Political Contribution Limits, Labor Unions, and Businesses

Litigation and Free Speech & Election Law Practice Groups Teleforum

The laws of six states prohibit businesses—but not unions or other groups—from contributing to political parties, committees, or candidates. On February 24, 2015, the Goldwater Institute filed suit on behalf of two family-owned Massachusetts businesses to challenge Massachusetts’ political contribution ban. Since 1908, businesses have faced a total contribution ban, but special rules implemented in 1988 allow unions to contribute as much as $15,000 before any disclosure requirements or other contribution limits apply to the union. After unions have donated $15,000 to campaigns, their PACs can continue to contribute up to the ordinary limits. Meanwhile, business-funded PACs are banned from contributing. Does the Massachusetts law violate state and federal constitutional guarantees of equal protection, free speech, and free association?

• Jim Manley, Senior Attorney, Scharf-Norton Center for Constitutional Litigation, The Goldwater Institute

The laws of six states prohibit businesses—but not unions or other groups—from contributing to political parties, committees, or candidates. On February 24, 2015, the Goldwater Institute filed suit on behalf of two family-owned Massachusetts businesses to challenge Massachusetts’ political contribution ban. Since 1908, businesses have faced a total contribution ban, but special rules implemented in 1988 allow unions to contribute as much as $15,000 before any disclosure requirements or other contribution limits apply to the union. After unions have donated $15,000 to campaigns, their PACs can continue to contribute up to the ordinary limits. Meanwhile, business-funded PACs are banned from contributing. Does the Massachusetts law violate state and federal constitutional guarantees of equal protection, free speech, and free association?

• Jim Manley, Senior Attorney, Scharf-Norton Center for Constitutional Litigation, The Goldwater Institute

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