Astroturfing and the “Shadow Republican Party” Fact File

 Intro

This fact file looks at the formation over the past few years of the “Shadow Republican Party,” to use the words of Jim Rutenberg of the New York Times.[i] Key is the term AstroTurfing.[ii] Essentially meaning “fake grassroots,” AstroTurfing refers to groups that appear to be grassroots-based citizen groups or coalitions, but have in fact been conceived, created, and funded solely by wealthy individuals, corporations, trade associations, political interests or public relations firms. Despite names that suggest a broad membership base, they often have little or no actual members, instead getting huge donations from special interests.

The Shadow Republican Party refers to the network of AstroTurfed Political Action Committees, nonprofits, and “action tanks” that has filled the void left by the diminished Republican National Committee. Taking advantage of the possibilities in corporate donations opened up by the Citizens United Supreme Court decision in January 2010, these groups have received enormous amounts of money from the absolutely richest Americans. This list includes billionaires like Sheldon Adelson, who despite having lost $24 billion dollars in 2008, is today America’s 13^th richest man.   

During the rundown to the 2010 elections, a flurry of donations came in from the financial sector, particularly hedge funds. Many of the hedge fund donors used to contribute to Democrats, and many in the sector still do in smaller amounts, but many have recently switched sides.[iii] It has been said that this is because of the tax and regulatory policies of Obama and congressional Democrats, combined with Obama’s “class-warfare rhetoric”, which deeply offended many in the sector.[iv] Many of them are relatively liberal on the social front, supporting things like gay marriage and stem cell research, but are heavily anti-regulation, labor, and taxes. Overall conservative donations were double liberal donations in the midterm elections.[v] This is all particularly important before the 2012 elections where commentators are expecting these rightwing groups to spend over $500 million to defeat Obama (in 2008 all outside spending totalled around $260 million[vi]).[vii]

To take one example, American Crossroads and Crossroads GPS, affiliated with former Bush strategist Karl Rove, together spent more on the 2010-midterm elections than anyone other than the Democratic and Republican National Committees. Despite their collusion with the Tea Party movement on many fronts, these groups are often headed, advised, and funded by the very Washington and Wall Street elites the Tea Partiers constantly attack.

What follows is a list of the organizations, Republican actors and billionaires behind these developments.
Groups

Alliance for America’s Future

http://allianceforamericasfuture.org/

- Head by Mary Cheney (Dick’s daughter). Looks like they spent less than

$1 million, including $270,000 against Tim Bishop (D-congress-NY). They do not disclose their donors. However, Cheney also formed Send Harry Packing, to try to defeat Harry Reid in Nevada, and Partnership for America’s Future, a 527 group required to report its donors. The Partnership’s only donor was the Alliance for America’s Future. Cheney said the three groups would spend up to $15 million on the midterms.[viii]

 

American Crossroads

http://www.americancrossroads.org/

- A 527 organization set up to help members of the Republican Party win elections.  Nearly all of the groups funding – 91% in the month of August – has come from billionaires.[ix] Karl Rove and Ed Gillespie are ‘informal advisors’. For 2010 organized a $10 million get-out-the-vote campaign and sent out 40 million pieces of political mail and made 10 million phone calls to voters in key states.[x] They also coordinated a network of two-dozen independent conservative groups. Chairman is Robert Duncan, a former RNC chairman and Steven Law is the chief executive.  They have gotten tons of money from billionaires of all types and lots from Big Finance.[xi] Detailing of their donors here. [xii]55% of their candidates won in 2010.[xiii]

American Action Network

http://americanactionnetwork.org/

-A DC based ‘action-tank’ created in February 2010 after the Citizens United decision and led by former Republican Senator Norm Coleman. As a 501(c)(4) it doesn’t have to disclose its donors.[xiv] Founded as a rightwing version of the Center for American Progress. Apparently it does little but run attack ads targeting Democrats. It shares office space with American Crossroads. Douglas Holtz-Eakin, former senior policy advisor to the McCain campaign, leads the policy arm.

-Organizers are less ideologically conservative than many Republican activists and has assured donors that they won’t address social issues.

-Donors and/or board members include Jeb Bush; Haley Barbour, governor of Mississippi and chair of the Republican Governors Association; Ed Gillespie; Fred Malek; Robert Steel; and Kenneth Langone.[xv]

o   Action Forum – policy arm 501(c)(3)

o   Action Network – will advocate for policies and candidates 501(c)(4)

 

 

 

American Future Fund

http://americanfuturefund.com/

-Formed by Iowa Republican operatives the group expected to spend up to $25 million on ads in 2010.

 

Americans for New Leadership and Liberty.com

http://liberty.com/

-Set up by Tea Party activists Eric Odom and Yates Walker and receiving strategic help from Republican activists, it sets out to evolve into the “right-wing version of MoveOn.org.”[xvi]

 

Americans for Prosperity

http://www.americansforprosperity.org/

- In 2004 Citizens for a Sound Economy split and billionaire David Koch founded the conservative non-profit Americans for Prosperity. The group has provided funding and training to the Tea Party movement. Americans for Prosperity put at least $45 million dollars into the 2010 midterm elections, giving more money to House candidates than any other organization, and gave generously to many Republican Senate candidates as well. An admittedly cursory search can’t find Koch’s name anywhere on the site. Had operations going on in 31 different states and in June members of Americans for Prosperity met with Republican strategists, the US Chamber of Commerce, Glenn Beck and others to plot campaign strategy.[xvii]

Americans for Job Security

http://www.savejobs.org/home.php

-According to the Center for Responsive Politics, founded in 1997, Americans for Job Security is “A pro-Republican, pro-business organization, Virginia-based AJS was established to directly counter labor's influence.”[xviii] It was initially founded with two $1 million donation from American Insurance Association and the American Forest and Paper Association.[xix] For years it funded attack ads on Democratic candidates around election time throughout the country. It has been used as a prime example of the kind of organization that allows moneyed interests and political operatives to sidestep campaign disclosure rules and influence elections without revealing themselves.[xx] Rather than having a broad pro-business agenda, they seem to be running extremely specific targeted campaigns.

 

-Apparently has only one employee, the 25 year old Stephen DeMaura, former executive director of the New Hampshire Republican Party whose prior political claim to fame was starting an anti-Hillary Facebook group as an undergraduate.

 

The Club for Growth

http://www.clubforgrowth.org/

-Economically far right group founded by people at the libertarian think tank the Cato Institute, the president of the National Review, and others that raises money for and endorses candidates that support a limited government, anti-tax free market ideology. It doesn’t only oppose Democrats but also moderate Republicans. In the 2003-election cycle they spent at least $21 million. In the run up to the 2004 Democratic caucuses in Iowa they ran ads attacking Howard Dean calling him and his supports "tax-hiking, government-expanding, latte-drinking, sushi-eating, Volvo-driving, New York Times-reading, body-piercing, Hollywood-loving, left-wing freak show."

 

 

Commission on Hope, Growth and Opportunity

http://hopegrowthopportunity.com/

-Founded by William Canfield, a Republican lawyer specializing in election law, the group expected to raise $25 million to help two-dozen GOP candidates.[xxi]

 

 

Concerned Taxpayers of America

http://concernedtaxpayers.us/

-Formed in September, 2010, ran attack ads against congressional Democrats. As of October they had only two donors, who each gave nearly $250,000, and were running ads in only two races, one in Oregon and one in Maryland. One of them, Congressman DeFazio (D-Oregon), co-sponsored legislation to put a tax on major hedge fund transactions. 

 

Crossroads Grassroots Policy Strategies

http://www.crossroadsgps.org/

-Spearheaded by Karl Rove. As a 501(c)(4) nonprofit corporation it is not required to disclose donor information but is believed to be secretly bankrolled by major Republican donors.[xxii] They had a $52 million fundraising goal prior to the 2010 elections.  They are already running attack ads across the country, including NY State, with the 2012 elections in mind. Factcheck.org has claimed many of its ads are ‘badly misleading’. 71% of their candidates won in 2010.[xxiii]

The First Amendment Alliance

http://www.firstamendmentalliance.com/

-Through October 2010 they reported spending about $1.5 million on independent campaigning with 100% of it supporting Republicans.[xxiv] Most of its donors are reportedly from the energy industry.[xxv]

 

FreedomWorks

http://www.freedomworks.org/

-Heavily involved with Tea Party movement. It doesn’t disclose its donors and its leadership is drawn heavily from Republican leadership and strategists. Created as a merger of Citizens for a Sound Economy (founded by Koch Industries) and Empower America in 2004 (Americans for Prosperity also came out of the dissolution of Citizens for a Sound Economy). It does not disclose its funders.

 

Republican Governors Association

http://www.rga.org/

            -A DC based 527 organization founded in 1963.

-Spent at least $65 million before the 2010 elections. Unlike the Republican Party the RGA can take unlimited contributions from corporations. Recently received $1 million from Rupert Murdoch’s News Corp and $500,000 from WellPoint, a major health insurance firm.

 

Revere America

http://www.revereamerica.org/

-Founded by ex-NY-Governor George Pataki to repeal the healthcare bill. Spent over $1 million in NY and New Hampshire races.

 

60 Plus Association

-Formed by Jim Martin and associated with Richard Viguerie’s direct mail firm, it is a self-proclaimed conservative alternative to the AARP. Planned to spend $4 million targeting nine House Democrats.

 

US Chamber of Commerce

http://www.uschamber.com/

-The largest lobbying organization in America, the Washington arm of the business community. It spent $144.5 million in 2009 on lobbying, five times as much as the next highest spender. Their 2010 political budget was around $75 million, more than double than what they spent in 2008.

 

The Weaver Terrace Group

- An informal group named in honor of Karl Rove’s street in DC, where their first meeting was held. Ed Gillespie, Fred Malek, Haley Barbour, Stephen Law, Norm Coleman, Mary Cheney (Dick Cheney’s daughter) and others.[xxvi]

 

 

Republican Actors

 

Haley Barbour

Governor of Mississippi since 2003 and the current head of the Republican Governors Association. Involved with American Action Network. RNC chairman from 1993-7.

 

Norm Coleman

Former senator from Minnesota from 2003-9. Head of American Action Network.

 

Ed Gillespie

http://www.edgillespiestrategies.com/

A Republican strategist, former Bush White House council, former Republican Party Chairman. A founder of the bipartisan lobbying firm Quinn Gillespie & Associates. He is an advisor of American Crossroads and on the Board of Directors at Resurgent Republic, a rightwing non-profit that advocates for low taxes and strong defense. 

 

Stephen Law

Head of American Crossroads. Former chief of staff to Senate Republican leader Mitch McConnell.  Was the general counsel to US Chamber of Commerce before heading American Crossroads.

 

Fred Malek

-Top GOP moneyman, key RGA fundraiser who also sits on the board of the American Action Network. He was an aide to Nixon and Bush Sr. Most famous for his central role in responding to Nixon’s “How many Jews work at the Bureau of Labor Statistics” query. Once parachuted out of a plane with Bush Sr to mark his 80^th birthday.[xxvii] Was the president of Marriott and served on the board of Fannie Mae from 2002 to 2005.

 

Karl Rove

http://www.rove.com/

Rove was the Senior Advisor and Deputy Chief of Staff to Bush until his resignation on Aug 31, 2007. Prior to this he was a Republican strategist and consultant and has continued this after his resignation, as well as contributing to Fox News, Newsweek and the Wall Street Journal.  He is said to have been recently building a “shadow Republican Party”.[xxviii]

 

Robert Steel

He is a founding member of the Advisory Board of the American Action Network. Named Deputy Mayor for Economic Development by Bloomberg in June 2010. Previously served as Under Secretary for Domestic Finance at US Treasury 2006-8 under Paulson, vice chair of Goldman Sachs (where he worked for nearly thirty years), and president and CEO of Wachovia.[xxix]

The Rich

 

Sheldon Adelson

Nevada hotel guy, Las Vegas Sands Corp, with a fortune of around $14.7 billion (making him the 13^th richest man in America, used to be the third richest until he lost $24 billion in 2008[xxx]). Gave $1 million to Republican Governors Association. He founded the 527 organization Freedom Watch in 2007 that lobbies for Americas continued involvement in the war in Iraq. A New Yorker article quoted someone saying that Adelson once said, “old Democrats were with the union and he wanted to break the back of the union, consequently he had to break the back of the Democrats.”[xxxi]

 

Kenneth Griffin and Anne Dias-Griffin

Despite losing a lot of money in the crisis they are multi-billionaires. Ken is a hedge fund manager at Citadel, one of the largest and most successful hedge funds in the world. Anne is a managing partner at Aragon Global Management, Chicago hedge fund, gave $500,000 in the midterm election’s waning days to American Crossroads.[xxxii] Ken owns a $60 million Cézanne and a $80 Jasper Johns. They each gave $500,000 to the RGA.

 

B Wayne Hughes

Chairman of Public Storage Inc, the largest self-storage company in America, with a net worth of around $9 billion. He gave $3.5 million to American Crossroads, making him amongst their largest donors if not the largest donor.[xxxiii]

 

David Koch

Co-owner with his brother Charles of the largest privately owned industrial conglomerate in the US: Koch Industries. He is known for his philanthropic contributions as well as a main bankroller of the Tea Party and anti-global warming organizations.

 

Kenneth Langone

-Venture capitalist, investment banker, who provided seed money for Home Depot. Former director of the NY Stock Exchange. Net worth put at $1.1 billion by Forbes in 2007. AAN assured him they would “not going to go near the social issues”.[xxxiv]

 

Carl H. Lindner Jr.

Cincinnati businessman whose American Financial Group includes several property and casualty insurance concerns. Forbes places his net worth at $1.7 billion, largely built through United Dairy Farmers. Previously owned Chiquita and has a stake in the Cincinnati Reds.  Gave American Crossroads $400,000 in August 2010.

 

Robert Mercer

Co-chairman of Renaissance Technologies, gave $600,000 to Concerned Taxpayers of America. Mercer is famous for having sued a Michigan model train builder for overcharging him by $2 million dollars in building a model of a location somewhere in NY State the size of half a basketball court.[xxxv]

 

Rupert Murdoch

Founder, chairman and CEO of News Corp, the parent company to Fox News. He has a net worth of $6.2 billion. News Corp gave a million to the Republican Governors Association and a million to the US Chamber of Commerce.

 

Jerry Penenchio

Forbes puts his worth at $2.1 billion, mostly made from the sale from Univision, the Spanish language station. Was a major contributor to the Schwarzenegger campaign and in 1998 he gave $1.5 million to defeat Proposition 227 that would have made teachers only be able to teach in English in California. At the time it was the largest political donation in the history of California. He gave American Crossroads $1 million in July 2010.

 

Bob Perry

Owner of Perry Homes, gave $7 million to American Crossroads in 2010. Gave $4 million to the RGA.[xxxvi] Had been a major bankroller of Swift Boat Veterans for Truth in 2004.

 

Trevor Rees-Jones

Not to be confused with Princess Di’s bodyguard, he is chief executive of Chief Oil and Gas. Gave $1 million to American Crossroads twice.

 

Robert B. Rowling,

TRT Holdings owns Omni Hotels and Gold’s Gym. Gave American Crossroads $2.5 million in donations.

 

Harold Simmons

Texas oil billionaire.  Had donated $4 million to the Swift Boat people in 2004. Financed ads linking Obama to ‘terrorist’ William Ayers in 2008, donating nearly $2.9 million. He’s super old and dresses like a televangelist. Companies he controls have given $2 to American Crossroads in 2010.

 

Paul Singer

Founder of the hedge fund Elliot Associates, Ltd and so-called “vulture investor” who heavily backed Giuliani’s failed presidential campaign.[xxxvii] He gave over $2 million to the Republican Governors Association and held fundraisers for GOP senatorial candidates in his Central Park West apartment. He and other Elliot executives also gave $500,000 to the National Republican Senatorial Committee.[xxxviii]

Quotes

‘While the 2010 campaign narrative has focused on grass roots Tea Party activists defying the Washington GOP establishment, a potentially more important story involves that establishment's quiet creation of what amounts to a new kind of unofficial but totally coordinated national Republican campaign machine. The result, Democrats fear, could be a $300 million Republican spending blitz this year, as well as a network of GOP groups primed and ready for the 2012 presidential election. The liberals' alarm is compounded by the Democrats' failure to create a similar operation of their own. While Democrats have their own firepower in the form of big-spending labor unions, the new GOP effort now appears certain to outmatch them. "These groups," says a Washington Democratic operative, "are a punch to the stomach.”’[xxxix] – Michael Crowley in Time

 

References

Andrew Goldman, “Billionaires Party”, New York Magazine, Jul 25, 2010. Available online at: http://nymag.com/news/features/67285/

Jane Mayer, “Covert Operations: The Billionaire Brothers who Are Waging a War Against Obama”, New Yorker, Aug. 30, 2010, Available online at: http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer

Koch defending himself from the New Yorker piece in a letter to the editor: http://www.kochind.com/files/Response%20to%20The%20New%20Yorker.pdf

David Alexrod, “The election campaigners we can’t see”, The Washington Post, Sept 23, 2010, Available online at: http://www.washingtonpost.com/wp-dyn/content/article/2010/09/22/AR2010092204665.html

 

Frank Rich, “The Billionaires Banking the Tea Party”, NY Times, Aug 28, 2010. Available online at: http://www.nytimes.com/2010/08/29/opinion/29rich.html

 

Kate Zernike, “Secretive Republican Donors are Planning Ahead”, NY Times, Oct 19, 2010, Available online at: http://www.nytimes.com/2010/10/20/us/politics/20koch.htm?pagewanted=1

 

Suzanne Goldenberg, “Tea Party Movement: Billionaire Koch brothers who helped it grow”, The Guardian, Oct 13, 2010, Available online at: http://www.guardian.co.uk/world/2010/oct/13/tea-party-billionaire-koch-brothers

 

http://www.nytimes.com/2010/09/26/us/26rove.html?pagewanted=2&_r=1

 

Peter Stone and Michael Isikoff, “How Wall St. exes Bankrolled GOP Victory”, MSNBC.com, Jan 5, 2011.

http://today.msnbc.msn.com/id/40913123/ns/politics/

 

List of Big Donors to Republican Governors’ Association:

http://crooksandliars.com/karoli/republican-governors-association-rakes-big-

 

After Citizens United: A Look into the Pro-Corporate Players in American Politics, by People for the American Way

http://www.pfaw.org/media-center/publications/after-citizens-united-look-into-the-pro-corporate-players-american-politic

Further Reading

Matt Bai, The Argument: Inside the Battle to Remake Democratic Politics. Penguin, 2008.

[Astro]Turf Wars, dir. Taki Oldham, 2010.