US Chamber of Commerce sues Hawaii over law targeting Citizens United

The U.S. Chamber of Commerce sued Hawaii Attorney General Anne Lopez and Department of Commerce and Consumer Affairs Director Nadine Ando to block Act 11, a law set to take effect in 2027 that would bar corporations, unions, and nonprofits from spending money in state elections. Lawmakers designed the law to directly challenge the Supreme Court's 2010 Citizens United ruling, reasoning that since Hawaii creates corporations, it can limit what political powers they keep.

The chamber's complaint zeroes in on a wrinkle: Act 11 also tries to regulate corporations formed in other states, entities Hawaii never chartered. Notably, Attorney General Lopez herself testified against the bill while it was pending, calling it likely impossible to defend unless the Supreme Court reverses itself, and warning taxpayers could foot a large legal bill defending it in court anyway.

Violators face penalties ranging from suspended business authority to forced corporate dissolution. This is the second lawsuit against Act 11 this year, following a June challenge from the Grassroot Institute of Hawaii arguing the law is unconstitutionally vague.

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