Friday, October 6, 2023

2023 sets new high for midyear lobbying

Midyear lobbying reports at the federal level have consistently set spending records since 2019, and 2023 was no exception. Spending across industries for the first two federal lobbying quarters came in around $2.1 billion, surpassing 2022’s record by a whopping $86.6 million.

A total of 12,112 lobbyists registered with the federal government lobbied during the first half of 2023. The most lobbied piece of legislation in the first half of the year was the annual National Defense Authorization Act (NDAA) for Fiscal Year 2024 with an estimated total of 449 clients paying lobbyists to weigh in on the bill. 

The NDAA usually passes with bipartisan support. But this year, it faced scrutiny over provisions dealing with a range of subjects including Pentagon policies on abortion access, combatting Russian aggression in Ukraine, countering Chinese influence and supplying medical care to transgender troops.

The top lobbying industry for the first half of 2023 was pharmaceuticals/health products, which spent $192.7 million. The pharmaceutical industry was followed by electronic manufacturing and equipmentinsurancesecurities and investment, and air transportation

The top federal lobbying spender for the first half of 2023 was the US Chamber of Commerce, which spent around $35.9 million. Pharmaceutical Research and Manufacturers of America (PhRMA) also continued to be a big player, spending $14.5 million.

The oil and gas industry has been among the top federal lobbying spenders in the first half of each year since the US shale revolution in 2008. The oil and gas industry spent over $65 million on federal lobbying in the first six months of 2023, about $103,000 less than what was reported during the same period in 2022.    

The air transportation industry – which includes aircraft manufacturers, public and private airlines, and air freight services – had an unusually large uptick in 2023 midyear spending, setting an industry record at roughly $69 million. This record is a massive departure from previous midyear spending for the air transportation industry, which spent approximately $59 million in 2022. 

The top-spending air transportation lobbying clients at the federal level were Boeing CoFedEx CorpUnited Parcel Service and United Airlines Holdings. The increase in federal lobbying spending from these companies might be explained by the introduction of the Securing Growth and Robust Leadership in American Aviation Act, also known as the Federal Aviation Administration (FAA) Reauthorization Act of 2023.

As of midyear reports, the FAA Reauthorization Act of 2023 is the sixth most lobbied federal bill in 2023, with 211 clients spending on lobbying for or against it. The FAA Reauthorization Act included provisions to increase air traffic controller hiring targets, establish a program to support the retention of aviation professionals, prohibit the FAA from requiring mask-wearing or COVID-19 vaccines and raise the commercial airline pilot retirement age to sixty-seven.

Commercial banks also set an industry record for midyear spending in 2023 with over $34.7 million – about $4.2 million more than what was reported for the 2022 midyear. The previous midyear record was held in 2013, when commercial banks spent roughly $34.6 million in lobbying. The top three commercial bank groups that lobbied in the first half of 2023 were the American Bankers AssociationIndependent Community Bankers of America and CitiGroup Inc

The influx of lobbying from commercial banks is likely a product of the Credit Card Competition Act of 2023, a contentious bill introduced by Sen. Dick Durbin (D-Ill.). This bill targeted competition in the credit card processing industry, seeking to lower processing fees for small businesses. 

Durbin’s office released a statement saying, “American consumers are worried about inflation and rising prices, and credit card swipe fees are part of the problem. The Visa-Mastercard duopoly controls over 80 percent of the U.S. credit card network market…Market competition helps keep fees in check, but Visa and Mastercard have structured their networks to avoid competitive market pressures on their fees.” However, others believe the Credit Card Competition Act will hurt businesses and consumers.

Midyear lobbying totals also surged for anti-abortion rights groups, which set a new midyear spending record of $750,000. Susan B Anthony List and Right to Life were the top spenders, dominating spending among groups lobbying against abortion rights at the federal level. Around the time the U.S. Supreme Court’s  Dobbs v. Jackson overturning abortion rights was released in 2022, anti-abortion rights groups had spent $690,000 during the first two federal lobbying quarters. 

Pro-abortion rights groups, including Planned Parenthood and the Center for Reproductive Rights, spent $1.2 million by the 2023 midyear deadlines, down from around $1.5 million during the first six months of 2022.

Senior Researcher Dan Auble and Editorial and Investigations Manager Anna Massoglia contributed to this report. 


Originally published on October 5th, 2023, in Open Secrets.org


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The Billionaires Who Have Purchased the US Supreme Court May Soon Have Their Dreams Come True


It's time to raise some serious hell if we want to protect Social Security, Medicare, and the planet itself from these corrupt right-wing jurists. 

Republicans are “this close” — just a matter of months away — from ending Social Security, a goal they’ve worked toward ever since 1935. They’re hoping to use six Republicans on a corrupted Supreme Court to get there.

Senator Sheldon Whitehouse points out, in his book The Scheme and his YouTube series about same, that American oligarchs launched a campaign to seize control of the Supreme Court — and, thus, the American government — over 40 years ago and they’re now close to their goal of turning America back to the 1920s.

Recently we learned from ProPublica reporting that Clarence Thomas has been the featured attraction at several multi-million-dollar fundraising events put on by the Koch brothers to marshal resources that could apparently be used, in part, to bring cases before the Supreme Court. In previous years, the late Antonin Scalia often joined him at these events.

Now that the billionaires have succeeded in packing the Court with six hard-right justices who are perfectly willing to ignore federal law about ethics on federal courts and enthusiastic to dance to their benefactors’ tunes, we’re getting close to the point that David Koch envisioned in 1980 when he ran for Vice President on the Libertarian ticket.

His platform was clear, calling for the end of the EPA and other regulatory agencies, and the privatization of the Post Office, Social Security, Medicare, Medicaid, public schools, libraries, and all the nation’s roads and rivers, among other things.

Now, with two cases that the six corrupt Republicans on the Court will be hearing this fall, David could be getting his wish.

The first is Consumer Financial Protection Bureau v. Community Financial Services Association (CFPB v CFSA), which could lead to a shutdown of not just the CFPB but Social Security and Medicare as well. All three of those programs are funded on an “open ended” basis without specific annual appropriations that mention how long they may exist or exactly how much money they can or must spend.

This is called “nondiscretionary spending” because these programs were designed by Congress as a permanent part of the American governmental landscape. Their funding legislation sets up perpetual and specific funds with specific funding mechanisms — the Social Security and Medicare funds are paid for by the FICA tax, and the Federal Reserve funds the CFPB — so they won’t be political footballs when it comes time for annual appropriations.

There’s also the problem that Medicare and Social Security have no way of knowing the exact dollar amounts they’ll spend each year; they can’t predict who’s going to get sick when, or who’s going to die or become disabled. (This is true for most federal agencies, which is why this lawsuit could also shut down everything from the USDA to the FDA to the EPA.)

The plaintiffs in CFPB v CFSA argue that the provision of the Constitution that lets Congress set up agencies and fund them requires that Congress also set specific lifetimes and exact specific annual funding levels for all agencies. This is based on Article I, Section 9, Clause 7 of the Constitution, which says:

“No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.”

Nowhere, of course, does the Constitution say that agencies that don’t have specific lifetimes or specific annual budgets are outlawed. The idea is, on its face, bizarre. But the Fifth Circuit of Appeals has already ruled — in the CFPB v CFSA case which the Supreme Court will hear this fall — that that’s exactly what the Constitution says.

As legal scholar and author Ian Millhiser notes over at Vox:

“If taken seriously, moreover, this argument would invalidate most federal spending, and it would make it impossible for benefit programs like Social Security and Medicare to even exist.”

If the six Republican justices rule the way the oligarchs who support their extravagant lifestyles want, America could be a very, very different place in just a few years.

Similarly, the case of Loper Bright Enterprises v. Raimondo, could end most of the regulatory agencies that big polluters like the fossil fuel industry and the billionaires it’s made hate.

As Senators Whitehouse, Hirono, Feinstein, and Warren noted:

“This case is the product of a decades-long effort by pro-corporate interests to eviscerate the federal government's regulatory apparatus, to the detriment of the American people.”

So, how could the Supreme Court put the EPA and other regulatory agencies out of business?

It has to do with something called the Chevron deference, a policy established by the Court decades ago to protect just such agencies.

Here’s how regulatory law — using the example of the EPA and CO2 — is supposed to work (in super-simplified form):

1. Congress passes a law that says, for example, that the Environmental Protection Agency should limit the damage that pollutants in the environment cause to the planet. Congress (the Constitution’s Article I branch of government) defines the broad goal of the legislation, but the Executive Branch (Article II, which encompasses the EPA and other regulatory agencies) has the responsibility to carry it out.

2. The EPA, part of that Executive Branch and answering both to the law and the President, then convenes panels of experts. They spend a year or more doing an exhaustive, deep dive into the science, coming up with dozens or even hundreds of suggestions to limit atmospheric CO2, ranging from rules on how much emission cars can expel to drilling and refining processes that may leak CO2 or methane (which degrades into CO2), etc.

3. The experts’ suggestions are then run past a panel of rule-making bureaucrats and hired-gun rule-making experts for the EPA to decide what the standards should be. They take into consideration the current abilities of industry and the costs versus the benefits of various rules, among other things.

4. After they’ve come up with those tentative regulations, they submit them for public review and hearings. When that process is done and a consensus is achieved, they make them into official EPA rules, publish them, enforce them, and the CO2 emissions begin to drop.

This is how it worked with regard to CO2 until June of last year, a process that simply comports with common sense, as the Supreme Court ruled in 1984 when they established the Chevron deference to legitimize and defend our regulatory agencies.

That doctrine — articulated by the Supreme Court and reflecting a century of the will of Congress and presidents of both parties who signed regulatory agencies into existence — says that once a regulatory agency does its due diligence and determines reasonable rules for a substance or behavior, they then have the legal authority to regulate and the courts should defer to the agency.

Congress passes laws that empower regulatory agencies to solve problems, the agencies figure out how to do that and put the rules into place, and the solutions get enforced by the agencies. And when somebody sues to overturn the rules, if the courts determine they were arrived at through a reasonable process without corruption, those rules stand.

Then came a group of rightwing Supreme Court justices — including Neil Gorsuch — who overturned rules made by the EPA about CO2 emissions from power plants in their June, 2022 West Virginia v EPA decision, taking the first big bite out of the Chevron deference.

Their rationale was that because the legislation that created the EPA doesn’t specifically mention “regulating CO2,” the agency lacks that power. And now it has lost that power, the result of that West Virginia v EPA decision last year.

The coal-, oil-, and natural-gas industries have been popping champagne corks for over a year now, as CO2 levels continue to increase along with the temperature of our planet and the violence of our weather.

In addition to Gorsuch, the Court’s decision-makers in West Virginia v EPA included Amy Coney Barrett whose father was a lawyer for Shell Oil for decades, and John Roberts, Samuel Alito, and Brett Kavanaugh who are all on the Court in part because of support from a network funded by fossil fuel billionaires and their industry (among others) that brought that case and are now bringing Loper v Raimondo.

And, of course, there’s Clarence “on the take” Thomas, who supported the Chevron deference 15 years ago but, since being wined and dined by rightwing billionaires, in 2020 wrote:

Chevron compels judges to abdicate the judicial power without constitutional sanction. … Chevron also gives federal agencies unconstitutional power.”

Giving us a clue to how this will probably go down, all six Republicans on the Court voted to gut the EPA’s ability to regulate CO2; all 3 Democratic appointees opposed the decision.

Elena Kagan wrote that the Court:

“[D]oes not have a clue about how to address climate change...yet it appoints itself, instead of congress or the expert agency...the decision-maker on climate policy. I cannot think of many things more frightening.”

Their ruling was, essentially, that all of that research into the specifics of anticipated regulations — all those hundreds of scientists, millions of public comments, and hundreds of thousands of science-hours invested in understanding problems and coming up with workable solutions — must be done by Congress rather than administrative regulatory agencies.

As if Congress had the time and staff. As if Congress was stocked with scientific experts, a much larger budget, and had millions of hours a year for hearings. As if Republicans in the pockets of fossil fuel billionaires wouldn’t block any congressional action even if it did.

Republicans on the Supreme Court succeeded in dancing to the tune of the billionaire’s fossil fuel network in the West Virginia v EPA case, but it was narrowly focused on CO2.

In the upcoming Loper v Raimondo case they’ll hear this fall, however, the Court is explicitly preparing to expand that victory by blowing the entire Chevron deference out of the water, thus ending or severely limiting most protective government regulations in America and opening the door to court challenges to every regulatory agency established since the first decades of the 20th century.

They’re saying, essentially, that the EPA (and any other regulatory agency) can’t do all the steps listed above: instead, that detailed and time-consuming analysis of a problem, developing specific solutions, and writing specific rules has to be done, they say, by Congress itself.

A Congress where arcane rules and gerrymandering have given Republicans the ability to block pretty much any legislation their billionaire patrons pay them to block.

All of this adds to the urgency of removing Clarence Thomas, John Roberts, and Samuel Alito — corrupt members who have benefited to the tune of millions from their billionaire patrons — from the Court as soon as possible. Or at least diluting their influence.

Democrats were happy to speak out when Al Franken was accused of a tasteless joke, being photographed with his hands a half-foot above the breasts of a faux-sleeping colleague, but seem paralyzed by the naked corruption going on with this Court.

It’s time to raise some serious hell, and Dick Durbin’s Senate Judiciary Committee is the logical place to start with subpoenas of the three mentioned above to bare their corruption to the American people. If you agree, you can find Durbin’s phone numbers and addresses here and a list of the Committee’s members here.

Every day that goes by without these corrupt judges resigning or at least recusing themselves from these vital cases — because of public outrage and congressional pressure — is another day closer to the end of the functional America we’ve all grown to know and love.

And that includes Social Security, Medicare, and the other programs Republicans are gleefully expecting the Supreme Court to rule unconstitutional with these cases in the upcoming months…

Originally published on October 4th, 2023, in Common Dreams

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Welfare agency set to depose Brett Favre, but both want to conceal transcripts

by Anna Wolfe

Former NFL quarterback Brett Favre is set to give sworn testimony in the ongoing welfare fraud civil suit at the end of this month.

But both Favre and the Mississippi Department of Human Services, which is suing the famous athlete and 46 others, have asked the judge to issue a protective order allowing parties to block evidence in the case, such as deposition transcripts, from being shared with the public.

If Hinds County Circuit Court Judge Faye Peterson signs the order — to which 16 other defendants objected — Favre’s deposition transcript would be considered confidential for at least 30 days after it is completed, after statewide elections in November. After that, Favre would be able to designate deposition exhibits or portions of transcripts confidential, preventing any other parties from sharing the materials with anyone outside of their counsel, the court or potential witnesses.

MDHS has accused Favre of pushing welfare officials to fund the construction of a volleyball stadium at University of Southern Mississippi and make a seven figure investment in a pharmaceutical company he was promoting — both of which MDHS says were shams that personally benefitted Favre and others. Favre denies he had anything to do with an illegal scheme.

Since MDHS first filed the case in May of 2022, Peterson has issued several procedural orders, most significantly denying Favre’s motion to dismiss the complaint against him and denying several motions to stay the case. She also denied a motion for protective order from the University of Southern Mississippi Athletic Foundation.

“The primary purposes of the Agreed Protective Order are to prevent confidential discovery materials from being made public and used outside of this litigation, and to give parties an opportunity to make an application that confidential materials be filed under seal,” reads the Sept. 22 motion for protective order by MDHS, Favre and another defendant in the case, virtual reality company Lobaki, Inc.

Both MDHS and Favre also plan to depose former University of Southern Mississippi President Rodney Bennett on Oct. 31 in Nebraska, where Bennett recently relocated to serve as chancellor of the University of Nebraska-Lincoln after resigning from USM in 2022.

MDHS has used a text message that Bennett sent former Gov. Phil Bryant in 2020 as the basis for its claim that Favre personally committed to provide funds to build the volleyball stadium, which bolsters the argument that Favre stood to personally benefit from the diversion of MDHS funds to the project.

“I will see, for the ‘umpteenth time’ if we can get him (Favre) to stand down,” Bennett wrote to Bryant in late January of 2020. “The bottom line is he personally guaranteed the project, and on his word and handshake we proceeded. It’s time for him to pay up – it really is just that simple.” 

Neither Bennett nor Bryant are defendants in the civil case.

Favre’s legal team denies that any of the welfare funds channeled to USM helped satisfy Favre’s pledge, especially considering that the funds were transferred in 2017, while Favre signed his guarantee in 2018.

Favre said that with respect to the proposal to use MDHS block grants to fund the volleyball stadium, “The Governor was aware of the source of the funding and supported it.”

At the time Bennett sent Bryant the text about Favre, Bryant had just left office and was discussing entering a business deal with Prevacus and PreSolMD, the Favre-backed pharmaceutical startups that also received more than $2 million in stolen welfare funds.  Bryant denied involvement in either deal.

MDHS sent an email to each defendant in the civil suit to gauge their support for a protective order. The following 16 defendants objected:

  • Nancy New, her private school company New Learning Resources Inc. and her nonprofit Mississippi Community Education Center.
  • The nonprofit’s accounting firm Williams, Weiss, Hester & Co.
  • Nancy New’s sons Zach and Jess New, Jess New’s company Magnolia Strategies and the LLC they all started together, N3 Holdings.
  • Former state welfare director John Davis and his nephew Austin Smith.
  • Former welfare agency attorney William Garrig Shields.
  • Former welfare subcontractor NCC Ventures and its owner Nicholas Cronin Coughlin.
  • Former welfare subcontractor Chase Computer Services.
  • Retired football player Marcus Dupree and his organization Marcus Dupree Foundation.

These defendants said they were “hesitant to agree that materials, which [they] have never seen, can be made confidential simply with the markings of an attorney,” reads the Sept. 22 motion. The objecting defendants also argued that “‘records of public officials and former public officials’ may be marked as ‘confidential’; and that ‘some party will designate as ‘confidential’ matters which should not be confidential, and we will then have to go through an unknown length of time to obtain a court hearing in order to have the matters made public.’” The remaining 29 defendants did not respond either way.

“As noted, discovery materials are not a matter of public record and to the extent that any designated discovery materials are to be filed with the Court, if any party or non-party requests they be sealed, the Court must ultimately decide if sealing is warranted,” the motion reads.

MDHS’s original counsel in the civil suit first scheduled depositions of 13 defendants in July of 2022, and they were set to take place between August and November of last year.

But days after filing the notice, Gov. Tate Reeves and the welfare department chose to fire the attorney, former U.S. Attorney Brad Pigott, which put a halt to securing the sworn statements.

Favre’s Oct. 26 deposition, set at the Hotel Indigo in Hattiesburg near Favre’s home, will be the first in the case unless one is scheduled before then.

Originally published on October 4th, 2023, in Mississippi Today.

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