think-tank centrist wall-street corporate-democrat anti-progressive class-analysis
related: Goldman Sachs · PhRMA · Democracy Alliance
Who They Are
Third Way is a 501(c)(4) advocacy organization founded in 2005 by Jonathan Cowan, Matt Bennett, Jim Kessler, and Nancy Hale — all former Clinton administration staffers. Headquartered at 1025 Connecticut Ave NW, Suite 400, Washington, D.C., it describes itself as a “center-left” think tank advocating for “modern” Democratic policies. In practice, it functions as Wall Street’s policy shop inside the Democratic Party, systematically opposing progressive economic proposals while providing intellectual cover for corporate-friendly centrism.
Third Way reported $31.7 million in revenue and $24.5 million in expenses in fiscal year 2024, with net assets of $58.7 million. Revenue has nearly tripled since 2016 ($10.4M → $31.7M), reflecting a massive expansion as progressive challenges to the Democratic establishment intensified. The organization operates as a 501(c)(4), meaning its donors are not publicly disclosed — a critical structural feature for an organization funded by Wall Street that claims to represent the Democratic mainstream.
Jonathan Cowan serves as president ($413K in salary and benefits), having previously been Chief of Staff at HUD under Secretary Andrew Cuomo. Co-founders Matt Bennett (Executive VP of Public Affairs, $379K) and Jim Kessler (Executive VP of Policy, $377K) round out a leadership troika that has remained unchanged since founding. The total executive compensation for top officers exceeded $1.4 million in 2024.
Third Way’s board of trustees is the tell. Of approximately 29 trustees, roughly 20 come from finance — private equity, hedge funds, and investment banking dominate. The board is chaired by Rachel Pritzker (of the Pritzker billionaire family), succeeding John Vogelstein (former vice chairman of Warburg Pincus). Other trustees include William Daley (former Commerce Secretary, JPMorgan Chase Midwest chairman), David Coulter (former BankAmerica CEO), David Heller (former Goldman Sachs partner), and Derek Kaufman (Citadel Securities). This is not a board that represents Democratic voters — it represents Democratic donors.
Third Way also operates through two affiliated entities: the Third Way Institute (a 501(c)(3) that received a $19.8M grant from Third Way in 2023) and the Third Way Foundation. All share staff and address.
Who Funds Them
As a 501(c)(4), Third Way is not required to publicly disclose its donors — the same dark money structure that Democrats frequently criticize when used by conservative organizations. What is known comes from investigative reporting, leaked documents, and traceable grants.
Wall Street / Finance:
- Goldman Sachs: $850,000 via Goldman Sachs Gives (2010-2011)
- Board trustees from: Warburg Pincus, Citadel Securities, BankAmerica, JPMorgan Chase, and numerous private equity and hedge fund firms
- Peck Madigan Jones (fundraising lobbyist paid by Third Way) lobbies for MasterCard, Deutsche Bank, and the International Swaps and Derivatives Association
Pharmaceutical / Healthcare:
- PhRMA: funding documented by The Intercept (2019), used to oppose Medicare for All
- Amgen, CVS Health, Baxter International: corporate donors documented by CMD/PR Watch
Energy / Utilities:
- Entergy, Pacific Gas & Electric, Public Service Enterprise Group: documented corporate donors — all entities that would be threatened by the Green New Deal
Dark Money / Pass-Through:
- Arabella Advisors network: North Fund ($10,000) and Sixteen Thirty Fund ($221,135) in 2023
- Business Roundtable: $25,000 (2023)
Revenue Trajectory (501(c)(4) entity only):
| Fiscal Year | Revenue | Expenses | Net Assets |
|---|---|---|---|
| 2024 | $31.7M | $24.5M | $58.7M |
| 2023 | $27.2M | $21.3M | $50.0M |
| 2022 | $27.4M | $23.1M | $40.4M |
| 2021 | $24.1M | $18.4M | $42.5M |
| 2020 | $18.4M | $15.5M | $33.4M |
| 2019 | $16.2M | $14.0M | $27.3M |
| 2018 | $3.3M | $11.2M | $22.7M |
The 2018 revenue collapse ($3.3M vs. $11.2M in expenses) coincided with the progressive insurgency within the Democratic Party — Alexandria Ocasio-Cortez’s primary win, Bernie Sanders’ continued influence. Third Way was spending far more than it took in, drawing down reserves to fight the progressive wave. Revenue recovered dramatically by 2019-2020, suggesting a major donor mobilization in response to the progressive threat.
What They Produce
Third Way’s output is distinctive: it produces very little original policy research compared to organizations like CBPP or Brookings. Instead, it produces political strategy disguised as policy analysis — messaging documents, polling memos, and op-eds designed to move the Democratic Party rightward on economic issues.
1. Anti-Progressive Messaging: Third Way’s core product is arguments against progressive economic proposals. Their 2013 Wall Street Journal op-ed attacking Elizabeth Warren and Bill de Blasio’s “economic populism” as “a dead end for Democrats” was a landmark moment that revealed the organization’s primary function. They have systematically attacked Medicare for All, the Green New Deal, free college, and wealth taxes.
2. “Electability” Framing: Third Way produces polling and electoral analysis arguing that progressive candidates lose elections. Their recurring “Winning the Middle” conferences convene moderate Democratic officials, pundits, and donors specifically to block progressive nominees in 2028.
The 2025 “Comeback Retreat” — Post-Election Realignment Operation:
Within weeks of Trump’s January 2025 inauguration, Third Way organized the “Comeback Retreat,” a conference that rapidly became the most visible post-election push to move the Democratic Party rightward. The event produced a summary document describing how Democrats can reconnect with working-class voters — but its substance, as documented by multiple left outlets, was almost entirely defined in opposition to the progressive wing of the party, not in opposition to Trump. Executive VP Jim Kessler’s address (“The Indispensable Middle”) derided progressive activists as “a village of elitists who are out of touch with regular people.” The March 2026 Charleston “Winning the Middle” event continued this operation. Critics across the political spectrum — CounterPunch, Daily Kos, Common Dreams — characterized the retreat as “pushing Democrats towards Trumpism” by preemptively conceding the working-class political terrain rather than offering a program to win it back.
Contradiction
Third Way organized a “Comeback Retreat” in early 2025 — weeks after Trump’s inauguration — to chart the Democratic Party’s path back to power. Its primary prescription: attack progressives. The event spent more energy defining Democrats against their own left flank than defining them against the Trump administration that had just seized power. This is the structural function made explicit: Third Way’s Wall Street funders don’t need Democrats to beat Trump — they need Democrats to contain the left. The “comeback” is not from Trump but from the threat of economic progressivism.
3. Clean Energy (Within Corporate Boundaries): Third Way’s clean energy program is its most substantive policy work, advocating for nuclear energy and carbon capture — technologies favored by energy corporations over more disruptive renewables. Senior VP Joshua Freed ($295K salary) leads this work.
4. Grant-Making to Aligned Organizations: In 2023, Third Way distributed grants including $250,000 to NewDEAL Forum, $200,000 to the National Urban League, $100,000 to the Bipartisan Policy Center, and $100,000 to Smart Growth America — building a network of aligned centrist organizations.
The Policy Pipeline
Third Way’s pipeline is negative rather than constructive: it doesn’t create policy so much as it kills progressive policy proposals before they can gain momentum within the Democratic Party.
Donation-to-Policy Timeline
| Date | Recipient/Target | Amount | Policy Return | Time Gap |
|---|---|---|---|---|
| 2010-2011 | Third Way operations | $850K (Goldman Sachs) | Provided “center-left” cover for opposing financial regulation, Dodd-Frank weakening | Immediate |
| 2013 Dec | WSJ op-ed platform | Organizational budget | Kessler/Cowan WSJ op-ed attacking Warren/de Blasio “economic populism” — signaling Wall Street donor class that Third Way would police the party’s left flank | Immediate |
| 2017-2019 | Medicare for All opposition | PhRMA + corporate donors | Third Way produced counter-messaging against M4A; co-founder Bennett called it “irrelevant at best, at worst a serious distraction” — provided Democratic electeds cover to oppose single-payer | Immediate |
| 2019 | Green New Deal opposition | Utility company donors (Entergy, PG&E, PSEG) | Third Way promoted nuclear/carbon capture as “pragmatic” alternatives, framing GND as unrealistic — aligned with donor interests in existing energy infrastructure | Immediate |
| 2020 Jan | Sanders Iowa opposition | Corporate donor base | Third Way deployed staff to Iowa to attack Sanders’ candidacy before the caucus — documented by CMD | Immediate |
| 2021 | Biden DOD | Staff placement | Mieke Eoyang (Third Way VP, National Security) → Deputy Assistant Secretary of Defense for Cyber Policy | Direct placement |
| 2021-2024 | Biden legislative agenda | Corporate donor base | Third Way claimed credit for “rescuing” Obamacare, supporting infrastructure bill — but opposed progressive elements of Build Back Better | Ongoing |
| 2025 Feb | ”Comeback Retreat” (post-Trump inauguration) | $31.7M org budget | Organized weeks after Trump’s Jan 2025 inauguration; event defined Democratic strategy almost entirely against progressives, not Trump; Kessler attacked progressive activists as “a village of elitists” — Wall Street’s blocking operation re-activated immediately | Immediate |
| 2026 Mar | ”Winning the Middle” conference | Donor/trustee funded | Charleston SC event continuing the progressive containment operation; convening moderate Democrats to strategize blocking progressive 2028 presidential nominee | 1 year into Trump 2.0 |
Money
Third Way’s financial model is unique among think tanks: Wall Street donors fund an organization that produces no substantial original research but instead functions as an internal opposition shop within the Democratic Party. The $850K from Goldman Sachs didn’t purchase a policy paper — it purchased a permanent mechanism to police the Democratic Party’s economic boundaries and ensure that Wall Street-friendly centrism remained the party’s default position. The ROI is measured not in policies enacted but in progressive policies killed.
The Revolving Door
Third Way’s revolving door runs through Clinton and Obama/Biden era Democratic politics:
Jonathan Cowan (President):
- Chief of Staff, HUD under Secretary Andrew Cuomo (Clinton admin)
- Founded Third Way (2005)
- Clinton HUD → permanent think tank president
Nancy Hale (Co-Founder, SVP until 2018):
- Clinton administration official
- Co-founded Third Way (2005)
- Departed 2018 with $516K severance year
Mieke Eoyang (VP, National Security):
- Chief of Staff to Rep. Anna Eshoo (D-CA)
- Staff Director, House Intelligence Committee
- Third Way VP for National Security (2014-2021, $190K)
- Deputy Assistant Secretary of Defense for Cyber Policy, Biden DOD (2021-2025)
- Congressional staff → think tank → Pentagon — carrying Third Way’s defense policy positions into government
William Daley (Trustee):
- Secretary of Commerce (Clinton admin)
- White House Chief of Staff (Obama admin, 2011-2012)
- JPMorgan Chase Midwest Chairman
- Third Way trustee
- Cabinet → Wall Street → think tank board — the classic trilateral revolving door
Thurgood Marshall Jr. (Trustee):
- Cabinet Secretary and Assistant to President Clinton
- Third Way trustee
- White House staff → think tank board
Contradiction
Third Way positions itself as representing the pragmatic center of the Democratic Party, yet its revolving door runs exclusively through finance and Democratic establishment positions. No Third Way alumnus has entered government from a labor, community organizing, or public interest background. The revolving door reveals who Third Way actually serves: the financial sector donors who sit on its board.
What Their Funders Got
Third Way’s Wall Street funders receive a specific, measurable return: the systematic neutralization of progressive economic proposals within the Democratic Party.
Specific Returns:
-
Medicare for All Blocked: PhRMA and healthcare donors funded Third Way’s opposition to single-payer healthcare. Medicare for All never received a floor vote despite majority Democratic support in polls. Third Way provided “center-left” cover for Democrats to oppose it without appearing to side with the insurance industry.
-
Green New Deal Marginalized: Energy utility donors (Entergy, PG&E, PSEG) funded Third Way’s promotion of nuclear and carbon capture as alternatives to the GND. The GND framework was sidelined in favor of the more corporate-friendly Inflation Reduction Act approach — which included massive subsidies to the energy industry.
-
Social Security Privatization Cover: Third Way has advocated for “entitlement reform” including means-testing Social Security and raising the retirement age — positions that would benefit Wall Street firms seeking to manage private retirement accounts. As documented by Truthout, with 20 of 29 trustees from finance, Third Way is functionally “run by Wall Street for Wall Street” on retirement policy.
-
Warren/Sanders Containment: Third Way’s explicit 2013 WSJ op-ed attack on Elizabeth Warren and its 2020 anti-Sanders Iowa operation demonstrate direct donor-funded efforts to prevent progressive candidates from gaining party power. The 2026 “Winning the Middle” conference continues this function for 2028.
-
Dodd-Frank Weakening: During financial reform debates, Third Way provided “center-left” arguments for watering down Wall Street regulation — serving its Goldman Sachs donors while maintaining Democratic Party credibility.
Class Analysis
Third Way is the clearest example in this vault of idea laundering by the donor class within the Democratic Party. Its structural function is not to produce policy but to establish and enforce the boundaries of acceptable Democratic economic discourse — boundaries set by its Wall Street board of trustees.
The organization’s 501(c)(4) tax status is structurally essential: it allows donor anonymity. Goldman Sachs, PhRMA, and energy utilities can fund an organization that attacks progressive Democratic proposals without their names appearing on the checks. This is precisely the dark money structure that Democrats campaign against — deployed in service of corporate Democratic centrism.
The “centrist” label is itself the product being sold. Third Way manufactures the appearance of a moderate Democratic consensus that happens to align perfectly with Wall Street preferences: no single-payer healthcare (preserves insurance industry profits), no Green New Deal (preserves fossil fuel/utility business models), “entitlement reform” (opens retirement savings to Wall Street management fees), and opposition to progressive candidates (preserves the donor class’s preferred personnel in government).
The 2018 financial crisis is revealing: when progressive energy peaked within the party, Third Way spent $11.2M against only $3.3M in revenue — burning reserves to contain the threat. Donors then replenished the war chest, tripling revenue by 2024. This is not the behavior of a think tank responding to intellectual demand. This is a political operation executing a counter-offensive funded by its beneficiaries.
The March 2026 “Winning the Middle” conference in Charleston makes the function explicit: convening donors, strategists, and moderate officials to block a progressive presidential nominee in 2028. Third Way doesn’t hide that it exists to police the Democratic Party’s left boundary. It just calls it “pragmatism.”
Money
Third Way is Wall Street’s embassy inside the Democratic Party. Its $31.7M annual budget purchases not policy research but political containment — ensuring that the party of working people never actually threatens the interests of the financial class that funds it. The 20-of-29 finance trustees don’t advise on policy; they set the boundaries of what policy is permissible. Every progressive proposal killed by “center-left” opposition generates returns for donors who never have to attach their names to the kill.
Sources
- ProPublica Nonprofit Explorer: Third Way, Form 990 data (EIN 20-1734070) (Tier 1)
- Wikipedia: Third Way (United States) (Tier 3)
- InfluenceWatch: Third Way (Tier 3)
- OpenSecrets: Third Way profile (Tier 1)
- The Nation: GOP Donors and K Street Fuel Third Way’s Advice for the Democratic Party (Lee Fang) (Tier 2)
- The Intercept: PhRMA Is Funding a Think Tank to Derail Medicare for All (2019) (Tier 2)
- Truthout: Wall Street Uses the Third Way to Lead Its Assault on Social Security (Tier 2)
- CMD/EXPOSEDbyCMD: Centrist Third Way, Funded by Corporate Interests, Attacks Sanders in Iowa (2020) (Tier 2)
- American Prospect: Centrists: Better Things Aren’t Possible (March 2026) (Tier 2)
- DOD Biography: Mieke Eoyang, Deputy Assistant Secretary of Defense for Cyber Policy (Tier 1)
- Washington Post: Think Tank’s Criticism of Elizabeth Warren’s Populist Policies Leads to Democratic Feud (Tier 2)
- Politico: Warren Takes Sides in Dem Feud (Tier 2)
- SourceWatch: Third Way (Tier 3)
- Jacobin: The Centrist Think Tank Third Way Just Can’t Quit Austerity — COVID relief checks opposition (2021) (Tier 2)
- New Republic: ThinkProgress Was Always Doomed — structural analysis of CAP/Third Way donor-class dynamics (2019) (Tier 2)
- Daily Kos: Meet the anti-progressive think tank pushing Democrats towards Trumpism — Comeback Retreat analysis (March 2025) (Tier 2)
- CounterPunch: The Return of Regressive Third Way Politics to the Democrats (March 2025) (Tier 2)
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