Congress
Capitol agenda: Powell probe stiffens GOP spines
The Justice Department’s move to investigate Federal Reserve Chair Jerome Powell is shaping up to be one of the Trump administration’s most unpopular actions yet among Capitol Hill Republicans.
— Republicans recoil: The DOJ probe into Powell’s June hearing testimony is causing heartburn in the Senate, which controls the fate of his successor. After Sen. Thom Tillis (R-N.C.) threatened Sunday to vote against any nominee until the criminal investigation is resolved, other Senate Banking Republicans like Sens. Kevin Cramer (N.D.) and Dave McCormick (Pa.) joined in to signal their disapproval Monday.
Cramer is no fan of Powell and called him a “bad” Fed chair. But he added, “I do not believe, however, that he is a criminal.”
Few Republicans are openly cheering the decision. Rep. Anna Paulina Luna (R-Fla.), who referred perjury allegations against Powell to the DOJ last summer, is the exception. Even other hard-liners who have long wanted to see Powell gone declined to comment on whether the probe was justified.
“That’s way outside my jurisdiction,” House Freedom Caucus Chair Andy Harris (R-Md.) told Blue Light News when asked if the probe was warranted.
— A notable silence: Despite the critiques from members of his committee, Banking Chair Tim Scott has stayed mum. It’s not unusual for Scott, who declines hallway interviews, to stay quiet. But it’s conspicuous as others in the GOP speak up on behalf of the Fed’s independence.
Scott’s silence contrasts with public statements from the likes of Senate Majority Leader John Thune, who called for the probe to be “resolved quickly,” and House Financial Services Chair French Hill (R-Ark.), who said it “creates an unnecessary distraction” that “could undermine this and future Administrations’ ability to make sound monetary policy decisions.”
Asked if the investigation would make it hard to confirm the next Fed leader, Thune acknowledged “it could make it challenging.”
— Powell’s staying power: At this point, it seems almost certain Powell will stay on until his term as chair ends in May. Many expect him to leave after that, forgoing his longer term as a rank-and-file Fed governor.
But that probability has dropped amid the DOJ’s probe, and Powell could stick around. And the likelihood that he might ever be prosecuted for his June testimony is remote.
“The kind of things we’re talking about here is whether Powell lied when he said there were ‘no rooftop gardens’ when there will in fact be ‘vegetated roof spaces,’” Victoria Guida writes in her latest column. “Of course, the investigation might also cover the cost overruns themselves … but mismanaging a project is not in and of itself a crime.”
What else we’re watching:
— House math: Speaker Mike Johnson’s margins in the House could pose a problem for party-line action this week, including passing the rule teeing up a final vote on the bundled State-Foreign Operations and Financial Services funding bills.
The recent passing of Rep. Doug LaMalfa (R-Calif.) brought the balance of the House to 218-213. But with Rep. Jim Baird (R-Ind.) recovering from a car accident and Rep. Derrick Van Orden (R-Wis.) expected to be out indefinitely as his wife undergoes surgery, Johnson is facing some harrowing math.
— Dem joins GOP stock trading bill: The new GOP-leadership-backed bill to ban lawmaker stock buying has its first Democratic co-sponsor, New York Rep. Josh Riley. The bill, drafted by House Administration Chair Bryan Steil (R-Wis.), now has 71 GOP co-sponsors.
The legislation is on track for a Wednesday morning markup. Senior Democrats who oppose the bill — which allows lawmakers to hold onto the stocks they already own — say they’ll try to force changes.
— Health care talks shape up: The bipartisan group of senators working to craft an agreement to revive the expired Affordable Care Act subsidies is honing in on a potential compromise around abortion language. According to a Senate GOP aide briefed on the group’s discussions and another person granted anonymity to describe the private talks, the lawmakers are considering increasing penalties and audits for insurance plans to ensure funds for abortion are properly segregated from funds for nonabortion health services.
Meredith Lee Hill, Jordain Carney and Benjamin Guggenheim contributed to this report.
Sen. Thom Tillis renewed his call for President Donald Trump to fire Defense Secretary Pete Hegseth on Wednesday, following the resignation earlier this week of Army Secretary Dan Driscoll.
“I have never witnessed more inept management of the brave men and women who serve our country,” the outgoing two-term North Carolina Republican wrote on X. “He is intimidated by competence and retreats to ginning up culture wars instead of soberly attending to the vital work of our national defense and the health and well-being of our fighting force.”
Driscoll, whose long-rumored resignation became official this week, had clashed with Hegseth over the Defense secretary’s reluctance to modernize the Army and his firings of dozens of senior officers. Hegseth has focused more on cultural issues — including grooming and fitness standards — within the department.
“If we had a @SecWar who maintained the same priorities and forward-thinking, he would be fighting to retain talented leaders like Dan and the many flag officers he has forced into retirement,” Tillis charged. “Instead, he is creating a leadership void at the top of our military ranks.”
The White House and Pentagon did not respond to requests for comment on Tillis’ post.
Tillis, who is not running for reelection in November, has openly clashed with Hegseth since Trump tapped the former Fox News host to lead the Pentagon in 2024.
In May, Tillis told POLITICO he believed Hegseth had misinformed Trump on the dynamics of a war in Iran. Firing Hegseth, he said, was on “a Christmas wish list.” In a book set to be released next month, Tillis branded Hegseth — along with a handful of other White House officials — as “MAGATS” and accused them of “not looking around corners and taking care of this president.”
It hasn’t earned him friends in the administration.
“The media said how brave he was to take me on, but he wasn’t brave, he was just the opposite – HE WAS A QUITTER!” Trump wrote on Truth Social in May. “Now he can have all the fun he wants for a few months, with some of his RINO friends, screwing the Republican Party. In the end it will only get bigger, and better, and stronger, than ever before!”
Despite a stern message from party leaders, a panel of House Democrats did not settle on any particular consequences for the pair of lawmakers who crossed party lines Tuesday to advance an otherwise troubled slate of Republican-led bills.
Minority Leader Hakeem Jeffries and fellow leaders said the matter would be reviewed by the Democratic Committee on Caucus Rules, which convened Wednesday morning for a prescheduled listening session.
Attendees discussed possible changes to the rules that govern House Democrats’ conduct for next term. Rep. Mike Levin (D-Calif.), the panel’s chair, suggested to reporters that discussion included what should happen if members vote with Republicans on procedural measures like the one Reps. Jared Golden (D-Maine) and Marie Gluesenkamp Perez (D-Wash.) supported Tuesday.
“There’s been a variety of suggestions to change our rules, not just regarding the last couple days, but several suggestions that have been percolating for some time,” Levin said, while adding that any changes would happen only “in the next couple of months.”
The lack of urgency stands in contrast to the stern statement Jeffries and fellow leaders made Tuesday about the rogue members’ “breach of trust” — not to mention the rage some rank-and-file House Democrats are expressing. Some have floated removing the pair from their committees — particularly Gluesenkamp Perez’ seat on the exclusive Appropriations panel.
“Somebody else who is willing to think about other people needs to be on that seat, that exclusive committee,” said one House Democrat granted anonymity to speak candidly.
Jeffries, who was not present at the meeting, also seemed to have a speedier timeline for responding to Gluesenkamp Perez and Golden. He told reporters after the meeting wrapped that he was waiting on feedback from Levin and that the caucus would have conversations “amongst the family about the best way to move forward.”
Asked about his timeline for action against the pair, Jeffries said, “Sooner rather than later.”
Speaker Mike Johnson said he has no plans to campaign with embattled Rep. Max Miller — or visit his home state of Ohio at all — before the midterms.
“I have no plans to go to Ohio between now and the election,” Johnson told reporters Wednesday. “I’ve said everything I can say about the situation. It’s up to the people in his district.”
Miller is running in what had been considered a safe red district before allegations of abuse from his ex-wife Emily Moreno, the daughter of GOP Ohio Sen. Bernie Moreno, exploded into public view in recent weeks. Ohio’s two GOP senators have called on Miller to resign.
Miller has denied any wrongdoing and has vowed to continue his reelection campaign. A spokesperson for Miller declined to comment.
Johnson said Monday that he supports Miller’s reelection bid and called him a “great member.” The House Ethics Committee is investigating the allegations, which include physical assaults on his wife and daughter.
“He’s running a good campaign,” Johnson said Wednesday. “He has a nasty divorce. He’s, of course, vehemently denied the claims made. And as I’ve said many times, we allow due process to play out.”
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