Why corporate America can’t quit the 'sedition' Republicans

Toyota (TM) has caught flak for making political donations to 38 members of the “sedition caucus,” as critics refer to the 147 Republican members of Congress who voted to overturn the 2020 presidential election results. But Toyota is probably not the most generous funder of these renegade Republicans. It may simply be the most overt.

Since the Jan. 6 riots at the U.S. Capitol, Toyota has made donations ranging from $1,000 to $5,000 to 38 Republican representatives who are among the 147 Congressional election deniers, for a total of $56,000, according to Citizens for Responsibility and Ethics in Washington, which tabulated the data. Most of those members represent districts where Toyota has plants or other facilities.

The controversy over those donations led Toyota, on July 8, to say it will no longer fund any member of Congress who opposed the certification of the 2020 election. But big money is flowing to the GOP anyway, just not directly to the most controversial members. Savvy corporate donors give money to catch-all committees that are less controversial, such as the National Republican Congressional Committee and the National Republican Senatorial Committee, which in turn funnel it to party members. Companies also fund political action committees at industry groups such as the U.S. Chamber of Commerce, which can then donate to controversial politicians without the fingerprints of any individual corporate donor.

“Companies have various ways to influence members of Congress without having their name on it,” says Robert Maguire, research director for CREW. “It’s somewhat surprising Toyota is the one people have latched onto. Other companies have given far more than Toyota to party committees.”

Lobbyists who want face time with lawmakers and their staff members typically must pony up to attend fundraisers, which get them in the door. Even when in the minority, members of either party can still tuck legislation favoring contributors into bills. Republicans also have solid odds of retaking control of the House in the 2022 midterms and smaller but still plausible odds of retaking the Senate. That makes it risky for any corporate donor to shun the party. Many companies try to give more or less equally to both sides to avoid the impression they favor one party, should the other take power.

Boeing (BA), for instance, hasn’t given money directly to any of the 147 scarlet Republicans. But it has given $105,000 to each of the two Republican congressional committees, the NRCC and the NRSC. Some of that money could very well make it to the party’s most controversial members. Boeing has also given the same amounts to the corresponding Democratic committees in the House and Senate.

Rioters stand on stairs to a balcony on the West Front of the U.S. Capitol on Jan. 6, 2021, in Washington. (AP Photo/Jose Luis Magana)
Rioters stand on stairs to a balcony on the West Front of the U.S. Capitol on Jan. 6, 2021, in Washington. (AP Photo/Jose Luis Magana) (ASSOCIATED PRESS)

Cigna (CI) has given $12,500 to nine of the 147 tarred Republicans—but more, $30,000, to the two Republican committees. Walmart (WMT) has given nothing to the tarnished Republicans but $60,00 to the two GOP committees. Regional bank PNC has given nothing to the scarlet Republicans but $55,000 to the two GOP committees. Like Boeing, Walmart and Cigna have given as much to Democratic committees as to Republican ones. Federal records show that PNC (PNC) has given some money to Democrats, but not as much as it has to Republicans, so far.

Boeing, Walmart, PNC and Cigna all vowed to halt or pause donations to the tarred Republicans after the Jan. 6 riots. Boeing, Walmart and PNC have stuck to their pledges, even while giving to broader Republican groups. Cigna now says it withdrew support for any member of Congress who encouraged or supported violence, but not necessarily for those who objected to certifying the election.

Donation records for the first half of 2021 won’t be finalized until the end of July, and many companies that make political donations haven’t reported any of their contributions so far. So many more revelation are coming. Even when those records are complete, it will still be hard to tell where some corporate donations ultimately end up.

General Motors (GM), for instance, is one of the companies that pledged not to support any of the 147 GOP election deniers. And so far, it hasn’t, directly. But GM has given $15,000 to the NRSC. It has also given $10,000 to a fundraising committee run by House Minority Leader Kevin McCarthy and $25,000 to a similar PAC run by Steve Scalise, McCarthy’s No. 2. Both Republicans voted against certifying the election, and the committees they run may ultimately fund other tarred Republicans. GM funds dozens of candidates and committees, including Democratic ones. But its indirect support for GOP election deniers may rival Toyota’s direct contributions—without GM ever having to admit a mea culpa.

Rick Newman is the author of four books, including "Rebounders: How Winners Pivot from Setback to Success.” Follow him on Twitter: @rickjnewman. You can also send confidential tips, and click here to get Rick’s stories by email.

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