Sunlight Foundation

Is Obama's Revolving Door Rule Bad Policy?

Jacob Weisberg has a good article up on Slate (also, Newsweek) on whether the revolving door policy instituted by President Obama is constructive. Weisberg's contention is that the policy, by being overly broad, places both profiteering, private interest lobbyists in the same barrel as public interest, non-profit lobbyists, preventing would be public servants from serving simply due to an arbitrary designation. Is this correct... or just slightly overblown?

The revolving door policy, as established by the President under an Executive Order, states that no one who was a registered lobbyist in the past two years may take a position at an agency if they lobbied that agency or if the agency handles issues that they were hired to lobby on. This policy comes with a possibility of a waiver, which has been applied to a few appointees.

These appointees pretty fairly split between what most would consider the more objectionable private interest lobbyists--William Lynn, Raytheon lobbyist turned deputy Secretary of Defense and Mark Patterson, Goldman Sachs lobbyist turned chief of staff to Treasury Secretary Timothy Geithner-- and public interest lobbyists--William Corr, anti-tobacco lobbyist turned deputy Secretary of Health and Humans Services, Jocelyn Frye, National Partnership for Women and Families gerneral counsel turned Director of Policy and Projects in the Office of the First Lady, and Cecilia Muñoz, Senior Vice President for the National Council of La Raza turned Director of Intergovernmental Affairs. While the administration is nowhere close to filling all of the key jobs, reports show that Obama is ahead of recent presidents in appointing his team. It doesn't seem that this policy is necessarily hampering his ability to fill these important jobs.

The key case, and most glaring one, that Weisbarg points to--previously reported by Laura Rozen at Foreign Policy--is that Tom Malinowski, the director of the Washington office of Humans Rights Watch, a pro-human rights organization, was forced to withdraw his name from consideration to head the State Department's Democracy, Human Rights, and Labor Bureau after the administration came under attack for granting the first lobbyist waiver to Raytheon lobbyist William Lynn.

This is where the problem becomes acute and where Weiberg gets it right. As the administration set up a high legal barrier to employing lobbyists, helped by a whole bunch of anti-lobbyist rhetoric during the 2008 campaign, it became difficult for them to bend those rules by granting waivers. Had the administration simply chosen to self-select which lobbyists would be appropriate to hire, as they seem to be doing under the waiver rule, without implementing an Executive Order, they wouldn't face the political peril of constantly being called out for issuing waivers to circumvent their own rule, thus driving away public servants like Malinowski. Weisberg calls these rules "counterproductive," when the same effect could have been made through "explanation and symbolism."

Of course, the counter argument would be that anything less than a legally binding rule would not have the power to constrain the ever-spinning revolving door. We've seen numerous instances, on ethics and transparency issues, where legally binding language is required in the absence, or even existence, of good intentions. If the Obama team was sincere on keeping lobbyists out of government, did they need to issue this order? And is there a way out of lumping public interest lobbyists with those working for the private interest?

To the latter question, I'd say no. Not only is the administration not going back on their Executive Order to the type of policy Weisberg supports, but creating a distinction between for-profit and non-profit lobbyists would cause its own set of problems. There are quite a few non-profits that are fronts for, or act in support of, a particular industry. These non-profit lobbyists are absolutely different from public interest lobbyists. This could require yet another distinction, signalling that the whole process of unlumping registered lobbyists would create even further arbitrary and counterproductive decisions. Even worse, some lobbyists may simply choose to deregister to not face the future stigma. As Weisberg writes, "Allowing a few arbitrary exceptions to this kind of bad policy only makes the unfairness worse."

It turns out that Washington lobbyists are not quite the uniform bunch of scoundrels that campaign rhetoric might have us believe. Crafting a revolving door policy brings these differences out for all to see. Is the current policy acceptable or should it be altered? And what would an ideal revolving door policy look like?

Lobbyists Are People Too

A large number of President Obama's supporters were outraged that one day after instituting strict lobbying restrictions for his administration he turned around and gave a waiver to Bill Lynn, Raytheon lobbyist, to be the deputy secretary of Defense. Despite all of candidate Obama's anti-lobbyist rhetoric, President Obama has found that, in many cases, he wants lobbyists in his administration.

Lynn was the first to receive a waiver of the rules in Executive Order 13487 restricting lobbyists from entering the administration in a position that has authority over issues on which they previously lobbied. It looks like the President's nominee for deputy secretary of Health and Human Services will require a waiver as well:

Obama plans to nominate William Corr, who had been executive director of the Campaign for Tobacco-Free Kids and a registered lobbyist since 2000, to be deputy secretary of Health and Human Services (HHS).

But nominating Corr would require the White House to waive Obama’s Jan. 21 executive order against lobbyists serving in his administration. The order says a person may not “seek or accept employment with any executive agency that I lobbied within the two years before the date of my appointment.”

Of course, as The Hill notes, this does not irk Obama's supporters as Corr's lobbying, unlike Lynn's defense lobbying, is more closely ideologically aligned with them. (Lynn will also be in charge of a department that contracts with his former client to the tune of $66 billion over the past 8 years.) When using a broad brush to define "Washington lobbyists" these kinds of distinctions are blurred and it is hard to claim that one is more acceptable than another.

Obama has found many former lobbyists to work in his administration in positions that do not fall under EO 13487. Bara Vaida at the National Journal runs a list (you can read her story on the subject here):

Cassandra Butts, deputy counsel (2005-2006, registered to lobby for Center for American Progress)

David Axelrod, senior adviser (2005, Schwabe, Williamson & Wyatt)

Michael Strautmanis, chief of staff to senior adviser Valerie Jarrett (2005, American Association for Justice)

Cecilia Munoz, director of intergovernmental affairs, (2008, National Council of La Raza)

Patrick Gaspard, White House political director (2007-2008, SEIU)

Dan Turton, deputy director of legislative affairs (2003-2008, Timmons & Co.)

Emmett Beliveau, director of advance (2007, Patton Boggs)

Thomas Donilon, deputy at the National Security Council (2008, O'Melveny & Myers; 2005, Fannie Mae)

John Brennan, homeland security adviser (2008, the Brennan Group; 2006, MWW Group)

David Medina, deputy chief of staff to Michelle Obama (2008, US Global Leadership Campaign)

Jocelyn Frye, deputy assistant to Michelle Obama (2008, National Partnership for Women & Families)

Jay Heimbach, legislative affairs (2001-2006, Ricchetti Inc.)

Denise Wilson, legislative affairs (manager of government relations at Motorola, but not in lobbying database)

Sean Kennedy, legislative affairs (2005-2006, SBC Communications -- now AT&T)

Everyone should continue to watch to see if the issuance of waivers remains rare. So far, it seems that many lobbyists are being frozen out of a job. Some lobbyists are even considering moving into jobs in Congress to "cleanse" themselves of the lobbyist taint so they can eventually gain employment in the administration. That just sounds terrible for Congress. They should not allow themselves to be perceived as a detoxicification center.

William Lynn and New Lobbying Restrictions

The new Executive Order on ethics and lobbying issued by President Obama has caused some problems for the nomination of William Lynn to be Deputy Secretary of Defense in the new administration. As recently as last year, Lynn worked as a lobbyist for the defense giant Raytheon, the recipient of numerous, large government contracts. The new lobbying restrictions disallow any appointee from occupying a position that relates to an issue that they lobbied on within the last two years. A close ally of the President, Sen. Claire McCaskill, has raised objections to Lynn's nomination.

The administration says that it will make an exception for Lynn. The Executive Order contains a section on the provision of waivers in special circumstances. Here is the relevant section:

3 (a)  The Director of the Office of Management and Budget, or his or her designee, in consultation with the Counsel to the President or his or her designee, may grant to any current or former appointee a written waiver of any restrictions contained in the pledge signed by such appointee if, and to the extent that, the Director of the Office of Management and Budget, or his or her designee, certifies in writing (i) that the literal application of the restriction is inconsistent with the purposes of the restriction, or (ii) that it is in the public interest to grant the waiver.  A waiver shall take effect when the certification is signed by the Director of the Office of Management and Budget or his or her designee.

(b)  The public interest shall include, but not be limited to, exigent circumstances relating to national security or to the economy.  De minimis contact with an executive agency shall be cause for a waiver of the restrictions contained in paragraph 3 of the pledge.

I'm going to assume that the "exigent cirmstance" here relates to national security. Clearly, while senators and others may raise questions about the appointment, the administration wrote wiggle room into the order that makes Lynn's appointment possible.