Category Archives: Industry Jobs Oil Economics

US Patent Office, Fraudulent Employees Play Golf

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Is there any government agency that is without scandal? The fleecing of the taxpayer is without limits.

The 29 page investigation report is here.

Since we tend to forget, how about a reminder that Barack Obama said he would go through the budget line by line.

Well in 2011: GOP: Obama never scoured budget ‘line by line’

The Hill: House Republicans are arguing President Obama broke a promise to scour the federal budget “line by line” to look for savings. 

Obama made the promise during the 2008 campaign, but House Energy and Commerce Investigations subcommittee Chairman Cliff Stearns (R-Fla.) and committee Republicans insisted Wednesday there is no evidence that the Office of Management and Budget (OMB) conducted such an exhaustive review.

Stearns also said that the $17 billion in program savings Obama’s budget office found was half of that found in the Bush administration.

Republicans said that Obama’s review does not differ from the ordinary presidential budget process and that the president has exaggerated any savings found by including tax increases and savings from drawing down the wars in Iraq and Afghanistan.

Congressional Research Service expert Clinton Brass said he would be “surprised” if the president would be able to take the time to read his entire budget. He testified that the administration has produced a list of programs to be terminated or reduced, but that such a list was also produced in prior administrations.

Democrats at a Wednesday hearing said Obama was speaking figuratively when he said he would conduct a line by line review.

“If this is a ‘gotcha’ hearing on whether the administration has actually done a line-by-line review, I reject its premise,” Rep. Henry Waxman (D-Calif.) said. “There is no question if it has examined the budget closely … I am afraid my colleagues have misunderstood a figure of speech.”

Republicans were irate that OMB would not send Budget Director Jack Lew to explain whether a line-by-line review was conducted. Committee ranking member Rep. Diana DeGette (D-Colo.) also said she regretted that OMB would not send anyone to testify.

Committee staff said that OMB told them Lew does not testify to subcommittees, and since there is no confirmed deputy director, there is no one available to testify.

At the hearing, Waxman said Congress should look in the mirror at its own budget failings. He pointed out that Speaker John Boehner (R-Ohio) promised to do away with omnibus spending bills and is now contemplating one. He also said Congress has delegated important responsibilities to the deficit supercommittee.

*** None of these things are working out well at all, certainly since 2011. So how about that Patent Office?

Government Employee Paid to Golf, Play Pool

Half of worker’s hours at the U.S. Patent Office were fraudulent
FreeBeacon:

Taxpayers paid a government worker at the U.S. Patent Office to play golf and pool, according to an investigation by the Commerce Department’s Office of Inspector General (OIG) that found nearly half of the employee’s billed hours were fraudulent.

The employee, who worked as a patent examiner in the U.S. Patent and Trademark Office (USPTO), earned over $70,000 a year despite “egregious time and attendance abuse,” which was not checked by managers at the office. The employee, referred to in the report as “Examiner A,” resigned after learning of the OIG’s investigation.

“According to the evidence, Examiner A received payment for over 18 full weeks of work, in aggregate, that he did not actually work,” the audit said. “Ultimately, USPTO management’s system of internal controls did not detect Examiner A’s time and attendance abuse; to the contrary, these issues did not come to light until a whistleblower submitted anonymous notes to the examiner’s supervisor and another manager.”

The anonymous letter in August 2014 that sparked the investigation said the employee “never shows up to work,” “seems to get away with anything,” and that he would only come into the office at the end of every quarter to submit “garbage” work.

“The note questioned how the supervisors could ‘allow this type of behavior’ to occur and why Examiner A had not ‘been fired by now for performance,’” the OIG said.

In all, the employee “committed at least 730 hours of time and attendance abuse, resulting in the payment of approximately $25,500 for hours not worked in FY 2014 alone.” The majority of the hours he did not enter the office building, or use his government-issued laptop.

The abused hours accounted for 43 percent of the employee’s total hours for the year. The hours amounted to 91 eight-hour workdays, or roughly 3 months. The OIG recorded 58 full workdays where there was no evidence that he entered the building.

However, the OIG said the employee likely got away with being paid for more hours he was not working because the employee was “given the benefit of the doubt.”

The employee was paid for full days of work, even though he often left to “hit golf balls at Golf Bar, play pool, or socialize at restaurants.”

The OIG examined instant messages between the employee and his coworkers about hitting the driving range.

One message occurred just before 1 p.m., after the employee spent less than 3 hours at the USPTO office.

“Ok, did u wanna [hit golf balls at Golf Bar] today at all?” he said. His coworker replied, “actually yeah, let’s just go there now?”

“I’ll walk over lemme just hit the restroom,” the employee said.

The other employee also said he was probably leaving soon anyway, saying, “godda go watch walking dead, etc.”

On another occasion the employee tried to convince a colleague to leave to play pool because he was “bored,” but they declined because they were “writing up a case.”

“Call me later if you wanna chill,” he said.

The USPTO did not review the employee’s time and attendance records despite “numerous red flags” the OIG said. The employee also was not fired despite receiving an “unacceptable” performance rating in 2012, 2013, and 2014, and “numerous complaints” about his work.

The employee’s supervisor said he “never suspected” that he was violating work policies, and cited that numerous employees at the USPTO have flexible work schedules that allow telecommuting.

The OIG has found attendance abuse in the agency before. Paralegals working for the agency were “paid to do nothing,” passing their time watching Netflix, doing laundry, and shopping online, costing taxpayers at least $5 million.

The audit warned that telework abuse could be widespread, given that nearly 10,000 patent office employees work from home at least once a week, and 5,000 work from home full time, or four to five days each week.

“While this report presents a case study of only one individual’s time and attendance abuse at USPTO, it illustrates the difficulties in preventing and detecting such activity in USPTO’s geographically dispersed workforce,” the OIG said.

“Although the USPTO has touted the benefits of its telework program, such as a reduction in rent, increases in employee satisfaction and retention, and a workforce much less affected by severe weather and traffic, this and other OIG efforts show that these programs also carry risks for abuse,” they said.

The OIG said the agency should try to recover the $25,500 in fraudulent pay through the legal system.

 

Who is at Fault When it Comes to Syria Refugees?

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This matter comes down to no policy on the war in Syria and the misguided, yet no less corrupt leaders in this matter include the National Security Council at the White House, Barack Obama himself and the failed control and management at the State Department which began with Hillary Clinton and now with John Kerry.

The United Nations is at the core of the mismanagement and Western countries are left to clean up the mess, while some are now saying NO.

U.N. Calls on Western Nations to Shelter Syrian Refugees

“In the case of Syrian refugees, our intelligence on the ground is alarmingly slim, making it harder to identify extremists,” said Representative Michael McCaul, Republican of Texas and chairman of the House Homeland Security Committee.

The United Nations high commissioner for refugees, António Guterres, has stepped up calls for industrialized countries, including the United States, to shelter 130,000 Syrian refugees over the next two years.

The figure is a fraction of the nearly four million refugees who have poured into the countries bordering Syria — chiefly Jordan, Lebanon and Turkey — straining their resources and plunging many displaced people into poverty.

So far, the high commissioner’s pleas have not been met. Governments around the world have promised to take in just under two-thirds of what the United Nations is urging, while a great many more Syrians have chosen to make perilous journeys by land and sea in search of asylum in Europe. More here from the New York Times.

McCaul Says Admitting Unvetted Syrian Refugees into the U.S. is “Very Dangerous”

WASHINGTON, D.C. – Chairman Michael McCaul, of the House Homeland Security Committee, wrote a letter to President Obama last Thursday expressing concerns over the Administration’s announced plans to resettle some 2,000 Syrian refugees in the United States this year. Terrorists have made known their plans to attempt to exploit refugee programs to sneak terrorists into the West and the U.S. homeland. Chairman McCaul’s letter points out the potential national security threat this poses to the United States.

Chairman McCaul: “Despite all evidence towards our homeland’s vulnerability to foreign fighters, the Administration still plans to resettle Syrian refugees into the United States. The Director of the National Counterterrorism Center and the Deputy Director of the FBI both sat before my Committee this Congress and expressed their concern with admitting refugees we can’t properly vet from the global epicenter of terrorism and extremism in Syria. America has a proud tradition of welcoming refugees from around the world, but in this special situation the Obama Administration’s Syrian refugee plan is very dangerous.”

Read Chairman McCaul’s letter HERE.

 

The Subcommittee on Counterterrorism and Intelligence will hold a hearing on June 24th to examine the refugee resettlement program and discuss vulnerabilities to our security exposed by the Administration’s plan.

It was last year that Barack Obama lifted restrictions on the refugee program.

U.S. eases rules to admit more Syrian refugees, after 31 last year

President Barack Obama’s administration announced on Wednesday that it had eased some immigration rules to allow more of the millions of Syrians forced from their homes during the country’s three-year civil war to come to the United States.

Only 31 Syrian refugees – out of an estimated 2.3 million – were admitted in the fiscal year that ended in October, prompting demands for change from rights advocates and many lawmakers.

Hundreds of thousands of Syrians have been taken in by neighboring countries such as Jordan, Lebanon and Turkey.

The rules changes granted exemptions on a case by case basis to the “material support” bar in U.S. immigration law, according to an announcement in the Federal Register signed by Secretary of State John Kerry and Jeh Johnson, the Secretary of Homeland Security.

That bar had made it impossible for anyone who had provided any support to armed rebel groups to come to the United States, even if the groups themselves receive aid from Washington.

The advocacy group Human Rights First said, for example, that the existing law had been invoked to bar a refugee who had been robbed of $4 and his lunch by armed rebels, and a florist who had sold bouquets to a group the United States had designated as a terrorist organization.

“These exemptions will help address the plight of Syrian refugees who are caught up in the worst humanitarian crisis in a generation,” Illinois Senator Richard Durbin, chairman of the U.S. Senate subcommittee on human rights, said in a statement.

It was not immediately clear how many Syrians would be affected by the rules change.

By early January, 135,000 Syrians had applied for asylum in the United States. But the strict restrictions on immigration, many instituted to prevent terrorists from entering the country, had kept almost all of them out.

Washington has provided $1.3 billion in humanitarian assistance to aid Syrian refugees. This year, the United Nations is also trying to relocate 30,000 displaced Syrians it considers especially vulnerable. Witnesses at a Senate hearing last month had testified that Washington would normally accept half.

So Long to the Oreo Cookie

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A piece of Americana has taken the route south, Mexico. May we suggest the Hydrox cookie of yester-year?

Maybe at issue is the corporate tax structure. Maybe it is the increase in the misguided minimum wage. Maybe it is the diving work ethic. Maybe it is Michelle Obama’s attack on food. Maybe those liberal mayors like New York’s former mayor Bloomberg all regulating free choice of food. Maybe it is all that re-tooling of nutritional food labels. Maybe it is all of those.

How US Sugar Policies Just Helped America Lose 600 Jobs

The manufacturer of Oreo cookies recently announced plans to move production of Oreos from Chicago to Mexico, resulting in a loss of 600 U.S. jobs.

This should be a wake-up call to defenders of the U.S. sugar program and other job-destroying trade barriers.

The leading ingredient in Oreos is sugar, and U.S. trade barriers currently require Americans to pay twice the average world prices for sugar.

Sugar-using industries now have a big incentive to relocate from the United States to countries where access to their primary ingredient is not restricted.

If the government wants people making Oreo cookies and similar products to keep their jobs, a logical starting point would be to eliminate the U.S. sugar program, including barriers to imported sugar.

This obvious connection between the lost jobs and sugar quotas was missed by many observers. According to one online commenter: “This is why tariff[s] on products coming to U.S must be raised.”

That’s backwards. When protectionist policies like the U.S. sugar program lead to offshoring, the response shouldn’t be to pass new laws to discourage such offshoring or to raise tariffs even higher. The response should be to eliminate government policies that encourage offshoring in the first place.

The loss of Oreo cookie jobs should reinforce a lesson on the job-destroying aspect of protectionist trade policies.

According to a 2006 report from the government’s International Trade Administration: “Chicago, one of the largest U.S. cities for confectionery manufacturing, has lost nearly one-third of its SCP manufacturing jobs over the last 13 years. These losses are attributed, in part, to high U.S. sugar prices.”

That lesson appears to be lost on unions that are supposed to represent the workers losing their jobs in Chicago.

For example, The Bakery, Confectionery, Tobacco Workers and Grain Millers Union consistently has opposed free trade agreements with sugar-producing countries like Australia, Brazil, and Mexico—the kind of trade deals that just might protect their members’ jobs.

So that’s how the cookie crumbles.

2014….the Comeback

The Oreo-buster is back.

Hydrox cookies, those Oreo-like chocolate sandwich cookies, could reappear on store shelves as early as September, says Ellia Kassoff, CEO of Leaf Brands, which recently acquired the rights to the unused Hydrox trademark.

“The cosmic difference between Hydrox and Oreo is that Hydrox is a little more crispy; a little less sugary and stands up better in milk,” says Kassoff, who will make the official announcement later this month at the Sweets & Snacks Expo in Chicago on May 20.

Even in a new world of nutritional consciousness, there is little evidence that America’s sweet tooth is fading. Sales of packaged cookies and baked goods are expected to top $17 billion by 2017 — up from $13 billion in 2012, reports Packaged Facts. While the return of Hydrox is expected to be a hit with Baby Boomers who may fondly remember the brand — formerly owned by Kellogg’s, Keebler and Millennials who are not very familiar with the cookie brand, which hasn’t been regularly sold on store shelves in almost a decade.

“We’ll use social media to reach out to Millennials,” says Kassoff. The 46-year-old CEO says that he likes to acquire old brands or trademarks that still have fans. “We recycle brands that get left on the side of the road.”

But the Hydrox brand has special meaning to him. As a young kid raised by parents who were Orthodox Jews, he was only permitted to eat Hydrox — not Oreos — because, he says, at the time, Oreos were not kosher but Hydrox were. Today, both are kosher.

The move by Leaf Brands — which also owns trademarks to Astro Pops, Wacky Wafers and Farts Candy — comes just two years after giant Oreo celebrated its 100th birthday. Little-known, however, is that Hydrox was the original creme-filled chocolate sandwich cookie when it debuted in 1908 — followed four years later by Oreo.

But executives at Mondelez, which owns the Oreo brand, are hardly showing any signs of concern. “Oreo is America’s favorite cookie,” says Laurie Guzzinati, a company spokeswoman. She declined to comment specifically on the return of Hydrox. Oreo sales, which exceed $2 billion globally and $1 billion in North America, have grown double-digits in the U.S. for the past two years.

Its been years since Oreo had a genuine rival on the shelf. Kellogg stopped making Hydrox in 2002. Then, in 2008, when Hydrox turned 100, Kellogg briefly resumed distribution, but only for a limited time.

Hydrox still has an online fan page, and a few months ago, Bill Burnett, of Salina, Okla., posted this wishful note about Hydrox: “My brother and I loved them. I never got a taste for the inferior “Oreo,” which was far less tasty as the wonderful Hydrox. I think I’ve only bought one package of them in 50 years! Bring Hydrox back again!”

In fact, says Kassoff, it’s fans like Burnett who convinced him to bring back the brand. “I hear from all of them,” he says. “I know millions of people are waiting for the product.”

But unlike the cookies giants, which typically must sell at least $100 million worth of a brand for it to be an even modest success, Burnett says he can sell a fraction of that and do just fine.

The pricing will be roughly where Hydrox was for years: less expensive than Oreos but more expensive than store brands. If a 14-ounce package of Oreos retails for about $4; Hydrox will be $3 and store brand sandwich cremes often cost about $2, he says.

But success won’t come simply. At least one brand guru says Hydrox has lots of work to do. “Oreo conveys round and is fun to say and hear. Hydrox sounds scientific and medicinal … not appetizing at all,” says Steven Addis, CEO of Addis. “Oreo has become part of the fabric of America. Like Coke. This makes it somewhat unassailable, even from a superior product.”

 

 

UN is Whining About Immigration Crimes, So Blame Obama

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The United Nations published a dispatch on the sexual crimes of illegal immigrants while in detention. So….rather than whine about Donald Trump, hey UN, go knock on the doors of the White House and that of Jeh Johnson’s office.

At least Donald Trump deserves real praise for raising the verbal flags on the issue of immigration.

Sheesh, get a load of this.

Violence Against Women is the Dark Underbelly of The USA’s Migrant Detention System

Donald Trump is fond of ascribing violence in American cities to immigrants. He has even gone so far as to propose a Constitutional amendment that would erase the bedrock law of giving citizenship to any baby born on American shores.

But what about violence inflicted on migrants once they crossed the border?  The fact is,  many who come to the USA fleeing violence–particularly women–are subject to abuse upon arrival.

Central American women, detained in Texas last year, alleged sexual abuse in detention. Many were asylum-seekers. Some had suffered sexual violence back home. But the nightmare was not over. Guards took them from their cells for sex, women said. They groped mothers in front of their children. Playing on detainees’ desperation, guards told women they would help them once released – but in exchange for sex.

The horror stories hardly stop there. Transgendered women especially are at risk. Despite identifying as female, they are often placed in all-male units. Nicoll Hernández-Polanco, one transgendered woman detained in Arizona, fled Guatemala seeking asylum from persecution based on gender identity. In six months in all-male detention, she alleged that male guards constantly groped and insulted her. Another male detainee sexually assaulted her. When she protested these conditions, she was put in solitary confinement, she said.

These are only a few of many more sexual abuse allegations. The Government Accountability Officeinvestigated over 200 such complaints filed from 2009 to 2013. Yet even this number is an underestimate. Detainees often avoid reporting incidents, fearing retaliation or re-traumatization.

The sexual abuse of migrants in detention centers is the dirty underbelly of the USA’s migrant detention system. It’s a problem that has been known to authorities for years, yet there has not been sufficient effort to clamp down on these kinds of criminal activities that prey on deeply vulnerable women.

So what can be done to stop the abuse?

For starters, freeing certain detainees would probably help. Last month, a federal judge ordered the Department of Homeland Security (DHS) to release mothers and children detained together. (The Texas women who alleged sexual abuse had been in such a family-detention center.) While a welcome change, this one step is far from a solution. Thousands of women are still detained. They are still potential victims of abuse.

There are broader, systemwide changes that might also push the needle in the right direction.

For one, the DHS does not follow guidelines set by the Prison Rape Elimination Act (PREA). These rules include more checks, training, and restrictions on guards. A first step is to improve compliance with PREA. Yet even that would only go so far. Detainees, like prisoners, are inherently vulnerable to abuse.

Also, many detainees are simply waiting to go to court. They have been convicted of no crime and pose no security threat. Detention is a drastic method just to ensure court attendance. Detainees might stay locked up for months. Each day they spend in detention, they remain at risk of abuse.

Finally, alternatives to detention already exist in many countries. In the USA, effective methods include social services and legal representation. Asylum-seekers are very likely to pursue their cases, even with no supervision.  With a better chance in court, people are more likely to show up for hearings. They need not be locked up beforehand.

Changes will be slow. The detention system is entrenched. To comply with Congressional budget directives, DHS must detain at least 34,000 people a day. Politicians must change this mandate to make detention reform possible.

The United Nations can play a role. It has already urged US compliance with PREA in detention centers. It can make more Americans aware of the abuses in detention centers and the alternatives to detention. Many voters know little about immigration detention, which happens in remote sites.  Alternatives to detention may be hard to imagine. The UN can help US advocates see how other countries have successfully used alternatives. With this knowledge, advocates can press for reforms to detention.

No immigration system should allow abuses in detention. Women fleeing violence must not suffer again. Asylum-seekers to the US must truly find refuge there.

*** Hold on…while this is a self inflicted wound at the hands of the Obama doctrine on immigration and while Jeh Johnson is his corrupt soldier…there is more they are hiding and with purpose.

STONEWALLED: Feds Hide Fiscal Details About Vast Operation To Resettle Illegal Alien Minors

Illegal aliens who show up at the border have been resettled all across United States of America instead of being detained and deported, as Donald Trump recently called for in his new immigration plan.

Breitbart: According to data from the Justice Department obtained by Breitbart News, 96 percent of Central Americans caught illegally crossing into the country last summer are still in the United States. Now Breitbart News has learned exclusively that a Freedom of Information Act (FOIA) request from a pro-security group about the cost of this operation is being stonewalled.

In January of 2015, the Immigration Reform Law Institute, on behalf of the Federation for American Immigration Reform (FAIR), filed a FOIA request to discover the cost of accommodating the tens of thousands of illegal unaccompanied minors who came across the border encouraged by President Obama’s 2012 executive amnesty for illegal youths.

The FOIA letter made five requests of the Immigration and Customs Enforcement (ICE) agency: that the federal agency detail (1) the costs of building of family detention centers; (2) the costs of apprehending, processing and detaining unaccompanied minors; (3) the costs transporting, transferring, removing and repatriating unaccompanied minors; (4) the costs related to ICE’s representation of government in removal procedures involving unaccompanied minors; and (5) the number of instances where objections to the return of unaccompanied minors were raised by the governments of Guatemala, Honduras and El Salvador.

The federal agency, however, refused to answer many of these questions– instead only partially answering two of the five requests. The agency provided only the costs of transporting, transferring and removing illegal minors, as well as the costs of the man-hours such tasks required. Those costs totaled $58.2 million—quadrupling ICE’s costs of $15.6 million in the year previous.

FAIR told Breitbart News that the agency did not provide clear documentation nor explanation as to how it arrived at this estimation.

FAIR asserts that, “The failure to provide most of the cost information related to the surge of [unaccompanied minors] indicates that the government has either failed to properly document those costs, or is refusing to reveal them.”

Because this FOIA request only inquired into the fiscal impact on the Immigration and Customs Enforcement (ICE) agency– it does not at all take into account the cost incurred by the Department of Health and Human Services (HHS) nor the public education system. Because most of the unaccompanied minors were turned over to HHS following their apprehension, FAIR notes that HHS’ costs “for providing shelter, food, education, health care and other services, likely vastly exceed additional costs incurred by ICE.”

The flood of minors has also placed fiscal strains on our public education system. FAIR notes that, “68,541 [unaccompanied minors] were apprehended entering the U.S. Virtually all of them have been allowed to remain in the U.S., at least temporarily.”

Because federal law dictates that all children are entitled to an education regardless of their immigration status, the fiscal burden of educating these students has fallen onto our public education system.

As FAIR notes, educating 68,541 illegal immigrant children at “an average annual cost of $12,401 per child enrolled in K-12 education, the annual cost to local schools is at least $850 million. However, since virtually all of the [unaccompanied minors] are non-English proficient, the actual costs are likely substantially greater.”

The increased costs and difficulties associated with educating illegal minors from poor and developing countries has been well-documented. As Fox News Latino reported in June of this year, the border surge has left many “schools struggling with influx of unaccompanied minors.” While the federal government’s policy of releasing illegal minors into American communities imposes burdens all across our nation’s education system, it will perhaps hurt minority American students most profoundly, by straining the educational resources needed in their communities.

For instance, New York’s Hempstead School District, which is a 96 percent black and Hispanic district, had about 6,700 students dispersed amongst its 10 schools and usually receives an average of a couple hundred new students every year. “However, last summer’s enrollment skyrocketed to about 1,500 new kids – most of them undocumented immigrants.” Fox News Latino writes, “The crush of new enrollees left the district scrambling, forcing it to dip into its emergency reserves to shell out more than $6 million to hire more English as a Second Language teachers and additional staff to alleviate overcrowded classrooms. Still, it has not been enough. The average classroom in the district now has about 40 to 50 children and [as one teacher explained is] posing a safety issue… ‘You have to understand,’ [one teacher said], ‘many of the children are not even proficient in their native language, Spanish, and now we have to teach them how to speak English. That can be very difficult.’”

Deporting instead of resettling illegal immigrants would save taxpayer dollars in two ways.

First, by deterring future border crossings, it would reduce the amount of illegal immigration in the future. As FAIR explains, refusing to implement immigration law has only encouraged more illegal immigrants to unlawfully enter the United States: “In July 2015, the Government Accountability Office confirmed that President Obama’s Deferred Action for Childhood Arrivals [DACA] program played a substantial role in triggering the surge of [unaccompanied minors] in 2014.”

Second, deporting rather than resettling illegal immigrants would save the costs of feeding, clothing, housing, educating, hospitalizing, and caring for illegal immigrants and their relatives. A previous study conducted by FAIR documented that illegal immigrants cost U.S. taxpayers about $113 billion every year. After FAIR explains that by comparison, “The estimated cost of deporting an illegal alien is $8,318. Using just the partial enumerated $58.2 million costs to ICE and the conservative $850 million estimate for education of [unaccompanied minors] resettled in the U.S., the amount of taxpayer money spent on dealing with unaccompanied minors would have paid for the removal of an additional 109,000 illegal aliens.”

Update on the Lawsuit Boehner’s House vs. Obama

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Primer links:

The vote by the House to hire a lawyer and sue Barack Obama

The lawsuit document against Barack Obama filed

A Question of Power: The Imperial Presidency by Turley

 

House lawsuit against Obama is turning into a real problem for the president

LATimes: An unprecedented House lawsuit against President Obama that was once derided as a certain loser looks stronger now and may soon deliver an early legal round to Republican lawmakers complaining of executive branch overreach.

A federal judge is expected to decide shortly whether to dismiss the suit, but thanks to an amended complaint and a recent Supreme Court ruling, the Republican-backed case has a much better chance of proceeding, attorneys agree.

At issue is whether the House may sue in court to defend its constitutionally granted “power of the purse” if the president spends money that was not appropriated by Congress.

The lawsuit alleges that Obama’s top aides quietly claimed the power to spend $178 billion over the next decade to reimburse health insurers for covering the cost of co-payments for low-income people who buy subsidized insurance under the Affordable Care Act.

The administration initially submitted a request for an annual appropriation — about $4 billion last year — but then changed course. Officials, including Health and Human Services Secretary Sylvia Mathews Burwell, decided the so-called cost-sharing payments to insurers were mandatory and were akin to an entitlement written into law, so there was no need to seek additional approval from Congress.

House Republicans disagree and say the administration’s spending is unconstitutional.

“The power of the purse is the very thumping heart of the legislative function in our system of separation of powers,” said Jonathan Turley, the George Washington University professor who was hired in November to lead the lawsuit.

Even if a federal judge allows the complaint to proceed, the lawsuit still faces a series of hurdles. And regardless of who wins, the future of Obama’s healthcare law does not appear to turn on the outcome. However, insurance premiums could rise sharply if the cost-sharing payments are cut off.

In May, U.S. District Judge Rosemary Collyer voiced exasperation when a Justice Department lawyer tried to explain why the Obama administration was entitled to spend the money without the approval of Congress. Why is that “not an insult to the Constitution?” Collyer asked.

But the more formidable barrier now facing the lawsuit is a procedural rule. Judges have repeatedly said lawmakers do not have standing to re-fight political battles in court.

In an oft-cited ruling, the Supreme Court in 1997 tossed out a lawsuit by six members of Congress who contended the newly passed Line Item Veto Act was unconstitutional. Justices said the lawmakers were not sufficiently harmed by the law to merit bringing a lawsuit.

But in late June, the high court gave the House lawsuit an apparent boost when it ruled the Arizona Legislature had standing to sue in federal court to defend its power to draw election districts. Although the Arizona lawmakers lost their case, Justice Ruth Bader Ginsburg said the Legislature could sue because it was an “institutional plaintiff asserting an institutional injury.”

That is exactly what House Republicans claim in their lawsuit. They say they are defending their institutional authority to appropriate money.

Ginsburg in a footnote said the court was not deciding “the question of whether Congress has standing to bring a suit against the president.” But administration supporters acknowledge the high court’s opinion in the Arizona case increases the odds the suit will survive.

When it was filed last summer, the lawsuit was largely dismissed as a feeble gesture unlikely to succeed. It originally accused the president of overstepping his power by delaying an implementation deadline spelled out in the Affordable Care Act.

That put Republicans in the awkward position of faulting the Obama administration for moving too slowly to enforce provisions of a healthcare law that they were simultaneously trying to repeal.

Turley helped focus the case on the appropriations dispute, and those who have followed it closely are not so confident it will go away soon.

The case “is certainly not a slam-dunk” for the administration, said Simon Lazarus, a lawyer for the liberal Constitutional Accountability Center. “Judge Collyer was annoyed with the government’s argument, so there is at least a possibility of Turley prevailing on the motion to dismiss.”

But Lazarus remains confident the administration will win in the end.

Washington attorney Walter Dellinger, a former Clinton administration lawyer, believes the courts will not finally rule on the House lawsuit. “There has never been a lawsuit by a president against Congress or by Congress against the president over how to interpret a statute,” he said.

If the courts open the door to such claims, lawmakers in the future will opt to sue whenever they lose a political battle, Dellinger said. “You’d see immediate litigation every time a law was passed,” he said.