Government Corruption Watch, Part I

I realize that the "Taxpayers vs. Bureaucrats" series is rather depressing, with only two tiny pieces of good news out of 18 installments, so I'm almost reluctant to unveil a new series. But odious and corrupt deal-making is a fundamental - and probably unavoidable - feature of government, and we need to shine a spotlight on the way government really works. This is especially important since the bigger the government, the more rampant the sleaze. Our first post in the series highlights a Wall Street Journal column exposing how one Congressman is funneling some of the loot from a new government monopoly to a campaign contributor:

President Obama and Congressional Democrats have been criticized for being antibusiness. But Washington is about to bestow a huge gift upon one particular type of business—the type that doesn't pay taxes. Despite bipartisan opposition, this week the Democrats hope to use budget reconciliation in the Senate to ram through changes to the health-care bill the House passed on Sunday. Coming along for the legislative ride is a federal takeover of the student-loan market. ...All such loans will now come directly from the U.S. Department of Education. ...But while Democrats are eliminating a revenue stream at for-profit companies, they are simultaneously creating another one for a handful of favored nonprofit companies. Currently, for loans that the government makes directly to students, the Department of Education conducts competitive bidding and hires private companies to service the loans. But in the pending bill, several dozen nonprofit firms will be eligible to receive no-bid servicing contracts on up to 100,000 student accounts for each firm. Which nonprofit organizations will qualify? California's ALL Student Loan looks to be a big winner, thanks to language written by Representative George Miller of California. ALL Student Loan may have helped its cause by retaining the services of Vincent Reusing, a lobbyist whom the Chronicle of Higher Education has described as a "personal friend" of Mr. Miller. ...According to OpenSecrets.org, Mr. Reusing has contributed more than $80,000 to various Democratic campaigns, including Mr. Miller's.