House to Investigate DeJoy’s Possible Campaign Law Violations
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WASHINGTON — House Democrats said Sept. 8 they will investigate whether Postmaster General Louis DeJoy encouraged employees at his former business to contribute to Republican candidates and then reimbursed them in the guise of bonuses, a violation of campaign finance laws.
Five people who worked for DeJoy’s former company, New Breed Logistics, say they were urged by DeJoy’s aides or by DeJoy himself to write checks and attend fundraisers at his mansion in Greensboro, N.C., The Washington Post reported. Two former employees told the newspaper that DeJoy would later give bigger bonuses to reimburse for the contributions.
New Breed Logistics was a longtime Postal Service contractor that merged with XPO Logistics in 2014, elevating DeJoy to CEO of XPO’s supply chain business. He retired in 2015 and remained a member of XPO’s board until 2018.
XPO ranks No. 3 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 1 on the TT Top 50 list of the largest logistics companies.
It’s not illegal to encourage employees to contribute to candidates, but it is illegal to reimburse them as a way of avoiding federal campaign contribution limits.
Rep. Carolyn Maloney, who chairs the House Oversight Committee, said in a statement Sept. 8 that if the allegations are true, “DeJoy could face criminal exposure — not only for his actions in North Carolina, but also for lying to our Committee under oath.”
She was referring to DeJoy’s testimony before her committee last month, when he forcefully denied that he had repaid executives for contributing to Trump’s campaign.
Maloney, a New York Democrat, urged the Postal Service Board of Governors to immediately suspend DeJoy, whom “they never should have selected in the first place.”
Rep. Gerry Connolly, D-Va., chairman of the oversight panel’s government operations subcommittee, said DeJoy has “repeatedly broken the trust of the American people and must resign or be fired.”
Monty Hagler, a spokesperson for DeJoy, told the Post that DeJoy was unaware that any workers felt pressure to make donations. Hagler also said DeJoy believes he has always complied with campaign fundraising laws and regulations.
President Donald Trump said Sept. 7 that DeJoy, a major donor to Trump and other Republicans, should lose his job if campaign finance irregularities are uncovered.
DeJoy already faces unrelated scrutiny from Congress for U.S. Postal Service changes that some fear will slow delivery of mail-in ballots for the Nov. 3 elections.
DeJoy was put in charge of the Postal Service in June after a career in logistics and set in motion a series of policy changes that have delayed mail and sparked concern over the agency’s ability to process a flood of mail-in ballots expected this fall due to coronavirus fears.
The oversight committee recently subpoenaed DeJoy for records about widespread mail delivery delays that have pushed the Postal Service into the political spotlight.
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