Newt Gingrich - Lobbying Activities

Summary

During the 2012 elections, a number of questions were raised concerning Speaker Gingrich's actions concerning legislation after he left office. There were three areas of policy that Congressman Gingrich was both active legislatively and in taking money from customers at his company. These areas included housing programs and money taken from Freddie Mac, the passage of Medicare Part D and other programs while taking money from pharmaceutical companies and other health care companies, and the support of ethanol subsidy programs and taking money from ethanol energy lobbying groups.

Shortly after leaving office, Congressman Gingrich created the Gingrich Group. From 1999 to 2002, Congressman Gingrich and his group were paid a retainer from Freddie Mac between $25,000 to $30,000 a month. From 2006 to 2008, the group was again paid a total of $600,000 by Freddie Mac, bringing the total paid by the entity to Congressman Gingrich's group to between $1.6 and $1.8 million dollars. Sources at Freddie Mac who were familiar with the work of Congressman Gingrich and his group have stated that Gingrich was to "build bridges" to capital hill Republicans.

Congressman Gingrich's involvement with Freddie Mac became a point of contention during the 2012 elections when opponents called his work for the group lobbying and noted Freddie Mac's role in the housing crisis. News reports also discovered that Gingrich's chief contact with the group was their head lobbyist.

On November 10, 2011 Congressman Gingrich was asked about Fannie and Freddie in a GOP debate. He stated that at no point did he do any lobbying. He also stated that he only gave advice to Freddie Mac as a historian, and that when they told him they were making loans to people with no record of paying it back, he told them that the practice was insane and would cause a bubble.

Days after that debate, Congressman Gingrich's presidential campaign put out a page on their website called a "Fact Sheet" related to the Freddie Mac issue. The page again asserts that Congressman Gingrich has done no lobbying at any point in his career. It also states that while Congressman Gingrich is generally supportive of government sponsored entities, he supports breaking up Fannie Mae and Freddie Mac. Congressman Gingrich also appeared on the Greta van Susteran show and discussed the matter. He repeated the same assertions that he never lobbied for anyone. He also stated that his group was determining exactly how much they had received from Freddie Mac. He stated that they never worked with Fannie Mae, and no documentation has been discovered to dispute this assertion.

In two debates in December of 2011, Congressman Gingrich was questioned by Congressman Ron Paul and Congresswoman Michele Bachmann about his history with Freddie Mac. In responding to accusations that he used his influence in Washington DC to help Freddie Mac expand its influence, Congressman Gingrich stated that the two representatives were both mistaken and had histories of making inaccurate and false statements.

Congressman Gingrich's 2012 campaign website has initiated a response page to a number of issues raised by oppponents. In addressing the Freddie Mac issue, the page states that every contract that Congressman Gingrich signed had a provision that he would not lobby on behalf of the company hiring his services. He also states that he has never changed his viewpoint because of money that he received. The site also states that Congressman Gingrich is in support of expanding home ownership, but doing so in a manner that promotes saving and investing.

In 2003, the Gingrich Group founded the Center for Health Transformation, which is currently using the website GingrichGroup.com. That same year, the center met with a number of Congressmen in an effort to convince them to pass the Medicare Drug Prescription program known as Medicare Part D. Three Congressman have recently stated that Congressman Gingrich met with them in an effort to convince them to pass the legislation. They stated that while Congressman Gingrich may not have met the technical definition of a lobbyist, his and the group's actions would qualify as lobbying to most people. Numerous other aides were also quoted as stating that Congressman Gingrich moved votes on the Medicare Part D legislation.

As stated of their website, the function of the Center for Health Transformation is to develop solutions for health care problems ranging from information coordination to overall health care. The website touts the ability of the group to develop solutions and then present those solutions in favorable manners to the proper people. News reports have stated that the group functions by charging its members fees, and then presenting the products of those members as solutions.

According to Bloomberg companies paid fees to join the Gingrich Group ranging from $20,000 to $200,000, and gain various levels of staff attention, access to white papers and time with Gingrich. The center’s site lists three levels, from “premium” to “charter” memberships. Those paying more than $100,000 a year, could get Gingrich to speak to a private event, according to two people familiar with the arrangements.

Customers of the Center for Health Transformation and the Gingrich Group included drugmaker Johnson & Johnson (JNJ), health insurer Blue Cross and Blue Shield Association, the nation's largest insurer - WellPoint Inc. (WLP), U.K. drugmaker AstraZeneca Plc (AZN), Pfizer Inc. (PFE), and the drug industry's trade group the Pharmaceutical Research and Manufacturers of America (PhRMA). 

In a GOP debate in January of 2012, Speaker Gingrich was asked about his support for Medicare Part D and his actions to get the legislation passed. He responded in the same manner as he had before - that he was only acting as a citizen activist and that he supported the legislation. He also stated that he had hired experts to instruct him and other members of the group exactly what they could and could not do to avoid being classified as a lobbyist. He asserted that he did this for the express purpose of avoiding the label of "lobbyist" when he sought future office.

Between 2009 and 2011, Growth Energy, an ethanol industry lobbying group formed in late-2008 by a group of producers of the corn-based fuel, paid Gingrich $575,000 for advice. Congressman Gingrich has a portion of his 2012 campaign website dedicated to his support for ethanol subsidies.

 

Contracts with Freddie

Speaker Gingrich left Congress in 1999. Shortly after leaving office, he started the Gingrich Group and the company was employed by the government sponsored entity Freddie Mac. For five months from 1999 to 2002, Congressman Gingrich was paid a monthly retainer of $25,000 to $30,000. Congressman Gingrich entered into a second contract with Freddie Mac in 2006. This contract was a 2 year retainer that totaled $600,000. This brought the total amount of money that Congressman Gingrich was paid to somewhere between $1.6 and $1.8 million.

In November of 2011, Bloomberg reported that two former company executives at Fannie Mae and Freddie Mac who were familiar with his work in 2006 were stating that Gingrich was asked to build bridges to Capitol Hill Republicans and develop an argument on behalf of the company’s public-private structure that would resonate with conservatives who were seeking to dismantle the entities.

Those sources at Fannie and Freddie say that Speaker Gingrich was expected to provide written material that could be circulated among free-market conservatives in Congress and in outside organizations, said two former company executives familiar with Gingrich’s role at the firm. He didn’t produce a white paper or any other document the firm could use on its behalf, they said.

Multiple sources have indicated that Congressman Gingrich's primary contact at Freddie Mac was Mitchell Delk, Freddie Mac’s chief lobbyist.

 

Michigan Debate

On November 10, 2011 Congressman Gingrich participated in the "Your Money, Your Vote" debate in Michigan. He was asked about his work for Freddie Mac, but the question is limited to the $300,000 that his group was paid in 2006. Congressman Gingrich responds that he was a historian for the group and that he did no lobbying.

 

Fact Sheet

On November 16, 2011 Congressman Gingrich appeared on Face the Nation and discussed his work with Fannie Mae and Freddie Mac. He also dedicated a page on his campaign website to listing facts about his relationship with the entity.

 

Greta Appearance

In late November of 2011, Congressman Gingrich appeared on the Greta van Susteran show and discussed his involvement with Freddie and Fannie. He stated that he opposed any efforts in getting housing for people who cannot afford it. He stated that he gave historic strategic advice.

 

ABC Iowa Debate

On December 10, 2011 Congressman Gingrich participated in a GOP presidential debate in Iowa. In that debate, he was asked about his work with Fannie Mae and Freddie Mac by both Congressman Ron Paul and Congresswoman Michele Bachmann.

 

Center for Health Transformation

In 2003, the Gingrich Group founded the Center for Health Transformation. That same year, the company took on a number of customers who paid a fee to be a part of the group. News reports have placed that fee from $20,000 to $200,000. As a member of the group, the products of those companies were then presented to representatives in Congress as solutions to health care problems. In it's first year, the Center began to support the Medicare part D health care law, which covered prescription drugs.

The Boston Globe has reported that three Congressman who were in office at the time have stated that Speaker Gingrich spoke to them in 2003 in support of the Medicare Part D program. They stated that although Congressman Gingrich's actions may not have risen to the technical definition of lobbying, it would qualify as lobbying to most people. These representatives include former New Hampshire Representative Jeb Bradley, former Representative Butch Otter of Idaho, and US Representative Jeff Flake of Arizona.

Flake and Otter told the Iowa newspaper that proponents of the bill brought in Gingrich, who told them, “If you can’t pass this bill, you don’t deserve to govern as Republicans.”

Responding to the story in December of 2011, Congressman Gingrich stated that he did what was allowed as a citizen activist and that he was not a lobbyist.

I’m allowed to say as a citizen, ‘I’d like to see this passed,’ That’s not lobbying. I wasn’t paid by anybody to say that.

 

In November of 2011, Bloomberg reported that companies could pay membership fees of $20,000 to $200,000, and gain various levels of staff attention, access to white papers and time with Gingrich. The center’s site lists three levels, from “premium” to “charter” memberships. Those paying more than $100,000 a year, could get Gingrich to speak to a private event, according to two people familiar with the arrangements.

Bloomberg cites an August 26 press release to state that member companies included drugmaker Johnson & Johnson (JNJ), and health insurer Blue Cross and Blue Shield Association.

The article also states that WellPoint Inc. (WLP), the nation’s largest insurer by revenue, was a member of the center for five years. A spokeswoman responded in an e-mail to Bloomberg by stating that joining the group was “a way to network with various stakeholders on the best emerging ideas for improving the delivery of health care.” 

The U.K. drugmaker AstraZeneca Plc (AZN) also was a member of the center. 

Bloomberg also cites unnamed sources  to state that Pfizer Inc. (PFE), the world’s largest drugmaker, had consulting contracts with Gingrich. They also claim that the Pharmaceutical Research and Manufacturers of America, the industry’s trade group, was also a client. PhRMA stated that Gingrich's firm “was retained by the PhRMA general counsel’s office at one time to provide advice on a positioning project.” 

The Center for Health Transformation maintains a website that discusses a number of facets of the company. Two of these facets are the approach of the company and its strategy. Those pages are reproduced below. The indicate that the strategy of the company is to create health care solutions and then to get those solutions in front of the correct people to get them enacted as law at a state or federal level.

 

Fox News Iowa Debate

On December 15, 2011 Speaker Gingrich participated in a Fox News debate in Sioux City. He was again asked about his work with Fannie Mae and Freddie Mac and again stated that he did no lobbying work for the group and was never a lobbyist of any kind.

 

Answering the Attacks

On his 2012 campaign website, Congressman Gingrich addressess the issues of lobbying and his relationship with Fannie Mae and Freddie Mac in a section dedicted to answering the attacks. He asserts again that he was never a lobbyist and that his group merely offered advice on issues for the organization.

 

Florida Debate

On January 23, 2012 Speaker Gingrich participated in the GOP presidentil debate in Florida. He was again asked about his work with Freddie Mac and numerous attack ads that his opponents were running against him. In that debate, he stated that he hired experts to ensure that his company did not cross the line into lobbying.

 

Ethanol Subsidies

Bloomberg reported in November of 2011 that Growth Energy, an ethanol industry lobbying group formed in late-2008 by a group of producers of the corn-based fuel, paid Gingrich $575,000 between 2009 and 2011 for advice. Growth Energy said in a statement that it reached out to Gingrich because of his support for ethanol subsidies.

Growth Energy reached out to Speaker Gingrich and hired him because we know of his record in Congress in support of ethanol. He’s smart, engaging, and his time as a leader here is helpful to folks who are puzzling through how this town works.

 

Congressman Gingrich's 2012 campaign website maintains a "Get the Facts" page that discusses the Congressman's support for ethanol subsidies. 

 

References

[1] Website: US News Article: Is Newt Gingrich a Lobbyist? Author: Robert Schlesinger Accessed on: 01/23/2012

[2] Website: CBS News Article: Newt Gingrich not technically a lobbyist, but... Author: Stephanie Condon Accessed on: 01/23/2012

[3] Website: Washington Examiner Article: Newt Gingrich was a lobbyist, plain and simple Author: Timothy P. Carney Accessed on: 01/23/2012

[4] Website: Mother Jones Article: Newt Gingrich's Freddie Mac Delusions Author: Andy Kroll Accessed on: 01/23/2012

[5] Website: Boston.com - The Boston Globe Article: Newt Gingrich denies that his 2003 advocacy for Medicare expansion was lobbying Author: Shira Schoenberg Accessed on: 01/24/2012

[6] Website: Bloomberg Article: Gingrich Campaigning as Change Agent Profited as an Insider Author: Julie Hirschfeld Davis and Kristin Jensen Accessed on: 01/24/2012

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