Jay Clayton DNI vote could end Bill Pulte’s interim intelligence role

The Jay Clayton DNI vote scheduled for Tuesday evening could put President Donald Trump’s nominee in charge of the U.S. intelligence community and close out Bill Pulte’s brief interim run, CNBC reported. For investors who track Washington risk, the decision matters because the director of national intelligence helps coordinate national-security information across the government, and Clayton’s confirmation could affect talks over a lapsed surveillance law.

Clayton, a former Securities and Exchange Commission chair who currently serves as U.S. attorney for the Southern District of New York, cleared a procedural step in the Senate on Monday, according to CNBC. He is expected to win confirmation.

Who is Jay Clayton?

Clayton is best known in financial circles for leading the SEC, the main U.S. regulator for public companies, securities markets and investment products. He now serves as U.S. attorney for the Southern District of New York, one of the country’s most prominent federal prosecutor offices.

Trump announced Clayton as his choice for director of national intelligence in June, CNBC reported. Senate Majority Leader John Thune, a South Dakota Republican, said on the Senate floor Monday that elevated threats made it especially important to have a proven leader in the post, and he argued Clayton met that standard.

What would Clayton control as DNI?

The director of national intelligence, often shortened to DNI, oversees coordination across 18 U.S. intelligence agencies and has access to some of the country’s most sensitive classified information. The job is a central hub for intelligence that informs the president, Congress and national-security agencies.

If confirmed, Clayton would take over from Pulte, a close Trump ally who also leads the Federal Housing Finance Agency. CNBC reported that Pulte’s short tenure at the intelligence post drew controversy after multiple rounds of layoffs involving senior intelligence officials.

Why was the confirmation delayed?

Clayton’s path initially appeared likely to move quickly, CNBC reported, in part because lawmakers wanted to remove Pulte from the interim role. The process slowed after Trump told Clayton not to appear for a scheduled Senate confirmation hearing in June.

Clayton later testified before the Senate Select Committee on Intelligence on July 15. CNBC reported that the hearing became contentious after Clayton declined to say outright that Joe Biden won the 2020 election. He also defended subpoenas involving New York Times journalists and their reporting on a Qatari jet gifted to Trump.

The Justice Department has since withdrawn those subpoenas, according to CNBC.

What is Section 702?

Section 702 is a part of the Foreign Intelligence Surveillance Act that covers foreign surveillance authorities. CNBC reported that the law lapsed in June, partly because Democrats opposed Pulte’s interim appointment to the DNI role.

Clayton’s confirmation could help clear the way for a deal to renew Section 702, CNBC reported. The vote therefore has two immediate effects in Washington: it would install Trump’s chosen intelligence chief and could change the politics around a major surveillance program that has been stalled since June.

This story draws on original reporting from CNBC.