News: FARA by the numbers

Friday, December 10, 2021

FARA by the numbers

Dec 10, 2021

Presented by CVS Health

With Daniel Lippman

FARA BY THE NUMBERS: The Justice Department's reinvigorated focus on enforcing FARA in recent years has continued paying dividends for the department, a top DOJ official said Thursday, with the FARA office recording what could be record numbers of new registrants and foreign agents in 2021.

— The department's 543 active FARA registrants as of Thursday is the highest number since at least 2013, Jay Bratt, who leads the department's Counterintelligence and Export Control Section which oversees FARA, said in a keynote address at the American Conference Institute 's FARA forum yesterday. Bratt shied away from calling that number the largest ever at a given time because the Lobbying Disclosure Act and FARA's LDA exemption siphoned off some registrants. "But probably post-LDA that could be the highest number that we have," Bratt said.

— There are currently 2,772 active short-form registrants, or individual foreign agents, registered as of yesterday, which Bratt said is another high since 2013. Those agents represent 844 foreign principals. The department has recorded 121 new registrants this year, which is the second largest number, down from the peak in 2019, while the FARA unit has reviewed 5,975 documents over the last year, Bratt added. He chalked the improvement up to renewed attention on the statute since a pretty blistering 2016 inspector general report, as well as Russia's 2016 election interference as highlighted by former special counsel Robert Mueller's probe of those influence efforts.

— The department has prosecuted several high-profile foreign influence cases since — albeit with a mixed record, though a handful were brought under a non-FARA foreign agent statute. But Bratt indicated that the crackdown has had the intended effect of greater compliance, though he noted that the FARA unit continues to staff up, and added a trial attorney to its ranks earlier this year. "We've been stricter on delinquency and deficiency notices than we were in the past. And I think one of these days we will probably end up having to sue somebody," he quipped.

— The turnaround for the unit, which by 2014 had seen active registrations drop by 60 percent from their peak in the 1980s, is enabling DOJ to focus on improving what FARA experts have repeatedly described as a severely outdated statute. "In essence … the department for the last four or five years has been focusing on enforcement," Brandon Van Grack, the former head of the FARA unit now at Morrison & Foerster, told PI. "Now it's focusing on regulation and administration."

Good afternoon and welcome to PI. Send tips and drafts of your FARA rulemaking comments: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

A message from CVS Health:

Throughout the pandemic, in communities across the country, CVS Health has been there. We've opened more than 4,800 COVID-19 test sites, administered 38 million tests and given 43 million vaccines. We've expanded access to prenatal and postpartum care via telemedicine, increased remote access to mental health services and invested in affordable housing to help build healthier communities. We've been on the frontlines, making health care easier to access and afford. Learn more.

FOREIGN GOVERNMENTS TURN TO K STREET FOR VACCINE ASSIST: "President Joe Biden has promised that there would be no room for geopolitics in the effort to deliver vaccinations across the globe. But that hasn't stopped foreign governments, like Kenya, from trying," POLITICO's Hailey Fuchs reports.

— "Filings with the Department of Justice reveal that some of those governments are using their Washington lobbyists to try to find an edge in a byzantine system of global vaccine distribution largely controlled by the U.S. and a handful of other wealthy countries — one that has been widely criticized for delays and unequal access . The recent emergence of the worrisome Omicron variant of the virus has driven home just how much of a risk the low vaccination rates in the developing world present to rich and poor nations alike."

— "The competition for scarce vaccine doses began even before any were approved for use, and intensified in the early months of 2021, when the shots began rolling out. And even though rich countries pledged to donate more than $1 billion worth of vaccines to low and middle-income countries, many countries and territories remained antsy."

— "The list of foreign governments that reported using their K Street connections in vaccine procurement efforts thus far this year includes the Republic of Ghana, Kurdistan, the Republic of Trinidad and Tobago, and Barbados. But there could be more. A lag in the lobbying filings, disclosed under the Foreign Agents Registration Act, means that only activities up through October or earlier are currently disclosed."

RESTAURANTS ISSUE A DIRE PLEA FOR HELP: Thousands of restaurants across the nation on Thursday pleaded with congressional leadership to refill the coffers of a pandemic relief program for the industry after additional money was left off a stopgap spending bill last week, arguing that for many, "we can't wait any longer."

— "Our small businesses are struggling to survive," the businesses wrote in a letter to House Speaker Nancy Pelosi , Senate Majority Leader Chuck Schumer, House Minority Leader Kevin McCarthy and Senate Minority Leader Mitch McConnell . "Food and supply costs have skyrocketed, diners are more apprehensive with each new COVID variant, winter weather makes outdoor dining impossible, and we have immense debt after almost two years of business disruption. Many businesses that have managed to scrape by anticipate closing forever in the next few months if they don't receive a Restaurant Revitalization Fund (RRF) grant."

— The letter, organized by the Independent Restaurant Coalition , comes amid months of angling for more funding after the Restaurant Revitalization Fund, established in March's Covid relief package, ran out of money with more than 177,000 applicants left unfunded. The industry had hoped lawmakers would tack additional funding onto a bill to avert a government shutdown last week to no avail, leaving advocates grasping for aid.

— The signatories noted that nearly 300 House members and 51 senators have signed on to bills to help the roughly two-thirds of applicants for the program who were left without aid. "It's not fair to help some businesses navigate the rising cost of staying in business by helping pay down debts, make necessary repairs and hire workers at competitive rates," they argued. "The government should not pick winners and losers — this pandemic impacted all of us, and we all deserve a fair shot."

A message from CVS Health:

DEFENSE LOBBYING HITS 8 YEAR HIGH: "Defense sector lobbying hit an eight-year high ahead of the House passing the annual National Defense Authorization Act," OpenSecrets' Ariel Gans reports. "The $98.9 million the industry spent in the first three quarters of 2021 is more than it has spent in the same time period since 2013."

— Those numbers don't include Boeing, one of the military's leading manufacturers of aircraft, which the site's database groups with the transportation sector as of 2019. And even though the defense industry's spending in the third quarter of 2021 was down from the same period a year ago, defense interests dropped $27.4 million on federal lobbying this summer as lawmakers crafted the $768 billion bill passed by the House this week — with more money than Biden initially requested.

— "The highest-spending lobbying subsection of the defense sector is the miscellaneous defense industry, which spent $39.4 million and includes arms manufacturers, military contractors, defense research and development firms, naval shipbuilders and other defense-related services and manufacturing groups. … Defense contractor General Dynamics leads the miscellaneous defense sector in spending with $8 million in 2021, after spending its lowest third quarter amount in eight years. Industry runners-up include Huntington Ingalls Industries, which spent $3.6 million, and General Atomics, which spent $3.3 million."

HEALTH CARE GROUPS SUE BIDEN OVER SURPRISE BILLING RULES: "Two of the country's largest health care trade groups on Thursday filed a lawsuit against the Biden administration , challenging its interpretation of a key portion of the law meant to stop patients from receiving surprise medical bills, which takes effect in three weeks," our Megan Wilson writes.

— "The American Hospital Association and the American Medical Association , which are leading the court battle, say they support the No Surprises Act and the right for patients not to receive surprise medical bills, but that the administration erred when it wrote the rules determining how to calculate the amount owed when a billing dispute arises."

— "The suit, while not challenging the law itself, could effect billions of dollars in payments and potentially change how doctors and hospitals negotiate with insurers when deciding whether to join a network." It marks the latest extension of a contentious fight and a fierce lobbying battle over the bill, which Congress passed as part of its year-end spending package last December, "that often pitted medical providers against insurance companies. And many of the lawmakers who took sides in that fight are still at odds over how the Biden administration interpreted the rule."

SPOTTED at a holiday party for 131 & Counting, a nonprofit aimed at fostering a bipartisan network of women in Washington, per a PI tipster: Reps. Lois Frankel (D-Fla.), Linda Sánchez (D-Calif.), Carol Miller (R-W.Va.), Deborah Ross (D-N.C.), Debbie Wasserman Schultz (D-Fla.), Holland & Knight's Miranda Franco, Ferox Strategies' Cristina Antelo, Andrea Harris, CHIME's Mari Savickis, POLITICO's Megan Wilson, Autodesk's Kelsey Moran, Vizient's Shoshana Krilow, Management Concepts' Michelle Clark, Chelsea Jarrett, and the Billion Dollar Fund for Women's Sarah Chen.

JOIN TUESDAY FOR A WOMEN RULE 2021 REWIND AND A LOOK AHEAD AT 2022: Congress is sprinting to get through a lengthy and challenging legislative to-do list before the end of the year that has major implications for women's rights. Join Women Rule editor Elizabeth Ralph and POLITICO journalists Laura Barrón-López, Eleanor Mueller, Elena Schneider and Elana Schor for a virtual roundtable that will explore the biggest legislative and policy shifts in 2021 affecting women and what lies ahead in 2022. REGISTER HERE.

Jobs Report

— Nicolette Louissaint is joining the Healthcare Distribution Alliance as senior vice president of policy and strategic planning. She currently serves as executive director and president of Healthcare Ready.

— Lauren Townsend is joining Fox Corporation as senior vice president of communications. She currently is a consultant to Hulu and is a STARZ, Sony and NBC alum.

— Skylaur Morris is joining the German Marshall Fund as a digital marketing strategist. He previously was a senior marketing and comms manager at the Armed Forces Benefit Association.

— Irvin McCullough is joining the German Marshall Fund as press officer. He currently is deputy legislative director and national security analyst at the Government Accountability Project.

— Matthew Minor is now an account executive for Hill+Knowlton Strategies' energy and industrials team. He previously was a senior account coordinator at RUBENSTEIN and is a Mike Bloomberg and Elizabeth Madeira alum.

BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we've got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don't miss out on this influential global community. Subscribe now.

New Joint Fundraisers

Giglio Victory Fund (Defend American Values Ideals and Destiny, Giglio for Congress)

New PACs

The 1920 Collective (Hybrid PAC)
Beer Hall Project (PAC)
A Better Kansas PAC (Super PAC)
Defend American Values Ideals and Destiny (Leadership PAC: David Giglio)
LUPE PAC (Hybrid PAC)
Patriots Alliance PAC (PAC)
TEXANS FOR RESPONSIBLE GOVERNMENT PAC (Hybrid PAC)
Vote 417 (Super PAC)

New Lobbying Registrations

Alston & Bird LLP: Regional One Health
American Defense International, Inc.: Esplodenti Sabino S.P.A.
American Defense International, Inc.: International Stability Operations Association
American Defense International, Inc.: Mezzo Technologies
American Defense International, Inc.: Oxford Instruments Nanoscience
Ascend Consulting: Hope For Justice
Conaway Graves Group, LLC: Rolling Plains Cotton Growers
Farragut Partners LLP: Connect Holding LLC
Fgh Holdings, LLC (Formerly Known As The Glover Park Group LLC): Posigen Solar, LLC
Fierce Government Relations: Tsmc Arizona
Forbes-Tate: Southern Glazer'S Wine And Spirits
Holland & Knight LLP: Steel Perlot Management, LLC
Resolution Public Affairs, LLC: Tsmc Arizona
Slaiman Consulting LLC: International Code Council
Squire Patton Boggs: Mednax Services, Inc.
S. Vaca & Associates, LLC: Elbit Systems Of America, LLC
S. Vaca & Associates, LLC: Renk America, LLC
Tarplin, Downs & Young, LLC: Healthcare Leadership Council
The Aegis Group, Ltd.: City Of Midland, Texas
The Ferguson Group: Coachella Valley Association Of Governments
The Mckeon Group, Inc.: Greentech Minerals Holdings, Inc.
The Mckeon Group, Inc.: Same Day Health/Same Day Testing

New Lobbying Terminations

Allegiance Consulting, LLC: Hope For Justice
Ducks Unlimited, Inc: Ducks Unlimited, Inc
Ducks Unlimited, Inc: Ducks Unlimited, Inc
Rokala Public Affairs (Fka Mr Mark Rokala): Sunopta
S. Vaca & Associates, LLC: Pemdas Technologies & Innovations, LLC

A message from CVS Health:

At CVS Health, we're more than 300,000 caring employees ensuring millions of Americans can access health care services. We're offering COVID-19 vaccines at more than 9,600 CVS Pharmacy locations nationwide. Nothing should stand in the way of mental health and well-being, so we're increasing remote access to mental health services. We're supporting safer pregnancies and expanding access to prenatal and postpartum care via telemedicine. Recognizing the strong connection between housing and health, we're investing in affordable housing to support underserved populations and build healthier communities. Every day, CVS Health works to bring quality, affordable health care into neighborhoods, homes and hands—so it's never out of reach for anyone. Healthier Happens Together. Learn more.