Latest / Bloomberg Law / Trump's Aggressive Election Strategy
Transcript
- 0:02Speaker 1: This is Bloomberg Law with June Grosso from Bloomberg Radio.
- 0:07Speaker 2: They say the third time's a charm. Well, maybe this
- 0:12Speaker 2: latest appeal to the Supreme Court will be the final
- 0:15Speaker 2: word on the maps Missouri will use in the midterm.
- 0:19Speaker 2: The dispute over a new map drawn to help Republicans
- 0:22Speaker 2: gain a seat in the pivotal midterms has triggered confusion
- 0:26Speaker 2: and uncertainty for more than a million potential voters who
- 0:30Speaker 2: could be shuffled among districts. It comes amid crucial administrative deadlines.
- 0:35Speaker 2: Election officials in Missouri have already started mailing ballots to
- 0:39Speaker 2: military personnel and other voters outside the country. In two
- 0:43Speaker 2: separate rulings this month, the Supreme Court has told Missouri
- 0:47Speaker 2: it must use its old map, not the new gerrymandered
- 0:51Speaker 2: map drawn up by Republicans. But on Monday, a three-judge
- 0:55Speaker 2: panel of the Eighth Circuit Court of Appeals said the
- 0:58Speaker 2: Constitution requires that the state use the same voting map
- 1:02Speaker 2: in November that it used during the primary elections. And
- 1:07Speaker 2: now the case is back at the Supreme Court. Joining
- 1:10Speaker 2: me is Danielle Lang, Vice President for Voting Rights and
- 1:14Speaker 2: the Rule of Law at the Campaign Legal Center. Danielle,
- 1:18Speaker 2: Missouri's redistricting battle has been among the longest and most
- 1:22Speaker 2: complex in the roughly dozen states that have sought to
- 1:27Speaker 2: change their House districts over the past year. Explain why
- 1:31Speaker 2: it's back at the Supreme Court once again.
- 1:33Speaker 3: That's a great question. I think it's because some of
- 1:37Speaker 3: the plaintiffs in the Missouri case can't quite get the
- 1:40Speaker 3: hint from the Supreme Court. And that seems to be
- 1:43Speaker 3: the case, I think, for the Eighth Circuit as well.
- 1:46Speaker 3: So twice this has been before the Supreme Court already.
- 1:49Speaker 3: And the Supreme Court has said, no, we have to
- 1:51Speaker 3: follow what the Missouri Supreme Court has said about the
- 1:55Speaker 3: redistricting and what map needs to be used. But notwithstanding
- 2:00Speaker 3: those two prior orders from the Supreme Court, the Eighth
- 2:04Speaker 3: Circuit nonetheless ruled in favor of plaintiffs that are trying
- 2:08Speaker 3: to seek the use of a map that the Missouri
- 2:10Speaker 3: Supreme Court has said cannot be used. And under those circumstances,
- 2:14Speaker 3: we have to go back to the Supreme Court to
- 2:16Speaker 3: correct that error.
- 2:18Speaker 2: So the Supreme Court ordered Missouri to use its old
- 2:22Speaker 2: map in the upcoming midterm elections. However, during the primaries,
- 2:28Speaker 2: Missouri used the new map, which was drawn up to
- 2:31Speaker 2: give Republicans an advantage. So they're using a map with
- 2:35Speaker 2: different lines from that used when voters went to the
- 2:40Speaker 2: polls for the primaries, that does seem like it might
- 2:43Speaker 2: cause some problems. And the Eighth Circuit said it's unconstitutional.
- 2:48Speaker 3: Right. But I would just say in this context, I
- 2:51Speaker 3: think the Supreme Court has already been clear. You know,
- 2:53Speaker 3: these are not new facts. The issue was already brought
- 2:56Speaker 3: to the Supreme Court of whether or not the Missouri
- 3:00Speaker 3: Supreme Court's order could be evaded. And the answer was no.
- 3:04Speaker 3: And so under those circumstances, I wouldn't expect there to
- 3:07Speaker 3: be a change in the Supreme Court's position.
- 3:09Speaker 2: And also the ballots have been mailed already, right, to
- 3:12Speaker 2: overseas and military voters?
- 3:15Speaker 1: Exactly.
- 3:15Speaker 3: You know, it is far too late to change things.
- 3:18Speaker 3: The election is underway and the Supreme Court has already
- 3:21Speaker 3: spoken twice.
- 3:23Speaker 2: Let's turn now to some of the problems that seem
- 3:26Speaker 2: to be arising ahead of the election. as President Trump
- 3:32Speaker 2: is trying to assert greater federal control over the elections,
- 3:37Speaker 2: and the Justice Department is employing an aggressive strategy that
- 3:40Speaker 2: includes suing states for voter records, investigating election officials, and
- 3:46Speaker 2: even seizing ballots in some states. And this is setting
- 3:50Speaker 2: off alarm bells as to what might happen on Election Day.
- 3:55Speaker 2: And the NAACP is suing over what it says is
- 3:59Speaker 2: a Trump administration plan to station armed federal agents near
- 4:04Speaker 2: voting locations. The federal government has sent monitors to election
- 4:08Speaker 2: sites before. Tell us what normally happens.
- 4:12Speaker 3: Yes, there's been a longstanding federal observer policy and program
- 4:17Speaker 3: from the Department of Justice as well as congressional observers.
- 4:21Speaker 3: But that's all they are. They are observers. They cannot interfere.
- 4:25Speaker 3: They cannot even enter polling places unless they're invited. They
- 4:30Speaker 3: have to stand outside. And so it is not the
- 4:33Speaker 3: case that observers can interfere with our elections in any way.
- 4:38Speaker 3: So that's a longstanding practice. And of course, I would
- 4:42Speaker 3: expect there to be observers at the polls this year,
- 4:45Speaker 3: the same way that they have always been. Of course,
- 4:48Speaker 3: there have been concerning and fear-mongering statements from members of
- 4:52Speaker 3: the administration saying, suggesting perhaps more nefarious motives at the
- 4:57Speaker 3: polls by federal officials. But their federal law is actually
- 5:01Speaker 3: very clear. There's a statute that says that you cannot
- 5:05Speaker 3: send federal armed officials to the polls. Point blank. That
- 5:11Speaker 3: is the law. There are no ifs, ands, or buts
- 5:14Speaker 3: to that law. And so there is no reason for
- 5:19Speaker 3: there to be federal armed officials at the polls.
- 5:23Speaker 2: Have the Justice Department or FBI officials hinted that they
- 5:26Speaker 2: might be armed?
- 5:28Speaker 3: Well, I mean, I think that that is the image
- 5:30Speaker 3: that is evoked by FBI officers, ICE and the like,
- 5:34Speaker 3: is that those are typically law enforcement that are armed officials.
- 5:38Speaker 3: But the point is that there is no kind of
- 5:40Speaker 3: military or law enforcement, federal law enforcement permitted at the polls.
- 5:44Speaker 3: In fact, many states don't even allow state law enforcement
- 5:48Speaker 3: to be at the polls, except for under very limited circumstances. Because,
- 5:53Speaker 3: of course, voters should feel at ease at the polls.
- 5:56Speaker 3: And there are some communities that feel very ill at
- 5:59Speaker 3: ease when law enforcement is present.
- 6:02Speaker 2: So the NAACP is one of the groups that's suing
- 6:05Speaker 2: over this plan to place armed federal agents at the polls. So,
- 6:09Speaker 2: I mean, what can they hope to get before an
- 6:11Speaker 2: election that would stop that from happening?
- 6:15Speaker 3: Yeah, I think that groups like the NAACP are putting
- 6:18Speaker 3: down a marker to make it very clear in the
- 6:21Speaker 3: litigation that the law stands, that the law is clear,
- 6:26Speaker 3: and that federal law enforcement will not be tolerated at
- 6:30Speaker 3: the polls, and that the civic engagement community, the civil
- 6:34Speaker 3: rights community has voters back. And so... We'll see how
- 6:39Speaker 3: that litigation plays out and whether or not there will
- 6:42Speaker 3: be any kind of preliminary relief sought there. But one
- 6:45Speaker 3: way or another, it lays down a very clear marker.
- 6:47Speaker 3: This is the law and we will not tolerate it
- 6:50Speaker 3: to be violated.
- 6:52Speaker 2: I'm also wondering, so if despite this, armed agents end
- 6:56Speaker 2: up at the polls, what happens at the polls? Because
- 6:59Speaker 2: at that point you have disruption. I'm sure you have
- 7:02Speaker 2: some voters who are intimidated already. What happens if the
- 7:06Speaker 2: state runs to court or the county runs to court
- 7:09Speaker 2: and tries to get an order? Yeah.
- 7:11Speaker 3: First, I just want to assure listeners that we don't
- 7:14Speaker 3: have any reason to believe that there's going to be
- 7:17Speaker 3: kind of swarms of law enforcement at the polls. I
- 7:20Speaker 3: expect 2026 elections to go the way that voters normally
- 7:25Speaker 3: experience their elections, that they go to the polls, they
- 7:28Speaker 3: meet their friendly election officials, they get their sticker and
- 7:32Speaker 3: And they go along their merry way. But, you know,
- 7:37Speaker 3: as this lawsuit kind of demonstrates, civic engagement communities are
- 7:41Speaker 3: prepared for every eventuality and to protect voters. So what
- 7:45Speaker 3: does that look like? Okay, so if law enforcement appears
- 7:50Speaker 3: improperly at the polls, voters are going to have community
- 7:54Speaker 3: members there with them. They can just go ahead and vote. right?
- 7:58Speaker 3: They're going to move forward with their day. They're going
- 8:00Speaker 3: to lawfully cast their ballot and move on. And in
- 8:04Speaker 3: the meanwhile, there will be very prompt legal action. And
- 8:08Speaker 3: I would imagine that any such attempts at deployments would
- 8:12Speaker 3: be very quickly cut off.
- 8:14Speaker 2: I mentioned the head of the Civil Rights Division before,
- 8:18Speaker 2: Harmeet Dhillon. Historically, the Justice Department has has focused on
- 8:24Speaker 2: addressing racial discrimination, language and disability access at polls, and
- 8:30Speaker 2: other barriers to voting. Under President Trump, that's changed. And
- 8:35Speaker 2: now you have the department suing more than two dozen
- 8:38Speaker 2: states for their voter rolls. Explain why they want those rolls.
- 8:44Speaker 3: Yeah, the Department of Justice has been on a mission
- 8:48Speaker 3: to try to hoover up all of Americans' voter data
- 8:52Speaker 3: across the entire country, including social security numbers, driver's license numbers,
- 8:58Speaker 3: voter history. There's just no reason for the Department of
- 9:01Speaker 3: Justice to do that. There is no lawful basis for
- 9:04Speaker 3: the Department of Justice to do that. And it raises
- 9:06Speaker 3: both concerns about their motives as well as the privacy
- 9:09Speaker 3: of that data for American voters. And the good news
- 9:13Speaker 3: is that they have been unsuccessful. Red and blue states
- 9:16Speaker 3: alike have pushed back and they have been unanimous in
- 9:20Speaker 3: their victories thus far in the courts and kind of
- 9:23Speaker 3: pushing back on those attempts to hoover up American voter data.
- 9:27Speaker 2: Does this search for state voter rolls have anything to
- 9:32Speaker 2: do with the case before the Supreme Court where we're
- 9:34Speaker 2: waiting for the court to make a decision about the
- 9:37Speaker 2: Trump administration's use of the SAVE database?
- 9:42Speaker 3: Yes and no, I would say. Technically, no. And the
- 9:45Speaker 3: Department of Justice has at times suggested that they are unrelated.
- 9:50Speaker 3: But at the same time, we actually do know from
- 9:54Speaker 3: reporting that the Department of Justice did appear to be
- 9:58Speaker 3: sharing that data with... with Department of Homeland Security and
- 10:02Speaker 3: using this so-called SAVE database to try to match voters
- 10:07Speaker 3: to other federal data. And what the district court and
- 10:12Speaker 3: the D.C. Circuit found in that case is that that
- 10:15Speaker 3: entire process was unlawful. It violated the Privacy Act, and
- 10:20Speaker 3: it had all sorts of both security and accuracy concerns.
- 10:24Speaker 2: Coming up next on the Bloomberg Law Show, we'll talk
- 10:27Speaker 2: about how state election officials and county officials are trying
- 10:31Speaker 2: to game out what might happen, the worst-case scenarios during
- 10:35Speaker 2: the midterm elections. I'm June Grosso, and you're listening to Bloomberg.
- 10:42Speaker 2: While the Constitution largely puts states in charge of elections,
- 10:46Speaker 2: President Trump has sought to reach into virtually every corner
- 10:50Speaker 2: of the voting process as he boosts baseless accusations of
- 10:55Speaker 2: widespread fraud. And he's empowered agencies like the Justice Department
- 11:00Speaker 2: to pursue extraordinary legal tactics to assert greater federal control
- 11:05Speaker 2: over U.S. elections. I've been talking to Danielle Lange. Vice
- 11:09Speaker 2: President for Voting Rights and the Rule of Law at
- 11:11Speaker 2: the Campaign Legal Center. Harmeet Dhillon, who's the head of
- 11:15Speaker 2: the Civil Rights Division at the Justice Department, warned of
- 11:19Speaker 2: criminal investigations of state and local election officials for failing
- 11:24Speaker 2: to clean up voter rolls. Sending letters to top election
- 11:28Speaker 2: officials nationwide. I mean, is there a reason for her warning?
- 11:33Speaker 3: This is intimidation and nothing more. If you'll remember back
- 11:38Speaker 3: at the beginning of the year when there was that
- 11:40Speaker 3: huge ice surge in Minneapolis, the Department of Justice was
- 11:45Speaker 3: trying to kind of trade on, oh, perhaps we will
- 11:49Speaker 3: pull back on our ice surge if you will give
- 11:51Speaker 3: us this data or information that we want about voters,
- 11:55Speaker 3: which just shows the kind of length of intimidation that
- 11:59Speaker 3: and kind of thuggery that the Department of Justice has
- 12:02Speaker 3: been willing to engage in when it comes to their
- 12:05Speaker 3: mission to undermine our elections. So I see those letters
- 12:09Speaker 3: of kind of trying to threaten election officials into doing
- 12:12Speaker 3: their bidding as just another element in that scheme. Election
- 12:17Speaker 3: officials have regular list maintenance processes that they go through
- 12:21Speaker 3: year round. They are constantly cleaning their rolls to make
- 12:26Speaker 3: sure that people who've passed away or moved are removed
- 12:29Speaker 3: and that everybody who's newly registered gets registered. That's their
- 12:33Speaker 3: job and they know how to do it well. I
- 12:35Speaker 3: will say the one time that they're not doing it,
- 12:38Speaker 3: they're not doing kind of removal list maintenance is right now.
- 12:42Speaker 3: In the 90 days before a federal election, it's actually
- 12:45Speaker 3: illegal to engage in systematic list maintenance. So election officials
- 12:49Speaker 3: have already gone through all those processes in a timely
- 12:52Speaker 3: manner so that they could pause them in the run-up
- 12:55Speaker 3: to the election so that nobody gets improperly removed without
- 12:59Speaker 3: the ability to kind of fix it before the election.
- 13:02Speaker 2: Every investigation, et cetera, has shown that the incidence of
- 13:07Speaker 2: non-citizens voting is very, very low. But we had that
- 13:12Speaker 2: disclosure in New Jersey of the state software error that
- 13:16Speaker 2: registered several thousand non-citizens in 2023 and 2024, including several
- 13:23Speaker 2: hundred who ended up voting. And I wonder how much
- 13:27Speaker 2: that is giving credence to Trump's continuing claims of fraud
- 13:34Speaker 2: and non-citizens voting.
- 13:36Speaker 3: Listen, the administration has been on a consistent message, unsupported
- 13:41Speaker 3: by the facts or the evidence for a long time,
- 13:44Speaker 3: while predating this particular data point about New Jersey, telling
- 13:49Speaker 3: Americans lies about the integrity of our elections. And so
- 13:54Speaker 3: I think that you would tell those lies under any circumstances.
- 13:57Speaker 3: It is a mission of the administration to undermine our elections.
- 14:03Speaker 3: What happened in New Jersey was actually an example of
- 14:06Speaker 3: where there are errors, how the system should work. They
- 14:09Speaker 3: found the errors. They fixed them. They resolved it. And
- 14:13Speaker 3: it's important to note here that that was a data issue.
- 14:17Speaker 3: It was not a question of voters trying to engage
- 14:21Speaker 3: in subterfuge. These were individuals who had actually disclosed their
- 14:25Speaker 3: citizenship status when they got their driver's license. And the
- 14:29Speaker 3: agency made an error a data error. So nothing in
- 14:33Speaker 3: a kind of new restrictions on voting or the like
- 14:37Speaker 3: would have prevented that. It was a human data error.
- 14:42Speaker 3: And we caught it and we fixed it. And that's
- 14:45Speaker 3: exactly what should happen.
- 14:46Speaker 2: California's AG Rob Bonta told Bloomberg recently that Democratic state
- 14:52Speaker 2: officials are gaming out worst case scenarios for November, including
- 14:57Speaker 2: if federal agents show up to seize ballots. What happens
- 15:03Speaker 2: if federal agents come to try to seize ballots?
- 15:07Speaker 1: Here's what I'll say.
- 15:09Speaker 3: I think our elections are going to run really well
- 15:10Speaker 3: in 2026. The federal government doesn't have power over running
- 15:15Speaker 3: our elections. Their elections are run by thousands of individual
- 15:20Speaker 3: jurisdictions with their own power over the elections and election materials.
- 15:25Speaker 3: I also think it's right for state officials to be
- 15:28Speaker 3: gaming out worst case scenarios because, of course, this administration
- 15:33Speaker 3: has engaged in a lot of really dangerous threats. It
- 15:36Speaker 3: has engaged in unprecedented activities like going to seize the
- 15:40Speaker 3: ballot materials in Fulton County, Georgia. And what I would
- 15:44Speaker 3: expect is that state officials will be very well prepared
- 15:48Speaker 3: to push back on those, to immediately seek return of
- 15:52Speaker 3: those materials, to make sure that we have backup data
- 15:55Speaker 3: where possible to verify our election results. And so I
- 16:00Speaker 3: am gratified, although I very much hope it's unnecessary, that
- 16:05Speaker 3: state officials will have plans for every scenario.
- 16:10Speaker 2: And so now as far as there have been all the,
- 16:12Speaker 2: you know, the legal battles over mail-in ballots and the
- 16:15Speaker 2: post office trying to impose rules on the states submitting ballots,
- 16:21Speaker 2: has that all been settled? Is that all over? Yes.
- 16:26Speaker 3: The USPS rule is not going to be in place
- 16:31Speaker 3: in any way, shape, or form for the 2026 election.
- 16:36Speaker 3: It has been enjoined by Congress. two separate district courts,
- 16:40Speaker 3: the First Circuit and the Supreme Court, has said we
- 16:43Speaker 3: are not going to disrupt that injunction.
- 16:46Speaker 2: As far as going back to the Missouri map and
- 16:49Speaker 2: the congressional map situations, all this confusion over the maps
- 16:53Speaker 2: and this last-minute jockeying is because President Trump made that request,
- 16:58Speaker 2: starting with Texas, to redistrict. Besides Missouri, are there any
- 17:04Speaker 2: other states' maps that are still in question?
- 17:08Speaker 3: No, there should not be. Elections are underway. You know,
- 17:11Speaker 3: I mean, for the reasons we talked about at the
- 17:12Speaker 3: top of our discussion, Missouri also shouldn't be a question
- 17:16Speaker 3: except for the kind of unreasonable behavior, I think, of
- 17:19Speaker 3: the plaintiffs in that case. And I very much hope
- 17:22Speaker 3: that that's going to be put to an end, hopefully today,
- 17:27Speaker 3: if not later this week by the Supreme Court. And
- 17:31Speaker 3: so voters have really been put through the ringer this
- 17:34Speaker 3: year with this redistricting war. It's something that voters should
- 17:38Speaker 3: not have had to face. It is absurd for there
- 17:44Speaker 3: to be this race to the bottom when it comes
- 17:46Speaker 3: to redistricting when there doesn't need to be any redistricting
- 17:50Speaker 3: being done mid-cycle. Normally, we only redistrict every 10 years
- 17:55Speaker 3: with new census results. This is unprecedented. But I think
- 17:59Speaker 3: that we are at the end and it's time for
- 18:02Speaker 3: voters to actually have their voices heard.
- 18:04Speaker 2: Is the whole point of a lot of this just
- 18:07Speaker 2: intimidation and to try to stop people from coming to
- 18:11Speaker 2: the polls?
- 18:12Speaker 3: I think that is part of the purpose, but I
- 18:14Speaker 3: don't think it will work. I think there is this
- 18:16Speaker 3: idea that we can kind of demoralize voters. We can
- 18:21Speaker 3: scare voters. We can confuse voters. And so that will
- 18:26Speaker 3: change the outcomes of an election. But I actually think
- 18:29Speaker 3: American voters are a lot more resilient than that. They
- 18:32Speaker 3: can kind of see through things. all of this morass
- 18:36Speaker 3: and see that what's really happening is that there's a
- 18:38Speaker 3: lot of attention being paid to the rules of voting
- 18:41Speaker 3: trying to undermine their vote because their vote is powerful.
- 18:44Speaker 3: I am pretty confident that voters are going to be
- 18:48Speaker 3: steadfast in making sure that their voices are heard.
- 18:51Speaker 2: There's always, I don't know, is it always or often
- 18:54Speaker 2: litigation after the elections over results?
- 18:59Speaker 3: I suppose I would say often, but it's close to
- 19:01Speaker 3: always if you think about a national election, there's always
- 19:04Speaker 3: going to be some elections that are very close and
- 19:06Speaker 3: therefore lead to some post-election litigation.
- 19:09Speaker 2: Are you guys anticipating that there'll be even more this midterm?
- 19:14Speaker 3: I think it's really hard to say. You know, a
- 19:17Speaker 3: lot of this will often depend on how close the
- 19:19Speaker 3: races are. When elections aren't that close, it doesn't really
- 19:24Speaker 3: leave a lot of options for candidates to try to
- 19:27Speaker 3: undermine the results. where they are closer or where candidates
- 19:34Speaker 3: are unwilling to concede to the voice of the American people.
- 19:39Speaker 3: They will sometimes try to use the courts as a
- 19:41Speaker 3: way to change the results. But I've been through a
- 19:45Speaker 3: few cycles of that now, and it doesn't succeed.
- 19:48Speaker 2: The Justice Department is still re-litigating or investigating the 2020 election.
- 19:54Speaker 2: I mean, they actually seized ballots in Georgia, right?
- 19:58Speaker 3: They did seize ballot materials in Georgia related to the
- 20:01Speaker 3: 2020 election. That's correct.
- 20:03Speaker 2: I mean, it's been litigated so many times, I can't imagine.
- 20:06Speaker 3: So many times over. I can tell you that you
- 20:09Speaker 3: and most Americans would prefer to not hear anything more
- 20:13Speaker 3: about another investigation into an election that occurred six years ago.
- 20:17Speaker 2: Oh, I'm wondering, I've been reading about concerns for the
- 20:22Speaker 2: safety of election officials and election workers because in recent years,
- 20:28Speaker 2: they've been subjected to more threats of harassment and violence
- 20:32Speaker 2: than And that some election offices have done security upgrades
- 20:39Speaker 2: because of these threats.
- 20:41Speaker 3: I mean, let me start by saying that I think
- 20:43Speaker 3: that listeners, if there's one thing they can do to
- 20:45Speaker 3: help support our elections, be kind to your election officials.
- 20:49Speaker 3: Say thank you. They are doing hard work and it
- 20:52Speaker 3: is a real civic duty and it's a labor of
- 20:55Speaker 3: love for election officers. officials. They serve our democracy at
- 20:59Speaker 3: the front lines. And they have been subject to really
- 21:02Speaker 3: outrageous harassment and intimidation because of the lies that have
- 21:07Speaker 3: been told to the American people.
- 21:09Speaker 2: About our elections.
- 21:10Speaker 3: And I find that really heartbreaking. That being said, I
- 21:14Speaker 3: do think that state-level officials have worked hard to make
- 21:18Speaker 3: sure that election officials have the support that they need.
- 21:21Speaker 3: And we're continuing to try to provide election officials with
- 21:25Speaker 3: the support that they need. Some states have specific laws
- 21:29Speaker 3: protecting against intimidation. And that's a place where we need
- 21:33Speaker 3: to continue to pump resources. If we care about our democracy,
- 21:36Speaker 3: we need to continue to pump resources into its clean administration,
- 21:40Speaker 3: make sure that officials have everything they need to do
- 21:43Speaker 3: their job safely.
- 21:44Speaker 2: And do you have any advice for voters in general?
- 21:48Speaker 3: It's a busy time, and I think it can be
- 21:50Speaker 3: really dizzying. I think the one thing I would say
- 21:52Speaker 3: is that listeners are going to see a lot in
- 21:55Speaker 3: the news about voting rules and challenges in the news,
- 21:59Speaker 3: and it will be hard to follow it all. But
- 22:01Speaker 3: I think you can have faith that at the end
- 22:03Speaker 3: of the day, what's going to happen this November is
- 22:06Speaker 3: we're going to have an election day. We're going to
- 22:08Speaker 3: cast our ballot. Those ballots are going to get counted.
- 22:11Speaker 3: And then we're going to have results. And those results
- 22:13Speaker 3: are going to lead to new elected officials throughout the country.
- 22:18Speaker 3: And so there's going to be a lot of dizzying
- 22:21Speaker 3: fights in the short term. But voters just have to
- 22:24Speaker 3: have the eye on their prize, which is to just
- 22:27Speaker 3: make sure that they know what they need to do
- 22:30Speaker 3: to make a plan to vote.
- 22:31Speaker 2: Thanks so much for joining me today, Danielle. That's Danielle Lange.
- 22:35Speaker 2: Vice President for Voting Rights and the Rule of Law
- 22:37Speaker 2: at the Campaign Legal Center. Coming up next on the
- 22:40Speaker 2: Bloomberg Law Show. San Francisco is suing Trump's social media platform,
- 22:46Speaker 2: Truth Social, for offering customers who pay $ 100, 000 a month
- 22:52Speaker 2: priority access to the president's and other high-level officials' posts
- 22:57Speaker 2: before they're available to the public. I'm June Grosso, and
- 23:00Speaker 2: you're listening to Bloomberg. San Francisco's city attorney is urging
- 23:08Speaker 2: a state court to block Trump's social media platform, Truth Social,
- 23:13Speaker 2: from offering customers who pay $ 100, 000 a month priority access
- 23:19Speaker 2: to the president's and other high-level officials' posts before they're
- 23:23Speaker 2: available to other users. In the lawsuit filed in San
- 23:27Speaker 2: Francisco's Superior Court, The city attorney says that Trump Media
- 23:31Speaker 2: and Technology Group is aiding and abetting Trump's violations of
- 23:36Speaker 2: federal ethics and anti-corruption law and violating other federal laws
- 23:41Speaker 2: that protect against insider trading. Quote, it's a pay to
- 23:45Speaker 2: play scheme for early access to the president's market moving
- 23:49Speaker 2: government decisions. This public scheme has turned public trust into
- 23:53Speaker 2: private profit. This is corruption, plain and simple. Trump media
- 23:59Speaker 2: said the lawsuit fails to grasp the basic distinction between
- 24:03Speaker 2: public and non-public information. Joining me is Bloomberg Law's senior correspondent,
- 24:08Speaker 2: Alex Ebert. Alex, tell us more about this, shall we
- 24:12Speaker 2: call it a service?
- 24:12Speaker 1: So Trump media and through their company, Truth Social, they've
- 24:17Speaker 1: created a paid subscription program that allows early access to
- 24:23Speaker 1: Trump and other senior officials' posts on Truth Social. It's
- 24:27Speaker 1: called Truth API. And for $ 100, 000 a month, you get
- 24:31Speaker 1: some early access to some pretty critical information if you
- 24:35Speaker 1: were a trader. Think about announcements about tariffs, or maybe
- 24:40Speaker 1: if there's a merger happening that the government is allowing,
- 24:43Speaker 1: or perhaps if the government leaked the Bureau of Labor
- 24:46Speaker 1: Statistics a little bit early. These kind of things might
- 24:49Speaker 1: pop up on Truth Social, and these people would have
- 24:52Speaker 1: first dibs at getting to see them.
- 24:54Speaker 2: Is this already ongoing? Have people subscribed?
- 24:57Speaker 1: This is ongoing. People have subscribed. There's been an investor
- 25:01Speaker 1: call about it. And the early sort of pronouncements on
- 25:05Speaker 1: it are that we've seen investors interested in it. We've
- 25:08Speaker 1: seen crypto firms interested in it. And these are folks
- 25:11Speaker 1: that really can take advantage of lightning quick actions on
- 25:16Speaker 1: information to make bets in.
- 25:19Speaker 3: The stock market.
- 25:19Speaker 2: $ 100, 000 a month. I mean, to me, that's high, but
- 25:22Speaker 2: is that high for a service like this?
- 25:25Speaker 1: Well, I'm not aware of what the market price is
- 25:27Speaker 1: for a service like this, but let's consider we work
- 25:30Speaker 1: for Bloomberg, right? It is definitely more than you'd pay
- 25:33Speaker 1: for a terminal subscription. And the difference there between buying
- 25:38Speaker 1: a terminal subscription or purchasing a true social API framework
- 25:42Speaker 1: is that This is public information from public officials that
- 25:45Speaker 1: they got from their public offices. And so you see
- 25:49Speaker 1: lawsuits challenging this idea of potential trading on the information
- 25:53Speaker 1: that you get from being in office.
- 25:55Speaker 2: The San Francisco city attorney is suing. Why are they
- 25:59Speaker 2: suing in particular?
- 26:00Speaker 1: Yeah, they're suing because they're saying this is about the
- 26:03Speaker 1: haves and have nots. You're going to have a lot
- 26:05Speaker 1: of investors in the world that can't afford $ 100, 000 a
- 26:08Speaker 1: month to get at this information. And they're saying some
- 26:12Speaker 1: pension funds can't get at it. People with their 401ks,
- 26:16Speaker 1: they're not going to have the same access to this
- 26:19Speaker 1: quick information from Trump and other members of his cabinet
- 26:23Speaker 1: that would allow them to trade as quickly and efficiently
- 26:26Speaker 1: as the people that are paying into Truth API. They're
- 26:29Speaker 1: saying that this creates violations of California's unfair competition law.
- 26:36Speaker 2: It certainly seems unethical. But Trump has made billions of
- 26:40Speaker 2: dollars during his presidency doing things that other presidents would
- 26:45Speaker 2: never have done. I mean, most other presidents don't do
- 26:48Speaker 2: any business dealings during their presidency.
- 26:51Speaker 1: Well, I'm not here to comment on the ethics of it,
- 26:54Speaker 1: but it's definitely unprecedented.
- 26:55Speaker 2: Right.
- 26:56Speaker 1: And in the lawsuit, you see San Francisco trying to
- 27:00Speaker 1: do an interesting bank shot here. They're trying to say
- 27:04Speaker 1: that this program violates federal laws, right? Securities violations or
- 27:10Speaker 1: insider trading violations. And because of that, you can sue
- 27:15Speaker 1: claiming that this is an unfair business practice in California.
- 27:19Speaker 1: That is different from the litigation that we're seeing out
- 27:23Speaker 1: of the D.C. District Court. There you have a couple
- 27:26Speaker 1: of nonprofits suing, saying these are constitutional violations. We're talking
- 27:30Speaker 1: about people trading on their office and it's violating First Amendment,
- 27:34Speaker 1: Fifth Amendment and the Administrative Procedures Act rights of U.S. citizens.
- 27:40Speaker 2: So what are the plaintiffs looking for in these lawsuits?
- 27:43Speaker 1: Well, the two different lawsuits, I believe, are looking for
- 27:45Speaker 1: the exact same thing, which is to shut this down.
- 27:48Speaker 1: The question is going to be, you know, in California,
- 27:51Speaker 1: can you get some sort of injunction there that covers
- 27:53Speaker 1: the state and does that matter? You know, can you
- 27:56Speaker 1: get it to cover the entire country? And the same
- 27:58Speaker 1: in D.C. For the folks in D.C., their claim is, listen,
- 28:02Speaker 1: we have a First Amendment right to listen. This is
- 28:04Speaker 1: public information. You can't trade on it for ethics reasons.
- 28:08Speaker 1: But for constitutional reasons, you cannot do this because when
- 28:13Speaker 1: that information becomes public, it is in the public sphere.
- 28:18Speaker 1: This is a public forum. You need to give this
- 28:20Speaker 1: up to the public. So we need to stop the
- 28:22Speaker 1: president's company from doing so.
- 28:24Speaker 2: Trump media said in a statement that the lawsuit fails
- 28:27Speaker 2: to grasp the basic distinction between public and non-public information
- 28:33Speaker 2: and also accused the city's attorneys of being left wing activists.
- 28:37Speaker 2: What is the Trump administration's position?
- 28:40Speaker 1: The Trump administration's position is that they can do that.
- 28:43Speaker 1: I think it'll be really interesting to watch this litigation
- 28:46Speaker 1: moving forward for a couple of reasons, if we can
- 28:49Speaker 1: just roll the clock. I think the first will be standing, right?
- 28:53Speaker 1: Especially in the city's case, it'll be interesting to see
- 28:56Speaker 1: if the court there finds issues with that. I think
- 28:59Speaker 1: it'll be fascinating to watch if the underlying claims here
- 29:03Speaker 1: get a really hard look too, because... You know, we
- 29:06Speaker 1: are talking about something that's a little bit more amorphous
- 29:08Speaker 1: there and kind of a bank shot relying on federal laws.
- 29:11Speaker 1: You've seen under this unfair competition law, insider trading type
- 29:15Speaker 1: suits brought against some defendants, including big investment firms. But
- 29:22Speaker 1: they're rare, right? And do those cases brought against folks
- 29:26Speaker 1: like Morgan Stanley and Coinbase sort of play in the
- 29:29Speaker 1: same sandbox as something against a social media company where
- 29:33Speaker 1: the whole idea behind it is to share information? So
- 29:37Speaker 1: these are sort of open questions there. And then in
- 29:39Speaker 1: the District of Columbia case, I'm going to be really
- 29:43Speaker 1: interested to see how standing works there as well. Because
- 29:46Speaker 1: if I were the Trump administration or its defenders, I
- 29:49Speaker 1: would be saying that, you know, there is a delay
- 29:52Speaker 1: on public dissemination of information between groups of people all
- 29:55Speaker 1: the time. And depending on the amount of delay here,
- 29:58Speaker 1: you know, this might be fine under the Constitution.
- 30:02Speaker 2: As you write on Monday, a group of former prosecutors
- 30:05Speaker 2: and federal agents filed an amicus brief in yet another
- 30:08Speaker 2: case against this service in the Southern District of New York.
- 30:12Speaker 1: So you have this group of amicus, 53 prosecutors and
- 30:16Speaker 1: law enforcement agents that worked on public integrity, public corruption matters.
- 30:21Speaker 1: And they're pointing to all of these concerns over the
- 30:24Speaker 1: ethics that you were bringing up before. They're just trading
- 30:27Speaker 1: on public information. This is profiting from the.
- 30:33Speaker 2: Office.
- 30:33Speaker 1: And it's not just Trump. We're talking about posts from
- 30:37Speaker 1: other federal officials. You've got Deputy Chief of Staff Dan Scavino.
- 30:42Speaker 1: You've got HHS Secretary Robert F. Kennedy Jr. You've got
- 30:46Speaker 1: Transportation Secretary Sean Duffy and FBI Director Kash Patel. And
- 30:51Speaker 1: at least in the D.C. litigation, you have Natalie Hart,
- 30:54Speaker 1: Trump's executive assistant, as a defendant because she's the fast
- 30:57Speaker 1: fingers behind Trump's true social posts. So it's even broader
- 31:02Speaker 1: than Trump when it comes to this idea of taking
- 31:05Speaker 1: public information, putting it behind a paywall, at least for
- 31:08Speaker 1: a limited amount of time, and extracting profits from it.
- 31:11Speaker 2: I mean, this is unique, right? This has never happened before.
- 31:15Speaker 2: Anything like this.
- 31:17Speaker 1: This is unique. There is no precedent for it. You
- 31:20Speaker 1: don't see anything in these lawsuits referencing back to anything from,
- 31:24Speaker 1: you know, the times of earlier American scandals. You know,
- 31:28Speaker 1: we're inside the eye of a hurricane here, you know,
- 31:32Speaker 1: looking out at the combination between an aggressive social media
- 31:37Speaker 1: company that's looking to monetize and compete using, you know,
- 31:42Speaker 1: an owner president's post. And you're looking at liberal groups
- 31:47Speaker 1: reaching out to try to stop it, you know, because
- 31:50Speaker 1: they see it either as disadvantaging their people limiting access
- 31:53Speaker 1: to public information or as a grift. So, yes, this
- 31:57Speaker 1: is completely unheard of.
- 31:59Speaker 2: I mean, if this were not President Trump, it's something
- 32:03Speaker 2: that you would expect an agency like the SEC to
- 32:06Speaker 2: be investigating.
- 32:07Speaker 1: You'd expect that. I think that we would run into
- 32:10Speaker 1: similar issues that we saw with investigations regarding Jack Smith
- 32:15Speaker 1: and the fact that you cannot investigate a sitting president. But,
- 32:21Speaker 1: you know, we also have some interesting nesting issues there, right?
- 32:26Speaker 1: Because Trump's trust, the blind trust, holds his ownership in this.
- 32:30Speaker 1: And so I'm sure there's someone out there who can
- 32:33Speaker 1: make an argument that there should be an investigation into this,
- 32:36Speaker 1: but you don't have that yet. You see in California, too,
- 32:40Speaker 1: that the underlying allegations here sort of, you know, beg
- 32:44Speaker 1: for that, right? They're saying that there are violations here
- 32:48Speaker 1: of securities laws, but you don't have an investigation to
- 32:53Speaker 1: back that up. So the question then becomes, if you
- 32:56Speaker 1: don't have some sort of written in stone violation there,
- 33:01Speaker 1: can you support the allegations that San Francisco is bringing?
- 33:05Speaker 2: Do you know how Truth Social is doing as a company?
- 33:08Speaker 1: Not well, according to Bloomberg's own reporting. During a recent call,
- 33:13Speaker 1: it sounds like there are several hundred million dollars in debt.
- 33:16Speaker 1: The gist is that, you know, they're sort of floundering
- 33:19Speaker 1: and this could be a way for them to make
- 33:22Speaker 1: up the gap that they have between other social media companies.
- 33:25Speaker 1: And $ 100, 000, you know, per user that's looking for this
- 33:29Speaker 1: quick information is not a drop in the bucket. That
- 33:31Speaker 1: can be serious cash.
- 33:33Speaker 2: And do you have any idea how much they've made
- 33:36Speaker 2: so far?
- 33:37Speaker 1: I've seen reporting that indicates that they've made about a
- 33:40Speaker 1: million dollars in one month.
- 33:41Speaker 2: I'm surprised there hasn't been more publicity about this, at
- 33:45Speaker 2: least so far. Perhaps the lawsuits will bring the publicity.
- 33:50Speaker 1: You see these lawsuits trying to attack and challenge this
- 33:55Speaker 1: unprecedented business relationship with the sitting president that raises all
- 33:59Speaker 1: of these issues and concerns. There's going to be fights
- 34:02Speaker 1: over standing. There's going to be fights over applications of
- 34:05Speaker 1: these law and whether these litigants can prove of these claims.
- 34:09Speaker 1: But the underlying accusation that a public official is seeking
- 34:14Speaker 1: to profit from early announcements, that's not in dispute. It's
- 34:18Speaker 1: actually the business model.
- 34:20Speaker 2: Well, thanks so much for the conversation, Alex. That's Bloomberg
- 34:22Speaker 2: Law Senior Correspondent Alex Ebert. And that's it for this
- 34:26Speaker 2: edition of the Bloomberg Law Show. Remember, you can always
- 34:29Speaker 2: get the latest legal news on our Bloomberg Law Podcast.
- 34:32Speaker 2: You can find them on Apple Podcasts, Spotify, and at
- 34:36Speaker 2: www.bloomberg.com slash podcast slash law. And remember to tune into
- 34:41Speaker 2: the Bloomberg Law Show every weeknight at 10 p.m. Wall
- 34:45Speaker 2: Street time. I'm June Grosso, and you're listening to Bloomberg.