DeLay became a leading voice for reduced Social Security and capital gains taxes, for the protection of business and free trade, and for deregulation in many areas of American life. He also expressed opposition to gun control while leading attacks on various aspects of modern culture, indicting such perceived evils as birth control, evolutionary theory, and day care. During the Lewinsky scandal, he led the successful effort to impeach President Bill Clinton, and he worked behind the scenes to orchestrate demonstrations opposing a recount in Florida in the 2000 presidential election. DeLay became House majority leader in 2003. In 2005 he was charged with conspiracy to circumvent Texas restrictions on campaign contributions and money laundering; because of the indictment he temporarily resigned the majority leader's post. The circumvention charge was subsequently dismissed, but in 2006, under pressure, he made his resignation as majority leader permanent and subsequently resigned from Congress. His No Retreat, No Surrender (2007) is a combination of autobiography, manifesto, and attack on his presumed political enemies.
DeLay publicly denied the charges, saying that the actions of Earle, a Democrat, have partisan motivations. After DeLay moved to dismiss all charges, trial judge Pat Priest dismissed one count of the indictment, which alleged conspiracy to violate election law. However, Judge Priest denied DeLay's motion to dismiss the more serious charges of money laundering and conspiracy to engage in money laundering, and the prosecution is proceeding on those charges.
In 2001 the Texas Legislative Redistricting Board (a panel composed of the state's Lieutenant Governor, Comptroller, Speaker of the House, Attorney-General, and Land Commissioner) redrew state legislative districts in accordance with the census. The new map that was adopted by the Republican-dominated board gave the GOP an edge in winning the Texas House of Representatives, still controlled at that time by the Democrats. During the 2002 elections under these new maps, DeLay aggressively raised money for Republican candidates under TRMPAC.
In October 2002, Texans for a Republican Majority made contributions, through several channels, to Nelson Balido of San Antonio ($2,000), Byron Cook of Corsicana ($2,000), Wayne Christian of Center ($2,000), Rick Green of Dripping Springs ($2,000), and Eddie Shauberger of Liberty ($2,000), among others. It has since been alleged that TRMPAC was used to funnel illegal corporate donations into the campaigns of Republican candidates for State Representative.
The GOP victories in 2002 resulted in their control of the Texas House in addition to the Senate. As a result, the Texas Legislature was called into session in 2003 to redistrict the state's congressional lines in favor of the Republican Party. A number of Democrats left the state, going to Oklahoma, and later New Mexico, to deny a quorum for voting. Helen Giddings, the recognized negotiator, was arrested in May 2003, but later the arrest was called a mistake. The political police dragnet was at taxpayer expense. Texas House Speaker Craddick apologized to Giddings and then ordered the Sergeant at Arms to incarcerate Giddings in the state capital buildings.
On May 26 2005, a Texas judge ruled that a committee formed by DeLay had violated state law by not disclosing over $600,000 worth of fundraising money, mostly from the credit card industry, including $25,000 from Sears, Roebuck & Co., and $50,000 from Diversified Collections Services of San Leandro. Some of the money was spent on manning phone banks and posting wanted posters on Federal Highways calling for the arrest of Democratic legislators with an 800 number to the Texas Department of Public Safety to call if seen after the Democratic caucus left for Oklahoma in order to prevent the redistricting legislation from passing. The Federal Highway Administration offered to cooperate in arresting the Democrats, forcing the Democrats to travel to Oklahoma by plane instead of by automobile. Five Texas congressional seats changed hands from Democrats to Republicans during the 2004 election, in part because of the new redistricting.
On October 6 2004, the House Ethics Committee unanimously admonished DeLay on two counts. The first count stated that DeLay "created the appearance that donors were being provided with special access to Representative DeLay regarding the then-pending energy legislation." The second count said that DeLay "used federal resources in a political issue" by asking the Federal Aviation Administration and Justice Department to help track Texas legislators during the battle over Texas redistricting. At the time of the latter admonishment, the House Ethics committee deferred action on another count related to fundraising while that matter was subject to state criminal action. That state investigation eventually led to the felony indictment on September 28 2005.
In 2005, the Federal Elections Commission audited ARMPAC, DeLay's political action committee. The FEC found that ARMPAC had failed to report $322,306 in debts owed to vendors, and that it had incorrectly paid for some committee expenses using funds from an account designated for non-federal elections. The FEC also found that ARMPAC had misstated the balances of its receipts and ending cash-on-hand for 2001, and of its receipts, disbursements, and beginning and ending cash-on-hand for 2002. ARMPAC corrected the omission of the debts in amended reports, and is reviewing the portion of the audit dealing with incorrect payment for expenses.
Earle, a Democrat, has indicted some Democratic office-holders in Texas but has mainly gone after Republicans, including an unsuccessful 1993 investigation of Republican Sen. Kay Bailey Hutchison on charges of official misconduct and records tampering.
The indictment charges that DeLay, Colyandro and Ellis conspired to pass corporate contributions to candidates for the Texas legislature in violation of Texas campaign finance law. Allegedly, several corporations (such as Diversified Collection Services and Sears Roebuck) made contributions to TRMPAC. The indictment charged that TRMPAC then sent a check for $190,000 to the Republican National Committee, made payable to "RNSEC" (the Republican National State Elections Committee), along with a list of state-level Republican candidates who should receive the money. According to the indictment, the Republican candidates in Texas did in fact receive the money so designated.
A Travis County, Texas, grand jury issued the indictment. Grand jury foreman William Gibson said that there were "stacks and stacks" of evidence, and, "As far as we're concerned, they presented us enough evidence and witnesses that we felt we were on the right track. I would not have put my name on that grand-jury indictment unless I felt we had ample probable cause. Gibson told KLBJ Radio in an interview that his decision to indict Tom DeLay was based on news stories that the Texas Association of Business mailings against candidate James Spencer, a friend of his, were coordinated with TRMPAC.
Earle's investigation of DeLay is the subject of a documentary, The Big Buy: Tom DeLay's Stolen Congress. The filmmakers went to cover the 2003 Texas redistricting battle but eventually focused primarily on the grand jury investigation. Earle cooperated with the documentarians but DeLay repeatedly refused to meet with them.
Because of Republican party rules regarding leadership and indictments, DeLay stepped down from his position as House Majority Leader. Serving his last day on June 9 2006, Delay stepped down, "to pursue new opportunities to engage in the important cultural and political battles of our day from an arena outside of the U.S. House of Representatives. White House spokesman Scott McClellan commented by saying that President Bush still viewed DeLay as "a good ally, a leader who we have worked closely with to get things done for the American people." On January 7 2006, DeLay announced that he would not seek to return to his position as Majority Leader.
DeLay's lawyers have asserted that there are various problems with the indictments. On October 3 2005, DeLay's lawyers filed a motion to get the indictment of conspiracy to violate election law thrown out as fraudulent, claiming it was a violation of the U.S. Constitution's ban on ex-post facto applications of law. DeLay's lawyers claim that, in 2002, the crime of conspiracy did not apply to Texas election law. However, George Dix, a professor of law at the University of Texas at Austin, believes that charges of criminal conspiracy could legally be applied to any felony (including violation of election law) committed prior to the 2003 law, and characterised the 2003 change cited by DeLay's lawyers as a clarification of existing law, stating "It isn't unheard of — the Legislature passing a law to make clear what the law is."
While the Texas Penal Code defines laundered money only as money gained as the "proceeds of criminal activity," DeLay's lawyers maintain the corporate donations came from normal and legal business activity.
DeLay and two Republican fundraisers are still awaiting trial.