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“Montana Plan” challenged in federal court

A judge in late June granted Joshua Hughes of East Helena a five month sentence reduction.
lakshmiprasad S
/
iStockphoto
A judge in late June granted Joshua Hughes of East Helena a five month sentence reduction.

The lawsuit was quickly filed after voters approved the initiative Tuesday.

Hours after voters overwhelmingly approved Initiative 194, commonly known as “the Montana Plan,” a legal challenge has been filed against Attorney General Austin Knudsen and Secretary of State Christi Jacobsen.

The measure bans so-called “artificial persons,” including corporations, trusts and non-profits from contributing money to state and local elections, political parties or ballot measures. In filing the lawsuit, the Frontier Institute describes Initiative 194 as an unconstitutional prohibition on the First Amendment right to speech.

They say the law’s reach extends beyond political ads, claiming that publishing research or communicating with voters could force organizations to shut down if their communications are deemed to support or oppose candidates and ballot measures.

The Montana Republican Party has also joined in the lawsuit, claiming among other things, that the law would prevent it from publishing its newsletter.

Campaign organizers say they expected a lawsuit, and are confident in the legal foundation of the initiative. They describe the suit as quote “part of a much larger legal campaign to try to silence the will of the people.”

After winning approval by a two to one margin among voters, I-194 is set to become law in Montana on January 1st.

When asked for comment on the lawsuit, a spokesperson for the Montana Department of Justice said they had yet to be served. Y-P-R has also reached out to the Secretary of State’s Office for comment.

Similar plans have been discussed in other states. In Hawaii, a law passed by the legislature, though legal questions remain. Lawmakers in California, New Jersey and Pennsylvania have introduced their own measures in each of those state’s legislatures.

Bill joined Yellowstone Public Radio as News Director in the Summer of 2026. He has previously led radio newsrooms in Phoenix, Arizona and San Antonio, Texas. An Anchor, Reporter and Executive Producer at various times over the last three decades, Bill has covered a variety of stories over the course of his career, including Presidential visits in cities around the country and more than a dozen hurricanes, one of which led to him swimming across a Houston freeway!