Oath Keeper pleads guilty to Capitol riot charges

A member of the Oath Keepers pleaded guilty on Wednesday to charges stemming from the riot at the Capitol, making him the first defendant in federal prosecutors’ biggest case since Jan. 6 to enter a plea agreement.

A federal district court judge in Washington, D.C., had abruptly scheduled a plea agreement hearing for Graydon Young, one of 16 co-defendants affiliated with the Oath Keepers who have been charged with conspiracy and other crimes over their roles in allegedly plotting and carrying out the Capitol attack.

The 54-year-old Florida resident said during the hearing that he had agreed to cooperate with prosecutors and potentially testify during a later trial or before a grand jury.

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Young pleaded guilty to one count each of conspiracy and obstruction of an official proceeding, avoiding four other counts with which he had initially been charged.

Judge Amit Mehta advised Young during the hearing that the agreement could mean that he ends up receiving a sentence of up to 6.5 years in prison, though prosecutors could ask for a more lenient sentence after assessing the level of his cooperation.

Prosecutors alleged that Young and others moved throughout the mayhem Jan. 6 in a military-style “stack” formation clad in fatigues and combat gear.

They had also alleged that Young had helped recruit for the trip to D.C. and financed others’ travel costs, but said that they don’t believe he played a leadership role in the group.

Young had also been charged with one count of evidence tampering for deleting his Facebook account after the riot.

Updated at 2:30 p.m.

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Hillicon Valley: Cyber agency says SolarWinds hack could have been deterred | Civil rights groups urge lawmakers to crack down on Amazon's 'dangerous' worker surveillance | Manchin-led committee puts forth sprawling energy infrastructure proposal

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 haven’t already, be sure to sign up for our newsletter by clicking HERE.

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

The key federal cybersecurity agency acknowledged the massive SolarWinds hack, which led to the compromise of nine federal agencies by Russian hackers, might have been deterred if a basic security measure had been put in place. The breach is considered one of the largest in U.S. history, and chilled relations between the U.S. and Russia even further.

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Meanwhile, as Amazon rolls out its two-day Prime Day sale, civil rights groups called on lawmakers to crack down on Amazon’s workplace policies and the Senate Energy and Natural Resources Committee rolled out a major energy legislative proposal that includes language on securing critical infrastructure increasingly at risk of attack. 

SOLARWINDS UPDATE: The SolarWinds hack, one of the largest cybersecurity incidents in U.S. history, may have been deterred or minimized if basic security measures had been put in place, a top government official acknowledged earlier this month.

In a June 3 letter to Sen. Ron WydenRonald (Ron) Lee WydenOvernight Health Care: White House acknowledges it will fall short of July 4 vaccine goal | Fauci warns of ‘localized surges’ in areas with low vaccination rates | Senate Finance leader releases principles for lowering prescription drug prices Equilibrium — Presented by NextEra Energy — Flaming shipwreck wreaks havoc on annual sea turtle migration Senate Finance chair releases principles for lowering prescription drug prices MORE (D-Ore.) provided to The Hill on Monday, Cybersecurity and Infrastructure Security Agency (CISA) acting Director Brandon Wales agreed with Wyden’s question over whether firewalls placed in victim agency systems could have helped block the malware virus used in the SolarWinds attack. 

“CISA agrees that a firewall blocking all outgoing connections to the internet would have neutralized the malware,” Wales wrote.

He stressed, however, that while the agency “did observe victim networks with this configuration that successfully blocked connection attempts and had no follow-on exploitation, the effectiveness of this preventative measure is not applicable to all types of intrusions and may not be feasible given operational requirements for some agencies.”

The response comes six months after the SolarWinds hack was discovered in December after it was ongoing for most of last year. The hack, which U.S. intelligence agencies assessed earlier this year was likely backed by the Russian government, led to the compromise of nine federal agencies and around 100 private sector organizations.

Read more here. 

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PRIME DAY PROTESTS: Civil rights groups are calling on lawmakers and regulators to crack down on Amazon over its system of monitoring workers’ pace. 

More than 35 civil rights organizations signed a letter Monday urging action. The letter was released the same day of Amazon’s two-day Prime Day sale, which activists have criticized, arguing it increases pressure on workers. 

“It is time for lawmakers and regulators to step-in and end the punitive system of constant surveillance that drives the dangerous pace of work at Amazon,” the groups wrote, according to a copy of the letter shared with The Hill. 

The letter specifically calls for state and federal officials to enact laws that ban surveillance-driven discipline and control to ensure workers are protected from “abusive conditions.” 

Read more here

ENERGY PROPOSAL IN THE PIPELINE: A Senate committee that’s led by key swing vote Sen. Joe ManchinJoe ManchinSchumer vows next steps after ‘ridiculous,’ ‘awful’ GOP election bill filibuster Biden says push to advance elections overhaul ‘far from over’ Pelosi quashes reports on Jan. 6 select committee MORE (D-W.Va.) has released a 400-page energy infrastructure proposal that it will weigh later this week. 

The proposal, which is labeled a discussion draft, did not receive much fanfare on Friday as it was quietly included as part of an advisory announcing a hearing on infrastructure needs by the Senate Energy and Natural Resources Committee.

Included in the proposal are two bipartisan bills approved earlier this month by the House Energy and Commerce Committee intended to enhance the cybersecurity of critical energy resources. 

The Cyber Sense Act would require the Department of Energy, in coordination with other agencies, to establish a program to test the cybersecurity of products used in the bulk power system.

The Enhancing Grid Security Through Public-Private Partnerships Act would direct the Department of Energy to create a program encouraging partnership with the private sector to shore up both physical and cybersecurity of the grid. 

Read more about the proposal here. 

LIVE AUDIO LAUNCH: Facebook is launching podcasts and live audio stream features in the U.S. as it expands to add more social audio experiences, the company said Monday. 

Facebook’s Live Audio Rooms will be available for public figures and select Facebook Groups in the U.S., with plans to expand the ability for more public figures and groups to host rooms in coming weeks, according to Facebook’s blog post

The launch comes a couple of months after Facebook said it would test the Live Audio Rooms feature, following the rising popularity of the social media platform Clubhouse. Other tech companies, including Twitter and Spotify, have also announced features to rival Clubhouse. 

Read more here

ICYMI: ANTITRUST BILLS DIVIDE GOP: House Republicans are publicly sparring over several high-profile antitrust bills that have bipartisan support, signaling a bumpy road ahead for the legislation.

The House Judiciary Committee on Wednesday is slated to vote on five bipartisan measures targeting Big Tech, but the panel’s top Republican, Rep. Jim JordanJames (Jim) Daniel JordanPowell says pickup in job gains likely this fall Tech industry pushes for delay in antitrust legislation The antitrust package is a Trojan horse conservatives must reject MORE (Ohio) and Minority Leader Kevin McCarthyKevin McCarthyTrump has ‘zero desire’ to be Speaker, spokesman says Hillicon Valley: Cyber agency says SolarWinds hack could have been deterred | Civil rights groups urge lawmakers to crack down on Amazon’s ‘dangerous’ worker surveillance | Manchin-led committee puts forth sprawling energy infrastructure proposal Chuck Todd reluctant to ‘ban’ election deniers from ‘Meet the Press’ MORE (Calif.) are bashing the bills as a Democratic-led partisan power grab.

“Democrat impeachment managers don’t care about conservative censorship. Their next big mission? Empower Big Tech and Big Government to make it worse,” Jordan tweeted Wednesday, after lawmakers in both parties touted the legislative package.

That drew a swift rebuke on Twitter from Rep. Ken BuckKenneth (Ken) Robert BuckTech industry pushes for delay in antitrust legislation Hillicon Valley: Cyber agency says SolarWinds hack could have been deterred | Civil rights groups urge lawmakers to crack down on Amazon’s ‘dangerous’ worker surveillance | Manchin-led committee puts forth sprawling energy infrastructure proposal GOP divided over bills targeting tech giants MORE (R-Colo.), the ranking member on the antitrust subcommittee who is cosponsoring the bills.

“Using antitrust laws to stop Big Tech’s bad behavior isn’t Big Government, it’s law enforcement,” Buck said.

While the Republican infighting is unlikely to prevent the bills from advancing in the House, the GOP division could have bigger ramifications in the 50-50 Senate, where at least 60 votes are needed to advance most legislation.

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Read more here

On tap this week:

-A Senate Commerce Committee subcommittee will hold a hearing Tuesday on building resilient and secure telecommunications networks. 

-The House Judiciary Committee will markup bipartisan antitrust legislation during a meeting Wednesday.

-Senior officials from the Department of Defense will testify about the recent string of ransomware attacks during a Senate Armed Services Committee hearing on Wednesday. 

-FBI Director Christopher Wray will testify Wednesday to the Senate Appropriations Committee on the FBI’s proposed fiscal year 2022 budget, which could involve discussion of cyber and tech priorities. 

Lighter click: See you in Tokyo

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An op-ed to chew on: Securing military command, control, and communications requires focus, follow through

NOTABLE LINKS FROM AROUND THE WEB: 

Google executives see cracks in their company’s success (The New York Times / Daisuke Wakabayashi)

Smart thermostats are turning down air conditioners during heatwave (Vice Motherboard / Audrey Carleton)

U.S. SEC probing SolarWinds clients over cyber breach disclosures–sources (Reuters / Katanga Johnson)

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Service cuts on five NYC subway lines extended through late 2022

The Metropolitan Transportation Authority (MTA) is expected to extend service cuts on five New York City subway lines until late 2022, the New York Daily News reported on Monday.

The service cuts will affect weekday evening service on the B, D, N, Q and R lines. D and N trains will run local instead of express in Brooklyn beneath Fourth Avenue, and the frequency of N, R, and Q trains will be reduced.

MTA spokesman Aaron Donovan told The Hill that those trains are needed for construction work in the city, including upgrades to various stations. 

The extended service cuts come as the MTA is struggling to gain back past riders. Daily ridership is down 60 percent from where it was before the COVID-19 pandemic, according to the Daily News. 

The MTA board is set to approve the new measure on Wednesday.

California grid operator calls on residents to conserve electricity amid heat wave

The California Independent System Operator (CAISO) is asking residents to conserve electricity amid a heat wave that is affecting much of the Western U.S. 

“The California Independent System Operator (ISO), with extreme heat forecast for much of California and the Southwest, has issued a statewide Flex Alert to encourage electricity conservation tomorrow from 5 p.m. to 10 p.m. to reduce stress on the grid and avoid power outages,” CAISO announced Wednesday.

Between those times, residents the operator has asked residents to turn their thermostats to 78 degrees, turn off unnecessary lights, not to use major appliances, unplug unused appliances and use fans to cool off. 

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CAISO also encouraged residents to prepare for this conservation effort by charging electronic appliances, pre-cooling their homes and using major appliances. 

Should an insufficient number of residents fail to conserve energy, CAISO said that the strain on the power grid would be too great. The operator would tell utility companies to rotate power outages.

California Gov. Gavin NewsomGavin NewsomCalifornia grid operator calls on residents to conserve electricity amid heat wave California hydroelectric plant expected to shut down for the first time in 50 years Beyond California, a record year for recalls MORE (D) issued an emergency proclamation Tuesday to free up more energy capacity to help the grid. 

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The proclamation suspends certain permitting requirements, allowing the use of back-up power generation and freeing up additional energy capacity to help alleviate the heat-induced demands on the state’s energy grid,” the press release states.

The National Weather Service said the weather experienced in the West will be a “dangerous” and “record-breaking” heat wave. The harsh weather has California, Nevada, Arizona and Utah under heat advisories.

Senate panel plans July briefing on war authorization repeal

The Senate Foreign Relations Committee will hold a briefing in July on repealing the 2002 authorization for the Iraq War, its chairman said Tuesday.

The announcement from Chairman Bob MenendezRobert (Bob) MenendezSchumer says Senate will vote on repealing 2002 war authorization The Hill’s Morning Report – Biden-Putin meeting to dominate the week Sanders drops bid to block Biden’s Israel arms sale MORE (D-N.J.) comes after a group of Republicans on the committee asked him to delay consideration of a bill to repeal the 2002 and 1991 authorizations for the use of military force (AUMF) until administration officials appear before the committee.

“The administration has already issued a formal statement of administration policy, or SAP, supporting repeal of the 2002 AUMF,” Menendez said Tuesday at a committee business meeting. “Nonetheless, I am planning a member’s briefing for the beginning of the July work period, so we will all have an opportunity to hear directly from the administration and to question State and Defense Department officials concerning the proposed repeal.”

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Menendez also said he and his staff would “facilitate discussions with the administration” for interested members.

The committee had originally been scheduled to consider a bill Tuesday from Sens. Tim Kaine (D-Va.) and Todd Young (R-Ind.) that would repeal both the 2002 AUMF for the Iraq War and the 1991 AUMF for the Gulf War.

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But on Monday, five Republicans on the committee sent a letter to Menendez asking him to delay the vote until the panel holds a public hearing and classified briefing with administration officials.

In the letter, the Republicans argued there are “weighty questions” associated with repealing the 2002 AUMF that need answers.

“We believe it is critical that every member of this committee fully understand the scope and use of existing legal authorities, the current threats to the U.S. and its allies and partners, and the implications for our national security and foreign policy,” GOP Sens. Mitt Romney (Utah), Mike Rounds (S.D.), Marco Rubio (Fla.), Ron Johnson (Wis.) and Bill Hagerty (Tenn.) wrote in the letter.

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On Tuesday, Sen. Jim RischJim Elroy RischSenate panel plans July briefing on war authorization repeal Iran’s presidential election puts new pressure on US nuclear talks GOP lawmakers urge Biden to add sanctions on Russia over Navalny poisoning MORE (R-Idaho), the ranking member of the committee, said he also supported their request.

“I’m further concerned about the message that this repeal could send to the region,” Risch said at Tuesday’s meeting. “Indeed, I think that’s the most important thing that we’re doing when it comes to the 2002 AUMF because both sides agree that the existence of the AUMF probably doesn’t make that much difference when it comes to making a decision as to whether or not to use military force under certain circumstances.”

The Biden administration has come out in support of scrapping the 2002 AUMF, with the White House saying in a statement last week that it backs repeal because “the United States has no ongoing military activities that rely solely on the 2002 AUMF as a domestic legal basis, and repeal of the 2002 AUMF would likely have minimal impact on current military operations.”

But opponents of repealing the 2002 measure argue doing so could hamstring U.S. counterterrorism missions, saying it should not be repealed until a replacement for a separate 2001 AUMF is agreed to.

While the 2002 authorization has occasionally been cited to bolster legal arguments in the fight against ISIS, it has been secondary to the 2001 one, which was passed in the wake of the 9/11 attacks to authorize the war in Afghanistan and war on terror.

Proponents of repealing the 2002 AUMF, as well as the 1991 one, argue the authorizations long ago served their purposes and that keeping them on the books leaves them prone to abuse by the executive branch.

They also see repealing those measures as a first step in a broader effort to claw back presidential war powers, including replacing the 2001 AUMF with a narrower authorization.

The House voted last week to repeal the 2002 AUMF, and Senate Majority Leader Charles Schumer (D-N.Y.) vowed to hold a vote in his chamber this year.

Fed chief brushes off fears of extended inflation

Federal Reserve Chairman Jerome Powell said Wednesday that the U.S. is on track for a strong rebound from the coronavirus pandemic even as the economy hits inflationary speed bumps on the path to full recovery.

Powell spoke to reporters after the Federal Open Market Committee (FOMC) — the Fed’s monetary policymaking arm — announced that it would hold its baseline interest rate range steady at 0 to 0.25 percent and continue to purchase $120 billion in Treasury and mortgage bonds each month.

During the press conference, Powell brushed off fears that the recent inflation surge would force the Fed to slam on the brakes with an interest rate hike sooner than expected. The Fed chief said that while price increases could continue to heat up, the unrepaired damage to the U.S. economy from a year of COVID-19 lockdowns made a dangerous inflation spiral unlikely.

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“If we see inflation expectations or inflation moving up in a way that is really materially above what we would see as consistent with our goals and persistently so, we wouldn’t hesitate to use our tools to address that,” Powell said.

“We do not expect that, though. That is not our base case and in that we’re joined by many other forecasters,” he added.

The Fed has committed to pumping steady monetary stimulus for the U.S. economy through the end of the year as the country digs out from the hole created by the pandemic.

The debate over inflation comes as 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 most congressional Democrats are looking to spend big on an infrastructure package, prompting opposition from Republicans, who argue that more stimulus will only drive prices higher.

While Fed officials upgraded their projections of annual economic growth and inflation on Wednesday, Powell said the U.S. is not ready for the bank to pull back support.

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“There is still a big group of unemployed people and we’re not going to forget about them,” Powell said.

“We’re going to do everything we can to get people back into work and give them the chance to work. But there’s every reason to think that we’ll be in a labor market with very attractive numbers, with low unemployment, high participation and rising wages across the spectrum.”

The U.S. is still down more than 7 million jobs from February 2020. Millions of Americans have still been unable to return to the workforce due to pandemic-related constraints, and many are fearful of returning to work with roughly 50 percent of U.S. adults not vaccinated against COVID-19.

Even so, higher than expected increases in several annual measures of inflation have deepened concerns among Republican lawmakers and fiscal hawks about the combination of monetary and fiscal stimulus.

“Isn’t it incumbent upon the president, the U.S. secretary of Treasury, and even us in the Congress to take inflationary risk seriously by pursuing responsible fiscal policies, not just expecting the Fed to clean up a mess after the fact?” asked Sen. Chuck GrassleyChuck GrassleyOn The Money: Yellen, Powell brush off inflation fears | Fed keeps rates steady, upgrades growth projections Overnight Health Care: US buying additional 200M Moderna vaccine doses | CureVac’s COVID-19 vaccine failed in preliminary trial results | Grassley meets with House Dems on drug prices Grassley meets with moderate House Democrats on lowering drug prices MORE (R-Iowa) of Treasury Secretary Janet YellenJanet Louise YellenOn The Money: Yellen, Powell brush off inflation fears | Fed keeps rates steady, upgrades growth projections Fed chief brushes off fears of extended inflation Yellen confident rising inflation won’t be ‘permanent’ MORE during a Wednesday hearing before the Senate Finance Committee.

Both Powell, a Republican, and Yellen, a Democrat who preceded him as Fed chair, say annual measures of inflation are only at decade-plus highs because of short-term kinks in the recovery. Many economists across the ideological spectrum share their view, though remain uncertain as to when exactly inflation will begin to cool.

“Partly what we’re seeing is that prices, they just collapsed at the onset of the pandemic in the service sector,” Yellen said Wednesday morning.

“As the economy’s opening back up again, prices are now moving back towards normal levels in leisure, hospitality, airfares and the like. In most cases, prices remain below pre-pandemic levels.”

Powell, speaking to reporters hours later, echoed Yellen and added that inflation was also rising because of temporary supply bottlenecks. He cited lumber prices, which shattered record highs in April and May before nose-diving this month and suggested the same would soon happen to rental car prices.

“The timing of that is pretty uncertain and so are the effects in the near term, but over time it seems likely that these very specific things that are driving up inflation will be temporary,” Powell said.

Powell went on to say it was important to stay “humble” as the U.S. recovers from an unprecedented shutdown and continues to struggle through pandemic-related constraints. The U.S. has added an average of 540,000 jobs over the past three months, a solid pace but well below the 1 million-plus monthly gains many economists anticipated over the summer.

Powell attributed the hiring struggles to concerns about returning to public-facing work, a lack of school and child care options for parents and expanded federal unemployment benefits. He added, however, that all three would fade into the year as vaccinations picked up, enhanced jobless aid lapsed and schools fully reopened.

“It’s just a unique situation, and we need to see how things evolve in the coming months,” he said.

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Supreme Court upholds ObamaCare in 7-2 ruling

The Supreme Court on Thursday upheld ObamaCare against the latest Republican challenge, preserving the landmark law and its key protections for millions of people with preexisting health conditions.

The justices ruled 7-2 that the GOP challengers lacked standing to sue.

The case arose after 18 Republican states brought a legal challenge in 2018 aimed at striking down the Affordable Care Act (ACA).

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Led by Texas, the GOP challengers focused on the ObamaCare tax penalty meant to induce the purchase of health insurance by most Americans. They argued that President TrumpDonald TrumpNorth Carolina Senate passes trio of election measures 14 Republicans vote against making Juneteenth a federal holiday Border state governors rebel against Biden’s immigration chaos MORE’s 2017 tax cut, which zeroed out the penalty, made that provision unconstitutional.

Without the tax penalty, they argued, ObamaCare effectively lost its constitutional footing, requiring its invalidation by the court.

But the justices did not even address those issues in their decision.

“We do not reach these questions of the Act’s validity, however, for Texas and the other plaintiffs in this suit lack the standing necessary to raise them,” Justice Stephen BreyerStephen BreyerThe Hill’s Morning Report – Biden on Putin: ‘a worthy adversary’ McConnell sparks new Supreme Court fight Senate confirms Garland’s successor to appeals court MORE wrote for the majority.

Breyer was joined by fellow liberal justices Elena KaganElena KaganSupreme Court confounding its partisan critics Gorsuch, Thomas join liberal justices in siding with criminal defendant The Hill’s Morning Report – Presented by Facebook – Democrats’ agenda in limbo as Senate returns MORE and Sonia SotomayorSonia SotomayorSupreme Court unanimously rules certain crack offenders not eligible for resentencing Supreme Court confounding its partisan critics Gorsuch, Thomas join liberal justices in siding with criminal defendant MORE, as well as four of the court’s more conservative members: Chief Justice John Roberts, as well as Justices Clarence ThomasClarence ThomasMcConnell sparks new Supreme Court fight Supreme Court unanimously rules certain crack offenders not eligible for resentencing Supreme Court confounding its partisan critics MORE, Brett KavanaughBrett Michael KavanaughThe ACLU’s civil war over old values: Free speech only for the woke? McConnell sparks new Supreme Court fight Supreme Court confounding its partisan critics MORE and Amy Coney BarrettAmy Coney BarrettThe Hill’s Morning Report – Biden on Putin: ‘a worthy adversary’ McConnell sparks new Supreme Court fight McConnell signals GOP would block Biden Supreme Court pick in ’24 MORE.

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Two of the court’s staunchest conservatives, Justices Samuel AlitoSamuel AlitoMcConnell sparks new Supreme Court fight Gorsuch, Thomas join liberal justices in siding with criminal defendant Supreme Court narrows cybercrime law MORE and Neil GorsuchNeil GorsuchSupreme Court confounding its partisan critics Gorsuch, Thomas join liberal justices in siding with criminal defendant Supreme Court justice denies Colorado churches’ challenge to lockdown authority MORE, wrote in dissent.

The lower courts had largely sided with the Republican states but agreed to delay enforcement of the ruling while appeals played out. ObamaCare’s defenders, comprising a coalition of 20 blue states and the Democratic-led House, appealed to the Supreme Court.

The Justice Department under Trump backed the GOP states in urging the justices to strike down the law. But the Biden administration reversed course.

ObamaCare is credited with expanding Medicaid for poorer Americans and making private health plans more affordable for lower-income families. Health experts say the law has provided a crucial backstop for those who have lost job-based coverage during the pandemic.

–Updated at 10:14 a.m.

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US Cyber Command leads competition in effort to strengthen nation's cybersecurity

Cyber professionals from the U.S. and multiple other countries are in the midst of an annual competition led by U.S. Cyber Command meant to enhance the nation’s cybersecurity in wake of months of devastating attacks. 

The annual Cyber Flag competition this year brought together 430 cyber professionals on 17 teams representing U.S. Cyber Command and other Defense Department agencies, the House of Representatives, the National Guard, and the U.S. Postal Service. It also incorporates teams from the United Kingdom and Canada.

Each year, the teams are presented with a scenario involving a major cyber incident, with this year’s scenario involving an attack by two adversaries on a logistics support depot. The competition runs through Friday and is operating across eight time zones, with teams competing to win. 

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“Think of these like a compound, like a Bin Laden compound, where they go and they rehearse and they rehearse and they rehearse, and they get to see this network in a place where they can do the live target practice, do the live cyber defense that they need to stay sharp,” U.S. Navy Lt. Commander Gabe Edwards, the Cyber Flag exercise lead, told reporters Wednesday. 

The exercise is the Department of Defense’s largest annual cyber training exercise, and this year utilized a virtual training platform to allow teams to compete from their home bases. As a result, the exercise was five times larger than in previous years. 

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The competition is being held in the wake of months of escalating cyberattacks, including ransomware attacks on Colonial Pipeline, which provides 45 percent of the East Coast’s gas, and on JBS USA, the nation’s largest provider of beef. 

Additionally, the SolarWinds hack allowed Russian-government-backed hackers to compromise nine government agencies for most of last year, and new vulnerabilities in Microsoft’s Exchange Server discovered in March potentially compromised thousands of organizations. 

Edwards said that a ransomware attack like the one on Colonial was a potential part of the exercise this year. 

“We’re having the teams experience the same scenario, but they can carry error forward through the exercise, so based on the actions they take, they continue engineering their environments in ways that structure the scenario from there on, it’s kind of a choose your own adventure type of an exercise,” Edwards said. “This year we have used a ransomware payload to inject into the scenario if it progresses to that.”

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Edwards noted that future Cyber Flag exercises would incorporate a wide range of threats in an effort to think outside the box on potential threats. 

“You name it, we’ll model it,” he said. 

U.S. Coast Guard Rear Admiral Christopher Bartz, chief of Exercises and Training at U.S. Cyber Command, told reporters Tuesday that Cyber Flag was essential in light of the attacks. 

“It hit home this spring, I think every American was starting to understand really what the capabilities of adversaries, both state and non-state are, so it’s important for the American public, and Cyber Command is going to do whatever it can to defend the nation,” Bartz said. 

Bartz noted that U.S. Cyber Command would use the results of the exercise to improve cybersecurity defense capabilities in a world where cyber threats are only multiplying. 

“It’s trying to stay one step ahead of what our adversaries are doing, and that is what we are going to point our training to,” he stressed.

Republican House campaign arm says it will begin soliciting cryptocurrency donations

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.

“The NRCC is proud to lead the charge in accepting cryptocurrency campaign contributions,” Rep. Tom EmmerThomas (Tom) Earl EmmerHillicon Valley: Senate unanimously confirms Chris Inglis as first White House cyber czar | Scrutiny mounts on Microsoft’s surveillance technology | Senators unveil bill to crack down on cyber criminals Republican House campaign arm says it will begin soliciting cryptocurrency donations House Democrats’ campaign arm seizes on latest Greene controversy MORE (R-Minn.), the group’s chair, said in a statement. 

“We are focused on pursuing every avenue possible to further our mission of stopping [House Speaker] Nancy PelosiNancy PelosiYoung Turks founder on Democratic establishment: ‘They lie nonstop’ Hillicon Valley: Senate unanimously confirms Chris Inglis as first White House cyber czar | Scrutiny mounts on Microsoft’s surveillance technology | Senators unveil bill to crack down on cyber criminals ‘It’s still a BFD’: Democrats applaud ruling upholding ObamaCare MORE’s socialist agenda and retaking the House majority, and this innovative technology will help provide Republicans the resources we need to succeed.” 

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The NRCC said it will process cryptocurrency contributions using the payment service BitPay. Those donations will then be converted into U.S. dollars before actually being transferred into the group’s bank account. 

That process will allow the group to effectively bypass the Federal Election Commission’s (FEC) $100 cap on transfers of cryptocurrency and accept donations of up to $10,000 per year from an individual. 

While the NRCC is the first national party committee to begin soliciting contributions in cryptocurrency, some other campaigns and political committees have already been doing so. 

Emmer’s House campaign committee, for example, accepted cryptocurrency donations last year, as did the 2020 Democratic presidential campaign of former tech entrepreneur Andrew YangAndrew YangAdams, Wiley lead field in NYC mayoral primary: poll Republican House campaign arm says it will begin soliciting cryptocurrency donations Five takeaways from the NYC Democratic mayoral debate MORE

The proliferation of cryptocurrencies in recent years has emerged as a particular challenge for the FEC. Cryptocurrencies promise users more privacy  as well as freedom from central banks  that the FEC worries will conflict with the transparency and disclosure laws surrounding campaign finance.

US firms would pay less than foreign competitors under Biden tax plan: Reuters

U.S. companies would likely pay less in income taxes than their foreign competitors if President BidenJoe BidenBaltimore police chief calls for more ‘boots on the ground’ to handle crime wave Biden to deliver remarks at Sen. John Warner’s funeral Garland dismisses broad review of politicization of DOJ under Trump MORE’s corporate tax increases were enacted, according to a Reuters analysis published Tuesday.

The analysis comes amid a debate over how to pay for infrastructure spending. Republicans and business groups frequently push back against Biden’s proposals to pay for infrastructure investments through corporate tax increases by arguing that doing so would make U.S. companies less competitive. 

Reuters’s analysis looked at 52 of the largest U.S. companies and compared those companies’ effective tax rates to the rates of 200 foreign competitors the U.S. firms named in filings. 

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The news outlet then applied two of Biden’s corporate tax proposals to the U.S companies’ 2020 earnings. Those proposals would increase the U.S. corporate rate from 21 percent to 28 percent and raise a minimum tax on U.S. companies’ foreign earnings to 21 percent 

Reuters found that the U.S. companies already pay a lower effective tax rate than their foreign competitors. The U.S. firms had an average effective tax rate of 16 percent in 2020, while the foreign companies had an average effective tax rate of 24 percent.

If Biden’s corporate tax proposals had applied to the U.S. companies’ 2020 earnings, the businesses would have paid an average effective tax rate of 21 percent, which is still lower than what the foreign competitors paid, Reuters reported.

Reuters said that the U.S. businesses benefit from tax breaks that are more generous than preferences in other countries and that U.S. companies can benefit more from shifting profits into tax havens than companies based in certain other countries can.

Reuters also said that the gap under Biden’s plan between U.S. companies’ effective tax rates and foreign competitors’ effective tax rates would likely be even higher than its analysis showed because the analysis didn’t account for Biden’s proposals for tax breaks to encourage domestic manufacturing and his proposals for foreign companies to pay higher taxes on their U.S. income.

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The White House said in a statement to Reuters that “this reporting highlights that the corporate tax code is broken.” 

The White House highlighted the article in a statement on Tuesday, saying that “the analysis bolsters the President’s argument that his Made in America tax plan will reward work, wealth, ensure large corporations pay their fair share in taxes, and are common sense reforms that will finance critical investments in our economic growth and competitiveness.”

Business Roundtable, a group that represents the CEOs of major U.S. companies, told Reuters that while comparisons of effective tax rates are “informative,” comparing the statutory tax rates of countries is also a valid way to look at how taxes impact the competitiveness of U.S. companies.

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