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Bannon had been elevated to the national security group in an unprecedented move in January. He will retain his role as senior adviser for domestic affairs.
Bannon has been elevated to the NSC's Principals Committee, the top inter-agency group for discussing national security. He formerly led Breitbart News, a platform for the alt-right movement.
Reports of infighting and dissension have plagued the transition team amid the ouster of advisers and the purging of lobbyists. On Twitter, President-elect Trump called the process "very organized."