The U.S. House Appropriations Committee on Wednesday said it would deny lawmaker requests for earmarks that go to for-profit companies.
House lawmakers said that had the policy been in place last year, it would have led to 1,000 fewer earmarks.
Earmarks have come under increased scrutiny by President Obama and lawmakers after several embarrassing scandals.
But supporters, like U.S. Sen. Daniel K. Inouye, D-Hawaii, believe earmarks are a tool to help get projects for their home states.
Inouye, the chairman of the U.S. Senate Appropriations Committee, criticized the House decision, indicating that there may be a clash in conference committee over spending bills with earmarks.
Inouye said lawmakers should not cede authority to the White House on spending decisions. He also defended earmarks to for-profit companies.
From his statement:
I don’t believe this policy or ceding authority to the Executive Branch on any spending decision is in the best interests of the Congress or the American people. In my view, it does not make sense to discriminate against for-profit organizations. I am not sure why we should treat for-profit earmarks any differently than non-profit earmarks.
All of our for-profit earmarks are already subject to competition. What is the rationale to eliminate them? All earmarks are also subject to the strict transparency rules that were implemented at the beginning of last year, including a single location on the Committee website that links to a list of every Senator’s earmark requests. I would also note that all Senators file statements declaring that they and their immediate families have no financial stake in any earmark request.
By increasing the transparency and reporting requirements we have erased the impropriety that could have existed when these matters were done in private. If mistakes were made by House members in the past, the new transparency rules eliminate that potential.
Moreover, I am troubled by what this policy insinuates. It seems to suggest that for-profit entities are corrupt and non-profit entities are above reproach.
The truth of the matter is that many, if not most, for-profit and non-profit entities lobby for themselves or employ lobbyists. That is how most of them make the Congress aware of their products and services. It is no secret that these meetings take place. In addition, it is no secret that many of these individuals make political contributions. All lobbyists file disclosure reports. These contributions are all fully disclosed and available for all to see on the Internet.
I find the House Appropriations Committee’s recommendation quizzical. For example, I would note in the House’s Fact Sheet on earmarks it criticizes the explosion of earmarks in the Labor-HHS, Commerce, and Transportation bills, among others, but fails to point out that virtually all of this earmark growth came in the non-profit sector. Eliminating for-profit earmarks won’t address the growth areas that the House has criticized.