WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) expressed horror and demanded immediate and aggressive action by the Animal and Plant Health Inspection Service (APHIS) following more than 70 animal welfare violations at an Envigo breeding and research facility based in Cumberland, Virginia. In a letter to APHIS Administrator Kevin Shea, the Senators urged APHIS to immediately suspend Envigo’s Cumberland facility license, condemning “persistent and egregious” abuses that led to distress, injury, and death in dogs and puppies.

Today’s letter comes just days after the release of two new inspections from November 2021 and March 2022 that detailed how the facility performed unnecessarily painful medical procedures on dogs and puppies – including euthanasia without a sedative – in direct contradiction to the recommendation of the American Veterinary Medical Association. Medical records indicate that 196 dogs were euthanized and many were not provided any anesthetic.

“It is clear to us that Envigo has been derelict in its duty to provide for the humane care of its dogs, and is unable to abide by the basic standards set forth by the Animal Welfare Act,” wrote Sens. Warner and Kaine. “The role of the U.S. Department of Agriculture (USDA) in ensuring humane treatment of animals extends beyond routine and focused inspections. Congress has provided USDA with broad authority to apply penalties to violators of the Animal Welfare Act. To our knowledge, APHIS has not yet exercised such authority despite Envigo’s repeated failures in providing adequate care to the 5,000 dogs entrusted to its care.”

They continued, “APHIS could suspend Envigo’s license for 21 days, and upon notice and opportunity for hearing, move to revoke the facility’s license outright. Additionally, APHIS could initiate formal administrative action by the USDA Office of General Counsel to seek civil penalties. APHIS is authorized in statute to seek civil penalties of up to $10,000 per violation of the AWA, meaning that it could seek up to $730,000 in penalties from Envigo for its repeated noncompliance.  In the face of repeated, serious violations by the facility, it is our strongly-held belief that USDA must pursue aggressive enforcement actions.”

Over the course of nine months, four inspections – including a July inspection, and subsequent October, November, and March inspections – revealed 73 violations of the Animal Welfare Act at the Envigo Cumberland facilities. Specifically, these inspections found that puppies and dogs were held in shelters with temperatures exceeding 85 degrees Fahrenheit for more than five hours, and that research conducted at the facility caused distress to nursing mothers and their puppies after food was intentionally withheld for 48 hours. The inspections also found that housing violations led to the injury of dozens of dogs, including 71 who were injured when a body part was pulled through the wall of the kennel by a dog in an adjacent kennel, and 50 who were injured or killed due to incompatible groupings.

In their letter, the Senators also raised concern with USDA delays in publishing the horrific findings of these inspections.

They wrote, “While APHIS inspection reports have proven an invaluable resource in uncovering the breadth and depth of mistreatment occurring at the Envigo facilities, we are concerned with delays in publishing such reports. Advocates, legislators, and the public have waited months after inspections to review inspection report findings. The July report was not publicly released until 118 days after the inspection, while the October and November inspection reports took 94 and 128 days, respectively, to be published. We appreciate the complexity of these reports and the immense care that animal care specialists take in preparing them. We also understand that Envigo made it consistent practice to appeal each report in its 21-day window from initial receipt. Even still, it strikes us as unacceptable that the public and elected officials were not privy to the horrific violations of the AWA until months after the inspections while animals suffered in the interim.”

Additionally, the Senators posed a series of questions for APHIS, requesting an answer by April 20. Among other questions, they inquired whether APHIS plans to take any enforcement actions against Envigo, and whether inspectors will return to the facility for a fifth time to monitor progress on corrective actions.  

Sen. Warner, a dog owner, has been an advocate for dogs in Virginia and throughout the country, earning a 100% on the Humane Society of the United States’ Humane Scorecard for 2021. Most recently, Sen. Warner secured the passage of new language requiring the Department of State to report on the status of dogs in the Explosive Detection Canine Program (EDCP). This program came under scrutiny in 2019 after an Inspector General (IG) report found that the Department failed to conduct proper follow-up after sending highly-trained dogs to foreign partner nations, resulting in the death of at least ten dogs from largely preventable illnesses.

Sens. Warner and Kaine have been  consistent cosponsors of the Puppy Protection Act, which would amend the Animal Welfare Act to include additional care and safety standards for dog breeders like Envigo. Under the bill, breeders would be required to house dogs in appropriately sized enclosures with solid ground and keep them on a regular diet and exercise routine. As Governor of Virginia, Kaine signed a law that imposed stricter legal penalties for dogfighting offenses.

A copy of the letter is available here and below.

Dear Administrator Shea:

We write to urge the Animal and Plant Health Inspection Service (APHIS) to pursue aggressive enforcement actions against Envigo RMS LLC and Envigo Global Services Inc.’s (hereafter, Envigo) operations in Cumberland, Virginia. Over the course of the last nine months, APHIS inspectors visited Envigo’s Cumberland facilities four times and cited the company’s licensed breeding and research facilities for 73 violations of the Animal Welfare Act (AWA), 35 of which were classified as ‘Direct’ or ‘Critical.’ APHIS has an obligation under the AWA to ensure the “humane handling, care, treatment, and transportation of animals” within its purview.  In light of persistent and egregious violations of the AWA, we believe that APHIS should immediately suspend the license of the Envigo breeding facility in Cumberland and initiate formal administrative proceedings through the USDA Office of General Counsel.

In recent months, we have been horrified to learn of the abuses at Envigo’s facilities in Virginia. Namely, the abuses have occurred at the dog breeding facility in Cumberland, though APHIS also documented violations of the AWA at the adjacent research facility operated by Envigo. Research conducted at the facility caused distress to nursing mothers and their puppies after food was intentionally withheld for 48 hours within the course of a study, which itself was the subject of several AWA violations. AWA violations at the breeding facility have been even worse. Perhaps most galling is the fact that from January – July 2021, over 300 puppy deaths were attributed to unknown causes, and the facility was found to have “not taken additional steps to determine the causes of death in order to prevent similar deaths” in the future. The July 2021 inspection report also detailed widespread issues with the maintenance of Envigo’s housing facilities that recurred in each of the subsequent three inspections. Housing violations included enclosures lacking solid walls which led to at least 71 dogs being injured when a body part was pulled through the wall of the kennel by a dog in an adjacent kennel, incompatible groupings that led to the death of at least two dogs and injured 48 others, holding puppies and adult dogs in shelters with temperatures exceeding 85 degrees Fahrenheit for more than five hours, and insufficient cleaning and sanitation procedures which led to “a large accumulation of feces, urine, standing water, insects (both dead and alive) and uneaten food” under kennel floors. The July 2021 inspection report also highlighted that current staffing levels were insufficient to provide appropriate care, a violation that recurred in subsequent inspections.

The October 25, 2021 inspection report of Envigo’s Cumberland breeding facility found 13 more violations, seven of which were categorized as ‘Direct’ or ‘Critical,’ and eleven of which were repeat violations. It was clear then that the facility was not making progress in caring for the puppies and dogs. Violations cited in this October report included failure to identify medical conditions requiring treatment and failure to handle animals carefully which led to the death of a newborn puppy in a drain after he fell through a gap in the flooring.

APHIS’ inspection reports from its November 16, 2021 inspections led to 29 more violations of the AWA, 14 of which were classified as ‘Direct’ and 17 were repeat violations. Despite the facility being more than four months past its initial inspection which documented vast noncompliance, inspectors found continued, horrific mistreatment of animals. For example, the facility was found to have ignored the appropriate authority of the attending veterinarian and performed unnecessarily painful medical procedures, including euthanasia without a sedative, in direct contradiction to the recommendation of the American Veterinary Medical Association. Inspectors reviewed medical records that showed 196 dogs were euthanized and many were not provided any anesthetic. And just three days ago, APHIS released a fourth inspection report detailing five more repeat AWA violations of the Envigo breeding facility found on March 8, 2022. It is clear to us that Envigo has been derelict in its duty to provide for the humane care of its dogs, and is unable to abide by the basic standards set forth by the Animal Welfare Act.

While APHIS inspection reports have proven an invaluable resource in uncovering the breadth and depth of mistreatment occurring at the Envigo facilities, we are concerned with delays in publishing such reports. Advocates, legislators, and the public have waited months after inspections to review inspection report findings. The July report was not publicly released until 118 days after the inspection, while the October and November inspection reports took 94 and 128 days, respectively, to be published. We appreciate the complexity of these reports and the immense care that animal care specialists take in preparing them. We also understand that Envigo made it consistent practice to appeal each report in its 21-day window from initial receipt. Even still, it strikes us as unacceptable that the public and elected officials were not privy to the horrific violations of the AWA until months after the inspections while animals suffered in the interim. In particular, it is unclear to us why APHIS’ undertakes a second 21-day hold period after a licensee’s appeal is reviewed and the report is duly modified. In an ‘Explanatory Statement’ of the recently-passed Consolidated Appropriations Act of 2022, Congress instructed APHIS to address “long and inexplicable delays in acting against blatant violations of the Animal Welfare Act.”  We share this concern and hope you will take all prudent steps to expedite the public release of AWA inspection reports moving forward.

The role of the U.S. Department of Agriculture (USDA) in ensuring humane treatment of animals extends beyond routine and focused inspections. Congress has provided USDA with broad authority to apply penalties to violators of the Animal Welfare Act. To our knowledge, APHIS has not yet exercised such authority despite Envigo’s repeated failures in providing adequate care to the 5,000 dogs entrusted to its care. APHIS could suspend Envigo’s license for 21 days, and upon notice and opportunity for hearing, move to revoke the facility’s license outright. Additionally, APHIS could initiate formal administrative action by the USDA Office of General Counsel to seek civil penalties. APHIS is authorized in statute to seek civil penalties of up to $10,000 per violation of the AWA, meaning that it could seek up to $730,000 in penalties from Envigo for its repeated noncompliance.  In the face of repeated, serious violations by the facility, it is our strongly-held belief that USDA must pursue aggressive enforcement actions.

In light of ongoing violations of the AWA at Envigo facilities in Virginia, we respectfully request that by April 20, 2022, you provide detailed responses to the following questions:

1.                  Has APHIS taken any enforcement actions against the Cumberland, Virginia Envigo facilities (breeding facility: Certificate 32-A-0774, site 005 and research facility: Certificate 23-R-0187, site 002), or does it plan to do so?
2.                  What number and type of AWA violations would typically be sufficient to warrant various types of enforcement actions, including regulatory correspondence, stipulated penalties, license suspension or revocation, confiscation of animals, and formal administrative proceedings?
3.                  Over the last three years, has APHIS cited any single facility for more than violations of the AWA in a nine-month span than Envigo has received (73 violations)?
4.                  APHIS outlines in its Animal Care Inspection Guide that “inspection reports are to be finalized… within 5 business days of the date of the inspection.” Was that the case in the inspections at Envigo’s Cumberland facilities in July, October, and November 2021? 
a.                  If so, did the appeals process account for the remainder of the delay before reports were posted or were there other causes for delay?
5.                  What is the median time between the date of an APHIS inspection and the publication of the inspection report in instances where licensed facilities appeal the inspection report?
6.                  Given that APHIS’ most recent inspection of the Envigo facility on March 8, 2022 uncovered five repeat AWA violations, will APHIS inspectors return to the facility for a fifth time to monitor progress on corrective actions?

We appreciate APHIS’ continued attention to this important issue, and look forward to a prompt response. Should you have any questions, please do not hesitate to contact our staff.

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WASHINGTON — Today, U.S. Sens. Mark R. Warner and Tim Kaine announced $65,591,635 in federal funding for Virginia to make homes more energy efficient and help lower utility costs. The funding will be awarded through the Department of Energy’s Weatherization Assistance Program (WAP), which was expanded under the bipartisan infrastructure law‘s historic federal investments in upgrading our power infrastructure and reducing carbon emissions.

Eligible organizations will be able to apply for funding from the bipartisan infrastructure law in the coming weeks. This federal funding will allow the Virginia Department of Housing and Community Development (DHCD) to partner with organizations across the Commonwealth who provide weatherization services to make homes more energy efficient. The program will save an average of $372 in annual energy savings for American families. It will also help low-income families—who spend an average of 13.9% of their income on energy costs—save money.

“Virginia continues to benefit from the bipartisan infrastructure law,” said the Senators. “We’re glad this funding will be used to make homes more energy efficient, help Virginia families save money by lowering their utility costs, and improve the health and safety of communities.”

This funding can be used for a variety of mechanical, building, electric and water, health and safety, and education measures, such as upgrading heating or cooling systems, installing energy efficient light sources, and installing insulation. 8,487 Virginia homes have been weatherized since 2010.

In addition to the $3.5 billion in funding for states across the country from the infrastructure law, the FY 2022 government funding bill included $313 million across the country for WAP. 

For information on how to apply, click here. For local providers in Virginia, click here.

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WASHINGTON – Sens. Mark Warner (D-VA) and James Lankford (R-OK), member of the Senate Finance and Energy and Natural Resources Committees, along with Sens. Angus King (I-ME) and John Cornyn (R-TX) today introduced legislation to establish a secure supply chain of critical minerals and counter China’s market dominance by leveraging the Quadrilateral Security Dialogue (Quad) partnership, which includes the US, Australia, India, and Japan.

“The ubiquity of critical minerals in our daily lives, and their importance in so many modern and emerging technologies, means that ensuring that our supply chains for these critical minerals are robust and secure is essential. China’s control of much of market for these minerals and other rare earth elements – combined with the exponential growth in demand that is expected in the coming years – is particularly alarming,” said Warner, Chairman of the Senate Select Committee on Intelligence. “I’m glad that the Biden administration recognizes this threat, and the comprehensive strategy and multilateral engagement that this bill calls for—in concert with our close Quad partners, like India—will be an important step in meeting this challenge.”

“Anyone who wants to stand up to China needs to support this bill to diminish our dependence on China’s critical and rare earth minerals by encouraging trade partnerships with our allies,” said Sen. Lankford. “Oklahomans know it’s critically important to solve our dependence on China for minerals because we use these materials every day in everything from cellphones and batteries to military gear and medical devices. I look forward to coming together with our allies, instead of begging for minerals from China.”

“So many of the technologies that will define the future depend on critical minerals that are overwhelmingly controlled by China—which severely threatens America’s economic leadership and national security in the decades ahead,” said Sen. King. “As supply chain snarls continue to prevent Americans from accessing vital goods, it is critical that we work with allies like Australia, India, and Japan to build better systems and increase collaborative efforts to compete on the global market. Investing in rare earth minerals today is a fundamental way we can prepare ourselves for a successful and secure tomorrow—which is why I am proud to cosponsor this bipartisan bill.”

“The United States has spent years cultivating and strengthening our ties with the Quad partnership countries, and working with them is a commonsense step towards eliminating China from our critical mineral supply chain,” said Sen. Cornyn. “This legislation would ensure critical minerals for everything from consumer electronics to military defenses come from our allies instead of an adversary like China.”

In light of the national security threat posed by China’s control of nearly two-thirds of the global supply of rare earth elements and many other critical minerals, This bill would direct the Administration to leverage the Quad partnership to promote shared investment and development of this critical resource. The partnership would utilize the US Development Finance Corporation to support new development projects, production technologies, and refining facilities in coordination with our Quad partners to produce a more reliable and secure supply chain of critical minerals, and direct the United States Trade Representative to reduce trade barriers for critical minerals.

A copy of the legislation is available here.

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WASHINGTON – In an effort to combat money laundering and sanctions evasion, a group of six Senate Committee Chairs including Sen. Mark Warner (D-VA), Chair of the Senate Intelligence Committee, sent a letter to the Treasury Department urging the agency to revise and reissue proposed rules from 2015 that would have imposed anti-money laundering (AML) and suspicious activity report filing requirements on investment advisers, including advisers to private equity funds and hedge funds.

Advisers to private funds have enjoyed an exemption from requirements to maintain AML programs, verify the identities of their customers, and report suspicious transactions to the U.S. government.  This exemption has made private funds a potentially attractive avenue for money launderers and sanctioned persons to hide their wealth, and the Senators urge Treasury to move as quickly as practicable to address this weakness in the AML system.

In addition to Sens. Warner and Jack Reed (D-RI), Chair of the Armed Services Committee and a leading Congressional champion for transparency and accountability for financial intuitions, the letter is signed by Sens. Sherrod Brown (D-OH), Chair of the Banking, Housing and Urban Affairs Committee; Ron Wyden (D-OR), Chair of the Finance Committee; Richard Durbin (D?IL), Chair of the Judiciary Committee; Bob Menendez (D-NJ), Chair of the Foreign Relations Committee.

“Requiring advisers to establish AML programs, report suspicious activity, and file currency transaction reports, among other requirements, would go a long way towards deterring [politically exposed Russians]—and other illicit actors—from using private equity funds, hedge funds, venture capital funds, credit funds, real estate funds, and other private pools of capital to enter the U.S. financial system.  Following Russia’s unprovoked invasion of Ukraine, the United States has worked with its allies and partners to find the assets of sanctioned Russian oligarchs. However, loopholes and vulnerabilities in our financial reporting laws have made it increasingly challenging for federal investigators to identify where oligarchs and other criminal actors are placing their assets.  Holding investment advisers to the same AML standards applicable to other financial institutions would help achieve this important national security objective,” the Senators wrote.

Full text of the letter is available here and below.  

We write to urge the Financial Crimes Enforcement Network (FinCEN) to revise and reissue, as necessary, proposed rules from 2015 on anti-money laundering (AML) and suspicious activity report filing requirements for investment advisers. In doing so, we urge FinCEN to use its discretionary authority to include investment advisers in the definition of “financial institution” in the Bank Secrecy Act (BSA), which would require them to file currency transaction reports and keep certain records related to the transmittal of funds. Finally, we urge FinCEN to work with the Securities and Exchange Commission (SEC) to ensure adequate examination of the industry for AML purposes.

Investment advisers are exempt from requirements to maintain AML programs, verify the identities of their customers, and report suspicious transactions to FinCEN. Other financial institutions like banks, broker-dealers, mutual funds, futures commission merchants, introducing brokers in commodities, and insurance companies, among others, have been subject to these requirements for decades. According to the SEC’s Investment Adviser Information Reports, during just the last ten years, assets under management attributed to registered investment advisers has ballooned from approximately $44 trillion to approximately $113 trillion, raising fresh questions of whether FinCEN should eliminate these special exemptions.

The private funds segment of the asset management industry may be particularly attractive for money launderers and sanctioned persons due to existing regulatory gaps. In an Intelligence Bulletin from May 2020, the FBI indicated with high confidence that “threat actors likely use private placement of funds, including investments offered by hedge funds and private equity firms, to launder money, circumventing traditional AML programs.” Press reports have confirmed the FBI’s assessment. According to an article in Buzzfeed, a prominent Russian oligarch has used opaque corporate structures to invest at least $1.3 billion with private funds managed by U.S. investment advisers. And according to the New York Times, this very same oligarch made up to 100 investments in hedge funds and private equity funds managed by the nation’s largest asset managers, which allegedly did not confirm the source of these funds.

While the largest advisers to private funds may voluntarily implement AML programs, those advisers are not subject to regular examinations to test the adequacy of their programs. No government agency currently holds advisers accountable for adhering to their voluntary AML and sanctions compliance commitments. By contrast, banks, broker-dealers, and insurance companies are subject to periodic examinations to spot violations of the BSA and any compliance weaknesses.

Last month, FinCEN issued an alert warning financial institutions to be vigilant against attempts by politically exposed Russians to launder money, evade sanctions, and hide their assets. Requiring advisers to establish AML programs, report suspicious activity, and file currency transaction reports, among other requirements, would go a long way towards deterring these individuals—and other illicit actors—from using private equity funds, hedge funds, venture capital funds, credit funds, real estate funds, and other private pools of capital to enter the U.S. financial system. Following Russia’s unprovoked invasion of Ukraine, the United States has worked with its allies and partners to find the assets of sanctioned Russian oligarchs. However, loopholes and vulnerabilities in our financial reporting laws have made it increasingly challenging for federal investigators to identify where oligarchs and other criminal actors are placing their assets. Holding investment advisers to the same AML standards applicable to other financial institutions would help achieve this important national security objective.

In August 2015, FinCEN proposed rules to do just that. The proposal would have closed existing regulatory gaps by requiring investment advisers to implement and maintain AML programs. In the preamble to the proposal, FinCEN noted that “[a]s long as investment advisers are not subject to AML program and suspicious activity reporting requirements, money launderers may see them as a low-risk way to enter the U.S. financial system.” The recent FBI assessment, press reports of potential sanctions evasion by Russian oligarchs, and FinCEN’s own alerts to financial institutions demonstrate that these concerns may have become more acute in the years since FinCEN proposed these rules. We are pleased that the Administration shares these concerns as described in the United States Strategy on Countering Corruption in December 2021, which commits Treasury to re-examining the proposed rules from 2015. President Biden has rightly proposed additional funding for FinCEN to address the growing regulatory and enforcement demands on the agency, and we look forward to working with our colleagues to provide expanded resources in the fight against financial crime.

Investment advisers have an important role to play in safeguarding the U.S. financial system from crime. They can be valuable partners for FinCEN as it seeks to meet our enormous challenges to combat not only money laundering, but also fraud and other financial crimes. Such a partnership is also important to ensure the effectiveness of U.S. sanctions programs, which have expanded significantly during the pendency of FinCEN’s rulemaking. Accordingly, it is critical that rigorous AML and sanctions compliance standards be extended to investment advisers.

For these reasons, we respectfully request that you move as quickly as practicable to address this weakness in the AML system. We appreciate FinCEN’s efforts this year on a variety of fronts and amid competing priorities, including drafting and publishing several new rules to implement the Anti-Money Laundering Act and Corporate Transparency Act of 2021. Thank you for your attention to this critical matter, and we look forward to your reply.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) released the following statement applauding the Senate for taking an important procedural step to pass an American competitiveness package known as the United States Innovation and Competition Act or America COMPETES Act:

“For too long, the United States has allowed our global competitors to out invest us in regard to our innovation economy. This competitiveness bill makes major investments in domestic semiconductor manufacturing, creates good-paying jobs, and provides the tools our country needs to continue competing in the global economy. I am glad the Senate has voted to pass the amended version of this legislation, and I am hopeful that the Senate and House will conference quickly so that we can finally send this legislation to the President’s desk.”

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WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine introduced the Shenandoah Mountain Act, legislation to establish a 92,000-acre Shenandoah Mountain National Scenic Area (SMNSA) in Rockingham, Augusta, and Highland counties. National Scenic Areas are established by Congress to protect the scenic, historic, recreational and natural resources in specific areas, while allowing compatible uses such as outdoor recreation activities.

“Virginia’s natural treasures provide free recreation opportunities for folks all around the commonwealth – all while creating jobs and supporting our local economies,” Warner said. “I’m proud to sponsor this legislation, which will help safeguard these treasures and ensure that Virginians can make the most of them for years to come.”  

“These challenging past two years have underscored that getting out into nature is critical to our health and well-being,” Kaine said. “The establishment of this National Scenic Area will help us share the gifts of Shenandoah Mountain and the George Washington National Forest with visitors from near and far, while also boosting our local economies, protecting drinking water sources, and preserving the wildlife that make this area so special.”

The SMNSA encompasses four Wilderness areas: Skidmore Fork, Little River, Ramsey’s Draft, and Lynn Hollow, which in sum include 10 peaks above 4,000 feet and 150 miles of trails to attract campers, hikers, mountain bikers, fishermen, birders, and equestrians. The legislation also establishes a 5,764 wilderness area at Beech Lick Knob, located 10 miles north of the SMNSA.

In addition to providing world class trails, the area includes headwaters for the Potomac and James Rivers and watershed that provide municipal drinking water sources for Harrisonburg, Staunton, and communities farther downstream. Cold mountain streams in the area are also a stronghold for native brook trout. Today’s legislation would permanently protect those rivers and streams from industrial development, and also help safeguard populations of at-risk species, such as the Cow Knob and Shenandoah Mountain Salamander, that are natural to the area.

In 2019, the tourism economy directly employed 5,365 people and generated $601 million in expenditures in Augusta, Rockingham, and Highland Counties, as well as Harrisonburg and Staunton. In addition to the direct benefits to tourism and other businesses, JMU scientists estimate that lands within the SMNSA proposal already generate $13.7 million per year in other local benefits, including the value of the water supply and energy savings. Designation of the SMNSA would further grow this value.

In addition to Staunton, Augusta, Rockingham, and Harrisonburg local governments, over 400 businesses and organizations have endorsed the designation. A full list of supporters is available here.  

Full text of the legislation is available here.

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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 – U.S. Sen. Mark R. Warner (D-VA), Chairman of the Senate Intelligence Committee, is renewing his push to safeguard the health and welfare of American-trained bomb-sniffing dogs tasked with fighting terrorism abroad.

In a letter to Secretary of State Antony J. Blinken, Sen. Warner today highlighted new language that requires the Department of State to report on the status of dogs in the Explosive Detection Canine Program (EDCP), which came under scrutiny in 2019 after an Inspector General (IG) report found that the Department failed to conduct proper follow-up after sending highly-trained dogs to foreign partner nations, resulting in the death of at least ten dogs from largely preventable illnesses.

“I was glad to see that the recent Consolidated Appropriations Act, which was signed into law on March 15, included language requiring the State Department to report to Congress on the status of dogs currently in, and retired from the program, as well as an update on the policies and procedures that the Department has implemented in response to the Inspector General’s recommendations,” wrote Sen. Warner.

“As you know, the Department spends millions of taxpayer dollars in order to initially train these canines, provide appropriate veterinary care, and embed mentors in partner nations, among other efforts and expenses meant to ensure the success of the program. Once abroad, these loyal canines play an invaluable role, often risking their lives in support of their security mission, working to keep important assets, their teams, and broader populations safe,” he continued. “For these reasons and more, it is morally wrong and unacceptable for any deployed dog to be subjected to mistreatment, malnutrition, improper care, or unsafe shelter. Congress and the American people deserve to know the steps that the Department has taken and is planning, to ensure that taxpayer dollars are not placing dogs in these conditions.”

The Warner-led language – signed into law as part of the government spending bill – requires the State Department to produce a report for Congress that accounts for each of the dogs in the program, including those who are now retired. The report, due to Congress within 90 days, must also provide an update on the policies and procedures that the Department has implemented in response to the Inspector General’s 2019 recommendations.

Sen. Warner, a dog owner, has been an advocate for dogs in Virginia and throughout the country. He previously raised alarm about the 2019 Inspector General (IG) report, which found that the trained dogs who died in the Kingdom of Jordan suffered from various medical problems, including largely preventable illnesses like parvovirus and heat exhaustion. Many of the dogs were trained at a State Department-contracted facility located in Winchester, Va.

The State Department’s antiterrorism assistance program provides Explosive Detection Canines (EDCs) to foreign countries to support local law enforcement in deterring and countering terrorism. The program is primarily implemented by the Bureau of Diplomatic Security’s Office of Antiterrorism Assistance, in partnership with the Bureau of Counterterrorism. Although the State Department previously relied on the Bureau of Alcohol, Tobacco, and Firearms to provide and train the bomb-sniffing dogs, in 2016, the State Department established its own canine training center, the Canine Validation Center (CVC) in Winchester, Va., which is responsible for procuring dogs, training foreign students as handlers, and conducting assessments to determine a country’s ability to care for the dogs and operate a canine program. In addition, the CVC is responsible for conducting health and welfare assessments in foreign countries.

A copy of the letter is available here and below.

Dear Secretary Blinken,

I write today regarding efforts by the Department of State to address serious concerns that Congress and the Department’s Inspector General, among others, have raised about the Explosive Detection Canine Program (EDCP).

In September 2019, the Office of the Inspector General for the U.S. Department of State (OIG) released a report, Evaluation of the Antiterrorism Assistance Explosive Detection Canine Program – Health and Welfare . As you know, the evaluation of this program resulted from allegations that the U.S. was providing insufficient oversight, resulting in the inadequate health care, mistreatment, and premature deaths of a number of dogs. Months later, in December 2019, OIG issued a subsequent report, in response to another complaint alleging that “additional canines beyond those described in the [September] evaluation had died” from preventable causes.

As part of its evaluations, OIG made a series of recommendations to the Department to address the serious concerns over the health and welfare of the dogs trained and deployed as a part of this program.

I was glad to see that the recent Consolidated Appropriations Act, which was signed into law on March 15, included language requiring the State Department to report to Congress on the status of dogs currently in, and retired from the program, as well as an update on the policies and procedures that the Department has implemented in response to the Inspector General’s recommendations.

As you know, the Department spends millions of taxpayer dollars in order to initially train these canines, provide appropriate veterinary care, and embed mentors in partner nations, among other efforts and expenses meant to ensure the success of the program. Once abroad, these loyal canines play an invaluable role, often risking their lives in support of their security mission, working to keep important assets, their teams, and broader populations safe.

For these reasons and more, it is morally wrong and unacceptable for any deployed dog to be subjected to mistreatment, malnutrition, improper care, or unsafe shelter. Congress and the American people deserve to know the steps that the Department has taken and is planning, to ensure that taxpayer dollars are not placing dogs in these conditions.

I’m glad that the Department under your leadership will be examining this issue, and I look forward to seeing the results from the report within the required 90-day period. To coincide with that report, I would ask that the Department also brief my staff on the current status of the program.

This issue remains very important to me, and I look forward to working with you as needed to continue addressing reforms to this program.

Sincerely, 

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WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) introduced legislation to formally designate the Blue Ridge Music Center’s outdoor amphitheater the “Rick Boucher Amphitheater” after former Rep. Rick Boucher.

“Congressman Boucher is a pillar of Southwest Virginia,” the Senators said. “We can think of no better way to honor his years of public service than by naming this amphitheater, which celebrates the culture and tradition of Southwest Virginia, after him.”

Former Rep. Boucher, an Abingdon native, represented Southwest Virginia’s ninth congressional district in the House of Representatives from 1983 to 2011. Rep. Boucher was an early supporter of the development of the Blue Ridge Music Center and continued to advocate for the project throughout his tenure. He also served as the Chairman of the U.S. House Energy Subcommittee on Communications, Technology and the Internet as well as Chairman of the Subcommittee on Energy and Air Quality while in Congress.

 Located in Galax, VA, the Blue Ridge Music Center is home to a visitor center, outdoor amphitheater, indoor interpretive center, and museum that highlights the historical significance of the region’s musical culture.

Full text of the legislation is available here.

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WASHINGTON – Co-chairs of Congressional Task Force on Alzheimer's Disease, Sens. Mark Warner (D-VA), Susan Collins (R-Maine), and Edward J. Markey (D-Mass.), commended the inclusion of $3.5 billion for Alzheimer’s and related dementia research funding at the National Institutes of Health (NIH) in the Fiscal Year 2022 omnibus spending bill. This funding is a $289 million increase over the previous year’s appropriations, and above the funding level that the NIH estimates–pursuant to Senator Markey’s Alzheimer’s Accountability Act– it will need to effectively treat or prevent Alzheimer’s by 2025. Currently, more than 6.25 million Americans live with Alzheimer’s disease, and by 2060, that number is expected to double.

  “I am proud to co-chair the Congressional Task Force on Alzheimer’s Disease, which has been instrumental in increasing the awareness of and advancing research in Alzheimer’s,” said Senator Warner. “In 2010 I lost my mother to Alzheimer's after her 10-year battle with the illness. I saw firsthand the challenges of this terrible disease. That is one reason why I am committed to supporting clinical and medical research into Alzheimer’s and dementia-related illnesses. Investments like this $3.5 billion are crucial to better understanding, treating and ultimately curing Alzheimer’s disease.”

“As a founder and co-chair of the Congressional Task Force on Alzheimer's Disease, I have long championed increased investments for Alzheimer’s research, which hold great promise for putting an end to this disease that has a devastating effect on millions of Americans and their families,” said Senator Collins. “We have made tremendous progress in recent years to boost funding for biomedical research, and this legislation builds on that momentum. I am encouraged by the bipartisan commitment to reaching the national goal of preventing and treating Alzheimer’s by the year 2025.”

 “Consistent and robust investment in medical and clinical research for Alzheimer’s disease puts us on the path to defeating this devastating disease,” said Senator Markey. “Since my mother passed from Alzheimer’s in 1998 and I co-founded the Congressional Task Force on Alzheimer’s disease, I have worked on a bipartisan basis alongside Alzheimer’s patients advocates, and caregivers to push for increased funding for Alzheimer’s research.  I am proud these efforts have successfully brought billions of federal research dollars to this disease. This year’s funding increase is another positive example of the work that must continue until we effectively prevent, treat, or cure Alzheimer’s disease.”

A copy of the Senators’ letter requesting the funding can be found here.

In Fiscal Year 2021, the Senators helped to secure $3.2 billion for Alzheimer’s and related dementia research at NIH.

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WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) joined Sens. Bob Menedez (D-NJ), Bill Cassidy (R-LA), Rep. Abigail Spanberger (D-VA-07) and a bipartisan, bicameral group of colleagues in a letter to Internal Revenue Service (IRS) Commissioner Charles Rettig urging the IRS to provide much needed relief as the agency struggles to address customer service and processing issues. The IRS’s lack of action is causing unnecessary confusion, as the current tax filing season is underway.

“We remain concerned that the IRS does not have a comprehensive plan to remedy the numerous problems affecting taxpayers, despite the fact that this filing season is already well underway,” the lawmakers wrote. “For example, there is continued confusion about which notices may be unilaterally suspended by the IRS, beyond the notices the IRS has already suspended, among other issues.”

In the letter, the lawmakers requested the IRS specifically address which notices are statutorily required to be issued within a specific time, and explain why there are still certain notices that have not yet been suspended.

This letter is supported by the Association of International Certified Professional Accountants (AICPA), Padgett Business Services, National Association of Enrolled Agents (NAEA), National Association of Tax Professionals (NATP), National Society of Accountants (NSA), National Conference of CPA Practitioners (NCCPAP), National Association of Black Accountants, Inc. (NABA), Latino Tax Pro, Diverse Organization of Firms Advocacy Committee , National Society of Black Certified Public Accountants (NSBCPA), Prosperity Now, and National Society of Tax Professionals (NSTP).

Sen. Warner first raised concerns over the IRS backlog in January, calling on Treasury Secretary Janet Yellen and Commissioner Rettig to quickly address reports of unprocessed tax returns for the 2020 filing season. Later that month, Sens. Warner and Kaine called on the IRS to provide relief for taxpayers amidst the backlog. Last month, Sen. Warner continued his push to reduce delays, joining colleagues in another letter to Commissioner Rettig urging for immediate action to be taken to reduce backlogs and improve customer service during the 2022 filing season. Additionally, in a February Senate Finance Committee hearing, Sen. Warner questioned IRS National Taxpayer Advocate Erin M. Collins about the IRS backlogs and about the measures being taken to address the situation.

In addition to Sens. Warner, Kaine, Menendez and Cassidy, the Senate letter was signed by Sens. John Barrasso (R-WY), Michael Bennet (D-CO), Marsha Blackburn (R-TN), Richard Blumenthal (D-CT), Cory Booker (D-NJ), John Boozman (R-AR), Mike Braun (R-IN), Richard Burr (R-NC), Shelly Moore Capito (R-WV), Ben Cardin (D-MD), Tom Carper (D-DE), Susan Collins (R-ME), Chris Coons (D-DE), Catherine Cortez Masto (D-NV), Mike Crapo (R-ID), Steve Daines (R-MT), Tammy Duckworth (D-IL), Joni Ernst (R-IA), Chuck Grassley (R-IA), Mark Kelly (D-AZ), Angus King (I-ME), Amy Klobuchar (D-MN), James Lankford (R-OK), Patrick Leahy (D-VT), Cynthia Lummis (R-WY), Joe Manchin (D-WV), Lisa Murkowski (R-AK), Chris Murphy (D-CT), Rob Portman (R-OH), Jacky Rosen (D-NV), Tim Scott (R-SC), Tina Smith (D-MN), Debbie Stabenow (D-MI), John Thune (R-SD), Pat Toomey (R-PA), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), and Todd Young (R-IN).

A copy of the Senate version of the letter is available here and below.

Dear Commissioner Rettig,

We appreciate the Internal Revenue Service (IRS)’s ongoing efforts to eliminate the unprecedented backlog at the IRS. We remain concerned that the IRS does not have a comprehensive plan to remedy the numerous problems affecting taxpayers, despite the fact that this filing season is already well underway. For example, there is continued confusion about which notices may be unilaterally suspended by the IRS, beyond the notices the IRS h as already suspended, among other issues.

Given that the IRS has not provided us with any additional information since your last correspondence dated February 8, 2022, we ask for responses to the following questions, no later than the close of business on Monday, March 14, 2022:

1. Which remaining unsuspended notices does the IRS have the authority to suspend? Please explain why the IRS has left these remaining notices unsuspended.
 
2. Is the IRS in the process of working to suspend additional notices? If so, when will that work be completed?
 

3. Which notices are statutorily required to be issued within a specific time? Would the IRS suspend these statutory notices if the IRS had the legal authority to do so?
 
4. Explain why the IRS has not suspended notice CP2000, Notice of Underreported Income? 
 
5. Notwithstanding the publication of Notice 2021-39, widespread controversy surrounding Schedules K-2 and K-3 remains, including recent additional instructions, the inability to electronically file, and lingering uncertainty surrounding many requirements. As such, is the IRS contemplating relief, such as delaying implementation to 2023?
 
6. In early February, the IRS advised Congress that it was considering a systemic process to identify pending penalty abatement requests, and likewise evaluating penalty relief options. Has the IRS determined if it can provide penalty relief for taxpayers as previously offered by the IRS for the 2020 and 2021 tax year? If not, why not?

Thank you for your continued attention to this important matter.

Sincerely,

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