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In One Executive Order, Trump Revoked Years of Workplace Protections for Women

Mother Jones

In 2014, President Barack Obama signed the Fair Pay and Safe Workplaces executive order. It required companies with federal contracts to heed 14 different labor and civil rights laws, including ones aimed at protecting parental leave, weeding out discrimination against women and minorities, and ensuring equal pay for women and fair processes surrounding workplace sexual harassment allegations.

Last week, Trump revoked this order, leaving workers at thousands of companies much more vulnerable to a host of abuses from their employers—and undoing protections meant to create more equitable workplaces for women.

“We have an executive order that essentially forces women to pay to keep companies in business that discriminate against them—with their own tax dollars,” Noreen Farrell, the director of Equal Rights Advocates, told NBC. “It’s an outrage.”

One provision of the now-revoked order required paycheck transparency by companies holding federal contracts, in which they had to provide all employees with detailed statements of their hours and compensation—a measure that’s particularly important for protecting workers against wage theft. A second provision that was jettisoned banned the use of forced arbitration clauses by federal contractors in handling sexual harassment or discrimination claims in their workplaces. These types of clauses—which require allegations to be settled privately outside of court in usually secret proceedings—are a way for companies to preemptively keep sexual harassment allegations out of the public eye.

Trump’s order also revokes the requirement that companies seeking federal contracts disclose three year’s worth of violations of the Equal Employment Opportunity executive order, first signed in 1965 by President Lyndon Johnson and since amended to include protections surrounding gender. The order now states that companies with federal contracts “will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin.”

Nor will companies bidding on federal contracts be required to reveal their last three year’s worth of violations of the Family and Medical Leave Act, which requires that many companies provide 12 weeks of unpaid leave to new parents.

The day before President Trump signed this order, it was reported that his daughter Ivanka—who has regularly spoken about her father’s plans to improve protections for working moms, and who is currently pushing a child care tax credit as part of the administration’s upcoming tax reform initiative—would represent the United States at an upcoming women’s empowerment summit in Berlin. Here is her tweet:

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In One Executive Order, Trump Revoked Years of Workplace Protections for Women

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Jared Kushner Is Puzzled That CNN Hasn’t Fired All Its Anti-Trump Commentators

Mother Jones

Jonathan Mahler has a piece in the New York Times Magazine today about the love-hate relationship between Jeff Zucker, the president of CNN, and Donald Trump, the president of the United States. It’s mainly about how both men thrive on politics as gossip, entertainment, and conflict, but it includes one interesting tidbit at the very end. It’s about a breakfast meeting Zucker had last December with Ivanka Trump’s husband, Jared Kushner, who has become an increasingly important Trump advisor in the White House:

Kushner wanted to know why CNN still hadn’t fired anti-Trump commentators like Van Jones and Ana Navarro, who said on CNN in October that every Republican would have to answer the question of what they did the day they saw a tape of “this man boasting about grabbing a woman’s pussy.”…Zucker tried to explain that even though Trump won, the network still needed what he described as “a diversity of opinion.”

I’m not sure if I’m supposed to take this literally or seriously. Did Kushner really think that this was how a news organization was supposed to work? That once Trump won, all the folks who didn’t like Trump would be fired in some kind of Stalinesque purge?

Apparently so. Welcome to the Trump Show.

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Jared Kushner Is Puzzled That CNN Hasn’t Fired All Its Anti-Trump Commentators

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Trump Can Pull Money From His Businesses Whenever He Wants—Without Ever Telling Us

Mother Jones

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This story originally appeared on ProPublica.

When President Donald Trump placed his businesses in a trust upon entering the White House, he put his sons in charge and claimed to distance himself from his sprawling empire. “I hope at the end of eight years I’ll come back and say, ‘Oh you did a good job,'” Trump said at a January 11 press conference. Trump’s lawyer explained that the president “was completely isolating himself from his business interests.”

The setup has long been slammed as insufficient, far short of the full divestment that many ethics experts say is needed to avoid conflicts of interest. A small phrase buried deep in a set of recently released letters between the Trump Organization and the government shows just how little separation there actually is.

Trump can draw money from his more than 400 businesses, at any time, without disclosing it.

The previously unreported changes to a trust document, signed on February 10, stipulate that it “shall distribute net income or principal to Donald J. Trump at his request” or whenever his son and longtime attorney “deem appropriate.” That can include everything from profits to the underlying assets, such as the businesses themselves.

Here is the new clause, from page 161:

“It’s incredibly broad language,” said Frederick J. Tansill, a family estate and trust attorney outside Washington, DC, who reviewed the documents for ProPublica.

There is nothing requiring Trump to disclose when he takes profits from the trust, which could go directly into his bank or brokerage account. That’s because both the trust and Trump Organization are privately held. The only people who know the details of the Trump trust’s finances are its trustees, Trump’s son Donald Jr., and Allen Weisselberg, the company’s chief financial officer. Trump’s other son, Eric, has been listed as an adviser to the trust, according to this revised document.

The Trump Organization did not answer detailed questions about the trust. In a statement to ProPublica about the companies’ corporate structures, a Trump Organization spokeswoman, Amanda Miller, said, “President Trump believed it was important to create multiple layers of approval for major actions and key business decision” (Sic. Read the full statement.)

There is a chance Trump will list his profits in his next federal financial disclosure, in May 2018, but the form doesn’t require it. The surest way to see what profits Trump is taking would be the release of his tax returns—which hasn’t happened. Income has to be reported to the IRS, whether it comes from a trust or someplace else.

“For tax purposes, it’s as if the trust doesn’t exist at all,” said Steven Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center. “It’s just an entity on paper, nothing more.”

It’s not clear why Trump added the language to the trust document. His original trust document, which ProPublica obtained in January, designated Trump as the “exclusive beneficiary.” It did not include any restrictions on when Trump could get the money.

Taking profits regularly could benefit Trump in a variety of ways. It would give the president yet more details on the ongoing finances of his businesses. Trump’s son Eric recently told Forbes he plans to update his father on the company regularly, though the revised trust document states that the trustees “shall not provide any report to Donald J. Trump on the holdings and sources of income of the Trust.”

Trump could also simply find the income helpful, even as president. The trust document shows that Trump has “broad rights to the trust principal and income to support him as necessary,” Tansill said.

The General Services Administration released the document last week when it approved the Trump Organization’s plan to address conflicts involving the Trump International Hotel in DC. (The GSA, which handles procurement for the government, owns the land and Trump has a 60-year lease for the building.) In response to criticism about Trump being, in effect, both tenant and landlord, he agreed to not take any profits from the hotel while in office.

Profits will go into a separate company account, which can only be used for hotel upkeep, improvements or debt payments. Watchdog groups have derided that deal as insufficient, noting that pouring profits back into the hotel will make it more valuable in the long term.

With Trump’s hundreds of other businesses, including golf courses, hotels and branding deals, profits from each go to a holding company and eventually into Trump’s trust. Other corporate documents we obtained, reflecting changes made after Trump’s January 20 inauguration, show how money flows from a golf club outside Philadelphia to the president’s trust.

There soon could be many more Trump family businesses.

The Trump Organization has recently touted plans to open hotels across the country, including a second one in Washington, DC. “It’s full steam ahead,” Trump Hotel CEO Eric Danziger said recently. “It’s in the Trump boys’ DNA.”

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Trump Can Pull Money From His Businesses Whenever He Wants—Without Ever Telling Us

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A Lot of Trump Voters Only Heard One Thing: Build the Wall

Mother Jones

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The Washington Post has a story on the front page today that’s already become so common it’s almost a cliche. It’s about the small-town folks who voted for Donald Trump but somehow didn’t realize he was going to do things that might harm them. Today’s example features on-the-ground reporting from Durant, Oklahoma, and Exhibit A is Betty Harris:

She likes the president’s promises to crack down on illegal immigration, which she thinks has hurt the job market, and to bully manufacturers into staying in the country. She said both of her daughters were out of work for months because they worked for companies that moved overseas.

But Harris is upset by the president’s proposed budget, which would dramatically cut funding for the Robert T. Davis Senior Center, managed by the Bryan County Retired Senior Volunteer Program.

There seem to be an awful lot of people who heard only one thing from Trump during the campaign: He was going to build a wall and keep out all the Mexicans. Now, as best I can tell, the unauthorized population of Durant is at most 1 percent. But no matter. Illegal immigration still seemed like a scary thing, and Harris was all in favor of stopping it cold.

Over and over, I read stories where I hear this. Trump got the votes of people who liked his promise to stop illegal immigration. And that was about it. They didn’t really hear the part about repealing Obamacare. They didn’t hear the part about cutting the budget. They didn’t hear the part about climate change being a hoax. They didn’t hear the part about 86ing regulations that protect workers but are disliked by big corporations. They didn’t hear the part about big tariffs, which would make the stuff they buy more expensive. They didn’t hear the part—or didn’t care—about gigantic tax cuts for the rich.

Over and over, it’s illegal immigration. And now they’re shocked that Trump wants to take away their health care and their senior center and their workplace safety rules and all the financial regulations that protect consumers. They didn’t notice him talking about all of that. Or else they didn’t think he was serious. Or they didn’t realize that when they voted for Trump, they were voting for a White House full of true-believing conservatives who have never cared about the working class and still don’t.

The saddest part, from their point of view, is that they’re probably not even going to get their wall. They’re just going to get all the stuff they didn’t want.

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A Lot of Trump Voters Only Heard One Thing: Build the Wall

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Clean Up On Aisle Trump

Mother Jones

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In early March, a procession of lawyers in boxy suits and overcoats crowded into a chandeliered dining room at Tony Cheng’s in Washington, DC’s Chinatown. Justice Department attorneys passed heaping plates of beef with broccoli and spring rolls to corporate law firm partners and think tank fellows in bow ties. A sign taped to the restaurant’s entrance announced the event was sold out, and regulars of the Federalist Society’s monthly luncheon marveled at the turnout. The featured guest was Donald F. McGahn II, who had recently ascended to one of Washington’s most influential legal perches, White House counsel.

After the fortune cookies were distributed, C. Boyden Gray, a former White House counsel to George H.W. Bush and a Federalist Society board member, approached the microphone. McGahn was stuck at the White House dealing with a “pressing matter,” he informed the disappointed audience. Gray didn’t elaborate. He didn’t need to: The night before, the Washington Post had revealed that Attorney General Jeff Sessions, who had told the Senate that he had no contact with Russian officials during the presidential campaign, had in fact met twice with Russia’s ambassador.

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Hours after the Federalist Society luncheon let out, Sessions recused himself from ongoing investigations into ties between the Trump campaign and Russia. President Donald Trump spent the next day fuming at his staff—particularly McGahn, who had to explain to the incensed commander in chief that Sessions’ recusal was the AG’s decision alone. Early the next morning, Trump rattled off a series of tweets accusing Barack Obama of wiretapping Trump Tower during the presidential campaign. McGahn was soon on a plane to Mar-a-Lago; his surreal task was to figure out how the administration might retroactively prove an explosive allegation that Trump had tossed out without evidence.

As the top legal adviser to the president, the White House counsel is one of the most vital positions in any administration. The counsel vets executive orders and nominees, reviews the legal aspects of national security matters, and monitors compliance with federal ethics laws. Rarely does an order or a memo leave the White House without the counsel’s sign-off. Gray says that during his time as counsel, his office received four times more paperwork than any other White House department. (This was before email.) A former Obama White House counsel told me, “People used to say to me, ‘You and the chief of staff are the only two people who really touch everything.'”

Above all, the White House counsel’s role is to keep the president out of trouble, legal or otherwise. With Trump, that’s a Herculean task. McGahn has represented scandal-plagued Republicans—Tom DeLay was a client—but the controversy and chaos engulfing the Trump White House are another order of magnitude. McGahn represents the most conflict-ridden commander in chief in the nation’s history. He has spent his short time in the White House constantly rushing to put out fires.

On paper, McGahn, who is 48, wasn’t an obvious choice for White House counsel. He has never previously worked in a presidential administration, and he has all the attributes of the Washington elites whom Trump has denounced. (One attendee of McGahn’s 2010 wedding says it was like “a convention for election lawyers.”) Trump vowed to get big money out of politics, while McGahn has spent much of his legal career helping candidates and donors stretch the limits of campaign finance laws. “The irony is that Trump campaigned on ‘draining the swamp,'” says Dan Weiner, a lawyer at the Brennan Center for Justice, “but it’s my impression that Don thinks the ‘swamp’—at least as many good-government types would define it—is necessary and constitutionally protected.” (McGahn did not respond to multiple requests for comment.)

Yet on another level, McGahn is ideally suited for a job in the Trump White House. The administration’s deregulatory agenda—the “deconstruction of the administrative state,” as chief strategist Stephen Bannon put it—is perfectly in sync with McGahn’s libertarian views. To carry out that mission, he has put together a team of nearly 30 lawyers, many of whom are experts in federal law and how to unravel it. McGahn has plenty of experience dismantling the bureaucracy from within: That was precisely the program he pursued for five years while serving on the Federal Election Commission. “He didn’t care about the institution, and he seemed mostly interested in grinding its work to a halt,” says David Kolker, a former associate general counsel at the FEC who worked alongside McGahn. “Don had a blow-it-up mentality.”

Before recent renovations, visitors to the ninth floor of the FEC’s headquarters, where the commissioners have their offices, were greeted by a wall of black-and-white photographs—headshots of all 23 commissioners who had served the agency since its founding in 1975. All except one.

McGahn, who was on the FEC from 2008 to 2013, had refused to sit for his official photo. It was his way of dispelling the notion that he had any affinity for his employer. The way he saw it, he was reining in an overzealous bureaucracy that trampled the rights of ordinary Americans. No commissioner has done more to change the agency.

In the late 1990s and early 2000s, McGahn carved out a niche as the go-to lawyer for House Republicans and spent nearly a decade representing the National Republican Congressional Committee, the political arm for House Republicans. When House Majority Leader Tom DeLay was accused of ethics violations, partly in connection with the Jack Abramoff lobbying scandal, McGahn led his legal defense. (DeLay resigned from Congress but was exonerated in 2013.) In 2005, McGahn hung his own shingle and built a modest practice focusing on election-related cases. (He’d convinced the NRCC to keep him on retainer as its general counsel—an unorthodox and lucrative arrangement.) He developed a reputation as a fierce ideologue with a deep understanding of the law, but within the clubby network of election lawyers, he cut an odd figure. He lacked an Ivy League pedigree, wore his hair long, and spent weekends playing guitar in local rock bands. (His latest, Scott’s New Band, which advertised itself as “one of the Mid-Atlantic region’s most exciting and flat-out FUN cover bands,” split up in December as McGahn prepared to enter the White House.) “He is kind of an iconoclast,” says James Bopp, a prominent conservative election lawyer.

Don McGahn and his band play in Ocean City, Maryland in 2011.

Republicans had floated McGahn in the 2000s to fill an open seat on the FEC. He never hid his disdain for the independent agency—a perspective that undoubtedly appealed to lawmakers who thought of the agency as a nuisance. “The original intent was for it to be a glorified congressional committee,” he said in 2001. Nodding to the fact that the commission is appointed by the same people—members of Congress—whom it regulates, McGahn acknowledged that “you have the charge of the fox guarding the hen-house.”

Congress designed the FEC to ensure bipartisanship, mandating that the six-member commission have no more than three members from either party. The commission can’t act without a four-vote majority. But in 2008, in what some commissioners call the “dark ages,” it was down to two members. Without a quorum, the agency could do little more than run its website and keep the lights on.

Senate leaders Harry Reid and Mitch McConnell cut a deal in the summer of 2008 to end the FEC’s impasse when they confirmed a slate of new commissioners, McGahn among them. From the beginning, McGahn made clear he felt no kinship with his new employer. “A lot of the staff said, ‘Welcome to the agency. It’s so nice to have you join us,'” recalls Eric Wang, an election lawyer who got to know McGahn while working for another Republican commissioner. “He made a point of saying, ‘I’m not joining you,'” making it clear that he was not there to collaborate with the career agency staff, but rather to serve as a check on them.

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The FEC has always suffered from partisan infighting. Still, former Democratic and Republican commissioners say they largely viewed their job as enforcing the law and finding four-vote majorities on the cases before them. That seemed to change with the arrival of McGahn and his two Republican colleagues, Caroline Hunter and Matthew Petersen, according to Ellen Weintraub, the FEC’s most senior Democratic commissioner, who recalls that they kept their deliberations to themselves and voted as a bloc. The first time Weintraub witnessed this, she thought, “What? You have one brain for the three of you?”

McGahn was seen as a domineering force on the commission. “There is no nice way to say it: At some point, McGahn will be an asshole,” conservative lawyer Steve Hoersting warned newly confirmed Commissioner Petersen in a 2008 email. “He’ll insist he knows the better course on an issue and will insist you go along. Don likes to employ the ‘trust me’ method of persuasion.”

Weintraub says it was nearly impossible to pry any information out of McGahn, who refused to return her messages or reply to her emails. He rarely seemed to be in his office. Once, Weintraub bumped into his executive assistant in the women’s restroom. “She looked at me, and without even a hello she blurted out, ‘He’s not in, I don’t know when he’s going to be in, I don’t know when I’m going to be talking to him.'”

To his critics, McGahn was on a one-man crusade to destroy the FEC from within. An analysis by the good-government organization Public Citizen found that the number of deadlocked enforcement votes spiked after his arrival, from an average of 1 or 2 percent in the early and mid-2000s to 15 percent in 2011. McGahn had no qualms about undermining the FEC’s nonpartisan lawyers—in one case, he posted a memo to the agency’s website contradicting the commission’s attorneys in an ongoing lawsuit. He bragged about disregarding parts of the law he disputed or saw as out of sync with court rulings. “I’m not enforcing the law as Congress passed it,” he told a group of law students in 2011, referring to the McCain-Feingold Act of 2002, which was partially invalidated by the 2010 Citizens United ruling. “I plead guilty as charged.”

Former FEC employees say McGahn’s hostility to the agency sometimes extended to its staff. Lawyers from the Office of the General Counsel—which issues recommendations to the commission and defends the FEC in lawsuits filed by outside parties—got the worst of it. When junior lawyers appeared before the commissioners in closed sessions, McGahn could be brutal, former FEC employees say. “I remember passing my boss notes saying, ‘Make him stop,'” one former executive assistant told me. “He would pick on not the supervising attorney, but the line attorney—like a cat would play with a mouse, swatting him.” McGahn, former colleagues recall, saw the career employees as liberal do-gooders, and he made it his mission to rein them in. “He would berate the staff,” says a former FEC lawyer. “He said they came to certain conclusions because they favored the Democrats.”

Don McGahn and Donald Trump’s son-in-law, Jared Kushner, conversing in the Oval Office. Stephen Crowley/New York Times/Redux

The FEC’s lawyers enjoyed an open line of communication with the Justice Department. The two agencies often worked different sides of the same cases—the DOJ handled the criminal side while the FEC handled the civil. Near the end of his tenure, McGahn pushed for changes to the agency’s enforcement manual so the Office of General Counsel couldn’t share information with other federal agencies without the commission’s approval. McGahn also sought to require FEC lawyers to get four votes on the commission before accessing publicly available information—such as news clips and old lawsuits—in enforcement matters. Allies of McGahn say these moves were intended to bring order to an out-of-control bureaucracy. (Both efforts were unsuccessful, though his proposals have since become de facto policy at the commission.) FEC lawyers saw McGahn’s efforts as an attempt to handcuff them. The FEC’s general counsel at the time, Anthony Herman, quit in frustration.

McGahn left the commission in September 2013 and returned to private practice. If his goal was to paralyze the nation’s election watchdog, he largely succeeded. Deadlocked votes continue. Enforcement actions and assessed fines have dropped. (The Republican commissioners tout these statistics as evidence that more candidates and committees are following the law, while Democrats say they’re proof of the agency’s failure to act.) The commission has gone more than three years without naming a new general counsel, and Congress hasn’t confirmed any new members since 2013, with one current member’s term having expired as many as 10 years ago. A 2016 survey of federal employees found that morale at the FEC was at its lowest ever. Ann Ravel, a Democratic commissioner, recently resigned two months early, weary of the FEC’s dysfunction.

McGahn is not solely at fault for the FEC’s sorry state—but those who worked alongside him or observed his time there say he deserves much of the blame. “He ushered in a strategic approach to gridlocking that agency,” says David Donnelly, president of the election reform group Every Voice, “because if an agency can’t do its job, it can’t enforce the law.”

In late 2014, McGahn met Donald Trump for the first time. He was now a partner at Jones Day and had taken on high-profile conservative clients, including the political action committee of the billionaire Koch brothers and Citizens United, the nonprofit group behind the monumental Supreme Court ruling of the same name. David Bossie, the head of Citizens United, had hired McGahn to spearhead a lawsuit against New York Attorney General Eric Schneiderman to block disclosure of its donors. (The suit ultimately lost.) As Trump mulled a presidential run, Bossie recommended McGahn as a campaign lawyer.

According to a person familiar with the meeting, McGahn reminded Trump that they had a personal connection. In the early 1980s, when the real estate mogul wanted to muscle his way into the fledgling casino industry in Atlantic City, New Jersey, he hired McGahn’s uncle Patrick, a local lawyer and political power broker. A three-time Purple Heart recipient nicknamed Piano Wire Paddy for his weapon of choice in the Korean War, Paddy McGahn and his brother Joe, a Democratic state senator, had been instrumental in bringing casino gambling to Atlantic City. Paddy, who died in 2000, paved the way for Trump’s Atlantic City expansion. When a Trump executive complained at the time about his high legal fees, Trump reportedly said, “Jack, I’m 13 and 0 with this guy.”

By the time Trump opened his first casino in 1984, however, the McGahns had undergone a conversion. Tired of operating under Paddy’s thumb, the state assemblyman for Atlantic City, Steven Perskie, had challenged Joe McGahn for his state Senate seat in 1977. The Democratic machine threw its weight behind Perskie (McGahn ran as an independent), and Perskie won the election—a betrayal in the eyes of the McGahn family. Thereafter, the McGahns were Republicans.

What the FEC?

Don McGahn, who grew up in Atlantic City, was one of Trump’s earliest campaign hires. The lawyer, though, didn’t bet entirely on Trump. In March 2015, he also took on another client: former Texas Gov. Rick Perry’s leadership PAC, seen as a vehicle for a Perry presidential run. It is not uncommon for rival candidates to be represented by lawyers at the same law firm, but rarely does the same attorney work for more than one contender, according to election lawyers I spoke to.

McGahn was in attendance for Trump’s official campaign announcement in the rose-marble lobby of Trump Tower in June 2015. It was a landmark moment in a lucrative partnership. According to an election lawyer I talked to, a presidential campaign typically pays a flat fee in the range of $25,000 to $35,000 a month for legal representation. Jones Day, according to a former Trump staffer, instead billed the campaign on an hourly basis, racking up monthly bills of as much as several hundred thousand dollars. “For the guy who wrote The Art of the Deal, Trump got totally screwed on the deal with Jones Day,” the election lawyer told me.

McGahn came to play an integral role as the race wore on. In November 2015, he beat back an attempt by the former chair of New Hampshire’s Republican Party to keep Trump off the ballot in the state. As Trump delivered his victory speech in Manchester, a beaming McGahn stood onstage with the Trump family. And it was McGahn who introduced Trump to Leonard Leo, the Federalist Society executive who oversaw the Trump campaign’s assembly of two lists of potential Supreme Court nominees as a way to win over skeptical Republicans. Polls show that Trump’s picks played a key role in convincing social conservatives to hold their noses and vote for him.

For a campaign with no shortage of drama, McGahn proved remarkably adept at ducking attention. In a rare on-camera interview with a right-wing TV network called the One America News Network on the floor of the Republican National Convention in Cleveland, he predicted that Trump would defeat Hillary Clinton and claim the presidency in November. Asked what Trump would say in his RNC acceptance speech, McGahn grinned. “I wouldn’t dare begin to guess.”

One day this winter, C. Boyden Gray passed the scrum of photographers camped out in the lobby of Trump Tower and rode the elevator up. McGahn, now the White House counsel-to-be, had sought his advice on how to represent the most unorthodox president in perhaps all of American history. Their conversation focused on the massive ethics conundrums facing President-elect Trump, Gray told me. He’d tackled ethics questions himself while working as White House counsel for George H.W. Bush, who made a fortune in the oil industry, but “I didn’t have anywhere near the complexities that Don McGahn had,” he says.

Those who know McGahn see his influence at play in the White House’s laissez-faire approach to ethics and its insistence that conflict-of-interest rules don’t apply to Trump. Trump has refused to divest from his business holdings, raising the possibility of self-enrichment by virtue of the office and violations of the Constitution’s Emoluments Clause, which prohibits a president from accepting payments from foreign governments. Trump told the New York Times in November that a sitting president “can’t have a conflict of interest” and that the law was “totally on my side.” The idea that conflict-of-interest laws don’t apply to the president “is vintage McGahn,” a former colleague told me.

McGahn’s hiring choices to oversee Trump’s sprawling ethics portfolio may be telling. As his top deputy in charge of compliance and ethics, he brought on Stefan Passantino, a lawyer perhaps best known for representing former House Speakers Newt Gingrich and Dennis Hastert in their respective ethics scandals—Gingrich for using tax-deductible money for political purposes and submitting false information to House investigators, and Hastert for failing to properly disclose that he’d paid legal bills with campaign funds in connection with the congressional page scandal. (Years later, Hastert admitted in court to abusing young boys and was sentenced to 15 months in prison for illegally paying hush money to one alleged victim.) Under McGahn, as Politico reported, the White House eschewed the traditional ethics briefing for senior staffers. After the nonpartisan Office of Government Ethics recommended that Trump adviser Kellyanne Conway be reprimanded for promoting Ivanka Trump’s clothing business, Passantino refused, arguing that many federal ethics laws don’t apply to White House employees. OGE Director Walter Shaub Jr. countered that Passantino’s assertion “cites no legal basis” and “is incorrect.”

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Ethics haven’t been the only issue dogging McGahn and the counsel’s office. The chaos surrounding Trump’s January 27 travel ban raised the question of whether McGahn was in over his head. His attempt to clarify the order via a legal memo in federal court was panned by outside legal experts, and his case was not helped when Trump went on a Twitter tirade against the “so-called judge” who had made a “ridiculous” ruling. (If McGahn did urge Trump to curb his attacks on the judiciary, Trump didn’t listen: After the administration’s revised immigration order was blocked in court in March, Trump called the ruling “terrible” and “done by a judge for political reasons.”)

A more experienced counsel, say ex-White House lawyers and other legal experts, would have consulted federal agencies before releasing such an explosive order and stopped the president from launching verbal assaults against members of the judiciary. “One person who must bear responsibility for the awful rollout of the EO is White House Counsel Donald McGahn,” Jack Goldsmith, a former assistant attorney general at the Justice Department under President George W. Bush, wrote on the website Lawfare. If McGahn had tried to restrain Trump and failed, Goldsmith argued, then he was ineffectual; if he had not attempted to corral Trump and correct the flaws in the immigration order, he was incompetent.

Still more questions were raised about McGahn’s judgment and the White House’s vetting process when the Washington Post reported that national security adviser Michael Flynn had discussed sanctions with the Russian ambassador to the United States, and that the Justice Department had briefed McGahn about it during the transition. The next day, White House press secretary Sean Spicer told reporters that McGahn had conducted his own review and “determined that there is not a legal issue.”

Former White House lawyers were stunned. “I wouldn’t have done that,” a former Obama White House counsel told me. “I don’t know what the FBI knows. I don’t know who they’re interviewing.” Goldsmith, the former senior Justice Department lawyer, questioned how rigorous McGahn’s review could have been. The White House counsels he knew, Goldsmith wrote, “were all tough-minded but extremely prudent in dealing with legal jeopardy related to the White House, especially if that jeopardy touched someone as close to the President as his National Security Advisor.” He added, “It is far from clear that the current White House counsel has acted in this fashion.” And McGahn’s judgment was once again called into question when news reports revealed that Flynn had worked as a foreign agent on behalf of Turkish interests at the same time he served as Trump’s national security adviser—a troubling conflict that the incoming White House counsel was briefed on but declined to address.

In late March, two of McGahn’s underlings in the counsel’s office were reported to have helped supply classified intelligence reports to Rep. Devin Nunes (R-Calif.), chair of the House intelligence committee, in an attempt to support President Trump’s unfounded allegation that his predecessor had wiretapped him. The revelation raised questions about whether McGahn had played any part in this effort.

The mark of a great White House counsel, experts say, is providing sound legal advice to the commander in chief whether he wants to hear it or not. But with McGahn, the evidence so far—the lax approach to Trump’s ethics problems, the execution of the immigration order, the Flynn imbroglio—suggests a loyal lieutenant eager to please the president. “Don is an expert. He is not a lawyer who says, ‘You simply are unable to do X,'” a former Trump campaign aide told me. “He’ll look for every single type of way to be able to do X.” Which, in the end, may be the last thing this president needs.

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Clean Up On Aisle Trump

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Tom Price Intervened on Rule That Would Hurt Drug Profits, the Same Day He Acquired Drug Stock

Mother Jones

This story originally appeared on ProPublica.

On the same day the stockbroker for then-Georgia Congressman Tom Price bought him up to $90,000 of stock in six pharmaceutical companies last year, Price arranged to call a top U.S. health official, seeking to scuttle a controversial rule that could have hurt the firms’ profits and driven down their share prices, records obtained by ProPublica show.

Stock trades made by Price while he served in Congress came under scrutiny at his confirmation hearings to become President Trump’s secretary of health and human services. The lawmaker, a physician, traded hundreds of thousands of dollars’ worth of shares in health-related companies while he voted on and sponsored legislation affecting the industry, but Price has said his broker acted on his behalf without his involvement or knowledge. ProPublica previously reported that his trading is said to have been under investigation by federal prosecutors.

On March 17, 2016, Price’s broker purchased shares worth between $1,000 and $15,000 each in Eli Lilly, Amgen, Bristol-Meyers Squibb, McKesson, Pfizer and Biogen. Previous reports have noted that, a month later, Price was among lawmakers from both parties who signed onto a bill that would have blocked a rule proposed by the Obama administration, which was intended to remove the incentive for doctors to prescribe expensive drugs that don’t necessarily improve patient outcomes.

What hasn’t been previously known is Price’s personal appeal to the Centers for Medicare & Medicaid Services about the rule, called the Medicare Part B Drug Payment Model.

The same day as the stock trade, Price’s legislative aide, Carla DiBlasio, emailed health officials to follow up on a request she had made to set up a call with Patrick Conway, the agency’s chief medical officer. In her earlier emails, DiBlasio said the call would focus on payments for joint replacement procedures. But that day, she mentioned a new issue.

“Chairman Price may briefly bring up … his concerns about the new Part B drug demo, as well,” she wrote. “Congressman Price really appreciates the opportunity to have an open conversation with Dr. Conway, so we really appreciate you keeping the lines of communication open.”

The call was scheduled for the following week, according to the emails.

An HHS spokesman didn’t respond to a request for comment from Price. DiBlasio and Conway didn’t respond to questions about the phone call.

The proposed rule drew wide opposition from members of both parties as well as industry lobbyists and some patient advocacy groups. It was meant to change a system under which the government reimburses doctors the average sales price for drugs administered in their offices or inside clinics, along with a 6 percent bonus. Some health analysts say that bonus encourages doctors to pad their profits by selecting more expensive treatments.

Critics argued that the rule might cause Medicare enrollees to lose access to lifesaving drugs. Lawmakers worried the federal government was potentially endangering patients and turning them into guinea pigs in a wide-scale experiment in cost savings.

However, supporters of the rule said the experiment in payments was the kind of drastic action needed to rein in soaring health costs. “We are actively reforming every other aspect of our health-care system to pay for value except pharmaceuticals,” Rep. Jan Schakowsky, D-Ill., said at the time. “Drug manufacturers are the only entity that can charge Medicare anything they want.”

The six companies that Price invested in were steadfastly opposed to the rule. McKesson formally warned investors in a Securities and Exchange Commission filing that such a change could hurt share prices. The firms lobbied the government to kill the plan.

And at two of the six companies Price invested in, people who used to work for the congressman were part of the lobbying effort.

Price’s former chief of staff, Matt McGinley, lobbied House members for Amgen, disclosure records show. Another former Price aide, Keagan Lenihan, lobbied on behalf of McKesson, where she was director of government relations at the time. Lenihan has since reunited with Price, returning to government to work as a senior adviser to her old boss at HHS.

Neither McGinley nor Lenihan responded to requests for comment.

Although Price said he wasn’t aware of his broker’s trades at the time they were made, he would have learned of his holdings no later than April 2016 when he signed and filed his latest financial disclosure forms. In earlier disclosures, Price signed forms listing his other health-related holdings, which included some drug stocks.

Price’s personal intervention raises more questions about the overlap between his investments and his work as a member of Congress.

According to House ethics guidelines, “contacting an executive branch agency” represents “a degree of advocacy above and beyond that involved in voting” on legislation where a financial conflict of interest may exist.

“Such actions may implicate the rules and standards … that prohibit the use of one‘s official position for personal gain,” the guidelines state. “Whenever a Member is considering taking any such action on a matter that may affect his or her personal financial interests, the Member should first contact the Standards Committee for guidance.”

Tom Rust, chief counsel for the House Ethics Committee, declined to comment, saying any consultations with members of Congress are confidential.

In December, after Trump was elected and named Price as his choice to lead HHS, Obama administration health officials scrapped their plan to change the drug reimbursement system. “The complexity of the issues and the limited time available led to the decision not to finalize the rule at this time,” a spokesman said.

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Tom Price Intervened on Rule That Would Hurt Drug Profits, the Same Day He Acquired Drug Stock

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Trump Wants More Control Over Intel Agencies

Mother Jones

Here’s a tidbit from the AP about how President Trump might “seize the reins” of the intelligence community:

Officials have expressed an interest in having more raw intelligence sent to the president for his daily briefings instead of an analysis of information compiled by the agencies, according to current and former U.S. officials. The change would have given his White House advisers more control about the assessments given to him and sidelined some of the conclusions made by intelligence professionals.

Trump seems like the kind of guy who could do his own analysis of raw intelligence. They should give it a try. What could go wrong?

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Trump Wants More Control Over Intel Agencies

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Trump’s latest environmental evildoing: More pollution, less protection

In a single day, President Trump did more environmental damage than during his previous 67 days in office. That’s no small achievement.

With an executive order signed on March 28, he supercharged the process of demolishing President Obama’s climate initiatives, including his signature one, the Clean Power Plan. It’s not just climate hawks, treehuggers, and grandstanding Democratic politicians who are aghast. Mainstream media outlets are, too.

“President Trump’s move to rip up Mr. Obama’s climate policies [is] beyond reckless. Children studying his presidency will ask, ‘How could anyone have done this?’” the Washington Post editorial board wrote. The New York Times ran its own anxious editorial under the headline “President Trump Risks the Planet.”

Trump’s move means the U.S. will pump out a lot more greenhouse gases than it would have if Obama’s policies had been continued.

And it will make climate change still worse by weakening the resolve of other countries to curb their emissions.

Here’s a rundown of what Trump is aiming to do with his executive order as well as other recent moves:

Motley spew
Let power plants emit more pollution

What happened? Old coal-fired power plants may get to keep polluting the air we breathe and the atmosphere that sustains life on earth, thanks to Trump’s call to toss out the Clean Power Plan. And future power plants may not be held to tougher standards that would have largely prevented new coal plants from coming online.

What does it really mean? This is A Big F’ing Deal. These power plant rules were the most significant part of the Obama administration’s effort to meet its emission-cutting pledge under the Paris climate agreement. If the U.S. is wimping out on Paris, other countries will be more inclined to wimp out, too.

But undoing the Clean Power Plan will likely take years and will definitely be challenged in court, so it’s far from a done deal. Plus, cheap natural gas means utilities aren’t likely to build new coal-fired power plants anyway, because gas plants are less expensive to run.

Frack addicts
Make it easier for companies to frack and emit methane

What happened? The Obama administration tried to tighten regulations on fracking on federal and tribal lands to prevent water pollution. It also tried to rein in methane pollution from oil and gas operations on public lands. Trump’s executive order calls for those rules to be reviewed and rewritten.

What does it really mean? The Trump administration is working to remove all obstacles that stand in the way of the oil and gas industry, pure and simple.

Full speed ahead!
Trash other rules that restrain the oil, gas, and coal industries

What happened? Trump’s executive order tells federal agencies to review regulations and actions that potentially “burden” domestic energy development, and gives them 180 days to come up with plans to scale the regulations back.

What does it really mean? We don’t know how many rules will get dragged into this process and ultimately be weakened or tossed out, but the message is clear: Drill, baby, drill. Mine, baby, mine.

The coal ball and chain
Sell off coal from public lands again

What happened? The federal program that leases land to coal companies for mining is a big money loser as well as a climate killer. In January 2016, the Obama administration put a moratorium on the program so it could consider how to improve it, potentially by charging more for coal leases and taking into account the climate impacts of mining. With his executive order, Trump called for the moratorium to be reversed, and Interior Secretary Ryan Zinke promptly did just that. Zinke also cancelled the big review of the program, so major reforms won’t be coming anytime soon.

What does it really mean? This won’t lead to much new coal mining immediately, as there’s currently a glut of coal on the market and companies already have plenty of reserves. But it means that the coal-leasing program will continue to waste taxpayer money, subsidize coal companies, and worsen climate change.

Global what?
Stop thinking about climate change

What happened? Under Obama, federal agencies were required to consider the full economic cost of climate change when making decisions about projects. The administration determined that a metric ton of CO2 pollution currently costs society about $36 — that’s called the social cost of carbon — and this number has been factored into cost-benefit analyses for regulations and other government actions, often supporting regulations that require emissions cuts.

The Obama administration also asked federal agencies to account for climate change when writing environmental impact statements for federal projects.

With his executive order, Trump is calling for a new review of the social cost of carbon, and he’s tossing out the requirement to consider climate in impact statements.

What does it really mean? Expect the social cost of carbon to drop, even though experts say it’s already way too low. Essentially, these are yet more ways for the administration to say it doesn’t give a damn about climate change.


Phew, that was quite the executive order. But wait, there’s more: Trump found time to pull some other scary moves between trips to Mar-a-Lago.

Having their spray
Allow use of a dangerous pesticide

What happened? Under Obama, the EPA proposed banning agricultural use of the toxic pesticide chlorpyrifos, but didn’t finalize the rule. Under Trump, the EPA did an about-face: On March 29, the agency officially declined to impose a ban.

What does it really mean? Scientific studies have linked even low doses of chlorpyrifos to developmental problems in kids. So children will continue to be exposed — especially the children of farm workers — while Dow AgroSciences, manufacturer of the pesticide, will continue to make lots of money selling it.

Dude, where’s my cleaner car?
Roll back auto fuel economy rules

What happened? Just before Obama moved out of the White House, his administration finalized a review of its ambitious gas-mileage standards for future cars and trucks. On March 15, the Trump administration sent those standards back to the drawing board, calling for more review after automakers complained that they were too strict.

What does it really mean? Cars will likely guzzle more gas than they need to, and the shift to electric cars may slow down.

Romancing the Keystone
Clear the way for the Keystone XL pipeline

What happened? Just as promised during his first week in office, Trump revived the Keystone XL pipeline, which would carry some of the filthiest oil on the planet down from the tar sands of Alberta, across the American farm belt, and toward refineries on the Gulf Coast. Obama denied the pipeline builder a permit to cross the U.S.-Canada border. On March 27, Trump reversed course and granted the permit.

What does it really mean? Within days of Trump’s move, environmentalists filed two lawsuits attempting to stop the pipeline’s construction. Pipeline builder TransCanada still needs approval from Nebraska and may face financial hurdles. Even so, chances are better than ever that the world’s most controversial pipeline will get built.

Meanwhile, that other highly controversial pipeline, Dakota Access, is now finished and being filled up with oil, thanks to the OK it got from the Trump administration on Feb. 6.


Let’s end on two slivers of good news:

Trump did not pull the U.S. out of the Paris Agreement, as some right-wingers have been calling for. The White House says a decision on that will be made by May 26, and maybe Ivanka Trump and Secretary of State Rex Tillerson can convince the president to stay in.

Trump did not ask the EPA to reverse its finding that greenhouse gas emissions endanger human health, which is the basis for the agency’s climate actions. The conservative Competitive Enterprise Institute has petitioned the agency to review that finding, hoping to overturn it. We don’t know how that will turn out, but in the meantime, the situation is making EPA Administrator Scott Pruitt very uncomfortable.

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Trump’s latest environmental evildoing: More pollution, less protection

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The House Freedom Caucus Finally Comes Clean

Mother Jones

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Sarah Kliff reports on the latest from House conservatives:

The House Freedom Caucus laid out two demands on Thursday for a health care bill its members would support: ending Obamacare’s essential health benefits and its “community rating” provisions.

Good for them! I’m serious. The key starting point for any kind of comprehensive health care plan is a ban on turning down customers with pre-existing conditions. But once you do that, you have to control the price insurers can charge (aka “community rating”), or else they’ll simply jack up premiums for people with expensive conditions to a million dollars per year, which accomplishes the same thing as turning them down. But if insurers are required to cover anyone who applies, they also need plenty of healthy people to balance out their risk pool. So you end up with an individual mandate. But if you have a mandate, you have to have subsidies for poor people. You can hardly expect to legally require insurance for people who don’t have the money to buy it, after all.

At that point, you have the entire edifice of Obamacare. There’s no way around it. That’s why Paul Ryan’s plan looked an awful lot like Obamacare lite.

So if you’re a conservative who flatly doesn’t want an expensive, comprehensive, government-funded health care program, there’s only one way to get there: ditch the pre-existing conditions ban by calling for an end to community rating. This is hugely unpopular, so it takes some guts to tell the truth and propose getting rid of it.

It’s also cruel and meanspirited, but that goes with the ultraconservative territory. But at least they’re being honest. Compare this to Paul Ryan, who kept the pre-existing conditions ban (via his “continuous coverage” provision), which then forced him to accept all the bells and whistles of Obamacare. His solution was to wave his hands and then keep the funding so low that his program essentially did no good at all. He didn’t have the stones to simply admit that what he really wanted to do was repeal Obamacare and then do nothing at all to replace it.

Now, it so happens that Obamacare’s pre-existing conditions ban has no direct effect on the federal budget, and therefore can’t be repealed via reconciliation. It can only be repealed under regular order, which requires 60 votes in the Senate. So the Freedom Caucus folks are out of luck. But at least they’re displaying a bit of honesty.

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The House Freedom Caucus Finally Comes Clean

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Why Were Three White House Officials Trawling Through Highly Classified Documents?

Mother Jones

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Now there are three people involved in revealing classified information to Rep. Devin Nunes:

One of those involved in procuring the documents cited by Nunes has close ties to former national security adviser Michael Flynn. The official, Ezra Cohen, survived a recent attempt to oust him from his White House job by appealing to Trump advisers Jared Kushner and Stephen K. Bannon, the officials said….After assembling reports that showed that Trump campaign officials were mentioned or inadvertently monitored by U.S. spy agencies targeting foreign individuals, Cohen took the matter to the top lawyer for the National Security Council, John Eisenberg.

The third White House official involved was identified as Michael Ellis, a lawyer who previously worked with Nunes on the House Intelligence Committee but joined the Trump administration as an attorney who reports to Eisenberg.

This is an amazingly far-reaching conspiracy considering that the documents don’t actually seem to have contained anything very interesting. You’d think that at some point one of these guys would have the common sense to call off this Keystone Cops affair.

And as long as we’ve mentioned Michael Flynn, here’s the latest on him:

Michael T. Flynn, the former national security adviser, has offered to be interviewed by House and Senate investigators who are examining the Trump campaign’s ties to Russia in exchange for immunity from prosecution, according to his lawyer and a congressional official.

I didn’t bother mentioning this yesterday because, frankly, I sort of figured that Flynn was hoping for immunity and then wouldn’t say anything very interesting. Last night Josh Marshall opined that “you only get immunity if you deliver someone else higher up the ladder,” but this morning he seems to have changed his mind:

Flynn’s lawyer states rather grandly that his client “has a story to tell and … very much wants to tell it.” But Alex Whiting of Harvard Law School argues pretty convincingly that what we learned last night likely means either that Flynn doesn’t have a story prosecutors are willing to barter for or isn’t yet willing to tell it.

So probably Flynn doesn’t have much to say after all. Which gets us back to the clowns in the White House. What were they doing trawling through highly classified reports anyway? Barton Gellman says this is the key unanswered question so far, and it’s related to the allegation that some of the names in the reports had been unmasked, something that happens only if a “customer” asks for it:

If Nunes saw reports that named Trump or his associates, as he said, the initiative for naming names did not come from the originating intelligence agency. That is not how the process works. The names could only have been unmasked if the customers—who seem in this case to have been Trump’s White House appointees—made that request themselves. If anyone breached the president’s privacy, the perpetrators were working down the hall from him. (Okay, probably in the Eisenhower Executive Office Building next door.) It is of course hypocritical, even deceptive, for Nunes to lay that blame at the feet of intelligence officials, but that is not the central concern either.

If events took place as just described, then what exactly were Trump’s appointees doing? I am not talking only about the political chore of ginning up (ostensible) support for the president’s baseless claims about illegal surveillance by President Obama. I mean this: why would a White House lawyer and the top White House intelligence adviser be requesting copies of these surveillance reports in the first place? Why would they go on to ask that the names be unmasked? There is no chance that the FBI would brief them about the substance or progress of its investigation into the Trump campaign’s connections to the Russian government. Were the president’s men using the surveillance assets of the U.S. government to track the FBI investigation from the outside?

That reference at the end to “the president’s men” is no coincidence. This whole thing looks more Watergate-ish by the day. Maybe it’s time to start calling it Russiagate.

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Why Were Three White House Officials Trawling Through Highly Classified Documents?

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