In its 5-4 ruling, which applies equally to corporations and non-profits, the majority wrote that the First Amendment prohibits Congress from fining citizens, or associations of citizens (like corporations), for simply engaging in political speech.
But the dissenters wrote that "The court's ruling threatens to undermine the integrity of elected institutions around the country."
"It's unbelievable. The public is outraged about this kind of influence and now the Supreme Court basically says, ‘Have more, go buy more politicians,' and I think that's outrageous," Sen. Mark Begich said.
Begich wasn't the only Alaskan stunned by the decision, particularly after the recent corruption probe and efforts to reform Alaska's campaign finance laws.
"It sure as heck raises immense questions on campaign contributions both for the feds and for the state perhaps," Rep. Bob Lynn, R-Anchorage said.
"It's definitely very shocking. As an incumbent legislator coming into this situation it sounds quite bizarre that now corporations are going to have such control over our future elections," said state Rep. Scott Kawasaki, D-Fairbanks.
It isn't just politicians who are upset.
One of Alaska's largest unions, the IBEW, released this statement"
"We have supported campaign finance reform. We are not happy with the decision because it puts us in position of spending more money to defend working families."
Late Thursday the Alaska Public Offices Commission and the Attorney General's office were still reading through the ruling to find out exactly what it means for Alaska.
But already lawmakers in the state capital and nation's capital are gearing up for a big fight.
The ruling is a big win for the makers of a movie about Hillary Rodham Clinton as she ran for president.
Its makers wanted to air it during the 2008 primary campaign season, but the federal courts said it looked like a big ad and it should be regulated like one.
In the ruling the justices also struck down part of the landmark McCain-Feingold campaign finance bill that barred union and corporate-paid issue ads in the closing days of political campaigns.
Contact Megan Baldino at firstname.lastname@example.org