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House Committee Opens Investigation into Postmaster General for Alleged Campaign Finance Violations

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  • The head of the House Oversight Committee announced an investigation into Postmaster General Louis DeJoy over alleged campaign finance violations and whether or not he lied to Congress under oath concerning the matter.
  • The investigation comes after The Washington Post reported that numerous employees of DeJoy’s former business, New Breed Logistics, said DeJoy pressured them into making political donations to Republican campaigns and reimbursed them with bonuses, which is illegal.
  • Campaign finance records show that many employees had never donated before they worked for DeJoy and stopped donating after his company was acquired in 2014.
  • Multiple people also said that the donations allowed DeJoy and his wife to rise in the ranks of the GOP, which eventually lead to him becoming Postmaster General.

Investigation

Rep. Carolyn Maloney (D-Ny.) announced Monday that the House Committee on Oversight and Reform, which she chairs, is launching an investigation into Postmaster General Louis DeJoy following reports that he pressured former employees into donating to his preferred Republican candidates and reimbursed them with bonuses.

The allegations were first published by The Washington Post on Sunday, which reported that five employees of DeJoy’s former business, New Breed Logistics, said that he and his aides urged them to “write checks and attend fundraisers” at his mansion in North Carolina, where “events for Republicans running for the White House and Congress routinely fetched $100,000 or more apiece.”

That practice on its own is not illegal, but two other employees “familiar with New Breed’s financial and payroll systems” also told The Post that DeJoy “would instruct that bonus payments to staffers be boosted to help defray the cost of their contributions, an arrangement that would be unlawful.”

One of the employees who spoke to The Post was David Young, the company’s longtime director of human resources, who reportedly had access to payroll records at New Breed from the late 1990s to 2013.

“Louis was a national fundraiser for the Republican Party,” Young said. “He asked employees for money. We gave him the money, and then he reciprocated by giving us big bonuses. When we got our bonuses, let’s just say they were bigger, they exceeded expectations — and that covered the tax and everything else.”

Several employees also told the outlet that New Breed “often distributed large bonuses of five figures or higher.”

Alleged Pressure

Young additionally told The Post that no employees were “ever forced to or lost a job because they didn’t,” but if they did contribute, “their raises and their bonuses were bumped up to accommodate that.”

To that point, some employees told The Post that they were happy to make the donations, like Ted Le Jeune, a New Breed project manager.

“I was of the same political orientation, so it was not coerced in any way and there was no quid pro quo,” he said.

However, according to the report, other employees “said they felt little choice, saying DeJoy had a heavy-handed demeanor and a reputation for angering easily.” 

One plant manager named Steve Moore told the outlet that he felt pressured to contribute to the campaign of former New York Mayor Rudy Giuliani — who was running for president at the time — just a few months after he started a job New Breed. 

According to Moore, his manager told him that making a contribution was “highly recommended,” even if he did not attend the event DeJoy was hosting for Giuliani.

“I took that to mean my job is on the line here, or things won’t go smooth for me here at New Breed if I didn’t contribute,” he said. “I didn’t really agree with what was going on.” 

Other employees also told The Post that DeJoy and his aides “made clear that he wanted employees to support his endeavors — through emails inviting employees to fundraisers, follow-up calls and visits to staffers’ desks.”

DeJoy’s GOP Rise

Regardless of whether or not there was pressure, DeJoy’s alleged efforts were highly effective. In an analysis of federal and state campaign finance records, The Post found “a pattern of extensive donations by New Breed employees to Republican candidates, with the same amount often given by multiple people on the same day.”

From 2000 and 2014, 124 individuals who worked for the company collectively gave more than $1 million to federal and state Republican candidates. During the same period, just nine employees gave a combined $700 to Democratic candidates.

That timeline is relevant for a few reasons. First of all, as The Post explains, many of the people who made those contributions had not donated to political campaigns before joining New Breed, and many have not made any more contributions since leaving the company.

The outlet also noted that the donations slowed significantly after New Breed was acquired by the Connecticut-based company XPO Logistics in 2014.

In fact, according to campaign finance records, a year after the sale: “several New Breed employees who had stayed on with XPO were giving significantly smaller political contributions and many stopped making them altogether.”

But that is not the only reason this timeline of events is significant. Many people have also indicated that those fundraising efforts allowed DeJoy and his wife to cement their status and rise in the ranks of the Republican Party.

“Multiple New Breed employees said DeJoy’s ascent in Republican politics was powered in part by his ability to multiply his fundraising through his company, describing him as a chief executive who was single-minded in his focus on increasing his influence in the GOP,” The Post reported, adding that several employees said, “DeJoy reveled in the access his fundraising afforded him.”

As DeJoy’s efforts continued, his wife, Alonda Wos, began receiving political appointments, first as an ambassador to Estonia in 2004 under President George W. Bush, and then as head of North Carolina’s health and human services agency in 2013.

When President Donald Trump took office, Wos was appointed to serve on the president’s commission on White House fellowships in 2017. Earlier this year, Trump also nominated her to be ambassador to Canada.

While testifying before a House Oversight panel last month, DeJoy was explicitly asked if he had repaid executives for contributions to Trump’s campaign, and he forcefully denied doing so.

“That’s an outrageous claim, sir, and I resent it,” he said. “The answer is no.”

Response

That question was specifically related to Trump, and not the new allegations that have surfaced. As noted earlier, DeJoy’s tenure as the CEO of New Breed ended with its acquisition in 2014 — before Trump announced he was running for president.

However, in her statement announcing the investigation, Rep. Maloney said that DeJoy faces “criminal exposure” not only if the allegations that he gave bonuses to people who made political donations turn out to be true, “but also for lying to our committee under oath.” 

Maloney also urged the Board of Governors of the U.S. Postal Service to immediately suspend DeJoy, who she claimed “they never should have hired in the first place.”

Even if he did not perjury himself, some Democrats have argued that these allegations just further contribute to a questionable narrative about DeJoy and his leadership as Postmaster General.

Many Democrats and other critics have accused DeJoy — who personally donated over $1.1 million to Trump’s reelection campaign — of being a Trump crony. He’s been accused of actively trying to prevent the postal service from working effectively and trying to create distrust in the system before the election to line up with Trump’s attacks on both USPS and mail-in voting.

DeJoy has denied those claims, and in a statement to The Post, his personal spokesman, Monty Hagler, said that DeJoy “was never notified by the New Breed employees referenced by the Washington Post of any pressure they might have felt to make a political contribution, and he regrets if any employee felt uncomfortable for any reason.”

Hagler also said that DeJoy “sought and received legal advice” to ensure that he and his employees “complied with any and all laws.”

According to The Post, despite being repeatedly asked, Hagler “did not directly address the assertions that DeJoy reimbursed workers for making contributions.” 

Very notably, when asked during a press conference Monday if he supported the investigation into DeJoy, Trump said, “Sure, sure, let the investigations go.” When asked if he would support DeJoy’s removal if he is found to have committed wrongdoing, Trump responded, “sure.”

Federal violations of the nature DeJoy is being accused of have a five-year statute of limitations, but there is no statute of limitations in North Carolina for felonies, including for campaign finance violations. 

See what others are saying: (The Washington Post) (Forbes) (CNN)

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Judges Uphold North Carolina’s Congressional Map in Major GOP Win

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The judges agreed that the congressional map was “a result of intentional, pro-Republican partisan redistricting” but said they did not have the power to intervene in legislative matters.


New Maps Upheld

A three-judge panel in North Carolina upheld the state’s new congressional and legislative maps on Tuesday, deciding it did not have the power to respond to arguments that Republicans had illegally gerrymandered it to benefit them.

Voting rights groups and Democrats sued over the new maps, which were drawn by the state’s Republican legislature following the 2020 census.

The maps left Democrats with just three of North Carolina’s 14 congressional seats in a battleground state that is more evenly split between Republicans and Democrats. Previously, Democrats held five of the 13 districts the state had before the last census, during which North Carolina was allocated an additional seat.

The challengers argued that the blatantly partisan maps had been drawn in a way that went against longstanding rules, violated the state’s Constitution, and intentionally disenfranchised Black voters.

In their unanimous ruling, the panel — composed of one Democrat and two Republicans — agreed that both the legislative and congressional maps were “a result of intentional, pro-Republican partisan redistricting.”

The judges added that they had “disdain for having to deal with issues that potentially lead to results incompatible with democratic principles and subject our state to ridicule.”

Despite their beliefs, the panel said they did not have a legal basis for intervening in political matters and constraining the legislature. They additionally ruled that the challengers did not prove their claims that the maps were discriminatory based on race.

Notably, the judges also stated that partisan gerrymandering does not actually violate the state’s Constitution. 

The Path Ahead

While the decision marks a setback to the plaintiffs, the groups have already said they will appeal the decision to the North Carolina Supreme Court.

The state’s highest court has a slim Democratic majority and has already signaled they may be open to tossing the map.

There are also past precedents for voting maps to be thrown out in North Carolina. The state has an extensive history of legal battles over gerrymandering, and Republican leaders have been forced to redraw maps twice in recent years.

A forthcoming decision is highly anticipated, as North Carolina’s congressional map could play a major role in the control of the House in the 2022 midterm elections if they are as close as expected. 

See what others are saying: (Politico) (The New York Times) (The Wall Street Journal)

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Biden Administration Says Private Insurers Will Have to Cover 8 At-Home Tests a Month

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The policy will apply to all the nearly 150 million Americans who have private insurance.


New At-Home Testing Policy

The Biden administration announced Monday that private health insurers will now be required to pay for up to eight at-home rapid tests per plan member each month.

Under the new policy, starting Saturday, private insurance holders will be able to purchase any at-home test approved by the FDA at a pharmacy or online. They will either not be asked to pay any upfront costs or be reimbursed for their purchase through their provider.

The move is expected to significantly expand access to rapid tests that other countries have been distributing to their citizens free of charge for months. 

According to reports, nearly 150 million Americans — about 45% of the population — have private insurance. 

Each dependent enrolled on the primary insurance holder’s account is counted as a member. That means a family of four enrolled on a single plan would be eligible for 32 free at-home rapid tests a month.

Potential Exemptions

All tests may not be fully covered depending on where they are purchased. 

In order to help offset costs, the Biden administration is incentivizing insurance providers to establish a network of “preferred” pharmacies and stores where people in the plan can get tests without paying out of pocket.

As a result, health plans that do create those networks will only be required to reimburse up to $12 per test if they are purchased out of that network, meaning people could be on the hook for the rest of the cost.

If an insurer does not set up a preferred network, they will have to cover all at-home tests in full regardless of the place of purchase.

During a briefing Monday, Press Secretary Jen Psaki said tests should be “out the door in the coming weeks.”

“The contracts [for testing companies] are structured in a way to require that significant amounts are delivered on an aggressive timeline, the first of which should be arriving early next week,” she added.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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Biden Administration Unveils Plan To Replace All Lead Pipes

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The effort builds on the $15 billion allocated under the bipartisan infrastructure bill for lead pipe replacement, but industry leaders say $60 billion will be needed for nationwide revitalization.


White House Outlines Actions on Lead Pipes and Paint

The Biden administration rolled out a sweeping plan on Thursday to remove all the nation’s lead pipes over the next decade and take other steps to prevent lead paint contamination.

Lead, which was commonly used in piping for municipal water systems all over the country until it was banned in 1978, is a dangerous neurotoxin that can cause serious nervous system damage, especially in children.

Contamination from lead pipes seeping into water supplies has caused multiple high-profile public health and environmental catastrophes over the last decade, including the notorious crisis in Flint, Michigan.

According to a White House factsheet, an estimated 10 million households are connected to water through lead pipes. Children and teenagers in 400,000 schools and child care facilities also risk exposure to lead-contaminated water.

“Because of inequitable infrastructure development and disinvestment, low-income communities and communities of color are disproportionately exposed to these risks,” the factsheet stated.

To address those disparities and revitalize water systems across the nation, the White House outlined 15 new action items the Biden administration is taking, including:

  • Launching “a new regulatory process to protect communities from lead in drinking water” through the Environmental Protection Agency (EPA).
  • Clarifying that state, local, and Tribal governments can use the $350 billion aid allocated under the American Rescue Plan to replace lead service lines.
  • Establishing federally-operated regional technical assistance hubs “to fast track lead service line removal projects in partnership with labor unions and local water agencies.”
  • Awarding federal grants through the Department of Housing and Urban Development (HUD) to remove lead paint in low-income communities.
  • Directing the Centers for Disease Control and Prevention (CDC) to expand childhood lead testing.
  • Establishing “a new Cabinet Level Partnership for Lead Remediation in Schools and Child Care Centers.”

The White House also said it will direct the EPA to allocate $3 billion for state, local, and Tribal governments to replace lead pipes through funding that was approved under the bipartisan infrastructure bill signed by President Joe Biden last month.

A Matter of Funding

In total, Congress provided $15 billion to revitalize the nation’s lead-pipe systems under the infrastructure bill. 

However, industry experts have estimated that it will cost $60 billion to entirely overhaul all the remaining lead pipes in the U.S.

As a result, the Biden administration has proposed several additional funding mechanisms in the social safety net package, known as the Build Back Better Act, that is currently being negotiated by Congress.

Specifically, the legislation would set aside $9 billion for lead remediation grants to disadvantaged communities, $1 billion for rural water utilities to remove lead pipes, and $5 billion for mitigation efforts such as removing lead-based water fixtures in low-income households.

The Build Back Better Act would additionally provide $65 billion for public housing agencies and $5 billion for other federally-assisted housing organizations to improve housing quality, including by replacing lead pipes and service lines.

The status of that legislation, as well as what provisions will remain in the final version, remain in limbo. While Democratic leadership has pushed to pass the sweeping social bill before the new year, all 50 of the party’s members in the Senate will need to sign on, and moderate Sen. Joe Manchin (D-W.V.) has continued to withhold his support.

See what others are saying: (The New York Times) (Axios) (The Washington Post)

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