Montana
Tester advocated for Montana tech executives who donated to campaign – Washington Examiner
Executives at two technology companies met privately with Sen. Jon Tester (D-MT) and donated to his reelection campaign as he helped secure federal funding for their tech hub in Montana.
The leadership team of defense-focused artificial intelligence company Reveal Technologies and venture capital firm Next Frontier Capital, part of a consortium focused on defense technology, gave nearly $30,000 in personal donations to the Tester campaign and an affiliated joint fundraising committee, according to federal fundraising records reviewed by the Washington Examiner.
The donations, given in small increments across a two-year time frame, coincided with a series of meetings Tester held with the executives and their lobbyists as he helped Headwaters Hub, a Montana business tech consortium, receive federal accreditation and ultimately $41 million in grant money approved through the federal CHIPS and Science Act last month.
Tester has long made clear his support for the consortium. In February 2023, he held a roundtable to encourage the Biden administration to designate Headwaters as a regional tech hub and, once that designation was granted, urged officials including Commerce Secretary Gina Raimondo to award it next-phase funding.
But the donations have raised ethics concerns as Tester, the chairman of the Senate Appropriations defense subcommittee, runs for a fourth term in the Senate.
Richard Painter, a chief ethics lawyer under President George W. Bush and former Democratic House candidate, said Tester was no “different than the rest of them,” referring to other politicians who accept campaign donations from companies that stand to benefit from their advocacy.
But he called the contributions “indicative of what’s wrong with our campaign finance system.”
“I think we need to really tighten up, to say they shouldn’t be meeting with people who can make contributions at all,” Painter said. “This is the type of thing that doesn’t promote public confidence in the government.”
Tester joined other members of the Montana congressional delegation advocating the tech hub, hailing the grant as a chance to bring cutting-edge jobs to a rural state. Sen. Steve Daines (R-MT), his Republican counterpart in the Senate, also voted for the CHIPS and Science Act, lobbied for Headwaters to get funding, and claimed credit for its grant.
But Daines did not receive campaign donations from Reveal or Next Frontier; neither did any other member of the Montana delegation besides Tester, outside of a one-time $50 contribution Reveal made to Rep. Ryan Zinke (R-MT) in 2022.
“Sen. Tester worked with Republicans and Democrats to pass bipartisan legislation that will help America outcompete China and allow a rural state like Montana to lead the nation in critical technological innovation,” a Tester spokesperson told the Washington Examiner. “He is proud to have worked with Republicans like Sen. Steve Daines on this bipartisan bill to bring good-paying jobs back to the United States, secure our domestic supply chains, and develop next-generation technology right at home in the Treasure State.”
Tester’s office did not address questions about whether he was aware of the donations from Reveal Technologies and Next Frontier Capital. The spokesperson noted he “played no direct role” in which companies were chosen for the Headwaters Hub, while his campaign declined to comment and directed the Washington Examiner to his Senate office.
Tester’s relationship with Reveal extends back to at least March 2022, when Tester held a call with Reveal CEO Garrett Smith. Smith began donating to Tester a month later with a $1,000 contribution to his campaign.
Over the next year, from July 2022 to July 2023, Smith made periodic donations to Tester’s campaign totaling $3,550. On at least two occasions around the same period, in March and August 2023, Tester issued public press releases urging the Biden administration to select Montana to create the tech hub consortium that would become Headwaters.
In October 2023, the tech hub was ultimately awarded $500,000 in funds to establish itself.
Most of the meetings, listed on Tester’s public schedule, occurred after the creation of Headwaters, while the majority of the donations from executives began this year.
In January, Tester met with Smith, Reveal Director of Business Development Dave Caudle, and registered Reveal lobbyist Dan Sennott. Later that same month, Next Frontier founder and General Partner Will Price became his company’s first executive to donate to Tester’s reelection with a $500 contribution.
Headwaters submitted its grant application for $75 million in February. That same day, Tester publicly called for the administration to select them.
From March until the $41 million was granted to Headwaters on July 2, Smith, Caudle, and other Reveal executives, including Chief Operating Officer Andrew Dixon and Chief Product Officer John Laxson, contributed another combined $11,650 to Tester or his affiliated joint fundraising committee.
Over the same period, Next Frontier leadership gave $13,200 by way of three contributions from Richard Harjes, another founder and general partner.
All of the men extended donations in the days and weeks leading up to a June 24 meeting between Reveal, Next Frontier, and Tester that included representatives from the Air Force and Space Force. One of the donations occurred on the same day as the meeting.
The donations, in aggregate, are small compared to the tens of millions of dollars raised by the Tester campaign. But Painter said the donations present a possible conflict of interest and could be construed as an attempt to gain access to the senator.
“They want someone in Washington, and they give money, and then they get meetings, and then whatever happens, happens,” he said.
It’s unclear if or how much Reveal and Next Frontier stand to gain from the grant, or how the funds will be divided among the 27 companies, associations, or public higher-education schools that comprise Headwaters. A breakdown was neither provided in the group’s funding application nor in its award.
Headwaters did not respond to a request for comment by press time.
Not all of the companies stand to receive the funding, according to other company members of Headwaters. Nonetheless, Reveal was referenced in Headwaters’s grant bid, touting the company’s “innovations in Intelligence, Surveillance, and Reconnaissance (ISR) remote sensing technology, as reflected by Reveal Technologies’ rapid growth.”
Smith, its CEO, also thanked elected officials for helping secure the award in a press release on the day of the grant’s announcement.
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Reveal declined to comment about its donations and meetings with Tester, in addition to how much of the grant it expects to receive. Next Frontier did not respond to requests for comment.
Headwaters was one of 12 consortiums selected to receive additional funding out of the 31 regional hubs established across the country.
Montana
University of Montana president job draws high interest • Daily Montanan
The search for a new University of Montana president has drawn more than 60 applicants, according to a spokesperson for the Office of the Commissioner of Higher Education.
“We do not have an exact count at this time, as several applications are still being completed and additional submissions are expected,” said spokesperson and Deputy Commissioner Galen Hollenbaugh in an email earlier this week.
In January, then-UM-President Seth Bodnar announced his resignation to pursue other public service. Wednesday, the final day of filing, he announced he was running as an independent for the U.S. Senate to try to unseat Republican incumbent Steve Daines.
Commissioner of Higher Education Clayton Christian earlier said that with the advice of AGB Search, a firm that’s helped the Montana University System conduct other executive searches, he would undertake an expedited process to appoint a new president.
Christian has been providing brief updates on a website dedicated to the search. Last week, he said he and AGB Search are reviewing applications, and the pool of candidates was “strong and diverse.”
The commissioner also announced he was convening a small working group to assist in the search, members who “represent a variety of perspectives to assist in vetting and narrowing this field of exceptional candidates.”
In an email this week, Hollenbaugh identified the members of the working group who are assisting Christian with application review as:
- Community member and former Regent Joyce Dombrouski
- Faculty Senate Chairperson Valerie Moody
- Staff Senate President Dominic Beccari
- Administration Representative John DeBoer (Vice President of Academic Affairs)
- ASUM (Associated Students of the University of Montana) President Buddy Wilson
Hollenbaugh declined to comment on the way the rest of the process would unfold or the role the working group members would play.
Christian earlier said he anticipated an appointment within one to three months, or as soon as early this month.
Montana
Montana Supreme Court allows ballot measure on initiative process to move forward
HELENA — The Montana Supreme Court has ruled in favor of a proposed ballot measure intended to simplify the process for introducing ballot measures in the future.
Justices ruled 5-2 that the measure, currently called Ballot Issue #8, did not violate state requirements that a single constitutional amendment can’t make multiple separate changes to the Montana Constitution.
“We’re very grateful to the Montana Supreme Court for agreeing with us that the attorney general’s finding of legal insufficiency for Ballot Issue #8 was incorrect,” said SK Rossi, a spokesperson for Montanans Decide, the group sponsoring the measure.
Montanans Decide argues the Montana Legislature has passed laws making it harder for the public to propose and pass ballot issues. The Montana Constitution already guarantees the people the right to pass laws and amendments through ballot measures, but Ballot Issue #8 would expand that to include a right to “impartial, predictable, transparent, and expeditious processes” for proposing those measures. It would seek to prevent “interference from the government or the use of government resources to support or oppose the ballot issue.”
Attorney General Austin Knudsen’s office argued the measure “implicitly amended” multiple provisions in the state constitution, including by limiting the “power and authority of public officials to speak officially on ballot issues that affect those officials’ public duties” and by putting restrictions on judges and on the Legislature. Montanans Decide, the group sponsoring Ballot Issue #8, disagreed – and the majority of justices sided with them.
“Its provisions operate together to define and protect a single constitutional right—the people’s exercise of initiative and referendum,” wrote Justice Katherine Bidegaray in the majority opinion. “They are closely related components of one constitutional design.”
Bidegaray’s majority opinion was joined by Justices Jim Shea, Laurie McKinnon, Beth Baker and Ingrid Gustafson.
Chief Justice Cory Swanson and Justice Jim Rice each wrote dissenting opinions, saying they would have upheld Knudsen’s decision to disallow Ballot Issue #8. Rice said the language restricting government interference with a ballot issue was not closely related and should have been a separate vote. Swanson agreed with Rice and said the measure’s attempt to fix a timeline for legal cases surrounding ballot measures was also a separate substantial change.
In a statement, Chase Scheuer, a spokesperson for Knudsen’s office, reacted to the decision.
“This decision only further muddies the courts’ jurisprudence on ballot issue questions,” he said. “This initiative would violate the separate vote requirement by amending multiple parts of the Montana Constitution, but the court contradicted its prior rulings. Attorney General Knudsen will continue to neutrally apply the separate vote requirement in his review of ballot initiatives.”
The court’s decision means that Knudsen’s office will now need to approve ballot language for Ballot Issue #8. Once that language is finalized, Montanans Decide could begin gathering signatures to qualify the measure for the November ballot.
However, last year, sponsors of another initiative went to the Supreme Court to argue that the ballot statements Knudsen prepared were misleading. If Montanans Decide object to their ballot statements, that could further delay signature gathering while the case plays out in court.
“Regardless, we’re going to push as hard as we can to get those petitions into the hands of voters and let them sign and support if they so choose,” said Rossi.
Rossi said the legal battle this measure has gone through – and the possibility of more to come – shows why Ballot Issue #8 is needed.
“The state Legislature, and also statewide elected officials, have taken every opportunity to create burdens and hurdles and rigamarole for campaigns to get through in order to just get to the signature gathering phase, and then to get through the signature gathering phase onto the ballot, and then get through the election phase,” said Rossi. “The reason we filed this initiative is just to make sure that the process is simple, that the timeline is clear, and that Montanans can have their will heard when they want to propose and pass laws that they deem worthy.”
Montana
Christi Jacobsen enters race for Western House seat
HELENA, Mont. — Montana Secretary of State Christi Jacobsen is running for Montana’s Western Congressional District seat, entering the race a day after U.S. Rep. Ryan Zinke announced he would not seek reelection.
Jacobsen’s announcement sets up a new contest for the open seat after Zinke, a Republican, said he would seek reelection.
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“As your Secretary of State, I’ve stood up to Washington overreach, defended election integrity, and delivered real results for Montanans. In 2020, voters gave me a mandate to clean up our elections, grow Montana business, and push back against radical liberal special interests. I delivered. Now it’s time to take that same results-driven, America First leadership to Congress.”
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