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Economy

West Virginia Republican Files Secret Spending Requests

Rep. Shelley Moore Capito (R-WV)

Rep. Shelley Moore Capito (R-WV)

Rep. Shelley Moore Capito’s (R-WV) first several terms in Congress could best be described as “free-spending” — obtaining tens of millions dollars worth of earmarks and supporting George W. Bush’s expensive and not-paid-for Medicare Part D, Iraq War, stimulus program, and tax cuts for the wealthy. But while she now denounces the old earmark system as insufficiently “transparent,” she has instead adopted the far more opaque alternative: “lettermarking” funding for her home state.

A ThinkProgress review of lettermark requests — letters by Members of Congress to executive branch agencies requesting specific spending — found multiple letters from Capito to the Obama administration requesting grants. In a September 2011 letter to the Department of Energy, for instance, she endorsed SunShot Initiative grant request for her home state. The state later received a $500,000 grant under the program. Another Capito letter that year to Energy Secretary Steven Chu endorsed a proposal for the department’s Innovative Manufacturing Initiative.

While Capito quietly continues to push for spending on projects she deems worthy, she now presents herself publicly as a budget hawk. In a 2011 floor speech, she said: “Mr. Speaker, we’re broke. Everyone from the small business owner in West Virginia to Standard and Poor’s and Moody’s is looking to Washington to solve this fiscal mess.” In a tweet that year, she opined: “The President will not get my vote to raise the debt ceiling unless we cut spending. It’s time to start living within our means.” Federal spending has increased every year, despite earmark ban.

In the past, Capito was a strong defender of earmarking — the system Congress used to direct federal spending toward specific projects and locations. According to Taxpayers for Common Sense, she obtained more than $33 million in earmarks spending between 2008 and 2010 (on her own or with colleagues). Several of her earmarks benefited her campaign donors.

Since gaining a majority in 2010, House Republicans have embraced a total moratorium on earmarks. Capito reluctantly accepted the change, saying that the move was “about providing more transparency, accountability and guidance in the earmarking system.” She defended her own earmarks as worthy, but conceded, “I have also heard my constituents ask us to stop the unlimited spending in government.”

As Capito endorsed the temporary ban, her press secretary signaled to constituents that she would find new ways to steer spending to her district. The Charleston Gazette reported:

Communities in Capito’s district can look for other federal funding, [Jamie] Corley said. They can send copies of their applications to Capito’s office, she said. “She can write letters on behalf of the requests.

Since the letters are only available to the public if someone requests them under the Freedom of Information Act — a slow and sometimes costly process — this system is far more opaque than the transparent earmark process it replaced.

Politics

EXCLUSIVE: ‘Anti-Earmark’ Senator Tim Scott Sought Federal Funds For Pet Projects In South Carolina

Senator-Designate Tim Scott (R-SC)

Senator-Designate Tim Scott (R-SC)

Like most of the Tea Party Republican House Class of 2010, Senator-Designate Tim Scott (R-SC) ran for Congress vowing to eliminateearmarks” — the system Congressional lawmakers once used to direct federal spending to their districts. But a ThinkProgress examination of public records reveals that in his two years in Congress, he instead used an even less transparent method known as “lettermarking” to attempt to secure funding for his district.

In May 2011, just months after Scott was sworn in as a U.S. Representative and the new Republican House majority opted to ban earmarks, Scott joined four other South Carolina Congressmen in writing to Secretary of Energy Chu on behalf of a South Carolina manufacturer.

They wrote:

The purpose of this letter is to express our support for Robert Bosch LLC (Bosch) and the company’s recent response to DOE Funding Opportunity Number FOA000023900219 (Recirculated Exahust Gas Intake Sensor – REGIS). In addition, we are aware that Bosch’s partner in this application is Clemson University’s International Center for Automotive Research (ICAR). Bosch has been a committed and active member of the South Carolina manufacturing community since 1974.

View the letter below:

The Department of Energy approved the application as requested, giving Bosch a $550,000 federal project.

But publicly, Scott backed a ban on earmarks, arguing that they were corrupt and wasteful. “Washington is filled with politicians who promise that they will deliver goodies to the folks back home. What those politicians don’t tell us is that by playing that game, they force the taxpayers of our district to pay for hundreds of billions of dollars in wasteful pork projects all over the country,” he observed in his 2010 campaign. He told his future constituents, “The earmark system leaves us with crumbs while others get the loaves.”

According to Taegan Goddard’s Political Dictionary, “lettermarking” occurs when lawmakers send letters to federal agencies requesting money for projects in their home district. While agencies are not obligated to comply with the requests, Reason’s Jacob Sullum notes, “agencies are loath to antagonize the legislators who approve their budgets, especially when they have added extra money with a specific project in mind.” These letters are only available to the public if someone happens to request them under the Freedom of Information Act.

Election

I Didn’t Build That: Ryan Event Host Touts Federal Support Of His Business

Vice Presidential pick Paul Ryan was put in an awkward position on Thursday when one of the speakers at his own campaign event bragged about getting government funding to help build his business.

Scott Perry is President of the Partnership for Defense Innovation, which recieved $7.5 million in earmarks over three years — under both Presidents Bush and Obama. Perry’s praise for government funding was odd, considering low public opinion of earmarks generally, and the Romney-Ryan campaign’s persistent focus on the fact that people build businesses themselves, not with the help of government.

Still, at Thursday’s event, Perry said, “this building that you are sitting in is an example, a success story, of federal appropriations that worked:”

Fiscal year 2008 and 2009, we put money together to build this facility — not only to build technology for our war fighter, but also to create jobs and generate revenue for the state of North Carolina, and for Fayetteville.

Watch it:

Interestingly, Paul Ryan voted in favor of two of the three earmark bills that gave Perry his funding.

NEWS FLASH

Santorum ‘Proud’ Of His Earmarks, Including Vote For The ‘Bridge To Nowhere’ | Earmarks has become despised by many voters, but at a campaign stop in Iowa yesterday, Rick Santorum defended his use of them during his 12 years in Congress. The former Pennsylvania senator said he was “proud” of his earmarks, explaining, “Go and look at the Constitution. Who has the responsibility to spend money? Clearly, in the Constitution it is the Congress.” While agreeing that the practice has been “abused,” Santorum even defended his vote for the so-called “bridge to nowhere” — a proposed bridge from Ketchikan, Alaska, to an island with 50 residents and the town’s airport. “You had a city that was separated from its airport,” Santorum explained.

Climate Progress

After Receiving Contributions From Electric Car Company Investor, Issa Asked Sec. Chu For Clean Energy Loan

If the House Oversight Committee wants to be consistent with its stated reason for investigating Solyndra, the committee should probe Rep. Darrell Issa’s (R-CA) clean energy loans as well.

On Tuesday, Issa explained on CSPAN that the purpose of his investigation would be to take a broader look into the very idea of clean energy loan programs. Although Solyndra’s investors include an influential Republican donor, Issa and other Republicans on his committee have singled out one Obama fundraiser who also invested in the company as evidence of crony capitalism. He called the Republican-created clean energy loan system, the one that benefitted Solyndra, an example of the government picking “winners and losers” and an “easy way to end up with corruption in government”:

ISSA: In the case of the president’s people, in the case of Henry Waxman, clearly he had people who saw a link between their campaign contributions, their ideological bent, and these companies.

Watch it:

As Bloomberg’s Jim Snyder reported yesterday, Issa sent letters to the Department of Energy requesting money for companies using a clean energy loan program similar to the one denounced this week as inherently corrupt. On Jan. 14, 2010, Issa sent a letter to Secretary Chu requesting an expedited loan to Aptera Motors, a start-up electric car company. Issa said the company would create jobs and “aid U.S long-term energy goals by shifting away from fossil fuels and using viable renewable energy sources like plug-in electric energy.” He also sent a letter along with a bipartisan group of lawmakers to the Obama administration requesting a government loan to a green tech battery company.

Issa’s spokesman says that Aptera deserved the taxpayer-subsidized loan, and that certainly may be the case. However, Issa said his investigation will probe campaign contributions and their relation to the decision to award such loans.

It turns out that a financial backer of Aptera, the company Issa assisted with a loan request, is a major Republican donor and a contributor to Issa.

According to GreenVC, one of the investors backing Aptera is the Beall Family Trust. The Beall Family Trust is controlled by Don Beall, the former CEO of Rockwell. Beall, now a board member of Aptera, happens to be a Republican donor in California. A political action committee he helped found and fund, the New Majority PAC, has contributed at least $15,000 to Issa over the years.

Beall has given to the McCain campaign, the Bush campaigns, and various party and congressional campaign accounts. As Lucas O’Connor notes, Beall’s profile as a major donor makes him a “good friend to have for any California Republican looking to improve their profile, their influence, or their office.” Beall gave one direct donation to Issa, a $250 check. The donation came just two months before Issa sent a letter recommending the government loan to Beall’s company, Aptera.

Aptera isn’t the only company with campaign ties to Issa that the congressman attempted to help. In 2006, executives from the defense contractor Vertigo Inc. contributed at least $6,500 to Issa’s campaign. The next year, Issa made an earmark request specifically for the company. In 2008, the defense appropriations bill awarded the company with a $1,440,000 earmark. Issa was the only member of Congress to add his name to the request.

Crony capitalism should be investigated by Congress, from the revolving door to the undue influence of selfish special interests. For Issa to avoid the appearance of a partisan witch-hunt, the Oversight Committee investigation should consider Issa’s own involvement in clean energy loans.

Politics

‘Tea Party Candidate’ Santorum Procured $3 Million In Federal Earmarks As Senator

Even while touting himself as a “Tea Party kind of guy before there was a Tea Party,” presidential candidate and former Sen. Rick Santorum (R-PA) isn’t fooling many among grassroots conservatives, who label him as “the poster boy for big government.” And Santorum’s past as a “prolific supporter of earmarks” won’t make it any easier.

While serving as a U.S. senator in 2003, Santorum procured over $3.1 million in federal earmarks for social conservative causes — over $1 million of which has gone to the anti-gay Urban Family Council. The Christian group and its president William Devlin have actively opposed gay rights, from promoting a same-sex marriage ban to supporting laws criminalizing homosexuality.

Devlin even criticized the enactment of a stronger hate-speech ban in Philadelphia in 2005:

“There is a collective spirit of fear hanging over this city. Right now, the gays own Philadelphia…Over the last ten years, I’ve been to pastor after pastor in this city, trying to get them to put pressure on the elected officials who’ve been pushing the homosexual agenda. They’re all afraid to speak up. They’re like the frog in the kettle: they’ve sat there in silence for all this time while the gays kept turning up the water temperature. Now it’s come to a boil, and they’re still in the pot.”

In turn, the UFC and its president William Devlin campaigned for Santorum during his 2006 campaign, potentially violating the IRS rules regarding acceptable political activity for religious organizations. Along with the three other Christian groups in the Pennsylvania Pastors Network, the UFC hosted a get-out-the-vote drive in local churches at which Santorum was the only candidate represented; he gave a seven-minute speech to pastors on the importance of the same-sex marriage initiative via a pre-recorded video.

Santorum’s close relationship with social conservative groups like UFC, including the securing of federal dollars for their causes, has led right-wing writers to characterize Santorum as more inclined “to make government pro-family, not to make it small.” As RedState’s Ben Domenech concludes, “It’s precisely the Republican Party of Rick Santorum that even makes the Tea Party movement necessary.”

Sarah Bufkin

Politics

Bachmann Personally Benefited From Earmarks, Then Falsely Claims She Never Did

Michele Bachmann (R-MN) officially kicked off her presidential campaign this morning in Iowa, right after the latest state poll shows her surging and only a point behind front-runner Mitt Romney (R-MA). But as she becomes a more prominent and viable candidate, Bachmann is facing fresh scrutiny over her past remarks and positions. The Los Angeles Times recently released an investigative report showing that she and her family personally benefited from hundreds of thousands of dollars in government aid.

Bachmann, who once declared, “All this pork is bad” and has centered her campaign around denouncing out-of-control government spending, was less than truthful when disclosing the full extent of the earmarks she’s taken during an interview on Sunday with Fox News’ Chris Wallace.

Wallace confronted her with the government funds she’s accepted over the years while portraying herself as a fiscal conservative. They include $30,000 for a counseling clinic run by her husband and $260,000 in federal subsidies for a family farm in Wisconsin, where she is listed as a partner. Bachmann, a Tea Party favorite, struggled to square her pledge not to take congressional pork with accepting earmarks for personal projects.

WALLACE: Over the years you sought more than $60 million in state earmarks and more than $3.7 million in federal earmarks. Question: that’s a fiscal hawk?

BACHMANN: Well let’s go through them. First of all the money that went to the clinic was actually training money for employees. The clinic did not get the money and my husband and I did not get the money…Number two regarding the farm, the farm is my father-in-law’s farm, it’s not my husband and my farm. My husband and I have never gotten a penny of money from the farm. Regarding the earmarks, I believe the right place to build projects is in the state. And the states have to build roads and bridges, and I don’t apologize for building roads and bridges.

WALLACE: So you’re pro-earmark?

BACHMANN: No, during my first term in Congress I signed a pledge that I will not take earmarks. I’ve been faithful to that pledge.

Watch it:


The LA Times swiftly rebutted Bachmann’s defense. Her insistence that “my husband and I have never gotten a penny of money from the farm,” directly contradicts her own financial disclosure forms, where she reported receiving between $32,503 and $105,000 in income from the farm, at minimum, between 2006 and 2009.

Bachmann’s claim that she has been faithful to the no-earmark pledge simply does not square with the facts. And as Wallace pointed out, Bachmann’s counseling clinic benefited from federal money even if it was “just” for employee training, as she claimed. Her defense that “it actually took away from the clinic because these were training hours where employees were not able to bring more income” doesn’t pass the laugh test, as Bachmann or her partner would have had to apply for and accept federal funds to receive money for employee training. She also failed to explain how “additional training to help employees” was not a benefit to the clinic (or why she applied for it if that was the case).

She also dismissed the charge that she was “pro-earmark” based on the fact that some of the pork she took was for infrastructure projects. Her defense that pork isn’t pork if it’s for projects she likes sounds a lot like the political truism: “It’s only pork if your opponent takes it.”

All in all, Bachmann’s explanation was completely inadequate, fudged the truth, and failed to justify how she took taxpayer money for pet projects while denouncing reckless Washington spending. As she kicks off a three-state campaign tour, hopefully the media will continue to press her until she gives a more honest accounting of the earmarks she accepted.

Politics

Issa’s Response To ThinkProgress Raises More Questions About His Financial Interest In $1 Million Earmark

On Wednesday, we reported that some of the earmarks Rep. Darrell Issa (R-CA) had requested over the years appear have the potential to benefit Issa’s real estate empire. Yesterday, Issa responded to our article over Twitter:

Issa did not dispute the fact that his earmark could benefit his real estate property. Instead, he argued that the earmark was simply a request from a constituent. In his Tweet, Issa linked to a letter from a county government group requesting the earmarks at issue. It would be appropriate if the earmark had been requested coincidentally near property Issa already owned. Over the years, starting with fiscal year 2007, Issa had placed the West Vista Way earmark on his list of interested earmarks. However, the timeline of events shows that Issa actually purchased his $16.6 million office building with the knowledge that his own earmark next to it was finally pending:

February 20, 2008: According to the letter provided by Issa’s office, the San Diego Association of Governments requested $2 million in taxpayer earmarks for widening and improving the West Vista Way road in Vista, California.

March 4, 2008: Issa releases the list of over $200 million in earmark requests that includes the $2 million request for the improvements on West Vista Way.

October 8, 2008: Issa negotiates the purchase of the Vista Medical Plaza for $16.6 million. The building is situated next to West Vista Way and along the area where the earmarked improvements are targeted.

February 2009: A few months after closing the deal on his multi-million dollar Vista Medical Plaza office building, Issa pushes for his West Vista Way earmark in the Omnibus Appropriations Act of 2009. Unlike any of Issa’s other earmarks, Issa secured two separate earmarks for West Vista Way into the bill: one for $245,000 and another for $570,000.

February 2009: Although Issa publicly listed over $200 million in earmarks for the FY2009 budget, he only secured a few. He did not obtain a million dollar Boys and Girl grant, nor did he secure one for a flood control grant in his district. Out of all of the earmarks he publicly listed, the West Vista Way one seemed to fair better than most.

March 11, 2009: President Obama signs the Omnibus into law, granting a total of $815,000 to the West Vista Way project for Issa. Issa later begins advertising his Vista Medical Plaza and its “Excellent Access with Freeway Visibility.”

As we noted yesterday, Issa has said that an “earmark is tantamount to a bribe.” Issa’s fellow House Republicans in the San Diego area have a long history of earmark related scandals. Rep. Ken Calvert (R-CA) got caught enriching himself off of land deals boosted by the earmarking process. Former Rep. Duke Cunningham (R-CA) was embroiled in a similar controversy. Responding to the Cunningham scandal, Issa made a poignant observation:

“The Duke Cunningham earmark-bribery scandal brought new scrutiny to members of Congress and, specifically, to the appropriations process. Constituents want to know that the project requests we make benefit our communities, our country, and don’t line our pockets.”

Planning his role as chairman of the House Oversight Committee, Issa called for hearings on the earmarking process. Given Issa’s remarks on the Cunningham scandal, he should be acutely aware of the ethical problems posed by buying property next to his own earmark projects.

Why did Issa purchase the land when he had a pending earmark request that could increase its value? Will he now withdraw his earmark since he might benefit financially from the project?

Politics

Exclusive: Issa Secured Nearly $1 Million In Earmarks Potentially Benefiting Real Estate That He Owns

As Roll Call reported earlier this month, Rep. Darrell Issa (R-CA) has a history of blending his personal business interests with his work as a member of Congress. Companies owned by the Issa family, including a firm called DEI (an acronym for Issa’s initials), set up websites to channel users to Issa’s official congressional campaign website. After Roll Call made an ethical inquiry to Issa, he changed the website.

ThinkProgress has discovered more troubling evidence that Issa may have blended his work as a lawmaker with his own business empire. After founding a successful car alarm company, Issa invested his fortune in a sprawling network of real estate companies with holdings throughout his district. One of Issa’s most valuable properties, a medical office building at 2067 West Vista Way in Vista, California, is called the Vista Medical Center, and was purchased in 2008 for $16.6 million. Described as “a long-term investment,” the property was bought by a company called Viper LLC, a business entity operated by Issa’s family that Issa has up to a $25 million dollar stake in.

Around the same time Issa made the Vista Medical Center purchase, the congressman began requesting millions of dollars worth of earmarks to widen and improve the highway adjacent to the building. In 2008, he requested $2 million to expand West Vista Way, the road in front of his “long-term investment,” but only received $245,000 from the government. The next year, Issa made another earmark request for improving the West Vista Way highway next to his building. He earmarked another $570,000, bringing his total to $815,000, to add parking lots, widen the road, add bus stops, improve the sewer system, and other utility work. A map showing the location of Issa’s property, and the road, is below:

Issa has said that an “earmark is tantamount to a bribe.” While Issa has handed out earmarks to his campaign donors in the past, in this case, he appears to be helping himself.

Although the highway project has not begun yet (because of local budget problems), the federal money is allocated through Issa’s efforts. Already, a firm representing Issa’s real estate company is advertising the Vista Medical Building and its “Excellent Access with Freeway Visibility.” As ethics experts have explained, lawmakers should avoid earmarks in the immediate area of their own business interests.

Issa’s highway earmarks not only potentially benefit his multi-million dollar medical office building, they provide better access to his other properties in the area. About 2 miles down West Vista Way from the Vista Medical Center, Issa owns a commercial office building worth over $9 million, as well as an adjacent retail office building. The commercial office building leases to a number of different clients, and Issa’s retail building leases to a Hooter’s. All three properties are on the same highway, which Issa plans to retrofit with taxpayer money.

Politics

Lindsey Graham Vows To Defy GOP Earmark Ban

Even though Senate Republicans banned earmarks in November, Sen. Lindsey Graham (R-SC) promised yesterday afternoon that he will find a way to circumvent that ban in order get his pet project funded, even if it means voting against the short-term continuing resolution Congress is now considering to fund the government:

Graham said there are plans to put language in the continuing budget resolution for the current year authorizing the U.S. Army Corps of Engineers to spend some of its own money so the study is not delayed further.

It will not mention Charleston specifically or include a dollar amount but Graham says corps officials told him they could put in between $50,000 and $100,000.

“The state is ready to write the check for the rest tomorrow. We just need to get the corps authorization to spend the money,” he said, adding he will oppose any continuing budget without the provision.

“Is that an earmark?” Graham rhetorically asked reporters. “I don’t know what you call it. To me it makes sense.” Graham’s more conservative South Carolina colleague, Sen. Jim DeMint (R-SC), supports the project, but not Graham’s funding method. He’s proposing an independent commission that would assess the merits of Army Corps projects, instead of allowing lawmakers to direct projects through earmarks.

While the port deepening may be a worthy project, Graham’s promise to fund it by any means necessary conflicts with the GOP’s stance on earmarks — and his own comments. A few months ago, Graham called earmarks “abuses” of power that lead “many to question our willingness to get our nation’s fiscal house in order.” And just last month, Graham said, “Taking a time out on earmarking, I think, would be good to just show the American people that we’re not totally living on different planet from you.” Watch it:

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