Wednesday, December 2, 2020

What DOJ’s second known LDA investigation can tell us — Trump lobs last-minute NDAA veto threat — BGR adds Columbia mayor to advisory board

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Dec 02, 2020 View in browser
 
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By Caitlin Oprysko

Presented by Action for Health

Because of a production error, POLITICO Influence was sent to an incorrect subscriber list. Today's edition is below. We apologize for the inconvenience.

With Daniel Lippman

READING BETWEEN THE (REDACTED) LINES: A court ruling unsealed Tuesday disclosed that federal prosecutors are investigating an alleged "bribe-for-pardon" scheme relating to the Trump White House — a probe that included whether lobbying efforts for the pardon violated the Lobbying Disclosure Act because those involved didn't register under the law, making it only the second known investigation into a breach of lobbying laws in the statue's 25-year history. Both known LDA probes have come within a matter of months, which some experts see as an indication that the Justice Department is leaning into enforcing advocacy laws.

— The August opinion issued by Chief U.S. District Court Judge Beryl Howell was released in a heavily redacted form Tuesday, and shows "Howell granted prosecutors permission to examine emails involving lawyers and an effort to seek a pardon for someone whose name was deleted from the public version of the opinion," our Josh Gerstein reports. She expressed doubt in the ruling that there's enough evidence to prove that those involved violated the LDA, noting the statute has some rather large loopholes.

— But the disclosure of any investigation at all is notable and, taken together with charges brought against disgraced lobbyist Jack Abramoff earlier this summer, could signal that DOJ is "actively now looking into potential LDA violations," said Josh Rosenstein, a lawyer with Sandler Reiff Lamb Rosenstein & Birkenstock who advises clients on lobbying laws. That, along with prosecutions in recent years targeting high-profile figures' failure to register as foreign agents, "very well may reveal a trend in DOJ's renewed focus broadly on enforcing laws concerning advocacy."

— "That's a significant development for the lobbying community, because it shows that 25 years after the LDA was enacted, the Department of Justice is suddenly treating it as worthy of criminal prosecution," echoed Robert Kelner, an attorney for Covington's election and political law practice. He suggested that the investigation disclosed Tuesday could be the result of a "feedback effect" within the department, and pointed out that in both the instance outlined in Tuesday's order and in Abramoff's case the potential violations appeared to grow out of or were tacked on to other alleged crimes.

— Prosecutors "are investigating a 'bribery-for-pardon scheme' in which someone 'would offer a substantial political contribution in exchange for a presidential pardon or reprieve of sentence' for an unidentified person," the ruling says. A DOJ official suggested the focus of the investigation was not on White House officials, a distinction White House press secretary Kayleigh McEnany highlighted in a press briefing today, while denying anyone at the White House had been interviewed in the probe.

Good afternoon and welcome to PI. Reach out: coprysko@politico.com. And follow me on Twitter: @caitlinoprysko.

A message from Action for Health:

We can't afford a one-sided solution to surprise medical bills. That's why we're calling on Congress to enact a fair IDR process. One that treats doctors and insurance companies equally. Our health system is hemorrhaging from the pandemic, and now's the worst time to inflict further pain with bad legislation. Learn More.

 

TRUMP UPENDS NDAA TALKS… AGAIN: President Donald Trump laid down his latest red line with regard to the annual defense policy bill that must pass by year's end, threatening to veto the NDAA — which has already passed both chambers of Congress with veto-proof majorities — if lawmakers fail to include a full repeal of the tech industry's Section 230 liability protections. It's an 11th-hour demand that Democrats and Republicans alike are poised to ignore, per our Connor O'Brien, Andrew Desiderio and Marianne LeVine . The president previously dangled a veto this summer, when the House and Senate versions of the annual must-pass bill included provisions to rename military bases that carry the names of Confederates — which McEnany said she wasn't sure if Trump had changed his stance on. But she affirmed that Trump's threat is "serious," saying he has "grave concerns" about Section 230 and wanted lawmakers to "step up on this."

— "The president's Twitter broadside puts Republicans in a bind as they look to maintain the support of Trump and his base heading into the Georgia runoffs next month that will determine control of the Senate. If GOP lawmakers back Trump, they risk tanking the popular military policy bill that's become law each year for nearly six decades; if they buck him by ignoring his complaints or overriding a veto, they risk stoking Trump's ire."

— "Still, Republicans on Wednesday showed some signs of exasperation with the president's latest effort. As one GOP lawmaker put it: 'Republicans are sick of this shit.'" Sen. Mike Rounds (R-S.D.), who sits on the Armed Services Committee, tread lighter, saying he understood the president's frustrations with Section 230 but that "The NDAA is so important to the men and women that wear the uniform that this should not be an item to veto the act over."

Axios reported Monday that the Trump administration was making a late effort to repeal the provision, which protects online companies like Facebook and Twitter from lawsuits over content posted on their platforms. The president and his allies have looked to limit those protections, and even some Democrats have voiced concerns that the protections have been abused by social media companies.

 

TRACK THE TRANSITION: President-elect Biden has started to form a Cabinet and announce his senior White House staff. The appointments and staffing decisions made in the coming days send clear-cut signals about Biden's priorities. Transition Playbook is the definitive guide to one of the most consequential transfers of power in American history. Written for political insiders, it tracks the appointments, people, and the emerging power centers of the new administration. Track the transition and the first 100 days of the incoming Biden administration. Subscribe today.

 
 


FIRST IN PI — BENJAMIN JOINING BGR ADVISORY BOARD: Columbia, S.C., Mayor Steve Benjamin will join the advisory board of the bipartisan firm BGR Group. Benjamin, who is in his third term leading South Carolina's capital city, stressed he is not joining BGR in a lobbying capacity. But he applauded the firm for looking "aggressively domestically" for its advisory board, especially in light of the stress the coronavirus pandemic and unrest over racial justice has placed on local governments. "Many of the ideas and solutions that address these issues will be developed at the local level. The challenges have been compounded on local economies, on Main Street," he told PI, explaining that he plans to help the firm and its clients "understand the sensitivities, the real issues that folks at the local level are dealing with" and "play a very constructive role in helping solve and address those problems."

— In a statement, Jonathan Mantz, the co-head of BGR's commerce, infrastructure and energy practice called Benjamin a "tremendous asset to BGR's clients." In addition to his day job, Benjamin also this week was named as a co-chair of the U.S. Global Leadership Coalition's education arm, and while the former head of the U.S. Conference of Mayors said he remains in close contact with the transition team, he has "zero intentions" of joining the Biden administration.

HOW A POTENTIAL BIDEN EPA PICK TAUGHT BIZ TO LOVE THE ENVIRONMENT: POLITICO's Debra Kahn is out with a smart look at California Air Resources Board Chair Mary Nichols , "a Yale-trained lawyer who first helmed California's air agency in the 1970s" and "has made a career of bringing industry on board with groundbreaking environmental policies in ways that others have struggled — and failed — to replicate."

— "Nichols' ability to convince wary policymakers and industry executives that the environment and economy are not at odds lies at the heart of her success in forging a bipartisan consensus on climate change action in California. And it may be the reason that Nichols, who is termed out as chair of the state air pollution agency at the end of the year, tops the list of Joe Biden's potential picks to head the Environmental Protection Agency, which will face much the same challenge if the new administration has any hope of meeting international goals to rein in greenhouse emissions."

WHAT'S NEXT FOR DEMS' NO CORPORATE PAC PLEDGES: "Swearing off donations from corporate political action committees became all the rage among Democrats during the past two election cycles, but potential cracks in the trend have begun to emerge," Kate Ackley writes for Roll Call, noting that Reps. Elaine Luria (D-Va.) and Seth Moulton (D-Mass.) have recently backed down from that promise. "The pledges are easy to circumvent," Ackley notes, and "Micaela Isler, who serves as executive director of the National Association of Business Political Action Committees , said Luria 'walked back that pledge going into the next cycle.' Isler expected some other Democrats to consider the same move."

End Citizens United , which works to limit corporate influence in politics, said it was "incredibly disappointed" in Luria, whose campaign did not respond to Roll Call's requests for comment. The group noted that a greater percentage of this year's freshman class of Democrats had sworn off donations from business PACs than after the 2018 midterms — although Democrats' freshman class is much smaller this this cycle, and the party lost seats in the House as well as a handful of high-profile Senate races featuring candidates that had taken the pledge.

PUSHING FORWARD: "Concerned about Republicans slow-walking confirmation hearings for Cabinet appointees and hollowed-out federal agencies, Biden and his aides are eager to place mid- to lower-level officials across the federal government, particularly in national security roles, to ensure his administration can begin to enact his agenda immediately," our Halley Toosi, Tyler Pager and Andrew report. "By quickly selecting candidates for slots that don't require Senate confirmation, such as deputy assistant secretaries, the transition team also can try to ensure that many of those hired can obtain security clearances by the time Biden takes office."

ALSO NOT WAITING ON THE HILL: With Congress continuing to brawl over a potential coronavirus relief package during the lame duck, "[g]overnors and state lawmakers across the country are racing to authorize millions of dollars in new coronavirus stimulus aid, aiming to plug gaping holes in their local economies before the end of the year," The Washington Post's Tony Romm reports.

— "Michigan, for example, has sought to extend another round of enhanced payments to its unemployed residents. Minnesota has eyed one-time stimulus checks to locals under financial duress. And Colorado has mounted a wide-ranging effort to help its cash-starved workers and businesses, working on legislative proposals that could help cover rent payments, utility bills and other critical costs. The states' redoubled stimulus efforts may offer a critical economic lifeline for millions of Americans at a time when many governors are instituting a new round of shutdown orders nationwide." But even though local leaders aren't waiting on D.C. to sort through the numerous stimulus proposals circulating the Capitol, they are reiterating that any relief is "likely to be short-lived, illustrating their financial constraints — and the urgent need for Congress to adopt a more robust relief package after considerable delay."

 

A message from Action for Health:

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Jobs Report

Sloan Savage has joined the D.C. office of Avisa Partners as an associate director focused on the Paris-based firm's international clients. She was previously at Signal Group.

Mercedes LeGrand is now managing director at Raines International, co-leading its aerospace, defense and government services practice, Playbook reports. She most recently headed Russell Reynolds' aviation, aerospace and defense practice.

New Joint Fundraisers

None.

 

NEXT WEEK - DON'T MISS THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT 2020: POLITICO will feature a special edition Future Pulse newsletter at the Milken Institute Future of Health Summit. The newsletter takes readers inside one of the most influential gatherings of global health industry leaders and innovators determined to confront and conquer the most significant health challenges. Covid-19 has exposed weaknesses across our health systems, particularly in the treatment of our most vulnerable communities, driving the focus of the 2020 conference on the converging crises of public health, economic insecurity, and social justice. Sign up today to receive exclusive coverage from December 7–9.

 
 


New PACs

Career Education PAC (Super PAC)
National Rental Home Council Political Action Committee (PAC)
Parker County Active Democrats (PAC)
The Grass Roots (Super PAC)

New Lobbying Registrations

Atlas Crossing LLC: Hill East Group, LLC (On behalf of Idemia Identity & Security USA LLC)
Atlas Crossing LLC: HILL EAST GROUP, LLC (on behalf of Syracuse Regional Airport Authority)
Avenue Solutions: StemExpress, LLC
Bay Bridge Strategies, Inc.: Peck Madigan Jones (on behalf of EOS Energy Storage LLC)
BGR Government Affairs: National Resilience, Inc.
Capitol Counsel, LLC: TCL Industrial Holdings Americas
Holland & Knight LLP: Morehouse College
Holland & Knight LLP: Spelman College
Kountoupes Denham Carr & Reid, LLC: The Sixteen Thirty Fund
Peck Madigan Jones: EOS Energy Storage LLC
Venable LLP: Daniel Kandalaft
Whitaker Strategies (Stephen B. Whitaker DBA Whitaker Srategies, formerly Whitak: Arrow Electronics, Inc.

New Lobbying Terminations

R & B Strategies: Crowell & Moring LLP On Behalf Of Kgl Investment Co
Urban Swirski & Associates, LLC: Emerson Electric Co.

A message from Action for Health:

A solution to surprise medical bills must be fair.

Hospitals are being overrun. Doctors are facing significant Medicare cuts. More than 260,000 patients have died from Covid-19. Yet, there's an unfair surprise medical bill "compromise" being considered for the year-end spending deal. That would be devastating.

To solve surprise medical bills once and for all, the next Congress should adopt a fair independent dispute resolution (IDR) process that:

· Treats both doctors and insurance companies equally by allowing each party to submit all relevant information to a neutral third-party arbiter.
· Follows the successful IDR models implemented by Florida, Illinois, New Jersey, New York, Texas, and Washington.
· Does not favor health insurers' contracted, in-network median rates.

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