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FreedomWorks Chairman Dick Armey Resigns Over Internal Split — Group Clarifies $8M Contract

Dec. 4, 2012 4:50pm Erica Ritz

FreedomWorks Chairman Dick Armey Resigns Over Internal Split | Group Explains $8 Million Contract

Conservative FreedomWorks chairman Dick Armey addresses a health care reform protest on December 15, 2009 in Washington, DC. (Photo: Getty Images)

Former Republican House Majority Leader Dick Armey says he has left the prominent conservative Tea Party group FreedomWorks because of what he calls an internal split over the group’s future direction.

That split — which was made official in a resignation letter from November and obtained by the liberal outlet Mother Jones this week — is now focusing on an $8 million contract that FreedomWorks tells TheBlaze is being misrepresented.

On Tuesday, the Associated Press (AP) published a story about a “confidential contract” that it says shows Armey agreed in September to resign from his role as chairman of Washington-based FreedomWorks in exchange for $8 million in consulting fees paid in annual $400,000 installments. Dated Sept. 24, the contract specifies that Armey would resign his position by the end of November.

According to the contract, Armey’s consulting fees will be paid by Richard J. Stephenson, the founder and chairman of the Cancer Treatment Centers of America and a board member at FreedomWorks.

National Media outlets appear to have fixated on Armey’s takeaway package, though, a Washington Post headline reading: “FreedomWorks Chairman Dick Armey quits Tea Party group in secret deal that pays him $8 million.”

But TheBlaze spoke with a FreedomWorks representative Tuesday, who clarified that the $8 million sum is a contract between two private parties, and it is not coming from donations to FreedomWorks.

Armey confirmed his departure Tuesday, telling the AP that “my differences with FreedomWorks are a matter of principle.” Armey said he made the decision to quit FreedomWorks in August, but that Stephenson and other board members urged him not to leave until after the Nov. 6 election.

The former House majority leader’s departure comes as a new sign of potential acrimony between conservatives and Republicans as the party’s leadership considers how to best explain its principles and issues over an unexpectedly resilient Democratic Party.

Armey has not described his specific concerns about Freedmworks. In the internal Nov. 30 resignation memo published by Mother Jones, however, Armey told FreedomWorks CEO Matt Kibbe to remove his “name, image and signature” from all of the group’s materials and web operations.

Armey, who had been with the Tea Party group since its 2004 founding, is a veteran Texas GOP political figure who was intimately involved in the GOP’s conservative “Contract with America” congressional movement in the 1990s. While Armey, 72, was the group’s eminence at first, Kibbe has been its most active official, appearing at FreedomWorks’ public gatherings.

The Associated Press contributed to this report.

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Comments (109)

SharonIsCaring
Posted on December 4, 2012 at 7:58pm
Every family has it’s loser’s, but you don’t give up on your family. Freedomworks is the ONLY group in the world working towards our furure w/ American family morals and values.

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- The-Real-Enrico
  Posted on December 4, 2012 at 8:57pm
  I don’t know about only but they’re now better off without moderate (or rino) Dick Armey cashing in on the our liberty movement. Dick maybe more conservative than you’re average progressive dem or republican but he was far from our a liberty minded tea partier.
  
  Why do you think the known moderate is taking leaving with a 8 mil check if he was as fighting a grass root principle base movement and then when he leaves he says its about principles?
  
  I hope not ever here about Dick Armey with or around a tea party/ liberty movement again.
  
  Report this comment
- CanadaRocks
  Posted on December 4, 2012 at 11:17pm
  Why would any other country in the world want to start a group with american values? No one else on earth wants to live under the values of america. I know i am from a “socialist” country and all but how is capitalism working for you? Crippled with debt, a country totally divided by class and race. Our banks didnt crash. We have them regulated so that doesnt happen. Enjoy america my friends. Glad canada has a front row seat.
- Brother Winston Smith
  Posted on December 5, 2012 at 12:32am
  Actually no. FAKE-TEA GOP Freedomworks is PURE REPUBLICAN. They trick naive Americans into THINKING they’re “tea” in order to swindle money/support/votes for the GOP, directly or indirectly. But to repeat, Freedomworks IS IN NO WAY “tea party” (Constitutional law and liberty).
  
  Report this comment
- Ghandi was a Republican
  Posted on December 5, 2012 at 12:33am
  Okay canada. Let em explain it to you. We have alinsky radicals and progressives who have been trying to destroy America for 100 years. That mean anything to you? That’;s where racial tennsion comes from. it’s called “organizing” (aka incitement, marginalizing and sabotage). You may have heard this referenced as “the man” Out banking system has been under assault by progressive radicals and forced lending schemes. Tax and Spend (ie. removing the money from the private sector in order to starve it and destroy the tax base at State and Local levels) has been unchecked for decades. This is what the Democrat party is about. You may have them if you like. They are a worthless impediment here in America. They will tell you the same. Read their books and generally listen to them once in a while. It is impossible to miss.
  
  Report this comment
- NukeHaze
  Posted on December 5, 2012 at 4:41am
  I keep telling you… it’s Soros’ stealing of the election and saying “see me crush your insignificant rebellion” and “witness the firepower of this fully operational space station” (a la Emperor’s voice and Star Wars).
  
  It isn’t that the Dems are resilient, it’s that we keep being told that the Soros fraudulent election is not the driods we are looking for and to forget about doing anything and that we lost and to move on because no good will come of doing anything that we could do. Buying into the loser’s philosophy like that is nothing short of cowardice and a complete capitulation and compromise of all that most of us hold dear, principles and values. I, for one, will not fosake God.
  
  Report this comment
- ThoreauHD
  Posted on December 5, 2012 at 5:00am
  It’s not Capitalism when the Government decides who wins and who loses comrade. I realize you don’t know much about American history, and why should you? You think the media tells you who we are. Because, after all, you wouldn’t find out for yourself.
  
  But that’s not really the issue at hand. The issue is that you are uninformed. If you want to know why “da capitalisms is brokenz”, then start on Christmas 1913 in American history. That’s when our Constitution was first breached by a socialist(like you) President with approximately your comprehension level. He didn’t understand that private property is the foundation of civilization either.
  
  Anyhow, that’s where you start. If you have any informed questions in the future, please ask. We’ll be very happy to answer you. There’s just no point continuing because you have no baseline to work with. But I encourage you to study it.
  
  Report this comment
- December5
  Posted on December 5, 2012 at 5:59am
  Things seem t be falling apart on the right. Read fresh political commentary at: http://smallcraftadvisorychronicles.blogspot.com/
  
  Report this comment
- NoMoreGray
  Posted on December 5, 2012 at 1:27pm
  Sorry Canada
  http://www.zerohedge.com/news/quantifying-big-five-canadian-banks-114-billion-bailout
  and let’s not forget GM and Chrysler in Canada. Canada was given 11.7% ownership in GM while American bond holders were robbed.
  
  Report this comment
- Rancher2
  Posted on December 5, 2012 at 2:18pm
  You should look into http://WWW.GOOOH.com they have a great strategy fior identifying true conservative principles. After reading this article and hearing Bohener position the Republicans are not upholding a principled party! They appear to be on their way to irrelivance.
  
  Report this comment
- MONICNE
  Posted on December 6, 2012 at 6:19am
  Freedom works under the Dick Army was as Corporatist corrupt as it gets, that Dick knows exactly the right mix of elite rich sponsors to represent at the expense of the Veterans and first responders and small town leaders who quietly represent the values of real America. The Army of Dicks would sell out all we value to promote a new minimum wage mega store in place of downtown Main Street.
  
  TEA is Not Aussie Kool Aide
  
  Report this comment
thekriplins13
Posted on December 4, 2012 at 7:55pm
The Blaze should have broke this News… seriously !

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MDECKER
Posted on December 4, 2012 at 7:50pm
Freedomworks did more to coalesce the Conservative vote, than any other organization during this last election cycle. The fraud on the other side was just too much to overcome and a Marxist-Leninist won.

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- SaturdaysWarrior76
  Posted on December 5, 2012 at 12:05am
  agree!
  
  Report this comment
- ncdave4life
  Posted on May 10, 2013 at 6:17pm
  FreedomWorks used to be an outstanding organization, thanks, in large part to Dick Armey’s principled, conservative leadership. Unfortunately, Matt Kibbe hijacked the organization and attacked conservatives, spreading misinformation on behalf of Ron Paul RINOs. Under Matt Kibbe, FreedomWorks smears true conservatives with vicious, baseless lies, and sows division among Republicans, weakening both the Grand Old Party and the conservative movement, and strengthening the Left.
  
  Report this comment
commonsenseguy
Posted on December 4, 2012 at 7:41pm
to all of you who are bitching and saying that you want ever support freedom works or that you knew they were not a real grass roots group must really stop and think for a minute, as with any group you must have lobbyist { consultants } even if it is dick army or cheny to get something done in washington,there is no way a regular joe can get anything done with out help,so to set here call names,claim being played by freedom works or the tea party is just crazy, how do you think the left wing commie loving,constitution hating,race baiting, illegal immigrant supporting,food stamp,free phone,welfare loving idiots get what they want,they have more powerful people who make way more money than what dick made so that is how come we are under attack,because they got what they wanted and have george soros’s unlimited money to pay their consultants.so stop they bullsh*t and continue to stay involved even if you don’t like the people who is representing whatever group,because if we continue to split up America because we don’t like some one we will be screwed even more,this is what the left wants is for us to set down and shut up,so they can continue to force their communist agenda don’t our throats,they have the money,lobbyist,and the power to keep their agenda going,we must stay together no matter what or who is being paid and we must not let them tell us to get in line and follow them down the road to the communist utopia they call AMERICA.

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- eddie333
  Posted on December 4, 2012 at 9:16pm
  Your post is unreadable because it is one sentence w/o punctuation.
  
  Report this comment
- kindling
  Posted on December 4, 2012 at 10:27pm
  Commonsenseguy is really upset and I agree with him. If he was talking he would not have taken many breaths and that is how he is writing. We need to get upset because we are being rail roaded by a pack of thugs and it is time to stand up and call them out. Commonsenseguy is right…..just needs to take a breath.
  
  Report this comment
- independentvoteril
  Posted on December 5, 2012 at 12:43am
  insert the . when you need to take a breath.. shouldn’t be to hard,,
  
  Report this comment
- TheBigMike
  Posted on December 5, 2012 at 2:40pm
  And begin a new paragraph when you would take a longer breath.
  
  Seriously, you may have written the most insightful and brilliant treatise on current events, but few will read it as formatted. I didn’t. Kudos to Kindling for slogging through.
  
  Report this comment
- Sickandtiredofextremists
  Posted on December 5, 2012 at 8:21pm
  (Maybe you could take an English class in night school so we could understand what you are trying to say. Punctuation is a marvelous tool.)
  
  Report this comment
bitterclinger
Posted on December 4, 2012 at 7:25pm
“The former House majority leader’s departure comes as a new sign of potential acrimony between conservatives and Republicans as the party’s leadership considers how to best explain its principles and issues over an unexpectedly resilient Democratic Party.”

Unexpectedly resilient? Jeebus! They’re evil filth! Putting aside their low-information voters, FW wasn’t too impressive in rallying the GOP dirtbags — like Boehner, Cantor, et al. — in congress. The doofuses that wear those idiotic cowboy hats — like Amey and Salazar — remind me of little kids playing pretend. Matt Kibbe and his mutton chops? This jury is still out.

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Redmanblackdog
Posted on December 4, 2012 at 7:17pm
Just another Rino. Take the money and run over to the liberals like Cristi and Spector.

We will purge them out sooner or later. How could someone so intent on helping the nation, give up and want 8 million dollars for it. It wasn’t about saving the country was DICK. It was about your pocket book. DISGUSTING, I hope someone puts him in his place. And shame on FreedomWorks for paying someone who should be volunteering! TO SAVE THE COUNTRY FOR OUR CHILDREN

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- The-Real-Enrico
  Posted on December 4, 2012 at 7:41pm
  They were contractually obligated to pay as he was one of the founding members who set up his own sweet packet. This just show how Dick Armey live up to his name. Do we really think Dick was attempting helping to help the movement or cash in?
  
  I liked most of the people over there at freedomworks (like Matt Kibbe and others) but I knew I was never going to donate over there as long as Dick Armey has any power with them.
  
  If Dick ever had any integrity or cared about the movement he would not take the cash and/or donate it back. He is and was always moderate who was only cashing in on the movement and helping his on image.
  
  Report this comment
The-Real-Enrico
Posted on December 4, 2012 at 7:17pm
Good! Dick has been the only thing holding me back from actually donating.

I like most of freedomworks but they had some bad actors apart of their group like Dick Armey who was a moderate conservative and not a tea party liberty minded conservative libertarian.

I’ve always liked Matt Kibbe. I hope this helps for the future.

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FedupinCA
Posted on December 4, 2012 at 7:10pm
Good riddance. Always thought the presence of Armey was a tipoff that Freedomworks wasn’t a real grassroots TEA party organization, but a lame GOP attempt to co-opt the movement. If there is any courage in any of the rank and file, they will leave the GOP and start a 3rd party.

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- The-Real-Enrico
  Posted on December 4, 2012 at 7:25pm
  I agree. I always liked everything Freedomworks spoke about and most of their leadership and talking heads but I could never get past Dick Armey being a chairmen and one of its founders.
  
  I was hoping the door was going to hit him on the way out but apparently a stack of cash hit him instead. I hope this help them and the rest of the liberty minded people their like Matt Kibbe. I actually consider donating to them now.
  
  Report this comment
- FedupinCA
  Posted on December 4, 2012 at 8:01pm
  Agreed Real!
  
  Report this comment
Southernsoul
Posted on December 4, 2012 at 7:05pm
A conservative linked with the Contrac With America? Yo mean the contract they waked all over before the ink was dry on the paper? He’s gone? Good. Maybe now Freedomorks will become a real political power.

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krod2516
Posted on December 4, 2012 at 6:57pm
What a day we had today. The Republican Progressives have drawn the line and the sand and we now know exactly who to get rid of. Cant wait for this Battle. Stay strong Tea Party, I feel very empowered today. 9 house members who voted yea for the UN bill, Boehner, and Army. You see, it is much harder to see your enemies when they are trying to act like your friends. Beck, you were right. They are openly proud to be the progressives they are.

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stanbeck
Posted on December 4, 2012 at 6:51pm
Glenn, where are you on this one? Please give us some info…..

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- justangry
  Posted on December 4, 2012 at 7:14pm
  Why do you need Glenn to tell you what to make of this? A RINO from Texas who was getting rich off poor schmucks who think FreedomWorks is a legit grassroots organization quit. So what? I never trusted FreedomWorks or Matt Kibbe anyway.
  
  Report this comment
- The-Real-Enrico
  Posted on December 4, 2012 at 8:22pm
  @justangry Agreed. I could not in good faith truth freedomworks as long as that snake Dick Armey had anything to do with them. But alway I always liked Matt Kibbe.
  
  Whats you’re beef with him? I never knew him to be anything other then a libertarian?
  
  Report this comment
- cykonas
  Posted on December 5, 2012 at 12:06pm
  I never knew him (Matt Kibbe) to be anything other then a libertarian?
  
  Huh? Then why did he and Freedom Works support Gov. Romney? If they really stood for anything remotely close to Freedom and Libertarianism they would be working their fannys off to influence the stranglehold that the two establishment parties have on ballot access, campaign financing, debate access, etc.
  
  Freedom Works is a Trojan Horse and I predict that Armey walking away will not make any substantive difference in their positions. Talk is cheap. Peace.
  
  Report this comment
elsiedinsmore
Posted on December 4, 2012 at 6:41pm
Armey was the one reason I never quite trusted FreedomWorks from the beginning-but liked Matt Kibbe. I don’t have all the facts, so I am willing to reserve judgement. Armey is way too slick, If he were an honorable man, he wouldn’t demand the money.

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Locked
Posted on December 4, 2012 at 6:36pm
Armey was paid half a million annually while working for them, and all his travel expenses were compensated. An $8 million golden parachute is hardly surprising. Anyone who thought FreedomWorks was a “grassroots” extension of the Tea Party was either grossly misinformed or purposefully blind to reality.

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- charles116
  Posted on December 4, 2012 at 8:11pm
  One can smell Armey through the monitor.
  
  Report this comment
- Charles_Almon
  Posted on December 4, 2012 at 8:23pm
  @Locked
  Nice work if you can get it.
  
  Report this comment
FBT
Posted on December 4, 2012 at 6:35pm
I always wondered how Armey had managed to weasel his way into a leadership position with FreedomWorks, and it left me suspect of their efforts for that very reason. He’s part of the very same establishment that we’ve been trying to send to the curb for the past few years. Not quite RINO, but closer than most would prefer.

I got the impression he was in this for self gratification, and based on the parachute he allegedly will receive by leaving the organization tends to support that notion. He was only in it for himself. He has tainted an otherwise good organization.

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truthnstuff
Posted on December 4, 2012 at 6:28pm
WOW, the trolls are all over this one.

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- longknifed
  Posted on December 4, 2012 at 8:25pm
  Hopefully you infilTRAITORS will follow this huge DICK Armey after he permanently destroyed the tea party in 2010. you aren’t taking the liberty movement.
  
  Report this comment
LogicRules
Posted on December 4, 2012 at 6:24pm
8 million dollar contract ?????? INCREDIBLE. Pretty sad. FreedomWorks won’t be getting anymore of my $$$.

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- charles116
  Posted on December 4, 2012 at 8:12pm
  Ralph Reed and Santorum also have PAC’s.
  Sure beats working.
  I think La Palin will also still take yer moola!
  
  Report this comment
- Small World
  Posted on December 4, 2012 at 8:39pm
  @Logicrules .. I totally agree with you what a waste of $8 million dollars.
  
  Report this comment
- proud2bmom
  Posted on December 5, 2012 at 8:41am
  I understand your sentiment, but did you miss where it said that none of that money is coming from Freedomworks coffers?
  
  “According to the contract, Armey’s consulting fees will be paid by Richard J. Stephenson, the founder and chairman of the Cancer Treatment Centers of America and a board member at FreedomWorks.”
  
  Sounds to me like Mr. Stephenson was willing to cough up his own money just to get rid of Dick Armey.
  
  Report this comment
rdk
Posted on December 4, 2012 at 5:48pm
It is a shame, but many TEA Party groups appear to be nothing more than money grubbing organizations. Some groups are legitimately grass roots. A pox on the money grubbers.

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- SocialistSlayer
  Posted on December 4, 2012 at 6:11pm
  Yes, and now the downfall of their organizations. What started off as concerned citizens was hijacked by these career politicians. Time to revolt and hang anyone involved in politics !
  
  Report this comment
- Gourdy
  Posted on December 4, 2012 at 6:12pm
  The biggest mistake the “tea party” made was not forming an actual party with a leadership and a platform focusing on fiscal responsibility. It became this weird amalgam of racists, religious end-timers, and angry, angry people. Intentions were good in the beginning, though, for a very short time.
  
  Report this comment
- Oneirishman
  Posted on December 4, 2012 at 6:48pm
  @GOURDY
  You managed to hit on every Liberal caricature, manufactured by the MSM, to portrait Tea Party Patriots negatively. If you listen to whom a liberal bashes, then you know who they fear. We are coming for you.
  
  Report this comment
- Gourdy
  Posted on December 4, 2012 at 6:54pm
  Irishman, the tea party ideology was roundly repudiated at the polls. Unless it comes back to its original purpose (fiscal conservatism) and shun fringe dwellers like Bachmann, West, Palin, and Cain, they’re not coming back for anyone. Whether you want to believe it or not, the tea party movement is personified by these types of people.
  
  Report this comment
- charles116
  Posted on December 4, 2012 at 8:13pm
  The TeaParty ALWAYS WAS a fake grass roots movement funded by the Koch Brothers.
  
  Report this comment
- right field
  Posted on December 5, 2012 at 10:38am
  FreedomWorks is advertising on all the ‘so-called’ conservative radio talk shows – Do not trust this group or any of the dozens of so-called Tea Party groups that are begging and begging for $$$$$.
  Why would anyone pay someone $8 million and then try to keep it quiet and use weasel / legal words to cover up the facts behind the payment? Smells like a rat.
  
  Report this comment
cloudsofwar
Posted on December 4, 2012 at 5:46pm
hmmmm 8 million dollars. not from contributions. but 8 million dollars for consulting. WOW. whats wrong with this picture.

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- Keatonc33
  Posted on December 4, 2012 at 6:35pm
  Too much koch?
  
  Report this comment
- charles116
  Posted on December 4, 2012 at 11:45pm
  And Newt isn’t a lobbyist he’s a historian
  
  Report this comment
Gourdy
Posted on December 4, 2012 at 5:43pm
Whoa, what a nice golden parachute! I wonder how FreedomWorks gets all that $$$. I doubt the small donors knew that much was going to one “consultant.” Sweet deal for Armey.

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- Keatonc33
  Posted on December 4, 2012 at 6:34pm
  Look up the koch brothers. the fund freedom works..
  
  Report this comment
- Immental
  Posted on December 4, 2012 at 7:39pm
  im sorry about Keaton, he seems to have some illuminate impairment. To clarify, the Koch brothers are rich people, naturally idiots fear being rich.
  
  Report this comment
Keatonc33
Posted on December 4, 2012 at 5:42pm
8 million is nothing for those Koch bros.

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- FBT
  Posted on December 4, 2012 at 6:37pm
  It wouldn’t be much for George Soros either.
  
  What’s your point?
  
  Report this comment
- The-Real-Enrico
  Posted on December 4, 2012 at 9:06pm
  Damn those rich people and freedom of speech, right? I heard that people with money are able fund things and even donate money too! Look it up, bro.
  
  I even quit my job when I heard that I got money and could donate it to a cause of my choice too. I wasn’t be a apart of the free-market capitalist system, man!
  
  Yes this is sarcasm. (just for the dumbies on here)
  
  Report this comment
SimpleTruths
Posted on December 4, 2012 at 5:41pm
KICKAGRANDMA
Your so called “WE THE PEOPLE” is getting smaller and smaller by the day.

Maybe a better phrase would be “I THE PERSON”. I’m sure they’ll listen to you and give you what you want.

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- SkiboSR71
  Posted on December 4, 2012 at 6:44pm
  @Simpleton…..We don’t sweat the small stuff!!! You just run along and hide now hear!!! Because hell is coming to breakfast before to long. Best you be safe at home when it does…..
  
  Report this comment
MONICNE
Posted on December 4, 2012 at 5:39pm
Our group voted against Freedom Works years ago because they were an obvious exploitative and manipulative AstroTurf front for Corporatist Political outcomes. They didn’t listen to what we needed locally. Looks like somebody is finally on the right track – and now I might even invite them back!

T-E-A does NOT mean G-O-P.

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- benrush
  Posted on December 4, 2012 at 6:23pm
  EXACTOMUNDO.
  
  I sensed there was something wrong with them, couldn’t quite put my finger on it. Maybe I felt they too were in on the gag.
  
  Report this comment
bobbie22
Posted on December 4, 2012 at 5:39pm
Armey, who had been with the Tea Party group since its 2004 founding,?????????

explain. what tea party group

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- Conservative Christian
  Posted on December 4, 2012 at 6:35pm
  freedom works. duh
  
  Report this comment
ResistSocialism
Posted on December 4, 2012 at 5:35pm
bye dick

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- beenaroundyaknow
  Posted on December 4, 2012 at 6:20pm
  you mean bye dick–head
  
  Report this comment
NBP Maryland
Posted on December 4, 2012 at 5:31pm
We need total transparency on this ASAP.

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- kickagrandma
  Posted on December 4, 2012 at 5:36pm
  Agree. WE THE PEOPLE cannot and will not tolerate any more lies from any side, much less our own.
  
  This is sad news for GOD’s kids.
  
  PRAY ON, CHRISTIAN AMERICA.
  
  Report this comment
- Matt
  Posted on December 4, 2012 at 5:47pm
  I think I know what’s up. Arney want’s to sell his soul along with the rest of the GOP and turn the “Republican Party” into just another version of the “Democrat Party” because they “say” we can’t win elections with conservatism. Matt Kibbe and the rest of Freedomworks actually have integrity and want to stay true to their principles. That is my guess anyways.
  
  They all know that we can win elections without abandoning conservatism, we just have to do two things; win the media battle, which the GOP has intentionally let Liberals whoop them at over the last 12 years, and eliminate the platform principles that are inconsistent with real conservatism. It is internal corruption and a lack of effort that killed us this election, not the principles of freedom. The thing is that the GOP leaders don’t, and never have, wanted to actually be conservative because that means they can’t appease lobbyists. Rampant hypocrisy and allowing the left to demonize you is gonna lead to lost elections, no way round that.
  
  Report this comment
- truthnstuff
  Posted on December 4, 2012 at 6:24pm
  @Matt….I think you are right. After all Army while more conservative than liberal was, as I remember, more of a moderate. Let’s purge all the old bulls unless they have proven they did n ot, will not compromise.
  
  Report this comment

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