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Republicans' Lobbying Grip Crumbles After Congressional Shakeup

By Jonathan D. Salant


March 16 (Bloomberg) -- The Republicans' loss of power in Congress is mirrored by a swift reversal of fortune in some key precincts of lobbying influence.

Gone in a matter of months was a years-long effort to build a permanent majority through an alliance with lobby firms and trade groups, which supplied high-paid employment to Republicans. Those lobbyists in turn made lavish campaign donations to the party to help keep it in power.

Instead, as soon as the Republicans lost control of Congress, even as they retained the presidency, lobby shops shook off the vestiges of what was known as the ``K Street Project,'' after the Washington boulevard where many firms are located. One of the highest-profile Republican hires was replaced by a Democrat. One trade group brought in a Democrat -- himself a project target -- to replace its Republican president.

``To coin a phrase, the K Street Project has been consigned to the dustbin of history,'' said Craig Shirley, a Republican consultant.

A case in point is the career path traveled by John Feehery: from chief spokesman for the leader of the House Republican majority to executive vice president of the Motion Picture Association of America and then to his own firm, replaced by a Democrat. Feehery, 43, had been hired by the trade group after the Republican-controlled Congress in 2004 passed tax legislation that California Democratic Senator Dianne Feinstein said would cost the movie industry $5 billion over 10 years.

Glickman Hired

Feinstein, 73, said the provision was designed to penalize the movie industry. The move came after the industry's Washington-based trade group hired Dan Glickman, 62, a former Democratic lawmaker and agriculture secretary, as its new president. The following year, Glickman hired Feehery, an aide to former House Speaker Dennis Hastert.

Similarly, Republicans delayed legislation sought by the Electronics Industry Association after that trade group hired former Democratic Representative Dave McCurdy of Oklahoma in 1998. The House ethics committee later rebuked then-Majority Whip Tom DeLay, a Texas Republican, for trying to pressure the group to hire a Republican.

Last month, McCurdy, 56, succeeded Republican Fred Webber as president of the Alliance of Automobile Manufacturers -- the Washington-based trade group for companies such as Detroit-based General Motors Corp.

Investment Company Institute

Two months earlier, the Investment Company Institute --the Washington-based trade group for mutual fund companies such as Newark-based Prudential Financial Inc. -- brought in Democrat James Hart, 55, to lobby and run its political action committee.

In May 2003, ICI hired Daniel Crowley, general counsel under Republican House Speaker Newt Gingrich. In February of that year, the Washington Post reported that Republicans demanded the group fire Democratic lobbyist Julie Domenick. She left a year later.

Crowley, ICI's chief government affairs officer, said the group wanted a Democrat and talked to Hart before the election.

``If you're always playing down the middle of the fairway, you don't have to worry about which way the political winds may be blowing,'' Crowley said.

The swift turnover may be a boon to Democratic fund-raising efforts. Lawyers and lobbyists were the biggest source of campaign dollars for the 2006 elections, contributing $142 million, according to the Center for Responsive Politics, a Washington research group. While lawyers gave 70 percent of their donations to Democrats, registered lobbyists gave 57 percent of their contributions to Republicans, the largest share since the center started tracking donations in 1990.

Other Hires

Other post-election hires include Bruce Andrews, former aide to Pennsylvania Democratic Representative Tim Holden, as chief Washington lobbyist at Dearborn, Michigan-based Ford Motor Co.; and David Hantman, former chief of staff to New York Democratic Senator Charles Schumer, as vice president of public policy for Sunnyvale, California-based Yahoo! Inc.

``The Democrats control both majorities. You've got to be talking to the majorities,'' said former Democratic U.S. Representative Gerry Sikorski, 58, of Minnesota, a partner with the lawyer-lobbying firm of Holland & Knight.

Officials of Ford and Yahoo said they didn't consider party affiliation. ``You have to work in a bipartisan way,'' Yahoo spokesman Jim Cullinan said.

A leader of the K Street Project, Grover Norquist, the head of Washington-based Americans for Tax Reform, said it is misguided for business leaders to hire Democratic lobbyists.

`Paying for Access'

``What is the interest of the company or trade association?'' Norquist said. ``The only reason to hire a D is because you're paying for access.''

Feehery left the MPAA last month, setting up his own firm. He said one of his clients will be his old employer, the motion picture trade group. His replacement is Seth Oster, 37, a former Feinstein aide who spent years in the film industry.

``This is a good time for me to start my own business so I can have more flexibility to help with the presidential campaign and to pursue other interests,'' Feehery said.

Oster said the trade group, whose members include Burbank, California-based Walt Disney Co. and New York-based Time Warner Inc., still has Republicans and Democrats in top positions.

``The MPAA recruits the best person for the job, period,'' Oster said.

To contact the reporter on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net.

Last Updated: March 16, 2007 00:04 EDT

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