Various Measures

I'm gonna leave about uh, not until the committee is over. Committee will come to order. Without objection, Okay. the chair is authorized to declare a recess at the committee at any time. Objection. Objection. One. Without objection, Objection. all members shall have five legislative days within which One more. to submit additional materials to the chair for inclusion in the record. One. One more. I recognize myself for five minutes for an opening statement. Alright. Today's agenda brings together a comprehensive set of bills to expand opportunity for American families protect consumers and hold our financial regulators to a high standard of accountability. H R seventy-thirty, the Securing Facilities for Mental Health Services Act, was introduced by the Republican whip, Tom Emmer of Minnesota. It temporarily removes an outdated restriction on the Federal Housing Administration financing for inpatient psychiatric hospitals, enabling qualified facilities to more easily secure capital they need to build, renovate or expand, while preserving sound underwriting standards and taxpayer protections. This, uh, bill will sunset in five years, allowing Congress to further examine the impact at FHA. When a family suddenly faces job loss or a medical setback or other financial hardship, knowing turn for local assistance and understanding their legal rights can make the difference between navigating a difficult moment and facing a crisis that lasts for years. " Protect the consumers" also means ensuring that the government itself follows the law, respects due process, and remains accountable. Those are the goals of H.R. ten one eighty-four, the Consumer Financial Protection Accountability and Reform Act of twenty twenty-six. introduced by the chair of our financial institution subcommittee, Andy Barr. This package establishes a durable set of guardrails to ensure that the CFPB more is more accountable and more transparent while keeping its focus on protecting consumers and promoting competition, innovation, and access to affordable financial services for Americans. Chairman Barr Barr's bill, HR sixteen fifty-three The Civil Investigative Demand Reform Act of twenty twenty five applies those exact same principles to the Bureau's investigative process by ensuring that a civil investigative demand uh has a factual basis, a reasonable scope, and a meaningful opportunity for review. We will also consider measure aimed at protecting Americans from financial fraud and improving the information consumers receive when they're trying to make important financial decisions. H. R. forty-nine thirty-six, the TRAPS Act, introduced by Congressman Zach Nunn of Iowa, creates a coordinated federal and private sector effort to understand and counter financial fraud and scams. Congressman Nunn's Clear Forms Act would improve the information that Americans receive when they're considering an annuity, an or life insurance product, designed for their retirement. The bill reduces unnecessary disclosure, complexity, and compliance burdens. Another important measure before us is HR seventy-eight sixty-six, the American Lending Fairness Act of twenty twenty-six, introduced by Warren Davidson of Ohio, who chairs our subcommittee on national security. This bill supports our dual banking system and preserves the charter choice by restoring a level playing field state chartered banks and credit unions, allowing them to offer loans nationwide under the interest rate rules of their home state. We will also bring uh for consideration today H R eighty-nine fifty-seven, the American Reserve Modernization Act of twenty twenty-six, introduced by Congressman Begich from Alaska. This bill establishes a strategic Bitcoin reserve and a sep separate digital asset stockpile within the Department of Treasury for federally held Bitcoin and other digital assets that the government has acquired through uh justice and law enforcement efforts of criminal or civil forfeiture. This is a common sense measure that brings digital assets held across a variety of federal agencies under the careful custody of the US Treasury, consistent with oversight, strengthening of the security, transparency and accountability of these now government-held assets. Lastly, we'll consider H. R. fifty-eight, eighty-nine, the eviction helpline act introduced by Congresswoman Pressley and Ranking Member Waters legislation to increase the mandatory contribution of federal home loan banks to their affordable housing programs. Many of these bills reflect practical common sense approach to expanding opportunity protecting consumers preserving choice and competition, and demanding greater accountability. I look forward to the debate today. I thank members for their engagement on both sides of the aisle, and I now recognize the ranking member for five minutes for her opening statement for today's mark-up.

Uh, thank you very much, Chairman Hill. This summer, Democrats and Republicans on this committee delivered the most significant bipartisan housing law in decades. But our work is far from finished. Families are taking out loans to buy groceries, skipping meals, and relying on credit cards just to afford basic necessities. Housing costs are eating up most of their paychecks, and too many families are a paycheck away from eviction. Committed Democrats are responding uh to that crisis today. We're voting to put more money into affordable housing, establish a national eviction helpline, uh to help families stay in their homes and expand financing for critical mental health facilities building more housing is essential but we also have to prevent people from losing the housing they already have. Unfortunately, republicans are also using this mark-up to

Yeah.

continue their assault on America's consumers. Today, republicans are advancing sweeping legislation that would try to legitimatize the illegal actions by Trump to shut down the Consumer Protection Financial Pro- Financial Protection Bureau. Their bill would weaken the CFPB's authority to stop abusive practices by payday lenders, debt collectors, and other bad actors. The bill would codify efforts by Trump to undermine the CFPB's consumer uh complaint database, making it harder for consumers to get help when they need it the most. The bill limits penalties for companies that break the law, weaken its oversight of a growing number of Wall Street firms, and makes it harder for consumers to get their money after they have been ripped off. Even though the CFPB delivered more than twenty-one billion dollars in relief to consumers, Republicans cut the agency's budget in half. last year. Now, as families go into debt to buy food, they wanna further weaken the agency responsible for protecting those families from being cheated. Republicans are advancing another bill that would prevent states from protecting their own residents, from high-cost loans made out of state lenders. Consumer groups warn that these arrangements can be used to make loans carrying interest rates of one hundred or even two hundred percent is beyond the pale to tell Americans struggling to get by that their elected officials can protect them from predatory lenders. Republicans are also pushing legislation that would allow certain complicated insurance products to be registered with less information for investors, including about the company's financial condition, management and risk. Who exactly is being protected here? It certainly is not the consumer. There is a there is bipartisan work we should be doing. Americans lost an estimated one hundred and forty-eight billion dollars to on-line scams and crimes in twenty twenty five. Committee Democrats support legislation before us today that brings law enforcement, regulators, financial institutions, telecom and tech companies, as well as consumer advocates together to identify ways to stop these scams and protect people's savings. And on crypto, Republicans are asking Congress to codify Trump's strategic bitcoin reserve and require the government to hold bitcoin for at least twenty years despite its extraordinary volatility. Yesterday, the crypto bill the Clarity Act failed in the Senate for the same reason this Bitcoin reserve will fail to become law. It does nothing to rein in the crypto-corruption of the Trump family. Republicans need to stop ignoring the fact that the Trump family is lining their pockets, including with a Bitcoin mining company that would directly benefit from the bill before us today. Can you believe that? Committee Democrats will support bipartisan legislation that actually protects families. But we will strongly oppose bill, bills that weaken consumer protections, expose families to predatory lending, conceal information in our nation's history. And with that, I yield back the balance of my time.

General one yields back. Uh, pursuant to notice, I call up H R seventy thirty, the Securing Facilities for Mental Health Services Act, introduced by the Republican whip, Mister Emmer of Minnesota. The clerk will report the bill which was distributed in advance.

H R seventy thirty, to amend section two forty-two of the National Housing Act to provide parity with respect to access to the mortgage insur insurance for hospital programs, for licensed hospitals, and for other purposes.

Without objection, the first reading is dispensed with and without objection, the bill is considered read and open to amendment at any point. Um, Mister Emmer has an amendment in the nature of a substitute, copies of which were also distributed in advance, and I invite the clerk to report that amendment.

Amendment in the nature of a substitute to HR seventy thirty, offered by Mister Emmer of Minnesota, designated as NS H seventy thirty.

Without objection, the amendment is considered read, will serve as the base text

Uh, thank you, Chairman Hill, and uh thanks uh also for bringing this bill uh uh to the committee today. I'd like to thank my colleague, Representative Torres, for his continued support on this over the years. I, uh, for many years, I, uh, we've been trying to move this forward because Nearly one in five Americans living with, uh, are living with mental illness. I, for them getting treatment isn't as simple as just asking for help. In fact, nearly half of those in need go without mental health services. According to a twenty twenty-three study, the United States has twenty-eight psychiatric beds per every one hundred thousand individuals approximately fifty percent lower than the estimated number that is actually needed. In nineteen sixty eight, Congress enacted the Fair Housing Act, which included section two forty two to help spur the construction of new hospitals, and the expansion of existing facilities. For decades, section two forty two has helped eligible hospitals access affordable financing, to build, renovate, and modernize their facilities. Unfortunately, when it comes to inpatient psychiatric hospitals, they have been prohibited from accessing mortgage assistance through HUD's section two forty-two program since they do not meet the patient day requirement. In order to qualify, a hospital must devote more than fifty percent of their patient days to acute care services, such as treatment for short-term illnesses or same-day surgical procedures. Our securing facilities for mental health services act reverses this prohibition, alleviating the inpatient bed shortage across the country and encouraging the expansion of psychiatric inpatient hospitals. Most importantly, our bill does so without changing the standards that every other hospital financed through section uh the section two forty-two program must meet. It upholds HUD's rigorous underwriting criteria and continues to require borrowers to meet all of their financial obligations. In other words, this bill simply extends the same financing opportunities to psychiatric hospitals, that are already available to other eligible hospitals. Investing in psychiatric hospitals not only delivers care to those in need, uh, actually those who need it the most, but it also benefits the broader health care system. Modern behavioral health facilities reduce pressure on emergency departments, improve care coordination, shorten days in treatment, and actually help ensure that patients receive the right care in the right setting. Further, modern facilities will help recruit and retain physicians, nurses, therapists, and other behavioral health professions. Whether you're a patient in Minnesota, Arkansas, or New York, those in need should not be denied care due to outdated laws. This is a common sense, non-partisan bill that will eliminate barriers to mental health resources for those who need it the most. It is for this reason that I urge all of my colleagues on both sides of the aisle to support this measure. With that, Mister Chair, I yield back.

Uh, thanks, gentlemen. He yields back. Is there further debate on the uh ANS, Mister Rimmer uh, the ranking member?

I move to strike the last vote.

You're recognized for five minutes.

Thank you very much. This bill would allow psychiatric uh hospitals, substance abuse treatment centers, and other non-emergency types of hospitals to participate in our federal mortgage Financing program. Since the program was created in nineteen sixty eight, psychiatric hospitals have been barred uh from participating. This restriction was put in place uh because right before that time, people with severe mental health conditions were locked up in overcrowded institutions and left to be forgotten. Community-based care, where patients could stay at home and get treatment outside institutional walls, finally became the norm. Today most experts would agree that we are dealing with a mental health crisis in this nation and more people need help uh than we have beds available. Expanding financing and access to more mental health treatment facilities can serve critical needs for patients and families with few other options. This is particularly needed as President Trump's so-called one big beautiful bill slash almost one trillion dollars from Medicaid and put hospitals serving low income patients at risk of closing including the Martin Luther King Junior Community Hospital in South Los Angeles where eighty-seven percent of his patients are on Medicaid, or uninsured. While the President's bill did include a program to help rural communities, harmed by his Medicaid cuts, he did nothing for urban communities. like my district. That's why I have drafted a bill, the Urban Health Transformation Act, to provide tw- fifty billion dollars to start making up for these cruel Medicaid cuts and help more families access hospitals in cities like South Los Angeles. So I wanna thank my Republican colleagues for working with me to improve this bill, including by adding safeguards to make sure this program is expanded responsibly. temporarily and with reporting to determine if it's safety, it's safely helping people as we intend. I urge my colleagues to support this bill, and I yield back the balance of my time.

Right, you remember yields back, the gentleman from Nebraska.

I move to strike the last word.

You're recognized for five minutes.

I want to stand up and uh support this bill from our majority whip, Emmer. Uh, H R seventy thirty is a good example of the tenacity of a member to working on good i a good idea until it sees a crack through. Rep. Emmer uh first introduced a version of this bill in the and it has long championed this change going back to the hundred and seventeenth Congress. The bill comes from a simple question. If the FHA is gonna offer mortgage insurance for the affordable financing and refinancing of health care facilities, why is that only some kinds of hospitals qualify while others do not? Because that is how section two forty-two mortgage insurance for hospitals The program is open only to hospitals where at least fifty percent of patient days each year are attributable to the treatment of short-term conditions. That works for some hospitals, but not for all, like mental health care facilities, whose patients tend to have longer stays. Why is that an artifact of the original nineteen sixty-eight law? It's likely due to the logic back in the that day. If you think about it, nineteen sixty-eight, most of these severely persistently mentally ill patients We uh were receiving care in state institutions run by their respective states. This was a government service. That care has moved to the community now after decades of reform. Uh, so what this bill would do is amend that nineteen sixty-eight law to remove the patient day requirement to allow more facilities like mental health hospitals, uh, to apply for section two forty-two mortgage. It's important to note it does not change the underwriting of such insurance. and it does not spend any money, and it does not expose taxpayers to any new risks. H R seventy-thirty is a sensible way to take a look back at a sixty year old law, to help hospitals achieve affordable financing and refinancing, and make sure that all hospitals we have and we want today can access the same benefits. And I will I will end with this. Recently, Children's Hospital of Omaha opened an inpatient mental health hospital for adolescents. for kids as young as six years old. This service has not existed in the heartland ever before. Law enforcement are telling us, doctors are telling us, that it's literally saving lives. We have eight year olds that are diagnosed with severe mental health uh diagnoses. Uh, we have schizophrenia in a twelve year old. We have conditions that need treatment. That children's behavioral health hospital is a game changer. for Middle America. And it should have the same options to use the services that section two forty-two currently prohibits. With that, I support the bill and uh yield back it.

Gentleman from Nebraska yields back, the John Wallman from Texas, Miss Garcia.

Thank you, Mister Chairman, I moved just tracks of last week.

You're recognized for five minutes.

Thank you, Mister Chairman, and uh I would first like to acknowledge that this bill can potentially provide critical services for families, individuals with limited alternatives. And it also helps us of course in the care crisis that's facing our country. Uh, Medicaid having suffered the largest cuts in its entire Medicaid history, it has made costs higher, not just for patients, but to hospitals, both urban and rural. So this bill, um, takes a is a small step in addressing some of those co higher costs. I wanna thank Mister Emmer for, uh, visiting and and, um, making some changes as a result of his discussions with the ranking member. Um, and I do wanna remind us that there are still some risks ahead with with this. In t twenty twenty four, the government office shared in a report that when compared to traditional hospitals, psychiatric hospitals are less predictable, increasing risk to the hospital mortgage insurance program. In addition, this committee did not have the opportunity to hear from academic and institutional experts. That is why I was glad to see uh the additional safeguards to limit the program to five years so that we can see the effects of expanding this program. So again, I wanna thank the ranking member and representative Emmer for their hard work on bringing this bill forward. I do plan to f support it. I just wanted to caution about some of the risks that we may face ahead and how glad I am that we gonna take a look uh to make sure how we can make this even better. So thank you, and I yield back the balance of my time.

The gentlewoman yields back. Who seeks recognition on Mr. Emmer's bill? Mr. Chairman. The gentleman from Texas. A mood strike. You're recognized for five minutes. Thank you, Mr. Chair- Mr. Chairman, uh, this is a very interesting discussion that I do agree and support, not only what uh Congressman Emmer's doing, but really the emphasis behind it. The emphasis behind it is the reality that America faces an epidemic problem with schizophrenia. uh and and people who are struggling in life uh and they do need a mental assistance, they do need help. But Mister Chairman, it is as many psychologists will tell you, it comes from a drug induced society that's called THC, that is hemp, that has been taken advantage of over the last five years. Uh you will see if you look at any law enforcement uh type activity, hundreds of people who are being pulled over uh with tens of thousands of dollars in guns and drugs that they are selling and marketing. They're marketing them in rural areas uh like that I serve in East Texas. They're in all of the uh seven elevens. They're available and it's dangerous THC. If you go to any sheriff anywhere in the country, they will tell you that their jails are uh made up of people who are mentally ill. They are in drug psychosis. They are in- involved in this. And I encourage every single member because this is an issue that faces every single member to professionally understand and ask their law enforcement and their psychologist about the use of drugs, THC, marijuana, that is causing not just an addiction, there's causing people to sit at home and lose their life and then go crazy. And you can look at the streets of uh San Francisco and LA and other cities, but if you turn your head on this, you're going to realize we don't need what we've got now, we need ten times this, the number. And so I would challenge each and every member of this financial including many in the audience who were grating at me uh like they think it's a joke. This is a ticking time bomb of the ability that the United States has to have employees who can work without being addicted uh who uh suffer from this, and it it's the the numbers are simply we look at it as a medical issue. It's a legal issue. It's a legal issue where we are addicted to things and and uh we need to see it for what it is. And the United States government nor any legislative body, nor any even city council should understand this issue uh that when you legalize or make available or speak well about THC, as much as you think it's cute or funny, uh uh a huge number of people uh, become addicted. And that is what they live their life. We see all sorts of episodes of people in airplanes doing silly things and all over public places. Uh, there's a reason why Elton John said that that of all the things America has done well, the one thing it's done poorly is become focused on legalizing marijuana. Elton John said that. And Elton John and many other people understand that these are psychosis-inducing drugs that addict people. And that's what you're gonna end up with. We need more hospitals. So I encourage this, Mister Chairman, to be honest about this, because we are engaged in an epidemic in this country. And the people who don't want it to happen are making money off misery. Mr. Chairman, thank you very much. I yield back my time. Gentleman yields back, who seeks recognition on Mister Emmer's ANS. Seeing no others, I'll recognize myself to strike the last word. I want to appreciate uh the leadership from Tom Emmer, uh our FWIP on the remi- majority side and his commitment, long commitment as noted by Mister Flood to this issue. This revises the Federal Housing Administration's eligibility rules for providing mortgage insurance. two hospitals for five years to include facilities that specialize in mental health care. That's the bottom line. That's what this bill does. I appreciate the majority and the majority working together on this bill. It's a step in the right direction for all the reasons that, uh, Mister Sessions just outlined, that we have a health care crisis in this country, we have an inadequacy of behavioral health beds in this country, and Emma recognizes that and has taken a step by suggesting that section two forty-two's specialized mortgage insurance program could help. And so I appreciate his leadership. Since nineteen sixty-eight, the program has helped hospitals obtain nearly five hundred privately financed loans. However, as the program's currently structured, section two forty-two mortgage insurance is only available to inpatient hospitals that provide acute care, meaning that at least fifty percent of those patient days each year must be attributable to treatment of short-term conditions such as surgery or temporary illness. The patient day requirement then effectively excludes hospitals that provide behave- behavioral health, substance use disorder, physical rehabilitation treatment programs from participating. Mister Emmer's bill would temporarily remove that fifty percent patient day requirement and allow a wider variety of hospitals providing intermediate care to qualify for section two of the patient day requirement. two forty-two, mortgage insurance, which would include our mental health and addiction treatment and rehab facilities. Congressman Emmer has long championed this change. I was pleased to see that he worked, uh, uh, with the minority on improving this bill. And over the time, former, our former committee chair, Patrick McHenry and Mister Emmer asked the GAO to evaluate the potential effects of eliminating this acute care patient day issue, and GAO identified no barriers uh to additional hospitals acce accessing the program. However, increasing the scope of the program would mean few new factors and rules for FHA to consider to properly manage the new risks, and GAO in that study recommended Congress consider adopting practices to help manage the potential risks of this expansion. Both these things seem like reasonable options for Congress to consider. Modernizing the existing government programs like FHA section two forty-two, meet today's health care needs, it's a worthwhile goal, and as well as ensuring any new risks are appropriately managed by uh FHA, HUD, uh through uh this bill also. Thus I commend Mister Emmer for his work. I thank both sides of the aisle for working together on this, and I urge a yes vote and I yield back the balance of my time. Anybody else seek uh discussion? Hearing none, are there any amendments to the ANS? There being no further discussion or amendments to the bill, question now occurs on adoption of amendment in nature of a substitute. All those in favor, please say aye. Aye. Aye. All those opposed, sit and file by saying nay. Been assured the ayes have it, and the amendment in nature of substitute is adopted. Question now occurs on ordering the bill as amended to be reported to the House Uh, Mr. Chairman, I'd ask for a recorded vote. A recorded vote has been requested, I'm sorry. recorded votes requested, all those in favor raise your hand, sufficient number having raised your hand, recorded vote is so ordered. And pursuant to subsection C five of rule three of the committee rules, that question is postponed. We'll now move to the next bill. Pursuant to notice, I call up HR forty-three ninety-six, the task force for reorganizing and averting payment scams, the TRAPSAT, which was introduced by the gentleman from Iowa, Representative Zach Nunn. Clerk will report the bill which was distributed in advance.

HR forty-nine thirty-six to establish a task force for recognizing and averting payment scams and for other purposes.

Without objection, first reading this dispense whip. Without objection, the bill is considered read and open to amendment at any point. And Representative Nunn has an amendment in the nature of a substitute, copies of which were distributed in advance, and the clerk will now report that A and S.

Amendment in the nature of a substitute to H R forty nine thirty six, offered by Mister Nunn of Iowa, designated as Nunn one seven three.

The gentleman from Iowa, Mister Nunn, you're now recognized for Um, without objection, amendment's considered read and serve as base text for purposes of further amendment. And Mister Nunnier, now recognized for five minutes to explain your amendment.

Well, thank you very much, Chairman Hill, and thank you to members on both sides of the aisle here who have worked so diligently in fighting scams and fraud. Look, here's the reality, I think all of us have received that call from a friend, a family member, a community member who's had their life savings ripped away from them, tricked. The reality is right now in my home state of Iowa, we've had ninety six million dollars in financial fraud loss, and this really hits home. I share the story of a farmer from Iowa and a Tumwa who got involved in a scam that bled out one million dollars from his farm. By the time he contacted local law enforcement, the money was already gone, but worse, he fell victim to a second predatory lender. One not in Russia, but in Southeast Asia. And this one knew that there was cash in that farmhouse. They sent three mercenaries from New York City to drive to his farmhouse in the middle of the night and steal the remainder of his money. But for his quick work of locking himself in his barn, while he took fire from these mercenaries, local law enforcement was able to respond. But they only caught one of a much larger network. This is why we're working so diligently on scams, not just what happened overseas, but literally happening at the barn doors of farms across our country. Right now, we have seen scams against seniors increase by nearly hundred percent over the course of the last year. In my home state, that's a twenty million dollar increase. But nationally, we're talking about a two hundred billion dollar loss. To put that in perspective, that's the entire US Army's budget for one year gone due to scams and foreign actors. Or more specifically, it's five hundred and fifty million dollars a day being taken and given to foreign actors. Not only does this exploit those in foreign countries, it has a direct impact on safety here at home. It is now the number one financial crime in the United States, and it's going directly to fund some of our worst adversaries. That's why in April of last year, I'm proud to have initiated a bipartisan rule called the Guard Act. alongside my Democratic colleague, Mister Gottheimer, we've given local law enforcement the resources they need to grow, detect and prevent these level of scams. I'm proud to say that just last night that passed with overwhelming bipartisan support and is ready to be taken up in the Senate. The GARD Act is an important front-line approach to fighting scams and fraud. But we must also look at a strategic approach. And that's where, Mister Chair, this TRAPS Act comes in so importantly to bring together all of our federal agencies as well as our private sector knowledge bases, both in the financial institutions as well as our community banking and lenders. The TRAPS Act creates a treasury-led task force, compromised of leaders from the Federal Bureau of Investigation, the Department of Justice, the FTC, and many others, and take them in a collaborative, data-driven approach to detecting and preventing frauds and scams, while working hand in glove with our private sector leads who are dealing with us on a daily basis. If there's one thing my time in the military has taught me, it's that no mission can be successfully completed alone. And this is truly a whole of nation approach to go after these very insidious actors. Meeting this threat head-on takes teamwork across the aisle, it takes teamwork with our protective and intelligence services, and it takes teamwork with those who are working in the most cutting-edge technology. These scams continue to advance, whether they be pig-butchering schemes to steal from our seniors, whether they be advanced AI manipulation in voice and video, or whether they be good old-fashioned check-washing, the technology has expanded beyond what our local law enforcement and candidly what our national defenses alone can handle. Therefore, working through an organized strategy, our nation takes an important step forward to battle these fraudsters with the TRAPS Act. This is another common sense, bipartisan approach Just like the Gart Act. I wanna thank my colleague from across the aisle, Mister Himes, his incredible service both on this committee and the Intelligence Committee to go after these hard actors. I'm happy to say that our forward leaning presence on this has already resulted in success with the US uh D- uh District Attorney as well as the Department of Justice, we've cracked down on operations in places like Southeast Asia, reclaiming nearly a billion dollars in stolen fraud. I'm also happy to say, Mister Chair, we've got an incredible collaboration from AARP to the defense uh credit union, capital one, consumer bankers and so many others. I'd like to enter into the record their letters of support.

Without objection, it'll be included.

Together we can fight back against this. I would urge my colleagues to pass this bill unanimously. I uh yield back the remainder of my time. Thank you, Mister Chair.

Gentleman yields back, who seeks recognition on uh uh the gentlewoman from uh Texas you're recognized

I maybe just tried the last word.

you're recognized for five minutes

Thank you Mister Chairman, I want to thank um my colleague um Mister Nunn for bringing this forward. I recently had the opportunity to meet with financial industry partners in my district, including banks, credit unions and consumer groups. While we discuss many topics we probably spend the most time the most time Mister Chairman on fraud and payment scams. This is an issue that is hitting all all all people all across America, especially our seniors who are the most vulnerable targets. This bill addresses a gap that we identified that day, and that we really need to bring together public-private partnerships as well as law enforcement and consumer groups, together to work on making t- solutions to address this very pressing problem. As hackers, scammers, and illicit actors get faster and smarter, we must work together to stop them. And I may add, Mister Chairman, you know, this is not just a USA problem, this is a global issue. As my colleague mentioned, uh, there are many scam centers across Southeast Asia. I had the opportunity to get briefed on this and about other cyber security, uh, scams, uh, in Thailand in a visit recently on the Kodal. And it is just amazing to me how one little data center, you know, in Cambodia can have such a great impact on many people and consumers in our country, and impact uh consumers globally. So this is a heinous problem and I thank the uh my colleague for bringing this forward. I plan to vote for it and I also wanna thank of course Mister Hines uh for his work on the legislation. I urge the committee to support this Bill, I certainly intend to do so, and I yield back.

Gentleman yields out, the gentleman from Ohio, Mister Davidson, you're recognized.

Uh, thank you, Chairman. I moved straight to the last word. Um, I just wanna applaud Mister Nunn. He's had a strong series of legislation to deal with scams. This is continues that. And I'm also encouraged that it's truly bipartisan. Uh, I am um thankful to work with the ranking member of the National Security Illicit Finance subcommittee. And we have ongoing collaboration on other legislation down this vein. So I hope that we can uh work together to solve this problem. And it's nice to see efforts like this. So nice work, Mister Nunn, and I um encourage everyone to continue this and spread the word through the conference. It's one of these things that doesn't get covered. There are things we agree on and um and sadly it's a problem that that we wish would go away, uh but through our efforts hopefully we can put an end to it. A yield back.

Gentleman from Ohio, a yield back. Uh, gentleman from Massachusetts.

Uh, thank you. Uh, I would like to join in the chorus here. Uh, just to to thank Mister Nunn. This is a thoughtful and timely piece of legislation. Uh, we are seeing the same uh impact in in Massachusetts and across New England, as as the gentleman is seeing among his constituents in Iowa. So we are thankful uh for his his his vision here and uh um I do have, you know, especially on on behalf of my seniors, they seem to be uh targeted uh, you know, more more frequently than other groups. Uh, I've been doing a series of uh senior town halls and and we are continually trying to work with local law enforcement just to inform our seniors about some of the scams that are going on. And it's uh, you know, the the scammers are becoming more diabolical and more sophisticated. And uh they are definitely targeting seniors, so uh I just I'm just applaud the gentleman for his his thoughtful legislation. I do have a a small uh friendly amendment that but I I do not want that to take away from from the superb work that the gentleman has done here uh and uh I'll offer that at the appropriate time so I I yield back but I thank the gentleman for his good work.

Gentleman yields back, the chair recognizes the ranking member.

Sorry.

I move to strike the last moment.

You're recognized for five minutes.

I'm pleased to have the opportunity to speak in support of HR forty-nine thirty-six, the task force for recognizing and adverting Payment Scams Act or the TRAPS Act, uh from representatives Nunn and Himes. A recent report by the Consumer Federation of America found that in twenty twenty five, Americans lost an estimated one hundred and forty eight billion dollars to on-line scams and crimes, representing a loss of eleven hundred per household. This is a shocking number that increases every year and that increased by twenty five percent uh from twenty twenty four. People over sixty years old were the most targeted and suffered the largest losses in twenty twenty five. But notably, those under twenty experienced a two hundred percent increase over the pre- previous year in reported losses from cyber-enabled scams. The TRAPS Act is a first step towards tackling this problem by establishing a treasury-led task force Comprised of government agencies like the Consumer Financial Protection Bureau, as well as representatives from industry, consumer groups, and scam survivor advocates. The task force will examine trends, coordinate prevention efforts, and importantly, propose solutions to prevent fraud and scams. Committee Democrats have been hard at work on this issue. In May, the committee passed a bill led by Representatives Peterson and Flood, that will help ensure banks, especially small banks, have the technology and tools to identify and combat bank fraud. In June, Representatives Gonzalez worked with Representative Kim, advanced the Stop Payments Fraud Act, which will allow banks to pause suspicious payments before they are made available to bad actors. We need to do more to stop this epidemic of fraud. That is why I introduced the Protecting Consumers from Payment Scams Act, which would modernize our laws to better protect consumers who get harmed through these schemes. And yes, we must reverse Trump's unlawful actions and get the Consumer Financial Protection Bureau back up. and running so consumers have an agency fighting for them. This committee must also reinstate the corporate transparency act so fraudsters can't hide their scams and proceeds behind anonymous shell companies. That said, I also wanna thank Chairman Hill and his staff for working with us on a number of improvements made prior to Markov, so I urge my colleagues to support this bill. Thank you, and I yield back the balance of my power.

I can never yield back. Who seeks recognition on uh Seeing no additional speakers, I'll recognize myself for five minutes to talk about Zach Nunn's goodwill. Uh, the comments from our members, you've heard, our members are overwhelmed by uh, constituent comments about fraud and scams, both sides of the aisle, uh, from all sorts. And Dan Muser of our oversight subcommittee, Andy Barr on our Financial Institutions Committee, Warren Davidson on our National Security Committee, all have worked with their democratic colleagues to engage in fighting back against scams and fraud. I have to say, there's nothing more important than consumer education here. Between banks and broker-dealers and mortgage people and telephone companies and the internet I mean it's an avalanche of chaos out there. And we've taken testimony from uh the big data providers, the telephone companies, and so I wanna thank uh Mister Nunn for stepping in on this particular matter with his TRAPS Act. And it just continues to, as the ranking member just outlined, some of the things we've done previously. This just adds to that. Uh, Muser's work, our fraud report, really examines the ways how scammers prey on victims and highlight the necessity of an whole of government and a whole of ecosystem approach if we're gonna mitigate this. Scammers employ so many platforms using a a growth of encrypted on-line messaging platforms like Telegram and WhatsApp to scam their victims. By concealing their real phone numbers, tracing these bad actors becomes exceedingly difficult. You've heard cases where fraudsters will meet their victims on dating apps and immediately transition the conversation to WhatsApp to focus on getting to know each other better. Take Dennis Jones, for example, a retired eighty-two year old who was befriended on social media by a woman named Jesse and the two exchanged messages for months. At some point in those messages, Jesse told Mister Jones about an investment opportunity and convinced Mister Jones to participate. He ultimately sadly sent her his entire life savings. And Jesse disappeared. And unfortunately, and unfortunately this is what we hear time and time again, uh, Mister Jones took his own life. So this is a tragic story, but it is one of something that our members on both sides of the aisle hear about routinely. Fraud schemes are growing at an exponential rate using multiple industry platforms to induce victims into turning money over illegally. And that's exactly what this whole of ecosystem approach needs to be. This issue's far too challenging for one bank. I mean, the banks are avalanched with this. They they report to us, anecdotally, their losses from fraud on their financial statements are greater than the reserves they put in for loan losses. And just yesterday I spoke to the Florida Bankers Association. This was the number one thing they wanted to talk about. is how do we get a handle on this. And the banks are catching check fraud, the banks can sometimes catch this on-line type fraud when the person wants to transfer money out of a financial institution. Uh, but we have to bring together all the stakeholders and that's where Zach Nunn has been leading. This bill builds on the work of Congress, previously as the ranking member outlined, and the Trump administration. Treasury's recent report to Congress emphasizes that they agree that we need a whole of ecosystem approach by bringing together telecommunications and social media stakeholders to come up with solutions. It builds on the important work of the Interagent Interagency Financial Literacy and Education Commission. Increasing awareness and educating our most vulnerable community members, as I said at the my opening, are the is the most important thing we can be doing and that's why I'm glad AARP, for example, is involved in supporting this work. Let's keep working together across all level levels of government to have the tools, better designed, to help fight back against these fraudsters. So I urge a yes vote. I thank Mister Nunn for his work. Does anybody else seek recognition? If not, I'll call for amendments. Is there an amendment to uh Mister Nunn's bill? The gentleman from Massachusetts.

Uh, yes. Uh, Mister Chairman, I I believe I do have an amendment at the desk.

We'll pause while it is distributed. beautiful mmm Mister Nunn? Mister Nunn reserves a point of order. The clerk will now report the amendment.

An amendment to the amendment in the nature of a substitute to H R forty-nine thirty-six, offered by Mister Lynch of Massachusetts, designated as Lynch zero seven five.

Without objection, the amendment's considered read, and now the gentleman from Massachusetts is recognized to describe his amendment.

Uh, thank you, Mister Chairman. Uh, first of all, I wanna again, once again thank and applaud Mister Nunn on his uh thoughtful legislation. Um, as the ranking democrat on on artificial intelligence and and digital assets uh subcommittee, I I just wanna note that the exploitation of artificial intelligence has become a hallmark of much of this uh financial crime. Uh, so much so that the FBI has recently for the first time included an artificial intelligence section in its internet crime report. Uh, my amendment specifically would require the inclusion of at least one representative and and and Mister Nunn has set up a task force here to to really do a deep dive on a lot of the the fraud that's going on here which I I I fully agree with. It's the absence of uh this particular representative who has it would require that the individual have a demonstrated expertise in the application of AI uh to the detection prevention and investigation of the financial crimes that that Mister Nunn has identified. Um as as Chairman Hill has noted, our financial industry industry is swarming uh now more than ever before with aspects and elements of artificial intelligence. Uh, crim you know, different AI models and and these continue to evolve. So these criminals are keeping pace with the the the efforts to thwart them. Uh, criminals are using AI to clone familial voices and mimic emergency calls to demand immediate payments for various uh circumstances. The FBI warned in twenty twenty four that criminals uh continue to develop the availab the ability to exploit generative AI to create sophisticated fake investments and crypto schemes, generating fake trading platforms and using AI avatars or chatbots or other uh techniques to pitch guaranteed returns. In fact, this April the agency reported that AI-enabled cryptocurrency fraud saw the most significant losses ever with a hundred and eighty-one million, excuse me, a hundred and eighty-one thousand five hundred sixty-five claims, totaling more than eleven billion dollars. Cyber-enabled fraud totaled more than seventeen point seven billion dollars in losses. So it's clear that AI related crime is is a relevant and pressing issue that will only grow, uh and which has led to billions in losses for many victims. This amendment, I believe, is necessary to ensure that the task force can to considers the ever-evolving nature of AI in relation to fraud and payment scams. And I've reviewed the the list of uh uh task force members and I I know that the gentleman has tried to be uh complete in his uh inclusion every aspect of it, but uh it's j this is just one maybe because I'm I'm on that uh that task force, and uh the subcommittee um I just think that the complexity uh that we're seeing and the sophistication that we're seeing by the use of ai would really require somebody who has a a deep understanding of of that technology to insist all those other members that the gentleman has correctly identified to include in his task force. So uh again, i i don't want this to be uh to take away or detract from mister nuns work. Uh i intended as a friendly amendment uh to to uh enhance the the great work that he has done already. Thank you and I'll yield back.