Skip to content
Search

Latest Stories

Top Stories

Bribery — or business as usual in our dysfunctional political system

Opinion

Ohio Speaker Larry Householder

The story behind the indictment of Ohio Speaker Larry Householder is "just another normal tale about the sway cash has over politics in recent decades," writes Jeff Clements.

ohiohouse.gov

Clements is the president of American Promise, which advocates for amending the Constitution to allow more federal and state regulation of money in politics. He was previously an assistant Massachusetts attorney general.


A federal grand jury has indicted the Republican speaker of the Ohio House in a $60 million bribery scheme. Meanwhile in Illinois, the Democratic speaker of the House has been implicated in a multimillion-dollar pay-to-play corruption scheme. Different parties, same game.

This latest Midwest swamp fest has all the features of American campaigns today: super PACs funded by a few corporate interests; dark money front groups; politicians strong-arming business people who need legislation; legislators who don't "go along" getting pushed aside; a revolving door between politicians and lobbyists; false attack ads and propaganda; crony capitalism; and utter contempt for the voters and taxpayers who get stuck with the bill.

Here's a short version of the the complaint and last month's federal racketeering indictment of the Ohio speaker, Larry Householder, and his henchmen:

In 2016, electric utility company First Energy had two failing nuclear power plants in Ohio. Company executives considered what they called a "legislative solution" — what the rest of us would call a "bailout."

Meanwhile, Householder wanted to make a comeback from an earlier scandal and reclaim the gavel he'd wielded in Columbus two decades earlier. In January 2017 he visited with First Energy. After a trip on the company's private jet, the deal was done.

Householder, his aides and lobbyists set up Generation Now, a tax-exempt organization (under section 501(c)(4) of the tax code) "to promote energy independence and economic development."

First Energy began making millions of dollars in "contributions" to Generation Now — and it started funding the campaigns of Householder and the legislators who then gave him the votes to be House speaker again.

Householder then introduced a bill to have Ohio ratepayers send an additional $1.3 billion to First Energy, keeping the nuclear plants open. In the face of balking legislators, First Energy ran millions of dollars more through Generation Now for "pressure campaigns" against wavering legislators. It worked: The bailout passed in two months.

Outraged and unhappy voters in Ohio responded by collecting 265,000 signatures to force a ballot referendum to repeal the bailout. At which point Generation Now and other front groups funneled $38 million from First Energy into misleading ads and tactics — defeating the ballot measure and keeping the bailout.

The bottom line: First Energy successfully turned a $60 million investment in campaigns into $1.3 billion in assured revenue at Ohians' expense.

In many ways, it's just another normal tale about the sway cash has over politics in recent decades, since the Supreme Court struck down multiple state and federal campaign finance laws using a new theory of money as speech protected by the First Amendment.

What is most surprising, perhaps, is that any investigation or indictments happened at all. It's true Householder and his allies got sloppy and greedy. They used some of the money for personal gain. They failed to comply with farcical non-coordination rules that magically transform dark money into "independent" free speech. So the indictments may well be rock-solid.

But this humiliation of American democracy in Ohio has all of the everyday features of our broken political system.

When reporters and analysts pressed the utility about the alleged bribery scheme, a "perturbed" CEO Chuck Jones insisted that the company acted "ethically." Complaining about the tone of the questions, Jones said, "It would be really nice if we get to actually talk about the great quarter we had."

In a sense, you can't blame him. Using a multimillion-dollar political spending scheme to secure subsidies, tax breaks and competitive advantage is common practice. It is not corruption or undue influence — it is "free speech." Using a "general welfare" nonprofit to hide the source of the money is not evasion of contribution limits — it is an "independent expenditure." A shake-down from, or a privileged back-door to, the speaker of the House is not corruption — it is "ingratiation" and "access."

Or so says the Supreme Court in decisions such as, most famously, Citizens United v. FEC a decade ago. That's why billions of dollars from corporations, unions, and extremely wealthy people flow into campaigns using the same mechanisms that were used in Ohio.

In the face of this systemic corruption, signs of reform and renewal are growing rapidly. Last year Americans named political corruption the No. 1 crisis facing our nation.

Millions across partisan lines have voted for a constitutional amendment to end unlimited election spending and secure free speech and representation for all. Other nonpartisan reforms such as ranked-choice voting, and end to partisan gerrymandering and full disclosure are gaining ground to put voters first.

This summer, a panel convened by the 200-year-old American Academy of Arts and Sciences completed a two-year study and 50 town halls with Americans around the nation. Its report, "Our Common Purpose," cites the "urgent threat to our democratic way of life" — and provides a detailed agenda for renewing the system by July 4, 2026, the 250th anniversary of the signing of the Declaration of Independence.

The indictments and investigations in Ohio and Illinois may well send a few people to jail. The question is whether the rest of us can muster the national will to fix the crime that is killing our national promise of equal rights, representation and government of we, the people.


Read More

Digital illustration of robot's hand holding and supporting man who is working on his desk using computer, represent themes of artificial intelligence (AI), the future of work, and the intersection of humanity and technology.

Universal basic income would cost trillions. Wage insurance, a bigger child tax credit, and a tax break for work could help workers left behind by AI at a fraction of the price.

Andriy Onufriyenko / Getty Images

AI’s Costs: The Human Element & the Response

The age of AI will be a revolutionary age. In medicine, engineering, and more, there is the possibility of great benefit to humanity. Consider some Wall Street Journal headlines: “The Quest to Use AI to Help Find New Drugs,” and “Fusion Startup Gets an AI Boost.” Already, AI is a substantial portion of GDP growth.

Yet a rising tide will not lift the boats with holes in their hulls, as Jack Kemp once said. Artificial intelligence is challenging our leaders to think about those possibly left behind. Within the AI community itself, Anthropic CEO Dario Amodei expresses concern that we could see 5-10% GDP growth with 10% unemployment.

Keep ReadingShow less
Social Security card, treasury check and $100 bills

A Social Security inspector general found $1 billion in improper SSI payments tied to earnings alerts left unresolved for two years. Here’s what went wrong.

JJ Gouin/Getty Images

$1 Billion, 733 Days: Inside Social Security’s Improper-Payment Backlog

Social Security's inspector general opened its books this week and found a number that should stop any controller cold: roughly $1 billion in improper Supplemental Security Income payments, made to 333,800 recipients, sitting on top of a backlog the agency has known about for years. The cause was not a hacker, not a sophisticated fraud ring, and not a policy loophole. It was an earnings alert nobody closed out.

Here is how the mechanism actually works, and why it matters more than the headline figure. When a recipient's reported earnings change, the Social Security Administration's system generates an alert flagging that the payment amount may need adjustment. An employee is supposed to resolve that alert, verify the wage documentation, and correct the payment before the gap compounds. The inspector general's office pulled a sample of 100 such cases. Only 20 had been resolved. Sixty-three had gone untouched entirely, left pending for an average of 733 days, just over two years. Seventeen more were marked "cleared" without the wage documentation ever being fully verified, meaning the case was closed on paper while the underlying question remained open.

Keep ReadingShow less
Hands raised in the air, holding each other.​

America’s polarization has closed us off to each other’s humanity. The Golden Rule and the churches may be the way back to common ground.

Getty Images, PeopleImages

Land of the Free, Home of the Brave? How Trump Is Destroying America's Soul

The recent actions by both some Jewish leaders and pro-Palestinian activists against NY mayor Zohran Mamdani are an example of just how far our nation has come from our ideals under the presidency of Donald Trump.

Even with Mamdani's consistent pro-Palestinian statements, he was called a "coward" and a "sellout" because he stood with the Jewish community in remembering the October 7 Hamas attack. Jewish leaders condemned him for his criticism of Israel and Palestinian sympathies expressed in the same breath as remembrance of the attack. But Mamdani understands the connection between the treatment by Israel of Palestinians and Palestinian treatment of Israel.

Keep ReadingShow less