Lobbying firms start strong after record $4-billion haul in 2022
Leading Washington lobbying firms reported huge earnings Thursday, revealing business is still booming on K Street despite divided control of Congress.
Lobbyists said they’re busy influencing federal rules authorized by the Inflation Reduction Act and the CHIPS and Science Act. Corporate clients are also heavily invested in a potential permitting reform bill and the debt ceiling fight, which has the potential to cause major damage to the U.S. economy.
Law and lobbying firm Brownstein Hyatt Farber Schreck, last year’s biggest earner, brought in a record $15.8 million in lobbying revenue over the first three months of 2023.
Nadeam Elshami, Brownstein’s co-chair of government relations and former chief of staff to former Speaker Nancy Pelosi (D-Calif.), said the firm is “focused on the areas of burgeoning interest to clients including artificial intelligence, healthcare, CHIPS Act implementation and energy.”
Akin Gump Strauss Hauer & Feld, another law and lobbying giant, said it earned $13.4 million in lobbying revenue, its best first quarter to date.
“So far in 2023, we’ve seen significant activity around the debt limit, health care, appropriations and the farm bill, as well as on implementation of the IRA and the CHIPS Acts,” said Hunter Bates, co-chair of the firm’s lobbying practice and former chief of staff to Senate Minority Leader Mitch McConnell (R-Ky.).
Federal lobbying spending surpassed $4 billion for the first time in 2022, according to nonpartisan research group OpenSecrets. Lobbying spending was stagnant for much of the previous decade before skyrocketing during the pandemic.
Some on K Street had expected the yearslong lobbying gold rush to end this year — with Democrats losing control of Washington and the pandemic easing — but most of the top firms are off to a strong start.
Holland & Knight estimated that its first-quarter revenue climbed 6 percent to nearly $10.8 million. The BGR Group brought in $10.2 million, a 4 percent annual increase.
“With a deeply divided Congress, and the administration flexing its regulatory muscles, the unpredictability of policy outcomes translates into political risk for business leaders,” said Loren Monroe, a principal at the BGR Group.
Cornerstone Government Affairs saw its revenue rise from $9.2 million to $9.8 million. Invariant reported nearly $9.7 million in first-quarter earnings, up roughly 5 percent from last year.
Democrats’ Inflation Reduction Act, which spurred an explosion of lobbying from every major industry, continues to draw huge attention from corporate clients eager to influence clean energy rules. Companies are also vying for a slice of the $52 billion in subsidies to boost U.S. microchip production in the CHIPS Act.
Congress is staring down several key must-pass bills that are being heavily lobbied, including the Farm Bill and the Federal Aviation Administration reauthorization bill. Companies are also concerned about bills to overhaul railroad rules and an increased focus on firms’ operations in China.
Mehlman Consulting’s first-quarter lobbying revenue rose from $5.9 million to $6.3 million. The Tiber Creek Group saw its revenue dip from $6.3 million to $5.8 million. K&L Gates grew its revenue from $5.2 million to $5.5 million. Cassidy & Associates saw its earnings dip slightly to $5.4 million.
“Despite a mixed government, lobbying activity is expected to remain high this year,” K&L Gates partner Karishma Page said.
Van Scoyoc Associates boosted its earnings from $4.5 million to $4.8 million. Ballard Partners, a firm touting its ties to former President Trump, saw its revenue rise slightly to $4.5 million. Monument Advocacy’s revenue rose 18 percent to around $3.9 million.
Monument Advocacy CEO Stewart Verdery pointed to “fights underway around the farm bill, labor policy, and clean energy.”
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