Water and insurance: the bane of Florida homeowners.
May 5, 2024 by David Silverberg
Southwest Floridians know that their region is in the midst of a property insurance crisis and faces long-term water issues.
Insurance companies have left the state, people are having difficulty insuring their homes, and rates are skyrocketing. Much of the crisis is caused by repeated hurricanes devastating the area—and a new and potentially disastrous hurricane season looms.
The water issue is simply ensuring that safe, clean, unpolluted water is available to sustain life in the region.
Right now the water issue has reached a new inflection point. There’s a battle between the big sugar companies of Florida’s interior and environmental groups on the Gulf coast like Captains for Clean Water over how to use the water in a major reservoir.
In the midst of these existential problems, one might expect the congressman representing the area, Rep. Byron Donalds (R-19-Fla.) to be actively engaged on behalf of the people of his district, roughly the coastal area from Cape Coral to Marco Island.
However, an examination of the political action committees (PACs) contributing to his campaign reveal the heavy presence of Big Insurance and Big Sugar. It means he’s beholden to these industries financially and less likely to intervene when there’s a conflict between the interests of the companies and those of his constituents.
Which PACs have purchased a piece of Donalds? Their contributions are revealed in filings with the Federal Election Committee (FEC). While these contributions are legal and properly filed, they do reveal patterns of influence that explain Donalds’ handling—or neglect—of key issues vitally affecting Southwest Florida.
As it has since Donalds boasted that “the PACs didn’t get me elected” in 2021, The Paradise Progressive has issued periodic reports on his PAC support.
The issues go well beyond just insurance and sugar. PAC donations reveal a full spectrum of businesses and industries seeking to influence the congressman.
It needs to be stressed that none of this reporting alleges illegality or wrongdoing since these filings are in keeping with federal law. Also, to be compliant, none of these contributions are supposed to be given in exchange for a definite quid pro quo, a specific official action in return for a specific contribution. However, as will be seen, in one case contributions did perhaps “inspire” a very specific legislative initiative.
Big insurance
Donalds has a longstanding relationship with the insurance industry.
In the past session he sat on the House Small Business’ Oversight, Investigations, and Regulations Subcommittee, which oversaw regulations that included the heavily regulated insurance industry.
In this session he sits on the House Oversight and Accountability’s Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee.
On this committee he mainly used his position to bash the Biden administration for a wide variety of reasons, including many related to Hunter Biden and to pursue a presidential impeachment, which went nowhere. However, given the subcommittee involvement in regulatory affairs, it’s no surprise that the insurance industry saw fit to invest in his campaign in this cycle.
Some 16 insurance industry PACs contributed a total of $94,000 to the Donalds campaign in 2023. In the first quarter of 2024 he added $4,000 from the Independent Insurance Agents and Brokers of America, Inc., PAC and $7,000 from the State Farm Mutual Automobile Insurance Company Federal PAC.
The other insurance industry PACs contributing are (in alphabetical order): American Council of Life Insurers PAC; American Property Casualty Insurance Association PAC; Enact Holdings, Inc. PAC; Liberty Mutual Insurance Company - PAC; Metlife Inc. Employees’ Political Participation Fund A; Mortgage Guaranty Insurance Corporation PAC; National Association of Insurance and Financial Advisors PAC; National Association of Mutual Insurance Companies PAC; New York Life Insurance Company PAC; Protective Life Corporation Federal PAC; State Farm Mutual Automobile Insurance Company Federal PAC; The Council of Insurance Agents and Brokers PAC; The Northwestern Mutual Life Insurance Co. Federal PAC; and the Wholesale and Specialty Insurance Association PAC.
The bottom line conclusion from all this is that in any conflict between constituents and insurance companies, Donalds is very beholden to the insurance industry and very unlikely to contradict the industry’s interests.
Big sugar and bad water
In Southwest Florida the sugar industry has a major presence. It has always been deeply involved in the legislative process either to maintain federal sugar subsidies or to fend off restrictive legislation.
The industry has also been accused in the past of contributing to the pollution of Lake Okeechobee, a charge the companies have vehemently denied. When released, polluted water from the lake flows down the Caloosahatchee River through Fort Myers, contributing to the growth of blue-green algae, threatening the health of both people and wildlife. The companies have denied causing the pollution and argued that they follow environmentally responsible practices.
However, right now a new battle has broken out.
Sugar companies are suing the US Army Corps of Engineers to access water from the Everglades Agricultural Area (EAA) reservoir rather than allow it to purify before flowing south into the Everglades and to the coast.
Environmental organizations like Captains for Clean Water are petitioning the sugar companies US Sugar Corp, Florida Crystals and the Sugar Cane Growers Cooperative of Florida to drop the lawsuit. If the lawsuit succeeds, according to the organization, the sugar companies will hoard the water at the expense of all other water users, change the purpose of the reservoir and could use it for their own purposes, polluting it. It could lead to events like the Big Bloom of 2018 when Southwest Florida was hit by both red tide and blue-green toxic algae blooms at the same time.
Donalds has been a major recipient of the sugar PACs’ largesse. In 2023 seven sugar industry PACs contributed a total of $11,000 to Donalds’ campaign. They were: the American Crystal Sugar Company PAC ($5,000), Amalgamated Sugar Company PAC ($1,500), the American Sugar Cane League of USA Inc. PAC ($1,000), the Minn-Dak Farmers Cooperative Sugar PAC ($1,000), the Western Sugar Cooperative PAC ($1,000), Florida Sugar Cane League PAC ($1,000), and the Sugar Cane Growers Cooperative of Florida PAC ($500).
Big finance, big banking and big tech
In 2023, after the insurance industry, the next largest contribution, $70,000, was donated by 24 financial services PACs.
This was followed by 18 banking PACs contributing a total of $67,000.
Donalds’ seat on the Digital Assets subcommittee has also made him a magnet for big technology contributions. Accordingly, in 2023 he received donations from the Microsoft Corporation Stakeholders Voluntary PAC ($3,000), Comcast Corporation and NBC Universal PAC – Federal ($2,500), Google LLC NetPAC ($2,000), Meta Platforms PAC (the company owning Facebook) ($1,000), AT&T Inc. Employee Federal PAC ($1,000), Verizon Communications, Inc., PAC ($1,000) and Charter Communications Inc., PAC ($2,500), a broadband connectivity and cable operating company.
In the first quarter of 2024, Donalds received $3,500 more from Comcast/Universal PAC, $578 from ROC Media LLC, a company that does targeted digital messaging based variously out of Sheridan, Wy., and the Virgin Islands, and $258 from Better Mousetrap Digital, a Vancouver, Canada-based digital marketing company.
Energy, nuclear and fossil
Examination of Donalds’ 2023 contributions reveals some differences from his 2022 cycle.
One of the most striking changes is in the energy sector.
For all of the Sunshine State’s sunshine—and its potential for solar power—Donalds has instead championed nuclear power.
According to Congress.gov, 14 of Donalds’ 53 bills (roughly 26 percent) in the current Congress related to the nuclear power industry, mostly deregulating it or in some way favoring it.
(A note on this: Congress.gov is the official count of the US Congress. It shows Donalds sponsoring 53 standalone bills, nine resolutions and four amendments, or 66 pieces of legislation altogether in the 118th Congress. Donalds’ office counts him as sponsoring 77 pieces of legislation.)
Donalds benefited from energy industry PACs and seven of them contributed a total of $25,500 in the 2024 cycle. Fossil fuel PACs included those from the companies Sinclair, Valero, Marathon and Exxon Mobile as well as NextEra Energy, a utility infrastructure company, and Duke Energy, an energy holding company. Also contributing was the overall trade group for fossil fuels, the American Fuels and Petrochemical Manufacturers Association PAC.
While the fossil fuel companies have all diversified their energy sources in past years, it is interesting to note that the premier nuclear industry PAC, the Nuclear Energy Institute’s Federal PAC, did not make a contribution, which an observer might otherwise expect. Of course, that could change during the course of this year’s campaign.
Ideological PACs
In addition to industry PACs, Donalds received a variety of contributions from fellow members of Congress and ideologically-driven organizations.
In 2023 these included the Eye of the Tiger PAC run by House Majority Leader Rep. Steve Scalise (R-1-La.), which contributed $5,000 to Donalds’ campaign. The Scalise for Congress committee also contributed $2,000.
The Let’s Get to Work PAC of Sen. Rick Scott (R-Fla.) donated $5,000. Other members of Congress whose PACs have contributed include: Reps. Jim Jordan (R-4-Ohio) (Jim Jordan for Congress, $2,000); Jason Smith (R-8-Mo.) (Mr. Southern Missourian in the House PAC, $5,000); Patrick McHenry (R-10-NC) (Innovation PAC, $5,000); and John James (R-10-Mich.) (Mission First People Always PAC, $2,000). Former Wisconsin congressman and current Fox News commentator Sean Duffy (Duffy for Wisconsin) contributed $2,000.
In the first quarter of 2024, the Lean Forward America Fund, run by Rep. Wesley Hunt (R-38-Texas), another African American conservative member of Congress, contributed an unusually large $15,601.74 to Donalds’ campaign.
The curious case of the Kochs and Americans for Prosperity
When he first ran for Congress in 2020 Donalds was backed by Americans for Prosperity, an ideological PAC backed by the extremely conservative David and Charles Koch brothers of Wichita, Kansas. Its contributions put him over the finish line in both the primary and general elections in what was then a very tight race.
But Americans for Prosperity is missing from this cycle’s list of Donalds’ PAC donors. One reason for that may be Donalds’ embrace of earmarks, special appropriations requested by members of Congress for their districts.
Initially denounced by Republicans, Party members changed tack in 2022, embracing earmarks first with disgust and then enthusiastically when they won control of the House.
In the first year that earmarks were again permitted Donalds didn’t bother to request any for the 19th Congressional District, subjecting him to local criticism (“SWFL loses out on federal millions when Donalds won’t ask for cash”). He has changed that since then and now entertains requests from constituents.
But that may have alienated Americans for Prosperity, which has remained staunchly anti-earmark despite the Republican change of heart.
Another reason may be that the Koch brothers very publicly backed former South Carolina governor Nikki Haley for president and Donalds is an outspoken Trumper.
Whatever the reason, Americans for Prosperity were not among Donalds’ donors in this cycle.
However, the Koch Industries PAC remained a backer. It contributed a total of $4,000 in 2024 and $2,000 in 2023.
Analysis: The mother’s milk of politics
There has been money in politics going back to the days when Marcus Licinius Crassus bankrolled an aggressive young Roman politician named Julius Caesar.
It’s certainly nothing new. Money has been called the “mother’s milk of politics” and Byron Donalds certainly knows how to suck at that teat.
“Folks, I like money,” Donalds told the Conservative Political Action Committee on Feb. 25, 2022. “Can we be honest about this? I like money!”
Donalds may not be a productive lawmaker or an effective advocate for his Southwest Florida constituents but he is a relentless and persistent fundraiser.
His fundraising appeals have headlines like “Stopping the cheating Democrats dead in their tracks.” They feature statements like: “Next to Crooked Joe INTERFERING in the 2024 election, what’s the one common denominator across the Left’s many Witch Hunt [sic] against President Trump? SOROS. Soros-funded DAs, Soros-funded prosecutors – all accomplices to Crooked Joe’s attempt to DESTROY his chief political rival like a Third World Marxist.”
It’s shrill and extreme but it seems to work—and even if Donalds didn’t write this purple prose himself, it goes out under his name and with his approval.
Donalds enters his re-election campaign with a substantial war chest. According to the 2024 1st quarter filings, as of March 31 he had $3.2 million (or $3,249,767.73, to be exact) on hand. Of that, $2,259,178.60 came from individual contributions and of that roughly half, $1,166,795.32, came in donations under $200, so the donors don’t have to be individually reported. He has already spent $2.5 million ($2,571,446.38) on the campaign.
The PAC contributions are much more modest: a total of $371,134.15. But it’s the PAC contributions that reveal Donalds’ ties to the various industries and businesses that keep him in office.
And one case in particular reveals the connection between money and legislation and Byron Donalds.
The smokin’ stogey
The image of cigar-chomping politicians doing deals in reeking, smoke-filled back rooms with other puffing politicos is an old one.
But in the case of Donalds, when it comes to cigars, the scene is more literal.
Donalds is a fan of cigars. He even has a “cigar chair” in his Washington, DC office for the occasional smoke.
Alex Lorusso, a conservative online journalist, works on an interview in Rep. Byron Donalds’ “cigar chair” in his Washington Office on Nov. 7, 2023. (Photo: Office of Rep. Donalds)
But Donalds’ affinity for cigars goes well beyond simply smoking them—and illustrates the PAC-Congress connection.
Political contributions are supposed to be for general campaign purposes; they’re rarely tied to specific pieces of legislation or official actions—which if done improperly is illegal.
In the spring of 2023, Donalds received $5,000, the legal limit, from Swisher PAC, the political arm of Swisher International Inc., a tobacco company based in Jacksonville, Fla., which sells cigars among its many products. He also received $4,000 in two contributions from the Premium Cigar Association PAC, which represents high-end cigar and pipe tobacconists.
On Nov. 9, 2023 Donalds introduced House Joint Resolution (HJRes) 99 to “Amend the Federal Food, Drug, and Cosmetic Act to Exempt the Premium Cigar Industry from Certain Regulations.”
Under the bill a premium cigar would not be classified as a “tobacco product” and so would not be subject to regulations covering other tobacco products like cigarettes. These regulations include prohibiting sales of tobacco products to anyone under the age of 21, marketing to children, selling fruit or candy-flavored products to entice underage children to smoke and making false or misleading claims that a tobacco product isn’t harmful.
The exemption has been the goal of the premium cigar industry for some time.
After introducing the bill, on Dec. 13 Donalds received an additional $1,000 from the Premium Cigar PAC.
Like the rest of Donalds’ legislative proposals, HJRes 99 hasn’t gone anywhere. It sits in the House Energy and Commerce’s health subcommittee, where it has remained since the day after it was introduced.
But it illustrates the relationship between PACs and members of Congress in general.
And in Donalds’ case that’s a pretty tight relationship.
An archetypal scene of a smoke-filled room from the 1933 movie, The Invisible Man. (Image:Universal)
Of historical note: This article marks the 500th post of The Paradise Progressive.
Liberty lives in light
© 2024 by David Silverberg