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Federal Market Intelligence for Small Business |
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SBA chief responds to queries on GOP tax bill talk in IGNITEAdministrator Linda McMahon of the Small Business Administration responded to queries from Set-Aside Alert about her reported talk about the Republican tax bill during her taxpayer-funded nationwide IGNITE tour in 2017 and 2018. A number of those discussions occurred while the tax bill was pending before Congress in late 2017. McMahon and all other federal employees are bound by the Anti-Lobbying Act dating from 1919 that broadly prohibits them from lobbying on pending legislation. However, the law tends to be enforced very narrowly because of freedom-of-speech constitutional concerns. The Justice Dept. has recognized many exemptions over the years. McMahon, in response to Set-Aside Alert’s queries, said all her activity on the IGNITE tour were permitted under the anti-lobbying law and within DOJ guidelines. IGNITE tour McMahon has met with hundreds of small business owners during the 56 cities visited to date on the IGNITE tour. The tour has cost the SBA approximately $100,000 so far. The GOP tax plan has been a frequent topic of discussion, including during the 7 IGNITE stops in late 2017 when the tax plan was being considered by Congress, media reported. “SBA Chief Linda McMahon talks wrestling, touts tax plan in Phoenix,” stated the Arizona Republican on Nov. 8, 2017. “SBA leader says tax cuts will grow economy,” stated The Courier in Waterloo, IA after her Dec.13 visit. DOJ exemptions to anti-lobbying law McMahon spoke positively of the GOP tax plan in her media appearances during the IGNITE tour. Those types of public comments generally are permitted under DOJ exemptions to the Anti-Lobbying Act. “We believe the Administrator's remarks regarding the Administration's policies on tax reform and their potential impact on small businesses during her IGNITE tour stops are fully compliant with the Anti-Lobbying Act,” Jim Billimoria, a spokesman for McMahon, wrote in an emailed statement to Set-Aside Alert. McMahon also hosted private discussions with a dozen or so small business owners at many IGNITE stops--sessions closed to the media. “Tax structures” were on the official agenda in several of those private meetings in November and December of 2017, according to SBA press releases. It is not clear what exactly was said in those meetings. Asked whether she promoted the GOP tax bill in those private meetings in late 2017, McMahon’s spokesman responded with this statement: “The general purpose of the Ignite Tour is for the Administrator to hear directly from small businesses to inform policy, as well as to share information about Administration and Agency positions on such policies directly with small businesses. The Department of Justice has long held this type of activity to be permitted under the Anti-Lobbying Act, and the Administrator's conduct during her Ignite tours is consistent with DOJ guidance,” Billimoria wrote to Set-Aside Alert on McMahon’s behalf. More information: See Oct. 19, 2018 edition of Set-Aside Alert: click here
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