Cotton, colleagues to DOJ and FTC: Systemic, weaponized leaks violate ethics rules

Washington, D.C. — Senator Tom Cotton (R-Arkansas) today led four of his colleagues in a letter to Department of Justice Inspector General Michael Horowitz and Federal Trade Commissioner Inspector General Andrew Katsaros, demanding an investigation into systemic media leaks. These leaks, all to the same media outlet, resulted in negative headlines about the Biden-Harris administration’s antitrust targets and potentially violated ethics rules.

Co-signers to the letter included Senate Republican Leader Mitch McConnell (R-Kentucky), Senators Thom Tillis (R-North Carolina), Bill Cassidy (R-Louisiana), and Pete Ricketts (R-Nebraska). 

In part, the senators wrote:

“These leaks result in negative headlines about the administration’s targets while the targeted companies have no way to respond, as they haven’t yet seen the potential lawsuits. Both DOJ and FTC have ethics rules that prohibit leaking civil cases before the cases are filed.”

Full text of the letter may be found here and below.

October 24, 2024

The Honorable Michael Horowitz 
United States Department of Justice
Office of the Inspector General
950 Pennsylvania Avenue, NW
Washington, DC 20530

Mr. Andrew Katsaros Inspector General
Federal Trade Commission 

600 Pennsylvania Avenue, NW

Washington, DC 20580

Dear Inspectors General Horowitz and Katsaros,

We write asking you to investigate whether the Department of Justice and the Federal Trade Commission have violated their own ethics rules by systematically leaking potential antitrust cases to a specific media outlet.

Since 2023, Bloomberg News has broken the news in at least twelve instances that DOJ or FTC was “preparing” or “poised” to take legal action before a lawsuit was filed. Indeed, the same journalist reported on eleven of these cases. This pattern strongly suggests that certain officials at DOJ and FTC are intentionally publicizing legal action days or weeks before filing. 

These leaks result in negative headlines about the administration’s targets while the targeted companies have no way to respond, as they haven’t yet seen the potential lawsuits. Both DOJ and FTC have ethics rules that prohibit leaking civil cases before the cases are filed.[*]

Bloomberg News reporting DOJ and FTC antitrust actions before the filing of a lawsuit

1. January 23, 2023: DOJ Poised to Sue Google Over Digital Ad Market Dominance

2. February 23, 2023: DOJ Preps Antitrust Suit to Block Adobe’s $20 Billion Figma Deal

3. May 15, 2023: Amgen’s $28 Billion Horizon Deal Faces Unexpected FTC Hurdle

4. June 29, 2023: Lina Khan Is Coming for Amazon, Armed With an FTC Antitrust Suit

5. October 16, 2023: Real Estate Brokers Pocketing Up to 6% in Fees Draw Antitrust Scrutiny

6. February 20, 2024: FTC, States to Sue Over Kroger-Albertsons Deal Next Week

7. March 20, 2024: Justice Department to Sue Apple for Antitrust Violations

8. April 10, 2024: Nippon Steel Bid to Buy US Steel Gets Extended Antitrust Review

9. April 17, 2024: Tapestry’s $8.5 Billion Capri Deal Faces Planned FTC Lawsuit

10. May 22, 2024: US Justice Department to Seek Breakup of Live Nation-Ticketmaster

11. July 10, 2024: FTC Preparing Suit Against Drug Middlemen Over Insulin Rebates

12. September 23, 2024: Visa Faces Justice Department Antitrust Case on Debit Cards

These leaks aren’t just unethical, but they harm these companies’ employees, shareholders, and others. If the companies have engaged in wrongdoing, by all means the government should try them in a court of law. But the Biden-Harris administration shouldn’t try them in the liberal media. These leaks appear to be simply one more instance of this administration weaponizing the administrative state against politically disfavored opponents and critics, much like DOJ investigating parents at school-board meetings or the FTC targeting Elon Musk and Twitter for insufficient censorship of conservatives.

We urge you to investigate promptly these systematic, unethical, and potentially illegal leaks.

Sincerely,                           

Boozman, Cramer, Capito and colleagues file bicameral amicus brief to overturn FHWA’s unlawful rmissions rule

WASHINGTON – U.S. Senators John Boozman (R-AR), Kevin Cramer (R-ND) and Committee on Environment and Public Works Ranking Member Shelley Moore Capito (R-WV) led 27 of their colleagues in filing a bicameral amicus brief in the U.S. Court of Appeals for the Sixth Circuit opposing a final rule from the Federal Highway Administration (FHWA) that requires state departments of transportation and metropolitan planning organizations to measure greenhouse gas (GHG) emissions on the highway system and set declining targets for those GHG emissions. The brief requests that the Court uphold the April 2024, U.S. District Court decision finding that Congress did not grant the FHWA the authority to issue the rule.

The brief argues Congress explicitly debated providing the FHWA the necessary authority to issue this rule, but decided against doing so in the Infrastructure Investment and Jobs Act. The FHWA then intentionally misconstrued congressional intent and used unrelated statutory authorities to attempt to justify issuing its GHG performance measure rule. The lawmakers also contend the rulemaking is inconsistent with recent Supreme Court decisions paring back executive branch overreach, and that FHWA is ignoring principles of federalism at the expense of state governments to further its own policy agenda.

“Congress considered, and ultimately rejected, providing [FHWA] with the authority to issue a GHG performance measure regulation, but [FHWA] contorted ancillary existing authorities to impose one anyway,” the members argued. “In doing so, [FHWA] impermissibly usurped the Legislative Branch’s authority and promulgated the GHG performance measure without statutory authority delegated by Congress.” 

“Put simply, when [FHWA] established a GHG performance measure regulation, it exceeded the powers Congress authorized. And it did so both at the expense of separation of powers and in violation of the Administrative Procedure Act,” the members continued. 

Senate Republican Leader Mitch McConnell (R-KY) and Senators John Barrasso (R-WY), Mike Braun (R-IN), Katie Britt (R-AL), Ted Cruz (R-TX), Mike Crapo (R-ID), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Cynthia Lummis (R-WY), Roger Marshall, M.D. (R-KS), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Marco Rubio (R-FL), Rick Scott (R-FL), Tim Scott (R-SC), Dan Sullivan (R-AK), John Thune (R-SD), Tommy Tuberville (R-AL) and Roger Wicker (R-MS) – as well as U.S. Representatives Sam Graves (R-MO-06), Chairman of the Transportation and Infrastructure Committee, and Rick Crawford (R-AR-01), Chairman of the Highways and Transit Subcommittee – also cosigned the brief. 

Full text of the amicus brief is available here.

Background:

Shortly after the rule was finalized, 21 state attorneys general, including Arkansas, filed litigation challenging the regulation. The U.S. District Court found the Biden administration rule to be illegal, but FHWA appealed the decision to the Sixth Circuit Court of Appeals and it remains under further consideration. 

In April of this year, the U.S. Senate approved a Congressional Review Act (CRA) joint resolution of disapproval overturning the rule by a vote of 53-47. The bipartisan measure was led by Cramer and cosponsored by Boozman, Ranking Member Capito and dozens of their colleagues.

Cotton, Colleagues to Garland: Investigate schools with ties to Chinese communists

Washington, D.C. — Senator Tom Cotton (R-Arkansas), along with seven of his colleagues, today sent a letter to Attorney General Merrick Garland to urge him to investigate cases of American institutions of higher education having ties to the Chinese Communist Party (CCP). In addition to investigating the current cases, the senators asked AG Garland for written responses on how the Department of Justice is working to mitigate the threat the CCP poses to the U.S. education system.

Senators Pete Ricketts (R-Nebraska), Rick Scott (R-Florida), Eric Schmitt (R-Missouri), Cynthia Lummis (R-Wyoming), Joni Ernst (R-Iowa), Marsha Blackburn (R-Tennessee), and Thom Tillis (R-North Carolina) co-signed the letter.

In part, the senators wrote:

“Undisclosed and unmonitored financial relationships between U.S. academia and the CCP are glaring national security risks. Such relationships leave the U.S. vulnerable to intellectual property theft, improper influence, and even espionage. It is imperative that DOJ take additional steps to swiftly address this concern.”

Full text of the letter may be found here and below.

August 5, 2024 

The Honorable Merrick Garland
U.S. Department of Justice
950 Pennsylvania Ave., N.W.
Washington, DC 20530

Dear Attorney General Garland,

We write regarding reports that American institutions of higher education (IHEs) are failing to disclose financial ties with the Chinese Communist Party (CCP). Efforts to conceal CCP attempts to influence American students and steal intellectual property threaten our national security.

The Department of Justice (DOJ) has disclosed multiple cases where U.S. universities collaborated illegally with the CCP. On July 16, 2024, the U.S. Attorney’s office for the District of Maryland announced that the University of Maryland paid $500,000 to resolve allegations that it violated the False Claims Act by failing to disclose funding from Chinese companies, including Alibaba. On October 2, 2023, the same office announced that Stanford University paid $1.9 million to resolve allegations related to faculty’s ties with the CCP. In both cases, the universities knowingly defrauded federal agencies critical to national security.

Undisclosed and unmonitored financial relationships between U.S. academia and the CCP are glaring national security risks. Such relationships leave the U.S. vulnerable to intellectual property theft, improper influence, and even espionage. It is imperative that DOJ take additional steps to swiftly address this concern.

For those reason, please answer the following questions by September 2, 2024.

1. Has the frequency of IHEs committing False Claims Act violations as result of failing to disclose funding from CCP-affiliated entities increased since January 1, 2020?

2. What is the current assessment of the threats posed to American students and federal research initiatives by CCP involvement?

3. What steps does the DOJ take to mitigate CCP attempts to influence the U.S. education system?

4. How does the DOJ work with the rest of the interagency, including the Department of Defense, to evaluate and mitigate these threats?

Thank you for your prompt attention to this important matter.

Sincerely,

Cotton, Scott, Colleagues introduce bill to sanction Palestinian leadership and institutions that reward terrorism

Washington, D.C. — Senator Tom Cotton (R-Arkansas) and Senator Tim Scott (R-South Carolina) today introduced the PLO and PA Terror Payments Accountability Act, legislation that would impose sanctions on foreign persons and entities that provide payments to Palestinian terrorists and the families of terrorists as part of the Palestine Liberation Organization (PLO) and Palestinian Authority’s (PA) system of terror compensation. 

Senators Ted Cruz (R-Texas), Pete Ricketts (R-Nebraska), Ted Budd (R-North Carolina), Eric Schmitt (R-Missouri), Marco Rubio (R-Florida), Bill Hagerty (R-Tennessee), Kevin Cramer (R-North Dakota), Dan Sullivan (R-Alaska), Rick Scott (R-Florida), John Cornyn (R-Texas), and Lindsey Graham (R-South Carolina) are cosponsoring the legislation. Congressmen Mike Lawler (New York-17) and Doug Lamborn (Colorado-05) are introducing bipartisan companion legislation in the House with 27 cosponsors.

“The Palestinian Authority and the Palestine Liberation Organization continue to support terrorism against Israel by providing hundreds of millions of dollars per year in their reprehensible ‘pay-for-slay’ program. Anti-Semitic Palestinian terrorists know they can expect payment as a reward for killing Israelis and Americans–with thousands of Palestinian terrorists tied to October 7 eligible for these terror payments. Our bill will ensure that the PA, PLO and their institutions that reward acts of terrorism are punished,” said Senator Cotton.

“For years, the Palestinian Authority has incentivized brutal attacks against Israelis—and even American citizens—through its horrific 'pay for slay' policies. Strong words and failed negotiations aren’t enough to stop these acts of terror. We need to actually use the authorities at our disposal to impose real economic pain against those who support and facilitate so-called 'martyr payments,' and I am proud to partner with Senator Cotton and our Republican colleagues to do just that,” said Senator Scott.

Text of the bill may be found here.

The PLO and PA Terror Payments Accountability Act would impose sanctions on:

• Foreign persons who serve as an employee of the PLO and PA that has facilitated the payments, provided payments themselves, or knowingly provided significant financial, technological, or material support and resources as part of the PLO and PA’s system of compensation supporting acts of terrorism. 

• Entities that facilitate the PLO and PA system of compensation supporting acts of terrorism including the Commission of Prisoners and Released Prisoners, the Institute for the Care of the Families of the Martyrs and the Wounded, the Palestine National Fund, and National Association of the Families of the Martyrs of Palestine.

• Foreign financial institutions that participate in a financial transaction that is part of the PLO and PA’s system of compensation supporting acts of terrorism. 

Cotton, Colleagues introduce bill to repeal tax on certain firearm purchases

Washington, D.C. — Senator Tom Cotton (R-Arkansas) today introduced the Repealing Illegal Freedom and Liberty Excises (RIFLE) Act, legislation that would remove a burdensome tax imposed on firearms regulated under the National Firearms Act.

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Senators John Barrasso (R-Wyoming), Marsha Blackburn (R-Tennessee), John Cornyn (R-Texas), Kevin Cramer (R-North Dakota), Steve Daines (R-Montana), Deb Fischer (R-Nebraska), Cynthia Lummis (R-Wyoming), Roger Marshall (R-Kansas), Markwayne Mullin (R-Oklahoma), Pete Ricketts (R-Nebraska), Marco Rubio (R-Florida), and Rick Scott (R-Florida) are co-sponsors of the legislation. Congresswoman Ashley Hinson (Iowa-02) introduced companion legislation in the House.

“Law-abiding Americans who exercise their Second Amendment rights should not be subject to unnecessary taxes and restrictions preventing them from doing so. Passed into law in 1934, the National Firearms Act needs to be amended. Our legislation will remove the red tape that places an undue financial burden on would-be gun owners,” said Senator Cotton.

“The federal government should not be placing financial barriers on the inalienable rights of Americans. This unconstitutional tax on certain firearm purchases is a direct violation of the Second Amendment and must be repealed. As the Biden Administration and Democrats push proposals that unfairly target law-abiding gun owners, I will continue to stand up for Iowans’ right to keep and bear arms,” said Congresswoman Hinson.

Text of the legislation may be found here.

Background:

• The 1934 National Firearms Act (NFA) regulates short-barreled shotguns and rifles, fully automatic firearms, suppressors, and a catchall category of explosives. In addition to background checks and registration, NFA regulated items have a $200 tax.

• The ATF has acknowledged the tax was intended “to curtail, if not prohibit, transactions” of firearms. The $200 tax, unchanged since 1934, is equivalent to $4,648 in today’s dollars.

• Since 2018, ownership of NFA regulated items have grown by more than 250% as more sportsmen, shooters and firearm enthusiasts exercise their Second Amendment right.

• The RIFLE Act does not modify the current checks and registration; it solely removes the federally mandated financial burden on law-abiding gun owners.

• The legislation is endorsed by the National Rifle Association and the National Shooting Sports Foundation.