WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) wrote to Internal Revenue Service (IRS) Commissioner Danny Werfel expressing concern regarding the current backlog of Employee Retention Credit (ERC) claims and persistent delays for Virginia taxpayers awaiting payment.  Both Senators regularly hear from constituents regarding their unprocessed claims and lack of transparency and communication from the IRS regarding the status of these claims.

“While we applaud the work IRS has done since June 20th to root out improper claims and identify valid claims, we continue to hear from an increasing number of Virginians frustrated by the lack of clarity on when their individual claims will be adjudicated,” the Senators wrote.

“As you know, businesses and other organizations need answers about their ERC claims to determine whether to undertake investments in operations, workforce, and capital projects. Unfortunately, many of our constituents are telling us they cannot make informed decisions because they have no knowledge as to when and if their claims will be processed. Many Virginia organizations with ERC claims have been waiting a year or more with no response whatsoever from the agency. Despite our best efforts to advocate on behalf of these constituents, engagement from our offices have similarly yielded little to no clarity on when claims will be processed. Simply put, this is unacceptable,” they continued.

The ERC was created in response to COVID-19 to incentivize employers to keep their employees on payroll and off unemployment during the height of the pandemic. Virginia small businesses kept those promises, but years later, due to IRS processing delays, many are still waiting to receive the tax credits they believe they are due.

The IRS asserts that in the wake of the pandemic the program was overwhelmed by improper and, at times, fraudulent claims. In order to address this, last fall, the IRS announced a moratorium on processing claims submitted after Sept. 14, 2023, however this moratorium offered no clear path forward to those who had submitted legitimate claims. On June 26^th, 2024 National Taxpayer Advocate Erin M. Collins reported that the backlog of ERC claims awaiting adjudication had grown to about 1.4 million.

The IRS has taken action in recent months to address the backlog. On June 20, 2024, the IRS announced the end of a detailed review of over 1 million ERC claims and confirmed that a significant portion were improperly filed. The Service stated it would begin to deny high-risk claims while “judiciously processing” claims found with low levels of risk. More recently, the Service announced that it was moving forward with processing ERC claims submitted before January 31, 2024, including processing a block of 50,000 low-risk claims for payment. While the Senators welcome this step forward, the lack of clarity and information from the IRS is still a major concern.

In their letter the Senators also specifically asked that the IRS address the following questions:

• The IRS’ June 20th announcement indicated that over 1 million ERC claims have been categorized into three designated categories: 10%-20% are “Highest-risk” 60%-70% are “Unacceptable risk,” and 10%-20% are “low risk”. On August 8th, IRS announced that 28,000 high-risk claims received disallowance letters, “thousands” of unacceptable-risk claims are under audit, and 50,000 low-risk claims are being processed and should receive payment soon. This still leaves hundreds of thousands of claims the IRS has yet to act on. What is the timeline for the remaining applicants? When will all pending claims have received an initial response, whether it be approval, denial, or request for further information?
• How will filers not part of either initial group be made aware that their claims will take longer?
• How were the 50,000 claims IRS has said will soon receive payment identified? Was any consideration given to the financial situation of the taxpayers in that block? Now that processing of valid claims is beginning to ramp up, will there be a pathway for taxpayers reporting with documented financial hardship to have their claims adjudicated more quickly?
• We have made numerous inquiries on behalf of Virginians and receive new requests frequently. How does the agency intend to partner with our offices to ensure that these inquiries are reviewed and addressed in a timely manner?

Sens. Warner and Kaine have consistently pushed for faster processing of outstanding ERC claims. In April of 2023, Sen. Warner directly raised this issue with Commissioner Werfel during a Senate Finance Committee Hearing, as well as in multiple direct calls to the commissioner. Sens. Warner and Kaine have also been tireless advocates for improving IRS customer service and accelerating return times. The Senators strongly supported the Inflation Reduction Act — legislation which provides funding to modernize IRS systems and improve customer service when paying taxes. This will help ensure the IRS has the resources it needs to process tax returns quickly, get rebates to taxpayers faster, and address challenges Virginians have when filing taxes. These investments have improved IRS response rates this tax season from answering two out of every 10 calls to answering nine out of every 10 calls.

Additionally, Sen. Warner has been pressing the IRS to address pandemic-related processing delays for several years. Sen. Warner first raised concerns over backlogs at the IRS in February 2021, as millions of Americans waited for delayed stimulus payments and processing of their tax returns. In January 2022, as the tax filing season opened, Sen. Warner again called on Treasury Secretary Janet Yellen and then-Commissioner Rettig to quickly address reports of unprocessed tax returns for the 2020 filing season. Later that month, Sens. Warner and Kaine called on the IRS to provide relief for taxpayers amidst the backlog – a request they again reiterated in a bipartisan and bicameral March letter.

A copy of the letter is available here and below:

Dear Commissioner Werfel,

We write to you today regarding Employee Retention Credit (ERC) claims awaiting adjudication with the Internal Revenue Service (IRS). Our offices regularly hear from small businesses, non-profits, colleges, and other taxpayers across Virginia who have faced negative financial impacts while awaiting updates regarding their claims. We appreciate the recent announcement that IRS is moving forward in processing some pending claims, although many of our constituents are still awaiting clarity on the timing of their individual claim.

In her midyear report to Congress dated June 26, 2024, National Taxpayer Advocate Erin M. Collins reported that the backlog of ERC claims awaiting adjudication had grown to about 1.4 million total claims. We understand that this backlog exists in large part due to the moratorium put into place on September 14, 2023, which halted the processing of new ERC claims and substantially slowed the processing of previously filed claims due to concern about claim validity.

On June 20, 2024, IRS announced the end of their detailed review of over 1 million ERC claims and confirmed that a significant portion were improperly filed. The Service stated it would begin to deny high-risk claims while “judiciously processing” claims found with low levels of risk, projecting that some payments would go out later this summer. On August 8, 2024, the IRS provided further details about the first groups to be processed, including 28,000 claims showing a high level of risk that have been denied, in addition to 50,000 low-risk claims that will start being processed in the coming weeks. The announcement further stated that another “large block” of low-risk claims would be processed in the fall.

While we applaud the work IRS has done since June 20^th to root out improper claims and identify valid claims, we continue to hear from an increasing number of Virginians frustrated by the lack of clarity on when their individual claims will be adjudicated.

As you know, businesses and other organizations need answers about their ERC claims to determine whether to undertake investments in operations, workforce, and capital projects. Unfortunately, many of our constituents are telling us they cannot make informed decisions because they have no knowledge as to when and if their claims will be processed. Many Virginia organizations with ERC claims have been waiting a year or more with no response whatsoever from the agency. Despite our best efforts to advocate on behalf of these constituents, engagement from our offices have similarly yielded little to no clarity on when claims will be processed. Simply put, this is unacceptable. 

With these concerns in mind, we respectfully ask that you address the following:

• The IRS’ June 20^th announcement indicated that over 1 million ERC claims have been categorized into three designated categories: 10%-20% are “Highest-risk” 60%-70% are “Unacceptable risk”, and 10%-20% are “low risk”. On August 8^th, IRS announced that 28,000 high-risk claims received disallowance letters, “thousands” of unacceptable-risk claims are under audit, and 50,000 low-risk claims are being processed and should receive payment soon. This still leaves hundreds of thousands of claims the IRS has yet to act on. What is the timeline for the remaining applicants? When will all pending claims have received an initial response, whether it be approval, denial, or request for further information?
• How will filers not part of either initial group be made aware that their claims will take longer?
• How were the 50,000 claims IRS has said will soon receive payment identified? Was any consideration given to the financial situation of the taxpayers in that block? Now that processing of valid claims is beginning to ramp up, will there be a pathway for taxpayers reporting with documented financial hardship to have their claims adjudicated more quickly?
• We have made numerous inquiries on behalf of Virginians and receive new requests frequently. How does the agency intend to partner with our offices to ensure that these inquiries are reviewed and addressed in a timely manner?

We appreciate the work that you and IRS staff are doing to carefully review the claims and determine whether they meet Congress’s eligibility requirements. Safeguarding taxpayer funds is an important function of the agency, and the ERC program is among the most complex ever administered. However, Virginia small businesses and nonprofits simply cannot afford to wait indefinitely. The longer these claims languish, the greater the chance our constituents have to lay off workers or slow operations, hurting Virginia’s economy. We look forward to working with you to find an appropriate balance between offering transparency to taxpayers while ensuring that each return receives an appropriate review and is adjudicated accordingly.

Sincerely,

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WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) announced the inclusion of key Virginia priorities in the Senate’s Fiscal Year 2025 draft funding bills. So far, 11 of 12 appropriations bills have been passed out of the Senate Appropriations Committee on a broad bipartisan basis. Senate appropriators continue to work to negotiate the 12th and final bill, which would provide funding for homeland security priorities.

“We’re thrilled to see the Senate move forward on government funding legislation that includes essential funding to support our servicemembers and military families, implement our seismic investments in infrastructure and manufacturing, promote public safety, invest in affordable housing, curb fentanyl trafficking, improve customer service at the IRS, and much more. We’re also very glad this draft legislation includes $125 million for communities in every corner of the Commonwealth to carry out community-based, high-impact projects that grow our economy and benefit Virginians. We are looking forward to advocating for these priorities and working with the House of Representatives to provide robust funding bills that address the needs of Virginia and the country,” said Sens. Warner and Kaine. 

As part of the Fiscal Year 2025 appropriations process, members of Congress worked with their constituents to request funding for local community projects, otherwise known as earmarks, in a manner that promotes transparency and accountability. The Senators worked to secure more than $125 million for community projects across the Commonwealth in the eleven bills that have been released by the Senate so far. In addition to battling for these priorities, the Senators will work to ensure funds obtained by Virginia House members also remain in the final spending bills. 

More information on Virginia-based projects that could receive Congressionally Directed Spending is available below:

• For projects in Northern Virginia, click here.
• For projects in Central Virginia, click here.
• For projects in the Shenandoah Valley, click here.
• For projects in Southwest Virginia and Southside, click here.
• For projects in Hampton Roads, click here.
• For projects that impact communities in multiple regions across the Commonwealth, click here.

 
Additionally, many other provisions championed by Sens. Warner and Kaine were included in the 11 government funding bills, including but not limited to: 

Boosting Local Economies: Includes $200 million for the Appalachian Regional Commission and $21 million for the Southeast Crescent Regional Commission to support their work to build economic partnerships, create opportunity, and foster economic development.  

Fighting the Flow of Fentanyl: Includes $1.4 billion to strengthen law enforcement cooperation between governments and to counter drug trafficking. This includes $170 million – $45 million more than fiscal year 2024 – to support efforts to stop global flows of fentanyl and other synthetic drugs, as well as their precursor materials, including through implementation of the FENTANYL Results Act. Sen. Kaine also secured $88 million for the Caribbean Basin Security Initiative, which fosters joint government efforts on counternarcotics, migration and law enforcement. Sen. Kaine recently traveled to Brownsville and McAllen, Texas to discuss fentanyl interdiction at the southern border with various law enforcement agencies and international partners from Mexico. Last year, significant portions of Sen. Kaine’s bipartisan Disrupt Fentanyl Trafficking Act were signed into law to direct increased federal attention to fentanyl trafficking and strengthen U.S.-Mexico cooperation on drug trafficking. The senators also helped pass a supplemental national security funding package that included the FEND Off Fentanyl Act, bipartisan legislation cosponsored by Sens. Warner and Kaine, to strengthen the Treasury Department’s ability to sanction transnational criminal organizations and others that launder money to facilitate opioid trafficking.

Implementing the CHIPS and Science Act of 2022: Includes $11.2 billion to implement the bipartisan CHIPS and Science Act of 2022, championed by Sens. Warner and Kaine. Funding will allow the U.S. to keep pace with China and other competitors in scientific fields that power the economy, such as artificial intelligence, quantum computing, microelectronics, clean energy, and advanced communications. Sen. Warner first introduced the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act in June 2020 along with Sen. John Cornyn (R-TX).  

Implementing the Infrastructure Investment and Jobs Act (IIJA): Provides $17 billion for the Federal Transit Administration, including $2.262 billion for Capital Investment Grants, a $57 million increase over fiscal year 2024. When combined with the $1.6 billion in IIJA advanced appropriations, a total of $3.862 billion is available for Capital Investment Grants, which fund heavy, commuter, and light rail; streetcars; and bus rapid transit projects. The bill also provides $550 million for the RAISE Grant program, which – when combined with the $1.5 billion in IIJA advanced appropriations – will see $2.05 billion in total funding. As the only multimodal DOT program available to local governments, the program allows communities to make transformative investments in their transportation infrastructure to help improve mobility and safety. The IIJA was negotiated and strongly supported by Sens. Warner and Kaine.

Maintaining Our Highways and Bridges: Includes $63.171 billion for federal-aid highways, which includes $61.314 billion in funding for the Highway Trust Fund and an additional $1.118 billion for Highway Infrastructure Programs, as well as $400 million for the competitive bridge bundling grant program.

Strengthening Transportation and Recreation Infrastructure: Provides $150 million for the Washington Metropolitan Area Transit Authority (WMATA) and $25 million for the Active Transportation Infrastructure Investment Program, which supports multi-purpose trails. 

Making Our Communities Safer: Provides $739.5 million – the highest funding level ever – for Violence Against Women Prevention and Prosecution programs to prevent violence and better support survivors. This legislation also provides $251 million for State and Local Law Enforcement Assistance and Community Oriented Policing Services (COPS) Office grant programs related to police-community relations. The bill also includes $10 million to train law enforcement on appropriately responding to situations involving mentally ill or disabled individuals, $45 million for Community Policing Development, and $55 million for the Community Violence Intervention and Prevention Initiative.

Support for Missing Persons Program: Includes $1 million to help with the nationwide implementation of the Ashanti Alert system. In 2018, Sen. Warner secured unanimous Senate passage of the Ashanti Alert Act, legislation that created a new federal alert system for missing or endangered adults between the ages of 18-64. The bill was signed into law on December 31, 2018. 

Investing in Child Care and Early Learning: Includes $10.35 billion for the Child Care and Development Block Grant (CCDBG), a $1.6 billion increase over fiscal year 2024, which will help families in Virginia and across the country find and afford child care. Also provides $12.97 billion for Head Start, a $700 million increase over fiscal year 2024, which will support Head Start teachers and staff throughout the country. Sen. Kaine has championed efforts in Congress to increase funding for the CCDBG program and is leading a bipartisan proposal to address the child care crisis.

Supporting Essential Health Care Programs: Includes significant resources to improve health care access and affordability and strengthen the health care workforce by maintaining investments in core programs, including $1.86 billion for Community Health Centers and $1.4 billion for Health Professions Workforce Development. The bill also includes a $21.3 million increase for rural health programs to boost recruitment of health care providers to practice in rural areas and support rural hospitals.

Investing in Higher Education: Provides a $100 increase to the maximum Pell Grant award for a maximum award of $7,495 for the 2025-2026 award year. Pell Grants are expected to help over seven million students pursue postsecondary education and further their careers. The bill also includes an additional $100 million for the administration of student aid programs, which will support a wide range of activities including: implementing the Free Application for Federal Student Aid (FAFSA), disbursing student aid, ensuring services are available to student loan borrowers, and fixing longstanding issues in student loan forgiveness programs.

Investing in Affordable Housing: Includes $1.425 billion for the HOME Investment Partnerships Program, which provides funding to state and local governments for housing construction, and $4.6 billion in Community Development Block Grants (CDBG), which can be used to support affordable housing, community development, and economic development. Also includes $4.32 billion (a $268 million increase over fiscal year 2024) for Homeless Assistance Grants (HAG) to help families and individuals experiencing or at risk of homelessness. Sens. Warner and Kaine, a former fair housing attorney, are strong advocates for affordable housing funding each year.

Supporting Economic Development: Provides $483 million for community economic development through the Economic Development Administration, an increase of $15 million from fiscal year 2024. This includes $100 million for the Regional Technology and Innovation Hubs Program – more than double the fiscal year 2024 funding level and enough for EDA to fund two to five additional implementation grants. In October 2023, the Advanced Pharmaceutical Manufacturing Tech Hub located in the Richmond-Petersburg region received a federal Tech Hub designation, and the Virginia Additive Manufacturing and Applied Materials Strategy Development Consortium located in the New River Valley received $500,000 in funding.

Delivering Nutrition Assistance: Provides full funding for several critical nutrition programs, including the Supplemental Nutrition Assistance Program (SNAP), Supplemental Nutrition Program for Women, Infants, and Children (WIC), and Child Nutrition Programs – like the School Lunch Program, School Breakfast Program, and Summer Electronic Benefits Transfer (EBT) program.

Fighting Global Hunger: Provides $1.721 billion for the Food for Peace program and $250 million for the McGovern-Dole Food for Education program, while the State and Foreign Operations bill provides $8.9 billion for humanitarian assistance programs, including increased investments in addressing global hunger and enhancing food security.  

Preventing and Treating Substance Use: Provides $610.5 million in dedicated grant program funding to respond to substance use disorder, including opioids, and to crack down on drug trafficking.

Economic Support for Underserved Communities: Provides $354 million – a $30 million increase over fiscal year 2024 – for the U.S. Department of the Treasury Community Development Financial Institution (CDFI) Fund. Sens. Warner and Kaine requested this funding. Sen. Warner has led efforts in Congress to support CDFIs through legislation including the Jobs and Neighborhood Investment Act and the creation of the bipartisan Senate Community Development Finance Caucus.  

Small Businesses: Provides $1.6 billion – a $61 million increase over fiscal year 2024 – to the Small Business Administration (SBA) to help small businesses thrive. This funding will support SBA’s lending programs, which increase access to capital for small businesses, as well as their entrepreneurial development programs, which include services that help entrepreneurs start and grow their businesses, such as the Small Business Development Center and Women’s Business Centers networks.

Addressing Internal Revenue Service (IRS) Delays and Customer Service Issues: Includes $12.3 billion for the IRS, which will enable the agency to continue to update ancient computer systems, improve customer service, and reduce wait times for refunds and other services. Sens. Warner and Kaine have consistently pushed the IRS to address poor customer service and severe delays within the department.  

Chesapeake Bay Restoration: Includes $92.5 million for the Environmental Protection Agency (EPA’s) Chesapeake Bay program, which is the primary federal program that coordinates Chesapeake Bay restoration and protection efforts throughout the Bay watershed.

Supporting Our National Parks: Includes $2.99 billion for the operation of the National Park System, an increase of more than $100 million from Fiscal Year 2024. 

Shenandoah National Park Improvements: Provides $20 million from the Great American Outdoors Act, which was crafted and strongly supported by Sens. Warner and Kaine, to rehabilitate the water system that serves the Shenandoah National Park headquarters, which includes a visitor contact station, fire operations, communication center, maintenance facility, and staff housing.

Strengthening Our Ports: Provides $1.14 billion for the Maritime Administration (MARAD), including $200 million for the Port Infrastructure Development Program (PIDP), which –– when combined with the $450 million in IIJA advanced appropriations – makes a total of $650 million available to support the buildout and modernization of our nation’s ports including the Port of Virginia.

Investing in Scientific Discovery: Includes $8.6 billion for the Department of Energy’s Office of Science, which is an increase of $360 million over fiscal year 2024. This funding will help continue implementation of the CHIPS and Science Act. The Office of Science is the largest federal sponsor of basic research in the physical sciences, including at Jefferson Lab in Newport News, Virginia.

Tangier Island: Includes $10.3 million to protect Tangier Island from erosion and sea level rise. Specifically, the funding will be used for design, environmental authorizations, plans and specifications, and award and administration of a contract to use dredged material to stabilize the shoreline. Sens. Warner and Kaine advocated for the funding and previously secured $800,000 to study and permit the use of dredged material. Sen. Kaine most recently visited Tangier in August 2022.

Northern Virginia Emergency Response System (NVERS): Includes funding to reimburse NVERS—a non-profit partnership of Northern Virginia local governments, hospitals, and the Commonwealth of Virginia—for medical services it provided to evacuees fleeing Afghanistan to the U.S. in August 2021. Sens. Warner and Kaine wrote to the State Department urging it to reimburse NVERS.

Addressing Pediatric Cancer: Provides $12.6 million to fund childhood cancer research through the Gabriella Miller Kids First Research Act, named after a child from Loudoun County who died from brain cancer in 2013. 

Support for Long COVID: Provides $13.5 million to the Agency for Healthcare Research and Quality (AHRQ) to continue its work to support multidisciplinary Long COVID clinics and expand access to comprehensive, coordinated, person-centered care for people living with Long COVID. This funding stems from Sen. Kaine’s bipartisan Long COVID Support Act.

Modernizing Public Health Infrastructure: Provides $175 million to the Centers for Disease Control and Prevention to modernize America’s public health data systems.  

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 WASHINGTON — U.S. Sens. Mark R. Warner (D-VA), Chairman of the Senate Select Committee on Intelligence, and James Lankford (R-OK), a member of the Senate Committee on Homeland Security & Governmental Affairs, today announced the Federal Contractor Cybersecurity Vulnerability Reduction Act of 2024, legislation they will introduce to strengthen federal cybersecurity by ensuring that federal contractors adhere to guidelines set forth by the National Institute of Standards and Technology (NIST). Companion legislation, introduced in the House of Representatives, is being led by Rep. Nancy Mace (R-SC-01).

Vulnerability Disclosure Policies (VDP) provide a way for organizations to receive unsolicited reports of vulnerabilities within their software so that they can be patched before an attack takes place. Receiving reports on suspected security vulnerabilities in information systems is one of the best ways for developers and services to become aware of issues. Currently, civilian federal agencies are required to have VDPs, however there is no requirement for federal contractors – civilian or defense – to have VDPs for the information systems used in the fulfillment of their contracts. This legislation would require the implementation of VDPs among federal contractors and formalize actions to accept, assess, and manage vulnerability disclosure reports in order to help reduce known security vulnerabilities among federal contractors.

“VDPs are a crucial tool used to proactively identify and address software vulnerabilities,” said Sen. Warner. “This legislation will ensure that federal contractors, along with federal agencies, are adhering to national guidelines that will better protect our critical infrastructure, and sensitive data from potential attacks.”

“Federal agencies and contractors must be quickly made aware of cyber vulnerabilities, so they can resolve them. By strengthening cybersecurity efforts, contractors and agencies can keep their focus on serving the American people and keep data and systems safe from cybercrimes and hacking,” said Sen. Lankford.

Specifically the Federal Contractor Cybersecurity Vulnerability Reduction Act of 2024 would:

• Require the Office of Management and Budget (OMB) to oversee updates to the Federal Acquisition Regulation (FAR) to ensure federal contractors implement a vulnerability disclosure policy consistent with what is already required by federal agencies;
• Require the Secretary of Defense to oversee updates to the Defense Federal Acquisition Regulation Supplement (DFARS) contract requirements to ensure defense contractors implement the same. 

This legislation is the latest step in Sen. Warner’s efforts to mitigate to damage of potential cybersecurity attacks. He has been a leader in the cybersecurity realm throughout his time in the Senate, crafting numerous pieces of legislation aimed at addressing these threats facing our nation. Recognizing that cybersecurity is an increasingly complex issue that affects the health, economic prosperity, national security, and democratic institutions of the United States, Sen. Warner cofounded the bipartisan Senate Cybersecurity Caucus in 2016.  A year later, in 2017, he authored the Internet of Things (IoT) Cybersecurity Improvement Act. This legislation, signed into law by President Donald Trump in December 2020, requires that any IoT device purchased with federal funds meet minimum security standards. As Chairman of the Senate Select Committee on Intelligence, Sen. Warner also co-authored legislation that requires companies responsible for U.S. critical infrastructure report cybersecurity incidents to the government. This legislation was signed into law by President Joe Biden as part of the Consolidated Appropriations Act in March 2022.

“Palo Alto Networks applauds Senator Warner’s continued efforts to promote federal cyber resilience through the Federal Cybersecurity Vulnerability Reduction Act. This legislation has strong bipartisan support, and will benefit the entire cybersecurity ecosystem,” said Bruce Byrd, EVP and General Counsel of Palo Alto Networks. 

“This bipartisan legislation addresses a critical gap in our nation’s cybersecurity protections by bringing the practices of federal contractors in line with those of the agencies they serve and with guidelines issued by the National Institute of Standards and Technology,” said Ilona Cohen, Chief Legal and Policy Officer of HackerOne. “This proactive approach to security will ensure that businesses are actively protecting government systems, critical infrastructure, and sensitive data from exploitation by malicious actors. We applaud Senators Warner and Lankford for their leadership on this important issue.”

A copy of the legislation is available here. A one-pager of the legislation is available here.

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WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA), applauded the recent Senate passage of the Water Resources and Development Act (WRDA) of 2024, which would help maintain clean drinking water across the country and includes key provisions to deepen and widen channels in the Chesapeake Bay, strengthen Virginia’s coastal resiliency, improve recreational access to Virginia’s waterways, and support the Chesapeake oyster industry, among other Virginia priorities.

“The Water Resources and Development Act (WRDA) is a crucial package that provides key funding and resources for infrastructure projects across the country and the Commonwealth,” said Sen. Warner. “I’m glad to see the Senate-passed version of this legislation include provisions to keep our communities healthy and safe, while also authorizing key priorities for the Commonwealth. This legislation will help support Virginia’s efforts to combat the effects of rising sea levels and increased flooding from significant weather events, as well as support our oyster industry and recreational development. I look forward to final passage of this legislation so that we can start benefitting Virginia’s communities.”

“Reliable water infrastructure is key to the health and well-being of any community,” said Sen. Kaine. “I’m glad that this year’s Senate-passed water infrastructure bill not only authorizes crucial resources to help maintain clean drinking water across the country, but also contains key Virginia priorities. From dredging in the Norfolk Harbor and supporting Virginia’s oyster farmers, to boosting recreation and helping to keep coastal communities safe from rising sea levels, the Senate has passed a bill that’s great for the Commonwealth. I urge my colleagues in the House to pass this legislation as quickly as possible so it can be signed into law.”

The legislation would help repair aging drinking water, wastewater, and irrigation systems across the country, in addition to supporting the following Virginia priorities:

• Increasing the authorized funding levels for the Chesapeake Bay Oyster Recovery Program from $100 million to $120 million.
• Encouraging shallow draft dredging in the Chesapeake Bay to promote tourism, recreation, and fishing.  
• Expanding the Temporary Relocation Assistance Pilot Program for the City of Norfolk to boost the city’s climate resilience.
• Establishing an expedited completion track for Virginia Beach Coastal Storm Risk Management Study.
• Establishing an expedited completion track to modify the Norfolk Harbor Deepening and Widening Project to include Anchorage F.
• Authorizing the Army Corps to conduct a feasibility study on enhancing downstream recreation for Gathright Dam, Lake Moomaw, and the Jackson River in Alleghany County.
• Authorizing the Army Corps to include federal agency and military installations in the Virginia Peninsula Coastal Storm Risk Management Project.

The next step for the legislation is a vote in the U.S. House of Representatives.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Chairman of the Senate Select Committee on Intelligence, issued the following statement after the Biden administration successfully carried out a deal to bring home individuals wrongfully detained in Russia: 

“The sham arrest and conviction of Wall Street Journal reporter Evan Gershkovich was a devastating blow to freedom of the press across the globe. Today, thanks to the work of the Biden-Harris administration, Evan is free along with former U.S. Marine Paul Whelan, journalist Alsu Kurmasheva, Virginia resident and pro-democracy activist Vladimir Kara-Murza and 12 others who were wrongfully detained by Russia for too long in yet another testament to the cruelty and cowardice of Vladimir Putin. I am grateful to President Biden and our allies abroad for their efforts to rectify a gross injustice and put an end to the nightmare for these brave individuals and their respective loved ones. I look forward to continue working with this administration to free those who remain unjustly held, including American schoolteacher Marc Fogel.”

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WASHINGTON – Today, Senator Rick Scott announced the introduction of the bipartisan Countering CCP Drones and Supporting Drones for Law Enforcement Act with Senator Mark Warner, Chair of the Senate Select Committee on Intelligence. The legislation would blacklist dangerous Chinese drone companies Da-Jiang Innovations (DJI) Technologies, Autel Robotics, and other CCP-linked drone industry participants and cut them off from U.S. telecommunication infrastructure by including these companies on the Federal Communications Commission’s (FCC) Covered List, which identifies telecommunication equipment that poses an unacceptable risk to the national security of the United States. The legislation also creates a short-term Department of Transportation grant program, specifically designed for first responders, to replace any existing Chinese drones and purchase American-made ones. Senators Scott and Warner also filed this legislation as an amendment to the FY2025 National Defense Authorization Act. 

Sen. Mark Warner said, “Drones have tremendous potential to support agriculture, make our communities safer, and grow our economy. Yet without further intervention, the drone industry could be susceptible to massive intervention from the Communist Party of China, directly threatening our national security and economy. I’m proud to introduce bipartisan legislation to restore American leadership in the drone industry and ensure that the CCP can’t wreak havoc by spying on Americans or otherwise disrupting key functions of drone technology.”

Sen. Rick Scott said, “Drones made in Communist China pose a significant threat to our freedoms and security and cannot be allowed to continue operating in American skies. Companies based in Communist China are at the will of Xi’s evil regime, meaning one of the United States’ greatest adversaries has total access to every bit of data collected by devices. It should terrify every single American that the Chinese Communist Party, known for spying, stealing and espionage, could have access to footage of Americans, their land, their businesses and their families without their knowledge. I was glad to successfully pass my and Senator Warner’s American Security Drone Act to stop the use of drones made by companies in adversarial nations, like Communist China’s DJI, in the United States Government and military, which is critical to protecting our national security. Now, we must pass the Countering CCP Drones and Supporting Drones for Law Enforcement Act as a necessary next step to eliminate the threats we face from Communist China and further protect the security of the United States and every American family.”

A copy of the legislation is available here.  

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WASHINGTON — U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Committee on Banking, Housing, and Urban Affairs, introduced the Discount Window Enhancement Act of 2024, legislation to improve the effectiveness of the Federal Reserve Discount Window, a liquidity tool that provides short-term loans to depository institutions, such as commercial and community banks in order to help reduce the fallout of bank failures fueled by panic-induced bank runs.   

In the wake of multiple bank failures in 2023, including the collapse of Silicon Valley Bank, Sen. Warner voiced the need for legislation to improve the function of the Fed’s Discount Window.

“The failures of Silicon Valley Bank and Signature Bank last year highlighted the urgent need to reform the Federal Reserve’s discount window for the 21^st century economy, where bank runs can occur over hours, rather than days. My legislation will implement key reforms to make sure that banks can actually use the discount window, reduce the unnecessary stigma associated with that use, and improve the window’s operations to meet the challenges of the digital age. We need to modernize the window and return this important liquidity tool to its intended role,” said Sen. Warner.

The Discount Window Enhancement Act of 2024 will:

• Mandate Testing of the Discount Window: Mandates that eligible depository institutions operating in the United States engage in test borrowing at the Federal Reserve’s Discount Window:
  • Large Institutions (> $100 Billion): Quarterly.
  • Smaller and Larger Institutions ($10 Billion – $100 Billion): Semi-annual.
  • Small Institutions (Under $10 Billion): Not in scope.
• Require Regulators to Reflect Banks’ Ability to Use the Discount Window in Liquidity Evaluations: Regulators must “give credit” in their evaluations of bank liquidity preparedness to depositories that can use the discount window successfully – “positive consideration” must be given to successful testing and pre-pledged collateral;
• Require Financial Institution Risk Committees or Equivalent to Review and Approve Liquidity Contingency Plans: Depositories’ liquidity contingency plans are to include detailed policies and procedures for seeking advances and be submitted to Federal Reserve Board, Regional Federal Reserve Bank of membership, and primary supervisor;
• Require the Federal Reserve Board to Modernize Discount Window Operations;
• Require the Federal Reserve System to Simplify and Harmonize Collateral Processes with Federal Home Loan Bank System: The Federal Reserve Board must work with the FHFA and the FHLB system to simplify and harmonize policies and procedures for pledging and transferring collateral among FHLBs and Federal Reserve Banks.
• Require Review of Weekly Federal Reserve Balance Sheet Reporting: The Federal Reserve Board must comprehensively review the weekly reporting of its balance sheet activities, and consider changes to avoid market distortions that could inadvertently place individual financial institutions at a disadvantage.
• Require Federal Reserve Study and Report to Congress on Discount Window Stigma: Requires the Federal Reserve Board to conduct a study and submit a report to Congress about additional measures that could be taken to reduce discount window stigma and improve the process for obtaining advances on behalf of depository institutions.

Sen. Warner has also led efforts to hold those responsible for bank failures accountable. In the aftermath of the Silicon Valley Bank collapse, Sen. Warner cosponsored the DEPOSIT Act, the Bank Management Accountability Act, and the Failed Bank Executives Clawback Act, efforts to ensure that bank executives do not profit in the wake of bank failures.

“The Federal Reserve Discount Window is a critical tool that gives financial institutions of all sizes access to liquidity and prevents panic in the broader financial system. Stigma associated with accessing the window and some legacy operational issues have limited the power of this tool and forced the Fed to take dramatic steps to meet recent needs. This legislation would help modernize the window to ensure immediate access by all eligible institutions in today’s lightning-fast financial system,” said Betsy Duke, Former Federal Reserve Board Governor.

“As evident from events in March 2023, it is clear that the current discount window mechanism at the Federal Reserve has deficiencies that have led to severe stigma, increasing the risk of banking panics and deposit runs. This bill will provide a good basis for regulators to implement operational improvements and reduce frictions that hinder the effectiveness of discount window,” said William C. Dudley, Former President of the Federal Reserve Bank of New York.

“Senator Warner and other supporters of this bill should be commended. De-stigmatizing the Fed’s Discount Window so that it can be a more effective liquidity tool for banks is a major step forward. This bill is thoughtful and important, and one that makes U.S. banking safer and sounder,” said Eugene A. Ludwig, Former U.S. Comptroller of the Currency.

“We thank Senator Warner for introducing this bill that will ensure banks are operationally ready to borrow from the discount window to meet liquidity needs while also reflecting that readiness in corresponding liquidity regulations and requirements.  This is a sensible piece of legislation that seeks to actually respond to the regional banking crisis of March 2023 and help make our financial system work as it is intended,” said Greg Baer, President and CEO of the Bank Policy Institute.

“The 2023 banking crisis and the 2020 COVID crisis each revealed vulnerabilities in the current design of the discount window. The events of March 2023 in particular showed that bank runs can occur faster than they did in the past. To illustrate this point: SVB experienced a total outflow of 25% of deposits in one day. Given this, what is needed is an operational system that allows the transfer of collateral and funds at the push of a button.  At the same time, it is also imperative that the Federal Reserve maintain its independence as a liquidity provider to banks, given its clear mandate under Section 10B to act independently. This bill is a foundation in which regulators can build off of to bring the discount window into the 21st century,” said Hal S. Scott, Nomura Professor and Director of the Program on International Financial Systems at Harvard Law School; Director of the Committee on Capital Markets Regulation.

“This bill raises the bar on discount window effectiveness for bank, regulator, and (importantly) supervisor alike; it addresses several operational issues and sources of stigma. The bill makes clear that the default supervisory assumption should no longer be to assign zero value to the approximately $3 trillion of collateral already prepositioned at the Federal Reserve—an amount set to continue to grow, particularly under the direction of this bill. Importantly, the bill also calls for examination of the Fed’s current practice of publishing district-by-district activity, which risks ‘outing’ a bank’s discount window borrowing on a weekly basis—as opposed to only after a two-year lag as legislated under the Dodd-Frank Act,” said Steven Kelly, Associate Director of Research at the Yale Program on Financial Stability.

A copy of the legislation is available here. A one-pager of the legislation is available here.

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WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and John Thune (R-SD), alongside U.S. Reps. Scott Peters (CA-50) and Nicole Malliotakis (NY-11) introduced the Employer Participation in Repayment Act – bipartisan legislation to help Americans tackle their student loan debt by making permanent a provision that allows employers to contribute up to $5,250 tax-free to their employees’ student loans. 

In 2020, Sens. Warner and Thune along with Rep. Peters negotiated the inclusion of a provision in the CARES Act that allowed these contributions temporarily. Later that year, as part of the government spending package, they secured an extension allowing this benefit through January 1, 2026. By making this tax benefit permanent, today’s legislation would provide employees with much-needed relief and employers with a unique and permanent tool to attract and retain talented employees.

“Too many young Americans are struggling under the weight of student debt, preventing them from establishing savings, buying homes, and building wealth,” said Sen. Warner. “My Employer Participation in Repayment Act took an important step to help folks pay down their debt while also giving employers a powerful tool to recruit and retain the best talent, but it’s set to expire soon. I’m proud to be pushing to make this benefit permanent so we can grow our economy and support the middle class by supporting recent graduates and employers alike.”  

“Incentivizing employers to help repay their employees’ student loans was a common-sense step Congress took to address the high levels of student debt that borrowers face,” said Sen. Thune. “The Warner-Thune bill would permanently equip employers with this unique tool to help attract and retain talented employees while protecting American taxpayers from costly burdens. This is a win-win for graduates and their employers, and I hope it will once again garner strong, bipartisan support.”

“I relied on student loans to get through college when the cost of higher education was much lower than it is today. Now, the collective debt among Americans is $1.7 trillion, which limits our economic growth and young people’s economic prospects,” said Rep. Peters. “Over the last four years, this program has been a huge success — helping employers pay off thousands of employees’ loans and compete for the best talent. This public-private collaboration has proven itself as a cost-effective solution to the student debt crisis and it is imperative that we make it permanent.”  

“Over the past 20 years, the cost to attend college has risen 45 percent, forcing students to choose between pursuing higher education and taking on tens of thousands of dollars in burdensome student loan debt,” Rep. Malliotakis said. “Our bipartisan legislation will allow millions of students and recent graduates to continue receiving reimbursement through their employer up to $5,250 per year tax-free, which can be used to repay student loans, pay tuition, and purchase required books, supplies, and equipment for academic courses. This tax incentive will continue to strengthen our workforce, increase our nation’s competitiveness, and provide much-needed economic relief to millions of Americans who are struggling to make ends meet during this time of record-high inflation.” 

Reports estimate that Americans owe a combined $1.74 trillion dollars in student loan debt. This debt is a significant financial burden that not only influences the way the American workforce saves and spends, but also has a stifling effect on the economy. This legislation would update an existing federal program so that it works better for employees living with the reality of burdensome student loan debt.

The legislation has support from numerous educational organizations.

“The American Council on Education strongly supports the ‘Employer Participation in Repayment Act,’ which would make permanent the CARES Act expansion of Sec. 127 to cover student loan repayment assistance. Many Americans are paying off student loans while balancing the needs of their families and achieving new skills to advance in their careers. This legislation would provide employers the opportunity to support their employees in pursuing education and/or to manage their student loan debt, which represents a win-win for employers and employees. This expansion of Sec. 127 potentially also could generate substantial private sector funds for student loan repayment through a new public-private partnership to help ease the burden of future and current student loan debt on students and recent graduates. Thank you for your leadership on this important issue,”said the American Council on Education (ACE).

“AICCU is proud to endorse the Employer Participation in Repayment Act, introduced by Congressmembers Nicole Malliotakis and Scott Peters. The independent higher education sector in California enrolls 54% of California graduate students, making the sector the leader in educating the state’s advanced workforce. This bill would make permanent the expansion of Section 127 and will encourage employees to complete their degrees or aspire to upskill and attain a certificate or advanced degree and reinvest them back in with their employer. This is a win-win-win situation for all—the employer, staff, and the postsecondary institution. Thank you, Congressmembers Peters and Malliotakis, for your joint leadership on this critical issue,” said Kristen Soares, President of AICCU.

“Employers and workers alike have benefited from the COVID-era laws allowing Section 127 benefits to be provided to employees for the purpose of repaying student loans. Unfortunately, when the bills were signed into law, Congress included an expiration date for the end of 2025, meaning employees could soon be stripped of a benefit that has eased the financial burden of repaying costly loans during a time of high inflation, and employers could lose a benefit they have offered to attract and retain employees. CUPA-HR therefore fully supports this bill to ensure modern Section 127 benefits are made permanent,” said Andy Brantley, President and Chief Executive Officer at the College and University Professional Association for Human Resources (CUPA-HR).

“The Consortium of Hospital-Affiliated Colleges and Universities (CHACU) endorses this important legislation to make the student loan repayment expansion permanent.  It provides confidence to students entering critically in-demand healthcare careers such nursing, as well as the hospitals seeking to attract and retain them.  Thank you for this legislation which will strongly support nursing and allied health education,” said Nate Brandstater, President of Kettering College and CHACU Member.

“Fidelity Investments commends the bipartisan introduction of the Employer Participation in Repayment Act. As a market leader for student debt workplace benefits since 2016, Fidelity applauds the proposal to create a permanent path for employers to seamlessly contribute to and ease the student debt burden of their employees. Originally enacted as part of the CARES Act, this bill ensures an impactful public-private solution to the country’s growing student debt crisis that can continue to enhance the financial well-being of hard-working Americans and bolster the recruiting and retention strength of companies seeking to offer this benefit. We look forward to working with Congress to enact this legislation into law,” said Jesse Moore, Senior Vice President, Head of Student Debt at Fidelity Investments.

“The National Association of Independent Colleges and Universities (NAICU) is pleased to support bipartisan legislation that would make permanent the expansion of IRC Sec. 127. This expansion to allow student loan repayment assistance should absolutely be a permanent benefit and not expire next year as currently scheduled.  This assistance helps working students, employers, and ultimately the U.S. economy. Section 127 benefits play a critical role in maintaining U.S. competitiveness and preventing the accumulation of student debt by enabling employers to fund the training, development and education of their employees, without imposing tax burdens on those employees for the education they receive.  Employees use these benefits to pursue their educational and career goals and use amounts provided by their employer to either help pay for the cost of tuition or repay student loans,” said Karin Johns, Director of Tax Policy at the National Association of Independent Colleges and Universities.

“The National Association of REALTORS® (NAR) has long supported efforts to ease the burden of student loan debt. The Employer Participation in Repayment Act is a useful tool in easing the weight of student debt. NAR applauds the leadership from Representatives Peters and Malliotakis and Senators Warner and Thune in making this change permanent. This legislation creates a win-win for both employers in search of attracting and maintaining talented workers and employees who will receive relief on their debt, enabling them to save money for important life decisions like purchasing a home,” said Kevin Sears, President of the National Association of Realtors®.

“We are proud to continue to support this initiative and thank Congressmember Peters for his commitment to San Diego’s small businesses,” said Jerry Sanders, President and CEO of the San Diego Regional Chamber of Commerce. “By expanding the benefits employers can offer employees through student debt repayment, the Employer Participation in Repayment Act of 2024 is helping strengthen efforts to attract and retain workers, especially for small business owners.”

“SHRM is proud to support the Employer Participation in Repayment Act, a bipartisan bill that would permanently allow employers to help employees pay off their student loans. SHRM has long championed policies that allow employers to offer education assistance programs that meet the needs of today’s workforce. This legislation would benefit millions of Americans who are struggling with student loan debt, while simultaneously providing employers with a strategic advantage in attracting and retaining top talent in a competitive job market,” said Emily M. Dickens, Chief of Staff and Head of Government Affairs at SHRM.

“Extending the tax exclusion for employer-provided student loan repayment assistance is crucial for today’s U.S. workforce and is 100% aligned with employer perspectives on these benefits,” says Scott Thompson, CEO of Tuition.io.  “As the cost of higher education continues to skyrocket, this benefit enables companies to foster a more educated and skilled workforce, while helping their employees cover basic living expenses, a challenge for so many people today. Since Tuition.io started administering contributions in 2016, employers on our platform have helped pay down student loan debt for hundreds of thousands of employees in key sectors like healthcare, manufacturing, and technology. We at Tuition.io strongly support making these benefits under Section 127 permanent, as their removal would be a significant setback for both corporations and their employees,” said Scott Thompson, CEO of Tuition.io.

"The enormity of this bipartisan initiative cannot be understated. Extending educational assistance benefits to permanently include tax-free student loan repayments will be transformational both for those holding student debt and for employers. As the workforce continues to place an increasing emphasis on financial stability, tax-free employer contributions will be the center of focus for many employers going forward. Highway Benefits has been proud to be able to help companies of all sizes offer this benefit. We look forward to continuing to work with congress in order to make sure that tax-free student loan repayments are here to stay," said Mick MacLaverty, CEO of Highway Benefits. 

Full text of the legislation can be found here. A summary of the legislation can be found here.

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WASHINGTON – Ahead of Israeli Prime Minister Benjamin Netanyahu’s joint meeting of Congress, U.S. Sens. Mark R. Warner (D-VA), Ben Cardin (D-MD), and Jack Reed (D-RI), the Chairs of the Senate Select Committee on Intelligence, Senate Foreign Relations Committee, and Senate Armed Services Committee, wrote to President Biden to support a deal that ends the Gaza conflict, secures the return of all hostages, and ensures Israel’s long-term security through meaningful and tangible steps towards a two-state outcome for Israelis and Palestinians living side by side in equal measures of security, dignity, prosperity, and peace. The Chairs reiterated their commitment to Israel’s greater integration into the region, including through normalizing relations with Saudi Arabia, as part of a comprehensive plan for peace. They underscored that only a holistic approach could break the cycle of violence and counter terrorism, and erode the narrative of the Iranian regime, Hamas, and others who seek to sow chaos and despair in the Middle East. Finally, the Chairs reaffirmed the need for regional partners, with the support of allies, to be committed to and invested in such a future where security for both Israelis and Palestinians is ensured.

“We write to express our strong support for the agreement that immediately would release the hostages, and end the conflict in Gaza,” wrote the Chairs. “We commend your focus on moving towards a sustainable and negotiated two-state outcome that ensures Israel’s long-term security as a Jewish and democratic state, living alongside a Palestinian state with equal measures of peace, dignity, and prosperity.”

Full text of the letter is available below:

Dear President Biden:

As the Chairs of the national security committees of the Senate, and in anticipation of Prime Minister Netanyahu’s joint address to Congress, we write to express our strong support for the agreement that immediately would release the hostages, and end the conflict in Gaza. We commend your focus on moving towards a sustainable and negotiated two-state outcome that ensures Israel’s long-term security as a Jewish and democratic state, living alongside a Palestinian state with equal measures of peace, dignity, and prosperity. Such an outcome would be anchored in a historic normalization agreement between Israel and Saudi Arabia and Israel’s greater regional integration. We applaud this strategic vision that seeks to counter terrorism and destabilization in the Middle East, and build a more hopeful future. Breaking the cycle of violence can only happen through a holistic approach to the Israeli-Palestinian conflict, including meaningful and tangible steps to create a viable path to a two-state outcome for both Israelis and Palestinians.

This strategy begins with an agreement to return all hostages held by Hamas and the establishment of a ceasefire in Gaza. The human cost of the October 7 attacks and the months after has been devastating for both Israelis and innocent Palestinians. While Hamas’ military capabilities have been degraded notably, lasting security rests in denying Hamas what it needs to once again govern and control Gaza. A post conflict strategy for Gaza must be comprehensive and done in cooperation with Arab and international partners to address thoroughly pressing humanitarian needs, security challenges, and governance vacuums.

Critically, to ensure lasting security for Israel and greater regional integration, the approach must include meaningful and tangible steps for a future two-state outcome. As you noted in July 2022, this includes “…two states for two peoples, both of whom have deep and ancient roots in this land, living side by side in peace and security. Both states fully respecting the equal rights of the other citizens. Both peoples enjoying equal measures of freedom and dignity.”

Israel, a reformed Palestinian Authority, and regional partners must be prepared to move the West Bank and Gaza towards a future where two peoples live without fear, and with equal measures of security, dignity, and prosperity. In Gaza, this requires a robust humanitarian, security, and governance plan with commitment and investment from the region. In the West Bank, these steps must include a reformed, capable, and accountable Palestinian Authority that can assume responsibility and security for all Palestinians and is ready and willing to fight terrorism in all its forms.

For Israel, this must include reversing the growing trend towards annexing parts of the West Bank. There are some in Israel, including members of the current government, that do not see peace, safety, and dignity for Palestinians as integral to Israel’s security, and who undermine the future of a two-state outcome. That is why any approach must also build on your Administration’s steps to lay bare the violence that targets innocent Palestinians in the West Bank, and to hold accountable those violent extremists who destroy or expropriate Palestinian land and infrastructure. We urge you to stress to Prime Minister Netanyahu the United States’ significant concerns over these trends in the West Bank. We need to make clear that such violent acts do not make Israel or Israelis safer, and that the United States will continue to address these acts, including through sanctions.

Finally, a strategy to achieve all of these objectives requires Israel’s regional integration, including normalized relations with Saudi Arabia, which in turn offers a path to broader regional security and stability with neighbors who are at peace with one another. This will require regional leaders to make difficult choices, but the alternatives are dark, dangerous, and destabilizing. The Iranian regime, through its network of proxies, destabilizes the region, harms international trade, and poses a direct threat to regional security. Failure to deepen regional integration will not only allow narratives by the Iranian regime, Hamas, and others to prevail but also enable it to dictate the pace of events in the Middle East. Broader regional integration must deal with the threat of terrorism head on. But it also must offer the prospect of hope – the hope of a political horizon towards comprehensive peace.

Regional leaders understand these threats and the potential benefits. We saw a demonstration of the threat on April 13 and 14, when Israel, along with its neighbors were the target of Iran’s attack. Regional leaders know they must step up to ensure the region – including Israel – can live in peace and security.

We are under no illusion that this will be easy and we fully understand that diplomacy requires compromise. But the pre-October 7 status quo is not sustainable. In order for the region to chart a new path forward, one that chooses cooperation and partnership over endless conflict, hope must follow the darkness of October 7 and recent months.

We see an opportunity for enduring peace and security for Israel and greater economic and security integration in the Middle East. Our interests and Israel’s interests stand to be enhanced. The potential benefits are manifold, from checking Iran and its proxy militias to supporting greater regional economic, development, and security integration, and preserving our interests against geopolitical competitors in the Middle East. As you said on May 31, “We can’t lose this moment.” We therefore urge you to seize the opportunity and stand resolute in your commitment to a path that can lead to more enduring stability, prosperity, and security for the United States, Israel, and the entire Middle East.

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WASHINGTON – U.S. Sens. Mark R. Warner (D-VA) and Thom Tillis (R-NC) today introduced legislation to provide much-needed tax relief to working artists. The Performing Artist Tax Parity Act of 2024 would update the Qualified Performing Artist (QPA tax deduction), which allows certain performing artists to deduct the cost of expenses incurred in the course of their employment.

The Qualified Performing Artist tax deduction has not been updated since its inception in 1986 and is currently only available to those making less than $16,000 a year, meaning that very few artists qualify. This legislation would update and increase the income ceiling to $100,000 for individuals and $200,000 for married joint filers, allowing more lower- and middle-income performing artists to receive tax relief for work-related expenses.

“The Commonwealth of Virginia has a rich culture fueled by small local artists who often use their own funds to subsidize their work,” Sen. Warner said. “I am proud to introduce legislation that updates an outdated tax deduction in order to help more artists cover costs of work-related expenses.”

“I am honored to introduce this legislation in support of North Carolina’s vibrant artistic community,” Sen. Tillis said. “This bill eliminates an unnecessary burden in our tax code, simplifying the path for artists to pursue their creative endeavors.”

Sen. Warner first introduced this legislation in 2021 amid recovery efforts from the COVID-19 pandemic that hit artists especially hard. The Performing Artist Tax Parity Act is endorsed by numerous organizations advocating for the rights of emerging artists, including the Department for Professional Employees, AFL-CIO, the Actors’ Equity Association, the Theatre Communications Group, and the Recording Academy/GRAMMYs. Companion legislation has been introduced in the House of Representatives by Reps. Judy Chu (D-CA) and Vern Buchanan (R-FL).  

“The film, television, and streaming industry supports more than 2.74 million jobs nationwide. The Performing Artist Tax Parity Act (PATPA) rightly supports these workers by allowing them to deduct necessary work expenses when filing their taxes. The MPA again joins others in the creative community to proudly endorse the bipartisan PATPA,” said Charles Rivkin, Chairman and CEO, Motion Picture Association.

“The Performing Artist Tax Parity Act (PATPA) is a needed bill that affords hardworking artists tax fairness so they can continue producing art despite the ever-increasing cost of living and supplies,” said Nina Ozlu Tunceli, Executive Director of the Americans for the Arts Action Fund.

“I want to thank Sens. Mark Warner and Thom Tillis for re-introducing this important legislation. They are great champions of the creative professionals that keep our industry successful,” said Fran Drescher, SAG-AFTRA president. “People don't realize how much performers must invest in themselves to be eligible before they secure a paying job. But our Congressional members must know that in order to protect the journeyman performer’s legitimate business deductions. We have been fighting for this legislation because it will allow working class entertainment and media professionals to cope with the escalating increase of their business expenses.”

“The Performing Artist Tax Parity Act (PATPA) is a top priority for DPE and its affiliate unions in the arts, entertainment, and media industries. PATPA will restore tax fairness for middle-class, union creative professionals who have faced steep tax bills since losing the ability to deduct business expenses associated with pursuing their careers. I commend Senators Warner and Tillis for reintroducing PATPA in the Senate,” said Jennifer Dorning, President, Department for Professional Employees, AFL-CIO (DPE).

“The Writers Guild of America East supports the immediate passage of the Performing Artist Tax Parity Act. This much-needed bipartisan legislation will reinstate workers’ ability to deduct common work expense,” said Lisa Takeuchi Cullen, President of the Writers Guild of America East.

“RIAA applauds Senators Warner and Tillis’ leadership addressing the unique challenges artists and musicians face under the tax code. We strongly support their effort to establish a more equitable performers’ deduction through their Performing Artist Tax Parity Act (PATPA). A healthy creative ecosystem – including fair tax rules – lays the groundwork for more jobs in music and for future stars to break through,” said Mitch Glazier, Recording Industry Association of America (RIAA) Chairman & CEO.

“Theatre artists accumulate many unique expenses in order to keep creating necessary dialogue, reflection, and art on our nation’s stages,” said Erica Lauren Ortiz, Director of Advocacy & Governance, Theatre Communications Group. “They often create art at personal financial sacrifice, and their investments bring together audiences and stimulate the economy in cities and towns across America. Theatre Communications Group is proud to support the Performing Arts Parity Tax Act, a tax correction that which will place money back into the hands of these working artists, when our field so urgently needs support.”

“I commend Senators Warner and Tillis for championing this commonsense, bipartisan legislation that will help thousands of middle class behind-the-scenes entertainment workers keep more of their hard-earned money in their pockets,” said IATSE International President Matthew D. Loeb. “The largely freelance nature of the arts and entertainment industry requires IATSE members to spend on necessary expenses to secure and maintain employment. The Senators recognize that entertainment workers deserve tax fairness and should be able to deduct the cost of the equipment, tools, and travel necessary to do their jobs.”

“From stage managers to actors, musicians and stagehands, the overwhelming majority of arts professionals are hardworking Americans who have been paying hundreds and sometimes thousands of dollars more in taxes because of an inadvertent oversight when Congress last passed tax reform,” said Brooke Shields, president of Actors’ Equity Association. “Senators Warner and Tillis have introduced a simple bipartisan fix that will level the playing field for arts workers, many of whom spend thousands of dollars out of pocket on business expenses. We’re grateful for the leadership of Senators Warner and Tillis for reintroducing this critical legislation that has the support of workers and employers in the arts community.”

A copy of the bill text can be found here. 

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WASHINGTON –  Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) announced $17.5 million in federal funding for restoration and resiliency projects that benefit coastal communities and tribes across the Commonwealth. The funding was awarded through the National Oceanic and Atmospheric Administration’s (NOAA) Transformational Habitat Restoration and Coastal Resilience grant program and made possible by the bipartisan infrastructure law and Inflation Reduction Act, which Sens. Warner and Kaine helped pass.

“We are fortunate to have such bountiful natural resources in Virginia, which is why we have championed efforts to protect and support Virginia’s great outdoors,” the Senators said. “This funding will help us continue combating climate change and preserve our beautiful Commonwealth.”

This funding is broken down as follows:

• Ducks Unlimited will receive $9.5 million in funding to restore Swan Cove, the southernmost impoundment at Chincoteague National Wildlife Refuge on Assateague Island.
• The Virginia Department of Wildlife Resources will receive $8 million in funding to protect eroding marshes at Ragged Island Wildlife Management Area in Isle of Wight County.

NOAA Fisheries’ announcement comes as a part of $286 million soon to be deployed across the nation to support critical ecosystems that will be affected by climate change and extreme weather over the coming decades. Sens. Warner and Kaine are strong advocates for Virginia’s environment. In May, they announced another $14 million in funding for conservation projects across the Commonwealth.

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) wrote to Department of Health and Human Services (HHS) Secretary Xavier Becerra and Deputy National Security Advisor Anne Neuberger to quickly develop and release mandatory minimum cyber standards for the health care sector. This letter comes as cyberattackers continue to exploit vulnerabilities in many current systems.

“I write today to urge you to prioritize the development of mandatory minimum cyber standards and to propose them as soon as possible, given the increasing severity, frequency, and sophistication of cybersecurity threats and attacks. Health care is one of the largest sectors in the U.S. economy, with health expenditures accounting for 17 percent of the United States’ gross domestic product in 2022, and expected to grow to nearly 20 percent by 2032. More important than the economic risks cyberattacks pose to the health care sector are the vulnerabilities to patients’ access to care and private health information. Simply put, inadequate cybersecurity practices put people’s lives at risk,” Sen. Warner wrote. 

This letter comes months after a major cybersecurity incident at Change Healthcare affected billing and care authorization portals and led to prescription backlogs and missed revenue for providers. This attack, and other similar attempts, pose a serious risk not only to regular business operations, but also to patient care. In his letter, Sen. Warner highlighted that without basic security measures, these attacks are relatively easy to carry out and will happen with more frequency.  

Sen. Warner continued, “Due to some entities failing to implement basic cybersecurity best practices, such as the lack of multi-factor authentication resulting in the successful attack on Change Healthcare, the capability required of a threat actor to carry out an operation in the sector can be quite low.”

Sen. Warner has been a leader in the cybersecurity realm throughout his time in the Senate, crafting numerous pieces of legislation aimed at addressing these threats facing our nation. Recognizing that cybersecurity is an increasingly complex issue that affects the health, economic prosperity, national security, and democratic institutions of the United States, Sen. Warner cofounded the bipartisan Senate Cybersecurity Caucus in 2016.  A year later, in 2017, he authored the Internet of Things (IoT) Cybersecurity Improvement Act. This legislation, signed into law by President Donald Trump in December 2020, requires that any IoT device purchased with federal funds meet minimum security standards. As Chairman of the Senate Select Committee on Intelligence, Sen. Warner co-authored legislation that requires companies responsible for U.S. critical infrastructure report cybersecurity incidents to the government. This legislation was signed into law by President Joe Biden as part of the Consolidated Appropriations Act in March 2022.

Sen. Warner has also examined cybersecurity in the health care sector specifically. In 2022, Sen. Warner authored “Cybersecurity is Patient Safety,” a policy options paper, outlining current cybersecurity threats facing health care providers and systems and offering for discussion a series of policy solutions to improve cybersecurity across the industry.  Since publishing, Sen. Warner has launched the Health Care Cybersecurity Working Group with a bipartisan group of colleagues to examine and propose potential legislative solutions to strengthen cybersecurity in the health care and public health sector.

A copy of the letter can be found here are below. 

Dear Secretary Becerra and Ms. Neuberger:

Thank you for your continued commitment to improving cybersecurity in America’s health care system. I write today to urge you to prioritize the development of mandatory minimum cyber standards and to propose them as soon as possible, given the increasing severity, frequency, and sophistication of cybersecurity threats and attacks. Health care is one of the largest sectors in the U.S. economy, with health expenditures accounting for 17 percent of the United States’ gross domestic product in 2022, and expected to grow to nearly 20 percent by 2032. More important than the economic risks cyberattacks pose to the health care sector are the vulnerabilities to patients’ access to care and private health information. Simply put, inadequate cybersecurity practices put people’s lives at risk.

Financially-motivated threat actors realize that the sector has both highly valuable data in its possession and also faces tremendous pressure to respond quickly to a ransomware demand. Health records are more valuable than credit card records on the dark market and disruptions to operations of health care providers have direct impact on the life and well-being of their patients. Due to some entities failing to implement basic cybersecurity best practices, such as the lack of multi-factor authentication resulting in the successful attack on Change Healthcare, the capability required of a threat actor to carry out an operation in the sector can be quite low.

Further, both the size and increasingly interconnected nature of the sector create a vulnerable attack surface. Not only do attacks against the sector often result in the loss of highly personal and sensitive data, those attacks have also affected the ability of providers to maintain the availability and quality of their care. We have seen devastating incidents, including the recent cyberattack on Change Healthcare, that ultimately took down the ability of providers to pay their workers and prevented pharmacists from looking up patient insurance and co-pay information. The recent cyberattack on the nationwide provider, Ascension, has also resulted in delays in care. And we have a growing body of evidence that clearly demonstrates that cybersecurity is, above all else, a patient safety issue.

The health care sector must be fully engaged in developing, implementing, and maintaining a coherent and effective cybersecurity regime; accepting cyberattacks due to lack of preparedness cannot and should not be a cost of doing business. The stakes are too high, and the voluntary nature of the status quo is not working, especially regarding health care stakeholders that are systemically important nationally or regionally. Mandatory minimum cyber standards would ensure that all health care stakeholders prioritize cybersecurity in their work. 

Policymakers, cybersecurity professionals, and patients alike have long been raising the alarm that the voluntary nature of cybersecurity in health care is insufficient and dangerous. It’s critical that the Administration expeditiously act to create mandatory, enforceable policies in the health care sector.

Sincerely,

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