The legality of foreign nationals indirectly donating to ballot initiatives in the United States is nuanced. Federal law explicitly prohibits foreign nationals from making contributions or donations, directly or indirectly, in connection with any federal, state, or local election, as outlined in 52 U.S. Code § 30121. This prohibition includes contributions to candidates, political parties, and political committees. However, there is a specific loophole when it comes to ballot initiatives:

Federal Election Commission (FEC) Ruling: The FEC has previously ruled that ballot initiatives are not considered "elections" under the Federal Election Campaign Act (FECA). This means that, under federal law, foreign nationals are not explicitly banned from donating to ballot measure campaigns, although they are barred from donating to candidates or political parties. This ruling was highlighted in a case where the FEC dismissed a complaint against foreign donations to a ballot initiative campaign, indicating that such contributions do not fall under the federal prohibition on foreign contributions in elections.

State Laws: Several states have taken steps to close this federal loophole by enacting their own laws to prohibit foreign nationals from donating to ballot initiatives. For instance, Maine passed a referendum to prohibit companies owned by foreign governments from spending on ballot initiatives. However, these state-level restrictions can vary widely, and not all states have such laws in place.

Potential for Indirect Influence: There's an acknowledgment that foreign nationals might find ways to indirectly influence ballot initiatives, potentially through contributions to U.S.-based organizations like 501(c)(4) groups that do not have to disclose their donors. These organizations can then donate to ballot measure committees, although this is a gray area that has sparked debate and legislative attempts to close such loopholes.

In summary, while federal law does not directly prohibit foreign nationals from donating to ballot initiatives, the FEC's interpretation leaves room for indirect contributions. However, this is subject to state laws which might impose stricter prohibitions, and there's ongoing legislative effort to address these loopholes at both state and federal levels. Always consider consulting the most current state laws and any recent federal legislative changes for the most accurate information.