Press Releases
WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) released the following statement on the annual reports to Congress from the Medicare and Social Security trustees:
“These reports share some of the hard truths I have laid out since I first came to Congress. We need to work together to strengthen Social Security and Medicare so they can still be here for future generations. But it is a sad state of affairs when my Republican colleagues seem to only be concerned about deficit spending and exercise fiscal discipline when they don’t control Congress or the White House. This became clear when they abandoned common sense and embraced fantasyland economics to pass $2.5 trillion in unpaid tax cuts that primarily benefit the wealthy and corporations, who continue to spend their tax cuts on share buybacks instead of investing in our workforce. It is time for members of both parties to come together to address our long-term fiscal situation and find a balanced solution that assures the success of these two vital entitlement programs.”
WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking Committee, released the following statement regarding the reported ZTE agreement lifting the Commerce Department ban:
“If these reports are accurate, this is a huge mistake. ZTE poses a threat to our national security. That’s not just my opinion – it’s the unanimous conclusion of our intelligence community.”
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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.
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Pelosi, Schumer, Schiff, and Warner Send Letter to DOJ on Materials Briefed to “Gang of 8”
Jun 05 2018
Washington, DC – Today, House Democratic Leader Nancy Pelosi (D-CA), U.S. Senate Democratic Leader Chuck Schumer (D-NY), House Intelligence Committee Ranking Member Adam Schiff (D-CA), and Senate Intelligence Committee Vice Chairman Mark Warner (D-VA) sent a letter to Deputy Attorney General Rod Rosenstein and FBI Director Christopher Wray requesting that the Department of Justice confirm that they have not given the President’s outside counsel, White House staff or the President access to the same classified information briefed to Congress.
“We remain deeply troubled by President Donald Trump and his legal team’s persistent efforts to interfere with the Special Counsel’s ongoing investigation and undermine your agencies’ lawful activities,” the Members wrote in the letter. “These developments leave us concerned that, through his legal team or otherwise, the President will continue to pressure your agencies to divulge investigative information which he, his attorneys, and his congressional allies then could manipulate or even disclose publicly for the President’s benefit. That would be a terrible abuse of power.”
In the letter, Schumer, Pelosi, Warner and Schiff also request confirmation that the DOJ and FBI have no plans to convey such information to the same individuals in the future outside of appropriate judicial proceedings, and that going forward, the DOJ will not brief additional Members of Congress beyond the “Gang of 8” on these matters.
After the May 24 briefing to the “Gang of 8,” Schumer, Pelosi, Warner and Schiff released the following statement: “Nothing we heard today has changed our view that there is no evidence to support any allegation that the FBI or any intelligence agency placed a ‘spy’ in the Trump Campaign, or otherwise failed to follow appropriate procedures and protocols.”
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The full letter is below:
Dear Deputy Attorney General Rosenstein and Director Wray:
We remain deeply troubled by President Donald Trump and his legal team’s persistent efforts to interfere with the Special Counsel’s ongoing investigation and undermine your agencies’ lawful activities.
Most recently, Rudy Giuliani, one of the President’s personal attorneys, repeated publicly that the White House and the President’s lawyers expect access to classified information of the utmost sensitivity related to the Special Counsel’s ongoing investigation. Executive agencies earlier had briefed this information to select Members of Congress in response to a publicly-announced directive from President Trump. Giuliani also said that the President will refuse to be interviewed by the Special Counsel, unless the President’s attorneys are permitted to review related classified documents.
These demands, if fulfilled, would grossly violate our system of checks and balances, established procedure and fundamental norms. Although he has not been indicted, President Trump’s own conduct reportedly remains under examination by the Special Counsel. And absent an indictment, the subjects of federal investigation cannot access law enforcement or related national security information for any reason.
As the President’s attorney has made clear, his legal team wishes to obtain the classified information at issue, not for any legitimate purpose—but instead to frustrate and discredit publicly the work of the Department of Justice and the Federal Bureau of Investigation.
These developments leave us concerned that, through his legal team or otherwise, the President will continue to pressure your agencies to divulge investigative information which he, his attorneys, and his congressional allies then could manipulate or even disclose publicly for the President’s personal or political benefit. That would be a terrible abuse of power.
We thus respectfully request that the Department of Justice confirm, in writing, by no later than 5 p.m. on Monday, June 11:
(1) that the following parties have not been given access to the classified information, which executive branch agencies briefed to the “Gang of 8” on May 24, 2018:
· Rudy Giuliani, Jay Sekulow, or any other attorney who represents or has represented President Trump in his personal capacity;
· White House staff, including attorneys from the White House Counsel’s office;
· President Donald J. Trump;
(2) that DOJ and FBI have no plans to convey such information in the future to the President and his attorneys outside of an appropriate judicial proceeding; and
(3) that going forward, DOJ and FBI will not brief additional Members of Congress who are not part of the “Gang of 8” on these matters.
Thank you for your immediate attention to our concerns, which are of the utmost urgency. We look forward to your reply.
Sincerely,
NANCY PELOSI House Democratic Leader |
CHUCK SCHUMER Senate Democratic Leader |
ADAM SCHIFF Ranking Member, House Intelligence Committee |
MARK WARNER Vice Chairman, Senate Intelligence Committee |
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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:
- Dismantle or remove every single one of North Korea’s nuclear, chemical, and biological weapons;
- 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;
- Suspend all of North Korea’s ballistic missile tests and disable, dismantle and eliminate all of North Korea’s ballistic missiles and programs.
- 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;
- 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
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WASHINGTON, D.C. -- Today, U.S. Senators Mark R. Warner and Tim Kaine released the following statement after several countries announced retaliatory tariffs in response to President Trump’s decision to impose tariffs on key U.S. allies:
“President Trump’s decision to impose tariffs on some of our closest allies is threatening the livelihood of Virginia farmers. The European Union, Canada, and Mexico are now starting to retaliate by imposing steep tariffs of their own on many products produced in Virginia, like pork, apples, corn, and grapes. Over the last few months, we have met with Virginia farmers who have stressed the importance of stability. Instead, the President is starting a trade war that will make it harder for them to export their products overseas, and make food, beverages, and other everyday products more expensive here at home. When Virginians go to the store to buy beer or groceries this summer, they’ll likely pay higher prices because of Trump’s actions. We urge the President to reverse course, make it clear to our allies and trade partners that we are honest brokers, and give some peace of mind back to farmers and families in Virginia.”
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Sen. Warner on DHS, Commerce Botnet Cyber Report
May 31 2018
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.”
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WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) announced that James Madison University (JMU) will receive $1,199,748 in federal funding to recruit Science, Technology, Engineering and Math (STEM) students to become secondary and middle school teachers in Harrisonburg City Public Schools.
“We are pleased that this federal funding will allow James Madison University and community colleges in the region to partner with local schools to enhance STEM education,” said the Senators. “These efforts will help meet the educational needs of the local community while giving folks an opportunity to secure an in-demand, high-paying job in any of these advanced fields.”
The funds, awarded by the National Science Foundation’s (NSF) Robert Noyce Scholarship Program, will help expand recruiting efforts across all STEM fields and help JMU education graduates become outstanding STEM educators. As a result of the project, JMU, in partnership with Blue Ridge Community College and Piedmont Virginia Community College, hopes to prepare and place 32 Noyce Scholars, over the five years of the award, in Harrisonburg City Public Schools.
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Sen. Warner on Virginia Medicaid Expansion
May 30 2018
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.”
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Senate Intel Vice Chair Warner on ZTE
May 26 2018
WASHINGTON — U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, released the following statement regarding the Trump administration’s deal on ZTE:
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Warner Leads Effort to Urge Banking Regulators to Strengthen Credit Access for Low-Income Communities
May 25 2018
WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) and a group of 15 Senators sent a letter to the Office of the Comptroller of the Currency (OCC), the Chairman of the Board of Governors of the Federal Reserve System, and the Chairman of the Federal Deposit Insurance Corporation (FDIC), urging them to take steps that would strengthen access to credit for diverse communities under the Community Reinvestment Act (CRA).
The CRA was signed into law in 1977 to provide a framework to ensure that banks serve the needs of all members of their community, regardless of their race, gender, or income. By ensuring that banks provide access to credit for low- and middle-income (LMI) communities, the CRA has helped ameliorate redlining that has disadvantaged minorities and disinvestment that has harmed urban and rural communities. As a result, the CRA has expanded homeownership to more Americans, financed more small businesses, and transformed local economies.
The Senators urged the agencies to take the opportunity to strengthen the CRA by expanding its applicability to regions and institutions that are not currently covered by the CRA and avoid proposals that could undermine the long-standing effectiveness of the law. In addition, the Senators emphasized the need to reflect the impact of digital banking in any new regulations.
“When the CRA became law in 1977, a bank’s geographic footprint and the areas surrounding it was a good proxy for the communities served by the bank. That no longer holds true. A bank should be examined under the CRA for how it serves LMI communities where it has a physical footprint and in areas where the bank accepts deposits and does substantial business, and it should receive CRA credit for qualifying loans and investments made in those areas,” wrote the Senators.
The Senators also advised the federal agencies to avoid proposals that could undermine the effectiveness of the CRA. “While we generally support expansions that benefit LMI communities, we are concerned that permitting expansions for banks with ‘less than satisfactory’ ratings undermines the only formal compliance mechanism that exists under the CRA,” the Senators warned. “Furthermore, we believe that narrowing the universe of loans with respect to which a regulator evaluates a bank’s illegal or discriminatory credit practices is inconsistent with a key finding of Congress in passing the CRA: banks must demonstrate that they ‘serve the convenience and needs of the communities in which they are chartered to do business.’”
In addition to Sen. Warner, the letter was signed by Sens. Tim Kaine (D-VA), Cory Booker (D-NJ), Sherrod Brown (D-OH), Catherine Cortez Masto (D-NV), Elizabeth Warren (D-MA), Doug Jones (D-AL), Amy Klobuchar (D-MN), Bob Menendez (D-NJ), Kirsten Gillibrand (D-NY), Dianne Feinstein (D-CA), Brian Schatz (D-HI), Chris Van Hollen (D-MD), Gary Peters (D-MI), Ron Wyden (D-OR), and Debbie Stabenow (D-MI).
The full letter text is found below and here.
The Honorable Jerome H. Powell
Chairman
Board of Governors of the Federal Reserve System
550 17th Street, NW
Washington, D.C. 20552
The Honorable Joseph M. Otting
Comptroller of the Currency
400 Seventh Street SW
Washington, D.C. 20219
The Honorable Martin J. Gruenberg
Chairman
Federal Deposit Insurance Corporation
20th Street and Constitution Avenue, NW
Washington, D.C. 20551
Dear Chairman Powell, Comptroller Otting, and Chairman Gruenberg:
For over 40 years, the Community Reinvestment Act (CRA) has been critical in encouraging depository institutions (banks) to serve the credit needs of rural and urban low- and moderate-income (LMI) individuals, small businesses, and communities. The CRA requires federal banking regulators to regularly assess each bank’s delivery of credit to LMI communities and consider that assessment when evaluating a bank’s application to expand. In doing so, the CRA has helped ameliorate redlining that has disadvantaged minorities and disinvestment that has harmed urban and rural communities.
We understand that your agencies are considering publishing an advance notice of proposed rulemaking that could suggest significant changes to the implementation of the CRA. We hope that you take this opportunity to strengthen the CRA, broaden its applicability to more regions and institutions, and avoid proposals that could undermine the continuing effectiveness of the CRA.
A strong CRA continues to be needed. Black homeownership rates fell by 5 percent from 2001 to 2016 even as white homeownership rates fell by only 1 percent.[1] Meanwhile, Hispanic homeownership has declined 5 percent from its 2007 peak.[2] Access to credit for minority-owned businesses remains challenging. Black-owned companies apply for credit at a rate that is 10 percentage points higher than white-owned companies, and Hispanic-owned companies do so at a 7 percent higher rate. But the approval rates for black-owned companies are 19 percentage points lower than white-owned companies and 6 percent lower for Hispanic-owned companies. Forty percent of black-owned companies and over 20 percent of Hispanic-owned companies that did not apply for financing did not apply because they thought they would not be approved, compared to 14 percent of white-owned firms.[3]
A substantial body of evidence shows the significant positive contribution the CRA has made to LMI communities, helping all communities benefit from increased access to credit and economic growth. One 2017 study found that the CRA increases credit activity by 9 percent and the number of “credit visible” individuals in the community by 7 percent.[4] Another 2017 study linked the CRA to increased small business lending activity in LMI communities.[5] Benefits have also flowed to smaller metropolitan and rural areas; a recent analysis shows that community development financing by banks headquartered in Appalachia reached $8.8 billion from 2007 to 2010.[6] What the CRA does not do is also important: studies have demonstrated that the CRA does not increase delinquencies or foreclosures and did not contribute to the subprime crisis.[7]
Some changes to the implementation of the CRA are long overdue. For example, there is a need to reflect technology’s significant and continuing transformational effect on the delivery of banking services. In a memorandum dated April 3, 2018, the Department of the Treasury (Treasury) recommends updating the definition of a bank’s CRA assessment area to better account for the range of delivery channels that banks offer. When the CRA became law in 1977, a bank’s geographic footprint and the areas surrounding it was a good proxy for the communities served by the bank. That no longer holds true. A bank should be examined under the CRA for how it serves LMI communities where it has a physical footprint and in areas where the bank accepts deposits and does substantial business, and it should receive CRA credit for qualifying loans and investments made in those areas.
A related phenomenon is that as bank branch footprints shrink due to a variety of causes—including the increased adoption of digital banking—rural areas increasingly rely on internet banking to deliver access to credit or branches far from their community. To ensure the CRA is an effective tool against rural disinvestment, banking regulators should reassess whether scoping guidance for examiners should encourage the classification of more rural communities as full scope assessment areas instead of limited scope assessment areas.
Another area that we and Treasury agree deserves renewed consideration is the inclusion of bank affiliates’ performance under the lending test. Under current regulations, a bank can choose whether its affiliates’ loans are included in its CRA performance assessment. This can lead to strategic behavior by banks, who are incentivized to include affiliates’ loans when it benefits their CRA performance and exclude them when it harms CRA performance. A bank should not have the discretion to exclude from CRA evaluation loans made by its affiliates; all loans made by a bank’s affiliates should be included in the bank’s CRA evaluation.
The digitization of banking also means that it is appropriate to re-evaluate the CRA’s service test, which assesses the number and types of investments made and services provided by a bank to LMI communities in its assessment area. Clearly, physical branches are no longer the only way for banks to deliver access to credit. Although technology has certainly helped expand access to credit through alternative delivery systems, studies continue to show that physical branches still provide a significant boost to access to credit to their surrounding community. For example, a 2014 study found that, even in crowded markets, a branch closing results in 13 percent fewer small business loans, and the effect is concentrated in low-income and high-minority neighborhoods.[8] We urge you to keep in mind that although digital banking has increased access to credit for many, branches continue to be important, particularly for LMI communities, due to the information-intensive and relationship-specific credit production in those areas compared to higher income areas.
One suggestion included in the Treasury memorandum that gives us pause is the recommendation that the other banking regulators adopt two recent Office of the Comptroller of the Currency (OCC) policies: one permits banks to open or acquire branches even if a bank has a “less than satisfactory” CRA rating, provided that the applicant demonstrate that the expansion benefits the communities it serves, and the other limits the effect illegal or discriminatory credit practices can have on a bank’s CRA rating. While we generally support expansions that benefit LMI communities, we are concerned that permitting expansions for banks with “less than satisfactory” ratings undermines the only formal compliance mechanism that exists under the CRA: the prospect that the banking regulators will deny those banks’ expansion applications. To put this in context, banks have received “Satisfactory” or “Outstanding” grades in 98 percent of CRA examinations since 2010.[9] We believe that limiting exceptions to this enforcement mechanism is likely to result in more benefits to LMI communities through increased CRA compliance than would be achieved by occasionally approving applications from poor performing banks when the expansion would provide increased benefits to LMI communities. Furthermore, we believe that narrowing the universe of loans with respect to which a regulator evaluates a bank’s illegal or discriminatory credit practices is inconsistent with a key finding of Congress in passing the CRA: banks must demonstrate that they “serve the convenience and needs of the communities in which they are chartered to do business.”[10]
The recent Treasury memorandum suggests a number of other sensible updates to CRA regulations, such as permitting banking regulators to preclear community development financings as qualifying investments and making those determinations public, and improving the objectivity and comparability of CRA exam performance metrics.
Thank you for your attention to the CRA, one of the most important tools we have for inclusive access to credit and economic growth.
Sincerely,
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[1] Laurie Goodman, Alana McCargo, & Jun Zhu, A closer look at the fifteen-year drop in black homeownership, Urban Institute (Feb. 13, 2017), https://www.urban.org/urban-wire/closer-look-fifteen-year-drop-black-homeownership.
[2] Richard Fry & Anna Brown, In a Recovering Market, Homeownership Rates Are Down Sharply for Blacks, Young Adults, Pew Research Center (Dec. 15 2016),http://www.pewsocialtrends.org/2016/12/15/in-a-recovering-market-homeownership-rates-are-down-sharply-for-blacks-young-adults/.
[3] Federal Reserve Bank of Cleveland & Federal Reserve Bank of Atlanta, 2016 Small Business Credit Survey, Report on Minority-Owned Firms (Nov. 2017), at 7-17, https://www.clevelandfed.org/~/media/content/community%20development/smallbusiness/2016%20sbcs/sbcs%20minority%20owned%20report.pdf?la=en.
[4] Kristin F. Butcher & Ana Patricia Muñoz, “Using Credit Reporting Agency Data To Assess the Link Between the Community Reinvestment Act and Consumer Credit Outcomes,” 19Cityscape 2, 97-98 (2017).
[5] Raphael W. Bostic & Hyojung Lee, “Small Business Lending Under the Community Reinvestment Act,” 19 Cityscape 2, 81 (2017).
[6] Josh Silver & Archana Pradhan, National Community Reinvestment Coalition; Spencer M. Cowan, Woodstock Institute, Access to Capital and Credit in Appalachia and the Impact of the Financial Crisis and Recession on Commercial Lending and Finance in the Region (July 2013), at 138, https://www.arc.gov/assets/research_reports/AccessToCapitalAndCreditInAppalachia-July2013.pdf.
[7] See, e.g., Robert B. Avery & Kenneth P. Brevoort, The Subprime Crisis: Is Government Housing Policy
to Blame?, Board of Governors of the Federal Reserve System (2011), https://www.federalreserve.gov/pubs/feds/2011/201136/201136pap.pdf; Glenn Canner & Neil Bhutta, Staff Analysis of the Relationship Between the CRA and the Subprime Crisis, Board of Governors of the Federal Reserve System (Nov. 21, 2008), https://www.federalreserve.gov/images/20081203_analysis.pdf.
[8] Hoai-Luu Q. Nyugen, Do Bank Branches Still Matter? The Effect of Closings on Local Economic Outcomes (Dec. 2014), at 3, http://economics.mit.edu/files/10143.
[9] Ben Horowitz, Fair lending laws and the CRA: Complementary tools for increasing equitable access to credit, Federal Reserve Bank of Minneapolis (Mar. 8, 2018),https://minneapolisfed.org/publications/community-dividend/fair-lending-laws-and-the-cra-complementary-tools-for-increasing-equitable-access-to-credit.
[10] 12 U.S.C. § 2901(a)(1).
Warner Leads Effort to Urge Banking Regulators to Strengthen Credit Access for Low-Income Communities
Statement On Behalf Of Leader Schumer, Leader Pelosi, Vice Chairman Warner, And Ranking Member Schiff
May 24 2018
Washington, D.C. –U.S. Senate Democratic Leader Chuck Schumer (D-NY), House Democratic Leader Nancy Pelosi (D-CA), Vice Chairman Mark Warner (D-VA), and Ranking Member Adam Schiff (D-CA) released the following joint statement regarding their Gang of Eight briefing with the Justice Department:
“Today’s Gang of Eight briefing was conducted to ensure protection of sources and methods.
“Nothing we heard today has changed our view that there is no evidence to support any allegation that the FBI or any intelligence agency placed a ‘spy’ in the Trump Campaign, or otherwise failed to follow appropriate procedures and protocols.”
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).
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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, released the following statement:
“The Gang of Eight exists in custom and in law to ensure that Congress can oversee intelligence matters without putting sensitive sources and methods at risk. If there is a clear and compelling need to brief Congress on sensitive intelligence matters, it should be handled through the Gang of Eight. The White House’s plan to provide a separate briefing for their political allies demonstrates that their interest is not in informing Congress, but in undermining an ongoing criminal investigation.
“If they insist upon carrying out this farce, the White House and its Republican allies in the House will do permanent, longstanding damage to the practice of bipartisan congressional oversight of intelligence. They will also be sending a terrible message to anyone who works in or with our nation’s intelligence community that the White House will always prioritize partisan politics over protecting the people who help keep this country safe.”
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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).
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WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Jerry Moran (R-KS), Co-Chairs of the Senate Aerospace Caucus, introduced the Aeronautics Innovation Act to help boost innovation, research and development in the aeronautics industry. The bill would provide a five-year funding commitment to advance innovation and supplement research in the field.
In 2016, the U.S. aerospace and defense industry produced more than 2.4 million jobs and generated more than $872 billion in revenue. However, without the proper strategy and investment, the U.S. risks falling behind other industrialized nations in developing and advancing the next generation of aircraft. Forecasts estimate that the world’s demand for passenger aircraft fleet above 100 seats will double over the next 20 years, generating new plane orders between 35,000 and 40,000 worth more than $5 trillion by 2035.
“In order for the U.S. to boost its competitive edge in aeronautics, Congress must enact policies that invest in long-term research and development,” said Sen. Warner. “With countries across the globe looking to profit from record demand in the coming years for commercial aircraft, competition is fierce to lead the way in developing next-generation technology. This bill lays out a blueprint for how the U.S. can lead the world in a new age of manufacturing, where we can build the safest, quietest, most-fuel efficient and environmentally friendly planes available. Virginia is home to a thriving aerospace industry with leading federal facilities such as NASA Langley, and this bill will continue to support the nation’s next-generation capabilities in this important industry.”
“The future of our aerospace industry depends on our investment in research, testing and manufacturing,” said Sen. Moran. “Kansas has demonstrated the significant impact a commitment to forward-thinking can have, and continues to play a prominent role in the national aerospace industry. Across the country, the industry is poised to make groundbreaking discoveries, perfect new technology and build better and more efficient aircraft. The investment that can be made by passing this legislation will make certain that our successes can continue into the next generation.”
“We applaud Senators Warner and Moran, the Senate Aerospace Caucus Co-Chairs, for championing the Aeronautics Innovation Act, which will provide continuity and budget stability for aeronautics research. American industry partners are the leaders of innovation and need to maintain our competitive edge. If enacted, this legislation will boost our economy and protect our national security, ensuring American technological superiority in air and space,” said Eric Fanning, President and Chief Executive Officer, Aerospace Industries Association.
“The National Institute of Aerospace (NIA) is excited to support this important legislative initiative, which will ensure continued U.S. leadership in aeronautics amid increased worldwide competition and investments by other governments. Aeronautics is a critical industry for our economy and national defense and represents a significant portion of our nation’s exports. The Aeronautics Innovation Act will not only increase our investments in aeronautics research but will also re-focus them on critical innovative growth areas such as: unmanned aerial systems, autonomy, urban air mobility, composite materials, as well as flight test vehicles to demonstrate these technologies so U.S. companies can then take advantage of them,” said Dr. Douglas O. Stanley, President and Executive Director, National Institute of Aerospace.
“The Hampton Roads Military and Federal Facilities Alliance (HRMFFA) writes in strong support of the Aeronautics Innovation Act. We encourage your colleagues to co-sponsor this necessary legislation to help increase economic growth, sustain national security and maintain America’s leadership in science and technology,” said Craig R. Quigley, Rear Admiral, U.S. Navy (Ret.), Hampton Roads Military and Federal Facilities Alliance
“Through our involvement in NASA’s Unmanned Traffic Management and UAS in the National Airspace System research programs, we’ve seen firsthand the value of NASA’s leadership in enabling the burgeoning UAS industry to move from innovation towards successful integration, and the tremendous dividends of strong public-private partnerships in this field. This bill helps ensure the continuation of the many NASA-led efforts that are rapidly advancing UAS integration––fueling growth in the UAS industry and supporting U.S. leadership in this critical and expanding sector,” said Mark Blanks, Director, Virginia Tech Mid-Atlantic Aviation Partnership.
“I fully support The Aeronautics Innovation Act being introduced by Senators Warner and Moran, including the aeronautics funding augmentation it proposes. The future challenges posed by demonstrating sustained hypersonic flight, developing a viable commercial supersonic transport system and achieving routine autonomous aerial systems operations will benefit greatly from the knowledge base and technology developed by NASA Aeronautics. An increased NASA Aeronautics funding stream will sustain NASA technology development and assure that NASA expertise and facilities will be available to the industry and military for future national systems development programs,” said Delma C. Freeman, Jr., Chairman, NASA Aerospace Support Team, Retired Director NASA Langley Research Center.
“As a key element of our overall mission in advocating for aerospace advancement within the Commonwealth of Virginia, the Virginia AeroSpace Business Association (VASBA) is in full support of NASA’s New Aviation Horizons (NAH) Initiative which includes developing new X-planes that will be cleaner, faster and quieter. NASA has successfully demonstrated the value of X-planes in advancing flight technologies and aerospace engineering, and we strongly believe the NAH initiative will place Virginia at the forefront of the next generation of aircraft and air traffic management systems using advanced technologies and configurations. We believe that the NAH initiative and complementary investments efforts such as Senator Warner’s Aeronautics Innovation Act will offer tremendous opportunities to industry and universities throughout Virginia,” said Robert P. Fleishauer, Ph.D, PMP, President, Virginia Aerospace Business Association.
The Senate bill is also endorsed by the Association for Unmanned Vehicle Systems International (AUVSI), the Small UAV Coalition, the General Aviation Manufacturers Association (GAMA), Unmanned Systems Association of Virginia (USAV), and the National Institute for Aviation Research.
Key provisions of the Aeronautics Innovation Act include:
- Authorizing robust funding levels for NASA’s Aeronautics directorate over the next five years: $790 million in FY 2019, $930 million in FY 2020, $974 million in FY 2021, $996 million in FY 2022, and $1.03 billion in FY 2023.
- Ensuring sustained Congressional support for the NASA Aeronautics Research Mission Directorate’s (ARMD) Strategic Implementation Plan, a forward looking strategy that supports the future needs of aviation communities.
- Affirming NASA’s key role in the long-term research in transformative aeronautics technologies.
- Establishing a national policy for aeronautics research that will maintain U.S. superiority in air capabilities and aviation industrial leadership.
- Establishing a new series of experimental plane, or “X-Plane,” programs rooted in ARMD’s strategic plan that will restore NASA’s capacity to see legacy priority initiatives through to completion and achieve national economic and security objectives.
- Directing NASA’s continuing support of unmanned aircraft system development, particularly unmanned traffic management and on-demand mobility technologies.
- Creating the 21st Century Aeronautics Research Capabilities Initiative, a program designed to modernize NASA’s aeronautics facilities, such as wind tunnels and modeling & simulation capabilities.
This is the companion bill to bipartisan legislation introduced by Reps. Steve Knight (R-CA), Marcy Kaptur (D-OH), Bobby Scott (D-VA) and others in the House of Representatives.
The full text of the Senate bill can be found here.
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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.
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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Banking Committee, released the following statement after the House passed S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, sending the bill to the President’s desk:
“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 sending this sensible, bipartisan bill to the President’s desk for signature.”
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).
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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
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Warner & Kaine Announce More Than $43 Million for Housing & Infrastructure Projects Across Virginia
May 22 2018
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:
Virginia Housing Authority Recipient |
City |
Amount |
Portsmouth Redev. & Housing Authority |
PORTSMOUTH |
$2,184,978.00 |
Bristol Redevelopment & Housing Authority |
BRISTOL |
$803,731.00 |
Newport News Redev. & Housing Authority |
NEWPORT NEWS |
$4,021,967.00 |
Alexandria Redev. & Housing Authority |
ALEXANDRIA |
$1,957,491.00 |
Hopewell Redevelopment & Housing Authority |
HOPEWELL |
$800,481.00 |
Norfolk Redevelopment & Housing Authority |
NORFOLK |
$8,576,413.00 |
Richmond Redev. & Housing Authority |
RICHMOND |
$10,911,250.00 |
Danville Redevelopment & Housing Authority |
DANVILLE |
$1,056,943.00 |
Roanoke Redevelopment & Housing Authority |
ROANOKE |
$3,265,133.00 |
Chesapeake Redev. & Housing Authority |
CHESAPEAKE |
$1,037,894.00 |
Lynchburg Redev. & Housing Authority |
LYNCHBURG |
$820,492.00 |
Norton Redevelopment & Housing Authority |
NORTON |
$460,027.00 |
Charlottesville Redev. & Housing Authority |
CHARLOTTESVILLE |
$832,974.00 |
Hampton Redevelopment & Housing Authority |
HAMPTON |
$1,306,266.00 |
Franklin Redev. & Housing Authority |
FRANKLIN |
$147,828.00 |
Petersburg Redev. & Housing Authority |
PETERSBURG |
$1,025,085.00 |
Wytheville Redev. & Housing Authority |
WYTHEVILLE |
$462,256.00 |
Waynesboro Redev. & Housing Authority |
WAYNESBORO |
$390,498.00 |
Wise County Redev. & Housing Authority |
COEBURN |
$409,332.00 |
Suffolk Redev. & Housing Authority |
SUFFOLK |
$1,024,358.00 |
Williamsburg Redev. & Housing Authority |
WILLIAMSBURG |
$258,697.00 |
Cumberland Plateau Reg. Housing Authority |
LEBANANON |
$548,009.00 |
Marion Redevelopment & Housing Authority |
MARION |
$536,689.00 |
Scott County Redev. & Housing Authority |
DUFFIELD |
$210,200.00 |
Abingdon Redev. & Housing Authority |
ABINGDON |
$63,093.00 |
Lee County Redev. & Housing Authority |
JONESVILLE |
$134,668.00 |
###
WASHINGTON — In an effort to curb the nation’s opioid epidemic, U.S. Sen. Mark R. Warner (D-VA) today introduced four bipartisan bills aimed at making it easier for people to access substance use disorder treatment using telehealth services.
“One of the main drivers of the opioid crisis is that too many people lack access to quality substance use disorder treatment,” said Sen. Warner. “Expanding access to telehealth services could not only save lives but equip rural and underserved communities with better tools to fight this epidemic.”
Telehealth is the provision of health care services via telecommunications technologies, such as live video interactions, that make it easier for healthcare providers to treat patients no matter where they live. However, in order for a Medicare patient to receive reimbursement for substance use disorder treatment, individuals are obligated to receive care from a Medicare approved location known as an originating site. Oftentimes individuals who need treatment live out of reach from the originating site or those centers may be filled at capacity. That is why Sen. Warner, along with Sens. John Thune (R-SD), Ben Cardin (D-MD) and John Cornyn (R-TX), introduced the Expanding Telehealth Response to Ensure Addiction Treatment (eTREAT) Act to reduce the existing barriers to expand telehealth services for substance use disorder treatment. The bill text is available here.
Virginia is a national leader in telemedicine. The University of Virginia Center for Telehealth was launched in 1994 and has since grown into a national model for the health industry. Since then, UVA and its network of 152 telemedicine partners have enabled more than 51,000 patient encounters across more than 60 specialties, saving Virginians roughly 16 million miles of travel. While the center was selected as one of 14 regional telehealth resource centers by the federal government, it still faces barriers to delivering care because outdated federal laws restricts Medicare’s coverage of telehealth services.
"The University of Virginia Health System and our Center for Telehealth commend Senator Warner for his leadership in addressing barriers that prevent patients from getting needed substance abuse treatment in a timely way by eliminating burdensome geographic originating site restrictions in Medicare. The Expanding Telehealth Response to Ensure Addiction Treatment (eTREAT) Act of 2018 will allow telehealth-- demonstrated to be an effective tool to deliver health care-- to provide such evaluation and treatment services to greater numbers of patients nationwide,” said Dr. Karen Rheuban, Director of the UVA Center for Telehealth.
In addition, Sen. Warner introduced three other bills aimed at expanding the use of telehealth services for Medicaid patients receiving substance use disorder treatment.
The Medicaid Substance Use Disorder Treatment via Telehealth Act will make clear how federal Medicaid funds can be used for substance use disorder treatment through telehealth services. Specifically, the bill will require the Secretary of Health and Human Services (HHS) to issue guidance on the reimbursement options available to state Medicaid services and treatment of substance use disorder through telehealth. The bill text is available here.
In addition, the Telehealth for Children’s Access to Services and Treatment (TeleCAST) Act will help ensure children suffering from substance use disorder receive the assistance they need through telehealth services. The bill will require the Government Accountability Office (GAO) to evaluate the population of children who utilize Medicaid treatment for substance use disorder. In addition, the bill requires that the Centers for Medicare and Medicaid Services (CMS) produce a report on reducing barriers to using telehealth services and remote patient monitoring for pediatric populations under Medicaid. The bill text is available here.
In 2003, then-Gov. Warner expanded Medicaid coverage for telemedicine statewide, including evaluation and management visits, a range of individual psychotherapies, the full range of consultations, and some clinical services, including in cardiology and obstetrics. Coverage was also expanded to include non-physician providers. Among other benefits, the telehealth expansion allowed individuals in medically underserved and remote areas of Virginia to access quality specialty care that isn’t always available at home.
The final bill, the Opioid Addiction Treatment Programs Enhancement Act, will improve data collection on substance use disorder among Medicaid recipients. The bill will require the Secretary of Health and Human Services to publish comprehensive data on the CMS website regarding the prevalence of substance use disorder within the Medicaid beneficiary population and the services provided for treatment of substance use disorders under Medicaid. By receiving the most up-to-date information, states will be better equipped to combat the growing opioid epidemic by targeting their efforts in communities that need it the most. The bill text is available here.
In the Senate, Sen. Warner has been working on ways to combat the opioid crisis that has had a devastating effect for communities in rural Southwest Virginia. In March, Sen. Warner voted in favor of the omnibus bill that provided a total of $3.3 billion in increased funding to combat the opioid crisis, including an increase of $2.8 billion in treatment, prevention and research for programs under the Department of Health and Human Services (HHS) to help communities across Virginia and the nation fight against the opioid epidemic. He has also passed into law bipartisan legislation to expand the use of federal telehealth services.
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Vice Chairman Warner on Protecting Sources
May 18 2018
WASHINGTON — U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, issued the following statement on attempts to undermine the Special Counsel’s investigation:
“The first thing any new member of the Intelligence Committee learns is the critical importance of protecting sources and methods. Publicly outing a source risks not only their life, but the lives of every American, because when sources are burned it makes it that much harder for every part of the intelligence community to gather intelligence on those who wish to do us harm.
“It would be at best irresponsible, and at worst potentially illegal, for members of Congress to use their positions to learn the identity of an FBI source for the purpose of undermining the ongoing investigation into Russian interference in our election. Anyone who is entrusted with our nation’s highest secrets should act with the gravity and seriousness of purpose that knowledge deserves.”
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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,
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WASHINGTON, D.C. – U.S. Senators Mark Warner and Tim Kaine joined a bipartisan letter calling on Federal Communications Commission (FCC) Chairman Ajit Pai to support long-term funding that would make broadband and voice services more accessible and affordable in rural communities. In the letter, the Senators thank the FCC for its work to support rural broadband and request that it prevent upcoming funding cuts to smaller operators that deliver broadband to the country’s most rural communities, which would otherwise go into effect on July 1.
“These recurring budget shortfalls result in lower speeds, more unserved locations, and higher prices for rural consumers and businesses,” the Senators said. “We share your goal of eliminating the digital divide and look forward to working with you to maintain accessible, affordable broadband for rural American consumers and businesses.”
The FCC fixed the budget shortfall for the Universal Service Fund’s (USF) High-Cost program for the current Fiscal Year, but has not addressed long term funding for the program. The USF program helps to ensure that consumers in rural areas pay comparable rates to those in urban areas by helping rural carriers cover some of their costs. The Senators make the case that funding the program encourages businesses to invest in broadband networks in regions of the country where service is needed, but where deploying broadband is difficult and costly.
Warner and Kaine have been strong supporters of expanding broadband to rural communities in Virginia as Governors and Senators. Last year, Warner and Kaine joined a bipartisan group of colleagues to urge President Trump to include broadband in an infrastructure initiative. In October, Warner and Kainepraised a Senate Democratic proposal to invest $40 billion to build broadband infrastructure necessary to connect over 34 million Americans to high-speed internet. In November, Warner and Kaine announced $6 million in federal funding to construct broadband infrastructure in Buchanan and Scott Counties.
The full text of the Senators’ letter to Chairman Pai is available here and below:
May 15, 2018
The Honorable Ajit Pai
Chairman
Federal Communications Commission
445 12th Street, S.W.
Washington, DC 20554
Dear Chairman Pai:
We write to express our strong support and sincere gratitude for the recent Order addressing budget shortfalls in the Universal Service Fund’s (USF) High-Cost program. The Order is an essential, immediate step in the right direction, and we now encourage the Federal Communications Commission (FCC) to continue down this path by acting quickly on the notice of proposed rulemaking to provide long-term, predictable support. Such additional steps are necessary to ensure rural Americans have access to high quality voice and broadband services.
The FCC’s recent Order approving an infusion of funds into the USF is greatly welcomed, and will provide needed support for small, rural carriers that rely on the High-Cost USF program. Despite this, persistent limitations on resources can affect the ability of smaller broadband providers to deliver services in our country’s most rural communities. The FCC’s cost model for smaller operators electing model-based USF support is not yet funded at the designed levels, and carriers not receiving model-based support will once again face significant funding cuts when the program’s new fiscal year takes effect on July 1, 2018. These recurring budget shortfalls result in lower speeds, more unserved locations, and higher prices for rural consumers and businesses.
Congress has expressed consistent, bipartisan support for addressing shortfalls in the USF program. In April 2017, 58 Senators called on the FCC to provide adequate resources for broadband delivery services to rural consumers in areas that are the hardest and costliest to serve. In May 2017, 102 Representatives wrote to the FCC, expressing similar concerns about the impacts of insufficient USF resources on rural consumers.
We commend the FCC’s actions thus far to address and modernize USF support. Taking action on the notice of proposed rulemaking and establishing lasting solutions that allow the reformed High-Cost mechanism to work as designed would enable many smaller operators to offer high quality, affordable broadband to consumers across rural America. It is important to consider any modifications needed to meet the program’s objectives of ensuring consistent network build-out and strengthening ongoing service, for locations otherwise unserved, in our nation’s high-cost rural areas.
Thank you for the actions you have undertaken thus far to support the USF and for considering this request. We share your goal of eliminating the digital divide and look forward to working with you to maintain accessible, affordable broadband for rural American consumers and businesses.
Sincerely,
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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,
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