Corporate campaign donations, a quarter later
After the January 6 riot at the Capitol, scores of companies vowed to pause their political donations. Some stopped giving to all politicians, while others shunned only those 147 Republicans who voted to overturn the presidential election results. A recent deadline for candidates to release fund-raising details for the first quarter revealed more details about how corporate giving has changed.
Companies largely kept their word. Only a handful of corporate PACs gave to the Republican objectors, whose total corporate and industry PAC donations dropped precipitously in the first quarter versus the comparable period in the last election cycle. The losers include powerful party leaders like the House minority leader Kevin McCarthy, whose two PAC donations came from the California Beet Growers Association and the National Federation of Independent Business. Mr. McCarthy had more than 100 donations from business groups in the same period in 2017.
But there are shades of gray. Some companies gave money to specific Republicans, taking the view that not all of the 147 lawmakers are the same, a stance adopted by the Chamber of Commerce (and one that DealBook hears is being contemplated by other PACs).
Toyota gave to more than a dozen of the Republicans who voted against certifying the election results. A company spokesperson said Toyota “does not believe it is appropriate to judge members of Congress solely based on their votes on the electoral certification.” The company decided against giving to unspecified others, who “through their statements and actions, undermine the legitimacy of our elections and institutions.” After the Capitol riot, the company said it would assess its “future PAC criteria,” a more vague pledge than those of many other companies.
Cigna gave to Florida’s Byron Donalds, South Carolina’s Tom Rice and other House members after it said in January it would “discontinue support of any elected official who encouraged or supported violence, or otherwise hindered the peaceful transition of power.” A spokesperson for the insurer said that congressional votes are “by definition, part of the peaceful transition of power,” and that its cutoff of donations “applies to those who incited violence or actively sought to obstruct the peaceful transition of power through words and other efforts.”
Lawmakers at the forefront of the push to overturn the election raked in cash from other sources. Senators Josh Hawley of Missouri and Ted Cruz of Texas each brought in more than $3 million for the quarter, tapping into the outrage of their individual supporters. Rep. Marjorie Taylor Greene of Georgia similarly raised $3.2 million, more than nearly every other member of House leadership. The financial haul for those with the loudest and most extreme voices, against the backdrop of the corporate pullback, highlights a shift in the Republican Party’s longtime coziness with corporate America. It also raises questions about big business’s ability to influence policy, as pressure builds on companies to weigh in on hot-button issues like restrictions on voting.
HERE’S WHAT’S HAPPENING
A decision on the pause to Johnson & Johnson’s vaccine could come soon. Dr. Anthony Fauci said that he expected federal health officials to decide whether to resume giving the shot as soon as Friday. The halt was reportedly imposed because of concerns that doctors would mistreat the rare instances of blood clots potentially related to the shot, according to The Wall Street Journal.
coalescing around 25 percent as the new rate, according to Axios — down from the 28 percent that President Biden has proposed, but up from the current 21 percent.
Crypto prices take a tumble. Over the weekend, cryptocurrencies suffered a big drop in value: Bitcoin, for instance, fell 15 percent. (It has since recovered somewhat.) The potential culprits: speculation about impending enforcement actions by financial regulators and power outages in the Chinese region that is home to major Bitcoin mining operations. Or crypto is just being volatile again.
selling his stake in Ant Group, the fintech company he co-founded, according to Reuters. The deliberations come amid pressure from Beijing officials on his business empire, including Ant and Alibaba.