Michigan blocks utility and contractor campaign donations

Michigan voters approved Proposal 2 on November 4, 2026, establishing new limits on who can contribute money to political campaigns in the state. The citizen-led initiative restricts contributions from regulated utility companies and government contractors that hold large state contracts.

The measure specifically bars regulated utilities, including DTE Energy and Consumers Energy, from donating to political campaigns. It also prohibits government contractors with state contracts exceeding $250,000, as well as people associated with those entities, from making such contributions. The ballot question was placed on the ballot after the organization Michiganders Money Out of Politics, known as MOP UP Michigan, collected more than 560,000 signatures.

Opponents of the measure argued that the restriction unfairly targets local industries while potentially allowing more influence from out-of-state donors. DTE Energy stated that the proposal is a direct attack on Michiganders intended to silence them from participating in issues that affect their lives. The company said it will continue to oppose efforts that shift influence to out-of-state billionaires and special interest groups.

Consumers Energy expressed similar concerns, stating that the approach will shift influence away from Michigan companies toward wealthy national donors. The company noted that its employees risk being sidelined in the political process. Consumers Energy said it will continue to advocate for its employees who voluntarily contribute to the CMS Energy Employees for Better Government, a nonpartisan political action committee governed by employees since 1977.

In a separate vote, Michigan voters rejected Proposal 1. This measure asked whether the state should convene a constitutional convention. The question is required to appear on the ballot every 16 years. The Associated Press projected that the proposal would fail.

The outcome of Proposal 2 marks a shift in how certain major state economic actors can participate in Michigan politics. The new rules take effect immediately following the election results.

The vote reflects a growing trend among voters to limit the influence of specific industries in local elections. By targeting utilities and large contractors, the new law aims to reduce the financial link between state business interests and political candidates.