A ballot initiative that would ban political contributions from Michigan's major utilities and large government contractors has cleared its final certification hurdles but now faces a legal challenge at the Michigan Supreme Court, setting the stage for a high-stakes fight over corporate influence in state politics ahead of the November 3 general election.
The proposal, known as Michiganders for Money Out of Politics, or MMOP, would amend Michigan's campaign finance law to prohibit regulated gas and electric utilities and companies holding more than $250,000 in annual state contracts from making political contributions. The measure would also extend the ban to individuals with substantial ties to those entities, including presidents, chief executive officers, treasurers, board members, and those with significant ownership stakes, as well as their immediate family members.
If approved by voters, the proposal would bar campaign contributions from monopoly utilities, including DTE Energy and Consumers Energy. The ban would apply to contributions supporting officials who oversee utility regulation, such as members of the Michigan Public Service Commission, and would also prohibit affected individuals from donating to organizations affiliated with elected officials or candidates that pay for travel, meals, or other expenses.
The proposal has received the required approvals for ballot language and petition signatures, with more than 500,000 signatures collected. According to a July 30 campaign finance report, the progressive dark money nonprofit All Hands on Deck is the single largest donor to MMOP, contributing a total of $5.4 million out of the $7.4 million the committee has received.
Supreme Court challenge
The ballot proposal faces a court challenge from Protect MI Free Speech, a ballot question committee opposing MMOP, which filed a lawsuit on August 4 alleging that the Board of State Canvassers failed to follow protocol when certifying the petition. The lawsuit asks the Michigan Supreme Court to hear the challenge and block the measure from reaching the November ballot.
A business-backed group is asking the Michigan Supreme Court to block the petition campaign from going to the ballot. DTE Energy and Consumers Energy have both raised concerns about the measure, with DTE describing the proposal as an attempt to silence lawful participation in political issues.
No oral argument has been scheduled in the case, according to Alexandria Kelly, administrative assistant at the Michigan Supreme Court.
Legislative intervention possible
Michigan lawmakers could still intervene before the election. The Legislature has until September 5 to adopt, reject, or take no action on the ballot proposal. If the Legislature takes no action by that deadline, the proposal will automatically be placed on the ballot, the Secretary of the Senate's office confirmed.
Michigan House Speaker Matt Hall (R-Richland Township) could keep the measure off the ballot by adopting it, according to Michigan Reps. Carrie Rheingans (D-Ann Arbor) and Betsy Coffia (D-Traverse City). If the ballot proposal is fully adopted by the Legislature before the deadline, it will not appear on the November ballot.
Legislators could later amend or overturn the proposal with a simple majority and the governor's approval in a subsequent session. In contrast, amending or repealing a law passed via a ballot proposal is considerably more difficult, requiring a three-fourths majority of the Legislature and the governor's approval.
Hall did not respond to a request for comment on the MMOP initiative.
Rheingans suggested the idea of legislative adoption may be driven by partisan strategy. "I believe the massive enthusiasm that was demonstrated during the primary has terrified Matt Hall and Michigan Republicans," Rheingans said.
The Michigan Legislature previously used an "adopt and amend" strategy in 2018 with the Michigan One Fair Wage proposal to increase the minimum wage, and the Michigan Time to Care proposal to require most employers to provide paid sick time, blunting the impact of both efforts.
What the proposal does and does not do
Christy McGillivray, co-chair of the MMOP steering committee, said the initiative is fighting to change the rules of a broken campaign finance system.
"Until our proposal passes and those rules change, we're operating under the same laws as everyone else while working to reform them," McGillivray said in a statement.
The proposal would require disclosure for groups that reference candidates or ballot issues in issue ads, but would not ban contributions to independent expenditure super PACs, which remain legal under the U.S. Supreme Court's Citizens United decision. The measure includes a severability clause, meaning that if any part is struck down by courts, the remaining sections would stay in effect.
If enacted, the law would not prevent utilities or contractors from publicly supporting candidates or issues, but would limit their ability to make direct financial contributions to certain political campaigns and committees.
The stakes
The proposal comes at a time when DTE Energy and Consumers Energy are seeking rate hikes totaling over $900 million, raising the urgency for supporters who say the measure is essential to reducing corporate influence over regulators and elected officials who oversee the utilities.
The Michigan Public Service Commission holds regular meetings where utility matters are discussed and decided, with the August 27, 2026 meeting available virtually. The commission is also hosting an "Affordability in Focus" community workshop in Detroit at 6 p.m. on September 3.
The outcome of the utility donation ban could set a precedent for future campaign finance reforms in the state and would likely trigger further legal challenges if it passes. Michigan's campaign finance laws are overseen by the Secretary of State and enforced by the Bureau of Elections, with the Board of State Canvassers responsible for certifying ballot proposals.