Federal court strikes down Minnesota law restricting business political speech

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

Last week, the U.S. District Court ruled on a legal challenge to a Minnesota law passed in 2023. In a landmark decision, the court permanently blocked the so-called Foreign-Influenced Corporation Law, affirming core free speech rights for Minnesota businesses. As a result, the law can no longer be enforced.

This law attempted to stifle or chill political speech by businesses — entities made up of individuals who have constitutional rights. We are incredibly pleased with this outcome, as it ensures that Minnesota businesses retain their fundamental right to participate in political discourse.

The Minnesota Legislature passed and signed this law in 2023, despite its clear infringement on businesses' First Amendment rights. The court’s decision, written by Judge Tostrud, was strongly worded and decisive, reaffirming that businesses in Minnesota have the right to engage in political speech. The Minnesota Chamber is proud to have led the fight on behalf of our members and business organizations across the state on this critical issue. I would also like to thank Winthrop and Weinstine, P.A., for their guidance throughout this process.

It’s important to note two key things about this law. First, it was passed strictly along partisan lines during the 2023 legislative session—breaking with Minnesota’s long-standing tradition of bipartisan consensus on campaign finance and election laws. Historically, such provisions have been passed with broad bipartisan support to ensure fairness and prevent any single party from exerting undue influence over the election process. In this case, that tradition was ignored, leading to reckless policy decisions that ultimately resulted in the law being struck down.

This decision highlights why balanced, thoughtful legislating is essential. Rather than relying on costly and time-consuming court battles to overturn flawed policies, the Legislature should pass fair and inclusive laws that respect the rights of all stakeholders. As we move into the 2025 legislative session, we hope to see a return to a more balanced approach—one where all voices are heard, constructive debate is encouraged, and laws are passed with broad support for the benefit of both businesses and communities across Minnesota.

Recently, I had the opportunity to speak with one of our Chamber members who strongly supported our challenge to this law. Carlos Seoane, CEO of Deeloh Technologies, shared his thoughts on the decision:

"As a small business owner, I'm pleased and relieved that the court decision today supports the ability of small businesses in our state to continue to engage in Minnesota's elections and political speech."

We couldn’t agree more. Carlos, thank you for your support, your engagement, and your leadership here in Minnesota. Most importantly, thank you for choosing to do business in our great state.

And thank you all for standing with us. We look forward to catching up with you on next week’s episode of the Minnesota Business Podcast!