Monday, November 18, 2024

Gaetz under the squeeze

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By Rachael Bade and Eugene Daniels

With help from Eli Okun, Garrett Ross and Bethany Irvine

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DRIVING THE DAY

THE JAN. 20 AGENDA — “Trump’s immigration crackdown is expected to start on Day 1,” by Betsy Woodruff Swan and Myah Ward: “[DONALD] TRUMP’s team is already thinking about how to craft executive actions aimed to withstand the legal challenges from immigrants’ rights groups. … But legal fights aren’t the only long-term challenge Trump’s ambitious immigration agenda will face. The logistical challenges of mass deportation are a little harder to predict.”

PAGING SECRETARY PETE — “Spirit Airlines files for bankruptcy as financial losses pile up and debt payments loom,” by AP’s David Koenig

Rep. Matt Gaetz, R-Fla., talks with reporters on Capitol Hill, Friday, Oct. 20, 2023, in Washington. (AP Photo/Mariam Zuhaib)

Expect this to be a very uncomfortable week for former Rep. Matt Gaetz (R-Fla.). | AP

THE HEAT IS ON — Trump is dead serious about making him attorney general. Speaker MIKE JOHNSON is pledging to bury a critical House Ethics Committee report into his alleged personal misconduct. But expect this to be a very uncomfortable week for former Rep. MATT GAETZ all the same.

First off: An attorney representing two women who testified to both federal and House Ethics investigators about Gaetz’s alleged misdeeds is coming forward today with new details about what his clients told investigators. Lawyer JOEL LEPPARD is set to do multiple network TV interviews today as he pushes for the release of the House Ethics report, but he gave Playbook a sneak preview last night:

— His clients, he said, told investigators they attended more than five and as many as 10 “sex parties” with Gaetz between the summer of 2017 and the end of 2018, during his first term in the House. At those parties, they testified, there were “group sex situations” and illegal drugs were present.

— One of Leppard’s clients told investigators she witnessed Gaetz “having sex with her friend,” who was underage at the time, against what she recalled as some sort of game table, according to Leppard.

Gaetz, we’ll note, has strenuously and repeatedly denied any wrongdoing. The federal investigation that Leppard’s clients participated in ended without charges against Gaetz, according to his lawyers and DOJ officials.

But Leppard — and many on Capitol Hill — believe that a lack of criminal indictment is a much lower bar than a prospective AG should be meeting, and they are looking to the as-yet unpublished House Ethics report to provide further details. Leppard said his media blitz is aimed at protecting his unnamed clients, who have not ruled out coming forward in the future

“Ultimately, I hope it puts a lot of pressure on the panel to release the report,” he said. “My clients have already been through this several times and they really, really do not want to testify again, especially not on the floor of the Senate.”

Asked about the allegations, a spokesperson for the AG-designate made reference to the current AG: “MERRICK GARLAND’s DOJ cleared Matt Gaetz and didn’t charge him. Are you alleging Garland is part of a cover up?"

SPEAKING OF THE SENATE: The Democrats charged with vetting Trump’s nominees are privately exploring how to gather more information on the sexual misconduct allegations that are bearing down on both Gaetz and PETE HEGSETH, Trump’s pick for Defense secretary who, per WaPo, paid a settlement to a woman who accused him of sexual assault. (Like Gaetz, Hegseth has strongly denied wrongdoing.)

Importantly, Democrats are discussing what they can do now, while they hold the committee gavels and subpoena power that they will give up when the new Congress gets underway in January.

On the Senate Judiciary Committee, Democratic members have discussed requesting the FBI file on Gaetz, which could include records of any interviews conducted as part of the now-closed investigation. They’re likely to do so before the end of the year, knowing Trump could order those materials to be withheld once he assumes office.

They’re also considering making contact with the attorney of the woman who told the House Ethics Committee that Gaetz had sex with her when she was a minor. That lawyer, JOHN CLUNE, called for the report to be released “immediately” last week.

Public hearings aren’t under consideration at the moment, but Democrats say that behind-the-scenes conversations with the women’s representatives — or possibly interviews with women themselves — could serve as preparation for confirmation season should the GOP circle the wagons around Trump’s nominees.

Even in the minority, Democrats will get the right to call witnesses during confirmation hearings, and they are discussing the possibility of calling the women to testify if they are willing.

We ought to be marshaling all of the objective and relevant evidence necessary to assess the confidence, character and moral compass of each nominee,” said Sen. RICHARD BLUMENTHAL (D-Conn), who sits on the Judiciary and Armed Services panels. “And if those materials are denied, or concealed, and if witnesses with relevant information are willing to come forward, they should be given an opportunity to do so.”

That, Blumenthal added, includes the woman who accused Hegseth of sexual assault and subsequently signed a nondisclosure agreement.

“A private agreement on nondisclosure should be preempted by an Armed Services hearing on the confirmation of a nominee,” he said. “And we would expect any nominee to waive any rights under nondisclosure.”

Related read: “Trump Stands by Defense Pick Who Says Encounter With Woman Was Not Sexual Assault,” by NYT’s Maggie Haberman

While it might seem obvious that these nominations might be headed for a partisan food fight, we’ll note that several Senate Republicans have publicly called on House Ethics to release its report, including JOHN CORNYN (R-Texas), who sits on Judiciary, and MIKE ROUNDS (R-S.D.), who is close with incoming Majority Leader JOHN THUNE (R-S.D.). And the soon-to-be Judiciary chair, CHUCK GRASSLEY (R-Iowa), is a well-known oversight bull who has a pro-transparency reputation to uphold.

Also, as one Republican reminded us last night: If there’s anything that unites Democratic and Republican senators, it’s being told they can’t have information that they want. Expect a real confrontation if the House GOP holds firm on releasing the report.

Good Monday morning. Thanks for reading Playbook. Drop us a line: Rachael Bade and Eugene Daniels.

 

Scott Bessent speaks at the National Conservative Conference in Washington D.C., Wednesday, July 10, 2024. (Photo by Dominic Gwinn / Middle East Images / Middle East Images via AFP) (Photo by DOMINIC GWINN/Middle East Images/AFP via Getty Images)

Scott Bessent has been a frontrunner for Treasury secretary. | Dominic Gwinn/Middle East Images/AFP via Getty Images

TREASURY ISLAND — As Trump continues to chug quickly through his Cabinet, one major pick remains in flux: Treasury secretary. The apparent derby between hedge fund honcho SCOTT BESSENT and Cantor Fitzgerald CEO HOWARD LUTNICK has appears to have gone off the rails.

Over the weekend, ELON MUSK publicly backed Lutnick over Bessent, prompting the latter man to speak directly with the influential tech magnate, Bloomberg’s Saleha Mohsin, Joshua Green, and Annmarie Hordern report. Meanwhile, Lutnick’s effort to DICK CHENEY himself into the role as transition co-chair has reportedly annoyed Trump and cost him a clear shot at the nomination, Lutnick might have landed the role by now, The Bulwark’s Marc Caputo reports , but he’s turned off some people at Mar-a-Lago who see him as “too competitive, too aggressive, and too thirsty.”

So Trump is keeping his options open. Some Trump advisers are talking about shunting Lutnick to an ambassadorship, per Bloomberg, as ROBERT LIGHTHIZER, Sen. BILL HAGERTY (R-Tenn.) and MARC ROWAN emerge as potential Treasury dark horses. But NYT’s Jonathan Swan, Maggie Haberman, Jeanna Smialek and Alan Rappeport reported last night that Lighthizer is out (too pro-tariff for the stock market) and KEVIN WARSH, a former Fed governor, is a new possibility instead. Bessent is being considered for National Economic Council director as well, and Trump met with Lutnick yesterday, with more interviews coming this week.

 
WHAT'S HAPPENING TODAY

On the Hill

The Senate will meet at 3 p.m. to take up a judicial nomination, with a vote at 5:30 p.m.

The House will meet at noon and will take up several bills at 2 p.m., with votes postponed until 6:30 p.m.

3 things to watch …

  1. Chances for a full-year fiscal 2025 spending package faded further yesterday when Johnson said on “Fox News Sunday” that appropriators are “running out of clock” to clinch a deal ahead of the Dec. 20 deadline. “We're still hopeful that we might be able to get that done, but if not, we'll have a temporary measure, I think, that would go into the first part of next year,” he said. In such a scenario, “you'd have Republican control, and we'd have a little more say in what those spending bills are.” You’d also have a fight — both among Republicans and with Democrats — that could distract from everything else Trump wants to get done early next year.
  2. One thing that will have to be dealt with this year is disaster aid funding: The damage from hurricanes Helene and Milton have tapped out the federal Disaster Relief Fund and other aid programs, and White House Budget Director SHALANDA YOUNG this morning says in a memo that a formal supplemental funding request will be made in “the coming days.” Writes Young, “We look forward to working with Congress to quickly pass emergency funding so the Federal Government can meet its obligations to the American people.”
  3. The farm bill is another issue on the lame-duck to-do list, and by most accounts, lawmakers are headed toward passing a one-year extension amid a partisan impasse in negotiations. That’s not to say there isn’t movement on a larger deal, however: Outgoing Senate Agriculture Chair DEBBIE STABENOW (D-Mich.) plans to release a farm bill draft today, Meredith Lee Hill scooped for Pros. “The move appears to be an effort to spark some movement in the talks, or at least force a floor vote on the legislation,” she writes, even if the writing is on the wall for a short-term punt. 

At the White House

Biden is in Rio de Janeiro for the G20. At the Museum of Modern Art, he’ll go to an event launching the Global Alliance Against Hunger and Poverty, take part in the first G20 session and attend a leaders reception.

VP KAMALA HARRIS will have internal meetings and briefings.

 

REGISTER NOW: Join POLITICO and Capital One for a deep-dive discussion with Acting HUD Secretary Adrianne Todman, Rep. Darin LaHood (R-IL), Rep. Ritchie Torres (D-NY) and other housing experts on how to fix America’s housing crisis and build a foundation for financial prosperity. Register to attend in-person or virtually here.

 
 
PLAYBOOK READS

AMERICA AND THE WORLD

President Joe Biden walks to speak following a tour of the Museu da Amazonia, Sunday, Nov. 17, 2024, in Manaus, Brazil. (AP Photo/Manuel Balce Ceneta)

President Joe Biden is allowing Kyiv to strike Russia using American long-range missiles. | Manuel Balce Ceneta/AP Photo

BIDEN GOES THERE — Biden gave the green light to a major policy shift on Ukraine, allowing Kyiv to use American long-range missiles to attack within Russia after months of holding off on their request, NYT’s Adam Entous, Eric Schmitt and Julian Barnes and Reuters’ Mike Stone and Humeyra Pamuk scooped. Ukraine has long sought the change, but the U.S. was ultimately swayed by North Korea joining Russia’s invasion, and the early focus will be on protecting Ukrainian troops in Kursk from the combined forces. The move is meant more to send a message to Pyongyang, per the Times, and strengthen Ukraine’s eventual negotiating position, per Reuters, than to transform the war outright.

Using the ATACMS missiles in Russia could give Ukraine a boost, but U.S. officials have long been divided over the wisdom of this move: Some still fear it could prompt Russian retaliation against the West.

Biden’s decision prompted angry reactions from Republicans — in opposite directions, reflecting the GOP’s major bifurcations on foreign policy. House Intelligence Chair MIKE TURNER (R-Ohio) and Senate Armed Services ranking member ROGER WICKER (R-Miss.) slammed Biden for moving too slowly, saying he should have acquiesced to Ukrainian President VOLODYMYR ZELENSKYY much sooner on this, Paul McLeary, Joe Gould and Jack Detsch report. But more isolationist MAGA figures like RICHARD GRENELL and DONALD TRUMP JR. decried Biden for raising the war’s stakes right before Trump takes office, calling it an escalatory move toward “World War 3.”

More top reads:

  • Climate files: Biden vowed in the Amazon yesterday that the clean energy transition can’t be stopped, but he also urged Trump (not by name) not to shred his administration’s climate initiatives, Lauren Egan and Myah Ward report from Manaus, Brazil. Some of Biden’s announcements of U.S. action were just symbolic or require unlikely GOP congressional support. But in Rio de Janeiro, G20 negotiators have found a tentative deal on climate financing that has eluded the U.N. at COP29, Reuters’ Jake Spring and Lisandra Paraguassu report.

TRANSITION LENSES

Brendan Carr, a Federal Communications Commission commissioner, speaks during a Senate Commerce, Science, and Transportation committee hearing to examine the Federal Communications Commission on Capitol Hill in Washington, Wednesday, June 24, 2020. (Alex Wong/Pool via AP)

Brendan Carr has garnered headlines in recent months for his vocal criticism of Biden on broadband and for his alliance with Elon Musk. | Alex Wong/Pool via AP Photo

KEYS TO THE CARR — BRENDAN CARR is Trump’s pick for FCC chair, the president-elect announced last night. Carr, already a commissioner, will take control immediately upon Trump’s arrival in office. But he’ll likely need another Republican commissioner to get confirmed to gather momentum for undoing net neutrality and digital discrimination rules and getting tougher on Big Tech, John Hendel reports. With help from Congress, Carr could also give the private sector more wireless spectrum.

Carr has garnered headlines in recent months for his vocal criticism of Biden on broadband and for his alliance with ELON MUSK. He also wrote part of the Heritage Foundation’s Project 2025 about the FCC getting involved in social media content moderation debates. That’s what he leaned into immediately on X : “We must dismantle the censorship cartel and restore free speech rights for everyday Americans.” Carr “could drastically reshape the independent agency, expanding its mandate and wielding it as a political weapon for the right,” by seeking to oversee Silicon Valley or punish TV networks, NYT’s Cecilia Kang writes.

More top reads:

  • Sports blink: Trump played golf with PGA Tour commissioner JAY MONAHAN on Friday and sat next to LIV Golf Saudi executive YASIR AL-RUMAYYAN on Saturday, WaPo’s Rick Maese reports.
  • By the numbers: “Exclusive data: Trump’s record pace for Cabinet picks,” by Axios’ Mike Allen: “That’s five times faster than President Biden made the same number of picks for his administration — and four times faster than Trump’s pick for his first administration, according to calculations for Axios by DAVID MARCHICK.”

POLICY CORNER

RETRIBUTION REPORT — Will Trump really launch targeted criminal investigations or other legal retribution against his political adversaries? MARK ZAID, an attorney representing many potential targets, tells Ian Ward that he’s taking Trump’s threats seriously. He has advised a handful of clients to go on international vacation for the first few days of Trump’s presidency and be able to watch what happens from afar at first.

WEIGHT FOR IT — “Doctors say RFK Jr.’s anti-Ozempic stance perpetuates stigma and misrepresents evidence,” by CNN’s Meg Tirrell

SCHOOL TIES — How much can Trump transform America’s schools toward more conservative stances? WaPo’s Laura Meckler and Hannah Natanson report that shuttering the Education Department is unlikely. But congressional Republicans could pass legislation for a “parents’ bill of rights,” barring transgender girls from playing female sports or establishing tax incentives for school voucher donations. And the Education Department could threaten investigations of school districts that have certain diversity programs, say, or allow transgender students to use bathrooms in line with their gender identity.

FUN AND GAMES — Hasbro chief executive CHRIS COCKS tells WSJ’s Ben Glickman and Natasha Khan that Trump’s China tariffs could make popular toys and games more expensive, as it will take time for the company to move supply chains to other countries.

ONE WAY TO ENSURE MORE POLLSTER HERDING — Trump yesterday on Truth Social called for an investigation of ANN SELZER for getting the presidential race wrong in Iowa.

JUDICIARY SQUARE

THE JAN. 6 CASES — The lawyer for Jan. 6 defendant THOMAS OSBORNE said in a new filing that he’d spoken with a top Trump figure and been told a pardon “is almost a certainty,” per Kyle Cheney.

BEYOND THE BELTWAY

FRONTIERS OF SCHOOL CHOICE — “Ohio offers a new way to use public money for Christian schools. Opponents say it’s unconstitutional,” by AP’s Julie Carr Smyth in Columbus: “The Ohio case shows how governments can push the envelope to funnel money to private schools. The state has put a small part of its budget surplus toward competitive grants for expanding and renovating religious schools. Most of the winning construction projects are associated with the Center for Christian Virtue, an Ohio-based advocacy group that’s seen its revenues balloon amid the state’s push to expand religious educational options.”

 

The lame duck session could reshape major policies before year's end. Get Inside Congress delivered daily to follow the final sprint of dealmaking on defense funding, AI regulation and disaster aid. Subscribe now.

 
 
PLAYBOOKERS

Sonya Massey’s killing is now under DOJ investigation.

Kari Lake settled Stephen Richer’s defamation case against her.

MARK YOUR CALENDAR — New Yorkers did Timothée Chalamet. Chicagoans did Jeremy Allen White. Now, on Nov. 24, Washington will compete to see who looks most like Jack Schlossberg.

OUT AND ABOUT — SPOTTED at CPAC Mar-a-Lago this weekend: President-elect Donald Trump, Speaker Mike Johnson, Argentine President Javier Milei, North Dakota Gov. Doug Burgum, Chris Wright, FCC Commissioner Brendan Carr, Matt and Mercedes Schlapp, Matt Whitaker, Vivek Ramaswamy, Rep. Byron Donalds (R-Fla.), RNC Chair Michael Whatley, Steve Bannon, Erik Prince, Gordon Chang, Vince Haley, Nick Luna, Scott Baio, Sebastian Gorka and Eduardo Verástegui.

— SPOTTED at the U.S. Chamber of Commerce’s welcome reception and college football watch party for new members of Congress on Saturday: Reps.-elect Abe Hamadeh (R-Ariz.), Brandon Gill (R-Texas), Eugene Vindman (D-Va.), George Latimer (D-N.Y.), Jeff Hurd (R-Colo.), Jefferson Shreve (R-Ind.), John McGuire (R-Va.), Herb Conaway Jr. (D-N.J.), Mark Messmer (R-Ind.), Marlin Stutzman (R-Ind.), Michael Baumgartner (R-Wash.), Mike Haridopolos (R-Fla.), Pat Harrigan (R-N.C.), Ryan Mackenzie (R-Pa.), Sam Liccardo (D-Calif.), Tom Barrett (R-Mich.) and Troy Downing (R-Mont.), Rep. Greg Murphy (R-N.C.), Roy Blunt, Rodney Davis and Neil Bradley.

At GlobalWIN’s holiday party Friday night, Helen Milby and Melika Carroll surprised host British Ambassador Karen Pierce with a handbag that flashes neon “Wonder Woman,” presented to Pierce at her residence by Lynda Carter. Also SPOTTED: Reps. Ami Bera (D-Calif.) and Jennifer McClellan (D-Va.), Rep.-elect April McClain Delaney (D-Md.), Luxembourg Ambassador Nicole Bintner-Bakshian, EU Ambassador Jovita Neliupšienė, Greek Ambassador Ekaterini Nassika, Irish Ambassador Geraldine Byrne Nason, Nicole Mortier, Angeli Chawla, Ashleigh de la Torre, Rosalyn Kumar, Jennifer Curley, Tiffany Moore, Amanda Slater, Rachel Welch, Keenan Austin Reed, Liz Johnson, Caitlyn Stephenson, Kalina Thompson, Ashley Callen and Tammy Haddad.

FIRST IN PLAYBOOK — Petkanas Strategies is combining forces with Kyle Herrig to relaunch as Focal Point Strategy Group. Herrig, who most recently led the Congressional Integrity Project’s efforts to combat House Republicans’ investigations of the Biden administration, will join Zac Petkanas as a founding partner.

TRANSITIONS — Sen.-elect Ruben Gallego (D-Ariz.) is staffing up with his first four hires: Raphael Chavez-Fernandez as chief of staff, Abigail O’Brien as state director, Jacques Petit as comms director and Jose Contreras as director of operations. All are alums of Gallego’s House office, with O’Brien and Petit most recently working for the Harris campaign in Arizona.

WEEKEND WEDDINGS — Katie Webster, director of government affairs at Growth Energy, and Tim Cummings, chief of staff for Rep. William Timmons (R-S.C.), got married Saturday at All Saints Church, with a celebration at the Chevy Chase Club. Pic

— Adam Webb, comms director for Sen. Thom Tillis (R-N.C.), and Megan Myers, multimedia producer for FIRE and a Fox News alum, got married this weekend at the Clifton Inn in Charlottesville, Virginia. They met at a house party in D.C., where Meg was supposed to be set up with one of Adam’s best friends — but instead Meg and Adam hit it off, and the friend officiated their wedding. Pic

WELCOME TO THE WORLD — Daniel Lippman, a White House and Washington reporter for POLITICO and former Playbook co-author, and Sophia Narrett, an artist who shows with Kohn Gallery and Perrotin, recently welcomed a baby girl. Pic

HAPPY BIRTHDAY: Reps. Bruce Westerman (R-Ark.) and Salud Carbajal (D-Calif.) (6-0) … NYT’s Sheryl Gay Stolberg … POLITICO’s Matt Wuerker, Hailey Fuchs, Brooke Sommers and Heidi Przybyla … WaPo’s Theo MeyerMegyn KellyDan Sadlosky of RTX … NBC’s Tom Namako and Morgan Radford Paige Hutchinson of Rep. Colin Allred’s (D-Texas) office … Brian Forest of Arboreal Communications … Drew Brandewie of Sen. John Cornyn’s (R-Texas) office … DCCC’s Robert Dougherty Ryan Caldwell of J.A. Green & Co. … Brannon Rains of the House Energy and Commerce GOP … Carrie Matthews … former Reps. J.C. Watts (R-Okla.) and Tom Reed (R-N.Y.) … Abby TinsleyKaren DunnDeirdre SchifelingAdali Hernandez of the Trevor Project … Amber MankoAbigail Marone Joel Mendelson of New Heights Communications … Arshad Hasan

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