WASHINGTON, D.C. – U.S. Senators Mark Warner (D-VA) and Tim Kaine (D-VA) joined Senator Patty Murray (D-WA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and 41 of their Democratic colleagues in a letter to Secretary DeVos condemning her reported plans to allow states and school districts to use federal funds to purchase firearms and firearm trainings for teachers and other school staff. The grants Secretary DeVos is considering using were created in the bipartisan Every Student Succeeds Act (ESSA), and are intended to keep students safe and healthy, provide a well-rounded education, and help school districts more effectively use education technology.

“This plan runs counter to the bipartisan Every Student Succeeds Act and will make our schools more dangerous, and our students less safe,” wrote the Senators. “We urge you to abandon this proposal immediately, deny state and school district requests to use federal funds for this purpose, and instead work with us and other stakeholders to focus on other efforts that enhance student safety and prevent violence.” 

If Secretary DeVos goes through with this plan, the New York Times reports this would be the first time a federal agency authorized the purchase of weapons without a Congressional mandate. Just a few months ago, Congress once again reiterated this position by preventing federal funds from being used to purchase firearms or firearms training in the bipartisan Stop School Violence Prevention and Mental Health Training program. 

“Students across the country deserve to learn in an environment that is safe and free of weapons. Introducing more guns into schools and classrooms is likely to lead to more, not less, violence. Reports of an unintentional firing in a classroom and even a gun being left in an elementary school bathroom illustrate the very real dangers to our children of arming teachers and other school staff,” continued the Senators. 

In addition to Warner, Kaine, and Murray, the letter was signed by Senators Feinstein (D-CA), Nelson (D-FL), Schumer (D-NY), Murphy (D-CT), Blumenthal (D-CT), Durbin (D-IL), Markey (D-MA), Baldwin (D-WI), Bennet (D-CO), Booker (D-NJ), Brown (D-OH), Cardin (D-MD), Carper (D-DE), Casey (D-PA), Coons (D-DE), Cortez Masto (D-NV), Duckworth (D-IL), Gillibrand (D-NY), Harris (D-CA), Hassan (D-NH), Heinrich (D-NM), Hirono (D-HI), Jones (D-AL), King (I-ME), Klobuchar (D-MN), Leahy (D-VT), McCaskill (D-MO), Menendez (D-NJ), Merkley (D-OR), Peters (D-MI), Reed (D-RI), Sanders (I-VT), Schatz (D-HI), Shaheen (D-NH), Smith (D-MN), Stabenow (D-MI), Udall (D-NM), Van Hollen (D-MD), Warren (D-MA), Whitehouse (D-RI), and Wyden (D-OR).

Full text of the letter is below and PDF is HERE.

The Honorable Betsy DeVos

Secretary of Education

U.S. Department of Education

400 Maryland Avenue, S.W.

Washington, D.C. 20202

Dear Secretary DeVos: 

We write to express our strong opposition to the Department’s reported plans to allow States and school districts to purchase firearms or firearms training for teachers and other school staff with federal Elementary and Secondary Education Act (ESEA) funds.^[1] This plan runs counter to the bipartisan Every Student Succeeds Act (ESSA) and will make our schools more dangerous, and our students less safe. We urge you to abandon this proposal immediately, deny state and school district requests to use federal funds for this purpose, and instead work with us and other stakeholders to focus on other efforts that enhance student safety and prevent violence.

The Student Support and Academic Enrichment Grant program, authorized under Title IV-A of ESSA in 2015, provides funds to States and school districts for a range of activities intended to keep students safe and healthy, provide a well-rounded education, and help school districts more effectively use education technology. Congress never intended for these funds to be used to purchase weapons, or train teachers in how to use weapons in schools. In fact, Congress denounced the presence of firearms in schools in ESEA section 4102(5)(B), when it defined the term “drug and violence prevention” as a program that fosters “the creation and maintenance of a school environment free of weapons.”^[2]

Within the realm of education, it is the Federal government’s longstanding position to prohibit federal funds from being used to purchase weapons. Just a few months ago, Congress reiterated that position with the bipartisan Stop School Violence Prevention and Mental Health Training program, which ensures “No amounts provided as a grant under this part may be used for the provision to any person of a firearm or training in the use of a firearm.”^[3]  According to the New York Times, your Department acknowledges that moving forward with this plan would be the first time a federal agency has authorized the purchase of weapons without Congressional mandate.^[4] Establishing such a precedent would be dangerous and clearly against Congressional intent.

Educators already face the daunting task of educating our next generation. Teachers and other school staff should be focused on providing instruction, engaging families, and providing students with the skills and supports they need to succeed in the workforce and in life, not on managing and potentially responding to threats with deadly force. In fact, a recent poll showed that the overwhelming majority of educators do not want to be armed, and instead many believe social emotional learning, mental health supports, and increased wraparound services and funding are a more effective way to keep students safe.^[5]

Students across the country deserve to learn in an environment that is safe and free of weapons. Introducing more guns into schools and classrooms is likely to lead to more, not less, violence. Reports of an unintentional firing in a classroom^[6] and even a gun being left in an elementary school bathroom^[7] illustrate the very real dangers to our children of arming teachers and other school staff.

Title IV-A provides the opportunity for states and school districts to tailor their programming to local needs and improve school safety and student learning. The Administration’s proposal to allow States and school districts to use federal ESEA funds to arm teachers and other school staff not only runs counter to Congressional intent and established federal precedent, but would take schools and communities backwards in pursuit of these goals. We urge you to disallow any State or local educational agency from using ESEA funds for these purchases and to work with Congress to ensure our students are healthy, safe, and well-supported.

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^[1] https://www.nytimes.com/2018/08/23/us/politics/devos-guns-in-schools.html

^[2] Elementary and Secondary Education Act, section 4102(5)(B) 

^[3] H.R.1625 - Consolidated Appropriations Act, 2018

^[4] https://www.nytimes.com/2018/08/23/us/politics/devos-guns-in-schools.html

^[5] https://teachplus.org/news-events/press-release/teachers-overwhelmingly-oppose-idea-arming-teachers-schools-new-national

^[6] https://www.washingtonpost.com/news/morning-mix/wp/2018/03/14/teacher-accidentally-discharges-firearm-in-calif-classroom-he-was-trained-in-gun-use/

^[7] https://www.cbsnews.com/news/cops-teacher-left-gun-in-bathroom-elementary-kids-found-it/

WASHINGTON— U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) announced that nine Virginia airports will receive a total of $10,669,159 in federal funding from the Department of Transportation (DOT).

“We are pleased to announce these funds that will allow Virginia airports to make the necessary improvements to ensure safer travel to and from the Commonwealth,” the Senators said. “This federal funding will not only help to revitalize our airports, but will also help boost tourism across Virginia.”

Airports and project amounts are listed below:

• Norfolk International Airport—$5,974,019. These funds will go towards rehabilitating Concourse A and to help construct a 5,000 square foot general aviation customs inspection facility.
• Tappahannock-Essex Airport—$274,050. These funds will go towards an environmental study to evaluate any potential environmental impacts related to the proposed extension of the parallel taxiway and a non-aeronautical development area identified on the airport's layout plan.
• New Kent County Airport—$991,901. These funds will help to rehabilitate 24,000 square yards of the existing terminal apron pavement.
• Washington Dulles International Airport—$492,188. These funds will go towards acquiring 75 Automatic Dependent Surveillance Broadcast (ADS-B) squitter units for airport ground vehicles to improve surface situational awareness and safety. ADS–B is a surveillance technology in which an aircraft determines its position via satellite navigation and periodically broadcasts it, enabling it to be tracked.
• Ronald Reagan Washington National Airport— $492,188. These funds will go towards acquiring 75 Automatic Dependent Surveillance Broadcast (ADS-B) squitter units for airport ground vehicles to improve surface situational awareness and safety. ADS–B is a surveillance technology in which an aircraft determines its position via satellite navigation and periodically broadcasts it, enabling it to be tracked.
• Louisa County/Freeman Field Airport—$346,500. These funds will help the construction of perimeter fences to deter unauthorized persons and vehicles from entering onto the airfield, thereby increasing airport safety.
• Ingalls Field Airport (Bath County, VA)—$81,000. These funds will help to construct a 360 square foot hangar building to assist the airport in being revenue-generating and in turn self-sustaining. Funds will also go towards construction of a similarly sized snow removal equipment building that will help extend the life of the equipment by protecting it from adverse weather conditions.
• Luray Caverns Airport—$184,230. These funds will go towards the construction of a 12,500 square yard terminal apron to provide aircraft parking.
• Roanoke-Blacksburg Regional/Woodrum Field Airport—$1,833,083. These funds will go towards the implementation of additional security enhancements.

The funding was awarded through the FAA’s Airport Improvement Program within DOT. The program supports infrastructure improvement projects at airports across the country, including runways, taxiways, aprons, terminals, aircraft rescue and firefighting vehicles, and snow removal equipment. Sens. Warner and Kaine have long fought for funding for Virginia’s airports and pushed back against the Trump Administration’s suggested budget cuts to DOT to ensure that critical upgrades like these can happen. The Senate is expected to consider a long-term FAA reauthorization measure in the coming weeks.

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WASHINGTON, D.C. – U.S. Senators Mark Warner and Tim Kaine announced $150,000 in federal funding to help transform the 8,667 square foot space in the old Prices Fork Elementary School in Montgomery County into a local food enterprise center. The transformed space will include a commercial incubator kitchen, farm-to-table restaurant, a local craft brewery, a retail consignment market, and business incubation and support services.

“This revitalization is the result of a real partnership between local businesses and the community to invest in Prices Fork. We’re proud to support the project with federal funding that will help contribute to the food center’s success,” the Senators said.

This grant was awarded through the United States Department of Agriculture’s Rural Business Development Grants Program.

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WASHINGTON, D.C. – U.S. Senators Mark R. Warner and Tim Kaine released the following statement after the U.S. Senate unanimously confirmed G. Zachary Terwilliger to fill the vacancy of U.S. Attorney for the Eastern District of Virginia: 

“We are pleased that our colleagues agreed Zachary Terwilliger is well-qualified to serve as the next U.S. Attorney for the Eastern District of Virginia,” the Senators said. “Mr. Terwilliger has ample experience in the Eastern District, and we’re glad he will be able to continue his good work in Virginia.”

Terwilliger previously served in the U.S. Department of Justice as Associate Deputy Attorney General and Chief of Staff in the Office of the Deputy Attorney General. 

Warner and Kaine recommended Terwilliger to the White House for nomination to the position after a panel of attorneys from across the Commonwealth—selected by Warner and Kaine—evaluated candidates and determined Terwilliger was highly qualified for the position. The Eastern District of Virginia has offices in Alexandria, Richmond, Newport News, and Norfolk.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) issued the below statement on the passing of U.S. Sen John McCain (R-AZ):

"We lost a hero tonight.  John McCain served this country with honor, purpose and courage for his entire life, regardless of the personal cost. He was a giant of the Senate. His service, sacrifice and patriotism should be an inspiration to every American. 

"My heart goes out to Cindy and the entire McCain family. The prayers of a grateful nation are with them during this difficult time."

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WASHINGTON, D.C.—Today, U.S. Senators Mark Warner and Tim Kaine celebrated Senate passage of a bill to fund health care, defense, education, and worker protection priorities that are critical to Virginia. The Senate appropriations bill to fund the Departments of Defense, Health and Human Services, Education, and Labor for Fiscal Year 2019, which begins on October 1, will now go to conference with the House of Representatives before heading to the President for signature. Warner and Kaine pushed for many of these priorities through the appropriations process and have long pressed the Senate to return to regular budget order to make sure there are no gaps in funding that could cause a government shutdown.

“This legislation makes important investments in our national security and in Virginia’s economy — from a well-deserved raise for our troops and important funding for shipbuilding in Hampton Roads, to new resources to fight opioids and combat Alzheimer’s disease. I’m pleased to report that this legislation includes several amendments I sponsored, including legislation that will improve black lung early detection and treatment efforts for Virginia’s coal miners. In addition, the legislation includes my cyber scholarship amendment that makes $7 million in funds available to secure a talented and diverse workforce in the field of cybersecurity,” said Warner. “While I voted in favor of this legislation, I’m beyond frustrated that my bipartisan amendment to limit the President’s ability to revoke the security clearances of his critics didn’t even get a vote. Congress should not sit by as the President abuses this vital national security tool to get revenge on his critics.”  

Health Care:

• Funds childhood disease research: The bill provides $12.6 million for the Gabriella Miller Kids First Pediatric Research Program to conduct pediatric cancer and disease research. Warner and Kaine worked to enact the legislation authorizing this program, named for 10-year-old Gabriella Miller of Loudoun County, who passed away from cancer in October of 2013.
• Early detection of black lung disease: The bill also includes a provision Warner and Kaine advanced to improve the participation rate of coal miners in federal health surveillance programs that detect and treat black lung. Warner and Kaine have been strong advocates for coal miners and their families, supporting legislation that ensures they retain the health and retirement benefits they deserve.
• Protects the ACA, Medicare, and Medicaid: The Senators ensured that the bill did not include proposed language that would have restricted HHS’s authority to administer or enforce the ACA.  The bill keeps funding and program authorities consistent with 2018, thereby protecting Centers for Medicare and Medicaid Services’ ability to administer Medicare, Medicaid, and the ACA. 
• Provides $5.7 billion to combat substance abuse:  The bill provides $5.7 billion for the Substance Abuse and Mental Health Services Administration (SAMHSA), which is $579 million more than Fiscal Year 2018. This includes $1.5 billion for State Opioid Response Grants, an increase of $50 million for Certified Community Behavioral Health Clinics and $25 million for mental health block grants, and $105 million for the National Health Service Corps. It also expands loan repayment eligibility requirements to include substance use disorder counselors, which will support recruitment and retention of health professionals needed in underserved and rural areas.
• Increases funding for Alzheimer’s and brain research: The bill provides $39.1 billion for the National Institutes of Health (NIH), an increase of $2 billion from last year’s level and $4.5 billion above the President’s suggested budget. The increase includes an additional $425 million for Alzheimer’s research for a total of $2.34 billion and an increase of $29 million for the BRAIN Initiative. 

Defense:

• Funds a 2.6 percent pay raise for servicemembers: Funds the pay raise that was authorized in the annual defense bill Kaine worked on with his colleagues on the Senate Armed Services Committee. Warner and Kaine strongly supported the pay increase.
• Supports Virginia’s shipbuilding industry: Provides over $23.9 billion in Shipbuilding Accounts, with more than $12 billion going towards programs that will benefit Virginia like the Columbia & Virginia Class Submarines, Ford Class Carrier construction, and Nimitz Class overhaul. It also supports the Navy's goal of attaining a 355-ship fleet, which Warner and Kaine have both strongly endorsed.
• Offers budget certainty to our troops and military leaders: This legislation appropriates a full year of funds for the Department of Defense, addressing Warner and Kaine’s concerns, shared by military leaders, that Congress’ failure to return to regular budget order has interfered with DoD’s ability to plan ahead and that continuing resolutions have been painful to the country’s national security initiatives.
• Addresses lead poisoning in military housing: Following reports of lead poisoning in military housing units, the legislation requires the Government Accountability Office in consultation with the Department of Defense to provide reports to Congress on the monitoring and remediation of lead and verifiable compliance with lead exposure limits in military housing.
• Improving cyber resiliency: This legislation provides $365 million in additional funding to expand and accelerate cyber research across the Department of Defense, including $117 million for Army cybersecurity research efforts and $116 million in Missile Defense Agency cybersecurity enhancements. Warner has been a strong advocate for cyber resiliency and stronger cyber tools at the DoD.
• Defense Cyber Scholarship Program: The legislation includes Warner’s amendment to make available $7 million in funding for the DoD cyber defense scholarship program, bringing it in-line with the funding level from the House-passed appropriations package.  Warner successfully included a provision to boost the cyber scholarship program’s recruitment efforts in the FY19 National Defense Authorization Act.
• Defense Community Infrastructure Program: The legislation includes an amendment cosponsored by both senators to provide $20 million in funding for the defense community infrastructure pilot program. This program would provide DoD an opportunity to leverage community funding to improve off-base infrastructure, which is a critical need in the Hampton Roads region.

Education:

• Provides funding to help teachers, social workers, military personnel and other public servants cancel their student loan debt: For a second year includes $350 million for the Public Student Loan Forgiveness (PSLF) program that mirrors Kaine’s bill to fix a technical glitch that will allow borrowers who were in the wrong repayment program to be eligible for PSLF. 
• Includes language to help HBCUs access funds to make infrastructure improvements: Includes language from Kaine’s bill to require the HBCU Capital Financing Advisory Board, which provides financial guidance to the nation’s Historically Black Colleges and Universities (HBCUs), to provide Congress with a report on the loans granted under the program along with recommendations to address issues related to construction financing for HBCUs. 
• Increases access to Pell Grants: Increases the maximum Pell Grant award to $6,195, a $100 increase from FY18, and also includes support for year-round Pell Grant funding. 

Workers:

• Funds black lung health clinics: Fully authorizes black lung health clinics at $10 million.
• Provides $30 million to train rural and Appalachian workers: Includes $30 million to provide workforce training to dislocated workers in rural areas with a specific priority for Appalachian communities as well as $5 million to support workforce training for those affected by opioid addiction.  
• Provides $160 million to support apprenticeships: Includes $160 million for registered apprenticeship programs.
• Requires better tracking of career and technical occupations to help prepare the future workforce: Directs the Bureau of Labor and Statistics (BLS) to track and report on improvements they are making to the Current Population Survey (CPS) to collect data about career and technical occupations. With this data, the country will have more information to track where improvements are needed and ensure that the workforce is trained with the skills needed for jobs available in today’s economy.

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WASHINGTON, D.C. – Today, U.S. Senators Mark Warner and Tim Kaine announced $149,405 in federal funding for the Fries Fire Department through the Federal Emergency Management Agency’s (FEMA) Assistant to Firefighters Grant (AFG) program.  

“This federal funding will provide Fries Fire Department with necessary support to enhance operations and ensure the Department has the tools it needs to carry out daily operations and keep the community safe,” the Senators said. 

The primary goal of FEMA’s AFG program is to enhance the safety of the public and firefighters by providing direct financial assistance to eligible fire departments, nonaffiliated Emergency Medical Services organizations, and State Fire Training Academies for critically-needed resources.

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WASHINGTON, D.C. – Today, Senate Intelligence Committee Chairman Richard Burr (R-NC) and Vice Chairman Mark Warner (D-VA) released the following statement:

“We have obviously followed today’s reporting about Michael Cohen with great interest. He appears to be pleading guilty to very serious charges, however, we have no insight into any agreements he and his legal team have allegedly reached with prosecutors in New York. 

“What we can say is that we recently re-engaged with Mr. Cohen and his team following press reports that suggested he had advance knowledge of the June 2016 meeting between campaign officials and Russian lawyers at Trump Tower. Mr. Cohen had testified before the Committee that he was not aware of the meeting prior to its disclosure in the press last summer. As such, the Committee inquired of Mr. Cohen’s legal team as to whether Mr. Cohen stood by his testimony. They responded that he did stand by his testimony. 

“We hope that today’s developments and Mr. Cohen’s plea agreement will not preclude his appearance before our Committee as needed for our ongoing investigation.”

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, issued the following statement today after Facebook announced that it had removed 652 fraudulent Iranian-backed pages, groups, and accounts from Facebook and Instagram — as well as a number of pages, groups, and accounts linked to Russian military intelligence from Facebook. This announcement comes just weeks ahead of the September 5^th open hearing of the Senate Intelligence Committee with the leadership of Facebook, Twitter, and Google on the subject of social media manipulation.

“This is further evidence that foreign adversaries are actively using social media to divide Americans and undermine our democratic institutions. I’ve been saying for months that there’s no way the problem of social media manipulation is limited to a single troll farm in St. Petersburg, and that fact is now beyond a doubt. We also learned today that the Iranians are now following the Kremlin’s playbook from 2016. While I’m encouraged to see Facebook taking steps to rid their platforms of these bad actors, there’s clearly more work to be done. I look forward to questioning the leadership of Facebook, Twitter, and Google about this at the Intelligence Committee’s hearing on September 5^th.”

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, filed anamendment to the defense appropriations bill to prohibit President Trump from abusing the security clearance process to punish his critics. 

“President Trump’s actions over the last week are beyond outrageous. His tactics are reminiscent of another president who abused his office to settle scores and punish critics. By revoking or threatening to revoke the security clearances of former intelligence officials who have criticized his conduct in office, President Trump is setting an extremely dangerous precedent. He’s using the powers of his office in an attempt to intimidate and silence his opponents, and he is politicizing a process that is, by design, supposed to be non-partisan and apolitical,” said Sen. Warner today.  

Sen. Warner offered an amendment to the defense appropriations bill currently under debate on the Senate floor prohibiting the use of federal funds to revoke an individual’s security clearance, except in accordance with Part 147 of title 32, Code of Federal Regulations, and Executive Orders 12968 and 13467 as in effect on August 15, 2018 – the day President Trump revoked John Brennan’s security clearance. Text of the amendment is available here. 

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WASHINGTON, D.C. – U.S. Senators Mark Warner (D-VA) and Tim Kaine (D-VA) joined Jack Reed (D-RI) and 46 of their Democratic colleagues in a letter to Office of Management & Budget Director Mick Mulvaney to urge the Trump Administration to continue protecting servicemembers and their families from abusive financial practices. The Senators are asking the Trump Administration not to abandon protections established under the Military Lending Act (MLA). The MLA was passed in 2006 with bipartisan support to help safeguard active-duty military members and their families from financial fraud, predatory loans, and abusive credit practices.  Among other military consumer protections, the law caps the annual interest rate for an extension of consumer credit to a servicemember or their dependents at 36 percent.  

“The CFPB should not be abandoning its duty to protect our servicemembers and their families, and we seek your commitment that you will utilize all of the authorities available to the CFPB to ensure that servicemembers and their families continue to receive all of their MLA protections,” the Senators wrote.  

This week, the New York Times reported that: “The Trump Administration is planning to suspend routine examinations of lenders for violations of the Military Lending Act, which was devised to protect military service members and their families from financial fraud, predatory loans and credit card gouging, according to internal agency documents.  Mick Mulvaney, the interim director of the Consumer Financial Protection Bureau, intends to scrap the use of so-called supervisory examinations of lenders, arguing that such proactive oversight is not explicitly laid out in the legislation, the main consumer measure protecting active-duty service members, according to a two-page draft of the change.” 

And NPR reported that the Trump Administration is also taking aim at financial protections for members of the military by proposing to ease restrictions on “gap insurance” that could open up servicemembers to getting cheated by predatory practices when they purchase cars.

The Senators highlighted that U.S. troops face unique financial challenges and that the financial readiness of our servicemembers is directly tied to military readiness, calling on Mr. Mulvaney not to halt military lending checks or undertake measures that would potentially harm U.S. troops and their families.

“In addition, for our servicemembers, especially those who are deployed overseas facing hostile fire, it is unreasonable to place the burden of detecting and reporting MLA abuses on servicemembers, especially when they should be given every opportunity to focus squarely on their missions,” wrote the Senators.  “What the CFPB is reported to be contemplating is equivalent to forcing our armed forces to stop using radar, sonar, and other early warning technologies and instead react to threats as they occur.   No one would force our armed forces to do so, and the CFPB should not similarly force any of its examiners to turn a blind eye.  For generations, Americans have set partisanship aside and have made every effort to provide servicemembers and their families with all the resources and protections they deserve.  We ask no less of you and, as such, seek your commitment that you will continue the CFPB’s tradition of ensuring that servicemembers and their families receive all of their MLA protections by utilizing all of the authorities available to the CFPB.”

The Office of Servicemember Affairs at the CFPB has handled more than 90,000 consumer complaints from servicemembers and their families and taken action to help return hundreds of millions into the pockets of servicemembers affected by harmful practices. 

The text of the letter is below:    

August 15, 2018

Mick Mulvaney                                                                     

Director                                                                                

Office of Management and Budget                                       

725 17th Street, NW                                                               

Washington, DC 20503                                                        

Dear Director Mulvaney:

We write regarding reports that the Consumer Financial Protection Bureau (CFPB) will no longer protect servicemembers and their families by including the Military Lending Act (MLA) as part of the CFPB’s routine lender examinations due to a purported lack of authority.  These reports are puzzling because the CFPB already possesses the authority to enforce the MLA and examine many types of lenders for the purposes of “detecting and assessing risks to consumers and to markets for consumer financial products and services.”  The CFPB should not be abandoning its duty to protect our servicemembers and their families, and we seek your commitment that you will utilize all of the authorities available to the CFPB to ensure that servicemembers and their families continue to receive all of their MLA protections.

By enacting the MLA, Congress sent a clear bipartisan message that high-cost lending is a clear risk to military consumers that must be addressed to also protect military readiness.  Indeed, among its provisions, the MLA caps the annual interest rate for an extension of consumer credit to a servicemember or his or her dependents at 36%.  CFPB examinations and the CFPB’s Office of Servicemember Affairs have been critical components of ensuring the detection and prevention of risks to military consumers.  Such examinations serve as the early warning system for MLA deficiencies so that they do not snowball into costly losses for servicemembers and avoidable litigation costs and penalties for lenders.

Given your senior role at the Office of Management and Budget, we are sure you are aware that the MLA also helps the Department of Defense (DOD) to save taxpayer funds based on the following DOD justification for its MLA rule:

“Losing qualified Service members due to personal issues, such as financial instability, causes loss of mission capability and drives significant replacement costs. The Department estimates that each separation costs the Department $58,250.  Losing an experienced mid-grade noncommissioned officer (NCO), who may be in a leadership position or key technical position, may be considerably more expensive in terms of replacement costs and in terms of the degradation of mission effectiveness resulting from a loss of personal reliability for deployment and availability for duty.”

Needlessly stopping MLA examinations altogether and choosing instead to rely on reports of MLA violations after they occurred is further perplexing given that the CFPB is already conducting lender examinations of credit products that are also subject to the MLA.  Such a policy decision would be both inefficient and irresponsible to require a CFPB examiner to ignore as part of his or her examination risks to military consumers who are protected by the MLA.  In addition, for our servicemembers, especially those who are deployed overseas facing hostile fire, it is unreasonable to place the burden of detecting and reporting MLA abuses on servicemembers, especially when they should be given every opportunity to focus squarely on their missions.  

What the CFPB is reported to be contemplating is equivalent to forcing our armed forces to stop using radar, sonar, and other early warning technologies and instead react to threats as they occur.   No one would force our armed forces to do so, and the CFPB should not similarly force any of its examiners to turn a blind eye.  For generations, Americans have set partisanship aside and have made every effort to provide servicemembers and their families with all the resources and protections they deserve.  We ask no less of you and, as such, seek your commitment that you will continue the CFPB’s tradition of ensuring that servicemembers and their families receive all of their MLA protections by utilizing all of the authorities available to the CFPB.   We request that you respond with your commitment no later than Monday, August 20.

Sincerely,

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