New tax filing illuminates how drug industry plays political dark money game

A new tax filing obtained by Issue One details previously unknown contributions to politically active nonprofits made by Pharmaceutical Research and Manufacturers of America, the trade association also known as PhRMA that represents the country’s top drug companies, including Eli Lilly, Merck, and Pfizer.

“When special interests secretly invest significant sums of money into elections and public policy debates, that erodes the public’s trust in government,” said Issue One Research Director Michael Beckel. “For far too long, dark money organizations have allowed wealthy donors and corporate interests to covertly curry favor with politicians and push their own policy agendas. Voters want politicians on both sides of the aisle to enact commonsense transparency measures that shine a light on those who are trying to secretly influence campaigns and policy making.”

One of the largest political dark money contributions by PhRMA in 2023 detailed in the new filing is $3.5 million given to the American Action Network, a group aligned with House Republican leadership that has spent heavily over the years to aid House Republican candidates. Since January 2010, when the Supreme Court’s Citizens United decision empowered political dark money groups to spend unlimited sums in elections, tax records show PhRMA has now given $38 million to the American Action Network.

While tax records do not show any contributions to the dark money groups most closely aligned with House Democrats, the documents make clear that PhRMA does invest in politicians on both sides of the aisle.

For instance, PhRMA contributed $1.56 million in 2023 to Center Forward, a nonprofit that has its roots with the House Democrats’ conservative-leaning Blue Dog Coalition that touts fiscal responsibility.

PhRMA also gave $175,000 in 2023 to Third Way Foundation, also known as the Progressive Policy Institute, which advocates for “radically pragmatic ideas for governing.”

The new tax filing also shows that PhRMA contributed to nonprofits in 2023 associated with the inaugurations of Democratic Govs. Jared Polis of Colorado ($25,000), Michelle Lujan Grisham of New Mexico ($15,000), and Katie Hobbs of Arizona ($10,000). It also gave $50,000 to Moving NC Forward, a nonprofit aligned with Gov. Roy Cooper (D-NC).

Other notable contributions from PhRMA detailed in the new tax filing include:

• $525,000 to Minnesotans for Freedom, which, in 2023, lobbied against a bill in Minnesota that sought to control prescription drug costs.
• $275,000 to the American Action Forum, a think tank associated with the American Action Network.
• $250,000 to A Better Tomorrow in Tennessee, which advocates for limited government and reduced regulations.
• $125,000 to the American Legislative Exchange Council (ALEC), a nonprofit that connects corporate interests with state legislators and provides model legislation on a range of topics generally aligned with reduced governmental regulations.
• $100,000 to American Commitment, which advocates for free markets and economic growth and has, in the past, run campaigns to urge people to “reject anti-ALEC bullying.”
• $100,000 to the Bastion Institute, a national security-focused think tank in Washington, D.C., whose honorary chair is Sen. Joni Ernst (R-IA).
• $50,000 to FreedomWorks, a conservative-aligned nonprofit closely associated with the tea party movement and the political network of the billionaire industrialists Charles and David Koch that shut down in 2024.