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Record-breaking federal lobbying tops $2.2 billion in first half of 2024 • OpenSecrets [1]

['Anna Massoglia']

Date: 2024-08-29 20:05:00+00:00

K Street in Washington, D.C. is home to many influential lobbying firms. (Image by Bill Clark/CQ Roll Call)

Interest groups spent a staggering $2.2 billion lobbying the federal government during the first half of 2024, according to a new analysis by OpenSecrets.

This flood of money puts the year on track to set a new nominal record for federal lobbying expenditures, with even more spending expected as Congress scrambles to pass crucial appropriations bills to keep the government running.

As has become typical in recent years, appropriations and budget issues dominated lobbying efforts. With federal financing set to expire on September 30, just weeks after Congress returns from its summer recess, the pressure is on to secure a funding deal in order to avoid a government shutdown.

Resolving disputes over key issues within the appropriations bills is a top priority as the House and Senate reconvene. If lawmakers fail to reach an agreement on a full-year budget and secure approval from the White House by the end of September, a stopgap measure will be essential to keep government operations afloat while negotiations continue.

The stakes are high, as failing to pass a new appropriations bill or a stopgap measure could result in the shutdown of significant portions of the government.

Some congressional Democrats have pushed for a short-term bill that would extend funding past Election Day but expire before the end of the year while others have advocated for a longer-lasting resolution.

Health issues in the spotlight

Health issues are already attracting heavy lobbying spending and with year-end health deadlines looming, health care industry groups are rolling out new advocacy campaigns in preparation for the rush to pass a health package.

One industry that stands to be impacted is pharmaceutical benefit managers.

Also known as PBMs, pharmaceutical benefit managers act as intermediaries between pharmacies, insurance companies and pharmaceutical manufacturers to negotiate drug prices and determine which medications are covered by insurance plans.

PBMs use their purchasing power to negotiate prices and rebates that are ideally passed on to patients. Pharmacies and other dispensing entities contract with PBMs to be included in their networks, with PBMs negotiating the prices of prescription drugs on their behalf.

PBM reforms were stripped from a spending package passed in March but multiple legislative proposals to crack down on the industry are still advancing. As Congress increases scrutiny of PBMs, lobbying around the issue has also ramped up.

The Inflation Reduction Act of 2022 mandates that drug manufacturers make negotiated prices available to pharmacies and other entities that dispense medications, and manufacturers must ensure that the negotiated prices reach pharmacies, either upfront or as a refund. By 2026, pharmacies will no longer be able to charge more than these negotiated prices.

Members of both parties have argued that PBMs have contributed to the rise of drug costs and have worked to advance legislation to crack down on the industry.

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But they differ on the best approach. Proposals range from increasing transparency within the PBM industry to capping the prices they can charge for prescription drugs.

Multiple congressional committees have also started probing PBMs. At a House Committee on Oversight and Accountability hearing in July, members on both sides of the aisle pressed PBM executives about the industry’s role in the increasing cost of prescription drugs.

“Instead of prioritizing the health of Americans across the country, evidence obtained by the House Oversight Committee shows how the three largest pharmacy benefit managers colluded to line their own pockets,” House Oversight Committee Chair James Comer said in a statement.

The Pharmaceutical Care Management Association spent nearly $8.4 million on federal lobbying in the first half of this year, putting 2024 on track for another year of record spending. As scrutiny of the industry escalated, the PBM trade group’s federal lobbying spending soared to $15.4 million in 2023, an increase from $8.6 million the prior year.

But the PBM trade group’s lobbying was dwarfed by the $16.9 million spent by the Pharmaceutical Research & Manufacturers of America as the trade groups fought over drug pricing reforms. PBMs have blamed pharmaceutical companies for the increase in drug prices while drug companies have blamed PBMs. PhRMA was the third biggest spender of the first half of 2024.

Overall, the health sector accounted for about $378.6 million in the first half of 2024, continuing to outspend most other sectors.

Other health industry trade groups and companies also dominated federal lobbying spending.

The American Hospital Association spent $14.6 million during the first half of the year and the American Medical Association spent $12.6 million while Blue Cross/Blue Shield spent $14.5 million during the first half of the year.

Industries race to influence

Expensive lobbying efforts were not limited to the health sector. Trade groups from other areas are also among the top lobbying spenders.

The U.S. Chamber of Commerce spent over $38.2 million on lobbying during the first half of 2024, making it the top lobbying spender during that time. The chamber lobbies on a wide range of business issues with priorities including the extension of tax cuts under the Tax Cuts and Jobs Act signed into law by President Donald Trump in 2017.

The National Association of Realtors was the second biggest lobbying spender of the first half of the year with $31.4 million paid to federal lobbyists during the first two quarters.

The real estate industry is grappling with upcoming changes to agent commissions, following a $418 million settlement that will require the National Association of Realtors to adjust existing commission rules.

The tech industry also continued to invest heavily in lobbying, with multiple Big Tech companies outpacing their spending during the same period last year.

CTIA, which represents the U.S. wireless communications industry, spent $8.3 million on federal lobbying during the first half of the year.

Facebook parent company Meta spent nearly $13.6 million on federal lobbying during the first half of 2024, outpacing every prior year.

Alphabet Inc., which owns Google and YouTube, spent nearly $7.3 million on federal lobbying during the first half of the year.

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[1] Url: https://www.opensecrets.org/news/2024/08/record-breaking-federal-lobbying-tops-2-billion-first-half-2024/

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