Federal Judge Likely to Allow Challenge to Hawaii’s Corporate Spending Ban
Judge Kobayashi appears inclined to let constitutional challenge to Hawaii’s Act 11 proceed.
Why it matters: The case could reshape how states regulate corporate spending in elections post-Citizens United, clarifying limits on political speech rights and campaign finance controls.
- Hawaii’s Act 11, signed May 14, 2026, bans corporate spending on candidates, parties, and ballot measures, effective July 1, 2027.
- Grassroot Institute of Hawaii sued in June 2026, claiming Act 11 violates the First Amendment and is vague.
- On October 13, 2026, Judge Leslie Kobayashi signaled she may deny Hawaii’s motion to dismiss, allowing the lawsuit to move forward.
- The Campaign Legal Center and CREW support Hawaii’s law in a September 21, 2026 amicus brief, framing Act 11 as a response to Citizens United.
Hawaii’s Act 11, enacted May 14, 2026, restricts corporations and like entities from spending money to support or oppose candidates, political parties, or ballot measures. It aims to curb corporate influence in elections by leveraging Hawaii’s authority over corporate powers.
The Grassroot Institute of Hawaii filed suit in June 2026, challenging the law’s constitutionality on First Amendment grounds and alleging vagueness. The Institute argues that Act 11 infringes on political speech rights established under the 2010 Citizens United v. FEC decision, which allowed unlimited corporate spending in campaigns.
On October 13, 2026, U.S. District Judge Leslie Kobayashi appeared inclined to deny the State of Hawaii’s motion to dismiss, signaling that the constitutional challenge will proceed in court. This marks a critical turn for the case, which could shape how far states can go in limiting corporate political expenditures.
The lawsuit has drawn significant attention from groups on both sides. The Campaign Legal Center and Citizens for Responsibility and Ethics in Washington filed an amicus brief on September 21, 2026, supporting Hawaii’s defense of Act 11. They described it as “a reasonable response, through Hawaii’s own corporate law, to the failure of every safeguard the Supreme Court relied on in Citizens United.”
If allowed to move forward, this case could set important precedents for the scope of state-level campaign finance regulation, especially regarding limits on corporate political spending in the wake of Citizens United.
By the numbers:
- May 14, 2026 — Hawaii signs Act 11 into law
- July 1, 2027 — Act 11 scheduled to take effect
- June 2026 — Grassroot Institute files its lawsuit
- September 21, 2026 — Amicus brief filed supporting Hawaii
Yes, but: Though the motion to dismiss appears likely to be denied, the case is still at an early procedural stage; the final constitutional ruling remains uncertain.
What's next: The court will proceed with the constitutional challenge against Act 11, but no timeline for final decision is set yet.