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Michigan and Alabama Advance Legislation to Ban Foreign Money in State Elections

By The Liberty Tribune Staff

Published: · Updated: · 4 min read

Free picture about a huge sum of money for exchange conversions in international currency markets and digital forex trading. This paper money picture was created for you by the non-profit friend epSos.de and it can be used for free, if you link epSos.de as the original author of this image. <p>This picture was published in here first: epsos.de/Simple-Safe-FOREX-Trading-Strategy-Advise </p><p>Thank you for supporting the creative commons movement ! </p><p>Money is a specific product, which has the universal equivalent value to other goods or services. Usually, money is a product with high liquidity, that is the product that is most easily exchanged for another product (for example, often such product was cattle ). In addition to measures of value for other goods, money is a medium of exchange (mediator in the exchange ). Furthermore, the role of money can perform different things , other property rights, obligations and liabilities as proprietary systems. </p><p>Tool for treasures . If in a natural money to maintain the balance between cash and marketable weight needed to reduce the amount of money in circulation, they began to be deposited in the form of treasure . Treasures are different from savings that savings are a form of accumulation of funds for a specific purpose, at the desired size, or at the right time they spent. Treasures do without a specific purpose. The main reason for their formation - the inability (or unwillingness) of the effective use of all cash. Treasures are beginning to spend when the need of the economy in the money supply increases. In modern conditions, the role of money symbolic treasures in the regulation of the money supply is low. </p><p>Credit money - is the right to claim in the future with regard to natural or legal persons, specially designed debt, usually in the form of transferred securities that can be used to purchase goods (services) or to pay their own debts. Payment on such debt is usually done at a certain time, though there are options when the payment is made ​​at any time upon request. Lending money to bear the risk of default requirements. </p><p>Money market is a system of economic relations on the provision of funds for up to one year. The system of economic relations on the provision of funds for a period exceeding one year is called the capital market. Money market, along with the capital market is part of a general financial categories - financial market. </p><p>Participants in the money market is the one part of the person providing the money ( creditors ), and on the other hand - people borrowing money for certain conditions ( borrowers ). One of the categories of market participants are financial intermediaries . Provision of funds possible without financial intermediaries. </p><p>Interests of the participants in the money market are receiving income from transactions with various financial instruments of the money market. Lenders receive income in the form of interest on the transferred amount. Borrowers receive income in the form of additional profits derived from the use of the borrowed funds. Financial intermediaries receive income in the form of commission or interest-rate attraction and accommodation facilities. </p><p>International Finance - a concept characterized by a set of international financial resources in their movement. Globalization - the growth of world trade, the scale and specialization of production, the development of the international flow of capital , cross-border movement of goods , services and people - led to the development of international finance, the emergence of global financial markets , international financial corporations, the complexity of intergovernmental fiscal relations and other aspects of international finance. </p><p>International finance reflect the state and development of the ever-changing international monetary system, the state and changes in the balance of payments of individual countries, international financial markets, international financial corporations The main participants are the world's financial system: banks, multinational corporations , portfolio investors and international official borrowers. Global financial operations have become a dynamic force that have a significant impact on the financial systems of individual countries, and in concert with the global economic environment - a powerful tool for integration of economic and financial markets, countries and regions. They also contribute to the international spread of the crisis. </p><p>Foreign Exchange Market ( English. Foreign exchange Market, currency Market ) - is a system of stable economic and institutional relationships that arise in operations on purchase and / or sale of foreign currency , payment documents in foreign currencies, as well as operations on the movement of capital of foreign investors. </p><p>In the foreign exchange market is coordinating the interests of investors, buyers and sellers of currency values ​​. Western economists have characterized the foreign exchange market with the organizational and technical point of view as a total network of modern means of communication between the national and foreign banks and brokerage firms. </p> Authorized banks may buy or sell foreign currency concluding the transactions of its sales to the establishment of the delivery of these transactions no later than the second business banking day from the date of detention. This type of transaction is called a spot (cash) currency transaction and ongoing operations are performed on it on a "spot" with the calculation by the spot price . Called "spot foreign exchange transactions" combined three types of transactions on purchase and sale of foreign currency, require delivery of funds.
Republican lawmakers have recently made significant strides advancing aimed at banning financial contributions elections.

What's happening

Republican lawmakers in Michigan and Alabama have recently made significant strides in advancing legislation aimed at banning foreign financial contributions in state elections. These bills are designed to strengthen electoral integrity by preventing outside influence through monetary means. In Michigan, the House passed House Bill 5197 with a strong bipartisan vote of 97-6, while Alabama's House approved a comparable measure, House Bill 214, earlier in the week. Both pieces of legislation reflect growing concerns about the potential impact of foreign money on the democratic process at the state level.

The core issue driving these legislative efforts is the fear that foreign contributions could undermine the fairness and transparency of elections, particularly through funding ballot initiatives and campaign efforts. Critics argue that allowing foreign money into the electoral system risks skewing outcomes and eroding public trust in democratic institutions. Supporters of the bills emphasize the necessity of clear rules to ensure that only domestic sources influence state elections, thereby preserving the sovereignty and integrity of the electoral process.

House Bill 5197 in Michigan specifically targets ballot question committees, prohibiting them from knowingly accepting contributions from foreign nationals either directly or indirectly. The bill requires committees to obtain affirmations from donors confirming they are not foreign nationals and have not received substantial foreign funding in the past four years. If a violation is discovered, committees must return the contribution within 30 business days. The legislation also includes provisions for civil fines of up to twice the amount of any undisclosed foreign contribution, serving as a deterrent against non-compliance.

This legislative push comes amid heightened scrutiny of foreign influence in U.S. elections, with particular attention to organizations that have funneled large sums into ballot initiatives across multiple states. For example, the Sixteen Thirty Fund, linked to Swiss national Hansjorg Wyss, has reportedly contributed over $130 million since 2014 to ballot initiatives in 26 states, with Michigan receiving the largest share at $33.5 million. In 2022, the fund played a pivotal role in supporting a Michigan constitutional amendment to protect abortion rights, contributing more than $6 million to that effort alone.

What's at stake

Supporters of the Michigan bill, including Jason Snead, Executive Director of Honest Elections Project Action, have praised the House's decisive vote and urged the Senate to act quickly to pass the legislation. Snead highlighted the importance of safeguarding Michigan elections from foreign influence to maintain public confidence. Similarly, in Alabama, the GOP-controlled House passed HB 214 with overwhelming support. Alabama Secretary of State Wes Allen emphasized the need for elections funded honestly and transparently, expressing pride in the House's efforts to protect the state's electoral process from improper foreign involvement.

Both bills now move to their respective state senates for further consideration, where debates are expected to continue. While proponents argue these measures are crucial for protecting democracy, some critics caution that overly restrictive rules could inadvertently limit legitimate advocacy and contributions from lawful domestic sources. The tension between ensuring transparency and preserving free political expression remains a central theme in the ongoing discussion around campaign finance reform.

The issue of foreign money in elections has gained traction beyond Michigan and Alabama, with several states exploring similar legislation amid broader national concerns about election integrity. As these bills progress, they could set important precedents for how states regulate campaign financing in the future. The outcome will likely influence ongoing debates about balancing the need for transparency with the rights of political participation and advocacy.

Looking ahead, the key developments to watch include the response of the state senates to these bills and any potential amendments that might address concerns raised during the legislative process. Additionally, monitoring how enforcement mechanisms are implemented and whether these laws withstand legal challenges will be critical. The broader national conversation about foreign influence in elections is poised to intensify, with Michigan and Alabama’s legislative actions serving as important case studies in this evolving issue.

Why it matters

The bills aim to prevent foreign money from influencing state elections and ballot initiatives. Foreign contributions are seen as a threat to the fairness and integrity of democratic processes. Civil fines up to double the amount of undisclosed foreign contributions serve as strong deterrents.

Banning foreign nationals from contributing or spending on ballot questions enhances transparency. Large sums from foreign-linked organizations have been funneled into state ballot initiatives, raising concerns.

Key facts & context

Michigan's House passed House Bill 5197 with a vote of 97-6 to restrict foreign contributions in elections. Alabama's House approved House Bill 214 earlier the same week, reflecting similar concerns. Both bills target contributions to ballot question committees and campaign financing.

The Michigan bill requires donor affirmations to confirm no foreign nationality or funding. Committees must return contributions found to violate the foreign funding ban within 30 business days. Civil fines can be imposed up to twice the amount of any undisclosed foreign contribution.

The Sixteen Thirty Fund has contributed over $130 million to ballot initiatives in 26 states since 2014. Michigan received $33.5 million of that funding, including over $6 million for a 2022 abortion rights amendment. Supporters argue these bills protect election integrity and prevent foreign interference.

Opponents caution that restrictions might limit legitimate domestic advocacy and contributions. The bills now proceed to the state senates for further debate and potential passage. Election integrity concerns have prompted similar legislative efforts in other states.

Timeline & key developments

2026-02-06: Michigan and Alabama Advance Bills to Ban Foreign Money in Elections. Additional reporting on this topic is available in our broader archive and will continue to shape this timeline as new developments emerge.

Primary sources

Further reading & references

  • (Additional background links will appear here as we cover this topic.)

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Tags: Michigan Alabama Elections Foreign Money Legislation
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