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Jeff Zients, the next White House chief of staff, speaking during a press briefing at the White … [+]
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The Biden Administration is undergoing a corporate reorg inside the West Wing. It’s coming from an unlikely source.
White House Chief of Staff Ron Klain is resigning, with his last day expected to be February 8. In his place will be Jeff Zients, a former consultant at Bain & Company.
President Joe Biden once was no fan of the Bain brand. In 2012 as vice president, he was the attack dog against GOP-nominee Mitt Romney’s experience leading the private equity firm Bain Capital. “Folks, the Bain way may bring your firm the highest profit,” Biden said at the 2012 Democratic National Convention. “But it’s not the way to lead your country from its highest office.”
Today, the highest office in the country is getting an infusion of the Bain way.
“When I ran for office, I promised to make government work for the American people,” Biden said in a statement announcing his second chief of staff. “That’s what Jeff does. A big task ahead is now implementing the laws we’ve gotten passed efficiently and fairly.”
For what it’s worth, Mr. Bain approves. On the elevation of Zients to chief of staff, now-Senator Mitt Romney (R-Utah) said, “I respect him enormously. He’s a very bright guy. I expect to be able to communicate with him.”
The “I” word in Washington, D.C. depends on who you ask. Republicans scream, “Impeach!” Moderate senators in tough re-election races say, “Independence!” For Biden, he’s crowing, “Implement!” (and ice cream). The first two years for Biden and Democrats were about getting legislation passed, executive orders issued, and proposed rules written. The next two years are about implementing the legislation, turning the executive orders into action, and finalizing rules. It’s the Bain way.
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Zients may not be as big of a politico as Klain, but “implementing” is the slogan of a likely Biden re-election. There’s a two-prong case for a Biden campaign. On the positive side, Biden wants to show that a lower-case democratic government can work for Americans. Nothing will make Biden happier than crisscrossing the country at ribbon cutting ceremonies for the hundreds of billions awaiting deployment from the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act. Smooth implementation will be impactful to investors in infrastructure, the electric vehicle supply chain, and pharmaceuticals.
On the negative side, Biden wants to contrast his implementing success with the inaction and perceived extremism of House Republicans. While the GOP is risking default and engaging in political investigations, Biden will say he is working for the American people. It’s a contrast former incumbents have employed in the past. Will this implementing strategy work for Biden? It’s too early to tell. A recession and a non-Trump GOP nominee could make it more difficult for him.
Pairing “successful implementing” and “federal government” is not a natural fit. But Zients has taken on big implementing roles in the past. He led the fix of healthcare.gov in the Obama Administration and later took the lead as the Covid-19 response coordinator.
There are already plenty of big challenges facing the implementing agenda. The White House may need a new approach for its student loan forgiveness program to pass legal muster. The Department of Energy is understaffed to implement the tens of billions in money for clean energy deployment and investment. The Environment and Protection Agency (EPA) is being stretched thin and is behind on getting new environmental rules out the door. What’s more, EPA Administrator Michael Regan is reportedly considering stepping down.
Zients is a talented implementer and fixer but he’s not Herculean. Personnel is policy and the Biden Administration needs the resources to expedite the implementing process. Right now, getting people confirmed through the Senate is no cakewalk. Democrats have an extra vote to spare from the last Congress, but it still takes valuable floor time to get nominees confirmed. Senator Tom Cotton (R-Ark.) threatened to block any Biden confirmations until the Senate Intelligence Committee received the classified documents found in the homes of Biden and former President Donald Trump. It has already been a slow confirmation process for Biden nominees.
If the implementing agenda lingers for too long, some policies won’t get done in time before the 2024 election. Court challenges, a Republican victory at the ballot box, and the use of the Congressional Review Act to overturn finalized rules all risk this implementing agenda.
Biden believed the Bain way was the wrong way over a decade ago. His electoral future and the impact of policy actions on markets will depend on those beliefs being wrong.