How K Street sees the new year playing out

Presented by Walmart: Delivered daily, Influence gives you a comprehensive rundown and analysis of all lobby hires and news on K Street.
Jan 09, 2024 View in browser
 
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By Caitlin Oprysko

Presented by Walmart

With Daniel Lippman

HOW K STREET SEES THE NEW YEAR: Congress returns to town this week with a lot to do and little time to do it, along with the added pressure of November’s elections threatening to turn even the simplest legislative goals into a slog, but there are some issues that K Street is bullish on, according to memos lobbyists have pushed out to clients in recent days.

— “Congress’ ongoing and unresolved funding challenges continue to result in unpredictability and uncertainty for stakeholders and advocates,” Faegre Drinker’s Ryan Shay writes in a breakdown of the deadlines to know for the beginning of the year. The most important are the staggered deadlines of Jan. 19 and Feb. 2 by which Congress needs to pass either a stopgap spending bill or full-year packages to fund USDA, the Energy Department, HUD, DOT, the VA and FDA; and the Commerce Department, DOJ, HHS, the Education Department, Interior, DOL, the State Department, EPA and Treasury, respectively.

— Another key deadline is April 30. Under last year’s debt ceiling deal, if lawmakers haven’t passed a full-year spending package by then, the deal will trigger a 1 percent spending cut across the board, which “will potentially have a major impact on the operations of defense and nondefense federal agencies that rely on annual appropriations,” Shay writes — and either way, the holdover of last year’s spending fights “could also present major challenges and disruptions to the regular annual appropriations process” for fiscal year 2025.

— In its 2024 preview for clients, Joe Bushong, Dena Baron Smith and Kelly Hitchcock of Invariant add that the delay into the new year of even a topline spending agreement — which lawmakers reached over the weekend — puts appropriators under a “time crunch that significantly increases the chances of the first government shutdown since 2019.” And that’s before factoring in talks on a deal to link Ukraine and Israel aid and immigration reforms to one of the spending bills.

Hogan Lovells Democratic lobbyists Ivan Zapien, Tim Bergreen and Ches Garrison also warn that a brief government shutdown is possible in the coming weeks, though they predict lawmakers will ultimately get funding over the finish line in a memo they sent to clients this morning.

— The Hogan Lovells crew also sounds optimistic about a deal to extend certain business tax breaks from the 2017 GOP tax bill in exchange for an enhanced Child Tax Credit, writing that “while the politics will be tricky and likely influenced by the spending fight, we think there is real smoke behind the reports of a bipartisan deal.”

— And Invariant’s health care lobbyists are eying the first funding deadline this month as the potential vehicle for several health care extenders and riders like PBM reform, but “it is unlikely that controversial policies will ride on the first deadline,” Katie Wise and Evan Smith write. Invariant’s team is also expecting FAA and Foreign Intelligence Surveillance Act reauthorizations early this year, despite standoffs surrounding both bills at the end of 2023.

— A less likely action item this year is artificial intelligence in Zapien, Bergreen and Garrison’s view, though a continued focus on AI could finally help pave the way for federal data privacy legislation.

— “The patchwork of new state laws is putting more strain on businesses to comply with various standards, concerns which are articulated loudly and often to lawmakers,” they write, and “if Congress falls short of a comprehensive AI bill this year, it might see a privacy bill as a fallback. All that is to say that we would be surprised but not shocked if a privacy deal is reached this congress (potentially during the lame duck).”

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

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CARNEGIE MELLON TOOK SEVEN FIGURE DONATION FROM CONTROVERSIAL QATARI: A foundation run by a controversial former Qatari prime minister who has faced accusations of financing terrorism and fueling antisemitism donated more than a million dollars to Carnegie Mellon University to fund a computer science center, according to newly revealed documents, Daniel reports.

— Since 2018, the Jassim and Hamad Bin Jassim Charitable Foundation — co-founded by former Qatari Prime Minister Hamad bin Jassim Al Thani — has contributed at least $1.2 million to the Pittsburgh university to fund the Hamad bin Jassim Center for K-12 Computer Science Education on a Carnegie Mellon satellite campus in Qatar. Conservative watchdog group Americans for Public Trust tipped PI off to the documents, which were received via a Pennsylvania public records request.

— Al Thani, his foundation and several other prominent Qataris and entities were sued in 2021 in London for allegedly funneling money to al-Qaeda affiliate al-Nusra Front in Syria; representatives for Al Thani called the allegations “completely baseless” and the Qatari defendants all issued “categorical denials,” according to The Times of London.

— British courts declared that the Qataris had diplomatic immunity so the case did not move forward, leading the plaintiffs in the case, nine Syrian refugees, to go to the European Court of Human Rights to request that the court overturn the U.K. ruling. Al Thani appeared to concede some Qatari government money may have made its way to al-Nusra in an interview with Qatari television in 2017, although he said at the time that “I don’t know about this issue."

— He also made an antisemitic remark when he told a Kuwaiti newspaper, in an 2022 interview that the Middle East Media Research Institute translated, “Imagine oil [was sold] by some Jews … what would be the price of a barrel of oil? It would be the most expensive thing in the world.”

— “The foundation normally does not comment to press futile allegations,” Al Thani’s foundation told PI in an email. “However [please] rest assured that the foundation takes its legal and compliance obligations seriously and applies rigorous standards in this respect.”

— Qatar’s influence in the U.S. has drawn an increasing amount of attention in Washington, with the Justice Department adding new allegations that Sen. Bob Menendez (D-N.J.) took bribes in exchange for helping Qatar. (Menendez denied the allegations forcefully on the Senate floor today.) DOJ also hit two Trump-aligned Republican operatives with charges for seeking to cover up influence activities on Qatar’s behalf.

— Questions about the money that Middle Eastern governments provide American universities also recently surfaced during a December congressional hearing on antisemitism that helped lead to the ouster of two Ivy league presidents.

— In all, Carnegie Mellon has received $893 million from the Qatari government or Qatari entities in contracts or gifts since 2004, according to data from the Department of Education. Spokespeople for Carnegie Mellon did not respond to requests for comment.

CRYPTO’S NEW DARK MONEY PUSH: “A new mysterious nonprofit group backed by the crypto industry has set up a mailing address about 100 miles away from Washington, D.C., and is making moves to exert power in the nation’s capital,” CNBC’s Brian Schwartz reports.

— “The Cedar Innovation Foundation, a 501(c)(4) that was incorporated in Delaware in April, has launched advertisements against at least one powerful lawmaker who’s up for reelection, and quietly hired a group of strategists to fight on its behalf, according to records uncovered by CNBC.”

— “It’s part of a broader effort by the crypto industry to influence Congress ahead of the 2024 elections and as a variety of crypto-related bills begin to weave their way through Washington.”

— “The Cedar Innovation Foundation doesn’t publicly disclose its donors or say on its website who runs the organization or where it’s located,” but the group “is being heavily funded by crypto industry players, with Coinbase likely to write a check for the group by the end of the year, according to people familiar with the matter who asked not to be named because discussions about financing were private.”

— The nonprofit last year hired lobbyists at Mindset Advocacy, and “has been actively advertising on Facebook and Instagram, according to Meta’s ad archive. The nonprofit has spent just over $27,000 on ads on the two Meta platforms, including spots demanding voters call Senate Banking Committee Chairman Sherrod Brown, D-Ohio, to encourage him to take on SEC Chair Gary Gensler, a crypto skeptic. The organization has also targeted industry critics Sens. Elizabeth Warren, D-Mass, and Roger Marshall, R-Kan.”

WHAT’S GOING ON AT THE REALTORS LOBBY?: National Association of Realtors President Tracy Kasper has resigned after receiving a blackmail threat,” our Katy O’Donnell reports. “Kasper, who has led the powerful lobbying organization since August, ‘recently received a threat to disclose a past personal, non-financial matter unless she compromised her position at NAR,’ according to an NAR statement.”

— “NAR President-elect Kevin Sears will step into the role immediately. Kasper reported the threat to law enforcement but ‘felt that, in the circumstances, it was best for the organization that she step down,’ the group said, adding that its ‘leadership team … is taking results to protect the integrity of the organization.’”

— “Kasper only took over the position in August after former NAR president Kenny Purcell resigned in the wake of The New York Times reporting on allegations that he had sexually harassed multiple women at the association,” and has already had to steer the trade group through a landmark jury verdict ordering NAR and brokerages to pay $1.8 billion in damages in an antitrust case.

IN OTHER REAL ESTATE NEWS: Rental pricing software company RealPage has hired its first federal lobbyists as it faces accusations of colluding with landlords in a scheme to inflate rental prices. The Justice Department’s antitrust division opened an investigation into the allegations in 2022, and RealPage faces a class action antitrust lawsuit in Tennessee. In November, D.C.’s attorney general filed a lawsuit against the company and several of the city’s largest landlords over an alleged price-fixing scheme.

— Former House GOP leadership aide Casey Higgins and former Obama White House and Senate Judiciary staffer Ed Pagano of Akin Gump Strauss Hauer & Feld will lobby on housing and algorithm issues for the company, according to a disclosure filing.

 

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Jobs Report

Amy Rutkin is joining with the firms Kasirer and NVG in partnership with her new consultancy practice, Rutkin Strategies. She is retiring this week from her longtime role as chief of staff to Rep. Jerry Nadler (D-N.Y.) and staff director on the House Judiciary Committee.

James Davis is joining Rich Feuer Anderson as an assistant vice president. He previously was a research assistant for the House Budget Committee.

Jake Abbott is joining Climate Power as policy adviser on the political team. He previously was communications director for the Senate Environment and Public Works Committee Democrats.

Riley Burr has joined Career Education Colleges and Universities as director of policy and research. She was previously a research assistant at the American Institutes for Research.

Kemba Walden is joining the Paladin Global Institute at venture capital firm Paladin Capital Group as president. Walden was most recently the Biden administration’s acting national cyber director.

— The Consumer Brands Association promoted Tom Madrecki to vice president of campaigns and special projects, Ashley Slebonick to manager of marketing and Lauren Janes to policy manager of packaging sustainability.

Cristóbal Alex has been named a partner in Tusk Strategies’ D.C. office and Shontell Smith has been named a partner in the firm’s New York office.

Elizabeth Fawcett has been promoted to associate vice president at Raffetto Herman Strategic Communications.

American Waterways Operators President and CEO Jennifer Carpenter will be the next president of the American Maritime Partnership.

Politexts has added Ben Vaigneur as business development director and Sami Klakulak as client relationship manager. Vaigneur was previously a sales manager at Rendever and Klakulak was previously a policy adviser in the Arizona House of Representatives.

Lauren Limke is now government relations manager at Citizens for Responsible Energy Solutions. She most recently was legislative assistant for the House Natural Resources Committee.

American Bridge is adding Caroline Closson as director of campaign programming and Alice Visocchi as political director. Closson previously was director of the Maryland Senate Democrats Caucus and is a DLCC alum. Visocchi is political director of The American Independent and a DCCC and Elizabeth Bennett-Parker alum.

Matthew Jackson is now assistant director of federal relations for the University of Kentucky. He previously was legislative assistant for Rep. Andy Barr (R-Ky.)

Mitch Chaney is now a managing director at Innsena. She previously was the outreach and coordination lead at HHS’ Office of the National Coordinator for Health Information Technology.

 

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New Joint Fundraisers

Kunce Missouri Victory Fund (Lucas Kunce for Missouri, Missouri Democratic State Committee (Federal))

Take Back NY-3 (Sen. Kristen Gillibrand, Suozzi for Congress)

New PACs

AMERICA LEADS ACTION INC. (Super PAC)

In This Together PAC (Hybrid PAC)

Meaningful Action Towards Tomorrow PAC - MATT PAC (Leadership PAC: Matt Gunderson)

NEEL-SCHAFFER, INC. POLITICAL ACTION COMMITTEE (NEEL-SCHAFFER PAC) (PAC)

THEVAN COMMITTEE (Super PAC)

VIRGINIA ACTION PAC (Super PAC)

 

Tune in on Wednesday, Jan. 10, as POLITICO explores Taiwan's upcoming presidential election. Hear from our panel on the potential outcomes to the race and the profound implications for U.S.-China relations depending on who wins. REGISTER HERE.

 
 
New Lobbying REGISTRATIONS

Active Policy Solutions, LLC: The Origins Program

Actum I, LLC: Global Witness Inc.

Akin Gump Strauss Hauer & Feld: Realpage, Inc.

Akin Gump Strauss Hauer & Feld: R.T. Vanderbilt Holding Company, Inc.

Ballard Partners: Genmab US, Inc.

Ballard Partners: Jacobs Engineering Group Inc.

Ballard Partners: Vorex USa, LLC

Brody Group L.L.C. Public Affairs: Archer Aviation Inc.

Emc Strategy Group, LLC: City Of Lytle

Fgs Global (US) LLC (Fka Fgh Holdings LLC): International Fresh Produce Association

Ice Miller LLP: Elevated Modular Systems, LLC

Kaplan Kirsch & Rockwell LLP: Central West Virginia Regional Airport Authority

Live Oak Strategies: R2C, Inc.

Mission Government Relations (Formerly Known As Muroff Law Firm, LLC): Inglis

O'Brien, Gentry & Scott, LLC: Darkhive

O'Brien, Gentry & Scott, LLC: Tactical Lighting Systems

O'Brien, Gentry & Scott, LLC: Tekniam

Pioneer Public Affairs: Open Society Policy Center

Republic Consulting, LLC: Alare Technologies

Republic Consulting, LLC: Kagwerks

Rich Feuer Anderson: Alliance For Business Partnerships

The Burnham Group LLC: Siena Heights University

The Livingston Group, LLC: Parry Labs

The Normandy Group, LLC: Arapahoe County Public Airport Authority

Thompson Coburn LLP: Ascend Learning, LLC

Thompson Coburn LLP: Church & Dwight Co., Inc

Venture Government Strategies, LLC (Fka Hobart Hallaway & Quayle Ventures, LLC): National Thoroughbred Racing Association

New Lobbying Terminations

Active Policy Solutions, LLC: Tng Consulting

Bose Public Affairs Group: Council For Economic Education

Covington & Burling LLP: Inversiones De Generacion Electrica, S.A. (Ingelsa)

Covington & Burling LLP: Northrop Grumman

Eb Consulting: Francis Energy

Nicherapport LLC: Nuclear Innovation Alliance

Olsson, Frank, Weeda, Terman & Matz, Pc: Agromovil

Peter Damon Group LLC: State Federal Strategies On Behalf Of Strata Clean Energy

Phoenix Global Organization Incorporated: Wavmafia Inc.

Phoenix Global Organization Incorporated: Wavmafia Inc.

Strategies 360: Alternative Ballistics, Inc.

Strategies 360: City Of San Jacinto, California

Strategies 360: Cordova Contracting And Development LLC

Strategies 360: Neptune Aviation Services

Strategies 360: Resources Legacy Fund

Tusk Strategies, LLC: Mstzo, LLC

Watkins & Eager Pllc: Zynerba Pharmaceuticals, Inc.

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