Lobbyists’ frustration with BIF uncertainty spills out into the open

From: POLITICO Influence - Thursday Sep 30,2021 09:56 pm
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By Caitlin Oprysko

Presented by

HCA Healthcare

With Daniel Lippman

HEADS OF LOBBYING GROUPS GET TESTY ON BIF: The heads of three major trade associations pushing hard for the House to move forward with a vote in the bipartisan infrastructure bill today betrayed their frustration with progressive lawmakers — as well as Republican members the groups are typically more aligned with — threatening to doom the legislation’s prospects.

— “If this vote today was occurring on the merits of the bill, the outcome wouldn’t be in doubt,” Neil Bradley, the U.S. Chamber of Commerce ’s top lobbyist, said on a call with reporters this morning. Bradley, who argued that were it not for Democrats linking the bill to their $3.5 trillion social spending and climate package, maintained that in a less partisan climate the infrastructure package could have sailed through the House with a supermajority. “We should have already passed this bill,” he said. “Frankly, prior Congresses should have passed this bill years ago.”

— “That’s why it boggles the mind that the progressives in the House have decided to take a very popular bill hostage and the Republican leadership has decided to not rescue that very popular hostage when they easily could,” added Michael Johnson, who leads the National Stone, Sand and Gravel Association . In his trade association’s meeting with lawmakers, several conveyed that they are “trapped between a rock and a hard place,” Johnson said, asking reporters to "pardon the pun.”

Chris Spear, the president and chief executive of the American Trucking Associations , accused lawmakers of thinking of their political futures rather than the good of the country, warning that members of the trucking industry “expect them to put America first before their own jobs.” Raising his voice some, Spear called the current state of affairs on the Hill “inexcusable.” If the infrastructure bill “goes down today, it is an embarrassment,” he continued. “Every one of them, Republicans and Democrats, should be ashamed of themselves.” Asked about a backup plan should surface transportation authorizations lapse tonight at midnight, Spear sounded exasperated. “We’re tired of Plan B,” he said. “We’ve been running on Plan B for five years. It’s time for Plan A.”

Good afternoon and welcome to PI. Send lobbying tips and gripes about the stalemate over the infrastructure bill: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

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ANNALS OF CAMPAIGN FINANCE: Members of Congress over the past two years used leadership PACs as “slush funds” to underwrite lavish lifestyles — including millions of dollars spent on stays at luxury resorts, sporting events, concerts and pricey meals at upscale restaurants — according to a new report out today . The report, from campaign finance watchdogs IssueOne and Campaign Legal Center, examined the reported spending patterns of the 92 percent of members of the prior Congress who have leadership PACs, which are subject to less stringent regulations and, unlike typical campaign committees, have no prohibition against putting donors’ money toward personal use, allowing candidates to blur the line between legitimate fundraising and personal spending.

— The watchdogs’ analysis found that from January 2019 to December 2020, 120 members of the 116th Congress spent less than half of their leadership PAC expenditures on politics, while around 40 spent less than a quarter through their leadership PACs on politics. By contrast, the report says, the typical member’s leadership PAC spent 70 percent on politics.

— The groups also “identified several leadership PAC expenditures that would likely have been illegal had lawmakers used their campaign funds to cover the costs, including expenditures at clothing stores and dues payments at gyms and social clubs,” while urging lawmakers to pass legislation making clear that the personal use prohibition applies to leadership PACs, too.

— Lawmakers’ spending gives “the impression that some politicians are simply raising money at one posh location to pay for the next fundraiser at the next fancy destination — creating an endless fundraising cycle at luxurious restaurants and resorts, much of which is paid for by special interest money, with no cost to lawmakers’ own pocketbooks,” the report says. It highlights eight lawmakers — four Democrats and four Republicans — who spent well over half of their leadership PACs’ money on things other than politics.

— One of those lawmakers was Sen. Rand Paul (R-Ky.), whose leadership PAC put just 12 percent of its total expenditures toward political purposes — the smallest percentage of any senator who did not retire in 2020. The committee dropped $23,000 on airfare and $18,000 on Uber rides, spent $14,000 on stays at luxury resorts and doled out $2,300 for expenses associated with golf courses and country clubs.

— A spokesman for Paul’s campaign said in an email to PI that the aim of the senator’s leadership PAC, RANDPAC , “is to support candidates Sen. Paul likes for office and promote the issues that he cares about that make him a different kind of Republican.” The spokesperson contended that RANDPAC’s next FEC filings will show the committee has directed hundreds of thousands to aid political candidates this year and added: “Fundraising and political travel have costs. Dr. Paul prides himself on never traveling at taxpayer expense, and his trips and travel and events all were incurred for political travel or helped raise funds for RANDPAC.”

— That justification is unlikely to sway the report’s authors. “Leadership PACs represent the worst of pay-to-play political giving,” IssueOne founder and CEO Nick Penniman said in a statement. Adav Noti , senior director for trial litigation and chief of staff at Campaign Legal Center, argued that abusing leadership PACs heightens the risk for corruption. “It raises concerns that wealthy special interests, expecting favors in return, are aiding what is essentially a slush fund that allows an elected official to live a lavish lifestyle,” Noti said.

DEMS START SMELLING THE COFFEE ON DRUG PRICING: “Top congressional Democrats are acknowledging for the first time that they’ll have to scale back their drug pricing plans to win centrist votes for their giant social spending package,” POLITICO’s Alice Miranda Ollstein and Megan Wilson report. “Leadership may drop efforts to have the government directly negotiate the prices for medicines in private insurance plans and make fewer drugs subject to negotiations in Medicare, among the changes under consideration.”

— It amounts to something of a coup for the drug industry “after spending more than $171 million lobbying in the first half of this year, including fighting House leadership's set of proposed price controls. But a more industry-friendly outcome could slash hundreds of billions of dollars in projected savings from the Democrats’ social spending bill and antagonize progressives who promised they'd enact tough new measures to reel in pharmaceutical costs.”

— K Street sources “said the industry is still intent on killing an escalating excise tax Democrats want to levy on drug companies that refuse to negotiate with the government — a tax that would increase up to 95 percent depending on how long a company doesn't comply.”

 

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TRUMP SUPER PAC SEVERS TIES WITH LEWANDOWSKI: POLITICO’s Alex Isenstadt reports that “Corey Lewandowski, one of Donald Trump’s longest-serving, highest-profile advisers, has been exiled from the former president’s orbit following allegations, reported earlier Wednesday by POLITICO, that he made unwanted sexual advances toward a major Trump donor.”

— Lewandowski's roles advising Trump included overseeing the principal pro-Trump super PAC, Make America Great Again Action. But Taylor Budowich, a Trump spokesperson, announced on Twitter that Lewandowski was being removed from that job.” Pam Bondi, the former Florida attorney general and a partner at Ballard Partners, will take charge of the super PAC after Lewandowski’s ouster.

—Earlier in the day, Alex had “detailed allegations that Lewandowski had pursued a female donor, Trashelle Odom, during a Sunday evening charity event in Las Vegas. Odom accused Lewandowski of touching her repeatedly, including on her leg and buttocks, talking about his genitalia and sexual performance, and following her throughout the hotel.”

— Several more Republican politicians followed Trump world’s lead this morning, with South Dakota Gov. Kristi Noem , whom Lewandowski informally advised and who is a potential 2024 presidential candidate, as well as a Nebraska gubernatorial candidate, cutting ties with Lewandowski.

AMERICAN ITALIAN FOOD LOBBY TAPS NEW CO-CHAIR: Lucy Calautti has been tapped to co-chair the American Italian Food Coalition, an alliance that represents 450 Italian companies and manufacturers seeking to sell their products in the U.S. Susan Molinari, a former GOP congresswoman who previously led Google's public policy shops across the Americas, serves as the group’s other co-chair. Calautti is a Byron Dorgan and MLB government affairs alum and runs Dakota Strategies, where she lobbies for the Children’s Hospital Association and represents the Baltimore Orioles. Molinari’s previous co-chair, former Rep. Lou Barletta (R-Pa.), is now running for governor in Pennsylvania.

IN THE ROOM (NOT THE ZOOM) WHERE IT HAPPENED: The DNC’s first indoor, in-person fundraiser in nearly two years Wednesday evening brought in more than $100,000 from the downtown community, according to a person familiar with the matter. The event served as a launch for the party’s business community, PAC and downtown engagement program.

— Spotted at the event, which took place on the rooftop of Brownstein Hyatt Farber Schreck , according to PI’s tipster: DNC Chair Jaime Harrison, DNC Executive Director Sam Cornale, Biden pollster John Anzalone, DNC Treasurer Virginia McGregor, David Reid, Norm Brownstein, Al Mottur, Nadeam Elshami, LaKeitha Anderson, Mimi Burke and Daniel Joseph of Brownstein Hyatt, David Jones and Lyndon Boozer of Capitol Counsel, J.R. Clark of Squire Patton Boggs, Clay Middleton of Mercury Public Affairs, Clayton Cox of McGuireWoods Consulting, Ryan Guthrie of Chipotle, Andrew Okuyiga of Amazon, Irene Bueno of NVG, Gerry Harrington of Capitol City Group and others.

— Per the tipster, Harrison and Cornale told K Streeters that the committee is in the best position it has ever been at this point in the cycle, and is working with House and Senate Democrats’ campaign arms as well as the Democratic Governors Association to ensure victory up and down the ticket next fall.

 

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Jobs Report

Damien LaVera has joined Marathon Strategies as senior vice president of public affairs and communications. He most recently served as the communications director for New York State United Teachers and is an alum of the DNC and the Obama Department of Energy.

Meagan McCanna will be the first director of government affairs for the NVIDIA Corporation. She previously spent five years at Airbnb building its government affairs program.

— The National Confectioners Association has named FARIDA MOHAMEDSHAH its senior vice president of scientific and regulatory affairs. She was most recently director of food, health and nutrition at the Institute of Food Technologists.

Michelle De Mooy has joined MPA – the Association of Magazine Media as senior director of policy. She most recently ran her own consulting firm and is a Center for Democracy & Technology alum.

Nick Mizaur will be vice president for global public policy and external affairs at BlackRock in New York. He most recently was a vice president in the office of BlackRock CEO Larry Fink and previously worked at Steve Cohen's Point72 and in the Obama administration.

Mike Gallagher, CEO of Intrepidity, has been appointed senior adviser for global interactive entertainment at Access Partnership. He previously led the NTIA and the Entertainment Software Association.

Kate Karnes is joining FlexPoint Media as vice president, per Playbook. She previously was acting chief digital officer at the White House and special assistant to the president in the Trump administration.

 

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New Joint Fundraisers

None.

New PACs

Democratic Majority Leadership Coalition (PAC)
Primacy PAC (PAC)

New Lobbying Registrations

Faegre Drinker Biddle & Reath LLP: The Kempe Foundation
Federal Health Policy Strategies: Pfizer
Fgh Holdings, LLC (Formerly Known As The Glover Park Group LLC): Coalition For Urban Innovation
Invariant LLC: Lilt
Mr. Daniel Delich: Fort Bend County Economic Development Council
Mr. Thomas Marquez: Joseph Gagliano
Texas Children'S Hospital: Texas Children'S Hospital
Thegroup Dc, LLC: Cisco Systems, Inc.
Waxman Strategies: Tioga Fund

New Lobbying Terminations

Klink Campaigns, Inc: Pharmaceutical Research And Manufacturers Of America (Phrma)
Winning Strategies Washington: Phlow Corporation

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