[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] RESUMPTION OF THE JULY 16, 2014 FULL COMMITTEE HEARING, ``WHITE HOUSE OFFICE OF POLITICAL AFFAIRS: IS SUPPORTING CANDIDATES AND CAMPAIGN FUNDRAISING AN APPROPRIATE USE OF A GOVERNMENT OFFICE? ======================================================================= HEARING before the COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION __________ JULY 25, 2014 __________ Serial No. 113-125 __________ Printed for the use of the Committee on Oversight and Government Reform Available via the World Wide Web: http://www.fdsys.gov http://www.house.gov/reform ______ U.S. GOVERNMENT PRINTING OFFICE 89-594 WASHINGTON : 2014 ____________________________________________________________________________ For sale by the Superintendent of Documents, U.S. Government Printing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Printing Office. Phone 202�09512�091800, or 866�09512�091800 (toll-free). E-mail, [email protected]. COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM DARRELL E. ISSA, California, Chairman JOHN L. MICA, Florida ELIJAH E. CUMMINGS, Maryland, MICHAEL R. TURNER, Ohio Ranking Minority Member JOHN J. DUNCAN, JR., Tennessee CAROLYN B. MALONEY, New York PATRICK T. McHENRY, North Carolina ELEANOR HOLMES NORTON, District of JIM JORDAN, Ohio Columbia JASON CHAFFETZ, Utah JOHN F. TIERNEY, Massachusetts TIM WALBERG, Michigan WM. LACY CLAY, Missouri JAMES LANKFORD, Oklahoma STEPHEN F. LYNCH, Massachusetts JUSTIN AMASH, Michigan JIM COOPER, Tennessee PAUL A. GOSAR, Arizona GERALD E. CONNOLLY, Virginia PATRICK MEEHAN, Pennsylvania JACKIE SPEIER, California SCOTT DesJARLAIS, Tennessee MATTHEW A. CARTWRIGHT, TREY GOWDY, South Carolina Pennsylvania BLAKE FARENTHOLD, Texas TAMMY DUCKWORTH, Illinois DOC HASTINGS, Washington ROBIN L. KELLY, Illinois CYNTHIA M. LUMMIS, Wyoming DANNY K. DAVIS, Illinois ROB WOODALL, Georgia PETER WELCH, Vermont THOMAS MASSIE, Kentucky TONY CARDENAS, California DOUG COLLINS, Georgia STEVEN A. HORSFORD, Nevada MARK MEADOWS, North Carolina MICHELLE LUJAN GRISHAM, New Mexico KERRY L. BENTIVOLIO, Michigan Vacancy RON DeSANTIS, Florida Lawrence J. Brady, Staff Director John D. Cuaderes, Deputy Staff Director Stephen Castor, General Counsel Linda A. Good, Chief Clerk David Rapallo, Minority Staff Director C O N T E N T S ---------- Page Hearing held on July 25, 2014.................................... 1 APPENDIX Correspondence between the Committee and the White House......... 10 RESUMPTION OF THE JULY 16, 2014 FULL COMMITTEE HEARING, ``WHITE HOUSE OFFICE OF POLITICAL AFFAIRS: IS SUPPORTING CANDIDATES AND CAMPAIGN FUNDRAISING AN APPROPRIATE USE OF A GOVERNMENT OFFICE?'' ---------- Friday, July 25, 2014 House of Representatives, Committee on Oversight and Government Reform, Washington, D.C. The committee met, pursuant to call, at 9:09 a.m., in Room 2154, Rayburn House Office Building, Hon. Darrell E. Issa [chairman of the committee] presiding. Present: Representatives Issa, Meadows, Cummings, Maloney, Norton, Tierney, Clay, Lynch, Cartwright, Duckworth, Kelly, Welch, Cardenas, and Horsford. Staff Present: Alexa Armstrong, Legislative Assistant; Melissa Beaumont, Assistant Clerk; Molly Boyl, Deputy General Counsel and Parliamentarian; Ashley H. Callen, Deputy Chief Counsel for Investigations; Steve Castor, General Counsel; John Cuarderes, Deputy Staff Director; Lamar Echols, Counsel; Adam P. Fromm, Director of Member Services and Committee Operations; Linda Good, Chief Clerk; Caroline Ingram, Counsel; Mark D. Marin, Deputy Staff Director for Oversight; Ashok M. Pinto, Chief Counsel, Investigations; Andrew Rezendes, Counsel; Laura L. Rush, Deputy Chief Clerk; Jessica Seale, Digital Director; Andrew Shult, Deputy Digital Director; Jonathan J. Skladany, Deputy General Counsel; Rebecca Watkins, Communications Director; Krista Boyd, Minority Deputy Director of Legislation/ Counsel; Marianna Boyd, Minority Counsel; Jennifer Hoffman, Minority Communications Director; Julia Krieger, Minority New Media Press Secretary; Elisa LaNier, Minority Director of Operations; Dave Rapallo, Minority Staff Director; and Michael Wilkins, Minority Staff Assistant. Chairman Issa. Committee will come to order. We are here to continue a hearing that began July 16th, 2014, called ``White House Office of Political Affairs: Is Supporting Candidates and Campaign Fundraising an Appropriate Use of a Government Office?'' The purpose of the hearing is to gather facts about the White House Office of Political and Strategic Outreach. I would like to note for the record Mr. David Simas, director of the Office of Political Strategy and Outreach and assistant to the President, is in fact not present at the hearing today. Mr. Simas was invited to testify to give committee members and the American people an opportunity to hear from the head of an office that has, under several previous administrations, misused government resources for political purposes. Despite being under subpoena, Mr. Simas failed to appear at the hearing on July 16th. I gave him a second chance to appear today to fulfill his obligation under a lawful subpoena. At this time, I would like to place in the record the correspondence between the committee and the White House regarding this matter. The White House has informed my staff for the first time this morning at 7:30 a.m. that Mr. Simas would not be present at today's hearing. We continue to work with the White House staff on proposed ways to resolve this. However, today's failure to appear is noted for the record and is not excused. Mr. Cummings, do you have any remarks? Mr. Cummings. Mr. Chairman, I just have a brief statement. Chairman Issa. The gentleman is recognized. Mr. Cummings. And just one question. I just wanted to highlight the letter, the last correspondence that we just put in the record, for the members to--I want to draw their attention to it and aware--it is very brief. It is only three or four sentences. I received your--this is to the chairman dated July 24, 2014: I received your letter of today's date a little after 7:00 p.m. this evening. This is yesterday. My staff has reached out to yours to discuss these issues in good faith. I trust that they will report back to us on their progress. In light of this, it would be helpful if you would withdraw the subpoena to Mr. Simas as we discuss whether we can reach an appropriate accommodation. Sincerely, W. Neil Eggleston, Counsel to the President. The end part of this is very brief, Mr. Chairman. Mr. Chairman, before we proceed any further, I just want to make sure, confirm what we talked about already, that we understand that we are doing--what we are doing this morning so our members will be clear. You resumed this hearing this morning even though we knew Mr. Simas was not coming. And earlier this morning, your staff told special counsel, Carolyn Lerner, not to come to the hearing today, and so we won't have her testimony. My understanding is that you plan to move next to the business meeting to consider your resolution on Mr. Simas. And is that correct? Chairman Issa. At this time, based on his non-attendance, yes. Mr. Cummings. And just to be clear, I have a statement I would like give. And I am happy to wait until the business meeting to give it, but I want to make sure that I will have that opportunity, and you told me that I would. Chairman Issa. That is correct. Although if you'd like to give it now, you may. Mr. Cummings. No. I will wait till the business meeting. Chairman Issa. Okay. Mr. Cummings. Thank you. Chairman Issa. Thank you very much. Mr. Cummings, just in brief response, as you know, we have an inherent obligation of oversight. The question before us today is a very straightforward question: Are we doing oversight? Is it our right and our obligation to do oversight? I believe it is. There is a long precedent that when this committee asks for someone appropriately, and they are not made available, and we believe, the chair believes we need that person--and in the case of an office of only four people, the head is not a big ask--to be the most appropriate, that we expect that person to come. The record will show that we have negotiated and attempted alternatives, including discussions about possible transcribed interviews and other nonpublic ways to get the same information. However, the subpoena is, in my opinion, inappropriate to lift, because ultimately, lifting the subpoena implies and would mean that he may not come. It is the considered opinion of this committee chair that we have an absolute right and obligation to investigate, not any wrongdoing, no predicate or claim of wrongdoing--however, this is an office that has a past, that past, under both Republicans and Democrats, have been questioned, and there has been an odd situation of saying it was wrong, but keeping it for 3 years; shutting it down and then reconstituting it much smaller. And as you and I spoke, and if you don't mind, something that we said in private, the question that came from the briefing, which I was appreciative that the White House did give us, was that this office controls only the President and the First Lady, and it does not control the members of the Cabinet. As the earlier proceeding made clear, we have an obligation to look at all government officials, whether covered by the Hatch Act or not, and find out whether or not they are doing political activity with government money and government time unless explicitly exempted. It is the considered opinion at this time of the committee and Ms. Lerner, the counsel, that the four people whose purpose it is to schedule the president and the First Lady, who are exempt from the Hatch Act, is in fact potentially a necessary office. Because this office was closed by this President as wrong and, if you will, unnecessary, operated for 3 years, without finding out if those four individuals are necessary and how their use of our taxpayer dollars are being used, is a question. And when we reconvene, and probably a second hearing after Mr. Simas appears at the first hearing, will be to ask the second question: If this office controls only the President and First Lady, and there are hundreds of potential Cabinet and sub-Cabinet officers who then are controlled to go to places where they meet, participate either overtly in political activities or are scheduled to be in districts of Senators and--or States of Senators and districts of House Members at times when it might be beneficial to their campaign, so literally fundraising or, less literally, support of candidates' reelection, who is scheduling them? How are they scheduling them? This was intended to be a short, and I hope it still will be, oversight of a relatively small but, in the past, controversial office consistent with our requirement to do oversight even without a predicate of wrongdoing. I do want to make sure the committee understands on both sides of the aisle that we were going to ask the question as to the President and First Lady, and we believe we will get satisfactory answers. We then must move on to the Cabinet. And, as you know, under this President, not uniquely, it happens with other past Presidents, we have had two Cabinet officers who did in fact commit Hatch Act violations. That tells us that we have a control responsibility with a predicate, an inherent predicate, for making sure that the organizational systems for Cabinet officers and the like is covered. I claim no predicate for the office of the President. I claim oversight, and I believe you would support me in that principle. I think we do have a predicate in the case of the Cabinet, but we have no ongoing wrongdoing accusation about the cabinet. We simply have a history under Presidents of both parties that this has been an area of concern and past violations. So this has been communicated back and forth with the White House. They understand this is not alleging a scandal at any level, but in fact doing the oversight that we are pledged to do and that cannot be done by the executive branch, can only be done by our branch. So I look forward to your remarks when we open for the business meeting. I take it very serious that we are going to likely find that--that the committee believes Mr. Simas has a responsibility to be here and find that, once again, we are going to insist that he respond to the subpoena either in its original form or, if we can reach a mutually agreeable accommodation, that accommodation. Mr. Cummings. Will the gentleman yield? Chairman Issa. Of course. Mr. Cummings. First of all, Mr. Chairman, I thank you for what you just said, and what you said is accurate as to what our discussions have been. I want to make that very clear. With regard to--I want to--so that the public and the committee will be clear, so there are no--and I realize that you are not saying that there needs to be, but you are saying that, if I understand it, to your knowledge, Mr. Simas has done nothing wrong and his office has done nothing wrong. Chairman Issa. We are accusing neither the President nor this four-person office of any wrongdoing. There is a past history that you and I are both aware of that caused an opinion that it needed to be closed and the closing of the office. And so inherently when an office is closed, one might say in scandal, and that is a multi-Presidential scandal, and then reopened, it is probably inherently the most important oversight we can do and say, in the past, this didn't work properly. How do we know it will work properly going forward? I believe the American people have an obligation--or we have an obligation to make sure that we spend the money well and that the American people have a comfort level, but again, you are exactly right, Mr. Cummings: I allege no ongoing wrongdoing, but it is more appropriate when you have a history like this to look at it than the average four-person office in the White House. Mr. Cummings. And there were two Cabinet members that you mentioned. And, of course, we would agree that those offenses, Hatch Act offenses, took place long before this incident, the opening of this office. Chairman Issa. That is correct, although I believe one of them likely took place before the closing of its previous office, but--and as you and I talked about in the White House briefing, they told us they are not controlling through this office the activities of members of the Cabinet, which actually raises the concern that I think you and I are going to have to mutually work on is, if not this office, then who do we look to to make sure that these inherent calls from a party office, currently the Democratic party, but it could become the Republican party at some day in the future, who allows those, who coordinates them, who spends the government dime when that call comes in scheduling or talking about why the Secretary of blank should go support the Congressman of what? Mr. Cummings. And would the gentleman yield? Chairman Issa. Of course. Mr. Cummings. So as I hear you, bringing in Mr. Simas in one respect is sort of trying to create a preventive, do something to prevent something that could possibly happen in the future based upon what happened under previous administrations. Is that what you are trying to say? Chairman Issa. Not only that, but I think in a sense, and I hope we all look to this as we look at this office and the others, if Congress looks at a system and says, we see nothing wrong with the system, and then the system is faithfully executed and something bad happens, then it is not a scandal; it is a need for further reform. And I will give a current example. We voted, we broadly voted in 2008 for a law on immigration that now is at the center of some problems, and we as a government are looking to fix something, but it wasn't--it isn't a scandal that people are taking advantage of a 2008 law, and the American people, I think, currently understand the immigration question; it is simply something we looked at, we voted for and now we see that. If we look into these various activities and we see nothing wrong in the system that is explained to us and in what we are told is happening, then, in fact, in a sense, we add to the ease with which the administration and future administrations can feel this is an appropriate way to operate. It is one of the reasons that we have been communicating with Carolyn Lerner. It is one of the reasons that we want her input, because in the past, she issued a scathing report finding that under both President Bush and in an ongoing sense through 2011, the administrations of those two Presidents were using an office that was inherently flawed. And that is what we are making sure we look at before this goes much longer. Mr. Cummings. Will the gentleman yield? Chairman Issa. Thank you. I will. Mr. Cummings. And then I will just have one or two more questions. Mr. Chairman, you know, when I read the letter that you wrote yesterday, I think it was, there were two new issues that came up with regard to the President going on trips, official trips and then doing some campaigning, if I remember correctly, and I had not seen those allegations before. The reason why I raise this is because---- Chairman Issa. And, Mr. Cummings, if you could yield. Mr. Cummings. Sure. Chairman Issa. It is not an allegation. It is an observation. Mr. Cummings. Okay. Chairman Issa. All Presidents do both, and this office's coordination is a very simple question of it. So I appreciate that. Mr. Cummings. And I guess what I am concerned about is-- well, two things. One, it seems as if--I just wonder when the questions end. In other words, this was a question that was presented yesterday, and Mr. Simas's--I am sorry, Mr. Eggleston's response was, Well, you know, we will continue to work with you. And it seems like--I am just wondering whether there is a constant movement of the goalposts. And the public needs to know that our staffs met with the White House for 75 minutes, and they answered just about every question, they--they left the meeting probably thinking they did, and then some other questions came up. And I know that things like that happen, but I guess, at some point, where does it end, but more significantly, you understand the concern of the White House. And it is not just this White House. There will be future folks who occupy the White House who will be of the Republican party, and we may be up in heaven somewhere, but---- Somebody laughed, but anyway. Chairman Issa. What you are implying is this isn't heaven? Mr. Cummings. But I guess my concern is the White House's concern, and I think it would be under a Republican, too, there are certain advisors that they want to make sure that they have this freedom to talk to---- Chairman Issa. And I want to bring this to a close---- Mr. Cummings. Sure. Chairman Issa. --and we will bring up the next part, but the gentleman's point is a good one. I want to make sure that we come to an understanding. Oversight is ongoing, and we are not looking to ask about, on a trip, what did the President say or the communication. We understand the nature of that advice. And we are not asking why did--why did you decide, in consultation with the President, to have the President do X and Y? The organizational questions, which included the one in the letter, are, how do you decide? What is the system? And how do we know, again, that dollars paid to Federal employees are, in fact, even though they are clearly supporting campaign efforts, that they are absolutely necessary and the best possible use of the President's time and money and the people's time and money, simply because we have a unique situation with the President, that we don't want him going down to the Democratic National Committee for briefings. We don't want the First Lady out and about or having to go back and forth to the residence. These are accommodations unique, in that we are using taxpayer dollars in support of campaigns, but only because of the unique security considerations and so on of the President. So, for that reason, the process is in fact important, but we are not moving the goalposts, to be honest. We have a lot of questions. I don't know that all have been asked. And I am absolutely positive that if we go through this process, many of your members will have additional questions, and we would want to make sure that all relevant questions, all questions related to the American people's taxpayer dollars and the necessity of this are answered. So I look forward to eventually having that dialogue. Mr. Cummings. Thank you, Mr. Chairman. Chairman Issa. For all involved, this meeting, this committee stands in recess. Mr. Cummings. It is estimated that we will come back at 10:15, folks, 10:15. 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