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Lobbyists are bracing themselves for the impending political fallout surrounding Sen. John Ensign, following allegations that the once-powerful Nevada Republican may have violated ethics rules in helping a former aide-turned-lobbyist secure business.
Ensign, who confessed to having an affair with the former staffers wife, allegedly not only helped Doug Hampton violate ethics rules, but also coordinated his move to a consulting firm and helped him secure clients, the New York Times reported late last week.
Republicans on K Street quickly tried to tamp down any speculation that the recent accusations will lead Ensign to resign.
Eric Ueland, a Republican lobbyist at the Duberstein Group, said the allegations are too new and need to be fully digested before Ensigns fate will be decided.
I dont think anybody has thought that through, Ueland said.
Others close to Ensign say they dont expect an imminent resignation.
Hes said that hes going to put his head down and get back to work, said one source familiar with the Ensign operation. Thats what hes said from the get-go.
Still, Ensigns near-pariah status on Capitol Hill has limited his usefulness to lobbyists, despite his positions on the powerful Finance Committee and Commerce, Science and Transportation panel.
As Senate Republicans have largely benched Ensign, K Streeters have taken that as a cue to distance themselves from him, according to one veteran Republican lobbyist.
Arms length is kind of typical in how people on K Street act when someone has a cloud over them, the lobbyist said.
While health care stakeholders worked Republican Senators to try to beat back more liberal proposals during the Finance Committee health care markup last week, lobbyists say Ensign was largely left alone because hes been so marginalized by his fellow Republicans.
The gaming industry may be the biggest loser among Nevada interests in Ensigns demoted status.
As a senior member of the Finance and Commerce panels, Ensign has long supported the industry, pushing back any attempts to restrict gambling, but hes no longer in a position to take the lead on any legislative initiatives or defensive posturing, according to several lobbyists.
That has left Senate Majority Leader Harry Reid (D-Nev.), who has long worked in concert with Ensign on home-state issues, with having to take the lead on all Nevada interests.
If theres something that needs to get done for Nevada its a double lift for Reid, said one Democratic consultant with ties to the state.
The ramifications of the scandal could have more wide-ranging effects, too.
Ensigns long been close to K Street. He got cozy with the influence community, first as a Member of the House and later in his leadership positions, working the fundraising circuit as head of the National Republican Senatorial Committee for the 2008 election cycle.
Seen as part of a new generation of politicians, Ensigns pro-business and approachable personality helped him grow a wide network of downtown confidants.
He also has a large cabal of former aides who have moved downtown, including legislative assistant Alexis Bayer, now at the National Association of Manufacturers; senior policy adviser Bryan Cunningham, now of Polaris Consulting; and aide Jeremy Hancock, now with Experian.