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Politics

Oct. 6, 2026 | Read time 4 min

Ask the expert: What to know about Michigan Prop 2 ‘Money out of Politics’

Michigan is one of roughly half of the states in the country that allows citizens to collect signatures for voters to consider approving a law on the November statewide ballot. A certain threshold of signatures is required, as well as approval from the state’s board of canvassers.

This year, voters will have a campaign finance law to consider — known as Prop 2 — that would prohibit many companies with government contracts, as well as stateregulated utility companies, from making contributions to policymakers. The only other proposal facing voters is whether to hold a constitutional convention — known as Prop 1 — which is automatically on the ballot per Michigan’s constitution. Read more about Prop 1 on MSUToday.

Eric Walcott is a senior specialist for government and community vitality at Michigan State University Extension. Here, he provides insight into how Michigan’s process works and the potential implications if Prop 2 were to pass.

What are ballot proposals in Michigan and how does the process work?

A ballot proposal is a question on the ballot that lets Michigan voters decide on a proposed new law or change to the state constitution. There are four steps to understand how the process works.

Headshot of Eric Walcott
Eric Walcott is a senior specialist for government and community vitality at MSU Extension.
  • Signature gathering: A campaign group creates a petition and collects signatures from registered voters. Petitions to create or amend legislation require signatures from voters equaling 8% of the total votes cast for governor in the last election. That means petitions this year had to submit at least 356,958 valid signatures.
  • State review: The state Bureau of Elections reviews petitions to ensure there are enough valid signatures and, if so, the Board of State Canvassers certifies the petition.
  • Legislative review: Initiated laws go to the state legislature, where lawmakers have 40 days to pass it into law themselves or let it go to a public vote. The House or Representatives did vote to approve Prop 2, but the Senate decided not to act, sending the proposal to the November ballot.
  • Election: Because lawmakers did not pass this proposal, it goes on the November ballot. If voters pass it, the legislature will need a three/fourths supermajority to change or undo the law in the future.

What is the objective for supporters of Prop 2?

The ballot proposal was pushed by a group of stakeholders, “Michiganders for Money out of Politics.” Based on the proposal language and messaging from the campaign, there seems to be two broad goals related to this proposal. First, it seeks to limit the possible influence of certain corporations on elections in Michigan and,second, it seeks to increase transparency related to who provides funding for issue-ads (campaign ads that don’t directly say “Vote for…” or “Vote No on…”).

If voters were to pass the proposal, how would Michigan’s system change?

There are three primary impacts this proposal would likely have if voters approve it in November:

  • First, state regulated electric and gas utilities, their PACs, executives, lobbyists and some family members could no longer donate to state candidates, parties or utility regulators. Much of the attention focuses on the impact this would have on companies like Consumers Energy and DTE, but it would impact all state-regulated electric utility and natural gas and propane providers.
  • Second, it would prohibit campaign contributions from owners, executives, family members and some other associates of businesses with over $250,000 in state and local government contracts.
  • Third, it would require groups that run “issue ads,” which focus on political topics without specifically telling people how to vote, to disclose the same donor information that candidate campaigns and advocacy groups currently disclose. This proposal would require groups that spend over $5,000 on ads that promote, support, attack or oppose a candidate or ballot question, even if there is no specific advocacy, to disclose all donors who contribute over $100 in an election cycle.

It’s worth noting that some skeptics and opponents have brought up questions of whether the proposal would be an unconstitutional violation of freedom of speech, since the United States Supreme Court has previously ruled that campaign spending is political speech. So it is possible, maybe even likely, that if this proposal is approved, at least some sections of it will end up being the subject of future lawsuits and legal review.

What services does MSU Extension offer on these proposals?

MSU Extension produces summaries of statewide ballot proposals with the goal of making the proposals and their possible impacts easy for any voter to understand. The summary explains in more detail how the proposal would change the Michigan Campaign Finance Act, how these proposed changes compare to laws in other states, and some of the key questions about the proposal. The summary and summaries of proposals from previous years are available through MSU Extension.

We are also hosting a webinar on Oct. 14 in partnership with the Citizens Research Council of Michigan to provide education on both Proposal 1, the Constitutional Convention question, and Proposal 2. Those interested in attending can register for free online.

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