WASHINGTON — Eased out with an $8 million payout provided by an influential Republican fund-raiser, former GOP House majority leader Dick Armey says he has left the conservative Tea Party group FreedomWorks because of an internal split over the group’s future direction.
A confidential contract obtained by the Associated Press shows that 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 at both FreedomWorks and its sister organization, the FreedomWorks Foundation, by the end of November.
According to the contract, Armey’s consulting fees will be paid by Richard J. Stephenson, a prominent fund-raiser and founder of the Cancer Treatment Centers of America. Stephenson is on the board of directors of FreedomWorks.
Armey’s exit comes as a new sign of acrimony in conservative and Republican ranks as the party’s bruised leadership struggles with its November electoral losses and uncertainty over how to recast its principles and issues to compete with an ascendant Democratic Party.
Armey confirmed his departure Tuesday, saying that ‘‘my differences with FreedomWorks are a matter of principle.’’ Armey said he made the decision to quit FreedomWorks in August, but Stephenson and other board members urged him not to leave until after the election in November. Stephenson did not immediately respond to calls for comment.
Armey would not describe his specific concerns, but he told Mother Jones magazine that the Tea Party group was moving in an unproductive direction. He also indicated dissatisfaction with the election results, in which several GOP candidates supported by FreedomWorks super PAC donations were beaten by Democratic Party rivals.
In an internal Nov. 30 resignation memo published by Mother Jones, Armey told FreedomWorks chief executive Matt Kibbe to remove his ‘‘name, image and signature’’ from all the group’s materials and Web operations. Kibbe and other FreedomWorks officials were not immediately available for comment.
Armey, who had been with the Tea Party group since its 2004 founding, is a veteran Texas Republican Party political figure who was involved in the GOP’s conservative ‘‘Contract with America’’ congressional movement in the 1990s. While Armey, 72, was FreedomWorks’ cochairman and at first, its public face, Kibbe has been its most active official, appearing at the group’s public gatherings.
FreedomWorks flourished after a wave of Tea Party House candidates swept into office in 2010, but despite spending hundreds of thousands of dollars to back favored candidates in November, the group’s influence appeared to wane at the polls. Among the GOP losers supported by FreedomWorks in November were Senate candidates Josh Mandel in Ohio, Connie Mack in Florida, and Richard Mourdock in Indiana.
Overall, Tea Party-influenced House legislators fared better in the recent elections, though their ranks thinned. At least 83 of 87 members of the Tea Party-powered House GOP freshman class of 2010 ran for reelection in November. All but 11 of them were returned to office while a 12th, Representative Jeff Landry, Republican of Louisiana, faces an uphill runoff election this month.