Maine can't enforce foreign election interference law that appeals court calls unconstitutional

PORTLAND, Maine (AP) — Maine can't enforce a voter-approved foreign election interference law that a federal appeals court said likely violates the Constitution by limiting political donations.

Voters overwhelmingly approved a ban on foreign governments and companies with 5% or more foreign government ownership from donating to state referendum races. The law is one of a handful around the country that attempt to limit foreign influence on U.S. elections.

The law has been on hold pending federal lawsuits from utilities companies and media organizations that raise constitutional challenges about it. The 1st U.S. Circuit Court of Appeals in Boston said in court papers in July that it affirmed a lower-court ruling that the law likely violates the First Amendment.

“The prohibition is overly broad, silencing U.S. corporations based on the mere possibility that foreign shareholders might try to influence its decisions on political speech, even where those foreign shareholders may be passive owners that exercise no influence or control over the corporation’s political spending," wrote Judge Lara Montecalvo.

The matter was sent back to the lower court, where it will proceed, and there has been no substantive movement on it in recent weeks, said Danna Hayes, a spokesperson for the Maine attorney general's office, on Monday. The law is on the state's books, but the state cannot enforce it while legal challenges are still pending, Hayes said.

Voters approved the law in 2023 by a margin of 86% to 14%. It followed a multimillion-dollar effort by a Canadian-owned utility to influence a project in Maine in which it's a partner.

The law reflects the will of Maine residents to ensure clean elections, said Rick Bennett, chair of Protect Maine Elections, the committee formed to support the 2023 ballot initiative. He said the fight to save the law was still ongoing.

“Mainers spoke with one voice: our elections should belong to us, not to corporations owned or influenced by foreign governments whose interests may not align with our own,” Bennett said in a statement.