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Dec 20, 2024 View in browser
 
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By Caitlin Oprysko

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With help from Daniel Lippman

THE FUTURE IS NOW: As Congress scrambles to head off a government shutdown at midnight following the implosion of a bipartisan stopgap and year-end policy grab-bag package, lobbyists’ grievances are rising to the surface, even as they’re resigning themselves to the new normal.

— Nevermind that lawmakers dug this hole themselves. “The bodies are just not capable of doing even minor bipartisan things on their own [through regular order], and so everything ends up” having to glom onto must-pass bills like continuing resolutions or the NDAA, said one Republican on K Street who was granted anonymity to speak candidly.

— “But then it becomes a complaint. … They become Christmas trees,” the lobbyist added, pointing out that parts of the 1,500-page CR that triggered conservative backlash are just “ordinary things that just need to be done,” like extending expiring health care and agriculture authorizations.

— The abrupt collapse of the CR on this week, which contained a number of big wins for interests on K Street that are likely dead for now, is a harbinger of what’s to come heading into a year that will be packed with high-stakes legislative battles. “It’s only going to get worse,” the lobbyist conceded.

— “What we have been advising our clients is that they should absolutely read into what is transpiring right now with these negotiations between the incoming White House team and House Republicans, and I think it is a sign of things to come as we look ahead to the fights next year,” one former House GOP leadership aide added.

— The arcane reconciliation process, which some Republicans on the Hill are hoping to deploy not once but twice next year, is “tough to navigate in the best of times,” the lobbyist said. Whichever route the GOP pursues “will be largely dictated by where the votes are, in particular in the House just given the narrow majority.” The lobbyist added: “It is going to be so delicate of a dance — and I have not seen anything even close to delicate in how these year-end negotiations were handled.”

— K Street is training various levels of ire on one of the chief instigators of the CR backlash: Elon Musk. In a letter Thursday to Bill McGinley, the general counsel of the newly created government efficiency commission co-led by Musk, National Community Pharmacists Association chief executive Douglas Hoey railed against the collapse of the bipartisan CR, which included a long-sought priority for the trade group: a crackdown on pharmacy benefit managers.

— Those reforms “would do precisely what DOGE was created to accomplish: create efficiencies and tax savings in government programs,” Hoey wrote. He called on the commission to start its search to root out government waste with PBMs who, “unfortunately, escaped accountability again this week with the failure of the continuing resolution,” despite President-elect Donald Trump professing his support for a crackdown as recently as last week.

— The first GOP lobbyist complained to PI about Musk’s inaccuracies in picking apart the CR via his social media platform on Wednesday, noting that even more benign inclusions like funding to cover the cost of rebuilding the Francis Scott Key Bridge now “have a certain amount of stink” on them “because of Musk’s misrepresentation.”

— “There’s some sense that Trump’s got to realize — maybe there’s some recognition that in some respects, he’s created a monster,” by empowering Musk, whose influence is compounded by his immense personal wealth — or “f—k you money,” the lobbyist said.

— That doesn’t mean K Street is rushing to court Musk en masse — at least for now. “Maybe it’ll come to that. I hope not,” said the former GOP aide. “But I mean, look, it’s a fascinating new dynamic. It’s a new wrinkle as we look ahead to 2025.”

TGIF and welcome to PI. This is your host’s last edition of the year, and I want to thank everyone who’s sent in tips and feedback of any kind this year, responded to my harried calls/texts/emails, met me for coffee or stopped me to say hello in the wild. We couldn’t write this newsletter without you.

THAT SAID: We’ve got two more editions coming out next week with Dana Nickel at the helm, so send her all your hottest pre-holiday news: dnickel@politico.com. Send me the best tips to run down for when we return in the new year: coprysko@politico.com. And be sure to follow us both on X: @delizanickel and @caitlinoprysko.

 

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TOP GOP POLLSTER OUSTED: Chris Wilson, the founder and CEO of top Republican polling firm WPA Intelligence, was fired after company audits found he likely used firm money to pay for personal expenses, two people directly familiar with the matter tell Daniel.

— It comes after his firm’s CFO was fired and charged with embezzlement earlier this year, a charge that she denies. That led people on WPAi’s leadership team to start looking into how Wilson had spent company money, according to the people. Wilson, who has worked on behalf of presidential efforts for Florida Gov. Ron DeSantis and Sen. Ted Cruz (R-Texas), was fired on Dec. 5, according to the people, and is no longer listed on the company’s website.

— The audits of the company’s finances found that over the past several years Wilson used firm money to pay for items that were likely for personal expenses, such as vacations, health charges and the use of a nanny, according to five people with direct knowledge of the situation.

Ryan Leonard, a lawyer representing Wilson, called the allegations behind Wilson’s firing “defamatory and false.” “Chris’s former business partners at WPAi at all times had complete transparency into all aspects of the business, including every single business transaction,” he said in a statement. “The timing of these allegations is particularly surprising given that, following completion of a recent audit, Chris was actually given a raise. While Chris recently left the company following the election, he wishes his former team members at WPAi all the best.”

WHAT AJIT PAI IS UP TO: Former FCC Chair Ajit Pai “is back shaping Federal Communications Commission policy, but this time he’s doing it from” Trump’s transition team, per John Hendel and Daniel. Several people familiar with the transition planning described Pai as the transition team lead for the commission.

— “Pai’s perch could be a boon for the cellular industry,” which Pai previously worked in as a lawyer for Verizon and “which is likely to face competition from rival newcomers like Elon Musk’s satellite broadband service Starlink.”

— In addition to the transition work, Pai is also in talks with top telecom trade group CTIA about its CEO position, four people told John and Daniel, after the association’s longtime CEO Meredith Attwell Baker announced last week that she’ll step down in 2025.

FIRST IN PI — WOLFE JUMPS TO SMI: Steve Wolfe is heading to defense lobbying firm SMI, where he’ll be a vice president. Wolfe is the founder of Cardinal Point Strategies, and is the former executive director of the Alliance for Artificial Intelligence in Health Care. Before that he served as senior policy adviser to the late Sen. Ted Kennedy (D-Mass.), handling Kennedy’s defense appropriations and authorizations portfolio. He’ll bring several clients with him to SMI, including Scientific Systems Company, Tonix Pharmaceuticals and Colibrium Additive, a GE Aerospace company.

MUSK DIGEST: The Washington Post’s Cat Zakrzewski, Jacqueline Alemany, Marianne LeVine, Liz Goodwin and Colby Itkowitz have a recap of Musk’s week: “critics of the world’s richest man say he attained a new title: ‘shadow president’ of the United States.”

— Musk’s flood of social media posts castigating the CR “ricocheted through Washington, where some lawmakers reported their phone lines were ringing all day with calls from constituents who saw Musk’s posts.”

— “Musk’s outsize role in sending the federal government careening toward a potential shutdown before Christmas has alarmed Democrats, academics and watchdog groups, while some Republicans said his intervention was uninformed.”

— Meanwhile, our Meridith McGraw and Holly Otterbein dug into where Trump and Musk’s relationship stands after the whole debacle, and Anthony Adragna has more on Musk’s new threat to throw his gobs of cash at funding “moderate” primary challengers to run against certain congressional Democrats.

STATE OF AFFAIRS: “Statehouses across the US are wrestling with how to contain an explosion of frauds costing elderly Americans an estimated $28 billion a year. With consumer education failing to reach many would-be victims, lawmakers are exploring how to turn banks into a more formidable line of defense,” Bloomberg’s Tom Schoenberg reports.

— “Lenders already have robust systems to thwart credit-card fraud, in which they’re held liable. Why not use that technology to trip alarms when customers get tricked by con men? The question is part of a broader debate over how to balance personal responsibility and the duty of banks to help customers safeguard their savings.”

— “It has taken on more urgency in recent years with retirees controlling a record stockpile of wealth. So far, banks are defusing efforts to boost their liability.”

HEADS UP: The law firm Wiley issued a gentle reminder on Thursday for companies, trade groups and advocacy groups looking to sway the confirmation prospects of Trump’s nominees, warning that “if a nomination ultimately is subject to confirmation by the Senate, then efforts to influence the nomination and confirmation may be subject” to federal lobbying regulations and tax laws governing nonprofits.

— “Managing and tracking such lobbying activity is very important for the Fourth Quarter LDA report due on January 20, 2025, the 2025 First Quarter LDA report, and thereafter, for tax returns due for nonprofits, for tax calculations for for-profits, for trade association dues notices, and for the continued charity status of 501(c)(3)s,” Wiley partners Mark Renaud and Thomas Antonucci write in their refresher on the relevant laws.

 

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Jobs report

— The Bank Policy Institute has promoted Sam Riley to senior vice president and head of international regulatory policy, Austin Anton to senior vice president and head of communications and Will Bonner to assistant vice president of communications.

— The Public Affairs Council has promoted Laura Brigandi to senior manager of advocacy and digital practice, Yeraldin Borray Castillo to manager of programs, Rayla Everhart to senior manager of database and office operations and Madalyn Flood to communications and marketing senior associate.

Haley Scott is returning to BerlinRosen as a senior vice president, consulting for Democratic campaigns. She was most recently chief of staff for Rep. Dan Goldman (D-N.Y.), whose campaign she’ll continue to work for.

New Joint Fundraisers

None.

New PACs

DMAC PAC (PAC)

PROVEN CONSERVATIVES PAC - FEDERAL (Leadership PAC: Byron Donalds)

New Lobbying REGISTRATIONS

Akin Gump Strauss Hauer & Feld: Nextwave Holdco, LLC

Axadvocacy Government Relations: Firehawk Aerospace

Ballard Partners: Lifescience Logistics

Capitol Strategies, LLC: Biolab Holdings, Inc.

Cgcn Group, LLC: Vertex Pharmaceuticals Incorporated

Checkmate Government Relations: Bruce Roberts

Crowell & Moring LLP: Megajet, Inc.

Dla Piper LLP (US): Association For Advancing Automation

Government Relations Group, LLC: Nobilia North America, Inc

Invariant LLC: Mach Industries Inc.

Lobbyit.Com: Jamulians For Representation

Lobbyit.Com: Munitions Industrial Base Task Force, Inc.

Lobbyit.Com: The Senior Citizens League

Mccaulley&Company: City Of Warren

Prism Group: Small Business Multi-Cloud Coalition

Steptoe LLP: Highly Innovative Fuels

The Livingston Group, LLC: Eddystone Marine & Rail Terminal Co. LLC

Thorn Run Partners: Borgwarner Inc.

Washington Alliance Group, Inc.: Whitney Strategic Services LLC

New Lobbying Terminations

Coast To Coast Lobbying LLC: Lifesafer/Scramsystems

Kogovsek & Associates, Inc.: Central Colorado Water Conservancy District

Kogovsek & Associates, Inc.: Water Protection Association Of Central Kansas

Mehlman Consulting, Inc.: Advamed: Advanced Medical Technology Association

National Women’s Health Network: National Women’s Health Network

Whitmer & Worrall, LLC: A1 Lithium / Anson Resources

 

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