After a Stumble, Tech Lobby Refocuses on Immigration

Mr. Green was pressing the flesh to drum up support for Fwd.us, the advocacy group he created with financial backing from his college roommate, Mark Zuckerberg, the Facebook co-founder, and several of their mostly young millionaire friends in Silicon Valley. It was a critical moment for the organization, because soon after making its debut this spring, Fwd.us fumbled badly.

Its stated goal was to overhaul immigration law. But its first steps included financing flashy, campaign-style television ads for conservative lawmakers, whose votes were seen as crucial to passing an immigration bill in the Senate. The ads promoted their pet conservative causes, including the Keystone XL pipeline. Fwd.us immediately lost many of its existing and would-be supporters in the valley.

Now the group is trying to turn around its image as it gears up for the fight for immigration overhaul in the House.

For now, its ads focus squarely on immigration rather than other more incendiary issues like drilling in Alaska or health insurance regulation. Its most recent television spot, for example, praised Kelly Ayotte, Republican of New Hampshire, for supporting the Senate bill last week despite significant opposition in her state. Its latest Web ad is a paean to the ultimate American ideal: the Statue of Liberty.

The group also has a new executive director, Todd Schulte, a veteran political aide with the Washington experience that Mr. Green lacks. And it is organizing tried-and-true town hall meetings like the one here to rally industry support for lawmakers who support a more open immigration policy, including provisions to let tech companies bring in many more foreign engineers. Others are planned in critical battleground districts, like Utah and North Carolina.

This evening, Mr. Green invited entrepreneurs to speak about their run-ins with the immigration bureaucracy. A few engineers from overseas had joined the meeting using Skype; slow-moving, teleporting robots wheeled iPads around the room, showing their disembodied faces glowing on screen. One member of Congress was here to hear their complaints: Representative Mike Honda, a Democrat from nearby San Jose.

Despite the apparent tweaks to its approach, Fwd.us contends its original strategy worked, helping rally senators to pass the landmark immigration bill last week.

“I would argue we’ve been pretty consistent,” said Rob Jesmer, campaign manager at Fwd.us. “We are going to use a lot of different things to try and pass this, to try to affect the process.”

After weeks of silence, Mr. Zuckerberg publicly defended his organization’s strategy in mid-June, calling it necessary and “unique.”

“That approach — of actually trying to work with people on both sides — is what makes us unique,” he wrote in response to questions on his Facebook page, adding: “And without bringing people in different parties and with different views together, meaningful reform will never happen.”

His office declined numerous requests for an interview.

The group has not revealed how much money it has raised so far, saying only that it is enough to make a difference in the process. Nor has it revealed any details on how it plans to sway the Republican-controlled House, except that it will back lawmakers who support a favorable immigration bill.

“I like to think we here in Silicon Valley have a different — and I hope, better — way of doing things,” Paul Graham, a venture capitalist and a founder of the technology incubator Y Combinator said about his hopes for Fwd.us.

This is precisely what complicates Fwd.us’s mission. Its principal constituents, the wealthy entrepreneurs of the valley, like to think of themselves as exceptional — except that some of its tactics have been criticized here precisely for reflecting an unexceptional Beltway approach.

In addition to the controversial ads, Fwd.us hired well-known Washington lobbyists. Its subsidiaries count political veterans like Haley Barbour, a former Mississippi governor and a Republican, and Joe Lockhart, a former spokesman for the Clinton administration, as board members.

Some Washington lobbyists say rewarding lawmakers with costly television ads could have unforeseen consequences for the industry, not least by considerably raising the price of influence.

“Most companies face multiple issues in D.C.,” said Alan Davidson, who was Google’s legislative director in Washington from 2005 to 2012, and is now a visiting scholar at the Sloan School of Management at the Massachusetts Institute of Technology.

“High-profile ad buys on unrelated social issues might help in one debate, but can alienate future allies and set unrealistic expectations,” he said. “Hopefully this is just another sign of the tech community’s evolution and growing engagement in public policy.”

Mr. Zuckerberg has said that he chose to tackle immigration after hearing the life stories of unauthorized students at a junior high school near Facebook’s headquarters in Menlo Park, where he taught a class. Although Mr. Green was his choice to lead Fwd.us, Mr. Zuckerberg has taken the heat for the group’s missteps. Lately, several people in Silicon Valley have singled out Mr. Green for mismanaging the campaign and in turn, damaging Mr. Zuckerberg’s brand.

“If you come out, as Mark did, you come out as a public piñata,” said one investor, who, like many people interviewed for this article, declined to be named, because, he said, he did not want to inflame sentiments. The investor said Mr. Green had asked him this year for a “seven-figure” contribution, with no explanation of Fwd.us’s strategy. He called it a “gun to the temple” approach.

Another industry investor surmised that Mr. Zuckerberg’s personal image had suffered because of the negative attention to the group. “It is not with the masses,” the investor said. “It’s with a few people, insiders in Silicon Valley who have checks to write. A lot of them are angry and disappointed about Joe Green’s approach.”

Mr. Green sent him an e-mail solicitation in early June, the investor said, which he declined because he disagreed with the group’s tactics so far.

Fwd.us declined requests for an interview with Mr. Green. Mr. Jesmer described him as the organization’s “visionary” and said, “We talk to him 14 times a day.”

A graduate of Harvard, Mr. Green in 2007 created a Facebook application for online advocacy and fund-raising, called Causes, and in 2011, joined NationBuilder, a company that makes digital tools for political campaigns. He stayed for just under a year, before joining Fwd.us.

Jonathan Nelson, founder of a networking group, Hackers and Founders, said Mr. Green saw himself as a “pragmatic idealist.” The two met for a beer at Antonio’s Nut House, a popular pub in Palo Alto, in mid-June. Mr. Green, he recalled, said he wanted to win the immigration fight in Washington — and was willing to play ball, Beltway style. Mr. Nelson replied that Mr. Green had misread his fellow geeks.

“It’s a sin in the techno religion to play dirty politics,” Mr. Nelson said.

Bits Blog: Tech Pushes to Keep Its Spoils in Immigration Bill

Charles Dharapak/Associated Press Steve Case, co-founder of America Online and now chief executive of the investment firm Revolution, spoke about immigration reform outside the White House on Tuesday.

Keen to hold on to its winnings in a landmark Senate immigration bill, the technology industry this week put on what one lobbyist called “a full court press” on Capitol Hill, dispatching executives and entrepreneurs to buttonhole lawmakers and rallying people in the industry to dispatch e-mails, telephone calls and Twitter messages to Congress.

Human resource department heads from eight of the country’s largest technology companies popped into the offices of more than a dozen members of Congress. A new group called Engine Advocacy, which has focused on a so-called start-up visa for foreign entrepreneurs, sent its representatives to the Hill and set up a new online platform, called www.keepushere.org, to encourage techies to send Twitter posts to members of Congress. And yet another industry-led coalition, called Partnership for a New American Economy, and supported by New York City’s mayor, Michael Bloomberg, was rallying supporters to aim at crucial senators, state by state, to support the bill with a “virtual march.”

.@senatorboxer I’m from CA. #iMarch b/c #immigration reform helps UC STEM programs & creates jobs. http://t.co/0Es5di4fsg

— Dave McClure (@davemcclure) 22 May 13

The efforts all point to a wave of unprecedented effort by Silicon Valley firms to make sure the overhaul of the federal immigration law goes in their favor. The omnibus bill, which arrived on the full Senate floor this week after intense negotiations in the Judiciary Committee, contains several provisions directed specifically at the technology sector. It makes it easier for foreign students who get science and engineering degrees at American universities to get permanent residency, creates a new temporary visa for entrepreneurs, and in the most contested clause, vastly expands how many temporary contract workers can be brought into this country under so-called H-1B visas, while also raising the minimum wages they must be paid.

I just pledged to call my Senator on June 18th to ask for support on comprehensive immigration reform http://t.co/N8vpzuv7YP #KeepUsHere

— Swaroop Kolli (@swaroopkolli) 12 Jun 13

The delicate political agreement could still fall apart, and for Silicon Valley, the temporary work visas expansion is by far the most delicate piece. Labor groups say the law should require these companies to hire Americans first. Industry groups call that undue regulatory interference. Both sides have tried to muster evidence to back their claims. And this week, the industry upped the ante by bringing human resources managers directly to Washington to persuade Congress of their need to bring in foreign workers to fill job openings. Organized by the Information Technology Industry Council, a trade group that includes companies like Apple and Oracle, the hiring managers told lawmakers that the demand for talent is so competitive that they sometimes blatantly poach from one another.

There are likely to be more calls on the Senate floor to require companies to show that they are making efforts to hire Americans.

Meanwhile, Senator Jerry Moran, Republican of Kansas, introduced an amendment Wednesday to lower the investments that an entrepreneur would need to get permanent residency. The current bill requires a foreign entrepreneur to raise $100,000 in investments to gain a temporary visa and $500,000 for permanent residency. Among other things, the amendment would lower those thresholds: anyone who raises $250,000 in investments would be eligible for permanent residence.

The biggest push is yet to come. All eyes are on what the industry’s newest, most well-financed lobby, Fwd.us, backed by Facebook’s Mark Zuckerberg, will do next. It has stepped into the immigration fight with expensive television advertisements for key Republicans who backed the immigration bill in the Senate Judiciary. Those ads included a television spot that praised the Keystone XL pipeline, a pet project of key Republican senators, and it cost Fwd.us support from some of its backers in Silicon Valley. It remains to be seen what kinds of political advertisements the group will bankroll next, and who they will back.

Latest Product From Tech Firms: An Immigration Bill

But most who watched the commercial, sponsored by a new group that calls itself Americans for a Conservative Direction, may be surprised to learn who bankrolled it: senior executives from Silicon Valley, like Mark Zuckerberg of Facebook and Reid Hoffman of LinkedIn, who run companies where the top employees donate mostly to Democrats.

The advertising blitz reflects the sophisticated lobbying campaign being waged by technology companies and their executives.

They have managed to secure much of what they want in the landmark immigration bill now pending in Congress, provisions that would allow them to fill thousands of vacant jobs with foreign engineers. At the same time, they have openly encouraged lawmakers to make it harder for consulting companies in India and elsewhere to provide foreign workers temporarily to this country.

Those deals were worked out through what Senate negotiators acknowledged was extraordinary access by American technology companies to staff members who drafted the bill. The companies often learned about detailed provisions even before all the members of the so-called Gang of Eight senators who worked out the package were informed.

“We are very pleased with the progress and happy with what’s in the bill,” said Peter J. Muller, a former House aide who now works as the director of government relations at Intel. “It addresses many of the issues we’ve been advocating for years.”

Now, along with other industry heavyweights, including the U.S. Chamber of Commerce, the technology companies are trying to make sure the law gets passed — which explains the political-style television advertising campaign, sponsored by a group that has revealed no details about how much money it gets from its individual supporters.

The industry also hopes to get more from the deal by working to remove some regulatory restrictions in the proposal, including on hiring foreign workers and firing Americans.

Silicon Valley was once politically aloof before realizing in recent years that its future profits depended in part on battles here in Washington. Its effort to influence immigration legislation is one of its most sophisticated.

The technology industry “understands there’s probably not a tremendous amount of resistance to their part of the bill,” Mr. Rubio said in an interview last week, saying he welcomed the industry support. “But their future and getting the reform passed is tied to the overall bill.”

The bill has a good chance of winning passage in the Senate. The hardest sell will come in the House, where many conservative Republicans see the deal as too generous to immigrants who came to this nation illegally.

Rob Jesmer, a former top Republican Senate strategist who helps run the new Zuckerberg-backed nonprofit group that sponsored the Rubio ad, insisted that his organization’s push is based on the personal convictions of the executives who donated to the cause and who believe immigration laws need to be changed. Those convictions just happen to line up with what their corporations are lobbying for as well, he said.

“It will give a lot of people who are educated in this country who are already here a chance to remain in the United States,” Mr. Jesmer said, “and encourage entrepreneurs from all over the world to come to the United States and create jobs.”

The profound transition under way inside Silicon Valley companies is illustrated by their lobbying disclosure reports filed in Congress. Facebook’s lobbying budget swelled from $351,000 in 2010 to $2.45 million in the first three months of this year, while Google spent a record $18 million last year.

That boom in spending translates into hiring of top talent in the art of Washington deal-making. These companies have hired people like Joel D. Kaplan, a onetime deputy chief of staff in the Bush administration who now works for Facebook; Susan Molinari, a former House Republican from New York who is now a Google lobbyist; and outside lobbyists like Steven Elmendorf, a former chief of staff to Richard A. Gephardt, a former House majority leader, who works for Facebook.

The immigration fight, which has unified technology companies perhaps more than any other issue, has brought the lobbying effort to new heights. The industry sees it as a fix to a stubborn problem: job vacancies, particularly for engineers.

“We are not able to fill all the jobs that we are creating,” Brad Smith, Microsoft’s general counsel, told the Senate Judiciary Committee late last month.

Chief executives met with President Obama to discuss immigration. Venture capitalists testified in Congress. Their lobbyists roamed the Senate corridors to make sure their appeals were considered in the closed-door negotiations among the Gang of Eight, which included Mr. Rubio and Senator Charles E. Schumer, Democrat of New York, who have been particularly receptive.

In the many phone calls and hallway asides on Capitol Hill this year, those lobbyists realized that they had to give a little to get a lot of what they wanted. At the top of their wish list was an expansion of a temporary visa program called the H-1B, which allows companies to hire foreigners for jobs in the United States. There are a limited number of H-1Bs available each year, and competition for them is fierce.

Companies like Facebook and Intel use them largely to bring workers to their own offices. Consulting companies like Tata, based in India, use them to supply computer workers at American banks, oil companies and sometimes software firms.

Eric Lipton reported from Washington, and Somini Sengupta from San Francisco. Neha Thirani contributed reporting from Mumbai, India.