In just the first six months of the 111th Congress, we have worked hand in hand with the Obama Administration to advance a bold agenda that rebuilds and reinvests in America. And so far, the news is good: Congress has had one of the most productive starts in years and Americans are feeling more confident about the direction in which our country is heading.
Despite the many troubles inherited from the Bush Administration – a severe economic recession, skyrocketing costs for basic needs, cynicism about government, loss of respect around the world, and wars in Iraq and Afghanistan – Americans believe in our nation’s ability to solve our challenges and get moving in the right direction again. Senate Democrats couldn’t agree more.
Already, the 111th Congress has enacted laws to:
· Stabilize the economy and support 3.5 million jobs
· Protect workers from pay discrimination
· Provide health care for children in need
· Combat mortgage and financial fraud
· Strengthen the housing market and prevent unnecessary foreclosures
· Reform military procurement to protect taxpayer dollars
· Invest in health care, energy, and education
· Protect the American wilderness
· Expand national service
· Strengthen oversight of TARP
· Protect consumers from abusive credit card practices
· Provide for additional resources for troops and veterans and flu preparedness
Moreover, with the passage of the Budget Resolution, we have laid the ground work for health care reform, middle-class tax relief, educational and workforce investments, and energy independence – all essential components of a healthy and strong economy.
Sadly, Senate Republican obstructionism prevented passage of the Travel Promotion Act, which would have created tens of thousands of jobs, benefited every state, and, according to the Congressional Budget Office, reduced the deficit by more than $400 million.
As we move forward in the 111th Congress, the American people can count on Senate Democrats to continue to work to advance their priorities – beginning with reforming the nation’s health care system, move the economy from recession to recovery, and get our nation back on the path to prosperity.
Democrats are Working to Strengthen the Economy and Reinvest in America
Senate Democrats passed an economic recovery package that will get the American economy working again. Over the last eight years, life for millions of American families has grown less affordable and less secure. Americans have suffered from lower wages, fewer jobs, declining home values, foreclosures, and skyrocketing costs for basic necessities like gas, health care, and college tuition. Years of misguided fiscal policies and irresponsible regulatory failures have contributed to a financial meltdown that is crippling the national and global economy and threatening the American Dream for people throughout the country. Never before has the need for a strong economic recovery package been as urgent or as clear.
On February 13, 2009, by a supermajority vote of 60, the Senatesent the American Recovery and Reinvestment Act of 2009 (H.R.1) to President Obama for signature. This urgently-needed legislation will create new jobs and save those that may be lost; cut taxes for the middle class; and invest in America’s future. This legislation will also provide transparency and accountability to guarantee that all taxpayer money is invested responsibly.
Specifically, the economic recovery legislation will create and maintain jobs through targeted funding of infrastructure, renewable energy and other job-intensive projects, increased nutrition assistance, and broad-based tax relief. The legislation provides incentives for businesses to create and retain jobs, particularly in the green energy sector; aid to states in fiscal crisis; help with health care for workers and struggling families; job-creating investments in health care; and expanded unemployment benefits.
The bill was signed into law on February 17 (P.L. 111-5).
ADDITIONAL RESOURCES: DPC released several documents related to the American Recovery and Reinvestment Act of 2009, including The Recovery Act: A Report on Our Path to Progress; The Recovery Act: A Report on the Path to Progress in the States (State-by-State Fact Sheets); Energy, Environmental, and Consumer Benefits of the American Recovery and Reinvestment Act; Making Work Pay: Relief For America’s Working Families (State-by-State Fact Sheets); The American Recovery and Reinvestment Act of 2009: Creating Jobs, Investing in Our Country’s Future, and Cutting Taxes–Final (State-by-State Fact Sheets); Democrats are Investing in America’s Future: Education; Democrats are Investing in America’s Future: Health Care; American Recovery and Reinvestment Act of 2009 Implementation and Accountability Resources; and Democrats are Providing Urgently Needed Tax Relief for Middle-Class Families;The American Recovery and Reinvestment Act of 2009 Takes Steps to Stabilize the Housing Market.
Congress passed legislation to stabilize the housing market for homeowners, renters, and lenders. As Democrats work to get the economy working again by making long-term investments, creating jobs, providing middle-class tax relief, we have not forgotten the origin of the current recession: the crash of the home mortgage market.
According to RealtyTrac, more than 2.3 million U.S. properties faced foreclosure in 2008, an 81 percent increase from 2007. This was added to the 1.3 million properties that faced foreclosure in 2007, a 75 percent increase from 2006. It is estimated that 1.2 million of the foreclosures in 2008 were on residential properties. And while Democrats believe we can lower this number through aggressive homeowner assistance programs, early forecasts project that overall foreclosures could rise by 2.4 million in 2009 and by 8 million (1 in 9 households) over the next five years as adjustable rate loans continue to adjust higher and Americans grapple with job loss and rising unemployment.
Moreover, while the result of years of abuse by the mortgage lending industry, excessive risk taking by investors, lax regulation under the Bush Administration, lack of affordable housing, and poor choices by some homeowners, the housing crisis is a concern for every American. It is estimated that by the end of 2009, more than 40 million homeowners will have experienced a decline in their home values due to surrounding foreclosures, at a total cost of $325 billion. Cities and towns across America have experienced business closings, increased crime, increased costs, and an undermined tax base due to the inability of homeowners to make mortgage payments and the eventual abandonment of homes in their neighborhoods. Thus, stabilizing the housing market is not an option; it must be a cornerstone of any plan for economic recovery.
Building upon legislation passed in the 110th Congress, the Omnibus Appropriations Act, 2009, the American Recovery and Reinvestment Act of 2009, and President Obama’s “Making Home Affordable" program, on March 19, 2009, the 111th Congress passed the Helping Families Save Their Homes Act (S.896) to prevent unnecessary foreclosures, improve access to affordable home loans, increase the availability of credit, protect renters, and prevent homelessness. President Obama signed this legislation into law on May 20, 2009 (P.L. 111-22).
The new law will:
· Encourage participation in the HOPE for Homeowners program, including by offering new incentives for lenders to negotiate loan modifications with borrowers at risk of foreclosure the program and reducing fees for homeowners and lenders that have previously discouraged them from participating;
· Give FHA and USDA’s Rural Housing Service (RHS) the flexibility needed to modify loans consistent with the Obama Administration’s loan modification program;
· Protect lenders from frivolous lawsuits when they make loan modifications consistent with the President’s program or done through the Hope for Homeowners program;
· Increase funding for foreclosure prevention including counseling, additional fair housing employees, and education programs to warn American about foreclosure scams;
· Strengthen tools to ensure that predatory lenders cannot act as lenders or servicers in the FHA programs’;
· Establish the right of a homeowner to know who owns their mortgage;
· Provide renters who live in foreclosed properties with at least a 90-day notice for eviction;
· Protect the bank deposits and savings of consumers with a four-year extension of the increase in deposit insurance to $250,000;
· Increase the borrowing authority of the Federal Deposit Insurance Corporation (FDIC) to reduce the financial burden on small community banks;
· Provide new resources to respond to the nation’s homelessness crisis and prevent additional homelessness; and
· Expand accountability of financial rescue funds.
ADDITIONAL RESOURCES: DPC released a related Fact Sheet entitled, Democrats are Making Urgently Needed Investments in Housing and Community Development.
Congressional Democrats approved a fiscally-responsible budget that addresses the economic crisis that we inherited and lays a new foundation for our nation’s economy. On April 29, the Senate approved the Conference Report to the Fiscal Year 2010 Budget Resolution (S.Con.Res.13). This budget addresses the fiscal and economic crises that we have inherited and returns the country to a sound fiscal course by cutting the federal budget deficit in half by 2012 and by two-thirds by 2014 – bringing the deficit down to three percent of GDP. The Democratic budget:
· Preserves major priorities in President Obama’s budget proposal with strategic investments in energy, education, and health care – investments needed to restore our crumbling economy and put the country in a position to remain globally competitive. The budget:
o Promotes energy independence, building on the energy initiatives in the economic recovery package (P.L. 111-5) with investments in energy efficiency and clean energy;
o Makes investments in education and training programs that will help our economic growth and build a highly-skilled workforce to compete in the global marketplace; and
o Provides for affordable health care by including a deficit-neutral reserve fund for a major health reform initiatives;
· Provides tax relief for the Middle Class, with $764 billion in tax cuts for individuals and families over the next five years. These cuts include an extension of 2001 and 2003 income tax directed at individuals and families with incomes under $250,000; and allows for extension of the Making Work Pay tax cut for 95 percent of American workers; and
· Supports our troops and accounts for war costs, matching President Obama’s core defense budget and the President’s request for additional war costs. The budget also accurately represents costs like the wars in Iraq and Afghanistan.
ADDITIONAL RESOURCES: DPC released several documents related to 2010 Budget Resolution: The Democratic Budget Invests in America’s Future and Focuses on Middle-Class Families; Democrats are Investing in America’s Future: Education; Democrats are Investing in America’s Future: Health Care; Democrats are Providing Urgently Needed Tax Relief for Middle-Class Families; and Democrats are Making Urgently Needed Investments in Housing and Community Development. See also the Senate Budget Committee.
Congress funded critical federal government programs for Fiscal Year 2009.
On March 11, 2009, theOmnibus Appropriations Act, 2009 (H.R.1105) was presented to President Obama for signature into law (P.L. 111-8). House and Senate Democrats were able to complete important work blocked by Republicans last year to provide the resources, guidance, and new initiatives for federal government programs in Fiscal Year 2009, at a time when they are so desperately needed. This appropriations measure contained nine bills that are essential to keeping the federal government working to enhance the health, safety, and economic security of the American people. The Omnibus includes critical commitments to:
Ensure our economic security with investments in:
· Job-creating highway projects through the Department of Transportation;
· Reemployment and retraining services to millions of unemployed and otherwise vulnerable Americans through the Department of Labor;
· Help for struggling homeowners through the Federal Housing Administration, Housing and Counseling Assistanceprogram, and the Neighborhood Reinvestment Corporation;
· Community and economic development grants to help communities weather and recover from the current economic storm though the Department of Housing and Urban Development;
· Increased investments in more energy efficient vehicles and buildings as well as solar, wind, geothermal, and biomass energy sources through the Department of Energy; and
· Vigorous enforcement of securities laws to help bolster the integrity of the financial markets through the Securities and Exchange Commission.
Ensure educational excellence and competition in the global economy with investments in:
· The Pell Grant program, which helps seven million low- and middle-income families pay for college and vocational training through the Department of Education. The Omnibus provides $17.3 billion for the Pell Grant program, an increase of $3.1 billion above 2008, with a $5,350 maximum award amount. These funds will assist seven million students with the costs of higher education and will help 1.4 million students attend school with $1.9 billion in funding for federal supplemental educational opportunity grants, federal work study, Perkins Loans, and the Leveraging Educational Assistance Partnership program;
· Assistance for Students with Disabilities, providing $11.5 billion for the Individuals with Disabilities Education Act (IDEA), which helps ensure that all children with disabilities have access to a free, appropriate public education;
· Grants for disadvantaged students, with $14.5 billion, a $594 million increase, for Title I of the Elementary and Secondary Education Act, which provides resources to local school districts to help disadvantaged students succeed academically. The Omnibus also provides $546 million, an increase of $54 million, for school improvement grants to help turn around struggling schools;
· Head Start, a highly-successful federal-to-local grant program established in 1965, which provides early childhood education and services, including health, nutrition, and social and behavioral development for low-income preschool children and their families. The Omnibus provides $7.1 billion for this proven program, an increase of $235 million over 2008, to ensure that 900,000 low-income children have access to high quality preschool services; and
· Afterschool programs, providing $1.1 billion for 21st Century Community Learning Centers to help ensure students have a safe and supervised environment before the school day begins and after it ends. This funding will serve 1.7 million children.
Ensure our health with investments in:
- Lifesaving research into diseases such as Alzheimer’s, cancer, and diabetes through the National Institutes of Health (NIH). The Omnibus provides $30.3 billion,$938 million above Fiscal Year 2008, to the 27 Institutes and Centers at the NIH to fund research into diseases such as cancer, Alzheimer’s, and diabetes;
- Health care services to nearly 470,000 uninsured Americans through Community Health Centers. The Omnibus provides $2.2 billion for Community Health Centers, including migrant health center, and health care centers for the homeless;
- Health Promotion Programs at the Centers for Disease Control and Prevention (CDC). The Omnibus provides $6.7 billion for public health programs that promote health behaviors, prevent disease, investigate health problems and prepare for emerging health threats;
- High Risk Insurance Pools to provide affordable health coverage though state-sponsored health insurance plans to those denied coverage, usually because of pre-existing medical conditions. The Omnibus includes $75 million to states for these plans, which insure nearly 200,000 individuals;
- Outreach to Seniors Eligible for Medicare, by providing $45 million, a $6 million increase above 2008, to help seniors, including the 40 million Americans already enrolled in the program, understand which Medicare benefits are available to them.
- Small, rural hospitals and health care networks for more than 775,000 rural residents in underserved communities through the Department of Health and Human Services. The Omnibus provides $289 million to support more than 1,200 small hospitals in rural, underserved communities;
- Training for health professionals, through a $842 million investment in Health Professions Training programs. This funding will help train physicians, nurses, and other medical personnel, to help improve access to critical health care services;
- Cancer screening, with a new $25 million national program to provide colorectal cancer screening and diagnostic follow-up care. The Centers for Disease Control (CDC) estimates that if every American over age 50 were regularly screened, 60 percent of the 55,000 annual deaths from colorectal cancer could be prevented; and
- Combating autism by providing full funding of the Combating Autism Act with $63.4 million for prevention of autism and support for families affected by autism and related disorders.
Ensure our safety with investments in:
- New reforms in place to make children’s products safer through the Consumer Product Safety Commission;
- Food and medical product safety inspections through the Food and Drug Administration.;
- Aviation safety and air traffic organization through the Federal Aviation Administration;
- Workplace safety standard enhancements and enforcement through the Occupational Safety and Health Administration;
- Quarantine stations at ports of entry around the country through the Centers for Disease Control and Prevention;
- Agents to ferret out drug producers and traffickers through the Drug Enforcement Agency; and
- Intelligence analysts and other professionals fighting crime and terrorism in the United States through the Federal Bureau of Investigation.
Ensure global health and our national security with investments in:
· Critical diplomatic operations, including funding 500 additional positions to fill vacancies in the Foreign and Civil Service at the Department of State;
· Worldwide embassy security protection to ensure that U.S. personnel are safe and secure;
· Lifesaving initiatives for international HIV/AIDS prevention, treatment, and care as well as global programs to fight malaria and tuberculosis, and improve maternal and child health;
· Humanitarian assistance to help displaced people around the world, avert famines, and provide critical assistance during natural disasters; and
· Peacekeeping activities around the world, including in Sudan, Liberia, the Democratic Republic of the Congo, Kosovo, and Lebanon.
ADDITIONAL RESOURCES: DPC released several documents on the Omnibus Appropriations Act, 2009: H.R.1105, the Omnibus Appropriations Act of 2009; Democrats Investing in America’s Priorities: Renewable Energy, Energy Efficiency, Environmental Protection, Wildlife Conservation, and Green Jobs; Democrats Investing in America’s Priorities: Strengthening Our Workforce; Democrats Investing in America’s Priorities: Safe and Affordable Housing; and Democrats Investing in America’s Priorities: Diplomacy and Foreign Assistance.
See also the Senate Committee on Appropriations.
Democrats are Working to Support Our Troops and Keep America Safe
Senate Democrats passed a supplemental appropriations bill to meet critical national security needs. On June 18, 2009, the Senate passed the conference report to H.R.2346, the Supplemental Appropriations Act, 2009, with a bipartisan vote of 91-5. The report would provide a total of $105.9 billion for Fiscal Year 2009 to meet the needs of our troops; fund ongoing operations in Iraq, Afghanistan and Pakistan; address threats to the stability in the international monetary system; enhance security along the Southwest border; and bolster pandemic flu preparedness and response. The legislation was signed by President Obama on June 24 (P.L. 111-32). Specifically, the new law will provide funding to:
- Strengthen our military. The law includes $79.9 billion in funding for Department of Defense (DoD) operations to ensure that our deployed military forces are provided the most effective weaponry, communications, and protective equipment on the battlefield and to ensure that our returning troops, veterans and military families are provided first-rate care and services. It includes an additional $2.8 billion to cover identified shortfalls in military personnel accounts, $4 billion (for a total of $25 billion) for equipment used by our troops in Iraq and Afghanistan, $240 million (for a total of $1.8 billion) for defense health programs and initiatives to support military families, and $431 million (for a total of $2.7 billion) for military construction projects.
- Begin to end the war in Iraq and transition responsibility to the Iraqis. The law supports the President’s strategy to reduce the U.S. commitment in Iraq; focus on training and counterterrorism missions; and promote the transition of security and governance responsibility to Iraqis. It includes $1 billion for the Iraqi Security Force Fund and allocates $958 million in funding in support of diplomatic operations, economic development programs, and governance initiatives vital to fostering sustainable security and political reconciliation.
- Support a comprehensive strategy for addressing terrorist threats in Afghanistan and Pakistan. The law provides funding to implement a regional strategy for Afghanistan and Pakistan that incorporates diplomacy, counterinsurgency training, economic development, civilian assistance and government capacity-building initiatives to promote long-term security and stability. It includes $3.6 billion to expand and improve capabilities of the Afghan security forces; $400 million to build the counterinsurgency capabilities of the Pakistani security forces; and $1.4 billion for Afghanistan and $2.4 billion for Pakistan for critical diplomatic, economic and civilian assistance programs.
- Bolster pandemic flu response. The law provides $7.7 billion in funding for pandemic flu response, including $1.5 billion in Fiscal Year 2009 appropriations and $5.8 billion in contingent emergency appropriations to expand detection efforts, supplement federal stockpiles, and develop, purchase, and administer vaccines.
- Mitigate grave threats to global economic stability. The law provides $5 billion (to a contingency fund) that will be leveraged, along with the contributions of other countries, to enable the International Monetary Fund (the Fund) to increase its lending capacity and respond to grave threats to global economic stability, particularly in developing countries severely impacted by the financial crisis. It also includes provisions to approve needed reforms to the Fund; provide a sound basis for the Fund to pay for its operations; to help ensure that Fund lending conditions do not undermine critical spending for social services in developing countries; and to provide for greater congressional oversight over the Fund.
- Address the growing violence along the U.S.-Mexico border. The law includes $420 million, $354 million above the requested amount, in support of the Government of Mexico’s efforts to combat organized crime and drug trafficking along the southwest border of the United States.
- Ensure oversight and accountability of U.S. efforts in Iraq, Afghanistan and Pakistan. The conference report provides $27.5 million, $20 million above the requested amount, in support of State Department, USAID, and the Special Inspector for Generals for Iraq and Afghanistan (SIGIR and SIGAR) to expand their oversight efforts.
- Provide vital humanitarian assistance, HIV/AIDs funding, and support for peacekeeping operations. The law includes $700 million for international food assistance, $390 million for refugee assistance, and $270 million for disaster assistance; $100 million for the Global Fund to fight AIDS, Tuberculosis and Malaria; and $721 million in support of United Nations peacekeeping operations.
Democrats are Working to Ensure a Healthy America
Congress strongly supported legislation to protect our children and the public from the harmful effects of tobacco use. Due to the commitment of Senate Democrats and more than ten years of hard work, legislation granting the Food and Drug Administration (FDA) the authority to regulate the manufacture, marketing, and sale of tobacco was signed into law by the President on June 22, 2009 (P.L. 111-31). The Senate approved the legislation (H.R.1256, as amended) on June 11, 2009.
Tobacco use in the United States is killing our citizens, costing us billions of dollars in health care costs, and reducing our economic productivity.
- More than 43 million Americans are addicted to cigarettes. Tobacco use kills more than 400,000 Americans each year, and an additional 50,000 non-smokers die prematurely each year due to exposure to secondhand smoke. Americans’ health suffers from tobacco use, with 8.6 million Americans currently suffering from a smoking-caused illness.
- Health care costs for these individuals are staggering, with $96 billion in total annual public and private health care expenditures attributable to smoking.
- Our national economy experiences approximately $98.6 billion each year in productivity losses due to cigarette smoking and exposure to tobacco smoke, making the total economic burden of smoking approximately $192 billion per year.
- Nearly 90 percent of smokers begin as children and are addicted by the time they become adults. The tobacco industry refers to our children as “replacement smokers,” and each day, more than 3,500 children try smoking for the first time, and more than 1,000 children become regular, daily smokers. The tobacco industry has no economic incentive to reduce smoking by children, because youth smoking generates approximately $2 billion in revenue for tobacco manufacturers annually, and these child smokers replace the adult smokers who are dying as a result of their addiction. Flavors, like fruit or candy, make cigarettes more attractive to children and easier to smoke.
Now that the Family Smoking Prevention and Tobacco Control Act has become law, the FDA has the authority to:
- Regulate tobacco products through a new chapter in the Federal Food, Drug, and Cosmetic Act (FFDCA).
- Restrict tobacco advertising to stop marketing practices that target children and mislead the public, and to regulate the sale, distribution, and advertising of cigarettes and smokeless tobacco “consistent with and to the full extent permitted by the First Amendment.”
- Prevent the sale of tobacco products to youth by limiting tobacco sales to face-to-face transactions, in which the age of the purchaser is verifiable, eliminating self-service displays and vending machine sales of tobacco, except in adult-only facilities.
- Require stronger warning labels for all tobacco packages and advertising, with regular updates to ensure a strong impact, and an unambiguous description of the health problems that may result from tobacco use.
- Prevent misrepresentation by tobacco manufacturers of the addictiveness of nicotine in their products.
- Remove hazardous ingredients to ensure that the inherent risk of using tobacco products is not unnecessarily increased, to help those who are addicted overcome their addiction, and to make tobacco products less toxic to those who are unable or unwilling to quit.
- Set standards for so-called “reduced risk” products by requiring manufacturers to submit the products for FDA analysis before making such a marketing claim.
- Ensure tobacco companies, not American taxpayers, bear the cost of regulation through a new user fee on tobacco manufacturers and importers, based on their market share.
Senate Democrats persisted for more than ten years to ensure that tobacco, one of the most dangerous products available in the United States, is subject to the same regulation as all other consumer products. This new law, supported by more than 1,000 public health, faith, and other organizations across the country, gives the FDA the legal authority necessary to reduce youth smoking, prevent the sale of tobacco to minors, help current smokers quit, reduce the toxicity of tobacco products, and stop the tobacco industry from misleading the public with their misleading claims about the dangers of using tobacco products.
ADDITIONAL RESOURCES: DPC released a legislative bulletin entitled, H.R.1256, the Family Smoking Prevention and Tobacco Control Act of 2009 (Senate Substitute) and a fact sheet entitled Senate Democrats Protect Our Children and the Public from the Harmful Effects of Tobacco Use.
Congress overwhelmingly approved critical legislation to renew and expand the Children’s Health Insurance Program (CHIP). For the past twelve years, CHIP has played a crucial role in helping to reduce the rate of uninsured children from lower-income families. The program was set to expire in March 2009. Despite overwhelming bipartisan support for similar legislation passed by the Senate and House in the 110th Congress, President Bush twice vetoed bills to expand the program. After two years of hard work by Democrats to improve and expand health care for children, in February, the 111th Congress passed and the President signed the Children’s Health Insurance Program Reauthorization Act of 2009 (S.275), abipartisan bill that authorizes $32.8 billion in new funding for CHIP to provide quality health care coverage for almost 11 million children. The legislation will allow 6.7 million children to continue to receive health care coverage and extend coverage to 4.1 million children who are currently uninsured. The program has been renewed through Fiscal Year 2013. This legislation provides a new option to states to remove the 5-year waiting period for legal immigrant children and pregnant women, providing those who qualify with immediate access to Medicaid and CHIP.
The CHIP legislation will also:
- Increase and target funding for states facing budget deficits;
- Improve state tools for outreach and enrollment;
- Provide bonus payments to states enrolling the lowest-income children;
- Improve the quality of health care for low-income children;
- Help reduce racial and ethnic disparities in coverage and quality;
- Prioritize children’s coverage in CHIP by moving childless adults out of CHIP and prohibiting additional adult coverage in CHIP;
- Improve access to critical benefits such as dental coverage;
- Reduce administrative barriers to enrollment, including the option for states to use an applicant’s Social Security Number (SSN) to confirm eligibility for Medicaid or CHIP;
- Improve access to private coverage options through new premium assistance rules; and
- Maintain state flexibility to set eligibility levels for the program based on the cost of living in each state.
On January 29, 2009, the Senate passed the legislationby a vote of 66 to 32. The bill (assigned H.R.2, but with the text of S.275) was agreed to in the House on February 4, 2009. The President signed this legislation into law on February 4, 2009 (P.L. 111-3).
ADDITIONAL RESOURCES: DPC released a Legislative Bulletin on S.275, the Children’s Health Insurance Program Reauthorization Act of 2009.
Democrats are Working to Protect American Consumers
Senate Democrats voted to protect millions of Americans from unfair, unjust, and unacceptable credit card industry practices. On May 19, 2009, the Senate approved the Credit Card Accountability Responsibility and Disclosure Act of 2009 (H.R.627, as amended) (the “CARD act”) by a vote of 90-5. This bipartisan legislation will stop credit card companies from misleading their customers with hidden charges and confusing terms. The legislation was signed into law on May 22, 2009 (P.L. 111-24). Specifically, the CARD Act will:
· Establish strong consumer protections by preventing unfair increases in interest rates and changes in terms, prohibiting exorbitant and unnecessary fees, requiring fairness in application and timing of card payments, and protecting the rights of financially-responsible credit card users;
· Enhance consumer disclosures by requiring disclosures related to payoff timing, late payment deadlines and penalties, card renewal terms, and requiring each credit issuer to post their credit card agreements;
· Protect young consumers targeted by aggressive and irresponsible credit card marketing offers;
· Strengthen oversight of credit card industry practices byrequiringcredit card issuers to post the credit card agreements on the Internet and provide those agreements to the Federal Reserve Board, requiring the Federal Reserve Board to review the consumer credit card market, including: terms of credit card agreements, practices of credit card issuers and the cost and availability of consumer credit, and increasing penalties for card companies that violate the Truth in Lending Act as it applies to credit card costumers;
· Protect recipients of gift cards by eliminating declining values and hidden fees in gift cards and requiring that gift cards have a five-year life span.
· Protect small businesses by requiring a study on the use of credit cards by small businesses and establishing a Small Business Information Security Task Force to address the information technology security needs of small businesses and help prevent the loss of credit card data; and
· Promote financial literacy by requiring comprehensive summary of existing financial literacy programs and development of strategic plan to improve financial literacy education.
By 2007, 73 percent of American families had a credit card, and 60 percent of those families carry a balance. The average balance on those cards was $7,300 – a 30 percent rise since 2004. (Federal Reserve, 2/2009) Today, Americans owe more than $950 billion in revolving credit card debt. (Consumers Union, accessed 5/7/2009) And, in spite of the fact that credit card delinquencies are rising, credit card companies have mailed 4.2 billion credit card solicitations in 2008, and have posted huge profits, many the majority of which come directly from interest payments. (Demos, 2008; Consumers Union, accessed 5/7/2009)
On top of all the financial difficulties American families are facing, credit card companies should not be allowed to abuse American consumers. The CARD Act will level the playing field and keep the rules consistent from beginning to end, saving families thousands of dollars a year. Democrats are committed to restoring confidence in our economy by looking out for consumers and keeping credit card companies honest.
Democrats are Working to Advance Justice and Enforce the Laws of the United States
Senate Democrats passed legislation to improve law enforcement’s ability to prosecute financial and mortgage fraud. After 9/11, the Bush Administration shifted resources and attention away from the investigation of financial fraud, leaving law enforcement under-manned and under-funded and criminal statutes inadequate to deal with modern financial fraud schemes at a time when corporate and mortgage fraud were on the rise due to lax regulation by the Administration and Republican Congress of the housing and banking industries.
As of a result, thousands of fraud allegations went unexamined and many instances of fraud went unchecked. More than 65,000 suspicious activity reports were filed alleging mortgage fraud in 2008, compared with nearly 4,700 in 2001, nearly 13 times as much. This fraud ultimately contributed to the global economic crisis that is threatening the financial health of our nation and the security of American families today. (Senate Judiciary Committee referencing the U.S. Department of Treasury’s Financial Crimes Enforcement Network, available here and here.)
On May 19, 2009, the Senate passed the Fraud Enforcement and Recovery Act of 2009 (S.386) to enhance, strengthen, and rebuild the government’s ability to investigate and prosecute the increasing instances of mortgage and corporate fraud. President Obama signed this legislation into law on May 20, 2009 (P.L. 111-21). Specifically, FERA will:
· Authorize more than $260 million per year in Fiscal Years 2010 and 2011 to hire hundreds of additional prosecutors, agents, and staff to conduct investigations and prosecutions of financial fraud at the Department of Justice, the FBI, the U.S. Postal Inspection Service, the U.S Secret Service, the Office of Inspector General for the Housing and Urban Development Department, the Securities Exchange Commission (SEC), and the Office of the Inspector General for the SEC;
· Improve and modernize fraud and money laundering statutes to strengthen prosecutors’ ability to combat fraud, including mortgage and securities fraud, by:
o Updating the definition of “financial institution” in federal fraud statutes to include mortgage lending businesses that are not directly regulated or insured by the federal government (these businesses account for nearly half of residential mortgages);
o Amending the major fraud statute to protect funds expended under the economic recovery package and the bank bailout;
o Strengthening the False Claims Act to reverse recent court decisions that have made it more difficult to recover funds and impose penalties for proven frauds; and
o Filling key statutory gaps to account for modern types of fraud and correct misinterpretations of the law in recent court decisions; and
· Establish a commission to investigate the origins of the economic crisis so that we can avoid similar crisis in the future.
Besides the obvious benefits of combating financial crime and protecting taxpayer dollars from waste, fraud, and abuse, FERA also will recover billions of dollars in restitution, fines, and penalties for the government and victims. For every $1 spent in the DOJ’s Criminal Division to prosecute fraud, more than $20 is recovered. For every $1 spent in the DOJ’s Civil Division to recover health care funds under the False Claims Act,more than $15 is returned to the government. (Department of Justice and the Taxpayers Against Fraud.)
The 111th Congress passed a law to ensure fair pay for all Americans. While the battle for equality and civil rights is far from over, in January 2009, all those who believe in the promise of “equality and justice for all” achieved a major victory when President Obama signed the Lilly Ledbetter Fair Pay Act of 2009 into law (P.L. 111-2). In doing so, Congress and President Obama ended a nearly two-year battle to overturn a Supreme Court decision that made it more difficult for victims of pay discrimination to seek redress and receive justice.
In Ledbetter v. Goodyear Tire & Rubber Co., Inc., the Court ruled that the 180-day statute of limitations on filing a discrimination claim with the Equal Employment Opportunity Commission (EEOC) under Title VII of the Civil Rights Act of 1964 begins to run when the original discriminatory decision is made and conveyed to the employee, regardless of whether the pay discrimination continues beyond the 180-day period. This ruling reversed a long-standing interpretation, used by nine federal circuits and the EEOC in both Democratic and Republican Administrations, under which the statute of limitations began to run each time an employee received a pay check or other form of compensation reflecting the discrimination.
The Lilly Ledbetter Fair Pay Act restored the “pay-check accrual” interpretation to ensure that employees who can prove pay discrimination based on race, color, religion, sex, national origin, age or disability will not be forever barred from seeking redress because they did not learn they were victims of pay discrimination within six months after the discriminatory decision was first made.
A previous attempt to pass this legislation in the 110th Congress was obstructed by Senate Republicans, but in the 111th Congress, with a larger majority, Senate Democrats were able to pass the bill on a vote of 61 to 30. The House of Representatives passed the bill on a vote of 250 to 177 and the measure became law on January 29.
ADDITIONAL RESOURCES: DPC released a fact sheet entitled Fair Pay for Women and All Americans is Critical to Our Nation’s Economic Recovery.
The Senate passed landmark voting rights legislation for the District of Columbia. Since 1801, the year after DC was established as the seat of the national government, its residents have been seeking representation in the House and Senate. On February 26, 2009 the Senate passed S.160, the District of Columbia House Voting Rights Act of 2009, a landmark measure to provide the District of Columbia with one voting seat in the House of Representatives and Utah — the next state in line to receive an additional representative based on the 2000 census — a fourth seat in the House, which would bring membership in the House from 435 to 437. The bipartisan bill was passed by a margin of 61 to 37. The House of Representatives passed a similar measure earlier this year.
As Congress charts a path to enact this legislation, it is important to remember that the bill reflects Democrats’ efforts to ensure democracy for all Americans, including those in the nation’s capital, who, at present, do not enjoy the most basic right of citizenship: to choose who governs them.
ADDITIONAL RESOURCES: DPC released a Legislative Bulletin on S.160, the District of Columbia House Voting Rights Act of 2009.
The Senate, under the leadership of Democrats, took the historic step of formally apologizing for the enslavement and racial segregation of African Americans. In June 2009, the Senate passed a bipartisan, bicameral resolution to apologize for slavery and the Jim Crow Era (S.Con.Res26). Recognizing that a collective apology on behalf of the United States for a collective wrong was appropriate, necessary, and long-overdue, the Senate formally:
· “Acknowledged the fundamental injustice, cruelty, brutality, and inhumanity of slavery and Jim Crow laws;
· Apologized to African-Americans on behalf of the people of the United States, for the wrongs committed against them and their ancestors who suffered under slavery and Jim Crow laws; and
· Expressed its recommitment to the principle that all people are created equal and endowed with inalienable rights to life, liberty, and the pursuit of happiness, and calls on all people of the United States to work toward eliminating racial prejudices, injustices, and discrimination from our society.”
While historic and important, this apology is not unprecedented. For example, in 1988, Congress offered a formal apology for the internment of Japanese Americans held during World War II. Moreover, several states and private corporations have issued apologies for their role in the enslavement and oppression of African Americans, and, in the 110th Congress, the House of Representatives passed a similar slavery apology.
The Senate sponsors of this resolution are currently working with the House to see that this resolution is passed and that the nation can continue on the path toward reconciliation, healing, and putting these dark periods of American history behind us.
The Democratic-led Senate is working to combat illicit methamphetamine production. Continuing work begun in the 110th Congress to curtail methamphetamine abuse, on June 9, 2009, the Senate passed unanimously S.256, the Combat Methamphetamine Enhancement Act of 2009, which will enhance regulation requirements for sellers and persons dealing in certain listed chemicals used to produce meth. The bill will require all retail sellers of these products to submit self-certifications of compliance with the Controlled Substances Act and create a civil penalty for the negligent failure to do so. The Attorney General will be required to develop and make public a list of all self-certified individuals on the Drug Enforcement Administration’s website. The bill will then prohibit distributors from selling meth-producing products to persons not listed.
ADDITIONAL RESOURCES: In the 110th Congress, DPC released a special report entitled, Senate Democrats are Committed to Combating Methamphetamine Abuse Across the Nation.
Democrats are Working Protect Our Nation’s Environment and Natural Resources
On March 30, 2009, President Obama signed into law the Omnibus Public Land Management Act of 2009 (P.L. 111-11). The legislation represents the most significant conservation legislation passed by Congress in 15 years. The legislation designated over two million acres of wilderness; adds over 1,000 miles of Wild and Scenic Rivers; 2,800 miles of National Trails; 330,000 acres of National Conservation Areas; codifies the National Landscape Conservation System; and authorizes the Forest Landscape Conservation Service and measures to improve our oceans, coasts, Great Lakes, and water resources. The following describes some of the provisions in the legislation:
· Wilderness. The Omnibus Public Land Management Act of 2009 designated over two million acres of wilderness surpassing the combined wilderness acreage designated by the 108th, 109th, and 110th Congresses (Congressional Research Service). The designation of the two million plus acres of new wilderness areas spans nine states (West Virginia, Virginia, Oregon, Idaho, New Mexico, Colorado, Michigan, Utah, and California). The designation of wilderness allows Congress to protect our nation’s most pristine lands and best wildlife habitats for the current and future generations.
· Wild and Scenic Rivers. The Omnibus Public Land Management Act of 2009 added over 1,000 miles to the National Wild and Scenic Rivers System in seven states (Oregon, Idaho, California, Utah, Arizona, Wyoming, and Massachusetts). Wild and Scenic Rivers are designated by Congress to preserve free flowing rivers that possess outstandingly remarkable environmental, scenic, and recreational features.
· National Trails System. The Omnibus Public Land Management Act of 2009 added more than 2,800 miles into the National Trails System through the creation of new national trails in New England, the Mid-Atlantic, the Pacific Northwest and the Southwest. The National Trails System is designed to preserve public access to trails so that they can continue to be valuable resources for our country.
· National Conservation Areas. The Omnibus Public Land Management Act of 2009 created more than 330,000 acres of new National Conservation Areas in Utah, New Mexico and Colorado. National Conservation Areas provide important protections from development while also improving those areas recreational opportunities.
· National Landscape Conservation System. The Omnibus Public Land Management Act of 2009 codified the National Landscape Conservation System currently operating administratively within the Department of Interior. In 2000, the Department of Interior administratively established the National Landscape Conservation System so that public awareness of the various natural areas managed by the Department of Interior might be increased. The codification of the National Landscape Conservation System will help ensure that sustained funding will be available for the Department of Interior to protect its most exceptional areas while also keeping environmental protection a high priority at the Department of Interior for years to come.
· Oceans. The Omnibus Public Land Management Act of 2009 will improve our nation’s understanding of the oceans, coasts, and the Great Lakes by authorizing coordinated federal research programs that will:
o Increase our understanding of ocean acidification, a process by which seawater becomes more acidic as the oceans absorb atmospheric carbon dioxide emissions. The acidity of surface seawater has increased by 30 percent since the beginning of the Industrial Revolution-the most dramatic change in ocean chemistry in at least 650,000 years (Discover Magazine);
o Expand our understanding of oceans, which cover two-thirds of the earth’s surface. Only approximately five percent of the ocean floor has been explored, and the potential for identifying new and beneficial scientific information, new drugs, and resources in the oceans remains significant; and
o Advance the knowledge of coastal and ocean resources and ecosystems that today lack real-time, standardized, and accessible data on key environmental variables like temperature, salinity, sea level, surface currents, and pH. The lack of this data significantly impairs data on the impacts that climate change could have on coastal and ocean ecosystems.
The Omnibus Public Land Management Act of 2009 also authorizes funding for coastal and estuarine landprotection. The pressures from increasing urbanization and pollution threaten these habitats. Conserving these areas will help meet diverse priorities, such as promoting tourism and recreation and supporting fisheries and wildlife that substantially contribute to coastal economies.
ADDITIONAL RESOURCES: DPC released a Fact Sheet entitled The Bipartisan Environmental Accomplishments of the Omnibus Public Land Management Act of 2009.
Senate Democrats passed legislation to curtail waste and inefficiency in the defense acquisition system. In recent years, cost overruns in the Department of Defense (DoD) acquisition system have placed an enormous burden on the defense budget and imposed an unacceptable cost to American taxpayers. According to the Government Accountability Office (GAO), more than half of DoD’s major defense acquisition programs (MDAPs) have reported experiencing critical cost growth in excess of 50 percent over the original estimate since 2006. In its latest annual report published in March, the GAO examined DoD’S.96 MDAPs and found $296 billion in cost overruns in Fiscal Year 2009 dollars and an average delay of 22 months. (GAO-09-326-SP, Defense Acquisitions, March 2009) GAO noted that, “These poor outcomes mean that other critical defense and national priorities may go unfunded and that war fighters may go without the equipment they need to counter the changing threats they face.” (GAO-09-543T, Defense Acquisitions, April 2009)
In January testimony, Secretary of Defense Gates identified the acquisition process as “chief” among the institutional challenges facing the Department and called on Congress to help address the “repeated – and unacceptable problems with requirements, schedule, cost, and performance” in the acquisition of defense weapons programs. (Secretary Gates, Testimony before the Senate Armed Services Committee, 1/27/09) Senate Democrats responded with swift action, successfully advancing bipartisan legislation to address these challenges head on.
On May 20, 2009, the Senate unanimously passed the conference report for S.454, the Weapon Systems Acquisition Reform Act of 2009. As Chairman Levin stated following Senate passage, “DoD acquisition programs fail because the department continues to rely on unreasonable cost and schedule estimates and continues to establish unrealistic performance expectations. Our bill addresses each of these problems, which we expect would lead to billions of dollars in taxpayer savings.” On May 22, 2009, President Obama signed the bill into law (P.L. 111-23).
Specifically, the Weapon Systems Acquisition Reform Act of 2009 includes provisions that will:
· Make our troops fighting on the front line the first priority by ensuring that the acquisition process is structured to support the war-fighter.
· Place defense acquisition programs on a sound footing at the outset and catch costly design flaws and technology risks in weapon systems before we start to build them. The bill includes provisions that require sound systems engineering, cost-estimating, and developmental testing early in the program cycle.
· Reduce risk, promote competition and prevent conflicts of interest by instituting better management practices at DoD. The bill includes measures requiring periodic reviews and assessments of critical technologies, increased use of prototypes, and directs DoD to reestablish systems engineering organizations and developmental testing capabilities.
· Provide increased oversight and accountability to ensure that programs are properly managed. The bill establishes an independent cost-estimating office to ensure that budget assumptions underlying acquisition programs are sound.
· Provide DoD with additional tools to hold accountable the worst-performing programs. The bill includes a provision that would establish the presumption that any program that exceeds its original baseline by more than 50 percent will be terminated unless it is certified by the Secretary as essential for national security.
The Senate unanimously approved strengthened supervision of the TARP. On February 4, 2009, the Senate passed the Special Inspector General for the Troubled Asset Relief Program Act of 2009 (S. 383) by unanimous consent. This bipartisan legislation expands the authority of and adds the tools needed by the Special Inspector General overseeing the $700 billion Troubled Asset Relief Program that was created last fall. The legislation was signed into law on April 24, 2009 (P.L. 111-15). The new law will, among other things, add authority for the Inspector General to audit programs, function with the same law enforcement authority granted to the Inspectors General of major federal agencies, and cooperate with other Inspectors General.
The Senate unanimously approved legislation to make the federal grants application process more transparent. On March 17, 2009, the Senate unanimously passed the Federal Financial Assistance Management Improvement Act of 2009 (S.303), a bill to simplify the federal grants process. According to a Government Accountability Office (GAO) study, each year, federal agencies distribute $400 billion via 1,000 different federal programs, including programs that received funding in the economic recovery package. Unfortunately, until now, each agency used different application processes and reporting and payment systems. Worse, many agencies failed to provide a complete listing of grants on Grants.gov, the most obvious resource for applicants seeking to learn about federal programs.
S.303 would reauthorize and update the Federal Financial Assistance Management Improvement Act of 1999 (FFAMIA) to streamline the federal grants process by requiring the Director of the Office of Management and Budget to establish and maintain a public website that serves as a central point of information and access for federal grant applicants, including grant: 1) announcements; 2) statements of eligibility; 3) application requirements; 4) purposes; 5) federal agency providers; and 6) deadlines for applying and awarding. The legislation also requires the website to accommodate online applications. The measure requires the OMB director to develop a Strategic Plan to identify those programs suitable for common applications and forms and then devise a plan for agency and program coordination. To ensure implementation across the federal government, the bill also requires each agency, not exempted from FFAMIA, to develop a plan that describes how it will carry out its individual responsibilities under the OMB plan.
Democrats are Working to Support Small Business Innovation
Congress approved a program to give entrepreneurs the resources they need to help boost our economy. On March 17, 2009, the Senate passed a bipartisan bill (H.R.1541) to temporarily extend the Small Business Administration’s Small Business Innovation Research program.
Although small firms employ 41 percent of the nation’s high-tech workers and generate 13 to 14 times more patents per employee than large firms, they have received a disproportionately low share of federal R&D dollars. The SBIR program was designed in 1982 to harness the innovative capacity of America’s small businesses to meet the needs of our federal agencies and to help grow small, high-tech firms that, in turn, grow local economies all across the nation. Since then, the SBIR program has generated more than 84,000 patents and millions of jobs. Eleven federal agencies participate in the SBIR program – including the Department of Defense and National Science Foundation – allocating 2.5 percent of their extramural research and development dollars for the program.
This temporary reauthorization, which extends SBIR and other programs through July 31, 2009, gives Congress more time to pass a comprehensive bipartisan bill that will strengthen and improve the SBIR program and provide long-term stability for the program.
The legislation was signed into law on March 20, 2009 (P.L. 111-10).
ADDITIONAL RESOURCES: DPC released a Fact Sheet entitled, Senate Democrats are Committee to America’s Small Businesses.
Democrats are Working to Improve Opportunities for Service
As Americans face the numerous challenges created by the economic crisis, the need for service to our communities is greater than ever. On March 26, 2009, the Senate approved the Edward M. Kennedy Serve America Act (H.R.1388). This legislation reauthorizes the National and Community Service Act of 1990 and the Domestic Volunteer Service Act of 1973, and authorizes nearly $6 billion over five years to expand opportunities for Americans to engage in service throughout their lives. The bill was signed into law on April 21, 2009 (P.L. 111-13).
Currently, programs such as Senior Corps, AmeriCorps, and Learn and Serve America, support almost four million Americans in service to more than 70,000 community organizations. These services have had the empowering and inspiring effect of mobilizing an additional 2.2 million volunteers. This army of volunteers has the power to transform and inspire communities across America.
The new law will expand the mission of the Corporation for National and Community Service (the Corporation) and increase the number of national service participants in the AmeriCorps program from 75,000 current members to 250,000 over the next eight years. An analysis of AmeriCorps shows that every $1 invested produced returns up to nearly $4 in direct, measurable benefits. By creating the ServeAmerica Corps, the Corporation will be able to target service in four areas in need of increased assistance in low-income communities, including: Clean Energy, Education, Health Futures, and an Opportunity Corps to boost financial literacy.
The Edward M. Kennedy Serve America Act renews a spirit of national service and encourages volunteerism in all age groups. An Encore program will also be developed to engage the retiring baby boom generation, which has a multitude of talents to share. A Veterans Service Corps will also be established to support the service of veterans.
Two new programs will be created under the National and Community Service Act of 1990, including a Youth Engagement Zone to Strengthen Communities program and a Campus of Service program. The Youth Engagement Zones aim to engage high school students and out-of-school youth in the transformative experience of service through partnerships between community organizations and schools in low-income communities. The Campus of Service program will support and recognize institutions of higher learning with outstanding service-learning programs and provide funding to support students’ pursuit of careers in public service.
The Edward M. Kennedy Serve America Act willcreate a Summer of Service program to enlist middle and high school students in volunteer services at home, including a $500 education award to be directed to the cost of college. The law will also increase the education award in AmeriCorps to match the Pell Grant award.
ADDITIONAL RESOURCES: DPC released a Legislative Bulletin on S.277, the Serve America Act.