Jan. 27, 2021 01:54AM EST
Collins helps contractor after pro-Susan PAC gets donation
A PAC backing Sen. Susan Collins in her high-stakes reelection campaign received $150,000 from an entity linked to the wife of a defense contractor whose firm Collins helped land a federal contract, new public records show.
Why it matters: The executive, Martin Kao of Honolulu, leaned heavily on his political connections to boost his business, federal prosecutors say in an ongoing criminal case against him. The donation linked to Kao was veiled until last week.
<p><strong>Background: </strong>Through November, Kao was the CEO of the Martin Defense Group, known until last year as Navatek.</p><ul class="ee-ul"><li>In August 2019, Collins (R-Maine) <a href="https://www.collins.senate.gov/newsroom/senator-collins-joins-celebration-8-million-navy-contract-awarded-navatek-portland" target="_blank">helped Navatek</a> secure an $8 million U.S. Navy contract to design advanced ship hulls at its facility in Portland, Maine.</li><li>A few months later, in December 2019, a pro-Collins group dubbed 1820 PAC received a $150,000 contribution from a mysterious Hawaii LLC called the Society for Young Women Scientists and Engineers.</li><li>The Campaign Legal Center, a nonprofit ethics group, <a href="https://www.fec.gov/resources/cms-content/documents/clc_202842_complaint.pdf" target="_blank">filed an FEC complaint</a>, alleging the donation to the political action committee may have been designed to illegally obscure the true source of the funds.</li></ul><p><strong>What's new:</strong> Documents <a href="https://beta.documentcloud.org/documents/20463488-society-for-young-women-scientists-and-engineers-hi-corporate-filing" target="_blank">filed last week</a> with corporate regulators in Hawaii confirm the entity was run by Kao's wife.</p><ul class="ee-ul"><li>Corporate records had previously listed its sole officer as a woman named Jennifer Lam, closely resembling the name of Kao's wife, Tiffany Jennifer Lam. <a href="https://www.civilbeat.org/2020/02/tangled-web-of-campaign-cash-connects-hawaii-to-maine/" target="_blank">Initial efforts</a> to <a href="https://www.thedailybeast.com/americas-elections-are-becoming-contaminated-with-untraceable-cash" target="_blank">confirm her identity</a> failed.</li><li>The filing last week changed the entity's registered agent from Jennifer Lam to Martin Kao, confirming their connection.</li><li>Kao's attorney did not respond to a request for comment.</li></ul><p><strong>Be smart: </strong>There’s no indication that Collins was aware of the entity's donation, who was behind it or that the prospect of financial support influenced her decision to assist Navatek’s work.</p><ul class="ee-ul"><li>Nonetheless, the donation came just as Collins girded for a challenging — and extremely expensive — reelection fight. She ended up running against Democrat Sara Gideon, <a href="https://www.axios.com/2020-senate-elections-fundraising-66a15b67-ea03-4941-afa6-1d380a2681cf.html" target="_blank">who spent $76 million</a> on her unsuccessful campaign.</li><li>Collins got major support from 1820 PAC, which was <a href="https://www.thedailybeast.com/susan-collins-campaign-is-being-helped-by-a-mysterious-hawaii-company" target="_blank">closely aligned</a> with the U.S. Chamber of Commerce.</li><li>There’s no evidence of a quid pro quo, yet the Society for Young Women Scientists and Engineers' donation to the super PAC represented a significant cash infusion for an outfit that had benefitted from having a key Navatek ally in the Senate.</li><li>A Collins spokesperson had no comment.</li></ul><p><strong>Kao’s political connections were extensive, </strong>and his efforts to cultivate and exploit them are at the center of federal <a href="https://www.justice.gov/opa/pr/hawaii-ceo-charged-covid-relief-fraud" target="_blank">fraud and money laundering charges</a> against him.</p><ul class="ee-ul"><li>Prosecutors accuse Kao of fudging Navatek’s finances and payroll information to maximize the money the company and its subsidiaries received through the Paycheck Protection Program. It had been designed to keep small businesses afloat amid the coronavirus pandemic.</li><li>According to the indictment, Kao <a href="https://www.thedailybeast.com/alleged-covid-scammer-threatened-banks-with-his-dc-connections" target="_blank">pressured banks</a> to expedite fraudulent PPP loan applications by invoking his connections to powerful legislators in Washington.</li></ul></div>
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Jan. 27, 2021 01:52AM EST
Cutting corporate cash could push GOP to embrace party's rightward fringe
Companies pulling back on political donations, particularly to members of Congress who voted against certifying President Biden's election win, could inadvertently push Republicans to embrace their party's rightward fringe.
Why it matters: Scores of corporate PACs have paused, scaled back or entirely abandoned their political giving programs. While designed to distance those companies from events that coincided with this month's deadly siege on the U.S. Capitol, research suggests the moves could actually empower the far-right.
<ul class="ee-ul"><li>A <a href="https://www.journals.uchicago.edu/doi/full/10.1086/683453" target="_blank">2016 study</a> by Brigham Young University political scientist Michael Barber, which examined fundraising data and voting patterns in the 50 state legislatures, found that reductions in corporate PAC contributions resulted in more political polarization.</li><li>Limits on donations from corporations, which are largely non-ideological access-seekers, pushed candidates to rely more heavily on contributions from individual donors more likely to back stridently ideological candidates.</li><li>"It's not as though they're going to stop fundraising," Barber said of lawmakers who voted against certification. "They're just going to turn to other sources of money, and they're going to turn to individual contributors who are motivated by that exact type of behavior."</li></ul><p><strong>His study examined state legislatures, </strong>but data at the federal level underscores the divide between lawmakers who rely on individual versus corporate contributions.</p><ul class="ee-ul"><li>The top two non-leadership members of Congress in terms of individual fundraising in the 2020 cycle were Republican Rep. Devin Nunes of California and Democratic Rep. Alexandria Ocasio-Cortez of New York, both considered ideological standard-bearers of their respective parties.</li><li>The top two non-leadership recipients of PAC contributions, by contrast, are both prominent centrists: Reps. Richard Neal, a Massachusetts Democrat, and Rodney Davis, an Illinois Republican.</li></ul><p><strong>Google was the latest company</strong> to announce a major change in its political giving policies on Tuesday.</p><ul class="ee-ul"><li>It joined nearly 200 other companies that are rethinking their political giving in the wake of the Capitol attack.</li><li>The list includes more than 50 big-name corporations that, like Google, are yanking donations from Republicans who voted against certification. These include Disney, Pfizer, AT&T, Walmart and Amazon.</li></ul></div>
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Jan. 26, 2021 11:01PM EST
Tim Kaine, Susan Collins pitch Senate colleagues on censuring Donald Trump
Sens. Tim Kaine and Susan Collins are privately pitching their colleagues on a bipartisan resolution censuring former President Trump, three sources familiar with the discussions tell Axios.
Why it matters: Senators are looking for a way to condemn Trump on-the-record as it becomes increasingly unlikely Democrats will obtain the 17 Republican votes needed to gain a conviction in his second impeachment.
<p><strong>What we're hearing:</strong> Some Democrats are interested only if at least 10 GOP senators publicly commit to a censure, thus ensuring the 60-vote margin needed to pass major legislation in the chamber.</p><ul class="ee-ul"><li>It's still unclear whether a resolution would be in lieu of or come after a trial.</li></ul><p><strong>Driving the news: </strong>Kaine (D-Va.) and Collins (R-Maine) have been interested in a censure resolution for weeks now and have discussed it on multiple occasions. </p><ul class="ee-ul"><li>But the bipartisan discussions among senators grew more earnest after 45 Republicans voted today in favor of a motion to dismiss the trial because Trump is now out of office.</li><li>The vote was a clear indication he won't be convicted.</li></ul><p><strong>Between the lines: </strong>In some ways a censure vote could be more difficult for Republicans, because they can't rely on the argument that a resolution is unconstitutional — like they are for an impeachment conviction. </p><ul class="ee-ul"><li>It would also be a history-making vote. No other president has been censured after leaving office.</li></ul><p><strong>What they're saying: </strong>"I think it's pretty obvious from the vote today, that it is extraordinarily unlikely that the president will be convicted. Just do the math," Collins told reporters Tuesday afternoon.</p><ul class="ee-ul"><li>Kaine has said he wants to do whatever possible to keep the focus on the Biden-Harris agenda and COVID-19 relief, so he supports a speedy trial or alternate way to hold Trump accountable.</li></ul></div>
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Jan. 26, 2021 10:45PM EST
Anthony Coley to lead Justice Department public affairs
Judge Merrick Garland, President Biden’s nominee for attorney general, has tapped Anthony Coley, an Obama-era Treasury Department official, to serve as a senior adviser and lead public affairs at the Department of Justice, according to people familiar with the matter.
Why it matters: As the public face of the DOJ, Coley will help explain — and defend — the department's actions, from sensitive cases to prosecutorial decisions, including the investigation into Hunter Biden.
<ul class="ee-ul"><li>He’ll join <a href="https://twitter.com/mattzap/status/1352298889085411330" target="_blank">chief of staff</a> Matt Klapper, who held the same role for Sen. Cory Booker, and Dena Iverson, a DOJ veteran, who will serve as principal deputy director of public affairs.</li><li>Coley also worked for the late Sen. Ted Kennedy and served in President Obama’s Treasury Department under secretaries Tim Geithner and Jack Lew. He will start Monday.</li></ul><p><strong>The big picture</strong>: Garland is still waiting for his Senate confirmation hearing, during which Republicans plan to press the circuit judge on how he will handle the tax investigation into the president’s son, Hunter.</p><ul class="ee-ul"><li>But some Republicans, including Texas Sen. John Cornyn, have indicated they will support Garland’s nomination and the White House expects him to be confirmed. </li><li>Garland’s challenge will be to restore public trust in the department while also boosting morale among career officials.</li></ul><p><strong>Be smart</strong>: While Biden has filled out his Cabinet, hundreds of Democratic aides and operatives are still jostling for plum positions inside the administration.</p></div>
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Jan. 26, 2021 10:10PM EST
AP: Justice Dept. rescinds "zero tolerance" policy
President Biden's acting Attorney General Monty Wilkinson issued a memo on Tuesday to revoke the Trump administration's "zero tolerance" immigration policy, which separated thousands of migrant children from their families at the U.S.-Mexico border, AP first reported.
Driving the news: A recent report by Justice Department Inspector General Michael Horowitz emphasized the internal chaos at the agency over the implementation of the policy, which resulted in 545 parents separated from their children as of October 2020.
<p><strong>What they're saying: </strong>“Consistent with this longstanding principle of making individualized assessments in criminal cases, I am rescinding — effective immediately — the policy directive,” Wilkinson wrote in the memo, per AP. </p><ul class="ee-ul"><li>He added that the DOJ's standards have “long emphasized that decisions about bringing criminal charges should involve not only a determination that a federal offense has been committed and that the admissible evidence will probably be sufficient to obtain and sustain a conviction, but should also take into account other individualized factors, including personal circumstances and criminal history, the seriousness of the offense, and the probable sentence or other consequences that would result from a conviction.”</li></ul></div>
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Jan. 26, 2021 09:38PM EST
Biden makes a down payment on racial equity with a series of executive orders
President Biden is making a down payment on racial equity in a series of executive orders dealing with everything from private prisons to housing discrimination, treatment of Asian Americans and relations with indigenous tribes.
The big picture: Police reform and voting rights legislation will take time to pass in Congress. But with the stroke of his pen, one week into the job Biden is taking steps within his power as he seeks to change the tone on racial justice from former President Trump.
<ol class="ee-ol"><li><strong>Order #1: </strong>Directs the Justice Department not to renew contracts with private prisons. (This doesn’t apply to private prisons for immigration enforcement).</li><li><strong>Order #2:</strong> Directs the Department of Housing and Urban development to examine how previous administrations undermined fair housing policies and laws.</li><li><strong>Order #3</strong>: Calls for “re-establishing federal respect for tribal sovereignty” following years of tension between tribal governments and former President Trump.</li><li><strong>Order #4</strong>: Directs the Department of Health and Human Services to examine discrimination against Asian Americans and Pacific Islanders.</li></ol><p><strong>What they're saying: </strong>“Following four years of the Trump administration turning a blind eye to racial inequity and injustice at every turn, we are pleased that this new administration is centering its focus around issues impacting the lives and reality faced by people of color in this country," said <a href="https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUZca-2FLDMQC6luOOns3U2kmeQr3sL5q1ycHvybRYg2Xam7eum43GoPPIyJB-2B8FdylpA-3D-3DyV2O_kfZ8cLppmcXDuIHKWdMrLBjX6pvunISJEp-2B43rxVsaQdIk-2FefZL55PYy5acP2AKspEpZ2gIcfnA0YAez1z8BEuGd0CF0O4HDMXkxC5N2IT6ltyoWwHDWeA-2F-2FFwTrAJc4xDi2xUdCWwCtlIJiFMf2S1okB0zBKL0-2FeTqEaOPHVsOczIeuerPeftRtqHj72n2Bu1wWn21fRSqaYtJr-2BICxKv9DexYGuv9LSa71t4zRtk0ETwISUYbiKTyzNGKnMgSMLPfMzThVGZ2ZJMiLnRcbtU9-2F9o0yTTG3NAgEj6nhTEC5L6zIThHepxCc6iLes8pCXvGxsceT3pT5-2FDWQENrHTLgecgGlBs0u4h59X-2BgPnvo-3D" target="_blank">Dorian Spence</a> of the <a href="https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUZca-2FLDMQC6luOOns3U2kmdkEGbNeAk-2FWDpQkYbPFV8aOrL8_kfZ8cLppmcXDuIHKWdMrLBjX6pvunISJEp-2B43rxVsaQdIk-2FefZL55PYy5acP2AKspEpZ2gIcfnA0YAez1z8BEuGd0CF0O4HDMXkxC5N2IT6ltyoWwHDWeA-2F-2FFwTrAJc4xDi2xUdCWwCtlIJiFMf2S1okB0zBKL0-2FeTqEaOPHVsOczIeuerPeftRtqHj72n2Bu1wWn21fRSqaYtJr-2BICxKnfg6O2ofQ4xYBsG5LRXTVcxTsRJV1wYXscV2lLx-2F4ZxPswchAQFw95zAJcWkXJHCde6h5pq-2FR-2BJ64Yk2so3ZvCLxypHT7fg0Ue9qtml3fiqbZhpmMmOE2koeiEOovrWTxHF7nMbRV-2BgQ158mf3PK-2BE-3D" target="_blank">Lawyers’ Committee for Civil Rights Under Law</a>.</p><ul class="ee-ul"><li>Alicia Garza of Black to the Future Action Fund said the orders "are a floor to set and not the ceiling." </li><li>“It is encouraging to see a president promoting racial equity, instead of inciting racism,” said Robert McCaw of the Council on American-Islamic Relations.</li></ul><p><strong>Be smart:</strong> White racial justice advocates praised Biden’s executive orders, they will expect him to aggressively tackle poverty, voting rights, and police shootings of people of color.</p><ul class="ee-ul"><li>David Fathi, director of the ACLU’s National Prison Project, said the order on private prisons “is an important first step toward acknowledging the harm that has been caused and taking actions to repair it, but President Biden has an obligation to do more, especially given his history and promises."</li></ul><p><strong>The other side: </strong>Day 1 Alliance, a trade association of private prisons, denounced the executive order on private prisons and said they have little to do with mass incarceration.</p><ul class="ee-ul"><li>"The vast majority of contractor-operated facilities house criminal aliens who will be deported upon completion of their sentences, under a program created by Congress in the 1990s," the group said.</li></ul><p><strong>Flashback: </strong>Trump praised figures such as Robert E. Lee and former President Jackson to the dismay of many Black and Native Americans. He also explained his halting of diversity training in federal agencies, saying that “they were teaching people to hate our country." </p><p><strong>The bottom line:</strong> Racial justice advocates praised Biden's executive orders but expect him to do more to aggressively tackle poverty, voting rights and police shootings of people of color.</p><ul class="ee-ul"><li>"The order signed today is an important first step toward acknowledging the harm that has been caused and taking actions to repair it," said David Fathi, director of the ACLU’s National Prison Project.</li><li>"President Biden has an obligation to do more, especially given his history and promises."</li></ul></div>
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Jan. 26, 2021 08:21PM EST
Most Senate Republicans join Rand Paul effort to dismiss Trump's 2nd impeachment trial
Forty-five Senate Republicans, including Minority Leader Mitch McConnell, joined Sen. Rand Paul (R-Ky.) on Tuesday in an effort to dismiss former President Trump's second impeachment trial.
Why it matters: The vote serves as a precursor to how senators will approach next month's impeachment trial. The House impeached Trump for a second time for "incitement of insurrection" following events from Jan 6. when a pro-Trump mob stormed the Capitol.
<ul class="ee-ul"><li>Paul raised a point of order on Tuesday afternoon to hold a vote on the constitutionality of the impeachment trial, now that Trump is out of office. </li><li>Majority Leader Chuck Schumer then asked for a vote to "table" the motion, thus killing Paul's point of order, and that measure passed 55-45. </li><li>Five Republicans, Sens. Susan Collins(Me.), Lisa Murkowski (Alaska), Mitt Romney (Utah), Ben Sasse(Ne.), and Pat Toomey (Pa.), joined all Democrats to table Paul's point of order.</li><li>Minority Leader Mitch McConnell voted no, supporting Paul. </li></ul><p><strong>What they're saying:</strong> Earlier in the day, Paul indicated the vote would show "we're basically wasting our time" by impeaching Trump now that he's out of office.</p><ul class="ee-ul"><li>"I think there will be enough support on it to show there’s no chance they can impeach the president. If 34 people support my resolution that this is an unconstitutional proceeding it shows they don’t have the votes."</li><li>17 Republicans would need to join all Democrats in order to convict Trump. </li></ul><p><strong>What's next</strong>: Senators, who will serve as jurors during the trial, were sworn in Tuesday but the actual trial begins the week of Feb. 8. Sen. Patrick Leahy (D.-Vt.), the most senior Democrat in the Senate and pro tempore, will preside over the trial.</p><p><strong>The other side</strong>: Sen. Mitt Romney (R-Utah), who has been an open critic of Trump, <a href="https://www.axios.com/trump-impeachment-romney-constitutional-a4382637-36f7-43fe-8edc-38bdc2ec6676.html" target="_blank">said on CNN's "State of the Union</a>" that he's going to listen to what the lawyers have to say but believes "it's pretty clear the effort is constitutional."</p><ul class="ee-ul"><li>Sen. Lisa Murkowski (R-Alaska) told reporters on Tuesday that her review has led her to believe the trial is constitutional in recognizing that "impeachment is not solely about removing a president, it is also a matter of political consequence."</li></ul></div>
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Jan. 26, 2021 08:12PM EST
Texas judge temporarily halts Biden's 100-day deportation freeze
A federal judge in Texas has temporarily blocked the Biden administration's 100-day freeze on deporting unauthorized immigrants.
Why it matters: Biden has set an ambitious immigration agenda, but could face pushback from the courts.
<p><strong>The big picture: </strong>U.S. District Judge Drew Tipton, a Trump appointee, issued a temporary restraining order blocking the policy for 14 days. </p><p><div style="font-size:13px">
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</div></p><ul class="ee-ul"><li>Texas Attorney General Ken Paxton sued the Biden administration last week, claiming the freeze "<a href="https://www.axios.com/texas-ag-lawsuit-biden-dhs-deportation-immigrant-f1833f95-2e5c-4043-b4ed-f12f3516617e.html" target="_blank">violates</a> the U.S. Constitution, federal immigration and administrative law, and a contractual agreement between Texas" and the Department of Homeland Security, per a <a href="https://www.texasattorneygeneral.gov/news/releases/ag-paxton-sues-biden-administration-demanding-immediate-halt-unlawful-deportation-freeze#.YAsi5ajUiFg.twitter" target="_blank">press release from Paxton’s office</a>.</li><li>"The issues implicated by that Agreement are of such gravity and constitutional import that they require further development of the record and briefing prior to addressing the merits," Tipton wrote in his Tuesday order. </li><li>Tipton also said Texas has provided evidence that the freeze would result in "millions of dollars of damage" by spurring an increase in spending on public services for unauthorized immigrants, according to the judge’s order.</li></ul><p><strong>What they're saying: </strong>"Texas is the FIRST state in the nation to bring a lawsuit against the Biden Admin. AND WE WON," <a href="https://twitter.com/KenPaxtonTX/status/1354150952362790916" target="_blank">Paxton tweeted</a>. "Within 6 days of Biden’s inauguration, Texas has HALTED his illegal deportation freeze."</p><ul class="ee-ul"><li>Neither DHS nor Immigration and Customs Enforcement immediately responded to Axios' request for comment.</li></ul><p><strong>Of note:</strong> Former President Trump was frequently met with injunctions for his immigration policies.</p></div>
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