Citizens United held that the government cannot ban independent political spending by corporations and unions because of the speaker's identity. The decision struck down federal limits on corporate and union independent expenditures for electioneering communications, while leaving disclosure and disclaimer requirements in place. It did not authorize direct corporate contributions to candidates.
Citizens United produced a documentary criticizing then-Senator Hillary Clinton and wanted to distribute it through video on demand and advertise it during the 2008 Democratic primary season. Federal law barred corporations and unions from using general treasury funds for certain electioneering communications near elections. The case first focused on the film and ads, but after argument the Court ordered reargument on whether Austin and part of McConnell should be overruled.
May the government prohibit corporations and unions from using general treasury funds for independent political expenditures and electioneering communications based on the speaker being a corporation or union?
The First Amendment bars the government from prohibiting corporations and unions from making independent expenditures for political speech based on the speaker's corporate identity. The Court overruled Austin and partly overruled McConnell on corporate independent expenditures, but it upheld disclaimer and disclosure requirements for the film and ads.
How the justices lined up in this decision.
The ruling opened the door to much larger independent spending by corporations, unions, nonprofits, and outside groups in elections. It helped create the legal environment for super PACs after later lower-court decisions, while leaving limits on direct contributions and coordinated spending outside the holding. Voters now encounter more independently funded political advertising, and disclosure rules remain one of the main tools for identifying some sponsors.
5-4 on the independent-expenditure holding. Justice Anthony M. Kennedy wrote the opinion of the Court, joined by Chief Justice John G. Roberts, Jr. and Justices Antonin Scalia, Clarence Thomas, and Samuel A. Alito, Jr. Justice John Paul Stevens dissented in part, joined by Justices Ruth Bader Ginsburg, Stephen G. Breyer, and Sonia Sotomayor. The Court upheld the challenged disclosure and disclaimer requirements, with Justice Thomas dissenting from that part.