Judge Signaled Intent to Allow Hawaii Act 11 Lawsuit

A U.S. District Court judge indicated the legal challenge against Hawaii's upcoming corporate spending law may proceed.

Updated on Oct. 14, 2026 in Law

Isometric editorial illustration of a volcanic basalt pillar rising from geometric ocean waves, representing the legal challenge in Hawaii. — U.S. District Judge Leslie Kobayashi signaled that a lawsuit challenging Hawaii’s Act 11, which limits organizational political spending, may proceed. AI Illustration. Upload story photo >

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U.S. District Judge Leslie Kobayashi has signaled her intent to allow a lawsuit challenging Hawaii's Act 11 to move forward. The judge indicated that the law, which restricts political spending by corporations, nonprofits, and unions, likely limits political speech.

Why it matters

The outcome of this challenge could determine if Hawaii can enforce restrictions on corporate and organizational spending in elections. Supporters describe Act 11 as a legislative response to the 2010 U.S. Supreme Court ruling in Citizens United v. FEC.

Act 11 prohibits corporations, nonprofits, and unions from spending money to support or oppose candidates or ballot measures. The law, which mandates penalties including potential corporate dissolution for violations, is scheduled to take effect July 1, 2027.

The players

Leslie Kobayashi

She is a U.S. District Judge who presided over the arguments regarding motions to dismiss the lawsuit.

Grassroot Institute of Hawaii

This organization advocates for limited government and individual liberty and filed the lawsuit challenging Act 11.

U.S. Chamber of Commerce

This is a large business organization that filed a separate legal challenge against the provisions of Act 11.

The details

The Grassroot Institute of Hawaii and the U.S. Chamber of Commerce have both filed separate challenges against the law. The state argues that it has the authority to dictate the powers granted to state-created corporations, including the ability to restrict political expenditure.

The Grassroot Institute of Hawaii was founded in 2001.
The Citizens United v. FEC ruling was issued in 2010.
A U.S. District Court judge heard arguments on dismissal motions in October 2026.
Act 11 is scheduled to take effect on July 1, 2027.

Political Context

Opponents argue the law unconstitutionally infringes upon free speech protections established by the Supreme Court in the 2010 Citizens United v. FEC ruling. Critics contend that these restrictions place an undue burden on organizations seeking to participate in the public discourse surrounding ballot measures and candidates.

If upheld, this law could significantly alter the amount and type of political messaging residents encounter regarding ballot measures. The statute imposes strict limits on corporate and union involvement, which may change how organizations lobby or engage with the public during election cycles.

The takeaway

This case highlights the ongoing tension between state-level regulatory authority and national free speech precedents. Residents should monitor the upcoming court ruling to see how it impacts future political engagement by corporate and nonprofit entities in the state.