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House Spending Panel Is Popular Launching Pad for Lobbyists

By Jonathan D. Salant and Kristin Jensen

June 1 (Bloomberg) -- The House Appropriations Committee, under scrutiny in influence-peddling investigations, is a revolving door for staff members who later go to work as lobbyists trying to influence their former bosses.

At least 46 former appropriations aides registered as lobbyists after leaving their congressional jobs since 1998, according to records compiled by the Center for Public Integrity, a Washington-based watchdog group. That compared with 36 for the House Ways and Means Committee and 34 for the House Energy and Commerce panel.

Appropriations Committee members ``get to decide where tens of billions of dollars go, and they get to decide where that money goes, in many cases, in secret,'' said David Sirota, former spokesman for Democrats on the appropriations panel and author of a book about the influence of corporate money on Congress. ``That creates an environment that can be abused,'' he said.

One lobbying firm that has hired former appropriations staff members is PMA Group of Arlington, Virginia, whose founder, Paul Magliocchetti, and six other employees once worked for the committee. The firm got 66 special projects worth $119 million for its clients inserted into defense spending legislation for the fiscal year that began Oct. 1, according to Taxpayers for Common Sense. The Washington-based watchdog group favors less government spending. PMA Group declined comment.

The Washington-based firm Van Scoyoc Associates Inc. employs three former appropriations staff members and got 18 special projects worth $66 million in the defense measure, according to Taxpayers for Common Sense records.

`Billions of Dollars'

``The revolving door allows these lobbyists to exploit the relationships they have with lawmakers that can hand out billions and billions of dollars,'' said Alex Knott, political editor for the Center for Public Integrity.

Stu Van Scoyoc, president of the firm that bears his name, said former congressional aides give his clients the technical knowledge they need, such as the proper format for a funding request, and can anticipate objections and address them to prevent an allocation from being rejected.

``The appropriations staffers tend to be very much into the details, very much green eyeshades type of people,'' Van Scoyoc said. ``Having people who are currently knowledgeable in programs and in the details of programs is always an advantage.''

Former top-level staff members can lawfully lobby their former committee after a one-year waiting period. Lower-level staff members can lobby immediately after leaving their congressional job.

Lawmakers on the Appropriations Committee control which special-interest projects are inserted into spending measures by a process known as ``earmarks.'' Lawmakers can add such spending anonymously.

Jack Abramoff

Congressional appropriations figure in the scandals involving lobbyist Jack Abramoff, 47, who pleaded guilty to fraud and conspiring to corrupt public officials, and former Republican Representative Randy Cunningham of California, 64, imprisoned after admitting he took $2.4 million in bribes to steer government money to defense contractors.

MZM Inc., a Washington-based national security firm, gave more than $1 million in gifts to Cunningham, who sought millions of dollars in earmarks on the company's behalf, prosecutors said.

The Los Angeles Times reported May 11 that a federal inquiry into House Appropriations Chairman Jerry Lewis, a California Republican, over his connections with a lobbyist for a defense contractor linked to Cunningham. Lewis, 71, denied wrongdoing and said he was unaware of any investigation.

Mollohan

The Wall Street Journal reported April 7 that federal prosecutors are looking at Democratic committee member Alan Mollohan, 63, of West Virginia. The National Legal and Policy Center of Falls Church, Virginia, which backs smaller government, said he had real estate investments with a former aide. The aide worked with foundations that got millions of dollars in U.S. funds with the congressman's help. Mollohan has said he's the victim of a ``politically motivated attack.''

Representative Louise Slaughter of New York, the ranking Democrat on the House Rules Committee, said she expects investigators to question all Republican and Democratic leaders of the appropriations subcommittees about earmarks.

``I would suspect the Justice Department will be looking at it,'' said Slaughter, 76.

One lawmaker who writes spending legislation said former appropriations aides have an advantage in securing funds because they know the process.

``Obviously, they're more knowledgeable because of their experience, but they don't have any undue influence,'' said Representative Harold Rogers, 68, a Kentucky Republican who chairs the appropriations homeland security subcommittee. ``If you know your subject, you're usually more successful.''

Top Staff Members

The Appropriations Committee's top two staff members had left the congressional payroll and worked as lobbyists before joining Lewis's staff. Committee staff director Frank Cushing left the panel in 2003 to lobby for defense contractors, and rejoined it in 2005.

Jeffrey Shockey, an appropriations aide to Lewis from 1991 to 1999, later worked for a lobbying firm in which Lewis's longtime friend, former Republican Representative Bill Lowery of California, is a partner. Shockey became deputy director of the Appropriations Committee staff in 2005.

Former clients of Cushing and Shockey have gained earmarks in defense spending legislation.

The House version of the defense spending measure for the fiscal year beginning Oct. 1 includes a provision setting up a government office to ``contribute to the development of low cost, rapid reaction payloads, space lift and launch control capabilities.''

SpaceX

One supporter of the provision was Space Exploration Technologies, better known as SpaceX, an El Segundo, California- based company for which Cushing registered as a lobbyist. The company, founded by Elon Musk, is building inexpensive rockets to reduce the cost of launching satellites into orbit.

``Yes, I think it ultimately benefits SpaceX,'' Musk said in an e-mail.

Shockey registered in 2000 to lobby for Environmental Systems Research Institute Inc., a Redlands, California-based software mapping company. Lewis obtained $40 million in federal funds for the company in 2003.

Appropriations Committee spokesman John Scofield said the company is the largest employer in Lewis's district, and the congressman has obtained funding for it since 1992, long before Environmental Systems hired any lobbyists. The company also has won many competitively bid federal contracts, Scofield said. The company declined to comment.

Scofield said Cushing and Shockey returned to the Appropriations Committee because they wanted to work for Lewis.

`Sense of Loyalty'

``There's a sense of loyalty in public service that has compelled these guys to come back because they believe in what Lewis is about,'' Scofield said. ``These guys gave up good situations and high-paying jobs to do public service.''

Keith Ashdown, vice president of Taxpayers for Common Sense, said former clients of Cushing and Shockey have an advantage when spending measures are being written.

``They are now signing checks for the people who used to be their paymasters,'' Ashdown said. ``When the most senior staff members on the committee used to work for the people they're doling out the bucks for, there's really no way you can get a system that would reduce conflicts of interest.''

To contact the reporters on this story: Kristin Jensen in Washington kjensen@Bloomberg.net; Jonathan D. Salant in Washington at jsalant@bloomberg.net.

Last Updated: June 1, 2006 00:10 EDT

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