Todd Blanche Faced the Senate

Donald Trump first named his personal lawyer, Todd Blanche, to be deputy AG, and then acting AG. Now that Trump has cashiered his first pick for AG this term, Pam Bondi, he has nominated Blanche for the top job at the DoJ. Yesterday, Blanche appeared before a skeptical Senate Judiciary Committee to allow the senators to see how good he is at lying with a straight face.

Here are four areas that came up yesterday:

• Jeffrey Epstein: Senators had a lot of questions about the Epstein files, including questions about too many unnecessary redactions, missed redactions in some cases, insufficient effort in following leads, refusal to talk to the victims, not releasing all the files, and more. Todd said it was a Herculean task to meet the requirements of the law. A group of Epstein's victims made a video urging the senators to reject Blanche because information about them was not redacted. Blanche went full-bore Nixon and said: "Mistakes were made."
  
  
• Independence from Trump: Blanche said that he and Trump are not friends, so he could operate independently. He noted that he was formerly Trump's criminal defense lawyer and criminal defense lawyers are never friends with their clients. Case closed.
  
  
• The $2 billion Slush Fund: Trump wants the government to put $2 billion in a big slush fund he can use to reward cronies and punish enemies. Blanche said the plan is dead. Trump says it is not dead. Gee, whom should the senators believe here?
  
  
• Trump's Third Term: When asked if Trump can run for a third term, Blanche said that he is not eligible to run again. He didn't say what would happen if Trump tried anyway.

Since the death of Lindsey Graham, there are 11 Republicans and 10 Democrats on the Judiciary Committee. If one Republican votes with the Democrats to reject confirmation, the nomination is dead. Two Republican skeptics are on the Committee, Sens. John Cornyn (R-TX) and Thom Tillis (R-NC), neither of whom is running for reelection, so Trump can't punish them with a primary. Both questioned Blanche about the slush fund. Having the government give the president $2 billion to reward cronies and punish enemies is without a doubt the most blatant corruption in the history of the United States. Will Cornyn and Tillis pretend they don't see this and vote to confirm? Tillis also pushed Blanche on the Jan. 6 rioters. Blanche said he has "never said that any sort of violence against law enforcement is appropriate." Nevertheless, he refused to condemn Trump for pardoning people who beat cops.

Sen. Cory Booker (D-NJ) brought up a letter signed by 1,200 current and former DoJ employees stating that Blanche is unfit to be AG. Blanche didn't respond. Booker also asked why Blanche could meet with Ghislaine Maxwell but not with Epstein's victims. Blanche said it would be illegal for him to meet with them, but did not explain why that would be the case. Booker said that was nonsense and victims could bring counsel or waive their rights. Then he added: "But you're a lawyer. You know this. That was not truthful." Booker also asked Blanche about the propriety of his attending a dinner with Paramount's CEO, David Ellison, at a time when the DoJ was investigating whether Paramount's proposed acquisition of Warner Bros. Discovery violated antitrust law.

Sen. Sheldon Whitehouse (D-RI) ripped FBI Director Kash Patel and asked: "How long do you intend to put up with that Kash Patel character? Are you good with his airplane jaunts? Are you confident he's not drinking on the job? Are you sure none of his travel is a pretext for vacation activities like snorkeling, Olympics, and visiting girlfriends?" Blanche had a brilliant answer: "That's an extraordinarily obnoxious question, senator."

One question Blanche was overjoyed to answer was from Sen. Katie Britt (R-AL), who asked him if he was prepared to crack down on the availability of mifepristone through the mail. Boy was he ever happy to say he would crack down on that and would devote major resources to doing it.

These confirmation hearings are a total waste of time. The nominees often lie through their teeth (see Kennedy, Robert Jr.). The senators know this, but pretend not to. Fixing this situation would require new legislation, and maybe a constitutional amendment. What would do the job is to have a confirmation be for a limited period of time—say, 1 year, not indefinitely. Then after the trial period, the nominee would have to come back for a second confirmation for the rest of the president's term. At that point, the senators could see whether all the promises the nominee made during the first hearing were kept. If not, they could deny a second confirmation. Of course, the nominee could lie the second time, but by then, the senators would have had the chance to observe the nominee in action.

Blanche's hearing will continue today. If the Senate rejects him, Blanche can stay on as deputy AG for the rest of Trump's term because the Senate confirmed him for that job. If he is rejected, all Trump has to do is leave the AG position open until Jan. 20, 2029, and Blanche will de facto have the powers of the AG until then, just not the title he covets. (V)

Trump Contradicts DHS on ICE

On Tuesday, after ICE agents killed two more people, "border czar" Tom Homan said ICE would stop using traffic stops to catch immigrants. The heat was apparently too much. Then yesterday, Donald Trump said the opposite: ICE will continue to make traffic stops. In a bleat, he said ICE agents were "doing a GREAT job, one that has to be done." He also said the agents were loved and respected in America. Polling shows the reverse, actually.

Homan seems to have a better political ear than Trump. The shooting in Maine is causing Sen. Susan Collins (R-ME) a lot of grief as the Democrats running to replace her are calling her an ICE enabler because she has voted to fund ICE at the current (extraordinary) level. Poorly trained agents continuing the traffic stops are likely to kill more people, causing more political problems, especially among Latino voters. Here is a photo of a protest demonstration in Scarborough, Maine. Protests like this can't be good for Collins' career:

A number of the politicians running for the Democratic senatorial nomination in Maine are calling for ICE to be thoroughly reformed or disbanded. Many of them have noted that although ICE is swimming in money, it apparently can't (or doesn't want to) equip its agents with body cameras.

The Maine killing of Joan Sebastian Guerrero couldn't have come in a worse place or time for the Republicans. It deflects attention from Graham Platner and shifts it to Collins' votes to support ICE. Democrats would love to make the campaign about Collins' support for ICE. She will have a hard time shaking the issue. (V)

Republicans Release Text of Third Reconciliation Bill

Up to three budget reconciliation bills are allowed per year and Speaker Mike Johnson (R-LA) is revving up the lawmaking machinery to try pass #3. Some of his members don't want another one but Donald Trump does, and since the Constitution requires Congress to do whatever the president orders it to do, Johnson has to (at least try to) comply.

Trump wants another $67 billion for defense and $20 billion as welfare for farmers hurt by his tariffs, war in Iran, and other policies. The total, including some miscellaneous other items, is $95 billion. This is far below the $350 billion Trump wanted for defense alone. Some Republicans want spending cuts to match, but Johnson seems to be in no mood for the fights that would bring. Better to put the tab on the national credit card.

Trump also wants the bill to contain the SAVE America Act, which would make voting more difficult for many people. That alone guarantees that no Democrat will vote for it. With a 219-212 margin, Republicans can afford only three defections. Rep. Warren Davidson (R-OH) declared the bill DOA. Other hardliners might also oppose it, although typically it is all bark and no bite with most of them. When Trump calls, they cower under their desks and say "Yes, sir." However, with the filing deadlines past in most states, Trump's go-to weapon, supporting a primary opponent, is running out of steam.

Another problem is that the SAVE America Act is not budget-related and will not survive a Byrd bath in the Senate. If Republicans made the bill just about defense, it would probably pass muster, but with all the other stuff, not so much. Trump wants to solve all these problems by abolishing the filibuster, but Senate Majority Leader John Thune (R-SD) knows what the Democrats would do if they get the trifecta in 2028 and there is no filibuster, so he has refused to abolish it.

Budget Chairman Jodey Arrington (R-TX) is planning to do a first markup of the bill this morning. Once the budget has passed, that unlocks the reconciliation process, which would allow the bill to pass with just 51 votes in the Senate. (V)

Republicans Are Trying to Head Democrats Off at the Pass on Data Centers

Increasingly many people oppose AI data centers for two reasons: (1) NIMBY (electricity and water rates) and (2) jobs. Data centers are becoming a hot political issue and politicians are being forced to take a stand. Being against them brings in votes, but it also brings in industry dollars for the candidate's opponent.

In battles between giant corporations and the people, Republicans are instinctively on the side of the corporations. Only now, they sense danger in that. So in an attempt to preempt their opponents, they have come up with a pledge to try to paper this over. It is called the Ratepayer Protection Pledge. Note that it is a pledge, not a bill that would have the force of law if passed. Just a promise by data center companies to pay a fair rate for electricity and water. In other words, once a data center got built, the company could change its mind on the pledge. It is basically meaningless, but when a company proposes a data center, it can wave the pledge at the locals and hope that they fall for it.

New York is going in a different direction. Gov. Kathy Hochul (D-NY) has signed an XO pausing all new hyperscale data centers in the state. She has no faith in meaningless pledges. She is also running for reelection. There could be a relation between these two bits of data, we're just not sure. Maybe we should ask AI. (V)

Poll: Stevens Leads El-Sayed in Key Michigan Primary

A new Detroit News/Glengariff poll in the very important Michigan Democatic Senate primary has a surprising result. Rep. Haley Stevens (D-MI) leads former Wayne County Health Director Abdul El-Sayed 48% to 41%. This is the first poll since Mallory McMorrow dropped out. The race is significant because progressives felt they were on a roll after winning three primaries in deep blue House districts in New York City and two in Colorado. This is a test of a progressive (El-Sayed) vs. a pretty standard liberal (Stevens) in a large swing state. A progressive win here would be a real earthquake. Previous polls have had El-Sayed ahead, but a recent one-on-one debate may have changed that. One bad omen for El-Sayed is that the undecided voters are largely traditional Democrats.

The candidates' supporters have different priorities. El-Sayed voters prioritized "representing my values" and "getting results for Michigan." Stevens' voters prioritized opposing Donald Trump and winning the general election in November. The pollster said that El-Sayed wants to make the race about the direction of the Democratic Party. Stevens wants to make it about the direction of America.

The poll shows that Stevens is strongest with Black voters, noncollege voters, older voters and Metro Detroit voters. El-Sayed is strongest with white voters, college-educated voters, younger voters and Democratic Socialists. Stevens has a modest lead (S+9) on people who have already turned in their absentee ballots and a larger lead among those still holding their absentee ballots (S+27). El-Sayed leads with those planning to vote on Primary Day on August 4 (E+18). (V)

Is Mark Kelly Running for President?

Sen. Mark Kelly (D-AZ) would make an interesting presidential candidate in 2028. As a former Navy pilot, astronaut and current senator from a swing state, he brings a lot to the table. On top of that, he is constantly being attacked by Secretary of Defense Pete Hegseth and is equally constantly fighting back—hard.

Unlike many 2028 pretend wannabes, including the other senator from Arizona, Ruben Gallego (D-AZ), it is not clear if Kelly is serious. The issue is not whether he would be a viable candidate. That is for certain. The issue with him is his wife, former representative Gabby Giffords, who was shot in the head by a fanatic in 2011 while meeting with constituents. The big question is whether she could manage on her own while he is away campaigning for some of 2027 and most of 2028. Only he knows for sure, and maybe not even him.

However, there is a sign that he might be interested. He raised $25 million in Q4 2025 and Q1 2026 combined, which he certainly does not need for a 2028 run for reelection to the Senate. Arizona is one of the states where it is legal to run for the Senate and the presidency at the same time. This haul may indicate a presidential run in his future, both for the money and to show potential competitors what they would be up against if they decide to run against him.

Another thing he is doing that suggests a run is that he has given $10 million to other Senate candidates and committees. If he runs, endorsements from other senators are always useful, and a senator who got reelected in part due to a large donation from Kelly might be inclined to repay the favor. He also gave $2 million to the hapless, cash-strapped DNC, which demonstrates party loyalty. He has also attended fundraisers for Democratic senatorial candidates, including Roy Cooper (NC) and Mary Peltola (AK). He is going to Ohio to help Sherrod Brown next month. All of this builds goodwill within the Party and clearly demonstrates his fundraising prowess. Presidential campaigns are expensive, and it looks like he has what it takes. Kelly will probably finish the year out with more money in the bank than other potential presidential candidates (excepting billionaire Gov. J.B. Pritzker; D-IL).

Of course, if Gallego also throws his hat in the ring, it could be interesting. But there is another state where there are also likely to be two well-known contenders: California. Gov. Gavin Newsom (D-CA) and Kamala Harris are going to do battle there as well.

As a presidential candidate, Kelly has the right stuff. There is his military career, his fundraising prowess, his burning hatred of Donald Trump and Pete Hegseth and his willingness to fight them. And, of course, he is from a swing state that is next door to another swing state (Nevada). If Giffords is well enough or has enough support to allow him to be away for a year, he would be a very formidable candidate. (V)

Accountability Watch

Donald Trump and his cronies are famous for avoiding accountability for their many offenses and crimes. For starters, Trump was convicted of 34 felonies and got: (1) no fine and (2) no prison time. Anyone else so convicted would have gotten at least a fine. Not Trump. The same is true of his cronies. There is no accountability at all. But maybe we are seeing the first signs that there could be some down the line. Consider these cases.

• Trump: Trump was held liable by a jury for sexually assaulting E. Jean Carroll in a New York department store. He appealed the decision and lost. Then he was ordered to pay and appealed again. He lost again. So it was time to pay the piper. Normally, he would just refuse and that would set off another 3 or more years fighting in the courts. But a peculiarity of the appeals process stymied him. To file an appeal in New York State, the defendant has to put the amount of the judgment in an escrow account with the court, to prevent him from not paying and saying: "So sue me." When all the appeals ran out, the judge released the $5.6 million (judgment plus interest) to Carroll. She actually has the money now.
  
  However, before breathing a sigh of relief, she has to deal with a couple of things. First, she has to pay her lawyer, Roberta Kaplan. In a contingency case, the lawyer gets nothing if he or she loses the case, so their payout is big on a win, commonly 30-40% depending on whether there were appeals and if so, how many. Second, judgments for punitive damages are generally considered taxable income. So after paying Kaplan, Carroll might have $3.4 million left. The federal tax bill is probably about $1.2 million, leaving $2.2 million. Depending on her legal residence, Carroll might also owe state tax. But she probably gets to keep something on the order of $2 million.
  
  But this is only for starters. In Carroll's other defamation suit against Trump, the jury awarded Caroll $83 million—this case was for an earlier incident than the one above, but came after the $5 million award, so this jury clearly thought a harsher penalty was necessary. That judgment is still on appeal. If the courts uphold that one, it will really be payday for Carroll and Kaplan.
  
  
• Elon Musk: In 2025, there was a bitterly contested state Supreme Court election in Wisconsin. Elon Musk decided to help the Republican candidate. He tried to goose turnout by handing out $1 million checks to selected voters. He thought that would be cool and get people to vote. Tech bros don't ask whether some action is legal. They just move fast and break things.
  
  The Wisconsin Board of Elections has other ideas about that. They are old fuddie duddies and feel that buying votes, is like, illegal, and that they can do something about it, since there is strong photographic evidence of it as well:
  
  
  
  The Board voted 5-1 to refer the matter to the D.A. of Brown County, where the event took place. The recommended charges are bribery and running an illegal lottery. The D.A. hasn't commented on the case yet. If Musk is indicted, there are two things to note. First, the case will eventually land in the Wisconsin Supreme Court—of which Musk's preferred candidate is not a member because that candidate was crushed in the election. Second, because this is a state case, not a federal case, Donald Trump cannot pardon Musk. It is also possible that Musk's action violated federal law as well, and a future Democratic fuddie-duddy AG could charge him with federal crimes as well.
  
  
• Brendan Carr: FCC Chairman Brendan Carr has a history of carrying Trump's water on mergers, threats and more. One thing he delivered on was the merger of Paramount and Skydance, the former of which is run by David Ellison, the son of Trump's crony Larry Ellison, the founder of Oracle. There was a big party at the Donald J. Trump and John F. Kennedy Center for the Performing Arts to celebrate the merger. Carr got a free ticket to a private skybox to watch it, along with Ellison and other Paramount executives. Those tickets go for $125,000. Receiving kickbacks for shepherding deals is one of those little federal no-nos. This wouldn't be the first time Paramount gave a big gift to Carr and other FCC board members.
  
  Virginia Canter, a government lawyer who worked for four presidents, said: "This is shocking. Pretty disturbing, that's what I would say. I just don't understand what they were thinking." Virginia, maybe they were thinking there is a Santa Claus. At the very least, they were thinking they wouldn't get caught. Having this corruption be thoroughly documented by a report from ProPublica will make it easier for a subsequent AG to go after him.

If the next president is a Democrat, there could be 4 years of investigations of corruption, up and down the line. There is a lot of low-hanging fruit out there. (V)

Freedom Fuel Gas Stations Are Leaking

A mysterious chain of two dozen or so "Freedom Fuel" gas stations has popped up around Philadelphia selling gas at $3.47/Gal. Not $3.46, not $3.48, but $3.47. Get it? If you're not quite clear, note that the gas presumably would have sold for $3.45/gal from 2017-21. Since $3.47 is some 40-50¢ below the market price, someone is obviously subsidizing that as a stunt and losing money in the process. Who? Donald Trump said he knows and it is a private company that is just shaving its profit margin. Experts on gas prices say $3.47 is below the cost price, so someone is doing this to make a point, not to make money.

Politico reporters did some digging and found some information about who is behind this stunt. It is a pair of New Jersey businessmen, one of whom is an assistant coach for the Baltimore Ravens NFL team, who are behind this. Former commodities trader Yoni Gontownik and Ravens senior special teams coach Randy Brown are the ones who signed the certificate of incorporation on June 23, a week before Donald Trump began bleating about it on his bargains-for-all social media site.

Brown has called himself a "proud Trump supporter." He has flirted with running for office as a Republican several times. In addition to his football work, he also runs a scammy title insurance business in New Jersey. Gontownik is a former investment director at a global commodities trading firm, Mercuria. He has hosted fundraisers for Republican candidates. A third New Jersey businessman, Shamikh Kazmi, is also linked to Freedom Fuel. He is the licensed operator at 17 New Jersey gas stations, including five in the Freedom Fuel network. Earlier this year he announced a $60 million plan to open a chain of restaurants, called Yum Grills, at gas stations around Philadelphia. So far, only one is open. Kazmi has been involved in multiple lawsuits in the past, including for taking $667,000 worth of fuel and not paying for it. He has also flouted court orders. He also has failed to pay $700,000 in rent on 17 stations he operates in Florida.

This could be a clue how Freedom Fuel sells below the market price: Steal the fuel and don't pay rent on the stations and suddenly the math works. (V)

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