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Congress

Key Democrat seeks inspector general probe into FAA chief’s airline stock divestment

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The Senate Commerce Committee’s top Democrat is calling on the Transportation Department’s independent watchdog to launch an investigation into whether Federal Aviation Administration Chief Bryan Bedford “profited from deliberately violating his ethics agreement” by not divesting from an airline company — which he once ran — during a stipulated time frame last year.

Bedford had vowed in that agreement to dispose of his equity in the parent corporation of Republic Airways, the regional carrier he presided over before joining the Trump administration, within 90 days of being confirmed to head the FAA. But he failed to meet that early October deadline, unloading millions of dollars in stock afterward, ethics documents he filed show.

In a Wednesday letter to acting DOT inspector general Mitch Behm, first reported by Blue Light News, Sen. Maria Cantwell (D-Wash.) and other Democratic lawmakers alleged that Bedford might have intentionally breached his agreement by waiting to divest his stock until after Republic Airways Holdings completed a merger with another regional airline company, Mesa Air Group.

Sens. Tammy Duckworth (D-Ill.) and Ed Markey (D-Mass.) signed the letter, too.

“We also have serious concerns about the veracity of Mr. Bedford’s shifting explanations for violating” his pledge, the trio said. Bedford ultimately divested his shares fully by late February, disclosing that he sold between $5.5 million and $26.2 million this year.

The lawmakers asked that Behm probe if the FAA chief “made material misrepresentations to Congress or the Office of Government Ethics” and urged him to dig into whether “any disciplinary or corrective actions are warranted,” including having Bedford relinquish “any excess capital gains he has realized.”

They argued that it appears he could have sold his stock on time, adding that the reason for his “divestiture obligation is obvious”: He holds significant sway over the regional airline industry as FAA administrator.

The agency told Blue Light News it will respond to the lawmakers directly and noted that Bedford has divested his stock. Republic Airways Holdings didn’t immediately respond to a request for comment.

Bedford previously defended himself during congressional testimony in December, saying, in part, that he followed career ethics officials’ advice.

He added: “I played it right down the fairway, completely transparent, open, honest about where I was at, what I was trying to accomplish.”

The inspector general’s office confirmed to Blue Light News that it received and will review the senators’ letter but otherwise has no comment for now.

Bedford retired as chief executive officer and president at Republic Airways Holdings, a private firm, on July 1, according to a Securities and Exchange Commission filing. The Senate OK’d him a little over a week later.

Under the terms of his ethics agreement, Bedford committed to divesting from the company no later than Oct. 7.

But in paperwork he signed that day, first reported in November by POLITICO, Bedford said he had yet to ditch his stock. He added that he would remain recused from any matters affecting the carrier’s financial interests while he retained his equity and was seeking an extension of his deadline.

He contacted Judith Kaleta, DOT’s deputy general counsel, to request another 60 days, citing his busy work schedule.

Kaleta wrote to OGE, the federal government’s central ethics office, urging it to grant Bedford’s ask.

Then, there seemed to be a misunderstanding. In an October conversation with OGE, outlined in a later email exchange, Kaleta recalled that “it was not clear to me that [the office] had reached a formal decision on the request.”

But OGE on Dec. 1 informed Kaleta in writing that it wouldn’t grant Bedford an extension and inquired about whether he had divested, saying the office would alert the Senate to the issue. Subsequently, Kaleta argued that she had thought Bedford’s ask was still unresolved; OGE responded: “We were not aware you believed the request for an amendment was still pending. … We conveyed being busy with your position did not constitute an ‘unusual hardship.’”

By this point, Republic Airways Holdings and Mesa Air Group had merged; the finalized deal was announced in late November. The combined carrier became publicly traded.

Kaleta didn’t immediately respond to a request for comment. Patrick Shepherd, an OGE spokesperson, in a statement said the office is “committed to transparency and citizen oversight of government” but doesn’t respond to questions about specific individuals.

Under the merger, Bedford was able to turn 16,733 private shares into “at least” 652,475 shares in the merged entity, according to the Democrats’ Wednesday letter, which cites an SEC filing.

OGE notified Senate Commerce Chair Ted Cruz (R-Texas) of Bedford’s ethics agreement violation on Dec. 8, and Cantwell expressed outrage over the matter.

During a Senate aviation subcommittee hearing later that month, Bedford faced sharp questions from some Democrats about the topic. He argued that he had simply followed the advice of career ethics officials; he was appropriately recusing himself in the meantime; and his hands were now tied due to the merger, with his stock “terminated.”

“I’m waiting for the shares to be reissued under the new organizational structure,” he said, apparently referring to the combined company, which is still called Republic Airways Holdings.

But he added: “My intention was always to complete the merger and to sell the shares in the market. That was my intention coming into government.”

His ethics agreement made no mention of this, and the Democrats’ Wednesday letter homed in on his testimony before the subcommittee.

Bedford disclosed in March that he had completed his divestment as of Feb. 20.

In a separate ethics document released in April, he noted that he had sold between $5.5 million and $26.2 million in stock in the company since the beginning of this year. Federal officials like Bedford only report transaction amounts in wide ranges.

Further complicating the situation, Bedford in that paperwork also revealed a sale of up to $5 million in stock on Oct. 21, the trio of Democrats said in their letter. This occurred after his ethics agreement deadline but before the merger was completed.

Bedford “never mentioned this transaction in his official correspondence or congressional testimony in December,” they said.

It appears, the lawmakers said, that Bedford was capable of fully divesting on time.

At close on Nov. 26, the day after the announcement of the merger’s completion, Republic Airways Holdings was trading at $21 per share. It stood at $19.75 on Feb. 20.

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Congress

House sets vote on Russia sanctions bill

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House lawmakers are set to vote on the sweeping Russia sanctions bill that senators overwhelmingly voted to approve in August, but now faces a tough test in the House where Democrats fear the bill will give President Donald Trump too much tariff power.

The Senate-passed and White House-backed measure is finally getting consideration from the House, after GOP leaders omitted it from their agenda when lawmakers returned from August recess. Many House Democrats — including Minority Leader Hakeem Jeffries — have voiced opposition for fear that it would give Trump expansive and risky new tariff authorities.

House GOP enthusiasm for the measure has also been tepid, after a boost following the sudden death of its champion, Sen. Lindsey Graham, wore off.

The House Rules Committee scheduled a meeting to consider the bill Monday afternoon.

Advocates of the legislation argue the bill would give Trump the tools he needs to pressure Russian leader Vladimir Putin to end the war on Ukraine. The bill would issue mandatory sanctions on Russian leadership and its energy sector — as well as collaborators in Moscow’s defense industry and so-called shadow fleet.

But it would also give Trump the ability to hit top buyers of Russian oil with 100% tariffs, a move that Democrats say is dangerous given the White House’s eagerness to slap tariffs on U.S. friends and foes alike.

“Donald Trump already has ample authority to impose sanctions on the companies, individuals, and vessels propping up a Russian war machine that continues its deadly attacks on Ukraine,” Reps. Gregory Meeks (D-N.Y.) and Richard Neal (D-Mass.) wrote in a joint statement with Democratic Rep. Don Beyer of Virginia and Sens. Ron Wyden (D-Ore.) and Elizabeth Warren (D-Mass.) earlier this month. “Congress does not need to greenlight new tariff authority for the President to impose those sanctions on Russia today.”

Backers of the bill were quick to encourage its passage after the vote was announced on Friday.

“Great news that the House will vote on the much-needed Russia sanctions bill,” Senate Foreign Relations ranking member Jeanne Shaheen (D-N.H.) wrote on social media. “Ukrainian civilians continue to be killed by Putin’s war machine, and this bill hits the Kremlin’s coffers hard. Now is the time to pass it and force Putin to the negotiating table.”

The measure passed in an 86-11 vote in the Senate in August.

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House eyes Tuesday vote on bill to curb data center costs

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House GOP leaders have picked Tuesday as the day to vote on legislation intended to shield Americans from the potential costs associated with the data center boom, according to two people granted anonymity to share private scheduling plans.

The upcoming floor action comes after a healthy number of vulnerable Republicans signed onto the measure in recent days, a sign that fears about the issue’s political volatility ahead of the midterms are continuing to grow as voters complain about rising energy prices as a result of data center proliferation.

The bipartisan Ratepayer Protection Act, which aims to compel tech companies to pay for the infrastructure associated with data center development, passed unanimously out of the House Energy and Commerce Committee this summer. Senior Republicans, however, said last week they were still weighing whether to bring the bill to the floor before the House recesses until after the November elections.

The decision to proceed this coming week signals that pressure has been building on leaders to act, underscored by the at least five House GOP frontliners who have signed on as cosponsors since September 1: Reps. Bill Huizenga and Tom Barrett of Michigan, David Valadao of California, Jen Kiggans of Virginia and Mónica de la Cruz of Texas.

Valadao, in an interview a week before he signed on as a cosponsor, called such measures “fine” but balked at the idea House Democratic leaders were trying to politicize data centers right before an election.

“Obviously it has to be addressed — making sure that we’re protecting our natural resources like water in my district,” he said. “Obviously, with California and their regulatory process, they’ve made energy more expensive than anywhere else in the country. So those are major concerns that need to be addressed, and I think those pieces of legislation will make sense.”

But, he added, allowing Democrats “to turn this into a political issue, I would say, is pretty irresponsible.”

The total number of cosponsors on the bill, championed by Reps. Gabe Evans (R-Colo.) and Kathy Castor (D-Fla.), to 42 Democrats and Republicans combined.

The Tuesday vote will take place under an expedited procedure that requires a two-thirds majority of those present and voting to secure passage.

Mia McCarthy and Amelia Davidson contributed to this report.

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Capitol agenda: Trump tells Republicans to vote or ‘go to hell’

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He’s promising to pay you $5,000. He’s asking you to swear an oath. He’s telling you you’ll “go to hell” if you don’t vote November 3.

President Donald Trump spent the last two days in Dallas trying every which way to convince his GOP base to turn out for the midterms and re-elect a Republican Congress.

We’ll know in 53 days if it worked.

Republicans who attended the party’s midterm convention said they hope it drives Americans to the polls this November. House Majority Whip Tom Emmer said in an interview he’s confident the GOP holds the House majority but acknowledged it’ll come down to Republican voter turnout.

“Do we have some headwinds? Absolutely. Is this the greatest environment we’ve ever run in? No,” Emmer said. “If our people show up, we’ll do just fine. If they sit back at home, we’re going to have some bumps that we got to deal with.”

Trump began the convention by surprising even senior Republicans with a pledge to distribute $5,000 checks to Americans if they re-elect a GOP House and Senate majority. Republicans are now left grappling with the practicality of the proposal and whether to make promises to voters on the campaign trail.

Then the president ended evening No. 2 leading the crowd in swearing an oath that they would bring their family and friends to the polls to vote for Republicans in November.

“You know what happens if you don’t vote? You go to hell,” Trump told Dallas’ American Airlines Center. “Go out and vote, go out and vote!”

Republicans’ messaging heavily focused on painting Democrats as a socialist party the country can not afford to elect into power. It was reminiscent of Democrats’ message going into the 2024 election warning Americans they couldn’t afford to elect Trump again, rather than leaning into specific policy agendas.

Obviously, that didn’t prove to be a winning strategy — and Republicans are hoping they don’t make the same mistake.

“That’s a good question,” Rep. Dan Meuser of Pennsylvania said at the convention when asked if he’s worried the party is too focused on its opponents. But he was confident GOP policies on taxes, regulations and education that were enacted in the past two-years are drastically different from what Democrats are proposing.

“We’ll see, but I do think you got to do all the above,” Rep. Jim Jordan responded to the same question. “We did what we said we would do.”

Read also: How Republicans are privately talking about their Senate map at the convention

What else we’re watching: 

— GOP LEADERS CAVE TO DATA CENTER VOTE: House GOP leaders will put legislation on the floor next week marking Congress’ most significant step yet to regulate data center infrastructure that’s driving bipartisan outrage nationwide. Leaders had been weighing whether or not to move forward with the measure — known as the Ratepayer Protection Act — on the floor, with Majority Leader Steve Scalise’s office claiming late last month that some of his members had problems with the proposal that still needed to be worked out. That Scalise and others have now caved is a sign of the political pressure the party is feeling on the matter as Election Day draws near.

— RAND PAUL’S PRICEY FLIGHT — One of the Senate’s biggest fiscal hawks has spent tens of thousands of taxpayer dollars on private jets. Six staffers for Sen. Rand Paul traveled by private jet as part of a bipartisan congressional investigation over several months in 2024 into the attempted assassination of then-presidential candidate Trump — costing taxpayers nearly $18,000, according to Senate expenditure records reviewed by Blue Light News. The expense is not illegal or against Senate rules, but it fits a pattern Paul has shown over the years of spending lavishly on travel while simultaneously crusading against out-of-control federal spending.

Meredith Lee Hill, Jason Beeferman, Kelsey Brugger and Chris Marquette contributed to this report.

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