Thursday, May 19, 2022

Restaurants ‘frustrated as hell’ after GOP filibusters Covid aid

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May 19, 2022 View in browser
 
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By Caitlin Oprysko

Presented by Freight Rail Works

With Daniel Lippman

RESTAURANTS LICK THEIR WOUNDS AFTER RELIEF BILL FAILS: The Senate this afternoon failed to overcome a key procedural hurdle to advance a $48 billion bill to provide Covid aid to a number of industries, effectively ending the final bid from restaurants, gyms, bus companies, venues and other small businesses for government pandemic assistance. The 52-43 vote was a massive blow to a fierce and yearlong lobbying campaign by the restaurant industry in particular, which would have received $40 billion more for an industry grant program.

— "We are frustrated as hell that a majority of the Senate voted today to begin debate on a critical piece of legislation for the rest of the nation's restaurant industry," Sean Kennedy, the top lobbyist at the National Restaurant Association, said in an interview following the vote. "But because of the filibuster, a lot of restaurant operators are literally in tears," he said. "I was on a group chat with restaurant operators during the vote. And there are operators who told me point blank, 'It's over. I'm $600,000 in debt. I'm out.'"

— In a last-ditch effort to win support for moving to debate the bill on the floor, Senate Small Business Chair Ben Cardin (D-Md.) said the bill's sponsors were willing to accept amendments to refine the bill further and bring the cost down, in response to concerns that had previously been raised by Republicans about offering another round of deficit-financed Covid relief.

— But there appeared to be questions of support from Democrats, as well. Cardin mentioned Sen. Joe Manchin (D-W.Va.) in particular, saying one of the caucus' key swing votes wanted the bill to prioritize repayment of debt. In a statement afterward, Sen. Chris Murphy (D-Conn.) called the current version of the bill "too expensive" and complained that it "does not have enough guardrails on how the money will be spent." Both senators ultimately voted to begin debate on the bill. But looking at the final tally, "today's vote was a group of senators [saying] they didn't even want to consider amending a bill to help the restaurant industry," Kennedy said.

— The bill's failure leaves in the lurch more than 177,000 restaurants that did not receive grants last year from the Restaurant Revitalization Fund. "Local restaurants across the country expected help but the Senate couldn't finish the job," Erika Polmar, head of the Independent Restaurant Coalition , said in a statement. "Neighborhood restaurants nationwide have held out hope for this program, selling their homes, cashing out retirement funds, or taking personal loans in an effort to keep their employees working and their doors open." The group estimates that more than half of the restaurants awaiting aid "will close in the next few months as a result of Congressional inaction."

— The failure wasn't for lack of trying. Food delivery app DoorDash said that a mobilization effort on Monday resulted in more than 800 letters to senators from restaurant operators urging them to support the bill. When Senate Majority Leader Chuck Schumer filed cloture on the bill earlier this week, "our phones were ringing off the hook with people wanting to really understand what is in the bill and what is the state of the industry," Kennedy said.

— In his decades in Washington, "I have never seen something where this industry, the lobbyists, the restaurant operators and everybody in between, absolutely left everything on the field," Kennedy told PI, adding that in addition to regrouping and focusing on workforce, supply chain and inflation issues, his organization will have to keep what is now an "incredibly disillusioned" grassroots engaged.

Good afternoon and welcome to PI. What's going on out there? Send K Street tips, gossip and musings: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

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WHAT'S NEXT FOR GYMS: Another loser in the Senate's failure to advance its pandemic relief bill was the fitness industry, which also mounted a major lobbying campaign arguing that the industry is one of a select few that weren't able to benefit from prior rounds of government aid. The bill would have set aside $2 billion in relief funds for gyms and fitness studios.

— "On behalf of the small business owners and millions of Americans who work in the fitness industry, we'd like to thank Senators Cardin and Wicker as well as all those who voted in favor for recognizing the harm the government did to our industry and for continuing to fight for relief," the Community Gyms Coalition and IHRSA, The Global Health & Fitness Association, said in a joint statement.

— IHRSA members are on the Hill this week for a previously scheduled fly-in, where they are pressing for a bill to allow Americans to spend FSA and HSA money on physical-activity and youth sports-related expenses. The trade group has meetings slated with Reps. Vern Buchanan (R-Fla.), Kevin Brady (R-Texas) and Ron Kind (D-Wis.), and Sens. Richard Burr (R-N.C.), Chuck Grassley (R-Iowa), Thom Tillis (R-N.C.), Ron Wyden (D-Ore.), John Cornyn (R-Texas) and Murphy.

CLUB FOR GROWTH SPENDS BIG IN BATTLEGROUNDS: Our Stephanie Murray reports that "the conservative Club for Growth is among the top outside groups spending in big battlegrounds and red states this midterm cycle, spending $33.8 million on political ads so far, according to AdImpact."

— The anti-tax group "has spent the most in North Carolina, where Rep. Ted Budd (R-N.C.) won the GOP primary to succeed retiring Sen. Richard Burr (R-N.C.) on Tuesday night. The Club spent $11.8 million to boost Budd against former Gov. Pat McCrory and former Rep. Mark Walker (R-N.C.). … The group also spent money in a House primary race in the state, spending $1.3 million supporting Bo Hines in the 13th District. Hines won that primary contest on Tuesday. The Club waged negative attacks on Kelly Daughtry, whose campaign outspent Hines' campaign."

— "The Club has another test next week, where Rep. Mo Brooks (R-Ala.) is running for Senate against Republicans Mike Durant and Katie Britt. The Alabama Senate race is the Club's third-most expensive contest so far this year. The group has spent $6.1 million backing Brooks, who was un-endorsed by former President Donald Trump in March."

— The Club's attacks on Britt, who once served as chief of staff to retiring Sen. Richard Shelby (R-Ala.), have focused on her most recent role as president and CEO of the Business Council of Alabama. "Think you know Katie Britt? Think again," one recent ad says. "Lobbyist Katie Britt, surprisingly liberal, wrong for Senate."

— The group isn't without a few high-profile losses this primary season, however. The Club endorsed former state Treasurer Josh Mandel in the GOP primary to succeed retiring Sen. Rob Portman (R-Ohio), and spent $8.9 million on Mandel's behalf despite Trump's opposition. "The group also poured $2 million into the Pennsylvania Senate race at the eleventh hour, supporting conservative commentator Kathy Barnette in the final week of the race," but Barnette finished third.

 

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MUSK SAYS GOP SUPPORT WON'T TRANSLATE INTO CAMPAIGN CASH: "Billionaire entrepreneur Elon Musk says he has no current plans to fund a Republican super PAC in the upcoming U.S. elections, including any who oppose President Joe Biden in 2024," CNBC's Brian Schwartz reports.

— Musk, "who is listed by Forbes as the wealthiest person in the world, told CNBC in an email that he's ruled out funding such an outside group. … 'I have no plans to create a super PAC,' said Musk, the CEO of Tesla and SpaceX , when asked if he plans to create his own campaign fund to oust Biden in the presidential contest. 'No super PAC anything going on,' when pressed on any plans for the November midterms."

— "Tech executives such as Sam Bankman-Fried and Peter Thiel have given at least $35 million, combined, to super PACs so far in the 2022 election cycle, according to FEC records. Thiel and Musk are part of the so called 'PayPal Mafia,' a group of executives who helped launch PayPal, the financial tech company. Musk said twice this week that he plans to vote for Republicans in upcoming elections, even though he says he previously voted for Democrats such as former President Barack Obama."

— "He didn't respond to follow up emails when asked whether he plans to donate or campaign for any candidates or issues in the upcoming elections, including whether he plans to donate directly to a GOP candidate's campaign for president, use his Twitter account as a bully pulpit against Biden and the Democrats going forward or use his extensive network of business allies to raise money for the eventual Republican nominee for president."

— "Musk could also fund a 501(c)(4) nonprofit that could take aim at Biden's policies throughout the midterms and into the 2024 election. Those types of groups don't require to publicly disclose their donors, and thus allow billionaires like Musk to remain anonymous. While Musk has said that he "would prefer to stay out of politics," his campaign donations, company lobbying efforts and tweets to his millions of followers show the opposite is true."

 

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Jobs Report

Michaela Balderston has been promoted to partner at Tusk Venture Partners. She most recently was the firm's chief communications officer, and is the first female partner at the firm and on the investment committee.

Claire Park is joining as coalitions manager at Chamber of Progress. She previously worked as a policy analyst at New America's Open Technology Institute, where she focused on expanding affordable broadband access and protecting consumer privacy.

Melissa Mann has been promoted to vice president and head of Lumen Technologies' public policy and government affairs organization. She previously served as Lumen's vice president of regional regulatory and legislative affairs for the west region.

Pili Tobar is joining Fireside Campaigns as a partner and will be overseeing the firm's communications and public relations team. She was most recently the deputy communications director at the White House, communications director for the Presidential Inaugural Committee and communications director for coalitions for the Biden campaign.

Christopher Alexander has joined Liberty Blockchain as their chief communications officer. He was previously president of 721 Government Strategies, a subsidiary of PR firm 720 Strategies.

Jack Magruder has been promoted to associate at the Herald Group.

D.J. Koessler is launching Drive Strategies, a digital and communications firm aimed at helping progressive and corporate clients. He most recently led digital at Climate Power and is a Pete Buttigieg and Hillary Clinton alum.

Anisha Singh is now executive director for the Sikh Coalition. She previously was director of judiciary and democracy affairs at Planned Parenthood.

Kellen Moore is now a government and industry relations manager at Freddie Mac. He previously was a senior manager for legislative affairs at NeighborWorks America and is a Dianne Feinstein alum.

 

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.

 
 
New Joint Fundraisers

Nevada Oregon Victory 2022 (Sens. Catherine Cortez Masto, Ron Wyden)
Scholten Victory Fund (Scholten for Congress, Michigan Democratic State Central Committee)

New PACs

The Black Vote Broward (PAC)
Coal Country Conservatives Political Action Committee (PAC)
For Colorado's Future (Super PAC)
Council Oak Civic Association (PAC)
Double Headed Gator Committee (PAC)
General John Stark PAC (Super PAC)
INDIANA CONSERVATIVE ACTION PAC (Super PAC)
LimitGov PAC (Super PAC)
The Quiet Professional PAC (Super PAC)

New Lobbying Registrations

Currentstrategic LLC: Chegg, Inc
Hobart Hallaway & Quayle Ventures, LLC: Veelo Technologies, LLC
Jmh Group, Formerly Jamian Mcelroy & Hamlin, LLC: Salam International
K&L Gates, LLP: Southern Gateway Public Green Foundation
Mehlman Castagnetti Rosen & Thomas, Inc.: Othram
Prasam: Dynamic Aviation Group, Inc.
Prasam: Sas Institute

New Lobbying Terminations

Cohen & Gresser LLP: Americans For Financial Reform
Cohen & Gresser LLP: Oldaker & Willison LLP On Behalf Of U.S. Medical Nonwovens Co.
James P. Keese: Ascellus
Tauzin Consultants, LLC: Lifevac LLC

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Even as America's freight railroads work 24/7 to keep our supply chains moving, the industry continues to take the lead on sustainability and emissions reduction. Rail moves more freight than any other method of transportation, yet only accounts for 1.9% of related greenhouse gas emissions — and our industry is working hard to get that number even lower. Every year, we continue to invest our own capital into making our equipment and infrastructure more sustainable, while teaming up with governments, universities and other experts to develop innovative ways to further reduce environmental impact. Learn how freight rail is helping the U.S. move toward a low-emission future.

 
 

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