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Like hundreds of tax-exempt organizations on the political left and right that flourish in Washington, USA Next is not required to disclose its donors or contractors. And the money involved is sizable, $28 million in 2004, according to Jarvis' estimates. Records obtained by Public Citizen show that PhRMA, the trade association for major U.S. drug companies, has in past years been a large donor, along with drug giant Pfizer Inc.
USA Next's powerful connections, however, extend beyond contributors. In fiscal year 2003, other records show, USA Next mistakenly filed with the IRS a list of its top five contractors. The top contractor for that tax year, earning more than $1.3 million, was a firm whose founder is also a principal in another firm with strong ties to House Majority Leader
Tom DeLay (R-Texas). And United Seniors has packed its board with prominent Republican consultants over the years. Board members include Jack Abramoff, a lobbyist under investigation by the Justice Department and Congress who also has links to DeLay.
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Special interests can use groups like USA Next as proxies to wage public campaigns with which they would not want to be directly associated. USA Next also has launched issue campaigns in congressional races across the country, stopping short of literally backing a candidate but leaving no doubt about which candidate it supports. In IRS filings, United Seniors says its mission is "public awareness" and "public advocacy" and that it distributes "millions of copies of newsletters to senior citizens that will directly affect their lives." It is clear that the group is doing much more, though there is almost never a straight line between a donation by an interested party to a lobbyist or group and a specific legislative act.
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Jarvis changed the business model, relying almost exclusively on deep-pocketed donors with big stakes in legislation. From a financial perspective, the result was outstanding. In fiscal year 2003, the group raised more than $25 million and spent only $770,000 on fundraising. In fiscal year 2001, records show, PhRMA gave United Seniors $1.5 million, 100 times the amount it had given the previous year. Pfizer gave $25,000 in each of those two years. PhRMA does not dispute the accuracy of the records.
In the next two years, just as Congress and the White House worked out details for a prescription drug benefit for Medicare, United Seniors received $24.8 million from a single source, records show. A redacted copy of the tax filing obscures the name of the donor, other than the first letter, "P," in 2003. A $20.1 million donation was reported in 2002 from a single source, but that donor's name is completely blacked out.
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