That’s so Meta

From: POLITICO West Wing Playbook - Wednesday Mar 01,2023 11:21 pm
The power players, latest policy developments, and intriguing whispers percolating inside the West Wing.
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West Wing Playbook

By Eli Stokols and Lauren Egan

Welcome to POLITICO’s West Wing Playbook, your guide to the people and power centers in the Biden administration. With help from Allie Bice.  

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The first several months of the Biden presidency were heady times for Washington’s class of antitrust crusaders, who hailed the appointment of three prominent Big Tech skeptics. There was TIM WU leaving Columbia University for a job on the National Economic Council, LENA KHAN leading the Federal Trade Commission and, finally, JONATHAN KANTER heading up the Justice Department’s antitrust division.

So it’s been something of a shock to those who emblazoned “Wu & Khan & Kanter” on celebratory coffee mugs to find Biden’s West Wing suddenly looking hospitable to senior aides with Silicon Valley ties – to one tech giant in particular.

The administration’s new communications director, BEN LABOLT, was recently the personal spokesman for Facebook founder and CEO MARK ZUCKERBERG and his wife PRISCILLA CHAN. Chief of staff JEFF ZIENTS, who came on last month, served on the company’s board. They join LOUISA TERRELL, who’s been JOE BIDEN’s legislative affairs director for the duration of his presidency and was Facebook’s public policy director and a registered lobbyist for the company a decade ago.

Biden’s recent Wall Street Journal op-ed calling for bipartisan legislation “to hold Big Tech accountable” has reassured the antitrust class about the administration’s commitment on the issue, which the president also underlined in his State of the Union address last month.

But Facebook, now rebranded as Meta, clearly has interests before the government, and — now — more former allies to whom they can turn. In 2021 and the first nine months of 2022, only Amazon spent more money on registered federal lobbying (Meta spent $4.6 million on lobbying in the last quarter of 2022). And at a moment when the FTC is suing Facebook and the DOJ’s antitrust division is often out-gunned by industry lawyers, operatives pushing for stronger regulations worry the addition of high-level staffers potentially more sympathetic to the company could matter on the margins.

“I don't think anyone is going to tell Jonathan Kanter or Lena Khan to stand down. The momentum already underway will continue. But it’s still very concerning to have a troika of senior West Wing officials… who are not ardently skeptical of Big Tech,” said JEFF HAUSER, the founder and director of the Revolving Door Project. “This could have implications legislatively, with the budget and the Justice Department. Will they care how many people work at the FTC? Will they fight for the DOJ antitrust division to get the funding it needs?”

Hauser, who briefly worked as a lobbyist himself, pointed to the company’s intense lobbying of Commerce Secretary GINA RAIMONDO. “If you look at the international trade and tax issues Commerce and Treasury are dealing with, you see how many levers there are for people who are sympathetic to Facebook to tilt the world a little bit more in its direction,” he said.

Several congressional members involved in antitrust efforts declined to comment, but some privately expressed concerns about “an optics problem.” The White House dismissed the suggestion it might soften its antitrust stance, pointing to initiatives from Biden’s competition council that have reigned in tech in the absence of legislative action.

“Less than a month ago, President Biden stood in front of 28 million Americans and called on Congress to hold big tech accountable for ‘the experiment they are running on our children’,” White House spokesperson ROBYN PATTERSON told West Wing Playbook. “At last year’s State of the Union, he and the first lady led a standing ovation for Facebook whistleblower Frances Haugen. Anyone who doubts this president’s — and his team’s — commitment to reining in tech companies should crawl out from beneath the rock they’ve been living under.”

Bipartisan interest in regulating Big Tech is a relatively recent phenomenon, and Republicans and Democrats see some issues differently. But there have been constructive conversations around privacy issues, which could be the focus of a narrower bill in the current Congress, according to people familiar with those conversations.

To Facebook skeptics, Terrell’s job overseeing the administration’s legislative affairs shop is the most problematic, given her history lobbying for the company against restrictions and the abundance of Big Tech regulation percolating on the Hill. But some lawmakers behind those proposals — privately and publicly — have expressed more frustration toward Senate Majority Leader CHUCK SCHUMER, whose daughters work for Facebook and Amazon. They note that he did not bring antitrust measures to the floor last year, including during December’s lame duck session.

LaBolt was hardly alone among former Obama administration staffers who found work in Silicon Valley – or for its biggest companies in Washington. As Zuckerberg’s spokesman the last several years, LaBolt was repeatedly tasked with publicly defending him on personal matters, including lawsuits over his sprawling Hawaii estate and allegations of misconduct against a close associate.

Zients spent two years on Facebook’s board before resigning in May 2020, reportedly over a disagreement with Zuckerberg about the company policies around political discourse and misinformation. Wu, as strong an antitrust voice as there’s been in the administration, tweeted that making him chief of staff was “a great call.” Another former administration official who dismissed questions about the new chief of staff’s ties to the company pointed to how the White House aggressively confronted Facebook during Biden’s first months in office when Zients led the Covid-19 response.

“The worst relationship we had with Facebook was probably while Jeff was running the Covid team,” a former administration official said.

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POTUS PUZZLER

With help from the White House Historical Association

Which president ordered the construction of a conservatory on the west side of the White House grounds?

(Answer at the bottom.)

The Oval

CURTAIN CALL FOR KATE B: On her final day as White House communications director, KATE BEDINGFIELD was the subject of a profile by New York Magazine’s GABRIEL DEBENEDETTI. The piece illuminates the long-time Biden aide’s role in the president’s tight-knit inner circle: “She helps explain the obsessions of the voracious press to a president who still reads print newspapers and translates his concerns and wishes to much of the White House staff that hasn’t known him as long.”

The story features on-the-record praise from Biden advisers MIKE DONILON, JAKE SULLIVAN and RON KLAIN and credits Bedingfield for coining the term “Putin’s price hike” that Biden repeatedly used last year to redirect blame for record inflation. DeBenedetti lays out Bedingfield’s origin story with Biden from mid-2015 when she joined the then-vice president’s staff. The only detail he seemed to miss: the Charlotte Olympia kitten flats she sometimes rocked in the West Wing.

FIRST VETO INCOMING?: Biden could issue his first veto after two moderate Senate Democrats — JON TESTER (Mont.) and JOE MANCHIN (W.Va.) — voiced their support for a House Republican effort to roll back an environmental and social investing rule, our ELEANOR MUELLER and ALLISON PRANG report. The White House issued a veto threat in a statement Monday, saying the roll back would “unnecessarily limit the options available to retirement plan participants and investors.”

WHAT THE WHITE HOUSE WANTS YOU TO READ: That pharmaceutical company Eli Lilly “will cap the out-of-pocket cost of its insulin at $35 a month,” NBC News’ BERKELEY LOVELACE JR. reports. The move, experts say, could prompt other insulin makers in the U.S. to follow suit. The change, which Eli Lilly said takes effect immediately, puts the drugmaker in line with a provision in the Inflation Reduction Act, which in January imposed a $35 monthly cap on the out-of-pocket cost of insulin for seniors enrolled in Medicare.” White House officials took to Twitter to tout the news:

Tweet by Andrew Bates

Tweet by Andrew Bates | Twitter

AND ALSO, THIS: This take by Vox’s DYLAN MATTHEWS about how Biden should run for reelection: “The case for Biden running again is simple. Joe Biden has been a pretty good president. He stands a better chance of winning the presidency in 2024 than any other Democrat. Those points alone should suffice.”

WHAT THE WHITE HOUSE DOESN’T WANT YOU TO READ: This story by WSJ’s JON HILSENRATH and BRYAN MENA about how “demand for U.S. workers shows signs of slowing, a long-anticipated development that is showing up in private-sector job postings even while official government reports indicate the labor market keeps running hot.” The piece found that ZipRecruiter Inc. and Recruit Holdings Co., two large online recruiting companies, had data showing “the number of job postings is declining more than Labor Department reports of job openings.”

THE BUREAUCRATS

A WARM WELCOME: Biden formally introduced his new Labor secretary nominee, JULIE SU, to replace outgoing Secretary MARTY WALSH during a White House event Wednesday. The president said Su, the daughter of Chinese immigrants, represents the American dream. “She’s committed to making sure that dream is in the reach of every American,” he said. Noting Su’s warm reception, including multiple standing ovations, the president said, more than once: “I think they like you.” And he joked, “I’m gonna close my eyes and pretend you were clapping for me.” Our NICK NIEDZWIADEK has more details for Pro s.

WHERE’S HUNTER’S INVESTIGATOR?: Attorney General MERRICK GARLAND said in a hearing Wednesday that U.S. Attorney for Delaware DAVID WEISS “has full authority” in the investigation into the president’s son, HUNTER BIDEN. Weiss has been advised “he should get anything he needs… I have not heard anything from that office that suggests they are not able to do anything that the U.S. attorney wants them to do,” Garland said.

A NOTE FOR THE MOMS AND DADS: In a Newsweek opinion piece Wednesday, Education Secretary MIGUEL CARDONA detailed how the department is working to increase parental involvement in their kid's education. He said the department is “speaking with parents regularly to help them understand how their schools can utilize billions in new funding under the Bipartisan Safer Communities Act to expand mental health support for students and create safer school environments.” Parent partnerships, he said, are “not about giving in to the loudest voices or political grandstanding. It's about welcoming the voices of all families, and inviting parents to be a real part of decision-making processes in education.”

PERSONNEL MOVES: RACHEL LIPSON, director of The Project on Workforce at Harvard University, is heading to the Commerce Department to serve as a senior policy adviser in the CHIPS Program Office, according to an announcement from the project.

Filling the Ranks

NOT LEAVING LA LA LAND YET: Although the Senate Foreign Relations Committee has teed up a vote next week on former Los Angeles Mayor ERIC GARCETTI to serve as the U.S. ambassador to India, his confirmation by the full chamber remains in limbo, our MARIANNE LEVINE and CHRISTOPHER CADELAGO report. The Biden administration has ramped up its support for Garcetti in recent weeks, with the State Department “deeply engaged in talks with senators.”

Agenda Setting

IF AT FIRST YOU DON’T SUCCEED: Sen. MICHAEL BENNET (D-Colo.), a key congressional champion of the expanded child tax credit, called on Biden to be more assertive in a renewed effort to make the credit permanent. “I wish that the Biden administration had made this a bigger priority, because I think it was one of the most successful initiatives of his first term,” Bennet told PBS NewsHour anchor AMNA NAWAZ during a live conversation Wednesday at the Brookings Institution.

The think tank also published an analysis of the child tax credit’s impact over six months in 2021, when it was enacted, showing that poverty reductions were the highest in states with relatively lower cost of living and with a higher poverty baseline. Bennet praised Biden’s economic agenda broadly, acknowledging that Sen. Joe Manchin (D-W.Va.) was the main impediment to keeping the expanded child tax credit in place. He pushed the White House to keep fighting. “We do need presidential leadership on something like this,” Bennet said. “That is not a criticism, but an open invitation.”

 

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What We're Reading

Intel agencies: No sign adversaries behind ‘Havana syndrome’ (AP’s Nomaan Merchant)

Chief of a Democratic Super PAC Is Stepping Down (NYT’s Maggie Haberman)

Jill Biden went to Africa, and all anyone wants to talk about is 2024 (WaPo’s Jada Yuan)

The Oppo Book

Since it’s Kate Bedingfield’s last day, we thought it was only right to point out she considers herself a Swiftie.

Her plans upon leaving the administration even include a trip to Las Vegas, where she and her friends will see TAYLOR SWIFT perform live, as part of the “Eras Tour” that prompted the Ticketmaster scandal, Bedingfield told People Magazine in an interview published Wednesday.

"I am an enormous Swiftie,” she said. “I have no problem saying that.”

And we have no problem with it either.

POTUS PUZZLER ANSWER

President JAMES BUCHANAN ordered the construction of a conservatory to appease HARRIET LANE, his niece and surrogate first lady, as she liked using fresh floral arrangements to decorate the White House, according to the White House Historical Association.

A CALL OUT — Do you think you have a harder trivia question? Send us your best one about the presidents with a citation and we may feature it.

Edited by Eun Kyung Kim and Sam Stein.

 

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