National

The FBI and five other law enforcement and intelligence agencies have collaborated for months in an investigation into Russian attempts to influence the November election, including whether money from the Kremlin covertly aided President-elect Donald Trump, two people familiar with the matter said. The agencies involved in the inquiry are the FBI, the CIA, the National Security Agency, the Justice Department, the Treasury Department’s Financial Crimes Enforcement Network and representatives of the director of national intelligence, the sources said. Investigators are examining how money may have moved from the Kremlin to covertly help Trump win, the two sources said. One of the allegations involves whether a system for routinely paying thousands of Russian-American pensioners may have been used to pay some email hackers in the United States or to supply money to intermediaries who would then pay the hackers, the two sources said. The informal, inter-agency working group began to explore possible Russian interference last spring, long before the FBI received information from a former British spy hired to develop politically damaging and unverified research about Trump, according to the sources, who spoke on the condition of anonymity because of the sensitive nature of the inquiry.

National: Intercepted Russian Communications Part of Inquiry Into Trump Associates | The New York Times

American law enforcement and intelligence agencies are examining intercepted communications and financial transactions as part of a broad investigation into possible links between Russian officials and associates of President-elect Donald J. Trump, including his former campaign chairman Paul Manafort, current and former senior American officials said. The continuing counterintelligence investigation means that Mr. Trump will take the oath of office on Friday with his associates under investigation and after the intelligence agencies concluded that the Russian government had worked to help elect him. As president, Mr. Trump will oversee those agencies and have the authority to redirect or stop at least some of these efforts. It is not clear whether the intercepted communications had anything to do with Mr. Trump’s campaign, or Mr. Trump himself. It is also unclear whether the inquiry has anything to do with an investigation into the hacking of the Democratic National Committee’s computers and other attempts to disrupt the elections in November. The American government has concluded that the Russian government was responsible for a broad computer hacking campaign, including the operation against the D.N.C. The counterintelligence investigation centers at least in part on the business dealings that some of the president-elect’s past and present advisers have had with Russia. Mr. Manafort has done business in Ukraine and Russia. Some of his contacts there were under surveillance by the National Security Agency for suspected links to Russia’s Federal Security Service, one of the officials said.

National: U.S. counterintelligence officials are examining possible ties between Russia and Trump associates | The Washington Post

U.S. counterintelligence officials are sifting through intercepted communications and financial data as part of a wider look at possible ties between the Russian government and associates of President-elect Donald Trump, officials said. But while it has been clear for months that a broad investigation is underway, what remains murky — even to lawmakers receiving closed briefings — is its scope and target. It is unclear if the intercepts being examined have any connection to the Trump campaign. But the investigation adds to the uncertainty surrounding Trump’s relationship with Russia even as he is sworn in as president. U.S. intelligence agencies have already concluded that Russia interfered in the election to help Trump win. FBI Director James B. Comey has been chastised by Democratic lawmakers for refusing to even acknowledge that it was investigating alleged links between Trump or his associates and the Kremlin. Trump’s former campaign chairman, Paul Manafort, has been under FBI scrutiny for some time, including for allegations of illegal financial dealings in Ukraine, current and former U.S. officials said. Manafort has done business in Russia and Ukraine.

National: International observers recommend changes to U.S. electoral system | McClatchy

On the eve of Donald Trump’s inauguration, a group of international election experts who observed the Nov. 8 election have suggested overhauling the United States’ “particularly unique” Electoral College system, which gave Trump the presidency. The changes, the group from the Organization of American States said, should be made to keep candidates from focusing just on battleground states. The group also raised concerns about the rise in polarizing and divisive rhetoric in U.S. campaigning and criticized Trump for making threats to restrict journalists’ access and for threatening legal action against them for expressing their views. The group’s report noted the claims of Russian interference in the election, but made no assessment of their accuracy or impact on the outcome. The report was similar in tone to those that U.S. observers make on elections in foreign nations and was noteworthy primarily because it was the first time OAS experts had monitored a U.S. election – something that resonated deeply in Latin America, where the United States has long advocated OAS monitoring for other nations.

National: Obama calls voter fraud fears ‘fake news’ | CNN

President Barack Obama broke out the term “fake news” in reference to concerns about voter fraud on Wednesday, making the case that voting should be easier, not more difficult. Obama was asked in his final news conference as President about race relations in the US, saying that “inequality” was what concerns him most. “I worry about inequality because I think if we are not investing in making sure everybody plays a role in this economy, the economy will not grow as fast, and I think it will also lead to further and further separation between us as Americans,” Obama said. “Not just along racial lines — here are a whole lot of folks who voted for (President-elect Donald) Trump because they feel left behind. … You don’t want to have an America in which a very small sliver of people is doing very well and everybody else is fighting for scraps, because that’s oftentimes when racial divisions get magnified.”

National: Swarm of US agencies probe suspected Kremlin-Donald Trump election funding | Sydney Morning Herald

Just days before Donald Trump’s swearing in as American president, a news report has revealed the remarkable breadth of a joint investigation by no less than six US intelligence agencies of claims that Russia helped the Trump campaign – and of the credibility the agencies attach to information that Trump dismisses as “crap”. Attempting to establish a money trail, rather than pursuing lurid, sensational and unsubstantiated claims that Moscow has a sex tape that could be used to blackmail Trump, the agencies are probing allegations that a system for delivering government pensions to Russians living in the US may have been used as a conduit to pay hackers who breached Democratic Party computers to harvest a trove of emails that were leaked through WikiLeaks to embarrass Hillary Clinton. The agencies, according to the McClatchy news service, are the FBI, CIA, National Security Agency, Justice Department, Treasury and National Intelligence Agency. The Senate Intelligence Committee also has launched its own investigation, which will have subpoena power, to investigate Russian interference in the election.

National: House panel probes DHS scans of state election tech | FCW

The leader of the House Committee on Oversight and Government Reform wants a fuller accounting from the Department of Homeland Security about complaints of the agency “rattling of doorknobs” on the state of Georgia’s network firewall. Committee Chairman Jason Chaffetz (R-Utah) sent letters on Jan. 11 to DHS Secretary Jeh Johnson and DHS Inspector General John Roth asking about “unauthorized scans” and “unsuccessful attempts to penetrate” the Georgia Secretary of State’s firewall from last February into November’s election season. The letters to Roth and Johnson were released publicly on Jan. 17. The correspondence was spurred by Georgia’s Secretary of State Brian Kemp’s repeated letters to DHS asking the agency to provide more information on what he said were attempts to penetrate his agency’s firewall from “a DHS-registered IP address.” He said the attempts dated back to last February.

National: With morale in tatters, Federal Election Commission eyes changes | Center for Public Integrity

Federal Election Commission leaders — dogged by abysmal staff morale and a top manager improperly obtaining employees’ confidential critiques — are considering changes to how the agency operates in a bid to restore staff trust. Chief among them: the creation of a new “ombudsman” office dedicated to investigating and resolving staff complaints and internal conflicts, according to an internal proposal written by the agency’s chairman and obtained by the Center for Public Integrity. As written, the proposal further calls for formal, anonymous reviews of agency managers by subordinates, as well as better manager training.

National: Senate Panel to Probe Links Between Russia, Political Campaigns | Roll Call

January 16, 2017

The Senate Intelligence Committee’s inquiry into Russian intelligence operations against the United States will investigate any possible links between Russia and American political campaigns, the panel said Friday. The bipartisan investigation will also include a review of the American intelligence agencies’ assessment of what they say was Russian meddling in the 2016 election, including cyberattacks and other so-called active measures. But the committee’s statement Friday evening saying that it would also look into counterintelligence concerns stemming from the Kremlin’s interference, including “any intelligence regarding links between Russia and individuals associated with political campaigns,” marked a public shift for the panel.

National: Feinstein: Russia’s interference affected outcome of election | The Hill

January 16, 2017

Sen. Dianne Feinstein (D-Calif.) said Sunday that she believes Russia’s attempt to interfere in the United States presidential election had an impact on the ultimate outcome. “I think that, and I think the FBI, in the October surprise — I call it an October surprise, of announcing a subsequent investigation [into Hillary Clinton’s private email server], did have an impact,” Feinstein told NBC’s Meet the Press. “And I believe the Clinton people believe it did, too. They were polling and they were up, and all of that diminished.” Democrats have blasted FBI Director James Comey’s letter to lawmakers just before the election that said the FBI had obtained additional information potentially relevant to the investigation.

National: DHS Adds Elections Machines, Systems to Critical Infrastructure List | eWeek

January 13, 2017

The U.S. Department of Homeland Security designated the nation’s election technology and systems as critical infrastructure, giving state election officials access to technical and policy aid from the agency. The move, announced Jan. 6, makes the election infrastructure in the United States part of the government-facilities critical infrastructure sector, one of the 16 sectors deemed crucial by the U.S. government. Other sectors include health care, energy and the defense industrial base. While some states have reportedly opposed the designation, the DHS assured election officials that states would still have full oversight and responsibility for running elections. … Election-security groups have long called for the infrastructure to be designated critical. Verified Voting, a group of voting experts, pushed for election systems to be deemed critical since 2013, Pamela Smith, president of Verified Voting, told eWEEK in an e-mail.“Voting systems should receive at least as much attention and care as other critical infrastructure systems do,” Smith said.

National: Jeff Sessions views on voting rights debated by panel during confirmation hearing | AL.com

January 13, 2017

The Supreme Court’s 2013 decision to remove a vital piece of the 1965 Voting Rights Act returned to the fore Wednesday during an initial panel discussion at Jeff Sessions’ confirmation hearing as the next attorney general. But the morning hearing, during which issues of Sessions’ political and prosecutorial record were debated by his opponents and supporters, was overshadowed by the star power of the afternoon panel and the abrupt ending of their appearance. The afternoon hearing was adjourned after each panel member made introductory remarks. Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, ended the hearings and instructed everyone that written statements can be submitted into the record until Tuesday of next week. Beth Levin, a spokeswoman with Grassley, said a committee vote has not been set. She said that the committee cannot act until the nomination has been officially sent to Congress, “which can’t happen until after” President-elect Donald Trump is sworn into office on Jan. 20.

National: Trump Justice Department Likely to Shift Approach to Voting Rights | Newsweek

January 13, 2017

The U.S. Department of Justice sued the city of Eastpointe, Michigan, this week for discriminatory election methods that deny black residents the chance to elect black city council members. The city of about 35,000 is almost 40 percent black but no black candidate has ever won a contested election for city council, the local school board or even any legislative district that includes the city. That’s because the lack of electoral districts “dilutes the voting strength of black citizens,” violating the Voting Rights Act, the DOJ said in the complaint it filed Tuesday. But come January 20, the Trump DOJ will likely approach election cases completely differently, experts tell Newsweek. The same day the suit was filed against Eastpointe, senators questioned Donald Trump’s pick for attorney general, Sen. Jeff Sessions, about his views of the Voting Rights Act, which became law in 1965 and bars racial discrimination in voting. While answering a little-noted question about Texas voter ID laws, Sessions revealed one major way he differs from the attorneys general appointed by President Obama.

National: New Election Cyberprotections Cause Confusion and Concern | Governing

Amid ongoing investigations into how Russia may have used cyberhacking to influence the 2016 presidential election, the Obama administration added the nation’s elections systems to the list of “critical infrastructure.” The U.S. Department of Homeland Security’s (DHS) decision, which was announced last Friday, is meant to ensure that elections systems — which include voting machines, storage facilities and voter registration databases — are a high priority for federal cybersecurity assistance and protections. The need for heightened safeguards became clear last year when the FBI found that hackers infiltrated voter registration databases in Arizona and Illinois. In both cases, state officials later verified that voter information had not been altered. But in the case of Illinois, a hacker was able to steal personal information from nearly 90,000 voters. The decision to add elections systems to the list has caused confusion and concern among the state and local officials who handle U.S. elections.

National: Donald Trump Concedes Russia’s Interference in Election | The New York Times

President-elect Donald J. Trump on Wednesday conceded for the first time that Russia had carried out cyberattacks against the two major political parties during the presidential election, but he angrily rejected unsubstantiated reports that Moscow had gathered compromising personal and financial information about him that could be used for extortion. In a chaotic news conference in the lobby of Trump Tower in Manhattan nine days before he is to be sworn in as the nation’s 45th president, Mr. Trump compared United States intelligence officials to Nazis, sidestepped repeated questions about whether he or anyone in his presidential campaign had had contact with Russia during the campaign, and lashed out at the news media and political opponents, arguing that they were out to get him. “As far as hacking, I think it was Russia,” Mr. Trump said, his first comments accepting the conclusions of United States intelligence officials that Moscow had interfered in the election to help him win. But the president-elect expressed little outrage about that breach and seemed to cast doubt on Russia’s role moments after acknowledging it, asserting that “it could have been others also.”

National: Eric Holder to Lead Democrats’ Attack on Republican Gerrymandering | The New York Times

As he prepared last week to deliver his farewell address, President Obama convened three Democratic leaders in the White House for a strategy session on the future of their party. The quiet huddle included Senator Chuck Schumer of New York and Representative Nancy Pelosi of California, the top Democrats in Congress, and Gov. Terry McAuliffe of Virginia. One topic of urgent concern, according to people briefed on the meeting: how to break the Republican Party’s iron grip on the congressional map. Thwarted for much of his term by a confrontational Republican Congress, and criticized by his fellow Democrats for not devoting sufficient attention to their down-ballot candidates, Mr. Obama has decided to make the byzantine process of legislative redistricting a central political priority in his first years after the presidency.

National: ‘Soft Money’ Challenge Heads to Supreme Court | Bloomberg

The Supreme Court has been asked formally to review a challenge to restrictions on “soft money” contributions to political parties—the last remaining major element of the McCain-Feingold campaign finance law passed in 2002. The filing of a “jurisdictional statement” appealing to the high court had been expected since a lower court ruling last fall, which rejected the soft money challenge launched by the Republican Party of Louisiana. The party committee sued the Federal Election Commission, the agency that enforces restrictions on campaign money to national, state and local parties. The McCain-Feingold law—formally known as the Bipartisan Campaign Reform Act, or BCRA—requires party committees to use FEC-regulated “hard money” for activities affecting federal elections. Hard money includes only limited contributions and no corporate or union money for these activities.

National: State election officials blast ‘unprecedented’ DHS move to secure electoral system | Politico

January 10, 2017

State election officials on Monday denounced the Department of Homeland Security’s decision to label the country’s electoral system as “critical infrastructure.” The move, which DHS announced on Friday, puts the electoral system on par with the energy or financial sector, industries considered vital to national security and economic stability. On Monday, the National Association of Secretaries of State lashed out at the decision, saying it is “is legally and historically unprecedented, raising many questions and concerns for states and localities with authority over the administration of our voting process.” Secretaries of state oversee elections in most states. Several of these officials have expressed concerns that the “critical infrastructure” tag could presage a federal takeover of local elections.

National: Perez, candidate for DNC chair, calls for expanded voter protection | Baltimore Sun

January 10, 2017

U.S. Labor Secretary Thomas E. Perez, one of several candidates running to lead the Democratic National Committee, said Monday he would use the position to expand the party’s efforts to protect voters in the wake of ballot laws cropping up across the country. The Takoma Park resident, a former Montgomery County and Maryland state official, said the national party needs to take a more active role to ensure voters can cast a ballot, coordinating responses from state and national leaders and “playing offense” by expanding voter registration in every state. “We are going to establish a very robust protection and empowerment effort,” Perez told The Baltimore Sun on Monday, a day before he was to address the Maryland Democratic Party. “The DNC needs to play a very important role in combating [suppression] and ensuring all eligible voters can vote.”

National: U.S. intelligence report says Putin targeted presidential election to ‘harm’ Hillary Clinton’s chances | Los Angeles Times

Russian President Vladimir Putin personally ordered an intelligence operation against the U.S. presidential campaign and ultimately sought to help Donald Trump win the White House, according to a new U.S. intelligence report released Friday, shortly after the president-elect appeared to dismiss its key findings. Putin both “aspired to help” Trump in November and to “harm” Trump’s rival, Democratic nominee and former Secretary of State Hillary Clinton, with leaks of pilfered emails and other covert activities, the report concludes in a dramatic expansion of official U.S. accusations against the Kremlin. The report depicts the Russian operation as unprecedented, saying that an aggressive mix of digital thefts and leaks, fake news and propaganda represented “a significant escalation in directness, level of activity, and scope of effort” against a U.S. election campaign. Moscow’s goals “were to undermine public faith in the U.S. democratic process, denigrate Secretary Clinton, and harm her electability and potential presidency,” the report states. “We further assess Putin and the Russian government developed a clear preference for President-elect Trump.” They “aspired to help President-elect Trump’s election chances when possible by discrediting Secretary Clinton,” the report adds.

National: Five reasons intel community believes Russia interfered in election | The Hill

Donald Trump met with intelligence officials Friday for a private briefing on election hacking. Long a skeptic of Russia’s role in the attacks, he finally heard the unfiltered case that Moscow orchestrated breaches at the Democratic National Committee, Democratic National Campaign Committee and two states voter roles, as well as Hillary Clinton’s campaign chief John Podesta. A declassified version of the intelligence report soon followed. It shows the outline of the U.S. stance, including who did what and why, but does not show much in the way of evidence. Crowdstrike, the company brought in by the DNC to boot the hackers and investigate the report, has publicly released details about its investigation connecting Russian attackers known as Fancy Bear and Cozy Bear to the attacks.

National: Report on election hacking says Russia plans to do more | Associated Press

The new, declassified report on Russian efforts to influence the presidential election has a troublesome prediction: Russia isn’t done intruding in U.S. politics and policymaking. Immediately after Election Day, Russia began a “spear-phishing” campaign to try to trick people into revealing their email passwords, targeting U.S. government employees and think tanks that specialize in national security, defense and foreign policy, the report released on Friday said. “This campaign could provide material for future influence efforts as well as foreign intelligence collection on the incoming administration’s goals and plans,” the report said. That could prove awkward for President-elect Donald Trump. The president-elect wants to warm relations with Russia and has repeatedly denounced the intelligence community’s assessment that the Kremlin interfered in the election. The new report goes even further by explicitly tying Russian President Vladimir Putin to the meddling and saying Russia had a “clear preference” for Trump in his race against Hillary Clinton.

National: Trump’s bogus claim that intelligence report says Russia didn’t impact the 2016 election outcome | The Washington Post

The big, overarching reason that President-elect Donald Trump doesn’t want to accept the conclusions of the intelligence community about Russia’s alleged hacking is pretty simple: It would call into question whether he would have won the 2016 election without it. Trump is a winner, and it would hurt his brand. And he’s making that very clear right now — in a deceptive way. In a statement Friday afternoon and a tweet Saturday morning, Trump claimed that a. Russia had no actual influence on the election results and that b. the intelligence report says so. The first claim is unproveable; the second is just bogus. “While Russia, China, other countries, outside groups and people are consistently trying to break through the cyber infrastructure of our governmental institutions, businesses and organizations including the Democrat National Committee, there was absolutely no effect on the outcome of the election including the fact that there was no tampering whatsoever with voting machines,” Trump said in his Friday statement after receiving an intelligence briefing. Trump is using a clever bit of misdirection to argue that the report says something it doesn’t. The report does say voting machines weren’t hacked; it does not say there’s “no evidence that hacking affected the election results.” In fact, on the latter count, it says pretty clearly that it isn’t making any such determination.

National: Russian Intervention in American Election Was No One-Off | The New York Times