Today we look at the latest developments surrounding TikTok, how the House of Representatives is failing to comply with its own regulations and who is paying Lindsey Graham’s legal bills.
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Senators Call On CFIUS To ‘Impose Strict Structural Restrictions’ On TikTok
“Sens. Richard Blumenthal (D-Conn.) and Jerry Moran (R-Kan.) have called on the Committee on Foreign Investment in the United States (CFIUS) to conclude its review of TikTok and ‘impose strict structural restrictions between TikTok’s American operations and its Chinese parent company, ByteDance, including potentially separating the companies,’” reports Emily Baker-White.
In a letter to Treasury Secretary Janet Yellen, the senators said the “bombshell disclosure” that a ByteDance team spied on Forbes journalists last year “exemplifies the long-term, significant threat posed by ByteDance’s ownership and operation of TikTok.”
The letter comes at a moment of swelling regulatory concern about TikTok and ByteDance. Until recently, calls to ban or seriously restrict TikTok in the U.S. were a partisan issue, raised nearly exclusively by Republicans. But in recent months, some Democrats in the House and Senate have begun calling for a nationwide ban on the app, which is used by over 100 million Americans. The Senate passed a unanimous bill at the end of the year to ban the use of TikTok on federal government devices, and Democratic governors have also joined Republicans in banning the app on state-owned hardware.
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House Ethics Committee Fails To Enforce Its Rules On Legal Expense Funds, Government Watchdog Says
When U.S. representatives get other people to pay for their legal bills, they are supposed to file documents with the House Clerk explaining who is picking up the tab. But many of those filings are nowhere to be found. Now a government watchdog is asking congressional leaders to make the House Ethics Committee “enforce the regulations it already has on the books.”
Michelle Kuppersmith, the executive director of the nonprofit Campaign for Accountability sent a letter on Thursday to Speaker Kevin McCarthy (R-Calif.) and Minority Leader Hakeem Jeffries (D-Calif.) saying that members’ compliance with the rules has been uneven at best, and the ethics committee’s enforcement efforts appear to be “nonexistent.”
As of Thursday, at least eight quarterly reports and one trust agreement that should be available were not. It likely means House staffers didn’t correctly process the documents or that lawmakers already under legal scrutiny failed to comply with ethics rules.
“The Byron Donalds Legal Expense Trust is perhaps the most egregious example of the committee’s malfeasance,” Kuppersmith wrote, noting that only two of its five required documents are publicly available.
Other lawmakers in the 117th Congress with legal-expense funds included Reps. Sanford Bishop (D-Ga.), Tony Cardenas (D-Calif.), Madison Cawthorn (R-N.C.), Jeff Fortenberry (R-Neb.) and Alex Mooney (R-W.Va.).
Billionaire J.B. Pritzker Benefited From Tax Breaks, But He Doesn’t Think The Chicago Bears Should
To obtain tax dollars to help pay for a new stadium, “the $5.8 billion Bears would have to persuade the billionaire Illinois governor, J.B. Pritzker, to back the plan. As of now, Pritzker, a Democrat, appears lukewarm to the idea. ‘I love the Bears,’ he said, ‘but it’s a private business, and I honestly don’t think the public has an obligation to fund, in this major way, a private business.’”
That’s rich, coming from Pritzker, the wealthiest U.S. officeholder, worth an estimated $3.6 billion, considering he and his family have benefited from plenty of tax breaks.
In one example, partially released 2014 tax returns show Pritzker and his wife paid no state income tax despite reporting a taxable income of $2.9 million, according to the Chicago Tribune. As to why, a spokesperson for Pritzker said at the time that the then-gubernatorial candidate “made personal venture capital investments in Illinois companies, which qualified him for angel investment tax credits.” The incentive allows investors to claim up to 25% of $2 million in qualified Illinois ventures. From 2012 to 2014, the Chicago Sun-Times reported that Pritzker’s businesses received $1.9 million in tax credits under the program.The governor’s office did not reply to multiple requests for comment.
Continuing Irresolutions
Updates on Checks & Imbalances’ previous reporting
On Dec. 12, Rep. Lauren Boebert’s (R-Colo.) campaign made two disbursements to Venmo. The payments, which totaled about $380 were reversed on Dec. 31. The memo said the wrong account had been used. It was at least the second time Boebert’s campaign has had a gaffe with Venmo. In 2021, the campaign used the service to pay Boebert’s rent, a transaction it also reversed shortly thereafter. Spokespeople for Boebert did not respond to inquiries.
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Disarm the Deep State filed its 2022 year-end report last week, eight days after it was due. It was the second time in recent months that the super PAC, launched by QAnon figure Jim Watkins, has missed a filing deadline. Disarm the Deep State disclosed no contributions or disbursements during the reporting period, which covers the month of December.
Lindsey Graham Raised $158,000 For His Legal Expenses, Mostly From Other Senators
Sen. Lindsey Graham’s (R-S.C.) legal expense trust fund has raised at least $158,000 since November, according to government records. Almost all the funds came from executives of companies that rely on the federal government or the political committees of fellow senators.
In November, after three months of legal challenges, the Supreme Court ordered Graham to testify before an Atlanta-area grand jury investigating former President Donald Trump’s attempt to subvert the 2020 presidential election. Graham complied.
If the senator hopes to offset all of his legal bills, his expense fund is going to need to raise even more cash. On Nov. 30, Graham’s campaign paid $268,000 to Nelson Mullins Riley & Scarborough LLP, a law firm based in South Carolina. Graham’s legal expense fund paid the firm an additional $40,000 the following week.
Robert Castellani, the CEO of North American Rescue, chipped in $10,000. His company provides medical products for the military and has won $100 million in federal contracts since 2001.
Nicholas A. Mastroianni II also contributed $10,000. He is the chairperson of U.S. Immigration Fund, which helps foreign investors obtain permanent U.S. residency. To participate in the program, Mastroianni’s company needs to be approved by the Citizenship and Immigration Services.
A spokesperson for Graham, Kevin Bishop, declined to provide details about discussions Graham may have had with the donors about their businesses. “Senator Graham complies with all regulations and laws as required,” the spokesperson said.
Only one donor to Graham’s defense fund responded to Forbes’ inquiries. “I’ve worked with the senator for over a decade,” said Wallace Cheves, owner of Sky Boat Gaming, a casino developer. “I was happy to chip in.”
Leadership PACs for seven current Republicans maxed out with $10,000 contributions to their colleague, according to disclosures filed with the secretary of the senate and the Federal Election Commission. Republicans John Barasso (Wyoming), John Boozman (Arkansas), Michael Crapo (Idaho), Steve Daines (Montana), John Hoeven (North Dakota), James Lankford (Oklahoma) and Tim Scott (South Carolina) all routed money in Graham’s direction. The PAC of former Sen. Richard Shelby (Alabama) pitched in $10,000 as well. Shelley Moore Capito (West Virginia), Kevin Cramer (North Dakota) and Chuck Grassley (Iowa) sent several thousand dollars apiece. Some of these donations were reported previously by The Daily Beast and Raw Story.
Tim Scott’s Tomorrow is Meaningful PAC sent $10,000 to Graham’s official campaign, but noted that it was for the legal defense fund, a separate pool of money. “We are working with TIM PAC to ensure the donation and the public record are accurate,” said Bishop, the spokesperson.
Graham’s own campaign and PAC have not disclosed donations to his defense fund, but that may change soon. “Stay tuned,” Bishop said. “A donation is budgeted in the not-too-distant future.”
George Santos Could Be Banned From Fundraising By The FEC—Even As He Weighs Reelection
“The Federal Elections Commission told Rep. George Santos (R-N.Y.) on Tuesday that he has to hire a new campaign treasurer or he cannot raise funds or spend money on a reelection campaign—a warning that comes as Santos is reportedly testing the waters for a second term, despite bipartisan calls for his resignation amid a ballooning lying scandal,” reports Sara Dorn.
Santos will be unable to receive donations or spend any money from his campaign account without a treasurer, according to the FEC letter sent to Santos’ campaign office in Queens and made public on Wednesday.
Santos had ten days from the date of his treasurer’s resignation to hire a replacement (his previous treasurer, Nancy Marks, stepped down on January 25), the FEC wrote, requesting a response from Santos by March 31, suggesting he could retroactively report the new hire.
‘Democracy Is Important To Protect’: Exclusive Look At Rep. Emilia Sykes’ First Term In Congress
Rep. Emilia Sykes (D-Ohio) joins “Forbes Newsroom” to give a behind-the-scenes look at her first term in Congress, what drew her to politics and the state of both parties.
The NFL Donates Money To Politicians. Here’s Who Gets It
The NFL is run by “a bunch of fat-cat Republicans who vote socialist on football,” former Cleveland Browns owner Art Modell reportedly once said. But when it comes to the league’s recent political contributions, they’re split pretty evenly between Democrats and the GOP (with nothing going to any socialists).
The National Football League’s Gridiron-PAC contributed $624,000 to political committees in the run-up to the 2022 midterms, according to records with the Federal Election Commission.
In 2021 and 2022, the PAC contributed a total of $70,000 to two party committees that aim to get Republicans elected to Congress, and it donated an equal amount to the Democrats’ Congressional and Senatorial Campaign Committees. While PACs can only donate $15,000 a year to each of those committees, Gridiron-PAC squeezed in an extra $10,000 to each party by kicking in for their senate committees’ office-building expenses.
The parity carried over to the parties’ Congressional leadership. The campaign for then-House Speaker Nancy Pelosi (D-Calif.) received $10,000 from the NFL’s PAC, while the payout to the campaign for Minority Leader Kevin McCarthy’s (R-Calif.) hit $7,500. The Gridiron-PAC ran a reverse in the Senate, with Republican Leader Mitch McConnell receiving $7,500, and Chuck Schumer (D-N.Y.) taking in $5,000.
No surprise for a league that’s adverse to controversy, its PAC has largely steered clear of backing Congress’s most-contentious members.
Notably, the Gridiron-PAC also did not donate to NFL alumnus Herschel Walker.
The PAC’s treasurer did not respond to an inquiry.
Nikki Haley Plays ‘Eye Of The Tiger’ To Kick Off Her Presidential Campaign. That Could Be A Problem
“This probably isn’t the buzz Nikki Haley wanted to generate. On Wednesday, the former South Carolina governor and U.S. ambassador to the United Nations took to the stage in Charleston to spoil the not-so-well-kept secret that she’s running for President in 2024,” reports Brandon Kochkodin.
But what’s got everyone talking is the song she was playing to kick off the event — that 80’s soft rock staple “Eye of the Tiger” by Survivor. It’s no mystery why Haley chose the song. She’s a graduate of Clemson University (Go Tigers!).
Just one problem. The tune, which is best known as the theme for Rocky III, has gotten more than one Republican politician into a bit of hot water.
Former Republican presidential candidate Mike Huckabee settled a lawsuit with Survivor guitarist Frankie Sullivan in 2016 at a cost of $25,000.
Tracking Trump
“A special grand jury investigating efforts to overturn the 2020 election in Georgia recommended that some witnesses should be indicted for perjury, as the Fulton County district attorney could soon issue criminal charges in a years-long probe examining former President Donald Trump’s post-election efforts,” reports Alison Durkee.
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Florida Governor Ron DeSantis showed up at Donald Trump’s Miami resort last weekend. DeSantis, widely considered Trump’s top rival for the GOP presidential nomination, was at Trump National Doral to speak before the Council for National Policy, a right-wing nonprofit that had worked to overturn the results of the 2020 election.
Entrepreneur and pundit Vivek Ramaswamy also showed up at the resort. A one-time hedge fund partner who swept into the biotech industry, Ramaswamy has “his eye on the presidency,” Politico reported on Monday.
Former Democratic presidential candidate Tulsi Gabbard, who now serves as a Fox News host, also made an appearance.
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Kyle Rittenhouse returned to Mar-a-Lago and met again with Trump, according to an Instagram post from earlier this week. In November 2021, a jury found Rittenhouse not guilty for fatally shooting two people and wounding a third during a protest in Kenosha, Wisconsin.
Across Forbes
In Closing
Breathe out, breathe in
American oxygen, whoa
Every breath I breathe
Chasing this American Dream
We sweat for a nickel and a dime
—Rihanna, “American Oxygen”