Which Industry Spends the Most on Lobbying?

In the U.S. political system, lobbying is par for the course. Like other interest groups, major industries and leading corporations seek to influence lawmakers. For businesses, this means presenting their case to ensure that any legislation and regulations that are passed are as favorable as possible to the bottom line.

Corporate political activity can take the form of campaign contributions, but companies and industries also employ lobbyists to make their views known to lawmakers and regulators. 

Here, using data from opensecrets.org, we break down lobbying efforts, industry by industry, from 1998 to 2023. Figures are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. 

Let's take a closer look at how much each industry spends on lobbying, the top corporate spenders in each category, and what spurs their lobbying efforts. 

Pharmaceuticals/Health Products: $5,834,580,000

Spending more than $5.83 billion from 1998 to 2023, the pharmaceutical and health products industry has far outpaced all others in lobbying spending. The industry spent a record $379.44 million on lobbying in 2022, compared to $275.11 million in 2009 amid debates about the Affordable Care Act (ACA).

This includes spending on behalf of drug manufacturers as well as sellers of medical products and nutritional and dietary supplements. The main drugmakers' lobbying group, Pharmaceutical Research and Manufacturers of America, remained the biggest spender within the healthcare sector in 2023 with outlays of $27.6 million.

The pharmaceutical/health industry is also a top spender in political campaigns, with contributions reaching a total of $89.09 million in 2020. This was a 170% increase from a decade earlier. The industry's top lobbying priorities over the past few years included:

• Opposition to H.R. 3 (a bill allowing the government to negotiate and cap drug prices, which served as a blueprint for drug pricing provisions in the Inflation Reduction Act)
• The COVID-19 vaccination effort
• Resisting government-run healthcare

Insurance: $3,566,660,000

The insurance industry includes the health, property, and auto insurance companies along with agents and brokers. It has historically mounted a lobbying effort second only to that of drugmakers and other healthcare product providers.

From 1998 to 2023, the insurance industry spent nearly $3.57 billion on lobbying. Health insurance companies have occasionally fought over healthcare legislation against drugmakers, hospitals, and other healthcare providers, with each group blaming others for fast-rising costs. In 2023, Blue Cross/Blue Shield led industry lobbying efforts with spending of $20.3 million. It was followed by America's Health Insurance Plans with $13.06 million in outlays.

In the 2020 election cycle, individuals and political action committees (PACs) aligned with the insurance industry made a total of $120 million in contributions to federal political campaigns. In early 2022, that health insurers' group opposed legislation cracking down on the industry's frequent rejections of mental health and addiction treatment claims.

Electronics Manufacturing and Equipment: $3,323,370,000

This category includes many of the largest software, computer hardware, and semiconductor suppliers. While the sector trails electric utilities slightly in political spending since 1998, it outspends them with lobbying costs, spending over $3.32 billion from 1998 to 2023. Oracle Corp. (ORCL) led with spending of $12.14 million in 2023, followed by Microsoft Corp. (MSFT) at $10.16 million.

With the technology sector's growing profitability, tech companies' political contributions have increased. Its donations nearly doubled from 1994 to 1996, passing $10 million in the mid-1990s. By the 2020 election cycle, political contributions had reached $209.2 million.

The giving and spending has been relatively bipartisan, typically slightly favoring the party in control of the White House. Tech companies have focused their lobbying on issues of relatively narrow interest, with Oracle engaged on labor, defense, IT, and copyright legislation while Microsoft has weighed in on telecom issues, trade, taxes, and immigration.

Electric Utilities: $3,047,300,000

Utilities are a highly regulated industry with service rates that must be approved by state utility commissions. These companies have a high stake in federal environmental and climate legislation, so heavy lobbying has long been key to the business model. They are particularly interested in legislation that impacts:

• Regulation of pollution and carbon emissions
• Waste storage
• Cybersecurity
• Infrastructure

The electric utilities industry spent $3.047 billion on lobbying from 1998 to 2023, including $126.86 million in 2023 alone. Utility association Edison Electric Institute the top spending organization at $11.47 million in 2023.

Business Associations: $2,926,610,000

This grouping includes associations for small business, big business, and international trade, as well as chambers of commerce. Business associations, which have gone from Republican-leaning to overwhelmingly Republican in recent years, spent $2.926 billion on lobbying from 1998 to 2023. From 2021 to 2023 alone, these groups spent over $374 million.

Business associations lobby on issues such as:

• Labor laws
• Intellectual property
• Product safety
• Corporate taxes

The group, which represents 3 million businesses and is funded by some of the largest U.S. corporations, has made tort reform limiting plaintiffs' rights and civil damage awards its top priority. Another key issue is corporate tax reform, including taxation of U.S. subsidiaries of foreign companies.

Oil and Gas: $2,791,230,000

The oil and gas industry has historically supported legislators from fossil fuel states who share its views on the importance of cutting taxes and regulations. Since 2021, the industry has been engaged in a debate about who is to blame for high energy prices, arguing that over-regulation is to blame rather than companies' refusal to invest in increased output.

The industry spent $128.69 million on lobbying in 2023, with Occidental Petroleum's Corp.'s (OXY) spending the most at $12.217 million. Well-known lobbyists Koch Industries was the fourth-highest spender in oil and gas lobbying, spending a total of $7.78 million in 2023.

However, Koch Industries is the highest spender in oil and gas campaign contributions. By February 2024, Koch Industries had already spent more than $27 million in political donations in the 2024 election cycle. The second-highest spender in oil and gas campaign contributions, Crownquest Operating, contributed just over $5 million in that same time.

Hospitals/Nursing Homes: $2,326,430,000

This category includes all healthcare institutions: hospitals, nursing homes, hospice providers, and drug and alcohol inpatient centers. The industry has tended to favor Democrats, joining them in pushing for expanded Medicare and Medicaid coverage, though hospitals opposed the Medicare for All plan. The industry has benefited from generous treatment in COVID-19 pandemic relief legislation, while rejecting blame for surprise medical bills.

Healthcare institutions spent over $2.3 billion on lobbying from 1998 to 2023. More than $131 million of that amount was spent in 2023, with the American Hospital Association by far the largest spender at $30.238 million. The industry's highest level of campaign contributions was in 2020 when donations reached $111 million. 

Miscellaneous Manufacturing and Distributing: $2,315,120,000

This category includes leading industrials like Honeywell International Inc. (HON) and General Electric Company (GE), along with top consumer companies including Procter & Gamble (PG) and Nike Inc. (NKE). Its lobbying interests reflect this diversity, while contributions consistently favor Republicans.

The companies and industry associations grouped here spent $119.68 million on lobbying in 2023, led by the National Association of Manufacturers with $12.01 million. From 1998 to 2023, this industry spent a total of $2.315 billion on lobbying.

The Bottom Line

Lobbying is a way for industries and companies to influence legislation in their favor. It is a big part of the U.S. political system, with many industry associations and corporations contributing to the campaigns of politicians and political parties looking after their interests.

From 1998 to 2023, the industry that spent the most on lobbying efforts was the pharmaceutical and health products industry, reaching a total of over $5.83 billion. Other top spenders include insurance, electric utilities, electronics manufacturing, business associations, oil and gas, and hospitals.