Despite federal laws prohibiting foreign funding of candidate elections, foreign individuals and entities are still able to fund campaigns related to state and local ballot initiatives in multiple jurisdictions, creating a loophole that hostile foreign actors can exploit to influence American elections.

Key points:

  • Federal law prohibits foreign nationals from contributing to candidate campaigns or political parties, but not ballot propositions.
  • Foreign nationals and corporations have spent money to influence state or local ballot measures, with one group spending $130 million over 10 years.
  • Only 27 states ban either foreign individuals and/or corporations from participating in ballot initiatives.
  • Of the 26 states featuring statewide citizen-led initiatives or referenda, 17 have bans on foreign funding.
  • 48 states feature local ballot measures, with 21 states allowing foreign funding.