Trump taps Wall Street and Washington for latest cabinet picks
Fierce Obamacare critic selected to oversee health care
President-elect Donald Trump is tapping a trio of nominees with deep ties to Washington and Wall Street to fill out his cabinet, including former Goldman Sachs executive Steven Mnuchin as treasury secretary.
On Tuesday, Trump also chose Georgia Representative Tom Price to oversee the nation's health-care system, picking a fierce "Obamacare" critic who has championed efforts to privatize Medicare. And he selected another veteran Republican, Elaine Chao, to lead the Department of Transportation.
Mnuchin's official announcement was expected as early as Wednesday, according to a person familiar with the decision who insisted on anonymity in order to confirm the pick ahead of time.
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Mnuchin, 53, led Trump's finance operations during the presidential campaign and became close with the president-elect and his family. But he has no government experience, which could prove a hurdle in navigating the tricky politics of Washington.
Price, picked to lead the Department of Health and Human Services after more than a decade in Congress, helped craft House Speaker Paul Ryan's plan to privatize Medicare — a position Trump opposed in the campaign. Chao, who was the first Asian-American woman to serve in a president's cabinet — she served under George W. Bush — is married to Senate majority leader Mitch McConnell.
The selections came as Trump spent Tuesday with advisers in his Manhattan skyscraper, racing through meetings with prospective administration hires as high-profile vacancies loom — none bigger than secretary of state. Former Massachusetts governor Mitt Romney, on the short list for the nation's chief diplomat, was to have a private dinner with the incoming president.
At the same time, Green Party presidential candidate Jill Stein delivered $3.5 million to the state of Wisconsin to guarantee a recount in one of the states that fuelled Trump's unexpected victory. Stein, who is also pursuing recounts in Pennsylvania and Michigan, has raised concerns that the results may have been hacked.
Trump has assailed the Green Party effort as a scam and separately has made unsupported claims of voter fraud in other states.
Questions over Medicare
Meanwhile, Price's selection raised questions about the incoming president's commitment to Medicare, among other popular entitlement programs he repeatedly vowed to preserve before the election. The Georgia congressman led Republican efforts on Capitol Hill to transform Medicare into a voucher-like system, a change that, if enacted, would likely dramatically reduce government spending on the health-care program that serves an estimated 57 million people.
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Trump did not address Price's position on Medicare in a statement released by his transition team. The team did not respond to subsequent questions about it.
"Chairman Price, a renowned physician, has earned a reputation for being a tireless problem solver and the go-to expert on health-care policy, making him the ideal choice to serve in this capacity," Trump said in a statement. "He is exceptionally qualified to shepherd our commitment to repeal and replace Obamacare and bring affordable and accessible health care to every American."
Trump, in a 2015 interview promoted on his campaign website, pledged not to cut expensive entitlement programs that Republicans have fought for years to cut to help reduce the federal deficit.
"I'm not going to cut Social Security like every other Republican. And I'm not going to cut Medicare or Medicaid. Every other Republican's going to cut," Trump told the Daily Signal.
He later changed his mind on Medicaid, embracing the Republican concept of turning the program over to the states with a fixed amount of federal "block grant" funding.
Like any cabinet official, Price would carry out the wishes of the president. And a sweeping Medicare initiative would have to go through Congress with some Democratic support, which would be unlikely.
Vermont Senator Bernie Sanders charged that Price "has a long history of wanting to do exactly the opposite of what Trump campaigned on."
"Representative Price has a long history of wanting to cut Social Security, Medicare and Medicaid. What hypocrisy!" Sanders said in a statement.
Former labour secretary
Like Price, Chao is well-known in Washington, having led the Department of Labour for several years.
Her record as labour secretary suggests she would bring a light hand to safety enforcement as transportation secretary. Under Chao at Labour, the Occupational Safety and Health Administration didn't issue a single significant new safety regulation for four years. Mine safety inspectors were cut and inspections reduced.
Whether it's integrating drones into the national airspace, deploying self-driving cars or "some other new technology, she's not going to be especially inclined to second guess the industry when they say that this will be safe," said Thomas McGarity, a University of Texas law professor and author of Freedom to Harm, a book about the Labour Department that includes Chao's tenure.
Both Price and Chao would require Senate confirmation.
Dinner and distractions
The president-elect summoned Romney for dinner Tuesday night to discuss the secretary of state job for a second time. He also met with Tennessee Senator Bob Corker, chairman of the Senate foreign relations committee, having met with former CIA director David Petraeus the day before.
After his meeting, Corker told reporters, "The world needs to know that the secretary of state is someone who speaks fully for the president," a possible jab at Romney, who aggressively opposed Trump's candidacy.
Transition aides said Trump was likely at least a few days away from a decision.
Even as he weighed crucial cabinet decisions, Trump appeared distracted by outside issues — or eager to create distractions himself. He tweeted that "nobody should be allowed to burn the American flag." He warned that those who do should face "perhaps loss of citizenship or year in jail!"
Nobody should be allowed to burn the American flag - if they do, there must be consequences - perhaps loss of citizenship or year in jail!—@realDonaldTrump
Trump offered no context for his message. The Supreme Court has ruled that flag burning is protected by the First Amendment, and Republican House majority leader Kevin McCarthy said Tuesday he doesn't support Trump's approach.
"I support the First Amendment," he said.
Trump's team also announced that Seema Verma has been chosen to be administrator of the Centers for Medicare and Medicaid Services.