U.S. Chamber of Commerce Sued Hawaii Over Act 11

The lawsuit aims to block a state law that restricts corporate and union spending on political campaigns.

Updated on Sept. 25, 2026 in Law

U.S. Chamber of Commerce Sued Hawaii Over Act 11

Live Poll

Should corporations have the same legal right to spend money on elections as individual citizens?

The U.S. Chamber of Commerce has filed a lawsuit against Hawaii Attorney General Anne Lopez and Department of Commerce and Consumer Affairs Director Nadine Ando. The suit seeks to overturn Act 11, a law that prohibits corporations, nonprofits, and unions from spending money on political campaigns and ballot measures.

Why it matters

The Chamber argues that the law violates First Amendment rights regarding political speech and spending. Hawaii lawmakers drafted the bill specifically to challenge the precedent set by the 2010 Citizens United Supreme Court ruling.

Act 11, signed in May 2026, imposes severe penalties for violations, including suspension of operating authority and forced dissolution. It includes an inseverability clause and is scheduled to take effect on July 1, 2027.

The players

Anne Lopez

She serves as the Attorney General of Hawaii and is a named defendant in the lawsuit.

Nadine Ando

She is the Director of the Hawaii Department of Commerce and Consumer Affairs and a named defendant in the legal challenge.

U.S. Chamber of Commerce

This is a large business federation based in Washington D.C. that represents the interests of various corporations.

Grassroot Institute of Hawaii

This organization is an independent public policy research group that filed a separate constitutional challenge against the law.

The details

The lawsuit requests that the court declare the legislation unconstitutional and permanently block its enforcement. The law applies to both Hawaii-based and out-of-state corporations planning to participate in the 2027-2028 election cycle.

2010: The Supreme Court decided Citizens United v. FEC.
May 2026: The governor signed Act 11 into law.
June 2026: The Grassroot Institute of Hawaii filed a separate constitutional challenge.
July 1, 2027: Act 11 is currently scheduled to take effect.

Law
Sept. 22
Ninth Circuit Reviewed Hawaii Firearm Laws
Natural Disasters
Sept. 25
Schatz Addressed Rising Disasters Across Hawai'i
Safety
Sept. 23
Governor Green Will Provide Hawaii Disaster Update

Need to Know

Act 11 is an explicit legislative effort to force a direct conflict with the 2010 Citizens United v. FEC Supreme Court ruling. By prohibiting political spending by unions and corporations, the state is testing the limits of protections established by that precedent.

The legal challenge creates uncertainty for businesses and unions regarding their ability to fund political messaging for the 2027-2028 election cycle. If the law survives the court challenges, organizations could face harsh penalties, including the forced dissolution of their operations in Hawaii.

The takeaway

The lawsuit highlights the ongoing tension between state-level campaign finance restrictions and federal constitutional protections. Readers should monitor the upcoming court rulings as they will determine whether Hawaii can successfully enforce its new political spending limits.