The defense sector hired dozens of former armed services committee and Department of Defense personnel last year, with more swinging through the so-called ārevolving doorā to lobby on behalf of defense sector clients for the first time in the first quarter of 2023, a newĀ OpenSecretsĀ analysis of federal lobbying disclosures found.
At least 672 former government officials, military officers and members of Congress worked as lobbyists, board members or executives for the top 20 defense companies in 2022, according to aĀ new reportĀ released by Sen.Ā Elizabeth WarrenĀ (D-Massachusetts) last Wednesday. Warrenās staff utilizedĀ OpenSecretsāĀ revolving door databaseĀ as well as corporate websites, lobbying disclosures and U.S. Senate confirmation lists to identify these individuals.
āThis practice is widespread in the defense industry, giving, at minimum, the appearance of corruption and favoritism, and potentially increasing the chance that DoD spending results in ineffective weapons and programs, bad deals, and waste of taxpayer dollars,āĀ the reportĀ says.
From 2011 through 2022, more than three-quarters ofĀ defense sectorĀ lobbyists previously worked in the federal government. These lobbyists leveraged their relationships and expertise on a range of issues, including the annual defense spending bill, anĀ OpenSecretsĀ analysis of federal lobbying disclosures found.
PresidentĀ Joe Bidenās 2024 budget proposal requested aĀ record $886 billionĀ for defense spending. Over one-third of the defense budget went to the top 100 Department of Defense contractors in 2021, the most recent year for which the U.S. government has publishedĀ contracting data.
The defense sector plusĀ BoeingĀ spent more than $38.6 million on federal lobbying during the first quarter of 2023.Ā OpenSecretsĀ codes Boeing as part of theĀ transportation sectorĀ since the company getsĀ most of its moneyĀ from commercial airplane sales, but it also designs and manufacturesĀ fighter jets, helicopters, missile systems and drones, among other military-grade aerospace systems.
Of the 708 lobbyists working on behalf of defense companies so far in 2023, at least 517 swung through the revolving door.Ā OpenSecretsĀ estimatesĀ the defense sector has hired more than 2,700 revolving door lobbyists since 2001.
āTo keep the money flowing, defense contractors frequently hire former Pentagon and other government officials to help them win defense contracts from their former colleagues,ā Warrenās report found.
One of the revolving door lobbyists who registered to lobby on behalf of new defense clients in the first quarter of 2023 is Michelle Jelnicky, who left her job as legislative director to Rep.Ā Jack BergmanĀ (R-Mississippi) in January to work as theĀ associate director of global government relationsĀ at weapons manufacturerĀ Raytheon.
Jelnicky worked on armed services and international relations policy while on Capitol Hill,Ā according to her LinkedIn. She immediately began lobbying Congress and the Department of Defense on the National Defense Authorization Act for 2024, among other provisions, according to RaytheonāsĀ first quarter federal lobbying disclosure.
Another recent revolving door lobbyist is Paul Arcangeli, who was the Democratic House Armed Services Committee staff directorĀ for 12 yearsĀ before he left in June 2022 to become a principal at Invariant, a government relations firm. Arcangeli started lobbyingĀ during the third quarter of 2022Ā and works for several defense clients including Raytheon, leveraging his expertise and relationships for his clients.
House Armed Services Committee Ranking MemberĀ Adam SmithĀ (D-Washington) recognized Arcangeli for his āindispensable role in supporting the passage of nearly one-third of every NDAA the House has ever considered,ā according toĀ Arcangeliās Invariant bio. Arcangeli āeducate[d] members on commercial items in FY 2024 National Defense Authorization Actā on behalf of Raytheon during the first quarter of 2022, according to InvariantāsĀ federal lobbying disclosure.
Neither Jelnicky nor Arcangeli responded toĀ OpenSecretsā request for comment.
A Strong First Quarter for Top Defense Contractors
The Department of Defenseās five biggest contractors āĀ Lockheed Martin,Ā Boeing,Ā Raytheon,Ā General DynamicsĀ andĀ Northrop GrummanĀ ā all reported āstrongā first quarters, even as all but Boeing spent less on federal lobbying in the first quarter of 2023 than in recent years.
TheĀ largest federal defense contractor, Lockheed Martin, spent $3.3 million on federal lobbying during the first quarter of 2023. Thatās slightly down from 2022 and the lowest amount the company has spent on federal lobbying in a single quarterĀ since 2011. The forthcoming annual defense spending bill was a top priority for Lockheed Martin lobbyists, mentioned repeatedly in the companyāsĀ first quarter lobbying disclosure.
Lockheed Martin CEO Jim TaicletĀ told investorsĀ during the first quarter earnings call they should āanticipate heightened emphasis on national security prioritization from Congress, supplemental spending requests including Ukraine and elevated demand from allies and partners.ā
āThe near peer threats posed by China and the Russian invasion of Ukraine is driving the national defense strategy and has created added demand for Lockheed Martinās advanced effective solutions,ā Taiclet said.
Raytheon, which spent $3.1 million on federal lobbying during the first quarter of 2023, also reported a strong start to the year, with sales up 10% according to aĀ presentationĀ for the first quarter earnings call with investors. Raytheon CEO Gregory HayesĀ told investorsĀ he was āvery encouragedā by Bidenās 2024 budget request of $886 billion for the Pentagon. Hayes said the biggest challenge for sales is āgetting it out the door at this point,ā with the company reporting aĀ record $180 billionĀ in backlog.
āWe still are constrained from a supply chain standpoint, although itās getting a hell of a lot better,ā Hayes said.
BoeingĀ also saw revenues from its defense, space and security programs jump from $5.5 billion during the first quarter of 2022 to $6.5 billion during the first quarter of 2023. The aerospace company spent $3.8 million on federal lobbying during the first quarter, more than itās spent during the same periodĀ since 2017.
In addition to the annual defense spending bill, Boeing lobbyists reported lobbying on a range of issues including commercial aviation policy, supply chain, Russian sanctions, relations with China and international sales. Boeing hired more revolving door lobbyists than the other top 20 defense companies,Ā Warrenās analysisĀ found.
Northrop Grumman told investors the company saw āstrongā first quarter sales and noted the āPresidentās budget request demonstrates strong support for [Northrop Grumman] programsā in itsĀ first quarter earnings presentation.
The aerospace and defense company spent $4.4 million on federal lobbying during the first three months of 2023, its lowest level of first quarter lobbying spendingĀ since 2015. In addition to lobbying on the annual defense spending bill, āExport Control Reform, Foreign Military Sales, Defense Trade, International Salesā were part of Northrop Grummanās lobbying portfolio, according toĀ first quarter lobbying disclosure.
āGlobal defense budgets are increasing as many U.S. allies modernize and expand their defense capabilities. An important part of our long-term growth strategy is focused on leveraging our portfolio to meet these growing global needs, and we continue to make progress in this area,ā Northrop Grumman CEO Kathy WardenĀ told investors.
General Dynamicsā lobbyists disclosed lobbying Congress and the State Department on āforeign military sales & direct commercial sales to include those by non-United States based subsidiaries.ā The company spent more than $3 million on federal lobbying during the first three months of 2023 onĀ issues includingĀ federal budgeting, homeland security, trade, aerospace and defense.
General Dynamics brought inĀ nearly $9.9 billionĀ during the first quarter of 2023, ā$400 million more in revenue than anticipated,ā CEO Phebe Novakovic told investors.
āObviously, we are off to a good start here,ā Novakovic said.
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