Supreme Court Strikes Down Montana’s Limits on Corporate Political Spending

In a per curiam opinion, the U.S. Supreme Court has summarily reversed the Montana Supreme Court decision that upheld that state’s prohibition on political spending by corporations:

“The question presented in this case is whether the holding of Citizens United applies to the Montana state law. There can be no serious doubt that it does. See U. S. Const., Art. VI, cl. 2.”

Four justices – Breyer, Ginsburg, Sotomayor and Kagan – dissented.

The Court extended the reasoning of the Citizens United decision, applying it to state and local elections. This will give corporations the ability to spend freely to support or oppose political candidates in state and local elections.

Montana’s law was support by 22 states (including New York) that sought a full hearing before the Court on the states’ compelling interest in regulating corporate spending in state and local elections.

What does this mean for New York?  Both the state and New York City require disclosure of independent expenditures, so this decision will have no impact in that respect.  But in my view, it is just a matter of time before someone challenges Election Law § 14-116(2), which limits corporations aggregate contributions to $5,000 per year.