Wednesday, July 27, 2022

New York lobbyists team up

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By Caitlin Oprysko

With Brendan Bordelon and Daniel Lippman

NEW YORK LOBBYISTS TEAM UP: Half a dozen K Street alumni of New York's congressional delegation are partnering up to offer their knowledge of the Empire State and the halls of Congress alike to New York-based clients seeking insight amid a sea of new faces in the delegation.

— The new venture Purple Apple comprises Kevin Fogarty, a partner and co-founder at Ambrose who served as a top aide to former Rep. Pete King; Carissa Faña, a lobbyist at Becker & Poliakoff who previously worked for Rep. Nydia Velázquez ; Mike McKay, the CEO and founder of Empire Consulting Group who previously worked for Rep. Gregory Meeks ; and Chris Berardini, another Becker & Poliakoff lobbyist who served as chief of staff to former Rep. Michael Grimm. The name nods at New York's state fruit as well as the bipartisan makeup of the firm, which will operate like a strategic partnership, Fogarty told PI.

— The idea came about as the lobbyists discussed the litany of changes taking place in New York's delegation, Fogarty said. Eight of the state's 25 current House members are in their first or second term, while there are currently two open seats, with five retiring and two longtime members engaged in a member-on-member primary.

— "It was sort of that idea that, because New York is so diverse, whether upstate, downstate, we could offer something for everybody," he said. "And no matter what the issue was, we were able to reach out to, you know, pretty much every corner of D.C. on behalf of … New York, businesses, corporations, nonprofits, et cetera."

RESTAURANTS ASK SBA FOR UNSPENT RELIEF FUNDS: The National Restaurant Association today asked Small Business Administrator Isabel Guzman to disburse nearly $200 million in funding for a pandemic relief program to help bars and restaurants that government watchdogs say has not yet been obligated by the agency.

— A report this month from the Government Accountability Office found that the Restaurant Revitalization Fund still had $180 million sitting in its coffers. SBA officials told GAO that $24 million of those unspent funds had been set aside for litigation, according to the report, which said officials were working with DOJ attorneys to "resolve remaining litigation involving RRF and formulating a plan on how to distribute any remaining funds."

— "The American Rescue Plan Act (ARPA) of 2021 does not create a $24 million litigation set aside for the SBA to administer," Sean Kennedy , the trade group's top lobbyist, wrote in a letter to Guzman . "While ARPA does direct returned or reclaimed RRF awards to the Department of Treasury, it would be consistent with the spirit of the law to utilize all unobligated funds to address the RRF shortfall."

— The $28.6 billion in funds for the grant program quickly ran out last year, leaving more than 177,000 applicants in the lurch. Despite a monthslong lobbying push by the restaurant industry, lawmakers failed to provide the program with an additional infusion of cash, while Kennedy said advocates have been "working under the assumption that every taxpayer dime that went into the RRF is going to go to into the hands of restaurants that can prove that there is need, and that they deserve support."

— "Every week, I'm hearing from restaurant operators that are shutting down because of weakening business conditions and no hope for an RRF grant," he told PI. "And so if GAO says that SBA is still sitting on $180 million, restaurants across the country have a simple question: Why?"

Good afternoon and welcome to PI, where we're sending a hearty congratulations to our very own Daniel Lippman on his engagement ! Send K Street tips: coprysko@politico.com . And be sure to follow me on Twitter: @caitlinoprysko .

 

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SCHUMER TO DONORS, TECH LOBBYISTS: ANTITRUST BILLS AIN'T HAPPENIN': "Legislation aimed at reining in the power of giant technology companies appears to have hit a wall after Senate Majority Leader Chuck Schumer told a group of donors Tuesday evening that he doesn't believe there are enough votes to pass the measure," Bloomberg's Emily Birnbaum reports.

— "Schumer called the bill a 'high priority,' but said the Senate doesn't have the 60 votes needed to approve it, according to people who attended a fundraiser for Schumer at Bistro Bis , a restaurant near Capitol Hill. Schumer made the comments in response to a question about the measure, the American Choice and Innovation Online Act, which would prevent internet platforms from giving advantages to their own products and services."

— The majority leader "had previously affirmed that he was working with the legislation's lead Democratic sponsor in the Senate, Amy Klobuchar of Minnesota, but he hadn't said publicly that he thinks the bill's prospects are dim. He had earlier pledged to bring the legislation to a vote early this summer," but recent Covid diagnoses in the chamber have further complicated floor action.

— "Schumer made the remarks while a group of roughly two dozen protesters gathered outside of Bistro Bis, an effort to pressure Schumer into holding the vote on the tech legislation." Inside, "the fundraiser for Schumer's political action committee … had a suggested contribution of $2,500 or $5,000. Attendees included lobbyists for Microsoft Corp., American Express Co. and Procter & Gamble Co."

WHAT TIKTOK IS TALKING ABOUT TALKING ABOUT: "Leaked documents from within TikTok reveal how the company games out responses to tricky questions — and highlight what the company thinks its biggest public perception problems are," per Gizmodo's Chris Stokel-Walker. "Chief among them: China."

— Though primarily "explanations of press talking points," the internal documents "are influential even beyond TikTok's responses to everyday news stories: Language similar to what's in them appeared in a TikTok executive's testimony before the United Kingdom's parliament and in the company's letters to United States senators . TikTok declined to answer questions about the leaked materials."

— The company's talking points advise its PR team to "'Downplay the parent company ByteDance, downplay the China association, downplay AI.' All three bullet points are the second, third and fourth lines of the document, second only to 'Emphasise TikTok as a brand/platform.' Further down, the company advises its employees to stress that, though young people love TikTok, 'the app is only for users aged 13 and over.'"

THE ENEMY OF MY ENEMY: "Microsoft Corp. is rallying other big-name cloud-computing providers such as Alphabet Inc.'s Google and Oracle Corp. to press the U.S. government into spreading its spending on such services more widely, taking aim at Amazon.com Inc.'s dominance in such contracts," The Wall Street Journal's Aaron Tilley reports.

— "The software giant has issued talking points to other cloud companies aimed at jointly lobbying Washington to require major government projects to use more than one cloud service, according to people familiar with the effort and a document viewed by The Wall Street Journal."

— Microsoft also approached VMWare, Dell, IBM and HP, but "it hasn't yet asked Amazon to join the loose alliance, the people [familiar] said. Amazon dominates the cloud-infrastructure industry with a 39% share of the 2021 global market ahead of Microsoft at No. 2 with a 21% share, according to research firm Gartner Inc." A spokesperson for Amazon "called the lobbying effort a self-serving campaign that could end up requiring customers to use inferior technology."

— "Microsoft has grown frustrated about its lack of progress selling its Azure cloud services to the U.S. federal government with its rival's Amazon Web Services continuing to win most of those contracts, said some of the people familiar with its efforts. A Microsoft spokeswoman said the company 'has consistently advocated a multicloud approach as a commercial best practice, and almost all companies have adopted this.' The company, she added, works 'with other companies and trade associations to encourage the federal government to adopt the same strategy.'"

PORTMAN'S RESEARCH SECURITY AMENDMENT FIZZLES: The Senate on Tuesday blocked an effort from Sen. Rob Portman (R-Ohio) to insert an amendment that would impose tough new security restrictions on U.S. researchers in an effort to safeguard against Chinese espionage into the chamber's semiconductor and science research funding package.

— Asian American and Pacific Islander advocacy groups mounted a last-minute lobbying push against the language, warning Democratic congressional leaders it could lead to heightened discrimination against the AAPI community, but when Portman requested unanimous consent to include his amendment, Sen. Maria Cantwell (D-Wash.) quickly rose to object, suggesting that opening up the bill to new amendments could derail the legislation.

— Cantwell said she still supported Portman's amendment and that she'd push to include the language in any report that comes out of a conference committee seeking to reconcile the House and Senate's rival competitiveness bills — though there's little to indicate her colleagues are on board with restarting the conference process .

REED HEADS TO FGS GLOBAL: Anthony Reed is joining FGS Global (which was formerly Finsbury Glover Hering, which was formerly Glover Park Group) as a partner in the energy and sustainability and food and agriculture practices. He spent the past 14 years as a lobbyist at Archer Daniels Midland Company , most recently serving as interim head of global government relations. Before that, he served as a congressional liaison at EPA and was chief of staff and legislative director to former House Speaker Dennis Hastert.

MEHLMAN'S LATEST: Mehlman Castagnetti Rosen & Thomas' Bruce Mehlman is out with his latest slide deck , which zeroes in backlash threatening to upend four different trends in politics and policy. The "counter-revolutions" range from the fairly obvious — the impending revolt against unified Democratic control of Washington in November's midterms — to the less conspicuous — growing headwinds faced by the ESG movement, the end of the era of easy money, and the shakeup of longstanding tech business models amid tension with China and increased regulation in Europe.

FIRST LADY'S PRESS SECRETARY HEADING DOWNTOWN: Michael LaRosa, first lady Jill Biden's top spokesperson, is leaving the East Wing behind to join Hamilton Place Strategies as a managing director. LaRosa has been with Jill Biden since the presidential campaign, and before that served as deputy director of the House Democratic Policy Comms Committee. CNN's Kate Bennett first reported LaRosa's impending move .

OFFSHORE HELICOPTER PROVIDER OPENS D.C. OFFICE: Bristow Group, a Houston-based company that shuttles workers and cargo to offshore oil platforms and provides search and rescue services, has tapped John Seale to open an office in Washington to boost the company's lobbying on advanced air mobility development of electric helicopters and infrastructure, sustainable aviation fuel, and the upcoming FAA reauthorization bill.

— Lobbying disclosures show Bristow Group parted ways with its only outside firm on retainer, Elevate Government Affairs, last quarter. The company has reported spending $170,000 on lobbying this year. Seale, who was most recently a senior director at the American Chemistry Council and is a Steve Scalise alum, has also brought on Jim Rowland at Rowland Strategy Group as a consultant.

 

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

Kathryn Kelly has been tapped to lead the Coalition for Academic Scientific Computation, which represents universities and computing centers. She previously was executive director of the Ohio Manufacturing Institute.

Jon DeWitte will be vice president for government affairs at Travelers Insurance. He most recently was chief of staff for Rep. Bill Huizenga (R-Mich.), and is a Hill GOP veteran.

United States of Care has hired Kevin Perez-Allen as chief communications officer. He was previously a vice president for issue advocacy at BerlinRosen and is a NALEO Educational Fund alum.

Rich Luchette has been promoted to be associate vice president at Precision Strategies. He previously was a principal at the firm and was formerly Rep. David Cicilline 's communications director and senior adviser.

New Joint Fundraisers

Cotton Senate Victory 2022 (Sens. Chuck Grassley , Tom Cotton , Laxalt for Senate, NH Senate Republican Nominee Fund 2022, Republican Party Of Iowa, Nevada Republican Central Committee, New Hampshire Republican State Committee, NRSC)
Jevin Hodge Victory Fund (Friends of Jevin D. Hodge, Arizona Democratic Party)
Landsman Sykes Victory Fund (Emilia Sykes For Congress, Landsman For Congress)
HERSCHEL WALKER FOR GEORGIA VICTORY FUND (Team Herschel, Inc., NRSC, People's Champion PAC, Georgia Republican Party Inc.)
McGarvey Victory Fund (Morgan McGarvey for Congress, Kentucky State Democratic Central Executive Committee)

New PACs

People for Good Sense (Super PAC)
Progressive Victory PAC (Hybrid PAC)
Valley Works Action Fund (Hybrid PAC)

New Lobbying Registrations

Alpha Strategies, LLC: Aerovanti, Inc.
Forbes-Tate: Edward D. Jones & Co., L.P.
Forbes-Tate: Kaplan Capital, LLC
Guide Consulting Services, Inc.: Illinois Alcoholism And Drug Dependence Association
Signal Group Consulting, LLC: National Association Of State Park Directors
Todd Strategy Group: Blue Note Therapeutics
Todd Strategy Group: Karius, Inc.

New Lobbying Terminations

Guide Consulting Services, Inc.: The American Occupational Therapy Association, Inc.

 

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