Democratic Lobbyists Relish Return to Washington's Power Elite
By Michael Forsythe and Kristin Jensen
Nov. 10 (Bloomberg) -- Thomas Boggs, dean of the Democratic lobbyists in Washington, boasts of a tie to incoming House Speaker Nancy Pelosi that no one in his profession can match: He has known her since they were both 4 years old.
That year, 1944, both their fathers were serving in Congress. Two decades later, at Washington's Georgetown University, Boggs counted Pelosi's future husband as a classmate and also got to know the young Steny Hoyer, now the No. 2-ranking House Democrat.
Boggs, 66, and other Democratic lobbyists have a fresh opportunity to leverage a lifetime of relationships after their party this week won control of both houses of Congress, the first time they have done so since 1992. They're now in position to guide corporate America through a new Washington as lawmakers pledge reviews of regulations on industries from oil to banking.
``The people in control of most of the House hierarchy are all very close friends of mine,'' Boggs said in an interview in his Washington office, a chewed-up cigar in his ashtray and a view of his alma mater behind him. ``For me, it will be fun to watch these guys who have been very frustrated for a very long time to be able to exercise some agenda power.''
Boggs hasn't exactly been out in the cold during the last 12 years. As a partner in Washington's largest lobbying firm, Patton Boggs LLP, he's one of the top influence brokers in the capital, with clients including drugmaker Bristol-Myers Squibb Co. and Wal-Mart Stores Inc.
Not as Welcome
The difference is that Boggs hasn't been as welcome in leadership offices in recent years. Bipartisan firms such as Patton Boggs had to depend more on their Republican lobbyists to get such meetings in the House and to some extent in the Senate, where lawmaking rules make bipartisan efforts necessary.
Democrats ``are not going to play that game,'' said Tony Podesta, 63, another top lobbyist and brother of John Podesta, who served as chief of staff to former President Bill Clinton. ``The Democrats never did it when they were in power. There was never a partisan test as to who could get a meeting.''
In the last decade, Republicans led by former House Majority Leader Tom DeLay and Pennsylvania Senator Rick Santorum, who was defeated this week, reshaped the relationship between the Capitol and K Street, the center of Washington's lobbying community. Through the Republicans' so-called K Street Project, the lawmakers worked with anti-tax advocate Grover Norquist to replace Democrats with Republicans in top lobbyist jobs and swell campaign coffers with lobbyist donations.
Unfriendly
DeLay kept a book in his office listing corporate and trade- association political action committees as ``friendly'' or ``unfriendly,'' the Washington Post reported in 1995. In 1999, the House ethics committee admonished the Texan for threatening the Electronics Industry Alliance with retaliation after it hired former Democratic Representative Dave McCurdy as president.
The practice made Democratic lobbyists less powerful even though most firms, including the ones run by Boggs and Podesta, continued to hire from both parties.
``Politics are partisan; policy is bipartisan,'' said Alex Vogel, 36, co-founder of the Washington lobbying firm Mehlman Vogel Castagnetti and former chief of staff to retiring Senate Majority Leader Bill Frist, a Tennessee Republican.
After leaving Capitol Hill, Vogel started his firm with Bruce Mehlman, the brother of Republican National Committee Chairman Ken Mehlman. The two of them made their firm bipartisan, last year adding David Castagnetti, who served as chief of staff to Montana Democratic Senator Max Baucus, as a partner. ``We needed his insights, experience and access,'' Vogel said.
Strengthening Relationships
During the years their party has been out of power, Democrats have also been strengthening relationships on the campaign trail.
Steve Elmendorf, 45, who represents clients including Union Pacific Corp. and Fannie Mae at Bryan Cave Strategies LLC in Washington, served as deputy campaign manager for Democrat John Kerry's 2004 presidential bid. Before that, he was chief of staff for six years to Pelosi's predecessor as House minority leader, former Representative Dick Gephardt of Missouri.
When New York Senator Chuck Schumer and Senate Minority Leader Harry Reid of Nevada decided they wanted Democrat Bob Casey Jr. to run against Santorum, they consulted Tony Podesta, then serving as Pennsylvania Governor Ed Rendell's re-election campaign chairman. Podesta talked to Casey and helped persuade Rendell to back him.
The weekend before the election, Podesta barnstormed through Pennsylvania with Pelosi to help candidates in the state. ``We're friends and long-time allies,'' he said. ``I have her cell phone number; she has my cell phone number.''
Loss of Influence
The biggest loss of influence in the new Congress may be felt by trade groups such as the Washington-based U.S. Chamber of Commerce, the nation's largest business lobby, and the National Federation of Independent Business -- organizations that have reliably cast their lot with President George W. Bush and the Republicans. The groups were instrumental in helping Bush pass measures to cut taxes, curb class-action lawsuits and extend trade agreements.
``The issues that small businesses care about don't have party labels,'' said Dan Danner, the NFIB's chief lobbyist. While he conceded that the group's relationships with leaders such as Pelosi are ``not strong,'' he said they have long worked with individual members, including the likely head of the small business committee, New York Representative Nydia Velazquez.
Bruce Josten, the top Chamber of Commerce lobbyist, noted that most major legislation will still require 60 votes in the Senate, meaning that with only a 51-49 edge for the Democrats, the practical power shift will be limited. And in both chambers, Democrats are unlikely to be able to muster the two-thirds majorities needed to override a Bush veto, he said.
`Market Share'
``If I don't have 51 percent market share in the House of Representatives, it doesn't matter,'' Josten said. Some issues, such as terrorism risk insurance, may actually have a better chance of passage depending on the committee chairman, he said.
The Chamber of Commerce has worked to have good relationships with Hoyer and Senate leader Reid, Josten said. And this election, the group backed Democrats such as Illinois Representative Melissa Bean, who voted for the Central American Free Trade Agreement, he said.
Even some Democrats say the shift in power may not make a gigantic difference in policy. Speaking of his Republican partners, Castagnetti, 45, said that ``the only difference is that now when we go to client meetings, I speak first, they speak second.''
``I can't wait for that,'' he added.
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