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    Trump promised riches from ‘liquid gold’ in the US. Now fossil fuel donors are benefiting

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    Kelcy Warren was among the top donors for Donald Trump’s 2024 White House bid, personally pouring at least $5m into the campaign and co-hosting a fundraiser for the then presidential hopeful in Houston.Trump’s win appears to already be benefiting Warren and Energy Transfer Partners, the pipeline and energy firm of which he is co-founder, executive chair and primary shareholder.“We will be a rich nation again, and it is that liquid gold under our feet that will help to do it,” Trump said in his inaugural address.Though domestic fossil fuel production reached record levels under Joe Biden, his policies to boost renewable energy still sparked fear among oil and gas companies, said Mark Jones, a political scientist at Rice University in Houston, Texas. “There was a threat of moving toward a net zero world … maybe not now, but there was an idea that would happen if Democrats stayed in the White House,” said Jones.For Warren and other oil billionaires, Trump removed that fear, Jones said.Energy Transfer Partners reported a year-over-year increase in profits in the first quarter of this year. In an earnings call last month, company top brass praised the new administration and more supportive regulatory environment.Among Trump’s moves that have benefited the company: a day-one move to end Biden’s pause on liquefied natural gas exports, which enables Energy Transfer to proceed with a long-sought-after LNG project in Lake Charles. On 13 May, Trump’s Federal Energy Commission (Ferc) also granted a three-year extension for the LNG project, which the company said was necessary for the project to succeed.In the week after the Ferc decision, Warren’s wealth rose by nearly 10%, noted Sarah Cohen, who directs the climate and wealth inequality-focused non-profit Climate Accountability Research Project (Carp).“That decision wouldn’t have been possible under Biden’s LNG pause,” said Cohen, who calculated the change using the Bloomberg billionaires index.Since that Ferc decision, Energy Transfer Partners has also secured a 20-year deal to supply a Japanese company with up to 1m metric tons of LNG a year.Other Trump orders to “unleash American energy” and declare an energy emergency to promote fossil fuels despite already booming production, for instance, are set to benefit Energy Transfer Partners by making it easier to expand the use all kinds of fossil fuels, thereby boosting the demand for pipelines.Also fueling that demand: the projected boom in datacenters. Energy Transfer Partners has received requests to power 70 new ones, the Guardian reported in April, marking a 75% rise since Trump took office.View image in fullscreenBy appointing fossil fuel-friendly officials to top positions, such as the former energy CEO Chris Wright to head the energy department and the pro-oil and -gas Doug Burgum to the interior department, Trump has also “showed his allegiance to companies like Energy Transfer Partners”, said Cohen.“They’re really creating this environment that’s great for oil and gas,” she said. “The message is ‘We’ll give you what you want.’”Energy Transfer did not respond to requests from the Guardian to comment.Ties to TrumpWarren ranks among the richest 500 people in the world, with Forbes placing his net worth at $7.2bn. He has long deployed his wealth to support the GOP, including by becoming the 13th-largest corporate funder to Trump’s Make America Great Again Super Pac last year with a $5m donation.He has also spent his fortune in more eccentric ways. His $30m, 23,000 sq ft Dallas mansion includes a movie theater and bowling alley, and among his other assets are a 8,000-acre ranch near Cherokee, Texas, which is home to zebras, javelinas and giraffes; a 20,000-acre golf resort in Lajitas, Texas; a private island near Roatán, Honduras; and numerous private aircraft, including a Dassault Falcon 900 jet.A lover of folk music, Warren also started a record label in 2007 alongside the singer-songwriter Jimmy LaFave, with whom he has also written songs. “If you hear me now,” goes one song for which Warren penned the lyrics, “maybe you could pull some strings.”The pipeline mogul accumulated most of his wealth from Energy Transfer Partners, which owns and operates about 130,000 miles of energy infrastructure in the US. In recent months, the firm has been criticized by advocates for its successful lawsuit against the environmental non-profit Greenpeace, which in March yielded a verdict that threatens to bankrupt the organization.Warren has long enjoyed a relationship with the president, donating generously to his first campaign and attending closed-door meetings during his first term. Though Warren is not known to have attended the infamous May 2024 meeting during which Trump asked oil bosses for $1bn and pledged to overturn environmental rules, he did co-host a fundraiser for the president in Houston weeks later.He is one of a handful of the most powerful oil billionaires from Texas, where there are no limits on contributions to candidates and political committees.“Texas has always been kind of a testing ground for the most extreme politics and issues that the Republicans pursue,” said Matt Angle, founder of the Lone Star Project, a Democratic Pac in the state. “In Texas, people like him are used to being able to donate to get their way.”Unlike some other Texas energy barons, such as the Christian nationalist Tim Dunn, Warren is not driven by dogma, said Jones.“Kelcy Warren is not necessarily ideological,” he said. “He may be in sync with Trump on some other issues, but his support for Donald Trump is largely because of what Trump proposed to do [for] the energy sector.”skip past newsletter promotionafter newsletter promotionOne big, beautiful billThe reconciliation bill, which the House passed last month and the Senate is now debating, is also expected to be a boon to Energy Transfer Partners and Warren. Known as the “one big beautiful bill”, it is expected to slash Biden-era incentives for renewable energy, tamping down competition in the energy market.A number of more esoteric provisions in the bill will also prove beneficial for the company, according to a review by Carp shared with the Guardian. One provision in the House-approved version, for instance, would allow the Department of Energy to determine that a proposed LNG export facility is in the “public interest” if the applicant pays $1m – something Energy Transfer Partners could afford to do. It’s a “pay to play” scenario, said Carp co-founder Chuck Collins.View image in fullscreenOther provisions would expedite the build-out of LNG export infrastructure, force the government to hold lease sales for fossil fuels even when demand is low and reverse protections to allow drilling in some areas without any judicial review. Still others would stymy federal agencies’ ability to implement new climate rules by requiring that major changes obtain congressional approval, allow gas developers to pay a $10m fee to bypass permitting processes, limit who can bring lawsuits over gas infrastructure and allow firms to pay taxpayers less to use public land, Carp found.The bill is also set to hand fossil fuel companies huge tax breaks – including by extending tax cuts in the Trump-backed 2017 reconciliation bill, from which Energy Transfer Partners reported a tax benefit of $1.81bn.In one example, the House’s version of the bill would reinstate 100% “bonus depreciation” for qualified properties, allowing companies such as Energy Transfer Partners to completely write off new infrastructure such as pipelines on their taxes, and see the benefits immediately. It’s also expected to apply to private jets, Collins noted.Other tax breaks in the proposal are expected to personally benefit ultra-wealthy Americans such as Warren.“The most wealth I’ve ever made is during the dark times,” Warren told Bloomberg a decade ago.PipelinesUnder Trump, Energy Transfer Partners will also probably save money on pipeline safety compliance. Since the president re-entered the White House in January, enforcement from the Pipeline and Hazardous Materials Safety Administration has dropped. Across the pipeline industry, the PHMSA opened only four enforcement actions in April, and zero in March – marking the first month since the subagency’s 2004 launch when no cases were initiated, E&E News reported.“That fits right in with the philosophy or paradigm of the Trump 2.0 deregulation agenda,” said Carp’s Cohen.A lack of action from the body could lead to savings for Energy Transfer Partners, which has paid millions in fines to the PHMSA.In March, Energy Transfer Partners also sued the PHMSA, claiming that its enforcement system is “unconstitutional”. Success in the suit could mean the company is forced to pay fewer penalties.Shielded from tariffsAnother Trump policy from which Energy Transfer Partners will benefit: an exemption for oil and gas from his new tariffs. The president provided the industry wide shield after a meeting with the American Petroleum Institute lobby group, of which Warren’s company is a member.The firm’s profits may still be blunted by other tariffs, such as those on aluminum and other products needed for pipeline construction, but the energy sector expects those losses to be offset by the soon-to-be-passed reconciliation bill, Politico reported in April.“The energy companies would prefer not to have the tariffs, sure,” said Jones. “But those are not a negative that outweighs what they view as the existential threat that Democrats represent … the existential threat of net zero.” More

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      ‘I have never seen such open corruption’: Trump’s crypto deals and loosening of rules shock observers

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      Cryptocurrency multibillionaire Justin Sun could barely contain his glee.Last month, Sun publicly flaunted a $100,000 Donald Trump-branded watch that he was awarded at a private dinner at Trump’s Virginia golf club. Sun had earned the recognition for buying $20m of the crypto memecoin $Trump, ranking him first among 220 purchasers of the token who received dinner invitations.Trump’s much-hyped 22 May dinner and a White House tour the next day for 25 leading memecoin buyers were devised to spur sales of $Trump and wound up raking in about $148m, much of it courtesy of anonymous and foreign buyers, for Trump and his partners.Memecoins are crypto tokens that are often based on online jokes but have no inherent value. They often prove risky investments as their prices can fluctuate wildly. The $Trump memecoin was launched days before Trump’s presidential inauguration, spurring a surge of buyers and yielding tens of millions of dollars for Trump and some partners.Trump’s private events on 22 May to reward the top purchasers of $Trump have sparked strong criticism of the president from ethics watchdogs, ex-prosecutors and scholars for exploiting his office for personal gain in unprecedented ways. But they fit in a broader pattern of how Trump has exploited the power and lure of his office to enrich himself and some top allies via cryptocurrencies.“Self-enrichment is exactly what the founders feared most in a leader – that’s why they put two separate prohibitions on self-benefit into the constitution,” said former federal prosecutor Paul Rosenzweig. “Trump’s profiting from his presidential memecoin is a textbook example of what the framers wanted to avoid.”Scholars, too, offer a harsh analysis of Trump’s crypto dealings.“I have never seen such open corruption in any modern government anywhere,” said Steven Levitsky, a professor of government at Harvard University and an expert on authoritarian regimes who co-authored the book How Democracies Die.Such ethical and legal qualms don’t seem to have fazed Trump or Sun. The pair forged their ties well before the dinner as Sun invested $75m in another Trump crypto enterprise, World Liberty Financial (WLF), that Trump and his two older sons launched last fall and in which they boast a 60% stake.The Chinese-born Sun’s political and financial fortunes, as well as those of other crypto tycoons, have improved markedly since Trump took office and moved fast to loosen regulations of cryptocurrency ventures at the Securities and Exchange Commission (SEC), the justice department and other agencies to upend Joe Biden’s policies.As the SEC has eased regulations and paused or ended 12 cases involving cryptocurrency fraud, three Sun crypto companies that were charged with fraud by an SEC lawsuit in 2023 had their cases paused in February by the agency, which cited the “public interest” and reportedly has held settlement talks.Trump’s and Sun’s mutually beneficial crypto dealings symbolize how the US president has boosted his paper wealth by an estimated billions of dollars since he returned to office, and worked diligently to slash regulations fulfilling his pledges to make the US the “crypto capital of the planet” and end the “war on crypto”.After the 22 May dinner, Sun posted: “Thank you @POTUS for your unwavering support of our industry!”Although Trump’s crypto ventures are less than a year old, the State Democracy Defenders Fund watchdog group has estimated that as of mid-March they are worth about $2.9bn.In late March, Reuters revealed that WLF had raised more than $500m in recent months and that the Trump family receives about 75% of crypto token sales.Trump’s pursuit of crypto riches and deregulation represents a big shift from his comments to Fox News in 2021, when he said that bitcoin, a very popular crypto currency, “seems like a scam”.View image in fullscreenIn July 2019, Trump posted that “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade”, and noted that their value was “highly volatile and based on thin air”.Now, Trump’s new pro-crypto policies have benefited big campaign donors who lead crypto firms as well as Elon Musk, the world’s richest person, who spent almost $300m to help elect Trump, and who boasts sizable crypto investments in bitcoin through his electric car firm Tesla and his other ventures. Though Trump and Musk have since fallen out, the mogul’s crypto fortunes seem to have improved due to the president’s deregulatory agenda.Trump’s special envoy to the Middle East, Steve Witkoff, is a real estate billionaire who helped found WLF, in which he has a stake; Trump’s two oldest sons, Eric and Don Jr, and Witkoff’s son Zach have played key roles promoting WLF in the Middle East and other places.Trump’s use of his Oval Office perch to increase his wealth through his burgeoning crypto businesses while his administration rapidly eases regulations is unprecedented and smacks of corruption, say scholars, many congressional Democrats and some Republicans.“To me, Trump’s crypto dealings seem pretty explicit,” Julian Zelizer, a Princeton University professor who focuses on political history, told the Guardian. “Policy decisions are being made regarding parts of the financial industry that are being done not to benefit the nation, but his own financial interests … It’s hard to imagine what he’s doing benefits the nation.”Rosenzweig stressed that “not only do Trump’s extravagant crypto ventures benefit him personally as his administration slashes crypto regulations and takes pro-crypto steps at the SEC; they also benefit his tech bro backers who will take full advantage of the end of regulatory enforcement”.In Congress, leading Democrats, including Richard Blumenthal, a senator from Connecticut, and Jamie Raskin, a representative from Maryland, in May announced separate inquiries by key panels in which they are ranking members into Trump’s crypto dealings, and attacked Trump for using his office to enrich himself via his crypto operations.“With his pay-for-access dinner, Trump put presidential access and influence on the auction block,” Blumenthal told the Guardian. “The scope and scale of Trump’s corruption is staggering – I’ll continue to demand answers.”Last month, too, the Democratic senator Jeff Merkley, from Oregon, and the Senate minority leader, Chuck Schumer, introduced the “end crypto corruption” bill, which 22 other Democrats have endorsed.“Trump’s crypto schemes are the Mount Everest of corruption,” Merkley told the Guardian. “We must ban Trump-style crypto corruption so all elected federal officials – including the president, vice-president and members of Congress – cannot profit from shady crypto practices,” which his bill would curtail.Some former congressional Republicans are also incensed by Trump’s blatant use of his presidency to peddle $Trump. “Nobody should be allowed to use their public positions while in office to enrich themselves,” said ex-Republican congressman Charlie Dent of Pennsylvania, who once chaired the House ethics panel. “A member of Congress would not be permitted to engage in the kind of memecoin activities which the president has been doing.”Trump and his family have dismissed critics concerns about the 22 May events and his other crypto ventures.Before the 22 May dinner, Trump’s press secretary, Karoline Leavitt, told reporters that the president would attend his crypto gala in his “personal time” and it was not a White House event, but declined to release names of the many anonymous and foreign attendees.To allay criticism, the Trump Organization said in January that Trump’s business interests, including his assets and investments, would be placed in a trust his children would manage and that the president wouldn’t be involved in decision-making or daily operations. Trump’s family also hired a lawyer as an ethics adviser.But those commitments have been dwarfed by Trump’s public embrace of his crypto ventures and strong deregulatory agenda. In March, for instance, Trump hosted the first-ever “crypto summit” at the White House, which drew a couple dozen industry bigwigs who heard Trump promise to end Biden’s “war on crypto”.Trump’s crypto critics worry that the president’s strong push for less industry regulation may create big problems: the crypto industry has been battered by some major scandals including ones involving North Korean hackers and has been plagued by concerns about industry’s lack of transparency and risks.For instance, a report last December by leading research firm Chainalysis found that North Korean hackers had stolen $1.34bn of cryptocurrency in 2024, a record total and double what they stole the year before.The report concluded that US and foreign analysts believe the stolen funds were diverted in North Korea to “finance its weapons of mass destruction and ballistic missile programs”.Other crypto fraud schemes in the US have spurred loud alarms.In an annual report last September, the FBI revealed that fraud related to crypto businesses soared in 2023 with Americans suffering $5.6bn in losses, a 45% jump from the previous year.Sam Bankman-Fried, who founded the now bankrupt FTX crypto exchange, was sentenced to 25 years in prison in March 2024 by a New York judge for bilking customers out of $8bn.Nonetheless, a justice department memo in April announced it was closing a national cryptocurrency enforcement team that was established in 2022, which had brought major crypto cases against North Korean hackers and other crypto criminals.The memo stressed that the justice department was not a “digital assets regulator” and tried to tar the Biden administration for a “reckless strategy of regulation by prosecution”. The memo stated that a pro-crypto Trump executive order in January spurred the justice department’s policy shift.Ex-prosecutors and ethics watchdogs worry increasingly that crypto scandals and conflicts of interest will worsen as the Trump administration moves fast to ease crypto oversight at the justice department, the SEC and other agencies.Some of WLF’s high-profile crypto deals have involved overseas crypto firms which have had recent regulatory and legal problems in the US, fueling new concerns, watchdogs and ex-prosecutors say.View image in fullscreenOne lucrative deal raised eyebrows when WLF was tapped to play a central role in a $2bn investment by Abu Dhabi financial fund MGX that is backed by the United Arab Emirates in the world’s largest crypto exchange, Binance.As part of the deal, the Abu Dhabi fund bought $2bn of a WLF stablecoin, dubbed USD1, to invest in Binance. Stablecoins are a popular type of cryptocurrency that are often pegged to the dollar.The WLF deal comes after Binance in 2023 pleaded guilty to violating US money-laundering laws and other violations and the justice department fined it a whopping $4bn.Furthermore, Binance’s ex-CEO and founder, Changpeng Zhao, pleaded guilty in the US to violating the Bank Secrecy Act and failing to maintain an effective anti-money-laundering program.Zhao, who still owns 90% of Binance, served a four-month jail term last year.WLF’s $2bn deal was announced at an Abu Dhabi crypto conference on 1 May that drew Eric Trump two weeks before Trump’s visit to the UAE capital, sparking concerns of foreign influence and ethics issues.Increasing WLF’s ties further with Binance, the crypto exchange announced on 22 May that it had begun listing the stablecoin for trading purposes. Binance got some good news at the end of May, too, when the SEC announced the dismissal of a civil lawsuit it filed in 2023 against the exchange for misleading investors about surveillance controls and trading irregularities.Paul Pelletier, a former acting chief of the justice department’s fraud section, noted that SEC moves back in February “to emasculate its crypto enforcement efforts sent crypto fraudsters a welcome mat of impunity”.He added: “The recent dismissal of the SEC’s lawsuit against Binance for mishandling customer funds, days after it began listing the Trump family’s cryptocurrency on its exchange, seemed to be the natural consequence of such enforcement laxity. Victims be damned.”Other agency deregulatory moves that favor crypto interests can boost Trump’s own enterprises and his allies, but pose potential risks for ordinary investors, say legal scholars.Columbia law professor Richard Briffault noted that as part of the Trump administration’s wide-ranging and risky crypto deregulatory agenda which can benefit Trump’s own crypto ventures, the Department of Labor in late May nixed a Biden-era “extreme care” warning about 401K plans investing in crypto.“[The labor department] has rescinded the red light from the Biden years for 401K retirement plans, which is another sign of the Trump administration’s embrace of crypto,” Briffault said.Briffault, an expert on government ethics, has told the Guardian more broadly that Trump’s crypto ventures and his 22 May memecoin bash are “unprecedented”.“I don’t think there’s been anything like this in American history,” he said. “Trump is marketing access to himself as a way to profit his memecoin. People are paying to meet Trump and he’s the regulator-in-chief. It’s doubly corrupt.”In late May, in a new crypto business twist, the Trump Media and Technology Group, the parent of Truth Social, said it had sealed a deal to raise $2.5bn to be used to buy bitcoin, creating a reserve of the cryptocurrency.Meanwhile, Trump’s stablecoin fortunes and those of many industry allies could get boosts soon from a Senate stablecoin bill, dubbed the “genius act”, that’s poised to pass the Senate on Tuesday but which critics have said loosens regulatory controls in dangerous ways unless amended with consumer protections and other safeguards.Senators Merkley and Elizabeth Warren, of Massachusetts, led unsuccessful efforts to amend the bill to thwart potential criminal abuses, protect consumers and prevent Trump from using his office to profit his crypto businesses.“The ‘genius act’ fails to prevent sanctions evasion and other illicit activity and lets big tech giants like Elon Musk’s X issue their own private money – all without the guardrails needed to keep Americans safe from scams, junk fees or another financial crash,” Warren told the Guardian.“Donald Trump has turned the presidency into a crypto cash machine,” Warren said. The Genius act, Warren stressed, should have “prohibited the President AND his family from profiting from any stablecoin project.”More broadly, Kedric Payne, the general counsel and ethics director at the Campaign Legal Center, said: “President Trump’s financial stakes in the crypto industry at the same time that he is determining how the government will regulate the industry is unprecedented in modern history. This is precisely the type of conflict of interest that ethics laws and norms are designed to stop.” More

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      in US Politics

      ‘This is the looting of America’: Trump and Co’s extraordinary conflicts of interest in his second term

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      The South Lawn of the White House had never seen anything like it. The president of the United States was posing for the world’s media against a backdrop of five different models of Tesla, peddling the electric vehicles with the alacrity of a salesman on commission.“I love the product, it’s beautiful,” Donald Trump said as he sank into the driver’s seat of a scarlet Model Y. With the Tesla CEO, Elon Musk, beside him, he went on to enlighten the American people that some Tesla models retail for as little as $299 a month, “which is pretty low”.That same day, within hours of the White House’s makeover into a Tesla showroom, the New York Times revealed that Musk had decided to invest $100m in political groups working for Trump. The massive injection of capital would enhance the nearly $300m Musk had already spent getting Trump elected.A week after the commercial on the South Lawn, on 19 March, Trump’s commerce secretary, the billionaire investment banker Howard Lutnick, went on Fox News and exhorted viewers to “buy Tesla”. “Who wouldn’t invest in Elon Musk’s stock?” he gushed. “He is probably the best person to bet on I’ve ever met.”At the time Lutnick made those remarks, he had yet to divest himself from Cantor Fitzgerald, the financial services firm he had led for 35 years. He was talking up stock in which he still had a vested interest – Cantor held $300m in Tesla shares, a stake that has since soared to $555m. And the commerce secretary was also bigging up his friend Musk, whose SpaceX and Starlink businesses are regulated by the commerce department that Lutnick now controlled.Eight days in March, three friendly billionaires, one of them the world’s most powerful person, another the world’s richest person. Doing what friends do: scratching each other’s backs. Even though Musk later fell out with Trump – in a shocking social media spat that roiled US politics – the imagery remains powerful and highly symbolic of Trump’s second term in the White House.View image in fullscreenBetween them they committed in those eight days acts that, had they occurred during any previous presidency – including Trump’s own first administration – would have provoked howls of protest concerning quid pro quo. Yet those eight days represent just a tiny slice of the graft and possible misconduct that is unfolding.The gift by the Qatari government of a $400m luxury jetliner to be repurposed as Air Force One has become the paradigm of the blitz of ethical dilemmas unleashed by Trump. The Pentagon last month accepted possession of the plane, which will be transferred to Trump’s presidential library once he leaves office.That Trump doggedly accepted the Qatari “palace in the sky” despite widespread condemnation speaks volumes about how indomitable he feels at this moment. He has shrugged aside the rebukes even of devoted Trump supporters, including the rightwing commentator Ben Shapiro, who bridled at the transfer’s grubby appearance, calling it “skeezy stuff”.It also shows Trump’s disdain for the US constitution, given the emoluments clause’s clear prohibition. Presidents are not allowed to accept high-value gifts from foreign governments without congressional consent.Yet the luxury jumbo jet is also just the thinnest edge of a very fat wedge. There has been so much more that has flown, if not under the radar, then partially obscured from sight amid the ethical blizzard of corruption and influence.There have been multimillion-dollar TV packages, real estate deals in Arab petrostates, dinners with the president going for $5m a pop, plum job offers for contributors to Trump’s inaugural fund, cryptocurrency ventures attracting lucre from secret foreign investors, “drill, baby, drill” enticements for oil and energy donations – the list goes on, and on … and on.View image in fullscreenTrump and his team of billionaires have led the US on a dizzying journey into the moral twilight that has left public sector watchdogs struggling to keep up. Which is precisely the intention, said Kathleen Clark, a government ethics lawyer and law professor at Washington University in Saint Louis.“They have mastered the technique of flooding the zone – doing so much so fast that they are overwhelming the ability of ethics groups and institutions to respond.”Chris Murphy, the Democratic US senator from Connecticut, has delivered two long speeches on the floor of his chamber in which he has itemised Trump and Co’s most controversial transactions. The record already stretches to scores of entries, chronicling what Murphy calls Trump’s “efforts to steal from the American people to enrich himself and his friends”.In an interview with the Guardian, the senator said that Trump’s was a “pay-for-play administration. That’s the underlying theme. You pay Donald Trump money, he does favors for you. That’s old-fashioned corruption.”Clark’s analysis is even more pointed. “People talk about ‘guardrails’ and ‘norms’ and ‘conflict of interest’, which is all very relevant,” she said. “But this is theft and destruction. This is the looting of America.”Trump signaled that he would be a president like no other at the start of his first term, when he became the only occupant of the Oval Office in modern times to refuse to divest his assets by putting them into a blind trust. Though presidents are not bound by conflict of interest laws applying to other elected officials, the norm has been for incumbents to set themselves high standards, the archetype being Jimmy Carter’s sale of his peanut farm.Trump, by contrast, put his assets in a trust that remained under the control of his family, with him as its sole beneficiary. He incurred numerous accusations of first-term conflicts of interest, as foreign officials from 20 countries descended on his hotels, while Secret Service agents in Trump’s security detail were made to pay premium rates, pouring at least $10m into his bank account.Such unprecedented disregard for time-honored ethical boundaries was shocking at the time. Now it looks merely quaint.“In the first Trump administration there were ethical lapses,” said Danielle Caputo, senior legal counsel for ethics at the Campaign Legal Center watchdog organization. “With this new administration, there’s not just a disregard for ethics rules, there’s contempt.”The conversion of political power into cash began even before Trump re-entered the White House. Weeks before the inauguration, Melania Trump sealed a $40m deal with Jeff Bezos for an Amazon Prime “behind-the-scenes” documentary on her life.Trump banked millions of dollars of his own by leveraging his status as president-elect to browbeat tech companies. He settled disputes over the freezing of his then Twitter and Facebook accounts in the wake of the 6 January 2021 insurrection at the US Capitol, prising $10m out of his friend Musk, and $25m from Meta.View image in fullscreenTrump used the months leading up to November’s election to test-run what, as Murphy noted, has become a theme of his second presidency – pay-to-play. He invited oil executives to Mar-a-Lago and, as the Washington Post revealed, offered them a “deal” in which they would donate $1bn to his campaign and in return he would tear up profit-limiting environmental regulations once he was back in the White House.He kept his promise: on day one of his new administration he discharged a barrage of pro-fossil fuel actions.Donors to his record-breaking $239m inaugural fund have also found Trump to be a grateful benefactor. Warren Stephens, an investment banker who gave $4m, was rewarded with the role of US ambassador to the UK; Jared Issacman, a billionaire pilot and close associate of Musk’s, gave $2m to the fund and was tapped to lead Nasa (he was abruptly yanked from the appointment last month after he was reportedly discovered to have been been donating to Democrats).The pattern has continued into 1600 Pennsylvania Avenue. Three months into the administration, Trump’s eldest son, Don Jr, launched an elite private members’ club named Executive Branch which commands a sign-in fee of a cool $500,000.Its attraction? Access to cabinet members and top Trump advisers.Not to be outdone by his own son, Trump himself has followed the same playbook at his Mar-a-Lago resort. In March, he began inviting business leaders to dine with him in group settings at $1m a seat.Prefer something more intimate? No problem. One-on-one meetings are also available, yours for $5m.For a seasoned observer such as Norman Eisen of the Brookings Institution, the sheer mass of problematic transactions puts the administration beyond the pale. “It’s over the line, unlawful, corrupt and unethical. It is un-American.”Eisen has experience dealing with knotty ethical issues. He was special counsel for ethics during Barack Obama’s first year in the White House.Obama notes in his autobiography, A Promised Land, that Eisen earned himself the title of Dr No, so strict was his approach to conflicts of interest. He would tell White House officials hoping to attend outside events that “if it sounds fun, you can’t go”.View image in fullscreenEisen told the Guardian that he prevented Obama from refinancing his family home in Chicago. “He was regulating the banking industry at the time, in the midst of the Great Recession.”The contrast between such almost pedantic strictures and the free-for-all in today’s White House astonishes and dismays Eisen. “If my somewhat tongue in cheek motto for Obama was ‘If it’s fun, you can’t do it,’ then the motto of the Trump White House seems to be ‘If you can make a buck, grab it.’”Exhibit one of such conduct, Eisen suggests, is the Trump family’s dive into the world of crypto. Shortly before the inauguration, they launched personal lines of meme coins, $Trump and $Melania.Then they issued a new cryptocurrency pegged to the dollar, known as a stablecoin. Taken together, Eisen believes that the two crypto ventures from the family of a sitting president amount to “one of the worst and most shocking conflicts of interest in our nation’s history”.Trump bragged on the campaign trail that he would turn the US into the “crypto capital of the planet”. He was more circumspect in front of his faithful followers about the big plans his sons were simultaneously developing to cash in on the currency.Since his election victory, Trump has used his presidential status and executive power to boost not only the general standing of crypto but also his personal stake within it. One of his early executive orders created a “strategic bitcoin reserve” designed to bolster the industry.At the same time, he eviscerated basic regulatory controls, halted federal crypto-related lawsuits and disbanded a taskforce trained to hunt down crypto criminals. “We have a president whose net worth now includes very substantial investments in cryptocurrency who at the same time is loosening regulations on the crypto industry,” Eisen said.The unrivalled magnetism of the US presidency helped Trump to blast his nascent meme coin, a currency almost entirely reliant on hype, into the stratosphere. It rocketed from $6.50 on inauguration day to a peak of $73.Then, when it predictably plummeted back down to below $10, he used his presidential allure brazenly once again to boost the coin. This time he announced a “private intimate dinner” for the top 220 $Trump investors, followed by an exclusive White House tour for the top 25.The ensuing scramble for a seat at the presidential dining table reportedly earned the Trump family $148m.The $Trump meme coin is an ethics regulator’s waking nightmare. There is little transparency around who is channelling money into it, and even less around the potentially nefarious motives of investors.The same might be said about the Trumps’ other big crypto venture, World Liberty Financial, which was launched last September by Trump’s sons. The president himself is listed by the company as its “chief crypto advocate”.skip past newsletter promotionafter newsletter promotionFederal law sets tight rules against foreign parties donating to presidential campaign or inaugural funds. Yet there is nothing to prevent outside interests with connections to foreign governments engaging with World Liberty and its new product, the USD1 stablecoin.One of its biggest backers is the Chinese-born crypto billionaire Justin Sun (best known for paying $6.2m at a New York art sale for a banana taped to a wall, then eating it). Before the inauguration, Sun pumped $75m into World Liberty. A few weeks later, the Securities and Exchange Commission paused an investigation into him for alleged securities fraud.View image in fullscreenUSD1 is currently valued at $2.3bn, the lion’s share of which comes from a $2bn transaction by MGX, a firm which happens to be chaired by the intelligence chief of the United Arab Emirates. That a company with ties to the government of an Arab petrostate should be able to make such a giant investment in a crypto venture generating profit for the sitting US president and his family goes against the grain of decades of robust accountability work countering conflicts of interest.“We’ve been pretty successful in this country rooting out corruption, or at least pushing it into the shadows,” Murphy, the US senator, told the Guardian. “Now it happens out in the open.”And it doesn’t stop there. Over the past few months Trump’s second son, Eric, has been frenetically traveling the globe in search of real estate deals, throwing to the winds the pledge Trump made in his first administration to eschew any foreign business transactions.In his second administration, Trump has made no such promise. All he has conceded this time, in a document released by his lawyers in January, is that the Trump Organization will avoid cutting business deals with foreign governments.Even that boundary has been pushed close to breaking point. Eric Trump sealed his first deal since Trump re-entered the White House in April.It involves the construction of the Trump International Golf Club & Villas outside the Qatari capital, Doha, as part of a $5bn luxury beachside resort. The company managing the development, Qatari Diar, is owned by the sovereign wealth fund of the Qatari government.Two weeks after the Trump Organization announced the deal, the president himself arrived in Doha as part of his three-country tour of the Middle East. He declared the trip a huge success, having drummed up trillions of dollars of business and investments for the US.The Guardian invited the White House to comment on complaints that the president has blurred his public duties with his family’s personal profit-making activities to a degree never before seen in the US. A White House spokesperson replied with a statement which they asked us to print in its entirety, so here goes:“There are no conflicts of interest. President Trump’s assets are in a trust managed by his children. It is shameful that the Guardian is ignoring the GOOD deals President Trump has secured for the American people, not for himself, to push a false narrative. President Trump only acts in the best interests of the American public – which is why they overwhelmingly re-elected him to this office, despite years of lies and false accusations against him and his businesses from the fake news media.”The argument that there is no conflict of interest because Trump’s business is handled by his children, specifically his sons – Don Jr leading on crypto and his social media empire, Eric on real estate – is an interesting one. Sons seem to be de rigueur, to the extent that members of Trump’s inner circle who lack them might feel the need to borrow one.View image in fullscreenTake other key figures in Trump’s cabinet, which is packed with so many banking and energy billionaires that it ranks as the richest presidential cabinet in modern history. Lutnick, the commerce secretary, who has a personal fortune of about $2.2bn, has been involved in various accusations of conflict of interest since he encouraged Fox News viewers to “buy Tesla”.At the start of this year Cantor Fitzgerald, the Wall Street firm Lutnick led for almost four decades, increased its investment in Strategy, the biggest corporate holder of bitcoin in the world. Cantor’s stake rose by several hundred million dollars to $1.3bn, research by the watchdog Accountable.US has found.At the same time, Lutnick was actively helping Trump create his strategic bitcoin reserve, a move that greatly strengthened the cryptocurrency.Last month, Lutnick divested himself of his Cantor stake, but he did so by transferring his ownership to his two sons. Cantor is now controlled by Brandon Lutnick, 27, and Kyle Lutnick, 28.Or take Robert F Kennedy Jr, the vaccine-skeptic health secretary. Under intense pressure from Democratic senators, he agreed to divest his 10% stake in any payout from an ongoing lawsuit in which he is engaged against Merck over its HPV vaccine, Gardasil.Government officials are not allowed under federal law to participate personally in official matters in which they have a financial interest. So what did Kennedy do? He transferred his stake in the case to one of his adult sons.And then there’s Mehmet Oz, the multimillionaire physician better known by his TV name, Dr Oz, whom Trump put in charge of Medicare and Medicaid. As the Washington Post has reported, Oz co-founded a health benefits company, ZorroRX, that helps hospitals save on prescription drugs.This would have been an indisputable conflict of interest, because in his job as head of the Centers for Medicare and Medicaid Services, Oz wields huge sway over hospital drug policies, and thus ZorroRX profits. Since taking up the position Oz, whose wealth is put at up to $300m, has divested himself of some of his investment portfolio and is no longer mentioned on ZorroRX’s website.View image in fullscreenHis fellow co-founder of ZorroRX, however, is still listed as the firm’s head of medical affairs. That’s his son, Oliver Oz.Under federal conflict of interest law, there is no prohibition on adult children managing the interests of parents who hold public office. Yet the spirit of the law does force us to reflect on why so many Trump administration leaders are so fond of handing sensitive money-making portfolios to their sons.“By giving over to your son, you are immediately raising questions about how separate you are going to be from the success of this business,” said Caputo of the Campaign Legal Center. “Will you be focused on what’s best for the public, or will you be guided in your decision-making by what would most benefit your family?”In the last analysis, what matters most perhaps about the financial dealings of the Trump administration is what impact they are having on the American people. In particular, what is it doing to the 77 million voters who put their trust in Trump and sent him back to the Oval Office?Trump returned to the White House partly on his promise to working-class Americans that he would “drain the swamp”, liberating Washington from the bloodsucking of special interests. Yet a review by the Campaign Legal Center found that Trump nominated at least 21 former lobbyists to top positions in his new administration, many of whom are now regulating the very industries on whose behalf they recently advocated.Eight of them, the Campaign Legal Center concluded, would have been banned or restricted in their roles under all previous modern presidencies, including Trump’s own first administration.They include Pam Bondi, the US attorney general. She approved the gift of the Qatari luxury jetliner as “legally permissible”, having herself worked as a lobbyist for Qatar.Trump’s other great pledge was that he would put the wellbeing of “forgotten” working people before that of the vested elites. His appeal was pitched at the millions of rural and working-class Americans who have languished from mounting income inequality, the decline of manufacturing jobs in the globalised economy, and what he claimed was the negative effects of millions of undocumented immigrants.Evan Feinman has witnessed personally and up close how this promise has fared in Trump 2.0. For the past three years, Feinman was busy leading a $42.5bn program created by Congress to bring affordable high-speed internet to every American home and business that needed it.The project was vast and ambitious, on a par with the rural electrification drive that transformed the heartlands of America in the 1930s. Located within the US commerce department, its success is critical to the future prosperity of millions of Americans, especially those in hard-bitten rural areas of the sort that solidly backed Trump in the last election.Studies have shown that giving families access to the internet improves the grades of school students, increases college enrolment and reduces the likelihood of households falling into debt. It also helps older Americans stay in their own homes and avoid residential care.By the inauguration, the broadband project was well under way, with several states only weeks away from breaking ground and laying the cables. Then Lutnick took over the reins of the commerce department.Within a days of his confirmation, Lutnick met with senior managers and informed them he wanted to scale back on the use of fibre optic and switch to satellite. According to an account of the meeting that was given to Feinman by someone present, Lutnick specifically inquired after his friend Musk, the CEO of Starlink, which provides internet services through low-Earth orbit satellites.View image in fullscreenDays after that, Feinman was told he was being let go. His contract was up for renewal, and it wasn’t being extended.“I was dismayed,” Feinman told the Guardian, insisting that his distress was not so much related to his own dismissal but out of concern for the Americans who would be harmed by the shift. By his reckoning, satellite internet would not only be slower than broadband, it would also be much more expensive – costing users an extra $840 a year in fees.“For Americans in rural locations, that’s going to really hurt. Many of the president’s strongest supporters – up to hundreds of thousands of families who voted for Trump – are going to see slower, more expensive internet services, and all to the benefit of the wealthiest man on earth.”According to some estimates, Musk’s Starlink stands to make $10bn to $20bn should the shift from broadband to satellite internet go ahead.The episode has left Feinman “deeply saddened. I see my nation harming itself in ways that are inexplicable and entirely avoidable.”He fears for rural Americans who will pay the price. “These are communities who put their trust in this administration. They are going to find that their trust has not been honored, and it will be to their significant future detriment.” More

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      ‘A bit of a clown’: a look at Congressman George Santos’s endless fabrications

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      In a way, George Santos is one of the great success stories of American politics.The New York congressman is not responsible for exceptional legislative achievements. His brief tenure in Congress will not be held up as a success story for students of political history.Santos’s accomplishment has instead been to win election by weaving a staggering, barely believable web of lies, deception and deceit that is surely unmatched in the modern age.That wave of fabrication helped Santos win election in November 2022. But a year later, the 35-year-old has been charged with 23 federal crimes, and while he has managed to cling on to his seat in the House of Representatives, he could find himself booted out of there when Congress returns to DC next week.The list of Santos’s lies bears digging into.While he was running for Congress, Santos lied about almost everything that had ever happened to him. Sometimes it was to embellish his résumé and make himself appear more electable, but frequently, and fascinatingly, he lied for no reason at all, about things of zero consequence to his political career.Santos claimed he was privately educated at an elite New York City high school. He wasn’t. He said he went to Baruch College, where – according to Santos – he graduated in the top 1% of his class. Baruch, based in Manhattan, said it has no record of him going there, and Santos later confessed he “didn’t graduate from any institution of higher learning”.While running for election, he said his mother was working in the south tower of the World Trade Center during the September 11 terrorist attacks in New York. Her immigration history shows that she wasn’t even in the country.Santos said he was Jewish and his grandparents escaped the Holocaust. That wasn’t true. He claimed he owned 13 properties. That was also a lie; in fact, in 2022, he was living at his sister’s home.He said he worked for Goldman Sachs and Citigroup, which he didn’t, and said he ran a pet charity, only for the New York Times to discover that a) it wasn’t a registered charity and b) there were serious questions about how the charity had spent the money it raised.Some of Santos’s lies were so banal it is unclear what the benefit was in telling them. Santos claimed he had been a “star” on Baruch’s volleyball team. (He hadn’t, obviously, but what was the point of making it up? Is the college sports vote that crucial in Nassau county?)Santos also told a roommate that he had worked as a model, and said he produced a Spider-Man musical on Broadway. Neither of those things happened.But, over a period of two years, the lies worked.Santos was an unknown when he ran against Thomas Suozzi, the Democratic incumbent in New York’s third district, in 2020. After a stronger-than-expected showing, Santos ran again in 2022. Suozzi, who had been in office for six years, had stepped down, and Santos defeated Democratic nominee Robert Zimmerman by seven points, winning a seat to represent the majority of Nassau county, just east of New York City.“I ran, I lost and from defeat I grabbed the power and harnessed the energy to run again,” Santos said at a Republican Jewish Coalition event, 11 days after his win last year.“Many said I couldn’t win. Pundits across the nation, insiders, DC people [said]: ‘George Santos can’t win, let’s not pay attention to him.’“Well baby, you got that wrong.”Santos might now be wishing people had paid even less attention to him.After the New York Times reported on Santos’s litany of fabrications in December 2022, the web of lies began to fall apart. More seriously for Santos, alleged crimes were soon catching up with him, too.In October federal prosecutors charged Santos with 10 new crimes, including an allegation that he stole donors’ identities and used their credit cards without their knowledge. Santos had previously been charged with applying for and receiving unemployment benefits, even though he had a job, and misusing campaign contributions, and the total number of crimes Santos is now charged with is 23.Despite mounting evidence, the House has twice voted against expelling him. But on 17 November, when the ethics committee issued a damning report on Santos, the tide seemingly began to turn.The Republican-led committee found “substantial evidence” that Santos had used campaign funds for personal purposes, with the report detailing extravagant – and possibly illegal – spending of campaign money.skip past newsletter promotionafter newsletter promotionSantos allegedly spent almost $3,000 of campaign money on Botox treatments, while the committee also found that $4,127.80 had been spent at the luxury brand Hermès.Other expenditures by Santos allegedly include payments to OnlyFans, an online platform known for sexual content, and purchases at Sephora, a cosmetics store.Given what we now know about Santos, it’s barely believable that he got this far. Political campaigns normally conduct extensive opposition research on candidates, but Jay Jacobs, chair of the Nassau County Democrats, said that Santos “wasn’t considered a serious candidate by Republicans or Democrats”, and so slipped through the cracks.“He had run before, he was looked upon as kind of a joke, so nobody took it seriously,” Jacobs said.“Had they taken him seriously, had they felt that he had the slightest chance, I think the [Democratic] congressional campaign committee [DCCC], which does the research on this, would have dug a lot deeper.The DCCC, Jacobs said, has “435 contests across the country” that it needs to monitor. It has to choose where best to invest money and time in opposition research and background checking.“With George Santos being – and I’m sorry, but this is how I’d refer to him – a bit of a clown, they just didn’t give it that kind of attention,” Jacobs said.There was arguably a failure among the media too. The New York Times did great work in breaking the extraordinary story on Santos’s deceit, but it only did so on 19 December 2022 – more than a month after Santos had been voted into office. Santos slipped by other New York-focused newspapers and TV news channels, and slid into office.For almost a year Republicans, who have a slim majority in the House, have been willing to hold their nose regarding Santos. The damning ethics committee report, however, may prove the final nail in the coffin.After the report was published Santos said he would not run for re-election, but he is expected to face a third expulsion vote, likely to come next week. Two-thirds of the House would need to vote to remove Santos, and reports suggest that there are enough members ready to oust him, bringing an end to one of the great political con jobs of our age.“We did it! #NY03 has spoken!” Santos declared after his victory in 2022.“I promised one thing throughout this entire campaign: to be your champion in DC. Thank you for this opportunity to be your voice!”Instead, Santos has spent almost the entirety of his time in DC fending off accusations of criminal behavior and apologizing for a vast array of deceptions and mistruths.In retrospect, that promise to champion the residents of New York’s third congressional district was just another lie, in a political career defined by dishonesty. More

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      Democrats plan to subpoena Leonard Leo over perks to supreme court justices

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      Senate Democrats plan to subpoena Republican mega-donor Harlan Crow and conservative activist Leonard Leo to quiz them about their roles in organizing and paying for lavish perks for justices on the hard-right wing of the US supreme court.The announcement by Democrats on the Senate judiciary committee came on Monday amid a storm of controversy that has blown up in recent months about conservative justices Clarence Thomas and Samuel Alito not only accepting but also not disclosing free travel and other luxury favors provided or facilitated by influential public figures.The supreme court is now being pressed to adopt an ethics code – a move that has been publicly endorsed by three of the nine justices amid the rows about ethical controversies, including the risks of outside influence corrupting the court.The committee could act as soon as next week to authorize Illinois senator Dick Durbin, the panel’s chairman, to issue subpoenas to Crow, Leo and another wealthy donor, Robin Arkley II.Crow has been identified as a benefactor of associate justice Clarence Thomas for more than two decades, paying for nearly annual vacations, purchasing from Thomas and others the Georgia home in which the justice’s mother still lives, and helping pay for the private schooling for a relative.Leo, an executive of the Federalist Society, the powerful Washington-based conservative and libertarian advocacy group, worked with former US president Donald Trump to move the court and the rest of the federal judiciary to the right by nominating ultra-conservative judges.And Arkley helped arrange and pay for a private jet trip to Alaska for Justice Alito in 2008.Arkley and Leo have refused to cooperate with the committee’s investigation of the justices’ largely undisclosed private travel, the committee said.Crow “offered to produce certain limited information that fell well short of what the Committee needs and to which it is entitled”, Durbin and Senator Sheldon Whitehouse of Rhode Island, said in a joint statement.In a statement after Durbin’s announcement, Crow’s office called the subpoena politically motivated and said Crow had offered information to the committee.“It’s clear this is nothing more than a stunt aimed at undermining a sitting supreme court justice for ideological and political purposes,” the statement said.Leo voiced a similar objection. “I will not bow to the vile and disgusting liberal McCarthyism that seeks to destroy the supreme court simply because it follows the constitution rather than their political agenda,” Leo said in a statement.In July, the Senate judiciary panel approved legislation that would force the justices to abide by stronger ethics standards. The bill would set ethics rules for the court and a process to enforce them, including new standards for transparency around recusals, gifts and potential conflicts of interest.skip past newsletter promotionafter newsletter promotionThe bill has little chance of passage in the closely divided Senate. Republicans have united against it, saying it could “destroy” the court. And Republicans control the House of Representatives, further providing a block on Democratic led legislation.Apart from the judiciary committee, Democrats on the Senate finance committee issued the results of their separate probe of the $267,000 loan that enabled Thomas to buy a luxury, 40-ft motorcoach in 1999. The committee found that the loan, made by longtime friend Anthony Welters, appears to have been largely if not totally forgiven after Thomas made payments of interest, only, over nine years.Durbin and Whitehouse put out a statement which said: “The Supreme Court is in an ethical crisis of its own making. Thanks to investigative reporting, we now know that for decades, some justices have been joining billionaires with business before the Court on their private planes and yachts or receiving gifts … the justices have enabled their wealthy benefactors and other individuals … to gain private access to the justices while preventing public scrutiny of this conduct.”“Due to Crow, Leo, and Arkley’s intransigence, the committee is now forced to seek compulsory process to obtain the information they hold … Durbin will be asking the committee to grant him authorization to issue subpoenas to these individuals. The chief justice could fix this problem today and adopt a binding code of conduct. As long as he refuses to act, the judiciary committee will.”
      The Associated Press contributed reporting More

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      Chief justice John Roberts urged to testify on ethics scandals for ‘good of democracy’

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      The US chief justice should testify before Congress about ethics scandals besetting his supreme court “for the good of democracy”, a leading Californian progressive said.The justices are “so cloistered, they’re so out of touch”, the congressman Ro Khanna told MSNBC on Sunday. “They don’t have a sense of what life is like, so my plea to him would be for the good of democracy come testify. What are you afraid of?”The Democratic-controlled Senate judiciary committee has requested that Roberts testify about reports regarding relations between justices Clarence Thomas, Samuel Alito and Neil Gorsuch and rightwing donors or, in Gorsuch’s case, the chief of a prominent law firm involved in a property purchase.Thomas’s extensive gifts from the billionaire donor Harlan Crow have been exhaustively reported by ProPublica, which also reported an Alaska fishing trip Alito took with the billionaire Paul Singer.The justices failed to disclose such links. All deny wrongdoing. Singer, Crow and the law firm executive also deny wrongdoing and say they and the justices did not discuss politics or business before the court.Supreme court justices are nominally subject to the same ethics rules as other federal judges but in practice govern themselves.Questions have also been raised about the career of Roberts’ wife, Jane Sullivan Roberts, who, according to the New York Times, “has made millions recruiting lawyers to prominent law firms, some of which have business before the court”.In April, turning down the invitation to testify before the Senate judiciary committee, John Roberts cited concerns about the separation of powers.Amid progressive anger over decisions on abortion, affirmative action, student debt relief and anti-LGBTQ+ discrimination, calls for reform to a court controlled 6-3 by conservatives after Donald Trump appointed three justices in four years have grown ever louder.Public trust in the court is at all-time lows.Speaking to the former Biden White House press secretary Jen Psaki, Khanna told MSNBC: “The court is moving us backwards and young people in particular are outraged that the court is taking away the relief of student loans. They’re moving to a time where colleges used to be just for the wealthy and largely white, so I do think this can energise young people, in particular working-class voters.”Calls for structural reform seem to have as little chance of success as calls for Thomas to resign or be impeached – calls perhaps likely to increase after the publication by the Times on Sunday of an investigation of the justice’s membership of the Horatio Alger Association of Distinguished Americans, “a cluster of extraordinarily wealthy, largely conservative members who lionised him and all that he had achieved”.Republicans control the House and trail Democrats by two seats in the Senate, all but ensuring a block on any such move. Furthermore, Joe Biden is against major reform, such as changing the size of the court or imposing term limits.Khanna said: “Voters know that the court is just out of touch with their lives, that the court is taking away their rights, taking away women’s rights to control their own body, taking away students’ relief in terms of the student loans. The president forgave the loans. The supreme court took that money away.skip past newsletter promotionafter newsletter promotion“[Voters] see these justices, they see all the ethical conflicts, and they’re saying, ‘Enough with it. Let’s have a clean slate and term limits.’“I’ve said everything should be on the table, but … it’s not an easy thing to do. Often people see that it is polarising or partisan. I guess term limits is an easier first step … and a judicial code of conduct of ethics.”The Senate judiciary chair, Dick Durbin, has promised a vote on ethics reform. Any measure would be highly unlikely to pass the Republican House.Khanna said: “Even Republicans in Congress, if we go out and have someone buy us lunch, the vast majority of us would have to disclose it and have all these ethics rules. I’m just flabbergasted that the supreme court doesn’t have any of those. The limits are so low for members of Congress, anybody who works in the federal government, and this is just a different set of rules.”Khanna did not support an attempt to force the chief justice to testify, via a subpoena, a move called for by another prominent House progressive, Alexandria Ocasio-Cortez of New York.“I would support hearings,” he said. “I think that the chief justice should testify.“Look, I’ve met the chief justice. I met him a couple of years ago and he said he cared about the legitimacy of the court. The legitimacy of democracy. Well, if he cares about the legitimacy of democracy, he should come testify.” More

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      Alito’s wrongdoing makes a supreme court ethics overhaul an imperative | Margaret Sullivan

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      The US supreme court is an extraordinarily exclusive club. The nine members are unelected and employed for life, or until they step down voluntarily. And, as in many exclusive clubs, the membership likes to keep things just as they have always been.Tradition has its merits, of course, but recent events clearly show that change is urgently needed.The court, shockingly, is not bound by a code of ethics as lower courts are. Federal laws about financial disclosures, for example, do apply to them, but there is no clear method of enforcement.The remedy, a bad one, apparently is that these justices are so wise that they will police themselves. Clearly, that doesn’t happen, or not effectively enough.More proof came this week when the excellent investigative news outlet ProPublica revealed that, in 2008, Justice Samuel Alito took a trip to Alaska on the private jet of hedge fund manager and Republican donor Paul Singer – a trip that likely would have cost more than $100,000 if arranged independently.But Alito never disclosed the trip. What’s worse – and perhaps entirely predictable – Singer’s businesses were involved in several supreme court cases over the next few years, and Alito didn’t recuse himself.He’s being blasted for it in some corners, and so is the court. Rightly so.“The billionaire who paid for private jet rides and luxury fishing trips for Samuel Alito also bankrolled the groups funding the plaintiffs in the student loan relief case,” complained Sawyer Hackett, a senior adviser to Julián Castro, the former San Antonio mayor and Obama cabinet member. (Two lawsuits have challenged the legality of President Biden’s $400bn student loan forgiveness plan; the supreme court is expected to rule on it within weeks.)And Hackett asked the obvious question, given that reality: “How can this court be considered legitimate?”The answer is that it can’t be, until the court gets its house in order. The Alito revelations come on top of recent ProPublica reporting about Justice Clarence Thomas’s ethical lapses – specifically his acceptance of financial favors from Texas billionaire Harlan Crow, another Republican donor. Crow made tuition payments for a member of Thomas’s family, paid for lavish trips and participated in a dubious real estate deal involving the home that the justice’s mother lived in.Sadly, these justices aren’t the only ones behaving badly: the Wall Street Journal’s editorial page agreed to publish Alito’s defensive statement, in an op-ed, about the ProPublica revelations before the investigative article had even run. (Alito wouldn’t comment on ProPublica’s reporting when he was given the opportunity before publication.) Call it a “pre-buttal”, and one that lacked even a basic level of journalistic solidarity on the part of the Journal’s opinion side. Thought experiment: what if, say, the Washington Post’s editorial board had allowed Elizabeth Holmes to pre-empt John Carreyrou’s investigation for the Wall Street Journal that exposed the fraudulent practices of her blood-testing company, Theranos (her crimes sent her to federal prison last month).What’s to be done about these persistent judicial ethics lapses?“When a potential conflict arises, the sole arbiter of whether a justice should step away from a case is the justice him or herself,” ProPublica noted.skip past newsletter promotionafter newsletter promotionThat’s not nearly good enough.For years, good-government groups and thinktanks have been advocating for change.In 2019, the well-respected Brennan Center for Justice, in an extensive report, urged the court to voluntarily adopt a formal ethics code, rather than wait for Congress to impose one. It also called for the court to explain justices’ reasons for recusal, in order to provide more transparency, and to strengthen its informal – and all-too-weak – practices governing gifts and financial disclosures.All good and necessary ideas. And it would be ideal for the court to get to work on all of that.But since there seems little appetite to do so, it’s left up to Congress to do it for them. Checks, balances and all of that.Today’s supreme court is extremely powerful, increasingly political and decreasingly trusted. It’s never been more obvious that ethics reform needs to happen now.
      Margaret Sullivan is a Guardian US columnist writing on media, politics and culture More

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      in World Politics

      The Russia-Ukraine War Shows History Did Not End, Ethics Did

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