Why the IRS Mess Bares Big Campaign Finance Problems

To many on Capitol Hill, the burgeoning scandal dogging the IRS looks like a simple case of partisan political targeting by an overbearing federal agency.

But the IRS controversy has laid bare a far more serious and far-reaching problem: the agency’s utter failure to keep pace with drastically changing campaign finance laws. For decades, the IRS has taken heat for its muddy rules governing politically active tax-exempt groups, a recent CQ Weekly story notes. Among other problems, the recent inspector general’s report found:

• IRS employees did not understand and bickered over the agency’s own rules, repeatedly changing course over how to screen groups seeking tax-exempt status.
• The IRS went so far as to reject the IG’s recommendation that the tax agency clear up guidelines for how to handle such groups. The IRS instead recommended  more staff training, an alternative the IG in turn rejected.
• Though lawmakers and watchdogs urged the IRS to curb deep-pocketed nonprofits spending hundreds of millions of dollars on the 2012 campaign, the IRS ignored the top-spending players and instead went after shoestring groups.

As the story notes:

The fallout has exposed an agency that lacks the tools, the will or even the rules to regulate increasingly wealthy and influential tax-exempt groups unfettered by the Supreme Court’s 2010 ruling to deregulate political spending. Full story

NRSC Wins April Fundraising by a Nose

The two Senate campaign committees turned in nearly even monthly fundraising hauls in April, marking the first month this cycle the National Republican Senatorial Committee finished ahead.

The NRSC raised $3.56 million last month and ended April with nearly $7.1 million on hand. The Democratic Senatorial Campaign Committee raised $3.54 million and had slightly more than $8.6 million on hand as of April 30. Full story

Female Hill Staffers Fundraise for Senate Democrats

Women on the Hill are making their presence known beyond the member ranks — a group of female Senate chiefs of staff have organized a Monday evening fundraiser in support of the Democratic Senatorial Campaign Committee.

CQ Roll Call reporter Meredith Shiner has the scoop over at our new Senate blog, World’s Greatest Deliberative Body:

From #WGDB:

Eleven female chiefs of staff to Democratic senators are scheduled to hold a fundraiser Monday night for the Democratic Senatorial Campaign Committee, according to an invitation for the event obtained by CQ Roll Call.

The fundraiser, billed as the “Women on The Hill Dinner,” is yet another sign that it’s not just the number of female senators that is rising, but also key staffers who are building a power base within the party.

See the invitation and more at #WGDB.

House Democrats Outraise Republicans in April

House Democrats raised $300,000 more than their Republican counterparts in the month of April.

The Democratic Congressional Campaign Committee raised $5.4 million, according to a committee aide.  House Democrats have $10.4 million in the bank and $4.1 million in debt.

The National Republican Congressional Committee raised $5.1 million. The committee has $8.7 million in cash on hand and has $6.3 million in debt.

The Hill first published the Republicans’ numbers last week, and The Washington Post first reported the Democrats’ fundraising figures.

Jack Kingston Raised $270K at Senate Fundraiser #GASEN

Kingston is running for Senate. (Bill Clark/CQ Roll Call File Photo)

Rep. Jack Kingston, R-Ga., announced he raised $270,000 at a fundraiser on May 3 — one day after he formally entered an already crowded primary for Senate.

The Kingston campaign boasted it set a fundraising record for an event in Savannah, surpassing the mark previously set by GOP presidential nominee Mitt Romney last year. Full story

House Dems Tout Recruits to Caucus

Democratic Congressional Campaign Committee Chairman Steve Israel penned a Thursday memo to the caucus boasting about their edge in recruitment and fundraising for 2014.

According to a copy of the memo obtained by CQ Roll Call, the New York Democrat outlines section-by-section how, in his view, House Democrats are on track to make gains in 2014.

“We are ahead-of-schedule on recruitment, ahead-of-expectations on fundraising, and ahead-of-the-curve on defining the Republican Congress,” Israel wrote of his second cycle leading the DCCC. Full story

House Republicans Announce Vulnerable Incumbents for Patriot Program

Walden is the chairman of the NRCC. (Bill Clark/CQ Roll Call File Photo)

The House GOP’s campaign arm unveiled the first round of vulnerable incumbents for its Patriot program on Monday morning, suggesting which members it believes could need the most help in 2014.

However, these 11 new members in their incumbent-retention program have also signed a contract pledging they will reach certain communications, fundraising and strategy benchmarks to receive support later in the cycle.

“Our Members in the Patriot Program have proven that they are ready to run aggressive, organized campaigns,” National Republican Congressional Committee Chairman Greg Walden of Oregon said in a press release.

A couple of names are notably absent from the list below, including Rep. Gary G. Miller, R-Calif., who represents a district that President Barack Obama won with 57 percent last November. House Democrats have already indicated Miller will be one of their top targets in 2014. Full story

Senate Democrats Raise Millions More Than NRSC

Bennet is the chairman of the DSCC. (Bill Clark/CQ Roll Call File Photo)

The Democratic Senatorial Campaign Committee raised nearly $7 million more than its GOP counterpart in the first three months of this year.

According to figures provided by the committees, the DSCC raised more than $5.2 million in March, which is about $2 million more than the National Republican Senatorial Committee brought in last month.

The monthly haul helped the DSCC record its best first quarter ever, raising $13.7 million over the past three months and ending March with $8.4 million in cash on hand. The NRSC raised some $6.9 million in the first three months and had $5.3 million on hand.

(See also in Roll Call: First Quarter Fundraising Winners and Losers) Full story

Senate Republicans Raised $3.2 Million in March

Moran is charged with getting Senate Republicans back to the majority in 2015. (Tom Williams/CQ Roll Call File Photo)

The National Republican Senatorial Committee raised nearly $3.2 million in March, according to a source in the committee.

The committee ended last month with almost $5.3 million in the bank.

This is a jump from February, when the committee raised $2.2 million and had $3.1 million in cash on hand. The NRSC will report $9.5 million in debt.

The NRSC, which is chaired by Sen. Jerry Moran of Kansas, got a late start on hiring this cycle, so the improvement is attributable to getting staff in place.

The Democratic Senatorial Campaign Committee did not have its fundraising numbers available Friday. Monthly fundraising reports are due to the Federal Election Commission by midnight Saturday.

Correction, 6:15 pm | An earlier post misidentified the amount of debt the NRSC reported based on inaccurate information provided by the source.

Money Reveals Some Members Aren’t Really Serious About Senate Bids (Yet)

Rahall is still considering a Senate run. (Bill Clark/CQ Roll Call File Photo)

If Reps. Steve King, Jeff Fortenberry and Nick J. Rahall II are serious about running for Senate, their campaign fundraising does not show it.

Several House members eyeing Senate bids posted meager numbers, according to Roll Call’s Senate fundraising chart for the first quarter.

In general, members raise major cash to show their political force if they are seriously weighing jumping into a Senate race. For example, Rep. Bill Cassidy, R-La., had raised $525,000 by the end of the first quarter this year, days before he announced he would challenge Democratic Sen. Mary L. Landrieu.

(See which House candidates are on Roll Call’s retirement watch list thanks to their anemic fundraising).

Here are a few House candidates who haven’t taken their names out of the mix when it comes to potential Senate bids and who reported lackluster hauls:

Full story

House Retirement Watch Clues Found in First Fundraising Reports

Coble was hospitalized in February but has returned to work. (Bill Clark/CQ Roll Call File Photo)

Not a single House member has announced they will retire in 2014, but first-quarter fundraising reports indicate some may be headed in that direction.

Most of the Senate retirement announcements have come and gone, as Senate campaign officials tend to push members to step aside early in the cycle. However, House members generally don’t reveal their intentions until about a year before the elections.

For now, a dose of weak fundraising showings from the first three months of the midterm cycle offer clues as to which members could be considering the end of their congressional tenures. Whether they actually plan to retire likely won’t be known for some time, but the lack of motivation in fundraising will continue to feed speculation about some members’ political futures. Full story

Hey, Big (House Race) Spender!

Bachmann reported spending about $200,000 more in the first quarter than she raised in that time period. (By Douglas Graham/CQ Roll Call File Photo)

Running a congressional campaign can be expensive. But it’s rare for House members to spend almost as much as they raised in the first quarter of a two-year election cycle.

Still, a few incumbents achieved this feat during the first three months of this year, according to a CQ Roll Call review of their fundraising reports.

Here’s a selection of “big spender” House members in the first quarter: Full story

First-Quarter Fundraising: Winners and Losers

Franken had a strong fundraising quarter. (Douglas Graham/CQ Roll Call File Photo)

Updated 4:00 p.m. | There were some dynamo fundraising reports filed by Monday’s deadline. And then there were some duds.

The first quarter of an election cycle is traditionally an opportunity for candidates to flex their fundraising muscles, but it also offers a glimpse at which incumbents may be vulnerable or even considering retirement.

Now that the first reports of the 2014 midterm cycle are in, here’s a quick look at some of the House and Senate candidates who performed well in the first three months of fundraising and those who may have to hustle more going forward: Full story

Michigan: Gary Peters Posts Strong Fundraising Ahead of Senate Race Decision

Peters is considering a bid for Senate. (Shira Toeplitz/CQ Roll Call File Photo)

Rep. Gary Peters, D-Mich., reported the strongest first-quarter fundraising numbers of all of the federal candidates eyeing retiring Democratic Sen. Carl Levin’s seat.

Peters, who is considering a Senate bid, raised $373,000 and reported having more than $800,000 in cash on hand at the end of March.

First-quarter fundraising reports for members of Congress were due on Monday. Peters raked in more than his potential GOP Senate rivals — Reps. Mike Rogers and Justin Amash — combined. However, Rogers maintains a large cash-on-hand advantage. Full story

Remainders: They Work Hard for the Money

Congressional candidates work hard for the money, and it shows in the first-quarter fundraising reports filed on Monday.

This quarter, seven figures marked the high bar for Senate campaign fundraising bragging rights — a large sum for hauls from this early in the cycle.

To be sure, the political fundraising market is different in every state (for example, it’s easier for incumbents to raise money in New Jersey than Alaska). But across the map, senators seeking re-election in 2014 — most of whom of are Democrats — raised big bucks.

Here’s a roundup of Monday’s fundraising announcements and filings: Full story