Hawaii’s business community is no stranger to complex policy issues. As new laws take shape, there can be different perspectives on both the substance of an issue and the best way to address it. Act 11 is one example.

 

Passed by the Hawaii Legislature and signed into law in May 2026, Act 11 clarifies that corporations and other entities created under Hawaii law do not have the power to spend money or contribute anything of value to influence elections or ballot measures. The law applies to a range of entities, including corporations, nonprofit corporations, limited liability companies and certain associations. It is scheduled to take effect on July 1, 2027.

 

The law has prompted legal challenges over whether its restrictions on political activity are consistent with protections under the First Amendment. An earlier federal lawsuit filed by the Grassroot Institute of Hawaii argues that Act 11 restricts speech and association rights and asks the court to prevent the law from being enforced.

 

The U.S. Chamber of Commerce has also announced plans to challenge Act 11 in federal court. The U.S. Chamber argues that the law restricts certain political communications and activity that it believes are protected by the First Amendment. The U.S. Chamber has said its planned communications would include limited efforts to discuss free enterprise and, in future election cycles, certain candidates or issues.

 

 

That decision reflects our role as an independent, statewide business organization. We value our membership in the U.S. Chamber of Commerce and our relationships with chambers and business organizations throughout Hawaii. At the same time, each organization is independent and has the responsibility to determine its own policy positions and advocacy strategies.

 

Our decision not to participate in the litigation should not be interpreted as a position on the merits of the legal claims being raised. Because these matters are before the courts, we will respect the legal process and will not speculate about the outcome of the litigation.

 

 

Through the Blueprint’s focus areas, including economic action, small business, agriculture, maritime, military and defense, and travel and tourism, we engage directly with policymakers, bring the perspective of businesses to the policy process and work constructively toward solutions that strengthen Hawaii’s economic competitiveness and ability to do business.