Connect with us

Politics

The swamp gets rich off of Trump upheaval

Published

on

Some of Washington’s biggest lobbying firms raked in unprecedented amounts of cash last quarter. But it’s the upstart firms with ties to President Donald Trump or his administration that have been drowning in lobbying fees, lapping their more established rivals on K Street as Trump’s second term continues to scramble the hierarchy of the influence industry.

Ballard Partners led the charge with more than $25 million in lobbying revenues in the third quarter, shattering the firm’s previous record of $20.7 million the previous quarter. Clients flocked to the firm that once counted White House chief of staff Susie Wiles and Attorney General Pam Bondi as employees.

Ballard’s phenomenal growth — the firm is set to add 5,000 square feet of new office space in the coming weeks, despite previously having moved into larger offices in the last few years — is another indicator of a transformation of lobbying in Trump’s second term. The biggest winners aren’t the massive law and lobbying firms that have pulled together deep benches of bipartisan lobbyists with extensive policy expertise and ties to Blue Light News and party establishment.

Those carefully curated rosters, aimed at insulating firms from the whiplash of transitions in political power, are being supplanted in value by the consolidation of federal authority within the West Wing — and the select group of firms that might be able to get a foot in the door.

“The industry is in an adjustment year as lobbying needs have changed under the Trump administration in a way not normal for a ‘new’ President,” John Raffaelli, a longtime Democratic lobbyist and founder of the lobbying firm Capitol Counsel, wrote in an email.

Ballard is perhaps the biggest winner of all. The firm signed roughly three dozen new clients during the third quarter, including one of Brazil’s top business lobbies, the Swiss watchmaker Breitling, the city of Miami and the Port of Long Beach. It collected six-figure payments from over 80 clients, according to a Blue Light News analysis of disclosures and reported holding three of the most lucrative lobbying contracts on K Street last quarter.

The runner-up last quarter was a decades-old mainstay of the D.C. lobbying world, but one that touts its own ties to the White House.

BGR Group, which employs Trump adviser David Urban and previously employed Transportation Secretary (and acting NASA Chief) Sean Duffy, reported $19.2 million in lobbying revenues in Q3 — up from $17.7 million in Q2 and $11.4 million a year ago.

“Every one of our policy practice areas has got something big going on,” said Loren Monroe, a principal at BGR. He pointed to the firm’s leading health care practice, whose clients include marquee drug lobbies, health systems, pharmaceutical companies, pharmacies, patient groups and providers.

The firm also represents top targets of HHS Secretary Robert F. Kennedy Jr.’s Make America Healthy Again movement, including pesticide companies and giant food conglomerates. It has signed up elite universities whose federal funding has been frozen, crypto firms looking for a light regulatory touch and defense companies seeking business.

BGR leapfrogged two of K Street’s more recent leaders, Brownstein Hyatt Farber Schreck and Akin Gump Strauss Hauer & Feld, which respectively took in $18.9 million and $16.3 million in lobbying revenue last quarter.

Another firm with close ties to the White House, Miller Strategies, jumped into the top five with $14.1 million last quarter, up from $2.9 million a year ago. Miller Strategies is led by Jeff Miller, a top GOP fundraiser who served as one of the finance chairs for Trump’s second inauguration.

When it comes to Trump’s impact on the lobbying industry, the rising tide has lifted most boats.

Brownstein’s third quarter earnings were still a firm record, and while Akin’s numbers were down slightly from the previous quarter, the firm had its best third quarter ever.

Across the top 20 firms by revenue, 14 shops saw their revenue rise by double digit percentages or more, according to the Blue Light News analysis and numbers provided by the firms.

Of the top 20, only Forbes Tate Partners and Capitol Counsel saw their lobbying income decline compared to the same time a year ago — and those decreases were minuscule, coming in at 0.3 percent and 1.4 percent, respectively.

“I think for a traditional bipartisan shop we have managed this well,” said Raffaelli, whose firm reported a 2.3 percent increase in revenues compared to the second quarter.

Another Trump-linked firm that has capitalized is Continental Strategy, which was started in 2021 by former Trump administration official Carlos Trujillo. The firm’s lobbyists include former Trump campaign aides and former top aides to Secretary of State Marco Rubio. Continental reported $8.3 million in lobbying fees in Q3, compared to nearly $400,000 during the same period last year.

A person familiar with the firm’s thinking said that Continental hasn’t needed to do much outbound client prospecting to fuel its boom in business. New business has been driven more by referrals from existing clients, according to the person, who was granted anonymity to discuss business dynamics.

“Our growth isn’t driven by any specific policies or issues — it’s clients seeking us out for our reputation and the talent we have assembled,” Trujillo said in a statement.

Other firms that saw big increases are Checkmate Government Relations, which is led by Trump family friend Ches McDowell; Mercury Public Affairs, a bipartisan shop that’s been in D.C. for over two decades, but which was Wiles’ most recent K Street home before going into the administration; and Michael Best Strategies, which is led by Trump’s first White House chief of staff Reince Priebus.

(For the full third-quarter rankings of lobbying firms, read (and sign up for) POLITICO Influence, our newsletter on all things K Street.)

A tariff lobbying bonanza

The gold rush on K Street comes despite the fact that Trump signed the year’s shining legislative achievement — the reconciliation package permanently extending prized tax cuts, gutting clean energy incentives, slashing funding for safety net programs and unlocking billions of dollars for an immigration enforcement — just four days into the quarter.

The third quarter tends to be sleepier for lobbyists because the city clears out for the August recess. But any concerns about an end-of-summer slump did not come to pass.

“I said to someone the other day that if your lobbyist is telling you that nothing is happening in Washington because of the shutdown or because of gridlock or because of August recess … you are missing the forest for the trees,” Monroe quipped.

Efforts to shape how the megabill is implemented are now underway at the agency level. Beyond that, lobbyists repeatedly cited the frenetic pace of activity in the executive branch — on trade in particular — as one of the top drivers of business last quarter.

Brian Pomper, a partner at Akin, said that Trump’s trade policy “has prompted clients from virtually every industry to seek counsel” from the firm’s roster of trade lobbyists, which includes a top trade official from Trump’s first term along with former House Ways and Means Chair Kevin Brady.

The firm has signed more than two dozen new clients this year to work on trade or tariff issues, disclosures show. They include steel giant Alcoa, Volvo North America, retailers Ralph Lauren and Tiffany & Co., Kimberly-Clark Corporation and Driscoll’s.

Tariffs were mentioned as a specific area of focus in 350 lobbying disclosures last quarter — triple the number of disclosures that listed tariff policy during the third quarter of 2024.

Even though the chaos that marked the initial rollout of Trump’s so-called reciprocal tariffs in the spring has died down somewhat, K Street will be glued to next month’s Supreme Court proceedings to determine whether Trump’s broad tariffs are illegal.

One lobbyist even went so far as to suggest that anxiety surrounding the tariff litigation has exceeded the uncertainty leading up to Trump’s unveiling of the tariffs, dubbed “Liberation Day” by the president.

Not even a government shutdown has managed to dampen lobbying activity.

Though it has snarled efforts to set up meetings for clients across the government, lobbyists are now working to tweak their game plans for convincing lawmakers to use their dwindling floor time to prioritize their clients’ top issues. There’s a whole host of issues vying for that time: appropriations, a defense reauthorization, tax extenders, technical corrections to the reconciliation bill, crypto regulations, health reforms, AI, permitting or another issue entirely.

“We need to look past the shutdown,” said Will Moschella, who co-leads Brownstein’s lobbying practice. “Because that ultimately is going to resolve itself.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Politics

Dems brace for a close finish on Virginia redistricting effort

Published

on

Democrats hope gerrymandering Virginia will give them the edge they need to win back the House. But Tuesday’s special election is proving more competitive than they’d like.

Tight polling and concerns over voter turnout in an atypical April election have many Democratic party strategists and officials preparing for a close finish.

“I always thought this campaign would be close [and] 24 hours out, I believe that to be the case,” Democratic strategist Jared Leopold said on Monday, before the final day of voting.

“Anytime you’re on the ‘yes’ side of a referendum, you’ve got the burden of proof,” he added. “It doesn’t matter what the referendum is, but anytime you’re arguing for ‘yes,’ the other side is going to be arguing for the status quo.”

The party anticipated its campaign to redraw the state’s congressional maps would be boosted by its massive war chest and a favorable political environment that helped elect Gov. Abigail Spanberger last November. If approved, the aggressive partisan gerrymander could deliver Democrats a 10-to-1 seat advantage in Virginia, which amounts to a net pickup of as many as four House seats.

“I think it was always going to be close,” said another Democratic strategist, granted anonymity to speak candidly. “One side is giving [President Donald Trump] power and the other side is doing a reform that a lot of them don’t really want to do. That’s your choice.”

The election will serve as a test of whether voters in the light blue state will set aside long-standing distaste for partisan gerrymandering to counter a redistricting fight set in motion by Trump last year. With primary elections already underway, this is one of Democrats’ last shots at offsetting or even overcoming the gains Republicans made in Texas and elsewhere before November.

If the ballot referendum fails, it would be an early embarrassment for Spanberger as governor and a high-profile loss for a Democratic Party that has cast Trump’s efforts in existential terms as “election rigging” that undermines American democracy.

The campaigns have drawn heavyweight national involvement from former President Barack Obama and House Minority Leader Hakeem Jeffries, among others, who have campaigned on behalf of Virginians for Fair Elections, which is leading the “yes” effort. On the Republican side, former Gov. Glenn Youngkin has been a vocal critic of the measure. And, after largely staying on the sidelines, Trump made a late push Monday night for the “no” campaign, joining Speaker Mike Johnson for a tele-rally where he sought to remind voters of the stakes.

“Tomorrow, your commonwealth has an incredible, and really, an important election in every sense of the word that will have major consequences for our entire country this November,” Trump said. “This is really a country election. The whole country is watching.”

Public polling suggests the race will hinge as much on persuading voters about the need for new maps as on mobilizing them to the polls for an out-of-cycle election.

A Washington Post-Schar School poll conducted last month shows the “yes” campaign leading by roughly five percentage points among likely voters. That same poll found Republicans are slightly more likely than Democrats to say they planned to vote in the special election or already had — 85 percent to 79 percent.

Many Democrats say they remain cautiously optimistic. There has been an uptick of early voting in recent days, particularly in counties in Northern Virginia, which tend to be blue-leaning. Overall, more than 1.3 million people cast early ballots, according to the Virginia Public Access Project, not much lower than the roughly 1.48 million who cast early ballots in 2025, when Spanberger was running.

“I don’t think there’s been an alteration to whether or not people like gerrymandering,” said John Bisognano, president of the National Democratic Redistricting Committee. “What I do think is, if this is the only way that we can keep the U.S. House of Representatives as a representative body for this nation, people are willing to do it.”

Virginia Democrats have also recently put pressure on the governor to more aggressively campaign on behalf of the “yes” effort and be more outspoken about the stakes of the special election. She was on the campaign trail over the weekend urging voters to back the measure.

“Ultimately, I do think this is more of a persuasion election than a turnout election, and so it’s a test to see if [the] ‘no’ campaign has done an effective job reaching voters,” said Noah Jennings, a Virginia-based Republican strategist unaffiliated with the “no” campaign.

Complicating Democrats’ pitch are two factors: The Virginia Supreme Court could still nullify the redistricting effort after the April election. And, in 2020, voters approved a constitutional amendment that established a bipartisan redistricting commission seeking to limit the partisan redrawing of maps.

That history has given the “no” campaign a potent line of attack.

Conservatives have painted Spanberger as a flip-flopper on redistricting and slammed her for caving to pressure from national Democrats. GOP-aligned groups have also sent out misleading mailers or run ads using past comments opposing gerrymandering to suggest that both she and Obama are “no” votes on the ballot measure.

“The Democrats have deployed over $60 million to rig Virginia’s congressional maps and yet the referendum is extremely close — as all sides acknowledge,” said Mike Young, of Virginians for Fair Maps, the group encouraging voters to vote against redistricting. “That didn’t happen by accident or dumb luck.”

Jennings said if the “no” effort wins on Tuesday, “that’s a very clear showing that there’s a line that you cannot cross.”

“Virginia does have that larger middle that does move independently, and I think those people don’t like the gamesmanship, and they don’t like it from either side,” he said.

The “yes” campaign says it’s unfazed.

“While Republicans have spent nearly $34 million flooding this race with MAGA misinformation, the YES Campaign has been doing the work — knocking over 600,000 doors, communicating directly with Virginians, organizing in every corner of the state, and driving historic early vote turnout,” said Dan Gottlieb, a spokesperson for Virginians for Fair Elections.

The outcome of Tuesday’s election could reverberate well past Virginia. After Trump pushed to redraw congressional boundaries in Texas last year, the fight escalated into a tit-for-tat battle, with each party trying to lock in an advantage ahead of November.

In California last year, voters overwhelmingly approved new congressional districts, offsetting GOP gains out of Texas. Florida could redraw its own maps as soon as next week, which could counter any Democratic gains in Virginia — should the ballot measure pass.

Continue Reading

Politics

Dueling PACs gear up for GOP primary wars over immigration

Published

on

The GOP’s escalating infighting over immigration now has a pair of PACs lining up millions of dollars on opposing sides of Republican primaries across the country.

The dueling pledges turn a congressional fight over Rep. Maria Elvira Salazar’s (R-Fla.) Dignity Act into an electoral proxy war between hardliners and moderates over how far the Republican Party should go on immigration reform. It’s putting the bill’s 20 House GOP co-sponsors in the spotlight.

The Homeland PAC, backed by immigration-restrictionist Republicans, launched last week in an effort to primary some of those co-sponsors. Meanwhile, American Business Immigration Coalition Action, a pro-immigration group, secured $1.2 million to protect them through its Building America’s Economy PAC and hopes to raise $5 million in total, according to plans first shared with Blue Light News.

The Dignity Act, a bipartisan bill, has faced an onslaught of criticism from conservative MAGA influencers and allies of President Donald Trump, who view it as a nonstarter. While the bill doesn’t create pathways to citizenship, it would allow millions of unauthorized immigrants to eventually gain work permits and remain in the U.S. legally.

Republicans like battleground Reps. Gabe Evans (Colo.) and Brian Fitzpatrick (Pa.) have signed onto the bill. But critics pan it as “amnesty” and signal that the future of the Republican Party hinges on this debate.

Donald Trump is not going to be around forever,” said Ryan Girdusky, the GOP strategist behind Homeland PAC. “The goal is to focus and to put our efforts into the future, and make sure Republicans know that the demand for stronger borders and for reforms to legal immigration and illegal immigration means something. We are not going to roll over and go back to business as usual.”

The clash is playing out as the White House recalibrates its own message on immigration amid plummeting public perception. The administration has shifted away from using the phrase “mass deportations” in public messaging and says it is focusing on deporting the “worst of the worst.”

“Extreme-right internet influencers have escalated their attacks, and we want to ensure the leadership on commonsense immigration reform are protected,” said Rebbeca Shi, CEO of ABIC Action, whose PAC is seeking to defend Republican co-sponsors of the Dignity Act.

Salazar has defended her bill, saying it offers workers “dignity.” But former Trump adviser Steve Bannon called it the “screw American workers” bill. Conservative pundit Megyn Kelly said the bill “is not going to go over well with the GOP base, with the America Firsters.” And conservative members of Congress, including Sen. Mike Lee (R-Utah) and Rep. Brandon Gill (R-Texas), slammed the bill as a betrayal to Trump’s base.

Girdusky, whose Homeland PAC is dedicated to “ending the career of every Republican who supports amnesty and sells out the American people on immigration,” won’t reveal which specific lawmakers he’s targeting or how much money he plans to spend. Several of the Dignity Act’s cosponsors are retiring or represent competitive districts, but Girdusky said his group will focus on those in safe-red seats with primary challenges.

“If any of these members have a change of heart and say, ‘Wow, this is actually a terrible bill for American workers and for the border and enriches human traffickers, I’m going to drop my support of it,’ I’m not going to challenge them in a primary,” he said.

Several hardline immigration groups have jockeyed for influence with the Trump administration, hoping to convince the president to keep his promise to enact the largest deportation initiative in history. But leaning into such an approach risks turning off voters, many of whom disapprove of the president’s handling of immigration so far.

New results from The POLITICO Poll shows that Americans’ views of Trump’s deportation campaign remain broadly negative in the three months since its enforcement surge in Minneapolis. Half of Americans, including one quarter of Trump’s 2024 voters, said his deportation campaign is too aggressive.

Shi said her group will defend the Dignity Act’s cosponsors — both Republicans and Democrats — in primaries, as well as Republicans who voted to reinstate temporary protected status for Haitians last week. She believes signing off on a bipartisan immigration reform bill like the Dignity Act would be a smart political move for the White House ahead of the midterms.

“The White House is very sensitive to the polling on this, and the numbers haven’t changed since Minneapolis,” Shi said. “That’s why the next logical step to win in November is to actually have solutions.”

Continue Reading

Politics

Trump makes last-minute plea for GOP to ‘stick together’ on key surveillance powers vote

Published

on

Trump makes last-minute plea for GOP to ‘stick together’ on key surveillance powers vote

In a Truth Social post, the president sought to settle infighting between GOP lawmakers over the Foreign Intelligence Surveillance Act…
Read More

Continue Reading

Trending