- 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.
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.”
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.”
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)
Jan. 6 Committee Prepares Criminal Charges Against Steve Bannon for Ignoring Subpoena
The move comes after former President Trump told several of his previous aides not to cooperate with the committee’s investigation into the insurrection.
Bannon Refuses to Comply With Subpoena
The House committee investigating the Jan. 6 insurrection announced Thursday that it is seeking to hold former White House advisor Steve Bannon in criminal contempt for refusing to comply with a subpoena.
The decision marks a significant escalation in the panel’s efforts to force officials under former President Donald Trump’s administration to comply with its probe amid Trump’s growing efforts to obstruct the inquiry.
In recent weeks, the former president has launched a number of attempts to block the panel from getting key documents, testimonies, and other evidence requested by the committee that he claims are protected by executive privilege.
Notably, some of those assertions have been shut down. On Friday, President Joe Biden rejected Trump’s effort to withhold documents relating to the insurrection.
Still, Trump has also directed former officials in his administration not to comply with subpoenas or cooperate with the committee.
That demand came after the panel issued subpoenas ordering depositions from Bannon and three other former officials: Chief of Staff Mark Meadows, Deputy Chief of Staff Dan Scavino, and Pentagon Chief of Staff Kash Patel.
After Trump issued his demand, Bannon’s lawyer announced that he would not obey the subpoena until the panel reached an agreement with Trump or a court ruled on the executive privilege matter.
Many legal experts have questioned whether Bannon, who left the White House in 2017, can claim executive privilege for something that happened when he was not working for the executive.
Panel Intensifies Compliance Efforts
The Thursday decision from the committee is significant because it will likely set up a legal battle and test how much authority the committee can and will exercise in requiring compliance.
It also sets an important precedent for those who have been subpoenaed. While Bannon is the first former official to openly defy the committee, there have been reports that others plan to do the same.
The panel previously said Patel and Meadows were “engaging” with investigators, but on Thursday, several outlets reported that the two — who were supposed to appear before the body on Thursday and Friday respectively — are now expected to be given an extension or continuance.
Sources told reporters that Scavino, who was also asked to testify Friday, has had his deposition postponed because service of his subpoena was delayed.
As far as what happens next for Bannon, the committee will vote to adopt the contempt report next week. Once that is complete, the matter will go before the House for a full vote.
Assuming the Democratic-held House approves the contempt charge, it will then get referred to the U.S. Attorney for the District of Columbia to bring the matter before a grand jury.
See what others are saying: (CNN) (The Washington Post) (Bloomberg)
Senate Votes To Extend Debt Ceiling Until December
The move adds another deadline to Dec. 3, which is also when the federal government is set to shut down unless Congress approves new spending.
Debt Ceiling Raised Temporarily
The Senate voted on Thursday to extend the debt ceiling until December, temporarily averting a fiscal catastrophe.
The move, which followed weeks of stalemate due to Republican objections, came after Senate Minority Leader Mitch McConnell (R-Ky.) partially backed down from his blockade and offered a short-term proposal.
After much whipping of votes, 11 Republicans joined Democrats to break the legislative filibuster and move to final approval of the measure. The bill ultimately passed in a vote of 50-48 without any Republican support.
The legislation will now head to the House, where Majority Leader Steny Hoyer (D-Md.) said members would be called back from their current recess for a vote on Tuesday.
The White House said President Joe Biden would sign the measure, but urged Congress to pass a longer extension.
“We cannot allow partisan politics to hold our economy hostage, and we can’t allow the routine process of paying our bills to turn into a confidence-shaking political showdown every two years or every two months,’’ White House Press Secretary Jen Psaki said in a statement.
Under the current bill, the nation’s borrowing limit will be increased by $480 billion, which the Treasury Department said will cover federal borrowing until around Dec. 3.
The agency had previously warned that it would run out of money by Oct. 18 if Congress failed to act. Such a move would have a chilling impact on the economy, forcing the U.S. to default on its debts and potentially plunging the country into a recession.
Major Hurdles Remain
While the legislation extending the ceiling will certainly offer temporary relief, it sets up another perilous deadline for the first Friday in December, when government funding is also set to expire if Congress does not approve another spending bill.
Regardless of the new deadline, many of the same hurdles lawmakers faced the first time around remain.
Democrats are still struggling to hammer out the final details of Biden’s $3.5 trillion spending agenda, which Republicans have strongly opposed.
Notably, Democratic leaders previously said they could pass the bill through budget reconciliation, which would allow them to approve the measure with 50 votes and no Republican support.
Such a move would require all 50 Senators, but intraparty disputes remain over objections brought by Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Az.), who have been stalling the process for months.
Although disagreements over reconciliation are ongoing among Democrats, McConnell has insisted the party use the obscure procedural process to raise the debt limit. Democrats, however, have balked at the idea, arguing that tying the debt ceiling to reconciliation would set a dangerous precedent.
Despite Republican efforts to connect the limit to Biden’s economic agenda, raising the ceiling is not the same as adopting new spending. Rather, the limit is increased to pay off spending that has already been authorized by previous sessions of Congress and past administrations.
In fact, much of the current debt stems from policies passed by Republicans during the Trump administration, including the 2017 tax overhaul.
As a result, while Democrats have signaled they may make concessions to Manchin and Sinema, they strongly believe that Republicans must join them to increase the debt ceiling to fund projects their party supported.
It is currently unclear when or how the ongoing stalemate will be resolved, or how either party will overcome their fervent objections.
See what others are saying: (The New York Times) (NPR) (The Washington Post)
California Makes Universal Voting by Mail Permanent
California is now the eighth state to make universal mail-in ballots permanent after it temporarily adopted the policy for elections held amid the COVID-19 pandemic.
CA Approves Universal Voting by Mail
California Gov. Gavin Newsom (D) signed a bill Monday requiring every registered voter in the state to be mailed a ballot at least 29 days before an election, whether they request it or not.
Assembly Bill 37 makes permanent a practice that was temporarily adopted for elections during the COVID-19 pandemic. The law, which officially takes effect in January, also extends the time mail ballots have to arrive at elections offices from three days to seven days after an election. Voters can still choose to cast their vote in person if they prefer.
Supporters of the policy have cheered the move, arguing that proactively sending ballots to registered voters increases turnout.
“Data shows that sending everyone a ballot in the mail provides voters access. And when voters get ballots in the mail, they vote,” the bill’s author, Assemblyman Marc Berman (D-Palo Alto), said during a Senate committee hearing in July.
Meanwhile opponents — mostly Republicans — have long cast doubts about the safety of mail-in voting, despite a lack of evidence to support their claims that it leads to widespread voter fraud. That strategy, however, has also faced notable pushback from some that a lot of Republicans who say it can actually hurt GOP turnout.
Others May Follow
The new legislation probably isn’t too surprising for California, where over 50% of votes cast in general elections have been through mail ballots since 2012, according to The Sacramento Bee. Now, many believe California will be followed by similar legislation from Democrats across the country as more Republican leaders move forward with elections bills that significantly limit voting access.
Newsome signed 10 other measures Monday changing election and campaign procedures, including a bill that would require anyone advocating for or against a candidate to stand farther away from a polling place. Another bill increases penalties for candidates who use campaign funds for personal expenses while a third measure increases reporting requirements for limited liability corporations that engage in campaign activity.
“As states across our country continue to enact undemocratic voter suppression laws, California is increasing voter access, expanding voting options and bolstering elections integrity and transparency,” Newsom said in a statement.
“Last year we took unprecedented steps to ensure all voters had the opportunity to cast a ballot during the pandemic and today we are making those measures permanent after record-breaking participation in the 2020 presidential election.”
The news regarding California came just in time for National Voter Registration day today, giving Americans another reminder to make sure they’re registered in their states. For more information on how to register, visit Vote.gov or any of the other resources linked below.