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Postmaster General Louis DeJoy testifies during an August hearing before the House Oversight and Reform Committee. Photo: Tom Williams-Pool/Getty Images

House Oversight Committee Chair Carolyn Maloney (D-N.Y.) said late Monday the panel will investigate allegations that postmaster general Louis DeJoy's former company reimbursed employees for donations to Republican campaigns, the Washington Post first reported.

Why it matters: Such action would violate campaign finance law if it had taken place at the Trump and GOP donor's former firm New Breed in North Carolina, as alleged.

  • Maloney said in an emailed statement that if these allegations are true, DeJoy "could face criminal exposure — not only for his actions in North Carolina, but also for lying to our committee under oath."
  • She added that the Board of Governors should "immediately suspend" DeJoy from the U.S. Postal Service, adding "they never should have selected him in the first place."

What they're saying: Monty Hagler, a spokesperson for DeJoy, said in a statement previously to the Washington Post Sunday, when it first reported the allegations, that DeJoy "was never notified" by employees at New Breed "of any pressure they might have felt to make a political contribution."

  • DeJoy "believes that he has always followed campaign fundraising laws and regulations," he added.

Of note: When asked on Monday whether there should be an investigation into the allegations, President Trump said: "Sure."

  • Asked if DeJoy should lose his job if the allegations are proven to be true, Trump said: "Yeah, if something can be proven that he did something wrong, always."
  • Trump said he didn't "know too much about" the claims, stressing that DeJoy is a "very respected man" before adding: "I think he's a very honest guy, but we'll see."

Background: DeJoy said on Aug. 18 he would halt operational changes and cost-cutting to the USPS until after November's election to "avoid even the appearance of any impact on election mail."

  • But Democrats have accused DeJoy and Trump of turning the USPS into "a political football set to undermine a federal election," and New York's attorney general filed a lawsuit on Aug. 25 to block changes to postal policies.
  • Six days later, DeJoy denied during a combative hearing before the House Oversight that he was seeking to "sabotage" election mail, but would not commit to reversing changes.
  • The House Oversight Committee subpoenaed DeJoy on Sept. 3 for records related to the changes and information on mail delivery delays.
  • Representatives for the Postal Service did not immediately respond to Axios' requests for comment.

Go deeper

Barr authorizes federal prosecutors to investigate voter fraud allegations

Photo: Jeff Roberson - Pool/Getty Images

Attorney General Bill Barr has authorized U.S. attorneys to conduct investigations into alleged voter fraud if there are "clear and apparently-credible allegations of irregularities" that could change the outcome of a federal election in a particular state, AP first reported and Axios can confirm.

Why it matters: President Trump has refused to concede the election to President-elect Joe Biden, alleging a conspiracy of widespread voting fraud and corruption by Democratic election officials. He has thus far not provided specific evidence for his claims, which have been shot down by both Democratic and Republican secretaries of state.

Beauty giant Coty Cosmetics looking to sell its own branded products

Coty Cosmetics CEO Sue Nabi. Photo: Axios on HBO

Coty Cosmetics CEO Sue Nabi tells Axios the beauty giant will “probably” introduce Coty-branded products one day.

Why it matters: Coty produces some of the world’s most popular fragrances, skin care products and color cosmetics on behalf of other well-known brands, but has shied away from producing its own branded products.

56 mins ago - Sports

NFL to end race-based testing in concussion settlements

Photo: Brett Carlsen/Getty Images

The National Football League on Wednesday reached an agreement with former players to end the controversial practice of race-based adjustments in dementia testing, AP reports.

Why it matters: The deal, which must still be approved by a judge, comes amid a broader discussion of racial inequities in health care.