By Andrew Kragie

Law360 (May 5, 2020, 9:12 PM EDT) -- President Donald Trump's pick to monitor massive federal loans to companies during the coronavirus pandemic pledged Tuesday to remain independent from the president he currently serves as a White House lawyer, while also suggesting he might probe companies that lay off workers despite receiving loans.

Brian D. Miller, tapped to serve as the special inspector general for pandemic recovery, would review the Treasury Department's administration of the half-trillion dollars allocated by the CARES Act and the trillions of dollars available through Federal Reserve lending facilities. Democrats on the Senate Banking Committee seemed unpersuaded that he would serve as a credible watchdog for the funding, although he described times he resisted political pressure and clashed with presidential appointees during his nearly 10-year stint as the General Services Administration watchdog.

"At every point I had to fight for independence," Miller told senators, recalling how the GSA administrator — a fellow appointee of President George W. Bush — went to the White House and had several members of Congress pressure the administration to fire Miller. The administrator was ultimately asked to resign after Miller's office found she steered a $20,000-a-month contract to a friend.

"You're never comfortable," he said. "That goes with the territory. ... At the end of the day, you have to be comfortable with your own conscience."

He promised to follow the facts wherever they lead, even if it leads to his firing, and to resign if he cannot fulfill his responsibilities. He said that he views the special inspector general's authority as extending beyond the money directly controlled by the Treasury secretary: "Right now, I consider every dollar that goes from Treasury through the Federal Reserve to also be under my jurisdiction." That includes massive lending facilities worth trillions of dollars, meant to help stabilize big businesses and reduce economic fallout from the pandemic.

Democrats secured Miller's assurance that he would alert lawmakers of undue influence from anyone in the administration or elsewhere — including from members of Congress.

Democratic senators on Tuesday pointed out that he joined the White House counsel's office just a few months after publishing a 2018 op-ed in congressional newspaper The Hill about the need for inspectors general to remain independent from lawmakers. In the article he criticized congressional Democrats for "egregious" threats to watchdog independence with their push for specific investigations of the Trump administration.

Miller refused to discuss his work in the White House, calling it privileged, but he appears to have played a tangential role in Trump's impeachment defense, writing perfunctory letters responding to inquires from lawmakers and the congressional watchdog. He characterized his role in the impeachment defense as "just answering the mail."

But Sen. Elizabeth Warren complained to Miller that "your time working as one of President Trump's impeachment defense lawyers should have disqualified you." The Massachusetts Democrat did get Miller to agree that he might investigate any company that receives taxpayer money after lobbying Congress or the administration, or any business that accepts favorable government loans but lays off workers. He also said directing relief money to certain states for political gain would be improper.

Miller said he expects to quickly assemble a staff of 75 or 100 people for an effort that could easily take five years. The office is modeled on the Special Inspector General for the Troubled Asset Relief Program watchdog for government money deployed after the 2008 financial crisis, which remains in operation after more than a decade.

Democratic senators seemed skeptical of Miller's independence and his willingness to communicate with Congress when the administration might prefer otherwise.

"There is a skepticism," said Sen. Sherrod Brown of Ohio, the banking panel's top Democrat. "It's not general practice that the president of the United States nominates someone for a job this important who came out of the White House. You have a bar you need to get over to demonstrate your independence."

Miller refused to comment on Trump's derogatory comments about some inspectors general and his recent demotions of several watchdogs. But he pointed to precedent for administration lawyers going directly to independent posts, including U.S. Supreme Court Justice Elena Kagan, who was President Barack Obama's solicitor general and served in President Bill Clinton's White House before joining the high court.

Republicans all seemed receptive to Miller. He does not need any Democratic support to advance through the Banking Committee, where the GOP has a 13-12 advantage, or the full Senate, where the 53 Republicans generally stick together to confirm Trump appointees.

The panel also questioned Dana T. Wade, a former staffer for Sen. Richard Shelby, R-Ala., who was tapped to lead the Federal Housing Administration. She also faced Democratic skepticism over her role in the Trump administration but enjoyed widespread Republican support.

The confirmation hearing saw the nominees, several senators and all staffers wearing masks in a large chamber that allowed for social distancing during what committee leaders said was the first hearing of its kind, with all Democrats and some Republicans appearing by video conference.

The two-hour hearing went smoothly for the most part, with a few hiccups and humorous moments. Warren initially had technical issues that left her visible on screen but without any audio. Sen. Mark Warner, D-Va., quipped that his yellow lighting left him looking "pretty godawful" on video. A dog barked loudly in the background at one point during Brown's opening remarks.

--Editing by Bruce Goldman.

For a reprint of this article, please contact reprints@law360.com.