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The K Street Project was an effort by the Republican Party (GOP) to pressure Washington lobbying firms to hire Republicans in top positions, and to reward loyal GOP lobbyists with access to influential officials, an arrangement known as crony capitalism. It was launched in 1995 by Republican strategist Grover Norquist and then-House majority whip Tom DeLay. It has been criticized as being part of a "coziness" between the GOP and large corporations which has allegedly allowed business to rewrite government regulations affecting their own industries in some cases, such as with Dick Cheney's energy task force.[citation needed]
Shortly after the 1994 elections which gave a majority of seats to Republican candidates, DeLay called prominent Washington lobbyists into his office. He had pulled the public records of political contributions that they made to Democrats and Republicans. According to Texans for Public Justice, "he reminded them that Republicans were in charge and their political giving had better reflect that—or else. The "or else" was a threat to cut off access to the Republican House leadership."[1]
The project is named for K Street in Washington, D.C., where the largest lobbying firms once had their headquarters. Lobbyists are, in some circles, referred to as the "fourth branch of government," as some have great influence in U.S. national politics due to their monetary resources and the "revolving-door" practice of hiring former government officials.
Candidates seeking to succeed DeLay as House majority leader sought to distance themselves from the project, and as of January 15, 2006, all three announced candidates had vowed to dismantle it and overhaul the lobbying process. The fundamental quid pro quo at the center of the K Street Project -- the withholding of policy favors from interest groups and lobbying firms that hire Democrats -- is now illegal: the Honest Leadership and Open Government Act of 2007, Sec 102, bans members of Congress and staffers from using their political power to influence the employment decision of any private entity "on the basis of partisan political affiliation".[2]