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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNew research: Citizens United Can Be Made Irrelevant Via Changes To State Corporation Law
Last edited Mon Sep 22, 2025, 09:04 AM - Edit history (2)
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🔹 Full report
🔹 This is the regular deep dive (20:06) Audio Summary
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Here are the summary quotes that provide the basic context of the argument:
Justice Byron White's dissent 1986 SCOTUS Bowers v. Hardwick:
🔸 Corporate rights: ➪ Courts Protect
🔸 Corporate powers: ➪States Grant
==================================================
Analysis:
Fifteen years after Citizens United opened the floodgates of corporate and dark money, the Center for American Progress has figured out how to slam them back shut.
On Monday, CAP released "The Corporate Power Reset That Makes Citizens United Irrelevant"
This groundbreaking plan is the first challenge to Citizens United with a strong chance of surviving legal review. It rests on bedrock constitutional and corporate lawand every state in America can act on it right now. Montana is already moving forward as the test case
Heres the move: Corporations are creatures of state law. They start with zero powers, and states choose which powers to grant. When a state rewrites its corporation laws to no longer grant the power to spend in politics, that power simply does not exist. And without the power, theres no right to protect.
The result is sweeping: No corporate or dark money in ballot measures, local races, state electionsor even federal elections within the state.
This whole effort says: Um, no. That was never meant to be on the list of powers we handed our corps, and to be extra clear about it this time, so you dont screw this up again, were going to pass legislation that makes absolutely clear that that political-spending power is NOT on the list of powers we give out corporations.
This doesnt overturn Citizens United or violate it. It just clearly creates a new kind of corporation the kind states thought they were creating all along that does not have the power to spend in politics.
Two more quick points:
Supremacy Clause: were not regulating a right; were defining the corporate vehicle so it doesnt include that power. Rights protect an existing power. If the state never grants that power to its corporations, theres no right to attach to. People and PACs still speak.
Foreign corporations: states already say an out-of-state company cant exercise any power in the state that a local corporation doesnt have. So Delaware/Wyoming/Nevada charters dont create a loophole inside the state that adopts this.
Further discussion with the author at reddit/r/law










Easterncedar
(4,956 posts)Thanks. Time to introduce some legislation!
newdeal2
(4,219 posts)Our own version of project 2025 to pushback.
mtngirl47
(1,188 posts)
MayReasonRule
(3,850 posts)
xuplate
(133 posts)Scrivener7
(57,301 posts)Glad someone is finally looking at how to work around it.
But there's no excuse for it to have taken this long.
WestMichRad
(2,652 posts)some states (for instance, blue states) made this change to their laws, and others didnt? Corporations chartered in some states could do political spending, while those chartered in others couldnt? That would be an enormous imbalance
Scrivener7
(57,301 posts)Apparently, 81% of IPOs in 2024 incorporated in Delaware.
When I first read your comment, I thought yes, it would make blue states bluer and red states redder, and put purple states in jeopardy of becoming red. But because of Delaware, I don't think that would be true.
WestMichRad
(2,652 posts)I forgot about Delawares dominance in corporate charters.
MayReasonRule
(3,850 posts)
MadameButterfly
(3,581 posts)or even Delaware? How important is making political donations vs. other factors for where corporations locate? And why is Montana, a red state, leading the charge? Does it have a chance to pass there?
I'm leery after Citizens United that SCOTUS will allow it to be undermined this way. If they believe corporations are people, they can craft a response that keeps it that way.
But of course, we have to try.
ProfessorGAC
(74,616 posts)...incorporation in Delaware has long been preferred because of all the corporate favorable aspects.
For 100 years, it was preferred and corporations couldn't spend untold sums on politics.
This would be no different than before 2010.
Besides, political contributions are, under current law, an expense. If they quit massive political expenditures, expenses go down, so margins go up.
Shareholders are just as happy; maybe happier if they don't share the executuves' politics.
This is probably not a compelling to dissolve & reincorporate. Lots of cost, not much return.
Scrivener7
(57,301 posts)or for companies that want to become larger companies. https://gimmelaw.com/best-state-for-incorporation
And tax structures have a really huge effect on profitability. Delaware is kind of the gold standard in terms of established law, etc.
But there is some competition for smaller companies from a few other states.
And of course, nothing's to say other states can't jump on the bandwagon for this.
But I can't imagine it's easy to de-charter and then re-charter your company (if those are actually words) in order to make political donations. I have no idea what the "break even" point to do that would be, but I imagine it's high. So I imagine some wouldn't do it, and others would take a while to get it done.
And in the meantime, corporate money in politics is vastly reduced. And we need all the breathing room we can get.
Wednesdays
(20,820 posts)And hasn't voted Republican for president since 1988. So there's that.
70sEraVet
(4,931 posts)We need politicians who aren't owned by corporations! You won't find many in MY state, Tennessee.
Scrivener7
(57,301 posts)And Kamala won Delaware by 15 points.
Lucky Luciano
(11,757 posts)Maybe they all move to incorporate in South Dakota.
SickOfTheOnePct
(8,671 posts)...if Delaware were to pass this, would the cost to corporations be worth what they're gaining by current policies in Delaware.
And you can be sure that a red state (FL, NC, TN, TX, etc.) would step into the breach and move towards making their laws as friendly to corporations as DE is now.
Not saying it shouldn't be tried, but no state-based solution is linear.
MayReasonRule
(3,850 posts)They conclude that the costs and obstacles for relocating within another state are onerous enough so as to preclude the likelihood of such an occurrence.
Marthe48
(21,930 posts)wouldn't they be saving money by not donating to politics? Maybe the corporations could use the money to give raises and benefits to their employees.
Yes, I know..
Scrivener7
(57,301 posts)It would take a few years for the numbers to go against us, and in the meantime, we could make a lot of headway on reversing the mess we're in.
And it looks like Delaware is only less attractive than SD in the renewal fee. They could easily adjust that.
newdeal2
(4,219 posts)From my read, state of incorporation doesnt mean that other states cant regulate that corporations activities in their state. So no, it doesnt matter if they move to TX or not.
Scrivener7
(57,301 posts)honor the state's laws. BUT say the corporation operates in Texas but was incorporated in Delaware. Texas can't change the nature of Delaware corporation. And if Delaware says the nature of the corporation is that it can only donate X amount to politics, then Texas can't override that. If the corporation goes against Delaware's rules, no matter what state it is operating in, it loses it's status as a Delaware corporation, and is subject to all the tax nightmares that would cause.
MayReasonRule
(3,850 posts)
Response to 70sEraVet (Reply #5)
Lucky Luciano This message was self-deleted by its author.
MichMan
(16,000 posts)Scrivener7
(57,301 posts)MichMan
(16,000 posts)How do you prevent someone in Michigan, for example, of receiving TV or radio broadcasts from Toledo, which is only a few miles away? Some AM stations have signals that can travel to multiple states
Jamming of broadcast and radio transmissions across state lines, if that is even possible ? Good luck with that being allowed. Seems to reek of authoritarianism.
Scrivener7
(57,301 posts)hear ads?
MichMan
(16,000 posts)You could limit outside money being spent directly on local or state elections, but that would be the extent of it. I doubt you could just target corporations and allow it from other sources.
Scrivener7
(57,301 posts)MichMan
(16,000 posts)and preventing the ads from crossing the airspace into Chicago?
Scrivener7
(57,301 posts)in Delaware (81% of new corporations last year, and probably high percentage of already incorporated entities) cannot donate to political candidates anywhere above a proscribed amount or level without losing their tax structure designation.
So it's not about Michigan seeing Indiana ads. It's about all the corporations contributing a tiny percentage to political causes that they can contribute now. So the place the ads are seen doesn't enter into it. The benefit is that there will be vastly fewer dollars spent by corporations to make ads. Everywhere. And it doesn't matter where the ad was made and where it was seen. It only matters that a company incorporated in Delaware can now only donate a fraction of the current spending to make ads.
MichMan
(16,000 posts)Delaware has the majority of corporations because they are very corporate friendly. What makes you think they will pass it?
Scrivener7
(57,301 posts)Have a lovely day.
MichMan
(16,000 posts)They certainly could, but will they?
Until there is pending legislation with widespread support in Delaware, it is merely an academic exercise.
Scrivener7
(57,301 posts)than read about viable solutions to one of the most damaging problems facing our country.
Let them know they shouldn't let you be exposed to those solutions unless those solutions are fully complete and enacted.
MayReasonRule
(3,850 posts)
They're just rolling out this effort this week.
They're looking for people and institutions who would be willing to champion the effort, either through a ballot initiative or through the legislature.
Google around, ask around and let 'em know what you learn!
Tom Moore can be contacted at tmoore@americanprogress.org.
Scrivener7
(57,301 posts)take out a huge chunk of change. I hope it works.
I'll call my reps about it.
MayReasonRule
(3,850 posts)
MayReasonRule
(3,850 posts)Blowing up Citizens United would be an enormous step towards ensuring our return to reason's rule.
Returning to reason's rule is the only way that we restore our freedoms.
This is an excellent first step.
MichMan
(16,000 posts)
MayReasonRule
(3,850 posts)
Happy Sunday to ya, and here's to the return of reason's rule!!
Scrivener7
(57,301 posts)MichMan
(16,000 posts)of any kind for any candidate or issue. Not just in Illinois, but in all the other 49 states as well. Yet corporations in other states (red) have no constraints.
Let's say the election in 2028 is between Pritzker and Vance. So, any corporations in Illinois are forbidden to contribute to his election, but corporations in red states can spend freely towards Vance. Does that sound like a good idea?
Scrivener7
(57,301 posts)All those corporations are now restricted to whatever extent the law designates in the amount they can donate to political causes.
So no. Not any corporation in Illinois. Any corporation in Illinois that incorporated in Delaware, which will be the vast majority of them, can only contribute a finite amount to political entities.
The vast majority of the corporations operating in red states incorporated in Delaware too.
SickOfTheOnePct
(8,671 posts)...and I'm wondering the same thing.
Just to make things easy, think about NC, GA, & TN and the little corner where they all meet.
Say GA allows corporations chartered in GA to spend money on political ads.
NC makes a law that says out-of-state corporations that operate in NC can't spend money on political ads; so the GA corps in NC can't spend money on political ads.
TN allows out-of-state corporations operating in TN to spend money on political ads; a corporation in TN makes such an ad, and people living in NC are able to see ads on their TV (or hear ads on the radio) that originate in GA or TN.
Has the corporation broken NC law?
Scrivener7
(57,301 posts)it's the corporation.
To make it simple, say 75% of corporations were incorporated in Delaware (which is probably not very far off.) That includes most of the corporations in red states and in blue states.
If Delaware passes the law, NONE of them can contribute more than a proscribed amount to political causes. It's not going to stop NC candidates from seeing ads made in Georgia. It's going to vastly reduce the amount Haliburton can contribute to the making of ads. So everyone will see fewer ads, regardless of where they are or whether the state they are aired in has passed the law or not.
Ponietz
(4,043 posts)ToxMarz
(2,567 posts)Early corporations in the United States, which were modeled on British trading companies, were often chartered for a limited period, typically between 10 and 40 years. Unlike today's perpetual charters, these were temporary and required re-approval by the state legislature to continue existing
The purpose of time-limited charters
State legislatures in the early U.S. imposed expiration dates on corporate charters for specific public-interest reasons.
Preventing undue influence:
The state tightly controlled corporations to prevent them from amassing too much economic and political power. Lawmakers were wary of powerful, wealthy interests and built controls into the charter, including restrictions on capitalization and mandatory director rotations.
Limiting scope:
Early corporations were chartered to perform a specific public function, such as building a bridge or a canal. Once the purpose was achieved, the corporation was expected to terminate.
This has evolved into the exact opposite towards complete lack of regulation and "Corporations are people too..."
Everything always drifts to the extreme and once they get there, it's backers argue we're done and everyone should just get used to it. What's best is almost always somehwhere in between and ever changing, but that leads to the constant bickering and fighting (ie. democracy is messy debates) that is actually needed "in order to form a more perfect union".
Mustellus
(392 posts)... re-incorporate in a state that still allows bribery?
MayReasonRule
(3,850 posts)Fiendish Thingy
(20,859 posts)The court has ruled that money is speech, so any law restricting the use of corporate money would be considered a restriction on speech and therefore unconstitutional.
If I can think of that in just a few seconds, why hasnt anyone else?
MayReasonRule
(3,850 posts)Justice Byron White's dissent 1986 SCOTUS Bowers v. Hardwick:
🔸 Corporate rights: ➪ Courts Protect
🔸 Corporate powers: ➪States Grant
=================================================
Heres the move: Corporations are creatures of state law. They start with zero powers, and states choose which powers to grant. When a state rewrites its corporation laws to no longer grant the power to spend in politics, that power simply does not exist. And without the power, theres no right to protect.
Happy Sunday y'all!

Fiendish Thingy
(20,859 posts)SCOTUS has ruled money is speech; any law restricting corporate use of money could be ruled unconstitutional as a violation of the first amendment.
The fact that states grant corporations their powers doesnt mean a state can remove constitutional protections.
It appears the proponents of the strategy in your OP havent thought this through, or even consulted a lawyer.
MayReasonRule
(3,850 posts)Though the Supreme Court did not use these exact terms, Citizens United centered on the ability of government to regulate the right of corporations to exercise powers of political speech that the state had granted them. When the court wrote,
And because Citizens United was an entity to which Virginia had granted the power to spend in elections, the court found that Citizens United was an entity that had the right to spend in elections. Had Citizens United shown up in court as an entity to which Virginia had not given the power to spend in elections, the analysis would have to have been quite different.
A footnote in Citizens United itself underscores that the First Amendment comes into play only after a state chooses to grant corporations the power to engage in political spending. In his concurrence, Justice Scalia dismissed as irrelevant the dissents claim that the common law was generally interpreted as prohibiting corporate political spending: Of course even if the common law was generally interpreted to prohibit corporate political expenditures as ultra vires [beyond its authority and therefore void], that would have nothing to do with whether political expenditures that were authorized by a corporations charter could constitutionally be suppressed.26 The necessary inverse is clear: When the state does withhold that power, it may treat any corporate political spending as unauthorized and void without triggering First Amendment scrutiny.
Think of it this way: Humans are born with the inherent power to live freely, pursue happiness, and shape their destiny. But they have not been granted the power to fly. Birds have, bats, pterodactylsbut not humans. It is useless to discuss whether humans have a right to fly, because without the power to do so, the right to do so has no meaning. Even if the Supreme Court decreed that humans had a constitutional right to fly, there is no amount of arm flapping that would result in humans taking to the skies, because they would still lack that ability. This lack of power to fly could not be held to infringe on the right to fly that the Supreme Court had recognized. It is simply an underlying reality that no courtnot even the Supreme Courtcan touch.
Likewise, when a state exercises its authority to define corporations as entities without the power to spend in politics, it will no longer be relevant to discuss whether the corporations have a right to spend in politics, because without the power to do so, the right to do so has no meaning.
Every scrap of corporate speech jurisprudence centers on rights and the authority of government to regulate themand courts have consistently held that authority to be sharply circumscribed. The jurisprudence regarding states authority to grant powers to the corporations they create is entirely separate, and for more than a century, courts have consistently held that power-granting authority to be all but absolute.


Fiendish Thingy
(20,859 posts)Why wasnt this strategy attempted immediately after the Citizens United ruling?
It raises more questions than it answers.
Uncle Joe
(63,231 posts)of big money's dominance on the state level as well.
MayReasonRule
(3,850 posts)The Full Report regarding the full initiative and current test case is a great read that perchance might provide further insights outside of the generally 'known known' reasons.
I've not read the entire report as of yet, although I am making my way through it.
I'd love to hear back from you regarding what further perspectives you may gain as you continue to research the matter!
I'm back out to gardening...
Putting out more Japanese Black Trifele Tomatoes, Banana Leg Tomatoes, Sugar Rush Peach Peppers, Cauliflower, and Green Dragon Cucumbers today.
If I end up with enough time I'll sow some Purple Top White Globe Turnips and Broadleaf Mustard Greens after I pick the current round of Top Pick Pink Eye Mississippi Purple Hull Peas, Crimson Okra and Clemson Spineless Okra.
Our roo dog always helps!!
Scrivener7
(57,301 posts)SickOfTheOnePct
(8,671 posts)And I don't even have "I haven't had my coffee yet" as an excuse!
MayReasonRule
(3,850 posts)Though the Supreme Court did not use these exact terms, Citizens United centered on the ability of government to regulate the right of corporations to exercise powers of political speech that the state had granted them. When the court wrote,
And because Citizens United was an entity to which Virginia had granted the power to spend in elections, the court found that Citizens United was an entity that had the right to spend in elections. Had Citizens United shown up in court as an entity to which Virginia had not given the power to spend in elections, the analysis would have to have been quite different.
A footnote in Citizens United itself underscores that the First Amendment comes into play only after a state chooses to grant corporations the power to engage in political spending. In his concurrence, Justice Scalia dismissed as irrelevant the dissents claim that the common law was generally interpreted as prohibiting corporate political spending: Of course even if the common law was generally interpreted to prohibit corporate political expenditures as ultra vires [beyond its authority and therefore void], that would have nothing to do with whether political expenditures that were authorized by a corporations charter could constitutionally be suppressed.26 The necessary inverse is clear: When the state does withhold that power, it may treat any corporate political spending as unauthorized and void without triggering First Amendment scrutiny.
Think of it this way: Humans are born with the inherent power to live freely, pursue happiness, and shape their destiny. But they have not been granted the power to fly. Birds have, bats, pterodactylsbut not humans. It is useless to discuss whether humans have a right to fly, because without the power to do so, the right to do so has no meaning. Even if the Supreme Court decreed that humans had a constitutional right to fly, there is no amount of arm flapping that would result in humans taking to the skies, because they would still lack that ability. This lack of power to fly could not be held to infringe on the right to fly that the Supreme Court had recognized. It is simply an underlying reality that no courtnot even the Supreme Courtcan touch.
Likewise, when a state exercises its authority to define corporations as entities without the power to spend in politics, it will no longer be relevant to discuss whether the corporations have a right to spend in politics, because without the power to do so, the right to do so has no meaning.
Every scrap of corporate speech jurisprudence centers on rights and the authority of government to regulate themand courts have consistently held that authority to be sharply circumscribed. The jurisprudence regarding states authority to grant powers to the corporations they create is entirely separate, and for more than a century, courts have consistently held that power-granting authority to be all but absolute.


Scrivener7
(57,301 posts)MichMan
(16,000 posts)cksmithy
(398 posts)I am reading the full report from the website, almost done. Very interesting and hopefully it is something we can actually accomplish.