As the sixth year of the United States' occupation of Iraq begins and Congress prepares to hear again from General Petraeus on the status of the US campaign in Iraq, it is important to recognize how members of Congress are financially tied to the defense industry. A new report by the Center for Responsive Politics called "Strategic Assets" demonstrates that many members of Congress financially gain when military budgets grow:

"According to the most recent reports of their personal finances, 151 current members of Congress had between $78.7 million and $195.5 million invested in companies that received defense contracts of at least $5 million in 2006. In all, these companies received more than $275.6 billion from the government in 2006, or $755 million per day, according to FedSpending.org, a website of the budget watchdog group OMB Watch.

The minimum value of Congress members' personal investments in these contractors increased 5 percent from 2004 to 2006, but because lawmakers are only required to report their assets in broad ranges, the value of these investments could have risen as much as 160 percent--or even dropped 51 percent. It is also unclear how many members still hold these investments, since reports for 2007 are not due until May 15, 2008. In 2004, the first full year after the Iraq war began, Republican and Democratic lawmakers--both hawks and doves--had between $74.9 million and $161.3 million invested in companies under contract with the Department of Defense.

As the military operations in Iraq and Afghanistan have expanded and transformed, so, too, has the need for goods and services that extend beyond helicopters, armored vehicles and guns. Giant corporations outside of the defense sector, such as Pepsico, IBM, Microsoft and Johnson & Johnson, have received defense contracts and are all popular investments for both members of Congress and the general public. So common are these companies, both as personal investments and as defense contractors, it would appear difficult to build a diverse blue-chip stock portfolio without at least some of them.

Lawmakers' investments in these contractors yielded them between $15.8 million and $62 million in income from 2004 through 2006, through dividends, capital gains, royalties and interest, the Center found. Sen. John Kerry (D-Mass.) and Rep. James Sensenbrenner (R-Wis.), who are two of Congress's wealthiest members, were among the lawmakers who earned the most income from these contractors between 2004 and 2006, with Sensenbrenner making at least $3.2 million and Kerry reaping at least $2.6 million."

Two additional findings in this report show that members of Congress that sit on the Senate Foreign Relations and Armed Services committees also have significant investments in the weapons industry:

"In 2006, members of these two committees had between $32 million and $44 million invested in companies with DOD contracts. Foreign Relations member Kerry's investments accounted for most of it--between $28.9 million and $38.2 million. Members of the two committees held between $3 million and $5.1 million in defense-only companies.

Chairs of other defense-related committees are similarly invested. Sen. Joe Lieberman (I-Conn.), chairman of the Senate Homeland Security and Governmental Affairs Committee, had at least $51,000 invested in these companies in 2006. Rep. Howard Berman (D-Calif.), who heads the House Foreign Affairs Committee, had at least $30,000, including between $1,001 and $15,000 invested in defense company Raytheon, which has one of its major facilities right outside of Berman's district. According to Berman's office, that holding is in a trust the congressman inherited from his parents."

Lastly, despite how members of Congress might vote on the issue of Iraq and the Defense budget in general, Democrats and Republicans are both heavily invested in the arms industry:

"While Democrats are more likely to advocate for ending the Iraq war sooner than Republicans, as a group they have more of their own money invested in America's military efforts. In 2006 Democrats had at least $3.7 million invested in the defense sector alone, compared to Republicans' $577,500. More Republicans, however, held stock in defense companies in 2006--28 of them, compared to 19 Democrats.

According to a spokesman for one of these investors, Rep. Roy Blunt (R-Mo.), who held at least $15,000 in Lockheed Martin stock in 2006, it's "insulting" to make a connection between personal investments and a lawmaker's job. "Congressman Blunt does not consider his personal finances when voting for legislation, especially on issues as weighty as sending our troops into harm's way," Blunt spokesman Nick Simpson said. (Update: After the posting of this story, Simpson added that the stock is an investment held by Blunt's wife, who received it from her mother as a gift.)

Rep. Sam Farr (D-Calif.), who has spoken out against the administration's policy in Iraq and belongs to the Out of Iraq Congressional Caucus, had at least $50,000 invested in Boeing in 2006. Farr's office did not respond to Capital Eye's inquiries about this investment and whether he still holds the stock."