Michelle Malkin

You won't be surprised to learn that the Freelancers Union -- the largest CO-OP loan beneficiary to date, with a total $341 million subsidy -- is a left-wing outfit founded by a self-described "labor entrepreneur" and MacArthur "genius." Sara Horowitz has already snagged countless grants from the city and state of New York, the liberal Ford Foundation, the John D. and Catherine T. MacArthur Foundation, the Robert Wood Johnson Foundation, and the Rockefeller Foundation.

Horowitz and Obama served together, along with former green jobs czar Van Jones, as advisers for the progressive think tank Demos -- which in turn partnered with fraud-ridden community organizers ACORN and Project Vote. She also runs a political action committee called "Working Today" that crusades for an expanded government safety net. Crowing about the CO-OP loan from her fellow progressive warrior, Horowitz exulted: "It's like venture capital for health care." Or more accurately, to borrow South Carolina GOP Sen. Jim DeMint's phrase, venture socialism.

While Horowitz plots to rope in 200,000 new clients, existing customers protested in The New York Times over lousy customer service and abrupt changes that resulted in "higher premiums, higher deductibles and more holes than their current plans." Horowitz is more preoccupied with ensuring that the "social-purpose company" meets social and environmental justice goals than with customer needs.

Another of the Obamacare slush fund winners, Common Ground Healthcare Cooperative in Wisconsin, scooped up a $56.4 million federal loan. The group describes itself as a "coalition of religious groups and other organizations." Its pedigree is much more radical than that. As the Milwaukee Journal Sentinel noted, Common Ground "is the Milwaukee affiliate of the Industrial Areas Foundation, founded in 1940 by Saul Alinsky, a famed community organizer and author of 'Rules for Radicals.' The organization, based in Chicago, bills itself as the oldest and largest community organizing network."

The Industrial Areas Foundation was funded largely by the Gamaliel Foundation, which employed Obama in Chicago. As I first reported in 2009, Gamaliel's Gregory Galluzzo wrote that he "met with Barack on a regular basis," that Obama "acknowledged publicly that he had been the director of a Gamaliel affiliate," and that "we are honored and blessed by the connection between Barack and Gamaliel." No kidding. As Americans for Limited Government President Bill Wilson put it: "These grants/loans reek of political payola."

Cronies reap. Taxpayers weep.


Michelle Malkin

Michelle Malkin is the author of "Culture of Corruption: Obama and his Team of Tax Cheats, Crooks & Cronies" (Regnery 2010).

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