From the August 24 edition of Fox News' Fox & Friends:
Loading the player reg...
On the August 3 edition of CBS This Morning, CBS News allowed contributor and Republican strategist Frank Luntz to defend Republican presidential candidates courting donors at an event hosted by the Koch brothers without disclosing that he has previously advised Koch-affiliated groups. The Koch brothers have used Luntz as a messaging consultant for years, dating back to the 2010 election cycle, and including messaging advice for Americans for Prosperty and Freedom Partners.
Loading the player reg...
From the August 3 edition of Fox News' Fox & Friends:
Loading the player reg...
In the years since the Supreme Court's 2010 Citizens United decision, political spending has skyrocketed, much of it in secret. The ruling has kept the media and public from knowing where this "dark money" comes from and what conflicts of interest exist. However, if President Obama decides to issue an executive order requiring contractors to disclose their political donations, as he is reportedly considering doing, journalists will soon be able to expose the hidden relationships between contractors and elected officials.
Citizens United opened the financial floodgates to dark money groups - organizations that raise unlimited money from donors to pay for political advertising and campaign organizing but are not obligated to disclose where the money came from. The decision has allowed corporations and wealthy individuals to have enormous influence over elections because it allows them to get around the legal direct donation limits to candidates and parties, creating what many view as a corrupting influence.
As a recent New York Times editorial noted, President Obama is considering issuing an executive order that would force federal contractors to disclose donations to dark money groups. The editorial, which advocated for an order "requiring federal contractors to disclose their donations to political candidates," also noted that House Republicans are currently crafting legislation to further decrease transparency in political spending. Because of entrenched Republican opposition to campaign finance reform, the proposed executive order requiring disclosure on the part of federal contractors may be the only forthcoming measure to address the crisis of money in politics.
[Center for Responsive Politics, accessed 7/14/15]
Some of the larger implications of the Citizens United decision and the ability of federal contractors to skirt federal law have been the subject of investigative reporting by national media, who have looked into the origins of dark money groups. But federal contractors' political spending has received little coverage, mostly because so little reliable information is available, given the secretive nature of the donation process. That is slowly changing, thanks to a renewed push by media outlets and advocacy groups for executive action to force contractors to disclose donations. Their efforts could soon produce results and give media the power to report on how contractors try to gain influence by supporting candidates through dark money groups.
Citizens United gave federal contractors a huge incentive to contribute to these third-party groups as a way to curry favor with politicians who award lucrative government contracts. Washington hands out hundreds of billions of dollars annually in federal contracts and grants, and a vast majority go to large corporations. According to the Brennan Center, "Since 2000, the top 10 federal contractors have made $1.5 trillion from the government." In some states, these federal contractors are an outsized influence on the local economy.
Though the law says 23 percent of federal contracts must go to small businesses, large defense contractors like Lockheed Martin and Raytheon have found ways to qualify as small businesses in certain circumstances. Nine of the top 10 contract winners so far this year have been defense contractors whose political action committees (PACs) were among the largest contributors to federal candidates in the first quarter of 2015:
Requiring contractors to disclose donations would not only affect companies that survive off of federal contracts, like many defense firms, it would also shed light on companies for whom contracts are only part of a larger business model, such as the billionaire Koch brothers-controlled Koch Industries, which has a history of winning federal contracts.
The potential conflict of interest inherent in allowing contractors to donate to politicians who decide which companies get government contracts was acknowledged as far back as 1940. As The Brennan Center for Justice's Ciara Torres-Spelliscy reported, the 1940 Hatch Act made it illegal for contractors to donate "directly or indirectly to make any contribution of money or other things of value, or to promise expressly or impliedly to make any such contribution to any political party, committee, or candidate for public office or to any person for any political purpose or use." However, courts have decided that a contractor may set up its own super PAC as a separate entity to get around the Hatch Act. As the Brennen Center explained in a report on one of the legal challenges to the law:
In 2013, Public Citizen launched a complaint against Chevron for giving $2.5 million to a super PAC called the Congressional Leadership Fund (CLF). This expenditure was the largest one from a for-profit publicly traded company in the 2012 election cycle.
This should have be a slam dunk of a case since Chevron is a government contractor covered by the Hatch Act. But the FEC did not see it that way. As Mother Jones reported, "The FEC bought the company's argument, which is that Chevron Corporation (the organization that donated to CLF) and Chevron U.S.A. (the organization with government contracts) are entirely different entities." It did not matter that Chevron U.S.A. is 100 percent owned by Chevron Corp. Now it is open season for government contractors to spend in federal elections since all they have to do is spend through a different subsidiary. The Hatch Act is now barely worth the paper it's written on if this is how the FEC is going to "enforce" it.
And while super PACs are transparent, listing publicly where they got their funds, the donors to super PACs can be dark money conduits like 501(c)(4)s or 501(c)(6)s. Consequently, federal contractors could be hiding among the donors of $600 million in dark money that has been spent in the past four years.
While an executive order would not eliminate contractors' ability to donate to dark money groups, as the Brennen Center points out, it would give journalists and citizens a clearer view into which organizations are supporting which candidates, and could go a long way toward deterring corrupt pay-to-play practices:
Such disclosure [of federal contractor's donations] would not bring all dark money to light, but it would expose a type of dark money that should be especially troubling: campaign contributions that could have been given to influence a contract awarded by the government.
The Wall Street Journal's opinion page has been serving as a mouthpiece for the fossil fuel industry's attacks on the Environmental Protection Agency's (EPA) Clean Power Plan, which will set limits on carbon pollution from power plants. Nearly every WSJ op-ed about the proposed rule since it was released on June 2, 2014 has been written by people with ties to the energy industry -- and every single one has attacked it.
The Wall Street Journal dismissed concerns that likely Republican presidential candidate Jeb Bush has delayed announcing his campaign while he sidesteps campaign laws and continues coordinating with his super PAC, describing questions about his candidacy as the "return of the speech police." But Bush has been facing increased scrutiny from both legal experts and media noting that he may have violated the law.
Campaign law watchdogs organizations have repeatedly filed complaints with the Federal Election Commission urging them to investigate whether Jeb Bush is illegally coordinating with the super PAC Right to Rise. They argue that Bush is in violation of campaign finance laws that prohibit candidates from certain coordination with PACs and believe that Bush's actions suggest he should be treated as a presidential candidate under the law, regardless of whether he's formally announced his candidacy.
The Wall Street Journal dismissed these concerns in a June 8 editorial, warning readers not to "be surprised if the subpoenas [from the DOJ] hit Republican candidates at crucial political moments." The Journal described criticism of Jeb Bush for delaying his announcement as the "return of the speech police" from the "political left":
The theory behind this accusation is campaign "coordination," the new favorite tool of the anti-speech political left. Earlier this year the Justice Department invited such complaints with a public statement that it would "aggressively pursue coordination offenses at every appropriate opportunity."
Under federal law, illegal coordination occurs if a campaign expenditure (say, a TV ad) mentions a candidate by name in the 120 days before a presidential primary, or if it advocates for a candidate and if the candidate and Super PAC have coordinated the content of the ad.
The liberals claim that a Super PAC raising and spending money in favor of a Bush candidacy should be treated as coordinated expenditures, making them de facto contributions to his campaign. Candidate is the operative word here, a designation that has always been applied to those who announce they are running for public office.
Democracy 21 President Fred Wertheimer says Mr. Bush should be considered a candidate who is illegally coordinating because if you asked "100 ordinary Americans" if he is a candidate, they will say yes. What a bracing legal standard. What would the same 100 Americans have said about Hillary Clinton in 2013, or Ted Cruz in high school? Where is the limiting principle?
But the Journal's dismissal of the criticism of Bush's questionable PAC coordination ignores the growing number of legal experts who have raised questions about his actions. The New York Times noted that "[s]ome election experts say Mr. Bush passed the legal threshold to be considered a candidate months ago, even if he has not formally acknowledged it." CBS' Bob Schieffer similarly pointed out that it is "pretty obvious" Bush is running for president, even as he "rais[es] huge amounts of money for [his] super PAC." Even conservative blog Brietbart.com criticized Bush's PAC coordination, pointing to "Several campaign finance law experts [who claim] they believe Bush is violating the law."
The Wall Street Journal has previously advocated for doing away with the same laws they're now claiming Bush isn't breaking, again claiming they are "dangerous" and no more than a "political attack ... [as] part of a larger liberal campaign." In reality, the decades-old law crafted in the wake of the Watergate scandals to prevent coordination between independent groups and political candidates has long had support across the political spectrum, including the conservative majority in the Supreme Court's Citizens United decision.
A coalition of 18 groups that advocate for campaign finance reform are calling on broadcast media outlets to devote more coverage to America's broken campaign finance system and the need for reforms, especially as some estimates suggest that spending for the 2016 presidential election could top $10 billion.
On June 4, the groups sent a letter to the heads of the major news networks, calling on them to "take greater action in the future to ensure that Sunday political talk shows and nightly news devote appropriate attention to campaign finance reform." The letter, which was sent to Fox News, CBS News, NBC News, ABC News, and PBS, comes after a series of Media Matters analyses indicated that the crisis of big money in politics -- an issue that is of deep concern to a bipartisan majority of Americans -- was rarely covered by these networks.
The letter went on to explain that increased coverage of money in politics is crucial in the run-up to the 2016 election because of the influx of "dark money," secretive funds given to political nonprofits and super PACs by undisclosed donors. As the groups explained in their letter, dark money "runs counter to American values of accountability and transparency that give voters the information they need to make informed decisions," and substantive coverage of its outsized influence on the democratic process is more important than ever:
The American Legislative Exchange Council (ALEC) has responded to an investigation by Atlanta's 11Alive News Tonight, which exposed millions of viewers to the influence of ALEC's corporate members over the Georgia Legislature.
ALEC, which has a history of blocking press access to its functions, refused to let a news reporter from the station cover a meeting between state legislators, corporate representatives, and lobbyists in late May at a Savannah resort. However, the reporter, 11Alive's Brendan Keefe, talked to former ALEC members to find out more and recorded a conversation with a legislator and lobbyist at a hotel bar who offered details of how the group gives state lawmakers free hotel stays and provides them with corporate-backed legislation suggestions.
ALEC responded to 11Alive's investigation by saying its reporter's questions "caught [the spokesperson] off-guard." The group said it has "welcomed journalists from prominent outlets" to its events in the past, but through its lawyers, denied permission to the station to broadcast video it took of the legislators meeting with members of ALEC representing corporations and lobbying interests.
In fact, ALEC has often hired private security or off-duty police officers to remove unwanted reporters, like Keefe in this instance, from its meetings with legislators. Security guards working at the 2011 ALEC annual meeting in New Orleans physically removed ThinkProgress reporters Lee Fang and Scott Keyes from the hotel in which the conference was being held. In 2013, uniformed Washington D.C. police turned away Washington Post columnist Dana Milbank.
Reporters critical of ALEC are denied even the limited access granted to the handpicked journalists ALEC allows to attend portions of their conferences. As Toronto Star reporter Olivia Ward discovered in 2011, some journalists, along with protestors, are threatened with arrest while trying to cover ALEC conferences:
I'm talking to a fellow hotel guest, Beau Hodai, a journalist from the left-wing magazine, In These Times, who has written probing articles on ALEC. Unlike me, he hasn't enjoyed its co-operation and credentials. His calls have gone unanswered, and he has been turned back by the police and guards who firewall the meeting.
The noise level in the bar rises and so do I. As I say goodnight, Beau is summoned by hotel security and herded away toward the elevator by uniformed police. Why? In Slobodan Milosevic's Serbia, I was evicted from my hotel by machine-gun-toting militias as the Kosovo war began. But in America. . . ?
ALEC and their corporate sponsors have a vested interest in keeping their conferences confidential. In secrecy, lobbyists and lawyers construct model right-wing legislation to be introduced in state houses across the country. These model laws include the controversial "Stand Your Ground" law, which has been used in high-profile cases to defend an individual's use of deadly force. In its investigation, 11Alive reported on legislation that "severely limits who can file asbestos claims against corporations," showing a side-by-side comparison of ALEC's template for the bill, and the nearly identical bill passed by the Georgia legislature in 2007. Minnesota passed a similar ALEC-authored asbestos bill in 2012.
As ALEC's profile has become more public and the unethical implications of its corporate-written legislation have become more obvious, some major companies have quit the group. Yahoo, Facebook, and Microsoft have all left the organization in the last two years. However, the departure of Google may be the most notable as its executive chairman, Eric Schmidt, cited ALEC's climate change denial as Google's reason for leaving (emphasis added):
"The company has a very strong view that we should make decisions in politics based on facts -- what a shock," said Schmidt. "And the facts of climate change are not in question anymore. Everyone understands climate change is occurring and the people who oppose it are really hurting our children and our grandchildren and making the world a much worse place. And so we should not be aligned with such people -- they're just, they're just literally lying."
As the Center for Media and Democracy's Brendan Fischer has reported, ALEC's 2015 agenda is no less controversial despite the loss of a few powerful members. According to Fischer, ALEC's focus this year will be on efforts to stifle the growing minimum wage movement among localities as well as supporting union busting right-to-work legislation.
Beyond continuing to create model legislation for state governments, ALEC has also launched a subsidiary to focus on more city and county legislation. Bloomberg noted that the newly formed American City County Exchange will work to increase privatization of municipal functions by "push[ing] policies such as contracting with companies to provide services such as garbage pick-up and eliminating collective bargaining, a municipal echo of the parent group's state strategies."
Broadcast evening news programs on ABC, NBC, and CBS completely ignored likely Republican presidential candidate Jeb Bush's questionable delay in announcing his campaign while he sidesteps campaign laws and continues coordinating with his super PAC. Despite increasing scrutiny of a strategy that "tests the legal definition of [a] candidate," the nightly news programs have devoted zero coverage to the matter since The Associated Press (AP) first reported on it in April.
While most of the Sunday political news shows ignored accusations that former Florida Gov. Jeb Bush (R) may be unlawfully coordinating with his super PAC, CBS' Bob Schieffer asked the prospective presidential candidate if he was "violating the spirit of the law."
Bush has recently come under scrutiny for coordinating with his super PAC, Right to Rise. As the Washington Post reported, "Democracy 21 and the Campaign Legal Center -- sent a letter to Attorney General Loretta Lynch [on May 27] asking that the Justice Department investigate whether Bush and his PAC 'are engaged in knowing and willful violations of federal campaign finance laws.' The groups are calling on Lynch to appoint an independent Special Counsel to investigate potential violations."
In a May 31 editorial, The New York Times editorial board endorsed the idea and urged the Justice Department to get involved, describing Bush's relationship with Right to Rise as "brazen," and "cynical" and noted that Bush is "obviously" running for president:
Ideally, the F.E.C. should be doing its enforcement job. Given that agency's dereliction, the Justice Department must exercise its authority to enforce the law. The abuses of runaway political money will only grow when candidates believe there's no one to stop them.
During the May 31 edition of Face the Nation, host Bob Schieffer questioned Bush over his questionable PAC coordination. Asserting that it was "pretty obvious" that Bush was running for president, Schieffer pointed to criticism and requests for investigation into his dealings with Right to Rise, asking if he thought he "may be just at least violating the spirit of the law" by coordinating with the group. Bush dismissed Schieffer, claiming that he "wouldn't ever do that" and simply was "trying to get a sense of whether [his] candidacy would be viable or not" prior to deciding if he would officially run for president:
The media have largely continuously ignored that likely Republican presidential contenders in 2016 are using dark money and secretive nonprofit groups to sidestep campaign finance laws. Face the Nation was the only Sunday broadcast network political show to even broach the subject.
In March, Bush gave his "tacit endorsement" to Right to Rise Policy Solutions, a nonprofit organization that allows him to side-step campaign finance laws that cap donations from individual donors and require donations to political action committees (PACs) to be publicly reported, permitting "individuals and corporations" to "give as much as they want while remaining anonymous," according to the Post. The news garnered little media attention at the time, with just a scattering of articles and two segments on broadcast and cable news outlining the dark money connections.
Although there have been several major campaign finance stories this year, so far the media has paid significant attention only to one: the retired postal worker from Florida who landed his gyrocopter on the Capitol lawn to raise awareness about the need for reform -- and the coverage has barely noted his motivations.
On April 15, Doug Hughes landed his gyrocopter on the Capitol lawn "to save our democracy," as he wrote in The Washington Post, because "91 percent of Americans see the corrosive influence of money in our political system as a problem that demands attention." Hughes continued:
It is clear these issues will be among the most important in the 2016 election, when every candidate for any office needs to answer one simple question: Which approaches to reducing money's corrupting influence on our democracy do you support? Journalists, especially at the local level, need to ask tough questions, then report the truth and let people decide.
Sadly, most Americans don't know about [campaign finance reform] solutions or how to engage. That's why I chose civil disobedience, taking 535 stamped letters and my message to the seat of power where the problem is. Big money is a threat to our democracy just as security threats are.
Hughes is right -- according to Bloomberg, "spending by candidates, parties and outside groups and individuals" in the run-up to the 2016 election "may approach $10 billion." Thanks to a series of Supreme Court decisions that have relaxed Watergate-era campaign finance reform laws, it's easier than ever for an elite few to exercise disproportionate influence in the democratic process.
Hughes' landing was marginally successful in getting some media coverage of campaign finance reform in the days following. A Media Matters analysis of the network evening news broadcasts and the Sunday political talk shows found 17 total segments dedicated to Hughes and the gyrocopter landing. But other than a discussion on the April 19 edition of NBC's Meet the Press, none of the Sunday shows or evening news broadcasts dedicated any substantive coverage to the message behind Hughes' protest. Understandably, most of these segments focused on the security issues raised by the fact that Hughes was able to fly undetected into the District of Columbia's no-fly zone, rather than his reasons for his flight in the first place.
In recent months, the Republican attorneys general in West Virginia and Oklahoma have been relentlessly working to block the EPA's proposed carbon pollution standards for power plants, via an ongoing lawsuit, legislation, public relations activities, and Senate testimony. But the media coverage of these efforts has consistently left out a key aspect of the story: These attorneys general have formed what a New York Times investigation described as an "unprecedented, secretive alliance" with the fossil fuel industry against the Obama administration's environmental policies.
In its analysis of an unprecedented change to how the chief justice of the Wisconsin Supreme Court is selected, The Wall Street Journal ignored the significant financial contributions a right-wing group made in support of the move, which would strengthen conservative control of the court before it examines possible illegal campaign coordination between that same group and Wisconsin Gov. Scott Walker (R). Instead, the editorial board focused on the fact that the current chief justice has a lawyer who is on the board of directors of a judicial election reform group founded by George Soros.
On April 7, voters in Wisconsin approved a constitutional amendment that changed how the state supreme court picks its chief justice. For the past 126 years, the longest serving justice on the bench was automatically selected to act as chief justice. After passage of the new amendment, which was supported by Republican lawmakers in the state and boosted by hundreds of thousands of dollars in independent spending from conservative groups, the court itself will now elect which justice they want to serve as chief.
The conservative majority of the court is expected to replace current Chief Justice Shirley Abrahamson, a liberal, with one of their own.
But in an April 9 editorial, the Journal failed to mention the conservative support for the amendment and the influence outside spending had on the outcome of the vote, and instead attacked Abrahamson for filing a lawsuit challenging the constitutionality of the new amendment. The editorial went on to add that her "lawyer is Robert Peck, a member of the board of directors of George Soros's Justice at Stake. The group wants to end state judicial elections and replace them with nominating commissions that allow state bar associations to hand-pick judges."
From the April 2 edition of Courtside Entertainment Group's The Laura Ingraham Show:
Loading the player reg...