Scott Pruitt Bypassed the White House to Give Big Raises to Favorite Aides

In early March, Environmental Protection Agency Administrator Scott Pruitt approached the White House with a request: He wanted substantial pay raises for two of his closest aides.

The aides, Sarah Greenwalt and Millan Hupp, were part of the small group of staffers who had traveled with Pruitt to Washington from Oklahoma, where he had served as attorney general. Greenwalt, a 30-year-old who had worked as Pruitt’s general counsel in Oklahoma, was now his senior counsel at the EPA. Hupp, 26, was working on his political team before she moved to D.C. to become the agency’s scheduling director.

Pruitt asked that Greenwalt’s salary be raised from $107,435 to $164,200; Hupp’s, from $86,460 to $114,590. Because both women were political appointees, he needed the White House to sign-off on their new pay.

According to a source with direct knowledge of the meeting, held in the Eisenhower Executive Office Building, staffers from the Presidential Personnel Office dismissed Pruitt’s application. The White House, the source said, declined to approve the raises.

So Pruitt found another way.

A provision of the Safe Drinking Water Act allows the EPA administrator to hire up to 30 people into the agency, without White House or congressional approval. The provision, meant to help expedite the hiring of experts and allow for more flexible staffing, became law in 1996. In past administrations, it has been used to hire specialists into custom-made roles in especially stressed offices, according to Bob Perciasepe, a former acting EPA administrator.

After the White House rejected their request, Pruitt’s team studied the particulars of the Safe Drinking Water provision, according to the source with direct knowledge of these events. By reappointing Greenwalt and Hupp under this authority, they learned, Pruitt could exercise total control over their contracts and grant the raises on his own.

Pruitt ordered it done. Though Hupp and Greenwalt’s duties did not change, the agency began processing them for raises of $28,130 and $56,765, respectively, compared with their 2017 salaries. Less than two weeks after Pruitt had approached the White House, according to time-stamped Human Resources documents shared with The Atlantic, the paperwork was finished.

Word of the raises quickly began to circulate through the agency. The episode infuriated some staffers; to some political aides, it was evidence of Pruitt’s disregard for the White House’s warnings to cabinet officials that they avoid even the appearance of impropriety. It also underscored the administrator’s tendency to play favorites among his staff, according to two sources with direct knowledge of agency dynamics. Hupp, in particular, is making more than her Obama-era predecessor, a five-year veteran of the agency who did not break six figures until the final year of the administration, according to public records. (While Greenwalt has no obvious peer in the Obama administration, the EPA’s general counsel had an annual salary of $155,500 in 2016.)

Said one EPA official, who spoke on the condition of anonymity because they were not authorized to talk to the press: “This whole thing has completely gutted any morale I had left to put up with this place.”

“The Safe Drinking Water Act provides the EPA with broad authority to appoint scientific, engineering, professional, legal, and administrative positions within EPA without regard to the civil service laws. This is clear authority that has been relied on by previous administrations,” EPA spokesman Jahan Wilcox said in a statement. “The Administrator was not aware that these personnel actions had not been submitted to the Presidential Personnel Office. So, the Administrator has directed that they be submitted to the Presidential Personnel Office for review.”

The White House did not return requests for comment.

[The Atlantic]

Oil lobbyist linked to EPA secretary Scott Pruitt’s cheap DC condo rental had pipeline project approved

After his wife rented a Washington, D.C. condo to Environmental Protection Agency head Scott Pruitt for $50 a night, a Canadian oil lobbyist had his pipeline project approved by the department.

The New York Times reported Monday that the firm led by J. Stephen Hart, whose wife Vicki rented the condo to Pruitt, successfully lobbied the EPA to approve the Alberta Clipper pipeline in March 2017. The approval came despite Enbridge Inc. — a Calgary-based company that Hart’s firm Williams & Jensen lobbied for — being fined $61 million by the agency towards the end of Barack Obama’s presidency.

A spokesperson for Williams & Jensen told the Times that they did not interfere with the EPA or Pruitt before or after the administrator’s stay in the Hart condo. The company also said “it had not worked on similar regulatory issues for Enbridge in the past year, even though it was registered at the time as lobbying for the company on ‘issues affecting pipelines and construction of new pipelines,’” the report noted.

Shortly after the Times broke the story about the Alberta Clipper pipeline, Politico reported that White House chief of staff John Kelly has considered firing Pruitt — once considered to be a replacement for Attorney General Jeff Sessions — over this latest scandal.

The Daily Beast also reported Monday night that the owners of the townhome Pruitt rented hosted GOP fundraisers when he was living there.

[Raw Story]

Trump’s EPA chief Scott Pruitt caught living in prime DC condo owned by top energy lobbyist’s wife

President Donald Trump’s environmental chief has been living in a townhouse co-owned by the wife of a top energy lobbyist.

EPA administrator Scott Pruitt occupies the home a short distance from the U.S. Capitol, but neither the agency or lobbyist J. Steven Hart would say how much the Trump administration official has been paying to live in the prime location, reported ABC News.

The cost of the rental agreement will be a key question in determining whether the property is an improper gift, according to ethics experts.

Hart confirmed to ABC News that Pruitt lived in the condo, which is owned through a limited liability company that links to address owned by the lobbyist and his wife Vicki Hart — who is a lobbyist specializing in health care.

The Harts were described in 2010 by the newspaper Roll Call as a “lobbyist power couple.”

Steven Hart, chairman and CEO of Williams and Jensen, previously served in the Reagan Justice Department and is a top Republican fundraiser, and his firm reported more than $16 million in federal lobbying income last year.

“Among his many clients are the NRA and Cheniere Energy Inc., which reported paying Hart’s firm $80,000 a year,” ABC News reported.

[Raw Story]

The Trump administration wants to let bosses keep their workers’ tips

The Trump administration has kept its promise to let companies do business with less government oversight. From the Environmental Protection Agency to the Department of Health and Human Services, the administration has rolled back rules on oil companies, banks, and health insurance companies.

Trump’s efforts could soon reach your neighborhood restaurant, barbershop, and nail salon. One of the administration’s major deregulation efforts is currently underway at the Department of Labor — and if implemented, it could potentially hurt millions of American workers who get tips as part of their jobs.

The agency is considering a new rule that would give employers unprecedented control over what to do with a worker’s gratuities. The rule, which the agency proposed in December, would repeal an Obama-era regulation that made official what had been the common view for decades: that tips are the sole property of the workers who earn them. It would essentially allow employers to use their workers’ tips for tip-pooling arrangements, provided their workers make the minimum wage.

If the new rule is finalized, it would be a boon to the restaurant industry, which has been fighting for years to control how servers’ tips are distributed.

“This is a major departure from how the DOL has always interpreted the law,” said Judith Conti, the federal advocacy coordinator for the National Employment Law Project. “It sets policy for all tipped workers: parking attendants, car washers, airport valets, taxi drivers, hotel bellhops.”

The rule would have an immediate effect in at least six states, including Arizona and Nevada, where employers are required to pay the full minimum wage to all tipped workers. (Under federal law, the minimum wage for tipped workers is only $2.13; the full minimum wage is $7.25.)

But even states that don’t require the full minimum wage for tipped workers will be affected. Workers who earn the full minimum wage but still count on tips to supplement their pay — such as barbers and nail technicians — could see their take-home pay affected. (According to one estimate, there are 4.3 million tipped workers in the US.)

The rule would also create an incentive for some restaurant owners in those states to pay servers the full $7.25 hourly minimum wage. That might sound like good news for servers who make only the tipped-worker minimum wage of $2.13 per hour — but if those workers normally make enough tips to push their pay above $7.25, the new rule would allow their employers to take any tips they earn above minimum wage, effectively lowering their take-home pay. Including tips, the average hourly wage for restaurant servers in the United States was $11.73 in 2016.

The new rule would allow restaurant owners to do two things in particular. First, it would let employers collect the servers’ tips into a pool that would be shared with back-of-the-house workers — dishwashers, cooks, etc. — who have to be paid the regular minimum wage and aren’t typically tipped. Restaurant owners say that back-of-the-house workers should get a share of the tips because they contribute to a customer’s overall experience, but labor rights groups and servers argue that restaurant owners should just pay those workers better, instead of using servers’ tips to subsidize their pay.

But the second way employers could use the tips goes even further than expanding this type of tip pooling. The rule lists examples of how else employers could use a worker’s gratuities: to renovate their restaurants, lower menu prices, or hire more workers. In other words, it allows restaurant owners to keep the tips for themselves.

The proposal immediately triggered outrage among restaurant servers and labor rights groups, who flooded the Department of Labor with thousands of comments.

The Economic Policy Institute, a left-leaning think tank, estimates that the rule would likely transfer about $5.8 billion in tips each year from workers to their bosses — about 16.1 percent of all their tips. Labor Secretary Alexander Acosta reportedly tried to hide an internal analysis showing that the rule could take $640 million from workers (an initial analysis showed it would actually take billions of dollars), according to a Bloomberg investigation. Now the agency’s inspector general is investigating the allegations.

“It’s really, really troubling,” said Sharon Block, a law professor at Harvard who worked at the Department of Labor under the Obama administration and who helped develop the Obama-era rule clarifying that tips were the property of the workers who earned them. “This is no small thing for people who really can’t afford to be subsidizing their employers.”

Despite the backlash, the Department of Labor is still considering implementing the new rule. A spokesperson for the department said the agency is currently in the process of reviewing more than 375,000 public comments it received.

[Vox]

Trump properties collect more than $271,000 in a single month from GOP donors

The Republican National Committee spent a little more than $271,000 last month at properties owned by President Trump, new campaign filings show.

Most of the money — $205,021 — went to Trump National Doral in Miami, for “venue rental and catering,” according to the party’s monthly report filed Tuesday night with the Federal Election Commission.

The Republican National Committee’s February spending is on top of the $1.1 million that Trump’s campaign and other Republican political committees and candidates reported spending at his properties during his first year in office. Although Trump relinquished management of his real-estate empire when he became president last year, he did not give up his ownership. As a result, using political donors’ money to host events at Trump properties helps boost the president’s personal bottom line.

Tuesday’s filing makes clear that the RNC has plenty of money to spend.

The committee raised $12.8 million in February, bringing its total fundraising to $157.7 million for the election cycle. The record-breaking haul has helped the party build a voter-outreach operation that’s already active in 25 states, according to party chairwoman Ronna McDaniel.

The party started March with $42.4 million in cash reserves, a dramatic improvement from the $10 million the RNC had in reserves at this point in the 2014 midterm elections.

By contrast, the Democratic National Committee has total receipts of $80.7 million so far in the 2018 election cycle. The Democrats started the March with nearly $10.1 million remaining in the bank, but the DNC has more than $6 million in debts, including a $1.7 million loan it secured last month.

[USA Today]

Kellyanne Conway cost taxpayers tens of thousands of dollars with trips on private jets

Kellyanne Conway traveled at least four times at taxpayer expense with former Health and Human Services Secretary Tom Price — and congressional Democrats want an explanation.

Price resigned Sept. 29 over his use of taxpayer-funded private jets during his seven months in office, and he has repaid a fraction so far of his travel expenses, according to Rep. Elijah Cummings (D-MD), the ranking Democrat on the House Oversight Committee.

The Department of Treasury has received three checks from Price, who now works as an adviser for Jackson Healthcare, totaling $59,389.97 as reimbursement, according to Cummings.

HHS documents confirm Conway, the former Trump campaign manager and now a senior White House adviser, traveled along with Price at least four times between May and September at a cost to taxpayers of tens of thousands of dollars.

Conway was joined on at least one of those flights by her staff, and she and Price also traveled with other unspecified White House officials.

The cost of those flights to taxpayers was at least $59,101.35, according to Cummings.

Other travel expenses were not provided to the committee.

[Raw Story]

Emails show Ben Carson and his wife were personally involved in buying $31,000 office furniture

Newly released emails show Ben Carson and his wife personally selected a $31,000 dining room set for his office at the Department of Housing and Urban Development.

The liberal watchdog group American Oversight obtained the emails through a Freedom of Information Act request, and the documents cast doubt on HUD spokesman Raffi Williams’ denial that Carson had any involvement in selecting the furniture, reported CNN.

“Mrs. Carson and the secretary had no awareness that the table was being purchased,” Willliams told CNN last month, when the story first broke. “The secretary did not order a new table. The table was ordered by the career staffers in charge of the building.”

Carson himself blamed the purchase on an unnamed HUD staffer, and told CNN he was “surprised” by the $31,000 price tag and promised to cancel the order — which the company confirmed had happened on March 1.

“The secretary did not order a new table,” said Carson, the HUD secretary. “The table was ordered by the career staffers in charge of the building.”

But the newly released emails show two Carson aides discussed the dining set back in May 2017, when they asked about repairing the “fairly precarious” existing furniture, which would have cost an estimated $1,100 to fix.

Carson’s statement earlier this month confirmed he feared the old furniture was “unsafe” and “beyond repair.”

HUD’s scheduling office contacted Candy Carson, the secretary’s wife, in August to take part in the office redecorating, although the emails don’t show a response from her.

Carson said he and his wife were told there was a $25,000 budget that must be used by a deadline or it would be lost, and they received a $24,666 quote for the furniture.

“The career administration staffer sent the quote to Carson’s office,” CNN reported, “specifically Carson’s chief of staff and his executive assistant, casting further doubt on the agency’s assertion that the purchase was made entirely by career staff.”

The staffer told Carson the quote seemed to be reasonable and justified the purchase because the previous furniture was purchased in 1988, and receipts showed HUD moved forward with the purchase — which was now $7,000 higher — four months later.

One email chain shows serving cart options were approved by “leadership” but doesn’t specify who made the request.

That appears to contradict Williams’ sweeping denial that Carson and his wife had any involvement in the purchase process, or any interest in doing so.

Helen Foster, a senior career official at HUD, says she was demoted and replaced by a Trump appointee after refusing to break the law to approve the over-budget redecoration.

[Raw Story]

Trump Jr. business partner has had access to government officials

A Texas hedge fund manager with business ties to Donald Trump Jr. was able to meet with top national security officials in the last year to pitch a plan that would help U.S. companies in Venezuela, The Associated Press reported Monday.

The news outlet obtained court records and documents that show Trump Jr. has been in business with Gentry Beach dating back to the mid-2000s, and that the two recently formed a company.

Beach and an Iraqi-American businessman met last year with National Security Council officials and pitched a proposal to curb sanctions in Venezuela and open up business for U.S. companies there, the AP reported.

An official told the news outlet that officials didn’t act on the pitch, but were told to take the meeting because of Beach’s ties to Trump Jr.

The Trump Organization said in a statement that Trump Jr. hasn’t played a role arranging meetings with “anyone at the White House or any other government agency.”

Beach told the AP in a statement that he never used his relationship with Trump Jr. to try and influence the government.

A Trump Organization attorney acknowledged that Trump Jr. had business relations with Beach in the past, but pointed the AP to a previously released statement that said their relationship was “strictly personal.”

The Trump administration has drawn scrutiny from watchdog groups since President Trump took office over concerns that the president has not adequately separated himself from his family’s business affairs.

Trump turned over the Trump Organization to his two adult sons, Trump Jr. and Eric Trump, when he took office. Multiple watchdog groups have filed complaints that the business is using the presidency to enrich itself.

[The Hill]

Out of Public View, Trumps and Kushners Are Talking Business

The Kushner and Trump families have both been in New York real estate for decades.

But until relatively recently, they didn’t work together on large projects.

That appears to be changing with a new Jeresy Shore development led by the Kushners, which the New York Times is reporting will have at least one hotel managed by the Trumps. According to the Times, there is a signed letter of intent.

“The long-running talks blur the line between family, business and politics in ways that lack precedent: Both Mr. Trump and Mr. Kushner, the president’s senior adviser and son-in-law, retain financial interests in their family businesses,” the Times writes. “The Trump Organization’s outside ethics adviser has raised questions about a potential deal—one reason the two-year-long discussions have not been completed.”

The report quotes an ethics advisor who points out that this conflict of interest may be the reason Trump hasn’t pushed his son-in-law out of the White House, despite Kushner losing his top-secret security clearance and reports that other nations were looking to exploit his massive debt load in negotiations.

“The concern is that the president might not want to do anything that would upset the Kushner family agreement to do business with his company,” said the ethics advisor.

The story goes on to detail all the places the Kushners have borrowed money and to discuss the rarely used emoluments clause of the Constitution.

[RawStory]

Interior secretary Ryan Zinke’s office spent $139,000 for construction on an office door

Records show the Interior Department spent nearly $139,000 last year for construction at the agency that was labeled on a work order as “Secretary’s Door.”

A spokeswoman for Interior Secretary Ryan Zinke did not provide answers Thursday to questions about whether changes had been made to a door in the secretary’s office.

Records show the Maryland contractor that performed the work, Conquest Solutions LLC, has done several renovation projects at federal buildings. A man who answered the phone at the company Thursday hung up when a reporter asked about Zinke’s office.

Zinke is one of several Trump Cabinet officials under scrutiny for questionable spending. He spent $53,000 on three helicopter trips last year, including one to go on a horseback ride with Vice President Mike Pence.

[Business Insider]

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