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Watchdogs: New Montana Law on Foreign Election Funding Falls Short

Montana’s New Foreign Spending Ban on Ballot Measures Criticized for Loopholes

(The Center Square) – Montana has recently enacted a law banning foreign entities from contributing to ballot measure campaigns, becoming the sixth state this year to introduce such legislation. The move received overwhelming Republican support, with limited Democratic backing.

The law prohibits non-U.S. citizens, foreign governments, and foreign-owned entities from financial contributions to ballot measure efforts. However, it includes exemptions for U.S.-based foreign-owned companies that pay state taxes and utilize only domestically generated funds from American citizens or permanent residents.

Watchdog organizations argue that the law is insufficient, as it does not prevent American advocacy groups from receiving foreign funds and spending on ballot issues. Jason Snead, executive director of the Honest Elections Project, highlighted the risk of intermediary groups acting as “money launderers” for foreign donations. He noted that measures in other states, like Missouri, mandate organizations to certify they haven’t accepted excessive foreign funding over four years, a safeguard missing from Montana’s legislation.

One prominent entity, the Sixteen Thirty Fund, has received significant contributions from Swiss billionaire Hansjörg Wyss and has spent millions in Montana, including over $3 million on a recent abortion rights ballot initiative. Despite its foreign funding sources, the fund operates as an American-based entity, allowing it to circumvent Montana’s new restrictions.

Critics, including Americans for Public Trust’s Caitlin Sutherland, suggest that Montana should adopt stricter regulations like those implemented in states such as Ohio, Wyoming, and Kansas. Heritage Action’s Montana director, Kristen Christensen, expressed concerns about the law’s effectiveness in protecting electoral integrity, urging a veto from Governor Greg Gianforte.

Both Snead and Christensen caution that existing loopholes could be exploited by foreign adversaries, underscoring the need for stronger safeguards against foreign influence in American politics.

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