Defense industry's lobbying expenditures jump 7 percent in 2010

Defense firms poured millions of dollars more into lobbying during the first two quarters of 2010, increasing expenditures by about 7 percent over what they spent in the first half of last year, an analysis by the Center for Responsive Politics shows.

The boost in lobbying by the defense sector coincides with Pentagon warnings of fiscal belt tightening and directives to industry officials, accustomed to historic increases in the military's budget, to keep costs of the hardware and services they provide the government under control.

The six-month rise in lobbying expenditures became apparent as the nonpartisan center reviewed disclosure reports filed late last month to the House and Senate.

Overall, defense firms spent $4.7 million, or 7.2 percent, more on lobbying Congress between January and June than they did during the same period last year. Between April and June, only the financial services and energy industries, which have been the focus of major legislation on Capitol Hill, posted bigger percentage increases than defense compared to last year's second quarter lobbying spending.

"I think as long as this administration is in power you'll continue to see people worried about defense spending," said one defense lobbyist. The result, the lobbyist said, is defense companies placing more emphasis on lobbying to pressure Congress to keep their favored programs alive.

But another defense lobbyist said he believed concerns over long-term budget projections would be more likely to translate into increased PAC contributions from industry, which have also increased so far this year over the 2008 election cycle.

For instance, Lockheed Martin Corp.'s PAC has donated $2.35 million during the 2010 cycle, or $128,000 more than it gave during the entire 2008 cycle, according to the center's analysis of campaign finance reports filed in July.

Boeing Co.'s PAC, meanwhile, has contributed $2.18 million in this cycle, almost $300,000 more than any previous cycle.

Defense companies "obviously are aware that the overall pressures on the budget are going to become much more intense and they're positioning for that, so they want to make sure they are building a bigger base of relationships on Capitol Hill with members," the second lobbyist said.

He attributed the rise in lobbying expenditures to uncertainty over the legislative calendar -- particularly the prospects for completing the defense authorization bill this year and whether the fiscal 2011 Defense Appropriations bill will be a stand-alone measure or part of an omnibus.

On Monday, Senate Majority Leader Harry Reid, D-Nev., said he wants to take up the defense authorization bill once the chamber reconvenes in September. But industry officials who track the bill are worried over whether there will be enough time to debate the measure before senators leave town for the mid-term elections.

On the fiscal 2011 spending bill, the Senate Defense Appropriations Subcommittee had tentatively planned to mark up the legislation this week, sources said. But the subcommittee now is not expected to hold a markup until September.

"My sense is that [lobbying expenditures] increase every year that you're going through a difficult legislative cycle," the second lobbyist said.

Looking at specific companies, Boeing increased its first and second quarter lobbying expenditures by $2 million -- spending a total of $9 million -- over the first half of 2009. Northrop Grumman Corp.'s expenditures jumped from $6.1 million during the first half of 2009 to $9.1 million between January and June.

But not all companies posted big increases. Lockheed Martin, for instance, actually cut its lobbying expenditures during the first two quarters of 2010 by $545,477 over the same period last year.