K Street bets on Reid

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K Street has placed a big bet in the Nevada Senate race, putting a bundle of cash behind Harry Reid.

During just a few weeks, the Senate majority leader racked up $56,000 in individual contributions from registered lobbyists, according to an analysis of his latest campaign fundraising records, which cover the final days before the Nevada primary through the end of June.

Republican Sharron Angle’s haul: just $500 from a single lobbyist in Washington.

Indeed, Federal Election Commission records show that Reid is blowing away Angle in lobbyist money: Since the start of 2009, lobbyists and political action committees have bundled an additional $519,000 to Reid, while Angle has yet to report any similar donations.

Through the first quarter of 2010, Reid has raised nearly $640,000 from the lobbying industry, making it the fourth biggest source of funds for his campaign coffers, according to the Center for Responsive Politics.

The money has come from lobbying firms representing virtually all sectors of the economy — ranging from telecommunications firms to chemical makers to major retailers such as the Home Depot.

For Angle, who has drawn vast fundraising support from conservative politicians and ideological groups, the lobbying industry doesn’t even rank among the top 20 donors. Much of her money has come from retirees or donors living in California and Texas.

While some Republican donors on K Street are still unsure what to make of Angle’s shaky candidacy, others are motivated by fear that a less-business-friendly Democratic majority leader would replace Reid were he to lose. And others are just plain scared that they might face Reid’s wrath should he pull off a victory in November.

“I think they’re fearful of crossing him,” said Sen. John Cornyn (R-Texas), chairman of the National Republican Senatorial Committee. “It wouldn’t be looked upon with favor, I wouldn’t think. I think there has to be some concern that there would be retribution.”

“Harry Reid has a long memory, and you don’t want to get on the wrong side of him,” said a Republican lobbyist who has given to other GOP Senate candidates but not to Angle.

Angle has made only one trip to Washington since winning the GOP nomination on June 8, and she did not meet with lobbyists or PAC officials during her brief stay.

The situation could certainly change after Labor Day, when the race will enter its final stretch. If the contest is still close, then both national parties are likely to pour money into Nevada — and GOP-aligned firms on K Street might yet decide to put their money behind Angle.

Reid campaign officials say that the senator has raised $3 million from Nevada donors, a record for a federal race in the state. Plus, he has relied heavily on donations from Nevada’s gaming industry.

Reid allies contend that donors are showing concern about Angle’s erratic campaign performance and her unproven record on business.

“I think it’s a lot less that they are scared to cross him and a lot more that Harry Reid is open to all views,” said New Jersey Sen. Robert Menendez, chairman of the Democratic Senatorial Campaign Committee. “I think they get a sense that they got a majority leader they can work with versus his opponent, who is someone who is too extreme for the business community’s interests.”

To many on K Street, Angle is an unknown quantity — particularly because she’s seen as a hard-line populist conservative with a less than pro-business background.

But it’s also clear that Reid has been able to lean on the Washington lobbying community for campaign donations — something that he’s been able to do repeatedly since he was first elected to the House in 1982.

“I think it is more geographic and cultural than anything,” a GOP lobbyist said. “I think if you looked at his [lobbyist] contributions, all of those people are domiciled within 10 miles of the Capitol dome.”

The K Street cash is a double-edged sword for Reid in what is shaping up to be a tough year for incumbents nationwide.

Even though he’ll be able to attract staggering sums of money to buy campaign ads and build a get-out-the-vote network, Reid’s ties to K Street could also become a liability at a time when voters see Washington as a place where politicians have grown too cozy with lobbyists.

“Harry Reid bought into Washington, and Washington bought him,” said Jerry Stacy, spokesman for Angle’s campaign.

Cornyn said that Angle has enjoyed fundraising success — narrowly outraising Reid in the most recent quarter — by focusing on a network of small donors across the country.

Of the $2.22 million Angle raised during the May 20-June 30 time frame, $1.27 million, or 56 percent, came in donations of $200 or less. During the same period, Reid raised $1.1 million. Of that total, nearly $880,000 came in the form of “itemized contributions,” for which donors must provide their names, employers and occupations.

“If you give to [Reid] or any other member, you want them to know that you gave,” a top Democratic lobbyist said.

During the most recent reporting period, Angle received only one corporate PAC contribution — $1,000 from the Bank of Cushing PAC, a committee representing an Oklahoma bank that has given to other GOP candidates. But Reid’s PAC contributions totaled more than $216,000 during that time period, including donations from interests ranging from the alcohol industry to Yahoo Inc.

Angle also received $303,500 in donations from the Club for Growth, a conservative group that funnels money to candidates from donors. The leadership PAC of Sen. Jim DeMint (R-S.C.), the Senate Conservatives Fund, has spent $162,000 on independent expenditures for Angle. Angle has also received $2,500 from Sarah PAC, formed by former Republican vice presidential candidate Sarah Palin.

Sen. John Ensign (R-Nev.), who is under federal investigation over the fallout of his extramarital affair with an aide, gave Angle $5,000 out of his leadership PAC; and Cornyn and Senate Minority Leader Mitch McConnell (R-Ky.) each kicked in $5,000 from their PACs.

Some Republicans would like to compare the Angle-Reid race to the 2004 battle in South Dakota between Republican challenger John Thune and former Senate Democratic leader Tom Daschle. In that race, donors were often worried about crossing Daschle for fear of retribution.

But there are also key differences. Thune, who had already served three terms in the House, was far better known to K Street than Angle. And Senate GOP leaders, including then-Majority Leader Bill Frist (R-Tenn.), campaigned in South Dakota on Thune’s behalf. McConnell has no plans to campaign for Angle.

This time around, some Republican lobbyists say they are far more worried about what Reid’s potential successors as majority leader, Sens. Chuck Schumer (D-N.Y.) or Dick Durbin (D-Ill.), would mean for their bottom line should Reid lose on Nov. 2.

“I think there are people around here who would rather see Reid [as majority leader] than Schumer or Durbin,” said a former Republican leadership aide turned lobbyist. “Better the devil you know than the devil you don’t know.”

Emily Schultheis and Giovanni Russonello contributed to this report.