Sunday, September 10, 2023

Ginni Thomas spurs a new SCOTUS headache

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POLITICO Playbook

By Eugene Daniels, Rachael Bade and Ryan Lizza

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With help from Eli Okun and Garrett Ross

DRIVING THE DAY

CHUCK TODD SAYS GOODBYE TO MTP — Today was CHUCK TODD’s final appearance as moderator of NBC’s “Meet the Press” after nearly a decade behind the desk.

“On my first day on the job of ‘Meet The Press,’ I was handed an audience survey of Sunday show viewers and the No. 1 reason folks said they tuned in was not because the person was behind the chair or the guests, it was simply to get educated,” Todd said during his handoff to KRISTEN WELKER, who will be the first Black moderator of the storied program. “So for nearly a decade, I’ve had the honor of helping to explain America to Washington and Washington to America, as Kristen just quoted me about. And it's that education piece that I’m hanging my hat on for the rest of my professional life.”

After the show, NBC hosted a farewell event with speeches from Todd, Welker, NBCUniversal News Group Chair CESAR CONDE and NBC News President of Editorial REBECCA BLUMENSTEIN. 

SPOTTED: Symone Sanders-Townsend, Jen Psaki, Luke Russert, Ali Vitali, Amy Walter, Pete Williams, Amna Nawaz, Donna Edwards, Neal Katyal, Ruth Marcus, Monica Alba, Jake Sherman, Kimberly Atkins Stohr, Cornell Belcher, Barbara and John Cochran, Kristian Denny Todd, Sena Fitzmaurice, Hallie Jackson, Courtney Kube, Carol Lee, Susan Page and Danielle Pletka.

Virginia Thomas moderates a panel.

Just weeks ahead of the Citizens United ruling, Virginia Thomas teamed up with Leonard Leo to create a nonprofit, Liberty Central, that would benefit from the coming ruling. | Chip Somodevilla/Getty Images

NEW QUESTIONS CLOUD CLARENCE THOMAS — In 2010, the Supreme Court ruling in Citizens United dramatically expanded the influence of money in politics. That is little surprise to anyone who’s paid attention these last 13 years.

But in a major investigation out this morning, Heidi Przybyla reveals something genuinely eyebrow-raising: how two conservative activists — Federalist Society leader LEONARD LEO and VIRGINIA THOMAS, the wife of Justice Clarence Thomas — worked together to seize the moment and fuel a partisan political movement, with financial support from billionaire HARLAN CROW.

Here are some of the key findings from the piece: 

— Just weeks ahead of the Citizens United ruling, Ginni Thomas teamed up with Leo to create a nonprofit, Liberty Central, that would benefit from the coming ruling. The organization’s focus was to tear down the Obama administration’s health care agenda.

The early discussions among Leo, Thomas and Crow — who, it was revealed earlier this year, has used his immense wealth to lavish the Thomases with extravagant vacations and other gifts — resulted in a “billion-dollar force that has helped remake the judiciary and overturn longstanding legal precedents on abortion, affirmative action and many other issues.”

— When Ginni Thomas was forced to step aside later in 2010, it was, by all public appearances, the end of their collaboration. But Heidi found that Thomas immediately filed paperwork to form a for-profit consulting business — and Leo’s network reactivated a dormant tax-exempt charitable group, the Judicial Education Project, that went on to pay her an amount similar to what she had earned from Liberty Central.

— Under federal law, groups like the Judicial Education Project are supposed to be primarily charitable in nature. It is unclear what charitable services Thomas, who was attempting to form a political activist group at the time, was qualified to provide and whether she was paid a fair price for her services.

— There are IRS reporting discrepancies in paperwork concerning the group, along with more examples of Leo’s friends who’ve been paid significant amounts of money from tax-exempt nonprofits for services they refuse to disclose when questioned. The group has filed multiple amicus briefs in front of the Supreme Court.

As the cascade of questions about ethics on the Supreme Court continues to fall, you can expect to hear more about this.

Good Sunday morning. Thanks for reading Playbook. The NFL is back. How are you spending your Sunday? Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza.

 

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FIRST IN PLAYBOOK: VIRGINIA OFFERS PREVIEW OF 2024 — In just about eight weeks, Virginia voters will decide what is arguably the most nationally relevant election on the ballot in 2023.

We could tell you all about the stakes for Virginia — all 140 state legislative seats are up for grabs, and Gov. GLENN YOUNGKIN’s Republicans have the rare opportunity to win a trifecta in a purple-to-blue battleground state.

But the reason that national political insiders are paying attention is that the Virginia election is a test run for both parties’ messaging ahead of 2024.

To top Virginia Democrats, the race is shaped by nearly the exact same contours that define the JOE BIDEN campaign’s theory of the case for 2024, according to a memo obtained exclusively by Playbook.

THE NATIONAL IMPLICATIONS: If the Virginia strategy is any guide, you can expect to hear Democrats talk a whole lot about abortion rights and “MAGA extremists” next year.

“Abortion is on the ballot,” write Amy Friedman, Matt Calderon and Sam Signori, top aides with the Virginia Dems’ House Caucus, Senate Caucus and the Majority Project, respectively. They identify the issue as the top “strategic reality” in the campaign.

“The MAGA extremists have already shown us they want to change Virginia’s current laws and ban abortion if they get complete control this November,” the memo reads. “Virginia is currently the only southern state remaining where abortion rights haven’t been taken away since the Supreme Court overturned Roe v. Wade, but that would change if they take power.”

The other four “strategic realities” give a glimpse of the issues Dems think play well in swinging suburban districts: gun laws, education, GOP extremism and the budget (framed mostly along economic lines). All have national salience, but perhaps none more than abortion rights.

THE VIRGINIA IMPLICATIONS: The memo’s battlefield analysis comes down to three subcategories: (1) “Republicans’ path to win the state Senate can be stopped”; (2) “control of the House of Delegates is at play” and (3) “the ground game is in full swing.”

On the latter, Dems boast of “100 staff members already in the field, a seven-figure early and absentee vote effort, including a robust field program with a combination of collaborative door-to-door and phone-to-phone efforts … Organizers expect to knock on over one million doors by election day.”

On the other side of the aisle, at a rally last night, Youngkin fired up Republicans and made a plea for supporters to join in the GOP ground game: “We need an army knocking on doors and getting people out to vote.”

As for the issues he talked about, they offer a 2024 preview for GOP messaging: “education, the economy and crime,” as ABC’s Laura Romero reports.

One thing Youngkin did not mention: anything about abortion — “[b]ut when pressed after the event whether he would support a six-week abortion ban, Youngkin said he would support a 15-week abortion ban bill,” Romero writes. (It’s another reminder that after decades of fighting for the fall of Roe, the GOP continues to struggle over what exactly should come next, and how to sell it to the public.)

 

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SUNDAY BEST …

— Sen. BILL CASSIDY (R-La.) on whether he would back — or even run on! — a No Labels presidential ticket, on NBC’s “Meet the Press”: “Depending upon who the candidates were.” Chuck Todd: “We’re looking at Biden and [DONALD] TRUMP. And is that suddenly appealing?” Cassidy: “If they came and spoke to me, I would certainly speak to them back.”

— California Gov. GAVIN NEWSOM on whether he would pick any of the current candidates — including, say Rep. BARBARA LEE (D-Calif.) — to fill Sen. DIANNE FEINSTEIN’s (D-Calif.) seat if she resigned, on “Meet the Press”: “Interim appointment. I don’t want to get involved in the primary. … It would be completely unfair to the Democrats that have worked their tail off. That primary is just a matter of months away. I don’t want to tip the balance of that.”

— Rep. MICHAEL McCAUL (R-Texas) on the House Foreign Affairs investigation into the Afghanistan pullout, on CNN’s “State of the Union”: “We want to talk to JEN PSAKI. The messages she was sending out from the White House were so different from what was happening on the ground. JOHN KIRBY made the comment that no weapons were left behind. Which is insane. There are $7 billion of weapons, and I can show you the tapes of the weapons and the cache that were left behind. NED PRICE, State Department, making rosy comments … We sent letters to have them testify.”

— VP KAMALA HARRIS on whether recent record numbers at the border mean the administration’s policies aren’t working, on CBS’ “Face the Nation”: “Absolutely not. What it means is that we have to stay focused on a number of issues related to the irregular migration that, again, we’re seeing around the world, and America is not immune. … There are going to be fluctuations. … It doesn’t mean that we keep our foot off the gas.”

TOP-EDS: A roundup of the week’s must-read opinion pieces.

BIDEN’S SUNDAY — After visiting the Raj Ghat Memorial with other G20 leaders in New Delhi earlier today, the president left India for Hanoi, Vietnam. There, Biden met with General Secretary NGUYỄN PHÚ TRỌNG of the Communist Party of Vietnam (who offered some striking flattery), delivered remarks and held a press conference.

HARRIS’ SUNDAY — The VP has nothing on her public schedule beyond the interview airing on CBS.

 

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PHOTO OF THE DAY

Vice President Kamala Harris speaks at a 50th anniversary celebration of hip-hop at the Vice President's residence, Saturday, Sept. 9, 2023, in Washington. (AP Photo/Manuel Balce Ceneta)

VP Kamala Harris celebrates the 50th anniversary of hip-hop with a celebration of the art form at her residence yesterday. | Manuel Balce Ceneta/AP Photo

PLAYBOOK READS

9 THINGS FOR YOUR RADAR

1. POTUS ABROAD: As the G20 wrapped up today, the world leaders’ concluding declaration was most notable for how soft it went on Russia, leaving out any mention of its invasion of Ukraine, NYT’s Katie Rogers reports from New Delhi. It did include a nod to the Ukrainian people’s “suffering,” a focus on getting grain exports out of the breadbasket and a call for peace. “American officials defended the agreement, saying it built on the statement released last year and that the United States was still pressing for peace in Ukraine.” Biden was focused more on strengthening ties with Indian PM NARENDRA MODI and on other elements of the declaration, including developing nations’ debt and climate change.

Speaking of going soft on dictators: Saudi Crown Prince MOHAMMED BIN SALMAN got a handshake photo-op with Biden, as Andrew Zhang writes. The U.S. is working with Riyadh to construct the India-Middle East-Europe Economic Corridor, to improve relations with Israel and, separately, to deepen a partnership to get critical metals for electric vehicles, as WSJ’s Summer Said, Julie Steinberg and Stephen Kalin scooped.

Next up is Vietnam, where Biden is working to take the countries’ relationship to the next level, with an eye on China, Bloomberg’s Akayla Gardner and Justin Sink report. The U.S. and Vietnam announced a new joint comprehensive strategic partnership this morning. Chipmaking could be another big agenda item: Major U.S. industry leaders are expected in Hanoi tomorrow for a meeting, Reuters’ Francesco Guarascio and Phuong Nguyen scooped.

2. BENEATH THE SURFACE: “Trump, the ultimate attention seeker, wages a campaign largely out of public view,” by Meridith McGraw: “[H]e’s not taking his eye entirely off the primary. In fact, he and his team are heavily engaged behind the scenes. In recent weeks, Trump allies have worked with officials in various states to ensure that rules around the rewarding of delegates benefit them. Trump’s campaign has warned state party officials against dealing with super PACs … Trump has worked donors … He’s had meetings with policy advisers and has churned out policy videos. … A man who once couldn’t resist a camera or crowd is doing a lot of his work outside of public view.”

3. ON THE TRAIL: Several Republican presidential candidates were in Iowa yesterday, where Trump hung out at a frat house and flipped burgers for the big Iowa-Iowa State football game. The Des Moines Register’s Galen Bacharier captures the scene: North Dakota Gov. DOUG BURGUM, still injured, rocked a scooter. ASA HUTCHINSON acknowledged that “people didn’t think I was good on the first debate stage.” And Florida Gov. RON DeSANTIS had this interaction with a University of Florida alum about the Gators: “‘They had a rough start to the season,’ DeSantis remarked as they snapped a photo. ‘Yeah, they need a new offensive coordinator,’ the man replied, to which the governor didn’t respond.”

 

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4. HOW HE GOT HERE: “The Brash Strategy That Made Vivek Ramaswamy a Fortune,” by WSJ’s Peter Rudegeair, Jared Hopkins and John McCormick: “The swagger and contrarianism that [VIVEK] RAMASWAMY displayed at the first Republican presidential primary debate last month … are the same qualities that propelled his 16-year business career. … That philosophy helped five drugs his companies developed later win approval, including treatments in women’s health and for a rare condition in children. But many times in his career, Ramaswamy bucked the consensus and was wrong.”

5. NOT ON BRAND: Trump’s official post-presidential office in West Palm Beach, Fla., funded by taxpayer dollars, is so quiet and out of the spotlight that even his campaign spokesman didn’t know it existed, NBC’s Jonathan Allen, Katherine Doyle, Lisa Rubin, Ken Dilanian and Jake Traylor reveal. The hallway outside the office doesn’t list Trump’s name, and sources say it’s full of boxes (contents unclear). Nonetheless, “[i]t has apparently housed classified material and, according to a person familiar with Trump’s operation, been searched by a private firm at the direction of Trump’s lawyers.” And various Trump aides have worked from there, raising some questions about the divide between official and campaign business.

6. SECOND THOUGHTS: “Blake Masters Reconsiders His MAGA Throwdown Against Kari Lake,” by The Daily Beast’s Zachary Petrizzo and Sam Brodey: “Suddenly … sources close to [BLAKE] MASTERS are doubting whether he will go through with a campaign that would entail a brutal cage fight of a primary match against his former ally. … Adding to the confusion, some Republican insiders told The Daily Beast they do believe that Masters will ultimately run. But the consensus within Arizona GOP circles was that Masters is a lot further from jumping in than it may have seemed.”

7. FATHER AND SON: Despite HUNTER BIDEN’s ongoing legal troubles, the president is keeping him as close as ever, NYT’s Katie Rogers reports in a deep look at their relationship. After Hunter’s plea deal fell apart, Biden “plunged into sadness and frustration,” and now seems a bit more resigned to his son’s prosecution. “But even allies of President Biden, who prides himself on his political and human instincts, say he has at times been too deferential to his younger son, appearing unwilling to tell him no, despite Hunter’s problems and his long trail of bad decisions. And that has created unexpected political peril for the president.”

8. RULE OF LAW WATCH: “As GOP investigates prosecutors, experts worry about judicial independence,” by WaPo’s Jackie Alemany: “The strategy has been effective in shaping public opinion of the investigations after years of sustained broadsides against the judicial system by Trump and his top allies. … [But] the party’s blitz of attacks on prosecutors threatens to degrade an important precedent that protects prosecutorial independence and the ability to fairly root out wrongdoing without partisan influence or gain, according to legal experts.”

9. TO TELL THE TRUTH SOCIAL: “Trump’s Truth Social Challenge Now Is to Get a Deal Done,” by WSJ’s Amrith Ramkumar and Keach Hagey: “To complete the deal, Trump Media needs regulators to approve financial statements documenting its recent business performance. That is normally a routine part of a public offering, but Trump Media hasn’t disclosed many details about its business in the two years since the merger was first announced. … The company and the SPAC also need to persuade hedge funds not to pull committed investments, despite delays that led to a retreat in Digital World’s shares.”

 

Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of the first episodes in September – click here.

 
 
PLAYBOOKERS

Joe Biden and Barack Obama congratulated Coco Gauff on her U.S. Open championship.

Mark Cuban and Vivek Ramaswamy got in a Twitter spat over education policy.

David Bonior got a bike path and towering tree sculpture dedicated to him.

OUT AND ABOUT — SPOTTED at a party last night at Juleanna Glover’s house for Jeffrey Toobin’s new book, “Homegrown: Timothy McVeigh and the Rise of Right Wing Extremism” ($29.99): Mary Louise Kelly, Carlos Lozada, Dana Bash, Sam Feist, Linda Douglass and John Phillips, Margaret Carlson, Norm Ornstein, Megan Smith, Michael Bromwich, Scott Simon, Ryan Grim, Neera Tanden, Craig Gordon, Jane Mayer and Bill Hamilton, David Chavern, Alexa Verveer, Sahil Kapur, Maralee Schwartz, Katie Benner, Sid Blumenthal and Alex Nazaryan.

WEDDING — Carl Holshouser, SVP of TechNet, and Andrew Smith, VP of TTR Sotheby’s, got married Aug. 28 in Capri, Italy. They met at a mutual friend’s house in D.C. PicSPOTTED: Stuart Spencer, Jason Redman, Adama Iwu, Gordon Johndroe, Patrick Fleming, David DeSantis, Todd Malan, Ebony Martin, Derrick Martin and Todd Metcalf.

WELCOME TO THE WORLD — Kayla Arslanian, executive secretary at the Treasury Department, and Nicholas Weatherbee, senior director for U.S. state government affairs at Corning Inc., on Aug. 30 welcomed Tigran Arslanian Weatherbee, who came in at 6 lbs, 6 oz. Pic

HAPPY BIRTHDAY: Sen. Cynthia Lummis (R-Wyo.) … Domestic Policy Council Director Neera TandenEmily BerretRenee HudsonJess McIntoshAndrew Shapiro of Beacon Global Strategies … Hunter Walker … DOJ’s Brian Farnkoff ... POLITICO’s Nahal Toosi and Tiffany CheungRichard Wolf … Fox News’ Trey Yingst … NYT’s Mara Gay Chuck RosenbergAurelien Portuese … FleishmanHillard’s Michael MoroneySara BonjeanAlex Bell … former Rep. Ted Poe (R-Texas) … former Sen. John E. Sununu (R-N.H.) … Meshal DeSantisJustin WileyMahen Gunaratna

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Correction: Yesterday’s Playbook misspelled Katherine Doyle’s name.

 

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