- CEO and President of the U.S. Chamber of Commerce, Tom Donahue, talks with POLITICO about his relationship with the White House, the health care debate and the Chamber's membership. Photo: John Shinkle
U.S. Chamber of Commerce President Tom Donohue says a campaign by the White House and its allies to undermine his $200-million-a-year association has largely failed — and actually has helped raise even more money for its pro-business efforts.
In a 75-minute interview with POLITICO, Donohue dismissed recent defections by Apple and at least four other companies, which quit over the Chamber’s opposition to Democratic climate change legislation — as essentially meaningless. “Members come and go all the damn time,” he said.
That’s true. But rarely — if ever — have companies jumped ship in such a public way.
Donohue made plain he believes the White House, or at least its closest allies operating on the outside, are behind a very orchestrated campaign to embarrass and undermine the Chamber.
“People that are associated with those major pieces of legislation are somewhat frustrated and trying to marginalize the Chamber as well as people that work here,” he said.
The Chamber, like Fox News, says it’s making the best of a fight it did not choose. It’s unusual for a White House to take on critics so frontally, but aides to President Barack Obama said they decided in August they needed to be more aggressive in confronting their critics. And that revs up supporters on the left, who had hoped Obama would cater to them more quickly and gives the White House a foil to help argue its case.
POLITICO reported last week the White House wants to neuter the Chamber after clashes over health care, energy and financial regulation. Obama aides have been dealing directly with corporations and their CEOs rather than going through the Chamber, which has the slogan “Fighting for Your Business.”
Senior White House adviser Valerie Jarrett has made clear to reporters that the West Wing is displeased with the Chamber. But pressed on Jarrett’s comments, Donohue said: “Look, I am not getting in a fight with those guys.” He did, however, go out of his way to highlight a speech on the Senate floor by Sen. Lamar Alexander (R-Tenn.), who warned Obama against brandishing a Nixon-style “enemies list.”
“I thought it was a good piece of advice,” Donohue added.
The White House is also trying to marginalize others, including Fox News, in addition to the Chamber.
The fight with Fox News has been more pointed and sustained — and is much less likely to abate anytime soon, while the spat with the Chamber is more delicate for the White House.
Unpopular with the left wing of the Democratic Party, the association has a lot of support among moderate and conservative House Democrats such as Pittsburgh-area Rep. Jason Altmire, who’s been harshly critical of the anti-Chamber campaign.
The Chamber has also has a lot of support outside of Washington, where it is often seen as the gathering of local businesses and not a lobbying powerhouse that can quickly blow through millions of dollars trying to influence lawmakers.
The bigger problem for the White House is the association’s money and influence with top business leaders across the country. Much has been made of the five or six companies that have quit the Chamber, but many more are privately expressing unhappiness with the administration’s tactics, Donohue said.
“There are some long-standing members that wanted to step up and help more, and I think there were some people who were [thinking about giving to us] and decided it was a good time to do it.”
In a 75-minute interview with POLITICO, Donohue dismissed recent defections by Apple and at least four other companies, which quit over the Chamber’s opposition to Democratic climate change legislation — as essentially meaningless. “Members come and go all the damn time,” he said.
That’s true. But rarely — if ever — have companies jumped ship in such a public way.
Donohue made plain he believes the White House, or at least its closest allies operating on the outside, are behind a very orchestrated campaign to embarrass and undermine the Chamber.
“People that are associated with those major pieces of legislation are somewhat frustrated and trying to marginalize the Chamber as well as people that work here,” he said.
The Chamber, like Fox News, says it’s making the best of a fight it did not choose. It’s unusual for a White House to take on critics so frontally, but aides to President Barack Obama said they decided in August they needed to be more aggressive in confronting their critics. And that revs up supporters on the left, who had hoped Obama would cater to them more quickly and gives the White House a foil to help argue its case.
POLITICO reported last week the White House wants to neuter the Chamber after clashes over health care, energy and financial regulation. Obama aides have been dealing directly with corporations and their CEOs rather than going through the Chamber, which has the slogan “Fighting for Your Business.”
Senior White House adviser Valerie Jarrett has made clear to reporters that the West Wing is displeased with the Chamber. But pressed on Jarrett’s comments, Donohue said: “Look, I am not getting in a fight with those guys.” He did, however, go out of his way to highlight a speech on the Senate floor by Sen. Lamar Alexander (R-Tenn.), who warned Obama against brandishing a Nixon-style “enemies list.”
“I thought it was a good piece of advice,” Donohue added.
The White House is also trying to marginalize others, including Fox News, in addition to the Chamber.
The fight with Fox News has been more pointed and sustained — and is much less likely to abate anytime soon, while the spat with the Chamber is more delicate for the White House.
Unpopular with the left wing of the Democratic Party, the association has a lot of support among moderate and conservative House Democrats such as Pittsburgh-area Rep. Jason Altmire, who’s been harshly critical of the anti-Chamber campaign.
The Chamber has also has a lot of support outside of Washington, where it is often seen as the gathering of local businesses and not a lobbying powerhouse that can quickly blow through millions of dollars trying to influence lawmakers.
The bigger problem for the White House is the association’s money and influence with top business leaders across the country. Much has been made of the five or six companies that have quit the Chamber, but many more are privately expressing unhappiness with the administration’s tactics, Donohue said.
“There are some long-standing members that wanted to step up and help more, and I think there were some people who were [thinking about giving to us] and decided it was a good time to do it.”
Chamber officials say companies such as FedEx and Toyota have emphasized in private conversations that they are as supportive as ever. The Chamber doesn’t publicly disclose its donors, so the claim is not easily confirmed.
Donohue insists the association will exceed its fundraising for last year by more than $10 million. And the timing of the White House attack could further pad the Chamber’s war chest.
Here’s why: The Chamber recently launched a campaign to raise $100 million for its Campaign for Free Enterprise. And a chief reason was to hit up rich individuals who are concerned about the direction Obama and the Democratic Congress are taking the economy and markets.
Many of these are new donors, the super-rich, who will fund ads and advocacy that largely help Republicans. And this will allow the Chamber to potentially raise even more money, an obsession of Donohue’s that rubs some the wrong way but keeps him atop the association at the age of 72.
Donohue insists the Chamber isn’t simply pro-Republican. Indeed, it does support some pro-business Democrats and Democratic issues. But the vast majority of its money goes to lobbying for positions supported by Republicans — and to ads that directly or indirectly help Republicans.
If the combination of Obama policies and attacks on the Chamber turns business against Democrats, it could have a big effect on elections. Many businesses, spooked by the crackdown on soft money, have been reluctant to fund groups outside of the Chamber in recent elections. If they are motivated, Republicans will have a much better chance at reclaiming the money edge that they once enjoyed but have let slip away in recent years.
Several CEOs have told POLITICO in recent weeks they have gone from genuinely uncertain about Obama’s economic views to authentically concerned. And the outcome of climate change, health care and regulation could turn much of business against the president’s goals.
Both the White House and the Chamber want to defuse tensions — for now.
After the Chamber reached out to the West Wing in an effort to lower the temperature, White House chief of staff Rahm Emanuel accepted an invitation to be the keynote speaker at a dinner for the Chamber’s board of directors on Nov. 4.
“We remain open to working with the Chamber if they have constructive ideas,” Jarrett told POLITICO. “Hopefully the Chamber will be interested in a constructive dialogue.”
Still, it’s highly likely things will get ugly again. Donohue says the Chamber is open to compromise on financial regulations and health care — even using tax increases to cover everyone without insurance, including illegal immigrants. But it’s doubtful the association would support legislation that makes it through Congress and gets signed into law.
The even bigger showdown will come on climate change legislation, which White House officials say will most likely be settled early next year.
Under pressure from MoveOn.org and other groups, Apple, PG&E and Exelon have left the Chamber over the issue — and Nike resigned from its spot on the board. And pressure on others to follow suit is often intense.
Donohue refused to say if he believes the science behind global warming. “Is the science right? Is science not right? I don’t know,” he said.
What he does know, though, is that he’ll fight anything that the Chamber believes would unfairly harm business, especially if the Environmental Protection Agency moves forward, while Congress haggles, with its authority to regulate the release of greenhouse gases.
“If we got the EPA one, then we are in deep sh-- as a country,” he said. “You want to see unemployment? You will see some.”
Donohue insists the association will exceed its fundraising for last year by more than $10 million. And the timing of the White House attack could further pad the Chamber’s war chest.
Here’s why: The Chamber recently launched a campaign to raise $100 million for its Campaign for Free Enterprise. And a chief reason was to hit up rich individuals who are concerned about the direction Obama and the Democratic Congress are taking the economy and markets.
Many of these are new donors, the super-rich, who will fund ads and advocacy that largely help Republicans. And this will allow the Chamber to potentially raise even more money, an obsession of Donohue’s that rubs some the wrong way but keeps him atop the association at the age of 72.
Donohue insists the Chamber isn’t simply pro-Republican. Indeed, it does support some pro-business Democrats and Democratic issues. But the vast majority of its money goes to lobbying for positions supported by Republicans — and to ads that directly or indirectly help Republicans.
If the combination of Obama policies and attacks on the Chamber turns business against Democrats, it could have a big effect on elections. Many businesses, spooked by the crackdown on soft money, have been reluctant to fund groups outside of the Chamber in recent elections. If they are motivated, Republicans will have a much better chance at reclaiming the money edge that they once enjoyed but have let slip away in recent years.
Several CEOs have told POLITICO in recent weeks they have gone from genuinely uncertain about Obama’s economic views to authentically concerned. And the outcome of climate change, health care and regulation could turn much of business against the president’s goals.
Both the White House and the Chamber want to defuse tensions — for now.
After the Chamber reached out to the West Wing in an effort to lower the temperature, White House chief of staff Rahm Emanuel accepted an invitation to be the keynote speaker at a dinner for the Chamber’s board of directors on Nov. 4.
“We remain open to working with the Chamber if they have constructive ideas,” Jarrett told POLITICO. “Hopefully the Chamber will be interested in a constructive dialogue.”
Still, it’s highly likely things will get ugly again. Donohue says the Chamber is open to compromise on financial regulations and health care — even using tax increases to cover everyone without insurance, including illegal immigrants. But it’s doubtful the association would support legislation that makes it through Congress and gets signed into law.
The even bigger showdown will come on climate change legislation, which White House officials say will most likely be settled early next year.
Under pressure from MoveOn.org and other groups, Apple, PG&E and Exelon have left the Chamber over the issue — and Nike resigned from its spot on the board. And pressure on others to follow suit is often intense.
Donohue refused to say if he believes the science behind global warming. “Is the science right? Is science not right? I don’t know,” he said.
What he does know, though, is that he’ll fight anything that the Chamber believes would unfairly harm business, especially if the Environmental Protection Agency moves forward, while Congress haggles, with its authority to regulate the release of greenhouse gases.
“If we got the EPA one, then we are in deep sh-- as a country,” he said. “You want to see unemployment? You will see some.”
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