DOJ Says Acorn Can Be Paid for Pre-Ban Contracts

WASHINGTON — The Justice Department has concluded that the Obama administration can lawfully pay the community group Acorn for services provided under contracts signed before Congress banned the government from providing money to the group. . . . the group has become a prime target for conservative critics, and on Oct. 1, President Obama signed into law a spending bill that included a provision that said no taxpayer money — including money authorized by previous legislation — could be “provided to” the group or its affiliates.

A Housing and Urban Development Department lawyer asked the Justice Department whether the new law meant that pre-existing contracts with Acorn should be broken. And in a memorandum signed Oct. 23 and posted online this week, Mr. Barron said the government should continue to make payments to Acorn as required by such contracts. . . .

Criticism of Acorn escalated in September, when two conservative activists released videos they had recorded using secret cameras of Acorn workers in several cities. The activists had posed as a pimp and a prostitute seeking financial advice. Instead of raising objections, the Acorn employees counseled the couple on how to hide their illicit activities and avoid paying taxes.

Conservatives seized on the videos to criticize the group further, highlighting that the Obama campaign had paid an Acorn affiliate for get-out-the-vote efforts. Congress then enacted the ban on providing money to it. Acorn has fired several of the employees depicted in the videos. . . . more here

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