Is Montana Quietly Legalizing Foreign Cash?

Montana’s so-called “ban” on foreign election funding has a loophole so big you could drive an Australian mining truck through it – and conservatives are demanding Governor Gianforte shut it down.

At a Glance

  • Conservative groups are urging Montana Governor Greg Gianforte to veto House Bill 818 due to significant loopholes
  • The bill was amended to allow U.S.-based political organizations to funnel foreign money into Montana ballot initiatives
  • Six states have already enacted actual bans on foreign funding of state ballot initiatives
  • The Federal Election Commission previously identified this loophole after dismissing a complaint against an Australian mining company
  • Critics warn that organizations like the Sixteen Thirty Fund could exploit the bill to drown out Montana voters

A Foreign Funding Loophole Big Enough to Swing Elections

When you hear “banning foreign influence in elections,” it ought to mean exactly that. But in Montana, House Bill 818 has devolved into a watered-down measure that practically rolls out the red carpet for foreign money to pour into state ballot initiatives through U.S.-based organizations. The Montana Legislature has managed to take what should have been a straightforward protection of electoral sovereignty and transform it into Swiss cheese – full of holes that undermine the very purpose of the legislation. This isn’t just disappointing; it’s a slap in the face to every Montana voter who believes their voice should count more than foreign interests.

While federal law already prohibits foreign contributions to political candidates, a gaping loophole exists for ballot initiatives. This isn’t theoretical – it’s already happened in Montana. The Federal Election Commission was forced to dismiss a complaint against Australian mining company Sandfire Resources for contributing to a Montana ballot initiative because they lacked the authority to act. Rather than closing this loophole decisively, HB 818 in its current form would still allow foreign money to flow through U.S.-based organizations directly into state ballot measures. It’s like installing a security system that only protects the front door while leaving all the windows wide open.

Conservative Organizations Sound the Alarm

A coalition of conservative organizations including Heritage Action for America, the Honest Elections Project, and Americans for Public Trust are taking a stand against this deceptively ineffective legislation. These groups recognize that ballot initiatives are essential components of Montana’s democratic process and allowing them to be influenced by foreign money fundamentally undermines state sovereignty. What’s the point of having local ballot initiatives if foreign billionaires and corporations can simply buy the results they want through clever financial laundering schemes?

“Heritage Action has seen a groundswell of conservative grassroots support nationwide to ban foreign funding for state ballot initiatives. Six states have enacted laws prohibiting this corrupt practice, and several more states are considering similar legislation. Unfortunately, HB 818 stops short of actually protecting Montanans’ voices at the ballot box. We urge Gov. Gianforte to veto this ineffective foreign funding legislation.” – Janae Stracke.

Six states have already implemented genuine protections against foreign funding of ballot initiatives. These states understand that true election integrity means keeping all foreign money out – not just the direct contributions while allowing laundered funds to flow freely. Montana had the opportunity to join them in protecting their democratic processes, but instead produced this half-measure that offers the appearance of action without the substance. It’s political theater at its worst, and Montana voters deserve better than a bill that pretends to solve a problem while actually enshrining it into law.

The Sixteen Thirty Fund Problem

Critics specifically point to organizations like the Sixteen Thirty Fund, associated with Arabella Advisors, as exactly the type of group that could exploit this loophole. These massive, dark-money operations can easily collect foreign funding and then distribute it to influence state ballot measures, effectively bypassing any meaningful restrictions on foreign interference. Under HB 818’s current framework, they’d be free to continue this practice, rendering the supposed “ban” virtually meaningless. This isn’t protecting democracy – it’s offering it up to the highest international bidder.

“House Bill 818 was originally intended to protect the integrity of Montana elections by banning foreign influence. Unfortunately, the Montana Legislature passed a version of the bill with amendments that leave it substantially weakened. If signed into law, foreign-funded groups like the Sixteen Thirty Fund would remain free to pour millions into state ballot measures, drowning out the will of Montana voters. We urge Gov. Gianforte to veto House Bill 818 so that lawmakers can pass a true ban on foreign funding for ballot measures. The people of Montana deserve no less.” – Jason Snead.

Governor Gianforte now faces a critical decision that will reveal whether Montana is serious about election integrity or merely interested in the appearance of it. The current version of HB 818 accomplishes nothing meaningful while providing political cover for legislators who want to claim they’ve addressed foreign influence in elections. Real leadership requires rejecting inadequate measures and demanding genuine solutions. If Governor Gianforte truly cares about protecting Montana’s democratic processes from foreign interference, the only appropriate action is a veto, followed by demands for legislation that actually closes this dangerous loophole once and for all.