Lynn Receives Ethics Waiver, Nomination Still in Limbo

The nomination of William Lynn to be deputy defense secretary is in question after President Obama signed an executive order this past week implementing new ethics and lobbying rules for his Administration.  As part of that order, no previously-registered lobbyist can work on related issues until they have been removed from the practice for two years.  In Mr. Lynn’s case, he has spent the “better part of the past two years lobbying for defense contractor Raytheon,” according to the Washington Post.

Despite the fact that Lynn has lobbied, according to the Post, Department of Defense officials on so many issues “that it might be hard to find an area within the department that was untouched by his previous work,” the Obama Administration granted him a waiver yesterday to serve.

Notably, the executive order provides for a written and certified waiver if the “literal application of the restriction is inconsistent with the purposes of the restriction” or “it is in the public interest to grant the waiver,” which includes “exigent circumstances relating to national security or to the economy.”  Pretty broad language.

In light of this waiver, Politico reports that Mr. Lynn’s nomination “is nowhere near settled.”

Noting the waiver “removes an obstacle” to the nomination, Senate Armed Services Committee Chairman Carl Levin (D-Mich.) said he looks “forward to prompt consideration by the Senate.”

Levin said the committee would insist that Lynn remove himself from any decisions regarding defense contractor Raytheon for the next year “unless specifically authorized to participate by an appropriate ethics official.” But McCain, who eased debate about Hillary Rodham Clinton’s nomination for secretary of state, still has his sights set on Lynn.

“I am disappointed in President Obama’s decision to waive the “revolving door” provisions of the executive order for Mr. Bill Lynn, his nominee to serve as deputy secretary of defense,” McCain said. “While I applaud the president’s action to implement new, more stringent ethical rules, I had hoped he would not find it necessary to waive them so soon.”

McCain also said he wanted to ask Lynn to clarify what decisions would require him to step aside.

No panel vote on the Armed Services Committee has yet been scheduled, but members plan to meet on Tuesday to discuss the situation again.

Update: The AP reports that Senator John McCain (R-AZ) will likely push to move forward with Lynn’s nomination despite his concerns over a lobbying waiver.