By Siobhan Hughes And Brody Mullins
WASHINGTON--Wall Street firms, Las Vegas casinos, defense
contractors and other major U.S. corporations won special
provisions tucked inside a 1,600-page spending bill being
considered by Congress.
The bill, which funds more than $1 trillion in government
operations through Sept. 30, sparked a lobbying frenzy from
individual companies, industries and other special interests.
Winners include banks, such as Citigroup Inc. and J.P. Morgan
Chase & Co., which scored a provision rolling back new
derivatives regulations; hotels, rental car firms and Las Vegas
casinos, which hit the jackpot with a provision that renews a U.S.
marketing program to entice foreigners to vacation in the U.S.; and
a tiny uranium enrichment firm that won $97 million in federal
funds.
Sen. Susan Collins (R., Maine) secured a provision that would
suspend enforcement of rules designed to prevent truck-driver
fatigue. Sen. Dick Durbin (D., Ill.), the No. 2 Senate Democrat,
touted the inclusion of $120 million he hopes will double capacity
on Chicago's most-used subway lines. Rep. Jack Kingston (R.,
Georgia) secured language designed to ensure that a project to
expand the Savannah Harbor would go forward.
Many of the provisions were added to the spending bill by
congressional leaders, as they have done in years past, in an
effort to secure as much possible support, especially given
Congress's tortured recent history in passing spending
legislation.
This time, however, some of the extraneous provisions are
drawing fire from both Democrats and Republicans alike.
Conservatives say the provisions are freebies to special interests.
Democrats, including House Minority Leader Nancy Pelosi (D.,
Calif.), contend the derivatives measure is a giveaway to Wall
Street banks.
House leaders hope to vote on the legislation Thursday. The
Senate is looking to vote on the spending package later this
week.
For Washington lobbyists, the bill represents one of the few
chances to influence legislation, "so it becomes a feeding frenzy
to make sure your client's provision is inserted in the only train
leaving the Capitol Hill station," says Steve Ellis, a vice
president at Taxpayers for Common Sense, a nonpartisan organization
that tracks spending provisions.
Defense contractors were big winners, scoring a total of $94
billion for new equipment and upgrades, and accounting for about 9%
of the total bill. Lockheed Martin Corp. won a victory when
appropriators agreed to fund 38 F-35 joint-strike fighters. Boeing
Co. benefited from a decision to fund 15 Growler aircraft that also
helped keep open a factory in St. Louis.
One late addition causing tension is a provision to scale back
derivatives regulation in the 2010 Dodd-Frank financial-services
law. Under the law, big firms are required to spin off certain
derivatives trading into affiliates that don't enjoy access to
federal safety nets.
Banks including Citigroup and J.P. Morgan have been working for
years to eliminate or roll back the provision, joined by regional
banks such as PNC Financial Services Group Inc. and SunTrust Banks
Inc.
At the behest of financial services lobbyists, House lawmakers
added language to the bill that would allow banks to keep almost
all the banished swaps. That has drawn the ire of some
Democrats.
Energy lobbyists scored several wins in the legislation. Western
energy firms added a measure that would block the Interior
Department from listing the sage grouse, a chicken-like bird whose
habitat spans several Western states, as an endangered species. The
coal lobby won a provision that would hinder the White House's
efforts to limit U.S. investments in overseas coal-fired power
plants.
Hotels, rental cars companies, theme parks and casinos supported
a provision to renew an expiring program promoting tourism to the
U.S. The marketing program, called Brand USA, is funded jointly
from fees charged to international travelers coming to the country
and matching funds from the U.S. tourism industry.
The legislation had bipartisan backing in the House and Senate,
and passed the House this summer, but didn't come to a Senate
vote.
The U.S. Travel Association, which represents Marriott
International, Avis Budget Group, Disney Destinations LLC and
others, says the average foreigner spends $5,400 during U.S.
travel.
Victoria McGrane and Amy Harder contributed to this article.
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