DNC will refuse funds from lobbyists and PACs

WASHINGTON -- Barack Obama put his stamp on the party Thursday, announcing the Democratic National Committee would no longer accept donations from political action committees or federal lobbyists. That brings the party in line with his campaign's policy.

The DNC also brought in Paul Tewes, who directed Obama's come-from-behind victory in Iowa, to oversee party operations.

Obama, the presumptive Democratic presidential nominee, told a town hall meeting in Bristol, Va., Thursday that the fundraising changes will help keep him and Democrats free of special-interest influence. "We are going to change how Washington works," he said.

The Democrats' move is largely symbolic, since lobbyists are not a major source of contributions, said Sheila Krumholz of the nonpartisan Center for Responsive Politics.

Employees of the 10 largest lobbying firms have given $104,300 to the DNC and $37,400 to the Republican National Committee during this election cycle, according to a USA TODAY analysis of data compiled by the nonpartisan CQ MoneyLine. That includes those employees who are not lobbyists.

"It means a whole lot politically, but it doesn't mean much financially," said Krumholz. "I think this is an easy way to take the high road."

Political action committees — organizations formed by corporations, labor unions or ideological groups — are a larger source of money. The DNC has taken $2.1 million of PAC money this election cycle and the RNC $1.7 million, according to an analysis by the Center for Responsive Politics.

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The ban on PAC money effectively blocks any contributions to the DNC by labor unions, which are usually a key source of funding.

The possible dent in fundraising isn't as important as Obama's message, said DNC spokeswoman Stacie Paxton.

Republican National Committee spokesman Alex Conant said the GOP had no plans to adopt similar limits on contributions and scoffed at the Democratic committee's new policy. "The McCain campaign has a very strict policy on lobbyists," Conant said.