Oil, Gas Ties Power House Speaker Candidate Scalise Fundraising

Oct. 11, 2023, 5:52 PM UTC

House speaker candidate Steve Scalise represents a Louisiana district where energy is a major economic driver. That’s helped him forge longstanding close ties to the oil and gas industry, with Koch Industries Inc. and Valero Energy Corp. among his recent top political action committee donors.

Four of the five largest PAC donors to the Louisiana Republican’s joint fundraising committee, known as the Scalise Leadership Fund, hail from the sector and already this year have cut big checks to the sitting House majority leader, Federal Election Commission records show.

The political fundraising of Scalise and his main competitor, House Judiciary Chairman Jim Jordan (R-Ohio), has grabbed a new spotlight because filling the party’s coffers is a major part of the job for modern-day Speakers. House Republicans voted behind closed doors Wednesday to nominate Scalise to be the next speaker, giving him more votes than Jordan.

Republicans Nominate Steve Scalise to Be Next US House Speaker

“Steve is the hardest worker I know, a prolific fundraiser, and he has shown courage and grace in the face of profound adversity,” said Rep. Ann Wagner (R-Mo.), in a statement endorsing Scalise for the speaker job. “He has the experience and the conservative values necessary to lead us through this crisis and into an even stronger Republican majority in 2024.”

Oil and gas industry representatives view Scalise, who formerly served on the House Energy and Commerce Committee, as an ally, though they’re not making a public endorsement in the race. A Scalise spokesperson and a fundraising consultant didn’t respond to a request for comment.

“Being able to know you have the ear of the speaker of the House is a powerful thing and one that can be reinforced with campaign contributions,” said Michael Beckel, research director at Issue One, a group that advocates for an overhaul of campaign finance laws. The oil and gas industry is “a very important player in Louisiana politics,” Beckel noted.

Former Scalise congressional aides represent oil and gas interests. Kelley Hudak, who managed business and outside coalitions efforts for Scalise’s whip team, joined the industry’s main lobbying group, American Petroleum Institute, earlier this year.

The group’s outside lobbyists include former close Scalise aides Matt Bravo and Martin Reiser of the S-3 Group.

API donated $5,000 to Scalise’s campaign earlier this year; it hadn’t disclosed any donations to Jordan’s campaign as of June 30, according to FEC records. API didn’t respond to a request for comment.

Scalise’s district includes suburbs of New Orleans and stretches down to the Gulf Coast. Venture Global is building a $13 billion LNG terminal in Plaquemines Parish, which is expected to export annually as many as 13 million metric tons of liquified natural gas and be one of the largest facilities of its kind in the US. In Congress, Scalise has supported more energy production. “Congressman Scalise supports robust offshore energy production in the Gulf of Mexico,” his congressional website says.

Industry Connections

Scalise’s industry ties aren’t limited to the energy sector.

Chris Hodgson, a former Scalise aide who is now a principal with Cornerstone Government Affairs, represents ExxonMobil Corp. as well as Raytheon Technologies, among others, according to recent lobbying disclosures. TJ Tatum, another former Scalise aide, also works at the consulting firm Cornerstone Government Affairs.

Bravo and Reiser’s clients also include Juul Labs and JP Morgan Chase & Co. as well as Koch, lobbying disclosures show.

Former Scalise aide Daniel Sadlosky is an in-house lobbyist for RTX Corp. according to lobbying disclosures. Another ex-Scalise aide John Seale is a registered in-house lobbyist for helicopter company the Bristow Group Inc. And Geoffrey Green, a former Scalise legislative director, is executive vice president of government and external affairs for Bollinger Shipyards in Lockport, La., according to congressional lobbying disclosures and his LinkedIn profile.

Other lobbyists who haven’t come from his staff but have built ties to Scalise over the years, including through fundraising and informal counsel, include Susan Hirschmann, CEO of lobbying firm Williams and Jensen; Michael Herson, president and CEO of American Defense International, a K Street firm.

Koch lobbyist Brian Henneberry donated $30,000 to the Scalise Leadership Fund earlier this year, and other lobbyists, including tax lobbyist Ken Kies, made sizable contributions to the fund, which benefits Scalise’s campaign, his leadership PAC and the National Republican Congressional Committee.

Jordan’s fundraising, too, has taken on new interest. A previously planned Oct. 24 dinner event became a hot ticket on K Street. Hosts of that event include Koch’s PAC and a lobbyist for the National Football League.

To contact the reporter on this story: Kate Ackley at kackley@bloombergindustry.com

To contact the editors responsible for this story: Bennett Roth at broth@bgov.com; Robin Meszoly at rmeszoly@bgov.com

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