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Weekend Law: Powell Probe Dropped, SCOTUS & Religion in Schools | Bloomberg Law

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0:02

[music]

0:03

This is Bloomberg Law with June Graasso

0:06

from Bloomberg Radio.

0:09

About a month ago, the US Attorney for

0:11

DC, Janine Piro, professed that she

0:14

didn't care that Senator Tom Tillis was

0:17

opposing her controversial criminal

0:19

investigation into Federal Reserve Chair

0:22

Jerome Powell. She was moving forward.

0:25

>> You know, honestly, I don't know and I

0:28

don't care. And I'll tell you why. I am

0:30

in a legal lane.

0:33

All of the rest is white noise. I don't

0:36

care what they say. I have a job. I have

0:40

the ability to go into a grand jury.

0:43

There are questions that the American

0:46

public and people in DC are entitled to

0:48

know where a billion dollars has gone.

0:51

And on Wednesday, Piro doubled down and

0:54

again vowed to continue the

0:56

investigation into building renovation

0:59

cost overruns by the Fed and to appeal a

1:02

judge's order quashing her two grand

1:05

jury subpoenas. This investigation

1:08

continues. I am in the legal lane. There

1:11

are others who were in the political

1:12

lane. I don't intersect those two lanes.

1:16

I am going forward. We are appealing the

1:18

decision of Judge Boseberg. But then on

1:22

Friday, in a stunning reversal, Piro

1:25

said in a social media post that her

1:27

office was closing the investigation on

1:30

Powell, but that quote, "This morning,

1:32

the inspector general for the Federal

1:35

Reserve has been asked to scrutinize the

1:37

building costs overruns. In fact, the

1:40

IG's investigation began last year. Does

1:44

the end of Piro's investigation clear

1:47

the way for the confirmation of Kevin

1:49

Worsh as Fed chair? Even though Piro

1:52

added in her post, quote, "Note well,

1:55

however, that I will not hesitate to

1:58

restart a criminal investigation should

2:00

the facts warrant doing so." Joining me

2:03

is Elliot Stein, Bloomberg Intelligence

2:06

senior litigation analyst. Elliot, what

2:09

do you make of Piro's abrupt reversal?

2:12

Is it due to the lack of evidence or

2:14

pressure to clear the way for Walsh's

2:16

confirmation?

2:18

>> Probably a combination. I mean, you

2:20

know, the whole point of Judge Bowberg's

2:23

opinion quashing the subpoenas was that,

2:25

you know, there's very little evidence

2:26

of a crime versus a lot of evidence that

2:28

this is all a pretext to go after Powell

2:31

for not lowering interest rates. But

2:33

then you also have this whole Senator

2:35

Tillis dynamic and he has been very

2:38

forceful in saying that he's not going

2:40

to allow Wars to be confirmed until the

2:43

investigation is wrapped up. And you

2:46

know they're coming up on a May 15th

2:48

deadline which is when Chair Powell's

2:50

term ends as Federal Reserve chair. And

2:55

so I think they want to move things

2:57

along. They want to get Wars in there

2:58

and this is sort of the quickest path to

3:02

doing that. Although, you know, Janine

3:04

Piro did leave an opening for opening

3:07

the investigation down the road. So,

3:10

it's unclear right now if this is going

3:12

to be enough for Senator Tillis. I

3:14

suspect it probably is, but if I'm

3:16

Jerome Powell, I I would want a little

3:19

more assurance in the form of perhaps an

3:21

immunity agreement of some sort. Piro

3:23

appeared to be trying to gloss over the

3:26

implications of dropping the

3:28

investigation by saying that the

3:30

inspector general was now going to be

3:32

the one scrutinizing the cost overruns

3:36

and quote, "I expect a comprehensive

3:38

report in short order and am confident

3:41

the outcome will assist in resolving

3:44

once and for all the questions that led

3:46

this office to issue subpoenas. But in

3:49

fact, the IG has already reviewed the

3:52

project twice and started another review

3:55

last year because Powell had requested

3:57

it. So, does this seem like sort of a

3:59

dead end,

4:02

>> right? Yeah. I mean, we're sort of where

4:04

we were before the investigation

4:05

started, right? That it's still with the

4:07

inspector general and that and that's

4:09

what they do. And, you know, it sounds

4:11

like Janine Piro is sort of trying to

4:15

appease two camps here, right? On the

4:17

one, she obviously reports to President

4:19

Trump, who has been adamant about going

4:22

after Jerome Powell for several years

4:24

now, and he wants him out of the board

4:25

completely. On the other hand, she needs

4:28

to satisfy Senator Tillis, who has said,

4:31

you know, he's going to block the

4:33

confirmation of Kevin Worsh until the

4:34

investigation is wrapped up. So, you

4:36

know, her tweet sort of seems to try to

4:39

navigate right through both those sides

4:40

in that narrow passageway. And we'll see

4:43

if it's enough. I don't think we've

4:44

heard anything from Senator Tillis yet,

4:45

but I suspect maybe we will soon.

4:47

>> Let's back up for a moment, Elliot. What

4:50

is she investigating? The cost overruns

4:52

and possible perjury by Powell.

4:56

>> Right. Those are the the two things. I

4:58

think the testimony to me sort of seemed

5:02

to be more the impetus for her

5:04

investigation because the inspector

5:05

general is already investigating the

5:07

cost overruns for one. And you know,

5:09

they tried to accuse Powell of

5:12

essentially lying in his testimony to

5:16

the Senate last summer, but you know, it

5:18

seemed very nitpicky and sort of a

5:21

matter of semantics. Nothing approaching

5:24

a federal crime.

5:25

>> And proving perjury is not easy. You

5:27

have to prove that someone knowingly and

5:29

willfully made a false statement under

5:33

oath about a material matter. Yeah, it's

5:36

very hard to prove intent in one of

5:38

these types of cases.

5:39

>> And we know that as late as a month ago,

5:42

Piro's office essentially had no

5:45

evidence that Powell had committed a

5:47

crime because during a closed door

5:49

hearing with Judge Booseberg, the judge

5:53

who quashed their subpoenas, they

5:55

acknowledged they had no evidence but

5:57

said they wanted to go ahead with the

5:59

investigation anyway.

6:01

>> Right. Right. I mean, you know, in most

6:03

cases, that's sort of the purpose for

6:06

the subpoena, right? When you don't have

6:09

all these other things going on that

6:11

suggest it's a pretext, right? If you

6:13

have, you know, reasonable suspicion or

6:16

probable cause that that a crime was

6:17

committed, then you issue subpoenas to

6:19

develop the evidence further. But yeah,

6:22

to your point, the judge found, you

6:24

know, not only is there no evidence yet,

6:26

and not only did the Justice Department

6:28

concede that, you have to balance that

6:31

with the other side of the equation that

6:34

the subpoenas were issued for the

6:35

purpose of harassing Jerome Powell

6:37

because he's not lowering interest rates

6:39

fast enough. And the evidence of that

6:41

was overwhelming, according to the

6:43

judge.

6:44

>> Yeah. Judge Boseberg said there was no

6:46

evidence whatsoever that Powell had

6:49

committed any crime, but there was a

6:51

mountain of evidence that the

6:53

investigation was intended to pressure

6:55

Powell to lower rates or resign. And

6:58

this isn't the first time that Piro's

7:00

office has had trouble moving forward on

7:03

an indictment. Several times DC grand

7:06

juries have refused to indict,

7:08

disproving the old adage that a

7:11

prosecutor can get a grand jury to

7:13

indict a ham sandwich. They couldn't get

7:15

a grand jury to indict the guy who threw

7:18

the salami sandwich at an officer. And

7:21

there are other instances, including a

7:24

federal grand jury unanimously rejecting

7:27

charges against six members of Congress

7:30

for making that video reminding the

7:33

military that they don't have to follow

7:35

illegal orders.

7:36

>> Right. And it's not just her. In DC, I

7:39

think it was also in the Eastern

7:40

District of Virginia. You had subpoenas

7:43

issued and investigations opened against

7:45

Tesha James, James Comey. Those were

7:49

also essentially quashed or the grand

7:52

juries refused to indict. And you know

7:55

this case too against Jerome Powell if

7:57

it had proceeded it looked like it was

7:59

on a path to also not lead to an

8:02

indictment. So it does seem that you

8:04

know they are bringing weak cases.

8:08

They're obviously going after President

8:11

Trump's perceived political enemies. And

8:14

you know, if that's a justification,

8:16

it's an explanation for why there's not

8:18

evidence of a crime.

8:20

>> What also strikes me about this is that

8:23

Piro dropped the investigation by social

8:26

media post, but she held a press

8:29

conference to announce that Judge

8:32

Boseberg had quashed the subpoenas, a

8:35

loss many people would not want to

8:36

broadcast.

8:37

>> I remember watching that press

8:38

conference and and at the time it really

8:40

felt very performative. It felt like she

8:43

was defensive and you know, I'm sure

8:46

some of it was knowing that President

8:49

Trump was watching and that she wanted

8:51

him to know that she was continuing to

8:54

pursue this case aggressively against

8:56

Jerome Powell, who the president, you

8:58

know, is not happy with, hasn't been

9:00

happy with for a while. But what's

9:02

interesting is they filed a motion to

9:04

reconsider that opinion. They lost that

9:07

on April 3rd. They haven't appealed

9:11

those decisions to the DC circuit at

9:13

all. And you would think that if they

9:16

really wanted to move the case along and

9:18

continued to prosecute it, they would

9:20

have done that. We haven't seen that.

9:22

The the deadline um is 2 months from

9:25

that April 3rd date where the motion to

9:26

reconsider was denied. I mean, they do

9:28

have until June 3rd. Obviously, we don't

9:31

expect that to happen now that they're

9:32

dropping the probe, but it may be a date

9:35

that gives Jerome Powell some comfort.

9:37

If it comes and goes and it results in

9:39

no appeal being filed, it may give him

9:42

some comfort that the investigation

9:43

really is being dropped because they're

9:46

not going to be able to really revive

9:48

those subpoenas. I suppose in theory,

9:50

they could issue new subpoenas that

9:52

cover different subject matter and

9:54

different terrain, but it's hard to

9:56

envision what that looks like. But I

9:58

mean the real question, you know, the

10:00

two people that you really need to get

10:02

inside the heads of at this point right

10:03

now are Senator Tillis and Jerome Powell

10:06

and whether Janine Piro's tweets are

10:09

enough to give them assurance that the

10:12

investigation is not going to be

10:13

relaunched at some point down the road

10:16

after Kevin Wars gets confirmed in the

10:18

coming weeks. And in other Fed news, we

10:21

are still waiting for the Supreme

10:23

Court's decision on President Trump's

10:26

attempts to fire Fed Reserve Governor

10:28

Lisa Cook over unproven mortgage fraud

10:32

allegations. Those oral arguments were

10:34

in January. And every time there's an

10:36

announcement of decisions by the Supreme

10:39

Court, we keep expecting that the Cook

10:42

decision will be among them.

10:44

>> Yeah, exactly. I was on the soccer

10:45

fields down in North Carolina this last

10:47

Friday at 10:00 a.m. when when it was a

10:49

Supreme Court opinion date and I have

10:50

one eye on my daughter playing. I have

10:52

one eye on my phone and I I was just so

10:54

relieved when it was not that decision.

10:57

I think one of the reasons it may be

10:59

taking longer than people uh anticipated

11:02

is that it's sort of wrapped up with the

11:04

Slaughter case. Rebecca Slaughter, if

11:06

you recall, is the FTC commissioner who

11:08

also challenged her termination. And

11:11

these cases are all sort of wrapped up

11:13

together because the Supreme Court has

11:15

indicated that even though the president

11:17

likely has the authority to remove most

11:21

agency commissioners at will and that

11:23

for cause removal restrictions as to

11:25

them is unconstitutional. The Federal

11:28

Reserve is situated differently because

11:30

it's sort of quasi private. It's not

11:31

really part of the executive branch and

11:33

as a result the four cause removal

11:35

restriction in the Federal Reserve Act

11:37

is likely constitutional. The only

11:39

question is what does it actually

11:40

entail?

11:41

>> Maybe next Supreme Court opinion day,

11:43

the Cook decision will come out. Thanks

11:45

so much for joining me today, Elliot.

11:47

That's Bloomberg Intelligence senior

11:49

litigation analyst Elliot Stein. Coming

11:52

up next, revelations from behind the

11:54

curtain at the Supreme Court. I'm June

11:57

Graasso and this is Bloomberg.

12:01

Chief Justice John Roberts has long

12:04

cultivated an image of the Supreme Court

12:06

as an institution above politics. Nine

12:10

justices who reach their decisions based

12:13

on the law alone.

12:15

>> I think the important thing to

12:16

understand is that there three branches

12:19

of government and two of them are

12:20

political. Uh and if you don't like what

12:23

the Congress is doing, your congressman,

12:25

you can throw him out of office. If you

12:27

don't like what the president is doing

12:28

can throw him out of office. If you

12:30

don't like what I'm doing, it's just too

12:32

bad. And now most people would say, "How

12:37

can that be? You do, you know, the cases

12:39

are pretty important, and you need to

12:40

understand, well, it's because the

12:42

framers didn't want the courts to be

12:44

making political decisions."

12:45

>> And Roberts famously compared justices

12:48

to umpires at his confirmation hearings

12:51

more than 20 years ago.

12:53

>> Judges are like umpires. Umpires don't

12:56

make the rules, they apply them. The

12:59

role of an umpire and a judge is

13:01

critical. They make sure everybody plays

13:04

by the rules, but it is a limited role.

13:08

Nobody ever went to a ball game to see

13:09

the umpire.

13:10

>> But the New York Times has published

13:13

leaked confidential memos between the

13:15

justices and they reveal a very

13:18

different side of Roberts. Certainly not

13:21

an umpire calling balls and strikes, but

13:24

rather the driving force to block

13:27

President Obama's signature

13:29

environmental policy, pushing the

13:31

decision through in just 5 days without

13:35

oral arguments, without briefings, and

13:38

without input from lower court

13:39

decisions. Why? because Obama's power

13:43

plan, in Robert's words, was quote the

13:46

most expensive regulation ever imposed

13:49

on the power sector. And so on February

13:52

9th of 2016 in a 5 to4 vote along

13:56

partisan lines, the justices issued a

13:59

one paragraph ruling halting Obama's

14:02

clean power plan. It was just the

14:05

beginning of the court's emergency or

14:08

shadow docket that has been repeatedly

14:10

used to move President Trump's agenda

14:13

forward. My guest is an expert in

14:16

constitutional law, Harold Krent, a

14:18

professor at the Chicago Kent College of

14:20

Law. House. So, the New York Times has

14:22

published these until now secret memos

14:26

about the five days before the Supreme

14:28

Court issued an order blocking President

14:32

Obama's clean power plant. Tell us what

14:35

happened.

14:36

>> So, the court never blocked the power

14:39

plant on the merits, but rather used its

14:42

power to to stop the action before they

14:44

could even hear the case. And so they

14:47

deployed their power to basically

14:50

protect individuals in the United States

14:52

from what they saw as overreaching by

14:54

the Obama administration. So this is an

14:57

overtly political move because they

14:59

didn't like the power plan and the memos

15:03

against the fact that they thought that

15:04

there shouldn't be this much of a drain

15:07

on the economy in order to protect the

15:11

environment. And so the way it reads is

15:14

that the Supreme Court was overtly

15:16

political in deciding to resolve this

15:19

case not on the merits but rather simply

15:22

on the basis of its emergency docket

15:25

thereby stopping the plan before it

15:27

could be effectuated.

15:28

>> So this was pushed through in 5 days and

15:32

some of the justices were in Europe. So,

15:35

it was all done by exchanging memos. And

15:38

from your reading of those memos, did it

15:41

seem like the chief justice was the one

15:44

really pushing it through?

15:46

>> And what astonishes me is that we know

15:48

that for years the chief justice stood

15:51

and said, "Integrity of the court is my

15:54

mission. This is the most important

15:55

thing to me." So, we have stature. Yet

15:57

it was the chief who decided to use the

16:01

power of the Supreme Court to try to

16:03

attain his political ends. So this to me

16:06

is what is so amazing is that while the

16:08

chief seemed to have this public persona

16:11

of respect and integrity of the court,

16:13

he was the one that instigated the

16:16

unorthodox use of the court in order to

16:19

accomplish a political result. Did it

16:21

seem as if some of the justices didn't

16:24

recognize, you know, the importance of

16:27

what was happening here?

16:28

>> In retrospect, I think we could all tell

16:30

this was the start of the aggressive use

16:32

by the robber's court of the shadow

16:34

docket. But the justices of the time

16:36

didn't know that. They thought maybe

16:38

this was a one-off. The the court was

16:40

not in session. They were in various

16:42

places around the world. And so they

16:45

could have said this is a one-off, a

16:48

unique response that wouldn't create any

16:50

kind of precedent. That's what it seemed

16:51

to me from reading the memos. Obviously,

16:53

now with a lens of history, we look back

16:56

and say we can see a linear progression,

16:58

the use of the power of the Supreme

17:00

Court for various political ends has

17:02

become much more common. But at that

17:04

time, it was rare. And I don't think the

17:07

justices realize what a precedent this

17:09

could create. So the chief justice said

17:13

that this was the most expensive

17:15

regulation ever imposed on the power

17:17

sector. Too big, costly, and

17:19

consequential for the court not to act

17:21

immediately. Yet no justice, not a

17:24

liberal, not a conservative ever

17:26

mentioned the dangers on the opposite

17:28

side of climate change.

17:31

>> Yeah, there's no discussion of climate

17:32

change. There was no discussion of

17:34

letting the challenges to the regulation

17:36

play out in court. This wasn't a

17:38

discussion of the usual legality of an

17:42

administrative action. This was a

17:45

political reaction to the Obama

17:47

administration saying this is too

17:49

extensive, too much, and no

17:51

consideration of the equities on the

17:53

other side. It's astonishing

17:55

>> the irony. So, Justice Kennedy figures

17:58

that, you know, well, when we take this

18:00

on the merits docket, it's going to end

18:02

up being struck down anyway. But then

18:05

Justice Scalia passed away and so the

18:08

vote on the power plan would most likely

18:11

have been 44 and so Obama's power plan

18:15

would have gone into effect.

18:18

>> Likely. Obviously, we don't know because

18:19

we're deprived of that knowledge because

18:21

of how history played out. The other

18:23

thing that's amazing about this is why

18:25

the leak now, you know, is this a leak

18:28

from clerks who have hoarded this

18:31

material for 10 years? Is this a leak

18:35

from the Supreme Court justice that's

18:36

more and more frustrated with how the

18:38

court is acting? We don't know, but it

18:41

certainly suggests that tensions are a

18:44

flame within the Supreme Court building.

18:47

>> Well, we've seen that with the various

18:49

justices. I mean, we saw Sodtoayor

18:52

criticizing Kavanaaugh and then coming

18:54

out with an apology. We saw Jackson and

18:57

Kavanaaugh quibbling about the shadow

19:00

docket in a public appearance and

19:02

Jackson giving an hour-long speech at

19:05

Yale Law School basically taking the

19:07

shadow docket apart and criticizing it.

19:11

So, it seems like the tensions are

19:14

pretty much out in the open.

19:16

>> Yeah. And this idea of, you know, the

19:18

friendship between RBG and Justice

19:20

Scalia is, you know, a thing of the

19:22

distant past. And obviously these

19:25

justices don't like each other. They're

19:27

sniping at each other. And now they're

19:29

arguably possibly making leaks. So we

19:31

don't have a very unified or collegial

19:32

court.

19:33

>> I've asked you often in the past, how

19:35

much are the justices influenced by

19:38

public discussions of the issues, public

19:40

discourse. And here they're relying on

19:43

outside sources like a blog post and

19:46

television interviews to push their

19:48

points. We try to teach our students,

19:51

you know, that Supreme Court justices

19:53

consider, they deliberate, they're

19:56

influenced by their predecessors, they

19:58

try to understand the integrity of the

20:01

legal process. And then we're confronted

20:03

by these memos, the disperate memos that

20:07

seem to suggest, oh, it's all about

20:09

politics and our knee-jerk reaction to

20:11

what we think is dangerous for politics.

20:14

So, they're acting as politicians. So

20:17

what then differentiates the court from

20:20

the other institutions is getting a

20:22

little muddier here. And I think that's

20:23

the real downside of what they've done

20:26

is to sap the Supreme Court of the

20:29

respect that it should otherwise deserve

20:31

in our part system.

20:33

>> Yeah. And how many times have we heard

20:35

the Chief Justice talk about the Supreme

20:38

Court is not a political institution.

20:41

We're different from the political

20:42

branches. And here it's all about

20:45

politics.

20:46

>> It is. And again, I can understand why

20:49

people are disillusioned because if the

20:51

court is thinking about politics, you

20:54

know, what gives them the advantage as

20:56

opposed to those in Congress.

20:58

>> Was this in any sense President Obama

21:02

versus Chief Justice Roberts? Because I

21:05

mean, Obama was one of just 22 senators

21:08

who voted against Robert's confirmation.

21:11

And here it seems like the Chief Justice

21:13

is eager to assert the authority of the

21:17

Supreme Court against Obama.

21:20

>> I don't know how much of this is a

21:22

reaction to the friction between Chief

21:24

Justice Roberts and President Obama. I

21:27

think it's more about President Obama's

21:29

policies that he just thought that the

21:31

Democrat was wrongheaded in trying to

21:35

sort of quickly change the ground in

21:37

terms of climate change and limiting

21:40

pollution and saw his responsibility as

21:44

a court to do something about the rapid

21:47

change that was at play within the

21:50

Environmental Protection Agency. Do you

21:53

think that there'll be any fallout from

21:55

this publication of these notes?

21:58

>> Well, we saw that the first DOS

21:59

decision, if you remember, was released

22:02

by someone and we knew what the top

22:04

decision was going to say over ruling

22:06

their right to an abortion and tighter

22:09

security was imposed, but nothing really

22:11

happened. Again, we don't know if the

22:12

leak is from now or from 10 years ago.

22:15

There may be some more security, but I

22:17

think now in this age, there won't be

22:20

too many more steps that can be

22:21

undertaken by the court to prevent this

22:24

kind of leaking, but the leaking isn't

22:27

good for the court. Clearly, this is a

22:29

court that has lost its civility, but

22:33

also its ability to be colleial. And

22:36

also I'm wondering if since now we have

22:38

this huge leak, you mentioned the leak

22:41

before, whether the justices will be

22:44

more reluctant to put things into

22:46

writing that can be leaked.

22:48

>> Oh, absolutely. I think that if you know

22:50

that your rough draft and your comments,

22:52

snider or otherwise, may end up in the

22:55

New York Times, you're going to think

22:57

twice before you write that down. And

22:59

that's also not good for the court,

23:00

right? Sometimes it's really important

23:01

to have a sharply worded memo, some kind

23:04

of comments about the wisdom of a

23:07

particular argument that another justice

23:09

may write and the justices will be more

23:11

restrained in showing cander for fear of

23:14

the disclosure. And how I want to get

23:16

your reaction to this speech by Justice

23:18

Thomas ostensibly to commemorate the

23:21

250th anniversary of the Declaration of

23:25

Independence, but it devolved into an

23:28

attack on progressivism.

23:30

>> Progressivism seeks to replace the basic

23:33

premises of the Declaration of

23:35

Independence and hence our form of

23:38

government. Thomas said that Stalin,

23:41

Hitler, Mussolini, and Mao were all

23:44

intertwined with the rise of

23:46

progressivism as was racial segregation,

23:49

eugenics, and other evils.

23:52

>> I do think there's a tie here both with

23:54

the Roberts decision and with Thomas,

23:57

there is such a deep-seated hatred for

24:00

the administrative state and Justice

24:02

Thomas calls it progressivism. What he's

24:04

talking about is this idea of these

24:06

experts in government and both Chief

24:09

Justice Roberts and Justice Thomas sort

24:12

of events a real distrust for anybody

24:15

who believes in bureaucratic government.

24:18

Anybody who relies upon the government

24:20

to actually respond to our nation's woes

24:24

and to try to help the country.

24:26

>> Well, the Roberts court's attacks on the

24:28

administrative state have been pretty

24:30

clear. Thanks, Hal. That's Professor

24:32

Harold Krent of the Chicago Kent College

24:34

of Law. Coming up next, an appela court

24:37

rules it's okay to force schools to post

24:40

the Ten Commandments in classrooms. I'm

24:42

June Grao and you're listening to

24:44

Bloomberg.

24:47

President Trump cheered laws requiring

24:49

the Ten Commandments to be displayed in

24:51

schools while speaking to a group of

24:54

evangelical Christians as he campaigned

24:56

in 2024.

24:58

Who likes the Ten Commandments, by the

25:00

way, going up in the schools? [cheering]

25:04

[applause]

25:05

They think it's such a bad thing. I

25:06

said, "Has anyone read the thou shalt

25:09

not steal, thou shalt I mean, has

25:12

anybody read this incredible stuff?"

25:15

It's just incredible. They don't want it

25:17

to go up. And now in a significant win

25:20

for conservatives who've been trying to

25:22

inject more religion into classrooms,

25:25

the fifth circuit court of appeals has

25:27

ruled that Texas can force public

25:29

schools to display the Ten Commandments

25:32

in classrooms. A 9 to8 decision of the

25:35

full appellet court considered the most

25:38

conservative circuit court in the

25:39

country found that the Texas law doesn't

25:42

violate the separation of church and

25:44

state. Challenges of the law had argued

25:47

that displaying the Ten Commandments in

25:49

classrooms amounts to procilitizing and

25:52

violates the rights of parents to decide

25:55

when, how, and if to provide religious

25:57

instruction to their children. The case

26:00

is expected to end up at the Supreme

26:02

Court where the conservative majority

26:05

has steadily been expanding religious

26:07

rights. My guest is an expert in the

26:10

First Amendment, Caroline Mala Corbin, a

26:12

professor at the University of Miami Law

26:15

School. Caroline, to put this case into

26:17

context, tell us about the Texas law and

26:20

Supreme Court president. So, the Texas

26:22

law is pretty straightforward. It

26:25

basically required that in every single

26:28

public school classroom, there had to be

26:32

a Ten Commandments poster. It had to be

26:35

sufficiently large, easy to read, easy

26:38

to see. There couldn't be anything else

26:40

around it. And they dictated the

26:43

particular version of the Ten

26:44

Commandments. Now, it's not surprising

26:47

that this mandatory scripture on the

26:49

wall triggered an establishment clause

26:51

violation. The establishment clause, of

26:54

course, is that part of the first

26:56

amendment of the US Constitution, which

26:58

requires some separation between church

27:00

and state. Texas was not the first state

27:03

to mandate ten commandments in the

27:05

public schools. Kentucky had tried the

27:08

same thing about 45 years ago and the

27:10

Supreme Court had already made a

27:12

decision about it in a case known as

27:15

Stone V. Graham, the Supreme Court held

27:18

this is a blatant violation of the

27:21

establishment clause. There is no

27:23

secular purpose for mandating biblical

27:26

texts on school room walls when you're

27:28

not even incorporating it into any kind

27:31

of secular education. It is

27:34

unconstitutional. So there is a case

27:36

directly on point that holds this kind

27:39

of law violates the establishment

27:40

clause. Unfortunately, the precedent

27:43

doesn't stop there because the Roberts

27:46

court has been very busy trying to

27:49

dismantle protections of the

27:51

establishment clause. And one way it's

27:54

been doing that is by rejecting earlier

27:57

tests that the Supreme Court has relied

28:00

on. And the doctrine that was part of

28:03

the decision in the earlier ten

28:05

commandments case was something known as

28:08

the lemon test. And the lemon test said,

28:10

"Listen, you're violating the

28:12

establishment clause if your law doesn't

28:15

have a primarily secular purpose or it

28:17

doesn't have a primarily secular

28:18

effect." And the Roberts court has said,

28:22

"This is no longer the test we're going

28:25

to use in the establishment clause.

28:28

Instead, the touchstone for an

28:30

establishment clause analysis is to look

28:33

to history and original understandings."

28:36

And so this is what faced the fifth

28:39

circuit court of appeals.

28:41

>> Only the Supreme Court can overturn its

28:43

own precedent. So isn't strong v. Graham

28:47

still the president?

28:49

>> Now the courts below had said, listen,

28:52

there's still a Supreme Court case

28:54

that's directly on point. It has not

28:56

been explicitly overruled and therefore

28:59

it still controls and therefore this is

29:03

not a difficult case. The fifth circuit,

29:06

on the other hand, argued the president

29:10

depended on a test that has since been

29:13

rejected. And not only did it reject

29:17

Stone Graham as controlling precedent,

29:19

it interpreted the Supreme Court

29:22

guidance to look to history and

29:26

understanding in a very narrow way. It

29:29

basically adapted a concurrence from

29:32

Gorsuch that said, and this was the

29:34

fifth circuit's new rule for

29:36

establishment clause challenges, is if

29:39

this does not resemble something the

29:43

original founders would consider a

29:45

religious establishment, then it doesn't

29:48

violate the establishment clause. And

29:50

there was a short list of things. It

29:52

said these are the things that the

29:54

founders thought was a religious

29:56

establishment and this does not resemble

29:58

any of them and therefore it doesn't

30:01

violate the establishment clause. So

30:04

that's what it held. It rejected the

30:07

Supreme Court's existing precedent. It

30:10

interpreted the Supreme Court's turn to

30:12

history in a very particular narrow way

30:15

and said this does not resemble

30:18

something that was an establishment at

30:20

the time of our country's origins and

30:22

therefore

30:24

no problem whatsoever to have a

30:28

Protestant version of the Ten

30:30

Commandments on every single classroom

30:32

in every single public school in Texas,

30:35

regardless of whether it's the science

30:37

lab or the library or the music room or

30:40

your English class.

30:41

>> Caroline, what also struck me is that

30:43

there was that Supreme Court case,

30:45

Mammud, that you and I discussed at the

30:48

time saying that parents could opt their

30:51

children out of LGBTQ material that

30:54

contradicted their religious beliefs.

30:56

And here the fifth circuit said the

30:59

measure doesn't restrict parents' right

31:01

to direct their children's religious

31:03

upbringing. I mean, how do they possibly

31:05

distinguish that case? So, this is the

31:08

case involving picture books with LGBT

31:11

characters in them that were part of the

31:14

English curriculum in some public

31:16

schools. And some conservative religious

31:19

folks claimed that having their children

31:22

hear these stories about same-sex

31:25

marriage when that same-sex marriage was

31:28

not condemned violated their religious

31:31

rights. and therefore they had a free

31:34

exercise right to opt their children out

31:36

of hearing their stories. And the

31:38

Supreme Court always sympathetic to very

31:42

conservative Christian concerns said

31:44

absolutely it's a violation of your free

31:47

exercise rights for your child to be

31:49

exposed to same-sex marriages in a

31:53

positive way because that's contrary to

31:55

your anti-samesex marriage beliefs and

31:58

you are allowed to opt out. And so,

32:00

isn't this an even more direct affront

32:03

to non-inherence beliefs to be presented

32:07

with the Ten Commandments everywhere

32:10

they turned, which is contrary to their

32:12

own beliefs. Like, it clashes just like

32:14

the same-sex marriage clashes with my

32:17

beliefs, the Ten Commandments clashes

32:19

even more directly because they're

32:21

religious. And surely the Mimmude case

32:25

would support the approach to the ten

32:28

commandments as something problematic

32:30

and something that should not be

32:31

allowed. The fifth circuit distinguished

32:34

it in two ways. They exaggerated the

32:38

harm to the parents in Mimmude and they

32:41

ignored the harms to the parents who

32:44

oppose the ten commandments. The other

32:46

thing as one of the descent points out

32:48

that they completely ignore is that the

32:51

Supreme Court has historically been very

32:55

mindful of the establishment clause in

32:59

the public school context for several

33:02

reasons. One, the state requires

33:05

children to be there. So, they're

33:07

already using coercion and requiring

33:10

their attendance. Second, these are

33:12

young children. These are impressionable

33:14

children and they're very influenced by

33:17

what happens in school. They're very

33:19

influenced by their teachers, by their

33:21

peers. There's a lot of pressure on them

33:23

to conform. And third, this whole idea

33:26

is parents are trusting them to schools

33:29

on the understanding that they're not

33:31

going to try and inculcate them in a

33:33

religion not their own. And so even when

33:36

the Supreme Court was moving away from

33:40

more protection under the establishment

33:42

clause, it has historically been

33:45

especially careful when it comes to

33:48

children in public schools. And there

33:51

was zero mention of that in the

33:53

majority's opinion. Although the Supreme

33:56

Court has allowed a high school football

33:58

coach to pray on the 50ard line right

34:01

after games, saying his players wouldn't

34:04

feel coerced to pray alongside him. So,

34:08

not if, but when this gets to the

34:10

Supreme Court, how do you think they'll

34:12

rule? I have little confidence in a

34:15

principal decision from the current

34:17

Supreme Court when it comes especially

34:20

to issues involving the rights of

34:23

conservative Christians and doing what

34:25

they want. Right? I think it's a white

34:26

Christian nationalist court. I think

34:28

they'll decide whatever is favorable to

34:30

white Christian nationalists. So, I

34:32

think that they would probably end up

34:35

upholding this law. Now, there are a lot

34:37

of different tactics that they might use

34:40

to do it. They might not do what the

34:43

fifth circuit did. They might try and

34:45

dodge it by not finding standing. They

34:49

might do it by something I call secular

34:52

washing. What they might try to argue is

34:55

that the Ten Commandments is not

34:57

ultimately a religious doctrine, but a

35:00

secular item. It's not about inculcating

35:04

particular religious beliefs. It's about

35:07

explaining or showing the role of

35:09

religion in our nation's history, trying

35:13

to make clear the origins of our

35:16

political structure or law. None of

35:18

that's true. But one thing the Supreme

35:20

Court has done in other cases where

35:23

there is some object that's obviously

35:26

inherently religious and therefore

35:28

should be problematic under the

35:30

establishment clause is the court has

35:32

said, "No, no, no. This is not actually

35:34

religious like you think. So it's not a

35:36

problem like you think. And one

35:37

particular case that comes to mind is a

35:40

challenge to the very large Latin cross

35:43

monument in the middle of the highway.

35:45

And you think that's the preeminent

35:47

symbol of Christianity. And the court

35:49

was like, "No, no, no, no, no, no. It's

35:51

not. You you don't understand. It's

35:54

actually just a symbol of World War I.

35:57

And therefore there's no problem with

36:01

it." And they've done that with the Ten

36:03

Commandments as well. They've already

36:04

laid the groundwork for arguing that the

36:07

Ten Commandments is not religious

36:09

scripture. It's not trying to procitize.

36:12

It's an educational document about our

36:14

country's history and the origins of our

36:18

law and government.

36:20

>> Well, it will certainly be a while

36:21

before this gets up to the Supreme Court

36:23

and we find out the answer to that

36:25

question. It's always great to have you

36:27

on, Caroline. Thanks so much. That's

36:29

Professor Caroline Malac Corbin of the

36:31

University of Miami Law School. And

36:34

that's it for this edition of the

36:35

Bloomberg Law Show. Remember, you can

36:37

always get the latest legal news on our

36:39

Bloomberg Law podcast. You can find them

36:41

on Apple Podcast, Spotify, and at

36:44

www.bloomberg.com/mpodcast/law.

36:49

And remember to tune in to the Bloomberg

36:50

Law Show every week night at 1000 p.m.

36:53

Wall Street time. [music]

36:54

I'm June Graasso and you're listening to

36:56

Bloomberg.

Interactive Summary

This episode of Bloomberg Law covers three major legal topics: the controversial and ultimately dropped investigation into Fed Chair Jerome Powell, the revelation of 'shadow docket' political maneuvers by the Supreme Court via leaked memos from 2016, and the Fifth Circuit's ruling allowing Texas schools to display the Ten Commandments.

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