Club for Growth
The Club for Growth is a 501(c)(4)[1] conservative[2] organization active in the United States, with an agenda focused on tax cuts and other economic policy issues.[3][4]
Established
1999
20-4681603
2001 L St NW Ste 600
Washington, DC 20036-4967
Club for Growth's largest funders are billionaires Jeff Yass and Richard Uihlein.[4] The club has two political arms: Club for Growth PAC, a traditional political action committee, and Club for Growth Action, an independent-expenditure only committee or super-PAC.[5]
According to its website, the Club for Growth's policy goals include cutting income tax rates, repealing the estate tax, supporting limited government and a balanced budget amendment, entitlement reform (including Social Security reform, Medicare and Medicaid reform), tort reform, school choice, and deregulation.[6]
In 2003 through 2004, the Club for Growth was the largest single funder for Republican House and Senate candidates, outside of the Republican Party itself.[7]
The group has opposed government action to curb greenhouse gas emissions and called on President Trump to exit the Paris Climate Agreement.[8]
The Club for Growth PAC endorses and raises money for candidates who meet its standards for fiscal conservatism. According to Politico, "The Club for Growth is the pre-eminent institution promoting Republican adherence to a free-market, free-trade, anti-regulation agenda."[9]
The Guardian described the group as "one of the biggest backers" of Republicans who voted to overturn the results of the 2020 United States presidential election, having spent around $20 million on their campaigns in 2018 and 2020.[4]
History[edit]
The Club for Growth was founded in 1999 by Stephen Moore, Thomas L. Rhodes, and Richard Gilder.[10] Moore served as the first president of the Club from 1999 until December 2004, when board members voted to remove Moore as president.[11] In 2003 through 2004, the Club for Growth was the largest single fundraiser for Republican House and Senate candidates, outside of the Republican Party itself, raising nearly $22 million.[12]
Future Pennsylvania United States Senator Pat Toomey served as president from 2005 until his resignation in April 2009. Former Indiana Congressman Chris Chocola succeeded Toomey. Chocola served as president through December 2014. He remains a member of the Club's board. Former Indiana Congressman David McIntosh was named president in January 2015.[13]
On September 19, 2005, the Federal Election Commission (FEC) filed suit against the Club for Growth alleging violations of the Federal Election Campaign Act for failing to register as a political action committee in the 2000, 2002, and 2004 congressional elections.[14] In September 2007, the Citizens Club for Growth (the Club for Growth changed its name) and the FEC agreed to settle the lawsuit.[15] According to their joint filing, Citizens Club for Growth said "that it operated under the good faith belief that it had not triggered political committee status ... [and] [f]or the purposes of this settlement, and in order to avoid protracted litigation costs, without admitting or denying each specific basis for the [FEC's] conclusions," Citizens Club for Growth no longer contested the alleged violations and agreed to pay $350,000 in civil penalties.[16]
According to the Associated Press, the settlement was one of "a series of actions by the FEC to penalize independent political groups that spent money to influence elections but did not register as political committees. The groups, called 527 organizations for the section of the IRS code ... , played a significant role in the 2004 congressional and presidential elections by raising unlimited amounts of money from labor groups, corporations and wealthy individuals."[15] On June 25, 2012, U.S. District Court Judge Robert L. Wilkins issued an order stating that the FEC "is FORMALLY REPRIMANDED as a sanction for violating explicitly clear orders" (emphasis in original text) regarding confidentiality in the 2007 settlement agreement."[17]
In 2010, the Club's political arms spent about $8.6 million directly on candidates and bundled another $6 million from Club members, directing those funds to candidates.[18] In 2012, according to OpenSecrets, Club members donated at least $4 million, and the Club's political arms spent nearly $18 million on elections.[19]
In 2013, the Club for Growth super PAC's donors included Peter Thiel, an early backer of Facebook and a co-founder of PayPal, who gave $2 million; Virginia James ($1.2 million); John W. Childs ($1.1 million), chairman and founder of the Boston-based private equity firm J.W. Childs Associates; Robert D. Arnott ($750,000), the chairman and chief executive of California-based Research Affiliates; Robert Mercer, the co-chief executive of Renaissance Technologies and part-owner of Cambridge Analytica, gave $600,000; and hedge fund manager Paul Singer gave $100,000.[20]
The Club for Growth's super PAC, which historically has been most active in Republican primary elections, spent more in general elections in the 2018 cycle than it ever had before. This trend was expected to continue into 2020.[21] Club for Growth president David McIntosh described the Club's evolution, saying "We want to be the political arm of the conservative movement—inside the Republican Party."[22]
In June 2020, The Hill wrote that the Club was "flexing its financial muscle this year, doling out millions of dollars to conservative congressional candidates and outspending most other outside groups as it looks to help the GOP keep control of the Senate and improve Republican chances in the House." The Club for Growth raised $55 million in 2020, "making 2020 its most lucrative cycle yet." The Club, which said it planned to spend at least $35 million in the 2020 election cycle, outspent most other groups not affiliated with presidential candidates.[23] According to a Guardian analysis, the organization was one of the biggest backers of the Republican lawmakers who tried to overturn the 2020 US election results. It spent $20m to support its campaigns in 2018 and 2020. One of the largest donors was Jeffrey Yass who in 2020 donated $20.7m to the Club.[24]
Mission[edit]
Founder Stephen Moore has said, "We want to be seen as the tax cut enforcer in the [Republican] party."[25] Unlike many other political action committees, the Club for Growth's PAC regularly participates in funding candidates for primary elections.[18] The Club focuses more on open seats than on challenging sitting Republicans, but it has helped to unseat a number of incumbent Republicans.[11][26] The Club for Growth has established a vetting process for potential candidates that involves one or more interviews, research on the race and the candidate's record, and a poll conducted to establish whether the candidate has a viable chance for victory.[27] Each election cycle, the Club's PAC endorses candidates and encourages donors to support the endorsed candidates.[11] Promoting a more conservative agenda, the Club is known for targeting "establishment" Republican candidates.[18]
Issue advocacy[edit]
2003[edit]
In 2003, the original Club for Growth strongly opposed the Medicare prescription drug benefit proposal.[28] The Club for Growth strongly supported the Bush tax cuts of 2003 and ran television ads against two Republicans who voiced opposition to the tax cuts. According to The New York Times, "Last spring, [Club for Growth president Steve] Moore attacked two Republican Senators who were resisting the latest tax cut: George Voinovich of Ohio and Olympia Snowe of Maine. He ran ads in each of their states in which he compared them with the French president, Jacques Chirac. Karl Rove, President Bush's political advisor, stated that the ads were "stupid" and "counterproductive".[29]
2005[edit]
In 2005, Pat Toomey became president and the Club for Growth created a congressional scorecard. The Club's first key vote alert was an amendment sponsored by a Democrat. Representative Earl Blumenauer offered an amendment to an agricultural appropriations bill that would have reduced the sugar program by 6 percent. The Club for Growth supported the amendment, which failed, 146–280.[30][31]
The Club fought to support the Dominican Republic–Central America Free Trade Agreement in 2005, running print advertisements in local Beltway publications in the Washington, DC area. According to Roll Call, "Former Rep. Pat Toomey (R-Pa.), president of the Club for Growth, a CAFTA supporter, said his group continued running advertisements before the Congressional vote."[32]
The Club opposed the 2005 highway bill.[33] President Bush threatened to veto the bill but did sign it. The Christian Science Monitor quoted David Keating saying, "For fiscal conservatives, it's frustrating to watch ... He's beginning to lose all credibility with these veto threats."[34] According to The Washington Post, "The Club for Growth, a conservative group that funds like-minded candidates for Congress, has turned the highway legislation into a bumper sticker for the GOP's fiscal failings.[35]
Keating said to the Chicago Sun-Times, "It is a pork-laden bill."[36] The Christian Science Monitor reported Toomey saying,
Club for Growth PAC[edit]
2004[edit]
In 2004, the Club for Growth's PAC endorsed and supported U.S. Representative Pat Toomey, who challenged incumbent Senator Arlen Specter in the Republican primary in Pennsylvania. The PAC was reported to have collected contributions totaling over $934,000 for Toomey. It also spent $1 million on its own independent television advertising campaign on Toomey's behalf.[73] Specter, who had the support of President Bush, the RNC, and Sen. Rick Santorum, defeated Toomey by a narrow margin of 51–49%. Afterward Toomey accepted the position as President of the Club for Growth, where he served until April 2009.
2006[edit]
The original Club's PAC supported the electoral bids of freshmen U.S. Congressman Adrian Smith (R-NE), Doug Lamborn[74] (R-CO), Bill Sali[75] (R-ID), and Tim Walberg[76] (R-MI), who all were elected. Congressional Quarterly wrote that Smith's views did not differ greatly from those of his primary election rivals, but the endorsement of the Club for Growth's PAC "gave him the imprimatur of the most fiscally conservative candidate, and it helped boost him to the top of the campaign fundraising competition."[77]
In the 2006 primaries, the Club's PAC recommended to its donors that they support incumbent Democratic Congressman Henry Cuellar (D-TX), the first time the Club's PAC recommended support for a Democrat. Cuellar won the primary race against former Congressman Ciro Rodriguez.[11] The Club's PAC endorsed four candidates for U.S. Senate, including Mike Bouchard in Michigan, Mike McGavick in Washington, Michael Steele in Maryland, and Stephen Laffey in Rhode Island, who did not win.[11]
Support by the Club's PAC was not a guarantee of success: its candidate Sharron Angle was defeated in the Republican primary in Nevada's 2nd congressional district, although it spent more than $1 million on her campaign.[78] The Club's PAC also supported primary campaigns of Phil Krinkie in Minnesota and Kevin Calvey in Oklahoma, who lost, as did incumbent congressman Chris Chocola in Indiana,[18] John Gard in Wisconsin, and Rick O'Donnell in Colorado.[79]
The Club's PAC supported the reelection of Steve Chabot in Ohio.
