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Context of 'April 20, 2011: White House Considers Executive Order Mandating Federal Contractors Reveal Political Donations'

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The press reports that the US Chamber of Commerce and other lobbying organizations are the biggest winners in the controversial Citizens United decision by the US Supreme Court (see January 21, 2010), which allows corporations and labor unions to spend unrestricted amounts of money in support of, or opposition to, federal candidates. The Chamber of Commerce spends more on promoting Republican and conservative candidates than almost any other organization outside of the Republican Party itself. Other trade organizations, which tend to support Republicans, will almost certainly up their spending on behalf of their candidates, or in opposition to Democrats, according to experts interviewed by reporters, as will most corporations.
Unrestrained Spending to Favor Republicans - Democratic lawyer Marc Elias says: “It is a sweeping decision. In one opinion, the Court struck down all bans on corporate independent spending.” GOP lawyer Robert Kelner says that the ruling “will reflect a huge sea-change in campaign finance law. The Court went all the way. It really relieves any restrictions on corporate spending on independent advertising.” Another GOP lawyer, Ben Ginsberg, says: “It’s going to be the Wild Wild West. If corporations and unions can give unlimited amounts… it means that the public debate is significantly changed with a lot more voices, and it means that the loudest voices are going to be corporations and unions.” Former Federal Elections Commission member Brad Smith says, “This case will lead to more spending, I think, in political elections.” Lawrence M. Noble, the former general counsel for the FEC, says a lobbyist can tell a candidate, “We have got a million we can spend advertising for you or against you—whichever one you want.” Political science professor Robert Watson, who has consulted with Democratic campaigns, says: “It’s a game changer. And the last thing we need is for major corporations and nonprofits to have unlimited access to buy their members of Congress.” The New York Times writes: “It is expected to unleash a torrent of attack advertisements from outside groups aiming to sway voters, without any candidate having to take the criticism for dirty campaigning. The biggest beneficiaries might be well-placed incumbents whose favor companies and interests groups are eager to court. It could also have a big impact on state and local governments, where a few million dollars can have more influence on elections.” The National Journal states: “Over the long run, the ruling is likely to favor GOPers more than it does Dems. While it does apply to unions and corporations equally, Elias said the presumption is that corporations have more money to spend.” Major corporations will not openly run their own advertising, Kelner says, but they will funnel millions into trade associations such as the Chamber of Commerce. “If people think that individual companies are going to go out and buy ads, there may be some of that, but for the most part companies are going to flow this money through trade groups and other outside groups,” Kelner says. “This will open the floodgates for money flowing through groups like the US Chamber of Commerce and other associations [that] spend money on political advertising.… There was always a cloud of doubt around outside groups and trade associations, and this lifts those clouds of doubt and leaves behind clear skies.” Former Democratic National Committee (DNC) general counsel Joe Sandler says the ruling may open the door for more attacks on incumbents by corporate and other entities eager to spend money to ease them out. “You will see more sharp-edged, candidate-specific ads on the air closer to the election,” Sandler says. “That could make it more difficult for incumbents to take tough votes in an election year.” [Palm Beach Post, 1/21/2010; National Journal, 1/21/2010; New York Times, 1/21/2010] Think Progress, the liberal news Web site affiliated with the Center for American Progress, writes, “The ruling is a giant win for the US Chamber of Commerce and the big corporations, which tend to donate heavily to Republicans.” [Think Progress, 1/22/2010]
Citizens the Real Losers? - Paul Ryan of the Campaign Legal Center calls the ruling a complete loss for citizens, saying: “[T]he Supreme Court majority declared that corporate speech trumps the rights of American voters to government free of corporate corruption. The Court has nominally upheld campaign finance disclosure requirements applicable to corporations, but I think time will prove that those disclosure requirements are largely ineffective when dealing with contributions.” Brad Ashwell of the Florida Public Interest Research Group calls the ruling a “shocking burst of judicial activism.” Senator Russ Feingold (D-WI) calls the ruling “a terrible mistake,” and says the Court “chose to roll back laws that have limited the role of corporate money in federal elections since Teddy Roosevelt was president. Ignoring important principles of judicial restraint and respect for precedent, the Court has given corporate money a breathtaking new role in federal campaigns.” Feingold and other Congressional Democrats want to pass legislation that would curb the decision as soon as feasible. [Palm Beach Post, 1/21/2010; National Journal, 1/21/2010; New York Times, 1/21/2010]
Republicans Celebrate Victory for Free Speech, Say Decision Will 'Level Out' Spending - But Marco Rubio (R-FL), running for Florida’s open Senate seat, says, “Today’s Supreme Court ruling is a victory for those who truly value the freedoms outlined in our First Amendment.” And Republican consultant Ed Brookover, who represents Republican House candidate Allen West (R-FL), says he believes spending from liberal groups such as MoveOn.org will equal spending by corporations, and “level out” spending for the two parties. [Palm Beach Post, 1/21/2010; National Journal, 1/21/2010]
President Critical of Decision - President Obama speaks out against the decision (see January 21, 2010).

Entity Tags: Joseph Sandler, Bradley A. (“Brad”) Smith, US Supreme Court, Ed Brookover, Brad Ashwell, Ben Ginsberg, Barack Obama, Think Progress (.org), Russell D. Feingold, US Chamber of Commerce, Robert Kelner, Robert Watson, New York Times, Marc Elias, Lawrence M. Noble, Republican Party, Marco Rubio, National Journal, Paul S. Ryan

Timeline Tags: Civil Liberties

Supreme Court Justice Samuel Alito listens to President Obama’s State of the Union address.Supreme Court Justice Samuel Alito listens to President Obama’s State of the Union address. [Source: Renovo Media]President Obama sharply criticizes the recent Citizens United decision by the Supreme Court, giving corporations and unions the right to give unlimited and anonymous donations to organizations supporting or opposing political candidates (see January 21, 2010), during the annual State of the Union address. Obama gives the address to a joint session of Congress, with three Supreme Court members in attendance. “With all due deference to the separation of powers,” Obama says, “last week, the Supreme Court reversed a century of law that I believe will open the floodgates for special interests—including foreign corporations—to spend without limit in our elections. I don’t think American elections should be bankrolled by America’s most powerful interests or, worse, by foreign entities. They should be decided by the American people. And I urge Democrats and Republicans to pass a bill that helps correct some of these problems.” Democrats in the chamber applaud Obama’s remarks, while Republicans do not. In his response, Justice Samuel Alito, one of the five conservatives on the Court who joined in the majority decision, shakes his head and mouths, “Not true, not true” (some lip readers will later claim that Alito says, “That’s not true”). It is highly unusual for a president to so directly criticize a Supreme Court ruling, especially in a State of the Union address. The next day, Vice President Joe Biden defends Obama’s remarks in an appearance on Good Morning America. Biden says: “The president didn’t question the integrity of the court. He questioned the judgment of it. I think [the ruling] was dead wrong and we have to correct it.” Supreme Court expert Lucas A. Powe says, “I can’t ever recall a president taking a swipe at the Supreme Court like that.” Experts say that the closest precedent they can find is President Franklin Roosevelt’s 1937 criticism of the Court in his address to Congress. Yale law professor Jack Balkin says, “The important thing to me is that the president thinks the Citizens United decision is important enough that he would include it.” Reactions are split along ideological lines. Senator Orrin Hatch (R-UT) calls Obama “rude” to criticize the Court’s verdict. Senator Russ Feingold (D-WI) calls Alito’s reaction “inappropriate.” Legal expert Barbara A. Perry of Sweet Briar College says both Obama and Alito were in the wrong, calling the interaction “an unfortunate display for both branches.” White House deputy press secretary Bill Burton says: “One of the great things about our democracy is that powerful members of the government at high levels can disagree in public and in private. This is one of those cases.” Alito refuses to comment. Alito and Obama have a contentious history. As a senator, Obama was one of the most outspoken voices against Alito’s confirmation as a Supreme Court justice (see October 31, 2005 - February 1, 2006), saying then of Alito, “[W]hen you look at his record—when it comes to his understanding of the Constitution, I have found that in almost every case, he consistently sides on behalf of the powerful against the powerless; on behalf of a strong government or corporation against upholding American’s individual rights.” For his part, Alito snubbed the formal visit paid by Obama and Biden to the Court. [New York Daily News, 1/28/2010; Washington Post, 1/28/2010] Months later, Obama’s warning will be proven to be correct, as a media investigation will show the US Chamber of Commerce using foreign monies to fund attack ads and other political activities under the cloak of the Citizens United decision (see October 2010).

Entity Tags: Jack Balkin, Barbara A. Perry, Barack Obama, Franklin Delano Roosevelt, US Congress, US Supreme Court, Samuel Alito, Orrin Hatch, Lucas A. (“Scot”) Powe, Joseph Biden, US Chamber of Commerce, Russell D. Feingold, Bill Burton

Timeline Tags: Civil Liberties

US-Bahrain Business Council logo.US-Bahrain Business Council logo. [Source: US-Bahrain Business Council]The US Chamber of Commerce (USCC), in a methodology made legal by the Citizens United Supreme Court decision (see January 21, 2010), uses foreign-generated funds to disseminate “attack ads” against Democrats running for office in the November midterm elections. The USCC has targeted, among others, Jack Conway (D-KY), Senator Barbara Boxer (D-CA), Governor Jerry Brown (G-CA), and Representatives Joe Sestak (D-PA) and Tom Perriello (D-VA). The USCC, a private trade association organized as a 501(c)(6) that can raise and spend unlimited funds without disclosing any of its donors, has promised to spend $75 million to prevent Democrats from winning in the upcoming elections. The USCC has, as of September 15, aired over 8,000 television ads supporting Republican candidates and attacking Democrats, according to information from the Wesleyan Media Project. The USCC has far outspent any other public or private group, including political parties. The funds for the USCC’s efforts come from its general account, which solicits foreign funding. Legal experts say that the USCC is likely skirting campaign finance law that prohibits monies from foreign corporations being spent in American elections. The USCC has been very active in recent years in raising funds from overseas sources, with such funds either going directly to the USCC or being funneled to the USCC through its foreign chapters, known as Business Councils or “AmChams.” Some of the largest donations come from the oil-rich country of Bahrain, generated by the USCC’s internal fundraising department in that nation called the “US-Bahrain Business Council” (USBBC). The USBBC is an office of the USCC and not a separate entity. The USBBC raises well over $100,000 a year from foreign businesses, funds shuttled directly to the USCC. A similar operation exists in India through the auspices of the USCC’s US-India Business Council (USIBC). The USIBC raises well over $200,000 a year for the USCC. Other such organizations exist in Egypt, Russia, China, Saudi Arabia, Brazil, and other countries, with those nations’ laws making it difficult or impossible for the public to learn how much money is being raised and by which foreign entities. Multinational firms such as BP, Shell Oil, and Siemens are also active members of the USCC, and contribute heavily to the organization. If those firms’ monies are going to fund political activities, the Citizens United decision makes it legal to keep that fact, and the amount of money being used to fund those political activities, entirely secret. It is known that the health insurer Aetna secretly donated $20 million to the USCC to try to defeat the Affordable Care Act (ACA) last year, and News Corporation, the parent of Fox News, donated $1 million to the USCC to use in political activities (see September 30, 2010). The USCC is a strong opponent of Democrats’ efforts to persuade American businesses to hire locally rather than outsourcing jobs to countries such as China and India, and has fought Democrats who oppose free trade deals that would significantly benefit foreign entities. The USCC claims that it “has a system in place” to prevent foreign funding for its “political activities,” but refuses to give any details. [Think Progress, 10/5/2010]

Entity Tags: Joe Sestak, British Petroleum, Barbara Boxer, Aetna, Jack Conway, US-India Business Council, Wesleyan Media Project, US Chamber of Commerce, News Corporation, Royal Dutch/Shell, US-Bahrain Business Council, Siemens, Thomas Perriello, Edmund Gerald (“Jerry”) Brown, Jr

Timeline Tags: Civil Liberties

An image from a ‘Team Themis’ proposal given to the US Chamber of Commerce in late 2010.An image from a ‘Team Themis’ proposal given to the US Chamber of Commerce in late 2010. [Source: Docstoc (.com)]The liberal news Web site Think Progress, an affiliate of the Center for American Progress, reports that it has discovered evidence of a potentially illegal scheme to entrap and destabilize political organizations, including Think Progress, that support President Obama and other Democrats. The scheme, in development since November 2010 at least, centers around the US Chamber of Commerce (USCOC), a large trade organization that makes large secret donations to Republican candidates and organizations (see January 21-22, 2010 and October 2010), and a law firm, Hunton and Williams, hired by the USCOC. According to emails secured by Think Progress, Hunton and Williams is working with a set of private security firms—HBGary Federal, Palantir, and Berico Technologies (collectively called “Team Themis”)—to develop tactics to damage progressive groups and labor unions. Some of the organizations and unions targeted include Think Progress, a labor coalition called Change to Win, the Service Employees International Union (SEIU), US Chamber Watch, and StopTheChamber.com. The last two are small organizations dedicated to exposing some of the secretive practices of the USCOC. One project proposed by Team Themis is an entrapment scheme. The proposal called for the creation of a “false document, perhaps highlighting periodical financial information,” to give to a progressive group opposing the USCOC, and then exposing the document as a fraud, thus undermining the credibility of the organization. Another proposal involved using potentially illegal computer-hacking techniques to create what the group calls a “fake insider persona” to “generate communications” with Change to Win and to undermine the credibility of US Chamber Watch. The proposal actually advocates the creation of two such personas, one to be used “as leverage to discredit the other while confirming the identity of the second.” Together, “Team Themis” asked for $200,000 for initial background research and another $2 million for an active disinformation campaign. It is unclear from the emails whether any of the proposals were accepted, and if the disinformation campaign was ever launched. Think Progress was recently provided with the emails by members of “Anonymous,” an online “hacktivist” community responsible for attacking the Web sites of oppressive regimes in Tunisia and Egypt, along with American corporations that have censored the online information repository WikiLeaks. The emails were secured from HBGary Federal after one of that firm’s executives, Aaron Barr, tried to take Anonymous down. Barr claimed to have penetrated the group and intended to sell the data he collected to Bank of America (BoA) and to US federal authorities. In return, Anonymous hackers penetrated Barr’s email account and published some 40,000 company emails. Barr intended to approach Bank of America, Think Progress writes, because WikiLeaks is believed to have sensitive information about the firm that it intends to publish later in the year. BoA hired Hunton and Williams and other law firms to pursue WikiLeaks. BoA’s legal team also targeted Salon columnist Glenn Greenwald, an outspoken supporter of WikiLeaks, saying that it had plans for “actions to sabotage or discredit” him. The USCOC posts a response to Think Progress on its blog dismissing the report as “baseless attacks.” And prominent liberal blogger Marcy Wheeler (see April 18, 2009) says that the Think Progress report will probably “cause the Chamber of Commerce to rethink the spying work with HBGary it apparently has been considering.” [Berico Technologies, 11/3/2010 pdf file; Think Progress, 2/10/2011] Liberal blogger Brad Friedman, who has spent years covering voter suppression tactics by political organizations, will soon learn that he is targeted by Team Themis. An email sent by Barr and provided to Friedman “focused on me included names, personal information, home addresses, etc. of myself, family members, and a number of other members of VR,” Friedman will write. (Velvet Revolution is an “umbrella group” that includes StopTheChamber.) “Part of the plan included highlighting me as a ‘Tier 1’ player in a sophisticated disinformation/discrediting scheme that relied on high-tech tools developed for the US government’s ‘War on Terror.’ Team Themis’ US Chamber of Commerce plan was to deploy the very same techniques and technology used to track terrorists, terror organizations, and nations such as Iran, against private non-profit political advocates and citizens in the US.” The email also lists the names of people whom Barr clearly believes to be Friedman’s wife and two children (Friedman says the names listed are not family members—he is not married and has no children). The email also lists a Maryland address as Friedman’s home—another error, as Friedman lives in another state. Friedman will write that obviously Barr and his researchers found another, unrelated person named Brad Friedman and learned personal details about that person and his family. Prominent officials such as Ilyse Hogue of MoveOn.org and Robert Weissman of Public Citizen are also listed for “targeting.” [Brad Friedman, 2/14/2011]

Entity Tags: Democratic Party, Change to Win, WikiLeaks, Berico Technologies, Barack Obama, Bank of America, Aaron Barr, US Chamber Watch, Think Progress (.org), US Chamber of Commerce, Service Employees International Union, Ilyse Hogue, Marcy Wheeler, Hunton and Williams, Glenn Greenwald, HBGary Federal, StopTheChamber.com, Robert Weissman, Palantir, Brad Friedman

Timeline Tags: Civil Liberties

The press learns that the Obama administration is considering having President Obama (see January 27-29, 2010) issue an executive order that would force federal contractors to disclose donations over $5,000 to political organizations. Such firms seeking government contracts would be required to disclose contributions to groups that air political ads either attacking or supporting candidates. Both Republicans and Democrats say that if issued, the order would have an immediate effect. Groups such as the US Chamber of Commerce (USCOC), a large Republican donor that has made large undisclosed donations to Republican-supporting candidates and organizations (see January 21-22, 2010 and October 2010), attacks the White House over the considered executive order, saying it proves Obama is using his executive power to punish political adversaries and reward supporters. USCOC spokesperson Blair Latoff calls the proposed order “an affront to the separation of powers [and] to free speech” (see January 21, 2010) that would create a litmus test for companies wanting to work with the federal government. The order, Latoff adds, could mean “prospective contractors that fund political causes unpopular with the government or the current administration may find that they don’t get a contract award due to political discrimination.” Republican senators will raise the same concerns in a letter sent to the White House the next day. Lawyer Jan Baran, who has worked for both the USCOC and Republican interests, acknowledges that the order could curtail fundraising attempts for the 2012 elections. White House officials and Congressional Democrats say the order would prevent the 2012 elections from being taken over by wealthy anonymous donors on both sides of the political aisle. Fred Wertheimer of Democracy 21, a nonprofit group that favors stricter campaign finance rules, says, “The fact that Congressional Republicans may oppose disclosure does not mean that efforts to obtain it are, by definition, partisan.” [United Press International, 4/20/2011; Los Angeles Times, 4/21/2011; New York Times, 4/27/2011] A week later, Bruce Josten, the top lobbyist for the USCOC, will assail Obama and the White House over the proposed executive order, telling a reporter that the organization “is not going to tolerate” what it considers a “backdoor attempt” by the White House to silence private-sector opponents by disclosing their political spending. Josten will even indirectly compare Obama to Libyan leader Mu’ammar al-Qadhafi; citing the Obama administration’s efforts to hasten the deposing of al-Qadhafi, Josten will say of the order: “We will fight it through all available means. To quote what they say every day on Libya, all options are on the table.” White House spokesman Jay Carney will say in response to Josten’s attack, “What the president is committed to is transparency, and he certainly thinks that the American taxpayer should know where his or her money is going.” Josten is joined by the Business Roundtable, a powerful business association made up of a number of chief executives, which will call the proposed order “yet another example of regulatory over-reach,” and will claim the order would increase paperwork and drive up costs for businesses. [Think Progress, 4/27/2011] Lee Fang, a reporter for the liberal news Web site Think Progress, will write that the executive order could have a powerful impact on the USCOC. “[T]he White House’s disclosure rule threatens the entire existence of the Chamber,” Fang will write. “This is because the Chamber only exists to hide the identity of corporations seeking to fight nasty political battles without having their name or brand exposed. As the Wall Street Journal noted, the Chamber’s ‘most striking innovation has been to offer individual companies and industries the chance to use the chamber as a means of anonymously pursuing their own political ends.’ The Chamber’s members include defense contractors, bailed out banks, and other donors likely to be affected by the government contractor campaign disclosure rule.” Fang will also cite a recent plan by the USCOC to sabotage organizations that support Obama and Democratic candidates by using legally questionable tactics such as false entrapment strategies and even computer hacking (see February 10, 2011). The funding for the scheme was never made public. He also cites recent monies secured by the USCOC from foreign entities that, because of the Citizen United decision, could be flowing into US political activities without disclosure (see October 2010). [Think Progress, 4/27/2011] Republicans in Congress will move to pass legislation that would thwart the order, if it is ever issued (see May 26, 2011 and July 15, 2011).

Entity Tags: Barack Obama, Fred Wertheimer, Blair Latoff, Business Roundtable, Jan Witold Baran, US Chamber of Commerce, Lee Fang, Wall Street Journal, Mu’ammar al-Qadhafi, Obama administration, Bruce Josten

Timeline Tags: Civil Liberties

Chris Van Hollen, in an undated appearance on Fox News.Chris Van Hollen, in an undated appearance on Fox News. [Source: Associated Press / Politico]Representative Chris Van Hollen (D-MD) and other prominent Democrats file a lawsuit against the Federal Election Commission (FEC) asking that entity to force the disclosure of political campaign donor information. In 2007, after a Supreme Court ruling (see June 25, 2007), the FEC drastically rewrote its disclosure requirements, creating what Van Hollen calls a “major loophole” that many 501(c)4 entities funded by corporate or labor union donations are using to operate “under a veil of anonymity.” Van Hollen and his colleagues say they want to force wealthy corporations and individuals to disclose who they are and how much they donate to political organizations. Currently, the Citizens United decision (see January 21, 2010) allows such donors to remain anonymous, and the organizations that receive their donations to conceal the amounts they are receiving. Van Hollen cites the 2002 Bipartisan Candidate Reform Act (BCRA—see March 27, 2002) as applying in this instance. In the brief he submits for the lawsuit, Van Hollen writes: “The US Chamber of Commerce, a Section 501(c) corporation, spent $32.9 million in electioneering communications in the 2010 Congressional elections, and disclosed none of its contributors; American Action Network (AAN—see Mid-October 2010), a Section 501(c) corporation, spent $20.4 million in electioneering communications in the 2010 Congressional elections, and disclosed none of its contributors; Americans for Job Security, a Section 501(c) corporation, spent $4.6 million in electioneering communication in the 2010 Congressional elections, and disclosed none of its contributors.” The lawsuit comes almost simultaneously with news that the White House is considering issuing an executive order that would require federal contractors to reveal their donations (see April 20, 2011). Democrats admit that even as they push the lawsuit forward, and President Obama publicly criticizes the practice of secret donations, they, too, are raising undisclosed donations for the various 2012 campaigns. Experts note that in most cases, Democrats’ efforts to raise undisclosed donations are far smaller than efforts by Republicans, and the amounts they are receiving are, so far, much smaller. Fred Wertheimer of Democracy 21, who is leading Van Hollen’s legal team, acknowledges that the lawsuit will not alter campaign finance policy before the 2012 elections, though he says it is possible that the lawsuit could receive a favorable decision and force disclosure while appeals are pending.
Similarities to DISCLOSE Act - Both the lawsuit and the executive order are similar to sections of the DISCLOSE Act, a legislative package drafted by Van Hollen and other Congressional Democrats that was blocked by Senate Republicans from coming to a vote (see July 26-27, 2010). USCOC spokesperson Blair Latoff says the lawsuit and the order comprise a “desperate attempt by the White House and House Democrats to resurrect the corpse of the DISCLOSE Act.” (Law professor Steven D. Schwinn will refute Latoff’s accusation, writing that Van Hollen’s lawsuit in no way seeks to force the DISCLOSE Act into law via the courts.) Like the failed legislation, the lawsuit and the proposed executive order would work to curtail the effects of the Supreme Court’s controversial Citizens United decision, which allows virtually unlimited and anonymous political spending by corporations and other entities. The lawsuit argues that the concealment of donor identities contradicts both the law and the Court’s ruling, citing the following language in the majority ruling: “With the advent of the Internet, prompt disclosure of expenditures can provide shareholders and citizens with the information needed to hold corporations and elected officials accountable.”
Seeks Change in FEC Regulations - The lawsuit specifically challenges an FEC regulation adopted in 2007 that contravened language in the 2002 Bipartisan Campaign Reform Act (see March 27, 2002) that required disclosure of donations of $1,000 or more if the donations were made for the purpose of furthering “electioneering communications.” Another petition filed by Van Hollen’s group asks the FEC to revise a regulation that “improperly allowed nonprofit groups to keep secret the donors” whose funds were being used to pay for so-called independent expenditures in federal elections. [van Hollen, 4/21/2011 pdf file; Los Angeles Times, 4/21/2011; New York Times, 4/21/2011; Steven D. Schwinn, 4/25/2011; Think Progress, 4/27/2011]
'Sign of Weakness' - Bradley A. Smith, a former FEC commissioner and the head of the Center for Competitive Politics, a conservative advocacy group, says of the lawsuit: “This is a sign of weakness by a group that’s afraid they’re going to lose, and lose big. Again and again, you see evidence that their real purpose is to try to shut down their political opposition.” Smith and other conservatives say Democrats want to “chill” free speech. [New York Times, 4/21/2011]
FEC Will Refuse to Consider Accompanying Petition - In December 2011, the FEC will refuse to consider an accompanying petition on a 3-3 vote. [Commission, 12/16/2011; Commission, 12/16/2011] The vote is along partisan lines, with the three Democrats on the commission voting to consider the petition and the three Republicans voting against. The law prohibits the FEC from having a majority of commissioners from either party. [Think Progress, 1/21/2012]
Judge Will Rule in Favor of Plaintiff - In March 2012, a district judge will rule in favor of Van Hollen in the lawsuit (see March 30, 2012).

Entity Tags: Bipartisan Campaign Reform Act of 2002, Americans for Job Security, Barack Obama, American Action Network, Blair Latoff, Bradley A. (“Brad”) Smith, Steven D. Schwinn, US Chamber of Commerce, DISCLOSE Act of 2010, Chris Van Hollen, Fred Wertheimer, Federal Election Commission

Timeline Tags: Civil Liberties

In response to reported discussions by the Obama administration on the possible issuance of an executive order forcing government contractors to disclose their political contributions (see April 20, 2011), Republicans in the House and Senate introduce legislation that would block such an order. Representative Tom Cole (R-OK) already successfully added a rider to a defense authorization bill that would block the order. Cole says he hopes that the White House will rethink the proposed executive order in light of the opposition from Congressional Republicans. “I am hoping they’re having second thoughts,” he tells a reporter. “This is the executive branch trying to legislate and use a very powerful weapon to do it. And not just legislate, but it is the executive branch trying to intimidate, in my opinion.” In the House, Representatives Cole, Darrell Issa (R-CA), and Sam Graves (R-MO) are sponsoring legislation against the order, while in the Senate, Senators Susan Collins (R-ME), Lamar Alexander (R-TN), Rob Portman (R-OH), and Minority Leader Mitch McConnell (R-KY) are introducing similar legislation. The bills prohibit federal agencies from collecting political information from government contractors as a condition for receiving a government contract. Cole says though his amendment is in the defense bill, he wants to ensure that government contractors are able to keep their political expenditures out of the public eye. “This is one of those things you attack from as many angles and avenues as you possibly can, because it is so important,” he says. “This will get less scrutiny in that process, and it’s a lot easier for Democrats in the Senate to avoid or to kill. A bill is a big statement.” Senate Democrats are likely to vote down the bills. Fred Wertheimer of Democracy 21, an advocacy group that stands for stricter campaign finance laws, says the Republican bills are “continuation[s] of abandonment of campaign finance disclosure by House Republicans, which began last year.” Wertheimer is referring to the DISCLOSE Act, legislation that would have forced outside political groups to disclose their donors, but was blocked by Republicans from coming to a vote (see July 26-27, 2010). Conservative donor organizations such as the US Chamber of Commerce (see January 21-22, 2010, July 26, 2010, August 2, 2010, October 2010, November 1, 2010, and February 10, 2011) support the Republican legislation. The Republican-led House Administration Committee has scheduled a hearing on the draft order. [The Hill, 5/26/2011]

Entity Tags: Obama administration, Darrell E. Issa, DISCLOSE Act of 2010, Fred Wertheimer, Mitch McConnell, US Senate, US Chamber of Commerce, Robert Jones (“Rob”) Portman, Sam Graves, US House of Representatives, Lamar Alexander, Susan Collins, Thomas Jeffery Cole

Timeline Tags: Civil Liberties

On a 259-169 vote, the US House of Representatives passes an amendment that would “prohibit the use of funds to implement any rule, regulation, or executive order regarding the disclosure of political contributions.” The amendment to an unrelated bill was introduced by Representative Rodney Frelinghuysen (R-NJ) on June 24, 2011. The amendment is aimed at preventing the Obama administration from implementing any policy or executive order that would force disclosure on the anonymous corporate donors that have spent tens of millions of dollars influencing elections since the Citizens United ruling (see January 21, 2010). Eighteen Democrats join almost every Republican in voting for the amendment. Ian Millhiser of the liberal news Web site Think Progress speculates that many of those voting for the amendment were influenced by a huge corporate public relations and lobbying effort against campaign finance. After the media revealed that the Obama administration was considering issuing an executive order that would force government contractors to disclose their campaign donations (see April 20, 2011 and May 26, 2011), as Millhiser writes, “industry groups responded by ginning up paranoid fantasies claiming that the administration would use these disclosures to create a ‘pay to play’ scenario where only contractors who donate to Democratic causes could receive contracts.” Recent history, however, indicates that mandated disclosure would bring about the opposite effect, Millhiser writes. He recalls the 2008 resignation of Housing and Urban Development Secretary Alphonso Jackson, who was implicated in a huge scandal involving his office’s illegal contracting practices, wherein President Bush’s political opponents were denied government contracts while “personal cronies” were awarded contracts. “Had a disclosure rule been in effect,” Millhiser writes, “it would have been possible to compare the donation patterns of all government contractors against who was awarding them contracts, and systematically uncover examples of political corruption. Transparency is the enemy of corruption—not the means to implement it.” [Washington Post, 5/15/2011; US House of Representatives, 7/15/2011; Think Progress, 7/18/2011]

Entity Tags: US House of Representatives, Ian Millhiser, Obama administration, Rodney Frelinghuysen

Timeline Tags: Civil Liberties

Law professor John Yoo, who during his tenure at the Justice Department wrote memos defending torture and the right of the executive branch to conduct its business in secret (see March 1996, September 25, 2001, September 25, 2001, October 4, 2001, October 23, 2001, October 23, 2001, November 2, 2001, November 5, 2001, and November 6-10, 2001), co-authors an article for the far-right American Enterprise Institute that attacks the Obama administration for considering the idea of an executive order to require government contractors to disclose their political contributions (see April 20, 2011 and May 26, 2011). The article, by Yoo and lawyer David W. Marston, is entitled “Overruling Citizens United with Chicago-Style Politics,” a reference to some of the unsavory and often-illegal political machinations undertaken by Chicago Democrats. The article repeatedly compares the Obama administration to the Nixon administration’s attempts to “use the available federal machinery to screw [their] political enemies,” as Yoo and Marston quote from a 1971 Nixon White House memo. Yoo and Marston say that the Obama administration, in an effort to recoup its losses from the Citizens United decision (see January 21, 2010]), “is making an unprecedented assault on free speech” by considering the executive order and by pushing the DISCLOSE Act (see July 26-27, 2010). (Yoo and Marston claim that the DISCLOSE Act, if passed into law, “would have forced all those doing business with the government to give up their ability to participate in the political process, as is their right under the First Amendment, aside from just voting on Election Day.”) They write: “Under the guise of ‘transparency’ and ‘accountability,’ the order curtails constitutionally protected speech rights and opens the door for retaliation against those not supporting the administration politically,” and go on to observe that in their opinion, this “assault on free speech” (see January 21, 2010 and January 22, 2010) is being joined by “the media [and] defenders of free speech.” Yoo and Marston claim that the Founding Fathers intended for corporations and other entities to be able to involve themselves in politics entirely anonymously, citing the example of Alexander Hamilton, John Jay, and James Madison publishing the Federalist Papers under the nom de plume “Publius.” Indeed, Yoo and Marston write, “disclosure of political contributions may be a prelude to the thuggish suppression of political speech by harassment and intimidation,” and they cite the instances of boycotts, vandalism, and death threats against people in California who donated money in support of Proposition 8, which declared gay marriage illegal. “Mandated disclosure of financial support for a political viewpoint can become the springboard for lawless retaliation against citizens for holding unpopular views,” the authors write. “Disclosure” and “transparency,” the “wonder drugs du jour,” are already “being used to silence core First Amendment speech rights and to threaten America’s long protection of anonymous political speech,” they contend, and claim that “thugs” are attempting to use violence and intimidation to nullify the Citizens United decision, force the issuance of the Obama executive order, and push the Federal Election Commission (FEC) to expand disclosure requirements. Only allowing financial donors to remain secret, the authors say, protects their rights to free speech and political involvement. “[D]isclosure invites retaliation,” they argue; only secrecy can protect free speech. The authors even cite a case brought on behalf of the NAACP, in which the organization was allowed to keep its membership lists secret for fear of attacks on its members or their families by white supremacists. [American Enterprise Institute, 7/20/2011] Ian Millhiser, a legal expert for the liberal news Web site Think Progress, angrily rebuts Yoo and Marston’s claims. Millhiser, referencing Yoo’s opinions issued during his stint in the Bush administration, writes, “If there is anyone in the universe who should think twice before criticizing a government lawyer for enabling a president to break the law, it is John Yoo.” He goes on to criticize Yoo’s legal thinking in the article, noting that the Citizens United ruling held that “disclosure could be justified based on a governmental interest in ‘provid[ing] the electorate with information’ about the sources of election-related spending.” Millhiser writes: “President Obama’s proposed executive order provides the electorate with information about the sources of election-related spending. So Yoo’s entire argument can be rebutted in exactly two sentences.” After rebutting other portions of Yoo and Marston’s arguments, Millhiser concludes, “Yoo’s defense of corporate America’s power to secretly buy elections is weak even by his own tragically incompetent standards.” [Think Progress, 7/22/2011]

Entity Tags: Ian Millhiser, American Enterprise Institute, DISCLOSE Act of 2010, Federal Election Commission, Nixon administration, US Department of Justice, John C. Yoo, David W. Marston, Obama administration

Timeline Tags: Civil Liberties

Bradley A. Smith, the chairman of the Center for Competitive Politics (CCP) and a former commissioner and chairman of the Federal Election Commission (FEC) during the second Bush administration, writes that the Citizens United decision (see January 21, 2010) and the subsequent flood of corporate money into the political campaign continuum (see January 21, 2010, January 21, 2010, January 21-22, 2010, January 21, 2010, January 21, 2010, January 21, 2010, March 26, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, June 23, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 23, 2011, December 1, 2011, January 3, 2012, January 6, 2012, and January 10, 2012) are good for American politics. [US News and World Report, 1/13/2012] According to a 2008 press report, Smith co-founded the CCP in 2006 in order to roll back campaign finance regulations, claiming that virtually any regulation is bad for politics. Smith has refused to reveal the financial sponsors that gave him the “seed money” to start the organization. Smith helped win the landmark SpeechNow case (see March 26, 2010) that allowed for the creation of “super PACs,” the organizations that are primarily responsible for flooding the campaign with corporate money. According to law professor Richard Hasen, Smith and the CCP have worked diligently to bring cases like the SpeechNow case to the Supreme Court so that the conservative-dominated Court can “knock them out of the park.” [Politico, 8/12/2008] Smith now writes: “Super PACs are not an evil tolerated under the First Amendment—they are what the First Amendment is all about. A super PAC, after all, is simply a group of citizens pooling resources to speak out about politics.” He claims that super PACs merely “leveled the playing field” after Democrats and Democratic-supporting organizations consistently outfunded Republican campaigns during elections. Super PACs have kept the presidential campaigns of candidates such as Rick Santorum (R-GA—see February 16-17, 2012) and Newt Gingrich (see December 19, 2011 and January 6, 2012) alive. Smith predicts that Democrats will easily outspend Republicans again once the presidential primary campaign concludes (see Around October 27, 2010), November 1, 2010 and May 5, 2011), but says, “Super PACs, however, will help level the field.” Smith claims that super PACs “disclose all of their expenditures and all of their donors,” and claims that any information to the contrary is wrong, as it is “confusing super PACs with traditional nonprofits such as the NAACP or the Sierra Club.” He concludes: “Super PACs are helping to shatter the old, established order, create more competition, and break the hold of special interests lobbyists—big business actually joined the ‘reform’ community in opposing super PACs in court. Are super PACs harming politics? Of course not. How odd that anyone would think that more political speech was bad for democracy.” [US News and World Report, 1/13/2012] The Citizens United decision specifically allows for donors to super PACs to remain anonymous, despite Smith’s claims to the contrary (see January 27-29, 2010, July 26, 2010, July 26-27, 2010, September 13-16, 2010, September 21 - November 1, 2010, Mid-October 2010, Around October 27, 2010, April 20, 2011, April 21, 2011 and After, July 12, 2011, and November 18, 2011). Republicans have fought to preserve that anonymity (see July 26-27, 2010, May 26, 2011, July 15, 2011, and July 20, 2011). Smith is correct in saying that traditional nonprofit groups must disclose their donors, though many are apparently failing to do so (see October 12, 2010).

Entity Tags: Rick Santorum, Center for Competitive Politics, Bradley A. (“Brad”) Smith, Newt Gingrich, Richard L. Hasen

Timeline Tags: Civil Liberties, 2012 Elections

Bradley A. Smith, the chairman of the Center for Competitive Politics (CCP) and a former commissioner and chairman of the Federal Election Commission (FEC) during the George W. Bush administration, writes a second editorial for US News and World Report defending “super PACs,” the “independent” political entities responsible for infusing millions of dollars into the political campaign system. Smith wrote an editorial in January 2012 defending super PACs, claiming they are the direct outgrowth of First Amendment free-speech rights and are actually good for the campaign system (see January 13, 2012). However, as in his first editorial, Smith makes a number of false claims to bolster his arguments. Such organizations were created in the aftermath of the Supreme Court’s 2010 Citizens United decision (see January 21, 2010) and the following SpeechNow.org decision (see March 26, 2010). He notes, correctly, that until 1974 there were no federal restrictions on super PACs, apparently referring to that year’s amendments to the Federal Election Campaign Act (see 1974), though he fails to note that such organizations did not exist until after the SpeechNow decision. He claims that “[t]here is no evidence that super PACs have led to a greater percentage of negative ads” than in earlier presidential campaigns, though he cites no evidence to that effect. He also claims, as he did in the first editorial, that it is false to claim super PACs “spend ‘secret’ money. This is just not true. By law, super PACs are required to disclose their donors. There are groups that have never had to disclose their donors, non-profits such as the Sierra Club, Planned Parenthood, the NAACP, and the NRA. If you want more disclosure, super PACs are a step forward.” Unfortunately, the Citizens United decision specifically allows donors to super PACs to remain anonymous, despite Smith’s claims to the contrary (see January 27-29, 2010, July 26, 2010, July 26-27, 2010, September 13-16, 2010, September 21 - November 1, 2010, Mid-October 2010, Around October 27, 2010, April 20, 2011, April 21, 2011 and After, July 12, 2011, and November 18, 2011). Republicans have fought to preserve that anonymity (see July 26-27, 2010, May 26, 2011, July 15, 2011, and July 20, 2011). As in the first editorial, Smith is correct in saying that traditional nonprofit groups must disclose their donors, though many are apparently failing to do so (see October 12, 2010). He also claims that super PACs increase competition—“level the playing field,” as he wrote in the first editorial—by allowing Republican candidates to equal the spending of their Democratic opponents. In reality, Republicans have outstripped Democrats in outside, super PAC spending since the Citizens United decision (see Around October 27, 2010, November 1, 2010, and May 5, 2011). Smith bolsters his claim by citing direct campaign spending as offsetting “independent” super PAC spending, such as in the 2010 US House race involving incumbent Peter DeFazio (D-OR), who won re-election even after a $500,000 super PAC-driven effort on behalf of his challenger. DeFazio, Smith claims, “outspent his opponent by a sizable margin and won. Still, for the first time in years he had to campaign hard for his constituents’ support. That’s a good thing.” He cites the presidential campaigns of Republican contenders Newt Gingrich (R-GA—see December 19, 2011 and January 6, 2012) and Rick Santorum (R-PA—see February 16-17, 2012), which have relied on the contributions of a very few extraordinarily wealthy contributors to keep their candidacies alive against the frontrunner Mitt Romney (R-MA), whose own super PAC funding is extraordinary (see June 23, 2011). And, he writes, super PAC spending “improves voter knowledge of candidates and issues. Indeed, political ads are frequently a better source of information for voters than news coverage.” The most important benefit of the two Court decisions and the subsequent influx of corporate money into the US election continuum (see January 21, 2010, January 21, 2010, January 21-22, 2010, January 21, 2010, January 21, 2010, January 21, 2010, March 26, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, June 23, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 23, 2011, December 1, 2011, January 3, 2012, January 6, 2012, January 10, 2012, and January 23, 2012), he writes, “is that they get government out of the business of regulating political speech. Who would say that you can’t spend your own time and money to state your own political beliefs? Vindicating that fundamental First Amendment right is good for democracy.” [US News and World Report, 2/17/2012]

Entity Tags: Newt Gingrich, Bradley A. (“Brad”) Smith, Center for Competitive Politics, Peter DeFazio, Federal Election Campaign Act of 1972, Willard Mitt Romney, Federal Election Commission, US Supreme Court

Timeline Tags: Civil Liberties

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