This article was published by ProPublica.
WASHINGTON, D.C. – As Bruce Springsteen belted out his working-class anthems on the floor of the Verizon Center last May, Rep. Peter DeFazio, D-Ore., chairman of the House Highways and Transit Subcommittee, was raising money in the privacy of a luxury suite overlooking the stage.
Ten other members of Congress were also asking for cash that night. The Democratic Congressional Campaign Committee was there, too, holding a fundraiser featuring Rep. Barney Frank, D-Mass., chairman of the Financial Services Committee. It was the ultimate in multitasking for the politicians – three hours of The Boss for free while raising thousands of dollars for their campaigns and political action committees, or leadership PACs.DeFazio’s aerie came with 18 tickets and a wet bar, televisions and a private bathroom. His campaign rented it for $2,220 from the American Trucking Associations (ATA), whose legislative agenda focuses heavily on the highway matters that pass before DeFazio’s subcommittee. DeFazio then "sold" individual seats in the box to campaign donors for $2,500 a ticket. ATA’s PAC snapped up one of those seats, which meant DeFazio effectively got the suite for free and an ATA representative got to play host.At least 19 congressional fundraisers were held at Springsteen’s two Washington concerts last year, almost half of them in boxes rented from companies or organizations with business before the committees of the lawmakers who used them.One went to Ruppersberger, the Maryland Democrat who sits on the Appropriations subcommittee that helps draft NASA’s budget. While Ruppersberger’s campaign paid ATK $7,000 for the use of the suite, ATK made a $6,000 contribution to Ruppersberger just days before the concert, effectively canceling most of the cost.
In February, after the Obama administration announced plans to scrap NASA’s Constellation program, Ruppersberger immediately told the trade publication Space News that the cuts "came out of nowhere" and could jeopardize national security. Industry analysts say the elimination of the program, which aims to return astronauts to the moon and eventually send them to Mars, could cost ATK hundreds of millions of dollars.Ruppersberger’s campaign press secretary, Heather Molino, didn’t respond to questions about Ruppersberger’s relationship with ATK or about the Springsteen fundraiser. ATK spokesman Thomas Van Leunen said the company "routinely" makes its box available to its customers and elected officials, but refused to comment further.ATK also rented a box to Murphy, the Pennsylvania Democrat who sits on the House Technical and Tactical Intelligence subcommittee, which is chaired by Ruppersberger and oversees satellite intelligence programs. ATK is a leading manufacturer of satellite components.The third ATK box went to Smith, the Nebraska Republican who sits on the House Science and Technology Committee, which oversees NASA’s research and development programs. FEC records indicate that the same day ATK was reimbursed by Smith for the box, the company contributed $2,500 to his campaign, which is what Smith was charging for a ticket to the event. ATK would not say whether the money bought a ticket for the Springsteen concert.The other lawmakers who rented boxes from companies or trade groups were also strategically positioned to help with the special interests’ legislative goals.McHenry, the North Carolina Republican who sits on the Financial Services Committee, rented a suite from the National Association of Federal Credit Unions, which has a large stake in the outcome of the financial reform legislation now before Congress. The credit union’s lobbying group also provided food and drinks as an in-kind contribution.The fundraiser was to benefit his leadership PAC, the House Conservatives Fund.Barrow, the Georgia Democrat, rented his suite from Altria, the parent company of Philip Morris and a dominant player in the global tobacco market. Barrow sits on the Energy and Commerce health subcommittee, which last year helped draft legislation to regulate tobacco products. Altria, which supported the bill, contributed $7,000 to Barrow’s campaign last year, more than offsetting the $6,666.60 the congressman paid for the suite.Crowley, the New York Democrat, rented his skybox from GE/NBC Universal. Crowley sits on the tax-writing Ways and Means Committee, a primary battlefield for President Obama’s push to repeal offshore tax-saving strategies popular with multinationals like GE.The Democratic Congressional Campaign Committee (DCCC) held its May 18 fundraiser in a suite rented from the American Resort Development Association. At the time, the association was trying to influence several major pieces of legislation being handled by the Financial Services Committee. That committee is chaired by Barney Frank, the evening’s special guest.Fair market value?Federal campaign finance laws require that lawmakers pay "fair market value" for skyboxes, just as they do for tickets to sporting or entertainment events. But it’s almost impossible for the general public to determine whether the rules were followed for the Springsteen concert.A spokeswoman for Washington Sports & Entertainment, which manages the Verizon Center, wouldn’t disclose what it charged for the lounges, saying only that they usually range from $4,000 to $8,000 for concerts, depending on the size and location of the lounge.Of the eight lawmakers who rented their boxes directly from the Verizon Center, only one paid below the range: Rep. John Carter, R-Texas, who paid just $1,568. Neither his staff nor the Verizon Center would say why.The lawmakers who rented skyboxes directly from the Verizon Center and paid within the range included Cummings, Sen. Tom Harkin, D-Iowa; and Reps. Edolphus "Ed" Towns, D-N.Y.; Darrell Issa, R-Calif.; John Carter, R-Texas; John Hall, D-N.Y.; Baron Hill, D-Ind.; and Leonard Lance, R-N.J. Harkin and Towns held fundraisers at both the spring and fall Springsteen concerts.Of the lawmakers who rented boxes from corporations, two of the seven paid less than the Verizon Center usually charges. Crowley paid GE/NBC $2,156 and DeFazio paid the trucking associations $2,220. Neither Crowley nor DeFazio responded to questions about the skybox rentals, but Lynch of the trucking associations said the Verizon Center set the price, an assertion the Verizon Center denied."I don’t believe that’s something we would do," said Sheila Francis, the spokeswoman for the Verizon Center’s management company.ProPublica researcher Kitty Bennett contributed to this report.Write to Marcus Stern at [email protected].Write to Sebastian Jones at [email protected].Want to know more? Follow ProPublica on Facebook andTwitter, and get ProPublica headlines delivered by e-mail every day.
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