Alleged Capitol rioter used nonprofit to promote violence, feds say

A suspect who was charged in connection with the Jan. 6 riot at the U.S. Capitol used his nonprofit as a platform to promote violence, federal prosecutors allege.

Alan Hostetter, 56, was one of six members of the right-wing militia group Three Percenters charged last week with conspiring to attack the Capitol.

In an indictment dated June 9, prosecutors alleged that Hostetter founded the American Phoenix Project to oppose restrictions that were implemented as part of the COVID-19 pandemic.

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But after the 2020 presidential election, Hostetter “used the American Phoenix Project as a platform to advocate for violence against certain groups and individuals that supported the 2020 presidential election results,” prosecutors wrote.

On Nov. 27, Hostetter posted a video of himself on the American Phoenix Project’s YouTube channel. In the video, he’s driving from California to attend the “Million MAGA March” in D.C. on Nov. 14, and suggests that some people needed to be executed.

“Some people at the highest levels need to be made an example [of] with an execution or two or three,” Hostetter allegedly said in part.

In another instance, Hostetter gave a speech at a “Stop the Steal” rally in Huntington Beach, Calif., that the nonprofit hosted.

During his speech, he stated in part that “the enemies and traitors of America both foreign and domestic must be held accountable. And they will. There must be long prison terms, while execution is the just punishment for the ringleaders of this coup.”

Bilal Essayli, an attorney for Hostetter, told The HIll in a brief phone interview that he felt prosecutors created a false narrative about his client. 

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He emphasized that Hostetter is not charged with any wrongdoing related to the nonprofit. 

“He’s charged with obstructing a meeting of Congress, and essentially trespassing,” Essayli said. “He’s not charged with any wrongdoing related to the nonprofit and that’s just their opinion that he was using it for promoting or promotion of violence.” 

 

According to the Internal Revenue Service, tax-exempt organizations are “absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.”

An IRS spokesperson told The Associated Press that privacy laws prevent the agency from commenting on individual organizations.

The Hill has reached out to the IRS for comment.

— Updated 5:22 p.m.

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Chinese apps could face subpoenas, bans under Biden executive order: report

Chinese apps could face subpoenas and bans under President BidenJoe BidenChinese apps could face subpoenas, bans under Biden executive order: report OVERNIGHT ENERGY:  EPA announces new clean air advisors after firing Trump appointees |  Senate confirms Biden pick for No. 2 role at Interior | Watchdog: Bureau of Land Management saw messaging failures, understaffing during pandemic Poll: Majority back blanket student loan forgiveness MORE’s new executive order to protect U.S. residents’ personal information, people familiar with the matter told Reuters.

The sources told the wire service that the order could force apps owned and made by foreign entities such as China to take tougher measures to protect sensitive information. 

The U.S. Department of Commerce could potentially issue subpoenas for software applications to collect information on how the apps protect private data, the sources said.

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The department could then ban the apps or negotiate their conditions of use for the U.S., Reuters reported.

News from Reuters comes after U.S. lawmakers and leaders have raised concerns about foreign adversaries such as China and Russia gaining access to large swaths of private information. The U.S. military banned its members from using TikTok in February 2020 over security concerns about the app’s parent company ByteDance. 

Biden signed an executive last week that halted a ban on Chinese apps such as TikTok and WeChat, changing a restriction that was enacted via executive order by former President TrumpDonald TrumpChinese apps could face subpoenas, bans under Biden executive order: report Kim says North Korea needs to be ‘prepared’ for ‘confrontation’ with US Ex-Colorado GOP chair accused of stealing more than 0K from pro-Trump PAC MORE. Trump’s bans against Chinese apps were never enacted after they were tied up in court. 

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Biden said he wanted an “evidence-based” analysis of the threat software made in foreign countries poses and the “undue or unacceptable risk to the national security” they could cause. 

According to sources who spoke with Reuters, the same apps could be under review with Biden’s order. 

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According to the wire service, Commerce Secretary Gina RaimondoGina RaimondoChinese apps could face subpoenas, bans under Biden executive order: report US, EU establish trade and technology council to compete with China On World Oceans Day, we need a sea change MORE would have the authority to decide which apps or software would warrant U.S. action, though they would have to meet certain requirements. 

For example, the apps would have to be controlled by someone with a connection to the military or intelligence of countries such as China or Russia. Should Raimondo find that a product poses a security risk, the secretary has the “discretion to notify the parties” directly or publish the information in the Federal Register, according to the news outlet. 

The companies targeted would have 30 days to respond to the action and change the way they secure personal data, according to Reuters. 

The Hill has reached out to the Department of Commerce for comment. 

Nevada Air National Guard gets first female instructor pilot

The Nevada Air National Guard has installed its first female flight instructor pilot.

Maj. Sarah Spy, a C-130 Hercules pilot for the 152nd Operations Group, finished instructor pilot school in May. She told the Las Vegas Review-Journal that “it’s kind of mind-blowing that there’s still firsts to be had in women in aviation, but I got one.”

Female representation among pilots remains stark. According to 2020 data from the Federal Aviation Administration, there’s approximately 55,000 total female pilots in the U.S. out of roughly 653,000 pilots. 

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But it’s only been since the early 1990s that Congress passed legislation for women to be able to fly in combat missions, Spy noted.

Spy said in the interview with Las Vegas Review-Journal that she always wanted to be a pilot growing up and felt an exhilaration watching planes take off as she looked outside her window. 

She said during the interview that she wants those with a passion for aviation to pursue their dreams.

“I grew up not exactly well off, so it was a little bit of a difficult journey to make it through where I was, so I just wouldn’t want anyone to give up because I’ve heard so many times, ‘I was wanting to be a pilot, but I couldn’t do this, I had this issue, I can’t afford that. I just try not to let people let those blocks get in the way so someday they’re not saying, ‘I wanted to be a pilot, but …'” Spy said. 

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The training took years for Spy to complete and included at least 4,500 flight hours and over 750 hours as a co-pilot, the Las Vegas Review-Journal reported. 

Macron slapped during appearance in small French town

French President Emmanuel MacronEmmanuel Jean-Michel Macron13 people go on trial over cyberbullying, death threats against French teen Denmark: Alleged US spying has not hurt relationships with France, Germany France to offer vaccines for those 12 and older starting later this month MORE was slapped in the face on Tuesday during an appearance in southeast France.

In videos posted online, Macron can be seen approaching a crowd of people waiting behind a partition. When he goes to shake the hand of an individual in front, the man slaps him in the face causing Macron’s security to pull the president back and rush to grab the man.

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According to The Associated Press, the incident took place in the small town of Tain-l’Hermitage. The video was taken after Macron had visited a high school where students were being trained to work in hotels and restaurants. This visit was part of Macron’s “tour de France” meant to “feel the pulse of the country.”

Two people have been detained in connection to the incident.

The AP notes that the attack against France’s head-of-state comes as many local French elected officials have faced violence, harassment and death threats in recent years. 

French Prime Minister Jean Castex said at the French National Assembly on Tuesday that “through the head of state, that’s democracy that has been targeted.” This remark elicited a round of applause from the French lawmakers, the AP reports.

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“Democracy is about debate, dialogue, confrontation of ideas, expression of legitimate disagreements, of course, but in no case it can be violence, verbal assault and even less physical assault,” Castex added.

Far-right French political leader Marine Le Pen, who Macron faced off against in the 2017 presidential elections before she conceded, condemned the attack as “intolerable physical aggression.”

“I am the first opponent to Emmanuel #Macron, but he is the president: we can fight him politically, but we cannot allow the slightest violence towards him,” Le Pen tweeted.

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Japan to possibly ease COVID-19 restrictions before Olympics

Japan is considering easing COVID-19 restrictions a little over a month before the Olympics are set to begin. 

Prime Minister Yoshihide Suga is anticipated to not reinstate the state of emergency that has been set in multiple areas of the country, including Tokyo, when it expires on Sunday, The Associated Press reported.

The state of emergency has been in place in Tokyo and other cities since April, with the declaration having been extended twice, according to the AP.

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Although coronavirus case rates are going down, many in the country are still against holding the Olympics and are concerned easing restrictions will result in a new spike in cases. 

Japan has also had a slow vaccination rollout, with only 5.6 percent of its population receiving vaccine doses so far, the AP noted. 

President BidenJoe BidenJapan to possibly ease COVID-19 restrictions before Olympics 14 Republicans vote against making Juneteenth a federal holiday China supplies millions of vaccine doses to developing nations in Asia MORE reaffirmed his support of Japan hosting the Olympics this summer with appropriate health precautions.

The Olympics were canceled last summer due to the pandemic, but many countries have begun opening up this year due to the availability of vaccines.

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The Olympics are set to start on July 23. 

Foreign fans have been forbidden from attending the games in person in order to limit the amount of travel to the country, although thousands will still come as athletes, family members, trainers and media. 

On The Money: Sanders: Democrats considering $6 trillion spending package | Weekly jobless claims rise for first time since April

Happy Thursday and welcome back to On The Money, where we’re Ushering in a new federal holiday. 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.

Write us with tips, suggestions and news: slane@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @NJagoda and @NivElis.

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THE BIG DEAL—Sanders: Democrats considering $6 trillion spending package: Senate Budget Committee Chairman Bernie SandersBernie SandersOVERNIGHT ENERGY:  EPA announces new clean air advisors after firing Trump appointees |  Senate confirms Biden pick for No. 2 role at Interior | Watchdog: Bureau of Land Management saw messaging failures, understaffing during pandemic Overnight Health Care: Takeaways on the Supreme Court’s Obamacare decision | COVID-19 cost 5.5 million years of American life | Biden administration investing billions in antiviral pills for COVID-19 Democratic senators press PhRMA over COVID-19 lobbying efforts  MORE (I-Vt.) confirmed to reporters Thursday that Senate Democrats are discussing a $6 trillion budget reconciliation proposal that would also expand Medicare and lower the cost of prescription drugs.

Sanders on Thursday said the proposal builds on President BidenJoe BidenChinese apps could face subpoenas, bans under Biden executive order: report OVERNIGHT ENERGY:  EPA announces new clean air advisors after firing Trump appointees |  Senate confirms Biden pick for No. 2 role at Interior | Watchdog: Bureau of Land Management saw messaging failures, understaffing during pandemic Poll: Majority back blanket student loan forgiveness MORE’s American Jobs Plan and American Families Plan.

“Yeah, absolutely,” Sanders said when asked whether Democrats are discussing going it alone on a proposal as big as $6 trillion.

  • “The president has given us a framework, I think it’s a comprehensive and serious framework. It is the function of the Congress now to take that framework and go with it,” Sanders told reporters.
  • Sanders said the goal of the reconciliation package would also address what he called the “housing crisis”—a sharp increase in homelessness and shortage of affordable housing exacerbated by COVID-19. 

The Hill’s Alexander Bolton has more here.

Moderates balk: It should not surprise you to find out that an ambitious multi-trillion spending package spearheaded by Bernie Sanders isn’t getting many moderates excited.

Asked whether he could support a $6 trillion reconciliation proposal of which half would be paid for, according to reports by Politico and Bloomberg, Sen. Jon TesterJonathan (Jon) TesterOn The Money: Sanders: Democrats considering trillion spending package | Weekly jobless claims rise for first time since April Sanders: Democrats considering trillion spending package Tensions grow between liberals and centrists on infrastructure MORE (D-Mont.) said flatly, “No.”

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“The way you just described it? Nothing personal but no,” he said to a reporter. “The key is, this is is like the defense budget, it’s not how much, it’s how it’s utilized that’s important,” he said.

Republicans push for more defense spending: Speaking of the defense budget, Senate Republicans negotiating spending levels for 2021 have accepted President Biden’s $1.5 trillion price tag for discretionary spending, and are now focused on allocating more of those funds toward the Pentagon.

“My goal is to get more money for defense. We live in a tough world,” Sen. Richard ShelbyRichard Craig ShelbyOn The Money: Sanders: Democrats considering trillion spending package | Weekly jobless claims rise for first time since April Shelby signals GOP can accept Biden’s .5T with more for defense Senate confirms Biden pick for No. 2 role at Interior MORE (Ala.), the top Republican on the Senate Appropriations Committee, told The Hill. 

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“The allocations will shift around, but at the end of the day, there’s going to be a struggle for national security.”

Asked if the negotiation was limited to the allocation, rather than attempting to bring down the $1.5 trillion overall spending figure, Shelby replied, “I think that’s fair.”

The Hill’s Niv Elis tells us more about the road ahead.

 

LEADING THE DAY

Yellen on the Hill, Part II: Treasury Secretary Janet YellenJanet Louise YellenOn The Money: Sanders: Democrats considering trillion spending package | Weekly jobless claims rise for first time since April End the ban on felon participation in the securities markets Watch live: Yellen testifies before House panel MORE testified before Congress on Thursday about President Biden’s budget for the second day in a row, facing questions from lawmakers on the House Ways and Means Committee on a host of topics, including unemployment benefits, inflation and Biden’s tax proposals. Here’s a breakdown from The Hill’s Naomi Jagoda:

  • Yellen said that there are “no plans” to extend the $300 per week boost to unemployment benefits that expires in September, after some congressional Democrats have also signaled that they’re willing to let the enhancement end. Yellen said that prior to the September expiration date, “states should have the flexibility to do what’s appropriate for their circumstances.” She noted that some states have high unemployment rates and may want to continue providing the enhanced benefits until they expire.
  • Yellen said she’s “very optimistic“ that there will be a broad consensus on a global minimum tax, after the countries in the Group of Seven recently endorsed a minimum tax of at least 15 percent.
  • The Treasury secretary said that the recent increase in inflation follows a period during the pandemic in which prices collapsed in certain areas, such as the hospitality sector. “Part of the high inflation we’ve seen in recent months reflects some of the same places,” she said.
  • Yellen touted Biden’s American Jobs Plan and American Families Plan, which would make investments in areas such as transportation and child care that the president proposes to pay for through tax increases on the wealthy and corporations. She said that the White House hasn’t supported a wealth tax but has proposed a “different approach” that would lead to wealthy individuals paying more in taxes on capital gains.

 

Weekly jobless claims rise for first time since April: New weekly applications for unemployment insurance rose last week for the first time since April, according to data released Thursday by the Labor Department.

  • In the week ending June 12, seasonally adjusted initial jobless claims totaled 412,000, rising by 37,000 from the previous week’s revised level of 375,000. 
  • Claims had fallen in every consecutive week since the week ending May 1 before last, setting a series of new post-lockdown record lows.
  • The number of new applications for Pandemic Unemployment Assistance also jumped by 46,722 to a total of 118,025 last week. The program, which is set to expire in September, extended jobless aid to gig workers, contractors and others who don’t qualify for traditional unemployment insurance.

What it means: Honestly, maybe not much at all. The uptick in jobless claims was a surprise after weeks of steady declines and a growing number of job openings available for unemployed workers. Even so, labor market experts said Thursday that the increase is no cause for concern.

Why? Analysts and government watchdogs have warned throughout the pandemic that backlogs and inconsistent reporting timelines among state unemployment offices have distorted the actual number of jobless claims. 

 

GOOD TO KNOW

  • The CEO of Bank of America on Thursday said the company’s “vision” is to have all vaccinated workers back in the office after Labor Day.
  • The National Republican Congressional Committee (NRCC) will begin soliciting cryptocurrency donations, it announced on Thursday, making it the first national party committee to do so.
  • Microsoft is facing new pressure from investors over its development and sale of surveillance technologies to law enforcement and its efforts to shape the policies regulating their deployment.

 

ODDS AND ENDS

  • Senate Majority Leader Charles SchumerChuck SchumerFive takeaways on the Supreme Court’s Obamacare decision Senate confirms Chris Inglis as first White House cyber czar Schumer vows to only pass infrastructure package that is ‘a strong, bold climate bill’ MORE (D-N.Y.) vowed he “will not pass” an infrastructure package that removes the climate provisions of President Biden’s American Jobs Act.
  • Coronavirus patients enduring long-term symptoms are joining a campaign to lobby Congress on passing legislation that would provide paid family leave for all workers.

Seat on Bezos-backed space flight sells for $28 million at auction

Blue Origin, the space flight company founded and owned by Jeff BezosJeffrey (Jeff) Preston BezosSeat on Bezos-backed space flight sells for million at auction Researchers: Wealth accumulation at Ivy League presents ‘fundamental threat to our democracy’ Democrats reintroduce bill to create ‘millionaires surtax’ MORE, is giving a seat on its very first human flight next month to an individual who pledged a winning bid of $28 million at an auction Saturday. 

The company announced the win on Twitter following the livestreamed auction, which lasted less than 10 minutes after opening at $4.9 million, with more than 20 bidders participating.

That came after nearly 7,600 people from 159 countries had registered to bid on a seat for the July 20 space flight by the time registration closed Thursday, according to ABC News, with pre-auction bidding ending at $4.8 million.

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Blue Origin said the $28 million would be donated to Club for the Future, Blue Origin’s 501(c)(3) nonprofit with a mission to “inspire future generations to pursue careers in STEM and to help invent the future of life in space,” according to its website.

The company said Saturday that the name of the auction winner would be released in the coming weeks, with Blue Origin’s director of astronaut and orbital sales, Ariane Cornell, saying ahead of the auction that Blue Origin would need to “complete some final paperwork with them.”

“But given the flight is just a couple of short weeks from today, you all will know very soon who the winner is,” she added.

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Blue Origin said the fourth and final crew member of the mission will also be announced when the identity of the auction winner is revealed.

Bezos announced this week that he and his brother would be flying to space in July on Blue Origin’s New Shepard rocket.

“Ever since I was five years old, I’ve dreamed of traveling to space. On July 20th, I will take that journey with my brother,” Bezos wrote in an Instagram post.

The trip is set to make Bezos the first billionaire space mogul to take a trip on technology that he himself helped fund. While Elon MuskElon Reeve MuskSeat on Bezos-backed space flight sells for million at auction Tesla begins delivery of high-performance Plaid model Democrats reintroduce bill to create ‘millionaires surtax’ MORE has highlighted recent technological advancements and tests of his SpaceX rockets, the CEO and founder has yet to indicate that he would visit space using his own spacecraft.

Last year, Blue Origin, SpaceX and Alabama-based company Dynetics were each awarded a contract by NASA to design and develop human landing systems to bring the first woman and next man to the moon.

Exclusive: Scrutiny mounts on Microsoft's surveillance technology

Microsoft is facing new pressure from investors over its development and sale of surveillance technologies to law enforcement and its efforts to shape the policies regulating their deployment.

Three separate shareholder proposals filed this week reviewed by The Hill are demanding Microsoft evaluate whether its business model aligns with the tech giant’s stated commitments to racial justice and human rights.

The first, filed by the social-issues-focused firm Harrington Investments, calls on Microsoft leadership to “generally prohibit” the sale of facial recognition technology to all government entities and disclose any exceptions made to that rule.

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Microsoft announced last summer that it would not sell the technology that scans faces for the purpose of identifying them to police departments until there is a federal law regulating its use amid renewed scrutiny during protests against police brutality.

That pledge did not make clear whether Microsoft would still sell the tech to other government agencies, like Immigration and Customs Enforcement (ICE). For example, the company repeatedly tried to sell the Drug Enforcement Administration on its tech during 2017 and 2018.

Activists and privacy advocates have raised alarm about deployment of facial recognition by law enforcement both over inaccuracies and the surveillance power it can provide.

The National Institute of Standards and Technology released a study of more than 100 vendors, including Microsoft, in 2019 that found the majority of facial recognition systems have “demographic differentials” that can worsen their accuracy based on a person’s age, gender or race.

The proposal counts the American Civil Liberties Union of Washington among its supporters. Jennifer Lee, the group’s technology and liberty project manager, said in a statement to The Hill that “if Microsoft is truly committed to protecting our democratic freedoms and standing for racial justice, it must permanently divest from selling facial recognition technology to all government entities, including law enforcement.”

The second shareholder proposal was filed by the sisters of the Religious of the Sacred Heart of Mary and calls for a holistic report on how effectively Microsoft implements its own human rights commitments.

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The proposal highlights contracts with the New York Police Department (NYPD), ICE and the military that it says may conflict with those stated ideals.

Microsoft partners with NYPD on its Domain Awareness Systems (DAS), which uses cameras, automatic license plate readers and radiological sensors to surveil New Yorkers in real time without a warrant.

Critics say the system erodes privacy and have raised concerns about the power it gives a police department with a history of racist discrimination and over-policing.

“For years, Microsoft has partnered with the NYPD to sell the [DAS], which is likely the single most invasive surveillance system in the country,” Albert Fox Cahn, executive director of the Surveillance Technology Oversight Project, said in a statement to The Hill. “Microsoft can’t claim to take the moral high ground on surveillance when it is selling the software that is used to track millions and undermine civil rights.”

ICE has tapped into DAS to fill its database of license plates that it uses to target immigrants for deportation. The proposal also highlights contracts between Microsoft’s Azure and the immigration agency for cloud computing services, which could reportedly be expanded this year.

Microsoft has faced internal pressure over its work with both police and ICE.

The final proposal, led by the Congregation of the Sisters of St. Joseph of Peace, asks Microsoft to commission a report on how its lobbying aligns with its stated principles.

The company spent nearly $10 million on federal lobbying in 2020 on a wide variety of issues such as privacy, border security and defense.

The proposal highlights support of state-level privacy bills that the investors say don’t align with Microsoft’s stated policy agenda, including the need for affirmative opt-in consent. It also points to lobbying done in opposition to legislation that would limit or ban government use of facial recognition, including one bill in Washington that would pump the brakes on the technology until demographic differentials are resolved.

Taken together, the three shareholder proposals mark a significant escalation of investor scrutiny on Microsoft’s business practices.

A spokesperson for the tech giant declined to comment on the proposals, but pointed The Hill to a video of Microsoft President Brad Smith explaining the decision to suspend facial recognition sales to police.

Microsoft could theoretically appeal to the Securities and Exchange Commission to have the proposals omitted, but if not they will come up for a vote at the company’s next shareholder meeting in December.

Activist investors have increasingly been using shareholder proposals to put pressure on companies.

Harrington Investments, for instance, has introduced a similar proposal about facial recognition at Amazon for the last three years.

And earlier this month investors at Thomson Reuters voted on a proposal to evaluate its contracts with ICE.

While these types of proposals have relatively low success rates  and are often nonbinding — their proponents say they offer an effective avenue to show companies the business risks of controversial contracts.

Mary Beth Gallagher, the executive director at Investor Advocates for Social Justice who helped the two religious organizations file their proposals, said that the strategy is moving companies in the right direction.

“Investors and other stakeholders don’t want companies making empty promises, statements [and] commitments,” she told The Hill. “These proposals and all the work civil society actors are doing I think are pushing toward more corporate accountability.”

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Blinken dismisses reports of G-7 divisions over China

Secretary of State Antony BlinkenAntony BlinkenSunday shows preview: Biden foreign policy in focus as Dem tensions boil up back home Concerns grow over China’s Taiwan plans Biden should remind Erdogan of NATO’s basic tenets and values MORE on Sunday pushed back against reports of tension among G-7 leaders over China.

“What we have is largely agreement on the need to offer a much more attractive alternative to the model that China is proposing for the world.” Blinken said on ABC’s “This Week.” “And the communique coming out of this summit is going to reflect that.”

Blinken, who is traveling with President BidenJoe BidenEx-Biden adviser says Birx told him she hoped election turned out ‘a certain way’ Cheney rips Arizona election audit: ‘It is an effort to subvert democracy’ News leaders deal with the post-Trump era MORE, also noted that China was not mentioned during the last G-7 summit in 2018.

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“But here we have a commitment to work together on something called ‘Build Back Better’ for the world to work on pooling of investments, pooling funds, bringing the private sector into make investments in health and infrastructure, in technology for low- and middle-income countries in a way that will produce new markets for all products and also a much more attractive alternative to what China is trying to do in these countries,” he said.

Blinken added that the G-7 summit, which concludes on Sunday, may be “the most consequential one I’ve ever taken part in.”

“This is one that actually demonstrated that democracies coming together can deliver in concrete ways for their people and for people around the world.”

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Biden and some G-7 allies have pushed for a tougher approach to Beijing, but have reportedly faced resistance from German Chancellor Angela Merkel, French President Emmanuel MacronEmmanuel Jean-Michel MacronSunday shows preview: Biden foreign policy in focus as Dem tensions boil up back home Biden has convinced allies ‘America is back,’ says France’s Macron Socially-distanced ‘action figure’ photo of G7 leaders goes viral MORE and others who are reluctant to take an aggressive approach and prefer seeking out areas of economic cooperation with China.

In a shot at China, G-7 leaders on Sunday announced their commitment to cutting forced labor practices out of global supply chains.

“The United States and our G7 partners remain deeply concerned by the use of all forms of forced labor in global supply chains, including state-sponsored forced labor of vulnerable groups and minorities and supply chains of the agricultural, solar, and garment sectors — the main supply chains of concern in Xinjiang,” the White House said in a release ahead of a G-7 communique, referencing a Chinese territory where Beijing’s treatment of the minority population has been described as a genocide.

“Leaders agreed on the importance of upholding human rights and of international labor standards, and committed to protect individuals from forced labor,” the White House statement added.

–Brett Samuels contributed to this report.

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Hillicon Valley: Biden, Putin agree to begin work on addressing cybersecurity concerns | Senate panel unanimously advances key Biden cyber nominees | Rick Scott threatens to delay national security nominees until Biden visits border

Welcome to Hillicon Valley, The Hill’s newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley. If you don’t already, be sure to sign up for our newsletter by clicking HERE.

Welcome, and Happy Wednesday! Follow our cyber reporter, Maggie Miller (@magmill95), and tech team, Chris Mills Rodrigo (@chrisismills) and Rebecca Klar (@rebeccaklar_), for more coverage.

President BidenJoe BidenJapan to possibly ease COVID-19 restrictions before Olympics 14 Republicans vote against making Juneteenth a federal holiday China supplies millions of vaccine doses to developing nations in Asia MORE and Russian President Vladimir PutinVladimir Vladimirovich PutinCyber concerns dominate Biden-Putin summit Overnight Defense: Biden, Putin agree to launch arms control talks at summit | 2002 war authorization repeal will get Senate vote | GOP rep warns Biden ‘blood with be on his hands’ without Afghan interpreter evacuation Hillicon Valley: Biden, Putin agree to begin work on addressing cybersecurity concerns | Senate panel unanimously advances key Biden cyber nominees | Rick Scott threatens to delay national security nominees until Biden visits border MORE met face-to-face in Geneva, the first in-person interaction between the leaders since Biden took office. Cybersecurity was at the top of the agenda after a bumpy few months of escalating Russian-linked attacks on the U.S.

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Back on Capitol Hill, two top cyber nominations that are expected to sail through the Senate were approved in committee Wednesday, but faced a speedbump from Sen. Rick Scott (R-Fla.), who placed a hold on voting on the nominees until Biden visits the U.S.-Mexico border. 

Looking ahead, the bipartisan antitrust agenda introduced by leaders of the House Judiciary antitrust subcommittee will be brought to a full committee markup next week. We’ll be keeping an eye on the opposition from prominent Republicans, including from Judiciary Committee Ranking Member Jim JordanJames (Jim) Daniel JordanHillicon Valley: Biden, Putin agree to begin work on addressing cybersecurity concerns | Senate panel unanimously advances key Biden cyber nominees | Rick Scott threatens to delay national security nominees until Biden visits border Trump, allies pressured DOJ to back election claims, documents show The tale of the last bipartisan unicorns MORE (Ohio). 

SHOWDOWN IN SWITZERLAND: President Biden and Russian President Vladimir Putin on Wednesday said they agreed to work together to outline what cybersecurity concerns, such as ransomware attacks on critical infrastructure, would be considered red lines for the two countries.

“We spent a great deal of time on cyber and cybersecurity, I talked about the proposition that certain critical infrastructure should be off limits to attack, period, by cyber or any other means,” Biden told reporters in Geneva, Switzerland, after his meeting with the Russian leader. 

Biden noted that he had given Putin a list of 16 “specific entities,” such as the energy sector and water systems, that the U.S. views as critical infrastructure.

“Principle is one thing, it has to be backed up by practice, responsible countries need to take action against criminals who conduct ransomware activities on their territory,” Biden said. “So, we agreed to task experts of both our countries to work on specific understandings about what’s off limits and follow up on specific cases that originate in other countries, in either of our countries.”

Putin also discussed the understanding the two nations had come to on cybersecurity concerns, telling reporters during an earlier press conference that Russia would “begin consultations in this respect.”

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Read more about the summit here.

APPROVED: The Senate Homeland Security and Governmental Affairs Committee on Wednesday unanimously approved two of President Biden‘s nominees to serve in the nation’s top cybersecurity positions.

The committee approved former National Security Agency (NSA) Deputy Director Chris Inglis to serve in the newly created national cyber director role at the White House, and approved former NSA official Jen Easterly to serve as director of the Cybersecurity and Infrastructure Security Agency (CISA).

Read more about the nominations here.

…BUT THERE’S A CATCH: Sen. Rick Scott (R-Fla.) threatened Wednesday to delay Biden’s national security nominees, saying he would place a hold on Department of Homeland Security (DHS) positions until the president visits the southern border.

Scott’s comments came as he noted his support for forwarding Biden’s nominee to lead CISA.

“I clearly support Jen Easterly to be the director of CISA — she’s got the right background to be able to do the job. It has no reflection on her nomination, but I am going to hold all nominations including hers until the president visits the border, and I think the president needs to visit the border and tell us how he is going to address the crisis,” he said in the Senate Homeland Security and Governmental Affairs Committee meeting where the nominees were approved. 

Read more about the block here.

EVERYONE’S A CRITIC: Tech companies that publicly promote their privacy practices are coming under scrutiny for handing over metadata on lawmakers, congressional staffers, journalists and even a minor in response to subpoenas from the Trump administration’s Justice Department.

The involvement of tech giants like Apple, Google and Microsoft is shining a spotlight on Silicon Valley’s relationship with Washington and raising questions about whether those companies should have fought the subpoenas to protect user privacy.

“It puts [the companies] in a bad situation, because many of them are claiming they work hard to protect personal privacy, but they’re having to turn information over to government officials. So that’s not the place where they want to be,” said Darrell West, a senior fellow at the Brookings Institution’s Center for Technology Innovation.

The revelations about subpoenas for lawmakers’ data has put the tech companies in a tough spot. From a legal perspective, they have few tools to challenge the government requests that clash with their brand reputations, particularly for a company like Apple.

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UNIONIZED: Workers at Catalist, a data firm that works with progressive causes, have formed a union that was voluntarily recognized by management Wednesday.

Thirty of the company’s 38 eligible employees have joined the Catalist Union and will be represented by the Communications Workers of America, which has made significant inroads into the tech industry recently.

The company’s decision to voluntarily recognize the union means there will be no formal election and that negotiations over a collective bargaining agreement will begin soon.

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INDIA ACCUSES TWITTER: India’s technology minister Wednesday accused Twitter of deliberately not complying with the country’s new IT rules.

“It is astounding that Twitter which portrays itself as the flag bearer of free speech, chooses the path of deliberate defiance when it comes to the Intermediary Guidelines,” Technology Minister Ravi Shankar Prasad tweeted. 

“If any foreign entity believes that they can portray itself as the flag bearer of free speech in India to excuse itself from complying with the law of the land, such attempts are misplaced.” 

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ON TAP TOMORROW:

-A Senate Homeland Security and Governmental Affairs Committee subcommittee will hold a hearing on state and local cybersecurity featuring officials from across the country. State and local governments have been major targets of cyber criminals during the pandemic.

-On the other side of Capitol Hill, Homeland Security Secretary Alejandro MayorkasAlejandro MayorkasDeSantis: Florida officers to respond to ‘border security crisis’ in Texas, Arizona Hillicon Valley: Biden, Putin agree to begin work on addressing cybersecurity concerns | Senate panel unanimously advances key Biden cyber nominees | Rick Scott threatens to delay national security nominees until Biden visits border Biden expanding program for allowing young Central Americans into US MORE will testify before the House Homeland Security Committee on his agency’s annual budget proposal, which will likely feature debate on how much to funnel to cyber and tech priorities over the next year. 

 

Lighter click: not well

An op-ed to chew on: Biden’s cyber budget good, but still insufficient to meet the threats

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NOTABLE LINKS FROM AROUND THE WEB:  

Why Bo Burnham, Jenna Marbles, And Shane Dawson All Logged Off (BuzzFeed / Scaachi Koul) 

DuckDuckGo’s Quest to Prove Online Privacy Is Possible (Wired / Gilad Edelman) 

The Amazon That Customers Don’t See (The New York Times / Jodi Kantor, Karen Weise and Grace Ashford)