Sitting on Billions, the Catholic Church Got $3 Billion in PPP Taxpayer Money

The irony and fraud here is unspeakable. Keep in mind, that many Catholic churches have private schools that are open. Will there be a clawback effort at all as you read on?

AP:

When the coronavirus forced churches to close their doors and give up Sunday collections, the Roman Catholic Diocese of Charlotte turned to the federal government’s signature small business relief program for more than $8 million.

The diocese’s headquarters, churches and schools landed the help even though they had roughly $100 million of their own cash and short-term investments available last spring, financial records show. When the cash catastrophe church leaders feared didn’t materialize, those assets topped $110 million by the summer.

“I am gratified to report the overall good financial health of the diocese despite the many difficulties presented by the Covid-19 pandemic,” Bishop Peter Jugis wrote in the diocese’s audited financial report released last fall.

As the pandemic began to unfold, scores of Catholic dioceses across the U.S. received aid through the Paycheck Protection Program while sitting on well over $10 billion in cash, short-term investments or other available funds, an Associated Press investigation has found. And despite the broad economic downturn, these assets have grown in many dioceses.

Yet even with that financial safety net, the 112 dioceses that shared their financial statements, along with the churches and schools they oversee, collected at least $1.5 billion in taxpayer-backed aid. A majority of these dioceses reported enough money on hand to cover at least six months of operating expenses, even without any new income.

The financial resources of several dioceses rivaled or exceeded those available to publicly traded companies like Shake Shack and Ruth’s Chris Steak House, whose early participation in the program triggered outrage. Federal officials responded by emphasizing the money was intended for those who lacked the cushion that cash and other liquidity provide. Many corporations returned the funds.

Overall, the nation’s nearly 200 dioceses, where bishops and cardinals govern, and other Catholic institutions received at least $3 billion. That makes the Roman Catholic Church perhaps the biggest beneficiary of the paycheck program, according to AP’s analysis of data the U.S. Small Business Administration released following a public-records lawsuit by news organizations. The agency for months had shared only partial information, making a more precise analysis impossible.

Already one of the largest federal aid efforts ever, the SBA reopened the Paycheck Protection Program last month with a new infusion of nearly $300 billion. In making the announcement, the agency’s administrator at the time, Jovita Carranza, hailed the program for serving “as an economic lifeline to millions of small businesses.”

Church officials have said their employees were as worthy of help as workers at Main Street businesses, and that without it they would have had to slash jobs and curtail their charitable mission as demand for food pantries and social services spiked. They point out the program’s rules didn’t require them to exhaust their stores of cash and other funds before applying.

But new financial statements several dozen dioceses have posted for 2020 show that their available resources remained robust or improved during the pandemic’s hard, early months. The pattern held whether a diocese was big or small, urban or rural, East or West, North or South.

In Kentucky, funds available to the Archdiocese of Louisville, its parishes and other organizations grew from at least $153 million to $157 million during the fiscal year that ended in June, AP found. Those same offices and organizations received at least $17 million in paycheck money. “The Archdiocese’s operations have not been significantly impacted by the Covid-19 outbreak,” according to its financial statement.

In Illinois, the Archdiocese of Chicago had more than $1 billion in cash and investments in its headquarters and cemetery division as of May, while the faithful continued to donate “more than expected,” according to a review by the independent ratings agency Moody’s Investors Service. Chicago’s parishes, schools and ministries accumulated at least $77 million in paycheck protection funds.

Up the interstate from Charlotte in North Carolina, the Raleigh Diocese collected at least $11 million in aid. Yet during the fiscal year that ended in June, overall offerings were down just 5% and the assets available to the diocese, its parishes and schools increased by about $21 million to more than $170 million, AP found. In another measure of fiscal health, the diocese didn’t make an emergency draw on its $10 million line of credit.

Catholic leaders in dioceses including Charlotte, Chicago, Louisville and Raleigh said their parishes and schools, like many other businesses and nonprofits, suffered financially when they closed to slow the spread of the deadly coronavirus.

Some dioceses reported that their hardest-hit churches saw income drop by 40% or more before donations began to rebound months later, and schools took hits when fundraisers were canceled and families had trouble paying tuition. As revenues fell, dioceses said, wage cuts and a few dozen layoffs were necessary in some offices.

Catholic researchers at Georgetown University who surveyed the nation’s bishops last summer found such measures weren’t frequent. In comparison, a survey by the investment bank Goldman Sachs found 42% of small business owners had cut staff or salaries, and that 33% had spent their personal savings to stay open.

Church leaders have questioned why AP focused on their faith following a story last July, when New York Cardinal Timothy Dolan wrote that reporters “invented a story when none existed and sought to bash the Church.”

By using a special exemption that the church lobbied to include in the paycheck program, Catholic entities amassed at least $3 billion — roughly the same as the combined total of recipients from the other faiths that rounded out the top five, AP found. Baptist, Lutheran, Methodist and Jewish faith-based recipients also totaled at least $3 billion. Catholics account for about a fifth of the U.S. religious population while members of Protestant and Jewish denominations are nearly half, according to the Pew Research Center.

Catholic institutions also received many times more than other major nonprofits with charitable missions and national reach, such as the United Way, Goodwill Industries and Boys & Girls Clubs of America. Overall, Catholic recipients got roughly twice as much as 40 of the largest, most well-known charities in America combined, AP found.

The complete picture is certainly even more lopsided. So many Catholic entities received help that reporters could not identify them all, even after spending hundreds of hours hand-checking tens of thousands of records in federal data.

The Vatican referred questions about the paycheck program to the United States Conference of Catholic Bishops, which said it does not speak on behalf of dioceses.

Presented with AP’s findings, bishops conference spokeswoman Chieko Noguchi responded with a broad statement that the Paycheck Protection Program was “designed to protect the jobs of Americans from all walks of life, regardless of whether they work for for-profit or nonprofit employers, faith-based or secular.”

___

INTERNAL SKEPTICISM

The AP’s assessment of church finances is among the most comprehensive to date. It draws largely from audited financial statements posted online by the central offices of 112 of the country’s nearly 200 dioceses.

The church isn’t required to share its financials. As a result, the analysis doesn’t include cash, short-term assets and lines of credit held by some of the largest dioceses, including those serving New York City and other major metropolitan areas.

The analysis focused on available assets because federal officials cited those metrics when clarifying eligibility for the paycheck program. Therefore, the $10 billion AP identified doesn’t count important financial pillars of the U.S. church. Among those are its thousands of real estate properties and most of the funds that parishes and schools hold. Also excluded is the money — estimated at $9.5 billion in a 2019 study by the Delaware-based wealth management firm Wilmington Trust — held by charitable foundations created to help dioceses oversee donations.

In addition, dioceses can rely on a well-funded support system that includes help from wealthier dioceses, the bishops conference and other Catholic organizations. Canon law, the legal code the Vatican uses to govern the global church, notes that richer dioceses may assist poorer ones, and the AP found instances where they did.

In their financial statements, the 112 dioceses acknowledged having at least $4.5 billion in liquid or otherwise available assets. To reach its $10 billion total, AP also included funding that dioceses had opted to designate for special projects instead of general expenses; excess cash that parishes and their affiliates deposit with their diocese’s savings and loan; and lines of credit dioceses typically have with outside banks.

Some church officials said AP was misreading their financial books and therefore overstating available assets. They insisted that money their bishop or his advisers had set aside for special projects couldn’t be repurposed during an emergency, although financial statements posted by multiple dioceses stated the opposite.

For its analysis, AP consulted experts in church finance and church law. One was the Rev. James Connell, an accountant for 15 years before joining the priesthood and becoming an administrator in the Milwaukee Archdiocese. Connell, also a canon lawyer who is now retired from his position with the archdiocese, said AP’s findings convinced him that Catholic entities did not need government aid — especially when thousands of small businesses were permanently closing.

“Was it want or need?” Connell asked. “Need must be present, not simply the want. Justice and love of neighbor must include the common good.”

Connell was not alone among the faithful concerned by the church’s pursuit of taxpayer money. Parishioners in several cities have questioned church leaders who received government money for Catholic schools they then closed.

Elsewhere, a pastor in a Western state told AP that he refused to apply even after diocesan officials repeatedly pressed him. He spoke on condition of anonymity because of his diocese’s policy against talking to reporters and concerns about possible retaliation.

The pastor had been saving, much like leaders of other parishes. When the pandemic hit, he used that money, trimmed expenses and told his diocese’s central finance office that he had no plans to seek the aid. Administrators followed up several times, the pastor said, with one high-ranking official questioning why he was “leaving free money on the table.”

The pastor said he felt a “sound moral conviction” that the money was meant more for shops and restaurants that, without it, might close forever.

As the weeks passed last spring, the pastor said his church managed just fine. Parishioners were so happy with new online Masses and his other outreach initiatives, he said, they boosted their contributions beyond 2019 levels.

“We didn’t need it,” the pastor said, “and intentionally wanted to leave the money for those small business owners who did.”

WEATHERING A DOWNTURN

Months after the pandemic first walloped the economy, the 112 dioceses that release financial statements began sharing updates. Among the 47 dioceses that have thus far, the pandemic’s impact was far from crippling.

The 47 dioceses that have posted financials for the fiscal year that ended in June had a median 6% increase in the amount of cash, short-term investments and other funds that they and their affiliates could use for unanticipated or general expenses, AP found. In all, 38 dioceses grew those resources, while nine reported declines.

Finances in Raleigh and 10 other dioceses that took government assistance were stable enough that they did not have to dip into millions they had available through outside lines of credit.

“This crisis has tested us,” Russell Elmayan, Raleigh’s chief financial officer, told the diocese’s magazine website in July, “but we are hopeful that the business acumen of our staff and lay counselors, together with the strategic financial reserves built over time, will help our parishes and schools continue to weather this unprecedented event.” Raleigh officials did not answer direct questions from AP.

The 47 dioceses acknowledged a smaller amount of readily available assets than AP counted, though by their own accounting that grew as well.

The improving financial outlook is due primarily to parishioners who found ways to continue donating and U.S. stock markets that were rebounding to new highs. But when the markets were first plunging, officials in several dioceses said, they had to stretch available assets because few experts were forecasting a rapid recovery.

In Louisville, Charlotte and other dioceses, church leaders said they offered loans or grants to needy parishes and schools, or offset the monthly charges they assess their parishes. In Raleigh, for example, the headquarters used $3 million it had set aside for liability insurance and also tapped its internal deposit and loan fund.

Church officials added that the pandemic’s full toll will probably be seen in a year or two, because some key sources of revenue are calculated based on income that parishes and schools generate.

“We believe that we will not know all of the long-term negative impacts on parish, school and archdiocesan finances for some time,” Louisville Archdiocese spokeswoman Cecelia Price wrote in response to questions.

At the nine dioceses that recorded declines in liquid or other short-term assets, the drops typically were less than 10%, and not always clearly tied to the pandemic.

The financial wherewithal of some larger dioceses is underscored by the fact that, like publicly traded companies, they can raise capital by selling bonds to investors.

One was Chicago, where analysts with the Moody’s ratings agency calculated that the $1 billion in cash and investments held by the archdiocese headquarters and cemeteries division could cover about 631 days of operating expenses.

Graphic shows excerpt from Moody’s Investors Service analysis of the Catholic Bishop of Chicago. (AP Illustration/Peter Hamlin)

Graphic shows excerpt from Moody’s Investors Service analysis of the Archdiocese of New Orleans. (AP Illustration/Peter Hamlin)

Church officials in Chicago asserted that those dollars were needed to cover substantial expenses while parishioner donations slumped. Without paycheck support, “parishes and schools would have been forced to cut many jobs, as the archdiocese, given its liabilities, could not have closed such a funding gap,” spokeswoman Paula Waters wrote.

Moody’s noted in its May report that while giving was down, federal aid had compensated for that and helped leave the archdiocese “well positioned to weather this revenue loss over the next several months.” Among the reasons for the optimism: “a unique credit strength” that under church law allows the archbishop to tax parish revenue virtually at will.

In a separate Moody’s report on New Orleans, which filed for bankruptcy in May while facing multiple clergy abuse lawsuits, the ratings agency wrote in July that the archdiocese did so while having “significant financial reserves, with spendable cash and investments of over $160 million.”

Moody’s said the archdiocese’s “very good” liquid assets would let it operate 336 days without additional income. Those assets prompted clergy abuse victims to ask a federal judge to dismiss the bankruptcy filing, arguing the archdiocese’s primary reason for seeking the legal protection was to minimize payouts to them.

The archdiocese, along with its parishes and schools, collected more than $26 million in paycheck money. New Orleans Archdiocesan officials didn’t respond to written questions.

PURSUING AID

Without special treatment, the Catholic Church would not have received nearly so much under the Paycheck Protection Program.

After Congress let nonprofits and religious organizations participate in the first place, Catholic officials lobbied the Trump Administration for a second break. Religious organizations were freed from the so-called affiliation rule that typically disqualifies applicants with more than 500 workers.

Without that break, many dioceses would have missed out because — between their head offices, parishes, schools and other affiliates — their employee count would exceed the limit.

Among those lobbying, federal records show, was the Los Angeles Archdiocese. Parishes, schools and ministries there collected at least $80 million in paycheck aid, at a time when the headquarters reported $658 million in available funds heading into the fiscal year when the coronavirus arrived.

Catholic officials in the U.S. needed the special exception for at least two reasons.

Church law says dioceses, parishes and schools are affiliated, something the Los Angeles Archdiocese acknowledged “proved to be an obstacle” to receiving funds because its parishes operate “under the authority of the diocesan bishop.” Dioceses, parishes, schools and other Catholic entities also routinely assert to the Internal Revenue Service that they are affiliated so they can maintain their federal income tax exemption.

While some Catholic officials insisted their affiliates are separate and financially independent, AP found many instances of borrowing and spending among them when dioceses were faced with prior cash crunches. In Philadelphia, for example, the archdiocese received at least $18 million from three affiliates, including a seminary, to fund a compensation program for clergy sex abuse survivors, according to 2019 financial statements.

Cardinals and bishops have broad authority over parishes and the pastors who run them. Church law requires parishes to submit annual financial reports and bishops may require parishes to deposit surplus money with internal banks administered by the diocese.

“The parishioners cannot hire or fire the pastor; that is for the bishop to do,” said Connell, the priest, former accountant and canon lawyer. “Each parish functions as a wholly owned subsidiary or division of a larger corporation, the diocese.”

Bishops acknowledged a concerted effort to tap paycheck funds in a survey by Catholic researchers at Georgetown University. When asked what they had done to address the pandemic’s financial fallout, 95% said their central offices helped parishes apply for paycheck and other aid — the leading response. That topped encouraging parishioners to donate electronically.

After Congress approved the paycheck program, three high-ranking officials in New Hampshire’s Manchester Diocese sent an urgent memo to parishes, schools and affiliated organizations urging them to refrain from layoffs or furloughs until completing their applications. “We are all in this together,” the memo read, adding that diocesan officials were working expeditiously to provide “step by step instructions.”

Paycheck Protection Program funds came through low-interest bank loans, worth up to $10 million each, that the federal government would forgive so long as recipients used the money to cover about two months of wages and operating expenses.

After an initial $659 billion last spring, Congress added another $284 billion in December. With the renewal came new requirements intended to ensure that funds go to businesses that lost money due to the pandemic. Lawmakers also downsized the headcount for applicants to 300 or fewer employees.

A QUESTION OF NEED

In other federal small business loan programs, government help is treated as a last resort.

Applicants must show they couldn’t get credit elsewhere. And those with enough available funds must pay more of their own way to reduce taxpayer subsidies.

Congress didn’t include these tests in the Paycheck Protection Program. To speed approvals, lenders weren’t required to do their usual screening and instead relied on applicants’ self-certifications of need.

The looser standards helped create a run on the first $349 billion in paycheck funding. Small business owners complained that they were shut out, yet dozens of companies healthy enough to be traded on stock exchanges scored quick approval.

As blowback built in April, Treasury Secretary Steven Mnuchin warned at a news briefing that there would be “severe consequences” for applicants who improperly tapped the program.

“We want to make sure this money is available to small businesses that need it, people who have invested their entire life savings,” Mnuchin said. Program guidelines evolved to stress that participants with access to significant cash probably could not get the assistance “in good faith.”

Mnuchin’s Treasury Department said it would audit loans exceeding $2 million, although federal officials have not said whether they would hold religious organizations and other nonprofits to the same standard of need as businesses.

Graphic shows excerpt from a U.S. Department of the Treasury Paycheck Protection Program FAQ document. (AP Illustration/Peter Hamlin)

The headquarters and major departments for more than 40 dioceses received more than $2 million. Every diocese that responded to questions said it would seek to have the government cover the loans, rather than repay the funds.

One diocese receiving a loan over $2 million was Boston. According to the archdiocese’s website, its central ministries office received about $3 million, while its parishes and schools collected about $32 million more.

The archdiocese — along with its parishes, schools and cemeteries — had roughly $200 million in available funds in June 2019, according to its audited financial report. When that fiscal year ended several months into the pandemic, available funds had increased to roughly $233 million.

Nevertheless, spokesman Terrence Donilon cited “ongoing economic pressure” in saying the archdiocese will seek forgiveness for last year’s loans and will apply for additional, new funds during the current round.

Beyond its growing available funds, the archdiocese and its affiliates benefit from other sources of funding. The archdiocese’s “Inspiring Hope” campaign, announced in January, has raised at least $150 million.

And one of its supporting charities — the Catholic Schools Foundation, where Cardinal Sean O’Malley is board chairman — counted more than $33 million in cash and other funds that could be “used for general operations” as of the beginning of the 2020 fiscal year, according to its financial statement.

Despite these resources, the archdiocese closed a half-dozen schools in May and June, often citing revenue losses due to the pandemic. Paycheck protection data show four of those schools collectively were approved for more than $700,000.

The shuttered schools included St. Francis of Assisi in Braintree, a middle-class enclave 10 miles south of Boston, which received $210,000. Parents said they felt blindsided by the closure, announced in June as classes ended.

“It’s like a punch to the gut because that was such a home for so many people for so long,” said Kate Nedelman Herbst, the mother of two children who attended the elementary school.

Along with more than 2,000 other school supporters, Herbst signed a written protest to O’Malley that noted the archdiocese’s robust finances. After O’Malley didn’t reply, parents appealed to the Vatican, this time underscoring the collection of Paycheck Protection Program money.

“It is very hard to reconcile the large sums of money raised by the archdiocese in recent years with this wholesale destruction of the church’s educational infrastructure,” parents wrote.

In December, the Vatican turned down their request to overrule O’Malley. Spokesman Donilon said the decision to close the school “is not being reconsidered.”

Today, the three children of Michael Waterman and his wife, Jeanine, are learning at home. And they still can’t understand why the archdiocese didn’t shift money to help save a school beloved by the faithful.

“What angers us,” Michael Waterman said, “is that we feel like, given the amount of money that the Catholic Church has, they absolutely could have remained open.”

SecDef Austin Fires all Advisory Board(s) Members

Dismissed were hundreds of members of 42 Pentagon advisory boards. 42 separate advisory boards? Really?

Current members being told to step down are only those appointed by the Pentagon and not those appointed by the White House or Congress. For example four people appointed by the Pentagon to a congressionally mandated commission on stripping the names of Confederate generals from military bases will be removed but others on that panel appointed by Congress will remain.
A review of all the boards, and whether they are still needed, will now be the focus before new members are named.

The 42 advisory boards cost taxpayers millions of dollars each year and some of their work is believed to be potentially redundant, which added to the need for the review.
The action effectively removes, for now, several hundred people serving on boards who advise on everything from defense policy, science, innovation, health issues, coastal engineering, sexual misconduct and diversity and inclusion.

WASHINGTON—Defense Secretary Lloyd Austin dismissed every member of the Pentagon’s policy advisory boards Monday, ousting last-minute Trump administration nominees as well as officials appointed by previous administrations.

Lloyd Austin Confirmed As 1st Black Pentagon Chief In U.S. History :  President Biden Takes Office : NPR

By removing every member, Mr. Austin avoided selectively firing those appointed by the Trump administration. The defense chief will name new members to each of the least a dozen boards in the coming weeks.

The move was foreshadowed last week when Mr. Austin suspended the onboarding process for Trump administration nominees to Pentagon advisory boards, effectively preventing them from being seated.

Mr. Austin’s directive last week applied to Trump nominees who were still in the security clearance process. Among those who were affected then were Corey Lewandowski, former President Donald Trump’s 2016 presidential campaign manager, and David Bossie, a former Trump deputy campaign manager, both of whom had been named to the Defense Business Board, an unpaid group that advises the defense secretary and other leaders on business practices.

Because of their potential access to classified information, it can take months for someone to get through the security clearance process and formally join a board. Mr. Austin’s directive last week suspended that process.

In the last weeks of the Trump administration, then acting Defense Secretary Chris Miller named at least a dozen supporters of President Trump to various Pentagon advisory boards.

Those included retired Brig. Gen. Anthony Tata, who weeks earlier had been rejected by the Senate for consideration as the Pentagon’s top policy official, even as he served in that position since June in an acting capacity. Senators and some retired generals expressed concern over inflammatory tweets he made years ago on Islam, President Barack Obama and Democratic lawmakers.

The advisory boards, some of which date back to at least the 1950s, were intended to be bipartisan and offer a diversity of opinion to Pentagon leaders on potential policies.

Among those removed from policy boards by Mr. Miller were former Secretaries of State Madeleine Albright and Henry Kissinger, former House Majority Leader Eric Cantor (R., Va.) and former Rep. Jane Harman (D., Calif.), a onetime senior Democrat on the House Intelligence committee.

 

Biden Going Agency by Agency and Undoing Trump’s Rescission Orders

First, Charles Payne announced that President Biden has rerouted $30 billion in the Farmers Fund under President Trump to climate change. The fund that President Trump established was to be used on agricultural trade issues if needed to protect farmers. Biden has designated it for climate change.

The Biden administration wants to use the Agriculture Department money to tackle climate change, support restaurants and kickstart other programs without waiting for Congress. Go here for the report.

Long hidden in obscurity as a Depression-era financial institution, the Commodity Credit Corp. is shaping up as one of the first focal points for how the Biden administration is quickly revamping flexible programs left behind by former President Donald Trump.

Before the Trump era, the CCC was used in narrow ways to support farm income and prices, like helping cotton growers with ginning costs and purchasing cheese to boost dairy farmers. It’s also used to fund certain conservation programs, foreign market development, export credit and commodity purchases.

It became a signature tool in the last administration, which used it to dole out billions in aid to farmers suffering from Trump’s trade wars and tariffs. It was also dipped into to provide financial relief to farmers hit by the pandemic.The U.S. Department of Agriculture (USDA) will use funds being made available from the Commodity Credit Corporation (CCC) Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities. USDA has incorporated improvements in CFAP 2 based from stakeholder engagement and public feedback to better meet the needs of impacted farmers and ranchers.Farm Subsidies In America with Pros, Cons, and Impact

The Biden Executive Order is here. 

As for the other agencies:

President Biden on Sunday formally revoked his predecessor’s effort to rescind $27 billion in funding spread across two-dozen federal agencies, unfreezing the money for immediate expenditure.

Just days before he left office, President Trump issued a rescission request under the 1974 Congressional Budget and Impoundment Control Act. Trump had warned he would issue such a proposal when he signed the fiscal 2021 omnibus spending package in December, which narrowly averted a shutdown. His request triggered a 45-day freeze on the funds, which Biden lifted in his Sunday action.

The previous White House, which noted the rescission package was the largest ever proposed, identified the funds as “wasteful and unnecessary spending” and amounts “no longer needed for the purposes for which they were appropriated.” It focused largely on international aid efforts through the State Department and U.S. Agency for International Development, but the 73 targeted programs also included those related to climate research, federal student aid and renewable energy.

The 1974 rescission law allows the president to propose to rescind funding previously approved by Congress. Lawmakers have 45 days to consider the request and if they do not act to support the rescissions during that window, the request is denied. The Office of Management and Budget can direct agencies not to spend the funding proposed for rescission for the entire 45-day period, regardless of when Congress acts. The Trump White House briefly floated a rescission in 2019 less than 45 days before the end of the fiscal year, which critics derided as illegal as it would have enabled the administration to freeze out funds from ever being spent. That followed a 2018 effort to rescind $15 billion in largely foreign aid funding, which the House approved but was narrowly rejected by the Senate.

The most recent rescission package, where funds are now unfrozen, included accounts within the following departments and agencies:

  • Agriculture
  • Commerce
  • Education
  • Energy
  • Health and Human Services
  • Homeland Security
  • Interior
  • Justice
  • Labor
  • State
  • Treasury
  • African Development Foundation
  • Commission of Fine Arts
  • Corporation for National and Community Service
  • District of Columbia
  • Environmental Protection Agency
  • Inter-American Foundation
  • Millennium Challenge Corporation
  • National Endowments for the Arts and Humanities
  • National Gallery of Art
  • Peace Corps
  • Presidio Trust
  • U.S. Agency for International Development
  • Army Corps of Engineers
  • Woodrow Wilson International Center for Scholars
  • Legislative Branch

Biden Leaving Troops in Afghanistan Past the May Deadline

For many many months, the Trump administration was negotiating a peace deal with the Taliban. Frankly, all that the Taliban has agreed to, they have violated. Trump also issued a schedule to lower troop levels in Afghanistan to only a small tight residual number in May of 2021 along with contractors. With the new possible threat(s) of the Taliban and their growing connection to al Qaeda, Biden has decided to leave troop levels in the region at the present level with an increase in Syria and possibly Iraq. All the while, Iran just hosted a Taliban leader for talks where the topic(s) are unknown. Further, Taliban officials have been meeting in Moscow with Russian officials. Those details are found here. 

President Biden also has another immediate issue before him and that is the release of a U.S. contractor that went missing in Afghanistan about a year ago. Mark Frerichs, a navy veteran went missing about a year ago while he was working as a contractor on an engineering project. It is thought he is in the custody of the Haqqani network. The U.S. State Department is offering a $5 million reward that leads to Frerichs’ return. 

So, it is rather fitting that just this week, a very old FOIA request for former Defense Secretary Donald Rumsfeld documents have been released. Frankly, the questions which were referred to at the Pentagon as ‘snowflakes’ reflects his frustration of the layers of bureaucracy  within the Department of Defense and his anger at getting real answers and challenging the quality of intelligence reports. Sound familiar? It is clearly a problem that after 20+ years has not found a quality solution. Just read a few of his snowflakes and judge for your self.

***Donald H. Rumsfeld - U.S. PRESIDENTIAL HISTORY

35 of the most notable items from the new collection is below from the National Archives. 

A follow-on DNSA publication covering the rest of Rumsfeld’s tenure as secretary will appear through ProQuest later in 2021.

One such snowflake was written on March 3, 2003. At 8:16 AM, Rumsfeld wrote to Senior Military Assistant LTG Bantz J. Craddock and Department of Defense General Counsel William Haynes with the subject “KSM”. He wanted to know, “Do we know where the information to find Khalid Sheikh Mohammed came from? Was it from GTMO detainees?” There is no response from either Craddock or Haynes in the DOD release to the Archive, though Rumsfeld’s question is likely a push back to the false claims made by CIA Director George Tenet that the Agency’s resort to torture of Abu Zubaydah led to the capture of Khalid Sheikh Mohammed.

The Senate Select Committee on Intelligence torture report would later reveal that key intelligence on KSM as the mastermind of the 9/11 attacks came from the FBI’s non-coercive, rapport-building interrogation of Abu Zubaydah.[1] This success was prior to the CIA’s contract psychologists, James Mitchell and Bruce Jessen, taking over the interrogation at the CIA “Detention Site Green” in Thailand, which was created to house Zubaydah in 2002.  Their approach to Zubaydah would include 83 water board sessions yet fail to produce any valuable intelligence.  CIA clandestine services chief Jose Rodriguez (and perhaps Gina Haspel, who would later become DCI, though CIA redactions of documents continue to obscure her role) ordered the destruction of the torture videotapes, commenting that “the heat from destoying [sic] is nothing compared to what it would be if the tapes ever got into public domain.”

Later on March 3, under the subject “Contingencies”, Rumsfeld wrote to Under Secretary of Defense for Policy Doug Feith, stating, “We need to plan what we will do if Saddam Hussein is captured. We need to plan what we will do if we catch an imposter.” There is no record of Feith’s answer in the DOD release to the Archive.

Throughout Rumsfeld’s tenure, his snowflakes circulated daily through the highest levels of the Pentagon. With scant limitations on their subject matter, the all-encompassing documents are sometimes an hourly paper trail inside the Office of the Secretary of Defense during six years of tremendous consequence for U.S. foreign policy. The declassified documents also provide an account that at times contradicts DOD public statements.  For example, The Washington Post published a selection of the memos in the six part series “The Afghanistan Papers” in September 2019 revealing that officials misled the American public about the war in Afghanistan.

The entire corpus of snowflakes also details many aspects of the day-to-day operations of the Pentagon, the modernization of the U.S. armed forces, and Rumsfeld’s personal agenda against bureaucracy. “Bureaucracy is driving people nuts,” he wrote in an April 8, 2002, memo at 7:41AM. “If we can take two or three layers out of this place, we will be a lot better off.” In a separate April 8 letter, the secretary suggested cutting all major Pentagon programs by at least 20 percent. (The DOD budget increased by 37.54 percent between FY2001 and FY2006.) On March 11, 2002, Rumsfeld wrote to colleagues, “I am getting tired of seeing the word ‘joint’ everywhere.”

Rumsfeld, Snowflake by Snowflake - Open Source with ...

Other topics in the collection include:

  • the military budgeting process and efforts to rein in defense spending;
  • military planning, procurement, and expenditures;
  • nuclear issues – weapons, proliferation, safety;
  • decision making on military wages, benefits, tours of duty, and veterans issues;
  • military intelligence;
  • Defense Department relations with the CIA and Homeland Security;
  • Rumsfeld’s relations with the State Department and National Security Council;
  • U.S. relations with NATO;
  • U.S. military relations with Russia, former Soviet republics, and other countries;
  • Rumsfeld’s interactions with the news media, Congress, and the public;
  • Guantanamo detainees, interrogation, and torture;
  • concerns about the International Criminal Court and U.S. liability for war crimes;
  • the hunt for Osama bin Laden and other terrorists;
  • the Joint Strike Fighter program; and
  • the emergency landing of a U.S. EP-3 at Hainan Island in 2001

Donald Rumsfeld’s Snowflakes, Part 1: The Pentagon and U.S. Foreign Policy, 2001-2003 will be a critical research tool for historians and will be available through many college and research libraries. Part II, which covers the last three years of Rumsfeld’s tenure as secretary of defense from 2004 to 2006, will be published in 2021. Learn more about accessing the Digital National Security Archive through your library online and how to request a free trial here.

 

March 11, 2002
April 8, 2002
September 12, 2003
October 23, 2003

A few more:

October 10, 2001
Rumsfeld requests a daily report on the location of Osama bin Laden.

 

November 8, 2001
Rumsfeld inquires: “Why doesn’t Pakistan sever its relationship with [sic] Taliban?”

 

November 29, 2001
Rumsfeld accuses career employees in the OSD of undermining his decisions and working too slowly.

 

January 5, 2002
Rumsfeld complains to George Tenet about the CIA.

 

February 15, 2002
Rumsfeld directs his staff to develop a white paper on detainees and the Geneva Conventions.

 

March 11, 2002
Rumsfeld suggests further classification review of the already pre-reviewed Annual Report to the President and the Congress.

 

March 11, 2002
Rumsfeld says the DOD annual report is not conclusive or upbeat enough.

 

March 12, 2002
Rumsfeld recounts his conversation with Russian MoD Sergei Ivanov at a Washington Wizards basketball game.

 

March 14, 2002
Rumsfeld asks how to fix the requirements process.

 

March 16, 2002
Rumsfeld inquiries into U.S. nuclear policy.

 

March 26, 2002
Under the subject “Business As Usual”, Rumsfeld questions whether the Department should cut educational programs while at war.

 

March 28, 2002
Rumsfeld pushes to lift restrictions on contractors providing force protection.

 

March 28, 2002
Rumsfeld proposes a weekly meeting on Afghanistan, stating that it is “drifting”.

April 3, 2002
Rumsfeld’s thoughts on the Middle East.

 

April 8, 2002
Rumsfeld instructs his staff to create a list of all the major “processes” at the Pentagon and shorten them by atleast 20 percent.

 

April 9, 2002
Rumsfeld expresses concern about a “zero defect mentality” in promotion process.

 

 

April 12, 2002
Rumsfeld ruminates on the creation of a new Homeland Security Department.

 

April 15, 2002
Rumsfeld details a conversation with Henry Kissinger about the ICC.

 

April 15, 2002
Rumsfeld contacts Tenet about the ICC.

 

April 23, 2002
Rumsfeld considers possibly renegotiating a Russia-NATO arrangement.

 

April 23, 2002
Rumsfeld proposes using contractors to train the Afghan army.

 

April 23, 2002
Rumsfeld asks if a DOD chart of the PPB system is a joke, or whether it should be.

 

May 5, 2002
Rumsfeld tells Hank Crumpton to “speak up”.

 

May 22, 2002
Rumsfeld circulates a letter comparing interrogation techniques in Afghanistan to Guantanamo.

 

August 8, 2002
Rumsfeld questions whether it is right for pilots to use amphetamines.

 

August 17, 2002
Rumsfeld ruminates on the U.S. and Western Europe “stopping proliferation, reducing weapons of mass destruction and contrubitng to peace and stability” around the world.

 

August 19, 2002
Rumsfeld addresses the President, Vice President, CIA Director, and National Security Advisor on U.S. policy towards Iran and North Korea.

 

October 1, 2002
Rumsfeld sends handwritten notes from an interview with a detainee to Fieth.

 

March 3, 2003
Rumsfeld requests a contingency plan for the possibility of capturing an imposter of Saddam Hussein.

 

March 3, 2003
Rumsfeld contacts Tenet about the intelligence that led to capturing KSM.

 

March 26, 2003
Rumsfeld requests material to brief the President privately on a post-Saddam Iraq.

 

Biden is staffing a Supreme Court Cmte led by Bob Bauer

Supreme Court ends Trump emoluments lawsuits

You may remember Bob Bauer when he was a trusted Obama White House lawyer….and oh yeah he is married to Anita Dunn, famous for including in a speech that 2 of her most favorite people were Mother Teresa and Mao Zedong. Yeah, great couple right?

Mr. and Mrs. Triple Evils, Obama, Perkins Coie Law Firm And Fusion GPS ... It should also be noted that Anita Dunn was the top Biden campaign advisor.

Yeesh…meanwhile….

Bauer is Professor of Practice and Distinguished Scholar in Residence at NYU Law, and Co-Director of NYU’s Legislative and Regulatory Process Clinic. He served as White House Counsel to President Obama, and returned to private practice in June 2011. In 2013, the President named Bauer to be Co-Chair of the Presidential Commission on Election Administration, which in January of 2014 submitted to the President its findings and recommendations in “The American Voting Experience: Report and Recommendations of the Presidential Commission on Election Administration.”

Bauer was General Counsel to Obama for America, the President’s campaign organization, in 2008 and 2012. Bob has also served as co-counsel to the New Hampshire State Senate in the trial of Chief Justice David A. Brock (2000) and counsel to the Democratic Leader in the trial of President William Jefferson Clinton (1999).

He is the author on books on campaign finance law and articles on various topics for law reviews and periodicals. He is a contributing editor of Lawfare and writes legal commentary for Just Security, and has published opinion pieces in The New York Times, The Washington Post, The Atlantic and other publications.

In part: Among those who will be on the commission are Cristina Rodríguez, a professor at Yale Law School and a former deputy assistant attorney general in the Obama Department of Justice, who will join Bauer as co-chair. Caroline Fredrickson, the former president of the American Constitution Society, and Jack Goldsmith, a Harvard Law School professor and a former assistant attorney general in the Bush Department of Justice, will also serve on the commission, those familiar with discussions said.

Fredrickson has hinted that she is intellectually supportive of ideas like court expansion. In 2019, she said in an interview with Eric Lesh, the executive director of the LGBT Bar Association and Foundation of Greater New York: “I often point out to people who aren’t lawyers that the Supreme Court is not defined as ‘nine person body’ in the Constitution, and it has changed size many times.”

Rodríguez’s opinions on court reforms are less clear. Goldsmith’s selection, meanwhile, is likely to be the one to frustrate progressives. A senior fellow at the Hoover Institution, Goldsmith did not support Trump and is a friend and co-author of Bauer. But he was a vocal advocate of Brett Kavanaugh’s appointment to the high court — an appointment that sparked Democratic advocacy for expanding the number of Supreme Court seats.

“He will also be an influential figure within the Supreme Court building,” Goldsmith wrote in 2018 about Kavanaugh in a Time article titled, “Brett Kavanaugh Will Right the Course of the Supreme Court.” “He is a brilliant analyst with a deep scholarly and practical knowledge of the law. His legal opinions are unusually accessible. He is a magnanimous soul.”

Bauer, who is not planning to go into the administration full-time, is himself a proponent of term limits for federal judges. He has been helping with the creation of the commission and, according to a person familiar with the deliberations, initially proposed the idea of forming a commission to study the issue of court reform.