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Unfinished bills, tax law preparation push lobbying spending up

Caitlin Reilly, CQ-Roll Call on

Published in News & Features

WASHINGTON — Punted deadlines on must-pass legislation drove lobbying activity and revenues, as expenditures by K Street’s biggest spenders ticked up in the first quarter of this year.

The top 10 interest groups by spending last quarter dropped $89.1 million on lobbying, up about 3% from the fourth quarter and up nearly 13% compared with the first quarter of last year, according to new disclosures filed with the House and Senate.

“There’s a pent-up demand to get issues across the finish line. The unpredictability of the legislative process has companies turning to trusted partners to help them navigate a very confusing policy and political landscape,” said Loren Monroe, a principal at BGR Group. “There are a lot of policy priorities waiting to get done, but many did get done in the last couple of weeks where literally hundreds of billions of dollars were appropriated in a relatively short order.”

Lobbying spending edged up as Congress delayed action on a number of must-pass bills, typically handled before the December recess, well into the new year. Congress finally passed a pair of fiscal 2024 spending laws in March. Attention has now turned to a $95.3 billion foreign aid package, while action on reauthorizing the Federal Aviation Administration and the multiyear agricultural policy law known as the farm bill is still to come later this year.

Preparing for next year, including election outcomes and the expiring 2017 tax cuts, has also kept private sector interest in Congress high and K Street firms busy, Monroe and others said.

“There will be a lot of change after the election,” Monroe said. “That requires a lot of thought and early engagement, as you can’t just show up the day after the election and look for a meeting. All those plans, all those people, all the opportunities for engagement will be happening throughout the summer and into the fall.”

 

The makeup of the top 10 spenders — which represented companies across business, technology, real estate, automotive and health care sectors — looked largely unchanged from the final quarter of 2023, with two exceptions. Meta Platforms, the parent company of Facebook, and General Motors Co. regained spots among the top 10 spenders, knocking off CTIA, which represents the wireless communications sector, and AARP, formerly known as the American Association of Retired Persons.

Half the groups spent more in the first quarter this year than they did in the final quarter of 2023, while the other half spent less. The U.S. Chamber of Commerce spent $23.4 million on lobbying, up 22% from the previous quarter. The Pharmaceutical Research and Manufacturers of America boosted spending by 49% to $9.6 million in the first quarter.

Meta and General Motors each increased lobbying expenditures by more than 60% from the fourth quarter, spending $7.6 million and $4.7 million, respectively, according to disclosures.

The ‘tax Super Bowl of 2025’

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