Michiganders to vote on limiting political donations by utility companies, government contractors

Michigan voters will have a chance to decide whether to limit certain campaign finances through a citizen-led initiative.

Proposal 2, also known as "Money Out of Politics," bans utility companies, contractors with over $250,000 in annual government contracts, and people and organizations with a significant connection to those companies or contractors from making campaign donations to politicians or political party committees. It would also expand disclosure requirements for donations related to political advertising.

On the ballot, it reads:

The proposal would:

• Prohibit regulated electric and gas utilities, contractors with over $250,000 annually in government contracts, and people and organizations with substantial connections to these utilities/contractors from making direct or indirect campaign contributions to those who run for or hold offices that impact them.
• Expand laws regulating spending on political communications, including those requiring disclosing donor information, to apply to communications clearly identifying candidates or ballot questions, even if they do not expressly advocate voting for/against them.
• Expressly apply the law requiring disclosure of who paid for political communications to internet political communications.

Should this proposal be adopted?

In September, the proposal received an endorsement from United Auto Workers union President Shawn Fain, who said in part, "Nothing has shaped the current corrupt state of our government like the rise of corporate money and influence."

How it was created

The initiative was led by the Michiganders for Money Out of Politics (MMOP) committee. The group, formed in July 2025, submitted a petition in September 2025 to amend the Michigan Campaign Finance Act and then submitted more than 560,000 signatures to the Bureau of Elections in May 2026. 

The Michigan Board of State Canvassers certified the votes two months later. 

Christy McGillivray, MMOP executive board co-chair, said in a statement,

"More than half a million people across the state signed our petition to put Proposal 2 on the ballot, and now the moment for Michiganders to take our government back from powerful corporate interests is here. It's past time we end the corrupt pay-to-play system that dominates our politics and make sure it's our voices that are heard, not the voices of big corporations bankrolling our politicians. 

"The stakes could not be clearer: Will we allow our government to remain up for sale to the highest bidder, or will we finally hold monopoly utilities and powerful corporations accountable and put the people of Michigan back in charge?" 

An opposing committee, Protect MI Free Speech, challenged MMOP's signatures before the Board of Canvassers' certification and argued that the proposal stripped businesses of their First Amendment rights.

"No individual group should be targeted and banned from participating in politics like this proposal seeks to do," spokesperson John Sellek told CBS News Detroit in August 2026.

The challenge went before the Michigan Supreme Court, but it was in September 2026.  

Who is it targeting?

MMOP has said the proposal targeted companies such as DTE Energy and Consumers Energy.

Both DTE Energy and Consumers Energy say they comply with state and federal campaign finance laws, are transparent about their contributions, and engage in political participation because policies enacted by local, state, and federal lawmakers affect them.

According to DTE's website, the company may use corporate treasury funds "for legally permissible contributions to political organizations for initiatives that support the goals and business objectives of the Company." Consumers Energy says all of its contributions are funded by corporate shareholder funds. 

Consumers Energy spokesperson Katie Carey sent CBS News Detroit the following statement:

"Mop Up Michigan's approach won't eliminate money in politics—it will simply shift influence away from Michigan companies and toward wealthy national donors and special interests, similar to the dark money funders of their ballot proposal. Meanwhile, local employers and their employees risk being sidelined. Meanwhile, out of state shell companies, independent expenditure groups and Super PACs would be granted disproportionate influence – and we've already seen it first hand with MMOP raising $7.4 million (and counting) to finance their ballot bullying."  

Both Consumers and DTE Energy referred CBS News Detroit to Sellek for additional comment. CBS News Detroit reached out to Sellek, who said, "Voters should oppose Proposal 2 because it uses voter frustration with the cost of living as cover to carry out a much wider sneak attack on the freedom of speech rights of thousands of innocent, everyday Michigan residents who would be banned from supporting the candidates of their choice simply because of who they are related to or contract with. Meanwhile. out-of-state billionaires can continue spending as they please to influence Michigan's public policy making." 

Sellek added, "Worse yet, Prop 2 is a betrayal of its own supporters because it claims to get money out of politics but uses millions in dark money from mystery donors outside our state to fund its effort." 

MMOP has previously criticized DTE and Consumers over recent rate hikes that were approved by the Michigan Public Service Commission. Last week, the commission OK'd a $139 million increase for Consumers Energy, which is more than 40% lower than originally requested.

"Consumers Energy has told us where they stand- they are on the record saying money buys them access," McGillivray said in response to the utility company. "Who are voters going to trust more on the impacts of this ballot proposal, the more than 560,000 Michiganders who signed the petition to get this onto the ballot or Consumers Energy?"

Michigan House, Senate on Proposal 2 

The Michigan House passed Proposal 2 in August with bipartisan support, but the state Senate did not move forward, allowing the initiative to go before voters.

If adopted by the Senate, the proposal would have become law without the residents voting. But Senate Majority Leader Winnie Brinks said at the time that they wanted to leave it up to Michiganders.

"Senate Democrats already agree that there is too much dark money in politics, and we are eager to hear what voters have to say on this issue. In that spirit, we will not be subverting the will of the voters by taking it up legislatively," said Brinks, who is currently running alongside Michigan Secretary of State Jocelyn Benson in the gubernatorial race.