August 11, 2022

Citigroup, JPMorgan to Resume Campaign Donations

WASHINGTON—Two major U.S. banks said they will resume campaign donations from their political-action committee, but split on the question about whether they would donate money to any of the 147 Republican lawmakers who voted to challenge the results of the 2020 election.

In a memo to employees Friday,

Citigroup Inc.

said it wouldn’t ban donations to those Republicans, but would only give money to candidates who supported a set of principles, such as protecting democratic institutions.

JPMorgan

Chase & Co. told employees it wouldn’t give money in the 2021-22 election to the Republicans who challenged the election of President

Joe Biden.

The announcements make Citigroup and JPMorgan two of the first large U.S. corporations to announce that they will resume political donations since halting contributions after the Jan. 6 assault on the U.S. Capitol by a pro-Trump mob.

Citigroup and JPMorgan were among the first companies to say they would halt donations after the Jan. 6 riot. Their decisions to resume political giving could prompt others to follow suit.

Citigroup told employees that it would consider donations to those who meet five standards, including how relevant they are to Citi’s business, their “character and integrity” and their commitment to bipartisanship.

U.S. corporate leaders have found themselves increasingly at odds with both the Democratic and Republican parties. WSJ’s Gerald F. Seib explains how they find themselves in an uncomfortable position. Photo illustration: Laura Kammermann (Video from 4/12/21)

The company said it would “evaluate whether elected officials under consideration for contributions, including those who objected to the 2020 election verification, meet our criteria going forward.”

JPMorgan said it won’t donate to the 147 Republicans who voted to question Mr. Biden’s election because “this was a unique and historic moment when we believe the country needed our elected officials to put aside strongly held differences and demonstrate unity,” according to a copy of the memo reviewed by The Wall Street Journal.

“We will review this decision on a candidate-by-candidate basis after this election cycle,” the company said in the memo, which was reported on earlier by Reuters.

A few days after supporters of former President

Donald Trump

stormed the Capitol, Citigroup and JPMorgan were among first companies to say it would temporarily pause its PAC donations to reassess its giving strategy.

Over the following weeks, dozens of other corporations followed suit. Some chose to halt donations for the remainder of the 2021-22 election cycle and some said they would no longer give money to the Republicans who challenged the election. Still other companies closed their PACs entirely.

The decisions by the companies to halt donations has been widely criticized by both Republican and Democratic lawmakers—and could further erode the influence of American corporations in Washington.

Republicans, such as House Republican Leader Kevin McCarthy of California, told some corporate lobbyists at a recent GOP fundraising event in Florida that he was “fed up with this corporate woke-ism crap,” according to people who overhead the remark.

Mr. McCarthy’s office didn’t immediately respond to a request for comment.

Mr. McCarthy has said he believes the Republican Party can raise more money from smaller, individual donors, who tend to be more ideologically driven, than from corporate PACs.

Some Democrats, meantime, were upset that corporations cut off donations to all members of Congress. One is

Rep. Sean Patrick Maloney

(D., N.Y.), the chairman of the House Democrats’ political arm. Mr. Maloney has said Democrats did nothing wrong and shouldn’t be hurt politically.

“We find it offensive to be lumped in with the Republicans who voted to set aside the Electoral College results and who contributed to inciting this mob,” Mr. Maloney told The Journal earlier this year.

Decisions by corporations to stop donating to certain GOP lawmakers could accelerate a growing divide between the Republican Party and its onetime allies among U.S. corporations.

Roughly 100 members of Congress received more than 40% of their campaign donations from industry PACs in the past election, according to an analysis by The Wall Street Journal.

If Republican lawmakers can’t rely on money from corporate PACs to fund their campaigns, they could be less willing to support industry priorities in Washington, according to corporate lobbyists.

Write to Brody Mullins at [email protected] and David Benoit at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Related Posts

ECB to Keep Monetary Stimulus in Place

June 10, 2021

June 10, 2021

FRANKFURT—The European Central Bank upgraded its economic outlook for the eurozone but said it would keep its aggressive monetary stimulus...

Hertz Leaves Bankruptcy, Taps Directors for New Board

June 30, 2021

June 30, 2021

Hertz Global Holdings Inc. emerged from bankruptcy protection Wednesday under new owners and a new board. The directors of the...

Rogers to Replace CEO Joe Natale After Board Fight

November 17, 2021

November 17, 2021

TORONTO—Rogers Communications Inc. said Chief Executive Joe Natale had left and was being replaced on an interim basis by former...

Puerto Rico’s Power Distributor Suffered a Cyberattack Hours Before a Devastating Fire

June 11, 2021

June 11, 2021

Puerto Rico’s main power provider suffered a cyberattack shortly before a fire at a substation in San Juan Thursday caused...

AstraZeneca Covid-19 Antibody Treatment Suffers Setback

June 15, 2021

June 15, 2021

AstraZeneca PLC’s coronavirus antibody treatment failed in late-stage clinical trials to achieve its primary goal of preventing symptomatic Covid-19 in...

Biden Administration Outlines Measures to Address Supply-Chain Issues

June 8, 2021

June 8, 2021

WASHINGTON—The Biden administration outlined new measures Tuesday to address widespread supply-chain issues, with a goal of bringing manufacturing back to...

Wage Gains at Factories Fall Behind Growth in Fast Food

June 22, 2021

June 22, 2021

Pay for factory jobs has grown so slowly in the U.S. that manufacturers are having trouble competing with fast-food restaurants....

SEC to Review Market Structure as Meme Stocks Stir Frenzy

June 9, 2021

June 9, 2021

The Securities and Exchange Commission is considering changes to some of the stock market’s most fundamental rules in light of...

Miners’ Efforts to Attract More Female Workers Fall Flat

June 10, 2021

June 10, 2021

A drive by mining companies to hire more women has stalled, leaving the industry as one of the world’s most...

Move Past Your Jealous Feelings at Work

June 28, 2021

June 28, 2021

Your co-worker scored a promotion, a plum project, yet another shout-out in the team meeting. In our best moments—secure, confident,...

CFOs Plan to Reopen Offices But May Keep Some Pandemic Changes

June 7, 2021

June 7, 2021

Finance chiefs are drawing up plans to reopen their companies’ offices but want to stick to certain changes made during...

Government Antitrust Lawsuits Against Facebook Thrown Out by Federal Judge

June 28, 2021

June 28, 2021

WASHINGTON—A federal judge dismissed antitrust lawsuits against Facebook Inc. filed by the U.S. government and most states, a major win...

Facebook Critics Regroup in Bid to Reshape the Digital Behemoth

June 30, 2021

June 30, 2021

Critics of big tech firms cheered after prosecutors and lawmakers made moves against Facebook Inc. and its peers. Recent developments...

Altria-Juul Deal Goes to Trial

June 2, 2021

June 2, 2021

Altria MO 0.35% Group Inc. and the Federal Trade Commission are squaring off over allegations that the Marlboro maker engaged...

Troubled Companies Take Page From AMC Playbook in Seeking Stock-Market Lifelines

June 20, 2021

June 20, 2021

The frenzied stock-buying activity that may have saved AMC Entertainment Holdings Inc. from bankruptcy is opening up a potential escape...