How do you solve a problem like George Santos?

Dec 28, 2022

By Rachael Bade, Eugene Daniels and Ryan Lizza

Presented by Binance

With help from Eli Okun and Garrett Ross

George Santos speaks.

Republican leaders haven't yet weighed in on Rep.-elect George Santos (R-N.Y.), but that won't keep the drama at bay when Congress returns next week. | John Locher/AP Photo

DRIVING THE DAY

For the first time since the NYT exposed GEORGE SANTOS (R-N.Y.) for fabricating his resume, some prominent Republicans are starting to turn on the congressman-elect.

On Tuesday, two New York GOPers who joined Santos in the party's banner year in the Empire State — Reps.-elect NICK LaLOTA and ANTHONY D'ESPOSITO — put out statements calling for investigations or condemning Santos' lies.

"As a Navy man who campaigned on restoring accountability and integrity to our government, I believe a full investigation by the House Ethics Committee and, if necessary, law enforcement, is required," LaLota said. "New Yorkers deserve the truth and House Republicans deserve an opportunity to govern without this distraction."

Meanwhile, on Fox News on Tuesday night, former Rep. TULSI GABBARD, who has left the Democratic Party and shifted right since departing Congress, grilled Santos in a must-watch clip while filling in for TUCKER CARLSON.

"All of these lies that you've told, not just one little lie, or one little embellishment — these are blatant lies," Gabbard said on a split-screen shot with Santos. "My question is, do you have no shame?"

Reactions to the interview neatly exposed the divide among House Republicans over how to handle the Santos affair — including a split among supporters of Speaker hopeful KEVIN McCARTHY:

— Rep. JIM BANKS (R-Ind.) retweeted a video of the interview, adding: "Good job @TulsiGabbard."

— Rep. MARJORIE TAYLOR GREENE (R-Ga.), no stranger to controversy herself, went after Gabbard on Twitter while calling on the GOP to give the fabulist congressman-elect a shot.

"I think we Republicans should give George Santos a chance and see how he legislates and votes, not treat him the same as the left is," she tweeted after praising him earlier in the day for "being honest with his district now." (Greene, you'll recall, was booted from her committees by Democrats because of past incendiary remarks about Jews, Democrats and others. Now, as reporters try to figure out if Republicans will refuse to seat Santos on committees next year, she's coming to his defense.)

The divisions came to the fore amid news that Santos actuallyhasn't stopped lying just yet. In the wake of Santos' all-timer claim on Monday that he "never claimed to be Jewish" and considered himself "Jew-ish," not "Jewish," The Forward's Jacob Kornbluh dug up some receipts: Santos' campaign put out a position paper earlier this year in which he labeled himself a "proud American Jew."

In response, the Republican Jewish Coalition said Santos "deceived us" both publicly and privately, and "[w]e are very disappointed," as Kelly Hooper recaps. "He has begun his tenure in Congress on a very wrong note," the group added. "He will not be welcome at any future RJC event."

And that's not all. This morning, Semafor's Kadia Goba is up with an interesting piece putting the spotlight on Santos' sudden influx of wealth, a perplexing mystery that has opened him up to accusations that one of his recent companies was a front for illegal campaign donations.

A message from Binance:

It's been a tough year for crypto. After unprecedented fraud and mismanagement, industry confidence has been shaken. As the world's largest crypto exchange, Binance believes greater transparency is critical. At Binance, user assets are backed 1:1 and our capital structure is debt-free, and we are eager to work with regulators to help bring order to the markets. Learn more about our commitment to moving forward in Politico this week.

THE REAL QUESTION: WHAT WILL GOP LEADERS DO? So far, it's been crickets. The NYT and CNN this week reached out to leadership offices and the NRCC for comment. There were no responses.

It's unsurprising that McCarthy has refused to weigh in given both his past refusal to repudiate his members embroiled in scandal and his impending speakership vote — which is now less than a week away. McCarthy needs every vote he can get, and if he comes out swinging against Santos, he could lose support.

Still, that won't keep the drama at bay when Congress returns next week. Some senior Democrats, including Reps. TED LIEU (D-Calif.) and JOAQUIN CASTRO (D-Texas), have started calling for Santos to resign, as WaPo's Ellen Francis and Liz Goodwin report. How long until there's a movement on the left to try to force a vote to keep him from being seated in Congress?

Related read: "How George Santos Defrauded My Old Congressional District," by former Rep. STEVE ISRAEL in The Atlantic

Good Wednesday morning, and thanks for reading Playbook. It's T-minus six days until McCarthy's big speakership vote. Do you know something about his strategy? Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza.

BIG IMMIGRATION DECISION — "Supreme Court blocks lifting of Trump-era Title 42 border policy," by Myah Ward and Josh Gerstein: "The high court's action spares the Biden administration from a court-ordered winding down of the policy, as both Republicans and Democrats warned that the U.S. wasn't prepared to handle the likely influx of migrants … The Supreme Court acted on a 5-4 vote, with the court's three liberals joined by conservative Justice NEIL GORSUCH in dissent."

The Gorsuch passage that's getting attention: "[T]he current border crisis is not a COVID crisis. And courts should not be in the business of perpetuating administrative edicts designed for one emergency only because elected officials have failed to address a different emergency. We are a court of law, not policymakers of last resort." Interesting context: "Latest U.S. border statistics show waning use of Title 42," by WaPo's Nick Miroff

A message from Binance:

As the world's largest crypto exchange, Binance believes greater transparency is critical. At Binance, user assets are backed 1:1, and we're eager to work with regulators to help bring order to the markets. Learn more about our commitment to moving forward in Politico this week.

FLAG IT — "Trump tax returns to be released by U.S. House panel on Friday," by Reuters' Moira Warburton

CLICKER — "The Webb Telescope Is Just Getting Started," by NYT's Dennis Overbye in Baltimore: "The first scientific results are coming in, and the $10 billion instrument is working even better than astronomers had dared to hope."

PRESIDENT JOE BIDEN'S WEDNESDAY — The president has nothing on his public schedule, as he's on vacation in the U.S. Virgin Islands.

VP KAMALA HARRIS' WEDNESDAY — The VP has nothing on her public schedule.

THE SENATE and THE HOUSE are out.

PHOTO OF THE DAY

At Midway Airport in Chicago on Tuesday, canceled flights leave stranded travelers looking for their bags. | Jim Vondruska/Getty Images

PLAYBOOK READS

THE PANDEMIC

2020 VIBES — The Biden administration is considering adding new pandemic restrictions on travelers from China, like a negative coronavirus test or tracking measures, as the lifting of strict limits in an immunologically naive population prompts a massive surge there, Bloomberg's Jordan Fabian scooped. U.S. officials are worried not only about the rise in cases but about the trustworthiness of China's Covid data. And "the talks have been prompted in part by concerns over the lack of genomic sequencing data that could help identify the emergence of a new variant," as health experts warn that China's surge could birth the first new bad one in over a year.

ALL POLITICS

PULL UP A CHAIR — As RONNA McDANIEL and HARMEET DHILLON duke it out for RNC chair, the intra-party spat is distracting Republicans "from any serious consideration of the thornier problems facing the party" or effort to change course and win swing voters, NYT's Jonathan Weisman and Ken Bensinger report. Neither woman represents a break from Trumpism, which some Republicans think cost them the Senate this year — despite an ongoing RNC midterm autopsy led by HENRY BARBOUR. (Dhillon is co-chairing that, too.)

LAKE LATEST — "Judge in Kari Lake case rejects sanctions, awards $33,000 in legal fees," by the Arizona Republic's Mary Jo Pitzl: "The judge in KARI LAKE's election challenge on Tuesday rejected requests for sanctions and nearly $700,000 in attorney fees but granted $33,000 to pay for expert witnesses hired by KATIE HOBBS. In his ruling, Maricopa County Superior Court Judge PETER THOMPSON wrote that although Lake didn't provide the 'clear and convincing evidence' needed to prevail in her case, that was not the same thing as saying her lawsuit over the results of the Arizona governor's race was 'groundless and presented in bad faith.'" Lake is appealing all the decisions.

COMING ATTRACTIONS — "On the ballot in 2023: Southern governors, big-city mayors," by AP's Michelle Price

DOWN-BALLOT DISPATCH — In a new memo, the Democratic nonprofit Arena lays out a plan for the party to win competitive statehouse seats with a targeted investment of just $25,000 each, The Daily Beast's Jake Lahut reports. Building off a midterm record in which they won eight of 11 seats, Arena lays out a moneyball approach of investing in trained field organizers early in a campaign — and the Pennsylvania House Democratic Campaign Committee says Arena's strategy is the reason they flipped that chamber in November. Early spending on staff is much more effective than late spending on ads, Arena says.

2024 WATCH — As he weighs a possible presidential bid, Virginia Gov. GLENN YOUNGKIN will first take on a pair of big tests in Richmond next year: trying to secure conservative victories on abortion and taxes. WSJ's Scott Calvert reports that Youngkin's desires to pass a 15-week abortion ban and $1 billion in tax cuts could face stiff resistance in the Democratic-led state Senate. "Virginians elected a pro-life governor," Youngkin argues, but he says he's "very aware of Virginia's overall state of politics."

BEYOND THE BELTWAY

POLITICAL VIOLENCE WATCH — ADAM FOX, one of the heads of the scheme to kidnap Michigan Gov. GRETCHEN WHITMER, landed a 16-year sentence behind bars Tuesday. Though prosecutors had requested a life sentence, the punishment still "could set a benchmark for future political extremism cases," The Detroit News' Kara Berg reports from Grand Rapids.

WINTER STORM FALLOUT — "Deadly Winter Storm Exposes Deep Flaws of US Energy System," Bloomberg … "Transportation Department will be looking into Southwest flight cancellations, Buttigieg says," NBC

THE NEXT CULTURE WAR FRONT LINES — In Republican-controlled statehouses next year, legislators are gearing up for a host of legislative fights on gender and LGBTQ issues, particularly targeting transgender people, Marissa Martinez and Bianca Quilantan report. South Carolina is leading the way on a bill to define gender in the state constitution "in the context of reproductive potential," not someone's gender identity. The Independent Women's Forum is promoting a nine-pronged "Women's Bill of Rights." Other bills could seek to ban drag shows, ban gender-affirming care for minors, restrict books with LGBTQ (and other) themes and bar elementary-school instruction about gender and sexuality.

FOR YOUR RADAR — "Newsom, key Democratic governors brace for pension crunch as recession looms," by Sam Sutton

ICYMI — "DeSantis 'Czar' Used Alias, Private Email As Contractor Sought Migrant Flights' Deal," by NBC 6 South Florida's Tony Pipitone: "As his former client was seeking the contract to relocate migrants from Texas to Martha's Vineyard, Gov. RON DeSANTIS' 'public safety czar' gave Vertol Systems Company CEO JAMES MONTGOMERIE a private 'email channel to use' … Call sign: Heat 19. Alias: Clarice Starling. … [LARRY] KEEFE's Gmail alias [was] a nod to the FBI trainee played by JODIE FOSTER in the movie 'Silence of the Lambs.'"

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JAN. 6 AND ITS AFTERMATH

THE LATEST TRANSCRIPTS — The House Jan. 6 committee released a new batch of transcripts Tuesday from its witness interviews. CNN breaks down some of the top takeaways, including CASSIDY HUTCHINSON arguing with STEFAN PASSANTINO, White Housegossip that DONALD TRUMP might concede shortly after the 2020 election and QAnon chatter circulating at the highest levels of government from Greene.

— Former Treasury Secretary STEVEN MNUCHIN recounted a brief discussion about the 25th Amendment after Jan. 6, though he decided against it, per Bloomberg.

— JUDD DEERE recalled that White House public schedules started becoming much less specific in December 2020 because that's when Trump found out they were public.

THE WHITE HOUSE

HEADLINE OF THE DAY — "Bridge Delay," by N.Y. Mag's Gabe Debenedetti: "The president himself has been half-whispering 'Told ya so' to friends, suggesting that he'll remember the shit he got from so-called allies for his 'ultra-MAGA' midterm messaging and his focus on safeguarding democracy. He's been hinting to associates that he has plenty he still wants to do in the White House since so much of his first year and a half was consumed with pandemic recovery. And he's made clear that he now has little patience for all the rumbling about the other, younger Democrats waiting in the wings for his fall from grace, or at least his retirement."

— If the holidays were once seen as Biden's time to make a call on 2024, the reality now is that "the decision is essentially made," CNN's Kate Bennett and Kevin Liptak report. In D.C., advisers are already working on a State of the Union whose major themes will lead into a reelection campaign, and the family members gathered in St. Croix have already said they're in for another run.

— And Biden's team thinks that Democrats' successes this year affirm the White House's theory of the case, CNN's Phil Mattingly reports. "White House officials view the political salience of his agenda as both an underappreciated element of their ability to defy the expectations of sweeping GOP gains in the midterms and as a critical piece of what comes next. The prospect of divided government – and the exceedingly narrow legislative pathway it brings – has limited effect on an agenda that is now in the implementation phase."

CONGRESS

THE NEW LEFT — Add five more representatives-elect to the list of insurgent progressive "squad" members in the House Democratic Caucus, Nick Wu reports this morning. SUMMER LEE (Pa.), MAXWELL FROST (Fla.), GREG CASAR (Texas), BECCA BALINT (Vt.) and DELIA RAMIREZ (Ill.) are among the names you can get ready to hear a lot. "They jokingly call Rep.-elect ROBERT GARCIA (D-Calif.), the first openly LGBTQ immigrant elected to Congress, 'Mr. President' and they've already got a bourbon supplier in Rep.-elect MORGAN McGARVEY (D-Ky.). They're also helping each other find affordable housing."

EXIT INTERVIEW — As he heads out of Washington, Sen. ROY BLUNT (R-Mo.) tells Semafor's Joseph Zeballos-Roig that he's "totally unhappy" with how Congress operates now, including a much more centralized appropriations process. "Congress functions when it needs to," Blunt says. "But there's a much better way to do it."

PAINT BY NUMBERS — "Art at Capitol honors 141 enslavers and 13 Confederates. Who are they?" by WaPo's Gillian Brockell

WAR IN UKRAINE

DRONING ON — The U.S. is stepping up its efforts to interfere with the alliance delivering Iranian drones to Russia for use in Ukraine, NYT's David Sanger, Julian Barnes and Eric Schmitt report. The broad range of activities includes preventing Iran from getting technologies it needs to make the drones; impeding Russia's abilities to launch them; and arming Ukraine with tools to down them. "But all three approaches have run into deep challenges, and the drive to cut off critical parts for the drones is already proving as difficult as the decades-old drive to deprive Iran of the components needed to build the delicate centrifuges it uses to enrich near-bomb-grade uranium."

POLICY CORNER

WHAT JANET YELLEN IS UP TO — "Treasury Department Outlines Rules for New Corporate Taxes," by NYT's Jim Tankersley: "The Treasury Department on Tuesday set broad rules for a new tax on stock repurchases that had been created under a law signed by President Biden earlier this year, largely rejecting business lobbyists' efforts to narrow its scope. … The department also released initial guidance on Tuesday for a second, further-reaching tax included in the Inflation Reduction Act: an alternative minimum tax."

LIVING IN THE PAST — "Social Security denies disability benefits based on list with jobs from 1977," by WaPo's Lisa Rein

GHOST IN THE MACHINE — "A.T.F. Moves to Close 'Ghost Guns' Loophole in Federal Rule," by NYT's Glenn Thrush: "On Tuesday, the Bureau of Alcohol, Tobacco, Firearms and Explosives directed vendors who sell partially finished frames of Glock-style handguns — the pistol grip and firing mechanism — to treat them like fully completed firearms, which are subject to federal regulations."

PLAYBOOKERS

Max Miller got tripped up by Greenwich Mean Time.

Ali Alexander blamed Charlie Kirk for Jan. 6 and said "he's losing donors and popularity."

Geoff Bennett and Amna Nawaz want their PBS NewsHour to be "not your father's Oldsmobile."

IN MEMORIAM — "Donald P. Baker, who chronicled Va. politics for The Post, dies at 90," by WaPo's Harrison Smith: "Mr. Baker, a West Virginia native with twinkling eyes and a full, scraggly beard, was The Post's Richmond bureau chief from 1985 until his retirement in 1999. For much of that period he was considered the dean of the Richmond press corps, known for his tough, aggressive questioning and for his shambling style, which led friends to liken him to Columbo."

SPOTTED: Rep. Adam Schiff (D-Calif.)on Monday at Group Therapy Pub & Playground in Greenville, S.C., where several people stopped to thank him for his service on the Jan. 6 committee.

TRANSITIONS — Former Rep. Mike Doyle (D-Pa.) is joining K&L Gates as a government affairs counselor in the firm's public policy and law practice. … Sergio Mata-Cisneros is now director of special projects at Hollis Public Affairs. He previously was advocacy and policy analyst at Bread for the World.

HAPPY BIRTHDAY: Rep. August Pfluger (R-Texas) … NBC's Sahil Kapur … AP's Josh Boak … Steve Castor of the House Judiciary GOP … Roll Call's John Bennett … POLITICO's Zach Montellaro, Han Ah-Sue, Ben Fox and Tom Frank … E&E News' Erica Martinson … Susanna Quinn … Kevin Boyd … DOT's Mackenzie Praytor … Emil Henry … NPR's Melissa Block … Maria Olson … D.J. Jordan … Seth Wimer of Brandywine Public Affairs … Shari Yost Gold … Debbie Willhite … former Sen. Tim Johnson (D-S.D.) … former Reps. Spencer Bachus (R-Ala.) and Jim McDermott (D-Wash.) … Christina Sevilla … Jacqui Bassermann of the American Red Cross … Clara Brillembourg of Foley Hoag … CBS' Christa Robinson … Michael Trujillo … Gabrielle Wanneh … former CFPB Director Kathy Kraninger … former Arkansas Gov. Mike Beebe … DFC's Jake Levine … Ed McFadden

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Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn't happen without our editor Mike DeBonis, deputy editor Zack Stanton and producers Setota Hailemariam and Bethany Irvine.

Correction: Tuesday's Playbook misstated Nebraska Republican Jeff Fortenberry's status in Congress. He is a former member.

A message from Binance:

It's been a tough year for crypto. Macroeconomic headwinds have ushered in challenging market conditions, followed by unprecedented fraud and mismanagement. The combination rocked consumer confidence and created a level of skepticism about the future of crypto. Binance strongly believes crypto's best days remain ahead, but to get there, transparency is the only path forward. At Binance, we are investing in transparency protocols to demonstrate our strong financial health. Our capital structure is debt-free and all user assets are backed 1:1. Binance does not borrow against customers' funds or invest them without their consent. Most importantly, we look forward to working with policymakers to better protect consumers while promoting innovation. Learn more about our commitment to moving forward in Politico this week.