More than one billion dollars were spent in 2024 elections supporting or opposing state and local ballot measures. With high-profile and contentious issues expected to be on the ballot, such as congressional redistricting, AI regulation, minimum wage increases, and more, that number promises to be even larger in 2026. As state legislatures become more polarized and more focused on national political issues, ballot measures are increasingly seen as an alternative avenue for businesses, interest groups, and citizens to change state laws.

But ballot campaigns—whether initiatives, propositions, referenda, constitutional amendments, tax levies, bond issuances, or other decisions put to the voters—are among the most complex and highly-regulated types of political activity. As companies, trade associations, nonprofits, high net worth individuals, political consultants, and others face pressure to get involved in these measures, they should recognize that the regulations governing ballot measures differ meaningfully from those that apply to candidate races. While these differences can provide unique opportunities to influence the outcome of the ballot campaign, they also come with complex compliance obligations.

In this alert, we describe ballot measures; their qualification process for the ballot; their tax and campaign finance consequences; and the restrictions that apply to ballot measure committees.

Tags: ballot initiative, ballot question committee, campaign finance
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Photo of Robert Kelner Robert Kelner

Robert Kelner is the chair of Covington’s nationally recognized Election and Political Law Practice Group.  He counsels clients on the full range of political law compliance matters, and defends clients in civil and criminal law enforcement investigations concerning political activity. He also leads…

Robert Kelner is the chair of Covington’s nationally recognized Election and Political Law Practice Group.  He counsels clients on the full range of political law compliance matters, and defends clients in civil and criminal law enforcement investigations concerning political activity. He also leads the firm’s prominent congressional investigations practice.

Rob’s political law compliance practice covers federal and state campaign finance, lobbying disclosure, pay to play, and government ethics laws. His expertise includes the Federal Election Campaign Act, Lobbying Disclosure Act, Ethics in Government Act, Foreign Agents Registration Act, and Foreign Corrupt Practices Act.

He is also a leading authority on the arcane rules governing political contributions and marketing activities by registered investment advisers and municipal securities dealers.

Rob’s political law clients include numerous multinational corporations, many of which are household names.  He counsels major banks, hedge funds, private equity funds, trade associations, PACs, political party committees, candidates, lobbying firms, and politically active high-net-worth individuals. He has represented the Republican National Committee, National Republican Congressional Committee, and National Republican Senatorial Committee.  He also advises Presidential political appointees on the complex vetting and confirmation process.

As a partner in the firm’s White Collar Defense & Investigations practice group, Rob regularly defends clients in congressional investigations before virtually every major congressional investigation committee.  He also defends corporations and others in investigations by the Federal Election Commission, the Public Integrity Section of the U.S. Department of Justice, federal Offices of Inspector General, and the House & Senate Ethics Committees.  He has prepared many CEOs and corporate executives for testimony before congressional investigation panels. He regularly leads the Practicing Law Institute’s training program on congressional investigations for in-house lawyers.  In addition, he is frequently retained to lead internal investigations and compliance reviews for major corporate clients concerning lobbying and campaign finance law issues.

Rob has appeared as a commentator on political law matters on The PBS News Hour, CNBC, Fox News, and NPR, and he has been quoted in the New York Times, Washington Post, Wall Street Journal, Associated Press, Legal Times, Roll Call, The Hill, Politico, USA Today, Financial Times, and other publications.

Rob is Chairman of Covington’s Professional Responsibility Committee and a General Counsel of the firm.  He also currently serves as Chairman of the District of Columbia Bar’s Legislative Practice Committee, and he previously was appointed by the President of the American Bar Association to serve on the ABA’s Standing Committee on Election Law.

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Photo of Derek Lawlor Derek Lawlor

Derek Lawlor is of counsel in the firm’s Election and Political Law Practice Group. Derek advises corporations, nonprofit organizations, and trade associations on compliance with federal and state lobbying, campaign finance, and government ethics laws.

Clients regularly rely on Derek to assist with…

Derek Lawlor is of counsel in the firm’s Election and Political Law Practice Group. Derek advises corporations, nonprofit organizations, and trade associations on compliance with federal and state lobbying, campaign finance, and government ethics laws.

Clients regularly rely on Derek to assist with their complex questions related to activities and projects that implicate all of these laws. Derek advises federal and state candidates and super PACs on campaign finance and disclosure issues. Derek also represents clients in government investigations and inquiries conducted by the Federal Election Commission, Office of Congressional Ethics, and Congressional Committees and Commissions.

Derek’s representation of clients covers the full range of important political law issues that they face, including:

Advising clients on their registration and reporting obligations under the federal Lobbying Disclosure Act, as well as state and local lobbying laws, including helping client organizations evaluate the core questions that arise in this space:

Has the organization or any of its employees triggered lobbying registration requirements?
What lobbying income, expenditures, issues, or contacts need to be disclosed on lobbying reports?
Does procurement or sales activity directed at governmental entities trigger lobbying registration in a particular jurisdiction?
What are the best practices for designing a lobbying compliance program?

Assisting corporations and trade associations with the establishment and operation of connected PACs, which frequently entails evaluating the following questions:

What steps does the organization need to take to start up and register a connected PAC?
What are the ongoing reporting requirements under the Federal Election Campaign Act (“FECA”) or state campaign finance laws?
Which employees can the organization solicit and what are the rules on conducting a solicitation campaign?
What are the limits on making contributions to federal, state, or local candidates, party committees, or other political committees?
What are the best practices for designing a PAC compliance program?

Evaluating whether a client’s proposed activities might trigger registration under the Foreign Agents Registration Act (“FARA”), and if so, advising on registration and ongoing reporting obligations;
Advising federal and state candidates, super PACs, and other political committees on compliance with FECA, FEC regulations and reporting requirements, state campaign finance laws, rules on disclaimers placed on communications, and other political law compliance topics;
Counseling individuals who are entering government service, including Senate-confirmed positions, on the various financial disclosure requirements, conflicts of interest considerations, and other ethics law issues they may face;
Helping clients establish politically active or policy-focused nonprofit organizations, and proving ongoing support related to tax and political law issues that might arise from their activities; and
Advising corporations, nonprofits, and individuals on their proposed donations to candidates, political committees, and other politically active outside groups.

Derek was a Professorial Lecturer in Law at the George Washington University Law School from 2015-2025.

Prior to receiving his law degree, Derek worked in the Office of General Counsel at the U.S. House of Representatives.

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Photo of Andrew Garrahan Andrew Garrahan

Andrew Garrahan represents and counsels clients at the intersection of law and politics. He guides them through both regulatory compliance issues and government investigations on matters including state and federal campaign finance, ethics, lobbying, and corruption, as well as in congressional investigations.

Andrew’s…

Andrew Garrahan represents and counsels clients at the intersection of law and politics. He guides them through both regulatory compliance issues and government investigations on matters including state and federal campaign finance, ethics, lobbying, and corruption, as well as in congressional investigations.

Andrew’s prior career in political fundraising gives him a unique perspective on the challenges faced by his clients, which include corporations, candidates, government officials, political and nonprofit organizations, and private individuals.

Andrew’s counseling and advisory practice includes:

guiding clients on structuring of and compliance for their state and federal lobbying and grassroots advocacy campaigns;
representing campaigns, Super PACs, corporations, trade associations, and individuals on the applicability of the Federal Election Campaign Act (FECA) and state campaign finance law;
counseling on Foreign Agents Registration Act (FARA) registration and disclosure, and its interaction with the Lobbying Disclosure Act (LDA);
helping companies comply with state and federal ethics laws, particularly on gifts and conflicts of interests, and domestic anticorruption; and
auditing corporate political law compliance practices.

Andrew’s investigations and defense work includes:

representing clients in Congressional investigations, including responding to letter requests and subpoenas;
preparing company officers and other individuals for testimony in Congressional investigative hearings;
defending clients in Department of Justice matters related to campaign finance, lobbying, ethics, and public corruption; and
representing clients before the FEC and state campaign finance, lobbying, and ethics regulators.

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Photo of Lauren Cox Lauren Cox

Lauren Cox is an associate in the firm’s Washington, DC office. She is a member of the Congressional Investigations and Election and Political Law Practice Groups where she advises companies and individuals facing high-profile congressional investigations and hearings involving significant legal and political…

Lauren Cox is an associate in the firm’s Washington, DC office. She is a member of the Congressional Investigations and Election and Political Law Practice Groups where she advises companies and individuals facing high-profile congressional investigations and hearings involving significant legal and political risks. She also assists with white collar defense matters.

Lauren maintains an active pro bono practice.

Prior to law school, Lauren served in the White House in the Office of the Vice President and United States Senate.

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