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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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Mississippi Asks Supreme Court To Overturn Roe v. Wade

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The Supreme Court’s decision to consider Mississippi’s restrictive abortion ban already has sweeping implications for the precedents set under the landmark reproductive rights ruling, but now the state is asking the high court to go even further.


Mississippi’s Abortion Case

Mississippi filed a brief Thursday asking the U.S. Supreme Court to overturn Roe v. Wade when it hears the state’s 15-week abortion ban this fall.

After months of deliberation, the high court agreed in May to hear what will be the first abortion case the 6-to-3 conservative majority will decide.

Both a district judge and a panel of the U.S. Court of Appeals for the 5th Circuit had ruled that Mississippi could not enforce the 2018 law that banned nearly all abortions at 15 weeks with exceptions for only “severe fetal abnormality,” but not rape and incest.

If the Supreme Court upholds the Mississippi law, it would undo decades of precedent set under Roe in 1973 and upheld under Planned Parenthood v. Casey in 1992, where the court respectively ruled and reaffirmed that states could not ban abortion before the fetus is “viable” and can live outside the womb, which is generally around 24 to 28 weeks.

When the justices decided to hear the case, they said they would specifically examine the question of whether “all pre-viability prohibitions on elective abortions are unconstitutional.”

Depending on the scope of their decision on the Mississippi law, the court’s ruling could allow other states to pass much more restrictive abortion bans without the risk of lower courts striking down those laws.

As a result, legal experts have said the case will represent the most significant ruling on reproductive rights since Casey nearly three decades ago, and the Thursday brief raises the stakes even more.

When Mississippi asked the justices to take up its case last June, the state’s attorney general, Lynn Fitch (R), explicitly stated that the petition’s questions “do not require the Court to overturn Roe or Casey.”

But that was before the court’s conservatives solidified their supermajority with the appointment of Justice Amy Coney Barrett — who personally opposes abortion — following the death of liberal Justice Ruth Bader Ginsburg.

New Filing Takes Aim at Roe

With the new filing, it appears that Fitch views the high court’s altered makeup as an opportunity to undermine the constitutional framework that has been in place for the better part of the last century.

“The Constitution’s text says nothing about abortion,” Fitch wrote in the brief, arguing that American society has changed so much that the previous rulings need to be reheard.

“Today, adoption is accessible and on a wide scale women attain both professional success and a rich family life, contraceptives are more available and effective, and scientific advances show that an unborn child has taken on the human form and features months before viability,” she added, claiming the power should be left to state lawmakers. 

“Roe and Casey shackle states to a view of the facts that is decades out of date,” she continued. “The national fever on abortion can break only when this Court returns abortion policy to the states.”

The Center for Reproductive Rights, which represents Mississippi’s sole abortion provider in the suit against the state’s law, painted Fitch’s effort as one that will have a chilling effect on abortion rights nationwide.

“Mississippi has stunningly asked the Supreme Court to overturn Roe and every other abortion rights decision in the last five decades,” Nancy Northup, the president and CEO of the group said in a statement Thursday. “Today’s brief reveals the extreme and regressive strategy, not just of this law, but of the avalanche of abortion bans and restrictions that are being passed across the country.”

The Supreme Court has not yet said exactly when during its fall term it will hear oral arguments on the Mississippi case, but a decision is expected to come down by next June or July, as is standard.

An anticipated ruling just months before the 2022 midterms will almost certainly position abortion as a top issue at the ballot box.

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

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Republicans Boycott Jan. 6 Committee After Pelosi Rejects Two of McCarthy’s Picks

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The House Minority Leader said that unless House Speaker Pelosi reinstated the two members, Republicans will launch their own investigation into the insurrection.


Pelosi Vetoes Republicans

Republicans are boycotting the select committee to investigate the insurrection after House Speaker Nancy Pelosi (D-Ca.) rejected two of the five GOP members Minority Leader Kevin McCarthy (R-Ca.) picked to serve on the panel Wednesday.

In a statement, Pelosi cited the “statements and actions” of Rep. Jim Jordan (R-Oh.) and Jim Banks (R-In.), whose nominations she said she was opposing “with respect for the integrity of the investigation.”

Jordan and Banks — both staunch allies of former President Donald Trump — have helped propagate the previous leader’s false election claims, opposed efforts to investigate the insurrection, and voted not to certify the election for President Joe Biden. 

A senior Democratic aide also specifically told The Washington Post that Democrats did not want Jordan on the panel because he reportedly helped Trump strategized how to overturn the election and due to the fact he spoke to the then-president on Jan. 6, meaning there is a possibility he could be called to testify before the very same committee.

The aide also said that Democrats opposed Banks’ selection because of a statement he issued after McCarthy chose him.

In the statement, the representative compared the insurrection to the racial justice protests last summer, implied that the rioters were just normal American’s expressing their political views, and claimed the committee was a political ploy “to justify the Left’s authoritarian agenda.”

Notably, Pelosi did say she would accept McCarthy’s three other nominees — including Rep. Troy Nehls (R-Wi.), who also voted against certifying Biden’s win.

McCarthy Threatens Separate Investigation

McCarthy, however, refused to select new members, and instead opted to remove all his appointees from the would-be bipartisan committee.

In a statement condemning the move, the minority leader said that Pelosi’s action “represents an egregious abuse of power.” 

“Denying the voices of members who have served in the military and law enforcement, as well as leaders of standing committees, has made it undeniable that this panel has lost all legitimacy and credibility and shows the Speaker is more interested in playing politics than seeking the truth,” he said.

“Unless Speaker Pelosi reverses course and seats all five Republican nominees, Republicans will not be party to their sham process and will instead pursue our own investigation of the facts.”

Pelosi defended her decision during a press conference Thursday, where she said that Banks and Jordan were “ridiculous” choices for the panel. 

“When statements are ridiculous and fall into the realm of, ‘You must be kidding,’ there’s no way that they’re going to be on the committee,” she added.

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

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More Republican Are Pushing COVID Vaccinations, But the Party Remains Divided on Its Messaging

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The renewed effort to encourage vaccination comes as the surge in COVID cases caused by the delta variant continues to disproportionately impact Republican-led states with low vaccination rates.


GOP Leaders Ramps Up Vaccination Push

In recent days, more Republican leaders and prominent conservatives have ramped up efforts to encourage members of their party to get vaccinated against COVID-19 as the U.S. continues to see massive surges from the delta variant.

Some, like Senate Minority Leader Mitch McConnell (Ky.), have been pushing Americans to get vaccinated for months — a call he reiterated again on Tuesday. Many others, however, have been reticent to do the same until recently.

Most notable on that list is Rep. Steve Scalise (La.), the no. 2 Republican in House leadership, who just got his first dose over the weekend after resisting vaccination, claiming he had antibodies from previously contracting COVID. Scalise explained he changed his mind because of delta and encouraged others to do the same.

“There shouldn’t be any hesitancy over whether or not it’s safe and effective,” he said.

The top leader is set to continue pushing that advice. Earlier this week, the GOP Doctors Caucus announced that it would hold a news conference Thursday alongside Scalise and the third-ranking House Republican, Rep. Elise Stefanik (N.Y.), to encourage vaccination.

Rank and File Republicans Continue To Cast Doubt, Spread Misinformation

There are still plenty of Republicans working to undermine the renewed push to get their party vaccinated.

While many have painted vaccination as a matter of freedom of choice, others have sought to downplay the virus. Florida Gov. Ron DeSantis, whose state currently accounts for 40% of all new COVID cases, dismissed the spikes as the result of a “seasonal virus” on Monday.

Rep. Barry Loudermilk — who has had COVID twice — echoed that in a statement to reporters on Tuesday, where he argued that COVID is just something everyone has to live with.

“This is something we deal with in our lives on a daily basis; ever since I’ve been born, there’s sicknesses, there’s flu, there’s different diseases,” he said.

Some members of the GOP have used their positions of power to actively fight against vaccination. That includes Sen. Ron Johnson (Wi.), who has openly said he is not vaccinated. He has also been widely condemned for promoting unproven treatments and false information about vaccines during interviews and congressional hearings.

Rep. Marjorie Taylor Greene (Ga.), who has repeatedly refused to share her vaccination status, has also drawn ire for sharing misinformation and continually comparing COVID prevention efforts to the Holocaust.

Greene was temporarily suspended from Twitter earlier this week for sharing false information on Monday, but she continued to utilize her spotlight to spread misinformation about vaccine-related deaths and side effects during a press conference the following day.

Uphill Battle

While those who downplay the coronavirus and spread false information about vaccinations are certainly not representative of the entire Republican Party, they are some of the most visible.

Greene and many of her counterparts who push anti-vaccine narratives have frequently been accused of acting in inflammatory ways to get more press — a strategy that more often than not tends to work in their favor. 

As a result, Republicans who want to encourage people to get the jabs will have their work cut out for them. Even many of those who have not openly expressed skepticism themselves have still let it flourish in the party for so long by not publicly pushing back against claims from members who sow disinformation.

The GOP’s broader failure to unify around a singular message on vaccines shows clearly among the party’s base.

According to a recent Washington Post-ABC News, poll 86% of Democrats have received at least one shot, but just 45% of Republicans have done the same. While just 6% of Democrats say they are not likely to get the vaccine, 47% of Republicans said they probably will not, and 38% said they definitely will not. 

Meanwhile, Republican-led states with low vaccination rates are suffering the most from the new spike in cases and the rapid spread of the delta variant. 

Arkansas, which has one of the lowest vaccination rates in the country at just 35%, is currently reporting the highest per-capita cases in the U.S. Hospitalizations have gone up 85% in the state in the last two weeks, placing some hospital systems on the brink of collapse — a problem also faced by parts of Missouri, which has the third-highest COVID cases nationwide.

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

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