Overnight Energy: Watchdogs unveil findings on EPA, Interior controversies | GAO says EPA violated law with soundproof booth | IG says Zinke could have avoided charter flight | GOP chair probes Pruitt's four email addresses

View in your browser     Watchdog reports galore: A number of key reports and internal emails released Monday shed new light on a number of ethical questions plaguing both the Environmental Protection Agency (EPA) and the Interior Department.   Over at the Environmental Protection Agency...   GAO SAYS PRUITT'S SPENDING ON SOUNDPROOF BOOTH BROKE LAW: The Government Accountability Office ruled Monday that the EPA broke the law when it spent more than $43,000 on a soundproof privacy booth for Administrator Scott Pruitt. The main issue: Any spending above $5,000 on furnishing or decorating an agency official's office must be preceded by a notification to the Appropriations Committees in the House and the Senate, a step the EPA didn't take. Since the $5,000 cap was in the federal government spending bill passed last year, the action also violated the Antideficiency Act, a longstanding bill that prohibits federal agencies from spending money that hasn't been appropriated, or spending it in a way Congress didn't allow, GAO said in a letter to Democratic lawmakers who requested it. The EPA argued to the GAO during the investigation that the installation of the booth was not a redecoration and therefore not subject to the $5,000 cap. The agency told the GAO that the booth "not only enables the Administrator to make and receive phone calls to discuss sensitive information, but it also enables him to use this area to make and receive classified telephone calls (up to the top secret level) for the purpose of conducting agency business," according to the GAO's report. Nevertheless, the watchdog found that the EPA violated this statutory requirement and directed the EPA to report its violation to Congress and the president "as required by law."   One GOP chairman thins Pruitt has some explaining to do: Sen. John Barrasso (R-Wyo.), chairman of the Environment and Public Works Committee, demanded that the EPA explain itself. "It is critical that EPA and all federal agencies comply with notification requirements to Congress before spending taxpayer dollars," he said in a statement. "EPA must give a full public accounting of this expenditure and explain why the agency thinks it was complying with the law." Democratic lawmakers who requested the report were quick to respond to the findings. "Scott Pruitt likes to talk about returning the EPA to the rule of law, but it turns out he's better at breaking it than following it," Sen. Tom Udall (D-N.M.), ranking member of the Senate Appropriations Subcommittee on Interior, Environment and Related Agencies, said in a statement Monday. "This is just one more example of how Scott Pruitt is blatantly breaking laws and ethics rules that protect taxpayers from government waste, fraud and abuse in order to help himself to perks and special favors -- and taking deliberate steps to hide everything from Congress and taxpayers," he said.   Why it matters: Monday's report was one of the first government watchdog reports in a series that Democrats and Pruitt's opponents have sought regarding numerous controversies during his time at the EPA. To them, the report was a home run: A nonpartisan, official finding that Pruitt broke the law. It's the kind of thing they would love to see more of. But the report also has some important facts for Pruitt. For one, the only mistake he and his staff made was not notifying Congress of the expenditure. If they had done that, there would be no problem with the booth -- at least from an appropriations law standpoint. Secondly, the GAO took care not to weigh in on whether Pruitt has a legitimate security need for the booth, despite the presence of security communications facilities elsewhere in the EPA building. "We draw no conclusions regarding whether the installation of the privacy booth was the only, or the best, way for EPA to provide a secure telephone line for the Administrator," the watchdog agency said. Read more.     IG CONFIRMS PRUITT'S CHIEF OF STAFF GAVE RAISES: The EPA's Office of Inspector General (OIG) came out with its own report Monday, a brief "management alert" on the use of a special hiring method to hire EPA staffers or give them raises under Pruitt's leadership. The report confirmed that Pruitt Chief of Staff Ryan Jackson signed off on the raises, as he has previously said. But Jackson's signatures did say "for Scott Pruitt" on them, implying that Pruitt was aware of the raises and approved of them. The OIG's report doesn't identify the employees who got the raises. But based on the details in the report, two of them appear to be Pruitt's scheduling director Millan Hupp and senior counsel Sarah Greenwalt, and the EPA declined to identify the third one. The Atlantic first reported on the Hupp and Greenwalt raises earlier this month. Jackson increased the aides' pay using a special authority the EPA has under the Safe Drinking Water Act. But tha came after the White House rejected the EPA's request to make the raises through the normal procedure for political appointees. EPA spokesman Jahan Wilcox said the raises followed standard agency procedures. "Salary determinations for appointees are made by EPA's chief of staff, White House liaison, and career human resources officials," he said in a Monday statement. "Salaries are based on work history; and, any increases are due to either new and additional responsibilities or promotions. Salary determinations are made to avoid disparities among positions of equivalent or similar responsibilities, to the extent possible." Read more.   Over at the Interior Department… INSPECTOR GENERAL SAID ZINKE COULD HAVE AVOIDED CHARTER PLANE TRAVEL: The Interior's Office of the Inspector General released a report Monday that found that Interior ethics officials who signed off on Zinke's $12,375 charter flight after a meeting with the Las Vegas Golden Knights were not fully aware of the purpose of the meeting. The report found in its investigation that at least one ethics official who signed off on the charter plane last June for a flight between Las Vegas and Whitefish, Mont., believed the event was to speak with kids, not professional athletes. Additionally, ethics officials were not aware that the team was owned by a former campaign donor to Zinke's congressional run in Montana. "If ethics officials had known Zinke's speech would have no nexus to the DOI, they likely would not have approved this as an official event, thus eliminating the need for a chartered flight. Moreover, had ethics officials been made aware that the Golden Knights' owner had been a donor to Zinke's congressional campaign, it might have prompted further review and discussion," the IG office found. The team is owned by Bill Foley, a billionaire businessman and board chairman of Fidelity National Financial Inc., who heavily donated to Zinke's first congressional campaign in Montana according to FEC filings. Foley donated the maximum contribution amount of $2,600 in 2013 and 2018. Chicago Title Services, which is owned by Fidelity, donated $23,900 to Zinke's campaign. Interior Spokeswoman Heather Swift said the new IG report says "exactly what was known all along." "The report shows that in every instance reviewed, the secretary's staff consulted with and sought prior approval from the career ethics officials and travel lawyers, and that we follow their expert advice," she said in a statement.   On the upside for Interior: The report appeared to over all vindicate charter plane travel Zinke took in fiscal year 2017 saying that he "generally followed relevant law, policy, rules, and regulations." That included Zinke's visit to the U.S. Virgin Islands via a chartered plane in March 2017 and a trip to Alaska in May with Sen. Lisa Murkowski (R-AK). Read more here.   EMAILS SHOW INTERIOR CONSIDERED PAYING 200K FOR NEW FLAG POLES: The Interior Department took estimates for setting up four flag poles outside its main building in Washington, D.C., to fly personal flags for Secretary Ryan Zinke at a cost as high as $200,000, according to internal emails released Monday by the agency. The department ultimately decided against installing the new poles, the documents show, choosing instead in March 2017 to use three smaller, existing poles on top of its building. It approved the purchase of three flags at a cost of $189.51 each from the National Flag Company, according to the emails. The flags are 5 feet by 9.5 feet. The emails were released in response to a Freedom of Information Act (FOIA) request and posted publicly by Interior. Zinke has received media attention for his desire to fly specialized flags above the department that would signify his presence. Zinke is a former Navy SEAL. An Interior spokeswoman said he wanted to fly the flag as a way of restoring honor and tradition to the department. "Secretary Zinke has a deep respect for tradition. Since his confirmation, the Secretary has made a concerted effort to uphold, and in this case, revive long-held traditions at Interior," Spokeswoman Heather Swift told The Hill. Read more here:   Elsewhere in the world of emails...   BARRASSO PROBES PRUITT'S FOUR EMAIL ADDRESSES: Barrasso is looking into the EPA's use of four email addresses for official work. In a Friday letter obtained by The Hill, Barrasso asked Pruitt whether the agency has ensured that federal records requests involving him are searching all of his addresses. "Can you confirm that the EPA does in fact search all your official email accounts when responding to [Freedom of Information Act] requests?" Barrasso asked Pruitt in the letter. He also asked the EPA head to provide a list of all of the email accounts that Pruitt uses. Two Democratic senators revealed last week that the EPA has four addresses for Pruitt. The EPA said at the time that two of them are used by staff for scheduling and correspondence, one is used by Pruitt himself and one hasn't been used except for three test emails. An EPA spokesman said the agency "will respond to Chairman Barrasso through the proper channels." Barrasso was a leading voice in criticizing then-EPA head Lisa Jackson in 2013, when the agency admitted that she had an email account under the alias "Richard Windsor" that she used extensively for official business. He and other Republicans accused Jackson of trying to hide her emails from Freedom of Information Act (FOIA) requests, while the EPA at the time said the Richard Windsor account was fully incorporated into FOIA searches. Read more.   ON TAP TUESDAY: NPS backlog: The Senate Energy and Natural Resources Committee will hold a hearing on the maintenance backlog and operational needs of the National Park Service (NPS). NPS has a backlog of about $11.5 billion, and lawmakers and administration officials have been looking at fixes for it. The Trump administration wants to use excess money from expanded production of oil, natural gas and other energy on federal land and offshore, but many Democrats said the numbers don't add up. Senators will hear from Lena McDowall, the NPS's deputy director for management and administration. Other witnesses will be representing stakeholders like the National Park Foundation, the Property Environmental Research Council and the Coalition to Protect America's National Parks. FERC budget: The House Energy and Commerce Committee's energy subpanel will bring in all five members of the Federal Energy Regulatory Commission Tuesday for a hearing on its budget request for fiscal 2019.   OUTSIDE THE BELTWAY: Canadian Prime Minister Justin Trudeau is pledging to financially support the Trans Mountain oil pipeline project to ensure that it gets built, The Globe and Mail reports. The first commercial liquefied natural gas (LNG) cargo from the Cove Point LNG terminal in Maryland left Monday, Reuters reports. BP is pledging not to increase its greenhouse gas emissions beyond 2015 levels, the Houston Chronicle reports.   IN CASE YOU MISSED IT: Check out stories from Monday and the weekend ... -GOP chairman probes Pruitt's four email addresses -Watchdog: Zinke could have avoided charter flight after meeting with Las Vegas hockey team -Young people sue Florida governor to force action on climate change -Watchdog: Pruitt's chief of staff responsible for aides' controversial raises -Interior looked at $200k estimate to fly secretary's flag -GAO: EPA violated law with Pruitt's soundproof booth -Pruitt's Superfund adviser downplays his federal ban from banking     Please send tips and comments to Timothy Cama, tcama@thehill.com; and Devin Henry, dhenry@thehill.com. Follow us on Twitter: @Timothy_Cama, @dhenry, @thehill         Did a friend forward you this email? Sign up for Energy Newsletters     Forward Energy Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Defense: Fallout from Syria strikes | Corker introduces terrorism war authorization | Dem opposition to Pompeo grows

View in your browser     Happy Monday and welcome to Overnight Defense. I'm Rebecca Kheel, and here's your nightly guide to the latest developments at the Pentagon, on Capitol Hill and beyond.   THE TOPLINE: The dust is settling in Syria after President Trump, along with the leaders of France and the United Kingdom, ordered a missile strike on Syrian chemical weapons facilities Friday night. On Monday, the administration had been expected to slap new sanctions on Russia over its support for the Syrian regime after U.S. Ambassador to the United Nations Nikki Haley announced the move Sunday. But the White House walked that back, with White House press secretary Sarah Huckabee Sanders saying Monday morning that "we are considering additional sanctions on Russia and a decision will be made in the near future." Here's a recap of the key details of the strike: What happened: The U.S., French and British militaries launched 105 missiles at three targets at about 9 p.m. Friday eastern time. The targets were the Barzah Research and Development Center, a center for the development and production of chemical and biological weapon; the Him Shinshar chemical weapons storage site, the primary location of Syria's sarin gas; and the Him Shinshar chemical weapons bunker. Was it successful: Trump declared "mission accomplished" on Twitter, and the Pentagon said Saturday that the airstrikes "successfully hit every target." And while Russia claims Syria shot down 71 of the missiles, the Pentagon says nothing was successfully intercepted. Still, it remains to be seen whether the stated goal -- to deter Syrian President Bashar Assad from using chemical weapons again -- was achieved. What happens next: The Trump administration is slated to brief the House and Senate on the strikes Tuesday. As for whether the strikes herald a new U.S. strategy, the White House says no. "The U.S. mission has not changed -- the President has been clear that he wants U.S. forces to come home as quickly as possible," Huckabee Sanders said in a statement Sunday night. "We are determined to completely crush ISIS and create the conditions that will prevent its return. In addition we expect our regional allies and partners to take greater responsibility both militarily and financially for securing the region."     WAR AUTHORIZATION INTRODUCED -- BUT NOT FOR SYRIAN REGIME: Senate Foreign Relations Committee Chairman Bob Corker (R-Tenn.) and Sen. Tim Kaine (D-Va.) introduced their long-anticipated new authorization for the use of military force (AUMF) Monday. The timing means it's being read in the context of the Syrian strikes, but the senators have been working on the AUMF for months, and it is meant only for non-state terrorist groups such as ISIS and al Qaeda. The Foreign Relations Committee is aiming to mark up the bill the week of April 23, but it's unclear whether it has a chance beyond that. Here's a breakdown of what the AUMF would do: -- Authorizes "all necessary and appropriate" actions against al Qaeda, the Taliban, ISIS and "associated forces." -- Provides a list of existing associated forces and allows the president to add to that list within 30 days after the passage of the bill. -- Requires the president to notify Congress 48 hours after striking a new associated force or using military action in a new country. It also gives Congress a 60-day window to block further military action against that group or in that country. -- Establishes a process for reviewing the AUMF every four years without sunsetting the authorization. -- Repeals the 2001 and 2002 AUMFs.   POMPEO WATCH: Secretary of State nominee Mike Pompeo's path to clearing the Senate Foreign Relations Committee is getting more precarious. On Monday, committee member Sen. Chris Murphy (D-Conn.) said he will not vote for Pompeo. "I hope my concerns will prove to be unwarranted, but they mean I cannot support Director Pompeo's nomination," Murphy said in a statement. "I will vote no." Murphy follows Sen. Tim Kaine (D-Va.), who announced his opposition Sunday. "Now more than ever, we need a Secretary of State who will stand strong for vigorous U.S. diplomacy," Kaine said in a statement. "I believe that Mike Pompeo would exacerbate President Trump's weaknesses rather than uphold our diplomatic legacy." Why it matters: Committee Republican Sen. Rand Paul (Ky.) has vowed to vote against Pompeo. That means Pompeo needs at least one Democrat on the committee to be favorably reported out. Kaine voted for Pompeo as CIA director. The only other committee Democrat to have voted for Pompeo for CIA director was Sen. Jeanne Shaheen (D-N.H.), who has not yet said definitely how she will vote now. Pompeo can still go to the Senate floor without committee approval, but it would be a rare and controversial move to do so.   BORDER DEPLOYMENT UPDATE: California's guardsmen won't be participating in President Trump's border patrol mission, officials confirmed Monday. Robert Salesses, the Pentagon's deputy assistant secretary for homeland defense integration, said California declined a specific request to commit 237 guardsmen to two sectors near the Mexican border, San Diego and El Centro. The tasks were operational support responsibilities, including motor transport, maintenance, radio communication, heavy equipment operations, some planning and administrative tasks and surveillance camera operations. What's next: California Gov. Jerry Brown (D) earlier said he would accept federal funding to add 400 California Guardsmen, but insisted the troops not be used for immigration enforcement. Salesses and Acting CBP Deputy Commissioner Ronald Vitiello were hopeful Monday that those troops could be used in a later phase of the border mission. "There will be other missions that we're planning for the future state of this operation and so we'll continue to see if those fit better," Vitiello said. Salesses also said "we are in a continuing dialogue, discussion" with the state.   VA NOMINEE MAKES THE ROUNDS: Veterans Affairs Secretary nominee Ronny Jackson met with Senate Veterans Affairs Committee Chairman Johnny Isakson (R-Ga.) on Monday afternoon. "I appreciated meeting with Dr. Jackson today to discuss his nomination to serve as secretary of the Department of Veterans Affairs," Isakson said in a statement after the meeting. "The VA needs a leader who is able to work with Congress to implement legislative solutions and oversee a large and multifaceted department. I congratulate Dr. Jackson on his nomination, and I look forward to chairing his confirmation hearing and learning more about his plans for the VA." Jackson's scheduled to meet with committee ranking member Sen. Jon Tester (D-Mont.) on Tuesday morning. A notice from Tester's office promises the senator will press Jackson on the issue of VA privatization. President Trump announced last month Jackson would be nominated to replace ousted VA Secretary David Shulkin, but the nomination was officially sent to the Senate on Monday.   ON TAP FOR TOMORROW: The Senate Armed Services Committee will hold a confirmation hearing for Adm. Philip Davidson to be commander of U.S. Pacific Command and Gen. Terrence O'Shaughnessy to be commander of U.S. Northern Command at 9:30 a.m. at the Senate Dirksen Office Building, room G-50. https://bit.ly/2H7IhAU The Senate Appropriations defense subcommittee will hold a hearing on the fiscal 2019 budget request for the National Guard and the reserves at 10 a.m. at Dirksen 192. https://bit.ly/2JSKhyT The Senate Foreign Relations Committee will hold a hearing on U.S. policy in Yemen with testimony from officials from the State and Defense departments at 10 a.m. at Dirksen 419. https://bit.ly/2EKvJh4 The House Armed Services Committee will hold a hearing on "Promoting DOD's Culture of Innovation" at 10 a.m. at the Rayburn House Office Building, room 2118. https://bit.ly/2H2gyBJ The House Appropriations homeland security subcommittee will hold a hearing on the Coast Guard's fiscal 2019 budget at 10 a.m. at Rayburn 2359. https://bit.ly/2H7QwRW A House Foreign Affairs Committee subpanel will hold a hearing on the U.S.-Taiwan relationship at 2 p.m. at Rayburn 2172. https://bit.ly/2EOM3xm A Senate Armed Services subcommittee will hold a hearing on Navy shipbuilding programs at 2:30 p.m. at the Russell Senate Office Building, room 232A. https://bit.ly/2DWV5ru A House Armed Services subcommittee will hold a hearing on the fiscal 2019 missile defense budget at 3:30 p.m. at Rayburn 2118. https://bit.ly/2qBJquD    ICYMI: -- The Hill: Top cyber official to leave White House -- The Hill: US, UK blame Russia for coordinated cyberattacks on internet devices worldwide -- The Hill: Opinion: Monica Crowley: Syrian airstrikes show Trump has learned from history -- The Washington Post: Inside the Marines' new mission in Afghanistan: Taking back territory previously won -- Bloomberg: Boeing cited by Pentagon over quality concerns going back years -- Associated Press: Allies vague on evidence linking Syria to chemical attack      Please send tips and comments to Rebecca Kheel, rkheel@thehill.com, and Ellen Mitchell, emitchell@thehill.com. Follow us on Twitter: @thehill, @Rebecca_H_K, @EllenMitchell23         Did a friend forward you this email? Sign up for Defense Newsletters     Forward Defense Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Finance: Trump hits China on currency manipulation, countering Treasury | Trump taps two for Fed board | Tax Day deadline revives fight over GOP overhaul | Justices set to hear online sales tax case

View in your browser     Happy Monday and welcome back to Overnight Finance, which has never requested legal advice from Michael Cohen. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.   THE BIG DEAL: President Trump is at odds (again) with his own administration when it comes to China and its manipulation of currency. Trump on Monday criticized China for devaluing its currency days after the Treasury Department said Beijing was not manipulating the value of its money. Trump said on Twitter that both China and Russia "are playing the Currency Devaluation game as the U.S. keeps raising interest rates. "Not acceptable!" the president tweeted. Here's where things get tricky. Trump's comments came just three days after the Treasury Department declined to label China a currency manipulator despite the president's repeated campaign promises to do so. Treasury's twice-yearly report on foreign currency exchange, released Friday, rebuked China for not doing enough to balance its trade surplus with the U.S. But Treasury did not find that China was devaluing its currency, called the renminbi, to give it an advantage in trade.   Why it matters: Trump had promised throughout his campaign that China would be labeled a currency manipulator under his watch, but this is the third Treasury report issued under his watch that doesn't do that. Trump has routinely accused China of manipulating its currency, undercutting American manufacturers, violating trade laws and cheating U.S. politicians and companies. The president has announced $50 billion in tariffs against Chinese imports to the U.S. and has threatened to impose another $100 billion. China has promised to fight back with its own tariffs on U.S. goods. That makes investors fearful that trade tensions with China and rising Federal Reserve interest rates could suppress economic growth and let more steam out of the volatile stock market.   Fed angle: It's unclear whether Trump's tweet was meant to criticize Fed Chairman Jerome Powell. The tweet mention's the bank's efforts to raise interest rates. It wouldn't be the first time Trump has weighed in on the Fed chairman's monetary policy or expressed his preference for lower interest rates. Either way, it helps to look at Trump's history of comments about Powell's predecessor Janet Yellen for guidance. As a candidate, Trump griped that Yellen's preservation of low interest rates was an "obviously political" ploy to juice the stock market and make former President Obama look good. But when Trump took office, he showered praise on Yellen for doing more or less the same thing she had done under Obama, which Trump criticized as political cover for his predecessor. Powell voted in lockstep with Yellen on monetary policy, so there's little reason to think the Fed's interest trajectory would be dramatically different if Trump renominated Yellen. Both Powell and Yellen had supported a slow, steady increase in interest rates that would quicken as inflation approached the Fed's target. Raising rates too quickly could cut off job gains and economic growth, while waiting too long could risk overheating the economy and rampant inflation. The Fed is expected to raise rates at least two more times for a total of three hikes in 2018. But a growing number of Fed officials and analysts expect a fourth rate hike as inflation begins to reach the Fed's ideal target. If the Fed quickens the pace of rate hikes and the stock market continues its recent volatility, keep an eye on how Trump responds.   What comes next: Randal Quarles, the Fed's vice chairman of supervision, will testify before the House Financial Services Committee on Tuesday. While financial regulation will be the main focus of his hearing, we'll see if any lawmakers ask him to weigh in on the Fed's interest rate path. We previewed what to expect from Quarles' comments on financial regulations and the Fed's efforts to tailor them in Friday's newsletter.     On tap tomorrow House Financial Services Committee: Hearing on the semi-annual testimony on the Federal Reserve's supervision of the financial system, with Fed Vice Chairman of Supervision Randal Quarles, 10 a.m. House Ways and Means Committee: Hearing on federal perspectives on the jobs gaps, 10 a.m. Federal Deposit Insurance Corporation: Meeting on interagency capital rule, 10 a.m. Senate Banking Committee: Hearing on the nominations of Thelma Drake to be Federal Transit Administrator, Department of Transportation, Jeffrey Nadaner to be an Assistant Secretary of Commerce, and Seth Daniel Appleton to be an Assistant Secretary of Housing and Urban Development, 10 a.m. House Small Business Committee: Hearing entitled "Small Business Retirement Plans and the IRS' Employee Plans Fee Change," 10 a.m. House Financial Services Committee: Hearing on housing choice vouchers, 2 p.m. House Judiciary Committee: Hearing on protecting trade secrets in the U.S., 2 p.m. Brookings Institution: Event entitled "Digital currencies: Implications for central banks," 2 p.m. Brookings Institution: Event entitled "How to reform the global monetary system: A pathway to action," 4 p.m.   LEADING THE DAY Tax Day rekindles partisan fight over 2017 overhaul: Elected officials and outside groups are marking Tuesday's tax-filing deadline by stepping up their messaging efforts over the new tax law. Tuesday is the due date for people to file their 2017 tax returns, the last returns they'll file under the old tax code. Supporters of the tax law are touting the benefits of the new measure, arguing that the new code allows people to keep more of their money and makes the U.S. business climate more competitive. But opponents are calling attention to the new law's large benefits for corporations and the wealthy. The Hill's Naomi Jagoda looks at those efforts.   Trump nominates Fed vice chair, governor: Trump announced two new nominees to the Federal Reserve board on Monday. Richard Clarida, a Columbia University Republican economist and monetary policy specialist, will be nominated to serve as vice chairman to Fed Chairman Jerome Powell. Clarida has taught at Columbia since 1988 and is a managing director at Pacific Investment Management Co. He is well regarded by both conservative and liberal economists. Clarida is a moderate Republican in line with Trump's previous Fed nominees. He'd become the highest ranking academic on the Fed board and would serve as the deputy to Fed Chairman Jerome Powell. His decades of teaching and research is seen as a compliment to Powell, the first Fed chairman in more than three decades without a doctorate.  The other nominee, Michelle Bowman, has been Kansas's bank commissioner since the beginning of last year. Bowman was previously a vice president at Farmers & Drovers Bank, a Kansas bank that reported $181 million in assets in 2017. She would fill one of the Fed board's seven-member seats reserved for community bankers. Bowman has also served as counsel or adviser to several lawmakers and congressional committees, followed by stints with the Department of Homeland Security and Federal Emergency Management Agency (FEMA) during the administration of former President George W. Bush. Here's more on the state of the Fed nominees from me and The Hill's Luis Sanchez.   Trump holding off on Russian sanctions: Trump has reportedly put a stop to plans to impose additional sanctions on Russia for its alleged role in a recent suspected chemical weapons attack in Syria, according to the Washington Post. The Post reported that Trump spoke with his national security advisers on Sunday after U.S. Ambassador to the United Nations Nikki Haley said on CBS's "Face the Nation" that additional sanctions were forthcoming. While additional economic sanctions were under consideration, the president had not given the approval to put them in place, the newspaper reported. Instead, the White House is in a "holding pattern," and Trump will likely levy further sanctions only if Russia is involved in another event that threatens U.S. interests. Supreme Court to hear internet sales tax case: The justices are poised to hear a landmark case tomorrow, and The Hill's Naomi Jagoda has the preview... The Supreme Court is slated to hear oral arguments Tuesday in a case about states' authority to require internet businesses to collect their sales taxes. The case, South Dakota v. Wayfair, centers around a South Dakota online sales tax law. The details: A 1992 ruling from the court prevents states from requiring remote sellers to collect their sales taxes unless the business has a physical presence in the state. But South Dakota is hoping that the Supreme Court replaces its "physical presence" standard to an "economic presence" one. The stakes: The case has attracted a great deal of interest from state and local governments, conservative groups, retailers, and elected officials. Lawmakers in both parties are divided on the online sales tax issue. The Trump administration, state and local government groups and major retail groups have all issued friend-of-the-court briefs in support of the South Dakota law. So have senators including Lamar Alexander (R-Tenn.) and Heidi Heitkamp (D-N.D.). Stakeholders supporting South Dakota argue that the physical presence standard is unfair for brick-and-mortar retailers and states. But a number of prominent conservative groups and groups representing e-commerce businesses want the Supreme Court to uphold its 1992 decision. Lawmakers including Rep. Bob Goodlatte (R-Va.) and Sen. Ron Wyden (D-Ore.) also are supporting Wayfair. Those backing Wayfair are concerned that a ruling in favor of South Dakota could lead to states' having unfettered power to tax interstate commerce. Check back at The Hill tomorrow for a recap of the oral arguments.   MARKET CHECK: Investors took comfort as fears eased of escalating U.S. involvement in Syria and after strong corporate earnings. The Dow Jones Industrial Average closed 212 points higher Monday, a 0.87 percent increase, while the Nasdaq and S&P 500 increased 0.8 percent and 0.7 percent each.   GOOD TO KNOW David Stewart, staff director for Republicans on the House Ways and Means Committee, is leaving Capitol Hill to join lobbying firm Squire Patton Boggs. Michael Froman, the former top trade official in the Obama administration, is taking a job at Mastercard where he will deploy his years of trade experience to direct the firm's global business approach. Bloomberg View explores how rising U.S. interest rates could set off a "debt bomb." Brian Knight, a senior research fellow at the libertarian-leaning Mercatus Center, writes on how banks' efforts to weigh in on the national gun control debate differ from other those of other businesses.   ODDS AND ENDS Coinbase is set to buy Earn.com, which lets users transmit digital currency for completing tasks, for $100 million. The U.S. Department of Commerce has banned American firms from selling components to the Chinese phone maker ZTE for seven years for violating sanctions.     Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com, and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @NJagoda, and @NivElis.         Did a friend forward you this email? Sign up for Finance Newsletters     Forward Finance Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.