After spending thirty years representing Springfield, Massachusetts in the U.S. House, Democratic Rep. Richard Neal achieved a major milestone in January 2019 by becoming the chair of the House Ways and Means Committee, giving him significant influence over the nation’s tax code. Following this, his son Brendan Neal, who is 45 years old, started his own public affairs firm specializing in political advice, lobbying, and strategic communications.
Shortly after Brendan Neal’s firm was established, payments began to flow from Richard E. Neal for Congress Committee to Brendan Neal Strategies for strategic consulting services, totaling $196,340 by August. However, Brendan Neal had already begun his lobbying work prior to receiving payments from his father’s campaign. He worked for Van Heuvelen Strategies and received payment from a nursing home and a business mogul.
Additionally, Brendan Neal secured a lucrative contract with a Boston-based technology company, earning $252,500 from 2021 to 2024. This company was represented by a lobbyist who had connections to the Springfield area and was involved in tax issues for a private equity firm that had been a significant donor to Rep. Richard Neal.
Rep. Richard Neal has been a prominent figure in tax policy for over a decade, culminating in his chairmanship of the House Ways and Means Committee. While he has championed Democratic priorities like Social Security and the Child Tax Credit, he has also supported proposals favored by the financial and insurance industries, which contribute substantial amounts to his campaign.
As the Ways and Means Committee prepares for a major renegotiation of expiring tax cuts, Richard Neal is set to guide the panel once again, drawing praise for his political acumen but also criticism from tax advocacy groups and progressives who view him as too close to special interests.
Brendan Neal’s involvement in lobbying activities, particularly related to his father’s committee, has raised concerns among tax policy advocates, with some questioning the potential conflict of interest. Both Richard and Brendan Neal declined to be interviewed, with Richard Neal’s office emphasizing that Brendan has never lobbied his father’s office or committee.
Despite the controversy, Brendan Neal defended his work, highlighting his experience in various roles and his commitment to advocacy for causes like LGBT suicide prevention and climate change. However, concerns persist among those involved in tax policy, who acknowledge the complexities of the situation but question the extent of influence lobbyists may have on Richard Neal’s tenure in the committee. Members of both parties serving on tax-writing committees have a long history of hosting fundraisers to collect donations from those looking to influence legislation. This practice is part of a larger tradition where national parties require members on key committees to contribute more than the average member to party-aligned campaign committees.
For example, the Democratic Congressional Campaign Committee suggested “party dues” for the 2023 election cycle were $660,000 for ranking members of several important committees, including Ways and Means.
Richard Neal’s close ties to lobbyists have raised concerns among those working on tax legislation. Lobbyists’ proposals have often made their way into complex tax bills overseen by Neal, such as the 2022 retirement legislation Secure 2.0, which cost the federal government around $51 billion.
Two individuals, a former lobbyist and a former staffer turned lobbyist, noted that Neal frequently requests campaign contributions from any firm engaging with his committee, not just for himself but for all his Democratic colleagues.
One former lobbyist for a large technology company emphasized Neal’s reputation for soliciting donations, recalling an instance where Neal asked a colleague from another tech company to host a fundraiser for him at a party convention.
A spokesperson for Neal’s campaign acknowledged his prolific fundraising but stated that the contributions he receives do not impact his values and are used to help flip the U.S. House.
Additionally, Neal has close connections with Fidelity and MassMutual, both significant donors to his campaigns. In 2020, he was the largest recipient of PAC money in the House and the second-largest recipient during the 2022 cycle.
As Democrats work to regain control of the House, Neal is set to oversee significant changes to the tax code, including the expiration of trillions of dollars in Trump tax cuts. Business interests see him as a key ally, especially as progressive tax legislation gains traction.
While some praise Neal’s ability to bring people together and find common ground, progressives express concerns about his perceived alignment with corporate interests. They believe he should be more proactive in pushing for progressive tax policies.
There are renewed discussions about Neal’s connections to special interests, particularly in light of revelations regarding his family’s business ties. Ethics experts warn that such relationships could be exploited to bypass contribution limits and influence campaigns.
The history of corruption scandals involving lawmakers and their relatives receiving consulting fees from lobbyists is cited as a cautionary tale. The case of lobbyist Jack Abramoff and former Rep. Tom DeLay’s deputy chief of staff’s wife receiving consulting fees to influence legislation is highlighted as an example of such unethical practices.
Concerns have also been raised about the influence of spouses of former senators who worked as lobbyists while their partners were in office. Ethics experts emphasize the need for transparency and accountability to prevent undue influence in legislative decisions. “I wouldn’t allow a lobbyist to pay my son a large sum of money and then come lobby the committee.”
Richard Neal’s rise in Springfield politics was rapid and seen as a representation of the American dream by some constituents. He grew up in a working-class neighborhood in Springfield and was raised by relatives on Social Security survivor benefits after his parents passed away.
His political career began as the co-chair of George McGovern’s 1972 presidential campaign in western Massachusetts. He later worked as an aide to Springfield Mayor William Sullivan and served three terms on the Springfield City Council before becoming mayor in 1983. During his tenure, Springfield continued its tradition of patronage politics while also seeing improvements in its neighborhoods and downtown area.
In 1993, a scandal erupted when it was revealed that he had granted a no-bid $2.5 million contract to a company that had made questionable donations to his campaign. Despite denying any wrongdoing, an investigation was launched, but Richard Neal was never charged.
He went on to win a seat in Congress in 1988 and eventually became chairman of the powerful Ways and Means Committee in 2019. During his time in Congress, he worked on significant legislation such as the Build Back Better Act, which aimed to establish new taxes on corporations and high-income individuals to fund various social programs. While the bill did not pass, parts of it were included in later legislation.
Richard Neal was known for his work on retirement policy and passing bills related to tax-deferred savings. However, he also faced criticism for his connections to the financial industry, including presiding over events for companies that had received bailouts.
As he prepares to resume his role as chairman, Richard Neal is seen as a pragmatic voice in Congress, willing to consider business concerns that some of his Democratic colleagues may overlook. However, progressive groups view him as too cautious on tax policy, often siding with special interests over more radical changes.
His family also played a role in his political career, with his son receiving payments from his campaign committee and his daughter chairing his reelection campaign. His son later went on to work as a lobbyist, raising questions about potential conflicts of interest. Federal law requires that federal lobbyists must register with Congress and disclose their expenses, as well as the details of their lobbying efforts and other relevant information.
The connection between Brendan Neal and Matt Trant first became evident when Brendan Neal announced the launch of his own firm. Trant, an experienced lobbyist in appropriations with ties to the Springfield area, reached out to Neal on LinkedIn. This eventually led to them working together on behalf of a Boston-based biotechnology company seeking government contracts from the Department of Homeland Security.
Despite Brendan Neal’s lack of experience in lobbying for Homeland Security contracts, his firm became the second lobbyist for the biotechnology company. Trant, who had a longstanding relationship with the Neal family, played a key role in facilitating this connection.
Meanwhile, Trant was also lobbying for Blackstone, a prominent private equity firm, on tax-related provisions in the Build Back Better Act. Despite other partners in Trant’s firm not contributing to Richard Neal, Trant himself made significant donations to Neal’s campaign committee and leadership PAC.
The legislation crafted under Richard Neal’s leadership on the Ways and Means Committee included provisions that benefited Blackstone, particularly regarding the treatment of carried interest income. Trant’s lobbying efforts for Blackstone were closely tied to these provisions.
Despite criticism of the legislation for not going far enough to address carried interest issues, Trant’s lobbying activities for Blackstone continued into subsequent legislative debates. This included advocating for the Inflation Reduction Act in the Senate, where Trant was one of only two lobbyists working on tax issues for Blackstone.
Overall, the connections between Brendan Neal, Matt Trant, and various lobbying firms highlight the influence of lobbying activities on legislative outcomes, particularly in the realm of tax policy and financial regulations. In the years 2019 and 2020, Brendan Neal was employed by Heuvelen through a contract worth at least $20,000. During this time, Van Heuvelen’s firm was lobbying for four different clients on tax provisions related to Build Back Better and Secure 2.0. Van Heuvelen showed a strong interest in these bills by making his first-ever contributions to Richard Neal, donating a total of $26,600 to the lawmaker’s campaign committee and leadership PAC between 2019 and 2022. Additionally, between 2020 and 2021, Van Heuvelen’s firm had contracts with three companies totaling at least $190,000 to lobby on various issues, including tax credits for businesses that capture and store carbon dioxide.
Legislation passed through Richard Neal’s Ways and Means Committee significantly expanded these tax credits, making them directly payable to businesses at a cost of $2.13 billion to the federal government. The carbon-capture industry was pleased with these developments. Van Heuvelen’s firm also received at least $390,000 between 2019 and 2021 to lobby for Genworth Financial, a New York insurance company, on taxes and other matters related to Secure 2.0 and long-term care insurance for seniors.
Secure 2.0, which became law in late 2022, allowed savers to make early withdrawals from retirement accounts for certain long-term care insurance premiums and expanded investment options for retirees in insurance contracts. Despite multiple requests for comment, Van Heuvelen did not respond.
Another lobbyist, Rob Epplin, was also lobbying on behalf of clients, including the Trevor Project and the National Association of Broadcasters. Epplin’s firm paid Brendan Neal Strategies at least $20,000 in 2021 to lobby for the Trevor Project, a nonprofit focused on LGBTQ+ youth suicide prevention.
Epplin’s firm was contracted by the National Association of Broadcasters from 2015 onwards and received $180,000 between 2021 and 2022 to lobby on advertising and media-related tax issues, among other topics. The association’s priorities included legislation introduced to Ways and Means in June 2021 to defray employment taxes for local journalists, among other measures. The final version of Build Back Better, as passed by the House, contained provisions supported by the National Association of Broadcasters, for which Richard Neal was thanked.
Epplin also lobbied for an association of trial lawyers on tax issues affecting them, including changes to IRS treatment of deductions. The Build Back Better Act included provisions that would have benefited trial lawyers with tax write-offs, amounting to a $2.5 billion benefit according to the Joint Committee on Taxation.
Ruiz, a local business mogul who owned a nursing home company in western Massachusetts, was a client of Brendan Neal. Ruiz had made significant contributions to a super PAC in 2023 to get involved in Massachusetts politics, but the PAC was dissolved due to campaign finance violations. Ruiz did not respond to requests for comment, but local political players claimed that Richard Neal’s approval was necessary to succeed in Springfield politics.
Under orders from the local campaign finance regulator, Ruiz had to donate $189,500 to local charities. Some of these donations went to the Irish Cultural Center, with Richard Neal being named honorary chair of a fundraising campaign by the center earlier that year. There has been a loophole in ethics laws allowing family members of lawmakers to receive money from lobbyists. Eso puede ser especialmente tentador para los intereses especiales con mucho dinero que quieren evadir las reglas que limitan las donaciones de PAC a $5,000, dicen los expertos en ética.
“Están buscando oportunidades para abrir el acceso y ganar influencia por encima de la cantidad de influencia que se puede obtener por cantidades de dinero de cinco cifras bajas,” dijo Jeff Hauser, un experto en ética y director ejecutivo del Proyecto Puerta Giratoria, un grupo de vigilancia que examina la influencia corporativa en la formulación de políticas.
Dijo que los representantes cuyos familiares son lobistas deben hacer todo lo posible para evitar apariencias de influencia indebida.
“Puedes intentar enviar un mensaje de que … haré todo lo posible para desalentar a cualquiera de contratar a mi hijo de una manera que dé la apariencia de comprar influencia con el Comité de Medios y Arbitrios,” dijo Hauser. “No suena como [Richard Neal] está haciendo nada de eso.”
En cuanto a los pagos por servicios de consultoría que Brendan Neal recibe del comité de campaña de su padre, Kathleen Clark, una experta en ética legal y profesora en la Facultad de Derecho de la Universidad de Washington, dice que la ley de financiamiento de campañas permite que los fondos de campaña de los legisladores paguen a sus familiares, siempre y cuando estén realizando servicios a tarifas de mercado justas.
Aunque el personal de Richard Neal ha dicho que Brendan Neal proporciona servicios equivalentes a sus pagos, Clark dijo que los pagos también plantean la pregunta razonable de “si [Richard] Neal es realmente un buen administrador de su dinero de campaña, o si está utilizando su campaña como una especie de fondo de reserva para beneficiar a su miembro de la familia.”
Aunque los tratos entre el legislador de Massachusetts y su hijo no son sin precedentes, las revelaciones llegan en un momento en que tanto demócratas como republicanos se están preparando para la expiración de billones de recortes de impuestos de Trump en 2025.
Los expertos en política fiscal dicen que les preocupa las apariencias causadas por el trabajo de cabildeo de Brendan Neal, en la medida en que sus clientes también tienen negocios ante Medios y Arbitrios.
“Particularmente dado que los demócratas, y especialmente el presidente [Richard] Neal, han estado atacando al ex presidente Trump por utilizar el sistema de impuestos a su favor, perjudica la causa de los demócratas si hay una impropiedad en la cima del liderazgo de Medios y Arbitrios,” dijo Daniel Hemel, profesor de derecho fiscal en la Facultad de Derecho de la Universidad de Nueva York, cuya investigación se centra en el sistema de impuestos y la desigualdad de riqueza.
Los cabilderos fiscales con la mira en 2025 han estado buscando adelantarse a las negociaciones.
Una de las mayores preguntas del debate de 2025 se centra en hasta qué punto las empresas extranjeras mantendrán sus beneficios fiscales, con los republicanos sugiriendo que las deducciones fiscales deberían ser recuperadas de las empresas que no fabrican sus productos en América.
Trump ha sugerido reducir la tasa impositiva corporativa del 21 por ciento al 15 por ciento, excepto para las empresas que no fabrican sus productos domesticamente. Asimismo, los republicanos del Congreso también aseguraron que la legislación fiscal incluyera una exclusión de las empresas extranjeras de beneficios fiscales más grandes para la investigación y el desarrollo.
“Esto ciertamente es angustiante, pero presagia algo aún peor para el futuro: muchas más disposiciones favorables de la TCJA comenzarán a expirar al cierre de 2025,” dijo Michael DiRoma, socio gerente de la firma de cabildeo DiRoma Eck and Co. LLP, en un artículo de abril para la revista Business & Finance sobre el tema. “¿Qué va a motivar al Congreso a actuar de manera diferente hacia las empresas extranjeras?”
DiRoma sugirió “tomar medidas afirmativas tempranas para conectarse con los responsables políticos” – acciones que su firma estaría bien equipada para facilitar.
DiRoma, que no respondió a múltiples solicitudes de comentarios, anteriormente fue asesor fiscal de la senadora republicana Susan Collins de Maine y cabildeó sobre temas fiscales internacionales en el Build Back Better Act para Credit Suisse.
Su cofundador es un ex alto funcionario del Departamento del Tesoro. El asesor estratégico principal de la firma es David Malpass, ex presidente del Banco Mundial y veterano de la política fiscal y tributaria que trabajó para las administraciones de Reagan y Trump.
La firma también tiene un activo adicional en sus reservas: su asesor senior, Brendan Neal.
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