On August 6, 2024, the NAM filed an amicus brief asking the District of Minnesota to permanently enjoin enforcement of Minnesota’s Democracy for the People Act (DPA). The DPA significantly limits the ability of many businesses who have a foreign investor to participate in Minnesota’s political process. Specifically, the DPA contains “foreign influenced corporation” provisions that forbid corporations and LLCs with a single foreign investor who holds 1% or more of shares¬—or those that have multiple foreign investors who own 5% or more of shares—from making donations to be used in Minnesota elections. The DPA subjects violators of this prohibition to criminal or civil penalties.
The Minnesota Chamber of Commerce sued Minnesota officials in the District of Minnesota, arguing that the DPA infringes its members’ First Amendment right to make independent expenditures or contributions to influence the outcome of ballot questions or elections. Last year, after the district court granted the plaintiff’s request for a preliminary injunction—enjoining Minnesota from enforcing the law scheduled to take effect January 1, 2024—the plaintiff moved for summary judgment. We argue in our brief that the DPA is unconstitutionally overbroad because it implicates corporate free speech rights without a compelling state interest. Minnesota purports to rely on preventing election corruption by foreign actors but that interest fails strict scrutiny because federal law already prevents election corruption by foreign actors. Further, DPA’s thresholds for identifying foreign-influenced corporations are set so low as to only be understood as an attach on corporate political speech rather than a targeted strike on foreign influence.