Federal lawsuit challenges Montana corporate spending ban I-194

Voters and municipal leaders across Montana, New York, and Iowa are navigating post-election legal and fiscal shifts this week as 5 organizations filed a federal lawsuit to block Montana's voter-approved Initiative 194 before Jan. 1, Troy Mayor Carmella Mantello opened talks for a larger share of Rensselaer County's $131.873 million sales tax revenue, and Democrat Eric Armstrong won Iowa House District 20 despite suspending his campaign on Sept. 7.

Five Organizations Challenge Montana Corporate Political Spending Measure I-194

On the same day Montana voters approved Ballot Initiative 194 (I-194) with broad support, five organizations — including the Frontier Institute and the Montana Republican Party — filed a federal lawsuit seeking to block the measure before it takes effect on Jan. 1, as reported by The Press. I-194 restricts political spending by corporations, nonprofits, and other organizations and strips certain corporate privileges from entities that violate its terms.

Frontier Institute President and CEO Kendall Cotton argued that the initiative violates the First Amendment and threatens organizations with penalties for ordinary speech regarding local property tax levies or ballot proposals. University of Montana School of Journalism Director Lee Banville noted that the federal challenge pits the will of Montana voters against the U.S. Supreme Court's Citizens United decision protecting independent corporate political expenditures, while I-194 supporter Jeff Mangan argued in a September column that businesses could still educate the public without using corporate funds to campaign on ballot measures.

Troy Mayor Carmella Mantello Seeks Higher Share of Rensselaer County Sales Tax

In New York, Troy Mayor Carmella Mantello is pushing to renegotiate the city's decade-old sales tax distribution formula with Rensselaer County before the current agreement, last renewed in 2021, expires on Feb. 28, according to Hoodline. Under the existing rates in place since at least 2015, Troy waives its right to levy a separate city sales tax and receives 19.65% of the first $80 million in annual county sales tax collections plus 9% of revenue collected above that threshold.

Mantello noted that a 1-percentage-point increase to the 9% back-end rate could generate $200,000 to $300,000 in additional revenue for Troy as county collections have grown from $89 million in 2018 to $100 million, $122 million in 2022, $124.856 million in 2023, $125.251 million in 2024, and $131.873 million in 2025 — a 5.29% increase — with 2026 collections again on pace to exceed $130 million. Troy received $19.79 million in sales tax receipts in 2024 and estimates $22 million in 2026. Mantello has held initial talks with County Executive Steven McLaughlin, whose spokesperson Rich Crist said the county expects input in the coming days, while Democratic county legislators Mark Fleming, Jessica Ashley, and Gary Galuski as well as Troy City Council President Susan Steele and Councilmember Noreen McKee backed updating the formula ahead of McLaughlin's 2027 budget cycle.

Eric Armstrong Wins Western Iowa House District 20 After Suspending Campaign

In western Iowa, former railroad executive Eric Armstrong won House District 20 — covering parts of Council Bluffs and Carter Lake along the Omaha, Nebraska border — even though he had suspended his campaign on Sept. 7 to address personal health issues, as reported by KCBS Radio. Armstrong captured 55% of the vote among more than 8,000 voters, defeating Republican Pottawattamie County Supervisor Keith Jones by 865 votes and stated on Thursday that he will carry District 20's message to the Capitol in January. Armstrong succeeds Democratic state Rep. Josh Turek, who defeated Republican Ashley Hinson to win the U.S. Senate seat vacated by retiring Republican Sen. Joni Ernst, who took 55% in Pottawattamie County in 2020 before Donald Trump won 59% there in 2024, while Democrat Rob Sand won the Iowa governorship.