Efforts to lift veil on lobbyists still a work in progress

WASHINGTON -- A month-old order President Obama touted as a way to make lobbying more transparent has shed little light on a behind-the-scenes special-interests' fight for billions in economic stimulus money, watchdog and lobbying groups say.

Federal agencies are required to disclose on their websites when they are contacted by registered lobbyists about stimulus funds, but only 70 contacts have been revealed and 10 departments have posted none, according to a USA TODAY review of 24 departments and agencies committed to spending stimulus money.

Challenges implementing the new lobbyist disclosure policy, which the administration is reviewing, underscore the difficulty Obama will face as he tries to meet a campaign pledge to reduce the power of lobbyists and special interests in Washington.

"We're looking to have more disclosure, not less," said Melanie Sloan, executive director of the watchdog group Citizens for Responsibility and Ethics in Washington, which has sought changes to the rules. "If this was supposed to give us more disclosure, why is it that you're not seeing lobbyist communications?"

Norm Eisen, special White House counsel for ethics and government reform, defended the policy, noting that agencies now hear directly from people who might receive stimulus money, rather than their lobbyists. The policy is under a 60-day review that ends this month.

"You're having the actual clients come in, the heads of small businesses, the mayors of towns and governors. Those are the people who are talking about specific projects," Eisen said. "The contacts are being done by a broader array of voices and that's a healthy thing."

Arguing that spending decisions on the $787 billion economic stimulus act "will not be made as a way of doing favors for lobbyists," Obama in March banned employees from discussing specific stimulus projects with registered federal lobbyists. Broad policy discussions are permitted, but must be disclosed on department websites. Detailed rules were released April 7.

Some departments, including Defense, Homeland Security, and Housing and Urban Development, have posted no contacts, in some cases because they have not received any, representatives for the departments said. Together, the three departments have approved spending a combined $4.8 billion in stimulus money.

Others report only a handful of lobbyist communications. The Department of Transportation, which so far has approved spending $10 billion in stimulus funds, reveals one lobbyist interaction. In that case, a lobbyist for the city of Stamford, Conn., contacted officials in March to set up a meeting with Stamford's mayor to discuss transportation projects.

Critics, including American League of Lobbyists President Dave Wenhold, note that discussions with company executives and elected officials do not have to be reported, creating a loophole where lobbying goes on — just not byregistered lobbyists.

"All meetings should be treated equally," Wenhold said. "The administration has taken the campaign rhetoric and brought it into the governance."

Craig Holman, of the non-partisan watchdog group Public Citizen, said the rules are a good first step in improving transparency in lobbying and that the administration may just need more time to iron out the kinks.

"Disclosing lobbying contacts is one of the most valuable pieces of information on influence peddling both on Capitol Hill and the executive branch," said Holman, a lobbyist. "The administration is trying to grapple with how to make it actually happen."