Groups see their standing on the Hill at stake with the rise of voices like Ted Cruz. Business looks to challenge tea party

Business groups frustrated with some Republicans holding their agendas hostage and putting the financial credibility of the country at risk are vowing to play a role in GOP primaries.

But despite the public grousing and aggressive posture of top executives and Washington operatives, there’s little evidence that trade associations and other business-minded groups will actually be able to move the needle in the 2014 election.


“The Senate Conservatives Fund, Heritage Action and FreedomWorks are really just eating the lunch of some of the normal business groups,” said Dan Mattoon, former executive director of the National Republican Congressional Committee.

The problem for the business lobby is the stakes couldn’t be higher: Its future power and whether it will be able to regain its standing as one of the drivers of legislation and priorities on Capitol Hill are at stake as new conservative groups have considerably more sway with members like Sen. Ted Cruz (R-Texas) and a large number of House Republican lawmakers who have dominated the political process this year.

( WATCH: Cruz says Senate GOP ‘most damaging’ to 2014)

While many heads of trade groups have been trying to navigate the new political reality in Washington, in some ways they are ill-equipped to battle more recently formed groups like Heritage Action For America and Senate Conservatives Fund that are focused on making Congress more conservative and holding Republican lawmakers accountable by ginning up the grass roots.

“Fundamentally, if the business community wants to be more engaged in the grass-roots politics, they have to have a permanent presence there,” Heritage Action’s Dan Holler said. “Arguably, there are local businesses at every level. They could be the conduit for that message. The problem is the policies big business groups are trying to sell don’t resonate outside of Washington.”

The business lobby, taking a more aggressive tack, is also at odds with its risk-averse nature and the fact that many organizations have policies that prohibit their political arms from supporting nonincumbents in primaries. Those factors, and others, make it hard to see how they could create an army that could take out some of the Republican lawmakers they hold responsible for the recent 16-day government shutdown and near default on the country’s debt.

( PHOTOS: Government reopens after shutdown)

At the same time, the usual “political carrots,” like endorsements and throwing fundraisers, have also become less effective ways of trying to persuade Republican true believers in the House because they pride themselves on being anti-establishment and don’t necessarily want Speaker John Boehner (R-Ohio) to rev up his powerful fundraising machine on their behalf.

“The playing field has been leveled by some of these outside groups who are providing fundraising and organizational might to members or candidates who previously relied more heavily on committees or leadership for those functions,” said Kevin Madden of JDA Frontline.

But Big Business isn’t going down without a fight.

Discussions over whether to get involved in more primaries have been happening at the most senior levels inside groups like the U.S. Chamber of Commerce since this summer, but many operatives say the shutdown and expectation for continued funding fights this winter have increased the need for groups to get more involved.

“While the elections game has changed and the political world has changed, business has not yet adapted to the new realities,” said Bruce Mehlman of Mehlman Vogel Castagnetti. “The GOP is witnessing a civil war for its soul between Jacksonian populists skeptical of business and Reagan Republicans looking to partner in pursuit of principled progress. If business does not engage in an aggressive new way in support of the Reaganites in GOP primaries, it will soon find itself without educated allies or reliable champions.”

Advocates of pushing the primary envelope are looking largely to the Chamber of Commerce to lead the charge. The business group has long had one of the most active political operations in Washington and also is used to soliciting big checks from its members.

One source familiar with the Chamber said getting into primaries is a “priority” because one of the things motivating a lot of members is the fear of a primary.

Chamber President Thomas Donohue “is all in,” the source said.

While the Chamber has said it will get involved in primaries this cycle, it actually has done so in the past. For example, it supported John E. Sununu in his successul Senate primary bid against then-Sen. Bob Smith. It also strongly supported Jim DeMint, whom many blame for the rise of the current political environment in Washington, in his primary and general election bids to gain the South Carolina Senate seat. Chamber spokeswoman Blair Latoff said the specifics of the group’s primary strategy will be determined when its public affairs committee meets next year.

The National Retail Federation is also considering its options.

“I think there are folks who are active with the tea party who are not concerned about the consequences of certain tactical choices and that’s frustrating because there are some tactical choices that have been made that have consequences and we all have to live with them,” French said.

NRF is “taking a closer look at multi-field primaries” and trying to assess which candidates “may not be the best pro-business candidate,” according to French.

Not all groups are looking to change their political giving strategy. Credit Union National Association, which boasts one of the largest business PACs, is sticking with its traditional tactics.

“I don’t see anything changing. We’re doing the same thing we’ve always been doing,” said Richard Gose, senior vice president of CUNA’s political affairs, noting that CUNA supports candidates that are pro-credit union on both sides of the aisle.

Still, Gose said there will be more activity in primaries — though not just because some groups are frustrated with Washington.

“That’s the only game in town,” Gose said. “It’s the natural flow of where things are going.”

Others, like the American Banking Association, say they haven’t yet determined their strategy on primaries.

“I know there are groups out there exploring those options, but we’re not at that point yet,” said Jeff Sigmund of the ABA. The ABA, which has a joint PAC with its state bankers associations, has one of the largest PACs. Sigmund said all decisions are made jointly about open seats.

“Obviously, the states play a substantial role in that,” Sigmund said.

And while some are looking to punish some lawmakers — others in the business community are focused on supporting members who they believe are doing the right thing.

National Beer Wholesalers Association President Craig Purser said his trade association wants to focus on “helping provide incentive and cover for those folks who have been trying to facilitate” good policy.

“I just think it’s time for a timeout and everybody take a deep breath and approach this with a little bit more focus on civility, getting things done,” Purser said.