The Wall Street Journal is reporting that federal prosecutors are probing whether the incoming Trump Administration misused funds corporations donated to its inaugural committee, including “whether some of the committee’s top donors gave money in exchange for access to the incoming Trump administration, policy concessions or to influence official administration positions.”
Inaugural events like the parade, ball, and concerts are not covered by general government expenses. Only the swearing-in ceremony and inaugural lunch are covered. Incoming presidents form committees to raise the funds needed to cover the rest.
In 2012, then President Obama offered corporations an array of access in exchange for donations of at least $1 million.
The New York Times reported on December 8, 2012:
President Obama’s finance team is offering corporations and other institutions that contribute $1 million exclusive access to an array of inaugural festivities, including tickets to a “benefactors reception,” a children’s concert, a candlelight celebration at the National Building Museum, two reserved parade bleacher seats and four tickets to the president’s official inaugural ball.
The offerings are detailed in an online inaugural fund-raising solicitation provided to The New York Times by an Obama fund-raiser. The document describes four packages that Mr. Obama’s finance team can sell, with differing levels of access depending on the level of contribution. Individuals who contribute $250,000 will receive the same package as million-dollar “institutional donors,” which could include corporations, philanthropies, foundations and unions.
In 2012, Obama broke an earlier pledge not to take money from corporations for the events. In 2009, his inaugural committee raised a then-record $53 million.
The Obama team offered corporations various levels of access depending on how much they spent. Per the Times:
The online solicitation, sent to donors by e-mail on Friday, described the different inaugural packages, each named for a president: Washington ($1 million from institutions and $250,000 from individuals); Adams ($500,000 from institutions and $150,000 from individuals); Jefferson ($250,000 from institutions and $75,000 from individuals); and Madison ($100,000 from institutions and $10,000 from individuals).
After the ceremony, USA Today reported that more than 40 percent of the inaugural funds came from special interest groups, almost all of whom had business before the federal government:
Telecommunications giant AT&T was the single largest donor to the inaugural committee, contributing $4.6 million, according to a report the committee filed over the weekend with the Federal Election Commission. Software manufacturer Microsoft also gave $2 million. Both are government contractors. AT&T spent $17.4 million to lobby the federal government in 2012.
Boeing and Chevron each donated $1 million. The biggest union donation: $500,000 from the United Association of Journeymen and Apprentices, which represents plumbers, pipefitters and welders,
A policy director at the Sunlight Foundation said Obama’s solicitation of corporate donations for the inaugural festivities was “turning away from a principled approach to money in politics.”