GOP fund-raising may take a hit due to DeLay

Clinton, Bush had similar success
Since 1994, DeLay has been a fund-raiser with few peers. Former President Clinton and President Bush are the other top draws. Through DeLay’s campaign account, his political action committee — Americans for a Republican Majority — and other entities, the Texas Republican has raised tens of millions and divvied up the dollars to numerous GOP candidates.

His campaign account has collected more than $12 million, largely from the finance, insurance and energy sectors, and dispensed nearly that much. DeLay’s various committees and organizations have raised millions more for the GOP, with the amount climbing steadily as the Republicans tightened their grip on Congress and captured the White House in 2000.

But this is just one slice of DeLay’s fund-raising prowess.

He pressured Washington’s lobbying firms to hire Republicans — known as the “K Street Project” — and keep the money flowing to the GOP at the Democrats’ expense. He set fund-raising goals for rank-and-file House Republicans.

The result was that by the last election industries across the board — agriculture, real estate, health care, finance — favored Republicans over Democrats by 2-to-1, even 3-to-1 margins in campaign dollars, according to the nonpartisan Political MoneyLine. The lone exception was labor.

With the 2006 midterm elections looming, the party is struggling with Bush’s standing, diminishing public confidence in the economy, a growing U.S. death toll in Iraq and Hurricane Katrina’s toll on Republican political capital.

Investigations plaguing the party
In the Senate, Majority Leader Bill Frist, R-Tenn., faces a federal investigation into a stock sale. At the White House, a federal prosecutor is looking at the highest echelon in the leak of a CIA operative’s name. In the House, DeLay’s departure has touched off a battle in the GOP ranks for the leadership posts.

Coelho, who resigned in 1989 amid a junk bond scandal, has seen the reaction from donors to political woes.

“Am I saying they’re going to be kicked out next year? No, I’m not.” However, he said, “It is the perfect storm right now. ... And people on Wall Street and people in the business community sit back and say, ‘Wait a minute here.”’

Grover Norquist, president of Americans for Tax Reform, who works closely with the House Republican leadership, argued that DeLay and former House Speaker Newt Gingrich, R-Ga., “created a Republican cause and majority in the House that is self-sustaining.”

And if DeLay survives the charge, watch out. “Tom DeLay is a Christian and may turn the other cheek, but I wouldn’t bet on it.”

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