✈️ Crises haunt Buttigieg

Plus: McCarthy's George Santos problem | Wednesday, January 11, 2023

Open in app View in browser   Presented By Coinbase   Axios Sneak Peek By Hans Nichols and Zachary Basu · Jan 11, 2023 Welcome back to Sneak. Smart Brevity™ count: 949 words ... 3.5 minutes. ⚡ Situational awareness: Aides to President Biden discovered at least one additional batch of classified documents in a separate location from the think tank office that set off a DOJ review, NBC News first reported.     1 big thing: Historic crises haunt Buttigieg Photo: Paul Morigi/Getty Images   A historic string of air, rail and supply-chain meltdowns has plagued Transportation Secretary Pete Buttigieg's first two years in office, placing him — for better or worse — at the center of crises affecting millions of people, Axios' Alexi McCammond and Josh Kraushaar write. Why it matters: A modest Cabinet role has become a political albatross for one of the Democratic Party's brightest young stars. Republicans have sought to make Buttigieg the face of the transport disruptions, while Democrats say his crisis leadership is proving his political mettle. What's happening: A safety system outage forced the Federal Aviation Administration to temporarily ground all U.S. flights today for the first time since the 9/11 attacks. Just weeks earlier, a systemwide meltdown at Southwest resulted in thousands of flight cancellations and delays over the holidays. Late last year, Congress had to step in to avert a nationwide freight rail strike after union workers rejected a Biden administration-brokered deal over the lack of paid sick leave. Meanwhile, global supply chain snarls linked to the COVID-19 pandemic have caused massive disruptions to U.S. ports dating back to 2021, resulting in widespread product shortages and persistent inflation. The latest: President Biden has ordered Buttigieg to conduct an investigation of the flight system outage, which the FAA has preliminarily traced to a "damaged database file." In response to a question at today's briefing, White House press secretary Karine Jean-Pierre confirmed that Biden still has confidence in Buttigieg. Screenshot: MSNBC Between the lines: Buttigieg has in several cases been the victim of circumstances that predated his time in office — such as the ancient computers and infrastructure that appeared to contribute to the FAA disaster. That hasn't stopped Republicans from relentlessly attacking Buttigieg each time a crisis has arisen, accusing the former small-town mayor of being incompetent and ill-qualified. The other side: Jill Zuckman, the former head of public affairs under Transportation Secretary Roy LaHood, says Republicans are hammering Buttigieg because they see him as a potential presidential candidate. "That's not how past Transportation secretaries were treated," Zuckman told Axios. The lack of a permanent FAA administrator has also required Buttigieg to assume a more public-facing role. His frequent appearances on Fox News and other cable news channels — a relic of the "go everywhere" media strategy that vaulted him to the top of the Democratic field in 2020 — have reinforced his status as one of the party's most effective communicators. Be smart: The path from a second-tier Cabinet position like Transportation secretary to the White House — or any prominent elected office — was never as easy as advertised. By the time any future openings pop up, memories of Buttigieg's remarkable underdog presidential campaign will have faded. Share this story.     2. 👀 McCarthy's George Santos problem Photo illustration: Shoshana Gordon/Axios. Photos: Jabin Botsford/The Washington Post via Getty Images   Top Republicans are performing a balancing act between fully embracing Rep. George Santos (R-N.Y.) and abandoning him to a flurry of investigations and calls to resign, Axios' Andrew Solender writes. Driving the news: The Nassau County GOP today called for Santos' "immediate resignation" over reports that he fabricated huge swaths of his resume and background on the campaign trail. But House Speaker Kevin McCarthy insists Santos will get committee assignments, telling reporters: "The voters elected him to serve. … In America today, you're innocent until proven guilty." "When you have your local party saying something so vocally, that's not a helpful sign," said Rep. Patrick McHenry (R-N.C.). "But we're going to leave this up ... to the normal legal and ethics process." Between the lines: A Republican aide offered a blunt explanation for McCarthy's defense of Santos: "We have 222 seats." Republicans have just a five-seat majority and the House has a new rule allowing just one member to trigger a vote on removing the speaker. Santos represents a district that voted for President Biden by 10 points, meaning a special election could conceivably swing to Democrats and tighten the GOP's majority even further. Keep reading.     3. 🐘 Youngkin at a crossroads Photo: Alex Wong/Getty Images   Virginia Republicans' defeat in a state Senate special election last night has left Gov. Glenn Youngkin at a political crossroads, threatening to derail the national ambitions of one of the GOP's most promising stars, Josh writes. Why it matters: Youngkin's efforts to build a robust governing record ahead of a possible 2024 presidential campaign — including closely watched plans for a 15-week abortion ban — are at risk now that Democrats hold a two-seat majority in the upper chamber. What to watch: Youngkin could spend the coming legislative session compromising with state Democrats on tax cuts, education spending and mental health funding. But that's unlikely to give him the type of conservative victories he'd be able to champion for a national GOP audience in a presidential primary. If Youngkin pursues a high-profile but futile fight on abortion, he'd diminish the very asset he brings to the national picture: His ability to focus on quality-of-life issues that unite both independents and conservatives. If Youngkin doesn't secure major policy victories, his governing record would look sparse compared to other GOP governors mulling presidential campaigns, including Florida's Ron DeSantis and New Hampshire's Chris Sununu. Keep reading.     A message from Coinbase 3 steps to restore trust in crypto     Moving into 2023, there are steps we can take to restore trust in crypto, including: Creating regulatory clarity for centralized actors. Enforcing a level playing field for crypto companies. Allowing innovation to flourish in decentralized crypto. Explore the benefits.     4. 📣 Charted: Hill's first-year influencers Data: Kekst CNC; Chart: Madison Dong/Axios Visuals Sen. John Fetterman (D-Pa.) — whose factory of memes tormented Republican Mehmet Oz during their high-stakes Senate race — enters Congress with the largest social-media following out of any freshman, according to a Kekst CNC report provided to Axios. See the report.     A message from Coinbase Regulatory clarity for crypto     Regulation can restore trust in crypto as we move into 2023 and beyond. Looking ahead: Companies, policymakers, regulators and customers can work together to pass workable crypto legislation we can agree on now. Learn how with insights from Coinbase.   📬 Thanks for reading tonight. This newsletter was edited by Zachary Basu and copy edited by Kathie Bozanich. Are you a fan of this email format? Your essential communications — to staff, clients and other stakeholders — can have the same style. 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