Inside Trump’s swamp

Presented by NFIB: Delivered daily, Influence gives you a comprehensive rundown and analysis of all lobby hires and news on K Street.
Dec 12, 2024 View in browser
 
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By Dana Nickel

Presented by NFIB

With help from Daniel Lippman and Marcia Brown 

EMBRACING THE SWAMP: As President-elect Donald Trump prepares to return to the White House, lobbying firms and watchdog groups alike have taken note of his picks for high-level roles in his second administration and their ties to K Street.

— His chief of staff, Susie Wiles, and attorney general pick, Pam Bondi, have both worked as lobbyists for Ballard Partners, with clients ranging from major companies to foreign interests. Wiles and Bondi are two among a growing group of registered federal lobbyists the president-elect has selected for his incoming team.

— Trump’s pick to head the Transportation Department, former Rep. Sean Duffy, joined Republican-leaning lobbying firm BGR Group as senior counsel after leaving Congress in 2019. There, he represented interests from the investment, finance, securities and transportation sectors, and clients including Comcast and Pfizer, according to OpenSecrets. Trump also selected former Georgia GOP Rep. Doug Collins to lead the Veterans Affairs Department. Last year, PI reported that Collins, a staunch Trump defender while in Congress, registered to lobby on criminal justice issues on behalf of the Justice Action Network.

— Other former lobbyists on Trump’s 2.0 roster include his picks for SEC chair, ambassador to Canada and the counsel to the Department of Government Efficiency, as well as U.S. trade representative and leader of the Justice Department’s antitrust unit.

— Lobbyists view the increase of K Street insiders in the White House as a benefit. BGR Group managing director and senior adviser to Trump’s 2016 campaign David Urban told PI in an interview that Trump’s decision to bring on former lobbyists can help his administration accomplish its goals more efficiently.

— “Having people who’ve worked here in Washington and worked around the Hill and this White House previously,” Urban said, “I think it’s going to be helpful to get things going.”

Tom Davis, a partner with Holland & Knight’s public policy regulation group, agreed: “You’ve got to take people that understand it’s not unlike other administrations [and] know what’s going on, and lobbyists are the ones in town know what’s going on.”

— Trump’s embrace of former lobbyists in his second term is a sharp pivot from his first campaign’s main promise to “drain the swamp.” Davis added that loyalty is a top priority for Trump 2.0 as well.

— “They all have a personal loyalty to Trump,” he said. “His first Cabinet, he didn’t know half of his people. I’m not even sure some of them voted for him. They were recommended by other people … and I think you learn a lot in four years.”

— But watchdog groups are wary of the potential conflicts of interest that come with Trump welcoming current and former lobbyists into his administration.

— “There is a clear risk in the number of lobbyists that are part of the transition or the incoming administration appointees and picks, from the perspective of contention being influenced by muddied interest,” said Hilary Braseth, the executive director of OpenSecrets.

— Braseth continued: “The patterns we’ve seen throughout the decades that we’ve been following money in politics is that most often, the influence of money does have an impact on policy decisions. What we would want to continue to watch in this upcoming administration is examples where that happens.”

Happy Thursday and welcome to PI. Happy to be here. Caitlin’s back tomorrow. Until then, please share gossip, news tips and coffee recs with me at dnickel@politico.com and on X: @delizanickel.

 

A message from NFIB:

Congress: Stop the massive tax hike on small businesses. Without Congressional action, 9 out of 10 small businesses will be hit with a massive tax hike next year. This will decimate small businesses' ability to grow, hire, invest in their employees, and give back to their community. Congress needs to make the 20% Small Business Deduction permanent. Learn more at SmallBusinessDeduction.com

 

FIRST IN PI — TWO RECENT MINI-DRAMAS AT BROOKINGS — Board members of the Brookings Institution recently received an anonymous email titled “Brookings Leadership Concerns” that called for a “no confidence” vote on Brookings president Cecilia Rouse, according to an email sent by the board chairs and obtained by Daniel.

— It also noted that a petition asking for the same action had been posted on Change.org but was quickly taken down. “As of now there have been no news reports, or anything public as far as we can determine,” Brookings co-chairs Glenn Hutchins and Suzanne Nora Johnson wrote in the email, noting they were “monitoring the situation closely” and would discuss the matter at their next board meeting. Sadly, PI has been unable to obtain the initial email detailing the concerns about Rouse (send!), but one board member said she was “not the warmest and cuddliest person in the world so I’m sure she has rubbed some people the wrong way.”

— Rouse did not respond to a request for comment.

— The head of fundraising, Tamara O’Neil, also quietly left the think tank over the summer. O’Neil had worked as a VP and chief development officer at Brookings for a little over two years before departing in late July, according to her LinkedIn profile; a departure memo from Rouse obtained by PI said that O’Neil and Brookings had “parted ways,” thanking her for her service. She is now founder and CEO of fundraising firm Capital Catalyst Solutions.

— A former Brookings employee who had worked with O’Neil said that she had told them that she wasn’t happy at the organization in the months before she left and that her relationship with Rouse was not strong. The person also said that people who worked for O’Neil had complained about the strength of her management style to colleagues throughout most of her tenure “and got particularly bad this year.”

— In a text message, O’Neil said she valued her time at Brookings, was proud of her work there and left to pursue other opportunities. “Unfortunately your source is incorrect and the characterization presented by your source is false,” she added.

— A spokesperson for Brookings declined to comment.

INVASION OF THE TECH BROS: Trump has selected a handful of Silicon Valley executives to run posts within the Pentagon, and if they all make it, they could enact significant change in the building and benefit themselves along the way, report our Paul McLeary and Jack Detsch.

John Phelan, a billionaire finance executive with no military experience, has been tapped to be Navy secretary. Trump also selected billionaire financier Stephen Feinberg as the Pentagon’s No. 2. Software company Palantir’s chief technology officer, Shyam Sankar, is being considered for the Pentagon’s top research and engineering position. Anduril Industries co-founder and chair Trae Stephens is also in the running for a high-ranking job in the building.

— “They’ll be tasked with building weapons faster, fixing a broken shipbuilding system and matching China’s tech prowess. And while every new administration tries to clean up the Pentagon, this crew of outsiders has animated the tech sector.”

— The executives each have stakes in companies working with the Pentagon and will need to address potential conflicts of interest, including Palantir’s software platform that the Pentagon is helping fund. Other investors with interests in defense companies, like SpaceX founder and CEO Elon Musk, are close to the president-elect and play a role in shaping the new administration (though Musk and other billionaires’ previous work with the Pentagon has had limited success).

Poked him: Meta donated $1 million to Trump’s inaugural fund, scooped WSJ’s Dana Mattioli and Rebeccea Ballhaus.

— The donation, confirmed by the company, is a departure from the company’s tradition and “the latest step by CEO Mark Zuckerberg to bolster his once-fraught relationship with the incoming president.”

FIRST IN PI — FROM THE HILL: Elizabeth Horner is joining ArentFox Schiff’s D.C. office as a partner. She comes to the firm from the Senate Environment and Public Works Committee, where she served as chief counsel under ranking member Shelley Moore Capito (R-W.V.) and senior counsel under Chair John Barrasso (R-Wyo.).

— “Elizabeth Horner is an important leader in the areas of environmental protection and climate policy and will play a critical role in helping our clients navigate policy changes under the new administration and new Republican Congressional majority,” said Philip S. English, senior government relations adviser for the firm. “Her reputation and expertise in law, legislation, and regulation make her an important addition to our Government Relations team and the ArentFox Schiff environmental practice.”

PAC LAUNCHES AD BUY TO SUPPORT RFK JR. NOMINATION: America’s Values, the primary super PAC that supported Robert F. Kennedy Jr.’s run for president, is wading into the media landscape to boost his nomination vote.

— The PAC launched a “takeover” of X, formerly known as Twitter, this week to drive traffic to a landing page that has at least 38 million views, according to Tony Lyons, a spokesperson for the PAC.

— Kennedy’s confirmation as secretary of the Department of Health and Human Services remains an open question, even as his messages on the food system appear to be resonating on Capitol Hill. His views on vaccines, however, have sparked strong resistance.

— “The media thrives on misinformation and false accusations,” the page states. “They’ll do anything to protect their corporate interests. That’s why we created the Kennedy Defense Database: to debunk the myths surrounding RFK Jr. Join the movement for a healthier America (#MAHA) and help us dismantle the playbook.”

— The “Kennedy Defense Database” lists a number of Kennedy’s remarks on vaccines, corporate influence on the food system and federal nutrition assistance and includes links to “debunk the myths” on Kennedy’s positions. (Myth #5: “Kennedy wants to ban vaccines.” The truth, it says: “Kennedy wants to prohibit vaccine mandates.”)

HIS SECOND ACT: Trump’s short-lived pick for attorney general, former Rep. Matt Gaetz, is in talks to join Florida megadonor John Morgan’s law firm, report our Kimberly Lenoard and Gary Fineout.

— This role at Morgan & Morgan would be in addition to Gaetz’s job as a prime-time host at the conservative One America News Network, which begins in January. Morgan has praised Gaetz for his positions on processed foods, marijuana legalization and property insurance.

— “Morgan said he could see Gaetz being helpful in a recent lawsuit his firm filed that alleges major food companies specifically engineered their products to be addictive and then marketed them to kids, contributing to chronic illness.”

SPOTTED on Tuesday night at The 507 for Coinbase’s holiday party, per a tipster: House Majority Whip Tom Emmer and Reps. Wiley Nickel (D-N.C.), Nikki Budzinski (D-Ill.), Eric Sorensen(D-Ill.), Mike Levin (D-Calif.), Mary Peltola (D-Alaska), Yadira Caraveo (D-Colo.), Mark Takano (D-Calif.), Jimmy Gomez (D-Calif.), Jimmy Panetta (D-Calif.), Ritchie Torres (D-N.Y.), Dan Meuser (R-Pa.), Andy Barr (R-Ky.), Mike Lawler (R-N.Y.), Lance Gooden (R-Texas), Nicole Malliotakis (R-N.Y.) and Andrew Garbarino (R-N.Y.); former Rep. Carlos Curbelo (R-Fla.); and staff from the offices of Reps. Gwen Moore (D-Wis.), Don Davis (D-N.C.), Maxine Waters (D-Calif.), Dan Goldman (D-N.Y.), French Hill (R-Ark.), Mike Collins (R-Ga.), Mike Turner (R-Ohio), Glenn “GT” Thompson (R-Pa.), Patrick McHenry (R-N.C.), Zach Nunn (R-Iowa), Jim Banks (R-Ind.), Guy Reschenthaler (R-Pa.), the DCCC and the NRCC.

— And at the Hispanic Lobbyists Association’s holiday party and farewell celebration to its 2023-2024 board of directors at UPS Townhouse on Capitol Hill, per a tipster: Reps. Adriano Espaillat (D-N.Y.), Linda Sanchez (D-Calif.), Andrea Salinas (D-Ore.) and Rob Menendez (D-N.J.)

 

A message from NFIB:

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Jobs report

Colin Coleman, a former partner at Goldman Sachs, is joining Mercury Public Affairs as a member of its advisory board.

Katie Mabardy is the Environmental Law Institute’s new vice president for development. She was previously the World Wildlife Fund’s director of philanthropy for the Western region.

Julie Nickson is now vice president of federal advocacy and coalitions at the American Cancer Society Cancer Action Network. She was previously the group’s director of federal relations.

— The National Federation of Independent Business announced two promotions on their grassroots team: Elizabeth Parks was promoted to national director of grassroots. She previously worked for Rep. Trent Kelly and former Reps. Jo Bonner and Alan Nunnelee. Blake Glinn was promoted to a senior regional grassroots manager and is an alum of the Michigan state Senate.

Jenn Pellegrino is now senior director of media affairs and chief spokesperson for the America First Policy Institute. She most recently was an anchor at Newsmax and is an OAN alum.

Seven Letter has added Kelly Devers-Franklin as a partner, Kayla Boswell as a manager and Danny Jackson and Jody Gallinger as content specialists.

New Joint Fundraisers

None.

New PACs

Daughters Of Liberty (PAC)

Phronesisdc, LLC PAC (PAC)

Americans For Responsible Innovation Ltd. Political Action Committee (PAC)

New Lobbying REGISTRATIONS

Accelerate Strategies: Pacific H2 LLC

Animal Legal Defense Legislative Fund: Animal Legal Defense Legislative Fund

Apex Clean Energy, INC.: Apex Clean Energy, INC.

Ballard Partners: Safe Pro Group, INC.

Ballard Partners: The Toy Association

Barnes & Thornburg, LLP: Inventus PowerCFM Strategic Communications (Conkling Fiskum & McCormick): Native American Youth and Family Center (NAYA)

Culton Consulting LLC: City of Sunnyside

Culton Consulting LLC: City of Toppenish

Culton Consulting LLC: Empire Health Foundation

Fierce Government Relations: Wastewater Action Alliance

Firearms Policy Coalition, INC.: Firearms Policy Coalition, INC.

JM Burkman & Associates: Pressure Partners

Mercury Public Affairs, LLC: Flock Group INC. D/B/A Flock Safety

Mercury Public Affairs, LLC: HP

New Lobbying Terminations

Caterpillar INC.: Caterpillar INC.

Federal Hall Policy Advisors, LLC: Allstate Insurance Company

Fluor Corporation: Fluor Corporation

Micron Technology, INC.: Micron Technology, INC.

Offshore Marine Service Association: Offshore Marine Service Association

 

A message from NFIB:

Congress: Stop the massive tax hike on small businesses.

Small businesses are the foundation of the U.S. economy. Without Congressional action, 9 out of 10 small businesses will be hit with a massive tax hike next year. This will decimate small businesses' ability to grow, hire, provide for their employees, and give back to their community.

As part of the 2017 Tax Cuts and Jobs Act, Congress cut corporate taxes permanently but made the 20% Small Business Deduction temporary. Allowing the 20% Small Business Deduction to expire would hurt the kinds of small businesses we should be supporting. Congress has already given permanent tax relief to big companies. They must do the same for America’s 30 million small businesses.

Congress needs to make the Small Business Deduction permanent and help level the playing field between small businesses and their large, corporate competitors.

Learn more at SmallBusinessDeduction.com

 
 

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