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Since taking office, President Obama has taken a number of steps in an attempt to reduce what he sees as the undue influence of lobbyists in Washington. The President issued an executive order in January 2009 prohibiting registered lobbyists from serving in an agency they previously lobbied for two years. It included a waiver provision, but the Administration has used it sparingly. Then in addition to restrictions on lobbying for stimulus and economic stabilization funds, the White House issued a restriction on federally-registered lobbyists serving on advisory boards and commissions.
Most recently, in his State of the Union address, the President proposed: limiting campaign contributions of federally registered lobbyists; requiring more details about lobbying contacts on lobbying disclosure reports; and lowering the threshold for becoming a registered lobbyist to below the current 20% of time spent lobbying.
Independent Sector supports the rights of nonprofits to speak out on important issues either through paid staff or consultants who are lobbyists. IS sent a letter (PDF) in May 2009 to the Office of Management and Budget asking that the Administration withdraw or modify an earlier ban on conversations between registered lobbyists and government officials, and offering to work to find alternatives that provide greater transparency while protecting the constitutional rights of individuals and organizations represented by registered lobbyists.
See below for updates on White House lobbying restrictions on stimulus funds and on emergency economic stabilization funds.
Status – New Restriction on Advisory Board Service
In late September, White House Counsel Norm Eisen reported in a blog notice that the Administration is now urging federal agencies and departments not to appoint federally-registered lobbyists to federal advisory boards and commissions. The Commerce Department has already notified those serving on Industry Trade Advisory Committees that members must confirm by October 30 that they are not registered lobbyists if they want to be reappointed to a new term in 2010. Independent Sector will update our members when more information is available.
Treasury releases lobbying rules for Economic Stabilization funds
The Treasury Department released guidance (PDF) on lobbying restrictions on communications regarding Emergency Economic Stabilization Act funds, which tracks the rules released this summer for lobbying for stimulus funds. The rules ban any oral communications while an application for funding is pending and require disclosure of communications with registered federal lobbyists.
Ban on Stimulus Communications Revised
The Obama Administration revised its lobbying restrictions on stimulus spending under the American Recovery and Reinvestment Act (Recovery Act) to apply to all individuals, and not just federally registered lobbyists. In a July 24 memo (PDF), Peter Orzag, Director of the Office of Management and Budget, explained that the prohibition on registered lobbyists’ conversations with federal officials about specific Recovery Act projects has been broadened to apply to any interested party, but the timeframe has been narrowed to the period after competitive grant applications are submitted and before awards are made.
Registered lobbyists will once again be able to have conversations or attend meetings with government officials before an application is filed, but they must complete a form which will be posted on each agency’s website documenting the contact. The July 24 memo also includes answers to frequently asked questions about the lobbying restrictions, and a sample lobbyist contact form that agency officials must complete. See an outline of the revised restrictions below.
Lobbying restrictions and disclosure
In March, President Obama prohibited registered lobbyists from speaking directly with federal officials about specific Recovery Act projects, requiring them to submit all communications in writing. This was modified in a July 24 memo (PDF), issued by OMB Director Peter Orzag. The current restrictions are as follows:
- There are no restrictions on logistical questions such as how to apply for funding, which agencies to contact, what are the deadlines, or similar information.
- Once a competitive grant application has been submitted, executive branch officials may not accept communications on that proposal unless it is in writing. This restriction lasts from the time the application is submitted to the time the awards are made. Any communications during that time period (unless initiated by an agency official) must be in writing and posted on the Internet.
- This restriction on oral communications now covers all persons, not just federally registered lobbyists.
- Internet disclosure is required of all other communications with federally registered lobbyists.* A form must be completed and posted to each agency’s website documenting the contact by identifying the lobbyist, the lobbyist's client, the date of the contact, and a one-sentence description of the topic of discussion.
- According to the March 20 memo, these rules apply to the spending provisions, but not the tax provisions, in the Recovery Act.
*See IS's materials on the Lobbying Disclosure Act to learn who must register as a federal lobbyist. (IS member password required)
The March 20 memo also requires agencies to follow transparent, merit-based criteria in selecting projects to fund. The criteria must emphasize economic recovery and job creation, and, as specified in the Recovery Act, must not allow funding for casinos, aquariums, zoos, golf courses, or swimming pools.
Last Updated: February 5, 2010
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