Congressional Dish
Congressional Dish

An independent podcast examining what the U.S. Congress is doing with our money and in our names. www.congressionaldish.com Follow @JenBriney on Twitter

67 people died this week in a mid-air collision between a military helicopter and a passenger plane in Washington DC. The investigation into this crash is still in its infancy but Congress was warned just a few weeks ago that there are many dangers lurking in our air traffic system, dangers that Congress recently made worse at Reagan Washington National Airport, where the crash took place. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Contact Your Members of Congress: (202) 224-312
President Donald Trump is back in power despite his illegal attempt to remain President after losing the 2020 election. In this episode, hear expert testimony about the Supreme Court decision that stemmed from the now-defunct Federal prosecution of Donald Trump which granted the President legal immunity for many actions. What does it mean going forward? What can and can’t he do? Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media!
The 118th Congress came to an unexpectedly — though not necessarily surprisingly — chaotic end. In this episode, hear about all the drama that averted a government shutdown, learn what became law, and examine what could have become law if it weren’t for Elon Musk. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media!
U.S. military whistleblowers have told Congress about secret programs related to non-human piloted aircraft and submersibles. In this episode, listen to testimony from additional whistleblowers who add more information to what we have already learned, listen to the response from the person at the Defense Department in charge of investigating these claims, and learn about a secret program called Immaculate Constellation, which allegedly has a hidden treasure trove of evidence that we are not alone. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media!
Immediately after we published the Freaky Food episode, the Commissioner of the Food and Drug Administration testified to the Senate and provided valuable insights into why our food supply is concerning for all the reasons exposed in episode 305. In this episode, listen to testimony from two hearings with FDA officials as we finish this series looking into the hidden dangers inside our food. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media!
There are dangers lurking in our food that affect your health and the health of our entire society, and you should know about them. In this episode, get the highlights from two recent Congressional events featuring expert testimony about the regulation of our food supply, as well as testimony from the man who is soon likely to be the most powerful person in our national health care system. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media!
After a brief analysis of what we currently know about the 119th Congress, we process the return of President Trump. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Reconciliation Rebecca Goldman. September 1, 2022. League of Women Voters. Richard Kogan and David Reich. May 6, 2022. Center on Budget and Policy Priorities. Lisa Desjardins. April 7, 2021. PBS News. House Race Results The New York Times. 2020 vs. 2024 Presidential Results The New York Times. The New York Times. Audio Sources November 5, 2024 justinryoung on Twitch November 7, 2024 We’re Not Wrong Music by Editing Production Assistance
During the RNC and DNC, Jen interviewed nine members of Congress about Congress itself. What is it like to work there? Do they think Congress is dysfunctional? If so, how do they think it could be fixed? In this episode, listen to the most interesting responses from all of the interviews. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources David Daley. October 4, 2024. The Guardian. OpenSecrets. OpenSecrets. Accessed October 30, 2024. Congressional Research Service. Accessed October 30, 2024. Congressional Research Service. Music by Editing Production Assistance
This election has featured a lot of talk about ‘immigration’ and ‘the border’ but has been short on specifics. In this episode, you’ll get those specifics. Specifically, you’ll learn what was in H.R. 2, a Republican bill passed by the House, and you’ll learn what was in the so-called bipartisan border bill which was killed by Donald Trump’s loyalists in the Senate and which Kamala Harris has promised to revive as President. Which bill would actually solve the problems? Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Current Immigration Process Visas Accessed October 22, 2024. U.S. Department of State, Bureau of Consular Affairs. Accessed October 22, 2024. Boundless. Accessed October 22, 2024. Boundless. October 22, 2024. USAGov. September 3, 2024. U.S. Department of State, Bureau of Consular Affairs. Asylum August 1, 2024. USAFacts. Ted Hesson and Mica Rosenberg. June 5, 2024. Reuters. Accessed October 22, 2024. Migration Policy Institute. Unauthorized Immigration John Gramlich. October 1, 2024. Pew Research Center. Jeffrey S. Passel and Jens Manuel Krogstad. July 22, 2024. Pew Research Center. Backlog December 18, 2023. TRAC Immigration. Immigrant Detention Eunice Cho. August 7, 2023. American Civil Liberties Union. Irwin County Detention Center November 15, 2022. Senate Committee on Homeland Security and Governmental Affairs, Permanent Subcommittee on Investigations. Jonathan Raymond. November 15, 2022. 11 ALIVE. May 20, 2021. WABE. Molly O’Toole. May 20, 2021. The LA Times. C. Carlos Carreiro Immigration Detention Center in Bristol County, MA Ben Berke. May 21, 2021. The Public’s Radio. December 15, 2020. Office of the Massachusetts Attorney General Civil Rights Division. Etowah County Detention Center in Gadsden, Alabama Erin Wise. April 15, 2022. ABC 33 40 News. Ted Hesson and Mica Rosenberg. March 25, 2022. Reuters. March 25, 2022. BirminghamWatch. March 25, 2022. U.S. Immigration and Customs Enforcement. Paul Moses. June 8, 2018. The Daily Beast. Glades County Detention Center in Moore Haven, Florida February 2, 2022. Freedom for Immigrants. Debbie Wasserman Schultz et al. February 1, 2022. South Texas Family Residential Center Accessed October 22, 2024. OpenSecrets. Sandra Sanchez. Updated June 24, 2024. Border Report. Ted Hesson. June 10, 2024. Reuters. Penalties for Illegally Entering Countries World Population Review. Bipartisan Border Bill Failure Ariana Figueroa. May 24, 2024. Missouri Independent. Catherine Rampell. May 23, 2024. The Washington Post. Mary Clare Jalonick and Stephen Groves. February 7, 2024. AP News. Mary Clare Jalonick and Stephen Groves. February 7, 2024. AP News. The Bills H.R. 2 Outline Division A - Border Wall Would require the Secretary of Homeland Security to resume “all activities” related to constructing a border wall between the US and Mexico that were planned by the Trump administration. Wall would have to be at least 900 miles long, and include not only a physical wall, but also surveillance towers, radars, seismic acoustic detection sensors, and 24 hour drone monitoring. Would require killing all carrizo cane and salt cedar plants along the Rio Grande River by releasing non-stinging wasps imported from Spain and France into the area. Would waive “all legal requirements” that would stand in the way of of building the wall. Division B - Immigration Enforcement and Foreign Affairs Would make it illegal to process asylum claims of individuals who: do not enter at official ports of entry. crossed through another country on their way to the US and did not apply to live there and receive an official denial in each country they entered before entering the US. have been convicted of misdemeanor offenses, allowing the Secretary of Homeland Security or Attorney General to add disqualifying acts without approval from Congress and no court reviews allowed. Would allow the Secretary of Homeland Security to take away the authorization for an individual who has been accepted into the US through the asylum process to work legally in the US. Work permits would only be authorized for 6 months at a time. Would reopen detention centers that were closed by the Biden Administration. Title V - Protection of Children Would require the DHS Secretary to return unaccompanied children back to their home countries if they are not trafficking victims and do not have a fear of Return. Would authorize immigration officers to withdraw a child’s application to be admitted into the United States regardless of the child’s ability or desire to do so. Would require the DHS to collect information - name, social security number, DOB, address, contact info, and immigration status - of people who will be taking custody of immigrant children. Within 30 days of receiving that information, if they determine that individual is not legally in the United States, must initiate removal proceedings. Would change the law so that these people have “access” to lawyers instead of having lawyers to represent them. Title VI - Visa Overstay Penalties Would Increase fines for illegally entering the United States from $50-250 to $500-1000 Would create new penalties for overstaying visas: First offense: fines up to $1,000 or up to 6 months in prison, or both Repeat offenses: fines up to $2,000 or up to 2 years in prison, or both S.4361 Outline Division A - Border Security & Combatting Fentanyl Supplemental Appropriations $6.3 billion to border patrol. $6 billion to Immigration and Customs Enforcement. ~$2.4 billion for deportations. ~$1.6 billion for prisons (the goal in the bill is for ICE to be able to detain 46,500 humans at all times). ~$1.2 billion for services to help people navigate the immigration and asylum system, and to help people leave the country if denied visas (). ~$415 million to hire more ICE agents (goal is to hire 800 more agents). ~$200 million for counter fentanyl investigations. ~$4 billion to US Citizenship and Immigration Services with most going towards hiring more staff. ~ $1.2 billion to the State Department $850 million for “humanitarian needs in the Western Hemisphere” to reduce migration (with the idea being that if their home countries are less dangerous, then people won’t want to come here as often) $230 million to pay other countries to accept deported individuals. $440 million, most of which would be spent on Immigration Judge Teams which include lawyers, court administrators, staff, and court costs. Would expand the number of border patrol and ICE officers authorized to issue a notice to appear, reducing the workload of the judges. Would allow protection determination proceedings to take place in any federally owned or leased building that is not property owned, leased or managed by ICE or border patrol and is “a reasonable distance” from the migrants current residence, expanding the locations where the cases can be heard beyond the already too crowded court buildings. Division B - Border Act Title I - Capacity Building For five years: would give the Secretary of Homeland Security the authority to appoint people to positions within the Refugee, Asylum, and International Operation Directorate, the Field Operations Directorate, and the Service Center Operations Directorate of US Citizenship and Immigration Services if the Secretary determines that a critical hiring need exists. would give the Secretary of Homeland Security the authority to appoint ICE deportation officers if the Secretary determines that a critical hiring need exists. Would provide a permanent authority for the DHS Secretary to re-hire a former employee to any position in ICE, Border Patrol, or US Citizenship & Immigration Services. Would give asylum officers a 15% pay raise. Would require annual training for border patrol officers about the law, de- escalation techniques, and migrant and agent safety measures. Title III - Securing America For three years, the Secretary of Homeland Security would be given the authority “in the Secretary’s sole and unreviewable discretion” to declare a “border emergency” and remove any migrant who doesn’t have pre-determined permission to enter the United States or doesn’t present themselves at a port of entry in accordance with a process approved by the DHS Secretary. Title IV - Promoting Legal Immigration Would set up a special process to more easily admit no more than 10,000 refugees who worked with the United States from Afghanistan. Would allow the spouse, fiancé, or child of an admitted migrant to join them in the United States and receive employment authorizations. Would slightly increase the number of visas for family members that would be issued in years 2025 through 2029 (512,000 instead of 480,000 = ~ 6% increase). Audio Sources August 22, 2024 29:45 Vice President Kamala Harris: And let me be clear. After decades in law enforcement, I know the importance of safety and security, especially at our border. Last year, Joe and I brought together Democrats and conservative Republicans to write the strongest border bill in decades. The Border Patrol endorsed it. But Donald Trump believes a border deal would hurt his campaign. So he ordered his allies in Congress to kill the deal. Well, I refuse to play politics with our security. Here is my pledge to you: As President, I will bring back the bipartisan border security bill that he killed. And I will sign it into law. July 18, 2024 April 18, 2018 Senate Judiciary Committee, Subcommittee on Border Security and Immigration Witness: James McHenry, Director, Executive Office for Immigration Review, U.S. Department of Justice Clips 2:42 Sen. John Cornyn (R-TX): Earlier administrations, both Republican and Democrat, have struggled with how to reduce the case backlogs in the immigration courts. And, unfortunately, Congress has never provided the full extent of immigration judges and support staff truly needed to eliminate the backlogs. As a result, backlogs continue to grow, from 129,000 cases in fiscal 1998 to a staggering 684,000 as of February 2018. 3:27 Sen. John Cornyn (R-TX): Aliens in removal proceedings sometimes wait for years before they ever appear before an immigration judge. For example, as of February 2018 courts in Colorado have the longest time for cases sitting on their docket more than 1,000 days -- almost three years. In my home state of Texas, the current wait is 884 days -- almost two and a half years. 28:45 James McHenry: A typical immigration court proceeding has two stages, or two parts. The first is the determination of removability. The Department of Homeland Security brings charges and allegations that an alien has violated the immigration laws. The judge, the immigration judge, first has to determine whether that charge is sustained, and that will be based on the factual allegations that are brought, so the judge will make determinations on that. If there is a finding that the alien is removable, then the case proceeds to a second phase. If the judge finds the alien is not removable, then the case is terminated. At the second phase, the immigration judge gives the alien an opportunity to apply for any protection or relief from removal that he or she may be eligible for under the Immigration and Nationality Act. This will involve the setting of a separate hearing at which the respondent may present evidence, they may present witnesses, they have the right to cross-examine witnesses brought by the department, and they will bring up whatever factual bases there is for their claim of relief or protection. At the end of that hearing, the immigration judge will assess the evidence, will assess the testimony, will look at the law, and will render a decision. The judge may either grant the application, in which case the respondent will get to remain in the United States. The judge may deny the application but give the respondent an opportunity to voluntarily depart at their own expense and sometimes after paying a bond, or the immigration judge may order the alien removed. 41:50 Senator Mike Lee (R-UT): I believe you recently testified in front of the House Judiciary Committee that it would take about 700 immigration judges in order to be able to address the backlog and address the current case load. Is that correct? James McHenry: Yeah, last fall the president proposed adding additional immigration judges, up to a number of 700. If we can get 700 on board, especially with our performance measures, we could complete over 450,000 cases a year. That would eviscerate the backlog. Sen. Mike Lee (R-UT): So, 700 would do it…. End of Episode Announcements Andrew Heaton’s New Book: Music by Editing Production Assistance
We’re making it easy for you to judge the job performances of your members of Congress! In this episode, Jen tells you about a list of single issue votes that were taken in the House and Senate during the 118th Congress. Most importantly, we gave you all the information you need to find your members’ voting records in this episode’s show notes. You can find your 2024 Congressional Election Study guide in the episode 301 show notes on www.congressionaldish.com. Happy voting! Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Enacted Laws Congressional Dish Episode: ← find how your Representative voted here ← find how your Senator voted here Effects of H.R. 7888: Expands the number of people allowed to be legally spied on by the U.S. government and the number of people with information stored in the FISA database (which has information about Americans whose data has been collected along with information about foreigners). It does so by… Giving the Department of Justice (DOJ) permission to search the FISA database to vet foreigners who are applying for tourist visas to visit the United States and Expanding the definition of ‘foreign intelligence’ to include counter narcotics targets. Expands the number of companies who get legal immunity for turning our information over to the government by expanding the definition of “electronic communications service provider”. The Federal Bureau of Investigation (FBI) is no longer legally allowed to search the FISA database solely to find evidence of a crime. The Federal Bureau of Investigation (FBI) is prohibited from using uncorroborated information from political groups or anonymous sources in press reports to get FISA warrants. Limits the number of people within the government who are allowed to search through the database. Background Sources for H.R. 7888: INTEL.gov. Michael Horowitz. April 27, 2023. U.S. Department of Justice, Office of the Inspector General. Jonathan Turley. December 14, 2019. The Hill. Conor Clarke. February 2014. Stanford Law Review. “The Biggs Amendment” to H.R. 7888 [failed] ← find how your Representative voted here Intended Effect of the Biggs Amendment: Would require U.S. government officials to get a warrant before searching through the FISA database for information about U.S. citizens or companies, with emergency exceptions. Congressional Dish Episode: ← find how your Representative voted here Effects of H.R. 7521: It is now illegal for companies to provide internet hosting services, distribute, and/or update “foreign adversary controlled applications”, websites, or games, which are partially owned by a foreign person and are determined by the President - with no proof required - to pose “a significant threat to the national security of the United States.” Establishes a process that allows companies to host, distribute, and/or update if the app, website, or game changes ownership. If companies host, distribute, and/or update the targeted apps, websites, or games, the companies are subject to fines that - depending on the user base of the targeted app, website, or game - can be hundreds of billions of dollars. ← find how your Representative voted here Intended Effects of H.R. 8034: Provide almost $26 billion to Israel. 64% of the money would be for war expenses 35% of the money would be for humanitarian purposes Less than 1% of the money would be for diplomatic expenses Provide $400 million for FEMA Background Sources for H.R. 8034: April 17, 2024. Al Jazeera. Fatima Al-Kassab. January 26, 2024. NPR. ← find how your Representative voted here Intended Effects of H.R. 8035: Provide over $60 billion for Ukraine (and other neighboring countries) 83% of the money would be for war expenses 16.5% of the money would be for humanitarian expenses Less than 0.5% of the money would be for diplomatic expenses Provide $341 million for production of nuclear weapons materials and nuclear nonproliferation programs House Bills ← find how your Representative voted here Intended Effects of H.R. 7023: Double the length of permits to discharge pollutants in waterways from 5 years to 10 years Removes the EPA administrators ability to prohibit discharges in specific disposal sites if he determines that the discharge of materials will have an unacceptable adverse effect on municipal water supplies, shellfish beds and fishery areas, wildlife, or recreational areas after a disposal permit has been issued. Creates nationwide permits to allow for transmission projects for people, water, wastewater, carbon dioxide, fuel, and oil and gas pipelines that do not result in a “loss greater than 1/2 acre of waters of the United States for each single and complete project” In reissuing these nationwide permits, the EPA would not be required to consult with a state nor any other Federal agency and these permits will get to short cut environmental assessments that are required by the National Environmental Policy Act. Limits judicial review Puts a 60 day time limit after the permit is issued for a judicial review Doesn’t allow anyone who didn’t file a comment during the public comment period to file a lawsuit. If someone did file a comment, they may not file a lawsuit about anything that they didn’t address in their comment. Prohibits the court from vacating, revoking, or limiting the permit unless the court finds that the activities authorized “present an imminent and substantial danger to human health or the environment for which there is not other equitable remedy available under the law’ Approves an end-of-Trump administration EPA approval for Florida to administer Clean Water Act permitting. Background Sources for H.R. 7023: Becky Bohrer and Patrick Whittle. January 31, 2023. PBS News. July 19, 2016. Earthjustice. Earthjustice. ← find how your Representative voted here Intended Effects of H.R. 1435: Prohibit states from banning fossil fuel burning internal combustion engines in cars and trucks. Effectively revokes the EPA waiver that allows California to ban the sale of fossil fuel burning cars. Background Sources for H.R. 1435: Jeff St. John. September 23, 2020. Greentech Media. ← find how your Representative voted here Intended effects of H.R. 7176: Give the Federal Energy Regulatory Commission the “exclusive authority” to approve or deny applications to export natural gas from the United States to a foreign country, which eliminates requirements for Department of Energy approval and provisions to address free trade agreements. Deems exportation or importation of natural gas to be in the public interest. Background Sources for H.R. 7176: September 26, 2024. National Drought Mitigation Center. Zachary-Taylor Wright. September 17, 2024. MySA. Steven Santana. July 23, 2024. MySA. ← find how your Representative voted here Intended Effects of H.R. 6543: Requires providers of short term lodging (hotels and AirBnBs) and Internet platforms that advertise and sell short term lodging to display the total price including all mandatory fees, except for government taxes and fees. ← find how your Representative voted here Intended Effects of H.R. 3950: Requires ticket issuers and secondary market ticket issuers to clearly display the total ticket price, including all fees, at the time the ticket price is first displayed and provides an itemized list of charges before the ticket purchasing process is complete. Prohibits ticket issuers and secondary market ticket issuers from selling tickets that they do not physically possess at the time of sale. Prohibits secondary ticket issuers from using the word ‘official’ or similar words implying a partnership in their marketing and search engine wording unless they have the consent of the venue, team, or artist. Requires ticket issuers to provide a refund or a similar ticket to a rescheduled event, with the approval of the customer, if an event is canceled or postponed (except for in case of a natural disaster or other event beyond the ticket issuer’s control). ← find how your Representative voted here Intended Effects of H.R. 4639: Prohibits law enforcement or the intelligence community from buying customer or subscriber information directly from companies or from data brokers. Any information “illegitimately obtained” is not allowed to be used against us in court. Has exceptions for FISA surveillance of foreigners. Limits immunity for companies that comply with surveillance orders and do not stop the surveillance when a court order is denied. Background Sources for H.R. 4639: Carly Page. July 18, 2022. TechCrunch. Senior Advisory Group Panel on Commercially Available Information. January 27, 2022. Office of the Director of National Intelligence. Byron Tau. June 19, 2020. The Wall Street Journal. Senate Bills ← find how your Senator voted here Intended Effects of S. 316: Repeal the authorizations for US military operations in Iraq that were passed in 1991 and 2002. Background Sources for S. 316: Meghann Myers. January 25, 2024. Military Times. ← find how your Senator voted here Intended Effects of S. 4072: To prevent the enforcement of the , which would set stricter standards for fossil fuel burning cars and trucks that would be phased in between model year 2027 and 2032. Prohibits enforcement of any similar rule that could be written in the future. The standards could be met via the production of cleaner fossil fuel powered vehicles, hybrids, plug-in hybrids, and electric vehicles. EPA estimates the air pollution reductions would provide ~$13 billion in reduced annual health care costs by preventing the emission of thousands of tons of particulate matter, nitrogen oxides, and volatile organic compounds. EPA estimates the new standards would save Americans $46 billion per year in fuel costs and $16 billion per year due to reduced maintenance and repair costs for drivers, totaling ~$6,000 over the course of a new vehicle’s lifetime. ← find how your Senator voted here Intended Effects of S. 4445: Guarantees an individual’s rights to receive fertility treatment, make decisions regarding the donation, use, storage, and disposal of oocytes, sperm, fertilized eggs and embryos, and enter contracts with health care providers to enact those decisions. Guarantees a health provider’s right to provide fertility treatments and provide for testing, use, storage, shipping, and disposal of genetic material including oocytes, sperm, fertilized eggs, and embryos. Guarantees a health insurance provider’s right to cover fertility treatments. Guarantees a manufacturer’s right to manufacture, import, market, sell, and distribute drugs and devices that are used for fertility treatments. Allows lawsuits against any State or individual who interferes with the right to fertility treatments by the Attorney General, health care providers, and individuals adversely affected. This would supersede any State law regardless of when it was enacted and prohibits enforcement of any state law that is in conflict with these rights. Requires the Department of Defense to provide fertility treatments (specifically three egg retrievals and unlimited embryo transfers) to active duty military members and their spouses. Requires health plans, Medicaid, and Medicare that cover obstetrical (child birth related) services to also provide coverage for fertility treatments. Background sources for S. 4445: Maya C. Miller. September 17, 2024. The New York Times. Alander Rocha. April 3, 2024. Alabama Reflector. Alander Rocha. February 19, 2024. Alabama Reflector. Audio Sources March 21, 2024 Clips Rep. Rick Larsen (D-WA): My colleagues have criticized EPA’s use of its Clean Water Act review or veto authority. Yet, the record shows EPA’s use of this authority has been consistent with congressional intent. I see no reason for removing this authority. Since enactment of the Clean Water Act in 1972, EPA has only exercised this authority 14 times—most recently in relation to large-scale mining proposals in Alaska and West Virginia. EPA’s use of this authority has, in fact, been bipartisan. EPA used it 2 times during Democratic administrations and 12 times during Republican administrations. Rep. Eric Burlison (R-MO): This bill will cut red tape, strengthen the permitting process in favor of those seeking the permits, provide clarity to the EPA to ensure that they are following what the law intends, and, most importantly, fight back against the militant climate agenda. Rep. Eric Burlison (R-MO): Our court system is already being attacked from every angle. Let’s not let the environmentalists continue to manipulate the courts to push their climate religion. It should be an efficient and speedy process so businesses can build the infrastructure that our country depends on. Rep. David Rouser (R-NC): Mr. Chairman, in closing, I encourage my colleagues on both sides of the aisle to support this bill, which provides energy predictability and certainty that our utilities, energy, manufacturing, and agricultural industries need to succeed, which are so critical to American greatness in energy, food production, and the manufacturing necessary to improve the standard of living of every American. That is what this is about, Mr. Chairman. Music by Editing Production Assistance
You do not have the right to repair your own belongings because of intellectual property rights granted to corporations by Congress in 1998. In this episode, listen to the debate happening in Congress about if and how they should grant customers the right to repair and get a status update on the multiple efforts under way in the current Congress, including one with a good chance of becoming law. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes McDonald’s Ice Cream Machines Andy Greenberg. December 14, 2023. Wired. Joseph Fawbush. March 29, 2022. FindLaw. John Deere Luke Hogg. January 8, 2024. Reason. Internet of Things Updates and Maintenance Márk Szabó. August 27, 2024. WeLiveSecurity. Massachusetts Auto Repair Law Massachusetts Office of the Attorney General. DoD’s Revolving Door OpenSecrets. OpenSecrets. Karl Evers-Hillstrom and Reid Champlin. June 18, 2019. OpenSecrets. OpenSecrets. Salary.com. Military Right to Repair Issues Kyle Mizokami. February 11, 2020. Popular Mechanics. Max Finkel. February 8, 2020. Jalopnik. Elle Ekman. November 20, 2019. The New York Times. Lucas Kunce and Elle Ekman. September 15, 2019. Technological Protection Measures (TPMs) Jennifer Zerkee. November 8, 2023. Simon Fraser University. Cyber Risks Sam Curry et al. January 3, 2023. samcurry.net. Apple Lawsuit Brandon Vigliarolo. December 18, 2023. The Register. NDAA Sec. 828 Jason Koebler. August 28, 2024. 404 Media. AdvaMed et al. July 30, 2024. DocumentCloud via 404 Media. Laws Bills Sec. 828 : REQUIREMENT FOR CONTRACTORS TO PROVIDE REASONABLE ACCESS TO REPAIR MATERIALS. Fair Repair Act Audio Sources May 16, 2024 Senate Armed Services Committee Witnesses: Carlos Del Toro, Secretary of the Navy Clip Sen. Elizabeth Warren: So the Navy acquires everything from night vision goggles to aircraft carriers through contracts with big defense contractors, but the contractors often place restrictions on these deals that prevent service members from maintaining or repairing the equipment, or even let them write a training manual without going back through the contractor. Now the contractors say that since they own the intellectual property and the technical data underlying the equipment, only they have the right to repair that equipment. These right to repair restrictions usually translate into much higher costs for DOD, which has no choice but to shovel money out to big contractors whenever DOD needs to have something fixed. So take the Navy's littoral combat ship, General Dynamics and Lockheed Martin considered much of the data and equipment on the ship to be proprietary, so the Navy had to delay missions and spend millions of dollars on travel costs, just so that contractor affiliated repairmen could fly in, rather than doing this ourselves. Secretary Del Toro, when a sailor isn't allowed to repair part of their ship at sea, and a marine isn't allowed to access technical data to fix a generator on a base abroad. One solution is for the Navy to buy the intellectual property from the contractors. So can you say a little bit about what the benefits are of the Navy having technical rights for the equipment that it has purchased. Sec. Carlos Del Toro: The benefits are enormous, Senator, and we've actually had tremendous success, I'd say, in the last year and a half to two years, through the taxpayer advocacy program that we initiated when I came in. There have been three examples, one, gaining the intellectual property rights for the new ACV class of ships that will replace the AAVs. The F-35 negotiations really proved themselves out in a significant way as well, too. And lastly, the 20 F-18s that the Congress authorized in ‘22 and ‘23, we were able to make significant gains in terms of the government finally getting the intellectual property rights that were necessary for us to be able to properly sustain those moving forward. Sen. Elizabeth Warren: So I am very, very glad to hear this. I like the taxpayer advocacy project and how you're training contract officers to secure technical equipment that the Navy buys, but I think you should have the support of Congress on this. Senator Braun and I have introduced the Stop price gouging the military act to give DoD more tools to get cost and pricing data so that you will be in a better position to negotiate better deals with contractors. There's also more that we can do to ensure that the Navy and the rest of the services have the rights they need to bolster readiness. So let me ask you, Secretary Del Toro, would having a stronger focus on right to repair issues during the acquisition process, like prioritizing contract bids that give DoD fair access to repair materials, and ensuring that contract officers are looking into buying technical rights early on, would that help the Navy save costs and boost readiness at the same time? Sec. Carlos Del Toro: Very much. Senator, in fact, one of the things that we have prioritized since I came in as Secretary of the Navy, given my acquisition background, is actually those negotiations need to happen as early as possible before that we even as we develop the acquisition strategy for that contract to go out to bid, and by doing so, we will reap tremendous returns. July 18, 2023 House Judiciary Committee Witnesses: Aaron Perzanowski, Thomas W. Lacchia Professor of Law, University of Michigan Law School , Legal Fellow, Hudson Institute’s Forum for Intellectual Property Kyle Wiens, Co-founder and CEO, iFixit Paul Roberts, Founder, SecuRepairs.org; Founder and Editor-in-Chief, the Security Ledger Scott Benavidez, Chairman, Automotive Service Association; Owner, Mr. B’s Paint & Body Shop Clips 41:25 Scott Benavidez: My name is Scott Benavidez. I'm the Chairman of the Automotive Service Association's Board of Directors. I am also a second generation shop owner from Albuquerque, New Mexico, Mr. B's Paint and Body Shop. Scott Benavidez: We do have concerns when some insurers insist on repairs that are simply cheaper and quicker, without regard to quality and safety. Repairers understand better than anyone the threat of replacement crash parts or lesser quality. We can and should have a competitive marketplace that doesn't compromise quality or safety, deciding to only cover the cheapest option without understanding implications for quality leaves collision shops and their customers in a tough position. Very few consumers have the knowledge about these types of crash parts used on their vehicles as numerous crash parts in the marketplace, such as OEM (original equipment manufactured) parts, certified aftermarket parts, aftermarket parts, reconditioned crash parts, and recycled crash parts. Repairers can make recommendations, but their customers are unlikely to hear if the insurance won't cover them. 46:45 Paul Roberts: My name is Paul Roberts, and I'm the founder of Secure Repairs. We're an organization of more than 350 cyber security and information technology professionals who support the right to repair. 46:55 Paul Roberts: I'm speaking to you today on behalf of our members to make clear that the fair access to repair materials sought by right to repair laws does not increase cyber risk, and in fact, it can contribute to a healthier and more secure ecosystem of smart and connected devices. Paul Roberts: Proposed right to repair legislation considered by this Congress, such as the Repair Act, or last session, the Fair Repair Act, simply asks manufacturers that already provide repair information and tools to their authorized repair providers to also provide them at a fair and reasonable price to the owners of the devices and to third parties that they may wish to hire to do their work. 47:35 Paul Roberts: By definition, the information covered by right to repair laws is not sensitive or protected, as evidenced by the fact that the manufacturers already distribute it widely to hundreds, thousands, or even tens of thousands of workers for their authorized repair providers. This could be everyone from mechanics working at auto dealerships to the folks staffing the Geek Squad at Best Buy. 48:00 Paul Roberts: Also, we have yet to find any evidence that the types of information covered by right to repair laws like schematic diagrams, service manuals, diagnostic software and replacement parts act as a portal to cyber attacks. The vast majority of attacks on internet connected devices - from broadband routers to home appliances to automobiles - today exploit weaknesses in the embedded software produced and distributed by the manufacturers, or alternatively, weak device configurations so they're deployed on the internet in ways that make them vulnerable to attack. These security weaknesses are an epidemic. A recent study of the security of Internet of Things devices, by the company Phosphorus Labs, or a cybersecurity company, found that 68% of Internet of Things devices contained high risk or critical software vulnerabilities. As an example, I'd like to call attention to the work of a group of independent researchers recently led by Sam Curry, who published a report, and you can Google this, "Web Hackers vs. the Auto Industry" in January 2023. That group disclosed wide ranging and exploitable flaws in vehicle telematics systems from 16 different auto manufacturers. At a leading GPS supplier to major automakers, the researchers claimed to obtain full access to a company-wide administration panel that gave them the ability to send arbitrary commands to an estimated 15.5 million vehicles, including vehicles used by first responders, police, fire and so on. Hacks like this take place without any access to repair materials, nor is there any evidence that providing access to repair software will open the doors to new attacks. 50:05 Paul Roberts: For the last 25 years, Section 1201 of the Digital Millennium Copyright Act has given manufacturers an incentive to deploy software locks widely and to limit access to security researchers. That's kind of a model what we call in cybersecurity, security through obscurity. In other words, by keeping the workings of something secret, you're making it secure. But in fact, that doesn't work, because cyber criminals are very resourceful and they're very determined, and they don't really care what the law says. 50:35 Paul Roberts: Section 1201 has also enabled what one researcher has described as dark patterns in the design and manufacture of hardware that includes everything from locking out customers from access to administrative interfaces, administrative features of the products that they own, as well as practices like part pairing, which Kyle will talk to you more about, in which manufacturers couple replaceable components like screens and sensors and cameras to specific device hardware. Such schemes make manufacturers and their authorized repair providers gatekeepers for repairs, and effectively bar competition from the owners of the devices as well as independent repair providers. 54:45 Kyle Wiens: You think about what is local? What is American? Main Street you have a post office and a repair shop. And unfortunately, we've seen the whittling down of Main Street as the TV repair shops went away when the manufacturers cut off access to schematics, as the camera repair shops went away when Nikon and Canon decided to stop selling them parts. We've seen this systematically across the economy. In the enterprise space, you have Oracle and IBM saying that you can't get security updates to critical cyber infrastructure unless you buy a service contract with them, so they're tying long term service contracts with the security updates that are necessary to keep this infrastructure secure. 56:45 Kyle Wiens: Over the last decade plus, I've been working on Section 1201, trying to get exemptions for the ability to repair products. The challenge that we've had in the section 1201 process every triennial I go back and we ask for permission to be able to fix our own things is that the exemptions we've gotten really only apply to individual consumers. They aren't something that I could use to make a tool to provide to one of you to fix yourself. So in order for someone to take advantage of a 1201 exemption that we have, they have to be a cybersecurity researcher and able to whittle their own tools and use it themselves, and that just doesn't scale. 57:45 Devlin Hartline: My name is Devlin Hartline, and I'm a legal fellow at the Hudson Institute's forum for intellectual property. 57:50 Devlin Hartline: I'd like to start with a question posed by the title of this hearing, is there a right to repair? And the answer is clearly no. A right is a legally enforceable claim against another, but the courts have not recognized that manufacturers have the duty to help consumers make repairs. Instead, the courts have said that while we have the ability to repair our things, we also have the duty not to infringe the IP rights in the process. So it is in fact, the manufacturers who have the relevant rights, not consumers. 58:30 Devlin Hartline: Right to repair supporters want lawmakers to force manufacturers to make the tools, parts, and know-how needed to facilitate repairs available to consumers and independent repair shops. And the assumption here is that anything standing in the way of repair opportunities must necessarily harm the public good, but these tools, parts and know-how, are often protected by IP rights such as copyrights and design patents. And we protect copyrighted works and patented inventions because, as the Constitution recognizes, this promotes the public good. We reward creators and innovators as an incentive for them to bring these things to the marketplace and the public benefits from the introduction of new products and services that increase competition. Thus, the right to repair movement isn't based on a pre-existing right. It's instead asking lawmakers to create a new right at the expense of the existing rights of IP owners. 1:00:45 Devlin Hartline: IP owners are merely exercising their federally protected IP rights, and this is not actionable anti-competitive conduct. It is instead how the IP system is supposed to work. We grant IP owners exclusive rights so they can exclude others, and this, in turn, promotes the investments to create and to commercialize these creative innovations in the marketplace, and that promotes the public good. Aaron Perzanowski: My name is Aaron Perzanowski. I am a professor of law at the University of Michigan, and for the last 15 years, my academic research has focused on the intersection of personal and intellectual property rights in the digital economy. During that time, the right to repair has emerged as a central challenge to the notion that we as consumers control the devices that we buy. Instead consumers, farmers, small businesses, all find that manufacturers exert post-sale control over these devices, often in ways that frustrate repair. Aaron Perzanowski: Repair is as old as humanity. Our Paleolithic ancestors repaired hand axes and other primitive tools, and as our technologies have grown more complex, from the Bronze Age through the Renaissance, to the high tech devices that we all have in our pockets here today, repair has always kept pace. But today, manufacturers are employing a range of strategies that restrict repair, from their hardware and software design choices to clamp downs on secondary markets, and we also troublingly see attempts to leverage IP rights as tools to restrict repair. These efforts are a major departure from the historical treatment of repair under the law, the right to repair is not only consistent with nearly two centuries of IP law in the United States, it reflects half a millennium of common law property doctrine that rejects post-sale restrictions on personal property as early as the 15th century. English property law recognized that once a property owner sells an item, efforts to restrain how the new owner of that item can use it are inconsistent with the essential nature of private property and obnoxious to public policy. As the Supreme Court has repeatedly recognized, IP laws' respect for the property interests of purchasers of copyrighted and patented goods was profoundly shaped by this common law tradition. In 1850, the Supreme Court recognized that the repair of a patented machine reflected "no more than the exercise of that right of care, which everyone may use to give duration to that which he owns." A century later, the Court held that the repair of a convertible car roof was justified as an exercise of "the lawful right of the property owner to repair his property." And just a few years ago, the court reaffirmed the rejection of post-sale restrictions under patent law in Impression Products vs. Lexmark, a case about refurbishing printer ink cartridges. Copyright law, not surprisingly, has had fewer occasions to consider repair restrictions. But as early as 1901, the Seventh Circuit recognized "a right of repair or renewal under US copyright law." When a publisher sued to prevent a used book dealer from repairing and replacing damaged components of books, the court said that "the right of ownership in the book carries with it and includes the right to maintain the book as nearly as possible in its original condition." A century after that, Congress itself acknowledged repair as a right that owners enjoy, regardless of copyright restrictions, when it enacted section 117 C of the Copyright Act. That provision was designed to undo a Ninth Circuit decision that allowed copyright holders to prevent third party repairs of computers. Section 117 C explicitly permits owners of machines to make copies of computer programs in the course of maintenance or repair. And finally, the US Copyright Office over the last decade has repeatedly concluded that diagnosis, repair, and maintenance activities are non-infringing when it comes to vehicles, consumer devices, and medical equipment. So the right to repair is firmly rooted in basic principles of US IP law. Aaron Perzanowski: Section 1201 of the DMCA makes it practically impossible for consumers to exercise their lawful right to repair a wide range of devices, from tractors to home electronics, even though the copyright office says those activities are not infringing, and the weakening of standards for design patents allow firms to choke off the supply of replacement parts needed to repair vehicles, home appliances, and other devices. Aaron Perzanowski: One way to think about a right is as an affirmative power to force someone else to engage in some behavior, and in some cases, that is what we're talking about. We're talking about imposing, especially on the state level, regulations that impose requirements on manufacturers. I think that's true of the Repair Act on the federal level as well. But, I think part of what we also need to keep in mind is that sometimes what you need to effectuate a right is to eliminate barriers that stand in the way of that right. So we can think about this, I think, helpfully in the context of tools that enable people to engage in repair. The state level solution has been to require manufacturers to give their own tools to repair shops, sometimes compensated under fair and reasonable terms. The other solution would be to change section 1201 to say, let's allow independent repair shops to make their own tools. I think both of those solutions have some value to them. I also think it's really important to keep in mind that when we're talking about IP rights, there are always multiple sets of interests at stake, and one of the key balances that IP law has always tried to strike is the balance between the limited statutory exclusive rights that the Patent and Copyright Acts create and the personal property rights of consumers who own these devices. And so I think a balancing is absolutely necessary and appropriate. 1:15:20 Aaron Perzanowski: I think the best solution for Section 1201 is embodied in a piece of legislation that Representatives Jones and Spartz introduced in the last Congress, which would create a permanent exception to Section 1201 for repair that would apply not only to the act of circumvention, but would also apply to the creation and distribution of tools that are useful for repair purposes that does not open the door to broad, unrestrained, creation of circumvention tools, but tools that are that are targeted to the repair market. 1:16:40 Devlin Hartline: He cited a case about where you can repair a cover on a book. That's very different than recreating the book, every single word in it, right? So there's a difference between repairing something and then crossing the line into violating the exclusive rights of IP owners in the patented product or the copyrighted book. And so the things that repair supporters are asking for is that, if somebody has a design patent that covers an auto body part, well, they have the right to exclude other people from making that part, but repair supporters say they shouldn't have that exclusive right, because, you know, we could increase competition if we just took away their design patent and now other people could make that part, and so that's competition. But that's not the type of competition that IP law and competition law seek to support. That's like saying, if we just let the Pirate Bay copy and distribute all of the Disney blockbuster movies, then that's competition, and prices would go down. But that's not the way that we do it, right? So competition means other people come up with new products and new services, and so that's what we should be trying to support. 1:26:45 Rep. Jerrold Nadler (D-NY): Repair advocates argue that section 1201, prevents non-infringing circumvention of access controls for purposes. But Congress contemplated this use when it passed the DMCA in 1998, allowing for a triennial exemption process. Is the exemption process working as intended? And if not, are there actions Congress can take to expand exemptions or make them easier to acquire? Devlin Hartline: What's important about the triennial rulemaking is that the proponent of an exemption has to come forward with evidence and demonstrate that there's actually a problem and it relates to a certain class of works, and then they can get a temporary exemption for three years. And so it is true that the Librarian of Congress, the last few rulemakings, has said that because using a copyrighted work in a way for repair, maintenance, etc, is Fair Use that they grant these exemptions. But these exemptions are quite narrow. They do not allow the trafficking of the computer programs that can crack the TPMs. And so it's very narrowly done. And the concern is that if you were to create a permanent exemption that opens things all the way up with access controls, copy controls and trafficking thereof, is now you're getting to the point of why we even have these TPMs under 1201 in the first place, and that's because they guard against piracy. And so the concern is that you're opening the piracy floodgates. You make these devices less secure, and then content owners are going to be less likely to want to put their content on these devices. Rep. Ben Cline (R-VA): How does section 1201 of the DMCA impact the ability of consumers and independent repair shops to modify or repair devices that have proprietary software and data in the consumer electronics industry? Aaron Perzanowski: Thank you so much for the question. As we've been talking about the copyright office in 2015, 2018, 2021, and they're in the process for the current rulemaking, has determined that engaging in circumvention, the removal or bypassing of these digital locks for purposes of repair, is perfectly lawful behavior, but there is a major practical mismatch here between the legal rights that consumers enjoy under federal law today and their practical ability to exercise those rights. And that's because, as Devlin was just describing, the section 1201 rulemaking does not extend to the creation or distribution of tools, right? So I have the right under federal law, to remove the technological lock, say, on my video game console, if I want to swap out a broken disk drive. How do I do that? I'd like to think of myself as a pretty technologically sophisticated person. I don't have the first clue about how to do that. I need a person who can write that code, make that code available to consumers so that I can. All I'm trying to do is swap out a broken disk drive on my video game. But you would argue that code is proprietary, correct? So I'm talking here about a third party making their own code that is simply allowing me to engage in activity that the Copyright Office has repeatedly said is non-infringing. Rep. Ben Cline (R-VA): So you want to give them a map. Is that, essentially, what you're saying? Aaron Perzanowski: Absolutely, yes, I do. Rep. Ben Cline (R-VA): Do trade secrets play a role in the right to repair debate? Aaron Perzanowski: There are occasions where trade secrets are important. I don't think in the context that we're talking about here with section 1201, that we're typically running into trade secret issues. The state-level bills that have been introduced do typically address trade secrets and often have carve outs there. And I think that's something worth considering in this debate. But I think it's important to keep in mind that just because we have some hypothetical worry about some unknown bad actor taking a tool that I use to fix my video game console -- Rep. Ben Cline (R-VA): It's not unknown. The Chinese do it all the time. Aaron Perzanowski: I don't think the Chinese are particularly worried about whether or not I can fix my video game console, and in fact, I think that point is important, but the bad actors already have these tools. All we're trying to do is get very targeted tools in the hands of law abiding citizens who just want to repair the stuff they buy for their kids for Christmas, right? If the Chinese are going to hack the PlayStation, they've already done it. 1:32:25 Aaron Perzanowski: So the 1201 process is what established the legality of circumvention for repair purposes. But when Congress created that rulemaking authority, it only extends to the act of circumvention, the actual removal. Congress did not give the [Copyright] Office or the Librarian [of Congress] the authority to grant exemptions to the trafficking provisions, and that's where I think legislative intervention is really important. 1:39:00 Kyle Wiens: One of the challenges was section 1201. It doesn't just ban repair tools, it also bans the distribution of cybersecurity tools. And so we've seen security researchers....Apple sued a company that made a security research tool under 1201 and that tool has markedly made the world more secure. It's very popular amongst government security researchers. So I think that's kind of the sweet spot is, allow some third party inspection. It'll make the product better. 1:41:25 Kyle Wiens: These ice cream machines are made by Taylor, and there is an incredibly complex, baroque set of touchscreens you have to go through. And then there's a service password you have to be able to get past in order to access the settings that really allow you to do what you want. And so, in an ideal world, you'd have an entrepreneur who would come along and make a tool to make it easier for McDonald's, maybe they could have an app on their phone that they could use to configure and help them diagnose and repair the machine. Unfortunately, the company who made that tool is struggling legally because of all these challenges across the board. If we had innovation outside of the manufacturers and to be able to develop new tools for fixing ice cream machines or anything else, you have a whole flowering ecosystem of repair tools right now. It doesn't exist. The US is like this black hole where innovation is banned in software repair. There's all kinds of opportunities I could see, I had a farmer ask me for help fixing his John Deere tractor, and I had to say, I can't do that particular repair because it's illegal. I'd love to build a cool app for helping him diagnose and fix his tractor and get back back in the field faster. We don't have that marketplace right now. It's like farmers have been forced to, like, use cracked Ukrainian versions of John Deere diagnostic software, right? Rep. Russell Fry (R-SC): So it's not just ice cream machines. I led off with that, but it's farmers, it's farm equipment, it's iPhones, it's somebody's Xbox, right? I mean, these are all things.... in your experience, what are the challenges that these customers and stakeholders face when they're trying to repair their own devices? What are some things that they face? Kyle Wiens: It's absolutely infuriating. So my friend, farmer in San Luis Obispo, Dave grows all kinds of amazing products. He has a $300,000 John Deere tractor, came to me and said, Hey, there's a bad sensor. It's going to take a week to get that sensor sent out from Indiana, and I need to use the tractor in that time. Will you help me bypass the sensor? I could hypothetically modify the software in the tractor to do that. Practically, I didn't have the legal ability, and so he had to go and rent an expensive tractor for the week. This is impacting people's lives every single day. 1:43:50 Rep. Russell Fry (R-SC): So, to pivot a little bit, what role do you see from a federal side, from legislation, and what specific measures do you think might be included in such legislation? Kyle Wiens: So we've seen the solutions being approached from two angles. At the state level, you have states saying John Deere and other manufacturers, if you have a dealership that has fancy tools, sell those tools to consumers and to independent shops, allow that competition. At the federal level, what we can do is enable a competitive marketplace for those tools. So rather than compelling John Deere to sell the tool, we can say, hey, it's legal for someone, an entrepreneur, to make a competing tool. And you have this in the car market. You can take your car down the AutoZone, you can buy a scan tool, plug it into your car, and it'll decode some of the error messages. Those tools exist on the auto market because we have a standard diagnostic interface on cars that you can access without circumventing a TPM. We don't have that for any other products. So another farmer in my town, he showed me how if he has a transmission go out on a truck, he can fix that. But if he has a transmission go out on his John Deere tractor, he can't. He can physically install the transmission, but he can't program it to make it work. I'd love to be able to make a software tool to enable him to replace his transmission. Aaron Perzanowski: So I think if we see passage of the SMART Act, we can anticipate significant reductions in the expenses associated with auto collision repairs. Estimates are that design patents on collision parts are responsible for about $1.5 billion in additional expenditures. We see price premiums on OEM parts over third party parts often reaching into like the 40% range, right? So these are pretty significant cost savings associated with that. Part of this problem, I think, does relate back to the kind of unique structure of this market. Most consumers are not paying out of pocket for collision repairs. Those costs are being covered by their auto insurance provider, and so the consumer doesn't see that the - I'm pulling this from memory, so don't hold me to this figure - but the side view mirror of a Ford Fiesta costing $1,500, that's not something that the consumer is confronted with, right? So this goes back to the question of notice. Do consumers know when they buy that vehicle that the repairs are going to be that expensive? I think in most cases, they don't. And so I think the SMART Act is a very targeted solution to this problem. I do think it's important to note that the design patent issue for replacement parts is not limited to the automotive industry. I think it's the most, I think that's the area where the problem is most pressing. But home appliances, consumer electronics, we see companies getting design patents on replacement water filters for refrigerators so that they can charge three times as much when the little light comes on on your fridge to tell you that your water might not be as clean as you want it to be. So I think we have to think about that problem across a range of industries, but the automotive industry, I think, is absolutely the right place to start. Paul Roberts: I mean, one point I would just make is that with the Internet of Things, right, we are facing a crisis in the very near future as manufacturers of everything from home appliances to personal electronics to equipment, as those products age and those manufacturers walk away from their responsibility to maintain them. So we're no longer supporting the software. We're no longer issuing security updates. Who will step in to maintain those devices? Keep them secure, keep them operating right? The manufacturers walked away. Do we just get rid of them? No, because the equipment still works perfectly. We're going to need a market-based response to that. We're going to need small businesses to step up and say, hey, I'll keep that Samsung dishwasher working for another 20 years. That's a huge economic opportunity for this country, but we cannot do it in the existing system because of the types of restrictions that we're talking about. And so this is really about enabling a secure future in which, when you buy a dishwasher with a 20 year lifespan, or 25 year lifespan, it's going to last that 25 years, not the five to six years that the manufacturer has decided, you know, that's how long we want to support the software for. Paul Roberts: My understanding is the use of design patents has increased dramatically, even exponentially, in the last 10 to 15 years. If you go back to the 90s or 80s, you know, parts makers, automakers were not applying these types of patents to replaceable parts like bumpers and rear view mirrors. Somebody had a business decision that, if you can do so, then we can capture more of that aftermarket by outlawing identical aftermarket replacements that has a huge downstream impact on car owners and on insurers and on all of us. 2:10:15 Paul Roberts: Both of the things that we're really proposing or talking about here, which would be changes to Section 1201 of the DMCA as well as passage of robust right to repair laws, would empower a market-based response to keeping the internet of things working, secure and functioning. DMCA 1201 reforms by making it clear that you can circumvent software locks for the purpose of repair and maintenance and upkeep, right? So that would take the threat of the federal crime away from small business owners as well as security researchers who are interested in, you know, plumbing that software for purposes of maintenance, upkeep and repair. And on the right to repair by making the tools available to maintain and upkeep products - diagnostic software, schematic diagrams, service manuals - available. Once again, you'll be empowering small business owners to set up repair shops and say, I'm going to keep your smart appliance running for its full 25 or 30 year lifespan, and I'm going to support my family doing that locally, and not be basically choked out of business by a company that says, Well, you don't have the right to access this product. From a cybersecurity perspective, that is really important, because one thing we don't want is a population of millions or tens of millions of out of date, unsupported, unpatched, insecure internet connected home appliances, webcams, home routers out there available to nation state actors, cyber criminal groups, to compromise and use for their own purposes. And that's something we already see, particularly around broadband routers and other types of devices, and it's a real threat going forward that I think this type of these types of changes would support. Aaron Perzanowski In a lot of instances, this conversation, and we've touched on this earlier, focuses on cost savings, right? And cost savings are an important consideration, right? Farmers aren't thrilled that they have to pay a technician from the John Deere dealer to drive maybe hours to get to their farm and connect their laptop and, you know, download these payload files to enable their equipment to work. But in the agricultural space, the thing I hear most often in the conversations I have with farmers is and Kyle touched on this a bit earlier, is a real concern about the time sensitivity of their work. If your tractor is out of commission for a week or two in the wrong part of the season, that is going to have disastrous effects, right, not only on that farm's economic outlook, but collectively, it can have an impact like, not to be hyperbolic here, but on our national food supply, and so I think it's really important that farmers have flexibility in terms of where and how they execute repairs, so that they can get their equipment back up and running. If my laptop breaks and I can't get it fixed for a week or two, I'm annoyed there will be emails that go unanswered, but like the world will continue to spin. That is not the case in the agricultural space where we, I think, have to be much more concerned. Rep. Darrell Issa (R-CA): If I remove from my BMW, at least during certain models, I remove the radio, unplug it, and then plug it back in, simply because I was fiddling around with the dash, I now have to go back to the dealer to reinstall it. Similarly, the transmission example. I've got two John Deere tractors. One's got a busted engine, the other's got a busted transmission. Currently, they will prohibit you from moving the transmission from one to the other. From a standpoint of intellectual property, where, in God's green earth or the Constitution, are any of those designed to be rights that belong to the manufacturer, rather than rights that belong to the owners of those two John Deere tractors? Devlin Hartline: So those are a bunch of different situations, and so I think there would be underlying facts that differ with each right. So we started on the iPhone, and I was going to point out that iPhone will actually give you the tool to synchronize it. In those other situations, I don't know the business justification for it. How is that an IP problem? Right? So if that's locked up with the TPM, and you have to bypass the TPM, well then that's a violation of 1201, so that's how they can that's how they can lock -- Rep. Darrell Issa (R-CA): So what you're saying is that Congress has created impediments to the right to repair. Mr. Roberts, would you say that is correct? That, in fact, the right to repair, were Congress never to have done anything since, you know, George and Thomas were our presidents, so to speak, knowing those two presidents, we'd be able to do things we're not able to do because they're now prohibited by acts of Congress. Paul Roberts: Yes, and we certainly know going back to the 50s, 60s, 70s, there was a much more you know....First of all, companies would ship products with service and repair manuals with detailed schematic diagrams with the understanding that owners would want to replace and service them. And what I would say is, yes, absolutely. I doubt very much. And I know we had members who were here in 1998 authoring the DMCA. I think if you had said to them, in 25 years time, this law will be used to prevent somebody with a broken dishwasher from getting that serviced by their local repair shop or by for fixing it themselves, this law will prevent them from doing that, I doubt very much they would have said, yeah, that's pretty much what we want. Rep. Darrell Issa (R-CA): Well, I will tell you that the I was the chairman of what is now the Consumer Electronics Association in 1998 and we did predict a lot of these items were going to be expanded beyond the scope of the original. Paul Roberts: Right now this is not an urgent issue, because most of the cars out there are older vehicles. As we move forward, as telematic systems evolve, as automakers continue their trend of moving more and more information to telematic systems, this is going to become a bigger problem. I'll point out another problem, which is the Massachusetts law is contingent on data transfers of diagnostic and repair information via the OBD or onboard diagnostic two port under the dashboard. That's only there because of federal Clean Air law. Electronic vehicles don't have that port because they don't have emissions, and so in the very near future, as we shift to electronic vehicles, that data access port will no longer be there. It will all be telematics data, and so the utility of the Massachusetts law is going to decline over time, going forward. And again, I you know, when you start talking about right to repair, you become like this crazy person who talks about right to repair every time it comes up. But one thing I try and stress to people when I talk to them about auto repair is, if you live in Michigan or California and you have taken your vehicle to the local independent repair shop, you have only done that because the voters in Massachusetts passed a ballot measure over a decade ago and then updated it in November 2020. That is the very thin thread that our right to use independent auto repair hangs by in this country. That's not the way it's supposed to be. This is something that affects vehicle owners, hundreds of millions of them in all 50 states. And it's a type of thing that the federal government needs to address with federal legislation. It should not hang by this very thin thread. 2:30:20 Rep. Hank Johnson (D-GA): Are software updates new creations, and thus copyrightable? Devlin Hartline: Software updates, yeah, they're computer programs, and so Congress said explicitly in 1980, but it was understood before then, that computer programs are literary works and they're protected, just like any other copyrighted work. Rep. Hank Johnson (D-GA): Thank you, Professor Perzanowski, do you disagree? Aaron Perzanowski: I don't disagree at all that software updates are protectable subject matter under the Copyright Act. But what I think is important to keep in mind right is the Copyright Act and copyrights exclusive rights, and all of the exceptions and limitations to copyrights exclusive rights are created by Congress, and so if you think those rights are interfering with other important issues and concerns, then I think Congress clearly has the power to make changes to the copyright law in order to best serve what you ultimately determine to be in the public interest. 2:35:30 Aaron Perzanowski: Access to firmware and other code is really essential to the functioning and repair of lots of devices. I think there's some important differences between the standard essential patent context and kind of what we're talking about here in that in the standard essential patent context, we're relying on standard setting bodies to identify technologies and to require companies to license their patents under fair, reasonable and non-discriminatory terms. We don't quite have that infrastructure in place in the copyright context, but what we do have are compulsory licenses that exist within the Copyright Act already, one of which you were alluding to earlier, the mechanical license for musical works. We also have compulsory licenses for retransmissions of satellite and broadcast content that essentially say the copyright owner is entitled to compensation of some form, but they're not entitled to prevent people from using or accessing that underlying work, and I think that could be a useful framework here for getting owners of devices access to the firmware that they need. Music by Editing Production Assistance
On the ground coverage of the Democratic National Convention, which was not as joyful and unified as the party wanted it to seem. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Ballot Deadline Reuters Fact Check. July 30, 2024. Reuters. Biden’s Speech: Stop Arming Israel Banner C-SPAN. Democracy Now! on YouTube. Rep. Ro Khanna on the Young Turks The Young Turks (@TheYoungTurks). August 23, 2024. AIPAC Spending Joan E Greve et al. April 22, 2024. The Guardian. Gaza Death Toll Malak A Tantesh and Emma Graham-Harrison. August 15, 2024. The Guardian. Harris Speech August 22, 2024. C-SPAN. Music by Editing Production Assistance
The Senate recently received testimony from the bipartisan co-chairs of the Commission on the National Defense Strategy, who were tasked with creating a report to Congress with recommendations needed to adapt our National Defense Strategy to current threats. In this episode, hear the testimony about that completed report during which they discuss preparations for a possible world war and the need for more American kids to fight and die in it. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Report Jane Harman et al. July 2024. Senate Committee on Armed Services. Jane Harman: Warmonger Open Secrets. October 10, 2002. Clerk of the U.S. House of Representatives. September 14, 2001. GovTrack. Iridium Communications April 2, 2024. wallmine. GuruFocus Research. March 8, 2024. Yahoo Finance. December 29, 2023. Market Screener. Bing. Iridium. Iridium. Iridium. Retrieved from the Internet Archive’s Wayback Machine version archived November 11, 2022. Axis of Aggression or Axis of Resistance? Angela Skujins. June 8, 2024. euronews. Nikita Smagin. June 15, 2023. Carnegie Politika. Defense Innovation Unit Defense Innovation Unit. Military Service Kristy N. Kamarck. December 13, 2016. Congressional Research Service. Christopher Hitchens. October 3, 2007. Vanity Fair. Mark Daily. Feb. 14, 2007. Los Angeles Times. Israel-Palestine Shay Fogelman. August 16, 2024. Haaretz. Steven Scheer and Ali Sawafta. August 14, 2024. Reuters. July 2, 2024. Al Mayadeen English. Steve Crawshaw. January 26, 2024. The Guardian. Patreon August 12, 2024. Patreon. C-SPAN Fundraiser C-SPAN. Bills: NDAA 2025 Audio Sources July 30, 2024 Senate Committee on Armed Services Witnesses: Jane M. Harman, Chair, Commission on the National Defense Strategy Eric S. Edelman, Vice Chair, Commission on the National Defense Strategy Clips 26:20 Sen. Roger Wicker (R-MS): The document details the way in which the 2022 National Defense Strategy and Assessment, completed just two years ago, did not adequately account for the threat of simultaneous and increasingly coordinated military action by our four primary adversaries. A group which I have come to call the Axis of Aggressors. Sen. Roger Wicker (R-MS): I appreciate the Commission's recommendation that national security spending must return to late Cold War levels — a goal which matches my plan to spend 5%, eventually, of GDP on defense. That level of investment would be temporary. It would be a down-payment on the rebuilding of our national defense tools for a generation. Tools that have sharpened can reduce the risk that our adversaries will use military force against US interests. 33:10 Jane Harman: The threats to US national security and our interests are greater than any time since World War II, and more complex than any threats during the Cold War. 34:00 Jane Harman: Sadly, we think, and I'm sure you agree, that the public has no idea how great the threats are and is not mobilized to meet them. Public support is critical to implement the changes we need to make. Leaders on both sides of the aisle and across government need to make the case to the public and get their support. Eric Edelman: There is potential for near-term war and a potential that we might lose such a conflict. The partnership that's emerged among China, Russia, Iran, and North Korea is a major strategic shift that we have not completely accounted for in our defense planning. It makes each of those countries potentially stronger militarily, economically, and diplomatically, and potentially can weaken the tools we have at our disposal to deal with them. And it makes it more likely that a future conflict, for instance, in the Indo-Pacific, would expand across other theaters and that we would find ourselves in a global war that is on the scale of the Second World War. Eric Edelman: The 2022 NDS identified China as the pacing challenge. We found that China is, in many ways, outpacing the US. While we still have the strongest military in the world with the farthest global reach, when we get to a thousand miles of China's shore, we start to lose our military dominance and could find ourselves on the losing end of a conflict. China's cyber capabilities, space assets, growing strategic forces, and fully modernized conventional forces are designed to keep us from engaging in the Taiwan Strait or the South or East China seas. China, as has been testified to before Congress, has infiltrated our critical infrastructure networks to prevent or deter US action by contesting our logistics, disrupting American power and water, and otherwise removing the sanctuary of the homeland that we have long enjoyed. 38:00 Eric Edelman: For its part, Russia has reconstituted its own defense industrial base after its invasion of Ukraine much more rapidly than people anticipated. Vladimir Putin seeks to reassert Russia as a great power and is happy to destabilize the world in order to do so. 38:15 Eric Edelman: Our report describes the threats posed by Iran, North Korea, and terrorism as well. Clearly, Iran and North Korea both feel emboldened by the current environment, and terrorism remains a potent threat fueled by the proliferation of technology. As the DNI has said, the current war in the Middle East is likely to have a generational impact on terrorism. 39:20 Jane Harman: First finding: DoD cannot and should not provide for the national defense by itself. The NDS calls for an integrated deterrence that is not reflected in practice today. A truly all elements of national power approach is required to coordinate and leverage resources across DoD, the rest of the Executive branch, the private sector, civil society, and US allies and partners. We agree with the NDS on the importance of allies, and we commend the administration for expanding and strengthening NATO and building up relationships and capabilities across Asia. We also point out ways for the United States to be better partners ourselves, including by maintaining a more stable presence globally and in key organizations like NATO. We call for reducing barriers to intelligence sharing, joint production, and military exports so we can better support and prepare to fight with our closest allies. 40:25 Jane Harman: Second recommendation is fundamental shifts in threats and technology require fundamental change in how DoD functions. This is particularly true of how DoD works with the tech sector, where most of our innovation happens. We say that DoD is operating at the speed of bureaucracy when the threat is approaching wartime urgency. DoD structure is optimized for research and development for exquisite, irreplaceable platforms when the future is autonomy, AI and large numbers of cheaper and attritable systems. I know this because I represented the Aerospace Center of Los Angeles in Congress for so many years, where exquisite, irreplaceable satellite platforms were built. And now we know that there is a plethora of commercial platforms that can do many of the same things and offer redundancy. DoD programs like Replicator and the Defense Innovation Unit and the Office of Strategic Capital are great, but they're essentially efforts to work around the larger Pentagon system. 42:00 Eric Edelman: Mr. Wicker, you raised the issue of the foresizing construct in your opening statement, and we, as you noted, found that it is inadequate. I mean, it was written actually before the invasion of Ukraine and before the emergence of this tightening alliance between Russia and China. And we propose that the force needs to be sized, the joint force, in conjunction with US allies and partners, to defend the homeland, but simultaneously be able to deal with threats in the Indo-Pacific, Europe, and the Middle East. These are not all the same fights, so different elements of the force would be required in different parts of the globe, but US global responsibilities require a global military response as well as a diplomatic and economic one. 43:20 Eric Edelman: The DoD workforce and the all-volunteer force provide us with a kind of unmatched advantage, but recruiting failures have shrunk the force and have raised serious questions about the sustainability of the all-volunteer force in peacetime, let alone if we had to mobilize for a major conflict or a protracted conflict. 44:30 Jane Harman: Additionally, we think that Congress should revoke the 2023 spending caps and provide real growth — I know Senator Wicker loves this one — for fiscal year 2025 defense and non-defense national security spending that, at a bare minimum, falls within the range recommended by the 2018 NDS Commission. That range was never achieved. Subsequent budgets will require spending that puts defense and other components of national security, other components jointly across government and the tech sector and partners and allies, on a glide path to support efforts commensurate with the US national efforts seen during the Cold War. Jane Harman: We agree on a unanimous basis that the national debt is its own national security challenge. If we want to approach Cold War levels of spending, we need to increase resources and reform entitlement spending. 45:40 Jane Harman: During the Cold War, top marginal income tax rates were above 70% and corporate tax rates averaged 50%. We don't call for those numbers, but we are calling for an increase in resources and point out that interest on the debt is higher than our total top line of defense spending. 49:55 Jane Harman: The notion of public service isn't new as you know, Mr. Chairman, it's been around for years. It was around when I served in Congress, and Congress did not act on any of the proposals that I saw. It is still a way to get all of the public, at the proper age, engaged in understanding the requirements of citizenship. A lot of our young people have no earthly idea, sadly, because they have no civic education, what our government really is and what are the ways to serve. And surely one of the most honorable ways to serve is as a member of the military, you did it, and other members of this committee have done this. And I think that is the way to revive a kind of sense of coherence and patriotism that we are lacking right now. Eric Edelman: We have not really, as a society, talked about the need for national mobilization, but if the worst were to happen and some of the worst scenarios we discuss in our report were to come to pass and were we to face a global conflict, it would require mobilization on the scale of what we did as a nation during World War II. And we haven't done that in a long time. We haven't thought about that in a long time. There are a lot of elements to it, including stockpiling strategic materials, but being able to rapidly bring people into the military, et cetera, I just don't think we are prepared to do it. I think we have to have a national discussion about this, and I think it goes hand in hand with the earlier discussion you had with my colleague about public service and serving the nation. 52:05 Sen. Jack Reed (D-RI): We had in World War II, two years, essentially from September 1st, 1939 to December 7th, 1941, to prepare. And I doubt we'll have two years to prepare in this environment. Eric Edelman: President Putin, in some ways, has done us a bit of a favor by having invaded Ukraine and exposed, as a result, some of the limitations of US defense industrial production, and shown that it's grossly inadequate to provide the equipment, technology, and munitions that the US military and our allies and partners need today, let alone given the demands of a potential future conflict, which might be even more taxing. Jane Harman: I remember being a member of the Defense Policy Board when Jim Mattis was Secretary of Defense, and his piece of advice to us was, let's do everything we can to keep Russia and China apart. Well, oops, that has not happened. And there is this close friendship and collaboration between them. You asked how is it manifested? Well, we see it most at the moment in Ukraine, where Russia was the aggressor violating international law and invading Ukraine, and China is a huge help to Russia in evading our sanctions by buying Russian gas and by its efforts to ship into China material for the war. And then you add in, as you mentioned, Iran and North Korea, which are suppliers of drones and other lethal material to Russia. And this unholy alliance, or I think you call it Alliance of Aggression, is extremely dangerous. Let's remember that both North Korea has nuclear weapons, Iran is at breakout for nuclear weapons, and the other two countries are nuclear countries. And where this goes is, it seems to me, terrifying. And that is, again, why we need to leverage all elements of national power to make sure we deter these countries from acting against us. Eric Edelman: Ukraine offered to give up, and I was involved in some of the diplomacy of this back in the nineties, the nuclear weapons that were left on its territory after the end of the Soviet Union. As a result of that, Ukraine gave them up, but in exchange for assurances from the United States, Russia, Great Britain and France, that its territorial integrity would be recognized along the borderlines that existed before the 2014 seizure of Crimea by Putin, which was a violation of those undertakings. If our assurances in the non-proliferation realm in this instance are shown to be hollow, it will raise questions in the minds of all of our allies about the assurances we've given them, our extended deterrent assurances, whether it's for our allies in Europe, part of our multilateral NATO alliance, or our bilateral allies in East Asia, or our partners, parts of special relationships we've developed in Middle East with Israel, the Kingdom of Saudi Arabia, the UAE, and Egypt and others. So the whole fabric, frankly, of the international order is at risk here, depending on the outcome in Ukraine. And to your point, if Putin is successful in Ukraine, the lesson that Xi Jinping is likely to draw is that he too can be successful in Taiwan or in the East China Sea or the South China Sea. Eric Edelman: Nuclear deterrence, Senator Fisher, is the fundamental on which everything else is built in terms of our national security. It's operating every day. It's not visible to American citizens, but the fact of our nuclear deterrent force, all three legs of the triad being available is the most powerful deterrent that we have to conflict. It's not sufficient, but it is the absolute basis, and we really, I think, agreed with the conclusion our colleagues on the Strategic Posture Commission reached, which is that we have to move forward with alacrity on all the elements of modernization of the nuclear triad. That's the GBSD Sentinel Program, that is the B-21, that is the Ohio replacement class. All of those things have to be accomplished and there are problems. One of the reasons we highlighted education is that some of the problems that GBSD are running into have to do with lack of skilled workers to be able to pour the kind of special reinforced concrete that you need for the new silos for missiles, the new control systems for missiles. We lack welders in the submarine industrial base, as Senator Wicker knows well. So there's a lot that has to be done across the board in order to move forward with nuclear modernization, but it is absolutely fundamental to our ability to deter aggression against our allies and of course against the homeland. Eric Edelman: The force right now is too small, and so we have to grow the force, and that's in the face of the recruiting challenges that we've highlighted in the report that the Army in particular, but also the Navy and the Air Force have faced. Sen. Deb Fischer (R-NE): And I'm going to interrupt you. Please. Why is it too small? Can you explain in this setting the threats that we are facing when we look at the adversaries that we face and how that has changed over the last decade? Eric Edelman: It's too small, in part because the Department was sizing itself for one conflict. But if you have to be present in three theaters, as we are now, we've got conflicts in two theaters now, if we have a third conflict in the third theater, it's going to require a lot more forces. People talk, for instance, about the Indo-Pacific being largely a Navy and Air Force fight. That's correct, but the logistics that support the Navy and the Air Force will largely be manned by the Army. And so we have to have an Army that is sufficiently large that it can operate in all of these places, potentially simultaneously, because honestly, it is very hard to imagine today a conflict in the Indo-Pacific that doesn't become a global conflict very quickly. Someone asked earlier in the hearing about cooperation between Russia and China. The last time I testified before this committee was two years ago about the so-called "Three Body Problem," Russia and China being both nuclear peers of the United States. And one of the criticisms that was leveled at my colleague, Frank Miller and me, was that, well, there's no evidence that Russia and China are collaborating in the nuclear area. Well, we just saw them flying strategic bombers together up near Alaska, so I don't know what more evidence you want that they're beginning to collaborate in that strategic area. Eric Edelman: If we got into some kind of conflict in the Indo-Pacific, whether it be over Taiwan or the South China Sea or East China Sea, what might Russia do? One thing that comes to mind is take advantage of the separatist movement in Moldova to move on Moldova, a country that's trying to move closer to the European Union and to the West, which would then precipitate additional conflict in Europe, or take advantage of the ethnic Russian speaking minorities in the Baltic states, say Latvia, to initiate a conflict there. How would we manage that? When you raise that question with Department [of Defense] leaders, they basically say, well, that — to go back to the chairman's point earlier — well that would be sort of like World War II or would require national mobilization, and that's correct, but we haven't really taken the next steps to really focus on what that and what a protracted conflict would actually look like. We're optimized to fight very short wars. 1:21:00 Sen. Mike Rounds (R-SD): There are five different domains in which our country will be attacked in the future. Air, land, and sea, most people would understand, but space and cyberspace are the new domains, which will precede any attack on the first three. Jane Harman: On cyber, it's a huge threat and I don't think we minimize it in any way. One of the things we might anticipate, for example, is if China decides to annex Taiwan, or whatever euphemism they might use, they might engage in a major cyber attack here first, for which we are under-prepared, a cyber attack of our infrastructure. When I was in Congress, I represented the Port of Los Angeles, which with the Port of Long Beach is the largest container port complex in the country. 50% of our container traffic enters and exits through those ports. There are cranes on the port to move the cargo, and those cranes have Chinese technology. So guess what? Sen. Mike Rounds (R-SD): All of which are subject to the possibilities of cyber attack. Jane Harman: Absolutely. We should anticipate that our ports could go down. Sen. Mike Rounds (R-SD): Throughout our entire society, we find that to be the case though. Jane Harman: I'm agreeing with you and this is devastating. Does the American public understand this? No. Jane Harman: You also mentioned space. Again, something I know something about, since I used to call my district the aerospace center of the universe, where most of our intelligence satellites were made. We are more dependent on space as a country and more vulnerable in space because of that dependency than any other country. Shoring up space, which is one of the threats we address, is absolutely crucial. And it's not just military space, but commercial space. You talked about communication. A lot of how we communicate is through commercial space and think how inconvenienced the public would be if all of a sudden their little devices, which we're all dependent on, didn't work. Sen. Tommy Tuberville (R-AL): What's hurting us too is a lot of our government schools, I call 'em government schools because I went in thousands of them while I was coaching, recruiting, and the problem we have is hate that's being taught in a lot of our government schools, towards our country. Why would any young man or woman want to fight for a country that they don't believe in, that they're being taught to hate? It's absolutely amazing to me the direction this country is going. So is there any agreement there, Representative Harman? Jane Harman: There is agreement there. I think hate on both sides is totally destructive. I think the absence of civics education and the absence of institutions that help people understand what patriotism means. We had a conversation about national service, which might be a way to get all of our youth back together. I mean, this country sadly, is in a point where many people say our biggest enemy is us fighting each other. 1:33:35 Jane Harman: One of the problems is the kind of deployments the military does every two years. Moving somewhere where in many cases the spouse works and having to change his or her job every two years is very burdensome. It's also hard on kids, and so that could change. 1:36:20 Eric Edelman: The BRICS was actually kind of an invention of Goldman Sachs. It's not really a serious military organization. Jane Harman: But I think that Congress is somewhat complicit in the way the budget process doesn't work, and this insistence on requirements and oversight rather than on what is the problem set we are solving for, which is how the tech sector thinks. I've been making a comment about DIU, the Defense Innovation Unit, that was set up by the late Secretary Ash Carter, that maybe we should outsource the Pentagon to DIU, which is ably headed by someone named Doug Beck, who had 11 years experience in the private sector, because they know how to think about this. I couldn't agree with you more. The budget of DIU is $1 billion out of $850 billion. Doug Beck says he can leverage that. Sen. Angus King (I-ME): It's technologies that win wars, new technology, right? Jane Harman: I'm in violent agreement with you. He says he can leverage that into $50 billion of commercial investment, but that's still a pittance compared to the kind of change we need to undergo. Not just at the Pentagon, but at the Pentagon lashed up with other government agencies, with the tech sector, and with partners and allies. That is our point about all elements of national power, which will win the next war. 1:42:55 Sen. Tom Cotton (R-AR): Ambassador Edelman, you spoke with Senator Fischer about the multiple theater force construct. Basically the kind of threats we're planning for, and there's a time when this nation planned to fight two major wars at a time, and I think now we're down to a force that can fight one conflict and protect our homeland, and hopefully scare bad guys everywhere else around the world and not starting war. Is that right? Eric Edelman: That is correct. That's what the 2022 NDS describes. Sen. Tom Cotton (R-AR): So that's what our national Defense Strategy says. Is the current force even capable of doing that, in your opinion? Putting aside what it should be capable of doing, which I'll come to momentarily. Can it even do that? Eric Edelman: I think there are very serious questions about whether the force in being could actually execute the strategy. Jane Harman: The word pivot probably should be retired. I don't think we can leave anywhere. I think we have to have an understanding of the threats against us, not just against regions, everywhere. The whole idea of this multiple force construct is flexibility and having an adequate deterrence so we don't engage in more wars. Sen. Joe Manchin (D-WV): In your report you talked about the current force structure that we have, and I think you had identified that the Marines are only ones meeting that. We agree with that. What you failed to do is basically identify why we have not, or why you all did not, take up women being in selective service or joining selective service, because women make up 74% of the healthcare and education industry, 52% of financial activities. They're a tremendously strong force. And there's a lot of women I don't want to go up against. I can tell you that in so many ways. I guess my question is simple. Does the commission support women registering for selective service? Jane Harman: Well, I'll speak for myself. I do. I think that women are, a majority of our population, a majority of the talent pool, many of the most talented women serve on this committee. So yes, they should be. We should be. Sen. Joe Manchin (D-WV): I'll make it clear that what we talked about does not require women to participate in military draft. Jane Harman: I understand. It's registering. Sen. Joe Manchin (D-WV): Yeah, registering, that's all. Jane Harman: And my answer to that is yes. Eric Edelman: Our view was that you have to be able to deter and potentially defeat adversaries in all three of the main theaters that we have been engaged in since the end of the Second World War, and which we repeatedly engaged in. I mean, there's been no shortage of efforts to try and extricate the United States from the Middle East. The last NDS in 2018 said we should be willing to run risk in the Middle East. I think on October 7th we got a sense, and then again on April 13th, of what running additional risk means in the Middle East. So it's our view that we have to be able to manage to do all of those things. Eric Edelman: The homeland, if there's a conflict, is not going to be a sanctuary anymore. And the first attacks will likely be in the cyber domain, and they will be incredibly disabling for our society, but also for the department. But getting all of the agencies of government that would have a role in all this, because it goes beyond just DoD, it goes beyond just DHS, I mean, it goes to the Department of Transportation, it goes to Commerce. I mean, it's an unbelievably complex issue. And we're only now wrapping our minds around it and it needs a lot more work and attention from the department. Jane Harman: The public is essentially clueless about the massive cyber attacks that could be launched any day by our adversaries, not just nation states, but rogue actors as well. Music by Editing Production Assistance
When Congress returned to work after the Republican National Convention, the House held three hearings investigating the attempted assassination of former President Donald Trump. In this episode, hear for yourself the facts presented by the Director of the Secret Service, the Pennsylvania State Police Commissioner, and the FBI Director during their 15 hours of testimony. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Cheatle’s Failures Rep. James Comer and Rep. Jamie Raskin. July 22, 2024. House Committee on Oversight and Accountability. Julia Reinstein et al. July 16, 2024. ABC News. Would-be Assassin Emily Cochrane et al. July 19, 2024. The New York Times. Bernd Debusmann et al. July 19, 2024. BBC. Gaza Death Toll Rasha Khatib. July 20, 2024. The Lancet, Volume 404, Issue 10449. Audio Sources July 24, 2024 House Committee on the Judiciary Witnesses: Christopher Wray, Director, Federal Bureau of Investigation Clips Time stamps correspond to C-SPAN version 31:20 Christopher Wray: I'm told that the father purchased the firearm in 2013, so quite a while ago, and then he sold it to his son in October of 2023. 43:05 Christopher Wray: The reason why I've talked about how we think he got on the roof is that's based our evidence response to forensic analysis. Without getting into all the details, footprints, fingerprints, et cetera, that we can see how he got on. But we don't have an eyewitness at the moment who saw him climbing up. 43:25 Christopher Wray: A few minutes before the shooting, local law enforcement saw him on the roof. Again, no weapon identified at that point. A few seconds before the shooting is when the law enforcement officer that I've talked about already, the one who was assisted by another officer who saw up on the roof, saw the shooter in a prone shooting position with the gun. He turns… Rep. Barry Moore (R-AL): How long did that happen before? Christopher Wray: That sighting, that is the first time, to my knowledge, the first time anybody from law enforcement saw him with a weapon. That is seconds before he shot at President Trump. July 24, 2024 House Committee on the Judiciary Witnesses: Christopher Wray, Director, Federal Bureau of Investigation Clips Time stamps correspond to C-SPAN version 25:30 Christopher Wray: We have recovered eight cartridges on the roof. 28:05 Rep. Dan Bishop (R-NC): Have you developed any evidence to so suggest that there are any accomplices or cooperators or assisters? Christopher Wray: Not at this time, but again, the investigation is ongoing. 36:10 Christopher Wray: So we have recovered a drone that the shooter appears to have used. It's being exploited and analyzed by the FBI lab. The drone was recovered in his vehicle, so at the time of the shooting, the drone was in his vehicle with the controller. In addition, our investigation has uncovered -- Rep. Jim Jordan (R-OH): Do you know what time of day he flew it and if he flew it on the day of the shooting? Christopher Wray: So in addition, it appears that around 3:50-4:00PM, in that window, on the day of the shooting, that the shooter was flying the drone around the area. Rep. Jim Jordan (R-OH): Two hours before? Christopher Wray: I want to be clear about when I say the area, not over the stage and that part of the area itself, but I would say about 200 yards, give or take, away from that, we think, but we do not know. So again, this is one of these things that's qualified because of our ongoing review, that he was live streaming, viewing the footage from that. Again, about 11 minutes and around the 3:50-4:00 PM range. Rep. Jim Jordan (R-OH): Two hours before, he's flying a drone in the vicinity of the rally. Christopher Wray: About 200 yards away, yes. 37:25 Rep. Jim Jordan (R-OH): What about the bombs that we've heard about in the shooter's car? Christopher Wray: So again, the FBI lab is exploiting those explosive devices. We've recovered three devices, two in his vehicle and one back in his residence. Rep. Jim Jordan (R-OH): Are these what your experts would call sophisticated operations? I dunno. That's what I've been told by people who have some understanding of this area. Christopher Wray: Yeah, I think we've seen more sophisticated and less, I would say these are relatively, again, keyword relatively, crude devices themselves, but they did have the ability to be detonated remotely. And so to that point, in addition to the two devices that we recovered out of his vehicle, there were receivers for those two explosive devices with the devices. And then on the shooter himself, when he was killed by law enforcement, he had a transmitter with him. Now, I do want to add one important point here. At the moment, it looks to us, again, ongoing review, and I can't say that too many times, at the moment, it looks like because of the off position on the receivers, that if he had tried to detonate those devices from the roof, it would not have worked. But that doesn't mean the explosives weren't dangerous. 1:23:00 Christopher Wray: I think it's fair to say that we do not yet have a clear picture of his motive. 1:25:30 Christopher Wray: We located a number of firearms associated with the shooter and his family. I think it was a total of, I think 14 in the house. The weapon that he used for the attempted assassination was an AR-style rifle that was purchased legally that he, its my understanding, acquired, I think bought actually from his father, who was the one who originally bought it, again, legally. 1:46:20 Christopher Wray: So we do know that he purchased a ladder. I think if I recall correctly, it was about a five foot tall type of ladder. But importantly, we did not find the ladder at the scene. So it's not clear that he used the ladder to get on top of the roof. 1:52:40 Christopher Wray: The weapon had a collapsible stock, which could explain why it might've been less easy for people to observe, because one of the things that we're finding is people have observed him. The first people to observe him with the weapon were when he was already on the roof, and we haven't yet found anybody with firsthand observation of him with the weapon walking around beforehand. 1:54:00 Christopher Wray: There were no pictures or videos on the drone of the day of the rally, for example. But we have been able to reverse engineer the flight path of the drone from the day of the rally, and that's how we know that for about 11 minutes from, I think it's around 3:50 PM to 4:00 PM, somewhere in that range, he was flying the drone and we have the flight path, and it's about 200 yards away from where former President Trump would ultimately be speaking. And so that would've primarily given him a vantage point. I'm trying to think how to describe this. If the former President's podium is that way, the drone would be over here looking, say 200 yards again, off this way, looking back, so it would've shown the shooter -- we think, again, we're still doing more work on this. I really want to qualify what I'm saying, but I'm trying to be transparent and lean in here -- we think it would've shown him kind of what would've been behind him. Rep. Andy Biggs (R-AZ): When you say behind him, behind the shooter. Christopher Wray: Correct. In other words, almost like giving him a rear view mirror of the scene behind him, except again, he wasn't flying it overhead while he was later back for the assassination. Rep. Andy Biggs (R-AZ): But he would've had, with the drone, he would've been able to also assess, because the stage, I assume, was already set, he'd be able to assess that angle with rooftop as well, forward and backward, I assume. Christopher Wray: Well, certainly going towards the podium, again, we're still trying to figure out exactly what he saw, because having to, in effect, because there's no recording of what he saw during those 11 minutes, our hypothesis at this point, the experts think he would've been live streaming it, and so we're trying to, in effect say, okay, well this was the flight pattern. Given these capabilities of the drone, what would you have seen? What could you have seen for those 11 minutes? And again, it wasn't over the stage or kind of the hub of the rally. It was about 200 yards away, but it looks like it would've been looking, let's say, the length of a football field or so more towards the podium. 1:56:25 Christopher Wray: So again, with the caveat that we're continued to do work on it, we believe that the first time he traveled to the grounds was I think a week before and he spent roughly 20 minutes there. Then he went to the grounds again on the morning of the event. It appears for about 70 minutes, I think. But again, I qualify that. I'd have to go back and look to be sure of that part. And then he came back in the afternoon. So that would be, I guess a third time for good. But that included things like this drone activity we just talked about. 1:58:10 Rep. Adam Schiff (D-CA): Have you been able to gain access to the shooter's electronic communications, social media, and -- with the caveats that you mentioned that the investigation is still early -- have you been able to make any deductions or are there any indications of the shooter's motivation from those electronic holdings? Christopher Wray: So in terms of our ability to access it, we have been able to get into and exploit a number of electronic devices, digital devices, but not all of them yet. And then within his various accounts, we've been able to get access to some of them, but some of them we're still waiting on. Some of them we may never get access to because of the encryption issue. It presents an increasingly vexing barrier for law enforcement, not just the FBI, but for law enforcement all over the country. 1:59:30 Christopher Wray: It does appear fairly clear that he was interested in public figures kind of more broadly, and I think this is important, that starting somewhere around July 6th or so, he became very focused on former President Trump, on this rally. And so one of the things that I can share here today that has not been shared yet is that we've just in the last couple of days, found that from our review, to your point about devices, analysis of a laptop, that the investigation ties to the shooter reveals that on July 6th he did a Google search for "how far away was Oswald from Kennedy." And so that search obviously is significant in terms of his state of mind. That is the same day that it appears that he registered for the Butler rally. 2:15:30 Christopher Wray: So I know it was a Secret Service counter sniper who took the shot that eliminated the shooter. 2:15:50 Rep. Thomas Massie (R-KY): You mentioned that the would-be assassin bought a five foot ladder, you have credit card evidence of that. But it looks like on the scene there was a larger ladder that he might've used. Do you know which ladder he used to get to the roof? And do you have possession of that five foot ladder and the other ladder? And do you know how the taller ladder got to the scene? Christopher Wray: So this whole business about the ladder is something we're drilling into more. We do have possession of the five foot ladder that he purchased close in time to his attempted assassination that we've traced the purchase of that ladder from a receipt, a bloodied receipt that he had on him at the time his body was recovered on the roof. We do not yet know for sure how exactly he got up on the roof. We're looking at various forensic pieces to try to kind of piece that together. So more to come on that. Rep. Thomas Massie (R-KY): Do you know where the five foot ladder was found or retrieved? Was it near the roof or was it still in his vehicle? Christopher Wray: Neither. I don't have it in front of me, but I know that it was not, I know that it was not on scene and I know that it was not in his vehicle. 2:17:55 Christopher Wray: From everything we've seen, which is consistent with what we've learned in interviews, a lot of people describe him as a loner. That does kind of fit with what we're seeing in his devices. His list of contacts, for example, is very short compared to what you would normally see from most people. So it doesn't appear to be a whole lot of interaction between him, face-to-face or digital, with a lot of people. 3:00:50 Christopher Wray: We now believe that the subject climbed onto the roof using some mechanical equipment on the ground and vertical piping on the side of the AGR building. In other words, we do not believe he used a ladder to get up there. 3:07:25 Christopher Wray: He was a fairly, avid might be a little strong, but a fairly avid shooting hobbyist, and so he belonged to different clubs and went to certain ranges and that kind of thing. We do believe, based on what we've seen so far, that he went to a shooting range the day before and that he shot an AR-style rifle at that range the day before. I am not sure we know for sure that it's the weapon that he used, but I think we assessed that it probably is. July 23, 2024 House Committee on Homeland Security Witnesses: Colonel Christopher L. Paris, Commissioner, Pennsylvania State Police Patrick Yoes, National President, Fraternal Order of Police Clips Time stamps correspond to YouTube version 23:35 Rep. Mark Green (R-TN): Colonel Christopher Paris serves as the commissioner for the Pennsylvania State Police. In this role, he exercises command, administrative and fiscal authority over the Pennsylvania State Police, the 10th largest police agency in the United States. Commissioner Paris has served in the Pennsylvania State Police since his enlistment in 1999. 23:55 Rep. Mark Green (R-TN): Mr. Patrick Yoes currently serves as the president National Fraternal Order of Police. In this role, Mr. Yoes leads the order and its more than 367,000 law enforcement members in representing police officers in the profession. Prior to taking his current role, Mr. Yoes served an impressive 36 years as an active law enforcement officer. 25:45 Col. Christopher L. Paris: Prior to the shooting, our role was to support the Secret Service with personnel and assets that they requested. Our operation plan, completed to fulfill this responsibility consisted of 32 members, and we had two main responsibilities, a motorcade operation for the transportation with the Secret Service of former President Trump, as well as manning and staffing security posts inside the secure area of the Butler County Farm Show. Additionally, we provided two marked cars with uniformed troopers outside of the secure perimeter to provide roving duties, as the name implies, responding to incidents that may occur as a large gathering of people were moving to the venue. 1:22:10 Col. Christopher L. Paris: I would say from my experience and from state police operations to include this event as planned in our operations plan, we had integrated communications by having RPSP personnel in the Secret Service Command post. Rep. Mark Green (R-TN): So your person was in there, in that command post on this event? Col. Christopher L. Paris: Yes, sir. 1:22:45 Col. Christopher L. Paris: There's a lot of talk about interoperability and communications. The state police, for example, operate our own statewide radio network, so we have the ability to, if we have an incident, a long protracted incident, for example, where we need to patch other agencies in, we have the capability to do that. However, Secret Service, for example, maintain some additional encrypted communications. So the best way to integrate unified command… Rep. Mark Green (R-TN): Is physically present in the command site. Col. Christopher L. Paris: That would be our, yeah. Rep. Mark Green (R-TN): That's how the Army does it and the military Col. Christopher L. Paris: I would expect our commanders to have personnel in there so that we could have radio communication, as well as a redundancy in the operations plan with a telephonic backup. 1:25:30 Col. Christopher L. Paris: The final walkthrough occurred on the 11th. Present at that meeting were the two commanders that were tasked with both staffing the security checkpoints on the interior of the secure perimeter, as well as the commander who was going to be in charge of the motorcade. But in addition to that, a PSP area commander was on that walkthrough, holding the rank of Major. Rep. Mark Green (R-TN): Could you share a little bit of insight? I appreciate the timeline, but could you share a little bit specific to the AGR building? Col. Christopher L. Paris: So on that walkthrough, our area commander asked specifically who was responsible for the AGR building, and we were told that Butler ESU was responsible for that area by several Secret Service agents on that walkthrough. 1:26:35 Rep. Mark Green (R-TN): The slope of the roof, would that have prevented a sniper from being up there? Col. Christopher L. Paris I don't believe so, sir. Rep. Mark Green (R-TN): Okay. 1:29:40 Rep. Bennie Thompson (D-MS): President Yoes, in your comments, you talked about the need for communication. You talked about FirstNet. We have federal, state, and local law enforcement at an event like what we're talking about in Butler, but in our conversation with some of the locals, not state police, but the sheriff's department and the chief of police in Butler yesterday, those individuals did not have communication with state police or Secret Service. Would that, in your professional opinion, be a vulnerability for managing an event like this? Patrick Yoes: Well, I think we can go back to 9/11. When we identified at that time that the inoperability of different agencies to be able to communicate really was a hindrance. There's an infrastructure in place now to address these inoperabilities, but at the same time, they're not always utilized in every event. I do not have any direct knowledge whether that was the issue here, but I can tell you it is a common issue in law enforcement and an ability for our agencies not to be able to communicate, not that the technology is not necessarily there, it's because that they're not always incorporated. 1:31:10 Rep. Bennie Thompson (D-MS): Yeah, we passed legislation mandating, obviously, FirstNet interoperability, and we tied funding to make sure that that happens. But here we are looking at this situation and we picked up some valuable information that we are still not where we need to be on that. 1:32:25 Rep. Bennie Thompson (D-MS): Butler, Pennsylvania has no permitting process for events of that size, so you can announce it and hold it, and local government doesn't really have anything to do with it. And we were assured by local government that they would try to fix that. They said, we have to be more involved in events of this size, so that if this was not the best venue, then that permitting could have gotten engaged and suggested an alternate venue. 1:42:25 Rep. Eric Swalwell (D-CA): How many rounds did the shooter fire before he was killed? Do you know? Col. Christopher L. Paris: I believe that the number is eight casings have been recovered. 1:55:05 Rep. Dan Bishop (R-NC): Colonel Paris, are you aware whether any law enforcement officer or officers was or were posted in the second floor window of the AGR building? Col. Christopher L. Paris: I am aware, yes, sir. Rep. Dan Bishop (R-NC): And what is the answer? Col. Christopher L. Paris: To my knowledge, there were two posted there from Butler ESU. Rep. Dan Bishop (R-NC): And you said Butler ESU. What does the acronym ESU stand for? Col. Christopher L. Paris: Emergency Services Unit. It's a team that's comprised of multiple agencies that pool resources on a county or several county basis in order to enhance capabilities and training and be able to respond. Basically a mutual aid agreement is my understanding of it. Rep. Dan Bishop (R-NC): Is it sort of like a SWAT team? Col. Christopher L. Paris They are trained in SWAT tactics, to my knowledge, yes. Rep. Dan Bishop (R-NC): So how many ESU officers were posted to that second floor window? Col. Christopher L. Paris: I am aware that two were in the building, but again, I have not seen the Secret Service operations plan. Rep. Dan Bishop (R-NC): Do you know, you say in the building, were they in a window? A window out onto the scene? Col. Christopher L. Paris: From briefings that I have been given, I was told they were in a window, yes, sir. Rep. Dan Bishop (R-NC): Did they remain on Post? Col. Christopher L. Paris: I was told that at a certain point they began searching along with other local officers in the immediacy after Crooks had been identified as suspicious by them. Rep. Dan Bishop (R-NC): By them? Col. Christopher L. Paris: My understanding is that they identified Crooks for not matriculating. To my knowledge, Crooks never made it through the Secure Perimeter into the venue space itself. He was identified by those members as suspicious in part because of that. And then at some point he produced the range finder, which heightened that. 1:57:30 Rep. Dan Bishop (R-NC): Was it from this vantage point that those ESU officers spotted Crooks? Col. Christopher L. Paris: I don't know that particular window, but my understanding is from a second story window is where he was initially spotted. 1:57:45 Rep. Dan Bishop (R-NC): So are you then saying that, to your knowledge, those ESU officers left the location where they could look out the window to go in search of this person? Col. Christopher L. Paris: That is my understanding. Rep. Dan Bishop (R-NC): So sometime between the time he was spotted on the ground and identified as someone suspicious until the shooting, they had left that post to go look for him. Is that what you're saying? Col. Christopher L. Paris: My understanding is yes. Along with other municipal officers that responded to that area. And that's based on interviews that we've conducted. And I want to be very clear that I don't want to establish a timeline minute by minute because we don't have that yet. 2:35:40 Col. Christopher L. Paris: So this goes to my earlier qualifier about the timeline, but my understanding of the sequence of events is that he was determined to be suspicious as a result of behavior that he was exhibiting, milling around that area in front of the AGR building. There was a text thread that was going, I've been briefed, between the ESU members. They identified, they took a photo of him at some point. When he utilized the rangefinder, the suspicion was heightened. So I know at a certain point in the command post, a member of PSP received a phone call and a text message from members of ESU, and I know from an interview that that was immediately relayed in the command post to the Secret Service. 2:36:35 Col. Christopher L. Paris: When the PSP member received that information and verbally turned right around, gave it to the Secret Service, our member was provided with a number to which the picture that had been taken by the Butler ESU members, or that was on that group thread, to which that should be sent. Our member did that, and our understanding was that was some element of the Secret Service. 2:37:50 Col. Christopher L. Paris: But at that point, just to be clear, he was determined to be suspicious. There was no information that he possessed a weapon. He was outside of that building where the ESU was posted. They were being vigilant. It's, I think, relevant that there were other people at the venue who were suspicious and reported likewise, in a close temporal nexus to that as well. 2:38:35 Col. Christopher L. Paris: I believe, again, I'll defer to when the President came out. I know that that was probably 20 to 25 minutes before 18:11 hours and steps were taken by the municipal officers over in that area, they were actively looking for Crooks. You saw the building yesterday. That's a pretty wide footprint. They began looking for him. There were scores of people making their way across that facility. Again, just for some context, there were over a hundred people that day requiring medical attention due to the heat. There was a missing 6-year-old. This individual was deemed to be suspicious because he was walking around and not moving into the venue. The rangefinder obviously heightened that, and they were attempting to locate him as people were moving across that space, who were attending the event, to the secure perimeter. 2:41:10 Rep. Dan Goldman (D-NY): You said that many of your officers, or Butler ESU officers, were looking for Crooks. That was after that photograph was relayed to the Secret Service? Col. Christopher L. Paris: My understanding is it was after the photo was relayed to our trooper in the command post. And yes, Crooks was in that area around the building. My understanding is two additional municipal officers who were on a different post responded to that area and they began actively looking for Crooks. They circumscribed the building to try and locate him. It became apparent at some point that he was up on the roof. Those two municipal officers who responded then, to their credit, actively, once they realized that he was on the roof, one boosted the other one up hanging from the ledge of the roof. By the time that officer was boosted up on top of the roof, Crooks was on it almost in that final position that you saw. He had the AR out and he pointed it at the municipal officer who was suspended from the roof, who was not in a position, feet dangling at that point, to draw a weapon or continue hoisting himself back up on the roof. He drops back down from the roof, and at this point, I believe, that's when the video that's been widely circulated with people filming Crooks up on the roof saying there's somebody up on the roof. There were other law enforcement around the building running, but their vantage point on the ground did not lend a clear line of sight to where Crooks was at the top of that building. 2:44:35 Col. Christopher L. Paris: The hoisting up of the officer occurred probably no more -- again, I'm going to give you a time, but I want to just put it in context -- Rep. Dan Goldman (D-NY) We understand it's not specific. Col. Christopher L. Paris: -- of a sequence of events. I would say at most two and a half to three minutes before that first shot rang out. 2:45:00 Col. Christopher L. Paris: The municipal officer saw Crooks. Crooks saw him, and Crooks turned and leveled the gun at him in a position tactically of extreme disadvantage, suspended in the air with your legs dangling after somebody had boosted you up. Rep. Dan Goldman (D-NY): And he let go, right? Col. Christopher L. Paris: He let go and he fell back down. 2:48:30 Rep. Marjorie Taylor Greene (R-GA): Now emergency services noticed Thomas Crooks on the roof -- this is the timeline that we have -- took a picture and reported it. Who did they send that picture to? Col. Christopher L. Paris: Just to be clear, they were posted in the AGR building and took a picture of him. That's what you're referring to. Rep. Marjorie Taylor Greene (R-GA): Yes, who did they send the picture to? Col. Christopher L. Paris: I only know from interviews what I can confirm to my knowledge and belief here today, that a member of Pennsylvania State Police inside of the command post received that information telephonically and by text, relayed it to the Secret Service, and then was given a number to follow up on and that was based, again, heightened suspicion. Rep. Marjorie Taylor Greene (R-GA): How did they relay it to Secret Service? Col. Christopher L. Paris: I believe that they verbally turned and said in the command post, this is information that I just received. And then in follow up to that, as directed from the interview that I was briefed on, that was forwarded by text as requested by the Secret Service. 2:56:10 Rep. Nick LaLota (R-NY): Were there other folks who were also in the crowd identified as suspicious by law enforcement? Col. Christopher L. Paris: I have been briefed that yes, there were multiple individuals, which would be consistent with normal operations for a detail like this, that are identified as suspicious. Rep. Nick LaLota (R-NY): Can we take that as a single digit number of other folks? Col. Christopher L. Paris: The number that I was briefed on was single digit, but I can't say definitively that I was -- Rep. Nick LaLota (R-NY): What number were you briefed on, Colonel? Col. Christopher L. Paris: I believe I was briefed on an additional three individuals. 3:03:25 Col. Christopher L. Paris: I'm aware of three radio systems in operation: PSP's, the Secret Service, and Butler County's. Rep. Morgan Luttrell (R-TX): All communicating on different channels. Col. Christopher L. Paris: Technically, yes, but, I can only speak from PSP, our integration occurs by us having somebody inside of the Secret Service Command post. Again, for an incident of this magnitude, in theory, the more people you have on the same channel, if there was a medical emergency or a lost 6-year-old and everybody keys up at once, it paralyzes your communication. 3:14:45 Rep. Rob Menendez (D-NJ): From the time that a law enforcement officer was hoisted up, was identified by the shooter, the shooter turns his rifle on him, how long between that encounter and the first shot? Col. Christopher L. Paris: So, I'm glad you asked me that question, Congressman. I'd like to clarify. So it was a matter of seconds. Rep. Rob Menendez (D-NJ): Alright, because I think earlier it might've been minutes. Col. Christopher L. Paris: Correct, and I appreciate you asking that question, you allowing me to clarify that on the record. When I assigned that number, which again, I don't want get locked into a timeline, of three minutes before, that's probably a total amount of time that he was on the roof. When the one local officer hoisted the other one up and subsequently falls, releases himself after being faced with that -- Rep. Rob Menendez (D-NJ): The shooter shuffles across the roof and takes his first shot -- Col. Christopher L. Paris: He's already, I believe, close to being in his final position there, and I'm told it's again, sequence of events, not a timeline based on the prior criteria laid out, but seconds after that is when the first shots rang out. 3:24:20 Patrick Yoes: There's no doubt when you look at how many people are involved in an operation like this, having everyone on one channel is difficult. But there are people within contained areas and their ability to be able to communicate as things change across platforms is crucial. In this case, we know that in seconds things unfolded and in seconds getting meaningful communication out to people who might be able to act on that communication is vital. So I think there's avenues here. I agree that not everyone should be on the same channel, but there are certain people within certain areas and perimeters that should be having communication or the ability to communicate a little more freer. 3:37:20 Rep. Eli Crane (R-AZ): Now that you've had a chance to go back and look over it, what is the tallest structure on that site? Col. Christopher L. Paris: The water tower, sir. Rep. Eli Crane (R-AZ): Absolutely. Colonel, do you know how far the water tower was from the roof where the shooter took his shots? Col. Christopher L. Paris: I do not. Rep. Eli Crane (R-AZ): 160 yards, sir. Who made the decision, Colonel, not to put a counter sniper team on the tallest structure by far on the site with 360 degree surveillance? Do you have any idea? Col. Christopher L. Paris: I do not know, sir. Rep. Eli Crane (R-AZ): Okay. We'd like to get that answer. 4:02:55 Rep. Mark Green (R-TN): Was Secret Service notified that they were leaving to go look for this guy and thus those eyes on top of the building gone? Col. Christopher L. Paris: I do not know. And the other thing that I do not know is where else Butler ESU sent that information. I have not been briefed on that. Rep. Mark Green (R-TN): Who told them to go look? Do you know if they were told to go look? Col. Christopher L. Paris: I do not know, sir. Rep. Mark Green (R-TN): We just know that they did go look. Col. Christopher L. Paris: Yes, sir. And like I said, a very concerted effort with all of those alcoves and all of those buildings was made. There were two additional officers who, again, I don't know the specifics of the timeline, I don't know the specifics of the logistics of how that information was relayed, but I'm briefed that they came and they made a very concerted effort to try and locate Crooks. 4:12:05 Col. Christopher L. Paris My understanding is the two officers that responded and one hoisted up, the second one were not part of Butler ESU. They were two separate municipal officers who were tasked with a different responsibility. I would speculate, as an example, to say a traffic post or… Rep. Mark Green (R-TN): Understood. Col. Christopher L. Paris: And they responded. I don't know, again, the specifics as to how they were alerted, but just to be clear, they were two separate. Yes, sir. 4:12:30 Rep. Dan Bishop (R-NC): The Butler ESU officers who spotted Crooks, do I understand correctly, they spotted him from the second floor of the AGR building? Col. Christopher L. Paris: That is my understanding. Yes, sir. Rep. Dan Bishop (R-NC): Okay. Were they posted there in order to maintain Overwatch on the roof, or were they generally assigned roving responsibility to be in the vicinity of that building? Col. Christopher L. Paris: I can't answer that, and I would defer to the Secret Service. July 22, 2024 House Committee on Oversight and Accountability Witnesses: Kimberly Cheatle, [then] Director, United States Secret Service Clips Time stamps correspond to YouTube version 19:45 Rep. James Comer (R-KY): A little over a week ago, Americans watched in horror as a shooter attempted to assassinate President Donald J. Trump at a campaign rally in Butler, Pennsylvania. The gunman nearly succeeded. The bullet that struck President Trump's head was less than an inch from taking his life. President Trump survived, but one rallygoer, Corey Comparatore, tragically did not. Two others were seriously injured. It was a horrifying moment in American history. The horror was exceeded only by the bravery of the law enforcement agents who threw themselves in harm's way when shots were fired, the bravery of a crowd unwavering in its refusal to panic, and the bravery of a bloody President Trump refusing to run. 32:55 Kimberly Cheatle: Today we are joined by Kimberly Cheatle, who was sworn into office on September 17, 2022, as the Director of the United States Secret Service. Prior to her appointment, Director Cheatle was Senior Director of Global Security at PepsiCo. Before her role at Pepsi, she served 27 years in the Secret Service. 35:40 Kimberly Cheatle: The Secret Service's solemn mission is to protect our nation's leaders. On July 13th, we failed. As the Director of the United States Secret Service, I take full responsibility for any security lapse of our agency. We are fully cooperating with ongoing investigations. We must learn what happened, and I will move heaven and Earth to ensure that an incident like July 13th does not happen again. Let me state unequivocally, nothing I have said should be interpreted to place blame for this failure on our federal, state, or local law enforcement partners who supported the Secret Service in Butler. We could not do our job without them. 37:05 Kimberly Cheatle: I will be transparent as possible when I speak with you. Understanding, though, at times, that I may be limited in providing a thorough response in this open setting due to associated risks with sharing highly sensitive protective methodologies. 38:30 Kimberly Cheatle: The comprehensive advance process involves collaborative planning between our Secret service, the protectee's staff, and local law enforcement partners. The level of security provided for the former President increased well before the campaign and has been steadily increasing as threats evolve. The security plan included a full assessment of the Butler Farm Show grounds to identify security vulnerabilities and craft a security plan for the protectee, attendees, and the public. Immediately following the assassination attempt, I directed the activation of my crisis center. I assembled my executive team to begin surging more protective resources to the former President and to ensure the wellness of our people post-incident, all while securing an active crime scene. I immediately ordered a reevaluation of the Republican National Convention Security Plan, and I increased the security posture in the National Capitol Region for all permanent protectees and sites. At the same time, I initiated a Mission assurance investigation within our agency. 41:40 Rep. James Comer (R-KY): Let's start with the building that the shooter used to shoot President Trump from. At any point Saturday, did the Secret Service have an agent on top of that roof? Kimberly Cheatle: Sir, as I'm sure you can imagine that we are just nine days out from this incident and there's still an ongoing investigation, and so I want to make sure that any information that we are providing to you is factual. Rep. James Comer (R-KY): You can't, okay. Can you answer why the Secret Service didn't place a single agent on the roof? Kimberly Cheatle: We are still looking into the advanced process and the decisions that were made. Rep. James Comer (R-KY): Okay, okay. Wasn't that building within the perimeter that should be secured? Do we agree with that? Kimberly Cheatle: The building was outside of the perimeter on the day of the visit, but again, that is one of the things that during the investigation, we want to take a look at and determine whether or not other decisions should have been made. Rep. James Comer (R-KY): One of the things that you said, I believe in an interview, that there wasn't an agent on the roof because it was a sloped roof. Is that normal? And do you fear that that immediately creates an opportunity for future would-be assassins to look for a slanted roof? I mean, this is a huge question that every American has. Why wasn't a Secret Service agent on the roof? And there have been reports that agents were supposed to be on the roof, but it was hot that day and they didn't want to be on the roof. Can you answer any of those questions, Director? Kimberly Cheatle: So I appreciate you asking me that question. Chairman. I should have been more clear in my answer. When I spoke about where we placed personnel in that interview, what I can tell you is that there was a plan in place to provide Overwatch, and we are still looking into responsibilities and who was going to provide Overwatch, but the Secret Service in general, not speaking specifically to this incident, when we are providing Overwatch, whether that be through counter snipers or other technology, prefer to have sterile rooftops. Rep. James Comer (R-KY): Did the Secret Service use any drones for surveillance that day? Kimberly Cheatle: So again, I'm not going to get into specifics of that day in itself, but there are times during a security plan that the Secret Service does deploy an asset like a drone. Rep. James Comer (R-KY): There were reports that the shooter used a drone just a few hours before the rally start time. Is that accurate? Kimberly Cheatle: I have heard those same reports. And again, am waiting for the final report. Rep. James Comer (R-KY): If you can't answer the question, that's your answer. But can you answer this? Do you know, I'm not asking yes or no, but do you know if the shooter used a drone before the shooting? Kimberly Cheatle: That information has been passed to us from the FBI. Rep. James Comer (R-KY): How many Secret Service agents were assigned to President Trump on the day of the rally? Kimberly Cheatle: Again, I'm not going to get into the specifics of the numbers of personnel that we had there, but we feel that there was a sufficient number of agents assigned. 46:05 Rep. James Comer (R-KY): Before July 13th, had the Trump detail requested additional resources? Kimberly Cheatle: What I can tell you is that for the event on July 13th, the assets that were requested for that day were given. 46:25 Rep. Jamie Raskin (D-MD): It's been reported that before former President Trump got up on the stage at around 6:00 PM on Saturday, July 13th, that the local police had identified and even photographed a man who was acting suspiciously. And this man, who turned out to be the gunman, had been flagged as a potential threat. Is that accurate? Kimberly Cheatle: What I can say is that the individual was identified as suspicious. Rep. Jamie Raskin (D-MD): So he was known to be suspicious before former President Trump took the stage. Kimberly Cheatle: That is the information I have received. Rep. Jamie Raskin (D-MD): Why was he allowed to take the stage with a suspicious person having been identified in the crown? Kimberly Cheatle: So I appreciate the question, and I'd like to make two points. If the detail had been passed information that there was a threat, the detail would never have brought the former president out onto stage. That is what we do and that is who we are. We are charged with protecting all of our protectees. Rep. Jamie Raskin (D-MD): So you distinguish between someone who is suspicious and someone who's threatening. Is that right? Kimberly Cheatle: We do. There are a number of times at protective events where suspicious people are identified and those individuals have to be investigated and determined what is it that identifies that person as suspicious? 47:45 Rep. Jamie Raskin (D-MD): Did you deny a request for additional resources that had been made by the Trump campaign? Kimberly Cheatle: There were no assets denied for that event in Butler on the 13th. Rep. Jamie Raskin (D-MD): I see. So you're saying there were requests made for additional assistance for other specific events, rather than for the campaign as a whole. Is that right? Kimberly Cheatle: I'm sorry, I'm not understanding. Rep. Jamie Raskin (D-MD): You seem to say that there were not additional resources requested for that event. And forgive me for being unfamiliar with this. Is it requested event-by-event or is it requested just in general for the campaign? Kimberly Cheatle: So if I can explain the advance process. When an event or an venue is identified by, in this case, campaign staff, then the campaign staff works together with Secret Service agents who go out and conduct an advance. Generally that is a five day time period where those discussions are had about what the perimeter is going to look like, what the size of the event is, what the venue is, and then from there there is a request made to mitigate potential risk and threat. And I'm saying that on that day, the requests that were pushed forward were granted. 49:00 Rep. Jamie Raskin (D-MD): So the Secret Service did not know that the gunman actually had a weapon before President Trump was allowed to get up on the stage. Kimberly Cheatle: To the best of our knowledge and the facts that we have at this point, that is correct. 49:50 Rep. Jamie Raskin (D-MD): It's been reported that the shooter was not carrying a driver's license or any form of identification. They had no idea who he was, but then he was quickly identified, I think within 30 minutes, by using the serial number on the AR-15 under a tracing system that is now controversial. Some people say we should get rid of it, some people want to keep it. But is that right, that the serial number was the key information which led to the identification of the shooter? Kimberly Cheatle: That is my understanding, sir. Yes. 52:50 Rep. Jim Jordan (R-OH): How many times did you turn them down ahead of that? Kimberly Cheatle: I think that it is important to distinguish between what some people may view as a denial of an asset or a request -- Rep. Jim Jordan (R-OH): Well, Mr. Guglielmi, your spokesperson, he said he acknowledged the Secret Service had turned down some requests. I'm asking how many. Kimberly Cheatle: A denial of a request does not equal a vulnerability. Rep. Jim Jordan (R-OH): Well, tell me what it is. Kimberly Cheatle: There are a number of ways that threats and risks can be mitigated with a number of different assets, whether that be through personnel, whether that be through technology or other resources. Rep. Jim Jordan (R-OH): Well tell the committee which it was. They asked for additional help in some form or another. You told them no. How many times did you tell them no? And what'd you tell them no to? Kimberly Cheatle: Again, I cannot speak to specific incidents, but I can tell you in general terms the Secret Service is judicious with their resources based on -- Rep. Jim Jordan (R-OH): What does some requests mean? How many times? Requests is plural. So more than once they ask for additional help and you turned them down. What did they ask for and how many times did you turn them down? Pretty basic questions. Kimberly Cheatle: So again, without having all of the details in front of me, sir, what I can tell you is that there are times when -- Rep. Jim Jordan (R-OH): You didn't get briefed on how many times you turned down the Trump detail when they asked for additional help? Kimberly Cheatle: I'm sorry. Rep. Jim Jordan (R-OH): Didn't get briefed on that before you came to this hearing, knowing you were going to get asked that question? Kimberly Cheatle: What I can tell you is that in generic terms, when details make a request, there are times that there are alternate ways to cover off on that threat. 1:04:05 Rep. Mike Turner (R-OH): Director Cheatle, have you read the intelligence of the generalized threat to Donald Trump by Iran as a result of their desire to retaliate for the killing of Soleimani? Kimberly Cheatle: I have. Rep. Mike Turner (R-OH): Have you read or been briefed about the intelligence of the specific recent threat to Donald Trump from Iran? Kimberly Cheatle: Yes, I have. Rep. Mike Turner (R-OH): Director Wray, when we were getting our briefing, indicated that he thought the threat assessment should have included this threat from Iran. Is it your testimony today that the threat assessment, since you've read this intelligence, was sufficient to protect him from this threat from Iran? Kimberly Cheatle: My testimony today is that the information that we had at the time was known, that -- Rep. Mike Turner (R-OH): Was it sufficient, Director Cheatle? Was it sufficient for the Iranian threat that you said you have read the intelligence briefings for? Kimberly Cheatle: That information was passed to -- Rep. Mike Turner (R-OH): Well, I'm not asking the bureaucratic issue of who did it get passed around to. Director Cheatle, was it sufficient for the specific and generalized threat to Donald Trump's life from Iran? Kimberly Cheatle: Yes, I do believe it was. Rep. Mike Turner (R-OH): Director Cheadle, is an Iranian assassin more capable than a 20-year-old? Kimberly Cheatle: Sir, I think we've acknowledged that there was gaps and a failure that day. 1:09:15 Rep. Stephen Lynch (D-MA): There were some reports that the individual had a rangefinder. That would certainly raise my suspicion. Did he have a rangefinder? Kimberly Cheatle: Yes, he did. But may I explain that at a number of our sites, especially when you're at outdoor venues, a rangefinder is not a prohibited item. It is sometimes an item that is brought in by individuals if you're going to be in the back. Rep. Stephen Lynch (D-MA): Did anybody confront him on that? Anybody ask him questions? What are you doing with the rangefinder? Anybody confront him on his presence where he was in proximity to the President? Kimberly Cheatle: So again, to my knowledge, I believe that that was the process that was taking place, was to locate the individual. Rep. Stephen Lynch (D-MA): Did they confront him? Did they go up to him? Did they talk to him? Kimberly Cheatle: I do not have those details at this time. Rep. Stephen Lynch (D-MA): Yeah, those are important details. 1:10:40 Rep. Stephen Lynch (D-MA): There was considerable delay in removing the president from the podium after the shooting began. He got shot in the ear, and it was still over a minute before he was removed from the stage. Meanwhile, this shooter had multiple clips. Several clips. He got off eight shots, and he had the capacity and the ability, if he was not neutralized, to basically mow down that whole Secret Service detachment as well as the President. What, from your own investigation, caused that delay under the circumstances. Kimberly Cheatle: What I can tell you is that when the agents identified that the shooting was taking place, in under three seconds they threw themselves on top of the -- Rep. Stephen Lynch (D-MA): I understand that. There was heroism there. No question about it. No question about it. But protocol would indicate, and these are the opinions of various former Secret Service agents, people who have done this work in the past, that over a minute of exposure on that podium, with a shooter with a high-capacity weapon, who had already wounded the President and could have got off we don't know how many more rounds, and yet the President remained exposed even though he was joined in that exposure by the Secret Service in their heroic acts. I dunno if there's a good explanation for that. Kimberly Cheatle: Our personnel created a body bunker on top of the President, shielding him. Rep. Stephen Lynch (D-MA): I get that. Yeah. This was an AR 15 style weapon that would've made pretty quick work if he was determined and able to do so. 1:13:00 Kimberly Cheatle: As of today, the Secret Service has just over 8,000 employees. We continue to hire knowing that we need to ensure that we keep pace with a -- Rep. Stephen Lynch (D-MA): What would be the full compliment that you're looking for? You've got 8,000 and how many would be a full complement for the service? Kimberly Cheatle: So we are still striving towards a number of 9,500 employees, approximately, in order to be able to meet future and emerging needs. 1:25:15 Rep. Glenn Grothman (R-WI): When this guy took the shots, he climbed a ladder to get on the roof, correct? Kimberly Cheatle: I'm unable to answer details of exactly how the individual accessed the roof at this time. Rep. Glenn Grothman (R-WI): Do you know if he did use the ladder? Do you know when the ladder was placed there? Was the ladder there two days before? Just the night before? Do you have any information at all as to when the ladder got there? Kimberly Cheatle: I would like to be able to answer those questions. The FBI is still conducting an investigation. 1:25:20 Rep. Glenn Grothman (R-WI): Were President Trump's normal agents, normally assigned to him, there that day? Kimberly Cheatle: Yes. Rep. Glenn Grothman (R-WI): These were the same agents that were always there? Kimberly Cheatle: Yes, sir. The people that are assigned to his detail were working on that day. 1:30:45 Rep. Raja Krishnamoorthi (D-IL): As you know, the shooter began shooting at 6:11 PM Eastern on July 13th. NBC reported that at 5:51 PM, 20 minutes before the shooting began, the State Police informed the Secret Service of their concern. Now, the rally was not paused at that point, correct? Kimberly Cheatle: No. Rep. Raja Krishnamoorthi (D-IL): And according to NBC, just two minutes later, at 5:53 PM, the Secret Service notified its snipers about the gunman. The rally wasn't paused at that point either, correct? Kimberly Cheatle: No. Rep. Raja Krishnamoorthi (D-IL): Let me show you some video footage by rally goers. If you could play the video on the screen up here. This was taken two minutes before the shooting started. If you could turn up the volume. Rally goers: Right up here, he's on the roof. Right there, right on the roof. He's standing up now. Right on the roof. Rep. Raja Krishnamoorthi (D-IL): Ma'am, that doesn't look like suspicious behavior. That looks like threatening behavior to me. And the rally wasn't paused at that point either, correct? Kimberly Cheatle: I can tell you, as I stated earlier, sir, that the moment that the shift surrounding the President were aware of an actual threat. -- Rep. Raja Krishnamoorthi (D-IL): That's a threat, right there. The guy's on the roof and everybody's yelling at him and directing the officer's attention to him. The rally was not paused at that point, correct? Kimberly Cheatle: We are currently still combing through communications and when communications were passed. Rep. Raja Krishnamoorthi (D-IL): Well, I can point you to this communication. It's two minutes before the shots started ringing out. Director Cheatle, yes or no, was there ever a moment where the Secret Service actually considered pausing the rally? Kimberly Cheatle: The Secret Service would've paused the rally had they known or -- Rep. Raja Krishnamoorthi (D-IL): So the answer is no -- Kimberly Cheatle: -- been told there was an actual threat. Rep. Raja Krishnamoorthi (D-IL): The answer is no, correct? Kimberly Cheatle: I can speak to you in generalities. Rep. Raja Krishnamoorthi (D-IL): No, no. I don't want generalities. I want specifics. The answer is no, you did not consider pausing the rally, correct? Kimberly Cheatle: The people that are in charge of protecting the President on that day would never bring the former President out if there was a threat that had been identified. Rep. Raja Krishnamoorthi (D-IL): Well, they did because we've now identified three points in the 20 minutes before the shooting that the threat emerged. Let me point you to something else, which is the building that the shooter was perched on, seen here. This building is called the AGR building. I'm sure that you're familiar with it. It's no more than 150 yards from the stage where Donald Trump stood. Yet the security perimeter was drawn such that the AGR building was placed outside of it. Director Cheatle, according to the Washington Post, the AR 15-style rifle used in the shooting had a range of 400 to 600 yards, and therefore the AGR building was clearly within rifle range of the stage, correct? Kimberly Cheatle: Yes. Rep. Raja Krishnamoorthi (D-IL): NBC News has reported that in the days before the rally, the Secret Service had identified the building as a vulnerability that required special attention, correct? Kimberly Cheatle: That's reporting from NBC? Rep. Raja Krishnamoorthi (D-IL): Yes. Kimberly Cheatle: So I am still looking into an active investigation. Rep. Raja Krishnamoorthi (D-IL): I know, but it's been nine days. I mean, you should know that, right? And yet, despite the fact that the AGR building was in rifle range of the stage, and it was flagged as a vulnerability, this building was put outside of the Secret Service's security perimeter. And I respectfully submit, the Secret Service must expand its security perimeter to account for the kinds of weapons that can be used outside the perimeter to endanger the protectees inside the perimeter. 1:34:50 Rep. Raja Krishnamoorthi (D-IL): First, you have not found evidence that the incident was a stage shooting, right? Kimberly Cheatle: Correct. Rep. Raja Krishnamoorthi (D-IL): And you haven't found evidence that this was a result of a conspiracy of high ranking government officials, correct? Kimberly Cheatle: Correct. Rep. Raja Krishnamoorthi (D-IL): And you have not found evidence that this incident was in fact directed or perpetrated by a foreign state or entity, right? Kimberly Cheatle: Not at this time. 1:58:15 Rep. Pete Sessions (R-TX): Have any employees been disciplined for their role in the Butler, PA incident? Kimberly Cheatle: No, sir. Not at this time. I am asking those questions. 2:01:30 Rep. James Comer (R-KY): It's been nine days, every American wants these questions answered. Do you have a ballpark estimate of when what Mr. Sessions asked you would be able to answer, time wise? Kimberly Cheatle: I can tell you on our mission assurance internal investigation, we are targeting to have that completed within 60. 2:02:10 Rep. Alexandria Ocasio-Cortez (D-NY): Director Cheatle, respectfully, what you had just laid out about 60 days. We are currently in the midst of an especially concentrated presidential campaign in the moment that is also paired with, of course, elections happening across the country that are happening in about a hundred days. So the notion of a report coming out in 60 days when the threat environment is so high in the United States, irrespective of party, is not acceptable. 2:03:55 Rep. Alexandria Ocasio-Cortez (D-NY): Director Cheatle, is there a standard perimeter that the Secret Service establishes around an event, or are those perimeters independently determined per event and scenario? Kimberly Cheatle: There is no standard. Every event and every venue is different and treated as such. Rep. Alexandria Ocasio-Cortez (D-NY): So each event has a different perimeter that is established depending on the logistics of that event. Now, you established earlier that the building upon which the shooter operated from was outside of that established perimeter, correct, for the Butler Pennsylvania event? Kimberly Cheatle: It was outside of our secure perimeter, yes. Rep. Alexandria Ocasio-Cortez (D-NY): Now, that building was, I believe, 500....How far away was that building from the President? Kimberly Cheatle: It was approximately 200 yards. Rep. Alexandria Ocasio-Cortez (D-NY): 200 yards. Now, the individual used an AR 15 in order to act out his assassination attempt, an AR 15 has a range of about 400 to 600 yards. My question is, why is the Secret Service Protective perimeter shorter than one of the most popular semi-automatic weapons in the United States? Kimberly Cheatle: There are a number of weapons out there with a number of ranges. Again, an advance was completed. The determination of the perimeter, I'm not going to speak to specifics, but there are a number of factors that are taken into account when we determine our perimeter. Some of it has to do with terrain, some of it has to do with buildings, some of it has to do with assets and resources that are available. Rep. Alexandria Ocasio-Cortez (D-NY): And so what I'm hearing is that a perimeter was not established outdoors in an outdoor venue that would prevent an AR 15, which is one of the most common weapons used in mass shootings, from being able to be within the range of Secret Service protection. Kimberly Cheatle: A perimeter was established, and even though there were buildings that were outside of that perimeter, it wasn't just that building. There were a number of buildings in the area and there was Overwatch that was created to help mitigate some of those buildings. 2:32:45 Rep. Melanie Stansbury (D-NM): I want to talk a little bit about the timeline. Now, here's what we know, and I know, Director, you were also on the call that we had a few days ago with the FBI and other law enforcement. So I respect that you are not able to share based on your testimony, some of the details that are currently being investigated, but I know you were on the call because I heard you on the call and you heard them too. So I'm going to lay out the timeline a little bit. On July 3rd, the rally was announced that it was going to be in Butler. On July 6th, three days later, we know that the shooter searched for dates for Trump and DNC events. On July 7th, so this is four days after the announcement, the shooter went to the site. He actually physically went to the site. On July 12th, the shooter went to a gun range where he and his dad regularly go and practiced shooting. And the next day, on July 13th, he went to the site again before the rally began. We know that he then went and searched online for a gun store, where he went and he purchased 50 rounds of ammunition, went home, got his father's AR, which was legally purchased, and returned to the venue at 5:00 PM that evening. This is more than an hour before Donald Trump actually took the stage that evening. Local law enforcement we're made aware that there was a suspicious man. In fact, at 5:20, local law enforcement flagged that he had a rangefinder and they radioed their concerns and sent around pictures of the individual. At 5:40, 20 minutes before local law enforcement actually identified the shooter and at 5:51 Secret Service was notified of the suspicious person by the state police. And one minute later, they distributed that information. That was before Donald Trump even took the stage. That was 11 minutes before he took the stage. So the Secret Service was aware that there was a suspicious person. At 6:03 he took the stage. At 6:09, rally goers, as was shown in the video, identified this gentleman climbing on the roof. At 6:11, three shots were heard, three rounds of shots, and of course the president and the other victims were shot. 2:48:35 Rep. Pat Fallon (R-TX): So given that there was an increased threat to President Trump's life, was he provided a full security compliment akin to what a sitting US President would receive? Kimberly Cheatle: He was provided a full compliment of security based on the threat assessment that we had and the venue. Rep. Pat Fallon (R-TX): That's not my question. My question is, if he'd been the sitting President, would he have had the same security he had on July 13th or would it have been beefed up? Kimberly Cheatle: There is a difference between the sitting President -- Rep. Pat Fallon (R-TX): So your answer is, he didn't. Kimberly Cheatle: -- and continuity of government and the responsibility that we had -- Rep. Pat Fallon (R-TX): So he did not, okay. There wasn't a full CAT team on site. There wasn't countersurveillance teams on site. 2:49:25 Rep. Pat Fallon (R-TX): Have you visited the site? Kimberly Cheatle: No, I have not. 2:50:30 Rep. Pat Fallon (R-TX): You said, do you remember, in an ABC interview you did, that you didn't have people on the roof of the AGR building because you were worried about safety because of the slope? Kimberly Cheatle: I recall that statement. Rep. Pat Fallon (R-TX): Okay. Does the Secret Service have written policy you can share with us about sloped roofs? Kimberly Cheatle: No. 2:54:00 Kimberly Cheatle: So again, I think we're talking about the distinction between suspicious behavior and a threat, and at the time that this individual was identified, they were displaying suspicious behavior. I'm still waiting for interviews from the FBI to determine what it was that identified that individual as suspicious and what those behaviors were. 2:55:05 Rep. Summer Lee (D-PA): When there are so many teams that are collaborating, who takes the lead, and how is that determined? Kimberly Cheatle: The Secret Service is responsible for the security of the site and the coordination. Rep. Summer Lee (D-PA): And that was the case on July 13th? Kimberly Cheatle: Correct. 3:06:25 Kimberly Cheatle: I acknowledge that we are unaware at this time how the individual was able to access the roof. 3:06:35 Rep. Dan Goldman (D-NY): Overwatch meaning from other counter-sniper or other higher points. Kimberly Cheatle: Correct. 3:06:50 Kimberly Cheatle: I don't have the timeline of how the individual accessed the roof, where they accessed the roof, or how long they were on the roof. 3:13:40 Rep. Scott Perry (R-PA): Was Crook's vehicle inside any of your perimeters? Kimberly Cheatle: No, it was not. Rep. Scott Perry (R-PA): It was not. Was there a device located on Mr. Crook's body to detonate the vehicle? Kimberly Cheatle: That is the information that I have. 3:26:05 Kimberly Cheatle: The allocation of resources is decided based on the availability of personnel and their location and where they are, but there were sufficient resources that were given to the former President's event that day. Rep. William Timmons (R-SC): What did you just say? Did you just say there were sufficient resources? President Trump got shot. 3:32:05 Rep. Tim Burchett (R-TN): Were agents or officers inside the building? If so, what floor were they on? Kimberly Cheatle: We had local police officers inside the building. 3:59:30 Rep. Lisa McClain (R-MI): Have you been in communication with the FBI? Kimberly Cheatle: Yes, I have. Rep. Lisa McClain (R-MI): With whom? Kimberly Cheatle: I speak with the Director and the Deputy Director. Rep. Lisa McClain (R-MI): Okay. And what have they shared with you about this investigation? So I'll give you an opportunity to answer again. Did they share with you how many shell casings were on the roof? Kimberly Cheatle: They have shared with me the -- Rep. Lisa McClain (R-MI): Did they share with you how many shell casing were on the roof? Kimberly Cheatle: Yes. Rep. Lisa McClain (R-MI): Okay. How many were there? Kimberly Cheatle: I would refer to the FBI for their investigation. 4:13:20 Kimberly Cheatle: There are a number of other agencies that provide assistance to the Secret Service. During campaigns, we utilize personnel from the Department of Homeland Security, we utilize personnel from the Department of Defense, and we utilize local law enforcement partners. Rep. Russell Fry (R-SC): Are you on the same radios? Do you provide the radios to all the assets that are taking part in protection of an event? Kimberly Cheatle: We provide radios to the personnel from the Department of Homeland Security that are assisting us. Rep. Russell Fry (R-SC): But not local law enforcement? Kimberly Cheatle: Local law enforcement is working on their own radios. Rep. Russell Fry (R-SC): Are you on the same frequency? Kimberly Cheatle: We ensure that we have counterparts in the security room, and so the local law enforcement will place one of their personnel in the security room with our personnel so that we have interoperability communications. 4:14:25 Rep. Russell Fry (R-SC): Was Mr. Crooks observed at the AGR building prior to the shooting? Kimberly Cheatle: He was observed on the grounds outside of our perimeter prior to the shooting. Rep. Russell Fry (R-SC): At approximately what time was that? You don't have to give me the specific minute, but at approximately what time was that? Kimberly Cheatle: I believe it was about 45 minutes or so prior to [the shooting]. Rep. Russell Fry (R-SC): Did the sniper team take a photo of Mr. Crooks? Kimberly Cheatle: The local team did, yes. Rep. Russell Fry (R-SC): So it was a local team and not a Secret Service sniper. Kimberly Cheatle: That took the photo. Rep. Russell Fry (R-SC): Okay. And did he relay that photo to Central Command? Kimberly Cheatle: Again, it's an active ongoing investigation, so I want to make sure that I'm factual with the route that that photo took and who that was disseminated to and when. Rep. Russell Fry (R-SC): Did Mr. Crook's status go from a person that was under suspicion to a threat? When did that happen? And maybe not even a specific time, director Cheatle, maybe a certain event that happened that transformed him from a person of suspicion to a threat. When did that happen? Kimberly Cheatle: To the best of my knowledge, based on what I've been told thus far, it's approximately five minutes to where individuals relayed that there was an issue being worked at the three o'clock of the President. Rep. Russell Fry (R-SC): But it was before the shots were fired. Kimberly Cheatle: That is correct. But again, it was not phrased as a threat. It was just that something was being worked. Rep. Russell Fry (R-SC): Yeah, but my question is, when did he transform from suspicion to threat? Because they're treated very differently. People can be suspicious, but they're not a threat until a certain point in time. So when did that happen? Kimberly Cheatle: I believe that it was seconds before the gunfire started. Rep. Russell Fry (R-SC): Seconds. 4:18:40 Kimberly Cheatle: At this time we do not have that there were any other people engaged. Rep. Anna Paulina Luna (R-FL): So you believe he was acting alone? Kimberly Cheatle: I do. July 20, 2017 Senate Committee on Commerce, Science, and Transportation, Subcommittee on Communications Witnesses: Curtis Brown, Deputy Secretary of Public Safety & Homeland Security, State of Virginia Dr. Damon Darsey, Professor, University of Mississippi Medical Center Mark Goldstein, Director, Physical Infrastructure Issues, Government Accountability Office Chris Sambar, Senior Vice President, AT&T FirstNet Michael Poth, CEO, FirstNet Clips 6:37 Sen. Brian Schatz (D-HI): With FirstNet, firefighters will be able to download the blueprint of a burning building before they enter; a police officer arriving at a scene can run a background check or get pictures of a suspect by accessing a federal law enforcement database; most importantly, emergency personnel will not be competing with commercial users for bandwidth. They will have priority on this network, which will be built and hardened to public-safety specifications. It will have rugged eyes and competitive devices and specify public-safety applications. September 29, 2005 House Committee on Energy and Commerce, Subcommittee on Telecommunications and the Internet Witnesses: David Boyd, Director, SAFECOM Program, Department of Homeland Security Department Timothy Roemer, Director, Center for National Policy; Member, 9/11 Commission Art Botterell, Emergency Information Consultant Clips 1:43:00 Timothy Roemer: Let me give you a couple examples of what the 9/11 Commission found as to some of these problems. We found all kinds of compelling instances of bravery and courage, people going into burning buildings and rescuing people. They might have rescued more. We might have saved more of the fire department chiefs, officers, police officers, emergency personnel, if they would have had public-radio spectrum to better communicate. At 9:59 in the morning on 9/11 four years ago, a general evacuation order was given to firefighters in the North Tower. The South Tower had collapsed. A place that held up to 25,000 people had been diminished to cement, steel, and ash. The people, then, in the North Tower, many of the chiefs in the lobby, didn’t even know that the other tower had collapsed, or else they might have been able to get more people out more quickly. We had comments from people saying such things as, we didn’t know it had collapsed. Somebody actually said, Mr. Chairman, that people watching TV had more information than we did in the lobby on 9/11 in the North Tower. People on TV in Florida or California knew more than our first responders on site in New York City. Music by Editing Production Assistance
Ever wonder what it’s like to attend a Republican National Convention? How about an RNC that took place two days after their candidate was almost assassinated? In this bonus episode, Jen dishes on her experience at the RNC 2024 in Milwaukee Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Audio Sources July 18, 2024 C-SPAN Music by Editing Production Assistance
The Boeing 737 Max line of airplanes has been in the news often in the last 5 years after two fatal plane crashes and a door plug flew off a plane mid-flight, but Boeing’s recklessness extends far beyond the 737 Max. In this episode, hear testimony from whistleblowers, engineering experts, and government regulators during recent Congressional investigations into Boeing’s prioritization of its stock price over our safety. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Boeing’s Ongoing Problems Mike Bedigan. July 10, 2024. The Independent. July 10, 2024. Federal Aviation Administration. Noa Halff. July 9, 2024. The Daily Mail. March 8, 2024. NBC Bay Area. Tom Vacar and Zak Sos. March 7, 2024. KTVU FOX 2. NASA Starliner AP. June 29, 2024. NPR. Kenneth Chang. June 5, 2024. The New York Times. Kenneth Chang. March 6, 2020. The New York Times. Ties to US Government Defense Edward Carver. May 29, 2024. Truthout. Yeganeh Torbati and Aaron Gregg. November 25, 2020. The Washington Post. Lobbying OpenSecrets. OpenSecrets. Alaska Airlines Door Plug Blowout Simon Scarr et al. January 11, 2024. Reuters. FAA “Oversight” Marc Warren and Paul Alp. February 1, 2024. Adams and Reese LLP. Deferred Prosecution Agreement January 7, 2021. U.S. District Court for the Northern District of Texas, Fort Worth Division. Boeing Guilty Plea David Koenig and Alanna Durkin Richer. July 9, 2024. AP News. Joel Rose. July 9, 2024. NPR. David Dayen. July 3, 2024. The American Prospect. Stock Buybacks Stock Buybacks History. Boeing Orders Boeing. John Barnett Mike Bedigan. June 18, 2024. The Independent. Theo Leggett. March 11, 2024. BBC News. May 4, 2021. United States Department of Labor Administrative Law Judges. Staying Safe on Planes Peter Weber. January 8, 2015. The Week. Harold Maass. January 8, 2015. The Week. Charles W. Bryant. Nd. Mapquest Travel. McDonnell Douglas Merger James Surowiecki. January 15, 2024. The Atlantic. Natasha Frost. January 3, 2020. Quartz. Laws Audio Sources June 18, 2024 Senate Homeland Security and Governmental Affairs Committee, Permanent Subcommittee on Investigations Witnesses: David Calhoun, President and Chief Executive Officer, The Boeing Company June 13, 2024 Senate Committee on Commerce, Science, & Transportation Witnesses: , Administrator, Federal Aviation Administration April 17, 2024 Senate Homeland Security and Governmental Affairs Committee, Permanent Subcommittee on Investigations Witnesses: Sam Salehpour, Current Quality Engineer, Boeing Ed Pierson, Executive Director, The Foundation for Aviation Safety, Former Boeing Manager Joe Jacobsen, Aerospace Engineer and Technical Advisor to the Foundation for Aviation Safety, Former FAA Engineer Dr. Shawn Pruchnicki, Professional Practice Assistant Professor of Integrated Systems Engineering, The Ohio State University April 17, 2024 Senate Committee on Commerce, Science, & Transportation Witnesses: Dr. Javier de Luis, Lecturer, Massachusetts Institute of Technology (MIT), Department of Aeronautics and Astronautics Dr. Tracy Dillinger, Manager for Safety Culture and Human Factors, National Aeronautics and Space Administration Dr. Najmedin Meshkati, Professor, University of Southern California, Aviation Safety and Security Program March 6, 2024 Senate Committee on Commerce, Science, & Transportation Witnesses: Jennifer Homendy, Chair of the National Transportation Safety Board Bloomberg Originals March 12, 2020 June 4, 2019 Music by Editing Production Assistance
Get tickets for We're Not Wrong LIVE in Milwaukee: Friday, July 19 at 7pm Skylight Music Theater 158 N. Broadway, Milwaukee, WI 53202
The Supreme Court issued a handful of decisions this week that will change the way the United States government functions. In this episode, learn about the likely consequences of cases that pose challenges to government regulations and analyze the effect that immunity for former Presidents is going to have on the criminal cases pending against former President Donald Trump and all future Presidents…or Kings. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Supreme Court Decisions Mark Sherman. July 1, 2024. AP News. Matt Stoller. July 1, 2024. BIG on Substack. Audio Sources July 2, 2024 The White House Music by Editing Production Assistance
Every American who has a mortgage is required by their bank to have homeowners insurance, but getting it and keeping it is becoming a challenge. In this episode, hear the highlights of a Senate hearing examining the problems in the homeowners insurance market and why they might lead to much bigger problems next time disaster strikes. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Effects of Climate on Insurance Christopher Flavelle and Mira Rojanasakul. May 13, 2024. The New York Times. Chris Van Hollen et al. September 7, 2023. Chris Van Hollen, U.S. Senator for Maryland. Alice C. Hill. August 17, 2023. Council on Foreign Relations. Insurance Information Institute. Antonio Grimaldi et al. November 19, 2020. McKinsey & Company. Lobbying OpenSecrets. OpenSecrets. OpenSecrets. Heritage Foundation SourceWatch. Demotech William Rabb. April 15, 2024. Insurance Journal. Parinitha Sastry et al. December 2023. Fannie Mae Adam Hayes. May 17, 2023. Investopedia. Hurricanes National Oceanic and Atmospheric Administration. National Oceanic and Atmospheric Administration. Audio Sources Senate Committee on the Budget June 5, 2024 Witnesses: Glen Mulready, Insurance Commissioner, State of Oklahoma Rade Musulin, Principal, Finity Consulting Dr. Ishita Sen, Assistant Professor of Finance, Harvard Business School Deborah Wood, Florida Resident , Research Fellow, Heritage Foundation’s Grover Hermann Center for the Federal Budget Clips 23:05 Sen. Sheldon Whitehouse (D-RI): In 2022 and 2023, more than a dozen insurance companies left the Florida residential market, including national insurers like Farmers. Residents fled to Citizens Property Insurance, the state backed insurer of last resort, which ballooned from a 4% market share in 2019 to as much as 17% last year. If it has to pay out claims that exceed its reserves, citizens can levy a surcharge on Florida insurance policy holders across the state. Good luck with that. Particularly if the surcharge grows to hundreds or even thousands of dollars to depopulate its books. Citizens has let private insurers cherry pick out its least risk policies. Those private insurers may have problems of their own, as we will hear today. 25:10 Sen. Sheldon Whitehouse (D-RI): The federal budget takes a hit because these insurers and their policies are accepted by Freddie Mac and Fannie Mae, who either own or guarantee a large part of our $12 trillion mortgage market. This all sounds eerily reminiscent of the run-up to the mortgage meltdown of 2008, including a role of potentially captive or not fully responsible rating agencies. 25:45 Sen. Sheldon Whitehouse (D-RI): Florida is far from alone. A New York Times investigation found that the insurance industry lost money on homeowners coverage in 18 states last year, and the states may surprise you. The list includes Illinois, Michigan, Utah, Washington, and Iowa. Insurers in Iowa lost money each of the last four years. This is a signal that hurricanes and earthquakes, once the most prevalent perils, are being rivaled by hail, windstorms, and wildfires. 28:00 Sen. Sheldon Whitehouse (D-RI): This isn't all that complicated. Climate risk makes things uninsurable. No insurance makes things unmortgageable. No mortgages crashes the property markets. Crashed property markets trash the economy. It all begins with climate risk, and a major party pretending that climate risk isn't real imperils our federal budget and millions of Americans all across the country. 33:45 Sen. Chuck Grassley (R-IA): Insurance premiums are far too high across the board and may increase after the recent storms, including those very storms in my state of Iowa. Climate change isn't the primary driver of insurance rate hikes and collapse of the insurance industry isn't imminent. Although I'll have to say, Iowa had six property and casualty companies pull out of insuring Iowans. Climate change doesn't explain why auto insurance premiums in 2024 have increased by a whopping 20% year over year. It also doesn't account for the consistent failure of liberal cities to fight crime, which has raised insurance risk and even caused insurers to deny coverage. Expensive liberal policies, not climate change, are much to blame for these market dynamics. 39:00 Sen. Sheldon Whitehouse (D-RI): The first witness is Rade Musulin. Rade is an actuary with 45 years of experience in insurance, specializing in property pricing, natural perils, reinsurance, agriculture, catastrophe, risk modeling, public policy development, and climate risk. Specifically, he spent many years working in Florida, including as chair of the Florida Hurricane Catastrophe Fund Advisory Council during the time in which Citizens Property Insurance Corporation was established. 39:35 Sen. Sheldon Whitehouse (D-RI): Our second witness is Dr. Ishida Sen. Dr. Sen is an Assistant Professor at Harvard Business School. Her recent research examines the pricing of property insurance and the interactions between insurance and mortgage markets. This includes the role that institutions and the regulatory landscape play and the broader consequences for real estate markets, climate adaptation, and our overall financial stability. 40:00 Sen. Sheldon Whitehouse (D-RI): Our third witness is Deb Wood. Ms. Wood and her husband Dan McGrath are both retired Floridians. They moved to South Florida in 1979 and lived in Broward County, which includes Fort Lauderdale for 43 years until skyrocketing insurance premiums became too much. They now reside in Tallahassee, Florida. 40:35 Sen. Chuck Grassley (R-IA): Dr. EJ Antoni is a Research Fellow at the Heritage Foundation Grover M. Hermann Center for the Federal Budget. His research focuses on fiscal and monetary policy, and he previously was an economist at the Texas Public Policy Foundation. Antoni earned his Master's degree and Doctor's degree in Economics from Northern Illinois University. 41:10 Sen. Chuck Grassley (R-IA): Commissioner Glen Mulready has served as Oklahoma's 13th Insurance Commissioner and was first elected to this position in 2019. Commissioner Mulready started his insurance career as a broker in 1984, and also served in the Oklahoma State House of Representatives. 42:15 Rade Musulin: Okay. My name is Ray Muslin. I'm an actuary who has extensive experience in natural hazard risks and funding arrangements for the damage and loss they cause. I've worked with many public sector entities on policy responses to the challenges of affordability, availability of insurance, and community resilience. This work included participating in Florida's response to Hurricane Andrew, which included the creation of the Florida Hurricane Catastrophe Fund and Citizens Property Insurance Corporation. The Cat Fund and Citizens can access different forms of funding than traditional insurance companies. Instead of holding sufficient capital or reinsurance before an event to cover the cost of potential losses, both entities use public sources of capital to reduce upfront costs by partially funding losses post-event through bonding and assessments. All property casualty insurance policy holders, whether in Citizens or not, are subject to its assessments. While the Cat Fund can also assess almost all policies, including automobile, this approach exposes Floridians to debt and repayment if large losses occur, and it subsidizes high risk policies from the entire population. These pools, others like them in other states, and the NFIP have contributed to rapid development in high risk areas driving higher costs in the long run. In Florida, national insurers have reduced their exposure as a significant proportion of the insurance market has moved to Citizens or smaller insurers with limited capital that are heavily dependent on external reinsurance. To date, Florida's system has been successful in meeting its claims obligations, while improvements in building codes have reduced loss exposure. However, for a variety of reasons, including exposure to hurricanes, claims cost inflation, and litigation, Florida's insurance premiums are the highest in the nation, causing significant affordability stress for consumers. According to market research from Bankrate, the average premium for a $300,000 home in Florida is three times the national average, with some areas five times the national average. A major hurricane hitting a densely populated area like Miami could trigger large and long lasting post-event assessments or even exceed the system's funding capacity. Continued rapid exposure growth and more extreme hurricane losses amplified by climate change will cause increasing stress on the nation's insurance system, which may be felt through solvency issues, non-renewals, growth of government pools, and affordability pressure. 44:55 Rade Musulin: Evidence of increasing risk abounds, including Hurricane Otis in 2023, which rapidly intensified from a tropical storm to a cat. five hurricane and devastated Acapulco in Mexico last summer. Water temperatures off Florida exceeded a hundred degrees Fahrenheit last week. As was alluded to earlier, NOAA forecast an extremely active hurricane season for '24. We've seen losses in the Mid-Atlantic from Sandy, record flooding from Harvey, and extreme devastation from Maria, among others. In coming decades, we must prepare for the possibility of more extreme hurricanes and coastal flooding from Texas to New England. 46:50 Dr. Ishita Sen: Good morning Senators. I am Ishita Sen, Assistant Professor at Harvard Business School and my research studies insurance markets. In recent work with co-authors at Columbia University and the Federal Reserve Board, I examine how climate risk creates fiscal and potentially financial instability because of miscalibrated insurer screening standards and repercussions to mortgage markets. 47:15 Dr. Ishita Sen: Insurance is critical to the housing market. Property insurers help households rebuild after disasters by preserving collateral values and reducing the likelihood that a borrower defaults. Insurance directly reduces the risks for mortgage lenders and the Government-Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac Mortgage Lenders therefore require property insurance and the GSEs only purchase mortgages backed by insurers who meet minimum financial strength ratings, which measure insurer solvency and ability to pay claims. The GSEs accept three main rating agencies AM Best, S & P and, more recently, Demotech. And to provide an example, Fannie Mae requires insurers to have at least a B rating from AM Best, or at least an A rating from Demo Tech to accept a mortgage. Now, despite having this policy in place, we find a dramatic rise in mortgages backed by fragile insurers and show that the GSEs and therefore the taxpayers ultimately shoulder a large part of the financial burden. Our research focuses on Florida because of availability of granular insurance market data, and we show that traditional insurers are exiting and the gap is rapidly being filled by insurers, rated by Demotech, which has about 60% market share in Florida today. These insurers are low quality across a range of different financial and operational metrics, and are at a very high risk of becoming insolvent. But despite their risk, these insurers secure high enough ratings to meet the minimum rating requirements set by the GSEs. Our analysis shows that many actually would not be eligible under the methodologies of other rating agencies, implying that in many cases these ratings are inflated and that the GSEs insurer requirements are miscalibrated. 49:20 Dr. Ishita Sen: We next look at how fragile insurers create mortgage market risks. So in the aftermath of Hurricane Irma, homeowners with a policy from one of the insolvent Demotech insurers were significantly more likely to default on their mortgage relative to similar borrowers with policies from stable insurers. This is because insurers that are in financial trouble typically are slower to pay claims or may not pay the full amounts. But this implies severe economic hardships for many, many Floridians despite having expensive insurance coverage in place. However, the pain doesn't just stop there. The financial costs of fragile insurers go well beyond the borders of Florida because lenders often sell mortgages, for example, to the GSEs, and therefore, the risks created by fragile insurers spread from one state to the rest of the financial system through the actions of lenders and rating agencies. In fact, we show two reasons why the GSEs bear a large share of insurance fragility risk. First is that lenders strategically securitize mortgages, offloading loans backed by Demotech insurers to the GSEs in order to limit their counterparty risk exposures. And second, that lenders do not consider insurer risk during mortgage origination for loans that they can sell to the GSEs, even though they do so for loans that they end up retaining, indicating lax insurer screening standards for loans that can be offloaded to the GSEs. 50:55 Dr. Ishita Sen: Before I end, I want to leave you with two numbers. Over 90%. That's our estimate of Demotech's market share among loans that are sold to the GSEs. And 25 times more. That's Demotech's insolvency rate relative to AM Best, among the GSE eligible insurers. 57:15 Glen Mulready: As natural disasters continue to rise, understanding the dynamics of insurance pricing is crucial for both homeowners and policymakers. Homeowners insurance is a fundamental safeguard for what is for many Americans their single largest asset. This important coverage protects against financial loss due to damage or destruction of a home and its contents. However, recent years have seen a notable increase in insurance premiums. One significant driver of this rise is convective storms and other severe weather events. Convective storms, which include phenomena like thunderstorms, tornadoes, and hail, have caused substantial damage in various regions. The cost to repair homes and replace belongings after such events has skyrocketed leading insurance companies to adjust their premiums to cover that increased risk. Beyond convective storms, we've witnessed hurricanes, wildfires, and flooding. These events have not only caused damage, but have also increased the long-term risk profile of many areas. Insurance companies are tasked with managing that risk and have responded by raising premiums to ensure they can cover those potential claims. 58:30 Glen Mulready: Another major factor influencing homeowner's insurance premiums is inflation. Inflation affects the cost of building materials, labor, and other expenses related to home repair and reconstruction. As the cost of living increases, so does the cost of claims for insurers. When the price of lumber, steel, and other essential materials goes up, the expense of repairing or rebuilding homes also rises. Insurance companies must reflect these higher costs in their premiums to maintain financial stability and ensure they can meet those contractual obligations to policyholders. 59:35 Glen Mulready: I believe the most essential aspect of managing insurance premiums is fostering a robust, competitive free market. Competition among insurance companies encourages innovation and efficiency, leading to better pricing and services for consumers. When insurers can properly underwrite and price for risk, they create a more balanced and fair market. This involves using advanced data analytics and modeling techniques to accurately assess the risk levels of different properties. By doing so, insurance companies can offer premiums that reflect the true risk, avoiding excessive charges for low risk homeowners, and ensuring high risk properties are adequately covered. Regulation also plays a crucial role in maintaining a healthy insurance market. Policyholders must strike a balance between consumer protection and allowing insurers the freedom and flexibility to adjust their pricing based on the risk. Overly stringent regulations can stifle competition and lead to market exits, reducing choices for consumers. We've seen this play out most recently in another state where there were artificial caps put in place on premium increases that worked well for consumers in the short term, but then one by one, all of the major insurers began announcing they would cease to write any new homeowners insurance in that state. These are all private companies, and if there's not the freedom and flexibility to price their products properly, they may have to take drastic steps as we've seen. Conversely, a well-regulated market encourages transparency and fairness, ensuring that homeowners have access to the most affordable and adequate coverage options. 1:02:00 Dr. EJ Antoni: I'm a public finance economist and the Richard F. Aster fellow at the Heritage Foundation, where I research fiscal and monetary policy with a particular focus on the Federal Reserve. I am also a senior fellow at the Committee to Unleash Prosperity. 1:02:15 Dr. EJ Antoni: Since January 2021, prices have risen a cumulative 19.3% on average in the American economy. Construction prices for single family homes have risen much faster, up 30.5% during the same time. 1:03:20 Dr. EJ Antoni: Actuarial tables used in underwriting to estimate risk and future losses, as well as calculate premiums, rely heavily on those input costs. When prices increase radically, precisely as has happened over the last several years, old actuarial tables are of significantly less use when pricing premiums because they will grossly understate the future cost to the insurer. The sharp increase in total claim costs since 2019 has resulted in billions of dollars of losses for both insurers and reinsurers prompting large premium increases to stop those losses. This has put significant financial stress on consumers who are already struggling with a cost of living crisis and are now faced with much higher insurance premiums, especially for homeowners insurance. 1:05:10 Dr. EJ Antoni: The increase in claims related to weather events has undoubtedly increased, but it is not due to the climate changing. This is why the insurance and reinsurance markets do not rely heavily on climate modeling when pricing premiums. Furthermore, climate models are inherently subjective, not merely in how the models are constructed, but also by way of the inputs that the modeler uses. In other words, because insufficient data exists to create a predictive model, a human being must make wide ranging assumptions and add those to the model in place of real world data. Thus, those models have no predictive value for insurers. 1:07:40 Sen. Sheldon Whitehoue (D-RI): You say that this combination of demographics, development, and disasters poses a significant risk to our financial system. What do you mean by risk to our financial system Rade Musulin: Well, Senator, if you look at the combination, as has been pointed out, of high growth and wealth accumulation in coastal areas, and you look at just what we've observed in the climate, much less what's predicted in the future, there is significant exposure along the coastline from Maine to Texas. In fact, my family's from New Jersey and there is enormous development on the coast of New Jersey. And if we start to get major hurricanes coming through those areas, the building codes are probably not up to the same standards they are in Florida. And we could be seeing some significant losses, as I believe was pointed out in the recent Federal Reserve study. Sen. Sheldon Whitehoue (D-RI): And how does that create risk to the financial system? Rade Musulin: Well, because it's sort of a set of dominoes, you start with potentially claims issues with the insurers being stressed and not able to pay claims. You have post-event rate increases as we've seen in Florida, you could have situations where people cannot secure insurance because they can't afford it, then that affects their mortgage security and so on and so forth. So there are a number of ways that this could affect the financial system, sir. Sen. Sheldon Whitehoue (D-RI): Cascading beyond the immediate insurer and becoming a national problem. Rade Musulin: Well, I would just note Senator, that in Florida, the real problems started years after we got past Andrew. We got past paying the claims on Andrew, and then the big problems occurred later when we tried to renew the policies. 1:10:50 Sen. Sheldon Whitehouse (D-RI): And you see in this, and I'm quoting you here, parallels in the 2008 financial crisis. What parallels do you see? Dr. Ishita Sen: So just like what happened during the financial crisis, there were rating agencies that gave out high ratings to pools of mortgages backed by subprime loans. Here we have a situation where rating agencies like Demotech are giving out inflated ratings to insurance companies. The end result is sort of the same. There is just too much risk and too many risky mortgages being originated, in this case backed by really low quality insurers that are then entering the financial system. And the consequences of that has to be born by, of course the homeowners, but also the mortgage owners, GSCs (Government Sponsored Enterprises), the lenders, and ultimately the federal and state governments. Sen. Sheldon Whitehouse (D-RI): You say, this will be my last question. The fragility of property insurers is an important channel through which climate risk might threaten the stability of mortgage markets and possibly the financial system. What do you mean when you refer to a risk to the financial system? Dr. Ishita Sen: Well, as I was explaining the GSEs, if there are large losses that the GSEs face, then those losses have to be plugged by somebody. So the taxpayers, that's one channel through which you've got risk to the financial system and the GSE's serve as a backstop in the mortgage market. They may not have the ability or capacity to do so in such a scenario, which affects mortgage backed security prices, which are held by all sorts of financial institutions. So that starts affecting all of these institutions. On the other hand, if you've got a bunch of insurers failing, another channel is these insurers are one of the largest investors in many asset classes like corporate bonds, equities, and so on. And they may have to dump these securities at inopportune times, and that affects the prices of these securities as well. 1:12:45 Sen. Chuck Grassley (R-AI): Dr. Antoni, is there any evidence to support the notion that climate change is the greatest threat to the insurance market? Dr. EJ Antoni: No. Senator, there is not. And part of that has to do again, with the fact that when we look at the models that are used to predict climate change, we simply don't have enough empirical data with which we can input into those models. And so as a result of that, we have to have human assumptions on what we think is going to happen based essentially on a guess. And as a result of that, these models really are not of any predictive value, and that's why these models for the last 50 years have been predicting catastrophic outcomes, none of which have come true. 1:14:45 Glen Mulready: This focus on the rating agencies, I would agree with that if that were the be all end all. But the state insurance commissioners in each 50 states is tasked with the financial solvency of the insurance companies. We do not depend on rating agencies for that. We are doing financial exams on them. We are doing financial analysis every quarter on each one of them. So I would agree if that was the sort of be all end all, forgive that phrase, but it's not at all. And we don't depend very much at all on those rating agencies from our standpoint. 1:22:15 Dr. Ishita Sen: On the point about regulators looking at -- rating agencies is not something that we need to look at. I would just point out that in Florida, if you look at the number of exams that the Demotech rated insurers, that by the way have a 20% insolvency rate relative to 0% for traditional insurers, they get examined at the same rate as the traditional insurers like Farmers and AllState get examined, which is not something that you would expect if you're more risky. You would expect regulators to come look at them much, much more frequently. And the risk-based capital requirements that we have currently, which were designed in the 1980s, they're just not sensitive enough to new risks like wildfire and hurricanes and so on. And also not as well designed for under-diversified insurance companies because if so, all of these insurers were meeting the risk-based capital requirements, however, at the same time going insolvent at the rate of 20%. So those two things don't really go hand in hand. 1:23:25 Dr. Ishita Sen: Ultimately what the solution is is something that is obviously the main question that we are here to answer, but I would say that it is extremely hard to really figure out what the solution is, in part because we are not in a position right now to even answer some basic facts about how big the problem is, what exactly the numbers look like. For instance, we do not know basic facts about how much coverage people have in different places, how much they're paying. And when I say we don't know, we don't know this at a granular enough level because the data does not exist. And the first step towards designing any policy would be for us to know exactly how bad the problem is. And then we come up with a solution for that and start to evaluate these different policy responses. Right now we are trying to make policy blindfolded. 1:23:50 Sen. Ron Johnson (R-WI): So we've had testimony before this committee that we've already spent $5-6 trillion. That's 5,000 to 6,000 billion dollars trying to mitigate climate change. We haven't made a dent in it. Their estimates, it's going to cost tens of trillions of dollars every year to reach net zero. So again, this is not the solution for a real problem, which is the broken insurance market. I have enough Wisconsin residents who live on the Gulf Coast in Florida to know after Hurricane Ian, you got some real problems in Florida. But fixing climate change isn't the solution. 1:33:15 Sen. Jeff Merkley (D-OR): In looking at the materials I saw that Citizens Property Insurance Company, I gather that's Louisiana and Florida, that have a completely state backed program. Well, alright, so if the state becomes the insurer of last resort and they now suffer the same losses that a regular private insurance company is suffering, now the folks in the state are carrying massive debt. So that doesn't seem like a great solution. Dr. Ishita Sen: That's definitely a problem, right? The problem is of course, that whether the state then has the fiscal capacity to actually withstand a big loss, like a big hurricane season, which is a concern that was raised about Citizens. And in such a scenario then in a world where they do not have enough tax revenue, then they would have to go into financial markets, try to borrow money, which could be very costly and so on. So fiscally it's going to be very challenging for many cities and many municipalities and counties and so on. 1:36:40 Sen. Mitt Romney (R-UT): I wish there were something we could do that would reduce the climate change we're seeing and the warming of the planet. But I've seen absolutely nothing proposed by anyone that reduces CO2 emissions, methane gases and the heating of the planet. Climate change is going to happen because of the development in China and Indonesia and Brazil, and the only thing that actually makes any measurable impact at all is putting a price on carbon, and no one seems to be willing to consider doing that. Everything else that's being talked about on the climate — Democratic Senator: I got two bills. Sen. Mitt Romney (R-UT): I know you and I are, but you guys had reconciliation. You could have done it all by yourselves and you didn't. So the idea that somehow we're going to fix climate and solve the insurance problem is pie in the sky. That's avoiding the reality that we can't fix climate because that's a global issue, not an American issue. Anyway, let me turn back to insurance. 1:38:30 Sen. Mitt Romney (R-UT): So the question is, what actions can we take? Fiscal reform? Yes, to try and deal with inflation. Except I want to note something, Mr. Antoni, because you're esteemed at the Heritage Foundation. 72% of federal spending is not part of the budget we vote on. So we talk about Biden wants to spend all this.... 72% we don't vote on; we only vote on 28%. Half of that is the military. We Republicans want more military spending, not less. So that means the other 14%, which the Democrats want to expand, there's no way we can reduce the 14% enough to have any impact on the massive deficits we're seeing. So there's going to have to be a broader analysis of what we have to do to reign in our fiscal challenges. I just want to underscore that. I would say a second thing we can do, besides fiscal reform and dealing with inflation, is stopping subsidizing high risk areas. Basically subsidizing people to build expensive places along the coast and in places that are at risk of wildfire. And we subsidize that and that creates huge financial risk to the system. And finally, mitigation of one kind or another. That's the other thing we can do is all sorts of mitigation: forestry management, having people move in places that are not high risk. But if you want to live in a big house on the coast, you're gonna have to spend a lot of money to insure it or take huge risk. That's just the reality. So those are the three I come up with. Stop the subsidy, mitigation, and fiscal reform. What else am I missing, Mr. Musulin? And I'm just going to go down the line for those that are sort of in this area to give me your perspectives. Rade Musulin: Well, thank you, Senator. And I'd agree with all those things. And I'd also add that we need to start thinking about future-proofing our building codes and land use policies. The sea levels are rising. If you're going to build a house that's supposed to last 75 years, you ought to be thinking about the climate in 75 years when you give somebody a permit to build there. So I'd say that's important. I'd also say that large disasters also drive inflation because it puts more pressure and demand on labor and materials. More disasters means supplies that could have been used to build new homes for Americans or diverted to rebuild homes in the past. So certainly doing things to reduce the vulnerability of properties and improve their resilience is important. And I do think, sir, that there are things we can do about climate change with respect over periods of decades that can make a difference in the long run. Thank you. Sen. Mitt Romney (R-UT): Thank you. Yes. Dr. Ishita Sen: So before that, the one point about inflation that we are missing, which is without doubt it is a contributing factor, but the US has had inflation in the past without such an acute crisis in insurance markets. So whether that is the biggest cause or not is up for debate. I don't think we have reached a conclusion on inflation being the biggest contributor of rising insurance cost. Sen. Mitt Romney (R-UT): It's just a big one. You'd agree It's a big one? Dr. Ishita Sen: I agree. It's a big one, but I wouldn't say it's the biggest one in terms of policy solutions. I completely agree with you on, we need to stop subsidizing building in high risk areas. That's definitely one of the things we need to do that. Mitigation, another point that you bring up. And on that, I would say not only do we need to harden our homes, but we also need to harden our financial institutions, our banks, and our insurance companies in order to make them withstand really large climate shocks that are for sure coming their way. Sen. Mitt Romney (R-UT): Thank You, Ms. Wood. I'm going to let you pass on this just because that's not your area of expertise. Your experience was something which focused our thinking today. Mr. Mulready. Glen Mulready: Thank you, Senator. I would say amen to your comments, but I'll give you three quick things. Number one, FEMA has a survey out that states that every $1 spent in mitigation saves $6 in lost claims. It pays off. Number two, unfortunately, a lot of communities have to have a disaster happen. In Moore, Oklahoma, back a dozen years ago, an EF5 (tornado) hit, it was just totally devastating. After that, the city of Moore changed their zoning, they changed their building zoning codes, and then third, the city of Tulsa, back in the eighties, had horrible flooding happened. So they invested over decades in infrastructure to prevent flooding. Now we're one of only two communities in the country that are Class one NFIP rated. 1:45:40 Sen. Chris Van Hollen (D-MD): One way to address this, and I think it was discussed in a different matter, is the need to get the data and to get consensus on where the risks lie, which is why last year Senator Whitehouse, Senator Warren and I sent a letter to the Treasury Department, to the Federal Insurance Office (FIO), urging them to collect information from different states. I'm a supporter of a state-based insurance system for property and casualty insurance, but I do think it would benefit all of us to have a sort of national yardstick against which we can measure what's happening. So Dr. Sen, could you talk a little bit about the benefit of having a common source of insurance data through the FIO and how that could benefit state regulators and benefit all of us? Dr. Ishita Sen: Yeah, absolutely. Thanks for bringing that up. That's just the first order importance, I think, because we don't even know the basic facts about this problem at a granular enough level. The risks here are local, and so we need to know what's going zip code-by-zip code, census tract-by-census tract, and for regulators to be able to figure out exactly how much risk is sitting with each of these insurance companies they need to know how much policies they're writing, what's the type of coverage they're selling in, what are the cancellations looking like in different zip codes. Only then can they figure out exactly how exposed these different insurers are, and then they can start designing policy about whether the risk-based capital ratios look alright or not, or should we put a surcharge on wildfires or hurricanes and so on? And we do need a comprehensive picture. We just can't have a particular state regulator look at the risks in that state, because of course, the insurer is selling insurance all over the country and we need to get a comprehensive picture of all of that. 1:47:40 Sen. Chris Van Hollen: I appreciate that. I gather that the Treasury Department is getting some resistance from some state insurance regulators. I hope we can overcome that because I'm not sure why anyone would want to deny the American people the benefit of the facts here. 1:48:45 Rade Musulin: I will just note that sometimes climate change itself can contribute to the inflation we've been talking about. For example, there were beetle infestations and droughts and fires in Canada, which decimated some of the lumber crop and led to a fivefold increase in the cost of lumber a few years ago. So some of this claims inflation is actually related to climate change, and I think we need to address that. 1:49:35 Glen Mulready: If you didn't know, the NAIC, National Association of Insurance Commission is in the midst of a data collection right now that will collect that data for at least 80% of the homeowner's market. And we have an agreement with FIO (Federal Insurance Office) to be sharing that data with them. They originally came to us, I got a letter from FIO and they were requesting data that we did not actually collect at the zip code level, and they had a very stringent timeline for that. So my response, it wasn't, no, it was just, look, we can't meet that timeline. We don't collect that today. We can in the future. But from that is where this has grown the data called by the NEIC. Sen. Chris Van Hollen (D-MD): So I appreciate, I saw that there had been now this effort on behalf of the....So has this now been worked out? Are there any states that are objecting, to your knowledge at this point in time, in terms of sharing data? Glen Mulready: I don't know about specific states. We will be collecting data that will represent at least 80% of the market share. Music by Editing Production Assistance
In March, the Senate received testimony from the Chair of the National Transportation Safety Board about some transportation related dangers that you should know about. In this episode, hear testimony about those dangers, including those posed by airborne tourism companies, electric vehicles, and self driving technology. You will also hear a stunning NTSB finding about a likely profit-prioritization decision of railroad company Norfolk Southern, which unnecessarily lead to the poisoning of East Palestine, OH. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Traffic Fatalities National Center for Statistics and Analysis. April 2024. National Highway Traffic Safety Administration. Helicopter Crashes May 10, 2022. National Transportation Safety Board. n.d. National Transportation Safety Board. Audio Sources March 6, 2024 Senate Committee on Commerce, Science & Transportation Witnesses: Jennifer Homendy, Chair, National Transportation Safety Board Clips Sen. Eric Schmitt (R-MO): I did have some questions. I know that Senator Fisher mentioned some of this earlier as relates to electric vehicles. The weight of some of these vehicles, including, I know you mentioned the battery alone can be the weight of a Honda Civic or a Toyota Corolla, and so there's certainly safety issues there. It relates to guardrails and other vehicles on the road. You would agree with that, right? Jennifer Homendy: Yes. Sen. Eric Schmitt (R-MO): There's also issues, I wanna talk about our infrastructure too. The weight of these vehicles, the strain that it can have on parking garages, roads, and bridges. The amount of money that will be expended to either reinforce or repair. Who is looking at this? Because we have a mandate for auto manufacturers to produce 50% of their fleet to be electric vehicles by 2030. I know there's a new rule in the works to have that number increased. I don't know if it's 65% or 75% by 2032, that's being considered. So it seems to me we're entering this phase as it relates to these mandates for electric vehicles and all of these repercussions, all of these ancillary concerns, I don't know who's addressing it, so I'm asking you, are you guys looking at this? Who is looking at this? Because this seems to be a disaster on the horizon for the American people and our infrastructure, but I don't hear a lot of talk about it. Jennifer Homendy: Thank you, Senator. I have raised this consistently over the past year and a half, starting with a transportation research board where I raised concerns with respect to increasing size and weight of all vehicles, but particularly the weight of electric vehicles that we really needed to look at the safety impact, not just on crashes, but to our infrastructure as well, and protecting people. The whole reason why we have a guardrail is to protect people when there is a crash. Yet it wouldn't withstand some of the crashes with some of these high weights of heavy vehicles, including heavy electric vehicles as was demonstrated by the University of Nebraska. Somebody needs to take action here. We have repeatedly flagged it. It is within the Department of Transportation's purview to do that, and I encourage them strongly to get ahead of it. We're behind right now. Sen. Eric Schmitt (R-MO): As it relates to first responders who are responding to crashes that lithium batteries are involved with, what is your take on the safety for our first responders as they're responding to these EV crashes? Jennifer Homendy: It's a significant danger. We issued a report just a few years ago raising concerns regarding a number of crashes that we investigated involving electric vehicles and the risk to emergency responders from stranded energy inside the battery and components and the significant potential for shock. We also raised concerns with respect to secondary responders, which are the tow truck operators because we saw many of these vehicles reigniting on the tow truck and up to five days later in the tow yard. Sen. JD Vance (R-OH): February 3rd, 2023 derailment of the train. Is it true that Norfolk Southern's contractors monitored temperatures on one of the chemical tank cars from the afternoon of February 5th into the afternoon of February 6th, which is when the controlled burn happened, and communicated their initial readings to Oxy Vinyls, the shippers in charge of the vinyl chloride cars? Jennifer Homendy: That's accurate, Senator. Sen. JD Vance (R-OH): Is it true that these readings indicated an initial temperature of 135 degrees Fahrenheit at 4:00 PM on February 5th, which eventually declined to 126 degrees Fahrenheit at 9:30 AM on February 6th, at which point it stabilized? Jennifer Homendy: That's correct, Senator. It was stabilized well before the vent and burn. Many hours before. Sen. JD Vance (R-OH): So declining temperatures, you would think, and stabilized temperatures are consistent, not with something that needs to be exploded, but with something that can be dealt with in a slightly less, less catastrophic way. At least that's my read on it. But is it true that the chemical shipper Oxy Vinyls concluded that the reported and stabilized tank car temperatures were too low for a runaway chemical reaction, meaning the sort of thing that would lead to an uncontrolled explosion? Jennifer Homendy: That's correct. They had testified that polymerization was not occurring. In order for polymerization to occur, which was Norfolk Southern and their contractor's justification for the vent and burn. You would have to have rapidly increasing temperatures and some sort of infusion of oxygen, neither of which occurred. Sen. JD Vance (R-OH): Right. And just to be clear, you would need both of those things. It's not an either/or. You need both of them to precipitate polymerization, which would lead to an uncontrolled... Jennifer Homendy: Correct. Sen. JD Vance (R-OH): So is it true that Norfolk Southern's contractors testified to the NTSB that they were not certain a chemical reaction was occurring in the derailed vinyl chloride tank car? Jennifer Homendy: They testified to that, yes sir. Sen. JD Vance (R-OH): Is it correct that the chemical shippers testified that there was no free radical agent or sufficient heat trajectory to justify Norfolk Southern Contractor's assessment that a chemical reaction was occurring? Jennifer Homendy: That's correct. Sen. JD Vance (R-OH): So from this assessment, is it your understanding that Norfolk Southern's contractors lacked scientific basis to support their conclusion that polymerization was occurring in the derailed VCM tank cars? Jennifer Homendy: Yes, in fact, they were informed by Oxy vinyls of the information that should have been taken by the contractors in their decision making. But yes, they did not have that. They lacked the scientific background to address that.Sen. JD Vance (R-OH): So let me just go to one final question here. We combine all these facts together. Your reporting thus far concludes that Norfolk Southern's contractors recommendation to conduct a controlled burn lacked sufficient scientific basis, disregarded available temperature data and contradicted expert feedback from the shipping firm on site. Now, this was all told to the decision makers on the ground, they had to make a decision in less than 13 minutes to blow up all five of these toxic chemical cars without any other voices being included to offer a contrary opinion. Is that right? Jennifer Homendy: That's correct. Sen. JD Vance (R-OH): So again, I appreciate your work on this, but just to sort of summarize, this is an extraordinary finding. We were told effectively that there were two bad options. The uncontrolled burn -- excuse me, the controlled burn or the uncontrolled explosion. And it seems based on the data that we have that there was not a ton of reason to do the controlled burn. And that of course is what spread toxic chemicals all over this community and the surrounding region. It's really an extraordinary finding. It goes to highlight the importance of your work. But I also have to note that residents on the ground talk about the fact that immediately after the controlled burn, they moved the tank cars and train traffic was moving through their town and moving through their community. I won't ask you to speak to motivations here, but when you have an unnecessary controlled burn that poisoned a lot of people, that then led to rapid transit of train traffic, a lot of people, including me, are wondering, did they do this not because it was necessary, but because it allowed them to move traffic and freight more quickly. And if so, that is an extraordinary thing that I think requires a lot of further work from this committee and from others. But we will stop there. Because I see my time is up. Thank you. Chair Homendy. Jennifer Homendy: May I add something to that? Senator, I would say the factual information in our docket shows that Oxy Vinyls was on scene and providing information to Norfolk Southern and their contractors on the fourth, fifth, and sixth. They informed them that they believed polymerization was not occurring and there was no justification to do a vent and burn. Rightfully, Norfolk Southern's contractors ruled out hot tapping and transloading 'cause it would've been a potential safety issue for their employees. But there was another option. Let it cool down. It was cooling down. We know for a fact that when that pressure relief device went off, that it had to have been above 185 degrees. Later, over the course of 22 hours, that tank car was cooling, not to mention the other four tank cars that were only between 64 and 69 degrees. So Oxy Vinyls was on scene providing information to Norfolk Southern's contractor who was in the room when the decision was made and when advice was given to the governor of Ohio, to the incident commander. They were not given full information because no one was told Oxy Vinyl was on scene. They were left out of the room. The incident commander didn't even know they existed. Neither did the governor. So they were provided incomplete information to make a decision. Sen. Tammy Baldwin (D-WI): I'm wondering if you could provide a status update on how you view the current safety standards for helicopter air tours. And do you believe that the safety provisions included in the Senate version of the FAA bill would improve the safety of these tours? Jennifer Homendy: Thank you very much for your work on this issue and for Senator Schatz's work on this issue. I think it's critical. The NTSB believes in one level of safety. As before I became NTSB chair or before I worked on the Committee on Transportation and Infrastructure, if I showed up with my family to take an air tour, I would not know to ask what are the qualifications of the crew? What are your operating standards? What are your operating rules? What are your maintenance procedures? You wouldn't normally ask those questions. If you are somebody who shows up for a parachute jump flight, you think my biggest risk is jumping out of the plane, not getting on the plane, which also crashed in Hawaii. So we believe you're a paying passenger, whether you're on part 1 21, part 1 35, part 91, you deserve the same level of safety. And we have advocated strongly for a set of regulatory standards that address just that. We've seen no action on that. This is something I have been extremely passionate about since I came to the board, whether it was flyNYON in New York, where we literally listened to some people's last moments that were strapped into a helicopter on an air tour with a Home Depot harness that was supposed to hold them in and they couldn't unhook it, they drowned. That is horrific. So still we don't have the standards we've recommended. We did an entire report on ensuring safety in revenue passenger operations under part 91. We looked at incidents or accidents, terrible tragedies in Hawaii, Arizona, I mentioned New York, Connecticut with a B 17, historic adventure flight that crashed. And each time we continue to say safety needs to improve and each time we've been ignored. The public deserves better. FAA should issue standards to ensure their safety. Jennifer Homendy: So the derailment rate is sort of a combined rate from mainline track and for the yards. We are seeing a significant increase in derailments and tragedies in the yards. That is where we're very concerned about employee safety. We've seen that repeatedly. We've issued a number of recommendations. We have a lot of open investigations. For Norfolk Southern alone we have eight investigations that are currently open, and we're also doing a safety culture review separate from East Palestine. But in particular we have 190 safety recommendations that we've issued that are currently open to improve rail safety. Whether it's preventing fatigue or providing for increased inspection or new technologies to supplement, not supplant workers, supplement the work to ensure safety. Those 190 have not been acted upon. Happy to provide those for the hearing record, but they can be today and I hope they will. Sen. Ed Markey (D-MA): Now I'd like to turn to the significant risk posed by autonomous vehicles. In the past eight years, the NTSB has investigated multiple incidents involving autonomous driving technologies like Tesla's autopilot system that are designed to operate in specific road conditions, particularly on highways. In fact, in 2016, NTSB recommended that the National Highway Traffic Safety Administration and auto manufacturers restrict drivers from activating these systems outside those road conditions. It's long past time that we take firm control of the wheel and steer towards safety and implement this recommendation. So, Madam Chair, can you briefly explain the reasoning for this recommendation? Jennifer Homendy: Yes. And in fact, I thought this may come up because this is a, you're a champion on this issue, and I just pulled Tesla's statement on, which is really their limitations on operational design domain. They warn on their website for those who have vehicles, that some of their automation will not work in some areas, including areas of poor visibility, heavy rain, snow, fog, bright light, oncoming headlights, direct sunlight, mud, ice, snow, interference or obstruction by objects mounted onto the vehicle, narrow, high-curvature, or winding roads and damaged or misaligned bumper, an extremely hot or cold temperature, an area where the vehicle is not designed to operate using that technology. Who reads that? We have to make -- Sen. Ed Markey (D-MA): Well, that just leaves backing out of the driveway and then going back into your car again. Because other than that, you're out on the road. This isn't like the postal service through rain, sleet, snow, gloom of night. They're saying, well, the sunlight might affect it or the snow might affect it, or rainy conditions might affect it. Or winding roads might affect it. So as I'm listening to that description, it sounds like to me it's not ready for prime time. It's not ready to be handed over to people who have grown up with a car that they drive, where they expect the brakes or the steering wheel to all work, no matter where they're going, and not, oh, by the way, this thing that you just turned on could be extremely dangerous for your two kids in the backseat. Jennifer Homendy: Well, and if it's only designed to be operated in a certain type of environment, it should be limited to those environments. We issued that recommendation to Tesla following the 2016 tragedy in Williston, Florida. We issued the same recommendation to NHTSA. We issued it again. Both have failed to act on those recommendations. Music by Editing Production Assistance
President Biden has signed three new laws containing policy changes that will have long lasting effects on the people of Palestine. In this episode, seven months into the ongoing destruction of Gaza, see what Congress and the President have enacted in your name. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Recommended Sources for Gaza News Background Sources Recommended Congressional Dish Episodes Who Pays for Corporate Media 2024. iSpot.tv. 2024. iSpot.tv. Hamas Dan De Luce et al. April 18, 2024. NBC News. December 29, 2023. International Court of Justice. Abdelali Ragad et al. November 27, 2023. BBC. Destruction of Khan Yunis Bisan Owda. May 21, 2024. AJ+ (@ajplus) and Al Jazeera English (@aljazeeraenglish) on Instagram. Israel’s Buffer Zone Around Gaza Ruwaida Kamal Amer. May 21, 2024. +972 Magazine. Camille Bressange et al. March 16, 2024. The Wall Street Journal. February 2, 2024. Jon Gambrell. AP News. Dov Liber et al. January 25, 2024. The Wall Street Journal. Loveday Morris et al. January 24, 2024. The Washington Post. Israeli Settlements March 20, 2024. CNN on YouTube. Amira Hass. March 12, 2024. Haaretz. Julia Frankel. February 23, 2024. AP News. Nir Hasson and Rachel Fink. January 28, 2024. Haaretz. Itai Weiss. December 27, 2023. Haaretz. Hagar Shezaf. December 11, 2020. Haaretz. Updated February 2, 2024. Encyclopedia Britannica. AI Kill List Isaac Chotiner. April 12, 2024. The New Yorker. April 5, 2024. Amy Goodman and Yuval Abraham. Democracy Now! Avi Scharf. April 5, 2024. Haaretz. Ishaan Tharoor. April 5, 2024. The Washington Post. April 3, 2024. The Guardian. Yuval Abraham. April 3, 2024. +972 Magazine. Yuval Abraham. November 30, 2023. +972 Magazine. Patrick Kingsley and Ronen Bergman. Updated Oct. 18, 2023. The New York Times. Ami Rokhax Domba. February 14, 2023. Israel Defense. Tamir Eshel. June 13, 2021. Defense Update. Israelis Who Died in October October 19, 2023. Haaretz. Massacre at al-Shifa Hospital Tareq S. Hajjaj. April 11, 2024. Mondoweiss. Abeer Salman et al. April 1, 2024. CNN. Supplemental Funding April 24, 2024. The Washington Post. April 21, 2024. PBS NewsHour. UNRWA Ayesha Rascoe and Jackie Northam. April 28, 2024. NPR. Emanuel Fabian. February 16, 2024. The Times of Israel. Who Governs Palestine Noa Rone. March 8, 2024. Unpacked. UN Human Rights Council Updated April 5, 2024. United Nations Human Rights Council. April 18, 2023. United Nations General Assembly. ‘Detainee’ treatment February 19, 2024. Office of the United Nations High Commissioner for Human Rights. United Nations Information Service. July 10, 2023. Office of the United Nations High Commissioner for Human Rights. Suppression of Journalism March 20, 2023. Jewish News Syndicate. January 24, 2002. BBC. Why It’s Not a War Ajit Singh (@ajitxsingh). November 14, 2023. X. Francesca Albanese. November 14, 2023. National Press Club of Australia on Youtube. Torture in Israeli Detention Facilities May 11, 2024. Middle East Eye on YouTube. CNN's International Investigations and Visuals teams. May 11, 2024. CNN. Netta Ahituv. May 4, 2024. Haaretz. Leahy Amendment Ben Samuels. April 27, 2024. Haaretz. International Criminal Court Michel Martin and John Bellinger III on All Things Considered. April 16, 2022. NPR. Laws Audio Sources May 5, 2024 Al Jazeera English on Instagram (@aljazeeraenglish) Imran Khan: If you are watching this prerecorded report, then Al Jazeera has been banned in the territory of Israel. On April the first, the Knesset, the Israeli parliament, passed a law that allowed the Prime Minister to ban Al Jazeera. He's now enacted that law. Let me just take you through some of the definitions. Within the law, they've banned our website, including anything that has the option of entering or accessing the website, even passwords that are needed whether they're paid or not, and whether it's stored on Israeli servers or outside of Israel. The website is now inaccessible. They're also banning any device used for providing content. That includes my mobile phone. If I use that to do any kind of news gathering, then the Israelis can simply confiscate it. Our internet access provider, the guy that simply hosts aljazeera.net, is also in danger of being fined if they host the website. The Al Jazeera TV channel [is] completely banned. Transmission by any kind of content provider is also banned and holding offices or operating them in the territory of Israel by the channel. Also, once again, any devices used to provide content for the channel can be taken away by the Israelis. It's a wide ranging ban. We don't know how long it'll be in place for, but it does cover this territory of the state of Israel. May 5, 2024 Al Jazeera English on YouTube Cyril Vanier: So what does the war look like, as presented by Israeli media to Israelis? Gideon Levy: Very, very simple picture. We are the victims. We are the only victims, as usual. There was the 7th of October, and we will stick to the 7th of October, which was almost the Holocaust in the eyes of most of the Israelis and this 7th of October enables us and legitimizes us to do whatever we want in Gaza. Gaza doesn't interest us. Gaza is Hamas and Hamas, Gaza. And therefore, we should punish them all, and if possible, even kill them al, destroy them all, and we will. We have no interest to see what's the suffer[ing] of Gaza, what's the punishment of Gaza, what the innocent people of Gaza are going through. We are only interested in the brave soldiers, the hostages and the victims of the 7th of October. That's our world, and that's the world that the Israeli media as a whole is describing to its viewers for seven months now, seven days a week, 24 hours a day. Only this, you don't see Gaza. April 10, 2024 House Foreign Affairs Committee Witnesses: Samantha Power, Administrator, U.S. Agency for International Development Clips 47:15 Samantha Power: Again, you had very little, almost no child malnutrition before October 7, and you now have a massive spike. And particularly in the north, one in three kids are suffering from malnutrition. And again, the reports of famine also spreading to the south. It makes sense because so little assistance has gotten in commensurate to the needs of more than 2 million people. 1:13:55 Samantha Power: My understanding - this is something that Secretary Blinken is managing and you'll have a chance I'm sure to engage him on - but the national security memorandum 20 that was issued not long ago is taking 620 I and those elements into consideration. I think that report is due out in early May. 1:41:40 Samantha Power: You know well, because you've been in so many of these countries, we don't have an NGO out there -- This is not your traditional UN agency, where you can have like schools in a box, teachers in a box, health workers in a box. Hamas was the state and Hamas won the election back in the day. And Hamas had far too much influence on certain individuals, or even certain individuals were, it seems, potentially part of Hamas. But the fact is, the administration of schools and health systems was UNRWA. There's not an NGO or another UN agency that could perform the function of a State like that, or at least I haven't encountered one in my years of humanitarian service. 2:02:20 Samantha Power: One little parenthetical is, Israel, about a month ago, in light of the horrific allegations, made a decision that UNRWA could not participate in convoys to the north - humanitarian convoys. But what that meant was, fundamentally there could be no convoys to the north because you can't, as bombs are falling and kinetic operations are underway and terrorists are being pursued, suddenly invent an entire humanitarian infrastructure. 2:17:20 Rep. Joaquin Castro (D-TX): I want to ask you obviously about the very urgent situation humanitarian situation in Gaza. In your testimony, you said that the entire population of Gaza is living under the threat of famine. News reports came out recently that certain USAID officials sent a cable to the National Security Council warning that famine is already likely occurring in parts of the Gaza Strip. According to the report "famine conditions are most severe and widespread in northern Gaza, which is under Israeli control." Do you think that it's plausible or likely that parts of Gaza and particularly northern Gaza, are already experiencing famine? Samantha Power: Well, the methodology that the IPC used is one that we had our experts scrub, it's one that's relied upon in other settings, and that is their assessments and we believe that assessment is credible. Rep. Joaquin Castro (D-TX): So there's a famine is already occurring there. Samantha Power: That is… Rep. Joaquin Castro (D-TX): Yes, okay. 2:18:14 Rep. Joaquin Castro (D-TX): More than half of the population of Gaza is under the age of 18, as you know, and are seriously affected by the lack of access to food and nutrition. Various organizations, including the United Nations, have warned that hundreds of thousands of Palestinian children may die if they don't get necessary food and nutrition assistance in just the next two to three weeks. Has USAID made such an assessment itself? And do you have a sense of how many such children might be at risk of dying if they don't get access to food and nutrition that's currently unavailable? Samantha Power: I do not have those assessments on hand. But I will say that in northern Gaza, the rate of malnutrition, prior to October 7, was almost zero. And it is now one in three, one in three kids. But extrapolating out is hard. And I will say just with some humility, because it is so hard to move around in Gaza, because the access challenges that give rise in part to the malnutrition are so severe, it is also hard to do the kind of scaled assessments that we would wish to do. But in terms of actual severe acute malnutrition for under fives, that rate was 16% in January, and became 30% in February, and we're awaiting the the March numbers, but we expect it to -- Rep. Joaquin Castro (D-TX): So it got markedly worse. Samantha Power: Markedly worse. But extrapolating and giving you the overall numbers… Rep. Joaquin Castro (D-TX): And just to be clear, I realize you're not part of the DoD or the State Department even, working on these issues diplomatically. But is it your understanding that humanitarian assistance and food assistance is not supposed to be denied even when countries are at war with each other? Because there is this argument that if Hamas would release the hostages, if they would surrender, that this would stop, but there's certain laws of war and certain conduct that nations are supposed to follow, and that includes allowing for humanitarian assistance. Samantha Power: Correct. I mean, I will say, of course, we all agree the hostages should be released, absolutely. An absolute outrage that they had been kept this long and the horror and terror for their families, the families of those individuals I can't even contemplate but yes, food must flow. Rep. Joaquin Castro (D-TX): Kids can't be starved because you have two groups that are at war with each other. Samantha Power: Food must flow and food has not flowed in sufficient quantities to avoid this imminent famine in the south and these conditions that are giving rise already to child deaths in the north. 2:29:20 Samantha Power: Again, trusted partners like World Food Programme and UNICEF and others have not reported that Hamas is getting in the way of distributing humanitarian assistance. And I will say, nor are we getting those reports from the IDF who are present on the ground in Gaza. Rep. Kathy Manning (D-NC): I have been getting reports, in fact, that Hamas is targeting, punishing or hindering Palestinians who are working with the international community to provide humanitarian assistance. You have not seen any evidence of that? Samantha Power: I would be very interested in those reports, but that is not what our partners are reporting back to us. Rep. Kathy Manning (D-NC): Do you believe that Hamas is benefiting from the aid that we are providing to Gaza? Samantha Power: I mean, I don't even know how to think about that question in this moment when Hamas is on the run and being pursued across Gaza. So, you know, I don't think they are in a position, because of what the IDF is doing, to benefit per se. Would family members of Hamas potentially begin getting access at a food distribution? You know, that's possible. It's going to civilians. Rep. Kathy Manning (D-NC): Do you have any idea how Hamas fighters are getting their food? Samantha Power: I don't. Rep. Kathy Manning (D-NC): So it is a difficult balance to strike when we desperately want to make sure that innocent Palestinians don't suffer and don't starve, but we don't want to do anything to embolden Hamas. 2:46:10 Rep. Michael Lawler (R-NY): There was already serious concern with the operations of UNRWA prior to the administration's decision to cut funding. Further this past November, I led floor debate to pass the Peace and Tolerance in Palestinian Education Act, which discussed the anti-Jewish and anti-Israel curricula taught to children in Gaza and the West Bank, a curriculum taught by UNRWA employees. So while yes, we appreciate the prohibition on new funding in January, this is long overdue, as there were clear and present issues that UNRWA that look like were ignored by the administration. 2:48:45 Samantha Power: Putting people who want to eliminate another people in power is not anything that anybody would have wished. But the effect is that the governing institution had significant leverage over the UN agency that was carrying out -- Rep. Michael Lawler (R-NY): A terrorist state that has had control over this agency, which is in part why we have pushed to defund it. Would you support future year Appropriations defunding UNRWA? Samantha Power: I don't know if you've had a chance to talk to the King of Jordan, for example. Rep. Michael Lawler (R-NY): I've had dinner with him, in Jordan. Samantha Power: And about what it is going to mean for the Jordanian people to have 2 million young people basically looking for where their schools are going to get support. Now, it may be that the Europeans and others come in and address this issue and it doesn't -- Rep. Michael Lawler (R-NY): Defunding UNWRA does not mean that we don't deal with humanitarian issues. It doesn't mean that we don't -- Samantha Power: No, no but it just is the school system. Rep. Michael Lawler (R-NY): It doesn't mean that we don't deal with it, it means we find a different vehicle by which to do this, but UNRWA itself has proven to be corrupt. Samantha Power: You've been here for much of the exchange. There's no NGO, there's no UN agency that creates school systems. There's no, like, U haul where there's a school system that you just deploy in Jordan, to educate 2.6 million Jordanian kids, it just doesn't work that way. Rep. Michael Lawler (R-NY): Respectfully, being snide about it is not actually solving the issue here. The reality is UNRWA is not the vehicle by which we should be sending American taxpayer dollars at this point. It's just not. Samantha Power: We will follow the law. Rep. Michael Lawler (R-NY): Right, my question to you was, do you support moving forward? Samantha Power: I'm describing the benefits of educating young people across the region and providing health services, and I'm not seeing a viable alternative. So I would suggest -- Rep. Michael Lawler (R-NY): So you believe we should continue? Samantha Power: I think, first of all, we don't know what Gaza is going to look like after this war ends. Hopefully, Hamas will be dismantled and new institutions will be in place whereby they will take care of educating their own young people, and you won't need a UN agency to do it. But it is extremely important that we look out for young people in Gaza, it is going to do nobody any favors for them not to have access to an education Rep. Michael Lawler (R-NY): No, the fact is, on October 7, part of the reason that you had that type of terrorist attack is because of the level of hatred and anti-semitism that is taught in schools in Gaza. That is part of the problem here. And UNRWA helped in terms of allowing for that to occur under the guise of a UN agency. It is disgusting. It is shameful, and the fact that we as the United States have helped support that organization helped fund it is an embarrassment. And that's why we fought to defund it. 3:00:00 Rep. Madeleine Dean (D-PA): I am hypercritical of the alleged 12 or 15, who may have been infiltrating as Hamas, who may have participated in the October 7, horrendous barbaric attack. But you don't throw everybody and all the good work out. Because I want to ask you, if we continue this pause, if the world said we will not help you UNRWA, your however many thousands of workers who are on the ground, who keep coming to work even when their whole families are killed, what will happen with famine in Gaza, if we just shut it down? No more UNRWA. By the way, they're not educating. We know that they can't even do that now. They have incredibly important vaccines and medical aid to to be a part of, but the essentialness of food and water. What happens if we continue this disinformation campaign of 'Defund UNRWA'? Samantha Power: Well, first, thank you for bringing some facts into the conversation that I probably should have raised before, including just the horrific loss of life for those who work for UNRWA. And in general, you know, more than 228 workers killed by IDF or in my IDF military operations to this point, including, most recently of course, the World Central Kitchen colleagues, devastatingly. And thank you also for reminding us all. UNRWA is an organization in Gaza alone of 13,000 people. The vast majority of those people have not been propagating hate but have been actually trying to educate young people. The literacy rate in Gaza-West Bank, I think, is something like 99%. It's one of the most effective literacy efforts in any of the places that USAID works. In terms of what would happen if the whole thing shut down....Right now, it looks like other countries are stepping up to avert that scenario. But, you know, I just cannot overstate how chaotic and how horrific the conditions in Gaza are. You've spoken to them. The visuals speak to the level of destruction. There's no work-around for the infrastructure that they provide. After the war, when there's a new administration of Gaza, if that comes about, obviously, that's itself extremely complicated. You know, the question of who is providing education as they try to rebuild virtually everything from scratch and the education and the health sector? You know, some of these questions will be will be addressed. But right now, there is no way to avert large scale famine without relying on the humanitarian backbone that has been enriched for decades, and that remains UNRWA today. We are going to follow the law, we are going to work through other partners. But, I started to say this earlier: even the government of Israel, which had banned UNRWA's participation in convoys, because of the food crisis - and US engagement, I hope - has now decided that UNRWA can in fact be part of convoys going to the North because they recognize there's just no other way. Rep. Madeleine Dean (D-PA): Right. And I want to commend to anybody to please meet with the director of UNRWA who is stationed in Rafah: a 20-plus-year US military veteran. I don't know how people stay at this kind of work with the risks that they are taking, but they are there. Music by Editing Production Assistance
“FISA 702” allows the government to spy on foreigners and store the information that they collect about American citizens incidentally. After more than a decade of FBI officials inappropriately searching the database of our information without warrants, Congress just reauthorized the program and made some changes - some reigning the program in and some expanding it. In this episode, learn what those changes are and how they are likely to affect you. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes FISA Jasper Ward. April 20, 2024. Reuters. Luke Goldstein. April 12, 2024. The American Prospect. Zeba Siddiqui. May 19, 2023. Reuters. April 21, 2022. U.S. Foreign Intelligence Surveillance Court. December 2019. U.S. Department of Justice, Office of the Inspector General. Edward C. Liu. April 13, 2016. Congressional Research Service. History of Surveillance Mark Klein. November 8, 2007. C-SPAN Washington Journal. James Risen and Eric Lichtblau. December 16, 2005. The New York Times. NSA Spy Center Kashmir Hill. March 4, 2013. Forbes. James Bamford. March 15, 2012. Wired. PRISM program T.C. Sottek and Janus Kopfstein. July 17, 2013. The Verge. Laws Vote Breakdowns Audio Sources April 19, 2024 April 12, 2024 Speakers: November 8, 2007 C-SPAN Washington Journal Music by Editing Production Assistance
After an unprecedented embassy bombing followed by an unprecedented drone and missile attack, Israel and Iran may have us on the brink of WWIII. In this episode, as Congress and the Biden administration ponder additional support for Israel, we take a look at what has already been approved for Israel in the 2024 defense authorization and funding law. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Netanyahu Howard Eissenstat. Sept 20, 2012. Slate. Akiva Eldar. February 10, 2009. Haaretz. Attacks on U.S. Bases Ken Klippenstein. February 9, 2024. The Intercept. Doug G. Ware. November 6, 2023. Stars and Stripes. Doug G. Ware. October 31, 2023. Stars and Stripes. Iran-Israel Conflict David Hearst. April 15, 2024. Middle East Eye. Tom Spender. April 15, 2024. BBC. Ken Klippenstein and Daniel Boguslaw. April 14, 2024. The Intercept. Barak Ravid. April 14, 2024. Axios. Ben Samuels. April 14, 2024. Haaretz. Cassandra Vinograd and Natan Odenheimer. April 14, 2024. The New York Times. Permanent Mission of I.R.Iran to UN, NY (@Iran_UN). April 13, 2024. Ellen Knickmeyer and Lolita C. Baldor. April 3, 2024. PBS NewsHour. Fear of U.S. War with Iran Ali Vaez. April 15, 2024. Foreign Affairs. Murtaza Hussain. April 14, 2024. The Intercept. Carol E. Lee et al. April 14, 2024. NBC News. Uri Misgav. November 23, 2023. Haaretz. Julian Borger. December 17, 2023. The Guardian. Marwan Bishara. October 9, 2023. Aljazeera. Defense funding for Israel Yuval Azulay. April 15, 2024.” CTech by Calcalist. Noah Robertson. November 15, 2023. Defense News. Jeremy M. Sharp. March 1, 2023. Congressional Research Service via EveryCRSReport.com. Raytheon. 2021. Rafael. Jeremy M. Sharp. September 30, 2014. Congressional Research Service via EveryCRSReport.com. Tony Capaccio. May 27, 2014. Bloomberg. January 7, 2014. Boeing. Boeing and Raytheon Campaign Contributions and Lobbying Open Secrets. Open Secrets. Open Secrets. Open Secrets. Foreign Military Financing Nathan J. Lucas and Michael J. Vassalotti. February 21, 2020. Congressional Research Service via EveryCRSReport.com. March 2017. Defense Security Cooperation Agency, U.S. Department of Defense.* Abraham Accords U.S. Department of State. Jordan Zvi Bar’el. April 15, 2024. Haaretz. Jonathan Shamir. April 16, 2023. Haaretz. Saudi Arabia April 14, 2024. Al Arabiya English. Laws Executive Producer Recommended Sources King Abdullah. 1947. From the Internet Archive, originally published in The American Magazine. Music by Editing Production Assistance
A bill is quickly moving through Congress that supposedly would “ban TikTok.” While it is clearly aimed at TikTok, this bill is really about creating a new Presidential power to remove Americans’ access to apps, websites, games and other entire tech platforms. In this episode, using the text of the bill itself, we examine how exactly this new censorship power would work if the bill passes the Senate and becomes law. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Not a TikTok Ban Bill Drew Harwell et al. March 13, 2024. The Washington Post. David E. Sanger. March 13, 2024. The New York Times. Aamer Madhani. March 8, 2024. AP News. Opposition to the bill Jenna Leventoff. March 13, 2024. ACLU. Access Now et al. March 12, 2024. ACLU. How we got here Dan Primack. March 12, 2024. Axios. Samantha Delouya and Brian Fung. November 30, 2023. CNN. Emily Baker-White. August 21, 2023. Forbes. November 20, 2023. Reuters. Brian Fung. December 30, 2022. CNN. James K. Jackson. February 14, 2020. Congressional Research Service. Grindr Echo Wang. May 13, 2019. Reuters. Jeff Farrah. April 15, 2019. TechCrunch. ByteDance Lily Kuo and Annabelle Timsit. March 13, 2024. The Washington Post. April 16, 2023. TikTok. Censorship and Spying Jonathan Vanian. January 22, 2024. CNBC. May 16, 2023. U.S. Central Intelligence Agency, Office of Public Affairs. Marielle Descalsota. December 27, 2022. Business Insider. Lily Hay Newman. May 7, 2019. Wired. Israel and AIPAC Camille Bressange. March 16, 2024. The Wall Street Journal. Kate Linthicum. March 13, 2024. The Los Angeles Times. Celine Alkhaldi et al. March 8, 2024. CNN. December 3, 2023. Velshi on MSNBC. Rep. Mike Gallagher. November 1, 2023. The Free Press. Mater Dei High School. TikTok September 20, 2021. BBC. The Bill Audio Sources House Floor March 13, 2024 Clips 19:00 Rep. Thomas Massie (R-KY): There was there were some people who were legitimately concerned that this was an overly broad bill and they got an exclusion written into the bill that I want to read. It says the term "covered company" does not include an entity that operates a website or application, whose primary purpose is to allow users to post product reviews, business reviews, or travel information and reviews. Why is this exception in the bill? Why did somebody feel like they needed this exception if the bill itself only covers social media applications that foreign adversaries are running now? 21:15 Rep. Frank Pallone (D-NJ): While this bill establishes a national security framework that could apply to other applications, much of the public attention is focused on TikTok. 23:15 Rep. Michael Gallagher (R-WI): Mr. Speaker, TikTok is a threat to our national security because it is owned by ByteDance, which does the bidding of the Chinese Communist Party. We know this because ByteDance’s leadership says so and because Chinese law requires it. This bill, therefore, would force TikTok to break up with the Chinese Communist Party. It does not apply to American companies. It only applies to companies subject to the controlof foreign adversaries defined by Congress. It says nothing about election interference and cannot be turned against any American social media platform. It does not impact websites in general. The only impacted sites are those associated with foreign adversary apps, such as TikTok.com. It can never be used to penalize individuals. The text explicitly prohibits that. It cannot be used to censor speech. It takes no position at all on the content of speech, only foreign adversary control of what is becoming the dominant news platform for Americans under 30. 25:55 Rep. Raja Krishnamoorthi (D-IL): This divestment requirement is not new. It's not without precedent. When the app Grindr, a popular LGBTQ app, was acquired by a Chinese company, and the United States government determined that sensitive data of LGBTQ members of the military and US government officials got into the hands of the Chinese Communist Party, they required divestment. This happened quickly. Why? Because Grindr was a very valuable social media company. The same is true with regard to TikTok, and there will be no disruption to users, just as there was with Grindr. 27:25 Rep. Raja Krishnamoorthi (D-IL): Last week, under the leadership of the Chairwoman and the Ranking Member, they brought up for consideration our bill before the House Energy and Commerce Committee. On the morning of that vote, TikTok, delivered a push notification and a pop up to thousands of users across the country. They used geolocation data targeting minor children to then force them to call congressional offices in order to continue using the app. And in doing so, these children called and they asked the question: what is Congress? And what is a Congressman? This influence campaign illustrates the need for this bill. 29:20 Rep. Warren Davidson (R-OH): The people sponsoring this bill today claim that the real issue is ownership. But who owns this company? It's not 100% owned by Bytedance. 60% of it's owned by investors, including American investors. 20% are owned by the founders and 20% are owned by over 7000 employees. The company's headquarters is not in China, it's in Singapore. And the American user data isn't housed in China. It's housed in Texas, controlled by a database owned by Oracle. 30:20 Rep. Warren Davidson (R-OH): So if we think we can address the privacy concerns, what's left to address? Frankly, content moderation. Remember, before Elon Musk bought the crime scene at Twitter, it was all a conspiracy theory that these algorithms were silencing and canceling people. You guys are crazy. Now when Elon Musk bought Twitter, he did keep it operating with 80% fewer employees. But what we found is a lot of the employees were trying to do content moderation, shape who sees what and how they see it, which algorithms are used, how does it promote certain people and, and filter others? So really, what you're saying here is if you're not fully engaged with America's three letter agencies in content moderation, we plan to 'TikTok' you. And this bill isn't just limited to TikTok. It's a coercive power that can be applied to other apps like Telegram, Tor. Things that provide privacy would be targeted by this bill. 34:20 Rep. Nancy Pelosi (D-CA): First of all, this is not a ban on TikTok. I'm a grandmother of teenagers, I understand the entertainment value, the educational value, communication value, the business value for some businesses on this. This is not an attempt to ban TikTok. Its an attempt to make TikTok better. Tic Tac Toe. A winner, a winner. 41:00 Brett Guthrie (R-KY): I was asked, does this just affect TikTok? And no, it's any foreign adversary, or any app that is owned, controlled or unduly influenced by any foreign adversary. We must protect our national security and help keep America's private data out of the hands of our foreign adversaries. I urge support of this bill, and I yield back. 51:55 Rep. Larry Bucshon (R-IN): After hearing from national security experts last week, it is clear the prolific use of media platforms controlled by the Chinese Communist Party and other foreign adversaries poses a danger to our country. 53:15 Rep. Sydney Kamlager-Dove (D-CA): This bill would greatly expand the Executive's authority to ban tech companies with zero congressional oversight. I cannot sign a blank check to some future president who would easily and dangerously weaponize this legislation to profit in silence. 55:20 Rep. Kat Cammack (R-FL): We aren't banning a company, as the high paid lobbyists for Bytedance - which is owned by China - would lead you to believe. We aren't infringing on constitutionally protected speech or growing the size of government. All we're saying is, Break up with the Chinese Communist Party. 1:02:30 Rep. Thomas Massie (R-KY): Who's going to be prosecuted by this bill? Is it Bytedance or TikTok? Will they be taken to court? No. I mean, they're the target of this, but how do you elicit or effect a ban on them? By prosecuting Americans? The only way you can ban TikTok and the other companies from being here is to say what this bill says, which is the government will bring a civil action suit against you, if you so much as host them here. If you have an app store that allows them to be here, you're an American or an American company and you will be the target of this bill. Those are the only people who can be pursued under this bill and I know it's in order to go after TikTok, or so they say. Music by Editing Production Assistance
As we enter another round of government funding drama, let’s learn the basics. In this episode, we examine how the process is supposed to work, spot the tell tale signs that something has gone wrong, and decipher all of the DC wonky words that make the appropriations process seem more complicated than it really is. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Appropriations February 8, 2023. House of Representatives Committee on Appropriations. Mandatory vs. Discretionary Spending FiscalData.Treasury.gov. Updated October 24, 2022. Center on Budget and Policy Priorities. Government Shutdown February 26, 2024. Committee for a Responsible Federal Budget. Omnibus Bills Andrew Taylor. December 22, 2020. AP News. Earmarks February 9, 2005. Taxpayers for Common Sense. Retrieved from the Wayback Machine version from October 25, 2008. What Happens Next Jamie Dupree. March 5, 2024. Regular Order. Audio Sources House Committee on Appropriations, Subcommittee on Defense January 12, 2022 Witness: Mike McCord, Under Secretary of Defense (Comptroller) Clips 29:51 Mike McCord: First, as I believe you’re all aware a full year CR, we reduce our funding level below what we requested and what we believe we need. On the surface at the department level as a whole, the reduction to our accounts would appear to be about a billion dollars below our request, which would be significant. Even if that was the only impact. The actual reduction in practice will be much greater. Because we would have significant funding that’s misaligned, trapped or frozen in the wrong places and unusable because we don’t have the tools or flexibilities to realign funds on anything like the scam we would need to fix all the problems that the chiefs are going to describe. 30:27 Mike McCord: I know all of you are very familiar with the fact that virtually all military construction projects in each year’s budget including the FY 22 budget are new starts that cannot be executed under a CR. Music by Editing Production Assistance
It’s been four months since President Biden requested over $100 billion in war money for Israel and Ukraine and the Senate has now passed a bill that would provide most of the money. In this episode, we examine the events that lead up to and have occurred since President Biden’s address to the nation, and analyze the Senate bill along with its possible paths to becoming law. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes October 7 Attack Aluf Benn. February 21, 2024. Haaretz. Liza Rozovsky. January 6, 2024. Haaretz. Amos Harel. November 27, 2023. Haaretz. November 18, 2023. Josh Breiner. Haaretz. Hagar Shezaf and Jack Khoury. October 6, 2023. Haaretz. Aftermath of the October 7 Attack Ran Shimoni et al. February 24, 2024. Haaretz. October 20, 2023. White House Briefing Room. Michael D. Shear. October 19, 2023. The New York Times. October 19, 2023. Democracy Now! History of Palestine and Israel Bernard Avishai. February 2024. Harper’s Magazine. October 20, 2023. The World. Directed by Erin Axelman and Sam Eilertsen, produced by Daniel J. Chalfen, Nadia Saah, and Erin Axelman. 2023. OCHA. June 2022. UNICEF. Rashid Khalidi. Macmillan Audio: 2020. Directed by Abby Martin. 2019. Empire Files. Ian Black. Tantor Audio: 2018. Darryl Cooper. 2015-2016. Martyrmade Podcast. April 16, 2015. Defense for Children International - Palestine. March 2012. Visualizing Palestine. Balfour Declaration Zena Al Tahhan. November 2, 2018. Al Jazeera. Lord Arthur James Balfour. November 2, 1917. Jewish Virtual Library. Vanishing Palestine Retrieved on February 27, 2024. Wikipedia: the free Encyclopedia. October 11, 2023. BBC. Hagar Shezaf. December 11, 2020. Haaretz. May 12, 2020. Human Rights Watch. Mitchell Bard. Jewish Virtual Library. Al Jazeera. Alex Hartman et al. December 9, 2004. Adalah – The Legal Center for Arab Minority Rights in Israel. 2003. Creation of Israel 1947. April 1983. United Nations. Lebanon Rania Abouzeid. October 21, 2023. The New Yorker. Tom Perry et al. October 18, 2022. Reuters. Dahiya Doctrine December 7, 2012. Institute for Middle East Understanding. Gabi Siboni. October 2, 2008. INSS Insight. November 23, 2006. UN General Assembly Human Rights Council. Gaza Death Toll AJLabs. Retrieved on February 27, 2024. Al Jazeera. Amna Nawaz and Sonia Kopelev. February 9, 2024. PBS NewsHour. Linda Dayan. December 26, 2023. Haaretz. June 23, 2015. United Nations Office for the Coordination of Humanitarian Affairs. Caabu. Rory McCarthy. September 15, 2009. The Guardian. Post-October 7 Land Grab Henriette Chacar. February 23, 2024. Reuters. Julia Frankel. February 23, 2024. AP News. Liza Rozovsky. February 15, 2024. Haaretz. Nir Hasson and Rachel Fink. January 28, 2024. Haaretz. Abdelraouf Arnaout. January 3, 2024. Anadolu Agency. Itai Weiss. December 27, 2023. Haaretz. Yitzhak Benbaji et al. November 30, 2023. Haaretz. Isaac Chotiner. November 11, 2023. The New Yorker. Uploaded by LocalCall. October 13, 2023. Scribd. Gas Rights Walid Abuhelal. February 20, 2024. Middle East Eye. Israeli Nukes Center for Arms Control and Non-proliferation. Ceasefire Amy Spiro et al. November 30, 2023. The Times of Israel. Omar Shakir. November 29, 2023. Human Rights Watch. The Destruction of Gaza James Mackenzie and Nidal Al-Mughrabi. February 15, 2024. Reuters. Mithil Aggarwal and Yasmine Salam. January 18, 2024. NBC News. Yahya R. Sarraj. December 24, 2023. The New York Times. Gabrielle Tétrault-Farber. December 21, 2023. Reuters. U.S. Aid to Israel Matthew Lee. December 29, 2023. PBS NewsHour. Michael D. Shear and Karoun Demirjian. October 20, 2023. The New York Times. Limiting Aid to Gaza Katie Polglase and Muhammad Darwish. February 21, 2024. CNN. Rachel Fink. February 7, 2024. Haaretz. Lindsey Hilsum. February 5, 2024. Channel 4 News. Jessica Le Masurier. February 5, 2024. France 24. Netanyahu Rejects Two State Solution January 19, 2024. DW. Why Does the U.S. Government Support Israel? OpenSecrets. Real American History Howard Zinn. Harper Audio: 2009. Ukraine Anatol Lieven. February 24, 2024. Time. Border Crisis Jamie Dupree. February 15, 2024. Regular Order. Caitlin Yilek. February 14, 2024. CBS News. Kelly Garrity. February 5, 2024. Politico. Bills Audio Sources February 11, 2024 Bernie Sanders on X October 19, 2023 C-SPAN Executive Producer Recommended Sources Music by Editing Production Assistance
7pm Saturday, January 20 To Share Brewing Company 720 Union St Manchester, NH 03104
Congress is probably going to send approximately $50 billion more, most of that for weapons, to continue the war in Ukraine. In November, high ranking officials from the State Department testified about how the Biden administration intends to use our money and why. In this episode, hear the highlights of their testimony and decide for yourself if you think their goals are worth sacrificing more American money and Ukrainian lives. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes WTF is the World Trade System? Naomi Klein. Picador: 2008. Nicole Narea. October 13, 2023. Vox. Offshore Technology. Ukraine: How We Got Here Branko Marcetic. February 7, 2022. Jacobin. Stanley Reed and Andrew E. Kramer. November 5, 2013. The New York Times. Marieke Ploegmakers. February 5, 2012. All About Feed. Arseniy Yatsenyuk Official Website. Retrieved on December 16, 2023. Wikipedia: The Free Encyclopedia. The Ukraine War, by the Map Defence Intelligence, UK Ministry of Defense. December 15, 2023. GlobalSecurity.org. Visual Journalism Team. November 16, 2023. BBC News. Josh Holder. September 28, 2023. The New York Times. @war_mapper. December 31, 2022. GlobalSecurity.org. U.S. Support for Ukraine Karoun Demirjian. December 6, 2023. The New York Times. The IMF in Ukraine Oleksandra Betliy. May 5, 2023. Carnegie Endowment for International Peace. March 31, 2023. International Monetary Fund. Estelle Nilsson-Julien and Ilaria Federico. March 5, 2023. Euronews. December 21, 2022. International Monetary Fund. Diplomacy Connor Echols. December 1, 2023. Responsible Statecraft. Seymour Hersh. December 1, 2023. Seymour Hersh on Substack. Olena Roshchina. November 24, 2023. Ukrainska Pravda. The Toll of War Jonathan Landay. December 12, 2023. Reuters. John Mazerolle. December 8, 2023. CBC News. Inae Oh. November 8, 2023. Mother Jones. Oleg Sukhov. September 28, 2023. The Kyiv Independent. Israel-Palestine Ian Black. Narrated by Michael Page. Tantor Audio: 2018. Darryl Cooper. The Martyrmade Podcast. Audio Sources November 8, 2023 Senate Foreign Relations Committee Witnesses: , Assistant Secretary of State, European and Eurasian Affairs , Assistant Secretary of State, Energy Resources , Assistant Administrator, Europe and Eurasia, United States Agency for International Development (USAID) Clips 1:55 Sen. Ben Cardin (D-MD): The supplemental funding will strengthen governance and anti-corruption systems. It will improve the resilience of our economies and our energy supply. It will support efforts to come out of the other side of this. We're ready for Ukraine to join EU and also NATO. But this investment in Ukraine goes far beyond its borders. By degrading Russia's military capabilities, we're also degrading the capabilities of those who Russia works with, like Iran, Hamas, and Hezbollah. 10:30 Sen. Ben Cardin (D-MD): First Assistant Secretary of State for European and Eurasian Affairs James O'Brien. Assistant Secretary O'Brien assumed his role just last month after serving as sanctions coordinator at the State Department. He is a former career employee of the department receiving numerous performance awards and serve to previous US administration's as Special Presidential Envoy for hostages and for the Balkans. 11:00 Sen. Ben Cardin (D-MD): The next will be Assistant Secretary for Energy Resources, Jeffrey R. Pyatt. No stranger to this committee, career diplomat Assistant Secretary Pyatt has been in his current role since September 2022. He served as US Ambassador to Greece and Ukraine. He has held numerous leadership positions through out the department and has won numerous awards. 11:25 Sen. Ben Cardin (D-MD): And our third witness is Assistant Administrator Erin McKee, who serves as the Assistant Administrator in the Bureau of Europe and Eurasia at USAID. Prior to this position, she was the US Ambassador to Papua New Guinea and to the Solomon Islands. Prior to her Ambassador appointments, as a member of the Senior Foreign Service she served in numerous leadership roles throughout USAID and the embassies abroad. Before her US government career she developed private sector experience including throughout the former Soviet Union. 14:40 James O'Brien: This is around the Black Sea and Crimea. Ukraine has, through its own ingenuity and with weapons that have been provided, loosened Russia's grip. Russia tried to blockade the ability of Ukraine to export, but now Ukraine is starting to export more grain, more metals. And this is enabling it to pay for more of its war itself. So just a few numbers as we go through this. Ukraine is hoping to get about 8 million tons of grain and metals out through the Black Sea over the course of the next year. If it does that, it will provide about $5-6 billion more for its tax base than it has now. That helps to make up the shortfall that our supplemental will cover for the meantime. But it also then provides the employment for millions of its citizens to work within Ukraine. Now, that is a path to victory where we help Ukraine by providing assistance to have its energy grid strengthened, air defense over its employment centers, and the export routed needs so that it is able to fight this fight over the long term and to hold Russia off thereafter. 15:50 James O'Brien: The military assistance in the supplemental is about $45 billion. That goes to acquire American equipment that Ukraine will then use to pay for American service people to support Ukraine and to pay other countries to acquire American equipment after they provide equipment to Ukraine. 16:05 James O'Brien: The direct budget support that we provide to Ukraine enables Ukraine to put all of its tax dollars to support the war. Ukraine pays for about 60% of the costs of this war right now. The direct budget support pays for hundreds of thousands of educators, first responders, firefighters, and health care professionals to work within Ukraine. 16:55 James O'Brien: The next question is, who's with us? We have more than 40 countries. They provide much more assistance to Ukraine than we do. It's about $91 billion to our $70 billion so far. They've hosted 4.5 million Ukrainian refugees at a cost of around $18 billion. They are proposing another $50 billion in assistance just from the European Union. 17:30 James O'Brien: Right now, Ukrainians are willing to do this job because it's in their territory. If we abandon them, then somebody else is going to have to do this job later and it's likely to be us. So I'd rather confront Russia and its destabilizing attitudes right here, right now, and we can finish the job with the supplemental that we've proposed for your consideration. 18:45 Geoffrey R. Pyatt: For Ukraine, this coming winter promises to be even more challenging than the last. Ukraine's generation capacity has degraded about 50% since the start of the war. Ukrainian energy workers have labored day and night, often under fire, to repair, restore, and harden grid and generation facilities, often by cannibalizing parts from elsewhere. But most spare parts by now have been consumed, and Russia has recently resumed its bombardment of power plants and refineries, including just this morning in eastern Ukraine. 20:50 Geoffrey R. Pyatt: The World Bank has estimated that after last winter, Ukraine needed at least $411 billion to rebuild its infrastructure. That was eight months ago. Every day that number grows. Electricity grid damage alone amounted to $10 billion in 2022. Ukraine's economic future depends on investment by the private sector, and energy is key to unlocking that industrial recovery. 21:25 Geoffrey R. Pyatt: American energy companies like Halliburton, GE, and EQT have been active partners in this effort, providing vital equipment to Ukraine and actively exploring future commercial opportunities. We're working together to build a better future for and with Ukraine -- modern, cleaner, and with a more decentralized power sector that is fully integrated with Europe, even serving as a power exporter to the rest of the European Union. 22:10 Geoffrey R. Pyatt: After the full scale invasion, US LNG producers stepped up to surge supplies to Europe, as our allies turned away from Russia as an energy source. Since 2022, US exporters have supplied the EU with approximately 90 million tons of LNG -- three times as much as the next largest supplier. Last year, 70% of US LNG exports went to Europe. Europe's shift away from Russian energy has happened much faster than predicted, and marks a permanent shift in the International Energy map. 25:30 Erin McKee: In response to the immediate crisis, USAID has provided nearly $2 billion in humanitarian assistance to Ukraine since February of 2022. The generosity of the American people has supplied emergency health care, agriculture and energy support to Ukraine's most vulnerable populations. And thanks to the Congressional appropriations, USAID disbursed reliable, sustained direct budget support to the Ukrainian government, along with unprecedented levels of oversight. This enabled first responders, health care workers, teachers and others to continue their vital work and sustain Ukraine's economy and institutions while they defend their country's freedom and sovereignty. 26:10 Erin McKee: To respond to Russia's weaponization of hunger, USAID launched the Agriculture Resilience Initiative to keep farmers afloat. USAID also works very closely with the private sector to improve Ukraine's energy security and transform Ukraine's energy sector into a modern engine of growth. Side by side with our agriculture and energy efforts is USAID's support to small and medium enterprises, helping Ukraine increase jobs and generate revenue. 26:45 Erin McKee: At this time, there is no funding left for direct budget support. Without further appropriations, the government of Ukraine would need to use emergency measures such as printing money or not paying critical salaries, which could lead to hyperinflation and severely damage the war effort. USAID has also exhausted all of its supplemental humanitarian assistance funds. Additional funding is critical in the face of what remains an enormous need. If Congress does not approve supplemental funding, our partner organizations in Ukraine would have to either reduce the number of people getting this humanitarian assistance by up to 75% or suspend our humanitarian programs entirely. 27:30 Erin McKee: USAID also looks to the future to building resilient infrastructure and institutions that will support Ukraine's path towards European Union integration. For decades, USAID has buttressed Ukraine's progress towards transparent, inclusive and accountable governance. The United States continues to help Ukraine carry out judicial reform, institutionalized transparent financial systems, and respond to the people of Ukraine's zero tolerance for corruption. 33:15 Erin McKee: They have not skipped a beat in advancing the reform agenda. The EU report just came out this morning and both Ukraine and Moldova, and a variety of other countries, received support for continuing and opening chapters of recession talks. That's because our support to strengthening and deepening the institutions fighting corruption in Ukraine have received the top priority from the President. They had to pass and meet conditionality that we put on our direct budget support and did so without blinking. So while they're fighting a war and fighting for their survival, they are 100% dedicated to ensuring that the political economy model that they inherited during the Soviet Union is dismantled, which reflects the will of the Ukrainian people. 34:35 Geoffrey R. Pyatt: And one of the real success stories amid the tragedy of this war is that Europe has turned decisively away from its dependence, up until 2022, on Russian gas in particular. I see that as a permanent change in the landscape. It's reflected in the billions of dollars that European countries have invested in regasification facilities. It's reflected in the contracts that are being signed with American LNG producers. And it's also reflected in Europe's renewed and doubled commitment to accelerating the pace of its energy transition. So ironically, Putin's weaponization of his energy resource has induced Europe to break its vulnerability there and I think that is a permanent change in the landscape. That is also a positive benefit for American energy producers in our leadership on the energy transition. 35:55 Sen. James Risch (R-ID): I want to talk about the nuclear reactors we have in the United States, of which there are 95, give or take a few. Would you tell the committee, please, where does the fuel come from to operate these nuclear facilities? Geoffrey R. Pyatt: So, Ranking Member, about 20% of the fuel that operates our nuclear fleet here in the United States still comes from Russia. The President has included in his latest supplemental request for about $2.2 billion to help rebuild the nuclear enrichment capacity that we need here in the United States to end that dependency. And the administration has also stated its support for a ban on the import of Russian nuclear fuel. 43:30 Erin McKee: Right now Ukraine is able to spend all of their national budget in the fight. They are paying their soldiers salaries, they are dedicated to defeating Putin on the front lines. That means they don't have any resources to take care of their people and govern, which is as vital to keep up the unity of purpose and the resilience that we've seen from the Ukrainian people, because they're all in, both on the civilian and the military side. So the types of services that would be suspended are first responders who rush into the building and save lives, medical care to make sure that inoculations stay up so that the Ukrainian population stays healthy, particularly children's routine immunizations. We heard reports of polio outbreaks and some other concerns during the early days of the mass emigration of folks fleeing the conflict. We also are supporting teachers and continuing education so that they don't lose a generation as a result of Putin's attacks on civilians and civilian infrastructure so that the kids can stay in school, and that those families — Sen. Chris Coons (D-DE): Am I correct that the direct budget support requested gradually goes down over the next year, as the economy becomes more vibrant and we assess Ukraine is able to generate more revenue? Erin McKee: Correct. The direct budget support and their fiscal stability is also vital for the IMF program and other donors stepping in. Our leadership in this space -- and yes, we were first -- unlocked the other support that we've seen mobilized from the EU and other donors, as well as boosting the confidence in the multilaterals to be able to contribute to Ukraine's economic stability, which is as vital as winning the war. If their economy collapses, Putin will have won. 47:55 Sen. Rand Paul (R-KY): As Harvard's Graham Allison points out, if Putin is forced to choose between humiliating defeat on the one hand and escalating the level of destruction, there's every reason to believe he chooses the latter. There's a great deal of evidence that the war in Ukraine has come to a stalemate. Even Ukraine's Commander in Chief of the armed services has admitted as much. In Graham Allison's view, the Ukraine war has escalated far enough to see how bad things would become if we end up in a world where nuclear weapons are used. Allison believes that where we are now, both for Putin's Russia and for the Biden-led US and the Western alliance, it's time to search for an off ramp for all the parties. What is being done at the State Department to search for an off ramp. James O'Brien: Thank you, Senator. A few points. I mean, I can speak to the foreign policy implications. My belief is if we don't stand with Ukraine now, we'll be spending much more on defense in the future. Much of this supplemental goes to reinvest in the United States, so far from rot and ruin, we're actually shoring up the foundations in our energy sector as Assistant Secretary Pyatt — Sen. Rand Paul (R-KY): So your argument is that war and funding war around the world is good for our armaments industry. James O'Brien: I'm saying this supplemental is good for our economy — Sen. Rand Paul (R-KY): For the armaments industry. So really, it's a justification of war. To me, that's sort of reprehensible -- and this is coming from my side as well -- the idea that "Oh, glory be, the war's really not that bad. Broken windows are not that bad, because we pay people to fix them. Broken countries are not so bad, because hey, look, the armaments industry is gonna get billions of dollars out of this." I think that's a terrible argument. I wish y'all would go back to your freedom arguments or something. But the idea that you're going to enrich the armaments manufacturers, I think is reprehensible. James O'Brien: Well, Senator, I'm not making the argument war is good. I'm making the argument, in this case, war is necessary. Sen. Rand Paul (R-KY): And that we can make a little profit on the side. It's not so bad since the armaments guys who make a lot of profit on this, right. James O'Brien: Senator, I think you're proposing a kind of false choice that Ieither have to say that or say nothing. What I'm saying is that our economy rests on a foundation of innovation. And in the supplemental, we're investing in our energy sector — Sen. Rand Paul (R-KY): But the money is borrowed. We're borrowing the money. We don't have it. We don't have a pot of money. So what you're arguing is, in essence, that we borrow the money from China, we send it to Ukraine, Ukraine, sends it back to buy arms from us, and that's a win-win. How do we win when we're borrowing money to pay people. See this is this false sort of argument that "oh, look, we'll create five jobs for every dollar we spend," but we're borrowing the money. It doesn't make any sense. It's coming from somewhere where it would be a productive use, into the use of basically fomenting a war and continuing on a war. James O'Brien: No, that's not the choice in front of us, Senator. And I'm sorry that you feel that that's the way you want to frame it. The choice in front of us is do we invest in the capacities that allow this war to be won? Those include capacities in energy, in defense, in IT, and they include — Sen. Rand Paul (R-KY): Let's get away from funding the armaments people. You know, I'm not for that. But the original question is, what are you doing to develop an off ramp? You know, when I listen to your presentations, it sounds like the Department of War, I don't hear the Department of diplomacy in front of me. Where are the diplomats? Is anybody talking about negotiation? Do you really believe that Ukraine is gonna push Russia out of out of Ukraine, they're gonna push them out of Crimea, push them out of the East, and that Zelenskyy's is position, "we will not negotiate till they're gone from Ukraine," is viable? And that there's not going to have to be some negotiation beforehand? If you believe that, though, the meat grinder continues and Ukraine will be in utter destruction and tens of thousands more people will die if there is no negotiation. You would think that as a superpower, we would be involved somewhat with encouraging negotiation. But I've heard nothing from you, and nothing from anyone in your administration, frankly, that talks about negotiating. James O'Brien: Well, Senator, then I hope you would sit down and talk with me about what we're doing in this regard. Here, I'll give you a little sense of it. All wars end with a negotiation. We've made clear we'll do that with Ukraine, not over Ukraine's head. It takes two parties to negotiate the end of a war. President Putin is not serious about negotiating the end of the war. He has said he wants to wait and see what happens in November 2024. We're preparing for that eventuality so we can have a negotiation that will actually stick as opposed to the track record of broken agreements that President Putin has made with a whole range of his neighbors up until now. So that's successful diplomacy, not mere diplomacy. Sen. Rand Paul (R-KY): There are actually some who say we're back to about where we started as far as negotiating and tens of thousands of people have died on both sides, and we haven't been successful. But I still hear only war and I don't hear diplomacy. James O'Brien: No but I think what we're looking at is successful diplomacy. I just spent last weekend with 66 countries talking about the basis of a successful peace in Ukraine. Russia didn't show up. That, again, is the problem. You don't have a willing partner on the other side, so simply saying that there must be talks is -- you're asking for a monologue, not diplomacy. 55:00 Sen. Jeff Merkley (D-OR): You know, I'm really struck by the parallel to the journey of Chamberlain to Munich to say, "Okay, Hitler, you can take a third of Czechoslovakia" and then he declared peace in our time, under the assumption that somehow this would not whet Hitler's appetite. Did Chamberlain's strategy work? James O'Brien: No. Sen. Jeff Merkley (D-OR): Will this strategy now, of us bailing on Ukraine to appease Putin, work? James O'Brien: No, it'll invite more aggression. 1:01:40 Sen. Pete Ricketts (R-NE): Do you think we should condition US aid to prevent US tax dollars from supporting PRC-owned or controlled entities from providing the reconstruction? James O'Brien: Senator, we do. That's why it's so important to have the supplemental so that we remain in the game and can set the conditions that make it impossible for opaque, illegitimate contractors like the Chinese to enter. And I know my colleagues can speak at some length about how in energy, telecomms, and other sectors we do exactly that. But if we're not there, then we can't we can't provide the guarantees you want. 1:05:35 James O'Brien: There are about $2.2 billion to go to both the energy supply and to the economic activity that's needed for Ukraine to begin to repair its access to the outside world. That's also important to us. When Russia invaded Ukraine, grain prices went up six times in many places around the world, because Ukraine is an incredibly important part of the global grain trade. The work that AID does to help Ukrainian farmers get their products to market, in the supplemental, the $100 million that is for demining will help farmers get their product to market. All of that directly benefits the markets in which our consumers are a part. So if we do all that, if we can get them to about pre-war export levels, that's an extra $6 billion a year in tax revenue just from the exports, as well as what the industries pay and what happens around the society. Now, Secretary Pritzker, and she should come and testify this herself, she's doing an outstanding job at building a strategy that lets us focus our efforts in key places, so that Ukraine's economy will begin to work and contribute to the global economy, even while this war is going on. All of that works together to make sure that Ukraine can succeed and has the leverage needed when we get to a negotiation, as Senator Paul wants. 1:13:55 Geoffrey R. Pyatt: So I would point out that the greatest threat to the energy grid today are the Shahed drones, which Russia is now beginning to industrialize the production of those. We can talk about that in a classified setting, but there is a direct Iran-Russia nexus in the attacks on Ukraine's energy system. 1:24:10 Geoffrey R. Pyatt: We are working as hard as we can to accelerate that trend. We do that through two mechanisms. One is by accelerating our energy transition, both here in the United States, but also globally, as the Biden administration has done through the Inflation Reduction Act to reduce the dependence on fossil fuels. But the other aspect of this is what we are doing systematically to reduce Russia's future energy revenue. Just last week, for instance, we leveled new sanctions against a project in the in the Arctic, Arctic LNG 2, which is Novatek's flagship LNG project, which Novatek set in motion with the aspiration of developing Russia as the largest LNG exporter in the world. Our objective is to kill that project, and we're doing that through our sanctions, working with our partners in the G7 and beyond. 1:26:00 James O'Brien: Russia is losing its lucrative markets. That's what got it rich enough to afford this war. It's losing out in the sectors of innovation that are going to drive economic development in the future. So we look at this and say, "Does it put pressure on Putin to get to the table?" Well, yes, it does. It's going to take a little time. He started the war with 640 billion in a rainy day fund. By the start of this year, despite record profits last year, he was down around 580, we immobilized 300 of that, and he spent down further from there. So that gives them a year, two years maybe, of run room on that rainy day fund that all came from selling oil and gas. So that's gone. The second thing is that we don't see Russia able to play in the sectors that are going to drive innovation and economic growth in the future. The areas of quantum mechanics, artificial intelligence, the energy transition, including the new nuclear technologies that are coming on board, and Senator Risch, your work on this I really appreciate, because Russia entangled countries in these long term networks of corruption, with generation-long Rosatom contracts. We're now competing for those again, and taking those sectors away from Russia. That changes the long term prospect from what it was. The result of all this is we anticipate that Russia's GDP is going to be at least 20% smaller by 2030 than it would be if Putin had not started this war. So it's a long term strategic loss for him, and it creates a great opportunity for us in a number of important sectors. 1:35:30 Sen. Marco Rubio (R-FL): I understand, and this is not critical. I agree that we can't allow borders to be changed unilaterally and we have to stand with our allies. I'm not diminishing any of those things. But those arguments are too vague. They make sense here, but I'm just telling you they're too vague. This notion that we need to do whatever it takes for however long it takes, is also misguided. Not because that's not necessarily what we need to do, but because that's not going to be enough for people who are asking these questions. I would just say if you had an opportunity, any of you three, or all you three to talk to someone, say someone that came up to me a week ago and said, "Why are we still putting all this money in Ukraine. I hate Putin, I hate what he's done, but we've got all these other things domestically and in other parts of the world that are more important, including China, and now what's happening in the Middle East. How are we going to be spending $60 billion every six months? For how long? Given the debt that we already have?" What would you say to them? And how would you explain to them that this fits into their national interest in that perspective I've just outlined? James O'Brien: That's really well framed, Senator, so I'll do my best here. I think the first thing I'd say is you got to shore up your own base. If we're going to confront China over the next decades, it's 1.4 billion people, that's looking to write the rules that the world economy will run on. We go at them with a coalition of 50-odd countries, Europe is about 600-700 million of that, we're 350 million. With that already, we're set to compete really effectively. Ukraine, though, is a challenge by Putin trying to fray that foundation. So we have to shore that up if we're going to have the heft to compete with China over time. The battle over Ukraine also allows us to reinvigorate our own industrial base, we're creating new energy technologies and putting them in place around the world. We're building new defense technologies, the work that's being done in IT, all of that's included in this supplemental, and that's going to make us better able to defend Taiwan, to work in the South China Sea, than we have otherwise. The final point I'd make is, this is the wrong time to walk away because Ukraine's winning. It's already taken back half the territory Putin seized since February 2022. It opened up the Black Sea grain lanes that Putin tried to shut down in July, did that mostly with its own creativity around a whole set of interesting drones and other technologies that are going to contribute to our security as Ukraine gets closer to NATO. So those are all reasons you don't walk away when you're partway through the job. 1:41:10 Geoffrey R. Pyatt: Ukraine is not a charity case. In economic and development terms, it's an opportunity. Developing that opportunity depends on restoring a level of peace. But as we look to the future, you're going to have a Europe which has decoupled from Russian energy supplies, which means that there's a hole of about 130 BCM per year in energy supply that Europe is going to have to fill. Over the short term, some of that is American LNG, but that's a very expensive option. Ukraine has fantastic resources on wind, on solar, on biomass. It has Europe's second largest civil nuclear industry. It has developed and has demonstrated an extraordinary technological acuity. Just look at how clever Ukrainian soldiers have been in the application of drone technology. These are all the skill sets that Ukraine will need to prosper as a member of the European Union. My colleague, Assistant Administrator McKee, referred to the statement which European President Vanderlaan delivered today welcoming the significant progress that Ukraine has made on its reforms, and her and the Commission's determination to move ahead with Ukraine's accession to the European Union. And I would say as somebody who served as an American ambassador in the EU for six years, what Ukraine represents is a demographically young population, a population which is fantastically committed to the values of the European Union. Ukraine is the only place in the world where people have fought and died under the flag of the EU for the values that are represented in the European constitutions. So I think these are the investments in the leadership that Secretary Pritzker is providing to help our companies and companies around the world begin to make plans for the day after and to work with Ukrainians to keep pushing forward the reforms, which are fundamental to creating the environment where American energy companies, renewable energy companies can come into Ukraine, where we can use Ukraine to help to fill the huge challenges that our global supply chain faces. In the Soviet Union, Ukraine was the center of Soviet metallurgy, the center of Soviet petrochemicals industries, all of those latent skills are still there. You talked about nuclear, Ukraine has a company in Kharkiv, Turboatom, which is one of the few facilities in all of Europe that has the industrial capacity to produce the large steel enclosures that are part of building modern nuclear reactors. So I applaud your focus on this and I know I speak for all three of us and how systematically we're focused on trying to lay the foundation for that better future that the Ukrainian people so richly deserve. 1:53:55 James O'Brien: Ukraine has won back 50% of the territory Russia took since February of 2022. The second piece that's important: Putin is playing a waiting game, like many Muscovite rulers before him. So it's difficult to get a decisive battle. So what we need is what's in the supplemental that has the ability to fight this fight over some time, and we do see real success. So in the Black Sea, Russia attempted to stop Ukraine from exporting. In July, exports were down 2-2.5 million tons; they're already more than doubled, and expect to see them go up substantially more. That's because of what Ukraine has done with its technology and its new weapons systems, more of which would be provided by the supplemental. February 4, 2014 On Demand News on YouTube Speakers: Victoria Nuland, Assistant Secretary of State for European and Eurasian Affairs, 2013-2017 Geoffrey Pyatt, United States Ambassador to Ukraine, 2013-2016 Clips Victoria Nuland: Good. So I don’t think Klitsch [Vitali Klitschko] should go into the government. I don’t think it’s necessary, I don’t think it’s a good idea. Geoffrey Pyatt: Yeah, I mean I guess, in terms of him not going into the government, just sort of letting him stay out and do his political homework and stuff. I’m just thinking in terms of, sort of, the process moving ahead, we want to keep the moderate Democrats together. The problem is going to be Tyahnybok and his guys and I’m sure that’s part of what Yanukovych is calculating on all this. Victoria Nuland: I think Yatz [Arseniy Yatsenyuk] is the guy with the economic experience, the governing experience. He’s the guy. What he needs is Klitsch [Vitali Klitschko] And Tyahnybok On the outside, he needs to be talking to them four times a week. You know, I just think Klitsch [Vitali Klitschko] Going in he’s going to be at that level working for Yatsenyuk it’s just not gonna work. Geoffrey Pyatt: We want to get someone out here with an international personality to come out here and help to midwife this thing. And then the other issue is some kind of outreach to Yanukovych. We’ll probably regroup on that tomorrow as we see how things fall into place. Victoria Nuland: So on that piece, Jeff, I wrote the note, Sullivan’s come back to me saying “you need Biden,” and I said probably tomorrow for an attaboy and get the deets to stick, Biden’s willing. Geoffrey Pyatt: Great. December 19, 2013 The Atlantic Council Speaker: John McCain, U.S. Senator from Arizona, 1987-2018 Clips 16:45 Sen. John McCain: If Ukraine’s political crisis persists or deepens, which is a real possibility, we must support creative Ukrainian efforts to resolve it. Senator Murphy and I heard a few such ideas last weekend—from holding early elections, as the opposition is now demanding, to the institution of a technocratic government with a mandate to make the difficult reforms required for Ukraine’s long-term economic health and sustainable development. Decisions such as these are for Ukrainians to make—no one else—and if they request our assistance, we should provide it where possible. Finally, we must encourage the European Union and the IMF to keep their doors open to Ukraine. Ultimately, the support of both institutions is indispensable for Ukraine’s future. And eventually, a Ukrainian President, either this one or a future one, will be prepared to accept the fundamental choice facing the country, which is this: While there are real short-term costs to the political and economic reforms required for IMF assistance and EU integration, and while President Putin will likely add to these costs by retaliating against Ukraine’s economy, the long-term benefits for Ukraine in taking these tough steps are far greater and almost limitless. This decision cannot be borne by one person alone in Ukraine. Nor should it be. It must be shared—both the risks and the rewards—by all Ukrainians, especially the opposition and business elite. It must also be shared by the EU, the IMF and the United States. All of us in the West should be prepared to help Ukraine, financially and otherwise, to overcome the short-term pain that reforms will require and Russia may inflict. April 20, 1994 Southern Center for International Studies Speaker: Arthur Dunkel, Director-General of the World Trade Organization, 1980-1993 Clips 26:55 Arthur Dunkel: If I look back at the last 25 years, what did we have? We had two worlds: The so-called Market Economy world and the centrally planned world; the centrally planned world disappeared. One of the main challenges of the Uruguay round has been to create a world wide system. I think we have to think of that. Secondly, why a world wide system? Because, basically, I consider that if governments cooperate in trade policy field, you reduce the risks of tension – political tension and even worse than that." Music by Editing Production Assistance
December is busy season in a Congress that has done nothing all year. In this bonus episode - which features Congressional Dish host Jen Briney as a guest on the December 1st episode of Politics, Politics, Politics with Justin Robert Young - we take a look at what we expect in Congress during the final month of a Congressionally chaotic year. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via  Support Congressional Dish via  (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to:  Please make checks payable to Congressional Dish Thank you for supporting truly independent media!   Listen to the full December 1 episode of Politics, Politics, Politics
Two members of Congress, one from each side of the aisle and each branch of Congress, are currently under criminal indictment, yet are steadfastly clinging to their roles as lawmakers. In this episode, we’ve got the dirt straight from the criminal indictments of Rep. George Santos of New York and Sen. Bob Menendez of New Jersey. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Sen. Bob Menendez The Indictment Egypt Aysha Bagchi and Josh Meyer. November 13, 2023. USA Today. Mark Mazzetti and Vivian Yee. October 14, 2023. The New York Times. Larry Neumeister. October 12, 2023. AP. Nicole Hong et al. October 1, 2023. The New York Times. Jeremy M. Sharp. May 2, 2023. Congressional Research Service. Grand Ethiopian Renaissance Dam October 24, 2020. BBC News. September 2, 2020. The New York Times. Marriage Nina Burleigh. October 31, 2023. Intelligencer. Previous Indictment Nick Corasaniti and Nate Schweber. November 16, 2017. The New York Times. April 1, 2015. U.S. Department of Justice, Office of Public Affairs. Initial Appointment to Senate Marek Fuchs. December 9, 2005. The New York Times. Rep. George Santos The Indictment House Ethics Committee Investigation November 16, 2023. House Ethics Committee. November 9, 2023. House Ethics Committee, Investigative Subcommittee. Brazil Fraud Case Andrew DePietro. October 21, 2022. Forbes. Expulsion Attempts Kevin Freking. November 17, 2023. PBS NewsHour. Kevin Freking and Stephen Groves. November 2, 2023. AP. Wealthiest Districts Andrew DePietro. October 21, 2022. Forbes. IRS Doesn’t Fight Dark Money Maya Miller. April 18, 2019. ProPublica. Bills Audio Sources October 28, 2023 Chat Box with David Cruz Clips 3:25 Sen. Bob Menendez (D-NJ): You know, I have drawn from my personal credit union savings account, for the better part of 30 years, $400 every week in cash. And while that may seem old fashioned, some people may think of it as crazy, the reality is that the government has those records. They have the accounts that show that and they chose not to use it. So, you know, this is why I look forward to being in a position to actually speak to these issues, so that New Jerseyans will have a different set of facts than the ones they have right now. 5:20 Sen. Bob Menendez (D-NJ): I was not barred from going into an intelligence briefing. I still have all of my intelligence credentials. 7:20 Sen. Bob Menendez (D-NJ): I have not missed a beat. I've been here for votes and for hearings, and for pursuing the issues that are important to the people in New Jersey. 11:35 Sen. Bob Menendez (D-NJ): I still serve on the Senate Foreign Relations Committee, which gives me a perch on all of these global issues, and I am pursuing them in the same way as I did before. The difference is that I am not leading the [Senate Foreign Relations] Committee, but I am very much active in the Committee pursuing the things that I care about for New Jersey. 15:25 David Cruz: So the considerations that Egypt received, including getting a green light from your committee, the quid pro quo as it were, was Egypt behaving better in exchange for arms sales and other considerations? Sen. Bob Menendez (D-NJ): Each consideration depended upon the nature of the sale, whether it was for example, defensive equipment, whether it was equipment for the Sinai, where they are playing a vital role for security with Israel, which everybody -- Democrats and Republicans -- have called for. So these followed the traditional uses of both foreign aid and arms sales in a way to ensure that the US national security interests was pursued and that's simply the case. 16:15 David Cruz: And in the case of one of your co-defendants receiving a contract to certify halal — Sen. Bob Menendez (D-NJ): I can't answer for my co-defendant, you'll have to ask him. David Cruz: Well, the question is, was it your relations with Egyptian officials that helped ease the way for him to get that contract? Sen. Bob Menendez (D-NJ): David, there's a lot of suggestions. As a matter of fact, as I read the indictment, there's a lot of inferences, but not a lot of facts at the end of the day. Those inferences try to play and create a storyline. That is the most negative pejorative storyline you can create. But when those get challenged by the facts, as we will, in the legal proceedings that both motions and trials will allow us to do, then we will see a totally different story. May 27, 2021 Senate Foreign Relations Committee Witnesses: Robert F. Godec, Acting Assistant Secretary of State, Bureau of African Affairs Sarah Charles, Assistant to the Administrator, Bureau for Humanitarian Assistance, United States Agency for International Development Clips Sen. Bob Menenedez (D-NJ): Then, finally, I will make a comment. It is not a question. I have spoken to the Egyptians on more than one occasion on this issue at their behest. I have a real sense that if the GERD issue is not dealt with in a way that assures them of their concerns about the Nile flowing into what would be the heart of their water supply in Egypt that they will do what is necessary. I do not like red lines, but they have suggested that they have red lines and I take them at their word that they have red lines. Not that they are desirous of doing that. They also have a very strong expression that they hope to have a resolution peacefully, but that they have their own red lines. I hope that we are engaging in that very robustly because the last thing we need, in addition to everything that is going on in Ethiopia, in addition to the possibility of a famine, to the sexual violence that is taking place, is to then have a military conflict over the GERD. So I just seriously hope we are fully engaged and understand where the parties are and how serious some of them are of purpose. Executive Producer Recommended Sources Music by Editing Production Assistance
While the world is distracted, members of Congress are writing bills designed to steal Russia’s money and give it to Ukraine. In this episode, listen to the pitch being made to Congress as we examine if this is a good idea. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Taking the Russian money: is it legal? Lee C. Buchheit and Paul Stephan. October 20, 2023. Lawfare. Chelsey Dulaney and Andrew Duehren. October 11, 2023. The Wall Street Journal. Lawrence H. Summers, Philip Zelikow, and Robert B. Zoellick. June 15, 2023. Foreign Affairs. Paul Stephan. April 26, 2022. Lawfare. Laurence H. Tribe and Jeremy Lewin. April 15, 2022. The New York Times. April 15, 2021. President Joe Biden. White House Briefing Room. What we’re being told about Ukraine Secretary of State Anthony Blinken [@SecBlinken]. November 3, 2023. Twitter. Visual Journalism Team. September 29, 2023. BBC News. June 2023. Reuters. Israel-Hamas War Jaclyn Diaz and Aya Batrawy. November 7, 2023. NPR. Sharon Zhang. November 2, 2023. Bills Audio Sources October 31, 2023 Senate Appropriations Committee Witnesses: Antony Blinken, Secretary, U.S. Department of State Lloyd Austin, Secretary, U.S. Department of Defense Clips 1:05:05 Secretary of State Antony Blinken: If you look at total assistance to Ukraine going back to February of 2022, the United States has provided about $75 billion our allies and partners $90 billion. If you look at budget support, the United States has provided about $22 billion during that period, allies and partners $49 billion during that period; military support, we provided about $43 billion allies and partners $33 billion; humanitarian assistance, the United States $2.3 billion allies and partners 4.5 billion, plus another $18 to $20 billion in caring for the many refugees who went to Europe and outside of Ukraine. October 19, 2023 Commission on Security and Cooperation in Europe (The Helsinki Commission) Witnesses: Eliav Benjamin, Deputy Head of Mission, The Embassy of Israel to the United States Jamil N. Jaffer, Founder and Executive Director, National Security Institute at George Mason University Dr. Jonathan Schanzer, Senior Vice President, Foundation for the Defense of Democracies Dr. Dan Twining, President, International Republican Institute Oksana Markarova, Ukrainian Ambassador to the United States of America Clips 19:25 Eliav Benjamin: Understanding in the most unequivocal manner and in the clearest way that these are evil people. If we can even call them people. This is Israel's 9/11, only if you take the proportion of the size of Israel, this is 9/11 times 10, at least. 20:45 Eliav Benjamin: Because these terrorist organizations are not only against Israelis or against Jews, and not only in Israel, they are against mankind and anything which calls for decency, any entity and anybody who calls for protecting human rights and protecting individuals and protecting civilians. 21:25 Eliav Benjamin: Hamas have no value for human life, while Israel is doing its utmost to protect human life, including Palestinians in Gaza by even calling for them to go down south so that they won't be affected by the war. Hamas is doing everything in its power to harm civilians, to harm its own civilians. And everything that Hamas is committing -- and committed -- is no less than war crimes. And if you want crimes against humanity, and this is while Israel is working within the international human rights law, and within the military law. 28:15 Rep. Steve Cohen (D-TN): Ambassador we have attempted to get some monies to from Putin and from the Soviet Un -- the oligarchs, to help rebuild Ukraine. Do you have any new information about that, or concerns? Oksana Markarova: Thank you for this question. First of all, I think it's very just that all this horrible destruction, which only for the first year of the war the World Bank estimated at $411 billion -- just the physical destruction -- has to be compensated and paid for by the Russians. So with regard to the Russian oligarchs and everyone who finances this war, supports this war, thanks to Congress we already have the possibility to confiscate it through the courts and DOJ has already moved forward with one confiscation of malfeasance money -- $5.4 million, and others. It is going to take time. But I think the major question right now to discuss with all the G7 is the Russian sovereign assets. We know that there are at least in the vicinity of 300-400 billion, or maybe even more, frozen by G7 countries. Not only that, but we recently discovered there are about $200 billion that are frozen in the Euroclear system in Belgium. So I'm very glad that there are more renewed talks right now between the G7 Ministers of Finance on how to confiscate and how to better use this money even now. I think we have to join forces there because again, we're very grateful for the American support, we are very much counting on this additional supplementary budget, but at the end of the day, it's not the American, or Ukrainian, or European taxpayers who have to pay for this, it is the Russians who have to pay for their damages. We look forward to working with Congress and we're working very actively with the administration, the State Department and Treasury, on how to better do it. As the former Minister of Finance, I not only believe -- I know -- that it can be done and I know this is a very specific case, that will not jeopardize the untouchability of the Sovereign Money, which is normal in the normal circumstances. This is a very specific case of a country that has been condemned by 154 countries in the UN for the illegal aggression. We have in all three major cases, the cases against Russia on both aggression and genocide and everything else. And it's only natural and just to use the sovereign assets as well as the private assets of Putin's oligarchs to compensate and to pay this. 32:50 Eliav Benjamin: Look at the charter of Hamas, which calls for destruction, annihilation of Jews, of Israel and yes, wants to control everything from the Mediterranean Sea until the Jordan River. 33:00 Eliav Benjamin: That is their aspiration, that is what they want to do, with zero care about civilians, including their own whom they take us human shields. As we're speak now, they're firing rockets from underneath hospitals, from underneath schools, from underneath mosques, from within residential areas, putting their own people at risk and sending them to die as well. This is not what Israel is about, but this is what Hamas is about and has been about. And now once and for all, unfortunately, really unfortunately, it took such a horrific war that they launched on Israel for the whole world to realize what Hamas is really about and what we've been saying for so many years that Hamas stands for. But it's not only Hamas: it's Hamas, it's the Palestinian Islamic Jihad, it's Hezbollah, it's all of these terrorist organizations who have zero care about human beings. This is who we should go after, and make sure they don't do any more harm. 39:10 Jamil Jaffer: It was the single deadliest day in Israel's history, single deadliest day for the worldwide Jewish community since the Holocaust. The equivalent of over a dozen 9/11 attacks on a population adjusted basis. Let me say it again. On the day of the 9/11 attacks, we had about 280 million Americans and we lost approximately 3000 Americans that day. Israel has lost 1400 have their own in a population of approximately 9 million -- over a dozen 9/11 attacks. 41:15 Jamil Jaffer: There's a key connection between these two fights. We know that Iran today supplies all manner of drones to Russia in its fight in Ukraine. We know that Iran has troops on the ground in Ukraine, training Russians on the use of those drones. We know that Iran is considering providing short range ballistic missiles to Russia, in that conflict. Russia, for its part, has provided Iran with its primary source of Conventional Munitions and nuclear technology for the vast majority of the time. Now, the key connection between these organizations is important to note. It's not just Russia and Iran; it's China and North Korea as well. These are all globally repressive nation states. They repress their own people, they hold them back, they give them no opportunity, and then they seek to export that repression to other parts of the globe, first in their immediate neighborhood, and then more broadly across the world. These nations are increasingly working together. We see China and Russia's no-limits partnership. We see President Xi saying to President Putin, in an off hand conversation that the world heard, that there are changes that haven't been seen in 100 years, and Russia and China are leading those changes. We know that for decades, Iran and North Korea have cooperated on ballistic missile and nuclear technology. We know that today in the fight in Gaza, Hamas is using North Korean rocket propelled grenades. So the reality is these globally repressive nation states have long been working together. And it is incumbent upon the United States to stand with our friends in Ukraine and our allies in Israel in this fight against global repression. 41:35 Dr. Dan Twining: It's vital not to mistake Hamas's control of Gaza with legitimacy. There have been no elections in Gaza since 2006. Hamas will not hold them because it thinks it will lose. Polling from September, a month ago, shows that only a quarter of Palestinians support Hamas leading the Palestinian people. Before the conflict, 77% of Palestinians told pollsters they wanted elections as soon as possible. A super majority tells pollsters that Hamas is corrupt. It is a terrorist organization, not a governing authority that seeks better lives for Palestinians. Residents of Gaza suffer poverty, isolation, and violence at its hands. 43:25 Dr. Jonathan Schanzer: Israel has just suffered in Iran-sponsored massacre, Ukraine is struggling to repel Russian forces, and Taiwan watches with grave concern as China threatens to invade. America must view these three embattled democracies as important assets. And it must view these three adversaries as a threat to the US-led world order. As we speak, there is a very real possibility of a regional war erupting in the Middle East. The Islamic Republic of Iran has armed and funded Hamas and Hezbollah along with other factions in the region. Recent reports point to the existence of an Iranian-led nerve center in Beirut that is designed to help these terrorist groups target Israel more efficiently. Fortunately, the IDF has thwarted Iranian efforts to create a new terror proxy in the Golan Heights. Israel has repeatedly destroyed most, if not all, of what Iran is trying to stand up there. However, Iran-backed militias do remain in Syria, and Russia's presence in Syria is complicated all of this. Moscow's missile defense systems have forced Israel to take significant precautions in the ongoing effort to prevent the smuggling of advanced Iranian weapons from Syria to Lebanon. These are precision guided munitions. We've never seen a non-state actor or a terrorist group acquire these before and Russia is making this more difficult. The operations to destroy these weapons in Syria are ongoing. They often take place with Russian knowledge. It's an uneasy arrangement and because of that, the Syrian front is still manageable, but Russia's role in the region is far from positive. Moscow continues to work closely with both Iran and Hezbollah. In fact, Russian-Iranian relations have deepened considerably since Russia's invasion of Ukraine in 2022. This goes beyond the sanctions busting that was the basis of their relationship before all this started. Russia has received UAVs from Iran, which we've heard today, Tehran has sent advisors to train Russian personnel, and since last summer, Russia has launched over 2000 Iranian UAVs into Ukraine. Moscow now wants to produce some of these UAVs domestically and so Russia and Iran are currently working together to increase the drones' range and speed. Iran has supplied other material to Russia like artillery shells and rockets. In return, Tehran wants Russia to provide fighter jets, attack helicopters, radar and combat trainer aircraft, and more. Moscow has sent to Tehran some captured Western weapons from Ukraine. These include javelin, NLAW anti-tank guided missiles, and Stinger MANPADS. Amidst all of this, on top of it all, concerns are mounting about a Chinese invasion of Taiwan. Beijing has openly intimidated the island nation. Within a 24 hour time span in July, 16 PLA warships approached Taiwan, accompanied with over 100 different aircraft sorties. China's calculus about an invasion of Taiwan could be influenced heavily right now by what the United States does in Ukraine and in Israel. Ihe landscape is clear: China, Iran and Russia are working together. Our policy must be to deny them the ability to threaten our friends and our interests. 47:45 Dr. Jonathan Schanzer: It's great news. I was gonna recommend it, but it's already happened: the United States has sent two of its Iron Dome batteries based in Guam to Israel, en route already. 52:15 Dr. Dan Twining: If America's three greatest adversaries are going to actively collaborate in armed attacks on our allies, that's all the more reason for us to ensure that friendly democracies prevail in the fight. Giving Ukraine and Israel what they need to restore their sovereignty and security is essential. Appeasing aggression in one theater only invites belligerence in another. Make no mistake, China is watching our reaction to the wars on Ukraine and Israel with great interest. If we don't show the will and staying power to help our friends win, we only embolden Chinese designs in Asia. Defeating aggression in Europe and the Middle East is central to deterring aggression in Asia. 1:09:55 Dr. Jonathan Schanzer: I am going to use the current crisis right now to sort of explain how America can get a win. That attack by Hamas was sponsored by Iran. Hamas is an Iran-back terrorist organization that also enjoys the support of China and Russia. As Israel has now readied to go into the Gaza Strip and to destroy this terrorist organization with the support of the United States, we're now seeing Iran-backed proxies threaten a much wider war. We're watching Hezbollah and Lebanon, Shiite militias in Syria, potentially other groups in other parts of the region. What needs to happen here right now is America needs to determine the outcome of this conflict. And by that, I mean it needs to deter Iran, it needs to deter Hezbollah and any other actor that might intervene, and force them to watch helplessly as our ally destroys Hamas. Watch them look on helplessly as one of their important pieces is removed from the chessboard. If we can do that, then I think we're now in the process of reestablishing deterrence after having lost it for many years. 1:14:15 Sen. Sheldon Whitehouse (D-RI): Along with Ranking Member [Jim] Risch, I'm the lead on the what we call the REPO Act, which would authorize the President to work with other countries in Europe that are also home to frozen Russian sovereign assets, and create a procedure for seizing those assets and directing them to Ukraine to be used for rebuilding and other purposes. I think there are mixed feelings in the administration about this, but they seem to be moving our way. I'd love to have your thoughts on the value of grabbing those sovereign assets, not just as additional resources for Ukraine, but also as a powerful signal to Putin that his behavior is going to have real punishment and hitting him good and hard right in the wallet, I think, would be a good added signal. 1:15:20 Sen. Sheldon Whitehouse (D-RI): The second is simply to make sure that we do a better job of grabbing Russian oligarch assets. We have a predicament right now, which is that if you're a US citizen, and you're driving down the highway and you've got $400,000 in unexplained cash in your car, the police can pull you over and they can seize that. If you are a foreign, Russian, crooked oligarch, and you have a $400 million yacht someplace, you have more rights than that American citizen, in terms of defending your yacht. It's a very simple procedure, it's called "in rem." You move on the yacht rather than having to chase through all the ownership structures. And I would very much like to see us pass a bill that allows us to proceed against foreign oligarchs', criminals', and kleptocrats' assets in rem. 1:16:50 Dr. Jonathan Schanzer: The seizing of assets and redirecting them to Ukraine, I think, sounds like a solid thing for the United States to do. I think, though, it would make sense to do this with a coalition of countries. So that the US is not singled out -- Sen. Sheldon Whitehouse (D-RI): That's what the legislation requires. In fact, the bulk of the funds are actually held in European countries, so acting on our own would not be sensible. Dr. Jonathan Schanzer: It wouldn't be effective, correct. So getting the Europeans on board, and by the way, getting the Europeans to chip in a bit more, just as we are, I think is also a very sound policy. As far as targeting the oligarch assets, I fully understand your frustration. When I worked at the Treasury Department trying to track those kinds of assets was never easy. We did work with a sort of shorthand version of, if we're 80% sure that we know what we're dealing with we're going to move first and then adjudicate after it's been done. And by and large, that worked out very well during the height of the war on terror. And there was an urgency that I think needs to be felt now, as we think about targeting Russian assets too. 1:18:00 Sen. Sheldon Whitehouse (D-RI): To follow me on my path of in rem Latinate legal terms. There's also qui tam out there, which allows individuals to bring fraud actions in the name of the United States, and if it turns out there really is fraud, they get a share of it. It would be nice to have people who work for, let's say, a Russian oligarch to be able to be paid a bit of a bounty if they come in and testify and say, "Yep, definitely his boat every time we go out, he's on it. Every time the guests come they're his guests and we call him boss." Things like that can make a big difference, so we're trying to push that as well. Dr. Jonathan Schanzer: That sounds like something for the Rewards for Justice program at the State Department. They might be able to expand it. We already have bounties for those that provide evidence leading to arrests of terrorists, why not oligarchs? Sen. Sheldon Whitehouse (D-RI): Correct. 1:24:40 Dr. Jonathan Schanzer: Qatar has, for the last 10 or 12 years, had a an external headquarters. Some of [Hamas's] political leadership has been based there: Ismail Haniyeh and Khaled Meshaal both call Qatar home. Of course, this is not new for the Qataris. They've also hosted all manner of other terrorist organizations in that country. It's the Taliban, al Qaeda, ISIS. It's well known at this point that Qatar is a hospitable place. They just don't agree with our definition of terrorism. Fundraising takes place there, all sorts of organizational activities take place there, and people are free to come and go. It is a safe haven for them. It is extremely dangerous that we have bestowed upon that country the label of major non-NATO ally, and that this is allowed to continue. They're offering right now their "good offices" -- I'll put those in air quotes -- to try to negotiate the release of the 302 hostages. This is not in Qatar's is interest. They are advocating on behalf of Hamas, as they have been for a long time. This should not be allowed to stand. 1:28:10 Dr. Jonathan Schanzer: Hezbollah is based in Lebanon primarily, although they've got a significant base of operations in Latin America right now, and of course they've got a lot of operatives running around in Tehran. They are a wholly-owned subsidiary of the regime in Iran. Just to give you a sense of the threat, right now Hezbollah is threatening to open up a second front with Israel. While the fighting rages in Gaza, in the north of Israel there is a second front that could very well be open. There have been dozens of rockets that have been fired, dozens of anti-tank missiles infiltrations into northern Israel. This is very disconcerting. This is one of the things that I think the President is trying to deter at this moment, to deter a second front from opening. Hezbollah is considered to have an army that is equal in strength to the average European army. It has 150,000 rockets right now facing south at Israel. It's got precision guided munitions that could hit strategic targets, like Israel's nuclear facility, or like its chemical plant. These are things that could create catastrophic attacks, and we could be hours or days or weeks away from watching those threats materialize. And so this is why it is imperative right now that the US mount the deterrence that is necessary to stare down Iran and to stare down Hezbollah and to allow Israel to be able to do what it needs to in Gaza and hopefully end this crisis. 1:31:15 Rep. Marc Veasey (D-TX): What does it look like if a Palestinian family of four is being interviewed for safe passage into a neighboring country or nearby country? What exactly does that look like? What does that processing and that vetting look like? Dr. Jonathan Schanzer: I'm going to make a suggestion here. I don't know how that kind of vetting can happen. You know, you're looking at a territory roughly the size of Washington DC, with 2.2 million people that had been subjected to Hamas rule for 16 years. How you start to figure out who's okay and who's not at this stage in the game, who's a threat and who isn't, is going to be really challenging. I wrote a piece in the Wall Street Journal with a colleague of mine, Mark Dubowitz, our CEO, on Monday. I want to make this suggestion: I've already identified a number of the countries that have been Hamas supporters over the years, those that have financed and provided the weapons and the training to Hamas. I think there should be significant pressure on those countries to take in the refugees. Have a clear message from the United States that they created this problem, and it is now their problem to take care of these 2 million people. Quite frankly, I don't care who's radicalized when they go to these countries that have been supporting a radical cause for as long as they have. I think this would be justice. October 18, 2023 House Committee on Foreign Affairs Witnesses: Philip Zelikow, Senior Fellow at Stanford University’s Hoover Institution and White Burkett Miller Professor of History at the University of Virginia Rebeccah Heinrichs, Senior Fellow and Director of the Keystone Defense Initiative at the Hudson Institute Clips 14:35 Rep. Michael McCaul (R-TX): The Russian sovereign assets is a winner in my judgment. If we can tap into the right -- the very people who started this war and this conflict, in my judgment, should be paying for the cost, and not as much the US taxpayer. And that's why I introduced the REPO Act, the bipartisan, bicameral legislation that demands that the Biden administration transfer frozen Russian sovereign assets to the Ukraine effort. It's beyond time that Russia pay for the war that it created. My bill prohibits the Biden administration from unfreezing Russian sovereign assets until Russia ends its unprovoked war of aggression and agrees to compensate Ukraine for the damages it has inflicted. 16:05 Rep. Michael McCaul (R-TX): To be clear, the war crimes and genocide committed by Russia cannot be reversed by money alone. 22:30 Rep. French Hill (R-AK): My approach was crafted to be consistent with US Policy and International Law by amending the International Emergency Economic Powers Act IEEPA, and using its established framework and existing definitions. As a former Treasury official, in my view, this is a better legislative approach. This is consistent with well established international precedent, whereby the United States work with international partners to establish a fund like we saw in Afghanistan in 2022. The Iran-US Claims Tribunal in 1981, the UN compensation fund for Kuwait in 1991, following the invasion by Iraq. 22:40 Rep. French Hill (R-AK): I too have introduced a bill on this topic, HR 5370. And I appreciate the Foreign Affairs staff working with me on that. My bill would give the President authority to seize and transfer title of Russian sovereign assets within the United States jurisdiction into an international fund for the sole purpose of Ukraine's eventual reconstruction and humanitarian relief. I'm grateful to Chairman McCaul and I co-sponsor his bill on this topic, as well for his leadership. 24:10 Rep. French Hill (R-AK): Considering most Russian sovereign assets are actually located outside the United States, it's important for our partners and allies around the world to introduce and pass similar companion legislation rather than having the US act unilaterally. 24:30 Rep. French Hill (R-AK): Let me be clear, I consider Russian Federation sovereign assets inclusive of all state owned enterprise assets and those of Russian publicly traded companies, like Gazprom, that are controlled by more than 50% by the Russian Federation. 26:30 Philip Zelikow: Economic warfare is the real center of gravity in this war. Economic warfare is the center of gravity in the war. I know we all watch the daily updates from the battle front lines. You know, this movement here, that movement there. This is a war of attrition. It's going to be decided by economic and industrial staying power as the war continues almost certainly into 2025 and perhaps beyond. 27:00 Philip Zelikow: In that struggle, the economic warfare against Russia has achieved some gains, and will have some more gains over the long haul. Russia's economic warfare against Ukraine has been devastating and is not sufficiently appreciated. Ukraine lost 30% of its GDP in the first year of the war. 1/3 of the population of Ukraine is displaced, half externally half internally. Russia is waging economic warfare on three main fronts. It's destroying Ukraine's infrastructure, and will do another energy infrastructure war this winter, for which it's gearing up, including with North Korean weapons and Iranian weapons. Point two: they've destroyed Ukraine's ability to export through the Black Sea except for a trickle, which was the fundamental business model of a commodity exporting country. Point three: they have destroyed Ukraine's civil aviation. Ukraine has no civil aviation. Any of you who've traveled, as I have, to Ukraine will notice that you can't fly in the country, which makes travel and business in the country now back to the era of the railroads before there were airplanes. So the the Russian economic warfare against Ukraine is devastating. And as time passes, this is going to have deep effects on the ability of Ukraine's economy and society to hold together, which will play out politically. So point one: economic warfare is the true center of gravity in the war. 28:35 Philip Zelikow: Two, the Russian assets are the key strategy to change the outcome. The Russian assets are at least $280 billion. Now, even in our debased day and age, that's a lot of money. It's a lot of money in the context of the Ukrainian economy. Even using very conservative multipliers of how much private investment the public investment can unlock, let's say one to one, the impact of this money on the whole future prospects of Ukraine and its staying power are decisive. Otherwise, they're relying on US and European taxpayers whose readiness you can gauge. So this is potentially the decisive fulcrum of the economic warfare and Ukraine's prospects in the war. 29:25 Philip Zelikow: So, third point, why has this been so hard? First reason was there was a knee jerk neuralgia on the part of bankers and financiers to the actual confiscation of Russian assets in the foreign exchange holdings, with much talk of losing confidence in the dollar in the euro. On analysis, these worries quickly fall away, which is one reason that I worked with my colleagues, Larry Summers, the former Treasury secretary, and Bob Zoellick, the former president of the World Bank, who do know something about international finance to debunk those concerns. And I'd be glad to go into more detail about why the concerns about the dollar or the euro turn out to be overblown when they're analyzed. 30:10 Philip Zelikow: The other concern was how do we do this legally? There's been a ton of legal confusion about this. This bill will help dispel that legal confusion. 30:30 Philip Zelikow: What about sovereign immunity? Sovereign immunity is a doctrine that only exists in the context of national courts trying to usurp sovereign authority in a situation where it's sovereign on sovereign, whereas in this bill, there would be an act of state that goes after Russian sovereign property. There is no such thing as immunity; there is no doctrine of sovereign immunity. Ordinarily, under international law, if one sovereign takes another sovereign's property, then the loser is entitled to compensation for that nationalization or expropriation. So why isn't Russia entitled for that compensation in this case? Because it's a lawful state countermeasure. Countermeasures are different from sanctions. And countermeasures -- and this is a well recognized body of law -- you are allowed to do things that would ordinarily violate your sovereign obligations to a fellow sovereign, because that sovereign has committed such extreme outlaw behavior, that the countermeasure is a lawful recourse. And that is exactly the extreme case we have here. There is a well codified body of law on this, and Russia has hit every one of the marks for a set of lawful state countermeasures that deprives them of any right to compensation when states take their money and then use it, putting it in escrow to compensate the victims of Russia's aggression. 37:35 Rebeccah Heinrichs: The United States directly benefits from Ukraine's battlefield successes as Russia remains a top tier adversary of the United States. These are the weapons that Americans made and designed specifically to go after the kinds of things that the Ukrainians are destroying in the Russian military. 39:55 Rep. Michael McCaul (R-TX): The EU has a plan just to tax frozen assets and send those proceeds to Ukraine. Our Treasury Secretary, Miss Yellen recently claimed that transferring sovereign assets to Ukraine was not legal. Do you agree with that, and if not, what is your opinion from a legal standpoint? Philip Zelikow: I think Secretary Yellen has now revised her view of this matter, having had a chance to be informed by some of the legal work that's been done since she first made that impromptu remark. There is the legal authority both under domestic law and international law, and the bill this committee is considering would reaffirm, consolidate, and elaborate that authority. So legally, this can be done. 40:55 Philip Zelikow: What the EU came up with in May was the idea -- they were encountering a lot of resistance to actually taking the Russian money, so they said, Well, can we come up with something, since a lot of these as the securities have now matured and are in cash and Euroclear, mainly -- the clearing house in Brussels -- is now managing the cash on behalf of Russia, because Russia is no longer able to manage it. So can we do something with the interest? And by the way, the EU couldn't get that through in June. Ursula von der Leyen couldn't get that adopted over, principally, French and German opposition at the time. So they're talking about just taking this interest. As a legal matter, if you have the legal right to take the interest, you have the legal right to take the principle. This was a cosmetic idea trying to overcome the opposition they had there. It's kind of a situation where, as one of my colleagues in this effort, Larry Tribe, has put it as well, instead of crossing the Rubicon, they're kind of wading in. From a legal point of view, it's actually clearer to do the transfer for Ukraine than to try to expropriate the money using tax authorities, which makes it look like you're expropriating it for your country, rather than for the benefit of the victims, which is a much cleaner, legal way to do it. So they ended up, for political reasons, with a half measure that takes only a tiny fraction of what they should and does so in ways that are actually legally awkward. I understand why they are where they are, but as they process this, I think they're just going to have to step up to going ahead and crossing the Rubicon. 50:20 Philip Zelikow: The whole argument that I made in an article with Summers and Zoellick in Foreign Affairs is that actually, this is a strategy for victory. You put this enormous war chest and the multiplier of private investment into play. And what you can envision is a whole new European recovery program, anchored on the rebuilding of Ukraine that not only saves Ukraine, revitalizes it, but links it to the EU accession process, to the enlargement of the European Union. In other words, to the victory of the whole cause of freedom, in a way almost regardless of where the final battle line ends up being in Ukraine, Ukraine will be growing with bright prospects, part of a Europe with brighter prospects, because of its alignment with the free world. 51:25 Philip Zelikow: When people worry about the significance of this in foreign exchange, I ask them to just remember two numbers 93 and three. If you look at the percentage of foreign exchange holdings held in the world today, 60% United States, 23% Euro, 6% yen, 4% Sterling: that's 93. The percentage of foreign exchange holdings in Chinese renminbi: three. And the Chinese were really encouraged that it's gone up from 2.5 to 3 in recent years. So when you look at 93 to three, that's what you get when we work with our allies in a concerted economic strategy. We can move on the Russian assets, and there's really no choice except to stick with the currencies of the free world because they're still the only basis for being a participant in the world economy. 54:20 Rep. Bill Huizenga (R-MI): Who actually has the authority to take possession of it? Because as you point out, if you've got the legal right to the interest, you got the legal right to the principal. Who is granted that authority? And then who is granted the authority to distribute that? Philip Zelikow: So the theory is that the national governments can transfer any of the Russian state assets in their jurisdiction into escrow accounts for the benefit of the victims, as a state countermeasure to Russia's aggression. So the way that would work is under the President's IEEPA authority, he could transfer all this -- and there are precedents for this -- into an escrow account held in the States and then an international escrow account, with this limited purpose of compensating the victims of Russian aggression, then you need to create an international mechanism, which the US would participate in creating, to then manage that distribution, which needs to have a proactive urgent speed of relevance. Rep. Bill Huizenga (R-MI): That was what I was afraid of. If it just simply takes one participant to bog the whole thing down, guess what? It's not going to work, in my humble opinion. Philip Zelikow: When they're debating this in the EU, some people say we should have a new EU directive to govern this, but under our Common Foreign and Security Policy, one member like Hungary, for example, could botch that. So if you create something perhaps managed by the G7 Donor Coordination Platform, that is a relatively simple instrument in which the United States could play a part. One thing that you've done in the bill you've drafted, Mr. Chairman and Congresswoman Kaptur, is you're creating mechanisms in which Congress has insight and some oversight into how the United States participates in that process, and what the mechanism does and how the money is spent, which I think is an appropriate role for the Congress. There are precedents for how to do this. The design of this international mechanism I'm discussing is both policy driven, but also has a reactive claim side, but can have some conditionality on reform and the EU accession process. That's a heavy lift. Building that mechanism will be the biggest job since we built the Economic Cooperation Administration to run Marshall Plan aid 70 years ago. That serious work has not really begun, because we're just working on the preliminary phase of mobilizing and using this money. 58:25 Rep. Ted Lieu (D-CA): You believe the Administration, even without this bill, has authority right now to transfer the frozen Russian assets to Ukraine. Philip Zelikow: Yes, it does. It has it under the existing IEEPA authorities that the President has already invoked. The Renew Democracy Initiative has put out a really extensive legal brief that goes into great detail about this. I think actually the administration's lawyers are coming around to the view that yes, they do have the authority under existing law. What the REPO Act does is, one, it reaffirms that, but two, it makes Congress a partner in this with regulation and oversight that's an appropriate Congressional role. So by both reaffirming the authority and getting Congress to join the executive and doing this together I think it makes it a truly national effort with an appropriate Congressional part. 59:20 Rep. Ted Lieu (D-CA): How would you respond to critics who say this would make it harder for other folks in the future to want to invest in the United States? Philip Zelikow: You can look at the numbers. After we froze Russian assets, everybody understood the political risks that might be involved with putting their money into dollar holdings. The Chinese called in all their bankers and asked them, "Do we have any other options?" That happened last year. You can just simply track what's happened in the international financial markets and see how folks have now priced in that political risk. But the result is still very strong demand and interest in the dollar. But here again, to come back to Congressman [Gregory] Meeks point, by working with the Euro and the yen and Sterling, we give them no place to go. If they want to participate in the world economy, then they're just going to have to invest in assets like that. 1:00:30 Rebeccah Heinrichs: The other thing that's very interesting and good in the REPO bill that is different is this provision, Section 103, that would prohibit the release of blocked Russian sovereign assets. I think that's an incredibly important element of this bill. That would remove the temptation for any kind of sweetener for the Russians to have access to these funds and leave Ukraine in a lurch whenever they have to rebuild their society. That's a very important part of the bill. 1:01:10 Rep. Nathaniel Moran (R-TX): Why would it be better to transfer these assets for Ukraine's direct benefit than to use them for leverage in negotiations and ending this conflict at some point? Rebeccah Heinrichs: It comes back down to the fundamental question at the end: who's going to foot the bill for rebuilding Ukrainian society? Somebody's going to have to do it. It should not be the American people primarily. They're footing a pretty significant bill. I think that benefits American industry and benefits our own military, but this particular piece should be carried out by the perpetrators of this act. So I think that it'd be a mistake to hold that out as a sweetener to get the Russians to come to the end or the conclusion. 1:01:55 Rep. Nathaniel Moran (R-TX): Mr. Zelikow, you mentioned earlier in response to one of my colleague's questions that it looks like that under current law under the IEEPA authorities, the president can do this activity now. Do you know why the President is not doing that? And if he chose to do that, could he do it immediately? Or is there any delay in that? Philip Zelikow: They could act immediately. They've delayed a long time, partly, to be very blunt -- because I've been talking to a lot of people about this -- they had very deep interagency disagreements inside the administration over how to proceed and they found that their bandwidth was totally overwhelmed by other Ukrainian-related concerns, and they didn't give this heavy attention until fairly recently. And now that they have given it sustained attention, I think the President has actually settled, at a fundamental level, those interagency disputes and they are now moving forward to try to find a way to make this work. 1:02:50 Philip Zelikow: I think the point you raised a minute ago about whether we want to hold this back as leverage was one factor in the back of the minds of some people. I think as the war has continued on through this year, hopes of a quick settlement of the war have dissipated. I think they realize that this is going to be a long war. That sobering realization has kind of sunk in. Also, from a legal point of view, if you want to, you could credit the Russians in any peace negotiation. You can basically say this is a credit against your liability for the for rebuilding Ukraine. 1:04:55 Rep. Madeleine Dean (D-PA): As a member of the Foreign Affairs Committee, we have been to many European nations. To a nation, they say the United States is the indispensable partner here, and they say that with all humility and not blowing smoke. We visited the Hague and sat with lead prosecutor Khan, and everyone is talking about waiting us out. Not just waiting out Congress's support, but waiting out the outcome of the next election. They asked us specifically about that. Mr. Putin is clearly waiting for the outcome of the next election in hopes that it will not be the reelection of Joe Biden, who I'm really proud is in Israel right now. Timing. How does this work? You already said it's going to be into 2025. How do we use this leverage, this economic warfare as the center of gravity in this conflict, to bring the timing tighter to a successful conclusion for Ukraine? Philip Zelikow: So that's a great question. And this is why action on this issue is so urgent now, because the operational timeline to stand this up on a massive multi 100 billion dollar scale is if we move on this in the next couple of months and mobilize the money. We could get an enormous operation up and running with a relatively secure source of funding by next year. If we get that up and running by the middle of next year, we then insulate ourselves, to some extent, against the kind of electoral risk to which you gently alluded. 1:07:55 Rep. Thomas Kean Jr. (R-NJ): If the United States did transfer Russian sovereign assets to Ukraine, how could Ukraine best use these in the near term? Philip Zelikow: In the near term, what they would do, I think, is begin undertaking a comprehensive program to shore up their infrastructure, withstand the coming Russian campaigns to further damage that and begin to rebuild the basic transportation infrastructure and other things that can then begin to unlock a really bright future for the rest of the Ukrainian economy. There are things that can be done then to move Ukrainian industry into new sectors. I think the Ukrainian goal is not just to restore what they had five years ago, but actually to use this as a way to build back better, to imagine a brighter future in partnership with Europe. And then if the money is managed well, this gives leverage to encourage the Ukrainian reform process as part of the EU accession. Putin's whole effort here is, "if I can't conquer Ukraine, I will wreck it and make it ungovernable," and we'll show decisively that that objective cannot be achieved. 1:10:35 Rebeccah Heinrichs: If I may, sir, another principle that has been misunderstood throughout this conflict is this notion of escalation. Escalation is not bad. It's only bad if it's the adversary who's escalating to prevail. We want Ukraine to escalate to win, to convince the Russians to end the war. If you do not permit the Ukrainians to escalate, then you only have a long protracted war of attrition that none of us can afford. 1:12:05 Philip Zelikow: Whenever you do a large thing in international affairs, there are going to be unintended consequences from that, and rather than be dismissive about that concern, I'll say if you embark on this, then people will be tempted to try to use these sorts of precedents against us. They'll be limited in their ability to do that because of the fundamental places where money is held in the world economy. A lot of people don't do business with the United States because they love us; they do business with us because they think it's necessary. If they could expropriate our property with no penalty, they would. Venezuela tried that. Most of the world doesn't want to follow Venezuela's example. So yes, there are some potential unintended consequences of people trying to use this precedent. But one reason we've tried to set this under international law is to use the standards of international law to govern this countermeasure. International law allows these countermeasures, but it says you can only do this if the target country's outlaw behavior is extreme, and there's a standard for that. It turns out Russia totally meets that standard. This is the most extreme case of international aggression since the Second World War, bigger than Korea, bigger than Kuwait. But by setting that kind of standard, it makes that slippery slope a little less slippery. 1:14:25 Rep. Greg Stanton (D-AZ): There are some concerns that if we were to transfer these assets, use it for the benefit Ukraine, would there be an impact on the US dollar? Just get your thoughts on that? Philip Zelikow: Yeah, that's why we got in some of the best people we could on international plans, just to do the analysis on that. 93% of the foreign exchange holdings are held in G7 countries and only 3% in renminbi. Running to the renminbi because they're worried about the dollar is something people would do if they wanted to do it already. They've already priced in the political risk of dollar holdings after they've seen what we've done. And you can see their asset allocations. Now, the dollar is involved in 88% of all foreign commercial transactions on one side of the transaction or another. So it's hard to run away from it, especially if the Euro, Yen, and Sterling are in there with you. There's really kind of no place to go if you want to participate in the international economy. Working with Larry Summers, the former Treasury Secretary, Robert Zoellick, with Brad Setser, who studies international finance, we ran some numbers about worst case scenarios and so on, and we think that concern, which sounds good as a soundbite, it turns out on analysis, it fades away. 1:16:10 Philip Zelikow: The US only holds a fraction of the relevant Russian money because the Russians tried to get their money out of our jurisdiction. But when you go to Europe and ask them what's holding them up, they all say "We're waiting for the American lead." So even though we may only hold a fraction of the money, we hold a lot more than a fraction of the relevant clout, and we need to go together, exactly as you imply. September 28, 2023 House Committee on Foreign Affairs Witnesses: Victoria Nuland, Undersecretary of State for Political Affairs, United States Department of State Christopher P. Maier, Assistant Secretary of Defense for Special Operations and Low Intensity Conflict, United States Department of Defense Caroline Krass, General Counsel, United States Department of Defense Richard C. Visek, Acting Legal Adviser, United States Department of State Clips 33:00 Victoria Nuland: First with regard to the Taliban, we've been very clear we're going to judge the Taliban by their actions. It is our assessment that the Taliban have partially adhered to their counterterrorism commitments. We've seen them disrupt ISIS-K, for example. But there's obviously plenty more to to do to ensure that Afghanistan doesn't become a safe haven, or return to safe haven, or persist as a safe haven. That said, I would note that the director of the National Counterterrorism Center Christy Abizaid recently said publicly that al Qaeda is at its historic nadir in Afghanistan, and its revival is unlikely. 34:20 Victoria Nuland: Iran is obviously a state sponsor of terrorism; it is the leading state sponsor of terrorism in the world. Music by Editing Production Assistance
The House Financial Services Committee has been investigating the possibility of the Federal Reserve creating a Central Bank Digital Currency. In this episode, hear experts unpack the nuances and implications of this idea during three hearings, and discover how you can play a part in shaping the future of American currency. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Operation Choke Point Frank Keating. November 7, 2018. The Hill. House Committee on Oversight and Government Reform Staff. May 29, 2014. U.S. House of Representatives. Digital Asset Glass-Steagall James Rickards. August 27, 2012. U.S. News & World Report. Audio Sources September 14, 2023 Committee on Financial Services, Subcommittee on Digital Assets, Financial Technology and Inclusion Witnesses: Yuval Rooz, Co-Founder and Chief Executive Officer, Digital Asset Paige Paridon, Senior Vice President and Senior Associate General Counsel, Bank Policy Institute Christina Parajon Skinner, Assistant Professor, The Wharton School of the University of Pennsylvania Dr. Norbert Michel, Vice President and Director, Center for Monetary and Financial Alternatives, Cato Institute Raúl Carrillo, Academic Fellow, Lecturer in Law, Columbia Law School Clips 27:35 Rep. French Hill (R-AK): Look, the Constitution is clear. Only Congress has the authority to coin money and regulate the value of such money. And we've heard the same from Fed officials, right before this committee, and most recently from Vice Chair for Supervision, Michael Barr, who last week told an audience in Philadelphia and I quote, "The Federal Reserve would only proceed with the issuance of a CBDC with clear support from the executive branch and authorizing legislation from Congress." The Biden Department of Justice agrees, saying, quote, "there would be substantial legal risks to issuing a CBDC without such legislation." 32:05 Rep. Stephen Lynch (D-MA): CBDC is just one type of publicly issued digital dollar and would be issued, backed, and regulated by the Federal Reserve and have the full faith and backing of the US government. This could serve as an alternative to existing forms of payments and have a benefit, including instant payment settlement, provide a medium for cross border transactions, and foster greater financial inclusion. More than 130 countries have begun to explore their own government backed digital currencies. China, Russia, Saudi Arabia and India have already commenced pilot programs, and a digital Euro pilot could be launched as early as 2028. Meanwhile, the US remains far behind amid increasing and blatant information about features of digital currency. While concerns about data privacy and government surveillance are real, especially in countries that do not respect human rights and privacy, a CBDC does not have to be designed that way. We could employ an architecture that would protect personal data while including anti-money laundering and terrorist financing features. 33:15 Rep. Stephen Lynch (D-MA): It is counterintuitive that my colleagues should be raising concerns about data privacy while thousands of private companies, domestic and foreign, are surveilling, aggregating, and selling consumer data each and every day. 33:45 Rep. Stephen Lynch (D-MA): I'm announcing and inviting my colleagues to join the Congressional Digital Dollar Caucus. This forum will educate members on critical issues relating to the development, design, and potential implementation of a government issued digital dollar. I plan to invite innovators, technologists, academics, and other experts to share their findings and development. I hope my colleagues will join me in this exploration. 34:15 Rep. Stephen Lynch (D-MA): The use of anonymous cash has plummeted and more of our transactions are occurring online and under surveillance, tracked and aggregated by financial services companies. Indeed China has turned that fact into a tool of full spectrum surveillance of its citizens. This is why I've introduced the Ecash Act. This bill directs the Treasury to design and pilot a digital version of cash and would complement the Fed-issued CBDC. It would allow individuals to make instant peer to peer payments with no consumer data or transaction tracking and without the use of a bank account. 36:10 Rep. Tom Emmer (R-MN): The need to protect Americans' right to financial product privacy is at an all time high. That's why I introduced the CBDC Anti-Surveillance State Act with over 50 of my colleagues. This bill prevents unelected bureaucrats from creating a tool for financial surveillance if not open, permissionless, and private, like cash, a CBDC is nothing more than a CCP-style surveillance tool that will oppress the American way of life and we're not going to allow that to happen. 38:20 Dr. Norbert Michel: In my testimony, I argue that the United States should not launch a Central Bank Digital Currency, a CBDC. Advocates for a CBDC tout many potential benefits, but there's nothing unique about the technology that would provide those supposed benefits. 39:00 Dr. Norbert Michel: A CBDC in any form would be a direct liability of the central government, a digital tether to its citizens such that it would radically alter the existing public-private relationship that already exists in our monetary arrangement. 39:25 Dr. Norbert Michel: First, issuing a CBDC would not help preserve the status of the United States dollar, it would likely damage it. Proponents argue that because China has launched a CBDC, the United States must keep up by launching its own. Others make the narrower claim that the US must launch a CBDC to keep up with broader technological changes in the payment sector. But anyone who chooses to do so can transact digitally in U.S. dollars right now. The CBDC does not take us from a world with zero or a few digital transactions to one filled with digital transactions. Moreover, the dollar's renowned status is owed to the strength of the American economy and its legal protections for private citizens relative to many other countries. Unlike in many other places, Americans do not have to live in constant fear that the government will take their money. However, if the US creates a CBDC, anyone who wants to use the dollar would lose a layer of protection from that type of government abuse. 40:30 Dr. Norbert Michel: The second myth is that a CBDC would expand financial inclusion by providing a new source of financial services for America's unbanked and underbanked populations. Again, though, this is not a technological problem. In other words, the CBDC itself does not accomplish this goal. The private sector already enables us to transact digitally, and it has been steadily shrinking the number of Americans without financial services for years. We also know, because the FDIC asked them, that unbanked and underbanked Americans primarily are in that situation because either they don't have enough money to have an account, or they don't want to give their personal information to a bank or the government. And what should be obvious is that a lack of sufficient income is a much broader economic problem than a CBDC or financial service technology. While some proponents argue that a CBDC lowers the cost of providing financial services, that's true only if the government subsidizes those costs or chooses to waive the same level of regulatory scrutiny it requires of private firms. And that level of scrutiny, it turns out is more than just a costly mandate that the government has placed on private firms. It's also the one that causes those unbanked Americans to say they don't trust banks. It's also the same one that requires people to hand over their personal information to private companies, and as a result potentially to the government. If the government removes that mandate for all financial service providers, there would be no cost advantage to a CBDC. 42:05 Dr. Norbert Michel: That brings me to my last myth, the idea that a CBDC could somehow enhance financial privacy. Currently, Americans are forced to hand over personal information to financial institutions. Those institutions are required to track transactions, and the government can access that information without a warrant. The fourth amendment is supposed to protect Americans from the government gaining access to this kind of information, unless they show probable cause and obtain a warrant. But it no longer protects Americans when it comes to financial information. And the only buffer left is that the government must go through the financial institution to obtain that information. Introducing a CBDC would remove this last layer of protection. It would place all financial transactions either in a government database or leave them a keystroke away. 44:15 Paige Paridon: We believe that at this point there is little evidence that a CBDC would bring measurable benefits to the US economy or consumers. Furthermore, a CBDC could upend the commercial banking system and create financial instability. 44:30 Paige Paridon: CBDC can take one of two general forms: a wholesale CBDC, which would be used only by financial intermediaries, and a retail CBDC, which could be used by consumers and businesses. To date, most research and attention has been focused on a retail, intermediated, account-based model in which consumer's CBDCs would be held in an account at a bank or another financial intermediary, like an asset held in custody. The CBDC could not be used by the bank to make loans in the way that dollar deposits are used today. Any transfer of $1 deposit from a bank to a CBDC is $1 unavailable for lending to businesses or consumers. By attracting deposits away from banks, a CBDC likely would undermine the commercial banking system in the United States and severely constrict the availability and increase the cost of credit to the economy. 46:30 Paige Paridon: With respect to financial inclusion, a review of the reasons why certain individuals are unbanked makes it clear that a CBDC would be unlikely to meaningfully increase financial inclusion. For example, FDIC data reveals that many respondents are unbanked because of privacy concerns, and intermediated CBDC is unlikely to mitigate those concerns, given that it would presumably come with the same know-your-customer requirements that currently apply to banks. 54:35 Christina Parajon Skinner: So privacy rights are the clearest place to start. Today, individuals can enjoy comprehensive privacy in their payments transactions by using cash. Now, although most central banks have suggested that CBDC is not going to replace cash, that near-term promise can't be guaranteed over the longer term, and the insinuation that CBDC is necessary or inevitable seems motivated by a view that cash will eventually become obsolete. But because central banks don't have the technology presently to offer cash-like privacy, a digital currency -- unless it's radically redesigned -- will bring with it the ability for the state to monitor or surveil its citizens' payments activity. 55:20 Christina Parajon Skinner: I'd like to focus on the impact of a CBDC on the Federal Reserve. Certainly since 2010, the power and authority of the Fed has grown considerably, and Congress's responsibility to oversee the Fed requires it to understand how a CBDC could further empower the central bank but also how it might weaken it. On the one hand, CBDC could result in a larger central bank balance sheet. Issuing CBDC would increase the liability side of the Fed's balance sheet if the total of bank reserves, repos, and cash balances largely remained unchanged. So if the liabilities with CBDC increase, so too much the Fed's assets. The Fed could buy more Treasury securities to match CBDC, but that could possibly invite pressure on the Fed to issue more CBDCs to in turn absorb more government debt. And overall, that dynamic could further erode the limited fiscal discipline that we have remaining. A CBDC could also affect the Fed's independence in the way that it would establish a direct relationship between the central bank and the real economy for the first time in history. One result of that relationship would almost certainly be the further erosion of the line between monetary and fiscal policy. When central banks begin to issue liabilities directly to the people, it will become much more difficult for the central bank to justify their provision of liquidity to banks and the financial system, as opposed to households, especially during a crisis. And effectively this could open the door to political pressure on the Fed to provide liquidity assistance to households during turbulent economic times. But these sorts of household level interventions would radically transform the central bank and its purpose and role within society. 57:40 Christina Parajon Skinner: So it does not inherently improve financial inclusion unless it's paired with accounts for all citizens, which the central bank itself has already recognized as infeasible. 59:15 Raúl Carrillo: Today, I support the call for a digital dollar system, including CBDC, Fed accounts, and Ecash. 1:02:15 Raúl Carrillo: Indeed, the only way to evolve beyond the surveillance status quo is to establish a direct digital dollar interface with consumers where the Fourth Amendment and other protections may actually apply. If we truly care about privacy, we should treat the banking and blockchain industries’ appeals to partnership as suspect, based on legal and technological grounds alone. We can build a retail CBDC and Fed account system with superior protections compared to what exists now and superior protections to the systems that are being built around the world currently. 1:02:50 Raúl Carrillo: So today I also advocate for the inclusion of digital cash, as detailed in the Electronic Cash and Hardware Security and Secured Hardware Act, the Ecash Act, re-introduced by Representative Lynch. Today, Ecash devices available on a smart card or a phone card would serve as digital counterparts to cold hard American cash. These devices would not make payments over the internet. Instead, they would store Treasury issued digital dollars on card hardware to enable everyday small dollar transactions for everyday people. These transactions would be subject to the BSA/AML regime, and as a boon to law enforcement, we can set privacy-sensitive security controls and caps on transactions and usage. However, the cards would in no instance be capable of generating data that companies and agencies can abuse. We preserve a place for privacy within public infrastructure. The Ecash Act harkens back to the past to the days when President Lincoln established the banking and cash system that we still use today. And it also harkens to an exciting, inclusive, safe digital future. 1:08:05 Paige Paridon: CBDC, because it would be a direct liability of the central bank, it would be perceived as the ultimate safe asset. So from that perspective, particularly during times of economic stress, it could attract depositors to pull their money out of the banking system to flee or run to a CBDC if there was perceived concern about the banking system or the financial system overall. So every dollar that currently resides in a bank account can be deployed for useful purposes in the economy, primarily through lending. Every dollar that is pulled out from the banking system and put into a CBDC is one less dollar that could be put to good economic use. And that is why we have a fundamental concern with a retail CBDC, given the flight-to-quality risks. 1:09:35 Rep. Maxine Waters (D-CA): 130 countries, representing 98% of the global economy, are now exploring digital versions of their currencies, including the United States. Almost half of these countries are in advanced development pilot or launch stages of their CBDCs. Can you discuss how CBDCs may shape the future global financial landscape? What would it mean for the United States if we instead chose to stay on the sidelines of this race? Raúl Carrillo: Thank you very much for the question, Representative Waters. My opinion is that it is incumbent upon the United States to provide leadership with respect to an inevitable process that is going to occur across the world. It is clear that we're all moving to digital fiat currency. The question is what sort of protections are going to attend digital fiat currency? 1:12:35 Raúl Carrillo: I hear a lot of concern across the political spectrum in this committee about the power of Silicon Valley. And if you do not create an alternative to the corporate systems that collect data, or promise to protect it and then collect it en mass, which is even worse and common in the blockchain industry, then what is going to happen is that Silicon Valley is going to win. And frankly, I don't think anybody here wants that. But in order to preserve the space that we have for public money and not make it a big tech enterprise, we, in fact, have to move forward with digital fiat currency. 1:13:50 Rep. Warren Davidson (R-OH): One of the key characteristics of sound money is that it facilitates permissionless, peer-to-peer transactions like cash. Currently, of the 100+ countries developing a central bank digital currency, none of them are developing a permissionless system. Every one of them is developing a permission system, including the United States Federal Reserve. So when we talk about permissions, we can kind of get something from the Federal Reserve's own report of that. They said in their report that it should be privacy-protected, intermediated, widely transferable, and identity-verified. Mr. Michel, Professor Skinner, in your view, is it possible to be both privacy-protected and identity-verified? Dr. Norbert Michel: No, in my view, it's not. Once the information is in a system, it's in a system and somebody is going to get it and it's going to get out. And I just quickly really want to say I'm very happy to hear everybody here on the panel is pro-Fourth Amendment. The problem, of course, as you know, is that the Bank Secrecy Act, and the anti money laundering regime runs right over the Fourth Amendment. So that's what needs to be fixed. Rep. Warren Davidson (R-OH): It's already a problem in third party hands, but this wouldn't even be in third party hands. But, you know, Professor Skinner, what's your view? Christina Parajon Skinner: My view is no, that that's not possible right now, and central banks have essentially admitted as much. And to the extent such technology is or could be under development, it's extremely immature. And I think the point to emphasize here is that inherently there will be a tradeoff to the extent central banks create CBDC, between identity verification and privacy. And more than likely central banks will always choose identity verification because they will never feel comfortable sacrificing the national security goals that they see as accompanying robust identity verification. 1:24:35 Rep. John Rose (R-TN): Decisions in United States v. Miller and Maryland v. Smith gave us the third party doctrine. Under that doctrine. if you voluntarily provide information to a third party, the Fourth Amendment does not preclude the government from accessing it without a warrant. Dr. Michelle, can you explain how the third party doctrine has impacted Americans' financial privacy? Dr. Norbert Michel: Yes, they practically have none at the moment partly because of this. But I also want to clarify, because of something that was just said on the panel. The Fourth Amendment is the one that amends the Constitution to the United States, which protects American citizens from the government. So this is exactly the issue and it was brought up in the cases in the 70s, when the Bank Secrecy Act was challenged. If the Bank Secrecy Act were not there, the banks and financial institutions that we have would not be required by the government to collect the data that they are, that is a requirement in the Bank Secrecy Act. And everybody can go back and look at those cases, that was always an issue as to whether this was constitutional and in violation of possibly the Fourth Amendment. So between the combination of the Bank Secrecy Act, the Fourth Amendment issues, and the third party doctrine, Americans, although many of them don't realize it, have very little financial privacy at the moment. 1:26:05 Rep. John Rose (R-TN): How would the adoption of a CBDC further erode Americans' reasonable expectation of financial privacy? Dr. Norbert Michel: I believe it would remove the last layer that we have, quite simply, instead of having to go through the financial institution, the government would have that information either in a central database or a keystroke away. 1:31:05 Raúl Carrillo: We envision hardware devices. So those can be cards, similar in size to an existing debit or credit card, or they can be secured SIM cards, or something like it, on a phone that would enable hardware based transactions and for people to make payments as they do today with paper cash for everyday things without fear of government or corporate surveillance, which occurs in tandem when we use digital payments today. 1:32:20 Raúl Carrillo: I would clarify that the point of Ecash is that it does not operate online. It is actually open, permissionless, and private, in the sense that you don't need a blockchain or a banking intermediary. 1:35:45 Rep. Bryan Steil (R-WI): In your testimony you wrote, "any transfer of $1 deposit from a commercial bank or credit union to a CBDC is $1 unavailable for lending to businesses or consumers." Can you expand a little bit on that statement about how an adoption of an intermediated CBDC would impact credit availability and the cost of banking services? Paige Paridon: Sure. Happy to, thank you. So I think there's a misconception generally, that $1 transferred from a deposit account to a CBDC would mean that CBDC would still be able to be used for lending and investment in the economy the way that dollar deposits currently are now. And that is not the case of CBDC, even if intermediated. In other words, even if the services including onboarding and other services that commercial banks currently provide, even if those services were provided by banks with respect to a consumer's CBDC, the fact is the bank would really only hold that CBDC in the same manner it holds an asset in custody. So it would have to essentially keep that CBDC under the proverbial mattress and it would not be able to be redeployed in the form of loans. 1:41:20 Paige Paridon: If it was an intermediated CBDC, banks would essentially hold CBDC as a custodian. That's right, they wouldn't be able to lend out some portion of the CBDC as they do deposits. 1:42:10 Rep. Sean Casten (D-IL): If you had 100%, CBDCs was all the money supply, you'd have no lending, right? So doesn't any proportional increase in the amount of a CBDC in an economy shrink the economy? Paige Paridon: Well, there could be shifts to other forms of ways to fund lending. Banks could borrow in the wholesale markets, they could potentially borrow from the Federal Reserve. So I'm not necessarily sure it's a one-to-one relationship. 1:46:25 Rep. Mike Flood (R-NE): Ms. Skinner, in your testimony, you mentioned how a CBDC could lead to the Federal Reserve's independence being threatened. Can you speak more on that? Christina Parajon Skinner: Yes, certainly. Thank you for the question. So in the first instance, to the extent the Federal Reserve doesn't change the composition of its balance sheet otherwise, issuing a CBDC will increase its liabilities, which means that it has to match that increase in liabilities by purchasing more assets. So the first thing that we would think about when the Fed would purchase more assets would be buying more Treasury securities. That being said, with the potential for the Fed to issue more CBDC, thereby giving it more headroom to buy more Treasury securities, would be likely to put some pressure on the Fed at some point down the line from the Treasury to issue that CBDC to absorb more government debt, which we call monetary finance or monetizing the deficit. Before World War Two, the Fed essentially operated under the thumb of the Treasury so that during wartime and otherwise, the Fed could effectively monetize the deficit. And really today, that's anathema to an independent central bank. There were other things that the Fed could also be pressured to buy to match an increase in CBDC, like corporate bonds. Now our recent experimentation in corporate bonds has put some question around whether this too could politicize a central bank because inevitably if central banks buy corporate bonds, they are picking winners and losers in the economy. Now, the Fed has been pretty neutral in its approach, but there has been a lot of pressure on the central bank to, for example, buy green bonds in order to facilitate a transition to a low carbon economy and certainly other central banks do actively green their corporate bond portfolios. 2:23:05 Dr. Norbert Michel: I believe this is a question of centralization versus decentralization. And if you have a CBDC, you ultimately have one major point of failure. One way of doing this would be to have the Fed have a database. Well, we know the Fed's been hacked. Even if the Fed has multiple databases, it's the Fed being hacked, as opposed to having multiple private companies all across the country. If Capital One, for example, has a hack or a cybersecurity problem, everybody in the country is not immediately at risk, only their customers, and that's a problem for them. 2:25:25 Rep. William Timmons (R-SC): Based on your research, can you explain what, if any, technological advantage a CBDC has over the private sector? Dr. Norbert Michel: None. And this should be this is properly viewed as a government reaction to a private innovation. We can call it Bitcoin or you could just call it distributed ledger technology in general. That's what this is about. This is about the government seeing an innovation that possibly threatens their control over the payment system and it is a movement to come up with something that takes that back and it just so happens that what they're coming up with here is something that goes even further than where we are without the CBDC. 2:26:45 Christina Parajon Skinner: The status of the dollar is undergirded by our commitment to the rule of law, democratic institutions, having a judiciary that enforces property rights, and perhaps most importantly, maintaining the dollar as a stable store of value. So for there, it's important that the Fed maintain its fight against inflation and with the issuance of the CBDC, there will absolutely be a propensity to over-issue, to for example, monetize the deficit and if that were to happen that would undermine the status of the dollar. 2:29:45 Paige Paridon: A so-called flight to quality is something that we fear would be almost inevitable. Were a retail CBDC to be issued by the Federal Reserve, in times particularly of financial stress or instability, a CBDC would be viewed likely as the ultimate safe asset and depositors would likely be incentivized to pull the deposits out of the banking system and put them into CBDCs as a safe asset, which would reduce the availability of deposits available to lend out, and moreover, increase the cost of credit. 2:31:10 Raúl Carrillo: President Lincoln created cash after the Civil War in order to help everybody have day to day transactions throughout our economy. Today we have cutting edge technology in various other sectors in the government, including in the US military where they use stored value cards known as Eagle Cash in order to make offline payments. 2:33:15 Yuval Rooz: If the US government were to decide to issue a retail CBDC, unlike wholesaled CBDC, I think that it is going to be critical for the government to show an evidence that there is no ability for the government to see transactions of citizens. I personally would be against such an act. 2:35:05 Yuval Rooz: If we wanted to have privacy included in the smart contract of the money, it would state that any movement of money would only be visible to the sender of money and the receiver of money for example, and the issuer of money would be blinded. So all that the issuer would see is the overall balance, but would not see any underlying movements of the money, for example. March 8, 2023 House Financial Services Committee Witnesses: Jerome Powell, Chair, Board of Governors of the Federal Reserve System Clips 53:50 Rep. French Hill (R-AK): Turning to a topic that's been a subject here for nearly four years: Central Bank Digital Currencies. Article One of the Constitution, reserves coins and money issuance to the Congress and we've in turn delegated that to the US Treasury, which has since 1912 engaged the Federal Reserve as their fiscal agent. You've testified here many times before that to issue a Central Bank Digital Currency that would be have to be authorized by statute by Congress. Is that still your testimony? Jerome Powell: So that is absolutely the case as it relates to a retail CBDC. There are potential forms of a wholesale CBDC that you would need to look at, it's less clear. But we've always been talking about retail CBDC and that's something we would certainly need Congressional approval for. Rep. French Hill (R-AK): What would be a parameter on something that's not a retail CBDC where you think that could be issued in some form or fashion without Congress's direct statutory authorization? Jerome Powell: It would be, for example, something between banks, so it would look an awful lot like a bank reserve. And you might ask, Well, why would we need it? And that's a really good question, too. But just something that's literally within a wholesale market. Rep. French Hill (R-AK): But that speaks that you might have a blockchain between banks and the Fed using a Central Bank Digital Currency token to settle transactions institutionally inside the US. 1:15:40 Jerome Powell: We did go out for comment in general on a CBDC a year or so ago and I do expect that we'll go out, I can't give you a date, but we'll certainly go out and we engage with the public on an ongoing basis. We're also doing research on policy and also on technology. That's what we're up to. Rep. Stephen Lynch (D-MA): The Boston Fed has a partnership over there with the folks from MIT Media Lab, they're doing a great job, but it says here that the discussions would include technical experimentation. I was just wondering, at what level are you talking about making decisions on architecture for a retail CBDC? Jerome Powell: We're not at the stage of making any real decisions. What we're doing is experimenting, in kind of early stage experimentation. How would this work? Does it work? What's the best technology? What's the most efficient? We're really at an early stage but we're making progress on sort of technological issues. The policy issues are equally important though. You know, we haven't decided that this is something that the financial systems in the country want or need. So that's going to be very important. 1:18:15 Jerome Powell: A CBDC is going to be years in evaluation. 1:18:30 Rep. Stephen Lynch (D-MA): You know, before the greenback, everybody had their own currency. You know, you had rail rail companies, you had coal companies, you had, you know, state banks that were authorized to issue their own currency. But when the greenback came out, all of those various currencies went to zero, because the greenback had the full faith and credit of the United States behind it. I'm worried about a lot of these Stablecoins and other cryptocurrencies. Do they go to zero when we come up with a CBDC that has the full faith and credit of the United States behind it? We've got 1000s of these out there, and you've got people investing millions and millions of dollars, well trillions right now. And I'm just thinking if we had those advantages built into a CBDC? Wouldn't those alternatives go to zero, if they did not have the transparency and the full faith and credit that we enjoy? Jerome Powell: So certainly, unbacked cryptocurrencies that don't have any intrinsic value, but nonetheless, trade for a positive number, I've never understood the valuation of those. Stablecoins, many of them are really drawing on the credibility of the dollar. They're dollar denominated mainly, dollar-based reserves, although we don't know what's in the reserves because there's no regulation. 2:16:05 Jerome Powell: What we say about permissionless blockchains is that they have been vehicles for fraud -- Rep. Warren Davidson (R-OH): 0.24% if you follow your own report on fraud. It's a fraction of what it is with the US dollar. May 26, 2022 House Financial Services Committee Witness: Lael Brainard, Vice Chair of the Board of Governors of the Federal Reserve System Clips 2:08:30 Rep. John Rose (R-TN): Vice Chair Brainard, we saw how dangerous it can be when the government weaponizes the financial system for political purposes under the Obama administration's Operation Choke Point. More recently, the Canadian government instructed banks to freeze accounts linked to the trucker protests over vaccine mandates. Vice Chair Brainard, without appropriate safeguards, would a CBDC make it easier for the federal government to block individuals it disagrees with from accessing the financial system? Lael Brainard: So I really don't see CBDC as raising questions that are different from deposits and bank accounts, for instance. And the paper that was released in January, in particular, talks about an intermediary model, akin to what we see with commercial bank deposits, where the central bank doesn't have any direct interaction with consumers, doesn't see transactions by consumers, but there are intermediaries and, very importantly, including banks that would be responsible for both identity verification and for keeping that transaction data private. So in that sense, I don't see it it's as really any different than the issues that are raised with commercial bank deposits. June 16, 2021 Committee on Financial Services, Subcommittee on National Security, International Development, and Monetary Policy Witnesses: Eric B. Lorber, Senior Director, Foundation for Defense of Democracies Clips 43:33 Eric Lorber: The number of transactions which are elicit that use Bitcoin or blockchain technology is actually fairly low percentage wise it's in I believe, below 1% or somewhere around there. So it's fairly small. Music by Editing Production Assistance
For the first time in U.S. history, the Speaker of the House of Representatives has been fired from the job mid-term. This episode is a play by play of the drama that lead up to this historic event, including the passing of a temporary government funding law which triggered agents of chaos to give Kevin McCarthy the boot. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Government Shutdowns Clinton T. Brass et al. Updated December 10, 2018. Congressional Research Service. Christopher Hickey. September 29, 2023. CNN. Credit Rating Downgrade Elliot Smith. September 27, 2023. CNBC. Elliot Smith. August 2, 2023. CNBC. Funding Process Congressional Research Service. September 11, 2023. Executive Office of the President, Office of Management and Budget. The Continuing Resolution [Jen’s Highlighted Version.] Wikipedia contributors. Retrieved October 8, 2023. Wikipedia, The Free Encyclopedia. The Ousting of Kevin McCarthy S. Dev. October 4, 2023. CBS News. Mini Racker. October 3, 2023. TIME. Audio Sources October 3, 2023 September 30, 2023 C-SPAN Clips Rep. Kevin McCarthy (R-CA): We will put a clean funding stop gap on the floor to keep government open for 45 days for the House and Senate to get their work done. We will also, knowing what had transpired through the summer -- the disasters in Florida, the horrendous fire in Hawaii and also disasters in California and Vermont -- we will put the supplemental portion that the President asked for in disaster thereto keeping the government open while we continue to do our work. September 30, 2023 Clips Rep. Kay Granger (R-TX): Today, the most important priority is keeping government open. Rep. Mike Lawler (R-NY): To shut the government down would be disastrous for the American people, our military, and our economy. The time has come for everyone to put the American people above all interests and continue to do our work as responsible, reasonable, and serious legislators. Rep. Mariannette Miller-Meeks (R-IA): I cannot justify shutting down our entire government over obscure policy decisions. September 30, 2023 Clips Sen. Mitch McConnell (R-KY): The alternative to our action today -- an entirely avoidable government shutdown -- would not just pause our progress on these important priorities, it would actually set them back. September 29, 2023 Clips Rep. Jim McGovern (D-MA): This bill, that was just dropped on us a few hours ago, really is a piece of garbage, and that is putting it nicely. Rep. Tim Burchett (R-TN): We need to make some serious cuts to our bloated government in areas where we don’t need it. We have way too many bureaucrats. Rep. Tim Burchett (R-TN): As I have stated many times with these continuing resolutions, they tell us to pass a continuing resolution so we don’t have to pass another continuing resolution. Well, that line of thinking is like telling a crackhead that I am going to give you more crack to get you off of crack. The truth is we are just addicted to money, and now we are addicted to our great grandchildren’s money. September 28, 2023 Clips Sen. Jerry Moran (R-KS): I oppose a shutdown of government, in part because a shutdown would make the crisis that we face at our border even worse. September 27, 2023 Clips Rep. Lauren Boebert (R-CO): We don’t want continuing resolutions or omnibus bills. We want to go through the funding of the Federal Government bill by bill, sit down, and work with our colleagues on the other side of the aisle. Rep. Matt Gaetz (R-FL): Enough is enough. I am putting my countrymen first. I don’t think we should send another nickel to Ukraine. September 27, 2023 Clips Sen. James Lankford (R-OK): We have got to deal with the issue of government shutdowns. They hurt us more than help us. September 26, 2023 Clips Rep. Chip Roy (R-TX): It will be up to Democrats to make a choice. Will they shut down this open border or will they shut down the government of the United States. House Speaker Kevin McCarthy on CNN September 21, 2023 Clips Rep. Kevin McCarthy (R-CA): This is a whole new concept of individuals that just want to burn the whole place down, but it doesn't work. September 21, 2023 Clips Rep. Jim McGovern (D-MA): Madam Speaker, this majority is a failure. The clowns are running the circus. The day Speaker MCCARTHY handed his gavel over to the clown show, this was the inevitable outcome. Rep. Jim McGovern (D-MA): The Republican majority in this House is a joke. They wasted weeks talking about gas stoves, weeks arguing about book bans, weeks telling kids what soccer team they can play on, and now we are on the eve of a shutdown and they are doing nothing to stop it. Rep. Tom Cole (R-OK): Shutting down the government is bad for the American people. It is an abdication of our responsibility. It is something we should not do September 20, 2023 Clips Rep. Tracey Mann (R-KS): Let’s secure the border. Let’s decrease our country’s dependence on Communist China. Let’s commit to reigning in government spending. September 19, 2023 News 12 Westchester Clips Rep. Michael Lawler (R-NY): This is stupidity, the idea we are going to shut the government down when we don’t control the Senate, we don’t control the White House. Rep. Michael Lawler (R-NY): If the clown show of colleagues that refuse to actually govern does not want to pass a CR, I will do everything we need to do to make sure a CR passes. The bottom line here is this: we’re not shutting the government down. September 19, 2023 Clips Rep. Tom Cole (R-OK): It is simply an inappropriate tool in the toolbox, in my opinion. I have seen both sides use it. My side, sadly, has used it more. I hope we don’t do it this time. September 19, 2023 PBS NewsHour Clips Rep. Ralph Norman (R-SC): A shutdown is not the best thing in the world, but continued path toward bankruptcy is not an option either, for me. September 18, 2023 Clips Rep. Matt Gaetz (R-FL): Mr. Speaker, I’m not voting for a Continuing Resolution. I’m not voting to continue the failure, and the waste, and the corruption, and the election interference. Rep. Matt Gaetz (R-FL): It is only a review of single-subject spending bills that will save this country and allow us to tweeze through these programs and force these agencies to stand up and defend their budget. September 13, 2023 Clips Rep. Ben Cline (R-VA): We should make border security a condition of any continuing resolution when the fiscal year ends on September 30. September 12, 2023 Clips Rep. Matt Gaetz (R-FL): No continuing resolutions; individual spending bills or bust. Rep. Matt Gaetz (R-FL): Individual, single-subject spending bills that would allow us to have specific review, programmatic analysis, and that would allow us to zero out the salaries of the bureaucrats who have broken bad, targeted President Trump, or cut sweetheart deals for Hunter Biden. Rep. George Santos (R-NY): A shutdown would only hurt the very people who are putting their lives at risk for all of us. YouTube Executive Producer Recommended Episodes Music by Editing Production Assistance Cover Art Designed by Clare Kuntz Balcer with images from and
The system for coordinating organ donations and transplants in the United States is broken, according to experts who have testified over the course of many years to Congress. In this episode, hear their testimony about what is wrong with the current system and then we’ll examine the bill that aims to fix the problems. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources August 3, 2022. Senate Finance Committee. Lenny Bernstein and Todd C. Frankel. August 3, 2022. The Washington Post. February 10, 2020. Senate Finance Committee. The Bill Audio Sources July 20, 2023 Senate Committee on Finance, Subcommittee on Health Care Witnesses: LaQuayia Goldring, Patient Molly J. McCarthy, Vice Chair & Region 6 Patient Affairs Committee Representative, Organ Procurement and Transplantation Network (OPTN) Matthew Wadsworth, President and CEO, Life Connection of Ohio Raymond J. Lynch, MD, MS, FACS, Professor of Surgery and Director of Transplantation Quality and Outcomes, Penn State Health Milton S. Hershey Medical Center Donna R. Cryer, JD, Founder and CEO, Global Liver Institute Clips 30:40 Sen. Ron Wyden (D-OR): HRSA, the Health Resources Agency, is on track to begin the contract process this fall and we're just going to be working here to complement their effort. 36:30 Sen. Chuck Grassley (R-IA): In 2005, I started the investigation of the deadly failures of UNOS, the monopoly tasked with managing the US organ donation system. Since then, more than 200,000 patients have needlessly died on the organ waiting list. There's a reason that I call UNOS the fox guarding the hen house. For nearly two decades, UNOS has concealed serious problems [at] the nation's organ procurement organizations, known as OPOs, instead of working to uncover and correct the corruption. This human tragedy is even more horrific because many of these deaths were preventable. They were the result of [a] corrupt, unaccountable monopoly that operates more like a cartel than a public servant. 44:45 LaQuayia Goldring: As a toddler, at the age of three, I was diagnosed with a rare kidney cancer that took the function of my left kidney. And when I was 17, I went back into complete renal failure and I received a first kidney transplant at that time. Unfortunately, in 2015, I went back into kidney failure. And at that time, I wasn't ready for another transplant, but I didn't have a choice but to go back on dialysis. I've been waiting nine agonizing years for a transplant, dependent upon a dialysis machine five days a week, just to be able to live. I was told that I would receive a kidney transplant within three to five years. But yet I am still waiting. I am undergoing monthly surgeries just to be able to get my dialysis access to work so that I can continue to live until I get a transplant. The UNOS waitlist is not like one to 100, where everybody thinks you get a number. I'm never notified on where I stand on the list or when I will get the call. I have to depend on an algorithm to make the decision of what my fate will be. 47:55 LaQuayia Goldring: Just a few weeks ago, a donor family reached out to me to be a directed kidney donor, meaning they chose me specifically for a kidney transplant. But unfortunately, due to the errors in the UNOS technology, I was listed as inactive and this was a clerical error. And all that they told me was this was a clerical error, and they could not figure out why I was inactive. But when it came down to it, I'm actually active on the transplant list. 51:45 Molly McCarthy: The Federal monopoly contractor managing the organ donation system, UNOS, is an unmitigated failure. And its leadership spends more time attacking critics than it does taking steps to fix the system. I've seen this firsthand in my five years as a patient volunteer with the OPTN and three years ago, I stepped into the role of Vice Chair of the Patient Affairs Committee, or PAC. 53:45 Molly McCarthy: Further, I have been called by a board member telling me to stop focusing on system outage and downtime of the UNOS tech system. He told me that having downtime wasn't a big deal at all, "the donors are dead anyway." That comment speaks volumes to me about the lack of empathy and respect UNOS has for donor families. 55:00 Molly McCarthy: Congress needs to break up the UNOS monopoly by passing 1668, ensuring that HHS uses its authority to replace UNOS as its contractor. 1:00:15 Matt Wadsworth: Break up the OPTN contract and allow for competition. 1:00:40 Matt Wadsworth: I commend this committee for introducing legislation to finally break up this monopoly and I stand ready to work with you in any way possible to ensure that this bill passes. It's the only way this industry will be able to save more patients' lives. 1:02:10 Dr. Raymond Lynch: I want to differentiate between organ donation, which is the altruistic decision of the donor patient and their family, and organ procurement, which is the clinical care provided by OPO staff. This is what turns the gift of donation into the usable organs for transplant. Organ procurement is a clinical specialty. It's the last medical care that many patients will ever receive. It's reimbursed by the federal government and it's administered by OPOs that are each the only provider in the territory to which they hold federal contracts. Right now patient care delivered by OPOs is some of the least visible in American healthcare. I can't tell you how many patients were evaluated by OPO workers in the US in 2022. I can't tell you how many patients were examined, or how many families were given information about donation, or how many times an OPO worker even showed up to a hospital to do this clinical duty. This lack of information about what OPO providers actually do for patients is a root cause of the variability in rates of organ procurement around the country. My research has shown that what we call OPO performance is a measurable restriction on the supply of organs that results in the unnecessary deaths of patients with organ failure. For example, if the lowest performing OPOs from around the country had just reached the national median over a recent seven year period, there would have been 4957 more organ donors, yielding an estimated 11,707 additional organs for transplant. Because many OPOs operate in a low quality data environment and without appropriate oversight, almost 5,000 patients did not get adequate organ procurement care, and nearly 12,000 other patients did not receive life saving transplants. 1:03:55 Dr. Raymond Lynch: OPO clinical work is currently not visible, it's not benchmarkable, and it's not able to be adequately evaluated, analyzed, or compared. However, much of the hidden data about how OPOs provide care to patients is known to one entity and that entity is UNOS. 1:05:20 Dr. Raymond Lynch: We need a new network of highly skilled specialist organizations, each attending to areas of expertise in the management of the OPTN contract. 1:21:15 Sen. Marsha Blackburn (R-TN): When we look at OPTN, and look at the Securing Organ Procurement Act, the bill would strip the nonprofit requirement for the manager of the Organ Procurement and Transplantation Network, which would open the door for profiting from organ procurement and donation. And to me, this is something that I think many people really fear, especially people that are on a waitlist. And so what I would like for you to do is to address that and address those concerns. And why or why not you think the Act has it right. Dr. Raymond Lynch: Thank you, Senator. I think it's unfortunate that people would be afraid of that and it needs to be changed. Many of the patients that you referenced are waitlisted at for-profit hospitals. For-profit is a part of American healthcare. And I can tell you that our not-for-profit entity doesn't work. And there are for-profit hospitals and for-profit transplant centers that do work. So patients don't need to be afraid of that. They do need to be afraid of the status quo. 1:28:30 Sen. Ben Cardin (D-MD): Ms. Cryer, do you have any views as to why it's much lower percentage chances for a racial minority to be able to have a transplant? Donna Cryer: Yes. And it really does come down to UNOS not doing its job of overseeing the organ procurement organizations. We know from many studies that black and brown communities donate organs in the same percentage they are the population. So it is not a problem of willingness to donate. It is a problem, as Miss Goldring was starting to discuss, about UNOS not ensuring that OPOs go out into the communities, develop relationships far before that horrible decision is needed to [be] made to donate the organs of a family member. 1:56:45 Sen. Elizabeth Warren (D-MA): And among the many reforms the legislation would support HRSA's proposal to break up the OPTN monopoly contract into multiple smaller contracts, which would allow some competition and allow the best vendors in the business to manage different parts of the transplant network operation. That means hiring IT experts to do the IT. It means hiring logistics experts to do logistics, and so on. 1:57:15 Sen. Elizabeth Warren (D-MA): UNOS does not want to lose control, so they're pushing to have the government limit eligibility only to nonprofit vendors that have worked in the past on organ donation, meaning, for instance, that the IT company that is hired to run OPTNs computers systems would have had to have worked on an organ transplant network in the past and be a nonprofit. So Ms. McCarthy, the requirement UNOS wants would seem to make it so that only one organization could apply for the new contract: UNOS. 1:58:35 Sen. Elizabeth Warren (D-MA): Right now, Congress has an opportunity to root out corruption in this system, but if we don't act before the current contract expires we won't have another shot for years. August 3, 2022 Senate Committee on Finance Witnesses: Brian Shepard, CEO, United Network for Organ Sharing (UNOS) Diane Brockmeier, RN, President and CEO, Mid-America Transplant Barry Friedman, RN, Executive Director, AdventHealth Transplant Institute Calvin Henry, Region 3 Patient Affairs Committee Representative, Organ Procurement and Transplantation Network (OPTN) Jayme Locke, M.D., MPH, Director, Division of Transplantation, Heersink School of Medicine, University of Alabama at Birmingham Clips 36:15 Sen. Ron Wyden (D-OR): A 1984 law created the first computerized system to match sick patients with the organs they need. It was named the Organ Procurement and Transplantation Network. Someone needed to manage that system for the whole country, so the government sought to contract an organization to run it. UNOS was the only bidder for that first contract in 1986. The contract has come up for bid seven other times, UNOS has won all seven. Today, the network UNOS overseas is made up of nearly 400 members, including 252 transplant centers, and 57 regional organizations known as Organ Procurement Organizations, or OPOs. Each OPO is a defined geographic service network. Families sitting in a hospital room thinking about donating a loved one's organs does not have a choice of OPOs. 37:40 Sen. Ron Wyden (D-OR): Between 2010 and 2020, more than 1,100 complaints were filed by patients and families, staff, transplant centers, and others. The nature of these complaints runs the gamut. For example, in a number of cases, OPOs had failed to complete critical mandatory tests for matters like blood types, diseases, and infection. Our investigation found one patient died after being transplanted with lungs that a South Carolina OPO marked with the wrong blood type. Similar blood type errors happened elsewhere and patients developed serious illness. Some had to have organs removed after transplant. Another patient was told he would likely die within three years after an OPO in Ohio supplied him with a heart from a donor who had died of a malignant brain tumor. UNOS did not pursue any disciplinary action. In a case from Florida, another patient contracted cancer from transplanted organs and the OPO sat on the evidence for months. In total, our investigation found that between 2008 and 2015, and 249 transplant recipients developed a disease from transplanted organs. More than a quarter of them died. 38:55 Sen. Ron Wyden (D-OR): Delivering organs has been another source of life threatening errors. We found 53 such complaints between 2010 and 2020, as well as evidence that this was just the tip of the iceberg. In some cases, couriers missed a flight. In others, the organs were abandoned at airports. Some organs were never picked up. Many of these failures resulted in organs being discarded. 39:20 Sen. Ron Wyden (D-OR): It's reasonable to assume that many more errors are going unreported. Why? Because filing official complaints with UNOS appears to accomplish zero productive oversight or reform. Organ transplant professionals repeatedly told the Finance Committee that the complaint process was, and I quote here, "a black hole." Complaints went in, UNOS went quiet. In interviews with the Committee UNOS leaders have dragged their feet, dodged tough questions, and shifted responsibility onto others. investigations and disciplinary measures rarely amount to much more than a slap on the wrist. Only one time -- just once -- has UNOS recommended that an OPO lose their certification. 55:05 Diane Brockmeier: We must update the archaic technology system at UNOS. As OPOs, we are required to work with UNOS technology DonorNet every day. DonorNet is outdated, difficult to us,e and often slow to function when every minute counts. Manual entry subjects it to error and OPO and Transplant Center staff are not empowered with the right information when time is critical. I did serve in leadership roles on the OPO Committee from 2017 to 2022. Committee members and industry leaders voiced repeated requests to improve DonorNet. The consistent response was UNOS IT did not have the bandwidth to address this work. The limitations of the UNOS technology are delaying and denying transplants to patients that are dying on the waitlist. Poor technology impacts the disturbingly high kidney discard rate in the United States, where one in four kidneys never make it to a patient for transplantation. Critical time is lost due to the inefficiency of DonorNet, wasting time on offers that will not be accepted. Of course an available organ should be offered to the patient in this sequence. However, far too much of the matching, particularly on older donors and organs that are difficult to place, are left to the individual OPOs and transplant centers to find each other despite, rather than facilitated by, UNOS technology. Mid-America Transplant intentionally identifies surgeons who accept kidneys that have been repeatedly turned down many times. These are life saving options for those patients. In May of 2022, one of these patients was number 18,193 on the list. Relying on DonorNet alone, that kidney would never had been placed and the chance to save a life would have been wasted. 55:20 Diane Brockmeier: UNOS lacks urgency and accountability around identifying and remediating this preventable loss of organs, and they are not required to publicly report adverse events when patients are harmed, organs are lost, or the quality of patient care is deemed unsafe. UNOS does not require clinical training, licensure, or certification standards for OPO staff delivering critical patient care. In this environment, who's looking out for the patient? Who's being held accountable for poor patient care? No OPO has ever actually been decertified, regardless of its performance or its safety record. 57:55 Diane Brockmeier: When an OPO goes out of sequence to place an organ that would otherwise be thrown away, UNOS requires an explanation; however, when organs are recovered and discarded, you must remain silent. 58:05 Diane Brockmeier: We must remove conflicts to ensure effective governance. From 2018 to 2020, I served as a board member for the OPTN. Serving on the board of the OPTN automatically assigns membership to the UNOS board. My board experience revealed that at times UNOS actions are not aligned with its fundamental vision of a life saving transplant for everyone in need. How can you fairly represent the country's interest and a contractor's interest at the same time? 58:35 Diane Brockmeier: Board members are often kept in the dark about critical matters and are marginalized, particularly if they express views that differ from UNOS leadership. Preparatory small group calls are conducted prior to board meetings to explore voting intentions, and if the board member was not aligned with the opinion of UNOS leadership, follow up calls are initiated. Fellow board members report feeling pressured to vote in accordance with UNOS leadership. 59:10 Diane Brockmeier: To protect patients, I urge Congress and the administration to separate the OPTN functions into different contracts so that patients can be served by best-in-class vendors, to immediately separate the boards of the OPTN and OPTN contractors, and to ensure that patients are safeguarded through open data from both the OPTN and OPOs. 1:00:45 Barry Friedman: Approximately 23% of kidneys procured from deceased donors are not used and discarded, resulting in preventable deaths 1:00:55 Barry Friedman: Organ transportation is a process left to federally designated Organ Procurement Organizations, OPOs. Currently, they develop their own relationships with couriers, rely on airlines, charter flights, ground transportation, and federal agencies to facilitate transportation. In many cases, organs must connect from one flight to another, leaving airline personnel responsible for transfers. While anyone can track their Amazon or FedEx package, there is currently no consistent way of tracking these life saving organs. 1:01:45 Barry Friedman: Currently there is no requirement for OPOs to use tracking systems. 1:02:20 Barry Friedman: I also believe there's a conflict of interest related to the management of IT functions by UNOS, as the IT tools they offer transplant centers come with additional costs, despite these being essential for the safety and management of organs. 1:02:35 Barry Friedman: UNOS is not effectively screening organ donors so that they can be quickly directed to transplant programs. UNOS asks centers to voluntarily opt out of certain organs via a filtering process. As a result, OPOs waste valuable time making organ offers to centers that will never accept them. Time wasted equates to prolonged cold ischemic time and organs not placed, resulting in lost organ transplant opportunities. 1:03:10 Barry Friedman: Due to the limited expertise that UNOS has in the placement of organs, it would be best if they were no longer responsible for the development of organ placement practices. The UNOS policy making [process] lacks transparency. Currently OPTN board members concurrently serve as the board members of UNOS, which creates a conflict of interest that contributes to this lack of transparency. UNOS committees are formed in a vacuum. There is no call for nominations and no data shared with the transplant community to explain the rationale behind decisions that create policy change. 1:11:35 Dr. Jayme Locke: The most powerful thing to know about this is that every organ represents a life. We can never forget that. Imagine having a medication you need to live being thrown away simply because someone took too long to get it to you. Your life quite literally in a trash can. Organs are no different. They too have shelf lives and they are measured in hours. Discarded organs and transportation errors may sound abstract, but let me make this negligence real for you. In 2014, I received a kidney that arrived frozen, it was an ice cube you could put in your drink. The intended recipient was sensitized, meaning difficult to match. The only thing we could do was tell the waiting patient that due to the lack of transportation safeguard, the kidney had to be thrown in the trash, the final generous act of a donor in Maryland. In 2017, I received a kidney that arrived in a box that appeared to have tire marks on it. The box was squished and the container inside had been ruptured. We were lucky and were able to salvage the kidney for transplant. But why should luck even play a role? 1:12:45 Dr. Jayme Locke: In one week, I received four kidneys from four different OPOs, each with basic errors that led to the need to throw away those life saving organs. One due to a botched kidney biopsy into the kidneys collecting system, another because of a lower pole artery that had been cut during procurement that could have been fixed if someone involved had assessed the kidney for damage and flushed it before packing, but that didn't happen. Two others arrived to me blue, meaning they hadn't been flushed either. 1:13:15 Dr. Jayme Locke: Opacity at UNOS means that we have no idea how often basic mistakes happen across the country, nor can we have any confidence that anything is being done to redress such errors so they don't keep happening. 1:13:40 Dr. Jayme Locke: Women who have been pregnant, especially multiple times, are harder to match, contributing to both gender and racial disparities in access to transplant. This is a very real example of how a constrained pool of organs and high discards disproportionately hurt women and women of color, who are more likely to have multiple pregnancies. 1:14:25 Dr. Jayme Locke: Number one, immediately separate the OPTN board from any of the boards of any contractors. Number two, bring in real experts to ensure our patients are served by the best of the best in each field, separating out key functions of the OPTN, including policy, technology, and logistics. And number three, ensure that patients are safer by holding all contractors accountable through public adverse event reporting and immediate redressing of problems. 1:22:00 Sen. Chuck Grassley (R-IA): The system doesn't seem to be fair to racial minorities or people living in rural communities. So what are your efforts underway to understand the root causes and help make the system fairer to patients on the waiting list to explain the factors that result in the disparity for minorities in rural populations in the process? And how can the federal government address a problem if we have to be involved in addressing it? Dr. Jayme Locke: One of the most important things that we don't currently do is we don't actually account for disease burden in terms of examining our waiting lists. So we have no way of knowing if we're actually serving the correct people, if the correct people are actually making it to the waiting list. Disease burden is super important because it not only identifies the individuals who are in need of transplantation, but it also speaks to supply. So areas with high rates of end stage kidney disease burden, like the southeastern United States are going to have much lower supply. And those waiting lists predominantly consist of African American or Black individuals. So if you want to make a truly equitable organ system, you have to essentially get more organs to those areas where there are higher disease burdens. I think the other thing is that we have to have more focus on how we approach donor families and make sure that we have cultural competence as a part of our OPOs, and how they approach families to ensure that we're not marginalizing minority families with regard to the organ donation process. 1:30:00 Brian Shepard: The OPTN IT system that UNOS operates has 99.99% uptime. It is a highly reliable system. We are audited annually by HRSA.... Sen. Ben Cardin (D-MD): My information shows it's had 17 days down since I think 1999. That's not correct? Brian Shepard: In 23 years, yes, sir. Sen. Ben Cardin (D-MD): Okay, well, every day there's a loss of life, isn't it? Brian Shepard: That's the total amount of time over the couse of -- Sen. Ben Cardin (D-MD): I hope our national event system isn't down 17 days a year. Brian Shepard: The system has never been down for a day. And to my knowledge, and I have not been at UNOS since 1999, there's been maybe one event that was longer than an hour, and that was three hours. But the total amount of time since 1999 -- Sen. Ben Cardin (D-MD): So you're satisfied with your technology? You think you have the right technology? You're satisfied with your tracking systems now? You think everything is okay? Brian Shepard: We constantly improve our technology. We're subjected to 3 million attempts a day to hack into the patient database and we successfully repelled them all. So we are never satisfied with our technology, but we do maintain 99.99% uptime. We disagree with the USDS analysis of our systems. 1:37:25 Brian Shepard: If you're asking whether UNOS can prevent an OPO from operating or for being an OPO -- Sen. Rob Portman (R-OH: Well not prevent them, but require them to do something .You don't have the ability to require them...? Brian Shepard: The peer review process has significant persuasive authority, but all the payment authority and all the certification and decertification authority live at CMS. 1:39:00 Sen. Rob Portman (R-OH: Do you think there should be tracking of organs in transit? Brian Shepard: I think that's a very beneficial thing. UNOS provides an optional service that a quarter of OPOs use. Many OPOs also use other commercially available trackers to do that. There is not a single requirement to use a particular system. 1:41:55 Sen. Elizabeth Warren (D-MA): Mr. Shepherd, you are the CEO of UNOS. We have documented these problems and you've received more than 1000 complaints in the last decade alone. So tell me, in the 36 years that UNOS has had the contract to run our national organ system, how many times has UNOS declared its OPO Members, any OPO members, not in good standing. Brian Shepard: Two times, Senator. 1:43:20 Sen. Elizabeth Warren (D-MA): How many times has UNOS put an OPO on probation? Brian Shepard: I don't know that number off the top of my head, but it's not a large number. Sen. Elizabeth Warren (D-MA): It's not large, in fact it's three. 1:45:20 Brian Shepard: Approximately 10% of the budget of this contract is taxpayer funded. The rest of that is paid by hospitals when they list patients. 1:49:30 Sen. Todd Young (R-IN): Once an OPO is designated not in good standing, Senator Warren referred to this as toothless. It does seem toothless to me. I'll give you an opportunity, Mr. Shepherd, to disabuse me of that notion and indicate for me what penalties or sanctions are actually placed on an OPO when they are designated not in good standing. Brian Shepard: The statute does not give UNOS any authority to offer sanctions like that. The certification, decertification, payment authorities belong entirely to CMS. UNOS's statute doesn't give us the ability -- Sen. Todd Young (R-IN): So it is toothless in that sense. Brian Shepard: It is designed to be, by regulation and contract, a quality improvement process, in contrast to the oversight process operated by a federal agency. 1:51:15 Sen. Todd Young (R-IN): To what extent is UNOS currently tracking the status of all the organs in transit at any given time? Brian Shepard: UNOS does not coordinate transportation or track organs in transit. We do provide a service that OPOs can use to use GPS trackers. Some of the OPOs use ours and some use other commercially available products. Sen. Todd Young (R-IN): So why is it, and how does UNOS plan to optimize organ delivery if you don't have 100% visibility into where they are at any given time? Brian Shepard: I think that the GPS products that we offer and that other people offer are valuable, they do help in the delivery of kidneys. Only kidneys travel unaccompanied, so this is a kidney issue. But I do think that GPS trackers are valuable and I think that's why you've seen more and more OPOs use them. 1:52:50 Sen. Ron Wyden (D-OR): Mr. Shepherd has said twice, with respect to this whole question of the power to decertify an OPO, that CMS has the power to do it. UNOS also has the power to refer an OPO for decertification under the OPTN final rule. That has been done exactly once. So I just wanted it understood with respect to making sure the committee has got what's really going on with respect to decertifying OPOs. 2:00:15 Dr. Jayme Locke: Obviously people have described that we have about a 25% kidney discard, so one in four. So if you look at numbers last year, these are rough numbers, but that'd be about 8000 kidneys. And really, I think, in some ways, these are kind of a victim of an entrenched and cumbersome allocation algorithms that are very ordinal, you have to go sort of in order, when data clearly have shown that introduction of multiple simultaneous expiring offers would result in more efficient placement of kidneys and this would decrease our cold ischemia time. 2:00:50 Dr. Jayme Locke: So if you take UNOS's organ center, they have a very rigid system, for example, for finding flights and lack either an ability or interest in thinking outside the box. So, for example, if there are no direct flights from California to Birmingham, Alabama, instead of looking for a flight from San Francisco to Atlanta, understanding that a courier could then pick it up in Atlanta and drive it the two hours, they'll instead put on a flight from SFO to Atlanta and allow it to go to cargo hold overnight, where it literally is rotting, if you will, and we're putting extra time on it. Sen. Ron Wyden (D-OR): Just to make sure everybody gets this. You're saying you've seen instances of something being put in cargo hold when it is very likely to rot? Dr. Jayme Locke: That is correct. So if the kidney arrives after 10pm at the Atlanta airport, it goes to cargo hold. We discovered that and made calls to the airlines ourselves and after several calls to the airlines, of course they were mortified, not understanding that that was what was happening and actually had their manager meet our courier and we were able to get the kidney out of cargo hold, but this went on before we figured out what was happening because essentially they fly it in, it sits in cargo hold, it comes out the next morning to catch the next flight. Instead of thinking outside the box: if we just get it to Atlanta, it's drivable to Birmingham. And those hours make a difference. Sen. Ron Wyden (D-OR): That sounds way too logical for what UNOS has been up to. 2:03:05 Sen. Ron Wyden (D-OR): Miss Brockmeier, UNOS has developed this organ tracking system. Do you all use it? I'm curious what you think of it. Diane Brockmeier: Thank you for the question, Senator. We did use and participate in the beta pilot through UNOS and made the decision to not move forward using their product, and have sought a commercial alternative. Sen. Ron Wyden (D-OR): And why was that? Diane Brockmeier: Part of the issues were some service related issues, the lack of the interconnectivity that we wanted to be able to facilitate a more expedited visual tracking of where the organ was. Sen. Ron Wyden (D-OR): Was the tracking technology low quality? Diane Brockmeier: Yes, sir. 2:11:25 Sen. Ron Wyden (D-OR): All right, let's talk for a moment about the boards that are supposed to be overseeing these, because it looks to me like there's a serious conflict of interest here and I'll send this to Ms. Brockmeier, and perhaps you'd like to get to it as well, Mr. Friedman. The Organ Procurement and Transplantation Network, which is the formal title of the organ network that operates under federal contract administered by HHS, and UNOS, which is the contractor that operates the network and controls information about the network, have the same boards of directors, despite efforts by the government to separate them. That means the people who look out for the best interests of UNOS, the multimillion dollar nonprofit, are the same people who look out for the interests of the entire organ transplant network. Sure sounds like a conflict to me. 2:12:55 Diane Brockmeier: I think there should be an independent board. I think the division of the responsibilities of the board and by the inherent way that they're structured, do pose conflicts. It would be like if you had an organization that was a supporting organization, you'd want to hold it accountable for its performance. And the current structure really limits that opportunity. 2:19:50 Dr. Jayme Locke: And if you think about IT, something as simple as having a system where we can more easily put in unacceptable antigens, this was a debate for many years. So for context, we list unacceptable antigens in the system that allows us to better match kidneys so that when someone comes up on the match run, we have a high probability that there'll be a good tissue match. Well, that took forever and we couldn't really get our unacceptable antigens in, so routinely people get offered kidneys that aren't going to be a match, and you have to get through all of those before you can get to the person that they really should go to. Those are simple examples. But if we could really have transparency and accountability around those kinds of things, we could save more lives. 2:23:10 Sen. Ron Wyden (D-OR): Mr. Shepherd told Senator Warren that only 10% of UNOS funds come from taxpayer money and the rest comes from fees paid by transplant centers who add patients to the list. But the fact is, Medicare is the largest payer of the fees, for example, for kidneys. So we're talking about inefficiency, inefficiency that puts patients at risk. And certainly, taxpayer dollars are used to cover some of these practices. May 4, 2021 House Committee on Oversight and Reform, Subcommittee on Economic and Consumer Policy Witnesses: Tonya Ingram, Patient Waiting for a Transplant Dr. Dara Kass, Living Donor and Mother of Transplant Recipient LaQuayia Goldring, Patient Waiting for a Transplant Steve Miller, CEO, Association for Organ Procurement Organizations Joe Ferreira, President, Association for Organ Procurement Organizations Matt Wadsworth, President and CEO, Life Connection of Ohio Dr. Seth Karp, Director, Vanderbilt Transplant Center Donna Cryer, President and CEO, Global Liver Institute Clips 5:15 Tonya Ingram: The Organ Procurement Organization that serves Los Angeles, where I live, is failing according to the federal government. In fact, it's one of the worst in the country. One analysis showed it only recovered 31% of potential organ donors. Audits in previous years found that LA's OPO has misspent taxpayer dollars on retreats to five star hotels and Rose Bowl tickets. The CEO makes more than $900,000. Even still, the LA OPO has not lost its government contract and it has five more years to go. 30:00 Rep. Raja Krishnamoorthi (D-IL): Unusual among Medicare programs, their costs are 100% reimbursed, even costs unrelated to care. So, extravagant executive compensation and luxury perks may be passed off onto the taxpayer. 46:55 Dr. Seth Karp: We have 10 hours to get a liver from the donor to the recipient, and about one hour to sew it in. For heart, we have about six hours. Time matters. 47:55 Dr. Seth Karp: Last year, I had the opportunity to co-write a viewpoint in one of the journals of the American Medical Association with TJ Patel, former Chief Data Scientist of the United States. In that article, we provided evidence that the metrics used to judge the performance of organ procurement organizations are basically useless. Until the recent OPO Final Rule, performance was self-reported, and OPO employees admitted to having gamed the system. When threatened with decertification, one of the OPOs themselves successfully argued that because the performance data were self reported and unaudited, they failed to meet a reasonable standard and the OPO should not be held accountable. In other words for decades, the metrics supposed to measure performance didn't measure performance, and the results have been disastrous, as you have heard. 49:45 Dr. Seth Karp: Whenever I, and quite frankly most everyone else in the field, gives a talk on transplantation, we usually make two points. The first is that organ transplantation is a miracle of modern medicine. The second is the tragedy that there are not enough organs for everyone who needs one. I no longer use the second point, because I don't believe it. Based on my work, I believe that there are enough organs for patients who require hearts, lungs, and probably livers, and we can make a huge improvement in the number of kidneys available. In addition to improving OPO performance, new technologies already exist to dramatically increase the organ supply. We need a structure to drive rapid improvement in our system. 54:00 Joe Ferreira: One common misconception is that OPOs are solely responsible for the entire donation and transplantation system, when, in fact, OPOs are the intermediary entity and their success is highly dependent on collaborations with hospitals and transplant programs. At the start of the donation process, hospitals are responsible for notifying any OPO in a timely manner when a patient is on a ventilator and meets medical criteria to be an organ donor. Additionally, transplant centers must make the decision whether to accept or decline the organs offered by OPOs. 57:55 Matt Wadsworth: As geographic monopolies, OPOs are not subject to any competitive pressure to provide high service. As the only major program in all of health care 100% reimbursed for all costs, we do not face financial pressures to allocate resources intelligently. 1:02:10 Rep. Raja Krishnamoorthi (D-IL): Mr. Ferreira, I'd like to turn to you. You run the OPO called the Nevada Donor Network. I have your OPO's 2019 financial statement filed with the CMS. It appears that your OPO spent roughly $6 million in 2019 on administrative and general expenses. Interestingly, in 2019, I see your OPO spent approximately $146,000 on travel meetings and seminars alone. And your itemization of Administrative and General has an interesting line item for $576,000 for "ANG". It took me a minute but that means you have an "Administrative and General" subcategory in your "Administrative and General" category. Very vague. Now Mr. Ferreira, I was informed by Mr. Wadsworth, a former executive of yours at the Nevada Donor Network, that your OPO has season tickets to the NHL's Las Vegas Golden Knights, isn't that correct? Joe Ferreira: That is correct, Mr. Chairman. Rep. Raja Krishnamoorthi (D-IL): And you also have season tickets to the Las Vegas Raiders too, right? Joe Ferreira: That is correct. Rep. Raja Krishnamoorthi (D-IL): And according to Mr. Wadsworth and others, your OPO took a board retreat to Napa Valley in 2018. Joe Ferreira: That is correct. Rep. Raja Krishnamoorthi (D-IL): And Sonoma in 2019, right? Joe Ferreira: That is correct. Rep. Raja Krishnamoorthi (D-IL): Mr. Ferreira, what you're spending on the Raiders, the Golden Knights, Napa Valley and Sonoma have one thing in common: they have nothing to do with recovering organs. 1:10:30 Dr. Seth Karp: In 2019, there were six heart transplants that were performed using donors after circulatory determination of death. And I don't want to get into the technical aspects of that. But in 2019, that number was six. In 2020, that number was 126. This is a new technology. This is a way that we can increase the number of heart transplants done in United States dramatically. And if we think that there were 500 patients in the United States waiting for a heart in 2020, 500 patients that either died or were delisted because they were too sick, and you think in one year, using a technology, we got another 100 transplants, if we could get another 500 transplants out of that technology, we could almost eliminate deaths on the on the heart transplant waiting list. That technology exists. It exists today. But we don't have a mechanism for getting it out to everybody that could use it and it's going to run itself through the system, it's going to take too much time. 1:24:05 Rep. Andrew Clyde (R-GA): You know, I'm a little disappointed that we're discussing race as a factor in organ transplant. We're all one race in my opinion; color makes no difference to me. We're the human race. And to me, the interjection of race into this discussion is very concerning. Discrimination based on race was outlawed almost 60 years ago through the Civil Rights Act of 1964. Now, I'm not a medical doctor, and I have very little knowledge of medicine. But last year, there was an article that came out in LifeSource and it says, "Does my race and ethnicity matter in organ donation?" And so my question here is for Dr. Karp. In your experience, would you agree that a donor's organs are more likely to be a clinical match for a recipient of the same ethnicity? Could you comment on that? Is that actually a factor, or not? I mean, we're all human beings, we all, you know, have similar bodies. Dr. Seth Karp: Yes. So there definitely are certain HLA types that are more common. That is race-based. So the answer to that question is yes. Rep. Andrew Clyde (R-GA): Okay. All right. And so if you have more of one particular race, more donations of one particular race, then naturally you would have more actual matches of that particular race. Is that correct? Dr. Seth Karp: That would tend to be the case. Rep. Andrew Clyde (R-GA): Okay. All right. All right. Okay, that's just a question that I wanted to clear up here. 1:34:20 Donna Cryer: We'd like to see investments in languages that are spoken by the community. Educational resources should be, as required by law, for those with limited English proficiency. They should be in the languages spoken by the community. They should be hiring diverse staff to have those most crucial conversations with families. The data shows, and certainly experience and common sense shows as well, that having people of color approaching families of color results in more donations. Executive Producer Recommended Sources Music by Editing Production Assistance
Do you hate hidden hotel, housing, airline, ticketing, banking, and other corporate fees? Do you want Congress to do something about them? In this episode, learn about the wide range of unreasonable fees being reported to Congress during hearings and examine what proposals could have bipartisan support. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes FTC Authority Ronald Mann. Apr 23, 2021. SCOTUSblog. Supreme Court of the United States. April 22, 2021. Junk Fee Overview Ashish A. Pradhan. May 19, 2023. The National Law Review. Will Kenton. January 24, 2023. Investopedia. Brian Deese et al. October 26, 2022. White House Briefing Room Blog. October 20, 2022. Federal Trade Commission. Brian Canfield et al. July 7, 2021. Institute for Policy Integrity, NYU School of Law. Internet *Federal Communications Commission Healthcare August 8, 2022. Federal Trade Commission. Banking/Payments Lindsey D. Johnson. July 26, 2023. Consumer Bankers Association. July 11, 2023. Consumer Financial Protection Bureau Newsroom. Offices of Consumer Populations and Markets. May 23, 2023. Consumer Financial Protection Bureau. October 26, 2022. Consumer Financial Protection Bureau Newsroom. September 28, 2022. Consumer Financial Protection Bureau Newsroom. August 16, 2022. Pennsylvania Office of Attorney General. August 16, 2022. U.S. District Court for the Eastern District of Pennsylvania. Joe Valenti. March 30, 2022. * Consumer Financial Protection Bureau Blog. January 26, 2022. Consumer Financial Protection Bureau Newsroom. December 7, 2020. Consumer Financial Protection Bureau Newsroom. December 28, 2018. Pennsylvania Office of Attorney General. Housing July 19, 2023. White House Briefing Room. March 14, 2023. National Consumer Law Center. Jennifer Ludden. January 13, 2023. WBUR. Airlines Reid Bramblett. Frommer’s. Suzanne Rowan Kelleher. Mar 7, 2023. Forbes. U.S. Department of Transportation. U.S. Department of Transportation. December 13, 2022. U.S. Department of Transportation. November 2022. Statista. Rosie Spinks. June 1, 2018. Quartz. May 2011. Jones Day. Hotels November 17, 2021. Pennsylvania Office of Attorney General. Christina Jelski. Mar 12, 2021. Travel Weekly. November 28, 2012. The Federal Trade Commission. Ticketing June 20, 2018. U.S. House of Representatives. Anne Bucher. June 13, 2018. Top Class Actions. “Susan Wang and Rene' Lee v. StubHub, Inc. Case” [No. CGC-18-564120]. The Superior Court of the State of California, County of San Francisco. Cars June 23, 2022. Federal Trade Commission. Laws Bills Audio Sources July 26, 2023 Senate Committee on Banking, Housing, and Urban Affairs, Subcommittee on Financial Institutions and Consumer Protection Witnesses: Attorney General, Commonwealth of Pennsylvania Director of Housing Advocacy, Atlanta Legal Aid Society Manager Director, Patomak Global Partners Clips Michelle Henry: In the consumer finance space, we recently filed a multi-state lawsuit against Mariner Finance, a Wall Street private equity-owned installment lender. Our lawsuit alleges that Mariner charged consumers junk fees for hidden add-on products that consumers either did not know about or did not agree to buy. These hidden add-on products, such as credit insurance and auto clubs, are typically low- or no-value products. Consumers left Mariner believing that they had entered into an agreement to borrow and repay over time a certain amount of money. In reality, because of these hidden junk fees, Mariner added hundreds to thousands of dollars to the total amount a consumer owed. The cost of the junk fees is staggering. For a random sample of loans originated in Pennsylvania in December of 2020, Mariner charged each consumer an average of $1,085 in junk fees for an average of $3,394 in cash borrowed. Michelle Henry: We also had a significant junk fee settlement in 2018 with Wells Fargo. This settlement stemmed from Wells charging its auto finance customers millions in junk fees. Despite evidence that many customers already had the required car insurance, Wells improperly charged more than 2 million accounts for force-placed insurance. To resolve the multi-state action, Wells agreed to pay states $575 million. Michelle Henry: In 2021, we announced the landmark junk fee settlement with Marriott International. For many years, travelers had been misled by the published rates offered by hotels for a night stay, only later to be hit with the mandatory resort fees when they were checking in. Thanks to our settlement, Marriott now has a policy in place to be upfront and transparent in the disclosure of mandatory fees, including resort fees, as part of the total price of a hotel stay, allowing consumers to compare total costs for hotels and find the one that is the best fit for them. Marriott was the first hotel chain to formally commit to the upfront disclosure of resort fees as part of the initial advertised price. We hope others will follow. Michelle Henry: In the end, what we are fighting here for is basic fairness and transparency. When consumers are shopping online or in person, they deserve to understand what a loan, a house, or a vacation will cost and exactly what key terms they're agreeing to. At the same time, all businesses deserve to compete on an even playing field, where the price is the price with no hidden surprise fees. Lindsey Siegel: My name is Lindsay Siegel and I'm the Director of Housing Advocacy at Atlanta Legal Aid, which provides free civil legal services to families with low incomes in the metro Atlanta area. Today, I will focus on the rental housing market and how predatory and hidden rental fees gouge families living in poverty and make their rent even more unaffordable than it already is. Miss Dixon is a single mother who found an online listing for an apartment in the fall of 2020. The advertisement said it rented for $1,400 per month. It did not list any other monthly fees she would be required to pay. She applied and paid $525 through the landlord's online portal, which covered her $50 application fee, a $175 moving fee, and a $300 screening fee, all of which were non-refundable. She was not able to see the lease or the apartment she'd be renting, but she knew if she did not pay sight unseen she would lose the apartment. And when her application was approved a few weeks later, the landlord charged her another $200 approval fee. She finally received and signed a copy of her lease just two days before she was slated to move in. It was 50 pages long and contained to eight different addenda. She had expected to pay her rent and for water. She didn't expect to be responsible for a package locker fee, a trash removal fee, a separate valet trash fee, a pest control fee, a technology package fee, an insurance fee, and a credit reporting fee. When the fees added up, $83 had been tacked on to her monthly rent. And to make matters worse, Miss Dixon's landlord did not accept the rent by cash, check, or money order. When she paid through the landlord's online portal she was charged another $72-per-payment convenience fee. The low income renters Atlanta Legal Aid represents have an extreme power imbalance with their landlords. The high demand for rental housing, especially at the more affordable end of the market, makes some landlords believe they can easily get away with unfair and deceptive lease terms and rental practices. The bait and switch Miss Dixon experienced where the landlord advertise the rent as one price only to raise it much higher with junk fees after she had spent hundreds of dollars up front is a far too common practice of many investor landlords in the Atlanta area. Low income renters like Miss Dixon become trapped. She couldn't afford to walk away from a predatory lease two days before she was supposed to move in, even if she realized it would be unaffordable. Of particular concern are the use of high application fees. They often far exceed the cost of running a report, and most renters have to pay them several times before finding a home to rent. We've heard reports that some institutional landlords even collect application fees after they've found a renter for an available home. Brian Johnson: The focus of the President's initiative has been on applying political pressure to companies to induce them to change their fee disclosure practices. In the process, the White House and supporting agencies have dismissed broad categories of fees as junk without ever providing any consistent definition of the term, which has created uncertainty as to which fees can be assessed by institutions without undue reputational or regulatory risk. Brian Johnson: The CFPB has been the most enthusiastic among regulators in heeding the President's call, indiscriminately attacking a growing list of common financial service fees, no matter that they are lawful and fully disclosed. Brian Johnson: The agency has publicly hectored companies about deposit account fees and used the implied threat of investigation to induce such companies to abandon these legal fees. Further, in addressing other fees, the CFPB appears appears to have violated its own regulations and laws governing how agencies proffer rules by disguising interpretive rules as policy statements in bulletins and issuing circulars that function as legislative rules. In another instance, under the guise of interpretation, the CFPB read a word into a statute to achieve its desired policy outcome. In still another, the agency treats the rulemaking process as a foregone conclusion, acting as though a still proposed rule has already taken effect, signaling that the agency has no interest in considering public comments, establishing an adequate evidentiary basis to support its conclusions, or considering potential changes to improve the rule. These examples demonstrate an abuse of power and the agency's disregard for process and the limits placed on it. Moreover, the CFPB's behavior subverts the authority of Congress to oversee the agency and legislate the legality of fees in our financial marketplace. Simply put, it's not playing by the rules. Lindsey Siegel: So I think the federal government does have a role to play. The CFPB could create best practices, investigate junk fees further -- especially those being charged for tenant screening reports -- could bring enforcement actions against debt collectors that engage in collection practices that violate the Fair Debt Collection Practices Act in their collection of rental debt especially includes collection of junk fees. And certainly, you know, HUD could further study and address the disproportionate impact of these practices on renters and rental applicants of color. Lindsey Siegel: Tenants living in Atlanta have a very hard time finding a rental, finding a home, that's not owned by a corporate landlord at this point. They have bought up many properties in the Atlanta area and they always seem to be working in lockstep so that once one institutional landlord is charging a certain kind of fee then another one tends to charge it as well. Just one example of this is the proliferation of landlords charging for insurance fees, and often tenants will think that these are renters insurance because they're often called renter's insurance. But it's not like traditional renter's insurance that protects the renter and their property if it's destroyed. What it does is protect the landlord and doesn't really provide a benefit to tenants at all. And we've seen that proliferate with investor landlords in particular. Sen. Thom Tillis (R-NC): I can't imagine any reasonable member of Congress not saying, "I want the person to know what their financial obligation is when they sign an instrument, not after they read page 10 in the fine print." Sen. Thom Tillis (R-NC): I'm less caught up in whether or not a trash collection fee is appropriate or not, and more caught up in, does that renter know at the point in time they're signing a lease what they're expected to pay every month? Michelle Henry: We often see things bleed over state lines and boundaries, as you are well aware, and so it's important that we work together to enforce these matters. Sen. Raphael Warnock (D-GA): How often do these kinds of cases cross state lines? And would having federal standards against these types of hidden fees make these cases easier to bring? Michelle Henry: Almost always. And I think that's critical. Where we have been most successful is joining with our fellow states, other attorneys general, partnering with them, and including the CFPB. In December of 2020, the CFPB, with all 50 states and the District of Columbia, filed enforcement action against Nationstar mortgage, again for deceptive practices, for not being transparent when they were servicing borrowers mortgages, and as a result of that joint effort we were able to obtain a settlement of $73 million and brought aid to 40,000 borrowers. Michelle Henry: You know, the reality is a lot of times consumers get misled. So they start, they're looking on the internet, they're trying to do due diligence and look for the best price, whether it's for a hotel, a vacation, and they're in there examining it, and they get led to a certain area of a certain website thinking that's the best price. And they go down this rabbit hole where they have no idea at the end of it that the price they thought they were going to pay for a hotel stay with their family is actually far larger because of fees that they weren't prepared, were not properly advised of, and at that point, they're so far in or they never discover it. So no, I don't think they understand exactly what to be aware of. We're trying to do our best to educate but far more work needs to be done, and I applaud this committee for working on it. Sen. Raphael Warnock (D-GA): If more federal agencies had the authority to address these hidden fees, how would that affect your office's capacity? Michelle Henry: It would help tremendously. Sen. Raphael Warnock (D-GA): Thank you so very much. Michelle Henry: If history is any lesson, we know that they can't be trusted to act in the best interest of consumers on their own. Look, they're in the business of making money for their shareholders and we need robust consumer protection rules and enforcement to ensure that. Sen. Thom Tillis (R-NC): So what we're talking about here is not the "what," it's the "how." And I for one do not think that the regulator's who have demonstrated pushing the boundaries of their authority, giving them more authority is a good idea if we're coming up with a real bipartisan sustainable solution. Sen. Thom Tillis (R-NC): The problem we have here too, when we transfer power out of Congress to another branch, yes, that changes every four years or so. So you may be thrilled with a regulatory regimen that comes out from the CFBP today, but because of the way they behaved, it'd be one of the first things I would work to repeal if the administration changed and withdraw it. Sen. Thom Tillis (R-NC): I'd like to submit for the record a letter from the Consumer Bankers Association on the subject. Sen. Thom Tillis (R-NC): Mr. Johnson, can you talk about the effect of the method that the CFPB is using to go after this and the impact that it can have, the negative implications that has? Is the CFPB's tendency to name and shame business institutions to avoid certain practices or adopt new ones effective regulation? They're not really thinking through the full impact and all the potential unintended consequences. Can you think of any example under this current leadership of the CFPB where they have taken that into consideration? Can you speak a little bit about the efforts and the length the CFPB goes in an effort to avoid judicial review and skirt the APA process? June 8, 2023 Senate Committee on Commerce, Science, and Transportation: Subcommittee on Consumer Protection, Product Safety, and Data Security Witnesses: Chief Executive Officer, National Consumers League Bruce Greenwald Professor of Business, Marketing Division, Columbia Business School George Mason University Foundation Professor of Law, Antonin Scalia School of Law, George Mason University Clips 21:35 Sen. John Hickenlooper (D-CO): Simply put, these are fees that are disclosed to a consumer midway through or at the end of a transaction, or they're fees that serve no tangible purpose for a consumer, like a processing fee, and that they are mandatory or unavoidable. 28:00 Sen. Marsha Blackburn (R-TN): The way I look at this issue, and the way many Tennesseans look at it, is this is another way for the FTC, the CFPB, DoT, and all these regulators to clamp down on businesses and try to micro manage businesses. 30:42 Dr. Vicki Morwitz: as a strategy where firms decide to divide a product's price into two or more mandatory parts, a base price for the main product and one or more mandatory surcharges, rather than charging a single all-inclusive price. For example, many hotels have a mandatory fee on top of the daily room rate. These are sometimes called resort fees, or facility fees, or destination fees and can range from $20 to over $50 a night. And many rental car agencies assess several mandatory fees on top of the daily rental rate, such as concession recovery fees, customer facility fees, energy recovery fees, and vehicle licensing fees. 31:20 Dr. Vicki Morwitz: In general, what research on partition pricing has shown is that when firms separate out mandatory surcharges consumers tend to underestimate the total price they'll have to pay and they're often more likely to complete the purchase. 31:50 Dr. Vicki Morwitz: With drip pricing, firms advertise only part of our products' price upfront and reveal other charges later, as shoppers go through the buying process. Drip fees can be mandatory or can be for optional items, but for today's testimony I'll focus on the dripping of mandatory surcharges. Drip pricing is commonly used in industries like the cable TV and the ticketing industries. When a consumer shops for a TV-Internet bundle from a cable television provider, they may first see an attractive base price offer for the bundle, but later learn there are also broadcast TV fees, set top box fees, regional sports fees, and TV connection fees that raise the price considerably. And a consumer shopping for a ticket for a live event, like a concert, a play, or a baseball game, typically first sees the price for different seats in the venue. After selecting a seat, as the consumer clicks through more webpages, they may come to learn there's also a mandatory booking fee, ticketing fee, venue fee, and delivery fee, even when the tickets are delivered electronically. Eventually, they see a total price that may be much higher than the first price they saw and they may be under time pressure to complete the purchase, as there might be a countdown clock that indicates they have to complete their purchase in just a few minutes. Or they may be told there's only two seats left at that price. 33:00 Dr. Vicki Morwitz: What research has shown is that when surcharges are dripped, consumers end up being more likely to buy a product that appears cheaper upfront based only on the base price, but that's more expensive and total given the drip fees. Consumers also tend to buy more expensive products than they otherwise would, such as a seat closer to the stage for a live event. 35:00 Dr. Vicki Morwitz: These policies will benefit consumers if they require that upfront stated prices must be all-inclusive. In other words, all mandatory fees must be included in the total price and that the total price should be seen upfront. This is what academic research suggests will be most beneficial to consumers. 39:20 Dr. Todd Zywicki: Everybody knows bags fly free on Southwest, everybody knows bags don't fly free on the legacy airlines, everybody knows there's going to be a fee for for bags on the other airlines and the like. Maybe there's ways you can disclose it, but nobody's fooled at this point. 42:45 Sally Greenberg: If consumers hate junk fees so much, why do companies large and small increasingly impose them? The answer is, unsurprisingly, because they are a substantial profit center. 43:20 Sally Greenberg: Late payment fees charged by banks and credit cards cost American families an estimated $12 billion annually. These fees, which can be as much as $41 for each Late Fee Payment, far exceed the cost to the issuer for processing and do little to deter future delinquent payments. 43:40 Sally Greenberg: Airlines are also poster children for junk fees. Globally, revenue from junk fees, ancillary fees in airline speak, brought in $102.8 billion in 2022. To put this in perspective, junk fees last year made up 15% of global airline revenues, compared to 6% only 10 years ago. 44:00 Sally Greenberg: Anyone who buys tickets to a concert or sporting event is well acquainted with the myriad fees. They're added at the end of the ticket buying process. We have the example that you showed, Senator Hickenlooper. Primary and secondary market ticketing companies charge service fees, order processing fees, delivery fees and other charges that increased ticket prices on average 27% for the primary market and 31% for the secondary market. 45:05 Sally Greenberg: Junk fees themselves are anti-competitive. They make comparing prices more difficult, distorting well functioning marketplaces. Honest entrepreneurs who invest in their businesses, innovate, and strive to create better value for their customers lose business. Action to address the consumer and competitive harm created by junk fees is urgently needed. 45:30 Sally Greenberg: First, we would urge you to support S. 916. It's the Junk Fee Prevention Act, which would require some of the worst abusers of junk fees to display the full price of services upfront, and they would bar excessive fees and ensure transparency. Second, we ask that Congress restore the FTC's ability to obtain strong financial penalties from wrongdoers. The Supreme Court, in 2021, overturned AMG Capital Management v. FTC, wiping out a critical enforcement tool for the commission. S. 4145, which is the Consumer Protection Remedies Act, would restore that ability to impose monetary relief to the commission. And finally, Congress must not allow businesses that trap consumers with unfair and deceptive fees to escape accountability through fine print in their contracts. To that end, we're proud to support S. 1376, the Forced Arbitration Injustice Repeal Act, which would prohibit pre-dispute arbitration agreements from being enforceable if they require arbitration in employment, consumer, antitrust, or civil rights disputes 44:35 Sally Greenberg: Renters, for example, tend to have lower incomes than those who own their homes. These consumers are also some of the most preyed upon by abusive junk fees. A 2022 survey conducted by Consumer and Housing Advocates found that 89% of landlords imposed some rental application fees[[ clare, 8/7/2023 2:09 PM couldn’t find this specific survey]], nearly as many renters paid excessive late fees and they also get hit with utility, administrative, convenience, insurance, and notice fees. 51:30 Sen. Marsha Blackburn (R-TN): I'm not hearing from Tennesseans about junk fees. They're just not talking about. They are talking about real economic harm. And I think for some it's been kind of perplexing that we would focus on this issue. I even had one Tennessean say, "Well, what exactly is a junk fee? And what are the economic harms that come to people for fees for discretionary services?" 53:20 Dr. Todd Zywicki: I can't see any reason why people who pay their credit cards on time should have to subsidize people who pay their credit cards late. The evidence is clear on this from the that if you reduce late fees, more people pay late. The makes clear that if you reduce late fees, everybody ends up paying higher interest rates and, and lower income and higher risk borrowers get less access to credit. So most of what we see in the market is efficient. It prevents cross consumer subsidies and a lot of these things that are labeled as junk fees are actually just efficient multi-part pricing. 1:00:30 Dr. Vicki Morwitz: When a larger firm, or really any firm, uses hidden fees or surcharges, it doesn't only hurt consumers, but it hurts well intentioned, honest competitors like many of our country's small businesses that you're talking about. So when a larger firm makes salient a lower base price and only puts in small print or only reveals at the end of the shopping process that there are additional mandatory fees, their product offerings may appear, at least at first, to be cheaper than those of say a small business, an honest competitor who uses all inclusive prices, whose prices at least at first then, will appear more expensive, even if they're actually cheaper in total when the hidden fees of the large firm are added in. Now, research shows this is going to lead consumers to be more likely to even first consider the products and services of the larger firm who uses hidden surcharges because their products seem cheaper. In other words, their supposed low prices draw consumers in. But then having first consider their products consumers will also be more likely to stick with that firm and ultimately purchase their products, even when they're more expensive in total with the fees. So these hidden fees, they don't only hurt consumers by leading them to make purchases that are against their own self interest, but it also hurts honest competitors who are using transparent pricing practices. 1:04:10 Sen. Amy Klobuchar (D-MN): One area of this high excessive fees is ticketing. We had the hearing earlier this year with the president of Live Nation/ Ticketmaster, and other witnesses and as you are aware, the facts are quite startling. It's being reviewed by the Justice Department, including 90% monopoly on ticketing for major NFL, NHL events, 80% for major arena events, and 70% monopoly when it comes to all ticketing. In addition to that, Ticketmaster now owns a number of venues and also locks in a number of other venues that they don't own with their services for in excess of seven years, which is a subject of a bill that Senator Blumenthal and I have introduced, because this locking in makes for even less competition. And then finally, Live Nation promotes the act. So it's like a three cornered monopoly. 1:12:30 Sally Greenberg: Yes, you may know that you have a baggage fee, but there are many people who are older, who have disabilities, who may have children with them; they cannot be carrying their bags onto the airplane. So they are forced to eat the cost of a $35 fee, something that used to be free before, and has jammed our airplanes full of luggage up top, creating hazards for flight attendants as well. 1:13:55 Sally Greenberg: We certainly support the Good Jobs for Airports Act. I think many consumers had no idea that a lot of these workers were not making minimum wage[[ clare, 8/7/2023 2:08 PM couldn’t find a source for this.]], were relying on tips. And many people who use the wheelchairs and the curbside baggage services did not know that people were living on tip wages and many people don't tip, as some of us who've been tipped workers know. Tipping is very up and down and certainly not a reliable source of income. So yes, we very much appreciate that legislation and it's long overdue. 1:21:20 Dr. Todd Zywicki: Junk fees is a meaningless term, but it's worse than meaningless. It's actually pernicious, which is that by sort of using this blanket conclusory label, it obscures the complexity of this, the difference between trip pricing, risk based pricing, multipart pricing, partition pricing, and that sort of thing, and it kind of sweeps into one bucket things that are legitimate, things that are aren't, things that might be partially legitimate. And now it's even got more confusing because if you look at the FTC rule, for example, on auto dealers, they take things like nitrogen filled tires, they charge more money for a claim that's a junk fee. The problem with that is not that it's a separate price for nitrogen filled tires. The problem, if there's a problem, is that nitrogen filled tires are garbage, right? There's nothing there. It doesn't matter whether it's disclosed separately or bundled in the price if it's a worthless product. And so when we talk about junk fees, we can end up confusing ourselves, lumping in things because we want to just apply this label to it, whereas I think it'd be much better to understand risk based pricing. What are things where they're pricing for something that you get no value from? What are the things where they're pricing things simply to extract wealth from consumers and the like? Executive Producer Recommended Sources Music by Editing Production Assistance
On June 21st, the House of Representatives censured Rep. Adam Schiff of California. The House has censured members just 24 times in our nation’s history, making Schiff the 25th. In this episode, we'll detail the actions outlined in the censure and let you decide for yourself: Is it a serious abuse of power? Is it a waste of time? Is it a deserved punishment? Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The History of Censure U.S. House of Representatives Office of History, Art and Archives. July 22, 2023. Wikipedia. The Durham Report John Durham. May 12, 2023. U.S. Department of Justice. FISA Warrants Rebecca Beitsch. July 21, 2023. The Hill. Andrew Prokop. February 24, 2018. Vox. February 5, 2018. U.S. House of Representatives The Whistleblower Julian E. Barnes et al. October 2, 2019. The New York Times. Julian E. Barnes and Nicholas Fandos. September 17, 2019. The New York Times. Kyle Cheney. September 13, 2019. Politico. Republicans Who Blocked the First Censure Jared Gans. June 16, 2023. The Hill. Senate Campaign Fundraising Jamie Dupree. July 17, 2023. Regular Order. Impeachment Mania Don Wolfensberger. July 10, 2023. The Hill. Alex Gangitano and Brett Samuels. July 1, 2023. The Hill. Rebecca Beitsch and Emily Brooks. June 29, 2023. The Hill. The Resolution Audio Sources June 21, 2023 House Floor June 21, 2023 House Floor Clips 1:15 Rep. Anna Paulina Luna (R-FL): With access to sensitive information unavailable to most Members of Congress, and certainly not accessible to the American people, Representative SCHIFF abused his privileges, claiming to know the truth, while leaving Americans in the dark about this web of lies. These were lies so severe that they altered the course of the country forever: the lie that President Donald Trump colluded with Russia to steal the 2016 Presidential election revealed to be completely false by numerous investigations, including the Durham report; the lie that the Steele dossier—a folder of falsified and since completely debunked collusion accusations funded by the Democratic Party—had any shred of credibility, yet Representative SCHIFF read it into the CONGRESSIONAL RECORD as fact; the lies concocted and compiled in a false memo that was used to lie to the FISA court, to precipitate domestic spying on U.S. citizen, Carter Page, violating American civil liberties. 12:20 Rep. Adam Schiff (D-CA): Mr. Speaker, to my Republican colleagues who introduced this resolution, I thank you. You honor me with your enmity. You flatter me with this falsehood. You, who are the authors of a big lie about the last election, must condemn the truthtellers, and I stand proudly before you. Your words tell me that I have been effective in the defense of our democracy, and I am grateful. 13:15 Rep. Adam Schiff (D-CA): Donald Trump is under indictment for actions that jeopardize our national security, and MCCARTHY would spend the Nation’s time on petty political payback, thinking he can censure or fine Trump’s opposition into submission. But I will not yield, not one inch. The cost of the Speaker’s delinquency is high, but the cost to Congress of this frivolous and yet dangerous resolution may be even higher, as it represents another serious abuse of power. 14:50 Rep. Adam Schiff (D-CA): This resolution attacks me for initiating an investigation into the Trump campaign’s solicitation and acceptance of Russian help in the 2016 election, even though the investigation was first led not by me but by a Republican chairman. 15:10 Rep. Adam Schiff (D-CA): It would hold that when you give internal campaign polling data to a Russian intelligence operative while Russian intelligence is helping your campaign, as Trump’s campaign chairman did, that you must not call that collusion, though that is its proper name, as the country well knows. 15:30 Rep. Adam Schiff (D-CA): It would fine me for the costs of the critically important Mueller investigation into Trump’s misconduct, even though the special counsel was appointed by Trump’s own Attorney General. 16:00 Rep. Adam Schiff (D-CA): It would reprimand me over a flawed FISA application, as if I were its author or I were the Director of the FBI, and over flaws only discovered years later and by the inspector general, not Mr. Durham. In short, it would accuse me of omnipotence, the leader of some vast deep state conspiracy. Of course, it is nonsense. 16:50 Rep. Adam Schiff (D-CA): My colleagues, if there is cause for censure in this House, and there is, it should be directed at those in this body who sought to overturn a free and fair Election. 19:05 Rep. Mary Miller (R-IL): Representative SCHIFF used his position as the chairman of the House Intelligence Committee to mislead the American people by falsely claiming that there was classified evidence of Russia colluding with President Trump, which was not true. 22:15 Rep. Nick Langworthy (R-NY): SCHIFF repeatedly used the authority he was afforded in his position as chairman to lie to the American people to support his political agenda. Even after the Durham report discredited the Russia hoax, he continued to knowingly lie and peddle this false narrative. 24:45 Rep. Hakeem Jeffries (D-NY): ADAM SCHIFF has done nothing wrong. ADAM SCHIFF is a good man. ADAM SCHIFF has served this country with distinction. ADAM SCHIFF served this country well as a Federal prosecutor, fighting to keep communities safe. ADAM SCHIFF served this country well as the chair of the House Intelligence Committee, investigating people without fear or favor, including those at 1600 Pennsylvania Avenue because he believes in the Constitution and his oath of office. ADAM SCHIFF served his country well as the lead impeachment manager during the first impeachment trial of the former President of the United States, prosecuting his corrupt abuse of power. Yes, ADAM SCHIFF served this country well in the aftermath of the violent insurrection. He pushed back against the big lie told by the puppet master in chief and participated as a prominent member of the January 6th Committee to defend our democracy. ADAM SCHIFF has done nothing wrong. He has worked hard to do right by the American people. The extreme MAGA Republicans have no vision, no agenda, and no plan to make life better for the American people, so we have this phony, fake, and fraudulent censure resolution. A DAM SCHIFF will not be silenced. We will not be silenced. House Democrats will not be silenced today. We will not be silenced tomorrow. We will not be silenced next week. We will not be silenced next month. We will not be silenced next year. We will not be silenced this decade. We will not be silenced this century. You will never ever silence us. We will always do what is right. We will always fight for the Constitution, fight to defend democracy, fight for freedom, expose extremism, and continue America’s long, necessary, and majestic march toward a more perfect Union. 29:10 Rep. Ralph Norman (R-SC): Not only did he spread falsehoods that abused his power, he went after a man, Carter Page, who was completely innocent. Inspector General Horowitz found 17 major mistakes. 31:20 Rep. Mike Quigley (D-IL): What really gnaws on the majority and what really bothers them is that Mr. SCHIFF was way better than anybody on their team at debate, at leadership, at messaging, and at legal knowledge. He kicked their ass. He was better, he was more effective, and that still bothers them. 35:40 Rep. Tom McClintock (R-CA): Mr. Speaker, I opposed the original version of this resolution, not to defend Mr. SCHIFF’s lies, but to defend the process that exposed those lies. We must never punish speech in this House, only acts. The only way to separate truth from falsehoods or wisdom from folly is free and open debate. We must never impose excessive fines that would effectively replace the constitutional two-thirds vote for expulsion with a simple majority. This new version removes the fine and focuses instead on specific acts, most particularly the abuse of his position as Intelligence Committee chairman by implying he had access to classified information that did not exist and his placement into the CONGRESSIONAL RECORD of the Steele dossier that he knew or should have known was false. 42:35 Rep. Jim Himes (D-CT): The most important thing I can say is that I sat next to ADAM SCHIFF for years. He is a man of integrity and dignity. 49:45 Rep. Sylvia Garcia (D-TX): ADAM SCHIFF is tough. ADAM SCHIFF is smart. ADAM SCHIFF gets the job done. ADAM SCHIFF holds the powerful accountable. 56:35 Rep. André Carson (D-IN): Mr. Speaker, what I do know is that ADAM SCHIFF defended the U.S. Constitution. He led an impartial investigation which followed the facts and led to the first of two impeachments of a former President. 1:00:20 Rep. Raja Krishnamoorthi (D-IL): Today, we are voting on a joke of a measure to censure ADAM SCHIFF, a true public servant and patriot. I urge a strong ‘‘no’’ against this resolution targeting a true American hero. 1:08:30 Rep. Nancy Pelosi (D-CA): The only advantage to all of this is that instead of reversing what we did on the IRA to save the planet or reversing what we did to reduce the cost of prescription drugs, we are wasting time. September 26, 2019 CNN Clips 9:05 Wolf Blitzer: As you know, Mr. Chairman, you're being severely criticized by a lot of Republicans for mocking the president during your opening remarks today at the committee. Was it a mistake to make light of the situation? Rep. Adam Schiff (D-CA): Well, I don't think it's making light of a situation. And I certainly wouldn't want to suggest that there's anything comical about this. But I do think it's all too accurate, that this President, in his conversations with the President of Ukraine, was speaking like an organized crime boss. And the fact that these words are so suggestive that the President used of what we have seen of organized crime harkens back to me of what, for example, James Comey said when he was asked by the President if he could let this matter involving Flynn go, when Michael Cohen testified about how the President speaks in a certain code where you understand exactly what's required here. The point is that the President was using exactly that kind of language. And the President of Ukraine fully understood what he was talking about. Wolf Blitzer: Do you regret the, what you call the parody, the use of those phrases during the course of your opening statement? Rep. Adam Schiff (D-CA): No, I think everyone understood -- and my GOP colleagues may feign otherwise -- that when I said, suggested that it was as if the President said, "listen carefully, because I'm only going to tell you seven more times" that I was mocking the President's conduct. But make no mistake about this, what the President did is of the utmost gravity and the utmost seriousness, because it involves such a fundamental betrayal of his oath. September 26, 2019 House Permanent Select Committee on Intelligence Witnesses: Joseph Maguire, Acting Director of National Intelligence, Office of the Director of National Intelligence Clips 6:54 Rep. Adam Schiff (D-CA): President Zelensky, eager to establish himself at home as the friend of the president of the most powerful nation on earth, had at least two objectives: get a meeting with the president and get more military help. And so what happened on that call? Zelensky begins by ingratiating himself, and he tries to enlist the support of the president. He expresses his interest in meeting with the president, and says his country wants to acquire more weapons from us to defend itself. 7:30 Rep. Adam Schiff (D-CA): And what is the President’s response? Well, it reads like a classic organized crime shakedown. Shorn of its rambling character and in not so many words, this is the essence of what the President communicates. We’ve been very good to your country. Very good. No other country has done as much as we have. But you know what? I don’t see much reciprocity here. I hear what you want. I have a favor I want from you, though. And I’m going to say this only seven times, so you better listen good. I want you to make up dirt on my political opponent. Understand? Lots of it, on this and on that. I'm gonna put you in touch with people, not just any people, I'm going to put you in touch with Attorney General of the United States, my attorney general, Bill Barr. He's got the whole weight of the American law enforcement behind him. And I'm gonna put you in touch with Rudy, you're going to love Him, trust me. You know what I'm asking. And so I'm only going to say this a few more times, in a few more ways. And by the way, don't call me again, I'll call you when you've done what I asked. This is, in some in character, what the President was trying to communicate with the President of Ukraine. It would be funny if it wasn't such a graphic betrayal of the President's oath of office. But as it does represent a real betrayal, there's nothing the President says here that is in America's interest, after all. 1:14:40 Rep. Mike Turner (R-OH): While the chairman was speaking I actually had someone text me, "Is he just making this up?" And yes, yes he was. Because sometimes fiction is better than the actual words or the texts. But luckily the American public are smart and they have the transcript, they've read the conversation, they know when someone's just making it up. 1:19:45 Rep. Adam Schiff (D-CA): In my summary, the President's call was meant to be at least part in parody. The fact that that's not clear is a separate problem in and of itself. Of course, the president never said, "If you don't understand me, I'm gonna say seven more times." My point is, that's the message that the Ukraine president was receiving, in not so many words. September 17, 2019 Morning Joe on MSNBC Clips Rep. Adam Schiff (D-CA): We have not spoken directly with the whistleblower. We would like to. But I'm sure the whistleblower has concerns that he has not been advised as the law requires by the Inspector General or the Director of National Intelligence, just as to how he is to communicate with Congress. And so the risk of the whistleblower is retaliation. Will the whistleblower be protected under the statute if the offices that are supposed to come to his assistance and provide the mechanism are unwilling to do so? But yes, we would love to talk directly with the whistleblower. March 28, 2019 CNN with Chris Cuomo Clips Rep. Adam Schiff (D-CA): One, there's ample evidence of collusion in plain sight and that is true. And second, that is not the same thing as whether Bob Muller would be able to prove beyond a reasonable doubt the crime of conspiracy. There's a difference between there being evidence of collusion and proof beyond reasonable doubt of a crime. March 24, 2019 This Week with George Stephanopoulos Clips George Stephenopolous: You have said though in the past there is significant evidence of collusion. How do you square that with Robert Muller's decision not to indict anyone. Rep. Adam Schiff (D-CA): There is significant evidence of collusion, and we've set that out time and time again, from the secret meetings in Trump Tower to the conversations between Flynn and the Russian ambassador, to the providing of polling data to someone linked to Russian intelligence, and Stone's conversation with WikiLeaks and the GRU through -- George Stephenopolous: None of it prosecuted. Rep. Adam Schiff (D-CA): Well that's true. And as I pointed out on your show many times, there's a difference between compelling evidence of collusion and whether the Special Counsel concludes that he can prove beyond a reasonable doubt the criminal charge of conspiracy. Rep. Adam Schiff (D-CA): We need to be able to see any evidence that this President, or people around him, may be compromised by a foreign power. We've of course seen all kinds of disturbing indications that this President has a relationship with Putin that is very difficult to justify or explain. Rep. Adam Schiff (D-CA): It's our responsibility to tell the American people, "These are the facts. This is what your president has done. This is what his key campaign and appointees have done. These are the issues that we need to take action on." This is potential compromise. There is evidence, for example, quite in the public realm that the President sought to make money from the Russians, sought the Kremlin's help to make money during the presidential campaign, while denying business ties with the Russians. February 17, 2019 CNN with Dana Bash Clips Rep. Adam Schiff (D-CA): Look, you can see evidence in plain sight on the issue of collusion, pretty compelling evidence. Now, there's a difference between seeing evidence of collusion and being able to prove a criminal conspiracy beyond a reasonable doubt. August 5, 2018 Face the Nation Clips Margaret Brennan: Can you agree that there has been no evidence of collusion, coordination, or conspiracy that has been presented thus far between the Trump campaign and Russia? Rep. Adam Schiff (D-CA): No, I don't agree with that at all. I think there's plenty of evidence of collusion or conspiracy in plain sight. December 10, 2017 CNN Clips Rep. Adam Schiff (D-CA): But we do know this: the Russians offered help, the campaign accepted help. The Russians gave help and the President made full use of that help, and that is pretty damning whether it is proof beyond a reasonable doubt of conspiracy or not. November 1, 2017 MSNBC Clips Rep. Adam Schiff (D-CA): What is clear as this: the Kremlin repeatedly told the campaign it had dirt on Clinton and offered to help it and at least one top Trump official, the President's own son, accepted. Rachel Maddow: The Kremlin offered dirt to the Trump campaign. The President's campaign said yes to that offer. That's no longer an open question. All that stuff has now been proven and admitted to. Adam Schiff, the top Democrat on the House Intelligence Committee today, using his time today, using his opening statement today to walk through -- ding ding ding, point by point -- what we've already learned in black and white, in written correspondence and public statements and in freaking court filings, about all the times the Trump campaign was offered helped by Russia to influence our election and all the times the Trump campaign said "Yes, please." March 23, 2017 The View Clips Jedediah Bila: Congressman, you made yesterday what some are deeming a provocative statement by saying that there is more than circumstantial evidence now that the Trump camp colluded with Russia. Senator John McCain was critical of that, others have been critical of that. Can you defend that statement? Rep. Adam Schiff (D-CA): Yes. And I, you know, I don't view it as the same bombshell that apparently they did. Look, I've said that I thought there was circumstantial evidence of collusion or coordination, and that there was direct evidence of deception. And no one had an issue with that. And I don't think anyone really contested that, on the basis of the information we keep getting, I can say, in my opinion, it's now not purely circumstantial. We had the FBI Director testify in open session about this, acknowledge an FBI investigation. Obviously, this is now public. And I think it's fair to say that that FBI investigation is justified, that that wouldn't be done on the basis of not credible allegations. And so I think it's appropriate to talk in general terms about the evidence, but I don't think it's appropriate for us to go into specifics and say, "This is what we know from this piece of classified information," or "this what we know from this witness." But I do think, in this investigation where the public is hungry for information, it is important that we try to keep the public in the loop. That's why we're having public hearings. March 22, 2017 MSNBC Clips Chuck Todd: You have seen direct evidence of collusion? Rep. Adam Schiff (D-CA): I don't want to go into specifics, but I will say that there is evidence that is not circumstantial. March 19, 2017 Meet the Press Clips Chuck Todd: Collusion is sort of what hasn't been proven here between whatever the Russians did and the Trump campaign. In fact, the former Acting Director of the CIA, who was Mike Morell, who was a supporter of Hillary Clinton, he essentially reminded people and took Director Clapper at his word on this show who said, there has been no evidence that has been found of collusion. Are we at the point of -- at what point do you start to wonder if there is a fire to all this smoke? Rep. Adam Schiff (D-CA): Well, first of all, I was surprised to see Director Clapper say that because I don't think you can make that claim categorically as he did. I would characterize it this way at the outset of the investigation: there is circumstantial evidence of collusion. There is direct evidence, I think, of deception. Executive Producer Recommended Sources Music by Editing Production Assistance
Since May 2022, Congress has held three hearings looking into Unidentified Aerial Phenomena and the possibility of non-human intelligent life flying aircraft on Earth. In this episode, hear testimony from three Defense Department officials and three credible whistleblowers, whose testimony is often as contradictory as it is shocking. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Whistleblower Protections Clayton E. Wire. 2020. Ogborn Mihm LLP. Security Classifications Security Classification of Information, Volume 2. Principles for Classification of Information. Arvin S. Quist. Oak Ridge National Laboratory: 1993. UAP Background Brian Entin. June 6, 2023. NewsNation. Leslie Kean and Ralph Blumenthal. June 5, 2023. The Debrief. May 16, 2021. 60 Minutes. Ralph Blumenthal. December 18, 2017. The New York Times. Helene Cooper et al. December 16, 2017. The New York Times. Independent Research and Development National Defense Industrial Association. SCIFs Derek Hawkins et al. April 26, 2023. The Washington Post. Kirkpatrick Response Letter D. Dean Johnson (@ddeanjohnson). Twitter. Audio Sources July 26, 2023 House Committee on Oversight and Accountability, Subcommittee on National Security, the Border, and Foreign Affairs Witnesses: , Former Commanding Officer, United States Navy Ryan Graves, Executive Director, Americans for Safe Aerospace David Grusch, Former National Reconnaissance Office Representative, Unidentified Aerial Phenomena Task Force, Department of Defense Clips timestamps reflect C-SPAN video 4:30 Rep. Glenn Grothman (R-WI): The National Defense Authorization Act of 2022 established the All-domain Anomaly Resolution Office or AARO to conduct or to coordinate efforts across the Department of Defense and other federal agencies to detect, identify and investigate UAPs. However, AARO's budget remains classified, prohibiting meaningful oversight from Congress. 19:50 Rep. Robert Garcia (D-CA): We know the Senate is taking up an amendment to their defense authorization bill which will create a commission with broad declassification authority and we should all agree that that is an important step. 27:40 Ryan Graves: Excessive classification practices keep crucial information hidden. Since 2021, all UAP videos are classified as secret or above. This level of secrecy not only impedes our understanding, but fuels speculation and mistrust. 27:55 Ryan Graves: In 2014, I was an F-18 Foxtrot pilot in the Navy fighter attack Squadron 11, the Red Rippers, and I was stationed at NAS Oceana in Virginia Beach. After upgrades were made to our jet's radar systems, we began detecting unknown objects operating in our airspace. At first, we assumed they were radar errors. But soon we began to correlate the radar tracks with multiple onboard sensors, including infrared systems, and eventually through visual ID. During a training mission in Warning Area W-72, 10 miles off the coast of Virginia Beach. Two F/A-18F Super Hornets were split by a UAP. The object, described as a dark gray or a black cube inside of a clear sphere, came within 50 feet of the lead aircraft and was estimated to be five to 15 feet in diameter. The mission commander terminated the flight immediately and returned to base. Our squadron submitted a safety report, but there was no official acknowledgement of the incident and no further mechanism to report the sightings. Soon these encounters became so frequent that aircrew would discuss the risk of UAP as part of their regular pre-flight briefs. 29:00 Ryan Graves: Recognising the need for action and answers, I founded Americans for Safe Aerospace. The organization has since become a haven for UAP witnesses who were previously unspoken due to the absence of a safe intake process. More than 30 witnesses have come forward and almost 5000 Americans have joined us in the fight for transparency at safeaerospace.org 29:20 Ryan Graves: The majority of witnesses are commercial pilots at major airlines. Often, they are veterans with decades of flying experience. Pilots are reporting UAP at altitudes that appear above them at 40,000 feet potentially in low Earth orbit or in the gray zone below the Karman Line, making unexplainable maneuvers like right hand turns and retrograde orbits or J hooks. Sometimes these reports are reoccurring with numerous recent sightings north of y and in the North Atlantic. Other veterans are also coming forward to us regarding UAP encounters in our airspace and oceans. The most compelling involve observations of UAP by multiple witnesses and sensor systems. I believe these accounts are only scratching the surface and more will share their experiences once it is safe to do so. 31:30 David Grusch: I became a whistleblower through a PPD 19 urgent concern filing in May 2022 with the intelligence community Inspector General following concerning reports from multiple esteemed and credentialed current and former military and intelligence community individuals that the US government is operating with secrecy above congressional oversight with regards to UAPs. My testimony is based on information I've been given by individuals with a long standing track record of legitimacy and service to this country, many of whom also have shared compelling evidence in the form of photography, official documentation, and classified oral testimony to myself and my various colleagues. I have taken every step I can to corroborate this evidence over a period of four years while I was with the UAP Task Force and do my due diligence on the individual sharing it. Because of these steps. I believe strongly in the importance of bringing this information before you. 33:30 David Grusch: In 2019, the UAP Task Force director asked me to identify all Special Access Programs and Controlled Access Programs, also known as SAPS and CAPS. We needed to satisfy our congressionally mandated mission and we were direct report at the time to the [Deputy Secretary of Defense]. At the time, due to my extensive executive level intelligence support duties, I was cleared to literally all relevant compartments and in a position of extreme trust both in my military and civilian capacities. I was informed in the course of my official duties of a multi-decade UAP crash retrieval and reverse engineering program to which I was denied access to those additional read-ons when I requested it. I made the decision based on the data I collected to report this information to my superiors and multiple Inspectors General and, in effect, becoming a whistleblower. 35:20 Cmdr. David Fravor: We were attached to carrier 11, stationed onboard USS Nimitz and began a two month workup cycle off the coast of California. On this day, we were scheduled for a two v two air-to-air training with the USS Princeton as our control. When we launched off Nimitz, my wingman was joining out, we were told that the training was going to be suspended and we're going to proceed with real world tasking. As we proceeded to the West, the air controller was counting down the range to an object that we were going to and we were unaware of what we're going to see when we arrived. There, the controller told us that these objects had been observed for over two weeks coming down from over 80,000 feet, rapidly descending to 20,000 feet, hanging out for hours and then going straight back up. For those who don't realize, above 80,000 feet is space. We arrived at the location at approximately 20,000 feet and the controller called the merge plot, which means that our radar blip was now in the same resolution cell as a contact. As we looked around, we noticed that we saw some whitewater off our right side. It's important to note the weather on this day was as close to perfect as you could ask for off the coast of San Diego: clear skies, light winds, calm seas, no white caps from waves. So the whitewater stood out in a large blue ocean. All four of us, because we were in an F/A-18F F, so we had pilots and WSO in the backseat, looked down and saw a white tic tac object with a longitudinal axis pointing north-south and moving very abruptly over the water, like a ping pong ball. There were no rotors, no rotor wash, or any sign of visible control surfaces like wings. As we started clockwise towards the object, my WSO I decided to go down and take a closer look with the other aircraft staying in high cover to observe both us and the tic tac. We proceeded around the circle about 90 degrees from the start of our descent, and the object suddenly shifted its longitudinal axis, aligned it with my aircraft and began to climb. We continued down another 270 degrees, and we went nose low to where the tic tac would have been. Our altitude at this point is about 15,000 feet and the tic tac was about 12,000. As we pulled nose-on to the object within about a half mile of it, it rapidly accelerated in front of us and disappeared. Our wingmen, roughly 8000 feet above us, lost contact also. We immediately turned back to see where the whitewater was at and it was gone also. So as you started to turn back towards the east the controller came up and said "Sir you're not going to believe this but that thing is that your cat point roughly 60 miles away in less than a minute." You can calculate the speed. We returned to Nimitz. We were taking off our gear, we were talking to one of my crews that was getting ready to launch, we mentioned it to them and they went out and luckily got the video that you see, that 90 second video. What you don't see is the radar tape that was never released, and we don't know where it's at. 37:55 Cmdr. David Fravor: What is shocking to us is that the incident was never investigated. None of my crew ever questioned and tapes were never taken and after a couple days it turned into a great story with friends. It wasn't until 2009 until J. Stratton had contacted me to investigate. Unbeknownst to all, he was part of the AATIP program at the Pentagon led by Lue Elizondo. There was an unofficial official report that came out it's now in the internet. Years later, I was contacted by the other pilot Alex Dietrich and asked if I'd been contacted and I said "No, but I'm willing to talk." I was contacted by Mr. Elizondo, and we talked for a short period of time, he said we'd be in contact. A few weeks after that I was made aware that Lue had left the Pentagon in protest and joined forces with Tom DeLonge and Chris Mellon, Steve Justice, and others to form To the Stars Academy, an organization that pressed the issue with leading industry experts and US government officials. They worked with Leslie Kean, who is present today, Ralph Blumenthal, and Helene Cooper to publish the articles in the New York Times in 2017. It removed the stigma on the topic of UFOs, which is why we're here today. Those articles opened the door for the government and public that cannot be closed. It has led to an interest from our elected officials, who are not focused on Little Green Men, but figuring out where these craft are, where they are from, the technology they possess, how do they operate. It also led to the Whistleblower Protection Act in the NDAA. 39:45 Cmdr. David Fravor: In closing, I would like to say that the tic tac object we engaged in 2004 was far superior to anything that we had on time, have today, or are looking to develop in the next 10 years. If we, in fact, have programs that possess this technology and needs to have oversight from those people, that the citizens of this great country elected in office to represent what is best for the United States and best for the citizens. I thank you for your time. 40:20 Rep. Glenn Grothman (R-WI): Are your pilots, or pilots that you interact with as part of your organization, do you feel adequately trained and briefed on how to handle encounters with UAPs? Ryan Graves: No. Right now, military witnesses to UAP have limited options for reporting UAP. But more more concerning is that the commercial aviation sector has not adapted to the lessons that the military has implemented. The military and Department of Defense have stated that UAP represent a critical aviation safety risk. We have not seen that same language being used in the commercial markets, they are not acknowledging this. 41:05 Ryan Graves: Right now we need a system where pilots can report without fear of losing their jobs. There's a fear that the stigma associated with this topic is going to lead to professional repercussions either through management or perhaps through their yearly physical check. So having a secure system, reducing the stigma, and making this information available through the public is going to reduce the concerns that aircrew have. 41:30 Rep. Glenn Grothman (R-WI): Can you just give me a little idea the degree to which reports in the past are not made public right now? Ryan Graves: Well, I don't think there has been a proper reporting system to gather those reports and thus not report them. So to answer your question, I think there is a dearth of data due to the fact that the reporting has been limited up to this time. 41:45 Ryan Graves: There's certainly some national security concerns when we use our advanced sensors and our tactical jets to be able to identify these objects. However, there's no reason that the objects themselves would be classified. I would be curious to see how the security classification guideline actually spells out the different nuances of how this topic is classified from the perspective of UAP, not national security. 43:00 Rep. Glenn Grothman (R-WI): Mr. Fravor, the tic tac incident that you were engaged [in] occurred in 2004. What kind of reporting took place after that incident? Ryan Graves: None. We had a standard debrief where the back-seaters went down to our carrier intel center and briefed what had happened, and that was it. No one else talked to us. And I was in the top 20 in the battle group, no one came that the Captain was aware, the of Admiral was aware, nothing was done. Rep. Glenn Grothman (R-WI): Did your commanding officers provide any sort of justification? Ryan Graves: No, because I was the commanding officer of the quadron. So no. Rep. Glenn Grothman (R-WI): Was this incident the only UAP event that you encountered while you were a pilot? Ryan Graves: Yes, it was. 43:50 Rep. Glenn Grothman (R-WI): Do you believe UAPs pose a potential threat to our national security? Ryan Graves: Yes, and here's why: the technology that we faced was far superior than anything that we had, and you could put that anywhere. If you had one, you captured one, you reverse engineered it, you got it to work, you're talking something that can go into space, go someplace, dropped down in a matter of seconds, do whatever it wants and leave. And there's nothing we can do about it. Nothing. 44:20 Ryan Graves: I would also like to add from a commercial aviation and military aviation perspective, we deal with uncertainty in our operating space as a matter of our professional actions. Identifying friend from foe is very important to us. And so when we have identified targets and we continue to ignore those due to a stigma or fear of what it could be, that's an opening that our adversaries can take advantage of. 44:55 Ryan Graves: There needs to be a location where this information is centralized for processing and there needs to be a two-way communication loop so the operators on the front end have feedback and can get best practices on how to process information, what to do, and to ensure that their reporting is being listened to. Right now there is not a lot of back and forth. 46:25 Ryan Graves: When we were first experiencing these objects off the eastern seaboard in the 2014 to 2015 time period, anyone that had upgraded their radar systems were seeing these objects. So there was a large number of my colleagues that were detecting these objects off the eastern seaboard. They were further correlating that information with the other onboard sensors. And many of them also had their own eyesightings, as well, of these objects. Now, that was our personal, firsthand experience at the time. Since then, as I've engaged this topic, others have reached out to me to share their experiences both on the military side as well as the commercial aviation side. On the military aviation side, veterans that have recently got out have shared their stories and have expressed how the objects we are seeing in 2014 and 2015 continued all the way to 2019, 2020, and beyond. And so it became a generational issue for naval aviators on the Eastern Seaboard. This was something we were briefing to new students. This is something that was included in the notice to airmen to ensure that there was no accidents. And now with commercial aviators, they are reaching out because they're having somewhat similar experiences as our military brothers and sisters, but they do not have any reporting system that they can send this to. 47:55 Cmdr. David Fravor: It's actually, it's a travesty that we don't have a system to correlate this and actually investigate. You know, so if you took the east coast, there's coastal radars out there that monitor our air defense identification zone. Out to 200 miles, they can track these. So when you see them, they could actually go and pull that data and get maneuvering. And instead of just having the airplanes, there's other data sources out there. And I've talked to other government officials on this. You need a centrally located repository that these reports go to. So if you just stuck it in DOD, you wouldn't get anything out of the Intelligence Committee because they have a tendency not to talk. But if you had a central location where these reports are coming in, not just military, but also commercial aviation, because there's a lot of that going on, especially if you talk to anyone that flies from here to Hawaii, over the Pacific they see odd lights. So I think you need to develop something that allows you a central point to collect the data in order to investigate. 51:20 Rep. Robert Garcia (D-CA): Mr. Grusch, finally, do you believe that our government is in possession of UAPs? David Grusch: Absolutely, based on interviewing over 40 witnesses over four years. Rep. Robert Garcia (D-CA): And where? David Grusch: I know the exact locations and those locations were provided to the Inspector General, and some of which to the intelligence committees, I actually had the people with the firsthand knowledge provide a protected disclosure to the Inspector General 52:15 Rep. Tim Burchett (R-TN): Mr. Graves. Again, I'd like to know, how do you know that these were not our aircraft? Ryan Graves: Some of the behaviors that we saw in a working area. We would see these objects being at 0.0 Mach, that's zero airspeed over certain pieces of the ground. So what that means, just like a river, if you throw a bobber in, it's gonna float downstream. These objects were staying completely stationary in category four hurricane winds. The same objects would then accelerate to supersonic speeds 1.1-1.2 Mach, and they would do so in very erratic and quick behaviors that we don't -- I don't -- have an explanation for. 55:50 Rep. Tim Burchett (R-TN): Mr. Fravor, do you believe that you witnessed an additional object under the water in relation to your encounter? Cmdr. David Fravor: I will say we did not see an object. There was something there to cause the whitewater and when we turned around, it was gone. So there was something there that obviously moved. Rep. Tim Burchett (R-TN): Okay, it was not the same object, though, that you were looking at, correct? Cmdr. David Fravor: No, we actually joked that the tic tac was communicating with something when we came back, because the whitewater disappeared. 56:15 Rep. Tim Burchett (R-TN): We were, in another instance, told about the capabilities of jamming when there were some people chasing some of these objects. Did you experience any of that jamming, or interrupting your radar or weapon system? Cmdr. David Fravor: My crew that launched, after we landed, experienced significant jamming to the APG 73 radar, which was what we had on board, which is a mechanically scan, very high end system, prior to APG 79. And yes, it did pretty much everything you could do range, velocity, aspect, and then it hit the lock and the targeting pod is passive. That's when we're able to get the video on. Rep. Tim Burchett (R-TN): I'm about to run out of time, but are you aware of any of our enemies that have that capability? Cmdr. David Fravor: No, no. 57:40 Rep. Jaime Raskin (D-MD): You've identified these as taking place on the East Coast. Is it just on the East Coast where these encounters have been reported? Ryan Graves: No. Since the events initially occurred, I've learned that the objects have been detected, essentially where all Navy operations are being conducted across the world. And that's from the All-domain Anomaly Resolution Office reporting. 58:50 Rep. Jaime Raskin (D-MD): Are there common characteristics to the UAPs that have been sighted by different pilots? And can you describe what the convergence of descriptions is? Ryan Graves: Certainly. We were primarily seeing dark gray or black cubes inside of a clear sphere. Rep. Jaime Raskin (D-MD): I'm sorry, dark gray or black cubes? Ryan Graves: Yes, inside of a clear sphere where the apex or tips of the cube were touching the inside of that sphere. And that was primarily what was being reported when we were able to gain a visual tally of these objects. That occurred over almost eight years, and as far as I know, is still occurring. 59:45 Ryan Graves: I think we need both transparency and the reporting. We have the reporting, but we need to make sure that information can be propagated to commercial aviation as well as the rest of the populace. 1:05:00 Ryan Graves: In the 2003 timeframe, a large group of Boeing contractors were operating near one of the launch facilities at Vandenberg Air Force Base when they observed a very large, 100-yard-sided red square approach the base from the ocean and hover at low altitude over one of the launch facilities. This object remained for about 45 seconds or so before darting off over the mountains. There was a similar event within 24 hours later in the evening. This was a morning event, I believe, 8:45 in the morning. Later in the evening, post sunset, there were reports of other sightings on base including some aggressive behaviors. These objects were approaching some of the security guards at rapid speeds before darting off, and this is information that was received through one of the witnesses that have approached me at Americans for Safe Aerospace. 1:06:15 Ryan Graves: I have not seen what they've described. This object was estimated to be almost the size of a football field, and I have not seen anything personally that large. 1:07:05 Rep. Anna Paulina Luna (R-FL): With the FAA, to your understanding, pilots that are seeing this, commercial airline pilots, are they receiving cease and desist letters from corporations for coming forward with information in regards to safety for potential air airline passengers? Ryan Graves: I have been made privy to conversations with commercial aviators who have received cease and desist orders. Rep. Anna Paulina Luna (R-FL): So the American public should know that corporations are putting their own reputations ahead of the safety of the American people. Would you agree with that statement? Ryan Graves: It appears so. 1:08:15 Rep. Jared Moskowitz (D-FL): So what about G forces? Let's talk about G forces in those vehicles. Could a human survive those G forces with known technology today? Cmdr. David Fravor: No, not for the acceleration rates that we observed. 1:08:45 Cmdr. David Fravor: So we got within a half mile of the tic tac, which people say that's pretty far, but in airplanes that's actually relatively close. Now it was perfectly white, smooth, no windows, although when we did take the original FLIR video that is out there, when you put it on a big screen it actually had two little objects that came out of the bottom of it. But other than that, no windows, no seams, no nothing. 1:09:05 Rep. Jared Moskowitz (D-FL): Mr. Grusch, as a result of your previous government work have you met with people with direct knowledge or have direct knowledge yourself of non-human origin craft? David Grusch: Yes, I personally interviewed those individuals. 1:09:40 Rep. Jared Moskowitz (D-FL): Do you have knowledge or do you have reason to believe that there are programs in the advanced tech space that are unsanctioned? David Grusch: Yes, I do. Rep. Jared Moskowitz (D-FL): Okay. And when you say that they're above congressional oversight, what do you mean? David Grusch: Complicated question. So there's some, I would call it abuse here. So congressional oversight of conventional Special Special Access Programs, and I'll use Title X, so DOD, as an example. So 10 US Code section 119 discusses congressional oversight of SAPS, discusses the Deputy Secretary of Defense's ability to waive congressional reporting. However, the Gang of Eight is at least supposed to be notified if a waived or waived bigoted unacknowledged SAP is created. That's Public Law. Rep. Jared Moskowitz (D-FL): I don't want to cut you off, but how does a program like that get funded? David Grusch: I will give you generalities. I can get very specific in a closed session, but misappropriation of funds. Rep. Jared Moskowitz (D-FL): Does that mean that there is money in the budget that is set to go to a program but it doesn't and it goes to something else? David Grusch: Yes, have specific knowledge of that. Yep. Rep. Jared Moskowitz (D-FL): Do you think US corporations are overcharging for certain tech they're selling to the US government and that additional money is going to programs? David Grusch: Correct, through something called IRAD. 1:12:45 Rep. Virginia Foxx (R-VA): Mr. Grusch, in your sworn testimony you state that the United States government has retrieved supposedly extraterrestrial spacecraft and other UAP related artifacts. You go so far as to state that the US is in possession of "non human spacecraft" and that some of these artifacts have circulated with defense contractors. Several other former military and intelligence officials have come forward with similar allegations albeit in non-public setting. However, Dr. Sean Kirkpatrick, the Director of AARO, previously testified before Congress that there has been and I quote, "no credible evidence" thus far of extraterrestrial act activity or "off world technology" brought to the attention of the office. To your knowledge, is that statement correct? David Grusch: It's not accurate. I believe Dr. Kirkpatrick mentioned he had about 30 individuals that have come to AARO thus far. A few of those individuals have also come to AARO that I also interviewed and I know what they provided Dr. Kirkpatrick and their team. I was able to evaluate -- Rep. Virginia Foxx (R-VA): Okay, I need to go on. David Grusch: Sure. 1:21:25 Rep. Tim Burchett (R-TN): Has the US government become aware of actual evidence of extraterrestrial or otherwise unexplained forms of intelligence? And if so, when do you think this first occurred? David Grusch: I like to use the term non-human, I don't like to denote origin, it keeps the aperture open scientifically. Certainly, like I've just discussed publicly, previously, the 1930s. 1:21:45 Rep. Tim Burchett (R-TN): Okay, can you give me the names and titles of the people with direct, first-hand knowledge and access to some of these crash retrieval programs and maybe which facilities, military bases that the recovered material would be in? And I know a lot of Congress talked about, we're gonna go to area 51. And, you know, there's nothing there anymore anyway, it's just you know, we move like a glacier. And as soon as we announce it, I'm sure the moving vans would pull up, but please. David Grusch: I can't discuss that publicly. But I did provide that information both to the Intel committees and the Inspector General. Rep. Tim Burchett (R-TN): And we could get that in the SCIF, if we were allowed to get in a SCIF with you? Would that be probably what you would think? David Grusch: Sure, if you had the appropriate accesses, yeah. 1:22:30 Rep. Tim Burchett (R-TN): What Special Access Programs cover this information? And how is it possible that they have evaded oversight for so long? David Grusch: I do know the names, once again, I can't discuss that publicly. And how they've evaded oversight in a closed setting I could tell you this specific tradecraft used. Rep. Tim Burchett (R-TN): Alright. 1:22:50 Rep. Tim Burchett (R-TN): When did you think those programs began and who authorized them? David Grusch: I do know a lot of that information, but that's something I can't discuss publicly because of sensitivities Rep. Tim Burchett (R-TN): Alright. 1:24:05 Rep. Tim Burchett (R-TN): Title 10 and title 50 authorization, they seem to say they're inefficient. So who gets to decide this, in your opinion, in the past? David Grusch: It's a group of career senior executive officials. Rep. Tim Burchett (R-TN): Okay. Are they government officials? David Grusch: Both in and out of government and that's about as far I'll go there. Rep. Tim Burchett (R-TN): Well, that leads to my next question, which private corporations are directly involved in this program? How much taxpayer money has been invested in these programs? David Grusch: Yeah, I don't know the specific metrics towards the end of your question. The specific corporations I did provide to the committees in specific divisions, and I spent 11 and a half hours with both Intel committees. 1:25:30 Rep. Tim Burchett (R-TN): Has there been an active US government disinformation campaign to deny the existence of Unidentified Aerial Phenomena? And if so, why? David Grusch: I can't go beyond what I've already exposed publicly about that. Rep. Tim Burchett (R-TN): Okay, I've been told to ask you what that is and how to get it in the record. Rep. Anna Paulina Luna (R-FL): What have you stated publicly in your interviews, for the Congressional Record? David Grusch: If you reference my NewsNation interview, I talk about a multi-decade campaign to disenfranchise public interest basically. 1:28:00 Rep. Alexandria Ocasio-Cortez (D-NY): When it comes to notification that you had mentioned about IRAD programs, we have seen defense contractors abuse their contracts before through this committee. I have seen it personally, and I have also seen the notification requirements to Congress abused. I am wondering, one of the loopholes that we see in the law is that there is, at least from my vantage point, depending on what we're seeing, is that there are no actual definitions or requirements for notification, are there? What methods of notification did you observe? When they say they notified Congress, how did they do that? Do you have insight into that? David Grusch: For certain IRAD activities....I can only think of ones conventional in nature. Sometimes they flow through certain out of say SAP programs that have cognisant authority over the Air Force or something. And those are congressionally reported compartments, but IRAD is literally internal to the contractor. So as long as it's money, either profits, private investment, etc, they can do whatever they want. Rep. Alexandria Ocasio-Cortez (D-NY): To put a finer point on it, when there is a requirement for any agency or company to notify Congress, do they contact the chairman of a committee, do they get them on the phone specifically, is this through an email to hypothetically a dead email box? David Grusch: A lot of it comes through what they call the PPR, Periodic Program Review process. If it's a SAP or Controlled Access Program equity, and then those go to the specific committees. 1:30:40 Rep. Alexandria Ocasio-Cortez (D-NY): For the record, if you were me, where would you look? Titles, programs, departments, regions? If you could just name anything. And I put that as an open question to the three of you. David Grusch: I'd be happy to give you that in a closed environment. I can tell you specifically. 1:35:40 Cmdr. David Fravor: Things are over-classified. I know for a fact the video or the pictures that came out in the 2020 report that had the stuff off the east coast, they were taken with an iPhone, off the east coast. A buddy of mine was one of the senior people there and he said they originally classified a TSS CI, and my question to him was what's TSS CI about these? They're an iPhone, right, literally off the vacates, that's not TSS CI. So they're over classified, and as soon as they do that, they go into the vault, and then you all have to look for them. 1:37:20 Rep. Eric Burlison (R-MO): Has any of the activity been aggressive, been hostile in your reports? David Grusch: I know of multiple colleagues of mine that got physically injured. Rep. Eric Burlison (R-MO): By UAPs, or by people within the federal government? So there has been activity by alien or non-human technology and or beings that has caused harm to humans? David Grusch: I can't get into the specifics in an open environment, but at least the activity that I personally witnessed, and I have to be very careful here, because they tell you never to acknowledge tradecraft, right. So what I personally witnessed, myself and my wife, was very disturbing. 1:38:20 Rep. Eric Burlison (R-MO): You've said that the US has intact spacecraft. You said that the government has alien bodies or alien species. Have you seen the spacecraft? David Grusch: I have to be careful to describe what I've seen firsthand and not in this environment. But I could answer that question behind closed doors. Rep. Eric Burlison (R-MO): Have you seen any of the bodies? David Grusch: That's something I've not witnessed myself. 1:40:45 Rep. Eric Burlison (R-MO): These aircraft, have they been identified that they are being produced by domestic military contractors? Is there any evidence that that's what's being recovered? David Grusch: Not to my knowledge. Plus the recoveries predate a lot of our advanced programs. 1:48:05 David Grusch: I’ve actually never seen anything personal, believe it or not. 1:51:00 Rep. Nancy Mace (R-SC): If you believe we have crashed craft, stated earlier, do we have the bodies of the pilots who piloted this craft? David Grusch: As I've stated publicly already in my NewsNation interview, biologics came with some of these recoveries. 1:51:15 Rep. Nancy Mace (R-SC): Were they human or non human biologics? David Grusch: Non human and that was the assessment of people with direct knowledge on the program I talked to that are currently still on the program. Rep. Nancy Mace (R-SC): And was this documentary evidence video, photos, eyewitness like how would that be determined? David Grusch: The specific documentation, I would have to talk to you in a SCIF about that. 1:53:10 Rep. Nick Langworthy (R-NY): Commander Fravor, we've all seen the floating tic tac video that you engage with on November 14, 2004. Can you briefly talk about why you were off the coast of San Diego that day? Cmdr. David Fravor: Yeah, we were at a work up with all the battle groups. So we integrate the ships with the carrier, the airway with the carrier and we start working. So we were doing an air-to-air defense to hone not only our skills, but those of the USS Princeton, and when they had been tracking him for two weeks. The problem was, there were never manned aircraft airborne when they were tracking them. And this was the first day and unfortunately, we were the ones airborne and went and saw it. Rep. Nick Langworthy (R-NY): Do you remember the weather that day? It was a cloudy or windy or anything out of the ordinary on the Pacific coast. Cmdr. David Fravor: If you're familiar with San Diego, it was a perfect day. Light winds, no whitecaps, clear skies, not a cloud. For flying, it was the best. Rep. Nick Langworthy (R-NY): Now, is it true that you saw, in your words, a 40 foot flying tic tac shaped object? Cmdr. David Fravor: That's correct. Or for some people that can't know what a Tic Tac is, it's a giant flying propane tank. Rep. Nick Langworthy (R-NY): Did this object come up on radar or interfere with your radar or the USS Princeton? Cmdr. David Fravor: The Princeton tracked it, the Nimitz tracked it, the E2 tracked it. We never saw it on our radars, our fire control radars never picked it up. The other airplane that took the video did get it on a radar as soon as it tried to lock in to jam the radar, spit the lock and he's rapidly switched over to the targeting pod which you can do in the F/A 18 Rep. Nick Langworthy (R-NY): From what you saw that day and what you've seen on video. Did you see any source of propulsion from the flying object including on any potential thermal scans from your aircraft? Cmdr. David Fravor: No, there is none. There is no IR plume coming out. And Chad who took the video went through all the EO, which is black and white TV and the IR modes, and there's no visible signs of reflection. It's just sitting in space at 20,000 feet. Rep. Nick Langworthy (R-NY): In your career. Have you ever seen a propulsion system that creates no thermal exhaust? Cmdr. David Fravor: No. Rep. Nick Langworthy (R-NY): Can you describe how the aircraft maneuvered? Cmdr. David Fravor: Abruptly, very determinant. It knew exactly what it was doing. It was aware of our presence. And it had acceleration rates, I mean, it went from zero to matching our speed and no time at all. Rep. Nick Langworthy (R-NY): Now if the fastest plane on Earth was trained to do these maneuvers that you saw, would it be capable of doing that? Cmdr. David Fravor: No, not even close Rep. Nick Langworthy (R-NY): Just to confirm, this object had no wings, correct? Cmdr. David Fravor: No wings. Rep. Nick Langworthy (R-NY): Now the aircraft that you were flying, was it armed? Cmdr. David Fravor: No, never felt threatened at all. Rep. Nick Langworthy (R-NY): If the aircraft was armed, do you believe that your aircraft or any aircraft in possession of the United States could have shot the tic tac down? Cmdr. David Fravor: I'd say no. Just on the performance, it would have just left in a split second. 1:58:10 Rep. Andy Ogles (R-TN): Is there any indication that these UAPs could be essentially collecting reconnaissance information? Mr. Graves? Ryan Graves: Yes. Rep. Andy Ogles (R-TN): Mr. Grusch? David Grusch: Fair assessment. Rep. Andy Ogles (R-TN): Mr. Fravor? Cmdr. David Fravor: Very possible. 1:59:05 Rep. Andy Ogles (R-TN): Mr. Graves and Fravor, in the event that your encounters had become hostile, would you have had the capability to defend yourself, your crew, your aircraft? Ryan Graves: Absolutely not. Cmdr. David Fravor: No. 2:00:55 Rep. Tim Burchett (R-TN): I might have asked this before, but I want to make sure. Do you have any personal knowledge of someone who's possibly been injured working on legacy UAP reverse engineering? David Grusch: Yes. Rep. Tim Burchett (R-TN): Okay. How were they injured? Was it something like a radioactive type situation or something we didn't understand? I've heard people talk about Havana syndrome type incidences. What what was your recollection of that? David Grusch: I can't get into specifics, but you could imagine assessing an unknown unknown, there's a lot of potentialities you can't fully prepare for. 2:02:10 Rep. Tim Burchett (R-TN): Are you aware of any individuals that are participating in reverse engineering programs for non terrestrial craft? David Grusch: Personally, yes. Rep. Tim Burchett (R-TN): Do you know any that would be willing to testify if there were protections for them? David Grusch: Certainly closed door, and assurances that breaking their NDA, they're not going to get administratively punished. 2:03:45 Rep. Anna Paulina Luna (R-FL): Referring to your news nation interview, you had referenced specific treaties between governments. Article III of the nuclear arms treaty with Russia identifies UAPs. It specifically mentions them. To your knowledge. Are there safety measures in place with foreign governments or other superpowers to avoid an escalatory situation in the event that a UAP malevolent event occurs? David Grusch: Yeah, you're referring to an actual public treaty in the UN register. It's funny you mentioned that, the agreement on measures to reduce the risk of outbreak of a nuclear war signed in 1971, unclassified treaty publicly available. And if you cite the George Washington University national security archives, you will find the declassified, in 2013, specific provisions in this specific Red Line Flass message traffic with the specific codes pursuant to Article Three and also situation two, which is in the the previously classified NSA archive. What I would recommend and I tried to get access, but I got a wall of silence at the White House, was the specific incidents when those message traffic was used, I think some scholarship on that would open the door to a further investigation using those publicly available information. 2:05:20 David Grusch: I have concerns, based on the interviews I conducted under my official duties, of potential violations of the Federal Acquisition Regulations, the FAR. 2:06:10 Rep. Jaime Raskin (D-MD): What was your general attitude or perspective on the UFO discussion before that happened? Cmdr. David Fravor: I never felt that we were alone with all the planets out there. But I wasn't a UFO person. I wasn't, I wasn't watching History Channel and MUFON and all that. Rep. Jaime Raskin (D-MD): And have you had any experiences or encounters since that happened? Cmdr. David Fravor: No. Rep. Jaime Raskin (D-MD): And so, have you formed any general conclusions about what you think you experienced then? Cmdr. David Fravor: Yes, I think what we experienced was, like I said, well beyond the material science and the capabilities that we had at the time, that we have currently, or that we're going to have in the next 10 to 20 years. 2:06:55 Rep. Jaime Raskin (D-MD): You've been able to answer in great detail on certain questions, and then other things you say you're not able to respond to. Can you just explain where you're drawing the line? What's the basis for that? David Grusch: Yeah, based on my DOPSR security review and what they've determined that is unclassified. Rep. Jaime Raskin (D-MD): I see, so you're answering any questions that just call upon your knowledge of unclassified questions, but anything that relates to classified matters you're not commenting on in this context? David Grusch: In an open session, but happy to participate in a closed session at the right level. 2:08:15 Ryan Graves: Certainly I think the most vivid sighting of that would have been near mid air that we had at the entrance to our working area. One of these objects was completely stationary at the exact entrance to our working areas, not only geographically but also at altitude. So it was right where all the jets are going, essentially, on the Eastern Seaboard. The two aircraft flew within about 50 feet of the object and that was a very close visual sighting. Rep. Jaime Raskin (D-MD): And you were in one of the aircraft. Ryan Graves: I was not. I was there when the pilot landed. He canceled the mission after. I was there. He was in the ready room with all his gear on with his mouth open. And I asked him what the problem was and he said he almost hit one of those darn things. Rep. Jaime Raskin (D-MD): He said he was 50 feet away from it? Ryan Graves: Yes, sir. Rep. Jaime Raskin (D-MD): And his description of the object was consistent with the description you gave us before? Ryan Graves: A dark gray or black cube inside of a clear sphere. Rep. Jaime Raskin (D-MD): Inside of a clear sphere. With no self evident propulsion system. Ryan Graves:: No wings, no IR energy coming off of the vehicle, nothing tethering it to the ground. And that was primarily what we're experiencing out there. April 19, 2023 Senate Committee on Armed Services Witnesses: , Director, All-domain Anomaly Resolution Office Clips 2:00:50 Dr. Sean Kirkpatrick: The AARO team of more than three dozen experts is organized around four functional areas: operations, scientific research, integrated analysis, and strategic communications. 2:01:25 Dr. Sean Kirkpatrick: Consistent with legislative direction, AARO is also carefully reviewing and researching the US government's UAP-related historical record. 2:02:05 Dr. Sean Kirkpatrick: AARO is the culmination of decades of DOD, intelligence community, and congressionally directed efforts to successfully resolve UAP encountered first and foremost by US military personnel, specifically navy and air force pilots. 2:03:15 Dr. Sean Kirkpatrick: However, it would be naive to believe that the resolution of all UAP can be solely accomplished by the DOD and IC alone. We will need to prioritize collection and leverage authorities for monitoring all domains within the continental United States. AARO's ultimate success will require partnerships with the inner agency, industry partners, academia and the scientific community, as well as the public. 2:04:15 Dr. Sean Kirkpatrick: I want to underscore today that only a very small percentage of UAP reports display signatures that could reasonably be described as anomalous. The majority of unidentified objects reported to AARO demonstrate mundane characteristics of balloons, unmanned aerial systems, clutter, natural phenomena, or other readily explainable sources. While a large number of cases in our holdings remain technically unresolved, this is primarily due to a lack of data associated with those cases. Without sufficient data, we are unable to reach defendable conclusions that meet the high scientific standards we set for resolution, and I will not close a case that I cannot defend the conclusions of. 2:06:00 Dr. Sean Kirkpatrick: AARO is a member of the department's support to the administration's Tiger Team effort to deal with stratospheric objects such as the PRC high altitude balloon. When previously unknown objects are successfully identified, it is AARO's role to quickly and efficiently hand off such readily explainable objects to the intelligence, law enforcement, or operational safety communities for further analysis and appropriate action. In other words, AARO’s mission is to turn UAP into SEP, Somebody Else's Problem. 2:07:30 Dr. Sean Kirkpatrick: I should also state clearly for the record that in our research, AARO has found no credible evidence thus far of extraterrestrial activity, offworld technology, or objects that defy the known laws of physics. In the event sufficient scientific data were ever obtained that a UAP encountered can only be explained by extraterrestrial origin, we are committed to working with our interagency partners at NASA to appropriately inform [the] U.S. government's leadership of its findings. For those few cases that have leaked to the public previously and subsequently commented on by the US government, I encourage those who hold alternative theories or views to submit your research to credible peer reviewed scientific journals. AARO is working very hard to do the same. That is how science works, not by blog or social media. 2:13:20 Dr. Sean Kirkpatrick: How are we going to get more data? We are working with the joint staff to issue guidance to all the services and commands that will then establish what are the reporting requirements, the timeliness, and all of the data that is required to be delivered to us and retained from all of the associated sensors. That historically hasn't been the case and it's been happenstance that data has been collected. 2:17:20 Dr. Sean Kirkpatrick: As of this week we are tracking over a total of 650 cases. 2:17:45 Dr. Sean Kirkpatrick: Let me walk everyone through what our analytic process looks like. We have essentially a five step process. We get our cases in with all the data, we create a case for that event. My team does a preliminary scrub of all of those cases as they come in, just to sort out, do we have any information that says this is in one of those likely categories? It's likely a balloon, it's likely a bird, it's likely some other object, or we don't know. Then we prioritize those based off of where they are. Are they attached to a national security area? Does it show some anomalous phenomenology that is of interest? If it's just a spherical thing that's floating around with the wind and it has no payload on it, that's going to be less important than something that has a payload on it, which will be less important than something that's maneuvering. So there's sort of a hierarchy of just binning the priorities, because we can't do all of them at once. Once we do that and we prioritize them, we take that package of data in that case and I have set up two teams, think of this as a Red Team Blue Team, or competitive analysis. I have an intelligence community team made up of intelligence analysts and I have an S&T team made up of scientists and engineers, and the people that actually build a lot of these sensors are physicists, because you know, if you're a physicist, you can do anything. But they're not associated with the intel community, they're not intel officers. So they they look at this through the lens of the sensor, of what the data says. We give that package to both teams. The intelligence community is going to look at it through the lens of the intelligence record, and what they assess, and their intel tradecraft, which they have very specific rules and regulations on how they do that. The scientific community, the technical community is going to look at it through the lens of "What is the data telling me? What is the sensor doing? What would I expect a sensor response to be?" and back that out. Those two groups give us their answers. We then adjudicate. If they agree, then I am more likely to close that case, if they agree on what it is. If they disagree, we will have an adjudication. We'll bring them together, we'll take a look at the differences, we'll adjudicate. Why do you say one thing and you say another? We will then come to a case recommendation that will get written up by my team. That then goes to a Senior Technical Advisory Group, which is outside of all of those people, made up of senior technical folks and intel analysts and operators retired out of the community. And they essentially peer review what that case recommendation is. They write their recommendations, that comes back to me, I review it, we make a determination, and I'll sign off one way or the other, and then that will go out as the case determination. Once we have an approved web portal to hang the unclassified stuff, we will downgrade and declassify things and put it out there. In the meantime, we're putting a lot of these on our classified web portal where we can then collaborate with the rest of the community so they can see what's going on. In a nutshell, that is the process. 2:27:10 Dr. Sean Kirkpatrick: There are emerging capabilities out there that in many instances, Russia and China, China in particular, are on par or ahead of us in some areas. So previously, I used to be the Defense Department's intelligence officer for science and technical intelligence. That was our job to look for, what does all that look like? And then my last several years of course, in Space Command, doing space. The adversary is not waiting. They are advancing and they're advancing quickly. If I were to put on some of my old hats, I would tell you, they are less risk averse at technical advancement than we are. They are just willing to try things and see if it works. Are there capabilities that could be employed against us in both an ISR and a weapons fashion? Absolutely. Do I have evidence that they're doing it in these cases? No, but I have concerning indicators. 2:43:45 Dr. Sean Kirkpatrick: So the vision is, at one point, at some point in the future, you should not need an AARO. If I'm successful in what I'm doing, we should be able to normalize everything that we're doing into existing processes, functions, agencies and organizations, and make that part of their mission and their role. Right now the niche that we form is really going after the unknowns. I think you articulated it early on, this is a hunt mission for what might somebody be doing in our backyard that we don't know about? That is what we are doing, but at some point, we should be able to normalize that. That's why it's so important the work we're doing with joint staff to normalize that into DoD policy and guidance. We are bringing in all of our interagency partners. So NASA is providing a liaison for us, I have FBI liaison, I have OSI liaison, I have service liaisons, half of my staff come from the [Intelligence Community], half of my staff come from other scientific and technical backgrounds, I have DOE. So what we're trying to do is ensure, again, as I make UAP into SEP they get handed off to the people that that is their mission to go do, so that we aren't duplicating that. I'm not going to go chase the Chinese high altitude balloon, for example. That's not my job. It's not an unknown, and it's not anomalous anymore. Now it goes over to them. May 17, 2022 House Permanent Select Committee on Intelligence, Subcommittee on Counterterrorism, Counterintelligence, and Counterproliferation Witnesses: , Deputy Director, Office of Naval Intelligence , Under Secretary of Defense Intelligence and Security, Department of Defense Clips 10:00 Ronald Moultrie: The NDAA for fiscal year 2022 has helped us to establish a dedicated office to oversee processes and procedures for the timely collection, processing, analysis, and reporting of UAP related data. 10:15 Ronald Moultrie: What are UAP? Put simply, UAP are airborne objects that, when encountered, cannot be immediately identified. 10:25 Ronald Moultrie: It is the department's contention that by combining appropriately structured, collected data with rigorous scientific analysis, any object that we encounter can likely be isolated, characterized, identified and if necessary, mitigated. 10:40 Ronald Moultrie: We know that our service members have encountered unidentified aerial phenomenon. And because UAPs pose potential flight safety and general security risks, we are committed to a focused effort to determine their origins. Our effort will include the thorough examination of adversarial platforms and potential breakthrough technologies, US government or commercial platforms, Allied or partner systems, and other natural phenomena. 11:15 Ronald Moultrie: We also understand that there has been a cultural stigma surrounding UAP. Our goal is to eliminate the stigma by fully incorporating our operators and mission personnel into a standardized data gathering process. We believe that making UAP reporting a mission imperative will be instrumental to the effort's success. 11:45 Ronald Moultrie: To optimize the department's UAP work, we are establishing an office within the Office of the Secretary of Defense. That office's function is clear: to facilitate the identification of previously unknown or unidentified airborne objects in a methodical, logical, and standardized manner. 13:50 Scott Bray: Since the early 2000s, we have seen an increasing number of unauthorized and or unidentified aircraft or objects in military controlled training areas and training ranges and other designated airspace. Reports of sightings are frequent and continuing. We attribute this increase in reporting to a number of factors, including our work to destigmatize reporting, an increase in the number of new systems such as quad copters and unmanned aerial systems that are in our airspace, identification of what we can classify as clutter (mylar balloons and other types of of air trash), and improvements in the capabilities of our various sensors to detect things in our airspace. 14:50 Scott Bray: The basic issues, then and now, are twofold. First, incursions in our training ranges by unidentified objects represent serious hazards to safety of flight. In every aspect of naval aviation, safety of our air crews is paramount. Second, intrusions by unknown aircraft or objects pose potential threats to the security of our operations. Our aviators train as they would fight, so any intrusions that may compromise the security of our operations by revealing our capabilities, our tactics, techniques or procedures are of great concern to the Navy and Department of Defense. 16:40 Scott Bray: The direct result of those efforts has been increased reporting with increased opportunities to focus a number of sensors on any objects. The message is now clear: if you see something, you need to report it. And the message has been received. 18:55 Scott Bray: As detailed in the ODNI report, if and when individual UAP incidents are resolved, they likely fall into one of five potential explanatory categories: airborne clutter, natural atmospheric phenomena, US government or US industry developmental programs, foreign adversary systems, or another bin that allows for a holding bin of difficult cases, and for the possibility of surprise and potential scientific discovery. 22:20 Scott Bray: If UAP do indeed represent a potential threat to our security then the capabilities, systems, processes and sources we use to observe, record, study, or analyze these phenomena need to be classified at appropriate levels. We do not want, we do not want potential adversaries to know exactly what we're able to see or understand or how we come to the conclusions we make. Therefore, public disclosures must be carefully considered on a case by case basis. 23:35 Rep André Carson (D-IN): This is the third version of this task force and, to be frank, one of Congress's concerns is that the executive branch, in administrations of both parties, has been sweeping concerns about UAPs under the rug by focusing on events that can be explained and avoiding events that cannot be explained. What can you say to give the American people confidence that you aren't just focusing our attention on low hanging fruit with easy explanations? Ronald Moultrie: Congressman, I'll start and then Mr. Bray, please feel free to weigh in. So the way that we're approaching it is with a more thorough, standardized methodology than what we have in the past. First and foremost, the Secretary Defense is chartering this effort, this is not someone lower in the Department of Defense, and he is assigned that task to the Office of Secretary of Defense's Under Secretary for Intelligence Security, that's me, because I'm responsible for looking at intelligence matters, I'm responsible for security matters, and this is potentially both. So we're concerning ourselves with the safety of our personnel, the safety of our installations and bases. There's no other higher power than what we have in actually getting after this. And as you have stated, we have been assigned that task to actually stand up an office, the AOIMSG, which I believe the name server will likely change, but we have moved forward in terms of moving to establish that office. We have, as of this week, picked the director for that effort, a very established and accomplished individual. 42:00 Scott Bray: I would say that we're not aware of any adversary that can move an object without discernible means of propulsion. The question then becomes, in many of these cases where we don't have a discernible means of propulsion in the data that we have, in some cases, there are likely sensor artifacts that that may be hiding some of that, there's certainly some degree of something that looks like signature management that we have seen from some of these UAP. But I would caution, I would simply say that there are a number of other events in which we do not have an explanation. There are a small handful in which there are flight characteristics or signature management that we can't explain with the data that we have. 43:40 Rep. Adam Schiff (D-CA): With respect to the second two videos showing the small triangles, the hypothesis is that those are commercial drones that because of the use of night vision goggles appear like triangles, is that the operating assessment? Scott Bray: Some type of drone, some type of unmanned aerial system, and it is simply that that light source resolves itself through the night vision goggles onto the SLR camera as a triangle. 47:55 Scott Bray: Allies have seen these, China has established its own version of the UAP task force. So clearly a number of countries have observations of things in the airspace that they can identify. Rep. Brad Wenstrup (R-OH): And do we share data with some, with all? Are they sharing with us? Scott Bray: We share data with some and some share data with us. Rep. Brad Wenstrup (R-OH): But not necessarily all that have publicly reported something? Scott Bray: That's correct. 52:25 Scott Bray: When I say we can't explain, I mean, exactly as you describe there, that there's a lot of information, like the video that we showed, in which there's simply too little data to create a reasonable explanation. There are a small handful of cases in which we have more data that our analysis simply hasn't been able to fully pull together a picture of what happened. Those are the cases where we talked about where we see some indications of flight characteristics or signature management that are not what we had expected. When it comes to material that we have, we have no material. We have detected no emanations within the UAP task force that would suggest it's anything non-terrestrial in origin. 59:35 Rep. Raja Krishnamoorthi (D-IL): There have been no collisions between any US assets and one of these UAPs, correct? Scott Bray: We have not had a collision, we've had at least 11 near misses though. 59:55 Rep. Raja Krishnamoorthi (D-IL): And there's been no attempt, there's no communications, or any kind of communication signals that emanate from those objects that we've detected, correct? Scott Bray: That's correct. Rep. Raja Krishnamoorthi (D-IL): And have we attempted to communicate with those objects? Scott Bray: No. Rep. Raja Krishnamoorthi (D-IL): So we don't we don't even put out an alert saying, you know, "U.S., identify yourself, you are within our flight path," or something like that? Scott Bray: We haven't said anything like that. We've not put anything out like that, generally speaking. For example, in the video that we showed earlier, it appears to be something that is unmanned, appears to be something that may or may not be in controlled flight, and so we've not attempted any communication with that. 1:00:55 Rep. Raja Krishnamoorthi (D-IL): And I assume we've never discharged any armaments against a UAP, correct? Scott Bray: That's correct. 1:01:05 Rep. Raja Krishnamoorthi (D-IL): How about wreckage? Have we come across any wreckage of any kind of object that has now been examined by you? Scott Bray: The UAP task force doesn't have any wreckage that isn't explainable, that isn't consistent with being of terrestrial origin. 1:01:20 Rep. Raja Krishnamoorthi (D-IL): Do we have any sensors underwater to detect on submerged UAPs, anything that is in the ocean or in the seas? Ronald Moultrie: So I think that would be more properly addressed in a closed session. 1:05:30 Ronald Moultrie: So one of the concerns that we have is that there are a lot of individuals and groups that are putting information out there that that could be considered to be somewhat self serving. We're trying to do what's in the best interests of, one, the Department of Defense, and then two, what's in the best interest of the public, to ensure that we can put factually based information back into the mainstream and back into the bloodstream of the reporting media that we have, so people understand what's there. It's important because we are attempting, as this hearing has drawn out to understand, one, what may just be natural phenomenon, two, what may be sensor phenomenology or things that were happening with sensors, three, what may be legitimate counterintelligence threats to places that we have or bases or installations, or security threats to our platforms. And anything that diverts us off of what we have with the resources that have been allocated to us, sends us off in the spurious chases and hunts that are just not helpful. They also contribute to the undermining of the confidence that the Congress and the American people have that we are trying to get to the root cause of what's happening here, report on that, and then feed that back into our national security apparatus so we are able to protect the American people and our allies. So it is harmful, it is hurtful, but hopefully, if we get more information out there, we'll start to lessen the impact of some of those spurious reports. Rep. Darin LaHood (R-IL): So just taking that a step further, that misinformation, false narratives, manufactured, what are the consequences? Are there legal consequences? Are there examples that you can give us where people have been held accountable by this misinformation or disinformation? Ronald Moultrie: I can't give you any examples where somebody has been legally held liable for putting something out there. Rep. Darin LaHood (R-IL): Well, what's the deterrent from people engaging in this activity? Ronald Moultrie: I don't know. I don't have that answer. That's something that [we] welcome the dialogue with Congress to talk about that with the members who helped legislate those laws to say what should be the legal ramifications that we could use to potentially hold individuals accountable, whether it be citizens or information that might be injected into our media by other other forces or other countries, if you will. 1:11:40 Ronald Moultrie: I think right now what's really important for us to protect is how we know certain things. So there are a lot of things that we know, whether it'd be about the thinking of other leaders around the world, the weapon systems that are being developed, or how we detect things that may be threats to us. Many of those things are the result of some of our most sensitive sources and methods. And we'll use those things not just for this effort, but those same sources and methods are used to help protect us from adversaries and from others who might mean to do us harm. There aren't separate UAP sensors, there's not a separate UAP processing computer, there's not a separate UAP dissemination chain or whatever. So it's the same processes, it's the same system that we have that helps us do all that. We need to protect that. 1:15:40 Rep. Rick Crawford (R-AR): Do we have an example, can you cite a specific example of an object that can't be explained as having been human made or natural? Scott Bray: I mean, the example that I would say that is still unresolved, that I think everyone understands quite well, is the 2004 incident from Nimitz. We have data on that, and that simply remains unresolved. Executive Producer Recommended Sources Music by Editing Production Assistance
The Chief Operating Officer and a board member of the PGA golf tour recently testified to the Senate as part of its investigation into the possible merger between the PGA and LIV golf tours. In this episode, hear a summary of their testimony which was about monopoly powers, labor rights, Saudi Arabian oil money, loyalty to country…. So much more than golf. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes PGA Tour 2022. Official 2022-23 PGA Tour Media Guide. Saudi Arabia Public Investment Fund. February 24, 2021. BBC. LIV Golf Fergus Bisset. February 1, 2023. Golf Monthly. Doric Sam. August 1, 2022. Bleacher Report. LIV vs. PGA Tim Schmitt. February 17, 2023. Golfweek. PA Media. August 3, 2022. The Guardian. Mark Schlabach. July 11, 2022. ESPN. Yemen Ryan Grim. May 18, 2023. The Intercept. Bruce Riedel. January 27, 2023. Brookings. Shuaib Almosawa. March 16, 2022. The Intercept. Audio Sources July 11, 2023 Senate Committee on Homeland Security & Governmental Affairs, Permanent Subcommittee on Investigations Witnesses: Ron Price, Chief Operating Officer, PGA TOUR Jimmy Dunne, Board Member, PGA TOUR 2002 HBO Music by (found on by mevio) Editing Production Assistance
The U.S. dollar’s status as the global reserve currency is diminishing, which reduces the power that U.S. leaders have over the global economic system. In this episode, hear highlights from recent Congressional testimony during which financial elites examine the current status of the global financial system and what Congress is being told to do to address perceived threats to it (and to their own power). Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes International Monetary Fund Updated June 21, 2023. International Monetary Fund. June 9, 2023. International Monetary Fund. Updated December 2022. International Monetary Fund. Argentina October 17, 2018. International Monetary Fund. January 11, 1999. International Monetary Fund. Ecuador March 13, 2003. International Monetary Fund. Smaller Banks within the World Trade System China World Trade Organization. World Trade Organization. Stephen Kirchner. January 24, 2022. United States Studies Centre. Kurt M. Campbell and Ely Ratner. February 13, 2018. Foreign Affairs. The World Bank December 10, 2020. Bretton Woods Observer. Eric Toussaint. April 2, 2020. Committee for the Abolition of Illegitimate Debt. Yukon Huang. January 15, 2020. Carnegie Endowment for International Peace. Congressional Stock Trade Tracking US Abuse of Sanctions Lawrence Summers et. al. June 15, 2023. Foreign Affairs. Allies Pivoting Jamil Anderlini and Clea Caulcutt. April 9, 2023. Politico. February 2, 2022. Al Jazeera. Witnesses Accessed June 24, 2023. Council on Foreign Relations. Carla Norrlof - Atlantic Council. Audio Sources June 7, 2023 House Financial Services Committee Witnesses: Dr. Tyler Goodspeed, Kleinheinz Fellow, Hoover Institution at Stanford University Dr. Michael Faulkender, Dean’s Professor of Finance, Robert H. Smith School of Business at University of Maryland Dr. Daniel McDowell, Associate Professor, Maxwell School of Citizenship & Public Affairs at Syracuse University Marshall Billingslea, Senior Fellow, Hudson Institute Dr. Carla Norrlöf, Senior Fellow, The Atlantic Council and Professor, University of Toronto Clips 34:05 Dr. Tyler Goodspeed: In 2022, as the Ranking Member highlighted, 88% of all foreign exchange transactions by value involved the United States Dollar, a figure that has been roughly constant since 1989, which is testament to the substantial path dependence in international currency usage due to large positive network externalities. As the Ranking Member also highlighted, 59% of all official foreign exchange reserves were held in US dollars, which is down from a figure of 71.5% in 2001. By comparison 31% of all foreign exchange transactions by value involve the Euro, which is the second most commonly transacted currency, which accounted for 20% of official foreign exchange reserves. 34:50 Dr. Tyler Goodspeed: The fact that 90% of all foreign exchange transactions continue to involve the United States dollar, and that global central banks continue to hold almost 60% of their foreign exchange reserves in US dollars confers net economic benefits on the United States economy. First, foreign demand for reserves of US dollars raises demand for dollar denominated securities, in particular United States Treasury's. This effectively lowers the cost of borrowing for US households, US companies, and federal, state and local governments. It also means that on average, the United States earns more on its investments in foreign assets than we have to pay on foreign investments in the United States, which allows the United States to import more goods and services than we export. Second, foreign demand for large reserves of US dollars and dollar denominated assets raises the value of the dollar and a stronger dollar benefits us consumers and businesses that are net importers of goods and services from abroad. Third, large reserve holdings of US currency abroad in effect constitutes an interest free loan to the United States worth about $10 to $20 billion per year. Fourth, the denomination of the majority of international transactions in US dollars likely modestly lowers the exchange rate risks faced by US companies. Fifth, the given the volume of foreign US dollar holdings and dollar denominated debt, monetary policy actions by foreign central banks generally have a smaller impact on financial conditions in the United States than actions by the United States Central Bank have on financial conditions in other countries. 36:40 Dr. Tyler Goodspeed: However, the benefits of the US dollar's global reserve status are not without costs. The lower interest rates in the United States benefit US borrowers, especially the federal government. They also lower returns to US savers. In addition, though a stronger dollar benefits US consumers and businesses that net import goods and services from abroad, it does also disadvantage US firms that export goods and services abroad as well as firms that compete against imported goods and services. Furthermore, the perception of the US dollar as a safe haven asset means that demand for the dollar tends to increase in response to adverse macroeconomic events that are global in nature. As a result, the competitiveness of US exporters and US firms that compete against imported goods and services are likely to face an increased competitive disadvantage at times of elevated global macroeconomic stress. 37:35 Dr. Tyler Goodspeed: However, despite these costs, studies generally find that the economic benefits of the dollar's prominent global status outweigh the costs, providing a modest net benefit to the United States economy. This does not include the substantial benefit to which the chairman referred of the United States dollar's centrality in global transactions, allowing the United States to utilize financial sanction tools when appropriate in support of national security objectives. 44:50 Dr. Daniel McDowell: With little more than the stroke of the President's pen or through an Act of Congress, the US government can use financial sanctions to impose enormous economic costs on targeted foreign actors, be they individuals, firms, or state institutions, by freezing their dollar assets or cutting them off from access to the banks through which those dollars flow. The consequences for individual targets, known as specially designated nationals or SDNs, are severe, significantly impairing targets capacity to participate in international trade, investment, debt repayment, and depriving them of access to their wealth. Over the last two decades, the United States has used the tool of financial sanctions with increasing frequency. For example, in the year 2000, just four foreign governments were directly targeted under a US Treasury Country Program overseen by the Office of Foreign Assets Control (OFAC). Today that number is greater than 20, and if we include penalties from secondary sanctions the list gets even longer. The more that the United States has reached for financial sanctions, the more it has made adversaries and foreign capitals aware of the strategic vulnerability that stems from dependence on the dollar. Some governments have responded by implementing anti-dollar policies measures that are designed to reduce an economy's reliance on the US currency for investment in cross-border transactions. But these measures sometimes fail to achieve their goals. Others have produced modest levels of de-dollarization. Notable examples here include Russian steps to cut its dollar reserves and reduce the use of the dollar and trade settlement in the years leading up to its full scale invasion of Ukraine, or China's ongoing efforts to build its own international payments network based on the Yuan, efforts that have taken on a new sense of urgency as Beijing has become more aware of its own strategic vulnerabilities from Dollar dependence. 47:05 Dr. Daniel McDowell: The United States should reconsider the use of so-called symbolic financial sanctions. That is, if the main objective of a tranche of sanctions is to signal to the world or to a domestic audience that Washington disapproves of a foreign government's policy choices, other measures that can send a similar signal but do not politicize the dollar system ought to be considered first. Second, the use of financial sanctions against issuers of potential rival currencies in particular, China and its Yuan should face a higher bar of scrutiny. Even a small targeted sanctions program provides information to our adversaries about their vulnerabilities, and gives them time to prepare for a future event when a broad US sanctions program may be called upon as part of a major security crisis, when such measures will be most needed. Finally, whenever possible, US financial sanctions should be coordinated with our allies in Europe and Asia, who should feel as if they are key stakeholders in the dollar system and not vassals to it. Such coordinated efforts will prevent our friends from seeking to conduct business with U.S. adversaries outside of the dollar system and send a message to the whole world that moving activities into secondary currencies, like the Euro or the Yen, is not a safe haven. 48:35 Marshall Billingslea: I'll say at the outset that I agree with you and others that to paraphrase Mark Twain, reports of the dollar's demise have been greatly exaggerated. That said, we need to remind ourselves that in the 16th century the Spanish silver dollar was the dominant currency, in the 17th century it was Dutch florins, in the 18th century it was the pound sterling. The link between a nation's currency and its role as the relatively dominant political actor on the world stage is pretty clear. And that is why people like Lula from Brazil, Putin and Xi all aspire to undercut the role of the dollar as the global reserve currency. 50:00 Marshall Billingslea: If we look at what Russia did in the run-up to its further invasion of Ukraine, they began dumping ownership of treasury bonds in 2018. In that year, they plummeted from $96 billion and holdings down to $15 billion and they also started buying large amounts of gold. China is now, as the Ranking Member has observed, embarking on its own its own gold buying spree. I haven't seen the data for May, but April marked the sixth straight month of Chinese expansion in its gold holdings, and I'm not sure I believe the official figures. We have to recall that China is the dominant gold mining player around the world and half of those gold mining companies are state-owned. So the actual size of China's war chest when it comes to gold reserves may be far higher. In fact, I suspect inevitably far higher than official numbers suggest. Last year China also started dumping its treasuries. 2022 marked the largest or second largest decrease on record, with a drop of about $174 billion, and China stood at the lowest level since 2010. In terms of its holdings, though, this past March they did reverse course. This bears close watching because a sell-off may be a strong indicator of planned aggression. 51:20 Marshall Billingslea: The sheer size of the Chinese economy dwarfs what we've been contending with in the form of Iran, Russia, and so on. And one of the first things that the Biden administration did in the wake of Russia's attack was start sanctioning Russian banks and de-SWIFTing them. That's one thing when you're going after an economy smaller than the size of Texas; it's quite another when you consider that out of the 100 largest banks in the world, China has 20, and all four of the top four are Chinese banks. And that is why many within the Treasury contended when I was there, and they will contend to this day, that these Chinese banks are simply too big to sanction. I don't agree that we can allow that to stand but I do believe we have to start taking very swift action to put us in a situation where we could take punitive measures on these banks if necessary. 54:10 Dr. Carla Norrlöf: I will note that the Dollar's dominance is not quite as strong amongst private actors and private markets as it is with governments. In private transactions, it averages about 45% of the world's total. That includes FX transactions, but also things like issuance of international debt, securities, and cross-border banking. 54:55 Dr. Carla Norrlöf: The Chinese Yuan poses no immediate threat to dollar dominance. It accounts for roughly 3% of overall reserves. So far China has been successful in promoting the Yuan with its trade partners, but the Yuan is scarcely used by countries outside trade with China. China is a potential long term challenger due to its active pursuit of trade and investment relationships. If the Yuan is increasingly used by third countries, it will pose a greater threat to the dollar. 55:30 Dr. Carla Norrlöf: And in addition to these external threats, there is also a domestic threat. Flirting with the possibility of a voluntary default puts dollar dominance at risk. What should the US do to maintain dominance, to curb the domestic threat? Congress should consider creating an alternative mechanism for resolving political differences on government spending and its consequences. 56:00 Dr. Carla Norrlöf: To rein in external threats the United States should, whenever possible, implement multilateral sanctions in support of broadly endorsed goals to shore up the liberal international order. This is likely to limit dollar backlash. 59:40 Marshall Billingslea: The thing I do worry -- I come back to this fact that they've been buying a lot of gold -- that one of the things that they could do, which would be very concerning, if they wind up having larger reserves of gold than we believe, is they could start issuing Yuan or gold denominated, gold-backed Yuan contracts and that would further their ambition for introducing the Yuan onto the world stage. 1:05:00 Marshall Billingslea: China considers the actual composition of its foreign exchange reserves to be a state secret. So they don't publish and they they view it as a criminal offense to try to obtain that information in terms of the balance of how much is gold, how much Dollar or Euro denominated. But the numbers I've seen suggest that still at this moment, about 50% to 60% of their Foreign Exchange reserves are still in Dollars or Euros, which means that they are at high risk of sanctions; we can affect them. The problem is that that war chest that they've built up is enormous. It's more than $3 trillion that they have in Foreign Exchange reserves. Compare that with what Russia had at the onset of its assault, which was around $680 billion, of which we managed to freeze overseas half of it, but Russia is still keeping its economy going despite the Biden administration sanctions. So imagine how they're going to be able to continue with that sizable war kitty in Beijing if they do decide to go after the Taiwanese. 1:09:00 Dr. Tyler Goodspeed: Short term I think the risk is that we continue to see diversification away from the dollar, PRC continuing to push other countries to use trade inverse invoicing and Renminbi, that they continue to promote the offshore Renminbi market, that they continue to promote or force bilateral clearing. Longer term, I think the bigger risk is that foreign investors no longer perceive the United States federal government debt to be as safe and risk free as it is today perceived. 1:41:20 Dr. Daniel McDowell: The demonstration of US control over the actual flow of dollars, of communication, absolutely provides information to adversaries to prepare for events where they may face similar circumstances. And so I think what we're seeing is China, we're seeing Russia, we're seeing other countries try to create alternative payments networks. Russia has its own SPFS payment messaging system. It's quite small. It was launched in 2014, not coincidentally, after the initial round of sanctions targeting Russia. In terms of CIPS, China's cross border payments network, Belarus announced it was having banks join immediately following the 2022 sanctions. So what I'm saying is there's a pattern between when the United States mobilizes control over the pipes and the messaging of cross-border payments and adversaries looking for alternatives. It doesn't mean they're using them, but they're getting plugged into the system as at least sort of a rainy day option in the event of a future targeting. 1:45:35 Dr. Daniel McDowell: I look at China not just as a typical country, because I think they're an alternative service provider. Most countries fall into alternative service users; they're looking for an alternative to the dollar. China, you could perhaps put Europe in this as well, are the only two sort of economic BLOCs capable, I think, of constructing an attractive enough cross-border payments network that could attract those alternative service users that are looking for that network. And so that's why I think again, with China, there should be a higher bar of scrutiny. 2:02:20 Dr. Tyler Goodspeed: As deficits mount and as the debt burden rises above 100%, I think the Congressional Budget Office has it ending the budget window at about 119% of our economy, then we will probably observe an acceleration of diversification away from the dollar as a hedge. Again, I don't see another single currency displacing the dollar as the major international currency or as the major reserve currency, but continued diversification. May 25, 2023 House Financial Services Committee Witnesses: Jesse M. Schreger, Associate Professor of Business, Columbia Business School Mark Rosen, Partner, Advection Growth Capital and former Acting Executive Director, International Monetary Fund (IMF) Daniel F. Runde, Senior Vice President, Center for Strategic & International Studies(CSIS) Rich Powell, Chief Executive Officer, ClearPath & ClearPath Action Daouda Sembene, Distinguished Nonresident Fellow, CGD and CEO, AfriCatalyst Clips 39:55 Mark Rosen: The IMF is the global lender of last resort to countries that are in economic distress. IMF borrowers usually have a balance of payments problem, are running out of foreign exchange reserves, and so cannot meet their obligations. The IMF negotiates a set of economic policies with the borrower in government to alleviate the crisis, and, conditional on the government implementing the agreed policies, provides a loan in tranches, normally over a three year period. 41:00 Mark Rosen: The biggest challenge the IMF faces today is China which, as we've heard, has lent vast sums to emerging market and low income countries in a non-transparent and irresponsible manner. Many IMF members are now struggling to repay China. 42:05 Mark Rosen: The United States is the largest shareholder in the IMF and has veto power over certain key decisions and it's critical that the US continues to maintain its ownership of more than 15% which enables it to have this veto power. 42:20 Mark Rosen: China for some time, has been pressing for an increased quota share at the IMF. However, given its irresponsible lending, and then willingness to provide debt relief to developing countries, this is not the time to reward China with increased ownership at the Fund. Two other issues I'd like to focus on are anti-corruption and the catalytic role of the private sector in the work of the IMF. Corruption is a severe problem for many emerging market countries, which do not have strong institutions that can confront and root out corruption. The IMF is certainly doing a much better job than it did historically on anti-corruption, but I believe it's critical that it continues to make anti corruption laws and policies front and center in the conditions of its lending programs, as well as a focus of its technical assistance. Only by reducing corruption will many of these countries be able to attract the vast amount of private sector investment which is potentially available and remains the ultimate key to reducing poverty. Establishing a rule of law, including laws to protect private property is key to unlocking this investment. And it should be a focus of the IMF and World Bank to encourage these countries to improve the rule of law and to fight corruption. If they do that, emerging market countries can attract private capital and grow rapidly as many countries that have followed that path have already done so successfully. 44:45 Daniel Runde: Multilateral development banks, MDBs, under US and Western leadership are one way that we can respond with something. The United States built and strengthened the MDB system. MDBs provide money, advice, data and convening power to help developing countries solve problems. If the US exerts its influence over these institutions, they are forced multipliers of a US-led global system. If we disregard our leadership role, then other actors, including China, can exert influence over them. The World Bank Group is a series of institutions: it lends money to national governments, it has a private sector arm, and has an insurance arm. There are a series of other regional development bank's including the InterAmerican Development Bank, the Asian Development Bank -- Taiwan is a member of the Asian Development Bank -- the African Development Bank and the EBRD, the European Bank for Reconstruction Development Bank, focused mainly on countries that used to be behind the Iron Curtain. The United States has been instrumental in creating the majority of these institutions and remains the largest, or one of the largest, shareholders of every afformentioned MDB. Since the founding of these institutions, the US has used its shareholding power to shape the policies and activities of MDBs in indirect support of American foreign policy. 47:10 Daniel Runde: What role does China play in the MDBs? They're a shareholder. China continues to borrow from the World Bank and the Asian Development Bank. That is crazy. That needs to stop. China is a shareholder. Also, Chinese firms can bid on MDB projects. China wins a lot of in terms of dollar value, a lot of the dollar value of World Bank contracts. Something to take a look at. 47:35 Daniel Runde: How does the Belt and Road figure into the MDBs? You all have heard of the Belt and Road. Infrastructure is now a strategic issue. China's Belt and Road Initiative is a combination of construction and financing projects for roads, airports, and energy around the world. Unfortunately for us, BRI is an ambitious project that speaks to the hopes of China's friends and potential friends. To counter the BRI, the US needs a positive alternative that says more than, "Don't work with China." Right? That's not a strategy. We've got to have an alternative. 1:12:50 Rep. Andy Barr (R-KY): How do we end China's eligibility to borrow from the World Bank? Daniel Runde: The Asian Development Bank has said they're going to end their eligibility by 2025. We should absolutely hold them to that. There is a temptation for the World Bank and the Asian Development Bank to continue to loan for a couple of reasons. One is they say, "Well, this is a window into how we can understand China better." There's lots of other ways to understand China better. And or this is a way for us to -- for a bunch of lending reasons that they do it. You all have the power of the purse, you have an ability, I think you should have blunted conversations with the administration about this. I suspect it's an open door, but it's going to require, I think, some pushing from Congress. I would encourage this committee to push the administration on ending lending to China. 1:14:30 Jesse Schreger: So fundamentally right now, the Renminbi is not yet positioned to compete with the US dollar for a number of reasons. First and foremost, the reason that the dollar plays the role it does in the international financial system is it provides the global safe asset. You're confident, except for the upcoming debt ceiling, that you will always be paid back if you own US dollars. That's fundamentally what you know. When you contemplate investing in China and holding Chinese Renminbi as reserves, you're not necessarily sure that you're gonna be able to turn that piece of paper into the goods and services that you need or intervening in FX markets. 1:21:15 Jesse Schreger: First and foremost, what China is trying to do is essentially convince countries around the world that the Renminbi is an alternative asset to invoice your trade and to invest in. And so on the investment side, they've been working very hard to actually allow in foreign capital, encouraging foreign central banks to hold Renminbi denominated bonds as their reserves. And on the trade side, they're encouraging firms to invoice, basically price their goods, in Renminbi. There's a few areas in which they've had challenges there. So first, we actually don't know who are holding most of these Renminbi denominated assets. What you can see is after the US sanctioned Russia back in 2014, it was the Russian Central Bank that effectively announced they were moving out of US dollar denominated assets and into Renminbi, so they did that publicly. And so China has effectively been trying to attract foreign capital of that form and a lot of the reasons for that is that China finds itself vulnerable in the dollar-based financial system. And so what I would say the fundamental area in which the United States can assure the dominance of the dollar is making everyone understand that US Treasuries are the world's safe asset that there is no state of the world in which the United States can or will default. 2:03:25 Jesse Schreger: I think the real way in which people start being able to issue and borrow in Renminbi is when people start thinking in terms of the goods that they need to buy and consume are in Renminbi. Fundamentally, most countries around the world, if they issue a bond in Renminbi, the calculation they have to do is then "okay, I'm going to take my renminbi and convert it into US dollars to buy the thing in which I need." And so while actions in the US financial system are certainly going to affect other countries decisions to borrow in Renminbi, the kind of underlying challenges in Chinese financial markets and fundamentally the lack of goods priced and sold in Renminbi are going to continue to hold back kind of a growth of this market for a while. And in particular, the fact that many countries are reluctant to try to raise money inside of China's liquid onshore capital markets for, effectively, fear of capital controls. If you've raised renminbi in China, you can't get that out and to your projects the way you can if you raise money in the US in dollars. 2:14:55 Daniel Runde: The business model of the World Bank is they lend money to richer countries with a pretty good credit rating and then they cross subsidize that by lending to poor countries with a poor credit rating. My view is, China can finance its own development, we should stop this practice. I think the Asian Development Bank has sort of gotten the memo, but the World Bank has not fully gotten the memo and they'll give you kind of World Bank-y answers to this sort of thing. We got to stop it. Rep. Zach Nunn (R-IA): Mr. Runde, I could not agree with you more. And you highlighted earlier, you know, by 2025, China should graduate from this program. I'd offer that 25 is two years too late. We can start funneling them off that now. Daniel Runde: I agree, sir. Rep. Zach Nunn (R-IA): I think you're in the right spot. Thank you. Music by Editing Production Assistance Cover photo
Another unnecessary crisis averted. In this episode, Jen examines the debt ceiling crisis events of the past to show that the Fiscal Responsibility Act of 2023 - which raised the debt ceiling - is not likely to reduce our government’s debt but will likely ensure that our environment will be trashed for profit. She also examines the best path forward to ensure that the debt ceiling is never used for political leverage again. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Congressional Dish Episodes Debt Ceiling Overview Natalie Sherman. Jun 2, 2023. BBC. Noah Berman. Last Updated May 25, 2023. Council on Foreign Relations. Raymond Scheppach. May 12, 2023. The Conversation. Scott Simon and Lennon Sherburne. April 29, 2023. NPR. New Development Bank Ben Norton. Jun 8, 2023. Monthly Review Online. Jun 5, 2023. New Development Bank. Debt Limit History Bipartisan Policy Center. Paul Lewis and Dan Roberts. Oct 15, 2013. The Guardian. Binyamin Appelbaum and Eric Dash. Aug 5, 2011. The New York Times. Clay Chandler. Sept 22, 1995. The Washington Post. 2023 Crisis Carl Hulse. May 2, 2023. The New York Times. Carl Hulse and Jeanna Smialek. Apr 7, 2023. The New York Times. The Debt Cristina Enache. Jan 31, 2023. Tax Foundation. Updated May 25, 2023. Investopedia. Updated May 2021. Tax Policy Center. The Law Law Outline Sets spending caps for fiscal years 2024 and 2025 2024: Over $886 billion for defense Over $703 billion for non-defense If there is a continuing resolution in effect on or after January 1, 2024 for fiscal year 2024, or a continuing resolution for 2025 on or affect January 1, 2025, defense and non-defense spending will be sequestered, meaning a 1% across the board cut Explains how the House of Representatives must implement this law Explains how the Senate must implement this law Takes money back from accounts where it wasn't all spent including from: The Public Health and Social Services Emergency Fund The Centers for Disease Control and Prevention Specifically their COVID vaccine activities and vaccine supply chains All the money except $7 billion for COVID testing and mitigation All of the SARS-CO-V2 genomic sequencing money except for $714 million All of the money for COVID global health programs International Disaster Assistance funds for the State Department National Institutes of Health - National Institute of Allergy and Infectious Diseases Centers for Medicare and Medicaid Services Community health centers National Health Service Corps Nurse Corps Graduate level teaching health centers Mental health and substance use disorder training for health care professionals and public safety officers Grants for mental health for medical providers Funding for pediatric mental health care access Grants for survivors of sexual assault Child abuse prevention and treatment Medical visits at home for families State and local fiscal recovery funds Rural health care grants Restaurant revitalization fund Elementary and secondary school emergency relief funds Housing for people with disabilities Housing for the elderly Grants to Amtrak and airports Air carrier worker support and air transportation payroll support Defunds the IRS by approximately $1.4 billion Requires agencies to submit plan to reduce spending in an equal or greater amount to every action they take that increases spending. This is easily waived and expires at the end of 2024.. At the end of September, people with Federal student loans will have to begin repayment of their loans, and the Secretary of Education is not allowed to implement an extension of the payment pause. Orders reports about work requirements for welfare payments In order to receive food benefits for more than 3 months in a 3 year period, "able bodied" people have to work at least 20 hours per week or participate in a work program for 20 hours per week unless that person is under 18 or over 50 years old, medically unable to work, is a parent with dependent children, or is pregnant. This provision increases the work requirement age over the next few years so it becomes 55 years old. This provision adds homeless individuals, veterans or foster kids until they are 24 to the list of people exempt from the work requirements This provision expires and the qualifications revert back to what they used to be on October 1, 2030 Changes the requirements for NEPA environmental studies to include "any negative environmental impacts of not implementing the proposed agency action in the case of a no action alternative..." and requires only "irreversible and irretrievable commitments of FEDERAL resources which would be involved in the proposed agency action should it be implemented" Adds circumstances when agencies will not have to produce environmental impact documents Requires environmental impact statements when the action has a "reasonably foreseeable significant effect on the quality of the HUMAN environment." Allows agencies to use "any reliable data source" and says the agency is "not required to undertake new scientific or technical research unless the new scientific or technical research is essential to a reasoned choice among alternatives and the overall costs and time frame of obtaining it are not unreasonable." Assigns roles for "lead agencies" and "cooperating agencies" and says that the agencies will produce a single environmental document Sets a 150 page limit on environmental impact statements and 300 pages for a proposed agency action with "extraordinary complexity" Sets a 75 page limit on environmental assessments Requires lead agencies to allow a "project sponsor" to prepare environmental assessments and environmental impact statements under the supervision of the agency. The lead agency will "evaluate" the documents and "shall take responsibility for the contents." Environmental impact statements must be complete in under 2 years after the EIS is ordered by the agency Environmental assessments must be completed in 1 year The agency may extend the deadlines Project sponsors are given the right to take government agencies to court for failure to meet a deadline "Congress hereby ratifies and approves all authorizations, permits, verifications, extensions, biological opinions, incidental take statements, and any other approvals or orders issued pursuant to Federal law necessary for the construction and initial operation at full capacity of the Mountain Valley Pipeline." Gives the Secretary of the Army 21 days after enactment of this law to issue "all permits or verifications necessary to complete the construction of the Mountain Valley Pipeline across the waters of the United States" "No court shall have jurisdiction..." to review "...any approval necessary for the construction and initial operation at full capacity of the Mountain Valley Pipeline... including any lawsuit pending in a court as of the date of enactment of this section." Suspends the debt limit until January 1, 2025 On January 2, 2025, the debt limit will automatically increase to whatever amount the debt level is at the end of the suspension Audio Sources June 1, 2023 Senate Session Parts & May 31, 2023 May 30, 2023 House Committee on Rules Clips 22:50 Rep. Jason Smith (R-MO): I should note for my colleagues that Democrats could have raised the debt limit last year when they controlled the House of Representatives. 35:30 Rep. Ron Estes (R-KS): The Fiscal Responsibility Act finally ends the federal student loan moratorium and the so-called interest pause, effective August 31, 2023. For every month borrowers were allowed to skip payments, $4.3 billion were added to the American taxpayers debt. 41 months later, the moratorium has cost American taxpayers approximately $176 billion. 1:01:15 Rep. Joe Neguse (D-CO): The President put forward a budget months ago. Chairman Smith, do you know when the President submitted his budget to the United States Congress? Rep. Jason Smith (R-MO): I don't remember but it was -- Rep. Joe Neguse (D-CO): It was March 9th. Rep. Jason Smith (R-MO): It was late. It was due February 1st. Rep. Joe Neguse (D-CO): Oh, I'm glad you noted that. Chairman Smith, when did the Republicans submit their budget? Rep. Jason Smith (R-MO): You would need to ask the budget committee. Rep. Joe Neguse (D-CO): I would need to ask the budget committee. Mr. Estes. When did the Republicans submit their budget? [Pause] Only in the Rules Committee, by the way, could a witness lay blame at the president for being a few weeks late in submitting his budget when his party hasn't submitted a budget, period. 1:06:45 Rep. Brendan Boyle (D-PA): We also run the risk that we will one day not be the reserve currency of the world. The reason why our interest rates are so low comparatively, is because we are a safe haven for investment for the rest of the world. These sort of antics increasingly bring that into doubt whether or not folks will get their money, the folks who are lending to us. 1:24:15 Rep. Teresa Leger Fernandez (D-NM): Now, Standard and Poor's, they downgraded our credit rating. Have they increased that credit rating? Rep. Brendan Boyle (D-PA): No. There are three credit agencies Standard and Poor's, which was the one that downgraded us in 2011, never reversed their downgrade. And frankly my concern and the worry right now is that the other two credit agencies will now follow suit, given the events of the last couple of months, which obviously look very much like 2011 all over again. 1:50:55 Rep. Jim McGovern (D-MA): I continue to be stunned by the fact that when I look at this deal, which focuses on discretionary funding, that the people who seem to be asked to do the most or to absorb the hits the most are the people that least can afford it. The military budget is part of this discretionary budget, it's over 50% of the discretionary budget. The United States spends more on national defense than China, Russia, India, Saudi Arabia, United Kingdom, Germany, France, South Korea, Japan and Ukraine combined. And yet, if this moves forward, we see an increase in defense spending. I mentioned in my opening remarks, I don't know how many of you saw the 60 minutes piece the other day, I mean, we all know, of the cost overruns in the Department of Defense. I mean, the idea that we're spending $10,000 for a $300 oil switch. I mean, it's been there for a long time, and yet, we seem unable to want to grapple with that waste and those cost overruns. I don't know if it's the defense lobbyists or the campaign contributions or whatever it is, but somehow, when it comes to the military budget, you know, not only are we not holding them accountable, but you know, we say we're going to increase it even more, even more, we'll give you more. 2:57:40 Rep. Chip Roy (R-TX): Look, I'm for NEPA reforms 100%. We need them for road projects, transportation, particularly for our energy industry. But my concern here that we've got language that none of us have fully reviewed, going through the committees of jurisdiction that has been adopted, that I've got colleagues texting me and saying they're not 100% sure if that language is good or bad for the purpose intended. I've got colleagues on both sides of the aisle that have raised those questions. And so the purpose intended, of course, is to streamline projects, whatever those projects may be. But I've got a text right here from GOP colleagues saying, Well, I'm not so sure that these will actually do what we think they will do, to streamline said projects. And in fact, a former high up in the administration, in the Energy Department under the Trump administration, just validated that concern by one of my colleagues. Yet we are putting forward this measures saying some grand improvement with respect to NEPA, that that's somehow something we should be applauding when it's not the full package of H.R. 1, which had gone through committee. And importantly, the one thing that I think is 100% clear, is that this bill fails to include even the most basic reform to President Biden's unreliable energy subsidies that were put forward in the so called inflation Reduction Act for the wealthy, elites, corporations, and the Chinese Communist Party just to be blunt. And frankly, it ensures that permitting reform will likely benefit renewables the most. Basically, if you're a government that is subsidizing the crap out of something, in this case, unreliable energy, giving massive subsidies to billion dollar corporations, giving significant subsidies to families that make over 100,000, 300,000 for EVs, because you're chasing your your dreams of, you know, a fossil fuel-less world. You're going to absolutely decimate our grid because you're not going to have the projects being developed for the gas and the coal nuclear that are actually required to keep your grid functioning. But yeah, that's what we're doing and I just for the life of me can't understand why we're applauding that. 3:15:50 Rep. Jason Smith (R-MO): So we've been asking for the IRS to give us a plan of how they wanted to spend the additional $80 billion that they had. They finally gave that to Congress about six weeks, eight weeks ago. They broke down how they're spending the $80 billion: $1.4 billion of it was for hiring more agents and what the bill before you does, it eliminates that $1.4 billion for this year. May 25, 2023 House Session, Parts & May 24, 2023 May 21, 2023 60 Minutes May 17, 2023  Senate Budget Committee Witnesses: Bobby Kogan, Senior Director, Federal Budget Policy, Center for American Progress Bruce Bartlett, Former Deputy Assistant Secretary for Economic Policy, United States Department of Treasury Samantha Jacoby, Senior Tax Legal Analyst, Center on Budget and Policy Priorities Dr. Adam Michel, Director of Tax Policy Studies, Cato Institute Scott Hodge, President Emeritus & Senior Policy Advisor, Tax Foundation Clips 32:25 Bobby Kogan: Today I intend to make two points. First, without the Bush tax cuts, their bipartisan extensions, and the Trump tax cuts, the ratio of debt to GDP would be declining indefinitely. And second, our rising debt ratio is due entirely to these tax cuts and not to spending increases. Throughout this testimony, When I say spending, I mean primary spending, that is spending excluding interest on the federal debt, and every mention of revenues, spending deficits, and debt means those amounts as a percent of GDP. Okay, according to CBO primary deficits are on track to stabilize at roughly 4% over 30 years, high enough to cause the debt to rise indefinitely. The common refrain that you will hear, that I heard when I staffed this committee, and that unfortunately, I expect to hear today, is that rising debt is due to rising spending. Revenues have been roughly flat since the 1960s and while spending was also roughly flat until recently, demographic changes and rising healthcare costs are now pushing the costs up. These facts are true. Our intuitions might reasonably tell us that if revenues are flat, and spending is rising, then the one changing must be to blame. But our intuitions are wrong. In CBO's periodic long term projections earlier this century, spending was projected to continue rising, but despite this CBO routinely projected long term debt stability, It projected revenues to keep up with this rising spending, not due to tax increases, but due to our tax code bringing in more as our country and the people in it prospered. That prosperity results in both higher revenue collection and higher real after tax income for the people whose incomes are growing, it is a win win. In other words, we used to have a tax system that would fully keep pace with rising spending. And then the Bush tax cuts were enacted and expanded, and then on a bipartisan basis eventually made largely permanent in 2013. Under the law dictating CBO and OMB's baseline construction, temporary changes in tax law are assumed to end as scheduled. In practice this meant that CBO is projection showed the Bush tax cuts ending on schedule with the tax code then reverting to prior law. 2012 was therefore the last year in which CBO is projections reflected the Bush tax cuts expiring. Yes, CBO's 2012 long term projections showed rising spending, but it also showed revenues exceeding spending for all 65 years of its extended baseline with indefinite surpluses, CBO showed debt declining indefinitely. But ever since the Bush tax cuts were made permanent CBO has showed revenues lower than spending and has projected debt to rise indefinitely. And since then, the Trump tax cuts further reduced revenues. Without the Bush tax cuts, their bipartisan extensions, and the Trump tax cuts, debt would be declining indefinitely, regardless of your assumptions about the alternative minimum tax. Two points explain this. The first employs a concept called the fiscal gap, which measures how much primary deficit reduction is required to stabilize the debt. The 30 year fiscal gap is currently 2.4% of GDP, which means that on average primary deficits over 30 years would need to be 2.4% of GDP lower for the debt in 2053 to be equal to what it is now. The size of the Bush tax cuts their extensions and the Trump tax cuts under current law over the next 30 years is 3.8% of GDP. Therefore, mathematically and unequivocally without these tax cuts, debt would be declining as a percent of GDP, not rising. 41:45 Bruce Bartlett: The reason I changed my mind about taxes and decided that we needed tax increases happened on a specific day that I'm sure Senator Grassley remembers, if nobody else. And that was the day in November of 2003, when the Medicare Part D legislation passed, and I was just, you know, at the time, I thought the reason Republicans, and I was a Republican in those days, were put on this earth was to control entitlement programs. And I was appalled that an entirely new entitlement program was created that was completely unfunded. It raised the deficit forever by about 1% of GDP. And I thought a dedicated tax should have been enacted, along with that program, which I didn't oppose and don't oppose. In fact, I benefit from it at my age. But I just think that we need proper funding. And that was when I first started saying we needed to raise taxes, because we just can't cut discretionary spending enough to fix the problem. And I think this is the error of the House budget, which cuts almost entirely domestic discretionary spending, doesn't even touch defense, and I just think that's extraordinarily unrealistic and an unserious approach to our deficit problem. We simply have to do something about entitlements. If you're going to control spending, control the budget on the spending side, I don't think we're going to do that. I think we need a new tax. I have advocated a value added tax for many years, as a supplement to our existing tax system. It creates, you can raise a lot of revenue from it every virtually every industrialized country has one. The money could be used to fix things in the tax code, as a tax reform measure. Once upon a time in the 70s, and even the 80s, it was considered the sine qua non of Republican tax policy, because it's a consumption based tax system, a flat tax, and now many Republicans are in favor of something called the Fair Tax which is very similar except that it won't work. Administratively it's poorly designed. The Value Added Tax will work and that's why it should be a better approach to these problems. 49:15 Samantha Jacoby: Wealthy people who get their income from investments accumulate large gains as those assets go up in value over time, but they won't owe income tax unless they sell their assets. And if they never sell, no one will ever pay income tax on those gains. That's arguably the biggest flaw in the tax code. Policymakers should consider a tax like President Biden's budget proposal to enact a minimum tax on very wealthy households. This would treat unrealized capital gains, which is the primary source of income for many wealthy households, as taxable income instead of letting income accrue tax free across generations. 54:15 Dr. Adam Michel: Keeping government small is the best way to ensure that the American people can continue to prosper. 58:45 Scott Hodge: There are many elements of the tax code that benefit the wealthy and big corporations, I absolutely agree, and the inflation Reduction Act is the most recent example of corporate welfare in the tax code. 1:01:00 Samantha Jacoby: So the the 2017 law, it dramatically changed the way that foreign profits are taxed of multinationals. And so what happens now is large corporations who have big, big foreign profit centers, lots of foreign profits overseas, they pay a lower tax rate on those foreign profits than they do on their domestic profits or purely domestic businesses pay. 1:02:55 Bruce Bartlett: And one of the things I tried to do in my prepared testimony is look at what has actually happened in the seven years since then. And very few studies, I know, some of the tests, the footnotes and my colleagues testimony or to our projections based on studies were done in 2017, 2018. I tried to find things that were written more recently, perhaps, or preferably, I should say, in the academic literature, which I think is more substantive and more dependable. And I looked at peer reviewed journals, and the data that I could find showed no macroeconomic impact whatsoever. It didn't raise growth, it didn't lower growth. And I think I concluded in that -- Sen. Sheldon Whitehouse (D-RI): It did shift wealth, correct? Bruce Bartlett: Excuse me? Sen. Sheldon Whitehouse (D-RI): It did shift wealth. Bruce Bartlett: Oh, absolutely. No question about that. But I'm more interested in the macroeconomic effect on investment and growth and employment. And I would just close by saying that if a tax cut had no positive impact, then it can't have any negative impact if you get rid of it. Now, you may not want to for other reasons.... 1:05:25 Bobby Kogan: Right. So our demographic changes and rising healthcare costs are the reason that spending is increasing. If you break spending into two categories, Medicare, Medicaid, Social Security, everything else, including the everything else entitlements, the everything else is shrinking as a percent of GDP and it's the Medicare, Medicaid and Social Security that are growing. And they are growing not because they are getting more, they're doing more, it's not because we're giving more and more to seniors, and to extremely poor people, but because it costs more to do the same. And that is the rising that is the demographics is changing the ratio of non workers to workers and there's also the rising health care costs. And so what this means is that if you want to spend less, you are necessarily saying that future seniors should be getting less of a benefit than they're currently getting. That's the only way to do it. Since that's the portion of the budget that's growing, if you want to cut that, you have to say that the current amount that we're doing for Social Security recipients, the current amount that we're doing for seniors, the current amount that we're doing for people on Medicaid is too much, and future people should be having less. That's the only way to do it. And, you know, the very nice thing that I had though, ii my testimony, we used to have a tax system that despite that rising, we keep up with that, and now we don't. 1:15:50 Bruce Bartlett: Well, first of all, I think in terms of tax shelters and tax evasion and extreme levels of tax avoidance, the problem isn't so much with the law as with the enforcement. And as you know, it's been the policy of Republicans to slash the budget of the IRS in real terms, for many years, which is a way of giving, privatizing tax avoidance to rich people and the rich individuals have the greatest power and ability to evade taxation. And I think it was really wonderful that the Congress increased the IRS budget, and I think it's just the height of absurdity that one of the major elements of the House Republican proposal is to slash the IRS budget again, even though the CBO has said this is a revenue losing proposition. 2:06:40 Bruce Bartlett: I think there's absolutely no question that the debt limit is unconstitutional, and not just under the 14th Amendment, section four, but under the general powers of the President. I mean, one of the things that I will point out is that the debt limit is a very serious national security issue. A huge percentage of the national debt that is owned by foreigners is owned by foreign central banks. They are not going to be happy if their assets are suddenly worth a great deal less than they thought they were. I think the President has full power within his inherent authority to simply declare the debt limit null and void. And I would point out that it's not a simple question of whether you just break the debt limit. I think a lot of people, even on this committee, forget the impoundment part of the Budget Act of 1974, which says the President must spend the money that is appropriated by law, he doesn't have the choice not to, which is what some Republicans seem to think that he can do. And he lacks that power. So I would agree that the President has that power. I wish he would use it. I wish it as sincerely as anything I believe in life. Thank you. May 16, 2023 May 16, 2023 May 15, 2023 May 10, 2023 Senate Session, Parts & May 19, 2023 May 9, 2023 May 4, 2023 Senate Session, Parts & May 2, 2023 Music by Editing Production Assistance
On February 3rd, a train carrying 20 cars with poisonous, flammable chemicals derailed in East Palestine, OH. In this episode, we’re going to get some answers. Using testimony from four Congressional hearings, community meeting footage, National Transportation Safety Board preliminary reports, and lots of articles from local and mainstream press, you will learn what Congress is being told as they write the Rail Safety Act, which both parts of Congress are working on in response to the East Palestine train derailment. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes East Palestine Derailment Overview Alisha Ebrahimji and Holly Yan. Mar 23, 2023. CNN. Associated Press. Feb 8, 2023. NPR. Feb 8, 2023. Cleveland 19 News. Vinyl Chloride and Dioxins Associated Press. Feb 8, 2023. CBS News Pittsburgh. Oct 4, 2016. World Health Organization. Last reviewed Oct 21, 2014. Centers for Disease Control Agency for Toxic Substances and Disease Registry. National Transportation Safety Board Findings Last updated Mar 21, 2023. National Transportation Safety Board. Ian Cross. Feb 14, 2023. ABC News 5 Cleveland. “Vent and Burn” Decision Jordan Chariton. May 25, 2023. Status Coup News. Tara Morgan. May 15, 2023. ABC News 5 Cleveland. Daniel Bates. May 15, 2023. The Daily Mail. EPA failures Louis DeAngelis. Mar 29, 2023. Status Coup News. East Palestine Resident Health Problems Zsuzsa Gyenes. May 16, 2023. The Guardian. Nicki Brown, Artemis Moshtaghian and Travis Caldwell. Mar 4, 2023. CNN. Tara Morgan. Apr 28, 2023. ABC News 5 Cleveland. Norfolk Southern Norfolk Southern. Andrea Cambron, Jason Carroll and Chris Isidore. May 11, 2023. CNN Business. Aaron Gordon. Feb 15, 2023. Vice. Rachel Premack. Feb 14, 2023. Freight Waves. Josh Funk. May 16, 2021. AP News. Lobbying Against Regulations David Sirota et al. Feb 8, 2023. The Lever. ECP Brake Deregulation William C. Vantuono. Dec 5, 2017. Railway Age. Railway Safety Act Abigail Bottar. May 10, 2023. Ideastream Public Media. Staffing Cuts Heather Long. Jan 3, 2020. The Washington Post. Long Trains Dan Schwartz and Topher Sanders. Apr 3, 2023. Propublica. Bills Audio Sources May 10, 2023 Senate Committee on Commerce, Science and Transportation Clips 36:30 Sen. JD Vance (R-OH): This bill has changed a lot from what I introduced just a few short months ago. We’ve made a number of concessions to industry; a number of concessions to the rail industry, a number of concessions to various interest groups, which is why we have so much bipartisan support in this body but also why we have a lot of support from industry. March 28, 2023 March 28, 2023 House Energy and Commerce Subcommittee on Environment, Manufacturing, & Critical Materials Witnesses: Debra Shore, Regional Administrator, U.S Environmental Protection Agency, Region 5 Wesley Vins, Health Commissioner, Columbiana County General Health District Anne M. Vogel, Director, Ohio Environmental Protection Agency Clips 30:40 Debra Shore: Since the derailment, EPA has been leading robust, multi-layered air quality testing, using state of the art technology in and around East Palestine, and that extensive monitoring has continued daily at 23 stations throughout the community. Since the fire was extinguished on February 8, EPA monitors have not detected any volatile organic compounds above established levels of health concerns. EPA has also been assisting with indoor air screenings in homes through a voluntary program to keep residents informed. As of March 21, more than 600 homes have been screened, and no sustained or elevated detections of chemicals have been identified. 33:00 Debra Shore: Here's how EPA is holding Norfolk Southern accountable. On February 21, EPA issued a Unilateral Administrative Order to Norfolk Southern, including a number of directives to identify and clean up contaminated soil and water resources, to attend and participate in public meetings at EPA's request, and to post information online, and ordering the company to pay EPA's costs for work performed under the order. All Norfolk Southern work plans must be reviewed and approved by EPA. It must outline all steps necessary to address the environmental damage caused by the derailment. If the company fails to complete any of the EPAs ordered actions, the agency will immediately step in, conduct the necessary work, and then seek punitive damages at up to three times the cost. 46:30 Rep. Bill Johnson (R-OH): In one case, trucks were actually turned around at the gate of a proper, certified disposal facility and sent back to East Palestine to sit practically in my constituents backyard. Why did the EPA believe that it needed to send those letters? Debra Shore: Chairman Johnson, the instance you cite occurred before EPA assumed responsibility under the Unilateral Administrative Order for the cleanup. We don't know who told those trucks to turn around, whether it was the disposal facility itself or someone else. 48:50 Rep. Bill Johnson (R-OH): Why were they turned around? Debra Shore: This occurred during the transition period between Ohio EPA and US EPA assuming the lead for the emergency response. As such, under the Unilateral Administrative Order, all disposal facilities are required to be on the CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) approved off-site disposal list. So, we needed a few days to review what had occurred and ensure that those facilities that Norfolk Southern had contracts with were on that approved list. Once we determined which ones were on the approved list, it's up to Norfolk Southern to ship waste off the site. 1:03:30 Rep. Diana DeGette (D-CO): Is the EPA intending to use the Unilateral Administrative Order to ensure that Norfolk Southern establishes a health and environmental screening program beyond this initial cleanup period? Debra Shore: Right now, the focus of the Unilateral Order and our work with Norfolk Southern is to make sure the site is cleaned up. I think the responsibility for that longer term health effort, I support what Dr. Vins recommended, and that may have to be negotiat[ed] with Norfolk Southern going forward. Rep. Diana DeGette (D-CO): Obviously, that hasn't started yet. Debra Shore: Not to my knowledge. 1:09:05 Rep. Buddy Carter (R-GA): What will take place in the remediation phase, what happens then? Debra Shore: Then there'll be restoration of stream banks and the places where the soil was removed from along the railroad sites and I think a larger vision for the community that they're already beginning to work on, such as parks and streetscapes. Rep. Buddy Carter (R-GA): Right. Any idea of what kind of timeframe we're talking about here? I mean, are we talking like in my district, decades? Debra Shore: No. We believe the core of the removal of the contaminated site and the restoration of the tracks will be several months. 1:11:35 Rep. Frank Pallone (D-NJ): When did clean up responsibility shift from EPA to Norfolk Southern, and what protections were put in place to ensure the health and safety of the community during that shift? Debra Shore: Thank you, Congressman Pallone. The transition from the State agency, which has the delegated authority in every state, has an emergency response capability, and so Ohio was on the ground working with the local firemen and other agencies as EPA arrived shortly after the derailment. It is typical in these kinds of emergency responses for the state agency to take the lead in the early days and Norfolk Southern was complying with the directives from the state. They continued to comply, but we've found over time that it's important to have all the authority to hold the principal responsible party in this case Norfolk Southern accountable, which is why on February 21, several weeks after the derailment, EPA issued its Unilateral Administrative Order. 1:19:55 Debra Shore: In the subsequent soil sampling that's been conducted, we looked at the information about the direction of the plume from the vent and burn event and focused that primarily where there might have been aerial deposition of soot or particulate matter, and that those soil samples have been collected in Pennsylvania. Rep. John Joyce (R-PA): And today, what soil, air, and water tests are continuing to occur in Pennsylvania? Debra Shore: Additional soil samples will be collected in collaboration, principally, with the Pennsylvania Department of Agriculture, the local Farm Bureau, and the Pennsylvania Department of Environmental Protection. 1:28:36 Anne M. Vogel: The reason that we have been able to say that the municipal drinking water is safe is based on an Ohio EPA map that pre-exists the derailment. This is the source water protection map. So the municipal wellfield is right here, if folks can see that, that big well in the blue. So the derailment happened way over here, a mile and a half away from the wellfield. And we know how the water flows, down this way, down this way, down the creeks. So the derailment would not have affected the municipal water source and we knew that very quickly after the derailment. 1:49:05 Debra Shore: Norfolk Southern has encountered some difficulties in finding and establishing contracts with sites to accept both liquid and solid waste. And I think we could accelerate the cleanup if they were able to fulfill that obligation more expeditiously. 1:51:20 Rep. Raul Ruiz (D-CA): What are some of the long term health concerns that residents and your providers have? Wesley Vins: We've heard a whole wide range of concerns long term. Certainly, cancer is first and foremost, because of much of the information that the residents see online and here, as well as reproductive concerns, growth concerns, hormonal concerns Rep. Raul Ruiz (D-CA): Do you think there's a potential with the carcinogens or any of the toxins that it could lead to ailments for five years from now? Wesley Vins: Yeah, I understand your question. So the some of the constituents that we have related to this response, obviously are carcinogenic, however, we're seeing low levels, is really the initial response. So I think the long question is, we don't know. Rep. Raul Ruiz (D-CA): We don't know. 2:04:50 Rep. Nanette Barragán (D-CA): Administrator Shore, one concern my office has heard is that relocation costs are not being covered by Norfolk Southern for everyone in East Palestine. How is it determined whether a resident is eligible to have their relocation costs paid for? Debra Shore: I'm sorry to hear that. My understanding was that Norfolk Southern was covering temporary relocation costs for any resident who sought that, and I would direct you to Norfolk Southern to ask why they are being turned down. Rep. Nanette Barragán (D-CA): Can the EPA require that Norfolk Southern cover relocation costs for anyone in East Palestine? Debra Shore: I'll find out. 2:11:45 Rep. Mariannette Miller-Meeks (R-IA): I guess my concern is, if the EPA is website says that the sampling data hasn't been quality assured, how did the EPA make the determination that the air is safe to breathe when it appears that the sampling data has not been quality assured? Debra Shore: Congresswoman, I'm going to ask our staff to get back to you with an answer for that. March 22, 2023 Senate Committee on Commerce, Science, & Transportation Introduction Panel: U.S. Senator Sherrod Brown U.S. Senator J.D. Vance Mike DeWine, Governor of Ohio Misti Allison, Resident of East Palestine Witnesses: Jennifer Homendy, Chair, National Transportation Safety Board David Comstock, Chief, Ohio Western Reserve Joint Fire District Clyde Whitaker, Legislative Director, Ohio State SMART-TD Alan Shaw, CEO, Norfolk Southern Ian Jefferies, CEO, Association of American Railroads Clips 1:35:00 Sen. Ted Cruz (R-TX): Is there any relief being offered now to say, if you make the decision to move your home and move your family somewhere else, there is an avenue for you to sell your home and get a fair market price for it? Misti Allison: The short answer is, as of today, no. There is not a clear cut explanation or parameters of how you would do that. We've heard time and time again from Norfolk Southern that they're going to make it right and that they're looking into some long term health care monitoring and assistance and home value protection, but details of that plan have not been disclosed to residents as of today. 1:42:05 Jennifer Homendy: This derailment, as all accidents we investigate, was 100% preventable. 1:43:20 Jennifer Homendy: First, the definition of high hazard flammable train should be expanded to a broader array of hazmats and the definition's threshold of 20 loaded tank cars in a continuous block or 35 tank cars dispersed throughout a train should be eliminated. Second, DOT 111 should be phased out of all hazmat service. They're not as protected as DOT 117 tank cars. Third, people deserve to know what chemicals are moving through their communities and how to stay safe in an emergency. That includes responders who risk their lives for each of us every single day. They deserve to be prepared. That means access to real time information, obtaining the right training and gear, and having the right communications and planning tools. Fourth, light cockpit voice recorders in the aviation, audio and video recorders in the locomotive cab are essential for helping investigators determine the cause of an accident and make more precise safety recommendations. Recorders also help operators proactively improve their safety policies and practices. In the East Palestine derailment, the locomotive was equipped with an inward facing camera. However, since the locomotive was put immediately back into service following the accident, the data was overwritten. That means the recorder only provided about 15 minutes of data before the derailment, and five minutes after. The FAST Act, following terrible tragedies in Chatsworth and in Philadelphia, required Amtrak and commuter railroads to maintain crash and fire hardened inward and outward facing image recorders in all controlling locomotives that have a minimum of a 12 hour continuous recording capability. This was extremely helpful in our DuPont Washington investigation. Now is the time to expand that requirement to audio, and include the Class One freight railroads in that mandate. In fact, now is the time to address all of the NTSB's open rail safety recommendations, many of which are on our most wanted list. Fifth and finally, as the committee works on enhancing rail safety, I trust that you'll consider the resources that we desperately need to carry out our critical safety mission. Investments in the NTSB are investments in safety across all modes of transportation. 1:52:05 Clyde Whitaker: This derailment did not have to happen. And it makes it so much more frustrating for us to know that it was very predictable. And yet our warnings and cries for help over the last seven years have fallen on deaf ears and the outcome was exactly as we feared. Now the result is a town that doesn't feel safe in their own homes, businesses failing to survive and a railroad that prioritized its own movement of trains, before the people in the community, as well as its workers. It truly is a shame that operational changes in place prior to that incident are still in place today and the possibility for a similar disaster is just as possible. My entire railroad career I've listened to the railroads portray a message and image of safety first, but I have never witnessed or experienced that truth, one single day on the property. For years I've handled complaint after complaint regarding unsafe practices and unsafe environments, and for almost every single one I've been fought every step of the way. The truth is, ask any railroad worker and they will tell you, that their carriers are masters of checking the boxes and saying the right things, without ever doing anything meaningful toward improving safety. They're only focus is on the operating ratios and bottom lines, which is evidenced by the fact that their bonus structures are set up to reward timely movements of freight rather than reaching destinations safely, as they once were. Actions do speak louder than words. And I assure you that what you have heard, and will hear, from the railroads today are nothing more than words. Their actions are what's experienced by men and women I represent as well as what the people of East Palestine have been through. This is the reality of what happens when railroads are primarily left to govern and regulate themselves. 1:54:05 Clyde Whitaker: On July 11, 2022, I filed a complaint with the FRA (Freight Railroad Administration) regarding an unsafe practice that was occurring on Norfolk Southern (NS), despite existing operating rules to the contrary. NS was giving instructions to crews to disregard wayside detector failures and to keep the trains moving. This meant the trains were not being inspected as intended, and that the crews were not able to ascertain the integrity of such trains. This practice remained in place even after East Palestine. 1:54:40 Clyde Whitaker: It is a virus that has plagued the industry for some time, with the exception of precision scheduled railroading. Across America, inspections and maintenance is being deferred to expedite the movement of trains. No longer is identifying defects and unsafe conditions the goal of inspections, but rather minimiz[ing] the time it takes to perform them, or the elimination of them all together. 2:17:40 Sen. Ted Cruz (R-TX): Why did Norfolk Southern not stop the train then and examine the bearing to make sure that it didn't melt the axle and that you didn't have a derailment? If you'd stop then it would have prevented the derailment. So my question is, why did the second hotbox reading not trigger action? Alan Shaw: Senator, my understanding is that that second reading was still below our alarm threshold, which is amongst the lowest in the industry. In response to this, the industry has agreed to work together to share best practices with respect to hotbox detectors, trending technology, and thresholds. Sen. Ted Cruz (R-TX): So when you and I visited my office yesterday, you said your threshold is now 170 degrees above ambient temperature. As I understand it, at the time of the derailment, your threshold was 200 degrees above ambient temperature. 2:20:15 Clyde Whitaker: Make note that trending defect detector technology from being in the cab of a locomotive, when we pass a defect detector, it trends to an office like Norfolk Southern in Atlanta, Georgia. It doesn't convey to the railroad crews, which is a problem in this incident as well as many others that still continue to this day. What we need as a train crew -- which they say they listen, they haven't been listening for quite a while -- we need to be notified whenever these trending detectors are seeing this car trend hotter. That way we can keep a better eye on it. 2:22:35 Clyde Whitaker: It is feasible. The technology is there. Several days after East Palestine, we almost had a similar incident in the Cleveland area on Norfolk Southern. The defect detector said no defects to the crew. The train dispatcher came on and said, "Hey, we have a report of a trending defect detector on the train. We need you to stop and inspect it." Immediately after that the chief dispatcher, which is the person that controls the whole railroad, told them to keep going. If it were not for an eastbound train passing them and instructing them, "Hey, your train is on fire, stop your train." And we set that car out. They had to walking speed this car five miles. So the technology is there. They're just raising and lowering their thresholds to move freight. 2:25:15 Sen. Ed Markey (D-MA): His testimony is loud and clear: it would have been worse if there was only one person as a crew on that train. Do you disagree with him? Alan Shaw: Senator, I believe that we have operations infrastructure on the ground to respond to derailments. Sen. Ed Markey (D-MA): I think you're not answering the question, okay? It's almost like the last hearing all over again. Because I think the evidence is very clear that these trains can be absolutely safer, but that technology is no replacement for human beings. For example, it can't provide the cognitive functions of a conductor and can't collect visual cues during an emergency. Two-person crews make our trains safer and I wish that you would commit to that today, because I think it's pretty obvious that is the correct answer. I just get sick of industry executives talking about supporting the principles of regulation, while they lobby against common sense regulations like this one behind the scenes. 2:38:50 Sen. Peter Welch (D-VT): I understand that the business plan of Norfolk Southern includes a $7.5 billion stock buyback that is ongoing. Do you believe it would be appropriate to suspend that buyback program until all of the assurances that you are making to this committee and also to the people of East Palestine, about "making this right," that that stock back buyback program should be suspended until you have accomplished what you've assured us and what you've assured that people of East Palestine that you would do? Alan Shaw: Senator, we think about safety every day. We spend a billion dollars a year in capital on safety. And we have ongoing expenses of about a billion dollars a year in safety and as a result over time, derailments are down, hazardous material releases are down and injuries are down. We can always get better. Sen. Peter Welch (D-VT): Right, so you won't answer my question about suspending the buyback program. Alan Shaw: Senator, stock buybacks never come at the expense of safety Sen. Peter Welch (D-VT): I take that is that you will continue with your plan on the buyback. 2:51:30 Sen. Shelley Moore Capito (R-WV): I know that high hazardous flammable trains have more safety regulations. Why would this not have been characterized as a high hazard flammable train if it had th ese hazardous materials on it as part of the 149 car train? Alan Shaw: Senator, thank you for your question. I'm not familiar with the entire makeup of the train. I know that a highly hazardous train is defined by a certain number of highly hazardous cars in it or a certain number of cars in a block. Sen. Shelley Moore Capito (R-WV): Miss Homendy, maybe you can help me with that question. Jennifer Homendy: Yes, the definition of a high hazard flammable train involves class three flammable liquids only, 20 car loads in a continuous block, which would be a unit train, or 35 car loads of class three flammable liquids in a mixed freight train. That was not what was on this train. There were some that were class three defined flammable liquids, but this train was not a high hazard flammable train. Sen. Shelley Moore Capito (R-WV): Right. It wasn't a high hazard train, but it had high hazardous materials that are very flammable that just lit up the sky. So is that something that you would consider that should be looked at as a safety improvement? Jennifer Homendy: Yes, Senator. We think that the thresholds of the 20 and 35 should be eliminated and we think a broader array of hazmat should be in the definition of high hazard flammable train. March 9, 2023 Senate Committee on Environment & Public Works Witnesses: Sen. Sherrod Brown (D-OH) Sen. JD Vance (R-OH) Sen. Bob Casey (D-PA) Alan Shaw, President and CEO, Norfolk Southern Corporation Debra Shore, Regional Administrator, U.S. Environmental Protection Agency, Region V Anne Vogel, Director, Ohio Environmental Protection Agency Richard Harrison, Executive Director and Chief Engineer, Ohio River Valley Water Sanitation Commission Eric Brewer, Director and Chief of Hazardous Materials Response, Beaver County Department of Emergency Services Clips 26:50 Sen. Sherrod Brown (D-OH): The company followed the Wall Street business model: boost profits by cutting costs at all costs, the consequences for places like East Palestine be damned. In 10 years, Norfolk Southern eliminated 38% of its workforce. Think of that. In a decade they cut more than a third of their jobs. We see what the company did with their massive profits. Norfolk Southern spent $3.4 billion on stock buybacks last year and were planning to do even more this year. That's money that could have gone to hiring inspectors, to putting more hotbox detectors along its rail lines, to having more workers available to repair cars and repair tracks. Norfolk Southern's profits have gone up and up and up and look what happened. 33:35 Sen. JD Vance (R-OH): It is ridiculous that firefighters and local officials don't know that hazardous chemicals are in their community, coming through their community. In East Palestine you had a community of largely volunteer firefighters responding to a terrible crisis, toxic burning chemicals, without knowing what was on them. 34:50 Sen. JD Vance (R-OH): I've talked to a number of my Republican colleagues and nearly everybody has dealt in complete good faith, whether they like the bill or have some concerns about it, and these comments are not directed at them. Who they are directed at is a particular slice of people who seem to think that any public safety enhancements for the rail industry is somehow a violation of the free market. Well, if you look at this industry and what's happened in the last 30 years, that argument is a farce. This is an industry that enjoys special subsidies that almost no industry enjoys. This is an industry that is enjoys special legal carve outs that almost no industry enjoys. This is an industry that just three months ago had the federal government come in and save them from a labor dispute. It was effectively a bailout. And now they're claiming before the Senate and the House that our reasonable legislation is somehow a violation of the free market. Well, pot, meet the kettle, because that doesn't make an ounce of sense. You cannot claim special government privileges, you cannot ask the government to bail you out, and then resist basic public safety. 40:10 Alan Shaw: Air and water monitoring have been in place continuously since the accident and to date it consistently indicated that the air is safe to breathe and the water is safe to drink. 47:20 Debra Shore: Since the fire was extinguished on February 8, EPA monitors have not detected any volatile organic compounds above levels of health concerns. 47:45 Debra Shore: EPA has been assisting with indoor air screenings for homes through a voluntary program offered to residents to provide them with information and help restore their peace of mind. As of March 4, approximately 600 homes had been screened through this program and no detections of vinyl chloride or hydrogen chloride have been identified. 48:40 Debra Shore: On February 21, we issued a unilateral administrative order to Norfolk Southern which includes a number of directives to identify and clean up contaminated soil and water resources, to attend and participate in public meetings at EPA's request, and to post information online, to pay for EPA's costs for work performed under this order. EPA is overseeing Norfolk Southern's cleanup work to ensure it's done to EPA specifications. The work plans will outline all steps necessary to clean up the environmental damage caused by the derailment. And most importantly, if the company fails to complete any of the EPA ordered actions, the agency will immediately step in, conduct the necessary work, and then force Norfolk Southern to pay triple the cost. 1:04:30 Eric Brewer: Norfolk Southern hazmat personnel and contractors arrived on scene shortly after 11pm. At around midnight, after research of the contents, it was decided to shut down fire operations and move firefighters out of the immediate area and to let the tank cars burn. This is not an unusual decision. This decision was made primarily by Norfolk Southern's hazmat coordinator, as well as their contractor. 1:05:15 Eric Brewer: There was a possibility of explosion and we should consider a one mile evacuation. Ohio officials notified us that the one mile radius would now be from the leaked oil address. This would add additional residents from Beaver County in the one mile evacuation zone. Donington township officials went door to door, as well as using a mass notification system to advise the residents of the one mile recommended evacuation. It was stressed that this was a recommendation as we cannot force residents from their homes. Social media posts began to circulate stating that arrest would be made if people refused to leave during the evacuation. Let me be clear that was not the case in Pennsylvania, as this was not a mandatory evacuation. Monday morning, we assembled at the Emergency Operations Center in East Palestine. We learned Norfolk Southern wanted to do a controlled detonation of the tank car in question. We were assured this was the safest way to mitigate the problem. During one of those planning meetings, we learned from Norfolk Southern that they now wanted to do the controlled detonation on five of the tank cars rather than just the one. This changed the entire plan, as it would now impact a much larger area. 1:21:25 Sen. Shelley Moore Capito (R-WV): Why did you wait a month before you started to order the dioxin testing when the community was asking for this? Was that a decision that you made early on that it wasn't critical? Or how was this decision made? Debra Shore: Senator Capito, our air monitoring was searching for primary indicators, such as phosgene and hydrogen chloride, immediately during and after the burn. We detected very low levels which very quickly went even down to non detectable. Without those primary indicators, it was a very low probability that dioxins would have been created. They are secondary byproducts of the burning of vinyl chloride. 1:25:40 Alan Shaw: As you saw just this week, a six point safety plan that included a number of issues which we're implementing immediately to improve safety, including installing more wayside detectors. The first one was installed yesterday outside of East Palestine. 1:30:20 Sen. Markwayne Mullin (R-OK): Mr. Shaw, when the vent and burn process was being made, who who made those decisions? And what was other considerations other than just burning it and letting the material burn off? Alan Shaw: Thank you for that question. The only consideration, Senator, was the safety and health of the community. And that decision was made by Unified Command under the direction of the Incident Commander? Sen. Markwayne Mullin (R-OK): Who's that? Alan Shaw: The Incident Commander was Fire Chief Drabick. Norfolk Southern was a part of Unified Command. 2:07:25 Alan Shaw: Senator, the NTSB report indicated that all of the hotbox detectors were working as designed. And earlier this week, we announced that we are adding approximately 200 hotbox detectors to our network. We already have amongst the lowest spacing between hotbox detectors in the industry. And we already have amongst the lowest thresholds. 2:15:35 Sen. Ed Markey (D-MA): Will you commit to compensating affected homeowners for their diminished property values? Alan Shaw: Senator, I'm committing to do what's right. Sen. Ed Markey (D-MA): Well, what's right is a family that had a home worth $100,000 that is now worth $50,000 will probably never be able to sell that home for 100,000 again. Will you compensate that family for that loss? Alan Shaw: Senator, I'm committed to do what's right. Sen. Ed Markey (D-MA): That is the right thing to do. These are the people who are innocent victims, Mr. Shaw. These people were just there at home and all of a sudden their small businesses, their homes are forever going to have been diminished in value. Norfolk Southern owes these people. It's an accident that is basically under the responsibility of Norfolk Southern, not these families. When you say do the right thing, will you again, compensate these families for their diminished lost property value for homes and small businesses? Alan Shaw: Senator, we've already committed $21 million and that's a downpayment Sen. Ed Markey (D-MA): That is a down payment. Will you commit to ensuring that these families, these innocent families, do not lose their life savings in their homes and small businesses? The right thing to do is to say, "Yes, we will." Alan Shaw: Senator, I'm committed to doing what's right for the community and we're going to be there as long -- Sen. Ed Markey (D-MA): What's right for the community will then be balanced -- which is what we can see from your stock buybacks -- by what's right for Norfolk Southern. March 6, 2023 Speakers: Heather Long, Columnist and Editorial Writer, Washington Post Jennifer Homendy, Chair, National Transportation Safety Board Clips 5:14 Jennifer Homendy: Hazardous materials are transported on all modes of transportation. Our aviation system is the safest, but they're limited in what they can transport for dangerous materials. Pipelines can also be safe as well. They have a generally good safety record until one big rupture occurs. But then our railroads also have a good safety record. Train accidents in general, per million trains miles, are going up. So it's trending upwards, accidents. With that said, going on our nation's roads with these materials is not something we want to see. You know, we have 43,000 people that are dying on our nation's roads annually. We have a public health crisis on our roads. Millions of crashes are occurring, so transporting hazmat on our roads would be more dangerous than on our railways. 6:50 Jennifer Homendy: The numbers are trending upward on accidents overall and also for Norfolk Southern 8:20 Jennifer Homendy: That is a role that's very important for the NTSB and why we are independent of the Department of Transportation. We are not part of the Department of Transportation because we do conduct federal oversight to see if DoT's oversight of the freight railroads is adequate or inadequate and we may make recommendations on that. 10:20 Jennifer Homendy: Once it hit well over 250 degrees, it was time for the train crew to stop to inspect the axle, to inspect the wheel bearing and to possibly, in this case, set out the car. But it was too late because as they were slowing and stopping, the train derailed, the wheel bearing failed. And so there might need to be more conservative temperature thresholdss o that started earlier. Also, something the Transportation Safety Board of Canada has looked at is real time monitoring of temperatures and data trending from the control center so that they can see the temperatures increase over a period of time. In this derailment, or what we saw of this train and its operations, is the temperature of that wheel bearing was going up pretty significantly over the course of the three different wayside detectors, but you know, the crew doesn't see that. So that real time monitoring and data trending so that there's some communication with the crew to stop the train and take immediate action is definitely needed. We'll look at that as part of our investigation as well. 12:30 Jennifer Homendy: One thing I will mention is that these decisions about the placement of these hot bearing detectors and the thresholds really vary railroad by railroad and so there needs to be good decision making, some policies and practices put in place. 18:00 Jennifer Homendy: Electronically controlled pneumatic (ECP) brakes don't prevent a derailment. It could lessen damage. So let me explain that. So in this one, car 23 still would have derailed because a wheel bearing failed. So car 23 still would have derailed. Still would have been a derailment, still would have been a fire, and the responders, and Norfolk Southern, and the state and locals would have had to still make a decision on whether to vent and burn the five vinyl chloride tank cars. There could have been a possibility of less damage, meaning a few cars could have remained on the track later in the train. But as for most of the damage, that still would have occurred whether we had ECP brakes on this train or not. 19:50 Heather Long: There's a lot fewer people working on rail, especially freight rail. Does the number of people make any difference here? Jennifer Homendy: Well for this one, as you said, we had two crew members and a trainee. They all stay, as with every train, in the cab of the head locomotive. So I do not see where that would have made a difference in this particular train and this derailment. One thing we are going to look at is whether any changes in staffing lead to any differences in how these cars are maintained or how they're inspected. That is something we will look at. 21:05 Jennifer Homendy: Yeah, so the fire chief, upon arrival at the command center following the derailment, had electronic access to the train consist, which is the list of cars and the materials or liquids that the train is carrying, but none of the responders had the Ask Rail app. You could look up a UN number for a particular car and get the whole consist of the train. It's in an app that the railroads developed for helping emergency responders to get information following an accident. 25:05 Jennifer Homendy: And we have over 250 recommendations that we've issued on rail safety generally that have not been acted upon yet. Music by Editing Production Assistance
For this episode, Jen sat down for an interview with fellow Congress nerd Dr. Maya Kornberg. Dr. Kornberg is a Research Fellow for the Brennan Center for Justice's Elections and Government Program and author of Inside Congressional Committees: Function and Dysfunction in the Legislative Process. They talk about how and why the power of committees has shifted over time, how witnesses are selected for hearings, why the hearing archives disappeared, resources for information that Congress has that we don’t have access to, and where we can find hope for improvements in terms of how Congress functions. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Relevant Links Brennan Center for Justice. House Natural Resources Committee. Music Presented in This Episode by
Taiwan’s status in the world has never been clear and neither has the United States’ position on the issue. In this Congressional Dish, via footage from the C-SPAN archive dating back into the 1960s, we examine the history of Taiwan since World War II in order to see the dramatic shift in Taiwan policy that is happening in Congress - and in law - right now. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Taiwan History and Background Susan V. Lawrence and Caitlin Campbell. Updated Mar 31, 2023. Congressional Research Service. Erin Hale. Oct 25, 2021. Aljazeera. Stacy Chen. Jan 16, 2020. ABC News. Randy Mulyanto. Sep 26, 2019. Aljazeera. U.S.-Taiwan Relationship Past Cornell Law School Legal Information Institute. Current Rupert Wingfield-Hayes. Apr 6, 2023. BBC News. Jude Blanchette et al. Aug 15, 2022. Center for Strategic and International Studies. Aug 4, 2022. DW News. News Wires. Feb 8, 2022. France 24. Dheepthika Laurent. Feb 8, 2022. France 24. Presidential Drawdown Authority Apr 19, 2023. U.S. Department of State Bureau of Political-Military Affairs. U.S. China Relationship Thomas L. Friedman. Apr 14, 2023. The New York Times. Laws Outline of Taiwan Provisions By the end of 2023, the Secretary of Defense is to assess the viability of our domestic critical infrastructure to identify chokepoints and the ability of our armed forces to respond to a contingency involving Taiwan, including our armed forces’ ability to respond to attacks on our infrastructure. “It shall be the policy of the United States to maintain the capacity of the United States to resist a fait accompli that would jeopardize the security of thepeople of Taiwan.” Fait accompli is defined as, “the resort to force by the People’s Republic of China to invade and seize control of Taiwan before the United States can respond effectively.” Congress wants the Commander of the United States Indo-Pacific Command to carry out joint military exercises with Taiwan in “multiple warfare domains” and practice using “secure communications between the forces of the United States, Taiwan, and other foreign partners” Taiwan should be invited to participate in the Rim of the Pacific (RIMPAC) exercise in 2024. RIMPAC is a multinational maritime exercise, now the world’s largest, that has happened 28 times since 1971. The last one took place in and around Hawaii and Southern California in the summer of 2022. 26 countries, including the US, participated. PART 1 - IMPLEMENTATION OF AN ENHANCED DEFENSE PARTNERSHIP BETWEEN THE UNITED STATES AND TAIWAN Grants: Expands the purpose of the State Department’s Foreign Military Financing Program to “provide assistance including equipment, training, and other support, to build the civilian and defensive military capabilities of Taiwan” Authorizes the State Department to spend up to $100 million per year for 10 years to maintain a stockpile of munitions and other weapons (authorized by ). Any amounts that are not obligated and used in one year can be carried over into the next year (which essentially makes this a $1 billion authorization that expires in 2032). The stockpile money is only authorized if the State Department certifies every year that Taiwan has increased its defense spending (requirement is easily waived by the Secretary of State). Authorizes $2 billion per year for the Foreign Military Financing grants each year for the next 5 years (total $10 billion in grants). The money is expressly allowed to be used to purchase weapons and “defense services” that are “not sold by the United States Government” (= sold by the private sector). No more than 15% of the weapons for Taiwan purchased via the Foreign Military Financing Program can be purchased from within Taiwan Loans: Also authorizes the Secretary of State to directly loan Taiwan up to $2 billion. The loans must be paid back within 12 years and must include interest. The Secretary of State is also authorized to guarantee commercial loans up to$2 billion each (which can not be used to pay off other debts). Loans guaranteed by the US must be paid back in 12 years. Requires the Secretary of State and Secretary of Defense to create a military training program with Taiwan by authorizing the Secretary of State to train Taiwan through the International Military Education and Training Program. The purposes of the training include enhancements of interoperability between the US and Taiwan and the training of “future leaders of Taiwan”. The training itself can include “full scale military exercises” and “an enduring rotational United States military presence” Authorizes the President to drawdown weapons from the stocks of the Defense Department, use Defense Department services, and provide military education and training to Taiwan, the value of which will be capped at $1 billion per year The President is also given the “emergency authority” to transfer weapons and services in “immediate assistance” to Taiwan specifically valued at up to $25 million per fiscal year. “The Taiwan Relations Act and the Six Assurances provided by the United States to Taiwan in July 1982 are the foundation for United States-Taiwan relations.” “The increasingly coercive and aggressive behavior of the People’s Republic of China toward Taiwan is contrary to the expectation of the peaceful resolution of the future of Taiwan” “As set forth in the Taiwan Relations Act, the capacity to resist any resort to force or other forms of coercion that would jeopardize the security, or the social or economic system, of the people on Taiwan should be maintained.” The US should continue to support Taiwanese defense forces by “supporting acquisition by Taiwan of defense articles and services through foreign military sales, direct commercial sales, and industrial cooperation, with an emphasis on capabilities that support an asymmetric strategy.” Support should also include “Exchanges between defense officials and officers of the US and Taiwan at the strategic, policy, and functional levels, consistent with the Taiwan Travel Act.” PART 3 - INCLUSION OF TAIWAN IN INTERNATIONAL ORGANIZATIONS “Since 2016, the Gambia, Sao Tome and Principe, Panama, the Dominican Republic, Burkina Faso, El Salvador, the Solomon Islands, and Kiribati, have severed diplomatic relations with Taiwan in favor of diplomatic relations with China” “Taiwan was invited to participate in the World Health Assembly, the decision making body of the World Health Organization, as an observer annually between 2009 and 2016. Since the 2016 election of President Tsai, the PRC has increasingly resisted Taiwan’s participation in the WHA. Taiwan was not invited to attend the WHA in 2017, 2018, 2019, 2020, or 2021.” “United Nations General Assembly Resolution 2758 does not address the issue of representation of Taiwan and its people at the United Nations, nor does it give the PRC the right to represent the people of Taiwan.” By the end of Summer 2023, the Secretary of State must create a classified strategy for getting Taiwan included in 20 international organizations. The strategy will be a response to “growing pressure from the PRC on foreign governments, international organizations, commercial actors, and civil society organizations to comply with its ‘One-China Principle’ with respect to Taiwan.” PART 4 - MISCELLANEOUS PROVISIONS “Taiwan is now the United States 10th largest goods trading partner, 13th largest export market, 13th largest source of imports, and a key destination for United States agricultural exports.” Audio Sources February 9, 2023 Senate Foreign Relations Committee Witnesses: Wendy Sherman, Deputy Secretary of State, U.S. Department of State Ely Ratner, Assistant Secretary of Defense for Indo-Pacific Security Affairs, U.S. Department of Defense Clips 17:40 Wendy Sherman: We remain committed to our long standing One China Policy and oppose any unilateral changes to the cross-strait status quo. Our policy has not changed. What has changed is Beijing's growing coercion. So we will keep assisting Taiwan in maintaining a sufficient self-defense capability. 41:30 Sen. Marco Rubio (R-FL): I want to get a little broader because I think it's important to understand sort of the strategic vision behind our tactics on everything that we do. So if we go back to the late 80s, early 90s, end of the Cold War, and the gamble at the time was, if we created this international economic order, led by the US and the West, built on this global commitment to free trade, that this notion of that this trade and commerce would bind nations together via trade, via commerce and international interest and economic interest, that it would lead to more wealth and prosperity, that it would lead to democracy and freedom, basically domestic changes in many countries, and that it would ultimately ensure peace. The famous saying now seems silly, that no two countries with McDonald's have ever gone to war. That's obviously no longer the case. But the point being is that was the notion behind it. It was what the then Director General of the WTO called a "world without walls," rules-based international order. Others call it globalization. And basically, our foreign policy has been built around that, even though it's an economic theory it basically, is what we have built our foreign policy on. I think it's now fair to say that we admitted China to the World Trade Organization, Russia as well, I think it's now fair to say that while wealth certainly increased, particularly in China through its export driven economy, massive, historic, unprecedented amount of economic growth in that regard, I don't think we can say either China or Russia are more democratic. In fact, they're more autocratic. I don't think we can say that they're more peaceful. Russia has invaded Ukraine now twice, and the Chinese are conducting live fire drills off the coast of Taiwan. So I think it's fair to say that gamble failed. And we have now to enter -- and I think the President actually hinted at some of that in his speech the other night -- we're now entering a new era. What is that new era? What is our vision now for that world, in which not just the global international order and World Without Walls did not pacify or buy nations, but in fact, have now placed us into situations where autocracies, through a joint communique, are openly signaling that we need to reject Western visions of democracy and the like. So, before we can talk about what we're going to do, we have to understand what our strategic vision is. What is the strategic vision of this administration on what the new order of the world is? February 7, 2023 House Armed Services Committee, Subcommittee on Cyber, Information Technologies, and Innovation Witnesses: Chris Brose, Author Senior Director, Center on Cyber and Technology Innovation, Foundation for Defense of Democracies Peter Singer, Strategist at New America and Managing Partner of Useful Fiction LLC Clips 1:16:30 Rear Adm. Mark Montgomery: We don't have weapons stowed in Taiwan. In the last National Defense Authorization Act you authorized up to $300 million a year to be appropriated for Taiwan-specific munitions. The appropriators, which happened about seven days later, appropriated $0. In fact, almost all of the Taiwan Enhanced Resilience Act, which you all pushed through the NDAA, ended up not being appropriated in the Consolidated Appropriations Act that passed eight days later. 30:10 Chris Brose: Nothing you do in this Congress will make larger numbers of traditional ships, aircraft and other platforms materialized over the next several years. It is possible, however, to generate an arsenal of alternative military capabilities that could be delivered to U.S. forces in large enough quantities within the next few years to make a decisive difference. Those decisions could all be taken by this Congress. The goal would be to rapidly field what I have referred to as a "moneyball military," one that is achievable, affordable and capable of winning. Such a military would be composed not of small quantities of large, exquisite, expensive things, but rather by large quantities of smaller, lower cost, more autonomous consumable things, and most importantly, the digital means of integrating them. These kinds of alternative capabilities exist now, or could be rapidly matured and fielded in massive quantities within the window of maximum danger. You could set this in motion in the next two years. The goal would be more about defense than offense, more about countering power projection than projecting power ourselves. It would be to demonstrate that the United States, together with our allies and partners, could do to a Chinese invasion or a Chinese offensive what the Ukrainians, with our support, have thus far been able to do to their Russian invaders: degrade and deny the ability of a great power to accomplish its objectives through violence, and in so doing to prevent that future war from ever happening. After all, this is all about deterrence. All of this is possible. We have sufficient money, technology, authorities, and we still have enough time. If we are serious, if we make better decisions now, we can push this looming period of vulnerability further into the future. February 7, 2023 House Armed Services Committee Witnesses: Admiral Harry B. Harris Jr., USN (Ret.), Former Commander, U.S. Pacific Command Foreign Policy Fellow, Strobe Talbott Center for Security, Strategy, and Technology Clips 28:15 Rep. Mike Rogers (R-AL): China is the most challenging national security threat America has faced in 30 years. If we fail to acknowledge that and take immediate action to deter it, the next 30 years could be devastating for our nation. Under President Xi, the Chinese Communist Party has nearly tripled its defense spending in the last decade alone. The PLA has gone from an obsolete force barely capable of defending its borders to a modern fighting force capable of winning regional conflicts. The CCP now controls the largest army and navy in the world, with a goal of having them fully integrated and modernized by 2027. The CCP is rapidly expanding its nuclear capability; they have doubled their number of warheads in two years. We estimated it would take them a decade to do that. We also were just informed by the DOD [that] the CCP now has more ICBM launchers than the United States. The CCP is starting to outpace us on new battlefields as well. They have leapfrogged us on hypersonic technology, they are fielding what we are still developing. They are making advances in AI and quantum computing that we struggle to keep pace with. Finally, their rapid advances in space were one of the primary motivations for us establishing a Space Force. The CCP is not building these new and advanced military capabilities for self defense. In recent years, the CCP has used its military to push out its borders, to threaten our allies in the region, and to gain footholds on new continents. In violation of international law, the CCP has built new and commandeered existing islands in the South China Sea, where it has deployed stealth fighters, bombers and missiles. It continues to intimidate and coerce Taiwan, most recently by surrounding the island with naval forces and launching endless fighter sorties across its centerline. In recent years, the CCP has also established a space tracking facility in South America to monitor U.S, satellites, as well as an overseas naval base miles from our own on the strategically vital Horn of Africa. These are just a few destabilizing actions taken by the CCP. They speak nothing of the CCPs Belt and Road debt trap diplomacy, it's illegal harvesting of personal data and intellectual property, it's ongoing human rights abuses, and its advanced espionage efforts, the latter of which came into full focus for all Americans last week when the Biden administration allowed a CCP spy balloon to traverse some of our nation's most sensitive military sites. Make no mistake, that balloon was intentionally lost as a calculated show of force. 44:15 Dr. Melanie W. Sisson: Since 1979, the United States has adopted a constellation of official positions, together known as the One China policy, that allow us to acknowledge but not to accept China's perspective that there is one China and that Taiwan is part of China. Under the One China policy, the United States has developed robust unofficial relations with the government and people of Taiwan consistent with our interest in preserving peace and stability in the Taiwan Strait. US policy is guided by an interest in ensuring cross-strait disputes are resolved peacefully and in a manner that reflects the will of Taiwan's people. This has required the United States to deter Taiwan from declaring independence, and also to deter the CCP from attempting unification by force. The 40 year success of the strategy of dual deterrence rests upon the unwillingness of the United States to provide either an unconditional commitment to Taipei that it will come to its defense militarily, or an unconditional commitment to Beijing that we will not. The U.S. national security interest in the status of Taiwan remains that the CCP and the people of Taiwan resolve the island's political status peacefully. Dual deterrence therefore remains U.S. strategy, reinforced by U.S. declaratory policy which is to oppose unilateral changes to the status quo by either side. 45:28 Dr. Melanie W. Sisson: The modernization of the PLA has changed the regional military balance and significantly enough that the United States no longer can be confident that we would decisively defeat every type of PLA use of force in the Taiwan Strait. This fact, however, does not necessitate that the US abandon the strategy of dual deterrence and it doesn't mean that the United States should seek to reconstitute its prior degree of dominance. Posturing the U.S. military to convince the CCP that the PLA could not succeed in any and every contingency over Taiwan is infeasible in the near term and likely beyond. The PLA is advances are considerable and ongoing, geography works in its favor, and history demonstrates that it's far easier to arrive at an overconfident assessment of relative capability than it is to arrive at an accurate one. Attempting to demonstrate superiority for all contingencies would require a commitment of forces that would inhibit the United States from behaving like the global power that it is with global interests to which its military must also attend. This posture, moreover, is not necessary for dual deterrence to extend its 40 year record of success. We can instead encourage the government of Taiwan to adopt a defense concept that forces the PLA into sub-optimal strategies and increases the battle damage Beijing would have to anticipate and accept. 46:45 Dr. Melanie W. Sisson: U.S. military superiority in the Persian Gulf and Indian Ocean allows us to threaten the maritime shipping upon which China depends for access to energy, global markets, and supply chains. The inevitable damage a use of force would cause to the global economy and the imposition of sanctions and restricted access to critical inputs needed to sustain China's economic development and the quality of life of its people, moreover, would certainly compound China's losses. 1:04:50 Adm. Harry B. Harris: We're going to share the crown jewel of America's military technology, the nuclear submarine and the nuclear reactors, with another country and that's Australia. We have not done that with any other country, except for the UK, back in the late 50s, and into the 60s. So here we have the two countries with with that capability, the United States and the UK, and we're going to share that with Australia. It's significant. But it's only going to going to be significant over the long term if we follow through. So it's a decade long process. You know, some people the CNO, Chief of Naval Operations, has said it could be 30 years before we see an Australian nuclear submarine underway in the Indian Ocean. I said that if we put our hearts and minds to it, and our resources to it, and by ours, I mean the United States', the UK's and Australia's, we can do this faster than that. I mean we put a man on the moon and eight years, and we developed a COVID vaccine in one year. We can do this, but we're going to have to put our shoulders to the task for Australia, which has a tremendous military. For them to have the long reach of a nuclear submarine force would be dramatic. It would help us dramatically. It would change the balance of power in the Indian Ocean, and it will make Australia a Bluewater navy. They are our key ally in that part of the world and I'm all for it. 1:32:05 Adm. Harry B. Harris: I think this issue of strategic clarity versus strategic ambiguity is critical, and we have been well served, I'll be the first to say that, by the policy of strategic ambiguity with Taiwan over the past 44 years, but I think the time for ambiguity is over. I think we have to be as clear about our intent with regard to what would happen if the PRC invades Taiwan as the PRC is clear in its intent that it's ultimately going to seize Taiwan if need. 1:41:25 Adm. Harry B. Harris: I used to talk about during the Cold War with the Soviet Union, almost every branch of the U.S. government understood that the Soviet Union was the threat. You know, I used to joke even a park ranger, Smokey Bear, would tell you that the Soviets were the bad guys. We didn't have that comprehensive unified view of the PRC. You know, State Department looked at as in negotiation, DOD look at it as a military operation, Commerce looked at it as a trading partner, and Treasury looked at it as a lender. So we didn't have this unified view across the government. But I think now we are getting to that unified view and I think the Congress has done a lot to get us in that position. 1:49:45 Rep. Matt Gaetz (R-FL): We have the capability to block the transmission of information from the balloon back to China, don't we? Adm. Harry B. Harris Jr.: We do. Rep. Matt Gaetz (R-FL): And in this type of an environment do you think it's probably likely that we did that? Adm. Harry B. Harris Jr.: I would only guess, but I think General van Herk said that -- Rep. Matt Gaetz (R-FL): Well you can't see any reason why we wouldn't do that, right? March 14, 2014 House Foreign Affairs Committee Witnesses: Kin Moy, [Former] Deputy Assistant Secretary for East Asian and Pacific Affairs, U.S. Department of State Clips 7:20 [Former] Rep. Eliot Engel (D-NY): Taiwan is a flourishing multiparty democracy of over 20 million people with a vibrant free market economy. It is a leading trade partner of the United States alongside much bigger countries like Brazil and India. Over the past 60 years, the U.S.-Taiwan relationship has undergone dramatic changes, but Taiwan's development into a robust and lively democracy underpins the strong U.S.-Taiwan friendship we enjoy today. 14:00 Rep. Brad Sherman (D-CA): I think that it's important that we provide Taiwan the tools to defend itself, but Taiwan needs to act as well. Taiwan spends less than $11 billion on its defense, less than 1/5 per capita what we in America do, and God blessed us with the Pacific Ocean separating us from China. Taiwan has only the Taiwan Strait. On a percentage of GDP basis, Taiwan spends roughly half what we do. So we should be willing to sell them the tools and they should be willing to spend the money to buy those tools. 1:11:50 Rep. Randy Weber (R-TX): I think Chris Smith raised the issue of a One China policy. Does it not bother you that that exists, that there are statements that people have made, high level officials, that said they they agreed on one China policy? Does the administration not view that as a problem? Kin Moy: Our one China policy is one that has existed for several decades now. Rep. Randy Weber (R-TX): Okay. Well, I take that as a no, but let me follow up with what Jerry Connolly said. So you haven't sold submarines yet, you don't take Beijing into account. People around the world watch us. Words and actions have consequences. Would you agree that y'all would be okay with a one Russia policy when it comes to Crimea and the Ukraine? Is that akin to the same kind of ideology? Kin Moy: Well, I can't speak to those issues. But again, we are obligated to provide those defense materials and services to Taiwan and we have been through several administrations, I think very vigilant in terms of providing that. May 15, 2008 Senate Foreign Relations Committee Witnesses: Richard N. Haass, President, Council on Foreign Relations Harry Harding, Professor of International Affairs, George Washington University, 1995-2009 Clips 1:46:42 Richard N. Haass: The bottom line is China is not yet a military competitor, much less a military peer. Interestingly, I think Chinese leaders understand this. And they understand just how much their country requires decades of external stability so that they can continue to focus their energies and their attention on economic growth and political evolution. China is an emerging country, but in no way is it a revolutionary threat to world order as we know it. 1:47:20 Richard N. Haass: We alone cannot bring about a successful us Chinese relationship. What the Chinese do and say will count just as much. They will need to begin to exercise restraint and patience on Taiwan. There can be no shortcuts, no use of force. We, at the same time, must meet our obligations to assist Taiwan with its defense. We can also help by discouraging statements and actions by Taiwan's leaders that would be viewed as provocative or worse. 2:03:47 Harry Harding: Now with the support and encouragement of the United States, China has now become a member of virtually all the international regimes for which it is qualified. And therefore the process of integration is basically over, not entirely, but it's largely completed. And so the issue, as Bob Zoellick rightly suggested, is no longer securing China's membership, but encouraging it to be something more, what he called a "responsible stakeholder." So this means not only honoring the rules and norms of the system, but also enforcing them when others violate them, and assisting those who wish to join the system but who lack the capacity to do so. It means, in other words, not simply passive membership, but active participation. It means accepting the burdens and responsibilities of being a major power with a stake in international peace and stability, rather than simply being a free rider on the efforts of others. Now, China's reacted to the concept of responsible stakeholding with some ambivalence. On the one hand, it appreciates that the United States is thereby seeking a positive relationship with China. It suggests that we can accept and even welcome the rise of Chinese power and Beijing's growing role in the world. It certainly is seen by the Chinese as preferable to the Bush administration's earlier idea that China would be a strategic competitor of the United States, as was expressed during the campaign of 2000 and in the early months of 2001. However, Beijing also perceives, largely correctly, that America's more accommodative posture as expressed in this concept is conditional. China will be expected to honor international norms and respect international organizations that it did not create and it may sometimes question. And even more worrying from Beijing's perspective is the prospect that it's the United States that is reserving the right to be the judge as to whether Chinese behavior on particular issues is sufficiently responsible or not. August 4, 1999 Senate Foreign Relations Committee Witnesses: David “Mike” M. Lampton, Founding Director, Chinese Studies Program, Nixon Center Stanley Roth, Assistant Secretary, East Asian and Pacific Affairs, U.S. Department of State Caspar W. Weinberger, Former Secretary, Department of Defense James Woolsey, Former Director, CIA Clips 9:00 Sen. Joe Biden (D-DE): Taiwan security, in my view, flows from its democratic form of government's growing economic, cultural and political contacts with the mainland and, ultimately, the United States' abiding commitment to a peaceful resolution of the Taiwan question. In my opinion, we should concentrate on strengthening those areas rather than spend time pre-authorizing the sales of weapon systems, some of which don't even exist yet. 20:10 Stanley Roth: There are three pillars of the [Clinton] administration's policy. First, the administration's commitment to a One China policy is unchanged. Regardless of the position of the parties, we have not changed our policy. The President has said that both publicly and privately. Second, we believe that the best means to resolve these issues is by direct dialogue between the parties themselves. We have taken every opportunity, including on my own trip to Beijing last week with Ken Lieberthal from the NSC, to urge the PRC to continue this dialogue. It strikes us that it's precisely when times are difficult that you need to dialogue, and to cancel it because of disagreements would be a mistake. China has not yet indicated whether or not these talks will continue in the Fall, as had been previously anticipated, but they put out a lot of hints suggesting that it wouldn't take place, and we are urging them to continue with this dialogue. Third point that is integral to our position. We have stressed again, at every opportunity, the importance of a peaceful resolution of this issue and the President has made that absolutely clear, as did Secretary Albright in her meeting with Chinese Foreign Minister Tong in Singapore last week, as did Ken Leiberthal and I in our meetings in Beijing. But China can have no doubts about what the United States' position is, with respect to peaceful resolution of this issue. 1:29:15 Caspar Weinberger: So I don't think that we should be hampered by or felt that we are in any way bound by what is said by the communique, nor should we accept the argument that the communique sets the policy of the United States. 1:32:50 Caspar Weinberger: There are two separate states now, with a state-to-state relationship, and that the unification which was before emphasized, they repeated again in the statement of Mr. Koo, the head of their Trans- Strait Negotiating Committee, that the unification might come when China itself, the mainland, changes, but that that has not been the case and it is not now the case. 1:41:15 David “Mike” Lampton: Once both the mainland and Taiwan are in the WTO, each will have obligations to conduct its economic relations with the other according to international norms and in more efficient ways than now possible. 1:45:20 James Woolsey: The disestablishment of large, state-owned enterprises in China over the long run will bring some economic freedoms, I believe, that will quite possibly help change China and Chinese society and make it more conducive over time to political freedoms as well. But in the short run, the unemployment from the disestablishment of those enterprises can lead to substantial instability. February 7, 1996 Senate Foreign Relations Committee, Subcommittee on East Asian and Pacific Affairs Witness: Winston Lord, Assistant Secretary of East Asian and Pacific Affairs, U.S. Department of State Clips 16:45 Winston Lord: The Taiwan Relations Act of 1979 forms the basis of US policy regarding the security of Taiwan. Its premise is that an adequate defense in Taiwan is conducive to maintaining peace and security while differences remain between Taiwan and the PRC. I'm going to quote a few sections here because this is a very important statement of our policy. Section two B states, "It is the policy of the United States to consider any effort to determine the future of Taiwan by other than peaceful means, including by boycotts or embargoes, a threat to the peace and security of the Western Pacific area, and of grave concern to the United States. To provide Taiwan with arms of a defensive character, and to maintain the capacity of the United States to resist any resort to force or other forms of coercion that would jeopardize the security or the socioeconomic system of the people on Taiwan." Section three of the TRA also provides that the "United States will make available to Taiwan such defense articles and defense services in such quantity as may be necessary to enable Taiwan to maintain a sufficient self defense capability." 18:00 Winston Lord: The key elements of the US policy toward the Taiwan question are expressed in the three joint communiques with the PRC as follows. The United States recognizes the government of the PRC as the sole legal government of China. The US acknowledges the Chinese position that there is but one China and Taiwan as part of China. In 1982, the US assured the PRC that it has no intention of pursuing a policy of two Chinas, or one China, one Taiwan. Within this context, the people the US will maintain cultural, commercial and other unofficial relations with the people of Taiwan. The US has consistently held that the resolution of the Taiwan issue is a matter to be worked out peacefully by the Chinese themselves. A sole and abiding concern is that any resolution be peaceful. 19:30 Winston Lord: The U.S. government made reciprocal statements concerning our intentions with respect to arms sales to Taiwan, that we did not intend to increase the quantity or quality of arms supplied, and in fact intended gradually to reduce the sales. At the time the joint communique was signed, we made it clear to all parties concerned that our tensions were premised on the PRC's continued adherence to a policy of striving for peaceful reunification with Taiwan. 21:30 Winston Lord: The basic inventory of equipment which Taiwan has or will have in its possession will, in our view, be sufficient to deter any major military action against Taiwan. While arms sales policy aims to enhance the self defense capability of Taiwan, it also seeks to reinforce stability in the region. We will not provide Taiwan with capabilities that might provoke an arms race with the PRC or other countries in the region. 21:55 Winston Lord: Decisions on the release of arms made without proper consideration of the long term impact. both on the situation in the Taiwan Strait and on the region as a whole, would be dangerous and irresponsible. If armed conflict were actually breakout in the Taiwan Strait, the impact on Taiwan, the PRC, and indeed the region, would be extremely serious. The peaceful, stable environment that has prevailed in the Taiwan Strait since the establishment of our current policy in 1979 has promoted progress and prosperity on both sides of the Taiwan Strait. The benefits to Taiwan and the PRC have been obvious and I outline these in my statement. All of these achievements would be immediately put at risk in the event of conflict in the Strait. Conflict would also be costly to the United States and to our friends and allies in the region. Any confrontation between the PRC and Taiwan, however limited in scale or scope, would destabilize the military balance in East Asia and constrict the commerce and shipping, which is the economic lifeblood of the region. It would force other countries in the region to reevaluate their own defense policies, possibly fueling an arms race with unforeseeable consequences. It would seriously affect the tens of thousands of Americans who live and work in Taiwan and the PRC. Relations between the US and the PRC would suffer damage regardless of the specific action chosen by the President, in consultation with Congress. For all these reasons, we are firmly determined to maintain a balanced policy, which is best designed to avoid conflict in the area. Music Presented in This Episode by
TikTok might be banned from the United States. In this episode, hear testimony from TikTok’s CEO and judge for yourself if you think the arrangement that TikTok has negotiated with the U.S. government is enough to ensure that the Chinese government will not have the ability to manipulate the app or acquire your data. We also take a detailed look at the bill that would ban TikTok (by granting vast new authorities to the government) and we examine the big picture arena in which TikTok and the RESTRICT Act are merely sideshows. 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How the U.S. Has Governed the World Trade System U.S. Government-Corporate Spy Partnerships May 15, 2007. Frontline. Iran Nuclear Deal Nov 23, 2021. BBC News. Venezuela Agence France Presse. Apr 17, 2020. Barron’s. Russia-Ukraine Adam Plowright. Feb 12, 2023. Barron’s. China’s Trade and Currency Agreements Jan van der Made. March 31, 2023. RFI. Jamie Seidel. Mar 31, 2023. news.com.au. Agence France Presse. Mar 29, 2023. Barron’s. Peter A. Petri and Michael Plummer. Nov 16, 2020. Brookings. The Pacific Deterrence Initiative Brad Lendon. Apr 4, 2023. CNN. Sen. Jim Inhofe and Sen. Jack Reed. May 28, 2020. War on the Rocks. Chinese Economy Kristalina Georgieva. Mar 26, 2023. International Monetary Fund. Chinese Authoritarianism James Doubek. Mar 11, 2018. NPR. Jeremy Page and Chun Han Wong. Oct 25, 2017. The Wall Street Journal. Bills Audio Sources March 30, 2023 Fox News Clips Sen. Marco Rubio (R-FL): Brazil - in our hemisphere, largest country in the western hemisphere south of us - cut a trade deal with China. They’re going to, from now on, trade in their own currencies, get right around the dollar. They’re creating a secondary economy in the world totally independent of the United States. We won’t have to talk about sanctions in 5 years because there will be so many countries transacting in currencies other than the dollar that we won’t have the ability to sanction them. March 29, 2023 Twitter March 23, 2023 Fox News Clips Mark Warner: One of the things I always make clear is my beef is with the Communist Party of China. My beef is with Xi Jinping, the Communist Party leader, who treats his own people awfully... and I do think you need to make that distinction. Not about Chinese people. But to deny the authoritarian regime and their record is not based on a factual analysis. March 23, 2023 House Committee on Energy and Commerce Witness: Shou Chew, CEO, TikTok Clips 7:15 Rep. Cathy McMorris Rodgers (R-WA): TikTok collects nearly every data point imaginable, from people's location, to what they type and copy, who they talk to, biometric data, and more. Even if they've never been on Tik Tok, your trackers are embedded in sites across the web. Tik Tok surveys us all, and the Chinese Communist Party is able to use this as a tool to manipulate America as a whole. We do not trust Tik Tok will ever embrace American values; values for freedom, human rights, and innovation. Tik Tok has repeatedly chosen the path for more control, more surveillance, and more manipulation. Your platform should be banned. 15:25 Rep. Frank Pallone (D-NJ): National security experts are sounding the alarm, warning that the Chinese Communist government could require TikTok to compromise device security, maliciously access American user data, promote pro-Communist propaganda, and undermine American interests. Disinformation campaigns could be launched by the by the Chinese Communist government through TikTok, which has already become rife with misinformation and disinformation, illegal activities, and hate speech. A recent report found that 20% of TikTok search results on prominent news topics contain misinformation. 20:35 Shou Chew: Let me start by addressing a few misconceptions about ByteDance, of which we are a subsidiary. ByteDance is not owned or controlled by the Chinese government. It is a private company. 60% of the company is owned by global institutional investors, 20% is owned by the founder, and 20% owned by employees around the world. ByteDance has five board members, three of them are American. Now TikTok itself is not available in mainland China. We're headquartered in Los Angeles and in Singapore, and we have 7000 employees in the US today. 21:50 Shou Chew: The bottom line is this: American data stored on American soil by an American company overseen by American personnel. We call this initiative Project Texas. That's where Oracle is headquartered. Today, U.S. TikTok data is stored by default in Oracle's service. Only vetted personnel operating in a new company called TikTok U.S. Data Security can control access to this data. Now, additionally, we have plans for this company to report to an independent American board with strong security credentials. Now, there's still some work to do. We have legacy U.S. data sitting in our servers in Virginia and in Singapore. We're deleting those and we expect that to be completed this year. When that is done, all protected U.S. data will be under the protection of US law and under the control of the U.S.-led security team. This eliminates the concern that some of you have shared with me that TikTok user data can be subject to Chinese law. 22:55 Shou Chew: We also provide unprecedented transparency and security for the source code for the TikTok app and recommendation engine. Third party validators like Oracle and others will review and validate our source code and algorithms. This will help ensure the integrity of the code that powers what Americans see on our app. We will further provide access to researchers, which helps them study and monitor our content ecosystem. Now we believe we are the only company that offers this level of transparency. 23:35 Shou Chew: The potential security, privacy, [and] content manipulation concerns raised about TikTok are really not unique to us. The same issues apply to other companies. We believe what's needed are clear, transparent rules that apply broadly to all tech companies. Ownership is not at the core of addressing these concerns. 24:20 Shou Chew: TikTok will remain a place for free expression and will not be manipulated by any government. 27:30 Rep. Cathy McMorris Rodgers (R-WA): Have any moderation tools been used to remove content on TikTok associated with the Uyghur genocide? Yes or no? Shou Chew: We do not remove that kind of content. Tik Tok is a place for freedom of expression. Chairwoman, just like I said, if you use our app, you can go on it and you will see a lot of users around the world expressing content on that topic and many others. Rep. Cathy McMorris Rodgers (R-WA): Thank you. What about the massacre in Tiananmen Square? Yes or no? Shou Chew: I'm sorry, I didn't hear the question. Rep. Cathy McMorris Rodgers (R-WA): The massacre in Tiananmen Square. Shou Chew: That kind of content is available on our platform. You can go and search it. 28:05 Rep. Cathy McMorris Rodgers (R-WA): I will remind you that making false or misleading statements to Congress is a federal crime. 28:15 Rep. Cathy McMorris Rodgers (R-WA): Can you say with 100% certainty that ByteDance or the CCP cannot use your company or its divisions to heat content to promote pro-CCP messages for an act of aggression against Taiwan. Shou Chew: We do not promote or remove content at the request of the Chinese government. Rep. Cathy McMorris Rodgers (R-WA): The question is, are you 100% certain that they cannot use your company to promote such messages? Shou Chew: It is our commitment to this committee and all users that we will keep this free from any manipulation by any government. 39:10 Shou Chew: Congressman, since I've been CEO of this company I've not had any discussions with Chinese government officials. 43:55 Rep. Anna Eshoo (D-CA): The Chinese government has that data. How can you promise that that will move into the United States of America and be protected here? Shou Chew: Congresswoman, I have seen no evidence that the Chinese government has access to that data. They have never asked us; we have not provided it. I've asked that -- Rep. Anna Eshoo (D-CA): Well, you know what, I find that actually preposterous. Shou Chew: I have looked and I have seen no evidence of this happening. And in order to assure everybody here and all our users, our commitment is to move the data into the United States to be stored on American soil, by an American company, overseen by American personnel. So the risk will be similar to any government going to an American company asking for data. 44:40 Rep. Anna Eshoo (D-CA): Well I'm one that doesn't believe that there is really a private sector in China. 54:55 Rep. Diana DeGette (D-CO): So I want to know from you, and I will give you time to answer this. You have current controls, but the current controls are not working to keep dosinformation mainly from young people, but from Americans in general. What more is is TikTok doing to try to strengthen its review to keep disinformation from coming across to people. Shou Chew: Thank you for the question, Congresswoman. The dangerous misinformation that you mentioned is not allowed on our platform. It violates the -- Rep. Diana DeGette (D-CO): I'm sorry to report it is on your platform, though. Shou Chew: Congresswoman, I don't think I can sit here and say that we are perfect in doing this. We do work very hard. Rep. Diana DeGette (D-CO): How can you make yourself more perfect? I don't want you to say it's not there or you apologize. What can you do to limit it as much as possible, more than what you're doing now? Shou Chew: We invest a significant amount in our content moderation work. I shared that number in my written testimony -- Rep. Diana DeGette (D-CO): I know you're investing, but what steps are you taking to improve the AI, or whatever else you're doing, to limit this content? Shou Chew: For example, if you search for certain search terms, we do direct you on TikTok to safety resources. That's one of the things we have done. We will continue to invest in this I recognize and fully aligned with you that this is a problem that faces our industry that we need to really invest and address this. I'm very in alignment. 1:07:05 Rep. Jan Schakowsky (D-IL): Does TikTok share user information from companies...from parent companies...from affiliated...or send user information to...overseas? Shou Chew: In the past, yes, for interoperability purposes. Now, after Project Texas, all protected U.S. data will be stored here with the access controlled by a special team of U.S. personnel. 1:07:55 Rep. Jan Schakowsky (D-IL): I do want a quote from employees that you had, and here's the quote, "everything is seen in China" is really what they said. People who were in touch with the sensitive data were saying that. How do you respond to that? Shou Chew: I disagree with that statement. Rep. Jan Schakowsky (D-IL): Well, I know you disagree with that statement. But my point is, how does that happen that employees of the company are saying that in fact, that's not true. Shou Chew: I cannot speak to, I don't know who this person is, so I cannot speak to what the person has or has not said. What I can say is, you know, based on my position in this company, and the responsibility that I have, that statement is just not true. 1:11:00 Rep. Kat Cammack (R-FL): Yes or no, ByteDance is required to have a member of the Chinese government on its board with veto power, is that correct? Shou Chew: No, that is not correct. ByteDance owns some Chinese businesses and you're talking about this very special subsidiary that is for Chinese business license -- Rep. Kat Cammack (R-FL): Mr. Chew, I'm gonna have to move on. 1:19:20 Shou Chew: First, anything that is violated and harmful, we remove. What I meant to say were [sic] content that is not inherently inherently harmful, like some of the extreme fitness videos about people running 100 miles, is not inherently harmful, but if we show them too much, the experts are telling us that we should disperse them more and make sure that they're not seen too regularly, especially by younger users. 1:33:20 Rep. Bill Johnson (R-OH): Do you realize that making false and misleading statements to Congress is a federal crime? Shou Chew: Yes, I do. Rep. Bill Johnson (R-OH): Okay. 1:39:35 Shou Chew: We do want to be leading in terms of safety of our users, particularly for teenagers. We were the first to launch a 60 minute watch limit. Rep. John Sarbanes (D-MD): And let's talk about the 60 Minute -- Shou Chew: And I'm very glad to see others in our industry follow. For many of the recommendations, we will study them very seriously. We actually have a series of features. Like for example, if you're under 16, you cannot use a direct messaging feature, because we know we want to protect those younger users. If you're under 16, you cannot go viral by default. If you're under 18, you cannot go live. 1:48:20 Rep. Paul Tonko (D-NY): Will you continue to get information from these third parties on its users health? Shou Chew: Get information? We do not get any user health information from third parties. 1:56:20 Shou Chew: The American data has always been stored in Virginia and Singapore in the past. And access of this is on an as required basis by engineers globally — Rep. Tim Walberg (R-SC): As required by who? Shou Chew: By engineers, for business purposes -- Rep. Tim Walberg (R-SC): Engineers? ByteDance? The Communist Party? Shou Chew: No, no. Rep. Tim Walberg (R-SC): Why? How can you say that if they have access -- Shou Chew: This is a business. This is a private business, and like many other businesses, many other American companies, we rely on the global workforce. Rep. Tim Walberg (R-SC): So the global workforce, that includes ByteDance, which is connected directly to the Chinese Communist Party. Shou Chew: That is a mischaracterization that we disagree with. Now, in the future -- Rep. Tim Walberg (R-SC): That's not what we can disagree with. That's a fact. Shou Chew: It's not, unfortunately. Rep. Tim Walberg (R-SC): The CEO of ByteDance and your relationship to them. Shou Chew: Congressman, respectfully, in my opening statement, I said this is a private company, it's owned 60% by global investors. Three out of the five board members on ByteDance are Americans. This is a private business Rep. Tim Walberg (R-SC): You report directly to ByteDance, with a CEO who is a member of Communist Party. Let me move on — Shou Chew: He is not. Rep. Tim Walberg (R-SC): -- I think we got the answer. 2:07:20 Shou Chew: We do not collect body, face, or voice data to identify our users. We do not -- Rep. Buddy Carter (R-GA): You don't? Shou Chew: No, the only face data that you get that we collect is when you use the filters to have sunglasses on your face. We need to know where your eyes are -- Rep. Buddy Carter (R-GA): Why do you need to know what the eyes are if you're not seeing if they're dilated? Shou Chew: -- and that data is stored on your local device and deleted after use if you use it for facial. Again, we do not collect body, face, or voice data to identify users. Rep. Buddy Carter (R-GA): I find that hard to believe. 2:30:20 Rep. Gary Palmer (R-AL): When the Chinese Communist government bought a share ByteDance, it's been described as the Chinese Communist Government's way of quieter form of control, and that companies have little choice in selling a stake to the government if they want to stay in business, and what I'd like to know is when the Chinese Communist government moved to buy shares of ByteDance, were you informed beforehand, yes or no? Shou Chew: No, Congressman, ByteDance -- Rep. Gary Palmer (R-AL): Were you or anyone with TikTok asked for your opinion about the sale of shares of ByteDance to the Chinese Communist government? Yes or no? Shou Chew: It just, this hasn't happened. 2:34:55 Rep. Debbie Dingell (D-MI): Mr. Chew, have any prior versions of TikTok's app collected precise GPS information from us users, yes or no? Shou Chew: Yes. From back in 2020, about three years ago. Rep. Debbie Dingell (D-MI): Are there currently TikTok users who still hold old versions of the app that collect precise GPS information from U.S. users? Yes or no? Shou Chew: That could be, but that's a small percentage. 2:36:05 Rep. Debbie Dingell (D-MI): Has TikTok, at any time, sold precise GPS information collected from U.S. users? Yes or no? Shou Chew: We do not sell data to data brokers if that's the question. Rep. Debbie Dingell (D-MI): And you've never done that? Shou Chew: I do not believe so. 2:37:15 Rep. Debbie Dingell (D-MI): Has TikTok, at any time, provided the Chinese government with either precise GPS information collected from U.S. users or inferences made from that data? Shou Chew: That I can give you a straight answer: no. 2:37:30 Rep. Debbie Dingell (D-MI): Mr. Chew, even in Congress, even if Congress were to ban Tiktok, I'm concerned that China or others would still have access to US consumer data by purchasing it through data brokers. Will you commit not to sell any of TikTok's data to data brokers now or in the future? Shou Chew: We do not do that. We do not sell data to data brokers now. Rep. Debbie Dingell (D-MI): Will you commit to not do it in the future? Shou Chew: This is -- certain members of industry who do this. I think this has to be broad legislation to help us, the whole industry, address this problem. 3:13:15 Rep. Debbie Lesko (R-AZ): A March 21, Forbes article revealed how troves of personal data of Indian citizens who once used TikTok remained widely accessible to employees at the company and its Beijing based parent ByteDance. A current TikTok employee told Forbes that nearly anyone with basic access to company tools, including employees in China, can easily look up the closest contacts and other sensitive information about any user. This current TikTok employee also said, "If you want to start a movement, if you want to divide people, if you want to do any of the operation to influence the public on the app, you can just use that information to target those groups." Mr. Chew, why would a current TikTok employee say this if it wasn't true? Shou Chew: This is a recent article, I have asked my team to look into it. As far as I know there is, we have rigorous data access protocols. There's really no such thing where anybody can get access to tools. Rep. Debbie Lesko (R-AZ): Alright. Shou Chew: So I disagree with a lot of the conclusions of that. 3:18:20 Rep. Darren Soto (D-FL): So Mr. Chew, would TikTok be prepared to divest from ByteDance and Chinese Communist Party ties if the Department of Treasury instructed you all to do so? Shou Chew: Congressman, I said in my opening statement, I think we need to address the problem of privacy. I agree with you. I don't think ownership is the issue here, with a lot of respect. American social companies don't have a good track record with data privacy and user security. I mean, look at Facebook and Cambridge Analytica, just one example. So I do think that you know, it is not about the ownership, it is a lot about making sure we have Project Texas, making sure that we're protecting and firewalling U.S. user data from unwanted foreign access, giving third parties to come in to have a look at this and making sure that everybody is comfortable. We're giving transparency and third party monitoring and that's what we're doing for Project Texas. 4:24:15 Shou Chew: Congressman, we have only one process of removing content on our platform and the process is done by our content moderation team headquartered in Ireland and the US, and we will only remove content that violates our guidelines, and that's something that we audit, or if there's a valid legal order. 4:26:05 Rep. Randy Weber (R-TX): Here are my concerns with TikTok. Your claims are hard to believe. It's no secret to us that TikTok is still under the thumb of CCP influence and, let's be honest, TikTok is indoctrinating our children with divisive, woke, and pro-CCP propaganda. 4:27:15 Rep. Randy Weber (R-TX): Should we plan to have a committee hearing every time, every day, every time there's something brought up so that we can limit the content on TikTok? Should Congress plan to do that Mr. Chew? Rep. Raul Ruiz (D-CA): Almost 30% of the videos that came up contained misinformation...a high level of misinformation...misinformation...disinformation...misleading information...harmful misinformation...misinformation...misinformation. Why are these dangerous videos falling through the cracks of your company's efforts to enforce its own community guidelines and remove harmful misinformation? 4:30:20 Shou Chew: Yes, any dangerous misinformation is...we partner with third party experts to be able to identify and help us with subject domain expertise. And with their expertise that we recognize, we rely on those to develop policies to recognize and remove could be -- Rep. Raul Ruiz (D-CA): Well, your efforts I have failed, and they're dangerous. 4:33:10 Shou Chew: I can get back to you on the specifics, but dangerous misinformation is moderated regardless of language. Rep. Raul Ruiz (D-CA): Not to the degree that it needs to be. 4:58:40 Rep. August Pfluger (R-TX): Are keystroke patterns and rhythms part of TikTok gathering the data that is gathered by TikTok? Shou Chew: If you're talking, Congressman, specifically about keystrokes, you know, we do not. We do not engage in keystroke logging to monitor what the users say. It's to identify bots for security purposes, and this is a standard industry practice. 5:24:30 Rep. Dan Crenshaw (R-TX): Here's the main point of concern: China's 2017 National Intelligence law states very clearly, that, "any organization or citizen shall support, assist and cooperate with state intelligence work in accordance with the law and maintain the secrecy of all knowledge of state intelligence work." In other words, ByteDance, and also your TikTok employees that live in China, they must cooperate with Chinese intelligence whenever they are called upon. And if they are called upon, they're bound to secrecy. That would include you. So Mr. Chew, if the CCP tells ByteDance to turn over all data that TikTok has collected inside the US, even within Project Texas, do they have to do so according to Chinese law? Shou Chew: Congressman, first, I'm Singaporean. Rep. Dan Crenshaw (R-TX): That's fine. But there are employees of yours and ByteDance's in China. Shou Chew: We understand this concern. In my opening statement, we said we hear these concerns, we didn't try to avoid them or you know, trivialize them, we built something where we take the data and put it out of reach. This is what we did, we put it out of reach. Rep. Dan Crenshaw (R-TX): But they own you. Shou Chew: No, we put it out of reach by -- Rep. Dan Crenshaw (R-TX): ByteDance owns Tiktok and the CCP owns ByteDance, because the CCP owns everybody in China. So by law, they can make them do whatever they want. And they say that by law, you can't tell anyone about it. So they can make you hand over that data is that correct? Shou Chew: Data is stored here in American soil, by an American company overseen by American -- Rep. Dan Crenshaw (R-TX): Leaked audio from 80 internal TikTok meeting shows that US user data has been repeatedly accessed from China, when you said it hasn't been. And here's the other thing, following back on my colleagues line of questioning. In your own privacy policy, it says that you may share information within your so called "Corporate Group" is ByteDance part of that corporate group? Shou Chew: If you're talking about the share of the entity with the share, like I shared with the previous -- Rep. Dan Crenshaw (R-TX): Is ByteDance part of the corporate group? Shou Chew: ByteDance, as a holding company, is part of the corporate group, yes. Rep. Dan Crenshaw (R-TX): Part of the corporate group. Okay, so your own privacy policy says you have to share data with ByteDance. And if the CCP says, Hey ByteDance, you're going to do what we say and you can't tell anyone about it because by law, according to that 2017 National Intelligence law, they have to do it. That's our concern. 5:26:50 Rep. Dan Crenshaw (R-TX): Okay, so my last point is this, I want to say this to all the teenagers out there, and the TikTok influencers who think we're just old and out of touch and don't know what we're talking about, trying to take away your favorite app. You may not care that your data is being accessed now, but it will be one day when you do care about it. And here's the real problem: with data comes power. They can choose what you see and how you see it. They can make you believe things that are not true. They can encourage you to engage in behavior that will destroy your life. Even if it is not happening yet, it could in the future. The long term goal of the Chinese Communist Party is the demise of the American power, and that starts with our youth. At any moment, they could demand that all of TikTok's data be used to design an AI algorithm with the sole purpose of promoting Chinese interests and destroying our society from within. You want to know why Democrats and Republicans have come together on this? That's why we are so concerned. 2:07:55 Rep. Buddy Carter (R-GA): How do you determine what age they are then? Shou Chew: We rely on age-gating as our key age assur-- Rep. Buddy Carter (R-GA): Age...? Shou Chew: -gating, which is when you ask the user what age they are. We have also developed some tools where we look at their public profile to go through the videos that they post to see whether-- Rep. Buddy Carter (R-GA): Well that's creepy. Tell me more about that. Shou Chew: It's public. So if you post a video [and] you choose that video to go public, that's how you get people to see your video. We look at those to see if it matches up the age that you told. February 7, 2023 House Committee on Financial Services Witnesses: Former Senior Director for International Economics and Competitiveness, National Security Council and National Economic Council Clips Rep. David Scott (D-GA): I am deeply concerned with the fast growing possibility of a China-led world order. That includes the Chinese military controlling the South Pacific trade route because the South Pacific trade war is now the lifeline of the entire global economy. Peter E. Harrell: I think it's important that we all, as we think about China policy, we all recognize that China, though a serious competitor, and by far our most significant economic competitor, is not 10 feet tall. It's not some sort of mythical beast that we cannot out-compete. I think you've highlighted a couple of the reasons, Congresswoman, why that's the case. They do have high levels of debt. They also have serious long term demographic problems, coming to having a shrinking working age population. Rep. William Timmins (R-SC): The question is what are we going to do to get China to reform their behavior and compete in the global economy and be good actors in the global economy. That's the question. February 1, 2023 Committee on Energy and Commerce, Subcommittee on Innovation, Data, and Commerce Witnesses: Samm Sacks, Senior Fellow, New America & Senior Fellow, Yale Law School Paul Tsai China Center Clips Samm Sacks: I mean, to be honest, I think that the grading profiles based on aggregate data is primarily a counterintelligence concern for individuals with national security clearances and the military or access to sensitive information for your average American what that what the impact would probably be more in terms of would that population or individual preference information could that be used to push information that would make say, a spear phishing attack more appealing it might be more likely that someone would would be a would click on a link because it appealed to them based on information that was collected? And so I would say it's, I would look at it from that angle. But why highlighted in my testimony, the more sort of far reaching impact is on economic competitiveness, which is a distinct issue, right? It's on Chinese firms who are able to access diverse international data sets beyond China. What that allows them to do is train AI models that could be more competitive in markets outside of China, where they're competing head to head with US firms. So I would bucket the risk. You have national security issues. You also have missed it targeted misinformation that could be used from that, as well as economic competitiveness between us and Chinese firms. And it's important to sort of be clear about those distinct buckets of risk. Samm Sacks: I guess I'll start with the TikTok issue. But you know, I think that there are two important issues on the table. One is data security, who has access to what, and the other is the potential to push misinformation online, the recommendation algorithm. My understanding is that there is a national security agreement on the table. You know, from a data security standpoint, if Oracle has the data in the cloud, there are multiple third party auditors and an oversight board that reports to CFIUS, I think that that would be pretty much locked down. The question around what kind of information the recommendation system pushes forward is an important one. And that also under this agreement -- it's called Project Texas and I've published about it just a week or so ago -- would be again, subject to verification, source code reviewed, essentially vetted by CFIUS. I think it's important that the public understand what that national security agreement would look like and then have a debate. Is this enough to address those concerns? And to what extent would other social media companies also need to meet them? Music Presented in This Episode by
The First Amendment prohibits the U.S. government from censoring speech. In this episode, drawing from internal Twitter documents known as “the Twitter files” and Congressional testimony from tech executives, former Twitter employees, and journalists, we examine the shocking formal system of censorship in which government employees are using their influence over private companies to indirectly censor speech in a way that they are clearly prohibited from doing directly. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Twitter Files Matt Taibbi. Jan 4, 2023. Racket News. Matt Taibbi Matt Taibbi. Mar 12, 2023. Racket News. Feb 13, 2023. The Joe Rogan Experience. Hunter Biden Laptop Story [tweet]. Michael Shellenberger [@ShellenbergerMD]. Dec 19, 2022. Twitter. Influence, Propaganda, and Censorship Alex Berenson. Jan 9, 2023. Unreported Truths. Lee Fang. December 20, 2022. The Intercept. Aug 24, 2022. The Washington Post. Audio Sources March 9, 2023 House Judiciary Committee, Subcommittee on the Weaponization of the Federal Government Witnesses: Matt Taibbi, Journalist Michael Shellenberger, Author, Co-founder of the Breakthrough Institute and the California Peace Coalition Clips 17:20 Rep. Jim Jordan (R-OH): In the run up to the 2020 Presidential election, FBI Special Agent Elvis Chan, in his deposition in Missouri versus Biden, said that he repeatedly, repeatedly, informed Twitter and other social media platforms of the likelihood of a hack and leak operation in the run up to that Presidential election. He did it even though there was no evidence. In fact, he said in his deposition that we hadn't seen anything, no intrusions, no hack, yet he repeatedly told them something was common. Yoel Ross, Head of Trust and Safety at Twitter, testified that he had had regular meetings with the Office of the Director of National Intelligence, the Department of Homeland Security, the FBI, and other folks regarding election security. During these weekly meetings, federal law enforcement agencies communicated that they expected a hack and leak operation. The expectations of a hack and leak operation were discussed throughout 2020. And he was told they would occur in a period shortly before the 2020 Presidential election, likely in October. And finally, he said "I also learned in these meetings, that there were rumors that a hack and leak operation would involve Hunter Biden." So what did the government tell him? A hack and leak operation was coming. How often did the government tell him this? Repeatedly for a year. When did the government say it was going to happen? October of 2020. And who did the government say it would involve? Hunter Biden. 19:35 Rep. Jim Jordan (R-OH): How did they know? Maybe it's because they had the laptop and they had had it for a year. 21:50 Rep. Jim Jordan (R-OH): Finally, as if on cue, five days later on October 19, 51 former intel[ligence] officials signed a letter with a now famous sentence "the Biden laptop story has all the classic earmarks of a Russian information operation." Something that was absolutely false. 25:25 Rep. Stacey Plaskett (D-VI): And the Republicans have brought in two of Elon Musk's public scribes to release cherry-picked, out-of-context emails and screenshots designed to promote his chosen narrative, Elon Musk's chosen narrative, that is now being paroted by the Republicans, because the Republicans think that these witnesses will tell a story that's going to help them out politically. 25:50 Rep. Stacey Plaskett (D-VI): On Tuesday, the majority released an 18 page report claiming to show that the FTC is quote, "harassing" Twitter -- oh my poor Twitter -- including by seeking information about its interactions with individuals before us today. How did the report reach this conclusion? By showing two single paragraphs from a single demand letter, even though the report itself makes clear that there were numerous demand letters with numerous requests, none of which we've been able to see, that are more demand letters and more requests of Twitter. 28:05 Rep. Stacey Plaskett (D-VI): Mr. Chairman, Americans can see through this. Musk is helping you out politically and you're going out of your way to promote and protect him and to praise him for his work. 28:15 Rep. Stacey Plaskett (D-VI): This isn't just a matter of what data was given to these so-called journalists before us now. 31:35 Rep. Stacey Plaskett (D-VI): Mr. Chairman, I'm not exaggerating when I say that you have called before you two witnesses who pose a direct threat to people who oppose them. 32:30 Rep. Stacey Plaskett (D-VI): We know this is because at the first hearing, the Chairman claimed that big government and big tech colluded to shape and mold the narrative and suppress information and censor Americans. This is a false narrative. We're engaging in false narratives here and we are going to tell the truth. 37:35 Michael Shellenberger: I recognize that the law allows Facebook, Twitter, and other private companies to moderate content on their platforms and I support the right of governments to communicate with the public, including to dispute inaccurate information, but government officials have been caught repeatedly pushing social media platforms to censor disfavored users and content. Often these acts of censorship threaten the legal protection social media companies need to exist, Section 230. If government officials are directing or facilitating such censorship, and as one law professor, it raises serious First Amendment questions. It is axiomatic that the government cannot do indirectly what it is prohibited from doing directly. 41:50 Matt Taibbi: My name is Matt Taibbi, I've been a reporter for 30 years and a staunch advocate of the First Amendment. Much of that time was spent at Rolling Stone magazine. Ranking Member Plaskett, I'm not a "so-called" journalist. I've won the National Magazine Award, the I.F Stone Award for Independent Journalism, and I've written 10 books, including four New York Times bestsellers. 45:35 Matt Taibbi: Ordinary Americans are not just being reported to Twitter for deamplification or deplatforming, but to firm's like Pay Pal, digital advertisers like Xandr, and crowdfunding sites like GoFundMe. These companies can and do refuse service to law abiding people and businesses whose only crime is falling afoul of a distant, faceless, unaccountable, algorithmic judge. 44:00 Matt Taibbi: Again, Ranking Member Plaskett, I would note that the evidence of Twitter-government relationship includes lists of tens of thousands of names on both the left and right. The people affected include Trump supporters, but also left leaning sites like Consortium and Truthout, the leftist South American channel TeleSUR, the Yellow Vest movement. That, in fact, is a key point of the Twitter files, that it's neither a left nor right issue. 44:40 Matt Taibbi: We learned Twitter, Facebook, Google and other companies developed a formal system for taking in moderation requests from every corner of government from the FBI, the DHS, the HHS, DOD, the Global Engagement Center at [the Department of] State, even the CIA. For every government agency scanning Twitter, there were perhaps 20 quasi private entities doing the same thing, including Stanford's Election Integrity Partnership, Newsguard, the Global Disinformation Index, and many others, many taxpayer funded. A focus of this fast growing network, as Mike noted, is making lists of people whose opinions beliefs, associations, or sympathies are deemed misinformation, disinformation or malinformation. That last term is just a euphemism for true but inconvenient. Undeniably, the making of such lists is a form of digital McCarthyism. 1:01:00 Matt Taibbi: So, a great example of this is a report that the Global Engagement Center sent to Twitter and to members of the media and other platforms about what they called "the Pillars of Russian Disinformation." Now, part of this report is what you would call, I think you would call, traditional hardcore intelligence gathering where they made a reasoned, evidence baseed case that certain sites were linked to Russian influence or linked to the Russian government. In addition to that, however, they also said that sites that quote, "generate their own momentum," and have opinions that are in line with those accounts are part of a propaganda ecosystem. Now, this is just another word for guilt by association. And this is the problem with the whole idea of trying to identify which accounts are actually the Internet Research Agency and which ones are just people who follow those accounts or retweeted them. Twitter initially did not find more than a handful of IRA accounts. It wasn't until they got into an argument with the Senate Select Intelligence Committee that they came back with a different answer. 1:06:00 Rep. Debbie Wasserman-Schultz (D-FL): Before you became Elon Musk's handpicked journalists, and pardon the oxymoron, you stated this on Joe Rogan's podcast about being spoon fed information. And I quote, "I think that's true of any kind of journalism," and you'll see it behind me here. "I think that's true of any kind of journalism. Once you start getting handed things, then you've lost. They have you at that point and you got to get out of that habit. You just can't cross that line." Do you still believe what you told Mr. Rogan? Yes or no? Yes or no? Matt Taibbi: Yes. Rep. Debbie Wasserman-Schultz (D-FL): Good. Now, you crossed that line with the Twitter files. Matt Taibbi: No. Rep. Debbie Wasserman-Schultz (D-FL): Elon Musk -- It's my time, please do not interrupt me. Crowd: [laughter] Rep. Debbie Wasserman-Schultz (D-FL): Elon Musk spoon fed you his cherry-picked information, which you must have suspected promotes a slanted viewpoint, or at the very least generates another right wing conspiracy theory. 1:11:20 Matt Taibbi: That moment on the Joe Rogan show, I was actually recounting a section from Seymour Hersh's book, Reporter, where he described a scene where the CIA gave him a story and he was very uncomfortable. He said that "I, who had always gotten the secrets, was being handed the secrets." Again, I've done lots of whistleblower stories. There's always a balancing test that you make when you're given material, and you're always balancing newsworthiness versus the motives of your sources. In this case, the newsworthiness clearly outweighed any other considerations. I think everybody else who worked on the project agrees. 1:14:45 Rep. Dan Bishop (R-NC): Richard Stengel, you know who that is? Matt Taibbi: Yes, he's the former, the first head of the Global Engagement Center. Rep. Dan Bishop (R-NC): I want the American people to hear from him for 30 seconds. Richard Stengel: Basically, every country creates their own narrative story. And, you know, my old job at the State Department was what people used to joke as the "chief propagandist" job. We haven't talked about propaganda. Propaganda. I'm not against propaganda. Every country does it, and they have to do it to their own population. 1:24:20 Rep. Jim Jordan (R-OH): December 13, the very first letter that the FTC sends to Twitter after the Twitter files, 11 days after the first Twitter file, there have been five of them come out, the FTC's first demand in that first letter after the Twitter files come out is identify all journalists. I'm quoting "identify all journalists and other members of the media" to whom Twitter worked with. You find that scary, Mr. Taibbi, that you got a federal government agency asking a private company who in the press are you talking with? Matt Taibbi: I do find it scary. I think it's none of the government's business which journalists a private company talks to and why. I think every journalist should be concerned about that. And the absence of interest in that issue by my fellow colleagues in the mainstream media is an indication of how low the business has sunk. There was once a real esprit de corps and camaraderie within Media. Whenever one of us was gone after, we all kind of rose to the challenge and supported -- Rep. Jim Jordan (R-OH): It used to be, used to be the case. Matt Taibbi: Yeah, that is gone now. 1:28:50 Rep. Stacey Plaskett (D-VI): How many emails did Mr. Musk give you access to? Michael Shellenberger: I mean, we went through thousands of emails. Rep. Stacey Plaskett (D-VI): Did he give you access to all of the emails for the time period in which? Michael Shellenberger: We never had a single, I never had a single request denied. And not only that, but the amount of files that we were given were so voluminous that there was no way that anybody could have gone through them beforehand. And we never found an instance where there was any evidence that anything had been taken out. Rep. Stacey Plaskett (D-VI): Okay. So you would believe that you have probably millions of emails and documents, right? That's correct, would you say? Michael Shellenberger: I don't know if -- I think the number is less than that. Matt Taibbi: Millions sounds too high. Rep. Stacey Plaskett (D-VI): Okay. 100,000? Matt Taibbi: That's probably closer. Michael Shellenberger: Probably, yeah. Rep. Stacey Plaskett (D-VI): So 100,000 that both of you were seeing. 1:37:10 Matt Taibbi: There were a couple of very telling emails that wepublished. One was by a lawyer named [Sasha Cardiel???], where the company was being so overwhelmed by requests from the FBI and in fact they, they gave each other a sort of digital High Five after one batch, saying "that was a monumental undertaking to clear all of these," but she noted that she believed that the FBI was essentially doing word searches keyed to Twitter's Terms of Service, looking for violations of the Terms of Service, specifically so that they could make recommendations along those lines, which we found interesting. 1:48:15 Michael Shellenberger: And we haven't talked about Facebook, but we now know that we have the White House demanding that Facebook take down factual information and Facebook doing that. 1:48:25 Michael Shellenberger: And with Matt [Taibbi]'s thread this morning we saw the government contractors demanding the same thing of Twitter: accurate information, they said, that needed to be taken down in order to advance a narrative. 1:49:55 Matt Taibbi: You know, in conjunction with our own research, there's a foundation, the Foundation for Freedom Online, which, you know, there's a very telling video that they uncovered where the Director of Stanford's Election Integrity Partnership (EIP) talks about how CISA, the DHS agency, didn't have the capability to do election monitoring, and so that they kind of stepped in to "fill the gaps" legally before that capability could be amped up. And what we see in the Twitter files is that Twitter executives did not distinguish between DHS or CISA and this group EIP, for instance, we would see a communication that said, from CISA, escalated by EIP. So they were essentially identical in the eyes of the company. EIP is, by its own data, and this is in reference to what you brought up, Mr. Congressman, according to their own data, they significantly targeted more what they call disinformation on the right than on the left, by a factor I think of about ten to one. And I say that as not a Republican at all, it's just the fact of what we're looking at. So yes, we have come to the realization that this bright line that we imagine that exists between, say the FBI or the DHS, or the GEC and these private companies is illusory and that what's more important is this constellation of kind of quasi private organizations that do this work. 1:52:10 Rep. Sylvia Garcia (D-TX): What was the first time that Mr. Musk approached you about writing the Twitter files? Matt Taibbi: Again, Congresswoman that would — Rep. Sylvia Garcia (D-TX): I just need a date, sir. Matt Taibbi: But I can't give it to you, unfortunately, because this this is a question of sourcing, and I don't give up... I'm a journalist, I don't reveal my sources. Rep. Sylvia Garcia (D-TX): It's a question of chronology. Matt Taibbi: No, that's a question of sourcing — Rep. Sylvia Garcia (D-TX): Earlier you said that someone had sent you, through the internet, some message about whether or not you would be interested in some information. Matt Taibbi: Yes. And I refer to that person as a source. Rep. Sylvia Garcia (D-TX): So you're not going to tell us when Musk first approached you? Matt Taibbi: Again, Congresswoman, you're asking me, you're asking a journalist to reveal a source. Rep. Sylvia Garcia (D-TX): You consider Mr. Musk to be the direct source of all this? Matt Taibbi: No, now you're trying to get me to say that he is the source. I just can't answer — Rep. Sylvia Garcia (D-TX): Either he is or he isn't. If you're telling me you can't answer because it's your source, well, then the only logical conclusion is that he is in fact, your source. Matt Taibbi: Well, you're free to conclude that. Rep. Sylvia Garcia (D-TX): Well, sir, I just don't understand. You can't have it both ways. But let's move on because -- Unknown Representative 1: No, he can. He's a journalist. Unknown Representative 2: He can't, because either Musk is the source and he can't talk about it, or Musk is not the source. And if Musk is not the source, then he can discuss [unintelligible] Rep. Jim Jordan (R-OH): No one has yielded, the gentlelady is out of order, you don't get to speak — Multiple speakers: [Crosstalk] Rep. Jim Jordan (R-OH): The gentlelady is not recognized...[crosstalk]...he has not said that, what he has said is he's not going to reveal his source. And the fact that Democrats are pressuring him to do so is such a violation of the First Amendment. Multiple speakers: [Crosstalk] Rep. Sylvia Garcia (D-TX): I have not yielded time to anybody. I want to reclaim my time. And I would ask the chairman to give me back some of the time because of the interruption. Mr. Chairman, I am asking you, if you will give me the seconds that I lost. Rep. Jim Jordan (R-OH): We will give you that 10 seconds. Rep. Sylvia Garcia (D-TX): Thank you. Now let's talk about another item. When you responded to the ranking member, you said that you had free license to look at everything but yet you yourself posted on your...I guess it's kind of like a web page...I don't quite understand what Substack is, but what I can say is that "in exchange for the opportunity to cover a unique and explosive story, I had to agree to certain conditions." What were those conditions? She asked you that question and you said you had none. But you yourself posted that you had conditions? Matt Taibbi: The conditions, as I've explained multiple times -- Rep. Sylvia Garcia (D-TX): No sir, you have not explained, you told her in response to her question that you had no conditions. In fact, you used the word licensed, that you were free to look at all of them. All 100,000 emails. Matt Taibbi: The question was posed, was I free to to write about — Rep. Sylvia Garcia (D-TX): Sir, did you have any conditions? Matt Taibbi: The condition was that we publish — Rep. Sylvia Garcia (D-TX): Sir, did you have any conditions? Yes or no? A simple question. Matt Taibbi: Yes. Rep. Sylvia Garcia (D-TX): All right. Could you tell us what conditions those were? Matt Taibbi: The conditions were an attribution of sources at Twitter and that we break any news on Twitter. Rep. Sylvia Garcia (D-TX): But you didn't break it on Twitter. Did you send the file that you released today to Twitter first? Matt Taibbi: Did I send the...actually I did, yes. Rep. Sylvia Garcia (D-TX): Did you send it to Twitter first? Matt Taibbi: The Twitter files thread? Rep. Sylvia Garcia (D-TX): That was one of the conditions? Yes or no, sir. Matt Taibbi: The Twitter files thread actually did come out first. Rep. Sylvia Garcia (D-TX): But sir, you said earlier that you had to attribute all the sources to Twitter first. What you released today, did you send that to Twitter first? Matt Taibbi: No, no, no, I post I posted it on Twitter Rep. Sylvia Garcia (D-TX): First. First, sir, or did you give it to the Chairman of the Committee or the staff of the Committee first? Matt Taibbi: Well, that's not breaking the story, that's giving...I did give — Rep. Sylvia Garcia (D-TX): So you gave all the information that you did not give to the Democrats, you gave it to the Republicans first, then you put it on Twitter? Matt Taibbi: Actually, no, the chronology is a little bit confused. Rep. Sylvia Garcia (D-TX): Well then tell us what the chronology was. Matt Taibbi: I believe the thread came out first. Rep. Sylvia Garcia (D-TX): Where? Matt Taibbi: On Twitter Rep. Sylvia Garcia (D-TX): On Twitter. So then you afterwards gave it to the Republicans, and not the Democrats? Matt Taibbi: Yes, because I'm submitting it for the record as my statement. Rep. Sylvia Garcia (D-TX): Did you give it to him in advance? Matt Taibbi: I gave it to them today. Rep. Sylvia Garcia (D-TX): You gave it to them today, but you still have not given anything to the Democrats. Well, I'll move on. 1:57:20 Rep. Sylvia Garcia (D-TX): Now in your discussion, in your answer, you also said that you were invited by a friend, Bari Weiss? Michael Shellenberger: My friend, Bari Weiss. Rep. Sylvia Garcia (D-TX): So this friend works for Twitter, or what is her....? Matt Taibbi: She's a journalist. Rep. Sylvia Garcia (D-TX): Sir, I didn't ask you a question. I'm now asking Mr. Shellenberger a question. Michael Shellenberger: Yes, ma'am, Bari Weiss is a journalist. Rep. Sylvia Garcia (D-TX): I'm sorry, sir? Michael Shellenberger: She's a journalist. Rep. Sylvia Garcia (D-TX): She's a journalist. So you work in concert with her? Michael Shellenberger: Yeah. Rep. Sylvia Garcia (D-TX): Do you know when she first was contacted by Mr. Musk? Michael Shellenberger: I don't know. Rep. Sylvia Garcia (D-TX): You don't know. So you're in this as a threesome? 2:00:10 Michael Shellenberger: Reading through the whole sweep of events, I do not know the extent to which the influence operation aimed at "pre-bunking" the Hunter Biden laptop was coordinated. I don't know who all was involved. But what we saw was, you saw Aspen and Stanford, many months before then, saying don't cover the material in the hack and leak without emphasizing the fact that it could be disinformation. Okay, so they're priming journalists to not cover a future hack and leak in a way that journalists have long been trained to in the tradition of the Pentagon Papers, made famous by the Steven Spielberg movie. They were saying [to] cover the fact that it probably came from the Russians. Then you have the former General Counsel to the FBI, Jim Baker, and the former Deputy Chief of Staff to the FBI, both arriving at Twitter in the summer of 2020, which I find, what an interesting coincidence. Then, when the New York Post publishes its first article on October 14, it's Jim Baker who makes the most strenuous argument within Twitter, multiple emails, multiple messages saying this doesn't look real. There's people, there's intelligence experts, saying that this could be Russian disinformation. He is the most strenuous person inside Twitter arguing that it's probably Russian disinformation. The internal evaluation by Yoel Roth, who testified in front of this committee, was that it was what it looked to be, which was that it was not a result of a hack and leak operation. And why did he think that? Because the New York Post had published the FBI subpoena taking the laptop in December of 2019. And they published the agreement that the computer store owner had with Hunter Biden that gave him permission, after he abandoned the laptop, to use it however he wanted. So there really wasn't much doubt about the provenance of that laptop. But you had Jim Baker making a strenuous argument. And then, of course, you get to a few days after the October 14 release, you have the president of the United States echoing what these former intelligence community officials were saying, which is that it looked like a Russian influence operation. So they were claiming that the laptop was made public by the conspiracy theory that somehow the Russians got it. And basically, they convinced Yoel Roth of this wild hack and leak story that somehow the Russians stole it, got the information, gave us the computer, it was bizarre. So you read that chain of events, and it appears as though there is an organized influence operation to pre-bunk.... Rep. Jim Jordan (R-OH): Why do you think they could predict the time, the method, and the person? Why could the FBI predict it? Not only did they predict this, they predicted it, so did the Aspen Institute, seemed like everyone was in the know saying, here's what's gonna happen, we can read the future. Why do you think, how do you think they were able to do that? Michael Shellenberger: I think the most important fact to know is that the FBI had that laptop in December 2019. They were also spying on Rudy Giuliani when he got the laptop and when he gave it to the New York Post. Now, maybe the FBI agents who are going to Mark Zuckerberg at Facebook and Twitter executives and warning of a hack and leak, potentially involving Hunter Biden, maybe those guys didn't have anything to do with the guys that had the top. We don't know that. I have to say, as a newcomer to this, as somebody that thought it was Russian disinformation in 2020, everybody I knew thought it was Russian disinformation, I was shocked to see that series of events going on. It looks to me like a deliberate influence operation. I don't have the proof of it, but the circumstantial evidence is pretty disturbing. 2:14:30 Matt Taibbi: We found, just yesterday, a Tweet from the Virality Project at Stanford, which was partnered with a number of government agencies, and Twitter, where they talked explicitly about censoring stories of true vaccine side effects and other true stories that they felt encouraged hesitancy. Now the imp— Unknown Representative: So these were true. Matt Taibbi: Yes. So they use the word truth three times in this email, and what's notable about this is that it reflects the fundamental misunderstanding of this whole disinformation complex, anti-disinformation complex. They believe that ordinary people can't handle difficult truths. And so they think that they need minders to separate out things that are controversial or difficult for them, and that's again, that's totally contrary to what America is all about, I think. 2:17:30 Rep. Dan Goldman (D-NY): Of course we all believe in the First Amendment, but the First Amendment applies to government prohibition of speech, not to private companies. 2:33:00 Rep. Dan Goldman (D-NY): And even with, Twitter you cannot find actual evidence of any direct government censorship of any lawful speech. 2:33:20 Rep. Jim Jordan (R-OH): I'd ask unanimous consent to enter into the record the following email from Clarke Humphrey, Executive Office of the Presidency, White House Office, January 23, 2021. That's the Biden Administration. 4:39am: "Hey folks," this goes to Twitter, "Hey folks, wanted..." they used the term Mr. Goldman just used, "wanted to flag the below Tweet, and I'm wondering if we can get moving on the process for having it removed ASAP." 2:35:40 Rep. Mike Johnson (R-LA): He said the First Amendment applies to government censorship of speech and not private companies, but what we're talking about and what the Chairman just illustrated is that what we have here and what your Twitter files show is the Federal government has partnered with private companies to censor and silence the speech of American citizens. 2:29:20 Matt Taibbi: In the first Twitter files, we saw an exchange between Representative Ro Khanna and Vijaya Gadde, where he's trying to explain the basics of speech law in America and she's completely, she seems completely unaware of what, for instance, New York Times v. Sullivan is. There are other cases like Bartnicki v. Vopper, which legalized the publication of stolen material, that's very important for any journalists to know. I think most of these people are tech executives, and they don't know what the law is around speech and around reporting. And in this case, and in 2016, you are dealing with true material. There is no basis to restrict the publication of true material no matter who the sources and how you get it. And journalists have always understood that and this has never been an issue or a controversial issue until very recently. 2:44:40 Rep. Kat Cammack (R-FL): Would you agree that there was a black list created in 2021? Michael Shellenberger: Sorry, yes, Jay Bhattacharya, the Stanford Professor, who I don't think anybody considers a fringe epidemiologist, was indeed -- I'm sorry, I couldn't, I didn't piece it together -- he was indeed visibility filtered. Rep. Kat Cammack (R-FL): Correct. And so this blacklist that was created, that really was used to de-platform, reduce visibility, create lists internally, where people couldn't even see their profiles, that was used against doctors and scientists who produced information that was contrary to what the CDC was putting out, despite the fact that we now know that what they were publishing had scientific basis and in fact was valid. Michael Shellenberger: Absolutely. And not only that, but these are secret blacklists, so Professor Bhattacharya had no idea he was on it. 43:05 Matt Taibbi: The original promise of the internet was that it might democratize the exchange of information globally. A free internet would overwhelm all attempts to control information flow, its very existence a threat to anti-democratic forms of government everywhere. What we found in the Files was a sweeping effort to reverse that promise and use machine learning and other tools to turn the Internet into an instrument of censorship and social control. Unfortunately, our own government appears to be playing a lead role. We saw the first hints and communications between Twitter executives before the 2020 election, when we read things like "flagged by DHS," or "please see attached report from FBI for potential misinformation." This would be attached to an Excel spreadsheet with a long list of names, whose accounts were often suspended shortly after. February 13, 2023 The Joe Rogan Experience Clips Matt Taibbi: So this is another topic that is fascinating because it hasn't gotten a ton of press. But if you go back all the way to the early 70s, the CIA and the FBI got in a lot of trouble for various things, the CIA for assassination schemes involving people like Castro, the FBI for, you know, COINTELPRO and other programs, domestic surveillance, and they made changes after Congressional hearings, the Church Committee, that basically said the FBI, from now on, you have to have some kind of reason to be following somebody or investigating somebody, you have to have some kind of criminal predicate and we want you mainly to be investigating cases. But after 9/11 they peeled all this back. There was a series of Attorney General memos that essentially re-fashioned what the FBI does, and now they don't have to be doing crimefighting all the time. Now they can be doing basically 100% intelligence gathering all the time. They can be infiltrating groups for no reason at all, not to build cases, but just to get information. And so that's why they're there. They're in these groups, they're posted up outside of the homes of people they find suspicious, but they're not building cases and they're not investigating crimes. It's sort of like Minority Report there, right? It's pre-crime. Matt Taibbi: We see reports in these files of government agencies sending lists of accounts that are accusing the United States of vaccine corruption. Now, what they're really talking about is pressuring foreign countries to not use generic vaccines. Right. And, you know, that's a liberal issue, that's a progressive issue. The progressives want generic vaccines to be available to poor countries, okay? But, you know, you can use this tool to eliminate speech about that if you want too, right? I think that's what they don't get is that the significance is not who [it's used against], the significance is the tool. What is it capable of doing, right? How easily is it employed, and you know, how often is it used? And they don't focus on that. Joe Rogan: Has anything been surprising to you? Matt Taibbi: A little bit. I think going into it, I thought that the relationship between the security agencies like the FBI and the DHS and companies like Twitter and Facebook, I thought it was a little bit less formal. I thought maybe they had kind of an advisory role. And what we find is that it's not that, it's very formalized. They have a really intense structure that they've worked out over a period of years where they have regular meetings. They have a system where the DHS handles censorship requests that come up from the States and the FBI handles international ones, and they all float all these companies and it's a big bureaucracy. I don't think we expected to see that. Matt Taibbi: I was especially shocked by an email from a staffer for Adam Schiff, the Congressperson, the California Congressman. And they're just outright saying we would like you to suspend the accounts of this journalist and anybody who retweets information about this Committee. You know, I mean, this is a member of Congress. Joe Rogan: Yeah. Matt Taibbi: Right? Most of these people have legal backgrounds. They've got lawyers in the office for sure. And this is the House Intelligence Committee. February 8, 2023 House Committee on Oversight and Accountability Witnesses: Vijaya Gadde, Former Chief Legal Officer, Twitter James Baker, Former Deputy General Counsel, Twitter Yoel Roth, Former Global Head of Trust & Safety, Twitter Annika Collier Navaroli, Former Policy Expert for Content Moderation, Twitter Clips 14:50 Rep. Jamie Raskin (D-MD): What's more, Twitter's editorial decision has been analyzed and debated ad nauseam. Some people think it was the right decision. Some people think it was the wrong decision. But the key point here is that it was Twitter's decision. Twitter is a private media company. In America, private media companies can decide what to publish or how to curate content however they want. If Twitter wants to have nothing but Tweets commenting on New York Post articles run all day, it can do that. If it makes such tweets mentioning New York Post never see the light of day they can do that too. That's what the First Amendment means. 16:05 Rep. Jamie Raskin (D-MD): Officially Twitter happens to think they got it wrong about that day or two period. In hindsight, Twitter's former CEO Jack Dorsey called it a mistake. This apology might be a statement of regret about the company being overly cautious about the risks of publishing contents and potentially hacked or stolen materials, or it may reflect craven surrender to a right wing pressure campaign. But however you interpreted the apology just makes the premise of this hearing all the more absurd. The professional conspiracy theorists who are heckling and haranguing this private company have already gotten exactly what they want: an apology. What more do they want? And why does the US Congress have to be involved in this nonsense when we have serious work to do for the American people? 26:20 James Baker: The law permits the government to have complex, multifaceted, and long term relationships with the private sector. Law enforcement agencies and companies can engage with each other regarding, for example, compulsory legal process served on companies, criminal activity that companies, the government, or the public identify, such as crimes against children, cybersecurity threats, and terrorism, and instances where companies themselves are victims of crime. When done properly, these interactions can be beneficial to both sides and in the interest of the public. As you Mr. Chairman, Mr. Jordan, and others have proposed, a potential workable way to legislate in this area may be to focus on the actions of federal government agencies and officials with respect to their engagement with the private sector. Congress may be able to limit the nature and scope of those interactions in certain ways, require enhanced transparency and reporting by the executive branch about its engagements, and require higher level approvals within the executive branch prior to such engagements on certain topics, so that you can hold Senate confirmed officials, for example, accountable for those decisions. In any event, if you want to legislate, my recommendation is to focus first on reasonable and effective limitations on government actors. Thank you, Mr. Chairman. 31:05 Vijaya Gadde: On October 14, 2020, The New York Post tweeted articles about Hunter Biden's laptop with embedded images that looked like they may have been obtained through hacking. In 2018, we had developed a policy intended to prevent Twitter from becoming a dumping ground for hacked materials. We applied this policy to the New York Post tweets and blocked links to the articles embedding those sorts of materials. At no point to Twitter otherwise prevent tweeting, reporting, discussing or describing the contents of Mr. Biden's laptop. People could and did talk about the contents of the laptop on Twitter or anywhere else, including other much larger platforms, but they were prevented from sharing the primary documents on Twitter. Still, over the course of that day, it became clear that Twitter had not fully appreciated the impact of that policy on free press and others. As Mr. Dorsey testified before Congress on multiple occasions, Twitter changed its policy within 24 hours and admitted its initial action was wrong. This policy revision immediately allowed people to tweet the original articles with the embedded source materials, relying on its long standing practice not to retroactively apply new policies. Twitter informed the New York Post that it could immediately begin tweeting when it deleted the original tweets, which would have freed them to retweet the same content again. The New York Post chose not to delete its original tweets, so Twitter made an exception after two weeks to retroactively apply the new policy to the Post's tweets. In hindsight, Twitter should have reinstated the Post account immediately. 35:35 Yoel Roth: In 2020, Twitter noticed activity related to the laptop that at first glance bore a lot of similarities to the 2016 Russian hack and leak operation targeting the DNC, and we had to decide what to do. And in that moment with limited information, Twitter made a mistake. 36:20 Yoel Roth: It isn't obvious what the right response is to a suspected, but not confirmed, cyber attack by another government on a Presidential Election. I believe Twitter erred in this case because we wanted to avoid repeating the mistakes of 2016. 38:41 Annika Collier Navaroli: I joined Twitter in 2019 and by 2020 I was the most senior expert on Twitter's U.S. Safety Policy Team. My team's mission was to protect free speech and public safety by writing and enforcing content moderation policies around the world. These policies include things like abuse, harassment, hate speech, violence and privacy. 41:20 Annika Collier Navaroli: With January 6 and many other decisions, content moderators like me did the very best that we could. But far too often there are far too few of us and we are being asked to do the impossible. For example, in January 2020 after the US assassinated an Iranian General and the US president decided to justify it on Twitter, management literally instructed me and my team to make sure that World War III did not start on the platform. 1:08:20 Rep. Nancy Mace (R-SC): Did the US government ever contact you or anyone at Twitter to censor or moderate certain Tweets, yes or no? Vijaya Gadde: We receive legal demands to remove content from the platform from the US government and governments all around the world. Those are published on a third party website. 1:12:00 Yoel Roth: The number one most influential part of the Russian active measures campaign in 2016 was the hack and leak targeting John Podesta. It would have been foolish not to consider the possibility that they would run that play again. 1:44:45 Yoel Roth: I think one of the key failures that we identified after 2016 was that there was very little information coming from the government and from intelligence services to the private sector. The private sector had the power to remove bots and to take down foreign disinformation campaigns, but we didn't always know where to look without leads supplied by the intelligence community. That was one of the failures highlighted in the Senate Intelligence Committee's report and in the Mueller investigation, and that was one of the things we set out to fix in 2017. Rep. Gerry Connolly (D-VA): On September 8 2019, at 11:11pm, Donald Trump heckled two celebrities on Twitter -- John Legend and his wife Chrissy Teigen -- and referred to them as "the musician John Legend and his filthy mouth wife." Ms. Teigen responded to that email [Tweet] at 12:17am. And according to notes from a conversation with you, Ms. Navaroli's, counsel, your counsel, the White House almost immediately thereafter contacted Twitter to demand the tweet be taken down. Is that accurate? Annika Collier Navaroli: Thank you for the question. In my role, I was not responsible for receiving any sort of request from the government. However, what I was privy to was my supervisors letting us know that we had received something along those lines or something of a request. And in that particular instance, I do remember hearing that we had received a request from the White House to make sure that we evaluated this tweet, and that they wanted it to come down because it was a derogatory statement towards the President. Rep. Gerry Connolly (D-VA): They wanted it to come down. They made that request. Annika Collier Navaroli: To my recollection, yes. Rep. Gerry Connolly (D-VA): I thought that was an inappropriate action by a government official, let alone the White House. But it wasn't Joe Biden, about his son's laptop. It was Donald Trump because he didn't like what Chrissy Teigen had to say about him, is that correct? Annika Collier Navaroli: Yes, that is correct. Rep. Gerry Connolly (D-VA): My, my, my. 1:45:15 Rep. Shontel Brown (D-OH): Mr. Roth, were those communication channels useful to Twitter as they work to combat foreign influence operations? Yoel Roth: Absolutely, I would say they were one of the most essential pieces of how Twitter prepared for future elections. 2:42:35 Rep. Becca Balint (D-VA): Ms. Gadde, did anyone from the Biden campaign or the Democratic National Committee direct Twitter to remove or take action against the New York Post story? Vijaya Gadde: No. 4:15:45 Rep. Kelly Armstrong (R-ND): And now we forward to 2020. And earlier you had testified that you were having regular interactions with National Intelligence, Homeland Security and the FBI. Yoel Roth: Yes, I did. Rep. Kelly Armstrong (R-ND): And primarily to deal with foreign interference? Yoel Roth: Primarily, but I would say -- Rep. Kelly Armstrong (R-ND): But you had said earlier your contact with Agent Chang was primarily with foreign interference? Yoel Roth: Yes, that's right. Rep. Kelly Armstrong (R-ND): And these were emails....were there meetings? Yoel Roth: Yes, Twitter met quarterly with the FBI Foreign Interference Task Force and we had those meetings running for a number of years to share information about malign foreign interference. Rep. Kelly Armstrong (R-ND): Agents from Homeland Security or Intelligence, or just primarily the FBI? Yoel Roth: Our primary contacts were with the FBI and in those quarterly meetings, they were, I believe, exclusively with FBI personnel. 4:18:05 Rep. Kelly Armstrong (R-ND): Earlier today you testified that you were following national security experts on Twitter as a reason to take down the New York Post story on Hunter Biden's laptop. Yoel Roth: Yes, sir, I did. Rep. Kelly Armstrong (R-ND): So after 2016, you set up all these teams to deal with Russian interference, foreign interference, you're having regular meetings with the FBI, you have connections with all of these different government agencies, and you didn't reach out to them once? Yoel Roth: Is that question in reference to the day of the New York Post article? Rep. Kelly Armstrong (R-ND): Yeah. Yoel Roth: That's right. We generally did not reach out to the FBI to consult on content moderation decisions, especially where they related to domestic activity. It's not that we wouldn't have liked that information, we certainly would have. It's that I don't believe it would have been appropriate for us to consult with the FBI. Rep. Kelly Armstrong (R-ND): In December of 2020, you did a declaration to the Federal Election Commission that the intelligence community expected a leak and a hack operation involving Hunter Biden. Recently, Mark Zuckerberg confirmed that the FBI warned Meta that there was a high effort of Russian propaganda including language specific enough to fit the Hunter Biden laptop security story. You're talking to these people for weeks and months, years prior to this leaking. They have specifically told you in October, that there's going to be a leak potentially involving Hunter Biden's laptop. They legitimately and literally prophesized what happened. And you didn't contact any of them? Yoel Roth: No, sir, I did not. Rep. Kelly Armstrong (R-ND): Did they reach out to you? Yoel Roth: On and around that day, to the best of my recollection, no, they did not. Rep. Kelly Armstrong (R-ND): After the story was taken down and you guys did it, and you personally disagreed with it Ms. Gadde, did you contact them and say is "Hey, is this what you were talking about?" Yoel Roth: If that question was directed to me. No, I did not. Rep. Kelly Armstrong (R-ND): Ms. Gadde, did you talk to anybody from the FBI? Vijaya Gadde: Not to the best of my recollection. Rep. Kelly Armstrong (R-ND): So I guess my question is, what is the point of this program? You have constant communication, they're set up for foreign interference. They've legitimately warned you about this very specific thing. And then all of a sudden, everybody just walks away? 5:18:55 Rep. Melanie Stansbury (D-NM): We are devoting an entire day to this conspiracy theory involving Twitter. Now, the mission of this committee is to root out waste, fraud and abuse and to conduct oversight on behalf of the American people. And if you need any evidence of waste, fraud and abuse, how about the use of this committee's precious time, space and resources to commit to this hearing? 5:58:25 Rep. Eric Burlison (R-MO): Back to Mr. Roth, is it true that Twitter whitelisted accounts for the Department of Defense to spread propaganda about its efforts in the Middle East? Did they give you a list of accounts that were fake accounts and asked you to whitelist those accounts? Yoel Roth: That request was made of Twitter. To be clear, when I found out about that activity, I was appalled by it. I undid the action and my team exposed activity originating from the Department of Defense's campaign publicly. We've shared that data with the world and research about it has been published. 6:07:20 Rep. Jim Jordan (R-OH): Mr. Roth, I want to go back to your statement in your declaration to the FEC "I learned that a hack and leak operation would involve Hunter Biden," who did you learn that from? Yoel Roth: My recollection is it was mentioned by another technology company in one of our joint meetings, but I don't recall specifically whom. Rep. Jim Jordan (R-OH): You don't know the person's name? Yoel Roth: I don't even recall what company they worked at. No, this was a long time ago. Rep. Jim Jordan (R-OH): And you're confident that it was from a tech company, not from someone from the government? Yoel Roth: To the best of my recollection, yes. Rep. Jim Jordan (R-OH): Did anyone from the government, in these periodic meetings you had, did they ever tell you that a hack and leak operation involving Hunter Biden was coming? Yoel Roth: No. Rep. Jim Jordan (R-OH): Did Hunter Biden's name come up at all these meetings? Yoel Roth: Yes, his name was raised in those meetings, but not by the government to the best of my recollection. 6:09:30 Rep. Jim Jordan (R-OH): Mr. Roth, why were you reluctant, based on what I read in the Twitter files, why were you reluctant to work with the GEC? Yoel Roth: It was my understanding that the GEC, or the Global Engagement Center of the State Department, had previously engaged in at least what some would consider offensive influence operations. Not that they were offensive as in bad, but offensive as in they targeted entities outside of the United States. And on that basis, I felt that it would be inappropriate for Twitter to engage with a part of the State Department that was engaged in active statecraft. We were dedicated to rooting out malign foreign interference no matter who it came from. And if we found that the American government was engaged in malign foreign interference, we'd be addressing that as well. 6:13:50 Rep. James Comer (R-KY): Twitter is a private company, but they enjoy special liability protections, Section 230. They also, according to the Twitter files, receive millions of dollars from the FBI, which is tax dollars, I would assume. And that makes it a concern of the Oversight Committee. October 28, 2020 Senate Commerce, Science and Transportation Committee Witnesses: Jack Dorsey, [Former] CEO, Twitter Sundar Pichai, CEO, Alphabet and Google Mark Zuckerberg, CEO, Facebook [Meta] Clips 2:20:40 Sen. Ed Markey (D-MA): The issue is not that the companies before us today are taking too many posts down. The issue is that they’re leaving too many dangerous posts up. In fact, they’re amplifying harmful content so that it spreads like wildfire and torches our democracy. 3:15:40 Mark Zuckerberg: Senator, as I testified before, we relied heavily on the FBI, his intelligence and alert status both through their public testimony and private briefings. Sen. Ron Johnson (R-WI): Did the FBI contact you, sir, than your co star? It was false. Mark Zuckerberg: Senator not about that story specifically. Sen. Ron Johnson (R-WI): Why did you throttle it back? Mark Zuckerberg: They alerted us to be on heightened alert around a risk of hack and leak operations around a release and probe of information. June 18, 2020 Permanent Select Committee on Intelligence Witnesses: Nathaniel Gleicher, Head of Security Policy at Facebook Nick Pickles, Director of Global Public Policy Strategy and Development at Twitter Richard Salgado, Director for Law Enforcement and Information Security at Google 1:40:10 Nathaniel Gleicher: Congressman, the collaboration within industry and with government is much, much better than it was in 2016. I think we have found the FBI, for example, to be forward leaning and ready to share information with us when they see it. We share information with them whenever we see indications of foreign interference targeting our election. The best case study for this was the 2018 midterms, where you saw industry, government and civil society all come together, sharing information to tackle these threats. We had a case on literally the eve of the vote, where the FBI gave us a tip about a network of accounts where they identified subtle links to Russian actors. 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Background Sources Recommended Congressional Dish Episodes World Trade System James McWhinney. Oct 10, 2021. Investopedia. Sally Denton. Simon and Schuster: 2017. Littoral Combat Ships Eric Lipton. Feb 4, 2023. The New York Times. Open Secrets. Foreign Military Sales Program March 10, 2022. Senate Foreign Relations Committee. Ecuador Encyclopedia Britannica. Catrin Einhorn and Manuela Andreoni. Updated Jan 20, 2023. The New York Times. June S. Beittel and Rachel L. Martin. Sep 9, 2022. Congressional Research Service. June S. Beittel. Updated Feb 13, 2018. Congressional Research Service. June S. Beittel. Updated April 20, 2017. Congressional Research Services. Debt Default Sarah Anderson and Neil Watkins. Dec 15, 2008. Institute for Policy Studies. Simon Romero. Dec 12, 2008. The New York Times. Violence and Drugs Nov 4, 2022. International Crisis Group. Jun 8, 2022. EcuadorTimes.net. Vanessa Buschschluter. Nov 4, 2021. BBC. Oct 19, 2021. Deutsche Welle. Mining Updated Mar 28, 2022. CGTN America. Bitty A. Roy. Jun 19, 2018. Tropical Conservation Science. Foreign Infrastructure Investments Nov 28, 2022. BNamericas. May 27, 2022. U.S. Trade and Development Agency. Richard Jiménez and Allen Panchana. Dec 16, 2021. Diálogo Chino. Frank Dougherty. Mar 1, 2021. Power. Fishing Joshua Goodman. Nov 2, 2022. Chattanooga Times Free Press. October 2022. U.S. Interagency Working Group on IUU Fishing. Oct 7, 2022. U.S. Agency for International Development. U.S. Coast Guard. Oct 5, 2022. Diálogo Americas. Adam Chandler. Dec 16, 2015. The Atlantic. Cutter Ships Ronald O'Rourke. Updated August 30, 2022. Congressional Research Service. Julian Assange Luke Harding et al. May 15, 2018. The Guardian. Simon Romero. Apr 5, 2011. The New York Times. Chevron Case Zack Budryk. Dec 27, 2022. The Hill. Venezuela Apr 14, 2021. teleSUR. China Trade Deal Jan 3, 2023. Reuters. Sep 23, 2022. The Dialogue. Alexandra Valencia. Feb 5, 2022. Reuters. Business Reforms Ramiro Crespo. Mar 3, 2022. Latin American Advisor. U.S. Ecuador Partnership Isabel Chriboga. Dec 22, 2022. The Atlantic Council. Jim Wiesemeyer. Dec 21, 2022. AgWeb. Dec 19, 2022. Al Jazeera. Isabel Chiriboga. Dec 19, 2022. The Atlantic Council. Nov 1, 2022. Office of the United States Trade Representative. Oct 19, 2022. U.S. Embassy & Consulate in Ecuador. Referendum Sebastián Hurtado. Dec 19, 2022. Americas Quarterly. State Enterprise Resignation Jan 18, 2023. Buenos Aires Times. Lithium Triangle John Price. Aug 22, 2022. Americas Market Intelligence. Colombia Catherine Osborn. Jan 20, 2023. Foreign Policy. María Paula Rubiano A. Nov 16, 2022. BBC. June S. Beittel. Updated December 16, 2021. Congressional Research Service. Tax Reform Ricardo Ávila. Nov 23, 2022. Americas Quarterly. Cesar Vence and Megan Bridges. Oct 26, 2022. U.S. Chamber of Commerce. U.S. Chamber of Commerce. Relationship with U.S. Cancer Treatment Centers of America. Jul 8, 2021. City of Hope. Kejal Vyas. May 4, 2020. The Wall Street Journal. Luoping Zhang et al. Mutation Research/Reviews in Mutation Research Vol. 781, July–September 2019, pp. 186-206. Jun 26, 2018. Syria Mehdi Hasan. Oct 26, 2019. The Intercept. Jan 20, 2021. U.S. Department of State, Bureau of Near Eastern Affairs. Mark Mazzetti et al. Aug 2, 2017. The New York Times. C. J. Chivers and Eric Schmitt. Mar 24, 2013. The New York Times. Government Funding Dec 23, 2022. House Appropriations Committee Democrats. Senate Appropriations Committee. Senate Appropriations Committee. Laws Bills Audio Sources January 19, 2023 The Atlantic Council Clips 17:51 Gen. Laura Richardson: The Belt and Road Initiative (BRI) that has been ongoing for the last over a decade in this region, 21 of 31 countries have signed on to this Belt and Road Initiative. I could take Argentina last January, the most recent signatory on to the Belt and Road Initiative, and $23 billion in infrastructure projects that signatory and signing on to that. But again, 21 of 31 countries. There are 25 countries that actually have infrastructure projects by the PRC. Four that aren't signatories of the BRI, but they do actually have projects within their countries. But not just that. Deepwater ports in 17 countries. I mean, this is critical infrastructure that's being invested in. I have the most space enabling infrastructure in the Western Hemisphere in Latin America and the Caribbean. And I just caused question, you know, why? Why is all of this critical infrastructure being invested in so heavily? In terms of telecommunications, 5G, I've got five countries with the 5G backbone in this region. I've got 24 countries with the PRC Huawei 3G-4G. Five countries have the Huawei backbone infrastructure. If I had to guess, they'll probably be offered a discount to upgrade and stay within the same PRC network. And so very, very concerning as we work with our countries. 20:00 Gen. Laura Richardson: What I'm starting to see as well is that this economy...the economy impacts to these partner nations is affecting their ability to buy equipment. And you know, as I work with our partner nations, and they invest in U.S. equipment, which is the best equipment, I must say I am a little biased, but it is the best equipment, they also buy into the supply chain of spare parts, and all those kinds of things that help to sustain this piece of equipment over many, many years. So in terms of the investment that they're getting, and that equipment to be able to stay operational, and the readiness of it, is very, very important. But now these partner nations, due to the impacts of their economy, are starting to look at the financing that goes along with it. Not necessarily the quality of the equipment, but who has the best finance deal because they can't afford it so much up front. 24:15 Gen. Laura Richardson: This region, why this region matters, with all of its rich resources and rare earth elements. You've got the lithium triangle which is needed for technology today. 60% of the world's lithium is in the lithium triangle: Argentina Bolivia, Chile. You just have the largest oil reserves -- light, sweet, crude -- discovered off of Guyana over a year ago. You have Venezuela's resources as well with oil, copper, gold. China gets 36% of its food source from this region. We have the Amazon, lungs of the world. We have 31% of the world's freshwater in this region too. I mean, it's just off the chart. 28:10 Gen. Laura Richardson: You know, you gotta question, why are they investing so heavily everywhere else across the planet? I worry about these dual-use state-owned enterprises that pop up from the PRC, and I worry about the dual use capability being able to flip them around and use them for military use. 33:30 Interviewer: Russia can't have the ability to provide many of these countries with resupply or new weapons. I mean, they're struggling to supply themselves, in many cases, for Ukraine. So is that presenting an opportunity for maybe the US to slide in? Gen. Laura Richardson: It is, absolutely and we're taking advantage of that, I'd like to say. So, we are working with those countries that have the Russian equipment to either donate or switch it out for United States equipment. or you Interviewer: Are countries taking the....? Gen. Laura Richardson: They are, yeah. 45:25 Gen. Laura Richardson: National Guard State Partnership Program is huge. We have the largest National Guard State Partnership Program. It has come up a couple of times with Ukraine. Ukraine has the State Partnership Program with California. How do we initially start our great coordination with Ukraine? It was leveraged to the National Guard State Partnership Program that California had. But I have the largest out of any of the CoCOMMs. I have 24 state partnership programs utilize those to the nth degree in terms of another lever. 48:25 Gen. Laura Richardson: Just yesterday I had a zoom call with the U.S. Ambassadors from Argentina and Chile and then also the strategy officer from Levant and then also the VP for Global Operations from Albermarle for lithium, to talk about the lithium triangle in Argentina, Bolivia and Chile and the companies, how they're doing and what they see in terms of challenges and things like that in the lithium business and then the aggressiveness or the influence and coercion from the PRC. June 15, 2022 Clips Rep. Jackie Speier (D-CA): The GAO found that the LCS had experienced engine failure in 10 of the 11 deployments reviewed. Rep. Jackie Speier (D-CA): One major reason for the excessive costs of LCS: contractors. Unlike other ships where sailors do the maintenance, LCS relies almost exclusively on contractors who own and control the technical data needed to maintain and repair. Rep. Jackie Speier (D-CA): Our top priority and national defense strategy is China and Russia. We can't waste scarce funds on costly LCS when there are more capable platforms like destroyers, attack submarines, and the new constellation class frigate. May 25, 2022 Senate Appropriations Committee, Subcommittee on Defense Witnesses: Carlos Del Toro, Secretary, United States Navy Admiral Michael M. Gilday, Chief of Naval Operations General David H. Berger, Commandant of the Marine Corps Clips Sen. Jerry Moran (R-KS): I think the christening was just a few years ago...maybe three or so. So the fact that we christened the ship one year and a few years later we're decommissioning troubles me. Sen. Jerry Moran (R-KS): Are there not other uses, if there's something missing from this class of ships, that we would avoid decommissioning? Adm. Michael Gilday: We need a capable, lethal, ready Navy more than we need a larger Navy that's less capable, less lethal, and less ready. And so, unfortunately the Littoral combat ships that we have, while the mechanical issues were a factor, a bigger factor was was the lack of sufficient warfighting capability against a peer competitor in China. Adm. Michael Gilday: And so we refuse to put an additional dollar against that system that wouldn't match the Chinese undersea threat. Adm. Michael Gilday: In terms of what are the options going forward with these ships, I would offer to the subcommittee that we should consider offering these ships to other countries that would be able to use them effectively. There are countries in South America, as an example, as you pointed out, that would be able to use these ships that have small crews. April 25, 2022 March 31, 2022 Senate Foreign Relations Committee Witnesses: Kerri Hannan, Deputy Assistant Secretary for Public Diplomacy, Policy, Planning, and Coordination, Bureau of Western Hemisphere Affairs, U.S. Department of State Peter Natiello, Senior Deputy Assistant Administrator, Latin America and Caribbean Bureau, U.S. Agency for International Development Andrew M. Herscowitz, Chief Development Officer, U.S. International Development Finance Corporation Margaret Myers, Director of the Asia & Latin America Program, Inter-American Dialogue Evan Ellis, Senior Associate, Center for Strategic and International Studies Clips 24:20 Sen. Tim Kaine (D-VA): Ecuador for example, nearly 20 years ago, former President Rafael Correa promised modernization for Ecuador, embracing Chinese loans and infrastructure projects in exchange for its oil. Fast forward to today. Ecuador now lives with the Chinese financed and built dam that's not fully operational despite being opened in 2016. The Coca Codo Sinclair Dam required over 7000 repairs, it sits right next to an active volcano, and erosion continues to damage the dam. The dam also caused an oil spill in 2020 that has impacted indigenous communities living downstream. And all that's on top of the billions of dollars that Ecuador still owes China. 56:40 Peter Natiello: One example that I could provide is work that we've done in Ecuador, with Ecuadorian journalists, to investigate, to analyze and to report on the issue of illegal and unregulated fishing off Ecuador's coast. And we do that because we want to ensure that Ecuadorian citizens have fact-based information upon which they can make decisions about China and countries like China, and whether they want their country working with them. 1:23:45 Sen. Ed Markey (D-MA): There are 86 million tons of identified lithium resources on the planet. On the planet. 49 million of the 86 million are in the Golden Triangle. That's Argentina, Bolivia, Chile. So what's our plan? 1:54:10 Evan Ellis: In security engagement, the PRC is a significant provider of military goods to the region including fighters, transport aircraft, and radars for Venezuela; helicopters and armored vehicles for Bolivia; and military trucks for Ecuador. 2:00:00 Margaret Myers: Ecuador is perhaps the best example here of a country that has begun to come to terms with the challenges associated with doing business with or interacting from a financial or investment perspective with China. And one need only travel the road from the airport to Quito where every day there are a lot of accidents because of challenges with the actual engineering of that road to know why many Ecuadorians feel this way. March 10, 2022 Senate Committee on Foreign Relations Witnesses: Jessica Lewis, Assistant Secretary of State for Political-Military Affairs, U.S. Department of State Mara Elizabeth Karlin, Assistant Secretary of Defense for Strategy, Plans and Capabilities, U.S. Department of Defense Clips 1:23:17 Sen. Chris Murphy (D-CT): According to one study, the DoD manages 48 of the 50 new security assistance programs that were created after the 9/11 attacks and out of the 170 existing security assistance programs today, DOD manages 87, a whopping 81% of those programs. That is a fundamental transition from the way in which we used to manage security assistance. And my worry is that it takes out of the equation the people who have the clearest and most important visibility on the ground as to the impact of that security assistance and those transfers. Sen. Chris Murphy: We just spent $87 billion in military assistance over 20 years in Afghanistan. And the army that we supported went up in smoke overnight. That is an extraordinary waste of U.S. taxpayer dollars, and it mirrors a smaller but similar investment we made from 2003 to 2014 in the Iraqi military, who disintegrated when they faced the prospect of a fight against ISIS. Clearly, there is something very wrong with the way in which we are flowing military assistance to partner countries, especially in complicated war zones. You've got a minute and 10 seconds, so maybe you can just preview some lessons that we have learned, or the process by which we are going to learn lessons from all of the money that we have wasted in Iraq and Afghanistan. Jessica Lewis: Senator, I'll be brief so that Dr. Karlin can jump in as well. I think we do need to learn lessons. We need to make sure, as I was just saying to Senator Cardin, that when we provide security assistance, we also look not just at train and equip, but we look at other things like how the Ministries of Defense operate? Is their security sector governant? Are we creating an infrastructure that's going to actually work? Mara Elizabeth Karlin: Thank you for raising this issue, Senator. And I can assure you that the Department of Defense is in the process of commissioning a study on this exact issue. I will just say in line with Assistant Secretary Lewis, it is really important that when we look at these efforts, we spend time assessing political will and we do not take an Excel spreadsheet approach to building partner militaries that misses the higher order issues that are deeply relevant to security sector governance, that will fundamentally show us the extent to which we can ultimately be successful or not with a partner. Thank you. Sen. Chris Murphy (D-CT): You know, in Iraq, last time I was there, we were spending four times as much money on security assistance as we were on non-security assistance. And what Afghanistan taught us amongst many things, is that if you have a fundamentally corrupt government, then all the money you're flowing into the military is likely wasted in the end because that government can't stand and thus the military can't stand. So it also speaks to rebalancing the way in which we put money into conflict zones, to not think that military assistance alone does the job. You got to be building sustainable governments that serve the public interests in order to make your security assistance matter and be effective. Thank you, Mr. Chairman. March 8, 2022 House Armed Services Committee Witnesses: Melissa G. Dalton, Assistant Secretary of Defense for Homeland Defense and Hemispheric Affairs Office of the Secretary of Defense General Laura Richardson, USA, Commander, U.S. Southern Command General Glen D. VanHerck, USAF, Commander, U.S. Northern Command and North American Aerospace Defense Command Clips 17:30 General Laura Richardson: Colombia, for example, our strongest partner in the region, exports security by training other Latin American militaries to counter transnational threats. 1:20:00 General Laura Richardson: If I look at what PRC (People's Republic of China) is investing in the [SOUTHCOM] AOR (Area of Responsibility), over a five year period of 2017 to 2021: $72 billion. It's off the charts. And I can read a couple of the projects. The most concerning projects that I have are the $6 billion in projects specifically near the Panama Canal. And I look at the strategic lines of communication: Panama Canal and the Strait of Magellan. But just to highlight a couple of the projects. The nuclear power plant in Argentina: $7.9 billion. The highway in Jamaica: $5.6 billion. The energy refinery in Cuba, $5 billion. The highway in Peru: $4 billion. Energy dam in Argentina: $4 billion, the Metro in Colombia: $3.9 billion. The freight railway in Argentina: $3 billion. These are not small projects that they're putting in this region. This region is rich in resources, and the Chinese don't go there to invest, they go there to extract. All of these projects are done with Chinese labor with host nation countries'. November 30, 2021 Senate Foreign Affairs Committee Witnesses: Brian A. Nichols, Assistant Secretary of State for Western Hemisphere Affairs, U.S. Department of State Todd D. Robinson, Assistant Secretary of State for International Narcotics and Law Enforcement Affairs, U.S. Department of State Clips 1:47:15 Sen. Ted Cruz (R-TX): I'd like to start with Mexico. I am increasingly concerned that the Mexican government is engaged in a systematic campaign to undermine American companies, and especially American energy companies that have invested in our shared prosperity and in the future of the Mexican people and economy. Over the past five months, Mexican regulators have shut down three privately owned fuel storage terminals. Among those they shut down a fuel terminal and Tuxpan, which is run by an American company based in Texas, and which transports fuel on ships owned by American companies. This is a pattern of sustained discrimination against American companies. And I worry that the Mexican government's ultimate aim is to roll back the country's historic 2013 energy sector liberalisation reforms in favor of Mexico's mismanaged and failing state-owned energy companies. The only way the Mexican government is going to slow and reverse their campaign is if the United States Government conveys clearly and candidly that their efforts pose a serious threat to our relationship and to our shared economic interests. 2:01:50 Sen. Cory Booker (D-NJ): Mr. Nichols, can you can you just be a little more specific about the tactics of the GEC? What are some of the specific activities they're doing? And what more would you like to see them do? Brian A. Nichols: The Global Engagement Center both measures public opinion and social media trends throughout the world. They actively work to counter false messages from our strategic competitors. And they prepare media products or talking points that our embassies and consulates around the hemisphere can use to combat disinformation. I think they do a great job. Obviously, it's a huge task. So the the resources that they have to bring to bear to this limit, somewhat, the ability to accomplish those goals, but I think they're doing vital, vital work. 2:13:30 Todd D. Robinson: We are, INL (International Narcotics and Law Enforcement) are working very closely with the Haitian National Police, the new Director General, we are going to send in advisors. When I was there two weeks ago, I arrived with -- they'd asked for greater ability to get police around the city -- I showed up with 19 new vehicles, 200 new protective vests for the police. The 19 was the first installment of a total of 60 that we're going to deliver to the Haitian National Police. We're gonna get advisors down there to work with the new SWAT team to start taking back the areas that have been taken from ordinary Haitians. But it's going to be a process and it's going to take some time. Sen. Bob Menendez: Well, first of all, is the Haitian National Police actually an institution capable of delivering the type of security that Hatians deserve? Todd D. Robinson: We believe it is. It's an institution that we have worked with in the past. There was a small brief moment where Haitians actually acknowledged that the Haitian National Police had gotten better and was more professional. Our goal, our long term goal is to try to bring it back to that Sen. Bob Menendez: How much time before we get security on the ground? Todd D. Robinson: I can't say exactly but we are working as fast as we can. Sen. Bob Menendez: Months, years? Todd D. Robinson: Well, I would hope we could do it in less than months. But we're working as fast as we can. January 25, 2018 Senate Committee on Armed Services Witnesses: Dr. Henry A. Kissinger, Chairman of Kissinger Associates and Former Secretary of State Dr. George P. Shultz, Thomas W. and Susan B. Ford Distinguished Fellow, Hoover Institution, Stanford University and Former Secretary of State Richard L. Armitage, President, Armitage International and Former Deputy Secretary of State Clips Dr. George Shultz: Small platforms will carry a very destructive power. Then you can put these small platforms on drones. And drones can be manufactured easily, and you can have a great many of them inexpensively. So then you can have a swarm armed with lethal equipment. Any fixed target is a real target. So an airfield where our Air Force stores planes is a very vulnerable target. A ship at anchor is a vulnerable target. So you’ve got to think about that in terms of how you deploy. And in terms of the drones, while such a system cannot be jammed, it would only serve to get a drone—talking about getting a drone to the area of where its target is, but that sure could hit a specific target. At that point, the optical systems guided by artificial intelligence could use on-board, multi-spectral imaging to find a target and guide the weapons. It is exactly that autonomy that makes the technologic convergence a threat today. Because such drones will require no external input other than the signature of the designed target, they will not be vulnerable to jamming. Not requiring human intervention, the autonomous platforms will also be able to operate in very large numbers. Dr. George Shultz: I think there’s a great lesson here for what we do in NATO to contain Russia because you can deploy these things in boxes so you don’t even know what they are and on trucks and train people to unload quickly and fire. So it’s a huge deterrent capability that is available, and it’s inexpensive enough so that we can expect our allies to pitch in and get them for themselves. Dr. George Shultz: The creative use of swarms of autonomous drones to augment current forces would strongly and relatively cheaply reinforce NATO, as I said, that deterrence. If NATO assists frontline states in fielding large numbers of inexpensive autonomous drones that are pre-packaged in standard 20-foot containers, the weapons can be stored in sites across the countries under the control of reserve forces. If the weapons are pre-packaged and stored, the national forces can quickly deploy the weapons to delay a Russian advance. So what’s happening is you have small, cheap, and highly lethal replacing large, expensive platforms. And this change is coming about with great rapidity, and it is massively important to take it into account in anything that you are thinking about doing. June 15, 2017 House Foreign Affairs Subcommittee on Terrorism, Nonproliferation, and Trade Witnesses: Tina Kaidanow, Acting Assistant Secretary, Bureau of Political-Military Affairs, U.S. Department of State Vice Admiral Joseph Rixey, Director, U.S. Defense Security Cooperation Agency Clips 14:40 Tina Kaidanow: Arms Transfers constitute an element of foreign policy. We therefore take into account foreign policy considerations as we contemplate each arms transfer or sale, including specifically, the appropriateness of the transfer in responding to U.S and recipient security needs; the degree to which the transfer supports U.S. strategic foreign policy and defense interests through increased access and influence; allied burden sharing and interoperability; consistency with U.S. interests regarding regional stability; the degree of protection afforded by the recipient company to our sensitive technology; the risk that significant change in the political or security situation of the recipient country could lead to inappropriate end use or transfer; and the likelihood that the recipient would use the arms to commit human rights abuses or serious violations of international humanitarian law, or retransfer the arms to those who would commit such abuses. As a second key point, arms transfers support the U.S. Defense industrial base and they reduce the cost of procurement for our own U.S. military. Purchases made through the Foreign Military Sales, known as the FMS, system often can be combined with our Defense Department orders to reduce unit costs. Beyond this, the US defense industry directly employs over 1.7 million people across our nation. 20:20 Vice Admiral Joseph Rixey: FMS is the government-to-government process through which the U.S. government purchases defense articles, training, and services on behalf of foreign governments, authorized in the Arms Export Control Act. FMS is a long standing security cooperation program that supports partner and regional security, enhances military-to-military cooperation, enables interoperability and develops and maintains international relationships. Through the FMS process, the US government determines whether or not the sale is of mutual benefit to us and the partner, whether the technology can and will be protected, and whether the transfer is consistent with U.S. conventional arms transfer policy. The FMS system is actually a set of systems in which the Department of State, Department of Defense, and Congress play critical roles. The Department of Defense in particular executes a number of different processes including the management of the FMS case lifecycle which is overseen by DSCA (Defense Security Cooperation Agency). Technology transfer reviews, overseen by the Defense Technology Security Administration, and the management of the Defense Acquisition and Logistics Systems, overseen by the Office of the Undersecretary of Defense for Acquisition, Technology and Logistics, and the military departments. This process, or a version of it, also serves us well, in the DoD Title X Building Partnership Capacity arena, where the process of building a case, validating a requirement and exercising our U.S. acquisition system to deliver capability is modeled on the FMS system. I want to say clearly that overall the system is performing very well. The United States continues to remain the provider of choice for our international partners, with 1,700 new cases implemented in Fiscal Year 2016 alone. These new cases, combined with adjustments to existing programs, equated to more than $33 billion in sales last year. This included over $25 billion in cases funded by our partner nations' own funds and approximately $8 billion in cases funded by DOD Title X program or Department of State's Appropriations. Most FMS cases move through the process relatively quickly. But some may move more slowly as we engage in deliberate review to ensure that the necessary arms transfer criteria are met. 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In December, the House Oversight and Reform Committee released a final report from their investigation into allegations of sexual assault committed by Washington Commanders team owner Dan Snyder. In this episode, you will hear the testimony and discover what the NFL did - or didn’t do - to punish the people who sexually harassed their employees. You will also learn that in the process of researching this episode, the Congressional Dish team discovered that the hearings related to this investigation, among others, have recently vanished from the committee archives, raising questions about how that happened and what needs to be done to prevent our sources from being disappeared. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Washington Commanders-Dan Snyder Background Adam Kilgore and Roman Stubbs. Jul 9, 2020. The Washington Post. Scott Allen. May 24, 2019. The Washington Post. Full House Committee on Oversight and Reform Report Dec 8, 2022. The New York Times. NFL Investigation Sally Jenkins. Jul 1, 2021. The Washington Post. Jul 1, 2021. NFL. Dan Snyder Misconduct Will Hobson and Liz Clarke. Dec 14, 2021. The Washington Post. Will Hobson et al. Jul 2, 2021. The Washington Post. Nicki Jhabvala and Mark Maske. Jun 29, 2021. The Washington Post. Will Hobson et al. Dec 22, 2020. The Washington Post. Will Hobson et al. Aug 26, 2020. The Washington Post. Will Hobson and Liz Clarke. Jul 16, 2020. The Washington Post. Dan Snyder Money Edward Sutelan. Nov 14, 2022. The Sporting News. Lauren Schwahn. Dec 2, 2022. Nerd Wallet. Dave Portnoy Superbowl Arrest Danny Small. Feb 4, 2019. Elite Sports NY. NFL Ownership and Potential Commanders Sale Scott Polacek. Feb 8, 2023. Bleacher Report. Joe Rivera. Nov 2, 2022. The Sporting News. Wikipedia. Past Congressional Oversight of Sporting Organizations Associated Press. Jul 28, 2007. MSNBC via the Wayback Machine. House Government Reform and Oversight Committee (109th Congress). March 17, 2005. C-SPAN. NFL Nonprofit Status and Lobbying IRS. Open Secrets. Matt Johnson. Jul 15, 2022. Sportsnaut. House Control Walter Shapiro. Feb 9, 2023. The New Republic. Laws Bills Hearings June 22, 2022 House Oversight and Reform Committee Witness: Rodger Goodell:, Commissioner, National Football League Clips 3:05 Rep. Carolyn Maloney (D-NY): We also invited Daniel Snyder to testify today, but rather than show up and take responsibility for his actions, he chose to skip town. Apparently Mr. Snyder is in France, where he has docked his luxury yacht near a resort town. 3:45 Rep. Carolyn Maloney (D-NY): According to top executives, he fired women, but not men, who engaged in relationships with other employees while defending male executives accused of sexual harassment. And he kept employees from speaking out through a culture of fear. As one longtime employee described Mr. Snyder's tactics: "If you don't obey, intimidate. If you still don't obey, terminate." Finally, the employee added, "If that didn't work, buy them off." The Committee has also uncovered evidence that Mr. Snyder conducted a shadow investigation to target his accusers, pin the blame on others, and influence the NFL's own internal review. He filed phony lawsuits to collect private phone records, emails, and text messages. 7:10 Rep. Carolyn Maloney (D-NY): Our first bill, the Accountability for Workplace Misconduct Act, will require employers to conduct thorough investigations and share the outcome with victims, and it will prohibit employers from using Non-disclosure Agreements to conceal workplace misconduct -- one of Dan Snyder's favorite tactics. Our second bill is the Professional Images Protection Act. Our investigation confirmed that the Commanders secretly created lewd videos of cheerleaders for the private enjoyment of Dan Snyder. That is despicable and our bill will create notice and consent requirements for employers who use their employees' professional images. 23:10 Rodger Goodell: Hi I'm Roger Goodell commissioner of the National Football League and I'm here today to discuss the NFL's efforts to promote safe and respectful workplaces, including at the Washington Commanders. 23:25 Rodger Goodell: The Commanders are one of 32 NFL clubs, each of which is managed by its ownership and executives and have their own workplaces and policies. Two years ago, the Commanders asked me to recommend independent counsel to address workplace issues and recommend changes to improve the workplace culture. We identified several candidates and the club selected Beth Wilkinson, a distinguished former Federal Prosecutor. Approximately six weeks later, the club asked my office to assume oversight of the Wilkinson firm's work. The Wilkinson firm conducted a comprehensive review of the workplace at the club, interviewing more than 150 witnesses. As a result, we gained a clearer understanding of what the workplace had been at the Commanders, how it had begun to change, and what further steps were needed to support our ultimate goal of transforming that workplace to one that is safe and productive for all of its employees. 25:05 Rodger Goodell: It is clear to me that the workplace in Washington was unprofessional and unacceptable in numerous respects: bullying, widespread disrespect toward colleagues, use of demeaning language, public embarrassment and harassment. Moreover, for a prolonged period of time, the Commanders had a woefully deficient HR function, particularly with respect to reporting practices and record keeping. As a result, we imposed unprecedented discipline on the club, monetary penalties of well over $10 million, and requirements that the club implement a series of recommendations and allow an outside firm to conduct regular reviews of their workplace. In addition, for the past year, Daniel Snyder has not attended league or committee meetings, and to the best of my knowledge has not been involved in day to day operations at the Commanders. The cheerleader program has been entirely revamped and it's now a co-ed dance team under new leadership. And the most recent independent workplace report, which we have shared with the Committee, confirms that an entirely new, highly skilled and diverse management team is in place, and that there has been, "substantial transformation of the team's culture, leadership and human resources practices." 26:35 Rodger Goodell: We did not receive a written report of Miss Wilkinson's findings for compelling reasons that continue to this day. A critical element of any workplace review is broad participation by both current and former employees. Encouraging employees to come forward and share their experiences, which were frequently painful and emotional, was essential to identifying both the organization's failures and how to fix them. To encourage this participation, Ms. Wilkinson promised confidentiality to any current or former employee. For this reason, shortly after we assumed oversight of Miss Wilkinson's work, we determined that a comprehensive oral briefing was best to allow us to receive the information necessary both to evaluate the workplace as it was, and to ensure that the team put in place the policies and processes to reform that workplace, all while preserving the confidentiality of those who participated in the investigation. 28:35 Rodger Goodell: When the committee has asked questions or requested documents which could violate witness privacy, we have asserted privilege. We will continue to do so to safeguard our commitment. 28:45 Rodger Goodell:: Earlier this year, the committee heard testimony from several former employees that included new and direct allegations against Mr. Snyder. We properly engaged former U.S. Attorney Mary Jo White to investigate those allegations. Because those new allegations were brought to the committee in a public setting, we will share the results of that investigation when it's completed and will take additional disciplinary action if warranted. 29:50 Rodger Goodell: Finally, I want to address the Committee's review of Non-disclosure Agreements. Our policies do not allow a club to use an NDA to bar someone from participating in a league investigation, and nobody who wished to speak to the Wilkinson firm was prevented from doing so by an NDA. 36:45 Rep. Carolyn Maloney (D-NY): Mr. Snyder has not been held accountable. His refusal to testify sends a clear message that he is more concerned about protecting himself than coming clean with the American people. If the NFL is unwilling or unable to hold Mr. Snyder accountable, then I am prepared to do so. That is why I am announcing now my intent to issue a subpoena for the testimony of Mr. Snyder for a deposition next week. The committee will not be deterred in its investigation to uncover the truth of workplace misconduct at the Washington Commaders. 38:20 Rodger Goodell: While I have the microphone I'd also like to say, respectfully, that Dan Snyder has been held accountable. As I mentioned in the opening, he faced unprecedented discipline, including financial fines, being removed and away from the team at his request for a period of time up to the year now already, and secondly, and more importantly, transformation of that organization that is going on in the last year, which is really important. 42:25 Rep. Virginia Foxx (R-NC): This committee has no jurisdiction over private entities. Our jurisdiction is on government entities. 1:10:40 Rep. Raja Krishnamoorthi (D-IL): Now, sir, you had mentioned that the reason for the press release as opposed to a detailed finding, as you had in the other cases was because of privacy concerns. Isn't that right? Rodger Goodell: That was one of the issues. Yes. Rep. Raja Krishnamoorthi (D-IL): However, I have this 148 Page Miami Dolphins harassment report that you did where you have redacted the names of various individuals out of privacy concerns. And so it is possible to release a detailed report and at the same time protect people's privacy, yet you chose not to do so in this particular case with the Commanders. Rep. Glenn Grothman (R-WI): Study after study shows there is not systemic racism in our police departments. There is a narrative out there, for example, who to this day mislead the public as to what happened in Ferguson. The Black Lives Matter movement fanned the flames out there even though Barack Obama's own Justice Department found that shooting was justified and you have kind of piled on with the narrative that we have a fundamental problem. Rep. Jackie Speier (D-CA): So non disclosure agreements by each of your various teams are not being used. Is that what you're saying? Rodger Goodell: No, I'm not saying that at all. Rep. Carolyn Maloney (D-NY): The gentlelady's time has expired. The gentleman may answer her question. Rodger Goodell: I'm not saying that. State by state...our teams operate in different states that have different laws. So the federal legislation is something that we're willing to work with the Committee on it. February 3, 2022 House Oversight and Reform Committee Witnesses: Emily Applegate, Former Marketing Coordinator, Washington Commanders Brad Baker, Former Manager and Producer of Video, Washington Commanders Melanie Coburn, Former Director of Marketing, Cheerleaders, Washington Commanders Rachel Engelson, Former Director of Marketing and Client Relations, Washington Commanders Tiffani Johnston, Former Manager of Marketing, Washington Commanders Ana Nunez, Former Coordinator of Business Development, Washington Commanders Clips 9:45 Rep. James Comer (R-KY): Instead of adhering to our committee's mission to root out waste, fraud, and abuse and mismanagement in the federal government, Democrats instead are holding a roundtable about the work culture in one single private organization. 10:00 Rep. James Comer (R-KY): Make no mistake, no one should face harassment at work and bad actors must be held accountable. But it's unclear why examining harassment that took place a decade ago in one private workplace warrants oversight from this committee. This issue is best handled by human resources and the courts, not Congress. 10:25 Rep. James Comer (R-KY): Further, because of the bravery of the women testifying before us today, the culture of the franchise has completely turned around. And I want to thank the ladies for being here today. After the NFL investigation into the football team last year, Commissioner Roger Goodell levied the highest fine on an owner in the history of the sport, and suspended the owner from team's operations indefinitely. In addition, the commissioner made a series of recommendations to the team to improve its culture. This week, an independent audit confirmed those recommendations are working. Madam Chair, I'd like to submit the audit for the record. 11:30 Rep. James Comer (R-KY): Because of the Commissioner's leadership, bad actors have been held accountable and the culture at the football team has improved. So why are Democrats utilizing committee resources today to examine an issue that is on the path to resolution and is outside this committee's jurisdiction? 18:15 Rep. Carolyn Maloney (D-NY): Our first participant is Melanie Coburn who was a cheerleader for the Washington Football Team from 1997 to 2001 and was the director of Marketing and Marketing Coordinator from 2001 to 2011. 18:30 Rep. Carolyn Maloney (D-NY): Then we will hear from Tiffany Johnston, who was a cheerleader for the Washington football team from 2007 to 2008, and a Marketing Manager and Marketing and Events Coordinator for Club Level Tickets from 2002 to 2008. 18:50 Rep. Carolyn Maloney (D-NY): Next we will hear from Brad Baker, who was a Producer at the Washington football team from 2007 to 2008 and a Video Production Manager from 2008 to 2009. 19:05 Rep. Carolyn Maloney (D-NY): Next we will hear from Ana Nunez, who was a Coordinator of Business Development and Client Service and an Account Executive at the Washington football team from 2015 to 2019. 19:20 Rep. Carolyn Maloney (D-NY): Next, we will hear from Rachel Engelson, who started as an intern for the Washington football team in 2010 and then became a Customer Service Representative, a Manager of Premium Client Services, the Director of Marketing and Client Relations, and the Director of Client Services from 2011 to 2019. 19:40 Rep. Carolyn Maloney (D-NY): Finally, we will hear from Emily Applegate who was a Marketing Coordinator, Premium Client Services Coordinator, and Ticket Sales Representative at the Washington Football Team from 2014 to 2015. 21:00 Melanie Coburn: At cheerleader auditions one year, Dan Snyder ordered the director of the squad to parade the ladies onto the field while he and his friends gawked from a suite through binoculars. The women were directed to turn around slowly, as if they were cattle being examined for sale. One of the women cried on the sidelines because she didn't understand what was happening. 21:30 Melanie Coburn: Over the years, it became clear that Dan Snyder and his male executives were far too interested in the cheerleaders. Eventually, Dan himself had the final say of who made the team and who got months in the calendar. Unbelievably, he requested binders of photographs for auditions and the calendar so that he could choose who to cut based on looks, not talent. One year he cut 10 veterans who otherwise would have made the team based on their skill and experience, evidently because they weren't the prettiest in his opinion. It was known as the Tyson's massacre. 22:10 Melanie Coburn: During calendar production one year, a male Executive took unedited prints off the graphic designer's desk despite my warnings to protect them. One of these compromising full size photos was one of the team's most loyal employees, and my dear friend. She's sitting next to me today. I'm still haunted by this. And at the time, there was no HR department or any reporting mechanism for this abusive behavior. 23:05 Melanie Coburn: I felt compelled to come forward publicly when I read the second shocking [Washington] Post article that revealed two lewd videos of the cheerleaders that were secretly created. I was physically ill when I read that piece. "The Good Bits" videos produced at the behest of Dan Snyder were secretly made from footage taken at our calendar shoots. We trusted the production team to capture footage and keep it safe. Little did we know they were zooming in on private parts and keeping cameras rolling during costume changes. I've cried with the women in these videos as they explain the horror of seeing themselves in what is essentially a soft porn video soundtracked to Dan Snyder's favorite bands. These women remain traumatized. 24:35 Melanie Coburn: Dan Snyder rules by fear. We've seen Dan's vindictive wrath for years, such as when he nearly bankrupted the Washington City Paper for an unflattering article. He sent private investigators to the homes of a dozen former cheerleaders last year and I got calls from these terrified women who didn't understand why PIs were showing up on their doorsteps. He offered hush money to a group of us in exchange for our silence last February, but we declined. This was offensive, and certainly felt like intimidation and witness tampering to us. 26:10 Tiffani Johnston: Hi, my name is Tiffani Johnston. I appreciate you all for taking the time to hear about the constant workplace harassment that occurred at the Washington Football Team for over two decades. I personally experienced it multiple times during my eight year tenure as both a cheerleader and a marketing manager. 26:50 Ana Nunez: Hi, my name is Ana Nunez and I worked in sales for the Washington football team for almost four years. 28:20 Tiffani Johnston: I learned on one specific occasion that when I was asked by my boss to attend a networking event, and oh to dress cute, it was actually an orchestration by him and Dan Snyder to put me in a compromising sexual situation. I learned that placing me strategically by the owner at a work dinner after this networking event was not for me to discuss business, but to allow him, Dan Snyder, to place his hand on my thigh under the table. I learned how to discreetly remove a man's unwanted hand from my thigh at a crowded dinner table at a busy restaurant to avoid a scene. I learned that job survival meant I should continue my conversation with another coworker, rather than call out Dan Snyder right then in the moment. I also learned later that evening how to awkwardly laugh when Dan Snyder aggressively pushed me towards his limo with his hand on my lower back, encouraging me to ride with him to my car. I learned how to continue to say no, even though a situation was getting more awkward, uncomfortable and physical. I learned that the only reason Dan Snyder removed his hand from my back and stop pushing me towards his limo was because his attorney intervened and said "Dan, Dan, this is a bad idea. A very bad idea, Dan." I learned that I should remove myself from Dan's grip while his attorney was distracting him. I also learned at that moment during an unspoken conversation between my boss and I that my boss was not there to look out for me. He was there to listen to any directive his boss, Dan Snyder, had given to him, at my cost. The next day I learned, when I told a senior coworker about Dan Snyder's sexual advance, that I should "not repeat this story to anyone outside this office door." That was when I also learned there was no one to go to about Dan Snyder's advance, no path to record the incident. So I learned to move on. 30:15 Tiffani Johnston: In the last couple of years, I learned that Dan Snyder, via Senior Vice President, demanded my unedited, enlarged lingerie calendar photo be sent to his office. I learned that this demand was made urgently because they knew that the graphic artists was getting ready to Photoshop my personal areas before the edited proof went before all of the senior VPs and Dan Snyder for approval. 31:40 Brad Baker: My name is Brad Baker and I worked for the Washington Football Team from 2007 to 2009 in the Video Production Department. 32:40 Brad Baker: In the early summer of 2008, a normal production meeting with the video department was wrapping up when Larry Michael, then Executive Producer of Media and one of Snyder's top lieutenants, asked me and two other male producers to stay behind and shut the door. The female members of the department were dismissed. Larry Michael told us that the owner had a special project for us and needed us to edit together a video of the good bits from our cheerleader calendar video shoot. It wasn't hard to put two and two together. Larry Michael, one of Snyder's top confidants, has tasked us with producing a video for Schneider of sexually suggestive footage of cheerleaders, obviously unbeknownst to any of the women involved. One of the senior producers said he'd take care of it and later on, while passing through the editing suite, I saw several images on both the editing monitor and the monitor of our tape deck that featured the cheerleaders posing for their photoshoot, but it was like outtakes, and their breasts and pubic areas were exposed. It became crystal clear that my worst suspicions were true. The video department had been told to edit together lewd footage of the cheerleaders at the request of Dan Snyder. 34:30 Brad Baker: The NFL has refused to release the report of the Wilkinson investigation, even though myself and over 100 other employees were asked by the League to speak to the Wilkinson firm. We all participated because we thought the NFL wanted to know the truth. We believe that the toxic workplace culture and the serious harm it caused would finally become public and that the investigation would end with some kind of report. I mean, they were able to release a report that was 243 pages long...243 pages long...on the PSIs of footballs, the pounds per square inch of footballs. Surely, surely, women being sexually harassed and lewd outtakes videos of female employees created without their consent could muster up some kind of written report right 43:40 Rachel Engelson: I was only 24 and the man who sexually harassed me was old enough to be my father. And he also was considered the voice of the team in the public sphere. So to me, the power that he held in his position and his close personal relationship with Daniel Snyder was enough for me to reconsider anything. And at the time, I didn't know and realize that 55% of victims experienced retaliation after speaking up or making a claim. I still decided to tell my boss about my harasser's public comments about my appearance, his unwanted kisses on the cheek, and emails about special gifts he expected from me. When I told my boss, we agreed that nothing would happen if I reported it to the person who was supposedly running HR at that point. And so my boss called my harasser on the phone. Mind you, we were in two different locations. I was in Maryland and he was in Virginia, so this had to be done via phone call. I was in the room when my boss called him to tell him to leave me alone. And it's a memory I'll never forget, because I distinctly remember hearing my harasser yell through the phone, "what the fuck is she thinking?" and I just kind of muted everything after that. So fearing further harassment and retaliation, I took to hiding from him at public events. I strategically would place myself between colleagues so he couldn't get near me. And I just felt humiliated to have to hide in plain sight in front of all of my colleagues, my clients, and I was just so frustrated that I had to avoid company functions for fear that I would experience sexual harassment again. And most of all, it made me feel worthless. All the hard work I put into my work and the team and I was reduced to my appearance and not my value as an employee. The second time I decided to report harassment was with the arrival of a new executive team, similar to Ana, that was specifically hired to help change the business. I told them about the public comments about my appearance, the unwanted kisses on the cheek, the email, as well as the time at training camp, I was sexually assaulted by the same man that I had previously reported. Those executives were appalled at my treatment and had good intentions to affect change, but they were all fired within six months of reporting this. And after they were fired, and this was reportedly because the old guard at the Washington football team did not want change, I just felt like I had zero protection. I didn't want to go back to avoiding people, clients, events, and even my own job, to keep away from my harasser. So I resigned from my position without another job lined up so I wouldn't have to deal with this. 48:35 Emily Applegate: My name is Emily Applegate. I began working for the Washington Football Team exactly eight years ago as of tomorrow. While my time with the team was short, my experiences there have altered the structure of my entire life. 49:10 Emily Applegate: On a daily basis, I was sexually harassed by my direct boss, the Chief Marketing Officer of the team. Every day, I was forced into uncomfortable conversations about my body and about my appearance. I was told to wear tight outfits to events, so clients had something to look at. I was asked invasive questions about my dating life, specifically if I was interested in older men, because my boss was significantly older than me. I was told I wasn't allowed to wear flat shoes because he liked the way my body looked better when I was in high heels. My photograph was taken without my permission and passed to other executives throughout the team by my boss. 50:20 Emily Applegate: To address the most common question that I get, "why didn't you report to Human Resources?" I didn't report to Human Resources because Dan Snyder created a culture where this behavior was accepted and encouraged. 53:35 Rep. Carolyn Maloney (D-NY): July 1, 2021, the NFL issued a press release announcing the outcome of its investigation into the Washington football team stating and I quote, "none of the managers or executives identified as having engaged in this conduct is still employed at the club." 54:10 Rep. Carolyn Maloney (D-NY): Rep. Carolyn Maloney (D-NY): Is the NFL's statement that wrongdoers have been removed from the Washington Football Team accurate? Tiffani Johnston: Absolutely not. It all started from the top with Dan Snyder, every day, on every single issue. 55:05 Rep. Carolyn Maloney (D-NY): Miss Johnston, I received a letter dated today from Jason Friedman, a former Vice President who worked for the Washington football team for over 20 years, and here is the letter. He was apparently with you the night that Dan Snyder personally harassed you. And here's what he said. He has never told his story publicly before and I want to quote now from his letter. He says "I witnessed Dan Snyder grab the arm of my coworker, Tiffany Johnston, and attempt to pull her into his limousine. This took place over a dinner in Washington DC. I was shocked. Thankfully, Tiffany was able to quickly pull away." 57:35 Rep. Virginia Foxx (R-NC): The proper venue to explore these types of claims is in the courtroom, not before this committee. To my knowledge, there's no pending litigation regarding the events we've heard discussed today, nor does this committee have legislative jurisdiction over this issue. It concerns me that this committee is choosing to spend its limited time having this discussion on the NFL and second guessing decisions when there are multiple Biden-caused catastrophes that desperately need our attention and oversight. And the witnesses here have begged for us to do something and nothing is going to happen as a result of this committee. That's cruel to these people. 1:06:50 Rep. Ralph Norman (R-SC): What do you want us to do? What should Congress do? I can't legislate bad behavior to stop it. Just quickly, what would you do. 1:09:05 Emily Applegate: Thank you for asking this question, actually, because I think it's very important due to the fact that multiple members of the committee has now said that this is not the appropriate venue for us to be sharing the story and that we shouldn't be in the courtroom, things like that. You guys have the opportunity to take this issue on, pass legislation that would help other employees throughout the United States be able to report so they have that opportunity to be in the courtroom, and not only the opportunity to be in the courtroom, but then also to find some justice, because I think we can all agree that a lot of people go through the criminal justice system, and they never see any type of justice when it comes to sexual harassment or sexual assault. So until those two things are taken more seriously by Congress, then nothing is going to happen. But that's why we're here today to ask you to do your job and pass those legislation laws. 1:09:55 Rep. Raja Krishnamoorthi (D-IL): To my dear colleagues on the other side, I just want to point out that we legislate the rules, regulations, and laws that govern workplace safety, as well as non disclosure agreement laws and so forth. 1:15:05 Rep. Yvette Herrell (R-NM): Mr. Chair, this hearing is a farce. And we should be looking at inflation, the economy, Afghanistan, the border crisis and so many other issues that are important to our nation and to our constituents. Instead, we are spending time looking at a single business, investigating it for things that happened a decade ago. And let me restate again the owners of the team fired those responsible. In fact, the owners paid the largest fine ever imposed by the NFL and was suspended indefinitely from operations. This roundtable is ridiculous and it is an abuse of power. 1:35:50 Rep. Debbie Wasserman Schultz (D-FL): You might be aware that part of the reason that the NFL is such a profitable business is that Congress approved legislation in 1961 that allowed an antitrust exemption where professional football teams could pull together when negotiating radio and television contracts. They also receive lucrative federal tax exemptions and taxpayer dollars in the hundreds of millions to build football stadiums that make them billions. Do you believe Congress should be in the business of protecting an organization that puts the interests of billionaire owners above hundreds of women who experienced harassment and abuse? And do you think that those benefits, that we should consider revoking them if they do not make changes to ensure that you have protections when it comes to human resources, sexual assault accountability, making sure that there is an equitable and safe workplace for their employees? 1:41:35 Rep. Hank Johnson (D-GA): Miss Coburn in your op ed, you mentioned that after the secret "good bits" videos hit the news that you and 40 or so other cheerleader alumni came together and some of you were able to mediate a settlement. Were those who settled, were they barred from going to court because of a forced arbitration agreement? Do you know? Melanie Coburn: Yes, many of when those videos were uncovered, that's when I came out publicly. I had the strength and courage to organize them. And yes, they all, they they got together and there was a, you know, mediation and there was a settlement and along with that settlement, they were forced to sign NDAs. 1:45:10 Rep. Jackie Speier (D-CA): Congress can do a lot about this. Next week, all of my colleagues on the other side of the aisle who aren't here now could vote for the bill by Cheri Bustos that is going to require that no NDAs can be forced upon employees for sexual harassment or sexual assault. That would go a long way. We could also investigate the tax exempt status of the National Football League. We gave them that tax exempt status. Evidently, there was $8 billion received last year that was then divided up among the various teams to the tune of about $250 million a team. 1:50:10 Rep. Byron Donalds (R-FL): We have a responsibility here of regulating, specifically, the United States economy when it comes to interstate commerce, to regulating our borders, to actually making sure we coin sound money, that we appropriate for the necessary functions of government. But one of the things that the Constitution of these United States actually precludes us from doing is interfering directly in the affairs of individual businesses, no matter how abhorrent they may be. Now, if there's criminality involved, then that is where the justice system, specifically in this case the civil system, takes those matters. December 18, 2022 @TheGhettoGronk on Twitter Cover Art Design by Only Child Imaginations Music Presented in This Episode by
Live Nation and Ticketmaster merged over a decade ago and Congress is concerned - for good reason - that the company is exerting monopoly powers over the live event industry. In this episode, learn how the merger was allowed to happen in the first place, the problems that industry participants and competitors are having with the company, and what Congress is thinking of doing about it. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! We're Not Wrong Live Show Wednesday, March 1 | 8:00 PM PSTPianoFight Main Stage San Francisco Background Sources Event Ticketing Market Apr 12, 2018. U.S. Government Accountability Office. Live Nation Overview Open Secrets. Open Secrets. Ticketmaster August Brown. Jan 24, 2023. The Seattle Times. Taylor Swift Ashley Cullins. Dec 5, 2022. The Hollywood Reporter. Caitlin Huston. Nov 18, 2022. The Hollywood Reporter. Caitlin Huston. Nov 17, 2022. The Hollywood Reporter. Bad Bunny Maria Abi-Habib. Dec 16, 2022. The New York Times. Dylan Smith. Apr 15, 2021. Digital Music News. BTS Dave Clark. Mar 3, 2022. Ticket News. Fengyen Chiu. Oct 11, 2021. Republic World. Adele Dave Clark. Dec 8, 2021. Ticket News. Pixies Steve Knopper. Nov 1, 2010. Wired. Bruce Sprintsteen Alex Young. Nov 18, 2022. Consequence Sound. Daniel Kreps. Feb 4, 2009. Rolling Stone. Pearl Jam Shawn Garrett. Nov 17, 2022. KIRO 7 News. Eric Boehlert. Dec 28, 1995. Rolling Stone. Reuters. Jul 1, 1994. The New York Times. Ticketmaster Scalper Program Dave Clark. Jul 8, 2021. Ticket News. Rachel Houlihan et al. Oct 18, 2018. CBC News. Dave Seglins et al. Sep 19, 2018. CBC News. Antitrust Policy and Enforcement Doha Mekki. Jan 26, 2023. U.S. Department of Justice. John Kwoka. Dec 19, 2018. Washington Center for Equitable Growth. Jul 5, 2007. Sheppard Mullin. Alan S. Middleton. Jul 3, 2007. Davis Wright Tremaine LLP. Richard B. Blackwell. March 1972 *13(3). William & Mary Law Review. Mergers and Monopoly Power Open Markets Institute. Live Nation-Ticketmaster Merger U.S. Department of Justice. (July 2010) (January 2020) (January 2020) Kroger-Albertsons Merger Julie Creswell. Jan 23, 2023. The New York Times. Russell Redman. Dec 6, 2022. Winsight Grocery Business. Laws Bills Sponsor: Amy Klobuchar (D-MN) Audio Sources January 24, 2023 Senate Committee on the Judiciary Witnesses: Joe Berchtold, President and Chief Financial Officer, Live Nation Entertainment, Inc. Jack Groetzinger, Chief Executive Officer, SeatGeek, Inc. Jerry Mickelson, Chief Executive Officer and President, Jam Productions, LLC Sal Nuzzo, Senior Vice President, The James Madison Institute Vice President for Legal Advocacy, American Antitrust Institute Clyde Lawrence, Singer-songwriter, Lawrence February 24, 2009 Senate Committee on the Judiciary, Subcommittee on Antitrust, Competition Policy and Consumer Rights Witnesses: Irving Azoff, Chief Executive Officer, Ticketmaster Entertainment, Inc. Jerry Mickelson, Chairman and Executive Vice President, JAM Productions Michael Rapino, President and Chief Executive Officer, Live Nation, Inc. David A. Balto, Senior Fellow, Center for American Progress Action Fund Seth Hurwitz, Co-Owner, I.M.P. Productions and 9:30 Club YouTube Cover Art Design by Only Child Imaginations Music Presented in This Episode by
The January 6th Committee investigation is over and four criminal charges against former President Donald Trump have been referred to the Justice Department by the Committee. In this episode, hear a summary of 23 hours of testimony and evidence presented by the Committee which prove that former President Trump went to extraordinary and illegal lengths to remain President, despite losing the 2020 Election. Executive Producers: Michael Constantino, Shelley Stracener, Daniel Slaughter, and Christine Brendle Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Final Committee Report 117th Congress Second Session. Dec 22, 2022. U.S. Government Publishing Office. The January 6th Committee Robert Draper and Luke Broadwater. Dec 23, 2022. The New York Times Magazine. 2020 Election Litigation Oct 27, 2022. The American Bar Association. Daniel Funke. Feb 9, 2021. PolitiFact. January 6th Security Failures February 2022. U.S. Government Accountability Office. Electors and Vote Certification Process Domenico Montanaro. Dec 14, 2020. NPR. May 11, 2021. U.S. National Archives. John Eastman Deepa Shivaram. Jun 17, 2022. NPR. The Federalist Society. Trump and Georgia Matthew Brown. Nov 22, 2022. The Washington Post. Amy Gardner and Paulina Firozi. Jan 5, 2021. The Washington Post. AG Bill Barr Interview Mike Balsamo. Dec 11, 2020. Dec 1, 2020. The Associated Press. Past Electoral Vote Challenges Joseph A. Gambardello. Jun 29, 2022. FactCheck.org. Ted Barrett. Jan 6, 2005. CNN. Fake Electors Amy Sherman. Jan 28, 2022. PolitiFact. Evan Perez and Tierney Sneed. Jan 26, 2022. CNN. Mar 2, 2021. American Oversight. Censure of Cheney & Kinzinger Feb 4 2022. The New York Times. Audio Sources December 19, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol October 13, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Featured speakers: Kayleigh McEnany, Former White House Press Secretary Molly Michael, Former Executive Assistant to the President Pat Cipollone, Former White House Counsel Clips Rep. Liz Cheney (R-WY): Why would Americans assume that our Constitution, and our institutions, and our Republic are invulnerable to another attack? Why would we assume that those institutions will not falter next time? A key lesson of this investigation is this: Our institutions only hold when men and women of good faith make them hold, regardless of the political cost. We have no guarantee that these men and women will be in place next time. Any future president inclined to attempt what Donald Trump did in 2020 has now learned not to install people who could stand in the way. And also please consider this: The rulings of our courts are respected and obeyed, because we as citizens pledged to accept and honor them. Most importantly, our President, who has a constitutional obligation to faithfully execute the laws, swears to accept them. What happens when the President disregards the court's rulings is illegitimate. When he disregards the rule of law, that my fellow citizens, breaks our Republic. January 6 Committee Lawyer: To your knowledge, was the president in that private dining room the whole time that the attack on the Capitol was going on? Or did he ever go to, again only to your knowledge, to the Oval Office, to the White House Situation Room, anywhere else? Kayleigh McEnany: The the best of my recollection, he was always in the dining room. January 6 Committee Lawyer: What did they say, Mr. Meadows or the President, at all during that brief encounter that you were in the dining room? What do you recall? Gen. Keith Kellogg: I think they were really watching the TV. January 6 Committee Lawyer: Do you know whether he was watching TV in the dining room when you talked to him on January sixth? Molly Michael: It's my understanding he was watching television. January 6 Committee Lawyer: When you were in the dining room in these discussions, was the violence of capital visible on the screen on the television? Pat Cipollone: Yes. Rep. Adam Kinzinger (R-IL): A federal appeals court in Pennsylvania wrote, quote, "charges require specific allegations and proof. We have neither here." A federal judge in Wisconsin wrote, quote, "the court has allowed the former President the chance to make his case and he has lost on the merits." Another judge in Michigan, called the claims quote, "nothing but speculation and conjecture that votes for President Trump were either destroyed, discarded or switched to votes for Vice President Biden." A federal judge in Michigan sanctioned nine attorneys, including Sidney Powell, for making frivolous allegations in an election fraud case, describing the case as a historic and profound abuse of the judicial process. Recently, a group of distinguished Republican election lawyers, former judges and elected officials issued a report confirming the findings of the courts. In their report entitled "Lost, Not Stolen," these prominent Republicans analyzed each election challenge and concluded this: Donald Trump and his supporters failed to present evidence of fraud or inaccurate results significant enough to invalidate the results of the 2020 Presidential Election. On December 11, Trump's allies lost a lawsuit in the US Supreme Court that he regarded as his last chance of success in the courts. Alyssa Farah: I remember maybe a week after the election was called, I popped into the Oval just to like, give the President the headlines and see how he was doing and he was looking at the TV and he said, "Can you believe I lost to this effing guy?" Cassidy Hutchinson: Mark raised it with me on the 18th and so following that conversation we were in the motorcade ride driving back to the White House, and I said, like, "Does the President really think that he lost?" And he said, "A lot of times he'll tell me that he lost, but he wants to keep fighting it and he thinks that there might be enough to overturn the election, but, you know, he pretty much has acknowledged that he, that he's lost. July 12, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Jason Van Tatenhove, Former Oath Keepers Spokesperson Stephen Ayres, January 6th Defendant Clips Rep. Stephanie Murphy (D-FL): According to White House visitor logs obtained by the Committee, members of Congress present at the White House on December 21 included Congressmen Brian Babin (TX), Andy Biggs (AZ), Matt Gaetz (FL), Louie Gohmert (TX), Paul Gosar (AZ), Andy Harris (MD), Jody Hice (R-GA), Jim Jordan (OD), and Scott Perry (PA). Then Congresswoman-elect Marjorie Taylor Greene (GA) was also there. Rep. Stephanie Murphy (D-FL): We've asked witnesses what happened during the December 21 meeting and we've learned that part of the discussion centered on the role of the Vice President during the counting of the electoral votes. These members of Congress were discussing what would later be known as the "Eastman Theory," which was being pushed by Attorney John Eastman. June 28, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Cassidy Hutchinson, Former Special Assistant to the President and Aide to the Chief of Staff Clips 9:10 Rep. Liz Cheney (R-WY): Today's witness, Ms. Cassidy Hutchinson, is another Republican and another former member of President Trump's White House staff. Certain of us in the House of Representatives recall that Ms. Hutchinson once worked for House Republican whip Steve Scalise, but she is also a familiar face on Capitol Hill because she held a prominent role in the White House Legislative Affairs Office, and later was the principal aide to President Trump's Chief of Staff, Mark Meadows. 10:10 Rep. Liz Cheney (R-WY): In her role working for the White House Chief of Staff, Miss Hutchinson handled a vast number of sensitive issues. She worked in the West Wing, several steps down the hall from the Oval Office. Miss Hutchinson spoke daily with members of Congress, with high ranking officials in the administration, with senior White House staff, including Mr. Meadows, with White House Counsel lawyers, and with Mr. Tony Ornato, who served as the White House Deputy Chief of Staff. She also worked on a daily basis with members of the Secret Service who were posted in the White House. In short, Miss Hutchinson was in a position to know a great deal about the happenings in the Trump White House. 24:20 Rep. Liz Cheney (R-WY): On January 3, the Capitol Police issued a special event assessment. In that document, the Capitol Police noted that the Proud Boys and other groups planned to be in Washington DC on January 6, and indicated that quote, "unlike previous post election protests, the targets of the pro-Trump supporters are not necessarily the counter protesters, as they were previously, but rather, Congress itself is the target on the Sixth. 27:45 Rep. Liz Cheney (R-WY): Of course the world now knows that the people who attacked the Capitol on January 6 had many different types of weapons. When a President speaks, the Secret Service typically requires those attending to pass through metal detectors known as magnetometers, or mags for short. Rep. Liz Cheney (R-WY): The Select Committee has learned about reports from outside the magnetometers and has obtained police radio transmissions identifying individuals with firearms, including AR-15s near the Ellipse on the morning of January 6. Let's listen. Police Officer #1: Blue jeans and a blue jean jacket and underneath the blue jacket complaintants both saw the top of an AR 15. Police Officer #2: Any white males brown cowboy boots, they had Glock-style pistols in their waistbands. Police Officer #3: 8736 with the message that subject weapon on his right hip. Police Officer #4: Motor one, make sure PPD knows they have an elevated threat in the tree South side of Constitution Avenue. Look for the "Don't tread on me" flag, American flag facemask cowboy boots, weapon on the right side hip. Police Officer #5: I got three men walking down the street in fatigues and carrying AR-15s. Copy at Fourteenth and Independence. Rep. Liz Cheney (R-WY): We're going to show now an exchange of texts between you and Deputy Chief of Staff Ornato, and these text messages were exchanged while you were at the Ellipse. In one text, you write, "but the crowd looks good from this vantage point, as long as we get the shot. He was f---ing furious." But could you tell us, first of all, who it is in the text who was furious? Cassidy Hutchinson: The he in that text that I was referring to was the President. Rep. Liz Cheney (R-WY): And why was he furious, Miss Hutchinson? Cassidy Hutchinson: He was furious because he wanted the arena that we had on the Ellipse to be maxed out at capacity for all attendees. The advanced team had relayed to him that the mags were free flowing. Everybody who wanted to come in had already come in, but he still was angry about the extra space and wanted more people to come in. Cassidy Hutchinson: And that's what Tony [Ornato] had been trying to relate to him [President Trump] that morning. You know, it's not the issue that we encountered on the campaign. We have enough space. They don't want to come in right now, they have weapons they don't want confiscated by the Secret Service. They're fine on the Mall, they can see you on the Mall and they want to march straight to the Capitol from the Mall. But when we were in the off stage announced tent, I was part of a conversation -- I was in the, I was in the vicinity of a conversation -- where I overheard the President say something to the effect of you know, "I don't think that they have weapons. They're not here to hurt me take the effing mags away. Let my people in, they can march to the Capitol from here. Let the people in, take the effing mags away." Rep. Liz Cheney (R-WY): On December 1, 2020, Attorney General Barr said in an interview that the Department of Justice had now not found evidence of widespread election fraud, sufficient to change the outcome of the election. Ms. Hutchinson, how did the President react to hearing that news? Cassidy Hutchinson: I left the office and went down to the dining room, and I noticed that the door was propped open in the valet was inside the dining room changing the tablecloth off of the dining room table. The valet had articulated that the President was extremely angry at the Attorney General's AP interview and had thrown his lunch against the wall. Rep. Liz Cheney (R-WY): Miss Hutchinson, Attorney General Barr described to the Committee the President's angry reaction when he finally met with President Trump. Let's listen. Former Attorney General Bill Barr: And I said, "Look, I I know that you're dissatisfied with me and I'm glad to offer my resignation" and then he pounded the table very hard. Everyone sort of jumped and he said "Accepted." Reporter: Leader McCarthy, Do you condemn this violence? Rep. Kevin McCarthy (R-CA): I completely condemn the violence in the Capitol. What we're currently watching unfold is un-American. I'm disappointed, I'm sad. This is not what our country should look like. This is not who we are. This is not the First Amendment. This has to stop and this has to stop now. Rep. Liz Cheney (R-WY): Did White House Chief of Staff Mark Meadows ever indicate that he was interested in receiving a Presidential Pardon related to January 6? Cassidy Hutchinson: Mr. Meadows did seek that pardon. Yes, ma'am. Rep. Liz Cheney (R-WY): While our committee has seen many witnesses, including many Republicans, testify fully and forthrightly, this has not been true of every witness. And we have received evidence of one particular practice that raises significant concern. Our committee commonly asks witnesses connected to Mr. Trump's administration or campaign whether they'd been contacted by any of their former colleagues, or anyone else who attempted to influence or impact their testimony, without identifying any of the individuals involved. Let me show you a couple of samples of answers we received to this question. First, here's how one witness described phone calls from people interested in that witness's testimony. "What they said to me is, as long as I continue to be a team player, they know I'm on the right team, I'm doing the right thing, I'm protecting who I need to protect, you know, I'll continue to stay in good graces in Trump World. And they have reminded me a couple of times that Trump does read transcripts and just keep that in mind as I proceed through my interviews with the committee." Here's another sample in a different context. This is a call received by one of our witnesses. "A person let me know you have your deposition tomorrow. He wants me to let you know that he's thinking about you. He knows you're loyal, and you're going to do the right thing when you go in for your deposition." I think most Americans know that attempting to influence witnesses to testify untruthfully presents very serious concerns. June 23, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Jeffrey A. Rosen, Former Acting Attorney General Richard Donoghue, Former Acting Deputy Attorney General Steven Engel, Former Assistant Attorney General for the Office of Legal Counsel Eric Herschmann, Former White House Senior Advisor Clips Rep. Bennie Thompson (D-MS): From the time you took over from Attorney General Barr until January 3, how often did President Trump contact you or the Department to push allegations of election fraud? Former Acting Attorney General Jeffrey Rosen: So between December 23 and January 3, the president either called me or met with me virtually every day, with one or two exceptions like Christmas Day Rep. Andy Biggs (R-AZ): Again, I join my colleagues in calling on Attorney General Barr to immediately let us know what he's doing. Rep. Paul Gosar (R-AZ): We're already working on challenging the certified electors. And what about the court? How pathetic are the courts? Rep. Matt Gaetz (R-FL): January 6, I'm joining with the fighters in the Congress, and we are going to object to electors from states that didn't run clean elections. Democracy is left undefended if we accept the result of a stolen election without fighting with every bit of vigor we can muster. Rep. Jim Jordan (R-OH): The ultimate date of significance is January 6. This is how the process works. The ultimate arbiter here, the ultimate check and balance, is the United States Congress. And when something is done in an unconstitutional fashion, which happened in several of these states, we have a duty to step forward and have this debate and have this vote on the 6th of January. Former Acting Deputy Attorney General Richard Donoghue: So both the Acting Attorney General [Rosen] and I tried to explain to the President on this occasion, and on several other occasions that the Justice Department has a very important, very specific, but very limited role in these elections. States run their elections. We are not quality control for the states. We are obviously interested in and have a mission that relates to criminal conduct in relation to federal elections. We also have related civil rights responsibilities. So we do have an important role, but the bottom line was if a state ran their election in such a way that it was defective, that is to the state or Congress to correct. It is not for the Justice Department to step in. And I certainly understood the President, as a layman, not understanding why the Justice Department didn't have at least a civil role to step in and bring suit on behalf of the American people. We tried to explain that to him. The American people do not constitute the client for the United States Justice Department. The one and only client of the United States Justice Department is the United States government. And the United States government does not have standing, as we were repeatedly told by our internal teams. Office of Legal Counsel, led by Steve Engel, as well as the Office of the Solicitor General researched it and gave us thorough clear opinions that we simply did not have standing and we tried to explain that to the President on numerous occasions. Rep. Adam Kinzinger (R-IL): Let's take a look at another one of your notes. You also noted that Mr. Rosen said to Mr. Trump, quote, "DOJ can't and won't snap its fingers and change the outcome of the election." How did the President respond to that, sir? Former Acting Deputy Attorney General Richard Donoghue: He responded very quickly and said, essentially, that's not what I'm asking you to do. What I'm just asking you to do is just say it was corrupt and leave the rest to me and the Republican Congressmen. Former Acting Deputy Attorney General Richard Donoghue: There were isolated instances of fraud. None of them came close to calling into question the outcome of the election in any individual State. January 6 Committee Lawyer: And was representative Gaetz requesting a pardon? Eric Herschmann: Believe so. The general tone was, we may get prosecuted because we were defensive of, you know, the President's positions on these things. A pardon that he was discussing, requesting, was as broad as you could describe, from the beginning of time up until today, for any and all things. He had mentioned Nixon and I said Nixon's pardon was never nearly that broad. January 6 Committee Lawyer: And are you aware of any members of Congress seeking pardons? Cassidy Hutchinson: I guess Mr. Gaetz and Mr. Brooks, I know, both advocated for, there to be a blanket pardon for members involved in that meeting and a handful of other members that weren't at the December 21 meeting as the preemptive pardons. Mr. Gaetz was personally pushing for a pardon and he was doing so since early December. I'm not sure why. Mr. Gaetz had reached out to me to ask if he could have a meeting with Mr. Meadows about receiving a Presidential pardon. January 6 Committee Lawyer: Did they all contact you? Cassidy Hutchinson: Not all of them, but several of them did. January 6 Committee Lawyer: So you'd be mentioned Mr. Gaetz and Mr. Brooks. Cassidy Hutchinson: Mr. Biggs did. Mr. Jordan talks about congressional pardons but he never asked me for one. It was more for an update on whether the White House is going to pardon members of Congress. Mr. Gohmert asked for one as well. Mr. Perry asked for a pardon too, I'm sorry. January 6 Committee Lawyer: Mr. Perry, did he talk to you directly? Cassidy Hutchinson: Yes, he did. Rep. Adam Kinzinger (R-IL): Mr. Clark was the acting head of the Civil Division and head of Environmental and Natural Resources Division at the Department of Justice. Do either of those divisions have any role whatsoever in investigating election fraud, sir? Former Acting Attorney General Jeffrey Rosen: No. And and to my awareness, Jeff Clark had had no prior involvement of any kind with regard to the work that the department was doing. Rep. Adam Kinzinger (R-IL): Is there a policy that governs who can have contact directly with the White House? Former Acting Attorney General Jeffrey Rosen: Yes. So across many administrations for a long period of time, there's a policy that particularly with regard to criminal investigations restricts at both the White House and the Justice Department and those more sensitive issues to the highest ranks. So for criminal matters, the policy for a long time has been that only the Attorney General and the Deputy Attorney General from the DOJ side can have conversations about criminal matters with the White House, or the Attorney General and the Deputy Attorney General can authorize someone for a specific item with their permission. But the idea is to make sure that the top rung of the Justice Department knows about it, and is in the thing to control it and make sure only appropriate things are done. Steven Engel: The purpose of these these policies is to keep these communications as infrequent, and at the highest levels as possible, just to make sure that people who are less careful about it who don't really understand these implications, such as Mr. Clark, don't run afoul of those contact policies. Former Acting Attorney General Jeffrey Rosen: He acknowledged that shortly before Christmas, he had gone to a meeting in the Oval Office with the President. That, of course, surprised me. And I asked him, How did that happen? And he was defensive, he said it had been unplanned, that he had been talking to someone he referred to as "General Perry," but I believe is Congressman Perry, and that, unbeknownst to him, he was asked to go to a meeting and he didn't know it, but it turned out it was at the Oval -- he found himself at the Oval Office. And he was apologetic for that. And I said, Well, you didn't tell me about it. It wasn't authorized. And you didn't even tell me after the fact. You know, this is not not appropriate. But he was contrite and said it had been inadvertent and it would not happen again and that if anyone asked him to go to such a meeting, he would notify [Former Acting Deputy Attorney General] Rich Donohue and me. Rep. Adam Kinzinger (R-IL): On the same day Acting Attorney General Rosen told Mr. Clark to stop talking to the White House, Representative Perry was urging Chief of Staff Mark Meadows to elevate Clark within the Department of Justice. You can now see on the screen behind me a series of tasks between representative Perry and Mr. Meadows. They show that Representative Perry requested that Mr. Clark be elevated within the department. Representative Perry tells Mr. Meadows on December 26, that quote, "Mark, just checking in as time continues to count down, 11 days to January 6 and 25 days to inauguration. We've got to get going!" Representative Perry followed up and says quote, "Mark, you should call Jeff. I just got off the phone with him and he explained to me why the principal deputy won't work especially with the FBI. They will view it as not having the authority to enforce what needs to be done." Mr. Meadows responds with "I got it. I think I understand. Let me work on the deputy position." Rep. Liz Cheney (R-WY): Mr. Donohue on December 28, Mr. Clark emailed you and Mr. Rosen a draft letter that he wanted you to sign and send to Georgia State officials. This letter claims that the US Department of Justice's investigations have quote, "identified significant concerns that may have impacted the outcome of the election in multiple States, including the state of Georgia." The letter also said this: quote, "in light of these developments, the Department recommends that the Georgia General Assembly should convene in special session," end quote, and consider approving a new slate of electors. Steven Engel: The States had chosen their electors, the electors had been certified, they'd cast their votes, they had been sent to Washington DC. Neither Georgia nor any of the other States on December 28, or whenever this was, was in a position to change those votes. Essentially, the election had happened. The only thing that hadn't happened was the formal counting of the votes. Former Acting Deputy Attorney General Richard Donoghue: I had to read both the email and the attached letter twice to make sure I really understood what he was proposing because it was so extreme to me, I had a hard time getting my head around it initially. But I read it and I did understand it for what he intended and I had to sit down and sort of compose what I thought was an appropriate response. In my response, I explained a number of reasons this is not the Department's role to suggest or dictate to State legislatures how they should select their electors. But more importantly, this was not based on fact, that this was actually contrary to the facts, as developed by Department investigations over the last several weeks and months. So I responded to that. And for the Department to insert itself into the political process's way, I think would have had grave consequences for the country. It may very well have spiraled us into a Constitutional crisis. And I wanted to make sure that he understood the gravity of the situation because he didn't seem to really appreciate it. Rep. Adam Kinzinger (R-IL): President Trump rushed back early from Mar-a-Lago on December 31, and called an emergency meeting with the Department's leadership. Mr. Donohue, during this meeting, did the President tell you that he would remove you and Mr. Rosen because you weren't declaring there was election fraud? Former Acting Deputy Attorney General Richard Donoghue: Toward the end of the meeting, the President, again was getting very agitated. And he said, "People tell me I should just get rid of both of you. I should just remove you and make a change in the leadership, put Jeff Clark and maybe something will finally get done." Rep. Adam Kinzinger (R-IL): Mr. Rosen during a January 2 meeting with Mr. Clark, did you confront him again about his contact with the President? And if so, can you describe that? Former Acting Attorney General Jeffrey Rosen: We had -- it was a contentious meeting where we were chastising him that he was insubordinate, he was out of line, he had not honored his own representations of what he would do. And he raised again, that he thought that letter should go out. And we were not receptive to that. Rep. Adam Kinzinger (R-IL): So in that meeting, did Mr. Clark say he would turn down the President's offer if you reversed your position and sign the letter? Former Acting Attorney General Jeffrey Rosen: Yes. Subsequently, he told me that on the on Sunday the 3rd. He told me that the timeline had moved up, and that the President had offered him the job and that he was accepting it. Rep. Adam Kinzinger (R-IL): White House Call Logs obtained by the Committee show that by 4:19pm, on January 3, the White House had already begun referring to Mr. Clark as the Acting Attorney General. Let's ask about that, what was your reaction to that? Former Acting Attorney General Jeffrey Rosen: Well, you know, on the one hand, I wasn't going to accept being fired by my subordinate. So I wanted to talk to the President directly. Former Acting Deputy Attorney General Richard Donoghue: So the four of us knew, but no one else, aside from Jeff Clark of course, knew what was going on until late that Sunday afternoon. We chose to keep a close hold, because we didn't want to create concern or panic in the Justice Department leadership. But at this point, I asked the Acting AG [Rosen], what else can I do to help prepare for this meeting in the Oval Office, and he said, You and Pat [Cipollone] should get the Assistant Attorney Generals on the phone, and it's time to let them know what's going on. Let's find out what they may do if there's a change in leadership, because that will help inform the conversation at the Oval Office. We got most, not all, but most of the AAGs on the phone. We very quickly explained to them what the situation was. [They] essentially said they would leave, they would resign en mass if the President made that change in the department leadership. Rep. Adam Kinzinger (R-IL): DOJ leadership arrived at the White House. Former Acting Deputy Attorney General Richard Donoghue: The conversation this point was really about whether the President should remove Jeff Rosen and replace him with Jeff Clark. And everyone in the room, I think, understood that that meant that letter would go out. And at some point, the conversation turned to whether Jeff Clark was even qualified, competent to run the Justice Department, which in my mind, he clearly was not. And it was a heated conversation. I thought it was useful to point out to the President that Jeff Clark simply didn't have the skills, the ability and the experience to run the Department. And so I said, "Mr. President, you're talking about putting a man in that seat who has never tried a criminal case, who's never conducted a criminal investigation, he's telling you that he's going to take charge of the department, 115,000 employees, including the entire FBI, and turn the place on a dime and conduct nationwide criminal investigations that will produce results in a matter of days. It's impossible. It's absurd. It's not going to happen, and it's going to fail. He has never been in front of a trial jury, a grand jury. He's never even been to Chris Wray's office." I said at one point, "if you walked into Chris Wray's office, one, would you know how to get there and, two, if you got there, would he even know who you are? And you really think that the FBI is going to suddenly start following you orders? It's not going to happen. He's not competent." And that's the point at which Mr. Clark tried to defend himself by saying, "Well, I've been involved in very significant civil and environmental litigation. I've argued many appeals and appellate courts and things of that nature." And then I pointed out that, yes, he was an environmental lawyer, and I didn't think that was appropriate background to be running in the United States Justice Department. Rep. Adam Kinzinger (R-IL): Did anybody in there support Mr. Clark? Former Acting Deputy Attorney General Richard Donoghue: No one. Along those lines, he [former President Trump] said, "so suppose I do this, suppose I replace him, Jeff Rosen, with him, Jeff Clark, what would you do?" And I said, "Mr. President, I would resign immediately. I'm not working one minute for this guy [Clark], who I just declared was completely incompetent." And so the President immediately turned to to Mr. Engel. Steven Engel: My recollection is that when the President turned to me and said, "Steve, you wouldn't leave, would you?" I said, "Mr. President, I've been with you through four Attorneys General, including two Acting Attorneys General, but I couldn't be part of this." Former Acting Deputy Attorney General Richard Donoghue: And I said, and we're not the only ones. No one cares if we resign. If Steve and I go, that's fine, it doesn't matter. But I'm telling you what's going to happen. You're gonna lose your entire Department leadership, every single AAG will walk out on you. Your entire Department of leadership will walk out within hours." And I said, "Mr. President, within 24...48...72 hours, you could have hundreds and hundreds of resignations of the leadership of your entire Justice Department because of your actions. What's that going to say about you?" Former Acting Deputy Attorney General Richard Donoghue: And then the other thing that I said was that, you know, look, all anyone is going to sort of think about when they see this...no one is going to read this letter....all anyone is going to think is that you went through two Attorneys General in two weeks until you found the environmental guy to sign this thing. And so the story is not going to be that the Department of Justice has found massive corruption that would have changed results of the election. It's going to be the disaster of Jeff Clark. I think at that point Pat Cipollone said, "Yeah, this is a murder suicide pact, this letter." Rep. Adam Kinzinger (R-IL): Mr. Cipollone, the White House Counsel, told the Committee that Mr. Engels response had a noticeable impact on the President, that this was a turning point in the conversation. Mr. Donohue, towards the end of this meeting, did the President asked you what was going to happen to Mr. Clark? Former Acting Deputy Attorney General Richard Donoghue: He did. When we finally got to, I'd say, the last 15 minutes of the meeting, the President's decision was apparent, he announced it. Jeff Clark tried to scrape his way back and asked the President to reconsider. The President double down said "No, I've made my decision. That's it. We're not going to do it." And then he turned to me and said, "so what happens to him now?" Meaning Mr. Clark. He understood that Mr. Clark reported to me. And I didn't initially understand the question. I said, "Mr. President?" and he said, "Are you going to fire him?" And I said, "I don't have the authority to fire him. He's the Senate confirmed Assistant Attorney General." And he said, "Well, who has the authority to fire him?" And I said, "Only you do, sir." And he said, "Well, I'm not going to fire him." I said, "Alright, well, then we should all go back to work." June 21, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Rusty Bowers, Arizona House Speaker Brad Raffensperger, Georgia Secretary of State Gabriel Sterling, Georgia Secretary of State Chief Operating Officer Wandrea ArShaye, “Shaye” Moss, former Georgia election worker Ronna Romney McDaniel, RNC Chair Justin Clark, former Trump Campaign lawyer Robert Sinners, former Trump campaign staffer Andrew Hitt, Former Wisconsin Republican Party Chair Laura Cox, Former Michigan Republican Party Chair Josh Roselman, Investigative Counsel for the J6 Committee John Eastman, Former Trump Lawyer Mike Shirkey, Majority Leader of the Michigan Senate Angela McCallum, Trump Campaign caller Rudy Giuliani Clips Josh Roselman: My name is Josh Roselman, I'm an Investigative Counsel for the House Select Committee to investigate the January 6 attack on the United States Capitol. Beginning in late November 2020. The President and his lawyers started appearing before state legislators, urging them to give their electoral votes to Trump, even though he lost the popular vote. This was a strategy with both practical and legal elements. The Select Committee has obtained an email from just two days after the election, in which a Trump campaign lawyer named Cleata Mitchell asked another Trump lawyer, John Eastman, to write a memo justifying the idea. Eastman prepared a memo attempting to justify this strategy, which was circulated to the Trump White House, Rudy Giuliani's legal team, and state legislators around the country and he appeared before the Georgia State Legislature to advocate for it publicly. John Eastman: You could also do what the Florida Legislature was prepared to do, which is to adopt a slate of electors yourself. And when you add in the mix of the significant statistical anomalies in sworn affidavits and video evidence of outright election fraud, I don't think it's just your authority to do that, but quite frankly, I think you have a duty to do that to protect the integrity of the election here in Georgia. Josh Roselman: But Republican officials in several states released public statements recognizing that President Trump's proposal was unlawful. For instance, Georgia Governor Brian Kemp called the proposal unconstitutional, while Arizona House Speaker Rusty Bowers wrote that the idea would undermine the rule of law. The pressure campaign to get state legislators to go along with this scheme intensified when President Trump invited delegations from Michigan and Pennsylvania to the White House. January 6 Committee Lawyer: Either you or speaker Chatfield, did you make the point to the President, that you were not going to do anything that violated Michigan law? Mike Shirkey: I believe we did. Whether or not it was those exact words or not, I think the words that I would have more likely used is, "we are going to follow the law." Josh Roselman: Nevertheless, the pressure continued. The next day President Trump tweeted quote, "hopefully the Courts and/or Legislatures will have the COURAGE to do what has to be done to maintain the integrity of our Elections, and the United States of America itself. THE WORLD IS WATCHING!!!!" He posted multiple messages on Facebook, listing the contact information for state officials and urging his supporters to contact them to quote "demand a vote on decertification." These efforts also involves targeted outreach to state legislators from President Trump's lawyers and from Trump himself. Angela McCallum: Hi, my name is Angela McCallum, I'm calling from Trump campaign headquarters in Washington DC. You do have the power to reclaim your authority and send us a slate of Electors that will support President Trump and Vice President Pence. Josh Roselman: Another legislator, Pennsylvania House Speaker Brian Cutler, received daily voicemails from Trump's lawyers in the last week of November. Cutler felt that the outreach was inappropriate and asked his lawyers to tell Rudy Giuliani to stop calling, but Giuliani continued to reach out. Rudy Giuliani: I understand that you don't want to talk to me now. I just want to bring some facts to your attention and talk to you as a fellow Republican. Josh Roselman: These ads were another element in the effort. The Trump campaign spent millions of dollars running ads online and on television. Commercial Announcer: The evidence is overwhelming. Call your governor and legislators demand they inspect the machines and hear the evidence. Fake electors scheme Casey Lucier: My name is Casey Lucier. I'm an Investigative Counsel for the House Select Committee to Investigate the January 6 Attack on the United States Capitol. On November 18, a lawyer working with the Trump campaign named Kenneth Chesebro wrote a memo arguing that the Trump campaign should organize its own electors in the swing states that President Trump had lost. The Select Committee received testimony that those close to President Trump began planning to organize fake electors for Trump in states that Biden won in the weeks after the election. At the President's direct request, the RNC assisted the campaign in coordinating this effort. January 6 Committee Lawyer: What did the President say when he called you? Ronna Romney McDaniel: Essentially, he turned the call over to Mr. Eastman, who then proceeded to talk about the importance of the RNC helping the campaign gather these contingent electors in case any of the legal challenges that were ongoing change the result of any dates, I think more just helping them reach out and assemble them. But the My understanding is the campaign did take the lead, and we just were helping them in that in that role. Casey Lucier: As President Trump and his supporters continued to lose lawsuits, some campaign lawyers became convinced that convening electors in states that Trump lost was no longer appropriate. Justin Clark: I just remember I either replied or called somebody saying, unless we have litigation pending this, like in the states, like, I don't think this is appropriate, or no, this isn't the right thing to do. I'm out. Matt Morgan: At that point, I had Josh Findlay email Mr. Chesebro, politely, to say, "This is your task. You are responsible for the Electoral College issues moving forward". And this was my way of taking that responsibility to zero. Casey Lucier: The Committee learned the White House Counsel's Office also felt the plan was potentially illegal. January 6 Committee Lawyer: And so to be clear, did you hear the White House Counsel's office saying that this plan to have alternate electors meet and cast votes for Donald Trump in states that he had lost was not legally sound? Cassidy Hutchinson: Yes, sir. Casey Lucier: The Select Committee interviewed several of the individual fake electors, as well as Trump campaign staff who helped organize the effort. Robert Sinners: We were just, you know, kind of useful idiots or rubes at that point. You know, a strong part of me really feels that it's just kind of as the road continued, and as that was failure, failure, failure that that got formulated as what do we have on the table? Let's just do it. January 6 Committee Lawyer: And now after what we've told you today about the Select Committee's investigation about the conclusion of the professional lawyers on the campaign staff, Justin Clark, Matt Morgan and Josh Findlay, about their unwillingness to participate in the convening of these electors, how does that contribute to your understanding of these issues? Robert Sinners: I'm angry, I'm angry. Because I think in a sense, you know, no one really cared if people were potentially putting themselves in jeopardy. January 6 Committee Lawyer: Would you have not wanted to participate in this any further, as well? Robert Sinners: I absolutely would not have had I know that the three main lawyers for the campaign that I've spoken to in the past, and were leading up, we're not on board. Yeah. Andrew Hitt: I was told that these would only count if a court ruled in our favor. So that would have been using our electors. Well, it would have been using our electors in ways that we weren't told about and we wouldn't have supported. Casey Lucier: Documents obtained by the Select Committee indicate that instructions were given to the electors in several states that they needed to cast their ballots in complete secrecy. Because the scheme involved fake electors, those participating in certain states had no way to comply with state election laws, like where the electors were supposed to meet. One group of fake electors even considered hiding overnight to ensure that they could access the State Capitol, as required in Michigan. January 6 Committee Lawyer: Did Mr. Norton say who he was working with at all on this effort to have electors meet? Laura Cox: He said he was working with the President's campaign. He told me that the Michigan Republican electors were planning to meet in the Capitol and hide overnight so that they could fulfill the role of casting their vote per law in the Michigan chambers and I told him in no uncertain terms that that was insane and inappropriate. Casey Lucier: In one state, the fake electors even asked for a promise that the campaign would pay their legal fees if they got sued or charged with a crime. Ultimately, fake electors did meet on December 14, 2020 in Arizona, Georgia, Michigan, Pennsylvania, New Mexico, Nevada and Wisconsin. At the request of the Trump campaign, the electors from these battleground states signed documents falsely asserting that they were the quote, "duly elected" electors from their state and submitted them to the National Archives and to Vice President Pence in his capacity as President of the Senate. In an email produced to the Select Committee, Dr. Eastman told the Trump campaign representative that it did not matter that the electors had not been approved by a state authority. Quote, "the fact that we have multiple slates of electors demonstrates the uncertainty of either. That should be enough." He urged that Pence "act boldly and be challenged." Documents produced to the Select Committee show that the Trump campaign took steps to ensure that the physical copies of the fake electors' electoral votes from two states were delivered to Washington for January 6. Text messages exchanged between Republican Party officials in Wisconsin show that on January 4, the Trump campaign asked for someone to fly their fake electors' documents to Washington. A staffer for Wisconsin Senator Ron Johnson texted a staffer for Vice President Pence just minutes before the beginning of the Joint Session. This staffer stated that Senator Johnson wished to hand deliver to the Vice President the fake electors' votes from Michigan and Wisconsin. The Vice President's aide unambiguously instructed them not to deliver the fake votes to the Vice President. Even though the fake elector slates were transmitted to Congress and the Executive Branch, the Vice President held firm and his position that his role was to count lawfully submitted electoral votes. Rep. Bennie Thompson (D-MS): Brad Raffensperger is the 29th Secretary of State of Georgia, serving in this role since 2019. As an elected official, and a Republican Secretary, Raffensperger is responsible for supervising elections in Georgia and maintaining the state's public records. Rep. Bennie Thompson (D-MS): Speaker Bowers, thank you for being with us today. You're the speaker of the Arizona House and a self-described conservative Republican. You campaigned for President Trump and with him during the 2020 election. Is it fair to say that you wanted Donald Trump to win a second term in office? Please? Rusty Bowers: Yes, sir. Thank you. Rep. Bennie Thompson (D-MS): And is it your understanding that President Biden was the winner of the popular vote in Arizona in 2020? Rusty Bowers: Yes, sir. Rep. Adam Schiff (D-CA): Before we begin with the questions that I had prepared for you, I want to ask you about a statement that former President Trump issued, which I received just prior to the hearing. Former President Trump begins by calling you a RINO, Republican in Name Only. He then references a conversation in November 2020, in which he claims that you told him that the election was rigged, and that he had won Arizona. To quote the former President, "during the conversation, he told me the election was rigged and that I won Arizona," unquote. Is that false? Rusty Bowers: Anywhere, anyone, anytime that has said that I said the election was rigged, that would not be true. Rep. Adam Schiff (D-CA): And when the former President, in his statement today, claimed that you told him that he won Arizona, is that also false? Rusty Bowers: That is also false. Rep. Adam Schiff (D-CA): Mr. Bowers, I understand that after the election, you received a phone call from President Trump and Rudy Giuliani, in which they discussed the result of the presidential election in Arizona. If you would, tell us about that call. Rusty Bowers: Mr. Giuliani came on first. And niceties...then Mr. Trump, President Trump, then-President Trump came on. Rep. Adam Schiff (D-CA): During the conversation did you ask Mr. Giuliani for proof of these allegations of fraud that he was making? Rusty Bowers: On multiple occasions, yes. Rep. Adam Schiff (D-CA): And when you asked him for evidence of this fraud, what did he say? Rusty Bowers: He said that they did have proof. And I asked him, "Do you have names?" [He said] for example, we have 200,000 illegal immigrants, some large number, five or six thousand, dead people, etc. And I said, "Do you have their names?" Yes. "Will you give them to me?" Yes. The President interrupted and said, "Give the man what he needs Rudy." He said, "I will." And that happened on at least two occasions, that interchange in the conversation. Rep. Adam Schiff (D-CA): Did you ever receive from him that evidence either during the call, after the call, or to this day? Rusty Bowers: Never. Rep. Adam Schiff (D-CA): What was the ask during this call? Rusty Bowers: The ones I remember, were first, that we would hold -- that I would allow an official committee at at the Capitol so that they could hear this evidence, and that we could take action thereafter. I said, "to what end? To what end the hearing." He said, well, we have heard by an official high up in the Republican legislature that there is a legal theory or a legal ability in Arizona, that you can remove the the electors of President Biden and replace them. And we would like to have the legitimate opportunity, through the committee, to come to that end and and remove that. And I said that's, that's something that's totally new to me. I've never heard of any such thing. And I would never do anything of such magnitude without deep consultation with qualified attorneys. And I said, I've got some good attorneys, and I'm going to give you their names. But you're asking me to do something against my oath and I will not break my oath. Rep. Adam Schiff (D-CA): Did you also receive a call from US Representative Andy Biggs of Arizona on the morning of January 6? Rusty Bowers: I did. Rep. Adam Schiff (D-CA): And what did Mr. Biggs asked you to do? Rusty Bowers: I believe that was the day that the vote was occurring in each state to have certification or to declare the certification of the electors. And he asked if I would sign on both to a letter that had been sent from my State, and/or that I would support the decertification of the electors. And I said I would not. Rep. Adam Schiff (D-CA): Speaking Bowers, did the President call you again later in December? Rusty Bowers: He did, sir. Rep. Adam Schiff (D-CA): Did you tell the president in that second call that you supported him, that you voted for him, but that you are not going to do anything illegal for him? Rusty Bowers: I did, sir. Rep. Adam Schiff (D-CA): Nevertheless, his lawyer John Eastman called you some days later, and what did Dr. Eastman want you to do? Rusty Bowers: That we would, in fact, take a vote to overthrow -- or I shouldn't say overthrow -- that we would decertify the electors, and that we had plenary authority to do so. But I said, "What would you have me do?" And he said, "Just do it and let the court sorted out." And I said, "You're asking me to do something that's never been done in history, the history of the United States. And I'm going to put my state through that without sufficient proof? And that's going to be good enough with me? That I would, I would put us through that, my state that I swore to uphold, both in Constitution and in law? No, sir." Rep. Adam Schiff (D-CA): I want to look even more deeply at the fake electoral scheme. Every four years, citizens from all over the United States go to the polls to elect the President. Under our Constitution, when we cast our votes for president, we are actually voting to send electors pledged to our preferred candidate to the Electoral College. In December, the electors in each state meet, cast their votes, and send those votes to Washington. There was only one legitimate slate of electors from each state. On the Sixth day of January, Congress meets in a joint session to count those votes, and the winner of the Electoral College vote becomes the president. Rep. Bennie Thompson (D-MS): Secretary Raffensburger, thank you for being here today. You've been a public servant in Georgia since 2015, serving first as a member of the Georgia House of Representatives, and then since January 2019, as Georgia Secretary of State as a self described conservative Republican. Is it fair to say that you wanted President Trump to win the 2020 election? Brad Raffensperger: Yes, it is. Rep. Adam Schiff (D-CA): Secretary Raffensperger, did Joe Biden win the 2020 presidential election in Georgia and by what margin? Brad Raffensperger: President Biden carried the state of Georgia by approximately 12,000 votes. Rep. Adam Schiff (D-CA): Bear in mind as we discuss this call today that by this point in time, early January, the election in Georgia had already been certified. But perhaps more important, the President of the United States had already been told repeatedly by his own top Justice Department officials that the claims he was about to make to you about massive fraud in Georgia were completely false. June 16, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Greg Jacob, Former Counsel to Vice President Mike Pence J. Michael Luttig, Retired judge for the U.S. Court of Appeals for the Fourth Circuit and informal advisor to Mike Pence Julie Radford, Former Chief of Staff for Ivanka Trump Eric Herschmann, Former White House Senior Advisor Nicholas Luna, Former Assistant to President Trump Gen. Keith Kellogg, Former National Security Advisor to VP Pence Clips 16:45 Rep. Bennie Thompson (D-MS): Greg Jacob was Counsel to Vice President Pence. He conducted a thorough analysis of the role of the Vice President in the Joint Session of Congress under the Constitution, the Electoral Count Act, and 230 years of historical practice. But he also has firsthand information about the attack on the Capitol because he lived through it. He was with the Vice President and his own life was in danger. 31:05 Rep. Liz Cheney (R-WY): Eastman was, at the time, a law professor at Chapman University Law School. He prepared a memo outlining the nonsensical theory that the Vice President could decide the outcome of the election at the Joint Session of Congress on January 6. 32:50 Rep. Liz Cheney (R-WY): Dr. Eastman himself admitted in an email that the fake electors had no legal weight. Referring to the fake electors as, quote "dead on arrival in Congress" end quote, because they did not have a certification from their States. 46:40 Greg Jacob: We had a constitutional crisis in 1876 because in that year, multiple slates of electors were certified by multiple slates [sic]. And when it came time to count those votes, the antecedent question of "which ones?" had to be answered. That required the appointment of an independent commission. That commission had to resolve that question. And the purpose of the Electoral Count Act of 1887 had been to resolve those latent ambiguities. Now I'm in complete agreement with Judge Luttig. It is unambiguous that the Vice President does not have the authority to reject electors. There is no suggestion of any kind that it does. There is no mention of rejecting or objecting to electors anywhere in the 12th amendment. And so the notion that the Vice President could do that certainly is not in the text. But the problem that we had and that John Eastman raised in our discussions was, we had all seen that in Congress in 2000, in 2004, in 2016, there had been objections raised to various states. And those had even been debated in 2004. And so, here you have an Amendment that says nothing about objecting or rejecting. And yet we did have some recent practice of that happening within the terms of the Electoral Count Act. So we started with that. 1:20:45 Greg Jacob: He again tried to say, but I don't think the courts will get involved in this. They'll invoke the political question doctrine and so if the courts stay out of it, that will mean that we'll have the 10 days for the States to weigh in and resolve it. And then, you know, they'll send back the Trump slates of electors, and the people will be able to accept that. I expressed my vociferous disagreement with that point, I did not think that this was a political question. Among other things, if the courts did not step in to resolve this, there was nobody else to resolve it. You would be in a situation where you have a standoff between the President of the United States and, counterfactually, the Vice President of the United States saying that we've exercised authorities that, Constitutionally, we think we have by which we have deemed ourselves the winners of the election. You would have an opposed House and Senate disagreeing with that. You would have State legislatures that, to that point, I mean, Republican leaders across those legislatures had put together, had put out statements, and we collected these for the Vice President as well, that the people had spoken in their States and that they had no intention of reversing the outcome of the election. We did receive some signed letters that Mr. Eastman forwarded us by minorities of leaders in those States, but no State had any legislative house that indicated that added any interest in it. So you would have had just a an unprecedented Constitutional jump ball situation with that standoff. And as I expressed to him, that issue might well then have to be decided in the streets. Because if we can't work it out politically, we've already seen how charged up people are about this election. And so it would be a disastrous situation to be in. So I said, I think the courts will intervene. I do not see a commitment in the Constitution of the question, whether the Vice President has that authority to some other actor to resolve there. There's arguments about whether Congress and the Vice President jointly have a Constitutional commitment to generally decide electoral vote issues. I don't think that they have any authority to object or reject them. I don't see it in the 12th Amendment, but nonetheless. And I concluded by saying, "John, in light of everything that we've discussed, can't we just both agree that this is a terrible idea?" And he couldn't quite bring himself to say yes to that. But he very clearly said, "Well, yeah, I see we're not going to be able to persuade you to do this." And that was how the meeting concluded. Rep. Pete Aguilar (D-CA): We understand that the Vice President started his day on January 4 with a rally in Georgia for the Republican candidates in the US Senate runoff. When the Vice President returned to Washington, he was summoned to meet with the President regarding the upcoming Joint Session of Congress. Mr. Jacob, during that meeting between the President and the Vice President, what theories did Dr. Eastman present regarding the role of the Vice President in counting the electoral votes? Greg Jacob: During the meeting on January 4, Mr. Eastman was opining there were two legally viable arguments as to authorities that the Vice President could exercise two days later on January 6. One of them was that he could reject electoral votes outright. The other was that he could use his capacity as Presiding Officer to suspend the proceedings and declare essentially a 10-day recess during which States that he deemed to be disputed, there was a list of five to seven states, the exact number changed from conversation to conversation, but that the Vice President could sort of issue and demand to the State Legislatures in those States to re-examine the election and declare who had won each of those States. So he said that both of those were legally viable options. He said that he did not recommend, upon questioning, he did not recommend what he called the "more aggressive option," which was reject outright, because he thought that that would be less politically palatable. The imprimatur of State Legislature authority would be necessary to ultimately have public acceptance of an outcome in favor of President Trump. And so he advocated that the preferred course of action would be the procedural route of suspending the Joint Session and sending the election back to the States. And again, the Vice President's first instinct here is so decisive on this question, there's just no way that the framers of the Constitution who divided power and authority, who separated it out, who had broken away from George III, and declared him to be a tyrant, there was no way that they would have put in the hands of one person, the authority to determine who was going to be President of the United States. And then we went to history. We examined every single electoral vote count that had happened in Congress since the beginning of the country. And critically, no Vice President, in 230 years of history, had ever claimed to have that kind of authority, hadn't claimed authority to reject electoral votes, had not claimed authority to return electoral votes back to the States. In the entire history of the United States, not once had a Joint Session, ever returned electoral votes back to the States to be counted. So the history was absolutely decisive. And again, part of my discussion with Mr. Eastman was, if you were right, don't you think Al Gore might have liked to have known in 2000, that he had authority to just declare himself President of the United States? Did you think that the Democrat lawyers just didn't think of this very obvious quirk that he could use to do that? And of course, he acknowledged Al Gore did not and should not have had that authority at that point in time. So at the conclusion of the meeting on the 4th, the President had asked that our office meet with Mr. Eastman the next day to hear more about the positions he had expressed at that meeting, and the Vice President indicated that....offered me up as his counsel, to fulfill that duty. We had an extended discussion an hour and a half to two hours on January 5. What most surprised me about that meeting was that when Mr. Eastman came in, he said, "I'm here to request that you reject the electors." So on the 4th, that had been the path that he had said, "I'm not recommending that you do that." But on the 5th, he came in and expressly requested that. Rep. Pete Aguilar (D-CA): Mr. Jacob did you, Mr. Short, and the Vice President have a call later that day, again, with the President and Dr. Eastman? Greg Jacob: So, yes, we did. Rep. Pete Aguilar (D-CA): And what did Dr. Eastman requested on that call? Greg Jacob: On that phone call, Mr. Eastman stated that he had heard us loud and clear that morning, we were not going to be rejecting electors. But would we be open to considering the other course that we had discussed on the 4th, which would be to suspend the Joint Session and request that State Legislatures reexamine certification of the electoral votes? Rep. Pete Aguilar (D-CA): Trump issued a statement claiming the Vice President had agreed that he could determine the outcome of the election, despite the fact that the Vice President had consistently rejected that position. Mr. Jacob, how did the Vice President's team reacts to the statement from the President? Greg Jacob: So we were shocked and disappointed, because whoever had written and put that statement out, it was categorically untrue. Rep. Pete Aguilar (D-CA): Mr. Jacob, did you go to the Vice President's residences on the morning of January 6? Greg Jacob: Yes. Rep. Pete Aguilar (D-CA): Did the Vice President have a call with the President that morning? Greg Jacob: He did. Rep. Pete Aguilar (D-CA): The President had several family members with him in the Oval that morning for that call. I'd like to show you what they and others told the Select Committee about that call. Eric Herschmann: When I got in, somebody called me and said that the family and others were in the Oval and do I want to come up? So I went upstairs. Ivanka Trump: It wasn't a specific, formal discussion. It was very sort of loose and casual. When I entered the office the second time he was on the telephone with who I later found out to be was the Vice President. January 6 Committee Lawyer: Could you hear the Vice President or only hear the President's end? Eric Herschmann: I could only hear the President's end. Ivanka Trump: The conversation was pretty heated. Eric Herschmann: I think till it became somewhat in a louder tone, I don't think anyone was paying attention to it initially. January 6 Committee Lawyer: Did you hear any part of the phone call, even if just this the end that the President was speaking from? Nicholas Luna: I did, yes. January 6 Committee Lawyer: All right. And what do you hear? Nicholas Luna: So as I was dropping off the note, my memory, I remember hearing the word "wimp." He called him a wimp. I don't remember if he said "You are a wimp," "You'll be a wimp." Wimp is the word I remember. January 6 Committee Lawyer: It's also been reported that the President said to the Vice President something to the effect that "you don't have the courage to make a hard decision." Gen. Keith Kellogg: Worse. I don't remember exactly, but it was something like that, yeah. Like "you're not tough enough to make the call." Ivanka Trump: It was a different tone than I'd heard him take with the Vice President before. Nicholas Luna: Something to the effect, this is, the wording's wrong...."I made the wrong decision four or five years ago." January 6 Committee Lawyer: And the word that she relayed to, that the President called the Vice President. I apologize for being impolite, but do you remember what she said her father called him? Julie Radford: The P word. Former President Donald Trump: I hope Mike is going to do the right thing. I hope so. I hope so. Because if Mike Pence does the right thing, we win the election. All Vice President Pence has to do is send it back to the states to recertify and we become President and you are the happiest people. And Mike Pence is going to have to come through for us. And if he doesn't, that will be a sad day for our country. And they want to recertify their votes. They want to recertify, but the only way that can happen is if Mike Pence agrees to send it back. So I hope Mike has the courage to do what he has to do. And I hope he doesn't listen to the RINOs (Republicans in Name Only) and the stupid people that he's listening to. Trump Supporter: It's real simple. Pence betrayed us. Which apparently everybody knew he was going to and the President mentioned it, like five times when he talked. You can go back and watch the President's video. January 6th Attendee: I'm telling you what, I'm hearing that Pence, I heard that Pence just caved? Is that true? I'm hearing reports that Pence caved. I'm telling you, if Pence caved, we're gonna drag motherfuckers through the streets. You fucking politicians are gonna get fucking drug through the streets. January 6th Streamer: Yeah, I guess the hope is that there's such a show of force here that Pence will decide to just do the right thing according Trump. January 6th Crowd: Where is Pence? Bring out Pence! [chanting] Hang Mike Pence, hang Mike Pence. Rep. Pete Aguilar (D-CA): Although the President's Chief of Staff, Mark Meadows, has refused to testify before this committee, Mr. Meadows aide Ben Williamson, and White House Deputy Press Secretary Sarah Matthews testified that Mr. Meadows went to the dining room near the Oval Office to tell the President about the violence at the Capitol before the President's 2:24pm tweet. Narrator: President Trump tweeted, "Mike Pence didn't have the courage to do what should have been done to protect our Country and our Constitution, giving states a chance to certify a corrected set of facts, not the fraudulent or inaccurate ones which they were asked to previously certify. USA demands the truth!" Rep. Pete Aguilar (D-CA): Our investigation found that immediately after the president's 2:24pm tweet, the crowds both outside the capitol and inside the Capitol surged. Rep. Pete Aguilar (D-CA): The crowds inside the Capitol were able to overwhelm the law enforcement presence and the Vice President was quickly evacuated from his ceremonial Senate office to a secure location within the Capitol Complex. January 6 Committee Lawyer: Mr. Jacob, immediately before you and the Vice President were evacuated to a secure location within the Capitol, you hit send on an email to John Eastman explaining why his legal theory about the Vice President's role was wrong. You ended your email by stating that, quote, "thanks to your bullshit, we are now under siege." And Dr. Eastman replied, and this is hard to believe, but his reply back to you was "the siege is because you and your boss," presumably referring to the Vice President, United States, "did not do what was necessary to allow this to be aired in a public way so the American people can see for themselves what happened." Mr. Jacob, later that day, you wrote again to Dr. Eastman. In that email, you wrote, and I quote, "did you advise the President that in your professional judgment the Vice President DOES NOT have the power to decide things unilaterally?" And you ended that email saying, "it does not appear that the President ever got the memo." Dr. Eastman then replied, "he's been so advised" and he ends him email with quote, "but you know him. Once he gets something in his head, it's hard to get him to change course," close quote. Greg Jacob: Late that evening, after the Joint Session had been reconvened, Mr. Eastman emailed me to point out that, in his view, the Vice President's speech to the nation violated the Electoral Count Act, that the Electoral Count Act had been violated because the debate on Arizona had not been completed in two hours. Of course, it couldn't be, since there was an intervening riot of several hours. And the speeches that the majority and minority leaders had been allowed to make also violated the Electoral Count Act because they hadn't been counted against the debate time. And then he implored me, "now that we have established that the Electoral Count Act isn't so sacrosanct as you have made it out to be, I implore you one last time, can the Vice President, please do what we've been asking him to do these last two days, suspend the Joint Session, send it back to the States." Eric Herschmann: The day after, Eastman asked me about something dealing with Georgia and preserving something, potentially for appeal. And I said to him, "Are you out of your effing mind?" Right? I said, "I only want to hear two words coming out of your mouth from now on: 'orderly transition.' I don't want to hear any other effing words coming out of your mouth, no matter what, other than orderly transition. Repeat those words to me." January 6 Committee Lawyer: And what did he said? Eric Herschmann: Eventually, he said "orderly transition." I said, "Good, John. Now I'm going to give you the best free legal advice you're ever getting in your life. Get a great effing criminal defense lawyer. You're going to need it." And then I hung up on him. Rep. Pete Aguilar (D-CA): In fact, just a few days later, Dr. Eastman emailed Rudy Giuliani and requested that he be included on a list of potential recipients of a Presidential pardon. Dr. Eastman did not receive his presidential pardon. June 13, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: William Stepien, Former Trump Campaign Manager Chris Stirewalt, Former Fox News Political Editor Benjamin Ginsberg, Election Attorney BJay Pak, Former United States Attorney for the Northern District of Georgia Al Schmidt, Former City Commissioner of Philadelphia Matt Morgan, Former General Counsel, Trump Campaign Clips 10:15 Rep. Liz Cheney (R-WY): On January 2, the General Counsel of the Trump campaign, Matthew Morgan, this is the campaign's chief lawyer, summarized what the campaign had concluded weeks earlier, that none of the arguments about fraud or anything else could actually change the outcome of the election. Matt Morgan: Generally discussed on that topic was whether the fraud, maladministration, abuse or irregularities, if aggregated and read most favorably to the campaign, would that be outcome determinative and I think everyone assessment in the room, at least amongst the staff, Mark Short, myself and Greg Jacob, was that it was not sufficient to be outcome determinative. 14:50 Former President Donald Trump: You know, the things with bundling and all of the things that are happening with votes by mail, where 1000s of votes are gathered, and I'm not gonna say which party does it but 1000s of votes are gathered and they come in and they're dumped in a location and then all of a sudden you lose elections that you think you're going to win. Former President Donald Trump: The only way we're going to lose this election is if the election is rigged. Remember that. The only way we're going to lose this election. Former President Donald Trump: This is going to be a fraud like you've never seen. Did you see what's going on? Take a look at West Virginia mailman selling the ballots. They're being sold. They're being dumped in rivers. This is a horrible thing for our country. This is not as no this is not going to end well. 29:40 Chris Stirewalt: In the 40 or 50 years, let's say, that Americans have increasingly chosen to vote by mail or early or absentee, Democrats prefer that method of voting more than Republicans do. So basically, in every election, Republicans win election day, and Democrats win the early vote. And then you wait and start counting. And it depends on which ones you count first, but usually, it's election day votes that get counted first, and you see the Republican shoot ahead. And then the process of bailing and binding and unbinding all those mail in votes, in some states, like Pennsylvania, refuse to count the votes first. So you have to wait for all of that to come in. So in every election, and certainly a national election, you expect to see the Republican with a lead, but it's not really a lead. When you put together a jigsaw puzzle, it doesn't matter which piece you put in first, it ends up with the same image. So for us, who cares? But that's because no candidate had ever tried to avail themselves of this quirk. In the election counting system, we had gone to pains, and I'm proud of the pains we went to, to make sure that we were informing viewers that this was going to happen because of the Trump campaign. And the President had made it clear that they were going to try to exploit this anomaly. And we knew it was going to be bigger, because the percentage of early votes was higher, right? We went from about 45% of the votes being early and absentee to, because of the pandemic, that increased by about 50%. So we knew it would be longer. We knew it would be more. So we wanted to keep telling viewers, "Hey, look, the number that you see here is sort of irrelevant because it's only a small percentage of these votes." 1:06:05 Former Attorney General Bill Barr: And I was somewhat demoralized because I thought, boy, if he really believes this stuff he has, you know, lost contact with -- he's become detached from reality if he really believes this stuff. On the other hand, you know, when I went into this and would, you know, tell them how crazy some of these allegations were, there was never, there was never an indication of interest in what the actual facts are. 1:10:25 Jeff Rosen: There were instances where the President would say, people are telling me this, or I've heard this, or I saw on television, you know, this, this impropriety in Atlanta or Pennsylvania or something, and we were in a position to say, people have already looked at that and we know that you're getting bad information that that's, that's not correct. It's been demonstrated to be incorrect from our point of view. 1:14:55 Richard Donoghue: I tried to, again put this in perspective and to try to put it in very clear terms to the President. And I said something to the effect of "Sir we've done dozens of investigations hundreds of interviews. The major allegations are not supported by the evidence developed. We've looked at Georgia, Pennsylvania, Michigan, Nevada. We're doing our job. Much of the info you're getting is false." June 9, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: U.S. Capitol Police Officer Caroline Edwards Nick Quested, Filmmaker and Documentarian Clips Bill Bar: I had three discussions with the President that I can recall. One was on November 2, one was on December 1, and one was on December 14. And I've been through sort of the give and take of those discussions. And in that context, I made it clear I did not agree with the idea of saying the election was stolen and putting out this stuff, which I told the President was bullshit. Robert Schornack: What really made me want to come was the fact that, you know, I had supported Trump all that time. I did believe, you know that the election was being stolen. And Trump asked us to come. Eric Barber: He personally asked for us to come to DC that day. And I thought, for everything he's done for us, if that's the only thing he's gonna ask me, I'll do it. Former President Donald Trump: We're gonna walk down to the Capitol. Interviewer: Do you recall President Trump mentioning going to the Capitol during his speech? Eric Barber: Oh, yeah. So that's one of my disappointments. He said he was gonna go go with us that he was gonna be there. John Wright: I know why I was there. And that's because he called me there. And he laid out what is happening in our government. He laid it out. George Meza: I remember Donald Trump telling people to be there. Right. I mean, to support. Interviewer: You mentioned that the President asked you. Do you remember a specific message? Daniel Herendeen: Basically, he asked for us to come to DC and big things are gonna happen. Matthew Walter: What got me interested is he said I have something very important to say on January 6, or something like that. That's what got me interested to be there. Robert Schornack: You know, Trump has only asked me for two things. He asked me for my vote and he asked me to come on January 6. May 12, 2021 House Committee on Oversight and Reform Witnesses: Chris Miller, Former Acting Secretary of Defense Robert Contee, Chief of the Metropolitan Police Department Clips 40:52 Rep. Carolyn Maloney (D-NY): Mr. Miller, you were the Acting Secretary of Defense on January 6th, did President Trump as the commander in chief of the US Armed Forces call you during the January 6 attack to ensure the capital was being secured? Mr. Miller? Chris Miller: No, I had all the authority I needed from the president to fulfill my constitutional duties. 3:12:18 Rep. Hank Johnson (D-GA): Were you ordered to delay deployment of troops? Chris Miller: 110% Absolutely not. No, that is not the case. February 23, 2021 Senate Committee on Homeland Security and Governmental Affairs and Committee on Rules and Administration Witnesses: Robert Contee, Acting Chief of Police for the Metropolitan Police Department Steven Sund, Former Chief of the United States Capitol Police Clips 39:21 Robert Contee: MPD is prohibited by federal law from entering the Capitol or its grounds to patrol, make arrests or served warrants without the consent request of the Capitol Police board. 39:32 Robert Contee: The President of the United States, not the Mayor of the District of Columbia, controls the DC National Guard. 1:05:36 Sen. Amy Klobuchar (D-MN): Mr. Sund, you stated in your written testimony that you first made a request for the Capitol Police board to declare an emergency and authorized National Guard support on Monday January 4th, and that request was not granted. Steven Sund: That is correct, ma’am. 1:05:47 Sen. Klobuchar (D-MN): Your testimony makes clear that the current structure of the Capitol Police corps resulted in delays in bringing in assistance from the National Guard. Would you agree with that? That’s one of the things we want to look at. Steven Sund: Yes, ma’am. 1:07:23 Sen. Klobuchar (D-MN): Mr. Sund your written testimony states that you had no authority to request the assistance of the National Guard without an emergency declaration of the Capitol Police board. On what rule, regulation or authority did you base that view? Steven Sund: I’d have to go back and look at the specific rule, but it’s a standard. It’s a standing rule that we have. I cannot request the National Guard without a declaration of emergency from the Capitol Police board. It’s kind of interesting because it’s very similar to the fact you know, I can’t even give my men and women cold water on an excessively hot day without a declaration of emergency. It’s just a process that’s in place. 2:39:22 Sen. Jeff Merkley (D-OR): Have you ever held a drill to respond this situation where a crowd pushes past the exterior barricades? Steven Sund: Not this level of situation no, sir. Executive Producer Recommended Sources Jul 19, 2022. U.S. Senator Bernie Sanders. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
FTX, at one point the world’s third largest cryptocurrency exchange, went bankrupt, causing the entire cryptocurrency industry to crash. In this episode, hear highlights from Congressional testimony that will explain how FTX was able to grow so large while committing blatant fraud, how it’s possible that the government didn’t know and didn’t do anything to stop it, and hear about a Senate bill that’s branded as a solution but has concerning flaws of it’s own. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes What is FTX? Timothy Smith. Dec 22, 2022. Investopedia. Crypto Regulation Kyle Barr. Dec 1, 2022. Gizmodo. David Dayen. Nov 23, 2022. The American Prospect. David Dayen. Nov 17, 2022. The American Prospect. David Dayen. Nov 10, 2022. The American Prospect. Tom Emmer et al. Mar 16, 2022. emmer.house.gov. Lead-up to FTX Collapse Elizabeth Napolitano. Nov 9, 2022. NBC News. Tom Wilson and Angus Berwick. Nov 8, 2022. Reuters. Tracy Wang and Oliver Knight. Nov 6, 2022. Tracy Wang and Oliver Knight. Nov 6, 2022. CoinDesk. Ian Allison. Nov 2, 2022. CoinDesk. Seth. P Rosebrock, Assistant General Counsel, Enforcement, FDIC. Aug 18, 2022. FDIC. Tom Emmer André Beganski. Dec 11, 2022. Decrypt. Tony Romm. Dec 8, 2022. The Washington Post. Emily Brooks and Mychael Schnell. Nov 15, 2022. The Hill. FTX Collapse Shane Shifflett, Rob Barry, and Coulter Jones. Dec 5, 2022. The Wall Street Journal. Alexander Osipovich. Dec 3, 2022. The Wall Street Journal. David Gura. Nov 23, 2022. NPR. Steven Zeitchik. Nov 20, 2022. The Washington Post. Nov 17, 2022. PACER. Angus Berwick. Nov 11, 2022. Reuters. Jacob Bogage and Tory Newmyer. Nov 11, 2022. The Washington Post. Vicky Ge Huang, Alexander Osipovich, and Patricia Kowsmann. Nov 11, 2022. The Wall Street Journal. Lobbying and Campaign Donations Tory Newmyer and Steven Zeitchik. Dec 1, 2022. The Washington Post. Tory Newmyer and Peter Whoriskey. Nov 28, 2022. The Washington Post. Tony Romm. Nov 17, 2022. The Washington Post. Paul Kiernan. Nov 14, 2022. The Wall Street Journal. Brian Schwartz. Nov 14, 2022. CNBC. Tory Newmyer. Nov 12, 2022. The Washington Post. Luis Melgar et al. Oct 24, 2022. The Washington Post. Freddy Brewster. Aug 12, 2022. Los Angeles Times. Aftermath of the FTX Collapse Dec 12, 2022. Reuters. Emily Flitter, David Yaffe-Bellany and Matthew Goldstein. Dec 7, 2022. The New York Times. Alexander Osipovich, Alexander Saeedy and Alexander Gladstone. Dec 4, 2022. Mar 10, 2022. Cryptopedia. December 13 Hearing Dec 8, 2022. House Financial Services Committee. House Financial Services Committee. Sam Bankman-Fried Indictment Dec 13, 2022. The New York Times. Bills Audio Sources December 13, 2022 House Committee on Financial Services Witness: John J. Ray III, CEO, FTX Group Clip Transcripts Rep. Emanuel Cleaver (D-MO): Have you read the full testimony that was planned by our missing guest [Sam Bankman-Fried]? John Ray I have not read his full testimony. Some pieces of it been relayed to me, but I've not read it. I've not read one word of it actually. Rep. Emanuel Cleaver (D-MO): Yeah, I don't know him personally and probably don't want to. But this testimony is so disrespectful. I mean, there's not a person up here would like to show this to their children. In line two of this message, he says, and I quote, "I would like to start out by firmly stating under oath...* And yeah, I can't even say it publicly. The next two words, absolutely insulting. This is the Congress of the United States. Rep. Warren Davidson (R-OH): So when when customers deposited funds into their FTX accounts, where did the cash go? John Ray: Well, sometimes the money wasn't deposited in the FTX account it was sent to Alameda to begin with. Rep. Warren Davidson (R-OH): It was misdirected from from the start straight to Alameda. John Ray: There was certainly some time period where there's no bank account at .com and then ultimately, if you look at the structure of this, Alameda is essentially a customer on that .com exchange, and effectively, you know, borrowed money from or just transferred money from FTX customers to take its own positions on the Alameda hedge fund. Rep. Patrick McHenry (R-NC): So Alameda research and the venture capital business, what did Alameda research do? John Ray: Essentially made crypto investments, engaged in margin trading, took long and short positions in crypto, essentially invested in crypto. But of course, we now know also invested in over $5 billion of other assets which are in a variety of sectors. Patrick McHenry (R-NC): Can you describe the differences between the FTX.com and FTX.us silos? John Ray: Yes. Very simply FTX.us was for US citizens who wanted to trade crypto; FTX.com, US citizens were not allowed to trade on that exchange. That's very simple. And I would make one other comment, which is separate apart from any of those two silos. It was ledger x, which is a regulated entity regulated by the CFTC, solvent and separate from the FTX.us silo. Patrick McHenry (R-NC): Okay, and that is a distinct silo, that's a distinct company? John Ray: That is a distinct company within the US silo, yes. Patrick McHenry (R-NC): Okay. Patrick McHenry (R-NC):: What was the relationship between FTX.com and FTX.us? Was is there a distinction between the two? John Ray: There was a public distinction between the two. What we're seeing now is that the crypto assets for both ftx.com and for FTX.us were housed in the same database. It's called the AWS system, which is just an acronym for Amazon Web Services. It was all housed in the same web format. Patrick McHenry (R-NC):: And is that distinct from Alameda's assets? John Ray: Yes, it is. John Ray: In essence you know, Alameda was a user, effectively a customer, of FTX.com. That's how it was essentially structured. John Ray: There was no audit at Alameda, no audit at the venture silo. There was audit at the US silo and also audit at the the .com silo. I can't speak to the integrity or quality of those audits. We're reviewing, obviously, the books and records. And as I've said earlier, you know, much of those books and records were maintained on a fairly unsophisticated ledger ledger which works workbooks. John Ray: It's an extensive list, it really crosses the entire spectrum of the company, from lack of lists of bank accounts, hundreds of bank accounts dispersed all over the world, lack of a complete list of employees and their functions by group or name, extensive use of independent contractors as opposed to employees, lack of insurance that you'd normally would see in certain businesses, either inadequate insurance or complete gaps in insurance. For example, the Alameda silo had no insurance whatsoever. So those are I mean, there's, the list goes on and on. You know, we could spend all day on them. John Ray: While many things are unknown at this stage, we're at a very preliminary stage, many questions remain, we know the following. First customer assets at ftx.com were commingled with assets from the Alameda trading platform. That much is clear. Second, Alameda used client funds to engage in margin trading, which exposed customer funds to massive losses. Third, the FTX group went on a spending binge in 2021 and 2022, during which $5 billion was spent on a myriad of businesses and investments, many of which may only be worth a fraction of what was paid for them. Fourth, loans and other payments were made to insiders in excess of $1.5 billion. Fifth, Alameda's business model as a market maker required funds to be deployed to various third party exchanges, which were inherently unsafe and further exacerbated by the limited protections offered in certain of those foreign jurisdictions. John Ray: I accepted the position of Chief Executive Officer of FTX in the early morning hours of November 11 [2022]. It immediately became clear to me that chapter 11 was the best course available to preserve any remaining value of FTX. Therefore, my first act as CEO was authorized the chapter 11 filings. John Ray: It's virtually unlimited in terms of the lack of controls: no centralized records on banking, no daily reconciliations of crypto assets, silos where there's no insurance, inadequate insurance, no independent board, no safeguards that limit, who controls and asset. So senior management literally could get access to any of the accounts in any of the silos. No separateness between customer money and other customer money or other other assets. It's virtually unlimited in terms of the lack of controls. And that's really the point of the unprecedent comment. I've just never seen anything like it in 40 years of doing restructuring work and corporate corporate legal work. It's just a dearth of of information. John Ray: But again, users had multiple accounts. For example, if they had a different trading position, they may have opened multiple accounts. We know it's a big number. It's in the millions on the customer accounts, and we know it's several billion dollars in losses. Assigning those losses to customer accounts will be our next challenge. John Ray: The FTX group's collapse appears to stem from absolute concentration of control in the hands of a small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company entrusted with other people's money or assets. Some of the unacceptable management practices identified so far include the use of computer infrastructure that gave individuals and senior management access to systems that stored customers' assets without security controls to prevent them from redirecting those assets; the storing of certain private keys to access hundreds of millions of dollars in crypto assets without effective security controls or encryption; the ability of Alameda to borrow funds held at FTX.com to be utilized for its own trading or investments without any effective limits whatsoever; the commingling of assets; the lack of complete documentation for transactions involving nearly 500 separate investments made with FTX group funds and assets. In the absence of audited or reliable financial statements, the lack of personnel and financial and risk management functions, and the absence of independent governance throughout the FTX group, a fundamental challenge we face is there in many respects we are starting from near zero in terms of the corporate infrastructure and record keeping that one would expect in a multibillion dollar corporation. John Ray: The FTX group is unusual in the sense that, you know, I've done probably a dozen large scale bankruptcies over my career, including Enron, of course. Every one of those entities had some financial problem or another, they have some characteristics that are in common. This one is unusual. And it's unusual in the sense that literally, you know, there's no record keeping whatsoever. It's the absence of record keeping. Employees would communicate, you know, invoicing and expenses on on Slack, which is essentially a way of communicating for chat rooms. They use QuickBooks, a multibillion dollar company using QuickBooks. Rep. Ann Wagner (R-MO): QuickBooks? John Ray: QuickBooks. Nothing against QuickBooks, it's very nice tool, just not for a multibillion dollar company. There's no independent board, right? We had one person really controlling this. No independent board. That's highly unusual in the size company this is. And it's made all the more complex because we're not dealing with, you know, widgets or, you know, something that's tangible. We're dealing with with with crypto, and the technological issues are made worse when you're dealing with an asset such as crypto. John Ray: I've just never seen an utter lack of record keeping. Absolutely no internal controls whatsoever. John Ray: The operation of Alameda really depended based on the way it was operated for the use of customer funds. That's the major breakdown here of funds from ftx.com, which was the exchange for non US citizens, those funds were used at Alameda to make investments and other disbursements. John Ray: There's no distinction whatsoever. The owners of the company could really run free reign across all four silos. John Ray: The loans that were given to Mr. Bankman-Fried, not just one loan it was numerous loans, some of which were documented by individual promissory notes. There's no description of what the purpose of the loan was. In one instance, he signed both as the issuer of the loan, as well as the recipient of the loan. But we have no information at this time as to what the purpose or the use of those funds were. And that is part of our investigation. John Ray: At the end of the day, we're not going to be able to recover all the losses here. Money was spent that we'll never get back. There will be losses on the international side. We're hopeful on the US side. He'll answer to others related to what happened here. Our job is just to find the assets and try to get customers their money back as quickly as possible. John Ray: Essentially, they had two exchanges that allowed users to trade crypto, and then there was the hedge fund. It's as simple as that. The users were allowed to make a variety of investments. They had a more expansive ability to trade crypto if you are a non-U.S. citizen on the .com exchange, but I know what's been described publicly is very complex. It is to some extent, but essentially, you had two exchanges, and you had a hedge fund. Inside both the US silos I've mentioned and inside the silos for .com there were regulated entities. We have regulated entities that are, for example, in Japan that are solvent, we had a regulated entity, ledger X, that was solvent. Those are sort of distinct from the other basic operations that we had, which are the two exchanges. John Ray: The principal issue that the company is facing in the crypto area, and from a technology perspective, it is different from the other bankruptcies because it's not a plane, not a boat. It's this crypto asset and it has inherently some difficulties. You know, the assets can be taken or lost. We have assets there in what are called Hot wallets, and those are in cold wallets. Hot wallets are very vulnerable to to hacking. If you've done any looking on the internet, you'll find that hacking is almost ordinary course in this business sector. They're very, lots of vulnerability to the wallets. So that's this company, unfortunately had a very, very challenging record here. You know, for some transfers there was no pathway for it. Our keys aren't stored in a centralized location. We don't know where all of our wallets are. Passwords were sometimes kept in just plain text format. So this company was sort of uniquely positioned to fail. John Ray: So funds were taken from customers, funds were invested, trading losses incurred in Alameda and then funds were deployed, that will never be valued at the same dollar amount. There was over $5 billion of investments made. Certainly, there's some value there and we'll try to get that value and sell those assets. But oftentimes, even when he made those sorts of investments, whether it was directly or through others in management, sometimes he would do that really without any pro forma or any valuation. Not really quite sure how some of the purchase price numbers were derived. So it gives you a sort of worry obviously, that the purchases were overvalued so there's a concern there as well. John Ray: Alameda was a customer, if you will, of the exchange and it's through that customer relationship, plus other arrangements, that allowed Alameda to borrow those funds, and then pick positions on the exchange like anyone, you know, who would hedge an asset in the market. He had unusually large positions, of course, and sometimes they were wrong in those positions, and they resulted in big losses. But ultimately, the commingling issue is the same in a different issue. He took the money from FTX to cover those positions and ultimately, when customers went to get their money back from .com there was a run on the bank. John Ray: The Alameda fund, well that's just the fund that drew resources from the exchanges, so it's really separate, it was not for customers per se, it was just simply a hedge fund. John Ray: For structural purposes and just for ease of presentation, we tried to take the over 100 entities and we put those in four silos. To demystify that, it's very simple. There was a U.S. silo, which was the FTX.us exchange for US investors. There was an international exchange called FTX.com. Again, for non-U.S. persons that invested in crypto. There was Alameda, which is purely a crypto hedge fund, which made other investments, venture capital type investments. Then there's a fourth entity which was purely investments. And although our investigation is not complete, those investments were most likely made with either Alameda money or money that originally came from ftx.com. But that fourth silo is just purely investments Rep. Patrick McHenry (R-NC): And who owned those four silos? John Ray: All those entities are owned or controlled by Sam Bankman-Fried. Rep. Brad Sherman (D-CA): Now I've heard from some on the other side criticizing the SEC and in July in this room I criticized the Head of Enforcement at the SEC for not going after crypto exchanges. But the fact is that without objection I'd like to put on the record a letter signed by 19 Republican members designed to push back on the SEC, a brushback pitch if you're familiar with baseball, attacking the SEC for paying attention to and I quote, "the purported risks of digital assets." And I'd like to put on the record without objection comments from eight members made in this room that were designed to attack the SEC as being Luddite and anti-innovation for their efforts. Rep. Nydia Velázquez (D-NY): Mr. Ray, a number of their debtors in the FTX group are located in offshore jurisdictions. Will this complicate the efforts to retrieve the assets of those there? If so why? John Ray: No, I don't think it will complicate it at all. The various jurisdictions, historically in bankruptcy, and I've been in a number of cross border situations, the jurisdictions will cooperate with each other. The regulators in all these jurisdictions, I think, realize that everyone's there for a common purpose, to protect the victims and recover assets for the victims of these situations. Rep. Nydia Velázquez (D-NY): How much have you been able to secure and where are most of these assets located? John Ray: We've been able to secure over a billion dollars of assets. We've secured those two cold wallets in a secure location. It's an ongoing process, though, which will take weeks and perhaps months to secure all the assets. Rep. Nydia Velázquez (D-NY): Are most creditors located in the US or foreign jurisdictions. John Ray: The majority of the creditors trade through the .com silo and are outside of this jurisdiction, although there are some foreign customers that are on the US silo, and vice versa. Rep. Ann Wagner (R-MO): Reports suggest that ftx.com transferred more than half of its customer funds, roughly $10 billion, to Alameda research. Is that accurate, sir? John Ray: Our work is not done, we don't have exact numbers for you today, but I will say it's several billion dollars, in that range, so we know that the size of the harm was significant. Rep. Maxine Waters (D-CA): Have you seen evidence of such a cover up? Have you seen evidence that there was any independent governance of Alameda separate and apart from that of the exchange? John Ray: The operations of the FTX group were not segregated. It was really operated as one company. As a result, there's no distinction virtually, between the operations of the company and who controlled those operations. Rep. Maxine Waters (D-CA): Did FTX have sufficient risk management systems and controls to appropriately monitor any leverage the business took on and the interconnections it had with businesses, like again, Alameda. John Ray: There were virtually no internal controls and no separateness whatsoever. December 1, 2022 Senate Committee on Agriculture, Nutrition, and Forestry Witness: Rostin Behnam, Chairman, Commodity Futures Trading Commission Clip Transcripts 18:30 Debbie Stabenow (D-MI): I've said this before and I'll say it again: the Digital Commodities Consumer Protection Act does not -- does not -- take authority away from other financial regulators. Nor does it make the CFTC the primary crypto regulator, because crypto assets can be used in many different ways. No single financial regulator has the expertise or the authority to regulate the entire industry. 24:30 John Boozman (R-AK): Many have asked why is the Ag Committee involved in this? The Ag Committee is involved because this committee and no other committee in the Senate is responsible for the oversight of the nation's commodity markets. Bitcoin, although a crypto currency, is a commodity. It's a commodity in the eyes of the federal courts and the opinion of the SEC Chairman, there is no dispute about this. If there are exchanges where commodities are traded, be it wheat, oil, or Bitcoin, then they must be regulated. It's simply that simple. 32:45 Rostin Behnam: I have asked Congress directly for clear authority to impose our traditional regulatory regime over the digital asset commodity market. 33:00 Rostin Behnam: I have not been shy about my encouragement of bills that contemplate shared responsibility for the CFTC and the Securities Exchange Commission, where the SEC would utilize its existing authority and reporting regime requirements for all security tokens, while the CFTC would apply its market based rules for the more limited subset of commodity tokens, which do not have the same characteristics of security tokens. 41:00 Rostin Behnam: I can though share with this committee with respect to me, my team and I have taken an initial review of my calendar and what we've observed is that my team and I met with Mr. Bankman-Fried and his team. Over the past 14 months, we met 10 times in the CFTC office at their request, all in relation to this DCO this Clearinghouse application. Nine out of the 10 times we were in Washington, one was at a widely held conference in Florida earlier this year. In addition, there were two phone calls, I believe, and a number of messages, all in relation to the DCO application, providing us updates suggesting that they were answering questions from different divisions, and trying as I said, to doggedly move the application along and to get it approved. 48:00 Sen. John Boozman (R-AK): If ftx.com had been a registered U.S. exchange, would the CFTC have been able to mitigate what happened. Rostin Behnam: Senator, you know, with our current authority, the answer is now. We need the authority to get into a CFTC registered exchange, as you point out. If we had that authority, and they were registered, given what we know from the facts about conflicts of interest, commingling funds, books and records, we would have been able to prohibit it. And I would point to what we're doing with Ledger X. On a daily basis our staff is in direct communication not only with Ledger X, but the custodians themselves, able to identify customer property, and customer money. Imagine that scenario with FTX.us if we had a daily lens into the location of customer money and customer property, you can imagine, given what we've learned about what's happened with FTX, we could have certainly prohibited many of the actions that we're hearing about. 1:16:00 Rostin Behnam: In terms of regulation of cash markets, right, the spot market, we simply do not have authority to register cash market exchanges or any intermediary broker dealer entity within that structure and that's what concerns me, this is the gap. 1:59:30 Rostin Behnam: Unfortunately, when we act, it's often after the fact because the information that allows us to bring an enforcement action in digital asset cash commodity markets, is only because information is coming to us from outsiders, from referrals, from tips, from whistleblowers, and this is in stark contrast to some of the surveillance tools and examination tools that we would have if we had a comprehensive regulatory framework over digital asset commodities. 2:07:00 Sen. Dick Durbin (D-IL): There'll be a reporter waiting in the hall -- I've already talked to her this morning -- who will ask you, "Did he ever contribute to your campaign?" I said "Oh, no, I never heard of the man." She said "You're wrong, Senator, he contributed to you." So the cryptocurrency people are active politically. And they are trying to achieve a political end here. It is their right as citizens of this country to do that. But it really calls on us to make sure that whatever we do is credible under those circumstances. 2:22:30 Rostin Behnam: I can't speak to what Mr. Bankman-Fried or anyone at FTX was thinking when they were advocating for regulation, but the remarkable thing is to think about it in the context of compliance and what we've learned about the FTX entities and just thinking about the bill that Senator Stabenow and Boozman introduced, they would have been so far out of compliance that it just wouldn't have even been possible. September 15, 2022 Senate Committee on Agriculture, Nutrition, and Forestry Witnesses: Rostin Behnam, Chairman, Commodity Futures Trading Commission Todd Phillips, Director, Financial Regulation and Corporate Governance, Center for American Progress Shelia Warren, Chief Executive Officer, Crypto Council for Innovation Christine Parker, Vice President, Deputy General Counsel, Coinbase Heath Tarbert, Chief Legal Officer, Citadel Securities Denelle Dixon, Chief Executive Officer, Stellar Development Foundation December 8, 2021 House Committee on Financial Services Witnesses: Jeremy Allaire, Co-Founder, Chairman and CEO, Circle Samuel Bankman-Fried, Founder and CEO, FTX Brian P. Brooks, CEO, Bitfury Group Charles Cascarilla, CEO and co-Founder, Paxos Trust Company Denelle Dixon, CEO and Executive Director, Stellar Development Foundation Alesia Jeanne Haas, CEO, Coinbase Inc. and CFO, Coinbase Global Inc. Clip Transcripts 23:30 Sam Bankman-Fried: We are already regulated and licensed. We have many licenses globally. Here in the United States, we are regulated by the states under the money service business and money transmitting regime, and we are regulated nationally by the CFTC where we have a DCO, a DCM, a swap execution facility, and other licensure. 1:13:30 Sam Bankman-Fried: One of the really innovative properties of cryptocurrency markets are 24/7 risk monitoring and engines. We do not have overnight risk or weekend risk or holiday risk in the same way traditional assets do, which allow risk monitoring and de risking of positions in real time to help mitigate volatility. We've been operating for a number of years with billions of dollars of open interest. We've never had customer losses, clawbacks or anything like that. Even going through periods of large movements in both directions. We store collateral from our users in a way which is not always done in the traditional financial ecosystem to backstop positions. And the last thing that I'll say is if you look at what precipitated some of the 2008 financial crisis, you saw a number of bilateral bespoke non-reported transactions happening between financial counterparties which then got repackaged and releveraged again and again and again, such that no one knew how much risk was in that system until it all fell apart. If you compare that to what happens on FTX or other major cryptocurrency venues today, there is complete transparency about the full open interest. There is complete transparency about the positions that are held. There is a robust, consistent risk framework. 1:34:00 Sam Bankman-Fried: In addition to a bunch of international licenses in the United States, we are participating in that system you referenced with the money transmitter and money service businesses license is in addition to that, however, we are also licensed by the CFTC. We have a DCO, a DCM, and other licensure from them through FTX.us derivatives and we look forward to continuing to work with them to build out our product suite. We just submitted a 800 page, I believe, proposal to them a few days ago, which we're excited to discuss and we're also happy to talk with other regulators about potential products in the United States. 2:37:00 Rep. Tom Emmer (R-MN): Now it's my understanding that FTX uses surveillance trade technology akin to the technology national Securities Exchanges use to protect investors and ensure sound spot markets. What does this technology and any other tools FTX uses to protect the spot market from fraud and manipulation look like? Sam Bankman-Fried: Yeah. So, you know, like other exchanges, we do have these technologies in addition to the, you know, new customer policies that we can identify individuals associated with trades. We have surveillance for unusual trading activity. We have manual inspections of anything that you know, gets flagged either by the automated surveillance or by manual inspection. And we do this with the trading activity with deposits and withdrawals and everything else. Rep. Tom Emmer (R-MN): Sounds like you're doing a lot to make sure there is no fraud or other manipulation. Thank you Mr. Bankman-Fried, again, for helping us understand the extensive guardrails a cryptocurrency exchange like FTX has in place to ensure sound crypto spot markets for investors. 2:52:30 Rep. Cindy Axne (D-Iowa): Mr. Bankman-Fried, I'd like to start by asking you the first question. FTX.us has a derivatives platform and recently bought ledger x as part of that. Is that correct? Sam Bankman-Fried: Yes. Rep. Cindy Axne (D-Iowa): Okay, thank you. And that platform is registered with the CFTC. Is that correct? Sam Bankman-Fried: Yep. Rep. Cindy Axne (D-Iowa): Okay, perfect. So I just want to clarify something. And this isn't to say anybody's doing any wrong. It's just to get the lay of the land. You also have an exchange for Bitcoin and other tokens, but that is not registered with either the CFTC or the SEC. Is that correct? Sam Bankman-Fried: That's correct. Currently, neither of them are primary markets regulated for spot Bitcoin to USD markets. Rep. Cindy Axne (D-Iowa): Okay, thank you. And I know you're registered as a money transmitter, but that's not the same kind of oversight that we'll see from a federal market regulator. I also sit on the Agriculture Committee, which oversees the CFTC, so a gap like this is especially concerning to me. And the big problem that I see here, from what I understand, is that the CFTC doesn't have regulatory authority for spot trading of commodities, just their derivatives. So that leaves consumers with inconsistent protections, which is a concern that I have. 2:55:00 Rep. Cindy Axne (D-Iowa): Bitcoin, which has almost a trillion dollars invested in it, has CFTC oversight for people who are trading futures and options, but not for people who are trading the currency itself. Is that right? Sam Bankman-Fried: That is essentially correct. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
FTX, a large cryptocurrency exchange, recently went bankrupt, leading to calls for government regulation of cryptocurrencies. But you might be wondering, what are cryptocurrencies? In part one of this two-part series, listen to expert testimony provided over a four-year period informing Congress about the cryptocurrency industry, the promise of blockchain, problems - both real and overblown - with this new technology, and how best to regulate this complicated industry. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Proof of Work Jake Frankenfield. May 2, 2022. Investopedia. Initial Coin Offering (ICO) Jake Frankenfield. Aug 18, 2022. Investopedia. Sherwin Dowlat. Jul 11, 2018. Satis Group. Madison Cawthorn The Associated Press. Dec 7, 2022. NPR. Regulations Cheyenne Ligon. Dec 5, 2022. CoinDesk. Bills Sponsor: Sen. Debbie Stabenow Audio Sources January 20, 2022 House Committee on Energy & Commerce, Subcommittee on Oversight and Investigations Witnesses: , Weill Family Foundation and Joan and Sanford I. Weill Professor, Jacobs Technion-Cornell Institute, Cornell Tech , Chief Executive Officer, Soluna Computing, Inc. , Chief Executive Officer, BitFury , Former Chief Executive Officer, Chelan County Public Utility District and Bonneville Power Administration , Shareholder Jordan Ramis P.C. June 16, 2021 House Committee on Financial Services, Subcommittee on National Security, International Development and Monetary Policy Witnesses: , Global Head of Policy & Regulatory Affairs, Chainalysis , Senior Director, Center on Economic and Financial Power, Foundation for Defense of Democracies February 25, 2021 House Financial Services Committee, Subcommittee on National Security, International Development and Monetary Policy Witness , Former Assistant Secretary for Terrorist Financing and Financial Crimes, U.S. Department of the Treasury July 30, 2019 Senate Committee on Banking, Housing, and Urban Affairs Committee concluded a hearing to examine regulatory frameworks for digital currencies and blockchain, including S. 2243, to amend the Expedited Funds Availability Act to require that funds deposited be available for withdrawal in real-time. Witnesses: , Co-Founder, Chairman and Chief Executive Officer, Circle, on behalf of The Blockchain Association , Specialist in International Trade and Finance, Congressional Research Service , Professor of Law, University of California, Irvine School of Law October 11, 2018 Senate Committee on Banking, Housing, and Urban Affairs Committee concluded a hearing to examine the cryptocurrency and blockchain ecosystem, including S. 3179, to require the Comptroller General of the United States to carry out a study on how virtual currencies and online marketplaces are used to buy, sell, or facilitate the financing of goods or services associated with sex trafficking or drug trafficking. Witnesses: , Professor of Economics and International Business, New York University Stern School of Business , Director of Research, Coin Center Cover Art Design by Only Child Imaginations Music Presented in This Episode by
The results are in: The Democrats will keep the Senate, the Republican will take the House. In this episode, in preparation for the 118th Congress, Jen analyzes the detailed policy documents released by the House Republicans to see what they could reasonably accomplish, who their policies would help or hurt, and how they will likely wield their power in a politically divided Congress. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Southern Border David J. Bier. Sep 14, 2022. Cato Institute. May 2022. The Healthy Future Task Force. Jul 2022. American Security Task Force. American Federation of Teachers. Sean Altekruse et al. January 17, 2020. PLOS One 15(1). Tiffany Stecker. Feb 20, 2019. Bloomberg Law. Censorship Sep 2022. China Sep 2022. China Task Force. Commitment to America Megan Loe. Oct 25, 2022. Verify. House Republicans. House Republicans. Sep 20, 2022. House Republicans. Sep 2022. Jobs and the Economy Task Force. Energy and the Environment August 9, 2022. The Energy, Climate, & Conservation Task Force. Mining Sep 2022. The Energy, Climate, & Conservation Task Force. John Emeigh. Jun 2, 2022. KXLF Butte. Betsy Smidinger. August 30, 2021. U.S. Environmental Protection Agency. U.S. Environmental Protection Agency. Ryan DeMars. 2012. Teach the Earth. Clark Fork Watershed Education Program. Dams Mar 2, 2021. MIT Climate Portal. Fossil Fuels Jun 17, 2022. The Energy, Climate, & Conservation Task Force. Jun 10, 2022. The Energy, Climate, & Conservation Task Force. Jeff Brady and Neela Banerjee. Jun 9, 2021. Gutting Environmental Law Jun 10, 2022. The Energy, Climate, & Conservation Task Force. Pesticides Jul 15, 2022. The Energy, Climate, & Conservation Task Force. Jul 8, 2021. Cancer Treatment Centers of America. Emily Dixon. Feb 15, 2019. CNN. Water May 11, 2015. NPR. Seth Siegel with Naty Barak. Jun 1, 2017. Real Assets Adviser 4(6). Healthcare Aug 2022. The Healthy Future Task Force. Jul 2022. The Healthy Future Task Force. Jun 2022. The Healthy Future Task Force. Jun 2022. The Healthy Future Task Force. Financial Regulations Sep 2022. Jobs & the Economy Task Force. Sep 2022. Jobs & the Economy Task Force. Jun 2022. The Energy, Climate, & Conservation Task Force. Parents Bill of Rights Committee on Education & Labor Republicans. Committee on Education & Labor Republicans. 2014 Government Funding 113th Congresss. 113th Congress. Oct 16, 2013. Clerk of the U.S. House of Representatives. Workforce Education Jul 2022. Jobs & the Economy Task Force. Speak Out Act 117th Congress. Emilie Shumway. Nov 16, 2022. Legal Dive. Respect for Marriage Act 117th Congress. Annie Karni. Nov 16, 2022. The New York Times. Maggie Astor. Nov 16, 2022. The New York Times. Al Weaver. Nov 16, 2022. The Hill. Soon-to-be Laws Audio Sources Sep 23, 2022 Kevin McCarthy on YouTube Clips Rep. Jim Jordan (R-OH): They told us so many things that turned out not to be accurate. I mean, just think about it, they told us this thing didn't come from a lab. Sure looks like it did. But they want us to believe it was a bat to a penguin to Joe Rogan. And then we all got, it right? I'm just a country boy from Ohio. But I kind of think it probably came from a lab. I asked Dr. Burks a question three months ago in a hearing. I said Dr. Burks, when the Biden administration told us that the vaccinated couldn't get it, were they guessing or lying? Interesting. She paused and said, Well, Congressman, I like to think they hoped. I said, so it was a guess, a lie, or a hope. I'm not against the vaccine. I'm just saying that we're big boys and girls, we can handle the truth. Give us the facts. We are committed to doing the investigations that need to be done. Rep. Kevin McCarthy (R-CA): On our very first bill we're going to repeal 87,000 IRS agents. Rep. Kevin McCarthy (R-CA): We believe in fairness. We should ensure women only compete in women's sports. Rep. Steve Scalise (R-LA): We will have oversight hearings on what happened. Who was responsible for opening up America's southern border? How many have come in? How many are on the terrorist watch list that we know of, and when will we start doing something about it? In our commitment to America, we talk about securing America's border and holding them accountable. We will give Secretary Mayorkas a reserved parking spot, he will be testifying so much about this. So that's the kind of oversight we're going to be doing. February 5, 2014 “Little fish” montage featuring Former Rep. Doc Hastings (R-WA), Former Rep. Devin Nunes (R-CA), and Rep. Kevin McCarthy (R-CA). October 8, 2013 Rep. Pete Sessions (R-TX): I am very proud of not only what our Speaker is doing but of our majority leader, ERIC CANTOR, and our whip, KEVIN MC CARTHY. October 1, 2013 Former Rep. Phil Gingrey (R-GA): In fact, House Republicans have passed three continuing resolutions, or temporary spending bills, to keep this government open and to either defund or to delay ObamaCare—which the majority of Americans support. They were against it 31⁄2 years ago; they are against it today; and they support what we are doing in the Republican House of Representatives. I praise and commend Speaker JOHN BOEHNER and the leadership of ERIC CANTOR and KEVIN MCCARTHY for the strength that they have had in regard to this and for being so inclusive for every single member of our caucus. 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As we wait for the final results of the midterm elections to determine which party will control the House, enjoy Jen's interview with C-SPAN Communications Director, Howard Mortman. Jen and Howard discuss all things C-SPAN, including what C-SPAN crews are and are not allowed to film and the network's funding sources and distribution, as well has Howard's podcast, the Weekly, and his book, When Rabbis Bless Congress. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Executive Producer Recommended Sources Background Sources Howard Mortman Jen on C-SPAN Alzheimer’s Testimony Seth Rogan's and Charity February 26, 2014. Senate Appropriations Subcommittee on Labor, Health, and Human Services. Origins of COVID-19 Katherine Eban and Jeff Kao. October 28, 2022. ProPublica. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
The Inflation Reduction Act is a new law designed to hasten the United States’ energy transition (and do nothing about inflation). In the last episode before the midterm election, learn about the energy path the Democratic Party has plotted for us and learn how this new law can possibly save you tens of thousands of dollars. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Jen Podcast Appearances The Living Numbers Podcast with Tony Rambles. A Word with Tom Merritt. Background Sources Recommended Congressional Dish Episodes Tax Credits and Refunds Home Energy Efficiency Tax Credits eFile. Rocky Mengle. Sept 16, 2022. Kiplinger. Updated Aug 18, 2022. Energy Star. Electric Appliance Rebates U.S. Census Bureau. Electric Car Tax Credit Cornell Law School Legal Information Institute. Alternative Fuels Data Center. U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy. Kelley R. Taylor. Oct 18, 2022. Kiplinger. Greg Iacurci. Oct 15, 2022. CNBC. John Bozzella. Aug 5, 2022. Alliance for Automotive Innovation. John Bogna. Jun 22, 2022. PCMag. U.S. Geological Survey. U.S. Department of the Interior. Princeton University Research & Project Administration. Alternative Fuel vehicle refueling property credit Kelley R. Taylor. Sept 14, 2022. Kiplinger. Cornell Law School Legal Information Institute. Hydrogen Catherine Clifford. Sep 8, 2022. CNBC. Emma Ochu et al. Jun 17, 2021. Columbia University School of International and Public Affairs, Center on Global Energy Policy. Open Secrets. Jay Bartlett and Alan Krupnick. December 2020. Resources for the Future. 24/7 Wall St. Feb 16, 2020. Market Watch. Health Care Oct 5, 2022. Centers for Medicare & Medicaid Services. 2022. Centers for Medicare & Medicaid Services. Carbon Capture Angela C. Jones and Ashley J. Lawson. Oct 5, 2022. Congressional Research Service. Emily Pontecorvo. Aug 22, 2022. Grist. 2021. Global CCS Institute. Nov 17, 2011. European Environment Agency. Offshore Wind Leases Abby Husselbee and Hannah Oakes. Aug 25, 2022. Harvard University Environmental & Energy Law Program. Sept 8, 2020. The White House. Fossil Fuels David Jordan. Oct 6, 2022. Roll Call. Aug 18, 2022. Enersection. Cornell Law School Legal Information Institute. The Associated Press. Apr 16, 2022. NPR. Taxes Kelley R. Taylor. Oct 10, 2022. Kiplinger. August 16, 2022. EY. Jacob Bogage. Aug 12, 2022. The Washington Post. Peter Warren. Aug 11, 2022. Empire Center. Open Secrets. November 13, 2017. Congressional Budget Office. The Law Revised August 5, 2022. Congressional Budget Office. Audio Sources September 22, 2022 Senate Committee on Energy and Natural Resources Witnesses: Tim Hemstreet, Managing Director for Renewable Energy Development, PacifiCorp Spencer Nelson, Managing Director, Research and New Initiatives, ClearPath Ted Wiley, President and Chief Operating Officer, Form Energy 19:19 Sen. Joe Manchin (D-WV): When it comes to storage, there has rightly been a focus on the supply chain, particularly for lithium ion batteries that power electric vehicles and phones in our pockets and many other modern technologies. While we have benefited from the use of this important battery chemistry, the fact that China is responsible for 75% of global lithium ion battery production, including 60% of the world's cathode production and 80% of the world's anode production, should give everyone pause. That is why I was proud to champion Inflation Reduction Act which incentivized the onshoring of the entire battery supply chain, from the production and processing of raw materials, to the battery pack assembly and everything in between. March 31, 2022 Senate Committee on Energy and Natural Resources Witnesses: Dr. Steve Fortier, Director, USGS National Minerals Information Center, U.S. Department of the Interior Scott Melbye, President, Uranium Producers of America Julie Padilla, Chief Regulatory Officer, Twin Metals Minnesota Abigail Wulf, Vice President, Critical Minerals Strategy and Director of the Center for Critical Minerals Strategy, Securing America's Future Energy Dr. Paul Ziemkiewicz, Director, West Virginia Water Research Institute, West Virginia University 24:14 Sen. Joe Manchin (D-WV): It makes no sense to remain beholden to bad actors when we have abundant resources in manufacturing know-how here in the United States. And make no mistake, we are beholden, particularly when it comes to many of the minerals that go into clean energy technologies. That is why I've sounded the alarm about going down the path of EVs alone and advocated for equal treatment for hydrogen 45:08 Abigail Wulf: As things stand, without some significant course corrections on America's critical minerals enterprise, the leading automobile power won't be the United States. It will be China. Not because of superior design or technology, but because of their massive head start and established market power, if not utter dominance, in all aspects of the supply chain that powers these [electric] vehicles. But simply mining alone does not begin to address the fundamentals of America's mineral supply chain challenge. Where we are most lacking and where China is most dominant is in that crucial but largely hidden processing phase and midstream component production. We simply can't dig up a rock and stick it in a Tesla. You have to crush it, smelt it, and refine it into precursor material that has been sold to somebody else to turn it into battery guts, namely cathodes, anodes and electrolytes. Today, the United States has less than 4% of all minerals processing capacity and makes 0% of the world's cathodes and anodes. By contrast, China is the world's largest processor of copper, nickel, cobalt, lithium and rare earth elements, and they control 60% of anode production and 40% of global cathode production. Consider that in 2019, about 70% of the world's cobalt supply was mined in the Democratic Republic of Congo, but more than 70% of that cobalt was refined in or controlled by China. February 2, 2022 Senate Committee on Energy and Natural Resources Witnesses Dr. Sunita Satyapal, Director, Hydrogen and Fuel Cell Technologies Office, Hydrogen Program Coordinator, U.S. Department of Energy Dr. Glen Richard Murrell, Executive Director, Wyoming Energy Authority Jonathan Lewis, Senior Counsel and Director of Transportation Decarbonization, Clean Air Task Force Michael J. Graff, Chairman & Chief Executive Officer, American Air Liquide Holdings, Inc. Brian Hlavinka, Vice President, New Energy Ventures, Corporate Strategic Development, Williams 21:07 Sen. Joe Manchin (D-WV): However, we have some challenges to tackle in order to build a clean hydrogen economy. Producing hydrogen without emissions is two to six times the cost of current production methods. Also, retrofitting end-use applications to use hydrogen as a feedstock, from chemical plants to cars and trucks, will take huge investments from both public and private sectors. This is the demand that we need to develop hydrogen markets that can sustain themselves. The other big challenge is the safe and efficient transport and storage of large volumes of hydrogen, given its physical properties. There's a lot of promising work being done in this space and will allow us to leverage our vast natural gas pipeline network to transport hydrogen to market. 22:00 Sen. Joe Manchin (D-WV): That is why I made research, development, and demonstration of these technologies a central part of the Energy Infrastructure Act, which this committee reported with bipartisan support last year, and which was subsequently included in the recently enacted Bipartisan Infrastructure Law. In that bill, we fund $9.5 billion in research, development and demonstration of clean hydrogen, and we tasked the Department of Energy to develop a national strategy and a roadmap to get us to a clean hydrogen economy. 27:25 Sen. James Lankford (R-OK): I'm concerned that the conversation around green versus blue hydrogen will pit technologies against each other rather than working together to establish a robust hydrogen marketplace. The simple truth right now is that 95% of hydrogen produced in the United States is made from natural gas. 1:42:00 Sen. Lisa Murkowski (R-AK): Can you share what the administration's policy is with regards to converting natural gas to hydrogen? We recognize that there are some within the [Biden] administration, certainly some groups that may have influence on the administration, who are very firm about not using fuel sources like natural gas. So the question is, is there a role for conversion to play? And what might we anticipate with regards to support and funding that might come with it? Dr. Sunita Satyapal: Thank you again for the question. And as mentioned, with hydrogen shot, we're really looking at all of the pathways. It's really about clean hydrogen. So whether it's natural gas, carbon feedstocks, nuclear renewables, you know, any pathway to get to the low carbon intensity, we're really pivoting away from the colors. There's a lot of complexity: green, blue, purple, turquoise….Pyrolysis is another approach. In fact, our loan program office just announced financing of $1 billion solid carbon, which is another value added product, no need for the CCS portion. So definitely an all-of-the-above strategy needed to meet all of our goals. July 28, 2020 Senate Committee on Energy and Natural Resources Witnesses: Steven Winberg, (Former) Assistant Secretary for Fossil Energy at the US Department of Energy Shannon Angielski, Executive Director of the Carbon Utilization Research Council Dr. Julio Friedmann, Center on Global Energy Policy, Columbia University 25:06 Dr. Julio Friedmann: Net zero means that any residual emissions must be balanced by removal, as Secretary Moniz said. It means that reduction of co2 emissions and removal of co2 emissions are complementary but distinct actions and that both are necessary. The National Academies and the IPCC find that this must be done at enormous scale exceeding the size of the global oil and gas industry today. We are not where we need to be to make this real. 48:35 Shannon Angielski: In addition, the International Energy Agency modelled the contributions of different technologies to meet that mid-century 2 degree scenario. And it shows that CCUS accounts for approximately 100 Giga tons of needed global co2 emissions reductions by 2060. To put this into perspective, this would be achieved by the operation of 1100 carbon capture systems on the equivalent of 500 megawatt coal fired units, or 3200 natural gas combined cycle units, which would need to be operating for the next 30 years. 1:59:00 Steven Winberg: The rest of the world is going to continue using fossil energy, whether it's coal or oil or natural gas. And that's why we have moved forward quickly on the coal first program, because it offers the opportunity for what I think of as 21st century coal. Right now the Chinese own the space in power generation — coal fired power generation. We have an opportunity to take technology and springboard over what the Chinese are building, which is basically 1970s vintage technology that we built, and they now have improved slightly, but they're selling it around the world, to countries that have coal under their feet, and they're going to continue using that coal. But with the coal first program, we can move into power generation, and we can move into hydrogen production, because these countries also, as they build out their transport sector, may not do it the same way that developed countries, they may move more swiftly into hydrogen. And so there's an opportunity there to take our technology using their natural resources that are under their feet, and produce zero emitting power generation and zero emitting hydrogen and perhaps even net negative hydrogen and net negative electricity and they can use that hydrogen in the transportation sector as well as the industrial sector. Cover Art Design by Only Child Imaginations Music Presented in This Episode by