Many lobbyists used to work for lawmakers on deficit panel

ByABC News
October 9, 2011, 8:54 PM

WASHINGTON -- Sixty-six former aides to lawmakers serving on a congressional panel charged with finding ways to slash the federal deficit have represented powerful defense and health care industries that face colossal cuts in government spending, a new analysis shows.

Thirty-four ex-aides to members of the deficit-cutting "supercommittee" have lobbied on behalf of hospitals, drugmakers and other health care industries, according to a tally of congressional lobbying data through June prepared for USA TODAY by the non-partisan Center for Responsive Politics. Four have worked as registered lobbyists on behalf of defense companies. An additional 28 have lobbied for both sectors.

That adds up to about 60% of the 109 current and former federal lobbyists who have worked for panel members.

"The reason that special interests hire former aides is the perception that they have access," said Bill Allison of the non-partisan Sunlight Foundation, which has called for greater transparency into the inner workings of the deficit supercommittee.

As the 12-member panel weighs how to cut at least $1.2 trillion from the deficit over 10 years, "it's not clear who's advocating for the citizens' interests," Allison said.

The stakes are high for the defense and health care industries. The panel's mandate to sharply trim the deficit makes Medicare and Medicaid — health care programs for the poor, disabled and elderly — prime targets for cuts. However, if Congress fails approve a deficit-reduction plan, automatic cuts would take effect, largely sparing payments to Medicare and Medicaid beneficiaries but slashing $600 billion in defense spending over a decade.

Twenty-six former aides to Sen. Max Baucus, D-Mont., have registered as lobbyists in the past or currently lobby the federal government, the largest number of any lawmaker on the Joint Select Committee on Deficit Reduction, as the panel is known. Baucus was elected in 1978 .

Former Baucus aides currently working as lobbyists include David Castagnetti, his former chief of staff. Castagnetti, a partner in a Washington lobbying firm, counts drugmaker Merck and the insurance company Humana among his clients, congressional lobbying records show. He did not return phone calls.

"Outside interests have no impact on Max's decisions," Baucus spokeswoman Kate Downen said in an e-mail. "Helping create jobs for Montanans and Americans is Max's No. 1 number one priority, and everything he does is done through that lens."

Among Republicans on the panel, Arizona Sen. John Kyl has the most former aides who have worked as lobbyists: 10. Kyl recently threatened to leave the panel if it recommended deeper defense cuts than what have been approved.

His former defense and national security adviser, Christine Clark, now lobbies for the Podesta Group, Washington's fourth-largest lobbying firm, and her clients this year have included BAE Systems, a major Pentagon contractor.

She declined to comment.

Aides to Kyl did not respond to interview requests.

President Obama and congressional leaders already have approved $350 billion in cuts in defense spending over a decade as part of a deficit-cutting deal reached in August.

Health care interests spent $297.2 million to lobby Congress and federal agencies in the first six months of this year, more than any other industry, according to CQ MoneyLine, which tracks lobbying. Defense companies spent $76.8 million during the same period.

Congressional aides-turned-lobbyists say they don't have an inside track.

Behrends Foster is a former chief of staff to Rep. Dave Camp, R-Mich., one of six Republicans on the panel. Foster's lobbying clients include trade groups representing health-insurance plans and prescription drugmakers.

"I make my case just like anyone else, and, hopefully, the supercommittee will judge it on its merits," he said.