One Democrat governor signed a bill banning foreign funding of ballot initiatives, while another begrudgingly allowed it to become law, in what is becoming a national trend.
While such bans have gained bipartisan support, they have been largely driven by Republican lawmakers and conservative groups, citing the influence of foreign money in recent state ballot measures advancing abortion and redistricting.
Four states with Republican-controlled legislatures have passed bans on indirect foreign donations to ballot measures, but Kansas and Kentucky have Democrat governors.
Kentucky Gov. Andy Beshear signed the ban last week. Kansas Gov. Laura Kelly criticized the proposal, but allowed it to become law without a signature.
Wyoming also enacted a ban this year and Ohio was the first to pass a ban. A proposal has made it through both houses of the Indiana legislature, and will likely be signed, said Jason Snead, executive director of the Honest Elections Project. He said about 15 states are considering legislation this year.
“The final votes have been very bipartisan, but when we’ve been there for testimony, we’ve seen Democrats try to throw chum in the water,” Snead told The Daily Signal. “It’s difficult to politically stake out a position against this.”
It’s already illegal for foreign residents and entities to donate to U.S. political candidates. But there have been loopholes for state ballot initiatives.
Snead noted a marked difference from the debate last year in Ohio, where every Democrat voted against the measure, and the bipartisan backing in state capitols this year.
“We are not going to see a push in states with Democrat trifectas,” Snead said.
According to multiple news reports, since 2016, Swiss billionaire Hansjorg Wyss-funded organizations have contributed more than $240 million to the Sixteen Thirty Fund and the New Venture Fund, both of which have been part of the Arabella Advisors network.
The Sixteen Thirty Fund spent $97.6 million on state ballot initiatives in 25 states in the past decade, according to an April 2024 report by Americans for Public Trust, a conservative-leaning watchdog group. These included battleground states such as Michigan, Ohio, Colorado, and Nevada, the report says.
In a response to The Daily Signal, the Sixteen Thirty Fund did not directly address the state bans.
“Sixteen Thirty Fund is proud to support causes like abortion access and voting rights,” the Sixteen Thirty Fund statement says. “We follow the law, and our organization has publicly advocated for the passing of the DISCLOSE Act, which would increase campaign finance transparency and accountability.”
The Sixteen Thirty Fund did not respond to a followup request to confirm news reports about Wyss contributions, or respond to whether report by Americans for Public Trust was accurate. The New Venture Fund also did not respond to inquiries on whether the news reports were accurate about Wyss donations were accurate.
The Wyss Foundation and its lobbying arm the Berger Action Fund did not respond to inquiries for this story.
Beshear’s office did not detail House Bill 45, which banned donor organizations receiving foreign funds from bankrolling ballot initiatives. The governor’s office press release said the bill “strengthens campaign finance regulations,” and was among 20 bills he announced signing on March 25.
“We’ve been laser focused on addressing the everyday needs of our Kentucky families and communities, and the 20 bills I signed do just that,” Beshear said in the statement.
Beshear’s office did not immediately respond to inquiries from The Daily Signal for this story.
Kelly meanwhile said she opposed foreign funding of elections, but blasted the legislation despite saying she would allow it to become law.
“Federal law already prohibits foreign nationals from contributing to federal, state, or local elections,” Kelley said in a public statement. “If the Legislature had crafted something similar for Kansas, I would have signed it. But this bill goes too far. I cannot sign a bill that takes away the ability of Kansans and Kansas businesses to support elections if they accept money from overseas for any purpose, not just those related to elections.”
In addition to state proposals, there have been similar bills in Congress for a federal ban on both direct and indirect foreign funding for ballot initiatives.
A Federal Election Commission ruling dismissed a 2021 complaint that Australian mining company Sandfire Resources contributed over $280,000 to defeat a Montana ballot initiative that would have increased the power of state mining regulators. The FEC determined it lacked jurisdiction, and recommended Congress act to close the loophole.
