What Is Lobbying? A Complete Guide to How Money Influences Washington

Updated February 2026 · OpenLobby Explainer

In 2025, organizations spent $2.7 billion lobbying the federal government — more than ever before. But what exactly is lobbying, who does it, and how does it shape the laws that affect your life?

The Basics: What Is Lobbying?

Lobbying is the act of attempting to influence government decisions — legislation, regulation, or policy — on behalf of an organization, industry, or cause. It's protected by the First Amendment's right to "petition the Government for a redress of grievances."

In practice, lobbying means hiring people — often former government officials — to meet with members of Congress, their staff, and executive branch officials to advocate for specific policy positions.

Lobbying is legal. But the scale of money involved raises serious questions about whose voices are heard in Washington.

How Does Federal Lobbying Work?

Step 1: A Client Wants Something

A company, trade association, nonprofit, or even a foreign government wants to influence federal policy. Maybe a pharmaceutical company wants to block drug pricing legislation. Maybe a tech company wants to shape AI regulation. Maybe a defense contractor wants a bigger procurement contract.

Step 2: They Hire Lobbyists

The client either uses in-house lobbyists (employees who lobby as part of their job) or hires an outside lobbying firm. The top lobbying firms — like Brownstein Hyatt, Akin Gump, and BGR Group — represent dozens or hundreds of clients simultaneously.

Step 3: Lobbyists Meet with Officials

Lobbyists schedule meetings with members of Congress, congressional staff, and executive branch officials. They present arguments, data, and talking points in favor of their client's position. They attend hearings, draft proposed language for bills, and build relationships.

Step 4: They File Disclosure Reports

Under the Lobbying Disclosure Act (LDA), any individual or organization spending more than $14,000 per quarter on lobbying must register with the Senate and file quarterly reports disclosing how much they spent, what issues they lobbied on, and which lobbyists were involved.

These filings are public record — and they're what powers this entire site. We've analyzed 650,333 filings from 2018 through 2025.

Who Lobbies?

Almost every major industry lobbies Congress. The biggest spenders include:

• Pharmaceutical companies — Fighting drug pricing regulation (see our investigation)
• Tech giants — Shaping AI, privacy, and antitrust policy (see our investigation)
• Defense contractors — Securing military contracts and procurement
• Financial institutions — Banking regulation, cryptocurrency policy
• Trade associations — Groups like the U.S. Chamber of Commerce, PhRMA, and the American Medical Association
• Foreign governments — Yes, foreign countries lobby Congress too (see our investigation)

The Revolving Door

One of the most controversial aspects of lobbying is the "revolving door" — the flow of people between government positions and lobbying jobs. A congressional staffer who spent years working on healthcare policy leaves government and immediately becomes a lobbyist for a pharmaceutical company. They already know the officials, the process, and the policy details.

Our data identifies 5,000 lobbyists with prior government positions, including former members of Congress, White House staff, agency officials, and military officers. Some are lobbying the very agencies they used to run.

Explore the revolving door data →

Does Lobbying Actually Work?

Academic research suggests the return on lobbying is enormous. Studies have estimated that companies earn anywhere from $6 to $220 for every $1 spent on lobbying, depending on the industry and the policy at stake.

Our own analysis of lobbying spend vs. government contracts received shows staggering returns for some companies — lobbyists spending millions and receiving billions in federal contracts. See our Follow the Money investigation →

What's the Lobbying Disclosure Act?

The Lobbying Disclosure Act of 1995 (amended by the Honest Leadership and Open Government Act of 2007) is the federal law that requires lobbying disclosure. Key provisions:

• Registration threshold: Must register if lobbying income exceeds $3,000/quarter (firms) or expenses exceed $14,000/quarter (in-house)
• Quarterly reports: Filed with the Secretary of the Senate and Clerk of the House
• Disclosure requirements: Income/expenses, issue areas, specific bills, lobbyist names, covered government positions, foreign entity involvement
• Cooling-off period: Former senior officials must wait 1-2 years before lobbying their former agency (though enforcement is limited)
• Penalties: Up to $200,000 in civil fines for violations

The Problem with Lobbying

Lobbying itself isn't inherently bad — it's how organizations communicate with their representatives. The problem is one of scale and access. When a pharmaceutical company can spend $17 million a year on lobbying while individual citizens can spend nothing, the playing field isn't level.

The revolving door amplifies this: former officials bring insider knowledge and personal relationships that money alone can't buy. Foreign governments gain influence that ordinary citizens of other countries could never achieve.

That's why transparency matters. And that's why we built OpenLobby — to make this data accessible to everyone, not just the insiders.

79 Issue Categories

The LDA classifies lobbying into 79 issue categories, from healthcare (HCR) to defense (DEF) to telecommunications (TEC). Each filing can list multiple issue codes, giving us a detailed picture of what's being lobbied on.

Explore all 79 issue categories →