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Congressional Dish

Congressional Dish

An independent podcast examining what the U.S. Congress is doing with our money and in our names. www.congressionaldish.com Follow @JenBriney on Twitter

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CD289: The Not A TikTok Ban Bill

A bill is quickly moving through Congress that supposedly would ?ban TikTok.? While it is clearly aimed at TikTok, this bill is really about creating a new Presidential power to remove Americans? access to apps, websites, games and other entire tech platforms. In this episode, using the text of the bill itself, we examine how exactly this new censorship power would work if the bill passes the Senate and becomes law. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Not a TikTok Ban Bill Drew Harwell et al. March 13, 2024. The Washington Post. David E. Sanger. March 13, 2024. The New York Times. Aamer Madhani. March 8, 2024. AP News. Opposition to the bill Jenna Leventoff. March 13, 2024. ACLU. Access Now et al. March 12, 2024. ACLU. How we got here Dan Primack. March 12, 2024. Axios. Samantha Delouya and Brian Fung. November 30, 2023. CNN. Emily Baker-White. August 21, 2023. Forbes. November 20, 2023. Reuters. Brian Fung. December 30, 2022. CNN. James K. Jackson. February 14, 2020. Congressional Research Service. Grindr Echo Wang. May 13, 2019. Reuters. Jeff Farrah. April 15, 2019. TechCrunch. ByteDance Lily Kuo and Annabelle Timsit. March 13, 2024. The Washington Post. April 16, 2023. TikTok. Censorship and Spying Jonathan Vanian. January 22, 2024. CNBC. May 16, 2023. U.S. Central Intelligence Agency, Office of Public Affairs. Marielle Descalsota. December 27, 2022. Business Insider. Lily Hay Newman. May 7, 2019. Wired. Israel and AIPAC Camille Bressange. March 16, 2024. The Wall Street Journal. Kate Linthicum. March 13, 2024. The Los Angeles Times. Celine Alkhaldi et al. March 8, 2024. CNN. December 3, 2023. Velshi on MSNBC. Rep. Mike Gallagher. November 1, 2023. The Free Press. Mater Dei High School. TikTok September 20, 2021. BBC. The Bill Audio Sources House Floor March 13, 2024 Clips 19:00 Rep. Thomas Massie (R-KY): There was there were some people who were legitimately concerned that this was an overly broad bill and they got an exclusion written into the bill that I want to read. It says the term "covered company" does not include an entity that operates a website or application, whose primary purpose is to allow users to post product reviews, business reviews, or travel information and reviews. Why is this exception in the bill? Why did somebody feel like they needed this exception if the bill itself only covers social media applications that foreign adversaries are running now? 21:15 Rep. Frank Pallone (D-NJ): While this bill establishes a national security framework that could apply to other applications, much of the public attention is focused on TikTok. 23:15 Rep. Michael Gallagher (R-WI): Mr. Speaker, TikTok is a threat to our national security because it is owned by ByteDance, which does the bidding of the Chinese Communist Party. We know this because ByteDance?s leadership says so and because Chinese law requires it. This bill, therefore, would force TikTok to break up with the Chinese Communist Party. It does not apply to American companies. It only applies to companies subject to the controlof foreign adversaries defined by Congress. It says nothing about election interference and cannot be turned against any American social media platform. It does not impact websites in general. The only impacted sites are those associated with foreign adversary apps, such as TikTok.com. It can never be used to penalize individuals. The text explicitly prohibits that. It cannot be used to censor speech. It takes no position at all on the content of speech, only foreign adversary control of what is becoming the dominant news platform for Americans under 30. 25:55 Rep. Raja Krishnamoorthi (D-IL): This divestment requirement is not new. It's not without precedent. When the app Grindr, a popular LGBTQ app, was acquired by a Chinese company, and the United States government determined that sensitive data of LGBTQ members of the military and US government officials got into the hands of the Chinese Communist Party, they required divestment. This happened quickly. Why? Because Grindr was a very valuable social media company. The same is true with regard to TikTok, and there will be no disruption to users, just as there was with Grindr. 27:25 Rep. Raja Krishnamoorthi (D-IL): Last week, under the leadership of the Chairwoman and the Ranking Member, they brought up for consideration our bill before the House Energy and Commerce Committee. On the morning of that vote, TikTok, delivered a push notification and a pop up to thousands of users across the country. They used geolocation data targeting minor children to then force them to call congressional offices in order to continue using the app. And in doing so, these children called and they asked the question: what is Congress? And what is a Congressman? This influence campaign illustrates the need for this bill. 29:20 Rep. Warren Davidson (R-OH): The people sponsoring this bill today claim that the real issue is ownership. But who owns this company? It's not 100% owned by Bytedance. 60% of it's owned by investors, including American investors. 20% are owned by the founders and 20% are owned by over 7000 employees. The company's headquarters is not in China, it's in Singapore. And the American user data isn't housed in China. It's housed in Texas, controlled by a database owned by Oracle. 30:20 Rep. Warren Davidson (R-OH): So if we think we can address the privacy concerns, what's left to address? Frankly, content moderation. Remember, before Elon Musk bought the crime scene at Twitter, it was all a conspiracy theory that these algorithms were silencing and canceling people. You guys are crazy. Now when Elon Musk bought Twitter, he did keep it operating with 80% fewer employees. But what we found is a lot of the employees were trying to do content moderation, shape who sees what and how they see it, which algorithms are used, how does it promote certain people and, and filter others? So really, what you're saying here is if you're not fully engaged with America's three letter agencies in content moderation, we plan to 'TikTok' you. And this bill isn't just limited to TikTok. It's a coercive power that can be applied to other apps like Telegram, Tor. Things that provide privacy would be targeted by this bill. 34:20 Rep. Nancy Pelosi (D-CA): First of all, this is not a ban on TikTok. I'm a grandmother of teenagers, I understand the entertainment value, the educational value, communication value, the business value for some businesses on this. This is not an attempt to ban TikTok. Its an attempt to make TikTok better. Tic Tac Toe. A winner, a winner. 41:00 Brett Guthrie (R-KY): I was asked, does this just affect TikTok? And no, it's any foreign adversary, or any app that is owned, controlled or unduly influenced by any foreign adversary. We must protect our national security and help keep America's private data out of the hands of our foreign adversaries. I urge support of this bill, and I yield back. 51:55 Rep. Larry Bucshon (R-IN): After hearing from national security experts last week, it is clear the prolific use of media platforms controlled by the Chinese Communist Party and other foreign adversaries poses a danger to our country. 53:15 Rep. Sydney Kamlager-Dove (D-CA): This bill would greatly expand the Executive's authority to ban tech companies with zero congressional oversight. I cannot sign a blank check to some future president who would easily and dangerously weaponize this legislation to profit in silence. 55:20 Rep. Kat Cammack (R-FL): We aren't banning a company, as the high paid lobbyists for Bytedance - which is owned by China - would lead you to believe. We aren't infringing on constitutionally protected speech or growing the size of government. All we're saying is, Break up with the Chinese Communist Party. 1:02:30 Rep. Thomas Massie (R-KY): Who's going to be prosecuted by this bill? Is it Bytedance or TikTok? Will they be taken to court? No. I mean, they're the target of this, but how do you elicit or effect a ban on them? By prosecuting Americans? The only way you can ban TikTok and the other companies from being here is to say what this bill says, which is the government will bring a civil action suit against you, if you so much as host them here. If you have an app store that allows them to be here, you're an American or an American company and you will be the target of this bill. Those are the only people who can be pursued under this bill and I know it's in order to go after TikTok, or so they say. Music by Editing Production Assistance
2024-03-15
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CD288: Government Funding 101

As we enter another round of government funding drama, let?s learn the basics. In this episode, we examine how the process is supposed to work, spot the tell tale signs that something has gone wrong, and decipher all of the DC wonky words that make the appropriations process seem more complicated than it really is. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Appropriations February 8, 2023. House of Representatives Committee on Appropriations. Mandatory vs. Discretionary Spending FiscalData.Treasury.gov. Updated October 24, 2022. Center on Budget and Policy Priorities. Government Shutdown February 26, 2024. Committee for a Responsible Federal Budget. Omnibus Bills Andrew Taylor. December 22, 2020. AP News. Earmarks February 9, 2005. Taxpayers for Common Sense. Retrieved from the Wayback Machine version from October 25, 2008. What Happens Next Jamie Dupree. March 5, 2024. Regular Order. Audio Sources House Committee on Appropriations, Subcommittee on Defense January 12, 2022 Witness: Mike McCord, Under Secretary of Defense (Comptroller) Clips 29:51 Mike McCord: First, as I believe you?re all aware a full year CR, we reduce our funding level below what we requested and what we believe we need. On the surface at the department level as a whole, the reduction to our accounts would appear to be about a billion dollars below our request, which would be significant. Even if that was the only impact. The actual reduction in practice will be much greater. Because we would have significant funding that?s misaligned, trapped or frozen in the wrong places and unusable because we don?t have the tools or flexibilities to realign funds on anything like the scam we would need to fix all the problems that the chiefs are going to describe. 30:27 Mike McCord: I know all of you are very familiar with the fact that virtually all military construction projects in each year?s budget including the FY 22 budget are new starts that cannot be executed under a CR. Music by Editing Production Assistance
2024-03-06
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CD287: War Money

It?s been four months since President Biden requested over $100 billion in war money for Israel and Ukraine and the Senate has now passed a bill that would provide most of the money. In this episode, we examine the events that lead up to and have occurred since President Biden?s address to the nation, and analyze the Senate bill along with its possible paths to becoming law. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes October 7 Attack Aluf Benn. February 21, 2024. Haaretz. Liza Rozovsky. January 6, 2024. Haaretz. Amos Harel. November 27, 2023. Haaretz. November 18, 2023. Josh Breiner. Haaretz. Hagar Shezaf and Jack Khoury. October 6, 2023. Haaretz. Aftermath of the October 7 Attack Ran Shimoni et al. February 24, 2024. Haaretz. October 20, 2023. White House Briefing Room. Michael D. Shear. October 19, 2023. The New York Times. October 19, 2023. Democracy Now! History of Palestine and Israel Bernard Avishai. February 2024. Harper?s Magazine. October 20, 2023. The World. Directed by Erin Axelman and Sam Eilertsen, produced by Daniel J. Chalfen, Nadia Saah, and Erin Axelman. 2023. OCHA. June 2022. UNICEF. Rashid Khalidi. Macmillan Audio: 2020. Directed by Abby Martin. 2019. Empire Files. Ian Black. Tantor Audio: 2018. Darryl Cooper. 2015-2016. Martyrmade Podcast. April 16, 2015. Defense for Children International - Palestine. March 2012. Visualizing Palestine. Balfour Declaration Zena Al Tahhan. November 2, 2018. Al Jazeera. Lord Arthur James Balfour. November 2, 1917. Jewish Virtual Library. Vanishing Palestine Retrieved on February 27, 2024. Wikipedia: the free Encyclopedia. October 11, 2023. BBC. Hagar Shezaf. December 11, 2020. Haaretz. May 12, 2020. Human Rights Watch. Mitchell Bard. Jewish Virtual Library. Al Jazeera. Alex Hartman et al. December 9, 2004. Adalah ? The Legal Center for Arab Minority Rights in Israel. 2003. Creation of Israel 1947. April 1983. United Nations. Lebanon Rania Abouzeid. October 21, 2023. The New Yorker. Tom Perry et al. October 18, 2022. Reuters. Dahiya Doctrine December 7, 2012. Institute for Middle East Understanding. Gabi Siboni. October 2, 2008. INSS Insight. November 23, 2006. UN General Assembly Human Rights Council. Gaza Death Toll AJLabs. Retrieved on February 27, 2024. Al Jazeera. Amna Nawaz and Sonia Kopelev. February 9, 2024. PBS NewsHour. Linda Dayan. December 26, 2023. Haaretz. June 23, 2015. United Nations Office for the Coordination of Humanitarian Affairs. Caabu. Rory McCarthy. September 15, 2009. The Guardian. Post-October 7 Land Grab Henriette Chacar. February 23, 2024. Reuters. Julia Frankel. February 23, 2024. AP News. Liza Rozovsky. February 15, 2024. Haaretz. Nir Hasson and Rachel Fink. January 28, 2024. Haaretz. Abdelraouf Arnaout. January 3, 2024. Anadolu Agency. Itai Weiss. December 27, 2023. Haaretz. Yitzhak Benbaji et al. November 30, 2023. Haaretz. Isaac Chotiner. November 11, 2023. The New Yorker. Uploaded by LocalCall. October 13, 2023. Scribd. Gas Rights Walid Abuhelal. February 20, 2024. Middle East Eye. Israeli Nukes Center for Arms Control and Non-proliferation. Ceasefire Amy Spiro et al. November 30, 2023. The Times of Israel. Omar Shakir. November 29, 2023. Human Rights Watch. The Destruction of Gaza James Mackenzie and Nidal Al-Mughrabi. February 15, 2024. Reuters. Mithil Aggarwal and Yasmine Salam. January 18, 2024. NBC News. Yahya R. Sarraj. December 24, 2023. The New York Times. Gabrielle Tétrault-Farber. December 21, 2023. Reuters. U.S. Aid to Israel Matthew Lee. December 29, 2023. PBS NewsHour. Michael D. Shear and Karoun Demirjian. October 20, 2023. The New York Times. Limiting Aid to Gaza Katie Polglase and Muhammad Darwish. February 21, 2024. CNN. Rachel Fink. February 7, 2024. Haaretz. Lindsey Hilsum. February 5, 2024. Channel 4 News. Jessica Le Masurier. February 5, 2024. France 24. Netanyahu Rejects Two State Solution January 19, 2024. DW. Why Does the U.S. Government Support Israel? OpenSecrets. Real American History Howard Zinn. Harper Audio: 2009. Ukraine Anatol Lieven. February 24, 2024. Time. Border Crisis Jamie Dupree. February 15, 2024. Regular Order. Caitlin Yilek. February 14, 2024. CBS News. Kelly Garrity. February 5, 2024. Politico. Bills Audio Sources February 11, 2024 Bernie Sanders on X October 19, 2023 C-SPAN Executive Producer Recommended Sources Music by Editing Production Assistance
2024-02-29
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CD286: Prolonging the War in Ukraine

Congress is probably going to send approximately $50 billion more, most of that for weapons, to continue the war in Ukraine. In November, high ranking officials from the State Department testified about how the Biden administration intends to use our money and why. In this episode, hear the highlights of their testimony and decide for yourself if you think their goals are worth sacrificing more American money and Ukrainian lives. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes WTF is the World Trade System? Naomi Klein. Picador: 2008. Nicole Narea. October 13, 2023. Vox. Offshore Technology. Ukraine: How We Got Here Branko Marcetic. February 7, 2022. Jacobin. Stanley Reed and Andrew E. Kramer. November 5, 2013. The New York Times. Marieke Ploegmakers. February 5, 2012. All About Feed. Arseniy Yatsenyuk Official Website. Retrieved on December 16, 2023. Wikipedia: The Free Encyclopedia. The Ukraine War, by the Map Defence Intelligence, UK Ministry of Defense. December 15, 2023. GlobalSecurity.org. Visual Journalism Team. November 16, 2023. BBC News. Josh Holder. September 28, 2023. The New York Times. @war_mapper. December 31, 2022. GlobalSecurity.org. U.S. Support for Ukraine Karoun Demirjian. December 6, 2023. The New York Times. The IMF in Ukraine Oleksandra Betliy. May 5, 2023. Carnegie Endowment for International Peace. March 31, 2023. International Monetary Fund. Estelle Nilsson-Julien and Ilaria Federico. March 5, 2023. Euronews. December 21, 2022. International Monetary Fund. Diplomacy Connor Echols. December 1, 2023. Responsible Statecraft. Seymour Hersh. December 1, 2023. Seymour Hersh on Substack. Olena Roshchina. November 24, 2023. Ukrainska Pravda. The Toll of War Jonathan Landay. December 12, 2023. Reuters. John Mazerolle. December 8, 2023. CBC News. Inae Oh. November 8, 2023. Mother Jones. Oleg Sukhov. September 28, 2023. The Kyiv Independent. Israel-Palestine Ian Black. Narrated by Michael Page. Tantor Audio: 2018. Darryl Cooper. The Martyrmade Podcast. Audio Sources November 8, 2023 Senate Foreign Relations Committee Witnesses: , Assistant Secretary of State, European and Eurasian Affairs , Assistant Secretary of State, Energy Resources , Assistant Administrator, Europe and Eurasia, United States Agency for International Development (USAID) Clips 1:55 Sen. Ben Cardin (D-MD): The supplemental funding will strengthen governance and anti-corruption systems. It will improve the resilience of our economies and our energy supply. It will support efforts to come out of the other side of this. We're ready for Ukraine to join EU and also NATO. But this investment in Ukraine goes far beyond its borders. By degrading Russia's military capabilities, we're also degrading the capabilities of those who Russia works with, like Iran, Hamas, and Hezbollah. 10:30 Sen. Ben Cardin (D-MD): First Assistant Secretary of State for European and Eurasian Affairs James O'Brien. Assistant Secretary O'Brien assumed his role just last month after serving as sanctions coordinator at the State Department. He is a former career employee of the department receiving numerous performance awards and serve to previous US administration's as Special Presidential Envoy for hostages and for the Balkans. 11:00 Sen. Ben Cardin (D-MD): The next will be Assistant Secretary for Energy Resources, Jeffrey R. Pyatt. No stranger to this committee, career diplomat Assistant Secretary Pyatt has been in his current role since September 2022. He served as US Ambassador to Greece and Ukraine. He has held numerous leadership positions through out the department and has won numerous awards. 11:25 Sen. Ben Cardin (D-MD): And our third witness is Assistant Administrator Erin McKee, who serves as the Assistant Administrator in the Bureau of Europe and Eurasia at USAID. Prior to this position, she was the US Ambassador to Papua New Guinea and to the Solomon Islands. Prior to her Ambassador appointments, as a member of the Senior Foreign Service she served in numerous leadership roles throughout USAID and the embassies abroad. Before her US government career she developed private sector experience including throughout the former Soviet Union. 14:40 James O'Brien: This is around the Black Sea and Crimea. Ukraine has, through its own ingenuity and with weapons that have been provided, loosened Russia's grip. Russia tried to blockade the ability of Ukraine to export, but now Ukraine is starting to export more grain, more metals. And this is enabling it to pay for more of its war itself. So just a few numbers as we go through this. Ukraine is hoping to get about 8 million tons of grain and metals out through the Black Sea over the course of the next year. If it does that, it will provide about $5-6 billion more for its tax base than it has now. That helps to make up the shortfall that our supplemental will cover for the meantime. But it also then provides the employment for millions of its citizens to work within Ukraine. Now, that is a path to victory where we help Ukraine by providing assistance to have its energy grid strengthened, air defense over its employment centers, and the export routed needs so that it is able to fight this fight over the long term and to hold Russia off thereafter. 15:50 James O'Brien: The military assistance in the supplemental is about $45 billion. That goes to acquire American equipment that Ukraine will then use to pay for American service people to support Ukraine and to pay other countries to acquire American equipment after they provide equipment to Ukraine. 16:05 James O'Brien: The direct budget support that we provide to Ukraine enables Ukraine to put all of its tax dollars to support the war. Ukraine pays for about 60% of the costs of this war right now. The direct budget support pays for hundreds of thousands of educators, first responders, firefighters, and health care professionals to work within Ukraine. 16:55 James O'Brien: The next question is, who's with us? We have more than 40 countries. They provide much more assistance to Ukraine than we do. It's about $91 billion to our $70 billion so far. They've hosted 4.5 million Ukrainian refugees at a cost of around $18 billion. They are proposing another $50 billion in assistance just from the European Union. 17:30 James O'Brien: Right now, Ukrainians are willing to do this job because it's in their territory. If we abandon them, then somebody else is going to have to do this job later and it's likely to be us. So I'd rather confront Russia and its destabilizing attitudes right here, right now, and we can finish the job with the supplemental that we've proposed for your consideration. 18:45 Geoffrey R. Pyatt: For Ukraine, this coming winter promises to be even more challenging than the last. Ukraine's generation capacity has degraded about 50% since the start of the war. Ukrainian energy workers have labored day and night, often under fire, to repair, restore, and harden grid and generation facilities, often by cannibalizing parts from elsewhere. But most spare parts by now have been consumed, and Russia has recently resumed its bombardment of power plants and refineries, including just this morning in eastern Ukraine. 20:50 Geoffrey R. Pyatt: The World Bank has estimated that after last winter, Ukraine needed at least $411 billion to rebuild its infrastructure. That was eight months ago. Every day that number grows. Electricity grid damage alone amounted to $10 billion in 2022. Ukraine's economic future depends on investment by the private sector, and energy is key to unlocking that industrial recovery. 21:25 Geoffrey R. Pyatt: American energy companies like Halliburton, GE, and EQT have been active partners in this effort, providing vital equipment to Ukraine and actively exploring future commercial opportunities. We're working together to build a better future for and with Ukraine -- modern, cleaner, and with a more decentralized power sector that is fully integrated with Europe, even serving as a power exporter to the rest of the European Union. 22:10 Geoffrey R. Pyatt: After the full scale invasion, US LNG producers stepped up to surge supplies to Europe, as our allies turned away from Russia as an energy source. Since 2022, US exporters have supplied the EU with approximately 90 million tons of LNG -- three times as much as the next largest supplier. Last year, 70% of US LNG exports went to Europe. Europe's shift away from Russian energy has happened much faster than predicted, and marks a permanent shift in the International Energy map. 25:30 Erin McKee: In response to the immediate crisis, USAID has provided nearly $2 billion in humanitarian assistance to Ukraine since February of 2022. The generosity of the American people has supplied emergency health care, agriculture and energy support to Ukraine's most vulnerable populations. And thanks to the Congressional appropriations, USAID disbursed reliable, sustained direct budget support to the Ukrainian government, along with unprecedented levels of oversight. This enabled first responders, health care workers, teachers and others to continue their vital work and sustain Ukraine's economy and institutions while they defend their country's freedom and sovereignty. 26:10 Erin McKee: To respond to Russia's weaponization of hunger, USAID launched the Agriculture Resilience Initiative to keep farmers afloat. USAID also works very closely with the private sector to improve Ukraine's energy security and transform Ukraine's energy sector into a modern engine of growth. Side by side with our agriculture and energy efforts is USAID's support to small and medium enterprises, helping Ukraine increase jobs and generate revenue. 26:45 Erin McKee: At this time, there is no funding left for direct budget support. Without further appropriations, the government of Ukraine would need to use emergency measures such as printing money or not paying critical salaries, which could lead to hyperinflation and severely damage the war effort. USAID has also exhausted all of its supplemental humanitarian assistance funds. Additional funding is critical in the face of what remains an enormous need. If Congress does not approve supplemental funding, our partner organizations in Ukraine would have to either reduce the number of people getting this humanitarian assistance by up to 75% or suspend our humanitarian programs entirely. 27:30 Erin McKee: USAID also looks to the future to building resilient infrastructure and institutions that will support Ukraine's path towards European Union integration. For decades, USAID has buttressed Ukraine's progress towards transparent, inclusive and accountable governance. The United States continues to help Ukraine carry out judicial reform, institutionalized transparent financial systems, and respond to the people of Ukraine's zero tolerance for corruption. 33:15 Erin McKee: They have not skipped a beat in advancing the reform agenda. The EU report just came out this morning and both Ukraine and Moldova, and a variety of other countries, received support for continuing and opening chapters of recession talks. That's because our support to strengthening and deepening the institutions fighting corruption in Ukraine have received the top priority from the President. They had to pass and meet conditionality that we put on our direct budget support and did so without blinking. So while they're fighting a war and fighting for their survival, they are 100% dedicated to ensuring that the political economy model that they inherited during the Soviet Union is dismantled, which reflects the will of the Ukrainian people. 34:35 Geoffrey R. Pyatt: And one of the real success stories amid the tragedy of this war is that Europe has turned decisively away from its dependence, up until 2022, on Russian gas in particular. I see that as a permanent change in the landscape. It's reflected in the billions of dollars that European countries have invested in regasification facilities. It's reflected in the contracts that are being signed with American LNG producers. And it's also reflected in Europe's renewed and doubled commitment to accelerating the pace of its energy transition. So ironically, Putin's weaponization of his energy resource has induced Europe to break its vulnerability there and I think that is a permanent change in the landscape. That is also a positive benefit for American energy producers in our leadership on the energy transition. 35:55 Sen. James Risch (R-ID): I want to talk about the nuclear reactors we have in the United States, of which there are 95, give or take a few. Would you tell the committee, please, where does the fuel come from to operate these nuclear facilities? Geoffrey R. Pyatt: So, Ranking Member, about 20% of the fuel that operates our nuclear fleet here in the United States still comes from Russia. The President has included in his latest supplemental request for about $2.2 billion to help rebuild the nuclear enrichment capacity that we need here in the United States to end that dependency. And the administration has also stated its support for a ban on the import of Russian nuclear fuel. 43:30 Erin McKee: Right now Ukraine is able to spend all of their national budget in the fight. They are paying their soldiers salaries, they are dedicated to defeating Putin on the front lines. That means they don't have any resources to take care of their people and govern, which is as vital to keep up the unity of purpose and the resilience that we've seen from the Ukrainian people, because they're all in, both on the civilian and the military side. So the types of services that would be suspended are first responders who rush into the building and save lives, medical care to make sure that inoculations stay up so that the Ukrainian population stays healthy, particularly children's routine immunizations. We heard reports of polio outbreaks and some other concerns during the early days of the mass emigration of folks fleeing the conflict. We also are supporting teachers and continuing education so that they don't lose a generation as a result of Putin's attacks on civilians and civilian infrastructure so that the kids can stay in school, and that those families ? Sen. Chris Coons (D-DE): Am I correct that the direct budget support requested gradually goes down over the next year, as the economy becomes more vibrant and we assess Ukraine is able to generate more revenue? Erin McKee: Correct. The direct budget support and their fiscal stability is also vital for the IMF program and other donors stepping in. Our leadership in this space -- and yes, we were first -- unlocked the other support that we've seen mobilized from the EU and other donors, as well as boosting the confidence in the multilaterals to be able to contribute to Ukraine's economic stability, which is as vital as winning the war. If their economy collapses, Putin will have won. 47:55 Sen. Rand Paul (R-KY): As Harvard's Graham Allison points out, if Putin is forced to choose between humiliating defeat on the one hand and escalating the level of destruction, there's every reason to believe he chooses the latter. There's a great deal of evidence that the war in Ukraine has come to a stalemate. Even Ukraine's Commander in Chief of the armed services has admitted as much. In Graham Allison's view, the Ukraine war has escalated far enough to see how bad things would become if we end up in a world where nuclear weapons are used. Allison believes that where we are now, both for Putin's Russia and for the Biden-led US and the Western alliance, it's time to search for an off ramp for all the parties. What is being done at the State Department to search for an off ramp. James O'Brien: Thank you, Senator. A few points. I mean, I can speak to the foreign policy implications. My belief is if we don't stand with Ukraine now, we'll be spending much more on defense in the future. Much of this supplemental goes to reinvest in the United States, so far from rot and ruin, we're actually shoring up the foundations in our energy sector as Assistant Secretary Pyatt ? Sen. Rand Paul (R-KY): So your argument is that war and funding war around the world is good for our armaments industry. James O'Brien: I'm saying this supplemental is good for our economy ? Sen. Rand Paul (R-KY): For the armaments industry. So really, it's a justification of war. To me, that's sort of reprehensible -- and this is coming from my side as well -- the idea that "Oh, glory be, the war's really not that bad. Broken windows are not that bad, because we pay people to fix them. Broken countries are not so bad, because hey, look, the armaments industry is gonna get billions of dollars out of this." I think that's a terrible argument. I wish y'all would go back to your freedom arguments or something. But the idea that you're going to enrich the armaments manufacturers, I think is reprehensible. James O'Brien: Well, Senator, I'm not making the argument war is good. I'm making the argument, in this case, war is necessary. Sen. Rand Paul (R-KY): And that we can make a little profit on the side. It's not so bad since the armaments guys who make a lot of profit on this, right. James O'Brien: Senator, I think you're proposing a kind of false choice that Ieither have to say that or say nothing. What I'm saying is that our economy rests on a foundation of innovation. And in the supplemental, we're investing in our energy sector ? Sen. Rand Paul (R-KY): But the money is borrowed. We're borrowing the money. We don't have it. We don't have a pot of money. So what you're arguing is, in essence, that we borrow the money from China, we send it to Ukraine, Ukraine, sends it back to buy arms from us, and that's a win-win. How do we win when we're borrowing money to pay people. See this is this false sort of argument that "oh, look, we'll create five jobs for every dollar we spend," but we're borrowing the money. It doesn't make any sense. It's coming from somewhere where it would be a productive use, into the use of basically fomenting a war and continuing on a war. James O'Brien: No, that's not the choice in front of us, Senator. And I'm sorry that you feel that that's the way you want to frame it. The choice in front of us is do we invest in the capacities that allow this war to be won? Those include capacities in energy, in defense, in IT, and they include ? Sen. Rand Paul (R-KY): Let's get away from funding the armaments people. You know, I'm not for that. But the original question is, what are you doing to develop an off ramp? You know, when I listen to your presentations, it sounds like the Department of War, I don't hear the Department of diplomacy in front of me. Where are the diplomats? Is anybody talking about negotiation? Do you really believe that Ukraine is gonna push Russia out of out of Ukraine, they're gonna push them out of Crimea, push them out of the East, and that Zelenskyy's is position, "we will not negotiate till they're gone from Ukraine," is viable? And that there's not going to have to be some negotiation beforehand? If you believe that, though, the meat grinder continues and Ukraine will be in utter destruction and tens of thousands more people will die if there is no negotiation. You would think that as a superpower, we would be involved somewhat with encouraging negotiation. But I've heard nothing from you, and nothing from anyone in your administration, frankly, that talks about negotiating. James O'Brien: Well, Senator, then I hope you would sit down and talk with me about what we're doing in this regard. Here, I'll give you a little sense of it. All wars end with a negotiation. We've made clear we'll do that with Ukraine, not over Ukraine's head. It takes two parties to negotiate the end of a war. President Putin is not serious about negotiating the end of the war. He has said he wants to wait and see what happens in November 2024. We're preparing for that eventuality so we can have a negotiation that will actually stick as opposed to the track record of broken agreements that President Putin has made with a whole range of his neighbors up until now. So that's successful diplomacy, not mere diplomacy. Sen. Rand Paul (R-KY): There are actually some who say we're back to about where we started as far as negotiating and tens of thousands of people have died on both sides, and we haven't been successful. But I still hear only war and I don't hear diplomacy. James O'Brien: No but I think what we're looking at is successful diplomacy. I just spent last weekend with 66 countries talking about the basis of a successful peace in Ukraine. Russia didn't show up. That, again, is the problem. You don't have a willing partner on the other side, so simply saying that there must be talks is -- you're asking for a monologue, not diplomacy. 55:00 Sen. Jeff Merkley (D-OR): You know, I'm really struck by the parallel to the journey of Chamberlain to Munich to say, "Okay, Hitler, you can take a third of Czechoslovakia" and then he declared peace in our time, under the assumption that somehow this would not whet Hitler's appetite. Did Chamberlain's strategy work? James O'Brien: No. Sen. Jeff Merkley (D-OR): Will this strategy now, of us bailing on Ukraine to appease Putin, work? James O'Brien: No, it'll invite more aggression. 1:01:40 Sen. Pete Ricketts (R-NE): Do you think we should condition US aid to prevent US tax dollars from supporting PRC-owned or controlled entities from providing the reconstruction? James O'Brien: Senator, we do. That's why it's so important to have the supplemental so that we remain in the game and can set the conditions that make it impossible for opaque, illegitimate contractors like the Chinese to enter. And I know my colleagues can speak at some length about how in energy, telecomms, and other sectors we do exactly that. But if we're not there, then we can't we can't provide the guarantees you want. 1:05:35 James O'Brien: There are about $2.2 billion to go to both the energy supply and to the economic activity that's needed for Ukraine to begin to repair its access to the outside world. That's also important to us. When Russia invaded Ukraine, grain prices went up six times in many places around the world, because Ukraine is an incredibly important part of the global grain trade. The work that AID does to help Ukrainian farmers get their products to market, in the supplemental, the $100 million that is for demining will help farmers get their product to market. All of that directly benefits the markets in which our consumers are a part. So if we do all that, if we can get them to about pre-war export levels, that's an extra $6 billion a year in tax revenue just from the exports, as well as what the industries pay and what happens around the society. Now, Secretary Pritzker, and she should come and testify this herself, she's doing an outstanding job at building a strategy that lets us focus our efforts in key places, so that Ukraine's economy will begin to work and contribute to the global economy, even while this war is going on. All of that works together to make sure that Ukraine can succeed and has the leverage needed when we get to a negotiation, as Senator Paul wants. 1:13:55 Geoffrey R. Pyatt: So I would point out that the greatest threat to the energy grid today are the Shahed drones, which Russia is now beginning to industrialize the production of those. We can talk about that in a classified setting, but there is a direct Iran-Russia nexus in the attacks on Ukraine's energy system. 1:24:10 Geoffrey R. Pyatt: We are working as hard as we can to accelerate that trend. We do that through two mechanisms. One is by accelerating our energy transition, both here in the United States, but also globally, as the Biden administration has done through the Inflation Reduction Act to reduce the dependence on fossil fuels. But the other aspect of this is what we are doing systematically to reduce Russia's future energy revenue. Just last week, for instance, we leveled new sanctions against a project in the in the Arctic, Arctic LNG 2, which is Novatek's flagship LNG project, which Novatek set in motion with the aspiration of developing Russia as the largest LNG exporter in the world. Our objective is to kill that project, and we're doing that through our sanctions, working with our partners in the G7 and beyond. 1:26:00 James O'Brien: Russia is losing its lucrative markets. That's what got it rich enough to afford this war. It's losing out in the sectors of innovation that are going to drive economic development in the future. So we look at this and say, "Does it put pressure on Putin to get to the table?" Well, yes, it does. It's going to take a little time. He started the war with 640 billion in a rainy day fund. By the start of this year, despite record profits last year, he was down around 580, we immobilized 300 of that, and he spent down further from there. So that gives them a year, two years maybe, of run room on that rainy day fund that all came from selling oil and gas. So that's gone. The second thing is that we don't see Russia able to play in the sectors that are going to drive innovation and economic growth in the future. The areas of quantum mechanics, artificial intelligence, the energy transition, including the new nuclear technologies that are coming on board, and Senator Risch, your work on this I really appreciate, because Russia entangled countries in these long term networks of corruption, with generation-long Rosatom contracts. We're now competing for those again, and taking those sectors away from Russia. That changes the long term prospect from what it was. The result of all this is we anticipate that Russia's GDP is going to be at least 20% smaller by 2030 than it would be if Putin had not started this war. So it's a long term strategic loss for him, and it creates a great opportunity for us in a number of important sectors. 1:35:30 Sen. Marco Rubio (R-FL): I understand, and this is not critical. I agree that we can't allow borders to be changed unilaterally and we have to stand with our allies. I'm not diminishing any of those things. But those arguments are too vague. They make sense here, but I'm just telling you they're too vague. This notion that we need to do whatever it takes for however long it takes, is also misguided. Not because that's not necessarily what we need to do, but because that's not going to be enough for people who are asking these questions. I would just say if you had an opportunity, any of you three, or all you three to talk to someone, say someone that came up to me a week ago and said, "Why are we still putting all this money in Ukraine. I hate Putin, I hate what he's done, but we've got all these other things domestically and in other parts of the world that are more important, including China, and now what's happening in the Middle East. How are we going to be spending $60 billion every six months? For how long? Given the debt that we already have?" What would you say to them? And how would you explain to them that this fits into their national interest in that perspective I've just outlined? James O'Brien: That's really well framed, Senator, so I'll do my best here. I think the first thing I'd say is you got to shore up your own base. If we're going to confront China over the next decades, it's 1.4 billion people, that's looking to write the rules that the world economy will run on. We go at them with a coalition of 50-odd countries, Europe is about 600-700 million of that, we're 350 million. With that already, we're set to compete really effectively. Ukraine, though, is a challenge by Putin trying to fray that foundation. So we have to shore that up if we're going to have the heft to compete with China over time. The battle over Ukraine also allows us to reinvigorate our own industrial base, we're creating new energy technologies and putting them in place around the world. We're building new defense technologies, the work that's being done in IT, all of that's included in this supplemental, and that's going to make us better able to defend Taiwan, to work in the South China Sea, than we have otherwise. The final point I'd make is, this is the wrong time to walk away because Ukraine's winning. It's already taken back half the territory Putin seized since February 2022. It opened up the Black Sea grain lanes that Putin tried to shut down in July, did that mostly with its own creativity around a whole set of interesting drones and other technologies that are going to contribute to our security as Ukraine gets closer to NATO. So those are all reasons you don't walk away when you're partway through the job. 1:41:10 Geoffrey R. Pyatt: Ukraine is not a charity case. In economic and development terms, it's an opportunity. Developing that opportunity depends on restoring a level of peace. But as we look to the future, you're going to have a Europe which has decoupled from Russian energy supplies, which means that there's a hole of about 130 BCM per year in energy supply that Europe is going to have to fill. Over the short term, some of that is American LNG, but that's a very expensive option. Ukraine has fantastic resources on wind, on solar, on biomass. It has Europe's second largest civil nuclear industry. It has developed and has demonstrated an extraordinary technological acuity. Just look at how clever Ukrainian soldiers have been in the application of drone technology. These are all the skill sets that Ukraine will need to prosper as a member of the European Union. My colleague, Assistant Administrator McKee, referred to the statement which European President Vanderlaan delivered today welcoming the significant progress that Ukraine has made on its reforms, and her and the Commission's determination to move ahead with Ukraine's accession to the European Union. And I would say as somebody who served as an American ambassador in the EU for six years, what Ukraine represents is a demographically young population, a population which is fantastically committed to the values of the European Union. Ukraine is the only place in the world where people have fought and died under the flag of the EU for the values that are represented in the European constitutions. So I think these are the investments in the leadership that Secretary Pritzker is providing to help our companies and companies around the world begin to make plans for the day after and to work with Ukrainians to keep pushing forward the reforms, which are fundamental to creating the environment where American energy companies, renewable energy companies can come into Ukraine, where we can use Ukraine to help to fill the huge challenges that our global supply chain faces. In the Soviet Union, Ukraine was the center of Soviet metallurgy, the center of Soviet petrochemicals industries, all of those latent skills are still there. You talked about nuclear, Ukraine has a company in Kharkiv, Turboatom, which is one of the few facilities in all of Europe that has the industrial capacity to produce the large steel enclosures that are part of building modern nuclear reactors. So I applaud your focus on this and I know I speak for all three of us and how systematically we're focused on trying to lay the foundation for that better future that the Ukrainian people so richly deserve. 1:53:55 James O'Brien: Ukraine has won back 50% of the territory Russia took since February of 2022. The second piece that's important: Putin is playing a waiting game, like many Muscovite rulers before him. So it's difficult to get a decisive battle. So what we need is what's in the supplemental that has the ability to fight this fight over some time, and we do see real success. So in the Black Sea, Russia attempted to stop Ukraine from exporting. In July, exports were down 2-2.5 million tons; they're already more than doubled, and expect to see them go up substantially more. That's because of what Ukraine has done with its technology and its new weapons systems, more of which would be provided by the supplemental. February 4, 2014 On Demand News on YouTube Speakers: Victoria Nuland, Assistant Secretary of State for European and Eurasian Affairs, 2013-2017 Geoffrey Pyatt, United States Ambassador to Ukraine, 2013-2016 Clips Victoria Nuland: Good. So I don?t think Klitsch [Vitali Klitschko] should go into the government. I don?t think it?s necessary, I don?t think it?s a good idea. Geoffrey Pyatt: Yeah, I mean I guess, in terms of him not going into the government, just sort of letting him stay out and do his political homework and stuff. I?m just thinking in terms of, sort of, the process moving ahead, we want to keep the moderate Democrats together. The problem is going to be Tyahnybok and his guys and I?m sure that?s part of what Yanukovych is calculating on all this. Victoria Nuland: I think Yatz [Arseniy Yatsenyuk] is the guy with the economic experience, the governing experience. He?s the guy. What he needs is Klitsch [Vitali Klitschko] And Tyahnybok On the outside, he needs to be talking to them four times a week. You know, I just think Klitsch [Vitali Klitschko] Going in he?s going to be at that level working for Yatsenyuk it?s just not gonna work. Geoffrey Pyatt: We want to get someone out here with an international personality to come out here and help to midwife this thing. And then the other issue is some kind of outreach to Yanukovych. We?ll probably regroup on that tomorrow as we see how things fall into place. Victoria Nuland: So on that piece, Jeff, I wrote the note, Sullivan?s come back to me saying ?you need Biden,? and I said probably tomorrow for an attaboy and get the deets to stick, Biden?s willing. Geoffrey Pyatt: Great. December 19, 2013 The Atlantic Council Speaker: John McCain, U.S. Senator from Arizona, 1987-2018 Clips 16:45 Sen. John McCain: If Ukraine?s political crisis persists or deepens, which is a real possibility, we must support creative Ukrainian efforts to resolve it. Senator Murphy and I heard a few such ideas last weekend?from holding early elections, as the opposition is now demanding, to the institution of a technocratic government with a mandate to make the difficult reforms required for Ukraine?s long-term economic health and sustainable development. Decisions such as these are for Ukrainians to make?no one else?and if they request our assistance, we should provide it where possible. Finally, we must encourage the European Union and the IMF to keep their doors open to Ukraine. Ultimately, the support of both institutions is indispensable for Ukraine?s future. And eventually, a Ukrainian President, either this one or a future one, will be prepared to accept the fundamental choice facing the country, which is this: While there are real short-term costs to the political and economic reforms required for IMF assistance and EU integration, and while President Putin will likely add to these costs by retaliating against Ukraine?s economy, the long-term benefits for Ukraine in taking these tough steps are far greater and almost limitless. This decision cannot be borne by one person alone in Ukraine. Nor should it be. It must be shared?both the risks and the rewards?by all Ukrainians, especially the opposition and business elite. It must also be shared by the EU, the IMF and the United States. All of us in the West should be prepared to help Ukraine, financially and otherwise, to overcome the short-term pain that reforms will require and Russia may inflict. April 20, 1994 Southern Center for International Studies Speaker: Arthur Dunkel, Director-General of the World Trade Organization, 1980-1993 Clips 26:55 Arthur Dunkel: If I look back at the last 25 years, what did we have? We had two worlds: The so-called Market Economy world and the centrally planned world; the centrally planned world disappeared. One of the main challenges of the Uruguay round has been to create a world wide system. I think we have to think of that. Secondly, why a world wide system? Because, basically, I consider that if governments cooperate in trade policy field, you reduce the risks of tension ? political tension and even worse than that." Music by Editing Production Assistance
2023-12-17
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Bonus! December Preview with Justin Robert Young

December is busy season in a Congress that has done nothing all year. In this bonus episode - which features Congressional Dish host Jen Briney as a guest on the December 1st episode of Politics, Politics, Politics with Justin Robert Young - we take a look at what we expect in Congress during the final month of a Congressionally chaotic year. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via  Support Congressional Dish via  (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to:  Please make checks payable to Congressional Dish Thank you for supporting truly independent media!   Listen to the full December 1 episode of Politics, Politics, Politics  
2023-12-05
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CD285: The Indicteds: Rep. George Santos and Sen. Robert Menendez

Two members of Congress, one from each side of the aisle and each branch of Congress, are currently under criminal indictment, yet are steadfastly clinging to their roles as lawmakers. In this episode, we?ve got the dirt straight from the criminal indictments of Rep. George Santos of New York and Sen. Bob Menendez of New Jersey. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Sen. Bob Menendez The Indictment Egypt Aysha Bagchi and Josh Meyer. November 13, 2023. USA Today. Mark Mazzetti and Vivian Yee. October 14, 2023. The New York Times. Larry Neumeister. October 12, 2023. AP. Nicole Hong et al. October 1, 2023. The New York Times. Jeremy M. Sharp. May 2, 2023. Congressional Research Service. Grand Ethiopian Renaissance Dam October 24, 2020. BBC News. September 2, 2020. The New York Times. Marriage Nina Burleigh. October 31, 2023. Intelligencer. Previous Indictment Nick Corasaniti and Nate Schweber. November 16, 2017. The New York Times. April 1, 2015. U.S. Department of Justice, Office of Public Affairs. Initial Appointment to Senate Marek Fuchs. December 9, 2005. The New York Times. Rep. George Santos The Indictment House Ethics Committee Investigation November 16, 2023. House Ethics Committee. November 9, 2023. House Ethics Committee, Investigative Subcommittee. Brazil Fraud Case Andrew DePietro. October 21, 2022. Forbes. Expulsion Attempts Kevin Freking. November 17, 2023. PBS NewsHour. Kevin Freking and Stephen Groves. November 2, 2023. AP. Wealthiest Districts Andrew DePietro. October 21, 2022. Forbes. IRS Doesn?t Fight Dark Money Maya Miller. April 18, 2019. ProPublica. Bills Audio Sources October 28, 2023 Chat Box with David Cruz Clips 3:25 Sen. Bob Menendez (D-NJ): You know, I have drawn from my personal credit union savings account, for the better part of 30 years, $400 every week in cash. And while that may seem old fashioned, some people may think of it as crazy, the reality is that the government has those records. They have the accounts that show that and they chose not to use it. So, you know, this is why I look forward to being in a position to actually speak to these issues, so that New Jerseyans will have a different set of facts than the ones they have right now. 5:20 Sen. Bob Menendez (D-NJ): I was not barred from going into an intelligence briefing. I still have all of my intelligence credentials. 7:20 Sen. Bob Menendez (D-NJ): I have not missed a beat. I've been here for votes and for hearings, and for pursuing the issues that are important to the people in New Jersey. 11:35 Sen. Bob Menendez (D-NJ): I still serve on the Senate Foreign Relations Committee, which gives me a perch on all of these global issues, and I am pursuing them in the same way as I did before. The difference is that I am not leading the [Senate Foreign Relations] Committee, but I am very much active in the Committee pursuing the things that I care about for New Jersey. 15:25 David Cruz: So the considerations that Egypt received, including getting a green light from your committee, the quid pro quo as it were, was Egypt behaving better in exchange for arms sales and other considerations? Sen. Bob Menendez (D-NJ): Each consideration depended upon the nature of the sale, whether it was for example, defensive equipment, whether it was equipment for the Sinai, where they are playing a vital role for security with Israel, which everybody -- Democrats and Republicans -- have called for. So these followed the traditional uses of both foreign aid and arms sales in a way to ensure that the US national security interests was pursued and that's simply the case. 16:15 David Cruz: And in the case of one of your co-defendants receiving a contract to certify halal ? Sen. Bob Menendez (D-NJ): I can't answer for my co-defendant, you'll have to ask him. David Cruz: Well, the question is, was it your relations with Egyptian officials that helped ease the way for him to get that contract? Sen. Bob Menendez (D-NJ): David, there's a lot of suggestions. As a matter of fact, as I read the indictment, there's a lot of inferences, but not a lot of facts at the end of the day. Those inferences try to play and create a storyline. That is the most negative pejorative storyline you can create. But when those get challenged by the facts, as we will, in the legal proceedings that both motions and trials will allow us to do, then we will see a totally different story. May 27, 2021 Senate Foreign Relations Committee Witnesses: Robert F. Godec, Acting Assistant Secretary of State, Bureau of African Affairs Sarah Charles, Assistant to the Administrator, Bureau for Humanitarian Assistance, United States Agency for International Development Clips Sen. Bob Menenedez (D-NJ): Then, finally, I will make a comment. It is not a question. I have spoken to the Egyptians on more than one occasion on this issue at their behest. I have a real sense that if the GERD issue is not dealt with in a way that assures them of their concerns about the Nile flowing into what would be the heart of their water supply in Egypt that they will do what is necessary. I do not like red lines, but they have suggested that they have red lines and I take them at their word that they have red lines. Not that they are desirous of doing that. They also have a very strong expression that they hope to have a resolution peacefully, but that they have their own red lines. I hope that we are engaging in that very robustly because the last thing we need, in addition to everything that is going on in Ethiopia, in addition to the possibility of a famine, to the sexual violence that is taking place, is to then have a military conflict over the GERD. So I just seriously hope we are fully engaged and understand where the parties are and how serious some of them are of purpose. Executive Producer Recommended Sources Music by Editing Production Assistance
2023-11-20
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CD284: Thieving Russia

While the world is distracted, members of Congress are writing bills designed to steal Russia?s money and give it to Ukraine. In this episode, listen to the pitch being made to Congress as we examine if this is a good idea. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Taking the Russian money: is it legal? Lee C. Buchheit and Paul Stephan. October 20, 2023. Lawfare. Chelsey Dulaney and Andrew Duehren. October 11, 2023. The Wall Street Journal. Lawrence H. Summers, Philip Zelikow, and Robert B. Zoellick. June 15, 2023. Foreign Affairs. Paul Stephan. April 26, 2022. Lawfare. Laurence H. Tribe and Jeremy Lewin. April 15, 2022. The New York Times. April 15, 2021. President Joe Biden. White House Briefing Room. What we?re being told about Ukraine Secretary of State Anthony Blinken [@SecBlinken]. November 3, 2023. Twitter. Visual Journalism Team. September 29, 2023. BBC News. June 2023. Reuters. Israel-Hamas War Jaclyn Diaz and Aya Batrawy. November 7, 2023. NPR. Sharon Zhang. November 2, 2023. Bills Audio Sources October 31, 2023 Senate Appropriations Committee Witnesses: Antony Blinken, Secretary, U.S. Department of State Lloyd Austin, Secretary, U.S. Department of Defense Clips 1:05:05 Secretary of State Antony Blinken: If you look at total assistance to Ukraine going back to February of 2022, the United States has provided about $75 billion our allies and partners $90 billion. If you look at budget support, the United States has provided about $22 billion during that period, allies and partners $49 billion during that period; military support, we provided about $43 billion allies and partners $33 billion; humanitarian assistance, the United States $2.3 billion allies and partners 4.5 billion, plus another $18 to $20 billion in caring for the many refugees who went to Europe and outside of Ukraine. October 19, 2023 Commission on Security and Cooperation in Europe (The Helsinki Commission) Witnesses: Eliav Benjamin, Deputy Head of Mission, The Embassy of Israel to the United States Jamil N. Jaffer, Founder and Executive Director, National Security Institute at George Mason University Dr. Jonathan Schanzer, Senior Vice President, Foundation for the Defense of Democracies Dr. Dan Twining, President, International Republican Institute Oksana Markarova, Ukrainian Ambassador to the United States of America Clips 19:25 Eliav Benjamin: Understanding in the most unequivocal manner and in the clearest way that these are evil people. If we can even call them people. This is Israel's 9/11, only if you take the proportion of the size of Israel, this is 9/11 times 10, at least. 20:45 Eliav Benjamin: Because these terrorist organizations are not only against Israelis or against Jews, and not only in Israel, they are against mankind and anything which calls for decency, any entity and anybody who calls for protecting human rights and protecting individuals and protecting civilians. 21:25 Eliav Benjamin: Hamas have no value for human life, while Israel is doing its utmost to protect human life, including Palestinians in Gaza by even calling for them to go down south so that they won't be affected by the war. Hamas is doing everything in its power to harm civilians, to harm its own civilians. And everything that Hamas is committing -- and committed -- is no less than war crimes. And if you want crimes against humanity, and this is while Israel is working within the international human rights law, and within the military law. 28:15 Rep. Steve Cohen (D-TN): Ambassador we have attempted to get some monies to from Putin and from the Soviet Un -- the oligarchs, to help rebuild Ukraine. Do you have any new information about that, or concerns? Oksana Markarova: Thank you for this question. First of all, I think it's very just that all this horrible destruction, which only for the first year of the war the World Bank estimated at $411 billion -- just the physical destruction -- has to be compensated and paid for by the Russians. So with regard to the Russian oligarchs and everyone who finances this war, supports this war, thanks to Congress we already have the possibility to confiscate it through the courts and DOJ has already moved forward with one confiscation of malfeasance money -- $5.4 million, and others. It is going to take time. But I think the major question right now to discuss with all the G7 is the Russian sovereign assets. We know that there are at least in the vicinity of 300-400 billion, or maybe even more, frozen by G7 countries. Not only that, but we recently discovered there are about $200 billion that are frozen in the Euroclear system in Belgium. So I'm very glad that there are more renewed talks right now between the G7 Ministers of Finance on how to confiscate and how to better use this money even now. I think we have to join forces there because again, we're very grateful for the American support, we are very much counting on this additional supplementary budget, but at the end of the day, it's not the American, or Ukrainian, or European taxpayers who have to pay for this, it is the Russians who have to pay for their damages. We look forward to working with Congress and we're working very actively with the administration, the State Department and Treasury, on how to better do it. As the former Minister of Finance, I not only believe -- I know -- that it can be done and I know this is a very specific case, that will not jeopardize the untouchability of the Sovereign Money, which is normal in the normal circumstances. This is a very specific case of a country that has been condemned by 154 countries in the UN for the illegal aggression. We have in all three major cases, the cases against Russia on both aggression and genocide and everything else. And it's only natural and just to use the sovereign assets as well as the private assets of Putin's oligarchs to compensate and to pay this. 32:50 Eliav Benjamin: Look at the charter of Hamas, which calls for destruction, annihilation of Jews, of Israel and yes, wants to control everything from the Mediterranean Sea until the Jordan River. 33:00 Eliav Benjamin: That is their aspiration, that is what they want to do, with zero care about civilians, including their own whom they take us human shields. As we're speak now, they're firing rockets from underneath hospitals, from underneath schools, from underneath mosques, from within residential areas, putting their own people at risk and sending them to die as well. This is not what Israel is about, but this is what Hamas is about and has been about. And now once and for all, unfortunately, really unfortunately, it took such a horrific war that they launched on Israel for the whole world to realize what Hamas is really about and what we've been saying for so many years that Hamas stands for. But it's not only Hamas: it's Hamas, it's the Palestinian Islamic Jihad, it's Hezbollah, it's all of these terrorist organizations who have zero care about human beings. This is who we should go after, and make sure they don't do any more harm. 39:10 Jamil Jaffer: It was the single deadliest day in Israel's history, single deadliest day for the worldwide Jewish community since the Holocaust. The equivalent of over a dozen 9/11 attacks on a population adjusted basis. Let me say it again. On the day of the 9/11 attacks, we had about 280 million Americans and we lost approximately 3000 Americans that day. Israel has lost 1400 have their own in a population of approximately 9 million -- over a dozen 9/11 attacks. 41:15 Jamil Jaffer: There's a key connection between these two fights. We know that Iran today supplies all manner of drones to Russia in its fight in Ukraine. We know that Iran has troops on the ground in Ukraine, training Russians on the use of those drones. We know that Iran is considering providing short range ballistic missiles to Russia, in that conflict. Russia, for its part, has provided Iran with its primary source of Conventional Munitions and nuclear technology for the vast majority of the time. Now, the key connection between these organizations is important to note. It's not just Russia and Iran; it's China and North Korea as well. These are all globally repressive nation states. They repress their own people, they hold them back, they give them no opportunity, and then they seek to export that repression to other parts of the globe, first in their immediate neighborhood, and then more broadly across the world. These nations are increasingly working together. We see China and Russia's no-limits partnership. We see President Xi saying to President Putin, in an off hand conversation that the world heard, that there are changes that haven't been seen in 100 years, and Russia and China are leading those changes. We know that for decades, Iran and North Korea have cooperated on ballistic missile and nuclear technology. We know that today in the fight in Gaza, Hamas is using North Korean rocket propelled grenades. So the reality is these globally repressive nation states have long been working together. And it is incumbent upon the United States to stand with our friends in Ukraine and our allies in Israel in this fight against global repression. 41:35 Dr. Dan Twining: It's vital not to mistake Hamas's control of Gaza with legitimacy. There have been no elections in Gaza since 2006. Hamas will not hold them because it thinks it will lose. Polling from September, a month ago, shows that only a quarter of Palestinians support Hamas leading the Palestinian people. Before the conflict, 77% of Palestinians told pollsters they wanted elections as soon as possible. A super majority tells pollsters that Hamas is corrupt. It is a terrorist organization, not a governing authority that seeks better lives for Palestinians. Residents of Gaza suffer poverty, isolation, and violence at its hands. 43:25 Dr. Jonathan Schanzer: Israel has just suffered in Iran-sponsored massacre, Ukraine is struggling to repel Russian forces, and Taiwan watches with grave concern as China threatens to invade. America must view these three embattled democracies as important assets. And it must view these three adversaries as a threat to the US-led world order. As we speak, there is a very real possibility of a regional war erupting in the Middle East. The Islamic Republic of Iran has armed and funded Hamas and Hezbollah along with other factions in the region. Recent reports point to the existence of an Iranian-led nerve center in Beirut that is designed to help these terrorist groups target Israel more efficiently. Fortunately, the IDF has thwarted Iranian efforts to create a new terror proxy in the Golan Heights. Israel has repeatedly destroyed most, if not all, of what Iran is trying to stand up there. However, Iran-backed militias do remain in Syria, and Russia's presence in Syria is complicated all of this. Moscow's missile defense systems have forced Israel to take significant precautions in the ongoing effort to prevent the smuggling of advanced Iranian weapons from Syria to Lebanon. These are precision guided munitions. We've never seen a non-state actor or a terrorist group acquire these before and Russia is making this more difficult. The operations to destroy these weapons in Syria are ongoing. They often take place with Russian knowledge. It's an uneasy arrangement and because of that, the Syrian front is still manageable, but Russia's role in the region is far from positive. Moscow continues to work closely with both Iran and Hezbollah. In fact, Russian-Iranian relations have deepened considerably since Russia's invasion of Ukraine in 2022. This goes beyond the sanctions busting that was the basis of their relationship before all this started. Russia has received UAVs from Iran, which we've heard today, Tehran has sent advisors to train Russian personnel, and since last summer, Russia has launched over 2000 Iranian UAVs into Ukraine. Moscow now wants to produce some of these UAVs domestically and so Russia and Iran are currently working together to increase the drones' range and speed. Iran has supplied other material to Russia like artillery shells and rockets. In return, Tehran wants Russia to provide fighter jets, attack helicopters, radar and combat trainer aircraft, and more. Moscow has sent to Tehran some captured Western weapons from Ukraine. These include javelin, NLAW anti-tank guided missiles, and Stinger MANPADS. Amidst all of this, on top of it all, concerns are mounting about a Chinese invasion of Taiwan. Beijing has openly intimidated the island nation. Within a 24 hour time span in July, 16 PLA warships approached Taiwan, accompanied with over 100 different aircraft sorties. China's calculus about an invasion of Taiwan could be influenced heavily right now by what the United States does in Ukraine and in Israel. Ihe landscape is clear: China, Iran and Russia are working together. Our policy must be to deny them the ability to threaten our friends and our interests. 47:45 Dr. Jonathan Schanzer: It's great news. I was gonna recommend it, but it's already happened: the United States has sent two of its Iron Dome batteries based in Guam to Israel, en route already. 52:15 Dr. Dan Twining: If America's three greatest adversaries are going to actively collaborate in armed attacks on our allies, that's all the more reason for us to ensure that friendly democracies prevail in the fight. Giving Ukraine and Israel what they need to restore their sovereignty and security is essential. Appeasing aggression in one theater only invites belligerence in another. Make no mistake, China is watching our reaction to the wars on Ukraine and Israel with great interest. If we don't show the will and staying power to help our friends win, we only embolden Chinese designs in Asia. Defeating aggression in Europe and the Middle East is central to deterring aggression in Asia. 1:09:55 Dr. Jonathan Schanzer: I am going to use the current crisis right now to sort of explain how America can get a win. That attack by Hamas was sponsored by Iran. Hamas is an Iran-back terrorist organization that also enjoys the support of China and Russia. As Israel has now readied to go into the Gaza Strip and to destroy this terrorist organization with the support of the United States, we're now seeing Iran-backed proxies threaten a much wider war. We're watching Hezbollah and Lebanon, Shiite militias in Syria, potentially other groups in other parts of the region. What needs to happen here right now is America needs to determine the outcome of this conflict. And by that, I mean it needs to deter Iran, it needs to deter Hezbollah and any other actor that might intervene, and force them to watch helplessly as our ally destroys Hamas. Watch them look on helplessly as one of their important pieces is removed from the chessboard. If we can do that, then I think we're now in the process of reestablishing deterrence after having lost it for many years. 1:14:15 Sen. Sheldon Whitehouse (D-RI): Along with Ranking Member [Jim] Risch, I'm the lead on the what we call the REPO Act, which would authorize the President to work with other countries in Europe that are also home to frozen Russian sovereign assets, and create a procedure for seizing those assets and directing them to Ukraine to be used for rebuilding and other purposes. I think there are mixed feelings in the administration about this, but they seem to be moving our way. I'd love to have your thoughts on the value of grabbing those sovereign assets, not just as additional resources for Ukraine, but also as a powerful signal to Putin that his behavior is going to have real punishment and hitting him good and hard right in the wallet, I think, would be a good added signal. 1:15:20 Sen. Sheldon Whitehouse (D-RI): The second is simply to make sure that we do a better job of grabbing Russian oligarch assets. We have a predicament right now, which is that if you're a US citizen, and you're driving down the highway and you've got $400,000 in unexplained cash in your car, the police can pull you over and they can seize that. If you are a foreign, Russian, crooked oligarch, and you have a $400 million yacht someplace, you have more rights than that American citizen, in terms of defending your yacht. It's a very simple procedure, it's called "in rem." You move on the yacht rather than having to chase through all the ownership structures. And I would very much like to see us pass a bill that allows us to proceed against foreign oligarchs', criminals', and kleptocrats' assets in rem. 1:16:50 Dr. Jonathan Schanzer: The seizing of assets and redirecting them to Ukraine, I think, sounds like a solid thing for the United States to do. I think, though, it would make sense to do this with a coalition of countries. So that the US is not singled out -- Sen. Sheldon Whitehouse (D-RI): That's what the legislation requires. In fact, the bulk of the funds are actually held in European countries, so acting on our own would not be sensible. Dr. Jonathan Schanzer: It wouldn't be effective, correct. So getting the Europeans on board, and by the way, getting the Europeans to chip in a bit more, just as we are, I think is also a very sound policy. As far as targeting the oligarch assets, I fully understand your frustration. When I worked at the Treasury Department trying to track those kinds of assets was never easy. We did work with a sort of shorthand version of, if we're 80% sure that we know what we're dealing with we're going to move first and then adjudicate after it's been done. And by and large, that worked out very well during the height of the war on terror. And there was an urgency that I think needs to be felt now, as we think about targeting Russian assets too. 1:18:00 Sen. Sheldon Whitehouse (D-RI): To follow me on my path of in rem Latinate legal terms. There's also qui tam out there, which allows individuals to bring fraud actions in the name of the United States, and if it turns out there really is fraud, they get a share of it. It would be nice to have people who work for, let's say, a Russian oligarch to be able to be paid a bit of a bounty if they come in and testify and say, "Yep, definitely his boat every time we go out, he's on it. Every time the guests come they're his guests and we call him boss." Things like that can make a big difference, so we're trying to push that as well. Dr. Jonathan Schanzer: That sounds like something for the Rewards for Justice program at the State Department. They might be able to expand it. We already have bounties for those that provide evidence leading to arrests of terrorists, why not oligarchs? Sen. Sheldon Whitehouse (D-RI): Correct. 1:24:40 Dr. Jonathan Schanzer: Qatar has, for the last 10 or 12 years, had a an external headquarters. Some of [Hamas's] political leadership has been based there: Ismail Haniyeh and Khaled Meshaal both call Qatar home. Of course, this is not new for the Qataris. They've also hosted all manner of other terrorist organizations in that country. It's the Taliban, al Qaeda, ISIS. It's well known at this point that Qatar is a hospitable place. They just don't agree with our definition of terrorism. Fundraising takes place there, all sorts of organizational activities take place there, and people are free to come and go. It is a safe haven for them. It is extremely dangerous that we have bestowed upon that country the label of major non-NATO ally, and that this is allowed to continue. They're offering right now their "good offices" -- I'll put those in air quotes -- to try to negotiate the release of the 302 hostages. This is not in Qatar's is interest. They are advocating on behalf of Hamas, as they have been for a long time. This should not be allowed to stand. 1:28:10 Dr. Jonathan Schanzer: Hezbollah is based in Lebanon primarily, although they've got a significant base of operations in Latin America right now, and of course they've got a lot of operatives running around in Tehran. They are a wholly-owned subsidiary of the regime in Iran. Just to give you a sense of the threat, right now Hezbollah is threatening to open up a second front with Israel. While the fighting rages in Gaza, in the north of Israel there is a second front that could very well be open. There have been dozens of rockets that have been fired, dozens of anti-tank missiles infiltrations into northern Israel. This is very disconcerting. This is one of the things that I think the President is trying to deter at this moment, to deter a second front from opening. Hezbollah is considered to have an army that is equal in strength to the average European army. It has 150,000 rockets right now facing south at Israel. It's got precision guided munitions that could hit strategic targets, like Israel's nuclear facility, or like its chemical plant. These are things that could create catastrophic attacks, and we could be hours or days or weeks away from watching those threats materialize. And so this is why it is imperative right now that the US mount the deterrence that is necessary to stare down Iran and to stare down Hezbollah and to allow Israel to be able to do what it needs to in Gaza and hopefully end this crisis. 1:31:15 Rep. Marc Veasey (D-TX): What does it look like if a Palestinian family of four is being interviewed for safe passage into a neighboring country or nearby country? What exactly does that look like? What does that processing and that vetting look like? Dr. Jonathan Schanzer: I'm going to make a suggestion here. I don't know how that kind of vetting can happen. You know, you're looking at a territory roughly the size of Washington DC, with 2.2 million people that had been subjected to Hamas rule for 16 years. How you start to figure out who's okay and who's not at this stage in the game, who's a threat and who isn't, is going to be really challenging. I wrote a piece in the Wall Street Journal with a colleague of mine, Mark Dubowitz, our CEO, on Monday. I want to make this suggestion: I've already identified a number of the countries that have been Hamas supporters over the years, those that have financed and provided the weapons and the training to Hamas. I think there should be significant pressure on those countries to take in the refugees. Have a clear message from the United States that they created this problem, and it is now their problem to take care of these 2 million people. Quite frankly, I don't care who's radicalized when they go to these countries that have been supporting a radical cause for as long as they have. I think this would be justice. October 18, 2023 House Committee on Foreign Affairs Witnesses: Philip Zelikow, Senior Fellow at Stanford University?s Hoover Institution and White Burkett Miller Professor of History at the University of Virginia Rebeccah Heinrichs, Senior Fellow and Director of the Keystone Defense Initiative at the Hudson Institute Clips 14:35 Rep. Michael McCaul (R-TX): The Russian sovereign assets is a winner in my judgment. If we can tap into the right -- the very people who started this war and this conflict, in my judgment, should be paying for the cost, and not as much the US taxpayer. And that's why I introduced the REPO Act, the bipartisan, bicameral legislation that demands that the Biden administration transfer frozen Russian sovereign assets to the Ukraine effort. It's beyond time that Russia pay for the war that it created. My bill prohibits the Biden administration from unfreezing Russian sovereign assets until Russia ends its unprovoked war of aggression and agrees to compensate Ukraine for the damages it has inflicted. 16:05 Rep. Michael McCaul (R-TX): To be clear, the war crimes and genocide committed by Russia cannot be reversed by money alone. 22:30 Rep. French Hill (R-AK): My approach was crafted to be consistent with US Policy and International Law by amending the International Emergency Economic Powers Act IEEPA, and using its established framework and existing definitions. As a former Treasury official, in my view, this is a better legislative approach. This is consistent with well established international precedent, whereby the United States work with international partners to establish a fund like we saw in Afghanistan in 2022. The Iran-US Claims Tribunal in 1981, the UN compensation fund for Kuwait in 1991, following the invasion by Iraq. 22:40 Rep. French Hill (R-AK): I too have introduced a bill on this topic, HR 5370. And I appreciate the Foreign Affairs staff working with me on that. My bill would give the President authority to seize and transfer title of Russian sovereign assets within the United States jurisdiction into an international fund for the sole purpose of Ukraine's eventual reconstruction and humanitarian relief. I'm grateful to Chairman McCaul and I co-sponsor his bill on this topic, as well for his leadership. 24:10 Rep. French Hill (R-AK): Considering most Russian sovereign assets are actually located outside the United States, it's important for our partners and allies around the world to introduce and pass similar companion legislation rather than having the US act unilaterally. 24:30 Rep. French Hill (R-AK): Let me be clear, I consider Russian Federation sovereign assets inclusive of all state owned enterprise assets and those of Russian publicly traded companies, like Gazprom, that are controlled by more than 50% by the Russian Federation. 26:30 Philip Zelikow: Economic warfare is the real center of gravity in this war. Economic warfare is the center of gravity in the war. I know we all watch the daily updates from the battle front lines. You know, this movement here, that movement there. This is a war of attrition. It's going to be decided by economic and industrial staying power as the war continues almost certainly into 2025 and perhaps beyond. 27:00 Philip Zelikow: In that struggle, the economic warfare against Russia has achieved some gains, and will have some more gains over the long haul. Russia's economic warfare against Ukraine has been devastating and is not sufficiently appreciated. Ukraine lost 30% of its GDP in the first year of the war. 1/3 of the population of Ukraine is displaced, half externally half internally. Russia is waging economic warfare on three main fronts. It's destroying Ukraine's infrastructure, and will do another energy infrastructure war this winter, for which it's gearing up, including with North Korean weapons and Iranian weapons. Point two: they've destroyed Ukraine's ability to export through the Black Sea except for a trickle, which was the fundamental business model of a commodity exporting country. Point three: they have destroyed Ukraine's civil aviation. Ukraine has no civil aviation. Any of you who've traveled, as I have, to Ukraine will notice that you can't fly in the country, which makes travel and business in the country now back to the era of the railroads before there were airplanes. So the the Russian economic warfare against Ukraine is devastating. And as time passes, this is going to have deep effects on the ability of Ukraine's economy and society to hold together, which will play out politically. So point one: economic warfare is the true center of gravity in the war. 28:35 Philip Zelikow: Two, the Russian assets are the key strategy to change the outcome. The Russian assets are at least $280 billion. Now, even in our debased day and age, that's a lot of money. It's a lot of money in the context of the Ukrainian economy. Even using very conservative multipliers of how much private investment the public investment can unlock, let's say one to one, the impact of this money on the whole future prospects of Ukraine and its staying power are decisive. Otherwise, they're relying on US and European taxpayers whose readiness you can gauge. So this is potentially the decisive fulcrum of the economic warfare and Ukraine's prospects in the war. 29:25 Philip Zelikow: So, third point, why has this been so hard? First reason was there was a knee jerk neuralgia on the part of bankers and financiers to the actual confiscation of Russian assets in the foreign exchange holdings, with much talk of losing confidence in the dollar in the euro. On analysis, these worries quickly fall away, which is one reason that I worked with my colleagues, Larry Summers, the former Treasury secretary, and Bob Zoellick, the former president of the World Bank, who do know something about international finance to debunk those concerns. And I'd be glad to go into more detail about why the concerns about the dollar or the euro turn out to be overblown when they're analyzed. 30:10 Philip Zelikow: The other concern was how do we do this legally? There's been a ton of legal confusion about this. This bill will help dispel that legal confusion. 30:30 Philip Zelikow: What about sovereign immunity? Sovereign immunity is a doctrine that only exists in the context of national courts trying to usurp sovereign authority in a situation where it's sovereign on sovereign, whereas in this bill, there would be an act of state that goes after Russian sovereign property. There is no such thing as immunity; there is no doctrine of sovereign immunity. Ordinarily, under international law, if one sovereign takes another sovereign's property, then the loser is entitled to compensation for that nationalization or expropriation. So why isn't Russia entitled for that compensation in this case? Because it's a lawful state countermeasure. Countermeasures are different from sanctions. And countermeasures -- and this is a well recognized body of law -- you are allowed to do things that would ordinarily violate your sovereign obligations to a fellow sovereign, because that sovereign has committed such extreme outlaw behavior, that the countermeasure is a lawful recourse. And that is exactly the extreme case we have here. There is a well codified body of law on this, and Russia has hit every one of the marks for a set of lawful state countermeasures that deprives them of any right to compensation when states take their money and then use it, putting it in escrow to compensate the victims of Russia's aggression. 37:35 Rebeccah Heinrichs: The United States directly benefits from Ukraine's battlefield successes as Russia remains a top tier adversary of the United States. These are the weapons that Americans made and designed specifically to go after the kinds of things that the Ukrainians are destroying in the Russian military. 39:55 Rep. Michael McCaul (R-TX): The EU has a plan just to tax frozen assets and send those proceeds to Ukraine. Our Treasury Secretary, Miss Yellen recently claimed that transferring sovereign assets to Ukraine was not legal. Do you agree with that, and if not, what is your opinion from a legal standpoint? Philip Zelikow: I think Secretary Yellen has now revised her view of this matter, having had a chance to be informed by some of the legal work that's been done since she first made that impromptu remark. There is the legal authority both under domestic law and international law, and the bill this committee is considering would reaffirm, consolidate, and elaborate that authority. So legally, this can be done. 40:55 Philip Zelikow: What the EU came up with in May was the idea -- they were encountering a lot of resistance to actually taking the Russian money, so they said, Well, can we come up with something, since a lot of these as the securities have now matured and are in cash and Euroclear, mainly -- the clearing house in Brussels -- is now managing the cash on behalf of Russia, because Russia is no longer able to manage it. So can we do something with the interest? And by the way, the EU couldn't get that through in June. Ursula von der Leyen couldn't get that adopted over, principally, French and German opposition at the time. So they're talking about just taking this interest. As a legal matter, if you have the legal right to take the interest, you have the legal right to take the principle. This was a cosmetic idea trying to overcome the opposition they had there. It's kind of a situation where, as one of my colleagues in this effort, Larry Tribe, has put it as well, instead of crossing the Rubicon, they're kind of wading in. From a legal point of view, it's actually clearer to do the transfer for Ukraine than to try to expropriate the money using tax authorities, which makes it look like you're expropriating it for your country, rather than for the benefit of the victims, which is a much cleaner, legal way to do it. So they ended up, for political reasons, with a half measure that takes only a tiny fraction of what they should and does so in ways that are actually legally awkward. I understand why they are where they are, but as they process this, I think they're just going to have to step up to going ahead and crossing the Rubicon. 50:20 Philip Zelikow: The whole argument that I made in an article with Summers and Zoellick in Foreign Affairs is that actually, this is a strategy for victory. You put this enormous war chest and the multiplier of private investment into play. And what you can envision is a whole new European recovery program, anchored on the rebuilding of Ukraine that not only saves Ukraine, revitalizes it, but links it to the EU accession process, to the enlargement of the European Union. In other words, to the victory of the whole cause of freedom, in a way almost regardless of where the final battle line ends up being in Ukraine, Ukraine will be growing with bright prospects, part of a Europe with brighter prospects, because of its alignment with the free world. 51:25 Philip Zelikow: When people worry about the significance of this in foreign exchange, I ask them to just remember two numbers 93 and three. If you look at the percentage of foreign exchange holdings held in the world today, 60% United States, 23% Euro, 6% yen, 4% Sterling: that's 93. The percentage of foreign exchange holdings in Chinese renminbi: three. And the Chinese were really encouraged that it's gone up from 2.5 to 3 in recent years. So when you look at 93 to three, that's what you get when we work with our allies in a concerted economic strategy. We can move on the Russian assets, and there's really no choice except to stick with the currencies of the free world because they're still the only basis for being a participant in the world economy. 54:20 Rep. Bill Huizenga (R-MI): Who actually has the authority to take possession of it? Because as you point out, if you've got the legal right to the interest, you got the legal right to the principal. Who is granted that authority? And then who is granted the authority to distribute that? Philip Zelikow: So the theory is that the national governments can transfer any of the Russian state assets in their jurisdiction into escrow accounts for the benefit of the victims, as a state countermeasure to Russia's aggression. So the way that would work is under the President's IEEPA authority, he could transfer all this -- and there are precedents for this -- into an escrow account held in the States and then an international escrow account, with this limited purpose of compensating the victims of Russian aggression, then you need to create an international mechanism, which the US would participate in creating, to then manage that distribution, which needs to have a proactive urgent speed of relevance. Rep. Bill Huizenga (R-MI): That was what I was afraid of. If it just simply takes one participant to bog the whole thing down, guess what? It's not going to work, in my humble opinion. Philip Zelikow: When they're debating this in the EU, some people say we should have a new EU directive to govern this, but under our Common Foreign and Security Policy, one member like Hungary, for example, could botch that. So if you create something perhaps managed by the G7 Donor Coordination Platform, that is a relatively simple instrument in which the United States could play a part. One thing that you've done in the bill you've drafted, Mr. Chairman and Congresswoman Kaptur, is you're creating mechanisms in which Congress has insight and some oversight into how the United States participates in that process, and what the mechanism does and how the money is spent, which I think is an appropriate role for the Congress. There are precedents for how to do this. The design of this international mechanism I'm discussing is both policy driven, but also has a reactive claim side, but can have some conditionality on reform and the EU accession process. That's a heavy lift. Building that mechanism will be the biggest job since we built the Economic Cooperation Administration to run Marshall Plan aid 70 years ago. That serious work has not really begun, because we're just working on the preliminary phase of mobilizing and using this money. 58:25 Rep. Ted Lieu (D-CA): You believe the Administration, even without this bill, has authority right now to transfer the frozen Russian assets to Ukraine. Philip Zelikow: Yes, it does. It has it under the existing IEEPA authorities that the President has already invoked. The Renew Democracy Initiative has put out a really extensive legal brief that goes into great detail about this. I think actually the administration's lawyers are coming around to the view that yes, they do have the authority under existing law. What the REPO Act does is, one, it reaffirms that, but two, it makes Congress a partner in this with regulation and oversight that's an appropriate Congressional role. So by both reaffirming the authority and getting Congress to join the executive and doing this together I think it makes it a truly national effort with an appropriate Congressional part. 59:20 Rep. Ted Lieu (D-CA): How would you respond to critics who say this would make it harder for other folks in the future to want to invest in the United States? Philip Zelikow: You can look at the numbers. After we froze Russian assets, everybody understood the political risks that might be involved with putting their money into dollar holdings. The Chinese called in all their bankers and asked them, "Do we have any other options?" That happened last year. You can just simply track what's happened in the international financial markets and see how folks have now priced in that political risk. But the result is still very strong demand and interest in the dollar. But here again, to come back to Congressman [Gregory] Meeks point, by working with the Euro and the yen and Sterling, we give them no place to go. If they want to participate in the world economy, then they're just going to have to invest in assets like that. 1:00:30 Rebeccah Heinrichs: The other thing that's very interesting and good in the REPO bill that is different is this provision, Section 103, that would prohibit the release of blocked Russian sovereign assets. I think that's an incredibly important element of this bill. That would remove the temptation for any kind of sweetener for the Russians to have access to these funds and leave Ukraine in a lurch whenever they have to rebuild their society. That's a very important part of the bill. 1:01:10 Rep. Nathaniel Moran (R-TX): Why would it be better to transfer these assets for Ukraine's direct benefit than to use them for leverage in negotiations and ending this conflict at some point? Rebeccah Heinrichs: It comes back down to the fundamental question at the end: who's going to foot the bill for rebuilding Ukrainian society? Somebody's going to have to do it. It should not be the American people primarily. They're footing a pretty significant bill. I think that benefits American industry and benefits our own military, but this particular piece should be carried out by the perpetrators of this act. So I think that it'd be a mistake to hold that out as a sweetener to get the Russians to come to the end or the conclusion. 1:01:55 Rep. Nathaniel Moran (R-TX): Mr. Zelikow, you mentioned earlier in response to one of my colleague's questions that it looks like that under current law under the IEEPA authorities, the president can do this activity now. Do you know why the President is not doing that? And if he chose to do that, could he do it immediately? Or is there any delay in that? Philip Zelikow: They could act immediately. They've delayed a long time, partly, to be very blunt -- because I've been talking to a lot of people about this -- they had very deep interagency disagreements inside the administration over how to proceed and they found that their bandwidth was totally overwhelmed by other Ukrainian-related concerns, and they didn't give this heavy attention until fairly recently. And now that they have given it sustained attention, I think the President has actually settled, at a fundamental level, those interagency disputes and they are now moving forward to try to find a way to make this work. 1:02:50 Philip Zelikow: I think the point you raised a minute ago about whether we want to hold this back as leverage was one factor in the back of the minds of some people. I think as the war has continued on through this year, hopes of a quick settlement of the war have dissipated. I think they realize that this is going to be a long war. That sobering realization has kind of sunk in. Also, from a legal point of view, if you want to, you could credit the Russians in any peace negotiation. You can basically say this is a credit against your liability for the for rebuilding Ukraine. 1:04:55 Rep. Madeleine Dean (D-PA): As a member of the Foreign Affairs Committee, we have been to many European nations. To a nation, they say the United States is the indispensable partner here, and they say that with all humility and not blowing smoke. We visited the Hague and sat with lead prosecutor Khan, and everyone is talking about waiting us out. Not just waiting out Congress's support, but waiting out the outcome of the next election. They asked us specifically about that. Mr. Putin is clearly waiting for the outcome of the next election in hopes that it will not be the reelection of Joe Biden, who I'm really proud is in Israel right now. Timing. How does this work? You already said it's going to be into 2025. How do we use this leverage, this economic warfare as the center of gravity in this conflict, to bring the timing tighter to a successful conclusion for Ukraine? Philip Zelikow: So that's a great question. And this is why action on this issue is so urgent now, because the operational timeline to stand this up on a massive multi 100 billion dollar scale is if we move on this in the next couple of months and mobilize the money. We could get an enormous operation up and running with a relatively secure source of funding by next year. If we get that up and running by the middle of next year, we then insulate ourselves, to some extent, against the kind of electoral risk to which you gently alluded. 1:07:55 Rep. Thomas Kean Jr. (R-NJ): If the United States did transfer Russian sovereign assets to Ukraine, how could Ukraine best use these in the near term? Philip Zelikow: In the near term, what they would do, I think, is begin undertaking a comprehensive program to shore up their infrastructure, withstand the coming Russian campaigns to further damage that and begin to rebuild the basic transportation infrastructure and other things that can then begin to unlock a really bright future for the rest of the Ukrainian economy. There are things that can be done then to move Ukrainian industry into new sectors. I think the Ukrainian goal is not just to restore what they had five years ago, but actually to use this as a way to build back better, to imagine a brighter future in partnership with Europe. And then if the money is managed well, this gives leverage to encourage the Ukrainian reform process as part of the EU accession. Putin's whole effort here is, "if I can't conquer Ukraine, I will wreck it and make it ungovernable," and we'll show decisively that that objective cannot be achieved. 1:10:35 Rebeccah Heinrichs: If I may, sir, another principle that has been misunderstood throughout this conflict is this notion of escalation. Escalation is not bad. It's only bad if it's the adversary who's escalating to prevail. We want Ukraine to escalate to win, to convince the Russians to end the war. If you do not permit the Ukrainians to escalate, then you only have a long protracted war of attrition that none of us can afford. 1:12:05 Philip Zelikow: Whenever you do a large thing in international affairs, there are going to be unintended consequences from that, and rather than be dismissive about that concern, I'll say if you embark on this, then people will be tempted to try to use these sorts of precedents against us. They'll be limited in their ability to do that because of the fundamental places where money is held in the world economy. A lot of people don't do business with the United States because they love us; they do business with us because they think it's necessary. If they could expropriate our property with no penalty, they would. Venezuela tried that. Most of the world doesn't want to follow Venezuela's example. So yes, there are some potential unintended consequences of people trying to use this precedent. But one reason we've tried to set this under international law is to use the standards of international law to govern this countermeasure. International law allows these countermeasures, but it says you can only do this if the target country's outlaw behavior is extreme, and there's a standard for that. It turns out Russia totally meets that standard. This is the most extreme case of international aggression since the Second World War, bigger than Korea, bigger than Kuwait. But by setting that kind of standard, it makes that slippery slope a little less slippery. 1:14:25 Rep. Greg Stanton (D-AZ): There are some concerns that if we were to transfer these assets, use it for the benefit Ukraine, would there be an impact on the US dollar? Just get your thoughts on that? Philip Zelikow: Yeah, that's why we got in some of the best people we could on international plans, just to do the analysis on that. 93% of the foreign exchange holdings are held in G7 countries and only 3% in renminbi. Running to the renminbi because they're worried about the dollar is something people would do if they wanted to do it already. They've already priced in the political risk of dollar holdings after they've seen what we've done. And you can see their asset allocations. Now, the dollar is involved in 88% of all foreign commercial transactions on one side of the transaction or another. So it's hard to run away from it, especially if the Euro, Yen, and Sterling are in there with you. There's really kind of no place to go if you want to participate in the international economy. Working with Larry Summers, the former Treasury Secretary, Robert Zoellick, with Brad Setser, who studies international finance, we ran some numbers about worst case scenarios and so on, and we think that concern, which sounds good as a soundbite, it turns out on analysis, it fades away. 1:16:10 Philip Zelikow: The US only holds a fraction of the relevant Russian money because the Russians tried to get their money out of our jurisdiction. But when you go to Europe and ask them what's holding them up, they all say "We're waiting for the American lead." So even though we may only hold a fraction of the money, we hold a lot more than a fraction of the relevant clout, and we need to go together, exactly as you imply. September 28, 2023 House Committee on Foreign Affairs Witnesses: Victoria Nuland, Undersecretary of State for Political Affairs, United States Department of State Christopher P. Maier, Assistant Secretary of Defense for Special Operations and Low Intensity Conflict, United States Department of Defense Caroline Krass, General Counsel, United States Department of Defense Richard C. Visek, Acting Legal Adviser, United States Department of State Clips 33:00 Victoria Nuland: First with regard to the Taliban, we've been very clear we're going to judge the Taliban by their actions. It is our assessment that the Taliban have partially adhered to their counterterrorism commitments. We've seen them disrupt ISIS-K, for example. But there's obviously plenty more to to do to ensure that Afghanistan doesn't become a safe haven, or return to safe haven, or persist as a safe haven. That said, I would note that the director of the National Counterterrorism Center Christy Abizaid recently said publicly that al Qaeda is at its historic nadir in Afghanistan, and its revival is unlikely. 34:20 Victoria Nuland: Iran is obviously a state sponsor of terrorism; it is the leading state sponsor of terrorism in the world. Music by Editing Production Assistance
2023-11-05
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CD283: A Federal Reserve Digital Dollar (CBDC)

The House Financial Services Committee has been investigating the possibility of the Federal Reserve creating a Central Bank Digital Currency. In this episode, hear experts unpack the nuances and implications of this idea during three hearings, and discover how you can play a part in shaping the future of American currency. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Operation Choke Point Frank Keating. November 7, 2018. The Hill. House Committee on Oversight and Government Reform Staff. May 29, 2014. U.S. House of Representatives. Digital Asset Glass-Steagall James Rickards. August 27, 2012. U.S. News & World Report. Audio Sources September 14, 2023 Committee on Financial Services, Subcommittee on Digital Assets, Financial Technology and Inclusion Witnesses: Yuval Rooz, Co-Founder and Chief Executive Officer, Digital Asset Paige Paridon, Senior Vice President and Senior Associate General Counsel, Bank Policy Institute Christina Parajon Skinner, Assistant Professor, The Wharton School of the University of Pennsylvania Dr. Norbert Michel, Vice President and Director, Center for Monetary and Financial Alternatives, Cato Institute Raúl Carrillo, Academic Fellow, Lecturer in Law, Columbia Law School Clips 27:35 Rep. French Hill (R-AK): Look, the Constitution is clear. Only Congress has the authority to coin money and regulate the value of such money. And we've heard the same from Fed officials, right before this committee, and most recently from Vice Chair for Supervision, Michael Barr, who last week told an audience in Philadelphia and I quote, "The Federal Reserve would only proceed with the issuance of a CBDC with clear support from the executive branch and authorizing legislation from Congress." The Biden Department of Justice agrees, saying, quote, "there would be substantial legal risks to issuing a CBDC without such legislation." 32:05 Rep. Stephen Lynch (D-MA): CBDC is just one type of publicly issued digital dollar and would be issued, backed, and regulated by the Federal Reserve and have the full faith and backing of the US government. This could serve as an alternative to existing forms of payments and have a benefit, including instant payment settlement, provide a medium for cross border transactions, and foster greater financial inclusion. More than 130 countries have begun to explore their own government backed digital currencies. China, Russia, Saudi Arabia and India have already commenced pilot programs, and a digital Euro pilot could be launched as early as 2028. Meanwhile, the US remains far behind amid increasing and blatant information about features of digital currency. While concerns about data privacy and government surveillance are real, especially in countries that do not respect human rights and privacy, a CBDC does not have to be designed that way. We could employ an architecture that would protect personal data while including anti-money laundering and terrorist financing features. 33:15 Rep. Stephen Lynch (D-MA): It is counterintuitive that my colleagues should be raising concerns about data privacy while thousands of private companies, domestic and foreign, are surveilling, aggregating, and selling consumer data each and every day. 33:45 Rep. Stephen Lynch (D-MA): I'm announcing and inviting my colleagues to join the Congressional Digital Dollar Caucus. This forum will educate members on critical issues relating to the development, design, and potential implementation of a government issued digital dollar. I plan to invite innovators, technologists, academics, and other experts to share their findings and development. I hope my colleagues will join me in this exploration. 34:15 Rep. Stephen Lynch (D-MA): The use of anonymous cash has plummeted and more of our transactions are occurring online and under surveillance, tracked and aggregated by financial services companies. Indeed China has turned that fact into a tool of full spectrum surveillance of its citizens. This is why I've introduced the Ecash Act. This bill directs the Treasury to design and pilot a digital version of cash and would complement the Fed-issued CBDC. It would allow individuals to make instant peer to peer payments with no consumer data or transaction tracking and without the use of a bank account. 36:10 Rep. Tom Emmer (R-MN): The need to protect Americans' right to financial product privacy is at an all time high. That's why I introduced the CBDC Anti-Surveillance State Act with over 50 of my colleagues. This bill prevents unelected bureaucrats from creating a tool for financial surveillance if not open, permissionless, and private, like cash, a CBDC is nothing more than a CCP-style surveillance tool that will oppress the American way of life and we're not going to allow that to happen. 38:20 Dr. Norbert Michel: In my testimony, I argue that the United States should not launch a Central Bank Digital Currency, a CBDC. Advocates for a CBDC tout many potential benefits, but there's nothing unique about the technology that would provide those supposed benefits. 39:00 Dr. Norbert Michel: A CBDC in any form would be a direct liability of the central government, a digital tether to its citizens such that it would radically alter the existing public-private relationship that already exists in our monetary arrangement. 39:25 Dr. Norbert Michel: First, issuing a CBDC would not help preserve the status of the United States dollar, it would likely damage it. Proponents argue that because China has launched a CBDC, the United States must keep up by launching its own. Others make the narrower claim that the US must launch a CBDC to keep up with broader technological changes in the payment sector. But anyone who chooses to do so can transact digitally in U.S. dollars right now. The CBDC does not take us from a world with zero or a few digital transactions to one filled with digital transactions. Moreover, the dollar's renowned status is owed to the strength of the American economy and its legal protections for private citizens relative to many other countries. Unlike in many other places, Americans do not have to live in constant fear that the government will take their money. However, if the US creates a CBDC, anyone who wants to use the dollar would lose a layer of protection from that type of government abuse. 40:30 Dr. Norbert Michel: The second myth is that a CBDC would expand financial inclusion by providing a new source of financial services for America's unbanked and underbanked populations. Again, though, this is not a technological problem. In other words, the CBDC itself does not accomplish this goal. The private sector already enables us to transact digitally, and it has been steadily shrinking the number of Americans without financial services for years. We also know, because the FDIC asked them, that unbanked and underbanked Americans primarily are in that situation because either they don't have enough money to have an account, or they don't want to give their personal information to a bank or the government. And what should be obvious is that a lack of sufficient income is a much broader economic problem than a CBDC or financial service technology. While some proponents argue that a CBDC lowers the cost of providing financial services, that's true only if the government subsidizes those costs or chooses to waive the same level of regulatory scrutiny it requires of private firms. And that level of scrutiny, it turns out is more than just a costly mandate that the government has placed on private firms. It's also the one that causes those unbanked Americans to say they don't trust banks. It's also the same one that requires people to hand over their personal information to private companies, and as a result potentially to the government. If the government removes that mandate for all financial service providers, there would be no cost advantage to a CBDC. 42:05 Dr. Norbert Michel: That brings me to my last myth, the idea that a CBDC could somehow enhance financial privacy. Currently, Americans are forced to hand over personal information to financial institutions. Those institutions are required to track transactions, and the government can access that information without a warrant. The fourth amendment is supposed to protect Americans from the government gaining access to this kind of information, unless they show probable cause and obtain a warrant. But it no longer protects Americans when it comes to financial information. And the only buffer left is that the government must go through the financial institution to obtain that information. Introducing a CBDC would remove this last layer of protection. It would place all financial transactions either in a government database or leave them a keystroke away. 44:15 Paige Paridon: We believe that at this point there is little evidence that a CBDC would bring measurable benefits to the US economy or consumers. Furthermore, a CBDC could upend the commercial banking system and create financial instability. 44:30 Paige Paridon: CBDC can take one of two general forms: a wholesale CBDC, which would be used only by financial intermediaries, and a retail CBDC, which could be used by consumers and businesses. To date, most research and attention has been focused on a retail, intermediated, account-based model in which consumer's CBDCs would be held in an account at a bank or another financial intermediary, like an asset held in custody. The CBDC could not be used by the bank to make loans in the way that dollar deposits are used today. Any transfer of $1 deposit from a bank to a CBDC is $1 unavailable for lending to businesses or consumers. By attracting deposits away from banks, a CBDC likely would undermine the commercial banking system in the United States and severely constrict the availability and increase the cost of credit to the economy. 46:30 Paige Paridon: With respect to financial inclusion, a review of the reasons why certain individuals are unbanked makes it clear that a CBDC would be unlikely to meaningfully increase financial inclusion. For example, FDIC data reveals that many respondents are unbanked because of privacy concerns, and intermediated CBDC is unlikely to mitigate those concerns, given that it would presumably come with the same know-your-customer requirements that currently apply to banks. 54:35 Christina Parajon Skinner: So privacy rights are the clearest place to start. Today, individuals can enjoy comprehensive privacy in their payments transactions by using cash. Now, although most central banks have suggested that CBDC is not going to replace cash, that near-term promise can't be guaranteed over the longer term, and the insinuation that CBDC is necessary or inevitable seems motivated by a view that cash will eventually become obsolete. But because central banks don't have the technology presently to offer cash-like privacy, a digital currency -- unless it's radically redesigned -- will bring with it the ability for the state to monitor or surveil its citizens' payments activity. 55:20 Christina Parajon Skinner: I'd like to focus on the impact of a CBDC on the Federal Reserve. Certainly since 2010, the power and authority of the Fed has grown considerably, and Congress's responsibility to oversee the Fed requires it to understand how a CBDC could further empower the central bank but also how it might weaken it. On the one hand, CBDC could result in a larger central bank balance sheet. Issuing CBDC would increase the liability side of the Fed's balance sheet if the total of bank reserves, repos, and cash balances largely remained unchanged. So if the liabilities with CBDC increase, so too much the Fed's assets. The Fed could buy more Treasury securities to match CBDC, but that could possibly invite pressure on the Fed to issue more CBDCs to in turn absorb more government debt. And overall, that dynamic could further erode the limited fiscal discipline that we have remaining. A CBDC could also affect the Fed's independence in the way that it would establish a direct relationship between the central bank and the real economy for the first time in history. One result of that relationship would almost certainly be the further erosion of the line between monetary and fiscal policy. When central banks begin to issue liabilities directly to the people, it will become much more difficult for the central bank to justify their provision of liquidity to banks and the financial system, as opposed to households, especially during a crisis. And effectively this could open the door to political pressure on the Fed to provide liquidity assistance to households during turbulent economic times. But these sorts of household level interventions would radically transform the central bank and its purpose and role within society. 57:40 Christina Parajon Skinner: So it does not inherently improve financial inclusion unless it's paired with accounts for all citizens, which the central bank itself has already recognized as infeasible. 59:15 Raúl Carrillo: Today, I support the call for a digital dollar system, including CBDC, Fed accounts, and Ecash. 1:02:15 Raúl Carrillo: Indeed, the only way to evolve beyond the surveillance status quo is to establish a direct digital dollar interface with consumers where the Fourth Amendment and other protections may actually apply. If we truly care about privacy, we should treat the banking and blockchain industries? appeals to partnership as suspect, based on legal and technological grounds alone. We can build a retail CBDC and Fed account system with superior protections compared to what exists now and superior protections to the systems that are being built around the world currently. 1:02:50 Raúl Carrillo: So today I also advocate for the inclusion of digital cash, as detailed in the Electronic Cash and Hardware Security and Secured Hardware Act, the Ecash Act, re-introduced by Representative Lynch. Today, Ecash devices available on a smart card or a phone card would serve as digital counterparts to cold hard American cash. These devices would not make payments over the internet. Instead, they would store Treasury issued digital dollars on card hardware to enable everyday small dollar transactions for everyday people. These transactions would be subject to the BSA/AML regime, and as a boon to law enforcement, we can set privacy-sensitive security controls and caps on transactions and usage. However, the cards would in no instance be capable of generating data that companies and agencies can abuse. We preserve a place for privacy within public infrastructure. The Ecash Act harkens back to the past to the days when President Lincoln established the banking and cash system that we still use today. And it also harkens to an exciting, inclusive, safe digital future. 1:08:05 Paige Paridon: CBDC, because it would be a direct liability of the central bank, it would be perceived as the ultimate safe asset. So from that perspective, particularly during times of economic stress, it could attract depositors to pull their money out of the banking system to flee or run to a CBDC if there was perceived concern about the banking system or the financial system overall. So every dollar that currently resides in a bank account can be deployed for useful purposes in the economy, primarily through lending. Every dollar that is pulled out from the banking system and put into a CBDC is one less dollar that could be put to good economic use. And that is why we have a fundamental concern with a retail CBDC, given the flight-to-quality risks. 1:09:35 Rep. Maxine Waters (D-CA): 130 countries, representing 98% of the global economy, are now exploring digital versions of their currencies, including the United States. Almost half of these countries are in advanced development pilot or launch stages of their CBDCs. Can you discuss how CBDCs may shape the future global financial landscape? What would it mean for the United States if we instead chose to stay on the sidelines of this race? Raúl Carrillo: Thank you very much for the question, Representative Waters. My opinion is that it is incumbent upon the United States to provide leadership with respect to an inevitable process that is going to occur across the world. It is clear that we're all moving to digital fiat currency. The question is what sort of protections are going to attend digital fiat currency? 1:12:35 Raúl Carrillo: I hear a lot of concern across the political spectrum in this committee about the power of Silicon Valley. And if you do not create an alternative to the corporate systems that collect data, or promise to protect it and then collect it en mass, which is even worse and common in the blockchain industry, then what is going to happen is that Silicon Valley is going to win. And frankly, I don't think anybody here wants that. But in order to preserve the space that we have for public money and not make it a big tech enterprise, we, in fact, have to move forward with digital fiat currency. 1:13:50 Rep. Warren Davidson (R-OH): One of the key characteristics of sound money is that it facilitates permissionless, peer-to-peer transactions like cash. Currently, of the 100+ countries developing a central bank digital currency, none of them are developing a permissionless system. Every one of them is developing a permission system, including the United States Federal Reserve. So when we talk about permissions, we can kind of get something from the Federal Reserve's own report of that. They said in their report that it should be privacy-protected, intermediated, widely transferable, and identity-verified. Mr. Michel, Professor Skinner, in your view, is it possible to be both privacy-protected and identity-verified? Dr. Norbert Michel: No, in my view, it's not. Once the information is in a system, it's in a system and somebody is going to get it and it's going to get out. And I just quickly really want to say I'm very happy to hear everybody here on the panel is pro-Fourth Amendment. The problem, of course, as you know, is that the Bank Secrecy Act, and the anti money laundering regime runs right over the Fourth Amendment. So that's what needs to be fixed. Rep. Warren Davidson (R-OH): It's already a problem in third party hands, but this wouldn't even be in third party hands. But, you know, Professor Skinner, what's your view? Christina Parajon Skinner: My view is no, that that's not possible right now, and central banks have essentially admitted as much. And to the extent such technology is or could be under development, it's extremely immature. And I think the point to emphasize here is that inherently there will be a tradeoff to the extent central banks create CBDC, between identity verification and privacy. And more than likely central banks will always choose identity verification because they will never feel comfortable sacrificing the national security goals that they see as accompanying robust identity verification. 1:24:35 Rep. John Rose (R-TN): Decisions in United States v. Miller and Maryland v. Smith gave us the third party doctrine. Under that doctrine. if you voluntarily provide information to a third party, the Fourth Amendment does not preclude the government from accessing it without a warrant. Dr. Michelle, can you explain how the third party doctrine has impacted Americans' financial privacy? Dr. Norbert Michel: Yes, they practically have none at the moment partly because of this. But I also want to clarify, because of something that was just said on the panel. The Fourth Amendment is the one that amends the Constitution to the United States, which protects American citizens from the government. So this is exactly the issue and it was brought up in the cases in the 70s, when the Bank Secrecy Act was challenged. If the Bank Secrecy Act were not there, the banks and financial institutions that we have would not be required by the government to collect the data that they are, that is a requirement in the Bank Secrecy Act. And everybody can go back and look at those cases, that was always an issue as to whether this was constitutional and in violation of possibly the Fourth Amendment. So between the combination of the Bank Secrecy Act, the Fourth Amendment issues, and the third party doctrine, Americans, although many of them don't realize it, have very little financial privacy at the moment. 1:26:05 Rep. John Rose (R-TN): How would the adoption of a CBDC further erode Americans' reasonable expectation of financial privacy? Dr. Norbert Michel: I believe it would remove the last layer that we have, quite simply, instead of having to go through the financial institution, the government would have that information either in a central database or a keystroke away. 1:31:05 Raúl Carrillo: We envision hardware devices. So those can be cards, similar in size to an existing debit or credit card, or they can be secured SIM cards, or something like it, on a phone that would enable hardware based transactions and for people to make payments as they do today with paper cash for everyday things without fear of government or corporate surveillance, which occurs in tandem when we use digital payments today. 1:32:20 Raúl Carrillo: I would clarify that the point of Ecash is that it does not operate online. It is actually open, permissionless, and private, in the sense that you don't need a blockchain or a banking intermediary. 1:35:45 Rep. Bryan Steil (R-WI): In your testimony you wrote, "any transfer of $1 deposit from a commercial bank or credit union to a CBDC is $1 unavailable for lending to businesses or consumers." Can you expand a little bit on that statement about how an adoption of an intermediated CBDC would impact credit availability and the cost of banking services? Paige Paridon: Sure. Happy to, thank you. So I think there's a misconception generally, that $1 transferred from a deposit account to a CBDC would mean that CBDC would still be able to be used for lending and investment in the economy the way that dollar deposits currently are now. And that is not the case of CBDC, even if intermediated. In other words, even if the services including onboarding and other services that commercial banks currently provide, even if those services were provided by banks with respect to a consumer's CBDC, the fact is the bank would really only hold that CBDC in the same manner it holds an asset in custody. So it would have to essentially keep that CBDC under the proverbial mattress and it would not be able to be redeployed in the form of loans. 1:41:20 Paige Paridon: If it was an intermediated CBDC, banks would essentially hold CBDC as a custodian. That's right, they wouldn't be able to lend out some portion of the CBDC as they do deposits. 1:42:10 Rep. Sean Casten (D-IL): If you had 100%, CBDCs was all the money supply, you'd have no lending, right? So doesn't any proportional increase in the amount of a CBDC in an economy shrink the economy? Paige Paridon: Well, there could be shifts to other forms of ways to fund lending. Banks could borrow in the wholesale markets, they could potentially borrow from the Federal Reserve. So I'm not necessarily sure it's a one-to-one relationship. 1:46:25 Rep. Mike Flood (R-NE): Ms. Skinner, in your testimony, you mentioned how a CBDC could lead to the Federal Reserve's independence being threatened. Can you speak more on that? Christina Parajon Skinner: Yes, certainly. Thank you for the question. So in the first instance, to the extent the Federal Reserve doesn't change the composition of its balance sheet otherwise, issuing a CBDC will increase its liabilities, which means that it has to match that increase in liabilities by purchasing more assets. So the first thing that we would think about when the Fed would purchase more assets would be buying more Treasury securities. That being said, with the potential for the Fed to issue more CBDC, thereby giving it more headroom to buy more Treasury securities, would be likely to put some pressure on the Fed at some point down the line from the Treasury to issue that CBDC to absorb more government debt, which we call monetary finance or monetizing the deficit. Before World War Two, the Fed essentially operated under the thumb of the Treasury so that during wartime and otherwise, the Fed could effectively monetize the deficit. And really today, that's anathema to an independent central bank. There were other things that the Fed could also be pressured to buy to match an increase in CBDC, like corporate bonds. Now our recent experimentation in corporate bonds has put some question around whether this too could politicize a central bank because inevitably if central banks buy corporate bonds, they are picking winners and losers in the economy. Now, the Fed has been pretty neutral in its approach, but there has been a lot of pressure on the central bank to, for example, buy green bonds in order to facilitate a transition to a low carbon economy and certainly other central banks do actively green their corporate bond portfolios. 2:23:05 Dr. Norbert Michel: I believe this is a question of centralization versus decentralization. And if you have a CBDC, you ultimately have one major point of failure. One way of doing this would be to have the Fed have a database. Well, we know the Fed's been hacked. Even if the Fed has multiple databases, it's the Fed being hacked, as opposed to having multiple private companies all across the country. If Capital One, for example, has a hack or a cybersecurity problem, everybody in the country is not immediately at risk, only their customers, and that's a problem for them. 2:25:25 Rep. William Timmons (R-SC): Based on your research, can you explain what, if any, technological advantage a CBDC has over the private sector? Dr. Norbert Michel: None. And this should be this is properly viewed as a government reaction to a private innovation. We can call it Bitcoin or you could just call it distributed ledger technology in general. That's what this is about. This is about the government seeing an innovation that possibly threatens their control over the payment system and it is a movement to come up with something that takes that back and it just so happens that what they're coming up with here is something that goes even further than where we are without the CBDC. 2:26:45 Christina Parajon Skinner: The status of the dollar is undergirded by our commitment to the rule of law, democratic institutions, having a judiciary that enforces property rights, and perhaps most importantly, maintaining the dollar as a stable store of value. So for there, it's important that the Fed maintain its fight against inflation and with the issuance of the CBDC, there will absolutely be a propensity to over-issue, to for example, monetize the deficit and if that were to happen that would undermine the status of the dollar. 2:29:45 Paige Paridon: A so-called flight to quality is something that we fear would be almost inevitable. Were a retail CBDC to be issued by the Federal Reserve, in times particularly of financial stress or instability, a CBDC would be viewed likely as the ultimate safe asset and depositors would likely be incentivized to pull the deposits out of the banking system and put them into CBDCs as a safe asset, which would reduce the availability of deposits available to lend out, and moreover, increase the cost of credit. 2:31:10 Raúl Carrillo: President Lincoln created cash after the Civil War in order to help everybody have day to day transactions throughout our economy. Today we have cutting edge technology in various other sectors in the government, including in the US military where they use stored value cards known as Eagle Cash in order to make offline payments. 2:33:15 Yuval Rooz: If the US government were to decide to issue a retail CBDC, unlike wholesaled CBDC, I think that it is going to be critical for the government to show an evidence that there is no ability for the government to see transactions of citizens. I personally would be against such an act. 2:35:05 Yuval Rooz: If we wanted to have privacy included in the smart contract of the money, it would state that any movement of money would only be visible to the sender of money and the receiver of money for example, and the issuer of money would be blinded. So all that the issuer would see is the overall balance, but would not see any underlying movements of the money, for example. March 8, 2023 House Financial Services Committee Witnesses: Jerome Powell, Chair, Board of Governors of the Federal Reserve System Clips 53:50 Rep. French Hill (R-AK): Turning to a topic that's been a subject here for nearly four years: Central Bank Digital Currencies. Article One of the Constitution, reserves coins and money issuance to the Congress and we've in turn delegated that to the US Treasury, which has since 1912 engaged the Federal Reserve as their fiscal agent. You've testified here many times before that to issue a Central Bank Digital Currency that would be have to be authorized by statute by Congress. Is that still your testimony? Jerome Powell: So that is absolutely the case as it relates to a retail CBDC. There are potential forms of a wholesale CBDC that you would need to look at, it's less clear. But we've always been talking about retail CBDC and that's something we would certainly need Congressional approval for. Rep. French Hill (R-AK): What would be a parameter on something that's not a retail CBDC where you think that could be issued in some form or fashion without Congress's direct statutory authorization? Jerome Powell: It would be, for example, something between banks, so it would look an awful lot like a bank reserve. And you might ask, Well, why would we need it? And that's a really good question, too. But just something that's literally within a wholesale market. Rep. French Hill (R-AK): But that speaks that you might have a blockchain between banks and the Fed using a Central Bank Digital Currency token to settle transactions institutionally inside the US. 1:15:40 Jerome Powell: We did go out for comment in general on a CBDC a year or so ago and I do expect that we'll go out, I can't give you a date, but we'll certainly go out and we engage with the public on an ongoing basis. We're also doing research on policy and also on technology. That's what we're up to. Rep. Stephen Lynch (D-MA): The Boston Fed has a partnership over there with the folks from MIT Media Lab, they're doing a great job, but it says here that the discussions would include technical experimentation. I was just wondering, at what level are you talking about making decisions on architecture for a retail CBDC? Jerome Powell: We're not at the stage of making any real decisions. What we're doing is experimenting, in kind of early stage experimentation. How would this work? Does it work? What's the best technology? What's the most efficient? We're really at an early stage but we're making progress on sort of technological issues. The policy issues are equally important though. You know, we haven't decided that this is something that the financial systems in the country want or need. So that's going to be very important. 1:18:15 Jerome Powell: A CBDC is going to be years in evaluation. 1:18:30 Rep. Stephen Lynch (D-MA): You know, before the greenback, everybody had their own currency. You know, you had rail rail companies, you had coal companies, you had, you know, state banks that were authorized to issue their own currency. But when the greenback came out, all of those various currencies went to zero, because the greenback had the full faith and credit of the United States behind it. I'm worried about a lot of these Stablecoins and other cryptocurrencies. Do they go to zero when we come up with a CBDC that has the full faith and credit of the United States behind it? We've got 1000s of these out there, and you've got people investing millions and millions of dollars, well trillions right now. And I'm just thinking if we had those advantages built into a CBDC? Wouldn't those alternatives go to zero, if they did not have the transparency and the full faith and credit that we enjoy? Jerome Powell: So certainly, unbacked cryptocurrencies that don't have any intrinsic value, but nonetheless, trade for a positive number, I've never understood the valuation of those. Stablecoins, many of them are really drawing on the credibility of the dollar. They're dollar denominated mainly, dollar-based reserves, although we don't know what's in the reserves because there's no regulation. 2:16:05 Jerome Powell: What we say about permissionless blockchains is that they have been vehicles for fraud -- Rep. Warren Davidson (R-OH): 0.24% if you follow your own report on fraud. It's a fraction of what it is with the US dollar. May 26, 2022 House Financial Services Committee Witness: Lael Brainard, Vice Chair of the Board of Governors of the Federal Reserve System Clips 2:08:30 Rep. John Rose (R-TN): Vice Chair Brainard, we saw how dangerous it can be when the government weaponizes the financial system for political purposes under the Obama administration's Operation Choke Point. More recently, the Canadian government instructed banks to freeze accounts linked to the trucker protests over vaccine mandates. Vice Chair Brainard, without appropriate safeguards, would a CBDC make it easier for the federal government to block individuals it disagrees with from accessing the financial system? Lael Brainard: So I really don't see CBDC as raising questions that are different from deposits and bank accounts, for instance. And the paper that was released in January, in particular, talks about an intermediary model, akin to what we see with commercial bank deposits, where the central bank doesn't have any direct interaction with consumers, doesn't see transactions by consumers, but there are intermediaries and, very importantly, including banks that would be responsible for both identity verification and for keeping that transaction data private. So in that sense, I don't see it it's as really any different than the issues that are raised with commercial bank deposits. June 16, 2021 Committee on Financial Services, Subcommittee on National Security, International Development, and Monetary Policy Witnesses: Eric B. Lorber, Senior Director, Foundation for Defense of Democracies Clips 43:33 Eric Lorber: The number of transactions which are elicit that use Bitcoin or blockchain technology is actually fairly low percentage wise it's in I believe, below 1% or somewhere around there. So it's fairly small. Music by Editing Production Assistance
2023-10-23
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CD282: Chaos Fires McCarthy

For the first time in U.S. history, the Speaker of the House of Representatives has been fired from the job mid-term. This episode is a play by play of the drama that lead up to this historic event, including the passing of a temporary government funding law which triggered agents of chaos to give Kevin McCarthy the boot. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Government Shutdowns Clinton T. Brass et al. Updated December 10, 2018. Congressional Research Service. Christopher Hickey. September 29, 2023. CNN. Credit Rating Downgrade Elliot Smith. September 27, 2023. CNBC. Elliot Smith. August 2, 2023. CNBC. Funding Process Congressional Research Service. September 11, 2023. Executive Office of the President, Office of Management and Budget. The Continuing Resolution [Jen?s Highlighted Version.] Wikipedia contributors. Retrieved October 8, 2023. Wikipedia, The Free Encyclopedia. The Ousting of Kevin McCarthy S. Dev. October 4, 2023. CBS News. Mini Racker. October 3, 2023. TIME. Audio Sources October 3, 2023 September 30, 2023 C-SPAN Clips Rep. Kevin McCarthy (R-CA): We will put a clean funding stop gap on the floor to keep government open for 45 days for the House and Senate to get their work done. We will also, knowing what had transpired through the summer -- the disasters in Florida, the horrendous fire in Hawaii and also disasters in California and Vermont -- we will put the supplemental portion that the President asked for in disaster thereto keeping the government open while we continue to do our work. September 30, 2023 Clips Rep. Kay Granger (R-TX): Today, the most important priority is keeping government open. Rep. Mike Lawler (R-NY): To shut the government down would be disastrous for the American people, our military, and our economy. The time has come for everyone to put the American people above all interests and continue to do our work as responsible, reasonable, and serious legislators. Rep. Mariannette Miller-Meeks (R-IA): I cannot justify shutting down our entire government over obscure policy decisions. September 30, 2023 Clips Sen. Mitch McConnell (R-KY): The alternative to our action today -- an entirely avoidable government shutdown -- would not just pause our progress on these important priorities, it would actually set them back. September 29, 2023 Clips Rep. Jim McGovern (D-MA): This bill, that was just dropped on us a few hours ago, really is a piece of garbage, and that is putting it nicely. Rep. Tim Burchett (R-TN): We need to make some serious cuts to our bloated government in areas where we don?t need it. We have way too many bureaucrats. Rep. Tim Burchett (R-TN): As I have stated many times with these continuing resolutions, they tell us to pass a continuing resolution so we don?t have to pass another continuing resolution. Well, that line of thinking is like telling a crackhead that I am going to give you more crack to get you off of crack. The truth is we are just addicted to money, and now we are addicted to our great grandchildren?s money. September 28, 2023 Clips Sen. Jerry Moran (R-KS): I oppose a shutdown of government, in part because a shutdown would make the crisis that we face at our border even worse. September 27, 2023 Clips Rep. Lauren Boebert (R-CO): We don?t want continuing resolutions or omnibus bills. We want to go through the funding of the Federal Government bill by bill, sit down, and work with our colleagues on the other side of the aisle. Rep. Matt Gaetz (R-FL): Enough is enough. I am putting my countrymen first. I don?t think we should send another nickel to Ukraine. September 27, 2023 Clips Sen. James Lankford (R-OK): We have got to deal with the issue of government shutdowns. They hurt us more than help us. September 26, 2023 Clips Rep. Chip Roy (R-TX): It will be up to Democrats to make a choice. Will they shut down this open border or will they shut down the government of the United States. House Speaker Kevin McCarthy on CNN September 21, 2023 Clips Rep. Kevin McCarthy (R-CA): This is a whole new concept of individuals that just want to burn the whole place down, but it doesn't work. September 21, 2023 Clips Rep. Jim McGovern (D-MA): Madam Speaker, this majority is a failure. The clowns are running the circus. The day Speaker MCCARTHY handed his gavel over to the clown show, this was the inevitable outcome. Rep. Jim McGovern (D-MA): The Republican majority in this House is a joke. They wasted weeks talking about gas stoves, weeks arguing about book bans, weeks telling kids what soccer team they can play on, and now we are on the eve of a shutdown and they are doing nothing to stop it. Rep. Tom Cole (R-OK): Shutting down the government is bad for the American people. It is an abdication of our responsibility. It is something we should not do September 20, 2023 Clips Rep. Tracey Mann (R-KS): Let?s secure the border. Let?s decrease our country?s dependence on Communist China. Let?s commit to reigning in government spending. September 19, 2023 News 12 Westchester Clips Rep. Michael Lawler (R-NY): This is stupidity, the idea we are going to shut the government down when we don?t control the Senate, we don?t control the White House. Rep. Michael Lawler (R-NY): If the clown show of colleagues that refuse to actually govern does not want to pass a CR, I will do everything we need to do to make sure a CR passes. The bottom line here is this: we?re not shutting the government down. September 19, 2023 Clips Rep. Tom Cole (R-OK): It is simply an inappropriate tool in the toolbox, in my opinion. I have seen both sides use it. My side, sadly, has used it more. I hope we don?t do it this time. September 19, 2023 PBS NewsHour Clips Rep. Ralph Norman (R-SC): A shutdown is not the best thing in the world, but continued path toward bankruptcy is not an option either, for me. September 18, 2023 Clips Rep. Matt Gaetz (R-FL): Mr. Speaker, I?m not voting for a Continuing Resolution. I?m not voting to continue the failure, and the waste, and the corruption, and the election interference. Rep. Matt Gaetz (R-FL): It is only a review of single-subject spending bills that will save this country and allow us to tweeze through these programs and force these agencies to stand up and defend their budget. September 13, 2023 Clips Rep. Ben Cline (R-VA): We should make border security a condition of any continuing resolution when the fiscal year ends on September 30. September 12, 2023 Clips Rep. Matt Gaetz (R-FL): No continuing resolutions; individual spending bills or bust. Rep. Matt Gaetz (R-FL): Individual, single-subject spending bills that would allow us to have specific review, programmatic analysis, and that would allow us to zero out the salaries of the bureaucrats who have broken bad, targeted President Trump, or cut sweetheart deals for Hunter Biden. Rep. George Santos (R-NY): A shutdown would only hurt the very people who are putting their lives at risk for all of us. YouTube Executive Producer Recommended Episodes Music by Editing Production Assistance Cover Art Designed by Clare Kuntz Balcer with images from and
2023-10-09
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CD281: Private Policing of the Organ Transplant Network

The system for coordinating organ donations and transplants in the United States is broken, according to experts who have testified over the course of many years to Congress. In this episode, hear their testimony about what is wrong with the current system and then we?ll examine the bill that aims to fix the problems. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources August 3, 2022. Senate Finance Committee. Lenny Bernstein and Todd C. Frankel. August 3, 2022. The Washington Post. February 10, 2020. Senate Finance Committee. The Bill Audio Sources July 20, 2023 Senate Committee on Finance, Subcommittee on Health Care Witnesses: LaQuayia Goldring, Patient Molly J. McCarthy, Vice Chair & Region 6 Patient Affairs Committee Representative, Organ Procurement and Transplantation Network (OPTN) Matthew Wadsworth, President and CEO, Life Connection of Ohio Raymond J. Lynch, MD, MS, FACS, Professor of Surgery and Director of Transplantation Quality and Outcomes, Penn State Health Milton S. Hershey Medical Center Donna R. Cryer, JD, Founder and CEO, Global Liver Institute Clips 30:40 Sen. Ron Wyden (D-OR): HRSA, the Health Resources Agency, is on track to begin the contract process this fall and we're just going to be working here to complement their effort. 36:30 Sen. Chuck Grassley (R-IA): In 2005, I started the investigation of the deadly failures of UNOS, the monopoly tasked with managing the US organ donation system. Since then, more than 200,000 patients have needlessly died on the organ waiting list. There's a reason that I call UNOS the fox guarding the hen house. For nearly two decades, UNOS has concealed serious problems [at] the nation's organ procurement organizations, known as OPOs, instead of working to uncover and correct the corruption. This human tragedy is even more horrific because many of these deaths were preventable. They were the result of [a] corrupt, unaccountable monopoly that operates more like a cartel than a public servant. 44:45 LaQuayia Goldring: As a toddler, at the age of three, I was diagnosed with a rare kidney cancer that took the function of my left kidney. And when I was 17, I went back into complete renal failure and I received a first kidney transplant at that time. Unfortunately, in 2015, I went back into kidney failure. And at that time, I wasn't ready for another transplant, but I didn't have a choice but to go back on dialysis. I've been waiting nine agonizing years for a transplant, dependent upon a dialysis machine five days a week, just to be able to live. I was told that I would receive a kidney transplant within three to five years. But yet I am still waiting. I am undergoing monthly surgeries just to be able to get my dialysis access to work so that I can continue to live until I get a transplant. The UNOS waitlist is not like one to 100, where everybody thinks you get a number. I'm never notified on where I stand on the list or when I will get the call. I have to depend on an algorithm to make the decision of what my fate will be. 47:55 LaQuayia Goldring: Just a few weeks ago, a donor family reached out to me to be a directed kidney donor, meaning they chose me specifically for a kidney transplant. But unfortunately, due to the errors in the UNOS technology, I was listed as inactive and this was a clerical error. And all that they told me was this was a clerical error, and they could not figure out why I was inactive. But when it came down to it, I'm actually active on the transplant list. 51:45 Molly McCarthy: The Federal monopoly contractor managing the organ donation system, UNOS, is an unmitigated failure. And its leadership spends more time attacking critics than it does taking steps to fix the system. I've seen this firsthand in my five years as a patient volunteer with the OPTN and three years ago, I stepped into the role of Vice Chair of the Patient Affairs Committee, or PAC. 53:45 Molly McCarthy: Further, I have been called by a board member telling me to stop focusing on system outage and downtime of the UNOS tech system. He told me that having downtime wasn't a big deal at all, "the donors are dead anyway." That comment speaks volumes to me about the lack of empathy and respect UNOS has for donor families. 55:00 Molly McCarthy: Congress needs to break up the UNOS monopoly by passing 1668, ensuring that HHS uses its authority to replace UNOS as its contractor. 1:00:15 Matt Wadsworth: Break up the OPTN contract and allow for competition. 1:00:40 Matt Wadsworth: I commend this committee for introducing legislation to finally break up this monopoly and I stand ready to work with you in any way possible to ensure that this bill passes. It's the only way this industry will be able to save more patients' lives. 1:02:10 Dr. Raymond Lynch: I want to differentiate between organ donation, which is the altruistic decision of the donor patient and their family, and organ procurement, which is the clinical care provided by OPO staff. This is what turns the gift of donation into the usable organs for transplant. Organ procurement is a clinical specialty. It's the last medical care that many patients will ever receive. It's reimbursed by the federal government and it's administered by OPOs that are each the only provider in the territory to which they hold federal contracts. Right now patient care delivered by OPOs is some of the least visible in American healthcare. I can't tell you how many patients were evaluated by OPO workers in the US in 2022. I can't tell you how many patients were examined, or how many families were given information about donation, or how many times an OPO worker even showed up to a hospital to do this clinical duty. This lack of information about what OPO providers actually do for patients is a root cause of the variability in rates of organ procurement around the country. My research has shown that what we call OPO performance is a measurable restriction on the supply of organs that results in the unnecessary deaths of patients with organ failure. For example, if the lowest performing OPOs from around the country had just reached the national median over a recent seven year period, there would have been 4957 more organ donors, yielding an estimated 11,707 additional organs for transplant. Because many OPOs operate in a low quality data environment and without appropriate oversight, almost 5,000 patients did not get adequate organ procurement care, and nearly 12,000 other patients did not receive life saving transplants. 1:03:55 Dr. Raymond Lynch: OPO clinical work is currently not visible, it's not benchmarkable, and it's not able to be adequately evaluated, analyzed, or compared. However, much of the hidden data about how OPOs provide care to patients is known to one entity and that entity is UNOS. 1:05:20 Dr. Raymond Lynch: We need a new network of highly skilled specialist organizations, each attending to areas of expertise in the management of the OPTN contract. 1:21:15 Sen. Marsha Blackburn (R-TN): When we look at OPTN, and look at the Securing Organ Procurement Act, the bill would strip the nonprofit requirement for the manager of the Organ Procurement and Transplantation Network, which would open the door for profiting from organ procurement and donation. And to me, this is something that I think many people really fear, especially people that are on a waitlist. And so what I would like for you to do is to address that and address those concerns. And why or why not you think the Act has it right. Dr. Raymond Lynch: Thank you, Senator. I think it's unfortunate that people would be afraid of that and it needs to be changed. Many of the patients that you referenced are waitlisted at for-profit hospitals. For-profit is a part of American healthcare. And I can tell you that our not-for-profit entity doesn't work. And there are for-profit hospitals and for-profit transplant centers that do work. So patients don't need to be afraid of that. They do need to be afraid of the status quo. 1:28:30 Sen. Ben Cardin (D-MD): Ms. Cryer, do you have any views as to why it's much lower percentage chances for a racial minority to be able to have a transplant? Donna Cryer: Yes. And it really does come down to UNOS not doing its job of overseeing the organ procurement organizations. We know from many studies that black and brown communities donate organs in the same percentage they are the population. So it is not a problem of willingness to donate. It is a problem, as Miss Goldring was starting to discuss, about UNOS not ensuring that OPOs go out into the communities, develop relationships far before that horrible decision is needed to [be] made to donate the organs of a family member. 1:56:45 Sen. Elizabeth Warren (D-MA): And among the many reforms the legislation would support HRSA's proposal to break up the OPTN monopoly contract into multiple smaller contracts, which would allow some competition and allow the best vendors in the business to manage different parts of the transplant network operation. That means hiring IT experts to do the IT. It means hiring logistics experts to do logistics, and so on. 1:57:15 Sen. Elizabeth Warren (D-MA): UNOS does not want to lose control, so they're pushing to have the government limit eligibility only to nonprofit vendors that have worked in the past on organ donation, meaning, for instance, that the IT company that is hired to run OPTNs computers systems would have had to have worked on an organ transplant network in the past and be a nonprofit. So Ms. McCarthy, the requirement UNOS wants would seem to make it so that only one organization could apply for the new contract: UNOS. 1:58:35 Sen. Elizabeth Warren (D-MA): Right now, Congress has an opportunity to root out corruption in this system, but if we don't act before the current contract expires we won't have another shot for years. August 3, 2022 Senate Committee on Finance Witnesses: Brian Shepard, CEO, United Network for Organ Sharing (UNOS) Diane Brockmeier, RN, President and CEO, Mid-America Transplant Barry Friedman, RN, Executive Director, AdventHealth Transplant Institute Calvin Henry, Region 3 Patient Affairs Committee Representative, Organ Procurement and Transplantation Network (OPTN) Jayme Locke, M.D., MPH, Director, Division of Transplantation, Heersink School of Medicine, University of Alabama at Birmingham Clips 36:15 Sen. Ron Wyden (D-OR): A 1984 law created the first computerized system to match sick patients with the organs they need. It was named the Organ Procurement and Transplantation Network. Someone needed to manage that system for the whole country, so the government sought to contract an organization to run it. UNOS was the only bidder for that first contract in 1986. The contract has come up for bid seven other times, UNOS has won all seven. Today, the network UNOS overseas is made up of nearly 400 members, including 252 transplant centers, and 57 regional organizations known as Organ Procurement Organizations, or OPOs. Each OPO is a defined geographic service network. Families sitting in a hospital room thinking about donating a loved one's organs does not have a choice of OPOs. 37:40 Sen. Ron Wyden (D-OR): Between 2010 and 2020, more than 1,100 complaints were filed by patients and families, staff, transplant centers, and others. The nature of these complaints runs the gamut. For example, in a number of cases, OPOs had failed to complete critical mandatory tests for matters like blood types, diseases, and infection. Our investigation found one patient died after being transplanted with lungs that a South Carolina OPO marked with the wrong blood type. Similar blood type errors happened elsewhere and patients developed serious illness. Some had to have organs removed after transplant. Another patient was told he would likely die within three years after an OPO in Ohio supplied him with a heart from a donor who had died of a malignant brain tumor. UNOS did not pursue any disciplinary action. In a case from Florida, another patient contracted cancer from transplanted organs and the OPO sat on the evidence for months. In total, our investigation found that between 2008 and 2015, and 249 transplant recipients developed a disease from transplanted organs. More than a quarter of them died. 38:55 Sen. Ron Wyden (D-OR): Delivering organs has been another source of life threatening errors. We found 53 such complaints between 2010 and 2020, as well as evidence that this was just the tip of the iceberg. In some cases, couriers missed a flight. In others, the organs were abandoned at airports. Some organs were never picked up. Many of these failures resulted in organs being discarded. 39:20 Sen. Ron Wyden (D-OR): It's reasonable to assume that many more errors are going unreported. Why? Because filing official complaints with UNOS appears to accomplish zero productive oversight or reform. Organ transplant professionals repeatedly told the Finance Committee that the complaint process was, and I quote here, "a black hole." Complaints went in, UNOS went quiet. In interviews with the Committee UNOS leaders have dragged their feet, dodged tough questions, and shifted responsibility onto others. investigations and disciplinary measures rarely amount to much more than a slap on the wrist. Only one time -- just once -- has UNOS recommended that an OPO lose their certification. 55:05 Diane Brockmeier: We must update the archaic technology system at UNOS. As OPOs, we are required to work with UNOS technology DonorNet every day. DonorNet is outdated, difficult to us,e and often slow to function when every minute counts. Manual entry subjects it to error and OPO and Transplant Center staff are not empowered with the right information when time is critical. I did serve in leadership roles on the OPO Committee from 2017 to 2022. Committee members and industry leaders voiced repeated requests to improve DonorNet. The consistent response was UNOS IT did not have the bandwidth to address this work. The limitations of the UNOS technology are delaying and denying transplants to patients that are dying on the waitlist. Poor technology impacts the disturbingly high kidney discard rate in the United States, where one in four kidneys never make it to a patient for transplantation. Critical time is lost due to the inefficiency of DonorNet, wasting time on offers that will not be accepted. Of course an available organ should be offered to the patient in this sequence. However, far too much of the matching, particularly on older donors and organs that are difficult to place, are left to the individual OPOs and transplant centers to find each other despite, rather than facilitated by, UNOS technology. Mid-America Transplant intentionally identifies surgeons who accept kidneys that have been repeatedly turned down many times. These are life saving options for those patients. In May of 2022, one of these patients was number 18,193 on the list. Relying on DonorNet alone, that kidney would never had been placed and the chance to save a life would have been wasted. 55:20 Diane Brockmeier: UNOS lacks urgency and accountability around identifying and remediating this preventable loss of organs, and they are not required to publicly report adverse events when patients are harmed, organs are lost, or the quality of patient care is deemed unsafe. UNOS does not require clinical training, licensure, or certification standards for OPO staff delivering critical patient care. In this environment, who's looking out for the patient? Who's being held accountable for poor patient care? No OPO has ever actually been decertified, regardless of its performance or its safety record. 57:55 Diane Brockmeier: When an OPO goes out of sequence to place an organ that would otherwise be thrown away, UNOS requires an explanation; however, when organs are recovered and discarded, you must remain silent. 58:05 Diane Brockmeier: We must remove conflicts to ensure effective governance. From 2018 to 2020, I served as a board member for the OPTN. Serving on the board of the OPTN automatically assigns membership to the UNOS board. My board experience revealed that at times UNOS actions are not aligned with its fundamental vision of a life saving transplant for everyone in need. How can you fairly represent the country's interest and a contractor's interest at the same time? 58:35 Diane Brockmeier: Board members are often kept in the dark about critical matters and are marginalized, particularly if they express views that differ from UNOS leadership. Preparatory small group calls are conducted prior to board meetings to explore voting intentions, and if the board member was not aligned with the opinion of UNOS leadership, follow up calls are initiated. Fellow board members report feeling pressured to vote in accordance with UNOS leadership. 59:10 Diane Brockmeier: To protect patients, I urge Congress and the administration to separate the OPTN functions into different contracts so that patients can be served by best-in-class vendors, to immediately separate the boards of the OPTN and OPTN contractors, and to ensure that patients are safeguarded through open data from both the OPTN and OPOs. 1:00:45 Barry Friedman: Approximately 23% of kidneys procured from deceased donors are not used and discarded, resulting in preventable deaths 1:00:55 Barry Friedman: Organ transportation is a process left to federally designated Organ Procurement Organizations, OPOs. Currently, they develop their own relationships with couriers, rely on airlines, charter flights, ground transportation, and federal agencies to facilitate transportation. In many cases, organs must connect from one flight to another, leaving airline personnel responsible for transfers. While anyone can track their Amazon or FedEx package, there is currently no consistent way of tracking these life saving organs. 1:01:45 Barry Friedman: Currently there is no requirement for OPOs to use tracking systems. 1:02:20 Barry Friedman: I also believe there's a conflict of interest related to the management of IT functions by UNOS, as the IT tools they offer transplant centers come with additional costs, despite these being essential for the safety and management of organs. 1:02:35 Barry Friedman: UNOS is not effectively screening organ donors so that they can be quickly directed to transplant programs. UNOS asks centers to voluntarily opt out of certain organs via a filtering process. As a result, OPOs waste valuable time making organ offers to centers that will never accept them. Time wasted equates to prolonged cold ischemic time and organs not placed, resulting in lost organ transplant opportunities. 1:03:10 Barry Friedman: Due to the limited expertise that UNOS has in the placement of organs, it would be best if they were no longer responsible for the development of organ placement practices. The UNOS policy making [process] lacks transparency. Currently OPTN board members concurrently serve as the board members of UNOS, which creates a conflict of interest that contributes to this lack of transparency. UNOS committees are formed in a vacuum. There is no call for nominations and no data shared with the transplant community to explain the rationale behind decisions that create policy change. 1:11:35 Dr. Jayme Locke: The most powerful thing to know about this is that every organ represents a life. We can never forget that. Imagine having a medication you need to live being thrown away simply because someone took too long to get it to you. Your life quite literally in a trash can. Organs are no different. They too have shelf lives and they are measured in hours. Discarded organs and transportation errors may sound abstract, but let me make this negligence real for you. In 2014, I received a kidney that arrived frozen, it was an ice cube you could put in your drink. The intended recipient was sensitized, meaning difficult to match. The only thing we could do was tell the waiting patient that due to the lack of transportation safeguard, the kidney had to be thrown in the trash, the final generous act of a donor in Maryland. In 2017, I received a kidney that arrived in a box that appeared to have tire marks on it. The box was squished and the container inside had been ruptured. We were lucky and were able to salvage the kidney for transplant. But why should luck even play a role? 1:12:45 Dr. Jayme Locke: In one week, I received four kidneys from four different OPOs, each with basic errors that led to the need to throw away those life saving organs. One due to a botched kidney biopsy into the kidneys collecting system, another because of a lower pole artery that had been cut during procurement that could have been fixed if someone involved had assessed the kidney for damage and flushed it before packing, but that didn't happen. Two others arrived to me blue, meaning they hadn't been flushed either. 1:13:15 Dr. Jayme Locke: Opacity at UNOS means that we have no idea how often basic mistakes happen across the country, nor can we have any confidence that anything is being done to redress such errors so they don't keep happening. 1:13:40 Dr. Jayme Locke: Women who have been pregnant, especially multiple times, are harder to match, contributing to both gender and racial disparities in access to transplant. This is a very real example of how a constrained pool of organs and high discards disproportionately hurt women and women of color, who are more likely to have multiple pregnancies. 1:14:25 Dr. Jayme Locke: Number one, immediately separate the OPTN board from any of the boards of any contractors. Number two, bring in real experts to ensure our patients are served by the best of the best in each field, separating out key functions of the OPTN, including policy, technology, and logistics. And number three, ensure that patients are safer by holding all contractors accountable through public adverse event reporting and immediate redressing of problems. 1:22:00 Sen. Chuck Grassley (R-IA): The system doesn't seem to be fair to racial minorities or people living in rural communities. So what are your efforts underway to understand the root causes and help make the system fairer to patients on the waiting list to explain the factors that result in the disparity for minorities in rural populations in the process? And how can the federal government address a problem if we have to be involved in addressing it? Dr. Jayme Locke: One of the most important things that we don't currently do is we don't actually account for disease burden in terms of examining our waiting lists. So we have no way of knowing if we're actually serving the correct people, if the correct people are actually making it to the waiting list. Disease burden is super important because it not only identifies the individuals who are in need of transplantation, but it also speaks to supply. So areas with high rates of end stage kidney disease burden, like the southeastern United States are going to have much lower supply. And those waiting lists predominantly consist of African American or Black individuals. So if you want to make a truly equitable organ system, you have to essentially get more organs to those areas where there are higher disease burdens. I think the other thing is that we have to have more focus on how we approach donor families and make sure that we have cultural competence as a part of our OPOs, and how they approach families to ensure that we're not marginalizing minority families with regard to the organ donation process. 1:30:00 Brian Shepard: The OPTN IT system that UNOS operates has 99.99% uptime. It is a highly reliable system. We are audited annually by HRSA.... Sen. Ben Cardin (D-MD): My information shows it's had 17 days down since I think 1999. That's not correct? Brian Shepard: In 23 years, yes, sir. Sen. Ben Cardin (D-MD): Okay, well, every day there's a loss of life, isn't it? Brian Shepard: That's the total amount of time over the couse of -- Sen. Ben Cardin (D-MD): I hope our national event system isn't down 17 days a year. Brian Shepard: The system has never been down for a day. And to my knowledge, and I have not been at UNOS since 1999, there's been maybe one event that was longer than an hour, and that was three hours. But the total amount of time since 1999 -- Sen. Ben Cardin (D-MD): So you're satisfied with your technology? You think you have the right technology? You're satisfied with your tracking systems now? You think everything is okay? Brian Shepard: We constantly improve our technology. We're subjected to 3 million attempts a day to hack into the patient database and we successfully repelled them all. So we are never satisfied with our technology, but we do maintain 99.99% uptime. We disagree with the USDS analysis of our systems. 1:37:25 Brian Shepard: If you're asking whether UNOS can prevent an OPO from operating or for being an OPO -- Sen. Rob Portman (R-OH: Well not prevent them, but require them to do something .You don't have the ability to require them...? Brian Shepard: The peer review process has significant persuasive authority, but all the payment authority and all the certification and decertification authority live at CMS. 1:39:00 Sen. Rob Portman (R-OH: Do you think there should be tracking of organs in transit? Brian Shepard: I think that's a very beneficial thing. UNOS provides an optional service that a quarter of OPOs use. Many OPOs also use other commercially available trackers to do that. There is not a single requirement to use a particular system. 1:41:55 Sen. Elizabeth Warren (D-MA): Mr. Shepherd, you are the CEO of UNOS. We have documented these problems and you've received more than 1000 complaints in the last decade alone. So tell me, in the 36 years that UNOS has had the contract to run our national organ system, how many times has UNOS declared its OPO Members, any OPO members, not in good standing. Brian Shepard: Two times, Senator. 1:43:20 Sen. Elizabeth Warren (D-MA): How many times has UNOS put an OPO on probation? Brian Shepard: I don't know that number off the top of my head, but it's not a large number. Sen. Elizabeth Warren (D-MA): It's not large, in fact it's three. 1:45:20 Brian Shepard: Approximately 10% of the budget of this contract is taxpayer funded. The rest of that is paid by hospitals when they list patients. 1:49:30 Sen. Todd Young (R-IN): Once an OPO is designated not in good standing, Senator Warren referred to this as toothless. It does seem toothless to me. I'll give you an opportunity, Mr. Shepherd, to disabuse me of that notion and indicate for me what penalties or sanctions are actually placed on an OPO when they are designated not in good standing. Brian Shepard: The statute does not give UNOS any authority to offer sanctions like that. The certification, decertification, payment authorities belong entirely to CMS. UNOS's statute doesn't give us the ability -- Sen. Todd Young (R-IN): So it is toothless in that sense. Brian Shepard: It is designed to be, by regulation and contract, a quality improvement process, in contrast to the oversight process operated by a federal agency. 1:51:15 Sen. Todd Young (R-IN): To what extent is UNOS currently tracking the status of all the organs in transit at any given time? Brian Shepard: UNOS does not coordinate transportation or track organs in transit. We do provide a service that OPOs can use to use GPS trackers. Some of the OPOs use ours and some use other commercially available products. Sen. Todd Young (R-IN): So why is it, and how does UNOS plan to optimize organ delivery if you don't have 100% visibility into where they are at any given time? Brian Shepard: I think that the GPS products that we offer and that other people offer are valuable, they do help in the delivery of kidneys. Only kidneys travel unaccompanied, so this is a kidney issue. But I do think that GPS trackers are valuable and I think that's why you've seen more and more OPOs use them. 1:52:50 Sen. Ron Wyden (D-OR): Mr. Shepherd has said twice, with respect to this whole question of the power to decertify an OPO, that CMS has the power to do it. UNOS also has the power to refer an OPO for decertification under the OPTN final rule. That has been done exactly once. So I just wanted it understood with respect to making sure the committee has got what's really going on with respect to decertifying OPOs. 2:00:15 Dr. Jayme Locke: Obviously people have described that we have about a 25% kidney discard, so one in four. So if you look at numbers last year, these are rough numbers, but that'd be about 8000 kidneys. And really, I think, in some ways, these are kind of a victim of an entrenched and cumbersome allocation algorithms that are very ordinal, you have to go sort of in order, when data clearly have shown that introduction of multiple simultaneous expiring offers would result in more efficient placement of kidneys and this would decrease our cold ischemia time. 2:00:50 Dr. Jayme Locke: So if you take UNOS's organ center, they have a very rigid system, for example, for finding flights and lack either an ability or interest in thinking outside the box. So, for example, if there are no direct flights from California to Birmingham, Alabama, instead of looking for a flight from San Francisco to Atlanta, understanding that a courier could then pick it up in Atlanta and drive it the two hours, they'll instead put on a flight from SFO to Atlanta and allow it to go to cargo hold overnight, where it literally is rotting, if you will, and we're putting extra time on it. Sen. Ron Wyden (D-OR): Just to make sure everybody gets this. You're saying you've seen instances of something being put in cargo hold when it is very likely to rot? Dr. Jayme Locke: That is correct. So if the kidney arrives after 10pm at the Atlanta airport, it goes to cargo hold. We discovered that and made calls to the airlines ourselves and after several calls to the airlines, of course they were mortified, not understanding that that was what was happening and actually had their manager meet our courier and we were able to get the kidney out of cargo hold, but this went on before we figured out what was happening because essentially they fly it in, it sits in cargo hold, it comes out the next morning to catch the next flight. Instead of thinking outside the box: if we just get it to Atlanta, it's drivable to Birmingham. And those hours make a difference. Sen. Ron Wyden (D-OR): That sounds way too logical for what UNOS has been up to. 2:03:05 Sen. Ron Wyden (D-OR): Miss Brockmeier, UNOS has developed this organ tracking system. Do you all use it? I'm curious what you think of it. Diane Brockmeier: Thank you for the question, Senator. We did use and participate in the beta pilot through UNOS and made the decision to not move forward using their product, and have sought a commercial alternative. Sen. Ron Wyden (D-OR): And why was that? Diane Brockmeier: Part of the issues were some service related issues, the lack of the interconnectivity that we wanted to be able to facilitate a more expedited visual tracking of where the organ was. Sen. Ron Wyden (D-OR): Was the tracking technology low quality? Diane Brockmeier: Yes, sir. 2:11:25 Sen. Ron Wyden (D-OR): All right, let's talk for a moment about the boards that are supposed to be overseeing these, because it looks to me like there's a serious conflict of interest here and I'll send this to Ms. Brockmeier, and perhaps you'd like to get to it as well, Mr. Friedman. The Organ Procurement and Transplantation Network, which is the formal title of the organ network that operates under federal contract administered by HHS, and UNOS, which is the contractor that operates the network and controls information about the network, have the same boards of directors, despite efforts by the government to separate them. That means the people who look out for the best interests of UNOS, the multimillion dollar nonprofit, are the same people who look out for the interests of the entire organ transplant network. Sure sounds like a conflict to me. 2:12:55 Diane Brockmeier: I think there should be an independent board. I think the division of the responsibilities of the board and by the inherent way that they're structured, do pose conflicts. It would be like if you had an organization that was a supporting organization, you'd want to hold it accountable for its performance. And the current structure really limits that opportunity. 2:19:50 Dr. Jayme Locke: And if you think about IT, something as simple as having a system where we can more easily put in unacceptable antigens, this was a debate for many years. So for context, we list unacceptable antigens in the system that allows us to better match kidneys so that when someone comes up on the match run, we have a high probability that there'll be a good tissue match. Well, that took forever and we couldn't really get our unacceptable antigens in, so routinely people get offered kidneys that aren't going to be a match, and you have to get through all of those before you can get to the person that they really should go to. Those are simple examples. But if we could really have transparency and accountability around those kinds of things, we could save more lives. 2:23:10 Sen. Ron Wyden (D-OR): Mr. Shepherd told Senator Warren that only 10% of UNOS funds come from taxpayer money and the rest comes from fees paid by transplant centers who add patients to the list. But the fact is, Medicare is the largest payer of the fees, for example, for kidneys. So we're talking about inefficiency, inefficiency that puts patients at risk. And certainly, taxpayer dollars are used to cover some of these practices. May 4, 2021 House Committee on Oversight and Reform, Subcommittee on Economic and Consumer Policy Witnesses: Tonya Ingram, Patient Waiting for a Transplant Dr. Dara Kass, Living Donor and Mother of Transplant Recipient LaQuayia Goldring, Patient Waiting for a Transplant Steve Miller, CEO, Association for Organ Procurement Organizations Joe Ferreira, President, Association for Organ Procurement Organizations Matt Wadsworth, President and CEO, Life Connection of Ohio Dr. Seth Karp, Director, Vanderbilt Transplant Center Donna Cryer, President and CEO, Global Liver Institute Clips 5:15 Tonya Ingram: The Organ Procurement Organization that serves Los Angeles, where I live, is failing according to the federal government. In fact, it's one of the worst in the country. One analysis showed it only recovered 31% of potential organ donors. Audits in previous years found that LA's OPO has misspent taxpayer dollars on retreats to five star hotels and Rose Bowl tickets. The CEO makes more than $900,000. Even still, the LA OPO has not lost its government contract and it has five more years to go. 30:00 Rep. Raja Krishnamoorthi (D-IL): Unusual among Medicare programs, their costs are 100% reimbursed, even costs unrelated to care. So, extravagant executive compensation and luxury perks may be passed off onto the taxpayer. 46:55 Dr. Seth Karp: We have 10 hours to get a liver from the donor to the recipient, and about one hour to sew it in. For heart, we have about six hours. Time matters. 47:55 Dr. Seth Karp: Last year, I had the opportunity to co-write a viewpoint in one of the journals of the American Medical Association with TJ Patel, former Chief Data Scientist of the United States. In that article, we provided evidence that the metrics used to judge the performance of organ procurement organizations are basically useless. Until the recent OPO Final Rule, performance was self-reported, and OPO employees admitted to having gamed the system. When threatened with decertification, one of the OPOs themselves successfully argued that because the performance data were self reported and unaudited, they failed to meet a reasonable standard and the OPO should not be held accountable. In other words for decades, the metrics supposed to measure performance didn't measure performance, and the results have been disastrous, as you have heard. 49:45 Dr. Seth Karp: Whenever I, and quite frankly most everyone else in the field, gives a talk on transplantation, we usually make two points. The first is that organ transplantation is a miracle of modern medicine. The second is the tragedy that there are not enough organs for everyone who needs one. I no longer use the second point, because I don't believe it. Based on my work, I believe that there are enough organs for patients who require hearts, lungs, and probably livers, and we can make a huge improvement in the number of kidneys available. In addition to improving OPO performance, new technologies already exist to dramatically increase the organ supply. We need a structure to drive rapid improvement in our system. 54:00 Joe Ferreira: One common misconception is that OPOs are solely responsible for the entire donation and transplantation system, when, in fact, OPOs are the intermediary entity and their success is highly dependent on collaborations with hospitals and transplant programs. At the start of the donation process, hospitals are responsible for notifying any OPO in a timely manner when a patient is on a ventilator and meets medical criteria to be an organ donor. Additionally, transplant centers must make the decision whether to accept or decline the organs offered by OPOs. 57:55 Matt Wadsworth: As geographic monopolies, OPOs are not subject to any competitive pressure to provide high service. As the only major program in all of health care 100% reimbursed for all costs, we do not face financial pressures to allocate resources intelligently. 1:02:10 Rep. Raja Krishnamoorthi (D-IL): Mr. Ferreira, I'd like to turn to you. You run the OPO called the Nevada Donor Network. I have your OPO's 2019 financial statement filed with the CMS. It appears that your OPO spent roughly $6 million in 2019 on administrative and general expenses. Interestingly, in 2019, I see your OPO spent approximately $146,000 on travel meetings and seminars alone. And your itemization of Administrative and General has an interesting line item for $576,000 for "ANG". It took me a minute but that means you have an "Administrative and General" subcategory in your "Administrative and General" category. Very vague. Now Mr. Ferreira, I was informed by Mr. Wadsworth, a former executive of yours at the Nevada Donor Network, that your OPO has season tickets to the NHL's Las Vegas Golden Knights, isn't that correct? Joe Ferreira: That is correct, Mr. Chairman. Rep. Raja Krishnamoorthi (D-IL): And you also have season tickets to the Las Vegas Raiders too, right? Joe Ferreira: That is correct. Rep. Raja Krishnamoorthi (D-IL): And according to Mr. Wadsworth and others, your OPO took a board retreat to Napa Valley in 2018. Joe Ferreira: That is correct. Rep. Raja Krishnamoorthi (D-IL): And Sonoma in 2019, right? Joe Ferreira: That is correct. Rep. Raja Krishnamoorthi (D-IL): Mr. Ferreira, what you're spending on the Raiders, the Golden Knights, Napa Valley and Sonoma have one thing in common: they have nothing to do with recovering organs. 1:10:30 Dr. Seth Karp: In 2019, there were six heart transplants that were performed using donors after circulatory determination of death. And I don't want to get into the technical aspects of that. But in 2019, that number was six. In 2020, that number was 126. This is a new technology. This is a way that we can increase the number of heart transplants done in United States dramatically. And if we think that there were 500 patients in the United States waiting for a heart in 2020, 500 patients that either died or were delisted because they were too sick, and you think in one year, using a technology, we got another 100 transplants, if we could get another 500 transplants out of that technology, we could almost eliminate deaths on the on the heart transplant waiting list. That technology exists. It exists today. But we don't have a mechanism for getting it out to everybody that could use it and it's going to run itself through the system, it's going to take too much time. 1:24:05 Rep. Andrew Clyde (R-GA): You know, I'm a little disappointed that we're discussing race as a factor in organ transplant. We're all one race in my opinion; color makes no difference to me. We're the human race. And to me, the interjection of race into this discussion is very concerning. Discrimination based on race was outlawed almost 60 years ago through the Civil Rights Act of 1964. Now, I'm not a medical doctor, and I have very little knowledge of medicine. But last year, there was an article that came out in LifeSource and it says, "Does my race and ethnicity matter in organ donation?" And so my question here is for Dr. Karp. In your experience, would you agree that a donor's organs are more likely to be a clinical match for a recipient of the same ethnicity? Could you comment on that? Is that actually a factor, or not? I mean, we're all human beings, we all, you know, have similar bodies. Dr. Seth Karp: Yes. So there definitely are certain HLA types that are more common. That is race-based. So the answer to that question is yes. Rep. Andrew Clyde (R-GA): Okay. All right. And so if you have more of one particular race, more donations of one particular race, then naturally you would have more actual matches of that particular race. Is that correct? Dr. Seth Karp: That would tend to be the case. Rep. Andrew Clyde (R-GA): Okay. All right. All right. Okay, that's just a question that I wanted to clear up here. 1:34:20 Donna Cryer: We'd like to see investments in languages that are spoken by the community. Educational resources should be, as required by law, for those with limited English proficiency. They should be in the languages spoken by the community. They should be hiring diverse staff to have those most crucial conversations with families. The data shows, and certainly experience and common sense shows as well, that having people of color approaching families of color results in more donations. Executive Producer Recommended Sources Music by Editing Production Assistance
2023-09-18
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CD280: Corporate Junk Fees

Do you hate hidden hotel, housing, airline, ticketing, banking, and other corporate fees? Do you want Congress to do something about them? In this episode, learn about the wide range of unreasonable fees being reported to Congress during hearings and examine what proposals could have bipartisan support. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes FTC Authority Ronald Mann. Apr 23, 2021. SCOTUSblog. Supreme Court of the United States. April 22, 2021. Junk Fee Overview Ashish A. Pradhan. May 19, 2023. The National Law Review. Will Kenton. January 24, 2023. Investopedia. Brian Deese et al. October 26, 2022. White House Briefing Room Blog. October 20, 2022. Federal Trade Commission. Brian Canfield et al. July 7, 2021. Institute for Policy Integrity, NYU School of Law. Internet *Federal Communications Commission Healthcare August 8, 2022. Federal Trade Commission. Banking/Payments Lindsey D. Johnson. July 26, 2023. Consumer Bankers Association. July 11, 2023. Consumer Financial Protection Bureau Newsroom. Offices of Consumer Populations and Markets. May 23, 2023. Consumer Financial Protection Bureau. October 26, 2022. Consumer Financial Protection Bureau Newsroom. September 28, 2022. Consumer Financial Protection Bureau Newsroom. August 16, 2022. Pennsylvania Office of Attorney General. August 16, 2022. U.S. District Court for the Eastern District of Pennsylvania. Joe Valenti. March 30, 2022. * Consumer Financial Protection Bureau Blog. January 26, 2022. Consumer Financial Protection Bureau Newsroom. December 7, 2020. Consumer Financial Protection Bureau Newsroom. December 28, 2018. Pennsylvania Office of Attorney General. Housing July 19, 2023. White House Briefing Room. March 14, 2023. National Consumer Law Center. Jennifer Ludden. January 13, 2023. WBUR. Airlines Reid Bramblett. Frommer?s. Suzanne Rowan Kelleher. Mar 7, 2023. Forbes. U.S. Department of Transportation. U.S. Department of Transportation. December 13, 2022. U.S. Department of Transportation. November 2022. Statista. Rosie Spinks. June 1, 2018. Quartz. May 2011. Jones Day. Hotels November 17, 2021. Pennsylvania Office of Attorney General. Christina Jelski. Mar 12, 2021. Travel Weekly. November 28, 2012. The Federal Trade Commission. Ticketing June 20, 2018. U.S. House of Representatives. Anne Bucher. June 13, 2018. Top Class Actions. ?Susan Wang and Rene' Lee v. StubHub, Inc. Case? [No. CGC-18-564120]. The Superior Court of the State of California, County of San Francisco. Cars June 23, 2022. Federal Trade Commission. Laws Bills Audio Sources July 26, 2023 Senate Committee on Banking, Housing, and Urban Affairs, Subcommittee on Financial Institutions and Consumer Protection Witnesses: Attorney General, Commonwealth of Pennsylvania Director of Housing Advocacy, Atlanta Legal Aid Society Manager Director, Patomak Global Partners Clips Michelle Henry: In the consumer finance space, we recently filed a multi-state lawsuit against Mariner Finance, a Wall Street private equity-owned installment lender. Our lawsuit alleges that Mariner charged consumers junk fees for hidden add-on products that consumers either did not know about or did not agree to buy. These hidden add-on products, such as credit insurance and auto clubs, are typically low- or no-value products. Consumers left Mariner believing that they had entered into an agreement to borrow and repay over time a certain amount of money. In reality, because of these hidden junk fees, Mariner added hundreds to thousands of dollars to the total amount a consumer owed. The cost of the junk fees is staggering. For a random sample of loans originated in Pennsylvania in December of 2020, Mariner charged each consumer an average of $1,085 in junk fees for an average of $3,394 in cash borrowed. Michelle Henry: We also had a significant junk fee settlement in 2018 with Wells Fargo. This settlement stemmed from Wells charging its auto finance customers millions in junk fees. Despite evidence that many customers already had the required car insurance, Wells improperly charged more than 2 million accounts for force-placed insurance. To resolve the multi-state action, Wells agreed to pay states $575 million. Michelle Henry: In 2021, we announced the landmark junk fee settlement with Marriott International. For many years, travelers had been misled by the published rates offered by hotels for a night stay, only later to be hit with the mandatory resort fees when they were checking in. Thanks to our settlement, Marriott now has a policy in place to be upfront and transparent in the disclosure of mandatory fees, including resort fees, as part of the total price of a hotel stay, allowing consumers to compare total costs for hotels and find the one that is the best fit for them. Marriott was the first hotel chain to formally commit to the upfront disclosure of resort fees as part of the initial advertised price. We hope others will follow. Michelle Henry: In the end, what we are fighting here for is basic fairness and transparency. When consumers are shopping online or in person, they deserve to understand what a loan, a house, or a vacation will cost and exactly what key terms they're agreeing to. At the same time, all businesses deserve to compete on an even playing field, where the price is the price with no hidden surprise fees. Lindsey Siegel: My name is Lindsay Siegel and I'm the Director of Housing Advocacy at Atlanta Legal Aid, which provides free civil legal services to families with low incomes in the metro Atlanta area. Today, I will focus on the rental housing market and how predatory and hidden rental fees gouge families living in poverty and make their rent even more unaffordable than it already is. Miss Dixon is a single mother who found an online listing for an apartment in the fall of 2020. The advertisement said it rented for $1,400 per month. It did not list any other monthly fees she would be required to pay. She applied and paid $525 through the landlord's online portal, which covered her $50 application fee, a $175 moving fee, and a $300 screening fee, all of which were non-refundable. She was not able to see the lease or the apartment she'd be renting, but she knew if she did not pay sight unseen she would lose the apartment. And when her application was approved a few weeks later, the landlord charged her another $200 approval fee. She finally received and signed a copy of her lease just two days before she was slated to move in. It was 50 pages long and contained to eight different addenda. She had expected to pay her rent and for water. She didn't expect to be responsible for a package locker fee, a trash removal fee, a separate valet trash fee, a pest control fee, a technology package fee, an insurance fee, and a credit reporting fee. When the fees added up, $83 had been tacked on to her monthly rent. And to make matters worse, Miss Dixon's landlord did not accept the rent by cash, check, or money order. When she paid through the landlord's online portal she was charged another $72-per-payment convenience fee. The low income renters Atlanta Legal Aid represents have an extreme power imbalance with their landlords. The high demand for rental housing, especially at the more affordable end of the market, makes some landlords believe they can easily get away with unfair and deceptive lease terms and rental practices. The bait and switch Miss Dixon experienced where the landlord advertise the rent as one price only to raise it much higher with junk fees after she had spent hundreds of dollars up front is a far too common practice of many investor landlords in the Atlanta area. Low income renters like Miss Dixon become trapped. She couldn't afford to walk away from a predatory lease two days before she was supposed to move in, even if she realized it would be unaffordable. Of particular concern are the use of high application fees. They often far exceed the cost of running a report, and most renters have to pay them several times before finding a home to rent. We've heard reports that some institutional landlords even collect application fees after they've found a renter for an available home. Brian Johnson: The focus of the President's initiative has been on applying political pressure to companies to induce them to change their fee disclosure practices. In the process, the White House and supporting agencies have dismissed broad categories of fees as junk without ever providing any consistent definition of the term, which has created uncertainty as to which fees can be assessed by institutions without undue reputational or regulatory risk. Brian Johnson: The CFPB has been the most enthusiastic among regulators in heeding the President's call, indiscriminately attacking a growing list of common financial service fees, no matter that they are lawful and fully disclosed. Brian Johnson: The agency has publicly hectored companies about deposit account fees and used the implied threat of investigation to induce such companies to abandon these legal fees. Further, in addressing other fees, the CFPB appears appears to have violated its own regulations and laws governing how agencies proffer rules by disguising interpretive rules as policy statements in bulletins and issuing circulars that function as legislative rules. In another instance, under the guise of interpretation, the CFPB read a word into a statute to achieve its desired policy outcome. In still another, the agency treats the rulemaking process as a foregone conclusion, acting as though a still proposed rule has already taken effect, signaling that the agency has no interest in considering public comments, establishing an adequate evidentiary basis to support its conclusions, or considering potential changes to improve the rule. These examples demonstrate an abuse of power and the agency's disregard for process and the limits placed on it. Moreover, the CFPB's behavior subverts the authority of Congress to oversee the agency and legislate the legality of fees in our financial marketplace. Simply put, it's not playing by the rules. Lindsey Siegel: So I think the federal government does have a role to play. The CFPB could create best practices, investigate junk fees further -- especially those being charged for tenant screening reports -- could bring enforcement actions against debt collectors that engage in collection practices that violate the Fair Debt Collection Practices Act in their collection of rental debt especially includes collection of junk fees. And certainly, you know, HUD could further study and address the disproportionate impact of these practices on renters and rental applicants of color. Lindsey Siegel: Tenants living in Atlanta have a very hard time finding a rental, finding a home, that's not owned by a corporate landlord at this point. They have bought up many properties in the Atlanta area and they always seem to be working in lockstep so that once one institutional landlord is charging a certain kind of fee then another one tends to charge it as well. Just one example of this is the proliferation of landlords charging for insurance fees, and often tenants will think that these are renters insurance because they're often called renter's insurance. But it's not like traditional renter's insurance that protects the renter and their property if it's destroyed. What it does is protect the landlord and doesn't really provide a benefit to tenants at all. And we've seen that proliferate with investor landlords in particular. Sen. Thom Tillis (R-NC): I can't imagine any reasonable member of Congress not saying, "I want the person to know what their financial obligation is when they sign an instrument, not after they read page 10 in the fine print." Sen. Thom Tillis (R-NC): I'm less caught up in whether or not a trash collection fee is appropriate or not, and more caught up in, does that renter know at the point in time they're signing a lease what they're expected to pay every month? Michelle Henry: We often see things bleed over state lines and boundaries, as you are well aware, and so it's important that we work together to enforce these matters. Sen. Raphael Warnock (D-GA): How often do these kinds of cases cross state lines? And would having federal standards against these types of hidden fees make these cases easier to bring? Michelle Henry: Almost always. And I think that's critical. Where we have been most successful is joining with our fellow states, other attorneys general, partnering with them, and including the CFPB. In December of 2020, the CFPB, with all 50 states and the District of Columbia, filed enforcement action against Nationstar mortgage, again for deceptive practices, for not being transparent when they were servicing borrowers mortgages, and as a result of that joint effort we were able to obtain a settlement of $73 million and brought aid to 40,000 borrowers. Michelle Henry: You know, the reality is a lot of times consumers get misled. So they start, they're looking on the internet, they're trying to do due diligence and look for the best price, whether it's for a hotel, a vacation, and they're in there examining it, and they get led to a certain area of a certain website thinking that's the best price. And they go down this rabbit hole where they have no idea at the end of it that the price they thought they were going to pay for a hotel stay with their family is actually far larger because of fees that they weren't prepared, were not properly advised of, and at that point, they're so far in or they never discover it. So no, I don't think they understand exactly what to be aware of. We're trying to do our best to educate but far more work needs to be done, and I applaud this committee for working on it. Sen. Raphael Warnock (D-GA): If more federal agencies had the authority to address these hidden fees, how would that affect your office's capacity? Michelle Henry: It would help tremendously. Sen. Raphael Warnock (D-GA): Thank you so very much. Michelle Henry: If history is any lesson, we know that they can't be trusted to act in the best interest of consumers on their own. Look, they're in the business of making money for their shareholders and we need robust consumer protection rules and enforcement to ensure that. Sen. Thom Tillis (R-NC): So what we're talking about here is not the "what," it's the "how." And I for one do not think that the regulator's who have demonstrated pushing the boundaries of their authority, giving them more authority is a good idea if we're coming up with a real bipartisan sustainable solution. Sen. Thom Tillis (R-NC): The problem we have here too, when we transfer power out of Congress to another branch, yes, that changes every four years or so. So you may be thrilled with a regulatory regimen that comes out from the CFBP today, but because of the way they behaved, it'd be one of the first things I would work to repeal if the administration changed and withdraw it. Sen. Thom Tillis (R-NC): I'd like to submit for the record a letter from the Consumer Bankers Association on the subject. Sen. Thom Tillis (R-NC): Mr. Johnson, can you talk about the effect of the method that the CFPB is using to go after this and the impact that it can have, the negative implications that has? Is the CFPB's tendency to name and shame business institutions to avoid certain practices or adopt new ones effective regulation? They're not really thinking through the full impact and all the potential unintended consequences. Can you think of any example under this current leadership of the CFPB where they have taken that into consideration? Can you speak a little bit about the efforts and the length the CFPB goes in an effort to avoid judicial review and skirt the APA process? June 8, 2023 Senate Committee on Commerce, Science, and Transportation: Subcommittee on Consumer Protection, Product Safety, and Data Security Witnesses: Chief Executive Officer, National Consumers League Bruce Greenwald Professor of Business, Marketing Division, Columbia Business School George Mason University Foundation Professor of Law, Antonin Scalia School of Law, George Mason University Clips 21:35 Sen. John Hickenlooper (D-CO): Simply put, these are fees that are disclosed to a consumer midway through or at the end of a transaction, or they're fees that serve no tangible purpose for a consumer, like a processing fee, and that they are mandatory or unavoidable. 28:00 Sen. Marsha Blackburn (R-TN): The way I look at this issue, and the way many Tennesseans look at it, is this is another way for the FTC, the CFPB, DoT, and all these regulators to clamp down on businesses and try to micro manage businesses. 30:42 Dr. Vicki Morwitz: as a strategy where firms decide to divide a product's price into two or more mandatory parts, a base price for the main product and one or more mandatory surcharges, rather than charging a single all-inclusive price. For example, many hotels have a mandatory fee on top of the daily room rate. These are sometimes called resort fees, or facility fees, or destination fees and can range from $20 to over $50 a night. And many rental car agencies assess several mandatory fees on top of the daily rental rate, such as concession recovery fees, customer facility fees, energy recovery fees, and vehicle licensing fees. 31:20 Dr. Vicki Morwitz: In general, what research on partition pricing has shown is that when firms separate out mandatory surcharges consumers tend to underestimate the total price they'll have to pay and they're often more likely to complete the purchase. 31:50 Dr. Vicki Morwitz: With drip pricing, firms advertise only part of our products' price upfront and reveal other charges later, as shoppers go through the buying process. Drip fees can be mandatory or can be for optional items, but for today's testimony I'll focus on the dripping of mandatory surcharges. Drip pricing is commonly used in industries like the cable TV and the ticketing industries. When a consumer shops for a TV-Internet bundle from a cable television provider, they may first see an attractive base price offer for the bundle, but later learn there are also broadcast TV fees, set top box fees, regional sports fees, and TV connection fees that raise the price considerably. And a consumer shopping for a ticket for a live event, like a concert, a play, or a baseball game, typically first sees the price for different seats in the venue. After selecting a seat, as the consumer clicks through more webpages, they may come to learn there's also a mandatory booking fee, ticketing fee, venue fee, and delivery fee, even when the tickets are delivered electronically. Eventually, they see a total price that may be much higher than the first price they saw and they may be under time pressure to complete the purchase, as there might be a countdown clock that indicates they have to complete their purchase in just a few minutes. Or they may be told there's only two seats left at that price. 33:00 Dr. Vicki Morwitz: What research has shown is that when surcharges are dripped, consumers end up being more likely to buy a product that appears cheaper upfront based only on the base price, but that's more expensive and total given the drip fees. Consumers also tend to buy more expensive products than they otherwise would, such as a seat closer to the stage for a live event. 35:00 Dr. Vicki Morwitz: These policies will benefit consumers if they require that upfront stated prices must be all-inclusive. In other words, all mandatory fees must be included in the total price and that the total price should be seen upfront. This is what academic research suggests will be most beneficial to consumers. 39:20 Dr. Todd Zywicki: Everybody knows bags fly free on Southwest, everybody knows bags don't fly free on the legacy airlines, everybody knows there's going to be a fee for for bags on the other airlines and the like. Maybe there's ways you can disclose it, but nobody's fooled at this point. 42:45 Sally Greenberg: If consumers hate junk fees so much, why do companies large and small increasingly impose them? The answer is, unsurprisingly, because they are a substantial profit center. 43:20 Sally Greenberg: Late payment fees charged by banks and credit cards cost American families an estimated $12 billion annually. These fees, which can be as much as $41 for each Late Fee Payment, far exceed the cost to the issuer for processing and do little to deter future delinquent payments. 43:40 Sally Greenberg: Airlines are also poster children for junk fees. Globally, revenue from junk fees, ancillary fees in airline speak, brought in $102.8 billion in 2022. To put this in perspective, junk fees last year made up 15% of global airline revenues, compared to 6% only 10 years ago. 44:00 Sally Greenberg: Anyone who buys tickets to a concert or sporting event is well acquainted with the myriad fees. They're added at the end of the ticket buying process. We have the example that you showed, Senator Hickenlooper. Primary and secondary market ticketing companies charge service fees, order processing fees, delivery fees and other charges that increased ticket prices on average 27% for the primary market and 31% for the secondary market. 45:05 Sally Greenberg: Junk fees themselves are anti-competitive. They make comparing prices more difficult, distorting well functioning marketplaces. Honest entrepreneurs who invest in their businesses, innovate, and strive to create better value for their customers lose business. Action to address the consumer and competitive harm created by junk fees is urgently needed. 45:30 Sally Greenberg: First, we would urge you to support S. 916. It's the Junk Fee Prevention Act, which would require some of the worst abusers of junk fees to display the full price of services upfront, and they would bar excessive fees and ensure transparency. Second, we ask that Congress restore the FTC's ability to obtain strong financial penalties from wrongdoers. The Supreme Court, in 2021, overturned AMG Capital Management v. FTC, wiping out a critical enforcement tool for the commission. S. 4145, which is the Consumer Protection Remedies Act, would restore that ability to impose monetary relief to the commission. And finally, Congress must not allow businesses that trap consumers with unfair and deceptive fees to escape accountability through fine print in their contracts. To that end, we're proud to support S. 1376, the Forced Arbitration Injustice Repeal Act, which would prohibit pre-dispute arbitration agreements from being enforceable if they require arbitration in employment, consumer, antitrust, or civil rights disputes 44:35 Sally Greenberg: Renters, for example, tend to have lower incomes than those who own their homes. These consumers are also some of the most preyed upon by abusive junk fees. A 2022 survey conducted by Consumer and Housing Advocates found that 89% of landlords imposed some rental application fees[[ clare, 8/7/2023 2:09 PM couldn?t find this specific survey]], nearly as many renters paid excessive late fees and they also get hit with utility, administrative, convenience, insurance, and notice fees. 51:30 Sen. Marsha Blackburn (R-TN): I'm not hearing from Tennesseans about junk fees. They're just not talking about. They are talking about real economic harm. And I think for some it's been kind of perplexing that we would focus on this issue. I even had one Tennessean say, "Well, what exactly is a junk fee? And what are the economic harms that come to people for fees for discretionary services?" 53:20 Dr. Todd Zywicki: I can't see any reason why people who pay their credit cards on time should have to subsidize people who pay their credit cards late. The evidence is clear on this from the that if you reduce late fees, more people pay late. The makes clear that if you reduce late fees, everybody ends up paying higher interest rates and, and lower income and higher risk borrowers get less access to credit. So most of what we see in the market is efficient. It prevents cross consumer subsidies and a lot of these things that are labeled as junk fees are actually just efficient multi-part pricing. 1:00:30 Dr. Vicki Morwitz: When a larger firm, or really any firm, uses hidden fees or surcharges, it doesn't only hurt consumers, but it hurts well intentioned, honest competitors like many of our country's small businesses that you're talking about. So when a larger firm makes salient a lower base price and only puts in small print or only reveals at the end of the shopping process that there are additional mandatory fees, their product offerings may appear, at least at first, to be cheaper than those of say a small business, an honest competitor who uses all inclusive prices, whose prices at least at first then, will appear more expensive, even if they're actually cheaper in total when the hidden fees of the large firm are added in. Now, research shows this is going to lead consumers to be more likely to even first consider the products and services of the larger firm who uses hidden surcharges because their products seem cheaper. In other words, their supposed low prices draw consumers in. But then having first consider their products consumers will also be more likely to stick with that firm and ultimately purchase their products, even when they're more expensive in total with the fees. So these hidden fees, they don't only hurt consumers by leading them to make purchases that are against their own self interest, but it also hurts honest competitors who are using transparent pricing practices. 1:04:10 Sen. Amy Klobuchar (D-MN): One area of this high excessive fees is ticketing. We had the hearing earlier this year with the president of Live Nation/ Ticketmaster, and other witnesses and as you are aware, the facts are quite startling. It's being reviewed by the Justice Department, including 90% monopoly on ticketing for major NFL, NHL events, 80% for major arena events, and 70% monopoly when it comes to all ticketing. In addition to that, Ticketmaster now owns a number of venues and also locks in a number of other venues that they don't own with their services for in excess of seven years, which is a subject of a bill that Senator Blumenthal and I have introduced, because this locking in makes for even less competition. And then finally, Live Nation promotes the act. So it's like a three cornered monopoly. 1:12:30 Sally Greenberg: Yes, you may know that you have a baggage fee, but there are many people who are older, who have disabilities, who may have children with them; they cannot be carrying their bags onto the airplane. So they are forced to eat the cost of a $35 fee, something that used to be free before, and has jammed our airplanes full of luggage up top, creating hazards for flight attendants as well. 1:13:55 Sally Greenberg: We certainly support the Good Jobs for Airports Act. I think many consumers had no idea that a lot of these workers were not making minimum wage[[ clare, 8/7/2023 2:08 PM couldn?t find a source for this.]], were relying on tips. And many people who use the wheelchairs and the curbside baggage services did not know that people were living on tip wages and many people don't tip, as some of us who've been tipped workers know. Tipping is very up and down and certainly not a reliable source of income. So yes, we very much appreciate that legislation and it's long overdue. 1:21:20 Dr. Todd Zywicki: Junk fees is a meaningless term, but it's worse than meaningless. It's actually pernicious, which is that by sort of using this blanket conclusory label, it obscures the complexity of this, the difference between trip pricing, risk based pricing, multipart pricing, partition pricing, and that sort of thing, and it kind of sweeps into one bucket things that are legitimate, things that are aren't, things that might be partially legitimate. And now it's even got more confusing because if you look at the FTC rule, for example, on auto dealers, they take things like nitrogen filled tires, they charge more money for a claim that's a junk fee. The problem with that is not that it's a separate price for nitrogen filled tires. The problem, if there's a problem, is that nitrogen filled tires are garbage, right? There's nothing there. It doesn't matter whether it's disclosed separately or bundled in the price if it's a worthless product. And so when we talk about junk fees, we can end up confusing ourselves, lumping in things because we want to just apply this label to it, whereas I think it'd be much better to understand risk based pricing. What are things where they're pricing for something that you get no value from? What are the things where they're pricing things simply to extract wealth from consumers and the like? Executive Producer Recommended Sources Music by Editing Production Assistance
2023-09-04
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CD279: The Censure of Adam Schiff

On June 21st, the House of Representatives censured Rep. Adam Schiff of California. The House has censured members just 24 times in our nation?s history, making Schiff the 25th. In this episode, we'll detail the actions outlined in the censure and let you decide for yourself: Is it a serious abuse of power? Is it a waste of time? Is it a deserved punishment? Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The History of Censure U.S. House of Representatives Office of History, Art and Archives. July 22, 2023. Wikipedia. The Durham Report John Durham. May 12, 2023. U.S. Department of Justice. FISA Warrants Rebecca Beitsch. July 21, 2023. The Hill. Andrew Prokop. February 24, 2018. Vox. February 5, 2018. U.S. House of Representatives The Whistleblower Julian E. Barnes et al. October 2, 2019. The New York Times. Julian E. Barnes and Nicholas Fandos. September 17, 2019. The New York Times. Kyle Cheney. September 13, 2019. Politico. Republicans Who Blocked the First Censure Jared Gans. June 16, 2023. The Hill. Senate Campaign Fundraising Jamie Dupree. July 17, 2023. Regular Order. Impeachment Mania Don Wolfensberger. July 10, 2023. The Hill. Alex Gangitano and Brett Samuels. July 1, 2023. The Hill. Rebecca Beitsch and Emily Brooks. June 29, 2023. The Hill. The Resolution Audio Sources June 21, 2023 House Floor June 21, 2023 House Floor Clips 1:15 Rep. Anna Paulina Luna (R-FL): With access to sensitive information unavailable to most Members of Congress, and certainly not accessible to the American people, Representative SCHIFF abused his privileges, claiming to know the truth, while leaving Americans in the dark about this web of lies. These were lies so severe that they altered the course of the country forever: the lie that President Donald Trump colluded with Russia to steal the 2016 Presidential election revealed to be completely false by numerous investigations, including the Durham report; the lie that the Steele dossier?a folder of falsified and since completely debunked collusion accusations funded by the Democratic Party?had any shred of credibility, yet Representative SCHIFF read it into the CONGRESSIONAL RECORD as fact; the lies concocted and compiled in a false memo that was used to lie to the FISA court, to precipitate domestic spying on U.S. citizen, Carter Page, violating American civil liberties. 12:20 Rep. Adam Schiff (D-CA): Mr. Speaker, to my Republican colleagues who introduced this resolution, I thank you. You honor me with your enmity. You flatter me with this falsehood. You, who are the authors of a big lie about the last election, must condemn the truthtellers, and I stand proudly before you. Your words tell me that I have been effective in the defense of our democracy, and I am grateful. 13:15 Rep. Adam Schiff (D-CA): Donald Trump is under indictment for actions that jeopardize our national security, and MCCARTHY would spend the Nation?s time on petty political payback, thinking he can censure or fine Trump?s opposition into submission. But I will not yield, not one inch. The cost of the Speaker?s delinquency is high, but the cost to Congress of this frivolous and yet dangerous resolution may be even higher, as it represents another serious abuse of power. 14:50 Rep. Adam Schiff (D-CA): This resolution attacks me for initiating an investigation into the Trump campaign?s solicitation and acceptance of Russian help in the 2016 election, even though the investigation was first led not by me but by a Republican chairman. 15:10 Rep. Adam Schiff (D-CA): It would hold that when you give internal campaign polling data to a Russian intelligence operative while Russian intelligence is helping your campaign, as Trump?s campaign chairman did, that you must not call that collusion, though that is its proper name, as the country well knows. 15:30 Rep. Adam Schiff (D-CA): It would fine me for the costs of the critically important Mueller investigation into Trump?s misconduct, even though the special counsel was appointed by Trump?s own Attorney General. 16:00 Rep. Adam Schiff (D-CA): It would reprimand me over a flawed FISA application, as if I were its author or I were the Director of the FBI, and over flaws only discovered years later and by the inspector general, not Mr. Durham. In short, it would accuse me of omnipotence, the leader of some vast deep state conspiracy. Of course, it is nonsense. 16:50 Rep. Adam Schiff (D-CA): My colleagues, if there is cause for censure in this House, and there is, it should be directed at those in this body who sought to overturn a free and fair Election. 19:05 Rep. Mary Miller (R-IL): Representative SCHIFF used his position as the chairman of the House Intelligence Committee to mislead the American people by falsely claiming that there was classified evidence of Russia colluding with President Trump, which was not true. 22:15 Rep. Nick Langworthy (R-NY): SCHIFF repeatedly used the authority he was afforded in his position as chairman to lie to the American people to support his political agenda. Even after the Durham report discredited the Russia hoax, he continued to knowingly lie and peddle this false narrative. 24:45 Rep. Hakeem Jeffries (D-NY): ADAM SCHIFF has done nothing wrong. ADAM SCHIFF is a good man. ADAM SCHIFF has served this country with distinction. ADAM SCHIFF served this country well as a Federal prosecutor, fighting to keep communities safe. ADAM SCHIFF served this country well as the chair of the House Intelligence Committee, investigating people without fear or favor, including those at 1600 Pennsylvania Avenue because he believes in the Constitution and his oath of office. ADAM SCHIFF served his country well as the lead impeachment manager during the first impeachment trial of the former President of the United States, prosecuting his corrupt abuse of power. Yes, ADAM SCHIFF served this country well in the aftermath of the violent insurrection. He pushed back against the big lie told by the puppet master in chief and participated as a prominent member of the January 6th Committee to defend our democracy. ADAM SCHIFF has done nothing wrong. He has worked hard to do right by the American people. The extreme MAGA Republicans have no vision, no agenda, and no plan to make life better for the American people, so we have this phony, fake, and fraudulent censure resolution. A DAM SCHIFF will not be silenced. We will not be silenced. House Democrats will not be silenced today. We will not be silenced tomorrow. We will not be silenced next week. We will not be silenced next month. We will not be silenced next year. We will not be silenced this decade. We will not be silenced this century. You will never ever silence us. We will always do what is right. We will always fight for the Constitution, fight to defend democracy, fight for freedom, expose extremism, and continue America?s long, necessary, and majestic march toward a more perfect Union. 29:10 Rep. Ralph Norman (R-SC): Not only did he spread falsehoods that abused his power, he went after a man, Carter Page, who was completely innocent. Inspector General Horowitz found 17 major mistakes. 31:20 Rep. Mike Quigley (D-IL): What really gnaws on the majority and what really bothers them is that Mr. SCHIFF was way better than anybody on their team at debate, at leadership, at messaging, and at legal knowledge. He kicked their ass. He was better, he was more effective, and that still bothers them. 35:40 Rep. Tom McClintock (R-CA): Mr. Speaker, I opposed the original version of this resolution, not to defend Mr. SCHIFF?s lies, but to defend the process that exposed those lies. We must never punish speech in this House, only acts. The only way to separate truth from falsehoods or wisdom from folly is free and open debate. We must never impose excessive fines that would effectively replace the constitutional two-thirds vote for expulsion with a simple majority. This new version removes the fine and focuses instead on specific acts, most particularly the abuse of his position as Intelligence Committee chairman by implying he had access to classified information that did not exist and his placement into the CONGRESSIONAL RECORD of the Steele dossier that he knew or should have known was false. 42:35 Rep. Jim Himes (D-CT): The most important thing I can say is that I sat next to ADAM SCHIFF for years. He is a man of integrity and dignity. 49:45 Rep. Sylvia Garcia (D-TX): ADAM SCHIFF is tough. ADAM SCHIFF is smart. ADAM SCHIFF gets the job done. ADAM SCHIFF holds the powerful accountable. 56:35 Rep. André Carson (D-IN): Mr. Speaker, what I do know is that ADAM SCHIFF defended the U.S. Constitution. He led an impartial investigation which followed the facts and led to the first of two impeachments of a former President. 1:00:20 Rep. Raja Krishnamoorthi (D-IL): Today, we are voting on a joke of a measure to censure ADAM SCHIFF, a true public servant and patriot. I urge a strong ??no?? against this resolution targeting a true American hero. 1:08:30 Rep. Nancy Pelosi (D-CA): The only advantage to all of this is that instead of reversing what we did on the IRA to save the planet or reversing what we did to reduce the cost of prescription drugs, we are wasting time. September 26, 2019 CNN Clips 9:05 Wolf Blitzer: As you know, Mr. Chairman, you're being severely criticized by a lot of Republicans for mocking the president during your opening remarks today at the committee. Was it a mistake to make light of the situation? Rep. Adam Schiff (D-CA): Well, I don't think it's making light of a situation. And I certainly wouldn't want to suggest that there's anything comical about this. But I do think it's all too accurate, that this President, in his conversations with the President of Ukraine, was speaking like an organized crime boss. And the fact that these words are so suggestive that the President used of what we have seen of organized crime harkens back to me of what, for example, James Comey said when he was asked by the President if he could let this matter involving Flynn go, when Michael Cohen testified about how the President speaks in a certain code where you understand exactly what's required here. The point is that the President was using exactly that kind of language. And the President of Ukraine fully understood what he was talking about. Wolf Blitzer: Do you regret the, what you call the parody, the use of those phrases during the course of your opening statement? Rep. Adam Schiff (D-CA): No, I think everyone understood -- and my GOP colleagues may feign otherwise -- that when I said, suggested that it was as if the President said, "listen carefully, because I'm only going to tell you seven more times" that I was mocking the President's conduct. But make no mistake about this, what the President did is of the utmost gravity and the utmost seriousness, because it involves such a fundamental betrayal of his oath. September 26, 2019 House Permanent Select Committee on Intelligence Witnesses: Joseph Maguire, Acting Director of National Intelligence, Office of the Director of National Intelligence Clips 6:54 Rep. Adam Schiff (D-CA): President Zelensky, eager to establish himself at home as the friend of the president of the most powerful nation on earth, had at least two objectives: get a meeting with the president and get more military help. And so what happened on that call? Zelensky begins by ingratiating himself, and he tries to enlist the support of the president. He expresses his interest in meeting with the president, and says his country wants to acquire more weapons from us to defend itself. 7:30 Rep. Adam Schiff (D-CA): And what is the President?s response? Well, it reads like a classic organized crime shakedown. Shorn of its rambling character and in not so many words, this is the essence of what the President communicates. We?ve been very good to your country. Very good. No other country has done as much as we have. But you know what? I don?t see much reciprocity here. I hear what you want. I have a favor I want from you, though. And I?m going to say this only seven times, so you better listen good. I want you to make up dirt on my political opponent. Understand? Lots of it, on this and on that. I'm gonna put you in touch with people, not just any people, I'm going to put you in touch with Attorney General of the United States, my attorney general, Bill Barr. He's got the whole weight of the American law enforcement behind him. And I'm gonna put you in touch with Rudy, you're going to love Him, trust me. You know what I'm asking. And so I'm only going to say this a few more times, in a few more ways. And by the way, don't call me again, I'll call you when you've done what I asked. This is, in some in character, what the President was trying to communicate with the President of Ukraine. It would be funny if it wasn't such a graphic betrayal of the President's oath of office. But as it does represent a real betrayal, there's nothing the President says here that is in America's interest, after all. 1:14:40 Rep. Mike Turner (R-OH): While the chairman was speaking I actually had someone text me, "Is he just making this up?" And yes, yes he was. Because sometimes fiction is better than the actual words or the texts. But luckily the American public are smart and they have the transcript, they've read the conversation, they know when someone's just making it up. 1:19:45 Rep. Adam Schiff (D-CA): In my summary, the President's call was meant to be at least part in parody. The fact that that's not clear is a separate problem in and of itself. Of course, the president never said, "If you don't understand me, I'm gonna say seven more times." My point is, that's the message that the Ukraine president was receiving, in not so many words. September 17, 2019 Morning Joe on MSNBC Clips Rep. Adam Schiff (D-CA): We have not spoken directly with the whistleblower. We would like to. But I'm sure the whistleblower has concerns that he has not been advised as the law requires by the Inspector General or the Director of National Intelligence, just as to how he is to communicate with Congress. And so the risk of the whistleblower is retaliation. Will the whistleblower be protected under the statute if the offices that are supposed to come to his assistance and provide the mechanism are unwilling to do so? But yes, we would love to talk directly with the whistleblower. March 28, 2019 CNN with Chris Cuomo Clips Rep. Adam Schiff (D-CA): One, there's ample evidence of collusion in plain sight and that is true. And second, that is not the same thing as whether Bob Muller would be able to prove beyond a reasonable doubt the crime of conspiracy. There's a difference between there being evidence of collusion and proof beyond reasonable doubt of a crime. March 24, 2019 This Week with George Stephanopoulos Clips George Stephenopolous: You have said though in the past there is significant evidence of collusion. How do you square that with Robert Muller's decision not to indict anyone. Rep. Adam Schiff (D-CA): There is significant evidence of collusion, and we've set that out time and time again, from the secret meetings in Trump Tower to the conversations between Flynn and the Russian ambassador, to the providing of polling data to someone linked to Russian intelligence, and Stone's conversation with WikiLeaks and the GRU through -- George Stephenopolous: None of it prosecuted. Rep. Adam Schiff (D-CA): Well that's true. And as I pointed out on your show many times, there's a difference between compelling evidence of collusion and whether the Special Counsel concludes that he can prove beyond a reasonable doubt the criminal charge of conspiracy. Rep. Adam Schiff (D-CA): We need to be able to see any evidence that this President, or people around him, may be compromised by a foreign power. We've of course seen all kinds of disturbing indications that this President has a relationship with Putin that is very difficult to justify or explain. Rep. Adam Schiff (D-CA): It's our responsibility to tell the American people, "These are the facts. This is what your president has done. This is what his key campaign and appointees have done. These are the issues that we need to take action on." This is potential compromise. There is evidence, for example, quite in the public realm that the President sought to make money from the Russians, sought the Kremlin's help to make money during the presidential campaign, while denying business ties with the Russians. February 17, 2019 CNN with Dana Bash Clips Rep. Adam Schiff (D-CA): Look, you can see evidence in plain sight on the issue of collusion, pretty compelling evidence. Now, there's a difference between seeing evidence of collusion and being able to prove a criminal conspiracy beyond a reasonable doubt. August 5, 2018 Face the Nation Clips Margaret Brennan: Can you agree that there has been no evidence of collusion, coordination, or conspiracy that has been presented thus far between the Trump campaign and Russia? Rep. Adam Schiff (D-CA): No, I don't agree with that at all. I think there's plenty of evidence of collusion or conspiracy in plain sight. December 10, 2017 CNN Clips Rep. Adam Schiff (D-CA): But we do know this: the Russians offered help, the campaign accepted help. The Russians gave help and the President made full use of that help, and that is pretty damning whether it is proof beyond a reasonable doubt of conspiracy or not. November 1, 2017 MSNBC Clips Rep. Adam Schiff (D-CA): What is clear as this: the Kremlin repeatedly told the campaign it had dirt on Clinton and offered to help it and at least one top Trump official, the President's own son, accepted. Rachel Maddow: The Kremlin offered dirt to the Trump campaign. The President's campaign said yes to that offer. That's no longer an open question. All that stuff has now been proven and admitted to. Adam Schiff, the top Democrat on the House Intelligence Committee today, using his time today, using his opening statement today to walk through -- ding ding ding, point by point -- what we've already learned in black and white, in written correspondence and public statements and in freaking court filings, about all the times the Trump campaign was offered helped by Russia to influence our election and all the times the Trump campaign said "Yes, please." March 23, 2017 The View Clips Jedediah Bila: Congressman, you made yesterday what some are deeming a provocative statement by saying that there is more than circumstantial evidence now that the Trump camp colluded with Russia. Senator John McCain was critical of that, others have been critical of that. Can you defend that statement? Rep. Adam Schiff (D-CA): Yes. And I, you know, I don't view it as the same bombshell that apparently they did. Look, I've said that I thought there was circumstantial evidence of collusion or coordination, and that there was direct evidence of deception. And no one had an issue with that. And I don't think anyone really contested that, on the basis of the information we keep getting, I can say, in my opinion, it's now not purely circumstantial. We had the FBI Director testify in open session about this, acknowledge an FBI investigation. Obviously, this is now public. And I think it's fair to say that that FBI investigation is justified, that that wouldn't be done on the basis of not credible allegations. And so I think it's appropriate to talk in general terms about the evidence, but I don't think it's appropriate for us to go into specifics and say, "This is what we know from this piece of classified information," or "this what we know from this witness." But I do think, in this investigation where the public is hungry for information, it is important that we try to keep the public in the loop. That's why we're having public hearings. March 22, 2017 MSNBC Clips Chuck Todd: You have seen direct evidence of collusion? Rep. Adam Schiff (D-CA): I don't want to go into specifics, but I will say that there is evidence that is not circumstantial. March 19, 2017 Meet the Press Clips Chuck Todd: Collusion is sort of what hasn't been proven here between whatever the Russians did and the Trump campaign. In fact, the former Acting Director of the CIA, who was Mike Morell, who was a supporter of Hillary Clinton, he essentially reminded people and took Director Clapper at his word on this show who said, there has been no evidence that has been found of collusion. Are we at the point of -- at what point do you start to wonder if there is a fire to all this smoke? Rep. Adam Schiff (D-CA): Well, first of all, I was surprised to see Director Clapper say that because I don't think you can make that claim categorically as he did. I would characterize it this way at the outset of the investigation: there is circumstantial evidence of collusion. There is direct evidence, I think, of deception. Executive Producer Recommended Sources Music by Editing Production Assistance
2023-08-13
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CD278: All Three UAP Hearings

Since May 2022, Congress has held three hearings looking into Unidentified Aerial Phenomena and the possibility of non-human intelligent life flying aircraft on Earth. In this episode, hear testimony from three Defense Department officials and three credible whistleblowers, whose testimony is often as contradictory as it is shocking. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Whistleblower Protections Clayton E. Wire. 2020. Ogborn Mihm LLP. Security Classifications Security Classification of Information, Volume 2. Principles for Classification of Information. Arvin S. Quist. Oak Ridge National Laboratory: 1993. UAP Background Brian Entin. June 6, 2023. NewsNation. Leslie Kean and Ralph Blumenthal. June 5, 2023. The Debrief. May 16, 2021. 60 Minutes. Ralph Blumenthal. December 18, 2017. The New York Times. Helene Cooper et al. December 16, 2017. The New York Times. Independent Research and Development National Defense Industrial Association. SCIFs Derek Hawkins et al. April 26, 2023. The Washington Post. Kirkpatrick Response Letter D. Dean Johnson (@ddeanjohnson). Twitter. Audio Sources July 26, 2023 House Committee on Oversight and Accountability, Subcommittee on National Security, the Border, and Foreign Affairs Witnesses: , Former Commanding Officer, United States Navy Ryan Graves, Executive Director, Americans for Safe Aerospace David Grusch, Former National Reconnaissance Office Representative, Unidentified Aerial Phenomena Task Force, Department of Defense Clips timestamps reflect C-SPAN video 4:30 Rep. Glenn Grothman (R-WI): The National Defense Authorization Act of 2022 established the All-domain Anomaly Resolution Office or AARO to conduct or to coordinate efforts across the Department of Defense and other federal agencies to detect, identify and investigate UAPs. However, AARO's budget remains classified, prohibiting meaningful oversight from Congress. 19:50 Rep. Robert Garcia (D-CA): We know the Senate is taking up an amendment to their defense authorization bill which will create a commission with broad declassification authority and we should all agree that that is an important step. 27:40 Ryan Graves: Excessive classification practices keep crucial information hidden. Since 2021, all UAP videos are classified as secret or above. This level of secrecy not only impedes our understanding, but fuels speculation and mistrust. 27:55 Ryan Graves: In 2014, I was an F-18 Foxtrot pilot in the Navy fighter attack Squadron 11, the Red Rippers, and I was stationed at NAS Oceana in Virginia Beach. After upgrades were made to our jet's radar systems, we began detecting unknown objects operating in our airspace. At first, we assumed they were radar errors. But soon we began to correlate the radar tracks with multiple onboard sensors, including infrared systems, and eventually through visual ID. During a training mission in Warning Area W-72, 10 miles off the coast of Virginia Beach. Two F/A-18F Super Hornets were split by a UAP. The object, described as a dark gray or a black cube inside of a clear sphere, came within 50 feet of the lead aircraft and was estimated to be five to 15 feet in diameter. The mission commander terminated the flight immediately and returned to base. Our squadron submitted a safety report, but there was no official acknowledgement of the incident and no further mechanism to report the sightings. Soon these encounters became so frequent that aircrew would discuss the risk of UAP as part of their regular pre-flight briefs. 29:00 Ryan Graves: Recognising the need for action and answers, I founded Americans for Safe Aerospace. The organization has since become a haven for UAP witnesses who were previously unspoken due to the absence of a safe intake process. More than 30 witnesses have come forward and almost 5000 Americans have joined us in the fight for transparency at safeaerospace.org 29:20 Ryan Graves: The majority of witnesses are commercial pilots at major airlines. Often, they are veterans with decades of flying experience. Pilots are reporting UAP at altitudes that appear above them at 40,000 feet potentially in low Earth orbit or in the gray zone below the Karman Line, making unexplainable maneuvers like right hand turns and retrograde orbits or J hooks. Sometimes these reports are reoccurring with numerous recent sightings north of y and in the North Atlantic. Other veterans are also coming forward to us regarding UAP encounters in our airspace and oceans. The most compelling involve observations of UAP by multiple witnesses and sensor systems. I believe these accounts are only scratching the surface and more will share their experiences once it is safe to do so. 31:30 David Grusch: I became a whistleblower through a PPD 19 urgent concern filing in May 2022 with the intelligence community Inspector General following concerning reports from multiple esteemed and credentialed current and former military and intelligence community individuals that the US government is operating with secrecy above congressional oversight with regards to UAPs. My testimony is based on information I've been given by individuals with a long standing track record of legitimacy and service to this country, many of whom also have shared compelling evidence in the form of photography, official documentation, and classified oral testimony to myself and my various colleagues. I have taken every step I can to corroborate this evidence over a period of four years while I was with the UAP Task Force and do my due diligence on the individual sharing it. Because of these steps. I believe strongly in the importance of bringing this information before you. 33:30 David Grusch: In 2019, the UAP Task Force director asked me to identify all Special Access Programs and Controlled Access Programs, also known as SAPS and CAPS. We needed to satisfy our congressionally mandated mission and we were direct report at the time to the [Deputy Secretary of Defense]. At the time, due to my extensive executive level intelligence support duties, I was cleared to literally all relevant compartments and in a position of extreme trust both in my military and civilian capacities. I was informed in the course of my official duties of a multi-decade UAP crash retrieval and reverse engineering program to which I was denied access to those additional read-ons when I requested it. I made the decision based on the data I collected to report this information to my superiors and multiple Inspectors General and, in effect, becoming a whistleblower. 35:20 Cmdr. David Fravor: We were attached to carrier 11, stationed onboard USS Nimitz and began a two month workup cycle off the coast of California. On this day, we were scheduled for a two v two air-to-air training with the USS Princeton as our control. When we launched off Nimitz, my wingman was joining out, we were told that the training was going to be suspended and we're going to proceed with real world tasking. As we proceeded to the West, the air controller was counting down the range to an object that we were going to and we were unaware of what we're going to see when we arrived. There, the controller told us that these objects had been observed for over two weeks coming down from over 80,000 feet, rapidly descending to 20,000 feet, hanging out for hours and then going straight back up. For those who don't realize, above 80,000 feet is space. We arrived at the location at approximately 20,000 feet and the controller called the merge plot, which means that our radar blip was now in the same resolution cell as a contact. As we looked around, we noticed that we saw some whitewater off our right side. It's important to note the weather on this day was as close to perfect as you could ask for off the coast of San Diego: clear skies, light winds, calm seas, no white caps from waves. So the whitewater stood out in a large blue ocean. All four of us, because we were in an F/A-18F F, so we had pilots and WSO in the backseat, looked down and saw a white tic tac object with a longitudinal axis pointing north-south and moving very abruptly over the water, like a ping pong ball. There were no rotors, no rotor wash, or any sign of visible control surfaces like wings. As we started clockwise towards the object, my WSO I decided to go down and take a closer look with the other aircraft staying in high cover to observe both us and the tic tac. We proceeded around the circle about 90 degrees from the start of our descent, and the object suddenly shifted its longitudinal axis, aligned it with my aircraft and began to climb. We continued down another 270 degrees, and we went nose low to where the tic tac would have been. Our altitude at this point is about 15,000 feet and the tic tac was about 12,000. As we pulled nose-on to the object within about a half mile of it, it rapidly accelerated in front of us and disappeared. Our wingmen, roughly 8000 feet above us, lost contact also. We immediately turned back to see where the whitewater was at and it was gone also. So as you started to turn back towards the east the controller came up and said "Sir you're not going to believe this but that thing is that your cat point roughly 60 miles away in less than a minute." You can calculate the speed. We returned to Nimitz. We were taking off our gear, we were talking to one of my crews that was getting ready to launch, we mentioned it to them and they went out and luckily got the video that you see, that 90 second video. What you don't see is the radar tape that was never released, and we don't know where it's at. 37:55 Cmdr. David Fravor: What is shocking to us is that the incident was never investigated. None of my crew ever questioned and tapes were never taken and after a couple days it turned into a great story with friends. It wasn't until 2009 until J. Stratton had contacted me to investigate. Unbeknownst to all, he was part of the AATIP program at the Pentagon led by Lue Elizondo. There was an unofficial official report that came out it's now in the internet. Years later, I was contacted by the other pilot Alex Dietrich and asked if I'd been contacted and I said "No, but I'm willing to talk." I was contacted by Mr. Elizondo, and we talked for a short period of time, he said we'd be in contact. A few weeks after that I was made aware that Lue had left the Pentagon in protest and joined forces with Tom DeLonge and Chris Mellon, Steve Justice, and others to form To the Stars Academy, an organization that pressed the issue with leading industry experts and US government officials. They worked with Leslie Kean, who is present today, Ralph Blumenthal, and Helene Cooper to publish the articles in the New York Times in 2017. It removed the stigma on the topic of UFOs, which is why we're here today. Those articles opened the door for the government and public that cannot be closed. It has led to an interest from our elected officials, who are not focused on Little Green Men, but figuring out where these craft are, where they are from, the technology they possess, how do they operate. It also led to the Whistleblower Protection Act in the NDAA. 39:45 Cmdr. David Fravor: In closing, I would like to say that the tic tac object we engaged in 2004 was far superior to anything that we had on time, have today, or are looking to develop in the next 10 years. If we, in fact, have programs that possess this technology and needs to have oversight from those people, that the citizens of this great country elected in office to represent what is best for the United States and best for the citizens. I thank you for your time. 40:20 Rep. Glenn Grothman (R-WI): Are your pilots, or pilots that you interact with as part of your organization, do you feel adequately trained and briefed on how to handle encounters with UAPs? Ryan Graves: No. Right now, military witnesses to UAP have limited options for reporting UAP. But more more concerning is that the commercial aviation sector has not adapted to the lessons that the military has implemented. The military and Department of Defense have stated that UAP represent a critical aviation safety risk. We have not seen that same language being used in the commercial markets, they are not acknowledging this. 41:05 Ryan Graves: Right now we need a system where pilots can report without fear of losing their jobs. There's a fear that the stigma associated with this topic is going to lead to professional repercussions either through management or perhaps through their yearly physical check. So having a secure system, reducing the stigma, and making this information available through the public is going to reduce the concerns that aircrew have. 41:30 Rep. Glenn Grothman (R-WI): Can you just give me a little idea the degree to which reports in the past are not made public right now? Ryan Graves: Well, I don't think there has been a proper reporting system to gather those reports and thus not report them. So to answer your question, I think there is a dearth of data due to the fact that the reporting has been limited up to this time. 41:45 Ryan Graves: There's certainly some national security concerns when we use our advanced sensors and our tactical jets to be able to identify these objects. However, there's no reason that the objects themselves would be classified. I would be curious to see how the security classification guideline actually spells out the different nuances of how this topic is classified from the perspective of UAP, not national security. 43:00 Rep. Glenn Grothman (R-WI): Mr. Fravor, the tic tac incident that you were engaged [in] occurred in 2004. What kind of reporting took place after that incident? Ryan Graves: None. We had a standard debrief where the back-seaters went down to our carrier intel center and briefed what had happened, and that was it. No one else talked to us. And I was in the top 20 in the battle group, no one came that the Captain was aware, the of Admiral was aware, nothing was done. Rep. Glenn Grothman (R-WI): Did your commanding officers provide any sort of justification? Ryan Graves: No, because I was the commanding officer of the quadron. So no. Rep. Glenn Grothman (R-WI): Was this incident the only UAP event that you encountered while you were a pilot? Ryan Graves: Yes, it was. 43:50 Rep. Glenn Grothman (R-WI): Do you believe UAPs pose a potential threat to our national security? Ryan Graves: Yes, and here's why: the technology that we faced was far superior than anything that we had, and you could put that anywhere. If you had one, you captured one, you reverse engineered it, you got it to work, you're talking something that can go into space, go someplace, dropped down in a matter of seconds, do whatever it wants and leave. And there's nothing we can do about it. Nothing. 44:20 Ryan Graves: I would also like to add from a commercial aviation and military aviation perspective, we deal with uncertainty in our operating space as a matter of our professional actions. Identifying friend from foe is very important to us. And so when we have identified targets and we continue to ignore those due to a stigma or fear of what it could be, that's an opening that our adversaries can take advantage of. 44:55 Ryan Graves: There needs to be a location where this information is centralized for processing and there needs to be a two-way communication loop so the operators on the front end have feedback and can get best practices on how to process information, what to do, and to ensure that their reporting is being listened to. Right now there is not a lot of back and forth. 46:25 Ryan Graves: When we were first experiencing these objects off the eastern seaboard in the 2014 to 2015 time period, anyone that had upgraded their radar systems were seeing these objects. So there was a large number of my colleagues that were detecting these objects off the eastern seaboard. They were further correlating that information with the other onboard sensors. And many of them also had their own eyesightings, as well, of these objects. Now, that was our personal, firsthand experience at the time. Since then, as I've engaged this topic, others have reached out to me to share their experiences both on the military side as well as the commercial aviation side. On the military aviation side, veterans that have recently got out have shared their stories and have expressed how the objects we are seeing in 2014 and 2015 continued all the way to 2019, 2020, and beyond. And so it became a generational issue for naval aviators on the Eastern Seaboard. This was something we were briefing to new students. This is something that was included in the notice to airmen to ensure that there was no accidents. And now with commercial aviators, they are reaching out because they're having somewhat similar experiences as our military brothers and sisters, but they do not have any reporting system that they can send this to. 47:55 Cmdr. David Fravor: It's actually, it's a travesty that we don't have a system to correlate this and actually investigate. You know, so if you took the east coast, there's coastal radars out there that monitor our air defense identification zone. Out to 200 miles, they can track these. So when you see them, they could actually go and pull that data and get maneuvering. And instead of just having the airplanes, there's other data sources out there. And I've talked to other government officials on this. You need a centrally located repository that these reports go to. So if you just stuck it in DOD, you wouldn't get anything out of the Intelligence Committee because they have a tendency not to talk. But if you had a central location where these reports are coming in, not just military, but also commercial aviation, because there's a lot of that going on, especially if you talk to anyone that flies from here to Hawaii, over the Pacific they see odd lights. So I think you need to develop something that allows you a central point to collect the data in order to investigate. 51:20 Rep. Robert Garcia (D-CA): Mr. Grusch, finally, do you believe that our government is in possession of UAPs? David Grusch: Absolutely, based on interviewing over 40 witnesses over four years. Rep. Robert Garcia (D-CA): And where? David Grusch: I know the exact locations and those locations were provided to the Inspector General, and some of which to the intelligence committees, I actually had the people with the firsthand knowledge provide a protected disclosure to the Inspector General 52:15 Rep. Tim Burchett (R-TN): Mr. Graves. Again, I'd like to know, how do you know that these were not our aircraft? Ryan Graves: Some of the behaviors that we saw in a working area. We would see these objects being at 0.0 Mach, that's zero airspeed over certain pieces of the ground. So what that means, just like a river, if you throw a bobber in, it's gonna float downstream. These objects were staying completely stationary in category four hurricane winds. The same objects would then accelerate to supersonic speeds 1.1-1.2 Mach, and they would do so in very erratic and quick behaviors that we don't -- I don't -- have an explanation for. 55:50 Rep. Tim Burchett (R-TN): Mr. Fravor, do you believe that you witnessed an additional object under the water in relation to your encounter? Cmdr. David Fravor: I will say we did not see an object. There was something there to cause the whitewater and when we turned around, it was gone. So there was something there that obviously moved. Rep. Tim Burchett (R-TN): Okay, it was not the same object, though, that you were looking at, correct? Cmdr. David Fravor: No, we actually joked that the tic tac was communicating with something when we came back, because the whitewater disappeared. 56:15 Rep. Tim Burchett (R-TN): We were, in another instance, told about the capabilities of jamming when there were some people chasing some of these objects. Did you experience any of that jamming, or interrupting your radar or weapon system? Cmdr. David Fravor: My crew that launched, after we landed, experienced significant jamming to the APG 73 radar, which was what we had on board, which is a mechanically scan, very high end system, prior to APG 79. And yes, it did pretty much everything you could do range, velocity, aspect, and then it hit the lock and the targeting pod is passive. That's when we're able to get the video on. Rep. Tim Burchett (R-TN): I'm about to run out of time, but are you aware of any of our enemies that have that capability? Cmdr. David Fravor: No, no. 57:40 Rep. Jaime Raskin (D-MD): You've identified these as taking place on the East Coast. Is it just on the East Coast where these encounters have been reported? Ryan Graves: No. Since the events initially occurred, I've learned that the objects have been detected, essentially where all Navy operations are being conducted across the world. And that's from the All-domain Anomaly Resolution Office reporting. 58:50 Rep. Jaime Raskin (D-MD): Are there common characteristics to the UAPs that have been sighted by different pilots? And can you describe what the convergence of descriptions is? Ryan Graves: Certainly. We were primarily seeing dark gray or black cubes inside of a clear sphere. Rep. Jaime Raskin (D-MD): I'm sorry, dark gray or black cubes? Ryan Graves: Yes, inside of a clear sphere where the apex or tips of the cube were touching the inside of that sphere. And that was primarily what was being reported when we were able to gain a visual tally of these objects. That occurred over almost eight years, and as far as I know, is still occurring. 59:45 Ryan Graves: I think we need both transparency and the reporting. We have the reporting, but we need to make sure that information can be propagated to commercial aviation as well as the rest of the populace. 1:05:00 Ryan Graves: In the 2003 timeframe, a large group of Boeing contractors were operating near one of the launch facilities at Vandenberg Air Force Base when they observed a very large, 100-yard-sided red square approach the base from the ocean and hover at low altitude over one of the launch facilities. This object remained for about 45 seconds or so before darting off over the mountains. There was a similar event within 24 hours later in the evening. This was a morning event, I believe, 8:45 in the morning. Later in the evening, post sunset, there were reports of other sightings on base including some aggressive behaviors. These objects were approaching some of the security guards at rapid speeds before darting off, and this is information that was received through one of the witnesses that have approached me at Americans for Safe Aerospace. 1:06:15 Ryan Graves: I have not seen what they've described. This object was estimated to be almost the size of a football field, and I have not seen anything personally that large. 1:07:05 Rep. Anna Paulina Luna (R-FL): With the FAA, to your understanding, pilots that are seeing this, commercial airline pilots, are they receiving cease and desist letters from corporations for coming forward with information in regards to safety for potential air airline passengers? Ryan Graves: I have been made privy to conversations with commercial aviators who have received cease and desist orders. Rep. Anna Paulina Luna (R-FL): So the American public should know that corporations are putting their own reputations ahead of the safety of the American people. Would you agree with that statement? Ryan Graves: It appears so. 1:08:15 Rep. Jared Moskowitz (D-FL): So what about G forces? Let's talk about G forces in those vehicles. Could a human survive those G forces with known technology today? Cmdr. David Fravor: No, not for the acceleration rates that we observed. 1:08:45 Cmdr. David Fravor: So we got within a half mile of the tic tac, which people say that's pretty far, but in airplanes that's actually relatively close. Now it was perfectly white, smooth, no windows, although when we did take the original FLIR video that is out there, when you put it on a big screen it actually had two little objects that came out of the bottom of it. But other than that, no windows, no seams, no nothing. 1:09:05 Rep. Jared Moskowitz (D-FL): Mr. Grusch, as a result of your previous government work have you met with people with direct knowledge or have direct knowledge yourself of non-human origin craft? David Grusch: Yes, I personally interviewed those individuals. 1:09:40 Rep. Jared Moskowitz (D-FL): Do you have knowledge or do you have reason to believe that there are programs in the advanced tech space that are unsanctioned? David Grusch: Yes, I do. Rep. Jared Moskowitz (D-FL): Okay. And when you say that they're above congressional oversight, what do you mean? David Grusch: Complicated question. So there's some, I would call it abuse here. So congressional oversight of conventional Special Special Access Programs, and I'll use Title X, so DOD, as an example. So 10 US Code section 119 discusses congressional oversight of SAPS, discusses the Deputy Secretary of Defense's ability to waive congressional reporting. However, the Gang of Eight is at least supposed to be notified if a waived or waived bigoted unacknowledged SAP is created. That's Public Law. Rep. Jared Moskowitz (D-FL): I don't want to cut you off, but how does a program like that get funded? David Grusch: I will give you generalities. I can get very specific in a closed session, but misappropriation of funds. Rep. Jared Moskowitz (D-FL): Does that mean that there is money in the budget that is set to go to a program but it doesn't and it goes to something else? David Grusch: Yes, have specific knowledge of that. Yep. Rep. Jared Moskowitz (D-FL): Do you think US corporations are overcharging for certain tech they're selling to the US government and that additional money is going to programs? David Grusch: Correct, through something called IRAD. 1:12:45 Rep. Virginia Foxx (R-VA): Mr. Grusch, in your sworn testimony you state that the United States government has retrieved supposedly extraterrestrial spacecraft and other UAP related artifacts. You go so far as to state that the US is in possession of "non human spacecraft" and that some of these artifacts have circulated with defense contractors. Several other former military and intelligence officials have come forward with similar allegations albeit in non-public setting. However, Dr. Sean Kirkpatrick, the Director of AARO, previously testified before Congress that there has been and I quote, "no credible evidence" thus far of extraterrestrial act activity or "off world technology" brought to the attention of the office. To your knowledge, is that statement correct? David Grusch: It's not accurate. I believe Dr. Kirkpatrick mentioned he had about 30 individuals that have come to AARO thus far. A few of those individuals have also come to AARO that I also interviewed and I know what they provided Dr. Kirkpatrick and their team. I was able to evaluate -- Rep. Virginia Foxx (R-VA): Okay, I need to go on. David Grusch: Sure. 1:21:25 Rep. Tim Burchett (R-TN): Has the US government become aware of actual evidence of extraterrestrial or otherwise unexplained forms of intelligence? And if so, when do you think this first occurred? David Grusch: I like to use the term non-human, I don't like to denote origin, it keeps the aperture open scientifically. Certainly, like I've just discussed publicly, previously, the 1930s. 1:21:45 Rep. Tim Burchett (R-TN): Okay, can you give me the names and titles of the people with direct, first-hand knowledge and access to some of these crash retrieval programs and maybe which facilities, military bases that the recovered material would be in? And I know a lot of Congress talked about, we're gonna go to area 51. And, you know, there's nothing there anymore anyway, it's just you know, we move like a glacier. And as soon as we announce it, I'm sure the moving vans would pull up, but please. David Grusch: I can't discuss that publicly. But I did provide that information both to the Intel committees and the Inspector General. Rep. Tim Burchett (R-TN): And we could get that in the SCIF, if we were allowed to get in a SCIF with you? Would that be probably what you would think? David Grusch: Sure, if you had the appropriate accesses, yeah. 1:22:30 Rep. Tim Burchett (R-TN): What Special Access Programs cover this information? And how is it possible that they have evaded oversight for so long? David Grusch: I do know the names, once again, I can't discuss that publicly. And how they've evaded oversight in a closed setting I could tell you this specific tradecraft used. Rep. Tim Burchett (R-TN): Alright. 1:22:50 Rep. Tim Burchett (R-TN): When did you think those programs began and who authorized them? David Grusch: I do know a lot of that information, but that's something I can't discuss publicly because of sensitivities Rep. Tim Burchett (R-TN): Alright. 1:24:05 Rep. Tim Burchett (R-TN): Title 10 and title 50 authorization, they seem to say they're inefficient. So who gets to decide this, in your opinion, in the past? David Grusch: It's a group of career senior executive officials. Rep. Tim Burchett (R-TN): Okay. Are they government officials? David Grusch: Both in and out of government and that's about as far I'll go there. Rep. Tim Burchett (R-TN): Well, that leads to my next question, which private corporations are directly involved in this program? How much taxpayer money has been invested in these programs? David Grusch: Yeah, I don't know the specific metrics towards the end of your question. The specific corporations I did provide to the committees in specific divisions, and I spent 11 and a half hours with both Intel committees. 1:25:30 Rep. Tim Burchett (R-TN): Has there been an active US government disinformation campaign to deny the existence of Unidentified Aerial Phenomena? And if so, why? David Grusch: I can't go beyond what I've already exposed publicly about that. Rep. Tim Burchett (R-TN): Okay, I've been told to ask you what that is and how to get it in the record. Rep. Anna Paulina Luna (R-FL): What have you stated publicly in your interviews, for the Congressional Record? David Grusch: If you reference my NewsNation interview, I talk about a multi-decade campaign to disenfranchise public interest basically. 1:28:00 Rep. Alexandria Ocasio-Cortez (D-NY): When it comes to notification that you had mentioned about IRAD programs, we have seen defense contractors abuse their contracts before through this committee. I have seen it personally, and I have also seen the notification requirements to Congress abused. I am wondering, one of the loopholes that we see in the law is that there is, at least from my vantage point, depending on what we're seeing, is that there are no actual definitions or requirements for notification, are there? What methods of notification did you observe? When they say they notified Congress, how did they do that? Do you have insight into that? David Grusch: For certain IRAD activities....I can only think of ones conventional in nature. Sometimes they flow through certain out of say SAP programs that have cognisant authority over the Air Force or something. And those are congressionally reported compartments, but IRAD is literally internal to the contractor. So as long as it's money, either profits, private investment, etc, they can do whatever they want. Rep. Alexandria Ocasio-Cortez (D-NY): To put a finer point on it, when there is a requirement for any agency or company to notify Congress, do they contact the chairman of a committee, do they get them on the phone specifically, is this through an email to hypothetically a dead email box? David Grusch: A lot of it comes through what they call the PPR, Periodic Program Review process. If it's a SAP or Controlled Access Program equity, and then those go to the specific committees. 1:30:40 Rep. Alexandria Ocasio-Cortez (D-NY): For the record, if you were me, where would you look? Titles, programs, departments, regions? If you could just name anything. And I put that as an open question to the three of you. David Grusch: I'd be happy to give you that in a closed environment. I can tell you specifically. 1:35:40 Cmdr. David Fravor: Things are over-classified. I know for a fact the video or the pictures that came out in the 2020 report that had the stuff off the east coast, they were taken with an iPhone, off the east coast. A buddy of mine was one of the senior people there and he said they originally classified a TSS CI, and my question to him was what's TSS CI about these? They're an iPhone, right, literally off the vacates, that's not TSS CI. So they're over classified, and as soon as they do that, they go into the vault, and then you all have to look for them. 1:37:20 Rep. Eric Burlison (R-MO): Has any of the activity been aggressive, been hostile in your reports? David Grusch: I know of multiple colleagues of mine that got physically injured. Rep. Eric Burlison (R-MO): By UAPs, or by people within the federal government? So there has been activity by alien or non-human technology and or beings that has caused harm to humans? David Grusch: I can't get into the specifics in an open environment, but at least the activity that I personally witnessed, and I have to be very careful here, because they tell you never to acknowledge tradecraft, right. So what I personally witnessed, myself and my wife, was very disturbing. 1:38:20 Rep. Eric Burlison (R-MO): You've said that the US has intact spacecraft. You said that the government has alien bodies or alien species. Have you seen the spacecraft? David Grusch: I have to be careful to describe what I've seen firsthand and not in this environment. But I could answer that question behind closed doors. Rep. Eric Burlison (R-MO): Have you seen any of the bodies? David Grusch: That's something I've not witnessed myself. 1:40:45 Rep. Eric Burlison (R-MO): These aircraft, have they been identified that they are being produced by domestic military contractors? Is there any evidence that that's what's being recovered? David Grusch: Not to my knowledge. Plus the recoveries predate a lot of our advanced programs. 1:48:05 David Grusch: I?ve actually never seen anything personal, believe it or not. 1:51:00 Rep. Nancy Mace (R-SC): If you believe we have crashed craft, stated earlier, do we have the bodies of the pilots who piloted this craft? David Grusch: As I've stated publicly already in my NewsNation interview, biologics came with some of these recoveries. 1:51:15 Rep. Nancy Mace (R-SC): Were they human or non human biologics? David Grusch: Non human and that was the assessment of people with direct knowledge on the program I talked to that are currently still on the program. Rep. Nancy Mace (R-SC): And was this documentary evidence video, photos, eyewitness like how would that be determined? David Grusch: The specific documentation, I would have to talk to you in a SCIF about that. 1:53:10 Rep. Nick Langworthy (R-NY): Commander Fravor, we've all seen the floating tic tac video that you engage with on November 14, 2004. Can you briefly talk about why you were off the coast of San Diego that day? Cmdr. David Fravor: Yeah, we were at a work up with all the battle groups. So we integrate the ships with the carrier, the airway with the carrier and we start working. So we were doing an air-to-air defense to hone not only our skills, but those of the USS Princeton, and when they had been tracking him for two weeks. The problem was, there were never manned aircraft airborne when they were tracking them. And this was the first day and unfortunately, we were the ones airborne and went and saw it. Rep. Nick Langworthy (R-NY): Do you remember the weather that day? It was a cloudy or windy or anything out of the ordinary on the Pacific coast. Cmdr. David Fravor: If you're familiar with San Diego, it was a perfect day. Light winds, no whitecaps, clear skies, not a cloud. For flying, it was the best. Rep. Nick Langworthy (R-NY): Now, is it true that you saw, in your words, a 40 foot flying tic tac shaped object? Cmdr. David Fravor: That's correct. Or for some people that can't know what a Tic Tac is, it's a giant flying propane tank. Rep. Nick Langworthy (R-NY): Did this object come up on radar or interfere with your radar or the USS Princeton? Cmdr. David Fravor: The Princeton tracked it, the Nimitz tracked it, the E2 tracked it. We never saw it on our radars, our fire control radars never picked it up. The other airplane that took the video did get it on a radar as soon as it tried to lock in to jam the radar, spit the lock and he's rapidly switched over to the targeting pod which you can do in the F/A 18 Rep. Nick Langworthy (R-NY): From what you saw that day and what you've seen on video. Did you see any source of propulsion from the flying object including on any potential thermal scans from your aircraft? Cmdr. David Fravor: No, there is none. There is no IR plume coming out. And Chad who took the video went through all the EO, which is black and white TV and the IR modes, and there's no visible signs of reflection. It's just sitting in space at 20,000 feet. Rep. Nick Langworthy (R-NY): In your career. Have you ever seen a propulsion system that creates no thermal exhaust? Cmdr. David Fravor: No. Rep. Nick Langworthy (R-NY): Can you describe how the aircraft maneuvered? Cmdr. David Fravor: Abruptly, very determinant. It knew exactly what it was doing. It was aware of our presence. And it had acceleration rates, I mean, it went from zero to matching our speed and no time at all. Rep. Nick Langworthy (R-NY): Now if the fastest plane on Earth was trained to do these maneuvers that you saw, would it be capable of doing that? Cmdr. David Fravor: No, not even close Rep. Nick Langworthy (R-NY): Just to confirm, this object had no wings, correct? Cmdr. David Fravor: No wings. Rep. Nick Langworthy (R-NY): Now the aircraft that you were flying, was it armed? Cmdr. David Fravor: No, never felt threatened at all. Rep. Nick Langworthy (R-NY): If the aircraft was armed, do you believe that your aircraft or any aircraft in possession of the United States could have shot the tic tac down? Cmdr. David Fravor: I'd say no. Just on the performance, it would have just left in a split second. 1:58:10 Rep. Andy Ogles (R-TN): Is there any indication that these UAPs could be essentially collecting reconnaissance information? Mr. Graves? Ryan Graves: Yes. Rep. Andy Ogles (R-TN): Mr. Grusch? David Grusch: Fair assessment. Rep. Andy Ogles (R-TN): Mr. Fravor? Cmdr. David Fravor: Very possible. 1:59:05 Rep. Andy Ogles (R-TN): Mr. Graves and Fravor, in the event that your encounters had become hostile, would you have had the capability to defend yourself, your crew, your aircraft? Ryan Graves: Absolutely not. Cmdr. David Fravor: No. 2:00:55 Rep. Tim Burchett (R-TN): I might have asked this before, but I want to make sure. Do you have any personal knowledge of someone who's possibly been injured working on legacy UAP reverse engineering? David Grusch: Yes. Rep. Tim Burchett (R-TN): Okay. How were they injured? Was it something like a radioactive type situation or something we didn't understand? I've heard people talk about Havana syndrome type incidences. What what was your recollection of that? David Grusch: I can't get into specifics, but you could imagine assessing an unknown unknown, there's a lot of potentialities you can't fully prepare for. 2:02:10 Rep. Tim Burchett (R-TN): Are you aware of any individuals that are participating in reverse engineering programs for non terrestrial craft? David Grusch: Personally, yes. Rep. Tim Burchett (R-TN): Do you know any that would be willing to testify if there were protections for them? David Grusch: Certainly closed door, and assurances that breaking their NDA, they're not going to get administratively punished. 2:03:45 Rep. Anna Paulina Luna (R-FL): Referring to your news nation interview, you had referenced specific treaties between governments. Article III of the nuclear arms treaty with Russia identifies UAPs. It specifically mentions them. To your knowledge. Are there safety measures in place with foreign governments or other superpowers to avoid an escalatory situation in the event that a UAP malevolent event occurs? David Grusch: Yeah, you're referring to an actual public treaty in the UN register. It's funny you mentioned that, the agreement on measures to reduce the risk of outbreak of a nuclear war signed in 1971, unclassified treaty publicly available. And if you cite the George Washington University national security archives, you will find the declassified, in 2013, specific provisions in this specific Red Line Flass message traffic with the specific codes pursuant to Article Three and also situation two, which is in the the previously classified NSA archive. What I would recommend and I tried to get access, but I got a wall of silence at the White House, was the specific incidents when those message traffic was used, I think some scholarship on that would open the door to a further investigation using those publicly available information. 2:05:20 David Grusch: I have concerns, based on the interviews I conducted under my official duties, of potential violations of the Federal Acquisition Regulations, the FAR. 2:06:10 Rep. Jaime Raskin (D-MD): What was your general attitude or perspective on the UFO discussion before that happened? Cmdr. David Fravor: I never felt that we were alone with all the planets out there. But I wasn't a UFO person. I wasn't, I wasn't watching History Channel and MUFON and all that. Rep. Jaime Raskin (D-MD): And have you had any experiences or encounters since that happened? Cmdr. David Fravor: No. Rep. Jaime Raskin (D-MD): And so, have you formed any general conclusions about what you think you experienced then? Cmdr. David Fravor: Yes, I think what we experienced was, like I said, well beyond the material science and the capabilities that we had at the time, that we have currently, or that we're going to have in the next 10 to 20 years. 2:06:55 Rep. Jaime Raskin (D-MD): You've been able to answer in great detail on certain questions, and then other things you say you're not able to respond to. Can you just explain where you're drawing the line? What's the basis for that? David Grusch: Yeah, based on my DOPSR security review and what they've determined that is unclassified. Rep. Jaime Raskin (D-MD): I see, so you're answering any questions that just call upon your knowledge of unclassified questions, but anything that relates to classified matters you're not commenting on in this context? David Grusch: In an open session, but happy to participate in a closed session at the right level. 2:08:15 Ryan Graves: Certainly I think the most vivid sighting of that would have been near mid air that we had at the entrance to our working area. One of these objects was completely stationary at the exact entrance to our working areas, not only geographically but also at altitude. So it was right where all the jets are going, essentially, on the Eastern Seaboard. The two aircraft flew within about 50 feet of the object and that was a very close visual sighting. Rep. Jaime Raskin (D-MD): And you were in one of the aircraft. Ryan Graves: I was not. I was there when the pilot landed. He canceled the mission after. I was there. He was in the ready room with all his gear on with his mouth open. And I asked him what the problem was and he said he almost hit one of those darn things. Rep. Jaime Raskin (D-MD): He said he was 50 feet away from it? Ryan Graves: Yes, sir. Rep. Jaime Raskin (D-MD): And his description of the object was consistent with the description you gave us before? Ryan Graves: A dark gray or black cube inside of a clear sphere. Rep. Jaime Raskin (D-MD): Inside of a clear sphere. With no self evident propulsion system. Ryan Graves:: No wings, no IR energy coming off of the vehicle, nothing tethering it to the ground. And that was primarily what we're experiencing out there. April 19, 2023 Senate Committee on Armed Services Witnesses: , Director, All-domain Anomaly Resolution Office Clips 2:00:50 Dr. Sean Kirkpatrick: The AARO team of more than three dozen experts is organized around four functional areas: operations, scientific research, integrated analysis, and strategic communications. 2:01:25 Dr. Sean Kirkpatrick: Consistent with legislative direction, AARO is also carefully reviewing and researching the US government's UAP-related historical record. 2:02:05 Dr. Sean Kirkpatrick: AARO is the culmination of decades of DOD, intelligence community, and congressionally directed efforts to successfully resolve UAP encountered first and foremost by US military personnel, specifically navy and air force pilots. 2:03:15 Dr. Sean Kirkpatrick: However, it would be naive to believe that the resolution of all UAP can be solely accomplished by the DOD and IC alone. We will need to prioritize collection and leverage authorities for monitoring all domains within the continental United States. AARO's ultimate success will require partnerships with the inner agency, industry partners, academia and the scientific community, as well as the public. 2:04:15 Dr. Sean Kirkpatrick: I want to underscore today that only a very small percentage of UAP reports display signatures that could reasonably be described as anomalous. The majority of unidentified objects reported to AARO demonstrate mundane characteristics of balloons, unmanned aerial systems, clutter, natural phenomena, or other readily explainable sources. While a large number of cases in our holdings remain technically unresolved, this is primarily due to a lack of data associated with those cases. Without sufficient data, we are unable to reach defendable conclusions that meet the high scientific standards we set for resolution, and I will not close a case that I cannot defend the conclusions of. 2:06:00 Dr. Sean Kirkpatrick: AARO is a member of the department's support to the administration's Tiger Team effort to deal with stratospheric objects such as the PRC high altitude balloon. When previously unknown objects are successfully identified, it is AARO's role to quickly and efficiently hand off such readily explainable objects to the intelligence, law enforcement, or operational safety communities for further analysis and appropriate action. In other words, AARO?s mission is to turn UAP into SEP, Somebody Else's Problem. 2:07:30 Dr. Sean Kirkpatrick: I should also state clearly for the record that in our research, AARO has found no credible evidence thus far of extraterrestrial activity, offworld technology, or objects that defy the known laws of physics. In the event sufficient scientific data were ever obtained that a UAP encountered can only be explained by extraterrestrial origin, we are committed to working with our interagency partners at NASA to appropriately inform [the] U.S. government's leadership of its findings. For those few cases that have leaked to the public previously and subsequently commented on by the US government, I encourage those who hold alternative theories or views to submit your research to credible peer reviewed scientific journals. AARO is working very hard to do the same. That is how science works, not by blog or social media. 2:13:20 Dr. Sean Kirkpatrick: How are we going to get more data? We are working with the joint staff to issue guidance to all the services and commands that will then establish what are the reporting requirements, the timeliness, and all of the data that is required to be delivered to us and retained from all of the associated sensors. That historically hasn't been the case and it's been happenstance that data has been collected. 2:17:20 Dr. Sean Kirkpatrick: As of this week we are tracking over a total of 650 cases. 2:17:45 Dr. Sean Kirkpatrick: Let me walk everyone through what our analytic process looks like. We have essentially a five step process. We get our cases in with all the data, we create a case for that event. My team does a preliminary scrub of all of those cases as they come in, just to sort out, do we have any information that says this is in one of those likely categories? It's likely a balloon, it's likely a bird, it's likely some other object, or we don't know. Then we prioritize those based off of where they are. Are they attached to a national security area? Does it show some anomalous phenomenology that is of interest? If it's just a spherical thing that's floating around with the wind and it has no payload on it, that's going to be less important than something that has a payload on it, which will be less important than something that's maneuvering. So there's sort of a hierarchy of just binning the priorities, because we can't do all of them at once. Once we do that and we prioritize them, we take that package of data in that case and I have set up two teams, think of this as a Red Team Blue Team, or competitive analysis. I have an intelligence community team made up of intelligence analysts and I have an S&T team made up of scientists and engineers, and the people that actually build a lot of these sensors are physicists, because you know, if you're a physicist, you can do anything. But they're not associated with the intel community, they're not intel officers. So they they look at this through the lens of the sensor, of what the data says. We give that package to both teams. The intelligence community is going to look at it through the lens of the intelligence record, and what they assess, and their intel tradecraft, which they have very specific rules and regulations on how they do that. The scientific community, the technical community is going to look at it through the lens of "What is the data telling me? What is the sensor doing? What would I expect a sensor response to be?" and back that out. Those two groups give us their answers. We then adjudicate. If they agree, then I am more likely to close that case, if they agree on what it is. If they disagree, we will have an adjudication. We'll bring them together, we'll take a look at the differences, we'll adjudicate. Why do you say one thing and you say another? We will then come to a case recommendation that will get written up by my team. That then goes to a Senior Technical Advisory Group, which is outside of all of those people, made up of senior technical folks and intel analysts and operators retired out of the community. And they essentially peer review what that case recommendation is. They write their recommendations, that comes back to me, I review it, we make a determination, and I'll sign off one way or the other, and then that will go out as the case determination. Once we have an approved web portal to hang the unclassified stuff, we will downgrade and declassify things and put it out there. In the meantime, we're putting a lot of these on our classified web portal where we can then collaborate with the rest of the community so they can see what's going on. In a nutshell, that is the process. 2:27:10 Dr. Sean Kirkpatrick: There are emerging capabilities out there that in many instances, Russia and China, China in particular, are on par or ahead of us in some areas. So previously, I used to be the Defense Department's intelligence officer for science and technical intelligence. That was our job to look for, what does all that look like? And then my last several years of course, in Space Command, doing space. The adversary is not waiting. They are advancing and they're advancing quickly. If I were to put on some of my old hats, I would tell you, they are less risk averse at technical advancement than we are. They are just willing to try things and see if it works. Are there capabilities that could be employed against us in both an ISR and a weapons fashion? Absolutely. Do I have evidence that they're doing it in these cases? No, but I have concerning indicators. 2:43:45 Dr. Sean Kirkpatrick: So the vision is, at one point, at some point in the future, you should not need an AARO. If I'm successful in what I'm doing, we should be able to normalize everything that we're doing into existing processes, functions, agencies and organizations, and make that part of their mission and their role. Right now the niche that we form is really going after the unknowns. I think you articulated it early on, this is a hunt mission for what might somebody be doing in our backyard that we don't know about? That is what we are doing, but at some point, we should be able to normalize that. That's why it's so important the work we're doing with joint staff to normalize that into DoD policy and guidance. We are bringing in all of our interagency partners. So NASA is providing a liaison for us, I have FBI liaison, I have OSI liaison, I have service liaisons, half of my staff come from the [Intelligence Community], half of my staff come from other scientific and technical backgrounds, I have DOE. So what we're trying to do is ensure, again, as I make UAP into SEP they get handed off to the people that that is their mission to go do, so that we aren't duplicating that. I'm not going to go chase the Chinese high altitude balloon, for example. That's not my job. It's not an unknown, and it's not anomalous anymore. Now it goes over to them. May 17, 2022 House Permanent Select Committee on Intelligence, Subcommittee on Counterterrorism, Counterintelligence, and Counterproliferation Witnesses: , Deputy Director, Office of Naval Intelligence , Under Secretary of Defense Intelligence and Security, Department of Defense Clips 10:00 Ronald Moultrie: The NDAA for fiscal year 2022 has helped us to establish a dedicated office to oversee processes and procedures for the timely collection, processing, analysis, and reporting of UAP related data. 10:15 Ronald Moultrie: What are UAP? Put simply, UAP are airborne objects that, when encountered, cannot be immediately identified. 10:25 Ronald Moultrie: It is the department's contention that by combining appropriately structured, collected data with rigorous scientific analysis, any object that we encounter can likely be isolated, characterized, identified and if necessary, mitigated. 10:40 Ronald Moultrie: We know that our service members have encountered unidentified aerial phenomenon. And because UAPs pose potential flight safety and general security risks, we are committed to a focused effort to determine their origins. Our effort will include the thorough examination of adversarial platforms and potential breakthrough technologies, US government or commercial platforms, Allied or partner systems, and other natural phenomena. 11:15 Ronald Moultrie: We also understand that there has been a cultural stigma surrounding UAP. Our goal is to eliminate the stigma by fully incorporating our operators and mission personnel into a standardized data gathering process. We believe that making UAP reporting a mission imperative will be instrumental to the effort's success. 11:45 Ronald Moultrie: To optimize the department's UAP work, we are establishing an office within the Office of the Secretary of Defense. That office's function is clear: to facilitate the identification of previously unknown or unidentified airborne objects in a methodical, logical, and standardized manner. 13:50 Scott Bray: Since the early 2000s, we have seen an increasing number of unauthorized and or unidentified aircraft or objects in military controlled training areas and training ranges and other designated airspace. Reports of sightings are frequent and continuing. We attribute this increase in reporting to a number of factors, including our work to destigmatize reporting, an increase in the number of new systems such as quad copters and unmanned aerial systems that are in our airspace, identification of what we can classify as clutter (mylar balloons and other types of of air trash), and improvements in the capabilities of our various sensors to detect things in our airspace. 14:50 Scott Bray: The basic issues, then and now, are twofold. First, incursions in our training ranges by unidentified objects represent serious hazards to safety of flight. In every aspect of naval aviation, safety of our air crews is paramount. Second, intrusions by unknown aircraft or objects pose potential threats to the security of our operations. Our aviators train as they would fight, so any intrusions that may compromise the security of our operations by revealing our capabilities, our tactics, techniques or procedures are of great concern to the Navy and Department of Defense. 16:40 Scott Bray: The direct result of those efforts has been increased reporting with increased opportunities to focus a number of sensors on any objects. The message is now clear: if you see something, you need to report it. And the message has been received. 18:55 Scott Bray: As detailed in the ODNI report, if and when individual UAP incidents are resolved, they likely fall into one of five potential explanatory categories: airborne clutter, natural atmospheric phenomena, US government or US industry developmental programs, foreign adversary systems, or another bin that allows for a holding bin of difficult cases, and for the possibility of surprise and potential scientific discovery. 22:20 Scott Bray: If UAP do indeed represent a potential threat to our security then the capabilities, systems, processes and sources we use to observe, record, study, or analyze these phenomena need to be classified at appropriate levels. We do not want, we do not want potential adversaries to know exactly what we're able to see or understand or how we come to the conclusions we make. Therefore, public disclosures must be carefully considered on a case by case basis. 23:35 Rep André Carson (D-IN): This is the third version of this task force and, to be frank, one of Congress's concerns is that the executive branch, in administrations of both parties, has been sweeping concerns about UAPs under the rug by focusing on events that can be explained and avoiding events that cannot be explained. What can you say to give the American people confidence that you aren't just focusing our attention on low hanging fruit with easy explanations? Ronald Moultrie: Congressman, I'll start and then Mr. Bray, please feel free to weigh in. So the way that we're approaching it is with a more thorough, standardized methodology than what we have in the past. First and foremost, the Secretary Defense is chartering this effort, this is not someone lower in the Department of Defense, and he is assigned that task to the Office of Secretary of Defense's Under Secretary for Intelligence Security, that's me, because I'm responsible for looking at intelligence matters, I'm responsible for security matters, and this is potentially both. So we're concerning ourselves with the safety of our personnel, the safety of our installations and bases. There's no other higher power than what we have in actually getting after this. And as you have stated, we have been assigned that task to actually stand up an office, the AOIMSG, which I believe the name server will likely change, but we have moved forward in terms of moving to establish that office. We have, as of this week, picked the director for that effort, a very established and accomplished individual. 42:00 Scott Bray: I would say that we're not aware of any adversary that can move an object without discernible means of propulsion. The question then becomes, in many of these cases where we don't have a discernible means of propulsion in the data that we have, in some cases, there are likely sensor artifacts that that may be hiding some of that, there's certainly some degree of something that looks like signature management that we have seen from some of these UAP. But I would caution, I would simply say that there are a number of other events in which we do not have an explanation. There are a small handful in which there are flight characteristics or signature management that we can't explain with the data that we have. 43:40 Rep. Adam Schiff (D-CA): With respect to the second two videos showing the small triangles, the hypothesis is that those are commercial drones that because of the use of night vision goggles appear like triangles, is that the operating assessment? Scott Bray: Some type of drone, some type of unmanned aerial system, and it is simply that that light source resolves itself through the night vision goggles onto the SLR camera as a triangle. 47:55 Scott Bray: Allies have seen these, China has established its own version of the UAP task force. So clearly a number of countries have observations of things in the airspace that they can identify. Rep. Brad Wenstrup (R-OH): And do we share data with some, with all? Are they sharing with us? Scott Bray: We share data with some and some share data with us. Rep. Brad Wenstrup (R-OH): But not necessarily all that have publicly reported something? Scott Bray: That's correct. 52:25 Scott Bray: When I say we can't explain, I mean, exactly as you describe there, that there's a lot of information, like the video that we showed, in which there's simply too little data to create a reasonable explanation. There are a small handful of cases in which we have more data that our analysis simply hasn't been able to fully pull together a picture of what happened. Those are the cases where we talked about where we see some indications of flight characteristics or signature management that are not what we had expected. When it comes to material that we have, we have no material. We have detected no emanations within the UAP task force that would suggest it's anything non-terrestrial in origin. 59:35 Rep. Raja Krishnamoorthi (D-IL): There have been no collisions between any US assets and one of these UAPs, correct? Scott Bray: We have not had a collision, we've had at least 11 near misses though. 59:55 Rep. Raja Krishnamoorthi (D-IL): And there's been no attempt, there's no communications, or any kind of communication signals that emanate from those objects that we've detected, correct? Scott Bray: That's correct. Rep. Raja Krishnamoorthi (D-IL): And have we attempted to communicate with those objects? Scott Bray: No. Rep. Raja Krishnamoorthi (D-IL): So we don't we don't even put out an alert saying, you know, "U.S., identify yourself, you are within our flight path," or something like that? Scott Bray: We haven't said anything like that. We've not put anything out like that, generally speaking. For example, in the video that we showed earlier, it appears to be something that is unmanned, appears to be something that may or may not be in controlled flight, and so we've not attempted any communication with that. 1:00:55 Rep. Raja Krishnamoorthi (D-IL): And I assume we've never discharged any armaments against a UAP, correct? Scott Bray: That's correct. 1:01:05 Rep. Raja Krishnamoorthi (D-IL): How about wreckage? Have we come across any wreckage of any kind of object that has now been examined by you? Scott Bray: The UAP task force doesn't have any wreckage that isn't explainable, that isn't consistent with being of terrestrial origin. 1:01:20 Rep. Raja Krishnamoorthi (D-IL): Do we have any sensors underwater to detect on submerged UAPs, anything that is in the ocean or in the seas? Ronald Moultrie: So I think that would be more properly addressed in a closed session. 1:05:30 Ronald Moultrie: So one of the concerns that we have is that there are a lot of individuals and groups that are putting information out there that that could be considered to be somewhat self serving. We're trying to do what's in the best interests of, one, the Department of Defense, and then two, what's in the best interest of the public, to ensure that we can put factually based information back into the mainstream and back into the bloodstream of the reporting media that we have, so people understand what's there. It's important because we are attempting, as this hearing has drawn out to understand, one, what may just be natural phenomenon, two, what may be sensor phenomenology or things that were happening with sensors, three, what may be legitimate counterintelligence threats to places that we have or bases or installations, or security threats to our platforms. And anything that diverts us off of what we have with the resources that have been allocated to us, sends us off in the spurious chases and hunts that are just not helpful. They also contribute to the undermining of the confidence that the Congress and the American people have that we are trying to get to the root cause of what's happening here, report on that, and then feed that back into our national security apparatus so we are able to protect the American people and our allies. So it is harmful, it is hurtful, but hopefully, if we get more information out there, we'll start to lessen the impact of some of those spurious reports. Rep. Darin LaHood (R-IL): So just taking that a step further, that misinformation, false narratives, manufactured, what are the consequences? Are there legal consequences? Are there examples that you can give us where people have been held accountable by this misinformation or disinformation? Ronald Moultrie: I can't give you any examples where somebody has been legally held liable for putting something out there. Rep. Darin LaHood (R-IL): Well, what's the deterrent from people engaging in this activity? Ronald Moultrie: I don't know. I don't have that answer. That's something that [we] welcome the dialogue with Congress to talk about that with the members who helped legislate those laws to say what should be the legal ramifications that we could use to potentially hold individuals accountable, whether it be citizens or information that might be injected into our media by other other forces or other countries, if you will. 1:11:40 Ronald Moultrie: I think right now what's really important for us to protect is how we know certain things. So there are a lot of things that we know, whether it'd be about the thinking of other leaders around the world, the weapon systems that are being developed, or how we detect things that may be threats to us. Many of those things are the result of some of our most sensitive sources and methods. And we'll use those things not just for this effort, but those same sources and methods are used to help protect us from adversaries and from others who might mean to do us harm. There aren't separate UAP sensors, there's not a separate UAP processing computer, there's not a separate UAP dissemination chain or whatever. So it's the same processes, it's the same system that we have that helps us do all that. We need to protect that. 1:15:40 Rep. Rick Crawford (R-AR): Do we have an example, can you cite a specific example of an object that can't be explained as having been human made or natural? Scott Bray: I mean, the example that I would say that is still unresolved, that I think everyone understands quite well, is the 2004 incident from Nimitz. We have data on that, and that simply remains unresolved. Executive Producer Recommended Sources Music by Editing Production Assistance
2023-07-30
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CD277: PGA LIVs

The Chief Operating Officer and a board member of the PGA golf tour recently testified to the Senate as part of its investigation into the possible merger between the PGA and LIV golf tours. In this episode, hear a summary of their testimony which was about monopoly powers, labor rights, Saudi Arabian oil money, loyalty to country?. So much more than golf. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes PGA Tour 2022. Official 2022-23 PGA Tour Media Guide. Saudi Arabia Public Investment Fund. February 24, 2021. BBC. LIV Golf Fergus Bisset. February 1, 2023. Golf Monthly. Doric Sam. August 1, 2022. Bleacher Report. LIV vs. PGA Tim Schmitt. February 17, 2023. Golfweek. PA Media. August 3, 2022. The Guardian. Mark Schlabach. July 11, 2022. ESPN. Yemen Ryan Grim. May 18, 2023. The Intercept. Bruce Riedel. January 27, 2023. Brookings. Shuaib Almosawa. March 16, 2022. The Intercept. Audio Sources July 11, 2023 Senate Committee on Homeland Security & Governmental Affairs, Permanent Subcommittee on Investigations Witnesses: Ron Price, Chief Operating Officer, PGA TOUR Jimmy Dunne, Board Member, PGA TOUR 2002 HBO Music by (found on by mevio) Editing Production Assistance
2023-07-15
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CD276: The Demise of Dollar Dominance

The U.S. dollar?s status as the global reserve currency is diminishing, which reduces the power that U.S. leaders have over the global economic system. In this episode, hear highlights from recent Congressional testimony during which financial elites examine the current status of the global financial system and what Congress is being told to do to address perceived threats to it (and to their own power). Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes International Monetary Fund Updated June 21, 2023. International Monetary Fund. June 9, 2023. International Monetary Fund. Updated December 2022. International Monetary Fund. Argentina October 17, 2018. International Monetary Fund. January 11, 1999. International Monetary Fund. Ecuador March 13, 2003. International Monetary Fund. Smaller Banks within the World Trade System China World Trade Organization. World Trade Organization. Stephen Kirchner. January 24, 2022. United States Studies Centre. Kurt M. Campbell and Ely Ratner. February 13, 2018. Foreign Affairs. The World Bank December 10, 2020. Bretton Woods Observer. Eric Toussaint. April 2, 2020. Committee for the Abolition of Illegitimate Debt. Yukon Huang. January 15, 2020. Carnegie Endowment for International Peace. Congressional Stock Trade Tracking US Abuse of Sanctions Lawrence Summers et. al. June 15, 2023. Foreign Affairs. Allies Pivoting Jamil Anderlini and Clea Caulcutt. April 9, 2023. Politico. February 2, 2022. Al Jazeera. Witnesses Accessed June 24, 2023. Council on Foreign Relations. Carla Norrlof - Atlantic Council. Audio Sources June 7, 2023 House Financial Services Committee Witnesses: Dr. Tyler Goodspeed, Kleinheinz Fellow, Hoover Institution at Stanford University Dr. Michael Faulkender, Dean?s Professor of Finance, Robert H. Smith School of Business at University of Maryland Dr. Daniel McDowell, Associate Professor, Maxwell School of Citizenship & Public Affairs at Syracuse University Marshall Billingslea, Senior Fellow, Hudson Institute Dr. Carla Norrlöf, Senior Fellow, The Atlantic Council and Professor, University of Toronto Clips 34:05 Dr. Tyler Goodspeed: In 2022, as the Ranking Member highlighted, 88% of all foreign exchange transactions by value involved the United States Dollar, a figure that has been roughly constant since 1989, which is testament to the substantial path dependence in international currency usage due to large positive network externalities. As the Ranking Member also highlighted, 59% of all official foreign exchange reserves were held in US dollars, which is down from a figure of 71.5% in 2001. By comparison 31% of all foreign exchange transactions by value involve the Euro, which is the second most commonly transacted currency, which accounted for 20% of official foreign exchange reserves. 34:50 Dr. Tyler Goodspeed: The fact that 90% of all foreign exchange transactions continue to involve the United States dollar, and that global central banks continue to hold almost 60% of their foreign exchange reserves in US dollars confers net economic benefits on the United States economy. First, foreign demand for reserves of US dollars raises demand for dollar denominated securities, in particular United States Treasury's. This effectively lowers the cost of borrowing for US households, US companies, and federal, state and local governments. It also means that on average, the United States earns more on its investments in foreign assets than we have to pay on foreign investments in the United States, which allows the United States to import more goods and services than we export. Second, foreign demand for large reserves of US dollars and dollar denominated assets raises the value of the dollar and a stronger dollar benefits us consumers and businesses that are net importers of goods and services from abroad. Third, large reserve holdings of US currency abroad in effect constitutes an interest free loan to the United States worth about $10 to $20 billion per year. Fourth, the denomination of the majority of international transactions in US dollars likely modestly lowers the exchange rate risks faced by US companies. Fifth, the given the volume of foreign US dollar holdings and dollar denominated debt, monetary policy actions by foreign central banks generally have a smaller impact on financial conditions in the United States than actions by the United States Central Bank have on financial conditions in other countries. 36:40 Dr. Tyler Goodspeed: However, the benefits of the US dollar's global reserve status are not without costs. The lower interest rates in the United States benefit US borrowers, especially the federal government. They also lower returns to US savers. In addition, though a stronger dollar benefits US consumers and businesses that net import goods and services from abroad, it does also disadvantage US firms that export goods and services abroad as well as firms that compete against imported goods and services. Furthermore, the perception of the US dollar as a safe haven asset means that demand for the dollar tends to increase in response to adverse macroeconomic events that are global in nature. As a result, the competitiveness of US exporters and US firms that compete against imported goods and services are likely to face an increased competitive disadvantage at times of elevated global macroeconomic stress. 37:35 Dr. Tyler Goodspeed: However, despite these costs, studies generally find that the economic benefits of the dollar's prominent global status outweigh the costs, providing a modest net benefit to the United States economy. This does not include the substantial benefit to which the chairman referred of the United States dollar's centrality in global transactions, allowing the United States to utilize financial sanction tools when appropriate in support of national security objectives. 44:50 Dr. Daniel McDowell: With little more than the stroke of the President's pen or through an Act of Congress, the US government can use financial sanctions to impose enormous economic costs on targeted foreign actors, be they individuals, firms, or state institutions, by freezing their dollar assets or cutting them off from access to the banks through which those dollars flow. The consequences for individual targets, known as specially designated nationals or SDNs, are severe, significantly impairing targets capacity to participate in international trade, investment, debt repayment, and depriving them of access to their wealth. Over the last two decades, the United States has used the tool of financial sanctions with increasing frequency. For example, in the year 2000, just four foreign governments were directly targeted under a US Treasury Country Program overseen by the Office of Foreign Assets Control (OFAC). Today that number is greater than 20, and if we include penalties from secondary sanctions the list gets even longer. The more that the United States has reached for financial sanctions, the more it has made adversaries and foreign capitals aware of the strategic vulnerability that stems from dependence on the dollar. Some governments have responded by implementing anti-dollar policies measures that are designed to reduce an economy's reliance on the US currency for investment in cross-border transactions. But these measures sometimes fail to achieve their goals. Others have produced modest levels of de-dollarization. Notable examples here include Russian steps to cut its dollar reserves and reduce the use of the dollar and trade settlement in the years leading up to its full scale invasion of Ukraine, or China's ongoing efforts to build its own international payments network based on the Yuan, efforts that have taken on a new sense of urgency as Beijing has become more aware of its own strategic vulnerabilities from Dollar dependence. 47:05 Dr. Daniel McDowell: The United States should reconsider the use of so-called symbolic financial sanctions. That is, if the main objective of a tranche of sanctions is to signal to the world or to a domestic audience that Washington disapproves of a foreign government's policy choices, other measures that can send a similar signal but do not politicize the dollar system ought to be considered first. Second, the use of financial sanctions against issuers of potential rival currencies in particular, China and its Yuan should face a higher bar of scrutiny. Even a small targeted sanctions program provides information to our adversaries about their vulnerabilities, and gives them time to prepare for a future event when a broad US sanctions program may be called upon as part of a major security crisis, when such measures will be most needed. Finally, whenever possible, US financial sanctions should be coordinated with our allies in Europe and Asia, who should feel as if they are key stakeholders in the dollar system and not vassals to it. Such coordinated efforts will prevent our friends from seeking to conduct business with U.S. adversaries outside of the dollar system and send a message to the whole world that moving activities into secondary currencies, like the Euro or the Yen, is not a safe haven. 48:35 Marshall Billingslea: I'll say at the outset that I agree with you and others that to paraphrase Mark Twain, reports of the dollar's demise have been greatly exaggerated. That said, we need to remind ourselves that in the 16th century the Spanish silver dollar was the dominant currency, in the 17th century it was Dutch florins, in the 18th century it was the pound sterling. The link between a nation's currency and its role as the relatively dominant political actor on the world stage is pretty clear. And that is why people like Lula from Brazil, Putin and Xi all aspire to undercut the role of the dollar as the global reserve currency. 50:00 Marshall Billingslea: If we look at what Russia did in the run-up to its further invasion of Ukraine, they began dumping ownership of treasury bonds in 2018. In that year, they plummeted from $96 billion and holdings down to $15 billion and they also started buying large amounts of gold. China is now, as the Ranking Member has observed, embarking on its own its own gold buying spree. I haven't seen the data for May, but April marked the sixth straight month of Chinese expansion in its gold holdings, and I'm not sure I believe the official figures. We have to recall that China is the dominant gold mining player around the world and half of those gold mining companies are state-owned. So the actual size of China's war chest when it comes to gold reserves may be far higher. In fact, I suspect inevitably far higher than official numbers suggest. Last year China also started dumping its treasuries. 2022 marked the largest or second largest decrease on record, with a drop of about $174 billion, and China stood at the lowest level since 2010. In terms of its holdings, though, this past March they did reverse course. This bears close watching because a sell-off may be a strong indicator of planned aggression. 51:20 Marshall Billingslea: The sheer size of the Chinese economy dwarfs what we've been contending with in the form of Iran, Russia, and so on. And one of the first things that the Biden administration did in the wake of Russia's attack was start sanctioning Russian banks and de-SWIFTing them. That's one thing when you're going after an economy smaller than the size of Texas; it's quite another when you consider that out of the 100 largest banks in the world, China has 20, and all four of the top four are Chinese banks. And that is why many within the Treasury contended when I was there, and they will contend to this day, that these Chinese banks are simply too big to sanction. I don't agree that we can allow that to stand but I do believe we have to start taking very swift action to put us in a situation where we could take punitive measures on these banks if necessary. 54:10 Dr. Carla Norrlöf: I will note that the Dollar's dominance is not quite as strong amongst private actors and private markets as it is with governments. In private transactions, it averages about 45% of the world's total. That includes FX transactions, but also things like issuance of international debt, securities, and cross-border banking. 54:55 Dr. Carla Norrlöf: The Chinese Yuan poses no immediate threat to dollar dominance. It accounts for roughly 3% of overall reserves. So far China has been successful in promoting the Yuan with its trade partners, but the Yuan is scarcely used by countries outside trade with China. China is a potential long term challenger due to its active pursuit of trade and investment relationships. If the Yuan is increasingly used by third countries, it will pose a greater threat to the dollar. 55:30 Dr. Carla Norrlöf: And in addition to these external threats, there is also a domestic threat. Flirting with the possibility of a voluntary default puts dollar dominance at risk. What should the US do to maintain dominance, to curb the domestic threat? Congress should consider creating an alternative mechanism for resolving political differences on government spending and its consequences. 56:00 Dr. Carla Norrlöf: To rein in external threats the United States should, whenever possible, implement multilateral sanctions in support of broadly endorsed goals to shore up the liberal international order. This is likely to limit dollar backlash. 59:40 Marshall Billingslea: The thing I do worry -- I come back to this fact that they've been buying a lot of gold -- that one of the things that they could do, which would be very concerning, if they wind up having larger reserves of gold than we believe, is they could start issuing Yuan or gold denominated, gold-backed Yuan contracts and that would further their ambition for introducing the Yuan onto the world stage. 1:05:00 Marshall Billingslea: China considers the actual composition of its foreign exchange reserves to be a state secret. So they don't publish and they they view it as a criminal offense to try to obtain that information in terms of the balance of how much is gold, how much Dollar or Euro denominated. But the numbers I've seen suggest that still at this moment, about 50% to 60% of their Foreign Exchange reserves are still in Dollars or Euros, which means that they are at high risk of sanctions; we can affect them. The problem is that that war chest that they've built up is enormous. It's more than $3 trillion that they have in Foreign Exchange reserves. Compare that with what Russia had at the onset of its assault, which was around $680 billion, of which we managed to freeze overseas half of it, but Russia is still keeping its economy going despite the Biden administration sanctions. So imagine how they're going to be able to continue with that sizable war kitty in Beijing if they do decide to go after the Taiwanese. 1:09:00 Dr. Tyler Goodspeed: Short term I think the risk is that we continue to see diversification away from the dollar, PRC continuing to push other countries to use trade inverse invoicing and Renminbi, that they continue to promote the offshore Renminbi market, that they continue to promote or force bilateral clearing. Longer term, I think the bigger risk is that foreign investors no longer perceive the United States federal government debt to be as safe and risk free as it is today perceived. 1:41:20 Dr. Daniel McDowell: The demonstration of US control over the actual flow of dollars, of communication, absolutely provides information to adversaries to prepare for events where they may face similar circumstances. And so I think what we're seeing is China, we're seeing Russia, we're seeing other countries try to create alternative payments networks. Russia has its own SPFS payment messaging system. It's quite small. It was launched in 2014, not coincidentally, after the initial round of sanctions targeting Russia. In terms of CIPS, China's cross border payments network, Belarus announced it was having banks join immediately following the 2022 sanctions. So what I'm saying is there's a pattern between when the United States mobilizes control over the pipes and the messaging of cross-border payments and adversaries looking for alternatives. It doesn't mean they're using them, but they're getting plugged into the system as at least sort of a rainy day option in the event of a future targeting. 1:45:35 Dr. Daniel McDowell: I look at China not just as a typical country, because I think they're an alternative service provider. Most countries fall into alternative service users; they're looking for an alternative to the dollar. China, you could perhaps put Europe in this as well, are the only two sort of economic BLOCs capable, I think, of constructing an attractive enough cross-border payments network that could attract those alternative service users that are looking for that network. And so that's why I think again, with China, there should be a higher bar of scrutiny. 2:02:20 Dr. Tyler Goodspeed: As deficits mount and as the debt burden rises above 100%, I think the Congressional Budget Office has it ending the budget window at about 119% of our economy, then we will probably observe an acceleration of diversification away from the dollar as a hedge. Again, I don't see another single currency displacing the dollar as the major international currency or as the major reserve currency, but continued diversification. May 25, 2023 House Financial Services Committee Witnesses: Jesse M. Schreger, Associate Professor of Business, Columbia Business School Mark Rosen, Partner, Advection Growth Capital and former Acting Executive Director, International Monetary Fund (IMF) Daniel F. Runde, Senior Vice President, Center for Strategic & International Studies(CSIS) Rich Powell, Chief Executive Officer, ClearPath & ClearPath Action Daouda Sembene, Distinguished Nonresident Fellow, CGD and CEO, AfriCatalyst Clips 39:55 Mark Rosen: The IMF is the global lender of last resort to countries that are in economic distress. IMF borrowers usually have a balance of payments problem, are running out of foreign exchange reserves, and so cannot meet their obligations. The IMF negotiates a set of economic policies with the borrower in government to alleviate the crisis, and, conditional on the government implementing the agreed policies, provides a loan in tranches, normally over a three year period. 41:00 Mark Rosen: The biggest challenge the IMF faces today is China which, as we've heard, has lent vast sums to emerging market and low income countries in a non-transparent and irresponsible manner. Many IMF members are now struggling to repay China. 42:05 Mark Rosen: The United States is the largest shareholder in the IMF and has veto power over certain key decisions and it's critical that the US continues to maintain its ownership of more than 15% which enables it to have this veto power. 42:20 Mark Rosen: China for some time, has been pressing for an increased quota share at the IMF. However, given its irresponsible lending, and then willingness to provide debt relief to developing countries, this is not the time to reward China with increased ownership at the Fund. Two other issues I'd like to focus on are anti-corruption and the catalytic role of the private sector in the work of the IMF. Corruption is a severe problem for many emerging market countries, which do not have strong institutions that can confront and root out corruption. The IMF is certainly doing a much better job than it did historically on anti-corruption, but I believe it's critical that it continues to make anti corruption laws and policies front and center in the conditions of its lending programs, as well as a focus of its technical assistance. Only by reducing corruption will many of these countries be able to attract the vast amount of private sector investment which is potentially available and remains the ultimate key to reducing poverty. Establishing a rule of law, including laws to protect private property is key to unlocking this investment. And it should be a focus of the IMF and World Bank to encourage these countries to improve the rule of law and to fight corruption. If they do that, emerging market countries can attract private capital and grow rapidly as many countries that have followed that path have already done so successfully. 44:45 Daniel Runde: Multilateral development banks, MDBs, under US and Western leadership are one way that we can respond with something. The United States built and strengthened the MDB system. MDBs provide money, advice, data and convening power to help developing countries solve problems. If the US exerts its influence over these institutions, they are forced multipliers of a US-led global system. If we disregard our leadership role, then other actors, including China, can exert influence over them. The World Bank Group is a series of institutions: it lends money to national governments, it has a private sector arm, and has an insurance arm. There are a series of other regional development bank's including the InterAmerican Development Bank, the Asian Development Bank -- Taiwan is a member of the Asian Development Bank -- the African Development Bank and the EBRD, the European Bank for Reconstruction Development Bank, focused mainly on countries that used to be behind the Iron Curtain. The United States has been instrumental in creating the majority of these institutions and remains the largest, or one of the largest, shareholders of every afformentioned MDB. Since the founding of these institutions, the US has used its shareholding power to shape the policies and activities of MDBs in indirect support of American foreign policy. 47:10 Daniel Runde: What role does China play in the MDBs? They're a shareholder. China continues to borrow from the World Bank and the Asian Development Bank. That is crazy. That needs to stop. China is a shareholder. Also, Chinese firms can bid on MDB projects. China wins a lot of in terms of dollar value, a lot of the dollar value of World Bank contracts. Something to take a look at. 47:35 Daniel Runde: How does the Belt and Road figure into the MDBs? You all have heard of the Belt and Road. Infrastructure is now a strategic issue. China's Belt and Road Initiative is a combination of construction and financing projects for roads, airports, and energy around the world. Unfortunately for us, BRI is an ambitious project that speaks to the hopes of China's friends and potential friends. To counter the BRI, the US needs a positive alternative that says more than, "Don't work with China." Right? That's not a strategy. We've got to have an alternative. 1:12:50 Rep. Andy Barr (R-KY): How do we end China's eligibility to borrow from the World Bank? Daniel Runde: The Asian Development Bank has said they're going to end their eligibility by 2025. We should absolutely hold them to that. There is a temptation for the World Bank and the Asian Development Bank to continue to loan for a couple of reasons. One is they say, "Well, this is a window into how we can understand China better." There's lots of other ways to understand China better. And or this is a way for us to -- for a bunch of lending reasons that they do it. You all have the power of the purse, you have an ability, I think you should have blunted conversations with the administration about this. I suspect it's an open door, but it's going to require, I think, some pushing from Congress. I would encourage this committee to push the administration on ending lending to China. 1:14:30 Jesse Schreger: So fundamentally right now, the Renminbi is not yet positioned to compete with the US dollar for a number of reasons. First and foremost, the reason that the dollar plays the role it does in the international financial system is it provides the global safe asset. You're confident, except for the upcoming debt ceiling, that you will always be paid back if you own US dollars. That's fundamentally what you know. When you contemplate investing in China and holding Chinese Renminbi as reserves, you're not necessarily sure that you're gonna be able to turn that piece of paper into the goods and services that you need or intervening in FX markets. 1:21:15 Jesse Schreger: First and foremost, what China is trying to do is essentially convince countries around the world that the Renminbi is an alternative asset to invoice your trade and to invest in. And so on the investment side, they've been working very hard to actually allow in foreign capital, encouraging foreign central banks to hold Renminbi denominated bonds as their reserves. And on the trade side, they're encouraging firms to invoice, basically price their goods, in Renminbi. There's a few areas in which they've had challenges there. So first, we actually don't know who are holding most of these Renminbi denominated assets. What you can see is after the US sanctioned Russia back in 2014, it was the Russian Central Bank that effectively announced they were moving out of US dollar denominated assets and into Renminbi, so they did that publicly. And so China has effectively been trying to attract foreign capital of that form and a lot of the reasons for that is that China finds itself vulnerable in the dollar-based financial system. And so what I would say the fundamental area in which the United States can assure the dominance of the dollar is making everyone understand that US Treasuries are the world's safe asset that there is no state of the world in which the United States can or will default. 2:03:25 Jesse Schreger: I think the real way in which people start being able to issue and borrow in Renminbi is when people start thinking in terms of the goods that they need to buy and consume are in Renminbi. Fundamentally, most countries around the world, if they issue a bond in Renminbi, the calculation they have to do is then "okay, I'm going to take my renminbi and convert it into US dollars to buy the thing in which I need." And so while actions in the US financial system are certainly going to affect other countries decisions to borrow in Renminbi, the kind of underlying challenges in Chinese financial markets and fundamentally the lack of goods priced and sold in Renminbi are going to continue to hold back kind of a growth of this market for a while. And in particular, the fact that many countries are reluctant to try to raise money inside of China's liquid onshore capital markets for, effectively, fear of capital controls. If you've raised renminbi in China, you can't get that out and to your projects the way you can if you raise money in the US in dollars. 2:14:55 Daniel Runde: The business model of the World Bank is they lend money to richer countries with a pretty good credit rating and then they cross subsidize that by lending to poor countries with a poor credit rating. My view is, China can finance its own development, we should stop this practice. I think the Asian Development Bank has sort of gotten the memo, but the World Bank has not fully gotten the memo and they'll give you kind of World Bank-y answers to this sort of thing. We got to stop it. Rep. Zach Nunn (R-IA): Mr. Runde, I could not agree with you more. And you highlighted earlier, you know, by 2025, China should graduate from this program. I'd offer that 25 is two years too late. We can start funneling them off that now. Daniel Runde: I agree, sir. Rep. Zach Nunn (R-IA): I think you're in the right spot. Thank you. Music by Editing Production Assistance Cover photo
2023-06-26
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CD275: Debt Ceiling 2023: Crisis Normalized

Another unnecessary crisis averted. In this episode, Jen examines the debt ceiling crisis events of the past to show that the Fiscal Responsibility Act of 2023 - which raised the debt ceiling - is not likely to reduce our government?s debt but will likely ensure that our environment will be trashed for profit. She also examines the best path forward to ensure that the debt ceiling is never used for political leverage again. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Congressional Dish Episodes Debt Ceiling Overview Natalie Sherman. Jun 2, 2023. BBC. Noah Berman. Last Updated May 25, 2023. Council on Foreign Relations. Raymond Scheppach. May 12, 2023. The Conversation. Scott Simon and Lennon Sherburne. April 29, 2023. NPR. New Development Bank Ben Norton. Jun 8, 2023. Monthly Review Online. Jun 5, 2023. New Development Bank. Debt Limit History Bipartisan Policy Center. Paul Lewis and Dan Roberts. Oct 15, 2013. The Guardian. Binyamin Appelbaum and Eric Dash. Aug 5, 2011. The New York Times. Clay Chandler. Sept 22, 1995. The Washington Post. 2023 Crisis Carl Hulse. May 2, 2023. The New York Times. Carl Hulse and Jeanna Smialek. Apr 7, 2023. The New York Times. The Debt Cristina Enache. Jan 31, 2023. Tax Foundation. Updated May 25, 2023. Investopedia. Updated May 2021. Tax Policy Center. The Law Law Outline Sets spending caps for fiscal years 2024 and 2025 2024: Over $886 billion for defense Over $703 billion for non-defense If there is a continuing resolution in effect on or after January 1, 2024 for fiscal year 2024, or a continuing resolution for 2025 on or affect January 1, 2025, defense and non-defense spending will be sequestered, meaning a 1% across the board cut Explains how the House of Representatives must implement this law Explains how the Senate must implement this law Takes money back from accounts where it wasn't all spent including from: The Public Health and Social Services Emergency Fund The Centers for Disease Control and Prevention Specifically their COVID vaccine activities and vaccine supply chains All the money except $7 billion for COVID testing and mitigation All of the SARS-CO-V2 genomic sequencing money except for $714 million All of the money for COVID global health programs International Disaster Assistance funds for the State Department National Institutes of Health - National Institute of Allergy and Infectious Diseases Centers for Medicare and Medicaid Services Community health centers National Health Service Corps Nurse Corps Graduate level teaching health centers Mental health and substance use disorder training for health care professionals and public safety officers Grants for mental health for medical providers Funding for pediatric mental health care access Grants for survivors of sexual assault Child abuse prevention and treatment Medical visits at home for families State and local fiscal recovery funds Rural health care grants Restaurant revitalization fund Elementary and secondary school emergency relief funds Housing for people with disabilities Housing for the elderly Grants to Amtrak and airports Air carrier worker support and air transportation payroll support Defunds the IRS by approximately $1.4 billion Requires agencies to submit plan to reduce spending in an equal or greater amount to every action they take that increases spending. This is easily waived and expires at the end of 2024.. At the end of September, people with Federal student loans will have to begin repayment of their loans, and the Secretary of Education is not allowed to implement an extension of the payment pause. Orders reports about work requirements for welfare payments In order to receive food benefits for more than 3 months in a 3 year period, "able bodied" people have to work at least 20 hours per week or participate in a work program for 20 hours per week unless that person is under 18 or over 50 years old, medically unable to work, is a parent with dependent children, or is pregnant. This provision increases the work requirement age over the next few years so it becomes 55 years old. This provision adds homeless individuals, veterans or foster kids until they are 24 to the list of people exempt from the work requirements This provision expires and the qualifications revert back to what they used to be on October 1, 2030 Changes the requirements for NEPA environmental studies to include "any negative environmental impacts of not implementing the proposed agency action in the case of a no action alternative..." and requires only "irreversible and irretrievable commitments of FEDERAL resources which would be involved in the proposed agency action should it be implemented" Adds circumstances when agencies will not have to produce environmental impact documents Requires environmental impact statements when the action has a "reasonably foreseeable significant effect on the quality of the HUMAN environment." Allows agencies to use "any reliable data source" and says the agency is "not required to undertake new scientific or technical research unless the new scientific or technical research is essential to a reasoned choice among alternatives and the overall costs and time frame of obtaining it are not unreasonable." Assigns roles for "lead agencies" and "cooperating agencies" and says that the agencies will produce a single environmental document Sets a 150 page limit on environmental impact statements and 300 pages for a proposed agency action with "extraordinary complexity" Sets a 75 page limit on environmental assessments Requires lead agencies to allow a "project sponsor" to prepare environmental assessments and environmental impact statements under the supervision of the agency. The lead agency will "evaluate" the documents and "shall take responsibility for the contents." Environmental impact statements must be complete in under 2 years after the EIS is ordered by the agency Environmental assessments must be completed in 1 year The agency may extend the deadlines Project sponsors are given the right to take government agencies to court for failure to meet a deadline "Congress hereby ratifies and approves all authorizations, permits, verifications, extensions, biological opinions, incidental take statements, and any other approvals or orders issued pursuant to Federal law necessary for the construction and initial operation at full capacity of the Mountain Valley Pipeline." Gives the Secretary of the Army 21 days after enactment of this law to issue "all permits or verifications necessary to complete the construction of the Mountain Valley Pipeline across the waters of the United States" "No court shall have jurisdiction..." to review "...any approval necessary for the construction and initial operation at full capacity of the Mountain Valley Pipeline... including any lawsuit pending in a court as of the date of enactment of this section." Suspends the debt limit until January 1, 2025 On January 2, 2025, the debt limit will automatically increase to whatever amount the debt level is at the end of the suspension Audio Sources June 1, 2023 Senate Session Parts & May 31, 2023 May 30, 2023 House Committee on Rules Clips 22:50 Rep. Jason Smith (R-MO): I should note for my colleagues that Democrats could have raised the debt limit last year when they controlled the House of Representatives. 35:30 Rep. Ron Estes (R-KS): The Fiscal Responsibility Act finally ends the federal student loan moratorium and the so-called interest pause, effective August 31, 2023. For every month borrowers were allowed to skip payments, $4.3 billion were added to the American taxpayers debt. 41 months later, the moratorium has cost American taxpayers approximately $176 billion. 1:01:15 Rep. Joe Neguse (D-CO): The President put forward a budget months ago. Chairman Smith, do you know when the President submitted his budget to the United States Congress? Rep. Jason Smith (R-MO): I don't remember but it was -- Rep. Joe Neguse (D-CO): It was March 9th. Rep. Jason Smith (R-MO): It was late. It was due February 1st. Rep. Joe Neguse (D-CO): Oh, I'm glad you noted that. Chairman Smith, when did the Republicans submit their budget? Rep. Jason Smith (R-MO): You would need to ask the budget committee. Rep. Joe Neguse (D-CO): I would need to ask the budget committee. Mr. Estes. When did the Republicans submit their budget? [Pause] Only in the Rules Committee, by the way, could a witness lay blame at the president for being a few weeks late in submitting his budget when his party hasn't submitted a budget, period. 1:06:45 Rep. Brendan Boyle (D-PA): We also run the risk that we will one day not be the reserve currency of the world. The reason why our interest rates are so low comparatively, is because we are a safe haven for investment for the rest of the world. These sort of antics increasingly bring that into doubt whether or not folks will get their money, the folks who are lending to us. 1:24:15 Rep. Teresa Leger Fernandez (D-NM): Now, Standard and Poor's, they downgraded our credit rating. Have they increased that credit rating? Rep. Brendan Boyle (D-PA): No. There are three credit agencies Standard and Poor's, which was the one that downgraded us in 2011, never reversed their downgrade. And frankly my concern and the worry right now is that the other two credit agencies will now follow suit, given the events of the last couple of months, which obviously look very much like 2011 all over again. 1:50:55 Rep. Jim McGovern (D-MA): I continue to be stunned by the fact that when I look at this deal, which focuses on discretionary funding, that the people who seem to be asked to do the most or to absorb the hits the most are the people that least can afford it. The military budget is part of this discretionary budget, it's over 50% of the discretionary budget. The United States spends more on national defense than China, Russia, India, Saudi Arabia, United Kingdom, Germany, France, South Korea, Japan and Ukraine combined. And yet, if this moves forward, we see an increase in defense spending. I mentioned in my opening remarks, I don't know how many of you saw the 60 minutes piece the other day, I mean, we all know, of the cost overruns in the Department of Defense. I mean, the idea that we're spending $10,000 for a $300 oil switch. I mean, it's been there for a long time, and yet, we seem unable to want to grapple with that waste and those cost overruns. I don't know if it's the defense lobbyists or the campaign contributions or whatever it is, but somehow, when it comes to the military budget, you know, not only are we not holding them accountable, but you know, we say we're going to increase it even more, even more, we'll give you more. 2:57:40 Rep. Chip Roy (R-TX): Look, I'm for NEPA reforms 100%. We need them for road projects, transportation, particularly for our energy industry. But my concern here that we've got language that none of us have fully reviewed, going through the committees of jurisdiction that has been adopted, that I've got colleagues texting me and saying they're not 100% sure if that language is good or bad for the purpose intended. I've got colleagues on both sides of the aisle that have raised those questions. And so the purpose intended, of course, is to streamline projects, whatever those projects may be. But I've got a text right here from GOP colleagues saying, Well, I'm not so sure that these will actually do what we think they will do, to streamline said projects. And in fact, a former high up in the administration, in the Energy Department under the Trump administration, just validated that concern by one of my colleagues. Yet we are putting forward this measures saying some grand improvement with respect to NEPA, that that's somehow something we should be applauding when it's not the full package of H.R. 1, which had gone through committee. And importantly, the one thing that I think is 100% clear, is that this bill fails to include even the most basic reform to President Biden's unreliable energy subsidies that were put forward in the so called inflation Reduction Act for the wealthy, elites, corporations, and the Chinese Communist Party just to be blunt. And frankly, it ensures that permitting reform will likely benefit renewables the most. Basically, if you're a government that is subsidizing the crap out of something, in this case, unreliable energy, giving massive subsidies to billion dollar corporations, giving significant subsidies to families that make over 100,000, 300,000 for EVs, because you're chasing your your dreams of, you know, a fossil fuel-less world. You're going to absolutely decimate our grid because you're not going to have the projects being developed for the gas and the coal nuclear that are actually required to keep your grid functioning. But yeah, that's what we're doing and I just for the life of me can't understand why we're applauding that. 3:15:50 Rep. Jason Smith (R-MO): So we've been asking for the IRS to give us a plan of how they wanted to spend the additional $80 billion that they had. They finally gave that to Congress about six weeks, eight weeks ago. They broke down how they're spending the $80 billion: $1.4 billion of it was for hiring more agents and what the bill before you does, it eliminates that $1.4 billion for this year. May 25, 2023 House Session, Parts & May 24, 2023 May 21, 2023 60 Minutes May 17, 2023  Senate Budget Committee Witnesses: Bobby Kogan, Senior Director, Federal Budget Policy, Center for American Progress Bruce Bartlett, Former Deputy Assistant Secretary for Economic Policy, United States Department of Treasury Samantha Jacoby, Senior Tax Legal Analyst, Center on Budget and Policy Priorities Dr. Adam Michel, Director of Tax Policy Studies, Cato Institute Scott Hodge, President Emeritus & Senior Policy Advisor, Tax Foundation Clips 32:25 Bobby Kogan: Today I intend to make two points. First, without the Bush tax cuts, their bipartisan extensions, and the Trump tax cuts, the ratio of debt to GDP would be declining indefinitely. And second, our rising debt ratio is due entirely to these tax cuts and not to spending increases. Throughout this testimony, When I say spending, I mean primary spending, that is spending excluding interest on the federal debt, and every mention of revenues, spending deficits, and debt means those amounts as a percent of GDP. Okay, according to CBO primary deficits are on track to stabilize at roughly 4% over 30 years, high enough to cause the debt to rise indefinitely. The common refrain that you will hear, that I heard when I staffed this committee, and that unfortunately, I expect to hear today, is that rising debt is due to rising spending. Revenues have been roughly flat since the 1960s and while spending was also roughly flat until recently, demographic changes and rising healthcare costs are now pushing the costs up. These facts are true. Our intuitions might reasonably tell us that if revenues are flat, and spending is rising, then the one changing must be to blame. But our intuitions are wrong. In CBO's periodic long term projections earlier this century, spending was projected to continue rising, but despite this CBO routinely projected long term debt stability, It projected revenues to keep up with this rising spending, not due to tax increases, but due to our tax code bringing in more as our country and the people in it prospered. That prosperity results in both higher revenue collection and higher real after tax income for the people whose incomes are growing, it is a win win. In other words, we used to have a tax system that would fully keep pace with rising spending. And then the Bush tax cuts were enacted and expanded, and then on a bipartisan basis eventually made largely permanent in 2013. Under the law dictating CBO and OMB's baseline construction, temporary changes in tax law are assumed to end as scheduled. In practice this meant that CBO is projection showed the Bush tax cuts ending on schedule with the tax code then reverting to prior law. 2012 was therefore the last year in which CBO is projections reflected the Bush tax cuts expiring. Yes, CBO's 2012 long term projections showed rising spending, but it also showed revenues exceeding spending for all 65 years of its extended baseline with indefinite surpluses, CBO showed debt declining indefinitely. But ever since the Bush tax cuts were made permanent CBO has showed revenues lower than spending and has projected debt to rise indefinitely. And since then, the Trump tax cuts further reduced revenues. Without the Bush tax cuts, their bipartisan extensions, and the Trump tax cuts, debt would be declining indefinitely, regardless of your assumptions about the alternative minimum tax. Two points explain this. The first employs a concept called the fiscal gap, which measures how much primary deficit reduction is required to stabilize the debt. The 30 year fiscal gap is currently 2.4% of GDP, which means that on average primary deficits over 30 years would need to be 2.4% of GDP lower for the debt in 2053 to be equal to what it is now. The size of the Bush tax cuts their extensions and the Trump tax cuts under current law over the next 30 years is 3.8% of GDP. Therefore, mathematically and unequivocally without these tax cuts, debt would be declining as a percent of GDP, not rising. 41:45 Bruce Bartlett: The reason I changed my mind about taxes and decided that we needed tax increases happened on a specific day that I'm sure Senator Grassley remembers, if nobody else. And that was the day in November of 2003, when the Medicare Part D legislation passed, and I was just, you know, at the time, I thought the reason Republicans, and I was a Republican in those days, were put on this earth was to control entitlement programs. And I was appalled that an entirely new entitlement program was created that was completely unfunded. It raised the deficit forever by about 1% of GDP. And I thought a dedicated tax should have been enacted, along with that program, which I didn't oppose and don't oppose. In fact, I benefit from it at my age. But I just think that we need proper funding. And that was when I first started saying we needed to raise taxes, because we just can't cut discretionary spending enough to fix the problem. And I think this is the error of the House budget, which cuts almost entirely domestic discretionary spending, doesn't even touch defense, and I just think that's extraordinarily unrealistic and an unserious approach to our deficit problem. We simply have to do something about entitlements. If you're going to control spending, control the budget on the spending side, I don't think we're going to do that. I think we need a new tax. I have advocated a value added tax for many years, as a supplement to our existing tax system. It creates, you can raise a lot of revenue from it every virtually every industrialized country has one. The money could be used to fix things in the tax code, as a tax reform measure. Once upon a time in the 70s, and even the 80s, it was considered the sine qua non of Republican tax policy, because it's a consumption based tax system, a flat tax, and now many Republicans are in favor of something called the Fair Tax which is very similar except that it won't work. Administratively it's poorly designed. The Value Added Tax will work and that's why it should be a better approach to these problems. 49:15 Samantha Jacoby: Wealthy people who get their income from investments accumulate large gains as those assets go up in value over time, but they won't owe income tax unless they sell their assets. And if they never sell, no one will ever pay income tax on those gains. That's arguably the biggest flaw in the tax code. Policymakers should consider a tax like President Biden's budget proposal to enact a minimum tax on very wealthy households. This would treat unrealized capital gains, which is the primary source of income for many wealthy households, as taxable income instead of letting income accrue tax free across generations. 54:15 Dr. Adam Michel: Keeping government small is the best way to ensure that the American people can continue to prosper. 58:45 Scott Hodge: There are many elements of the tax code that benefit the wealthy and big corporations, I absolutely agree, and the inflation Reduction Act is the most recent example of corporate welfare in the tax code. 1:01:00 Samantha Jacoby: So the the 2017 law, it dramatically changed the way that foreign profits are taxed of multinationals. And so what happens now is large corporations who have big, big foreign profit centers, lots of foreign profits overseas, they pay a lower tax rate on those foreign profits than they do on their domestic profits or purely domestic businesses pay. 1:02:55 Bruce Bartlett: And one of the things I tried to do in my prepared testimony is look at what has actually happened in the seven years since then. And very few studies, I know, some of the tests, the footnotes and my colleagues testimony or to our projections based on studies were done in 2017, 2018. I tried to find things that were written more recently, perhaps, or preferably, I should say, in the academic literature, which I think is more substantive and more dependable. And I looked at peer reviewed journals, and the data that I could find showed no macroeconomic impact whatsoever. It didn't raise growth, it didn't lower growth. And I think I concluded in that -- Sen. Sheldon Whitehouse (D-RI): It did shift wealth, correct? Bruce Bartlett: Excuse me? Sen. Sheldon Whitehouse (D-RI): It did shift wealth. Bruce Bartlett: Oh, absolutely. No question about that. But I'm more interested in the macroeconomic effect on investment and growth and employment. And I would just close by saying that if a tax cut had no positive impact, then it can't have any negative impact if you get rid of it. Now, you may not want to for other reasons.... 1:05:25 Bobby Kogan: Right. So our demographic changes and rising healthcare costs are the reason that spending is increasing. If you break spending into two categories, Medicare, Medicaid, Social Security, everything else, including the everything else entitlements, the everything else is shrinking as a percent of GDP and it's the Medicare, Medicaid and Social Security that are growing. And they are growing not because they are getting more, they're doing more, it's not because we're giving more and more to seniors, and to extremely poor people, but because it costs more to do the same. And that is the rising that is the demographics is changing the ratio of non workers to workers and there's also the rising health care costs. And so what this means is that if you want to spend less, you are necessarily saying that future seniors should be getting less of a benefit than they're currently getting. That's the only way to do it. Since that's the portion of the budget that's growing, if you want to cut that, you have to say that the current amount that we're doing for Social Security recipients, the current amount that we're doing for seniors, the current amount that we're doing for people on Medicaid is too much, and future people should be having less. That's the only way to do it. And, you know, the very nice thing that I had though, ii my testimony, we used to have a tax system that despite that rising, we keep up with that, and now we don't. 1:15:50 Bruce Bartlett: Well, first of all, I think in terms of tax shelters and tax evasion and extreme levels of tax avoidance, the problem isn't so much with the law as with the enforcement. And as you know, it's been the policy of Republicans to slash the budget of the IRS in real terms, for many years, which is a way of giving, privatizing tax avoidance to rich people and the rich individuals have the greatest power and ability to evade taxation. And I think it was really wonderful that the Congress increased the IRS budget, and I think it's just the height of absurdity that one of the major elements of the House Republican proposal is to slash the IRS budget again, even though the CBO has said this is a revenue losing proposition. 2:06:40 Bruce Bartlett: I think there's absolutely no question that the debt limit is unconstitutional, and not just under the 14th Amendment, section four, but under the general powers of the President. I mean, one of the things that I will point out is that the debt limit is a very serious national security issue. A huge percentage of the national debt that is owned by foreigners is owned by foreign central banks. They are not going to be happy if their assets are suddenly worth a great deal less than they thought they were. I think the President has full power within his inherent authority to simply declare the debt limit null and void. And I would point out that it's not a simple question of whether you just break the debt limit. I think a lot of people, even on this committee, forget the impoundment part of the Budget Act of 1974, which says the President must spend the money that is appropriated by law, he doesn't have the choice not to, which is what some Republicans seem to think that he can do. And he lacks that power. So I would agree that the President has that power. I wish he would use it. I wish it as sincerely as anything I believe in life. Thank you. May 16, 2023 May 16, 2023 May 15, 2023 May 10, 2023 Senate Session, Parts & May 19, 2023 May 9, 2023 May 4, 2023 Senate Session, Parts & May 2, 2023 Music by Editing Production Assistance
2023-06-12
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CD274: Norfolk Southern Train Derailment in East Palestine

On February 3rd, a train carrying 20 cars with poisonous, flammable chemicals derailed in East Palestine, OH. In this episode, we?re going to get some answers. Using testimony from four Congressional hearings, community meeting footage, National Transportation Safety Board preliminary reports, and lots of articles from local and mainstream press, you will learn what Congress is being told as they write the Rail Safety Act, which both parts of Congress are working on in response to the East Palestine train derailment. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes East Palestine Derailment Overview Alisha Ebrahimji and Holly Yan. Mar 23, 2023. CNN. Associated Press. Feb 8, 2023. NPR. Feb 8, 2023. Cleveland 19 News. Vinyl Chloride and Dioxins Associated Press. Feb 8, 2023. CBS News Pittsburgh. Oct 4, 2016. World Health Organization. Last reviewed Oct 21, 2014. Centers for Disease Control Agency for Toxic Substances and Disease Registry. National Transportation Safety Board Findings Last updated Mar 21, 2023. National Transportation Safety Board. Ian Cross. Feb 14, 2023. ABC News 5 Cleveland. ?Vent and Burn? Decision Jordan Chariton. May 25, 2023. Status Coup News. Tara Morgan. May 15, 2023. ABC News 5 Cleveland. Daniel Bates. May 15, 2023. The Daily Mail. EPA failures Louis DeAngelis. Mar 29, 2023. Status Coup News. East Palestine Resident Health Problems Zsuzsa Gyenes. May 16, 2023. The Guardian. Nicki Brown, Artemis Moshtaghian and Travis Caldwell. Mar 4, 2023. CNN. Tara Morgan. Apr 28, 2023. ABC News 5 Cleveland. Norfolk Southern Norfolk Southern. Andrea Cambron, Jason Carroll and Chris Isidore. May 11, 2023. CNN Business. Aaron Gordon. Feb 15, 2023. Vice. Rachel Premack. Feb 14, 2023. Freight Waves. Josh Funk. May 16, 2021. AP News. Lobbying Against Regulations David Sirota et al. Feb 8, 2023. The Lever. ECP Brake Deregulation William C. Vantuono. Dec 5, 2017. Railway Age. Railway Safety Act Abigail Bottar. May 10, 2023. Ideastream Public Media. Staffing Cuts Heather Long. Jan 3, 2020. The Washington Post. Long Trains Dan Schwartz and Topher Sanders. Apr 3, 2023. Propublica. Bills Audio Sources May 10, 2023 Senate Committee on Commerce, Science and Transportation Clips 36:30 Sen. JD Vance (R-OH): This bill has changed a lot from what I introduced just a few short months ago. We?ve made a number of concessions to industry; a number of concessions to the rail industry, a number of concessions to various interest groups, which is why we have so much bipartisan support in this body but also why we have a lot of support from industry. March 28, 2023 March 28, 2023 House Energy and Commerce Subcommittee on Environment, Manufacturing, & Critical Materials Witnesses: Debra Shore, Regional Administrator, U.S Environmental Protection Agency, Region 5 Wesley Vins, Health Commissioner, Columbiana County General Health District Anne M. Vogel, Director, Ohio Environmental Protection Agency Clips 30:40 Debra Shore: Since the derailment, EPA has been leading robust, multi-layered air quality testing, using state of the art technology in and around East Palestine, and that extensive monitoring has continued daily at 23 stations throughout the community. Since the fire was extinguished on February 8, EPA monitors have not detected any volatile organic compounds above established levels of health concerns. EPA has also been assisting with indoor air screenings in homes through a voluntary program to keep residents informed. As of March 21, more than 600 homes have been screened, and no sustained or elevated detections of chemicals have been identified. 33:00 Debra Shore: Here's how EPA is holding Norfolk Southern accountable. On February 21, EPA issued a Unilateral Administrative Order to Norfolk Southern, including a number of directives to identify and clean up contaminated soil and water resources, to attend and participate in public meetings at EPA's request, and to post information online, and ordering the company to pay EPA's costs for work performed under the order. All Norfolk Southern work plans must be reviewed and approved by EPA. It must outline all steps necessary to address the environmental damage caused by the derailment. If the company fails to complete any of the EPAs ordered actions, the agency will immediately step in, conduct the necessary work, and then seek punitive damages at up to three times the cost. 46:30 Rep. Bill Johnson (R-OH): In one case, trucks were actually turned around at the gate of a proper, certified disposal facility and sent back to East Palestine to sit practically in my constituents backyard. Why did the EPA believe that it needed to send those letters? Debra Shore: Chairman Johnson, the instance you cite occurred before EPA assumed responsibility under the Unilateral Administrative Order for the cleanup. We don't know who told those trucks to turn around, whether it was the disposal facility itself or someone else. 48:50 Rep. Bill Johnson (R-OH): Why were they turned around? Debra Shore: This occurred during the transition period between Ohio EPA and US EPA assuming the lead for the emergency response. As such, under the Unilateral Administrative Order, all disposal facilities are required to be on the CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) approved off-site disposal list. So, we needed a few days to review what had occurred and ensure that those facilities that Norfolk Southern had contracts with were on that approved list. Once we determined which ones were on the approved list, it's up to Norfolk Southern to ship waste off the site. 1:03:30 Rep. Diana DeGette (D-CO): Is the EPA intending to use the Unilateral Administrative Order to ensure that Norfolk Southern establishes a health and environmental screening program beyond this initial cleanup period? Debra Shore: Right now, the focus of the Unilateral Order and our work with Norfolk Southern is to make sure the site is cleaned up. I think the responsibility for that longer term health effort, I support what Dr. Vins recommended, and that may have to be negotiat[ed] with Norfolk Southern going forward. Rep. Diana DeGette (D-CO): Obviously, that hasn't started yet. Debra Shore: Not to my knowledge. 1:09:05 Rep. Buddy Carter (R-GA): What will take place in the remediation phase, what happens then? Debra Shore: Then there'll be restoration of stream banks and the places where the soil was removed from along the railroad sites and I think a larger vision for the community that they're already beginning to work on, such as parks and streetscapes. Rep. Buddy Carter (R-GA): Right. Any idea of what kind of timeframe we're talking about here? I mean, are we talking like in my district, decades? Debra Shore: No. We believe the core of the removal of the contaminated site and the restoration of the tracks will be several months. 1:11:35 Rep. Frank Pallone (D-NJ): When did clean up responsibility shift from EPA to Norfolk Southern, and what protections were put in place to ensure the health and safety of the community during that shift? Debra Shore: Thank you, Congressman Pallone. The transition from the State agency, which has the delegated authority in every state, has an emergency response capability, and so Ohio was on the ground working with the local firemen and other agencies as EPA arrived shortly after the derailment. It is typical in these kinds of emergency responses for the state agency to take the lead in the early days and Norfolk Southern was complying with the directives from the state. They continued to comply, but we've found over time that it's important to have all the authority to hold the principal responsible party in this case Norfolk Southern accountable, which is why on February 21, several weeks after the derailment, EPA issued its Unilateral Administrative Order. 1:19:55 Debra Shore: In the subsequent soil sampling that's been conducted, we looked at the information about the direction of the plume from the vent and burn event and focused that primarily where there might have been aerial deposition of soot or particulate matter, and that those soil samples have been collected in Pennsylvania. Rep. John Joyce (R-PA): And today, what soil, air, and water tests are continuing to occur in Pennsylvania? Debra Shore: Additional soil samples will be collected in collaboration, principally, with the Pennsylvania Department of Agriculture, the local Farm Bureau, and the Pennsylvania Department of Environmental Protection. 1:28:36 Anne M. Vogel: The reason that we have been able to say that the municipal drinking water is safe is based on an Ohio EPA map that pre-exists the derailment. This is the source water protection map. So the municipal wellfield is right here, if folks can see that, that big well in the blue. So the derailment happened way over here, a mile and a half away from the wellfield. And we know how the water flows, down this way, down this way, down the creeks. So the derailment would not have affected the municipal water source and we knew that very quickly after the derailment. 1:49:05 Debra Shore: Norfolk Southern has encountered some difficulties in finding and establishing contracts with sites to accept both liquid and solid waste. And I think we could accelerate the cleanup if they were able to fulfill that obligation more expeditiously. 1:51:20 Rep. Raul Ruiz (D-CA): What are some of the long term health concerns that residents and your providers have? Wesley Vins: We've heard a whole wide range of concerns long term. Certainly, cancer is first and foremost, because of much of the information that the residents see online and here, as well as reproductive concerns, growth concerns, hormonal concerns Rep. Raul Ruiz (D-CA): Do you think there's a potential with the carcinogens or any of the toxins that it could lead to ailments for five years from now? Wesley Vins: Yeah, I understand your question. So the some of the constituents that we have related to this response, obviously are carcinogenic, however, we're seeing low levels, is really the initial response. So I think the long question is, we don't know. Rep. Raul Ruiz (D-CA): We don't know. 2:04:50 Rep. Nanette Barragán (D-CA): Administrator Shore, one concern my office has heard is that relocation costs are not being covered by Norfolk Southern for everyone in East Palestine. How is it determined whether a resident is eligible to have their relocation costs paid for? Debra Shore: I'm sorry to hear that. My understanding was that Norfolk Southern was covering temporary relocation costs for any resident who sought that, and I would direct you to Norfolk Southern to ask why they are being turned down. Rep. Nanette Barragán (D-CA): Can the EPA require that Norfolk Southern cover relocation costs for anyone in East Palestine? Debra Shore: I'll find out. 2:11:45 Rep. Mariannette Miller-Meeks (R-IA): I guess my concern is, if the EPA is website says that the sampling data hasn't been quality assured, how did the EPA make the determination that the air is safe to breathe when it appears that the sampling data has not been quality assured? Debra Shore: Congresswoman, I'm going to ask our staff to get back to you with an answer for that. March 22, 2023 Senate Committee on Commerce, Science, & Transportation Introduction Panel: U.S. Senator Sherrod Brown U.S. Senator J.D. Vance Mike DeWine, Governor of Ohio Misti Allison, Resident of East Palestine Witnesses: Jennifer Homendy, Chair, National Transportation Safety Board David Comstock, Chief, Ohio Western Reserve Joint Fire District Clyde Whitaker, Legislative Director, Ohio State SMART-TD Alan Shaw, CEO, Norfolk Southern Ian Jefferies, CEO, Association of American Railroads Clips 1:35:00 Sen. Ted Cruz (R-TX): Is there any relief being offered now to say, if you make the decision to move your home and move your family somewhere else, there is an avenue for you to sell your home and get a fair market price for it? Misti Allison: The short answer is, as of today, no. There is not a clear cut explanation or parameters of how you would do that. We've heard time and time again from Norfolk Southern that they're going to make it right and that they're looking into some long term health care monitoring and assistance and home value protection, but details of that plan have not been disclosed to residents as of today. 1:42:05 Jennifer Homendy: This derailment, as all accidents we investigate, was 100% preventable. 1:43:20 Jennifer Homendy: First, the definition of high hazard flammable train should be expanded to a broader array of hazmats and the definition's threshold of 20 loaded tank cars in a continuous block or 35 tank cars dispersed throughout a train should be eliminated. Second, DOT 111 should be phased out of all hazmat service. They're not as protected as DOT 117 tank cars. Third, people deserve to know what chemicals are moving through their communities and how to stay safe in an emergency. That includes responders who risk their lives for each of us every single day. They deserve to be prepared. That means access to real time information, obtaining the right training and gear, and having the right communications and planning tools. Fourth, light cockpit voice recorders in the aviation, audio and video recorders in the locomotive cab are essential for helping investigators determine the cause of an accident and make more precise safety recommendations. Recorders also help operators proactively improve their safety policies and practices. In the East Palestine derailment, the locomotive was equipped with an inward facing camera. However, since the locomotive was put immediately back into service following the accident, the data was overwritten. That means the recorder only provided about 15 minutes of data before the derailment, and five minutes after. The FAST Act, following terrible tragedies in Chatsworth and in Philadelphia, required Amtrak and commuter railroads to maintain crash and fire hardened inward and outward facing image recorders in all controlling locomotives that have a minimum of a 12 hour continuous recording capability. This was extremely helpful in our DuPont Washington investigation. Now is the time to expand that requirement to audio, and include the Class One freight railroads in that mandate. In fact, now is the time to address all of the NTSB's open rail safety recommendations, many of which are on our most wanted list. Fifth and finally, as the committee works on enhancing rail safety, I trust that you'll consider the resources that we desperately need to carry out our critical safety mission. Investments in the NTSB are investments in safety across all modes of transportation. 1:52:05 Clyde Whitaker: This derailment did not have to happen. And it makes it so much more frustrating for us to know that it was very predictable. And yet our warnings and cries for help over the last seven years have fallen on deaf ears and the outcome was exactly as we feared. Now the result is a town that doesn't feel safe in their own homes, businesses failing to survive and a railroad that prioritized its own movement of trains, before the people in the community, as well as its workers. It truly is a shame that operational changes in place prior to that incident are still in place today and the possibility for a similar disaster is just as possible. My entire railroad career I've listened to the railroads portray a message and image of safety first, but I have never witnessed or experienced that truth, one single day on the property. For years I've handled complaint after complaint regarding unsafe practices and unsafe environments, and for almost every single one I've been fought every step of the way. The truth is, ask any railroad worker and they will tell you, that their carriers are masters of checking the boxes and saying the right things, without ever doing anything meaningful toward improving safety. They're only focus is on the operating ratios and bottom lines, which is evidenced by the fact that their bonus structures are set up to reward timely movements of freight rather than reaching destinations safely, as they once were. Actions do speak louder than words. And I assure you that what you have heard, and will hear, from the railroads today are nothing more than words. Their actions are what's experienced by men and women I represent as well as what the people of East Palestine have been through. This is the reality of what happens when railroads are primarily left to govern and regulate themselves. 1:54:05 Clyde Whitaker: On July 11, 2022, I filed a complaint with the FRA (Freight Railroad Administration) regarding an unsafe practice that was occurring on Norfolk Southern (NS), despite existing operating rules to the contrary. NS was giving instructions to crews to disregard wayside detector failures and to keep the trains moving. This meant the trains were not being inspected as intended, and that the crews were not able to ascertain the integrity of such trains. This practice remained in place even after East Palestine. 1:54:40 Clyde Whitaker: It is a virus that has plagued the industry for some time, with the exception of precision scheduled railroading. Across America, inspections and maintenance is being deferred to expedite the movement of trains. No longer is identifying defects and unsafe conditions the goal of inspections, but rather minimiz[ing] the time it takes to perform them, or the elimination of them all together. 2:17:40 Sen. Ted Cruz (R-TX): Why did Norfolk Southern not stop the train then and examine the bearing to make sure that it didn't melt the axle and that you didn't have a derailment? If you'd stop then it would have prevented the derailment. So my question is, why did the second hotbox reading not trigger action? Alan Shaw: Senator, my understanding is that that second reading was still below our alarm threshold, which is amongst the lowest in the industry. In response to this, the industry has agreed to work together to share best practices with respect to hotbox detectors, trending technology, and thresholds. Sen. Ted Cruz (R-TX): So when you and I visited my office yesterday, you said your threshold is now 170 degrees above ambient temperature. As I understand it, at the time of the derailment, your threshold was 200 degrees above ambient temperature. 2:20:15 Clyde Whitaker: Make note that trending defect detector technology from being in the cab of a locomotive, when we pass a defect detector, it trends to an office like Norfolk Southern in Atlanta, Georgia. It doesn't convey to the railroad crews, which is a problem in this incident as well as many others that still continue to this day. What we need as a train crew -- which they say they listen, they haven't been listening for quite a while -- we need to be notified whenever these trending detectors are seeing this car trend hotter. That way we can keep a better eye on it. 2:22:35 Clyde Whitaker: It is feasible. The technology is there. Several days after East Palestine, we almost had a similar incident in the Cleveland area on Norfolk Southern. The defect detector said no defects to the crew. The train dispatcher came on and said, "Hey, we have a report of a trending defect detector on the train. We need you to stop and inspect it." Immediately after that the chief dispatcher, which is the person that controls the whole railroad, told them to keep going. If it were not for an eastbound train passing them and instructing them, "Hey, your train is on fire, stop your train." And we set that car out. They had to walking speed this car five miles. So the technology is there. They're just raising and lowering their thresholds to move freight. 2:25:15 Sen. Ed Markey (D-MA): His testimony is loud and clear: it would have been worse if there was only one person as a crew on that train. Do you disagree with him? Alan Shaw: Senator, I believe that we have operations infrastructure on the ground to respond to derailments. Sen. Ed Markey (D-MA): I think you're not answering the question, okay? It's almost like the last hearing all over again. Because I think the evidence is very clear that these trains can be absolutely safer, but that technology is no replacement for human beings. For example, it can't provide the cognitive functions of a conductor and can't collect visual cues during an emergency. Two-person crews make our trains safer and I wish that you would commit to that today, because I think it's pretty obvious that is the correct answer. I just get sick of industry executives talking about supporting the principles of regulation, while they lobby against common sense regulations like this one behind the scenes. 2:38:50 Sen. Peter Welch (D-VT): I understand that the business plan of Norfolk Southern includes a $7.5 billion stock buyback that is ongoing. Do you believe it would be appropriate to suspend that buyback program until all of the assurances that you are making to this committee and also to the people of East Palestine, about "making this right," that that stock back buyback program should be suspended until you have accomplished what you've assured us and what you've assured that people of East Palestine that you would do? Alan Shaw: Senator, we think about safety every day. We spend a billion dollars a year in capital on safety. And we have ongoing expenses of about a billion dollars a year in safety and as a result over time, derailments are down, hazardous material releases are down and injuries are down. We can always get better. Sen. Peter Welch (D-VT): Right, so you won't answer my question about suspending the buyback program. Alan Shaw: Senator, stock buybacks never come at the expense of safety Sen. Peter Welch (D-VT): I take that is that you will continue with your plan on the buyback. 2:51:30 Sen. Shelley Moore Capito (R-WV): I know that high hazardous flammable trains have more safety regulations. Why would this not have been characterized as a high hazard flammable train if it had th ese hazardous materials on it as part of the 149 car train? Alan Shaw: Senator, thank you for your question. I'm not familiar with the entire makeup of the train. I know that a highly hazardous train is defined by a certain number of highly hazardous cars in it or a certain number of cars in a block. Sen. Shelley Moore Capito (R-WV): Miss Homendy, maybe you can help me with that question. Jennifer Homendy: Yes, the definition of a high hazard flammable train involves class three flammable liquids only, 20 car loads in a continuous block, which would be a unit train, or 35 car loads of class three flammable liquids in a mixed freight train. That was not what was on this train. There were some that were class three defined flammable liquids, but this train was not a high hazard flammable train. Sen. Shelley Moore Capito (R-WV): Right. It wasn't a high hazard train, but it had high hazardous materials that are very flammable that just lit up the sky. So is that something that you would consider that should be looked at as a safety improvement? Jennifer Homendy: Yes, Senator. We think that the thresholds of the 20 and 35 should be eliminated and we think a broader array of hazmat should be in the definition of high hazard flammable train. March 9, 2023 Senate Committee on Environment & Public Works Witnesses: Sen. Sherrod Brown (D-OH) Sen. JD Vance (R-OH) Sen. Bob Casey (D-PA) Alan Shaw, President and CEO, Norfolk Southern Corporation Debra Shore, Regional Administrator, U.S. Environmental Protection Agency, Region V Anne Vogel, Director, Ohio Environmental Protection Agency Richard Harrison, Executive Director and Chief Engineer, Ohio River Valley Water Sanitation Commission Eric Brewer, Director and Chief of Hazardous Materials Response, Beaver County Department of Emergency Services Clips 26:50 Sen. Sherrod Brown (D-OH): The company followed the Wall Street business model: boost profits by cutting costs at all costs, the consequences for places like East Palestine be damned. In 10 years, Norfolk Southern eliminated 38% of its workforce. Think of that. In a decade they cut more than a third of their jobs. We see what the company did with their massive profits. Norfolk Southern spent $3.4 billion on stock buybacks last year and were planning to do even more this year. That's money that could have gone to hiring inspectors, to putting more hotbox detectors along its rail lines, to having more workers available to repair cars and repair tracks. Norfolk Southern's profits have gone up and up and up and look what happened. 33:35 Sen. JD Vance (R-OH): It is ridiculous that firefighters and local officials don't know that hazardous chemicals are in their community, coming through their community. In East Palestine you had a community of largely volunteer firefighters responding to a terrible crisis, toxic burning chemicals, without knowing what was on them. 34:50 Sen. JD Vance (R-OH): I've talked to a number of my Republican colleagues and nearly everybody has dealt in complete good faith, whether they like the bill or have some concerns about it, and these comments are not directed at them. Who they are directed at is a particular slice of people who seem to think that any public safety enhancements for the rail industry is somehow a violation of the free market. Well, if you look at this industry and what's happened in the last 30 years, that argument is a farce. This is an industry that enjoys special subsidies that almost no industry enjoys. This is an industry that is enjoys special legal carve outs that almost no industry enjoys. This is an industry that just three months ago had the federal government come in and save them from a labor dispute. It was effectively a bailout. And now they're claiming before the Senate and the House that our reasonable legislation is somehow a violation of the free market. Well, pot, meet the kettle, because that doesn't make an ounce of sense. You cannot claim special government privileges, you cannot ask the government to bail you out, and then resist basic public safety. 40:10 Alan Shaw: Air and water monitoring have been in place continuously since the accident and to date it consistently indicated that the air is safe to breathe and the water is safe to drink. 47:20 Debra Shore: Since the fire was extinguished on February 8, EPA monitors have not detected any volatile organic compounds above levels of health concerns. 47:45 Debra Shore: EPA has been assisting with indoor air screenings for homes through a voluntary program offered to residents to provide them with information and help restore their peace of mind. As of March 4, approximately 600 homes had been screened through this program and no detections of vinyl chloride or hydrogen chloride have been identified. 48:40 Debra Shore: On February 21, we issued a unilateral administrative order to Norfolk Southern which includes a number of directives to identify and clean up contaminated soil and water resources, to attend and participate in public meetings at EPA's request, and to post information online, to pay for EPA's costs for work performed under this order. EPA is overseeing Norfolk Southern's cleanup work to ensure it's done to EPA specifications. The work plans will outline all steps necessary to clean up the environmental damage caused by the derailment. And most importantly, if the company fails to complete any of the EPA ordered actions, the agency will immediately step in, conduct the necessary work, and then force Norfolk Southern to pay triple the cost. 1:04:30 Eric Brewer: Norfolk Southern hazmat personnel and contractors arrived on scene shortly after 11pm. At around midnight, after research of the contents, it was decided to shut down fire operations and move firefighters out of the immediate area and to let the tank cars burn. This is not an unusual decision. This decision was made primarily by Norfolk Southern's hazmat coordinator, as well as their contractor. 1:05:15 Eric Brewer: There was a possibility of explosion and we should consider a one mile evacuation. Ohio officials notified us that the one mile radius would now be from the leaked oil address. This would add additional residents from Beaver County in the one mile evacuation zone. Donington township officials went door to door, as well as using a mass notification system to advise the residents of the one mile recommended evacuation. It was stressed that this was a recommendation as we cannot force residents from their homes. Social media posts began to circulate stating that arrest would be made if people refused to leave during the evacuation. Let me be clear that was not the case in Pennsylvania, as this was not a mandatory evacuation. Monday morning, we assembled at the Emergency Operations Center in East Palestine. We learned Norfolk Southern wanted to do a controlled detonation of the tank car in question. We were assured this was the safest way to mitigate the problem. During one of those planning meetings, we learned from Norfolk Southern that they now wanted to do the controlled detonation on five of the tank cars rather than just the one. This changed the entire plan, as it would now impact a much larger area. 1:21:25 Sen. Shelley Moore Capito (R-WV): Why did you wait a month before you started to order the dioxin testing when the community was asking for this? Was that a decision that you made early on that it wasn't critical? Or how was this decision made? Debra Shore: Senator Capito, our air monitoring was searching for primary indicators, such as phosgene and hydrogen chloride, immediately during and after the burn. We detected very low levels which very quickly went even down to non detectable. Without those primary indicators, it was a very low probability that dioxins would have been created. They are secondary byproducts of the burning of vinyl chloride. 1:25:40 Alan Shaw: As you saw just this week, a six point safety plan that included a number of issues which we're implementing immediately to improve safety, including installing more wayside detectors. The first one was installed yesterday outside of East Palestine. 1:30:20 Sen. Markwayne Mullin (R-OK): Mr. Shaw, when the vent and burn process was being made, who who made those decisions? And what was other considerations other than just burning it and letting the material burn off? Alan Shaw: Thank you for that question. The only consideration, Senator, was the safety and health of the community. And that decision was made by Unified Command under the direction of the Incident Commander? Sen. Markwayne Mullin (R-OK): Who's that? Alan Shaw: The Incident Commander was Fire Chief Drabick. Norfolk Southern was a part of Unified Command. 2:07:25 Alan Shaw: Senator, the NTSB report indicated that all of the hotbox detectors were working as designed. And earlier this week, we announced that we are adding approximately 200 hotbox detectors to our network. We already have amongst the lowest spacing between hotbox detectors in the industry. And we already have amongst the lowest thresholds. 2:15:35 Sen. Ed Markey (D-MA): Will you commit to compensating affected homeowners for their diminished property values? Alan Shaw: Senator, I'm committing to do what's right. Sen. Ed Markey (D-MA): Well, what's right is a family that had a home worth $100,000 that is now worth $50,000 will probably never be able to sell that home for 100,000 again. Will you compensate that family for that loss? Alan Shaw: Senator, I'm committed to do what's right. Sen. Ed Markey (D-MA): That is the right thing to do. These are the people who are innocent victims, Mr. Shaw. These people were just there at home and all of a sudden their small businesses, their homes are forever going to have been diminished in value. Norfolk Southern owes these people. It's an accident that is basically under the responsibility of Norfolk Southern, not these families. When you say do the right thing, will you again, compensate these families for their diminished lost property value for homes and small businesses? Alan Shaw: Senator, we've already committed $21 million and that's a downpayment Sen. Ed Markey (D-MA): That is a down payment. Will you commit to ensuring that these families, these innocent families, do not lose their life savings in their homes and small businesses? The right thing to do is to say, "Yes, we will." Alan Shaw: Senator, I'm committed to doing what's right for the community and we're going to be there as long -- Sen. Ed Markey (D-MA): What's right for the community will then be balanced -- which is what we can see from your stock buybacks -- by what's right for Norfolk Southern. March 6, 2023 Speakers: Heather Long, Columnist and Editorial Writer, Washington Post Jennifer Homendy, Chair, National Transportation Safety Board Clips 5:14 Jennifer Homendy: Hazardous materials are transported on all modes of transportation. Our aviation system is the safest, but they're limited in what they can transport for dangerous materials. Pipelines can also be safe as well. They have a generally good safety record until one big rupture occurs. But then our railroads also have a good safety record. Train accidents in general, per million trains miles, are going up. So it's trending upwards, accidents. With that said, going on our nation's roads with these materials is not something we want to see. You know, we have 43,000 people that are dying on our nation's roads annually. We have a public health crisis on our roads. Millions of crashes are occurring, so transporting hazmat on our roads would be more dangerous than on our railways. 6:50 Jennifer Homendy: The numbers are trending upward on accidents overall and also for Norfolk Southern 8:20 Jennifer Homendy: That is a role that's very important for the NTSB and why we are independent of the Department of Transportation. We are not part of the Department of Transportation because we do conduct federal oversight to see if DoT's oversight of the freight railroads is adequate or inadequate and we may make recommendations on that. 10:20 Jennifer Homendy: Once it hit well over 250 degrees, it was time for the train crew to stop to inspect the axle, to inspect the wheel bearing and to possibly, in this case, set out the car. But it was too late because as they were slowing and stopping, the train derailed, the wheel bearing failed. And so there might need to be more conservative temperature thresholdss o that started earlier. Also, something the Transportation Safety Board of Canada has looked at is real time monitoring of temperatures and data trending from the control center so that they can see the temperatures increase over a period of time. In this derailment, or what we saw of this train and its operations, is the temperature of that wheel bearing was going up pretty significantly over the course of the three different wayside detectors, but you know, the crew doesn't see that. So that real time monitoring and data trending so that there's some communication with the crew to stop the train and take immediate action is definitely needed. We'll look at that as part of our investigation as well. 12:30 Jennifer Homendy: One thing I will mention is that these decisions about the placement of these hot bearing detectors and the thresholds really vary railroad by railroad and so there needs to be good decision making, some policies and practices put in place. 18:00 Jennifer Homendy: Electronically controlled pneumatic (ECP) brakes don't prevent a derailment. It could lessen damage. So let me explain that. So in this one, car 23 still would have derailed because a wheel bearing failed. So car 23 still would have derailed. Still would have been a derailment, still would have been a fire, and the responders, and Norfolk Southern, and the state and locals would have had to still make a decision on whether to vent and burn the five vinyl chloride tank cars. There could have been a possibility of less damage, meaning a few cars could have remained on the track later in the train. But as for most of the damage, that still would have occurred whether we had ECP brakes on this train or not. 19:50 Heather Long: There's a lot fewer people working on rail, especially freight rail. Does the number of people make any difference here? Jennifer Homendy: Well for this one, as you said, we had two crew members and a trainee. They all stay, as with every train, in the cab of the head locomotive. So I do not see where that would have made a difference in this particular train and this derailment. One thing we are going to look at is whether any changes in staffing lead to any differences in how these cars are maintained or how they're inspected. That is something we will look at. 21:05 Jennifer Homendy: Yeah, so the fire chief, upon arrival at the command center following the derailment, had electronic access to the train consist, which is the list of cars and the materials or liquids that the train is carrying, but none of the responders had the Ask Rail app. You could look up a UN number for a particular car and get the whole consist of the train. It's in an app that the railroads developed for helping emergency responders to get information following an accident. 25:05 Jennifer Homendy: And we have over 250 recommendations that we've issued on rail safety generally that have not been acted upon yet. Music by Editing Production Assistance
2023-05-28
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CD273: Inside Congressional Committees with Dr. Maya Kornberg

For this episode, Jen sat down for an interview with fellow Congress nerd Dr. Maya Kornberg. Dr. Kornberg is a Research Fellow for the Brennan Center for Justice's Elections and Government Program and author of Inside Congressional Committees: Function and Dysfunction in the Legislative Process. They talk about how and why the power of committees has shifted over time, how witnesses are selected for hearings, why the hearing archives disappeared, resources for information that Congress has that we don?t have access to, and where we can find hope for improvements in terms of how Congress functions. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Relevant Links Brennan Center for Justice. House Natural Resources Committee. Music Presented in This Episode by
2023-05-14
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CD272: What is Taiwan?

Taiwan?s status in the world has never been clear and neither has the United States? position on the issue. In this Congressional Dish, via footage from the C-SPAN archive dating back into the 1960s, we examine the history of Taiwan since World War II in order to see the dramatic shift in Taiwan policy that is happening in Congress - and in law - right now. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Taiwan History and Background Susan V. Lawrence and Caitlin Campbell. Updated Mar 31, 2023. Congressional Research Service. Erin Hale. Oct 25, 2021. Aljazeera. Stacy Chen. Jan 16, 2020. ABC News. Randy Mulyanto. Sep 26, 2019. Aljazeera. U.S.-Taiwan Relationship Past Cornell Law School Legal Information Institute. Current Rupert Wingfield-Hayes. Apr 6, 2023. BBC News. Jude Blanchette et al. Aug 15, 2022. Center for Strategic and International Studies. Aug 4, 2022. DW News. News Wires. Feb 8, 2022. France 24. Dheepthika Laurent. Feb 8, 2022. France 24. Presidential Drawdown Authority Apr 19, 2023. U.S. Department of State Bureau of Political-Military Affairs. U.S. China Relationship Thomas L. Friedman. Apr 14, 2023. The New York Times. Laws Outline of Taiwan Provisions By the end of 2023, the Secretary of Defense is to assess the viability of our domestic critical infrastructure to identify chokepoints and the ability of our armed forces to respond to a contingency involving Taiwan, including our armed forces? ability to respond to attacks on our infrastructure. ?It shall be the policy of the United States to maintain the capacity of the United States to resist a fait accompli that would jeopardize the security of thepeople of Taiwan.? Fait accompli is defined as, ?the resort to force by the People?s Republic of China to invade and seize control of Taiwan before the United States can respond effectively.? Congress wants the Commander of the United States Indo-Pacific Command to carry out joint military exercises with Taiwan in ?multiple warfare domains? and practice using ?secure communications between the forces of the United States, Taiwan, and other foreign partners? Taiwan should be invited to participate in the Rim of the Pacific (RIMPAC) exercise in 2024. RIMPAC is a multinational maritime exercise, now the world?s largest, that has happened 28 times since 1971. The last one took place in and around Hawaii and Southern California in the summer of 2022. 26 countries, including the US, participated. PART 1 - IMPLEMENTATION OF AN ENHANCED DEFENSE PARTNERSHIP BETWEEN THE UNITED STATES AND TAIWAN Grants: Expands the purpose of the State Department?s Foreign Military Financing Program to ?provide assistance including equipment, training, and other support, to build the civilian and defensive military capabilities of Taiwan? Authorizes the State Department to spend up to $100 million per year for 10 years to maintain a stockpile of munitions and other weapons (authorized by ). Any amounts that are not obligated and used in one year can be carried over into the next year (which essentially makes this a $1 billion authorization that expires in 2032). The stockpile money is only authorized if the State Department certifies every year that Taiwan has increased its defense spending (requirement is easily waived by the Secretary of State). Authorizes $2 billion per year for the Foreign Military Financing grants each year for the next 5 years (total $10 billion in grants). The money is expressly allowed to be used to purchase weapons and ?defense services? that are ?not sold by the United States Government? (= sold by the private sector). No more than 15% of the weapons for Taiwan purchased via the Foreign Military Financing Program can be purchased from within Taiwan Loans: Also authorizes the Secretary of State to directly loan Taiwan up to $2 billion. The loans must be paid back within 12 years and must include interest. The Secretary of State is also authorized to guarantee commercial loans up to$2 billion each (which can not be used to pay off other debts). Loans guaranteed by the US must be paid back in 12 years. Requires the Secretary of State and Secretary of Defense to create a military training program with Taiwan by authorizing the Secretary of State to train Taiwan through the International Military Education and Training Program. The purposes of the training include enhancements of interoperability between the US and Taiwan and the training of ?future leaders of Taiwan?. The training itself can include ?full scale military exercises? and ?an enduring rotational United States military presence? Authorizes the President to drawdown weapons from the stocks of the Defense Department, use Defense Department services, and provide military education and training to Taiwan, the value of which will be capped at $1 billion per year The President is also given the ?emergency authority? to transfer weapons and services in ?immediate assistance? to Taiwan specifically valued at up to $25 million per fiscal year. ?The Taiwan Relations Act and the Six Assurances provided by the United States to Taiwan in July 1982 are the foundation for United States-Taiwan relations.? ?The increasingly coercive and aggressive behavior of the People?s Republic of China toward Taiwan is contrary to the expectation of the peaceful resolution of the future of Taiwan? ?As set forth in the Taiwan Relations Act, the capacity to resist any resort to force or other forms of coercion that would jeopardize the security, or the social or economic system, of the people on Taiwan should be maintained.? The US should continue to support Taiwanese defense forces by ?supporting acquisition by Taiwan of defense articles and services through foreign military sales, direct commercial sales, and industrial cooperation, with an emphasis on capabilities that support an asymmetric strategy.? Support should also include ?Exchanges between defense officials and officers of the US and Taiwan at the strategic, policy, and functional levels, consistent with the Taiwan Travel Act.? PART 3 - INCLUSION OF TAIWAN IN INTERNATIONAL ORGANIZATIONS ?Since 2016, the Gambia, Sao Tome and Principe, Panama, the Dominican Republic, Burkina Faso, El Salvador, the Solomon Islands, and Kiribati, have severed diplomatic relations with Taiwan in favor of diplomatic relations with China? ?Taiwan was invited to participate in the World Health Assembly, the decision making body of the World Health Organization, as an observer annually between 2009 and 2016. Since the 2016 election of President Tsai, the PRC has increasingly resisted Taiwan?s participation in the WHA. Taiwan was not invited to attend the WHA in 2017, 2018, 2019, 2020, or 2021.? ?United Nations General Assembly Resolution 2758 does not address the issue of representation of Taiwan and its people at the United Nations, nor does it give the PRC the right to represent the people of Taiwan.? By the end of Summer 2023, the Secretary of State must create a classified strategy for getting Taiwan included in 20 international organizations. The strategy will be a response to ?growing pressure from the PRC on foreign governments, international organizations, commercial actors, and civil society organizations to comply with its ?One-China Principle? with respect to Taiwan.? PART 4 - MISCELLANEOUS PROVISIONS ?Taiwan is now the United States 10th largest goods trading partner, 13th largest export market, 13th largest source of imports, and a key destination for United States agricultural exports.? Audio Sources February 9, 2023 Senate Foreign Relations Committee Witnesses: Wendy Sherman, Deputy Secretary of State, U.S. Department of State Ely Ratner, Assistant Secretary of Defense for Indo-Pacific Security Affairs, U.S. Department of Defense Clips 17:40 Wendy Sherman: We remain committed to our long standing One China Policy and oppose any unilateral changes to the cross-strait status quo. Our policy has not changed. What has changed is Beijing's growing coercion. So we will keep assisting Taiwan in maintaining a sufficient self-defense capability. 41:30 Sen. Marco Rubio (R-FL): I want to get a little broader because I think it's important to understand sort of the strategic vision behind our tactics on everything that we do. So if we go back to the late 80s, early 90s, end of the Cold War, and the gamble at the time was, if we created this international economic order, led by the US and the West, built on this global commitment to free trade, that this notion of that this trade and commerce would bind nations together via trade, via commerce and international interest and economic interest, that it would lead to more wealth and prosperity, that it would lead to democracy and freedom, basically domestic changes in many countries, and that it would ultimately ensure peace. The famous saying now seems silly, that no two countries with McDonald's have ever gone to war. That's obviously no longer the case. But the point being is that was the notion behind it. It was what the then Director General of the WTO called a "world without walls," rules-based international order. Others call it globalization. And basically, our foreign policy has been built around that, even though it's an economic theory it basically, is what we have built our foreign policy on. I think it's now fair to say that we admitted China to the World Trade Organization, Russia as well, I think it's now fair to say that while wealth certainly increased, particularly in China through its export driven economy, massive, historic, unprecedented amount of economic growth in that regard, I don't think we can say either China or Russia are more democratic. In fact, they're more autocratic. I don't think we can say that they're more peaceful. Russia has invaded Ukraine now twice, and the Chinese are conducting live fire drills off the coast of Taiwan. So I think it's fair to say that gamble failed. And we have now to enter -- and I think the President actually hinted at some of that in his speech the other night -- we're now entering a new era. What is that new era? What is our vision now for that world, in which not just the global international order and World Without Walls did not pacify or buy nations, but in fact, have now placed us into situations where autocracies, through a joint communique, are openly signaling that we need to reject Western visions of democracy and the like. So, before we can talk about what we're going to do, we have to understand what our strategic vision is. What is the strategic vision of this administration on what the new order of the world is? February 7, 2023 House Armed Services Committee, Subcommittee on Cyber, Information Technologies, and Innovation Witnesses: Chris Brose, Author Senior Director, Center on Cyber and Technology Innovation, Foundation for Defense of Democracies Peter Singer, Strategist at New America and Managing Partner of Useful Fiction LLC Clips 1:16:30 Rear Adm. Mark Montgomery: We don't have weapons stowed in Taiwan. In the last National Defense Authorization Act you authorized up to $300 million a year to be appropriated for Taiwan-specific munitions. The appropriators, which happened about seven days later, appropriated $0. In fact, almost all of the Taiwan Enhanced Resilience Act, which you all pushed through the NDAA, ended up not being appropriated in the Consolidated Appropriations Act that passed eight days later. 30:10 Chris Brose: Nothing you do in this Congress will make larger numbers of traditional ships, aircraft and other platforms materialized over the next several years. It is possible, however, to generate an arsenal of alternative military capabilities that could be delivered to U.S. forces in large enough quantities within the next few years to make a decisive difference. Those decisions could all be taken by this Congress. The goal would be to rapidly field what I have referred to as a "moneyball military," one that is achievable, affordable and capable of winning. Such a military would be composed not of small quantities of large, exquisite, expensive things, but rather by large quantities of smaller, lower cost, more autonomous consumable things, and most importantly, the digital means of integrating them. These kinds of alternative capabilities exist now, or could be rapidly matured and fielded in massive quantities within the window of maximum danger. You could set this in motion in the next two years. The goal would be more about defense than offense, more about countering power projection than projecting power ourselves. It would be to demonstrate that the United States, together with our allies and partners, could do to a Chinese invasion or a Chinese offensive what the Ukrainians, with our support, have thus far been able to do to their Russian invaders: degrade and deny the ability of a great power to accomplish its objectives through violence, and in so doing to prevent that future war from ever happening. After all, this is all about deterrence. All of this is possible. We have sufficient money, technology, authorities, and we still have enough time. If we are serious, if we make better decisions now, we can push this looming period of vulnerability further into the future. February 7, 2023 House Armed Services Committee Witnesses: Admiral Harry B. Harris Jr., USN (Ret.), Former Commander, U.S. Pacific Command Foreign Policy Fellow, Strobe Talbott Center for Security, Strategy, and Technology Clips 28:15 Rep. Mike Rogers (R-AL): China is the most challenging national security threat America has faced in 30 years. If we fail to acknowledge that and take immediate action to deter it, the next 30 years could be devastating for our nation. Under President Xi, the Chinese Communist Party has nearly tripled its defense spending in the last decade alone. The PLA has gone from an obsolete force barely capable of defending its borders to a modern fighting force capable of winning regional conflicts. The CCP now controls the largest army and navy in the world, with a goal of having them fully integrated and modernized by 2027. The CCP is rapidly expanding its nuclear capability; they have doubled their number of warheads in two years. We estimated it would take them a decade to do that. We also were just informed by the DOD [that] the CCP now has more ICBM launchers than the United States. The CCP is starting to outpace us on new battlefields as well. They have leapfrogged us on hypersonic technology, they are fielding what we are still developing. They are making advances in AI and quantum computing that we struggle to keep pace with. Finally, their rapid advances in space were one of the primary motivations for us establishing a Space Force. The CCP is not building these new and advanced military capabilities for self defense. In recent years, the CCP has used its military to push out its borders, to threaten our allies in the region, and to gain footholds on new continents. In violation of international law, the CCP has built new and commandeered existing islands in the South China Sea, where it has deployed stealth fighters, bombers and missiles. It continues to intimidate and coerce Taiwan, most recently by surrounding the island with naval forces and launching endless fighter sorties across its centerline. In recent years, the CCP has also established a space tracking facility in South America to monitor U.S, satellites, as well as an overseas naval base miles from our own on the strategically vital Horn of Africa. These are just a few destabilizing actions taken by the CCP. They speak nothing of the CCPs Belt and Road debt trap diplomacy, it's illegal harvesting of personal data and intellectual property, it's ongoing human rights abuses, and its advanced espionage efforts, the latter of which came into full focus for all Americans last week when the Biden administration allowed a CCP spy balloon to traverse some of our nation's most sensitive military sites. Make no mistake, that balloon was intentionally lost as a calculated show of force. 44:15 Dr. Melanie W. Sisson: Since 1979, the United States has adopted a constellation of official positions, together known as the One China policy, that allow us to acknowledge but not to accept China's perspective that there is one China and that Taiwan is part of China. Under the One China policy, the United States has developed robust unofficial relations with the government and people of Taiwan consistent with our interest in preserving peace and stability in the Taiwan Strait. US policy is guided by an interest in ensuring cross-strait disputes are resolved peacefully and in a manner that reflects the will of Taiwan's people. This has required the United States to deter Taiwan from declaring independence, and also to deter the CCP from attempting unification by force. The 40 year success of the strategy of dual deterrence rests upon the unwillingness of the United States to provide either an unconditional commitment to Taipei that it will come to its defense militarily, or an unconditional commitment to Beijing that we will not. The U.S. national security interest in the status of Taiwan remains that the CCP and the people of Taiwan resolve the island's political status peacefully. Dual deterrence therefore remains U.S. strategy, reinforced by U.S. declaratory policy which is to oppose unilateral changes to the status quo by either side. 45:28 Dr. Melanie W. Sisson: The modernization of the PLA has changed the regional military balance and significantly enough that the United States no longer can be confident that we would decisively defeat every type of PLA use of force in the Taiwan Strait. This fact, however, does not necessitate that the US abandon the strategy of dual deterrence and it doesn't mean that the United States should seek to reconstitute its prior degree of dominance. Posturing the U.S. military to convince the CCP that the PLA could not succeed in any and every contingency over Taiwan is infeasible in the near term and likely beyond. The PLA is advances are considerable and ongoing, geography works in its favor, and history demonstrates that it's far easier to arrive at an overconfident assessment of relative capability than it is to arrive at an accurate one. Attempting to demonstrate superiority for all contingencies would require a commitment of forces that would inhibit the United States from behaving like the global power that it is with global interests to which its military must also attend. This posture, moreover, is not necessary for dual deterrence to extend its 40 year record of success. We can instead encourage the government of Taiwan to adopt a defense concept that forces the PLA into sub-optimal strategies and increases the battle damage Beijing would have to anticipate and accept. 46:45 Dr. Melanie W. Sisson: U.S. military superiority in the Persian Gulf and Indian Ocean allows us to threaten the maritime shipping upon which China depends for access to energy, global markets, and supply chains. The inevitable damage a use of force would cause to the global economy and the imposition of sanctions and restricted access to critical inputs needed to sustain China's economic development and the quality of life of its people, moreover, would certainly compound China's losses. 1:04:50 Adm. Harry B. Harris: We're going to share the crown jewel of America's military technology, the nuclear submarine and the nuclear reactors, with another country and that's Australia. We have not done that with any other country, except for the UK, back in the late 50s, and into the 60s. So here we have the two countries with with that capability, the United States and the UK, and we're going to share that with Australia. It's significant. But it's only going to going to be significant over the long term if we follow through. So it's a decade long process. You know, some people the CNO, Chief of Naval Operations, has said it could be 30 years before we see an Australian nuclear submarine underway in the Indian Ocean. I said that if we put our hearts and minds to it, and our resources to it, and by ours, I mean the United States', the UK's and Australia's, we can do this faster than that. I mean we put a man on the moon and eight years, and we developed a COVID vaccine in one year. We can do this, but we're going to have to put our shoulders to the task for Australia, which has a tremendous military. For them to have the long reach of a nuclear submarine force would be dramatic. It would help us dramatically. It would change the balance of power in the Indian Ocean, and it will make Australia a Bluewater navy. They are our key ally in that part of the world and I'm all for it. 1:32:05 Adm. Harry B. Harris: I think this issue of strategic clarity versus strategic ambiguity is critical, and we have been well served, I'll be the first to say that, by the policy of strategic ambiguity with Taiwan over the past 44 years, but I think the time for ambiguity is over. I think we have to be as clear about our intent with regard to what would happen if the PRC invades Taiwan as the PRC is clear in its intent that it's ultimately going to seize Taiwan if need. 1:41:25 Adm. Harry B. Harris: I used to talk about during the Cold War with the Soviet Union, almost every branch of the U.S. government understood that the Soviet Union was the threat. You know, I used to joke even a park ranger, Smokey Bear, would tell you that the Soviets were the bad guys. We didn't have that comprehensive unified view of the PRC. You know, State Department looked at as in negotiation, DOD look at it as a military operation, Commerce looked at it as a trading partner, and Treasury looked at it as a lender. So we didn't have this unified view across the government. But I think now we are getting to that unified view and I think the Congress has done a lot to get us in that position. 1:49:45 Rep. Matt Gaetz (R-FL): We have the capability to block the transmission of information from the balloon back to China, don't we? Adm. Harry B. Harris Jr.: We do. Rep. Matt Gaetz (R-FL): And in this type of an environment do you think it's probably likely that we did that? Adm. Harry B. Harris Jr.: I would only guess, but I think General van Herk said that -- Rep. Matt Gaetz (R-FL): Well you can't see any reason why we wouldn't do that, right? March 14, 2014 House Foreign Affairs Committee Witnesses: Kin Moy, [Former] Deputy Assistant Secretary for East Asian and Pacific Affairs, U.S. Department of State Clips 7:20 [Former] Rep. Eliot Engel (D-NY): Taiwan is a flourishing multiparty democracy of over 20 million people with a vibrant free market economy. It is a leading trade partner of the United States alongside much bigger countries like Brazil and India. Over the past 60 years, the U.S.-Taiwan relationship has undergone dramatic changes, but Taiwan's development into a robust and lively democracy underpins the strong U.S.-Taiwan friendship we enjoy today. 14:00 Rep. Brad Sherman (D-CA): I think that it's important that we provide Taiwan the tools to defend itself, but Taiwan needs to act as well. Taiwan spends less than $11 billion on its defense, less than 1/5 per capita what we in America do, and God blessed us with the Pacific Ocean separating us from China. Taiwan has only the Taiwan Strait. On a percentage of GDP basis, Taiwan spends roughly half what we do. So we should be willing to sell them the tools and they should be willing to spend the money to buy those tools. 1:11:50 Rep. Randy Weber (R-TX): I think Chris Smith raised the issue of a One China policy. Does it not bother you that that exists, that there are statements that people have made, high level officials, that said they they agreed on one China policy? Does the administration not view that as a problem? Kin Moy: Our one China policy is one that has existed for several decades now. Rep. Randy Weber (R-TX): Okay. Well, I take that as a no, but let me follow up with what Jerry Connolly said. So you haven't sold submarines yet, you don't take Beijing into account. People around the world watch us. Words and actions have consequences. Would you agree that y'all would be okay with a one Russia policy when it comes to Crimea and the Ukraine? Is that akin to the same kind of ideology? Kin Moy: Well, I can't speak to those issues. But again, we are obligated to provide those defense materials and services to Taiwan and we have been through several administrations, I think very vigilant in terms of providing that. May 15, 2008 Senate Foreign Relations Committee Witnesses: Richard N. Haass, President, Council on Foreign Relations Harry Harding, Professor of International Affairs, George Washington University, 1995-2009 Clips 1:46:42 Richard N. Haass: The bottom line is China is not yet a military competitor, much less a military peer. Interestingly, I think Chinese leaders understand this. And they understand just how much their country requires decades of external stability so that they can continue to focus their energies and their attention on economic growth and political evolution. China is an emerging country, but in no way is it a revolutionary threat to world order as we know it. 1:47:20 Richard N. Haass: We alone cannot bring about a successful us Chinese relationship. What the Chinese do and say will count just as much. They will need to begin to exercise restraint and patience on Taiwan. There can be no shortcuts, no use of force. We, at the same time, must meet our obligations to assist Taiwan with its defense. We can also help by discouraging statements and actions by Taiwan's leaders that would be viewed as provocative or worse. 2:03:47 Harry Harding: Now with the support and encouragement of the United States, China has now become a member of virtually all the international regimes for which it is qualified. And therefore the process of integration is basically over, not entirely, but it's largely completed. And so the issue, as Bob Zoellick rightly suggested, is no longer securing China's membership, but encouraging it to be something more, what he called a "responsible stakeholder." So this means not only honoring the rules and norms of the system, but also enforcing them when others violate them, and assisting those who wish to join the system but who lack the capacity to do so. It means, in other words, not simply passive membership, but active participation. It means accepting the burdens and responsibilities of being a major power with a stake in international peace and stability, rather than simply being a free rider on the efforts of others. Now, China's reacted to the concept of responsible stakeholding with some ambivalence. On the one hand, it appreciates that the United States is thereby seeking a positive relationship with China. It suggests that we can accept and even welcome the rise of Chinese power and Beijing's growing role in the world. It certainly is seen by the Chinese as preferable to the Bush administration's earlier idea that China would be a strategic competitor of the United States, as was expressed during the campaign of 2000 and in the early months of 2001. However, Beijing also perceives, largely correctly, that America's more accommodative posture as expressed in this concept is conditional. China will be expected to honor international norms and respect international organizations that it did not create and it may sometimes question. And even more worrying from Beijing's perspective is the prospect that it's the United States that is reserving the right to be the judge as to whether Chinese behavior on particular issues is sufficiently responsible or not. August 4, 1999 Senate Foreign Relations Committee Witnesses: David ?Mike? M. Lampton, Founding Director, Chinese Studies Program, Nixon Center Stanley Roth, Assistant Secretary, East Asian and Pacific Affairs, U.S. Department of State Caspar W. Weinberger, Former Secretary, Department of Defense James Woolsey, Former Director, CIA Clips 9:00 Sen. Joe Biden (D-DE): Taiwan security, in my view, flows from its democratic form of government's growing economic, cultural and political contacts with the mainland and, ultimately, the United States' abiding commitment to a peaceful resolution of the Taiwan question. In my opinion, we should concentrate on strengthening those areas rather than spend time pre-authorizing the sales of weapon systems, some of which don't even exist yet. 20:10 Stanley Roth: There are three pillars of the [Clinton] administration's policy. First, the administration's commitment to a One China policy is unchanged. Regardless of the position of the parties, we have not changed our policy. The President has said that both publicly and privately. Second, we believe that the best means to resolve these issues is by direct dialogue between the parties themselves. We have taken every opportunity, including on my own trip to Beijing last week with Ken Lieberthal from the NSC, to urge the PRC to continue this dialogue. It strikes us that it's precisely when times are difficult that you need to dialogue, and to cancel it because of disagreements would be a mistake. China has not yet indicated whether or not these talks will continue in the Fall, as had been previously anticipated, but they put out a lot of hints suggesting that it wouldn't take place, and we are urging them to continue with this dialogue. Third point that is integral to our position. We have stressed again, at every opportunity, the importance of a peaceful resolution of this issue and the President has made that absolutely clear, as did Secretary Albright in her meeting with Chinese Foreign Minister Tong in Singapore last week, as did Ken Leiberthal and I in our meetings in Beijing. But China can have no doubts about what the United States' position is, with respect to peaceful resolution of this issue. 1:29:15 Caspar Weinberger: So I don't think that we should be hampered by or felt that we are in any way bound by what is said by the communique, nor should we accept the argument that the communique sets the policy of the United States. 1:32:50 Caspar Weinberger: There are two separate states now, with a state-to-state relationship, and that the unification which was before emphasized, they repeated again in the statement of Mr. Koo, the head of their Trans- Strait Negotiating Committee, that the unification might come when China itself, the mainland, changes, but that that has not been the case and it is not now the case. 1:41:15 David ?Mike? Lampton: Once both the mainland and Taiwan are in the WTO, each will have obligations to conduct its economic relations with the other according to international norms and in more efficient ways than now possible. 1:45:20 James Woolsey: The disestablishment of large, state-owned enterprises in China over the long run will bring some economic freedoms, I believe, that will quite possibly help change China and Chinese society and make it more conducive over time to political freedoms as well. But in the short run, the unemployment from the disestablishment of those enterprises can lead to substantial instability. February 7, 1996 Senate Foreign Relations Committee, Subcommittee on East Asian and Pacific Affairs Witness: Winston Lord, Assistant Secretary of East Asian and Pacific Affairs, U.S. Department of State Clips 16:45 Winston Lord: The Taiwan Relations Act of 1979 forms the basis of US policy regarding the security of Taiwan. Its premise is that an adequate defense in Taiwan is conducive to maintaining peace and security while differences remain between Taiwan and the PRC. I'm going to quote a few sections here because this is a very important statement of our policy. Section two B states, "It is the policy of the United States to consider any effort to determine the future of Taiwan by other than peaceful means, including by boycotts or embargoes, a threat to the peace and security of the Western Pacific area, and of grave concern to the United States. To provide Taiwan with arms of a defensive character, and to maintain the capacity of the United States to resist any resort to force or other forms of coercion that would jeopardize the security or the socioeconomic system of the people on Taiwan." Section three of the TRA also provides that the "United States will make available to Taiwan such defense articles and defense services in such quantity as may be necessary to enable Taiwan to maintain a sufficient self defense capability." 18:00 Winston Lord: The key elements of the US policy toward the Taiwan question are expressed in the three joint communiques with the PRC as follows. The United States recognizes the government of the PRC as the sole legal government of China. The US acknowledges the Chinese position that there is but one China and Taiwan as part of China. In 1982, the US assured the PRC that it has no intention of pursuing a policy of two Chinas, or one China, one Taiwan. Within this context, the people the US will maintain cultural, commercial and other unofficial relations with the people of Taiwan. The US has consistently held that the resolution of the Taiwan issue is a matter to be worked out peacefully by the Chinese themselves. A sole and abiding concern is that any resolution be peaceful. 19:30 Winston Lord: The U.S. government made reciprocal statements concerning our intentions with respect to arms sales to Taiwan, that we did not intend to increase the quantity or quality of arms supplied, and in fact intended gradually to reduce the sales. At the time the joint communique was signed, we made it clear to all parties concerned that our tensions were premised on the PRC's continued adherence to a policy of striving for peaceful reunification with Taiwan. 21:30 Winston Lord: The basic inventory of equipment which Taiwan has or will have in its possession will, in our view, be sufficient to deter any major military action against Taiwan. While arms sales policy aims to enhance the self defense capability of Taiwan, it also seeks to reinforce stability in the region. We will not provide Taiwan with capabilities that might provoke an arms race with the PRC or other countries in the region. 21:55 Winston Lord: Decisions on the release of arms made without proper consideration of the long term impact. both on the situation in the Taiwan Strait and on the region as a whole, would be dangerous and irresponsible. If armed conflict were actually breakout in the Taiwan Strait, the impact on Taiwan, the PRC, and indeed the region, would be extremely serious. The peaceful, stable environment that has prevailed in the Taiwan Strait since the establishment of our current policy in 1979 has promoted progress and prosperity on both sides of the Taiwan Strait. The benefits to Taiwan and the PRC have been obvious and I outline these in my statement. All of these achievements would be immediately put at risk in the event of conflict in the Strait. Conflict would also be costly to the United States and to our friends and allies in the region. Any confrontation between the PRC and Taiwan, however limited in scale or scope, would destabilize the military balance in East Asia and constrict the commerce and shipping, which is the economic lifeblood of the region. It would force other countries in the region to reevaluate their own defense policies, possibly fueling an arms race with unforeseeable consequences. It would seriously affect the tens of thousands of Americans who live and work in Taiwan and the PRC. Relations between the US and the PRC would suffer damage regardless of the specific action chosen by the President, in consultation with Congress. For all these reasons, we are firmly determined to maintain a balanced policy, which is best designed to avoid conflict in the area. Music Presented in This Episode by
2023-04-30
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CD271: RESTRICTing TikTok

TikTok might be banned from the United States. In this episode, hear testimony from TikTok?s CEO and judge for yourself if you think the arrangement that TikTok has negotiated with the U.S. government is enough to ensure that the Chinese government will not have the ability to manipulate the app or acquire your data. We also take a detailed look at the bill that would ban TikTok (by granting vast new authorities to the government) and we examine the big picture arena in which TikTok and the RESTRICT Act are merely sideshows. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Shou Chew Katie Canales and Sarah Jackson. Mar 22, 2023. Insider. Monica Aggarwal. March 23, 2023. International Business Times. Chinese Influence Over TikTok Senator Marco Rubio [@SenMarcoRubio]. Mar 29, 2023. Twitter. Forced Sale Chang Che. Mar 23, 2023. The New York Times. Facebook Emma Roth. Nov 28, 2022. The Verge. Taylor Lorenz and Drew Harwell. Mar 30, 2022. The Washington Post. OpenSecrets. OpenSecrets. How the U.S. Has Governed the World Trade System U.S. Government-Corporate Spy Partnerships May 15, 2007. Frontline. Iran Nuclear Deal Nov 23, 2021. BBC News. Venezuela Agence France Presse. Apr 17, 2020. Barron?s. Russia-Ukraine Adam Plowright. Feb 12, 2023. Barron?s. China?s Trade and Currency Agreements Jan van der Made. March 31, 2023. RFI. Jamie Seidel. Mar 31, 2023. news.com.au. Agence France Presse. Mar 29, 2023. Barron?s. Peter A. Petri and Michael Plummer. Nov 16, 2020. Brookings. The Pacific Deterrence Initiative Brad Lendon. Apr 4, 2023. CNN. Sen. Jim Inhofe and Sen. Jack Reed. May 28, 2020. War on the Rocks. Chinese Economy Kristalina Georgieva. Mar 26, 2023. International Monetary Fund. Chinese Authoritarianism James Doubek. Mar 11, 2018. NPR. Jeremy Page and Chun Han Wong. Oct 25, 2017. The Wall Street Journal. Bills Audio Sources March 30, 2023 Fox News Clips Sen. Marco Rubio (R-FL): Brazil - in our hemisphere, largest country in the western hemisphere south of us - cut a trade deal with China. They?re going to, from now on, trade in their own currencies, get right around the dollar. They?re creating a secondary economy in the world totally independent of the United States. We won?t have to talk about sanctions in 5 years because there will be so many countries transacting in currencies other than the dollar that we won?t have the ability to sanction them. March 29, 2023 Twitter March 23, 2023 Fox News Clips Mark Warner: One of the things I always make clear is my beef is with the Communist Party of China. My beef is with Xi Jinping, the Communist Party leader, who treats his own people awfully... and I do think you need to make that distinction. Not about Chinese people. But to deny the authoritarian regime and their record is not based on a factual analysis. March 23, 2023 House Committee on Energy and Commerce Witness: Shou Chew, CEO, TikTok Clips 7:15 Rep. Cathy McMorris Rodgers (R-WA): TikTok collects nearly every data point imaginable, from people's location, to what they type and copy, who they talk to, biometric data, and more. Even if they've never been on Tik Tok, your trackers are embedded in sites across the web. Tik Tok surveys us all, and the Chinese Communist Party is able to use this as a tool to manipulate America as a whole. We do not trust Tik Tok will ever embrace American values; values for freedom, human rights, and innovation. Tik Tok has repeatedly chosen the path for more control, more surveillance, and more manipulation. Your platform should be banned. 15:25 Rep. Frank Pallone (D-NJ): National security experts are sounding the alarm, warning that the Chinese Communist government could require TikTok to compromise device security, maliciously access American user data, promote pro-Communist propaganda, and undermine American interests. Disinformation campaigns could be launched by the by the Chinese Communist government through TikTok, which has already become rife with misinformation and disinformation, illegal activities, and hate speech. A recent report found that 20% of TikTok search results on prominent news topics contain misinformation. 20:35 Shou Chew: Let me start by addressing a few misconceptions about ByteDance, of which we are a subsidiary. ByteDance is not owned or controlled by the Chinese government. It is a private company. 60% of the company is owned by global institutional investors, 20% is owned by the founder, and 20% owned by employees around the world. ByteDance has five board members, three of them are American. Now TikTok itself is not available in mainland China. We're headquartered in Los Angeles and in Singapore, and we have 7000 employees in the US today. 21:50 Shou Chew: The bottom line is this: American data stored on American soil by an American company overseen by American personnel. We call this initiative Project Texas. That's where Oracle is headquartered. Today, U.S. TikTok data is stored by default in Oracle's service. Only vetted personnel operating in a new company called TikTok U.S. Data Security can control access to this data. Now, additionally, we have plans for this company to report to an independent American board with strong security credentials. Now, there's still some work to do. We have legacy U.S. data sitting in our servers in Virginia and in Singapore. We're deleting those and we expect that to be completed this year. When that is done, all protected U.S. data will be under the protection of US law and under the control of the U.S.-led security team. This eliminates the concern that some of you have shared with me that TikTok user data can be subject to Chinese law. 22:55 Shou Chew: We also provide unprecedented transparency and security for the source code for the TikTok app and recommendation engine. Third party validators like Oracle and others will review and validate our source code and algorithms. This will help ensure the integrity of the code that powers what Americans see on our app. We will further provide access to researchers, which helps them study and monitor our content ecosystem. Now we believe we are the only company that offers this level of transparency. 23:35 Shou Chew: The potential security, privacy, [and] content manipulation concerns raised about TikTok are really not unique to us. The same issues apply to other companies. We believe what's needed are clear, transparent rules that apply broadly to all tech companies. Ownership is not at the core of addressing these concerns. 24:20 Shou Chew: TikTok will remain a place for free expression and will not be manipulated by any government. 27:30 Rep. Cathy McMorris Rodgers (R-WA): Have any moderation tools been used to remove content on TikTok associated with the Uyghur genocide? Yes or no? Shou Chew: We do not remove that kind of content. Tik Tok is a place for freedom of expression. Chairwoman, just like I said, if you use our app, you can go on it and you will see a lot of users around the world expressing content on that topic and many others. Rep. Cathy McMorris Rodgers (R-WA): Thank you. What about the massacre in Tiananmen Square? Yes or no? Shou Chew: I'm sorry, I didn't hear the question. Rep. Cathy McMorris Rodgers (R-WA): The massacre in Tiananmen Square. Shou Chew: That kind of content is available on our platform. You can go and search it. 28:05 Rep. Cathy McMorris Rodgers (R-WA): I will remind you that making false or misleading statements to Congress is a federal crime. 28:15 Rep. Cathy McMorris Rodgers (R-WA): Can you say with 100% certainty that ByteDance or the CCP cannot use your company or its divisions to heat content to promote pro-CCP messages for an act of aggression against Taiwan. Shou Chew: We do not promote or remove content at the request of the Chinese government. Rep. Cathy McMorris Rodgers (R-WA): The question is, are you 100% certain that they cannot use your company to promote such messages? Shou Chew: It is our commitment to this committee and all users that we will keep this free from any manipulation by any government. 39:10 Shou Chew: Congressman, since I've been CEO of this company I've not had any discussions with Chinese government officials. 43:55 Rep. Anna Eshoo (D-CA): The Chinese government has that data. How can you promise that that will move into the United States of America and be protected here? Shou Chew: Congresswoman, I have seen no evidence that the Chinese government has access to that data. They have never asked us; we have not provided it. I've asked that -- Rep. Anna Eshoo (D-CA): Well, you know what, I find that actually preposterous. Shou Chew: I have looked and I have seen no evidence of this happening. And in order to assure everybody here and all our users, our commitment is to move the data into the United States to be stored on American soil, by an American company, overseen by American personnel. So the risk will be similar to any government going to an American company asking for data. 44:40 Rep. Anna Eshoo (D-CA): Well I'm one that doesn't believe that there is really a private sector in China. 54:55 Rep. Diana DeGette (D-CO): So I want to know from you, and I will give you time to answer this. You have current controls, but the current controls are not working to keep dosinformation mainly from young people, but from Americans in general. What more is is TikTok doing to try to strengthen its review to keep disinformation from coming across to people. Shou Chew: Thank you for the question, Congresswoman. The dangerous misinformation that you mentioned is not allowed on our platform. It violates the -- Rep. Diana DeGette (D-CO): I'm sorry to report it is on your platform, though. Shou Chew: Congresswoman, I don't think I can sit here and say that we are perfect in doing this. We do work very hard. Rep. Diana DeGette (D-CO): How can you make yourself more perfect? I don't want you to say it's not there or you apologize. What can you do to limit it as much as possible, more than what you're doing now? Shou Chew: We invest a significant amount in our content moderation work. I shared that number in my written testimony -- Rep. Diana DeGette (D-CO): I know you're investing, but what steps are you taking to improve the AI, or whatever else you're doing, to limit this content? Shou Chew: For example, if you search for certain search terms, we do direct you on TikTok to safety resources. That's one of the things we have done. We will continue to invest in this I recognize and fully aligned with you that this is a problem that faces our industry that we need to really invest and address this. I'm very in alignment. 1:07:05 Rep. Jan Schakowsky (D-IL): Does TikTok share user information from companies...from parent companies...from affiliated...or send user information to...overseas? Shou Chew: In the past, yes, for interoperability purposes. Now, after Project Texas, all protected U.S. data will be stored here with the access controlled by a special team of U.S. personnel. 1:07:55 Rep. Jan Schakowsky (D-IL): I do want a quote from employees that you had, and here's the quote, "everything is seen in China" is really what they said. People who were in touch with the sensitive data were saying that. How do you respond to that? Shou Chew: I disagree with that statement. Rep. Jan Schakowsky (D-IL): Well, I know you disagree with that statement. But my point is, how does that happen that employees of the company are saying that in fact, that's not true. Shou Chew: I cannot speak to, I don't know who this person is, so I cannot speak to what the person has or has not said. What I can say is, you know, based on my position in this company, and the responsibility that I have, that statement is just not true. 1:11:00 Rep. Kat Cammack (R-FL): Yes or no, ByteDance is required to have a member of the Chinese government on its board with veto power, is that correct? Shou Chew: No, that is not correct. ByteDance owns some Chinese businesses and you're talking about this very special subsidiary that is for Chinese business license -- Rep. Kat Cammack (R-FL): Mr. Chew, I'm gonna have to move on. 1:19:20 Shou Chew: First, anything that is violated and harmful, we remove. What I meant to say were [sic] content that is not inherently inherently harmful, like some of the extreme fitness videos about people running 100 miles, is not inherently harmful, but if we show them too much, the experts are telling us that we should disperse them more and make sure that they're not seen too regularly, especially by younger users. 1:33:20 Rep. Bill Johnson (R-OH): Do you realize that making false and misleading statements to Congress is a federal crime? Shou Chew: Yes, I do. Rep. Bill Johnson (R-OH): Okay. 1:39:35 Shou Chew: We do want to be leading in terms of safety of our users, particularly for teenagers. We were the first to launch a 60 minute watch limit. Rep. John Sarbanes (D-MD): And let's talk about the 60 Minute -- Shou Chew: And I'm very glad to see others in our industry follow. For many of the recommendations, we will study them very seriously. We actually have a series of features. Like for example, if you're under 16, you cannot use a direct messaging feature, because we know we want to protect those younger users. If you're under 16, you cannot go viral by default. If you're under 18, you cannot go live. 1:48:20 Rep. Paul Tonko (D-NY): Will you continue to get information from these third parties on its users health? Shou Chew: Get information? We do not get any user health information from third parties. 1:56:20 Shou Chew: The American data has always been stored in Virginia and Singapore in the past. And access of this is on an as required basis by engineers globally ? Rep. Tim Walberg (R-SC): As required by who? Shou Chew: By engineers, for business purposes -- Rep. Tim Walberg (R-SC): Engineers? ByteDance? The Communist Party? Shou Chew: No, no. Rep. Tim Walberg (R-SC): Why? How can you say that if they have access -- Shou Chew: This is a business. This is a private business, and like many other businesses, many other American companies, we rely on the global workforce. Rep. Tim Walberg (R-SC): So the global workforce, that includes ByteDance, which is connected directly to the Chinese Communist Party. Shou Chew: That is a mischaracterization that we disagree with. Now, in the future -- Rep. Tim Walberg (R-SC): That's not what we can disagree with. That's a fact. Shou Chew: It's not, unfortunately. Rep. Tim Walberg (R-SC): The CEO of ByteDance and your relationship to them. Shou Chew: Congressman, respectfully, in my opening statement, I said this is a private company, it's owned 60% by global investors. Three out of the five board members on ByteDance are Americans. This is a private business Rep. Tim Walberg (R-SC): You report directly to ByteDance, with a CEO who is a member of Communist Party. Let me move on ? Shou Chew: He is not. Rep. Tim Walberg (R-SC): -- I think we got the answer. 2:07:20 Shou Chew: We do not collect body, face, or voice data to identify our users. We do not -- Rep. Buddy Carter (R-GA): You don't? Shou Chew: No, the only face data that you get that we collect is when you use the filters to have sunglasses on your face. We need to know where your eyes are -- Rep. Buddy Carter (R-GA): Why do you need to know what the eyes are if you're not seeing if they're dilated? Shou Chew: -- and that data is stored on your local device and deleted after use if you use it for facial. Again, we do not collect body, face, or voice data to identify users. Rep. Buddy Carter (R-GA): I find that hard to believe. 2:30:20 Rep. Gary Palmer (R-AL): When the Chinese Communist government bought a share ByteDance, it's been described as the Chinese Communist Government's way of quieter form of control, and that companies have little choice in selling a stake to the government if they want to stay in business, and what I'd like to know is when the Chinese Communist government moved to buy shares of ByteDance, were you informed beforehand, yes or no? Shou Chew: No, Congressman, ByteDance -- Rep. Gary Palmer (R-AL): Were you or anyone with TikTok asked for your opinion about the sale of shares of ByteDance to the Chinese Communist government? Yes or no? Shou Chew: It just, this hasn't happened. 2:34:55 Rep. Debbie Dingell (D-MI): Mr. Chew, have any prior versions of TikTok's app collected precise GPS information from us users, yes or no? Shou Chew: Yes. From back in 2020, about three years ago. Rep. Debbie Dingell (D-MI): Are there currently TikTok users who still hold old versions of the app that collect precise GPS information from U.S. users? Yes or no? Shou Chew: That could be, but that's a small percentage. 2:36:05 Rep. Debbie Dingell (D-MI): Has TikTok, at any time, sold precise GPS information collected from U.S. users? Yes or no? Shou Chew: We do not sell data to data brokers if that's the question. Rep. Debbie Dingell (D-MI): And you've never done that? Shou Chew: I do not believe so. 2:37:15 Rep. Debbie Dingell (D-MI): Has TikTok, at any time, provided the Chinese government with either precise GPS information collected from U.S. users or inferences made from that data? Shou Chew: That I can give you a straight answer: no. 2:37:30 Rep. Debbie Dingell (D-MI): Mr. Chew, even in Congress, even if Congress were to ban Tiktok, I'm concerned that China or others would still have access to US consumer data by purchasing it through data brokers. Will you commit not to sell any of TikTok's data to data brokers now or in the future? Shou Chew: We do not do that. We do not sell data to data brokers now. Rep. Debbie Dingell (D-MI): Will you commit to not do it in the future? Shou Chew: This is -- certain members of industry who do this. I think this has to be broad legislation to help us, the whole industry, address this problem. 3:13:15 Rep. Debbie Lesko (R-AZ): A March 21, Forbes article revealed how troves of personal data of Indian citizens who once used TikTok remained widely accessible to employees at the company and its Beijing based parent ByteDance. A current TikTok employee told Forbes that nearly anyone with basic access to company tools, including employees in China, can easily look up the closest contacts and other sensitive information about any user. This current TikTok employee also said, "If you want to start a movement, if you want to divide people, if you want to do any of the operation to influence the public on the app, you can just use that information to target those groups." Mr. Chew, why would a current TikTok employee say this if it wasn't true? Shou Chew: This is a recent article, I have asked my team to look into it. As far as I know there is, we have rigorous data access protocols. There's really no such thing where anybody can get access to tools. Rep. Debbie Lesko (R-AZ): Alright. Shou Chew: So I disagree with a lot of the conclusions of that. 3:18:20 Rep. Darren Soto (D-FL): So Mr. Chew, would TikTok be prepared to divest from ByteDance and Chinese Communist Party ties if the Department of Treasury instructed you all to do so? Shou Chew: Congressman, I said in my opening statement, I think we need to address the problem of privacy. I agree with you. I don't think ownership is the issue here, with a lot of respect. American social companies don't have a good track record with data privacy and user security. I mean, look at Facebook and Cambridge Analytica, just one example. So I do think that you know, it is not about the ownership, it is a lot about making sure we have Project Texas, making sure that we're protecting and firewalling U.S. user data from unwanted foreign access, giving third parties to come in to have a look at this and making sure that everybody is comfortable. We're giving transparency and third party monitoring and that's what we're doing for Project Texas. 4:24:15 Shou Chew: Congressman, we have only one process of removing content on our platform and the process is done by our content moderation team headquartered in Ireland and the US, and we will only remove content that violates our guidelines, and that's something that we audit, or if there's a valid legal order. 4:26:05 Rep. Randy Weber (R-TX): Here are my concerns with TikTok. Your claims are hard to believe. It's no secret to us that TikTok is still under the thumb of CCP influence and, let's be honest, TikTok is indoctrinating our children with divisive, woke, and pro-CCP propaganda. 4:27:15 Rep. Randy Weber (R-TX): Should we plan to have a committee hearing every time, every day, every time there's something brought up so that we can limit the content on TikTok? Should Congress plan to do that Mr. Chew? Rep. Raul Ruiz (D-CA): Almost 30% of the videos that came up contained misinformation...a high level of misinformation...misinformation...disinformation...misleading information...harmful misinformation...misinformation...misinformation. Why are these dangerous videos falling through the cracks of your company's efforts to enforce its own community guidelines and remove harmful misinformation? 4:30:20 Shou Chew: Yes, any dangerous misinformation is...we partner with third party experts to be able to identify and help us with subject domain expertise. And with their expertise that we recognize, we rely on those to develop policies to recognize and remove could be -- Rep. Raul Ruiz (D-CA): Well, your efforts I have failed, and they're dangerous. 4:33:10 Shou Chew: I can get back to you on the specifics, but dangerous misinformation is moderated regardless of language. Rep. Raul Ruiz (D-CA): Not to the degree that it needs to be. 4:58:40 Rep. August Pfluger (R-TX): Are keystroke patterns and rhythms part of TikTok gathering the data that is gathered by TikTok? Shou Chew: If you're talking, Congressman, specifically about keystrokes, you know, we do not. We do not engage in keystroke logging to monitor what the users say. It's to identify bots for security purposes, and this is a standard industry practice. 5:24:30 Rep. Dan Crenshaw (R-TX): Here's the main point of concern: China's 2017 National Intelligence law states very clearly, that, "any organization or citizen shall support, assist and cooperate with state intelligence work in accordance with the law and maintain the secrecy of all knowledge of state intelligence work." In other words, ByteDance, and also your TikTok employees that live in China, they must cooperate with Chinese intelligence whenever they are called upon. And if they are called upon, they're bound to secrecy. That would include you. So Mr. Chew, if the CCP tells ByteDance to turn over all data that TikTok has collected inside the US, even within Project Texas, do they have to do so according to Chinese law? Shou Chew: Congressman, first, I'm Singaporean. Rep. Dan Crenshaw (R-TX): That's fine. But there are employees of yours and ByteDance's in China. Shou Chew: We understand this concern. In my opening statement, we said we hear these concerns, we didn't try to avoid them or you know, trivialize them, we built something where we take the data and put it out of reach. This is what we did, we put it out of reach. Rep. Dan Crenshaw (R-TX): But they own you. Shou Chew: No, we put it out of reach by -- Rep. Dan Crenshaw (R-TX): ByteDance owns Tiktok and the CCP owns ByteDance, because the CCP owns everybody in China. So by law, they can make them do whatever they want. And they say that by law, you can't tell anyone about it. So they can make you hand over that data is that correct? Shou Chew: Data is stored here in American soil, by an American company overseen by American -- Rep. Dan Crenshaw (R-TX): Leaked audio from 80 internal TikTok meeting shows that US user data has been repeatedly accessed from China, when you said it hasn't been. And here's the other thing, following back on my colleagues line of questioning. In your own privacy policy, it says that you may share information within your so called "Corporate Group" is ByteDance part of that corporate group? Shou Chew: If you're talking about the share of the entity with the share, like I shared with the previous -- Rep. Dan Crenshaw (R-TX): Is ByteDance part of the corporate group? Shou Chew: ByteDance, as a holding company, is part of the corporate group, yes. Rep. Dan Crenshaw (R-TX): Part of the corporate group. Okay, so your own privacy policy says you have to share data with ByteDance. And if the CCP says, Hey ByteDance, you're going to do what we say and you can't tell anyone about it because by law, according to that 2017 National Intelligence law, they have to do it. That's our concern. 5:26:50 Rep. Dan Crenshaw (R-TX): Okay, so my last point is this, I want to say this to all the teenagers out there, and the TikTok influencers who think we're just old and out of touch and don't know what we're talking about, trying to take away your favorite app. You may not care that your data is being accessed now, but it will be one day when you do care about it. And here's the real problem: with data comes power. They can choose what you see and how you see it. They can make you believe things that are not true. They can encourage you to engage in behavior that will destroy your life. Even if it is not happening yet, it could in the future. The long term goal of the Chinese Communist Party is the demise of the American power, and that starts with our youth. At any moment, they could demand that all of TikTok's data be used to design an AI algorithm with the sole purpose of promoting Chinese interests and destroying our society from within. You want to know why Democrats and Republicans have come together on this? That's why we are so concerned. 2:07:55 Rep. Buddy Carter (R-GA): How do you determine what age they are then? Shou Chew: We rely on age-gating as our key age assur-- Rep. Buddy Carter (R-GA): Age...? Shou Chew: -gating, which is when you ask the user what age they are. We have also developed some tools where we look at their public profile to go through the videos that they post to see whether-- Rep. Buddy Carter (R-GA): Well that's creepy. Tell me more about that. Shou Chew: It's public. So if you post a video [and] you choose that video to go public, that's how you get people to see your video. We look at those to see if it matches up the age that you told. February 7, 2023 House Committee on Financial Services Witnesses: Former Senior Director for International Economics and Competitiveness, National Security Council and National Economic Council Clips Rep. David Scott (D-GA): I am deeply concerned with the fast growing possibility of a China-led world order. That includes the Chinese military controlling the South Pacific trade route because the South Pacific trade war is now the lifeline of the entire global economy. Peter E. Harrell: I think it's important that we all, as we think about China policy, we all recognize that China, though a serious competitor, and by far our most significant economic competitor, is not 10 feet tall. It's not some sort of mythical beast that we cannot out-compete. I think you've highlighted a couple of the reasons, Congresswoman, why that's the case. They do have high levels of debt. They also have serious long term demographic problems, coming to having a shrinking working age population. Rep. William Timmins (R-SC): The question is what are we going to do to get China to reform their behavior and compete in the global economy and be good actors in the global economy. That's the question. February 1, 2023 Committee on Energy and Commerce, Subcommittee on Innovation, Data, and Commerce Witnesses: Samm Sacks, Senior Fellow, New America & Senior Fellow, Yale Law School Paul Tsai China Center Clips Samm Sacks: I mean, to be honest, I think that the grading profiles based on aggregate data is primarily a counterintelligence concern for individuals with national security clearances and the military or access to sensitive information for your average American what that what the impact would probably be more in terms of would that population or individual preference information could that be used to push information that would make say, a spear phishing attack more appealing it might be more likely that someone would would be a would click on a link because it appealed to them based on information that was collected? And so I would say it's, I would look at it from that angle. But why highlighted in my testimony, the more sort of far reaching impact is on economic competitiveness, which is a distinct issue, right? It's on Chinese firms who are able to access diverse international data sets beyond China. What that allows them to do is train AI models that could be more competitive in markets outside of China, where they're competing head to head with US firms. So I would bucket the risk. You have national security issues. You also have missed it targeted misinformation that could be used from that, as well as economic competitiveness between us and Chinese firms. And it's important to sort of be clear about those distinct buckets of risk. Samm Sacks: I guess I'll start with the TikTok issue. But you know, I think that there are two important issues on the table. One is data security, who has access to what, and the other is the potential to push misinformation online, the recommendation algorithm. My understanding is that there is a national security agreement on the table. You know, from a data security standpoint, if Oracle has the data in the cloud, there are multiple third party auditors and an oversight board that reports to CFIUS, I think that that would be pretty much locked down. The question around what kind of information the recommendation system pushes forward is an important one. And that also under this agreement -- it's called Project Texas and I've published about it just a week or so ago -- would be again, subject to verification, source code reviewed, essentially vetted by CFIUS. I think it's important that the public understand what that national security agreement would look like and then have a debate. Is this enough to address those concerns? And to what extent would other social media companies also need to meet them? Music Presented in This Episode by
2023-04-09
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CD270: The Twitter Files

The First Amendment prohibits the U.S. government from censoring speech. In this episode, drawing from internal Twitter documents known as ?the Twitter files? and Congressional testimony from tech executives, former Twitter employees, and journalists, we examine the shocking formal system of censorship in which government employees are using their influence over private companies to indirectly censor speech in a way that they are clearly prohibited from doing directly. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Twitter Files Matt Taibbi. Jan 4, 2023. Racket News. Matt Taibbi Matt Taibbi. Mar 12, 2023. Racket News. Feb 13, 2023. The Joe Rogan Experience. Hunter Biden Laptop Story [tweet]. Michael Shellenberger [@ShellenbergerMD]. Dec 19, 2022. Twitter. Influence, Propaganda, and Censorship Alex Berenson. Jan 9, 2023. Unreported Truths. Lee Fang. December 20, 2022. The Intercept. Aug 24, 2022. The Washington Post. Audio Sources March 9, 2023 House Judiciary Committee, Subcommittee on the Weaponization of the Federal Government Witnesses: Matt Taibbi, Journalist Michael Shellenberger, Author, Co-founder of the Breakthrough Institute and the California Peace Coalition Clips 17:20 Rep. Jim Jordan (R-OH): In the run up to the 2020 Presidential election, FBI Special Agent Elvis Chan, in his deposition in Missouri versus Biden, said that he repeatedly, repeatedly, informed Twitter and other social media platforms of the likelihood of a hack and leak operation in the run up to that Presidential election. He did it even though there was no evidence. In fact, he said in his deposition that we hadn't seen anything, no intrusions, no hack, yet he repeatedly told them something was common. Yoel Ross, Head of Trust and Safety at Twitter, testified that he had had regular meetings with the Office of the Director of National Intelligence, the Department of Homeland Security, the FBI, and other folks regarding election security. During these weekly meetings, federal law enforcement agencies communicated that they expected a hack and leak operation. The expectations of a hack and leak operation were discussed throughout 2020. And he was told they would occur in a period shortly before the 2020 Presidential election, likely in October. And finally, he said "I also learned in these meetings, that there were rumors that a hack and leak operation would involve Hunter Biden." So what did the government tell him? A hack and leak operation was coming. How often did the government tell him this? Repeatedly for a year. When did the government say it was going to happen? October of 2020. And who did the government say it would involve? Hunter Biden. 19:35 Rep. Jim Jordan (R-OH): How did they know? Maybe it's because they had the laptop and they had had it for a year. 21:50 Rep. Jim Jordan (R-OH): Finally, as if on cue, five days later on October 19, 51 former intel[ligence] officials signed a letter with a now famous sentence "the Biden laptop story has all the classic earmarks of a Russian information operation." Something that was absolutely false. 25:25 Rep. Stacey Plaskett (D-VI): And the Republicans have brought in two of Elon Musk's public scribes to release cherry-picked, out-of-context emails and screenshots designed to promote his chosen narrative, Elon Musk's chosen narrative, that is now being paroted by the Republicans, because the Republicans think that these witnesses will tell a story that's going to help them out politically. 25:50 Rep. Stacey Plaskett (D-VI): On Tuesday, the majority released an 18 page report claiming to show that the FTC is quote, "harassing" Twitter -- oh my poor Twitter -- including by seeking information about its interactions with individuals before us today. How did the report reach this conclusion? By showing two single paragraphs from a single demand letter, even though the report itself makes clear that there were numerous demand letters with numerous requests, none of which we've been able to see, that are more demand letters and more requests of Twitter. 28:05 Rep. Stacey Plaskett (D-VI): Mr. Chairman, Americans can see through this. Musk is helping you out politically and you're going out of your way to promote and protect him and to praise him for his work. 28:15 Rep. Stacey Plaskett (D-VI): This isn't just a matter of what data was given to these so-called journalists before us now. 31:35 Rep. Stacey Plaskett (D-VI): Mr. Chairman, I'm not exaggerating when I say that you have called before you two witnesses who pose a direct threat to people who oppose them. 32:30 Rep. Stacey Plaskett (D-VI): We know this is because at the first hearing, the Chairman claimed that big government and big tech colluded to shape and mold the narrative and suppress information and censor Americans. This is a false narrative. We're engaging in false narratives here and we are going to tell the truth. 37:35 Michael Shellenberger: I recognize that the law allows Facebook, Twitter, and other private companies to moderate content on their platforms and I support the right of governments to communicate with the public, including to dispute inaccurate information, but government officials have been caught repeatedly pushing social media platforms to censor disfavored users and content. Often these acts of censorship threaten the legal protection social media companies need to exist, Section 230. If government officials are directing or facilitating such censorship, and as one law professor, it raises serious First Amendment questions. It is axiomatic that the government cannot do indirectly what it is prohibited from doing directly. 41:50 Matt Taibbi: My name is Matt Taibbi, I've been a reporter for 30 years and a staunch advocate of the First Amendment. Much of that time was spent at Rolling Stone magazine. Ranking Member Plaskett, I'm not a "so-called" journalist. I've won the National Magazine Award, the I.F Stone Award for Independent Journalism, and I've written 10 books, including four New York Times bestsellers. 45:35 Matt Taibbi: Ordinary Americans are not just being reported to Twitter for deamplification or deplatforming, but to firm's like Pay Pal, digital advertisers like Xandr, and crowdfunding sites like GoFundMe. These companies can and do refuse service to law abiding people and businesses whose only crime is falling afoul of a distant, faceless, unaccountable, algorithmic judge. 44:00 Matt Taibbi: Again, Ranking Member Plaskett, I would note that the evidence of Twitter-government relationship includes lists of tens of thousands of names on both the left and right. The people affected include Trump supporters, but also left leaning sites like Consortium and Truthout, the leftist South American channel TeleSUR, the Yellow Vest movement. That, in fact, is a key point of the Twitter files, that it's neither a left nor right issue. 44:40 Matt Taibbi: We learned Twitter, Facebook, Google and other companies developed a formal system for taking in moderation requests from every corner of government from the FBI, the DHS, the HHS, DOD, the Global Engagement Center at [the Department of] State, even the CIA. For every government agency scanning Twitter, there were perhaps 20 quasi private entities doing the same thing, including Stanford's Election Integrity Partnership, Newsguard, the Global Disinformation Index, and many others, many taxpayer funded. A focus of this fast growing network, as Mike noted, is making lists of people whose opinions beliefs, associations, or sympathies are deemed misinformation, disinformation or malinformation. That last term is just a euphemism for true but inconvenient. Undeniably, the making of such lists is a form of digital McCarthyism. 1:01:00 Matt Taibbi: So, a great example of this is a report that the Global Engagement Center sent to Twitter and to members of the media and other platforms about what they called "the Pillars of Russian Disinformation." Now, part of this report is what you would call, I think you would call, traditional hardcore intelligence gathering where they made a reasoned, evidence baseed case that certain sites were linked to Russian influence or linked to the Russian government. In addition to that, however, they also said that sites that quote, "generate their own momentum," and have opinions that are in line with those accounts are part of a propaganda ecosystem. Now, this is just another word for guilt by association. And this is the problem with the whole idea of trying to identify which accounts are actually the Internet Research Agency and which ones are just people who follow those accounts or retweeted them. Twitter initially did not find more than a handful of IRA accounts. It wasn't until they got into an argument with the Senate Select Intelligence Committee that they came back with a different answer. 1:06:00 Rep. Debbie Wasserman-Schultz (D-FL): Before you became Elon Musk's handpicked journalists, and pardon the oxymoron, you stated this on Joe Rogan's podcast about being spoon fed information. And I quote, "I think that's true of any kind of journalism," and you'll see it behind me here. "I think that's true of any kind of journalism. Once you start getting handed things, then you've lost. They have you at that point and you got to get out of that habit. You just can't cross that line." Do you still believe what you told Mr. Rogan? Yes or no? Yes or no? Matt Taibbi: Yes. Rep. Debbie Wasserman-Schultz (D-FL): Good. Now, you crossed that line with the Twitter files. Matt Taibbi: No. Rep. Debbie Wasserman-Schultz (D-FL): Elon Musk -- It's my time, please do not interrupt me. Crowd: [laughter] Rep. Debbie Wasserman-Schultz (D-FL): Elon Musk spoon fed you his cherry-picked information, which you must have suspected promotes a slanted viewpoint, or at the very least generates another right wing conspiracy theory. 1:11:20 Matt Taibbi: That moment on the Joe Rogan show, I was actually recounting a section from Seymour Hersh's book, Reporter, where he described a scene where the CIA gave him a story and he was very uncomfortable. He said that "I, who had always gotten the secrets, was being handed the secrets." Again, I've done lots of whistleblower stories. There's always a balancing test that you make when you're given material, and you're always balancing newsworthiness versus the motives of your sources. In this case, the newsworthiness clearly outweighed any other considerations. I think everybody else who worked on the project agrees. 1:14:45 Rep. Dan Bishop (R-NC): Richard Stengel, you know who that is? Matt Taibbi: Yes, he's the former, the first head of the Global Engagement Center. Rep. Dan Bishop (R-NC): I want the American people to hear from him for 30 seconds. Richard Stengel: Basically, every country creates their own narrative story. And, you know, my old job at the State Department was what people used to joke as the "chief propagandist" job. We haven't talked about propaganda. Propaganda. I'm not against propaganda. Every country does it, and they have to do it to their own population. 1:24:20 Rep. Jim Jordan (R-OH): December 13, the very first letter that the FTC sends to Twitter after the Twitter files, 11 days after the first Twitter file, there have been five of them come out, the FTC's first demand in that first letter after the Twitter files come out is identify all journalists. I'm quoting "identify all journalists and other members of the media" to whom Twitter worked with. You find that scary, Mr. Taibbi, that you got a federal government agency asking a private company who in the press are you talking with? Matt Taibbi: I do find it scary. I think it's none of the government's business which journalists a private company talks to and why. I think every journalist should be concerned about that. And the absence of interest in that issue by my fellow colleagues in the mainstream media is an indication of how low the business has sunk. There was once a real esprit de corps and camaraderie within Media. Whenever one of us was gone after, we all kind of rose to the challenge and supported -- Rep. Jim Jordan (R-OH): It used to be, used to be the case. Matt Taibbi: Yeah, that is gone now. 1:28:50 Rep. Stacey Plaskett (D-VI): How many emails did Mr. Musk give you access to? Michael Shellenberger: I mean, we went through thousands of emails. Rep. Stacey Plaskett (D-VI): Did he give you access to all of the emails for the time period in which? Michael Shellenberger: We never had a single, I never had a single request denied. And not only that, but the amount of files that we were given were so voluminous that there was no way that anybody could have gone through them beforehand. And we never found an instance where there was any evidence that anything had been taken out. Rep. Stacey Plaskett (D-VI): Okay. So you would believe that you have probably millions of emails and documents, right? That's correct, would you say? Michael Shellenberger: I don't know if -- I think the number is less than that. Matt Taibbi: Millions sounds too high. Rep. Stacey Plaskett (D-VI): Okay. 100,000? Matt Taibbi: That's probably closer. Michael Shellenberger: Probably, yeah. Rep. Stacey Plaskett (D-VI): So 100,000 that both of you were seeing. 1:37:10 Matt Taibbi: There were a couple of very telling emails that wepublished. One was by a lawyer named [Sasha Cardiel???], where the company was being so overwhelmed by requests from the FBI and in fact they, they gave each other a sort of digital High Five after one batch, saying "that was a monumental undertaking to clear all of these," but she noted that she believed that the FBI was essentially doing word searches keyed to Twitter's Terms of Service, looking for violations of the Terms of Service, specifically so that they could make recommendations along those lines, which we found interesting. 1:48:15 Michael Shellenberger: And we haven't talked about Facebook, but we now know that we have the White House demanding that Facebook take down factual information and Facebook doing that. 1:48:25 Michael Shellenberger: And with Matt [Taibbi]'s thread this morning we saw the government contractors demanding the same thing of Twitter: accurate information, they said, that needed to be taken down in order to advance a narrative. 1:49:55 Matt Taibbi: You know, in conjunction with our own research, there's a foundation, the Foundation for Freedom Online, which, you know, there's a very telling video that they uncovered where the Director of Stanford's Election Integrity Partnership (EIP) talks about how CISA, the DHS agency, didn't have the capability to do election monitoring, and so that they kind of stepped in to "fill the gaps" legally before that capability could be amped up. And what we see in the Twitter files is that Twitter executives did not distinguish between DHS or CISA and this group EIP, for instance, we would see a communication that said, from CISA, escalated by EIP. So they were essentially identical in the eyes of the company. EIP is, by its own data, and this is in reference to what you brought up, Mr. Congressman, according to their own data, they significantly targeted more what they call disinformation on the right than on the left, by a factor I think of about ten to one. And I say that as not a Republican at all, it's just the fact of what we're looking at. So yes, we have come to the realization that this bright line that we imagine that exists between, say the FBI or the DHS, or the GEC and these private companies is illusory and that what's more important is this constellation of kind of quasi private organizations that do this work. 1:52:10 Rep. Sylvia Garcia (D-TX): What was the first time that Mr. Musk approached you about writing the Twitter files? Matt Taibbi: Again, Congresswoman that would ? Rep. Sylvia Garcia (D-TX): I just need a date, sir. Matt Taibbi: But I can't give it to you, unfortunately, because this this is a question of sourcing, and I don't give up... I'm a journalist, I don't reveal my sources. Rep. Sylvia Garcia (D-TX): It's a question of chronology. Matt Taibbi: No, that's a question of sourcing ? Rep. Sylvia Garcia (D-TX): Earlier you said that someone had sent you, through the internet, some message about whether or not you would be interested in some information. Matt Taibbi: Yes. And I refer to that person as a source. Rep. Sylvia Garcia (D-TX): So you're not going to tell us when Musk first approached you? Matt Taibbi: Again, Congresswoman, you're asking me, you're asking a journalist to reveal a source. Rep. Sylvia Garcia (D-TX): You consider Mr. Musk to be the direct source of all this? Matt Taibbi: No, now you're trying to get me to say that he is the source. I just can't answer ? Rep. Sylvia Garcia (D-TX): Either he is or he isn't. If you're telling me you can't answer because it's your source, well, then the only logical conclusion is that he is in fact, your source. Matt Taibbi: Well, you're free to conclude that. Rep. Sylvia Garcia (D-TX): Well, sir, I just don't understand. You can't have it both ways. But let's move on because -- Unknown Representative 1: No, he can. He's a journalist. Unknown Representative 2: He can't, because either Musk is the source and he can't talk about it, or Musk is not the source. And if Musk is not the source, then he can discuss [unintelligible] Rep. Jim Jordan (R-OH): No one has yielded, the gentlelady is out of order, you don't get to speak ? Multiple speakers: [Crosstalk] Rep. Jim Jordan (R-OH): The gentlelady is not recognized...[crosstalk]...he has not said that, what he has said is he's not going to reveal his source. And the fact that Democrats are pressuring him to do so is such a violation of the First Amendment. Multiple speakers: [Crosstalk] Rep. Sylvia Garcia (D-TX): I have not yielded time to anybody. I want to reclaim my time. And I would ask the chairman to give me back some of the time because of the interruption. Mr. Chairman, I am asking you, if you will give me the seconds that I lost. Rep. Jim Jordan (R-OH): We will give you that 10 seconds. Rep. Sylvia Garcia (D-TX): Thank you. Now let's talk about another item. When you responded to the ranking member, you said that you had free license to look at everything but yet you yourself posted on your...I guess it's kind of like a web page...I don't quite understand what Substack is, but what I can say is that "in exchange for the opportunity to cover a unique and explosive story, I had to agree to certain conditions." What were those conditions? She asked you that question and you said you had none. But you yourself posted that you had conditions? Matt Taibbi: The conditions, as I've explained multiple times -- Rep. Sylvia Garcia (D-TX): No sir, you have not explained, you told her in response to her question that you had no conditions. In fact, you used the word licensed, that you were free to look at all of them. All 100,000 emails. Matt Taibbi: The question was posed, was I free to to write about ? Rep. Sylvia Garcia (D-TX): Sir, did you have any conditions? Matt Taibbi: The condition was that we publish ? Rep. Sylvia Garcia (D-TX): Sir, did you have any conditions? Yes or no? A simple question. Matt Taibbi: Yes. Rep. Sylvia Garcia (D-TX): All right. Could you tell us what conditions those were? Matt Taibbi: The conditions were an attribution of sources at Twitter and that we break any news on Twitter. Rep. Sylvia Garcia (D-TX): But you didn't break it on Twitter. Did you send the file that you released today to Twitter first? Matt Taibbi: Did I send the...actually I did, yes. Rep. Sylvia Garcia (D-TX): Did you send it to Twitter first? Matt Taibbi: The Twitter files thread? Rep. Sylvia Garcia (D-TX): That was one of the conditions? Yes or no, sir. Matt Taibbi: The Twitter files thread actually did come out first. Rep. Sylvia Garcia (D-TX): But sir, you said earlier that you had to attribute all the sources to Twitter first. What you released today, did you send that to Twitter first? Matt Taibbi: No, no, no, I post I posted it on Twitter Rep. Sylvia Garcia (D-TX): First. First, sir, or did you give it to the Chairman of the Committee or the staff of the Committee first? Matt Taibbi: Well, that's not breaking the story, that's giving...I did give ? Rep. Sylvia Garcia (D-TX): So you gave all the information that you did not give to the Democrats, you gave it to the Republicans first, then you put it on Twitter? Matt Taibbi: Actually, no, the chronology is a little bit confused. Rep. Sylvia Garcia (D-TX): Well then tell us what the chronology was. Matt Taibbi: I believe the thread came out first. Rep. Sylvia Garcia (D-TX): Where? Matt Taibbi: On Twitter Rep. Sylvia Garcia (D-TX): On Twitter. So then you afterwards gave it to the Republicans, and not the Democrats? Matt Taibbi: Yes, because I'm submitting it for the record as my statement. Rep. Sylvia Garcia (D-TX): Did you give it to him in advance? Matt Taibbi: I gave it to them today. Rep. Sylvia Garcia (D-TX): You gave it to them today, but you still have not given anything to the Democrats. Well, I'll move on. 1:57:20 Rep. Sylvia Garcia (D-TX): Now in your discussion, in your answer, you also said that you were invited by a friend, Bari Weiss? Michael Shellenberger: My friend, Bari Weiss. Rep. Sylvia Garcia (D-TX): So this friend works for Twitter, or what is her....? Matt Taibbi: She's a journalist. Rep. Sylvia Garcia (D-TX): Sir, I didn't ask you a question. I'm now asking Mr. Shellenberger a question. Michael Shellenberger: Yes, ma'am, Bari Weiss is a journalist. Rep. Sylvia Garcia (D-TX): I'm sorry, sir? Michael Shellenberger: She's a journalist. Rep. Sylvia Garcia (D-TX): She's a journalist. So you work in concert with her? Michael Shellenberger: Yeah. Rep. Sylvia Garcia (D-TX): Do you know when she first was contacted by Mr. Musk? Michael Shellenberger: I don't know. Rep. Sylvia Garcia (D-TX): You don't know. So you're in this as a threesome? 2:00:10 Michael Shellenberger: Reading through the whole sweep of events, I do not know the extent to which the influence operation aimed at "pre-bunking" the Hunter Biden laptop was coordinated. I don't know who all was involved. But what we saw was, you saw Aspen and Stanford, many months before then, saying don't cover the material in the hack and leak without emphasizing the fact that it could be disinformation. Okay, so they're priming journalists to not cover a future hack and leak in a way that journalists have long been trained to in the tradition of the Pentagon Papers, made famous by the Steven Spielberg movie. They were saying [to] cover the fact that it probably came from the Russians. Then you have the former General Counsel to the FBI, Jim Baker, and the former Deputy Chief of Staff to the FBI, both arriving at Twitter in the summer of 2020, which I find, what an interesting coincidence. Then, when the New York Post publishes its first article on October 14, it's Jim Baker who makes the most strenuous argument within Twitter, multiple emails, multiple messages saying this doesn't look real. There's people, there's intelligence experts, saying that this could be Russian disinformation. He is the most strenuous person inside Twitter arguing that it's probably Russian disinformation. The internal evaluation by Yoel Roth, who testified in front of this committee, was that it was what it looked to be, which was that it was not a result of a hack and leak operation. And why did he think that? Because the New York Post had published the FBI subpoena taking the laptop in December of 2019. And they published the agreement that the computer store owner had with Hunter Biden that gave him permission, after he abandoned the laptop, to use it however he wanted. So there really wasn't much doubt about the provenance of that laptop. But you had Jim Baker making a strenuous argument. And then, of course, you get to a few days after the October 14 release, you have the president of the United States echoing what these former intelligence community officials were saying, which is that it looked like a Russian influence operation. So they were claiming that the laptop was made public by the conspiracy theory that somehow the Russians got it. And basically, they convinced Yoel Roth of this wild hack and leak story that somehow the Russians stole it, got the information, gave us the computer, it was bizarre. So you read that chain of events, and it appears as though there is an organized influence operation to pre-bunk.... Rep. Jim Jordan (R-OH): Why do you think they could predict the time, the method, and the person? Why could the FBI predict it? Not only did they predict this, they predicted it, so did the Aspen Institute, seemed like everyone was in the know saying, here's what's gonna happen, we can read the future. Why do you think, how do you think they were able to do that? Michael Shellenberger: I think the most important fact to know is that the FBI had that laptop in December 2019. They were also spying on Rudy Giuliani when he got the laptop and when he gave it to the New York Post. Now, maybe the FBI agents who are going to Mark Zuckerberg at Facebook and Twitter executives and warning of a hack and leak, potentially involving Hunter Biden, maybe those guys didn't have anything to do with the guys that had the top. We don't know that. I have to say, as a newcomer to this, as somebody that thought it was Russian disinformation in 2020, everybody I knew thought it was Russian disinformation, I was shocked to see that series of events going on. It looks to me like a deliberate influence operation. I don't have the proof of it, but the circumstantial evidence is pretty disturbing. 2:14:30 Matt Taibbi: We found, just yesterday, a Tweet from the Virality Project at Stanford, which was partnered with a number of government agencies, and Twitter, where they talked explicitly about censoring stories of true vaccine side effects and other true stories that they felt encouraged hesitancy. Now the imp? Unknown Representative: So these were true. Matt Taibbi: Yes. So they use the word truth three times in this email, and what's notable about this is that it reflects the fundamental misunderstanding of this whole disinformation complex, anti-disinformation complex. They believe that ordinary people can't handle difficult truths. And so they think that they need minders to separate out things that are controversial or difficult for them, and that's again, that's totally contrary to what America is all about, I think. 2:17:30 Rep. Dan Goldman (D-NY): Of course we all believe in the First Amendment, but the First Amendment applies to government prohibition of speech, not to private companies. 2:33:00 Rep. Dan Goldman (D-NY): And even with, Twitter you cannot find actual evidence of any direct government censorship of any lawful speech. 2:33:20 Rep. Jim Jordan (R-OH): I'd ask unanimous consent to enter into the record the following email from Clarke Humphrey, Executive Office of the Presidency, White House Office, January 23, 2021. That's the Biden Administration. 4:39am: "Hey folks," this goes to Twitter, "Hey folks, wanted..." they used the term Mr. Goldman just used, "wanted to flag the below Tweet, and I'm wondering if we can get moving on the process for having it removed ASAP." 2:35:40 Rep. Mike Johnson (R-LA): He said the First Amendment applies to government censorship of speech and not private companies, but what we're talking about and what the Chairman just illustrated is that what we have here and what your Twitter files show is the Federal government has partnered with private companies to censor and silence the speech of American citizens. 2:29:20 Matt Taibbi: In the first Twitter files, we saw an exchange between Representative Ro Khanna and Vijaya Gadde, where he's trying to explain the basics of speech law in America and she's completely, she seems completely unaware of what, for instance, New York Times v. Sullivan is. There are other cases like Bartnicki v. Vopper, which legalized the publication of stolen material, that's very important for any journalists to know. I think most of these people are tech executives, and they don't know what the law is around speech and around reporting. And in this case, and in 2016, you are dealing with true material. There is no basis to restrict the publication of true material no matter who the sources and how you get it. And journalists have always understood that and this has never been an issue or a controversial issue until very recently. 2:44:40 Rep. Kat Cammack (R-FL): Would you agree that there was a black list created in 2021? Michael Shellenberger: Sorry, yes, Jay Bhattacharya, the Stanford Professor, who I don't think anybody considers a fringe epidemiologist, was indeed -- I'm sorry, I couldn't, I didn't piece it together -- he was indeed visibility filtered. Rep. Kat Cammack (R-FL): Correct. And so this blacklist that was created, that really was used to de-platform, reduce visibility, create lists internally, where people couldn't even see their profiles, that was used against doctors and scientists who produced information that was contrary to what the CDC was putting out, despite the fact that we now know that what they were publishing had scientific basis and in fact was valid. Michael Shellenberger: Absolutely. And not only that, but these are secret blacklists, so Professor Bhattacharya had no idea he was on it. 43:05 Matt Taibbi: The original promise of the internet was that it might democratize the exchange of information globally. A free internet would overwhelm all attempts to control information flow, its very existence a threat to anti-democratic forms of government everywhere. What we found in the Files was a sweeping effort to reverse that promise and use machine learning and other tools to turn the Internet into an instrument of censorship and social control. Unfortunately, our own government appears to be playing a lead role. We saw the first hints and communications between Twitter executives before the 2020 election, when we read things like "flagged by DHS," or "please see attached report from FBI for potential misinformation." This would be attached to an Excel spreadsheet with a long list of names, whose accounts were often suspended shortly after. February 13, 2023 The Joe Rogan Experience Clips Matt Taibbi: So this is another topic that is fascinating because it hasn't gotten a ton of press. But if you go back all the way to the early 70s, the CIA and the FBI got in a lot of trouble for various things, the CIA for assassination schemes involving people like Castro, the FBI for, you know, COINTELPRO and other programs, domestic surveillance, and they made changes after Congressional hearings, the Church Committee, that basically said the FBI, from now on, you have to have some kind of reason to be following somebody or investigating somebody, you have to have some kind of criminal predicate and we want you mainly to be investigating cases. But after 9/11 they peeled all this back. There was a series of Attorney General memos that essentially re-fashioned what the FBI does, and now they don't have to be doing crimefighting all the time. Now they can be doing basically 100% intelligence gathering all the time. They can be infiltrating groups for no reason at all, not to build cases, but just to get information. And so that's why they're there. They're in these groups, they're posted up outside of the homes of people they find suspicious, but they're not building cases and they're not investigating crimes. It's sort of like Minority Report there, right? It's pre-crime. Matt Taibbi: We see reports in these files of government agencies sending lists of accounts that are accusing the United States of vaccine corruption. Now, what they're really talking about is pressuring foreign countries to not use generic vaccines. Right. And, you know, that's a liberal issue, that's a progressive issue. The progressives want generic vaccines to be available to poor countries, okay? But, you know, you can use this tool to eliminate speech about that if you want too, right? I think that's what they don't get is that the significance is not who [it's used against], the significance is the tool. What is it capable of doing, right? How easily is it employed, and you know, how often is it used? And they don't focus on that. Joe Rogan: Has anything been surprising to you? Matt Taibbi: A little bit. I think going into it, I thought that the relationship between the security agencies like the FBI and the DHS and companies like Twitter and Facebook, I thought it was a little bit less formal. I thought maybe they had kind of an advisory role. And what we find is that it's not that, it's very formalized. They have a really intense structure that they've worked out over a period of years where they have regular meetings. They have a system where the DHS handles censorship requests that come up from the States and the FBI handles international ones, and they all float all these companies and it's a big bureaucracy. I don't think we expected to see that. Matt Taibbi: I was especially shocked by an email from a staffer for Adam Schiff, the Congressperson, the California Congressman. And they're just outright saying we would like you to suspend the accounts of this journalist and anybody who retweets information about this Committee. You know, I mean, this is a member of Congress. Joe Rogan: Yeah. Matt Taibbi: Right? Most of these people have legal backgrounds. They've got lawyers in the office for sure. And this is the House Intelligence Committee. February 8, 2023 House Committee on Oversight and Accountability Witnesses: Vijaya Gadde, Former Chief Legal Officer, Twitter James Baker, Former Deputy General Counsel, Twitter Yoel Roth, Former Global Head of Trust & Safety, Twitter Annika Collier Navaroli, Former Policy Expert for Content Moderation, Twitter Clips 14:50 Rep. Jamie Raskin (D-MD): What's more, Twitter's editorial decision has been analyzed and debated ad nauseam. Some people think it was the right decision. Some people think it was the wrong decision. But the key point here is that it was Twitter's decision. Twitter is a private media company. In America, private media companies can decide what to publish or how to curate content however they want. If Twitter wants to have nothing but Tweets commenting on New York Post articles run all day, it can do that. If it makes such tweets mentioning New York Post never see the light of day they can do that too. That's what the First Amendment means. 16:05 Rep. Jamie Raskin (D-MD): Officially Twitter happens to think they got it wrong about that day or two period. In hindsight, Twitter's former CEO Jack Dorsey called it a mistake. This apology might be a statement of regret about the company being overly cautious about the risks of publishing contents and potentially hacked or stolen materials, or it may reflect craven surrender to a right wing pressure campaign. But however you interpreted the apology just makes the premise of this hearing all the more absurd. The professional conspiracy theorists who are heckling and haranguing this private company have already gotten exactly what they want: an apology. What more do they want? And why does the US Congress have to be involved in this nonsense when we have serious work to do for the American people? 26:20 James Baker: The law permits the government to have complex, multifaceted, and long term relationships with the private sector. Law enforcement agencies and companies can engage with each other regarding, for example, compulsory legal process served on companies, criminal activity that companies, the government, or the public identify, such as crimes against children, cybersecurity threats, and terrorism, and instances where companies themselves are victims of crime. When done properly, these interactions can be beneficial to both sides and in the interest of the public. As you Mr. Chairman, Mr. Jordan, and others have proposed, a potential workable way to legislate in this area may be to focus on the actions of federal government agencies and officials with respect to their engagement with the private sector. Congress may be able to limit the nature and scope of those interactions in certain ways, require enhanced transparency and reporting by the executive branch about its engagements, and require higher level approvals within the executive branch prior to such engagements on certain topics, so that you can hold Senate confirmed officials, for example, accountable for those decisions. In any event, if you want to legislate, my recommendation is to focus first on reasonable and effective limitations on government actors. Thank you, Mr. Chairman. 31:05 Vijaya Gadde: On October 14, 2020, The New York Post tweeted articles about Hunter Biden's laptop with embedded images that looked like they may have been obtained through hacking. In 2018, we had developed a policy intended to prevent Twitter from becoming a dumping ground for hacked materials. We applied this policy to the New York Post tweets and blocked links to the articles embedding those sorts of materials. At no point to Twitter otherwise prevent tweeting, reporting, discussing or describing the contents of Mr. Biden's laptop. People could and did talk about the contents of the laptop on Twitter or anywhere else, including other much larger platforms, but they were prevented from sharing the primary documents on Twitter. Still, over the course of that day, it became clear that Twitter had not fully appreciated the impact of that policy on free press and others. As Mr. Dorsey testified before Congress on multiple occasions, Twitter changed its policy within 24 hours and admitted its initial action was wrong. This policy revision immediately allowed people to tweet the original articles with the embedded source materials, relying on its long standing practice not to retroactively apply new policies. Twitter informed the New York Post that it could immediately begin tweeting when it deleted the original tweets, which would have freed them to retweet the same content again. The New York Post chose not to delete its original tweets, so Twitter made an exception after two weeks to retroactively apply the new policy to the Post's tweets. In hindsight, Twitter should have reinstated the Post account immediately. 35:35 Yoel Roth: In 2020, Twitter noticed activity related to the laptop that at first glance bore a lot of similarities to the 2016 Russian hack and leak operation targeting the DNC, and we had to decide what to do. And in that moment with limited information, Twitter made a mistake. 36:20 Yoel Roth: It isn't obvious what the right response is to a suspected, but not confirmed, cyber attack by another government on a Presidential Election. I believe Twitter erred in this case because we wanted to avoid repeating the mistakes of 2016. 38:41 Annika Collier Navaroli: I joined Twitter in 2019 and by 2020 I was the most senior expert on Twitter's U.S. Safety Policy Team. My team's mission was to protect free speech and public safety by writing and enforcing content moderation policies around the world. These policies include things like abuse, harassment, hate speech, violence and privacy. 41:20 Annika Collier Navaroli: With January 6 and many other decisions, content moderators like me did the very best that we could. But far too often there are far too few of us and we are being asked to do the impossible. For example, in January 2020 after the US assassinated an Iranian General and the US president decided to justify it on Twitter, management literally instructed me and my team to make sure that World War III did not start on the platform. 1:08:20 Rep. Nancy Mace (R-SC): Did the US government ever contact you or anyone at Twitter to censor or moderate certain Tweets, yes or no? Vijaya Gadde: We receive legal demands to remove content from the platform from the US government and governments all around the world. Those are published on a third party website. 1:12:00 Yoel Roth: The number one most influential part of the Russian active measures campaign in 2016 was the hack and leak targeting John Podesta. It would have been foolish not to consider the possibility that they would run that play again. 1:44:45 Yoel Roth: I think one of the key failures that we identified after 2016 was that there was very little information coming from the government and from intelligence services to the private sector. The private sector had the power to remove bots and to take down foreign disinformation campaigns, but we didn't always know where to look without leads supplied by the intelligence community. That was one of the failures highlighted in the Senate Intelligence Committee's report and in the Mueller investigation, and that was one of the things we set out to fix in 2017. Rep. Gerry Connolly (D-VA): On September 8 2019, at 11:11pm, Donald Trump heckled two celebrities on Twitter -- John Legend and his wife Chrissy Teigen -- and referred to them as "the musician John Legend and his filthy mouth wife." Ms. Teigen responded to that email [Tweet] at 12:17am. And according to notes from a conversation with you, Ms. Navaroli's, counsel, your counsel, the White House almost immediately thereafter contacted Twitter to demand the tweet be taken down. Is that accurate? Annika Collier Navaroli: Thank you for the question. In my role, I was not responsible for receiving any sort of request from the government. However, what I was privy to was my supervisors letting us know that we had received something along those lines or something of a request. And in that particular instance, I do remember hearing that we had received a request from the White House to make sure that we evaluated this tweet, and that they wanted it to come down because it was a derogatory statement towards the President. Rep. Gerry Connolly (D-VA): They wanted it to come down. They made that request. Annika Collier Navaroli: To my recollection, yes. Rep. Gerry Connolly (D-VA): I thought that was an inappropriate action by a government official, let alone the White House. But it wasn't Joe Biden, about his son's laptop. It was Donald Trump because he didn't like what Chrissy Teigen had to say about him, is that correct? Annika Collier Navaroli: Yes, that is correct. Rep. Gerry Connolly (D-VA): My, my, my. 1:45:15 Rep. Shontel Brown (D-OH): Mr. Roth, were those communication channels useful to Twitter as they work to combat foreign influence operations? Yoel Roth: Absolutely, I would say they were one of the most essential pieces of how Twitter prepared for future elections. 2:42:35 Rep. Becca Balint (D-VA): Ms. Gadde, did anyone from the Biden campaign or the Democratic National Committee direct Twitter to remove or take action against the New York Post story? Vijaya Gadde: No. 4:15:45 Rep. Kelly Armstrong (R-ND): And now we forward to 2020. And earlier you had testified that you were having regular interactions with National Intelligence, Homeland Security and the FBI. Yoel Roth: Yes, I did. Rep. Kelly Armstrong (R-ND): And primarily to deal with foreign interference? Yoel Roth: Primarily, but I would say -- Rep. Kelly Armstrong (R-ND): But you had said earlier your contact with Agent Chang was primarily with foreign interference? Yoel Roth: Yes, that's right. Rep. Kelly Armstrong (R-ND): And these were emails....were there meetings? Yoel Roth: Yes, Twitter met quarterly with the FBI Foreign Interference Task Force and we had those meetings running for a number of years to share information about malign foreign interference. Rep. Kelly Armstrong (R-ND): Agents from Homeland Security or Intelligence, or just primarily the FBI? Yoel Roth: Our primary contacts were with the FBI and in those quarterly meetings, they were, I believe, exclusively with FBI personnel. 4:18:05 Rep. Kelly Armstrong (R-ND): Earlier today you testified that you were following national security experts on Twitter as a reason to take down the New York Post story on Hunter Biden's laptop. Yoel Roth: Yes, sir, I did. Rep. Kelly Armstrong (R-ND): So after 2016, you set up all these teams to deal with Russian interference, foreign interference, you're having regular meetings with the FBI, you have connections with all of these different government agencies, and you didn't reach out to them once? Yoel Roth: Is that question in reference to the day of the New York Post article? Rep. Kelly Armstrong (R-ND): Yeah. Yoel Roth: That's right. We generally did not reach out to the FBI to consult on content moderation decisions, especially where they related to domestic activity. It's not that we wouldn't have liked that information, we certainly would have. It's that I don't believe it would have been appropriate for us to consult with the FBI. Rep. Kelly Armstrong (R-ND): In December of 2020, you did a declaration to the Federal Election Commission that the intelligence community expected a leak and a hack operation involving Hunter Biden. Recently, Mark Zuckerberg confirmed that the FBI warned Meta that there was a high effort of Russian propaganda including language specific enough to fit the Hunter Biden laptop security story. You're talking to these people for weeks and months, years prior to this leaking. They have specifically told you in October, that there's going to be a leak potentially involving Hunter Biden's laptop. They legitimately and literally prophesized what happened. And you didn't contact any of them? Yoel Roth: No, sir, I did not. Rep. Kelly Armstrong (R-ND): Did they reach out to you? Yoel Roth: On and around that day, to the best of my recollection, no, they did not. Rep. Kelly Armstrong (R-ND): After the story was taken down and you guys did it, and you personally disagreed with it Ms. Gadde, did you contact them and say is "Hey, is this what you were talking about?" Yoel Roth: If that question was directed to me. No, I did not. Rep. Kelly Armstrong (R-ND): Ms. Gadde, did you talk to anybody from the FBI? Vijaya Gadde: Not to the best of my recollection. Rep. Kelly Armstrong (R-ND): So I guess my question is, what is the point of this program? You have constant communication, they're set up for foreign interference. They've legitimately warned you about this very specific thing. And then all of a sudden, everybody just walks away? 5:18:55 Rep. Melanie Stansbury (D-NM): We are devoting an entire day to this conspiracy theory involving Twitter. Now, the mission of this committee is to root out waste, fraud and abuse and to conduct oversight on behalf of the American people. And if you need any evidence of waste, fraud and abuse, how about the use of this committee's precious time, space and resources to commit to this hearing? 5:58:25 Rep. Eric Burlison (R-MO): Back to Mr. Roth, is it true that Twitter whitelisted accounts for the Department of Defense to spread propaganda about its efforts in the Middle East? Did they give you a list of accounts that were fake accounts and asked you to whitelist those accounts? Yoel Roth: That request was made of Twitter. To be clear, when I found out about that activity, I was appalled by it. I undid the action and my team exposed activity originating from the Department of Defense's campaign publicly. We've shared that data with the world and research about it has been published. 6:07:20 Rep. Jim Jordan (R-OH): Mr. Roth, I want to go back to your statement in your declaration to the FEC "I learned that a hack and leak operation would involve Hunter Biden," who did you learn that from? Yoel Roth: My recollection is it was mentioned by another technology company in one of our joint meetings, but I don't recall specifically whom. Rep. Jim Jordan (R-OH): You don't know the person's name? Yoel Roth: I don't even recall what company they worked at. No, this was a long time ago. Rep. Jim Jordan (R-OH): And you're confident that it was from a tech company, not from someone from the government? Yoel Roth: To the best of my recollection, yes. Rep. Jim Jordan (R-OH): Did anyone from the government, in these periodic meetings you had, did they ever tell you that a hack and leak operation involving Hunter Biden was coming? Yoel Roth: No. Rep. Jim Jordan (R-OH): Did Hunter Biden's name come up at all these meetings? Yoel Roth: Yes, his name was raised in those meetings, but not by the government to the best of my recollection. 6:09:30 Rep. Jim Jordan (R-OH): Mr. Roth, why were you reluctant, based on what I read in the Twitter files, why were you reluctant to work with the GEC? Yoel Roth: It was my understanding that the GEC, or the Global Engagement Center of the State Department, had previously engaged in at least what some would consider offensive influence operations. Not that they were offensive as in bad, but offensive as in they targeted entities outside of the United States. And on that basis, I felt that it would be inappropriate for Twitter to engage with a part of the State Department that was engaged in active statecraft. We were dedicated to rooting out malign foreign interference no matter who it came from. And if we found that the American government was engaged in malign foreign interference, we'd be addressing that as well. 6:13:50 Rep. James Comer (R-KY): Twitter is a private company, but they enjoy special liability protections, Section 230. They also, according to the Twitter files, receive millions of dollars from the FBI, which is tax dollars, I would assume. And that makes it a concern of the Oversight Committee. October 28, 2020 Senate Commerce, Science and Transportation Committee Witnesses: Jack Dorsey, [Former] CEO, Twitter Sundar Pichai, CEO, Alphabet and Google Mark Zuckerberg, CEO, Facebook [Meta] Clips 2:20:40 Sen. Ed Markey (D-MA): The issue is not that the companies before us today are taking too many posts down. The issue is that they?re leaving too many dangerous posts up. In fact, they?re amplifying harmful content so that it spreads like wildfire and torches our democracy. 3:15:40 Mark Zuckerberg: Senator, as I testified before, we relied heavily on the FBI, his intelligence and alert status both through their public testimony and private briefings. Sen. Ron Johnson (R-WI): Did the FBI contact you, sir, than your co star? It was false. Mark Zuckerberg: Senator not about that story specifically. Sen. Ron Johnson (R-WI): Why did you throttle it back? Mark Zuckerberg: They alerted us to be on heightened alert around a risk of hack and leak operations around a release and probe of information. June 18, 2020 Permanent Select Committee on Intelligence Witnesses: Nathaniel Gleicher, Head of Security Policy at Facebook Nick Pickles, Director of Global Public Policy Strategy and Development at Twitter Richard Salgado, Director for Law Enforcement and Information Security at Google 1:40:10 Nathaniel Gleicher: Congressman, the collaboration within industry and with government is much, much better than it was in 2016. I think we have found the FBI, for example, to be forward leaning and ready to share information with us when they see it. We share information with them whenever we see indications of foreign interference targeting our election. The best case study for this was the 2018 midterms, where you saw industry, government and civil society all come together, sharing information to tackle these threats. We had a case on literally the eve of the vote, where the FBI gave us a tip about a network of accounts where they identified subtle links to Russian actors. Were able to investigate those and take action on them within a matter of hours. Music Presented in This Episode by
2023-03-27
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CD269: NDAA 2023/Plan Ecuador

The annual war authorization (NDAA) is an excellent opportunity to examine our military?s roles and goals in the world. In this episode, learn about how much of our tax money Congress provided the Defense Department, including how much of that money is classified, how much more money was dedicated to war than was requested, and what they are authorized to use the money for. This episode also examines our Foreign Military Financing programs with a deep dive into a new partner country: Ecuador. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes World Trade System James McWhinney. Oct 10, 2021. Investopedia. Sally Denton. Simon and Schuster: 2017. Littoral Combat Ships Eric Lipton. Feb 4, 2023. The New York Times. Open Secrets. Foreign Military Sales Program March 10, 2022. Senate Foreign Relations Committee. Ecuador Encyclopedia Britannica. Catrin Einhorn and Manuela Andreoni. Updated Jan 20, 2023. The New York Times. June S. Beittel and Rachel L. Martin. Sep 9, 2022. Congressional Research Service. June S. Beittel. Updated Feb 13, 2018. Congressional Research Service. June S. Beittel. Updated April 20, 2017. Congressional Research Services. Debt Default Sarah Anderson and Neil Watkins. Dec 15, 2008. Institute for Policy Studies. Simon Romero. Dec 12, 2008. The New York Times. Violence and Drugs Nov 4, 2022. International Crisis Group. Jun 8, 2022. EcuadorTimes.net. Vanessa Buschschluter. Nov 4, 2021. BBC. Oct 19, 2021. Deutsche Welle. Mining Updated Mar 28, 2022. CGTN America. Bitty A. Roy. Jun 19, 2018. Tropical Conservation Science. Foreign Infrastructure Investments Nov 28, 2022. BNamericas. May 27, 2022. U.S. Trade and Development Agency. Richard Jiménez and Allen Panchana. Dec 16, 2021. Diálogo Chino. Frank Dougherty. Mar 1, 2021. Power. Fishing Joshua Goodman. Nov 2, 2022. Chattanooga Times Free Press. October 2022. U.S. Interagency Working Group on IUU Fishing. Oct 7, 2022. U.S. Agency for International Development. U.S. Coast Guard. Oct 5, 2022. Diálogo Americas. Adam Chandler. Dec 16, 2015. The Atlantic. Cutter Ships Ronald O'Rourke. Updated August 30, 2022. Congressional Research Service. Julian Assange Luke Harding et al. May 15, 2018. The Guardian. Simon Romero. Apr 5, 2011. The New York Times. Chevron Case Zack Budryk. Dec 27, 2022. The Hill. Venezuela Apr 14, 2021. teleSUR. China Trade Deal Jan 3, 2023. Reuters. Sep 23, 2022. The Dialogue. Alexandra Valencia. Feb 5, 2022. Reuters. Business Reforms Ramiro Crespo. Mar 3, 2022. Latin American Advisor. U.S. Ecuador Partnership Isabel Chriboga. Dec 22, 2022. The Atlantic Council. Jim Wiesemeyer. Dec 21, 2022. AgWeb. Dec 19, 2022. Al Jazeera. Isabel Chiriboga. Dec 19, 2022. The Atlantic Council. Nov 1, 2022. Office of the United States Trade Representative. Oct 19, 2022. U.S. Embassy & Consulate in Ecuador. Referendum Sebastián Hurtado. Dec 19, 2022. Americas Quarterly. State Enterprise Resignation Jan 18, 2023. Buenos Aires Times. Lithium Triangle John Price. Aug 22, 2022. Americas Market Intelligence. Colombia Catherine Osborn. Jan 20, 2023. Foreign Policy. María Paula Rubiano A. Nov 16, 2022. BBC. June S. Beittel. Updated December 16, 2021. Congressional Research Service. Tax Reform Ricardo Ávila. Nov 23, 2022. Americas Quarterly. Cesar Vence and Megan Bridges. Oct 26, 2022. U.S. Chamber of Commerce. U.S. Chamber of Commerce. Relationship with U.S. Cancer Treatment Centers of America. Jul 8, 2021. City of Hope. Kejal Vyas. May 4, 2020. The Wall Street Journal. Luoping Zhang et al. Mutation Research/Reviews in Mutation Research Vol. 781, July?September 2019, pp. 186-206. Jun 26, 2018. Syria Mehdi Hasan. Oct 26, 2019. The Intercept. Jan 20, 2021. U.S. Department of State, Bureau of Near Eastern Affairs. Mark Mazzetti et al. Aug 2, 2017. The New York Times. C. J. Chivers and Eric Schmitt. Mar 24, 2013. The New York Times. Government Funding Dec 23, 2022. House Appropriations Committee Democrats. Senate Appropriations Committee. Senate Appropriations Committee. Laws Bills Audio Sources January 19, 2023 The Atlantic Council Clips 17:51 Gen. Laura Richardson: The Belt and Road Initiative (BRI) that has been ongoing for the last over a decade in this region, 21 of 31 countries have signed on to this Belt and Road Initiative. I could take Argentina last January, the most recent signatory on to the Belt and Road Initiative, and $23 billion in infrastructure projects that signatory and signing on to that. But again, 21 of 31 countries. There are 25 countries that actually have infrastructure projects by the PRC. Four that aren't signatories of the BRI, but they do actually have projects within their countries. But not just that. Deepwater ports in 17 countries. I mean, this is critical infrastructure that's being invested in. I have the most space enabling infrastructure in the Western Hemisphere in Latin America and the Caribbean. And I just caused question, you know, why? Why is all of this critical infrastructure being invested in so heavily? In terms of telecommunications, 5G, I've got five countries with the 5G backbone in this region. I've got 24 countries with the PRC Huawei 3G-4G. Five countries have the Huawei backbone infrastructure. If I had to guess, they'll probably be offered a discount to upgrade and stay within the same PRC network. And so very, very concerning as we work with our countries. 20:00 Gen. Laura Richardson: What I'm starting to see as well is that this economy...the economy impacts to these partner nations is affecting their ability to buy equipment. And you know, as I work with our partner nations, and they invest in U.S. equipment, which is the best equipment, I must say I am a little biased, but it is the best equipment, they also buy into the supply chain of spare parts, and all those kinds of things that help to sustain this piece of equipment over many, many years. So in terms of the investment that they're getting, and that equipment to be able to stay operational, and the readiness of it, is very, very important. But now these partner nations, due to the impacts of their economy, are starting to look at the financing that goes along with it. Not necessarily the quality of the equipment, but who has the best finance deal because they can't afford it so much up front. 24:15 Gen. Laura Richardson: This region, why this region matters, with all of its rich resources and rare earth elements. You've got the lithium triangle which is needed for technology today. 60% of the world's lithium is in the lithium triangle: Argentina Bolivia, Chile. You just have the largest oil reserves -- light, sweet, crude -- discovered off of Guyana over a year ago. You have Venezuela's resources as well with oil, copper, gold. China gets 36% of its food source from this region. We have the Amazon, lungs of the world. We have 31% of the world's freshwater in this region too. I mean, it's just off the chart. 28:10 Gen. Laura Richardson: You know, you gotta question, why are they investing so heavily everywhere else across the planet? I worry about these dual-use state-owned enterprises that pop up from the PRC, and I worry about the dual use capability being able to flip them around and use them for military use. 33:30 Interviewer: Russia can't have the ability to provide many of these countries with resupply or new weapons. I mean, they're struggling to supply themselves, in many cases, for Ukraine. So is that presenting an opportunity for maybe the US to slide in? Gen. Laura Richardson: It is, absolutely and we're taking advantage of that, I'd like to say. So, we are working with those countries that have the Russian equipment to either donate or switch it out for United States equipment. or you Interviewer: Are countries taking the....? Gen. Laura Richardson: They are, yeah. 45:25 Gen. Laura Richardson: National Guard State Partnership Program is huge. We have the largest National Guard State Partnership Program. It has come up a couple of times with Ukraine. Ukraine has the State Partnership Program with California. How do we initially start our great coordination with Ukraine? It was leveraged to the National Guard State Partnership Program that California had. But I have the largest out of any of the CoCOMMs. I have 24 state partnership programs utilize those to the nth degree in terms of another lever. 48:25 Gen. Laura Richardson: Just yesterday I had a zoom call with the U.S. Ambassadors from Argentina and Chile and then also the strategy officer from Levant and then also the VP for Global Operations from Albermarle for lithium, to talk about the lithium triangle in Argentina, Bolivia and Chile and the companies, how they're doing and what they see in terms of challenges and things like that in the lithium business and then the aggressiveness or the influence and coercion from the PRC. June 15, 2022 Clips Rep. Jackie Speier (D-CA): The GAO found that the LCS had experienced engine failure in 10 of the 11 deployments reviewed. Rep. Jackie Speier (D-CA): One major reason for the excessive costs of LCS: contractors. Unlike other ships where sailors do the maintenance, LCS relies almost exclusively on contractors who own and control the technical data needed to maintain and repair. Rep. Jackie Speier (D-CA): Our top priority and national defense strategy is China and Russia. We can't waste scarce funds on costly LCS when there are more capable platforms like destroyers, attack submarines, and the new constellation class frigate. May 25, 2022 Senate Appropriations Committee, Subcommittee on Defense Witnesses: Carlos Del Toro, Secretary, United States Navy Admiral Michael M. Gilday, Chief of Naval Operations General David H. Berger, Commandant of the Marine Corps Clips Sen. Jerry Moran (R-KS): I think the christening was just a few years ago...maybe three or so. So the fact that we christened the ship one year and a few years later we're decommissioning troubles me. Sen. Jerry Moran (R-KS): Are there not other uses, if there's something missing from this class of ships, that we would avoid decommissioning? Adm. Michael Gilday: We need a capable, lethal, ready Navy more than we need a larger Navy that's less capable, less lethal, and less ready. And so, unfortunately the Littoral combat ships that we have, while the mechanical issues were a factor, a bigger factor was was the lack of sufficient warfighting capability against a peer competitor in China. Adm. Michael Gilday: And so we refuse to put an additional dollar against that system that wouldn't match the Chinese undersea threat. Adm. Michael Gilday: In terms of what are the options going forward with these ships, I would offer to the subcommittee that we should consider offering these ships to other countries that would be able to use them effectively. There are countries in South America, as an example, as you pointed out, that would be able to use these ships that have small crews. April 25, 2022 March 31, 2022 Senate Foreign Relations Committee Witnesses: Kerri Hannan, Deputy Assistant Secretary for Public Diplomacy, Policy, Planning, and Coordination, Bureau of Western Hemisphere Affairs, U.S. Department of State Peter Natiello, Senior Deputy Assistant Administrator, Latin America and Caribbean Bureau, U.S. Agency for International Development Andrew M. Herscowitz, Chief Development Officer, U.S. International Development Finance Corporation Margaret Myers, Director of the Asia & Latin America Program, Inter-American Dialogue Evan Ellis, Senior Associate, Center for Strategic and International Studies Clips 24:20 Sen. Tim Kaine (D-VA): Ecuador for example, nearly 20 years ago, former President Rafael Correa promised modernization for Ecuador, embracing Chinese loans and infrastructure projects in exchange for its oil. Fast forward to today. Ecuador now lives with the Chinese financed and built dam that's not fully operational despite being opened in 2016. The Coca Codo Sinclair Dam required over 7000 repairs, it sits right next to an active volcano, and erosion continues to damage the dam. The dam also caused an oil spill in 2020 that has impacted indigenous communities living downstream. And all that's on top of the billions of dollars that Ecuador still owes China. 56:40 Peter Natiello: One example that I could provide is work that we've done in Ecuador, with Ecuadorian journalists, to investigate, to analyze and to report on the issue of illegal and unregulated fishing off Ecuador's coast. And we do that because we want to ensure that Ecuadorian citizens have fact-based information upon which they can make decisions about China and countries like China, and whether they want their country working with them. 1:23:45 Sen. Ed Markey (D-MA): There are 86 million tons of identified lithium resources on the planet. On the planet. 49 million of the 86 million are in the Golden Triangle. That's Argentina, Bolivia, Chile. So what's our plan? 1:54:10 Evan Ellis: In security engagement, the PRC is a significant provider of military goods to the region including fighters, transport aircraft, and radars for Venezuela; helicopters and armored vehicles for Bolivia; and military trucks for Ecuador. 2:00:00 Margaret Myers: Ecuador is perhaps the best example here of a country that has begun to come to terms with the challenges associated with doing business with or interacting from a financial or investment perspective with China. And one need only travel the road from the airport to Quito where every day there are a lot of accidents because of challenges with the actual engineering of that road to know why many Ecuadorians feel this way. March 10, 2022 Senate Committee on Foreign Relations Witnesses: Jessica Lewis, Assistant Secretary of State for Political-Military Affairs, U.S. Department of State Mara Elizabeth Karlin, Assistant Secretary of Defense for Strategy, Plans and Capabilities, U.S. Department of Defense Clips 1:23:17 Sen. Chris Murphy (D-CT): According to one study, the DoD manages 48 of the 50 new security assistance programs that were created after the 9/11 attacks and out of the 170 existing security assistance programs today, DOD manages 87, a whopping 81% of those programs. That is a fundamental transition from the way in which we used to manage security assistance. And my worry is that it takes out of the equation the people who have the clearest and most important visibility on the ground as to the impact of that security assistance and those transfers. Sen. Chris Murphy: We just spent $87 billion in military assistance over 20 years in Afghanistan. And the army that we supported went up in smoke overnight. That is an extraordinary waste of U.S. taxpayer dollars, and it mirrors a smaller but similar investment we made from 2003 to 2014 in the Iraqi military, who disintegrated when they faced the prospect of a fight against ISIS. Clearly, there is something very wrong with the way in which we are flowing military assistance to partner countries, especially in complicated war zones. You've got a minute and 10 seconds, so maybe you can just preview some lessons that we have learned, or the process by which we are going to learn lessons from all of the money that we have wasted in Iraq and Afghanistan. Jessica Lewis: Senator, I'll be brief so that Dr. Karlin can jump in as well. I think we do need to learn lessons. We need to make sure, as I was just saying to Senator Cardin, that when we provide security assistance, we also look not just at train and equip, but we look at other things like how the Ministries of Defense operate? Is their security sector governant? Are we creating an infrastructure that's going to actually work? Mara Elizabeth Karlin: Thank you for raising this issue, Senator. And I can assure you that the Department of Defense is in the process of commissioning a study on this exact issue. I will just say in line with Assistant Secretary Lewis, it is really important that when we look at these efforts, we spend time assessing political will and we do not take an Excel spreadsheet approach to building partner militaries that misses the higher order issues that are deeply relevant to security sector governance, that will fundamentally show us the extent to which we can ultimately be successful or not with a partner. Thank you. Sen. Chris Murphy (D-CT): You know, in Iraq, last time I was there, we were spending four times as much money on security assistance as we were on non-security assistance. And what Afghanistan taught us amongst many things, is that if you have a fundamentally corrupt government, then all the money you're flowing into the military is likely wasted in the end because that government can't stand and thus the military can't stand. So it also speaks to rebalancing the way in which we put money into conflict zones, to not think that military assistance alone does the job. You got to be building sustainable governments that serve the public interests in order to make your security assistance matter and be effective. Thank you, Mr. Chairman. March 8, 2022 House Armed Services Committee Witnesses: Melissa G. Dalton, Assistant Secretary of Defense for Homeland Defense and Hemispheric Affairs Office of the Secretary of Defense General Laura Richardson, USA, Commander, U.S. Southern Command General Glen D. VanHerck, USAF, Commander, U.S. Northern Command and North American Aerospace Defense Command Clips 17:30 General Laura Richardson: Colombia, for example, our strongest partner in the region, exports security by training other Latin American militaries to counter transnational threats. 1:20:00 General Laura Richardson: If I look at what PRC (People's Republic of China) is investing in the [SOUTHCOM] AOR (Area of Responsibility), over a five year period of 2017 to 2021: $72 billion. It's off the charts. And I can read a couple of the projects. The most concerning projects that I have are the $6 billion in projects specifically near the Panama Canal. And I look at the strategic lines of communication: Panama Canal and the Strait of Magellan. But just to highlight a couple of the projects. The nuclear power plant in Argentina: $7.9 billion. The highway in Jamaica: $5.6 billion. The energy refinery in Cuba, $5 billion. The highway in Peru: $4 billion. Energy dam in Argentina: $4 billion, the Metro in Colombia: $3.9 billion. The freight railway in Argentina: $3 billion. These are not small projects that they're putting in this region. This region is rich in resources, and the Chinese don't go there to invest, they go there to extract. All of these projects are done with Chinese labor with host nation countries'. November 30, 2021 Senate Foreign Affairs Committee Witnesses: Brian A. Nichols, Assistant Secretary of State for Western Hemisphere Affairs, U.S. Department of State Todd D. Robinson, Assistant Secretary of State for International Narcotics and Law Enforcement Affairs, U.S. Department of State Clips 1:47:15 Sen. Ted Cruz (R-TX): I'd like to start with Mexico. I am increasingly concerned that the Mexican government is engaged in a systematic campaign to undermine American companies, and especially American energy companies that have invested in our shared prosperity and in the future of the Mexican people and economy. Over the past five months, Mexican regulators have shut down three privately owned fuel storage terminals. Among those they shut down a fuel terminal and Tuxpan, which is run by an American company based in Texas, and which transports fuel on ships owned by American companies. This is a pattern of sustained discrimination against American companies. And I worry that the Mexican government's ultimate aim is to roll back the country's historic 2013 energy sector liberalisation reforms in favor of Mexico's mismanaged and failing state-owned energy companies. The only way the Mexican government is going to slow and reverse their campaign is if the United States Government conveys clearly and candidly that their efforts pose a serious threat to our relationship and to our shared economic interests. 2:01:50 Sen. Cory Booker (D-NJ): Mr. Nichols, can you can you just be a little more specific about the tactics of the GEC? What are some of the specific activities they're doing? And what more would you like to see them do? Brian A. Nichols: The Global Engagement Center both measures public opinion and social media trends throughout the world. They actively work to counter false messages from our strategic competitors. And they prepare media products or talking points that our embassies and consulates around the hemisphere can use to combat disinformation. I think they do a great job. Obviously, it's a huge task. So the the resources that they have to bring to bear to this limit, somewhat, the ability to accomplish those goals, but I think they're doing vital, vital work. 2:13:30 Todd D. Robinson: We are, INL (International Narcotics and Law Enforcement) are working very closely with the Haitian National Police, the new Director General, we are going to send in advisors. When I was there two weeks ago, I arrived with -- they'd asked for greater ability to get police around the city -- I showed up with 19 new vehicles, 200 new protective vests for the police. The 19 was the first installment of a total of 60 that we're going to deliver to the Haitian National Police. We're gonna get advisors down there to work with the new SWAT team to start taking back the areas that have been taken from ordinary Haitians. But it's going to be a process and it's going to take some time. Sen. Bob Menendez: Well, first of all, is the Haitian National Police actually an institution capable of delivering the type of security that Hatians deserve? Todd D. Robinson: We believe it is. It's an institution that we have worked with in the past. There was a small brief moment where Haitians actually acknowledged that the Haitian National Police had gotten better and was more professional. Our goal, our long term goal is to try to bring it back to that Sen. Bob Menendez: How much time before we get security on the ground? Todd D. Robinson: I can't say exactly but we are working as fast as we can. Sen. Bob Menendez: Months, years? Todd D. Robinson: Well, I would hope we could do it in less than months. But we're working as fast as we can. January 25, 2018 Senate Committee on Armed Services Witnesses: Dr. Henry A. Kissinger, Chairman of Kissinger Associates and Former Secretary of State Dr. George P. Shultz, Thomas W. and Susan B. Ford Distinguished Fellow, Hoover Institution, Stanford University and Former Secretary of State Richard L. Armitage, President, Armitage International and Former Deputy Secretary of State Clips Dr. George Shultz: Small platforms will carry a very destructive power. Then you can put these small platforms on drones. And drones can be manufactured easily, and you can have a great many of them inexpensively. So then you can have a swarm armed with lethal equipment. Any fixed target is a real target. So an airfield where our Air Force stores planes is a very vulnerable target. A ship at anchor is a vulnerable target. So you?ve got to think about that in terms of how you deploy. And in terms of the drones, while such a system cannot be jammed, it would only serve to get a drone?talking about getting a drone to the area of where its target is, but that sure could hit a specific target. At that point, the optical systems guided by artificial intelligence could use on-board, multi-spectral imaging to find a target and guide the weapons. It is exactly that autonomy that makes the technologic convergence a threat today. Because such drones will require no external input other than the signature of the designed target, they will not be vulnerable to jamming. Not requiring human intervention, the autonomous platforms will also be able to operate in very large numbers. Dr. George Shultz: I think there?s a great lesson here for what we do in NATO to contain Russia because you can deploy these things in boxes so you don?t even know what they are and on trucks and train people to unload quickly and fire. So it?s a huge deterrent capability that is available, and it?s inexpensive enough so that we can expect our allies to pitch in and get them for themselves. Dr. George Shultz: The creative use of swarms of autonomous drones to augment current forces would strongly and relatively cheaply reinforce NATO, as I said, that deterrence. If NATO assists frontline states in fielding large numbers of inexpensive autonomous drones that are pre-packaged in standard 20-foot containers, the weapons can be stored in sites across the countries under the control of reserve forces. If the weapons are pre-packaged and stored, the national forces can quickly deploy the weapons to delay a Russian advance. So what?s happening is you have small, cheap, and highly lethal replacing large, expensive platforms. And this change is coming about with great rapidity, and it is massively important to take it into account in anything that you are thinking about doing. June 15, 2017 House Foreign Affairs Subcommittee on Terrorism, Nonproliferation, and Trade Witnesses: Tina Kaidanow, Acting Assistant Secretary, Bureau of Political-Military Affairs, U.S. Department of State Vice Admiral Joseph Rixey, Director, U.S. Defense Security Cooperation Agency Clips 14:40 Tina Kaidanow: Arms Transfers constitute an element of foreign policy. We therefore take into account foreign policy considerations as we contemplate each arms transfer or sale, including specifically, the appropriateness of the transfer in responding to U.S and recipient security needs; the degree to which the transfer supports U.S. strategic foreign policy and defense interests through increased access and influence; allied burden sharing and interoperability; consistency with U.S. interests regarding regional stability; the degree of protection afforded by the recipient company to our sensitive technology; the risk that significant change in the political or security situation of the recipient country could lead to inappropriate end use or transfer; and the likelihood that the recipient would use the arms to commit human rights abuses or serious violations of international humanitarian law, or retransfer the arms to those who would commit such abuses. As a second key point, arms transfers support the U.S. Defense industrial base and they reduce the cost of procurement for our own U.S. military. Purchases made through the Foreign Military Sales, known as the FMS, system often can be combined with our Defense Department orders to reduce unit costs. Beyond this, the US defense industry directly employs over 1.7 million people across our nation. 20:20 Vice Admiral Joseph Rixey: FMS is the government-to-government process through which the U.S. government purchases defense articles, training, and services on behalf of foreign governments, authorized in the Arms Export Control Act. FMS is a long standing security cooperation program that supports partner and regional security, enhances military-to-military cooperation, enables interoperability and develops and maintains international relationships. Through the FMS process, the US government determines whether or not the sale is of mutual benefit to us and the partner, whether the technology can and will be protected, and whether the transfer is consistent with U.S. conventional arms transfer policy. The FMS system is actually a set of systems in which the Department of State, Department of Defense, and Congress play critical roles. The Department of Defense in particular executes a number of different processes including the management of the FMS case lifecycle which is overseen by DSCA (Defense Security Cooperation Agency). Technology transfer reviews, overseen by the Defense Technology Security Administration, and the management of the Defense Acquisition and Logistics Systems, overseen by the Office of the Undersecretary of Defense for Acquisition, Technology and Logistics, and the military departments. This process, or a version of it, also serves us well, in the DoD Title X Building Partnership Capacity arena, where the process of building a case, validating a requirement and exercising our U.S. acquisition system to deliver capability is modeled on the FMS system. I want to say clearly that overall the system is performing very well. The United States continues to remain the provider of choice for our international partners, with 1,700 new cases implemented in Fiscal Year 2016 alone. These new cases, combined with adjustments to existing programs, equated to more than $33 billion in sales last year. This included over $25 billion in cases funded by our partner nations' own funds and approximately $8 billion in cases funded by DOD Title X program or Department of State's Appropriations. Most FMS cases move through the process relatively quickly. But some may move more slowly as we engage in deliberate review to ensure that the necessary arms transfer criteria are met. 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2023-02-26
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CD268: Disappearing Oversight: The NFL Sexual Misconduct Investigation

In December, the House Oversight and Reform Committee released a final report from their investigation into allegations of sexual assault committed by Washington Commanders team owner Dan Snyder. In this episode, you will hear the testimony and discover what the NFL did - or didn?t do - to punish the people who sexually harassed their employees. You will also learn that in the process of researching this episode, the Congressional Dish team discovered that the hearings related to this investigation, among others, have recently vanished from the committee archives, raising questions about how that happened and what needs to be done to prevent our sources from being disappeared. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Washington Commanders-Dan Snyder Background Adam Kilgore and Roman Stubbs. Jul 9, 2020. The Washington Post. Scott Allen. May 24, 2019. The Washington Post. Full House Committee on Oversight and Reform Report Dec 8, 2022. The New York Times. NFL Investigation Sally Jenkins. Jul 1, 2021. The Washington Post. Jul 1, 2021. NFL. Dan Snyder Misconduct Will Hobson and Liz Clarke. Dec 14, 2021. The Washington Post. Will Hobson et al. Jul 2, 2021. The Washington Post. Nicki Jhabvala and Mark Maske. Jun 29, 2021. The Washington Post. Will Hobson et al. Dec 22, 2020. The Washington Post. Will Hobson et al. Aug 26, 2020. The Washington Post. Will Hobson and Liz Clarke. Jul 16, 2020. The Washington Post. Dan Snyder Money Edward Sutelan. Nov 14, 2022. The Sporting News. Lauren Schwahn. Dec 2, 2022. Nerd Wallet. Dave Portnoy Superbowl Arrest Danny Small. Feb 4, 2019. Elite Sports NY. NFL Ownership and Potential Commanders Sale Scott Polacek. Feb 8, 2023. Bleacher Report. Joe Rivera. Nov 2, 2022. The Sporting News. Wikipedia. Past Congressional Oversight of Sporting Organizations Associated Press. Jul 28, 2007. MSNBC via the Wayback Machine. House Government Reform and Oversight Committee (109th Congress). March 17, 2005. C-SPAN. NFL Nonprofit Status and Lobbying IRS. Open Secrets. Matt Johnson. Jul 15, 2022. Sportsnaut. House Control Walter Shapiro. Feb 9, 2023. The New Republic. Laws Bills Hearings June 22, 2022 House Oversight and Reform Committee Witness: Rodger Goodell:, Commissioner, National Football League Clips 3:05 Rep. Carolyn Maloney (D-NY): We also invited Daniel Snyder to testify today, but rather than show up and take responsibility for his actions, he chose to skip town. Apparently Mr. Snyder is in France, where he has docked his luxury yacht near a resort town. 3:45 Rep. Carolyn Maloney (D-NY): According to top executives, he fired women, but not men, who engaged in relationships with other employees while defending male executives accused of sexual harassment. And he kept employees from speaking out through a culture of fear. As one longtime employee described Mr. Snyder's tactics: "If you don't obey, intimidate. If you still don't obey, terminate." Finally, the employee added, "If that didn't work, buy them off." The Committee has also uncovered evidence that Mr. Snyder conducted a shadow investigation to target his accusers, pin the blame on others, and influence the NFL's own internal review. He filed phony lawsuits to collect private phone records, emails, and text messages. 7:10 Rep. Carolyn Maloney (D-NY): Our first bill, the Accountability for Workplace Misconduct Act, will require employers to conduct thorough investigations and share the outcome with victims, and it will prohibit employers from using Non-disclosure Agreements to conceal workplace misconduct -- one of Dan Snyder's favorite tactics. Our second bill is the Professional Images Protection Act. Our investigation confirmed that the Commanders secretly created lewd videos of cheerleaders for the private enjoyment of Dan Snyder. That is despicable and our bill will create notice and consent requirements for employers who use their employees' professional images. 23:10 Rodger Goodell: Hi I'm Roger Goodell commissioner of the National Football League and I'm here today to discuss the NFL's efforts to promote safe and respectful workplaces, including at the Washington Commanders. 23:25 Rodger Goodell: The Commanders are one of 32 NFL clubs, each of which is managed by its ownership and executives and have their own workplaces and policies. Two years ago, the Commanders asked me to recommend independent counsel to address workplace issues and recommend changes to improve the workplace culture. We identified several candidates and the club selected Beth Wilkinson, a distinguished former Federal Prosecutor. Approximately six weeks later, the club asked my office to assume oversight of the Wilkinson firm's work. The Wilkinson firm conducted a comprehensive review of the workplace at the club, interviewing more than 150 witnesses. As a result, we gained a clearer understanding of what the workplace had been at the Commanders, how it had begun to change, and what further steps were needed to support our ultimate goal of transforming that workplace to one that is safe and productive for all of its employees. 25:05 Rodger Goodell: It is clear to me that the workplace in Washington was unprofessional and unacceptable in numerous respects: bullying, widespread disrespect toward colleagues, use of demeaning language, public embarrassment and harassment. Moreover, for a prolonged period of time, the Commanders had a woefully deficient HR function, particularly with respect to reporting practices and record keeping. As a result, we imposed unprecedented discipline on the club, monetary penalties of well over $10 million, and requirements that the club implement a series of recommendations and allow an outside firm to conduct regular reviews of their workplace. In addition, for the past year, Daniel Snyder has not attended league or committee meetings, and to the best of my knowledge has not been involved in day to day operations at the Commanders. The cheerleader program has been entirely revamped and it's now a co-ed dance team under new leadership. And the most recent independent workplace report, which we have shared with the Committee, confirms that an entirely new, highly skilled and diverse management team is in place, and that there has been, "substantial transformation of the team's culture, leadership and human resources practices." 26:35 Rodger Goodell: We did not receive a written report of Miss Wilkinson's findings for compelling reasons that continue to this day. A critical element of any workplace review is broad participation by both current and former employees. Encouraging employees to come forward and share their experiences, which were frequently painful and emotional, was essential to identifying both the organization's failures and how to fix them. To encourage this participation, Ms. Wilkinson promised confidentiality to any current or former employee. For this reason, shortly after we assumed oversight of Miss Wilkinson's work, we determined that a comprehensive oral briefing was best to allow us to receive the information necessary both to evaluate the workplace as it was, and to ensure that the team put in place the policies and processes to reform that workplace, all while preserving the confidentiality of those who participated in the investigation. 28:35 Rodger Goodell: When the committee has asked questions or requested documents which could violate witness privacy, we have asserted privilege. We will continue to do so to safeguard our commitment. 28:45 Rodger Goodell:: Earlier this year, the committee heard testimony from several former employees that included new and direct allegations against Mr. Snyder. We properly engaged former U.S. Attorney Mary Jo White to investigate those allegations. Because those new allegations were brought to the committee in a public setting, we will share the results of that investigation when it's completed and will take additional disciplinary action if warranted. 29:50 Rodger Goodell: Finally, I want to address the Committee's review of Non-disclosure Agreements. Our policies do not allow a club to use an NDA to bar someone from participating in a league investigation, and nobody who wished to speak to the Wilkinson firm was prevented from doing so by an NDA. 36:45 Rep. Carolyn Maloney (D-NY): Mr. Snyder has not been held accountable. His refusal to testify sends a clear message that he is more concerned about protecting himself than coming clean with the American people. If the NFL is unwilling or unable to hold Mr. Snyder accountable, then I am prepared to do so. That is why I am announcing now my intent to issue a subpoena for the testimony of Mr. Snyder for a deposition next week. The committee will not be deterred in its investigation to uncover the truth of workplace misconduct at the Washington Commaders. 38:20 Rodger Goodell: While I have the microphone I'd also like to say, respectfully, that Dan Snyder has been held accountable. As I mentioned in the opening, he faced unprecedented discipline, including financial fines, being removed and away from the team at his request for a period of time up to the year now already, and secondly, and more importantly, transformation of that organization that is going on in the last year, which is really important. 42:25 Rep. Virginia Foxx (R-NC): This committee has no jurisdiction over private entities. Our jurisdiction is on government entities. 1:10:40 Rep. Raja Krishnamoorthi (D-IL): Now, sir, you had mentioned that the reason for the press release as opposed to a detailed finding, as you had in the other cases was because of privacy concerns. Isn't that right? Rodger Goodell: That was one of the issues. Yes. Rep. Raja Krishnamoorthi (D-IL): However, I have this 148 Page Miami Dolphins harassment report that you did where you have redacted the names of various individuals out of privacy concerns. And so it is possible to release a detailed report and at the same time protect people's privacy, yet you chose not to do so in this particular case with the Commanders. Rep. Glenn Grothman (R-WI): Study after study shows there is not systemic racism in our police departments. There is a narrative out there, for example, who to this day mislead the public as to what happened in Ferguson. The Black Lives Matter movement fanned the flames out there even though Barack Obama's own Justice Department found that shooting was justified and you have kind of piled on with the narrative that we have a fundamental problem. Rep. Jackie Speier (D-CA): So non disclosure agreements by each of your various teams are not being used. Is that what you're saying? Rodger Goodell: No, I'm not saying that at all. Rep. Carolyn Maloney (D-NY): The gentlelady's time has expired. The gentleman may answer her question. Rodger Goodell: I'm not saying that. State by state...our teams operate in different states that have different laws. So the federal legislation is something that we're willing to work with the Committee on it. February 3, 2022 House Oversight and Reform Committee Witnesses: Emily Applegate, Former Marketing Coordinator, Washington Commanders Brad Baker, Former Manager and Producer of Video, Washington Commanders Melanie Coburn, Former Director of Marketing, Cheerleaders, Washington Commanders Rachel Engelson, Former Director of Marketing and Client Relations, Washington Commanders Tiffani Johnston, Former Manager of Marketing, Washington Commanders Ana Nunez, Former Coordinator of Business Development, Washington Commanders Clips 9:45 Rep. James Comer (R-KY): Instead of adhering to our committee's mission to root out waste, fraud, and abuse and mismanagement in the federal government, Democrats instead are holding a roundtable about the work culture in one single private organization. 10:00 Rep. James Comer (R-KY): Make no mistake, no one should face harassment at work and bad actors must be held accountable. But it's unclear why examining harassment that took place a decade ago in one private workplace warrants oversight from this committee. This issue is best handled by human resources and the courts, not Congress. 10:25 Rep. James Comer (R-KY): Further, because of the bravery of the women testifying before us today, the culture of the franchise has completely turned around. And I want to thank the ladies for being here today. After the NFL investigation into the football team last year, Commissioner Roger Goodell levied the highest fine on an owner in the history of the sport, and suspended the owner from team's operations indefinitely. In addition, the commissioner made a series of recommendations to the team to improve its culture. This week, an independent audit confirmed those recommendations are working. Madam Chair, I'd like to submit the audit for the record. 11:30 Rep. James Comer (R-KY): Because of the Commissioner's leadership, bad actors have been held accountable and the culture at the football team has improved. So why are Democrats utilizing committee resources today to examine an issue that is on the path to resolution and is outside this committee's jurisdiction? 18:15 Rep. Carolyn Maloney (D-NY): Our first participant is Melanie Coburn who was a cheerleader for the Washington Football Team from 1997 to 2001 and was the director of Marketing and Marketing Coordinator from 2001 to 2011. 18:30 Rep. Carolyn Maloney (D-NY): Then we will hear from Tiffany Johnston, who was a cheerleader for the Washington football team from 2007 to 2008, and a Marketing Manager and Marketing and Events Coordinator for Club Level Tickets from 2002 to 2008. 18:50 Rep. Carolyn Maloney (D-NY): Next we will hear from Brad Baker, who was a Producer at the Washington football team from 2007 to 2008 and a Video Production Manager from 2008 to 2009. 19:05 Rep. Carolyn Maloney (D-NY): Next we will hear from Ana Nunez, who was a Coordinator of Business Development and Client Service and an Account Executive at the Washington football team from 2015 to 2019. 19:20 Rep. Carolyn Maloney (D-NY): Next, we will hear from Rachel Engelson, who started as an intern for the Washington football team in 2010 and then became a Customer Service Representative, a Manager of Premium Client Services, the Director of Marketing and Client Relations, and the Director of Client Services from 2011 to 2019. 19:40 Rep. Carolyn Maloney (D-NY): Finally, we will hear from Emily Applegate who was a Marketing Coordinator, Premium Client Services Coordinator, and Ticket Sales Representative at the Washington Football Team from 2014 to 2015. 21:00 Melanie Coburn: At cheerleader auditions one year, Dan Snyder ordered the director of the squad to parade the ladies onto the field while he and his friends gawked from a suite through binoculars. The women were directed to turn around slowly, as if they were cattle being examined for sale. One of the women cried on the sidelines because she didn't understand what was happening. 21:30 Melanie Coburn: Over the years, it became clear that Dan Snyder and his male executives were far too interested in the cheerleaders. Eventually, Dan himself had the final say of who made the team and who got months in the calendar. Unbelievably, he requested binders of photographs for auditions and the calendar so that he could choose who to cut based on looks, not talent. One year he cut 10 veterans who otherwise would have made the team based on their skill and experience, evidently because they weren't the prettiest in his opinion. It was known as the Tyson's massacre. 22:10 Melanie Coburn: During calendar production one year, a male Executive took unedited prints off the graphic designer's desk despite my warnings to protect them. One of these compromising full size photos was one of the team's most loyal employees, and my dear friend. She's sitting next to me today. I'm still haunted by this. And at the time, there was no HR department or any reporting mechanism for this abusive behavior. 23:05 Melanie Coburn: I felt compelled to come forward publicly when I read the second shocking [Washington] Post article that revealed two lewd videos of the cheerleaders that were secretly created. I was physically ill when I read that piece. "The Good Bits" videos produced at the behest of Dan Snyder were secretly made from footage taken at our calendar shoots. We trusted the production team to capture footage and keep it safe. Little did we know they were zooming in on private parts and keeping cameras rolling during costume changes. I've cried with the women in these videos as they explain the horror of seeing themselves in what is essentially a soft porn video soundtracked to Dan Snyder's favorite bands. These women remain traumatized. 24:35 Melanie Coburn: Dan Snyder rules by fear. We've seen Dan's vindictive wrath for years, such as when he nearly bankrupted the Washington City Paper for an unflattering article. He sent private investigators to the homes of a dozen former cheerleaders last year and I got calls from these terrified women who didn't understand why PIs were showing up on their doorsteps. He offered hush money to a group of us in exchange for our silence last February, but we declined. This was offensive, and certainly felt like intimidation and witness tampering to us. 26:10 Tiffani Johnston: Hi, my name is Tiffani Johnston. I appreciate you all for taking the time to hear about the constant workplace harassment that occurred at the Washington Football Team for over two decades. I personally experienced it multiple times during my eight year tenure as both a cheerleader and a marketing manager. 26:50 Ana Nunez: Hi, my name is Ana Nunez and I worked in sales for the Washington football team for almost four years. 28:20 Tiffani Johnston: I learned on one specific occasion that when I was asked by my boss to attend a networking event, and oh to dress cute, it was actually an orchestration by him and Dan Snyder to put me in a compromising sexual situation. I learned that placing me strategically by the owner at a work dinner after this networking event was not for me to discuss business, but to allow him, Dan Snyder, to place his hand on my thigh under the table. I learned how to discreetly remove a man's unwanted hand from my thigh at a crowded dinner table at a busy restaurant to avoid a scene. I learned that job survival meant I should continue my conversation with another coworker, rather than call out Dan Snyder right then in the moment. I also learned later that evening how to awkwardly laugh when Dan Snyder aggressively pushed me towards his limo with his hand on my lower back, encouraging me to ride with him to my car. I learned how to continue to say no, even though a situation was getting more awkward, uncomfortable and physical. I learned that the only reason Dan Snyder removed his hand from my back and stop pushing me towards his limo was because his attorney intervened and said "Dan, Dan, this is a bad idea. A very bad idea, Dan." I learned that I should remove myself from Dan's grip while his attorney was distracting him. I also learned at that moment during an unspoken conversation between my boss and I that my boss was not there to look out for me. He was there to listen to any directive his boss, Dan Snyder, had given to him, at my cost. The next day I learned, when I told a senior coworker about Dan Snyder's sexual advance, that I should "not repeat this story to anyone outside this office door." That was when I also learned there was no one to go to about Dan Snyder's advance, no path to record the incident. So I learned to move on. 30:15 Tiffani Johnston: In the last couple of years, I learned that Dan Snyder, via Senior Vice President, demanded my unedited, enlarged lingerie calendar photo be sent to his office. I learned that this demand was made urgently because they knew that the graphic artists was getting ready to Photoshop my personal areas before the edited proof went before all of the senior VPs and Dan Snyder for approval. 31:40 Brad Baker: My name is Brad Baker and I worked for the Washington Football Team from 2007 to 2009 in the Video Production Department. 32:40 Brad Baker: In the early summer of 2008, a normal production meeting with the video department was wrapping up when Larry Michael, then Executive Producer of Media and one of Snyder's top lieutenants, asked me and two other male producers to stay behind and shut the door. The female members of the department were dismissed. Larry Michael told us that the owner had a special project for us and needed us to edit together a video of the good bits from our cheerleader calendar video shoot. It wasn't hard to put two and two together. Larry Michael, one of Snyder's top confidants, has tasked us with producing a video for Schneider of sexually suggestive footage of cheerleaders, obviously unbeknownst to any of the women involved. One of the senior producers said he'd take care of it and later on, while passing through the editing suite, I saw several images on both the editing monitor and the monitor of our tape deck that featured the cheerleaders posing for their photoshoot, but it was like outtakes, and their breasts and pubic areas were exposed. It became crystal clear that my worst suspicions were true. The video department had been told to edit together lewd footage of the cheerleaders at the request of Dan Snyder. 34:30 Brad Baker: The NFL has refused to release the report of the Wilkinson investigation, even though myself and over 100 other employees were asked by the League to speak to the Wilkinson firm. We all participated because we thought the NFL wanted to know the truth. We believe that the toxic workplace culture and the serious harm it caused would finally become public and that the investigation would end with some kind of report. I mean, they were able to release a report that was 243 pages long...243 pages long...on the PSIs of footballs, the pounds per square inch of footballs. Surely, surely, women being sexually harassed and lewd outtakes videos of female employees created without their consent could muster up some kind of written report right 43:40 Rachel Engelson: I was only 24 and the man who sexually harassed me was old enough to be my father. And he also was considered the voice of the team in the public sphere. So to me, the power that he held in his position and his close personal relationship with Daniel Snyder was enough for me to reconsider anything. And at the time, I didn't know and realize that 55% of victims experienced retaliation after speaking up or making a claim. I still decided to tell my boss about my harasser's public comments about my appearance, his unwanted kisses on the cheek, and emails about special gifts he expected from me. When I told my boss, we agreed that nothing would happen if I reported it to the person who was supposedly running HR at that point. And so my boss called my harasser on the phone. Mind you, we were in two different locations. I was in Maryland and he was in Virginia, so this had to be done via phone call. I was in the room when my boss called him to tell him to leave me alone. And it's a memory I'll never forget, because I distinctly remember hearing my harasser yell through the phone, "what the fuck is she thinking?" and I just kind of muted everything after that. So fearing further harassment and retaliation, I took to hiding from him at public events. I strategically would place myself between colleagues so he couldn't get near me. And I just felt humiliated to have to hide in plain sight in front of all of my colleagues, my clients, and I was just so frustrated that I had to avoid company functions for fear that I would experience sexual harassment again. And most of all, it made me feel worthless. All the hard work I put into my work and the team and I was reduced to my appearance and not my value as an employee. The second time I decided to report harassment was with the arrival of a new executive team, similar to Ana, that was specifically hired to help change the business. I told them about the public comments about my appearance, the unwanted kisses on the cheek, the email, as well as the time at training camp, I was sexually assaulted by the same man that I had previously reported. Those executives were appalled at my treatment and had good intentions to affect change, but they were all fired within six months of reporting this. And after they were fired, and this was reportedly because the old guard at the Washington football team did not want change, I just felt like I had zero protection. I didn't want to go back to avoiding people, clients, events, and even my own job, to keep away from my harasser. So I resigned from my position without another job lined up so I wouldn't have to deal with this. 48:35 Emily Applegate: My name is Emily Applegate. I began working for the Washington Football Team exactly eight years ago as of tomorrow. While my time with the team was short, my experiences there have altered the structure of my entire life. 49:10 Emily Applegate: On a daily basis, I was sexually harassed by my direct boss, the Chief Marketing Officer of the team. Every day, I was forced into uncomfortable conversations about my body and about my appearance. I was told to wear tight outfits to events, so clients had something to look at. I was asked invasive questions about my dating life, specifically if I was interested in older men, because my boss was significantly older than me. I was told I wasn't allowed to wear flat shoes because he liked the way my body looked better when I was in high heels. My photograph was taken without my permission and passed to other executives throughout the team by my boss. 50:20 Emily Applegate: To address the most common question that I get, "why didn't you report to Human Resources?" I didn't report to Human Resources because Dan Snyder created a culture where this behavior was accepted and encouraged. 53:35 Rep. Carolyn Maloney (D-NY): July 1, 2021, the NFL issued a press release announcing the outcome of its investigation into the Washington football team stating and I quote, "none of the managers or executives identified as having engaged in this conduct is still employed at the club." 54:10 Rep. Carolyn Maloney (D-NY): Rep. Carolyn Maloney (D-NY): Is the NFL's statement that wrongdoers have been removed from the Washington Football Team accurate? Tiffani Johnston: Absolutely not. It all started from the top with Dan Snyder, every day, on every single issue. 55:05 Rep. Carolyn Maloney (D-NY): Miss Johnston, I received a letter dated today from Jason Friedman, a former Vice President who worked for the Washington football team for over 20 years, and here is the letter. He was apparently with you the night that Dan Snyder personally harassed you. And here's what he said. He has never told his story publicly before and I want to quote now from his letter. He says "I witnessed Dan Snyder grab the arm of my coworker, Tiffany Johnston, and attempt to pull her into his limousine. This took place over a dinner in Washington DC. I was shocked. Thankfully, Tiffany was able to quickly pull away." 57:35 Rep. Virginia Foxx (R-NC): The proper venue to explore these types of claims is in the courtroom, not before this committee. To my knowledge, there's no pending litigation regarding the events we've heard discussed today, nor does this committee have legislative jurisdiction over this issue. It concerns me that this committee is choosing to spend its limited time having this discussion on the NFL and second guessing decisions when there are multiple Biden-caused catastrophes that desperately need our attention and oversight. And the witnesses here have begged for us to do something and nothing is going to happen as a result of this committee. That's cruel to these people. 1:06:50 Rep. Ralph Norman (R-SC): What do you want us to do? What should Congress do? I can't legislate bad behavior to stop it. Just quickly, what would you do. 1:09:05 Emily Applegate: Thank you for asking this question, actually, because I think it's very important due to the fact that multiple members of the committee has now said that this is not the appropriate venue for us to be sharing the story and that we shouldn't be in the courtroom, things like that. You guys have the opportunity to take this issue on, pass legislation that would help other employees throughout the United States be able to report so they have that opportunity to be in the courtroom, and not only the opportunity to be in the courtroom, but then also to find some justice, because I think we can all agree that a lot of people go through the criminal justice system, and they never see any type of justice when it comes to sexual harassment or sexual assault. So until those two things are taken more seriously by Congress, then nothing is going to happen. But that's why we're here today to ask you to do your job and pass those legislation laws. 1:09:55 Rep. Raja Krishnamoorthi (D-IL): To my dear colleagues on the other side, I just want to point out that we legislate the rules, regulations, and laws that govern workplace safety, as well as non disclosure agreement laws and so forth. 1:15:05 Rep. Yvette Herrell (R-NM): Mr. Chair, this hearing is a farce. And we should be looking at inflation, the economy, Afghanistan, the border crisis and so many other issues that are important to our nation and to our constituents. Instead, we are spending time looking at a single business, investigating it for things that happened a decade ago. And let me restate again the owners of the team fired those responsible. In fact, the owners paid the largest fine ever imposed by the NFL and was suspended indefinitely from operations. This roundtable is ridiculous and it is an abuse of power. 1:35:50 Rep. Debbie Wasserman Schultz (D-FL): You might be aware that part of the reason that the NFL is such a profitable business is that Congress approved legislation in 1961 that allowed an antitrust exemption where professional football teams could pull together when negotiating radio and television contracts. They also receive lucrative federal tax exemptions and taxpayer dollars in the hundreds of millions to build football stadiums that make them billions. Do you believe Congress should be in the business of protecting an organization that puts the interests of billionaire owners above hundreds of women who experienced harassment and abuse? And do you think that those benefits, that we should consider revoking them if they do not make changes to ensure that you have protections when it comes to human resources, sexual assault accountability, making sure that there is an equitable and safe workplace for their employees? 1:41:35 Rep. Hank Johnson (D-GA): Miss Coburn in your op ed, you mentioned that after the secret "good bits" videos hit the news that you and 40 or so other cheerleader alumni came together and some of you were able to mediate a settlement. Were those who settled, were they barred from going to court because of a forced arbitration agreement? Do you know? Melanie Coburn: Yes, many of when those videos were uncovered, that's when I came out publicly. I had the strength and courage to organize them. And yes, they all, they they got together and there was a, you know, mediation and there was a settlement and along with that settlement, they were forced to sign NDAs. 1:45:10 Rep. Jackie Speier (D-CA): Congress can do a lot about this. Next week, all of my colleagues on the other side of the aisle who aren't here now could vote for the bill by Cheri Bustos that is going to require that no NDAs can be forced upon employees for sexual harassment or sexual assault. That would go a long way. We could also investigate the tax exempt status of the National Football League. We gave them that tax exempt status. Evidently, there was $8 billion received last year that was then divided up among the various teams to the tune of about $250 million a team. 1:50:10 Rep. Byron Donalds (R-FL): We have a responsibility here of regulating, specifically, the United States economy when it comes to interstate commerce, to regulating our borders, to actually making sure we coin sound money, that we appropriate for the necessary functions of government. But one of the things that the Constitution of these United States actually precludes us from doing is interfering directly in the affairs of individual businesses, no matter how abhorrent they may be. Now, if there's criminality involved, then that is where the justice system, specifically in this case the civil system, takes those matters. December 18, 2022 @TheGhettoGronk on Twitter Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2023-02-12
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CD267: The Monopoly Powers of Live Nation/Ticketmaster

Live Nation and Ticketmaster merged over a decade ago and Congress is concerned - for good reason - that the company is exerting monopoly powers over the live event industry. In this episode, learn how the merger was allowed to happen in the first place, the problems that industry participants and competitors are having with the company, and what Congress is thinking of doing about it. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! We're Not Wrong Live Show Wednesday, March 1 | 8:00 PM PSTPianoFight Main Stage San Francisco Background Sources Event Ticketing Market Apr 12, 2018. U.S. Government Accountability Office. Live Nation Overview Open Secrets. Open Secrets. Ticketmaster August Brown. Jan 24, 2023. The Seattle Times. Taylor Swift Ashley Cullins. Dec 5, 2022. The Hollywood Reporter. Caitlin Huston. Nov 18, 2022. The Hollywood Reporter. Caitlin Huston. Nov 17, 2022. The Hollywood Reporter. Bad Bunny Maria Abi-Habib. Dec 16, 2022. The New York Times. Dylan Smith. Apr 15, 2021. Digital Music News. BTS Dave Clark. Mar 3, 2022. Ticket News. Fengyen Chiu. Oct 11, 2021. Republic World. Adele Dave Clark. Dec 8, 2021. Ticket News. Pixies Steve Knopper. Nov 1, 2010. Wired. Bruce Sprintsteen Alex Young. Nov 18, 2022. Consequence Sound. Daniel Kreps. Feb 4, 2009. Rolling Stone. Pearl Jam Shawn Garrett. Nov 17, 2022. KIRO 7 News. Eric Boehlert. Dec 28, 1995. Rolling Stone. Reuters. Jul 1, 1994. The New York Times. Ticketmaster Scalper Program Dave Clark. Jul 8, 2021. Ticket News. Rachel Houlihan et al. Oct 18, 2018. CBC News. Dave Seglins et al. Sep 19, 2018. CBC News. Antitrust Policy and Enforcement Doha Mekki. Jan 26, 2023. U.S. Department of Justice. John Kwoka. Dec 19, 2018. Washington Center for Equitable Growth. Jul 5, 2007. Sheppard Mullin. Alan S. Middleton. Jul 3, 2007. Davis Wright Tremaine LLP. Richard B. Blackwell. March 1972 *13(3). William & Mary Law Review. Mergers and Monopoly Power Open Markets Institute. Live Nation-Ticketmaster Merger U.S. Department of Justice. (July 2010) (January 2020) (January 2020) Kroger-Albertsons Merger Julie Creswell. Jan 23, 2023. The New York Times. Russell Redman. Dec 6, 2022. Winsight Grocery Business. Laws Bills Sponsor: Amy Klobuchar (D-MN) Audio Sources January 24, 2023 Senate Committee on the Judiciary Witnesses: Joe Berchtold, President and Chief Financial Officer, Live Nation Entertainment, Inc. Jack Groetzinger, Chief Executive Officer, SeatGeek, Inc. Jerry Mickelson, Chief Executive Officer and President, Jam Productions, LLC Sal Nuzzo, Senior Vice President, The James Madison Institute Vice President for Legal Advocacy, American Antitrust Institute Clyde Lawrence, Singer-songwriter, Lawrence February 24, 2009 Senate Committee on the Judiciary, Subcommittee on Antitrust, Competition Policy and Consumer Rights Witnesses: Irving Azoff, Chief Executive Officer, Ticketmaster Entertainment, Inc. Jerry Mickelson, Chairman and Executive Vice President, JAM Productions Michael Rapino, President and Chief Executive Officer, Live Nation, Inc. David A. Balto, Senior Fellow, Center for American Progress Action Fund Seth Hurwitz, Co-Owner, I.M.P. Productions and 9:30 Club YouTube Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2023-01-29
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CD266: Contriving January 6th

The January 6th Committee investigation is over and four criminal charges against former President Donald Trump have been referred to the Justice Department by the Committee. In this episode, hear a summary of 23 hours of testimony and evidence presented by the Committee which prove that former President Trump went to extraordinary and illegal lengths to remain President, despite losing the 2020 Election. Executive Producers: Michael Constantino, Shelley Stracener, Daniel Slaughter, and Christine Brendle Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Final Committee Report 117th Congress Second Session. Dec 22, 2022. U.S. Government Publishing Office. The January 6th Committee Robert Draper and Luke Broadwater. Dec 23, 2022. The New York Times Magazine. 2020 Election Litigation Oct 27, 2022. The American Bar Association. Daniel Funke. Feb 9, 2021. PolitiFact. January 6th Security Failures February 2022. U.S. Government Accountability Office. Electors and Vote Certification Process Domenico Montanaro. Dec 14, 2020. NPR. May 11, 2021. U.S. National Archives. John Eastman Deepa Shivaram. Jun 17, 2022. NPR. The Federalist Society. Trump and Georgia Matthew Brown. Nov 22, 2022. The Washington Post. Amy Gardner and Paulina Firozi. Jan 5, 2021. The Washington Post. AG Bill Barr Interview Mike Balsamo. Dec 11, 2020. Dec 1, 2020. The Associated Press. Past Electoral Vote Challenges Joseph A. Gambardello. Jun 29, 2022. FactCheck.org. Ted Barrett. Jan 6, 2005. CNN. Fake Electors Amy Sherman. Jan 28, 2022. PolitiFact. Evan Perez and Tierney Sneed. Jan 26, 2022. CNN. Mar 2, 2021. American Oversight. Censure of Cheney & Kinzinger Feb 4 2022. The New York Times. Audio Sources December 19, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol October 13, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Featured speakers: Kayleigh McEnany, Former White House Press Secretary Molly Michael, Former Executive Assistant to the President Pat Cipollone, Former White House Counsel Clips Rep. Liz Cheney (R-WY): Why would Americans assume that our Constitution, and our institutions, and our Republic are invulnerable to another attack? Why would we assume that those institutions will not falter next time? A key lesson of this investigation is this: Our institutions only hold when men and women of good faith make them hold, regardless of the political cost. We have no guarantee that these men and women will be in place next time. Any future president inclined to attempt what Donald Trump did in 2020 has now learned not to install people who could stand in the way. And also please consider this: The rulings of our courts are respected and obeyed, because we as citizens pledged to accept and honor them. Most importantly, our President, who has a constitutional obligation to faithfully execute the laws, swears to accept them. What happens when the President disregards the court's rulings is illegitimate. When he disregards the rule of law, that my fellow citizens, breaks our Republic. January 6 Committee Lawyer: To your knowledge, was the president in that private dining room the whole time that the attack on the Capitol was going on? Or did he ever go to, again only to your knowledge, to the Oval Office, to the White House Situation Room, anywhere else? Kayleigh McEnany: The the best of my recollection, he was always in the dining room. January 6 Committee Lawyer: What did they say, Mr. Meadows or the President, at all during that brief encounter that you were in the dining room? What do you recall? Gen. Keith Kellogg: I think they were really watching the TV. January 6 Committee Lawyer: Do you know whether he was watching TV in the dining room when you talked to him on January sixth? Molly Michael: It's my understanding he was watching television. January 6 Committee Lawyer: When you were in the dining room in these discussions, was the violence of capital visible on the screen on the television? Pat Cipollone: Yes. Rep. Adam Kinzinger (R-IL): A federal appeals court in Pennsylvania wrote, quote, "charges require specific allegations and proof. We have neither here." A federal judge in Wisconsin wrote, quote, "the court has allowed the former President the chance to make his case and he has lost on the merits." Another judge in Michigan, called the claims quote, "nothing but speculation and conjecture that votes for President Trump were either destroyed, discarded or switched to votes for Vice President Biden." A federal judge in Michigan sanctioned nine attorneys, including Sidney Powell, for making frivolous allegations in an election fraud case, describing the case as a historic and profound abuse of the judicial process. Recently, a group of distinguished Republican election lawyers, former judges and elected officials issued a report confirming the findings of the courts. In their report entitled "Lost, Not Stolen," these prominent Republicans analyzed each election challenge and concluded this: Donald Trump and his supporters failed to present evidence of fraud or inaccurate results significant enough to invalidate the results of the 2020 Presidential Election. On December 11, Trump's allies lost a lawsuit in the US Supreme Court that he regarded as his last chance of success in the courts. Alyssa Farah: I remember maybe a week after the election was called, I popped into the Oval just to like, give the President the headlines and see how he was doing and he was looking at the TV and he said, "Can you believe I lost to this effing guy?" Cassidy Hutchinson: Mark raised it with me on the 18th and so following that conversation we were in the motorcade ride driving back to the White House, and I said, like, "Does the President really think that he lost?" And he said, "A lot of times he'll tell me that he lost, but he wants to keep fighting it and he thinks that there might be enough to overturn the election, but, you know, he pretty much has acknowledged that he, that he's lost. July 12, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Jason Van Tatenhove, Former Oath Keepers Spokesperson Stephen Ayres, January 6th Defendant Clips Rep. Stephanie Murphy (D-FL): According to White House visitor logs obtained by the Committee, members of Congress present at the White House on December 21 included Congressmen Brian Babin (TX), Andy Biggs (AZ), Matt Gaetz (FL), Louie Gohmert (TX), Paul Gosar (AZ), Andy Harris (MD), Jody Hice (R-GA), Jim Jordan (OD), and Scott Perry (PA). Then Congresswoman-elect Marjorie Taylor Greene (GA) was also there. Rep. Stephanie Murphy (D-FL): We've asked witnesses what happened during the December 21 meeting and we've learned that part of the discussion centered on the role of the Vice President during the counting of the electoral votes. These members of Congress were discussing what would later be known as the "Eastman Theory," which was being pushed by Attorney John Eastman. June 28, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Cassidy Hutchinson, Former Special Assistant to the President and Aide to the Chief of Staff Clips 9:10 Rep. Liz Cheney (R-WY): Today's witness, Ms. Cassidy Hutchinson, is another Republican and another former member of President Trump's White House staff. Certain of us in the House of Representatives recall that Ms. Hutchinson once worked for House Republican whip Steve Scalise, but she is also a familiar face on Capitol Hill because she held a prominent role in the White House Legislative Affairs Office, and later was the principal aide to President Trump's Chief of Staff, Mark Meadows. 10:10 Rep. Liz Cheney (R-WY): In her role working for the White House Chief of Staff, Miss Hutchinson handled a vast number of sensitive issues. She worked in the West Wing, several steps down the hall from the Oval Office. Miss Hutchinson spoke daily with members of Congress, with high ranking officials in the administration, with senior White House staff, including Mr. Meadows, with White House Counsel lawyers, and with Mr. Tony Ornato, who served as the White House Deputy Chief of Staff. She also worked on a daily basis with members of the Secret Service who were posted in the White House. In short, Miss Hutchinson was in a position to know a great deal about the happenings in the Trump White House. 24:20 Rep. Liz Cheney (R-WY): On January 3, the Capitol Police issued a special event assessment. In that document, the Capitol Police noted that the Proud Boys and other groups planned to be in Washington DC on January 6, and indicated that quote, "unlike previous post election protests, the targets of the pro-Trump supporters are not necessarily the counter protesters, as they were previously, but rather, Congress itself is the target on the Sixth. 27:45 Rep. Liz Cheney (R-WY): Of course the world now knows that the people who attacked the Capitol on January 6 had many different types of weapons. When a President speaks, the Secret Service typically requires those attending to pass through metal detectors known as magnetometers, or mags for short. Rep. Liz Cheney (R-WY): The Select Committee has learned about reports from outside the magnetometers and has obtained police radio transmissions identifying individuals with firearms, including AR-15s near the Ellipse on the morning of January 6. Let's listen. Police Officer #1: Blue jeans and a blue jean jacket and underneath the blue jacket complaintants both saw the top of an AR 15. Police Officer #2: Any white males brown cowboy boots, they had Glock-style pistols in their waistbands. Police Officer #3: 8736 with the message that subject weapon on his right hip. Police Officer #4: Motor one, make sure PPD knows they have an elevated threat in the tree South side of Constitution Avenue. Look for the "Don't tread on me" flag, American flag facemask cowboy boots, weapon on the right side hip. Police Officer #5: I got three men walking down the street in fatigues and carrying AR-15s. Copy at Fourteenth and Independence. Rep. Liz Cheney (R-WY): We're going to show now an exchange of texts between you and Deputy Chief of Staff Ornato, and these text messages were exchanged while you were at the Ellipse. In one text, you write, "but the crowd looks good from this vantage point, as long as we get the shot. He was f---ing furious." But could you tell us, first of all, who it is in the text who was furious? Cassidy Hutchinson: The he in that text that I was referring to was the President. Rep. Liz Cheney (R-WY): And why was he furious, Miss Hutchinson? Cassidy Hutchinson: He was furious because he wanted the arena that we had on the Ellipse to be maxed out at capacity for all attendees. The advanced team had relayed to him that the mags were free flowing. Everybody who wanted to come in had already come in, but he still was angry about the extra space and wanted more people to come in. Cassidy Hutchinson: And that's what Tony [Ornato] had been trying to relate to him [President Trump] that morning. You know, it's not the issue that we encountered on the campaign. We have enough space. They don't want to come in right now, they have weapons they don't want confiscated by the Secret Service. They're fine on the Mall, they can see you on the Mall and they want to march straight to the Capitol from the Mall. But when we were in the off stage announced tent, I was part of a conversation -- I was in the, I was in the vicinity of a conversation -- where I overheard the President say something to the effect of you know, "I don't think that they have weapons. They're not here to hurt me take the effing mags away. Let my people in, they can march to the Capitol from here. Let the people in, take the effing mags away." Rep. Liz Cheney (R-WY): On December 1, 2020, Attorney General Barr said in an interview that the Department of Justice had now not found evidence of widespread election fraud, sufficient to change the outcome of the election. Ms. Hutchinson, how did the President react to hearing that news? Cassidy Hutchinson: I left the office and went down to the dining room, and I noticed that the door was propped open in the valet was inside the dining room changing the tablecloth off of the dining room table. The valet had articulated that the President was extremely angry at the Attorney General's AP interview and had thrown his lunch against the wall. Rep. Liz Cheney (R-WY): Miss Hutchinson, Attorney General Barr described to the Committee the President's angry reaction when he finally met with President Trump. Let's listen. Former Attorney General Bill Barr: And I said, "Look, I I know that you're dissatisfied with me and I'm glad to offer my resignation" and then he pounded the table very hard. Everyone sort of jumped and he said "Accepted." Reporter: Leader McCarthy, Do you condemn this violence? Rep. Kevin McCarthy (R-CA): I completely condemn the violence in the Capitol. What we're currently watching unfold is un-American. I'm disappointed, I'm sad. This is not what our country should look like. This is not who we are. This is not the First Amendment. This has to stop and this has to stop now. Rep. Liz Cheney (R-WY): Did White House Chief of Staff Mark Meadows ever indicate that he was interested in receiving a Presidential Pardon related to January 6? Cassidy Hutchinson: Mr. Meadows did seek that pardon. Yes, ma'am. Rep. Liz Cheney (R-WY): While our committee has seen many witnesses, including many Republicans, testify fully and forthrightly, this has not been true of every witness. And we have received evidence of one particular practice that raises significant concern. Our committee commonly asks witnesses connected to Mr. Trump's administration or campaign whether they'd been contacted by any of their former colleagues, or anyone else who attempted to influence or impact their testimony, without identifying any of the individuals involved. Let me show you a couple of samples of answers we received to this question. First, here's how one witness described phone calls from people interested in that witness's testimony. "What they said to me is, as long as I continue to be a team player, they know I'm on the right team, I'm doing the right thing, I'm protecting who I need to protect, you know, I'll continue to stay in good graces in Trump World. And they have reminded me a couple of times that Trump does read transcripts and just keep that in mind as I proceed through my interviews with the committee." Here's another sample in a different context. This is a call received by one of our witnesses. "A person let me know you have your deposition tomorrow. He wants me to let you know that he's thinking about you. He knows you're loyal, and you're going to do the right thing when you go in for your deposition." I think most Americans know that attempting to influence witnesses to testify untruthfully presents very serious concerns. June 23, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Jeffrey A. Rosen, Former Acting Attorney General Richard Donoghue, Former Acting Deputy Attorney General Steven Engel, Former Assistant Attorney General for the Office of Legal Counsel Eric Herschmann, Former White House Senior Advisor Clips Rep. Bennie Thompson (D-MS): From the time you took over from Attorney General Barr until January 3, how often did President Trump contact you or the Department to push allegations of election fraud? Former Acting Attorney General Jeffrey Rosen: So between December 23 and January 3, the president either called me or met with me virtually every day, with one or two exceptions like Christmas Day Rep. Andy Biggs (R-AZ): Again, I join my colleagues in calling on Attorney General Barr to immediately let us know what he's doing. Rep. Paul Gosar (R-AZ): We're already working on challenging the certified electors. And what about the court? How pathetic are the courts? Rep. Matt Gaetz (R-FL): January 6, I'm joining with the fighters in the Congress, and we are going to object to electors from states that didn't run clean elections. Democracy is left undefended if we accept the result of a stolen election without fighting with every bit of vigor we can muster. Rep. Jim Jordan (R-OH): The ultimate date of significance is January 6. This is how the process works. The ultimate arbiter here, the ultimate check and balance, is the United States Congress. And when something is done in an unconstitutional fashion, which happened in several of these states, we have a duty to step forward and have this debate and have this vote on the 6th of January. Former Acting Deputy Attorney General Richard Donoghue: So both the Acting Attorney General [Rosen] and I tried to explain to the President on this occasion, and on several other occasions that the Justice Department has a very important, very specific, but very limited role in these elections. States run their elections. We are not quality control for the states. We are obviously interested in and have a mission that relates to criminal conduct in relation to federal elections. We also have related civil rights responsibilities. So we do have an important role, but the bottom line was if a state ran their election in such a way that it was defective, that is to the state or Congress to correct. It is not for the Justice Department to step in. And I certainly understood the President, as a layman, not understanding why the Justice Department didn't have at least a civil role to step in and bring suit on behalf of the American people. We tried to explain that to him. The American people do not constitute the client for the United States Justice Department. The one and only client of the United States Justice Department is the United States government. And the United States government does not have standing, as we were repeatedly told by our internal teams. Office of Legal Counsel, led by Steve Engel, as well as the Office of the Solicitor General researched it and gave us thorough clear opinions that we simply did not have standing and we tried to explain that to the President on numerous occasions. Rep. Adam Kinzinger (R-IL): Let's take a look at another one of your notes. You also noted that Mr. Rosen said to Mr. Trump, quote, "DOJ can't and won't snap its fingers and change the outcome of the election." How did the President respond to that, sir? Former Acting Deputy Attorney General Richard Donoghue: He responded very quickly and said, essentially, that's not what I'm asking you to do. What I'm just asking you to do is just say it was corrupt and leave the rest to me and the Republican Congressmen. Former Acting Deputy Attorney General Richard Donoghue: There were isolated instances of fraud. None of them came close to calling into question the outcome of the election in any individual State. January 6 Committee Lawyer: And was representative Gaetz requesting a pardon? Eric Herschmann: Believe so. The general tone was, we may get prosecuted because we were defensive of, you know, the President's positions on these things. A pardon that he was discussing, requesting, was as broad as you could describe, from the beginning of time up until today, for any and all things. He had mentioned Nixon and I said Nixon's pardon was never nearly that broad. January 6 Committee Lawyer: And are you aware of any members of Congress seeking pardons? Cassidy Hutchinson: I guess Mr. Gaetz and Mr. Brooks, I know, both advocated for, there to be a blanket pardon for members involved in that meeting and a handful of other members that weren't at the December 21 meeting as the preemptive pardons. Mr. Gaetz was personally pushing for a pardon and he was doing so since early December. I'm not sure why. Mr. Gaetz had reached out to me to ask if he could have a meeting with Mr. Meadows about receiving a Presidential pardon. January 6 Committee Lawyer: Did they all contact you? Cassidy Hutchinson: Not all of them, but several of them did. January 6 Committee Lawyer: So you'd be mentioned Mr. Gaetz and Mr. Brooks. Cassidy Hutchinson: Mr. Biggs did. Mr. Jordan talks about congressional pardons but he never asked me for one. It was more for an update on whether the White House is going to pardon members of Congress. Mr. Gohmert asked for one as well. Mr. Perry asked for a pardon too, I'm sorry. January 6 Committee Lawyer: Mr. Perry, did he talk to you directly? Cassidy Hutchinson: Yes, he did. Rep. Adam Kinzinger (R-IL): Mr. Clark was the acting head of the Civil Division and head of Environmental and Natural Resources Division at the Department of Justice. Do either of those divisions have any role whatsoever in investigating election fraud, sir? Former Acting Attorney General Jeffrey Rosen: No. And and to my awareness, Jeff Clark had had no prior involvement of any kind with regard to the work that the department was doing. Rep. Adam Kinzinger (R-IL): Is there a policy that governs who can have contact directly with the White House? Former Acting Attorney General Jeffrey Rosen: Yes. So across many administrations for a long period of time, there's a policy that particularly with regard to criminal investigations restricts at both the White House and the Justice Department and those more sensitive issues to the highest ranks. So for criminal matters, the policy for a long time has been that only the Attorney General and the Deputy Attorney General from the DOJ side can have conversations about criminal matters with the White House, or the Attorney General and the Deputy Attorney General can authorize someone for a specific item with their permission. But the idea is to make sure that the top rung of the Justice Department knows about it, and is in the thing to control it and make sure only appropriate things are done. Steven Engel: The purpose of these these policies is to keep these communications as infrequent, and at the highest levels as possible, just to make sure that people who are less careful about it who don't really understand these implications, such as Mr. Clark, don't run afoul of those contact policies. Former Acting Attorney General Jeffrey Rosen: He acknowledged that shortly before Christmas, he had gone to a meeting in the Oval Office with the President. That, of course, surprised me. And I asked him, How did that happen? And he was defensive, he said it had been unplanned, that he had been talking to someone he referred to as "General Perry," but I believe is Congressman Perry, and that, unbeknownst to him, he was asked to go to a meeting and he didn't know it, but it turned out it was at the Oval -- he found himself at the Oval Office. And he was apologetic for that. And I said, Well, you didn't tell me about it. It wasn't authorized. And you didn't even tell me after the fact. You know, this is not not appropriate. But he was contrite and said it had been inadvertent and it would not happen again and that if anyone asked him to go to such a meeting, he would notify [Former Acting Deputy Attorney General] Rich Donohue and me. Rep. Adam Kinzinger (R-IL): On the same day Acting Attorney General Rosen told Mr. Clark to stop talking to the White House, Representative Perry was urging Chief of Staff Mark Meadows to elevate Clark within the Department of Justice. You can now see on the screen behind me a series of tasks between representative Perry and Mr. Meadows. They show that Representative Perry requested that Mr. Clark be elevated within the department. Representative Perry tells Mr. Meadows on December 26, that quote, "Mark, just checking in as time continues to count down, 11 days to January 6 and 25 days to inauguration. We've got to get going!" Representative Perry followed up and says quote, "Mark, you should call Jeff. I just got off the phone with him and he explained to me why the principal deputy won't work especially with the FBI. They will view it as not having the authority to enforce what needs to be done." Mr. Meadows responds with "I got it. I think I understand. Let me work on the deputy position." Rep. Liz Cheney (R-WY): Mr. Donohue on December 28, Mr. Clark emailed you and Mr. Rosen a draft letter that he wanted you to sign and send to Georgia State officials. This letter claims that the US Department of Justice's investigations have quote, "identified significant concerns that may have impacted the outcome of the election in multiple States, including the state of Georgia." The letter also said this: quote, "in light of these developments, the Department recommends that the Georgia General Assembly should convene in special session," end quote, and consider approving a new slate of electors. Steven Engel: The States had chosen their electors, the electors had been certified, they'd cast their votes, they had been sent to Washington DC. Neither Georgia nor any of the other States on December 28, or whenever this was, was in a position to change those votes. Essentially, the election had happened. The only thing that hadn't happened was the formal counting of the votes. Former Acting Deputy Attorney General Richard Donoghue: I had to read both the email and the attached letter twice to make sure I really understood what he was proposing because it was so extreme to me, I had a hard time getting my head around it initially. But I read it and I did understand it for what he intended and I had to sit down and sort of compose what I thought was an appropriate response. In my response, I explained a number of reasons this is not the Department's role to suggest or dictate to State legislatures how they should select their electors. But more importantly, this was not based on fact, that this was actually contrary to the facts, as developed by Department investigations over the last several weeks and months. So I responded to that. And for the Department to insert itself into the political process's way, I think would have had grave consequences for the country. It may very well have spiraled us into a Constitutional crisis. And I wanted to make sure that he understood the gravity of the situation because he didn't seem to really appreciate it. Rep. Adam Kinzinger (R-IL): President Trump rushed back early from Mar-a-Lago on December 31, and called an emergency meeting with the Department's leadership. Mr. Donohue, during this meeting, did the President tell you that he would remove you and Mr. Rosen because you weren't declaring there was election fraud? Former Acting Deputy Attorney General Richard Donoghue: Toward the end of the meeting, the President, again was getting very agitated. And he said, "People tell me I should just get rid of both of you. I should just remove you and make a change in the leadership, put Jeff Clark and maybe something will finally get done." Rep. Adam Kinzinger (R-IL): Mr. Rosen during a January 2 meeting with Mr. Clark, did you confront him again about his contact with the President? And if so, can you describe that? Former Acting Attorney General Jeffrey Rosen: We had -- it was a contentious meeting where we were chastising him that he was insubordinate, he was out of line, he had not honored his own representations of what he would do. And he raised again, that he thought that letter should go out. And we were not receptive to that. Rep. Adam Kinzinger (R-IL): So in that meeting, did Mr. Clark say he would turn down the President's offer if you reversed your position and sign the letter? Former Acting Attorney General Jeffrey Rosen: Yes. Subsequently, he told me that on the on Sunday the 3rd. He told me that the timeline had moved up, and that the President had offered him the job and that he was accepting it. Rep. Adam Kinzinger (R-IL): White House Call Logs obtained by the Committee show that by 4:19pm, on January 3, the White House had already begun referring to Mr. Clark as the Acting Attorney General. Let's ask about that, what was your reaction to that? Former Acting Attorney General Jeffrey Rosen: Well, you know, on the one hand, I wasn't going to accept being fired by my subordinate. So I wanted to talk to the President directly. Former Acting Deputy Attorney General Richard Donoghue: So the four of us knew, but no one else, aside from Jeff Clark of course, knew what was going on until late that Sunday afternoon. We chose to keep a close hold, because we didn't want to create concern or panic in the Justice Department leadership. But at this point, I asked the Acting AG [Rosen], what else can I do to help prepare for this meeting in the Oval Office, and he said, You and Pat [Cipollone] should get the Assistant Attorney Generals on the phone, and it's time to let them know what's going on. Let's find out what they may do if there's a change in leadership, because that will help inform the conversation at the Oval Office. We got most, not all, but most of the AAGs on the phone. We very quickly explained to them what the situation was. [They] essentially said they would leave, they would resign en mass if the President made that change in the department leadership. Rep. Adam Kinzinger (R-IL): DOJ leadership arrived at the White House. Former Acting Deputy Attorney General Richard Donoghue: The conversation this point was really about whether the President should remove Jeff Rosen and replace him with Jeff Clark. And everyone in the room, I think, understood that that meant that letter would go out. And at some point, the conversation turned to whether Jeff Clark was even qualified, competent to run the Justice Department, which in my mind, he clearly was not. And it was a heated conversation. I thought it was useful to point out to the President that Jeff Clark simply didn't have the skills, the ability and the experience to run the Department. And so I said, "Mr. President, you're talking about putting a man in that seat who has never tried a criminal case, who's never conducted a criminal investigation, he's telling you that he's going to take charge of the department, 115,000 employees, including the entire FBI, and turn the place on a dime and conduct nationwide criminal investigations that will produce results in a matter of days. It's impossible. It's absurd. It's not going to happen, and it's going to fail. He has never been in front of a trial jury, a grand jury. He's never even been to Chris Wray's office." I said at one point, "if you walked into Chris Wray's office, one, would you know how to get there and, two, if you got there, would he even know who you are? And you really think that the FBI is going to suddenly start following you orders? It's not going to happen. He's not competent." And that's the point at which Mr. Clark tried to defend himself by saying, "Well, I've been involved in very significant civil and environmental litigation. I've argued many appeals and appellate courts and things of that nature." And then I pointed out that, yes, he was an environmental lawyer, and I didn't think that was appropriate background to be running in the United States Justice Department. Rep. Adam Kinzinger (R-IL): Did anybody in there support Mr. Clark? Former Acting Deputy Attorney General Richard Donoghue: No one. Along those lines, he [former President Trump] said, "so suppose I do this, suppose I replace him, Jeff Rosen, with him, Jeff Clark, what would you do?" And I said, "Mr. President, I would resign immediately. I'm not working one minute for this guy [Clark], who I just declared was completely incompetent." And so the President immediately turned to to Mr. Engel. Steven Engel: My recollection is that when the President turned to me and said, "Steve, you wouldn't leave, would you?" I said, "Mr. President, I've been with you through four Attorneys General, including two Acting Attorneys General, but I couldn't be part of this." Former Acting Deputy Attorney General Richard Donoghue: And I said, and we're not the only ones. No one cares if we resign. If Steve and I go, that's fine, it doesn't matter. But I'm telling you what's going to happen. You're gonna lose your entire Department leadership, every single AAG will walk out on you. Your entire Department of leadership will walk out within hours." And I said, "Mr. President, within 24...48...72 hours, you could have hundreds and hundreds of resignations of the leadership of your entire Justice Department because of your actions. What's that going to say about you?" Former Acting Deputy Attorney General Richard Donoghue: And then the other thing that I said was that, you know, look, all anyone is going to sort of think about when they see this...no one is going to read this letter....all anyone is going to think is that you went through two Attorneys General in two weeks until you found the environmental guy to sign this thing. And so the story is not going to be that the Department of Justice has found massive corruption that would have changed results of the election. It's going to be the disaster of Jeff Clark. I think at that point Pat Cipollone said, "Yeah, this is a murder suicide pact, this letter." Rep. Adam Kinzinger (R-IL): Mr. Cipollone, the White House Counsel, told the Committee that Mr. Engels response had a noticeable impact on the President, that this was a turning point in the conversation. Mr. Donohue, towards the end of this meeting, did the President asked you what was going to happen to Mr. Clark? Former Acting Deputy Attorney General Richard Donoghue: He did. When we finally got to, I'd say, the last 15 minutes of the meeting, the President's decision was apparent, he announced it. Jeff Clark tried to scrape his way back and asked the President to reconsider. The President double down said "No, I've made my decision. That's it. We're not going to do it." And then he turned to me and said, "so what happens to him now?" Meaning Mr. Clark. He understood that Mr. Clark reported to me. And I didn't initially understand the question. I said, "Mr. President?" and he said, "Are you going to fire him?" And I said, "I don't have the authority to fire him. He's the Senate confirmed Assistant Attorney General." And he said, "Well, who has the authority to fire him?" And I said, "Only you do, sir." And he said, "Well, I'm not going to fire him." I said, "Alright, well, then we should all go back to work." June 21, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Rusty Bowers, Arizona House Speaker Brad Raffensperger, Georgia Secretary of State Gabriel Sterling, Georgia Secretary of State Chief Operating Officer Wandrea ArShaye, ?Shaye? Moss, former Georgia election worker Ronna Romney McDaniel, RNC Chair Justin Clark, former Trump Campaign lawyer Robert Sinners, former Trump campaign staffer Andrew Hitt, Former Wisconsin Republican Party Chair Laura Cox, Former Michigan Republican Party Chair Josh Roselman, Investigative Counsel for the J6 Committee John Eastman, Former Trump Lawyer Mike Shirkey, Majority Leader of the Michigan Senate Angela McCallum, Trump Campaign caller Rudy Giuliani Clips Josh Roselman: My name is Josh Roselman, I'm an Investigative Counsel for the House Select Committee to investigate the January 6 attack on the United States Capitol. Beginning in late November 2020. The President and his lawyers started appearing before state legislators, urging them to give their electoral votes to Trump, even though he lost the popular vote. This was a strategy with both practical and legal elements. The Select Committee has obtained an email from just two days after the election, in which a Trump campaign lawyer named Cleata Mitchell asked another Trump lawyer, John Eastman, to write a memo justifying the idea. Eastman prepared a memo attempting to justify this strategy, which was circulated to the Trump White House, Rudy Giuliani's legal team, and state legislators around the country and he appeared before the Georgia State Legislature to advocate for it publicly. John Eastman: You could also do what the Florida Legislature was prepared to do, which is to adopt a slate of electors yourself. And when you add in the mix of the significant statistical anomalies in sworn affidavits and video evidence of outright election fraud, I don't think it's just your authority to do that, but quite frankly, I think you have a duty to do that to protect the integrity of the election here in Georgia. Josh Roselman: But Republican officials in several states released public statements recognizing that President Trump's proposal was unlawful. For instance, Georgia Governor Brian Kemp called the proposal unconstitutional, while Arizona House Speaker Rusty Bowers wrote that the idea would undermine the rule of law. The pressure campaign to get state legislators to go along with this scheme intensified when President Trump invited delegations from Michigan and Pennsylvania to the White House. January 6 Committee Lawyer: Either you or speaker Chatfield, did you make the point to the President, that you were not going to do anything that violated Michigan law? Mike Shirkey: I believe we did. Whether or not it was those exact words or not, I think the words that I would have more likely used is, "we are going to follow the law." Josh Roselman: Nevertheless, the pressure continued. The next day President Trump tweeted quote, "hopefully the Courts and/or Legislatures will have the COURAGE to do what has to be done to maintain the integrity of our Elections, and the United States of America itself. THE WORLD IS WATCHING!!!!" He posted multiple messages on Facebook, listing the contact information for state officials and urging his supporters to contact them to quote "demand a vote on decertification." These efforts also involves targeted outreach to state legislators from President Trump's lawyers and from Trump himself. Angela McCallum: Hi, my name is Angela McCallum, I'm calling from Trump campaign headquarters in Washington DC. You do have the power to reclaim your authority and send us a slate of Electors that will support President Trump and Vice President Pence. Josh Roselman: Another legislator, Pennsylvania House Speaker Brian Cutler, received daily voicemails from Trump's lawyers in the last week of November. Cutler felt that the outreach was inappropriate and asked his lawyers to tell Rudy Giuliani to stop calling, but Giuliani continued to reach out. Rudy Giuliani: I understand that you don't want to talk to me now. I just want to bring some facts to your attention and talk to you as a fellow Republican. Josh Roselman: These ads were another element in the effort. The Trump campaign spent millions of dollars running ads online and on television. Commercial Announcer: The evidence is overwhelming. Call your governor and legislators demand they inspect the machines and hear the evidence. Fake electors scheme Casey Lucier: My name is Casey Lucier. I'm an Investigative Counsel for the House Select Committee to Investigate the January 6 Attack on the United States Capitol. On November 18, a lawyer working with the Trump campaign named Kenneth Chesebro wrote a memo arguing that the Trump campaign should organize its own electors in the swing states that President Trump had lost. The Select Committee received testimony that those close to President Trump began planning to organize fake electors for Trump in states that Biden won in the weeks after the election. At the President's direct request, the RNC assisted the campaign in coordinating this effort. January 6 Committee Lawyer: What did the President say when he called you? Ronna Romney McDaniel: Essentially, he turned the call over to Mr. Eastman, who then proceeded to talk about the importance of the RNC helping the campaign gather these contingent electors in case any of the legal challenges that were ongoing change the result of any dates, I think more just helping them reach out and assemble them. But the My understanding is the campaign did take the lead, and we just were helping them in that in that role. Casey Lucier: As President Trump and his supporters continued to lose lawsuits, some campaign lawyers became convinced that convening electors in states that Trump lost was no longer appropriate. Justin Clark: I just remember I either replied or called somebody saying, unless we have litigation pending this, like in the states, like, I don't think this is appropriate, or no, this isn't the right thing to do. I'm out. Matt Morgan: At that point, I had Josh Findlay email Mr. Chesebro, politely, to say, "This is your task. You are responsible for the Electoral College issues moving forward". And this was my way of taking that responsibility to zero. Casey Lucier: The Committee learned the White House Counsel's Office also felt the plan was potentially illegal. January 6 Committee Lawyer: And so to be clear, did you hear the White House Counsel's office saying that this plan to have alternate electors meet and cast votes for Donald Trump in states that he had lost was not legally sound? Cassidy Hutchinson: Yes, sir. Casey Lucier: The Select Committee interviewed several of the individual fake electors, as well as Trump campaign staff who helped organize the effort. Robert Sinners: We were just, you know, kind of useful idiots or rubes at that point. You know, a strong part of me really feels that it's just kind of as the road continued, and as that was failure, failure, failure that that got formulated as what do we have on the table? Let's just do it. January 6 Committee Lawyer: And now after what we've told you today about the Select Committee's investigation about the conclusion of the professional lawyers on the campaign staff, Justin Clark, Matt Morgan and Josh Findlay, about their unwillingness to participate in the convening of these electors, how does that contribute to your understanding of these issues? Robert Sinners: I'm angry, I'm angry. Because I think in a sense, you know, no one really cared if people were potentially putting themselves in jeopardy. January 6 Committee Lawyer: Would you have not wanted to participate in this any further, as well? Robert Sinners: I absolutely would not have had I know that the three main lawyers for the campaign that I've spoken to in the past, and were leading up, we're not on board. Yeah. Andrew Hitt: I was told that these would only count if a court ruled in our favor. So that would have been using our electors. Well, it would have been using our electors in ways that we weren't told about and we wouldn't have supported. Casey Lucier: Documents obtained by the Select Committee indicate that instructions were given to the electors in several states that they needed to cast their ballots in complete secrecy. Because the scheme involved fake electors, those participating in certain states had no way to comply with state election laws, like where the electors were supposed to meet. One group of fake electors even considered hiding overnight to ensure that they could access the State Capitol, as required in Michigan. January 6 Committee Lawyer: Did Mr. Norton say who he was working with at all on this effort to have electors meet? Laura Cox: He said he was working with the President's campaign. He told me that the Michigan Republican electors were planning to meet in the Capitol and hide overnight so that they could fulfill the role of casting their vote per law in the Michigan chambers and I told him in no uncertain terms that that was insane and inappropriate. Casey Lucier: In one state, the fake electors even asked for a promise that the campaign would pay their legal fees if they got sued or charged with a crime. Ultimately, fake electors did meet on December 14, 2020 in Arizona, Georgia, Michigan, Pennsylvania, New Mexico, Nevada and Wisconsin. At the request of the Trump campaign, the electors from these battleground states signed documents falsely asserting that they were the quote, "duly elected" electors from their state and submitted them to the National Archives and to Vice President Pence in his capacity as President of the Senate. In an email produced to the Select Committee, Dr. Eastman told the Trump campaign representative that it did not matter that the electors had not been approved by a state authority. Quote, "the fact that we have multiple slates of electors demonstrates the uncertainty of either. That should be enough." He urged that Pence "act boldly and be challenged." Documents produced to the Select Committee show that the Trump campaign took steps to ensure that the physical copies of the fake electors' electoral votes from two states were delivered to Washington for January 6. Text messages exchanged between Republican Party officials in Wisconsin show that on January 4, the Trump campaign asked for someone to fly their fake electors' documents to Washington. A staffer for Wisconsin Senator Ron Johnson texted a staffer for Vice President Pence just minutes before the beginning of the Joint Session. This staffer stated that Senator Johnson wished to hand deliver to the Vice President the fake electors' votes from Michigan and Wisconsin. The Vice President's aide unambiguously instructed them not to deliver the fake votes to the Vice President. Even though the fake elector slates were transmitted to Congress and the Executive Branch, the Vice President held firm and his position that his role was to count lawfully submitted electoral votes. Rep. Bennie Thompson (D-MS): Brad Raffensperger is the 29th Secretary of State of Georgia, serving in this role since 2019. As an elected official, and a Republican Secretary, Raffensperger is responsible for supervising elections in Georgia and maintaining the state's public records. Rep. Bennie Thompson (D-MS): Speaker Bowers, thank you for being with us today. You're the speaker of the Arizona House and a self-described conservative Republican. You campaigned for President Trump and with him during the 2020 election. Is it fair to say that you wanted Donald Trump to win a second term in office? Please? Rusty Bowers: Yes, sir. Thank you. Rep. Bennie Thompson (D-MS): And is it your understanding that President Biden was the winner of the popular vote in Arizona in 2020? Rusty Bowers: Yes, sir. Rep. Adam Schiff (D-CA): Before we begin with the questions that I had prepared for you, I want to ask you about a statement that former President Trump issued, which I received just prior to the hearing. Former President Trump begins by calling you a RINO, Republican in Name Only. He then references a conversation in November 2020, in which he claims that you told him that the election was rigged, and that he had won Arizona. To quote the former President, "during the conversation, he told me the election was rigged and that I won Arizona," unquote. Is that false? Rusty Bowers: Anywhere, anyone, anytime that has said that I said the election was rigged, that would not be true. Rep. Adam Schiff (D-CA): And when the former President, in his statement today, claimed that you told him that he won Arizona, is that also false? Rusty Bowers: That is also false. Rep. Adam Schiff (D-CA): Mr. Bowers, I understand that after the election, you received a phone call from President Trump and Rudy Giuliani, in which they discussed the result of the presidential election in Arizona. If you would, tell us about that call. Rusty Bowers: Mr. Giuliani came on first. And niceties...then Mr. Trump, President Trump, then-President Trump came on. Rep. Adam Schiff (D-CA): During the conversation did you ask Mr. Giuliani for proof of these allegations of fraud that he was making? Rusty Bowers: On multiple occasions, yes. Rep. Adam Schiff (D-CA): And when you asked him for evidence of this fraud, what did he say? Rusty Bowers: He said that they did have proof. And I asked him, "Do you have names?" [He said] for example, we have 200,000 illegal immigrants, some large number, five or six thousand, dead people, etc. And I said, "Do you have their names?" Yes. "Will you give them to me?" Yes. The President interrupted and said, "Give the man what he needs Rudy." He said, "I will." And that happened on at least two occasions, that interchange in the conversation. Rep. Adam Schiff (D-CA): Did you ever receive from him that evidence either during the call, after the call, or to this day? Rusty Bowers: Never. Rep. Adam Schiff (D-CA): What was the ask during this call? Rusty Bowers: The ones I remember, were first, that we would hold -- that I would allow an official committee at at the Capitol so that they could hear this evidence, and that we could take action thereafter. I said, "to what end? To what end the hearing." He said, well, we have heard by an official high up in the Republican legislature that there is a legal theory or a legal ability in Arizona, that you can remove the the electors of President Biden and replace them. And we would like to have the legitimate opportunity, through the committee, to come to that end and and remove that. And I said that's, that's something that's totally new to me. I've never heard of any such thing. And I would never do anything of such magnitude without deep consultation with qualified attorneys. And I said, I've got some good attorneys, and I'm going to give you their names. But you're asking me to do something against my oath and I will not break my oath. Rep. Adam Schiff (D-CA): Did you also receive a call from US Representative Andy Biggs of Arizona on the morning of January 6? Rusty Bowers: I did. Rep. Adam Schiff (D-CA): And what did Mr. Biggs asked you to do? Rusty Bowers: I believe that was the day that the vote was occurring in each state to have certification or to declare the certification of the electors. And he asked if I would sign on both to a letter that had been sent from my State, and/or that I would support the decertification of the electors. And I said I would not. Rep. Adam Schiff (D-CA): Speaking Bowers, did the President call you again later in December? Rusty Bowers: He did, sir. Rep. Adam Schiff (D-CA): Did you tell the president in that second call that you supported him, that you voted for him, but that you are not going to do anything illegal for him? Rusty Bowers: I did, sir. Rep. Adam Schiff (D-CA): Nevertheless, his lawyer John Eastman called you some days later, and what did Dr. Eastman want you to do? Rusty Bowers: That we would, in fact, take a vote to overthrow -- or I shouldn't say overthrow -- that we would decertify the electors, and that we had plenary authority to do so. But I said, "What would you have me do?" And he said, "Just do it and let the court sorted out." And I said, "You're asking me to do something that's never been done in history, the history of the United States. And I'm going to put my state through that without sufficient proof? And that's going to be good enough with me? That I would, I would put us through that, my state that I swore to uphold, both in Constitution and in law? No, sir." Rep. Adam Schiff (D-CA): I want to look even more deeply at the fake electoral scheme. Every four years, citizens from all over the United States go to the polls to elect the President. Under our Constitution, when we cast our votes for president, we are actually voting to send electors pledged to our preferred candidate to the Electoral College. In December, the electors in each state meet, cast their votes, and send those votes to Washington. There was only one legitimate slate of electors from each state. On the Sixth day of January, Congress meets in a joint session to count those votes, and the winner of the Electoral College vote becomes the president. Rep. Bennie Thompson (D-MS): Secretary Raffensburger, thank you for being here today. You've been a public servant in Georgia since 2015, serving first as a member of the Georgia House of Representatives, and then since January 2019, as Georgia Secretary of State as a self described conservative Republican. Is it fair to say that you wanted President Trump to win the 2020 election? Brad Raffensperger: Yes, it is. Rep. Adam Schiff (D-CA): Secretary Raffensperger, did Joe Biden win the 2020 presidential election in Georgia and by what margin? Brad Raffensperger: President Biden carried the state of Georgia by approximately 12,000 votes. Rep. Adam Schiff (D-CA): Bear in mind as we discuss this call today that by this point in time, early January, the election in Georgia had already been certified. But perhaps more important, the President of the United States had already been told repeatedly by his own top Justice Department officials that the claims he was about to make to you about massive fraud in Georgia were completely false. June 16, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Greg Jacob, Former Counsel to Vice President Mike Pence J. Michael Luttig, Retired judge for the U.S. Court of Appeals for the Fourth Circuit and informal advisor to Mike Pence Julie Radford, Former Chief of Staff for Ivanka Trump Eric Herschmann, Former White House Senior Advisor Nicholas Luna, Former Assistant to President Trump Gen. Keith Kellogg, Former National Security Advisor to VP Pence Clips 16:45 Rep. Bennie Thompson (D-MS): Greg Jacob was Counsel to Vice President Pence. He conducted a thorough analysis of the role of the Vice President in the Joint Session of Congress under the Constitution, the Electoral Count Act, and 230 years of historical practice. But he also has firsthand information about the attack on the Capitol because he lived through it. He was with the Vice President and his own life was in danger. 31:05 Rep. Liz Cheney (R-WY): Eastman was, at the time, a law professor at Chapman University Law School. He prepared a memo outlining the nonsensical theory that the Vice President could decide the outcome of the election at the Joint Session of Congress on January 6. 32:50 Rep. Liz Cheney (R-WY): Dr. Eastman himself admitted in an email that the fake electors had no legal weight. Referring to the fake electors as, quote "dead on arrival in Congress" end quote, because they did not have a certification from their States. 46:40 Greg Jacob: We had a constitutional crisis in 1876 because in that year, multiple slates of electors were certified by multiple slates [sic]. And when it came time to count those votes, the antecedent question of "which ones?" had to be answered. That required the appointment of an independent commission. That commission had to resolve that question. And the purpose of the Electoral Count Act of 1887 had been to resolve those latent ambiguities. Now I'm in complete agreement with Judge Luttig. It is unambiguous that the Vice President does not have the authority to reject electors. There is no suggestion of any kind that it does. There is no mention of rejecting or objecting to electors anywhere in the 12th amendment. And so the notion that the Vice President could do that certainly is not in the text. But the problem that we had and that John Eastman raised in our discussions was, we had all seen that in Congress in 2000, in 2004, in 2016, there had been objections raised to various states. And those had even been debated in 2004. And so, here you have an Amendment that says nothing about objecting or rejecting. And yet we did have some recent practice of that happening within the terms of the Electoral Count Act. So we started with that. 1:20:45 Greg Jacob: He again tried to say, but I don't think the courts will get involved in this. They'll invoke the political question doctrine and so if the courts stay out of it, that will mean that we'll have the 10 days for the States to weigh in and resolve it. And then, you know, they'll send back the Trump slates of electors, and the people will be able to accept that. I expressed my vociferous disagreement with that point, I did not think that this was a political question. Among other things, if the courts did not step in to resolve this, there was nobody else to resolve it. You would be in a situation where you have a standoff between the President of the United States and, counterfactually, the Vice President of the United States saying that we've exercised authorities that, Constitutionally, we think we have by which we have deemed ourselves the winners of the election. You would have an opposed House and Senate disagreeing with that. You would have State legislatures that, to that point, I mean, Republican leaders across those legislatures had put together, had put out statements, and we collected these for the Vice President as well, that the people had spoken in their States and that they had no intention of reversing the outcome of the election. We did receive some signed letters that Mr. Eastman forwarded us by minorities of leaders in those States, but no State had any legislative house that indicated that added any interest in it. So you would have had just a an unprecedented Constitutional jump ball situation with that standoff. And as I expressed to him, that issue might well then have to be decided in the streets. Because if we can't work it out politically, we've already seen how charged up people are about this election. And so it would be a disastrous situation to be in. So I said, I think the courts will intervene. I do not see a commitment in the Constitution of the question, whether the Vice President has that authority to some other actor to resolve there. There's arguments about whether Congress and the Vice President jointly have a Constitutional commitment to generally decide electoral vote issues. I don't think that they have any authority to object or reject them. I don't see it in the 12th Amendment, but nonetheless. And I concluded by saying, "John, in light of everything that we've discussed, can't we just both agree that this is a terrible idea?" And he couldn't quite bring himself to say yes to that. But he very clearly said, "Well, yeah, I see we're not going to be able to persuade you to do this." And that was how the meeting concluded. Rep. Pete Aguilar (D-CA): We understand that the Vice President started his day on January 4 with a rally in Georgia for the Republican candidates in the US Senate runoff. When the Vice President returned to Washington, he was summoned to meet with the President regarding the upcoming Joint Session of Congress. Mr. Jacob, during that meeting between the President and the Vice President, what theories did Dr. Eastman present regarding the role of the Vice President in counting the electoral votes? Greg Jacob: During the meeting on January 4, Mr. Eastman was opining there were two legally viable arguments as to authorities that the Vice President could exercise two days later on January 6. One of them was that he could reject electoral votes outright. The other was that he could use his capacity as Presiding Officer to suspend the proceedings and declare essentially a 10-day recess during which States that he deemed to be disputed, there was a list of five to seven states, the exact number changed from conversation to conversation, but that the Vice President could sort of issue and demand to the State Legislatures in those States to re-examine the election and declare who had won each of those States. So he said that both of those were legally viable options. He said that he did not recommend, upon questioning, he did not recommend what he called the "more aggressive option," which was reject outright, because he thought that that would be less politically palatable. The imprimatur of State Legislature authority would be necessary to ultimately have public acceptance of an outcome in favor of President Trump. And so he advocated that the preferred course of action would be the procedural route of suspending the Joint Session and sending the election back to the States. And again, the Vice President's first instinct here is so decisive on this question, there's just no way that the framers of the Constitution who divided power and authority, who separated it out, who had broken away from George III, and declared him to be a tyrant, there was no way that they would have put in the hands of one person, the authority to determine who was going to be President of the United States. And then we went to history. We examined every single electoral vote count that had happened in Congress since the beginning of the country. And critically, no Vice President, in 230 years of history, had ever claimed to have that kind of authority, hadn't claimed authority to reject electoral votes, had not claimed authority to return electoral votes back to the States. In the entire history of the United States, not once had a Joint Session, ever returned electoral votes back to the States to be counted. So the history was absolutely decisive. And again, part of my discussion with Mr. Eastman was, if you were right, don't you think Al Gore might have liked to have known in 2000, that he had authority to just declare himself President of the United States? Did you think that the Democrat lawyers just didn't think of this very obvious quirk that he could use to do that? And of course, he acknowledged Al Gore did not and should not have had that authority at that point in time. So at the conclusion of the meeting on the 4th, the President had asked that our office meet with Mr. Eastman the next day to hear more about the positions he had expressed at that meeting, and the Vice President indicated that....offered me up as his counsel, to fulfill that duty. We had an extended discussion an hour and a half to two hours on January 5. What most surprised me about that meeting was that when Mr. Eastman came in, he said, "I'm here to request that you reject the electors." So on the 4th, that had been the path that he had said, "I'm not recommending that you do that." But on the 5th, he came in and expressly requested that. Rep. Pete Aguilar (D-CA): Mr. Jacob did you, Mr. Short, and the Vice President have a call later that day, again, with the President and Dr. Eastman? Greg Jacob: So, yes, we did. Rep. Pete Aguilar (D-CA): And what did Dr. Eastman requested on that call? Greg Jacob: On that phone call, Mr. Eastman stated that he had heard us loud and clear that morning, we were not going to be rejecting electors. But would we be open to considering the other course that we had discussed on the 4th, which would be to suspend the Joint Session and request that State Legislatures reexamine certification of the electoral votes? Rep. Pete Aguilar (D-CA): Trump issued a statement claiming the Vice President had agreed that he could determine the outcome of the election, despite the fact that the Vice President had consistently rejected that position. Mr. Jacob, how did the Vice President's team reacts to the statement from the President? Greg Jacob: So we were shocked and disappointed, because whoever had written and put that statement out, it was categorically untrue. Rep. Pete Aguilar (D-CA): Mr. Jacob, did you go to the Vice President's residences on the morning of January 6? Greg Jacob: Yes. Rep. Pete Aguilar (D-CA): Did the Vice President have a call with the President that morning? Greg Jacob: He did. Rep. Pete Aguilar (D-CA): The President had several family members with him in the Oval that morning for that call. I'd like to show you what they and others told the Select Committee about that call. Eric Herschmann: When I got in, somebody called me and said that the family and others were in the Oval and do I want to come up? So I went upstairs. Ivanka Trump: It wasn't a specific, formal discussion. It was very sort of loose and casual. When I entered the office the second time he was on the telephone with who I later found out to be was the Vice President. January 6 Committee Lawyer: Could you hear the Vice President or only hear the President's end? Eric Herschmann: I could only hear the President's end. Ivanka Trump: The conversation was pretty heated. Eric Herschmann: I think till it became somewhat in a louder tone, I don't think anyone was paying attention to it initially. January 6 Committee Lawyer: Did you hear any part of the phone call, even if just this the end that the President was speaking from? Nicholas Luna: I did, yes. January 6 Committee Lawyer: All right. And what do you hear? Nicholas Luna: So as I was dropping off the note, my memory, I remember hearing the word "wimp." He called him a wimp. I don't remember if he said "You are a wimp," "You'll be a wimp." Wimp is the word I remember. January 6 Committee Lawyer: It's also been reported that the President said to the Vice President something to the effect that "you don't have the courage to make a hard decision." Gen. Keith Kellogg: Worse. I don't remember exactly, but it was something like that, yeah. Like "you're not tough enough to make the call." Ivanka Trump: It was a different tone than I'd heard him take with the Vice President before. Nicholas Luna: Something to the effect, this is, the wording's wrong...."I made the wrong decision four or five years ago." January 6 Committee Lawyer: And the word that she relayed to, that the President called the Vice President. I apologize for being impolite, but do you remember what she said her father called him? Julie Radford: The P word. Former President Donald Trump: I hope Mike is going to do the right thing. I hope so. I hope so. Because if Mike Pence does the right thing, we win the election. All Vice President Pence has to do is send it back to the states to recertify and we become President and you are the happiest people. And Mike Pence is going to have to come through for us. And if he doesn't, that will be a sad day for our country. And they want to recertify their votes. They want to recertify, but the only way that can happen is if Mike Pence agrees to send it back. So I hope Mike has the courage to do what he has to do. And I hope he doesn't listen to the RINOs (Republicans in Name Only) and the stupid people that he's listening to. Trump Supporter: It's real simple. Pence betrayed us. Which apparently everybody knew he was going to and the President mentioned it, like five times when he talked. You can go back and watch the President's video. January 6th Attendee: I'm telling you what, I'm hearing that Pence, I heard that Pence just caved? Is that true? I'm hearing reports that Pence caved. I'm telling you, if Pence caved, we're gonna drag motherfuckers through the streets. You fucking politicians are gonna get fucking drug through the streets. January 6th Streamer: Yeah, I guess the hope is that there's such a show of force here that Pence will decide to just do the right thing according Trump. January 6th Crowd: Where is Pence? Bring out Pence! [chanting] Hang Mike Pence, hang Mike Pence. Rep. Pete Aguilar (D-CA): Although the President's Chief of Staff, Mark Meadows, has refused to testify before this committee, Mr. Meadows aide Ben Williamson, and White House Deputy Press Secretary Sarah Matthews testified that Mr. Meadows went to the dining room near the Oval Office to tell the President about the violence at the Capitol before the President's 2:24pm tweet. Narrator: President Trump tweeted, "Mike Pence didn't have the courage to do what should have been done to protect our Country and our Constitution, giving states a chance to certify a corrected set of facts, not the fraudulent or inaccurate ones which they were asked to previously certify. USA demands the truth!" Rep. Pete Aguilar (D-CA): Our investigation found that immediately after the president's 2:24pm tweet, the crowds both outside the capitol and inside the Capitol surged. Rep. Pete Aguilar (D-CA): The crowds inside the Capitol were able to overwhelm the law enforcement presence and the Vice President was quickly evacuated from his ceremonial Senate office to a secure location within the Capitol Complex. January 6 Committee Lawyer: Mr. Jacob, immediately before you and the Vice President were evacuated to a secure location within the Capitol, you hit send on an email to John Eastman explaining why his legal theory about the Vice President's role was wrong. You ended your email by stating that, quote, "thanks to your bullshit, we are now under siege." And Dr. Eastman replied, and this is hard to believe, but his reply back to you was "the siege is because you and your boss," presumably referring to the Vice President, United States, "did not do what was necessary to allow this to be aired in a public way so the American people can see for themselves what happened." Mr. Jacob, later that day, you wrote again to Dr. Eastman. In that email, you wrote, and I quote, "did you advise the President that in your professional judgment the Vice President DOES NOT have the power to decide things unilaterally?" And you ended that email saying, "it does not appear that the President ever got the memo." Dr. Eastman then replied, "he's been so advised" and he ends him email with quote, "but you know him. Once he gets something in his head, it's hard to get him to change course," close quote. Greg Jacob: Late that evening, after the Joint Session had been reconvened, Mr. Eastman emailed me to point out that, in his view, the Vice President's speech to the nation violated the Electoral Count Act, that the Electoral Count Act had been violated because the debate on Arizona had not been completed in two hours. Of course, it couldn't be, since there was an intervening riot of several hours. And the speeches that the majority and minority leaders had been allowed to make also violated the Electoral Count Act because they hadn't been counted against the debate time. And then he implored me, "now that we have established that the Electoral Count Act isn't so sacrosanct as you have made it out to be, I implore you one last time, can the Vice President, please do what we've been asking him to do these last two days, suspend the Joint Session, send it back to the States." Eric Herschmann: The day after, Eastman asked me about something dealing with Georgia and preserving something, potentially for appeal. And I said to him, "Are you out of your effing mind?" Right? I said, "I only want to hear two words coming out of your mouth from now on: 'orderly transition.' I don't want to hear any other effing words coming out of your mouth, no matter what, other than orderly transition. Repeat those words to me." January 6 Committee Lawyer: And what did he said? Eric Herschmann: Eventually, he said "orderly transition." I said, "Good, John. Now I'm going to give you the best free legal advice you're ever getting in your life. Get a great effing criminal defense lawyer. You're going to need it." And then I hung up on him. Rep. Pete Aguilar (D-CA): In fact, just a few days later, Dr. Eastman emailed Rudy Giuliani and requested that he be included on a list of potential recipients of a Presidential pardon. Dr. Eastman did not receive his presidential pardon. June 13, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: William Stepien, Former Trump Campaign Manager Chris Stirewalt, Former Fox News Political Editor Benjamin Ginsberg, Election Attorney BJay Pak, Former United States Attorney for the Northern District of Georgia Al Schmidt, Former City Commissioner of Philadelphia Matt Morgan, Former General Counsel, Trump Campaign Clips 10:15 Rep. Liz Cheney (R-WY): On January 2, the General Counsel of the Trump campaign, Matthew Morgan, this is the campaign's chief lawyer, summarized what the campaign had concluded weeks earlier, that none of the arguments about fraud or anything else could actually change the outcome of the election. Matt Morgan: Generally discussed on that topic was whether the fraud, maladministration, abuse or irregularities, if aggregated and read most favorably to the campaign, would that be outcome determinative and I think everyone assessment in the room, at least amongst the staff, Mark Short, myself and Greg Jacob, was that it was not sufficient to be outcome determinative. 14:50 Former President Donald Trump: You know, the things with bundling and all of the things that are happening with votes by mail, where 1000s of votes are gathered, and I'm not gonna say which party does it but 1000s of votes are gathered and they come in and they're dumped in a location and then all of a sudden you lose elections that you think you're going to win. Former President Donald Trump: The only way we're going to lose this election is if the election is rigged. Remember that. The only way we're going to lose this election. Former President Donald Trump: This is going to be a fraud like you've never seen. Did you see what's going on? Take a look at West Virginia mailman selling the ballots. They're being sold. They're being dumped in rivers. This is a horrible thing for our country. This is not as no this is not going to end well. 29:40 Chris Stirewalt: In the 40 or 50 years, let's say, that Americans have increasingly chosen to vote by mail or early or absentee, Democrats prefer that method of voting more than Republicans do. So basically, in every election, Republicans win election day, and Democrats win the early vote. And then you wait and start counting. And it depends on which ones you count first, but usually, it's election day votes that get counted first, and you see the Republican shoot ahead. And then the process of bailing and binding and unbinding all those mail in votes, in some states, like Pennsylvania, refuse to count the votes first. So you have to wait for all of that to come in. So in every election, and certainly a national election, you expect to see the Republican with a lead, but it's not really a lead. When you put together a jigsaw puzzle, it doesn't matter which piece you put in first, it ends up with the same image. So for us, who cares? But that's because no candidate had ever tried to avail themselves of this quirk. In the election counting system, we had gone to pains, and I'm proud of the pains we went to, to make sure that we were informing viewers that this was going to happen because of the Trump campaign. And the President had made it clear that they were going to try to exploit this anomaly. And we knew it was going to be bigger, because the percentage of early votes was higher, right? We went from about 45% of the votes being early and absentee to, because of the pandemic, that increased by about 50%. So we knew it would be longer. We knew it would be more. So we wanted to keep telling viewers, "Hey, look, the number that you see here is sort of irrelevant because it's only a small percentage of these votes." 1:06:05 Former Attorney General Bill Barr: And I was somewhat demoralized because I thought, boy, if he really believes this stuff he has, you know, lost contact with -- he's become detached from reality if he really believes this stuff. On the other hand, you know, when I went into this and would, you know, tell them how crazy some of these allegations were, there was never, there was never an indication of interest in what the actual facts are. 1:10:25 Jeff Rosen: There were instances where the President would say, people are telling me this, or I've heard this, or I saw on television, you know, this, this impropriety in Atlanta or Pennsylvania or something, and we were in a position to say, people have already looked at that and we know that you're getting bad information that that's, that's not correct. It's been demonstrated to be incorrect from our point of view. 1:14:55 Richard Donoghue: I tried to, again put this in perspective and to try to put it in very clear terms to the President. And I said something to the effect of "Sir we've done dozens of investigations hundreds of interviews. The major allegations are not supported by the evidence developed. We've looked at Georgia, Pennsylvania, Michigan, Nevada. We're doing our job. Much of the info you're getting is false." June 9, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: U.S. Capitol Police Officer Caroline Edwards Nick Quested, Filmmaker and Documentarian Clips Bill Bar: I had three discussions with the President that I can recall. One was on November 2, one was on December 1, and one was on December 14. And I've been through sort of the give and take of those discussions. And in that context, I made it clear I did not agree with the idea of saying the election was stolen and putting out this stuff, which I told the President was bullshit. Robert Schornack: What really made me want to come was the fact that, you know, I had supported Trump all that time. I did believe, you know that the election was being stolen. And Trump asked us to come. Eric Barber: He personally asked for us to come to DC that day. And I thought, for everything he's done for us, if that's the only thing he's gonna ask me, I'll do it. Former President Donald Trump: We're gonna walk down to the Capitol. Interviewer: Do you recall President Trump mentioning going to the Capitol during his speech? Eric Barber: Oh, yeah. So that's one of my disappointments. He said he was gonna go go with us that he was gonna be there. John Wright: I know why I was there. And that's because he called me there. And he laid out what is happening in our government. He laid it out. George Meza: I remember Donald Trump telling people to be there. Right. I mean, to support. Interviewer: You mentioned that the President asked you. Do you remember a specific message? Daniel Herendeen: Basically, he asked for us to come to DC and big things are gonna happen. Matthew Walter: What got me interested is he said I have something very important to say on January 6, or something like that. That's what got me interested to be there. Robert Schornack: You know, Trump has only asked me for two things. He asked me for my vote and he asked me to come on January 6. May 12, 2021 House Committee on Oversight and Reform Witnesses: Chris Miller, Former Acting Secretary of Defense Robert Contee, Chief of the Metropolitan Police Department Clips 40:52 Rep. Carolyn Maloney (D-NY): Mr. Miller, you were the Acting Secretary of Defense on January 6th, did President Trump as the commander in chief of the US Armed Forces call you during the January 6 attack to ensure the capital was being secured? Mr. Miller? Chris Miller: No, I had all the authority I needed from the president to fulfill my constitutional duties. 3:12:18 Rep. Hank Johnson (D-GA): Were you ordered to delay deployment of troops? Chris Miller: 110% Absolutely not. No, that is not the case. February 23, 2021 Senate Committee on Homeland Security and Governmental Affairs and Committee on Rules and Administration Witnesses: Robert Contee, Acting Chief of Police for the Metropolitan Police Department Steven Sund, Former Chief of the United States Capitol Police Clips 39:21 Robert Contee: MPD is prohibited by federal law from entering the Capitol or its grounds to patrol, make arrests or served warrants without the consent request of the Capitol Police board. 39:32 Robert Contee: The President of the United States, not the Mayor of the District of Columbia, controls the DC National Guard. 1:05:36 Sen. Amy Klobuchar (D-MN): Mr. Sund, you stated in your written testimony that you first made a request for the Capitol Police board to declare an emergency and authorized National Guard support on Monday January 4th, and that request was not granted. Steven Sund: That is correct, ma?am. 1:05:47 Sen. Klobuchar (D-MN): Your testimony makes clear that the current structure of the Capitol Police corps resulted in delays in bringing in assistance from the National Guard. Would you agree with that? That?s one of the things we want to look at. Steven Sund: Yes, ma?am. 1:07:23 Sen. Klobuchar (D-MN): Mr. Sund your written testimony states that you had no authority to request the assistance of the National Guard without an emergency declaration of the Capitol Police board. On what rule, regulation or authority did you base that view? Steven Sund: I?d have to go back and look at the specific rule, but it?s a standard. It?s a standing rule that we have. I cannot request the National Guard without a declaration of emergency from the Capitol Police board. It?s kind of interesting because it?s very similar to the fact you know, I can?t even give my men and women cold water on an excessively hot day without a declaration of emergency. It?s just a process that?s in place. 2:39:22 Sen. Jeff Merkley (D-OR): Have you ever held a drill to respond this situation where a crowd pushes past the exterior barricades? Steven Sund: Not this level of situation no, sir. Executive Producer Recommended Sources Jul 19, 2022. U.S. Senator Bernie Sanders. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2023-01-06
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CD265: Policing FTX

FTX, at one point the world?s third largest cryptocurrency exchange, went bankrupt, causing the entire cryptocurrency industry to crash. In this episode, hear highlights from Congressional testimony that will explain how FTX was able to grow so large while committing blatant fraud, how it?s possible that the government didn?t know and didn?t do anything to stop it, and hear about a Senate bill that?s branded as a solution but has concerning flaws of it?s own. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes What is FTX? Timothy Smith. Dec 22, 2022. Investopedia. Crypto Regulation Kyle Barr. Dec 1, 2022. Gizmodo. David Dayen. Nov 23, 2022. The American Prospect. David Dayen. Nov 17, 2022. The American Prospect. David Dayen. Nov 10, 2022. The American Prospect. Tom Emmer et al. Mar 16, 2022. emmer.house.gov. Lead-up to FTX Collapse Elizabeth Napolitano. Nov 9, 2022. NBC News. Tom Wilson and Angus Berwick. Nov 8, 2022. Reuters. Tracy Wang and Oliver Knight. Nov 6, 2022. Tracy Wang and Oliver Knight. Nov 6, 2022. CoinDesk. Ian Allison. Nov 2, 2022. CoinDesk. Seth. P Rosebrock, Assistant General Counsel, Enforcement, FDIC. Aug 18, 2022. FDIC. Tom Emmer André Beganski. Dec 11, 2022. Decrypt. Tony Romm. Dec 8, 2022. The Washington Post. Emily Brooks and Mychael Schnell. Nov 15, 2022. The Hill. FTX Collapse Shane Shifflett, Rob Barry, and Coulter Jones. Dec 5, 2022. The Wall Street Journal. Alexander Osipovich. Dec 3, 2022. The Wall Street Journal. David Gura. Nov 23, 2022. NPR. Steven Zeitchik. Nov 20, 2022. The Washington Post. Nov 17, 2022. PACER. Angus Berwick. Nov 11, 2022. Reuters. Jacob Bogage and Tory Newmyer. Nov 11, 2022. The Washington Post. Vicky Ge Huang, Alexander Osipovich, and Patricia Kowsmann. Nov 11, 2022. The Wall Street Journal. Lobbying and Campaign Donations Tory Newmyer and Steven Zeitchik. Dec 1, 2022. The Washington Post. Tory Newmyer and Peter Whoriskey. Nov 28, 2022. The Washington Post. Tony Romm. Nov 17, 2022. The Washington Post. Paul Kiernan. Nov 14, 2022. The Wall Street Journal. Brian Schwartz. Nov 14, 2022. CNBC. Tory Newmyer. Nov 12, 2022. The Washington Post. Luis Melgar et al. Oct 24, 2022. The Washington Post. Freddy Brewster. Aug 12, 2022. Los Angeles Times. Aftermath of the FTX Collapse Dec 12, 2022. Reuters. Emily Flitter, David Yaffe-Bellany and Matthew Goldstein. Dec 7, 2022. The New York Times. Alexander Osipovich, Alexander Saeedy and Alexander Gladstone. Dec 4, 2022. Mar 10, 2022. Cryptopedia. December 13 Hearing Dec 8, 2022. House Financial Services Committee. House Financial Services Committee. Sam Bankman-Fried Indictment Dec 13, 2022. The New York Times. Bills Audio Sources December 13, 2022 House Committee on Financial Services Witness: John J. Ray III, CEO, FTX Group Clip Transcripts Rep. Emanuel Cleaver (D-MO): Have you read the full testimony that was planned by our missing guest [Sam Bankman-Fried]? John Ray I have not read his full testimony. Some pieces of it been relayed to me, but I've not read it. I've not read one word of it actually. Rep. Emanuel Cleaver (D-MO): Yeah, I don't know him personally and probably don't want to. But this testimony is so disrespectful. I mean, there's not a person up here would like to show this to their children. In line two of this message, he says, and I quote, "I would like to start out by firmly stating under oath...* And yeah, I can't even say it publicly. The next two words, absolutely insulting. This is the Congress of the United States. Rep. Warren Davidson (R-OH): So when when customers deposited funds into their FTX accounts, where did the cash go? John Ray: Well, sometimes the money wasn't deposited in the FTX account it was sent to Alameda to begin with. Rep. Warren Davidson (R-OH): It was misdirected from from the start straight to Alameda. John Ray: There was certainly some time period where there's no bank account at .com and then ultimately, if you look at the structure of this, Alameda is essentially a customer on that .com exchange, and effectively, you know, borrowed money from or just transferred money from FTX customers to take its own positions on the Alameda hedge fund. Rep. Patrick McHenry (R-NC): So Alameda research and the venture capital business, what did Alameda research do? John Ray: Essentially made crypto investments, engaged in margin trading, took long and short positions in crypto, essentially invested in crypto. But of course, we now know also invested in over $5 billion of other assets which are in a variety of sectors. Patrick McHenry (R-NC): Can you describe the differences between the FTX.com and FTX.us silos? John Ray: Yes. Very simply FTX.us was for US citizens who wanted to trade crypto; FTX.com, US citizens were not allowed to trade on that exchange. That's very simple. And I would make one other comment, which is separate apart from any of those two silos. It was ledger x, which is a regulated entity regulated by the CFTC, solvent and separate from the FTX.us silo. Patrick McHenry (R-NC): Okay, and that is a distinct silo, that's a distinct company? John Ray: That is a distinct company within the US silo, yes. Patrick McHenry (R-NC): Okay. Patrick McHenry (R-NC):: What was the relationship between FTX.com and FTX.us? Was is there a distinction between the two? John Ray: There was a public distinction between the two. What we're seeing now is that the crypto assets for both ftx.com and for FTX.us were housed in the same database. It's called the AWS system, which is just an acronym for Amazon Web Services. It was all housed in the same web format. Patrick McHenry (R-NC):: And is that distinct from Alameda's assets? John Ray: Yes, it is. John Ray: In essence you know, Alameda was a user, effectively a customer, of FTX.com. That's how it was essentially structured. John Ray: There was no audit at Alameda, no audit at the venture silo. There was audit at the US silo and also audit at the the .com silo. I can't speak to the integrity or quality of those audits. We're reviewing, obviously, the books and records. And as I've said earlier, you know, much of those books and records were maintained on a fairly unsophisticated ledger ledger which works workbooks. John Ray: It's an extensive list, it really crosses the entire spectrum of the company, from lack of lists of bank accounts, hundreds of bank accounts dispersed all over the world, lack of a complete list of employees and their functions by group or name, extensive use of independent contractors as opposed to employees, lack of insurance that you'd normally would see in certain businesses, either inadequate insurance or complete gaps in insurance. For example, the Alameda silo had no insurance whatsoever. So those are I mean, there's, the list goes on and on. You know, we could spend all day on them. John Ray: While many things are unknown at this stage, we're at a very preliminary stage, many questions remain, we know the following. First customer assets at ftx.com were commingled with assets from the Alameda trading platform. That much is clear. Second, Alameda used client funds to engage in margin trading, which exposed customer funds to massive losses. Third, the FTX group went on a spending binge in 2021 and 2022, during which $5 billion was spent on a myriad of businesses and investments, many of which may only be worth a fraction of what was paid for them. Fourth, loans and other payments were made to insiders in excess of $1.5 billion. Fifth, Alameda's business model as a market maker required funds to be deployed to various third party exchanges, which were inherently unsafe and further exacerbated by the limited protections offered in certain of those foreign jurisdictions. John Ray: I accepted the position of Chief Executive Officer of FTX in the early morning hours of November 11 [2022]. It immediately became clear to me that chapter 11 was the best course available to preserve any remaining value of FTX. Therefore, my first act as CEO was authorized the chapter 11 filings. John Ray: It's virtually unlimited in terms of the lack of controls: no centralized records on banking, no daily reconciliations of crypto assets, silos where there's no insurance, inadequate insurance, no independent board, no safeguards that limit, who controls and asset. So senior management literally could get access to any of the accounts in any of the silos. No separateness between customer money and other customer money or other other assets. It's virtually unlimited in terms of the lack of controls. And that's really the point of the unprecedent comment. I've just never seen anything like it in 40 years of doing restructuring work and corporate corporate legal work. It's just a dearth of of information. John Ray: But again, users had multiple accounts. For example, if they had a different trading position, they may have opened multiple accounts. We know it's a big number. It's in the millions on the customer accounts, and we know it's several billion dollars in losses. Assigning those losses to customer accounts will be our next challenge. John Ray: The FTX group's collapse appears to stem from absolute concentration of control in the hands of a small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company entrusted with other people's money or assets. Some of the unacceptable management practices identified so far include the use of computer infrastructure that gave individuals and senior management access to systems that stored customers' assets without security controls to prevent them from redirecting those assets; the storing of certain private keys to access hundreds of millions of dollars in crypto assets without effective security controls or encryption; the ability of Alameda to borrow funds held at FTX.com to be utilized for its own trading or investments without any effective limits whatsoever; the commingling of assets; the lack of complete documentation for transactions involving nearly 500 separate investments made with FTX group funds and assets. In the absence of audited or reliable financial statements, the lack of personnel and financial and risk management functions, and the absence of independent governance throughout the FTX group, a fundamental challenge we face is there in many respects we are starting from near zero in terms of the corporate infrastructure and record keeping that one would expect in a multibillion dollar corporation. John Ray: The FTX group is unusual in the sense that, you know, I've done probably a dozen large scale bankruptcies over my career, including Enron, of course. Every one of those entities had some financial problem or another, they have some characteristics that are in common. This one is unusual. And it's unusual in the sense that literally, you know, there's no record keeping whatsoever. It's the absence of record keeping. Employees would communicate, you know, invoicing and expenses on on Slack, which is essentially a way of communicating for chat rooms. They use QuickBooks, a multibillion dollar company using QuickBooks. Rep. Ann Wagner (R-MO): QuickBooks? John Ray: QuickBooks. Nothing against QuickBooks, it's very nice tool, just not for a multibillion dollar company. There's no independent board, right? We had one person really controlling this. No independent board. That's highly unusual in the size company this is. And it's made all the more complex because we're not dealing with, you know, widgets or, you know, something that's tangible. We're dealing with with with crypto, and the technological issues are made worse when you're dealing with an asset such as crypto. John Ray: I've just never seen an utter lack of record keeping. Absolutely no internal controls whatsoever. John Ray: The operation of Alameda really depended based on the way it was operated for the use of customer funds. That's the major breakdown here of funds from ftx.com, which was the exchange for non US citizens, those funds were used at Alameda to make investments and other disbursements. John Ray: There's no distinction whatsoever. The owners of the company could really run free reign across all four silos. John Ray: The loans that were given to Mr. Bankman-Fried, not just one loan it was numerous loans, some of which were documented by individual promissory notes. There's no description of what the purpose of the loan was. In one instance, he signed both as the issuer of the loan, as well as the recipient of the loan. But we have no information at this time as to what the purpose or the use of those funds were. And that is part of our investigation. John Ray: At the end of the day, we're not going to be able to recover all the losses here. Money was spent that we'll never get back. There will be losses on the international side. We're hopeful on the US side. He'll answer to others related to what happened here. Our job is just to find the assets and try to get customers their money back as quickly as possible. John Ray: Essentially, they had two exchanges that allowed users to trade crypto, and then there was the hedge fund. It's as simple as that. The users were allowed to make a variety of investments. They had a more expansive ability to trade crypto if you are a non-U.S. citizen on the .com exchange, but I know what's been described publicly is very complex. It is to some extent, but essentially, you had two exchanges, and you had a hedge fund. Inside both the US silos I've mentioned and inside the silos for .com there were regulated entities. We have regulated entities that are, for example, in Japan that are solvent, we had a regulated entity, ledger X, that was solvent. Those are sort of distinct from the other basic operations that we had, which are the two exchanges. John Ray: The principal issue that the company is facing in the crypto area, and from a technology perspective, it is different from the other bankruptcies because it's not a plane, not a boat. It's this crypto asset and it has inherently some difficulties. You know, the assets can be taken or lost. We have assets there in what are called Hot wallets, and those are in cold wallets. Hot wallets are very vulnerable to to hacking. If you've done any looking on the internet, you'll find that hacking is almost ordinary course in this business sector. They're very, lots of vulnerability to the wallets. So that's this company, unfortunately had a very, very challenging record here. You know, for some transfers there was no pathway for it. Our keys aren't stored in a centralized location. We don't know where all of our wallets are. Passwords were sometimes kept in just plain text format. So this company was sort of uniquely positioned to fail. John Ray: So funds were taken from customers, funds were invested, trading losses incurred in Alameda and then funds were deployed, that will never be valued at the same dollar amount. There was over $5 billion of investments made. Certainly, there's some value there and we'll try to get that value and sell those assets. But oftentimes, even when he made those sorts of investments, whether it was directly or through others in management, sometimes he would do that really without any pro forma or any valuation. Not really quite sure how some of the purchase price numbers were derived. So it gives you a sort of worry obviously, that the purchases were overvalued so there's a concern there as well. John Ray: Alameda was a customer, if you will, of the exchange and it's through that customer relationship, plus other arrangements, that allowed Alameda to borrow those funds, and then pick positions on the exchange like anyone, you know, who would hedge an asset in the market. He had unusually large positions, of course, and sometimes they were wrong in those positions, and they resulted in big losses. But ultimately, the commingling issue is the same in a different issue. He took the money from FTX to cover those positions and ultimately, when customers went to get their money back from .com there was a run on the bank. John Ray: The Alameda fund, well that's just the fund that drew resources from the exchanges, so it's really separate, it was not for customers per se, it was just simply a hedge fund. John Ray: For structural purposes and just for ease of presentation, we tried to take the over 100 entities and we put those in four silos. To demystify that, it's very simple. There was a U.S. silo, which was the FTX.us exchange for US investors. There was an international exchange called FTX.com. Again, for non-U.S. persons that invested in crypto. There was Alameda, which is purely a crypto hedge fund, which made other investments, venture capital type investments. Then there's a fourth entity which was purely investments. And although our investigation is not complete, those investments were most likely made with either Alameda money or money that originally came from ftx.com. But that fourth silo is just purely investments Rep. Patrick McHenry (R-NC): And who owned those four silos? John Ray: All those entities are owned or controlled by Sam Bankman-Fried. Rep. Brad Sherman (D-CA): Now I've heard from some on the other side criticizing the SEC and in July in this room I criticized the Head of Enforcement at the SEC for not going after crypto exchanges. But the fact is that without objection I'd like to put on the record a letter signed by 19 Republican members designed to push back on the SEC, a brushback pitch if you're familiar with baseball, attacking the SEC for paying attention to and I quote, "the purported risks of digital assets." And I'd like to put on the record without objection comments from eight members made in this room that were designed to attack the SEC as being Luddite and anti-innovation for their efforts. Rep. Nydia Velázquez (D-NY): Mr. Ray, a number of their debtors in the FTX group are located in offshore jurisdictions. Will this complicate the efforts to retrieve the assets of those there? If so why? John Ray: No, I don't think it will complicate it at all. The various jurisdictions, historically in bankruptcy, and I've been in a number of cross border situations, the jurisdictions will cooperate with each other. The regulators in all these jurisdictions, I think, realize that everyone's there for a common purpose, to protect the victims and recover assets for the victims of these situations. Rep. Nydia Velázquez (D-NY): How much have you been able to secure and where are most of these assets located? John Ray: We've been able to secure over a billion dollars of assets. We've secured those two cold wallets in a secure location. It's an ongoing process, though, which will take weeks and perhaps months to secure all the assets. Rep. Nydia Velázquez (D-NY): Are most creditors located in the US or foreign jurisdictions. John Ray: The majority of the creditors trade through the .com silo and are outside of this jurisdiction, although there are some foreign customers that are on the US silo, and vice versa. Rep. Ann Wagner (R-MO): Reports suggest that ftx.com transferred more than half of its customer funds, roughly $10 billion, to Alameda research. Is that accurate, sir? John Ray: Our work is not done, we don't have exact numbers for you today, but I will say it's several billion dollars, in that range, so we know that the size of the harm was significant. Rep. Maxine Waters (D-CA): Have you seen evidence of such a cover up? Have you seen evidence that there was any independent governance of Alameda separate and apart from that of the exchange? John Ray: The operations of the FTX group were not segregated. It was really operated as one company. As a result, there's no distinction virtually, between the operations of the company and who controlled those operations. Rep. Maxine Waters (D-CA): Did FTX have sufficient risk management systems and controls to appropriately monitor any leverage the business took on and the interconnections it had with businesses, like again, Alameda. John Ray: There were virtually no internal controls and no separateness whatsoever. December 1, 2022 Senate Committee on Agriculture, Nutrition, and Forestry Witness: Rostin Behnam, Chairman, Commodity Futures Trading Commission Clip Transcripts 18:30 Debbie Stabenow (D-MI): I've said this before and I'll say it again: the Digital Commodities Consumer Protection Act does not -- does not -- take authority away from other financial regulators. Nor does it make the CFTC the primary crypto regulator, because crypto assets can be used in many different ways. No single financial regulator has the expertise or the authority to regulate the entire industry. 24:30 John Boozman (R-AK): Many have asked why is the Ag Committee involved in this? The Ag Committee is involved because this committee and no other committee in the Senate is responsible for the oversight of the nation's commodity markets. Bitcoin, although a crypto currency, is a commodity. It's a commodity in the eyes of the federal courts and the opinion of the SEC Chairman, there is no dispute about this. If there are exchanges where commodities are traded, be it wheat, oil, or Bitcoin, then they must be regulated. It's simply that simple. 32:45 Rostin Behnam: I have asked Congress directly for clear authority to impose our traditional regulatory regime over the digital asset commodity market. 33:00 Rostin Behnam: I have not been shy about my encouragement of bills that contemplate shared responsibility for the CFTC and the Securities Exchange Commission, where the SEC would utilize its existing authority and reporting regime requirements for all security tokens, while the CFTC would apply its market based rules for the more limited subset of commodity tokens, which do not have the same characteristics of security tokens. 41:00 Rostin Behnam: I can though share with this committee with respect to me, my team and I have taken an initial review of my calendar and what we've observed is that my team and I met with Mr. Bankman-Fried and his team. Over the past 14 months, we met 10 times in the CFTC office at their request, all in relation to this DCO this Clearinghouse application. Nine out of the 10 times we were in Washington, one was at a widely held conference in Florida earlier this year. In addition, there were two phone calls, I believe, and a number of messages, all in relation to the DCO application, providing us updates suggesting that they were answering questions from different divisions, and trying as I said, to doggedly move the application along and to get it approved. 48:00 Sen. John Boozman (R-AK): If ftx.com had been a registered U.S. exchange, would the CFTC have been able to mitigate what happened. Rostin Behnam: Senator, you know, with our current authority, the answer is now. We need the authority to get into a CFTC registered exchange, as you point out. If we had that authority, and they were registered, given what we know from the facts about conflicts of interest, commingling funds, books and records, we would have been able to prohibit it. And I would point to what we're doing with Ledger X. On a daily basis our staff is in direct communication not only with Ledger X, but the custodians themselves, able to identify customer property, and customer money. Imagine that scenario with FTX.us if we had a daily lens into the location of customer money and customer property, you can imagine, given what we've learned about what's happened with FTX, we could have certainly prohibited many of the actions that we're hearing about. 1:16:00 Rostin Behnam: In terms of regulation of cash markets, right, the spot market, we simply do not have authority to register cash market exchanges or any intermediary broker dealer entity within that structure and that's what concerns me, this is the gap. 1:59:30 Rostin Behnam: Unfortunately, when we act, it's often after the fact because the information that allows us to bring an enforcement action in digital asset cash commodity markets, is only because information is coming to us from outsiders, from referrals, from tips, from whistleblowers, and this is in stark contrast to some of the surveillance tools and examination tools that we would have if we had a comprehensive regulatory framework over digital asset commodities. 2:07:00 Sen. Dick Durbin (D-IL): There'll be a reporter waiting in the hall -- I've already talked to her this morning -- who will ask you, "Did he ever contribute to your campaign?" I said "Oh, no, I never heard of the man." She said "You're wrong, Senator, he contributed to you." So the cryptocurrency people are active politically. And they are trying to achieve a political end here. It is their right as citizens of this country to do that. But it really calls on us to make sure that whatever we do is credible under those circumstances. 2:22:30 Rostin Behnam: I can't speak to what Mr. Bankman-Fried or anyone at FTX was thinking when they were advocating for regulation, but the remarkable thing is to think about it in the context of compliance and what we've learned about the FTX entities and just thinking about the bill that Senator Stabenow and Boozman introduced, they would have been so far out of compliance that it just wouldn't have even been possible. September 15, 2022 Senate Committee on Agriculture, Nutrition, and Forestry Witnesses: Rostin Behnam, Chairman, Commodity Futures Trading Commission Todd Phillips, Director, Financial Regulation and Corporate Governance, Center for American Progress Shelia Warren, Chief Executive Officer, Crypto Council for Innovation Christine Parker, Vice President, Deputy General Counsel, Coinbase Heath Tarbert, Chief Legal Officer, Citadel Securities Denelle Dixon, Chief Executive Officer, Stellar Development Foundation December 8, 2021 House Committee on Financial Services Witnesses: Jeremy Allaire, Co-Founder, Chairman and CEO, Circle Samuel Bankman-Fried, Founder and CEO, FTX Brian P. Brooks, CEO, Bitfury Group Charles Cascarilla, CEO and co-Founder, Paxos Trust Company Denelle Dixon, CEO and Executive Director, Stellar Development Foundation Alesia Jeanne Haas, CEO, Coinbase Inc. and CFO, Coinbase Global Inc. Clip Transcripts 23:30 Sam Bankman-Fried: We are already regulated and licensed. We have many licenses globally. Here in the United States, we are regulated by the states under the money service business and money transmitting regime, and we are regulated nationally by the CFTC where we have a DCO, a DCM, a swap execution facility, and other licensure. 1:13:30 Sam Bankman-Fried: One of the really innovative properties of cryptocurrency markets are 24/7 risk monitoring and engines. We do not have overnight risk or weekend risk or holiday risk in the same way traditional assets do, which allow risk monitoring and de risking of positions in real time to help mitigate volatility. We've been operating for a number of years with billions of dollars of open interest. We've never had customer losses, clawbacks or anything like that. Even going through periods of large movements in both directions. We store collateral from our users in a way which is not always done in the traditional financial ecosystem to backstop positions. And the last thing that I'll say is if you look at what precipitated some of the 2008 financial crisis, you saw a number of bilateral bespoke non-reported transactions happening between financial counterparties which then got repackaged and releveraged again and again and again, such that no one knew how much risk was in that system until it all fell apart. If you compare that to what happens on FTX or other major cryptocurrency venues today, there is complete transparency about the full open interest. There is complete transparency about the positions that are held. There is a robust, consistent risk framework. 1:34:00 Sam Bankman-Fried: In addition to a bunch of international licenses in the United States, we are participating in that system you referenced with the money transmitter and money service businesses license is in addition to that, however, we are also licensed by the CFTC. We have a DCO, a DCM, and other licensure from them through FTX.us derivatives and we look forward to continuing to work with them to build out our product suite. We just submitted a 800 page, I believe, proposal to them a few days ago, which we're excited to discuss and we're also happy to talk with other regulators about potential products in the United States. 2:37:00 Rep. Tom Emmer (R-MN): Now it's my understanding that FTX uses surveillance trade technology akin to the technology national Securities Exchanges use to protect investors and ensure sound spot markets. What does this technology and any other tools FTX uses to protect the spot market from fraud and manipulation look like? Sam Bankman-Fried: Yeah. So, you know, like other exchanges, we do have these technologies in addition to the, you know, new customer policies that we can identify individuals associated with trades. We have surveillance for unusual trading activity. We have manual inspections of anything that you know, gets flagged either by the automated surveillance or by manual inspection. And we do this with the trading activity with deposits and withdrawals and everything else. Rep. Tom Emmer (R-MN): Sounds like you're doing a lot to make sure there is no fraud or other manipulation. Thank you Mr. Bankman-Fried, again, for helping us understand the extensive guardrails a cryptocurrency exchange like FTX has in place to ensure sound crypto spot markets for investors. 2:52:30 Rep. Cindy Axne (D-Iowa): Mr. Bankman-Fried, I'd like to start by asking you the first question. FTX.us has a derivatives platform and recently bought ledger x as part of that. Is that correct? Sam Bankman-Fried: Yes. Rep. Cindy Axne (D-Iowa): Okay, thank you. And that platform is registered with the CFTC. Is that correct? Sam Bankman-Fried: Yep. Rep. Cindy Axne (D-Iowa): Okay, perfect. So I just want to clarify something. And this isn't to say anybody's doing any wrong. It's just to get the lay of the land. You also have an exchange for Bitcoin and other tokens, but that is not registered with either the CFTC or the SEC. Is that correct? Sam Bankman-Fried: That's correct. Currently, neither of them are primary markets regulated for spot Bitcoin to USD markets. Rep. Cindy Axne (D-Iowa): Okay, thank you. And I know you're registered as a money transmitter, but that's not the same kind of oversight that we'll see from a federal market regulator. I also sit on the Agriculture Committee, which oversees the CFTC, so a gap like this is especially concerning to me. And the big problem that I see here, from what I understand, is that the CFTC doesn't have regulatory authority for spot trading of commodities, just their derivatives. So that leaves consumers with inconsistent protections, which is a concern that I have. 2:55:00 Rep. Cindy Axne (D-Iowa): Bitcoin, which has almost a trillion dollars invested in it, has CFTC oversight for people who are trading futures and options, but not for people who are trading the currency itself. Is that right? Sam Bankman-Fried: That is essentially correct. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-12-23
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CD264: Cryptocurrencies and Blockchain

FTX, a large cryptocurrency exchange, recently went bankrupt, leading to calls for government regulation of cryptocurrencies. But you might be wondering, what are cryptocurrencies? In part one of this two-part series, listen to expert testimony provided over a four-year period informing Congress about the cryptocurrency industry, the promise of blockchain, problems - both real and overblown - with this new technology, and how best to regulate this complicated industry. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Proof of Work Jake Frankenfield. May 2, 2022. Investopedia. Initial Coin Offering (ICO) Jake Frankenfield. Aug 18, 2022. Investopedia. Sherwin Dowlat. Jul 11, 2018. Satis Group. Madison Cawthorn The Associated Press. Dec 7, 2022. NPR. Regulations Cheyenne Ligon. Dec 5, 2022. CoinDesk. Bills Sponsor: Sen. Debbie Stabenow Audio Sources January 20, 2022 House Committee on Energy & Commerce, Subcommittee on Oversight and Investigations Witnesses: , Weill Family Foundation and Joan and Sanford I. Weill Professor, Jacobs Technion-Cornell Institute, Cornell Tech , Chief Executive Officer, Soluna Computing, Inc. , Chief Executive Officer, BitFury , Former Chief Executive Officer, Chelan County Public Utility District and Bonneville Power Administration , Shareholder Jordan Ramis P.C. June 16, 2021 House Committee on Financial Services, Subcommittee on National Security, International Development and Monetary Policy Witnesses: , Global Head of Policy & Regulatory Affairs, Chainalysis , Senior Director, Center on Economic and Financial Power, Foundation for Defense of Democracies February 25, 2021 House Financial Services Committee, Subcommittee on National Security, International Development and Monetary Policy Witness , Former Assistant Secretary for Terrorist Financing and Financial Crimes, U.S. Department of the Treasury July 30, 2019 Senate Committee on Banking, Housing, and Urban Affairs Committee concluded a hearing to examine regulatory frameworks for digital currencies and blockchain, including S. 2243, to amend the Expedited Funds Availability Act to require that funds deposited be available for withdrawal in real-time. Witnesses: , Co-Founder, Chairman and Chief Executive Officer, Circle, on behalf of The Blockchain Association , Specialist in International Trade and Finance, Congressional Research Service , Professor of Law, University of California, Irvine School of Law October 11, 2018 Senate Committee on Banking, Housing, and Urban Affairs Committee concluded a hearing to examine the cryptocurrency and blockchain ecosystem, including S. 3179, to require the Comptroller General of the United States to carry out a study on how virtual currencies and online marketplaces are used to buy, sell, or facilitate the financing of goods or services associated with sex trafficking or drug trafficking. Witnesses: , Professor of Economics and International Business, New York University Stern School of Business , Director of Research, Coin Center Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-12-11
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CD263: Republicans Take the House

The results are in: The Democrats will keep the Senate, the Republican will take the House. In this episode, in preparation for the 118th Congress, Jen analyzes the detailed policy documents released by the House Republicans to see what they could reasonably accomplish, who their policies would help or hurt, and how they will likely wield their power in a politically divided Congress. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Southern Border David J. Bier. Sep 14, 2022. Cato Institute. May 2022. The Healthy Future Task Force. Jul 2022. American Security Task Force. American Federation of Teachers. Sean Altekruse et al. January 17, 2020. PLOS One 15(1). Tiffany Stecker. Feb 20, 2019. Bloomberg Law. Censorship Sep 2022. China Sep 2022. China Task Force. Commitment to America Megan Loe. Oct 25, 2022. Verify. House Republicans. House Republicans. Sep 20, 2022. House Republicans. Sep 2022. Jobs and the Economy Task Force. Energy and the Environment August 9, 2022. The Energy, Climate, & Conservation Task Force. Mining Sep 2022. The Energy, Climate, & Conservation Task Force. John Emeigh. Jun 2, 2022. KXLF Butte. Betsy Smidinger. August 30, 2021. U.S. Environmental Protection Agency. U.S. Environmental Protection Agency. Ryan DeMars. 2012. Teach the Earth. Clark Fork Watershed Education Program. Dams Mar 2, 2021. MIT Climate Portal. Fossil Fuels Jun 17, 2022. The Energy, Climate, & Conservation Task Force. Jun 10, 2022. The Energy, Climate, & Conservation Task Force. Jeff Brady and Neela Banerjee. Jun 9, 2021. Gutting Environmental Law Jun 10, 2022. The Energy, Climate, & Conservation Task Force. Pesticides Jul 15, 2022. The Energy, Climate, & Conservation Task Force. Jul 8, 2021. Cancer Treatment Centers of America. Emily Dixon. Feb 15, 2019. CNN. Water May 11, 2015. NPR. Seth Siegel with Naty Barak. Jun 1, 2017. Real Assets Adviser 4(6). Healthcare Aug 2022. The Healthy Future Task Force. Jul 2022. The Healthy Future Task Force. Jun 2022. The Healthy Future Task Force. Jun 2022. The Healthy Future Task Force. Financial Regulations Sep 2022. Jobs & the Economy Task Force. Sep 2022. Jobs & the Economy Task Force. Jun 2022. The Energy, Climate, & Conservation Task Force. Parents Bill of Rights Committee on Education & Labor Republicans. Committee on Education & Labor Republicans. 2014 Government Funding 113th Congresss. 113th Congress. Oct 16, 2013. Clerk of the U.S. House of Representatives. Workforce Education Jul 2022. Jobs & the Economy Task Force. Speak Out Act 117th Congress. Emilie Shumway. Nov 16, 2022. Legal Dive. Respect for Marriage Act 117th Congress. Annie Karni. Nov 16, 2022. The New York Times. Maggie Astor. Nov 16, 2022. The New York Times. Al Weaver. Nov 16, 2022. The Hill. Soon-to-be Laws Audio Sources Sep 23, 2022 Kevin McCarthy on YouTube Clips Rep. Jim Jordan (R-OH): They told us so many things that turned out not to be accurate. I mean, just think about it, they told us this thing didn't come from a lab. Sure looks like it did. But they want us to believe it was a bat to a penguin to Joe Rogan. And then we all got, it right? I'm just a country boy from Ohio. But I kind of think it probably came from a lab. I asked Dr. Burks a question three months ago in a hearing. I said Dr. Burks, when the Biden administration told us that the vaccinated couldn't get it, were they guessing or lying? Interesting. She paused and said, Well, Congressman, I like to think they hoped. I said, so it was a guess, a lie, or a hope. I'm not against the vaccine. I'm just saying that we're big boys and girls, we can handle the truth. Give us the facts. We are committed to doing the investigations that need to be done. Rep. Kevin McCarthy (R-CA): On our very first bill we're going to repeal 87,000 IRS agents. Rep. Kevin McCarthy (R-CA): We believe in fairness. We should ensure women only compete in women's sports. Rep. Steve Scalise (R-LA): We will have oversight hearings on what happened. Who was responsible for opening up America's southern border? How many have come in? How many are on the terrorist watch list that we know of, and when will we start doing something about it? In our commitment to America, we talk about securing America's border and holding them accountable. We will give Secretary Mayorkas a reserved parking spot, he will be testifying so much about this. So that's the kind of oversight we're going to be doing. February 5, 2014 ?Little fish? montage featuring Former Rep. Doc Hastings (R-WA), Former Rep. Devin Nunes (R-CA), and Rep. Kevin McCarthy (R-CA). October 8, 2013 Rep. Pete Sessions (R-TX): I am very proud of not only what our Speaker is doing but of our majority leader, ERIC CANTOR, and our whip, KEVIN MC CARTHY. October 1, 2013 Former Rep. Phil Gingrey (R-GA): In fact, House Republicans have passed three continuing resolutions, or temporary spending bills, to keep this government open and to either defund or to delay ObamaCare?which the majority of Americans support. They were against it 31?2 years ago; they are against it today; and they support what we are doing in the Republican House of Representatives. I praise and commend Speaker JOHN BOEHNER and the leadership of ERIC CANTOR and KEVIN MCCARTHY for the strength that they have had in regard to this and for being so inclusive for every single member of our caucus. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-11-28
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CD262: Inside C-SPAN with Howard Mortman

As we wait for the final results of the midterm elections to determine which party will control the House, enjoy Jen's interview with C-SPAN Communications Director, Howard Mortman. Jen and Howard discuss all things C-SPAN, including what C-SPAN crews are and are not allowed to film and the network's funding sources and distribution, as well has Howard's podcast, the Weekly, and his book, When Rabbis Bless Congress. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Executive Producer Recommended Sources Background Sources Howard Mortman Jen on C-SPAN Alzheimer?s Testimony Seth Rogan's and Charity February 26, 2014. Senate Appropriations Subcommittee on Labor, Health, and Human Services. Origins of COVID-19 Katherine Eban and Jeff Kao. October 28, 2022. ProPublica. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-11-12
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CD261: Inflation Reduction Act

The Inflation Reduction Act is a new law designed to hasten the United States? energy transition (and do nothing about inflation). In the last episode before the midterm election, learn about the energy path the Democratic Party has plotted for us and learn how this new law can possibly save you tens of thousands of dollars. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Jen Podcast Appearances The Living Numbers Podcast with Tony Rambles. A Word with Tom Merritt. Background Sources Recommended Congressional Dish Episodes Tax Credits and Refunds Home Energy Efficiency Tax Credits eFile. Rocky Mengle. Sept 16, 2022. Kiplinger. Updated Aug 18, 2022. Energy Star. Electric Appliance Rebates U.S. Census Bureau. Electric Car Tax Credit Cornell Law School Legal Information Institute. Alternative Fuels Data Center. U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy. Kelley R. Taylor. Oct 18, 2022. Kiplinger. Greg Iacurci. Oct 15, 2022. CNBC. John Bozzella. Aug 5, 2022. Alliance for Automotive Innovation. John Bogna. Jun 22, 2022. PCMag. U.S. Geological Survey. U.S. Department of the Interior. Princeton University Research & Project Administration. Alternative Fuel vehicle refueling property credit Kelley R. Taylor. Sept 14, 2022. Kiplinger. Cornell Law School Legal Information Institute. Hydrogen Catherine Clifford. Sep 8, 2022. CNBC. Emma Ochu et al. Jun 17, 2021. Columbia University School of International and Public Affairs, Center on Global Energy Policy. Open Secrets. Jay Bartlett and Alan Krupnick. December 2020. Resources for the Future. 24/7 Wall St. Feb 16, 2020. Market Watch. Health Care Oct 5, 2022. Centers for Medicare & Medicaid Services. 2022. Centers for Medicare & Medicaid Services. Carbon Capture Angela C. Jones and Ashley J. Lawson. Oct 5, 2022. Congressional Research Service. Emily Pontecorvo. Aug 22, 2022. Grist. 2021. Global CCS Institute. Nov 17, 2011. European Environment Agency. Offshore Wind Leases Abby Husselbee and Hannah Oakes. Aug 25, 2022. Harvard University Environmental & Energy Law Program. Sept 8, 2020. The White House. Fossil Fuels David Jordan. Oct 6, 2022. Roll Call. Aug 18, 2022. Enersection. Cornell Law School Legal Information Institute. The Associated Press. Apr 16, 2022. NPR. Taxes Kelley R. Taylor. Oct 10, 2022. Kiplinger. August 16, 2022. EY. Jacob Bogage. Aug 12, 2022. The Washington Post. Peter Warren. Aug 11, 2022. Empire Center. Open Secrets. November 13, 2017. Congressional Budget Office. The Law Revised August 5, 2022. Congressional Budget Office. Audio Sources September 22, 2022 Senate Committee on Energy and Natural Resources Witnesses: Tim Hemstreet, Managing Director for Renewable Energy Development, PacifiCorp Spencer Nelson, Managing Director, Research and New Initiatives, ClearPath Ted Wiley, President and Chief Operating Officer, Form Energy 19:19 Sen. Joe Manchin (D-WV): When it comes to storage, there has rightly been a focus on the supply chain, particularly for lithium ion batteries that power electric vehicles and phones in our pockets and many other modern technologies. While we have benefited from the use of this important battery chemistry, the fact that China is responsible for 75% of global lithium ion battery production, including 60% of the world's cathode production and 80% of the world's anode production, should give everyone pause. That is why I was proud to champion Inflation Reduction Act which incentivized the onshoring of the entire battery supply chain, from the production and processing of raw materials, to the battery pack assembly and everything in between. March 31, 2022 Senate Committee on Energy and Natural Resources Witnesses: Dr. Steve Fortier, Director, USGS National Minerals Information Center, U.S. Department of the Interior Scott Melbye, President, Uranium Producers of America Julie Padilla, Chief Regulatory Officer, Twin Metals Minnesota Abigail Wulf, Vice President, Critical Minerals Strategy and Director of the Center for Critical Minerals Strategy, Securing America's Future Energy Dr. Paul Ziemkiewicz, Director, West Virginia Water Research Institute, West Virginia University 24:14 Sen. Joe Manchin (D-WV): It makes no sense to remain beholden to bad actors when we have abundant resources in manufacturing know-how here in the United States. And make no mistake, we are beholden, particularly when it comes to many of the minerals that go into clean energy technologies. That is why I've sounded the alarm about going down the path of EVs alone and advocated for equal treatment for hydrogen 45:08 Abigail Wulf: As things stand, without some significant course corrections on America's critical minerals enterprise, the leading automobile power won't be the United States. It will be China. Not because of superior design or technology, but because of their massive head start and established market power, if not utter dominance, in all aspects of the supply chain that powers these [electric] vehicles. But simply mining alone does not begin to address the fundamentals of America's mineral supply chain challenge. Where we are most lacking and where China is most dominant is in that crucial but largely hidden processing phase and midstream component production. We simply can't dig up a rock and stick it in a Tesla. You have to crush it, smelt it, and refine it into precursor material that has been sold to somebody else to turn it into battery guts, namely cathodes, anodes and electrolytes. Today, the United States has less than 4% of all minerals processing capacity and makes 0% of the world's cathodes and anodes. By contrast, China is the world's largest processor of copper, nickel, cobalt, lithium and rare earth elements, and they control 60% of anode production and 40% of global cathode production. Consider that in 2019, about 70% of the world's cobalt supply was mined in the Democratic Republic of Congo, but more than 70% of that cobalt was refined in or controlled by China. February 2, 2022 Senate Committee on Energy and Natural Resources Witnesses Dr. Sunita Satyapal, Director, Hydrogen and Fuel Cell Technologies Office, Hydrogen Program Coordinator, U.S. Department of Energy Dr. Glen Richard Murrell, Executive Director, Wyoming Energy Authority Jonathan Lewis, Senior Counsel and Director of Transportation Decarbonization, Clean Air Task Force Michael J. Graff, Chairman & Chief Executive Officer, American Air Liquide Holdings, Inc. Brian Hlavinka, Vice President, New Energy Ventures, Corporate Strategic Development, Williams 21:07 Sen. Joe Manchin (D-WV): However, we have some challenges to tackle in order to build a clean hydrogen economy. Producing hydrogen without emissions is two to six times the cost of current production methods. Also, retrofitting end-use applications to use hydrogen as a feedstock, from chemical plants to cars and trucks, will take huge investments from both public and private sectors. This is the demand that we need to develop hydrogen markets that can sustain themselves. The other big challenge is the safe and efficient transport and storage of large volumes of hydrogen, given its physical properties. There's a lot of promising work being done in this space and will allow us to leverage our vast natural gas pipeline network to transport hydrogen to market. 22:00 Sen. Joe Manchin (D-WV): That is why I made research, development, and demonstration of these technologies a central part of the Energy Infrastructure Act, which this committee reported with bipartisan support last year, and which was subsequently included in the recently enacted Bipartisan Infrastructure Law. In that bill, we fund $9.5 billion in research, development and demonstration of clean hydrogen, and we tasked the Department of Energy to develop a national strategy and a roadmap to get us to a clean hydrogen economy. 27:25 Sen. James Lankford (R-OK): I'm concerned that the conversation around green versus blue hydrogen will pit technologies against each other rather than working together to establish a robust hydrogen marketplace. The simple truth right now is that 95% of hydrogen produced in the United States is made from natural gas. 1:42:00 Sen. Lisa Murkowski (R-AK): Can you share what the administration's policy is with regards to converting natural gas to hydrogen? We recognize that there are some within the [Biden] administration, certainly some groups that may have influence on the administration, who are very firm about not using fuel sources like natural gas. So the question is, is there a role for conversion to play? And what might we anticipate with regards to support and funding that might come with it? Dr. Sunita Satyapal: Thank you again for the question. And as mentioned, with hydrogen shot, we're really looking at all of the pathways. It's really about clean hydrogen. So whether it's natural gas, carbon feedstocks, nuclear renewables, you know, any pathway to get to the low carbon intensity, we're really pivoting away from the colors. There's a lot of complexity: green, blue, purple, turquoise?.Pyrolysis is another approach. In fact, our loan program office just announced financing of $1 billion solid carbon, which is another value added product, no need for the CCS portion. So definitely an all-of-the-above strategy needed to meet all of our goals. July 28, 2020 Senate Committee on Energy and Natural Resources Witnesses: Steven Winberg, (Former) Assistant Secretary for Fossil Energy at the US Department of Energy Shannon Angielski, Executive Director of the Carbon Utilization Research Council Dr. Julio Friedmann, Center on Global Energy Policy, Columbia University 25:06 Dr. Julio Friedmann: Net zero means that any residual emissions must be balanced by removal, as Secretary Moniz said. It means that reduction of co2 emissions and removal of co2 emissions are complementary but distinct actions and that both are necessary. The National Academies and the IPCC find that this must be done at enormous scale exceeding the size of the global oil and gas industry today. We are not where we need to be to make this real. 48:35 Shannon Angielski: In addition, the International Energy Agency modelled the contributions of different technologies to meet that mid-century 2 degree scenario. And it shows that CCUS accounts for approximately 100 Giga tons of needed global co2 emissions reductions by 2060. To put this into perspective, this would be achieved by the operation of 1100 carbon capture systems on the equivalent of 500 megawatt coal fired units, or 3200 natural gas combined cycle units, which would need to be operating for the next 30 years. 1:59:00 Steven Winberg: The rest of the world is going to continue using fossil energy, whether it's coal or oil or natural gas. And that's why we have moved forward quickly on the coal first program, because it offers the opportunity for what I think of as 21st century coal. Right now the Chinese own the space in power generation ? coal fired power generation. We have an opportunity to take technology and springboard over what the Chinese are building, which is basically 1970s vintage technology that we built, and they now have improved slightly, but they're selling it around the world, to countries that have coal under their feet, and they're going to continue using that coal. But with the coal first program, we can move into power generation, and we can move into hydrogen production, because these countries also, as they build out their transport sector, may not do it the same way that developed countries, they may move more swiftly into hydrogen. And so there's an opportunity there to take our technology using their natural resources that are under their feet, and produce zero emitting power generation and zero emitting hydrogen and perhaps even net negative hydrogen and net negative electricity and they can use that hydrogen in the transportation sector as well as the industrial sector. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-10-30
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CD260: Failure to Fund with Graham Elwood

Congress has failed to fund the government on time again. In this episode, Graham Elwood joins Jen as she geeks out on all the dingleberries attached to the new law extending Congress?s funding deadline until December 16th. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Executive Producer Recommended Sources August 8, 2022. The Peter Collins Show. Background Sources Recommended Congressional Dish Episodes FDA User Fees Katie Hobbins. Oct 3, 2022. Medical Device + Diagnostic Industry (MD+DI). New Mexico Fire Ryan Boetel. Sept 29, 2022. Albuquerque Journal. Associated Press. Jun 21, 2022. The Guardian. Elizabeth Miller and Jason Samenow. May 5, 2022. The Washington Post. Republicans and Disaster Relief Funding Sharon Zhang. Oct 3, 2022. Truthout. Zach Schonfeld. Oct 3, 2022. Lauren Book. Oct 3, 2022. Sanjana Karanth. Oct 2, 2022. HuffPost. Anna Skinner. Sept 30, 2022. Newsweek. Sergio Bustos. Sept 30, 2022. Tallahassee Democrat. Patrick Leahy. Sept 9, 2022. Vermont Biz. Jackson Water Crisis Anthony Warren. Sept 30, 2022. Jackson WLBT. Michael Goldberg. Sept 27, 2022. Yahoo News. Annie Snider and Lara Priluck. Sept 21, 2022. Politico. James Brasuell. Aug 20, 2022. Planetizen. Continuing Resolution Aidan Quigley. Sept 30, 2022. Roll Call. David Hawkings. Sept 7, 2016. Roll Call. Ukraine James Bradley. Oct 4, 2022. Emily Cochrane. Sept 29, 2022. The New York Times. Chelsey Cox. Sept 29, 2022. CNBC. Jackie Walorski Crash Marek Mazurek. Sept 16, 2022. Appropriations Congressional Research Service. Jeff Sachs Jeff Sachs on Bloomberg Global Financial News LIVE. Oct 3, 2022. Bono. Apr 18, 2005. TIME. Peter Passell. Jun 27, 1993. The New York Times. Campaign Contributions from the Defense Industry Open Secrets. Afghanistan Craig Whitlock. The Afghanistan Papers: A Secret History of the War. Simon & Schuster: 2021. Spencer Ackerman. Apr 29, 2013. U.S. Infrastructure and Global Rankings Contaminated Water in the United States Gloria Oladipo. Sep 6, 2022. The Guardian. Emily Holden et. al. Feb 26, 2021. The Guardian. Maura Allaire. Feb 12, 2018. The Proceedings of the National Academy of Sciences (PNAS) 115(9). Paul Pelosi Chip Stock Caroline Vakil. Jul 27, 2022. The Hill. Starbucks Unionization Union Election Data. Laws and Treaties Audio Sources Oct 3, 2022 Jeff Sachs: The main fact is that the European economy is getting hammered by this by the sudden cut off of energy. And now to make it definitive the destruction of the Nord Stream pipeline, which I would bet was a US action, perhaps the US and Poland. This is a speculation ? Bloomberg Host: That's quite a statement. Why do you feel that that was a US action? What evidence do you have of that? Jeff Sachs: Well, first of all, there's direct radar evidence that US helicopters, military helicopters that are normally based in Gdansk, we're circling over this area. We also had the threats from the United States earlier in this year that one way or another, we are going to end Nord Stream. We also have a remarkable statement by Secretary Blinken, last Friday in a press conference, he says this is also a tremendous opportunity. It's a strange way to talk if you're worried about piracy on international infrastructure of vital significance. I know this runs counter to our narrative, that you're not allowed to say these things in the West, but the fact of the matter is, all over the world, when I talk to people, they think the US did it. And by the way, even reporters on our papers that are involved tell me privately, ?Well, of course,? but it doesn't show up in our media. September 30, 2022 September 29, 2022 April 30, 1998 Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-10-10
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CD259: CHIPS: A State Subsidization of Industry

A new law, known as the CHIPS Act, provides over $50 billion to existing, profitable companies to fund new semiconductor production facilities in the United States. In this episode, we examine why Congress decided to gift these companies our tax money now and explore the geopolitical implications of this funding decision. Beyond semiconductors, the law provides further corporate welfare for the creation of things that many of us tax payers likely support. This law is complicated; let's get nuanced. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Semiconductor Industry July 2022. Semiconductor Industry Association. February 2022. Semiconductor Industry Association. September 2021. Semiconductor Industry Association. Taiwan Bansari Mayur Kamdar and Medha Singh. Aug 2, 2022. Reuters. Karen M. Sutter. Mar 7, 2022. Congressional Research Service. Yimou Lee, Norihiko Shirouzu and David Lague. Dec 27, 2021. Reuters. PRISM Program Derek B. Johnson. Aug 27, 2018. FCW. Wealthy Shareholders Juliana Kaplan and Andy Kiersz. Oct 19, 2021. Insider. National Endowment for Democracy National Endowment for Democracy. National Science Foundation Directorate Mitch Ambrose. Mar 17, 2022. American Institute of Physics. Mar 17, 2022. House Committee on Science, Space, and Technology. Fusion Research Diffen. Open Secrets. Open Secrets. K&L Gates. American Exception Book Aaron Good. 2022. Skyhorse Publishing. The Law Bills Later Added to the CHIPS Act Audio Sources Sept 18, 2022 60 Minutes Scott Pelley: What should Chinese President Xi know about your commitment to Taiwan? President Joe Biden: We agree with what we signed on to a long time ago, that there's a One China policy and Taiwan makes their own judgments about their independence. We are not moving, we're not encouraging their being independent. That's their decision. Scott Pelley: But would US forces defend the island? President Joe Biden: Yes, if in fact, there was an unprecedented attack. Scott Pelley: [overdub] After our interview, a White House official told us US policy has not changed. Officially, the US will not say whether American forces would defend Taiwan. But the Commander in Chief had a view of his own. [interview] So unlike Ukraine, to be clear, sir, US forces, US men and women would defend Taiwan in the event of a Chinese invasion? President Joe Biden: Yes. Jul 27, 2022 Dec 8, 2021 Senate Committee on Foreign Affairs 30:45 Sen. James Risch (R-ID): A unilateral change in the status quo regarding Taiwan would not only threaten the security and liberty of 23 million Taiwanese, but also significantly damage vital US interests and alliances in the Indo Pacific. We would lose a model of democracy at a time of creeping authoritarianism. It would give China a platform in the first island chain to dominate the Western Pacific and threaten, indeed, US homeland. The consequences for Japan security, and therefore, the US-Japan alliance, are hard to overstate. Semiconductor supply chains would fall into China's hands, and it would emboldened China in other territorial disputes, including with India, and in the South China Sea. November 17, 2021 House Committee on Science, Space, and Technology, Subcommittee on Energy Witnesses: Dr. Troy Carter, Director, Plasma Science and Technology Institute, University of California, Los Angeles and Chair, Fusion Energy Sciences Advisory Committee Long Range Planning Subcommittee Dr. Tammy Ma, Program Element Leader for High Energy Density Science, Lawrence Livermore National Laboratory Dr. Robert Mumgaard, CEO, Commonwealth Fusion Systems Dr. Kathryn McCarthy, Director, U.S. ITER Project Office Dr. Steven Cowley, Director, Princeton Plasma Physics Laboratory Clips Robert Mumgaard: However, from where I sit, I see three reasons why I'm very optimistic the US can create a definitive lead in this new industry. First, the growth of the private sector. Over $2.4 billion in private capital has been invested in the fusion companies that now number nearly 30. This is a similar amount of capital as in all the nuclear fission small modular reactor companies. This is coming from a large range of investors across venture capitalists, to university endowments, to large energy companies. And they're putting capital at risk in fusion because they understand that the world needs a fundamentally new source of clean energy if we are going to meet our decarbonization goals. And these companies are highly ambitious, with a recent survey stating that 84% of them believe that fusion will be on the grid in the 2030s or earlier. Robert Mumgaard: We will proceed with the commercialization of our first fusion pilot plant called ARC. We hope to have that online in the early 2030s. Robert Mumgaard: The second reason I'm optimistic is that the public program has produced a consensus plan. Detailed in the National Academies and FESAC (Fusion Energy Sciences Advisory Committee) Recommendations is a transition of the public funded program towards the US developing commercial energy. We need to stop some activities and transition to others. But the researchers are enthusiastic and they are ready. We have a new generation of leaders at national laboratories and universities hungry to develop that technology. And that plan has been authorized but has not yet been implemented. Robert Mumgaard: And we're not alone. The other companies like TAE and General Fusion, Helion, Tokamak Energy, are looking at similar timeframes and experiencing similar growth. All these companies are looking to see which governments are going to be the best partners. And unfortunately, we are already seeing defections, with a major facility that could have been built in the US, instead being built in the UK. It'd be much better if the US public program leveraged the private sector, aligning with the technical goals and timelines to keep it happening here. Robert Mumgaard: The third reason I'm hopeful is the movement towards public private partnerships and we know that when the public and private sectors work together and recognize what each side is good at, we create vibrant ecosystems. We saw this in commercial space, with NASA and SpaceX. We saw it even more recently with the COVID-19 vaccine October 1, 2020 Senate Committee on Armed Services, Subcommittee on Readiness and Management Support Witness: Ellen M. Lord, Under Secretary of Defense for Acquisition and Sustainment 1:22:10 Ellen Lord: I believe there may well be a lot of this, frankly: not continuing to engage with these Chinese companies on sensitive issues, but in turn, developing industrial bases here that makes us not reliant on that back and forth. There's quite a bit of discussion within the inner agency right now about constraining Chinese involvement from everything from investments to specific commodities. But again, I think one of the areas where we could have the most impact on China broadly, is reshoring microelectronics. And right now, my team is working very closely across DOD, as well as the inner agency to come up with a very specific recommendation for some public-private partnerships in order to develop the capability here domestically. We at DOD are only about 1% of the overall microelectronics market, however, we have some critical needs. July 16, 2020 15:20 Attorney General Bill Barr: ?Made in China 2025? is the latest iteration of the PRC?s state-led, mercantilist economic model. For American companies in the global marketplace, free and fair competition with China has long been a fantasy. To tilt the playing field to its advantage, China?s communist government has perfected a wide array of predatory and often unlawful tactics: currency manipulation, tariffs, quotas, state-led strategic investment and acquisitions, theft and forced transfer of intellectual property, state subsidies, dumping, cyberattacks, and industrial espionage. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-09-24
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CD258: Gain of Function Research

On August 3rd, Senate Republicans held a hearing examining gain of function research: its possible role in creating the COVID-19 pandemic; the problems with oversight of this dangerous research; and recommendations to Congress for how to fix those problems. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Gain-of-function Research Talha Burki. Feb 1, 2018. The Lancet Infectious Diseases 18(2): pp 148-149. 2017. U.S. Department of Health and Human Services. Michael J. Selgelid. Aug 8, 2016. Science and Engineering Ethics 22(4): pp 923-964. Sara Reardon. October 22, 2014. Nature 514: pp 411-412. Oct 17, 2014. The White House Blog. Board on Life Sciences; Division on Earth and Life Studies; Committee on Science, Technology, and Law; Policy and Global Affairs; Board on Health Sciences Policy; National Research Council; Institute of Medicine. April 13, 2015. National Academies Press. Marc Lipsitch. Jun 29, 2014. The New York Times. COVID-19 Origin Theories Gary Ruskin. Sep 14, 2022. U.S. Right to Know. Alina Chan. Jul 30, 2022. Medium. Maria Cheng and Janey Keaten. Jun 9, 2022. AP News. Jun 9, 2022. World Health Organization. Carl Zimmer and James Gorman. Updated Oct 13, 2021. The New York Times. Richard Muller and Steven Quay. Oct 5, 2021. The Wall Street Journal. Steven Quay and Richard Muller. Jun 6, 2021. The Wall Street Journal. May 30, 2021. This Week in Virology [Podcast]. Glenn Kessler. May 25, 2021. The Washington Post. Jorge Casesmeiro Roger. Mar 24, 2021. Independent Science News. Josh Rogin. Mar 8, 2021. Politico. Jane Qiu. Jun 1, 2020. Scientific American. EcoHealth Alliance and Funding for Coronavirus Research Katherine Eban. March 31, 2022. Vanity Fair. Sharon Lerner and Maia Hibbett. Sep, 23 2021. The Intercept. Glenn Kessler. May 18, 2021. The Washington Post. Meredith Wadman and Jon Cohen. Apr 30, 2020. Science. National Institutes of Health. May 27, 2014. NIH RePORTER. NIH Database Data Removal Amy Dockser Marcus. Jun 23, 2021. The Hearing August 3, 2022 Senate Committee on Homeland Security and Governmental Affairs: Subcommittee on Emerging Threats and Spending Oversight Witnesses: Richard H. Ebright, Professor of Chemistry and Chemical Biology and Laboratory Director, Rutgers University Waksman Institute of Microbiology Steven Quay, CEO and Founder, Atossa Therapeutics, Inc. Kevin M. Esvelt, Associate Professor of Media Arts and Sciences, Massachusetts Institute of Technology Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-09-18
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CD257: PACT Act - Health Care for Poisoned Veterans

After decades of our government denying healthcare to veterans they exposed to poisonous toxins, the PACT Act - which will eventually provide this hard-fought-for care - is now law. In this episode, learn exactly who qualifies for these new benefits and when, discover the shocking but little-known events that led to their poisonings, and find out what exactly happened during those 6 days when Senate Republicans delayed the passage of the PACT Act. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes What the PACT Does and Doesn?t Do Aug 10, 2022. VA Claims Insider. Abraham Mahshie. Aug 10, 2022. Air Force Magazine. Leo Shane III. Aug 4, 2022. Military Times. U.S. Department of Veterans Affairs. The VA Sidath Viranga Panangal, Jared S. Sussma, and Heather M. Salaza. Jun 28, 2022. Congressional Research Service. U.S. Department of Veterans Affairs. U.S. Department of Veterans Affairs. U.S. Department of Veterans Affairs. Toxic Exposures Burn Pits November 20th, 2014. VAntage Point. Feb 8, 2010. Military Times. U.S. Army Center of Military History. U.S. Army Center of Military History. Agent Orange Donnie La Curan. April 1, 2021. Veterans Resources. Charles Dunst. Jul 20, 2019. The Atlantic. Patricia Kime. May 11, 2020. Military.com. May 11, 2020. Yale Law School. Vietnam Security Police Association. Susan E. Davis. Apr 9, 1991. The Washington Post. Enewetak Atoll Chris Shearer. Dec 28, 2020. Vice. March 2018. U.S. Defense Threat Reduction Agency. Dave Philipps. Jan 28, 2017. The New York Times. Palomares, Spain Nuclear Accident November 1, 2021. Yale Law School Today. Dave Philipps. June 19, 2016. The New York Times. April 2001. United States Air Force. U.S. Department of Energy. February 1966 U.S. Department of Energy Archives. Thule, Greenland Nuclear Accident Robert Mitchell. Jan 21, 2018. The Washington Post. 897 F.Supp. 1098 (1995). United States District Court, N.D. Illinois, Eastern Division. June 1982. History and Research Division, Headquarters, Strategic Air Command. Captain Robert E. McElwee. U.S. Defense Technical Information Center. South Carolina Nuclear ?Storage? Doug Pardue. May 21, 2017 (Updated Jun 28, 2021). The Post & Courier. Gulf War Illness Johns Hopkins Medicine. May 11, 2022. UT Southwestern Medical Center Newsroom. Camp Lejeune Water Contamination The Carlson Law Firm on YouTube. Agency for Toxic Substances and Disease Registry. Agency for Toxic Substances and Disease Registry. Agency for Toxic Substances and Disease Registry. Oct 18, 2009. St. Lawrence County Government. St. Louis Area Nuclear Contamination Chris Hayes. Jul 27, 2022. Fox 2 Now - St. Louis. Jim Salter. Mar 19, 2022. St. Louis Post-Dispatch. Jesse Bogan. Dec 20, 2021. St. Louis Post-Dispatch. Apr 30, 2019. U.S. Agency for Toxic Substances and Disease Registry. Robert Alvarez. February 11, 2016. Bulletin of the Atomic Scientists. U.S. Environmental Protection Agency. HBO Documentaries. Hanford Waste Management Site Jul 26, 2019. The International Campaign to Abolish Nuclear Weapons. Biden Drone Bombing Aug 7, 2022. The Express Tribune. Jon Stewart People Staff. August 11, 2022. People. Republican F*ckery Ryan Cooper. Aug 3, 2022. The American Prospect. Jordain Carney and Anthony Adragna. August 1, 2022. Politico. Oct 10, 2022. Clerk of the U.S. House of Representatives. U.S. Foreign Wars No One Talks About Ellen Knickmeyer. Jun, 16 2022. Military.com. Joseph R. Biden. June 08, 2022. The White House. Muhammad Fraser-Rahim. Oct 16, 2017. Newsweek. Overseas Contingency Operations Emily M. Morgenstern. Updated August 13, 2021. Congressional Research Service. Todd Harrison. Jan 11, 2017. Center for Strategic and International Studies The Law Timeline of Votes and Changes July 12, 2022. U.S. House of Representatives. August 1, 2022. Congressional Record -- Senate. Audio Sources August 10, 2022 PBS NewsHour on YouTube August 1, 2022 Global News on YouTube The Carlson Law Firm on YouTube July 31, 2022 CNN Clips 7:00 Sen. Pat Toomey (R-PA): Here's what you need to keep in mind, Jake. First of all, this is the oldest trick in Washington. People take a sympathetic group of Americans ? it could be children with an illness, it could be victims of crime, it could be veterans who have been exposed to toxic chemicals ? craft a bill to address their problems, and then sneak in something completely unrelated that they know could never pass on its own and dare Republicans to do anything about it because they know they'll unleash their allies in the media and maybe a pseudo-celebrity to make up false accusations to try to get us to just swallow what shouldn't be there. That's what's happening here, Jake. 10:40 Jake Tapper: So one of the questions that I think people have about what you're claiming is a budgetary gimmick is, the VA budgets will always remain subject to congressional oversight, they can't just spend this money any way they want. And from how I read this legislation, it says that this money has to be spent on health care for veterans who suffered exposure from toxic burned pits. Sen. Pat Toomey (R-PA): This is why they do this sort of thing, Jake, because it gets very deep in the weeds and very confusing for people very quickly. It's not really about veteran spending. It's about what category of government bookkeeping, they put the veterans spending in. My change, the honest people acknowledge it will have no effect on the amount of money or the circumstances under which the money for veterans is being spent. But what I want to do is treat it, for government accounting purposes, the way we've always treated it for government accounting purposes. Because if we change it to the way that the Democrats want, it creates room in future budgets for $400 billion of totally unrelated, extraneous spending on other matters. July 31, 2022 CBS News Clips 4:10 John Dickerson: 123 Republicans in the House voted for this, 34 Senate Republicans voted for it. Same bill. This week, the bill didn't change but the Republican votes did. Why? Sen. Pat Toomey (R-PA): Now, the Republican votes didn't change on the substance of the bill. Republicans have said we want an amendment to change a provision that has nothing to do with veterans health care. The Republicans support this. The Democrats added a provision that has nothing to do with veterans health care, and it's designed to change government accounting rules so that they can have a $400 billion spending spree. 6:25 Sen. Pat Toomey (R-PA): Honest Democrats evaluating this will tell you: if my amendment passes, not a dime change in spending on veterans programs. What changes is how the government accounts for it. John Dickerson: I understand, but the accounting change, as you know, is a result ? the reason they put it in that other bucket is that it doesn't subject it to the normal triage of budgeting. And the argument is that the values at stake here are more important than leaving it to the normal cut and thrust of budgeting. July 29, 2022 The Problem with Jon Stewart on Youtube Clips 00:20 Sen. Ted Cruz (R-TX): What the dispute is about is the Democrats played a budgetary trick, which is they took $400 billion in discretionary spending and they shifted it to a mandatory one. Jon Stewart: What Ted Cruz is describing is inaccurate, not true, bulls ** t. This is no trick. Everything in the government is either mandatory or discretionary spending depending on which bucket they feel like putting it in. The whole place is basically a f * ing shell game. And he's pretending that this is some new thing that the Democrats pulled out, stuck into the bill, and snuck it past one Ted Cruz. Now I'm not a big-city Harvard educated lawyer, but I can read. It's always been mandatory spending so that the government can't just cut off their funding at any point. No trick, no gimmick, [it?s] been there the whole f**king time. 1:50 Sen. Ted Cruz (R-TX): What's the Republicans made clear is, if we leave that spending as discretionary ? don't play the budgetary trick ? the bill will pass with 80 or 90 votes. Jon Stewart: I don't know how many other ways to say this, but there was no budgetary trick and it was always mandatory. And when they voted in the Senate on June 16, they actually got 84 votes. And you know who voted for that? Ted f*cking Cruz and every other one of those Republicans that switched their votes. There was no reason for them to switch the votes. The bill that passed the Senate 84 to 14 on June 16 has not had one word added to it by Democrats, or spending fairies, or anybody else. It's the same f*cking bill. July 28, 2022 The Problem with John Stewart on YouTube Clips 3:20 Jon Stewart: June 16, they passed the PACT Act 84 to 14. You don't even see those scores in the Senate anymore. They passed it. Every one of these individuals that has been fighting for years, standing on the shoulders of Vietnam veterans who have been fighting for years, standing on the shoulders of Persian Gulf War veterans fighting for years, Desert Storm veterans, to just get the health care and benefits that they earn from their service. And I don't care if they were fighting for our freedom. I don't care if they were fighting for the flag. I don't care if they were fighting because they wanted to get out of a drug treatment center, or it was jail or the army. I don't give a shit. They lived up to their oath. And yesterday, they spit on it in abject cruelty. These people thought they could finally breathe. You think their struggles end because the PACT Act passes? All it means is they don't have to decide between their cancer drugs and their house. Their struggle continues. From the crowd: This bill does a lot more than just give us health care. Jon Stewart: It gives them health care, gives them benefits, lets them live. From the crowd: Keeps veterans from going homeless keeps veterans from become an addict, keeps veterans from committing suicide. Jon Stewart: Senator Toomey is not going to hear that because he won't sit down with this man. Because he is a fucking coward. You hear me? A coward. 5:15 Jon Stewart: Pat Toomey stood up there ? Patriot Pat Toomey, excuse me, I'm sorry. I want to give him his propers, I want to make sure that I give him his propers. Patriot Pat Toomey stood on the floor and said ?this is a slush fund, they're gonna use $400 billion to spend on whatever they want.? That's nonsense. I call bullshit. This isn't a slush fund. You know, what's a slush fund? The OSO, the Overseas Contingency Operations Fund. $60 billion, $70 billion every year on top of $500 billion, $600 billion, $700 billion of a defense budget. That's a slush fund, unaccountable. No guardrails? Did Pat Toomey stand up and say, this is irresponsible. The guard rails? No, not one of them. Did they vote for it year after year after year? You don't support the troops. You support the war machine. 7:10 Jon Stewart: And now they say, ?Well, this will get done. Maybe after we get back from our summer recess, maybe during the lame duck?? because they're on Senate time. Do you understand? You live around here. Senate time is ridiculous. These motherfuckers live to 200 ? they?re tortoises. They live forever and they never lose their jobs and they never lose their benefits and they never lose all those things. Well, [sick veterans are] not on Senate time. They're on human time. Cancer time. 8:20 Jon Stewart: I honestly don't even know what to say anymore. But we need your help, because we're not leaving. These people cannot go away. I don't know if you know this, you know, obviously, I'm not a military expert. I didn't serve in the military, but from what I understand, you're not allowed to just leave your post when the mission isn't completed. Apparently you take an oath, you swear an oath, and you can't leave, that these folks can leave because they're on Senate time. Go ahead, go home, spend time with your families, because these people can't do it anymore. So they can't leave until this gets done. July 26, 2022 Senate Session July 13, 2022 House Session 3:38:20 **Rep. Mark Takano (D-CA): The way this country has dealt with toxic exposure has been piecemeal and inadequate. President Biden recognizes this, too. Shortly after he was sworn in, I met with the President about our shared priorities for veterans. Upon learning of my goal to pass comprehensive legislation to help toxic-exposed veterans, the President leaned over to me and talked about his son, Beau, who served near burn pits in Iraq and Kosovo. It might be hard for most Americans to imagine what a burn pit looks like because they are illegal in the United States. Picture walking next to and breathing fumes from a burning pit the size of a football field. This pit contained everything from household trash, plastics, and human waste to jet fuel and discarded equipment burning day and night. Beau Biden lived near these burn pits and breathed the fumes that emanated from them. President Biden believes that con- stant exposure to these burn pits, and the toxic fumes they emitted, led to Beau?s cancer and early death. It was during that meeting when I knew I had a partner in President Biden. 2017 HBO Documentaries November 27, 2017 Australian Broadcasting Corporation - Foreign Correspondent Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-08-21
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CD256: Poisonous Pet Collars

Seresto Flea and Tick Collars for dogs and cats have been sold to Americans since 2013. During that time, the EPA has received approximately 100,000 reports of illnesses and 2,500 reports of deaths of animals that wore a Seresto Flea and Tick collar, by far the most reports received about any flea and tick treatment on the market. In this episode, hear testimony from scientists about the Environmental Protection Agency?s disturbingly lax review processes for pesticides in pet products and learn why your vote in November is likely to determine if these popular but dangerous products will stay on American shelves. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Listen to the latest episode of Jen's new podcast with Andrew Heaton and Justin Robert Young ? We're Not Wrong Episode 12: To report an incident directly to the EPA via email [email protected] Executive Producer Recommended Sources Bruce Bueno de Mesquita and Alastair Smith. Public Affairs: 2011. Background Sources Recommended Congressional Dish Episodes Reports on Seresto and Pesticides Jun 15, 2022. House Committee on Oversight and Reform. House Committee on Oversight and Reform, Subcommittee on Economic and Consumer Policy. June 2022. Lauretta Joseph. May 19, 2022. Johnathan Hettinger. Sept. 24, 2021. USA Today. Jordan Liles. Mar 8, 2021. Snopes. Johnathan Hettinger. Mar 2, 2021. USA Today. Lawrence J. Dyckman et al. July 1995. U.S. Government Accountability Office. Lobbying 2022. Open Secrets. Open Secrets. Open Secrets. The Hearing June 15, 2022 Witnesses: Faye Hemsley & Omarion Hemsley, Owners of Deceased Pet Thomas Maiorino, Owner of Deceased Pet Jeffrey Simmons, President and Chief Executive Officer, Elanco Animal Health Incorporated Nathan Donley, Ph.D, Environmental Health Science Director, Center for Biological Diversity Karen McCormack, Former Scientist, Policy Analyst, and Communications Officer (ret.), Office of Pesticide Programs, Environmental Protection Agency Carrie Sheffield (minority witness), Senior Policy Analyst, Independent Women?s Voice Clips 1:20 Rep. Raja Krishnamoorthi (D-IL): As early as 2015, just a few years after the collar entered the US market, an EPA investigation found that among similar products, the Seresto collar ?ranked number one? by a wide margin in terms of total incidents, major incidents and deaths, even after factoring in companies? relative sales. Those findings weren't enough to drive the makers of Seresto collar or the EPA to act. 1:50 Rep. Raja Krishnamoorthi (D-IL): In 2016, Canada's equivalent of the EPA known as the PMRA, concluded based on a review of the same American data available to the EPA that the collar posed too great a risk to pets and their owners to be ever sold in Canada. 2:10 Rep. Raja Krishnamoorthi (D-IL): Even as the death count rose, the EPA allowed Seresto to remain on the market here without even so much as requiring additional warning labels that regulators mandated in places ranging from Australia to Colombia to the European Union. 2:30 Rep. Raja Krishnamoorthi (D-IL): The companies that manufactured the Seresto collar first Bayer animal health and then later Elanco were also aware of the risks, the incidents and the deaths, but they too failed to act. Instead, they hired third party industry insiders to conduct so-called independent reviews of the incident data, which ended up protecting their $300 million a year market but ended up endangering pets. So the Seresto collar stayed the same and so did the consequences. 4:15 Rep. Raja Krishnamoorthi (D-IL): This particular collar has caused 100,000 incidents reported to the EPA and over 2500 pet deaths reported to the EPA. 4:30 Rep. Raja Krishnamoorthi (D-IL): The steps that we are asking for today are crucial, because it's important to protect our pets and our families, too. I now call upon my distinguished colleague, Mr. Cloud for his opening statement. Rep. Michael Cloud (R-TX): Thank you, Chairman. This is the first hearing of the Economic and Consumer Policy Subcommittee this year, and we've been in session for 52 days this year. And our first hearing is on pet collars. And I do realize that our pets are a huge part of our lives, they enrich our families, they provide companionship for my kids, they've helped foster responsibility and compassion and care, important ethics we need in our society. Just recently, our family mourned the loss of our guinea pig, biscuit. And so pets are a huge part of our family lives. But I have to admit that when I saw that this was going to be on the agenda for this week, I cannot help but be concerned, especially coming from South Texas about the 1000s 10s of 1000s of human lives that have passed away due to fentanyl and due to an open border and due to the policies of this administration to continue to aid and abet cartels. And I realized that this is the economic and Consumer Policy Subcommittee. And so I think about economic policy happening right now and where the minds of the American people are. Gas is now averaging $5 A gallon nationwide. For the first time in history. We have not had a hearing. Inflation is at a 40 year high. We have not had a hearing, the American people cannot find baby formula. We still haven't had a hearing. I've mentioned fentanyl is killing Americans, especially our teens at unprecedented rates. We have not had a hearing. Biden's systemic elimination of the safe and secure border he inherited has led to the worst humanitarian and national security crisis in this country's history. We have not had a hearing this term, we could talk about how inflation is affecting the cost of owning a pet, including the increased cost of food, toys, accessories, but we're not talking about that either. Instead, we're holding a hearing on the pet collar, which fights fleas and ticks. And as any pet owner knows fleas and tick management is an essential part of pet care. But I'm not sure it's an essential part of congressional oversight, especially when we take in mind where the American people are at. And frankly, I've talked to a number of people in my district and others who live in other parts of the country and they are really surprised that this has risen to one of the top priorities of commerce at this time in juncture. The subcommittee Republicans would rather explore efforts to help American consumers during these trying times, we would gladly have joined the chairman in holding a hearing on the shortage of baby formula. Moreover, we have welcomed the chance to explore TikTok?s troubling practice of showing dangerous content to minors, an investigation you all started last year. In fact, it's now come to light that teenagers are using tick tock and other social media platforms to purchase illicit drugs including unknowingly in many cases, in most cases, fentanyl. Social media platforms are also using it to recruit young people into the gig economy of human trafficking. A hearing on that crisis could be incredibly important. And on the subject of our nation's youth, CDC bureaucrats have actively pursued an agenda to close schools during the pandemic instead of following the science damaging our children's financial, mental, physical, emotional, and also their learning for years to come. But we still have not had a hearing. Americans are facing incredible economic issues which require us as elected officials to listen and to respond. I do appreciate the fact that our pets play an important part of our lives. We should be kind to animals and we should teach our children to do the same. But I do care immensely more about the human lives that we were elected to serve. 10:20 Rep. Raja Krishnamoorthi (D-IL): A recorded vote has been requested ? we will pause while the we will get the clerk out. 12:00 Rep. Byron Donalds (R-FL): Mr. Chairman, it's already been about what? A minute and a half. Where's the clerk? Is the clerk on lunch and not here today? Rep. Krishnamoorthi (D-IL): I think the clerk is on the way Mr. Donalds, thank you. Rep. Donalds: Is the clerk sitting in the side office just hanging out? I mean, come on, Mr. Chairman. 21:20 Clerk: Mr. Cloud? Rep. Michael Cloud (R-TX): Yes Clerk: Mr. Cloud votes yes. Mr. Keller? Rep. Fred Keller (R-PA): Yes Clerk: Mr. Keller votes yes. Mr. Franklin? Rep. C. Scott Franklin (R-FL): Yes Clerk: Mr. Franklin votes yes. Mr. Clyde? Rep. Andrew Clyde (R-GA): Yes. Clerk: Mr. Clyde votes yes. Mr. Donalds? Rep. Byron Donalds (R-FL): Yes Clerk: Mr. Donalds votes yes. 26:31 Thomas Maiorino: My name is Thomas Maiorina. I reside in Mount Laurel, New Jersey with my wife Monica. I am the father of three boys. My youngest son, Robert turned 12 in 2011. After years of asking for a dog, he wore us down and we decided to rescue a dog from a southern shelter for my son's birthday. After researching online, we adopted a mixed breed mutt that Robbie and his two other brothers named Rooney. Rooney swiftly became a loved member of our family. A bit rambunctious, she was just what a 12 year old boy needed. She loved the run and chase anything the move in the yard. By all measures, we took great care to ensure Rooney had a healthy and happy life. We took her on daily walks, sometimes three a day, hikes on park trails. We monitor her diet and made sure she was seen by the veterinarian as needed, and she received all of her shots. Because she was a bit rambunctious and we lived in a wooded area where there's a lot of wildlife, we were constantly concerned about the problems of fleas and ticks. We consulted with a veterinarian after getting Rooney to determine the best way to protect her against this. We use a variety of prevention methods for the first few years and when we changed veterinarians in approximately 2013 or 14, the new veterinarian strongly recommended that we use the Seresto flea and tick collar, based on all of our options. We heeded that advice and purchased Seresto collars from our local PetSmart. The collars were intended to provide protection for up to eight months. We noticed that after fixing a collar to Rooney?s neck, she began to itch and first had that treated and tested for allergies. We took her to the vet several times during 2018 seeking to find the cause for the ever increasing itching. After several visits and multielement medications, they were unable to determine the cause and we switched to a specialist in 2019 to seek further assistance, where they provided allergy shots and other medications to address the worsening itching and related symptoms. Rooney's behavior then became more erratic as the months wore on she began linking her paws so feverishly they would bleed. She also developed bleeding patches on her stomach. Ultimately, in October 2020, Rooney suffered horrendous grand mal seizure in the presence of myself and my wife. The damage done by the seizure was irreversible. She was a shell of her former self and ultimately, the family decided the most humane thing would be to put Rooney to sleep at the age of nine. In early March 2021, I read an article online about Seresto pet collars resulting in the deaths of 1700 Pets without any warnings from the EPA or the manufacturer. I sought out legal representation not because I wanted financial compensation, but because I took great pains to care for Rooney. The final 18 months of her life were agonizing to watch if I could help prevent another family from going through what my family went through. I wanted to act. I'm here today in furtherance of that effort. I appreciate the committee taking the time to investigate this matter. And thank you for your time. 33:30 Jeffrey Simmons: There are a few points I'd like to emphasize upfront. First, the EPA approved Seresto following more than 80 safety and toxicity studies, all of which show that Seresto and its ingredients have a strong safety profile. Second, more than 80 regulatory bodies around the world have approved Seresto. Seresto is widely used and more than 80 million collars worn over the past decade to protect dogs and cats from fleas and ticks around the world. 34:00 Jeffrey Simmons: Third, adverse event reports are not intended to be, and in fact are absolutely not, proof of causation. Reports require further investigation and analysis to determine cause. And after years of review, our pharmacovigilance team made up of veterinarians and other experts who study adverse event reports has not identified a single death caused by the active ingredients in the collar. 36:45 Jeffrey Simmons: No product is without risk. What matters is whether those risks are reasonable. And in light of the benefits and numerous studies and the incident report data for Seresto demonstrate the product does not pose an unreasonable risk and has a strong safety profile, which is why the American Veterinary Medical Association opposed canceling Seresto?s EPA registration. 38:05 Nathan Donley: My name is Dr. Nathan Donley. I'm the science director for the Environmental Health Program at the Center for Biological Diversity. I have a PhD in Cell and Developmental Biology from Oregon Health and Sciences University. The last seven years of my professional life have been spent researching how pesticides impact people and the environment and the regulatory failures that can actually facilitate harm rather than prevent it. I published three peer reviewed scientific articles and five technical reports on this subject. I've authored over 100 technical scientific comments to the EPA on pesticide documents, including flumethrin and imidacloprid, the two active ingredients in the Seresto collar. I've read through 1000s of pages of FOIA documents I requested on matters related to the approval and continued use of Seresto. 39:40 Nathan Donley: While other agencies like the FDA have robust systems in place to surveil harms from products under their purview, EPA only requires minimal information be submitted four times a year and they delegate this responsibility to the pesticide industry itself. The limited information that is collected includes only the pesticide product name, where the incident occurred, and the severity of the incident. That's it. Oftentimes, the agency doesn't even know if the incident involves a dog or a cat. Even though the EPA determines what incident information it collects, it then turns around and laments that the incident data are insufficient to take regulatory action to protect public health, the environment and our pets. It's a system designed to achieve nothing other than maintaining the status quo. Worse yet, reported incidents significantly underestimate the true scope of harm. The EPA recently estimated that only one in 25 pesticide incidents involving another pesticide called Kamba was actually reported to the authorities. That's only a 4% reporting rate. Given that 100,000 people have reported their concerns about Seresto, this is very alarming because the true number of harmful incidents to pets could be potentially far higher. 41:05 Nathan Donley: The EPA?s counterpart in Canada was so concerned about Seresto incidents and harms of pets and humans that it denied Seresto approval in 2016. Canada analyzed U incident data and determined that Seresto collars had an incident rate 50 times greater than the average flea collar and 36 times greater than Canada's trigger for review. 41:25 Nathan Donley: EPA has no trigger for review of any pesticide product, no matter how much harm is being reported. And because the agency has no mandated trigger for reviewing pesticides like Seresto, rather than choosing to use incident reporting data to inform a robust regulatory process and take dangerous products off the market, EPA routinely chooses to do nothing at all. And that's especially troubling when you consider that Seresto is just one of 18,000 pesticide products currently approved by the EPA. 42:40 Karen McCormack: My name is Karen McCormack. At the present time I am a retired government employee after working over 40 years at the Environmental Protection Agency. During my career at EPA, I first worked in an EPA laboratory as a research coordinator. And in that capacity, I conducted research on numerous pesticides. Later I transferred to EPA headquarters in Washington DC, and worked in various positions in the pesticide program as a scientist, policy analyst, and a communications officer. I also worked in a number of offices at EPA including the Office of the Assistant Administrator for Pesticides and Toxins. Although I'm retired from EPA, I'm still closely following a number of environmental topics and one of those topics of interest to me has been the impact of flea and tick pet products on cats and dogs. 43:30 Karen McCormack: The US Environmental Protection Agency is charged with regulating products that contain pesticides and in ensuring that all pesticide products are safe to use. Before 1996, EPA did not consistently require manufacturers to conduct animal safety studies for pet products containing pesticides. Because pet products with pesticides were available readily in commercial stores, consumers thought they must be safe. This is not necessarily the case. Flea and tick products are designed to kill insects, and they often contain poisonous chemicals. When combined with pesticides that are used outside the home and in the water and food that people drink and eat, the aggregate risks from all these sources of pesticides can be high, especially for children who are vulnerable to toxic chemicals -- much more vulnerable than adults. And it wasn't until the passage of the 1996 Food Quality Protection Act that EPA began to examine the risks from sources other than food, including risks from pet products containing pesticides. After the passage of FQPA, pesticide manufacturers were required to submit to EPA animal safety studies and incident reports showing harm to animals and humans exposed to pesticides and pet products. Between 2012 and the present time the EPA received an increasing number of incident reports related to the use of flea and tick pet collars for dogs and cats. The toxic effects that were described in these many incident reports from the use of certain pet collars ranged from mild effects, such as skin irritation to more severe effects such as intense tremors, seizures, paralysis, organ failure and death. The largest number of incident rate counts that EPA received during this period were from the use of pet collar called Seresto. 45:35 Karen McCormack: Between January 2012 and the present time, EPA has received over 100,000 incident reports, and these incident reports include human incidents as well as pet incidents. These reports also include at least 2300 reports of pet deaths. The number is most likely a very low estimate of the actual number of incidents that are occurring since many pet owners do not know that they can report incidents to EPA and they may not know how to correlate the adverse effects in their pets with a particular pet product. 46:30 Karen McCormack: There are no independent organizations that rank the safety of pet products. And the sales data which is needed to rank the safety of pet products is considered confidential business information by the manufacturers. EPA?s risk assessments also do not tell the full story of what pet products are safe, as they rely heavily on industry generated studies that were conducted on mice and rats rather than dogs and cats. And EPA?s risk assessments also are based mainly on studies that were conducted with only one pesticide in Seresto rather than the combined pesticides in this pet product. 47:10 Karen McCormack: Although the original manufacturers of Seresto, Bayer, did conduct a number of efficacy and safety studies in dogs and cats treated with Seresto, the company did not conduct two very critical studies that are important for determining the safety of a pet product. These tests include a pet transferable residue study, a petting study, to determine the exposure of humans to Seresto. And they did not conduct a study that measures the amount of pesticide that gets in the blood of treated dogs and cats. 48:45 Carrie Sheffield: My name is Carrie Sheffield and I'm a senior policy analyst at the Center for Economic Opportunity at Independent Women's Forum. We are a nonprofit organization committed to increasing the number of women who value free markets and personal liberty. 2:44:20 Rep. Raja Krishnamoorthi (D-IL): Let me just show you some analysis that was conducted by Elanco, which we would just refer to as well as the EPA, as well as the Canadian equivalent of the EPA, which is called the PMRA. Essentially, we look at this chart here, and we see that at the top Elanco computed that 0.51% of pet deaths were ?possibly or probably? caused by the Seresto collar. The PMRA in Canada, looking at a sample of pet deaths concluded that 33% of those pet deaths were possibly or probably caused by Seresto collars. And the EPA here, concluded that 45% were possibly or probably caused by pet by the Seresto collar. Now, sir, I think originally, you said that there is no scientific evidence, no evidence of a causal link, this is clearly evidence, it was so compelling that the Canadian equivalent of the EPA never allowed for Seresto collars to be sold in Canada, correct? Jeffrey Simmons: Yes, I'm aware of that decision. I would also add that 80 other countries have approved this product, we've had over 80 million collars actually used. I'm not familiar with this data comparison, but what I can say is following the EPA regulatory process around the oversight, that we have pharmacovigilance, close to 200 veterinarians and staff on our team, looking at the data through the way the EPA wants us to we have not seen a linkage from the active ingredients. Rep. Krishnamoorthi: I understand that sir, I understand you haven't seen the linkage, although other authorities have and their scientists who are not paid by you have done so. 2:46:25 Nathan Donley: This is what we commonly see, quite frankly, when the regulated industry is doing their own research. It commonly finds that their products are safer than when government agencies or academic scientists take on a similar analysis. 2:46:55 Rep. Raja Krishnamoorthi (D-IL): We have FOIA documents from the EPA, and emails internal to the EPA talking about the Seresto collar. Here's just one of them. This is from an employee who basically voiced their opinion about recent coverage of the Seresto controversy, he said, ?looks like the sh*t has hit the fan?.will be interesting seeing where this goes. I hope there is a FOIA for all communications on this so that our emails are made public. We have been screaming about Seresto for many years.? I presume that you've heard some of these screams and concerns, correct, Ms. McCormack? Karen McCormack: That's correct. A number of EPA employees have contacted me and given me detailed descriptions about what's happening with Seresto and they were very upset that EPA refused to do anything about it. 2:48:25 Karen McCormack: A number of the scientists, and this is not unusual, feel that the decision makers are not considering the science and they're making decisions based on political reasons. I don't know if I have time to talk about this, but I did look at the science that the Canadian government did, the causality analysis. They looked at the consistency and toxicity of effects from exposure of pets to Seresto. And what they found was very disturbing. It was so disturbing that they decided the risks were too high to approve Seresto and they could not be mitigated by putting a label statement on the product or by issuing warning labels, so they refused to approve Seresto. 2:49:25 Rep. Michael Cloud (R-TX): Thank you, Ms. McCormack, for acknowledging that the EPA sometimes makes political decisions, so that's something we'll definitely be coming back to next term. 2:55:05 Rep. Katie Porter (D-CA): Are the active ingredients for Seresto in the United States different from the active ingredients for Seresto collars in other countries? Jeffrey Simmons: No, I do not believe they're any different than the other 80 countries. Rep. Porter: In other countries like in Colombia and Australia, the warning labels for Seresto collars classify the collar as highly toxic and as poison. 2:55:50 Rep. Katie Porter (D-CA): Does the label in the United States have language? Like highly toxic or poison? Yes or no? Jeffrey Simmons: It does not. Rep. Porter: Okay. So the warning label here in the United States, though does say that mild reactions may occur and mentions hair loss, scratching and redness. The most severe symptoms listed are eczema and lesions. This is the warning label: does it mention the potential for death? Jeffrey Simmons: It does not. Rep. Porter: So a pet owner looking at this label that we're looking at would have absolutely no reason, no way to know that Seresto may have caused roughly 100 pet deaths. That's what both the Canadian Pest Management Agency, the PMRA, and the EPA found. Will you change this label, so that it includes deaths as a possible side effect? Jeffrey Simmons: Congresswoman, we do not believe the scientific data warrants a label change. And again, that is not just the 80 studies were submitted. There's been 20 additional added studies since and all of the oversight data that's been done on the 33 million pets over the 10 years. So again, following an EPA regulated process, we're always open if a data warranted, some need for a change, we would do that. 2:57:30 Rep. Katie Porter (D-CA): The EPA encouraged both your predecessor, Bayer, and your company, Elanco, to update the warning label. Yet, you just said that you never have. So the federal government did in fact advise you to update the label and you failed to do so. Is that correct? Jeffrey Simmons: I do not believe that is correct. We are in regular engagement with EPA. We have not received any formal?there's no data that warrants that and there's been no formal engagement on that. 2:58:15 Rep. Katie Porter (D-CA): The EPA asked Bayer, the predecessor here, in 2019 to help the agency collect data on adverse incidents for cats and dogs using the Seresto collar. EPA asked Bayer to split the registration for cats and dogs, so the agency could better understand and evaluate the risks for each type of pet. They refused, saying that change might have, ?an adverse impact on sales? and they also said, ?it would be a substantial increase in work.? Mr. Simmons, are you willing to make that change and split the registration for cats and dogs as the EPA requested? Or do you believe it's too much work? Jeffrey Simmons: I am willing to engage with the EPA on anything that the scientific data and the engagement under the regulatory body of the EPA merits the right thing to do. We believe the 80 studies and all of the pharmacovigilance data that we've submitted to them stands that this is a safe product. 3:00:10 Rep. Andrew Clyde (R-GA): I feel obligated to begin by stating the obvious this afternoon. Today's hearing is a colossal waste of time and resources. 3:13:25 Rep. Henry Johnson (D-GA): And the only reason that the public knew about the harm caused by this pesticide is because the Center for Biological Diversity publicly petitioned the EPA to cancel registration for Seresto flea collars. If they had not bought this to light, do you think we would even know of the dangers presented by these collars? Nathan Donley: No, we wouldn't. You know, the investigation that came out in USA Today in 2021 really brought this to the public attention. And if there wasn't that amount of pressure from the public, this would just still be completely unknown. EPA, for the last 10 years, has not done anything to alert consumers to the harms associated with this product or any other pesticide products where there are a very high number of incidents. 3:15:10 Karen McCormack: I think some of the people at EPA are programmed to go along with whatever industry says. It makes life easier for you, you can go home earlier and you can also get promoted easier if you go along with what industry says. It's unfortunate a problem there. And I've seen it over the years and it's very hard to do something about it. 3:15:40 Karen McCormack: Canada's analysis was very scientific. It was not only based on incident data and sales data, it was based on the toxicity of the two pesticides in Seresto. And they looked at the consistency and what happened eventually with the pets that were exposed to Seresto. 3:19:20 Rep. Raja Krishnamoorthi (D-IL): And so because of the tremendous number of pet incidents, the tremendous number of deaths, even when factoring in sales, I sadly have no choice but to recommend that the EPA commence a notice of intent to cancel proceedings and to fully investigate what's going on with the Seresto collar, and I respectfully request Elanco to voluntarily recall these collars at this time, pending this further investigation. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-07-30
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CD255: Pharmacy Benefit Managers (PBMs)

The recently signed gun law, S. 2938: Bipartisan Safer Communities Act, contained a surprise dingleberry postponing a regulation designed to save seniors money on their pharmaceutical drugs by prohibiting kickbacks to an industry few have heard of: Pharmacy Benefit Managers (PBMs). This little-known but extremely powerful industry deserves much of the blame for ever rising prescription drugs costs in the United States. In this episode, Jen gives you the scoop on PBMs and how they make their money at the expense of Americans who are most dependent on medications. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! We?re Not Wrong Berlin Meetup Contact Justin at Background Sources Recommended Congressional Dish Episodes US Healthcare Landscape Jessi Jezewska Stevens. Apr 23, 2020. Bookforum. Tanza Loudenback. Mar 7, 2019. Insider. Chuck Grassley and Ron Wyden. 2019. U.S. Senate Finance Committee. Kaiser Family Foundation. Sara R. Collins and David C. Radley. Dec 7, 2018. The Commonwealth Fund. PBMs What are PBMs? JC Scott. Jun 30, 2022. The Hill. Zach Freed. Jun 22, 2022. American Economic Liberties Project. Adam J. Fein. Jun 22, 2021. Drug Channels. Nov 11, 2021. 46brooklyn. Adam J. Fein. Feb 3, 2019. The Wall Street Journal. How PBMs Make Money National Association of Chain Drug Stores. RxSafe. True North Political Solutions. Oct 25, 2017. Pharmacy Times. ACA ?Vertical Integration? Loophole Peter High. Jul 8, 2019. Forbes. Angelica LaVito. Nov 28, 2018. CNBC. David Dayen. Oct 12, 2018. The American Prospect. Jeff Byers. April 12, 2018. Healthcare Dive. Susan Morse. May 10, 2017. Healthcare Finance. Lobbying Open Secrets. The Demise of Independent Pharmacies Christine Blank. Oct 17, 2019. Drug Topics. Paulina Firozi. Aug 23, 2018. The Washington Post. What Is a Formulary? Ana Gascon Ivey. May 19, 2020. GoodRx. Previous Delays in Rebate Regulation Paige Minemyer. Jan 29, 2021. Fierce Healthcare. Paige Minemyer. Jan 12, 2021. Fierce Healthcare. May 2019. Congressional Budget Office. The Gun Law Passage Process Office of the Clerk. May 18, 2022. U.S. House of Representatives. Tampa Bay Times Editorial Board. May 12, 2022. Miami Herald. Annie Karni. Apr 12, 2022. The New York Times. Background on Most Important Provisions Mary Katherine Wildeman. May 26, 2022. CT Insider. Jeffrey Pierre. May 26, 2022. NPR. The Dingleberry Erik Sherman. Jun 30, 2022. Forbes. Molly Rutherford. Jun 28, 2022. The Hill. Marty Schladen. Jun 22, 2022. Iowa Capital Dispatch. Poland Train Station Taylor Popielarz, Maureen McManus and Justin Tasolides. Mar 25, 2022. Spectrum News NY1. The Law and the Regulation U.S. Health and Human Services Department November 30, 2020 Audio Sources November 17, 2015 House Committee on the Judiciary Witnesses: Bradley J. Arthur, R.Ph., Owner, Black Rock Pharmacy David Balto, Law Offices of David A. Balto PLLC Amy Bricker, R.Ph. Vice President of Retail Contracting & Strategy, Express Scripts Natalie A. Pons, Senior Vice President and Assistant General Counsel, CVS Health Clips 53:48 Bradley Arthur: The Big Three PBMs control almost 80% of the entire market and these PBMs have the upper hand both in negotiating the contract with the payer, as well as strongly influencing the actual plan design itself. The PBM industry typically states that they can use their economic power to harness enhanced market efficiencies, but for whom? However, the staggering annual revenues that continue to grow each year of the big three suggests that these efficiencies are going directly to their corporations? bottom lines. Small community pharmacies like mine are faced on a daily basis with the impact of the PBMs? disproportionate market power. Community pharmacies routinely must agree to take-it-or-leave-it contracts from the PBMs just to continue to serve our long-standing patients. As if that weren't enough, the PBMs also directly set the reimbursement rates for pharmacies, the very same pharmacies that stand in direct competition of some of these PBM-owned mail-order and specialty pharmacies. Therefore, it comes as no surprise that the PBMs present employer and government payers with carefully tailored suggested plans designs that steer beneficiaries to these PBM-owned entities. January 29, 2019 Senate Committee on Finance Witnesses: Kathy Sego, Mother of a Child with Insulin-Dependent Diabetes Douglas Holtz-Eakin, Ph.D., President, American Action Forum Mark E. Miller, Ph.D., Vice President of Health Care, Laura and John Arnold Foundation Peter B. Bach, MD, MAPP, Director, Memorial Sloan Kettering Center for Health Policy and Outcomes Clips 1:57:30 Sen. John Cornyn (R - TX): Can anybody on the panel explain to me why we have a general prohibition against kickbacks ? they call them rebates ? under the Social Security Act, but we nevertheless allow it for prescription drug pricing? What's the sound public policy reason for excluding prescription drug pricing from the anti-kickback rule under federal law? Douglas Holtz-Eakin: I can't explain that and won?t pretend to. [laughter] Sen. Cornyn: I thought I was the only one who didn't understand the wisdom of that. Well, it's not a transparent arrangement and it does produce upward pressure on drug prices. And obviously, the negotiations between the PBM and the pharma in terms of what the net cost is, is not transparent, nor is it delivered to the consumer. Is it Dr. Miller? Dr. Bach? Peter Bach: It's delivered to the consumer indirectly through the reduction of the total cost of the benefit, but it is not delivered to the actual consumer using the drug, and that is a disassociation, that is a problem. Because it essentially reverses the structure of insurance. Lowering the total costs are people who use it the least, and raising the costs are people who use it the most, relative to if you allowed the rebate to be used at the point of sale, including all discounts. 1:59:49 Douglas Holtz-Eakin: If we had the negotiation be about the upfront price, so instead of a high list price and a rebate, you just negotiate a lower price, that would be the price that Ms. Sego would pay and insurance companies would look at that and say, okay, she's not paying as much as she used to, we're going to have to make up that money somewhere else and they might raise premiums. That means that people who don't have extreme insulin drug costs would pay a little bit more in a premium every month, and people who have extremely devastating medical conditions and high health care costs would get less costs. That's exactly what insurance is supposed to do. And so the rebate system is more than giving strange incentives on pricing. It's undercutting the purpose of insurance in general. February 26, 2019 Senate Committee on Finance Witnesses: Richard A. Gonzalez, Chairman and Chief Executive Officer, AbbVie Inc. Pascal Soriot, Executive Director and Chief Executive Officer, AstraZeneca Giovanni Caforio, M.D., Chairman of the Board and Chief Executive Officer, Bristol-Myers Squibb Co. Jennifer Taubert, Executive Vice President, Worldwide Chairman, Janssen Pharmaceuticals, Johnson & Johnson Kenneth C. Frazier, Chairman and Chief Executive Officer, Merck & Co., Inc. Albert Bourla, DVM, Ph.D., Chief Executive Office, Pfizer Olivier Brandicourt, M.D., Former Chief Executive Officer, Sanofi Clips 1:22:03 Albert Bourla: Adverse incentives that favor higher cost biologics are keeping biosimilars from reaching patients. In many cases, insurance companies declined to include lower cost biosimilars in their formularies because they would risk losing the rebates from covering higher cost medicines. I can't think of a more concerning example of a broken system and we need to do something about it. 1:33:35 Sen. Chuck Grassley (R - IA): So many of you have voiced support for the recent rebate rule proposed by the administration. Should the administration finalized this rule, will you commit to lowering your drug prices? Richard Gonzalez [CEO, AbbVie]: Mr. Chairman, we are supportive of the rule. We'd like to see it in its final form, obviously, to make a final decision, but we are supportive of taking the discount to the patient at the point of sale. Sen Grassley: Okay. AstraZeneca? **Pascal Soriot [CEO, AstraZeneca]**The same for us Senator, I would go one step further: if the rebates were removed from the commercial sector as well, we will definitely reduce our list prices. Sen Grassley: Okay. And Bristol? Giovanni Caforio [CEO, Bristol-Myers Squibb]: We have the same positions. Sen Grassley: Okay. Johnson and Johnson? Jennifer Taubert [EVP, J&J]: Yes, we're supportive, and that definitely would be my goal. We would just need to see the final legislation, provided that there aren't additional fees that are added into the system to compensate for the rebates. Sen Grassley: Merck? **Kenneth C. Frazier: I would expect that our prices would go down if we change the system. Again, on the commercial side as well as the Medicare side. Sen Grassley: Okay, Pfizer? Albert Bourla [CEO, Pfizer]: It is a very clear intention that we will not keep a single dollar from these rebates. We will try to move every single penny to the patients and we think if this goes also to the commercial plants that will be even better for more patients. Sen Grassley: Okay. Sanofi? Olivier Brandicourt [Former CEO, Sanofi]: Lowering list price has to be linked to better access and affordability at the counter for the patients. 1:35:20 Sen. Ron Wyden (D - OR): Is it correct that your company, and nobody else, sets the starting price for all drugs sold by Pfizer? Yes or no? Albert Bourla: It is a negotiation with PBMs and they are very powerful. Sen. Wyden: But you still get to set the list price? Albert Bourla: Yes, but we set this price and the rebate limit(?). 1:35:40 Sen. Ron Wyden (D - OR): Is it correct, when a hypothetical patient, let's call her Mrs. Jones, goes to pay for her drug at the pharmacy counter, her coinsurance is based on the price of the drug you set? Albert Bourla: It is correct in many cases. Sen. Wyden: Okay. I just want you all to know that the number one reason consumers are getting hammered, is because these list prices, which you have the last word with respect to where they are, are unaffordable. And the high prices are tied to what the consumer pays at the pharmacy counter. And all this other stuff you talk about, the rebates and the discounts and the coupons, all this other stuff is window dressing, all of that. And the fact is on Part D, 40% of the drugs don't even have a rebate. So I want it understood, particularly because I've asked you, Mr. Borla, I think you and others in the industry are stonewalling on the key issue, which is actually lowering list prices. And reducing those list prices are the easiest way for American consumers to pay less at the pharmacy counter. 2:12:45 Sen. Thomas Carper (D-DE): First is eliminating rebates to PBMs. That's the first one, eliminating rebates to PBMs. The second is value based arrangements. And the third is increasing transparency industry-wide on how you set your prices. 2:13:20 Richard Gonzalez: We clearly support providing the discount at the patient level, eliminating rebates essentially. 2:14:10 Pascal Soriot: If the rebates, as I said earlier, were to be removed from Part D and the commercial sector, we would actually reduce our list prices. 2:15:10 Giovanni Caforio: I would say that not only do we support all three elements that you mentioned, but I do believe those three elements together with the continued effort to develop a generic and biosimilar market would mean significant change, and would clearly alleviate the concerns that patients have today. 2:14:44 Jennifer Taubert: We are very supportive of all three elements that you outlined 2:15:52 Kenneth Frazier: We too support all three. 2:15:55 Albert Bourla: All three elements are transformational for our industry, will disrupt it. However, we do agree that these are the three things that need to be done and also I believe that will have significant meaningful results if we do. 2:16:10 Olivier Brandicourt: We support the three Senator, but we want to keep in mind at the end of the chain the patient has to benefit, so if rebates are removed it has to be to the benefit of patients. Sen. Thomas Carper (D-DE): Good, thanks. 2:18:10 Albert Bourla: 50% of the American people are in commercial plans and these rebate rules apply to Medicare. If the rules apply to all, definitely the list price will go down. 2:18:30 Albert Bourla: The list price is not irrelevant, it's very relevant for a lot of people because they have to pay list price during the deductible period. However if the rebate rule is applied, then they become irrelevant because the patients will not be paying the list price at the purchase point. 2:19:10 Sen. John Thune (R-SD): How would manufacturers respond if the rebate rule were finalized for government programs? I mean, what does that what does that mean for the commercial market? Albert Bourla: Senator, as I said before, all these proposals that they're discussing, [undistinguishable], eliminating the rebate rule, are transformational and will disrupt the way we do business. I don't know exactly how the system will evolve, and I really don't favor a bifurcated system. I would like to have a transparent single system across both parts. So we need to see how the whole thing will evolve. 2:25:26 Johnny Isakson (R-GA): Who sets the discount and who sets the rebate? 2:26:20 Richard Gonzalez: We negotiate with payers, so managed care and PBMs? Sen. Johnny Isakson (R-GA): You?re a supplier though, so you have to go negotiate with the PBMs and those people, is that right? Richard Gonzalez: Correct, and they negotiate aggressively. Sen. Isakson: Is that pretty much true with everybody, that they're the major component between the end retail consumer price and the origin of the product? Richard Gonzalez: Yes, Senator. Sen. Isakson: Well, that seems like that's someplace we ought to focus, because that's where the distorted numbers come in. Johnson & Johnson, Janssen, in your testimony, you talked about your average list price of 8.1%, up, but an average net price change of only 4.6%. So while your gross went up 8.6, your net went down 4.6 In the same pricing period. How does that happen? If you're setting the price, how does it not go up on the bottom? Jennifer Taubert: Yeah, and in fact, in 2018, our net price actually declined 8.6%, so even more than that. The intermediaries in the system are very, very effective negotiators? Sen. Isakson: Tell me who the intermediaries are. Jennifer Taubert: Those would be the PBMs and the insurers. Sen. Isakson: ?and the insurance companies? Jennifer Taubert: Right, and they set the formularies for patients. Sen. Isakson: And they're not the same. They're two different people? Jennifer Taubert: Yes, correct. 2:40:45 James Lankford (R-OK): All of you have mentioned the rebate issue has been a problem and that insurance companies and PBMs are very effective negotiators. Part of the challenge of this is, health insurance companies pay their PBM based on the quality of their negotiation skills, cutting a price off the list price. And so if a list price is higher and a rebate is higher, that also gives preference to them. So the difficulty is, as you raise list price, and the rebate gets larger, the insurance company gives that preference, making it harder for biosimilars. Am I tracking this correctly? 2:43:00 Albert Bourla: Here in the US, the penetration of biosimilars is much lower than in other places, but it is disproportional to different parts of the US healthcare system. For example, in open systems, systems where the decision maker it is a PBM, the one biosimilar we have has a market share of 5% in the US. In closed systems, in systems like Kaiser, for example, integrated healthcare systems where the one who decides has the whole cost of the healthcare system in its interest, we have 73%. 5% and 73% for the same product. I agree with what Mr. Fraser said that we need to create incentives, but I would add also that we need to break this rebate trap that creates significant disincentives for providers, and the healthcare system, and insurance companies. 3:19:25 Kenneth Frazier: If you went back a few years ago, when we negotiated to get our drugs on formulary, our goal was to have the lowest copay by patients. Today the goal is to pay into the supply chain the biggest rebate, and so that actually puts the patient at a disadvantage since they're the only ones that are paying a portion of the list price. The list price is actually working against the patient. 3:19:50 Sen. Steve Daines (R-MT): Why do we have a system today? Where you all are setting, I'll just say very, very high list prices, which is the starting point for negotiation. Why? Olivier Brandicourt: Senator, we're trying to get formulary position. With those list prices. High list price, high rebates. It's a preferred position. Unfortunately the preferred position doesn't automatically ensure affordability at the end. Kenneth C. Frazier: Senator, If you bring a product to the market with a low list price in this system, you get punished financially and you get no uptake because everyone in the supply chain makes money as a result of a higher list price. April 9, 2019 Senate Committee on Finance Witnesses: Steve Miller, MD, Former Executive Vice President and Chief Clinical Officer, Cigna Corporation Derica Rice, Former Executive Vice President and President, CVS Health and CVS Caremark William Fleming, Pharm.D., Segment President, Healthcare Services, Humana Inc. John Prince, Chief Executive Officer, OptumRx Mike Kolar, JD, Interim President & CEO, Senior Vice President and General Counsel, Prime Therapeutics LLC Clips Sen. Ron Wyden (D - OR): Pharmaceutical Benefit Managers first showed up decades ago, back when prescription drugs were being utilized more extensively. The PBMs told the insurance companies, ?we're the ones who know drug pricing, we will handle the negotiations for you.? But there is little evidence that the pharmaceutical benefit managers have actually held down the prices in a meaningful way. In fact, most of the evidence shows just the opposite. Pharmaceutical Benefit Managers actually make more money when they pick a higher price drug over a lower price drug. Colleagues, let's remember that all the way through this discussion, benefit managers make more money when they pick a higher price drug over a lower price drug. The logic on this isn't exactly complicated, graduate-level economics. PBM profits are based on taking their slice of the prescription-drug pie. More expensive drugs means there's a bigger pie. When there's a bigger pie, [there are] bigger slices for the pharmaceutical benefit managers. 50:24 Mike Kolar: Rebates and the role they play have been key areas of focus in the drug cost debate. In our view, rebates are a powerful tool to offset high prices, which are set by pharmaceutical companies, and pharmaceutical companies alone. The fact that rebates are not offered on many of the highest cost drugs, and that studies show no correlation between prices and rebates underscore that rebates are a key to mitigating rather than causing high drug prices. We pass rebates through fully to our plans, and we believe our plans should be able to choose how to apply these rebates in ways that best serve their members and market needs by balancing premiums and cost sharing. 56:05 Sen. Chuck Grassley (R-IA): I'd like to talk about consolidation, including the recent integration of PBMs with insurance companies. Last year I wrote to the Justice Department on the issues, it reported that the three largest PBMs who are before us today now covers 71% of Medicaid, Medicare Part D enrollees and 86% of standalone Drug Plan enrollees. 57:45 Derica Rice: This is a highly competitive space. In addition to the three that you've pointed out here, CMS has noted there are over 60 PBMs across the US. Therefore, the competition, there's many options for the employers that are out there, government entities, as well as unions to choose from given their specific needs. 1:10:35 Sen. Debbie Stabenow (D-MI): So when we look at Express Scripts has 100 million Americans covered, CVS 90 million, OptumRx 65 million, Prime Therapeutics 27 million, Humana 21 million, and yet Americans still pay the highest prices in the world. Even though you are negotiating for millions of people. The VA has its own pharmacy benefit manager service, they negotiate for 9 million veterans, and they pay, on average, 40% less for the same drugs that the rest of the healthcare system pays for. Despite greater volume, you are unable to secure these kinds of low prices. With all due respect, you guys are pretty bad negotiators. Given the fact that the VA can get 40% less. And so I'd like to know from each of you why that's the case. Dr. Miller? Steve Miller [Former EVP and Chief Clinical Officer, Cigna Corporation]: Yes. Part of the equation is giving patients choice. At the VA, they actually limit their formulary more than any of us at this table do. So oftentimes, they'll have one beta blocker, one ace inhibitor. And so if it's going to get to that level of choice, then we could get better prices also. Sen. Stabenow: Let me jump in, in the interest of time. I know you create nationwide drug formularies, you have pre-authorization, you give preferred status to certain medications. So you don't use any of those tools that the VA is using? Because you do. Steve Miller: We definitely use those tools, but we also give people choice. It's crucial for both physicians and patients to have the choice of the products they want to be able to access. Many of our plans want us to have broad formularies and when you have more products, it means you move less market share. Sen. Stabenow: So basically you?re saying a 40% premium gives them more choice. 1:24:30 Sherrod Brown (D-OH): If the administration's rebate rule were finalized as proposed, would you in some way be required to change the way you do business? Mike Kolar: Yes, Senator we would. John Prince: Yes. William Fleming: Yes. Derica Rice: Yes. Steve Miller: Yes. Sen. Brown: Thank you. 1:25:05 Sherrod Brown (D-OH): What percentage of prescriptions that you fill across Part D actually receive a rebate? Roughly what percentage? Mike Kolar: So Senator, approximately 8% of the prescriptions that we cover in Part D are associated with a rebate. Sen. Brown: Okay, Mr. Prince? John Prince: Senator, I don?t know the exact number, I know our overall business is about 7%. Sen. Brown: Okay, thank you. William Fleming: About 7-8%. Derica Rice: Senator, I do not know the exact number but we pass through 100% of all rebates and discounts. Sen. Brown: [Grunt] Steve Miller: 90% of the prescriptions will be generic. Of the 10% that are branded, about two-thirds have rebates. So it's about seven-- Sen. Brown: 7-8% like the others. Okay. To recap, PBMs do not set drug prices. Forcing you to change the way you do business -- as the administration's rule would ? will not change that fact. And while the rule might impact a small percentage of drugs and Part D that receive a rebate, it does nothing to lower costs, as your answer suggests, for the other 90% of prescriptions you fill. Most importantly, absolutely nothing in the proposed rule would require Secretary Azar?s former employer or any other pharma company to lower the price of insulin or any other drug. It's important to establish that, so thank you for that. 1:41:40 Catherine Cortez Masto (D-NV): Let me ask you, Dr. Fleming, in your testimony, you say Humana?s analysis of the rebate rule -- and we're talking about the administration's rebate rule now ? found that approximately 17% of beneficiaries will see savings at the pharmacy counter as a result of this rule. Can you tell me a little bit more about who these people are? And what kind of conditions do they have? William Fleming: Senator, there will be a number of members who are taking brand drugs for which we get rebates and so it could vary all the way from the common chronic conditions, things like diabetes or hypertension or high cholesterol, all the way over to occasionally, not usually, but occasionally on the specialty drug side. When you think of some medications like treatments for rheumatoid arthritis, multiple sclerosis, places where there's competition. 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2022-07-17
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CD254: Baby Formula Shortage

After multiple formula-related infant deaths were reported to the FDA in February, samples from Abbott Laboratories' Sturgis, Michigan baby formula production facility tested positive for cronobacter, triggering a recall and a subsequent formula shortage. In this episode, Jen uncovers monopoly and neglect in the baby formula production industry, lack of oversight by the FDA, and the United States' refusal to adopt the World Health Organization's International Code of Marketing of Breast-Milk Substitutes. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Formula Shortage Abbott. Jun 15, 2022. May 26, 2022. U.S. Senate. Center for Food Safety and Applied Nutrition. May 18, 2022. U.S. Food and Drug Administration. Annie Gasparro and Jaewon Kang. May 12, 2022. The Wall Street Journal. U.S. Food and Drug Administration. Feb 2022. Baby Formula Monopoly Matt Stoller. May 13, 2022. BIG by Matt Stoler on Substack. Sam Knight. Apr 23, 2022. Truthout. FDA Failure March 24, 2022. U.S. House of Representatives. Poisoned Baby Food House Committee on Oversight and Reform, Subcommittee on Economic and Consumer Policy Staff. Feb 4, 2021. Operation Fly Formula Brenda Goodman and Deidre McPhillips. Jun 10, 2022. CNN. The White House. May 22, 2022. White House Briefing Room: Statements and Releases. 60 minutes Segment Bill Whitaker. May 22, 2022. 60 Minutes. The WHO Code and Formula Marketing The World Health Organization. Apr 28, 2022. The World Health Organization. Apr 28, 2022. The World Health Organization. La Leche League International. Bonnie Goldstein. Jul 13, 2018. Project on Government Oversight. The World Health Organization. Jan 27, 1981. Fisher-Price Update Katie Porter [@RepKatiePorter]. Jun 15, 2022. Twitter. Laws Audio Sources May 26, 2022 Senate Committee on Health, Education, Labor, and Pensions The committee concluded a hearing to examine the infant formula crisis, focusing on addressing the shortage and getting formula on shelves. Witnesses: Robert M. Califf, Commissioner of Food and Drugs, Food and Drug Administration Clips 37:26 Dr. Robert Califf: Frankly, the inspection results were shocking. Standing water, cracks in key equipment that presented the potential for bacterial contamination to persist, particularly in the presence of moisture, leaks in the roof, a previous citation of inadequate hand washing and current poor foot sanitation, bacteria growing from multiple sides, and many signs of a disappointing lack of attention to the culture of safety in this product that is so essential to the lives of our most precious people. 38:14 Dr. Robert Califf: As soon as we receive positive cronobacter results from environmental samples at the facility that we collected during the inspection, we contacted Abbott to ask the company to issue a voluntary recall. The need to take urgent action to protect the most vulnerable of all of our people -- infants -- presented a dilemma. This was the largest plant of the dominant manufacturer, and it was the sole source of a number of metabolic formulas essential for viability of infants with no substitution possible, because Abbott had no backup plan. We knew that ceasing plant operations would create supply problems, but we had no choice given the unsanitary conditions. 50:50 Sen. Richard Burr (R-NC): Why haven't you waived labeling requirements from trusted manufacturers in countries like the UK, Australia or Canada? Couldn't manufacturers provide temporary labels on imported formula? Cans if the label is printed in a language other than English until US manufacturing is restored? Some countries have higher nutritional requirements. Why can't we provide a waiver for their products to come into the country? Dr. Robert Califf: We've waived many of the requirements that are the ones that make sense, but the directions have to be clear to Americans in language that's understandable so the formula can be mixed correctly. An error in mixing up the formula for example, can lead to a very sick infant not getting the right nutrition. 2:16:18 Dr. Robert Califf: We saw the lack of quality in the system and the lack of accountability for the problems that were there. And so we had to invoke the Justice Department to negotiate a consent decree, which is essentially Abbott saying, ?Yes, we had all these problems. Here's exactly what we're going to do to fix them.? For legal reasons, I can't discuss the exact details of the negotiation, but let's just say that it took a little armwrestling to get to the point where the Justice Department got Abbott to sign the consent decree. May 25, 2022 Committee on Energy and Commerce: Subcommittee on Oversight and Investigations Witnesses: Robert M. Califf, Commissioner, Food and Drug Administration Frank Yiannas, Deputy Commissioner, Food Policy and Response, Food and Drug Administration Susan Mayne, Director, Center for Food Safety and Applied Nutrition, Food and Drug Administration Chris Calamari, Senior Vice President of U.S. Nutrition, Abbott Robert Cleveland, Senior Vice President of the Nutrition Business Unit for the US and Europe, Mead Johnson Nutrition Scott Fitz, Vice President of Technical and Production, Gerber Clips 41:55 Robert Califf: Because of the lack of the diversification of this market in the absence of a central hub for integrating supply chains, we concluded early on that getting the Sturgis facility up and running safely was a top priority. But we had no confidence in the integrity of the Abbott quality program at this facility. Accordingly, we initiated proceedings toward a consent decree, which requires Abbott to undertake steps to assure safe production of formula, including hiring an outside expert with reporting to FDA. 43:03 Robert Califf: Despite the overall numbers showing diminished but steady supply, we knew that distribution was an issue. Some areas were experiencing significant shortages, but overall, there was enough formula to go around. About a month ago, the reports of shortages on the shelf proliferated, although there was not a drop in production. This increase in consumption most likely represents heightened concern of parents and caregivers about shortages, leading to an understandable effort to purchase ahead to ensure adequate supply at home. This type of cycle has happened with other products throughout the pandemic, and we realize that the only solution is to have adequate supply to make sure shelves are stocked. 45:57 Robert Califf: Abbott's enormous market share left it with a responsibility for producing safe infant formula that was not met. We will do everything in our power to work with Abbott to make this happen as quickly and as safely possible, but this timing is an Abbott's control. 46:35 Robert Califf: Across the industry we regulate, we are seeing evidence that the just-in-time distribution system, market concentration, and sole-source contracting are leading to shortages. Multiple reports to Congress call for improved supply chain management. Until regulatory agencies have digital access to critical supply chain information and personnel to do the work, we will continue to react to supply chain disruptions rather than intervening to prevent them. 1:01:113 Robert Califf: It?s really important for people to go to the HHS website: hhs.gov/formula. There you'll find the hotline for all the manufacturers and helpful information about where to go. 1:04:12 Robert Califf: You would be surprised to know there's no just-in-time system where all the FDA employees can see what's going on. What we really need is access to the information that the manufacturers have about each of their individual supply chains. They each have their individual supply chains, but there is no national system to make sure the supplies getting where it needs to go. 1:05:11 Rep. Cathy McMorris Rodgers (R-WA): Did FDA not have a data analytics tool to monitor the supply chains of various products, including infant formula? Robert Califf: We requested funding for a tool and because we didn't get the funding, we cobbled it together. It's a start, but it's nowhere near ? you know, again, I was at Google for five years. The technology at FDA, and in many federal agencies is outmoded and needs an upfit, there's just no question about. 1:07:33 Susan Mayne: We have been in discussion with infant formula manufacturers throughout COVID, but discussion is not the same thing as data and we do not have the authorities to demand data from the companies to get necessarily all the information that you would want to have to really monitor the supply chains as Dr. Califf indicated. 1:10:30 Robert Califf: But given what we saw, the only way we could have confidence was through a consent decree, where we literally have oversight of every single step. When we met with the CEO yesterday, there were hundreds of steps that they went through that they're having to do, many of which have already been done. So it's only if we have direct oversight over it that I would have confidence, but I do have confidence that we are seeing every single step both physically in-person, and also through following the documentation and the outside expert. 1:10:53 Rep. David B. McKinley (R-WV): How will the passage of last week's FDA Bill increase the production of baby formula? Robert Califf: Production is increasing already ? Rep. David McKinley The criticism, that they said that on these various tweets ? it was not just one there were several ? that said it was unnecessary. So I want to know, how do we increase, how do we get back to production? How to put in $28 million? How would that how's that gonna increase production? Robert Califf: Well, remember, the Abbot plant needs to get up and running, we?ve got to oversee and micro detail to make sure that it's done correctly. And as we bring in supply from other countries, remember, we already have overseas plants that we import from on a regular basis, almost double digits. So as we bring that product in, we?ve got to inspect it, make sure it's of the quality that we expect in America of formula and we need to upgrade our information systems, as I've already said, to make sure that as all this goes on, we can keep track of it and make sure that we're coordinated. 1:44:55 Rep. Kim Schrier (D-WA): Is there any early warning system for products like baby formula? And not just the ingredients but for formula itself or manufacturer would let you know if they're running short or anticipate a shortage? Robert Califf: First of all, let me thank you for being a pediatrician. I sometimes call the Academy of Pediatrics just for the positive vibes that you all exude as a profession. But no, there is not such a warning system. We've repeatedly asked for that authority and have not been granted it. The industry by and large has opposed it. 1:52:21 Susan Mayne: What the data show is, we can't rule in or rule out whether or not those infants, their cronobacter was caused by this plant. The data just simply can't be used to inform it. Rep. John Joyce (R-PA): But the genetic testing you did. It does not match from the plant, correct? Susan Mayne: That is correct. But what we did not have is any sampling done at the same time that the product was manufactured that was consumed by the individuals who got sick, so we didn't have that every director 2:08:57 Rep. Ann Kuster (D-NH): I know that in this part of the country, I'm in New Hampshire, we have milk banks of mother's breast milk. And I'm wondering what is the regulation by the FDA? And can we assure our constituents that breast milk from milk bank is safe and is thoroughly vetted by the FDA? Robert Califf: You're asking some very good questions. I'm gonna refer this to Dr. Mayne who probably would have the best answer. Susan Mayne: Thank you, Congresswoman. So human breast milk is regulated as a food. And so that is reassuring and they have to have proper screening protocols and things like that in place to make sure that the donors that are donating the milk, get that, that's critical for human food safety. So that's how I would respond. Thank you. 2:26:28 Robert Califf: You would think that a critical industry like this would have resilience plans, redundancy, but we don't even have legal authority right now to require that the firms have a plan for potential failures and resilience. That?s something we've asked Congress for every year for a while, and we're asking for it again. So I hope that it happens this time. I'd also add that this is not unique to this industry. We are seeing this across the entire device and medical supply industry with frequent failures as exemplified by the 60 minutes show and the contrast medium problem that I talked about. We have gone to a just-in-time, large single source contracts that lead to lack of diversification in the industry and the industry has fought us tooth and nail on requiring that there be insight into their supply chains, so that the sum of all of the industries leads to the the avoidance of preemption. We'd like to be able to stress test and prevent these things from happening rather than waiting until they happen, and then scrambling. 2:58:58 Susan Mayne: What we've seen is, first the strain of the COVID 19 pandemic, then the strain of the recall, and now we've got the Russia-Ukraine conflict. And one of the things that we know is the Ukraine region is one of the world's biggest exporters of products like sunflower oil. Sunflower oil is used as an ingredient in many food products, including infant formula. And so we have been working with the manufacturers should they be unable to maintain their supply of sunflower oil, what they would replace it with and make sure that that would meet the nutritional requirements for infant formula. 3:26:28 Chris Calamari: We plan to start production at Sturgis the first week of June. We will begin with the production of EleCare, before turning to the production of other formulas and Similac. From restart, we estimate that it will take six to eight weeks before product is available on shelves. 4:28:51 Rep. Paul Tonko (D-NY): Your testimony also mentions global supply chain challenges as a factor the company has had to contend with. What, if any, steps has Gerber taken to maintain its production and distribution supply? Scott Fitz: Thank you for the question. Certainly, our industry is not immune to the global supply chain challenges brought on by the pandemic. We struggled with materials supply issues, intermittent materials supply issues, whether it be ingredients or packaging components, we struggled struggled with the material quality issues related to the pandemic, we've had transportation and logistics issues, just getting trucks and truck drivers available to move the products and supplies that we need. And we've had COVID related labor challenges and higher turnover than normal are all things that have impacted us. Through the course of the pandemic though we've we've resolved these on an ongoing basis, one at a time as they've come up. We are putting trying to put in more robust business continuity plans in place for critical components and ones that we know we will have challenges with in the future. 4:30:50 Rep. Paul Tonko (D-NY): Did you not think the FDA should be notified or at least aware of your struggle? Scott Fitz: Should FDA be aware of our struggle? Rep. Tonko: Yeah, should you have shared those concerns for supply chain? Scott Fitz: If it could help, we would certainly be willing to do that. Yes. Rep. Tonko: What should you have told us during the last year? Scott Fitz: Well, as I testified, the issues that have come up for us, we've been able to resolve. Through the last six months our in-stock rates have averaged 86%. 4:35:55 Chris Calamari: On the horizon, we see in the manufacture of infant formula agricultural oils are absolutely essential, paper is absolutely essential, the cost of fuel to supply and distribute the product is essential. So I would call out those key elements ranging from agricultural oils to the cost to deliver the product would be the biggest areas of focus. 4:41:42 Robert Cleveland: We reached out and spoke to the USDA almost immediately seeking flexibility, for example in the size format. And while that sounds small, it's very significant because what that means is the WIC consumer doesn't have to look for one particular size of product at the shelf. They can find any size of the shelf to fulfill their their benefits with and that's allowed us to continue production and step up to meet the requirements of those consumers. We've since worked with the USDA to find a number of other ways to flexibly administer the program, because really, the focus for the WIC consumer is the same as the others, making sure she has safe access to formula and doesn't have to compete with non-WIC consumers to get it. So the more sizes, the more formats, the more manufacturers that the program can support, the more likely she is to have her needs met. 4:47:35 Rep. Kim Schrier (D-WA): The baby formula industry in our country is really unique in that about 90% of the product is made right here in the United States. And the vast majority is made by your three companies [Abbott, Gerber, and Mead Johnson]. And so it should be no surprise that when something goes wrong, like what happened in Sturgis, it really rocks the whole industry and the facility in Sturgis is responsible for 40% of Abbott's formula on the market and makes up about 20% of the total formula on the market in the US, and that is really significant, especially when this year Similac has the contract with WIC. 5:10:40 Rep. Buddy Carter (R-GA): Okay, the supply chain issues, is that because some of the ingredients were coming from other countries? Chris Calamari: Representative, yes, so global supply chains are such that we have ingredients coming from global sources and that is the nature of our supply chain. 5:19:29 Rep. Diana DeGette (D-CO): Let's say my daughter, who has a six-week-old baby, called me up and said, ?I need to get some formula for my baby. And my store shelves are bare.? What can we tell them between now and all of the emergency measures we put into place to start putting formula on the shelves? Who should they call? Where can they go to try to get some of this limited product right now? What's the practical suggestion? Robert Cleveland: It's very unfortunate that you have to answer that question or ask that question, but let me do my best to answer it. I think the shelves ? the reality is they don't have anywhere near the product that they do. So one of the things I've often said during this crisis is it takes a village to raise a child. In this case, sometimes it's taking a village to find infant formula. So the first thing to do is work with your network of family and friends, and as they go to the stores, look for the product that's there. And I've seen many mothers and grandmothers and fathers and cousins doing this on the shelf. You can call our Consumer Response Center. Now to be fair, those folks are doing a phenomenal job of fielding waves and waves of calls. But we will help you if you call. That's one other resource. The physician's office is another. Sometimes they do have the samples that are required, and they can help transition between finding product on the shelf. And then I would be sure to look online as well as in-person at the store and be open to other formats. Many mothers and fathers have a particular type of format they like. You may need to be more flexible in the format that you use. But all infant formula regulated by the FDA is safe for your infant, whether it's a liquid or a powder or what size it's in. And so I would say shop widely. See your doctor or enroll your family friends, give us a call if you need to, and be flexible. May 25, 2022 Committee on Appropriations: Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Witnesses: Ginger Carney, Director of Clinical Nutrition, St. Jude Children?s Research Hospital Sarah Chamberlin, Executive Director, National PKU News Michael Gay, Owner and Manager, Food Fresh Brian Ronholm, Director of Food Policy, Consumer Reports Linkedin Clips 32:29 Michael Gay: WIC?s rigid rules have made it difficult for the program to be responsive to critical shortages throughout the pandemic and now during the formula crisis. Substitutions may be easily available when situations like this arise. The emergency waivers instituted by the USDA during the pandemic have provided flexibility in some states, but those waivers were only available because of the pandemic. To prevent this issue from happening in the future, Congress should allow WIC vendors operating during severe supply shortages, disasters or public health emergencies to automatically substitute limited WIC approved products impacted by supply chain disruptions. The USDA should direct states to include product substitutions for WIC in their emergency preparedness plan. These changes would have allowed families to immediately switch to another formula in states with shortages allowing for smooth continuation of feeding infants. 33:27 Michael Gay: Secondly, there's a significant need for USDA to examine the long term effects of cost containment, competitiveness and peer grouping formulas for WIC vendors. States operate a peer group system to monitor vendor prices and determine reimbursements are cost competitive. These cost containment measures have led to reduced retail embursement and reduced retailer participation in the program, leading to fewer locations for families to access formula. 33:55 Michael Gay: WIC infant formula cost containment measures have led to extreme consolidation in the formula marketplace, leaving it highly vulnerable to supply disruptions like we are experiencing now. These contracting policies must be reviewed to ensure future food security of the nation's babies and families. 41:50 Brian Ronholm: The evidence suggests that the agency was too slow to act, failed to take this issue seriously, and was not forthcoming with information to parents and caregivers. The infant formula crisis exposed a greater structure and culture problem that has long existed FDA. This was merely one symptom of the overall problem, and it is clear that confidence in the food program at the FDA is eroding. A big reason for this is the food program has second class status within FDA, and it's resulted in serious problems. The FDA also lacks a single, full-time, fully empowered expert leader of all aspects of the food program. As you know, in recent decades, most FDA commissioners have been medical specialists who naturally focus on the programs impacting medical products. This is certainly warranted considering the impact these programs have on public health. And the pandemic is a perfect example of this. However, this usually results in intense competition for the commissioner?s time and support and focus on the food program is typically what has suffered under this dynamic. It has become impossible for an FDA commissioner to possess the bandwidth to provide leadership and accountability to a set of offices that regulates 80% of our food supply. 51:45 Ginger Carney: I would want to warn parents not to make homemade formulas ? the American Academy of Pediatrics warns against that ? they should not dilute the formula, as both of these situations can lead to disastrous results and lead possibly to hospital admissions. 56:40 Brian Ronholm: Splitting out the food safety functions of the agency as it exists now and creating separate agencies while still remaining under the HHS umbrella would be an effective approach that would get to the issues that I think everyone has become aware of during this crisis. 59:32 Rep. Rosa DeLauro (D-CT): We now have 15 agencies at the federal level who deal with some form of food safety, the principal ones are USDA and FDA. It should be one single agency! 1:06:30 Michael Gay: In a rural area such as ours, probably 85-90% of my formula is WIC formula, which is just down to one type of formula. So even like today, for example, or my truck Monday, I got about 20 cases of Gerber formula in a different variety, but that's not approved on what and the Georgia WIC office just approved some substitutions for formulas that were, you know, prescribed by the doctor with the contract formula. So therein lies the problem is there's no easy way to substitute that for the customer. 1:23:29 Brian Ronholm: Four companies that control 90% of the market and only three of them actually bid on WIC rebate contracts. Abbott is by far the largest one and I believe they have contracts in 30 or 31 states, I think it was the latest figure. So when those contracts come up, these companies submit based on their ability to meet the demand in a particular state, and Abbott is usually the only one that's big enough to do that. We mentioned that they have a large part of the market, I think when it comes to the WIC market, they have approximately 55 to 60% of the WIC market. So that's a significant size of the market that it really needs to be examined so when situations like this hit, how does it impact that particular?.And it's obviously going to have a bigger impact because these companies use the WIC market to get into the overall non-WIC market to even increase the share of their market, so that creates further shortage problems. 1:40:35 Ginger Carney: One thing that we really haven't talked about is the WHO code for marketing breast milk substitutes. And that's what these formulas are, they?re breast milk substitutes. So if we look at the WHO code in other countries, other developed countries are abiding by the WHO code and this gives guidelines for how companies can market their infant formulas in a safe way. So maybe we should go back to that and think about what is it about the WHO code that would benefit all of our families in the country so that they are assured when they do have to reach for infant formula when breastfeeding cannot be an option or will not be an option? What are the things that are marketed directly to our families that tell them about the formula? 1:44:20 Rep. Debbie Wasserman Schultz (D-FL): Half of all US formula consumption goes through the WIC program, which provides free infant formula as we've been talking about today, where states negotiate bulk discounts in exchange for market exclusivity. Now, I'll take you back to 1989 when Republican President George Bush enacted legislation requiring all state WIC programs to use competitive bidding for the purchase of infant formula. In practice, this means that the state of Florida for example is required to use a single supplier for the entire state supply of WIC baby formula. The competitive bidding process has yielded $1.3 billion to $2 billion a year in savings and allowing WIC to serve about 2 million more participants annually because of the discounts. However, when there's a supply shock caused by one of the four market participants, like what happened with Abbott in this case, it creates a serious risk to infant health across the country. 1:48:00 Rep. Debbie Wasserman Schultz (D-FL): We know that in Europe, they consistently produce a baby formula surplus. But there are rigid labeling and nutritional requirements for formula containers here in the US that the FDA requires and they prohibit the sale of many European-made products, even though the formulas themselves meet FDA nutritional and purity standards. So what sort of policy changes would you like to see undertaken to ease restrictions on baby formula imports, while still ensuring that the product meets our safety standards? Brian Ronholm: Yeah, I think it's critical that we maintain those safety standards that FDA has set on infant formula, that's absolutely critical. There's a comfort level with consumers when they're able to purchase something that they know is an FDA inspected facility overseas. But to your point, sometimes these regulations, these really strict regulations are thinly disguised trade protection measures. And so you know, that's certainly an issue that we'd have to examine carefully to make sure that we can have that access. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-06-26
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CD253: Escalation of War

Since the Russian invasion of Ukraine began, Congress has signed four laws that send enormous amounts of money and weapons to Ukraine, attempting to punish Russia for President Putin?s invasion. In this episode, we examine these laws to find out where our money will actually go and attempt to understand the shifting goals of the Biden administration. The big picture, as it?s being explained to Congress, differs from what we?re being sold. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Content Ukraine and Russia Syria World Trade System Russian Blockade Shane Harris. May 24, 2022. The Washington Post. NATO Expansion Jim Garamone. Jun 1, 2022. U.S. Department of Defense News. Matthew Lee. May 27, 2022. AP News. Ted Kemp. May 19, 2022. CNBC. U.S. Involvement in Ukraine Helene Cooper, Eric Schmitt and Julian E. Barnes. May 5, 2022. The New York Times. Julian E. Barnes, Helene Cooper and Eric Schmitt. May 4, 2022. The New York Times. Private Security Contractors Christopher Caldwell. May 31, 2022. The New York Times. Joaquin Sapien and Joshua Kaplan. May 27, 2022. ProPublica. H.R. 7691 Background How It Passed Glenn Greenwald. May 13, 2022. Glenn Greenwald on Substack. Catie Edmondson and Emily Cochrane. May 10, 2022. The New York Times. Republican Holdouts Glenn Greenwald and Anthony Tobin. May 24, 2022. Glenn Greenwald on Substack. Amy Cheng and Eugene Scott. May 13, 2022. The Washington Post. Morgan Watkins. May 13, 2022. USA Today. Stephen Semler. May 26, 2022. Jacobin. Biden Signs in South Korea Kate Sullivan. May 20, 2022. CNN. How Much Money, and Where Will It Go? Stephen Semler. May 23, 2022. Speaking Security on Substack. May 11 2022. Congressional Budget Office. Christina Arabia, Andrew Bowen, and Cory Welt. Updated Apr 29, 2022. Congressional Research Service. Legal Information Institute, Cornell School of Law. Representatives? Raytheon and Lockheed Martin Stocks Kimberly Leonard. May 19, 2022. Insider. Kimberly Leonard. Mar 21, 2022. Insider. Marjorie Taylor Green [@RepMTG]. Feb 24, 2022. Twitter. GovTrack. ?Rules Based Order? Anthony Dworkin. Sep 8, 2020. *The World Trade Organization Inequality.org Apr 23, 2007. NPR. Crimea Kenneth Rapoza. Mar 20, 2015. Forbes. March 16, 2014. BBC. Shifting Strategies Economic War Larry Elliott. Jun 2, 2022. The Guardian. Nigel Gould-Davies. May 12, 2022. The New York Times. Weapons Escalation Jake Johnson. Jun 1, 2022. Common Dreams. C. Todd Lopez. Jun 1, 2022. U.S. Department of Defense News. Greg Norman. Jun 1, 2022. Fox News. Christian Esch et al. May 30, 2022. Spiegel International. Alastair Gale. May 24, 2022. The Wall Street Journal. Mike Stone. Mar 11, 2022. Reuters. Secretary Austin and the Pentagon Jim Garamone. May 20, 2022. U.S. Department of Defense News. Natasha Bertrand et al. Apr 26, 2022. CNN. David Sanger. Apr 25, 2022. The New York Times. Mike Stone. Apr 12, 2022. Reuters. Glenn Greenwald. Dec 8, 2020. Glenn Greenwald on Substack. Democrats Still All In Marc Santora. May 1, 2022. The New York Times. RFE/RL's Ukrainian Service. May 1, 2022. Radio Free Europe/Radio Liberty. Mar 26, 2022. Sky News. The Laws Passed by Voice Vote in the Senate (amended the original House bill) (on original version) (final version) Audio Sources May 23, 2022 Clips Sen. Joe Manchin (D-WV): Speaking about Ukraine, first what Putin, Putin?s war on Ukraine and Ukraine's determination, resolving the sacrifices they've made for the cause of freedom has united the whole world, that it's united, US Senate and Congress, I think like nothing I've seen in my lifetime. I think we're totally committed to supporting Ukraine, in every way possible, as long as we have the rest of NATO and the free world helping. I think we're all in this together. And I am totally committed as one person to seeing Ukraine to the end with a win, not basically resolving in some type of a treaty. I don't think that is where we are and where we should be. Reporter: Can I just follow up and ask you what you mean by a win for Ukraine? ** Sen. Joe Manchin:** I mean, basically moving Putin back to Russia and hopefully getting rid of Putin. May 19, 2022 Committee on Foreign Affairs, Subcommittee on Asia, the Pacific, Central Asia, and Nonproliferation Witnesses: Charles Edel, Ph.D., Australia Chair and Senior Adviser, Center for Strategic and International Studies Bonny Lin, Ph.D., Director, China Power Project, Center for Strategic and International Studies Tanvi Madan, Ph.D.Director, The India Project, Brookings Institution Dan Blumenthal, Ph.D., Senior Fellow and Director of Asian Studies, American Enterprise Institute Clips 6:57 Tanvi Madan: One implication that is already evident, most visibly in Sri Lanka, is the adverse economic impact. The rise in commodity prices in particular has led to fiscal food and energy security concerns and these, in turn, could have political implications and could create a strategic vacuum. 7:15 Tanvi Madan: A separate and longer term economic impact of the crisis could be renewed goals, perhaps especially in India, for self reliance and building resilience not just against Chinese pressure, but also against Western sanctions. 7:28 Tanvi Madan: The second potential implication of the Russia-Ukraine war could be that Beijing might seek to take advantage in the Indo-Pacific while the world's focus is on Europe, between the Taiwan or the East or South China Sea contingencies. The contingency that would have the most direct impact in South Asia would be further action by the PLA at the China-India boundary, or at the Bhutan-China boundary that could draw in India. This potential for Sino-Indian crisis escalation has indeed shaped Delhi's response to the Russia-Ukraine war. Despite its recent diversification efforts, the Indian military continues to be dependent, if not over dependent, on Russia for supplies and spare parts for crucial frontline equipment. India has also been concerned about moving Moscow away from neutrality towards taking China's side. Nonetheless, there is simultaneously concern that Russia's war with Ukraine might, in any case, make Moscow more beholden to Beijing and also less able to supply India, and that will have implications for India's military readiness. 10:10 Tanvi Madan: The fourth implication in South Asia could flow from the war's effect on the Russia-China relationship flows. The Sino-Russian ties in recent years have benefited Pakistan. However, they have been of great concern to India. If China-Russia relations deepened further, it could lead to increased Indian concern about Russian reliability. And a Dheli that is concerned about Moscow's ability and willingness to supply India militarily or supported in international forums will seek alternative partners and suppliers a potential opportunity for the US as well as its allies and partners. 18:15 Bonny Lin: China has shifted its position on the Ukraine conflict to be less fully pro Russia. Xi Jinping has expressed that he is deeply grieved by the outbreak of war. China has engaged in diplomacy, called for a ceasefire, proposed a six point humanitarian initiative, and provided humanitarian aid to Ukraine. China's position on Ukraine, however, is far from neutral. China has not condemned Russia or called its aggression an evasion. Xi has yet to speak to President Zelenskyy. There is no evidence that China has sought to pressure Russia in any way or form. China has amplified Russian disinformation and pushed back against Western sanctions. To date, Beijing has not provided direct military support to Russia and has not engaged in systemic efforts to help Russia evade sanctions. However, China's ambassador to Russia has encouraged Chinese companies to quote "fill the void in the Russian market." 19:14 Bonny Lin: The Ukraine crisis has reinforced China's view that US military expansion could provoke conflict in the Indo-Pacific. Chinese interlocutors have voiced concern that the United States and NATO are fighting Russia today, but might fight China next. China views NATO expansion as one of the key causes of the Korean conflict and sees parallels between NATO activities in Europe and US efforts in the Indo-Pacific. Beijing is worried that increasing US and ally support for Taiwan and other regional allies and partners elevates the risk of US-China military confrontation. This pessimistic assessment is why Beijing will continue to stand by Russia as a close strategic partner. 19:56 Bonny Lin: The Ukraine crisis has reinforced and strengthened China's desire to be more self reliant. China is investing more to ensure the security of food, energy, and raw materials. Beijing is also seeking more resilient industrial supply chains, as well as PRC-led systems, including alternatives to Swift. At the same time, Beijing is likely to further cultivate dependencies on China, such that any potential Western led sanctions on China or international-community-led sanctions on China in the future will be painful to the West and difficult to sustain. 21:15 Bonny Lin: China has observed that Russia put its nuclear and strategic forces on high alert and NATO did not send conventional forces to Ukraine. This is leading China to question its nuclear policy and posture. 21:57 Bonny Lin: As Beijing watches the Western and particularly G7-led unity among advanced democracies, it is also seeing that a number of countries in the developing world are not joining in on the sanctions. As a result, Beijing has tried to increase its influence and in many ways building on Russian influence in developing regions. And Beijing is likely to try to get all that influence moving forward. 24:24 Dan Blumenthal: China took the opportunity of Russia's invasion on February 4 to lay out a document that criticizes, very specifically, almost all aspects of United States global policy. Very specifically, including Oculus for NATO enlargement to Oculus to the Indo Pacific strategy. It got Russia to sign up to Xi Jinping's theory that we're in a new era of geopolitics that will replace US leadership, that US leadership is faulty and it's dividing the world into blocks such as NATO, that NATO expansion is the problem, that Indo-Pacific strategy is the same thing as NATO expansion. 25:45 Dan Blumenthal: We should take very seriously what they say, particularly in Chinese, and what they're saying is very clearly pro-Russia and very clear, specific, searing critiques of the US-led world order. 26:47 Dan Blumenthal: And frankly, while the West is unified, and the US and the West and some of our Asian allies are unified, most of the rest of the world is not with us on this issue of China and Russia being these authoritarian, revisionist great powers, and that's a real problem. May 18, 2022 House Committee on Foreign Affairs: Subcommittee on the Middle East, North Africa, and Global Counterterrorism Witnesses: Dr. Hanna Notte, Senior Research Associate, Vienna Center for Disarmament and Non-Proliferation Dr. Frederic Wehrey, Senior Fellow, Carnegie Endowment for International Peace Caitlin Welsh, Director of the Global Food Security Program, Center for Strategic and International Studies Grant Rumley, Senior Fellow, The Washington Institute for Near East Policy Clips 12:55 Hanna Notte: First, Moscow's military presence in Syria has given it a buffer zone on its southern flank to counter perceived threats from within the region, but also to deter NATO outside the European theater. And second, Russia has turned to the region to diversify its economic relations with a focus on arms sales, civilian nuclear exports and wheat supplies. And in building influence, Russia has largely followed what I call a low cost high disruption approach, also using hybrid tactics such as private military companies and disinformation. Now, these Russian interests in the region will not fundamentally change with the invasion of Ukraine. Today, Russia's regional diplomacy remains highly active, aimed at offsetting the impact of Western sanctions and demonstrating that Moscow is not isolated internationally. 14:09 Hanna Notte: Starting with arms control and Non-Proliferation, though Moscow seemed intent on spoiling negotiations to restore the JCPOA in early March. It subsequently dropped demands for written guarantees that its cooperation with Iran would not be hindered by sanctions imposed over Ukraine. But still, I think the geopolitical situation might make Moscow less willing to help finalize a nuclear deal. As in the past, Russia is also unlikely to support any US efforts to curb Iran's use of missiles and proxies in the region, because essentially, Iran's regional strategy pins down us resources while elevating Russia as a regional mediator, which serves Russian interests well. 15:17 Hanna Notte: Just a few words on Syria. Security Council resolution 2585 on the provision of humanitarian aid to northwest Syria is up for renewal in July. Now, Rationally speaking, the Kremlin should cooperate to avoid a worsening of serious food crisis, especially if an end game in Ukraine remains out of reach. But considering the current level of tensions between Russia and the West, I think the United States should be prepared for a Russian Security Council veto regardless, alongside continued Russian stalling on the Syrian constitutional committee. Moscow has no serious interest in seeing the committee advance. It will instead try to foster a Gulf Arab counterweight to Iran in Syria through normalization, especially for the contingency that Russia may need to scale back its own presence in Syria due to Ukraine. 16:14 Hanna Notte: First, unfortunately I think there's a widespread perception that the Ukraine war is not their war, that it's a Great Power NATO-Russia war, partially fueled by NATO and US actions visa vis Russia. 16:27 Hanna Notte: Second, there are accusations of Western double standards. The military support to Kyiv, the reception of Ukrainian refugees, these are rightly or wrongly viewed as proof that the West cares significantly more about conflict in Europe's neighborhood than those in the Middle East. 16:42 Hanna Notte: Third, regional elites worry about US conventional security guarantees. They fear that the threats posed by Russia and China will accelerate a decline in US power in the Middle East. And they also fear that the US will have limited bandwidth to confront Iran's missile and proxy activities. And with those fears, they feel they cannot afford to put all their eggs into the US basket. 17:07 Hanna Notte: And then finally, each regional state has very distinct business and security interests with Russia. As a result, and I'll end here, I think us opportunities to get regional states to turn against Russia are circumscribed. loosening these ties that states have been building with Russia will require a heavy lift. 18:57 Frederic Wehrey: This engagement is largely opportunistic and ad hoc. It seizes on instability and power vacuums and exploits the insecurities of US partners in the region about the reliability of US support, and their displeasure with the conditionality that the US sometimes attaches to its arms sales. Russian arms deliveries, in contrast, are faster and free from restrictions related to human rights. But Russia cannot provide the security guarantees that many Arab states have depended on from the United States. 19:29 Frederic Wehrey: Now, in the wake of its invasion of Ukraine, Russia is trying to reap dividends from its investment in the region, call in favors, and capitalize on local ambivalence and hostility to the United States, both from states and from Arab publics. America's Arab security partners have differed on joining the Western condemnation of Russian aggression, and some of refuse to join efforts to isolate Russia economically. 20:31 Frederic Wehrey: Russia's disastrous war in Ukraine is tarnishing its reputation as an arms supplier in the Middle East. Russian weapons have been shown to be flawed in combat and often fatally. So, Battlefield expenditures and attrition have whittled away Russia's inventory, especially precision munitions, and sanctions have eroded its defense industrial base, especially electronic components. As a result, Russia won't be able to fulfill its existing commitments, and potential buyers will be increasingly dissuaded from turning to Russia. This shortfall could be modestly exploited by China, which possesses large quantities of Russian made arms and spare parts, which you could use to keep existing inventories in the region up and running. It could also intensify its efforts to sell its own advanced weaponry like drones. 23:50 Caitlin Welsh: The war has reduced supplies and increased prices of foods exported from Ukraine and Russia, namely wheat, maize and sunflower oil, driven up demand for substitute products and reduced fertilizer exports from the Black Sea. Today's high cost of energy puts further pressure on food and fertilizer prices. Most vulnerable to the impact of these price spikes are countries for whom wheat is a major source of calories that rely on imports to meet their food security needs, and that source a significant proportion of their imports from Ukraine and Russia. 24:38 Caitlin Welsh: Egypt is the world's largest importer of wheat, sourcing over 70% of its wheat from the Black Sea. 25:42 Caitlin Welsh: The Russian Ukraine war is limiting access to wheat for Lebanon, already in one of the worst economic crises in the world. Lebanon has not recorded economic growth since 2017 and food price inflation inflation reached 400% in December 2021. Lebanon procures approximately 75% of its wheat from Russia and Ukraine. 28:48 Grant Rumley: Russia is one of the few countries in the world to maintain a relatively positive diplomatic standing with nearly every country in the Middle East. It does so through a combination of an active military presence, high level diplomatic engagement, and a concerted effort to position itself as a viable source of arms, should countries seek non-US material. 29:08 Grant Rumley: Russia's military presence in the region is well documented by Russian MOD statements. Russia has deployed over 60,000 troops to Syria since intervening in 2015. From its two bases in Syria, Hmeimim and Tartous, Russia is able to project power into the eastern Mediterranean, influence the course of the Syrian civil war, and intervene in countries like Libya. 29:47 Grant Rumley: Russia's invasion of Ukraine, however, threatens Russia standing in the region. Already reports indicate Russia has begun withdrawing some troops and mercenaries from the region to support its invasion of Ukraine. While we can expect these reports to continue if the war continues to go poorly for Russia, I'm skeptical of a full Russian withdrawal, and instead expect Russia to continue to consolidate its forces until it's left with a skeleton presence at Hmeimim and Tartous, its most strategic assets in the region. 30:26 Grant Rumley: On arms sales, the Russian defense industry, which has struggled to produce key platforms following sanctions initially placed after its 2014 invasion of Ukraine, will likely have to prioritize replenishing the Russian military over exporting. Further, customers of Russian arms may struggle with the resources to maintain and sustain the material in their inventory. Still, so long as Russia is able to make platforms, there will likely always be potential customers of Russian arms. 41:25 Grant Rumley: I definitely think customers of Russian arms are going to have several hurdles going forward, not only with simply maintaining and sustaining what they've already purchased, but in some of the basic logistics, even the payment process. Russian bank complained last month that it wasn't able to process close to a billion dollars in payments from India and Egypt over arms sales. I think countries that purchase Russian arms will also now have to consider the potential that they may incur secondary sanctions, in addition to running afoul of CAATSA . I think from from our standpoint, there are many ways that we can amend our security cooperation approach. The Middle East, I think is a key theater for the future of great power competition, not only have we been competing with Russia in terms of arms sales there, but China increasingly has sold armed drones to the region. They've sold it to traditional partners, Jordan, Saudi Arabia, Egypt, and the UAE. And what they're doing is is oftentimes what we're not willing to do, our partners in the region seek co-production, they seek technology sharing. China and Russia are willing to work together to build these advanced platforms, Russia and the UAE inked an agreement several years ago to produce a fifth generation fighter. Nothing's come of that yet. China and Saudi Arabia, however, signed an agreement a couple of months ago to jointly produce armed drones in Saudi Arabia. And so I think the US may want to think creatively in terms of both what we sell, how we sell it, and what we're doing to make this more of a relationship and something beyond a strict transaction. 43:39 Grant Rumley: Their presence in Syria has evolved from a modest airstrip in 2015, to a base at Hmeimim that by open source reporting can serve as a logistics hub, a medical hub, it has the runways to host Russia's most advanced bombers. There was reports before Ukraine that Russia was deploying two 22 bombers there and hypersonic missiles. Their facility at Tartous, likewise. Their ability to stage naval assets there has expanded to they can now stage up to 11 ships there. So it has grown from from a rather modest beginning to something much more challenging from a US standpoint. In terms of what we can we can do, I think we can continue to support Ukraine and the defense of Ukraine, and the longer that Russia is bogged down in Ukraine, the harder it will be for Russia's military to extend and maintain its presence in the Middle East. 1:01:45 Grant Rumley: I think the US has several partners in the middle of major Russian arms purchases that we can, like Turkey and the S 400, that has requested the F 16, or Egypt and Sukhoi Su-35, that has requested the F 15. I'm not saying we have to make a deal right now for that, but I think it's clear that these countries are going to have gaps in their capabilities where they had planned on having Russian platforms to complement, and we can work with our partners and work with our own defense industry and see if there's ways in which we can provide off ramps for them to gradually disinvest these Russian platforms. 1:03:00 Frederic Wehrey: When countries in the in the region buy US arms, they believe they're buying much more than the capability, the hardware, that they're purchasing an insurance policy. I think especially for states in the Gulf, there's a fundamental sense of insecurity. These are states that face Iran, but they're also autocrats. They're insecure because of their political systems. They face dissent from within. We saw that with Egypt. So they're purchasing a whole stream of US assurances -- they believe they are. 1:06:00 Grant Rumley: The issue of of co-production is one means to address a common complaint, which is buying from America takes too long. That its too complicated, that if we get in line to buy something from the US, we're going to have to wait years to get it. A good example is the F 16. There are over 20 countries in the world that fly the F 16. We currently -- Lockheed Martin builds it out of one facility. That facility, if you get in line today, you're probably not getting the F 16 for five years from when you sign on the dotted line for it. In the 70s and 80s, we co-produced the F 16 with three other European countries and we were able to get them off the line faster. The initial order at those facilities was for 1000 F 16s. The initial order for the F 16 plant in South Carolina was for 90 F 16s for Taiwan and Morocco. And so from an industry standpoint, it's a question of scale. And so they're not able to ramp up the production because while the demand may get closer to 1000 over time, it's at 128. Last I checked, it's not there yet. And so I think we can use foreign military financing, longer security cooperation planning, working with our partners on multi-year acquisition timetables to then also communicate and send a signal to the defense industry that these are orders for upgrades, for new kits that are going to come down the road. You can start to plan around that and potentially address some of these production lags. 1:17:52 Grant Rumley: China has a lot of legacy Russian platforms, and will likely be a leading candidate to transfer some of these platforms to countries that had purchased Russian arms in the past and may be seeking maintenance and sustainment for them. I think China's already active in the Middle East, it's already flooding the market with armed drones. It's already looking to market other platforms as well. It's sold air defense systems to Serbia. It's looking to advance its arm sales. And so if if we aren't going to be the supplier, China is going to step in. 1:18:57 Caitlin Welsh: USDA has projected that 35% of the current wheat crop from Ukraine will not be harvested this year. So their exports are curtailed, at the same time Russia's exports are continuing. Russia has been exempted. Russia's agricultural exports and fertilizer has been exempted from sanctions for the United States, EU and other countries. So Russia continues to export. In fact, USDA is estimating that Russia's exports are increasing at this time. And I'm also seeing open source reporting of Russia stealing grain from Ukraine, relabeling it, and exporting it at a premium to countries in the Middle East and North Africa. May 12, 2022 NBC News Clips Sen. Rand Paul (R-KY): My oath of office is to the US Constitution, not to any foreign nation. And no matter how sympathetic the cause, my oath of office is to the national security of the United States of America. We cannot save Ukraine by dooming the US economy. This bill under consideration would spend $40 billion. This is the second spending bill for Ukraine in two months. And this bill is three times larger than the first. Our military aid to Ukraine is nothing new, though. Since 2014, the United States has provided more than $6 billion dollars in security assistance to Ukraine, in addition to the $14 billion Congress authorized just a month ago. If this bill passes, the US will have authorized roughly $60 billion in total spending for Ukraine Sen. Rand Paul (R-KY): The cost of this package we are voting on today is more than the US spent during the first year of the US conflict in Afghanistan. Congress authorized force, and the President sent troops into the conflict. The same cannot be said of Ukraine. This proposal towers over domestic priorities as well. The massive package of $60 billion to Ukraine dwarfs the $6 million spent on cancer research annually. $60 billion is more than the amount that government collects in gas taxes each year to build roads and bridges. The $60 billion to Ukraine could fund substantial portions or entire large Cabinet departments. The $60 billion nearly equals the entire State Department budget. The 60 billion exceeds the budget for the Department of Homeland Security and for the Department of Energy. And Congress just wants to keep on spending and spending. May 12, 2022 Senate Committee on Foreign Relations Witnesses: Jessica Lewis, Assistant Secretary of State for Political-Military Affairs Erin McKee, Assistant Administrator for Europe and Eurasia, U.S. Agency for International Development Karen Donfried, Assistant Secretary of State for European and Eurasian Affairs, U.S. Department of State Beth Van Schaack, Ambassador-at-Large for Global Criminal Justice, U.S. Department of State Clips Sen. Ed Markey (D-MA): Are we making it very clear to Russia that we do not want to pose an existential threat to them, that our only goal is to restore the territorial integrity of Ukraine? Karen Donfried: We are making it very clear to Russia that this is not a conflict between Russia and the United States. We are not going to engage directly in this war. President Biden has been explicit in saying we are not sending US troops to fight in this war. So I do believe we have made that clear. Our goal here is to end a war not to enlarge it. Sen. Rob Portman (R-OH): As you all are waking up every morning, I know with the thought in mind that America's role here is to help Ukraine win and I want to talk a little about how we define victory. When Secretary Austin said after meeting with President Zelenskyy, that we can win this war against Russia -- this happened a few weeks ago -- I thought that was positive. On Monday, the foreign minister of Ukraine, who all of us have had a chance to visit with said, of course, the victory for us in this war will be a liberation of the rest of the territory. So Assistant Secretary Donfried, first, just a yes or no. Do you believe Ukraine can win this war? Karen Donfried: Yes. Sen. Rob Portman: And how would you define victory? Would you define victory as requiring the return of all Ukraine sovereign territory, including that that the Russians seized in 2014? Karen Donfried: Well, Senator Portman, thank you for that question. And thank you for your engagement on these issues. Your question very much relates to where Chairman Menendez began, which is, are we in a position of believing that it is Ukraine that should be defining what winning means? And I agreed with Chairman Menendez's statement on that, and that is where the administration is. We believe Ukraine should define what victory means. And our policy is trying to ensure Ukraine success, both by ? Sen. Rob Portman: So the administration's official position on victory is getting Crimea back and getting the Donetsk and Luhansk region back as well. Karen Donfried: Again, I believe that is for the Ukrainians to define. Karen Donfried: Against this threat to regional security, global stability, and our shared values, we are supporting freedom, democracy, and the rules based order that make our own security and prosperity and that of the world possible. Sen. Bob Menendez (D-NJ): I believe we must also think about reconstruction efforts in Ukraine, the tools and ongoing governance and economic reforms, specifically in the judicial space, that will facilitate rebuilding critical Ukrainian sectors and attracting foreign investment. May 11, 2022 House Committee on Appropriations, Subcommittee on Defense held a budget hearing on the Department of Defense. Witnesses: Lloyd J. Austin III, Secretary of Defense Michael J. McCord, Under Secretary of Defense (Comptroller)/Chief Financial Officer General Mark A. Milley, Chairman, Joint Chiefs of Staff Clips 21:40 General Mark Milley: Alongside our allies and partners, at any given time approximately 400,000 of us are currently standing watch in 155 countries and conducting operations every day to keep Americans safe. 21:56 General Mark Milley: Currently we are supporting our European allies and guarding NATO's eastern flank, in the face of the unnecessary war of aggression by Russia, against the people of Ukraine, and the assault on the democratic institutions and the rules based international order that have prevented great power war for the last 78 years since the end of World War Two. We are now facing two global powers, China and Russia, each with significant military capabilities, both who intend to fundamentally change the current rules based order. May 9, 2022 Clips Sen. Lindsay Graham (R-SC): If Putin still standing after all this then the world is going to be a very dark place China's going to get the wrong signal and we'll have a mess on our hands in Europe for decades to come so let's take out Putin by helping Ukraine April 25, 2022 March 26, 2022 November 4, 2015 House Foreign Affairs Committee Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-06-06
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CD252: Women?s Health Protection Act

The Women?s Health Protection Act is a bill written by Democrats that would guarantee access to abortion services in the United States. While this bill is unlikely to become law, learning what exactly the Democrats are proposing is instructive, as many of us will be voting with abortion in mind later this year. Now that the Supreme Court is poised to overturn previous decisions that guaranteed access to abortion services for the past 50 years, what do Democrats hope to do in response? Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Links to We?re Not Wrong Executive Producer Recommended Episode : A Coup for Capitalism Follow up reading: Tom Phillips, Patrick Wintour and Julian Borger. May 19, 2022. The Guardian. Background Sources Recommended Congressional Dish Episode : The Abortion Bill Abortion Background Laura Temme. May 12, 2022. FindLaw. Grace Panetta, Shayanne Gal, and Taylor Tyson. Updated May 9, 2022. Business Insider. Jon O. Shimabukuro. Feb 25, 2022. Congressional Research Service. Katherine Kortsmit et. al. Nov 27, 2020. Centers for Disease Control and Prevention. United Kingdom National Health Service. Start for Life. A. Pawlowski. Nov 9, 2017. Today. Supreme Court of the United States. Jun 29, 1992. Justia. The Draft Decision Adeel Hassan. May 6, 2022. The New York Times. Supreme Court of the United States. Feb 10, 2022. Bills Sponsor: Rep. Judy Chu (D-CA) Sponsor: Sen. Richard Blumenthal (D-CT) Bill Outline Gives health care providers the right to provide abortion services and gives patients the right to receive abortion services "without any of the following limitations or requirements": Requirements to perform specific tests or medical procedures prior to an abortion Requirements that direct health providers to provide medically inaccurate information before or during abortion services Limitations on the health care provider's ability to provide drugs to the patient Limitations preventing the health care provider from performing abortion services via telemedicine Limitations placed on abortion providing facilities that are not placed on hospitals and other facilities where similar procedures are performed Requirements that the patient attend medically unnecessary pre-abortion in-person office visits Limitations on abortions "at any point or points in time prior to fetal viability" Limitations on abortions "after fetal viability when, in the good-faith medical judgement of the treating health care provider, continuation of the pregnancy would pose a risk to the pregnant patient's life or health." Requirements that patients disclose the reason they want an abortion prior to fetal viability. Allows the courts to consider the following in determining if a requirement illegally impedes access to abortion services: If the requirement interferes with a health care providers ability to provide care and services or poses a risk to the patient's health or safety If the requirement would likely delay or deter some patients from accessing abortion services If the requirement is likely to increase the financial costs of providing or obtaining abortion services If the requirement would likely limit the availability of abortion services in a State or geographic region If the requirement imposes penalties on health care providers that are not imposed on or are more severe than penalties imposed on other health care providers for comparable conduct or failures to act This law would apply to the Federal Government and "each State government" and no State government can implement and enforce any law or regulation that conflicts with this law. The law would not govern physical access to clinic entrances, insurance coverage for abortions, contracts, or bans on partial birth abortions. Immediately upon enactment. Allows the Attorney General to sue any State or government official who implements or enforcement limitations or requirements that would be prohibited by this law. Allows individuals, "entities", and health care providers adversely affected by violations of the law to also sue the State that violates the law with illegal limitations and requirements The costs of the trial and attorney's fees would be paid by the State if the State loses the case. The person suing could not be forced to pay for attorney's fees if the claim was judged to be "non-frivolous" even if they lose. Sponsor: Trent Franks (R-AZ) Status: Died in 113th Congress Audio Sources May 10, 2022 September 24, 2021 Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-05-22
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CD251: BIF: Driving Dangers Sustained

The recently signed infrastructure law continues the United States? over-reliance on the most dangerous way to travel: driving a vehicle. Did Congress make sufficient safety improvements to decrease the dangers posed by driving in the United States? This episode will examine all vehicle-related safety provisions to help you weigh your own transportation options. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes : BIF: Appalachian Chemical Storage : BIF: The Growth of US Railroads : BIF: The Infrastructure BILL : Trailblazer vs. ThinThread Why You Should Be Afraid of Cars Apr 12, 2022. Statista. National Highway Traffic Safety Administration. Mar 2022. U.S. Department of Transportation. Jun 2021. Statista. Injury Facts. National Safety Council. Jon Ziomek. Sept 28, 2020. Historynet. National Highway Traffic Safety Administration. U.S. Department of Transportation. Problems the Law Does (and Does Not) Address Jake Blumgart. Nov 15, 2021. Governing. Self Driving Cars Neal E. Boudette. May 3, 2022. San Francisco Examiner. Natasha Yee. Apr 1, 2022. Phoenix New Times. Feb 20, 2022. Carsurance. Neal E. Boudette. Jul 5, 2021. The New York Times. Clifford Law Offices PC. May 5, 2021. The National Law Review. Katie Shepherd and Faiz Siddiqui. Apr. 19, 2021. The Washington Post. Riley Beggin. Jan 15, 2021. Government Technology. Faiz Siddiqui. Oct 22, 2020. The Washington Post. Niraj Chokshi. Feb 25, 2020. The New York Times. Michael Laris. Feb 11, 2020. The Washington Post. Alex Davies. May 16, 2019. Wired. Neal E. Boudette and Bill Vlasic. Sept 12, 2017. The New York Times. Rachel Abrams and Annalyn Kurtz. Jul 1, 2016. The New York Times. Alcohol Detection Systems Isaac Serna-Diez. Nov 23, 2021. YourTango. Keyless Entry Carbon Monoxide Deaths Jun 20, 2019. Kelley Uustal Trial Attorneys. Jun 7, 2019. KidsAndCars.org. Kids Left in Cars Morgan Hines. Aug 2, 2019. USA Today. Scottie Andrew and AJ Willingham. July 30, 2019. CNN. John Bacon. Jul 28, 2019. USA Today. Eric Stafford. May 6, 2019. [?Children Can Die When Left in the Back Seat on a Warm Day?and 800 Already Have. Car and Driver. National Highway Traffic Safety Administration. U.S. Department of Transportation. Motorcycle Helmets May 2022. Insurance Institute for Highway Safety. Insurance Information Institute. Adam E. M. Eltorai et. al. March 16, 2016. BMC Public Health. Truck Safety Rechtien. Non-motorist Safety Governors Highway Safety Association. March 2021. Governors Highway Safety Association. John Wenzel. Jan 6, 2020. Saint Paul Sign & Bollard. Richard Peace. Feb 20, 2019. Electric Bike Report. 911 System Upgrades Mark L. Goldstein. January 2018. Government Accountability Office. National 911 Program. December 2016. U.S. Department of Transportation. CD021: Trailblazer vs. ThinThread Followup The Chertoff Group. Atlantic Council. Tim Shorrock. Apr 15 2013. The Nation. The Law Law Outline Authorizes appropriations for Federal-Aid for highways at between $52 billion and $56 billion per year through fiscal year 2026 (over $273 billion total). Authorizes $300 million for for 2022, which increases by $100 million per year (maxing out at $700 million in 2026) Authorizes between $25 million and $30 million per year for "community resilience and evacuation route grants" on top of equal amounts for "at risk coastal infrastructure grants" Authorizes a total of $6.53 billion (from two funds) for the bridge investment program Caps the annual total funding from all laws (with many exceptions) that can be spent on Federal highway programs. Total through 2026: $300.3 billion Adds protected bike lanes to the list of projects allowed to be funded by the highway safety improvement project Adds "vulnerable road users" (non-motorists) to the list of people who must be protected by highway safety improvement projects If 15% or more of a state's annual crash fatalities are made up of non-motorists, that state will be required to spend at least 15% of its highway safety improvement project money on projects designed to improve safety for non-motorists. Each state, by the end of 2023, will have to complete a vulnerable road user safety assessment that includes specific information about each non-motorist fatality and serious injury in the last five years, identifies high-risk locations, and identifies possible projects and strategies for improving safety for non-motorists in those locations. Creates a new program to improve the ability of children to walk and ride their bikes to school by funding projects including sidewalk improvements, speed reduction improvements, crosswalk improvements, bike parking, and traffic diversions away from schools. Up to 30% of the money can be used for public awareness campaigns, media relations, education, and staffing. No additional funding is provided. It will be funded with existing funds for "administrative expenses". Each state will get a minimum of $1 million. Non-profit organizations are eligible, along with local governments, to receive and spend the funding. Non-profits are the only entities eligible to receive money for educational programs about safe routes to school. Allows the Transportation Secretary to allocate funds for dedicated bus lanes Adds "shared micromobility" projects (like bike shares) to the list of projects that can be funded as a highway project Electric bike-share bikes must stop assisting the rider at a maximum of 28 mph to be classified as an "electric bicycle" Requires each state, in return for funding, to carry out 1 or more project to increase accessible for multiple travel modes. The projects can be... The enactment of "complete streets standards" (which ensure the safe and adequate accommodation of all users of the transportation system) Connections of bikeways, pedestrian walkways, and public transportation to community centers and neighborhoods Increasing public transportation ridership Improving safety of bike riders and pedestrians Intercity passenger rail There's a way for State's to get this requirement waived if they already have Complete Streets standards in place Creates a grant program, funded at a minimum of $10 million per grant, for projects aimed at reducing highway congestion. Eligible projects include congestion management systems, fees for entering cities, deployment of toll lanes, parking fees, and congestion pricing, operating commuter buses and vans, and carpool encouragement programs. Buses, transit, and paratransit vehicles "shall" be allowed to use toll lanes "at a discount rate or without charge" By the end of 2022, the Secretary of Transportation needs to create a competitive grant pilot program to fund "bollard installation projects", which are projects that raise concrete or metal posts on a sidewalk next to a road that are designed to slow or stop a motor vehicle. The grants will pay for 100% of the project costs Appropriates only $5 million per year through 2026 By early 2023, the Transportation Department has to conduct a study on the existing and future effects of self-driving cars on infrastructure, mobility, the environment, and safety. Creates a grant program authorized for $1 billion total that will fund walking and biking infrastructure projects that each cost $15 million or more and connect communities to each other, including communities in different states, and to connect to public transportation. The Federal government will pay for 80% of the project costs, except in communities with a poverty rate over 40% (the Federal government will pay 100% of the project costs in impoverished communities). A Federal regulation will be created by November 2023 which will require new commercial vehicles to be equipped with automatic braking systems and there will be performance standards for those braking systems. Creates a three year pilot program, capped at 3,000 participants at a time, for people under 21 to be trained by people over the age of 26 to become commercial truck drivers. Drivers under the age of 21 are not allowed to transport any passengers or hazardous cargo A Federal regulation will be created by November 2023 requiring that limousines have a seat belts at every seating position, including side facing seats. Prohibit the Federal Government from withholding highway safety money to the states that refuse to require helmets for motorcycle drivers or passengers who are over the age of 18. Creates a grant program (by November 2023) that will fund states that want to create a process for notifying vehicle owners about any open recalls on their cars when they register their cars with the DMV. The state receiving the money is only required to provide the notifications for two years and participation in general is voluntary. Creates financial incentives for states to create laws that prohibit drivers from holding "a personal wireless communications device" while driving, has fines for breaking that law, and has no exemptions for texting when stopped in traffic. There are exceptions for using a cell phone for navigation in a "hands-free manner" Creates financial incentives for states to create laws that require curriculum in driver's education courses to include information about law enforcement procedures during traffic stops and the rights and responsibilities of the drivers when being stopped. The states would also have to have training programs for the officers for implementing the procedures that would be explained to drivers. Requires the Secretary of Transportation to implement all of the national-level recommendations outlined in a by the end of November 2022. Authorizes a little over $1 billion total for vehicle safety programs from 2022 through 2026 By November 2023, the Transportation Department will have to issue a regulation requiring fossil fuel powered vehicles with keyless ignitions to have an automatic shutoff system to prevent carbon monoxide poisoning. The amount of time that must trigger the shut off will be determined by the regulators. If the regulation is issued on time, this would go into effect most likely on September 1, 2024. The Secretary of Transportation must issue a regulation establishing minimum standards for crash avoidance technology that must be included in all vehicles sold in the United States starting on a date that will be chosen by the Secretary of Transportation. The technology must alert the driver of an imminent crash and apply the breaks automatically if the driver doesn't do so. The technology must include a land departure system that warns the driver that they are not in their lane and correct the course of travel if the driver doesn't do so. Repeals that required the Transportation Department to publish criteria that established timelines and performance requirements for anyone who got a grant to implement the Next Generation 9-1-1 project. By November 2024, the Secretary of Transportation will have to finish a regulation that requires passenger motor vehicles to be standard equipped with "advanced and impaired driving prevention technology" The technology must be able to monitor the performance of a driver and/or their blood alcohol level and be able to prevent or limit the car's operation if impairment is detected or if the blood alcohol is above the legal limit. This will apply to new cars sold after November 2030 at the latest. By November 2023, the Secretary of Transportation must finish a regulation requiring all new passenger vehicles to have a system alerting the driver visually and audibly to check the back seat when the car is turned off. Says it will be activated "when the vehicle motor is deactivated by the operator" Hearings February 2, 2022 Overview: The purpose of this hearing is for Members of the Subcommittee to explore the impact of automated vehicle deployment, including automated trucks and buses, on mobility, infrastructure, safety, workforce, and other economic and societal implications or benefits. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-05-08
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CD250: Congress Saves the Postal Service

Congress did a good thing! In this encouraging episode, learn about a new law that saved the Postal Service from financial doom without spending one extra penny in taxpayer money. Then, listen to the highlights from a recent hearing about the electrification of the Postal Service?s vehicle fleet. Louis DeJoy may not have sabotaged the 2020 election, but is he sabotaging the effort to transition the Postal Service away from fossil fuels? Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes : Postal Service Sabotage Lobbying Open Secrets. Bill Profile: H.R. 3076. Open Secrets. Bill Profile: H.R. 3076. Open Secrets. Darrell Issa: Federal Congressional Candidacy Data Jon Stewart Podcast March 24, 2022. The Problem with Jon Stewart. The Law : 342-92 (All no votes GOP) : 79-19 (All no votes GOP) Became law on December 20, 2006 Audio Sources April 5, 2022 The Committee on Oversight and Reform held a hearing to examine the benefits, opportunities, and challenges of electrifying the Postal Service fleet through the acquisition of the Next Generation Delivery Vehicle (NGDV). Witnesses: Tammy L. Whitcomb, Inspector General, U.S. Postal Service Office of Inspector General Victoria K. Stephen, Executive Director, Next Generation Delivery Vehicle, USPS Kenny Stein, Director, Policy, Institute for Energy Research Jill Naamane, Acting Director, Physical Infrastructure Team, General Services Administration Joe Britton, Executive Director, Zero Emission Transportation Association Clips 10:00 Rep. James Comer (R-KY): While Republicans are not against the Postal Service acquiring electric vehicles, we're against mandates that ignore the business needs and the financial situation of the Postal Service. Republicans believe the postal service must be self funded. This means the Postal Service should pay for its own capital needs, like purchasing new vehicles. Meanwhile, Americans can't afford to fill up their gas tanks, let alone buy an electric vehicle. But that isn't stopping Democrats from demanding your mailman has one. 26:30 Tammy L. Whitcomb: Last February, the Postal Service awarded a contract to produce and deploy up to 165,000 new delivery vehicles over the next 10 years. While the contract allows for both electric and gasoline powered vehicles, the Postal Service's current plan is for most of the new vehicles to be gasoline powered. We have two recent reports related to this purchasing decision. One of our reports was a research paper that identified the opportunities and challenges for the Postal Service in adopting these electric vehicles. We found electric vehicles are well suited for most postal routes, and there are clear benefits to their adoption. For example, a large fleet of electric vehicles would help the Postal Service decrease its greenhouse gas emissions and encourage the growth of the electric vehicle market in the United States. Additionally, electric vehicles are more mechanically reliable than gas powered vehicles and require less scheduled maintenance. They would also result in the Postal Service incurring lower and more reliable and stable energy costs. However, there are challenges associated with adopting an electric vehicle fleet. The upfront costs are significantly higher than gasoline powered vehicles. The Postal Service would need to pay a higher per vehicle price and incur the cost of installing the charging infrastructure. The Postal Service has over 17,000 delivery units that may host electric vehicles and the cost and issues associated with installing charging infrastructure will vary by each depending on the parking layout, power availability and required upgrades. Good planning along with early and consistent communication with local governments and utility companies could help overcome these challenges. We found the Postal Service could save money in the long term by deploying electric vehicles on certain routes. For example on longer routes in in areas of the country where gas prices are traditionally higher. The Postal Service might also be able to lower the costs associated with electric vehicles by exploring different mixes of the type and number of chargers. Because many delivery routes are short, it is unlikely that every vehicle would need to plug into a charger every night. There are two other factors that could significantly change the cost benefit analysis of purchasing electric vehicles: federal funding and local incentives. The Postal Service has stated it could achieve full electrification of its delivery fleet if Congress provided $6.9 billion. Incentive programs by local utility companies might also help offset costs. 33:57 Victoria Stephen: Any mix of replacement vehicles will deliver significant reductions in emissions and improvements in fuel economy over our existing long-life vehicles. I would note, however, that we have 12,500 routes over 70 miles in length that are not candidates for electrification today, and another 5000 that require all wheel drive vehicles due to extreme climate conditions. Electrification also comes with the challenge of installing infrastructure at a multitude of postal facilities. 42:36 Jill Naamane: Last month, the Postal Service ordered 50,000 new delivery vehicles including about 10,000 that will be electric. To inform its decision, USPS conducted a total cost of ownership analysis of a range of types of vehicles. information in this analysis included the maintenance and fuel costs of each vehicle. It also developed a model that recommends the lowest cost vehicle for each delivery route, and a mix of vehicles to purchase each year. The model is based on a set of assumptions including information from the total cost of ownership analysis and details on individual delivery routes. 43:28 Jill Naamane: Our preliminary analysis of the model raises questions about the way in which certain assumptions estimate the costs and benefits of the gas and electric vehicles. I'll highlight a few examples. First, the model we reviewed used a 2020 gas price that is almost $2 per gallon less than the current national average. 43:57 Jill Naamane: Second, the model appears to assume maintenance would be more expensive for electric vehicles than gas. This is inconsistent with research we have identified, our interviews with private delivery companies, and Postal Service documents that show electric vehicles are expected to be less expensive to maintain. 44:16 Jill Naamane: Third, the total cost of ownership analysis does not include a reduction in emissions as a benefit of electric vehicles. A separate USPS Environmental Impact Statement found that with no tailpipe emissions, electric vehicles would have this benefit. 44:40 Jill Naamane: I'll turn now to factors that have so far affected the widespread acquisition of electric vehicles in federal fleets. We've previously reported that these factors include the higher upfront costs of electric vehicles and uncertainties around the cost and installation of charging infrastructure. Our ongoing work indicates that these factors remain relevant. For example, USPS officials said the higher upfront cost was a key factor in their decision making. They estimate that the new electric and gas delivery vehicles will not cost the same until 2031. In addition, USPS estimates a range in the cost of installing chargers depending on the site and it is uncertain whether older facilities have sufficient power capacity to support the charging infrastructure. 51:50 Rep. Carolyn Maloney (D-NY): On March 24, the Postal Service placed its first purchase order of 50,000 vehicles with Oshkosh. And although the Postal Service initially insisted it could buy only 5000 electric vehicles in this first order, it doubled that amount to 10,000 after this committee and others began to ask questions. So I'd first like to ask Miss Steven, can you briefly explain what changed the Postal Service's analysis to allow for the increase of EVs in this purchase order? Victoria Stephen: Yes, thank you for the question. The first thing that that it's important to note is that the Postal Service has committed to continuing to reassess changes in the market. And so the point that you and some of the other speakers have made today about changing fuel prices?$2.19 was the price at the time that we prepared the analysis, we have continued to do ongoing analysis on changing fuel prices and sensitivity analysis to determine if that change is our mix. It certainly does. The gas prices are higher today than they were when we prepared the initial analysis. So that's one factor. The other key factor is that through the efforts of you and your colleagues, postal reform is making a big difference for the Postal Service. It allows us the flexibility to consider our capital position differently than prior to the passage of postal reform. So between those two key variables, we were able to go back and assess our ability to increase the proportion of electric vehicles within our financial resources and within our means, and we're happy to do that. 1:44:00 Rep. Clay Higgins (R-LA): What would the Postal Service do right now if a postal service vehicle runs out of fuel on its route? Victoria Stephen: A conventional vehicle today? Rep. Clay Higgins (R-LA): Yes, yes, ma'am. Victoria Stephen: Yeah, we will call our local team and they would? Rep. Clay Higgins (R-LA): And you?d bring in gas pretty quick, wouldn?t you? Victoria Stephen: That?s right. Rep. Clay Higgins (R-LA): What do you what are you going to do it for the electric postal service vehicle runs out of juice? Victoria Stephen: It?s more challenging? Rep. Clay Higgins (R-LA): You?re gonna have to tow it. So listen, I say to my colleagues across the aisle, maybe the time has come for this discussion, but let's have it honestly. It?s not going to work. We're spending billions of dollars of the people's treasury to accomplish some dream. Not to mention what my colleague has brought up: the raw materials for these batteries being mined by child slave labor overseas. That raw product bought by China is assembled into the finished product by slave labor in China. Do we support that? For God's sakes, let's take a step back. As a committee, we owe it to the American people that we serve to take a hard look at this thing. 2:01:06 Rep. Glen Grothman (R-WI): Some of my colleagues proposed requiring 75% of the vehicles to be electric. Do you think that's a reasonable possibility? Do you think that's really something that could be handled right now? Victoria Stephen: I think it's a bit beyond what our estimates say is possible. When we were asked by some of the congressional committee members and staff throughout the last year to assess how far we could go with our electrification, the response we provided was 70% of our delivery fleet acquisitions over the course of the decade could be electrified if resources were made available. 3:16:05 Rep. Jared Huffman (D-CA): And then there's the problem with the Postal Service assumptions about EV range, a 70 mile vehicle range. In your extensive work in this field, including the vehicles that companies like GM, Ford and rivian? are providing to private fleets, did USPS use the correct assumption about battery range? Joe Britton: No, it is far inconsistent with what we're seeing in the marketplace and I'll give you a couple examples. The Ford eTransit van? gets nearly two miles per kilowatt hour in the battery pack. The workhorse C Series? gets one and a half miles per kilowatt hour in the battery pack. The Arrival van that is being contracted with UPS gets 1.7 miles per kilowatt hour in the battery pack. The USPS assumption is that this vehicle gets seven tenths of a mile per kilowatt hour in the battery pack. The only other vehicle that we have seen that has that inefficient of an electric drive train would be a Class A tractor trailer or semi truck fully weighted down. It is impossible [unintelligible] -- Rep. Jared Huffman (D-CA): And if the model used the correct range assumptions, wouldn't that significantly affect the total cost of ownership analysis, including the number of charging stations needed to support these vehicles? Joe Britton: That's correct. You would not need nearly as many charging stations as the Postal Service is asserting. 3:20:12 Rep. James Comer (R-KY): It's a worthy cause to try to change to try to transfer from fossil fuels to electric vehicles. But the policies in the Biden administration are making that even more difficult than the economics of it. For example, the Biden administration war on coal is making it more difficult to mine coal and to burn coal. I know that from being from a coal burning state and a coal producing state. You have to have coal to make electricity. You also have to have natural gas to make electricity. We have a lot of problems with our energy policy in America from the Biden administration. And he's gonna make electrifying vehicles even more difficult. February 8, 2022 Clips 20:40 Sen. Mike Lee (R-UT): Because the Postal Service is required to deliver to every American even on unprofitable routes. The postal service may be charging lower than market rates in its service contracts with private companies. This may not only shortchange the Postal Service making further taxpayer bailouts likely, but it could also distort competition in the package delivery market. 22:45 Sen. Mike Lee (R-UT): Senator Scott's amendment would alleviate some of the financial burdens that this bill would impose on taxpayers and the Medicare program by forcing the Postal Service to reimburse Medicare for all of the additional costs that would be created by requiring future postal retirees to enroll in Medicare. 2:38:33 Sen. Rob Portman (R-OH): I would also like to note what this bill does not do because there has been some misinformation out there. One, it does not appropriate new funds to the post office, period. Two, it does not change the accounting or costing structure for packages and letters so it does not disadvantage private-sector carriers. That is very important to me. This is the status quo that we are putting in place here. It does not change the accounting or costing structure for packages and letters. Third, it does not allow the Postal Service to enter into new commercial services like postal banking. That is also very important to me. And contrary to the claims of this bill?s opponents, this bill does not impact the solvency of the Medicare hospital trust fund. That is the trust fund we all talk about. It is going belly-up in 2026. It does not affect it, period. CBO has actually written us something saying that, but it just makes sense. People are already in Part A. And this bill does not increase the Medicare Part B and Part D premiums based on the CBO analysis. Why? Partly because it is such a small number of people. Only 25 percent of postal employees were not already in Part B and Part D, so additional ones make very little difference. But part of it is they are paying their premiums. February 8, 2022 Clips 37:10 Rep. Darrell Issa (R-CA): The fact is they haven't made a profit since 2006 as they are mandated. The truth is, the post office isn't lacking liquidity, it is bankrupt and nothing in this bill will make the post office truly solvent. It simply wipes out and wipes away debts and shifts the burden onto taxpayers. The bill forgives $46 billion in debts owed by the Postal Service, forcing the taxpayers to pay it. May 13, 2021 Clip 44:45 Rep. Speier (D-CA): Believe it or not, prohibition has been over for 90 years, but somehow, we never fixed it so that the US Postal Service could be in a position to mail and process liquor and wine. So for 90 years, they have had their hands tied, while others were able to do that task. We can't have the Postal Service break even or even become profitable if we keep tying its hands. So we also have an interest in protecting small businesses, micro breweries, small retail establishments, small wineries. They cannot ship their product because they either have to have the sanctions of the wholesalers or they don't ship. Senate Homeland Security and Governmental Affairs Committee August 21, 2020 Clips 12:30 Louis DeJoy: Our business model established by the Congress requires us to pay our bills through our own efforts. I view it as my personal obligation to put the organization in a position to fulfill that mandate. With action from the Congress and our regulator, and significant effort by the Postal Service, we can achieve this goal. This year, the Postal Service will likely be reported loss of more than $9 billion. Without change, our losses will only increase in the years to come. It is vital that Congress enact reform legislation that addresses our unaffordable retirement payments. Most importantly, Congress must allow the postal service to integrate our retiree health benefits program with Medicare. August 6, 2009 Speakers: John Potter, Former Postmaster General David Williams, Former Inspector General, USPS Clips 46:10 David Williams: The Postal accountability and Enhancement Act of 2006 requires the postal service to make 10 annual payments of $5 billion each in addition to the $20 billion already set aside for pre funding its retiree health benefits, the size of the $5 billion payments has little foundation and the current payment method is damaging to the financial viability of the Postal Service even in profitable times. The payment amounts were not actuarially based instead, the required payments were built to ensure that the Postal Act did not affect the federal budget deficit. This seems inexplicable since the Postal Service is not part of the federal budget, does not receive an appropriation for operations and makes its money from the sale of postal services. The payment amounts are fixed through 2016 and do not reflect the funds earnings. Estimates of the Postal Service liability as a result of changing economic circumstances, declining staff size or developments in health Care and pharmaceutical industries. The payments do not take into account the Postal Service?s ability to pay and are too challenging even in normal times. 1:10:10 John Potter: And when I look around the world and see what other posts are, if you?re in Australia and you want to update your driver?s license, renew it, you go to the post office. If you?re in Italy and you go into a bank, more than likely going to the post office, if you?re in Japan and you want to buy insurance, more than likely you?re going to the post office. And if you?re in France and you have a cell phone issue, more than likely, again, you?re going to the post office. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
2022-04-24
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CD249: A Few Good Laws

We have some new laws! In this episode, a brief overview of the government funding law that (finally) funds the government for 2022 and provides money and weapons to Ukraine, a new law that protects drinking water, a new law that slightly reduces the corruption of Puerto Rico?s financial oversight board, and a new law that guarantees you rights that corporate contracts have been taking away. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Executive Producer Recommended Congressional Dish Episode : Weapons for the World Background Sources Recommended Congressional Dish Episodes : Understanding the Enemy : Keeping Ukraine : Target Belarus : Electrifying Puerto Rico : Controlling Puerto Rico : Crisis in Puerto Rico Recommended Congressional Dish YouTube Videos Earmarks Jamie Dupree. Mar 10, 2022. Regular Order by Jamie Dupree. Continuing Resolution Mary Ellen McIntire. Mar 9, 2022. Roll Call. Ballotpedia. Updated February 11, 2021. Red Hill Water Contamination Sophia McCullough. Mar 7, 2022. Hawai?i Public Radio. Scott Kim. Mar 4, 2022. Hawai?i Public Radio. Sophia McCullough. Mar 1, 2022. Hawai?i Public Radio. Associated Press, HPR News Staff. Nov 22, 2021. Hawai?i Public Radio. Scott Kim and Catherine Cruz. Oct 27, 2021. Hawai?i Public Radio. Lead Pipes Karen Pinchin. Sep 10, 2019. Frontline. Brittany Greeson. Natural Resources Defense Council. Puerto Rico U.S. District Court for the District of Puerto Rico. Feb 18, 2019. Case: 17-03283-LTS. Forced Arbitration Matt Stoller. Mar 7, 2022. BIG. Laws Law Outline Title VII: General Provisions $300 million from the "Operation and Maintenance, Defense-Wide" account must be used for the Ukraine Security Assistance Initiative The money can be used for "salaries and stipends" of Ukraine's military in addition to equipment and support Prohibitions against Russia will not be lifted until "the armed forces of the Russian Federation have withdrawn from Crimea, other than armed forces present on military bases" agreed upon by the Russian and Ukrainian governments. "None of the funds made available by this Act may be used to provide arms, training or other assistance to the Azov Battalion. Title VII: General Provisions "None of the funds appropriated by this Act may be made available for the implementation of any action or policy that recognizes the sovereignty of the Russian Federation over Crimea or other territory in Ukraine." This will end when the Secretary of State certifies that "the Government of Ukraine has reestablished sovereignty over Crimea and other territory in Ukraine under the control of Russian-backed separatists." Title I: Department of Agriculture $100 million for Food for Peace grants $195.5 million for US military personnel $213 million for Air Force procurement $5.5 billion for operations and maintenance $3.5 billion of this is for replacing weapons given to Ukraine and for "defense services" and "military eduction and training" provided to the Government of Ukraine. Authorizes $4 billion for direct loans to Ukraine and NATO countries, along with permission to reduce or cancel their obligations to pay us back. Amount provided this way "shall not be considered assistance for the purposes of provisions of law limiting assistance to a country" $2.65 billion to countries housing Ukrainians refugees for emergency food and shelter $1.4 billion for refugees $1.12 billion for Ukraine and "other countries" - Poland and Hungary in particular - that are enacting IMF economic reforms and expanding the private sector $650 million for the "foreign military financing program" for Ukraine "and countries impacted by the situation" $647 million for the "Economic Support Fund" which can be transferred to fund activities "related to public engagement, messaging, and countering disinformation." Expands the emergency powers of the President in 2022 to allow him to provide $3 billion in military equipment, services and money to foreign countries and international organizations, instead of the usual limit of $100 million per year Increases the amount of weapons that are allowed to be exported from $2.05 billion to $3.1 billion $120 million for "Transition Initiatives" Law Outline DIVISION A - FURTHERING ADDITIONAL CONTINUING APPROPRIATIONS ACT, 2022 Extends government funding at 2021 levels until March 11, 2022. Allows the Department of Defense to spend their Operations and Maintenance and emergency funds to respond to the Red Hill Bulk Storage Facility spill but caps the spending at $53 million. Adds $250 million to their budget for 2022 to address drinking water contamination caused by the spill. Adds $100 to their budget so they can comply with the Hawaii state order to remove the fuel from the Red Hill facility. Senate: Unanimous Consent Law Outline Sec 2: Disclosure by Professional Persons Seeking Approval of Compensation Under Section 316 or 317 of PROMESA Requires attorneys, accountants, appraisers, auctioneers, agents, and other professional persons to file a disclosure listing their conflicts of interest with debtors, creditors - or their attorneys and accountants - and the oversight board members, directors, and employees. Failure to file the disclosure, or an incomplete disclosure, will prevent that person from being paid. Being "not a disinterested person" or having an "adverse interest" will also disqualify that person from compensation. This will only apply to cases filed AFTER enactment of this law (January 20, 2022) Law Outline Sec. 2: Predispute Arbitration of Disputes Involving Sexual Assault and Sexual Harassment. Invalidates predispute arbitration clauses in contracts if the person alleging sexual harassment or sexual assault or a representative of a class action lawsuit elects to go to court instead of use arbitration. This will apply whether the case is to be filed in Federal, Tribal, or State court. The decision over where the case will be heard will be made by a court, not by an arbitrator regardless of what is in the contract. Sec 3: Applicability Will only apply to any dispute or claim that "arises or accrues" on or after the date of enactment. Hearings and Debate February 23, 2022 Clips 1:19:09 Jennifer Gonzalez-Colon: Representative Velazquez and myself have proposed this bipartisan initiative in the last two congresses having achieved passage in the house during the last session Rep. Sheila Jackson Lee (D-TX): In response to dire fiscal issues facing Puerto Rico at the time, Congress passed the Puerto Rico oversight management and economic stability Act, or Preska in 2016. That legislation established the financial oversight and management board with control over Puerto Rico's budget laws, financial plans and regulations and the authority to retain professionals to assist the board in executing its responsibilities. Rep. Nydia Velázquez (D-NY): The Puerto Rico recovery accuracy in disclosures act of 2021 or product eliminates a double standard currently facing Puerto Rico. On the US Code and federal bankruptcy procedure. Any conflicts of interest or even the perception of such conflict between those working on the bankruptcy and the debtor there are required to be disclosed. However, a loophole in the current law prevents this requirement from being extended to the people of Puerto Rico. Rep. Dan Bishop (R-NC): Most significantly the gap in the 2016 law created a potential for undisclosed compensation terms and undiscovered conflicts of interest visa vi parties and interest for professional serving in Puerto Rico's bankruptcy. Resident Commissioner Jenniffer González Colon: Learning that someone was involved in businesses of one of the parties in the case only after they are named and working on the case does not create assurance of their commitment to the best interest of Puerto Rico or even managing the depth. Rep. Dan Bishop (R-NC): This builds disclosure and oversight requirements increase the likelihood that conflicts of interest will be caught and timely addressed before compensation decisions are made. Rep. Nydia Velázquez (D-NY): While we can have different opinions on how effectively the oversight board is carrying out its mission, one thing should be clear. The island's residents should be entitled to the same rights and protections of any debtor on the mainland. February 7, 2022 Clips 9:21 Rep. Michelle Fischbach (R-MN): If H.R. 4445 becomes law contracts will be far less likely to include the option to arbitrate. 10:28 Rep. Michelle Fischbach (R-MN): Why are some in Congress so intent on taking this legislation forward today? For years, Democrats have tried to gut arbitration agreements for all kinds of different claims and plaintiffs. If Democrats had their way, everyone from consumers to civil rights plaintiffs, to those with antitrust claims, to individuals using financial service products and others would not be able to contract in advance to resolve disputes through arbitration. 47:33 Rep. Jim Jordan (R-OH): We know that if parties can?t agree in advance to arbitrate then they are unlikely to agree to arbitrate after there has been a dispute. As a result, the plaintiff may never get to arbitration. House Armed Services Committee, Subcommittee on Readiness January 11, 2022 This hearing conducted oversight into the Navy?s maintenance of the Red Hill Bulk Fuel Storage Facility, the Navy?s investigation into and response to the November 2021 release of fuel from Red Hill facility impacting drinking water, its impacts on service members and civilians, clean-up and remediation efforts, and next steps forward. Witnesses: Vice Admiral Yancy Lindsey, Commander, Navy Installations Command Rear Admiral Blake Converse, Deputy Command, U.S. Pacific Fleet Rear Admiral John K. Korka, Commander, Naval Facilities Engineering Systems Command Chief of Civil Engineers Rear Admiral Peter Stamatopoulos, Supply Corps, United States Navy, Commander, Naval Supply Systems Command and 49th Chief of Supply Corps Captain Michael McGinnis Pacific Fleet Surgeon, Commander, U.S. Pacific Fleet Clips 9:05 Rep. John Garamendi (D-CA): Why does Red Hill exist in the first place? Even before the attack on Pearl Harbor, the United States had grown concerned about the vulnerability of above ground fuel storage tanks in 1940. The construction began on the Red Hill bulk fuel storage facility, a one in a kind engineering innovation that secured the fuel from enemy aerial attack. The facility holds 250 million gallons of fuel in 20 steel lined underground tanks encased in concrete. These tanks are connected to three gravity fed pipelines, running two and a half miles to Pearl Harbor fuel appears. However, a statistic less commonly quoted by the DoD is that the facility is also 100 feet above the groundwater aquifer that provides water to the residents of Oahu. Thus, it has always been the responsibility of the military to ensure that these tanks are maintained in a manner that not only protects the wartime fuel supply, but the people have a Oahu water supply 18:45 Rear Admiral Blake Converse: I want to start by saying that the Navy caused this problem, we own it, and we're gonna fix it. 19:45 Rear Admiral Blake Converse: Beginning on November 28, residents of certain neighborhoods on our Joint Base Pearl Harbor Hickam here in Hawaii in military housing began recording vapors, discoloration and contamination of the water provided by the Navy. The Red Hill shaft well, which sits near the Navy's Red Hill bulk fuel storage facility was immediately suspected to be the source of this contamination as that was the source of the drinking water for those affected neighborhoods. So it was shut down that evening, November 28. And it just remained isolated since that day. Later, samples from the Red Hill shaft well would confirm the presence of petroleum contamination. 39:40 Captain Michael McGinnis: Medical teams have screened over 5900 patients during this event. The vast majority were conducted within the first two weeks of our response. patient's symptoms were consistent with an acute environmental exposure event. patient's symptoms consistent with the following nausea, vomiting, headache, diarrhea, skin or eye irritation. Once patients were removed from the water source, the symptoms rapidly resolved. 42:12 Rear Admiral Blake Converse: Our best information is that this recent spill was due to operator error. 1:31:45 Rep. Kaiali'i Kahele (D-HI): Tanks number three, number four and number 11 have not been inspected for approximately 40 years. So my question to Navy Supply Systems Command is why are these tanks still in operation? And how can you assure this committee and the people of Hawaii that tanks three, four and 11, that have not even been looked at in the last 40 years, are safe to use and meet current API 653 guidelines for bulk fuel storage underground facilities. Rear Admiral Peter Stamatopoulos: Yes, sir. Thank you for the question. Yes, you are correct. There are tanks, as you mentioned, that have been out of periodicity for quite a long time. 1:41:27 Rep. Jackie Speier: Are the commanding officers and our executive officers that are assigned to Red Hill trained in petroleum management? Rear Admiral Peter Stamatopoulos: I'll take that question ma'am. The answer is no. House Committee on Appropriations, Subcommittee on Defense January 12, 2022 Witnesses: General David H. Berger, Commandant of the U.S. Marine Corps General Charles Q. Brown, Jr., Chief of Staff of the U.S. Air Force Admiral Michael Gilday, Chief of Naval Operations of the U.S. Navy General Joseph M. Martin, Vice Chief of Staff of the U.S. Army Mike McCord, Under Secretary of Defense (Comptroller) General John W. Raymond, Chief of Space Operations of the U.S. Space Force Clips 29:51 Mike McCord: First, as I believe you're all aware a full year CR, we reduce our funding level below what we requested and what we believe we need. On the surface at the department level as a whole, the reduction to our accounts would appear to be about a billion dollars below our request, which would be significant. Even if that was the only impact. The actual reduction in practice will be much greater. Because we would have significant funding that's misaligned, trapped or frozen in the wrong places and unusable because we don't have the tools or flexibilities to realign funds on anything like the scam we would need to fix all the problems that the chiefs are going to describe. 30:27 Mike McCord: I know all of you are very familiar with the fact that virtually all military construction projects in each year's budget including the FY 22 budget are new starts that cannot be executed under a CR. 34:00 Mike McCord: The six longest CRs in the history of the Defense Department have all occurred in this last 12 year period. We have turned a 12 month fiscal year into an eight month fiscal year in terms of our ability to initiate new starts and enter contracts. This should be unacceptable and not the new normal. It's hard to see this full impact because or in the inefficiency from looking from outside because the organization has of course adapted to its circumstances just as organisms do. Nobody plans to enter into contracts in the first quarter of a fiscal year now because the odds that we would actually be able to do so are so low. Therefore we in turn, have no significant contract delays to report to you when we're under a CR. 1:44:02 Rep. Mike Rogers (R-MI): This is about decreasing domestic spending and increasing defense spending. 1:44:20 **Rep. Betty McCollum (D-MN):**This was my effort to quash those who are talking about year long CRs. No one on the Appropriations Committee is, yet you see things in the news. And unfortunately, sir, it's usually from your side of the aisle, and I'll pull it again. And it's a December 1 quote, and I can get you the gentlemen, the person who said it. Republicans should be in favor of a CR until Biden is out of office, so they're not going to talk about a one year CR. That would be the proper Republican thing to do. And anybody saying otherwise is deeply foolish. I know you and I, sir, do not agree with that sentiment. And my my goal here is to educate other members who don't understand the appropriations process as well as you and I, and many other of our colleagues that we serve alongside with. House Committee on the Judiciary, Subcommittee on Antitrust, Commercial, and Administrative Law January 16, 2019 Witnesses: Eliza Dushku, Actor/Producer & Graduate Student Myriam Gilles, Professor of Law, Paul R. Verkuil Chair in Public Law, Benjamin N. Cardozo School of Law Lora Henry, Canton, OH Andowah Newton, New York, NY Sarah Parshall Perry, Legal Fellow, Edwin Meese III Center for Legal and Judicial Studies, The Heritage Foundation Tatiana Spottiswoode, Law Student, Columbia Law School Anna St. John, President and General Counsel, Hamilton Lincoln Law Institute Clips 30:59 Anna St. John: Instead, it's worth considering that taking away the possibility of arbitration for these victims is a top-down, heavy handed approach that denies them the advantages of arbitration as a means of adjudicating their claims. 41:04 Sarah Parshall Perry: Since the 1980s, the progressive leadership of this and the upper chamber has sought to curtail the protections of the Federal Arbitration Act through bills including the Arbitration Fairness Act, Arbitration Fairness for Students Act, Consumer Mobile Fairness Act, Fairness and Nursing Homes Act, Sonsumer Fairness Act, Restoring Statutory Rights and Interests of the States Act, the Forced Arbitration Justice Repeal Act and many, many more. 47:13 Sarah Parshall Perry: arbitration agreements are not mandatory. No one, and the Supreme Court has held, is forced to sign a contract. But curtailing access to arbitration would injure, in the end, the very people that Congress has sought for nearly a century to protect. 54:50 Myriam Gilles: First, the entire regime is shrouded in secrecy. And not just because victims want to keep these issues confidential, which by the way is up to them, right? They should have the autonomy and the choice to decide. But because companies want to keep this stuff under wraps, they want to hide and shield sexual predators, and they don't want their business in the public eye. They don't want to deal with regulators or even with lawsuits. The secrecy here on its own just makes this a terrible way to deal with sexual harassment because it means that victims of sexual violence in the workplace who bravely tried to come forward are prohibited from telling their stories in a public forum. Instead, they're forced into this private process where everything is under wraps and siloed. Right, so this is the second bad thing. Victims can join together, even when their injuries stem from the same wrongdoing, even when they've occurred at the hands of the same perpetrator. Even when the company's tolerance for sexual harassment is structural and pervasive. Victims have to go it alone, never knowing about one another. They have to go into arbitration single file. I don't know where all these statistics are coming from about how great arbitration is how people win it all the time, because the truth is, no one goes into arbitration because it's siloed because it's secret because they don't know about what else is going on in the workplace. The secrecy that blankets these individualized proceedings prevents one victim from ever learning whether others right in the cubicle next to them might have experienced the same, the same tragedies, the same traumas and when vid when survivors are in the dark about cases filed by others in the workplace that makes coming forward that makes being the first person to come forward that much harder. As a corollary, and this is an important corollary, the relief that is available to the individual claimant doesn't prevent the wrongdoer from preying on other women doesn't prevent the predator from having all sorts of misconduct against other women in the workplace. The proceedings are one on one and the relief that arbitrators are allowed by contract to grant is individualized. They can't ever order any changes beyond what can help this one individual that happens to have the courage to come before them. I mean, can you imagine a worse system for dealing with toxic corporate culture because I can't. Third, and I think this is really important and all the survivors who've spoken about this forced arbitration is a system where the employers write the rules, and they pick the arbitral provider. Which means that victims of sexual harassment are shunted into a regime that stacked against them from the get go. First, because the arbitrators economic interest is to be very good to the repeat player employer so that they can be chosen for another arbitration next time. So the repeat player problem has been well documented, and I think it's alive and well in arbitration. And the secrecy protects that. And second, because the employer designs the entire arbitration process, it does so to serve its interests, not the interests of its workers, but its interests which again, are to keep discrimination and harassment under a veil of secrecy and out of the public eye. So given all of these things, given how bad this system is for victims of sexual harassment, it's no wonder that so few ever decide to go into private arbitration. I wouldn't. I think it sounds terrible. 1:04:00 Myriam Gilles: When an arbitration complaint is filed, it's filed in secret. In other words, the only entities that know that the arbitration has even been filed are the the employer, the employer, the complaining employee and the arbitration entity. The AAA or JAMS are one of these arbitration providers. Nobody else knows. Contrast that with court. I go down to the DC District Court today and I file a complaint, that complaint is on the public record. Right. And so as the defendants answer or motion to dismiss all the pleadings, their public litigation in the public court system, it has power, and the power it has is the power of signaling, not only to the defendant that I've sued, but to all similarly situated defendants that this is a wrong. This person has complained about something she's told her story, and she plans to prove it. None of that happens in arbitration from the beginning. It is private throughout the entire proceeding, which is held in a secret location, no public no press. All of it is private. Arbitrators don't write decisions. There are only three states in the union that currently require minimal disclosure of arbitrations pretty redacted and hard to read. If you're a researcher like I am about these issues. Other than that, everything that happens in arbitration is a black box. 1:32:18 Tatiana Spottiswoode: And the forced arbitration is so unfair. Rep. Darrell Issa (R-CA): I understand you you think forced arbitration is unfair, that's great. Most of the people on that side want to eliminate it for everything not just situations like this. Other representative: will the gentleman yield for a question? Rep. Darrell Issa: I will not. 1:49:15 Myriam Gilles: The FAA was enacted in 1925. But it was enacted so that sophisticated business people could negotiate for arbitration provisions and those provisions would be respected by courts. It was never intended to be imposed via standard form contract. And in fact, if you read the legislative history, if you read the legislation, it accepts and exempts employees. So the idea that the FAA applies to employees is something that was created by a conservative majority of the Supreme Court in 1991, in a case called Circuit City, sorry, first actually was Gilmer and then Circuit City, I can't keep all the bad cases straight. And those are the cases in which the Court interpreted, I would say misinterpreted, the FAA to apply to employees like this. So that now employers can just stick these clauses into job applications, orientation materials, even an innocuous email from HR can include a forced arbitration clause. That was not what the 1925 Congress intended they they'd be rolled, they should be rolling in their in their grades. This is not what they intended. This is what a Supreme Court intent on protecting corporations intended beginning in the 1990s. 2:39:26 Rep. Michelle Fischbach (R-MN): You know what's happened to so many women and others in the workplace is terrible but I really am concerned that by involving the government in these contracts between adults in the area of sexual harassment and assault we're opening a door for more government involvement in other areas of contracts. 2:42:09 Rep. Michelle Fischbach (R-MN): And I would argue that you have you sign it it is not you know even though we use the it's forced arbitration as people are saying it's not really you you have signed something that you have agreed to it. House Committee on the Judiciary November 16, 2021 Witnesses: Gretchen Carlson, Journalist and Advocate Myriam Gilles, Paul R. Verkuil Chair in Public Law, Benjamin N. Cardozo School of Law Phil Goldberg, Managing Partner, Shook, Hardy & Bacon L.L.P. Deepak Gupta, Founding Principal, Gupta Wessler PLLC Andrew Pincus, Partner, Mayer Brown L.L.P. Lieutenant Commander Kevin Ziober, Lieutenant Commander, U.S. Navy Reserves Clips 26:35 Rep. James Sensenbrenner (R-WI): You'll hear a different view from me. Eliminating arbitration achieves one thing, it enriches trial attorneys. 29:11 Rep. James Sensenbrenner (R-WI): The AAJ, or American Association for Justice, is the nice sounding name of the plaintiffs attorneys lobbying organization. It also happens to be a huge donor to Democratic candidates, contributing millions of dollars each cycle to their campaigns. 29:52 Rep. Jamie Raskin (D-MD): Mr. Chairman, point of order. Rep. David Cicilline (D-RI) What is your point of order? Rep. Jamie Raskin: My question is just can we impute the policy positions that members of the committee take to campaign contributions? Because if so, I think I'd be doing it a lot more frequently. I thought that's something that we don't do. Rep. David Cicilline: It's an excellent point of order, I'm sure Mr. Sensenbrenner didn't intend to communicate that in that way. Rep. Jamie Raskin: We're gonna be hearing a lot more of that in our committee if that's permissible, but I'm just curious. Maybe we can have some research done. Rep. James Sensenbrenner: Will the gentleman yield? Rep. David Cicilline: I think we don't need to engage with you. I this is an important issue with strongly held beliefs on both sides. [crosstalk] 36:00 Rep. Jerry Nadler (D-NY): We used to have a concept in law. When I went to law school they still taught it called contracts of adhesion where a contract was unenforceable if one party had no choice in entering into it. All of these arbitration clauses almost are contracts of adhesion. You try when you want to get a credit card, try crossing out the fine print if you can find it without the magnifying glass that that says that you will settle all all disputes in arbitration, cross it out, see if you get the credit card. See if you get the bank loans if you get the mortgage. You have no see if you get the car loan, you have no choice. 1:42:00 Gretchen Carlson: arbitration means that you have no way of knowing that anyone else is facing the same thing within the confines of the workplace structure. There's no way to know because the whole process is secret. And as I described during my testimony, if you do muster up the courage to go and complain, and you have an arbitration clause, that's a good day for the company, because no one will ever know anything about your story. The worst ramification of all of this is that the perpetrator gets to stay in the job. And I think one of the reasons that we've seen this cultural revolution that we're experiencing right now is because the American public was actually so angry about hearing about these stories, and they were wondering, why didn't we know about this? And the reason they didn't know about it, is because of forced arbitration. 2:00:30 Deepak Gupta: I've gone back and looked at the history of the act from 1925. People weren't blind to the possibility of abuse. They raised these concerns before this, this committee, in fact, and the and the architects of the legislation were clear, this is about letting businesses have equal bargaining power that want to resolve their disputes out of court, letting them do that, and I have no objection to that. That makes perfect sense. But but the the drafters were clear this is not about foisting this on people who don't consent through, take it or leave it contracts. And in fact, Congress put in a provision section one of the Federal Arbitration Act that says this shall not apply to any class of workers. Remarkably, the Supreme Court has read that language to mean precisely the opposite. And now it can apply to any class of workers. And so so we have just we've strayed so far away from what Congress intended in 1925. And that's why only this body Congress can set things right. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
2022-03-20
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CD248: Understanding the Enemy

Russian President Vladimir Putin has launched an illegal, unjustified war against Ukraine and Putin himself is the only person who can stop the war immediately. In this episode, we seek to understand why President Putin has launched this horrific war in order to judge our country?s ability to bring the war to a quicker end. Executive Producer: Alex Bilotta Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes : Keeping Ukraine : National Endowment for Democracy : Nuclear Desperation Ukraine Civil War Alan MacLeod. Feb 22, 2022. The Washington Standard. Office of the High Commissioner for Human Rights. Oct 8, 2021. United Nations. Andrew Higgins and Peter Baker. Feb 6, 2014. The New York Times. NATO Expansion Becky Sullivan. Updated Feb 24, 2022. NPR. Henry Meyer and Ilya Arkhipov. Dec 17, 2021. Bloomberg. Joe Dyke. Mar 20, 2021. Foreign Policy. NATO. Updated May 5, 2020. NATO. 2020. National Security Archive. December 12, 2017. Arms Control Association. February 9, 1990. National Security Archive. In The Encyclopedia Britannica. NATO in Ukraine Xinhua. Nov 14, 2021. News.cn Chad Menegay and Aimee Valles. Sept 22, 2021. NationalGuard.mil Reuters. April 3, 2021. U.S. News and World Report. NATO Allied Maritime Command. Mar 17, 2021. European Deterrence Initiative Paul Belkin and Hibbah Kaileh. Updated July 1, 2021. Congressional Research Service. Weapons Treaties TASS. Feb 21, 2022. Center for Arms Control and Non-proliferation. Updated March 2021. Arms Control Association. Last reviewed August 2019. General Dynamics General Dynamics. Russia-China Alliance Chen Aizhu. Feb 4, 2022. Reuters. Robin Brant. Feb 4, 2022. BBC News. Sanctions Matina Stevis-Gridneff. Feb 25, 2022. The New York Times. Congressional Response Joe Gould. Feb 22, 2022. Defense News. Reuters. Feb 25, 2022. Reuters. Images State Property Fund of Ukraine USAID Partnership Audio Sources February 23, 2022 Overview: At her weekly briefing House Speaker Nancy Pelosi (D-CA), along with several of her Democratic colleagues, talked about the situation in Ukraine and President Biden?s sanctions after Russia recognized the independence of Donetsk and Luhansk in the Donbas region. Clips 10:25 Rep. Adam Schiff (D-CA): Putin is terrified by the prospect of a democracy at his border. A democracy, giving an example to the Russian people of the kind of life and economy they might enjoy if they cast aside their own autocrat. This is, I think, one of the preeminent motivations of Vladimir Putin. 15:32 Rep. Barbara Lee (D-CA): I chair the House Appropriations Subcommittee on State and Foreign operations, which oversees many of the resources to assist the Ukrainian people through this crisis. This includes our economic assistance to Ukraine, including loan guarantees. Economic assistance would come through the economic support accounts for Europe, Eurasia and Central Asia, those of the accounts that would come through. Without getting in too many of the weeds, I wanted to just mention that because it's an effort that we're looking at now in terms of our funding. It also includes humanitarian plans, including funding for refugees, God forbid, and for those internally displaced by conflict. The administration has committed to us that in the event of conflict, there is a need over the next 12 months of at least $1 billion for humanitarian needs. So I support the efforts of the administration also to bolster Ukraine's economy, including the proposed $1 billion in loan guarantees to continue with Ukraine's economic reforms. 22:08 Rep. Nancy Pelosi (D-CA): I will just close by saying this: I had the privilege of going with President Clinton, who invited four members of Congress House and Senate, Democrat and Republican, the Senate Democrat was Senator Joe Biden. And we went to the expansion of NATO meeting in Paris. And it was all the heads of state of the then NATO countries who spoke and it was so beautiful because they all spoke in such a positive way about NATO. We thought like we were NATO and they were also NATO, they had ownership and agency in possession of the NATO possibilities. The representative of Russia who was there was Boris Yeltsin. And he was very ebullient, but he was welcoming to what was called was the expansion we had supported in our own country, the Baltic States, Poland, others countries becoming what was called the Partnership for Peace and it included many countries. Now Putin is saying push it back to pre-1997. Don't ever try to add another country and remove weapons out of Eastern Europe. That's what he wanted. No, that was not going to happen. 33:35 Rep. Nancy Pelosi (D-CA): What is this about? The people of Hung -- many of us have visited Ukraine and have seen that they love democracy. They do not want to live under Vladimir Putin. He does not want the Russian people to see what democracy looks like. And therefore he wants to bring them under his domain. 35:15 Rep. Nancy Pelosi (D-CA): When we talk about the president, he's doing the sanctions. He has a full picture of all this. As I said, he was present there the day of the expansion of NATO. I saw the respect he commanded then, and that was 1997, by the heads of state of all those countries, and of course, that has only grown over time, by his leadership, but also the expansion of NATO. I think we're very well served, I respect his judgement. And again, it's not just about when you do the sanctions, or how you support the people. It's about how the world views what Putin is doing. This is a very evil move on the part of Vladimir Putin. February 22, 2022 Overview: During an address, President Biden announced new sanctions against Russia in response to President Vladimir Putin sending Russian troops into separatist regions of Ukraine. Clips 1:57 President Biden So, today, I?m announcing the first tranche of sanctions to impose costs on Russia in response to their actions yesterday. These have been closely coordinated with our Allies and partners, and we?ll continue to escalate sanctions if Russia escalates. We?re implementing full blocking sanctions on two large Russian financial institutions: V.E.B. and their military bank. We?re implementing comprehensive sanctions on Russian sovereign debt. That means we?ve cut off Russia?s government from Western financing. It can no longer raise money from the West and cannot trade in its new debt on our markets or European markets either. Starting tomorrow [today] and continuing in the days ahead, we will also impose sanctions on Russia?s elites and their family members. They share in the corrupt gains of the Kremlin policies and should share in the pain as well. And because of Russia?s actions, we?ve worked with Germany to ensure Nord Stream 2 will not ? as I promised ? will not move forward. 3:23 President Biden: Today, in response to Russia?s admission that it will not withdraw its forces from Belarus, I have authorized additional movements of U.S. forces and equipment already stationed in Europe to strengthen our Baltic Allies ? Estonia, Latvia, and Lithuania. Let me be clear: These are totally defensive moves on our part. We have no intention of fighting Russia. We want to send an unmistakable message, though, that the United States, together with our Allies, will defend every inch of NATO territory and abide by the commitments we made to NATO. 4:22 President Biden: Russian forces remain positioned in Belarus to attack Ukraine from the north, including war planes and offensive missile systems. Russia has moved troops closer to Ukraine?s border with Russia. Russia?s naval vessels are maneuvering in the Black Sea to Ukraine?s south, including amphibious assault ships, missile cruisers, and submarines. Russia has moved supplies of blood and medical equipment into position on their border. You don?t need blood unless you plan on starting a war. 6:25 President Biden: I?m going to take robust action and make sure the pain of our sanctions is targeted at the Russian economy, not ours. We are closely monitoring energy supplies for any disruption. We?re executing a plan in coordination with major oil-producing consumers and producers toward a collective investment to secure stability and global energy supplies. This will be ? this will blunt gas prices. I want to limit the pain the American people are feeling at the gas pump. This is critical to me. 7:37 President Biden: Yesterday, the world heard clearly the full extent of Vladimir Putin?s twisted rewrite of history, going back more than a century, as he waxed eloquently, noting that ? well, I?m not going to go into it, but nothing in Putin?s lengthy remarks indicated any interest in pursuing real dialogue on European security in the year 2022. 8:04 President Biden: He directly attacked Ukraine?s right to exist. He indirectly threatened territory formerly held by Russia, including nations that today are thriving democracies and members of NATO. He explicitly threatened war unless his extreme demands were met. And there is no question that Russia is the aggressor. February 21, 2022 Overview: Russian President Vladimir Putin announced after a Security Council meeting that Russia would recognize the independence of the separatist republics of Donetsk and Luhansk in Ukraine?s Donbas region. Clips 00:15 President Putin: I would like to emphasise again that Ukraine is not just a neighbouring country for us. It is an inalienable part of our own history, culture and spiritual space. These are our comrades, those dearest to us ? not only colleagues, friends and people who once served together, but also relatives, people bound by blood, by family ties. 1:22 President Putin: I would like to start by saying that the modern Ukraine was completely created by Russia. To be more exact, Bolshevist, partially communist Russia. This process started almost immediately after the 1917 revolutions, leading and planning and his group of supporters did it in a rough way. If we talk about Russia, they were alienating parts of historical territories of Russia. And millions of people who live there, obviously no one asked anything. Then before the Great Patriotic War, Stalin added to the USSR and handed over some lands that belonged to Poland and Hungary, and as a compensation gave some ancient German lands to Poland. And the 1960s crucial decision to take Crimea away from Russia and also gave it to Ukraine. That's how the territory of Soviet Ukraine was formed. 3:05 President Putin: We cannot help but react to this real threat, especially since I would like to reiterate that Western backers they can help Ukraine with getting this weapon to create yet another threat for our country because we can see how consistently they are pumping Ukraine with weapons. The United States alone starting from 2014 transferred billions of dollars including the arm supply training personnel. In recent months, Western weapons are sent to Ukraine given ceaselessly in front of the eyes of the entire world 7:05 President Putin: Actually, as I have already said, Soviet Ukraine is the result of the Bolsheviks? policy and can be rightfully called ?Vladimir Lenin?s Ukraine.? He was its creator and architect. This is fully and comprehensively corroborated by archival documents, including Lenin?s harsh instructions regarding Donbass, which was actually shoved into Ukraine. And today the ?grateful progeny? has overturned monuments to Lenin in Ukraine. They call it decommunization. You want decommunization? Very well, this suits us just fine. But why stop halfway? We are ready to show what real decommunizations would mean for Ukraine. 9:31 President Putin: Everything seemed to be working well in conditions of the totalitarian regime, and outwardly it looked wonderful, attractive and even super-democratic. And yet, it is a great pity that the fundamental and formally legal foundations of our state were not promptly cleansed of the odious and utopian fantasies inspired by the revolution, which are absolutely destructive for any normal state. 10:05 President Putin: It seems that the Communist Party leaders were convinced that they had created a solid system of government and that their policies had settled the ethnic issue for good. But falsification, misconception, and tampering with public opinion have a high cost. The virus of nationalist ambitions is still with us, and the mine laid at the initial stage to destroy state immunity to the disease of nationalism was ticking. As I have already said, the mine was the right of secession from the Soviet Union. 13:55 President Putin: Even two years before the collapse of the USSR, its fate was actually predetermined. It is now that radicals and nationalists, including and primarily those in Ukraine, are taking credit for having gained independence. As we can see, this is absolutely wrong. The disintegration of our united country was brought about by the historic, strategic mistakes on the part of the Bolshevik leaders and the CPSU leadership, mistakes committed at different times in state-building and in economic and ethnic policies. The collapse of the historical Russia known as the USSR is on their conscience. 14:39 President Putin: It was our people who accepted the new geopolitical reality that took shape after the dissolution of the USSR, and recognised the new independent states. Not only did Russia recognise these countries, but helped its CIS partners, even though it faced a very dire situation itself. This included our Ukrainian colleagues, who turned to us for financial support many times from the very moment they declared independence. Our country provided this assistance while respecting Ukraine?s dignity and sovereignty. According to expert assessments, confirmed by a simple calculation of our energy prices, the subsidised loans Russia provided to Ukraine along with economic and trade preferences, the overall benefit for the Ukrainian budget in the period from 1991 to 2013 amounted to $250 billion. 21:24 President Putin: A stable statehood has never developed in Ukraine; its electoral and other political procedures just serve as a cover, a screen for the redistribution of power and property between various oligarchic clans. Corruption, which is certainly a challenge and a problem for many countries, including Russia, has gone beyond the usual scope in Ukraine. It has literally permeated and corroded Ukrainian statehood, the entire system, and all branches of power. Radical nationalists took advantage of the justified public discontent and saddled the Maidan protest, escalating it to a coup d'état in 2014. They also had direct assistance from foreign states. According to reports, the US Embassy provided $1 million a day to support the so-called protest camp on Independence Square in Kiev. In addition, large amounts were impudently transferred directly to the opposition leaders? bank accounts, tens of millions of dollars. 23:37 President Putin: Maidan did not bring Ukraine any closer to democracy and progress. Having accomplished a coup d'état, the nationalists and those political forces that supported them eventually led Ukraine into an impasse, pushed the country into the abyss of civil war. 26:30 President Putin: In fact, it all came down to the fact that the collapse of the Ukrainian economy was accompanied by outright robbery of the citizens of the country, and Ukraine itself was simply driven under external control. It is carried out not only at the behest of Western capitals, but also, as they say, directly on the spot through a whole network of foreign advisers, NGOs and other institutions deployed in Ukraine. They have a direct impact on all the most important personnel decisions, on all branches and levels of government: from the central and even to the municipal, on the main state-owned companies and corporations, including Naftogaz, Ukrenergo, Ukrainian Railways, Ukroboronprom, Ukrposhta , Administration of Sea Ports of Ukraine. There is simply no independent court in Ukraine. At the request of the West, the Kiev authorities gave representatives of international organizations the pre-emptive right to select members of the highest judicial bodies - the Council of Justice and the Qualification Commission of Judges. In addition, the US Embassy directly controls the National Corruption Prevention Agency, the National Anti-Corruption Bureau, the Specialized Anti-Corruption Prosecutor's Office, and the Supreme Anti-Corruption Court. All this is done under a plausible pretext to increase the effectiveness of the fight against corruption. Okay, but where are the results? Corruption has blossomed as luxuriantly, and blooms, more than ever. Are the Ukrainians themselves aware of all these managerial methods? Do they understand that their country is not even under a political and economic protectorate, but reduced to the level of a colony with a puppet regime? The privatization of the state has led to the fact that the government, which calls itself the "power of patriots", has lost its national character and is consistently leading the matter towards the complete desovereignization of the country. 31:04 President Putin: In March 2021, a new Military Strategy was adopted in Ukraine. This document is almost entirely dedicated to confrontation with Russia and sets the goal of involving foreign states in a conflict with our country. The strategy stipulates the organisation of what can be described as a terrorist underground movement in Russia?s Crimea and in Donbass. It also sets out the contours of a potential war, which should end, according to the Kiev strategists, ?with the assistance of the international community on favourable terms for Ukraine.? 32:05 President Putin: As we know, it has already been stated today that Ukraine intends to create its own nuclear weapons, and this is not just bragging. Ukraine has the nuclear technologies created back in the Soviet times and delivery vehicles for such weapons, including aircraft, as well as the Soviet-designed Tochka-U precision tactical missiles with a range of over 100 kilometres. But they can do more; it is only a matter of time. They have had the groundwork for this since the Soviet era. In other words, acquiring tactical nuclear weapons will be much easier for Ukraine than for some other states I am not going to mention here, which are conducting such research, especially if Kiev receives foreign technological support. 33:47 President Putin: Foreign advisors supervise the activities of Ukraine?s armed forces and special services and we are well aware of this. Over the past few years, military contingents of NATO countries have been almost constantly present on Ukrainian territory under the pretext of exercises. The Ukrainian troop control system has already been integrated into NATO. This means that NATO headquarters can issue direct commands to the Ukrainian armed forces, even to their separate units and squads. The United States and NATO have started an impudent development of Ukrainian territory as a theatre of potential military operations. Their regular joint exercises are obviously anti-Russian. Last year alone, over 23,000 troops and more than a thousand units of hardware were involved. A law has already been adopted that allows foreign troops to come to Ukraine in 2022 to take part in multinational drills. Understandably, these are primarily NATO troops. This year, at least ten of these joint drills are planned. Obviously, such undertakings are designed to be a cover-up for a rapid buildup of the NATO military group on Ukrainian territory. This is all the more so since the network of airfields upgraded with US help in Borispol, Ivano-Frankovsk, Chuguyev and Odessa, to name a few, is capable of transferring army units in a very short time. Ukraine?s airspace is open to flights by US strategic and reconnaissance aircraft and drones that conduct surveillance over Russian territory. I will add that the US-built Maritime Operations Centre in Ochakov makes it possible to support activity by NATO warships, including the use of precision weapons, against the Russian Black Sea Fleet and our infrastructure on the entire Black Sea Coast. 36:54 President Putin: Article 17 of the Constitution of Ukraine stipulates that deploying foreign military bases on its territory is illegal. However, as it turns out, this is just a conventionality that can be easily circumvented. Ukraine is home to NATO training missions which are, in fact, foreign military bases. They just called a base a mission and were done with it. 37:16 President Putin: Kiev has long proclaimed a strategic course on joining NATO. Indeed, each country is entitled to pick its own security system and enter into military alliances. There would be no problem with that, if it were not for one ?but.? International documents expressly stipulate the principle of equal and indivisible security, which includes obligations not to strengthen one's own security at the expense of the security of other states. This is stated in the 1999 OSCE Charter for European Security adopted in Istanbul and the 2010 OSCE Astana Declaration. In other words, the choice of pathways towards ensuring security should not pose a threat to other states, whereas Ukraine joining NATO is a direct threat to Russia's security 38:10 President Putin: Let me remind you that at the Bucharest NATO summit held in April 2008, the United States pushed through a decision to the effect that Ukraine and, by the way, Georgia would become NATO members. Many European allies of the United States were well aware of the risks associated with this prospect already then, but were forced to put up with the will of their senior partner. The Americans simply used them to carry out a clearly anti-Russian policy. 38:41 President Putin: A number of NATO member states are still very sceptical about Ukraine joining NATO. We are getting signals from some European capitals telling us not to worry since it will not happen literally overnight. In fact, our US partners are saying the same thing as well. ?All right, then? we respond, ?if it does not happen tomorrow, then it will happen the day after tomorrow. What does it change from the historical perspective? Nothing at all.? Furthermore, we are aware of the US leadership?s position and words that active hostilities in eastern Ukraine do not rule out the possibility of that country joining NATO if it meets NATO criteria and overcomes corruption. All the while, they are trying to convince us over and over again that NATO is a peace-loving and purely defensive alliance that poses no threat to Russia. Again, they want us to take their word for it. But we are well aware of the real value of these words. In 1990, when German unification was discussed, the United States promised the Soviet leadership that NATO jurisdiction or military presence will not expand one inch to the east and that the unification of Germany will not lead to the spread of NATO's military organisation to the east. This is a quote. They issued lots of verbal assurances, all of which turned out to be empty phrases. Later, they began to assure us that the accession to NATO by Central and Eastern European countries would only improve relations with Moscow, relieve these countries of the fears steeped in their bitter historical legacy, and even create a belt of countries that are friendly towards Russia. However, the exact opposite happened. The governments of certain Eastern European countries, speculating on Russophobia, brought their complexes and stereotypes about the Russian threat to the Alliance and insisted on building up the collective defence potentials and deploying them primarily against Russia. Worse still, that happened in the 1990s and the early 2000s when, thanks to our openness and goodwill, relations between Russia and the West had reached a high level. Russia has fulfilled all of its obligations, including the pullout from Germany, from Central and Eastern Europe, making an immense contribution to overcoming the legacy of the Cold War. We have consistently proposed various cooperation options, including in the NATO-Russia Council and the OSCE formats. Moreover, I will say something I have never said publicly, I will say it now for the first time. When then outgoing US President Bill Clinton visited Moscow in 2000, I asked him how America would feel about admitting Russia to NATO. I will not reveal all the details of that conversation, but the reaction to my question was, let us say, quite restrained, and the Americans? true attitude to that possibility can actually be seen from their subsequent steps with regard to our country. I am referring to the overt support for terrorists in the North Caucasus, the disregard for our security demands and concerns, NATO?s continued expansion, withdrawal from the ABM Treaty, and so on. 43:05 President Putin: Today, one glance at the map is enough to see to what extent Western countries have kept their promise to refrain from NATO?s eastward expansion. They just cheated. We have seen five waves of NATO expansion, one after another ? Poland, the Czech Republic and Hungary were admitted in 1999; Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia in 2004; Albania and Croatia in 2009; Montenegro in 2017; and North Macedonia in 2020. As a result, the Alliance, its military infrastructure has reached Russia?s borders. This is one of the key causes of the European security crisis; it has had the most negative impact on the entire system of international relations and led to the loss of mutual trust. The situation continues to deteriorate, including in the strategic area. Thus, positioning areas for interceptor missiles are being established in Romania and Poland as part of the US project to create a global missile defence system. It is common knowledge that the launchers deployed there can be used for Tomahawk cruise missiles ? offensive strike systems. In addition, the United States is developing its all-purpose Standard Missile-6, which can provide air and missile defence, as well as strike ground and surface targets. In other words, the allegedly defensive US missile defence system is developing and expanding its new offensive capabilities. The information we have gives us good reason to believe that Ukraine?s accession to NATO and the subsequent deployment of NATO facilities has already been decided and is only a matter of time. We clearly understand that given this scenario, the level of military threats to Russia will increase dramatically, several times over. 45:07 President Putin: I will explain that American strategic planning documents confirm the possibility of a so-called preemptive strike at enemy missile systems. We also know the main adversary of the United States and NATO. It is Russia. NATO documents officially declare our country to be the main threat to Euro-Atlantic security. Ukraine will serve as an advanced bridgehead for such a strike. 46:00 President Putin: Many Ukrainian airfields are located not far from our borders. NATO?s tactical aviation deployed there, including precision weapon carriers, will be capable of striking at our territory to the depth of the Volgograd-Kazan-Samara-Astrakhan line. The deployment of reconnaissance radars on Ukrainian territory will allow NATO to tightly control Russia?s airspace up to the Urals. Finally, after the US destroyed the INF Treaty, the Pentagon has been openly developing many land-based attack weapons, including ballistic missiles that are capable of hitting targets at a distance of up to 5,500 km. If deployed in Ukraine, such systems will be able to hit targets in Russia?s entire European part. The flying time of Tomahawk cruise missiles to Moscow will be less than 35 minutes; ballistic missiles from Kharkov will take seven to eight minutes; and hypersonic assault weapons, four to five minutes. It is like a knife to the throat. I have no doubt that they hope to carry out these plans, as they did many times in the past, expanding NATO eastward, moving their military infrastructure to Russian borders and fully ignoring our concerns, protests and warnings. Excuse me, but they simply did not care at all about such things and did whatever they deemed necessary. Of course, they are going to behave in the same way in the future. 47:46 President Putin: Russia has always advocated the resolution of the most complicated problems by political and diplomatic means, at the negotiating table. We are well aware of our enormous responsibility when it comes to regional and global stability. Back in 2008, Russia put forth an initiative to conclude a European Security Treaty under which not a single Euro-Atlantic state or international organisation could strengthen their security at the expense of the security of others. However, our proposal was rejected right off the bat on the pretext that Russia should not be allowed to put limits on NATO activities. Furthermore, it was made explicitly clear to us that only NATO members can have legally binding security guarantees. 48:35 President Putin: Last December, we handed over to our Western partners a draft treaty between the Russian Federation and the United States of America on security guarantees, as well as a draft agreement on measures to ensure the security of the Russian Federation and NATO member states. The United States and NATO responded with general statements. There were kernels of rationality in them as well, but they concerned matters of secondary importance and it all looked like an attempt to drag the issue out and to lead the discussion astray. We responded to this accordingly and pointed out that we were ready to follow the path of negotiations, provided, however, that all issues are considered as a package that includes Russia?s core proposals which contain three key points. First, to prevent further NATO expansion. Second, to have the Alliance refrain from deploying assault weapon systems on Russian borders. And finally, rolling back the bloc's military capability and infrastructure in Europe to where they were in 1997, when the NATO-Russia Founding Act was signed. These principled proposals of ours have been ignored. 50:21 President Putin: They are again trying to blackmail us and are threatening us with sanctions, which, by the way, they will introduce no matter what as Russia continues to strengthen its sovereignty and its Armed Forces. To be sure, they will never think twice before coming up with or just fabricating a pretext for yet another sanction attack regardless of the developments in Ukraine. Their one and only goal is to hold back the development of Russia. 51:06 President Putin: I would like to be clear and straightforward: in the current circumstances, when our proposals for an equal dialogue on fundamental issues have actually remained unanswered by the United States and NATO, when the level of threats to our country has increased significantly, Russia has every right to respond in order to ensure its security. That is exactly what we will do. 51:33 President Putin: With regard to the state of affairs in Donbass, we see that the ruling Kiev elites never stop publicly making clear their unwillingness to comply with the Minsk Package of Measures to settle the conflict and are not interested in a peaceful settlement. On the contrary, they are trying to orchestrate a blitzkrieg in Donbass as was the case in 2014 and 2015. We all know how these reckless schemes ended. Not a single day goes by without Donbass communities coming under shelling attacks. The recently formed large military force makes use of attack drones, heavy equipment, missiles, artillery and multiple rocket launchers. The killing of civilians, the blockade, the abuse of people, including children, women and the elderly, continues unabated. As we say, there is no end in sight to this. Meanwhile, the so-called civilised world, which our Western colleagues proclaimed themselves the only representatives of, prefers not to see this, as if this horror and genocide, which almost 4 million people are facing, do not exist. But they do exist and only because these people did not agree with the West-supported coup in Ukraine in 2014 and opposed the transition towards the Neanderthal and aggressive nationalism and neo-Nazism which have been elevated in Ukraine to the rank of national policy. They are fighting for their elementary right to live on their own land, to speak their own language, and to preserve their culture and traditions. How long can this tragedy continue? How much longer can one put up with this? Russia has done everything to preserve Ukraine?s territorial integrity. All these years, it has persistently and patiently pushed for the implementation of UN Security Council Resolution 2202 of February 17, 2015, which consolidated the Minsk Package of Measures of February 12, 2015, to settle the situation in Donbass. Everything was in vain. Presidents and Rada deputies come and go, but deep down the aggressive and nationalistic regime that seized power in Kiev remains unchanged. It is entirely a product of the 2014 coup, and those who then embarked on the path of violence, bloodshed and lawlessness did not recognise then and do not recognise now any solution to the Donbass issue other than a military one. In this regard, I consider it necessary to take a long overdue decision and to immediately recognise the independence and sovereignty of the Donetsk People's Republic and the Lugansk People's Republic. I would like to ask the Federal Assembly of the Russian Federation to support this decision and then ratify the Treaty of Friendship and Mutual Assistance with both republics. These two documents will be prepared and signed shortly. 54:52 President Putin: We want those who seized and continue to hold power in Kiev to immediately stop hostilities. Otherwise, the responsibility for the possible continuation of the bloodshed will lie entirely on the conscience of Ukraine?s ruling regime. February 19, 2022 Overview: Western powers should drop their policy of "appeasement" toward Moscow, Ukrainian leader Volodymyr Zelensky told a security forum Saturday, as fears mount of a Russian invasion of Ukraine. Clips 13:37 Vladimir Zelensky: Ukraine has received security guarantees for abandoning the world?s third nuclear capability. We don?t have that weapon. We also have no security. 14:37 Vladimir Zelensky: Since 2014, Ukraine has tried three times to convene consultations with the guarantor states of the Budapest Memorandum. Three times without success. Today Ukraine will do it for the fourth time. I, as President, will do this for the first time. But both Ukraine and I are doing this for the last time. I am initiating consultations in the framework of the Budapest Memorandum. The Minister of Foreign Affairs was commissioned to convene them. If they do not happen again or their results do not guarantee security for our country, Ukraine will have every right to believe that the Budapest Memorandum is not working and all the package decisions of 1994 are in doubt. February 18, 2022 Overview: Following talks with NATO allies, President Biden provided an update on Russia-Ukraine tensions and international efforts to resolve the crisis. Clips 3:04 President Biden: You know, look, we have reason to believe the Russian forces are planning to and intend to attack Ukraine in the coming week ? in the coming days. We believe that they will target Ukraine?s capital, Kyiv, a city of 2.8 million innocent people.War posturing - Biden US provided record security assistance to Ukraine 4:00 President Biden: This past year, the United States provided a record amount of security assistance to Ukraine to bolster its defensive ? $650 million, from Javelin missiles to ammunition. And we also previously provided $500 million in Ukrai- ? in humanitarian aid and economic support for Ukraine. And earlier this week, we also announced an additional sovereign loan guarantee of up to $1 billion to strengthen Ukraine?s economic resilience. 7:24 President Biden: Well, I don?t think he is remotely contemplating nuclear ? using nuclear weapons. But I do think it?s ? I think he is focused on trying to convince the world that he has the ability to change the dynamics in Europe in a way that he cannot. February 15, 2022 Overview: President Biden gave an update on tensions between Russia and Ukraine, calling for diplomacy to resolve tensions. Clips 1:47 President Biden: The United States has put on the table concrete ideas to establish a security environment in Europe. We?re proposing new arms control measures, new transparency measures, new strategic stability measures. These measures would apply to all parties ? NATO and Russia alike. 2:14 President Biden: We will not sacrifice basic principles, though. Nations have a right to sovereignty and territorial integrity. They have the freedom to set their own course and choose with whom they will associate. 3:17 President Biden: And the fact remains: Right now, Russia has more than 150,000 troops encircling Ukraine in Belarus and along Ukraine?s border. An invasion remains distinctly possible. That?s why I?ve asked several times that all Americans in Ukraine leave now before it?s too late to leave safely. It is why we have temporarily relocated our embassy from Kyiv to Lviv in western Ukraine, approaching the Polish border. 4:12 President Biden: The United States and NATO are not a threat to Russia. Ukraine is not threatening Russia. Neither the U.S. nor NATO have missiles in Ukraine. We do not ? do not have plans to put them there as well. 4:26 President Biden: To the citizens of Russia: You are not our enemy. And I do not believe you want a bloody, destructive war against Ukraine ? a country and a people with whom you share such deep ties of family, history, and culture. 5:52 President Biden: Today, our NATO Allies and the Alliance is as unified and determined as it has ever been. And the source of our unbreakable strength continues to be the power, resilience, and universal appeal of our shared democratic values. Because this is about more than just Russia and Ukraine. It?s about standing for what we believe in, for the future we want for our world. 7:25 President Biden: And when it comes to Nord Stream 2, the pipeline that would bring natural gas from Russia to Germany, if Russia further invades Ukraine, it will not happen. 7:35 President Biden: While I will not send American servicemen to fight Russia in Ukraine, we have supplied the Ukrainian military with equipment to help them defend themselves. We have provided training and advice and intelligence for the same purpose. 7:50 President Biden: And make no mistake: The United States will defend every inch of NATO territory with the full force of American power. An attack against one NATO country is an attack against all of us. And the United States commitment to Article 5 is sacrosanct. Already, in response to Russia?s build-up of troops, I have sent additional U.S. forces to bolster NATO?s eastern flank. Several of our Allies have also announced they?ll add forces and capabilities to ensure deterrence and defense along NATO?s eastern flank. We will also continue to conduct military exercises with our Allies and partners to enhance defensive readiness. And if Russia invades, we will take further steps to reinforce our presence in NATO, reassure our Allies, and deter further aggression. 9:12 President Biden: I will not pretend this will be painless. There could be impact on our energy prices, so we are taking active steps to alleviate the pressure on our own energy markets and offset rising prices. We?re coordinating with major enersy [sic] ? energy consumers and producers. We?re prepared to deploy all the tools and authority at our disposal to provide relief at the gas pump. And I will work with Congress on additional measures to help protect consumers and address the impact of prices at the pump. December 7, 2021 Overview: Victoria Nuland, the undersecretary of state for political affairs, testified at a Senate Foreign Relations Committee hearing on U.S. policy toward Russia. She addressed President Biden?s earlier call with Russian President Vladimir Putin and said that Russia would suffer severe consequences if it attacked Ukraine. Other topics included the use of sanctions if Russia invades Ukraine, the cooperation of NATO and U.S. allies, Russia?s use of energy during conflict, and the Nord Stream 2 Pipeline Clips 10:42 Victoria Nuland: Since 2014 The United States has provided Ukraine with $2.4 billion in security assistance including $450 million this year alone. 30:55 Sen. Todd Young (R-IN): President Putin and Foreign Minister Lavrov have repeatedly indicated that they seek to deny any potential path to NATO membership for Ukraine and other Eastern European countries. Does the administration view this demand is a valid issue for negotiation? Victoria Nuland: No we do not and President Biden made that point crystal clear to President Putin today that the issue of who joins NATO is an issue for NATO to decide it's an issue for applicant countries to decide that no other outside power will or may have a veto or a vote in those decisions. January 23, 2018 Clips 24:30 Former Vice President Biden: I?ll give you one concrete example. I was?not I, but it just happened to be that was the assignment I got. I got all the good ones. And so I got Ukraine. And I remember going over, convincing our team, our leaders to?convincing that we should be providing for loan guarantees. And I went over, I guess, the 12th, 13th time to Kiev. And I was supposed to announce that there was another billion-dollar loan guarantee. And I had gotten a commitment from Poroshenko and from Yatsenyuk that they would take action against the state prosecutor. And they didn?t. So they said they had?they were walking out to a press conference. I said, nah, I?m not going to?or, we?re not going to give you the billion dollars. They said, you have no authority. You?re not the president. The president said?I said, call him. (Laughter.) I said, I?m telling you, you?re not getting the billion dollars. I said, you?re not getting the billion. I?m going to be leaving here in, I think it was about six hours. I looked at them and said: I?m leaving in six hours. If the prosecutor is not fired, you?re not getting the money. Well, son of a bitch. (Laughter.) He got fired. And they put in place someone who was solid at the time. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
2022-02-27
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CD247: BIF: The Growth of US Railroads

The infrastructure law provides the most significant investment in passenger rail in U.S. history, but substantial hurdles - including a powerful cartel - stand firmly in the way of a real national network. In this episode, learn the ways the infrastructure law paves the way for a better future for passenger rail along with the significant obstacles that it failed to address. Executive Producer: Alex Smith Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish YouTube Video Contributors to Supply Chain Issues Matthew Jinoo Buck. February 4, 2022. The American Prospect. Merriam-Webster.com. 2022. January 6, 2020. The Houston Chronicle. Passenger and Freight Rail: The Current Status of the Rail Network and the Track Ahead. October 21, 2020. 116th Cong. U.S. Internal Revenue Service. December 31, 2019. Dangers of Monster Trains and Rail Profiteering Aaron Gordon. Mar 22, 2021. Vice. U.S. National Transportation Safety Board. Dec 29, 2020. Marybeth Luczak. Nov 30, 2020. Railway Age. U.S. Government Accountability Office. May 30, 2019. Christina M. Rudin-Brown, Sarah Harris, and Ari Rosberg. May 2019. Accident Analysis and Prevention. Jessica Murphy. Jan 19, 2018. BBC. Eric M. Johnson. Dec 6, 2017. Reuters. Cumberland Times-News. Aug 12, 2017. The Tribune Democrat. Jeffrey Alderton. Aug 5, 2017. The Tribune Democrat. Jeffrey Alderton. Aug 3, 2017. The Tribune Democrat. New Jersey Department of Health. Revised June 2011. Stephen Joiner. Feb 11, 2010 Popular Mechanics. Lobbying and Corruption 2020. Open Secrets. 2020. Senate.gov. 2020. Open Secrets. 2018. Open Secrets. 2020. Senate.gov. What you really pay for TV Gavin Bridge. Oct 27, 2020. Variety. Laws Sponsor: Rep. Peter DeFazio (D-OR) Status: Became Public Law No. 117-58 Law Outline Authorizes appropriations for Federal-Aid for highways at between $52 billion and $56 billion per year through fiscal year 2026 (over $273 billion total). Authorizes $300 million for for 2022, which increases by $100 million per year (maxing out at $700 million in 2026) Authorizes between $25 million and $30 million per year for "community resilience and evacuation route grants" on top of equal amounts for "at risk coastal infrastructure grants" Authorizes a total of $6.53 billion (from two funds) for the bridge investment program Caps the annual total funding from all laws (with many exceptions) that can be spent on Federal highway programs. Total through 2026: $300.3 billion Allows money from the surface transportation block grant program to be used for "planning and construction" of projects that "facilitate intermodel connections between emerging transportation technologies", specifically naming the hyperloop For projects that cost $100 million or more, before entering into a contract with a private company, the government partner has to conduct a "value for money analysis" of the partnership. Three years after a project is opened to traffic, the government partner has to review the compliance of the private company and either certify their compliance or report to the Secretary of Transportation the details of the violation. The certifications or violation notifications must be publicly available "in a form that does not disclose any proprietary or confidential business information." Restructures/eliminates offices at the Department of Transportation to create an Office of Multimodal Freight Infrastructure and Policy The person in charge will be appointed by the President and has to be confirmed by the Senate Authorizes "such sums as are necessary" Authorizes $2 billion per year until 2026 ($10 billion total) on projects that cost at least $100 million that include highways, bridges, freight rail, passenger rail, and public transportation projects. The Federal government will pay a maximum of 80% of the project costs. Authorizes $1.5 billion per year until 2026 ($7.5 billion) (which will expire after 3 years) for grants for local transportation projects in amounts between $1 million and $25 million for projects that include highway, bridge, public transportation, passenger and freight rail, port infrastructure, surface transportation at airports, and more. Authorizes $800 million per year through 2026 ($4 billion) for grants for projects that replace, remove, or repair culverts (water channels) that improve or restore passages for fish. Authorizes appropriations for Amtrak in the Northeast Corridor at between $1.1 billion and $1.57 billion per year through 2026 ($6.57 billion total). Authorizes appropriations for Amtrak in the National Network at between $2.2 billion and $3 billion per year through 2026 ($12.65 billion total). Authorizes $1 billion per year through 2026 ($5 billion total) for rail infrastructure safety improvement grants Authorizes $500 million per year through 2016 ($2.5 billion total) for the elimination of railroad crossings Authorizes $1.5 billion per year through 2026 ($7.5 billion total) for grants to states to expand intercity passenger rail grants Changes the goal of cooperation between Amtrak, governments, & other rail carriers from "to achieve a performance level sufficient to justify expending public money" to "in order to meet the intercity passenger rail needs of the United States" and expands the service areas beyond "urban" locations. Changes the goals of Amtrak to include... "Improving its contracts with rail carriers over whose tracks Amtrak operates." "Offering competitive fares" "Increasing revenue from the transportation of mail and express" "Encourages" Amtrak to make agreement with private companies that will generate additional revenue Requires that at least one Amtrak ticket agent works at each station, unless there is a commuter rail agent who has the authority to sell Amtrak tickets Removes the requirement that Amtrak's food and beverage service financially break even in order to be offered on its trains Creates a working group to make recommendations about how to improve the onboard food and beverage service The report must be complete within one year of the working group's formation After the report is complete, Amtrak must create a plan to implementing the working group's recommendations and/or tell Congress in writing why they will not implement the recommendations The plan can not include Amtrak employee layoffs Requires Amtrak to prohibit smoking - including electronic cigarettes - on all Amtrak trains Prohibits Amtrak from cutting or reducing service to a rail route if they receive adequate Federal funding for that route Amtrak will not be allowed to privatize the jobs previously performed by laid off union workers. Authorizes $15 million for an Amtrak study on bringing back long distance rail routes that were discontinued. Extends the amount of time the government will pay the operating costs of Amtrak or "any rail carrier" partnered with Amtrak or a government agency that provides passenger rail service from 3 years to 6 years, and pays higher percentages of the the costs. Creates a program to eliminate highway-rail crossings where vehicles are frequently stopped by trains Authorizes the construction on tunnels and bridges Requires the government agency in charge of the project to "obtain the necessary approvals from any impacted rail carriers or real property owners before proceeding with the construction of a project" Each grant will be for at least $1 million each The Federal government will pay no more than 80% of the project's cost Authorizes up to 10 grants per year valued at a maximum of $1 million each to plan and promote new Amtrak routes The grant recipient will have to match the grant by at least 50% of the eligible expenses The Secretary of Transportation will create a program for public entities to plan for expanded intercity passenger rail corridors (which are routes that are less than 750 miles), operated by Amtrak or private companies. When developing plans for corridors, the Secretary has to "consult" with "host railroads for the proposed corridor" The Administration of the Federal Railroad Administration would establish a "3 year blocked crossing portal" which would collect information about blocked crossing by trains from the public and first responders and provide every person submitting the complaint the contact information of the "relevant railroad" and would "encourage" them to complain to them too. Information collected would NOT be allowed to be used for any regulatory or enforcement purposes Reports to Congress will be created using the information collected The Secretary of Transportation will have to issue a rule requiring that all carriers that transport human passengers have an emergency lighting system that turns on when there is a power failure. Requires the Administrator of the Federal Railroad Administration to start pilot programs that were supposed to be conducted no later than 2010, which will test railroad employee scheduling rules designed to reduce employee fatigue. They will test... Assigning employees to shifts with 10 hours advance notice For employees subject to being on-call, having some shifts when those employees are not subject to being on-call. If the pilot programs have not begun by around March of 2023, a report will have to be submitted to Congress explaining the challenges, including "efforts to recruit participant railroads" The Comptroller General will conduct a study to determine the annual operation and maintenance costs for positive train control. Requires the Secretary of Transportation to provide notice and an opportunity for a hearing to "persons" who violate regulations requiring railroads to report information about railroad crossings. Eliminates the minimum $500 fine for violating the regulations Allows the Attorney General to take the railroad to court to collect the penalty but prohibits the amount of the civil penalty from being reviewed by the courts. Allows, but does not require, the Secretary of Transportation to create regulations governing the noise levels of trains that exceed 160 mph. Effective 3 years after the regulations are complete (maximum 5 years after this becomes law), freight cars will be prohibited from operating within the United States if it has sensitive technology originating from or if more than 15% of it is manufactured in... "A country of concern" (which is defined as "). Countries on the nonmarket economy list include... Armenia Azerbaijan Belarus China Georgia Kyrgyz Republic Moldova Tajikistan Turkmenistan Uzbekistan Vietnam A country identified by the United States Trade Representative on its , which in 2020 included... China Indonesia India Algeria Saudi Arabia Russia Ukraine Argentina Chile Venezuela State owned enterprises The Secretary of Transportation can assess fines between $100,000 and $250,000 per freight car. A company that has been found in violation 3 times can be kicked out of the United States transportation system until they are in compliance and have paid all their fines in full. These rules will apply regardless of what was agreed to in the USMCA trade agreement. 180 days after this becomes law, all railroad mechanics will be subject to drug testing, which can be conducted at random. Bills Sponsor: Rep. Don Young (R-AK) Status: Referred to Subcommittee on Railroads, Pipelines, and Hazardous Materials 03/14/2019 Hearings , Subcommittee on Railroads, Pipelines, and Hazardous Materials December 9, 2021 During the hearing, witnesses discussed plans for expanding intercity passenger rail in their states, regions, and networks, and how the bipartisan Infrastructure Investment and Jobs Act, which was recently signed into law, will support these efforts. Witnesses: Stephen Gardner, President, Amtrak David Kim, Secretary, California State Transportation Agency Kevin Corbett, President and CEO of New Jersey Transit, Co-Chair, Northeast Corridor Commission, On behalf of Northeast Corridor Commission Julie White, Deputy Secretary for Multimodal Transportation, North Carolina Department of Transportation, Commission Chair, Southeast Corridor Commission, On behalf of the North Carolina Department of Transportation and the Southeast Corridor Commission Ms. Donna DeMartino, Managing Director, Los Angeles ? San Diego ? San Luis Obispo Rail Corridor Agency Knox Ross, Mississippi Commission and Chair of the Southern Rail Commission Clips Rep. Rick Crawford: Finally, any potential expansion of the Amtrak system must include the full input of the freight railroads on capacity and track sharing issues. The ongoing supply chain crisis only further emphasizes the value of freight railroads and efficiently moving goods across the nation. The important work the freight railroads cannot be obstructed. Rep. Peter DeFazio The law is pretty clear: preference over freight transportation except in an emergency. Intercity and commuter rail passenger transportation provided for Amtrak has preference over freight transportation and using a rail line junction crossing unless the board orders otherwise under this subsection. Well, obviously that has not been observed. Stephen Gardner: With the $66 billion provided to the Federal Railroad Administration and Amtrak we and our partners can finally have the chance to renew, improve or replace antiquated assets like the century old bridges and tunnels in the Northeast, inaccessible stations around the nation, and our vintage trains. Stephen Gardner: Additionally, we'll continue to work collaboratively with our partners where they see value in working with other parties to deliver parts of their service and with new railroad entities that aim to develop or deliver their own service. We simply ask that key railroad laws like the Railway Labor Act and railway retirement apply to new entrants, that the federal government gets equity and accountability for investments it makes in private systems, and that any new services create connections with Amtrak's national network Stephen Gardner: We've been working very closely with a variety of host railroads on opportunities to expand, notably Burlington Northern Santa Fe and our work to expand the Heartland Flyer service between Texas and Oklahoma and potentially extend that North to Wichita, Newton, in Colorado along the front range also with BNSF, to look at opportunities there. With Canadian Pacific we've been having really good conversations about launching a new service between the Twin Cities, Milwaukee and Chicago. Similarly, I think there's opportunities for that Baton Rouge to New Orleans service that Mr. Ross mentioned. Rep. Chuy Garcia: You've each had different experiences with freight railroads as the host railroad for your respective services. What can Congress do to help you as you discuss expanding and improving passenger rail service with your freight railroad? You'll have about 15 seconds each. Knox Ross: Congressman, thank you. I think it's enforcing the will of Congress and the law that set up Amtrak in the beginning is, as the Chairman talked about, in the beginning, that people have a preference over freight. Now we understand that we all have to work together to do that. But we think there are many ways that Amtrak and other other hosts can work together with the fright to get this done, but the law has to be enforced. Julie White: I would say that the money in the IIJA is going to be really important as we work, for example, on the S Line it is an FRA grant that enables us to acquire that line from CSX and enables us to grow freight rail on it at the same time as passenger. Rep. Tim Burchett: Also understand that Amtrak is planning to either expand or build new rail corridors in 26 states across the country over the next 15 years and I was wondering: what makes you think Amtrak will turn a profit in any of those communities? Stephen Gardner: But I would be clear here that our expectation is that these corridors do require support from states and the federal government, that they produce real value and support a lot of important transportation needs. But we measure those not necessarily by the profit of the farebox, so to speak, even though Amtrak has the highest farebox recovery of any system in the United States by far in terms of rail systems, we believe that Amtrak mission is to create mobility, mobility that creates value. We do that with as little public funding as we can, but the current services do require support investment and I think that's fair. All transportation modes require investment. Rep. Tim Burchett: Since you mentioned that you needed more funding down the line, don't you think it'd be better to make your current service corridors more profit -- or just profitable before you build new ones in other parts of the country? , Subcommittee on Railroads, Pipelines, and Hazardous Materials May 6, 2021 This hearing featured twelve witnesses from a range of perspectives, exploring the opportunities and limitations associated with high-speed rail and emerging technologies, including regulatory oversight, technology readiness, project costs, and available federal resources. Witnesses: John Porcari, Former Deputy Secretary of the US Department of Transportation Rachel Smith, President and CEO of the Seattle Metropolitan Chamber of Commerce Phillip Washington, CEO of the Los Angeles County Metropolitan Transportation Authority Danielle Eckert, International Representative for the International Brotherhood of Electrical Workers Carbett "Trey" Duhon III, Judge in Waller County, TX Andy Kunz, President and CEO of the US High Speed Rail Association Carlos Aguilar, President and CEO of Texas Central High Speed Rail William Flynn, CEO of Amtrak Josh Giegel, CEO and Co-Founder of Virgin Hyperloop Andres de Leon, CEO of Hyperloop Transportation Technologies Michal Reininger, CEO of Brightline Trains Wayne Rogers, Chairman and CEO of Northeast Maglev Clips 8:37 - 8:48 Rep. Rick Crawford: Rail is also considered one of the most fuel efficient ways to move freight. On average freight rail can move one ton of freight over 470 miles on one gallon of fuel. Rep. Peter DeFazio: You know we have put aggregate with the essentially post World War Two, mostly the Eisenhower program, $2 trillion -- trillion -- into highways, invested by the federal government, a lot of money. But post World War Two $777 billion into aviation, airports, runways, air traffic control etc. And, and we have put about $90 billion total into rail. John Porcari: As I evaluated ways to increase capacity in the Baltimore-New York City corridor, these were my choices: I could add air capacity between BWI Thurgood Marshall Airport and New York with 90% federal funding for runway and taxiway improvements, I could add highway capacity on I-95 to New York with 80% federal funding, or add passenger rail capacity with zero federal funding for that 215 mile segment. A passenger rail trip makes far more sense than driving or flying, yet passenger rail capacity was the least likely alternative to be selected. So if you wonder why we have the unbalanced transportation system we have today, follow the money. John Porcari: It's an extraordinary statement of state priorities that the California High Speed Rail Authority's 2020 Business Plan anticipates 85% of its funding from state sources and only 15% federal funding for this project of national and regional significance. This is a remarkable state financial commitment and a clear declaration of the state's project priorities. Yet there's no ongoing sustained federal financial partner for this multi year program of projects. 23:54 - 24:28 John Porcari: To match the people carrying capacity of phase one of the high speed rail system, California would need to invest $122 to $199 billion towards building almost 4200 highway lane miles, the equivalent of a new six lane highway and the construction of 91 new airport gates and two new runways. The San Francisco-Los Angeles air loop is already the ninth busiest in the world, and the busiest air route in America. Doesn't it make sense to prioritize this finite and expensive airport capacity for trans continental and international flights? 24:28 - 24:40 John Porcari: For California the 120 to 209 billion of required highway and airport capacity as an alternative to high speed rail is double the 69 to 99 billion cost estimate for phase one of the high speed rail system. 25:05 - 25:18 John Porcari: Providing real transportation choices at the local and state level requires the establishment of a Passenger Rail Trust Fund on par with our Highway Trust Fund and Airport and Airway Trust Fund. 48:00 - 48:23 Trey Duhon: Texas Central promised this project was privately financed, and everything they've done today, including the EIS was based on that. So we say let it live or die in the free market and invest our tax dollars in more equitable transportation solutions. We should not have to pay for another train to nowhere while having our communities destroyed by the very tax dollars that we work hard to contribute. 49:48 - 50:42 Andy Kunz: High Speed Rail can unlock numerous ridership opportunities. Essential workers like teachers, police and firemen in the high price Silicon Valley could find affordable housing options with a short train ride to Merced or Fresno in California's Central Valley. Residents of Eugene, Oregon could access jobs in Portland's tech sector or booming recreational industry with a 35 minute commute. A Houston salesperson could prepare for an important client meeting in Dallas with dedicated Wi Fi and ample workspace while gliding past the notorious congestion on I-45. A college student in Atlanta could make it home for Thanksgiving in Charlotte while picking up grandma along the way in Greenville, South Carolina. International tourists visiting Disney World in Orlando could extend their vacation with a day trip to the Gulf beaches of the Greater Tampa Bay area. 51:41 - 54:58 Andy Kunz: High Speed Rail has an unmatched track record of safety. Japan, with the world's first high speed rail network, has carried millions of people over 50 years without a single fatality, in comparison as many as 40,000 Americans are killed every year in auto accidents on our highways. 52:22 - 52:45 Andy Kunz: China has invested over a trillion dollars in high speed rail, allowing them to build a world class 22,000 mile network in 14 years. Not taking a pause, China plans to construct another 21,000 miles of track over the next nine years. Modern infrastructure like this fuels China's explosive economic growth, making it challenging for us to compete with them in the 21st century. 52:46 - 53:10 Andy Kunz: On the other side of the globe, the United Kingdom is currently doubling their rail network with $120 billion investment. France has invested over $160 billion in constructing their system. Spain's 2000 mile High Speed Rail Network is the largest in Europe, costing more than 175 billion. These are considerable investments by nations that are similar in size to Texas. 1:08:00 - 1:09:00 Rep. Peter DeFazio: Are you aware of any high speed rail project in the world that isn't government subsidized? I know, Virgin in, you know, in Great Britain says, well, we make money. Yeah, you make money. You don't have to maintain the rail, the government does that, all you do is put a train set on it and run it. John Porcari: Yeah, that's a really important point, Mr. Chairman, virtually every one that I'm aware of in the world has had a very big public investment in the infrastructure itself, the operation by a private operator can be very profitable. I would point out that that is no different, conceptually from our airways system, for example, where federal taxpayer investments make possible the operations of our airlines, which in turn are profitable and no different than our very profitable trucking industry in the US, which is enabled by the public infrastructure investment of the highway system itself. 1:09:46 - 1:10:37 Philip Washington: The potential is very, very good to make that connection with the private railroad. And actually that is the plan. And we are working with that, that private railroad right now to do that. And that connection with the help of some twin bore tunnel will allow train speeds to be at anywhere from 180 to 200 miles an hour, getting from that high desert corridor to Los Angeles. And so it's a it's a huge, huge effort. It links up with high speed rail from the north as well, with the link up coming into Union Station as well. So I think the potential to link up both of these are very, very great. And we're working with both entities. 1:11:31 - 1:12:13 Philip Washington: Well one of our ideas very quickly is right now we have as you know, Mr. Chairman, assembly plants, assembly plants all over the country what we are proposing is a soup to nuts, all included manufacturing outfit in this country that manufactures trains from the ground up, forging steel, all of those things. So we have proposed an industrial park with suppliers on site as well to actually build again from the ground up, rail car passenger rail car vehicles and locomotives. It is the return of manufacturing to this country as we see it. 1:21:16 - 1:21:50 John Porcari: We have 111 year old tunnel in New York, we have a B&P tunnel in Baltimore, that Civil War era. Those are not the biggest obstacles. It is more a question of will. What we want to do as a country in infrastructure, we do, and we've never made rail, really the priority that that I think it needs to be. And we've never provided meaningful choices for the states to select rail and build a multi year rail program because we don't have the funding part of it. 1:21:55 - 1:22:19 John Porcari: Our passenger rail system in the US is moving from a survival mode to a growth mode. And I think that's a very healthy thing for the country. Whether you're talking about our cross country service, one of the coastal corridors or the Midwest service, all of that is really important. In just the same way we built the interstates, city pairs aggregating into a national system, we can really do that with the passenger rail system if we have the will. 1:27:13 - 1:27:41 Rep. Michelle Steel: My constituents are already taxed enough, with California state and local taxes and skyrocketing gas prices making it unaffordable to live. I just came back from Texas, their gas price was $2 something and we are paying over $4 in California. We must preserve our local economy by lowering taxes not raising them. And we must not continue throwing tax dollars into a high speed money pit. 1:30:53 - 1:31:11 Trey Duhon: The folks in Waller county the folks that I know, a family of four is not going to pay $1,000 To ride a train between Houston and Dallas, when they can get there on a $50 tank of gas an hour and a half later. It's just not going to happen. So it's not a mass transit solution, at least not for this corridor. 1:48:56 - 1:49:25 Andy Kunz: The other big thing that hasn't been mentioned is the the cost of people's time and waste sitting stuck in traffic or stuck in airports. It's estimated to be several 100 billion dollars a year. And then as a business person, time is money. So if all your people are taking all day to get anywhere your entire company is less competitive, especially against nations that actually have these efficient systems, and then they can out compete us 2:03:52 - 2:04:13 Seth Moulton: And I would just add, you know, we build high speed rail, no one's gonna force you to take it. You have that freedom of choice that Americans don't have today and yet travelers all around the world have. I don't understand why travelers in China should have so much more freedom than we do today. In America, high speed railway would rapidly rectify that 3:01:09 - 3:01:27 Josh Giegel: In 2014 I co-founded this company in a garage when Hyperloop was just an idea on a whiteboard. By late 2016 We began construction of our first full system test set, dev loop, north of Las Vegas. To date we've completed over 500 tests of our system. 3:01:38 - 3:01:48 Josh Giegel: Today we have approximately 300 employees and are the leading Hyperloop company in the world and the only company, the only company to have had passengers travel safely in a Hyperloop. 3:01:48 - 3:02:33 Josh Giegel: Hyperloop is a high speed surface transportation system. Travel occurs within a low pressure enclosure equivalent to 200,000 feet above sea level, in a vehicle pressurized to normal atmospheric conditions, much like a commercial aircraft. This, along with our proprietary magnetic levitation engine, allows us to reach and maintain airline speeds with significantly less energy than other modes of transportation. Not only is Hyperloop fast, it's a high capacity mass transit system capable of comfortably moving people and goods at 670 miles per hour with 50,000 passengers per hour per direction, on demand and direct to your destination, meaning no stops along the way. 3:02:54 - 3:02:58 Josh Giegel: We achieve all this on a fully electric system with no direct emissions. 3:11:34 - 3:11:53 Mike Reininger: Since our 2018 launch in Florida, we operate the only private high speed system in the US, showcasing the potential of American high speed passenger rail. We carried more than a million passengers in our first full year and learned a lot that is worth sharing from the investment of over $4 billion over the last 10 years. 3:12:45 - 3:12:57 Mike Reininger: We use existing road alignments and infrastructure corridors to leverage previous investments, reduce environmental impacts, lower costs, and speed execution as a basis for profitability. 3:13:00 - 3:13:28 Mike Reininger: In 2022, we will complete the extension into the Orlando International Airport, making our total route 235 miles, linking four of the largest cities in America's third largest state. 400 million annual trips occur between these cities today, 95% of them by car. By upgrading a freight railway first built in the 1890s and building along an Express Highway, we leveraged 130 years of previous investment to support our 21st century service. 3:13:31 - 3:13:51 Mike Reininger: Brightline West will connect Las Vegas to Los Angeles, where today 50 million annual trips and over 100 daily flights occur. Traveling on trains capable of speeds of 200 miles an hour using the I-15 corridor, but cutting the drive time in half, Brightline West's better option expects to serve 11 million annual riders. 3:14:56 - 3:15:08 Mike Reininger: Consider allowing private entities to become eligible parties for FRA grant programs by partnering with currently eligible applicants as a simple way to stretch direct government investment. 3:29:39 - 3:29:54 Rep. Rick Crawford: Amtrak announced plans to expand its routes including to several small cities where there doesn't appear to be enough demand or population to warrant those new lines. Can you guarantee that those new routes will be self sustaining and turn a profit or will they lose money? 3:38:42 - 3:38:55 Bill Flynn: 125 miles an hour on existing track infrastructure is high speed. The newest Acelas we ordered will have a top speed of 186 miles an hour. 3:36:46 - 3:37:05 Rep. Seth Moulton: What is the top speed of the Acela service? Bill Flynn: The Acela service in the southern network, Washington to New York, top speeds 135 miles an hour, and then in New York to Boston top speed of 150 miles an hour across different segments of the track. 4:11:57 - 4:12:30 Bill Flynn: When we think about NEPA and the other permitting processes that take place, and then ultimately into construction, on many major projects, we're talking a decade or more. So without the visibility and predictability and the certainty of funding, these projects are all affected, they ultimately become more high cost, and they take longer than they should. So if I were to recommend one policy action, creating a trust fund, or trust fund like structure, for intercity passenger rail would be key. , Subcommittee on Railroads, Pipelines, and Hazardous Materials March 10, 2021 The hearing explored the importance of rail to the U.S. economy and as a tool to mitigate climate change. Witnesses: Shannon Valentine, Secretary of Transportation, The Commonwealth of Virginia Caren Kraska, President/Chairman, Arkansas & Missouri Railroad Greg Regan, President, Transportation Trades Department, AFL-CIO Tom Williams, Group Vice President for Consumer Products, BNSF Railway Clips 18:17 - 18:50 Shannon Valentine: One of the worst rail bottlenecks, mentioned by Chairman DeFazio, along the east coast is at the Potomac River between Virginia and DC and it's called the long bridge which is owned by CSX. The bridge carries on passenger, commuter, and freight rail, nearly 80 trains a day and is at 98% capacity during peak periods. Due to these constraints, Virginia has been unable to expand passenger rail service, even though demand prior to the pandemic was reaching record highs. 18:50 - 19:42 Shannon Valentine: Virginia has been engaged in corridor planning studies, one of which was the I-95 corridor, which as you all know, is heavily congested. Even today as we emerge from this pandemic, traffic has returned to 90% of pre-pandemic levels. Through this study, we learned that adding just one lane in each direction for 50 miles would cost $12.5 billion. While the cost was staggering, the most sobering part of the analysis was that by the time that construction was complete, in 10 years, the corridor would be just as congested as it is today. That finding is what led Virginia to a mode that could provide the capacity at a third of the cost. 20:34 - 20:43 Shannon Valentine: According to APTA rail travel emits up to 83% fewer greenhouse gases than driving and up to 73% fewer than flying. 20:58 - 21:22 Shannon Valentine: Benefits can also be measured by increased access to jobs and improving the quality of life. The new service plan includes late night and weekend service because many essential jobs are not nine to five Monday through Friday. That is why we work to add trains leaving Washington in the late evening and on weekends, matching train schedules to the reality of our economy. 52:23 - 53:06* Rep. Peter DeFazio: I am concerned particularly when we have some railroads running trains as long as three miles. And they want to go to a single crew for a three mile long train. I asked the the former head of the FRA under Trump if the train broke down in Albany, Oregon and it's blocking every crossing through the city means no police, no fire, no ambulance, how long it's going to take the engineer to walk three miles from the front of the train to, say, the second car from the rear which is having a brake problem. And he said, Well, I don't know an hour. So you know there's some real concerns here that we have to pursue. 1:23:25 - 1:24:15 Shannon Valentine: When we first launched the intercity passenger rail, Virginia sponsored passenger rail, back in 2009, it really started with a pilot with $17 million for three years from Lynchburg, Virginia into DC into the new Northeast Corridor. And, and I had to make sure that we had 51,000 riders and we didn't know if we were going to be able to sustain it. And in that first year, we had 125,000 passengers. It always exceeded expectations for ridership and profitability. And today, that rail service which we now extend over to Roanoke, and we're working to get it to Blacksburg Christiansburg is really one of our most profitable rail services. In fact, probably in the country. It doesn't even need a subsidy because they're able to generate that kind of ridership. 2:10:21 - 2:12:11 Shannon Valentine: Our project, in my mind, is really the first step in creating a southeast high speed corridor, we have to build the bridge. In order to expand access, we need to be able to begin separating passenger and freight. And even before that is able to occur, building signings and creating the ability to move. We took a lot of lessons from a study called the DC to RDA again, it's the first part of that high speed southeast corridor. For us, it was recommended that we take an incremental approach rather than having a large 100 billion dollar project we're doing in increments. And so this is a $3.7 billion which is still going to help us over 10 years create hourly service between Richmond and DC. It was recommended that we use existing infrastructure and right of way so in our negotiations with CSX, we are acquiring 386 miles of right of way and 223 miles of track. We are also purchasing as part of this an S line. It's abandoned. It goes down into Ridgeway, North Carolina from Petersburg, Virginia, just south of Richmond. Because it's abandoned, we have a lot of opportunity for development for future phases or even higher speed rail. And we actually included part of Buckingham branch, it's an East West freight corridor that we would like to upgrade and protect for, for East West connection. All of these were incremental steps using existing right of way and tracks and achieving higher speeds where it was achievable. , Subcommittee on Railroads, Pipelines, and Hazardous Materials November 18, 2020 Witnesses: Ann D. Begeman, Chairman, Surface Transportation Board Martin J. Oberman, Vice Chairman, Surface Transportation Board Romayne C. Brown, Chair of the Board of Directors, Metra Stephen Gardner, Senior Executive Vice President, Amtrak Ian Jefferies, President and Chief Executive Officer, Association of American Railroads Randal O?Toole, Senior Fellow, Cato Institute Paul Skoutelas, President and Chief Executive Officer, American Public Transportation Association Clips 27:31 - 27:59 Daniel Lipinski: Unlike Amtrak, Metra and other commuter railroads do not have a statutory federal preference prioritizing commuter trains over freight trains. Additionally, commuter railroads generally do not have standing to bring cases before the STB. Therefore, commuter railroads have very limited leverage when it comes to trying to expand their service on freight rail lines and ensuring that freight railroads Do not delay commuter trains. 35:42 - 36:27 Rep. Peter DeFazio: In fact, Congress included provisions to fix Amtrak on time performance in 2008. That is when PRIA added a provisions directing the FRA and Amtrak to work to develop on time performance metric standards to be used as a basis for an STB investigation. Unfortunately, those benefits haven't been realized. It's been 12 years since PRIA was passed. If our eyes metric and standards for on time performance were published this last Monday 12 years later, for the second time, and after this long and unacceptable delay, I look forward to seeing an improvement on Amtrak's performance both in in my state and nationwide. 38:01 - 38:32 Rep. Peter DeFazio: Worldwide, I'm not aware of any railroads, passenger railroads, that make money, although Virgin claims they do in England because they don't have to maintain the tracks. Pretty easy to make money if all you have to do is put a train set on it, run it back and forth. That's not the major expense. So, you know, to say that we shouldn't be subsidizing commuter or we shouldn't be subsidizing Amtrak is, you know, is just saying you don't want to run trains. Because everywhere else in the world they're subsidized. 43:45 - 44:30 Ann Begeman: Most intercity passenger rail service is provided by Amtrak, which is statutorily excluded from many of the board's regulatory requirements applicable to freight carriers. However, with the enactment of the Passenger Rail Investment Improvement Act of 2008 (PRIA) which both Chairman Lipinski and Chairman De Fazio has have mentioned in their opening comments, as well as the Fixing America's Surface Transportation Act of 2015. FAST Act, the board assumed additional Amtrak oversight responsibilities, including the authority to conduct investigations under certain circumstances, and when appropriate, to award relief and identify reasonable measures to improve performance on passenger rail routes. 1:02:24 - 1:03:07 Stephen Gardner: Congress created Amtrak in 1970 to take on a job that today's freight railroads no longer wanted. In exchange for contracts assumption of these private railroads common carrier obligation for passengers and the associated operating losses for passenger service, the freights agreed to allow Amtrak to operate wherever and whenever it wanted over their lines, to provide Amtrak trains with dispatching preference over freight, and to empower what is now the STB to ensure Amtrak's access to the rail network. It's been nearly 50 years since the freight railroads and agreed eagerly to this bargain. And yet today, many of our hosts railroads fall short and fulfilling some of these key obligations 1:03:28 - 1:04:38 Stephen Gardner: Since our founding, Congress has had to clarify and amend the law to try and ensure host compliance. For example, by 1973, the freights had begun delaying Amtrak train so severely that Congress enshrined this promise of Amtrak preference into federal law, and in 2008, delays had gotten so bad that Congress created a new process to set Amtrak on time performance and provided the STB with the authority to investigate poor OTP. But for several reasons, these efforts haven't remedied the problems. For Amtrak and your constituents that has meant millions of delayed passengers and years of impediment as we try to add trains or start new routes to keep up with changing markets and demand. As the AAR are made clear and its litigation opposing the PRIA metrics and standards rule, many hosts see supporting our operation not as their obligation to the public, but as competition for the use of their infrastructure. But Amtrak wasn't created to relieve host railroads of their requirements to support passenger trains. It was created to help them reduce financial losses and ensure that passenger trains could still serve the country 1:04:38 - 1:05:15 Stephen Gardner: We need this committee's help to restore your original deal with the freights. For example you can provide us as you have in the moving forward Act, a way to enforce our existing rights of preference. You can make real Amtrak statutory ability to start new routes and add additional trains without arbitrary barriers. You can create an office of passenger rail within the STB and require them to use their investigative powers to pursue significant instances of for OTP. You can require more efficient STB processes to grant Amtrak access to hosts and fairly set any compensation and capital investment requirements. 1:06:19 - 1:07:57 Stephen Gardner: A rarely heralded fact is that the U.S. has the largest rail network in the world. And yet we use so little of it for intercity passenger rail service. A fundamental reason for this is our inability to gain quick, reasonable access to the network and receive reliable service that we are owed under law. This has effectively blocked our growth and left much of our nation underserved. City pairs like Los Angeles and Phoenix, or Atlanta to Nashville could clearly benefit from Amtrak service. Existing rail lines already connect them. Shouldn't Amtrak be serving these and many other similar corridors nationwide? 1:12:34 - 1:12:57 Randall O'Toole: Last year, the average American traveled more than 15,000 miles by automobile, more than 2000 Miles, road several 100 miles on buses, walked more than 100 Miles, rode 100 miles by urban rail, transit and bicycled 26 miles. Meanwhile, Amtrak carried the average American just 19 Miles. 1:13:35 - 1:13:55 Randall O'Toole: In 1970, the railroads' main problem was not money losing passenger trains, but over regulation by the federal and state governments. Regulation or not, passenger trains are unable to compete against airlines and automobiles. A 1958 Interstate Commerce Commission report concluded that there was no way to make passenger trains profitable. 1:14:52 - 1:15:20 Randall O'Toole: The 1970 collapse of Penn Central shook the industry. Congress should have responded by eliminating the over regulation that was stifling the railroads. Instead, it created Amtrak with the expectation that it would be a for profit corporation and that taking passenger trains off the railroads hands would save them from bankruptcy 50 years and more than $50 billion in operating subsidies later, we know that Amtrak isn't and never will be profitable. 1:15:40 - 1:16:10 Randall O'Toole: When Amtrak was created, average rail fares per passenger mile were two thirds of average airfares. Thanks to airline deregulation since then, inflation adjusted air fares have fallen by 60%. Even as Amtrak fares per passenger mile have doubled. Average Amtrak fares exceeded airfares by 1990 despite huge operating subsidies, or perhaps as has well predicted, because those subsidies encouraged inefficiencies. 1:16:50 - 1:17:15 Randall O'Toole: Today thanks to more efficient operations, rail routes that once saw only a handful of trains per day support 60, 70 or 80 or more freight trains a day. This sometimes leaves little room for Amtrak. Displacing a money making freight train with a money losing passenger train is especially unfair considering that so few people use a passenger trains, while so many rely on freight. 1:17:15 - 1:17:25 Randall O'Toole: Passenger trains are pretty, but they're an obsolete form of transportation. Efforts to give passenger trains preference over freight we'll harm more people than it will help. 2:42:40 - 2:43:50 Stephen Gardner: We think that the poor on time performance that many of our routes have is a significant impediment to ridership and revenue growth. It's quite apparent, many of our passengers, particularly on our long distance network, that serves Dunsmuir, for instance, you know their routes frequently experience significant delays, the number one cause of those delays are freight train interference. This is delays encountered, that Amtrak encounters when freight trains are run in front of us or otherwise dispatching decisions are made that prioritize the freight trains in front of Amtrak. And the reduction in reliability is clearly a problem for passengers with many hour delays. Often our whole long distance network is operating at 50% or less on time performance if you look at over the many past years. Even right now, through this period of COVID, where freight traffic has been down and we're only at 60% over the last 12 months on time performance for the entire long distance network. 2:52:44 - 2:53:23 Stephen Gardner: The difference between the US system and most of the international examples is that the infrastructure is publicly owned, publicly owned and developed in all of these nations, the nations that Mr. O'Toole mentioned, there is a rail infrastructure entity and they're developing it for both passenger and freight in some of those locations are optimized for passenger service primarily, that's for sure the case. China is a great example of a nation that's investing for both as a massive freight system and an incredible amount of investment for passenger rail. And again, they see high speed as a means of dealing with their very significant population and efficient way. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
2022-02-13
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CD246: BIF: Appalachian Chemical Storage

The Infrastructure Law that was signed in late 2021 funds the first phase of a huge infrastructure project called the Appalachian Storage Hub, which would consist of large gas processing plants, underground chemical storage facilities, and pipeline networks to connect them all together. In this episode, get the details - as many as are known - about the plans for this possible project. Is this a good idea for our country? Please Support Congressional Dish Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes : BIF The Infrastructure BILL : Lights Out: What Happened in Texas? : The EpiPen Hearing Negative Impacts of Natural Gas Susan Phillips. Dec 27, 2021. WHYY. CBS Philly. Oct 5, 2021. Forty-Fifth Statewide Investigating Grand Jury. Oct 5, 2021. attorneygeneral.gov Gunnar W. Schade. Aug 3, 2020. Texas A and M Today. Emily Henderson. Jul 15 2020. James Bruggers. Apr 21, 2020. Leo Weekly. Environmental Integrity Project. Jan 21, 2020. Britain Eakin and David Lee. Oct 31, 2017. Courthouse News Service. Josh Fox. 2010. Jan 13, 2010. Dallas Morning News. Texas Commission on Environmental Quality. Lettice Stuart. July 15, 1990. The New York Times. Peter Applebome. Nov 28, 1988. The New York Times. Appalachian Hub Kathy Hipple and Anne Keller. November 2021. Ohio River Valley Institute. Kathy Hipple and Anne Keller. November 2021. Ohio River Valley Institute. Kentucky Beyond Fossil Fuels. Last updated August 2021. Reuters Staff. Oct 9, 2020. Reuters. Keith Schneider. Jul 31, 2019. ProPublica. U.S. Department of Energy. Dec 4, 2018. U.S. Department of Energy. Nov 2018. Ohio Valley Environmental Coalition. Steve Horn. Feb 6, 2018. DeSmog. Open Secrets. Appalachian Regional Commission Baltimore Sun Editorial Board. Jan 07, 2019. Appalachian Regional Commission. The Manchins Alex Kotch. Jul 20, 2021. The Guardian. Liza Featherstone. 2021. Jacobin. Open Secrets. Images U.S. Department of Energy. Ethane Storage and Distribution Hub in the United States: Report to Congress. U.S. Department of Energy. Ethane Storage and Distribution Hub in the United States: Report to Congress. U.S. Department of Energy. Ethane Storage and Distribution Hub in the United States: Report to Congress. U.S. Department of Energy. Ethane Storage and Distribution Hub in the United States: Report to Congress. The Law Sponsor: Rep. Peter DeFazio Overview of provisions funding Appalachian Storage Hub : Appalachian Regional Commission Allows the Appalachian Regional Commission () to make grants, "enter into contracts, or otherwise provide amounts to individuals or entities" for projects to increase affordable access to broadband networks in the Appalachian region. Authorizes $20 million per year for the broadband projects through 2026. Allows the Appalachian Regional Commission to make grants, "enter into contracts, or otherwise provide amounts to individuals or entities" for projects to research the economic impact of an "ethane storage hub in the Appalachian region... such as a project with the capacity to store and distribute more than 100,000 barrels per day of hydrocarbon feedstock with a minimum gross heating value of 1,700 Btu per standard cubic foot" that will "help establish a regional energy hub in the Appalachian region for natural gas and natural gas liquids, including hydrogen produced from the steam methane reforming of natural gas feedstocks." Waives any other provision or law that limits Federal funding for this, and it allows the Appalachian Regional Commission to determine the Federal share. Allows the funding from this law to be combined with money from "any other Federal program" and from "any other source" Authorizes $5 million per year for analyzing this project Almost doubles the Appalachian Regional Commission's funding to $200 million per year through 2026 Bills Hearings August 29, 2016 Witnesses: Dr. Brian J. Anderson Director, West Virginia University Energy Institute Dr. John Deskins Director, Bureau for Business and Economic Research, West Virginia University Mr. Chad Earl Director of Marketing and Business Development, Orders Construction Company, Inc. Mr. Steven Hedrick President and Chief Executive Officer, Mid-Atlantic Technology, Research and Innovation Center Mr. Jeffery Keffer President and Chief Executive Officer, Longview Power, LLC Mr. Dan Poling Business Manager/Secretary Treasurer, District Council 53, International Union of Painters and Allied Trades Sound Clip Transcripts: 6:32 - 6:59 Sen. Shelley Moore Capito: So using ethane from Natural Gas as a feedstock means that chemical companies can choose to operate in West Virginia due to the enormous benefits of being right on top of the resource. That's why, again, I included language in the energy bill that will require the Department of Energy and Commerce to conduct a study to look at the feasibility of an ethane storage and distribution hub here in Appalachia, in West Virginia or in the region. 11:34 - 12:00 Sen. Joe Manchin: In 2016 Annual Energy Outlook, the EIA projected that even in a clean power plan scenario, coal and natural gas will make up approximately half of our electric generation mix in 2040. We talk about deniers you know, there's those who deny that there's climate change going on. And there's those who deny that we're going to be needing fossil for the next two, three or four decades. 12:50 - 13:33 Sen. Joe Manchin: Infrastructure, we must put the necessary infrastructure in place to take advantage of the robust opportunities that come from our abundant natural resources, while ensuring the reliability of our electric grid. And I will mention one thing. I've spoken to a lot of our state legislators. And I said, we've got to start thinking in terms of regional energy have Mid-Atlantic energy, regions such as the southwest, we should be looking at Pennsylvania and Ohio as part of this region, not the borders that separate us but basically the ability that we have to work together, build these pipelines that basically keep some of this product in this market area. To attract it, they say, build it and they will come. I truly believe if you have it, they will come but you have to have access to it. 18:42 - 19:00 Brian Anderson: Over the last 10 years production of ethane and propane at the Marcellus and Utica Shales have driven the cost of these very valuable raw materials to a price point well below global and national prices. Connecting this valuable resource to the national and global markets will take modern, robust infrastructure, the topic of this hearing. 19:01 - 19:13 Brian Anderson: I contend that the types of infrastructure necessary to benefit both the region and the nation is not only a reliable modern network of pipelines but also a robust regional system with natural gas liquid storage and distribution 20:12 - 20:28 Brian Anderson: With current production rates in the in the basin, around 500,000 barrels per day, the resource is certainly sufficient to support a renewed and robust chemical industry. That is, as long as there is modern and robust energy transportation infrastructure to support that. 21:42 - 22:32 Brian Anderson: The goal of this project is to provide essential data to support the development of the chemical manufacturing industry, promoting economic development. As evidenced by the industry's commitment to our project, developing storage and transportation infrastructure is a critical pathway to developing the industry in the region. Subsurface storage and distribution and a network of pipelines will benefit both the raw material producers -- the upstream oil and gas industry -- as well as the chemical industry by fostering a readily available and reliable network and research and source of natural gas liquids, developing a predictable price point of the commodity in the region. Currently, there is only one spot pricing for natural gas liquids in the United States and Gulf Coast. And thirdly, promoting regional investment in a more robust ecosystem for the industry. 38:55 - 39:50 Steven Hedrick: Rather than exporting additional ethane available via pipelines in the United States Gulf Coast to Europe, Asia or even Canada, it could be utilized here in the Appalachian Basin, here in America, to maximize the value potential of our raw materials. According to the publication the Natural Gas Intelligence, ethane accounts for more than 50% of the typical barrel in the Appalachian region, with exports now leading market spoke near Philadelphia. I think production has been increasing in the region. In fact, administering company MPLX's CEO Gary Heminger recently said with incremental ethane takeaway projects and the projected completion of a regional cracker facility, we anticipate reaching full utilization of our existing facilities. In other words, we need more infrastructure and companies like Shell need more elasticity in the supply chain in order to maximize the benefit of ethane. 39:48 - 40:41 Steven Hedrick: We would propose that the corridors naturally created by the Ohio and Kunal rivers be utilized as a platform for a substantial pipe system that will support the distribution of key raw material and intermediate constituents, including but not limited to, methane, ethane, ethylene, propane, propylene, and chlorine all of which are significant building blocks to the petrochemical industry and hence our society. We therefore must add substantial underground storage to the highest value of broadly used raw materials, specifically ethane, ethylene and propane and butane if we're able to create a built for purpose Appalachian storage hub. This can be safely and efficiently done and naturally occurring underground caverns in depleted natural gas extraction points, or even in depleted salt domes. In fact, the brightest minds in geological formations are currently studying the best locations for the hub. 1:34:03 - 1:35:40 Sen Joe Manchin: So I've come to the conclusion of this, the only way that we're ever going to is follow the dollars, the tax credits, extenders. They've been pouring more and more tax credits and extenders into renewables. And the only thing I'm going to say if that's the policy direction, and we can't collectively stop some of this other thing, when you have an administration desire to do something as they've done, we could at least say this, it makes all the sense in the world, if you're going to use these tax extenders, they call them tax extenders, they're credits, they give them credits if they do certain things in certain fields. So for moving to solar, or hydro, or wind and all this, those credits should only be used in a germane energy, that's where the losses were. So if the losses came from areas such as West Virginia and such as southwest Virginia, and such as Kentucky, those credits have to be used there. It makes all the sense in the world. We're gonna do every -- I'm gonna do everything I can just to shut the system down the next time, because trust me, they love tax credits. The wind people ain't letting tax credits go, solar'snot letting tax credits go. So I'm saying how do you argue against at least using the credits if you're going to get them? We'll build the best windmills, Danny. Our guys can build windmills. We can build solar, we can build anything you want. Just give us a chance. And that's what I am most upset about is no plan. There was no plan for a major policy shift in energy. And that's what we've got to correct I think, as quickly as possible to give us all a chance to survive in this tough area. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
2022-01-30
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CD245: New Year, Same Congress

Much media attention has been rightfully aimed at the recent failures of Congress, but there was, in fact, lawmaking happening at the end of 2021. In this episode, learn about some laws that didn't get much attention, including a law that solves a real problem and a few laws designed to economically punish China. We also take a look at what is happening in Congress as we start 2022 and look for opportunities for effective activism as we enter this Congressional election year. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Please take our ! Background Sources Recommended Congressional Dish Episodes : January 6: The Capitol Riot : American Rescue Plan : FirstNet Empowers AT&T : Fast Tracking Fast Track (Trade Promotion Authority) NDAA 2022 Jamie Dupree. Dec 9, 2021. Atlanta Journal-Constitution. Huawui Sanctions Alessandro Civati. Jan 10, 2022. LinkedIn. Craig S. Smith. Sept 29, 2021. IEEE Spectrum. Federal Communications Commission. Mar 12, 2021. Hadlee Simons. Sept 15, 2020. Android Authority. Julian E. Barnes and Adam Satariano. Mar 17, 2019. The New York Times. Build Back Better is Dead Joe Manchin. Dec 19, 2021. Fox News. Jamie Dupree. Dec 3, 2021. Regular Order. 2022 Spending Department of Homeland Security. Paul Kane. Jan 12, 2022. The Washington Post. Voting Rights and Election Reform Cristina Marcos. Jan 13, 2022. The Hill. Zachary B. Wolf. May 19, 2021. CNN. The Filibuster Lindsay Wise. Jan 10, 2022. The Wall Street Journal. Tim Lau. Apr 26, 2021. Brennan Center for Justice. Sarah A. Binder. Apr 22, 2010. Brookings. The Electoral Count Act Miles Parks. Jan 8, 2022. NPR. Laws and Resolutions Sponsor: Sen. Chuck Schumer (D-NY) Status: Signed into law by the President on Dec 16, 2021 Sponsor: Sen. Tim Kaine (D-VA) Status: Signed into law by the President on Dec 10, 2021 Status: Signed into law by the President on Dec 27, 2021 Sponsor: Amy Klobuchar (D-MN) Status: Signed into law by the President on Dec 22, 2021 Sponsor: Rep. Jim McGovern (D-MA) Status: Signed into law by the President on Dec 23, 2021 Sponsor: Rep. Steve Scalise (R-LA) Status: Signed into law by the President on Nov 11, 2021 Sponsor: Rep. Rosa DeLauro (D-CT) Status: Signed into law by the President on Dec 3, 2021 Tax credits for COVID For the COVID emergency declared on March 13, 2020 ?and for any subsequent major disaster declarations that supercedes such emergency declaration?, FEMA funds ?shall? be paid for 100% of disaster-related funeral expenses. For 2021, eligible taxpayers can get up to 50% of up to $8,000 in childcare costs (capped at $16,000 for multiple children under the age of 12) reimbursed via a refundable tax credit. The credit phases out for families with income higher than $400,000 per year. Allows self employed individuals to receive a tax credit for sick day related to COVID-19 from April 1, 2021 through September 30, 2021, including getting tested, quarantining, illness, and getting the vaccine. The number of days is capped at 10 and its capped at $200 per day. (=$2,000) Allows self employed individuals to receive a refundable tax credit for family leave for COVID-19 testing, illness, or vaccines. It?s capped at 60 days and $200 per day (=$12,000) Bills Sponsor: Rep. Terri Sewell (D-AL) Sponsor: Sen. Amy Klobuchar (D-MN) Sponsor: Rep. Donald Beyer (D-VA) Audio sources Sen. Kyrsten Sinema. Jan 13, 2022. C-SPAN. Sen. Krysten Sinema: I rise at a challenging divisive time for our nation. For years, America's politics have spiraled steadily downward into increasingly bitter tribal partisanship and our democracy has been strained. While that may sound abstract, it is a problem that hurts Americans in real, tangible ways. These deepening divisions hurt our ability to work together to create new job opportunities, protect the health and safety of our communities and country and to ensure everyday families get ahead. Our country's divisions have now fueled efforts in several states that will make it more difficult for Americans to vote and undermine faith that all Americans should have in our elections in our democracy. These state laws have no place in a nation whose government is formed by free, fair and open elections. I share the concerns of civil rights advocates and others I've heard from in recent months about these state laws. I strongly support those efforts to contest these laws and court and to invest significant resources into these states to better organize and stop efforts to restrict access at the ballot box. And I strongly support and will continue to vote for legislative responses to address these state laws, including the freedom to vote Act, and the John Lewis voting rights Advancement Act that the Senate is currently considering. And while I continue to support these bills, I will not support separate actions that were sent the underlying disease of division infecting our country. The debate over the Senate 60 vote threshold shines a light on our broader challenges. There is no need for me to restate my long standing support for the 60 vote threshold to pass legislation. There's no need for me to restate its role protecting our country from wild reversals and federal policy. Eliminating the 60 vote threshold will simply guarantee that we lose a critical tool that we need to safeguard our democracy from threats in the years to come. Our mandate, it seems evident to me work together and get stuff done for America. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
2022-01-16
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CD244: Keeping Ukraine

Since the beginning of December, news outlets around the world have been covering a possible Russian invasion of Ukraine. In this episode, get the full back story on the civil war that has been raging in Ukraine since 2014, learn what role our government has played in the conflict, and hear Victoria Nuland - one of the highest ranking officials in the Biden administration's State Department - testify to the Senate Foreign Affairs Committee about the Biden administration's plans if Russia decides to use its military to invade Ukraine. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes : Lights Out: What Happened in Texas? : Target Belarus : Impeachment: The Evidence : National Endowment for Democracy : Combating Russia (NDAA 2018) LIVE : Sanctions ? Russia, North Korea & Iran : Ukraine Aid Bill : What Do We Want In Ukraine? : Let?s Gut the STOCK Act Articles, Documents, and Websites Insider. TurkStream. Western Balkans Investment Framework. Amber Infrastructure Group. Three Seas. Three Seas. State Property Fund of Ukraine. State Property Fund of Ukraine. State Property Fund of Ukraine. Stephanie. December 14, 2021. News in 24. Kenny Stancil. December 13, 2021. Common Dreams. The Kremlin. December 7, 2021. Maxine Joselow and Alexandra Ellerbeck. December 6, 2021. The Washington Post. Medea Benjamin and Nicolas J. S. Davies. November 23, 2021. Consortium News. International Monetary Fund (IMF). November 22, 2021. Nathan Rott. November 17, 2021. NPR. Anatol Lieven. November 15, 2021. The Nation. John Vandiver and Alison Bath. November 12, 2021. Military.com Andrew E. Kramer. November 3, 2021. The New York Times. Anton Troianovski and Julian E. Barnes. November 2, 2021. The New York Times. Anton Troianovski and David E. Sanger. October 31, 2021. The New York Times. David E. Sanger. October 25, 2021. The New York Times. Artin DerSimonian. October 19, 2021. Responsible Statecraft. Andrew E. Kramer. October 18, 2021. The New York Times. Mark Episkopos. October 16, 2021. The National Interest. Reuters. September 10, 2021. Antony Blinken. August 20, 2021. U.S. Department of State.](https://www.state.gov/imposition-of-sanctions-in-connection-with-nord-stream-2/) Paul Belkin and Hibbah Kaileh. July 1, 2021. Congressional Research Service. Henrik B. L. Larsen. June 8, 2021. War on the Rocks. NATO. April 26, 2021. David E. Sanger and Andrew E. Kramer. April 15, 2021. The New York Times. The White House. April 15, 2021. The White House. April 15, 2021. Reutuers. April 13, 2021. Vladimir Isachenkov. April 9, 2021. AP News. January 20, 2021. Hans M. Kristensen and Matt Korda. January 12, 2021. The Bulletin. Andrew Feinberg. January 9, 2021. The Independent. David E. Sanger, Nicole Perlroth and Julian E. Barnes. January 2, 2021. The New York Times. David E. Sanger, Nicole Perlroth and Eric Schmitt. December 14, 2020. The New York Times. Mark Episkopos. November 11, 2020. The National Interest. Government Accountability Office. October 21, 2020. Anthony B. Cavender, Thomas A. Campbell, Dan LeFort, Paul S. Marston. December 23, 2015. Pillsbury Law. Robert Parry. July 15, 2015. Truthout. Robert Parry. March 19, 2015. Consortium News. February 12, 2015. Financial Times. NATO. May 8, 2014. Seumas Milne. April 30, 2014. The Guardian. David Morrison. Updated May 9, 2014. HuffPost. US Energy Information Administration. March 15, 2014. Energy Central. Robert Parry. February 27, 2014. Common Dreams. February 7, 2014. BBC News. Adam Taylor. December 16, 2013. Insider. Brian Whelan. December 16, 2013. Channel 4 News. Guardian staff and agencies. December 15, 2013. The Guardian. International Monetary Fund (IMF). October 31, 2013. Carl Gershman. September 26, 2013. The Washington Post. Amanda Winkler. November 14, 2011. The Christian Post. Images Bills Sponsor: Sen. Scott, Rick [R-FL] Audio Sources December 8, 2021 President Biden briefly stopped and spoke with reporters as he departed the White House for an event in Kansas City, Missouri. He began by addressing the Omicron variant, saying that the Pfizer vaccine is showing encouraging results against the COVID-19 variant. When asked about Russian President Putin and Ukraine, President Biden said if Putin were to invade Ukraine, there ?will be severe consequences.? He went on to say that putting U.S. troops on the ground in Ukraine is currently ?not in the cards.? close Report Video Issue Clips Biden: We hope by Friday, we're going to be able to say and announce to you that we're having meetings at a higher level, not just with us, but with at least four of our major NATO allies and Russia to discuss the future of Russia's concerns relative to NATO writ large. And whether or not we can work out any accommodations as it relates to bringing down the temperature along the eastern front. Biden: We have a moral obligation and a legal obligation to our NATO allies if they were to attack under Article Five, it's a sacred obligation. That obligation does not extend to NATO, I mean to Ukraine, but it would depend upon what the rest of the NATO countries were willing to do as well. But the idea of the United States is going to unilaterally use force to confront Russia invading Ukraine is not in the cards right now. Biden: Meeting with Putin. I was very straightforward. There were no minced words. It was polite, but I made it very clear, if in fact, he invades Ukraine, there will be severe consequences, severe consequences. Economic consequences, like none he's ever seen or ever had been seen in terms of ease and flows. He knows his immediate response was he understood that and I indicated I knew he would respond. But beyond that, if in fact, we would probably also be required to reinforce our presence in NATO countries to reassure particularly those on the Eastern Front. In addition to that, I made it clear that we would provide the defensive capability to the Ukrainians as well. December 7, 2021 Victoria Nuland, the undersecretary of state for political affairs, testified at a Senate Foreign Relations Committee hearing on U.S. policy toward Russia. She addressed President Biden?s earlier call with Russian President Vladimir Putin and said that Russia would suffer severe consequences if it attacked Ukraine. Other topics included the use of sanctions if Russia invades Ukraine, the cooperation of NATO and U.S. allies, Russia?s use of energy during conflict, and the Nord Stream 2 Pipeline 00:20 Sen. Bob Menendez (D-NJ): As we meet here today Russia is engaged in one of the most significant troop buildups that we have seen along Ukraine's border. To nyone paying attention, this looks like more than posturing, more than attention seeking. The Kremlin's actions clearly pose a real threat of war. 00:40 Sen. Bob Menendez (D-NJ): I want to be crystal clear to those listening to this hearing in Moscow, Kiev and other capitals around the world. A Russian invasion will trigger devastating economic sanctions the likes of which we have never seen before. 00:59 Sen. Bob Menendez (D-NJ): I proposed a suite of options last month in an amendment to the NDA. The Russian banking sector would be wiped out, sovereign debt would be blocked, Russia would be removed from the Swift payment system, sectoral sanctions would cripple the Russian economy. Putin himself as well as his inner circle would lose access to bank accounts in the West. Russia would effectively be cut off and isolated from the international economic system. Let me be clear, these are not run of the mill sanctions. What is being discussed is at the maximum end of the spectrum, or as I have called it the mother of all sanctions, and I hope that we can come together in a bipartisan way to find a legislative path forward soon, so that we can achieve that. 1:51 Sen. Bob Menendez (D-NJ): If Putin invades Ukraine the implications will be devastating for the Russian economy but also for the Russian people. 2:24 Sen. Bob Menendez (D-NJ): But is the Kremlin really ready to face a bloody, persistent and drawn out insurgency? How many body bags is Putin willing to accept? 6:03 Sen James Risch (R-ID): This is a clearly clearly bipartisan matter. 7:40 Victoria Nuland: First, let me review what we are seeing. Over the past six weeks, Russia has stepped up planning for potential further military action in Ukraine, positioning close to 100,000 troops around Ukraine's eastern and northern borders and from the south via the Crimean peninsula. Russian plans and positioning of assets also include the means to destabilize Ukraine from within, and an aggressive information operation and an attempt to undermine Ukrainian stability and social cohesion and to pin the blame for any potential escalation on Kiev, and on NATO nations including the United States. Russia's military and intelligence services are continuing to develop the capability to act decisively in Ukraine when ordered to do so, potentially in early 2022. The intended force, if fully mobilized, would be twice the size of what we saw last spring, including approximately 100 battalion tactical groups, or nearly all of Russia's ready ground forces based west of the Urals. We don't know whether President Putin has made a decision to attack Ukraine or to overthrow its government. But we do know he's building the capacity to do so. 10:42 Victoria Nuland: Since 2014 The United States has provided Ukraine with $2.4 billion in security assistance including $450 million this year alone 12:00 Victoria Nuland: Diplomacy remains the best route to settle the conflict in Donbas and address any other problems or grievances. The Minsk agreements offer the best basis for negotiations and the US is prepared to support a revived effort if the parties welcome that. 15:16 Victoria Nuland: You might have seen a press conference today that commission Chairwoman van der Laan gave in Brussels in which she made absolutely clear that the EU would also join in very consequential economic measures of the kind that they have not employed before. 23:26 Victoria Nuland: It's also important, I think, for President Putin to understand as the President conveyed to him today, that this will be different than it was in 2014. If he goes in you will recall then that our sanctions escalated somewhat gradually as he didn't stop moving. This time the intent is to make clear that the initial sanctions in response to any further aggressive moves in Ukraine will be extremely significant and isolating for Russia and for Russian business and for the Russian people. 24:51 Victoria Nuland: As you know, energy is the cash cow that enables these kinds of military deployments. So Putin needs the energy to flow as as much as the consumers need it. But more broadly, we have been counseling Europe for almost a decade now to reduce its dependence on Russian energy, including our opposition to Nord Stream 2 and our opposition to Nord Stream 1 and our opposition to to TurkStream and TurkStream 2 and to have come to find alternative sources of hydrocarbons but also to continue their efforts to go green and end their dependencies. 30:55 Sen. Todd Young (R-IN): President Putin and Foreign Minister Lavrov have repeatedly indicated that they seek to deny any potential path to NATO membership for Ukraine and other Eastern European countries. Does the administration view this demand is a valid issue for negotiation? Victoria Nuland: No we do not and President Biden made that point crystal clear to President Putin today that the issue of who joins NATO is an issue for NATO to decide it's an issue for applicant countries to decide that no other outside power will or may have a veto or a vote in those decisions. 32:22 Jeanne Shaheen (D-NH): Senator Portman and I offered an amendment to this year's NDAA in that vein to increase military assistance and raise the amount of assistance that could go to lethal weapons. 33:21 Victoria Nuland: But we will not be shy about coming to you as we as we need support and the bipartisan spirit here is really gratifying. 34:08 Victoria Nuland: At the NATO ministerial last week, there was a commitment among allies that we needed more advice and more options from our NATO military authorities with regard to the consequences of any move by Russia deeper into Ukraine and what that would mean for the eastern edge of the alliance and what it would mean about our need to be more forward deployed in the east. 34:44 Jeanne Shaheen (D-NH): Belarus now that it is seems to be totally within Russia's control also presents another front for the potential for Russia to invade Ukraine. Can you speak to whether we view what's happening in Belarus in that way? I know that Ukrainians view it that way because we heard that when we were in Halifax for the international security forum and met with some Ukrainian officials. Victoria Nuland: Well, as as you know, Senator, the situation in Belarus is just tragic and really concerning in many, many ways, which is why the administration along with the European Union in a multilateral way increased sanctions just last week, including blocking the sale to us or to Europe of one of the great sources of Lukashenko has money potash, etc, and sanction some dozens more Belarusians responsible for the violence and intimidation there and particularly now for the weaponization of migrants pushing you know, accepting them from third countries and then pushing them against the EU's border in a very cynical and dangerous way. But I think you're talking about the potential as Lukashenko becomes more and more dependent on the Kremlin and gives up more and more of Belarus is sovereignty, something that he told his people he would never do that Russia could actually use Belarusian territory to march on Ukraine and or mask, its forces as Belarusian forces. All of those -- Those are both things that that we are watching, and it was particularly concerning to see President Lukashenko would make a change in his own posture with regard to Crimea. He had long declined to recognize Russia Russia's claim on Crimea, but he changed tack a week ago which is concerning. 39:08 Sen. Ron Johnson (R-WI): If there's one thing that Vladimir Putin aught to understand is how unified we are. I mean, there are many things that divide us politically in this country. But when it comes to pushing back on Russian aggression, supporting countries like Ukraine that are trying to develop their freedom, free themselves from their legacy of corruption from their former involvement with the Soviet Union, we are very strongly united. 39:56 Sen. Ron Johnson (R-WI): What we impose on them and how and how harmful it would be to Russia, you know, unfortunately to Russian people. 40:36 Victoria Nuland: What we're talking about would amount to essentially isolating Russia completely from the global financial system with all of the fallout that that would entail for Russian business, for the Russian people, for their ability to, to work and travel and trade. 41:41 Sen. Ron Johnson (R-WI): I can't think of a more powerful way to punish Russian aggression than by rolling back what progress has been made, and if at all possible, prevent the Nord Stream 2 from ever being completed. Is that something that is being discussed with allies is that something's being contemplated? Victoria Nuland: Absolutely. And as if, as you recall from the July U.S.-German statement that was very much in that statement that if that any moves, Russian aggression against Ukraine would have a direct impact on the pipeline, and that is our expectation and the conversation that we're having. Sen. Ron Johnson (R-WI): So again, direct impact is one thing, but I'm literally talking about rolling back the pipeline. Loosely define that but I mean, taking action that will prevent it from ever becoming operational. Victoria Nuland: I think if President Putin moves on Ukraine, our expectation is that the pipeline will be suspended. Sen. Ron Johnson (R-WI): Well, I certainly hope that the Senate Foreign Relations Committee would take up legislation to go beyond just suspending it but from ending it permanently. 44:28 Victoria Nuland: I think we can, and I know this is close to your heart as well, need to do better in our Global Engagement Center and in the way we speak to audiences around the world and particularly on these kinds of subjects. 55:04 Sen. Chris Murphy (D-CT): But something different has happened in that country since what has been referred to as the Revolution of Dignity. I got the chance to be there on the Maidan during the midst of that revolution with you and Senator McCain. 58:56 Sen. Chris Murphy (D-CT): The Three Seas Initiative is a really important initiative linking essentially the ring of countries that are either former republics or satellite states of the Soviet Union together. They're begging for US participation in their projects necessary to make them more energy independent of Russia. Isn't this an opportunity for the United States to step up and take some of these customers away from Russia's gas station? Victoria Nuland: Absolutely, as we have been doing with our support for more LNG terminals around Europe for many years, as we are doing now in our support for, you know, green alternatives, not just in the United States, but in Europe as well. And many, many US companies are involved with that. But that particular belt of three C's countries is absolutely crucial, as you've said. 1:11:19 Sen. Rob Portman (R-OH): I visited to Maidan in 2014. The tires were still smoldering and the Revolution of Dignity changed everything. You know, Ukraine decided to turn to us and to the West, and to freedom and democracy. And it was a momentous decision. They chose to stand with us. And now it's our turn to stand with them. And we've done that over the years. I mean, if you look at what happened with regard to the Ukraine security assistance initiative, which I co authored. Over the past six years, the United States has transferred defense articles, conducted training with Ukrainian military. We have been very engaged. 1:12:05 Sen. Rob Portman (R-OH): This week we have the NDAA likely to be voted on and likely it will include an increase in that lethal defensive funding. 1:12:14 Sen. Rob Portman (R-OH): What defensive weapons has Ukraine ask for and what is the State Department willing to provide them under an expedited process? 1:18:44 Sen. Tim Kaine (D-VA): My concern is this: if the United States and the West's response to a military invasion is sanctions, but no military response, obviously, we're providing military aid to Ukraine. And we've been generous in that way. But if we are not willing to help a Ukrainian military, that's 50,000 people matched up against Russia, I would think that China would conclude, boy, the West sure, I'm going to come to the aid of Taiwan, if we were to do something on Taiwan. Because China would conclude, we're much more militarily powerful than Russia is. And the status questions about Taiwan and sovereignty are a little bit murkier than those about Ukraine. And there's no NATO in the Indo Pacific, we have allies in the Indo Pacific but we don't have a NATO with a charter, with a self defense article. I think China would determine, if the West responds to a military invasion went as far as sanctions but no further, that the United States and other nations would be extremely unlikely to use military force to counter a military invasion of Taiwan. And I think Taiwan would likely conclude the same thing. So I'm very concerned about that. And I wonder, is that a fair concern that I have about how the Chinese and the Taiwanese would view the West's unwillingness to provide more significant military support to stop an invasion by Russia? Is my concern a fair one? Or is my concern overwrought? Victoria Nuland: Senator, in this setting, I would simply say that this is a moment of testing. And I believe that both autocrats around the world and our friends around the world will watch extremely carefully what we do, and it will have implications for generations. Sen. Tim Kaine (D-VA): And those and those implications could go far beyond Ukraine. Victoria Nuland: They could go well beyond Europe. Yes. 1:22:00 Sen. Marco Rubio (R-FL): Then I would imagine that he's already been publicly messaging what his asks are. The first is that we would pull back NATO forces from anywhere near their western border. The second is to completely rule out the admission probably not just of Ukraine, but Georgia as a member of NATO. And the third is to stop arming Ukraine. Of those three conditions that he's publicly messaged already, would the United States agreed to any of those three? Victoria Nuland: All of those would be unacceptable. 1:41:11 Victoria Nuland: And in fact you could argue that in the Donbas he did take control of some 40% of Ukraine's coal reserves which were a major energy input 1:42:04 Sen. Bob Menendez (D-NJ): I hope the one thing that anyone in the world who is watching this hearing today takes away is that even on some of the most contentious issues of the day, on this one, there is overwhelming, broad, bipartisan support for Ukraine there is overwhelming bipartisan support for its territorial integrity, there is overwhelming bipartisan support for swift and robust action. And after conversations with some of the members of the committee, I look to galvanize that in some tangible way legislatively as we wait for the days ahead as to what may or may not happen. August 31, 2021 Secretary Lloyd Austin: As you know sir, President Biden has approved a new $60 million security assistance package including Javelin anti-armor systems and more to enable Ukraine to better defend itself against Russian aggression. Secretary Lloyd Austin: Now this department is committed to strengthening our Strategic Defense Partnership. The US Ukraine strategic defense framework that Minister Tehran and I will sign today enhances our cooperation and advances our shared priorities, such as ensuring that our bilateral security cooperation continues to help Ukraine countering Russian aggression and implementing defense and defense industry reforms in support of Ukraine's NATO membership aspirations, and deepening our cooperation in such areas as Black Sea security, cyber defense and intel sharing. June 30, 2021 Russian President Vladimir Putin held his annual call-in question and answer session with citizens from around the country. During this 70-minute portion, he answered questions on relations with Ukraine, the European Union, and the United States, reiterating that whatever sanctions are imposed against Russia, his country?s economy will prevail. Clips Putin: I have already said that it is impossible and it makes no sense to try to restore the Soviet Union by a number of reasons and looking at the demographic processes in a number of former Soviet republic, so it's unreasonable effort to do because we can face a lot of social problems that will be possible to resolve and some issues like the ethnic groups, in various regions, but what should we do about Russia itself without the geopolitical realities and about our internal development? Putin: Why is Ukraine not on the list of countries who are Russia's adversaries? Another question: are you going to meet with Zelensky? Well, why Ukriane is not on the list of adversaries? That's because I do not think that the Ukrainian people are our adversaries. I said it many times and I will say it again. The Ukrainians and Russians, that's one people, one nation. Putin: What I'm worried about is a fundamental thing. They are trying to open up military bases near or inside Ukraine. Making the territory of Ukraine, the territory that's close on the border with Russia a military platform for other countries is a threat to the security of Russia. And this is what worries us. This is what we have to think about. January 23, 2018 Clips 00:06:15 Joe Biden: They cannot compete against a unified West. I think that is Putin?s judgment. And so everything he can do to dismantle the post-World War II liberal world order, including NATO and the EU, I think, is viewed as in their immediate self-interest. 00:24:15 Haass: In the piece, the two of you say that there?s no truth that the United States?unlike what Putin seems to believe or say, that the U.S. is seeking regime change in Russia. So the question I have is, should we be? And if not, if we shouldn?t be seeking regime change, what should we be seeking in the way of political change inside Russia? What?s an appropriate agenda for the United States vis-à-vis Russia, internally? 00:24:30 Biden: I?ll give you one concrete example. I was?not I, but it just happened to be that was the assignment I got. I got all the good ones. And so I got Ukraine. And I remember going over, convincing our team, our leaders to?convincing that we should be providing for loan guarantees. And I went over, I guess, the 12th, 13th time to Kiev. And I was supposed to announce that there was another billion-dollar loan guarantee. And I had gotten a commitment from Poroshenko and from Yatsenyuk that they would take action against the state prosecutor. And they didn?t. So they said they had?they were walking out to a press conference. I said, nah, I?m not going to?or, we?re not going to give you the billion dollars. They said, you have no authority. You?re not the president. The president said?I said, call him. (Laughter.) I said, I?m telling you, you?re not getting the billion dollars. I said, you?re not getting the billion. I?m going to be leaving here in, I think it was about six hours. I looked at them and said: I?m leaving in six hours. If the prosecutor is not fired, you?re not getting the money. Well, son of a bitch. (Laughter.) He got fired. And they put in place someone who was solid at the time. January 12, 2017 00:20:15 Sen. McCain: For seven decades, the United States has played a unique role in the world. We?ve not only put America first, but we?ve done so by maintaining and advancing a world order that has expanded security, prosperity, and freedom. This has required our alliances, our trade, our diplomacy, our values, but most of all, our military for when would-be aggressors aspire to threaten world order. It?s the global striking power of America?s armed forces that must deter or thwart their ambitions. Too many Americans, too many Americans seem to have forgotten this in recent years. Too many have forgotten that our world order is not self-sustaining. Too many have forgotten that while the threats we face may not have purely military solutions, they all have military dimensions. In short, too many have forgotten that hard power matters?having it, threatening it, leveraging it for diplomacy, and, at times, using it. Fairly or not, there is a perception around the world that America is weak and distracted, and that has only emboldened our adversaries to challenge the current world order. February 6, 2014. Jen Psaki, State Department Spokesperson 0:19 Reporter: Can you say whether you?if this call is a recording of an authentic conversation between Assistant Secretary Nuland and Ambassador Pyatt? Jen Psaki: Well, I?m not going to confirm or outline details. I understand there are a lot of reports out there, and there?s a recording out there, but I?m not going to confirm a private diplomatic conversation. Reporter: So you are not saying that you believe this is a?you think this is not authentic? You think this is a? Psaki: It?s not an accusation I?m making. I?m just not going to confirm the specifics of it. Reporter: Well, you can?t even say whether there was a?that this call?you believe that this call, you believe that this recording is a recording of a real telephone call? Psaki: I didn?t say it was inauthentic. I think we can leave it at that. Reporter: Okay, so, you?re allowing the fact that it is authentic. Psaki: Yes. Reporter: ?Yes,? okay. Psaki: Do you have a question about it? February 4, 2014 Nuland: Good. So I don?t think Klitsch [Vitali Klitschko] should go into the government. I don?t think it?s necessary, I don?t think it?s a good idea. Pyatt: Yeah, I mean I guess, in terms of him not going into the government, just sort of letting him stay out and do his political homework and stuff. I?m just thinking in terms of, sort of, the process moving ahead, we want to keep the moderate Democrats together. The problem is going to be Tyahnybok and his guys and I?m sure that?s part of what Yanukovych is calculating on all this. Nuland: I think Yatz [Arseniy Yatsenyuk] is the guy with the economic experience, the governing experience. He?s the guy. What he needs is Klitsch [Vitali Klitschko] And Tyahnybok On the outside, he needs to be talking to them four times a week. You know, I just think Klitsch [Vitali Klitschko] Going in he?s going to be at that level working for Yatsenyuk it?s just not gonna work. Pyatt: We want to get someone out here with and international personality to come out here and help to midwife this thing. And then the other issue is some kind of outreach to Yanukovych. We?ll probably regroup on that tomorrow as we see how things fall into place. Nuland: So on that piece, Jeff, I wrote the note, Sullivan?s come back to me saying ?you need Biden,? and I said probably tomorrow for an attaboy and get the deeds to stick, Biden?s willing. Pyatt Great. C-SPAN December 19, 2013. 00:16:45 McCain: If Ukraine?s political crisis persists or deepens, which is a real possibility, we must support creative Ukrainian efforts to resolve it. Senator Murphy and I heard a few such ideas last weekend?from holding early elections, as the opposition is now demanding, to the institution of a technocratic government with a mandate to make the difficult reforms required for Ukraine?s long-term economic health and sustainable development. Decisions such as these are for Ukrainians to make?no one else?and if they request our assistance, we should provide it where possible. Finally, we must encourage the European Union and the IMF to keep their doors open to Ukraine. Ultimately, the support of both institutions is indispensable for Ukraine?s future. And eventually, a Ukrainian President, either this one or a future one, will be prepared to accept the fundamental choice facing the country, which is this: While there are real short-term costs to the political and economic reforms required for IMF assistance and EU integration, and while President Putin will likely add to these costs by retaliating against Ukraine?s economy, the long-term benefits for Ukraine in taking these tough steps are far greater and almost limitless. This decision cannot be borne by one person alone in Ukraine. Nor should it be. It must be shared?both the risks and the rewards?by all Ukrainians, especially the opposition and business elite. It must also be shared by the EU, the IMF and the United States. All of us in the West should be prepared to help Ukraine, financially and otherwise, to overcome the short-term pain that reforms will require and Russia may inflict. C-SPAN April 20, 1994 Arthur Dunkel, Director General of the UN 26:00:00 Dunkel: If I look back at the last 25 years, what did we have? We had two worlds: The so-called Market Economy world and the centrally planned world; the centrally planned world disappeared. One of the main challenges of the Uruguay round has been to create a world wide system. I think we have to think of that. Secondly, why a world wide system? Because, basically, I consider that if governments cooperate in trade policy field, you reduce the risks of tension ? political tension and even worse than that.? Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
2021-12-20
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CD243: Target Nicaragua

In mid-November, following the re-election of Nicaraguan President Daniel Ortega, Congress passed and President Biden signed the RENACER Act, which escalated an ongoing economic war against President Daniel Ortega. In this episode learn about what the RENACER Act does as we examine the situation in Nicaragua and find out and why Daniel Ortega has a target on his back. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Essential Background Episodes : The World Trade Organization: COOL? : Combating Russia (NDAA 2018) LIVE : National Endowment for Democracy : Combating China Rabbit Hole Episodes : Why Attack Syria? : What Do We Want In Ukraine? : Regime Change (Syria) : Bombing Libya : Sanctions ? Russia, North Korea & Iran : The Illegal Bombing of Syria : Target Venezuela: Regime Change in Progress : A Coup for Capitalism : The ?Democracies? Of Elliott Abrams : The Brink of the Iran War : Social Media Censorship : Targets of the Free Marketeers : Target Belarus U.S.-Nicaragua Relations Maureen Taft-Morales. November 4, 2021. Congressional Research Service. U.S. Department of State, Bureau of Western Hemisphere Affairs. September 14, 2021. William I. Robinson. August 19, 2021. North American Congress on Latin America (NACLA) Clare Ribando Seelke. March 17, 2008. Congressional Research Service. Maureen Taft-Morales. April 19, 2007. Congressional Research Service. IMF Staff. May 16, 2006. The International Monetary Fund. Author?s Name Redacted. May 16, 1997. Congressional Research Service. Edgar Chamorro. January 9, 1986. The New York Times. Fred Hiatt, Joanne Omang, Michael Getler and Don Oberdorfer. April 7, 1984. The Washington Post. Nicaragua Relationships to Russia and China 100% Noticias. September 9, 2021. Havana Times. July 19, 2021. TASS: Russian News Agency. Frida Ghitis. June 8, 2017. ?A Russian Satellite-Tracking Facility in Nicaragua Raises Echoes of the Cold War.? World Politics Review. Cristina Silva. May 22, 2017. Newsweek. Carrie Kahn. November 17, 2016. NPR Morning Edition. John Otis. June 4, 2015. The Wall Street Journal. Matthew Miller. May 4, 2014. Reuters. 2021 Sanctions November 19, 2021. U.S. Department of the Treasury. November 15, 2021. Antony Blinken. November 15, 2021. U.S. Department of State. Ned Price. August 6, 2021. U.S. Department of State. Antony Blinken. July 12, 2021. U.S. Department of State. U.S. Department of the Treasury. June 9, 2021. Minimum-Wage.org 2021 Nicaraguan Elections November 10, 2021. Monique Beals. November 7, 2021. The Hill. Meta (formerly Facebook). November 1, 2021. Meta (formerly Facebook). November 1, 2021. Nahal Toosi. October 26, 2021. Politico. Antony Blinken. October 22, 2021. U.S. Embassy in El Salvador. Carlos Dada. October 6, 2021. El Faro. Kai M. Thaler and Ryan C. Berg. August 24, 2021. The Los Angeles Times. Associated Press. December 11, 2020. The Associated Press. Foreign Agent Law Guy José Bendaña-Guerrero. May 2, 2021. Marca Sur. December 22, 2020. LAND Staff. October 29, 2020. Latin America News Dispatch (LAND). Associated Press. October 15, 2020. ABC News. Oretega?s Arrested Opponents World Economic Forum. Academia.edu The Atlantic Council. Jared Genser, Brian Tronic, Stephanie Herrmann, and Michael Russ. October 28, 2021. Tom Phillips. October 22, 2021. The Guardian. September 6, 2021. Deutsche Welle (DW). Ismael López Ocampo and Mary Beth Sheridan. June 9, 2021. The Washington Post. June 7, 2021. Havana Times. June 5, 2021. Reuters. June 3, 2021. Telesur. The Guardian Staff and agencies in Managua. June 2, 2021. The Guardian. Trump Era - April 2018 Protests Paz Gómez. August 25, 2021. Mary Beth Sheridan. August 4, 2019. The Washington Post. U.S. Department of the Treasury. April 17, 2019. Samantha Sultoon. November 29, 2018. New Atlanticist Blog from the Atlantic Council. November 27, 2018. Federal Register Vol. 83 No. 230. Rocio Cara Labrador. November 26, 2018. Council of Foreign Relations. Rafael Bernal. November 01, 2018. The Hill. Mabel Calero. July 26, 2018. Max Blumenthal. June 19, 2018. Foreign ?Assistance? to Nicaragua Associated Press. August 26, 2021. U.S. News and World Report. William I. Robinson. August 20, 2021. North American Congress on Latin America (NACLA) Elliott Abrams. June 9, 2021. Council on Foreign Relations. Ben Norton. June 1, 2021. John Perry. August 4, 2020. Council on Hemispheric Affairs. Responsive Assistance in Nicaragua [RFTOP No: 72052420R00004] March-April 2020. USAID OIG Latin America and Caribbean Regional Office. October 24, 2019. USAID. IMF Western Hemisphere Department Staff. June 27, 2017. The International Monetary Fund. Richard Falk. February 21, 2012. Al Jazeera. Laws Sponsor: Senator Bob Menendez (D-NJ) Passed by Voice Vote in the Senate Law Outline "Congress unequivocally condemns the politically motivated and unlawful detention of presidential candidates Cristiana Chamorro, Arturo Cruz, Felix Maradiaga, and Juan Sebastian Chamorro." "Congress unequivocally condemns the passage of the Foreign Agents Regulation Law, the Special Cybercrimes Law, the Self Determination Law, and the Consumer Protection Law by the National Assembly of Nicaragua..." "The President should review" the continued participation of Nicaragua in the agreement. The authority listed is Article 21.2 of the agreement that says, "Nothing in this agreement shall be construed... to preclude a Party from applying measures that it considers necessary for the fulfillment of its obligations with respect to the maintenance or restoration of international peace or security, or the protection of its own essential security interests." President Trump issued an Executive Order on November 27, 2018 that said that the response to the protests that began on April 18, 2018 "and the Ortega regime's systematic dismantling and undermining of democratic institutions and the rule of law, its use of indiscriminate violence and repressive tactics against civilians, as well as its corruption leading to the destabilization of Nicaragua's economy constitutes an unusual and extraordinary threat to the national security and foreign policy of the United States." Directs the United States Executive Director at the World Bank, Inter-American Development Bank, and the International Monetary Fund to "increase scrutiny of any loan or financial or technical assistance provided for a project in Nicaragua" and "to ensure" that the loan or assistance is administered through an entity with full independence from the Government of Nicaragua. The Secretary of State and Secretary of Treasury, "in consultation" with the intelligence community, "shall develop and implement a coordinated strategy" for implementing targeted sanctions in order to "facilitate the necessary conditions for free, fair, and transparent elections in Nicaragua." Targets sanctions specifically at... Officials in the government of President Daniel Ortega Family members of Daniel Ortega High ranking members of the National Nicaraguan Police Members of the Supreme Electoral Council of Nicaragua Officials of the Central Bank of Nicaragua Party members and elected officials from the Sandinista National Liberation Front and their family members Businesses that conduct "corrupt" financial transactions with officials in the government of President Daniel Ortega, his party, or his family. The sanctions are authorized by the 2018 law (outlined below) against "any foreign person" who, on or after April 18, 2018... Used violence "or conduct" that "constitutes a serious abuse" against protestors Taken "actions or policies" that undermine "democratic processes or institutions" Any current or former government official that used "private or public assets for personal gain or political purposes" Any current or former government official involved in corruption related to government contracts Any current or former government official involved in bribery Any current or former government official that transferred the proceeds of corruption Arrested or prosecuted a person disseminating information to the public The sanctions include... Asset blocking of "all property and interests in property" if they are in the United States, come within the United States, or come within the possession or control of a "United States person." Exclusion from the United States and revocation of visas and other documents. Anyone who "violates, attempts to violate, conspires to violate, or causes a violation" of sanctions can be hit with a civil penalty of a $250,000 maximum fine or up to twice the amount of sanctions violating transaction and/or a criminal penalty of up to $1 million or up to 20 years in prison. Requires the Secretary of State to coordinate with other countries - specifically Canada, members of the European Union, and governments in Latin America and the Caribbean - to impose the sanctions together "in order to advance democratic elections in Nicaragua." Adds Nicaragua to an annual report that gets submitted to Congress. The people identified in the report who are accused of corruption in regards to government contracts, bribery, extortion, money laundering, or "violence, harassment, or intimidation directed at governmental or non governmental corruption investigators" will have their visas revoked and be prohibited from entering the United States. The Department of State - working with intelligence officials - will submit a classified report to Congress within 90 days about... Cooperation between the Nicaraguan military and Russian military, intelligence, security forces, law enforcement, and Russian security contractors. Cooperation between Russia and Nicaragua in telecommunications and satellites Economic cooperation, specifically in banking Threats that cooperation between Russia and Nicaragua pose to "United States national interests and national security." The Secretary of State, Administrator of USAID and the CEO of the United States Agency for Global Media will submit a report to Congress listing all media "directly or indirectly owned or controlled by President Daniel Ortega, members of the Ortega family, or known allies of the Ortega government" and it will access the extent to which Voice of America is reaching the Nicaraguan people. Renames the "Nicaraguan Human Rights and Anticorruption Act of 2018" the "Nicaragua Investment and Conditionality Act of 2018" or "NICA Act" Signed into law on December 20, 2018 Sponsor: Representative Ileana Ros-Lehtinen (R-FL) Law Outline Congress wanted the Catholic Church of Nicaragua to negotiate for early elections on behalf of "civil society", the student movement, private sector, and the "political opposition" Congress did like that the Government of Nicaragua was refusing to negotiate Forces the Treasury Secretary to instruct our representatives at the World Bank Group and Inter-American Development Bank to oppose "any loan or financial or technical assistance to the Government of Nicaragua for a project in Nicaragua." We can support loans "to address basic human needs" or "promote democracy in Nicaragua" Authorizes sanctions against "any foreign person" who, on or after April 18, 2018... Used violence "or conduct" that "constitutes a serious abuse" against protestors Taken "actions or policies" that undermine "democratic processes or institutions" Any current or former government official that used "private or public assets for personal gain or political purposes" Any current or former government official involved in corruption related to government contracts Any current or former government official involved in bribery Any current or former government official that transferred the proceeds of corruption Arrested or prosecuted a person disseminating information to the public The sanctions include... Asset blocking of "all property and interests in property" if they are in the United States, come within the United States, or come within the possession or control of a "United States person." Exclusion from the United States and revocation of visas and other documents. Punishes anyone who "violates, attempts to violate, conspires to violate, or causes a violation" of sanctions with a civil penalty up to a $250,000 fine or up to twice the amount of sanctions violating transaction and/or a criminal penalty of up to $1 million or up to 20 years in prison. The asset blocking sanctions do not authorize the blocking of goods imports. Allows the President to waive the travel restrictions and sanctions. The sanctions authorized by this law expire on December 31, 2023. Audio Sources November 10, 2021 Moderator: I present Paul Pumphrey from Friends of the Congo. Paul Pumphrey: Here in Nicaragua, I saw a free and fair election. I talked to many people who were not a part of the Sandinistas party. And yet they themselves said they were willing to accept whatever result happened in the election. Moderator: Next we have Craig Pasta Jardula who is a journalist based in the United States. Craig Pasta Jardula: Mainly, I want to talk about the process, meaning the chain of custody, because that's something that we really saw that was great here in Nicaragua, it made this election a home run. The chain of custody is very strong here, including the fact that in Nicaragua, we have something that is awesome that a lot of countries need to adopt, which is where the vote is cast, it is counted, that ensures a strong chain of custody. Moderator: Next is Rick Cohn from Friends of Latin America. Rick Cohn: I want to speak just a little bit though a group of 11 of us went to Bilwi on the Caribbean coast. And in the United States, one of the things they'll use to say this election is fake, is that a high percentage of people voted, and a high percentage of people voted for the FSLN. And that can't happen, because American politicians that would never happen. Well, so I want to say something about why the voters told us they were voting. They told us that basically, they had two Category Four and Category Five hurricanes last year, and the government came and saved their lives, saved many, many lives. And, you know, people have trust in that government. And then the government came in and made sure the electric was up. In Puerto Rico from a year earlier, electric still isn't isn't working, because they, you know, are making money selling electric, but it still doesn't work. They told us they had new roofs put on almost immediately they were delivered. They told us that the schools were rebuilt. All of the schools were in good condition. Oh, the schools and some of them have new buildings. So we had a situation where they were very happy with the performance of the government. And that is why -- oh, they also told us they had one kilometer of road before the FSLN came into power from the neoliberal period, now they have 500 kilometers. And with 70 more kilometers, they'll be able to drive from all the way to Managua, which they've never been able to do in history. So they told us these things. And the FSLN party received the highest percentage of votes, but that's not strange, because they really support the government. They received 86.7% of the vote. You know, there's no way that's made up - it's not fake. It's where they're at. It is certainly the biggest deficiency in democracy in Nicaragua is the interference that there is so much interference from the US government and the media, and the censorship and the lies that they tell. That's the interference that's occurring in this election. Rick Cohn: Corporate media like Facebook, well, all of the corporate media including Facebook and Twitter, but social media, are actually just part of the US system and they're contracted to provide information back and forth, they're actually an aspect of the government and they close 1000s of people's accounts, who are people, and I met some of them, they're actual people, and they close their accounts. And they weren't, you know, anyone who was saying anything other than the fact that they may have been supporting the Nicaraguan people or opposed to the the sanctions on Nicaragua. September 21, 2021 , *Hearing not on C-SPAN Witnesses: Emily Mendrala Deputy Assistant Secretary of State at the Bureau of Western Hemisphere Affairs Laure Chinchilla Former President of Costa Rica Co-Chair at The Inter-American Dialogue Ryan Berg, PhD Senior Fellow in the Americas Program at the Center for Strategic and International Studies (CSIS) Oct. 2018 - Apr. 2021: Research Fellow at the American Enterprise Institute Apr. 2018 - Oct. 2018: Research Consultant at The World Bank July 2014 - Oct 2014: US State Department negotiator at the Organization of American States (OAS) 2009: Intern for Paul Ryan Berta Valle Wife of Felix Maradiaga Rep. Albio Sires (D-NJ): The regime has rounded up nearly every potential challenger to Ortega and has not even tried to hide these arrests and forced disappearances under the veneer of legality. 05:42 Rep. Albio Sires (D-NJ): Having written the NICA Act with Congresswoman Ileana Ros-Lehtinen (R-FL), I am frustrated that the International Monetary Fund recently provided $350 million to the regime. The IMF should not take Ortega's us word for it that these funds will be used to address the COVID pandemic. 06:53 Rep. Albio Sires (D-NJ): We should also begin preparing a number of severe diplomatic consequences, assuming Nicaragua's election in November becomes a coronation for Ortega. Nicaragua should be suspended under the International Democratic Charter on November 8, and its participation under the Central America Free Trade Agreement should be reconsidered. 10:39 Rep. Mark Green (R-TN): On November 7 a political farce will be held, claiming to resemble elections. No one should be fooled about the outcome -- any hope of unseating the socialist dictatorship is sitting inside of Ortega's prisons. 13:56 *Emily Mendrala: As you are well aware, the Ortega-Murillo government has carried out a ruthless crackdown over the past several months, canceling the registration of opposition parties, incarcerating journalists, opposition leaders, potential presidential candidates, students, private sector leaders and others who defend free and fair elections, attacking the free press, closing long standing NGOs that provide humanitarian and medical assistance to Nicaraguans in need. 15:06 Emily Mendrala: In the face of sham elections in Nicaragua, we and our international partners must continue to denounce and push back against the Ortega-Murillo government's anti-democratic rule as well as its use of Russian-inspired laws to carry out repression. 17:56 Emily Mendrala: Through USAID we continue to support Nicaraguan civil society, independent media and human rights defenders. Our continued support assures Nicaraguans that the outside world has not forgotten them. 19:06 Rep. Albio Sires (D-NJ): Are we using our voice? Is the administration using its voice and vote with international financial institution to oppose loans and other financial assistance to Ortega? Because I have to tell you, it's very upsetting to me that we do all this work here. We asked the administration to put sanctions on different people. And yet the IMF, which we probably contribute the largest amount of money, or if not, one of the largest amounts of money, they seem to just ignore what's going on in Nicaragua. And it has to -- I intend to write a letter to the IMF. And hopefully we'll have them before this committee, because this is not acceptable. 20:22 Emily Mendrala: We are using our voice and our vote and every opportunity in front of multilateral institutions to oppose lending to the Ortega-Murillo government. We will continue to use our voice, vote and influence to advocate against lending from international financial institutions to the Ortega-Murillo government and we will also continue to collaborate with international partners where appropriate: EU, Canada and others to do the same. 30:43 Rep. Joaquin Castro (D-TX): The upcoming November 7 elections will be neither free nor fair 1:04:30 Berta Valle: Even though Félix [Maradiaga] has dedicated his life to serving our country, the regime has charged him and others with a conspiracy to undermine national integrity. The government is alleging that Félix and others were part of a global conspiracy to use foreign resources, including from the US Agency for International Development, the International Republican Institute and the National Endowment for Democracy to harm the interests of the nation. 1:16:33 Ryan Berg: As well as November 7, I think we need to declare Nicaragua's elections illegitimate under current conditions. 1:27:16 Ryan Berg: Thank you, Congressman Green, for the question. Yes, the two countries that I would point out as extra-hemispheric actors who have have come into the hemisphere to shore up the Ortega regime are Russia and Iran. Russia, we've seen with a significant presence in Nicaragua for a while. Its increased its presence in past years, to an extent that I think should be very alarming for the US government. Not only does it have a number of port agreements with Nicaragua, and access to the Caribbean, where it can engage in anti access and area denial capabilities, potentially. But also in cyberspace. We saw recently the Russians and Nicaraguans sign a major agreement in the cyberspace, particularly to help the regime not only increase its domestic security apparatus, but to spy potentially on the opposition on our own citizens, and indeed, potentially on on other governments in Central America, depending upon the strength of the equipment transfers that we'll see in future. So they have a whole number or whole range of capabilities that they are developing within Nicaragua, that there are signals intelligence stations that are actually quite close to the US Embassy in Managua. And so that's that's Russia, Russia has an interest in shoring up this regime on the cheap. And I think Iran has approached the regime in a number of ways, most specifically, in offering partnerships to circumvent US sanctions architecture, in which it excels, because of the sanctions architecture that it has been under for so long. And we haven't seen as deep I would say, as a presence of the Iranians in Nicaragua, but it's it's there and it's also concerning. I think, in general, Congressman, part of the Ortega regime's plan for survival is to sort of recreate a situation of rivalry and enmity in Central America again, and lend a platform for major geopolitical competitors to the United States to increase their capabilities on the US doorstep and I think that's a significant aspect of this political, economic and social crisis here. 1:35:50 Rep. Albio Sires (D-NJ): If the Ortega regime moves ahead was stealing this November's elections the international community must come together to impose a very steep price. November 1, 2018 John Bolton: The "Troika of Tyranny" in this hemisphere -- Cuba, Venezuela and Nicaragua -- has finally met its match. John Bolton: Today in this hemisphere we are also confronted once again, with the destructive forces of oppression, socialism and totalitarianism. In Cuba, Venezuela and Nicaragua, we see the perils of poisonous ideologies left unchecked. September 25, 2007 16:50 President Daniel Ortega: The General Assembly is simply a reflection of this world where a capitalist and imperialist minority is imposing global capitalism to impoverish the world continue to enslave us all and promote apartheid against Latin American immigrants and against African immigrants in Europe. This global capitalism is one beast and it has tentacles everywhere. 25:30 President Daniel Ortega: They have to understand once and for all, that just as they have managed to profit from privatizations that have given rise to these huge multi-nationals that then set up in developing countries, they say that they are helping us. No business person provides assistance, they simply go to earn as much money as they can, they don't go to invest. Developing countries are considered to be insecure countries, and we are simply being ransacked. If we compare the volume of riches that they're extracting from our countries -- the capitalists in developed countries I'm talking about -- through their major companies, the globalized multinationals. If we can compare that wealth with what the Latin American immigrants send back to their families from the U.S. or the Asian and African families in Europe send back to their families, it is a miserable amount compared to the volume of wealth that is extracted on a daily basis by these forms of institutionalized oppression. 28:30 President Daniel Ortega: These companies are simply using cheap labor. They are benefiting from clauses in free trade agreements. I've got us free trade, why not? Free trade for societies and nations. But clearly in that system, it's the law of the jungle the strongest will impose themselves on the rest. What well the world needs is fair trade. What the world demands is really a genuine change in the capitalist, globalized, imperialist economies, that is where we need to have a change. They have to change this concept that they have of a free market. They have to change the slant of these free trade agreements. April 16, 1991 20:00 President Violetta Chamorro: My government is committed to radically reducing government intervention in the economy and the enormous bureaucratic apparatus that we have inherited. Our Congress approved a law that authorizes private banks to operate and encourages foreign investments and is studying the privatization law in order to convert government to businesses. We are rapidly advancing towards the establishment of a social market economy. Restrictions on prices and salaries must be lifted. Likewise, we have initiated a serious economic stabilization program accompanied by the corresponding tax reforms in order to discipline and improve and decrease public spending to encourage domestic production and to stimulate private domestic and foreign investment. Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
2021-12-06
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Goodbye Thank You Episodes

This show wouldn't exist without its producers who have paid for Congressional Dish to keep it going and growing for 9 years and counting. In this last public bonus Thank You episode, hear about the changes coming to your podcast as it enters its 10th year. It's time to refocus and give you more of what you're paying for: Deep dives into what Congress is doing with your money and in your name. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Producer-recommended Sources Kevin Carney. October 26, 2021. An Interesting Blog. Andi Davis. October 22, 2021. Super Talk: Mississippi Media. Business Wire. October 19, 2021. Zoe Schiffer. October 18, 2021. The Verge. Cristan Williams. The Trans Advocate. The Energy Gang. October 14, 2021. Wood Mackenzie. J.K. Rowling. June 10, 2020. jkrowling.com Patrick Bedard. October 1, 2005. Car and Driver. BMW Group. November 5, 2000. Music Presented in This Episode Intro & Exit: by (found on by mevio)
2021-11-22
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CD242: The Offshore Drilling Police

On October 1, 2021 an oil pipeline that was likely struck by a cargo ship's anchor leaked tens of thousands of gallons of oil into the ocean and onto the beaches of Orange County, CA. In this episode, examine how the oil spill happened by listening to testimony provided to both the U.S. Congress and the California State Senate, and learn about the disturbing lack of policing that is taking place under the sea. Please Support Congressional Dish ? Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: [email protected] Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or [email protected] Use your bank?s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Articles and Documents Nicole Charky. April 7, 2021. Patch. Nicole Charky. March 23, 2021. Patch. U.S. Government Accountability Office. GAO-21-293. Heal the Bay. June 24, 2015 . planetexperts.com Heal the Bay. August 20, 2012. Sarah S. Elkind. June 1, 2012. The Journal of American History, Volume 99, Issue 1. Tom Fowler. February 21, 2012. The Wall Street Journal. APPEL News Staff. May 10, 2011. APPEL News, Volume 4, Issue 1. Offshore Technology. Bureau of Ocean Energy Management. November 23, 1970. Open Secrets Profiles Images CA State Senate: Natural Resources and Water Committee Informational Hearing Southern California Oil Spill: Preparation response, ongoing risks, and potential solutions. CA State Senate: Natural Resources and Water Committee Informational Hearing Southern California Oil Spill: Preparation response, ongoing risks, and potential solutions. GAO Analysis of Bureau of Safety and Environmental Enforcement Data, GAO-21-293. GAO-21-293. Hearings Thursday, October 28, 2021 Witnesses: Chuck Bonham Head of California Department of Fishing and Wildlife Tom Cullen Administrator of OSPR (Offshore Spill Prevention and Response) Kim Carr Mayor Pro Tem, City of Huntington Beach Brian Nowicki California Climate Policy Director at the Center for Biological Diversity Pete Stauffer Environmental Director for the Surfrider Foundation Jennifer Lucchesi State Lands Commission Clips 3:44 Senator Henry Stern: But the pipeline that runs to Amplify and Beta Offshore?s platform is the source of the oil production that runs through the pipeline in question. That pipeline is in federal jurisdiction but it brings that produced oil onshore into the state waters and eventually on state lands. 21:05 Chuck Bonham: What we now know is about four and a half miles offshore, so in federal waters, there's a pipeline that runs from one platform, which is a collection of three platforms operated by a company called Beta Offshore, owned by a company called Amplify Energy. That last platform, Ellie, has a pipeline which delivers the product 17.7 miles inland, where the pipe comes on shore just below the Queen Mary more or less, to land based infrastructure. That pipe had a rupture in it. And we now know based on visual and diver and other evidentiary efforts, that about 4000 feet of that pipeline was moved about 105 feet off of center. And in that stretch is about a 13 inch horizontal, almost like a hairline fracture. If you could imagine a bone break in a pipe, which is, I think, about 13 inches in diameter, concrete on the outside and metal on the inside. That's the likely source of the leak. 22:25 Chuck Bonham: From the very beginning moments, all of us involved assumed a worse case. At that moment in time we had a planning number of a spill of about 3,134 Barrels which is 131,000 gallons rounding as a maximum worst case. 30:59 Chuck Bonham: A month later we now think the likely spill number is 24,696 gallons 41:13 Chuck Bonham: Fortunately given the size of the spill, there were not as many wildlife casualties as could have occurred during a higher migration cycle. 1:25:47 Mayor Kim Carr: So starting off on Saturday, October 2, it's been brought up that yes, we did have a very large air show happening that day. About 1.5 million people were on the beach that day to see the Pacific Air Show. And around nine o'clock that morning, there were city personnel that heard an announcement on VHF channel 16 by the Coast Guard of a possible oil spill in the area, but nothing very specific. At that time, no major details, it wasn't anything to really worry about. By 10:30 in the morning, the Coast Guard had advised us that the spill was larger than originally thought. However, we didn't have a whole lot of information as to where the location of the spill was nor of the scope of the situation. By 11 o'clock that same day, the Coast Guard had announced that it was now going to be a major spill, and that the incident management team was being activated. 1:28:00 Mayor Kim Carr: At two o'clock, the Coast Guard had advised us that the oil spill would not be reaching the shores of Huntington Beach until Monday, October 4. And again, we didn't have a whole lot of information as to where the spill was. We knew it was off our coast, but we didn't know exactly where or exactly how large the spill was. But then interestingly enough, just a half hour later, we started to receive messages that there were boats that were experiencing oil damage just outside of the air show flight box. And so that became a concern for our city. So then we activated our fire crews, our hazmat team, or the oil spill response trailer and started to do the mitigation efforts. Then this is where it gets to be very, very interesting. At 2:45 the city was notified by the Newport Beach rescue vessel that there were private contractors conducting oil spill cleanups outside of the air show flight box. 1:32:42 Mayor Kim Carr: What we could have done better, what would have been an opportunity was perhaps if the Coast Guard had some sort of awareness, the night before or when that nine o'clock notification came through, we could have been even more proactive because as I said before, every hour during these crises matters. 1:34:00 Mayor Kim Carr: The Bolsa Chica Ecological Reserve was spared. The Talbert Marsh does have oil damage and again looking back, if we could have had maybe a few more hours notice, we probably could have mitigated that damage even more than what we did. 1:43:17 Brian Nowicki: Like all of you, we at the Center for Biological Diversity are heartbroken by every oil and seabird and are alarmed at the miles of marshes and coastline that will be poisoned for years by this bill. We're angry that yet again, the oil industry has proven its inability to contain its toxic pollution. The structure of pipeline funding to beach proves yet again, that every piece of fossil fuel infrastructure is yet another disaster waiting to happen. And there is a lot of that infrastructure in California. It's increasingly old, outdated in disrepair and poorly located, like the 40 year old pipeline that gave us this most recent spill, all of which makes it increasingly dangerous. Looking beyond the nine oil platforms and islands in state water, there are 23 platforms in federal waters off California. But the fact that those 23 platforms are a little farther from shore should not give us much comfort. First, because oil spills from those operations still end up in our water, our beaches and our wildlife. But also as we've heard today, further from shore also means longer stretches of aging and dangerously vulnerable infrastructure, like the 17 mile long pipeline we're discussing today are clean, reliable federal regulations to protect us from oil spills in federal waters. Federal regulators continue to prove that they are perfectly willing to allow those platforms to continue operating to the last drop of oil despite the mounting dangers of decaying infrastructure well beyond its intended lifespan, outdated drilling plans, numerous violations and insufficient bonds to pay for decommissioning. 1:45:15 Brian Nowicki: But I want to be clear that this is not a problem unique to offshore platforms. At the exact same time that 10s of thousands of gallons of oil were rolling up onto beaches and marshes in Orange County, there was an oil spill in Kern County that is now approaching 5 million gallons of fluid, a mixture of crude oil, toxic wastewater, that includes 600,000 gallons of crude. In fact, in just the last few years, there have been many oil spills in California greater than the spill off Huntington Beach. In the Cymric field alone there were three huge spills in 2019 at 550,000 gallons, 836,000 and 1.2 million gallons respectively. 159,000 in Midway in 2019, 250,000 at McKittrick in 2020. There is another ongoing spill at a separator plant in Cymric that has been leaking since 2003 and has reportedly released as much as 84 million gallons of fluid to date. Now these numbers reflect total combined volumes of crude and produced water and mud, which constitute a toxic mix. As state agencies have testified before this legislature in the past, these dangerous onshore oil operations have contaminated groundwater, land, and wildlife. 1:46:32 Brian Nowicki: After more than 150 years of the oil industry drilling at will in California, the oil is gone and the bottom of the barrel that's left is harder and more dangerous to extract. There's also some of the most carbon polluting crude in the world. With the easy stuff taken, the oil industry is in decline in California, with production down 68% since 1985. The only question is how much more damage will this dying industry do on its way out? 1:49:10 Pete Stauffer: Now with the oil deposit seen as far south as the Mexico border, there are concerns that San Diego wetlands are also being impacted. Moreover, while birds, fish and marine mammals have been the most visibly impacted, the full scale of the ecological damage will take some time to become clear. In the week since the spill event, the oil slick has transformed into an incalculable number of tar balls in the ocean, while tar balls typically float, they can also find their way into underwater sediment or near shore habitats where their impacts on ecological health and wildlife may persist for years or even decades. 1:52:51 Pete Stauffer: According to the federal government there have been at least 44 oil spills since 1969 that have each released more than 10,000 barrels of oil into US waters 2:02:36 Mayor Kim Carr: Just to give you an idea of how much TOT we do receive in Huntington Beach, we receive about $16 million a year. We don't receive anything from those offshore platforms, nothing. And as far as the drilling that we currently have here in Huntington Beach, it's less than $700,000 a year. 2:05:54 Brian Nowicki: What I can't say though, for sure is that it's going to take longer than one season to see what the full impacts are to the local wildlife. And of course, it is wetlands and marshes that often are the most difficult and take the longest to recover from the sorts of impacts. 2:21:11 Jennifer Lucchesi: In 1921, the legislature created the first tidelands oil and gas leasing program. The existing offshore leases the commission is responsible for managing today were issued over a 30 year period between 1938 and 1968. Importantly, I want to highlight a specific act in 1995. The Cunningham shell Act, which serves as a foundational law for the existing legacy oil and gas leases the commission currently manages. Importantly, this Act required the commission to issue oil and gas leases for term not based on years, but for so long as oil and gas is produced in paying quantities. Essentially, this means that Alessi can produce oil and gas pursuant to their state lease indefinitely as long as it is economic for them to do so. 2:58:13 Jennifer Lucchesi: For pipelines that are solely within state waters and under lease with the State Lands Commission, we require the pipelines to be externally and internally inspected annually. And we have engineers on staff that review those inspections and consult with the fire marshal as well with our federal partners on any type of remedial action that needs to happen based on the results of those inspections. For those pipelines that cross both federal and state waters our authority is more limited because the federal government's regulatory authority takes precedence. And PHMSA (Pipeline and Hazardous Materials Safety Administration) is the primary federal agency that regulates those interstate pipelines. They require inspections externally and internally every two years. And that's what this pipeline at issue was subjected to, the platform Elly pipeline. 03:01:20 Senator Dave Min: Let's say you have a pipe and the lease term ends. What powers do you have? What are the considerations you have to follow either statutory or contractually to renew those permits, issue a new permit? Or alternatively, do you have any leeway contractually, statutorily to end those permits prematurely and say, you know, we don't think that, you know, the upkeep is appropriate, you're violating certain provisions, we're just gonna take away your permit prematurely. Do you have any leeway like that? So I'm just trying to get a sense of your flexibility, both in issuing new right of way permits, but also yanking away existing permits. Jennifer Lucchesi: Certainly. So I can give an example of our lease compliance and enforcement actions most recently, with a pipeline that served platforms Hogan and Houchin in the Santa Barbara Channel. Those are two federal platforms in federal waters, that pipeline that served those platforms did cross into state waters and connected on shore. That pipeline lessee of ours was not compliant with our lease terms and the commission took action to terminate those leases based on non compliance and default in breach of the lease terms. And essentially, that did terminate production on those two federal platforms. And they are part of the eight federal platforms that BOEM just announced they were going to be looking at as part of a programmatic EIS for decommissioning. The Commission does not have the authority to unilaterally terminate an existing valid lease absent any evidence of a breach or non compliance Subcommittee on Oversight and Investigations and the Subcommittee October 18, 2021 Witnesses: Dr. Michael H. Ziccardi Director, Oiled Wildlife Care Network Executive Director, One Health Institute, School of Veterinary Medicine, UC Davis Scott Breneman Commercial Fishing, Retail Market, and Restaurant Owner Newport Beach, CA Vipe Desai Founding Member, Business Alliance for Protecting the Pacific Coast Dr. David L. Valentine Norris Presidential Chair, Earth Science Professor of Marine Science, UC Santa Barbara Clips Rep. Katie Porter: As of October 10, workers had recovered 250,000 pounds of oily debris and 14 barrels full of tar balls from the Orange County shorelines. That is a small fraction, though, of the oil that was released, most of which is being distributed in the ocean, making its way into the food chain or falling to the ocean floor. Some of that oil is now heading south. And we will not learn the long term consequences on the environment for many years to come. Rep. Katie Porter: The witnesses here with us today will reveal a different kind of subsidy for oil and gas companies, an involuntary subsidy that occurs when the community bears the costs of oil drilling?s pollution. When a locally owned business like Mr Brennaman that has been in the family for four generations loses tens of thousands of dollars because of the leak. That's his subsidies to oil and gas. When a hotel loses its bookings overnight. That's its subsidy for oil and gas. When the fragile decades-long effort to recover a species under the Endangered Species Act is finally showing progress, but an oil spill puts it all at risk. That's a cost of oil and gas to these subsidies and so many others are the reasons that oil wells like the ones behind this leak are still active. Getting rid of the subsidies is the first step to get rid of the problem. Rep. Mike Levin (D-CA): We know that the spill was not reported by the responsible oil company until the next day, despite the company's knowledge. We also know that Orange County residents recognize that there was a problem in part due to the smell caused by this bill and actually reported it before the oil company did so, clearly something wrong with that. Rep. Mike Levin (D-CA): In my congressional district, which is just the south of here, the spill shutdown businesses and beaches in Dana Point in San Clemente. Tarballs that are likely caused by the spill have also been found as far south in my district as Oceanside, Carlsbad, Encinitas and Del Mar in San Diego County. Rep. Mike Levin (D-CA): It'll come as no surprise that more than $2 billion in wages and $4 billion in gross domestic product are generated by Orange County's ocean and marine economy, including tourism. So we have a lot to lose every time there's a spill, not just to our beaches but to our economy. Dr. Michael H. Ziccardi: In Birds, the primary issue we are concerned mostly about are the acute effects due to hypothermia. If you think of feathers almost as a dry suit in animals, if oil gets on that dry suit, it creates a hole that allows cold water to seep next to the skin. Birds can get very cold in the environment and start to waste away, they have to come ashore to stay warm, but they can no longer eat. So these birds actually can waste away in a matter of days unless proactive capture occurs. There can also be chronic effects in animals as well due to printing of oil off of the feathers or ingestion in their food items. Those chronic effects can include, in essence, effects on every organ system in an animal's body from reproductive effects liver, kidney, respiratory tracts, depending on the dose and the exposure and the toxin itself. Scott Breneman: We were fishing on Friday, October 1, and we were coming in the harbor and I detected a distinct odor of oil and it was about midnight we're heading in. Kind of search around the boat. I thought maybe it was a spill on the boat or a hose broke. I went in the engine room, searched all the hatches where I keep all my extra fluids and everything, didn't find anything. Come the next day the press released that there was an actual oil spill, and my fish sales and my fish market, once that was released, they dropped drastically down, 90% this past few weeks since it was released. I've seen the same effect -- my family's been fishing for four generations and in the 90s my dad went through the oil spill that was off Seal Beach, in our fish market, the same exact response from the public scared, worried the products contaminated. A huge ripple effect all the way up to the wholesalers I deal with outside of Orange County there. They had concerns from their customers, their restaurants. And to rebuild that business when it happened in the 90s, I watched my dad struggle for months to get back to back to where it was and it's...I?m seeing the same exact thing happen here. A couple of days after the oil spill they had closed Newport Harbor. And so my boat was actually trapped inside of the harbor so I wasn't even able to go service my accounts. And it's just been, to tell you the truth, a very difficult couple of weeks and I'm not sure how long this is going to last. I'm not sure how the public's going to respond to it long term if there's still going to have some fear that the fish is contaminated. Vipe Desai: In fact between 2007 and 2018 there were over 7000 oil spills in federal waters, an average of about two every day. Vipe Desai: The first impact came from the much anticipated Pacific Air Show. As oil began to wash ashore, beaches were deemed unsafe for activity. On Saturday October 2nd, 1.5 million visitors saw the show from Huntington Beach, but the show's triumphant conclusion on Sunday was cancelled with little fanfare. Cancellations hit hotels and resorts almost immediately and their surrounding retail and restaurants suffered. Wing Lam, co-founder of Wahoo?s Fish tacos, informed me that the Saturday before the oil spill felt like a busy summer day. But the following day, once word got out about the spill, it was a ghost town. In addition, as the spill moved south, their locations in Laguna Beach and San Clemente started to feel the impacts. Bobby Abdel, owner of Jack's Surfboards, had a similarly bleak weekend. He told me that once the oil spill was announced customer traffic plummeted. Their stores are facing a stockpile of unsold inventory from the US Open of Surfing and the Pacific Air Show. All nine of Jack's Surfboards locations were impacted in some form or another because of the spill. Later in the week, I received a call from a colleague, Wendy Marshall, a full time hard working mother of two who shared with me that her upcoming Airbnb reservations, a form of income to help her offset college tuition costs for her children, had mostly been cancelled. From Dana Point though dolphin and whale capital of the world and the first whale Heritage Site in the Americas. Giselle Anderson from local business Captain Dave's Dolphin and Whale Watching Safari shared losses from trips and bookings into November could be down as much as 74% because of the oil spill. Dr. David L. Valentine: I want to invoke my privilege as a university professor to start with a little bit of a history lesson. Many people think that the largest spill in US history occurred in the Gulf of Mexico in 2010. This is not correct. The largest spill in US history occurred in California. It was not the October 2021 spill that we're here to talk about today. Nor was it the 2015 refugio beach pipeline rupture on the gaviota coast. It was not the 2007 Cosco, Busan spill and San Francisco Bay. And it was not the 1997 platform Irene pipeline rupture of Annenberg Air Force Base. It was not the 1990 American traders spill off the coast of Huntington Beach. It was not the 1969 platform, an oil spill off of Santa Barbara, the one that helped spawn the environmental movement. Nor was it the sinking of the SS Montebello, an oil freighter that was hit by a Japanese torpedo off the coast of Cambria and World War Two. It was called the Lakeview Gusher. It occurred in Kern County, and it's estimated to have released around 380 million gallons of oil over an 18 month period starting in 1910. And I tell you this bit of California history because it punctuates five important points. First, oil production carries inherent risk. Second, California has suffered more than its fair share of spills. Third, the size of a spill is only one factor in determining its impact. Fourth, responsiveness and context matter. And fifth, every spill is different and that includes the impacts. Dr. David L. Valentine: For the current spill, I have honed in on three key modes of exposure that concern me most: floating oil slicks that can impact organisms living at or near the sea surface, coastline areas such as wetlands where oil can accumulate and persist, and the sea floor, where oil can easily hide from view but may still pose longer term risks. Among these three, the fate of impacts of submerged oil is especially relevant to California, is the least well understood, and requires additional research effort. Rep. Katie Porter (D-CA): So recently I asked the Department of Interior about the specific kinds of subsidies that Beta Operating received. Beta is a subsidiary of Amplify Energy, and that's the company that owns the platforms and the pipelines that leaked off our coast. It turns out that they got nearly $20 million from the federal government, specifically because the oil wells are at the end of their lives and are not producing much oil, which makes them less profitable. So taxpayers are being asked to pay to encourage oil production in the Pacific Ocean by giving oil companies millions of dollars to do it. Rep. Katie Porter (D-CA): Beta operating is in line to get another $11 million to drill for new wells off the coast because that $11 million is needed, in their words, ?to make production economic.? So taxpayers are being asked to pay Beta to drill new wells. That means wells that would otherwise not be drilled without our taxpayer subsidy. Dr. Michael H. Ziccardi: What we have found, during and after the Deepwater Horizon oil spill, is that dolphins can be significantly impacted by oil, primarily through inhalation of the fumes at the surface and ingestion of the oil substances themselves. What we found is that it affects their immune system, it affects their reproductive tract, and it affects their gastrointestinal tract, so very significant changes. And that's information that is just now starting to come out in the publications from the Deepwater Horizon incident. Vipe Desai: Had this oil spill moved north, it would have impacted two of the busiest ports in the nation, which account for billions of dollars of goods flowing in and out of both ports of LA and Long Beach. And that would have had an even larger impact to other communities across the US. Rep. Mike Levin (D-CA): The annual oil production off the coast of California is about 1/3 of what our nation produces in a single day. So it really is a drop in the bucket when you consider the overwhelming potential for economic damage for environmental damage, the risks simply aren't worth it. Vipe Desai: California's ocean economy generates $54.3 billion in revenue and supports 654,000 jobs. Dr. David L. Valentine: In Orange County, the areas that I would look at most closely as being especially vulnerable on the environmental side would be the wetland environments. Places like Talbert Marsh where oil can surge in with the tide. And it can get trapped in those environments and it can get stuck and it won't come back out when the tide recedes. Those are especially vulnerable because they're these rich, diverse ecosystems. They provide a whole host of different services, whether it's flyways, or fisheries, or in keeping the nutrient levels moderated in coastal waters. And that oil can stick there and it can have a long term impact. And furthermore, cleanup in those cases can be very difficult because getting into a marsh and trying to clean it up manually can cause as much damage as oil can cause. Dr. David L. Valentine: And then the other environment that I worry a lot about is the environment we can't see, that is what's going on under the surface of the ocean. And in that case, we can have oil that comes ashore and then gets pulled back offshore but is now denser because it's accumulated sand and other mineral matter. And that can be sticking around in the coastal ocean. We don't really understand how much of that there is or exactly where it goes. And that concerns me. Rep. Mike Levin (D-CA): But Dr. Valentine, how concerned Do you think California should be that companies that own the offshore platforms, wells and pipelines might go bankrupt and pass decommissioning costs on to taxpayers? Dr. David L. Valentine: I think that we need to be very concerned. And this is not just a hypothetical, this is already happening. There are two instances that I can tell you about that I've been involved with personally. The first stems from the pipeline 901 rupture, also known as the Refugio, a big oil spill that happened in 2015. When that pipeline ruptured, it prevented oil from being further produced from platform Holley, off the coast of Santa Barbara just a few miles from my home. That platform when it was completely shut in, all 30 wells, was unable to produce any oil and the company, a small operator, went bankrupt. And then shortly thereafter, they went bankrupt again. And this time, they just gave up and they did something called quit claiming their lease back to the state of California. Meaning that the plugin abandonment and property commissioning fell into the lap of the State of California in that case, and that is an ongoing, ongoing saga. The second example I would give you is in Summerland. In 1896, the first offshore oil wells in this country were drilled from piers in Summerland. Those have been leaking over the years. And as recently as last year, there were three leaky oil wells coming up in Summerland. The state of California has found money to try alternative plug in abandonment strategies because anything traditional is not going to work on something that is 125 some odd years old. So that would be the second example where this is now falling into the taxpayers lap yet again. October 14, 2021 Witnesses: Dr. Donald Boesch Professor and President Emeritus, University of Maryland Center for Environmental Science Dr. Greg Stunz Endowed Chair for Fisheries and Ocean Health, and Professor of Marine Biology Harte Research Institute for Gulf of Mexico Studies Texas A&M University Robert Schuwerk Executive Director, North America Office Carbon Tracker Initiative Ms. Jacqueline Savitz Chief Policy Officer, Oceana Clips Rep. Pete Stauber (R-MN): I can certainly provide a summary of things that will help keep energy prices down: issue onshore and offshore lease sales; reinstate the Presidential permit for the Keystone XL Pipeline; renew our commitment to exporting American energy, instead of importing foreign energy; reform a broken permitting process; and stop burdening domestic producers. Dr. Donald Boesch: Oil and gas production from wells in less than 1000 feet of water declined as fuels discovered in the 80s and even earlier were depleted. Crude oil production in these relatively shallow waters declined by over 90% both in the Gulf and and in Southern California. Natural gas production in the OCS, which mainly came from the shallow water wells, declined by 80%. Offshore fossil energy production is now dominated in the deep water off the Gulf of Mexico, up to 7500 feet deep. Deepwater production grew by 38% just over the last 10 years since the Deepwater Horizon disaster. Dr. Donald Boesch: Since the lifting of the crude oil export ban in 2016, last year there was 78% more crude oil exported from Gulf terminals, exported overseas, than actually produced in the US OCS and three times as much natural gas exported, than produced offshore. Dr. Donald Boesch: So, the depletion of shallow water gas has left this legacy of old wells and declining resources and the infrastructure requires decommissioning and removal. Much of this infrastructure is not operated by the original leaseholders, but by smaller companies with lesser assets and technical and operational capacity. Dr. Donald Boesch: Off Southern California there are 23 platforms in federal waters, eight of which are soon facing decommissioning. In the Gulf, on the other hand, there are 18,162 platforms and about 1000 of them will probably be decommissioned within this decade. Dr. Donald Boesch: According to the GAO, as you pointed out, there are 600 miles of active pipelines in federal waters of the Gulf, and 18,000 miles of abandoned plant pipelines. The GAO found the Department of the Interior lacks a robust process for addressing the environmental and safety risk and ensuring clean up and burial standards are met. And also monitoring the long term fate of these, these pipelines. Dr. Donald Boesch: At recent rates of production of oil and gas, the Gulf?s crude oil oil reserves will be exhausted in only six or seven years. That is the proven reserves. Even with the undiscovered and economically recoverable oil that BOEM (Bureau of Ocean Energy Management) estimates in the central and western Gulf, we would run out of oil about mid century. So unless some miracle allows us to capture all of the greenhouse gases that would be released, we really can't do that and achieve net zero emissions, whether it be by resource depletion, governmental or corporate policy, or investor and stockholder decisions. Offshore oil and gas production is likely to see it see a steep decline. So the greenhouse gas emissions pathway that we follow and how we deal with the legacy and remaining infrastructure will both play out over the next decade or two. Dr. Greg Stuntz: In fact, these decades old structures hold tremendous amounts of fish biomass and our major economic drivers. A central question is, how do these structures perform in relation to mother nature or natural habitat and I'm pleased to report that in every parameter we use to measure that success. These artificial reefs produce at least as well are often better than the natural habitat. We observe higher densities of fish, faster growth and even similar output. Thus, by all measures, these data show artificial reefs are functioning at least equivalent on a per capita basis to enhance our marine resources. Rob Schuwerk: When a company installs a platform and drills well, it creates an ARO, an obligation to reclaim that infrastructure when production ends. This costs money. But companies aren't required to get financial assurance for the full estimated costs today. Money to plug in active wells today comes from cash flows from oil and gas production. But what happens when that stops? The International Energy Agency sees peak oil and gas demand as early as 2025. This will make it harder to pay for decommissioning from future cash flows. Decommissioning is costly. The Bureau of Safety and Environmental Enforcement (BSEE) data indicate that offshore AROs could range from $35 to over $50 billion while financial assurance requirements are about $3.47 billion. That is less than 10% of expected liability. The GAO believes these figures may actually underestimate the true costs of retiring the remaining deepwater infrastructure. Rob Schuwerk: Only about a third of the unplug wells in the Gulf of Mexico have shown any production in the last 12 months. Why haven't the other two thirds already been retired? Because of uncertainty as to when to close and poor incentives. Infrastructure should be decommissioned when it's no longer useful. But the regulator has difficulty making that determination. This uncertainty explains why BSEE waits five years after a well becomes inactive to deem it no longer useful for operations with years more allowed for decommissioning. These delays increase the risk that operators will become unable to pay or simply disappear. We've seen this already with a variety of companies including Amplify Energy's predecessor Beta Dinoco off California and Fieldwood recently with Mexico. Rob Schuwerk: There's also a problem of misaligned economic incentives. As it is virtually costless to keep wells unplugged, companies have no incentive to timely plug them. AROs are like an unsecured, interest free balloon loan from the government with no date of maturity. There's little incentive to save for repayment because operators bear no carrying cost and no risk in the case of default. If the ARO loan carried interest payments commensurate with the underlying non performance risk, producers would be incentivized to decommission non economic assets. The solution is simple, require financial assurance equivalent to the full cost of carrying out all decommissioning obligations. This could take the form of a surety bond, a sinking fund or some other form of restricted cash equivalent. If wells are still economic to operate, considering the carrying cost of financial assurance, the operator will continue production, if not they?ll plug. In either case, the public is protected from these costs. Rob Schuwerk: A key risk here is operator bankruptcy that causes liabilities to be passed on to others. And we could see this in the recent Fieldwood bankruptcy. Fieldwood was formed in 2012 and in 2013 acquired shallow water properties from Apache Corporation. It went through chapter 11 bankruptcy in 2018, and then undeterred, acquired additional deepwater platforms from Noble Energy. Fieldwood returned to bankruptcy in 2020. It characterized the decommissioning costs it shared with Apache as among the company's most significant liabilities. The bankruptcy plan created new companies to receive and decommission certain idle offshore assets. If they failed, prior operators and lessors would have to pay. Several large oil and gas companies objected to this proposal. They were concerned that if Fieldwood couldn't pay they would. Ultimately the plan was proved. The case illustrates a few key dynamics. First, if bankrupt companies cannot pay, others, including taxpayers, will. How much of the possibly $50 billion in offshore decommissioning liability is held by companies that are only a dragged anchor, a hurricane a leaking pipeline or oil price shock away from default? And second, as detailed in my written testimony, private companies who face liability risks understand them better than the government does. When they transfer wells, they demand financial protections that are in fact greater than what the government requires today. Jacqueline Savitz: Supplemental bonds are necessary to protect taxpayers from the risk of spills but BOEM is overusing the waiver provisions that allow a financial strength test to waive requirements for supplemental bonds. BOEM regulations require that lessees furnish a relatively small general bond and while BOEM has discretion to acquire supplemental bonds, it generally waives those. General bonds that lessees are required to furnish don't come close to covering the cost of decommissioning and haven't been updated since 1993. Since that year, the cost of decommissioning has gone up in part because development has moved into deeper waters, only about 10% of offshore oil production in the Gulf was in deepwater in 1993. But by 2014, that figure rose to 80%. Regulations need to be updated to ensure the federal government and taxpayers are not left picking up the tab on decommissioning. According to GAO, only 8% of decommissioning liabilities in the Gulf of Mexico were covered by bonds or other financial assurance mechanisms, with the other 92% waived or simply unaccounted for. Jacqueline Savitz: BSEE does not conduct oversight over decommissioning activities underway and it does not inspect decommissioned pipelines so the Bureau can?t ensure that the industry has complied with required environmental mitigation. Jacqueline Savitz: Leak detection technologies that the oil and gas industry touts as safer have not been proven to prevent major leaks. All pipelines in the Pacific region are reportedly equipped with advanced leak detection equipment. Though two weeks ago we saw exactly what can happen even with the so-called ?Best Technology.? Dr. Donald Boesch: In Hurricane Ida, all of a sudden appeared an oil slick, and it lasted for several days. And apparently it was traced to an abandoned pipeline that had not been fully cleared of all the residual oil in it so that all that oil leaked out during that incident. Dr. Donald Boesch: One of the challenges though, is that this older infrastructure is not operating in the same standards and with the same capacity of those of the major oil companies that have to do that. So for example, when I noted that they detected this methane being leaked, they didn't detect it from the new offshore deepwater platforms which have all the right technology. It's in the older infrastructure that they're seeing. Rob Schuwerk: There's actually one thing that exists offshore, joint and several liability, that only exists in certain jurisdictions onshore. So in some ways the situation onshore is worse. Because in some states like California you can go after prior operators if the current operator cannot pay, but in many jurisdictions you cannot. And our research has found that there is about $280 billion in onshore liability, and somewhere around 1% of that is covered by financial assurance bonds so, there is definitely an issue onshore rather than offshore. Rob Schuwerk: The issue is just really giving them a financial incentive to be able to decommission. And that means they have to confront the cost of decommissioning and internalize that into their decision on whether continuing to produce from a well is economic or not. And so that means they need to have some kind of financial insurance in place that represents the actual cost. That could be a surety bond where they go to an insurer that acts as a guarantor for that amount. It could be a sinking fund, like we have in the context of nuclear where they go start putting money aside at the beginning, and it grows over time to be sufficient to plug the well at the end of its useful life. And there could be other forms of restricted cash that they maintain on the balance sheet for the benefit of these liabilities. Jacqueline Savitz: Remember, there is no shortage of offshore oil and gas opportunity for the oil industry. The oil industry is sitting on so many, nearly 8.5 million acres of unused or non producing leases, 75% of the total lease acreage in public waters. They?re sitting on it and not using it. So even if we ended all new leasing, it would not end offshore production. Rob Schuwerk: Typically what we'll see as well to do companies will transfer these assets into other entities that have less financial means and wherewithal to actually conduct the cleanup. Rep. Katie Porter: So they're moving once they've taken the money, they've made the profit, then they're giving away they're basically transferring away the unprofitable, difficult, expensive part of this, which is the decommissioning portion. And they're transferring that. Are they transferring that to big healthy companies? Rob Schuwerk: No, often they're transferring it to companies that didn't exist even just prior to the transfer. Rep. Katie Porter: You mean a shell company? Rob Schuwerk: Yes. Rep. Katie Porter: Like an entity created just for the purpose of pushing off the cost of doing business so that you don't have to pay it even though you've got all the upside. Are you saying that this is what oil and gas companies do? Rob Schuwerk: We've seen this, yes. Rep. Katie Porter: And how does the law facilitate this? Rob Schuwerk: Well, I suppose on a couple of levels. On the one hand, there's very little oversight of the transfer. And so there's very little restriction from a regulatory standpoint, this is true, offshore and also onshore. So we see this behavior in both places. And then secondary to that there are actions that companies can take in bankruptcy that can effectively pass these liabilities on to taxpayers eventually and so some of it is to be able to use that event, the new company goes bankrupt. Rob Schuwerk: Certainly no private actor would do what the federal government does, which is not have a security for these risks. May 19, 2021 Witnesses: Laura Zachary Co-Director, Tim Stretton Policy Analyst, Clips Laura Zachary: There have long been calls for fiscal reforms to the federal oil and gas program. Compared to how states managed oil and gas leasing, the federal government forgoes at least a third of the revenue that could have been captured for taxpayers Laura Zachary: On January 27 of this year, the Biden administration signed Executive Order 14008 that pauses issuing new federal oil and gas leases. And importantly, the language implies a temporary pause, only on issuing new leases, not on issuing drilling permits. This is a critical distinction for what the impacts of a pause could be. Very importantly, federal permitting data confirms that to date, there has been no pause on issuing drilling permits for both onshore and offshore. And in fact, since the pause began, Department of Interior has approved drilling permits at rates in line with past administrations. Tim Stretton: Because taxpayers own resources such as oil and gas that are extracted from public lands, the government is legally required to collect royalties for the resources produced from leases on these lands. Project on Government Oversight?s investigations into the federal government's oversight of the oil, gas and mining industries have uncovered widespread corruption that allows industry to cheat U.S. taxpayers out of billions of dollars worth of potential income. Given the amount of money at stake and the oil and gas industry's history of deliberately concealing the value of the resources they've extracted with the intent of underpaying royalties, the government should be particularly vigilant in ensuring companies pay their fair share for the resources they extract. Rep. Bruce Westerman (R-AR): We are here today for the majority's attempt, which I believe is more of a publicity stunt to criticize the oil and gas industry than to talk about real facts and data. The playbook is a simple one: recycled talking points to vilify the industry and to paint a distorted picture of so-called good versus evil. I'm sure that we'll hear more about corporate subsidies that aren't. We'll hear about unfair royalty rates that aren't and we'll hear many other meme worthy talking points that fail the logic test. Rep. Bruce Westerman (R-AR): What we're -really talking about today is an industry that provides reliable and affordable energy to our nation. This isan industry that contributes to almost 10 million jobs and plays a vital role in our daily lives. In fact, we cannot conduct virtual hearings like this without the fossil fuel industry. And of course, when myself and my colleagues travel to Washington, DC, we rely on this industry to fly or to drive here. Rep. Bruce Westerman (R-AR): But they ignore the real world consequences of demonizing this industry. The results are devastating job loss and the loss of public education funding to name just a few. Rep. Pete Stauber (R-MN): I also had a roundtable discussion and learned how New Mexico schools received nearly $1.4 billion in funding from oil and gas just last year. Rep. Katie Porter (D-CA): Mr. Stretton, how long has your organization been conducting oversight of oil and gas production on federal lands? Tim Stretton: For decades, I mean, we started doing this work in the early 90s. And actually, some of our earliest work in the space was uncovering in excess of a billion dollars in unpaid royalties to your home state of California. Rep. Katie Porter (D-CA): And you mentioned, what are some of the patterns? You've been doing this for decades? What are some of the patterns that you observe over time? Tim Stretton: The oil and gas industry working with each other to really undervalue the resources they were selling, fraudulently telling the government the value of those resources, which left billions of dollars in unpaid revenue going to the federal government. Rep. Paul Gosar (R-AZ): There are some people who have made environmentalism a religion. Rather than focus on solutions that can make lives better for people, some would prefer to vilify an industry that provides immeasurable benefits to people's livelihood in the function of modern day society. Rep. Paul Gosar (R-AZ): The other side looks at globalism, you know this environmental movement globally. So it makes more sense to me at least and folks I come from that we produce it cleaner more efficiently than anybody else in the world. And so that geopolitical application, if you're an environmentalist, you would want more American clean oil and gas out there versus Russian dirty or Chinese dirty gas. Rep. Blake Moore (R-UT): In January state education superintendents in Wyoming, Miami, North Dakota, Alaska, and Utah submitted a letter to President Biden outlining their concerns with the administration's oil and gas ban which has reduced funding used to educate our rising generation. Rep. Yvette Herrell (R-NM): I'm glad to be able to highlight the true success story of the oil and gas industry in my home state of New Mexico. To put it simply, the oil and gas industry is the economic backbone of New Mexico and has been for decades. The industry employs 134,000 People statewide and provides over a billion dollars each year to fund our public education. Rep. Yvette Herrell (R-NM): Many of my Democratic colleagues have stated that green energy jobs can replace the loss of traditional energy jobs, like the 134,000 Oil and Gas jobs in my state. Many also say that we need to be transitioning to a completely carbon free energy grid. Can you tell me and the committee why both of those ideas are completely fantasy? Cover Art Design by Only Child Imaginations Music Presented in This Episode Intro & Exit: by (found on by mevio)
2021-11-15
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