Illinois lawmakers would rather ensure that they get a piece of the stimulus pie than ensure that another Blago scandal doesn’t humiliate their state again.

Blago is laughing his helmet head off:

House lawmakers today begrudgingly voted to knock a hole in the new pay-to-play ethics law aimed at curbing Gov. Rod Blagojevich’s prolific fund-raising because Washington officials threatened to block federal dollars for roads and bridges.

The legislation, sent to the Senate on a 77-35 vote, would exempt transportation projects from the new law that prohibits businesses that have or seek state contracts worth more than $50,000 from donating to statewide officeholders who dole out the business. The fate of the legislation in the Senate is uncertain.

The move was ridiculed by opponents who questioned why the law is being watered down only days after the governor was impeached for allegations that included shaking down state contractors for campaign contributions.

Rep. John Fritchey (D-Chicago), the sponsor, acknowledged “it’s somewhat of a bitter pill” to change the ethics law inspired by Blagojevich’s frequent distribution of lucrative state contracts to big campaign donors.

But he said federal officials already have told Illinois the state could lose federal funding for projects because the ethics law potentially restricts who is eligible to bid for the business. Having fewer bidders could make projects cost more. State officials said the restriction could impact projects going to bid this month.

With Illinois hoping to take advantage of a federal stimulus package, the change must be made to ensure the state does not lose out on federal money, Fritchey said.

Rep. Bill Black (R-Danville) protested the change “doesn’t make a lot of sense” given the federal charges that Blagojevich tried to auction the U.S. Senate seat vacated by President-elect Barack Obama, who actually supported the Illinois law.

Further, Black feared the lawmakers will create a loophole that will spur a future “scandal.”

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