We’re chatting with former Cabinet members, chiefs of staff and government leaders from now to Jan. 20 to get a sense of what the incoming administration might face as it takes the reins.

Today we’re talking to Tommy Thompson, the former governor of Wisconsin who also served as Health and Human Services secretary in the George W. Bush administration. Thompson joined Wisconsin Republicans on election night to celebrate President-elect Donald Trump’s victory earlier this month.

What advice do you have for the next Cabinet secretary?

The issues that Robert F. Kennedy Jr. is focusing on are the same issues that I addressed when I was secretary. That is: obesity, diabetes, food safety and food security. My advice would be to appoint the right people to help lead the many divisions under Health and Human Services. That’s what makes you a successful secretary.

What’s one thing you didn’t know that you wish you did before you got into the job?

I was shocked when I got there to see how broad and how deep the Department of Health and Human Services affects the American people. There isn’t a human in the country that is not touched a daily basis by decisions made by the department. Whether it’s the food you eat, the drugs you take, the programs you receive, whether you’re elderly, a child or in high school or daycare, there isn’t anything that the department in some respect doesn’t touch.

What do you see as the biggest obstacle facing the next administration?

One of the biggest things always is that there are entrenched bureaucrats. There’s a saying in the Department of Health and Human Services that “in four years they will be gone and I will still be here.” They can out-wait a secretary quite easily, and they know that. The idea that they will be there after the secretary leaves so things don’t change is a huge problem in all federal departments. So what Elon Musk and Vivek Ramaswamy are doing [with their Department of Government Efficiency] is smart. If they can somehow reorganize and slim down the bureaucracy and make it more transparent and more accountable, then every secretary who comes in will be better served.

Where did you go to have a meltdown?

My way of regrouping is always to go to my farm in Elroy, Wisconsin. I would spend a few days there, getting on the tractor and doing some hard physical work and seeing the beauty of the land and the opportunities of growth with crops. It’s a great way to rehabilitate yourself.

Want more? Former Transportation Secretary Ray LaHood says career government workers are key to meeting goals.

Elon Musk and Vivek Ramaswamy outlined a plan to help companies avoid environmental regulations: The government could just refuse to enforce its own rules.

But some lawyers who specialize in federal regulation expressed doubt that companies would benefit from such a plan — or even want it.

“I don’t think it would really reduce the burden on industry for the most part, because companies have a legal obligation to comply with regulatory requirements,” said Jeff Holmstead, a former EPA air chief under President George W. Bush who represents industry clients at Bracewell LLP.

Musk and Ramaswamy, whom President-elect Donald Trump named to co-lead the so-called Department of Government Efficiency, asserted in a recent Wall Street Journal op-ed that Trump could “immediately pause the enforcement” of rules that his team deems are unneeded or harmful.

“This would liberate individuals and businesses from illicit regulations never passed by Congress and stimulate the U.S. economy,” they wrote.

It’s true that departments and agencies have latitude when deciding whether to make a company follow rules related to things such as reducing climate pollution or installing new carbon-catching technologies. They can also decide not to pursue certain cases because of a lack of resources, and they can determine when to treat a case as civil or criminal, or whether to impose administrative penalties.

That might make it hard for outside groups to sue federal offices for failing to act.

“It’s difficult to sue an agency for not enforcing a rule if they have enforcement discretion,” said Michael Gerrard, faculty director of the Sabin Center for Climate Change Law at Columbia Law School.

But those protections don’t apply to the companies themselves, according to lawyers.

Under most environmental statutes — including the Clean Air Act, the primary vehicle for climate regulation — citizens with standing can sue companies for violations when states and federal regulators opt not to. If they win, companies may have to pay monetary settlements and attorneys fees. And they may be required to suspend operations at a facility or secure permits.

For example, if a utility built a new coal-fired power plant but didn’t secure permits under a 2015 standard requiring partial carbon capture — which remains in force — a federal enforcement pause would not protect it from citizen lawsuits and angry investors.

“So, yeah, this idea that somehow announcing you’re not going to enforce existing regulations is not only not a panacea, but it’s almost meaningless,” said Holmstead.

“The only way to reduce the regulatory burden is to actually change the regulations,” he added.

Here’s what we’re watching in transition world today:

 🗓️ What we’re watching

The Trump transition has signed a memorandum of understanding with the Biden White House after an unprecedented delay in signing the agreements that lasted weeks after a winner was declared. The signing clears the way for coordination between incoming Trump officials and the federal agencies they will soon take over.
Trump transition advisers and outside allies have been discussing ways to quickly unwind the various Biden-era initiatives that offered new or easier paths to student loan forgiveness for borrowers.
Kash Patel and Cliff Sims are jostling for the deputy director gig at the CIA. 

🚨What’s up with the nominees?

A new POLITICO/Morning Consult poll shows that the public isn’t very familiar with the people President-elect Donald Trump has chosen for prominent and consequential roles in his second administration, save for a few high-profile celebrities, West Wing Playbook reports.

📝ICYMI: Here are the latest administration picks 

Trump picked Jamieson Greer to be U.S. trade representative
Vince Haley was tapped to lead the Domestic Policy Council
Jim O’Neill, a close associate of early Trump backer Peter Thiel, was tapped for HHS deputy secretary

Trump selected businessperson John Phelan as his nominee for Navy secretary
Jay Bhattacharya, a Stanford University physician and economist known for his controversial views during the Covid-19 pandemic, was picked for director of the National Institutes of Health

Kevin Hassett is heading back to the White House as director of the National Economic Council

Kevin Hassett is heading back to the White House as an economic adviser.

President-elect Donald Trump announced Tuesday that Hassett will be director of the National Economic Council, a role that puts him in charge of executing the higher tariffs and tax cuts promised during the campaign.

Hassett, whose appointment was expected, served as chair of the Council of Economic Advisers for two years during Trump’s first term.

He’s likely to play a key part in coordinating policies and strategies across the government, starting with helping to negotiate serving an extension to the 2017 Tax Cuts and Jobs Act.

“Together, we will renew and improve our record Tax Cuts, and ensure that we have Fair Trade with Countries that have taken advantage of the United States in the past,” Trump said in the announcement.

The NEC is part of the executive office of the president, and the director does not need to be confirmed by the Senate.

President-elect Donald Trump has chosen his campaign speechwriter to lead his Domestic Policy Council.

Vince Haley, who was also director of policy during the campaign, will head his domestic policy agenda, Trump said in a statement Tuesday.

“As Director of the Domestic Policy Council, Vince will help make life better for ALL Americans, and unify our Country through SUCCESS,” the statement said.

Before he joined Trump’s 2016 campaign, Haley worked for 12 years for former House Speaker Newt Gingrich.

Trump noted in the statement that he won the 2024 presidential election by an “unprecedented margin,” though he in fact fell short of an overall majority of the popular vote and only narrowly defeated Vice President Kamala Harris.

President-elect Donald Trump is expected to name Kevin Hassett to lead the National Economic Council in his second administration, according to four people with knowledge of the transition.

Hassett, 62, served as chief economist during Trump’s first term. Now, he would take on an expanded role as the president’s top adviser on economic matters and play a key part in coordinating policies and strategy across the government.

One of the main orders of business for the new NEC director will be serving as an emissary in negotiating an extension to the 2017 Tax Cuts and Jobs Act, legislation that Hassett has spent years touting.

His addition to Trump’s team would be a sign that the president-elect is favoring more established names — rather than disrupters — for top roles that will be tasked with enacting a sweeping economic policy agenda that will include high tariffs, major tax legislation and the unwinding of Biden-era regulations.

Wall Street and business leaders have responded favorably to Trump’s selection of hedge fund executive Scott Bessent to serve as Treasury secretary and Cantor Fitzgerald CEO Howard Lutnick to lead Commerce — both pending confirmation.

The NEC is part of the executive office of the president, and the director does not need to be confirmed by the Senate.

Transition spokesperson Karoline Leavitt said decisions on who will serve in the administration “will continue to be announced by [Trump] when they are made.” The president-elect has been known to change his mind on personnel appointments at the last minute. The people who said Hassett was the expected pick were granted anonymity to discuss a decision that is not yet final.

Hassett could not be reached for comment.

Bloomberg News earlier reported the news.

If ultimately named to the role, Hassett would be one of only a handful of alums to return to the White House for Trump 2.0. He will also be among the most established Republican economists in Trump’s camp, having previously worked at the Federal Reserve and as an adviser to the presidential campaigns of George W. Bush, John McCain and Mitt Romney.

He has written that he “didn’t have the DNA of a Trump advisor,” but Hassett was a major defender of Trump’s agenda during both the first administration and the presidential campaign. That included helping Trump’s team shape its attacks on Vice President Kamala Harris as she rolled out her economic policies this summer.

The new member: Rep.-elect John McGuire (R-Va.)

How they got here: McGuire easily dispatched Democrat Gloria Witt 58 percent to 42 percent after narrowly beating incumbent Rep. Bob Good (R) in the GOP primary. A write-in campaign by Good allies didn’t end up manifesting in the general election.

Inside the campaign: McGuire, a state senator, got a big boost in his primary challenge against the sitting Freedom Caucus chair: the endorsement of President-elect Donald Trump, a huge boost in this red-leaning district. He used the slogan of “Pro-Life. Pro-Gun. Pro-Trump” throughout his successful campaign.

“It really is amazing what you can do when you put your differences aside, treat each other with respect, and work as a team,” he said at his election night party.

Good’s record of making enemies throughout the Republican conference proved to be a drag on his candidacy during the primary, as he’s proven to be a regular thorn in the side of GOP leaders throughout his tenure in Congress. He became the first sitting chair of the House Freedom Caucus to lose renomination to their seat.

The issues he’ll focus on: The cost of living and economic prosperity were key issues throughout the campaign.

Background: McGuire served for years as a United States Navy SEAL. He served as a member of the Virginia House of Delegates from 2018 until 2024, when he became a state senator.

Shortly after that, he announced his bid for Congress.

Campaign ad that caught our eye: This ad of former Bob Good voters saying they wouldn’t vote for him again.“I wouldn’t ever vote for him if he was the last man on Earth,” one woman said.

Of note: McGuire revealed that he attended Trump’s Jan. 6 rally, but maintains he did not enter the Capitol grounds along with other protestors seeking to overturn Joe Biden’s presidential election victory.

We’re spotlighting new members during the transition. Want more? Meet Rep.-elect Kelly Morrison.

Mexican President Claudia Sheinbaum said her government would retaliate if President-elect Donald Trump moves forward with his threat to impose a 25 percent tariff on the country, warning of severe economic consequences for companies operating in both countries.

Sheinbaum unveiled the letter during her daily press conference in Mexico City, which responded to Trump’s plan to slap 25 percent tariffs on all goods from Mexico and Canada in an effort to crack down on the flow of migrants and illegal drugs into the United States. Trump also pledged an additional 10 percent tariff on China.

“For every tariff, there will be a response in kind,” Sheinbaum wrote in a letter sent to Trump. The text was released by the Mexican Embassy Tuesday morning, which said the economic fallout of a trade war would harm shared enterprises, particularly automotive companies that operate in both countries.

“Among Mexico’s main exporters to the United States are General Motors, Stellantis, and Ford Motor Company, which arrived in Mexico 80 years ago. Why impose a tariff that would jeopardize them? Such a measure would be unacceptable and would lead to inflation and job losses in both the United States and Mexico,” she added, according to a translated version of the letter provided by the Mexican Embassy.

The Mexican automotive industry is particularly exposed to a heightened trade conflict with Washington. Trump has repeatedly complained about auto imports from Mexico, accusing the country of being a back door for China, and floated 200 percent tariffs or higher on vehicles from south of the border.

Sheinbaum said she hopes her team can meet with members of the Trump administration to “continue building joint solutions.”

“President Trump, migration and drug consumption in the United States cannot be addressed through threats or tariffs. What is needed is cooperation and mutual understanding to tackle these significant challenges,” she wrote.

Sheinbaum also pushed back on the U.S.’ supposed trafficking of illegal firearms into Mexico, in another signal that cooperation between the North American neighbors might turn cool over the next four years. That would be a departure from former Mexican President Andrés Manuel López Obrador’s at times warm relationship with Trump during his first administration.

“Seventy percent of the illegal weapons seized from criminals in Mexico come from your country. We do not produce these weapons, nor do we consume synthetic drugs. Tragically, it is in our country that lives are lost to the violence resulting from meeting the drug demand in yours,” Sheinbaum wrote.

She added that the Mexican Congress is in the process of approving a constitutional reform that would heighten the penalties around the production, distribution, and commercialization of fentanyl. But acknowledged that the flow of chemical precursors used to produce synthetic drugs “underscores the urgent need for international collaboration.”