US Chamber Sues Hawaii Over Law Blocking Corporate Election Spending
US Chamber sues Hawaii over new law curbing corporate political spending.
Why it matters: This case tests constitutional limits on regulating corporate political speech, with major implications for election law nationwide.
- Hawaii’s Act 11, signed May 14, 2026, bans corporations from spending on elections.
- The law redefines corporate powers to exclude political contributions and takes effect July 1, 2027.
- US Chamber filed lawsuit September 24, 2026, in Hawaii federal court, calling the law unconstitutional.
- The case, Chamber v. Lopez, challenges the law’s conditions on corporate speech as violating First Amendment rights.
On May 14, 2026, Hawaii Governor Josh Green signed Senate Bill 2471, known as Act 11, into law. This statute restricts corporate political spending by redefining corporations as entities limited to lawful business purposes. Crucially, it excludes the power for corporations to spend money or contribute anything of value to influence elections or ballot measures.
The Washington Post reports that Act 11 will apply to all corporations operating in Hawaii, including those incorporated out of state, and will go into effect on July 1, 2027.
On September 24, 2026, the U.S. Chamber of Commerce filed a federal lawsuit, U.S. Chamber v. Lopez, in the U.S. District Court for the District of Hawaii. The Chamber names Attorney General Anne Lopez and Commerce Director Nadine Ando as defendants, arguing that Act 11 violates the First Amendment’s protections of corporate political speech.
Daryl Joseffer, President of the U.S. Chamber Litigation Center, stated, "The First Amendment does not allow government officials to decide who gets to participate in public debate." He added that Hawaii’s law "would silence businesses, nonprofits, trade associations and countless other organizations simply because lawmakers disagree with who is speaking." According to the U.S. Chamber, the complaint claims Act 11 improperly imposes an unconstitutional condition on incorporating in Hawaii by forfeiting speech rights and is overly broad.
The law is notable as the first state statute directly challenging the framework established by the 2010 U.S. Supreme Court decision Citizens United v. FEC, which permits corporations to spend unlimited funds in political campaigns. Hawaii’s Act 11 attempts to curtail corporate political influence by legally narrowing corporate powers and excluding election-related expenditures.
Senator Jarrett Keohokalole, Chair of Hawaii’s Senate Commerce and Consumer Protection Committee, remarked, "We have a long dark history in Hawaii of corporations overruling the will of the people," underscoring the state’s motivation behind the legislation.
This lawsuit sets a significant precedent in how far states can regulate corporate political spending without infringing on constitutionally protected free speech, potentially shaping election law and corporate political activity across the country.
By the numbers:
- May 14, 2026 — Date Act 11 was signed into law
- July 1, 2027 — Act 11’s effective date
- September 24, 2026 — Date U.S. Chamber filed its lawsuit