Axios Sneak Peek

July 20, 2023
Welcome back to Sneak. Smart Brevityâ„¢ count: 1,018 words ... 4 minutes.
1 big thing: GOP's whistleblower fireworks

A pair of IRS whistleblowers testified to Congress that the Justice Department slow-walked its investigation into Hunter Biden and ignored recommendations to file felony tax charges, instead striking a plea deal that will allow the president's son to avoid prison time.
Why it matters: With former President Trump on the verge of being indicted for the third time, Republicans' strategy for defending the GOP front-runner depends largely on convincing the public that President Biden has politicized the DOJ.
- House Republicans have invested major time and resources into the Hunter Biden investigation, bringing together three separate committees today for a blockbuster hearing focused on the IRS allegations.
- The GOP-led hearing gave Republicans a welcome distraction from news that Trump soon could be charged for his efforts to overturn the 2020 election. But it fell short of producing any evidence of wrongdoing by Biden himself.
Driving the news: IRS agents Gary Shapley and Joseph Ziegler alleged that U.S. Attorney David Weiss, the Trump-appointed prosecutor leading the Hunter Biden probe, was prevented from bringing charges in jurisdictions outside Delaware.
- Ziegler, a self-described gay Democrat whose identity was kept anonymous until today, testified that prosecutors from DOJ's tax division drafted a 99-page memo in August 2022 recommending both felony and misdemeanor tax charges against Hunter Biden.
- Those recommendations ultimately were not adopted — one of several instances of what Ziegler described as "abnormal" decision-making and resistance from political appointees at DOJ.
The other side: Weiss has told Congress that he was granted "ultimate authority" over "where, when and whether to file charges" in the Hunter Biden case — a point Democrats repeatedly made throughout the hearing.
- Weiss also has disputed Shapley's allegation that he sought special counsel status and was turned down — which Attorney General Merrick Garland also has denied — and suggested Shapley may have misunderstood him.
The intrigue: Like virtually every House Oversight hearing in the post-Trump era, the session featured theatrics from members of both parties:
- Rep. Marjorie Taylor Greene (R-Ga.) displayed sexually explicit images from Hunter Biden's laptop — forcing Fox News to blur its broadcast — while accusing him of violating laws against transporting prostitutes.
- While pointing out that former Rudy Giuliani associate Lev Parnas has refuted allegations of Biden family corruption in Ukraine, Rep. Robert Garcia (D-Calif.) displayed a poster-sized image of Giuliani with dark hair dye dripping down his face.
Between the lines: House Republicans’ investigations into the Biden family have thus far failed to convince a skeptical public, often plagued by unreliable witnesses and appearances of overt partisanship.
- But today's sworn testimony by Shapley and Ziegler — two career, nonpartisan officials with no obvious axe to grind — raised serious allegations that so far have gone unanswered by the Justice Department.
- Weiss has offered to testify after Hunter Biden's plea hearing next week, while Garland's scheduled Sept. 20 testimony could be accelerated by the GOP's threats to impeach the attorney general.
2. 🔎 Border crossings plummet as GOP tees up impeachment
Photo: Al Drago/Bloomberg via Getty Images
New government data shows illegal border crossings have plummeted to the lowest levels in more than two years — the latest piece of good news for Biden on one of his toughest issues, Axios' Stef Kight reports.
Why it matters: Despite the trend, House Republicans excoriated Homeland Security Secretary Alejandro Mayorkas for "dereliction of duty" at the border in a 111-page report released today — teeing up a long-expected impeachment inquiry.
- The exhaustive "phase 1" investigation report describes Mayorkas as "the chief architect of the illegal immigration crisis that Americans have suffered through since January 2021."
- It's another sign of how important the border issue has become for Republicans, even as the chaos in border states has waned.


By the numbers: Monthly illegal border crossings dropped to the lowest level in two years in June — falling to under 100,000 for the first time in that time period, according to government data released yesterday.
- Faced with the end of the Title 42 pandemic policy, which enabled the rapid expulsion of migrants and asylum seekers, Biden imposed severe new asylum restrictions in May.
- A federal judge is now considering whether to block Biden's new asylum rule, which automatically rejects most migrants who illegally cross the border without first seeking refuge in a country they traveled through.
3. 💰 Vulnerable House Republicans maintain fundraising edge


As key House races begin to take shape for 2024, Republicans in competitive districts continue to raise more in individual contributions than their Democratic counterparts, Axios' Andrew Solender reports.
Why it matters: Some of the top GOP fundraisers are in districts Biden carried in 2020 — which Democrats see as key to winning back the majority.
By the numbers: Of the top 10 Q2 fundraisers in districts rated by Cook Political Report as toss-ups or leaning toward one party, seven are Republicans. Six of them represent Biden districts.
- Rep. Michelle Steel (R-Calif.) led the pack, raising $763,000 from April to June.
- The top Democratic fundraisers were Reps. Marie Gluesenkamp Pérez (D-Wash.) and Pat Ryan (D-N.Y.); each brought in more than $600,000.
- Seven of the lowest figures came from Democrats, though indicted Rep. George Santos (R-N.Y.) brought in the least with a reported $162,000.
Between the lines: These figures only take into account individual contributions, excluding transfers from other campaign committees.
- House Speaker Kevin McCarthy's (R-Calif.) joint fundraising committee, Protect The House 2024, topped off many of his vulnerable incumbents with transfers of $100,000 to $225,000.
4. 🕒 Julie Su's new record
Photo: Eric Lee/Bloomberg via Getty Images
President Biden's pick for Labor secretary, Julie Su, will set a record tomorrow: 127 days in Senate purgatory, Axios' Hans Nichols reports.
Why it matters: No nominee has lingered longer without a confirmation vote when his or her party controlled the Senate and the White House, according to a historical analysis by the Congressional Research Service prepared for Sen. Bill Cassidy (R-La.).
- Republicans are demanding that Biden withdraw her nomination.
- "She is a strong nominee. We're trying to do everything we can to get her passed, plain and simple," Senate Majority Leader Chuck Schumer (D-N.Y.) said today.
📬 Thanks for reading tonight. This newsletter was copy edited by Kathie Bozanich.
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