The Dictatorship
TikTok lost the legal battle, but may win the political war
Welcome back, Deadline: Legal Newsletter readers. And thanks to Jessica Levinson for guest writing last week’s recap on Donald Trump’s New York sentencing. This week was packed with legal news ahead of Trump’s inauguration Monday — so let’s jump right in.
TikTok lost its Supreme Court battle against a U.S. ban that’s set to start Sunday, but it still might win the political war. The justices rejected a First Amendment challenge from the popular social media app, citing national security fears of Chinese control. But the app’s fate is unclear as Trump returns to the White House with an apparent openness to keeping TikTok alive. In a video posted to the app after the ruling, TikTok CEO Shou Chew — who’s expected to attend Trump’s inauguration as an honored guest — praised the president-elect for his “commitment to work with us to find a solution that keeps TikTok available in the United States.”
The First Amendment also featured in a SCOTUS hearing this week involving pornography. Texas is defending a state law requiring age verification to access sexual content online, and the adult industry raised a free-speech challenge. One of the more memorable lines from the hearing was Justice Samuel Alito asking how the popular website Pornhub compares to the old Playboy magazine. We expect a ruling by July in the case with vast implications for constitutional rights.
The justices added a new batch of appeals to review, including a case about LGBTQ-themed books. The case brought by a religious rights group asks the court to resolve a contentious question: “Do public schools burden parents’ religious exercise when they compel elementary school children to participate in instruction on gender and sexuality against their parents’ religious convictions and without notice or opportunity to opt out?”
And we finally got to see Jack Smith’s report — the volume on the federal election interference case, anyway. Attorney General Merrick Garland released that part of the special counsel’s report, and one interesting aspect was Smith’s explanation for not alleging insurrection. A conviction under that charge could have disqualified Trump from office. But of course, the Supreme Court’s immunity rulingwhich Smith subtly critiqued in his report, would have blocked a trial on any charges before the election.
Smith’s classified documents volume is still secret. That’s partly because Garland agreed to shelve it while the Justice Department tries to revive charges against former Trump co-defendants Walt Nauta and Carlos De Oliveira. The legal concern is that it could unduly prejudice defendants who might still face a jury trial. Recall that Trump-appointed Judge Aileen Cannon dismissed the documents case last year, and DOJ withdrew its appeal to revive Trump’s charges after the election, due to a federal policy against prosecuting sitting presidents. While public release of the report isn’t imminent, Cannon presided over litigation this week about whether Garland can share it secretly with select members of Congress, a matter that prosecutors argued is none of the judge’s business. Nonetheless, she held a hearing Friday and was reportedly skeptical of DOJ’s urgency to share the report with Congress.
Meanwhile, congressional Democrats urged Garland drop the case against Nauta and De Oliveira,”https://www.BLN.com/deadline-white-house/deadline-legal-blog/jack-smith-report-trump-merrick-garland-legal-war-rcna187946″ target=”_blank”>so that the public can see the full documents report. In the likely event that Garland doesn’t do that, Trump’s DOJ will start off in the awkward position of pressing an appeal that, if successful, would restore charges for the purpose of moving toward a trial that would center on the president’s alleged criminality surrounding national defense information and obstructing justice. (He pleaded not guilty in all four of his criminal cases, with the only one of them that went to trial, in New York state court, resulting in a conviction.)
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So don’t be surprised if the Trump DOJ withdraws the classified documents appeal. Department leadership is set to be stacked with his personal lawyersas attorney general pick Pam Bondi faced questions at her confirmation hearing this week about her independence (or lack thereof) from Trump. Among other things, she had trouble conceding directly that Trump lost the 2020 election. Republicans appear poised to confirm her to the top cop post.
However compliant Trump’s DOJ would be in the Nauta/De Oliveira matter (among others), he could also kill the case himself with pardons. As President Joe Biden this week set a clemency record for nonviolent drug offenders, the pardon gap between Biden and Trump grew starker ahead of Trump’s return. One of the many outstanding clemency questions is what he’ll do with the Jan. 6 cases, in which he has vowed widespread relief.
But how many Jan. 6 defendants (if any) will Trump pardon? And how quickly? We’ll revisit those and other clemency questions as Trump’s second term gets underway, with New York City’s indicted Democratic mayor, Eric Adams, flying to meet Trump in Florida on Friday.
Speaking of Trump and pardonsa huge story in the legal community this week was the indictment of legendary lawyer and SCOTUSblog publisher Tom Goldstein. The federal tax indictment in Maryland tells a cinematic story of the renowned attorney playing high-stakes poker around the globe and failing to pay taxes back home.
And what, you might wonder, does that have to do with Trump and pardons? Back in November — right after Trump’s election win — Goldstein wrote a New York Times op-ed arguing for “abandon[ing]” the president-elect’s criminal cases. I thought it was an odd piece at the time, and I wrote my own response explaining why I thought so. But in retrospect, was the lawyer positioning himself for clemency?
That’s just one data point supporting the possibilitybut here are two more. Goldstein is represented by lawyers who’ve also represented Trump, John Lauro and Christopher Kise (in a statement, they said they’re “deeply disappointed that the government brought these charges in a rush to judgment without understanding all of the important facts. Our client intends to vigorously contest these charges and we expect he will be exonerated at trial”). And finally, there’s the timing of the charges. Is it a coincidence that the indictment came just days before the Trump DOJ takes over? Stay tuned.
Have any questions or comments for me? I’d love to hear from you! Please emaildeadlinelegal@nbcuni.comfor a chance to be featured in a future newsletter.
Jordan Rubin is the Deadline: Legal Blog writer. He was a prosecutor for the New York County District Attorney’s Office in Manhattan and is the author of “Bizarro,” a book about the secret war on synthetic drugs. Before he joined BLN, he was a legal reporter for Bloomberg Law.
The Dictatorship
Energy chief says coal plant orders helped during winter storm
WASHINGTON (AP) — The Trump administration said Friday that its use of emergency orders to keep aging coal-fired plants operating helped prevent a major blackout from power shortages during the brutally frigid weather that has gripped most of America for the past two weeks.
Scattered outages occurred because of ice accumulation that felled local power lines, leaving hundreds of thousands without power, at least briefly. But the nation’s regional power grids generally maintained reliable electricity service, with natural gas and coal leading the way, Energy Secretary Chris Wright and other officials said.
“The big picture story is where we actually got energy from during this storm,” Wright said at a news conference at the Energy Department. “In fact, we had times where our existing capacity couldn’t deliver anything and the lights would have gone out if not for emergency orders.’’
Critics said Wright’s comments understated the role that wind and solar power played during the storm, adding that the administration’s orders over the past nine months to keep some oil and coal-fired plants open past their planned retirement dates could cost U.S. utility customers billions of dollars over the next few years.
In the lead-up to the storm and cold temperatures, Wright also excused utilities from pollution limits on fossil fuel-fired plants and ordered that backup generators at data centers and other large facilities be available to grid operators and utilities to supply emergency power.
Trump administration’s ‘way of doing business’
Deputy Energy Secretary James Danly drew a contrast with the grid performance during a similar severe storm in 2021, calling the Trump administration’s approach a “new way of doing business” during power emergencies.
“The bottom line here is that we managed to ensure that there was sufficient capacity,” Danly said. “Not one area had a blackout or a forced outage due to loss of capacity.”
There were nearly 1 million outages during the storm’s peak, but most were not long-lasting, Danly said. Nearly 55,000 customers were without power as of Friday, including more than 17,000 in Mississippi and 7,000 in Texas, according to the outage tracking website poweroutage.us.
Wright cited statistics showing that natural gas — long the nation’s leading source of electricity — provided 43% of electric power at peak generation during the storm, followed by coal at 24% and nuclear at 15%. Renewables such as wind, solar and hydropower provided a combined 14%, Wright said.
Wright and President Donald Trump have frequently made the case for their fossil fuel-friendly orders, blaming the Biden administration and Democratic-leaning states for policies they say threaten the reliability of the nation’s electric grid and drive up electricity bills.
The proportion of coal and natural gas power rose substantially during the storm, while the proportion of wind power used during the storm dropped by 40%, Wright said. Solar stayed flat at a fraction of the amount of coal and natural gas power.
Wright dismissed solar as “meaningless” during a severe storm in certain regions and said, “It’s not an all-weather power source.”
Pushback on orders to keep coal plants running
Some state and utility officials have chafed at Wright’s orders to keep plants operating, saying they’re not necessary for emergency power and are simply raising electric bills for regular ratepayers to keep relatively expensive plants operating.
Preventing the nation’s coal plants from retiring over the next three years could cost consumers at least $3 billion per year, according to a report from Grid Strategies, a consulting firm.
“A lot of these plants were retiring because they’re no longer economic to operate,” said Michael Goggin, an executive vice president at Grid Strategies. “It’s expensive to keep them going.”
Opponents have challenged the coal orders in court, arguing that Congress intended for emergency powers to be used only in rare, temporary cases.
The nonprofit owners of the Craig Generating Station in Colorado, the Tri-State Generation and Transmission Association and Platte River Power Authority, last week filed a protest with the Energy Department seeking to reverse Wright’s order to keep its Unit 1 operating. The Dec. 30 order came one day before it was to shut down.
In its request for a rehearing, the nonprofits said its members and communities were unfairly being forced to pay to keep a costly and unreliable plant operating and that the department didn’t even comply with the law requiring it to show why this was the best alternative. They also said the department’s order unfairly punished them for the mistakes of other utilities.
Wright brushed off the criticism, saying there would be “far larger costs from blackouts.”
Solar and wind said to save consumers ‘billions’
Clean energy advocates said that renewable sources saved consumers billions during the storm and helped ensure the lights stayed on, especially in regions that have significant investments in wind, solar, and energy storage.
In Texas, wind, solar and storage provided about 25% of power for the grid’s 27 million customers — a major increase over 2021 and a key reason blackouts were largely avoided, said John Hensley, a senior vice president at the American Clean Power Association, an industry group.
Wind and solar also accounted for significant power in the Midwest and Southwest, Hensley said. In the mid-Atlantic region served by grid operator PJM, only 5% of power came from wind and solar generation, a fact Hensley blamed on lack of investment in renewables in the region, as well as hostility by the Trump administration to new wind and solar power.
Blaming renewables for not performing during the storm “is like trying to blame someone on the bench for losing the game,” Hensley said. “They didn’t get a chance” to play.
The Dictatorship
Facing high Trump tariffs, South Africa signs framework agreement for trade deal with China
CAPE TOWN, South Africa (AP) — China and South Africa signed a framework agreement for a new trade deal on Friday as Africa’s leading economy looks to other options following the high import tariffs imposed on it by the U.S. and its diplomatic fallout with the Trump administration.
South Africa’s Ministry of Trade and Industry said the agreement would start negotiations over a deal that would give some South African goods, such as fruit, duty-free access to the Chinese market. The ministry said it expected the trade deal to be finalized by the end of March.
In return, the trade ministry said China will get enhanced investment opportunities in South Africa, where its car sales have seen rapid growth.
The U.S. slapped 30% duties on some South African goods under U.S. President Donald Trump’s reciprocal tariffs policy — one of the higher rates applied across the world. South Africa has said it is still negotiating with the U.S. for a better deal.
The China-South Africa deal follows others looking for alternatives to U.S. partnership in the face of Trump’s aggressive trade policies.
The announcement on the negotiations between China and South Africa came days after Trump issued a short-term renewal of a longstanding free-trade agreement between the U.S. and African nations. The U.S. extended the African Growth and Opportunity Act, which South Africa is a major beneficiary of, just until the end of the year and indicated it would be modified to fit the administration’s America First policy.
China is already South Africa’s largest trade partner for both imports and exports, while Chinese economic influence across the African continent continues to grow and it dominates in the extraction of Africa’s critical minerals that are key components for new high-tech products.
“South Africa looks forward to working with China in a friendly, pragmatic and flexible manner,” the trade ministry said.
Trade and Industry Minister Parks Tau, who traveled to China to sign the agreement, said the deal would benefit South Africa’s mining, agriculture, renewable energy and technology sectors.
U.S.-South Africa diplomatic ties have plunged to their worst point in decades after the Trump administration accused South Africa of pursuing an anti-American foreign policy and allowing the violent persecution of a white minority group at home. South Africa’s government has denied allegations that white Afrikaner farmers are being killed in a widespread effort to seize their land as baseless.
Trump has also barred South Africa from taking part in meetings of the Group of 20 rich and developing nations this year in the U.S.
South Africa’s biggest exports to China are gold, iron ore and platinum-group metals, while Chinese cars have quickly grown their market share in South Africa. Industry groups estimate Chinese brands have grown from around 2.8% of the South African market in 2020 to between 11% and 15% last year.
China’s BYD overtook Elon Musk’s Tesla in 2025 as the world’s biggest electric vehicle maker.
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AP Africa news: https://apnews.com/hub/africa
The Dictatorship
Treasury Secretary Bessent’s testimony descends into shouting matches
WASHINGTON (AP) — A hearing about oversight of the U.S. financial system devolved into insults several times Wednesday as Treasury Secretary Scott Bessent clashed with Democratic lawmakers over fiscal policy, the business dealings of the Trump family and other issues.
Appearances by treasury secretaries on Capitol Hill are more typically known for staid exchanges over economic policy than for political theater, but Wednesday’s hearing of the House Financial Services Committee hearing featured several fiery exchanges between the Republican Cabinet member and Democrats, with Bessent even lobbing insults back to the lawmakers.
Bessent called Rep. Sylvia Garcia “confused” when she questioned how undocumented immigrants could affect housing affordability across the country, prompting the Texas Democrat to snap back, “Don’t be demeaning to me, alright?”
Bessent later mocked a question from Rep. Stephen Lynch, D-Mass., about shuttered investigations into cryptocurrency firms. Lynch expressed frustration with Bessent’s interruptions, saying, “Mister Chairman, the answers have to be responsive if we are going to have a serious hearing.”
Bessent replied, “Well, the questions have to be serious.”
After a back-and-forth over whether tariffs cause inflation or one-time price increases for consumers, California Democratic Rep. Maxine Waters asked committee leaders to intervene with Bessent: “Can someone shut him up?”
And in a fiery exchange with Rep. Gregory Meeks over the Abu Dhabi royal family’s investment into the Trump family’s World Liberty Financial cryptocurrency firm last year, the New York Democrat dropped an F-bomb as he shouted at Bessent: “Stop covering for the president! Stop being a flunky!”
The Treasury Department did not immediately respond to a request for comment on the fireworks.
Bessent’s performance was “not a role you typically see a treasury secretary play,” said Graham Steele, a former assistant secretary for financial institutions under Biden-era Treasury Secretary Janet Yellen. The department has traditionally “been removed from some of the day-to-day, hand-to-hand political combat,” Steele said in an interview.
He recalled his former boss having tense exchanges over climate change and policy issues with Republican lawmakers during committee hearings, but the exchanges were not personal, he said, noting treasury secretaries have to strike a “delicate balance” of working with the White House while safeguarding the “economic stature” of the country internationally.
In recent months, Bessent has ratcheted up his insults when it comes to Democratic leaders.
He has called California Gov. Gavin Newsom “economically illiterate,” compared him to the fictional serial killer Patrick Bateman, and called him “a brontosaurus with a brain the size of a walnut.” He has on several occasions called Massachusetts Sen. Elizabeth Warren an “American Peronist” after she told American financial institutions not to finance the Trump administration’s massive support package for Argentina.
Bessent’s combativeness is, in part, a sign of the times, said David Lublin, chair of the Department of Government at American University’s School of Public Affairs.
“President Trump has shown he likes belligerence and he likes nominees and others who defend him vociferously,” Lublin told The Associated Press.
“It’s hard to say that this is unusual for this political environment. What used to be the normal modicum of respect for Congress has frayed to the point of vanishing,” Lublin said.
What was unusual, in Lublin’s view, was for Bessent to reveal his thoughts on monetary policy — normally the purview of the Federal Reserve — and his insistence that Trump has the right to interfere with the decision-making of the central bank. “You have a cabinet secretary defending the president’s efforts to erode institutions,” Lublin said.
On Thursday, Bessent will get another opportunity to spar with lawmakers. He is scheduled to appear before the Senate Banking, Housing and Urban Affairs Committee on the same topic: the annual report by the Financial Stability Oversight Council, which Bessent leads.
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