Federalist Society Engage Journal: Redressing Politicized Spending

Redressing Politicized Spending

Engage Volume 15, Issue 1 February 2014

March 25, 2014

Daniel Z. Epstein

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In 2007, the Bush White House sent senior political officials to brief political appointees in federal agencies on how they could help steer federal funds to favor Republican congressional candidates. In 2010, the Obama White House had direct involvement in shaping the U.S. Department of Energy (DOE) Loan Program Office’s loan and loan guarantee funding decisions.
These are not isolated anecdotes. They characterize a body of empirical evidence demonstrating that federal agencies’ discretionary spending and other decisions are susceptible to capture by the political interests of Congress and especially the President. Politicized spending undermines transparency and the “level playing field” needed to maintain public trust and confidence in government. Furthermore, large-scale discretionary spending without an effective independent check on the government’s ability to steer discretionary funds to favored firms, organizations, and individuals corrodes the foundations of any system based on principles of limited and accountable government.

Washington Free Beacon: Report: White House Review Hindering FOIA Releases

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FOIA documents obtained by Cause of Action show White House reviews delayed responses to investigative journalists, watchdog groups, and even congressional investigations.

 

One White House review delayed response to a FOIA request by a Los Angeles Times reporter by at least two years.

 

The study, based on records obtained from four federal agencies, found at least 18 FOIA requests were sent to the White House for review between 2012 and 2013.

The Michael Savage Show: Discussing White House Equities

On March 20, 2014, The Michael Savage Show discussed our Sunshine Week Report. Click here to read the report.

Law360: LabMD Slams FTC’s ‘Abuse Of Power’ In Data Breach Probe

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In February, the cancer diagnosis firm dropped its suit in the District of Columbia challenging the FTC’s authority to regulate data security following an unexpected jurisdictional ruling by the Eleventh Circuit. LabMD voluntarily dismissed without prejudice itscomplaint claiming that the agency lacked the authority to bring an administrative action accusing the company of failing to implement reasonable and appropriate measures to prevent unauthorized access to consumers’ personal health data.

 

But now, government accountability organization Cause of Action has refiled the lawsuit on behalf of LabMD, saying the company’s data security practices are regulated by the U.S.Department of Health and Human Services and that HHS has never indicated that LabMD violated any of its patient information security requirements.

 

“By continuing to drag the administrative proceedings along, the FTC continues to act without the authority granted to it by Congress — authority they admitted only last month they do not have,” CoA Executive Director Dan Epstein said in a statement on Thursday. “The FTC continues to exemplify the dangers of unbridled federal agency overreach into areas in which they have no authority. The merits of our complaint have yet to be evaluated by a court, which is why we are bringing them before the District Court now.”

Washington Examiner: ‘Most transparent’ White House ever rewrote the FOIA to suppress politically sensitive docs

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The FOIA requires federal agencies to respond within 20 days of receiving a request, but the White House equities exception can make it impossible for an agency to meet that deadline.

 

In one case cited by Cause of Action, the response to a request from a Los Angeles Times reporter to the Department of the Interior for “communications between the White House and high-ranking Interior officials on various politically sensitive topics” was delayed at least two years by the equities review.

 

“Cause of Action is still waiting for documents from 16 federal agencies, with the Department of Treasury having the longest pending request of 202 business days.

 

“The Department of Energy is a close second at 169 business days. The requests to the Department of Defense and Department of Health and Human Services have been pending for 138 business days,” the report said.

US News & World Report: Where’s the Outrage?

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To the casual observer it looks like there is some there there. The COA report makes what many will find a convincing case that the over-reporting in 2010 was not an isolated incident but was, in fact common practice. Which means that, even without the backing of the Justice Department the watchdog group is going ahead with its law suit because, Cause of Action’s Executive Director Dan Epstein said, “the American taxpayers deserve accountability.”

 

“The reputations of political insiders cannot be more important than the integrity of federal programs and the protection of taxpayer funds,” Epstein said. “When the federal government – including departmental inspectors generals – cannot be counted on to discourage fraud, citizen watchdog groups like ours must intervene.”

Washington Free Beacon: Federal Support for Anti-Tobacco Advocacy Raises Legal Questions

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The solicitation mentioned “community smoke-free policies” and tax increases on tobacco sales as worthwhile legislative objectives for subgrantees.

 

Dan Epstein, executive director of the government watchdog group Cause of Action, said his group investigated similar allegations of federally funded lobbying efforts financed by Obamacare and the 2009 stimulus bill.

 

COA dug into Centers for Disease Control and Prevention (CDC) grants through its stimulus-funded Communities Putting Prevention to Work program.

 

Ostensibly a “preventative health” project, CPPW “laundered money through so-called stealth lobbying coalitions, formed to skirt prohibitions on lobbying by non-profits, in order to promote local laws banning otherwise legal consumer products such as sodas, e-cigarettes, and fast food,” COA wrote in a report on the program.

 

“We already uncovered multiple organizations around the country that illegally lobbied with federal taxpayer dollars under the Communities Putting Prevention to Work program,” Epstein wrote in an email.

 

“We also know that entities in Missouri that received CPPW money have been offered federal funds by MFH efforts, so it is no surprise that the unchecked grant money going to MFH could now be used to violate the law again,” he said.