After Pledging to Donate Salary, Trump Declines to Release Proof

President Donald Trump pledged to forgo a presidential salary, but as his second payday approaches, the White House is declining to say if the president has donated any of his earnings yet.

During the campaign, Trump promised he would take “no salary” if elected — a pledge he reiterated after he won.

“I’m not going to the take the salary,” he said on CBS’ “60 Minutes” in November.

The Constitution, however, requires that the president receive a salary, and that it not be reduced during his term. Federal law mandates the president receive a $400,000 annual salary, paid out once a month.

Trump aides have previously said Trump would donate his salary to the Treasury Department or a charity.

MSNBC requested details and documentation about any salary donations from the White House, the Treasury Department and the Office of Personnel Management, which all declined to say whether Trump has donated any of his salary to date. (OPM referred questions to the White House.)

Last month, White House spokesperson Sarah Huckabee Sanders told the website Politifact that Trump “will be giving” his salary “back to Treasury or donating.” The site noted the White House “declined to answer several inquiries into whether Trump has gotten a paycheck already.”

Under the law, Trump would receive his first monthly paycheck for $33,333 in February, and another $33,333 on March 20.

Salary donations are not the only area where Trump’s pledges to donate revenue are lacking transparency.

During the transition, Trump also unveiled a plan to “donate all profits from foreign governments’ patronage of his hotels and similar businesses” to the Treasury Department. The plan was released by Trump’s private law firm, Morgan Lewis, but no system or accounting has been released for how or when such donations will be processed or disclosed.

(h/t NBC News)

Media

Pence Used Personal Email for State Business — and Was Hacked

Vice President Mike Pence routinely used a private email account to conduct public business as governor of Indiana, at times discussing sensitive matters and homeland security issues.

Emails released to IndyStar in response to a public records request show Pence communicated via his personal AOL account with top advisers on topics ranging from security gates at the governor’s residence to the state’s response to terror attacks across the globe. In one email, Pence’s top state homeland security adviser relayed an update from the FBI regarding the arrests of several men on federal terror-related charges.

Cyber-security experts say the emails raise concerns about whether such sensitive information was adequately protected from hackers, given that personal accounts like Pence’s are typically less secure than government email accounts. In fact, Pence’s personal account was hacked last summer.

Furthermore, advocates for open government expressed concerns about transparency because personal emails aren’t immediately captured on state servers that are searched in response to public records requests.

Pence’s office in Washington said in a written statement Thursday: “Similar to previous governors, during his time as Governor of Indiana, Mike Pence maintained a state email account and a personal email account. As Governor, Mr. Pence fully complied with Indiana law regarding email use and retention. Government emails involving his state and personal accounts are being archived by the state consistent with Indiana law, and are being managed according to Indiana’s Access to Public Records Act.”

Indiana Gov. Eric Holcomb’s office released 29 pages of emails from Pence’s AOL account, but declined to release an unspecified number of others because the state considers them confidential and too sensitive to release to the public.

That’s of particular concern to Justin Cappos, a computer security professor at New York University’s Tandon School of Engineering. “It’s one thing to have an AOL account and use it to send birthday cards to grandkids,” he said. “But it’s another thing to use it to send and receive messages that are sensitive and could negatively impact people if that information is public.”

Indiana law does not prohibit public officials from using personal email accounts, although the law is generally interpreted to mean that official business conducted on private email must be retained for public record purposes.

Pence’s office said his campaign hired outside counsel as he was departing as governor to review his AOL emails and transfer any involving public business to the state.

Concerns also surrounded Hillary Clinton’s use of a private server and email account during her tenure as secretary of state. Pence as governor would not have dealt with national security issues as sensitive or as broad as those handled by Clinton in her position or with classified matters.

Pence fiercely criticized Clinton throughout the 2016 presidential campaign, accusing her of trying to keep her emails out of public reach and exposing classified information to potential hackers.

Pence spokesman Marc Lotter called any comparisons between Pence and Clinton “absurd,” noting that Pence didn’t deal with federally classified information as governor. While Pence used a well-known consumer email provider, Clinton had a private server installed in her home, he said.

Cybersecurity experts say Pence’s emails were likely just as insecure as Clinton’s. While there has been speculation about whether Clinton’s emails were hacked, Pence’s account was actually compromised last summer by a scammer who sent an email to his contacts claiming Pence and his wife were stranded in the Philippines and in urgent need of money.

Corey Nachreiner, chief technology officer at computer security company WatchGuard Technologies, said the email accounts of Pence and Clinton were probably about equally vulnerable to attacks.

“In this case, you know the email address has been hacked,” he said. “It would be hypocritical to consider this issue any different than a private email server.”

He and other experts say personal accounts such as the one Pence used are typically less secure than government email accounts, which often receive additional layers of monitoring and security, and are linked to servers under government control.

Indiana law requires all records dealing with state business to be retained and available for public information requests. Emails exchanged on state accounts are captured on state servers, which can be searched in response to such requests. But any emails Pence sent from his AOL account to another private account likely would have been hidden from public record searches unless he took steps to make them available.

Indiana Public Access Counselor Luke Britt, who was appointed by Pence in 2013, said he advises state officials to copy or forward their emails involving state business to their government accounts to ensure the record is preserved on state servers.

But there is no indication that Pence took any such steps to preserve his AOL emails until he was leaving the governor’s office.

When public officials fail to retain their private-account emails pertaining to public business, “they’re running the risk of violating the law,” Britt said. “A good steward of those messages and best practice is going to dictate they preserve those.”

All of the emails provided to IndyStar, part of the USA TODAY Network, were ones captured on state servers.

The emails were obtained after a series of public records requests that the Pence administration did not fulfill for nearly four months before Pence left office.

The administration of Pence’s successor, Gov. Eric Holcomb, released 29 pages of emails late this past week. But it withheld others, saying they are deliberative or advisory, confidential under rules adopted by the Indiana Supreme Court or the work product of an attorney.

Holcomb’s office declined to disclose how many emails were withheld.

Cyber-security experts and government transparency advocates said Pence’s use of a personal email account for matters of state business — including confidential ones — is surprising given his attacks on Clinton’s exclusive use of a private email server.

On NBC’s “Meet the Press” in September, for example, Pence called Clinton “the most dishonest candidate for president of the United States since Richard Nixon.”

“What’s evident from all of the revelations over the last several weeks is that Hillary Clinton operated in such a way to keep her emails, and particularly her interactions while Secretary of State with the Clinton Foundation, out of the public reach, out of public accountability,” Pence said. “And with regard to classified information she either knew or should have known that she was placing classified information in a way that exposed it to being hacked and being made available in the public domain even to enemies of this country.”

The experts told IndyStar that similar arguments about a lack of transparency could be made about Pence’s use of a personal email account.

“There is an issue of double standard here,” said Gerry Lanosga, a professor at Indiana University and past president of the Indiana Coalition for Open Government. “He has been far from forthcoming about his own private email account on which it’s clear he has conducted state business. So there is a disconnect there that cannot be avoided.”

Security concerns

As governor, Pence oversaw Indiana’s state police, national guard and department of homeland security, all of which collaborate with federal authorities and handle sensitive information.

The emails provided to IndyStar show that Pence corresponded with his then-chief of staff, Jim Atterholt, and his top public safety and homeland security adviser John Hill, on subjects including Pence’s efforts to prevent the resettlement of Syrian refugees and the state’s response to a shooting at Canada’s national parliament building.

“I just received an update from the FBI regarding the individuals arrested for support of ISIS,” Hill wrote to Pence in a Jan. 8, 2016 email with the subject, “Arrests of Refugees.”

At that time, the Pence administration was embroiled in a lawsuit over the governor’s effort to block the resettlement of Syrian refugees in Indiana.

Hill went on to explain how many people were arrested, on what charges and in which cities before adding in underlined type: “Both of the earlier referenced refugees are reported now as ‘Iraqi’ — not Syrian.”

Much if not all of that information appears to have been reported in the media at the time. But questions remain about the more sensitive information contained in Pence’s AOL account that the Holcomb administration declined to release.

Experts say there have been high-profile security lapses involving AOL email accounts in the past. The company reported a major breach of its email in 2014 affecting hundreds of thousands of users. The following year, messages hackers obtained from then-CIA Director John Brennan’s personal AOL account were posted on WikiLeaks.

Pence’s own account was compromised in June when a hacker sent a counterfeit email to his contacts claiming Pence he and his wife had been attacked on their way back to their hotel in the Philippines, losing their money, bank cards and mobile phone.

In response, Pence sent an email to those who had received the fake communication apologizing for any inconvenience. He also set up a new AOL account.

Because the hacker appears to have gained access to Pence’s contacts, experts say it is likely that the account was actually penetrated, giving the hacker access to Pence’s inbox and sent messages.

The nature of that hack suggests it was part of a broad, impersonal attack — not one carefully crafted to target Pence in particular, Cappos said.

“It’s particularly concerning that someone who didn’t do a very particular, very specific attack was able to hack this account,” he said.

That’s especially true given that at least some of the emails Pence sent or received have been deemed confidential or exempt from public disclosure.

“The fact that these emails are stored in a private AOL account is crazy to me,” Cappos said. “This account was used to handle these messages that are so sensitive they can’t be turned over in a records request.”

As governor, Pence was less likely than the U.S. secretary of state to encounter national security secrets, said Adam Segal, director of the digital and cyberspace policy program at the Council on Foreign Relations.

But much of the rationale behind the criticism of Clinton’s emails would apply to Pence, too, he said.

“A large part of the criticism of (Hillary Clinton’s) personal server by the GOP — that it was unsafe or that it was to circumvent oversight — would be misplaced if Pence was using an AOL account,” he said. “The Secretary of State would be in possession of secrets that had more of a national impact, but at a lower level, a private email account has the same implications.”

Transparency issues

In addition to security issues, Pence’s personal email account also raises new concerns about transparency, according to ethics experts and government accountability advocates.

Pence is already fighting in state court to conceal the contents of emails involving his decision to join a 2014 lawsuit challenging then-President Barack Obama’s executive order on immigration. The emails are being sought by William Groth, a Democrat and labor lawyer who says he wants to expose waste in the Republican administration.

Richard Painter, former chief ethics lawyer to President George W. Bush, said it’s bothersome that Pence is only now transferring his AOL emails to the state. It raises questions about whether those emails were included in previous responses to public records requests. “That’s a problem that should have been dealt with back then,” he said. “The existence of the private email account should have been dealt with at the time the record requests were made.”

The use of personal email accounts by public officials — including governors — is nothing new. But the increased risk that hackers, including foreign actors, could break into the account of someone as high-ranking as the vice president of the United States is disconcerting, Painter said.

“Clinton did it. The Bush White House was doing it. It’s nothing new. But it’s a bad idea,” he said, noting that Pence’s account was vulnerable to a low-level hacker.  “If they can get in there, ex-KGB agents can get in there. It’s a bad idea because of the hacking thing and the potential destruction of records.”

Lanosga of the Indiana Coalition for Open Government said it’s a problem that seems to cross party lines.

“Officials are eager to point the finger at a lack of transparency when it happens on the other side,” he said, “but they dodge those issues when it comes to their own side.”

(h/t IndyStar)

 

 

Trump Is Going on Vacation for the Third Weekend in a Row

President Donald Trump will reportedly return to his vacation home at his Mar-a-Lago Club for the third weekend in a row, the Palm Beach Post reports. This also means that Trump has spent most of his weekends as president so far at his vacation home — the two exceptions being his inauguration weekend in Washington, D.C., and the weekend of January 28.

What’s wrong with Trump taking so much time away from the White House? For one thing, traveling as the president doesn’t come cheap. While presidents do pay for their own lodging, Politico reports that weekend trips similar to the ones Trump has taken cost taxpayers more than $3 million due to the Secret Service detail and Air Force One expenses. That also doesn’t take into account the logistical challenges that come with presidential travel, including special advisories from the Federal Aviation Administration and other transportation departments.

In Trump’s case, it can also be risky to spend so much time in public when classified national security concerns come up and an action plan isn’t in place for dealing with them privately, The New York Times reports. This past weekend, Trump and Japanese prime minister Shinzo Abe received word of a North Korean ballistic missile test while they were dining publicly at Trump’s club, according to CNN. Photos surfaced on Facebook, taken by a private citizen and Mar-a-Lago member, of the president and his team reading documents in a public part of club and using their cell phones to look at the material, a possible breach of security protocol. (Hackers can tap into phone cameras and see what’s on those pages, The Verge points out.)

On Monday, White House press secretary Sean Spicer told reporters that “no classified material” was discussed in public view, according to The Washington Post. Democrats were quick to point out the disregard for proper protocol when discussing sensitive matters in public view. Representative Nancy Pelosi of California wrote in a tweet, “There’s no excuse for letting an international crisis play out in front of a bunch of country club members like dinner theater.”

Additionally, Rhode Island senator Sheldon Whitehouse and New Mexico senator Tom Udall publicly condemned Trump’s actions in a statement, according to The New York Times. The two senators said, “This is America’s foreign policy, not this week’s episode of Saturday Night Live. We urge our Republican colleagues to start taking this Administration’s rash and unprofessional conduct seriously before there are consequences we all regret.”

Ironically, early in his campaign, Trump specifically claimed that he wouldn’t vacation often if he were president. “I would rarely leave the White House because there’s so much work to be done,” Trump said in 2015. “I would not be a president who took vacations. I would not be a president that takes time off. You don’t have time to take time off.”

He also attacked Barack Obama on Twitter multiple times during his presidency for taking vacations. “Obama’s motto: If I don’t go on tax payer funded vacations & constantly fundraise then the terrorists win,” Trump tweeted in August 2014.

“While our wonderful president was out playing golf all day, the TSA is falling apart, just like our government! Airports a total disaster!” he posted in May 2016.

So far, the White House hasn’t commented on Trump’s multiple weekend trips to Mar-a-Lago.

(h/t Teen Vogue)

Trump Says He Cut Wall Street Reform Because His “Friends” Need Money

On Friday, Donald Trump signed an executive order intended to roll back Dodd-Frank, the sprawling regulatory framework President Obama signed into law in 2010 to avoid another financial crisis, which was not entirely beloved on Wall Street. He also scrapped a fiduciary rule intended to protect retirees by forcing brokers and advisers to “work in the best interest of their clients.“ (This, too, was controversial.)

According to its defenders, Dodd-Frank has been a modestly successful, if tortuous affair, requiring banks to bend over backwards to comply with regulations that protect investors and consumers from abusive practices and excessive risk. According to Trump, it was inconveniencing his friends:

“There is nobody better to tell me about Dodd-Frank than [JP Morgan C.E.O.] Jamie [Dimon]. So he has to tell me about it, but we expect to be cutting a lot from Dodd-Frank because, frankly, I have so many people, friends of mine, that have nice businesses, they can’t borrow money,” Trump said Friday morning, shortly before signing the executive orders. “They just can’t get any money because the banks just won’t let them borrow because of the rules and regulations in Dodd-Frank.”

And here’s how Gary Cohn, Goldman Sachs president turned White House National Economic Council Director made the case for getting rid of the fiduciary rule unveiled last spring:

“We think it is a bad rule. It is a bad rule for consumers. This is like putting only healthy food on the menu, because unhealthy food tastes good but you still shouldn’t eat it because you might die younger.”

That is literally the greatest analogy we’ve ever heard, and we challenge Cohn and the Trump administration to top it. (In fact, the only way they could is if Cohn appeared on Meet the Press on Sunday and said, “The fiduciary rule is like only putting out vape pens at a party, because crystal meth feels good but you still shouldn’t smoke it because you might die younger.” Let the consumer have their meth! How could more choice be bad, in an industry defined by vast asymmetries of information between brokers and consumers?

Oh, and in case you were wondering: Elizabeth Warren is obviously pissed about all of this.

“Donald Trump talked a big game about Wall Street during his campaign—but as president, we’re finding out whose side he’s really on,” the Massachusetts senator said in a statement. “Today, after literally standing alongside big bank and hedge fund C.E.O.s, he announced two orders—one that will make it easier for investment advisers to cheat you out of your retirement savings, and another that will put two former Goldman Sachs executives in charge of gutting the rules that protect you from financial fraud and another economic meltdown.”

Warren, along with Senator Tammy Baldwin, also sent a letter to Gary Cohn telling him he ought to “recuse himself from decisions directly or indirectly related to Goldman Sachs.”

(h/t Vanity Fair)

 

 

 

Trump Backer, Man He Sucker-Punched at Trump Rally Meet in Court

Assailant John Franklin McGraw

A man accused of hitting a protester at a Donald Trump rally in North Carolina has received a 30-day suspended sentence and 12 months of unsupervised probation.

CBS Raleigh, North Carolina affiliate WNCN-TV reports 79-year-old John Franklin McGraw, of Linden, pleaded no contest on Wednesday to misdemeanor charges of assault and battery and disorderly conduct. A judge also ordered McGraw to pay $180 in court costs and a $250 fine.

McGraw was accused of hitting Rakeem Jones as Cumberland County sheriff’s deputies were removing Jones from the Trump rally in Fayetteville on March 9. The assault was captured on video.

McGraw apologized for his actions, and Judge Tal Baggett told him to talk to Jones. The two men spoke, shook hands and hugged, and people in the courtroom applauded.

McGraw said he and Jones were both caught up in a “political mess.”

Jones accepted his apology and the two then hugged and agreed to work together to heal the country.

“It just felt good being able to shake his hand … and face him,” Jones said.

The judge said he was pleased that both men found a way to peacefully resolve the issue.

WNCN notes that video of the punch was tweeted by New York Daily News writer Shaun King.

In a video later posted by “Inside Edition” shortly after the incident, McGraw defended his actions, WNCN says.

“He deserved it,” McGraw said of Jones.

“The next time we see him, we might have to kill him. We don’t know who he is. He might be with a terrorist organization.”

McGraw showed little remorse for the attack.

“You bet I liked it. Knocking the hell out of that big mouth,” McGraw continued. “No. 1, we don’t know if he’s ISIS. We don’t know who he is, but we know he’s not acting like an American.”

Reality

Donald J. Trump has broken another campaign promise, this time he backed out of paying the legal fees and to personally defend it court those supporters who commit violence against the people who protest at his rallies.

John Franklin McGraw, who sucker-punched a defenseless man at a Trump rally just days after Trump himself promised to defend his supporters in court for hurting protesters, pleaded no contest to misdemeanor charges of assault and battery and disorderly conduct without the defense or aide of the president-elect

Trump Gives Petraeus a Pass

Donald Trump said Hillary Clinton’s use of a private server for classified State Department emails made her unfit for high office. But that isn’t stopping him from considering David Petraeus, who pleaded guilty to knowingly leaking secret government files — and lying to the feds about it — for secretary of state.

Trump’s hourlong meeting Monday with Petraeus, a retired general and former CIA director, to discuss the Cabinet position is the latest in the president-elect’s outreach to retired military leaders who have clashed with President Barack Obama on foreign policy and national security.

But it also calls into question the sincerity of Trump’s stance on the importance of safeguarding the nation’s secrets, according to former government officials and intelligence experts — a stance that was driven home with campaign trail chants of “Lock her up.”

“The very consideration of Petraeus for a senior position reveals that the Trump campaign’s rhetoric regarding Hillary Clinton was totally bogus,” said Steven Aftergood, a specialist on government classification at the Federation of American Scientists. “Candidate Trump was generating hysteria over Clinton’s handling or mishandling of classified information that he likely never believed or took seriously himself.

“Petraeus admitted lying to the FBI, which distinguished his case from Clinton’s and made his case a good deal worse,” Aftergood added. “I think once again President-elect Trump is revealed as a rather hypocritical figure.”

Petraeus’ stint as head of the CIA came to ignominious end in 2012 when it was discovered he was having an extramarital affair with Paula Broadwell, his biographer, and had shared reams of classified information with her. He pleaded guilty to misdemeanor charges and was sentenced to two years of probation and forced to pay a $40,000 fine. Investigators also claimed that Petraeus separately shared classified information with journalists.

It is likely to be a major point of contention if he is nominated and faces confirmation by the Senate, where he has significant supporters but there is already some angst about having to grapple with his law-breaking.

A former senior intelligence official who was once Petraeus’ boss said he would not hire Petraeus for the top diplomatic post for several reasons, including that his professional experience has mostly been limited to military operations in the Middle East.

However, his leaking of classified information seems an obvious disqualifier, said the former spy, who spoke only on condition of anonymity.

“The fact someone who acknowledged committing that would even be considered is surprising to me,” he said. “Especially since Trump made that such a part of his campaign against Clinton. It is asking for trouble. [Petraeus] left the CIA in disgrace.”

Trump himself frequently used the retired general’s case to assert that Clinton was getting preferential treatment.

“Other lives, including Gen. Petraeus and many others, have been destroyed for doing far, far less,” Trump said at a rally in October of Clinton’s email troubles. “This is a conspiracy against you, the American people, and we cannot let this happen or continue.”

Trump also singled out retired Marine Gen. James Cartwright, who recently pled guilty to lying to the FBI about allegations he shared classified information with the news media on a highly classified program to disrupt Iran’s nuclear weapons program.

But while the FBI concluded Clinton was reckless in her decision to use a private computer for government business, her actions were not deemed serious enough to warrant prosecution.

Conversely, the bureau concluded what Petraeus did was far more significant.

“So you have obstruction of justice, you have intentional misconduct and a vast quantity of information,” FBI Director James Comey told the House Oversight and Government Reform Committee of Petraeus’ actions. “He admitted he knew that was the wrong thing to do. That is a perfect illustration of the kind of cases that get prosecuted.”

Others said the mere fact that Petraeus is on Trump’s short list for such a position of authority demonstrates how valuable he is.

Petraeus is considered one of the most accomplished battlefield commanders of his generation, a thinking general with a Ph.D. who helped orchestrate the counterinsurgency strategy that reduced some of the worst violence in Iraq and who was tapped by Obama to run the war in Afghanistan before being elevated to run the CIA in 2011.

He also has powerful friends on Capitol Hill, including Republican Sen. John McCain, the Armed Services chairman. It was before McCain’s committee last September that Petraeus made his first appearance before Congress after his departure from the CIA.

“I made a serious mistake, one that brought discredit on me, and pain closest — to those closest to me,” Petraeus said. “It was a violation of the trust placed in me and a breach of the values to which I had been committed throughout my life. There’s nothing I can do to undo what I did. I can only say again how sorry I am to let — to those I let down, and then strive to go forward with a greater sense of humility and purpose, and with gratitude to those who stood with me during a very difficult chapter in my life.”

“In light of all that, it means a great deal that you have asked me to share my views on the challenges in the Middle East, where, as you noted, I spent most of my last decade in government,” he added. “I thank you for that, Mr. Chairman. And I thank you for the support and friendship that you have long extended to me.”

Despite the black mark on an otherwise stellar career, Petraeus’ advice remains highly sought after. For example, he was back at the White House in April, according to the public logs, to meet with the president’s Foreign Intelligence Advisory Board.

Some of Petraeus’ former colleagues believe his transgressions should be overlooked as Trump seeks to build his national security team.

“Gen. Petraeus’ service to his country was cut short by mistakes he made and acknowledged,” Mike Morell, who served as his deputy at CIA, told POLITICO. “The nation would be lucky if he were able to serve again. The general is a man of deep talent and experience.”

Others aren’t so sure.

“I think it’s a difficult case because his virtues are so unusual and the misdeed is so significant,” Richard Danzig, a former Navy secretary who also still holds a security clearance, said in an interview. “I think it is a comment on his extraordinary virtues that he would would be considered even in the case of the flaw. It is a decision Trump will have to make.”

Some on Capitol Hill also expressed deep reservations on Monday.

“Hillary does it — ‘lock her up.’ Gen Petraeus does it — CABINET POST! No.” Doug Stafford, Sen. Rand Paul’s chief strategist, wrote on Twitter on Monday.

Those who know and admire Petraeus say there is also something else driving his candidacy: Ever since his scandal he has been fiercely plotting how to write a new chapter of his public career.

“David is the guy who has always raised his hand,” said the former senior intelligence official. “His a very ambitious guy.”

After their meeting at Trump Tower in New York on Monday, Trump praised Petraeus on Twitter. “Just met with General Petraeus — was very impressed!” he wrote.

Not to be outdone, Petraeus briefly stopped to talk to reporters, saying that in their meeting Trump demonstrated an impressive understanding of world affairs.

“He basically walked us around the world,” Petraeus said of Trump. “Showed a great grasp of a variety of the challenges that are out there and some of the opportunities as well. Very good conversation and we’ll see where it goes from here. We’ll see where it goes from here.”

Trump is reportedly also considering former Massachusetts Gov. Mitt Romney for secretary of state. Trump is due to meet with Romney to dicuss the job on Tuesday, along with Senate Foreign Relations Chairman Bob Corker (R-Tenn.).

But in Trump’s own estimation, Petraeus deserves another chance at the highest rungs.

When Petraeus quit the CIA, Trump told ExtraTV, an entertainment news outlet, that the general “was really beyond reproach, there was nobody like him. And now he showed certain frailties, certain weaknesses. It can never be the same, but certainly he can make a comeback.”

(h/t Politico)

Repeal Obamacare? Maybe Not, Says Trump

The “repeal” of Obamacare had been the top priority for the incoming Trump administration in the chaotic week after his surprise win.

Maybe not so much now.

The president-elect has a Republican-dominated House and Senate in Congress to help him try, but experts say full repeal won’t be so easy. And it may not be what the new administration even wants now.

The Trump transition team posted a policy website with a skeleton rundown of priorities.

“A Trump Administration will work with Congress to repeal the ACA (Affordable Care Act)and replace it with a solution that includes Health Savings Accounts (HSAs), and returns the historic role in regulating health insurance to the states,” it reads.

But Trump told the Wall Street Journal he would consider keeping two of its most popular provisions — one that allows adult children to stay on their parents’ health insurance plans, and another that would forbid insurance companies from refusing to cover “pre-existing conditions.”

“I like those very much,” the newspaper quoted Trump as saying Friday.

The Obama administration is still talking up the law, announcing via Twitter on Thursday that 100,000 people signed up for coverage on the “Obamacare” exchanges on Wednesday, the day after the election.

The ACA, widely known as Obamacare, has been the signature achievement of Obama’s two terms. It sought to transform the unruly, expensive and inefficient U.S. health care system by stopping what were widely considered insurance company abuses, such as dumping people when their health conditions got too expensive to cover and refusing to pay for pre-existing conditions.

The ACA requires health insurance companies to pay for cancer screenings, wellness checks and vaccinations with no co-pay, and it allows children to stay on their parents’ policies until age 26.

It puts into place gradual incentives to move from a system where people pay piecemeal for health treatments and, instead, reward doctors and hospitals for keeping patients well and managing their diseases. And most of all, it sought to provide health insurance to the 15 percent of Americans who did not have it before the law passed.

It’s gone a long way to doing that. Only 8.9 percent of Americans now lack health insurance.

Republicans actually like many of these aspects of Obamacare, which was loosely based on Mitt Romney’s plan for Massachusetts when he was the Republican governor there.

“The Administration recognizes that the problems with the U.S. health care system did not begin with — and will not end with the repeal of — the ACA,” the new Trump policy statement reads.

Much of the public debate has come because the average person does not understand what Obamacare does and what it doesn’t do, said Timothy Jost, an emeritus professor at the Washington and Lee University School of Law and an expert on health care.

“Frankly, everything that has gone wrong with the health care system for the past six years has been blamed on Obamacare,” Jost said. “Everything that goes wrong with the health care system for the next four years will be blamed on Trump care. People who think we can just repeal Obamacare and everything will be great are in for a very, very, very rude surprise.”

Unlikely to lose coverage in 2017

For one thing, the Trump administration is going to worry about the political risks of leaving 20 million people suddenly without health insurance.

“The number of uninsured is expected to grow to about 50 million people with ‘repeal and replace’,” PriceWaterhouseCoopers (PwC) says in a report released this week. “Trump’s challenge will be to lower that number through his replacement proposals.”

Trump cannot do much alone.

“The White House is just one part of a much larger machine. To really put his stamp on health policy, Trump must work with a patchwork of federal lawmakers, regulatory agencies, trade and advocacy groups, and the Supreme Court. These institutions will either accelerate or decelerate Trump’s agenda,” PwC said.

The people who now have coverage on the exchanges — including people signing up right now during open enrollment — are unlikely to lose their coverage in the coming year, experts from all political viewpoints agree.

“The new administration is going to want to do something fast to show that they are keeping their promise to fundamentally change the federal role in the health care system,” said Michael Sparer, a professor of health policy and management at Columbia University.

One thing a new Republican administration could do immediately is drop appeals against last May’s federal court ruling that said the Obama administration was illegally paying insurance companies to help keep health insurance costs down for low-income clients.

These so-called cost sharing reductions reimburse health insurers for charging lower co-pays and deductibles for more than 60 percent of Obamacare customers. Congress refused to allocate money to do that, and a federal district judge ruled in May that the administration couldn’t spend that money. The federal government kept on doing so while it appealed.

Symbolic moves

A new administration could stop fighting that right away, although it’s not a particularly sexy issue for voters. And it might irritate health insurance companies, Jost said.

“I don’t think anyone disagrees that it would be the insurers left holding the bag,” Jost told NBC News.

A new administration could also stop fighting lawsuits against the mandate that employers pay for birth control for women covered under their insurance plans, Sparer said. That might be popular with conservatives who said the requirement forced them to violate their religious beliefs.

There could be symbolic moves, also. The new Republican-led Congress may immediately vote on a repeal that will almost certainly be stopped by a Democratic filibuster in the Senate. While the Democrats do not have a majority in the Senate, they have enough seats to stop some legislation with a filibuster.

“I think the only grand gesture they can make is to blame Democrats for filibustering their attempts to repeal the Affordable Care Act,” said Jost.

Sparer agreed that is likely. Republicans could campaign to get more seats in the Senate in the 2018 elections. “That gives them a couple of years to think about what the replacement plan they want to come up with is,” Sparer said.

A new Trump Health and Human Services Department could also stop promoting open enrollment onto the Obamacare exchanges, which closes at the end of January —10 days after Inauguration Day. Enrollment usually spikes right at the deadline, and simply stopping outreach could hit numbers.

In fact, doing nothing could accomplish a lot, said Jost.

“It has been a full court press by the Obama administration since 2010 to get this thing implemented and it has taken a Herculean effort,” Jost said. “As soon as it stops moving forward, it could start moving backward pretty quickly. Almost just by doing nothing there could be some very negative effects.”

Tevi Troy, president of the American Health Policy Institute, says Republicans plan to use the budget process to tweak the law. “I would look to the reconciliation package,” he told NBC News. “This is the mechanism for how we move forward on this.”

Re-branding with a new plan

Budget issues can pass the Senate with a simple majority, bypassing Democrats who may object, although they must go through a lengthy process involving committees.

Troy said the GOP has been discussing ways to provide a transition period so as not to throw the health insurance and health care industries into chaos.

“What I always hear is that Republicans have no plans on replacing the Affordable Care Act. I think that is not only untrue, but unfair,” Troy said.

An immediate target may be the unpopular exchanges, the web-based system for buying health insurance. Troy says they are unnecessary, and changing them up would be an easy way for Republicans to re-brand Obamacare. “People can get health care without exchanges,” he said.

Trump has put forward the idea of allowing people to buy health insurance across state lines, and Troy said that could lower costs by creating more competition, although it will be a messy task to undertake since insurance is now firmly regulated by states.

Trump’s also advocated the use of health savings accounts and tax credits to help people pay for health insurance, although experts such as Jost say it’s not clear how those would help low-income people.

The mandate to buy health insurance is another obvious target for a new administration, even though Republicans originally supported the idea. It’s there to try to ensure that enough healthy people buy health insurance so that companies can profitably pay for the sick, but it’s been seen as onerous.

And it hasn’t worked well as an incentive, said Caroline Pearson of consultancy Avalere Health. Simply dropping enforcement of the mandate would be popular and easy, while causing little damage to existing coverage.

(h/t NBC News)

Trump Campaigned Against Lobbyists, But They Fill His Transition Team

Donald Trump campaigned as an outsider who vowed to “drain the swamp” in Washington, but the president-elect’s transition team is packed with veterans of the GOP establishment, as well as with lobbyists for the fossil fuel, chemical, pharmaceutical and tobacco industries.

As Trump and his aides vet nominees for his Cabinet and lay out a first 100-day agenda, they are leaning heavily on the sort of DC insiders that the billionaire railed against on the campaign trail — people who cut their teeth working for Presidents George H.W. Bush, George W. Bush and former nominee Mitt Romney, as well as on the influence peddlers Trump accuses of ‘rigging’ the system against ordinary Americans.

One Republican lobbyist told POLITICO that the president-elect has no choice but to turn to GOP veterans with government experience to launch a new administration.

“Who else are you going to go to?” the lobbyist said. “Unless you get some used car salesman from Dubuque, Iowa, you go to policy people.”

To be sure, members of the transition team are not guaranteed jobs in the Trump administration — for now, they’ve been enlisted simply to assemble policy papers, vet potential nominees and develop road maps for governing. But their involvement makes it more difficult for the president-elect to portray himself as a political outsider — a development that at least some regard as positive.

“The fact that Donald Trump is reaching into the big pool of his party for some of the most highly qualified candidates is a good thing,” said one former Bush administration official. “It would be a huge mistake to not draw on that talent. I understand the campaign rhetoric. But if he’s not drawing from the Republican Party — and he’s obviously not drawing from the Democratic Party — where would he draw from?”

But some in the original band of insurgents are resentful. “The Bush crew is definitely trying to pretend that Trump’s win is not a direct repudiation of their failed administration,” said one early supporter. “I’m surprised by the hypocrisy of the whole thing.”

There’s also Ado Machida, a top domestic policy aide to former Vice President Dick Cheney; David Bernhardt, Interior Department solicitor, and James F. Manning, a senior Education official, both for the younger Bush; and Ken Blackwell, undersecretary at Housing and Urban Development, and David Malpass, deputy assistant secretary of state, both for the elder Bush.

Former Bush officials are expected to find a place in Trump’s Cabinet too. Pamela Patenaude, a potential pick to lead Housing and Urban Development, was an assistant HUD secretary under the younger Bush; and Van Hipp Jr., a former deputy assistant Army secretary for the elder Bush, is seen as a leading candidate to be Army secretary.

William Evers, a possible pick for Education Secretary, worked at the younger Bush’s Education Department; Victoria Lipnic, a candidate for Labor Secretary, worked at his Labor Department; and Robert Grady, who served the elder Bush, is seen as a candidate to lead Interior, Energy, EPA or the Office of Management and Budget.

Trump’s transition team is also flush with lobbyists, raising questions about the president-elect’s promises to limit the influence of lobbyists in government.

During an October speech in Wisconsin, Trump vowed to “make our government honest once again.” He pledged to ask Congress to ban executive branch officials from lobbying the government for five years after they return to the private sector and to issue a similar five-year ban on former lawmakers and their staffs. He also proposed a lifetime ban on senior executive branch officials lobbying for foreign governments. And he said he would “close all the loopholes that former government officials use by labeling themselves consultants and advisers when we all know they are lobbyists.”

But his transition team includes lobbyists who represent powerful corporate interests, according to an organization chart obtained by POLITICO and lobby disclosure filings:

Cindy Hayden of tobacco giant, Altria, is in charge of Trump’s Homeland Security team.

J. Steven Hart, chairman of Williams & Jensen, is in charge of the Labor team. His clients include Visa, the American Council of Life Insurers, Anthem, Cheniere Energy, Coca-Cola, General Electric, PhRMA and United Airlines.

Michael McKenna of MWR Strategies, who is working on the Energy Department team, lobbies for Engie (formerly GDF Suez), Southern Company and Dow Chemical.

David Bernhardt of Brownstein Hyatt Farber Schreck who leads the Interior Department team, lobbies for the Westlands Water District in central California and used to represent Freeport LNG and Rosemont Copper.

Michael Torrey, who has the Agriculture Department portfolio, has his own firm representing the American Beverage Association and the Crop Insurance and Reinsurance Bureau.

Mike Catanzaro of CGCN Group, lobbies for the American Fuel and Petrochemical Manufacturers, a refining group, as well as Hess, Encana, Noble Energy and Devon Energy. Catanzaro is working on energy independence, along with Mike Ference, a lobbyist at the firm S-3 Group, representing Halliburton, Koch Industries and Marathon Oil.

Rolf Lundberg, who’s tasked with trade reform, worked at the Chamber of Commerce until 2013 and spun off his own lobbying firm representing Choice Hotels and the International Franchise Association.

Jim Carter, who oversees tax reform, is an in-house lobbyist for manufacturing company Emerson.

Transportation and infrastructure is being led by Martin Whitmer, the founder partner of lobbying firm Whitmer & Worrall who represents the American Association of Railroads, the National Asphalt Pavement Association and the Utilities Technology Council.

It is not known whether Trump will allow former lobbyists to serve in his administration — instead of simply limiting what they do after leaving government. Unlike Trump, Hillary Clinton’s transition team banned lobbyists altogether and made staff sign a code of ethics requiring transition officials to recuse themselves from working on any issue on which they have lobbied in the past year.

A person close to Trump’s transition told POLITICO that he has not heard any discussion about limiting the role of lobbyists in Trump’s administration.

“When you lock lobbyists out, you’re really handcuffing yourself,” the person said. “It looks good on paper and it sounds good … But you’re cheating yourself and really limiting the talent pool.”

Indeed, even Obama had trouble keeping lobbyists out of government. The president issued several waivers permitting former lobbyists to work in his administration. Some Democrats privately acknowledge such limits are important symbolically, but are difficult to enforce.

“It is a big error to sweep with a broad brush when it comes to lobbyists,” said another former Bush administration official, “because some of the most seasoned and capable people able to responsibly pull the levers of government are among the lobbying ranks. To deprive yourself from that skill set is a mistake.”

Trump’s decision to rely on veterans of all stripes comes as a relief for many in the establishment.

“Look I don’t want his administration filled with Breitbart and Ann Coulter — those kind of folks,” said Peter Wehner, who served in the last three GOP administrations and who has been an outspoken Trump critic. “I hope for the sake of the country that he gets competent people in place who know how to run the government because he has no earthly idea what to do. I’m sure he’s in the process of figuring out that the presidency is not a reality television show.”

A Trump spokeswoman did not respond to requests for comment.

(h/t Politico)

Reality

Trump supporters, say hello to your first of many broken campaign promises.

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