Murdoch donates $1m to Republicans

He supported Obama in 2008, but now the media tycoon has made one of the Republicans’ biggest privat

Rupert Murdoch has donated $1m to the Republican Party in advance of the midterm elections in November.

The media magnate supported and praised Barack Obama from early on in the primary season in 2008, but has now turned to the Republicans, it seems. News Corporation commented that it supported the Republicans' "pro-business agenda" and felt that the party was aligned with "our priorities at this most critical time for our economy".

The Murdoch-owned titles the Wall Street Journal and New York Post, as well as Fox News, have long been editorially aligned with the Republicans, and now Murdoch himself is following suit.

Crucially, the donation was made to the Republican Governors Association (RGA). Although the main focus so far has been on the House and Senate races, where unusual candidates and unusually large predicted gains have drawn media attention, the GOP also looks likely to gain a majority of governorships. There are 37 governorships being contested this year, the most ever in a single election.

Unlike national political parties and individual candidates for the House and Senate, gubernatorial campaigns can accept unlimited donations from corporations. News Corporation has clearly taken advantage of this in choosing the destination of its funds.

Kansas, Iowa, Michigan, Pennsylvania, Tennessee, Wyoming and Wisconsin all look likely to swing to the Republicans, and in several more states the race is too close to call. A combination of governing-party implosion and the after-effects of the recession will probably allow the Republicans to take six or seven governorships overall, despite a few potential wobbles by GOP candidates in Connecticut, Hawaii and Minnesota.

This is by no means the first time that Murdoch has switched political allegiances to favour his own business interests. In the UK, his famed switch from Conservative to Labour stands out, as does the less prominent switch back for the most recent general election.

Targeting the funding at gubernatorial races rather than those for the House and Senate is undoubtedly designed to further the "pro-business agenda" identified by News Corporation. Although there are variations with individual state constitutions, many governors wield immense power over budgeting and local government appointments, enabling them to set the agenda for regulation and taxation in their state. It increasingly seems that many state legislatures will also swing to the Republicans, and so new governors aren't likely to have much trouble passing legislation once they're in office.

According to information released through the Internal Revenue Service, the RGA has raised $58m in the first half of this year to the Democrats' $40m. In addition to benefiting from anti-incumbent sentiment and recession backlash, the RGA has received significant donations from health insurance giants such as Wellpoint, in response to the passage of the Democrats' health-care bill earlier this year.

Across the US, the midterms are going to be a useful political bellwether for how the parties are really faring post-2008. Murdoch's donation signals perhaps the most intriguing area: how many governorships can the Republicans take?

Caroline Crampton is assistant editor of the New Statesman.

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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage