State AG challenging Leo probe received money from one of his nonprofits

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By Caitlin Oprysko

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With Daniel Lippman 

FIRST IN PI: A nonprofit group affiliated with Mississippi Attorney General Lynn Fitch, who signed onto a letter last year challenging the D.C. attorney general’s investigation into conservative judicial activist Leonard Leo’s network of nonprofits, had previously received a six-figure check from one of the Leo-affiliated nonprofits in question, according to tax filings.

The Concord Fund, one of the main dark money groups affiliated with Leo, donated $100,000 to the Strength And Prosperity Project Fund in the fiscal year ending June 2022, according to tax returns flagged to PI by the liberal watchdog group Accountable.US.

— Strength And Prosperity Project Fund is a 501(c)(4) group — meaning that it, like Concord Fund, is not required to disclose its donors — launched in 2019 to commemorate Fitch’s inauguration and to work on other issues including the opioid epidemic and human trafficking, according to Mississippi’s Secretary of State’s Office.

— The nonprofit was apparently involved in organizing an anti-abortion rally outside of the Supreme Court in 2021 when the court held oral arguments for Dobbs v. Jackson Women’s Health Organization, the Fitch-led case that resulted in the nationwide right to an abortion being overturned, according to social media posts.

— The group’s most recent tax returns for the fiscal year ending December 2022 list Fitch as a director for the nonprofit. That year, the nonprofit reported $20,000 in revenues, compared to almost $191,000 the year before.

— In 2023, after POLITICO reported that D.C. Attorney General Brian Schwalb was investigating whether Leo illegally profited off his network of dark money groups by way of his for-profit consultancies, Fitch and 11 of her GOP peers questioned Schwalb’s standing to conduct such a probe. The September letter, which one nonprofit expert told POLITICO was “very unusual,” “suggested that conservative AGs might come under pressure to investigate progressive-oriented nonprofits if Schwalb doesn’t back down,” our Heidi Przybyla reported last month.

— In addition to the Concord Fund donation to Fitch’s nonprofit, Heidi notes that each of the signatories on the letter to Schwalb has been a member at one point of the Republican Attorneys General Association, for which the Concord Fund is routinely a top donor.

— Fitch “is the latest in a long string of Leonard Leo allies weaponizing government power against Leo’s critics,” Accountable.US President Caroline Ciccone argued in a statement. “Perhaps the tens of thousands of dollars AG Fitch apparently accepted from a key Leo group can help explain the unusually aggressive letter she signed onto in his defense.” Fitch’s office and the Strength And Prosperity Project Fund did not respond to requests for comment.

Happy Wednesday and welcome to PI. I’ll be off for the rest of the week, but you’ll be in great hands with Hailey Fuchs filling in tomorrow and Megan Wilson pinch-hitting on Friday. Say hello and send tips (and Miami recs) to me at coprysko@politico.com, Hailey at hfuchs@politico.com and Megan at mwilson@politico.com. And be sure to follow all of us on the platform formerly known as Twitter: @caitlinoprysko, @Hailey_Fuchs and @misswilson.

 

Access New York bill updates and Congressional activity in areas that matter to you, and use our exclusive insights to see what’s on the Albany agenda. Learn more.

 
 

MORE TURBULENCE AT BIO: Megan reports that “Nick Shipley, the leader of advocacy at the industry group Biotechnology Innovation Organization, left abruptly last week in the wake of the group’s positioning on a bill targeting Chinese biotechs firms. Two people familiar with the matter said he was fired.”

— “BIO, which represents companies including Merck and Regeneron, recently went from opposing to supporting the legislation, known as the BIOSECURE Act, which would effectively prohibit Chinese biotech companies from doing business in the U.S.”

— “The about-face followed a new CEO atop the organization and outrage from lawmakers, angry over opposition to a bill that its congressional supporters say is a matter of national security. … Shipley and BIO’s new CEO, John Crowley, disagreed about the strategy and positioning around the legislation, which played a role in Shipley’s abrupt departure, according to the two sources granted anonymity to discuss internal BIO affairs.”

GASSED UP: “Two Senate climate hawks are putting the country's biggest natural gas trade group in the crosshairs of another campaign to hold the fossil fuel industry accountable for its lobbying against strong action against global warming,” per E&E News’ Nico Portuondo.

— “Senate Budget Chair Sheldon Whitehouse (D-R.I.) and Sen. Ed Markey (D-Mass.) on Tuesday joined leaders from the Gas Leaks Project on Capitol Hill to urge the American Gas Association against using ratepayer money for what the lawmakers call disinformation campaigns.”

— “‘The American Gas Association has known about the health harms of gas for decades but worked for years to mislead the public,’ said Markey. ‘To make matters worse, the American Gas Association gets funding for its misinformation campaigns from your gas bills.’”

— “The lawmakers and environmental group allies said gas utilities are taking advantage of consumers by using money from their customers' bills to pay AGA membership fees,” but “the campaign likely won't go further than a public shaming for now; the lawmakers said they did not yet have plans to craft legislation.”

WHAT TO WATCH IN THE DATA PRIVACY FIGHT: “A fresh attempt to impose new limits on the kinds of personal information tech companies can collect about Americans — and how they use it — is already stumbling,” our Alfred Ng reports.

— “The bill, floated as a political compromise after years of partisan gridlock doomed previous attempts to write a national privacy law, is now under fire for those concessions. The draft language would preempt most existing state laws, a non-starter for some Democrats, and it allows anyone to sue if their privacy rights are violated, a move opposed by Republicans.”

— Those provisions are just two of the contentious issues that could end up bringing down the latest proposal from House Energy and Commerce Chair Cathy McMorris Rodgers (R-Wash.) and Senate Commerce Chair Maria Cantwell (D-Wash.), which is slated for a markup next week. Already, Senate Commerce ranking member Ted Cruz (R-Texas) has objected to the bill’s so-called private right of action — which allows individuals to sue for privacy violations — for one.

— The tech industry has also complained about the private right of action language and raised concerns about how the bill — which restricts how companies may use artificial intelligence in certain algorithmic decisions — would treat using people’s data to train those AI models.

— Privacy advocacy groups have yet to signal their support for the bill, pending their review of how the measure stacks up to state laws it’s seeking to preempt or past data privacy legislation debated in Congress.

FLY-IN SZN: Advocates for a wide range of issues will descend on the Hill this week to meet with lawmakers as they return from their spring recess, including the tech industry group TechNet, which has flown in executives from more than a dozen of its member companies.

— This year’s fly-in will focus on AI policy, and Silicon Valley leaders will meet with more than 40 lawmakers, including House AI task force leaders Jay Obernolte (R-Calif.) and Ted Lieu (D-Calif.), Senate AI working group member Mike Rounds (R-S.D.) and Senate Intelligence Chair Mark Warner (D-Va.).

— The renewables industry is also in town with the American Clean Power Association. The trade group has flown in frontline workers like technicians, installers, site managers, field technicians and assembly line workers to tout the industry’s benefits for their communities. But attendees will also spend their meetings with more than 170 congressional offices urging lawmakers to protect tax incentives for clean energy, pass permitting reforms and preserve the right to site clean energy on private land.

— Members of the Healthcare Distribution Alliance hit the Hill this week to discuss ways to address drug shortages and how the industry is trying to help minimize the fallout of those shortages, as well as supply chain issues.

— The Fiber Broadband Association will host “Fiber Day” tomorrow, which will feature interactive demo stations from its members that will aim to illustrate the benefits of fiber broadband technology for everything from 5G to precision agriculture to health care and education. The trade group is expecting appearances throughout the day from Sens. Peter Welch (D-Vt.) and Roger Marshall (R-Kan.) and Reps. Ann Kuster (D-N.H.) and Troy Balderson (R-Ohio).

SPOTTED at the Capitol Hill Club last night for an annual reception for Maggie’s List, which works to elect conservative women to Congress, per a PI tipster: Sens. Deb Fischer (R-Neb.) and Rick Scott (R-Fla.), House Speaker Mike Johnson, Reps. Claudia Tenney (R-N.Y.), Lloyd Smucker (R-Pa.), Mary Miller (R-Ill.), Daniel Webster (R-Fla.), Burgess Owens (R-Utah), Austin Scott (R-Ga.), Marc Molinaro (R-N.Y.), Anthony D’Esposito (R-N.Y.), Mike Lawler (R-N.Y.), Nicole Malliotakis (R-N.Y.), Mariannette Miller-Meeks (R-Iowa), Young Kim (R-Calif.), Randy Feenstra (R-Iowa) and Laurel Lee (R-Fla.); Sandra Mortham of Maggie’s List, former GOP lawmakers and candidates Sue Lowden, Jennifer Carroll and Chele Farley, Matt Beynon of BrabenderCox, Ben DeMarzo of Miller’s office, Britt Carter of the American Chemistry Council, Carrie Coxen, Kaitlyn Martin of Cozen O’Connor and Lauren Zelt of Zelt Communications.

 

A message from the Small Business Payments Alliance:

THE DURBIN-MARSHALL CREDIT CARD BILL IS A WINDFALL FOR MEGA-STORES: Small business owners oppose the Durbin-Marshall Credit Card Bill because new credit card mandates would deliver billions of dollars to the 5 biggest mega-stores and cost $1 billion in lost rewards. Read the new study here: https://smallbusinesspaymentsalliance.com/2024/02/07/small-business-owners-oppose-durbin-marshall-windfall-for-mega-retailers/

 
Jobs Report

Don “Stew” Stewart has founded the Stewart Group, a political advisory firm. Stewart was most recently an executive vice president at the Alliance for Automotive Innovation and previously served for over a decade as the deputy chief of staff for Senate Minority Leader Mitch McConnell.

Jason Rosenberg is joining Wells Fargo as head of public affairs, reporting to CEO Charlie Scharf. Rosenberg was most recently head of corporate affairs at Block and is a JPMorgan Chase alum.

— The American Council of Life Insurers is combining its advocacy functions — government relations and public affairs — into one department and named Jill Kozeny executive vice president and chief advocacy officer.

Gordon Gray is launching the Pinpoint Policy Institute, a nonpartisan nonprofit that will advocate for free markets and policies that promote economic growth. He most recently was vice president for economic policy at the American Action Forum, and is a Rob Portman alum.

J. Lucas Adair has joined Bradley Arant Boult Cummings as a senior adviser in the firm’s governmental affairs practice group in Huntsville, Ala. Adair was previously director of government relations and grant services at Keller Partners & Company and is an Education Department alum.

Ron Fein is becoming chief counsel for American oversight at Free Speech For People and Courtney Hostetler will succeed Fein as the money-in-politics group’s new legal director.

DCI Group has added Will Feuer to help grow its presence in New York City. Feuer was most recently a finance reporter for the Wall Street Journal.

 

SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, the newsletter taking you inside pivotal discussions at the most influential gatherings in the world, including WEF in Davos, Milken Global in Beverly Hills, to UNGA in NYC and many more. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.

 
 
New Joint Fundraisers

None.

 

A message from the Small Business Payments Alliance:

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New PACs

LV Republican Leadership Fund (PAC)

TAKING A STAND PAC (PAC)

ValueMyVote (Super PAC)

New Lobbying REGISTRATIONS

Alston & Bird LLP: Apprise Health Insights

Ameripen: Ameripen

Dentons US LLP: Fedex Corporation

Dentons US LLP: Jpmorgan Chase Holdings LLC

Gilliland & Mckinney International Counsellors (D/B/A/ Gmi Counsel): Environmental Investigation Agency USa

Hannegan Landau Poersch & Rosenbaum Advocacy, LLC: Sideprize LLC, D/B/A Prizepicks

Impact Health Policy Partners: Curana Health Management Services, LLC

K&L Gates, LLP: Westinghouse Electric Company LLC

Law Offices Of George Harris, LLC: Irwin County Commission

Nephcure: Nephcure

New Lantern, LLC: Lumina Ai

Rochester Institute Of Technology: Rochester Institute Of Technology

Tiber Creek Group: Daiichi Sankyo, Inc.

Trusynergy: Burrell Internationsl Group (On Behalf Of Otogenetics)

 

A message from the Small Business Payments Alliance:

SMALL BUSINESS OWNERS OPPOSE DURBIN-MARSHALL WINDFALL FOR MEGA RETAILERS: A new report reveals that the Durbin-Marshall Credit Card Bill would “disproportionately benefit the top five businesses in the U.S.” and that any proposed changes to the payment routing system “is demonstrably a favor to large—not small business.” The report, “Imposing Alternative Payment Networks on Credit Cards Will Likely Hurt Low Income Households and Small Merchants,” from the Chair of the Finance Department at the University of Miami’s Herbert Business School, found that: “The intent of the proposed Credit Card Competition Act (CCCA) is to reduce routing fees for credit card transactions to save merchants–and hence consumers–money. However, this analysis suggests that almost all of those savings will accrue to retailers with $500 million or more in annual sales, with little going to small businesses. Learn more: https://smallbusinesspaymentsalliance.com/2024/02/07/small-business-owners-oppose-durbin-marshall-windfall-for-mega-retailers/

 
New Lobbying Terminations

Constantinople & Vallone Consulting LLC: Statcare Urgent & Walk In Medical Care Pllc

Crestview Strategy US LLC: Canadian American Business Council

Crestview Strategy US LLC: Capital Power Corporation

Crestview Strategy US LLC: Teck Resources Limited

Hall, Render, Killian, Heath & Lyman, P.C.: Texas Health Resources

Hitachi Energy USa Inc. F/K/A/ Abb Enterprise Software, Inc.: Hitachi Energy USa Inc. F/K/A/ Abb Enterprise Software, Inc.

Laura Eugster Doyle: Arent Fox LLP On Behalf Of Lake Erie College Of Osteopathic Medicine

Laura Eugster Doyle: Arent Fox LLP On Behalf Of Work College Consortium

Mason Street Consulting, LLC: Behavr, Inc.

Mason Street Consulting, LLC: Mind 24-7

Mr. Scott Garrett: Honduras Prospera Inc

Paul Marcone & Associates, LLC: Genesis At The Crossroads

The Bridge Advisory Group: Dynamis Power Solutions

The Bridge Advisory Group: Fixed Asset Consulting

The Livingston Group, LLC: Army Alliance, Inc.

The Picard Group, LLC: Lifecare 2.0, LLC

United By Interest, LLC.: American Property Casualty Insurance Association Fka Property Casualty Insurers

 

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