Consultant from Nippon’s lobbying firm spearheaded pro-merger letter

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Mar 27, 2024 View in browser
 
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By Daniel Lippman and Caitlin Oprysko

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FIRST IN PI — CONSULTANT FROM NIPPON’S LOBBYING FIRM SPEARHEADED PRO-MERGER LETTER: A letter by top conservative groups in favor of Japanese company Nippon Steel buying U.S. Steel did not disclose the fact that it was heavily coordinated by a policy activist who also happens to be a lobbyist for Akin Gump Strauss Hauer & Feld, the firm that is the primary lobbyist for Nippon Steel, Daniel reports.

Ryan Ellis is a policy consultant for the lobbying firm and also heads up the Center for a Free Economy, which was part of a coalition of conservative groups, including Americans for Tax Reform, Club for Growth and the Unleash Prosperity Network, that are backing the sale and urged President Joe Biden earlier this month to butt out of the review of the deal by the Committee on Foreign Investment in the U.S.

— A March 15 Axios piece by Hans Nichols that broke the news of the letter and Ellis’ role also originally left out the fact that Ellis works for Akin Gump, which represents Nippon Steel, which is disclosed on LDA forms. Nippon Steel pays Akin Gump a retainer of $30,000 a quarter and registered for the client in late December. Ellis is not one of the Akin Gump lobbyists registered to work on the account.

Mindy Kotler, director of the Asia-focused think tank Asia Policy Point, emailed Nichols two days later pointing out the connection and describing such astroturf efforts as “common for Japan.” She said that she did not receive a response from Nichols.

— After PI asked Nichols and Axios on Monday why they didn’t mention that detail, the news site updated the story and added an editor’s note disclosing the change. A spokesperson for Axios declined further comment.

— Ellis said in a brief interview that he wears several different hats, including as a tax preparer, and signed the letter in his capacity as the president of the Center for a Free Economy, a 501(c)(4) group. He said that Akin Gump didn’t have a role in organizing the letter. When pressed on who backs CFE and if it included Nippon Steel, he said he doesn’t discuss who funds the organization.

— When asked if he has worked at all on the Nippon Steel deal, he said, “I can’t say I haven’t done anything,” but added that his involvement has been limited to attending only a few Nippon Steel events that Akin Gump has held as the Japanese company introduces itself to Washington. Spokespeople for Akin Gump and Nippon Steel declined to comment.

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

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AFL-CIO TAPS NEW TOP LOBBYIST: Bill Samuel is stepping down as the top lobbyist for the labor giant AFL-CIO after more than two decades with the federation, the group announced today. He’ll be succeeded by veteran labor lawyer Jody Calemine, who will serve as director of advocacy for the 12.5 million-member group.

— Calemine was most recently a senior fellow and director of labor and employment policy at the left-leaning think tank the Century Foundation. Before that, he was general counsel and then chief of staff at the Communications Workers of America, one of the more than four dozen unions under the AFL-CIO umbrella.

— Calemine also was a top Democratic lawyer on the House Education and the Workforce Committee, where he helped pass marquee labor bills including the Lilly Ledbetter Fair Pay Act and minimum wage increases as well as the Affordable Care Act.

INSURERS PLOT NEXT STEPS ON SITE NEUTRALITY: “Insurers, unable to push through a top legislative priority in the latest spending bill, are already working on plan B — a lobbying blitz targeting lawmakers at home and in Washington,” per our Megan Wilson.

— “It’s an uphill climb and requires overcoming opposition from the powerful hospital industry and hesitation by its allies in Congress, including Senate Majority Leader Chuck Schumer. But insurers, employers, unions and consumer groups are eyeing a possible year-end package as a vehicle for a policy that could save taxpayers billions.”

— “Though there was bipartisan interest, a deal could not be reached in part because of the efforts from hospitals, which stand to lose billions of dollars over the next decade and warned members that the cuts would be devastating to care, particularly in rural communities. Proponents of the policy plan to spend the next several months countering that argument by telling Congress that the status quo has consumers paying the price.”

KOHR STEPPING DOWN: Howard Kohr, the longtime chief executive of the American Israel Public Affairs Committee, will retire at the end of the year after nearly 30 years atop the influential pro-Israel organization,” per Jewish Insider’s Gabby Deutch.

— The announcement “comes as the organization gears up to spend tens of millions of dollars on congressional races this year. That AIPAC is now playing a major, direct role in elections is a result of a massive strategic shift that Kohr and co-CEO Richard Fishman, who died in October, oversaw in recent years, moving the organization away from grassroots bipartisan lobbying and toward political spending.”

— “Kohr’s tenure at AIPAC has included several key moments in the U.S.-Israel alliance, including the completion of a 10-year funding package approved by Congress in 2016 and the decision by the Trump administration to move the U.S. Embassy from Tel Aviv to Jerusalem. In recent months, the group has lobbied Congress to pass $14.3 billion in supplemental security assistance to Israel.”

— “Kohr’s years at the helm of AIPAC also coincided with growing partisanship in Washington. AIPAC has always worked closely with both Democrats and Republicans, but building broad bipartisan consensus on legislative priorities became more difficult in recent years.”

MNUCHIN’S TANGLED TIKTOK WEB: Former Treasury Secretary Steven Mnuchin’s possible bid to buy TikTok is a “unique twist in a long-running saga that has raised new ethics alarms in Washington” given his role in trying to force the video app’s sale during the Trump administration, The Washington Post’s Tony Romm writes.

— “For Mnuchin, 61, TikTok represents a tantalizing business opportunity and a potential political quagmire. The founder of a Washington-based private equity firm, Mnuchin announced this month that he hopes to ‘put together a group’ that could purchase TikTok if Congress requires its owner, ByteDance, to divest its stake in the social network.”

— As Treasury secretary, Mnuchin “personally advised former president Donald Trump — and oversaw a national security investigation — as the administration nearly forced the sale of TikTok to companies including Microsoft, Oracle and Walmart. The role granted Mnuchin rare access to nonpublic information about the company, including highly classified material about its practices, potentially offering him a critical advantage in any future sale.”

— Mnuchin’s prospective bid has already drawn backlash from Democrats on the Hill over investments from Middle Eastern sovereign wealth funds in the private equity firm Mnuchin set up after leaving office. But he “has started laying the political groundwork for a deal,” reportedly reaching out to his friend, TikTok critic and Senate Intelligence Chair Mark Warner (D-Va.) this month.

— Meanwhile our Josh Sisco reports TikTok is facing a new threat separate from the stalled effort in Congress to force its divestiture from ByteDance: “The Federal Trade Commission has been investigating TikTok over allegedly faulty privacy and data security practices, and could decide in the coming weeks to bring a lawsuit or settlement, according to three people with direct knowledge of the matter.”

— “The commission is weighing allegations that TikTok, and its Beijing-based parent company ByteDance, deceived its users by denying that individuals in China had access to their data, and also violated a children’s privacy law, according to the people, who were granted anonymity to discuss a confidential matter.”

WYDEN WANTS MANAFORT INTEL: Sen. Ron Wyden (D-Ore.) is urging Director of National Intelligence Avril Haines to declassify intelligence detailing Paul Manafort’s ties to Russian spies, amid reports the Trump campaign could soon swoop up its embattled former campaign adviser for a new role this year, John reports in NatSec Daily.

— In a letter sent to Haines on Tuesday, Wyden wrote that redacted portions of the Senate Intelligence Committee’s report on Russian election meddling in 2016 contain critical additional information on Manafort, whom the Trump campaign is now eyeing for a campaign adviser role.

— The public sections of the report already deemed Manafort — who was indicted on tax and bank fraud felonies before being pardoned by Trump — a “grave counterintelligence threat” to the U.S. due to his ties to Kremlin intelligence assets. But Wyden argued there’s more there — and that the Trump campaign’s interest in his work justifies making it public now.

 

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Mollie Timmons is joining the American Petroleum Institute as communications manager. She previously was communications director for Rep. Morgan Griffith (R-Va.) and is a Rob Portman alum.

Scott Blake Harris, who spearheaded the development of the national spectrum strategy as a former senior spectrum official at the National Telecommunications and Information Administration, announced he’s opening up Crest Hill Advisors, Morning Tech reports. The firm will offer consulting services on tech, telecom, and energy policy and regulation.

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