New members, meet the âslush fundâ
Many Hill freshmen are already establishing leadership PACs despite association with abuse
Posted Jan 14, 2019 5:55 PM
Stephanie Akin
@stephanieakinHouse Democrats to consider publishing internal caucus rules âin short orderâElizabeth Warren planned fanfare, but instead sheâs getting pannedNo âmaterial impactâ of foreign interference in 2018 elections, Trump administration finds
Reps. Alexandria Ocasio-Cortez, D-N.Y., left, and Ilhan Omar, D-Minn., are among the more than two dozen freshman lawmakers who have established so-called leadership PACs, a type of fundraising committee critics say is too often abused. Ocasio-Cortez and Omar have pledged not to accept corporate PAC money. (Tom Williams/CQ Roll Call)
The newest class of congressional lawmakers â some of whom campaigned against corruption and corporate influence in politics â is rapidly adopting a practice that critics say is among the swampier in Washington.
More than two dozen new members of the House and Senate â including prominent freshmen such as New York Democratic Rep.
Alexandria Ocasio-Cortez and Utah Republican Sen.
Mitt Romney â have established so-called leadership PACs, according to data compiled by government watchdog group Issue One. Leadership PACs are fundraising committees that allow lawmakers to raise money for their colleagues and candidates.
The vast majority of House and Senate members have one, and many say they can be helpful tools to support other politicians and the issues they care about. But the PACs are not subject to the same restrictions on personal spending as individual campaign committees, leading to numerous examples of alleged misuse. Critics say they also allow politicians to evade campaign contribution limits and obscure donations from corporations and other powerful groups.
âThe new freshman class of 2018 has said that one of the fundamental issues they ran on, and they heard from their constituents about, was to clean up the corruption in Washington and to diminish the influence of money in politics,â said
Tim Roemer, a former Indiana Democratic congressman and U.S. ambassador to India. âLeadership PACs, as currently structured, add to the problem.â
Also watch: First 2020 Senate race ratings are here
An âinfluence gameâ
Roemer co-chairs Issue Oneâs
ReFormers caucus, a group of former members of Congress, governors and Cabinet members that has urged the Federal Election Commission to close âloopholesâ in its regulation of leadership PACs.
Leadership PACs allow lawmakers to accept additional money from donors who have already maxed out donations to their individual campaign committees, effectively raising the cap on campaign donations from deep-pocketed benefactors. Because leadership PACs are little known outside of the Beltway, with
obscure names like the Penguin PAC or the Blue Hen PAC, voters are less likely to be watching.
As of this week, all nine of the new senators have formed leadership PACs, as have 23 of the 92 House freshmen, said Michael Beckel, the manager of research, investigations and policy analysis at Issue One. That brings the total number of Hill lawmakers with leadership PACs to 437 out of 534, or 82 percent.âFor many incoming members, leadership PACs are part of the Washington influence game,â Beckel said. âSome of them have more quickly embraced them than others.â
Issue One and the Campaign Legal Center produced
a report last year that showed that roughly 60 percent of the $150 million raised by leadership PACs between Jan. 1, 2017, and Sept. 30, 2018, came from political action committees connected to companies, trade associations, labor unions and other groups that frequently have business before lawmakers.
Want insight more often? Get Roll Call in your inbox
Only
45 percent of the money raised through leadership PACs during that same time period went to contributions to federal candidates or other political committees. Instead, some members of Congress used their leadership PACs for personal expenses that would not be allowed from authorized campaign accounts, including spending at resorts, golf clubs and fine dining establishments, the report found.
New York Democrat
Kathleen Rice plans to reintroduce in the House this week a bill that would reign in abuse of leadership PACs, among other revisions, an aide said. The so-called
The Accountability and Transparency Act that Rice introduced with Wisconsin Republican
Mike Gallagher and Washington Democrat
Derek Kilmer was one of two bipartisan measures unveiled last Congress that aimed to prohibit the âpersonalâ use of money raised through leadership PACs, a restriction already in place for individual campaign committees.
The lack of such basic regulations makes even legitimate use of a leadership PAC appear tainted, said Rep.
Scott Peters, co-sponsor of the so-called
Leadership PAC Limitation ACT, the other bipartisan measure introduced last Congress.âEven things that are legal just make the whole system look terrible,â the California Democrat said. âThe notion that you would be spending money on yacht clubs, and Broadway tickets, golf retreats and trips in limousines â it is just not appropriate for elected officials to be doing that, and it does not engender trust.â
âUseful toolâ
But even the some of the staunchest critics of the rules regulating leadership PACs have established their own, including Peters and
Rice. Petersâ committee â
Supporting House Problem Solvers â spent $153,000 in the 2018 midterm cycle, $151,000 of which went to federal candidates and state party committees. The remainder was spent on compliance.
Peters said the PAC can be a âuseful toolâ to help colleagues get elected in the absence of a public system to finance campaigns, but lawmakers have to be ârigorousâ about ensuring the money is spent properly.
The new members who have already established leadership PACs include high-profile figures like Ocasio-Cortez, who rose to prominence with vows against accepting donations from corporate PACs.
The pledge was understood as a shorthand declaration of liberation from corporate interests.
Ocasio-Cortezâs leadership PAC,
Courage to Change, was formed in late November, too recently to have filed any public financial disclosures. Frank Llewelyn, the committeeâs treasurer, said the PAC had not started fundraising. The end-of-year balance in its accounts was $4,700, one contribution and one expenditure, he said.
âWe are committed to the highest ethical standards, which is best represented by our âno corporate moneyâ position,â Llewelyn said. âWe realize that the regulation of leadership PACs need to be improved.â
Another House freshman, Minnesota Democrat
Ilhan Omar, established her
Inspiring Leadership Has A Name PAC in October. It had not spent the $5,000 it had raised by the most recent filing deadline at the end of November. Omarâs campaign did not return a request for comment but
told the Center for Responsive Politics the PAC does not accept corporate PAC contributions.
Sharing the wealth
Texas Republican freshman
Lance Gooden said he hadnât even heard of leadership PACs before he was advised to start one to help other candidates during his House campaign. Running for a safe GOP seat, he said he raised more money than he needed for the general election.
âMy intention was to use my leadership PAC going forward to help other candidates who need resources,â he said, adding that he was aware of alleged abuse of such committees.
âMy internal rule of thumb is that we have to make sure that a solid majority of this money is spent on other races and not on frivolous expenses.â he said. FEC filings show that almost all of the
$17,000 Goodenâs committee disbursed went to other federal and local candidates.
But not all members are so self-disciplined, said Adav Noti, a former FEC lawyer who now works at the Campaign Legal Center.
âItâs not inherently bad to have one if you are one of the few members of Congress who actually uses it for its intended purpose, but thatâs fairly rare at this point,â Noti said.
He added that as long as party leaders use fundraising prowess to determine who will rise in the ranks and get coveted committee chairman positions, the incentive for members to establish leadership PACs will remain strong.
Zach Wamp, a co-chairman of Issue Oneâs ReFormers Caucus and a former Tennessee GOP congressman, said he encourages new members to avoid that pressure, though he recognized they were unlikely to follow his advice.âIt sure looks like now you have to do it in order to advance, but it doesnât make it right,â he said. âIt is a proliferation that is unhealthy. It pollutes the Congress, and it leads to, I would call it, unintentional corruption.â