Judge blocks Minnesota campaign law to limit donations from corporations with foreign ownership

A federal judge has permanently blocked the implementation of a Minnesota campaign finance law that aimed to dramatically limit political contributions from corporations with foreign ownership.

U.S. District Judge Eric Tostrud issued the order Friday afternoon after granting a preliminary injunction late last year before the law’s Jan. 1 effective date. In his ruling, Tostrud said Minnesota’s law was too broad.

The U.S. Supreme Court ruled in Citizens United that the First Amendment gives corporations free-speech rights. The decision opened the door to a flood of corporate political donations in state and federal politics.

“Citizens United cautions that the loss of corporations’ political speech, and consequently their First Amendment rights, must not ... be taken lightly,” Tostrud wrote in his order.

“Because Defendants have not identified evidence that minority foreign shareholders exercise influence or control over corporations’ political expenditures, the challenged provisions ... sweep too broadly as a matter of law.”

The law was passed by the DFL trifecta as part of a sweeping elections reform package that also created an automatic voter registration system in the state and allowed 16- and 17-year-olds to preregister to vote. Gov. Tim Walz signed the bill into law in May 2023.

The Minnesota Chamber of Commerce, the state’s largest business trade organization, quickly sued the Minnesota Campaign Finance and Public Disclosure Board and Ramsey County Attorney John Choi to block the law from going into effect, arguing it was an “unconstitutional infringement on Minnesota businesses’ right to free speech.”

“This decision marks a significant victory for the Minnesota business community, safeguarding our constitutional rights and ensuring our continued ability to engage in political discourse. We are proud to stand on behalf of our members and Minnesota businesses in this matter,” said Doug Loon, president and CEO of the Minnesota Chamber of Commerce.

The law blocked any company or nonprofit with a foreign investor who holds 1% or more of shares from making donations in Minnesota elections.

Groups also sued to undo Minnesota’s new law allowing people with felony convictions on their record to vote after they are released from prison. The Minnesota Supreme Court upheld felon voting rights in a ruling in August.