Press Releases

WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) sent a letter to Bureau of Labor Statistics (BLS) Acting Commissioner William Wiatrowski, urging the agency to conduct further research on the contingent workforce. The letter follows last week’s release of the Contingent Worker and Alternative Work Arrangement Supplement (CWS) to the Current Population Survey (CPS). The survey, which had not been conducted since 2005, found that contingent workers play a significant role in our economy, with tens of millions of Americans – more than one in ten workers – identified as independent contractors, temps, and contract-firm workers.

“While the CWS is considered the gold standard for measuring these type of work arrangements in the American workforce, data about the size and scope of the contingent workforce had not been collected since 2005, after funding was eliminated. A lapse of 13 years between surveys is too long, given cyclical economic fluctuations in an era where new technology and changes to the nature of work have increased the range of opportunities for workers to pursue flexible arrangements. It is important to understand how these employment figures are affected by external forces, such as under periods of higher unemployment or slower economic growth. Without consistent information, policymakers and experts are in the dark about the size and needs of this population, making it harder to find common ground on solutions to help all workers achieve economic security,” wrote Sen. Warner. “I urge BLS to institute best practices and field the CWS annually, and I will continue to push for appropriate levels of funding in Congressional appropriations for the Bureau of Labor Statistics to ensure the fielding of the survey.”

For years, Sen. Warner has been urging the federal government to collect better, more complete data on the number and type of workers who are part of the contingent workforce economy. Estimates of the contingent labor force range from a few percentage points to nearly a third of the American labor force engaging in some type of independent work arrangement. 

Added Sen. Warner, “While the data provided a window into how many Americans claim contingent and alternative arrangements as their main job in a given one-week period, it also demonstrated where there are still gaps. There is no official measure of supplemental work. There is little insight into how workers assemble many different kinds of work arrangements to amass sources of income and livelihood. Without these additional data, it is difficult to help this dynamic segment of workers receive more training and resources, access a system of portable benefits they can carry from job to job, or file their taxes and claim deductions and credits. Moving forward, it is imperative that the BLS measure, in a holistic way, how contingent and alternative work arrangements are both central and supplementary to the foundation of our labor force.”

Last year, Sen. Warner introduced bipartisan legislation to test and evaluate innovative portable-benefits models for independent workers. He is also the author of bipartisan legislation aimed at increasing the availability of job training to lower- and moderate-income workers, in an effort to stay on top of the rapidly changing technology and skills requirements for today’s workforce.

The full text of today’s letter appears below. A copy of the signed letter is available here.

 

William J. Wiatrowski, Acting Commissioner

U.S. Bureau of Labor Statistics 

Postal Square Building

2 Massachusetts Avenue, 

Room #4040

NE Washington, DC 20212

 

Dear Acting Commissioner Wiatrowski,

 

I write today to commend the Bureau of Labor Statistics (BLS) for fielding, analyzing, and releasing the preliminary findings of the Contingent and Alternative Work Arrangement Supplement (CWS) to the Current Population Survey (CPS) on June 7, 2018. For the first time in over a decade, this report provided a snapshot of the contingent and alternative worker population.

 

This new report demonstrates that alternative workers not only play a significant role in our economy, but are also a consistent part of our labor force. Millions of Americans – more than one in ten workers – identify independent contracting, temp, on-call and contract-firm work as their main job. These workers are an important segment of our labor force, who may be working without access to a traditional set of employment benefits as a safety net.

 

While the CWS is considered the gold standard for measuring these type of work arrangements in the American workforce, data about the size and scope of the contingent workforce had not been collected since 2005, after funding was eliminated. A lapse of 13 years between surveys is too long, given cyclical economic fluctuations in an era where new technology and changes to the nature of work have increased the range of opportunities for workers to pursue flexible arrangements. It is important to understand how these employment figures are affected by external forces, such as under periods of higher unemployment or slower economic growth. Without consistent information, policymakers and experts are in the dark about the size and needs of this population, making it harder to find common ground on solutions to help all workers achieve economic security.

 

I urge BLS to institute best practices and field the CWS annually, and I will continue to push for appropriate levels of funding in Congressional appropriations for the Bureau of Labor Statistics to ensure the fielding of the survey.

 

While the data provided a window into how many Americans claim contingent and alternative arrangements as their main job in a given one-week period, it also demonstrated where there are still gaps. There is no official measure of supplemental work. There is little insight into how workers assemble many different kinds of work arrangements to amass sources of income and livelihood. Without these additional data, it is difficult to help this dynamic segment of workers receive more training and resources, access a system of portable benefits they can carry from job to job, or file their taxes and claim deductions and credits.

 

Moving forward, it is imperative that the BLS measure, in a holistic way, how contingent and alternative work arrangements are both central and supplementary to the foundation of our labor force. To address these issues, I urge the BLS to add questions about supplementary work and consider expanding the use of administrative data for research and program evaluation as recommended by the Commission on Evidence-Based Policymaking.

 

Survey research is difficult, methodologically rigorous work and I appreciate the efforts the BLS undertook in order to release this year’s CWS. While it would have been preferable for the BLS to release the results of all of the questions from the CWS simultaneously, I look forward to reviewing the answers to the four new questions measuring electronically-mediated employment I pushed for in September 2018. In the meantime, I will continue to work toward a strong and collaborative relationship with the Bureau to ensure adequate data collection and a thorough understanding of our economy.

 

Sincerely, 

Mark R. Warner

 

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WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine announced $55.985 million in new federal funding for communities in Hampton Roads, Richmond, and on the Eastern Shore for water infrastructure improvements. The funding is awarded through the U.S. Army Corps of Engineers’ “Work Plan,” a source of funds provided by Congress for the Corps to allocate to ongoing projects. Warner and Kaine advocated directly to Army Corps leadership on behalf of many of these projects in Virginia. 

“We fought for these key infrastructure projects because Virginia’s waterways play a critical role in the economies of coastal communities,” the Senators said. “From dredging and beach replenishment to cleaner rivers to new oyster habitats to new infrastructure for the Port of Virginia, these investments will help us protect coastal communities and the environment while growing the regional tourism and port commerce economies.” 

In response to the funding for Virginia Beach projects, Mayor Louis Jones said, “Each project will have substantial positive impacts on the City of Virginia Beach, its businesses and residents. We appreciate Senator Kaine, Senator Warner and Congressman Taylor advocating so effectively for these projects in our city.” 

Earlier this year, Warner and Kaine helped successfully include over $51 million for Virginia projects in the Army Corps civil works program as part of the recent omnibus government funding bill.  

The $55.985 million in funding will be awarded as follows:

 

Project

Location

Type of Funding

Allocation

Summary of Work

Lynnhaven River Basin

Virginia Beach, VA 

Construction 

$10 million

This funding will help restore wetlands and fish habitat, reduce nutrient and sediment pollution, provide flood control benefits, and reestablish impaired oyster and scallop populations in the Lynnhaven River and tributaries.

Norfolk Harbor and Channels - Craney Island

Portsmouth, VA 

Construction

$5 million

This funding will expand the dredge fill capacity of the Craney Island Dredged Material Management Area, which will pave the way for a future Craney Island Marine Terminal that will nearly double the capacity of the Port of Virginia.

Norfolk Harbor and Craney Island

Portsmouth, VA

Operations and Maintenance 

$5.35 million

This funding will support maintenance to reduce shoaling in Norfolk Harbor and around Craney Island, as well as perform dike maintenance and replace one of six primary spillboxes at the Craney Island Dredge Material Management Area.

Virginia Beach Hurricane Protection

Virginia Beach, VA

 

Construction

$17.6 million

This funding will support dredging and beach re-nourishment to ease impacts of previous extreme weather events.

Donor and Energy Transfer Ports

Port of Virginia 

Operations and Maintenance 

$3.96 million

This funding will be provided to a dedicated account for ports around the nation that either pay more into the Harbor Maintenance Trust Fund than they receive in benefits from it or ports that are critical to the movement of energy commodities, of which the Port of Virginia is one.

Atlantic Intracoastal Waterway North Landing Bridge

Chesapeake, VA 

Investigations 

$400,000

This funding will continue the study that will culminate in a plan to replace this obsolete 1955 bridge over the Albemarle and Chesapeake Canal connecting Chesapeake and Virginia Beach.

Rudee Inlet 

Virginia Beach, VA

Operations and Maintenance

$200,000

This funding supports maintenance dredging to remove shoals from the inlet.

James River Channel

James River

Operations and Maintenance

$10.7 million

This funding supports maintenance dredging to remove shoals that accumulate as much as 8 feet annually in portions of the James River. It will also fund surveys to monitor and react to changing river conditions.

Chincoteague Inlet

Chincoteague, VA

Operations and Maintenance

$250,000

This funding supports maintenance dredging to remove shoals in the inlet and surveys to monitor and report channel conditions to users, and to coordinate with the Coast Guard on buoys and channel markers.

Lynnhaven Inlet

Virginia Beach, VA

Operations and Maintenance

$325,000

This funding supports maintenance dredging to remove shoaling in the entrance channel and turning basin.

Hampton Roads Prevention of Obstructive Deposits

Hampton Roads, VA

Operations and Maintenance

$450,000

This funding will help patrol, investigate and coordinate with state and federal agencies to upgrade facilities to detect and prevent deposit of refuse and hazardous materials into navigable waterways.

Waterway on the Coast of Virginia

90-mile channel from the MD-VA line in Chincoteague Bay to the Chesapeake Bay

Operations and Maintenance

$1.75 million

This funding supports maintenance dredging to provide vessels a protected 90-mile north-south route connecting Eastern Shore harbors to one another and to the Chesapeake Bay and Atlantic Ocean.

 

 

Additional details on each type of funding are below:

 

Construction funds are granted to build current projects.

 

Investigations funds are granted to advance projects through the study phase, which will end with a document analyzing what specific infrastructure is needed for a project, how much it will cost, and what percentage the federal government will fund.

 

Operations and Maintenance funds are granted to operate and maintain federal navigation channels and other permanent Army Corps infrastructure projects.

 

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WASHINGTON - U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, has filed several amendments to the FY19 National Defense Authorization Act (NDAA) that will benefit the nation’s overall defense strategy by strengthening our cybersecurity practices and streamlining the security clearance process. 

One of Sen. Warner’s amendments would require the United States to amend the U.S. cyber-doctrine, establishing that the U.S. will respond accordingly should a foreign adversary launch a cyber-attack in order to undermine our elections. Sen. Warner also filed a similar amendment to the NDAA last year. Additional amendments would address the 700,000-person background investigation backlog and modernize an antiquated security clearance system. Suggested provisions include requiring the implementation of specific goals to reduce the backlog, and bringing transparency to the true costs associated with the clearance process. In addition, he has introduced an amendment to provide a fix for federal employees who have, following passage of the GOP’s tax bill last year, been subject to additional taxes after moving for work. 

“The sophisticated cyber effort by Russia during the 2016 presidential election made clear just how unprepared we are as a nation to address cyber threats posed by foreign adversaries. That is why I have offered an amendment that would require a direct response by the U.S. should a foreign adversary attempt to intervene and undermine the integrity of local, state, or federal elections,” said Sen. Warner. “In addition, I have also offered much-needed fixes to streamline and modernize our outdated security clearance process, and address a tax code that leaves many federal workers on the hook for costs associated with relocating for work. I look forward to working with my colleagues to ensure we provide the proper resources and support our military needs in this year’s defense budget.”

 

Text of Sen. Warner’s amendments is available here

 

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WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) introduced legislation that promotes family unity by prohibiting U.S. Department of Homeland Security (DHS) officials from separating children from their parents, except in extraordinary circumstances. Sens. Warner and Kaine also joined 38 of their Senate colleagues in a letter urging the Trump Administration to stop further traumatizing children and end Trump’s inhumane policy of separating innocent boys and girls from families who cross the southwest border seeking asylum in the United States.

The policy was put in place by the Trump Administration last month even though current immigration law does not require the U.S. government to separate immigrant parents from their children. Since Attorney General Jeff Sessions announced Trump’s so-called “zero-tolerance” policy, hundreds of children have been separated from their parents and are being held in detention centers and other institutional facilities.

“Separating children from their parents at the border, many of them coming here desperate to escape the terrible violence in their countries, is a policy that is directly at odds with the fundamental values of this nation. This unprecedented and inhumane practice has been condemned by the U.N., is not rooted in any law, and could end today should President Trump choose to do so,” said Sen. Warner. “Instead, the President has used this new policy to terrorize innocent families as a means of deterring those who are legally seeking asylum in our country. In the absence of moral leadership from the White House, Congress should make it clear that the United States of America will continue to stand proud as a country welcoming of those seeking refuge from violence, poverty, and prejudice.” 

“The Trump Administration’s policies trample on American values by tearing families apart and demonizing people seeking refuge,” Sen. Kaine said. “This bill is an effort to protect kids from unnecessary harm by keeping families together and putting in place safeguards for children who have been separated from their parents.”

The Keep Families Together Act will: 

·         Keep families together: The bill promotes family unity by prohibiting Department of Homeland Security (DHS) officials from separating children from their parents, except in extraordinary circumstances.  In these limited circumstances, separation could not occur unless parental rights have been terminated, a child welfare agency has issued a best interest determination, or the Port Director or the Chief Border Patrol agent of Customs and Border Protection (CBP) have approved separation due to trafficking indicators or other concerns of risk to the child.

·         Increase Child Welfare Training: The bill requires all CBP officers and agents to complete child welfare training on an annual basis. Port Directors and Chief Border Agents, those who authorized to make decisions on family separations, must complete an additional 90 minutes of annual child-welfare training.

·         Establish public policy preference for family reunification: The bill establishes a preference for family unity, discourages the separation of siblings, and creates a presumption that detention is not in the best interests of families and children.

·         Implement procedures for Separated Families: The bill requires DHS to develop policies and procedures allowing parents and children to locate each other and reunite if they have been separated. Such procedures must be public and made available in a language that parents can understand. In cases of separation, it requires DHS to provide parents with a weekly report containing information about a child.

·         Establish other required measures: In order to inform Congressional oversight and promote public understanding of the use family separation, the bill requires an annual report on the separation of families. Additionally, the bill requires the GAO examine the prosecution of asylum seekers.

Separately, in a letter to President Trump signed by 40 Senators, Sens. Warner and Kaine urged the Administration to stop the policy of separating children from their families at the southern border. The letter echoes the message of more than 540 state and national child development, child welfare and juvenile justice groups from all 50 states that sent a similar letter to Department of Homeland Security Secretary Kirstjen M. Nielsen. Citing the American Academy of Pediatrics, the Senators stressed the short- and long-term damage to these children from being unnecessarily separated from their families.

“We are writing to ask that you reverse course on your inhumane decision to separate children from their parents at the border,” the Senators said in a letter to Trump. “This policy has traumatized children who are fleeing extreme violence. Our government has a humanitarian duty to the children and families seeking asylum in the United States to end this policy immediately.”

The Senators underscored that the Administration’s cruel and unnecessary separations run counter to widely accepted standards of care that prioritize keeping children and families together whenever possible. 

“Best practices in child welfare promote keeping children and their parents together unless removal is in the child’s best interest,” the Senators added.“Unnecessarily separating more children from their parents will further exacerbate the lack of home-based foster care placements available and increase the use of large-capacity institutional settings, such as abandoned military bases, to house these children.”

Joining Sens. Warner and Kaine on the letter were Sens. Ron Wyden (D-OR), Patty Murray (D-WA), Dianne Feinstein (D-CA), Chris Van Hollen (D-MD), Tom Udall (D-NM), Ed Markey (D-MA), Jack Reed (D-RI), Richard Blumenthal (D-CT), Tom Carper (D-DE), Tina Smith (D-MN), Bernard Sanders (I-VT), Chris Coons (D-DE), Kirsten Gillibrand (D-NY), Angus King (I-ME), Chris Murphy (D-CT), Amy Klobuchar (D-MN), Kamala Harris (D-CA), Maggie Hassan (D-NH), Maria Cantwell (D-WA), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Robert P. Casey, Jr. (D-PA), Mazie Hirono (D-HI), Jeff Merkley (D-OR), Cory Booker (D-NJ), Sheldon Whitehouse (D-RI), Catherine Cortez Masto (D-NV), Bill Nelson (D-FL), Richard J. Durbin (D-IL), Patrick Leahy (D-VT), Chuck Schumer (D-NY), Tammy Duckworth (D-IL), Sherrod Brown (D-OH), Elizabeth Warren (D-MA), Martin Heinrich (D-NM), Ben Cardin (D-MD), Jeanne Shaheen (D-NH), and Brian Schatz (D-HI).

To read the text of the bill, click here. Read the full text of the letter here. 

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WASHINGTON –U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, today sent letters to Twitter and Google parent company Alphabet, requesting information about any data sharing agreements between the companies and Chinese vendors. The letter follows a disclosure earlier this week by Facebook that the company has partnerships with Chinese telecom companies including Huawei that allow them to access Facebook users’ non-public data. 

“Since at least October 2012, when the House Permanent Select Committee on Intelligence released its widely-publicized report, the relationship between the Chinese Communist Party and equipment makers like Huawei and ZTE has been an area of national security concern. Since then, numerous articles in the tech trade press have focused on concerns by American and allied intelligence agencies that products from Chinese device makers, such as Lenovo, have security vulnerabilities that could allow Chinese intelligence to access data stored on, or transmitted by, devices.  And the New York Times reported in 2016 that firmware found in low-end smartphone devices, such as those of Huawei and ZTE, continually transmitted local data to Chinese severs, potentially for foreign intelligence purposes,” Sen. Warner wrote to the two companies today. 

It is publicly known that Alphabet has entered into strategic partnerships with Chinese mobile device manufacturers, including Huawei and Xiaomi, as well as with Chinese technology platform Tencent. In light of Facebook’s recent revelations, Sen. Warner requested that the company provide information about those partnerships, as well as any other agreements that Alphabet may have entered into with third-party vendors based in China. A similar request was posed to Twitter. 

Sen. Warner’s letter to Alphabet CEO Larry Page is available here. His letter to Twitter CEO Jack Dorsey is available here.  

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WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) released the following statement after Virginia Governor Ralph Northam signed into law the state budget that expands Medicaid:

“After years of working on this issue that affects families across the Commonwealth, we are thrilled that hundreds of thousands of Virginians who currently lack basic health care coverage will finally have some peace of mind. Today’s historic signing shows a good faith effort by legislators to provide health insurance for Virginians who need it the most.  We are grateful for the tireless work Governor Northam and the leaders of the General Assembly have shown to ensure the stability and well-being of hardworking families. We are ready to assist the Governor and his administration as Virginia begins the process of full expansion.” 

Virginia is now one of 33 states across the country that have expanded Medicaid. Up to 400,000 low-income adults in Virginia will now be eligible for Medicaid health coverage.

 

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WASHINGTON, D.C. -- Today, U.S. Senators Mark Warner and Tim Kaine released the following statement on the President’s nomination of Judge Rossie David Alston, Jr. to serve on the Eastern District Court of Virginia. If confirmed by the Senate, Judge Alston would be the only African American judge serving in the Alexandria Division:

“We are pleased that the President has nominated Judge Alston to the vacancy and are confident his experiences on the state bench will serve him well at the federal level. He fills large shoes in replacing Judge Gerald Bruce Lee, who served with great distinction, and we hope Judge Alston can proudly carry on his legacy. We urge the Department of Justice to send background materials to the Judiciary Committee as soon as possible so our colleagues can review his record and promptly advance his nomination.” 

In December, Warner and Kaine sent a letter to President Trump, recommending Judge Alston for the vacancy.

 

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

“We are troubled to hear of the charges filed against a former member of the Committee staff. While the charges do not appear to include anything related to the mishandling of classified information, the Committee takes this matter extremely seriously. We were made aware of the investigation late last year, and have fully cooperated with the Federal Bureau of Investigation and the Department of Justice since then. Working through Senate Legal Counsel, and as noted in a Senate Resolution, the Committee has made certain official records available to the Justice Department.

“This news is disappointing, as the former staffer in question served on the Committee for more than three decades, and in the Armed Forces with distinction. However, we trust the justice system to act appropriately and ensure due process as this case unfolds. This will in no way interfere with our ongoing investigation, and the Committee remains committed to carrying out our important work on behalf of the American people.”

 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, released the following statement regarding the Commerce Department’s agreement with ZTE:

“It is the unanimous conclusion of our nation’s intelligence community that ZTE poses a significant threat to our national security. These concerns aren’t new; back in 2012, the House Permanent Select Committee on Intelligence released a report on the serious counterintelligence concerns associated with ZTE equipment. 

“It’s not only that ZTE was busted for evading sanctions on Iran and North Korea, and then lied about it; It’s that ZTE is a state-controlled telecommunications company that poses significant espionage risks, which this agreement appears to do little to address.” 

 

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) released the following statement after the Bureau of Labor Statistics (BLS) issued a report that for the first time in years provided a snapshot of the contingent and alternative worker population.

The Bureau of Labor Statistics’ Contingent Worker and Alternative Work Arrangement Supplement (CWS) to the Current Population Survey (CPS)  is considered the gold standard of measuring who is doing what in the American workforce, but data about the size and scope of the contingent workforce had not been collected since 2005 after its funding was eliminated. Since then, the federal government had struggled to keep up with an explosion in new technology and changes to the nature of work that have increased the range of opportunities for workers to pursue flexible arrangements. In the Senate, Sen. Warner led the charge in restoring funding to help collect this data and requesting the Department of Labor to relaunch the survey that culminated in this report.

 “The federal government and the general public have lacked for many years reliable data to help paint a clear picture of our contingent workforce and their future. Without this crucial information, policymakers and experts are in the dark about the size and needs of this population, making it harder to find common ground on solutions that will help them navigate our intricate labor market. For this reason, I urged the federal government to re-establish these best practices and issue this report, which will help provide us with a direct understanding of what this part of our workforce looks like.

“Today’s news show that contingent workers play a significant role in our economy, with tens of millions of Americans - more than one in ten workers - identified as independent contractors, temps, and contract-firm workers. An while the data shows that there’s been a downward shift in the number of people who rely on contingent work as their main job, we still don’t know how many of them do so in order to supplement their income. Without this crucial piece of data, it will be tough for us to make an accurate assessment of the best way to help this dynamic segment of workers receive more training and resources, access a system of portable benefits they can carry from job to job, and file their taxes and claim deductions and credits. I will continue pushing the federal government and outside experts to fill-in these gaps and provide a full picture of this part of our workforce, and expect to seek more information on the tax challenges of these workers in the near future.”    

For years, Sen. Warner has been urging the federal government to collect better, more complete data on the number and type of workers who are part of the contingent workforce economy. Estimates of the contingent labor force range from a few percentage points to nearly a third of the American labor force engaging in some type of independent work arrangement. 

Last year, Sen. Warner introduced bipartisan legislation to test and evaluate innovative portable-benefits models for independent workers. He is also the author of bipartisan legislation aimed at increasing the availability of job training to lower- and moderate-income workers, in an effort to stay on top of the rapidly changing technology and skills requirements for today’s workforce.

 

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, along with Senate Foreign Relations Committee Chairman Bob Corker (R-TN) and Sens. Heidi Heitkamp (D-ND), Pat Toomey (R-PA), Lamar Alexander (R-TN), Brian Schatz (D-HI), Ron Johnson (R-WI), Chris Van Hollen (D-MD), Mike Lee (R-UT), and Jeff Flake (R-AZ), introduced bipartisan legislation that would require the White House to seek Congressional approval before issuing tariffs designated in the interest of national security. This authority was originally granted to the President by Congress under Section 232 of the Trade Expansion Act of 1962 and is a tool that has only rarely been used to restrict foreign imports. 

President Trump has used this provision to impose steel and aluminum tariffs that target imports from some of the United States’ closest allies like Mexico, Canada, and the European Union. As a result, businesses that make products containing these materials, such as Virginia craft beer producers, expect to see increased production costs that will likely mean higher prices for Virginia consumers. In addition, some of these countries have announced they plan to impose retaliatory tariffs on key Virginia agricultural exports. This week, Mexico announced it will be placing a 20 percent tariff on pork imports, a step that will directly hurt Virginia farmers who exported roughly $68 million in pork to that country last year.  

“While I believe that we should hold China accountable for unfair trade practices and I support strong trade enforcement rules that protect American workers, the President should not be relying on an obscure provision of a trade law intended to uphold national security in order to impose tariffs on our allies. Instead, he should focus on building international coalitions to hold bad actors accountable and protect American workers,” said Sen. Warner.

“While we all agree on the need to ensure the international trade system is fair for American workers, companies and consumers, unfortunately, the administration is abusing the Section 232 authority delegated to the president by Congress,” said Sen. Corker. “Making claims regarding national security to justify what is inherently an economic question not only harms the very people we all want to help and impairs relations with our allies but also could invite our competitors to retaliate. If the president truly believes invoking Section 232 is necessary to protect the United States from a genuine threat, he should make the case to Congress and to the American people and do the hard work necessary to secure congressional approval.”

The bill requires the president to submit to Congress any proposal to adjust imports in the interest of national security under Section 232. For a 60-day period following submission, legislation to approve the proposal will qualify for expedited consideration, guaranteeing the opportunity for debate and a vote. The requirement would apply to all Section 232 actions moving forward, as well as those taken within the past two years.

Sen. Warner, along with Sen. Kaine, has previously raised concerns about how President Trump’s trade war could hurt Virginia businesses and employees, listing the set of products grown and made in Virginia that have been targeted by the Chinese for duties. Both Senators also wrote to the Administration warning that withdrawing from the North America Free Trade Agreement (NAFTA)—another significant source of agricultural exports for Virginia—would negatively impact Virginia’s agricultural industry.

A copy of the legislation can be found here.

 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), released the following statement on the passing of Gene W. Adkins, Chief of the Chickahominy Indian Eastern Division:

“I’m very sad to learn Chief Adkins of the Chickahominy Indian Eastern Division passed away this weekend. I had the privilege of working with Chief Adkins for many years to secure federal recognition for the Chickahominy, and I’m glad he lived to see his and five other tribes win that battle for justice and respect earlier this year. My heart is with Chief Adkins’ family and the Chickahominy people during this tough time.”

 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, released the following statement after Facebook confirmed the company has data-sharing partnerships with Chinese telecom companies, including Huawei:

“Concerns about Huawei aren’t new – they were widely publicized beginning in 2012, when the House Permanent Select Committee on Intelligence released a well-read report on the close relationships between the Chinese Communist Party and equipment makers like Huawei. The news that Facebook provided privileged access to Facebook’s API to Chinese device makers like Huawei and TCL raises legitimate concerns, and I look forward to learning more about how Facebook ensured that information about their users was not sent to Chinese servers.” 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) released the following statement on the annual reports to Congress from the Medicare and Social Security trustees:

“These reports share some of the hard truths I have laid out since I first came to Congress. We need to work together to strengthen Social Security and Medicare so they can still be here for future generations. But it is a sad state of affairs when my Republican colleagues seem to only be concerned about deficit spending and exercise fiscal discipline when they don’t control Congress or the White House. This became clear when they abandoned common sense and embraced fantasyland economics to pass  $2.5 trillion in unpaid tax cuts that primarily benefit the wealthy and corporations, who continue to spend their tax cuts on share buybacks instead of investing in our workforce. It is time for members of both parties to come together to address our long-term fiscal situation and find a balanced solution that assures the success of these two vital entitlement programs.”

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking Committee, released the following statement regarding the reported ZTE agreement lifting the Commerce Department ban:

 “If these reports are accurate, this is a huge mistake. ZTE poses a threat to our national security. That’s not just my opinion – it’s the unanimous conclusion of our intelligence community.”

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Washington, DC – Today, House Democratic Leader Nancy Pelosi (D-CA), U.S. Senate Democratic Leader Chuck Schumer (D-NY), House Intelligence Committee Ranking Member Adam Schiff (D-CA), and Senate Intelligence Committee Vice Chairman Mark Warner (D-VA) sent a letter to Deputy Attorney General Rod Rosenstein and FBI Director Christopher Wray requesting that the Department of Justice confirm that they have not given the President’s outside counsel, White House staff or the President access to the same classified information briefed to Congress. 

“We remain deeply troubled by President Donald Trump and his legal team’s persistent efforts to interfere with the Special Counsel’s ongoing investigation and undermine your agencies’ lawful activities,” the Members wrote in the letter. “These developments leave us concerned that, through his legal team or otherwise, the President will continue to pressure your agencies to divulge investigative information which he, his attorneys, and his congressional allies then could manipulate or even disclose publicly for the President’s benefit. That would be a terrible abuse of power.”

In the letter, Schumer, Pelosi, Warner and Schiff also request confirmation that the DOJ and FBI have no plans to convey such information to the same individuals in the future outside of appropriate judicial proceedings, and that going forward, the DOJ will not brief additional Members of Congress beyond the “Gang of 8” on these matters.

After the May 24 briefing to the “Gang of 8,” Schumer, Pelosi, Warner and Schiff released the following statement: “Nothing we heard today has changed our view that there is no evidence to support any allegation that the FBI or any intelligence agency placed a ‘spy’ in the Trump Campaign, or otherwise failed to follow appropriate procedures and protocols.”

 

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The full letter is below:

 

Dear Deputy Attorney General Rosenstein and Director Wray:

 

We remain deeply troubled by President Donald Trump and his legal team’s persistent efforts to interfere with the Special Counsel’s ongoing investigation and undermine your agencies’ lawful activities.     

 

Most recently, Rudy Giuliani, one of the President’s personal attorneys, repeated publicly that the White House and the President’s lawyers expect access to classified information of the utmost sensitivity related to the Special Counsel’s ongoing investigation. Executive agencies earlier had briefed this information to select Members of Congress in response to a publicly-announced directive from President Trump.  Giuliani also said that the President will refuse to be interviewed by the Special Counsel, unless the President’s attorneys are permitted to review related classified documents.

 

These demands, if fulfilled, would grossly violate our system of checks and balances, established procedure and fundamental norms. Although he has not been indicted, President Trump’s own conduct reportedly remains under examination by the Special Counsel. And absent an indictment, the subjects of federal investigation cannot access law enforcement or related national security information for any reason.

 

As the President’s attorney has made clear, his legal team wishes to obtain the classified information at issue, not for any legitimate purpose—but instead to frustrate and discredit publicly the work of the Department of Justice and the Federal Bureau of Investigation.  

 

These developments leave us concerned that, through his legal team or otherwise, the President will continue to pressure your agencies to divulge investigative information which he, his attorneys, and his congressional allies then could manipulate or even disclose publicly for the President’s personal or political benefit. That would be a terrible abuse of power. 

 

We thus respectfully request that the Department of Justice confirm, in writing, by no later than 5 p.m. on Monday, June 11:  

 

(1)   that the following parties have not been given access to the classified information, which executive branch agencies briefed to the “Gang of 8” on May 24, 2018:

 

·         Rudy Giuliani, Jay Sekulow, or any other attorney who represents or has represented President Trump in his personal capacity;

 

·         White House staff, including attorneys from the White House Counsel’s office;

 

·         President Donald J. Trump;

 

(2)   that DOJ and FBI have no plans to convey such information in the future to the President and his attorneys outside of an appropriate judicial proceeding; and

 

(3)   that going forward, DOJ and FBI will not brief additional Members of Congress who are not part of the “Gang of 8” on these matters.

 

Thank you for your immediate attention to our concerns, which are of the utmost urgency.  We look forward to your reply. 

 

Sincerely,

 

NANCY PELOSI

House Democratic Leader

CHUCK SCHUMER

Senate Democratic Leader

ADAM SCHIFF

Ranking Member, House Intelligence Committee 

MARK WARNER

Vice Chairman, Senate Intelligence Committee 

 

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

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

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

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

 

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

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

  1. Dismantle or remove every single one of North Korea’s nuclear, chemical, and biological weapons; 
  1. End the production and enrichment of uranium and plutonium for military purposes, and permanently dismantle North Korea’s nuclear weapons infrastructure. This includes the destruction of test sites, all nuclear weapons research and development facilities and enrichment facilities;
  1. Suspend all of North Korea’s ballistic missile tests and disable, dismantle and eliminate all of North Korea’s ballistic missiles and programs.  
  1. Commit to robust compliance inspections including a verification regime for North Korea’s nuclear and ballistic missile programs. Inspections must have complete access to all nuclear related sites and facilities with real time verification of North Korean compliance.  A separate compliance regime for its chemical and biological weapons that prevents, detects and punishes cheating on the part of North Korea is also necessary.  These compliance regimes must include “anywhere, anytime” inspections and snap-back sanctions if North Korea is not in full compliance;  
  1. Be permanent, without any sunsets.

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

The full text of the letter appears below.

 

The Honorable Donald J. Trump

President of the United States

The White House

1600 Pennsylvania Avenue, NW

Washington, DC  20500

 

Dear Mr. President: 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Sincerely,

Robert Menendez

United States Senator

 

Charles E. Schumer

United States Senator

 

Richard J. Durbin

United States Senator

 

Mark R. Warner

United States Senator

 

Dianne Feinstein

United States Senator

 

Patrick Leahy

United States Senator

 

Sherrod Brown

United States Senator                        

 

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WASHINGTON, D.C. -- Today, U.S. Senators Mark R. Warner and Tim Kaine released the following statement after several countries announced retaliatory tariffs in response to President Trump’s decision to impose tariffs on key U.S. allies: 

“President Trump’s decision to impose tariffs on some of our closest allies is threatening the livelihood of Virginia farmers. The European Union, Canada, and Mexico are now starting to retaliate by imposing steep tariffs of their own on many products produced in Virginia, like pork, apples, corn, and grapes. Over the last few months, we have met with Virginia farmers who have stressed the importance of stability. Instead, the President is starting a trade war that will make it harder for them to export their products overseas, and make food, beverages, and other everyday products more expensive here at home. When Virginians go to the store to buy beer or groceries this summer, they’ll likely pay higher prices because of Trump’s actions. We urge the President to reverse course, make it clear to our allies and trade partners that we are honest brokers, and give some peace of mind back to farmers and families in Virginia.”  

 

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

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

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

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WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) announced that James Madison University (JMU) will receive $1,199,748 in federal funding to recruit Science, Technology, Engineering and Math (STEM) students to become secondary and middle school teachers in Harrisonburg City Public Schools.

“We are pleased that this federal funding will allow James Madison University and community colleges in the region to partner with local schools to enhance STEM education,” said the Senators. “These efforts will help meet the educational needs of the local community while giving folks an opportunity to secure an in-demand, high-paying job in any of these advanced fields.”

The funds, awarded by the National Science Foundation’s (NSF) Robert Noyce Scholarship Program, will help expand recruiting efforts across all STEM fields and help JMU education graduates become outstanding STEM educators. As a result of the project, JMU, in partnership with Blue Ridge Community College and Piedmont Virginia Community College, hopes to prepare and place 32 Noyce Scholars, over the five years of the award, in Harrisonburg City Public Schools.

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

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

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

 

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WASHINGTON — U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, released the following statement regarding the Trump administration’s deal on ZTE:

“This would be a big mistake. President Trump should listen to the advice of his intelligence leaders, who have unanimously said that ZTE poses a national security threat to the United States.” 

 

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) and a group of 15 Senators sent a letter to the Office of the Comptroller of the Currency (OCC), the Chairman of the Board of Governors of the Federal Reserve System, and the Chairman of the Federal Deposit Insurance Corporation (FDIC), urging them to take steps that would strengthen access to credit for diverse communities under the Community Reinvestment Act (CRA).

The CRA was signed into law in 1977 to provide a framework to ensure that banks serve the needs of all members of their community, regardless of their race, gender, or income. By ensuring that banks provide access to credit for low- and middle-income (LMI) communities, the CRA has helped ameliorate redlining that has disadvantaged minorities and disinvestment that has harmed urban and rural communities. As a result, the CRA has expanded homeownership to more Americans, financed more small businesses, and transformed local economies.

The Senators urged the agencies to take the opportunity to strengthen the CRA by expanding its applicability to regions and institutions that are not currently covered by the CRA and avoid proposals that could undermine the long-standing effectiveness of the law.  In addition, the Senators emphasized the need to reflect the impact of digital banking in any new regulations.

“When the CRA became law in 1977, a bank’s geographic footprint and the areas surrounding it was a good proxy for the communities served by the bank.  That no longer holds true.  A bank should be examined under the CRA for how it serves LMI communities where it has a physical footprint and in areas where the bank accepts deposits and does substantial business, and it should receive CRA credit for qualifying loans and investments made in those areas,” wrote the Senators.

The Senators also advised the federal agencies to avoid proposals that could undermine the effectiveness of the CRA.  “While we generally support expansions that benefit LMI communities, we are concerned that permitting expansions for banks with ‘less than satisfactory’ ratings undermines the only formal compliance mechanism that exists under the CRA,” the Senators warned. “Furthermore, we believe that narrowing the universe of loans with respect to which a regulator evaluates a bank’s illegal or discriminatory credit practices is inconsistent with a key finding of Congress in passing the CRA: banks must demonstrate that they ‘serve the convenience and needs of the communities in which they are chartered to do business.’”

In addition to Sen. Warner, the letter was signed by Sens. Tim Kaine (D-VA), Cory Booker (D-NJ), Sherrod Brown (D-OH), Catherine Cortez Masto (D-NV), Elizabeth Warren (D-MA), Doug Jones (D-AL), Amy Klobuchar (D-MN), Bob Menendez (D-NJ), Kirsten Gillibrand (D-NY), Dianne Feinstein (D-CA), Brian Schatz (D-HI), Chris Van Hollen (D-MD), Gary Peters (D-MI), Ron Wyden (D-OR), and Debbie Stabenow (D-MI).

The full letter text is found below and here.

 

The Honorable Jerome H. Powell
Chairman 

Board of Governors of the Federal Reserve System

550 17th Street, NW

Washington, D.C. 20552                                

                        

The Honorable Joseph M. Otting

Comptroller of the Currency

400 Seventh Street SW

Washington, D.C. 20219        

 

The Honorable Martin J. Gruenberg

Chairman

Federal Deposit Insurance Corporation

20th Street and Constitution Avenue, NW

Washington, D.C. 20551

                                                                                  

Dear Chairman Powell, Comptroller Otting, and Chairman Gruenberg:

For over 40 years, the Community Reinvestment Act (CRA) has been critical in encouraging depository institutions (banks) to serve the credit needs of rural and urban low- and moderate-income (LMI) individuals, small businesses, and communities.  The CRA requires federal banking regulators to regularly assess each bank’s delivery of credit to LMI communities and consider that assessment when evaluating a bank’s application to expand.  In doing so, the CRA has helped ameliorate redlining that has disadvantaged minorities and disinvestment that has harmed urban and rural communities. 

We understand that your agencies are considering publishing an advance notice of proposed rulemaking that could suggest significant changes to the implementation of the CRA.  We hope that you take this opportunity to strengthen the CRA, broaden its applicability to more regions and institutions, and avoid proposals that could undermine the continuing effectiveness of the CRA.

A strong CRA continues to be needed.  Black homeownership rates fell by 5 percent from 2001 to 2016 even as white homeownership rates fell by only 1 percent.[1]  Meanwhile, Hispanic homeownership has declined 5 percent from its 2007 peak.[2]  Access to credit for minority-owned businesses remains challenging.  Black-owned companies apply for credit at a rate that is 10 percentage points higher than white-owned companies, and Hispanic-owned companies do so at a 7 percent higher rate.  But the approval rates for black-owned companies are 19 percentage points lower than white-owned companies and 6 percent lower for Hispanic-owned companies.  Forty percent of black-owned companies and over 20 percent of Hispanic-owned companies that did not apply for financing did not apply because they thought they would not be approved, compared to 14 percent of white-owned firms.[3]

A substantial body of evidence shows the significant positive contribution the CRA has made to LMI communities, helping all communities benefit from increased access to credit and economic growth.  One 2017 study found that the CRA increases credit activity by 9 percent and the number of “credit visible” individuals in the community by 7 percent.[4]  Another 2017 study linked the CRA to increased small business lending activity in LMI communities.[5]   Benefits have also flowed to smaller metropolitan and rural areas; a recent analysis shows that community development financing by banks headquartered in Appalachia reached $8.8 billion from 2007 to 2010.[6]  What the CRA does not do is also important: studies have demonstrated that the CRA does not increase delinquencies or foreclosures and did not contribute to the subprime crisis.[7] 

Some changes to the implementation of the CRA are long overdue.  For example, there is a need to reflect technology’s significant and continuing transformational effect on the delivery of banking services.  In a memorandum dated April 3, 2018, the Department of the Treasury (Treasury) recommends updating the definition of a bank’s CRA assessment area to better account for the range of delivery channels that banks offer.  When the CRA became law in 1977, a bank’s geographic footprint and the areas surrounding it was a good proxy for the communities served by the bank.  That no longer holds true.  A bank should be examined under the CRA for how it serves LMI communities where it has a physical footprint and in areas where the bank accepts deposits and does substantial business, and it should receive CRA credit for qualifying loans and investments made in those areas. 

A related phenomenon is that as bank branch footprints shrink due to a variety of causes—including the increased adoption of digital banking—rural areas increasingly rely on internet banking to deliver access to credit or branches far from their community.  To ensure the CRA is an effective tool against rural disinvestment, banking regulators should reassess whether scoping guidance for examiners should encourage the classification of more rural communities as full scope assessment areas instead of limited scope assessment areas.

Another area that we and Treasury agree deserves renewed consideration is the inclusion of bank affiliates’ performance under the lending test.  Under current regulations, a bank can choose whether its affiliates’ loans are included in its CRA performance assessment.  This can lead to strategic behavior by banks, who are incentivized to include affiliates’ loans when it benefits their CRA performance and exclude them when it harms CRA performance.  A bank should not have the discretion to exclude from CRA evaluation loans made by its affiliates; all loans made by a bank’s affiliates should be included in the bank’s CRA evaluation.

The digitization of banking also means that it is appropriate to re-evaluate the CRA’s service test, which assesses the number and types of investments made and services provided by a bank to LMI communities in its assessment area.  Clearly, physical branches are no longer the only way for banks to deliver access to credit.  Although technology has certainly helped expand access to credit through alternative delivery systems, studies continue to show that physical branches still provide a significant boost to access to credit to their surrounding community.  For example, a 2014 study found that, even in crowded markets, a branch closing results in 13 percent fewer small business loans, and the effect is concentrated in low-income and high-minority neighborhoods.[8]  We urge you to keep in mind that although digital banking has increased access to credit for many, branches continue to be important, particularly for LMI communities, due to the information-intensive and relationship-specific credit production in those areas compared to higher income areas.

One suggestion included in the Treasury memorandum that gives us pause is the recommendation that the other banking regulators adopt two recent Office of the Comptroller of the Currency (OCC) policies: one permits banks to open or acquire branches even if a bank has a “less than satisfactory” CRA rating, provided that the applicant demonstrate that the expansion benefits the communities it serves, and the other limits the effect illegal or discriminatory credit practices can have on a bank’s CRA rating.  While we generally support expansions that benefit LMI communities, we are concerned that permitting expansions for banks with “less than satisfactory” ratings undermines the only formal compliance mechanism that exists under the CRA: the prospect that the banking regulators will deny those banks’ expansion applications.  To put this in context, banks have received “Satisfactory” or “Outstanding” grades in 98 percent of CRA examinations since 2010.[9]  We believe that limiting exceptions to this enforcement mechanism is likely to result in more benefits to LMI communities through increased CRA compliance than would be achieved by occasionally approving applications from poor performing banks when the expansion would provide increased benefits to LMI communities.  Furthermore, we believe that narrowing the universe of loans with respect to which a regulator evaluates a bank’s illegal or discriminatory credit practices is inconsistent with a key finding of Congress in passing the CRA: banks must demonstrate that they “serve the convenience and needs of the communities in which they are chartered to do business.”[10]

The recent Treasury memorandum suggests a number of other sensible updates to CRA regulations, such as permitting banking regulators to preclear community development financings as qualifying investments and making those determinations public, and improving the objectivity and comparability of CRA exam performance metrics.  

Thank you for your attention to the CRA, one of the most important tools we have for inclusive access to credit and economic growth. 

Sincerely,

 

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[1] Laurie Goodman, Alana McCargo, & Jun Zhu, A closer look at the fifteen-year drop in black homeownership, Urban Institute (Feb. 13, 2017), https://www.urban.org/urban-wire/closer-look-fifteen-year-drop-black-homeownership.

 

[2] Richard Fry & Anna Brown, In a Recovering Market, Homeownership Rates Are Down Sharply for Blacks, Young Adults, Pew Research Center (Dec. 15 2016),http://www.pewsocialtrends.org/2016/12/15/in-a-recovering-market-homeownership-rates-are-down-sharply-for-blacks-young-adults/.

[3] Federal Reserve Bank of Cleveland & Federal Reserve Bank of Atlanta, 2016 Small Business Credit Survey, Report on Minority-Owned Firms (Nov. 2017), at 7-17, https://www.clevelandfed.org/~/media/content/community%20development/smallbusiness/2016%20sbcs/sbcs%20minority%20owned%20report.pdf?la=en

 

[4] Kristin F. Butcher & Ana Patricia Muñoz, “Using Credit Reporting Agency Data To Assess the Link Between the Community Reinvestment Act and Consumer Credit Outcomes,” 19Cityscape 2, 97-98 (2017).

 

[5] Raphael W. Bostic & Hyojung Lee, “Small Business Lending Under the Community Reinvestment Act,” 19 Cityscape 2, 81 (2017).

 

[6] Josh Silver & Archana Pradhan, National Community Reinvestment Coalition; Spencer M. Cowan, Woodstock Institute, Access to Capital and Credit in Appalachia and the Impact of the Financial Crisis and Recession on Commercial Lending and Finance in the Region (July 2013), at 138, https://www.arc.gov/assets/research_reports/AccessToCapitalAndCreditInAppalachia-July2013.pdf.

 

[7] See, e.g., Robert B. Avery & Kenneth P. Brevoort, The Subprime Crisis: Is Government Housing Policy

to Blame?, Board of Governors of the Federal Reserve System (2011), https://www.federalreserve.gov/pubs/feds/2011/201136/201136pap.pdf; Glenn Canner & Neil Bhutta, Staff Analysis of the Relationship Between the CRA and the Subprime Crisis, Board of Governors of the Federal Reserve System (Nov. 21, 2008), https://www.federalreserve.gov/images/20081203_analysis.pdf.

[8] Hoai-Luu Q. Nyugen, Do Bank Branches Still Matter? The Effect of Closings on Local Economic Outcomes (Dec. 2014), at 3, http://economics.mit.edu/files/10143

 

[9] Ben Horowitz, Fair lending laws and the CRA: Complementary tools for increasing equitable access to credit, Federal Reserve Bank of Minneapolis (Mar. 8, 2018),https://minneapolisfed.org/publications/community-dividend/fair-lending-laws-and-the-cra-complementary-tools-for-increasing-equitable-access-to-credit.

[10] 12 U.S.C. § 2901(a)(1). 

 Warner Leads Effort to Urge Banking Regulators to Strengthen Credit Access for Low-Income Communities

Washington, D.C. –U.S. Senate Democratic Leader Chuck Schumer (D-NY), House Democratic Leader Nancy Pelosi (D-CA), Vice Chairman Mark Warner (D-VA), and Ranking Member Adam Schiff (D-CA) released the following joint statement regarding their Gang of Eight briefing with the Justice Department:

“Today’s Gang of Eight briefing was conducted to ensure protection of sources and methods.

“Nothing we heard today has changed our view that there is no evidence to support any allegation that the FBI or any intelligence agency placed a ‘spy’ in the Trump Campaign, or otherwise failed to follow appropriate procedures and protocols.”