Crossroads Grassroots Policy Strategies is a right-of-center advocacy group that partners with the 527 political action committee (PAC) American Crossroads. Both organizations were founded by Republican Party operatives Karl Rove and Ed Gillespie. 1 2 The two organizations combined spent about $175 million trying to influence the 2012 election in favor of Republican Party candidates. 3
Steven Law, former chief of staff to Senate Republican Leader Mitch McConnell (R-KY), formerly led Crossroads GPS. 4 5 Legal battles involving Crossroads GPS led the Federal Elections Commission (FEC) to adopt new policies on financial disclosure. 6 The organization’s size and influence dwindled by 2017, as Rove pivoted to focusing on a new organization called One Nation, which shared office space with Crossroads GPS. 7
Background
Crossroads Grassroots Policy Strategies, better known as Crossroad GPS, is a conservative policy advocacy organization established in June 2010. It is a 501(c)(4) established to work with the 527 political action committee (PAC) American Crossroads founded by Republican Party operatives Karl Rove, a former senior White House advisor for President George W. Bush, and former Republican National Committee chairman Ed Gillespie. 8 9
Steven Law worked as the president of Crossroads GPS. 10 Law is a former chief of staff to Senate Republican Leader Mitch McConnell (R-KY). 11
After raising and spending millions in previous election cycles, Crossroads GPS raised only $75,000 in 2017. Most of Rove’s interests at that point was moved to a new organization he helped establish called One Nation. 12
Crossroads GPS, American Crossroads, One Nation, and the Senate Leadership Fund shared the same Washington, D.C. office space, according to Open Secrets. Law ran each of the organizations. 13
Advocacy Issues
Crossroads GPS, while active, called for repealing and replacing the Affordable Care Act, better known as Obamacare. 14 It proposed enabling tax-free medical savings accounts, permitting the purchase of insurance across state lines, allowing small businesses and workers to pool risks, and increasing transparency in prices and outcomes. 15
Crossroads also promoted tax reform to include lowering rates and cutting certain loopholes. 16 The organization says it focused on blocking tax increases during the Obama administration. 17
The organization backed more oil and gas drilling to make the United States more energy independent. 18 The organization criticized then-President Barack Obama for reducing drilling permits on federal land. 19
It further advocated for action to try to control the national debt. The organization supported the 2011 Budget Control Act that called for reductions in discretionary spending. The organization also says it supported building public pressure to fix the entitlement system and impose tough—yet unspecified– spending controls. 20 The organization ran a $7 million ad in 2012 attacking then-President Obama for deficit spending and adding the $4 billion per day to the debt. 21
Crossroads GPS also supported immigration policy changes that included a path for illegal immigrants to gain legal status, but at the same time increases border security. In 2013, Crossroads GPS launched a $100,000 ad campaign backing an immigration bill, with the names of 53 business and Republican leaders. 22 The group claimed the immigration proposal was responsible “in the face of reckless talk from both extremes on both sides of the issue.” 23
Legal Controversies
Although it once had a formal office in Virginia, Crossroads GPS never registered as a charitable organization with the Virginia Office of Charitable and Regulatory Programs. The left-wing publication ThinkProgress first reported in late 2012, followed by other media outlets. 24
In 2013, Crossroads GPS alleged that it was among the conservative organizations unfairly targeted by the Internal Revenue Service (IRS) with extra scrutiny during the Obama administration. The IRS allegedly targeted certain groups with words that included “tea party” or “patriot” in the name that were seeking tax exempt status. 25
The IRS first gave tax-exempt status to the Crossroads GPS in early 2016, as a 501(c)(4) organization, which means it can raise unlimited amounts of money and spend directly on political activity as long as a majority is not spent directly on campaigns. Such organizations are not required to disclose donors publicly. 26
During a fundraising event in 2012, Karl Rove told an audience that one donor contributed $3 million to the group for the purpose of supporting U.S. Senate candidate Josh Mandel (R-OH). The left-of-center group Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the Federal Elections Commission (FEC) and a letter to the Federal Bureau of Investigation (FBI) alleging the organization violated the law. Although the law does not require a 501(c)(4) to disclose its donors, a group is required to disclose to the FEC if a contribution is earmarked for a certain candidate, CREW argued. 27
According to Open Secrets (published by Center for Responsive Politics), it was the CREW matter and other legal battles surrounding Crossroads GPS that eventually led to new guidance from the FEC in 2018 requiring groups that spend more than $250 on independent expenditures that explicitly advocate for or against a candidate must report every donor who gave $200 or more for “political purposes” in a given year. 28
Funding
Even before gaining tax-exempt status, Crossroads GPS spent most of its $330 million in reported expenditures on political activity. 29
One of the largest donors to the group was Dallas billionaire Harold Simmons, who gave $7 million both Crossroads GPS and American Crossroads, Politico reported in 2012. 30
Another Dallas billionaire, Harlan Crow, contributed $500,000 to the organization. 31
The highest point for the group’s political spending came during the 2012 election. Crossroads GPS and American Crossroads combined spent about $175 million trying to influence the 2012 election in favor of Republican candidates. 32
Crossroads GPS spent $70.9 million on 28 general election candidate in the 2012 election cycle. Of that, $62.8 million was spent opposing Democrats and $7 million was spent in favor of Republicans. Of those funds, 14.43 percent was spent on winning candidates. 33
The supported candidates included spending $6.6 million for Republican presidential nominee Mitt Romney, who lost to incumbent Democratic President Barack Obama, whom Crossroads GPS spent $15.3 million to attempt to defeat. Outside the presidential race, Crossroads GPS spent the most money—$10.5 million—to unsuccessfully oppose the election of Democrat Tim Kaine to the U.S. Senate from Virginia. 34
Crossroads GPS said that the ratio for social welfare spending to political spending was 60.2 percent to 38.8 percent in 2012. 35
In 2014, Crossroads GPS spent $26 million on political matters, mostly for U.S. Senate races. 36
References
- “Crossroads Grassroots Policy Strategies.” Ballotpedia. Accessed May 19, 2023. https://ballotpedia.org/Crossroads_GPS
- Gold, Matea. “IRS approves tax-exempt status of Crossroads GPS after more than five years.” The Washington Post. February 9, 2016. Accessed May 19, 2023. https://www.washingtonpost.com/news/post-politics/wp/2016/02/09/irs-approves-tax-exempt-status-of-crossroads-gps-after-more-than-five-years/
- Bykowicz, Julie. “IRS grants long-delayed tax-exempt status to Crossroads GPS.” Associated Press. February 9, 2016. Accessed May 20, 2023. https://apnews.com/article/11dbd094dadf4cd985f549612a7473d2
- Gold, Matea. “IRS approves tax-exempt status of Crossroads GPS after more than five years.” The Washington Post. February 9, 2016. Accessed May 19, 2023. https://www.washingtonpost.com/news/post-politics/wp/2016/02/09/irs-approves-tax-exempt-status-of-crossroads-gps-after-more-than-five-years/
- Massoglia, Anna and Evers-Hillstrom, Karl. “Karl Rove’s Crossroads GPS is dead, long live his multi-million dollar ‘dark money’ operation.” Open Secrets. November 16, 2018. Accessed May 20, 2023. https://www.opensecrets.org/news/2018/11/karl-rove-crossroads-gps-is-dead-long-live-dark-money-operation/
- Massoglia, Anna and Evers-Hillstrom, Karl. “Karl Rove’s Crossroads GPS is dead, long live his multi-million dollar ‘dark money’ operation.” Open Secrets. November 16, 2018. Accessed May 20, 2023. https://www.opensecrets.org/news/2018/11/karl-rove-crossroads-gps-is-dead-long-live-dark-money-operation/
- Massoglia, Anna and Evers-Hillstrom, Karl. “Karl Rove’s Crossroads GPS is dead, long live his multi-million dollar ‘dark money’ operation.” Open Secrets. November 16, 2018. Accessed May 20, 2023. https://www.opensecrets.org/news/2018/11/karl-rove-crossroads-gps-is-dead-long-live-dark-money-operation/
- “Crossroads Grassroots Policy Strategies.” Ballotpedia. Accessed May 19, 2023. https://ballotpedia.org/Crossroads_GPS
- Gold, Matea. “IRS approves tax-exempt status of Crossroads GPS after more than five years.” The Washington Post. February 9, 2016. Accessed May 19, 2023. https://www.washingtonpost.com/news/post-politics/wp/2016/02/09/irs-approves-tax-exempt-status-of-crossroads-gps-after-more-than-five-years/
- Gold, Matea. “IRS approves tax-exempt status of Crossroads GPS after more than five years.” The Washington Post. February 9, 2016. Accessed May 19, 2023. https://www.washingtonpost.com/news/post-politics/wp/2016/02/09/irs-approves-tax-exempt-status-of-crossroads-gps-after-more-than-five-years/
- Massoglia, Anna and Evers-Hillstrom, Karl. “Karl Rove’s Crossroads GPS is dead, long live his multi-million dollar ‘dark money’ operation.” Open Secrets. November 16, 2018. Accessed May 20, 2023. https://www.opensecrets.org/news/2018/11/karl-rove-crossroads-gps-is-dead-long-live-dark-money-operation/
- Massoglia, Anna and Evers-Hillstrom, Karl. “Karl Rove’s Crossroads GPS is dead, long live his multi-million dollar ‘dark money’ operation.” Open Secrets. November 16, 2018. Accessed May 20, 2023. https://www.opensecrets.org/news/2018/11/karl-rove-crossroads-gps-is-dead-long-live-dark-money-operation/
- Massoglia, Anna and Evers-Hillstrom, Karl. “Karl Rove’s Crossroads GPS is dead, long live his multi-million dollar ‘dark money’ operation.” Open Secrets. November 16, 2018. Accessed May 20, 2023. https://www.opensecrets.org/news/2018/11/karl-rove-crossroads-gps-is-dead-long-live-dark-money-operation/
- “Issues.” Crossroads GPS. Accessed May 19, 2023. https://www.crossroadsgps.org/issues/
- “Obamacare.” Crossroads GPS. Accessed May 22, 2023. https://www.crossroadsgps.org/1745-2/
- “Issues.” Crossroads GPS. Accessed May 19, 2023. https://www.crossroadsgps.org/issues/
- “Issues.” Crossroads GPS. Accessed May 19, 2023. https://www.crossroadsgps.org/issues/
- “Issues.” Crossroads GPS. Accessed May 19, 2023. https://www.crossroadsgps.org/issues/
- Bowers, Becky. “Crossroads GPS says oil “production’s down where Obama’s in charge.” PolitiFact. April 13, 2012. Accessed May 22, 2023. https://www.politifact.com/factchecks/2012/apr/13/crossroads-gps/crossroads-gps-ad-oil-production-obama/
- “Issues.” Crossroads GPS. Accessed May 19, 2023. https://www.crossroadsgps.org/issues/
- Schultheis, Emily. “Crossroads ad hits Obama on national debt.” Politico. June 5, 2012. Accessed May 22, 2023. https://www.politico.com/blogs/burns-haberman/2012/06/crossroads-ad-hits-obama-on-national-debt-125298
- Moody, Chris. “ Karl Rove-backed Crossroads GPS runs pro-immigration overhaul ad.” Yahoo News. June 10, 2013. Accessed May 22, 2023. https://www.yahoo.com/news/blogs/ticket/karl-rove-backed-crossroads-gps-runs-pro-immigration-145420109.html
- “Issues.” Crossroads GPS. Accessed May 19, 2023. https://www.crossroadsgps.org/issues/
- McDuffee, Allen. “Is Karl Rove’s Crossroads GPS legal?” The Washington Post. November 15, 2012. Accessed May 20, 2023. https://www.washingtonpost.com/blogs/thinktanked/wp/2012/11/15/is-karl-roves-crossroads-gps-legal/
- Gold, Matea. “IRS approves tax-exempt status of Crossroads GPS after more than five years.” The Washington Post. February 9, 2016. Accessed May 19, 2023. https://www.washingtonpost.com/news/post-politics/wp/2016/02/09/irs-approves-tax-exempt-status-of-crossroads-gps-after-more-than-five-years/
- Gold, Matea. “IRS approves tax-exempt status of Crossroads GPS after more than five years.” The Washington Post. February 9, 2016. Accessed May 19, 2023. https://www.washingtonpost.com/news/post-politics/wp/2016/02/09/irs-approves-tax-exempt-status-of-crossroads-gps-after-more-than-five-years/
- Farnam, T.W. “Watchdog group files FEC complaint against Crossroads GPS.” The Washington Post. November 15, 2012. Accessed May 20, 2023. https://www.washingtonpost.com/politics/watchdog-group-files-fec-complaint-against-crossroads-gps/2012/11/15/9bab8f02-2f5f-11e2-a30e-5ca76eeec857_story.html
- Massoglia, Anna and Evers-Hillstrom, Karl. “Karl Rove’s Crossroads GPS is dead, long live his multi-million dollar ‘dark money’ operation.” Open Secrets. November 16, 2018. Accessed May 20, 2023. https://www.opensecrets.org/news/2018/11/karl-rove-crossroads-gps-is-dead-long-live-dark-money-operation/
- Vogel, Kenneth. “Karl Rove group wins IRS tax exemption.” Politico. February 9, 2016. Accessed May 19, 2023. https://www.politico.com/story/2016/02/crossroads-gps-irs-tax-exempt-219005
- Vogel, Kenneth. “Billionaire gave Rove groups $7M.” Politico. January 31, 2012. Accessed May 19, 2023. https://www.politico.com/story/2012/01/billionaire-gives-rove-7-million-072272
- Vogel, Kenneth. “Billionaire gave Rove groups $7M.” Politico. January 31, 2012. Accessed May 19, 2023. https://www.politico.com/story/2012/01/billionaire-gives-rove-7-million-072272
- Bykowicz, Julie. “IRS grants long-delayed tax-exempt status to Crossroads GPS.” Associated Press. February 9, 2016. Accessed May 20, 2023. https://apnews.com/article/11dbd094dadf4cd985f549612a7473d2
- “Crossroads Grassroots Policy Strategies.” Ballotpedia. Accessed May 19, 2023. https://ballotpedia.org/Crossroads_GPS
- “Crossroads Grassroots Policy Strategies.” Ballotpedia. Accessed May 19, 2023. https://ballotpedia.org/Crossroads_GPS
- Date, S.V. “Crossroads GPS Reports A Single Donation Of $22.5 Million In 2012.” WBUR. November 19, 2013. Accessed May 20, 2023. https://www.wbur.org/npr/246030728/crossroads-gps-reports-22-5-million-single-donation-in-2012
- Maquire, Robert. “Pro-Tillis dark money group funded entirely by Crossroads GPS.” Open Secrets, November 17, 2015. Accessed May 20, 2023. https://www.opensecrets.org/news/2015/11/pro-tillis-dark-money-group-funded-entirely-by-crossroads-gps/