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House ethnics panel opens probe of Matt Gaetz amid federal sex trafficking investigation

The House Ethics Committee announced Friday it has launched an investigation into Rep. Matt Gaetz (R-Fla.), who is facing a federal probe into sex trafficking allegations.

Driving the news: The panel said it is aware of allegations that Gaetz "may have engaged in sexual misconduct and/or illicit drug use, shared inappropriate images or videos on the House floor, misused state identification records, converted campaign funds to personal use, and/or accepted a bribe, improper gratuity, or impermissible gift."


  • Gaetz has denied allegations of being sexually involved with a 17-year-old, telling Axios in an interview last month that the investigation is "rooted in an extortion effort against my family for $25 million."
  • Gaetz has also denied claims he shared naked images of women to other Congress members.

What they're saying: The panel said in a statement it has "begun an investigation and will gather additional information regarding" the allegations.

  • "The Committee notes that the mere fact that it is investigating these allegations, and publicly disclosing its review, does not itself indicate that any violation has occurred, or reflect any judgment on behalf of the Committee."
  • Gaetz's office said in a statement to CNBC: "Once again, the office will reiterate, these allegations are blatantly false and have not been validated by a single human being willing to put their name behind them."

The big picture: The House panel also said it opened an investigation into Rep. Tom Reed (R-N.Y.), who was accused of sexual misconduct.

  • Nicolette Davis, a former lobbyist, told the Washington Post in March that Reed unhooked her bra without her consent at a Minneapolis bar in 2017.
  • Reed declined to comment to the Post at the time beyond issuing a statement that said, "This account of my actions is not accurate."
  • He later apologized to his family and announced he won't seek reelection in 2022.

Go deeper: GOP Rep. Adam Kinzinger calls for Rep. Matt Gaetz to resign

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Trump-appointed federal judge rules against third-country asylum rule

A federal judge in Washington, D.C., ruled against the Trump administration's third-country asylum rule late Tuesday.

Why it matters: Per Neal Katayal, a lawyer involved in the legal challenge, the District Court decision "invalidates" the transit ban. Axios has contacted the Trump administration for comment.

NEW: U.S. District Judge Timothy Kelly, a Trump appointee, ruled that the Trump admin's asylum restrictions on migrants who crossed through a 3rd country en route to the U.S. are illegal under administrative law pic.twitter.com/G8vO1baNBw

— Suzanne Monyak (@SuzanneMonyak) July 1, 2020

Go deeper: Trump administration proposes toughest asylum rules yet

Editor's note: This is a developing news story. Please check back for updates.

Auto sales may have turned a corner despite coronavirus pandemic

U.S. auto sales have bounced back in recent months despite the coronavirus pandemic, with some brands even seeing their sales increase over 2019's numbers at this point in the year.

Why it matters: Cars and trucks were seen as one of the sectors that would be hardest hit as Americans were called to stay home from work and entertainment destinations were shuttered.

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Fauci says transition delay harmful to public health as COVID-19 cases surge

NIAID Director Anthony Fauci said on CNN's "State of the Union" Sunday that President Trump's refusal to cooperate with President-elect Biden's transition team hurts public health as coronavirus cases surge across the country.

The state of play: As President Trump refuses to concede the election to President-elect Joe Biden, General Services Administration Administrator Emily Murphy has not signed documents declaring Biden the apparent winner, preventing the president-elect's agency review teams from having access to the information they need in order to get to work.

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Small business Paycheck Protection Program to restart next week

The next round of Paycheck Protection Program loans will open on Monday, albeit not for everyone.

Why it matters: As evidenced by this morning's bleak jobs report, many businesses continue to be battered by the surging pandemic.

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