Wyss’ dark money group showered liberal groups with more than $63M

From: POLITICO Influence - Friday Feb 16,2024 11:36 pm
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By Caitlin Oprysko

Presented by

the Air Line Pilots Association, Int’l

With Daniel Lippman

PROGRAMMING NOTE: We’ll be off this Monday for Presidents’ Day but will be back in your inboxes on Tuesday. 

WHERE THE MONEY WENT: The nonprofit affiliated with billionaire megadonor Hansjörg Wyss doled out more than $63 million in grants to left-leaning groups in fiscal 2022 — including $35 million to one of the top dark money spending vehicles on the left — even as it reported a loss in revenues.

Berger Action Fund’s eight-figure contribution to the Sixteen Thirty Fund was by far its largest between April 2022 and March 2023, according to tax returns covering that period shared first with PI. But while the donation likely would still place the nonprofit among Sixteen Thirty Fund’s top funders, it reflects a broader decrease in spending by Berger Action Fund in fiscal 2022. Berger Action Fund donated $42.5 million to Sixteen Thirty Fund in fiscal 2021.

— The group, a 501(c)4 organization that is not required to report its donors, didn’t report any donations at all in fiscal 2022 — compared to nearly $279 million the previous year and around $127 million the year before that — and disclosed almost $13 million in capital gains losses, putting its revenues in the red.

— The fund’s $63 million in gifts in fiscal 2022 amounts to a 12 percent decline from the previous years, though Berger Action Fund still steered plenty of cash to liberal groups including Indivisible Project, which received $750,000, and WorkMoney Inc., which received $1.5 million, and conservation groups like the League of Conservation Voters and Western Conservation Action, which got $5 million and $300 million, respectively.

Marneé Banks, a spokesperson for Berger Action Fund, attributed the break in donations to the “natural ebb and flow of philanthropy.” Berger Action Fund still reported $263.3 million in remaining assets as of March 2023. Still, the drop in money flowing in and out of Berger Action Fund during fiscal 2022 — a period that included haggling over President Joe Biden’s landmark climate law and the midterm elections — could be another harbinger of a slowdown in enthusiasm on the left.

— Wyss, a Swiss-born businessperson whose eponymous foundation is affiliated with Berger Action Fund, has increasingly become the face of conservative attacks on dark money in politics, with right-leaning groups seeking to brand him as the “new [George] Soros.”

— Banks maintained that Berger Action Fund complies with laws barring political contributions from foreign nationals, and “prohibits its grants from being used to support or oppose political candidates or parties, or otherwise engage in electoral activities” — but the opaque nature of nonprofits’ finances makes the money hard to trace. Berger also supports Democratic legislation that would require more transparency from dark money groups, Banks noted.

— After the Sixteen Thirty Fund, Berger Action Fund’s next largest beneficiary was the Fund for a Better Future, a dark money group that supports causes like abortion rights, social justice immigration and public health, and is behind the green group Climate Power, which has supported Democratic climate priorities like the Inflation Reduction Act. Fund for a Better Future received $19.8 million from Berger Action Fund in fiscal 2022, down from $20.2 million the year prior.

Americans for Financial Reform, a progressive consumer group, and the liberal good government group Common Cause were two new recipients of Berger Action Fund’s cash in fiscal 2022, bringing in $150,000 and $50,000 respectively.

TGIF and welcome to PI. Send K Street tips and gossip: coprysko@politico.com. And be sure to follow me on X, the platform formerly known as Twitter: @caitlinoprysko.

A message from the Air Line Pilots Association, Int’l:

Raise the pilot retirement age? Raise chaos for air travelers. Congress is considering an arbitrary change to current law that would raise the mandatory retirement age for pilots from 65 to 67 to address a pilot shortage that isn’t real. It’s an ill-conceived solution to a fake problem that will lead to real consequences. With more and more people flying, now is the wrong time to complicate air travel. Learn more.

 

VALLEY TALK: “Major technology companies signed a pact Friday to voluntarily adopt ‘reasonable precautions’ to prevent artificial intelligence tools from being used to disrupt democratic elections around the world,” The Associated Press’ Matt O’Brien and Ali Swenson report.

— “Executives from Adobe, Amazon, Google, IBM, Meta, Microsoft, OpenAI and TikTok gathered at the Munich Security Conference to announce a new framework for how they respond to AI-generated deepfakes that deliberately trick voters. Twelve other companies — including Elon Musk’s X — are also signing on to the accord.”

— “‘Everybody recognizes that no one tech company, no one government, no one civil society organization is able to deal with the advent of this technology and its possible nefarious use on their own,’ said Nick Clegg, president of global affairs for Meta, the parent company of Facebook and Instagram, in an interview ahead of the summit.”

— “The accord is largely symbolic, but targets increasingly realistic AI-generated images, audio and video ‘that deceptively fake or alter the appearance, voice, or actions of political candidates, election officials, and other key stakeholders in a democratic election, or that provide false information to voters about when, where, and how they can lawfully vote.’”

— “The companies aren’t committing to ban or remove deepfakes. Instead, the accord outlines methods they will use to try to detect and label deceptive AI content when it is created or distributed on their platforms. It notes the companies will share best practices with each other and provide ‘swift and proportionate responses’ when that content starts to spread.”

IN MEMORIAM — BOB BROOKS: Bob Brooks, Arkansas’ chief deputy attorney general and a former partner at Capitol Counsel, died unexpectedly this week at the age of 61. “Bob and I were the best of friends for decades, and he was like a member of my family. My children called him Uncle Bob, and his frequent visits were a joy to all,” state Attorney General Tim Griffin said in a statement.

— Brooks began his D.C. career as chief of staff to former Arkansas Rep. Jay Dickey and former Louisiana Rep. Jim McCrery, and ran the tax practice at Alpine Group before moving over to Capitol Counsel, where he reunited with his former boss McCrery. Brooks returned to Arkansas in 2020, and joined Griffin’s office at the beginning of 2023.

— In a speech on the House floor this week, Rep. Bruce Westerman (R-Ark.) lauded Brooks’ legacy and remembered him as a “true family man” whom “many considered … a member of their family,” as well as a “dedicated [Arkansas] Razorback fan, rooting for the Hogs in every sport.”

— “Bob Brooks was special, one of those colleagues who made everyone’s life better,” Capitol Counsel founder John Raffaelli told PI. “His thoughtfulness and kindness to all his colleagues and to everyone he met made Bob the guy everyone considered their friend. We lost him because of his love of family, friends and Arkansas, a place he never stopped calling home.”

TECH LOBBY GETS TESTY WITH TAI OVER TAXES: “The Computer and Communications Industry Association, one of the tech lobby’s most powerful voices in Washington, shot back at U.S. Trade Representative Katherine Tai after her recent suggestion that some leading American tech firms don’t pay U.S. taxes — and as a result, may not expect to receive Washington’s protection from trade barriers or discriminatory practices levied by foreign nations,” our friends over at Morning Tech report.

— “U.S. technology firms pay substantial taxes in the United States, contributions made possible through access to foreign markets,” Jonathan McHale, CCIA’s vice president of digital trade, said in a Thursday statement. “Any reluctance to address barriers to that access threatens billions of dollars in taxes and R&D spending, millions of jobs, and is inconsistent with USTR's statutory mission to support U.S. export strength.”

— It’s the latest sign that the once-cozy relationship between the tech lobby and Washington’s top trade enforcer has broken down, starting with Tai’s decision last fall to abandon long-held digital trade provisions that had benefited Silicon Valley in international markets.

KEEP CALM AND CARRY ON: “Insurers are pushing back on the Biden administration’s proposal to shave Medicare Advantage payments next year amid an industrywide struggle with shrinking profits,” our Robert King and Megan Wilson report, with plans “pressing administration officials and congressional offices to pressure CMS to make changes when it finalizes the rate notice before April 1.”

— “The longer-term advocacy strategy is likely to include digital ads discouraging further cuts and organizing meetings on Capitol Hill with older Americans who like the benefits plans offer. It’s a far cry from last year’s lobbying blitz when groups such as the Better Medicare Alliance — which counts UnitedHealth Group, Humana and Aetna among its members — spent millions of dollars, including on a Super Bowl ad, to oppose lower payment rates.”

— “But the lower profile may offer an advantage, according to an insurance executive granted anonymity to speak about the advocacy. ‘It's definitely not last year’s nuclear bomb effort, but there's more underway than is probably visible,’ the executive said. One benefit to this year’s approach, the executive added, ‘is that it has created space for some calmer conversations’ that make officials more willing to listen to data-driven arguments.”

 

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Jobs Report

Amanda Perl has joined the American Society of Human Genetics as its chief executive officer. She previously was executive director of the American Thyroid Association.

Elizabeth Cholis has joined Brunswick Group as a partner based in New York. She was most recently a partner at Dentons Global Advisors and is an FTI Consulting alum.

Chris Petrikin is joining Actum as a managing director to build Actum’s entertainment and media offerings. He most recently founded and led the independent consultancy Petrikin Collective and is a Paramount Pictures Corporation, 20th Century Fox and the William Morris Agency alum.

New Joint Fundraisers

Progressive Voices for Peace (Reps. Rashida Tlaib, Summer Lee, Ilhan Omar, Ayanna Pressley, Cori Bush, Alexandria Ocasio-Cortez)

 

CONGRESS OVERDRIVE: Since day one, POLITICO has been laser-focused on Capitol Hill, serving up the juiciest Congress coverage. Now, we’re upping our game to ensure you’re up to speed and in the know on every tasty morsel and newsy nugget from inside the Capitol Dome, around the clock. Wake up, read Playbook AM, get up to speed at midday with our Playbook PM halftime report, and fuel your nightly conversations with Inside Congress in the evening. Plus, never miss a beat with buzzy, real-time updates throughout the day via our Inside Congress Live feature. Learn more and subscribe here.

 
 
New PACs

Americans First Initiative (Hybrid PAC)

A Brighter Tomorrow (Super PAC)

International Brotherhood of Electrical Workers Local No. 11 Political Action Committee (Super PAC)

MTG FOR GEORGIA LEADERSHIP COMMITTEE (Leadership PAC: Marjorie Taylor Greene)

Michigan GOP Red PAC (PAC)

Progress for Vicksburg Warren PAC (PAC)

 

DON’T MISS POLITICO’S GOVERNORS SUMMIT: Join POLITICO on Feb. 22 to dive into how Governors are wielding immense power. While Washington remains gridlocked, governors are at the center of landmark decisions in AI and tech, economic development, infrastructure, housing, reproductive health and energy. How are they setting the stage for the future of American politics, policies and priorities? How are they confronting major challenges? Explore these questions and more at the 2024 Governors Summit. REGISTER HERE.

 
 
New Lobbying REGISTRATIONS

Allegiant Travel Company: Allegiant Travel Company

American Defense International, Inc.: Florida State University

Barnes & Thornburg, LLP: Knauf Insulation, Inc.

Brownstein Hyatt Farber Schreck, LLP: Airglades International Airport

Brownstein Hyatt Farber Schreck, LLP: American Hotel & Lodging Association

Brownstein Hyatt Farber Schreck, LLP: Ducks Unlimited, Inc.

Brownstein Hyatt Farber Schreck, LLP: Ivanhoe Electric Inc.

Brownstein Hyatt Farber Schreck, LLP: Joshco Group, LLC D/B/A Veteran Benefits Guide

Brownstein Hyatt Farber Schreck, LLP: The Consolidated Mutual Water Company

Cornerstone Government Affairs, Inc.: Target Hospitality Corp.

Cornerstone Government Affairs, Inc.: Virta Health Corp. And Affiliates

Duffy&Shanley: Enpro Inc.

Fti Government Affairs: Kyivstar Jsc

Greenberg Traurig, LLP: American Petroleum Institute

Jeffrey J. Kimbell And Associates: Amgen Inc.

Jeffrey J. Kimbell And Associates: Neurotech Pharmaceuticals

Klein/Johnson Group: Atni

Klein/Johnson Group: Insp

Klein/Johnson Group: Ses Americom Inc.

Nelson Mullins Riley & Scarborough: National Lifeline Association

Pat Williams And Associates: Cumulus Media

Sandler, Travis & Rosenberg, P.A.: Sucro Sourcing L.L.C

Splitoak Strategies LLC: Advanced Care At Home (Ach) Coalition

Summit Strategies Government Affairs LLC: City Of Bakersfield

Tarplin, Downs & Young, LLC: Amazon

The Burnham Group LLC: Automation Alley

The Generation Foundation: The Generation Foundation

Thorn Run Partners: Amerihealth Caritas

Thorn Run Partners: Bridgebio Pharma, Inc.

Thorn Run Partners: City Of Chandler, Arizona

Thorn Run Partners: Corium

Thorn Run Partners: Miami-Dade County, Florida

Thorn Run Partners: Peninsula Clean Energy Authority

Thorn Run Partners: Richland County, South Carolina

Thorn Run Partners: Seekout

Tidal Basin Advisors, Inc.: Dish Network Corporation

Tidal Basin Advisors, Inc.: Kaddas Enterprises, Inc.

Troutman Pepper Strategies, LLC (Fkatroutman Sanders Public Affairs Group, LLC): United Way Of The Chattahoochee Valley

New Lobbying Terminations

Edgepoint, LLC: Gaston College

Jeffrey J. Kimbell And Associates: Horizon Therapeutics USa, Inc. (Fka Horizon Pharma USa, Inc.)

Potomac Global Advisors, LLC: Camara Nacional De La Industria Pesquera Y Aquacultura

Strategic Marketing Innovations: Plastic Omnium

A message from the Air Line Pilots Association, Int’l:

A difference of two years can lead to decades of air travel complications. Arbitrarily extending the  mandatory pilot retirement age from 65 to 67 to address a fake pilot shortage will upend union collective bargaining agreements, disrupt airline operations, increase ticket prices, create a cascading and costly training backlog for pilots and put the United States out of compliance with international standards. Learn why raising the pilot retirement age to 67 outweighs any potential benefits.

 
 

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