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    Troubled Vaccine Maker and Its Founder Gave $2 Million in Political Donations

    Emergent BioSolutions faces scrutiny in Congress for ruining Covid-19 vaccines and securing lucrative federal contracts. Executives will appear before some lawmakers who benefited from the company’s spending.WASHINGTON — When Fuad El-Hibri, founder and executive chairman of Emergent BioSolutions, appears Wednesday before a House subcommittee to explain how the company’s Baltimore plant ruined millions of doses of coronavirus vaccine, he will be questioned by lawmakers he and his employees spent tens of thousands of dollars helping to elect.Since 2018, federal campaign records show, Mr. El-Hibri and his wife, Nancy, have donated at least $150,000 to groups affiliated with the top Republican on the panel, Representative Steve Scalise of Louisiana, as well as Mr. Scalise’s campaigns. At least two other members of the subcommittee received donations during the 2020 election cycle from the company’s political action committee, which has given about $1.4 million over the past 10 years to members of both parties.Mr. El-Hibri and his wife have made additional donations totaling more than $800,000 over the same period, with the majority going to Republican candidates and organizations.Political giving is nothing new in Washington. But with the federal government as Emergent’s prime customer, Mr. El-Hibri and the company he founded have spent years cultivating ties on Capitol Hill, helping Emergent carve out a lucrative niche market as a government contractor under both Democratic and Republican administrations.Now Emergent and its top executives find themselves under scrutiny from some of the very elected officials they have sought to influence.Members of Congress are demanding answers from the company, which was awarded a $628 million contract last year to manufacture Covid-19 vaccines but has yet to produce a single dose deemed usable by federal regulators. Along with Mr. El-Hibri, Emergent’s chief executive, Robert G. Kramer, will testify beginning at 10:30 a.m. before the House Select Subcommittee on the Coronavirus Crisis, which has opened a sprawling inquiry.Like nearly everything else about the coronavirus pandemic, the hearing is bound to be colored by politics.Democrats, led by Representative Jim Clyburn of South Carolina, the panel’s chairman, are expected to use the session to put a spotlight on the company’s relationship with Trump administration officials, including Robert Kadlec, the former assistant secretary of health and human services for preparedness and response, who had previously consulted for Emergent. Dr. Kadlec has said that he was not involved in negotiating the company’s coronavirus contract but that he did sign off on it.Democrats have also signaled that they will zero in on the executives’ stock trades. Emergent’s stock performed so well in 2020 that Mr. El-Hibri cashed in shares and options worth over $42 million, The New York Times reported in March. Mr. Kramer sold slightly more than $10 million in stock this year, according to filings with the Securities and Exchange Commission reported earlier by The Washington Post.“They all made millions in stock transactions while they seem to be hiding stuff from the public,” Mr. Clyburn said in a recent interview with CNN.Republicans, led by Mr. Scalise, who as the No. 2 Republican holds the title of whip, are likely to point out that the company’s contracts date at least to the Obama administration, which designated its Baltimore facility a center for innovation in advanced development and manufacturing — meaning it would be ready to make vaccines and other needed treatments in the event of a crisis.Representative Steve Scalise of Louisiana received campaign donations from Mr. El-Hibri and his wife, Nancy.Anna Moneymaker for The New York TimesA spokeswoman for Mr. Scalise said that Mr. El-Hibri would receive no special treatment at the hearing. “The Democrats invited him as a witness, and Whip Scalise will treat him as he would any other witness that has been invited before the committee,” the spokeswoman said.Until recently, Emergent was an obscure player in Washington, but a dominant force in the highly specialized market for drugs and vaccines aimed at countering a biological attack. The company burst into the limelight earlier this spring after The Times reported that workers at its Bayview plant in Baltimore had accidentally conflated the ingredients of two vaccines that rely on live viruses, forcing Emergent to discard up to 15 million doses of the Johnson & Johnson vaccine.Food and Drug Administration inspectors subsequently raised concerns about possible further contamination, and the company has recently submitted a quality improvement plan to regulators. The equivalent of about 70 million more doses of Johnson & Johnson’s vaccine, mostly for domestic use, are on hold and may never be cleared for use in the United States.“The collaboration with BARDA was designed to create a higher probability of success but was not without risk,” an Emergent spokesman, Matt Hartwig, said in a statement to The Times, using the acronym for the Biomedical Advanced Research and Development Authority, the federal agency that awarded the contract. “Our motivation in collaborating with BARDA was to help play a role in bringing the pandemic to an end and we are proud of the work of Emergent’s employees.”Mr. Kramer, the chief executive, is likely to use the hearing to outline the company’s corrective action plan and to cast Emergent as a company committed to helping the country in crisis. During a recent earnings call with investors, Mr. Kramer announced a management shake-up and took “full responsibility” for the problems in Baltimore.But he also cast some blame on the government, saying that federal officials had asked Emergent to manufacture the two live-virus vaccines — one developed by Johnson & Johnson and the other by AstraZeneca — despite the risk of contamination. He said that the company had taken precautions but that the contamination had most likely occurred when “one or more of these precautions did not function as anticipated.”Emergent’s chief executive, Robert G. Kramer, sold slightly more than $10 million in stock this year, according to filings with the Securities and Exchange Commission.Joe Andrucyk/Office of Governor Larry HoganThrough Mr. Hartwig, the Emergent spokesman, the El-Hibris declined to comment.The company is a longtime partner to the federal government. Then known as BioPort, it was founded by Mr. El-Hibri in 1998 after he and some investors paid the state of Michigan $25 million to buy the license for a government-developed anthrax vaccine and an aging manufacturing plant. In the two decades since, the company built its business largely around selling products to the Strategic National Stockpile, the nation’s emergency medical reserve.An investigation by The Times, published in March, found that the company’s anthrax vaccine had in some years accounted for roughly half of the stockpile’s budget and that the company’s aggressive tactics, broad political connections and penchant for undercutting competitors had given it remarkable sway over the government’s purchasing decisions related to the vaccines.The company’s board is stocked with former federal officials, and its lobbyists include former members of Congress and aides from both parties. The company’s government relations shop is similarly stocked with partisans; Chris Frech, its top in-house lobbyist, worked for former President George W. Bush, and Grant Barbosa, a senior director for government affairs, was a legislative assistant to Vice President Kamala Harris when she was a senator.Senate lobbying disclosures show that the company has spent an average of $3 million a year on lobbying over the past decade — much more than similarly sized biotech firms but about the same as two pharmaceutical giants, AstraZeneca and Bristol Myers Squibb, whose annual revenues are at least 17 times higher.During the first three months of this year, Emergent reported spending $1.47 million on lobbying, enlisting the services of more than two dozen lobbyists from 10 firms.Federal campaign disclosure records show that donations to the Emergent BioSolutions Inc. Employees PAC run the gamut. Board members and executives like Mr. El-Hibri give as much as $5,000, the maximum allowable amount per year under federal election rules. Some employees have contributed on a biweekly basis in amounts as small as $3.47. Three former employees said the company offered a payroll deduction program to make giving easier.The employee group tends to spend in small dollar amounts, typically $1,000 to $2,500 on incumbents, including lawmakers representing states where it operates, like Maryland and Michigan. Representative Steny Hoyer, Democrat of Maryland and the No. 2 Democrat in the House, was a top beneficiary in the 2020 election cycle; he and an affiliated organization received a total of $10,000.Two members of the House panel conducting Wednesday’s hearing — Representative Jim Jordan, Republican of Ohio, and Representative Jamie Raskin, Democrat of Maryland — each received $1,000 contributions over the same election cycle.In an interview, Mr. Raskin said that he had been unaware of the donation until he was contacted by a Times reporter and that he had returned the money. A spokesman for Mr. Jordan said that the congressman had raised more than $18 million during the 2020 election cycle and that contributions had no bearing on his work as a legislator.Mr. Hartwig, the Emergent spokesman, said in an email message that the PAC “supports incumbent Members of Congress of both chambers and from both parties who represent our employees and our facilities, and who are committed to preparedness and response for the next biological, chemical, or public health threat.”Sharon LaFraniere contributed reporting. More

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    Why Iowa Has Become Such a Heartbreaker for Democrats

    BURLINGTON, Iowa — Tom Courtney and Terry Davis are former factory workers in Des Moines County along the Mississippi River in eastern Iowa, two men of similar age who skipped college but thrived in a community where blue-collar jobs used to be an engine of upward mobility.In 2008, Mr. Courtney’s daughter Shawna married Mr. Davis’s son Shannon. They celebrated at a rehearsal dinner at the Drake, a steak restaurant on the riverfront in Burlington. The two men are grandparents to Shawna’s daughters from her first marriage, and they occasionally met on the sidelines of Little League games.But as economic decline and social malaise overtook Des Moines County, and Donald J. Trump was embraced by many as an answer, the two men moved in opposite directions. Today they rarely speak. Mr. Davis has become the chairman of the county Republican Party. Mr. Courtney lost his seat as a powerful Democratic state senator in 2016, then tried to win it back last year. He faced an opponent recruited by Mr. Davis.“This was a pretty blue county, but we had a lot of Democrats come over to our side,” Mr. Davis said.Mr. Courtney, who expected a close race, was stunned by the depth of his loss on election night. “As I looked around the state, there were lots of people like me,” he said.“Iowans have changed.”For decades, this state was a reliable wind vane of American politics. In six presidential elections from 1992 to 2012, its voters never deviated by more than one percentage point from the national results.Then in 2016, Mr. Trump pulled Iowa more sharply to the right than any state in the country. The trend continued in 2020, when he ran up wider margins against President Biden than he had against Hillary Clinton in most Iowa counties.Some Democrats believe there are pathways to winning back the working-class voters the party has lost here and in places like it. They point to Mr. Biden’s $2.3 trillion infrastructure plan, the subject of tense negotiations in Washington, which would bring a surge of spending on roads, bridges, child care and clean energy. In Iowa, there are more structurally deficient bridges than any state in the country. Yet, few local Democrats have such high hopes for a political realignment. “There is no short-term elixir,” said Jeff Link, a Democratic strategist in the state.Tom Courtney lost his seat as a powerful Democratic state senator in Iowa in 2016, then tried to win it back last year. Soon after the polls closed, he knew he had no chance. “Iowans have changed,” he said.Jacob Moscovitch for The New York TimesThe 2020 carnage for Iowa Democrats was wide and deep. The party lost a Senate race, gave up two congressional seats and lost half a dozen seats in the state legislature. Unified Republican rule in state government has led Gov. Kim Reynolds to sign permissive gun laws and new restrictions on voting this year, and lawmakers are moving to add a constitutional ban on abortion.Many Democrats now believe that Iowa is all but lost to the party, and that it is time to let go, a view driving a fierce debate over whether to drop the state’s presidential caucuses from their leadoff role in 2024 and beyond. Iowa is small and unrepresentative, more than 90 percent white, and the 2020 election showed that Democrats’ future is in the Sun Belt, with its racially diverse electorate and college-educated suburbanites.Other party strategists are quick to note that Mr. Biden barely won his two Sun Belt pickup states last year, Georgia and Arizona, and that the party can’t afford to bleed more of its traditional voters while making only tenuous inroads with a new constituency.What’s the matter with Iowa, and by extension much of the northern Midwest, for Democrats? Many officials say the party’s cataclysmic losses stem from the erosion in quality of life in rural places like Des Moines County and small cities like Burlington, which are a microcosm for a hollowing out that has led to sweeping political realignments in parts of Iowa, Illinois, Wisconsin, Ohio and Pennsylvania.Schools have closed, rural hospitals are cutting all but bare-bones care, and young people with college degrees have fled for opportunities in Des Moines or Chicago. Employers have backfilled jobs with immigrants, often after weakening unions and cutting pay.“There’s just a discontent, an unhappiness here seeing communities shrink,” said Patty Judge, a Democrat and former lieutenant governor of Iowa. “That makes people very vulnerable to a quick fix. Donald Trump offered that: ‘Let’s make America great again, you’ve lost your voice, let’s have a voice again.’ People have bought into that.”Angela Pforts at her shop in Burlington, Barber and Style. Jacob Moscovitch for The New York TimesMr. Courtney, who is one of eight children of a farm couple he called “strong Roosevelt Democrats,” said that most of his nieces and nephews were “Trumpers,” which confounds him. “They’re not millionaires, most of the family works for wages,” he said. “I don’t understand them.”Mr. Davis’s 95-year-old father is a Democrat. He told his son he always votes for who he thinks will do the best job. “I said, ‘Dad, have you ever voted for a Republican?’” Mr. Davis recalled. “He said, ‘Hell no!’”According to Iowa Workforce Development, a state agency, 1,700 jobs were shed statewide in 2019 outside Iowa’s major cities. It was the third loss in four years, the agency said, “and highlights a trend that is not uncommon in most of the country.”On top of economic factors, other forces forged the Trump coalition in Iowa, as they did elsewhere in places dominated by the white working class: a resentment of immigrants and people of color, and a narrowing of information sources that has pushed conservatives to radio and social media channels where lies and conspiracy theories flourish.A postal carrier in downtown Burlington. There are embers of a downtown revival, but most businesses now line Route 61 west of downtown, where big box stores and chain restaurants draw shoppers from rural towns.Jacob Moscovitch for The New York Times‘Those were my voters’On a recent sunny morning, Mr. Courtney, 73, steered his white S.U.V. around Burlington, a riverfront city with a population of 25,600, which is down by 3.5 percent since 2010. A slender figure with a mustache, silver hair and a soft-pitched voice, Mr. Courtney joined the Air Force out of high school and returned home to work at a Case backhoe plant in Burlington. He rose to become the leader of the union bargaining team before he retired and was elected to the State Senate in 2002.“When I worked there and was bargaining chair, we had 2,300 rank-and-file members,” he said as he drove near the Case plant beside the pewter-colored Mississippi. Today the shop floor is down to 350 workers.“Those were my voters,” he said, passing a nearly empty employee parking lot and a shuttered bar that was once crowded at shift changes. “The last five or six years I worked there, it was nothing to make $70,000 a year. Cars and boats — everybody had all that kind of stuff.” Today, starting wages are about $17 an hour. Burlington rose as a railroad and manufacturing center, and the stone mansions of its 19th-century barons still stand on a bluff above the river. The population peaked around 1970. Although there are embers of a downtown renewal, including a yoga studio and a brew pub, Jefferson Street, the main thoroughfare, was largely deserted on a recent weekday. Most businesses now line Route 61 west of downtown, where big box stores and chain restaurants draw shoppers from rural towns that are themselves losing their economic cores.The visitor’s entrance at the Case factory in Burlington, Iowa. Case’s backhoe plant used to have more than 3,000 employees. Now it has about 350.Jacob Moscovitch for The New York TimesMr. Courtney harks back to a golden era for local Democrats. Des Moines County — not to be confused with the state’s capital city — voted for the Democratic presidential candidate in 10 straight elections before 2016, when Mr. Trump flipped it. Before the 2008 Iowa caucuses, Mr. Courtney, who was the majority whip in the State Senate, escorted Mr. Biden, then embarking on his second bid for the presidency, to an interview with editors of The Hawk Eye. In the middle of it, Mr. Courtney’s cellphone buzzed: It was Bill Clinton, pestering him to endorse the former president’s wife. (Mr. Courtney remained neutral.)Mr. Courtney grew up in the rural town of Wapello, 25 miles north of Burlington. He recalled how in 2018 he knocked on doors there for Democrats. “I’d go into neighborhoods that when I was a kid were nice middle-income neighborhoods with nice homes,” he said. “Now today there’s old cars in the yards, there’s trash everywhere. People come to the doors who are obviously poor. Those are Trump people. We’re not reaching those people.”He could not think of a single new factory that opened in Burlington during the Trump years. To Democrats, the fact that Iowans did not punish Mr. Trump in November for failing to bring a renewal of blue-collar jobs speaks to the power of perception over reality.“It’s just this constant slide and they don’t feel like anybody’s doing anything for them, but they believe that Trump was trying,” said Mr. Link, the Democratic strategist. “More than anything, Trump resonated with them in that he was indignant and angry about the status quo, and angry about elites. They’re not getting that same perception from Democrats.”High school students hanging out in the parking lot of the abandoned Shopko in Burlington. Jacob Moscovitch for The New York TimesRepublicans on the riseIn many ways, Mr. Davis, 72, is the obverse of Mr. Courtney. Although he, too, started as a blue-collar worker, an electrician for railroads, Mr. Davis climbed the ranks of management. By the early 2000s he was the superintendent of a Burlington Northern locomotive plant. When the railroad shut down the operation, idling hundreds of union workers in Burlington, Mr. Davis helped with the downsizing. He took early retirement.Mr. Davis had promised his own driving tour of Burlington, but instead sat in his double-cab pickup with a reporter for two hours in the parking lot of a Dick’s Sporting Goods. He wore khaki work pants and a black golf pullover. He spoke in a forceful, folksy voice.Once a Democrat who voted for Bill Clinton, Mr. Davis said he became a Republican because he disagreed with Democrats on abortion and same-sex marriage, as well as what he called handouts to the undeserving.He recalled chatting at a railroad reunion with one of his former electricians who had taken a job at Case. The man told him that he, and many other union workers at the plant, had voted for Mr. Trump.Mr. Davis recalled him saying: “We pay 140 bucks a month to the union, every one of us does. They take that money and give it to a political party that gives it to people that don’t work. The more we thought about it, we thought, ‘I ain’t doing that anymore.’”The electrician added, “You’d be surprised how many of those people voted for Trump.”Terry Davis, the chair of the Des Moines County Republican Party. “This was a pretty blue county, but we had a lot of Democrats come over to our side,” he said.Jacob Moscovitch for The New York TimesLike Mr. Courtney, Mr. Davis expressed some puzzlement about why Mr. Trump had done so well despite not delivering on his promise to bring back blue-collar jobs. “It’s kind of hard to figure,” he said. Mr. Davis was born in Missouri and worked in Kansas City before being transferred to Burlington. He agreed that the quality of life in town was lackluster. “My wife — don’t take this wrong — she’s not going to buy clothes here,’’ he said. “We go to the Quad Cities or Iowa City or Chicago or St. Louis to shop and mainly to kind of get out of town.”He readily acknowledged that Mr. Biden had won the presidency. But he also said that most Republicans in Des Moines County probably believed Mr. Trump’s falsehoods about a stolen election.Democrats say that conservative talk radio, even more than Fox News, has spread conspiracy theories and disinformation to Republican voters. In places like Des Moines County, people now must drive far to see a dentist or buy a pair of shoes, and all of those hours in their cars have increased the influence of right-wing radio.“People are driving all the time, they’ve got their radios on all the time,” Mr. Courtney said. He mentioned a local station, KBUR, “which used to be a nice friendly station.” It was known for a show “to auction things off” and another that was a call-in “question and answer thing,” Mr. Courtney said. Now it broadcasts Sean Hannity for hours each afternoon.Mr. Courtney passed a shuttered middle school. “It’s just hard for me to believe that 15 years ago, we had three big thriving middle schools,” he said, “and today we’re down to nothing like that.”“Folks have left town,” he added.The now-closed Siemens factory in Burlington.Jacob Moscovitch for The New York Times‘There was a racism card’But Mr. Courtney acknowledged another reason, too: white flight to schools in West Burlington. “People will tell you it’s not, but there’s no question it is,” he said. Burlington’s population is 8.2 percent Black. Public school enrollment is 19 percent Black.Barack Obama carried Des Moines County twice, including by 18 points in 2012, before Mr. Trump flipped it. It is one of 31 Obama-Trump pivot counties in Iowa, which has more of them than any other state in the country. A study by sociologists at Iowa State University in 2019 concluded that the state’s hard pivot from Mr. Obama was not because of “economic distress.” It pointed instead to Mr. Trump’s “nativist narrative about ‘taking back America.’”The study found that the counties that gyrated most sharply away from Mr. Obama were almost entirely white.Mr. Courtney does not dispute that racism drove part of that swing, and he has his own theory of why some of the same voters had earlier backed Mr. Obama.“I think they wanted to say they voted for a Black man,” he said. After two terms with Mr. Obama in office, however, Mr. Trump’s brazen attacks on Mexicans, Muslims and other racial and religious minorities gave people permission to indulge inner grievances, Mr. Courtney said. “There was a racism card that came out and people said, ‘I’m sick of this Black guy, I want to go back to a white guy,’” he said. “I hesitate to say that, but it’s the only thing that makes sense.’’Barack Obama carried Des Moines County twice, including by 18 points in 2012, before Donald J. Trump flipped it in 2016.Jacob Moscovitch for The New York TimesThe road back in Iowa for Democrats is long and complicated. The state once prided itself on having more registered independents than Republicans or Democrats, but since 2018, in keeping with national trends toward polarization, independents now rank behind both major parties. Democrats have suffered a net loss of 120,000 registered voters compared with Republicans. Those votes alone are 10 percent of turnout in nonpresidential years.The party’s setbacks have reheated the debate over whether to cancel Iowa’s caucuses as the leadoff nominating contest. Many national Democratic officials argue that a larger and more diverse state should go before either Iowa or New Hampshire. Even some Iowa Democratic strategists have supported killing off the caucuses to focus on local issues and reduce the influence of the national progressive wing of the party.Mr. Courtney said the voters he knew didn’t care much about cultural issues that Democrats elsewhere dwell on, like gun control and immigration. “All they really want to know is where can they get a good job that pays the most money so that they can take care of their family, and we’re not touching on that,” he said.He has cautious hopes for Mr. Biden’s infrastructure proposal. “If we can put people to work making good money building that stuff, it could be like the W.P.A. back in the day,” said Mr. Courtney, whose parents worshiped Franklin D. Roosevelt’s New Deal.Even Mr. Davis, the G.O.P. chair, conceded that a robust infrastructure plan that brought jobs to Burlington would make it harder for Republicans to continue their winning streak.“It probably will be tough in four years if things are good,” he said. More