Citizens for a Sound Economy Splits into FreedomWorks and Americans for Prosperity

Citizens for a Sound Economy (CSE), the Koch brothers-funded lobbying organization founded in 1984, officially splits into two separate entities following internal strategic disagreements. The 501(c)(4) advocacy activities continue under FreedomWorks (formed through a merger with Empower America), while the educational foundation becomes Americans for Prosperity Foundation. This organizational restructuring creates the primary infrastructure that will later orchestrate the Tea Party movement. Ron Paul served as the organization’s first chairman, and by 2002, CSE had already established the first Tea Party Movement website at usteaparty.com. The split allows the Koch network to expand their political influence through parallel organizations while maintaining strategic flexibility. David Koch would later state that Americans for Prosperity grew ‘beyond my wildest dreams’ into an ’enormous organization’ from its 2004 founding.