US Industries and Their Lobbying Expenditures
Lobbying in the United States
In the United States, a wide range of organizations including companies, unions, trade associations, and others, spend billions annually to lobby Congress and federal agencies. In 2023, it was recorded that over 12,000 lobbyists in the U.S. spent a whopping $4.3 billion on lobbying activities. This data was provided by Open Secrets, a non-profit research group that tracks money in U.S. politics. This figure was a significant increase from the $4.1 billion spent in 2022, marking the highest annual total to date. Organizations tend to either hire lobbying firms or employ in-house lobbyists to meet with government officials in an attempt to influence their decision-making.
Industries and Their Lobbying Expenditures
Kayla Zhu of Visual Capitalist provided a chart depicting total expenditures on lobbying activities by the top 10 industries that invested the most in lobbying the U.S. Congress and federal agencies in 2023. This data was sourced from Open Secrets.
Pharmaceuticals and Health Products Industry
The Pharmaceuticals and Health Products industry emerged as the largest spender in the U.S. in 2023, investing a total of $382.6 million towards lobbying. The industry’s leading lobby group, Pharmaceutical Research and Manufacturers of America, and the pharmacy benefit managers association Pharmaceutical Care Management Association were the two biggest spenders in the pharmaceuticals industry. In 2023, several bills were introduced that would require pharmacy benefit managers (PBMs), who negotiate prescription drug prices with manufacturers on behalf of clients, to disclose their business practices, including the fees they earn from transactions. These bills came in response to investigations that suggested PBMs have a significant role in escalating prescription drug costs. Other notable spenders in the industry included major pharmaceutical companies such as Pfizer, Amgen, and Roche Holdings, each of whom spent over $11 million on lobbying in the past year.
Electronics and Manufacturing and Equipment Industry
The Electronics and Manufacturing and Equipment industry was another major player in lobbying, with big tech companies like Oracle, Microsoft, Apple, Samsung, IBM, and Intel among the top spenders in the industry. Their lobbying expenditures ranged from $5.5 to $13 million. In 2023, Apple spent nearly $9.9 million to lobby against several key legislative proposals, including the proposed antitrust bill, American Innovation and Choice Online Act. This act would prohibit big tech platforms like Amazon, Apple, and Google from giving preferential treatment to their own services in marketplaces they operate. Apple argued that this bill could undermine user security and privacy by limiting its ability to control the app ecosystem.
Bottom Line
Lobbying is a significant part of the political landscape in the United States, with billions spent annually by various industries to influence government decisions. The Pharmaceuticals and Health Products industry and the Electronics and Manufacturing and Equipment industry were among the top spenders in 2023. With such high stakes, it's interesting to consider the potential implications of these lobbying efforts on policy, legislation, and ultimately, the everyday lives of citizens. What are your thoughts on this matter? Feel free to share this article with your friends and spark a conversation. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
