New Bill Bans Foreign Money from State and Local Ballot Initiatives Immediately

The “Stop Foreign Funds in Elections Act” is short, but it makes a significant change to who can put money into local politics. Essentially, this bill takes the existing federal rule that bans foreign nationals from donating to presidential or congressional campaigns and applies it straight down to state and local elections—specifically those involving ballot initiatives, referenda, or recall elections.

What’s the Real Change?

If you follow campaign finance, you know that foreign nationals—people who aren't U.S. citizens or lawful permanent residents—have been barred from donating to federal candidates for ages. This bill, covered under Section 2, extends that ban. Now, if your city is voting on a huge bond measure for a new transit system, or your state is deciding on a referendum about minimum wage, foreign nationals can’t donate money to the campaigns supporting or opposing those measures. The bill specifies that this prohibition applies to contributions or donations made in connection with any State or local ballot initiative, referendum, or recall election, and it kicks in the moment the Act becomes law.

Why This Matters for Your Town

Think about local issues that can draw big money: measures to approve massive real estate developments, environmental regulations affecting local industry, or efforts to recall a city council member. These are the kinds of local fights where outside money can swing the outcome. For regular voters, this change means that the financial muscle behind local campaigns should, in theory, be purely domestic. The aim here is simple: to stop foreign governments, corporations, or individuals from using money to influence local policy decisions that affect U.S. citizens—whether that’s a new tax on your property or a change in local labor laws.

The Upshot: Clarity and Integrity

This is a pretty straightforward bill that doesn't leave much room for interpretation, which is good news for election transparency. It simply closes what some see as a loophole where foreign money could bypass federal restrictions and influence important state and local votes. By mirroring the federal ban, the bill enhances the integrity of local democratic processes. While it might affect certain advocacy groups that rely on international funding for local campaigns, the overall intent is to ensure that when your community votes on a local issue, the money driving the debate comes from within the community or the country, not beyond its borders.