Direct lobbying in the United States are methods used by lobbyists to influence United States legislative bodies. Interest groups from many sectors spend billions of dollars on lobbying.
Three laws govern U.S. lobbying. These require that a lobbying entity must be registered, allow nonprofit organizations to lobby, require organizations to present quarterly reports about their lobbying, restricts gifts to members of Congress, and require earmarks to be disclosed in expenditure bills.
Many former federal employees – for example, members of the Federal Communications Commission (FCC) – become lobbyists and vice versa, a practice known as the revolving door.
Lobbying, a standard method used to influence or change a piece of legislation, is a common practice at all levels of legislature, including the United States Congress and local legislation. [1] [2] In the U.S., direct lobbying involves direct methods used by a lobbyist when attempting to influence a legislative body. [2] [3] It is done either through direct communication with members or employees of the legislative body, or with a government official who participates in formulating legislation. [3] During the direct lobbying process, the lobbyist introduces statistics that will inform the legislator of any recent information that might otherwise be missed, makes political threats or promises, and supplies favors. [2] [4] A common use of direct lobbying is to persuade the general public about a ballot proposal. In this case, the public is considered to be the legislator. This aspect of direct lobbying attempts to alter the legislature before it is placed on the ballot. [5] Communications regarding a ballot measure are also considered direct lobbying. [6] Direct lobbying is different from grassroots lobbying, a process that uses direct communication with the general public, who in turn, contacts and influences the government. [7] Washington, D.C. is the home to many firms that employ these strategies, with 11,140 registered lobbyists currently residing in the area. [8]
The goals of lobbyist most commonly used are: [9]
According to a meta-analysis, it was discovered that direct lobbying is used alongside grassroots lobbying. [10] There is evidence that groups are much more likely to directly lobby previous allies rather than opponents. [1] Allies are also directly lobbied if a counter lobby is brought to light. [11] The results suggest that groups lobby in ways designed obtain the most influence for their view. [10] When groups have strong ties to a legislator's district, those groups will use a combination of grassroots and direct lobbying, even if the legislator's original position does not support theirs, which may help groups expand their supportive coalitions. [10] When strong district ties are not present, groups tend to rely on direct lobbying with committee allies, because they assume that their political friends will be drawn to participate with the lobbyist view. [10]
In 2010, the total amount spent on lobbying in the U.S. was $3.50 billion. [12] The top sectors for lobbying as of 2010 are financial, insurance, real estate, with $4,405,909,610 spent on lobbying. [13] The financial, insurance, real estate sector is the largest source of campaign contributions. [14] The sector includes insurance companies, securities and investment firms, real estate interests and commercial banks. [14] During the 2008 real estate crisis, the sector spent $468.8 million on lobbying. [14]
Health is the second largest sector by spending, with $4,369,979,173 recorded in 2010. [13] An increase in spending was seen in 2009 with the legislature formation of Health bills, and health insurance laws. [15] Over 1 million per day is spent on influencing health legislature starting in 2009. [15]
The top lobbying clients from 1998–2010 are the US Chamber of Commerce with $738,825,680, American Medical Association with $243,277,500, and General Electric with $236,580,000. [13]
An array of interest groups take part in political influence, whenever an opportunity arises, such as a health care reform, election, and economic reform. [16] These groups include opposing view-points, such as support or opposition to legal abortion care, and other strongly controversial issues. [16]
Abortion policy interest groups spend significant money on lobbying. Pro-choice groups spend more on lobbying than anti-abortion groups. [17] When anti-abortion groups donate to politicians, they donate most of their funds to Republican Party representatives. [18] During the 2008 election period, pro-choice organizations spent $1.7 million on lobbying efforts and anti-abortion groups spent approximately $607,550. [18] Anti-abortion groups such as the Susan B. Anthony List contributed $1,937,124 and the National Pro-Life Alliance contributed $241,999 in the 2009–2010 fiscal year. [19] Two of the most active pro-choice groups, Planned Parenthood and NARAL Pro-Choice America, spent a total of $1,237,197 on lobbying in 2009–2010. [17]
Education centers, such as school districts, colleges, and universities are not allowed to directly lobby, however they are allowed to be represented by associated individuals in the field. [20] The education interest group does not include teacher unions. [20] Spending from the education group increases around election periods, and has been increasing in the last couple of years. [20] During the 2008 election period, education donated 82% of $54.7 million to the Democratic Party, with increases in Democratic support by the education group in the following years. [21] University of California spent $1,264,704 on lobbying, making it the top spender in the education group for the 2009–2010 fiscal year period. [20] It is followed by, Harvard University with $709,532 and Stanford University with $618,475. [20]
The oil and gas sector companies are among the groups that are the biggest spenders on lobbying, especially with the recent Deepwater Horizon oil spill putting restrictions on their ability to do offshore drilling. [22] During the 2008 elections, oil companies spent a total of $132.2 million into lobbying for law reform. [22] The three biggest spenders from the oil and gas sector group are Koch Industries ($1,931,562), Exxon Mobil Corporation ($1,337,058) and Chief Oil & Gas ($1,192,361). [23]
Interest group lobbying is split by political affiliation. [24] In 2010, the top industries spending for the Democratic Party are lawyers and law firms with $49,226,482, followed by health professionals with $22,000,497 and the retirement industry with $21,674,025. [24] The largest percentage supporters of the party are industrial unions (98% Democratic, 2% Republican), building trade unions (93% Democratic, 8% Republican), and the public sector unions (91% Democratic, 9% Republican). [24] In 2010, the top industries spending for the Republic Party are the retirement industry ($17,304,174), health professionals ($16,080,916) and investment industries ($12,151,945). [24] The largest percentage supporters of the party are business services (70% Republican, 30% Democratic), and lawyers and law firms (82% Republican, 18% Democratic). [24]
The Lobbying Disclosure Act of 1995 was passed by the U.S. Senate and signed into law by President Bill Clinton on December 15, 1995. [25] Under a revision done on January 1, 2006, the Act state that any lobbying entity must be registered with the Secretary of the Senate and the Clerk of the House of Representatives. The registration must occur within 45 days after the individual lobbyist makes a first plan to contact, or lobby, to the President, Vice President, or any highly ranked Federal official. Those that do not follow in accordance with the Disclosure Act are penalized, including fines of over $50,000 and being reported to the United States Attorney. [26]
The Public Charity Lobbying Law gives nonprofit organizations the opportunity to lobby without losing their nonprofit status with the Internal Revenue Service. Under Section 501(c)(3) of the Internal Revenue Code, nonprofit organizations are not allowed to use a "substantial" part of their spending on lobbying, with substantial spending amounting to about 5% of the organization's revenue. [27] Organizations must elect to use the Public Charity Law, and when so doing, the spending on lobbying may increase to 20% for the first $500,000 of their annual expenditures, followed by 15% for the next $500,000, up to 1 million dollars. [27] Organizations must file a Form 5768 with the IRS to monitor the expenses of the organization. Another aspect to the elected law are the spending restrictions between direct lobbying and grassroots lobbying. [27] No more than 20% can be spent on grassroots lobbying at any given time, while 100% of the lobbying expenditures can be on direct lobbying. [27]
The Honest Leadership and Open Government Act is a bill that was signed on September 15, 2007 by President George W. Bush, amending the Lobbying Disclosure Act of 1995. [25] Included in the bill are certain provisions that require a quarterly reports on lobby spending by organizations, places restrictions on gifts for Congress members and provides for mandatory disclosure of earmarks in expenditure bills. [28] This act places restrictions on the revolving door in direct lobbying. [28]
We recommend the U.S. Attorney for the District of Columbia complete efforts to develop plans for a structured approach to focus limited resources on those lobbyists that continually fail to file as required or are otherwise not in compliance.
In lobbying, the revolving door is the cycling of former federal employees into jobs as lobbyists while former K Street employees are pulled into government positions. [30] Government officials can only work certain terms in their positions, for example senators, and afterwards they form valuable connections that could help influence future law making. [30] The other form of the revolving door is pushing lobbyists into government positions, and then developing connections and returning into the lobbying world to use said connections. [30] This is a controversial issue in the political lobbying world. [30]
A U.S. Congress member has a limited amount of serving time, and has the possibility of not being re-elected, or stepping down. [31] During the 2010 elections there was an increase in Congress members leaving Capitol Hill. [31] Out of the 120 previous members, 72 have found employment. 21.8% employed at lobbying firm, while 11.5% became a lobbying client. [31] 326 revolving door lobbyists are part of the Barack Obama Administration. [32] 527 revolving door lobbyist were part of the Bush Administration, [33] compared to 358 during the Clinton Administration. [34]
Industries use lobbyists to influence their positions during legislature, certain industries seek out a specific type of lobbyist. [35] These industries seek out revolving door lobbyists that have connections with their specific industry. [35] The top industries for using revolving door lobbyists are Beer, Wine & Liquor (79.9% profiled lobbyists), Tobacco (78% profiled lobbyists), and Finance/Credit Companies (76.7% profiled lobbyists). [35]
The American corporate media lobby has been involved in the shaping of media ownership regulations since the early days of the industry. [40] In that time, they have repeatedly sought their own interests by direct lobbying, in many cases at the expense of the public interest. [41] [42]
Throughout most of its history, the FCC has been a relatively invisible part of the U.S. government, known mostly to industry stakeholders, lobbyists, and officials. [43] With the general public not knowing its practices and responsibilities, this has given a tremendous advantage to those knowledgeable of the FCC's practices and organized enough to influence them. [43] Jeff Chester, the executive director of Center for Digital Democracy, "The FCC has long been the second home to a legion of (lawyers and lobbyists) ... whose occupation is convincing the staff and commissioners to approve policies that benefit a particular company or industry." [43]
There is evidence that the FCC continues to be influenced by the corporate media lobby. [44] The strong, direct relationships that have developed over the years between regulators and corporate media lobbyists, is essential to greater influence. [45] It goes much deeper than the idea that the lobby has simply been around for a while. Members of the FCC have traditionally had strong connections to industry. As the job of an FCC commissioner or staffer is often highly technical, and specific knowledge of the dynamics of the telecommunications and media industries must be known, commissioners are often plucked out of high-paying jobs in the industry. History has shown, due to the fact that FCC Commissioners are appointed only to five-year terms, that there is a revolving door between the Commission and industry. [43]
[T]hey usually go directly to work for the media or telecommunications businesses after they leave office.
—Jeff Chester, executive director of Center for Digital Democracy [46]
FCC commissioners often become influential lobbyists after their terms expire. Many of the lobbyists that frequent the FCC's office are, "not infrequently including ex-commissioners and ex-chairs"; Chester remarked that all of the former FCC commissioners in the last thirty years moved over into the lobbying sector soon after. [47]
Politicians and businesses want the most knowledgeable and well-connected individuals working for them, which keeps the pool of potential hires quite small. The most influential lobbying strategy – access – is an advantage of the corporate media lobby. [45]
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: CS1 maint: location missing publisher (link)Lobbying is a form of advocacy, which lawfully attempts to directly influence legislators or government officials, such as regulatory agencies or judiciary. Lobbying, which usually involves direct, face-to-face contact in cooperation with support staff that may not meet directly face-to-face, is done by many types of people, associations and organized groups, including individuals on a personal level in their capacity as voters, constituents, or private citizens; it is also practiced by corporations in the private sector serving their own business interests; by non-profits and non-governmental organizations in the voluntary sector through advocacy groups to fulfil their mission such as requesting humanitarian aid or grantmaking; and by fellow legislators or government officials influencing each other through legislative affairs in the public sector.
John Vincent Weber is an American politician, lobbyist and former Republican Congressman from Minnesota.
OpenSecrets is a nonprofit organization based in Washington, D.C. that tracks and publishes data on campaign finance and lobbying, including a revolving door database which documents the individuals who have worked in both the public sector and lobbying firms and may have conflicts of interest. It was created from the 2021 merger of the Center for Responsive Politics (CRP) and the National Institute on Money in Politics (NIMP), both of which were organizations that tracked data on campaign finance in the United States and advocated for stricter regulation and disclosure of political donations.
Greenberg Traurig is a multinational law and lobbying firm founded in Miami in 1967 by Mel Greenberg, Larry J. Hoffman, and Robert H. Traurig.
In politics, regulatory capture is a form of corruption of authority that occurs when a political entity, policymaker, or regulator is co-opted to serve the commercial, ideological, or political interests of a minor constituency, such as a particular geographic area, industry, profession, or ideological group.
Jeffrey Shockey is an American lobbyist and former congressional staffer. He worked for Republican Representative Jerry Lewis until 1999. In 2011, he founded the lobbying firm of Shockey Scofield Solutions with John Scofield. In 2014, Shockey was appointed as staff director of the House Intelligence Committee under incoming Chairman Devin Nunes. In 2016, Shockey became vice president of federal legislative affairs for Boeing.
The Jerry Lewis – Lowery lobbying firm controversy stems from the relationship between Congressman Jerry Lewis (R-CA) and a lobbying firm, known as Copeland Lowery Jacquez Denton & White, where good friend and former U.S. Congressman Bill Lowery was a partner from 1993 to 2006.
Copeland Lowery Jacquez Denton & White is a California lobbying firm founded by James Copeland in 1992, which was the subject of a federal investigation into earmarks granted to its clients by Rep. Jerry Lewis. In June 2006, the firm changed its name to Innovative Federal Strategies following the resignation of the Democratic partners.
Lobbying in the United States is paid activity in which special interest groups hire well-connected professional advocates, often lawyers, to argue for specific legislation in decision-making bodies such as the United States Congress. It is often perceived negatively by journalists and the American public; critics consider it to be a form of bribery, influence peddling, and/or extortion. Lobbying is subject to complex rules which, if not followed, can lead to penalties including jail. Lobbying has been interpreted by court rulings as free speech protected by the First Amendment to the U.S. Constitution. Since the 1970s, the numbers of lobbyists and the size of lobbying budgets has grown and become the focus of criticism of American governance.
The Honest Leadership and Open Government Act of 2007 is a law of the United States federal government that amended parts of the Lobbying Disclosure Act of 1995. It strengthens public disclosure requirements concerning lobbying activity and funding, places more restrictions on gifts for members of Congress and their staff, and provides for mandatory disclosure of earmarks in expenditure bills. The bill was signed into law by President George W. Bush on September 14, 2007.
The fossil fuels lobby includes paid representatives of corporations involved in the fossil fuel industry, as well as related industries like chemicals, plastics, aviation and other transportation. Because of their wealth and the importance of energy, transport and chemical industries to local, national and international economies, these lobbies have the capacity and money to attempt to have outsized influence on governmental policy. In particular, the lobbies have been known to obstruct policy related to environmental protection, environmental health and climate action.
In politics, a revolving door can refer to two distinct phenomena.
Lobbying in the United Kingdom plays a significant role in the formation of legislation and a wide variety of commercial organisations, lobby groups "lobby" for particular policies and decisions by Parliament and other political organs at national, regional and local levels.
James F. Hirni is a lobbyist who was convicted of bribing U.S. Senate staff aides in exchange for favorable amendments to legislation. A former aide to U.S. Senator Tim Hutchinson (R-AR), he joined the lobbying firm Sonnenschein, Nath & Rosenthal, and then became a member of "Team Abramoff" at Greenberg Traurig. He went on to become a lobbyist for Wal-Mart from 2004–08, as its executive director of Republican outreach. He was fired when charges were filed concerning his activities with Abramoff.
Grassroots lobbying is lobbying with the intention of reaching the legislature and making a difference in the decision-making process. Grassroots lobbying is an approach that separates itself from direct lobbying through the act of asking the general public to contact legislators and government officials concerning the issue at hand, as opposed to conveying the message to the legislators directly. Companies, associations and citizens are increasingly partaking in grassroots lobbying as an attempt to influence a change in legislation.
Meredith Attwell Baker is the president and chief executive officer of CTIA, an industry trade group that represents the international wireless telecommunications industry. From 2009 to 2011, Baker was a member of the United States Federal Communications Commission, nominated by U.S. President Barack H. Obama. She also served in the National Telecommunications and Information Administration as a political appointee, and was subsequently named a deputy assistant secretary of the Commerce Department by President George W. Bush in February 2007.
The history of lobbying in the United States is a chronicle of the rise of paid advocacy generally by special interests seeking favor in lawmaking bodies such as the United States Congress. Lobbying has usually been understood as activity by paid professionals to try to influence key legislators and executives, which is different from the right for an individual to petition the government. It has been around since the early days of the Republic, and affects every level of government from local municipal authorities to the federal government in Washington. In the nineteenth century, lobbying was mostly conducted at the state level, but in the twentieth century, there has been a marked rise in activity, particularly at the federal level in the past thirty years. While lobbying has generally been marked by controversy, there have been numerous court rulings protecting lobbying as free speech. At the same time, the courts have made no final ruling on whether the petition clause of the US Constitution covers lobbying.
The Internet Association (IA) was an American lobbying group based in Washington, D.C., which represented companies involved in the Internet. It was founded in 2012 by Michael Beckerman and several companies, including Google, Amazon, eBay, and Facebook, and was most recently headed by president and CEO K. Dane Snowden before shutting down.
Lobbying in Germany, as in many other parliamentary democracies, plays a significant role in the development of legislation. Lobbying has existed in Germany since 1956, when the Federal Constitutional Court issued a ruling legalizing it. A mandatory lobby register was introduced in Germany effective 1 January 2022, along with a code of conduct.
Lobbying in Canada is an activity where organizations or people outside of government attempt to influence the decision making of elected politicians or government officials at the municipal, provincial or federal level.