Press Releases

Watchdog files suit against FTC for blocking records on baby formula shortage investigation

The agency has launched multiple investigations into “top-level” crises facing the country

October 31, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Federal Trade Commission (FTC) for blocking records surrounding the FTC’s investigation into the baby formula shortage crisis.

In May 2022, the nation began to experience a shortage of baby formula after a major producer was shut down in February by the FDA for health violations as some of the formula from that facility had been contaminated with bacteria. However, it was soon revealed that a whistleblower tried to warn the FDA as early as October 2021 about the conditions and what could happen if they did not act. Unfortunately, the FDA had a series of missteps in response. Most notably, the whistleblower’s report was lost in the FDA’s mailroom for four months.

Instead of digging deep into what caused the crisis and what could have been done differently to stop it, the administration directed the FTC to investigate baby formula manufacturers. Between industry consolidation and price gouging, administration officials appeared intent on shifting all responsibility to the private sector. This is not the first time the administration has turned to the FTC to avoid accountability for an emerging crisis, as the public has witnessed domestic energy producers and the meat industry pegged for unstoppable inflation. FGI has an ongoing case against the FTC for withholding records pertaining to its oil and gas investigation.

Americans deserve to know what this FTC investigation into the baby formula producers is accomplishing, if anything, that can help alleviate the crisis and provide information that could stop it from happening again. Due to the urgency of the ongoing baby formula shortages, FGI has filed suit to force the FTC to release the information.

Peter McGinnis, spokesman for FGI, issued the following statement:

“Launching FTC investigations has been a favored tactic of this administration in the face of multiple crises. Instead of changing policy or personnel, the FTC has been called in to refocus criticism on the private sector. Americans deserve to know what this investigation is doing to get baby formula back on the shelves and how it can help prevent future shortages.”

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Watchdog files suit against DOT; FHWA for blocking records on controversial highway memo

Transportation has been reluctant to release records surrounding the December 2021 memo discouraging states from spending funds on expanding roads

October 6, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Department of Transportation (DOT) and the Federal Highway Administration (FHWA) for failing to release records surrounding a December 2021 FHWA memo asking states to use funds from the Bipartisan Infrastructure Law (BIL) for bike lanes and climate resilience instead of maximizing investment in highway expansion and new bridges.

In November 2021, Congress passed the BIL, a whopping $1.2 trillion funding bill that was sold to the public as an investment in America’s infrastructure. However, on December 16, 2021, the FHWA released a memo laying out “guidance” for states on how to spend the funds they would receive from the BIL, calling it an “overarching framework to prioritize the use of BIL resources on projects that will Build a Better America.” The guidance encouraged states to spend funds on climate projects and bike lanes rather than the traditional infrastructure that had been a primary selling point of trillion dollar bill. The memo came during the height of the nation’s supply chain crisis when support for investment in new infrastructure was at its peak. The catalyst for the memo and the influence of special interests on its development remain open questions that FGI is seeking to identify through its FOIA request.

Environmental special interests’ backroom involvement in decisions about how to allocate funds provided in the administration’s massive spending legislation – specifically the America Rescue Plan, the Bipartisan Infrastructure Law, and the Inflation Reduction Act – has been an ongoing concern for outside watchdogs over the past year and a half.

Peter McGinnis, spokesman for FGI, issued the following statement:

“Trillions of taxpayer dollars have been doled out over the past 20 months with little to show for it but higher inflation and a drained strategic petroleum reserve. Whether it’s the pandemic, crumbling infrastructure, or runaway inflation, it’s unclear how Americans’ tax dollars are being spent or whether they are being used consistent with the promises made while attempting to sell the legislation to the nation and during the public relations celebrations following passage. Americans deserve to know who on the inside is making these decisions and why they are opting to spend taxpayer dollars towards the goals of special interest groups rather than investing in what Americans need.”

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DHS failure to release records on delayed implementation of anti-fentanyl legislation draws lawsuit

DHS is keeping records from the public regarding their failures to put 2018 law to work

October 3, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Department of Homeland Security (DHS) for failing to release records regarding the Synthetics Trafficking Overdose Prevention (STOP) Act and its implementation.

In October 2018, the bipartisan STOP Act was signed into law to reduce the flow of opioids and other illegal drugs into the United States through the U.S. Postal Service, which had become an easy target for traffickers seeking to evade law enforcement. As America’s opioid epidemic harms millions of American families and remains a leading cause of overdoses in the United States, implementation of the STOP Act has appeared to stall. Bureaucratic delays and missing deadlines for almost four years has raised questions about the commitment by DHS to prioritizing the fight against fentanyl trafficking and the opioid crisis afflicting a growing number of Americans.

Elected officials from both sides of the aisle have called the opioid crisis a public health emergency, yet DHS has taken little action to implement the law meant to fight it. Along with slow walking implementation of the STOP Act, DHS’ lax illegal immigration policies have created another crisis at the southern border that has likely exacerbated the opioid crisis. The wishes of Special interest groups pushing for open borders appear to trump concerns over a years-long opioid crisis devastating American families. It’s clear from the agency’s response that taking DHS to court is the only way FGI will be able to pry loose records shedding light on the failure to act on this important issue.

Peter McGinnis, spokesman for FGI, issued the following statement:

“The inability of DHS to finalize regulations and fully implement a bill that would help stop the flow of illegal opioids into the United States is astonishing and frankly disappointing. With each passing day, more and more Americans lose their battle with addiction while Secretary Mayorkas and his senior leadership prioritize the open border and censorship of Americans. This is the epitome of dysfunctional government. The public deserves answers on why implementation of the STOP Act is not a priority and when we can expect them to start recognizing the importance of fighting the opioid crisis.”

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IRS Brings Back Former Lerner Boss and Tea Party Targeting Team Member

Nikole Flax will be head of IRS office that will hire 87,000 new agents

September 2, 2022

(Washington, DC) – The Functional Government Initiative (FGI) expressed its concern over the assignment of an individual associated with an IRS targeting scandal to head the office overseeing the office in charge of the 87,000 new IRS agents. Reports that Nikole Flax, who was chief of staff to the IRS commissioner who was fired in the wake of the Tea Party targeting scandal, are sure to stoke fears that these new agents may be used to harass low- and middle-income taxpayers and those identified for political reasons. Contrary to the promises that no one who earns less than $400,000 a year will pay more taxes, the Congressional Budget Office analysis indicates at least $20 billion of the $124 billion in increased tax revenues projected to be gained from these additional agents will come from low- and middle-income Americans.

During the Tea Party targeting scandal, the IRS was forced to pay millions in settlements for improperly denying and slow-walking applications for nonprofit status from conservative groups. Flax was part of the group of IRS employees whose emails inexplicably disappeared due to hard drive crashes as Congress investigated. FGI has submitted numerous requests to obtain information regarding the previous IRS targeting scandal, as well as the proposal to beef up the IRS. In the case of one Freedom of Information Act (FOIA) request, the IRS bizarrely responded that it had “no records” discussing the proposal to add 87,000 new agents to its workforce and $80 billion to its budget.

Peter McGinnis, spokesman for FGI, issued the following statement:

“It’s fascinating, and indicative of the level of dysfunction in government, that the same folks who were part of the Tea Party targeting 10 years ago would be tasked with managing a controversial program with such a tremendous potential for abuse. At the very least, this move is tone-deaf. Most certainly, it serves to heighten the fears that the amping up of the IRS may result in a repeat of the earlier scandal.”

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Watchdog investigating whether student loan forgiveness order driven by politics

With the midterms quickly approaching, student loan forgiveness could have been a move to influence polling or court voters

August 25, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) is opening an investigation into whether the student loan forgiveness executive order was driven by politics rather than sound policy or a defensible economic evaluation.

Yesterday, President Biden signed an executive order which would cancel student loans up to $10,000 for individuals who make under $125,000 a year annually or less than $250,000 annually per household. While some celebrated this announcement, the vast majority of Americans scorned at it. The presidential handout is projected to cost at least $570 billion according to some estimates and may yet contribute to already record inflation levels. The handout will only be available for the one-third of Americans who have college degrees while the two-thirds without a college degree will foot the bill.

Americans are stuck asking why now? Blue collar workers and those individuals who have already paid off their debts appear to be left holding the bag for paying someone else’s college tuition. Canceling student debt has been a long-time progressive goal of the Biden Administration. Huge spending decisions like this should be based on economic analyses and evaluations, not politics and opinion polling that the timing suggests may be the real drivers.

FGI’s inquiry seeks to find whether things such as polling, approval ratings, and midterm elections were factored into the decisions related to student loans and how student loan forgiveness decisions were communicated, including within the Department of Education, with outside special interests, with the White House, and with others. The Americans who are footing this bill deserve answers, and FGI is conducting this investigation to uncover them.

Peter McGinnis, spokesman for FGI, issued the following statement:

“The administration gave a handout to Americans with the highest earning potential while telling the two-thirds of Americans without college degrees or student debt they have to pay for it. Against the backdrop of the midterm elections and out of control inflation, the move appears directed at giving officials a talking point that they are putting money back in people’s pockets and relieving clear economic pain from the recession. All indications are that politics played a leading role in this massive subsidy, which appears to benefit a demographic being courted by the President’s party. The Americans who never went to college and those who saved and already paid off their loans deserve to know if they’re paying for someone else’s college due to inappropriate political considerations.”

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IRS claims it can find “no records” on an $80 billion increase in its budget

Agency that can’t find who leaked private taxpayer info also asserts no one in the agency discussed additional funds and 87,000 new employees provided in “Inflation Reduction Act.”

August 9, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Internal Revenue Service (IRS) after the agency amazingly declared it had no records regarding an $80 billion proposed funding increase and an additional 87,000 employees included in the economic package referred to by its proponents as the “Inflation Reduction Act.” The proposals for drastically increased funding and staffing for the IRS were originally included in the Biden Administration’s fiscal year 2022 budget request.

Earlier this year, FGI began investigating the administration’s plan to flood the IRS with more taxpayer dollars for more agents and other things supposedly to increase compliance. The massive influx to the IRS would come amidst ongoing controversies of alleged political targeting and leaking of sensitive financial data. The original proposals also included a controversial attempt to monitor private transactions of more than $600, which would have affected nearly every taxpayer.

The IRS recently replied to FGI’s request for information by stating they have “no records” regarding any economic analysis, request for new agents, or resources, and they closed our case. With this response, the IRS is astonishingly claiming that it performed no analysis, there were no internal discussions and not a single mention by agency officials of these proposals, and there were no communications between IRS officials and the White House and Treasury officials regarding a plan to nearly double its budget and personnel. This would also indicate the agency has absolutely no plan for what to do with the additional funds, personnel, or resources.

After careful consideration, FGI is filing suit against the IRS to reveal what is really going on with these controversial proposals. We seek to uncover records if they do, in fact, exist. If it is true that the IRS has no records on this proposal, then Americans deserve answers regarding the dysfunction involved in keeping the IRS completely in the dark about a massive increase in the agency’s funding, staff, and resources.

Peter McGinnis, spokesman for FGI, issued the following statement:

“Not conducting an economic analysis or having any communications, not even a single email regarding one of the largest budget increases in agency history is hard to believe. If true, then it only goes to show that government spending has become so reckless that agencies are being handed billions of taxpayer dollars without first consulting with them about how those dollars will be spent. With all of the incredible dysfunction at the IRS – targeting organizations for political views, releasing taxpayer data they had promised to keep private – it is not surprising they would report they knew nothing about this proposal, but it should disturb every American.”

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HHS refuses to provide records revealing if cloth masks work or not

Watchdog sues after agency sits on findings of cloth masks studies

August 16, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Department of Health and Human Services (HHS) seeking records surrounding studies about the efficacy of cloth masks.

In January of this year, the Centers for Disease Control (CDC) revealed that their internal studies have shown that wearing cloth masks is not an effective way to prevent the spread of COVID. This revelation came after almost two years of HHS, along with its subsidiaries the CDC and the National Institutes of Health (NIH), recommending the use of cloth masks to stop the spread of COVID-19. During this time, Dr. Anthony Fauci, who leads NIH’s National Institute of Allergy and Infectious Diseases (NIAID) along with his role as an advisor to the White House, and other government leaders went on regular media tours encouraging mask mandates and dismissing those who questioned whether cloth masks were effective in stopping the spread of COVID-19. They quite possibly continued doing so after having access to the studies.

For more than two years, many Americans were subjected to mask mandates in most public places. Even months after reports were available calling into question the efficacy of cloth masks, numerous school districts across the United States continued to require children, the least susceptible demographic to COVID-19, to wear cloth masks in the classroom with the apparent backing of HHS. Even today, districts such as San Diego Unified require student masking. Americans deserve to know when HHS discovered that cloth masks were ineffective, why the results of these studies were kept from the public, and why HHS continued to recommend cloth masks when the data showed they were largely ineffective.

After this information was reported, FGI began seeking records surrounding internal studies on the efficacy of cloth masks and whether the agencies funded randomized control trials related to masks. While FGI has been willing to work with HHS and its subsidiaries, the agencies have not been forthcoming. The only way to now retrieve these records and make them accessible to the American public is through the courts. FGI has been forced to resort to litigation with HHS, NIH, and NIAID over their ongoing withholding of the requested records.

Peter McGinnis, spokesman for FGI, issued the following statement:

“When the CDC revealed that cloth masks were ineffective, they were stating what the American public already knew for months. Unfortunately, those who publicly questioned the efficacy of cloth masks prior to their announcement were dismissed or branded purveyors of misinformation, and worse by Dr. Fauci and other government officials. The American people deserve to know how long HHS was sitting on this data, if they even reviewed studies before making their recommendations for mandated masks, and why they continued to promote cloth masks after they knew they didn’t work to stop the spread of COVID-19.”

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Treasury Hiding Records That Could Reveal True Basis for Fed Reserve Nomination

FGI files transparency suit seeking records regarding renomination of Jerome Powell

July 27, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Department of the Treasury seeking records on the Administration’s decision to renominate Jerome Powell as Chair of the Federal Reserve during a time of record-high inflation.

In November 2021, President Biden nominated Jerome Powell for a second term as chair of the Federal Reserve. Leading up to and during his renomination process, Powell had overseen monetary policy as inflation hit levels not seen for forty years. Given the state of the nation’s economy, Powell’s renomination had received criticism and pushback from elected officials on both sides of the aisle.

FGI’s initial concern was based on public reports that the renomination of Chairman Powell was not based on his record, his willingness to address skyrocketing inflation, or the independent agency’s statutory mission. Rather, the decision may have been due to his prioritizing a special interest agenda that is at least partially responsible for driving gas prices to all-time highs. The request from FGI is intended to uncover those motivations.

Though outside of the Federal Reserve’s mission, mitigating or inserting speculative climate risk analysis into U.S. monetary policy may have been a driving factor in Powell’s renomination. If true, this would represent a substantial departure from long-established norms of Federal Reserve independence upheld by both major political parties. Inserting such policy goals would no longer insulate the powerful independent agency from blowing political winds that could distract from its statutory mandate.

Peter McGinnis, spokesman for FGI, issued the following statement:

“Jerome Powell was given a second chance by the Biden Administration, and the American people deserve to know why. Based on public statements by senior officials, Powell’s second stint at the Federal Reserve may represent a concerning departure from past precedent that sought to protect independent agencies from a given Administration’s policy goals. With inflation continuing to climb and efforts to double down on the priorities of the climate lobby driving gas prices still higher, Powell’s renomination may represent the clearest sign yet of the Administration’s priority of fighting climate change over inflation. FGI will continue to pursue these documents so the American public can have an accurate picture of the federal government’s priorities.”

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CFPB sued over records related to attempted takeover of FDIC

FGI seeking to discover where this takeover originated and what special interests were involved

July 14, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Consumer Financial Protection Bureau (CFPB) to compel the release of records regarding an attempted CFPB takeover of the independent Federal Deposit Insurance Corporation (FDIC).

CFPB Director Rohit Chopra, also a board member of the FDIC, made unprecedented moves to undermine the longstanding independence of the FDIC. Chopra, a former Obama political appointee and a former member of Hillary Clinton’s transition team, attempted to circumvent the authority of Chairman McWilliams, including while she was on a nine-hour flight for FDIC business. After receiving a draft document produced by career employees and subject matter experts, Chopra again attempted to force a vote of the FDIC board on a controversial proposal related to bank mergers. Even the FDIC’s Office of General Counsel informed Chopra that his procedural maneuvers violated the by-laws of the FDIC and were not valid.

At its inception, the FDIC was designed to operate as an independent agency largely immune to the changing policies of new administrations. However, this attempted takeover broke nearly 90 years of tradition and may undermine the independence of other independent agencies across the US government. Whether this abolition of long-standing tradition originated from the White House or outside special interests remains an open question.

In January 2022, FGI opened an investigation, seeking documents about the CFPB’s role in the controversy, the long-standing authority of the FDIC chair, and the origins of this attempted FDIC takeover. The records FGI seeks, which the CFPB appears to be hiding, could provide some answers.
Initially, CFPB appeared to be willing to work with FGI but then abruptly ceased all communications, leaving FGI no other choice to but to file suit against CFPB.

Peter McGinnis, spokesman for FGI, issued the following statement:

“Trying to force independent agencies to function as partisan rubber stamps violates the historic norms of how these agencies were designed to function. Director Chopra’s attempt to takeover and turn the FDIC into a political tool is not only a threat to the FDIC itself but also an attack on the objectivity of other independent federal agencies. The American people deserve to know whether this coup was by Mr. Chopra’s own design or a calculated effort by the White House or outside special interests.”

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DOE Withholds Records on Strategic Petroleum Reserve Release

FGI files suit to discover if politics played a role 

July 7, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Department of Energy (DOE) seeking records on the Administration’s decision to release millions of barrels of oil from the Strategic Petroleum Reserve (SPR).

In November 2021, amidst skyrocketing gas prices, the Biden Administration announced it was going to tap into the Strategic Petroleum Reserve and withdraw 50 million barrels of oil. The SPR was created by Congress following the Arab oil embargo of the early 1970s with the intent to maintain a reserve to address severe disruptions in supply. As the administration draws from the reserve, there has been no major disruption in the oil supply that would have warranted such a withdrawal. By contrast, the Colonial Pipeline hacking attack in May of last year, which disrupted fuel supplies to the East Coast, did not trigger a release from the SPR.

FGI’s document request was triggered by concerns the decision to drawdown was in response to the Administration’s falling approval numbers, due in part to rising gas prices, rather than disruptions in supplies. The Administration has since made additional releases from the SPR following the Russian invasion of Ukraine. These releases have depleted the reserve to dangerous levels not seen since the 1980s.

In January 2022, FGI opened up an investigation into the decision to release the first 50 million barrels from the SPR. Despite repeated efforts by FGI to work with DOE during this investigation, the agency has not complied with its obligations under the Freedom of Information Act and FGI believes this lawsuit is the only way to force DOE to release the records that could show the true basis for this unprecedented drawdown of the SPR.

Peter McGinnis, spokesman for FGI, issued the following statement:

“With each release from the Strategic Petroleum Reserve, we weaken our ability to respond to a legitimate supply crisis. The SPR was created to respond to real emergencies, a category that does not include falling poll numbers caused by a failed energy policy. Americans deserve to know if political motives are behind moves that put their security at risk.”

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