OMB Watch, along with religious and public policy organizations, sent President Barack Obama a letter on the anniversary of the Executive Order establishing the White House Office of Faith-Based and Neighborhood Partnerships. The groups asked Obama to, "take additional actions to prevent government-funded religious discrimination and protect social service beneficiaries from unwelcome proselytizing."
The letter details specific proposals to protect civil rights in federally funded social services, including banning employment discrimination based on religion in tax-funded projects. The letter reminds Obama that as a candidate, he promised to reform the faith-based initiative, but has kept in place various rules and executive orders put in place during the Bush administration.
However, Obama's speech at the National Prayer Breakfast claimed otherwise, saying that the administration has, "turned the faith-based initiative around." As the Washington Post also reports, "faith leaders across the ideological spectrum -- including some Obama allies -- say the operation may be more about window dressing than results."
The joint letter states; "We urge you to act now to restore the constitutionally-required safeguards and civil rights protections governing partnerships between government and religiously-affiliated institutions standard operating procedures that had been largely in place for decades prior to the creation of the Faith-Based Initiative."
(Amanda Adams 02/04/10; 0 comments)In 2002, while working a polling site in Selma, Alabama, during a state senate race, I remember vividly how proud I felt to be participating in our democratic process. Being in the very city where the value of voting and the right to vote was literally beaten into the consciousness of the American people, had a profound and lasting impact on me.
The right of citizens to vote is not to be taken lightly; it is an essential right and is the highest form of exercising civic responsibility. It is what we are supposed to do as citizens of this country, and being in Selma reinforced that view for me. In spite of or because of the many people that engaged in invaluable efforts – and sometimes paid with their lives – to ensure that all Americans could vote, it is our responsibility to participate in this process.
For much of the first decade of the 21st century, however, those lessons were lost as state governments and even the federal government actively sought to suppress the vote and disenfranchise millions of Americans. In late January, the situation for our democracy got even worse.
On Jan. 21, the U.S. Supreme Court ruled that corporations can spend unlimited amounts of money on political campaigns as long as they don't formally "coordinate" with candidates or political parties. American politics is already dominated by money. The amount of money that will now be available will be astronomical and could easily drown out the voice of the average American voter. The potential to unbalance the scales and infringe on the right of all Americans to have their voices heard through the principle of "one person, one vote" presents a clear and present danger to our democracy.
Corporations and their allies may even outspend political parties in seeking to influence policy and the whole of the political discourse. The most recent example: according to the Center for Responsive Politics, the U.S. Chamber of Commerce and its national subsidiaries spent $144.5 million in 2009, far more than the Republican National Committee and more than double the expenditures of the Democratic National Committee.
In 1971, Marvin Gaye wrote and released one of the most powerful albums ever made – What’s Going On. It was a simple question about the events of the time, and his expression about those events transcended time. Thus, I use it now. What's going on?
The Citizens United decision, written by Justice Anthony Kennedy, removes limits on so-called "independent expenditures" that are not coordinated with candidates' campaigns. It leaves in place a ban on direct contributions to candidates from corporations and unions, but it allows for unlimited donations to flow to some nonprofit corporations – 501(c)(4)s, 527s, and PACs – to use to influence elections in a partisan manner. Justice Anthony Kennedy, using what some call "aggressive intervention" or "judicial activism," said that political speech is "indispensable to decision making in a democracy, and this is no less true because the speech comes from a corporation rather than an individual." So now corporations are to be treated the same as individual American citizens? What's going on?
The five-justice majority also struck down part of the landmark McCain-Feingold campaign finance bill that served to regulate union- and corporate-paid issue ads in the closing days of election campaigns. Advocates of responsible government, campaign finance reform, and those organizations that promote civic engagement are rightfully concerned and dismayed that the ruling against the limits will be tantamount to selling our elections to the highest bidder. What's going on?
This Supreme Court ruling has the potential to drown out the voice of "We the People." A strong response to the Court's ruling is necessary and puts 501(c)(3) nonprofit organizations in a critical position to ensure that their constituents’ needs and concerns aren't lost in a deluge of corporate dollars. Otherwise, I fear all we are left with is the question, "What's going on?"
(Lee Mason 02/04/10; 0 comments)
Earlier this week Norm Eisen, special counsel to the president for ethics and government reform, wrote a blog post defending President Obama's call for legislation restricting foreign corporations from getting involved in federal elections. As evidence, Eisen references news reports that discuss a lobbying campaign on behalf of subsidiaries of foreign corporations. "All of this demonstrates why the President was right to criticize the Supreme Court’s recent decision in Citizens United – and why he is also right to call for reform of the lobbying laws, including tough new rules on lobbyist disclosure, that build on the dramatic steps he has already taken in his first year in office to change Washington."
"A strong legislative response is required given the stakes: Americans' control over their own electoral process. That is why the President is working with Congressional leadership to move rapidly to pass legislation that protects our politics from undue special interest influence."
Congressional action has already begun, with ten bills introduced in the House and two in the Senate in response to Citizens United. The Senate Rules Committee held a hearing yesterday (Feb. 2). In the House, the Committee on House Administration and the Judiciary Subcommittee on the Constitution, Civil Rights, and Civil Liberties both held hearings.
Further, beyond the subject of foreign corporations, comprehensive lobbying reform is tied into responding efficiently to Citizens United. Eisen notes that during the State of the Union, Obama called for other proposed changes. These include limits on the contributions lobbyists may bundle or make to candidates, increased lobbyist disclosure rules, and online disclosure of all earmark requests. This White House fact sheet has some more details.
The President's efforts are commendable, and there is still work to be done on needed transparency. However, a column in the Washington Examiner notes a bit of hypocrisy. "More than 40 former lobbyists work in senior positions in the Obama administration, including three Cabinet secretaries and the CIA director. Yet in his State of the Union address, Obama claimed, "We've excluded lobbyists from policymaking jobs."
(Amanda Adams 02/03/10; 0 comments)Almost two years ago, a 527 organization called SpeechNow.org, asked for a court ruling that would have blocked the Federal Election Commission (FEC) from enforcing limits on contributions to the group. On Jan. 27, the Court of Appeals for the D.C. Circuit heard oral arguments in the case. The court must consider whether the group should be subject to an annual limit on donations from individuals and comply with disclosure requirements.
SpeechNow.org wants to collect unlimited contributions to help elect candidates who support free political speech. They argue that prohibiting contributions of more than $5,000 per year is an unconstitutional violation of free speech and association rights. After the group was initially formed in 2007, the FEC said it would have to register as a political committee, which requires contribution limits and prohibits corporate contributions.
News reports indicate that FEC attorney David Kolker faced skeptical questioning from appeals court judges as he sought to defend the contribution limits. The judges supposedly seemed sympathetic to SpeechNow.org's argument. The Associated Press reports that one of the judges told the lawyer representing the FEC; "You don't seem to value the First Amendment very highly."
According to BNA Money and Politics ($$), Kolker noted that the Citizens United ruling does not change limits on contributions to political parties. "Similar restrictions on non-party groups also should remain, the FEC lawyer said, because such groups can act as 'shadow parties' and be used to circumvent limits on contributions to candidates."
The judges suggested that since, "the Citizens United case established that independent expenditures do not corrupt candidates and thus cannot be limited under the First Amendment. It is not a long leap, the judges suggested, to assume that groups making only independent expenditures, like SpeechNow.org, cannot have their funding sources limited."
However, as the Supreme Court upheld disclosure requirements, judges in this case also seemed doubtful when SpeechNow.org argued that the group should not have to provide reports of its finances to the FEC. Rather, they contend that reports filed with the Internal Revenue Service provide enough public disclosure.
SpeechNow.org highlighted the recent EMILY’s List decision, which struck down regulations limiting donations to nonprofit political action committees that are used for campaign activity. The case also questioned the constitutionality of limits on contributions to independent political committees even though they were not challenged in the lawsuit.
(Amanda Adams 01/29/10; 1 comment)During President Barack Obama's State of the Union address, he said he came to Washington "to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve. [. . .] That's why we've excluded lobbyists from policymaking jobs, or seats on federal boards and commissions." However, as a group of nonprofits have recently noted, in the process of attempting to limit the influence of special interests, the administration has successfully "[excluded] the voices of citizen- and community-based organizations."
A coalition of thirteen nonprofit organizations, including OMB Watch, sent President Obama a letter requesting changes in the executive order issued last year restricting lobbyists from jobs in the administration. The letter details the current ban as well-intended, but imperfect. While the order excludes registered lobbyists that work for nonprofits for example, "the vast majority of 'special interest' insiders like corporate executives and their public relations and legal advisors" continue to exercise the same influence as before.
The Washington Post highlights an example; "Caroline Smith Dewaal, the director of food safety at Center for Science in the Public Interest, a lawyer and nationally known food safety expert who has spent 20 years working on policy and trade issues. But Dewaal's nomination came to a halt in August because she was a registered lobbyist, which violated the administration's policy against hiring lobbyists."
The letter stated, "Using it [the Lobbying Disclosure Act] to restrict public service has the perverse result of decreasing transparency and driving real influence peddlers into the shadows and out of the sunlight. By using the LDA, the Ethics Order is broadly under-inclusive for its purposes." Further, the Citizens United v. FEC decision, "has increased the urgency of such actions."
"The solution should focus on issues like campaign finance reform and the disproportionate influence that large financial interests have over our nation's politics and public policies."
Despite, the unintended consequences of the policies instituted last year, Obama should be applauded for discussing during the State of the Union his plan to expand lobbyist transparency. Yet, the focus should not remain solely on federally registered lobbyists.
Obama announced, "It's time to require lobbyists to disclose each contact they make on behalf of a client with my administration or with Congress." He also put forth a proposal to limit how much lobbyists can contribute to candidates for federal office. "It's time to put strict limits on the contributions that lobbyists give to candidates for federal office." Such changes must be crafted so that many can not simply steer clear of federal disclosure requirements.
(Amanda Adams 01/28/10; 0 comments)Almost a week has passed since the Supreme Court issued the very significant ruling in the Citizens United case. There has been nonstop commentary and discussion of the possible ramifications. During a news conference, Senator Chuck Schumer (D-NY) and Rep. Chris Van Hollen (D-MD) announced plans to hold hearings and introduce legislation to curtail the effects of the decision. One suggestion from the lawmakers would require shareholders to vote before a corporation could spend money in elections.
Another option would prohibit corporations that do business with the federal government from using corporate funds to make independent expenditures. For example, contributions or expenditures could be limited for companies that have contracts or subcontracts with the government, or government grantees, and their affiliates. Congress may try to ban corporate contributions to nonprofits that engage in election communications, or corporations could be required to disclose contributions made to another incorporated entity (such as a 501(c)(4)) for the purposes of making a political expenditure. Other options include strengthening disclaimer and disclosure rules, requiring companies to more clearly identify themselves in the ads.
In addition to those already introduced, such as legislation to create an optional public financing system for congressional elections (the Fair Elections Now Act), more legislative responses to the ruling are still being formulated.
In the House HR 4522 has been introduced to, "apply the ban on contributions and expenditures by foreign nationals to domestic corporations which are owned or controlled by foreign principals." Under current law, election spending by non-U.S. persons and entities is prohibited and is unaffected by the ruling. However, some suggest that the prohibition on campaign expenditures by foreign nationals could be vulnerable. According to Politico, President Obama will urge Congress during the State of the Union address to pass legislation restricting foreign corporations from getting involved in federal elections.
Politico, also reports that, "the White House doesn't appear to consider the FEC or the public financing overhauls as immediate priorities. Nor does it appear likely to embrace a public financing system for congressional campaigns."
A more problematic legislative prospect would tighten rules prohibiting outside groups from coordinating ads with candidates. Corporations may now directly advocate for the election or defeat of federal candidates, as long as they do not coordinate their efforts with campaigns or political parties. However, the Federal Election Commission (FEC) has not yet finalized a definition of coordinated expenditures. The FEC is currently undertaking a rulemaking to reconsider what precisely constitutes coordination.
Before the Court even issued its ruling Rep. Alan Grayson (D-FL) introduced five bills in anticipation of an unfavorable decision. For example, the Corporate Propaganda Sunshine Act, H.R. 4432, would require public companies to tell the Securities and Exchange Commission when they spend to influence public opinion on any matter other than the promotion of their services. The Ending Corporate Collusion Act, H.R. 4433, would apply antitrust laws to a political committee established and run by a corporation.
For more on what nonprofits and political leaders are doing to address the Court decision, read this latest Watcher article.
(Amanda Adams 01/27/10; 0 comments)The long awaited decision in Citizens United v. the Federal Election Commission was issued today. With a 5-4 vote, the Supreme Court overturned a 20-year ruling that corporations can be prohibited from using money from their general treasuries to pay for their own campaign advertisements. Justices also struck down parts of the Bipartisan Campaign Reform Act that prohibited unions and corporations from running issue ads before primary and general elections.
OMB Watch is disappointed in today's Court decision and fears it will only drown out the voice of citizens and advocacy organizations. Currently, it is uncertain what this ruling means for nonprofit corporations. We may see an influx of money being channeled through tax-exempt, 501(c)(4) or 501(c)(6) nonprofit corporations.
The opinion applies only to independent expenditures, and leaves in place a prohibition on direct contributions to candidates. Justice Anthony Kennedy wrote in the majority opinion; "The censorship we now confront is vast in its reach." However, prior to today's decision corporations were not stripped from political speech entirely during campaigns. Rather, corporations and unions could pay for federal election spending through political action committees. The ruling will certainly alter corporate and union spending on elections in future campaign seasons.
Dissenting, Justice John Paul Stevens said, "The court's ruling threatens to undermine the integrity of elected institutions around the nation."
Importantly, the ruling upheld the disclosure and disclaimer requirements. In addition, it does not affect bans on direct contributions from corporations to federal candidates or national party committees.
As a result of the Court's ruling, corporations could now fund independent broadcasts messages (radio, tv, internet, mail) expressly advocating the election or defeat of candidates. However, corporate sponsorship of the messages must be disclosed.
For more, the Washington Post online has a page aggregating media coverage. The New York Times calls the decision "a doctrinal earthquake."
Observers fear that now the cost of winning a seat in Congress will drastically increase. Organizations are working hard to pass legislation to provide public financing for congressional candidates, specifically the Fair Elections Now Act.
Clearly, rewriting campaign finance law, as it applies to corporate (including nonprofit corporations) and union independent expenditures will cause some upheaval of future campaigns. We are currently reviewing the 176-page opinion.
(Amanda Adams 01/21/10; 0 comments)The Social Innovation Fund, a program of the Corporation for Community Service and the Obama administration’s major philanthropic effort, has issued a Proposed Notice of Funds Available (NOFA) and a request for feedback. SIF will award up to $50 dollars in federal funding during Fiscal Year 2010.
America Forward, the coalition of nonprofit organizations that made the policy recommendations that led to the Edward M. Kennedy Serve America Act, which authorized the program, says the SIF is "intended to increase the impact of social entrepreneurs and innovative nonprofit organizations by scaling proven programs and investing in promising new ideas."
According to the NOFA, in "FY 2010, SIF awards will be made to a select number of grantmaking intermediaries (or eligible partnerships) focused on improving measurable outcomes in the following priority areas: increased economic opportunity; preparing America’s youth for success in school, active citizenship, productive work, and healthy and safe lives; [and] promoting healthy lifestyles and reducing the risk factors that can lead to illness."
Any feedback or comments are due on January 15.
(Lateefah Williams 01/11/10; 0 comments)
Over the past several decades, a pernicious use of the justice system has developed that poses a serious threat to First Amendment rights. Strategic Lawsuits Against Public Participation, or SLAPPs, are meritless lawsuits that individuals and businesses bring against others who speak out on public issues or communicate with their government. For example, a citizen who speaks out about the threat of contamination from a local factory, or an organization that petitions Congress to strengthen consumer protections laws may be sued for their efforts. Witnesses that the Congress invites to share information about weaknesses in the financial markets, problems in the health care system, or threats to national security, are also vulnerable to a meritless lawsuit, and that vulnerability creates a chill on First Amendment expression.
The Citizen Participation Act H.R. 4364 was introduced last week by Tenn Rep. Steve Cohen, and referred to the House Judiciary Committee for consideration. The CPA would be the first anti-SLAPP law that applies to federal cases, though 28 states have similar statutes. The act would provide immunity for defendants who engage in protected First Amendment activity, and includes a fee-shifting mechanism to discourage frivolous lawsuits.
SLAPPs require significant resources to defend against, particularly when the discovery process is used as an abusive tool to harass and exhaust the resources of a defendant. SLAPPs frequently result in settlements contingent upon the defendant’s retraction or silence, accomplishing by private litigation a ban on speech as effective as any government gag. Judge Nicholas Colabella of New York said of SLAPPs, “short of a gun to the head, a greater threat to First Amendment expression can scarcely be imagined.”
The Citizen Participation Act draws from the best of anti-SLAPP protections that twenty-eight states afford their citizens, to provide uniform, comprehensive protection against SLAPPs. The law allows a defendant to bring a special motion to dismiss a lawsuit arising from protected speech and petition, stays the discovery process while the motion is pending, and allows a successful defendant to recover fees and costs after the court finds the suit to be groundless. By providing a uniform level of protection for all SLAPP defendants, the law will help end SLAPP forum shopping and ensure full First Amendment protection in all jurisdictions.
OMB Watch is part of a coalition that has worked with Representative Cohen’s office to introduce this bill, the text and a summary is available here. A wealth of information about the bill, the project, and the coalition is available at www.anti-slapp.org.
(Lee Mason 12/23/09; 0 comments)
On Dec. 17, the Federal Election Commission (FEC) proposed rules that would limit donations to some nonprofit groups that engage in campaign activity after the Justice Department announced that it would not appeal the EMILY’s List decision.
The FEC decided in late October that it would not appeal the decision, but Solicitor General Elena Kagan still had the option to appeal the case to the Supreme Court. Additionally legal analysts were split on if she also had the option of "seeking en banc review, or whether that was a choice left to the FEC," according to the Supreme Court of the United States Blog. Kagan’s decision not to appeal leaves the verdict intact.
In EMILY’s List, a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit struck down the FEC regulations, ruling that they violated EMILY's List's speech rights under the U.S. Constitution.
The rules that were struck down "called for EMILY's List and other similar PACs to use at least 50 percent FEC-regulated hard money for activities linked to federal candidates. Another FEC rule struck by the court provides that contributions solicited on the basis of support or opposition to federal candidates must follow FEC hard money limits," according to BNA.($$)
The current rules will remain in effect until the rulemaking process is complete, but the 2010 edition of the FEC’s code of regulations will note that the rules are "no longer in effect" due to the decision in the EMILY’s List case, according to BNA.
(Lateefah Williams 12/18/09; 0 comments)