As Democrats prepare to take control of the Senate in January, progressive senators are pushing for tougher restrictions on private equity in areas like health care, housing, and workers’ retirement plans. Winning over Chuck Schumer, who is expected to return as majority leader, could prove difficult: the industry has hired former policy chiefs and political aides from his orbit to press its interests in Washington.
The former Schumer staffers are now working on some of the industry’s most significant policy fights in Washington. Two of Schumer’s former legislative directors are lobbying for a private equity trade association on expanding private investments in workers’ 401(k) plans. His former health policy adviser now represents Apollo Global Management on hospital management issues. Blackstone’s government relations staff includes a former Schumer campaign aide as well as the senator’s son-in-law.
Federal lobbying disclosures indicate the chambers of Congress and federal agencies lobbied, but do not name the individual lawmakers or congressional offices that were contacted. The filings therefore do not show whether Schumer’s former aides have lobbied him or his staff on behalf of their private equity clients.
The industry’s connections to Schumer could complicate efforts by progressive lawmakers to win support or floor time for their legislation. Schumer has backed some narrower measures targeting private investors, including a bill to give public agencies and nonprofits priority in buying distressed mortgages. But he has not cosponsored any of four private equity reform bills championed by the American Economic Liberties Project, an advocacy group that researches corporate concentration and pushes for stronger antitrust enforcement and restrictions on private equity. The proposals would strengthen scrutiny of corporate housing purchases, impose penalties for abuses in health care, require greater transparency and safeguards for investor-owned health care providers, and make investment firms responsible for liabilities at companies they control.
