[Congressional Record Volume 141, Number 181 (Wednesday, November 15, 1995)]
[Senate]
[Pages S17055-S17056]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        COMMERCE FUNDS LOBBYISTS

  Mr. ABRAHAM. Mr. President, I rise today to call my colleagues' 
attention to a woeful misuse of the taxpayers' money.
  As we have debated the so-called Istook amendment banning taxpayer 
subsidies for lobbyists, those opposed to reform have argued that 
current law already prohibits using grant funds for advocacy.
  But there has come to my attention a blatant example of just this 
phenomenon.
  The National Telecommunications and Information Administration, a 
part of the Commerce Department, has provided $200,000 to HandsNet, 
Inc., a California group which operates an online computer service 
focused on lobbying and available on the Internet. According to its own 
Internet-based documents, HandsNet links ``5,000 public interest and 
human service organizations across the United States.'' Among the 
services offered: ``the latest Action Alerts,'' a weekly digest 
summarizing the alerts, and daily updates on key issues.
  Mr. President, NTIA's own description of the grant award specifically 
mentions that the grant will allow ``National organizations [to] help 
local ones keep up to date by publicizing action alerts. . . .''
  And what are these action alerts? Allow me to offer a few recent 
examples:
  ``ISTOOK AMENDMENT--CALL YOUR REPRESENTATIVES''
  The message? ``Now is the time to turn up the heat. . . . So Call, E-
Mail, or Fax Your Representative Today!''
  ``GIVE PRESIDENT CLINTON A WAKE-UP CALL.''
  The message? ``If President Clinton signs immoral welfare and 
Medicaid `reform' bills, the 60-year-old guaranteed safety net for 
children will be destroyed.''
  ``CONGRESS YIELDS TO TRADITIONAL VALUES COALITION''
  The message? ``The hearing, dubbed `Parental Involvement in Social 
Issues in Education'. . . Is likely to become a tax-funded platform for 
gay bashing.''
  I could go on, Mr. President, but my point is clear. These action 
alerts are intended to facilitate and increase the effectiveness of 
lobbying on this Congress. ``HandsNet'' has a clear political agenda, 
and it is using Commerce Department funding--the taxpayers' money--to 
further that agenda.
  We cannot afford to fund this kind of political activism. It is a 
waste of taxpayers' money in times when the Government already taxes 
too much and spends even more than it takes in. It is also 
counterproductive, in times of budgetary downsizing, to fund the 
interest groups that seek to continue Government's expansion.
  The sum of $200,000 may not sound like a lot of money Mr. President, 
but it is the taxpayers' money. What is more, this practice is entirely 
too widespread. NTIA also has funded on-line activities for a number of 
other groups engaged in lobbying activities.
  Mr. President, HandsNet members include several special interest 
groups lobbying against the Istook-McIntosh-Ehrlich reform effort. Not 
surprisingly, these groups are more than happy to use taxpayer funds to 
lobby against having taxpayer funds cut off from their lobbying 
efforts.
  This brings up the problem of the Commerce Department itself. I say 
the problem of the Commerce Department because that agency itself is an 
invitation and a source of funds for lobbying activities and subsidies 
against the interests of America's taxpayers.
  The General Accounting Office has noted that the Commerce Department 
is duplicative and so unnecessary. It shares its missions with over 71 
Federal departments, agencies and offices. It controls at most 8 
percent of funding devoted to actual trade issues in our Government and 
has no unified purpose for its existence.
  What, then, do we get for our $3.6 billion in funding for the 
Commerce Department? Corporate welfare and subsidies for lobbying 
organizations.
  The HandsNet example proves how counterproductive Commerce Department 
grants really are. These grants encourage a growth industry of special-
interest lobbying, distort our deliberations here, and push us toward 
overspending and unbalanced budgets. We must stop this blatant self-
interested lobbying for the sake of our Nation and for the sake of our 
own independence as a legislative body.
  I ask unanimous consent that the full text of the Heritage 
Foundation's Government Integrity Project Report titled ``Commerce 
Department Funds Blatant Lobbying'' be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

[[Page S17056]]


               Commerce Department Funds Blatant Lobbying

              (By Marshall Wittman and Charles P. Griffin)

       No part of the money appropriated by any enactment of 
     Congress shall, in the absence of express authorization by 
     Congress, be used directly or indirectly to pay for any . . . 
     printed or written matter, or other device, intended or 
     designed to influence in any manner a Member of Congress, to 
     favor or oppose . . . any legislation . . . 18 USC 1913
       Opponents of the effort to end 40 years of political 
     corruption manifested in a system of taxpayer-subsidized 
     lobbying often state that existing federal law already 
     prohibits using grant funds for advocacy. They cite the above 
     section of the U.S. Code to defend this view.
       It appears, however, that the law is irrelevant. In recent 
     weeks, the Department of Commerce has provided $200,000 to 
     HandsNet, Inc., a California group which operates an online 
     computer service focused on lobbying and available on the 
     Internet. According to its own Internet-based documents, 
     HandsNet links ``5,000 public interest and human service 
     organizations across the United States.'' Among the services 
     offered: ``the latest Action Alerts.''
       A description of the grant award prepared by the grant 
     provider, the National Telecommunications and Information 
     Administration (part of the Commerce Department), 
     specifically mentions that the grant will allow ``National 
     organizations [to] help local ones keep up to date by 
     publicizing action alerts. . . .'' A recent selection of 
     alerts includes:
       ``Istook Amendment--Call Your Representatives 10/30/95--Now 
     is the time to turn up the heat. . . . So Call, E-Mail, or 
     Fax Your Representative Today!''
       ``Give President Clinton a Wake-Up Call--If President 
     Clinton signs immoral welfare and Medicaid `reform' bills, 
     the 60-year-old guaranteed safety net for children will be 
     destroyed.''
       ``Stop English-only Proposals in Congress 10/24/95--Call 
     and write to your Representative and Senator. Ask to meet 
     with them directly.''
       ``Congress Yields To Traditional Values Coalition--The 
     hearing, dubbed `Parental Involvement in Social Issues in 
     Education' . . . is likely to become a tax-funded platform 
     for gay bashing.''
       Each of the alerts is supported by information to describe 
     what action needs to be taken and what arguments can be used 
     to lobby Congress most effectively.


                      about the grant to handsnet

       The $200,000 awarded to HandsNet, Inc., of California was 
     to be used for the nationwide training of public interest 
     organizations on how to use the Internet more effectively. 
     The NTIA award summary states that HandsNet ``will train 250 
     organizations in Internet skills, so that they can publish 
     information on the new system.'' In addition, HandsNet will 
     ``conduct a national outreach campaign'' to introduce human 
     services groups to the Internet.
       The major component of the grant appears to be a new 
     training center in Washington, D.C. The center will be fully 
     functional around January 1, 1996, according to HandsNet 
     documents, but is housed temporarily at the headquarters of 
     Families USA (funder of the 1994 Clinton health care bus 
     caravans). The national center will be operated in 
     conjunction with the Institute for Global Communications, 
     also of California.


                             about handsnet

       In reviewing the HandsNet site on the Internet, it appears 
     that its principal purpose is explicit political advocacy. 
     The site has been used in recent months to fight welfare 
     reform and the Istook-McIntosh-Ehrlich Amendment, among many 
     other issues. The three key information components provided 
     are Action Alerts, a Weekly Digest (a summary of the alerts) 
     and daily updates on key issues. According to its Internet 
     site, HandsNet is affiliated with the Institute for Global 
     Communications, an arm of the Tides Foundation, Members of 
     HandsNet include the major opponents of the Istook-
     McIntosh-Ehrlich reform effort, including OMB Watch and 
     the Alliance for Justice.


about the telecommunications and Information Infrastructure Assistance 
                             Program TIIAP

       The Telecommunications and Information Infrastructure 
     Assistance Program is operated by NTIA in the Commerce 
     Department. Under the Clinton Administration, this program 
     has mushroomed in cost, from $10 million in FY 1994 to $25 
     million in FY 1995. In 1994 there were 92 grants; in the most 
     recent round (to be announced in mid-November, has already 
     awarded), there are 120. There also are indications that the 
     TIIAP may subsidize other lobbying activities, in addition to 
     those of HandsNet, Inc.
       According to NTIA documents, the Planned Parenthood 
     Federation of America received $300,000 in 1994 to set up a 
     ``nationwide on-line information system'' for itself and all 
     164 affiliates. Also in 1994, a California organization 
     called LatinoNet received funding to ``establish a network of 
     regional field representatives'' and ``demonstrate a model 
     for building a national grassroots information system,'' 
     among other things.
       Organizations that filed proposals and applications for 
     funding in the FY 1995 process include Families USA, ACORN 
     (which led noisy demonstrations in Congress earlier this 
     year), the Congressional Black Caucus Foundation, and 
     Citizens Fund (an affiliate of Citizen Action, an active 
     grassroots lobbying organization). It is unclear which, if 
     any, will receive funding.


                               conclusion

       The Commerce Department, through NTIA, has awarded a grant 
     to an online lobbying organization for the specific purpose 
     of engaging more groups in its Internet advocacy efforts. The 
     $200,000 gift to HandsNet, Inc., to train people in the 
     publishing of action alerts and other lobbying materials 
     represents a blatant misuse of taxpayer funds.
       Supporters of taxpayer-funded political patronage argue 
     that the current system is designed to prevent abuses. The 
     case of the Commerce Department and HandsNet, Inc., provides 
     a serious test of this claim. The fact that such a 
     significant grant could be made with no effort to hide the 
     fact that it directly funds lobbying activities clearly 
     demonstrates the need for Congress to reform this costly and 
     irresponsible form of political corruption.


                   sample action alert from handsnet

       Help Stop Medicaid and Medicare Cuts! Call Your Legislators 
     and Mail a Card to the President TODAY!
       Unless we all pitch in, Congress may demolish the Medicaid 
     and Medicare programs. During September, the House and Senate 
     will be working out the details of their budget plan, which 
     includes huge cuts in Medicaid and Medicare. If we don't stop 
     them, the health care and long term care needs of millions of 
     Americans of all ages will be in jeopardy. We need your help 
     to stop this madness.
       Campaign launched to send a message to Washington! The Save 
     Our Security (SOS) Coalition, headed by Dr. Arthur Flemming, 
     is spearheading a major campaign to put legislators on 
     notice: Don't cut the heart out of Medicaid and Medicare! The 
     SOS Coalition is made up of a wide range of children's, 
     disability, and senior groups.
       Special ``fight back'' action cards are available. These 
     cards are addressed to President Clinton and ask him to use 
     his veto power to stop cuts to Medicare and Medicaid. SOS and 
     its member groups are circulating thousands of these cards. 
     If you would like a card for yourself, or a quantity for your 
     organization to circulate, call 1-800-593-5041 and leave us a 
     message saying how many you need (be sure to give your name 
     and address slowly and clearly!).
       What you can do: Read over the card. Call your Senators and 
     your Representative using one of the toll-free numbers. Then 
     put your name and address on the postcard to the President; 
     use the space provided for a personal message to emphasize 
     your concern about Medicaid, or attach a family photo to 
     personalize your card.
       Here are a few good places to find people who may be 
     willing to participate: senior centers, day care centers, 
     clinics, union halls, churches or synagogues.
       Call the above 800 number to order cards! Provided by: 
     Families USA.

                          ____________________