Key players Lobbyists The number of registered Washington lobbyists is substantial. In 2009,
The Washington Post estimated that there were 13,700 registered lobbyists, describing the nation's Capitol as "teeming with lobbyists.". In 2011,
The Guardian estimated that in addition to the approximately 13,000 registered lobbyists, thousands more unregistered lobbyists could exist in Washington. One law firm employs so-called "power brokers" including former Treasury department officials such as Marti Thomas, and former presidential advisers such as Daniel Meyer. and
Lockheed Martin sell extensively to the government and must, of necessity, engage in lobbying to win contracts.
Corporations Corporations which lobby actively tend to be few in number, large, and often sell to the government. Most corporations do not hire lobbyists. When an issue regarding a change in immigration policy arose, large corporations currently lobbying switched focus somewhat to take account of the new regulatory world, but new corporations—even ones likely to be affected by any possible rulings on immigration—stayed out of the lobbying fray, according to the study. One academic analysis in 1987 found that firms were more likely to spend on lobbying if they were both large and concerned about "adverse
financial statement consequences" if they did not lobby. Big banks were "prolific spenders" on lobbying;
JPMorgan Chase has an in-house team of lobbyists who spent $3.3 million in 2010;
Amazon.com spent $450,000 in one quarter lobbying about a possible online sales tax as well as rules about data protection and privacy. Corporations which sell substantially to the government tend to be active lobbiers. For example, aircraft manufacturer
Boeing, which has sizeable defense contracts, pours "millions into lobbying": Corporations have a positive correlation when it comes to spending on lobbying. Research has shown that there is a positive impact in market value equity when it comes to lobbying expenditures. Many corporation spend money on lobbying in hopes that it will lead to increased revenue , reduced costs, and lower risks, and hope to influence policies that will benefit their corporation. Some of the highest paying lobbyist are those who were perviously employed by senators. In the spring of 2017, there was a fierce lobbying effort by
Internet service providers (ISPs) such as Comcast and AT&T, and tech firms such as Google and Facebook, to undo regulations protecting consumer privacy. In 2017, credit reporting agency
Equifax lobbied Congress extensively, spending $1.1 million in 2016 and $500,000 in 2017, seeking rules to limit damage from lawsuits and less regulatory oversight; in August 2017, Equifax's databases were breached and the confidential data of millions of Americans was stolen by hackers and identity thieves, potentially opening up the firm to numerous
class action lawsuits. Major American corporations spent $345 million lobbying for just three pro-immigration bills between 2006 and 2008. Internet service providers in the United States have spent more than $1.2 billion on lobbying since 1998, and 2018 was the biggest year so far with a total spend of more than $80 million. From a review in 2020, major food and beverage corporations spent $38.2 million on
lobbying to strengthen and maintain
big food influence in Washington, D.C.
Unions One report suggested the
United Food & Commercial Workers International Union spent $80,000 lobbying the federal government on issues relating to "the tax code, food safety, immigration reform and other issues."
Other players Other possible players in the lobbying arena are those who might influence legislation: House & Senate colleagues, public opinion in the district, the White House, party leaders, union leaders, and other influential persons and groups. with lobbyist
Heather Podesta at an inauguration party for Barack Obama. Well-connected lobbyists work in Washington for years, know the issues, are highly skilled advocates, Getting access can sometimes be difficult, but there are various avenues: email, personal letters, phone calls, face-to-face meetings, meals, get-togethers, and even chasing after congresspersons in the Capitol building: :: When getting access is difficult, there are ways to wear down the walls surrounding a legislator.
Jack Abramoff explained: :: Lobbyists often assist congresspersons with
campaign finance Since it often takes a long time to build the network of relationships within the lobbying industry, ethical interpersonal dealings are important. A maxim in the industry is for lobbyists to be truthful with people they are trying to persuade; one lobbyist described it this way: "what you've basically got is your word and reputation". And there is anecdotal evidence that a business firm seeking to profitably influence legislation has to pay particular attention to which lobbyist it hires. Increasingly, lobbyists seek to put together coalitions and use
outside lobbying by swaying public opinion. Interest groups try to build "sustainable coalitions of similarly situated individual organizations in pursuit of like-minded goals". In a sense, using these criteria, one could consider
James Madison as having engaged in
outside lobbying, since after the Constitution was proposed, he wrote many of the 85 newspaper editorials arguing for people to support the Constitution, and these writings later became the
Federalist Papers. Lobbyists routinely monitor how congressional officials vote, sometimes checking the past voting records of congresspersons. Lobbying can be a counteractive response to the lobbying efforts of others. One study suggested this was particularly true for battles surrounding possible decisions by the
Supreme Court which is considered as a "battleground for public policy" in which differing groups try to "etch their policy preferences into law". Sometimes there are lobbying efforts to slow or derail other legislative processes; for example, when the
FDA began considering a cheaper generic version of the costly anti-clotting drug
Lovenox, the French pharmaceutical firm Sanofi "sprang into action to try and slow the process." Lobbyists are often assembled in anticipation of a potential takeover bid, particularly when there are large high-profile companies, or a large foreign company involved, and substantial concern that the takeover may be blocked by regulatory authorities. Abramoff began with a fundraising effort to round up "every check" possible. Some lobbyists become specialists with expertise in a particular set of issues, although one study suggested that of two competing criteria for lobbyists—expertise or access—that access was far more important.
Lobby groups and their members sometimes also write legislation and
whip bills, and in these instances, it is helpful to have lawyers skilled in writing legislation to assist with these efforts. Here are parts of the memo which were broadcast on the
MSNBC network.
A growing billion dollar business Since the 1970s, there has been explosive growth in the lobbying industry, particularly in
Washington D.C. By 2011, one estimate of overall lobbying spending nationally was $30+ billion dollars. An estimate of lobbying expenses in the federal arena was $3.5 billion in 2010, while it had been only $1.4 billion in 1998. Lobbying firm
Patton Boggs reported drops in revenue during that year, from $12 million in 2010 to $11 million in 2011. Religious consortiums, according to one report, have engaged in a $400 million lobbying effort on such issues as the relation between church and state, civil rights for religious minorities, bioethics issues including abortion and capital punishment and end-of-life issues, and family issues.
Lobbying as a career While national-level lobbyists working in Washington have the highest salaries, many lobbyists operating at the state level can earn substantial salaries. The table shows the top lobbyists in one state—
Maryland—in 2011. Top power-brokers such as
Gerald Cassidy have made fortunes from lobbying:
Effectiveness of lobbying The consensus is that lobbying generally works overall in achieving sought-after results for clients, particularly since it has become so prevalent with substantial and growing budgets, although there are dissenting views. A study by the investment-research firm Strategas which was cited in
The Economist and
The Washington Post compared the 50 firms that spent the most on lobbying relative to their assets, and compared their financial performance against that of the
S&P 500 in the stock market; the study concluded that spending on lobbying was a "spectacular investment" yielding "blistering" returns comparable to a high-flying
hedge fund, even despite the financial downturn of the past few years. A 2009 study by
University of Kansas professor Raquel Meyer Alexander suggested that lobbying brought a substantial
return on investment. A 2011
meta-analysis of previous research findings found a positive correlation between corporate political activity and firm performance. There are numerous reports that the
National Rifle Association or NRA successfully influenced 45 senators to block a proposed rule to regulate assault weapons, despite strong public support for gun control. The NRA spends heavily to influence gun policy; it gives $3 million annually to the re-election campaigns of congresspersons directly, and gives additional money to PACs and others to influence legislation indirectly, according to the
BBC in 2016. There is widespread agreement that a key ingredient in effective lobbying is
money. This view is shared by players in the lobbying industry. Still, effectiveness can vary depending on the situational context. One view is that large multiple-issue lobbies tend to be effective in getting results for their clients if they are sophisticated, managed by a legislative director familiar with the art of compromise, and play "political hardball". One report suggested that the 1,000 registered lobbyists in
California were highly influential such that they were called the
Third House. Studies of lobbying by academics in previous decades painted a picture of lobbying being an ineffectual activity, although many of these studies were done before lobbying became prevalent in American politics. A study in 1963 by Bauer, Pool, & Dexter suggested lobbyists were mostly "impotent" in exerting influence. But it depends on what is seen as "effective", since many lobbying battles result in a stalemate, since powerful interests battle, and in many cases, merely keeping the "status quo" could be seen as a victory of sorts. What happens often is that varying coalitions find themselves in "diametrical opposition to each other" and that stalemates result. How did the lobbying campaign succeed? Actions taken included: ::#spent $16 million And while money is an important variable, it is one among many variables, and there have been instances in which huge sums have been spent on lobbying only to have the result backfire. One report suggested that the communications firm
AT&T failed to achieve substantial results from its lobbying efforts in 2011, since government antitrust officials rejected its plan to acquire rival
T-Mobile. Lobbying is a practical necessity for firms that "live and die" by government decisions, such as large government contractors such as Boeing. A study done in 2006 by
Bloomberg News suggested that lobbying was a "sound money-making strategy" for the 20 largest federal contractors. The largest contractor, Lockheed Martin Corporation, received almost $40 billion in federal contracts in 2003–4, and spent $16 million on lobbying expenses and campaign donations. For each dollar of lobbying investment, the firm received $2,517 in revenues, according to the report. When the lobbying firm
Cassidy & Associates began achieving results with earmarks for colleges and universities and medical centers, new lobbying firms rose to compete with them to win "earmarks of their own", a clear sign that the lobbying was exceedingly effective. ==Lobbying controversies==