1 00:00:02,759 --> 00:00:07,000 Speaker 1: This is Bloomberg Law with June Grossel from Bloomberg Radio. 2 00:00:08,800 --> 00:00:13,200 Speaker 1: Anxious waiting for federal workers at seventeen agencies now that 3 00:00:13,280 --> 00:00:16,320 Speaker 1: the Supreme Court has given the green light to President 4 00:00:16,360 --> 00:00:20,000 Speaker 1: Trump to move ahead with plans to dramatically reduce the 5 00:00:20,040 --> 00:00:24,119 Speaker 1: size of the federal government with mass layoffs, State Department 6 00:00:24,200 --> 00:00:28,320 Speaker 1: spokesperson Tammy Bruce says the Department is now moving to 7 00:00:28,480 --> 00:00:33,280 Speaker 1: implement the layoffs. It will happen quickly. This is not 8 00:00:33,440 --> 00:00:36,080 Speaker 1: going to be an extended wait for people who are 9 00:00:36,600 --> 00:00:39,920 Speaker 1: listening and watching in this building or fellow Americans at 10 00:00:39,960 --> 00:00:42,760 Speaker 1: home and around the world. This will happen quickly. This 11 00:00:42,880 --> 00:00:47,320 Speaker 1: also means new turmoil for lower courts and federal workers 12 00:00:47,360 --> 00:00:51,880 Speaker 1: in challenges to Trump's February eleventh executive order. My guest 13 00:00:51,960 --> 00:00:56,160 Speaker 1: is Jonathan Adler, a professor at William and Mary Law School. Jonathan, 14 00:00:56,160 --> 00:00:59,720 Speaker 1: what's your take on the Supreme Court's order on Tuesday 15 00:01:00,080 --> 00:01:03,320 Speaker 1: allowing Trump to move ahead with mass layoffs. 16 00:01:03,760 --> 00:01:07,279 Speaker 2: I think the Supreme Court's decision to stay the District 17 00:01:07,319 --> 00:01:10,480 Speaker 2: Court's order was largely based on the fact that the 18 00:01:10,520 --> 00:01:15,200 Speaker 2: court saw this as a very narrow and limited question. Basically, 19 00:01:15,480 --> 00:01:19,160 Speaker 2: what was that issue was the lawfulness of an executive 20 00:01:19,240 --> 00:01:24,959 Speaker 2: order directing agencies to develop plans to reduce staffing and 21 00:01:25,240 --> 00:01:28,400 Speaker 2: implement reductions in force. And as we've seen in a 22 00:01:28,480 --> 00:01:32,000 Speaker 2: lot of context, it can be very hard to challenge 23 00:01:32,160 --> 00:01:35,560 Speaker 2: a presidential executive order, and it can be particularly hard 24 00:01:35,640 --> 00:01:39,600 Speaker 2: to enjoin an executive order that is largely telling other 25 00:01:39,680 --> 00:01:42,680 Speaker 2: parts of the federal government what sorts of things they 26 00:01:42,720 --> 00:01:44,880 Speaker 2: should be doing or what sorts of plans to make. 27 00:01:45,000 --> 00:01:47,840 Speaker 2: So I think the reason eight justices thought that there 28 00:01:47,960 --> 00:01:51,920 Speaker 2: was a stay justified in this case is because, at heart, 29 00:01:52,040 --> 00:01:55,440 Speaker 2: that was the question before them. It was whether this 30 00:01:55,640 --> 00:02:00,000 Speaker 2: executive order and the accompanying memorandum to the federal bureaucracy 31 00:02:00,240 --> 00:02:04,240 Speaker 2: saying developed plans for reducing force could be enjoined, and 32 00:02:04,320 --> 00:02:09,079 Speaker 2: didn't really implicate whether or not any specific agencies plan 33 00:02:09,520 --> 00:02:13,560 Speaker 2: or reductions in force and for other changes would itself 34 00:02:13,639 --> 00:02:17,520 Speaker 2: be lawful, and viewed in that narrow way, I think 35 00:02:17,600 --> 00:02:21,120 Speaker 2: the question before the court struck most of the justices 36 00:02:21,800 --> 00:02:27,040 Speaker 2: as fairly straightforward and relatively easy, because it was just 37 00:02:27,160 --> 00:02:31,760 Speaker 2: about the justiciability of challenging and enjoining the executive order. 38 00:02:31,800 --> 00:02:35,120 Speaker 1: At this point in time, would these kinds of challenges 39 00:02:35,280 --> 00:02:39,720 Speaker 1: to firings at an agency, would that conventionally be done 40 00:02:40,440 --> 00:02:42,040 Speaker 1: agency by agency? 41 00:02:42,520 --> 00:02:45,000 Speaker 2: Well, in general, I mean there's two things here. One 42 00:02:45,080 --> 00:02:47,639 Speaker 2: is that and we've seen this with lots of executive 43 00:02:47,720 --> 00:02:51,280 Speaker 2: orders over the last twenty years that direct agencies across 44 00:02:51,320 --> 00:02:54,360 Speaker 2: the board to engage in some sort of behavior, which is, 45 00:02:54,440 --> 00:02:57,120 Speaker 2: as an initial matter, the president is not an agency. 46 00:02:57,160 --> 00:03:00,000 Speaker 2: For purposes of the Administrative Procedure Act speaking, an injunction 47 00:03:00,080 --> 00:03:03,560 Speaker 2: against the President is at the very least disfavored, and 48 00:03:03,639 --> 00:03:07,640 Speaker 2: so as an initial matter, the views from court and 49 00:03:07,680 --> 00:03:10,880 Speaker 2: the view of most deppellate courts has been you have 50 00:03:11,000 --> 00:03:16,320 Speaker 2: to challenge an individual agency action that is following the 51 00:03:16,360 --> 00:03:20,480 Speaker 2: president's direction. You don't challenge the president's direction. So, just 52 00:03:20,520 --> 00:03:23,639 Speaker 2: to give an example, during the Bide deministration, there was 53 00:03:23,680 --> 00:03:28,120 Speaker 2: an executive order directing agencies with responsibilities that relate the 54 00:03:28,160 --> 00:03:32,000 Speaker 2: climate change to incorporate a particular social cost of carbon, 55 00:03:32,040 --> 00:03:35,560 Speaker 2: a particular estimate of the impacts of climate change in 56 00:03:35,920 --> 00:03:38,960 Speaker 2: the various decisions they make, whether that's regulations they issue 57 00:03:39,360 --> 00:03:41,840 Speaker 2: or whether they issue permits for oil and gas exploration 58 00:03:42,000 --> 00:03:44,600 Speaker 2: or for other things. And a bunch of folks tried 59 00:03:44,600 --> 00:03:47,440 Speaker 2: to challenge that, including the State of Louisiana, and what 60 00:03:47,520 --> 00:03:51,480 Speaker 2: the appellate courts ultimately concluded, I think correctly, is you 61 00:03:51,560 --> 00:03:55,800 Speaker 2: can't challenge the executive order that says, insofar as is 62 00:03:55,800 --> 00:04:00,440 Speaker 2: consistent with law, incorporate the following cost of carbon. We 63 00:04:00,480 --> 00:04:04,360 Speaker 2: need a specific agency action, so a specific rulemaking, a 64 00:04:04,520 --> 00:04:08,760 Speaker 2: specific permit denial, a specific action of some sort that 65 00:04:09,120 --> 00:04:13,640 Speaker 2: implements and follows that instruction to challenge. So similarly, here 66 00:04:14,120 --> 00:04:17,400 Speaker 2: it may well be that the reorganization plan or the 67 00:04:17,600 --> 00:04:21,719 Speaker 2: reduction enforced plan of a particular agency is unlawful, but 68 00:04:22,120 --> 00:04:24,040 Speaker 2: that is what will have to be challenged, and that 69 00:04:24,160 --> 00:04:29,960 Speaker 2: necessarily means that litigants that are affected by specific agency 70 00:04:29,960 --> 00:04:34,080 Speaker 2: reorganizations or specific layoffs in particular agencies will have to 71 00:04:34,160 --> 00:04:38,080 Speaker 2: challenge those discreetly. But there's a second complication that I 72 00:04:38,120 --> 00:04:42,200 Speaker 2: think the court is also cognizant of, which is generally 73 00:04:42,440 --> 00:04:44,720 Speaker 2: and another planets will be trying to figure out ways 74 00:04:44,760 --> 00:04:48,760 Speaker 2: around this. But generally courts have been told to consider 75 00:04:49,040 --> 00:04:52,880 Speaker 2: challenges to things like layoffs after the fact and through 76 00:04:53,000 --> 00:04:56,840 Speaker 2: other mechanisms, and not through suits seeking to enjoin or 77 00:04:56,839 --> 00:04:59,520 Speaker 2: prevent the layoffs in the first place. That is, to say, 78 00:04:59,560 --> 00:05:04,280 Speaker 2: an employeoyee who is terminated unlawfully has claims that an 79 00:05:04,320 --> 00:05:07,760 Speaker 2: employee can bring for back pay and for compensation and 80 00:05:07,839 --> 00:05:10,919 Speaker 2: the like, And, as the DC Circuit has concluded in 81 00:05:10,960 --> 00:05:15,640 Speaker 2: a somewhat similar case, that is generally what development statute 82 00:05:16,120 --> 00:05:20,440 Speaker 2: expects to happen, rather than suing ahead of time to 83 00:05:20,520 --> 00:05:24,240 Speaker 2: try in either a stop agencies across the board from 84 00:05:24,240 --> 00:05:27,120 Speaker 2: doing this sort of thing, or even be trying to 85 00:05:27,160 --> 00:05:30,960 Speaker 2: stop an agency from beginning to implement the plan before 86 00:05:31,120 --> 00:05:32,240 Speaker 2: it actually takes effect. 87 00:05:32,720 --> 00:05:37,359 Speaker 1: In separate lawsuits, judges have blocked nearly ten thousand layoffs 88 00:05:37,360 --> 00:05:40,080 Speaker 1: at the Department of Health and Human Services and at 89 00:05:40,120 --> 00:05:44,920 Speaker 1: about thirteen hundred layoffs at the Education Department. Are those 90 00:05:44,960 --> 00:05:48,920 Speaker 1: proceeding the way you're supposed to proceed? Do those injunctions 91 00:05:49,040 --> 00:05:50,560 Speaker 1: remain well? 92 00:05:50,640 --> 00:05:53,600 Speaker 2: For the time being, at least those injunctions remain. One 93 00:05:54,040 --> 00:05:57,680 Speaker 2: unfortunate aspect of the Supreme Court dealing with these sorts 94 00:05:57,720 --> 00:06:00,720 Speaker 2: of questions through orders on the Emerge Agency docket or 95 00:06:00,720 --> 00:06:03,640 Speaker 2: shadow docket, or whatever we're supposed to call it these days, 96 00:06:03,800 --> 00:06:05,880 Speaker 2: is that the lack of an opinion giving us an 97 00:06:05,920 --> 00:06:10,680 Speaker 2: explanation makes it unclear which of the various arguments the 98 00:06:10,760 --> 00:06:14,600 Speaker 2: Court found most persuasive orders relying upon the most As 99 00:06:14,600 --> 00:06:18,760 Speaker 2: I mentioned, the Trump administration raised both brought arguments against 100 00:06:18,760 --> 00:06:22,560 Speaker 2: the justiciability of a challenge to an executive order in 101 00:06:22,640 --> 00:06:26,120 Speaker 2: the abstract, as well as claims about whether or not 102 00:06:26,720 --> 00:06:30,640 Speaker 2: you can challenge layoffs other than after the fact in 103 00:06:30,920 --> 00:06:34,240 Speaker 2: suits for things like compensation or back pay. Because the 104 00:06:34,279 --> 00:06:37,680 Speaker 2: Court didn't tell us which of those or whether both 105 00:06:37,680 --> 00:06:40,560 Speaker 2: of those arguments were persuasive to a majority of the justices, 106 00:06:41,160 --> 00:06:45,920 Speaker 2: we don't entirely know how this applies to the other 107 00:06:46,000 --> 00:06:49,080 Speaker 2: suits that are out there. But insofar as other suits 108 00:06:49,200 --> 00:06:54,200 Speaker 2: are focused more narrowly or specifically on what particular agencies 109 00:06:54,240 --> 00:06:59,159 Speaker 2: are doing under the statutes that are applicable to those agencies, 110 00:06:59,560 --> 00:07:02,520 Speaker 2: and in so far as the plaintiffs are able to 111 00:07:02,880 --> 00:07:06,320 Speaker 2: identify particular layoffs that are going to be happening at 112 00:07:06,320 --> 00:07:10,480 Speaker 2: a particular agency on a particular schedule, where it's not speculative, 113 00:07:10,560 --> 00:07:13,280 Speaker 2: but you can actually identify this is what's going to happen, 114 00:07:13,320 --> 00:07:15,680 Speaker 2: and it's going to happen at a date certain or 115 00:07:15,720 --> 00:07:19,920 Speaker 2: relatively soon, then those cases might be distinguishable and might 116 00:07:20,000 --> 00:07:24,400 Speaker 2: be more consistent with the sources of constraints that motivated 117 00:07:24,400 --> 00:07:26,840 Speaker 2: the court to stay this particular decision. 118 00:07:27,080 --> 00:07:32,520 Speaker 1: Last month, the Trump administration filed an emergency appeal of 119 00:07:32,680 --> 00:07:36,560 Speaker 1: the judges order that blocked thirteen hundred layoffs in the 120 00:07:36,720 --> 00:07:40,760 Speaker 1: Education Department. But the Supreme Court hasn't acted on that yet. 121 00:07:41,000 --> 00:07:44,280 Speaker 1: So when they act on that, will we perhaps learn more? 122 00:07:44,840 --> 00:07:47,360 Speaker 2: Perhaps, I mean, I certainly hope. So. I mean, on 123 00:07:47,400 --> 00:07:50,640 Speaker 2: the one hand, the court is dealing with lots of issues, 124 00:07:50,680 --> 00:07:53,240 Speaker 2: and we know that in the term it just completed, 125 00:07:53,280 --> 00:07:55,880 Speaker 2: there were multiple opinions that banned one hundred pages. So 126 00:07:56,160 --> 00:07:58,560 Speaker 2: it's not as if they're not doing other things. But 127 00:07:58,840 --> 00:08:01,080 Speaker 2: it would be beneficial if they took at least a 128 00:08:01,080 --> 00:08:05,360 Speaker 2: little bit of time to provide more explanation of their decisions. 129 00:08:05,400 --> 00:08:07,640 Speaker 2: So in a case like this, we got to paragraph 130 00:08:07,720 --> 00:08:10,960 Speaker 2: from Justice Soda Mayor explaining why she joined the court 131 00:08:11,640 --> 00:08:15,600 Speaker 2: and noting, as I said that daying an injunction against 132 00:08:15,640 --> 00:08:19,200 Speaker 2: the executive order doesn't mean that specific actions by specific 133 00:08:19,280 --> 00:08:22,600 Speaker 2: agencies cannot still be challenged. She wrote that trust for herself, 134 00:08:22,760 --> 00:08:26,240 Speaker 2: but that at the very least means that these other 135 00:08:26,280 --> 00:08:29,400 Speaker 2: cases that are focused on individual agencies and the specific 136 00:08:29,440 --> 00:08:33,040 Speaker 2: plans that individual agencies are likely to be evaluated separately 137 00:08:33,200 --> 00:08:35,679 Speaker 2: and the fact that the Supreme Court did not summarily 138 00:08:35,880 --> 00:08:39,600 Speaker 2: act on these other applications at the same time as 139 00:08:39,600 --> 00:08:42,600 Speaker 2: it did this case suggests that at least some justices 140 00:08:42,960 --> 00:08:46,560 Speaker 2: recognize the difference between an order in joining the executive 141 00:08:46,679 --> 00:08:49,560 Speaker 2: order and enjoining what the executive branch does across the board, 142 00:08:50,000 --> 00:08:53,200 Speaker 2: with an order that enjoins what a specific agency is 143 00:08:53,280 --> 00:08:55,680 Speaker 2: doing or is planning to do, and at the very 144 00:08:55,760 --> 00:09:00,520 Speaker 2: least that implicates the more specific questions and is more 145 00:09:00,679 --> 00:09:02,600 Speaker 2: likely to be the sort of claim that a district 146 00:09:02,640 --> 00:09:03,800 Speaker 2: court can appropriately hear. 147 00:09:04,360 --> 00:09:08,800 Speaker 1: Now with regard to another Supreme Court decision involving Trump's 148 00:09:08,800 --> 00:09:13,720 Speaker 1: executive order ending birthright citizenship, where the Court limited the 149 00:09:13,800 --> 00:09:17,920 Speaker 1: power of judges to issue nationwide injunctions, today a federal 150 00:09:18,040 --> 00:09:22,960 Speaker 1: judge in New Hampshire issued a preliminary injunction blocking Trump's 151 00:09:22,960 --> 00:09:27,080 Speaker 1: executive order from taking effect anywhere in the United States 152 00:09:27,600 --> 00:09:32,199 Speaker 1: and certifying a class action that includes all US born 153 00:09:32,360 --> 00:09:37,520 Speaker 1: children or future children whose automatic citizenship could be jeopardized 154 00:09:37,640 --> 00:09:41,520 Speaker 1: by that executive order. Is bringing a class action like 155 00:09:41,600 --> 00:09:44,800 Speaker 1: this what the Supreme Court said to do, or at 156 00:09:44,880 --> 00:09:47,000 Speaker 1: least suggested doing, well. 157 00:09:46,840 --> 00:09:50,840 Speaker 2: It's certainly something the Supreme Court acknowledged could happen, and 158 00:09:51,320 --> 00:09:55,040 Speaker 2: insofar as it has nationwide effect, if the class was 159 00:09:55,080 --> 00:09:58,240 Speaker 2: properly certified under the federal rules of civil procedure, then 160 00:09:58,320 --> 00:10:01,000 Speaker 2: this would be in line with what a majority of 161 00:10:01,040 --> 00:10:03,839 Speaker 2: the Supreme Court said should happen. I haven't had a 162 00:10:03,880 --> 00:10:06,640 Speaker 2: chance to read the specifics of this judge's order, but 163 00:10:06,720 --> 00:10:09,680 Speaker 2: insofar as the judge or identified a particular class of 164 00:10:09,760 --> 00:10:13,760 Speaker 2: similarly situated parties that are to be affected by this 165 00:10:13,880 --> 00:10:17,160 Speaker 2: executive order in the same way, and you know it's 166 00:10:17,160 --> 00:10:21,040 Speaker 2: in the same timeframe, it is at least a more 167 00:10:21,160 --> 00:10:25,720 Speaker 2: direct and legally grounded way of joining what the federal 168 00:10:25,760 --> 00:10:28,679 Speaker 2: government has said it's going to do than the use 169 00:10:28,720 --> 00:10:33,000 Speaker 2: of a so called universal injunction, in part because by 170 00:10:33,120 --> 00:10:37,439 Speaker 2: identifying and certifying a class, the Court is still limiting 171 00:10:37,440 --> 00:10:40,920 Speaker 2: the relief it is providing two litigants that are properly 172 00:10:40,960 --> 00:10:43,679 Speaker 2: before the court. Now. I am sure the Trump administration 173 00:10:44,240 --> 00:10:47,680 Speaker 2: will challenge the class certification here and claim that perhaps 174 00:10:47,679 --> 00:10:50,000 Speaker 2: that the class was too broad, or that there are 175 00:10:50,000 --> 00:10:53,480 Speaker 2: other problems with the basis for certification, and this could 176 00:10:53,520 --> 00:10:57,200 Speaker 2: well end up back at the Supreme Court. I also suspect, though, 177 00:10:57,240 --> 00:10:59,520 Speaker 2: that at this point there are likely to be five 178 00:10:59,640 --> 00:11:02,920 Speaker 2: justices that are ready to proceed to the merits of 179 00:11:02,920 --> 00:11:06,840 Speaker 2: this question. And I think, unlike in a lot of 180 00:11:06,840 --> 00:11:10,559 Speaker 2: these cases where the Trump administration has had strong procedural 181 00:11:10,720 --> 00:11:13,719 Speaker 2: arguments or kind of formalistic arguments about the exercise of 182 00:11:13,800 --> 00:11:16,840 Speaker 2: jurisdiction as a way of pushing back against some of 183 00:11:16,880 --> 00:11:20,560 Speaker 2: these district court orders on the merits, the Trump Administration's 184 00:11:20,559 --> 00:11:23,559 Speaker 2: Birthright Citizenship executive Order will be very hard to defend. 185 00:11:24,200 --> 00:11:29,400 Speaker 1: There are parallel cases seeking class action status and nationwide injunctions. 186 00:11:29,520 --> 00:11:33,640 Speaker 1: A judge in Maryland is weighing a similar case. Since 187 00:11:33,679 --> 00:11:37,880 Speaker 1: the New Hampshire judge has certified this class, doesn't that 188 00:11:37,960 --> 00:11:41,360 Speaker 1: stop another judge from certifying the same class. 189 00:11:42,160 --> 00:11:44,360 Speaker 2: I'd want to look and see what the requested class 190 00:11:44,559 --> 00:11:46,880 Speaker 2: is in these other cases, and the extent to which 191 00:11:46,880 --> 00:11:49,079 Speaker 2: there is overlap, or the extent to which there are 192 00:11:49,559 --> 00:11:53,520 Speaker 2: potential classes that would be in addition to what's here. Certainly, 193 00:11:53,800 --> 00:11:58,079 Speaker 2: intents are a very large class of people essentially affected 194 00:11:58,360 --> 00:12:03,520 Speaker 2: by zip Administration's Birthright Citizenship Order, but there are other 195 00:12:03,600 --> 00:12:07,000 Speaker 2: groups of people that could be affected as well, other 196 00:12:07,080 --> 00:12:10,360 Speaker 2: people whose citizenship or lawful presence in the country is 197 00:12:10,400 --> 00:12:13,440 Speaker 2: implicated people whose ability to make life plans are affected 198 00:12:13,440 --> 00:12:17,760 Speaker 2: by the executive order, perhaps even institutions that rely upon 199 00:12:17,960 --> 00:12:22,680 Speaker 2: the ability to hire or by benefits to non citizens. 200 00:12:22,720 --> 00:12:25,280 Speaker 2: There may be other groups that could also be affected 201 00:12:25,280 --> 00:12:27,880 Speaker 2: by the executive order, and so it's quite possible you 202 00:12:27,880 --> 00:12:31,280 Speaker 2: could see requests for classes that are somewhat different. But 203 00:12:31,360 --> 00:12:34,680 Speaker 2: I would not be at all surprised to see efforts 204 00:12:34,720 --> 00:12:37,800 Speaker 2: to perhaps consolidate some of these cases. But again, I 205 00:12:37,840 --> 00:12:40,160 Speaker 2: also think now that there is a class certified, it's 206 00:12:40,240 --> 00:12:43,680 Speaker 2: quite possible that the Supreme Court might be interested in 207 00:12:43,960 --> 00:12:47,520 Speaker 2: finally reaching the merits of this question. And as I noted, 208 00:12:47,520 --> 00:12:49,720 Speaker 2: I think while we've seen in many of these cases 209 00:12:50,000 --> 00:12:53,040 Speaker 2: the Trump administration have strong procedural or jurisdictional arguments that 210 00:12:53,080 --> 00:12:55,840 Speaker 2: it could make, this is a case where on the merits, 211 00:12:55,840 --> 00:12:58,280 Speaker 2: I think the Trump administration really has a bad hand 212 00:12:58,280 --> 00:12:58,720 Speaker 2: to play. 213 00:12:58,880 --> 00:13:01,640 Speaker 1: But why does it take the court so long to 214 00:13:01,720 --> 00:13:02,680 Speaker 1: reach the merits? 215 00:13:03,240 --> 00:13:03,679 Speaker 2: They had the. 216 00:13:03,640 --> 00:13:07,840 Speaker 1: Birthright citizenship question before them and didn't decide it. 217 00:13:08,440 --> 00:13:10,720 Speaker 2: I happen to be sympathetic to the argument that these 218 00:13:10,800 --> 00:13:14,840 Speaker 2: jurisdictional issues matter. I think that the courts, the Streme 219 00:13:14,840 --> 00:13:18,960 Speaker 2: Court in particular, believes that these jurisdictional issues matter in 220 00:13:19,000 --> 00:13:21,920 Speaker 2: some respects. I think the attitude of several of the 221 00:13:22,080 --> 00:13:26,840 Speaker 2: justices is just because the executive is reaching beyond the 222 00:13:26,880 --> 00:13:30,280 Speaker 2: scope of its power, we the courts should not do 223 00:13:30,320 --> 00:13:33,240 Speaker 2: that as well. Rather, the president's willingness to push the 224 00:13:33,280 --> 00:13:37,240 Speaker 2: boundaries of executive authority should not justify the judges or 225 00:13:37,400 --> 00:13:40,680 Speaker 2: justices willingness to push the boundaries of judicial authority. And 226 00:13:40,720 --> 00:13:43,000 Speaker 2: I think what that has meant is that there are 227 00:13:43,000 --> 00:13:47,480 Speaker 2: some justices that are very sympathetic to claims that individual 228 00:13:47,480 --> 00:13:50,080 Speaker 2: district courts have gotten a bit over their skis or 229 00:13:50,120 --> 00:13:53,360 Speaker 2: have been too aggressive, but also recognizing that that is 230 00:13:53,400 --> 00:13:58,360 Speaker 2: wholly distinct from the underlying merits questions, and that means 231 00:13:58,559 --> 00:14:01,360 Speaker 2: that the merits aren't reached as quickly perhaps, but it 232 00:14:01,400 --> 00:14:03,480 Speaker 2: does allow the court to say, look, we're playing by 233 00:14:03,520 --> 00:14:06,280 Speaker 2: the rules. We are making sure that we're dotting our 234 00:14:06,320 --> 00:14:08,720 Speaker 2: eyes and crossing our teas on questions of jurisdiction and 235 00:14:08,720 --> 00:14:11,600 Speaker 2: on questions of what issues are properly before us, properly 236 00:14:11,640 --> 00:14:13,960 Speaker 2: before the courts, so that if and when the Trump 237 00:14:13,960 --> 00:14:16,480 Speaker 2: administration loses on the merits, they have no one to 238 00:14:16,480 --> 00:14:19,600 Speaker 2: blame but themselves. In terms of making legal claims that 239 00:14:19,800 --> 00:14:21,560 Speaker 2: at the end of the day, we're not meritorious. 240 00:14:21,640 --> 00:14:24,320 Speaker 1: Maybe you will see them taking the case next term. 241 00:14:24,560 --> 00:14:28,720 Speaker 1: Thanks so much, Jonathan. That's Professor Jonathan Adler of William 242 00:14:28,720 --> 00:14:31,640 Speaker 1: and Mary Law School coming up next on The Bloomberg 243 00:14:31,720 --> 00:14:36,720 Speaker 1: Law Show. Once again, top Justice Department officials are overruling 244 00:14:36,800 --> 00:14:40,400 Speaker 1: line prosecutors giving a deal to the former governor of 245 00:14:40,400 --> 00:14:44,200 Speaker 1: Puerto Rico and a banker with ties to the Trump administration. 246 00:14:44,760 --> 00:14:49,760 Speaker 1: You're listening to Bloomberg. A federal judge was troubled by 247 00:14:49,800 --> 00:14:55,040 Speaker 1: the Justice Departments about face giving leniency to Puerto Rico's 248 00:14:55,080 --> 00:14:59,440 Speaker 1: former governor and a billionaire banker shortly before a bribery 249 00:14:59,480 --> 00:15:03,920 Speaker 1: trial with schedule to begin. Former Governor Juanda Vasquez and 250 00:15:04,040 --> 00:15:08,240 Speaker 1: bank owner Julio Herrera Velatini both have connections to the 251 00:15:08,280 --> 00:15:12,240 Speaker 1: Trump administration. Each based up to twenty years in prison 252 00:15:12,360 --> 00:15:16,040 Speaker 1: if convicted of felony, bribery and wire fraud, but they 253 00:15:16,080 --> 00:15:20,200 Speaker 1: can now avoid any prison time after a directive from 254 00:15:20,520 --> 00:15:24,160 Speaker 1: Justice Department leadership allowed them each to plead to a 255 00:15:24,200 --> 00:15:29,119 Speaker 1: single misdemeanor charge. That's according to Bloomberg's sources. As reported 256 00:15:29,200 --> 00:15:33,320 Speaker 1: in an exclusive story by Ben Penn, Senior Justice Department 257 00:15:33,400 --> 00:15:37,200 Speaker 1: reporter at Bloomberg Law. He joins me now ben tell 258 00:15:37,280 --> 00:15:41,120 Speaker 1: Us about the bribery case against Vasquez and Velatini. 259 00:15:41,640 --> 00:15:45,440 Speaker 3: So in August of twenty twenty two, got former governor 260 00:15:45,520 --> 00:15:50,600 Speaker 3: Juana Vascaz and the banker you reference, Julio Herrera Bellatini, 261 00:15:50,920 --> 00:15:53,640 Speaker 3: along with a former FBI agent who was serving as 262 00:15:53,800 --> 00:15:57,800 Speaker 3: an alleged intermediary between the two. They were all charged 263 00:15:58,000 --> 00:16:04,080 Speaker 3: with seven felony count including honest services fraud, bribery, wire 264 00:16:04,160 --> 00:16:10,480 Speaker 3: fraud related to a conspiracy that they allegedly reached. This 265 00:16:10,640 --> 00:16:15,160 Speaker 3: deal in which the governor would terminate Puerto Rico's financial 266 00:16:15,160 --> 00:16:19,360 Speaker 3: regulator in exchange for receiving about three hundred thousand dollars 267 00:16:19,440 --> 00:16:23,320 Speaker 3: in campaign contributions, and this regulator was in the midst 268 00:16:23,360 --> 00:16:28,680 Speaker 3: of scrutinizing about ten billion dollars in transactions for Herrera's bank, 269 00:16:28,760 --> 00:16:32,560 Speaker 3: Bank Credito, which is an international bank that had rations 270 00:16:32,560 --> 00:16:35,960 Speaker 3: in Puerto Rico. So, as part of the deal, as 271 00:16:36,120 --> 00:16:40,000 Speaker 3: originally alleged, not only would they fire the regulator in 272 00:16:40,000 --> 00:16:42,840 Speaker 3: the midst of this investigation, but Herrera, the bank owner, 273 00:16:42,840 --> 00:16:45,600 Speaker 3: would then have the ability to replace him with his 274 00:16:45,760 --> 00:16:49,560 Speaker 3: hand if the successor, and that is what went down. 275 00:16:49,560 --> 00:16:52,280 Speaker 3: Of course, those allegations have been denied from the get go, 276 00:16:52,440 --> 00:16:56,600 Speaker 3: and we've had three years of pretty intensive litigation and 277 00:16:56,960 --> 00:16:59,760 Speaker 3: the parties were all gearing up for trial later. 278 00:16:59,800 --> 00:17:02,520 Speaker 1: This just say three hundred thousand dollars and I'll put 279 00:17:02,520 --> 00:17:04,959 Speaker 1: that in. We'll put that in there. Sure tell us 280 00:17:05,000 --> 00:17:07,959 Speaker 1: about the connections to Trump. 281 00:17:08,240 --> 00:17:11,119 Speaker 3: So the connections come in two forms. First, you have 282 00:17:11,680 --> 00:17:14,639 Speaker 3: Vascas had endorsed Trump in twenty twenty when he was 283 00:17:14,720 --> 00:17:17,439 Speaker 3: running for reelection. She was the governor at that time, 284 00:17:17,640 --> 00:17:22,080 Speaker 3: and her endorsement was seen as helpful for Trump's fability 285 00:17:22,119 --> 00:17:25,960 Speaker 3: to court Latino voters heading up to November. And then 286 00:17:26,400 --> 00:17:30,879 Speaker 3: the other connection is Bellucini has hired as part of 287 00:17:30,880 --> 00:17:35,280 Speaker 3: a powerhouse legal defense team. Christopher Kyle Kaui's was Trump's 288 00:17:35,320 --> 00:17:39,760 Speaker 3: personal attorney during both the mar A Lago malassified Documents 289 00:17:39,880 --> 00:17:43,600 Speaker 3: indictment brought by Special Counsel Jack Smith and the New 290 00:17:43,680 --> 00:17:47,360 Speaker 3: York Civil fraud litigation. So Kai's is somebody who now 291 00:17:47,400 --> 00:17:51,480 Speaker 3: remains a defense attorney and is seen as having from 292 00:17:51,520 --> 00:17:53,879 Speaker 3: my reporting, still has quite a bit of connections in 293 00:17:53,920 --> 00:17:55,320 Speaker 3: the White House well. 294 00:17:55,359 --> 00:18:00,000 Speaker 1: His former co council in the Trump Classified Documents case. 295 00:18:00,720 --> 00:18:04,840 Speaker 1: Todd blanche is now the Deputy Attorney General, and your 296 00:18:04,880 --> 00:18:08,280 Speaker 1: sources told you that Kuyes took the case up the 297 00:18:08,400 --> 00:18:10,639 Speaker 1: chain to the Deputy Attorney General. 298 00:18:11,160 --> 00:18:13,800 Speaker 3: Kyles was part of a team of lawyers who began 299 00:18:13,960 --> 00:18:17,280 Speaker 3: arguing early in this administration when Trump came back to 300 00:18:17,680 --> 00:18:21,280 Speaker 3: the White House and that this investigation was a case 301 00:18:21,480 --> 00:18:25,520 Speaker 3: of weaponized government from the left. And that's an argument 302 00:18:25,560 --> 00:18:28,280 Speaker 3: that at a minimum, we can say gained a receptive 303 00:18:28,320 --> 00:18:32,119 Speaker 3: audience at the upper echelons of the Justice Department. They 304 00:18:32,119 --> 00:18:35,720 Speaker 3: didn't necessarily endorse that this was an example of weaponization, 305 00:18:35,880 --> 00:18:38,800 Speaker 3: but somebody from the Deputy Attorney General's office, at a 306 00:18:38,840 --> 00:18:42,760 Speaker 3: meeting that was held at DOJ headquarters in Washington, that 307 00:18:42,880 --> 00:18:46,080 Speaker 3: was attended by the US Attorney in Puerto Rico and 308 00:18:46,160 --> 00:18:49,640 Speaker 3: a prosecutor based in Washington, there was an order basically, 309 00:18:49,680 --> 00:18:51,639 Speaker 3: after both sides had a chance to make their case, 310 00:18:52,040 --> 00:18:55,600 Speaker 3: the deput Attorney General's office demanded that they reach a 311 00:18:55,640 --> 00:18:59,000 Speaker 3: deal that this case doesn't go to trial. And as 312 00:18:59,040 --> 00:19:04,119 Speaker 3: a result, I really gave the defense councils an upper 313 00:19:04,160 --> 00:19:08,200 Speaker 3: hand and led to a misdemeanor plea deal in which 314 00:19:08,520 --> 00:19:12,840 Speaker 3: now the defendants are really facing a strong likelihood of 315 00:19:13,000 --> 00:19:16,520 Speaker 3: no prison time, whereas before they were facing felonies that 316 00:19:16,640 --> 00:19:18,919 Speaker 3: could have given them a maximum of twenty years in 317 00:19:19,080 --> 00:19:19,640 Speaker 3: prison each. 318 00:19:20,280 --> 00:19:25,720 Speaker 1: So did Todd Blanche overrule line prosecutors who had pursued 319 00:19:25,840 --> 00:19:30,600 Speaker 1: the felony bribery and wire fraud charges. Was it basically 320 00:19:30,600 --> 00:19:31,280 Speaker 1: a directive? 321 00:19:31,720 --> 00:19:37,359 Speaker 3: I don't have reporting to prove what Blanch's direct involvement was. 322 00:19:37,560 --> 00:19:40,119 Speaker 3: What I can say for my reporting is that I 323 00:19:40,320 --> 00:19:42,920 Speaker 3: my sources have told me that it was a representative 324 00:19:42,920 --> 00:19:46,959 Speaker 3: for Blanche, an associate Deputy Attorney General, who convened the meeting, 325 00:19:47,280 --> 00:19:50,800 Speaker 3: and that was the individual who ordered parties to come 326 00:19:50,840 --> 00:19:53,080 Speaker 3: to terms on a much more lenient settlement. 327 00:19:53,760 --> 00:19:58,760 Speaker 1: The federal judge in the case was obviously dismayed by 328 00:19:58,800 --> 00:20:01,679 Speaker 1: the government's decision to shift gears, as she put it, 329 00:20:01,720 --> 00:20:04,840 Speaker 1: at the eleventh hour, and she wrote that the case 330 00:20:05,040 --> 00:20:09,760 Speaker 1: was zealously prosecuted and the defendants will strikingly face a 331 00:20:09,840 --> 00:20:13,720 Speaker 1: mere slap on the wrist with a misdemeanor plea, despite 332 00:20:13,760 --> 00:20:17,520 Speaker 1: the government previously seeking harsher punishment. But she said there 333 00:20:17,560 --> 00:20:18,800 Speaker 1: was nothing she could do about it. 334 00:20:19,720 --> 00:20:22,480 Speaker 3: That's right. She said she wasn't willing to violate the 335 00:20:22,520 --> 00:20:26,560 Speaker 3: constitution and separation of powers by getting in the government's way, 336 00:20:26,600 --> 00:20:28,840 Speaker 3: and she was left with no choice but to respect 337 00:20:28,840 --> 00:20:32,119 Speaker 3: the government's decision that this plea deal is appropriate. She 338 00:20:32,160 --> 00:20:35,200 Speaker 3: did also point out that the order for the plea deal, 339 00:20:35,680 --> 00:20:39,679 Speaker 3: she said, presumably came on an order from Main Justice, 340 00:20:39,880 --> 00:20:42,720 Speaker 3: which in my view implies that whether or not she 341 00:20:42,800 --> 00:20:46,399 Speaker 3: read my reporting, she feels very strongly that there's no 342 00:20:46,440 --> 00:20:50,480 Speaker 3: way that, after years of zealous advocacy for felling convictions, 343 00:20:50,480 --> 00:20:54,080 Speaker 3: that the government wouldn't have changed course at the last 344 00:20:54,119 --> 00:20:56,240 Speaker 3: minute had it not been for intervention from the top 345 00:20:56,280 --> 00:20:56,680 Speaker 3: of the DOJ. 346 00:20:57,160 --> 00:21:01,360 Speaker 1: She did play one card that she had. The defendants 347 00:21:01,359 --> 00:21:05,240 Speaker 1: had asked to have their arraignment and plea hearings be 348 00:21:05,400 --> 00:21:09,680 Speaker 1: held by video teleconference, and she wrote, well, the defendants 349 00:21:09,680 --> 00:21:12,359 Speaker 1: are now charged with a misdemeanor offense, it's still an 350 00:21:12,359 --> 00:21:17,480 Speaker 1: offense that lacerates the integrity of our democratic electoral process. Therefore, 351 00:21:17,520 --> 00:21:20,920 Speaker 1: she said she was denying their request and ordered them 352 00:21:20,960 --> 00:21:22,840 Speaker 1: to appear before her in person. 353 00:21:23,359 --> 00:21:26,399 Speaker 3: Yes, she's playing the hand that she has, so that 354 00:21:26,440 --> 00:21:29,679 Speaker 3: appears to be the bit of leverage that she feels 355 00:21:29,680 --> 00:21:32,359 Speaker 3: she can exert right now. But there's no reason to 356 00:21:32,359 --> 00:21:36,399 Speaker 3: think that this plea agreement won't be fully resolved before 357 00:21:36,440 --> 00:21:37,960 Speaker 3: her in the coming weeks. 358 00:21:37,960 --> 00:21:42,680 Speaker 1: Remarks. This is reminiscent of the case against New York 359 00:21:42,720 --> 00:21:46,480 Speaker 1: City Mayor Eric Adams, where the political appointees at DOJ 360 00:21:46,960 --> 00:21:50,919 Speaker 1: ordered the interim US Attorney for the Southern District of 361 00:21:50,960 --> 00:21:54,040 Speaker 1: New York to drop the case, and she resigned in 362 00:21:54,119 --> 00:21:58,000 Speaker 1: protest with a slew of other prosecutors. And here the 363 00:21:58,040 --> 00:22:02,760 Speaker 1: line prosecutor, the assistant US Attorney, withdrew from the case 364 00:22:02,960 --> 00:22:07,080 Speaker 1: and left the Justice Department. So are there some troubling similarities? 365 00:22:07,480 --> 00:22:09,160 Speaker 3: I would say yes and no at the same time. 366 00:22:09,440 --> 00:22:11,880 Speaker 3: And yes in the sense that you do have an 367 00:22:11,880 --> 00:22:16,440 Speaker 3: example of somebody who is relying on intervention from the 368 00:22:16,520 --> 00:22:19,040 Speaker 3: very top of the Justice Department to go against the 369 00:22:19,640 --> 00:22:22,320 Speaker 3: wishes of prosecutors. But you know, I talked to people 370 00:22:22,320 --> 00:22:25,439 Speaker 3: who used to be public corruption prosecutors. In their minds, 371 00:22:25,480 --> 00:22:29,080 Speaker 3: this Puerto Rico case doesn't come close to the same 372 00:22:29,200 --> 00:22:31,720 Speaker 3: level of alarm they felt in response to the Eric 373 00:22:31,800 --> 00:22:35,480 Speaker 3: Adam situation, in which you had multiple prosecutors resigning in 374 00:22:35,520 --> 00:22:39,239 Speaker 3: protests rather than assign their name to any dismissal. In 375 00:22:39,280 --> 00:22:41,719 Speaker 3: this case, it wasn't just an outright dismissal. There at 376 00:22:41,800 --> 00:22:45,640 Speaker 3: least is some accountability for the defendants, albeit not nearly 377 00:22:45,680 --> 00:22:48,560 Speaker 3: as much as what prosecutors. Mind you, A US attorney 378 00:22:48,600 --> 00:22:51,240 Speaker 3: in Puerto Rico who was appointed by Trump in Trump's 379 00:22:51,240 --> 00:22:54,840 Speaker 3: first term, had been arguing for years was merited. You know. 380 00:22:55,000 --> 00:22:57,679 Speaker 3: I talked to some people who felt that, you know, 381 00:22:57,760 --> 00:23:00,399 Speaker 3: and perhaps in normal times, as they put it, that 382 00:23:00,480 --> 00:23:04,480 Speaker 3: this outcome that is facing her Era and Vasquez would 383 00:23:04,480 --> 00:23:08,400 Speaker 3: be more upsetting and considered more outrageous. But now they 384 00:23:08,400 --> 00:23:10,800 Speaker 3: felt like it's impossible to view it on its own 385 00:23:10,840 --> 00:23:14,359 Speaker 3: and not relative to other developments in this administration. Beculy, 386 00:23:14,400 --> 00:23:17,040 Speaker 3: not just Atoms, but other cases in which people with 387 00:23:17,119 --> 00:23:21,199 Speaker 3: connections to Trump personally or others in his orbit have 388 00:23:21,600 --> 00:23:25,720 Speaker 3: been able to get significant relief, pardons or dismissals against 389 00:23:25,760 --> 00:23:28,640 Speaker 3: the wishes of the federal prosecutors who would try them. 390 00:23:28,920 --> 00:23:32,440 Speaker 1: What is left of the public corruption team. 391 00:23:32,640 --> 00:23:36,040 Speaker 3: Right now, they are down to a skeleton crew. They're 392 00:23:36,040 --> 00:23:40,000 Speaker 3: in the process of being reassigned to other offices, or 393 00:23:40,359 --> 00:23:43,480 Speaker 3: many of them have already left on their own. One 394 00:23:43,480 --> 00:23:47,800 Speaker 3: of the handful of remaining attorneys in that public Integrity 395 00:23:47,800 --> 00:23:52,520 Speaker 3: section happened to be the line attorney prosecuting Vosquez and 396 00:23:52,760 --> 00:23:55,119 Speaker 3: her era, and so it was interesting to me that, 397 00:23:55,200 --> 00:23:59,960 Speaker 3: according to my reporting, that prosecutor was left on his own, 398 00:24:00,400 --> 00:24:02,959 Speaker 3: along with the US Attorney in Puerto Rico, but without 399 00:24:03,000 --> 00:24:06,800 Speaker 3: the backing of any of his direct bosses, to argue 400 00:24:06,960 --> 00:24:10,600 Speaker 3: before the Deputy Attorney General's office why this case should 401 00:24:10,600 --> 00:24:13,960 Speaker 3: proceed and did have merit. I think, you know, perhaps 402 00:24:13,960 --> 00:24:17,280 Speaker 3: if there had been a stronger public integrity section, you 403 00:24:17,359 --> 00:24:19,600 Speaker 3: know that that wouldn't have happened in a line attorney 404 00:24:19,600 --> 00:24:21,640 Speaker 3: wouldn't have been left to stand on his own. 405 00:24:21,760 --> 00:24:23,800 Speaker 1: You wrote that a few days before the plea agreement, 406 00:24:23,880 --> 00:24:26,600 Speaker 1: the head of the Department's Criminal Division, in a speech 407 00:24:26,640 --> 00:24:32,119 Speaker 1: about overseas bribe reinforcement, Warren white collar lawyers, that mischaracterizing 408 00:24:32,240 --> 00:24:36,960 Speaker 1: prosecutorial conduct would be counterproductive to your appeals. 409 00:24:37,600 --> 00:24:41,320 Speaker 3: I thought it was important to place this level of 410 00:24:41,680 --> 00:24:46,240 Speaker 3: outreach to superiors above the line prosecutors to get relief 411 00:24:46,240 --> 00:24:48,480 Speaker 3: for a client in the broader context of what we've 412 00:24:48,480 --> 00:24:51,840 Speaker 3: seen happening in this administration, where you've seen ever since 413 00:24:51,960 --> 00:24:54,760 Speaker 3: cam Bondi when she was sworn in as Attorney General 414 00:24:54,840 --> 00:24:58,400 Speaker 3: and put out a series of memos that narrowly curtailed 415 00:24:58,520 --> 00:25:02,800 Speaker 3: the vigor of white collar enforcement. You've seen defense attorneys 416 00:25:02,800 --> 00:25:05,560 Speaker 3: trying to take advantage of that and bring up cases 417 00:25:05,600 --> 00:25:09,199 Speaker 3: to senior officials at the Justice Department and argue that 418 00:25:09,280 --> 00:25:12,720 Speaker 3: this case no longer meets your priorities or that you know, 419 00:25:12,920 --> 00:25:15,719 Speaker 3: also in alignment with another one of Bond these memos 420 00:25:15,880 --> 00:25:19,960 Speaker 3: seeking to root out weaponization inside the Justice Department, parroting 421 00:25:20,040 --> 00:25:23,359 Speaker 3: Trump's frequent talking point, defense attorneys trying to make the 422 00:25:23,400 --> 00:25:26,800 Speaker 3: point that these were weaponized prosecutors in this case wouldn't 423 00:25:26,800 --> 00:25:30,879 Speaker 3: have been brought had they not had partisan motivation. Now, 424 00:25:31,000 --> 00:25:33,360 Speaker 3: what we saw in this conference that I was referenced 425 00:25:33,440 --> 00:25:36,080 Speaker 3: to in the article, Matt Galliotti, who is the acting 426 00:25:36,119 --> 00:25:40,080 Speaker 3: head of the Criminal Division at DJ, was essentially telling 427 00:25:40,200 --> 00:25:43,000 Speaker 3: white collar defense attorneys, Hey, there are people out here 428 00:25:43,040 --> 00:25:46,000 Speaker 3: who may not be arguing in good faith about why 429 00:25:46,040 --> 00:25:48,359 Speaker 3: their clients deserve relief, and we're not going to just 430 00:25:48,440 --> 00:25:51,520 Speaker 3: represtamp your appeals to us. You need to come to 431 00:25:51,640 --> 00:25:54,760 Speaker 3: us with facts and evidence as to why your case 432 00:25:55,080 --> 00:25:58,199 Speaker 3: should no longer be prosecuted. You know, looking at that 433 00:25:58,320 --> 00:26:01,560 Speaker 3: in the context of what happened with Boscas and Valatini, 434 00:26:01,800 --> 00:26:04,280 Speaker 3: that was an example where you had somebody who had 435 00:26:04,320 --> 00:26:08,119 Speaker 3: direct ties to the Deputy Attorney General's office, which is 436 00:26:08,200 --> 00:26:11,120 Speaker 3: higher up the national ands of TJ, higher up than 437 00:26:11,280 --> 00:26:14,360 Speaker 3: the criminal divisions. It'll be interesting to see going forward 438 00:26:14,640 --> 00:26:18,920 Speaker 3: which types of cases are attorneys trying to make their 439 00:26:18,920 --> 00:26:22,479 Speaker 3: appeals to in criminal division versus the Deputy Attorney General's office. 440 00:26:22,560 --> 00:26:25,439 Speaker 3: If you go to the Dag's office, will they shoot 441 00:26:25,440 --> 00:26:27,280 Speaker 3: down and say no, you need to talk to the 442 00:26:27,280 --> 00:26:29,879 Speaker 3: criminal division first. You know, these are dynamics that are 443 00:26:29,920 --> 00:26:31,840 Speaker 3: still in the early months of playing out and I 444 00:26:31,960 --> 00:26:34,760 Speaker 3: think will be perhaps deal with on a case by 445 00:26:34,800 --> 00:26:35,520 Speaker 3: case basis. 446 00:26:35,800 --> 00:26:39,760 Speaker 1: Well, so much for public corruption cases. Thanks so much, Ben. 447 00:26:40,160 --> 00:26:44,200 Speaker 1: That's Ben Penn's senior Justice Department reporter at Bloomberg Law. 448 00:26:44,720 --> 00:26:47,600 Speaker 1: Coming up next on the Bloomberg Lawn Show, the Labor 449 00:26:47,680 --> 00:26:54,040 Speaker 1: Department's quiet regulation rollback done without a press conference or fanfare. 450 00:26:54,280 --> 00:26:58,640 Speaker 1: I'm June Grosso. When you're listening to Bloomberg. The Trump 451 00:26:58,720 --> 00:27:03,639 Speaker 1: administration's regulatory push has landed at the Labor Department, with 452 00:27:03,760 --> 00:27:08,000 Speaker 1: the agency advancing a slew of proposals to tweak or 453 00:27:08,080 --> 00:27:13,200 Speaker 1: scrap policies across several of its subagencies without much fanfare. 454 00:27:13,760 --> 00:27:17,280 Speaker 1: Rules on the chopping block include minimum wage and overtime 455 00:27:17,359 --> 00:27:23,360 Speaker 1: protections for certain health aids, anti discrimination requirements for apprenticeship programs, 456 00:27:23,640 --> 00:27:27,919 Speaker 1: and union organizing protections for foreign farm workers. Joining me 457 00:27:27,960 --> 00:27:32,280 Speaker 1: is Rebecca Rainey, Senior Labor Department reporter at Bloomberg Law, 458 00:27:32,320 --> 00:27:37,600 Speaker 1: tell us about the major deregulatory push at the Labor Department. 459 00:27:37,680 --> 00:27:38,400 Speaker 1: What's happening. 460 00:27:39,080 --> 00:27:42,720 Speaker 4: The US Department of Labor recently announced that it was 461 00:27:42,800 --> 00:27:46,960 Speaker 4: undergoing this massive deregulation effort, naming that there was going 462 00:27:47,000 --> 00:27:50,400 Speaker 4: to be about sixty three rules or actions that they 463 00:27:50,400 --> 00:27:55,000 Speaker 4: were taking to reduce what they call red tape. And 464 00:27:55,040 --> 00:27:59,560 Speaker 4: so what happened was there was a rollout of dozens 465 00:27:59,560 --> 00:28:04,120 Speaker 4: of rules rescinding certain requirements for employers. We saw more 466 00:28:04,200 --> 00:28:09,240 Speaker 4: than three dozen rules last week that included rules reducing 467 00:28:09,440 --> 00:28:13,560 Speaker 4: certain safety requirements for employers at the Department of Labor's 468 00:28:13,560 --> 00:28:18,560 Speaker 4: worker safety agencies. We saw a cancelation of minimum wage 469 00:28:18,600 --> 00:28:21,639 Speaker 4: and over time protections that have been extended to certain 470 00:28:22,000 --> 00:28:26,440 Speaker 4: home health aids, and even you know, anti discrimination requirements 471 00:28:26,600 --> 00:28:30,720 Speaker 4: or recipients of funding for apprenticeship or job training programs. 472 00:28:31,000 --> 00:28:34,240 Speaker 4: So we got all of these rules very very quickly, 473 00:28:34,600 --> 00:28:36,879 Speaker 4: without a lot of heads up from an Apartment of Labor. 474 00:28:37,000 --> 00:28:39,360 Speaker 4: Now a lot of these proposals will be going through 475 00:28:39,400 --> 00:28:42,760 Speaker 4: a public comment period, but one of the top Democrats 476 00:28:42,800 --> 00:28:48,080 Speaker 4: on the Education and Workforce Committee, Ret. Bobby Scott from Virginia, 477 00:28:48,440 --> 00:28:51,600 Speaker 4: he is now pressing the administration for more details on 478 00:28:51,640 --> 00:28:55,880 Speaker 4: this because we haven't received a regulatory agenda yet. And 479 00:28:56,000 --> 00:29:01,640 Speaker 4: for those unfamiliar, typically every fall and spring, administrations will 480 00:29:01,720 --> 00:29:05,120 Speaker 4: release this big schedule listing all of the rules that 481 00:29:05,160 --> 00:29:09,920 Speaker 4: they plan to advance in the coming months and outlined 482 00:29:10,040 --> 00:29:12,200 Speaker 4: kind of just a short summary of what the rules 483 00:29:12,200 --> 00:29:15,920 Speaker 4: will do. It's usually maybe two sentences, but it gives 484 00:29:15,960 --> 00:29:17,719 Speaker 4: you a little bit more of a heads up of 485 00:29:17,760 --> 00:29:20,640 Speaker 4: what the agency may be doing in that policy space, 486 00:29:20,800 --> 00:29:24,000 Speaker 4: and we don't have that right now. So figuring out 487 00:29:24,160 --> 00:29:27,280 Speaker 4: what these rules do has taken quite a bit of 488 00:29:27,320 --> 00:29:29,520 Speaker 4: time because instead of kind of getting that summary in 489 00:29:29,560 --> 00:29:33,160 Speaker 4: the beginning, we had to, you know, quickly rifle through 490 00:29:33,240 --> 00:29:36,360 Speaker 4: these one hundred page rule makings as soon as they 491 00:29:36,360 --> 00:29:38,280 Speaker 4: came out to try and figure out the impact that 492 00:29:38,320 --> 00:29:41,320 Speaker 4: they may have. So, you know, the ranking member and 493 00:29:41,720 --> 00:29:44,480 Speaker 4: you know, I'm sure a lot of journalists are similarly 494 00:29:44,520 --> 00:29:47,440 Speaker 4: scratching their heads as to what could be coming next. 495 00:29:47,520 --> 00:29:51,160 Speaker 4: Just given the speed and piece of the Trump Administration's 496 00:29:51,240 --> 00:29:54,200 Speaker 4: moves in the Department of Labor's regulatory. 497 00:29:53,680 --> 00:29:57,640 Speaker 1: Space, Representative Scott what were his major concerns. Were there 498 00:29:57,720 --> 00:30:01,160 Speaker 1: some changes that he was particular concerned about. 499 00:30:01,920 --> 00:30:06,200 Speaker 4: Yeah, so there is a proposal currently pending at the 500 00:30:06,200 --> 00:30:08,920 Speaker 4: White House Budget Office, and that is the last step 501 00:30:09,000 --> 00:30:12,520 Speaker 4: before proposal can be released publicly by an agency, it 502 00:30:12,560 --> 00:30:14,920 Speaker 4: has to be approved by the Budget Office. So there's 503 00:30:15,080 --> 00:30:19,040 Speaker 4: two rules pending over there, and one of them mentioned 504 00:30:19,320 --> 00:30:22,880 Speaker 4: that it looks to update the Department of Labor's child 505 00:30:23,000 --> 00:30:28,800 Speaker 4: labor regulations, including its hazardous occupation orders, which list types 506 00:30:28,840 --> 00:30:32,800 Speaker 4: of jobs that anyone under eighteen shouldn't work. In that 507 00:30:32,920 --> 00:30:38,680 Speaker 4: we're talking about mining, working with mechanical tools, power driven 508 00:30:39,240 --> 00:30:43,680 Speaker 4: machinery that could potentially be risky for those who are 509 00:30:43,760 --> 00:30:48,840 Speaker 4: under eighteen to operate. The proposal would also potentially address 510 00:30:49,200 --> 00:30:53,400 Speaker 4: limits on when kids can work. There's currently restrictions for 511 00:30:53,520 --> 00:30:55,880 Speaker 4: fourteen and fifteen year olds as to how late they 512 00:30:55,880 --> 00:30:58,560 Speaker 4: can work during the school year. Those restrictions are a 513 00:30:58,600 --> 00:31:01,960 Speaker 4: little bit more laxed during the summer time. But you know, 514 00:31:02,080 --> 00:31:04,720 Speaker 4: there is a lot of concern about why the Trump 515 00:31:04,760 --> 00:31:08,880 Speaker 4: administration is looking at revising these rules given that there 516 00:31:08,920 --> 00:31:12,719 Speaker 4: has been an extreme uptick in the number of legal 517 00:31:12,840 --> 00:31:16,080 Speaker 4: child labor cases we've seen across the United States in 518 00:31:16,160 --> 00:31:20,800 Speaker 4: recent years, including horrible, egregious cases where we saw children 519 00:31:21,240 --> 00:31:27,480 Speaker 4: working overnight and in neat slaughtering plants, cleaning sharp, dangerous machinery, 520 00:31:27,760 --> 00:31:30,959 Speaker 4: and obviously they weren't allowed to be working there. So, 521 00:31:31,520 --> 00:31:35,080 Speaker 4: you know, the Democrats are raising questions and also worker 522 00:31:35,120 --> 00:31:38,320 Speaker 4: advocates in unions or raising questions as to why the 523 00:31:38,360 --> 00:31:41,600 Speaker 4: Trump administration maybe making those rules a little bit more 524 00:31:41,760 --> 00:31:45,760 Speaker 4: relaxed when there's been so much illegal activity in that 525 00:31:45,880 --> 00:31:47,200 Speaker 4: space in recent years. 526 00:31:47,680 --> 00:31:52,120 Speaker 1: Was Scott implying that the reason why there wasn't, you know, 527 00:31:52,240 --> 00:31:55,920 Speaker 1: a big rollout or press conference was because they were 528 00:31:56,360 --> 00:31:59,280 Speaker 1: trying to hide these rules, the child labor rules. 529 00:32:00,000 --> 00:32:02,720 Speaker 4: Now, not exactly, but you know, there is a bit 530 00:32:02,760 --> 00:32:06,160 Speaker 4: of you know, tea leaf reading here. There was supposed 531 00:32:06,160 --> 00:32:11,440 Speaker 4: to be a press announcement about this deregulatory push. Initially 532 00:32:11,480 --> 00:32:14,680 Speaker 4: it was scheduled for one of the Michigan stops that 533 00:32:14,760 --> 00:32:18,400 Speaker 4: the Labor Secretary, Loris Shaves DeRemer has been traveling the 534 00:32:18,400 --> 00:32:23,000 Speaker 4: country visiting different training and businesses who you know, meet 535 00:32:23,000 --> 00:32:25,960 Speaker 4: with Americans and workers on the job. And she was 536 00:32:26,000 --> 00:32:28,760 Speaker 4: supposed to make this announcement at one stop in Michigan. 537 00:32:29,160 --> 00:32:31,640 Speaker 4: That was postponed. It was pushed a couple of days, 538 00:32:31,640 --> 00:32:33,560 Speaker 4: and you know, the Apartment of Labor said, we're going 539 00:32:33,600 --> 00:32:36,320 Speaker 4: to do this at our headquarters in Washington, d C. Instead, 540 00:32:36,840 --> 00:32:40,840 Speaker 4: And then that was again just postponed indefinitely, and they 541 00:32:41,120 --> 00:32:44,560 Speaker 4: you know, announced that they were doing this deregulatory push instead, 542 00:32:44,680 --> 00:32:47,240 Speaker 4: just through a press release. So I was not able 543 00:32:47,280 --> 00:32:49,400 Speaker 4: to get clarity from the Department of Labor as to 544 00:32:49,400 --> 00:32:51,960 Speaker 4: whether there was a personal reason as to why the 545 00:32:52,040 --> 00:32:55,560 Speaker 4: Labor Secretary and the Deputy Labor Secretary didn't want to 546 00:32:55,600 --> 00:32:59,480 Speaker 4: make this announcement. But you know, again it is questionable, 547 00:32:59,560 --> 00:33:02,600 Speaker 4: especially because they did push out this press release saying, hey, 548 00:33:02,600 --> 00:33:05,880 Speaker 4: look at all these things we're doing, but very quietly, 549 00:33:06,280 --> 00:33:09,320 Speaker 4: you know, and after the fact. So there is a 550 00:33:09,360 --> 00:33:13,040 Speaker 4: lot of questions as to why this rollout didn't receive 551 00:33:13,120 --> 00:33:18,200 Speaker 4: the same fanfare that regulations typically do, especially given that 552 00:33:18,280 --> 00:33:21,400 Speaker 4: this is, you know, such a high priority for President 553 00:33:21,400 --> 00:33:24,920 Speaker 4: Donald Trump when it comes to reducing regulations. He signed 554 00:33:24,920 --> 00:33:29,720 Speaker 4: an executive order shortly after he took office directing Executive 555 00:33:29,760 --> 00:33:34,440 Speaker 4: Branch agencies to send ten regulations for every new regulation 556 00:33:34,720 --> 00:33:38,640 Speaker 4: they issue, and so thed Well was really proud to 557 00:33:38,680 --> 00:33:41,760 Speaker 4: say that they were championing that effort, but did so 558 00:33:41,960 --> 00:33:44,680 Speaker 4: more quietly in a written press release, as opposed to 559 00:33:44,720 --> 00:33:47,360 Speaker 4: a full prece event that had been previously planned. 560 00:33:47,720 --> 00:33:50,040 Speaker 1: Yeah, the Labor Secretary, and the press release said the 561 00:33:50,080 --> 00:33:54,280 Speaker 1: agency's plan is quote the most ambitious proposal to slash 562 00:33:54,360 --> 00:33:58,400 Speaker 1: red tape of any department across the federal government. And 563 00:33:58,480 --> 00:34:03,280 Speaker 1: Trump's new regulatory push is more intense than his regulatory 564 00:34:03,320 --> 00:34:05,080 Speaker 1: push in his first administration. 565 00:34:05,640 --> 00:34:08,600 Speaker 4: I would say so given just the speed and the 566 00:34:08,880 --> 00:34:12,560 Speaker 4: number of regulations that they are targeting so quickly. You know, 567 00:34:12,920 --> 00:34:16,160 Speaker 4: normally this kind of happens one at a time. We 568 00:34:16,640 --> 00:34:19,360 Speaker 4: kind of like take each bite as it goes. But 569 00:34:19,640 --> 00:34:23,000 Speaker 4: this time they just have decided to kind of pol 570 00:34:23,040 --> 00:34:26,160 Speaker 4: the tablecloth off the table, so to say. When it 571 00:34:26,200 --> 00:34:28,879 Speaker 4: comes to a lot of these rules, and some of them, 572 00:34:29,120 --> 00:34:32,239 Speaker 4: I will say, we're more technical. There was a rule 573 00:34:32,280 --> 00:34:36,200 Speaker 4: making that rescinded, you know, multiple pieces of guidance in 574 00:34:36,520 --> 00:34:39,279 Speaker 4: one fell swoop. But a lot of that guidance was 575 00:34:39,680 --> 00:34:42,880 Speaker 4: instructions to employers that how to comply with laws that 576 00:34:42,960 --> 00:34:45,759 Speaker 4: were either no longer in effect or rules that had 577 00:34:45,760 --> 00:34:50,759 Speaker 4: been superseded by new regulations. Some of it was just outdated, 578 00:34:50,880 --> 00:34:53,040 Speaker 4: and some of it seems to be just you know, 579 00:34:53,200 --> 00:34:56,160 Speaker 4: thinning out the code of federal regulations. Not all of 580 00:34:56,160 --> 00:35:01,240 Speaker 4: it is as alarming as the proposals Repcot is learned about. However, 581 00:35:01,560 --> 00:35:04,440 Speaker 4: it still is happening in a way that feels like 582 00:35:04,760 --> 00:35:08,840 Speaker 4: it is kind of a fire hose of new policy moves. 583 00:35:08,920 --> 00:35:11,440 Speaker 4: And this is very hard for those who are watching 584 00:35:11,440 --> 00:35:13,720 Speaker 4: the labor and employment community to kind of keep track 585 00:35:13,800 --> 00:35:16,759 Speaker 4: when things are not happening. You know, one or two 586 00:35:16,800 --> 00:35:19,560 Speaker 4: rules at a time, but sixty three rules at. 587 00:35:19,440 --> 00:35:23,440 Speaker 1: A time are the bulk of them employer friendly. 588 00:35:23,560 --> 00:35:27,040 Speaker 4: So a bulk of the rules that are being reduced 589 00:35:27,480 --> 00:35:31,799 Speaker 4: are rules that puts requirements on employers. So I would 590 00:35:31,840 --> 00:35:36,040 Speaker 4: say overall the effort is an employer friendly effort because 591 00:35:36,040 --> 00:35:40,520 Speaker 4: it is reducing the regular story requirements and rules that 592 00:35:40,560 --> 00:35:44,279 Speaker 4: employers have to follow. So it gives employers less things 593 00:35:44,320 --> 00:35:46,640 Speaker 4: that potentially trip them up and get them a violation 594 00:35:46,760 --> 00:35:50,200 Speaker 4: from the Department of Labor. And we have already seen 595 00:35:50,320 --> 00:35:55,640 Speaker 4: this kind of compliance assistance trend growing from the Trump 596 00:35:55,680 --> 00:35:59,239 Speaker 4: administration and the Department of Labor In recent weeks, they 597 00:35:59,520 --> 00:36:02,600 Speaker 4: recently announced that they were doing an opinion letter program. 598 00:36:02,600 --> 00:36:07,520 Speaker 4: And while opinion letters aren't necessarily a new thing, that 599 00:36:07,719 --> 00:36:11,600 Speaker 4: the DL is doing this initiative to get employers and 600 00:36:11,800 --> 00:36:15,480 Speaker 4: organizations that are regulated by the Department of Labor to 601 00:36:15,600 --> 00:36:19,240 Speaker 4: submit these questions so that the Department can produce opinion 602 00:36:19,320 --> 00:36:22,480 Speaker 4: letters is a new one. And for those I'm familiar, 603 00:36:22,640 --> 00:36:25,960 Speaker 4: an opinion letter is where an employer or an organization 604 00:36:26,160 --> 00:36:29,239 Speaker 4: can write in and say, Hey, I have this situation 605 00:36:29,400 --> 00:36:33,160 Speaker 4: with an employee and I am not sure how they 606 00:36:33,200 --> 00:36:36,200 Speaker 4: should be treated under federal law. Or I have this 607 00:36:36,600 --> 00:36:40,200 Speaker 4: scenario when it comes to certain benefits that I'm not 608 00:36:40,239 --> 00:36:44,880 Speaker 4: sure if I am compensating my employee appropriately under the laws. 609 00:36:44,880 --> 00:36:47,279 Speaker 4: So I'm going to write about this situation to you, 610 00:36:47,360 --> 00:36:50,800 Speaker 4: Department of Labor, and you tell me what your opinion 611 00:36:50,960 --> 00:36:54,640 Speaker 4: is of this situation, and they publish, you know, how 612 00:36:54,680 --> 00:36:58,839 Speaker 4: they would approach each individual case in this letter. They 613 00:36:58,920 --> 00:37:01,799 Speaker 4: scrub the information and about the employer, and you know, 614 00:37:02,040 --> 00:37:06,399 Speaker 4: businesses and attorneys can use these opinion letters to kind 615 00:37:06,400 --> 00:37:13,120 Speaker 4: of guide how they respond to and comfly with different regulations. Now, 616 00:37:13,280 --> 00:37:17,000 Speaker 4: while opinion letters are specific to the companies or organization 617 00:37:17,120 --> 00:37:19,920 Speaker 4: that wrote in the letter it can be a good 618 00:37:19,960 --> 00:37:24,759 Speaker 4: example that provides more guidance about how to follow the law. 619 00:37:25,040 --> 00:37:28,520 Speaker 4: You know, employers sometimes complain that the Department of Labor 620 00:37:28,640 --> 00:37:32,040 Speaker 4: takes a position where it's just trying to find bad 621 00:37:32,080 --> 00:37:35,319 Speaker 4: actors or catch them, you know, being caught up in 622 00:37:35,360 --> 00:37:39,120 Speaker 4: these very complicated regulations that can sometimes go one way 623 00:37:39,200 --> 00:37:41,759 Speaker 4: or sometimes go the other way. And this is an 624 00:37:41,760 --> 00:37:45,160 Speaker 4: effort that the Trump administration says they hope will make 625 00:37:45,160 --> 00:37:48,560 Speaker 4: it easier for businesses who are trying to comfy with 626 00:37:48,680 --> 00:37:52,160 Speaker 4: the law in good base better be able to navigate 627 00:37:52,280 --> 00:37:55,280 Speaker 4: those nuances within the Department of Labor's regulation. 628 00:37:56,080 --> 00:38:00,840 Speaker 1: Besides the child safety concerns, are there other concerns about 629 00:38:00,880 --> 00:38:03,919 Speaker 1: worker safety coming from these proposals. 630 00:38:04,400 --> 00:38:08,239 Speaker 4: Yeah, So, as I mentioned, there's a lot of recisions 631 00:38:08,280 --> 00:38:12,680 Speaker 4: of different protections. Another one is for home health care 632 00:38:12,800 --> 00:38:16,839 Speaker 4: aids and those are you know, nurses or assistants who 633 00:38:16,840 --> 00:38:20,600 Speaker 4: are providing what they call compassionate care for those of 634 00:38:20,719 --> 00:38:24,640 Speaker 4: disabilities or for those who are elderly inside their homes. 635 00:38:24,960 --> 00:38:29,239 Speaker 4: And the Obama administration had issued this rule there was 636 00:38:29,280 --> 00:38:33,000 Speaker 4: an exemption under the law that said certain workers providing 637 00:38:33,080 --> 00:38:36,680 Speaker 4: these types of services don't have to be paid the 638 00:38:36,719 --> 00:38:40,080 Speaker 4: minimum wation overtime protections. Given that you know they're in 639 00:38:40,160 --> 00:38:42,560 Speaker 4: the home for so long in the day, you can 640 00:38:42,640 --> 00:38:45,600 Speaker 4: create record keeping issues, all sorts of things. But the 641 00:38:45,640 --> 00:38:49,200 Speaker 4: Obama administration said, we don't think that's there. We are 642 00:38:49,360 --> 00:38:52,439 Speaker 4: reducing that exemption, and it made a lot of home 643 00:38:52,520 --> 00:38:56,120 Speaker 4: care workers eligible for the first time for minimum wation 644 00:38:56,239 --> 00:38:59,640 Speaker 4: overtime protections. The Trump administration is now coming back and 645 00:38:59,680 --> 00:39:02,640 Speaker 4: trying to cancel that. Basically, it would broaden back that 646 00:39:02,760 --> 00:39:06,960 Speaker 4: exemption and make more of these home care workers ineligible 647 00:39:07,160 --> 00:39:10,799 Speaker 4: for the minimum wage or overtimely And the reason for that, 648 00:39:10,800 --> 00:39:13,719 Speaker 4: the Trump administration says, is just the exemption is very 649 00:39:13,760 --> 00:39:18,040 Speaker 4: hard to comply with and it has led to a 650 00:39:18,239 --> 00:39:23,640 Speaker 4: decrease in availability of these types of workers. And they're 651 00:39:23,680 --> 00:39:26,799 Speaker 4: hoping that by rescinding this rule, it will make it 652 00:39:26,840 --> 00:39:30,360 Speaker 4: easier for companies that have more of these workers available. 653 00:39:30,840 --> 00:39:33,560 Speaker 4: So that is another rool there that is probably going 654 00:39:33,600 --> 00:39:36,640 Speaker 4: to draw a lot of concern from worker advocates and 655 00:39:36,719 --> 00:39:41,120 Speaker 4: Democrats who support the expansion of workplace protections, especially for 656 00:39:41,200 --> 00:39:44,960 Speaker 4: workers in the healthcare industry, which is one of the 657 00:39:45,080 --> 00:39:48,480 Speaker 4: highest industries when it comes to certain types of minimum 658 00:39:48,520 --> 00:39:51,840 Speaker 4: wage and overtime violations, as well as physical violence. 659 00:39:52,200 --> 00:39:53,759 Speaker 1: You'll have to come back and let us know what 660 00:39:53,840 --> 00:39:56,520 Speaker 1: happens with some of these rules. Thanks so much, Rebecca. 661 00:39:57,000 --> 00:40:01,360 Speaker 1: That's Bloomberg Lawn Labor Department Reporterbeca and that's it for 662 00:40:01,360 --> 00:40:04,000 Speaker 1: this edition of The Bloomberg Law Show. Remember you can 663 00:40:04,040 --> 00:40:07,319 Speaker 1: always get the latest legal news on our Bloomberg Law podcasts. 664 00:40:07,560 --> 00:40:10,560 Speaker 1: You can find them on Apple Podcasts, Spotify, and at 665 00:40:10,719 --> 00:40:15,759 Speaker 1: www dot Bloomberg dot com slash podcast Slash Law, And 666 00:40:15,840 --> 00:40:18,920 Speaker 1: remember to tune into The Bloomberg Law Show every weeknight 667 00:40:19,000 --> 00:40:22,440 Speaker 1: at ten pm Wall Street Time. I'm June Grosso and 668 00:40:22,480 --> 00:40:23,960 Speaker 1: you're listening to Bloomberg