More than a dozen US companies that signed a letter in 2021 urging Congress to enhance the Voting Rights Act are still donating to state political groups that actively aim to weaken this legislation, according to a campaign finance watchdog.
Researchers at the Center for Political Accountability (CPA), a nonpartisan group that monitors financial disclosures, found that companies – including Airbnb, Door Dash, Target and Zillow – which endorsed the letter are giving money to organizations known as 527 groups that support crucial state races, based on data shared exclusively with the Guardian.
Four long-time donors to these organizations, Amazon, Google, Meta and Microsoft, had either completely stopped their contributions or reduced them for Republican and Democratic groups during the 2022 midterms but have started donating again for the current election cycle.
The January 6 insurrection led to a brief period of reflection among corporate leaders, many of whom condemned Donald Trump’s role in sparking the violence. The Republican Attorneys General Association (Raga), a 527 group, came under fire after it was revealed that they sent out robocalls encouraging people to attend a “Stop the Steal” rally outside Congress on January 6, 2021 – just before the insurrection. Raga’s leaders later claimed they were unaware of these robocalls.
However, these companies have resumed their donations to Raga and some have even started contributing for the first time. Google’s donation dropped from $100,400 in the 2018 elections down to $50,000 in 2022. So far this election cycle, they have contributed $325,000 to Raga.
Bar chart of tech company contributions to Republican attorneys general races
These donations highlight a broader reversal trend among many in corporate America who publicly criticized Trump and Republicans after January 6 but then changed course when he returned to office.
The 527 organizations are recognized as tax-exempt political groups overseen by the Internal Revenue Service (IRS). They often operate quietly compared to political action committees (Pacs) regulated by the Federal Election Commission (FEC), yet experts say these groups hold substantial sway at the state level by backing significant swing races – with public corporations being their primary financial supporters.
Compared to their counterparts in Washington who often face gridlock, state leaders and legislators can drive policies that ultimately affect national issues more directly.
State attorneys general play crucial roles in litigating cases before the US Supreme Court that overturn decades of established precedent. A major win was handed down by the court when it ruled favorably for a Republican attorney general from Alabama in Dobbs v Jackson Women’s Health Organization – resulting in Roe v Wade being overturned and granting states power over abortion legislation.
Earlier this summer, another victory was awarded to a Republican attorney general from Louisiana when her case Louisiana v Callais overturned essential parts of the Voting Rights Act.
Raga commended this ruling saying in May statement that “no group of elected officials make a bigger impact than Republican AGs”.
For groups mainly active at state levels, what might be seen as small amounts of cash within federal campaigns can create significant effects on critical state elections.
“A $100,000 contribution that ends up impacting a handful of state races can flip a state legislature or change an AG’s office,” said Jeanne Hanna, CPA’s vice-president of research. “It’s a trickle-up effect on state policy leading into federal policy for much less money involved. So while those figures may not be huge or flashy now; their impact could be even greater.”
Overall funding is showing Republican 527 groups raising more than their Democratic counterparts during this election cycle; much of their financial support comes from public companies. Key Republican state organizations have raised $240 million so far during this election cycle while Democratic ones accumulated $197 million.
These include Raga and the Republican Governors Association (RGA) which play vital roles supporting figures like former Texas attorney general Ken Paxton along with Texas governor Greg Abbott and Georgia governor Brian Kemp.
Another influential group is the Republican State Leadership Committee (RSLC), focusing on competitive legislative races; they’ve collected around $55 million thus far this election cycle. It remains uncertain how much corporate money has contributed since part of its contributor data hasn’t been filed yet according to CPA.Bar chart showing trend of Republicans out-raised Democrats in corporate donations
Since 2010 public companies and trade associations together gave about $1 billion out of $2.5 billion raised by those assisting governors’, attorneys generals’ , and legislative races according-to CPA. Historically speaking ,62%of all such corporate funds go towards Republican efforts while only38%go towards Democrats.
For current election cycle -the amount donated by corporations accounted-for39%of all fundraising by Raga while making up33%for RGA ; totaling63million across both organizations so far. In contrast -corporate funding given towards Democrat equivalents totaled54million accounting-about one-third overall fundraising done
Overall totals received so-far show increased funding directed toward both GOP & Dem entities already surpassing previous years midterm totals seen up until now : where-Republicans increased through33%- while Democrats received22%boost compared last time around.
This aligns well-with growing interest seen among corporates directing financial support primarily toward Super Pac’s focused-on congressional campaigns as year-to-date totals indicate500million spent representing nearly third-part all political contributions made since2010 says Public Citizen.
Hanna points out how routine it has become nowadays wherein firms contribute funds towards such political bodies despite changes happening over past decade regarding influence held over policies created.
“These groups have been around for quite some time & were electing individuals who weren’t as politically charged nor partisan back then,” Hanna noted ,“The function performed through AG offices has shifted dramatically within shorter spans recently observed too. There exists differing impacts caused due-to reflexive donations done simply seeking access rather than fully analyzing final outcomes intended”.
