Proud Boys attorneys: Informant had contact with defense team, defendants

Attorneys for five Proud Boys on trial on charges of seditious conspiracy said on Wednesday that the Justice Department had informed them that a witness one of them had been prepared to call as part of the defense this week has been a government informant since 2021.

“During this period of time, the [informant] has been in contact via telephone, text messaging and other electronic means, with one or more of the counsel for the defense and at least one defendant,” said Carmen Hernandez, an attorney for one of the five Proud Boys, Zachary Rehl, in a motion seeking more details of prosecutors’ use of informants in the case.

According to Hernandez, who filed the motion on behalf of all five defendants — including Enrique Tarrio, the Proud Boys’ former national chairman — the informant also attended “prayer meetings” with at least one of the defendants’ families and, at one point, discussed the composition of the defense team.

It’s the latest wrench in a trial that has stretched into its fourth month, the most significant to emerge from the Jan. 6, 2021, attack on the Capitol. Prosecutors have charged Tarrio, Rehl and three others — Ethan Nordean, Joe Biggs and Dominic Pezzola — with igniting the attack, methodically working to breach multiple police lines and ultimately entering the building itself to prevent Congress from certifying Joe Biden’s election as president.

U.S. District Court Judge Tim Kelly has asked for the government to respond to the defense’s filing by 9 a.m. Thursday.

Defense attorneys have repeatedly raised questions about the presence of informants within the Proud Boys and how they might have been deployed by the FBI to track the group ahead of Jan. 6. Jurors in the trial have been shown evidence that there were some informants — also called confidential human sources, or CHSs — within the group, both in text message chains and on the ground on Jan. 6.

The use of such sources is commonplace for the FBI, but there are risks when they remain involved in potential criminal activity alongside targets of an investigation.

In the three-page filing, Hernandez expressed frustration that the Justice Department had not shared more details with the defense team about the informants used in the investigation.

The information about the newly disclosed confidential source, she noted, came a day before one of the defendants was prepared to call this witness to the stand.

Prosecutors have bristled at claims of impropriety, noting that they have made nearly 10 confidential sources available to testify as part of the defense case who could discuss their contacts with the bureau. But the Justice Department is resisting efforts by the Proud Boys defense team to demand testimony from FBI agents who handled those informants and were in touch with them in the days and weeks leading to Jan. 6.

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Treasury guidance on electric vehicle tax credit due next week

The Biden administration will release the eagerly awaited proposed guidance for the domestic sourcing requirements for electric vehicles to qualify for the Inflation Reduction Act's clean energy incentives next week, a Treasury official said on Wednesday.

The IRA passed by Democrats last year included those incentives in the nearly $370 billion in climate change measures, but the legislation limited them to EVs made using domestically produced mineral and batteries, angering European nations that complained the rules violated trade agreements by denying them the full tax credit.

But those domestic content measures were critical to winning the support of centrist Democratic Sen. Joe Manchin (D-W.Va.), who made it a priority for the law to develop a U.S. EV supply chain and end the industry's dependence on Chinese suppliers.

Treasury Assistant Secretary for Tax Policy Lily Batchelder said the department will work with the private sector to ensure a "smooth transition" on which vehicles qualify for the incentives and for what amount.

"The adoption of clean vehicles is central to reducing emissions in transportation while protecting Americans from the kinds of spikes in gas prices that we saw at the outset of Putin's brutalization of Ukraine," Batchelder said. "However, we can't trade dependence on foreign oil for dependence on foreign batteries and our forthcoming guidance will strengthen our supply chain."

The Treasury Department released a white paper late last year signaling the U.S. could use expanded definitions for free trade agreements for imports of critical minerals during the tax credit rulemaking process.

Manchin has repeatedly expressed outrage over the delay in guidelines for the law’s EV tax credits and has accused the administration of trying to undermine congressional intent.

On Wednesday, Batchelder said China’s control over critical minerals processing globally underscores the need to strengthen U.S. supply chains “along with like-minded partners." She pointed to recent, initial talks between President Joe Biden and European Commission President Ursula von der Leyen.

Treasury’s actions “will advance economic security and stability by ensuring that the United States and allies and partners are not reliant on China for critical minerals in the decades to come,” she added.

The department did not provide any specific details on the proposed rule for EVs beyond that it will be released next week.

The Inflation Reduction Act included provisions aimed at lowering the cost for electric vehicles, while also increasing domestic manufacturing across clean energy technologies and components. Since the law's enactment, companies have announced tens of billions of dollars in EV and battery manufacturing facilities.

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Schumer supports Biden judicial pick who's battling Dem blowback

"I do support his nomination, I've looked over everything about him. I think he'd be an outstanding judge," Schumer said.

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Fed forges ahead with new rate hike, undeterred by bank failures

Federal Reserve officials on Wednesday announced another quarter-point increase in interest rates, shaking off concerns about the financial system's stability after the collapse of two regional banks.

The decision was one of the riskiest in years for the Fed, coming shortly after the stunning failure of Silicon Valley Bank and Signature Bank sparked a major government intervention.

In a statement following two days of meetings, the central bank's rate-setting committee said borrowing costs could still rise further but cautioned that the failure of the two banks will likely lead other lenders to pull back, cutting into economic growth. The implication: that might mean less work for the Fed in its fight against inflation.

Its goal is to slow spending and investment as a means to tamp down the worst price spikes in four decades.

"Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation," according to the statement. "The extent of these effects is uncertain."

Recent inflation data shows surging prices are cooling only slowly, but the string of bank failures has led to concern that rising interest rates could wreak further havoc on financial markets, increasing the odds of a sharp recession.

But some former Fed officials cautioned in the lead-up to the meeting that pausing the rate hike campaign could feed anxiety that more turmoil is ahead.

"The U.S. banking system is sound and resilient," the Fed said in its statement.

Meanwhile, Fed policymakers held their forecast steady of how much they expect to need to raise rates this year — to just above 5 percent, which would be achieved by just one further quarter-point increase.

But they also downgraded the size of rate cuts they project to deliver next year, adding further ammunition to their claim that even after they stop increasing borrowing costs, they plan to hold rates at punishing levels for a while.

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Oklahoma court OKs abortion to preserve mother’s life

OKLAHOMA CITY — A divided Oklahoma Supreme Court on Tuesday overturned a portion of the state’s near total ban on abortion, ruling women have a right to abortion when pregnancy risks their health, not just in a medical emergency.

It was a narrow win for abortion rights advocates since the U.S. Supreme Court struck down Roe v. Wade.

The court ruled that a woman has the right under the state Constitution to receive an abortion to preserve her life if her doctor determines that continuing the pregnancy would endanger it due to a condition she has or is likely to develop during the pregnancy. Previously, the right to an abortion could only take place in the case of medical emergency.

“Requiring one to wait until there is a medical emergency would further endanger the life of the pregnant woman and does not serve a compelling state interest,” the ruling states.

In the 5-4 ruling, the court said the state law uses both the words “preserve” and “save” the mother’s life as an exception to the abortion ban.

“The language ‘except to save the life of a pregnant woman in a medical emergency’ is much different from ‘preserve her life,’” according to the ruling.

“Absolute certainty,” by the physician that the mother’s life could be endangered, “is not required, however, mere possibility or speculation is insufficient” to determine that an abortion is needed to preserve the woman’s life, according to the ruling.

The court, however, declined to rule on whether the state Constitution grants the right to an abortion for other reasons.

The court ruled in the lawsuit filed by Planned Parenthood, Tulsa Women’s Reproductive Clinic and others challenging the state laws passed after the U.S. Supreme Court overturned the landmark Roe v. Wade decision that legalized abortion.

“People’s lives have been endangered by Oklahoma’s cruel abortion bans, and now doctors will be able to help pregnant people whose lives they believe are at risk,” Nancy Northup, President and CEO of the Center for Reproductive Rights, said in a statement after the ruling.

“We are disappointed that the Court declined to rule whether the state Constitution also protects the right to abortion outside of these circumstances,” Northrup said.

“This ruling leaves out too many Oklahomans. Oklahomans shouldn’t have to travel across state lines just to reach an abortion clinic, and it is heartbreaking that many will not be able to do so,” said Dr. Alan Braid, an abortion provider and plaintiff in the case said in a statement.

Emily Wales, president and CEO of Planned Parenthood of Great Plains called the ruling a small step toward restoring the right to abortion.

“The Oklahoma Supreme Court recognized one fundamental truth: patients must be permitted to access critical care to save their lives,” she said. “But the right recognized today is so limited that most people who need abortion will not be able to access it.”

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Is there a war on? Big European powers miss NATO spending targets again

Only 7 of 30 alliance members spent at least 2 percent of their GDP on defense in 2022.

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Karen Bass skips town as teacher strike disrupts Los Angeles

SACRAMENTO, Calif. — As tens of thousands of Los Angeles teachers and school workers prepared to walk off the job, Mayor Karen Bass was nearly 400 miles away at the state Capitol accepting an award.

Bass, the newly elected mayor of America’s second-largest city, has gone out of her way to avoid a public role in the bitter fight while insisting she has been actively involved behind-the-scenes to head off massive disruptions from a three-day strike that started Tuesday.

“I consider this of the utmost importance, and that is why I am personally engaged,” she said in an interview shortly after returning from Sacramento, where she received the award from the Legislature’s Women’s Caucus.

The mayor has no direct authority over the Los Angeles Unified School District. But the strike, which will force tens of thousands of parents to scramble for childcare and some kids to skip meals, is the first real test for Bass — a former member of Congress who beat a well-funded challenger to win in November and become the first Black woman to lead the city.

Bass has, so far at least, kept a low-profile despite her considerable influence in the city. That decision also stands in stark contrast to her two predecessors, who chose to get actively involved in education issues as mayor.

She is being pushed by some to be more vocal publicly, especially because of her deep ties to labor. A walkout by Local 99 of the Service Employees International Union, which represents cafeteria workers, custodians and other school staff, triggered a sympathy strike from teachers.

“If she were to get involved, it would be a game changer,” said Jackie Goldberg, president of the LAUSD school board. “With her personal relationship with SEIU and its leadership, I think she would be able to be very persuasive.”

But Bass said she’s not interested in making the labor dispute about her, and that getting too involved publicly could disrupt the process.

“I'm a person that stays focused on the goal, and I keep my eyes on the prize,” the mayor told POLITICO. “I have no need to grandstand.”

The strike, which is scheduled to run for three days and will keep more than 400,000 kids out of school, is a challenge for the city — and Bass, who until now has been focused on addressing homelessness and quality-of-life issues in Los Angeles.

There’s precedent for a higher-profile role: Her two predecessors as mayor, Eric Garcetti and Antonio Villaraigosa, were heavily and publicly active in LAUSD issues while in office.

The Los Angeles Democratic Party has publicly supported SEIU Local 99, and Congressman Adam Schiff, who is running for Senate, was picketing in the rain Tuesday alongside school workers.

Bass says that’s just not her style. A former community organizer, speaker of the state Assembly and member of Congress who was known for working across the aisle, she said she has intentionally stayed in the background — and that she offered to help broker a solution.

“When I said that I am constantly in communication, I meant exactly that,” she said. “I do not mean that somebody was in communication on my behalf.”

She said she’s made it clear to all sides that she doesn’t want to see a strike, but that the working conditions and salaries of classified employees — who on average make $25,000 per year — are unacceptable.

School workers declared their intention to strike last Wednesday, as talks with the district stalled after more than a year. The union, which says it wants raises of 30 percent to take the average annual salary to about $36,000, represents about 30,000 employees.

The district, led by Superintendent Alberto Carvalho, countered with 20 percent over several years plus a 3 percent bonus and improved health care benefits — and kept publicly hoping for a settlement up until Monday while Bass was in Sacramento.

United Teachers Los Angeles, which represents more than 35,000 educators, is separately seeking an increase in pay of 20 percent, has urged its members not to cross picket lines.

Max Arias, executive director for SEIU Local 99, said in a statement late Monday that a planned negotiation session with the district was called off after details about it were leaked in news reports. The union had previously said it was not interested in negotiating, as both sides complete a state-mandated mediation process with the Public Employment Relations Board.

The mayor has no statutory power over the autonomous school district but says she’s ready to mediate if it would help. Villaraigosa, who served before Garcetti, said Bass is limited by the fact that the two sides are apparently not ready to negotiate right now.

Both Villaraigosa and Garcetti garnered national headlines for their public engagement with LAUSD, a sprawling bureaucracy that includes a number of different cities and towns.

Garcetti and his team served as mediators between the district and UTLA in 2019, months after publicly offering up the idea. Villaraigosa went as far as to propose the city take over the district, an idea that eventually failed.

But former city officials say those situations are not direct parallels to the latest labor dispute.

“The parties have to want your help, and right now I don’t think they are close enough,” Villaraigosa said.

Once both sides are ready to hash out a deal, Bass is likely to be thrust into a more prominent position in negotiations. That’s a role longtime political observers say her decades in the state Legislature and Congress have primed her for.

“I think that collaborative, behind-the-scenes style can be very effective when it comes to bringing warring sides together,” said Ana Guerrero, who served as Garcetti’s chief of staff. “Because the mayor, if they're effective when it comes to these situations, they don't take a side, they don't wag their finger.”

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