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Reed heads for the exits — and for K Street

Delivered daily, Influence gives you a comprehensive rundown and analysis of all lobby hires and news on K Street.
May 11, 2022 View in browser
 
POLITICO Influence newsletter logo

By Caitlin Oprysko

With Daniel Lippman

REED HEADS TO K STREET: New York GOP Rep. Tom Reed resigned from Congress on Tuesday to take a job at Prime Policy Group. He'll officially start as vice chair at the firm next week, Chair Rich Meade told PI in an email. Meade added that Reed will be "advising our clients across the board by sharing his insights and experiences from his long-tenure in Congress and as a Member of the Ways and Means Committee. Tom will also be working with us on business development."

— "Throughout his six terms in Congress and as Mayor of Corning, New York, Tom has always practiced reaching across the aisle to find consensus and achieve results, and we look forward to him bringing that same spirit and effectiveness to our team at Prime," Meade said in a statement. He pointed to Reed's role as a former co-chair of the bipartisan Problem Solvers Caucus, saying the position "aligns entirely with Prime's collaborative, team-based approach for delivering solutions."

— Stefan Bailey, the firm's president and chief executive, said that Reed's "domestic and international policy expertise, his rapport with leaders of both political parties" and his tenure on the powerful tax writing panel "will be invaluable to our clients and enhance the firm's strategic capabilities."

— The firm, which prior to a 2010 merger was home to future Trump allies Paul Manafort and Roger Stone , represents dozens of clients, including drugmaker AstraZeneca, the National Association of Chain Drug Stores, middle market consulting firm RSM, tobacco company Pyxus International, Vineyard Wind, the government of Glendale, Ariz., the United Motorcoach Association and Surescripts, disclosures show. They also represent one foreign government, according to FARA filings — Japan's Ministry of Foreign Affairs.

— He's the second lawmaker to head straight from the halls of Congress to K Street in the past two months, after Rep. Filemon Vela (D-Texas) resigned his seat to join Akin Gump Strauss Hauer & Feld at the end of March. Unlike other lawmakers who land on K Street after leaving Congress, Vela wasted no time in registering to lobby, doing so for the first time last week.

— Reed, like Vela, is barred from lobbying his former colleagues for a year, but is able to begin lobbying the Biden administration right away. Meade told PI with regard to Reed registering to lobby that "we will comply with all laws and of course he will register once required."

— "While I'm proud that we put people before politics, there's much more to do. I'm leaving to continue that work and hope to have a greater impact on our country," Reed said in a floor speech announcing his resignation on Tuesday, bemoaning what he called a "focus on extremism" among his colleagues. "It is time for petty political posturing to end. Leadership must emerge."

— Still, Reed's imminent arrival on K Street marks an abrupt turn from a year ago. As recently as last spring, he was considered a frontrunner for the GOP nomination to challenge then-Gov. Andrew Cuomo for reelection when a former lobbyist accused the six-term congressman of sexual misconduct while on a trip in Minneapolis in 2017. Though he initially cast doubt on the lobbyist's story, Reed eventually took "full responsibility" for his behavior, apologized and said he had since sought treatment for addiction, adding that he would not be seeking elected office.

Good afternoon and welcome to PI. Send tips: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

 

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DEMS STILL PROBING BERNHARDT: "House Democrats asked the Justice Department on Wednesday to investigate whether former Interior Secretary David Bernhardt improperly leaned on agency staff to approve a project for an Arizona land developer who made large donations to Republicans and then-President Donald Trump's reelection effort," POLITICO's Ben Lefebvre reports.

— "In the letter to Attorney General Merrick Garland, House Natural Resources Chair Raúl Grijalva (D-Ariz.) and Rep. Katie Porter (D-Calif.), chair of its Oversight and Investigations panel, allege that Bernhardt during his time as deputy secretary in 2017 pressured career staff at the Fish and Wildlife Service to reverse their denial of a water permit needed for the construction of Villages at Vigneto, a proposed high-end development of 28,000 homes, a golf course and restaurants in southern Arizona. The lawmakers cite interviews with Trump-era officials and emails from Interior Department staff as evidence."

— "Around the same time as the reversal, Michael Ingram , the owner of the land to be developed, and a group of Arizona donors including his personal and business associates gave $241,600 to political campaign committees associated with Trump, the committee's review of campaign finance records show."

— Bernhardt, a former lobbyist at Brownstein Hyatt Farber Schreck who has since returned to the firm, "had faced numerous accusations while in office that he made decisions benefiting his former clients and hid documents such as his public schedule."

SKDK PARTS WAYS WITH STARBUCKS: "A top Democratic consulting firm with deep ties to the Biden administration was working on behalf of Starbucks until last month , even as the coffee giant was pushing back against union efforts at several of its locations," our Hailey Fuchs reports.

— SKDK, the public affairs and Democratic consulting giant co-founded by longtime White House adviser Anita Dunn , "has listed Starbucks as a client for years. More recently, it was part of a larger campaign, including Starbucks and other entities, to invest in Black-owned businesses and close the racial wealth gap. The firm's recent work coincided with Starbucks' efforts to fight back against employees trying to create a union in various locations — and with the president's increasingly vocal advocacy for workers seeking to unionize."

— "Starbucks has been accused of promising increased benefits and better work conditions for those who refrained from unionizing, surveilling employees' union activities and terminating some unionized workers."

— The firm's work for Starbucks "comes as the Democratic Party is mulling whether to ban its consultants from participating in anti-union activities. Though the consulting firm said that it did not help Starbucks on labor issues, its work for the company could potentially complicate the Biden administration's increasingly assertive pivot toward supporting unionization efforts across workforces."

— It also comes with Dunn set to return to the West Wing as a senior adviser and assistant to President Joe Biden. She previously served as a top aide on Biden's campaign, and joined the administration at its outset last year — a stint that drew criticism from watchdogs because Dunn's salary allowed her to avoid disclosing who her clients were.

— "SKDK and Starbucks ended their relationship last month, according to SKDK partner Jill Zuckman . In a statement, Zuckman reaffirmed the firm's support for Starbucks and did not directly address its ongoing labor dispute," but later said SKDK did not work on labor issues for the coffee franchise. A Starbucks spokesperson, Jaime Riley, said SKDK was not the one to decide to end the "longstanding relationship."

FLYING (AND BOATING) IN: The National Marine Manufacturers Association is kicking off its American Boating Congress today at the Wharf in Southwest D.C. They'll hear from lawmakers at the event and will meet on the Hill with offices from more than 15 states, including Congressional Boating Caucus co-chairs Sens. Gary Peters (D-Mich.) and Todd Young (R-Ind.), and Reps. Nancy Mace (R-S.C.) and Charlie Crist (D-Fla.). The trade group will discuss the recreational boating industry's policy priorities and the "political and practical realities" of innovations like electrification.

— Back on land, doctors with the U.S. Oncology Network, which represents a network of independently owned community-based oncology physicians, are meeting today with members of the House Energy & Commerce and Ways and Means committees to discuss several bills related to Medicare reimbursement and the group's value-based care model. They're scheduled to meet with Reps. John Joyce (R-Pa.), Greg Murphy (R-N.C.), Kevin Hern (R-Okla.), Buddy Carter(R-Ga.), Adrian Smith (R-Neb.) and Neal Dunn (R-Fla.).

— BSA | The Software Alliance is also holding a fly-in today, drawing board members and executives of member companies like Cisco, IBM, Salesforce and Workday to meet with lawmakers including House Majority Leader Steny Hoyer, Minority Leader Kevin McCarthy, House Energy & Commerce Chair Frank Pallone (D-N.J.) and ranking member Cathy McMorris Rodgers (R-Wash.), Sens. Richard Blumenthal (D-Conn.), Marsha Blackburn (R-Tenn.) and Jacky Rosen (D-Nev.) National Security Council general counsel Jake Phillips and more.

MISSISSIPPI FIRM LAUNCHES NEW FEDERAL ARM: Capitol Resources, the Jackson-based lobbying firm run by a member of the Mississippi Barbour political dynasty, filed termination paperwork for 17 clients including Ligado Networks and Leidos, amid plans to move the firm's federal clients under the banner of a new offshoot formed by several Capitol Resources partners.

— Ty Mabry, a former aide to former Sen. Thad Cochran of Mississippi and former Reps. Gregg Harper and Chip Pickering; Susan Butler, a Trent Lott and Pickering alum; and John Lundy, also a Lott alum, will head up the new shop, called CR Federal. Capitol Resources was founded by Clare Hester , and the firm's other managing partner is Henry Barbour, an RNC committeeman and the nephew of Haley Barbour, a former Mississippi governor and co-founder of BGR Group.

— In a statement, Lundy said that "CR Federal will continue to work closely with the team at Capitol Resources," as evidenced by the new firm's initials. The firm said in a news release the new entity "allows both companies to focus on core competencies and continue to deliver for clients in our respective spheres of influence."

SPOTTED at a kickoff reception Tuesday night for the Congressional Football Game held at the National Indian Gaming Association, per a tipster: Co-captains Reps. Jimmy Panetta (D-Calif.) and Rodney Davis (R-Ill.), former players Ken Harvey, Gary Clark and John Booty, the NFL's Ken Edmonds and Brendon Plack, the Washington Commanders' Joe Maloney, Zillow's Michael Dendas, Capitol Counsel's Lyndon Boozer, Tiber Creek Group's Lindsey Ledwin, SFIA's Bill Sells and LeMunyon Group's Glenn LeMunyon.

 

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

 
 
Jobs Report

— The Managed Funds Association has hired David Lourie as vice president and senior counsel for regulatory affairs. Lourie was most recently associate general counsel and vice president at General Atlantic, where he worked closely on issues relating to ESG.

— Garima Verma is now digital director for Stacey Abrams' Georgia gubernatorial campaign. She most recently was digital partnerships and content director for a nonprofit and is also a Biden White House alum.

— Morgan Gress Johnson is now head of U.S. government communications at Palantir. She previously was director of strategic communications at Invariant, and is a Brunswick Group alum.

— Shannon Gilson is now senior director of policy communications at Apple . She previously was managing director for corporate communications and public affairs at American Airlines and is an Obama administration and campaign alum.

New Joint Fundraisers

DEsposito Victory Fund (DESPOSITO FOR NEW YORK, DESP4NY PAC (Dedicated to Ensuring Safety and Providing 4 New York)
Iowa 123 Victory Fund (Rep. Cindy Axne, Liz Mathis for Congress, Christina Bohannan for Congress)

New PACs

DESP4NY PAC (Dedicated to Ensuring Safety and Providing 4 New York) (Leadership PAC: Anthony D'Esposito)
Diamond PAC (PAC)
Virginia Conservatives Fund (Super PAC)

New Lobbying Registrations

Applied Intuition: Applied Intuition
Arnold & Porter Kaye Scholer LLP: Urac, Inc.
Baker Donelson Bearman Caldwell & Berkowitz /The Daschle Group: Freedom For All Americans
Cassidy & Associates, Inc.: Arnold Ventures
Cassidy & Associates, Inc.: Control Solutions, LLC
Cassidy & Associates, Inc.: Synexxus Inc.
Clark Hill, Plc: Florida International University
Clark Hill, Plc: Veru, Inc.
Diroma Eck & Co. LLP: Red Six International
Genesis Partners Palm Beach LLC: Talitrix
Holland & Knight LLP: Alliant International University
Holland & Knight LLP: American Factoring Association
Holland & Knight LLP: Roanoke College
Lkb Strategies LLC: Axogen, Inc.
Odendahl Strategies LLC: Smith, Dawson & Andrews Obo National Association Of Foreign-Trade Zones
Pioneer Public Affairs: Newlight Technologies, Inc.
Sbl Strategies, LLC: Mississippi State Port Authority At Gulfport
Sbl Strategies, LLC: Yandex N.V.
Subject Matter (Fka Elmendorf Ryan): Hertz Global Holdings, Inc.
The Picard Group, LLC: Chc Community Care, LLC
The Picard Group, LLC: Houma-Terrebonne Airport Commission
The Picard Group, LLC: St. Landry Parish
Townsend Public Affairs, Inc: City Of Agoura Hills
Townsend Public Affairs, Inc: City Of La Habra
Townsend Public Affairs, Inc: City Of Ontario
Townsend Public Affairs, Inc: City Of Palmdale
Townsend Public Affairs, Inc: Long Beach Community College District
Townsend Public Affairs, Inc: Orange County Housing Finance Trust
Townsend Public Affairs, Inc: Sunline Transit Agency
Tremont Strategies Group LLC: Boston Health Care For The Homeless Program

New Lobbying Terminations

Capitol Resources, LLC: Ark Multicasting, Inc.
Capitol Resources, LLC: Ergon Inc
Capitol Resources, LLC: First South Farm Credit Aca
Capitol Resources, LLC: Granite Telecommunications, LLC
Capitol Resources, LLC: Iac, Ltd.
Capitol Resources, LLC: Jewish Live Television
Capitol Resources, LLC: Kansas City Southern Railway Company
Capitol Resources, LLC: Kopis Mobile, LLC
Capitol Resources, LLC: Leidos
Capitol Resources, LLC: Ligado Networks
Capitol Resources, LLC: National Aviation Academy
Capitol Resources, LLC: Sanderson Farms. Inc
Capitol Resources, LLC: Taylor Defense Products, LLC
Capitol Resources, LLC: Tellus Operating Group, LLC
Capitol Resources, LLC: Tenax Aerospace
Capitol Resources, LLC: Turo
Capitol Resources, LLC: Vertex Aerospace
Clark Hill, Plc: Wolf Creek Railroad LLC
Dla Piper LLP (US): Metabank
Loper Consulting LLC: Patients For Affordable Drugs Now, Inc.
Merchant Mcintyre & Associates, LLC: Arkansas State University-Newport
Merchant Mcintyre & Associates, LLC: Catalina Island Medical Center
Merchant Mcintyre & Associates, LLC: Churchill County, Nv
Merchant Mcintyre & Associates, LLC: City Of El Paso, Tx
Merchant Mcintyre & Associates, LLC: City Of Madison, Al
Merchant Mcintyre & Associates, LLC: Excelsior College
Merchant Mcintyre & Associates, LLC: Holy Names University
Merchant Mcintyre & Associates, LLC: Keuka College
Merchant Mcintyre & Associates, LLC: Reid Health
Merchant Mcintyre & Associates, LLC: Tabor College
Merchant Mcintyre & Associates, LLC: Wagoner Community Hospital
Merchant Mcintyre & Associates, LLC: Whidbey Health
Townsend Public Affairs, Inc: City Of Duarte
Townsend Public Affairs, Inc: City Of San Luis Obispo
Washington Alliance Group, Inc.: Southwest Research Institute

 

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