If President Obama has his way, lobbyists will no longer be allowed to talk with administration officials about the financial stimulus package nor about any other issue of concern to the White House. They may still communicate questions about stimulus projects in writing, but within three days federal agencies must post on the Internet any communication they have entertained with a lobbyist. Elizabeth Alexander, press secretary for Vice President Biden who is overseeing the stimulus package, called the rules "a historic breakthrough in ending closed-door lobbyist deal making in favor of promoting the public interest through sunlight."
Presently more than 15,000 registered lobbyists are operating in the District of Columbia, many from plush offices on K-Street. Last year, they spent $3.28 billion soliciting government agencies and officials for hundreds of clients, according to the Center for Responsive Politics.
The Obama administration’s ban on lobbying appears to be unprecedented in the annals of American government. It may even be unconstitutional. By what rationale can citizens--or even foreigners--be disqualified from exercising America’s First Amendment rights? The American Civil Liberties Union called it unfair to single out lobbyists for such restrictions.
David Wenhold, the president of the American League of Lobbyists, complained bitterly: "That to me is clearly saying, 'Your input is not wanted here'." Associated Press reported that Wenhold received hundreds of e-mails from irate lobbyists demanding action and is now seeking a meeting with White House lawyers. He may find it difficult, however, to change the mind of a popular president in view of the American public’s predominantly hostile attitude toward lobbyists in general and lobbyists for big business in particular.
While the rules may discourage administration officials from meeting with lobbyists, the 535 lawmakers on Capitol Hill remain free to open or close their ears to lobbyists. Some interest groups may even employ unregistered lobbyists, since the law requires influence-seeking persons to register only if they spend more than 20 percent of their time lobbying officials.
The Honest Leadership and Open Government Act of 2007, passed shortly after the Democrats regained control of Congress, imposes some limitations on former congressional staffers turned lobbyists, but they still need only wait a year before they can lobby their former bosses and colleagues--usually for much bigger remuneration than as government employees. This week, the self-styled congressional watchdogs of the Sunlight Foundation proposed an online lobbying disclosure system that would require congressional lobbyists to divulge to the public whom they met and what they discussed.
According to Associated Press, top bailout recipients, from Goldman Sachs to Bank of America to JPMorgan Chase, have dispatched more than 100 former congressional staffers and ex-government officials to shape the bailouts to their liking. Goldman Sachs also had former House Majority Leader Richard Gephardt (D-Mo.) lobby his former colleagues in Congress on issues related to the Treasury Department's Troubled Assets Relief Program (TARP). Goldman paid Gephardt's firm $70,000 in the last quarter of 2008 and received $10 billion in TARP funds.
Ex-staffers for at least ten members of the Senate finance committee, including chairman Max Baucus (D-Mont.) and ranking member Charles Grassley (R-Iowa), have lobbied lawmakers on behalf of big financial firms that received billions of dollars in government assistance. Among them are two former chiefs of staff, one now at Credit Suisse, the other at Capitol One which obtained $3.56 billion in TARP funds.
The list of government officials turned lobbyists is long and revealing. On February 21, USA Today reported that after being being ousted last November, at least six Congressmen had already found potentially more lucrative jobs in America’s booming lobbying industry.