Fact check: Would ‘money out of politics’ proposal live up to its name?

September 5, 2026

A Michigan ballot initiative called Proposal 2, organized by Michiganders for Money Out of Politics, aims to ban political contributions from major utilities like DTE Energy and Consumers Energy, as well as companies holding state contracts exceeding $250,000. Critics argue the measure is selective because it would not restrict donations from out-of-state groups, dark money organizations, or labor unions, which are significant political contributors in Michigan. While the proposal wouldn't eliminate dark money spending entirely, it would require groups running issue advertisements near elections to disclose their donors, making Michigan potentially the first battleground state with such transparency requirements.

Who is affected

DTE Energy and Consumers Energy (monopoly utilities)
Companies with state contracts exceeding $250,000 (both Michigan-based and out-of-state)
Officials, board members, immediate family members, and substantial owners of impacted companies
Michigan political candidates and elected officials
Groups running issue advertisements within 100 days of general elections or 30 days of primaries
Labor unions that become government contractors
Voters in Michigan

What action is being taken

The initiative is slated to appear on the November 3 ballot for voter consideration. Groups are currently running campaigns both supporting and opposing the proposal.

Why it matters

This proposal represents a significant attempt to reform Michigan's campaign finance system by targeting "pay-to-play politics" where large utilities and state contractors can influence politicians through donations. If passed, Michigan would become the first political battleground state to require donor disclosure for issue advertisements, closing loopholes that allow groups to avoid transparency requirements. The measure addresses concerns that regular citizens' voices are being drowned out by corporate interests, particularly utility companies that hold monopoly positions and state contractors who benefit from government spending. However, the selective nature of the restrictions—exempting most unions and non-contractor out-of-state donors—has sparked debate about whether it genuinely levels the political playing field or simply shifts influence from one set of interests to another.

What's next

Voters will decide on Proposal 2 during the November 3 general election. Organizers acknowledge that additional reforms will be needed after this ballot initiative passes, as it was designed to address what they consider the biggest problems rather than fix the entire campaign finance system.

Read full article from source: bridgedetroit.com