The inquiry is centered around previously reported allegations that DeJoy pressured employees at his business to donate to Republican candidates and paid them back with bonuses.
Federal Inquiry Into DeJoy
The Department of Justice is investigating Postmaster General Louis DeJoy over possible violations of campaign finance laws involving his former business, a spokesperson for DeJoy confirmed Thursday.
The spokesman, Mark Corallo, corroborated the inquiry’s existence in a statement to the media after several unidentified officials told reporters that the FBI has been interviewing current and former employees of DeJoy’s business about political contributions and company activities.
DeJoy, who was a Republican megadonor before former President Donald Trump tapped him to lead the Postal Service, has also been issued a grand jury subpoena for information, one of the officials said.
“Mr. DeJoy has learned that the Department of Justice is investigating campaign contributions made by employees who worked for him when he was in the private sector,” Corallo said. “He has always been scrupulous in his adherence to the campaign contribution laws and has never knowingly violated them.”
News of the investigation was first reported by The Washington Post, which reported in September that multiple employees of the company, New Breed Logistics, said DeJoy pressured them to donate to his preferred Republican candidates and then reimbursed them with bonuses.
It is not illegal for employers to encourage their workers to donate to political campaigns. However, reimbursing political donations violates both state and federal campaign finance laws that prevent so-called “straw-donor” schemes utilized by wealthy donors to avoid individual contribution limits and conceal donation sources.
In an analysis of federal and state campaign finance records outlined in the September report, 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.”
According to the outlet, from 2000 and 2014, 124 individuals who worked for the company collectively gave more than $1 million to federal and state Republican candidates.
Many of the people who made the contributions had never previously donated to political campaigns before joining New Breed, and many did not make any more contributions after leaving the company.
It is currently unclear what period of time the DOJ investigation is covering.
DeJoy sold New Breed to the Connecticut-based company XPO Logistics in 2014 — a fact that could complicate the five-year statute of limitations for violations of federal campaign finance laws. The postmaster general, however, did remain on the board of XPO until 2018.
Shortly after The Post published its initial investigation last fall, the Campaign Legal Center, an advocacy organization, alleged in a complaint filed with the Federal Election Commission that suspicious donation activity had continued during the period in which DeJoy remained on the board.
According to the group, between 2015 and 2018, campaign finance records showed “several instances of XPO employees contributing to the same candidate or committee, during the same period of time, and often in similar amounts.”
DeJoy’s family members, including his college-aged children, “also made contributions on the same day or in the same period as those employees,” the organization claimed. “XPO Logistics employees and DeJoy family members following this pattern together gave over $150,000 to the same candidates and committees, including over $50,000 to Trump Victory, President Donald Trump’s joint fundraising committee.”
Employees who spoke to The Post in September indicated those fundraising efforts allowed DeJoy to cement his status and rise in the ranks of the Republican Party, ultimately culminating in his appointment as postmaster general.
DeJoy, who himself donated $1.1 million to Trump’s fundraising committees, has long faced scrutiny over whether he used his position to help the former president’s re-election campaign by intentionally slowing mail deliveries last summer to make mail-in voting less reliable.
The embattled Postal Service leader has repeatedly denied he abused his authority or violated any laws prior to his service in the Trump administration.
During an August Congressional hearing, Rep. Jim Cooper (D-Tn.) asked DeJoy if he had repaid employees for making donations to the Trump campaign.
“That’s an outrageous claim, sir, and I resent it,” he responded. “The answer is no.”
When The Post published its report a month later, Rep. Carolyn Maloney (D-N.Y.) said the House Committee on Oversight and Reform, which she chairs, would investigate the reimbursement allegations. Maloney added that DeJoy may have lied to the panel under oath if the claims were true.
See what others are saying: (The Washington Post) (The New York Times) (NPR)
McConnell Says He Would Block a Biden SCOTUS Nominee in 2024
The Senate Minority Leader also refused to say whether or not he would block a hypothetical nominee in 2023 if his party overtakes the chamber’s slim majority in the midterm elections.
McConnell Doubles Down
During an interview with conservative commentator Hugh Hewitt on Monday, Senate Minority Leader Mitch McConnell (R-Ky.) threatened to block a hypothetical Supreme Court nominee from President Joe Biden in 2024 if Republicans took control of the Senate.
“I think in the middle of a presidential election, if you have a Senate of the opposite party of the president, you have to go back to the 1880s to find the last time a vacancy was filled,” he said. “So I think it’s highly unlikely. In fact, no, I don’t think either party if it controlled, if it were different from the president, would confirm a Supreme Court nominee in the middle of an election.”
McConnell’s remarks do not come as a surprise as they are in line with his past refusal to consider former President Barack Obama’s nomination of Merrick Garland to the court in February 2016 on the grounds that it was too close to the presidential election.
The then-majority leader received a ton of backlash for his efforts, especially after he forced through Amy Coney Barrett’s confirmation just eight days before the 2020 election. At the time, McConnell argued the two situations were different because the Senate and the president were from the same party — a claim he reiterated in the interview.
McConnell also implied he may take that stance even further in comments to Hewitt, who asked if he would block the appointment of a Supreme Court justice if a seat were to be vacated at the end of 2023 about 18 months before the next inauguration — a precedent set by the appointment of Anthony Kennedy.
“Well, we’d have to wait and see what happens,” McConnell responded.
Many Democrats immediately condemned McConnell’s remarks, including progressive leaders who renewed their calls to expand the court.
“Mitch McConnell is already foreshadowing that he’ll steal a 3rd Supreme Court seat if he gets the chance. He’s done it before, and he’ll do it again. We need to expand the Supreme Court,” said Sen. Ed Markey (D-Ma.).
Some also called on Justice Stephen Breyer, the oldest SCOTUS judge, to retire.
“If Breyer refuses to retire, he’s not making some noble statement about the judiciary. He is saying he wants Mitch McConnell to handpick his replacement,” said Robert Cruickshank, campaign director for Demand Progress.
Others, however, argued that the response McConnell’s remarks elicited was exactly what he was hoping to see and said his timing was calculated.
The minority leader’s comments come as the calls for Breyer to step down have recently grown while the current Supreme Court term draws near, a time when justices often will announce their retirement.
On Sunday, Rep. Alexandria Ocasio-Cortez (D-N.Y.) was asked if she thought Breyer should leave the bench while Democrats still controlled the Senate. She responded that she was “inclined to say yes.”
With his latest public statement, McConnell’s aims are twofold here: he hopes to broaden divisions in the Democratic Party between progressives and more traditional liberals, who are more hesitant to rush Breyer to retire or expand the court, while simultaneously working to unite a fractured Republican base and encourage them to turn out in the midterm elections.
See what others are saying: (The New York Times) (CNN) (The Hill)
Gov. Abbott Says Texas Will Build Border Wall With Mexico
The announcement follows months of growing tension between the Texas governor and President Biden over immigration policies.
Texas Border Wall
Texas Gov. Greg Abbott (R) announced during a press conference Thursday that the state would build a border wall with Mexico, extending the signature campaign promise of former President Donald Trump.
Abbott provided very few details for the border wall plans, and it is unclear if he has the authority to build it.
While some of the land is state-owned, much of it belongs to the federal government or falls on private property.
Even if the state were able to build on federal ground, private landowners who fought the Trump administration’s attempts to take their land through eminent domain would still remain an obstacle for any renewed efforts.
During his term, Trump built over 450 miles of new wall, but most of it covered areas where deteriorating barriers already existed, and thus had previously been approved for the federal project.
The majority of the construction also took place in Arizona, meaning Abbott would have much ground to cover. It is also unclear how the governor plans to pay for the wall.
Trump had repeatedly said Mexico would fund the wall, but that promise remained unfulfilled, and the president instead redirected billions of taxpayer dollars from Defense Department reserves.
While Abbott did say he would announce more details about the wall next week, his plan was condemned as ill-planned by immigration activists, who also threatened legal challenges.
“There is no substantive plan,” said Edna Yang, the co-executive director of the Texas-based immigration legal aid and advocacy group American Gateways. “It’s not going to make any border community or county safer.”
Abbott’s announcement comes amid escalating tensions between the governor and the administration of President Joe Biden.
Biden issued a proclamation that stopped border wall construction on his first day of office, and has since undone multiple Trump-era immigration policies. Abbott, for his part, has blamed Biden’s rollback of Trump’s rules for the influx of migrants at the border in recent months.
Two weeks ago, the governor deployed over 1,000 National Guard members and troopers from the Texas Department of Public Safety to the border as part of an initiative launched in March to ramp up border security dubbed Operation Lone Star.
Last week, Abbott issued a disaster declaration which, among other measures, directed the Texas Health and Human Services Commission to strip the state licenses of all shelters that house migrant children and have contracts with the federal government.
The move, which federal officials have already threatened to take legal action against, could effectively force the 52 state-licensed shelters housing around 8,600 children to move the minors elsewhere.
During Thursday’s press conference, Abbott also outlined a variety of other border initiatives, including appropriating $1 billion for border security, creating a task force on border security, and increasing arrests for migrants who enter the country illegally.
“While securing the border is the federal government’s responsibility, Texas will not sit idly by as this crisis grows,” he said. “Our efforts will only be effective if we work together to secure the border, make criminal arrests, protect landowners, rid our communities of dangerous drugs and provide Texans with the support they need and deserve.”
See what others are saying: (The Texas Tribune) (The New York Times) (CNN)
Biden Ends Infrastructure Talks With Republicans
The president is now looking at other paths forward, including a plan being drafted by a bipartisan group of senators or the possibility of passing his proposal without Republican support.
Biden Looks to Bipartisan Group as Negotiations Collapse
After weeks of negotiations, President Joe Biden ended his efforts to reach an infrastructure deal with a group of Senate Republicans Tuesday.
Hopes for the centerpiece of Biden’s domestic agenda, however, are not dead. Lawmakers have already moved quickly to craft contingencies, outlining three main pathways for the next steps forward.
First, while an agreement between Biden and Republican senators is no longer an option, a joint deal is not off the table. Amid the ongoing negotiations, a bipartisan group of centrist senators have been quietly crafting an alternative plan in case the talks collapsed.
Currently, very few details of that plan are public, but the moderates have made it clear that their biggest division right now is the same sticking point that hung up Biden and the GOP group: how to fund the plan.
Negotiations on that front could prove very difficult, but they could also yield more votes. As a result, Biden indicated this path is his first choice, calling three members of the group Tuesday evening to cheer on their efforts.
Even if the group can come up with a deal that appeases Biden, the possibility still exists that not enough members would embrace it. In addition to funding questions, there are still disputes between Democrats and Republicans in regards to what constitutes “infrastructure.”
The president wants to expand the definition to more broad, economic terms. Republicans, however, have repeatedly rejected that, instead opting for more traditional conceptions of infrastructure.
As a result, while GOP lawmakers are worried that any proposal from the moderates would be too expansive, Democrats are concern that key provisions would be cut.
If a joint agreement cannot be reached, Biden’s second option for his infrastructure plan would be to forge ahead to pass a deal with just Democratic support in the Senate through budget reconciliation, the same procedure used to get the stimulus bill through.
Biden, for his part, does appear to at least be considering this option. In addition to calling the bipartisan group moderates Tuesday evening, he also spoke to Senate Majority Chuck Schumer (D-N.Y.) about drafting a new budget outline Democrats could use for the reconciliation process.
That path, however, also faces hurdles. In order for Democrats to even approve legislation through this process, they need all 50 members to vote in favor — something that is not guaranteed, given that some moderate senators have voiced their opposition to passing bills without bipartisan support.
While Schumer did say that he would still start work on a reconciliation package, he also outlined the third possible option: two separate bills.
“It may well be part of the bill that’ll pass will be bipartisan, and part of it will be through reconciliation,” he said Tuesday. “But we’re not going to sacrifice the bigness and boldness in this bill.”