House Speaker Dennis Hastert and Majority Leader Dick Armey
Two top House Republicans raise $1 million apiece
JONATHAN D. SALANT, AP26oct00

WASHINGTON -- The two top House Republicans each raised $1 million during the past three months to provide last-minute help for GOP congressional campaigns.

House Speaker Dennis Hastert and Majority Leader Dick Armey took in contributions as large as $100,000 -- 10 times what a political action committee may give to a candidate's campaign.

The donations went to the campaign committees of the two lawmakers or their leadership political action committees. Both leaders also use their leadership PACs to raise unregulated soft money contributions, which went undisclosed until Congress earlier this year passed legislation requiring that such donations be reported to the Internal Revenue Service.

Overall, Armey raised $1.2 million and Hastert raised $1.1 million between July 1 and Sept. 30, according to records filed with the IRS and the Federal Election Commission.

Hastert reported raising $549,000 in soft money and Armey reported raising $581,473. Both lawmakers spent most of that money on activities at last summer's Republican National Convention in Philadelphia.

Spokesmen for both Hastert, R-Ill., and Armey, R-Texas, did not return phone calls seeking comment.

The soft money accounts offer special interests another way to curry favor with powerful lawmakers, said Larry Makinson, director of the Center for Responsive Politics, a nonpartisan research group that studies campaign finance.

``We have another back door. Where there's a back door, money rushes in,'' Makinson said.

Caterpillar, the maker of construction equipment, was the biggest donor, giving $100,000 to Hastert's PAC. Associated Builders and Contractors, the construction industry's trade group, gave $90,000. The builders' group lobbied for an end to the estate tax, a bill that passed the Republican-controlled Congress but was vetoed by President Clinton.

Hastert also received $50,000 from AT&T, which has launched a last-minute blitz to persuade lawmakers to change federal rules that limit the number of subscribers one cable TV company may have. AT&T also gave $10,000 to Armey.

Armey took in $26,000 from United Distillers and Vintners. The alcohol industry recently lost an effort to stop Congress from setting a nationwide standard for drunk driving.

And he received $25,000 each from Verizon and SBC Communications, two of the remaining Bell regional phone companies. They are lobbying Congress in the closing days of the session for legislation freeing them from having to pay local phone rivals to complete Internet dial-up calls made by Bell customers.

``This is an example of what would have been hidden had Congress not changed the law to require disclosure,'' Makinson said. ``Had it been hidden, the dollar amounts would have been even higher. At least we can track who's walking in and out the door.''

Several other interest groups and lawmakers raising soft money also recently filed disclosure reports with the IRS. Among the filings:

-- Senate Majority Leader Trent Lott's PAC raised $62,000 in soft money, including $25,000 from Lodwrick Cook, co-chairman of Global Crossing, the telecommunications company. Senate Minority Leader Tom Daschle raised $84,500, including $10,000 from the Association of Trial Lawyers of America.

-- Rep. Martin Frost of Texas, the third-ranking Democrat in the House, raised $256,800, including $2,500 from Philip Morris and $25,000 from Texas trial lawyer Cory Patterson.

-- The Republican Majority Issues Committee, a group linked to House Majority Whip Tom DeLay, R-Texas, raised $482,240. Big givers include Richard DeVos of Amway, who gave $150,000, and Kenneth Lay of Enron, who contributed $50,000. Over the years, Enron and its employees have been the biggest donors to the gubernatorial and presidential campaigns of George W. Bush. Another Enron executive, Joseph Sutton, gave $25,000.

-- Citizens for Better Medicare, which is funded by the pharmaceutical industry, reported spending $8.5 million, all but $200,000 on television commercials opposing Democratic proposals to create a prescription drug benefit for Medicare recipients. The money went to the firm of Alex Castellanos, who also handles media for Bush and the Republican National Committee. Bush and the GOP congressional leadership oppose the Democratic plan.