WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) released the following statement after the U.S. Government Accountability Office (GAO) reported that the Black Lung Disability Trust Fund, which covers medical and living expenses for coal miners diagnosed with black lung disease, will be more than $15 billion in debt by 2050, putting coal miners’ benefits at risk.  

“Black lung disease has had a devastating impact on coal miners and their families across Virginia. Since my time in the Senate, I have fought on their behalf to ensure they receive their rightfully owed compensation for this debilitating illness.  We must ensure that we keep our promise to the thousands of coal miners suffering with black lung. Strengthening the system’s financing does that, without shifting the cost of these important payments onto taxpayers.”

The Black Lung Disability Trust Fund was established in 1978 to pay benefits to disabled miners suffering from black lung disease when the coal company responsible for paying benefits is bankrupt, closed or otherwise not able to pay. The Fund paid out $184 million in benefits last year to 25,700 coal miners suffering from the fatal mine dust disease, and their dependents. The Fund is supported by an excise tax on coal companies, but due to a variety of factors, the Fund has often had to borrow money from the U.S. Treasury in order to cover costs, leaving the Fund in the red by billions of dollars – a problem that will be exacerbated if Congress fails to take action by the end of this year, when the tax is set to be cut by more than half.  

Sen. Warner has been a strong advocate for coal miners and their families. In 2017, Sen. Warner reintroduced the Black Lung Benefits Improvement Act to ensure black lung claims are processed fairly and quickly, and he has pushed for more funding for black lung health clinics in Virginia. In December, he joined several of his colleagues in urging Secretary of Labor Alexander Acosta to keep the Respirable Dust Rule to protect mine safety and miners health. Last year, Sen. Warner successfully fought to permanently protect more than 10,000 retired coal miners and their families in Virginia who were in danger of losing their health benefits. He has also introduced the American Miners Pension Act, which would protect the pensions of more than 7,000 retired Virginia coal miners who are in danger of losing their benefits if the 1974 UMWA Pension Plan becomes insolvent.

###

WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, joined top Senate Democrats in sending a letter to President Trump outlining conditions for lifting sanctions as part of any deal with North Korea. The new letter comes ahead of the expected summit between President Trump and North Korean leader Kim Jong-un to discuss North Korea’s nuclear weapons program, and specifically lists five principles through which the Senators plan to evaluate any deal the President makes with North Korea. The Senators also say that Congress must act as a check on any agreement that does not live up to these principles by imposing tougher sanctions and oversight and the Trump administration must engage Congress throughout any diplomatic process – both before and after the possible summit - given the magnitude of this effort.

In order to earn the support of these Senate leaders for any deal that provides sanctions relief to North Korea, Sen. Warner and others specifically outlined in the letter to President Trump that a deal with North Korea must:  

1. Dismantle or remove every single one of North Korea’s nuclear, chemical, and biological weapons; 

2. End the production and enrichment of uranium and plutonium for military purposes, and permanently dismantle North Korea’s nuclear weapons infrastructure. This includes the destruction of test sites, all nuclear weapons research and development facilities and enrichment facilities;

3. Suspend all of North Korea’s ballistic missile tests and disable, dismantle and eliminate all of North Korea’s ballistic missiles and programs.  

4. Commit to robust compliance inspections including a verification regime for North Korea’s nuclear and ballistic missile programs. Inspections must have complete access to all nuclear related sites and facilities with real time verification of North Korean compliance.  A separate compliance regime for its chemical and biological weapons that prevents, detects and punishes cheating on the part of North Korea is also necessary.  These compliance regimes must include “anywhere, anytime” inspections and snap-back sanctions if North Korea is not in full compliance;  

5. Be permanent, without any sunsets.

In addition to Sen. Warner, the letter was signed by Senate Democratic Leader Chuck Schumer, Senate Foreign Relations Committee Ranking Member Bob Menendez, Assistant Senate Democratic Leader and Senate Committee on Appropriations Subcommittee on Defense Ranking Member Dick Durbin, Senate National Security Working Group Co-Chair Dianne Feinstein, Senate Appropriations Committee Vice-Chair and Senate Appropriations Subcommittee on State, Foreign Operations, and Related Programs Ranking Member Patrick Leahy, and Senate Committee on Banking Housing and Urban Affairs Ranking Member Sherrod Brown. 

The full text of the letter appears below.

The Honorable Donald J. Trump

President of the United States

The White House

1600 Pennsylvania Avenue, NW

Washington, DC  20500

Dear Mr. President: 

As you prepare for your June 12 meeting with Kim Jong Un, we write to express our desire for a diplomatic solution which provides for the complete dismantlement of North Korea’s nuclear and missile programs, as well as a broader process to address North Korea’s extensive military arsenal and to set the conditions for peace and stability on the Korean Peninsula.  A successful diplomatic agreement with North Korea, along with our allies South Korea and Japan and in cooperation with China, would represent an historic accomplishment for our nation.

It is widely recognized that North Korea has been seeking to develop the ability to launch a nuclear attack against the United States and Kim Jong Un has threatened to do so. In his May 24 testimony before the Senate Foreign Relations Committee, Secretary Pompeo stated that the goal of the administration’s policy is that “we are looking for the complete dismantlement of their weapon systems, the delivery capability associated with that, and all of the elements of their program that would lead them to have material that could be used at some time to build out a weapon system.” 

In order to achieve the goal of the complete, verifiable, and irreversible dismantlement of North Korea’s nuclear weapons and key missile programs, and as you develop your administration’s policy and strategy in advance of your on-again, off-again, and now seemingly on-again meeting with Kim Jong Un in Singapore, we therefore urge you to consider the following principles and goals for U.S. diplomacy and policy with regards to North Korea.

First, any agreement with North Korea must build on the current nuclear test suspension and ultimately include the dismantlement and removal of all nuclear, chemical, and biological weapons from North Korea.  Sanctions relief by the U.S. and our allies should be dependent on dismantlement and removal of North Korea’s nuclear weapons and ballistic missile programs.  Any deal that explicitly or implicitly gives North Korea sanctions relief for anything other than the verifiable performance of its obligations to dismantle its nuclear and missile arsenal is a bad deal.

China, we believe, will continue to play a critical role if North Korea moves to halt, dismantle, and remove its nuclear weapons, and we urge you to maintain a tough approach to China to assure that it, in turn, will do all it can to help secure an agreement and then insist on strict North Korean compliance with such an agreement.

Second, our goal must be the full, complete and verifiable denuclearization of North Korea. This must include the removal of all nuclear weapons and military-related fissile material from North Korea; ending the production and enrichment of uranium and plutonium for military programs; and permanently dismantling its nuclear weapons infrastructure, including test sites, all nuclear weapons research and development facilities, particularly with respect to advanced centrifuges, and nuclear weapons enrichment and reprocessing facilities.  North Korea must also put forward a full, complete and verifiable declaration of all its nuclear activities. Robust restrictions should also be in place to assure that nuclear material, technology, and expertise are not exported, and that North Korea will be unable to attempt to reverse course.

Third, North Korea must continue its current ballistic missile tests suspension, including any space launch. Ultimately, since North Korea’s nuclear weapons program is so advanced, any agreement must include the dismantlement of ballistic missiles and a prohibition on all ballistic missile development. In addition, sufficient safeguards must be in place to assure that no ballistic missiles and associated technology are proliferated or exported.   

Fourth, North Korea must commit to robust compliance inspections including a verification regime for its nuclear and ballistic missile programs.  Inspectors must have complete access to all nuclear-related sites and facilities with real time verification of North Korean compliance.  A separate compliance regime for its chemical and biological weapons programs that prevents, detects and punishes cheating on the part of North Korea is also necessary.  These compliance regimes must include “anywhere, anytime” inspections, including of all non-declared suspicious sites, and snap-back sanctions if North Korea is not in full compliance.

Finally, to be truly complete, verifiable and irreversible, any agreement with North Korea must be permanent in nature.

To be successful in such an ambitious undertaking, our regional allies – in particular the Republic of Korea and Japan – are indispensable to our success.  No concessions should be granted that could undermine our core alliance commitments or our posture in the region. 

We likewise believe, given the complexity of this effort, that the Administration should engage Congress throughout any diplomatic process. To ensure that Congress remains fully informed as negotiations proceed, we would therefore like to work with you and your administration to establish a process for regular and substantive briefings, including classified briefings, on U.S. policy and strategy both prior to your meeting with Kim Jong Un as well as regular briefings thereafter, including full engagement with the Senate Foreign Relations Committee and the National Security Working Group.  Should your administration develop any agreements requiring Senate consideration we of course look forward to working with you to assure appropriate review and disposition in Congress.

Meeting the challenge of North Korea’s nuclear and missile programs, building peace and stability on the Korean Peninsula, and addressing other critical matters, including North Korea’s human rights practices, are issues of longstanding concern to the American people as well as our allies and partners. We believe that Congress therefore has an important role to play in working with the administration to support your efforts and to shape U.S. policy toward North Korea.  However, we also believe that Congress must act as a check on any agreement that does not live up to these principles by imposing tougher sanctions and oversight. Democrats will look to the standards outlined in this letter as we examine whether North Korea should be granted sanctions relief.

We look forward to your thoughts both on the substance of policy and the principles we have outlined, as well as on how to best proceed with establishing a regular and substantive process for congressional engagement and consultation with your administration on these issues.  We look forward to working alongside you in the weeks and months ahead in pursuit of an agreement that effectively addresses the threat of a nuclear-armed North Korea in a manner that enhances the security of the United States, our allies, and the world.

Sincerely,

Robert Menendez

United States Senator

Charles E. Schumer

United States Senator

Richard J. Durbin

United States Senator

Mark R. Warner

United States Senator

Dianne Feinstein

United States Senator

Patrick Leahy

United States Senator

Sherrod Brown

United States Senator                        

###

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and cofounder of the Senate Cybersecurity Caucus, released the following statement after the Department of Homeland Security (DHS) and the Department of Commerce issued a joint report on how the federal government can combat botnets and other threats to the internet ecosystem:

“This report concludes that current market incentives do too little to promote security in internet-connected products, corroborating a longstanding concern I have had with the burgeoning market of Internet of Things (IoT) devices. The failure of these market forces to reward security over cost or convenience has led to devastating DDoS attacks (like the Mirai botnet) that contribute to internet-wide insecurity to this day.

“I am pleased to see the Departments of Commerce and Homeland Security acknowledge that the federal government should lead by example by requiring the acquisition of far more secure and resilient services and products; Congress should take the next step and pass bipartisan legislation I have introduced with Sen. Gardner that would set minimum security requirements for federal procurements of IoT devices.” 

###

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), a former Governor and a current member of the Senate Finance Committee, released the following statement after the Virginia Senate voted to expand the Medicaid program under the Affordable Care Act (ACA) 

“I’m thrilled that the Virginia Senate has decided partisan politics should no longer stand in the way of thousands of Virginia families getting the healthcare they need. I look forward to the House of Delegates soon doing the same.  

“Governor Northam and supporters of Medicaid expansion should be proud of this bipartisan achievement, but the real winners here are the hardworking Virginians who will finally have healthcare for their families.” 

###

WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Mike Crapo (R-ID) introduced bipartisan legislation to protect horses from the abusive practice known as “soring” – in which show horse trainers intentionally apply substances or devices to a horse's limb to make each step painful, forcing a horse to perform an exaggerated high-stepping gait that is rewarded in show rings. While soring is prohibited under federal law, a U.S. Department of Agriculture (USDA) Inspector General (IG) report has found that some horse trainers often go to great lengths to continue this inhumane practice. 

“For more than 400 years, horses have been a part of Virginia’s culture. But despite a federal ban, horse soring—an act that deliberately inflicts pain on these animals—continues in some segments of the walking horse industry,” said Sen. Warner. “This bipartisan bill will finally put an end to this cruel and abusive practice.”  

“We commend Senators Crapo and Warner for introducing the PAST Act to crack down on the terrible cruelty of horse soring. This legislation won’t cost taxpayers any additional money but it will fix gaping holes in the current federal law that have enabled this abuse to persist for almost half a century.  It’s time for Congress to enact these urgently-needed reforms – to get rid of the failed system of industry self-policing, eliminate the devices that are integral to the soring process, and establish meaningful penalties for perpetrators,” said Sara Amundson, President of Humane Society Legislative Fund.  

“The American Horse Council - the voice of the nation’s equine sector which directly supports nearly one million U.S. jobs and contributes $122 billion in Gross Domestic Product (GDP) - applauds the leadership of Sens. Mike Crapo (R-ID) and Mark Warner (D-VA) for introducing the Prevent All Soring Tactics (PAST) Act of 2018.   Although “soring” - which is the practice of inflicting pain on a horse’s limb to produce an accentuated gait - has declined since Congress enacted the Horse Protection Act in 1970, the PAST Act will build on this progress by modernizing inspection and revising penalties for violations,” said Julie M. Broadway, President of the American Horse Council. 

 “We are very pleased that the Prevent All Soring Tactics Act is being introduced in the Senate, and would like to thank Senators Warner and Crapo for their leadership on this important horse welfare issue. The AVMA condemns the act of soring and feels that the current system of inspection and enforcement is not sufficient to stop this inhumane practice,” said Dr. Michael Topper, President of the American Veterinary Medical Association. 

“Soring is an intentional, cruel act which must end. As doctors of veterinary medicine, the AAEP will continue to support the Prevent All Soring Tactics (PAST) Act and work to eliminate this inhumane practice on horses,” said Dr. Margo Macpherson, President of the American Association of Equine Practitioners. 

The Prevent All Soring Tactics (PAST) Act would: 

• Eliminate self-policing by requiring the USDA to assign a licensed inspector if the show's management indicates its intent to hire one. Licensed or accredited veterinarians, if available, would be given preference for these positions.

• Prohibit the use of action devices and pads on specific horse breeds that have historically been the primary victims of soring. Action devices, such as chains that rub up and down an already-sore leg, intensify the horse's pain when it moves, so that the horse quickly jolts up its leg.

• Increase the penalties on an individual caught soring a horse from a misdemeanor to a felony which is subject to up to three years' incarceration, increase fines from $3,000 to $5,000 per violation, and permanently disqualify three-time violators from participating in horse shows, exhibitions, sales or auctions.

In 2017, the USDA Office of Animal and Plant Health Inspection Service (APHIS) incorporated some of the major tenets of the PAST Act in a rule meant to strengthen certain aspects of the Horse Protection Act. However, the rule was not finalized before the end of the Obama Administration and the Trump Administration halted that process. The PAST Act would codify these changes into law.

Numerous groups have endorsed the bill, including the Humane Society of the United States, the American Horse Council, the American Society for the Prevention of Cruelty to Animals, the American Veterinary Medical Association, the Association of Prosecuting Attorneys, and the American Association of Equine Practitioners. The PAST Act was introduced in previous years by Sen. Warner and former Sen. Kelly Ayotte (R-NH).

###

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Banking Committee, released the following statement after President Trump signed his regulatory reform bill, S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, into law:

“The bipartisan Economic Growth, Regulatory Relief and Consumer Protection Act will provide meaningful relief to Main Street. It will roll back unnecessary and burdensome regulations on credit unions and small community banks while ensuring that larger banks remain subject to the rules I helped put in place after the financial crisis. This bill is the result of years of tough negotiations between Democrats and Republicans and will help small lenders provide mortgages and other credit to hardworking Virginians and small businesses. While this bill does not include everything Democrats wanted nor everything Republicans wanted, I’m proud of my colleagues for putting differences aside, finding common ground, and working together to pass this sensible, bipartisan bill into law.”  

The legislation is the result of bipartisan negotiations among Warner, Banking Committee Chairman Mike Crapo (R-ID), and Banking Committee members Sens. Joe Donnelly (D-IN), Heidi Heitkamp (D-ND) and Jon Tester (D-MT).

The legislation was endorsed by a number of Virginia banking institutions including the Virginia Bankers Association (VBA) and the Virginia Association of Community Banks (VACB).

 ###

WASHINGTON, D.C. – U.S. Senators Mark Warner and Tim Kaine have cosponsored the Hemp Farming Act of 2018, a bipartisan bill that would legalize and clearly define hemp as an agricultural commodity, removing it from the list of controlled substances. Currently, hemp falls under the definition of marijuana in the Controlled Substances Act and, while it is cultivated for research purposes in Virginia, the agriculture industry cannot currently grow it for commercial use. Hemp is distinct from marijuana in that it has a miniscule concentration of tetrahydrocannabinol (THC), and thus no narcotic capability. The plant is estimated to be used in more than 25,000 products spanning agriculture, textiles, recycling, automotive, furniture, food, nutrition, beverages, paper, construction materials and personal care.

“The American agricultural industry should not be held back by outdated restrictions on hemp production that prevent us from creating more jobs and growing our economy,” Warner said. “Hemp products are already bought, sold, and consumed right here in the United States. This bipartisan bill will help Virginia farmers, manufacturers and small businesses benefit from the economic growth we have seen in this industry.”

“Agriculture is Virginia’s leading economic sector, and I am always on the lookout for ways to support our agricultural economy,” Kaine said. “Hemp was grown in Virginia by Thomas Jefferson, and research and input from Virginia agricultural stakeholders, agricultural scientists at JMU and Virginia Tech, and economic development leaders like the Tobacco Commission have shown that it is safe and holds economic promise for rural Virginia. I’m satisfied that this bill takes sensible steps to address law enforcement concerns and, in turn, that it makes sense to remove industrial hemp from the federal controlled substance list.” 

The legislation will also give states the opportunity to become the primary regulators of hemp; allow hemp researchers to apply for competitive federal grants from the U.S. Department of Agriculture; and make hemp farmers eligible to apply for crop insurance. The legislation also addresses law enforcement concerns about hemp’s similarity to marijuana by requiring states to submit hemp growth and production plans for USDA approval. The 2014 farm bill authorized industrial hemp to be made available for agricultural research purposes. Virginia Tech, Virginia State University, the University of Virginia, and James Madison University have been active in hemp research in recent years.

View full text of the bill, here.

###

WASHINGTON — Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) announced $43,246,753 in federal funding to support affordable housing development across Virginia. The funding, which will go to 26 municipalities across the Commonwealth, has been awarded through the Department of Housing and Urban Development’s (HUD) Public Housing Capital Fund.

“Families all across the Commonwealth should have access to safe and affordable housing,” the Senators said. “We are pleased that these federal dollars will help support the health and safety of Virginia communities.”

President Trump’s FY 2019 budget eliminates funding for the Public Housing Capital Fund. The Capital Fund provides critical federal dollars to Public Housing Agencies (PHAs) in Virginia for the development, financing, and modernization of public housing developments and for managementimprovements. In March, Sens. Warner and Kaine voted in favor of the omnibus bill that provides more than $2.75 billion in funding to the Capital Fund program.

The selected Virginia housing authorities and funding amounts are listed below:

###

WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) joined a group of bipartisan Senators in sending a letter to the Secretary of the Treasury Steve Mnuchin, the Secretary of Commerce Wilbur Ross, and the U.S. Trade Representative Robert Lighthizer, urging the Administration to protect national security interests when negotiating the U.S.-China trade relationship. This comes after President Trump has publicly pledged to lift a seven-year ban on American firms doing business with Chinese telecom company ZTE.

“There can be no question that China seeks to surpass the U.S. both economically and militarily and become the world’s foremost superpower, and neither the Federal Government nor private U.S. companies should aid and abet that effort,” the Senators wrote.  “As such, we implore you to reject any proposal to soften restrictions on the transfer to China of U.S.-made military technologies and advanced dual-use technologies, including semiconductors." 

“We urge you not to compromise lawful U.S. enforcement actions against serial and pre-meditated violators of U.S. law, such as ZTE.  This is particularly critical when the violators are state-owned and -influenced, part and parcel of China’s policies and practices designed to strengthen its own national security innovation base, and essential tools of efforts to spread China’s influence in other countries that pose national security threats to the United States. Export control and sanctions laws should not be negotiable, because fidelity to the rule of law is a key part of what distinguishes the U.S. from a country like China that is ruled by a Communist dictatorship,” the Senators concluded.

As the Vice Chairman of the Senate Select Committee on Intelligence, Sen. Warner has publicly voiced his concern that rolling back trade restrictions on Chinese telecom company ZTE would pose significant national security risks to the United States. Last week, Sen. Warner joined a group of 34 Senators urging President Trump not reverse trade restrictions on ZTE. 

In addition to Sen. Warner, the letter was signed by Sens. Chuck Schumer (D-NY), John Cornyn (R-TX), Dianne Feinstein (D-CA), Marco Rubio (R-FL), Martin Heinrich (D-NM), Steve Daines (R-MT), Susan Collins (R-ME), Mike Rounds (R-SD), John Thune (R-SD), Sherrod Brown (D-OH), Johnny Isakson (R-GA), Roy Blunt (R-MO), Bob Casey (D-PA), Bill Cassidy (R-LA), Ted Cruz (R-TX), Ben Sasse (R-NE), Joe Manchin (D-WV), Chuck Grassley (R-IA), Jack Reed (D-RI), Bill Nelson (D-FL), David Perdue (R-GA), Debbie Stabenow (D-MI), Ron Wyden (D-OR), Tom Cotton (R-AR), Kamala Harris (D-CA), and Angus King (I-ME)

Full text of the letter can be found below.

The Honorable Steven Mnuchin        

Secretary of the Treasury             

U.S. Department of the Treasury   

1500 Pennsylvania Ave., NW     

Washington, DC  20220              

The Honorable Wilbur Ross

Secretary of Commerce              

U.S. Department of Commerce

1401 Constitution Ave., NW     

Washington, DC  20230             

The Honorable Robert E. Lighthizer

U.S. Trade Representative

Office of the U.S. Trade Representative

600 17th St., NW        

Washington, DC 20508

Dear Secretary Mnuchin, Secretary Ross, and Ambassador Lighthizer:

As you work to secure a fair and equitable trading and investment relationship with China for the American people, we write to express serious concerns over reports that China, in the ongoing negotiations, is pushing for access to U.S.-made military technologies and advanced dual-use technologies.  We strongly support these critical negotiations to rebalance the U.S.-China economic relationship, but U.S. national security must remain the paramount consideration.  Therefore, we strongly urge you to reject any proposal by China to loosen existing restrictions on the export or other transfer of these sensitive U.S. technologies.  Any such move would bolster China’s aggressive military modernization and significantly undermine long-term U.S. national security interests.  

We agree with General Joe Dunford, Chairman of the Joint Chiefs of Staff, that within seven years, China will pose the greatest threat to U.S. national security of any nation.  Likewise, we concur with the Department of Defense’s most recent report on “Military and Security Developments Involving the People’s Republic of China,” which states that “China’s military modernization is targeting capabilities with the potential to degrade core U.S. military-technological advantages.  To support this modernization, China uses a variety of methods to acquire foreign military and dual-use technologies . . . .  Several cases emerged in 2016 of China using its intelligence services, and employing other illicit approaches that violate U.S. laws and export controls, to obtain national security and export-restricted technologies, controlled equipment, and other materials.” 

Clearly, the Chinese Communist Party regards these sensitive technologies as essential for China’s military modernization and is accelerating its efforts to acquire such technologies through both legal and illegal means, including cyber theft, civil-military integration policies, coercion through joint ventures with foreign companies, targeted investment, and exploitation of the access of private Chinese nationals to such technologies.  We must guard against such efforts and remain vigilant in protecting our national security innovation base. 

As you know, export controls are designed to protect national security.  The relaxing of these or other technology transfer restrictions would directly contradict and undermine key parts of President Trump’s 2017 National Security Strategy (NSS).  The NSS states that, “China and Russia . . . are fielding military capabilities designed to deny America access in times of crisis and to contest our ability to operate freely in critical commercial zones during peacetime.  In short, they are contesting our geopolitical advantages and trying to change the international order in their favor.”

There can be no question that China seeks to surpass the U.S. both economically and militarily and become the world’s foremost superpower, and neither the Federal Government nor private U.S. companies should aid and abet that effort.  As such, we implore you to reject any proposal to soften restrictions on the transfer to China of U.S.-made military technologies and advanced dual-use technologies, including semiconductors.  We do support a balanced and constructive relationship with China, but one that is clear-eyed about China’s predatory, comprehensive efforts to acquire sensitive technologies that would increase the risk China poses to the United States and our allies in the Indo-Pacific region and elsewhere.  

In addition, we urge you not to compromise lawful U.S. enforcement actions against serial and pre-meditated violators of U.S. law, such as ZTE.  This is particularly critical when the violators are state-owned and -influenced, part and parcel of China’s policies and practices designed to strengthen its own national security innovation base, and essential tools of efforts to spread China’s influence in other countries that pose national security threats to the United States.  Export control and sanctions laws should not be negotiable, because fidelity to the rule of law is a key part of what distinguishes the U.S. from a country like China that is ruled by a Communist dictatorship. 

Thank you for your attention to these concerns. 

Sincerely,

CC:  The Honorable James N. Mattis, Secretary of Defense

        The Honorable Mike Pompeo, Secretary of State

         The Honorable John Bolton, Assistant to the President for National Security Affairs

###

WASHINGTON – U.S. Senators Bob Menendez (D-N.J.), Ranking Member of the Senate Foreign Relations Committee, Mark Warner (D-Va.), Vice Chairman of the Senate Select Committee on Intelligence, and Sherrod Brown (D-Ohio.), Ranking Member of the Senate Banking Committee, today requested three separate Inspector Generals open up probes into the Trump Administration’s failure to fully impose legally mandated sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA). 

In a letter addressed to the Inspector Generals of the U.S. Department of State and Broadcasting Board of Governors, U.S. Department of the Treasury, and the Intelligence Community, the senators listed a series of instances where the Trump administration’s mixed signals or inaction have resulted in flouting seven mandatory CAATSA provisions, despite clear evidence of sanctionable activity.

“In light of these apparent violations and the lack of corresponding sanctions, we are concerned about whether the sanctions implementation process within the administration is fulfilling CAATSA’s mandate and intent,” wrote the senators. “Likewise, it seems clear that several weeks ago the administration had identified specific Russian entities that had played a role in supplying or otherwise supporting the government of Syria’s chemical weapons program, had prepared a list of such entities for sanctions designation, and Ambassador Nikki Haley publicly announced their imminent designation -- but then did not designate them, reportedly at the direction of the President.” 

It has been ten months since Congress overwhelmingly passed CAATSA’s wide-ranging mandatory sanctions measures to hold Russia accountable for their destabilizing activities against our country and nations around the world. 

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

May 19, 2018

Mr. Steve A. Linick

Inspector General, U.S. Department of State and Broadcasting Board of Governors

U.S. Department of State

Office of Inspector General

1700 North Moore Street

Arlington, VA  22209

Mr. Eric M. Thorson

Inspector General, U.S. Department of the Treasury

Office of Inspector General

1500 Pennsylvania Avenue, N.W.

Washington, D.C.  20220

Mr. Wayne A. Stone

Acting Inspector General of the Intelligence Community

Office of the Inspector General of the Intelligence Community

Investigations Division

Washington, D.C.  20511

 Dear Inspectors General Linick, Thorson, and Stone:

We are writing to request that you conduct a review of your respective department’s/community’s role in implementing the Countering America’s Adversaries Through Sanctions law (CAATSA), signed by President Trump on August 2, 2017.  

Several mandatory provisions of the law have not been implemented by the administration, despite strong evidence that actions taken by or on behalf of the Russian government are in violation of the CAATSA sanctions law and applicable executive orders codified by CAATSA.  For example, the U.S. government released a joint statement on April 16, 2018 with British authorities that accused Russian government-backed hackers of conducting cyber attacks in other countries, including the U.S., which should trigger sanctions under Section 224 of CAATSA. Yet the administration has not imposed any such sanctions in response, nor has it issued waivers under this provision.  

Likewise, it seems clear that several weeks ago the administration had identified specific Russian entities that had played a role in supplying or otherwise supporting the government of Syria’s chemical weapons program, had prepared a list of such entities for sanctions designation, and Ambassador Nikki Haley publicly announced their imminent designation -- but then the administration did not designate them, reportedly at the direction of the President.  This raises obvious questions about the provision of Russian technology or support to Syria in violation of Section 234 of the law.

Overall, CAATSA includes seven mandatory provisions (Sections 224, 225, 226, 228, 231, 233 and 234) which we believe merit further examination.    We also remain concerned that the administration has not formally determined whether individuals are conducting significant transactions with the Russian defense and intelligence sectors under Section 231.   Without such determinations, it is impossible to ascertain whether individuals are substantially reducing significant transactions with these entities as outlined in the law.

In light of these apparent violations and the lack of corresponding sanctions actions, we are concerned about whether the sanctions implementation process within the administration is fulfilling CAATSA’s mandate and intent.  In general, with respect to mandatory measures, the President is required to make determinations in the event that he has established that sanctionable behavior has taken place, and then either impose sanctions or exercise a waiver.  We understand that only one determination, with respect to Section 224, has been made under new congressionally-mandated CAATSA sanctions since the law went into effect last August. 

As part of your respective reviews, we request that you address the following issues and make any necessary recommendations for improvement:

1.      Why have mandatory provisions of the law not been implemented, despite clear evidence of sanctions violations?

2.      What are the internal processes by which your respective agencies have contributed to the creation of Russia sanctions designation packages when CAATSA or applicable executive orders are violated?

3.      How has interagency coordination taken place with respect to CAATSA implementation, or other provisions of law or executive orders related to Russia, and is the inter-agency review process working as it should? 

4.      Are there obstacles in the inter-agency review process of which Congress should be made aware, as administration officials consider imposing additional sanctions on Russian actors consistent with current law?

Thank you for your consideration of our request.

Sincerely,

###

WASHINGTON — Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) sent a letter to U.S. Secretary of Health and Human Services (HHS) Alex Azar, urging him to take swift action to stabilize the insurance marketplace. On May 4, the majority of health insurers filed initial rates with the Virginia Bureau of Insurance proposing to raise premiums between 15 and 64 percent in 2019 – a move that could impact more than 400,000 Virginians who purchase their health care coverage through the individual marketplace. 

“We are concerned that these substantial rate increases will negatively impact hundreds of thousands of individuals in Virginia that purchase their plans on the health insurance marketplace,” wrote the Senators. “Additionally, we are disappointed to know that these increased costs are largely a result of policies the U.S. Department of Health and Human Services (HHS) and Republicans in Congress have pursued and implemented.”

In 2017, the Trump Administration ended cost sharing reduction payments under the Affordable Care Act, a move that subsequently destabilized the individual marketplace and increased premiums for people who do not receive financial assistance on the marketplace.  Since then, Congressional Republicans and the Administration have taken several steps to undermine the success of the Affordable Care Act, including repealing the individualmandate and expanding the availability of short-term health plans that don’t cover many basic health care costs such as prescription drugs, maternity care, or preventive health services. According to experts, expanding the availability of these plans – which don’t protect consumers from discrimination on the basis of age, gender, or pre-existing conditions – will draw younger and healthier consumers out of the health care marketplaces and further raise premiums for individuals who depend on the individual market to purchase their health care coverage.   

In filing their proposed rates for 2019 with the Virginia Bureau of Insurance, insurers directly cited the elimination of cost-sharing reductions, the expansion of short-term plans, and the elimination of the individual mandate to justify double-digit rate increases.  

“Double digit premium increases are not only unacceptable, they are also avoidable. We are committed to work with you to take proactive steps to lower premiums in Virginia and across the country. This would include prioritizing proposals that would establish a federal reinsurance program and continuing cost sharing reduction payments while adopting policies to hold harmless those people who do get financial help in the marketplace,” the Senators told Sec. Azar. “We also would encourage you to revise your recently proposed rule to expand the use of short term limited duration plans. Finally, we urge you to reverse recent policies to shorten the annual open enrollment period, slash funding for consumer outreach and assistance, and other efforts to undermine consumer protections. Without these important changes it is likely Virginians and other Americans will continue to experience significant premium increases in the future.”

In addition, according to a study by Medicare's chief actuary that was released on Tuesday, President Trump’s plan to expand short-term health insurance policies will drive up federal spending by $1.2 billion next year and by a total of $38.7 billion over 10 years – significantly more than the Trump Administration’s original estimates.

Sens. Warner and Kaine previously raised similar concerns in a public statement after Virginia insurers filed their initial rates for 2019.

The full text of today’s letter can be found below and here.

Honorable Alexander M. Azar II

Secretary

U.S. Department of Health & Human Services

200 Independence Avenue, S.W.

Washington, D.C. 20201 

Dear Secretary Azar,

We write to you regarding the 2019 proposed premium rates in Virginia. The majority of insurers filed proposed rates with the Virginia Bureau of Insurance earlier this month that propose to increase premium rates for plans on the health insurance marketplace between 15 and 64 percent in 2019. We are concerned that these substantial rate increases will negatively impact hundreds of thousands of individuals in Virginia that purchase their plans on the health insurance marketplace. Additionally, we are disappointed to know that these increased costs are largely a result of policies the U.S. Department of Health and Human Services (HHS) and Republicans in Congress have pursued and implemented.

Virginia insurers have directly cited actions by HHS to eliminate cost sharing reduction payments, which increased premiums for those who don’t get financial help in the marketplace, and a recently proposed rule to expand the use of short term limited duration (STLD) plans when explaining the justification for their substantial rate increases. In addition, insurers have stated that premiums were further increased when Republicans in Congress and President Trump passed legislation repealing the individual shared responsibility provision. Together, these changes have made it more difficult – and in some cases impossible – for many Virginians to afford their health care premiums.

Doctors, hospitals, patient organizations and the medical community have raised concerns that the actions listed above will result in patients paying more money for less care. They have the potential to disproportionally hurt older Americans and individuals with pre-existing conditions by making it more difficult for them and other Virginians to get affordable plans that cover basic benefits such as hospitalization, behavioral health, prescription drugs, and maternity care. The Urban Institute estimated that the impact on premiums due to expanded STLD policies and the loss of the individual shared responsibility provision is 19 percent, while, the non-partisan Congressional Budget Office projects that repeal of the ACA’s individual shared responsibility provision alone will increase individual market premiums by 10 percent in 2019.

Double digit premium increases are not only unacceptable, they are also avoidable. We are committed to work with you to take proactive steps to lower premiums in Virginia and across the country. This would include prioritizing proposals that would establish a federal reinsurance program and continuing cost sharing reduction payments while adopting policies to hold harmless those people who do get financial help in the marketplace. We also would encourage you to revise your recently proposed rule to expand the use of short term limited duration plans. Finally, we urge you to reverse recent policies to shorten the annual open enrollment period, slash funding for consumer outreach and assistance, and other efforts to undermine consumer protections. Without these important changes it is likely Virginians and other Americans will continue to experience significant premium increases in the future.

We are willing to work with you on the steps listed above and other proposals that will stabilize the health insurance marketplace and reduce premiums for enrollees. We simply ask that you work with us, rather than against us, to achieve the important and shared goal of ensuring affordable and accessible health care coverage for Virginians. Thank you for your consideration of our letter and we look forward to your response.

Sincerely,

###