Congressional Oversight

Trump’s coronavirus speech proves, once and for all, that the emperor is never going to put on clothes. We have a government without anyone meaningfully in charge of anything other than making Trump and his cronies rich. Banning flights from Europe (and excluding the United Kingdom, where the health minister(!) has tested positive for the novel coronavirus and is self-isolating) indicates Trump’s xenophobia is now guided by throwing darts.

The way our financial regulatory system is constructed means that true accountability for Wells Fargo cannot ultimately flow from the committee hall. Instead, it must come from the cabinet departments and federal agencies which hold the power to prosecute, fine, and regulate our big banks.

Public health officials agree: coronavirus’ spread is no longer a matter of if but when. The only question now is, how bad is it going to get? The answer will rest on the efficacy of the government’s response, its ability to get resources where they need to be, keep the public informed and react quickly to new developments. The bad news? We have a president whose team is uniquely ill-suited to lead this process. The good news, however, is the government is larger than the executive.

On January 13, the Revolving Door Project and the Demand Progress Education Fund called on the Chairs and Ranking Members of the House Financial Services and Senate Banking Committees to “open an investigation into the Securities and Exchange Commission’s review of WeCompany’s aborted Initial Public Offering (IPO) and the integrity of its investigation into potential securities fraud within that same company.”

Lawmakers sold opportunity zones as a solution for this country’s poorest communities but, two years into the program, that claim does not seem to be holding up. Rather than infusing poor communities with much-needed cash, it seems that many zones are padding the already bursting pockets of some of the country’s wealthiest individuals. No story has better embodied the mismatch between the program’s intent and actual outcome than ProPublica’s report, out last week, detailing how a luxury apartment development in a superyacht marina came to qualify for the tax break. 

Eleanor Eagan
Rep. Ayanna Pressley introduced legislation last week to require the CEOs of the country’s largest banks to testify before Congress at least once per year. While this might seem a perfectly run-of-the-mill measure from an outside vantage point, it is a marked departure from this Congress’ aversion to most oversight (especially of corporations). Indeed, most members of Congress have shown no appetite for the type of populist, corporate oversight for which we at the Revolving Door Project have advocated. Pressley, along with a handful of other freshman Democrats (and Rep. Maxine Waters) are notable exceptions. It is long past time that their approach became more mainstream. 

For the better part of this year, House Democrats have been consumed by a battle over how best to use their newfound power. One side called for impeachment from the start. The other side insisted that Democrats focus on kitchen table issues like health care. But the choice has always been false; the House can and should do both. In addition to the active impeachment inquiry into Trump’s efforts to influence the 2020 election, there should be a second, no less serious impeachment inquiry into Trump’s efforts to undermine Obamacare.

Times are tough for American farmers. Everything from corporate consolidation to falling commodity prices is making it harder to get by. Strange, then, that the person most responsible for safeguarding their wellbeing, Secretary of Agriculture Sonny Perdue, brought the following message to a gathering of Wisconsin dairy farmers: “In America, the big get bigger and the small go out. I don’t think in America we, for any small business, we have a guaranteed income or guaranteed profitability.” In other words, he was telling the farmers: you’re probably screwed and there’s nothing you can do about it.

Eleanor Eagan
Today, the Revolving Door Project joined civil society partners to call on President Trump to rescind his Executive Order on Evaluating and Improving the Utility of Federal Advisory Committees. This recent Trump executive order calls for the elimination of one-third of existing Federal Advisory Committees (FAC) that are not statutorily mandated. The Order claims to offer a remedy for a problem — bloat in the FAC system — that does not exist. It does identify an actual problem for corporate America, though — more input from civil society can indeed dilute corporate influence in the workings of the executive branch. The order is, therefore, nothing more than the latest in this administration’s string of attacks on independent expertise and the public interest.  

When Nancy Pelosi announced the impeachment inquiry of Trump last Tuesday, CEPR’s Revolving Door Project (RDP) was already ahead of the news. RDP’s director, Jeff Hauser answered when reporters asked if Democrats would seek impeachment after the whistleblower allegations. Last year, he warned of then-Supreme Court nominee Kavanaugh’s proven willingness to rule “that the president is unreachable by the law while in office.”

It’s beyond redundant to say that Donald Trump must be impeached over the Ukraine scandal. The so-called transcript of his July phone call with Ukrainian President Volodymyr Zelevsky released last week — really a collection of notes — was already damning evidence of the president manipulating foreign policy for his personal political goals. Then the actual whistleblower complaint reconfirmed and solidified the case. Trump’s White House counsel, Donald McGahn, even wrote a memo cautioning him that using law enforcement powers to target a political adversary would be illegal and clearly impeachable.
But if Democrats are going to uncover more information through aggressive hearings and ultimately impeach the president, they need to recognize their most powerful adversary: Attorney General William Barr.

In soliciting election interference from Ukraine’s president, Trump did what had long seemed impossible; he committed an offense that even the most impeachment-phobic lawmakers couldn’t ignore. You don’t have to agree that this behavior is materially worse than other known misconduct — we certainly don’t — to celebrate that this particularly flagrant misstep sent the Democratic caucus over the edge. And since House Democrats are no longer paralyzed by a fear of falling into an unwanted impeachment inquiry, it is our hope that the Democratic caucus will finally begin to act like the opposition party it was elected to be.

Eleanor Eagan
Impeachment proceedings are officially underway, meaning that the tedious debate over whether or not to open an inquiry is (at least, hypothetically) behind us. Following revelations last week that President Trump has taken Congress’ refusal to impeach as a blank check, it is even becoming plausible that the days of Nancy Pelosi’s ridiculous ongoing opposition to impeachment are numbered. This is not to say that the impeachment fight is over; questions about the substance and style of the inquiry remain. Democrats, however, have crossed a major milestone. With the majority of the caucus no longer tied up by whether to even open an  impeachment inquiry, it is time they turn their attention to the other, related oversight they have neglected. Only then will they begin to resemble the opposition party voters thought they were propelling to power last fall.

Max Moran
Education Secretary Betsy DeVos testified before the House Education and Labor Committee five months ago. She sat down, cleared her throat, and proceded to dodge basic yes-or-no questions about everything from transgender rights to literacy programs to arming teachers for several hours. Through her evasiveness, and the many issues Democrats wanted to bring up, there was barely any discussion of the trillion dollar student loan crisis, a calamity chaining down a whole generation’s opportunity, and which is now larger than both credit card and auto loan debt. Over $1.4 trillion of the $1.5 trillion debt is part of the federal government’s student loan portfolio, which the Education Department oversees.

Does the Democratic leadership even want to wield power?

It’s hard to tell. Nine months into their House majority, Democratic committee chairs don’t seem to realize they have any powers at all besides the occasional sarcastic clap.

To be clear, Democratic House leaders possess a major power that Republicans can do nothing to block, obstruct, or impede: the power to issue and enforce subpoenas.