WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) pressed Wells Fargo for answers after a Bloomberg News investigation revealed that the financial services company approved only 47 percent of Black homeowners’ refinancing applications in 2020 – an approval rate significantly below other lenders, who approved about 70 percent of Black homeowners’ refinancing applications.

“I am writing regarding a recent Bloomberg News investigation, which reported that Wells Fargo approved only 47 percent of Black homeowners’ refinancing applications in 2020, an approval rate significantly below other lenders, who approved about 70 percent of Black homeowners’ refinancing applications,” wrote Sen. Warner in a letter to Wells Fargo CEO and President, Charles Scharf. “I am concerned with the significant differences between Wells Fargo and other lenders and that Wells Fargo was reportedly the only major lender to approve a smaller share of Black homeowners’ refinance applications in 2020 than it did in 2010.”

He continued, “It is clear that disparities in refinance approvals are system-wide and likely reflect a historic and systematic imbalance that has driven the racial homeownership and wealth gaps, where the average Black and Hispanic or Latino household owns just 15 to 20% as much net wealth as the average white household. Wells Fargo is quoted in the article as saying that its lending decisions were ‘consistent across racial and ethnic groups’ and I understand that the imbalance may in part be an outgrowth of historic and longstanding barriers – including greater shares of applicants with lower credit scores and higher loan-to-value (LTV) ratios, which result from longstanding legal, social, and economic inequalities. However, the key question for Wells Fargo, and other lenders, is how lenders can find ways to support communities that have historically been held back from fully participating in the mainstream economy rather than continuing to perpetuate existing disparities, particularly during times of economic crisis.”

In the letter, Sen. Warner highlighted a Federal Reserve analysis that showed borrowers saved significant amounts of money by refinancing their mortgages during the pandemic by taking advantage of record low interest rates. According to this analysis, the typical refinance reduced a borrower’s monthly payments by over $250. The total amount of borrowers who refinanced are expected to see $5 billion in savings per year. However, less than 4 percent ($198 million) of those savings went to Black households, which make up over 9 percent of all homeowners.

Seeking answers on the reported disparities, Sen. Warner asked Wells Fargo to explain in detail why the racial gaps in its refinance approval rates were significantly larger than other lenders, and why its approval rate for refinances for Black homeowners fell in 2020 compared to 2010. He also pressed for answers as to whether the financial services company is considering changes to its evaluations process to ensure equitable outcomes for all homeowners.

Sen. Warner also joined a number of his colleagues in a separate letter today, urging the Department of Housing & Urban Development (HUD) and the Consumer Financial Protection Bureau (CFPB) to request a review of Wells Fargo’s mortgage loan refinance processes, following the Bloomberg News Investigation.

In Congress, Sen. Warner has been a champion for addressing the racial wealth gap by way of homeownership and entrepreneurship. He is the author of the Low-Income First Time Homebuyers (LIFT) Act – legislation to help first-time, first-generation homebuyers – predominately Americans of color – build wealth much more rapidly. In December of 2020, Sen. Warner successfully negotiated a record $12 billion investment to open the flow of emergency capital to community-based lenders in minority and low- and moderate-income communities.

A copy of Sen. Warner’s letter to Wells Fargo is available here. A copy of the joint letter to HUD and CFPB is available here.

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WASHINGTON – Today, U.S. Senator Mark R. Warner (D-Va.) joined U.S. Senators Michael Bennet (D-Colo.) and Mike Crapo (R-Idaho) and a bipartisan group of their colleagues in urging U.S. Senators Patrick Leahy (D-Vt.), Chairman of the Senate Committee on Appropriations, and Richard Shelby (R-Ala.), Vice Chairman of the Senate Committee on Appropriations, to fully fund the Payments in Lieu of Taxes (PILT) program for fiscal year (FY) 2022. PILT provides payments to counties with non-taxable federal land within their borders to offset the lost property tax revenue. 

“Without full funding for the PILT program, counties across the nation will be unable to provide essential services such as law enforcement, education, search and rescue, road maintenance and public health to their residents and millions of visitors to our public lands,” wrote Warner, Bennet, Crapo, and the senators. “Moving forward, we look forward to working with you to enact a fiscally responsible, long-term solution to fully fund PILT and eliminate the uncertainty that counties face each year. As cash strapped counties across the country work to address budget cuts exacerbated by the pandemic, full-funding and a long-term solution for PILT is essential to provide certainty that the federal government will continue to uphold its long-standing commitment to public lands counties.”

PILT funding is critical for communities in Colorado and across the country that use these funds for essential services like infrastructure maintenance and law enforcement. Across the country, PILT provides critical resources to nearly 1,900 counties across 49 states. Counties have used these payments for more than 40 years to fund law enforcement, firefighting, emergency response, and other essential county services. As communities continue to rebuild in the aftermath of the Coronavirus Disease 2019 (COVID-19) pandemic, this funding is needed now more than ever. Bennet and the senators will continue working toward a long-term solution for PILT that will provide counties and local governments sustained funding and more predictability.

In addition to Bennet and Crapo, the letter was signed by U.S. Senators Joe Manchin (D-W. Va.), James Risch (R-Idaho), Tina Smith (D-Minn.), Mitt Romney (R-Utah), Tim Kaine (D-Va.), Steve Daines (R-Mont.), Catherine Cortez Masto (D-Nev.), James Inhofe (R-Okla.), Jacky Rosen (D-Nev.), Kevin Cramer (R-N.D.), Maggie Hassan (D-N.H.), Mike Rounds (R-S.D.), John Hickenlooper (D-Colo.), Cynthia Lummis (R-Wyo.), Amy Klobuchar (D-Minn.), John Barrasso (R-Wyo.), Mark Kelly (D-Ariz.), Dan Sullivan (R-Alaska), Maria Cantwell (D-Wash.), Alex Padilla (D-Calif.), Jeanne Shaheen (D-N.H.), Tammy Baldwin (D-Wis.), Mazie Hirono (D-Hawaii), Chris Van Hollen (D-Md.), Ron Wyden (D-Ore.), Gary Peters (D-Mich.), Jon Tester (D-Mont.), Bernie Sanders (I-Vt.), Debbie Stabenow (D-Mich.), Kyrsten Sinema (D-Ariz.), Ben Ray Luján (D-N.M.), Dianne Feinstein (D-Calif.), and Martin Heinrich (D-N.M.).

The text of the letter is available HERE and below.

Dear Chairman Leahy and Vice Chairman Shelby:

As Members of Congress representing counties with federal public lands within their boundaries, we write to request that you work to ensure the Payments in Lieu of Taxes (PILT) program is fully funded in fiscal year (FY) 2022.

PILT provides critical resources to nearly 1,900 counties across 49 states to offset lost property tax revenue due to the presence of tax-exempt federal lands within their jurisdictions. It supports the many critical services that counties provide on federal public lands. Without full funding for the PILT program, counties across the nation will be unable to provide essential services such as law enforcement, education, search and rescue, road maintenance and public health to their residents and millions of visitors to our public lands.

Moving forward, we look forward to working with you to enact a fiscally responsible, long-term solution to fully fund PILT and eliminate the uncertainty that counties face each year. As cash strapped counties across the country work to address budget cuts exacerbated by the pandemic, full-funding and a long-term solution for PILT is essential to provide certainty that the federal government will continue to uphold its long-standing commitment to public lands counties.

We look forward to working with you and other Congressional leaders to resolve this pressing issue facing our communities by fully funding PILT in FY 2022 and ensuring long-term predictable funding for this important program.

Sincerely,

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Committee on Banking, Housing and Urban Affairs, released a statement today: 

“Legal experts, senior banking officials, and former Republican and Democratic regulatory officials all agree: the proposal to pull back on the Fed’s 13(3) authority would set a terrible precedent, hurt the Fed’s independence, and weaken its ability to respond quickly to future crises.”

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WASHINGTON, D.C. – The United States Senate this week approved the CFO Vision Act of 2020, S. 3287, legislation by Sen. Mark R. Warner (D-VA) and Senate Budget Committee Chairman Mike Enzi (R-WY) to strengthen federal financial management. The bipartisan bill would update the Chief Financial Officers (CFO) Act of 1990. That law established a financial management leadership structure, provided for long-range planning, and required audited financial statements. 

Homeland Security and Governmental Affairs Committee Chairman Ron Johnson (R-WI) and Ranking Member Gary Peters (D-MI), as well as Senators James Lankford (R-OK), Maggie Hassan (D-NH), Kyrsten Sinema (D-AZ), Chuck Grassley (R-IA), David Perdue (R-GA), Kelly Loeffler (R-GA) and Mike Braun (R-IN) also cosponsored the CFO Vision Act. The Data Coalition, Citizens Against Government Waste, the Project on Government Oversight, National Taxpayers Union, Truth in Accounting, R Street Institute, Taxpayers for Common Sense, Americans for Prosperity, Government Accountability Project and Grant Thornton, among others, have endorsed the legislation.  

“It’s been 30 years since the Chief Financial Officers (CFO) Act was signed into law, equipping our federal agencies with critical financial management tools. However, since its enactment three decades ago, there has been a growing need to modernize these processes to meet the challenges of today and improve government-wide financial management,” said Sen. Warner. “I’m pleased the Senate passed our bipartisan CFO Vision Act to help federal agencies improve their financial management, and ultimately boost performance through more informed strategic policy decision making. Most importantly, it will help renew Americans’ trust that their government is making smart, informed decisions about how we use taxpayer dollars.”

“This important legislation, which modernizes federal financial management, will help ensure the federal government’s financial information is complete, reliable, timely and consistent,” said Chairman Enzi.  “Most importantly, the bill will allow Congress to make informed decisions about the financing, management, and evaluation of federal agencies and programs to see what is working and what is not.  This will ultimately lead to better budgeting now and in the future. The goal is to ensure hardworking Americans that lawmakers are making critical and informed decisions about the best use of taxpayer funds.  I hope the House will quickly take up and pass this legislation, which represents good-government policy to update our existing fiscal controls.”

The bill would:

Standardize CFO responsibilities across government by helping to enhance strategic decision-making, and correct inconsistencies;

Provide deputy CFOs with sufficient authority to ensure continuity in agency financial management operations when CFO vacancies occur;

Revise government-wide and agency-level financial management planning requirements by requiring the White House Office of Management and Budget (OMB) to update the government’s financial plan every four years and provide annual status updates. Additionally, the bill would require the government-wide plan to include actions for improving financial management systems, strengthening the federal financial management workforce, and better linking performance and cost information for decision-making;

Develop a broader set of key selected financial management performance-based metrics by requiring OMB to develop a plan to determine the status and progress agencies are making towards achieving cost-effective and efficient government operations.  The bill would also require that information be included in the government-wide and agency-level financial management plans and status reports; and

Strengthen internal controls by requiring agency management to identify key financial management information needed for effective financial management and decision making. The bill would also require agencies to annually assess and report on the effectiveness of internal controls over financial reporting and other key financial management information.

# # #

WASHINGTON, D.C. – U.S. Sen. Mark R. Warner joined Sen. Gary Peters (D-MI), Ranking Member of the Homeland Security and Governmental Affairs Committee, in calling on General Services Administration (GSA) Administrator Emily Murphy to end her unprecedented delay, immediately ascertain Vice President Joe Biden as President-elect and Senator Kamala Harris as Vice President-elect, and make available the transition resources that are provided by law. This delay creates unacceptable risks to national security and Coronavirus pandemic response efforts as the United States passed more than 250,000 deaths.  

“The United States is in the midst of a pandemic that has now claimed over 250,000 lives, with the number of new cases rising daily. Our country also faces a number of ongoing threats, including physical and cyber attacks from foreign actors, violence from domestic extremists, and natural disasters such as wildfires and hurricanes,” wrote the Senators.

“The GSA Administrator’s ascertainment of a President-elect is also critical for agencies’ willingness to share information with the transition team, including classified information, as well as for the expeditious processing of security clearances for candidates for high-level national security positions. Your delay in acknowledging Vice President Biden’s status as President-elect could undermine efforts by the incoming Administration to meet the needs of the American people in a time of national emergency,” continued the Senators.

Under the Presidential Transition Act, GSA is charged with providing resources and support to the President-elect and Vice President-elect so they can be ready to govern from Day One. Administrator Murphy must complete the ascertainment process to allow the President-elect’s transition team to receive needed information from agency officials at public health and national security agencies, ensure incoming national security officials can receive background checks and access to classified information and provide federal funding and resources to support the transition process.

A smooth and efficient transition is one of the hallmarks of American democracy. With the exception of the Presidential election in 2000 and the resulting recount, ascertainment by GSA normally happens within a day after a winner is declared, including in 2008 and 2016. The bipartisan 9/11 Commission found that the shortened transition following the 2000 recount created serious vulnerabilities, including delays related to key national security appointments.

Joining Sens. Warner and Peters in sending the letter were U.S. Senators Patrick Leahy (D-VT), Tom Carper (D-DE), Jack Reed (D-RI), Chuck Schumer (D-NY), Maggie Hassan (D-NH), Jacky Rosen (D-NV), Chris Coons (D-DE), Ed Markey (D-MA), Chris Van Hollen (D-MD), Ron Wyden (D-OR), Tina Smith (D-MN), Sheldon Whitehouse (D-RI), Tom Udall (D-NM), Catherine Cortez Masto (D-NV), Richard Blumenthal (D-CT), Jeff Merkley (D-OR), Debbie Stabenow (D-MI), Amy Klobuchar (D-MN), Bernie Sanders (I-VT), Dianne Feinstein (D-CA), Mazie Hirono (D-HI), Ben Cardin (D-MD), Tim Kaine (D-VA), Jeanne Shaheen (D-NH), Bob Menendez (D-NJ), Cory Booker (D-NJ), Tammy Duckworth (D-IL), Martin Heinrich (D-NM), Tammy Baldwin (D-WI), Sherrod Brown (D-OH), Bob Casey (D-PA), Patty Murray (D-WA), Elizabeth Warren (D-MA), Michael Bennet (D-CO), Dick Durbin (D-IL), Maria Cantwell (D-WA), Jon Tester (D-MT), Kirsten Gillibrand (D-NY) and Doug Jones (D-AL).

Text of the letter is copied below and available here.

November 19, 2020

The Honorable Emily W. Murphy

Administrator

U.S. General Services Administration

1800 F St., NW

Washington, DC 20405

Dear Administrator Murphy,

We are writing to express deep concern regarding reports that the General Services Administration (GSA) has delayed providing President-elect Joe Biden and Vice President-elect Kamala Harris with the resources they need to ensure a timely and efficient presidential transition. We urge you to immediately ascertain Vice President Biden as President-elect and Senator Harris as Vice President-elect and allow the transition team to receive the resources required under the law. We also request an urgent briefing on steps GSA is taking to ensure an orderly transition.

The United States is in the midst of a pandemic that has now claimed over 250,000 lives, with the number of new cases rising daily. Our country also faces a number of ongoing threats, including physical and cyber attacks from foreign actors, violence from domestic extremists, and natural disasters such as wildfires and hurricanes.[1] The independent, bipartisan 9/11 Commission cited the shortened transition timeline for then President-elect George W. Bush as a factor in delaying key national security personnel appointments, potentially hampering the new Administration.[2] A timely transition is critical to ensure coordination between the current and incoming Administrations, provide the incoming Administration with the resources they need to immediately address these challenges, and safeguard the public health and our national security.

Under the Presidential Transition Act of 1963, as amended, GSA is charged with providing resources and support to the President-elect and Vice President-elect. Specifically, GSA must provide office space, communication services, funding for transition staff compensation, and other support. In response to a request from the Administration, Congress has appropriated $9.9 million to GSA for transition related activities.[3] The GSA Administrator’s ascertainment of a President-elect is also critical for agencies’ willingness to share information with the transition team, including classified information, as well as for the expeditious processing of security clearances for candidates for high-level national security positions. Your delay in acknowledging Vice President Biden’s status as President-elect could undermine efforts by the incoming Administration to meet the needs of the American people in a time of national emergency.

This delay is also unprecedented. In both 2008 and 2016, President-elect Barack Obama and President-elect Donald Trump, respectively, were recognized by the GSA Administrator as President-elect within a day of the general election.[4] In 2000, this decision was delayed due to an ongoing court case regarding less than 1,000 votes in a single state—a far closer election than this one. The results of this election are clear. Vice President Biden will be the next President of the United States, and Senator Harris will be the next Vice President. It is past time to recognize the will of the American people so that the work of government can continue.

The orderly transition of power from one President to another is a bedrock principle of our democracy and one of GSA’s most important duties. We urge you to fulfill your responsibilities, ascertain Vice President Biden as President-elect and Senator Harris as Vice President-elect, and provide their transition team with the resources the law requires. We also request that, no later than November 23, 2020, GSA provide a briefing to staff of the Committees on Homeland Security and Governmental Affairs, Appropriations, and Environment and Public Works regarding the presidential transition process and the support that GSA has provided to date.

Thank you for your attention to this critical matter.

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WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner, Tim Kaine, and Gary Peters, introduced legislation that would block the implementation of an October 21 Executive Order by President Trump that would make it easier for the Administration to fire non-partisan civil servants with policy expertise.

“We cannot allow the President to deny federal employees crucial workplace protections,” said Senators Warner and Kaine. “Our federal workforce has been under unprecedented attacks by this administration, and this harmful decision only benefits the President’s loyalists instead of serving the interests of the American people.”

On October 21, President Trump signed an executive order that would allow agency heads to convert certain policy-centric positions to a new classification, Schedule F, where there is greater flexibility to fire those employees. Office of Personnel Management (OPM) Acting Director Michael Rigas issued preliminary guidance on October 23 that suggests a broad interpretation of the types of positions that would be eligible for conversion. This has created concern that the Administration could fire civil servants and create uncertainty in federal agencies that are critical to protecting the nation’s national security and addressing the ongoing pandemic. OPM has still not answered basic questions regarding the development, implementation, and potential consequences of this hastily issued executive order.

The legislation is also cosponsored by Senators Ben Cardin (D-MD), Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), Sherrod Brown (D-OH), Chris Coons (D-DE), Jack Reed (D-RI), Ed Markey (D-MA), Brian Schatz (D-HI), Tammy Baldwin (D-WI), Kirsten Gillibrand (D-NY), Tammy Duckworth (D-IL), Amy Klobuchar (D-MN), Sheldon Whitehouse (D-RI), Patty Murray (D-WA), Tina Smith (D-MN), Tom Carper (D-DE), Elizabeth Warren (D-MA), Michael Bennet (D-CO), Bernie Sanders (I-VT), Bob Casey (D-PA), Bob Menendez (D-NJ), Doug Jones (D-AL), Mazie Hirono (D-HI), Dick Durbin (D-IL), Ron Wyden (D-OR), Cory Booker (D-NJ), Dianne Feinstein (D-CA), Kyrsten Simena (D-AZ), Jeff Merkley (D-OR), Jeanne Shaheen (D-NH), Jacky Rosen (D-NV), Tom Udall (D-NM), Martin Heinrich (D-NM), Jon Tester (D-MT), Maggie Hassan (D-NH), and Chris Murphy (D-CT).

Senators Warner and Kaine have been fierce advocates for Virginia’s federal employees. In February, the Senators sent a letter to President Trump urging him to reverse his decision that would negatively impact the collective bargaining rights of Department of Defense (DOD) employees. In March, the Senators also became cosponsors of the Protecting Collective Bargaining and Official Time for Federal Workers Act, a bill that would rescind four executive actions that restrict the effectiveness of unions for federal workers. During the longest government shutdown in U.S. history, the Senators took a series of actions to protect affected workers, including guaranteeing back pay for federal employees, urging back pay for contractors, introducing budget amendments to protect federal workers, and urging OPM to prevent the termination of dental and vision insurance for federal employees. 

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WASHINGTON, D.C. – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) sent a letter to General Services Administration (GSA) Administrator Emily W. Murphy calling on the GSA to begin the official post-election transition process so that the incoming Biden Administration may utilize all available resources and funding to ensure a smooth transition into the President-elect and Vice President-elect’s new official capacities. The letter follows a recent report stating that GSA Administrator Murphy is refusing to sign a letter allowing President-elect Joe Biden’s transition team to formally start its work this week. By not signing the letter, Administrator Murphy is preventing the incoming administration’s staff from utilizing office space, accessing federal computer systems, and receiving other key services critical to an orderly transition.

“The General Services Administration Administrator is authorized to provide the President-elect and the Vice President-elect with a variety of services supporting the transition into their new official capacities,” the Senators wrote. “Moreover, an orderly and peaceful transition process is critical as the country continues to grapple with the loss and far-reaching impacts brought on by the COVID-19 pandemic.”

The full text of the letter is available here and below:

Dear Administrator Murphy:

We write today to express concern regarding your decision to withhold proper ascertainment of Joe Biden and Kamala Harris as the President-elect and Vice President-elect and request your immediate action to begin the official post-election transition process so that the incoming administration may utilize all available resources and funding.

In accordance with the Presidential Transition Act of 1963 (3 U.S.C. § 102), as amended, the General Services Administration (GSA) Administrator is authorized to provide the President-elect and the Vice President-elect with a variety of services supporting the transition into their new official capacities. In addition, the GSA Administrator is responsible for ascertaining the winner of the general election to make those post-election services available to the non-incumbent President-elect and Vice President-elect and their incoming staff. As such, GSA requested a budget allocation of $9,900,000 for transition-related activities in the Fiscal Year (FY) 2021 budget request, of which $6,300,000 is for an incoming administration. Without a determination by the GSA Administrator, President-elect Biden and Vice President-elect Harris and their staff are unable to maintain official office space within federal agencies, acquire government computer systems, or receive additional administrative services and funding to support the post-election transition into their new official capacities.

In previous election years, GSA has provided ascertainment almost immediately after the general election has been independently called. Any delay or inaction by your office may lead to the first transition delay in modern history save for when the Supreme Court settled the 2000 election recount dispute between Al Gore and George W. Bush.

Moreover, an orderly and peaceful transition process is critical as the country continues to grapple with the loss and far-reaching impacts brought on by the COVID-19 pandemic. We therefore urge the Administration to immediately ascertain and begin the post-election transition process, ensuring there is no disruption of government services that impede the incoming administration from immediately executing a comprehensive strategy to address the COVID-19 pandemic on January 20, 2020.

We appreciate your full attention to this matter and look forward to your response.

Sincerely,

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WASHINGTON – Today U.S. Sen. Mark R. Warner (D-VA) joined his Senate colleagues in a letter to United States Postmaster General Louis DeJoy calling on him to immediately reverse all operational and organizational changes that have resulted in delays of critical medications to Americans.  

“The Postal Service is an essential public institution that must uphold its duty to serve every community. Your recently implemented changes pose an unacceptable threat and continue to have a devastating effect on communities that rely on consistent access to medication through the mail. We have received numerous reports from seniors about delays in receiving their prescriptions through the mail, leaving some without life-sustaining medication for days. Others have been forced to obtain emergency prescriptions from their doctors and pay out-of-pocket for medication because their original prescriptions covered by insurance never arrived,” wrote the Senators to Postmaster General Louis DeJoy.

“We call on you to immediately reverse all operational and organizational changes that have resulted in life-threatening delays of critical medications to Americans. As you noted, ‘it is imperative for the Postal Service to operate efficiently and effectively, while continuing to provide service that meets the needs of [its] customers.’ Right now, the Postal Service is failing to meet the needs of many Americans and adhere to its mission of ‘prompt, reliable, and efficient services to patrons in all areas.’ As we continue to fight this pandemic, the Postal Service is integral to keeping millions of Americans safe, especially seniors, people with chronic conditions, and people with disabilities,” continued the Senators.

In addition to Sen. Warner, the letter was led by Sens. Jacky Rosen (D-NV), Gary Peters (D-MI), Patty Murray (D-WA), Bob Casey (D-PA), Ron Wyden (D-OR), and signed by Sens. Amy Klobuchar (D-MN), Tom Carper (D-DE), Chuck Schumer (D-NY), Sherrod Brown (D-OH), Richard Blumenthal (D-CT), Tom Udall (D-NM), Elizabeth Warren (D-MA), Kirsten Gillibrand (D-NY), Patrick Leahy (D-VT), Chris Van Hollen (D-MD), Bernie Sanders (D-VT), Tammy Duckworth (D-IL), Jeanne Shaheen (D-NH),  Debbie Stabenow (D-MI), Tammy Baldwin (D-WI), Tina Smith (D-MN), Maggie Hassan (D-NH), Chris Coons (D-DE), Sheldon Whitehouse (D-RI), Cory Booker (D-NJ), Ed Markey (D-MA), Ben Cardin (D-MD), Jack Reed (D-RI), Martin Heinrich (D-NM), Mazie Hirono (D-HI), Maria Cantwell (D-WA), Dick Durbin (D-IL), Jeff Merkley (D-OR), and Kamala Harris (D-CA).

Last month, Sen. Warner fired off a letter to Postmaster General sharing concerns he’s heard directly from Virginians regarding delayed mail service following those structural and operational changes at the Postal Service. Sen. Warner also recently called on DeJoy to testify before Congress regarding service delays in Virginia. Additionally, he joined a number of Senate Democrats in raising concerns over the heightened impact of these changes to servicemembers and their families, and in pushing DeJoy and VA Secretary Robert Wilkie to correct the changes that are needlessly delaying veterans’ access to life-saving prescriptions.

In June, Sen. Warner sounded the alarm about the Administration’s efforts to undermine state work to expand mail-in voting. Following the USPS policy changes, Sen. Warner joined other Senate Democrats in an effort to urge the Postmaster General to provide answers regarding reports of recent changes to long-standing practices at USPS that would result in increased delivery times and costs for election mail, and urged him not take any further action that makes it harder and more expensive for states and election jurisdictions to mail ballots. He has since called on DeJoy to answer for service delays and urged him not to take any further action that makes it harder for states to mail ballots. In addition, Sen. Warner asked Virginia’s election registrars to ensure that all Virginians can access their right to vote.

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

Dear Mr. DeJoy:

In your three months as U.S. Postmaster General, you have made detrimental operational and structural changes to the U.S. Postal Service. After facing criticism from members of Congress, states, and the public as well as lawsuits from multiple state attorneys general you announced the reversal of some—but not all—of these policies.  Damage from your decisions has already been done as Americans continue to experience potentially life-threatening delays in the delivery of prescription medications. These delays will continue to disproportionately harm the same individuals who are most at risk during the COVID-19 crisis, including seniors, people with chronic conditions, and people with disabilities. 

While we hope that your recent policy reversals will curtail some of the harmful effects and delays we have seen, we continue to have grave concerns regarding widespread delays in the delivery of critical medications that millions of Americans rely upon every day. In the midst of the COVID-19 pandemic, it is now more important than ever for Americans to have safe and timely access to their medications from their homes. For years, Americans have entrusted the Postal Service to deliver essential goods—yet during this public health crisis, a number of Americans continue to await needed medications that are lost or delayed in the mail. 

The Postal Service is an essential public institution that must uphold its duty to serve every community. Your recently implemented changes pose an unacceptable threat and continue to have a devastating effect on communities that rely on consistent access to medication through the mail. We have received numerous reports from seniors about delays in receiving their prescriptions through the mail, leaving some without life-sustaining medication for days. Others have been forced to obtain emergency prescriptions from their doctors and pay out-of-pocket for medication because their original prescriptions covered by insurance never arrived. 

The National Association of Letter Carriers reported that the Postal Service delivers 1.2 billion prescription drug shipments each year – amounting to four million shipments every day, six days a week.  The Department of Veterans Affairs (VA) Mail Order Pharmacy provides prescriptions to approximately 80 percent of all veterans via mail, processing 470,000 prescriptions daily.  Despite these figures, “prescription medication can only be as effective as a patient’s ability to access it.” 

The Postal Service’s role in delivering medications to Americans has only grown during the COVID-19 crisis. When COVID-19 stay-at-home orders began in March, mail-order prescriptions reportedly increased by 21 percent from the year prior.  What was previously a routine visit to the pharmacy now places millions of Americans at an increased risk of exposure to COVID-19. The Centers for Disease Control and Prevention advises Americans to “limit in-person visits to the pharmacy” and, if possible, to use drive-thru windows, mail-order, or other delivery services to pick up medications.   As Postal Service delays cause Americans to worry when, if at all, they will receive their next supply of medication in the mail, patients across the country may be forced to seek their prescriptions in person at a pharmacy—increasing their risk of exposure to COVID-19 at a time when staying home is vital to their health and well-being.

We call on you to immediately reverse all operational and organizational changes that have resulted in life-threatening delays of critical medications to Americans. As you noted, “it is imperative for the Postal Service to operate efficiently and effectively, while continuing to provide service that meets the needs of [its] customers.”  Right now, the Postal Service is failing to meet the needs of many Americans and adhere to its mission of “prompt, reliable, and efficient services to patrons in all areas.”  As we continue to fight this pandemic, the Postal Service is integral to keeping millions of Americans safe, especially seniors, people with chronic conditions, and people with disabilities.

To that end, please provide the following information by September 21, 2020:

1. What considerations did you give to mail-order medications before implementing the recent operational and structural changes throughout the Postal Service?

2. What, if any, actions did you take to prevent potential delays in the delivery of mail-order medications? If you made no specific adjustments or considerations, please explain why.

3. What steps, if any, does the Postal Service intend to take to address existing delays in the delivery of mail-ordered prescriptions that have occurred as a result of the operational and structural changes you implemented? 

4. Please identify the operational and structural changes implemented during your tenure that you plan to reverse.
   1. Please explain how you decided which changes to reverse, as well as your rationale for each reversal.
   2. Do you plan to re-implement any of these changes after the November 2020 election? If so, what safeguards will you put in place to avoid significant mail delays and keep Americans safe?

5. Please identify the operational and structural changes implemented during your tenure that you chose not to reverse.
   1. Please explain your justification for each decision.
   2. Please explain the consequences these changes could have for the ability of Americans to receive their medications in a timely and consistent manner through the mail, and whether the Postal Service has adopted safeguards to address these issues.  

Thank you for your attention to this important matter. 

Sincerely,

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WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine joined Senator Gary Peters, Ranking Member of the Homeland Security and Governmental Affairs Committee, and the entire Senate Democratic caucus to demand answers from Postmaster General Louis DeJoy on significant operational changes he directed that have caused serious delays for postal customers in Virginia and across the country. In a letter, the Senators called on DeJoy to testify before Congress and provide clear, transparent answers on service delays that have caused seniors and veterans to miss their prescription medications, small businesses to lose money and customers over delayed packages, and other serious disruptions that affect communities across the country who count on the Postal Service for timely delivery.

“In the weeks since you began to implement these changes, we have seen a steep increase in constituent concerns about mail delays, including restricted mail movement, limitations on carriers’ abilities to timely deliver mail, and most concerning, risks to receipt of critical mail involving life-saving medication and ballots for the upcoming general election,” wrote the Senators. “The Postal Service is a public institution that both serves and belongs to every person in our nation. As a result, we call on you to testify before Congress about all changes you have made and plan to make as Postmaster General.  The lack of transparency so far regarding the intent, scope, and responsibility for changes at the Postal Service is unacceptable.” 

Last week, Warner and Kaine joined their colleagues in a letter to urge DeJoy to provide answers regarding reports of changes to long-standing practices at USPS that result in increased delivery times and costs for election mail, and urged him not to take any further action that makes it harder and more expensive for states and election jurisdictions to mail ballots. Sen. Warner also demanded immediate action last week to ensure that  Veterans and the VA can count on USPS for the timely delivery of essential prescription drugs. He has also previously pressed the Postmaster General regarding concerns from Virginians regarding delayed mail service.  

Text of the letter is copied below and available here.

Dear Mr. DeJoy:

We write to seek answers about changes to the U.S. Postal Service under your leadership that are adversely affecting mail delivery for Americans across the country.  We call on you to testify before Congress about these changes and their impact on every person in our nation.  

The Postal Service is an essential public institution with an obligation to serve every community in the nation.  As Postmaster General, you should not make changes that will slow down mail or compromise service for veterans, small businesses, rural communities, seniors, and millions of Americans who rely on the mail for medicines, essential goods, voting, correspondence, and for their livelihoods. 

Last week, however, you confirmed to Congress that you recently directed operational changes in post offices and processing centers. On August 7, 2020, you also announced a significant reorganization of Postal Service leadership and functions. These changes include the elimination of extra mail transportation trips, the reduction of overtime, the start of a pilot program for mail sorting and delivery policies at hundreds of post offices, and the reduction of equipment at mail processing plants.   

The Postal Service has characterized these changes as efficiency or cost-saving measures and minimized any “temporary service issues” as an “inevitable” side effect of implementing new procedures. However, in practice and in the midst of a pandemic, these actions, whether intentionally or not, are causing mail delays and appear to constitute an unacceptable threat to the Postal Service and the millions of Americans who depend on it.

In the weeks since you began to implement these changes, we have seen a steep increase in constituent concerns about mail delays, including restricted mail movement, limitations on carriers’ abilities to timely deliver mail, and most concerning, risks to receipt of critical mail involving life-saving medication and ballots for the upcoming general election.  There are also reports that post offices have significantly reduced their hours, including in West Virginia, where postal officials circulated an alarming document announcing potential post office closures before quickly withdrawing it and calling it a misunderstanding.

As Postmaster General, you have avoided answering questions about the magnitude of delays we have seen and have not yet provided any evidence that you studied or considered how your changes would affect delays and mail service before implementing these changes.  Furthermore, you have refused to engage with nearly all Members of Congress who have reached out to you or raised concerns about these issues.  Inevitably, without additional information or engagement from you or the Postal Service with stakeholders about these changes, your actions raise questions regarding your intent and whether you have adequately sought to fully understand the Postal Service’s current capabilities, personnel, and public service mission before implementing these changes.   

The Postal Service is a public institution that both serves and belongs to every person in our nation. As a result, we call on you to testify before Congress about all changes you have made and plan to make as Postmaster General.  The lack of transparency so far regarding the intent, scope, and responsibility for changes at the Postal Service is unacceptable.  We understand you have committed to being more forthcoming and transparent with Congress and the American people regarding these changes, including providing documentation of the operational changes you have made and will be making since beginning your term.  For every American who relies on the Postal Service, we call on you to fulfill that commitment without delay. 

To that end, please provide the following information by August 21, 2020:

1.               Please explain how the changes you have made to Postal Service operations since becoming Postmaster General have affected on-time mail delivery (i.e. service performance).  Please provide all nationwide, Area, and regional service performance data since June 15, 2020.

2.               Did you conduct any formal analysis before making these changes to Postal Service operations, including analysis of the potential effect on service performance?  If so, please provide the analysis.  If not, explain why not.   

3.               It appears the Postal Service did not consult meaningfully with any stakeholders, including unions, mailing industry stakeholders, or others, before implementing these operational changes.  Please explain why. 

a.     Did you discuss these operational changes, or any other potential operational changes, with Administration officials outside the Postal Service?  Please list and describe any such discussions.

4.               What analysis did you conduct over your 8 weeks as Postmaster General to determine an “organizational realignment” was necessary and that the previous structure was inadequate?  Please provide copies and descriptions of any analysis, including any discussions with employees and business stakeholders.  

a.     The reorganization reshuffles reporting relationships and Postal Service geographic Areas.  How will this affect coordination among essential functions of the Postal Service during this pandemic?  How will this affect reports of service performance and other essential performance metrics? 

5.               What, if any, plans are under consideration for further post office or facility hour reductions, suspensions, closures, or consolidations?

6.               What steps will you be taking to suspend or halt any changes adversely affecting mail delivery during this pandemic and in advance of the general election?

Thank you for your attention to this important matter. 

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WASHINGTON – U.S. Sen. Mark R. Warner joined Sen. Amy Klobuchar (D-MN), Ranking Member of the Senate Rules Committee, Gary Peters (D-MI), Ranking Member of the Homeland Security and Governmental Affairs Committee, Tom Carper (D-DE), and Senate Democratic Leader Chuck Schumer (D-NY), along with the entire Senate Democratic caucus, in a letter urging U.S. Postmaster General Louis DeJoy to provide answers regarding reports of recent changes to long-standing practices at USPS that would result in increased delivery times and costs for election mail, and urged him not take any further action that makes it harder and more expensive for states and election jurisdictions to mail ballots.  

Despite numerous reports from across the country of slow delivery, mail left sitting in facilities overnight and challenges delivering absentee ballots on time to election officials, DeJoy has refused to provide Congress with satisfactory answers on his actions he has taken and continues to assert that election officials must pay the First Class rate for election mail to be prioritized. This letter follows previous requests from the lawmakers that demanded answers from DeJoy after he refused to answer whether reported changes restricting mail delivery came at his direction. DeJoy has since confirmed changes in delayed mail came at his direction. 

“Like voting itself, the U.S. Postal Service (USPS) is vital to our democracy. Since you assumed the role of Postmaster General, there have been disturbing reports regarding changes at USPS that are causing significant delays in the delivery of mail. Under normal circumstances, delayed mail is a major problem – during a pandemic in the middle of a presidential election, it is catastrophic,” the lawmakers wrote. 

“Instead of taking steps to increase your agency’s ability to deliver for the American people, you are implementing policy changes that make matters worse, and the Postal Service is reportedly considering changes that would increase costs for states at a time when millions of Americans are relying on voting by mail to exercise their right to vote.

“We have received reports that in the last several weeks, the Postal Service sent letters to state election officials that indicate that the Postal Service will not automatically treat all election mail as First Class. If any changes are made to longstanding practices of moving election mail just months ahead of the 2020 general election, it will cause further delays to election mail that will disenfranchise voters and put significant financial pressure on election jurisdictions.”

The full text of the letter can be found HERE and below:

Dear Postmaster DeJoy:

We write to express significant concern regarding reports that you are implementing policy changes that will increase the cost for timely delivery of election mail, and to urge you not to take any action that makes it harder and more expensive for Americans to vote.  

Like voting itself, the U.S. Postal Service (USPS) is vital to our democracy. Since you assumed the role of Postmaster General, there have been disturbing reports regarding changes at USPS that are causing significant delays in the delivery of mail. Under normal circumstances, delayed mail is a major problem – during a pandemic in the middle of a presidential election, it is catastrophic. Instead of taking steps to increase your agency’s ability to deliver for the American people, you are implementing policy changes that make matters worse, and the Postal Service is reportedly considering changes that would increase costs for states at a time when millions of Americans are relying on voting by mail to exercise their right to vote.

The National Voter Registration Act of 1993 (NVRA) allows state and local officials to send materials authorized or required under the Act, such as absentee ballot applications, at USPS Nonprofit Marketing Mail prices. These prices are lower than the regular USPS Marketing Mail prices and election officials across the country rely on the lower rates to send voters important election mail in a cost-effective manner. Absentee ballots themselves are not specifically covered under the NVRA; however, many jurisdictions receive the lower rate for ballots as well because they utilize the Undeliverable As Addressed (UAA) information from returned ballots for list maintenance activities prescribed under the NVRA. The practice of mailing out ballots as Marketing Mail has been formalized to the degree that the 2020 Official Election Mail Kit (Kit 600) sent to election officials in January 2020 includes advice on how to decide whether to send ballots by First Class or Marketing Mail.

While First Class mail normally has a delivery standard of 2-5 days, and Nonprofit Marketing Mail has a delivery standard of 3-10 days, it has been the practice of USPS to treat all election mail as First Class mail regardless of the paid class of service. Reports from the USPS Office of the Inspector General (OIG) support the fact that USPS has traditionally prioritized election mail. An OIG report on the 2018 elections found that 95.6 percent of election and political mail was delivered within the 1-3 day service standard applied to First Class mail. That is extremely close to the USPS overall goal of delivering 96 percent of First Class mail within the 1-3 day service standard and clearly indicates that election mail was being processed across the country as if First Class service standards applied. In addition, the OIG also conducted interviews in which area and facility managers stated that they treat all election mail as First Class mail. 

We have received reports that in the last several weeks, the Postal Service sent letters to state election officials that indicate that the Postal Service will not automatically treat all election mail as First Class. If any changes are made to longstanding practices of moving election mail just months ahead of the 2020 general election, it will cause further delays to election mail that will disenfranchise voters and put significant financial pressure on election jurisdictions. Many state deadlines allow voters to request absentee ballot applications and absentee ballots within a few days of Election Day, so it is vital that standard delivery times remain low and pricing remain consistent with past practices to which election officials and voters are accustomed.

As you know, state laws set deadlines for voter registration, absentee ballot requests, and ballot postmarking and/or delivery. Changes to previous practices regarding election mail would upset these timelines. Furthermore, changing any policy for election mail only months before Election Day does not give election officials sufficient time to respond by changing deadlines set in law, especially since many state legislatures have adjourned.

Although some election jurisdictions may be able to send their election mail at the First Class rate, the overwhelming majority of jurisdictions simply do not have sufficient resources to do so. Election officials are coping with budgets that are severely strained by the increase in requests for absentee ballots and other costs associated with the pandemic. Despite our continued efforts, Congress has so far only provided states with $400 million in emergency funding for elections—billions short of what experts say is needed to keep voters safe this year. As election officials across the country plead with Congress to authorize additional election funding, reports suggest the Postal Service could implement changes that suddenly increase costs for Americans to safely vote. That is wrong and unacceptable.

As Postmaster General, you have a duty to our democracy to ensure the timely delivery of election mail. Millions of Americans’ right to vote depends on your ability to get the job done. We urge you not to increase costs for election officials, and to direct all Postal Service employees to continue to prioritize delivery of election mail.

We understand you have committed to being more forthcoming and transparent with Congress and the American people regarding your work as Postmaster, including the Postal Service’s plan to successfully deliver election mail during the 2020 elections. Accordingly, we ask you to publicly release this plan and provide answers to the following questions no later than August 25.

1.     Prior to 2020 it was the practice of the Postal Service to prioritize the delivery of all election mail, including voter registration materials, absentee ballot request, and ballots, to meet the equivalent of First Class delivery times no matter what class of mail was used to send it. Will the Postal Service commit to continuing this practice?

2.     Will the Postal Service commit to continuing its longstanding practice of allowing election officials to mail ballots to voters at Nonprofit Marketing Mail Rates?

3.     Has USPS headquarters staff provided any guidance, formally or informally, in writing or verbally, regarding the service standards to be applied to election mail not sent at the First Class rate? Please provide copies of any such guidance.

 4.     Please provide copies of any letters or guidance sent to state or local election officials regarding the service standards that will be applied to election mail.

Sincerely,

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WASHINGTON, D.C. – U.S. Sen. Mark R. Warner (D-Va.) joined Sen. Bob Menendez (D-N.J.), Congressman Bill Pascrell, Jr. (N.J.-09) and a number of colleagues in introducing bicameral legislation to establish an Inspector General (IG) for the Office of the United States Trade Representative (USTR) to provide independent oversight, and increase transparency and accountability at the agency which has recently come under increased scrutiny over reports and allegations of political favoritism, inconsistent policy implementation and conflicts of interest.

“Americans deserve honest and transparent trade policy,” said Sen. Menendez. “Recent reports of political favoritism, opaque decision-making, and conflicts of interest highlight just how dangerous it can be when an Administration hides public business from the American people. This bill will help ensure that trade policy is determined by our country’s economic interests – and no one else’s.”

“Sunlight remains the ultimate disinfectant, and that is especially true when it comes to our trade policy,” said Rep. Pascrell. “Our nation’s trade policies impact virtually every aspect of our economy and so Americans deserve to know that they are being formulated free of tainting influences and double-dealing. The opaqueness and outright corruption of Trump’s regime has revealed the need for a watchdog in all corners of our government. Our bill will ensure our trade policy will not be wielded for personal or political gain.”

In a June hearing, Sen. Menendez confronted USTR Robert Lighthizer over allegations that President Trump asked Chinese President Xi to make agricultural purchases to help him in the election. "Because if it's true, it shows how clear it is that the administration doesn't really have any intention of actually solving our trade problems with China,” Menendez said.

USTR’s Section 301 China tariff exclusion process has raised concerns over its lack of transparency, inconsistent decision-making, and political favoritism. Further, in June, Bloomberg reported that two USTR employees who helped negotiate USMCA may have violated federal law barring conflicts of interest when they offered their services as private-sector advisers to future clients while still on the federal payroll.

USTR is one of the only cabinet-level agencies without an IG, which means decisions that impact billions of dollars in trade are currently without the same degree of oversight as other federal agencies.

The legislation is co-sponsored by all the Democratic Finance Committee members, Sens. Ron Wyden (D-Ore.), Sherrod Brown (D-Ohio), Sheldon Whitehouse (D-R.I.), Catherine Cortez Masto (D-Nev.), Ben Cardin (D-Md.), Tom Carper (D-Del.), Bob Casey (D-Penn.), Debbie Stabenow (D-Mich.), Michael Bennet (D-Colo.), Maria Cantwell (D-Wash.), and Maggie Hassan (D-N.H.). Reps. Sanford Bishop (Ga.-02), Peter DeFazio (Ore.-04), Alcee Hastings (Fla.-20), Marcy Kaptur (Ohio-09), Jim McGovern (Mass.-02), Frank Pallone (N.J.-06), Jose Serrano (N.Y.-15) and Judy Chu (Calif.-27) are cosponsoring the companion bill in the House.

The USTR Inspector General Act of 2020 would:

• Establish a statutory IG for the United States Trade Representative under the Inspector General Act of 1978, similar to IGs for the Departments of Commerce, Defense, State, Justice, Treasury, etc. to perform independent oversight, improve transparency and accountability, and crack down on waste, fraud, and abuse;

• Require the president to appoint an individual to serve as USTR IG, subject to advice and consent of the Senate, not later than 120 days after enactment; and

• Direct the USTR IG to commence an audit of the Section 301 China tariff exclusion process within 180 days of enactment.

A copy of the bill can be found here.

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WASHINGTON, D.C. – The Senate Homeland Security and Governmental Affairs Committee today approved Senate Budget Committee Chairman Mike Enzi (R-WY) and Senator Mark R. Warner’s legislation (D-VA) to strengthen federal financial management. The bill would update the Chief Financial Officers (CFO) Act of 1990, which created a new foundation for federal financial management. The law established a financial management leadership structure, provided for long-range planning, and required audited financial statements.

The legislation, S. 3287, is cosponsored by Senators Ron Johnson (R-WI), Gary Peters (D-MI), James Lankford (R-OK), Maggie Hassan (D-NH), Kyrsten Sinema (D-AZ), Chuck Grassley (R-IA), David Perdue (R-GA), Kelly Loeffler (R-GA), and Mike Braun (R-IN). The Data Coalition, Citizens Against Government Waste, the Project on Government Oversight, National Taxpayers Union, Truth in Accounting, R Street Institute, Taxpayers for Common Sense, Americans for Prosperity, Government Accountability Project and Grant Thornton, among others, have endorsed the legislation.

“The Chief Financial Officers (CFO) Act was hugely instrumental in promoting financial management at the federal level, and laid the groundwork for a lot of the improvement we’ve seen in the 30 years since it was signed into law,” said Senator Warner.  “With today’s Committee passage of this commonsense bipartisan proposal, we are one step closer to enacting much-needed reforms to the financial oversight established in the original CFO Act. This legislation will help boost financial accountability in our government by promoting consistency across agencies, making it easier for them to carry out long-term initiatives and planning, and empowering them to make more informed and strategic policy decisions through the use of performance data. Now that this bill passed an important hurdle, we are almost to the finish line in taking action to help modernize our financial management structures, and renew Americans’ trust that their government is making smart, informed decisions about how we use taxpayer dollars.”

“The CFO Vision Act will lead to better financial and performance data and increase accountability in government programs and operations,” said Chairman Enzi.  “It will also help ensure our financial information is complete, reliable, timely and consistent and allow Congress to make informed decisions about the financing, management, and evaluation of federal agencies and programs.”

The bill would:

• Standardize CFO responsibilities across government by helping to enhance strategic decision-making, and correct inconsistencies;

• Provide deputy CFOs with sufficient authority to ensure continuity in agency financial management operations when CFO vacancies occur;

• Revise government-wide and agency-level financial management planning requirements by requiring OMB to update the government’s financial plan every four years and provide annual status updates. Additionally, the bill would require the government-wide plan to include actions for improving financial management systems, strengthening the federal financial management workforce, and better linking performance and cost information for decision-making;

• Develop a broader set of key selected financial management performance-based metrics by requiring OMB to develop a plan to determine the status and progress agencies are making towards achieving cost-effective and efficient government operations.  The bill would also require that information be included in the government-wide and agency-level financial management plans and status reports; and

• Strengthen internal controls by requiring agency management to identify key financial management information needed for effective financial management and decision making. The bill would also require agencies to annually assess and report on the effectiveness of internal control over financial reporting and other key financial management information.

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