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House · Hearing transcript

EPA California At-Berth and Harbor Craft Disapprovals; Fraud Bills

Monday, September 14, 2026

Summary

  • Virginia Foxx convened Rules to advance five measures including California emissions CRA disapprovals, anti-fraud bills, and Russia-Iran sanctions package for floor consideration this week.
  • Gary Palmer said California at-berth and harbor-craft rules impose billions in compliance costs and raise West Coast gasoline prices significantly.
  • Joe Neguse pressed Gary Palmer on GAO and parliamentarian findings that California waivers are ineligible for CRA disapproval proceedings entirely.
  • Republicans blamed costly California mandates for higher fuel prices while Democrats defended clean-air health benefits and accused Republicans of ignoring affordability.
  • The committee will decide floor rules for the five bills, though Senate action remains uncertain amid court challenges and extended recess until November.

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Hearing Details

Members Who Spoke

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Transcript

Rep. Foxx (NC-5)2:07 – 6:23

Good afternoon, everyone. The committee will come to order. Without objection, the chair is authorized to declare recess at any time. Today, the rules committee is convening to consider five measures, HJ res two one O, HJ res two one three, HR ninety-five seventy-six, hr ten three twenty six and the senate amendments to hr five three three four hres two one o and two one three two congressional review act resolutions provide for congressional disapproval of two environmental protection agency rules pertaining to non-road engine pollution control standards together the biden error regulations serve as hidden climate taxes, and inflationary costs that are ultimately paid by energy consumers. Let these regulations serve as a good lesson on how Congress addresses affordability under the two political parties. Republicans want less red tape, more energy choices, and fewer energy dictates from socialists in California. Democrats seem poised to double down on excessive mandates that drive up cost. We cannot and will not regulate ourselves to affordability. It's high time our colleagues understand this. Passage of these two CRAs will continue our work in slashing the burdensome overreaching regulations that the previous administration chose to shove down the throats of hard-working Americans in industries across our nation. Over-regulation is the problem, never the solution. H. R. ninety-five seventy-six and H. R. ten three twenty-six build upon the progress achieved by the Trump administration in combating rampant fraud. This is an issue that the American people care about. Americans deserve to know that their hard-earned tax dollars are not being siphoned away by bad actors of any kind. The White House task force to eliminate fraud, headed by Vice President Vance, has already made tremendous strides in identifying and rooting out blatant fraud and mismanagement. This important work can and should continue. Congress can aid in this work by passing these bills, codifying President Trump's executive orders relating to fraud, and ensuring that taxpayer dollars are safeguarded. Finally, we turn to the Senate amendments to H. R. five three three four, the Lindsey O. Graham sanctioning Russia, and Iran Act of twenty twenty six. This bipartisan package of sanctions will bind the hands of Vladimir Putin, reinforce America's capacity to impose true economic repercussion upon our adversaries, and lead to deterrence on multiple fronts, for our nation and our allies. Peace through strength requires bold, decisive action. Such action is found within this package, And it reaffirms America's resolve and unshakable posture on the world stage. We should not hesitate to pass it. I understand my Democrat colleagues have concerns about the tariff provisions in this legislation and they don't want to give President Trump anything else. But this isn't about President Trump. It's about leveraging the tools of most powerful count- of the most powerful country in the world, the United States. to defend a sovereign nation, a nation my Democrat colleagues have consistently supported from foreign invasion. And I would say to them that if this bill is good enough for Tammy Duckworth, Adam Schiff, and Chris Van Hollen, no friends of the president at all, this should be good enough for them. I look forward to the testimony of our witnesses and hearing more from them about the importance of our slate of bills here in the Rules Committee. With that, I yield to the ranking member for any comments he wishes to make.

Rep. McGovern (MA-2)6:23 – 11:51

Well, thank you very much, Madam Chair. Um, this is our last week here, uh, before November, because Speaker Johnson is sending us home early yet again. We're not gonna be back for many, many weeks. And I look at this agenda and I have to ask, this is it? Really? More bills about fraud, but not a peep about the rich healthcare fraudsters who Donald Trump pardoned. who defrauded billions from medicare not a peep more resolutions overturning environmental rules and attacking the clean air act which is responsible for cleaning up pollution and getting rid of smoke and smog in our air yet another giveaway to the rich and powerful that will raise gas and diesel prices even more and another bill sanctioning russia and iran but let me be clear i stand with ukraine I've called out Putin's human rights abuses for decades. In fact, his corrupt regime banned me from stepping foot in Russia because I wrote and helped pass into law bipartisan legislation going after the Kremlin thugs, who abuse human rights. But let me also say that Donald Trump said fifty-three times on the campaign trail, that he would end Putin's invasion of Ukraine within twenty-four hours. I did the math. It's now been fourteen thousand four hundred fifty-two hours, and he still has not ended the war. Another broken promise. And let's look at uh what's not on the agenda, this rules meeting. The last one before Americans head to the polls in November. Nothing at all, nothing, nothing, nothing to make gas cheaper, nothing to lower rent or healthcare costs, nothing to get grocery prices under control, nothing on inflation, nothing to ease the burden, of tariffs nothing on the war in iran nothing not a thing this is your closing argument i mean really good luck with that well here and here's mine almost two years ago on the day trump was sworn in and republicans won total control of washington gas at that time was three dollars and twelve cents a gallon and inflation was around three percent today gas is four dollars and thirty one cents a gallon and inflation is up to three point four percent and just between you and me i think uh trump is cooking the books i think inflation is actually much higher than that and diesel is over six bucks a gallon the highest it's ever ever been ever let that sink in and i don't mean this year or this decade i mean it's the highest it's been in the recorded history of america when diesel goes up everything gets more expensive And people don't need an economist to get it. They feel it every single day. Meanwhile, Chevron announced in July its highest quarterly profits in six years. Refiners are benefiting from wider margins as global fuel supplies tighten. And Trump's own oil investments have gained millions, millions since he started the war in Iran. All that and the Republican message here today with this package of pathetic bills that you're advancing to the floor is that you just don't care that the issue of affordability is not a priority which i guess makes sense because you guys don't have an agenda of your own you just take your marching orders from trump and hope that nobody notices all the favors you're doing for the rich and powerful in this country the guy who says affordability is a hoax the guy who says he doesn't think about you and your family's financial situation the guy who says grocery prices aren't up the guy who says there is no war, the guy who says tariffs is his favorite word, the guy who says I love inflation. He's actually said that. The White House Press Secretary, the highest Republican spokesperson in Washington, told us in no uncertain terms what you guys do care about, though. She said, and I quote, " At this moment in time, of course, the ballroom is really the president's main priority." Let that sink in. And while he's out surveying the construction and renaming lakes, regular people are getting screwed thanks to his stupid tariffs and his illegal war. And now, since he knows people are fed up, he wants to bribe everyone with a fi- with five thousand dollar checks that are obviously never going to actually be sent out. The reason why people are fed up is not a mystery. It's because of the Republican agenda. It is your war It is your tariffs, it is your billionaire's first big ugly bill, it is your obsession with culture war garbage, uh, uh, while while people are hurting. We are in this mess because Republicans advanced no plan to make people's lives better. And quite frankly, our Republican friends here don't have the spine to tell the President no. Republicans have betrayed their so-called America First movement. You have betrayed the people you said you would help. And come November, and I really do hope and pray, for the sake of our future and for the sake of our country, that we're gonna correct course. And that the American people see through the corruption and the lies, it is time to hold this president, and especially this Republican Congress, responsible for steering our economy off a cliff and driving our country into the ground. And with that, I yield back.

Rep. Foxx (NC-5)11:52 – 12:24

Thank you, Mister McGovern. Without objection, any prepared statements that our witnesses will be included in the record. I now welcome our first panel, Representative Palmer and Ranking Member Pallone from the House Energy and Commerce Committee. Your full statements will be submitted for the record. We ask you summarize your statement in five minutes and address all legislation in your committee's jurisdiction in that time. Representative Palmer, I welcome your testimony.

Rep. Palmer (AL-6)12:25 – 17:20

Thank you, Chairwoman Fox and Ranking Member McGovern and the members of the Rules Committee for the opportunity to testify before you today. I'm proud to speak and support two resolutions of disapproval under the Congressional Review Act. These resolutions continue the important work that the Energy and Commerce Committee led last year, nullifying actions taken by the Biden administration that allowed California to enact radical environmental policies that negatively impact the entire nation. The Clean Air Act section two O nine generally preempts states from imposing their own emission standards, but if certain conditions are met, the EPA administrator may grant a waiver of preemption allowing the state to impose its own regulations. California is the only state that may qualify for a waiver of preemption, but the Clean Air Act permits other states to implement California's regulations once a waiver is granted. This means the EPA's waiver decisions can have national implications. far beyond the local air pollution concerns that California purports to be addressing. House uh joint resolution uh two ten led by Representative Vince Fogg would overturn the waiver allowing California to regulate emissions from certain kinds of ships while they are at birth in California ports. The California rules impose impractical and costly emission requirements on tankers and roll-on, roll-off ships. House Joint Resolution two thirteen, led by Representative James Gallagher of California, would disapprove a waiver allowing California to regulate emissions from commercial harbor craft, including commercial fishing boats, ferries, and tugboats. The California rules would in effect have extended the state's EV, electric vehicle, and zero emission mandates to these vessels that keep our harbors running and people and goods moving. Madam Chairwoman, the Biden Administration's approval of these waivers allowed were needed to impose radical Green New Deal policies over entire industries, granting one state the authority to regulate entire segments of the U. S. economy. Allowing these overburdensome regulations to stand would raise the price for transportation and consumer goods, a price that families across the country are then forced to pay. The at-birth regulations would require ports, utilities and operators to spend billions of dollars to upgrade their facilities and equipment. including installing electric charging equipment to power tanker ships. These compliance costs are passed down to consumers and raise the price of all goods that move through California. According to California's own estimate, the cost of compliance would be around two point four billion dollars. Tanker vessels used to ship petroleum to California's ports and refineries will face at least one point seven billion dollars of compliance costs. Those costs will be passed along to consumers at the pump, raising gas prices, and impacting affordability more broadly. The commercial Harbor Craft regulations would bring the petroleum-delivered supply chain for the entire West Coast to a halt, raising gas prices throughout the country. We've already seen this type of negative impact. A twenty-twenty-five tugboat shortage resulted in prolonged waiting times for incoming cargo ships and additional fees for consumer goods. The commercial Harbor Craft regulations will impose over two point five billion in direct cost on top of the at-berth regulations. This would raise the price of gas anywhere from between eighteen and forty-eight cents per gallon, along the West Coast. Even if we put aside the colossal cost, the actions mandated by California regulations are unsafe. According to the Chamber of Shipping America, the at-berth shore power requirements for tankers pose a significant safety risk, jeopardizing crew and dock members alike. The filters required by the Commercial Harbor Craft regulations have The risk is so s- significant that the Coast Guard wrote to California highlighting this concern. They also raised considerable feasibility concerns over the regulations. Multiple maritime labor unions opposed California's regulations due to these safety concerns. These mandates are not limited to one state. Forty percent of our nation's imports pass through California's ports. Adding enormous regulatory burdens and compliance costs will increase the price of everyday goods. for all Americans. Forcing ocean vessels to retire or be pulled out of service for long periods of time threatens the stability of our national supply chain. The compliance costs associa- associated with these regulations make operations infeasible for several major operators that supply some of our nation's largest ports. California should not be allowed to dictate national policy, especially when their regulations can cripple American - the American supply chain. I urge my colleagues to join me in supporting these important resolutions. I thank you, uh, Mister Chairman, and I yield back.

Rep. Griffith (VA-9)17:22 – 17:26

Gentleman yields back. Now we recognize Ranking Member Pilon for his time.

Rep. Pallone (NJ-6)17:27 – 21:59

Thank you. Thank you, Mister Griffith, and and Mister McGowan, and members of of the committee. Um, I believe the Republican majority is wasting their last week of session on CRAs that don't actually comply with the requirements of a CRA. Instead, The Republicans should actually be doing something about the affordability crisis that the American people are facing. That's what I hear when I go home. This week Congress should focus on lowering costs for all Americans. Trump is destroying our economy with his war in Iran and tariffs on our allies. The national average diesel price is over six dollars a gallon. Gas prices are thirty-five percent higher compared to this time last year. And inflation is at a three-year high. Republican choices have cost the average household more than thirty, eight hundred dollars in higher grocery prices, fuel costs and other expenses. Also they can also they can help the rich get richer and allow big corporations to take advantage of hard-working families. Now I say these congressional re- review acts are resolutions are legal and they target long-standing clean maritime policies that have spurred billions of dollars in investment in cleaner ports and engines saved billions in public health care costs and cut pollution and cancer risk, for those living and working near the ports. H. J. Rez two ten, the first one, repeals the twenty twenty ocean-going vessels at-berth amendments, which simply requires large vessels like container ships, tankers, cruise ships, and auto carriers docked to California ports to either connect to shore power or use an approved emission control strategy. Ships are required to take these measures instead of idling and continuously burning expensive diesel fuel at a time when the national average is soaring over six dollars. the highest in history thanks to Trump's reckless war of choice in Iran. And I should also note that this policy has been in place in some form since two thousand and seven and has cut pollution from large vessels by eighty percent, resulting in taxpayer savings on health care costs and lower cancer risk for American families so this policy that you're seeking to repeal actually works. The second bill, H. J. Rez two thirteen, repeals the twenty twenty-two commercial harbor craft amendments which have a similar story. The amendments simply require harbour craft vessels, such as excursion vessels, tugboats, workboats and ferries, operating within California waters, to upgrade to cleaner diesel engines or zero emission power depending on the vessel class. This standard has been in place since two thousand and nine, to help clean up harbour craft vessels, which are some of the largest sources of cancer causing pollution at ports. All told, the two the twenty twenty-two amendments are projected to deliver five point two five billion dollars in health benefits when fully implemented. So the resolutions, both of them are gonna take all these benefits away. Congress carefully crafted the Clean Air Act to recognize the diverse air pollution challenges facing each state. Due to a history of severe air quality problems, the EPA can grant California waivers to set vehicle emission standards that are more protective than those at the federal level. And EPA has granted dozens of these waivers over the last fifty years, like it did for multiple iterations of the at-birth and commercial harbor craft standards. These policies only apply to ports and vessels in California, and regulated entities are already complying with established and commercially available clean technologies. Uh essentially, Mister Mister Chairman, the the the Mister Griffith, the boat has left port in this matter, so to speak. And unfortunately, it must be said that my Republican colleagues are once again abusing the CRA process to retroactively target legally authorized Clean Air Act waivers. It's very clear that the CRA does not apply to these waivers, so Republicans' insistence on bringing them to the floor is a waste of Congress's time. Now let me just explain a little more about why I think that these CRAs are illegal. The Government Accounting Office concluded, and then reaffirmed, that waivers are adjudicatory orders, not rules, and only concern one specific entity, California, so they're ineligible for review under the CRA. The Senate parliamentarian agreed. And last week a judge granted a preliminary injunction blocking EPA from reclassifying Clean Air Act waivers as rules, and stopping the agency from sending waivers to Congress for nullification under the CRA. I don't know how that could not be more clear. So these resolutions are a waste of time. They once again show the Republicans have no interest in providing much needed relief to American families. And I strongly oppose these resolutions for all these reasons. And I look forward to your questions. I yield back, Mr. uh, Mr. Griffin.

Rep. Griffith (VA-9)22:00 – 22:01

Gentleman yields back, it's always good to see you.

Rep. Pallone (NJ-6)22:02 – 22:07

You too, and I I guess I could quote you Mister Chairman, but I think of you as an energy and commerce person, so

Rep. Griffith (VA-9)22:07 – 22:14

It's it's fine. It's fine. I I I will now recognize Miss uh Fischbach for her time of questioning.

Rep. Fischbach (MN-7)22:16 – 22:53

Thank you very much, and I I just want to say I I appreciate that the that the um in England, isn't it loyal opposition? But that you continue the these aren't words are time these are you know you continue that mantra in pushing that narrative about how um we're wasting time we're not doing what we need to do but but i think that the these it makes sense that we are addressing these things like this over regulation and um and maybe if uh the chairman would just you know how do these regulations impact fuel costs and maybe you could expand a little bit on that

Rep. Palmer (AL-6)22:54 – 23:15

well it's gonna have an enormous impact on fuel costs up and down the west coast uh particularly but it'll also impact fuel costs around the country and we already know in certain industries particularly in agriculture the fuel the transportation cost is greater than than the production of of of the agri agricultural products. So this'll just get passed on to consumers.

Rep. Fischbach (MN-7)23:15 – 23:35

And and I appreciate that and so I that's I wanted to make sure that we you know if we if you hadn't already made the point strongly enough that we re reiterated that because um you know this this continually these are useless these are useless But this, I think it makes sense and we are trying to um do things that will help folks. And so I thank you for bringing it forward.

Rep. Palmer (AL-6)23:34 – 23:58

Well Yeah, I would add that obviously we're dealing with with uh a fuel price increase that's related to what I think is really a continu continuation of the war on terror. I mean, I think most of us agree that we shouldn't allow Iran to get a nuclear weapon. We just remembered what happened on nine eleven twenty five years ago, if those people who carried out that that terrorist attack that had a a nuclear weapon,

Rep. Fischbach (MN-7)24:21 – 24:25

well thank you very much and i appreciate you bringing it forward and appreciate both of you being here i yield back

Rep. Griffith (VA-9)24:26 – 24:30

channel eight of us back now recognize the ranking member of the rules committee mr. mcgovern

Rep. McGovern (MA-2)24:29 – 25:57

well i wanna thank both gentlemen for being here and um mister pomer i wanna thank you for acknowledging that the reason why fuel costs are through the roof right now is because of this uh what i think is an illegal war in iran i mean it is and uh we there's no end in sight um and you know and a and i think that really what we should be talking about right now given the fact that the president seems determined to keep the war going is how do we how do we ease the burden on consumers i mean it's the consumers in this country that are paying these high gas prices it is our farmers who are getting screwed over by the high cost of diesel i think i read a figure that our farmers collectively have paid an additional one point three trillion dollars uh in higher uh diesel cost because of uh what's happening in iran we need to that's where the relief uh and and it's just kind of ironic to me that rather than addressing issues that are gonna actually help regular people uh our constituents um were actually addressing uh matters that quite frankly big oil wants um i mean i i just noticed that the american fuel and petrochemical manufacturers association is urging everybody to uh embrace this bill so we're we're we're we're we're helping we're helping make their their profits even bigger uh but we're not doing anything to ease the um the the cost and the burden on on consumers so in any event that's I don't really have any questions. This is i it is what it is. And, uh, again, I appreciate you both being here and I yield back.

Rep. Griffith (VA-9)25:59 – 26:02

Gentleman yields back. Now I recognize the gentleman from Georgia, Mister Scott, for his time.

Rep. Scott (GA-8)26:03 – 28:02

Well, thank thank you, Mister Chairman. And I know that, uh, while the Democrats are talking about the blame of of why fuel prices are high, I would remind the American citizens it was the Democrats that killed the Keystone pipeline. It is the Democrats that has objected to the building of additional refineries in the united states of america and i commend the president of the united states for having the guts to do what a hundred and fifty democrats said should have been done back in um twenty twenty three and so i i would just um read read part of this provision to you but this you know in twenty twenty three uh international atomic energy agency investigators found uranium particles enriched to eighty three point seven percent at iran's fordau nuclear facility in january twenty uh uranium orange to ninety percent as weapons grade material. And it goes on uh to say that a nuclear Islamic Republic of Iran is not acceptable. Uh, they should not be ab- able to obtain a nuclear weapon. And we should use any and all means necessary to prevent Iran from obtaining a nuclear weapon. And and a hundred and fifty Democrats supported that. The hundred and fifty Democrats, some of which are on the rules committee, supported that. And so the president did uh, what had to be done, Iran was not gonna stop there in Richmond, they proved beyond a shadow of a doubt that they had missile capabilities far beyond what they were allowed to have and what they had said they could have, and so, uh, you can blame President Trump all you want, but the fact of the matter is the Democratic Party that opposed the Keystone pipeline, if it wasn't for the Democratic Party, the Keystone pipeline would have been built, if it wasn't for the Democratic Party, additional refineries would be built, and if it wasn't for the Democratic Party, the price of fuel and energy in this country would be significantly lower, and that would benefit everybody. I appreciate the fact, Mister McGovern, that you said when diesel goes up, everything gets more expensive. I wish that you had governed uh based on that policy,

Rep. McGovern (MA-2)28:01 – 28:03

I do I do I do blame Trump.

Rep. Scott (GA-8)28:02 – 28:03

because that's true.

Rep. McGovern (MA-2)28:03 – 28:03

I do blame Trump.

Rep. Griffith (VA-9)28:03 – 28:04

Gentleman's time.

Rep. Scott (GA-8)28:04 – 28:04

Yes.

Rep. Griffith (VA-9)28:04 – 28:05

I can hear you.

Rep. McGovern (MA-2)28:04 – 28:05

I do blame Trump.

Rep. Griffith (VA-9)28:05 – 28:06

How old are and old are the gentlemen's?

Rep. Scott (GA-8)28:06 – 28:08

But but when when diesel goes up, everything gets

Rep. Griffith (VA-9)28:06 – 28:09

It's gentleman's time he has to yield. Does the gentleman yield?

Rep. Scott (GA-8)28:10 – 28:10

Yes.

Rep. Griffith (VA-9)28:10 – 28:11

The gentleman yields.

Rep. McGovern (MA-2)28:10 – 28:12

Yeah, y- I do blame Trump.

Rep. Scott (GA-8)28:12 – 28:13

Okay.

Rep. McGovern (MA-2)28:13 – 28:16

This war in Iran has I mean we've all seen we've I just I just told you,

Rep. Scott (GA-8)28:14 – 28:15

Yep. Okay. Okay.

Rep. McGovern (MA-2)28:16 – 28:18

gas prices have skyrocketed more because of it.

Rep. Scott (GA-8)28:17 – 28:23

Okay. All right, I'm gonna reclaim my You blame him for the health care crisis too. I went and I did this. I got the Georgia Hospital Association,

Rep. McGovern (MA-2)28:22 – 28:23

I do too.

Rep. Scott (GA-8)28:24 – 29:11

I got the Georgia Hospital Association to survey their hospitals. And this is nineteen hospitals in the state of Georgia have three hundred and ninety-six million seven hundred and ten thousand in outstanding claims on Medicare Advantage plans alone you know who the biggest culprits are? United Health Care is the biggest culprit. Humana is the second biggest culprit. Aetna is the third biggest culprit. The same companies that you demanded that we give fifty billion dollars in subsidies to are the ones that don't pay the claims to the hospitals. I represent rural America. I appreciate the fact that you people that represent metro areas think you know better about what's happening than we do, but in my part of the world, the same companies that you wanted to give the fifty billion dollars to, so they could distribute it to their executives and their shareholders, they're the ones that don't pay the claims. So.

Rep. McGovern (MA-2)29:12 – 29:13

Will the gentleman yield?

Rep. Scott (GA-8)29:12 – 29:15

You know. No, I won't.

Rep. McGovern (MA-2)29:15 – 29:16

Oh, I just wanted to point that out.

Rep. Scott (GA-8)29:15 – 29:16

You did this.

Rep. McGovern (MA-2)29:16 – 29:18

The gentleman didn't yield. The frog the frog. Yeah, I'm like,

Rep. Scott (GA-8)29:17 – 29:30

You did this. You did this and when you all passed the laws, you could have made the prompt pay laws apply to um to Medicare Advantage, and you chose not to because you're on the side of the big insurance companies.

Rep. Palmer (AL-6)29:30 – 29:31

Y- we don't

Rep. Scott (GA-8)29:31 – 29:32

We're gonna fix that though.

Rep. Palmer (AL-6)29:31 – 29:34

gentlemen did not yield. We don't hardly get a price, sir.

Rep. Scott (GA-8)29:32 – 29:33

We're we're gonna fix that.

Rep. Palmer (AL-6)29:33 – 29:34

Gentlemen did not yield.

Rep. Scott (GA-8)29:34 – 29:38

I'm I'm not yielding, I got three and a half minutes. Mister Palmer.

Rep. Palmer (AL-6)29:38 – 29:38

Yes, sir.

Rep. Scott (GA-8)29:40 – 30:07

You do an exceptionally good job up here. I listened to the word salad that was put out by um, Mister Palone, but the fact of the matter is I think this - this - this is a good piece of legislation. It's not actually legislation, but a good resolution that needs to pass. I just - before - before I yield the time back to the Chair, do you have anything further that you - you would like to clarify, uh, from the word salad?

Rep. Palmer (AL-6)30:08 – 31:08

Well, I think the - the key thing here is - is that we - we continue to impose burdens on - on working class Americans. And and it's unnecessary. Uh, some of the uh the things that Californians are doing from a technology perspective is is not possible. I mean, I I I call this black box technology. There's nothing in the box. Uh, as you know, Mister Scott, I've worked uh for two international engineering companies and and one of them, uh, combustion uh engineering, I worked in the environmental systems division. So I have a pretty good understanding of what it takes uh in terms of environmental protection, whether it's air quality or water or or whatever and and states like California continue to push things that just frankly, the technology to do it does not exist. And that that makes uh the uh capital more expensive because it it creates uncertainty. Uh, and one example that I read uh of one of these uh boats, the the the boat captain had to replace his engine six times.

Rep. Scott (GA-8)31:09 – 31:09

Oh yeah.

Rep. Palmer (AL-6)31:10 – 31:12

So, uh, I I do think that

Rep. Scott (GA-8)31:12 – 31:26

Mr. Palmer, I had a nineteen ninety-nine F two fifty. It got better gas mileage than my twenty-twenty-two does. If they would have left industry alone, we would have significantly better fuel economy today. We would.

Rep. Palmer (AL-6)31:26 – 31:26

Well,

Rep. Scott (GA-8)31:26 – 31:30

How how is it that a that an ninety-nine got better fuel economy than a than a twenty-two?

Rep. Palmer (AL-6)31:26 – 31:33

um Well, the other point that the other point that you made to,

Rep. Scott (GA-8)31:31 – 31:32

Was it better engine?

Rep. Palmer (AL-6)31:34 – 31:40

uh, Mister Scott is in regard to the refineries. We haven't built a new refinery since the nineteen seventy four

Rep. Griffith (VA-9)31:40 – 31:40

mmm

Rep. Palmer (AL-6)31:40 – 32:01

there's one under way in in texas but but refineries for uh general fuel uh and and diesel are little bit different because diesel is a distilled fuel uh we're not doing what we need to do to meet the the economic demands energy demands fuel demands that the country has and if we did i think uh prices would be considerably lower

Rep. Scott (GA-8)32:01 – 32:40

they'd be lower for everybody their power bills would be lower uh the power bill would be lower at the grocery store You know that the, and I know this because of my my committee work, but um the spread between the retail and the wholesale price of protein has never been higher in this country. And a significant portion of that is what the grocery stores are having to pay in in in their power bill because the Democrats are just infatuated with wind and solar, won't let us build nuclear, won't let the heat stone pipeline come in, won't let us build refineries, um, you know. I i'm gonna yield back to the chair but i appreciate you mister palmer being here with this this good resolution

Rep. Griffith (VA-9)32:41 – 32:45

gentleman yields and i recognize gentlelady from pennsylvania miss cannon for her time of questioning

Rep. Scanlon (PA-5)32:46 – 34:50

thank you mister chairman uh i'm glad that we're at least talking a little bit about the burdens on working class families but specifically what we have before us are two resolutions to strip away california's protections designed to reduce harmful air pollution at some of the busiest ports in our country. And these are communities that already bear an enormous burden from dirty air. And those protections, they do relieve burdens on our working class families, because without those protections, those working class families breathe that dirty air and they end up paying the health care costs the the price in shortened lives et cetera. But, you know, instead of working the lower costs for American families, our Republican colleagues are harder for states to protect their own residents from harmful pollution. And that fits the broader pattern of Republican priorities that we've seen for this term. Trump administration and congressional Republicans have spent the past year and a half putting their thumbs on the scale to increase corporate profits, dismantle environmental protections, roll back pollution standards, and abandon investments to reduce greenhouse gas emissions. So the consequences of weakening those environmental protections do hit our working class families every single day. We should be focused on making our constituents' lives safer, healthier, and more affordable. Instead, as our Republican colleagues decide to leave Washington for another seven weeks, they're once again using our limited time to weaken protections for our kids' and our communities. So, uh, ranking member Pallone, you're on the Energy and Commerce Committee. Um, uh, could you just give us one or two possible environmental or affordability issues within your committee's jurisdiction, that Congress could spend its time on instead of repealing air pollution regulations?

Rep. Pallone (NJ-6)34:50 – 34:56

Well, the biggest, um, uh, concern that I hear at home is about, uh, health care.

Rep. Scanlon (PA-5)34:56 – 34:57

Mm-hmm.

Rep. Pallone (NJ-6)34:57 – 35:19

Um, And I know that was relevant. I think Georgia was talking about that briefly too. But I mean the bottom line is when we, when the Republicans refused to uh, to reauthorize the um, enhanced premium tax credits, uh, health insurance for uh, many of my constituents and around the country went up two times, sometimes three times, right?

Rep. Scanlon (PA-5)35:19 – 35:19

Mm-hmm.

Rep. Pallone (NJ-6)35:19 – 36:36

And so we find that many people have simply decided to drop health insurance. Um, and um, You know, the other major issue would be to try to reduce, uh, the cost of prescription drugs. We did pass legislation, which is now law, that says that when you're dealing with Medicare, uh, that the government can negotiate, uh, lower prices, which they have, even under, you know, using that legislation, even under this administration that's happened. But I'd like to see it expanded to the commercial, to the private insurance sector, not not just, uh, not just, uh, uh, Medicare. And, you know, I, uh, met last week with the hospitals, uh, in my district, and they're all concerned about the cuts to hospitals. What's happening now, Miss Ganelon, which is amazing to me, is I didn't even know that under New Jersey law a hospital can get a license, and it's not required to have OBG one, not to, not even to deliver babies, not to have pediatrics. And so not only do we have hospitals closing, but we hosp- we have hospitals now that don't deliver babies, don't do pediatrics. I mean all these things that were in the big, I call it the big ugly bill, are coming home to roost now. And these cuts are impacting hospitals, nursing homes, people not having insurance, lack of access.

Rep. Scanlon (PA-5)36:36 – 36:37

Mm-hmm.

Rep. Pallone (NJ-6)36:37 – 37:02

Um, so this is one of the biggest things that people care about. Um, and they certainly don't want uh, pollution standards reduced, which of course the Trump administration is doing not only for the ports in California but across the board. I mean he i think today if i'm not mistaken the administration is gonna announce that they're not even enforce the uh the clean air act uh standards uh for power plants for utilities

Rep. Scanlon (PA-5)37:02 – 37:49

yeah it it's crazy and you know begging to differ with my colleague from georgia these um cuts to uh health care funding and everything don't just effect the royal hospitals we lost an entire health care system in my district because it was dependent on medicaid people are losing access to medicaid it was also being run by a private equity firm which is another issue we have to address but I completely agree we should be looking at expanding access and affordability of health care expanding access to Medicare to Medicaid to these things instead of not just restricting access to health care and affordability of health care but by rolling back pollution laws giving people more health issues to contend with so thank you for your testimony I think the gentleman from Massachusetts.

Rep. McGovern (MA-2)37:49 – 39:51

I don't wanna belabor the point, uh, but I think uh, we touched a nerve uh, when we talked about uh, what the realities are that have been caused directly by this administration and by this congress. I just wanna remind people uh, Democrats didn't uh, pardon, Medicare fraudsters. Republicans did. Uh, Democrats didn't cut Medicaid by a trillion dollars. Republicans did. Uh, Democrats didn't start a war in Iran, an illegal war in Iran. uh republicans did a war by the way that has jacked up uh uh fuel prices uh to the point that uh you know not only are consumers being uh adversely impacted but our business community is being adversely affected democrats didn't start these uh these tariff wars with like our allies like canada which by the way uh we are paying a price for that right now um uh all over the country uh republicans did that and democrats didn't say that affordability was a hoax because the bottom line is i don't care whether you go to blue states or red states or purple states people are struggling they're struggling like never before uh affordability is not a hoax it is a real issue people uh can buy less at the grocery store they're having trouble making their rents they're having trouble filling up their gas tank and they're having trouble uh affording health healthcare so i i point all of that out because we're in a crisis right now and i think what you're hearing on our side is in the with all of this happening you guys say let's let's let's start our recess two weeks early let's not do anything on any of these issues um oh and by the way uh we have the ceo of anthropic telling us that ai is an issue that needs to be addressed immediately this is an emergency um and then the speaker of the house is on tv saying ah no big deal you know we'll we'll get you know we'll we'll get to it when we get to it i mean i think what the american people want whether you're a democrat or republican is like to have their congress have a sense of urgency that were actually wanna do something to help make their life better. And unfortunately, this Congress has failed. I thank the General Lady. I yield back.

Rep. Scanlon (PA-5)39:51 – 39:52

Thank you. I yield back.

Rep. Griffith (VA-9)39:53 – 39:59

Gentleman yields back to the lady who yields back to the chair now. Recognize the gentleman from Colorado, Mister Nguz, for his time of questioning.

Rep. Neguse (CO-2)40:00 – 40:41

I thank the uh I thank the chairman and I certainly echo the sentiments of the ranking member and my colleague from Pennsylvania. Mister Palmer, i wanna get a better sense of of the procedural posture of the cras that you're submitting to the house for its full consideration and wanna make sure that i understand the permissibility of what you all are proposing so my understanding is that the government accountability office the gao has concluded that these waivers are not subject to the cra Is that your understanding as well?

Rep. Palmer (AL-6)40:45 – 40:50

They wouldn't ordinarily be, unless the EPA determines that they're not waivers but regulations.

Rep. Neguse (CO-2)40:51 – 40:53

Unle- I'm sorry, could you repeat that part?

Rep. Palmer (AL-6)40:53 – 41:05

They, uh, ordinarily would not be, unless the EPA determines that they're not waivers but regulations. And at that point then, uh, they would come under the Congressional Review Act.

Rep. Neguse (CO-2)41:05 – 41:16

Has the EPA, under any Republican, or a democratic presidential administration previously submitted waivers as rules to the Congress?

Rep. Palmer (AL-6)41:17 – 41:20

Uh, I wouldn't know. I I just know what's going on now.

Rep. Neguse (CO-2)41:20 – 42:15

My understanding, just to kind of put brass tacks here, is that the GAO has said these waivers are not permissible to be considered under the CRA. The Senate parliamentarian has indicated that these waivers are not permissible to be modified rescinded through the CRA and that no democratic or republican administration prior to trump in his second term have made this argument that waivers are subject to the CRA which is precisely why a federal district court two weeks ago concluded that these waivers would ultimately were not it the process by which the epa was pursuing to repeal them was improper which i'm sure you're aware of

Rep. Palmer (AL-6)42:15 – 42:30

well i i understand that waivers are not subject to the cra but once they've been deemed to become regulations by the epa which has jurisdiction over this uh then they are subject to review by congress which i think

Rep. Neguse (CO-2)42:29 – 42:30

and did the epa

Rep. Palmer (AL-6)42:30 – 42:37

the american public would would want us to do our due diligence in reviewing a regulation.

Rep. Neguse (CO-2)42:35 – 42:37

When did the EPA make that determination?

Rep. Palmer (AL-6)42:39 – 42:42

Um, uh, earlier this summer, I believe.

Rep. Neguse (CO-2)42:42 – 42:46

Correct. Not when this initial when these initial waivers were granted.

Rep. Palmer (AL-6)42:49 – 42:51

Well, I don't know exactly when the waivers were granted,

Rep. Neguse (CO-2)42:51 – 42:54

The waivers were granted in January of twenty twenty five.

Rep. Palmer (AL-6)42:51 – 42:57

but Then that but

Rep. Neguse (CO-2)42:56 – 42:56

So

Rep. Palmer (AL-6)42:58 – 43:05

that means that the EPA did their due diligence to review the waivers to make a determination as to whether or not their waivers are regul- are regulatory in nature.

Rep. Neguse (CO-2)43:06 – 43:19

Mr. Palmer, what happened, what what intervening event happened between the initial waivers being granted and the EPA reaching a different conclusion sixteen months later?

Rep. Palmer (AL-6)43:20 – 43:23

Well, you would ask have to ask the people who did the review at the EPA.

Rep. Neguse (CO-2)43:23 – 44:05

A presidential election happened, Mr. Palmer. I'm not there's no the initial waivers were granted by the prior administration. And at that time, the EPA did not indicate to the Congress this argument that you're making, that somehow this waiver now functions as a regulation. It was not until the Trump administration, post facto, sixteen months down the road, then concluded and made this argument that you're making, that somehow the CRA covers this type of waiver because they're submitting it to the Congress as a regulation. Which, by the way, I don't, is an unprecedented stance for the presidential administration to take, and has not been taken before, is my understanding in the context of any regulation.

Rep. Palmer (AL-6)44:06 – 44:12

I think my friend, though, said that the waivers were granted in January of twenty-five. Was that right before the Trump administration began?

Rep. Neguse (CO-2)44:11 – 44:12

Correct.

Rep. Palmer (AL-6)44:13 – 44:51

Well, that's consistent with what, uh, uh, previous Democratic administrations have done. Uh, and and I say this to my friend from Colorado, uh, it was clearly political. Th- these are, uh, another example of midnight, uh, regulations through a waiver process. My my estimation would be that they chose to go to deem these waivers because they knew that the waivers wouldn't be subject to congressional review, and that's why they did them at the last minute. So once uh the Trump administration came in, the EPA began to review all of these midnight regulations, they had an opportunity to determine whether or not it's a waiver or regulation.

Rep. Neguse (CO-2)44:52 – 45:29

Well, we'll have to agree to disagree on the motives of the uh the prior folks at the epa who i believe i presume were trying to address the pollution concerns of folks in southern california that being said what i would suggest to you is that even if this resolution were to pass the house it is going nowhere fast because we know from the senate parliamentarians prior indications that the cra will be considered impermissible in the united states senate so in effect this passes later this week, nothing happens. Fair enough?

Rep. Palmer (AL-6)45:29 – 46:02

Well, again, to my friend, one of the things that indicates to me that they haven't given a lot of thought to this, that these were passed through at the last minute midnight, is that some of the requirements, the technology simply does not exist, uh, to achieve, uh, what they're trying to, to do through the waivers. And if you were really thoughtful about, uh, your regulations, one of the, the things you'd wanna make sure of, before you ever issued one, is that the technology exists to actually achieve what what you're trying to achieve, and that that simply didn't happen.

Rep. Neguse (CO-2)46:03 – 47:00

Again, you're entitled to the arguments that you're making on the merits. I'm talking about process. I'm simply suggesting to you that notwithstanding, you know, to my friend from Alabama, you know, your testimony today and your presentation, as compelling as you and and, uh, my colleagues on the side of the aisle may find it, this resolution is going nowhere fast. It's it's not this is not going to pass the United States Senate because the parliamentarian has indicated that a waiver is not a permissible tool, uh, to be or rather the CRA is not a permissible tool to consider a waiver like this. So I'm tr- I guess what I'm trying to get at, maybe without, you know, kind of going through all these hoops, it just seems like we could be spending an awful lot of our time on more productive functions in this congress then on a resolution that we know is ultimately never get into the president's desk and mister polone i i don't know if you care to expound on that or

Rep. Pallone (NJ-6)47:00 – 47:29

well i i'm i i totally agree with you that the um that these waiver i mean that this these resolutions are illegal for all the reasons that you said but i would also point out that you know one of the things mister mcgovern is not here right now but one of the things that he always points out is how many of these things never even get sent by the speaker to the senate. So I would venture to guess that uh this is one of those that uh the senate will not even see.

Rep. Neguse (CO-2)47:30 – 47:57

Fair enough. I I I agree with uh I certainly agree with the ranking member. Um, it's probably likely this thing doesn't get sent over in the first place, but which begs the larger question of why we're even considering it. But uh, Mister Palmer, wh- what's your sense of I guess I'm just interested in your opinion. Do you think that we should uh The House should be going on recess starting Thursday. I think w- the, my understanding is that Republicans have decided we're not coming back to Washington till November ninth. And I guess I wonder if you think

Rep. Palmer (AL-6)47:58 – 48:00

Well, I don't know all of the reasons,

Rep. Neguse (CO-2)47:59 – 48:00

that's an appropriate way to press this dinner table.

Rep. Palmer (AL-6)48:00 – 48:02

uh, but I, I, I do, uh

Rep. Neguse (CO-2)48:02 – 48:04

Oh, I'm not asking about the reasons. I'm just curious if you agree with it.

Rep. Palmer (AL-6)48:03 – 48:16

Yeah, well, I came here to work. We lost probably forty plus days because of the Schumer shutdown and the fall of twenty-five. So I, I, I, I think that my friend from Colorado is going down a different path here that

Rep. Neguse (CO-2)48:16 – 48:18

Well, I'm just I guess I'm saying

Rep. Palmer (AL-6)48:17 – 48:17

Yeah.

Rep. Neguse (CO-2)48:19 – 48:40

we're slated to go out of session on September seventeenth, Constitution Day, I might add, and we're not coming back to Washington until November ninth. And that's because Speaker Johnson made the decision to cancel the last two weeks of session in September. And I'm just trying to get a sense as to whether or not you agree with that. It sounds like you disagree with that.

Rep. Palmer (AL-6)48:40 – 48:44

Well, I I came here to work, but, um, I think the speaker,

Rep. Neguse (CO-2)48:44 – 48:45

Would you mind what he mean?

Rep. Palmer (AL-6)48:44 – 48:54

I think the speaker has a responsibility to do do what he thinks best, uh, in his position, and I'm I'm going to, uh, support him in the decisions that he makes.

Rep. Neguse (CO-2)48:54 – 49:26

Well, I wish, Mister Palmer. I mean, it sounds like, you know, you said you you you you've come here to work, but only if the speaker decides that it's appropriate for you to work, is what that sounds like. Cuz I, well, guess what I'm asking is, I would welcome your participation, maybe we could implore the speaker, to keep the house in session next week, we've got a lot of hefty issues to tackle, references to ai just by way of example is a lot for us to do you suggest that you came here to work i came here to work as well let's make the case to the speaker to keep us in session instead of sending everybody home for eight weeks

Rep. Palmer (AL-6)49:26 – 49:29

well i'll be happy to communicate your wishes to the speaker

Rep. Neguse (CO-2)49:29 – 49:42

oh i i i don't know that if it's just communicating my wishes that that's gonna land well with the speaker i'm i'm hoping that you'll join me in that effort it could make a collective effort mister palmer hope springs eternal i'll keep trying alright i yield back uh to the chairman

Rep. Griffith (VA-9)49:43 – 49:50

gentleman yields back now recognize the gentleman from south carolina a good friend mr. norman you have any questions

Rep. Neguse (CO-2)49:50 – 49:52

how's it going caroline no questions

Rep. Griffith (VA-9)49:53 – 49:56

now recognize the gentlelady from new mexico miss lager fernandez

Rep. Leger Fernandez (NM-3)49:56 – 50:05

thank you so very much mister chairman um so uh mister palmer uh what's the price of diesel uh in your hometown

Rep. Palmer (AL-6)50:07 – 50:11

it's about um i think it's little over six dollars a gallon

Rep. Leger Fernandez (NM-3)50:10 – 50:13

six dollars do you know what the price of diesel is about

Rep. Palmer (AL-6)50:15 – 50:17

it was um close to four i think

Rep. Leger Fernandez (NM-3)50:18 – 50:24

four yeah so you know in the last week i've seen diesel go from uh about five eighty nine

Rep. Palmer (AL-6)50:18 – 50:19

mmm

Rep. Leger Fernandez (NM-3)50:24 – 51:09

and then i filmed a video actually where it was at six twenty nine and then today it's at six forty five in new mexico so diesel is going through the room right and it's hurting people in my communities because we just drive diesel trucks we use diesel in our tractors and they use diesel on these ships right and so what i don't understand is why you want to make sure that these ships these containers continue to use diesel instead of plugging in ranking member uh does it make any sense to you that we're sitting here uh trying to uh make sure that there is uh more use of diesel rather than plugging in and saving some

Rep. Pallone (NJ-6)51:10 – 52:05

carbon data absolutely not and and look i i made the point before in my opening statement that these clean maritime policies that are gonna be reversed by these cras are working and they've been around for a while they're not new they're working they're uh creating more investments in in shipping not only in um in um uh cleaner energy uh but just investments in general which is so important so It, this is a policy that's, that's been reversed by the Republicans. It not only makes no sense, um, what's for, because of what you said about diesel, makes no sense from an environmental point of view, no, makes no sense from an economic point of view. I don't even know who's in favor of it. I, I just don't get it. There's nothing, uh, positive that comes out of this, reversing these long-standing maritime policies that are encouraging clean energy and make economic sense.

Rep. Leger Fernandez (NM-3)52:05 – 52:13

Well, maybe, Mister Palmer, you know, you might know, uh, how much, uh, American international oil producers made in profits this last year.

Rep. Palmer (AL-6)52:14 – 52:15

I I don't know.

Rep. Leger Fernandez (NM-3)52:15 – 52:57

You don't know? Well, it's about sixty five point five billion. That's sixty five percent higher than the same period in twenty twenty five. So, you know, these policies that Trump and the Trumpublicans seem to pursue benefit the biggest corporations. the biggest corporations, we see that over and over again, that they prioritize uh fossil fuel and, you know, it's got its place, right? It's got its place. But not when you are undermining uh a policy that's worked in uh, by the way, uh, uh, ranking member Pilon, does this apply to Florida? Does this apply anywhere else besides California?

Rep. Palmer (AL-6)52:57 – 52:57

No.

Rep. Pallone (NJ-6)52:58 – 53:06

No, no other uh state has adopted the waivers from California the way they have for example uh with cars, no other state.

Rep. Leger Fernandez (NM-3)53:07 – 53:36

Right, so California is kind of leading the way in this. Uh, electricity uh is a lot cheaper to produce. We got renewable electricity coming on now. And we all know, uh the Republicans don't like to admit it, but that is the cheapest form of electricity right now is renewables. And so when you plug in you might be having some of the most affordable forms of energy, and but they wanna just keep prioritizing those oil and gas profits, I suppose.

Rep. Pallone (NJ-6)53:37 – 54:02

A- and what I would point out is of course other states could adopt these policies, but California is very unique, right? And part of the reason that we have waivers is because uh we wanna allow states to do what they think is best for their local economy, for their local citizens. I mean this is a long-standing policy of of having uh waivers because of the situation is being different in different states.

Rep. Leger Fernandez (NM-3)54:03 – 54:09

So this is another instance of republicans dictating from DC what people should be doing, uh, in their own states.

Rep. Pallone (NJ-6)54:09 – 54:10

Exactly.

Rep. Leger Fernandez (NM-3)54:09 – 54:14

Dictating from DC and then prioritizing the biggest corporations, that's what this looks like to me.

Rep. Pallone (NJ-6)54:14 – 54:15

Exactly.

Rep. Leger Fernandez (NM-3)54:15 – 55:01

Okay, well, with that, uh, and I also am very sad that we are not dealing with, uh, the emergencies that are before us, which is the high price, of energy, which is the ai threat. Uh, and instead of actually staying in and dealing with the ai threat, there are bills that have already passed, uh, science and technology that we could be picking up. There are bills that are bipartisan bills. And we're not dealing with that. Instead, they're sending us home. And what we hear Johnson saying is, oh, that that's fine. Will the industry, will the industry, you know, police itself? That's like asking Uh, we call it Lobo. We don't call it the fox, but that's like asking the wolf to decide how he's gonna protect the sheep.

Rep. Pallone (NJ-6)55:02 – 55:30

And the problem with that is that there may be some good actors in AI who have now said that, you know, this is a real dangerous thing that could impact humankind, but there's always the bad actors. And so if we don't act, and we just assume as the speaker says that, uh, the companies are going to deal with this on their own and you know, care enough. Uh, that may be true for some of them or even the majority of them. But what about the ones that don't go along with it?

Rep. Leger Fernandez (NM-3)55:31 – 55:40

Right. Well, uh, it is unfortunate that the speaker, uh, and those who support him are sending us home instead of doing the important work of Congress, and with that I yield back.

Rep. Griffith (VA-9)55:46 – 57:44

Certainly don't want to be a defender of AI and it certainly has risks and and And, uh, there are good actors and bad actors, and I agree with Mister Pilon on that, but I would remind folks that long, long time ago there were good actors and bad actors with new innovation. We could domesticate horses and ride them, and the Mongol hordes came pouring out of, uh, the golden horde of, uh, Genghis Khan came pouring out of Asia and conquered, uh, a big chunk of the world. Uh, so, yes, there are bad actors with new technologies. but that doesn't mean we shouldn't use the new technology. But those who argue that we shouldn't perhaps use AI might be arguing that, you know, a thousand years ago maybe we should be careful with this, these domesticated horses, because they could be used, uh, in a negative way. By the way, the f- those who don't know, Mr. Palmer probably knows this, the Mongolians figured out with their ponies a way that they could outride all night by sucking the blood out of the neck of the horse or the the pony as they were called, and that's how they were able to be in one location one night and show up at the gates of the next city over that people didn't think there was any way they could get there. That said, uh, let me talk about waivers and and regulations. Cuz all of this stuff, you know, I'm sitting here and all these little facts are floating around in my brain, driving me crazy. Um, I understand that the that the Senate parliamentarian may have taken a stand, but CRAs, if it is in fact a rule and it's now recognized as a rule, we weren't in a position to deal with it earlier because it was hidden under the cloak of invisibility, a. k. a. a waiver. And once it is deemed that it is in fact a rule, the day upon which it was deemed begins the clock running is my understanding. And while the Senate Parliamentarian says we can't take up waivers, what will they say about regulations? I don't know. But I do know this, uh, Mister Palmer, does the Senate Parliamentarian have a vote in the Senate?

Rep. Palmer (AL-6)57:45 – 57:50

Uh, the Parliamentarian does not have a vote in the House or the Senate.

Rep. Griffith (VA-9)57:46 – 58:43

The answer is no. That's right. Uh, that's exactly right. And so the Senators get to make that decision and the CRA bypasses uh the uh modern filibuster rule which requires the sixty votes, and it merely requires a majority. So, I don't know what the Senate will do and it's one of the things, again, one of those little facts that drives me crazy, Jefferson believed in the two houses not discussing what actions might be taken in the other house, because each house has to make a decision independently. and today this rules committee and ultimately the House will make an independent decision. Whatever the Senate does, it may do. And right now they have, I think, more than twelve hundred of, I think it's actually more than thirteen hundred, but don't hold me to that, House bills that have crossed during this session. Many of them bipartisan have gone over to the Senate, no action has been taken. And so we hear that, you know, we're leaving town, we're not doing our work. We have done a tremendous amount of work. Have we not, Mr. Palmer?

Rep. Palmer (AL-6)58:43 – 58:45

Yes, we have, Mr. Chairman.

Rep. Griffith (VA-9)58:44 – 59:05

And we've sent it over to the Senate and they have not acted. And my understanding is, is that the speaker reserves the right, should the Senate suddenly take action on a number of our significant bills, and not all of them are significant, I get that. But if they'd suddenly take action on a number of our significant bills, we can be called back into session at any point in time. Is that not correct?

Rep. Palmer (AL-6)59:05 – 59:06

Absolutely, Mr. Chairman.

Rep. Griffith (VA-9)59:06 – 59:36

And lastly, but not leastly, I would just have to say that that I know that everybody wants to vilify everything in the big bill. And and I will tell you, I never called it beautiful because I don't believe any bill that's two thousand pages long is beautiful. It can be big and it can do some good things, but there's always something in there that you don't like when it gets that big. So I never called it beautiful, but there's a lot of good stuff in there, but the rules related to health care, th- they don't take effect until October of next year, do they?

Rep. Palmer (AL-6)59:36 – 59:37

I think that's correct.

Rep. Griffith (VA-9)59:37 – 59:48

And therefore, when uh, an allegation is made that the problems in rural communities with maternity care which existed before the bill ever passed can't possibly

Rep. Palmer (AL-6)59:48 – 59:49

May I, may I

Rep. Griffith (VA-9)59:48 – 59:52

be the fault of the bill can they and I'll open it up for you to answer that.

Rep. Palmer (AL-6)59:52 – 59:52

May I speak to that?

Rep. Griffith (VA-9)59:53 – 59:53

Yes, you may.

Rep. Palmer (AL-6)59:54 – 1:03:37

Mister Chairman, we put in fifty billion dollars to transform rural health care. I grew up in rural Alabama. We not only don't have a clinic, we don't have a traffic light in the town I grew up in. Someone, uh, has a stroke or a heart attack, they can call an ambulance, but it might be an hour, at least, maybe longer, before they could get to a - a critical care facility. Uh, if, uh, if a pregnant woman - There are - there are places not only in Alabama, but all across the country where a pregnant woman may have to drive an hour, hour and a half to see an OB-GYN, and if they have a problem with a pregnancy, it's an hour or an hour and a half to get to a - to a hospital. So we put in fifty billion dollars, uh, Every state got a hundred million of that. Then they could apply for grants. Alabama got two hundred and three million last year. They got two hundred and fourteen million this year. I'm very involved in - in how this money's gonna be spent. And one of the things that - that I'm - I'm pushing is mobile diagnostic units. It can go into rural areas because a - a blue-collar worker, an ag worker out in - in - in the rural parts of our country would t- have to take a - off a full day of work to drive into an area that has a - a full-service hospital to get an MRI or - or to get, uh, cancer screening, things like that. Uh, we're doing things that are - that are absolutely gonna be transformative for rural healthcare. It's historic. And I - I'll just point out with all due respect, every one of my Democratic colleagues voted against that. Every one of them. Uh, and every one of their states are getting this money. And I hope that they're engaging sensibly in how that money's gonna be spent. to - to provide health care to - to rural residents. I also want to go back to the CRAs and point out that, uh, what we're doing here is - is - is dealing with basically two very stringent rule amendments that were added to the waivers. Yeah, it - it - it doesn't overturn the long-standing rules. So, I think, uh, and I - and I will address one other thing about Washington mandates. Uh, like, we're trying to impose mandates on the states, and - and I'm hearing it from the same people who t- who tried to ban natural gas stove tops, natural gas h- hot water heaters, natural gas furnaces, and - and houses. I just hope there'll be a time in Congress when we can all sit down together and - and - and and not worry about who's gonna benefit politically, but bet- but worry about how we're helping the American people and how we're creating a b- a better future for our country. I think that's what we're trying to do. I mean, it's as though they want us to - uh, want people to believe that we're for dirty air or dirty water. Uh, our kids breathe the same air everybody else's kids do. They drink the same water, they play on the same playgrounds. So, I - I think what we're trying to do here makes sense. And again, i- i- it's - it's very frustrating to me to deal with regulations uh, that are being imposed on people when the technology to achieve the standards that they purport - purport to want to achieve cannot be achieved with existing technology. So I - I - I think, um, what we're trying to do here with these two resolutions are in keeping with with what is the proper role of Congress. And I'm not concerned about what the Senate parliamentarian might say. I mean, uh, that parliamentarian's the same one that - that - that, uh, ruled that - that under the inflation, so-called Inflation Reduction Act, they - they could, um, impose, uh, rules on greenhouse gases and then turn right around when a Republican bill went over to reverse that said that it didn't comply. So. There's a lot of inconsistency with the Parliamentarian and the Senate, and I don't think we should make our decisions based on what what that individual may or may not do.

Rep. Griffith (VA-9)1:03:38 – 1:03:59

And you might recall that uh the Parliamentarian, I don't know if it was the same individual, but the Parliamentarian ruled that it was appropriate during the uh debate on Obamacare to have cost sharing reduction in the bill, and then when we sent it over as a part of our package uh last year, they ruled it wasn't proper to be in a reconciliation bill. You recall that as well.

Rep. Palmer (AL-6)1:03:59 – 1:04:01

Yeah, well, there's a lot of inconsistencies.

Rep. Griffith (VA-9)1:04:01 – 1:04:19

Well, hopefully, look, I I I have I have worked with uh ranking member Pallone uh in all kinds of capacities. I know he wants to help us on all all these issues as well. Hopefully we can get through what I call the crazy season right in election time and elections in Virginia actually start on Friday uh the day

Rep. Palmer (AL-6)1:04:15 – 1:04:16

Mm-hmm.

Rep. Griffith (VA-9)1:04:19 – 1:04:28

after we leave here I'll be uh probably working the polls somewhere uh because the election will be open you can same day register you can go vote you can do it all, starting Friday.

Rep. McGovern (MA-2)1:04:28 – 1:04:29

Email in?

Rep. Griffith (VA-9)1:04:30 – 1:05:38

Uh, you can at this time, I don't encourage people to do that, cuz I'm concerned about it, but I hope that people will turn out and vote. Uh, and they can show up register same day. I mean, it's, but the election starts on Friday. And hopefully once we get through this, uh, crazy season on both sides of the aisle, we can do exactly what you wanna do, Mister Palmer, we can come back and we can talk about important things like mobile diagnostics, uh, more telemedicine, I mean, all of us are are for a lot of these things. And we can iron out these little differences once we get through the crazy season. And with that, I yield back and I thank the gentlemen for being present uh to testify before us today, and um uh look forward to continued discussions. And we have uh Mister Klein and Mister Raskin up next. There they are. Uh there's Klein.

Rep. Fischbach (MN-7)1:05:38 – 1:05:39

Raskin's in the hall.

Rep. Griffith (VA-9)1:05:40 – 1:05:40

Okay.

Rep. Fischbach (MN-7)1:05:40 – 1:05:46

I can't believe how many people are on the other end. So it's a good idea. I can't believe how many people are on the other end.

Rep. Griffith (VA-9)1:05:46 – 1:05:53

Do you ever hope to see a person who doesn't have a lot of money, Give them a sen- give them s- give them a second for somebody to find them and bring them on in. and you can just go and buy a bunch of stuff and just go and buy a bunch of stuff for that hardball?

Rep. Fischbach (MN-7)1:06:42 – 1:06:44

Hey, you know what? I want something to.

Rep. Griffith (VA-9)1:06:44 – 1:06:53

Yep. All right, I w- uh, now welcome our second panel, Representative Klein and Ranking Member Raskin from the House Committee on the Judiciary your full statements will be submitted for the record, and we ask.

Rep. Cline (VA-6)1:06:59 – 1:10:00

Thank you, Mr. Chairman. Uh, Mr. Chairman, Ranking Member, Governors, and members of the committee, thanks for the opportunity to testify. For too long, the American people have watched as criminal networks, sophisticated syndicates, and fraudulent actors have treated the federal judiciary like an unsecured bank vault. Every single year, billions of dollars intended for our nation's most vulnerable populations are stolen by fraudsters. In fact, the governor government accountability office estimates the federal government loses between two hundred and thirty three billion and five hundred and twenty one billion to fraud each year and this is not a victimless crime it's a massive ongoing tax on hardworking citizens each dollar stolen from the federal government through fraud is a dollar that does not go to legitimate beneficiaries like low income families and the elderly the explosion of fraud in recent years has exposed severe vulnerabilities within state administered federally funded programs The Trump administration has made it abundantly clear that rooting out waste, fraud, and abuse of taxpayer dollars is a top priority, and the legislative package before us today delivers the precise tools needed to fulfill that mission. In March, twenty twenty-six, through executive order fourteen three ninety-five, the president established a White House-led task force to eliminate fraud, charging federal agencies with establishing strict eligibility verification, improving audit controls, and expanding data sharing networks. Following that executive order, the Trump administration took direct action by establishing the National Fraud Enforcement Division within the Department of Justice. However, executive directives alone cannot ensure permanent protection. Congress must act. The legislative package before this committee builds on the Trump administration's historic groundwork to combat rampant fraud. It transforms temporary initiatives into durable, long-term legal mandates. By making the National Fraud Enforcement Division a permanent fixture inside the DOJ, H. R. ninety-five seventy-six ensures that a Senate-confirmed Assistant Attorney General will lead a highly coordinated nationalized effort to investigate and eliminate fraud networks. No longer will the DOJ's efforts be fractured across isolated units. H. R. ninety-five seventy-six establishes a cent centralized command structure. H. R. ten three twenty-six provides the necessary enforcement tools to back this newly created division by mandating information sharing between State agencies and Federal law enforcement by gi- giving the Attorney General the authority to request identity and benefit data from State administered programs such as Medicaid snap and unemployment compensation, we finally close the data blindness gap that criminals use to slip through the cracks. Importantly, the Proof Act balances this enhanced enforcement with ironclad encryption and data destruction protocols to ensure every law-abiding citizen's privacy is securely protected. Today, we are taking a definitive stand to protect the American taxpayer. This message from the Trump administration and this Congress is unified and unmistakable. The era the era of looking the other way on federal program fraud is over. We are deploying every tool at our disposal to defend the American taxpayer. Thank you, and I look forward to answering your questions.

Rep. Griffith (VA-9)1:10:01 – 1:10:04

Chairman Yates is back now. Uh, Ranking Member Raskin, you are recognized.

Rep. Raskin (MD-8)1:10:06 – 1:19:14

Mr. Chair, Mr. Ranking Member, distinguished members of the committee, we've been asked in this final week of the hundred and nineteenth Congress to discuss two bills that were alas never the subject of any committee hearings, never marked up in our committee and that we heard about for the first time late last week. Of these two bills, one I consider trivial, uh, but the other one is dangerous. As a gesture of good faith, uh, I'll vote to let the trivial one go, H R nine five seven six, which codifies the National Fraud Enforcement Division, which has already been established by regulation. The first burr version of this bill actually required the, uh, the division to do something to, quote, investigate, prosecute, and remedy, fraud, but even that modest generalized demand for administrative action was apparently too much and it was dropped from the bill. It's no wonder. This is the most pro-fraud administration in the history of our country. When the President, himself a thirty-fourth count convicted fraudster, took office, he fired and demoted twenty inspectors general who had rooted out billions of dollars in waste, corruption, fraud, and abuse. Trump bizarrely dismantled the parts of the government, seriously engaged in investigating and prosecuting fraud, like the Consumer Financial Protection Bureau, the Public Integrity Section, and the Tax Division at the Department of Justice. Amazingly, he halted enforcement of the Foreign Corrupt Practices Act, dropped over twenty-three thousand criminal investigations, including investigations into key crypto platforms like Coinbase, Gemini, and Kraken, and President Trump's indiscriminate pardoning of not just cop assaulters but convicted fraudsters has allowed these fraudsters to hold on to over one point seven billion dollars that they owed to their employees or investors or consumers and taxpayers that they had ripped off but had been ordered to pay back in restitution and fines. But if the majority thinks it important to freeze into place the name of the National Fraud Enforcement Division and DOJ, okay. Fine. That could be a useful rubric for a real Attorney General to investigate what Middle Eastern oil monarchies got in exchange for the billions of dollars they paid to the US Peace Envoy, Jared Kushner, or how Donald uh Trump Junior's uh clairvoyant success at investing in companies about to get hundreds of millions of taxpayer dollars has actually worked. The office could also investigate why Trump's DOJ is giving monopolists like Live Nation, Ticketmaster, a pass to continue gouging music fans. Or how the Maro Lago pool guy, who turned the reflecting pool into an algae farm, now popularly known as the Strait of Warm Ooze, landed a seventeen million dollar, taxpayer-funded, no-bid contract. But let's turn now to H. R. one O three two six, the so-called Proof Act, which, alas, has nothing to do with fighting fraud. It's about allowing the Department of Justice to accomplish what Doge was never quite able to pull off because of popular and judicial resistance and opposition, amassing all of our private personal data into a master comprehensive government database of every American who's ever applied for or used any federal program or benefit. Under this and previous presidents, DOJ has had the tools it needs to investigate and prosecute actual fraud using grand jury subpoenas against everything it needs, not just from State agencies but from banks, businesses and individuals. Earlier this year DOJ announced, for example, arrests, indictments and convictions in a variety of cases against fraudsters who sought to steal three hundred and forty million dollars from different government programs, claiming credit for several cases investigated and charged under the prior administration. But in any event, the point is, the capacity to go after fraud already exists. But this bill seeks to wipe out general statutory privacy protections that Congress has enacted for government programs and to force States to turn over massive amounts of citizen data without the government having to show an iota of evidence that there's any reasonable suspicion or probable cause, or anything else, that someone has committed a crime. Just vacuuming up our data. This is not the first time they've tried to assemble a master big brother database. You remember the ambitions of Doge and Elon Musk, President Trump's self-proclaimed best buddy. Doge stormed into the Social Security Administration in February last year, demanding access to the personal records of tens of millions of Americans. Federal judges have repeatedly blocked this assault. One judge who stopped Doge from accessing private data of Americans at the Department of Education, the Office of Personnel Management in the Treasury Department concluded that Doge operatives did not need this massive data in order to effectively fight waste and fraud and abuse. Of course, the real assignment for Musk was not to fight fraud but to create just such a comprehensive mass database of every American's information. Now Trump's DOJ is trying to do what Doge failed to do. Just like Doge, DOJ is losing in litigri litigation across America and so it's coming to Congress for a legislative charter they want you to vote for to obtain unfettered access to troves of our most sensitive data. Twenty-one States' Attorney Generals are fighting these demands for the personal data of every Snap applicant, whether or not there's suspicion of fraud. As the state agencies have made clear, the administration's demands violate multiple federal laws, including, of course, the Privacy Act. They create massive privacy risks and they could be used for a lot of dubious purposes including surveillance, harassment, and the persecution and demonization of individuals who lawfully apply for and receive government benefits. To be clear, States already share information necessary to investigate and prosecute fraud. But what Doge has been demanding and DOJ is now demanding is mandatory, automatic access to everybody's data, including tens of millions of Americans who are not and have never been suspected of fraud or any other crime. This administration has a history of using and disclosing highly sensitive personal information on an unauthorized basis. Here's one example. The administration improperly shared millions of Americans' Medicaid data with immigration officials. ICE then shared that data with the giant data and AI company Palantir. The administration tried to cover up this pr- this data theft, but a lawsuit by twenty state AGs brought it to light. Similar lawsuits have have revealed the administration is doing the same. in government program after government program. So the administration is going around the courts, trying to circumvent existing statutory protections for privacy, and wants us to force States to turn over Americans' personal data. The Proof Act would wipe out the privacy provisions protecting Americans' data across all government programs and put an end to all lawsuits, asserting these protections. All the programs listed and contemplated here, Social Security, Medicare, SNAP, TANF, Unemployment Insurance, FEMA, and Emergency Rental Assistance have specific provisions and procedures for combating fraud to require information sharing for anti-fraud purposes. They also include safeguards and firewalls that stand between our personal information and government bureaucrats who have no reason to see it. Now, you might not care much about the Federal Government trampling privacy in snap to conduct a fishing expedition for fraud in a, say, a State Health and Human Services program, but what about the next AG who comes along and demands all the data that a state licensing authority or a state police headquarters has about the state's gun owners from the police department searching for fraud in the gun industry. They don't need to show any probable cause or reasonable suspicion that any fraud is actually taking place. They just get to mop up the information. So think very carefully before you vote for this. The Proof-Act gives the government all of American's data with no firewalls, no protections, no oversight, and with no evidence justifying the need for such a massive snooping. That's not fraud enforcement. That's the architecture of a surveillance state, big brother in the age of artificial intelligence. They tried it with Doge. The courts stopped them. Even Trump-appointed judges told them they just didn't have the authority to amass and access Americans' private data when they haven't done anything wrong. But now, our friends want to barrel through this poorly drafted, privacy-destroying legislation without even allowing for a hearing or a mark-up. They invite us to surrender even more of our power and more of the rights of the people to this administration. We must say no thanks. I yield back and thank you for your attention.

Rep. Griffith (VA-9)1:19:15 – 1:19:20

Jim, I yield back now, recognize the Miss Fischbach for her time of questioning.

Rep. Fischbach (MN-7)1:19:20 – 1:20:02

Thank you very much, Mr. Chair, and and I I really am, um, on hr ninety five seventy six i'm very pleased that it is coming forward i'm a um it is uh authored by representative finstead from minnesota and um i'm a coauthor on that obviously i co-sponsor but obviously we um we we are experiencing incredible amounts of fraud and uh in minnesota and i i so i think it it's incredibly important to to this uh to codify this but um mister chair um with with president trump already having established the doj fraud division can you explain why this is still so important to do

Rep. Cline (VA-6)1:20:03 – 1:20:37

well thank you and this bill is so vitally important because it will shift uh the national fraud enforcement division from a temporary administrative policy into a permanent structural component of federal law enforcement and currently the division exists only because of the strong emphasis that the trump administration places on rooting out fraud. Uh, without codification by Congress, a future administration could theoretically dissolve the division with the stroke of a pen, returning fraud enforcement to its previous status, scattered across the criminal division and giving the green light to fraudsters.

Rep. Fischbach (MN-7)1:20:37 – 1:20:54

And and maybe you can expand just a little bit on, you know, how this division and, um, has or will in the future, you know, really establish a better collaboration across the federal government when it comes to identifying and uh countering some of those complex fraud schemes we've seen.

Rep. Cline (VA-6)1:20:55 – 1:21:20

Sure. And back in June when the House voted to codify an inspector general for fraud accountability and recovery within the treasury, uh Republicans and President Trump are actively working to not only identify fraud now but to ensure that the federal government has the infrastructure and authorities to identify fraud in the future and even stop it before it happens. Uh it's a it's a critical bill and uh I hope that the committee will s- find it favorable.

Rep. Fischbach (MN-7)1:21:21 – 1:22:34

Thank you very much. And and you know, it it it it should just be a given that we investigate and identify fraud, but what you need to do that is you need data and information from the programs where you suspect the fraud. Very difficult to actually uh actually uncover the fraud unless you have the data. And um and the earlier you get that data, the faster you can find and stop the fraud because that is something and and we can minimize the damage um however um and you know this the states control the data for state run programs even when those programs are funded by federal dollars and so we have to have their their cooperation and um obviously there's i think it was mentioned uh there's some um apprehension we hope to be polite um into giving us that information And maybe you can speak to some of the examples of where we've seen states uh have withheld data despite credible allegations of fraud. Um, for example, Minnesota's withholding of data on child care subsidies or SNAP information and maybe you can expand a little bit on on other states.

Rep. Cline (VA-6)1:22:34 – 1:24:32

Absolutely. You've hit on the exact reason why this legislation is so essential and your home state of Minnesota provides the textbook example of why the current system's broken. For months we've watched the Minnesota Department of Children, Youth and Families, under Governor Walz's administration, use bureaucratic red tape and state-level privacy loopholes to shield data from federal investigators despite credible allegations of multimillion dollar fraud. When the U. S. Department of Agriculture requested Snapdata to track massive identity theft rings following Operation Cold Snap in the Twin Cities, uh, the state refused, calling the r- request unprecedented. When the Department of Health and Human Services demanded attendance records to stop daycare centers, uh, the " leering" centers, as if you will, from billing for paper enrollment, the state dragged its feet until billions in federal funds had to be frozen. The answer to these standoffs cannot be years of litigation or freezing vital funds that innocent families rely on. And that's the important, uh, thing to remember here. These are, uh, for - for the instances of fraud, there are innocent families who are being affected. Um, the answer is this legislation, the bill takes away a state's abilities to hide the books. It explicitly mandates that when a US Attorney General issues a written request regarding a fraud investigation then it has to be an ongoing fraud investigation. The state must clear the pipeline and share the data. If this bill were already law, federal prosecutors wouldn't have needed to sue Minnesota in June just to look at snap records the National Fraud Detection Center would already have that data the fraudsters would be indicted and American taxpayers would be protected. And and I thank the gentlewoman for highlighting Minnesota's situation because it proves beyond a shadow of a doubt that voluntary state compliance is a failure we need statutory teeth and that's exactly what the Proof Act provides and we all need to remember as you stated we're talking about state administered programs using federal taxpayer funds thank you.

Rep. Fischbach (MN-7)1:24:31 – 1:24:59

Thank you very much. We have an absolute obligation to um to protect those taxpayer dollars. stop fraud um and uh and prosecute those that are found guilty and we need information to be able to do that and so clearly both of these bills to make sure that we have a permanent uh a permanent division that is looking at this but also we are able to get our hands on the kind of information that we need to prosecute so it's a clear-cut reason we need this bill

Rep. Cline (VA-6)1:24:57 – 1:24:57

Yes

Rep. Fischbach (MN-7)1:24:59 – 1:25:42

and many of the states have already shown that even when there are credible allegations of fraud or even ongoing prosecutions for related fraud in that state they will unreasonably withhold the data just like minnesota has uh to the states that have been willing to be transparent and provide data on areas of concern we are very happy that they are willing to help us protect those uh those taxpayer dollars because one dollar in fraud is too much and um but i appreciate you bringing it forward i i we need to make sure uh because the the amounts in Minnesota are staggering and, like I said, one dollar is too much and so I look forward to this bill passing, and thank you very much for bringing it forward. I yield back.

Rep. Foxx (NC-5)1:25:44 – 1:25:46

Thank you, Miss Fishbaugh. Mister McGovern, you're recognized.

Rep. McGovern (MA-2)1:25:46 – 1:27:26

Well, uh, thank you. You know, I, um, I find it rich, uh, to hear Republicans talk about fraud and corruption. Um, I look at this White House, uh, pardoning Medicare fraudsters, not a peep. Um, we voted overwhelmingly to release the Epstein files. can't get them all released not a not a peep of protest from anybody on that side um we just learned that donald trump junior had his wedding paid for by a russian oligarch close to putin i mean i can you imagine if hunter biden did that this place would erupt and the the capital dome would explode with all of your protestation not a word um you know all the sweetheart deals moving forward on on uh arc to trump and uh a uh a ballroom without even proper legal authority and we don't even know where all the money is coming from um it's it's it's it's ridiculous and on these bills here i mean i i guess my thing is i mean i i'm sorry when when i when i'm home people are talking about the fact they can't afford the groceries they can't afford to gas you know healthcare is too expensive um and this is the and this is the last week this and then you guys decided to adjourn two weeks early uh and this is it i mean so i i wanna associate myself with the remarks of mr. raskin uh in terms of where i come down on these bills but but since we're running out of time i mean and we we're not gonna be talking about a lot of you know other issues that quite frankly are important i i i do mr. klein wanna wanna raise an issue to you i i i watched some of the the trumpapalooza whatever the midterm uh political convention that you guys did i don't know how many of you i don't know did you go to that

Rep. Cline (VA-6)1:27:28 – 1:27:30

i i was not able to attend i had prior engagements

Rep. McGovern (MA-2)1:27:29 – 1:28:16

right well yeah well but last week the president promised every american adult five thousand dollars but only if republicans win the house and senate in november he said and i quote because of our tremendous strength and success economically i will issue a dividend to every adult citizen in the united states of america for five thousand dollars it will be called the trump dividend now uh all we have to do is win end quote so given that that this is a massive economic policy we're told at a cost of one point two or one point three trillion dollars um it's you know it has huge fiscal fiscal consequences for our nation i'm just trying to get a sense from my republican colleagues uh you know uh you know whether they support this or not i mean a simple yes or no do you support giving out five thousand dollar checks as the president announced

Rep. Cline (VA-6)1:28:17 – 1:28:30

my understanding mr. chairman is madam chair is that uh the speaker has indicated we wanna look at that and make see whether it's possible to uh uh to accommodate that

Rep. McGovern (MA-2)1:28:30 – 1:28:31

ok well

Rep. Cline (VA-6)1:28:31 – 1:28:44

because because right now what we see are american families struggling uh in large part because of uh the inflation that was a result of the last administration and so

Rep. McGovern (MA-2)1:28:44 – 1:28:59

well i'm asking you whether you support this or not and by the way inflation when um this president took uh over was three percent it's now three point four percent which i think is under counted uh but nonetheless it's going in the wrong direction but uh but do you support this you support these five thousand dollar checks

Rep. Cline (VA-6)1:28:59 – 1:29:03

uh i support giving to taxpayers relief and so looking at all ways to

Rep. McGovern (MA-2)1:29:01 – 1:29:04

what's that what's that a yes is so that's a yes

Rep. Cline (VA-6)1:29:04 – 1:29:05

provide that relief

Rep. McGovern (MA-2)1:29:05 – 1:29:56

ok well the my next question is in twenty twenty five trump promised everyone five thousand five thousand dollar doge dividend checks which never happened alright you all agree on that just never happened then last november he promised two thousand dollar tariff dividends That that never happened. I think we can all agree that that never happened. Now we're back to five thousand dollar checks for everybody. And this time the promise is explicitly linked to Republicans winning control of the House. So former Republican Congressman Bob Good called Trump's plan a, quote, " socialist vote-buying scheme", end quote. Our colleague Ralph Norman, and Ralph and I, I mean, we don't agree, I we I don't think we could agree on the correct time, but we do agree on this. He said, tying government checks to the outcome of an election starts to starts to sound like pay to play politics do you agree with mister norman

Rep. Cline (VA-6)1:29:57 – 1:30:16

i don't think anyone's suggesting that uh there's a play to pay to play politics uh issue here i think what we're talking about is trying to address the challenges facing working families uh created in large part by the last administration whether it's the green new deal or whether it's the tax hikes that they wanted to

Rep. McGovern (MA-2)1:30:12 – 1:30:33

well well well ralph is great yeah he's ralph ralph ralph ralph norman is the one i'm i'm quoting him quote, tying government checks to the outcome of an election starts to sound like pay to play politics, end quote. He's a Republican. Um, and I think he's responding to the fact that Donald Trump is saying, you'll get these five thousand dollar checks only if Republicans win. So I don't I don't know, what do you call that?

Rep. Raskin (MD-8)1:30:34 – 1:30:35

I think that

Rep. McGovern (MA-2)1:30:34 – 1:30:36

Is is this Raskin, what do you call it? I think

Rep. Raskin (MD-8)1:30:36 – 1:30:37

Political bribery?

Rep. McGovern (MA-2)1:30:37 – 1:30:37

Yeah, I mean

Rep. Raskin (MD-8)1:30:37 – 1:30:44

Put it this way, if that's not the plan, our our friends control the House, the Senate and the White House right now, why don't they pass it this week?

Rep. McGovern (MA-2)1:30:44 – 1:31:10

Well, well that, well well that, well that brings me to the next question is, the president has has suggested he can give out these checks without congressional action but i listened to speaker johnson on sunday on cnn uh and he said that that's not true that the payments would require congressional approval um and could add more than one trillion dollars to the national debt mr. klein in your opinion does the president need congressional approval to issue these checks or not

Rep. Cline (VA-6)1:31:11 – 1:31:23

i'm not aware of the statute that would authorize the president to issue those unilaterally without congressional action but i think congress should uh consider ways in which we can provide that relief

Rep. McGovern (MA-2)1:31:22 – 1:31:23

yeah

Rep. Cline (VA-6)1:31:23 – 1:31:24

to the american people

Rep. McGovern (MA-2)1:31:24 – 1:31:47

so if you guys all think it's a good idea then why aren't we meeting on that as opposed to this i mean i'm just i'm just like i mean you know why why you know why is of the this this promise of a five thousand dollar check if congress has the authority uh to to do this what you know why i you guys control the house the senate the the white house

Rep. Cline (VA-6)1:31:46 – 1:31:47

madam chair

Rep. McGovern (MA-2)1:31:47 – 1:31:48

the supreme court

Rep. Cline (VA-6)1:31:48 – 1:31:55

i'm here uh in my capacity on the judiciary committee but i also sit on appropriations i can tell you that the appropriations committee would like to

Rep. McGovern (MA-2)1:31:52 – 1:31:52

yeah

Rep. Cline (VA-6)1:31:55 – 1:32:06

have a discussion about that and how uh we can provide relief and i know that ways and means continues to work to provide taxpayer relief as we did last year three thousand dollars

Rep. McGovern (MA-2)1:32:05 – 1:32:05

yeah

Rep. Cline (VA-6)1:32:06 – 1:32:10

per american uh in the form of tax relief so we want to continue to do that

Rep. McGovern (MA-2)1:32:09 – 1:34:27

yeah and and and by the way the the cost of the tariffs on the has basically wiped out any benefit that regular people get. But, I wanna, I'm gonna say this, I ju- I just wanna, I wanna make this point. This new promise to hand out five thousand dollar checks to every American, I think we all know is never gonna happen, just like some of his other promises. And I think it's cruel. I think it's really cruel. People are struggling. And I bet some families may hear the President promise them five thousand dollars and then actually plan around that money. Because they would like to think the President is actually speaking the truth. You know, maybe they're now planning to get that medical procedure that they otherwise could not afford or or or believe they will finally be able to pay off their credit card and have enough uh food to feed their family next month. It is wrong to make promises like that and when it's conditioned on the outcome of an election, I think it is outrageous and I think it is corrupt. And I I just I you know I I again I'll and I'll I'll end with this. I mean I I said this in my in my opening statement. I mean you guys just gave away two weeks of session um and i don't know about your constituents but my constituents you know i mean they they're wondering why we're not focusing on the issue of affordability which this president says is a hoax but if he goes to any district in this country red or blue or purple affordability is a real issue is a real issue for people people can't afford their groceries people can't afford their gas farmers are getting screwed over cause they're paying more in in diesel costs i mean everything is going up there's no end in sight and rather than talking about any of that i mean i'm looking at all the stuff we're bringing before us today none of it will impact the american people for the better and i i just i just i i point that out because we're we're we're we're blowing an opportunity here um we have an opportunity maybe to come together on some things you don't have to agree on everything to agree on something maybe there's some there's a few somethings we can agree on that will actually have a positive impact uh, on, on, on people's pocketbooks. And I just I just I just find this all very, very frustrating, and I appreciate both of you being here, but I, again, I wish we were talking about something else, something that I could go home and tell my constituents that would actually make a difference in their lives. But, um, I did I do, gentlemen want to add something?

Rep. Raskin (MD-8)1:34:26 – 1:35:11

Just you you made the point, um, that, Mister McGovern, that this was a false promise to the American people, but it's not the first one along these lines. He promised a five thousand dollar doge dividend and he promised a two thousand dollar tariff dividend. So we're already seven thousand dollars behind. Meantime, um, the reckless spending of this administration have taken us, uh, has taken us over forty trillion dollars in national debt, one more than one quarter of which was added just by President Trump himself in his administration. So, if he were actually to follow through on this promise, and we understand he has no intention to, that would add another one point three trillion dollars to the national debt that he's already contributed eleven trillion dollars to.

Rep. McGovern (MA-2)1:35:11 – 1:35:17

Yeah. Well, let me just finally say, Mister Klein, is it appropriate or is there is do you have a timeline when you would like these checks to go out?

Rep. Cline (VA-6)1:35:18 – 1:35:21

I think that's gonna be a conversation for leadership and with the administration.

Rep. McGovern (MA-2)1:35:22 – 1:35:26

All right. Um, I thank the witnesses and I yield back.

Rep. Foxx (NC-5)1:35:27 – 1:35:30

Thank you, Mister McGover. Mister Scott, you're recognized.

Rep. Scott (GA-8)1:35:30 – 1:38:45

Mm, but Madam Chair, I mean, that's amazing that someone who voted for the American Rescue Plan and the Inflo- and the Inflation Reduction Act as y'all called it would refer to the reckless spending when uh when we would love to cut spending but you know since we don't have sixty votes in the senate um we haven't been able to get the votes to cut spending and obviously uh if you cut spending then you wouldn't have the inflation that you have in in this country and and everybody would be a lot better off like they would be better off if we built more refineries and uh and the democratic party had not killed the keystone pipeline as a cheap political stunt uh, that became very, very expensive for the American citizens. But I would have thought, because my, my constituents, they talk to me about health care, they talk to me about food, they talk to me about gas, um, but I will tell you, fraud is also in all of those conversations. And where I come from, the amount of fraud that is happening, especially with our seniors and uh, some other people is baffling to me. They get a text message that originates in a prison system sometimes, or from overseas sometimes, and then they go take money out of their bank account, and they put it in a crypto ATM. Why crypto ATMs still exist in this country is baffling to me. And the next thing you know, it doesn't, it doesn't matter what the price of groceries and gas is, because some fraudster has taken everything they had. Taken everything they had. And I would have actually thought that if there was anything that we could come together on would be just to say that fraud's bad. But they hate Donald Trump so bad they won't even support pieces of legislation that work to get rid of the fraud in the system. And I I I don't understand that. But I wanna ask you this. Because w- I I wanna bring this to your attention. And um, I'ma read a little bit of this article, it's a it's a little old. But the headline is " Man, eighty-three, tricked by scammers, gets twenty-one years to life for killing Uber driver." "Scammer's on the phone had threatened to kill William J. Brock if he didn't hand over twelve thousand dollars just as Lolita Tolenthal and Uber driver came to his house to pick up a package." Have you all heard of this? You've Have you all heard this? Uh, on the morning of March Twenty fifth, twenty twenty four, an unsuspecting Uber driver named Lolita Tolan Hall drove to a house near Columbus, Ohio to pick up a package. She had no idea that the eighty-one year old man who lived there had just received a series of phone calls from scammers who threatened to kill him if he did not give the woman coming to his house twelve thousand in cash. Miss Tolan Hall, sixty-one, came to the door with a man, William J. Brock, confronted her at gunpoint and then shot her six times, killing her. I'm not aware of the people who committed that fraud or that scam that led to her death and him being in prison, ever being prosecuted. And, and, and my que- my question for you is this. I mean, th- this bill is focused around government fraud, correct?

Rep. Cline (VA-6)1:38:46 – 1:38:47

Correct. That's correct.

Rep. Scott (GA-8)1:38:47 – 1:39:06

What is the Justice Department doing about the scams that are occurring? In this case it led to the death of a lady. Now, now the gentleman pulled the trigger But the person who committed the murder was the person who defrauded both of them. What is the Justice Department doing about this?

Rep. Cline (VA-6)1:39:06 – 1:39:07

I I think

Rep. Scott (GA-8)1:39:07 – 1:39:08

Because I don't think they're doing anything.

Rep. Cline (VA-6)1:39:09 – 1:39:10

I think, yeah.

Rep. Scott (GA-8)1:39:09 – 1:39:12

I don't think they're doing enough, and I want to be very clear about that.

Rep. Cline (VA-6)1:39:13 – 1:39:44

Uh, Madam Chair, I think the gentleman's exactly right. I think that resources are being diverted to combating uh, fraud across several different agencies and across several different divisions. And by consolidating the governmental fraud, fraud investigatory functions into a specific agency and then providing them with the tools necessary you're going to be able to save taxpayer dollars and ensure that resources that can be devoted to investigating cases like the one that you described can occur and people are brought to justice.

Rep. Scott (GA-8)1:39:45 – 1:40:25

Seniors in my state who worked their whole life may have twenty or thir- thirty thousand dollars in savings. And when some fraudster gets that twenty or thirty thousand dollars in savings it's not enough for the FBI or the federal government to deal with. They just don't want this. They're gonna they're they're interested in the bigger cases. That's the bottom line. But your local DAs can't do anything about it. They don't have the resources that the local sheriff's department can do anything about. So I'm I'm not opposed to the legislation you've got. I think it's a good piece, but I want the Justice Department to answer what are they doing about the fraud on America's senior citizens.

Rep. Cline (VA-6)1:40:27 – 1:41:03

Miss Madam Chair, I would concur with the gentleman, I think that the more cooperation you have, the more support that the Department of Justice can give to local and state law enforcement agencies to combat the kind of fraud that you're describing. Uh, the more we are able to help the seniors you're you're talking about, I they are uh being targeted and the Department of Justice needs to be able to devote those resources to assisting States, because you're right, they don't have the resources that they need at the state and local level. They need the Department of Justice's help and this bill will help them get there.

Rep. Scott (GA-8)1:41:02 – 1:41:06

So, a tremendous amount of this fraud occurs out of the prison systems in the United States.

Rep. Cline (VA-6)1:41:06 – 1:41:06

Mm-hmm.

Rep. Scott (GA-8)1:41:06 – 1:41:11

So we could shut down cell service in the prison systems in the United States for America, and we could stop a lot of it.

Rep. Cline (VA-6)1:41:12 – 1:41:20

I'm, I commend the gentleman for his, uh, creative thinking and I think that, uh, we need to come up with ways to stop the fraud coming out of the prisons.

Rep. Scott (GA-8)1:41:20 – 1:41:21

I do too.

Rep. Cline (VA-6)1:41:20 – 1:41:21

I agree.

Rep. Scott (GA-8)1:41:21 – 1:42:12

I mean, you you've got a good bill. I mean, I'm I'm not surprised that the Democratic Party hates Trump so bad that they're not gonna vote for this because they blame him for everything. But I I will tell you, this issue of fraud, especially against our senior citizens, uh the theft of government resources that could go to uh supporting the Social Security Trust Fund and and other people who who need the resources or who the resource is designed for, we we that this bill should pass the floor unanimously. And then another one should pass the floor that would actually, you know, help the individual citizens as they're defrauded. We need to go get that money back. It's ended up in foreign banks and foreign countries. Uh, we need to shut down crypto ATMs in this country. There are a lot of things that we could do to help the American citizens. If the Democratic Party didn't hate Donald Trump so bad that they didn't just oppose anything that he was willing to sign with that, I yield.

Rep. Foxx (NC-5)1:42:14 – 1:42:16

Thank you. Miss Gendlin, you're recognized.

Rep. Scanlon (PA-5)1:42:17 – 1:46:23

Thank you, Madam Chair. Look, no one on this committee disputes that fraud should be investigated, prosecuted, repaid when anyone, no matter who, steals taxpayer dollars or defrauds American families, they should be held accountable. Um, and I would agree with my colleague that one of the most despicable forms of fraud is those forms which defraud the taxpayers of Medicare and Medicaid dollars, um, which then impact seniors. But of course, Um, that leadership starts from the top. So, so we have seen cases where Philippe, uh, uh, Esforms was a nursing home and assisted living owner who was convicted of a massive Medicare and Medicaid fraud scheme. Over a billion dollars in taxpayer money was diverted. Um, Joseph Schwartz, another nursing home fraud scheme with millions, thirty-nine million dollars, he was convicted of Medicaid fraud. and tax fraud. Uh, Lawrence Duran, a health care executive who had a two hundred and five million dollar Medicare fraud scheme. Um, all of these folks were convicted of defrauding the government and all of them were pardoned by President Trump after they defrauded our taxpayers of billions of dollars, and they also impacted the, uh, seniors who were dependent on those. those services. So, if my Republican colleagues are serious about fighting fraud, I don't think that creating another office or program in the Trump Department of Justice is going to address this bigger problem. The administration has spent the last year and a half systematically dismantling the Department of Justice, its independence and its integrity. Trump and his appointees have pushed out career pro- prosecutors. fired ethics officials, they've weakened internal watchdogs, they've dismantled safeguards that were specifically created to prevent political interference and abuses of prosecutorial power and to protect personal privacy. And while congressional Republicans are talking about cracking down on fraud, this Justice Department has actually been pulling back from prosecuting corporate crime, corporate investigations and prosecutions have all but ground to a halt under this administration. And as mentioned, at the same time, this president has issued pardons to more than seventy people convicted of fraud and financial crimes, including health care fraud, tax evasion, financial conspiracy, bank and cryptocurrency fraud, wire fraud and money laundering. And not only has the president excused these criminals' convictions, He's also excused their obligation to repay over one point seven billion dollars in fines and restitution to taxpayers, American families, businesses, and seniors. So, forgive me if I'm skeptical that giving the Trump Justice Department another division is going to solve the problem at hand. Fighting fraud requires leadership from the top, and it requires investigators and prosecutors who won't change their approach based on how connected the fraudster is, or won't knuckle under if the president decides to pardon everybody. It requires a Department of Justice that is both independent and has a sense of duty to Americans rather than to any one person. So, if we wanna strengthen fraud enforcement, we should restore the independence, expertise and accountability at the Department of Justice rather than engage in more performative uh legislation. Mister Raskin, you have led the judiciary col- our judiciary colleagues in investigating and reporting on the billions of dollars in fraudsters, fines, and restitution. Can you just tell us a little bit about that and where people can find that information?

Rep. Raskin (MD-8)1:46:23 – 1:46:29

The the name of our report is called Pardon Zinc, and that's the House Judiciary Democrats.

Rep. Scanlon (PA-5)1:46:29 – 1:46:29

Mm-hmm.

Rep. Raskin (MD-8)1:46:29 – 1:46:43

And it is uh I think a fifteen or twenty page report. both explaining how one point seven billion dollars that was supposed to be paid back to the victims of fraud, the victims of crime,

Rep. Scanlon (PA-5)1:46:43 – 1:46:43

And the taxpayers.

Rep. Raskin (MD-8)1:46:44 – 1:46:45

and the taxpayers.

Rep. Scanlon (PA-5)1:46:45 – 1:46:45

Mm-hmm.

Rep. Raskin (MD-8)1:46:45 – 1:48:09

So we are talking about both direct restitution of victims and fines to the government, were forgiven by President Trump. It's got nothing to do with people hating Donald Trump. I've never met him and so I don't stand to love him or hate him, but the policies are seriously damaging people in America. I'm sorry, Mister Scott had to go, because I would invite him to join the bipartisan stop scams caucus, because way too many of us in Congress have constituents who have suffered the exact same fate that his have. We should get rid of those, um, ATM machines for crypto in supermarkets preying on older people. But it's precisely the crypto investigations that the Trump Administration's Department of Justice killed when they got into office, case after case all of these people being pardoned. Meantime, President Trump makes more than two billion dollars on crypto while he's supposed to be acting as President of the United States in his first year. That's more money than every other President in American history combined, made privately and publicly. It's more money than those of us in Congress, in the House and the Senate, together making our official salaries in the entire a hundred and nineteenth Congress. And I'm sorry, it's not a question of my personal feelings about him, it's that the priorities of this administration are utterly warped i'll give you another example and you can find it in the report of a guy named trevor milton

Rep. Scanlon (PA-5)1:48:09 – 1:48:10

hmm

Rep. Raskin (MD-8)1:48:09 – 1:48:55

so he created what he said was a uh a a zero uh uh a zero net emissions truck but it was fraudulent it didn't really work and he bilked hundreds of millions of dollars out of investors so the department of justice made a case they had to prove beyond a reasonable doubt that he did it They went to court, a jury of his peers found him guilty, he was convicted, and he was about to be sent off to federal prison for four and a half years. Ah, but one thing, President Trump pardoned him because he sent his mother to go to some fundraisers down at Mar-a-Lago. And so now, how much money, um, is not going in restitution and fines to Trevor Milton's victims? Six hundred and ninety-five million dollars

Rep. Scanlon (PA-5)1:48:55 – 1:48:55

Mm-hmm.

Rep. Raskin (MD-8)1:48:55 – 1:49:32

that he was gonna have to disgorge himself of. And now he doesn't have to disgorge himself of it, and he doesn't have to pay people back. We can give you case after case, Devon Archer, Jason Galanis, they've made, there's a article I think in, well the sixty minutes had a report on it last night, pay to play pardons, cash for clemency. Um, there's articles throughout the press on this. This is the real fraud that's taking place. So I I feel the gentleman's pain when he says, well what about people who are just getting ripped off thirty thousand dollars, forty thousand dollars, those are precisely the people that they're letting off en masse, by not even bringing investigations and prosecutions against crypto anymore.

Rep. Scanlon (PA-5)1:49:33 – 1:49:44

I I appreciate that and it is very frustrating we do expect leadership from the top, and we certainly aren't seeing it with respect to holding fraudsters accountable, including those who are ripping off taxpayers.

Rep. Raskin (MD-8)1:49:44 – 1:49:52

May maybe some people love Donald Trump too much to engage in bipartisan action to stop all the fraud and all of the corruption that's taking place.

Rep. Scanlon (PA-5)1:49:52 – 1:50:04

Before I yield back, can you just speak for a moment to what's happened at the Department of Justice and how what is currently going on there has undermined its ability to um investigate and pursue fraud

Rep. Raskin (MD-8)1:50:03 – 1:50:50

well they said they would not um implement uh and enforce the foreign corrupt practices act uh they dismantled the public integrity section which is exactly what it sounds like and they have dismantled the consumer financial protection bureau which has saved americans tens of billions of dollars precisely from the fraudsters and scampsters and corrupt forces that we're talking about. Check out the Wall Street Journal, which in July had an article about how the DOJ is pulling back on prosecutions of corporate fraud and crime. I mean, the story is there to be told. That's the reality of what's happening. The whole country is getting ripped off at this point, and all we're seeing from the administration is more plunder and more corruption.

Rep. Scanlon (PA-5)1:50:50 – 1:50:53

Thank you. I appreciate your testimony and I yield back.

Rep. Foxx (NC-5)1:50:55 – 1:50:57

Thank you, Miss Gendlin. Mister Jack, you're recognized.

Rep. Jack (GA-3)1:50:57 – 1:51:19

Thank you, Madam Chair. To uh my colleague from Virginia, Mister Klein. I'm curious, could you uh clarify for us as we look to this week and we draw a contrast, and we look at the voting board, um when these bills come up for final final vote, could you clarify for us what are we voting for, what are what are Democrats voting against if they don't join us on this specific vote?

Rep. Cline (VA-6)1:51:20 – 1:52:49

I thank the gentleman for the question. I hope that Jun- uh, the Democrats do join us, uh, in supporting this legislation, not just the bill that, uh, my colleague, Mister Raskin, said he supports, which establishes a centralized command structure within DOJ for combating fraud, uh, of government agencies and stealing taxpayer dollars from citizens, uh, but also the legislation that would help to, uh, provide the enforcement tools to back this newly created division by mandating information sharing between state agencies and federal law enforcement. Uh, when billions of dollars are stolen from programs like Medicaid, like SNAP, like unemployment insurance, it it doesn't just strain uh federal taxpayers, it strains state and federal budgets as well. Now, when we see what's going on in Minnesota, this massive financial drain leads to higher deficits, increased pressure on tax revenues, stricter eligibility rules that harm everyday Americans who genera- genuinely need assistance. the very people that we're talking about here are hard-working Americans who are seeing uh their tax dollars uh go towards payments that are fraudulent. And we want to be able to use their tax dollars uh for the purposes that they are meant for in DOJ to prosecute these uh fraudsters and bring them to full uh accountability. And so uh eliminating systemic fraud will ensure that every dollar collected from taxpayers goes towards its intended purpose and that's what we will be voting on this week.

Rep. Jack (GA-3)1:52:50 – 1:52:53

Well, mindful of our time, Madam Chair, and knowing another panel awaits, I will yield back.

Rep. Foxx (NC-5)1:52:55 – 1:52:57

Thank you, Mister Jack. Mister Ledger Fernandez, you're recognized.

Rep. Leger Fernandez (NM-3)1:52:58 – 1:53:24

Uh, thank you very much. Uh, so, uh, uh, we we just heard, uh, a list of all of the portents that, uh, the president has granted. And the fact that millions upon millions never went back to the people who had been defrauded right and uh just so that you i'm i'm sure you're aware of these pardons correct

Rep. Cline (VA-6)1:53:25 – 1:53:28

uh i am aware of some of them

Rep. Leger Fernandez (NM-3)1:53:28 – 1:53:43

uh you uh i'll enter into the record a march nineteenth twenty twenty six article titled trump vowed to crack down on fosters but he's pardoned dozens um and so that have you seen this article

Rep. Cline (VA-6)1:53:43 – 1:53:43

have not

Rep. Leger Fernandez (NM-3)1:53:44 – 1:53:46

yeah But you're aware that there is a controversy.

Rep. Foxx (NC-5)1:53:45 – 1:53:46

Without objection.

Rep. Leger Fernandez (NM-3)1:53:47 – 1:53:51

Thank you so much, Madam Chair. I appreciate it. But you're aware there's a controversy over the pardons.

Rep. Cline (VA-6)1:53:51 – 1:53:58

I'll I'll be happy to take a look at the article. And I'm aware that Democrats have been talking about the president's pardons for

Rep. Leger Fernandez (NM-3)1:53:54 – 1:53:59

So are you aware Oh, the Democrats have been talking about this.

Rep. Cline (VA-6)1:53:58 – 1:53:59

many, many months.

Rep. Leger Fernandez (NM-3)1:53:59 – 1:54:16

So, as a member of the judiciary, are you telling me that you are not aware of the number of pardons that this president has been given to people who've defrauded? medicare medicaid have you you don't care about these issues

Rep. Cline (VA-6)1:54:16 – 1:54:38

i appreciate the question and i am aware and we are uh looking at all of the president's actions because this is a co-equal branch of government but i would say that the pardon power is a uh purely executive power that he has exercised and uh he is it is within his power to exercise it in the way that he decides

Rep. Leger Fernandez (NM-3)1:54:38 – 1:55:01

right so do you think that uh for any president let's leave this particular president who has uh pardoned lots of fraudsters do you think a president should be required to let us know why he has pardoned whether he's received any money uh in exchange for that pardon do you think that that would be a reasonable expectation that for the american public to have

Rep. Cline (VA-6)1:55:01 – 1:55:08

uh madam chair i know that the courts have established that the pardon power is a very broad power granted to the executive branch

Rep. Leger Fernandez (NM-3)1:55:07 – 1:55:20

but the question is do you think it would be good for the american people to know whether a president has received directly or indirectly any money tied to that party

Rep. Cline (VA-6)1:55:21 – 1:55:35

well i don't believe that's uh the case and i don't believe that uh that's alleged but i do believe that the maximum amount of transparency that's provided to the american citizens is the best way to proceed so

Rep. Leger Fernandez (NM-3)1:55:34 – 1:55:39

but i i i mean is that the case and has it just been alleged rank and member

Rep. Raskin (MD-8)1:55:40 – 1:57:19

Well, if you check out yesterday's sixty minutes, which the whole country is talking about, they have on tape people basically saying, well, this pardon will cost you three hundred thousand dollars and this one may cost you six hundred thousand, and so on. They went undercover to do this. I mean, it's an open secret now that it is a pay-to-play system. They've put it up for sale. Uh, prior to President Trump, every other president in our lifetimes had adhered to a more than century-old tradition of the Department of Justice having a U. S. pardon attorney who would actually examine the particular facts of a case, what other crimes had the person been convicted of, how did they behave when they were in prison, have they shown contrition, have they shown remorse, are they ready to rebound with society? But you saw the first act of the President was to pardon more than fifteen hundred uh criminals who were foot soldiers in his private militia when they came to attack us in Congress to storm the Capitol to chant hang Mike Pence to try to overthrow a presidential election result, and by pardoning them, dozens of those people have gone out and re-offended. One of the guys, Andrew Paul Johnson, went and sexually attacked two twelve year old children, sexually assaulting and raping two, oh, a twelve year old boy and a twelve year old girl, and he's now been sentenced again to go to prison for life, which is fair for what he did, but it never would have happened had President Trump not pardoned them. But did they have turned this either into a system of ideological favoritism, oh you're on our side, we like the crime you committed assaulting police officers on January sixth, or you're putting enough money into our campaigns and our businesses that we're going to make it happen for you.

Rep. Leger Fernandez (NM-3)1:57:19 – 1:57:40

Right, and and in some strange way, the fact that he pardoned all those January sixth insurrectionists who beat who beat the Capitol Police that we see every day. And that's the one that gets me, is we walk and talk and say hello to those Capitol Police, a hundred and forty people win police officers win

Rep. Raskin (MD-8)1:57:40 – 1:57:43

well some of them can no longer be on the police force

Rep. Leger Fernandez (NM-3)1:57:42 – 1:57:50

and they can't be right they can't be right but then at least in those instances we know it's because he believed in his you know his his

Rep. Raskin (MD-8)1:57:43 – 1:57:45

some of them are are too disabled

Rep. Leger Fernandez (NM-3)1:57:50 – 1:58:30

wild dream of i won the election which he didn't but these other ones this fraud these these pardons of fraud and then to have these bills that talk about fraud i you know i i've started calling it gold-colored corruption Right, 'cause we kind of know uh blue-collar crime, white-collar crime, but we are dealing with gold-colored corruption. But the amount of corruption that we are seeing by this administration, the billions that the President is making off of this presidency is something we've never ever seen before. Has there ever been an instance where a President has made billions off of his presidency profits?

Rep. Raskin (MD-8)1:58:30 – 1:59:22

I'll tell you a story, Ms. Legere-Fernandez, President Lincoln in the middle of the Civil War got these beautiful elephant tusks that he loved from the King of Siam and he'd never kept a gift before. And he wrote to Congress and he said, " Can I keep these elephant tusks? I'd really like to have them." And they wrote back a letter and they said, " You're doing a great job in the war, in the Civil War, honest Abe, but no, you can't keep them. Turn those over immediately to the Secretary of State." Now compare that to a President who's taking hundreds of millions of dollars from foreign princes and kings and governments as well as making money through crypt crypto and so on. We've never seen anything like it. And the one thing I would take issue with is, the suggestion that, well, January sixth was a little bit different. It wasn't different. January sixth was an attempt for him to stay in office so he could keep the grift going. And he was willing to resort to violence and to subversion of the election, again, which we had never seen before once in American history.

Rep. Leger Fernandez (NM-3)1:59:23 – 1:59:35

Right. And, and I think that the, the, we've been the other thing that we've been, uh, hearing about is the fact that there has been these gifts. Uh, Donald Trump Junior's wedding was secretly

Rep. Cline (VA-6)1:59:43 – 1:59:44

i i'm not aware of that

Rep. Leger Fernandez (NM-3)1:59:44 – 1:59:52

oh so you seem to be maintaining a good sort of like i don't see i don't hear i don't need to talk about it is amazing but these are

Rep. Raskin (MD-8)1:59:52 – 1:59:53

in fairness he's got a tough election

Rep. Leger Fernandez (NM-3)1:59:53 – 1:59:55

wait wait these are these are

Rep. Cline (VA-6)1:59:54 – 2:00:00

i i i'm i'm here i'm very focused on defrauding the taxpayers of this country by people in

Rep. Foxx (NC-5)1:59:55 – 1:59:55

he's a

Rep. Cline (VA-6)2:00:00 – 2:00:05

minnesota who uh need to be investigated and prosecuted by a department of justice that needs

Rep. Leger Fernandez (NM-3)2:00:06 – 2:00:07

In Minnesota,

Rep. Cline (VA-6)2:00:07 – 2:00:08

They still wouldn't provide.

Rep. Leger Fernandez (NM-3)2:00:07 – 2:00:18

you don't know much about what's happening in Washington, D. C., where we are seeing millions upon millions of dollars, uh, in terms of fraud and fraudulent activity.

Rep. Cline (VA-6)2:00:18 – 2:00:19

It's na- it's a national problem.

Rep. Raskin (MD-8)2:00:20 – 2:00:22

I I just want to say this.

Rep. Leger Fernandez (NM-3)2:00:20 – 2:00:21

Ranking member.

Rep. Raskin (MD-8)2:00:22 – 2:02:31

The, uh, to get back to the legislation at hand, the gentleman said this is about getting the government the enforcement tools it needs to police fraud. But they've not offered a single example of one case or fraud where they couldn't get the evidence that they needed in order to prosecute someone. They gave some examples of, well, the government demanded, you know, unlimited information from this state agency about everybody who ever had been in the door and had petitioned for benefits, or what have you. That's different because the that's why the courts are striking those kinds of uh attempts to appropriate information down, because it's gotta be based on something, maybe not probable cause, but at least reasonable suspicion, And they even demonstrated one case where the government has failed to make a prosecution because they couldn't get the information they needed through the normal tools of subpoenas and other kinds of research and in fact a lot of these federal statutes have mandatory program review and sharing provisions that require um information to be turned over to uh the federal government if the federal government requested within particular kinds of parameters. But so, the their whole argument this legislation is based on essentially nothing. They've not given us one case, but they want to give the federal government, again, the power to engage in these massive deep-sea fishing expeditions for everybody's information. And again, you know, um, I was able to just check out there were cases about pay-to-play for getting gun licenses, okay? And you don't even need a a factual predicate for it, but let's say, you know, in your state, let's say, you know, it's in Kentucky or it's in Tennessee, there was some allegations of pay-to-play in gun licensing. Now you're saying the federal government, under the terms of this legislation, can just go and demand all of the private identifying information of everybody who has a gun license in the whole state, even if they haven't done anything wrong, and even if there's no allegation they've done anything wrong. Their name, their address, their social security number, any other time they've p- asked for any other benefit. I mean, we're really headed down in a very Orwellian direction here.

Rep. Leger Fernandez (NM-3)2:02:31 – 2:02:43

uh and i remember when republicans used to be concerned about the government incursions on our privacy they don't seem to be cared much about that anymore either and uh uh madam chair i will yield back

Rep. Foxx (NC-5)2:02:45 – 2:02:48

thank you very much mister norman you're recognized

Rep. Hoyer (MD-5)2:02:54 – 2:03:35

bit you know how how did we get off on pardons and computations They're talking about President Trump. Do you realize how many Joe Biden had? Four thousand two hundred and forty-five. You know who he granted a uh preemptive pardon to? The guy that killed a million people, Anthony Fauci? That's who Joe Biden issued a pardon to. So you can't I don't know why that we got off on this subject, but if you're gonna throw rocks, you need to look at the whole picture with the previous administration, which is horrible. Um, anything you wanna answer, Ben, on this as far as actual

Rep. Cline (VA-6)2:03:35 – 2:04:27

Uh, thank you. I I'd tell the gentleman in the in the committee that was uh that when you're talking about Operation Cold Snap, that was a a real investigation into fraud in Minnesota and that the investigation went to the data that uh was not being provided by the state uh about snap benefits snap data to track massive identity theft rings um and this type of information shields those fraudsters from accountability uh and that's what was going on in minnesota and that's what the department is design is is attempting to address with this legislation so i i thank the gentleman for getting us back on track here and focusing on this important bill

Rep. Hoyer (MD-5)2:04:28 – 2:04:31

Well, good. Thank both of you for appearing. You're back.

Rep. Foxx (NC-5)2:04:32 – 2:04:34

Thank you, Mister Negus. You're recognized.

Rep. Neguse (CO-2)2:04:35 – 2:04:57

Thank you, uh, Madam Chair. Uh, thank you, Mister Klein, and Ranking Member Raskin for being here. Uh, I wanna dovetail on the point that Mister Norman concluded with, uh, because, Mister Klein, my understanding is that there were five states where the Trump administration attempted to freeze funding for TANF, social services, block grants and child care services last year. Does that sound about right?

Rep. Cline (VA-6)2:04:59 – 2:05:01

I'm not sure how many states, uh

Rep. Neguse (CO-2)2:05:01 – 2:05:03

I can avert you that there were five.

Rep. Cline (VA-6)2:05:03 – 2:05:03

Okay.

Rep. Neguse (CO-2)2:05:03 – 2:05:08

Yeah. Those five were California, Illinois, Minnesota, and New York. You know what they all have in common?

Rep. Cline (VA-6)2:05:10 – 2:05:10

Fraud.

Rep. Neguse (CO-2)2:05:11 – 2:05:40

Fraud. Uh-huh. They all happen to be states that didn't vote for Donald Trump, of which of course he is abundantly aware and has made clear that he's retaliating against by virtue of the electoral decisions that the voters and the citizens in those states have made. But in any event, let's talk about your legislation. I wanna get a full sense of the ambit of the kind of fraud that you believe what this new division, it's called the National Fraud Enforcement Division, correct?

Rep. Cline (VA-6)2:05:41 – 2:05:42

That's correct.

Rep. Neguse (CO-2)2:05:42 – 2:05:45

This would be the new division within the Department of Justice to target fraud, right?

Rep. Cline (VA-6)2:05:45 – 2:05:46

Correct.

Rep. Neguse (CO-2)2:05:46 – 2:05:48

Okay. Uh, would procurement fraud be included?

Rep. Cline (VA-6)2:05:50 – 2:05:51

Yes, it could be.

Rep. Neguse (CO-2)2:05:51 – 2:06:01

Okay. Do you know how many criminal federal programs or procurement fraud cases that the Department of Justice has declined? during President Trump's first year in office?

Rep. Cline (VA-6)2:06:01 – 2:06:02

I do not.

Rep. Neguse (CO-2)2:06:02 – 2:06:32

Nine hundred. That is three times, three times, as many fraud cases that were dropped in a similar period of time under the prior administration. So, I'm trying to understand why you've endeavored to take the time of the Congress to create this new division to pursue government procurement fraud when The Department of Justice, under Donald Trump, is dropping procurement fraud cases as fast as they come in.

Rep. Cline (VA-6)2:06:33 – 2:06:52

My understanding is that there are examples across different agencies and in different states where you have for example the Department of Health and Human Services demanding attendance records to stop daycare centers from billing for paper enrollment that the state is dragging its feet until billions in federal funds had to be frozen.

Rep. Neguse (CO-2)2:06:51 – 2:06:55

You mentioned that previously. I'm talking about the procurement fraud. that i just referenced

Rep. Cline (VA-6)2:06:54 – 2:07:04

and and what i'm saying is that when we don't have the information from the state agencies it is very very difficult to prosecute these cases

Rep. Neguse (CO-2)2:06:57 – 2:07:24

why not pursue it ok um let's say that the federal government discovers inspector general of a particular agency discovers that there is potential procurement fraud involving no bid contracts for advertising Would that fall under the ambit of this new division?

Rep. Cline (VA-6)2:07:25 – 2:07:26

It it may.

Rep. Neguse (CO-2)2:07:26 – 2:08:01

It may? I, the reason why I ask, you serve on judiciary with me, you might remember that I questioned secretary Noem at great length about no bid contracts that were issued by her department. And as you probably remember, she was fired the next day. And the inspector general at the department of homeland security has alerted the public about some of the nefarious activities that went on at the department of homeland security under former secretary Noem and the political uh sycophants that she had surrounded herself with so would I be able to refer uh those potential allegations of wrongdoing to this new division that you want to create

Rep. Cline (VA-6)2:08:02 – 2:08:07

so what the first bill uh would deal with that kind of

Rep. Neguse (CO-2)2:08:03 – 2:08:04

would they take that

Rep. Cline (VA-6)2:08:08 – 2:08:09

uh potential activity

Rep. Neguse (CO-2)2:08:08 – 2:08:10

that's where I could go okay

Rep. Cline (VA-6)2:08:10 – 2:08:13

but the second bill would insure that when uh

Rep. Neguse (CO-2)2:08:10 – 2:08:16

that's helpful to know that's helpful to know uh you answered my question uh you answered my question

Rep. Cline (VA-6)2:08:13 – 2:08:15

seeking it from the states that

Rep. Neguse (CO-2)2:08:16 – 2:08:23

that involved the states okay so here's another one Um, I don't know if, this is maybe an odd question. Do you, do you listen to rap music, hip-hop music? Are you

Rep. Cline (VA-6)2:08:24 – 2:08:24

Sometimes.

Rep. Neguse (CO-2)2:08:24 – 2:08:27

Okay, are you familiar with the rapper, uh, Boozy?

Rep. Cline (VA-6)2:08:28 – 2:08:28

Yes.

Rep. Neguse (CO-2)2:08:28 – 2:08:29

You are familiar with him.

Rep. Cline (VA-6)2:08:29 – 2:08:30

I have teenagers.

Rep. Neguse (CO-2)2:08:30 – 2:08:33

Okay. Did you see him on sixty minutes last night?

Rep. Cline (VA-6)2:08:33 – 2:08:33

I did not.

Rep. Neguse (CO-2)2:08:33 – 2:08:51

Uh, you've gotta watch this. Pretty riveting television. As he exposes a number of people affiliated with the Trump administration that are attempting to sell pardons. Six hundred thousand dollars is, I think, how much money he lost as part of this transaction. You're you're not aware of this at all?

Rep. Cline (VA-6)2:08:52 – 2:08:53

Uh, I don't watch sixty minutes.

Rep. Neguse (CO-2)2:08:53 – 2:09:01

Okay, would this be the kind of fraud that we could send to this new division that, that you all wanna create? Would that come under the, under the ambit of this new DOJ division?

Rep. Cline (VA-6)2:09:01 – 2:09:03

I wouldn't be able to answer your question on that one.

Rep. Neguse (CO-2)2:09:03 – 2:09:06

Well, I mean, why are we here? If that's, uh, I'm, it's an honest question.

Rep. Cline (VA-6)2:09:06 – 2:09:08

Because I'm not familiar with the case yourself.

Rep. Neguse (CO-2)2:09:08 – 2:09:51

Well, I can tell you the Trump administration, by all accounts, is selling pardons. that is happening. And, it would strike me that this division that you want to create, this new National Fraud Enforcement Division, uh, you know, perhaps we could get them on the case, because nobody at the Department of Justice seems interested in taking this up now. Okay, how, I've got one more question. I have one more question after this, I really have to go. The bill, the National Fraud Enforcement Division Act of twenty twenty six, uh, section looks like section two subparagraph c or if you have that in front of you i i'm just wanna get a sense of what this provision does and you can let me know once you got

Rep. Cline (VA-6)2:09:51 – 2:09:52

are you speaking to the bill

Rep. Neguse (CO-2)2:09:52 – 2:09:54

i was speaking to the bill yes sir yeah so this is

Rep. Cline (VA-6)2:09:53 – 2:09:54

alright

Rep. Neguse (CO-2)2:09:55 – 2:10:00

this is hr ninety five seventy six and it's a short bill so this is on the second page

Rep. Cline (VA-6)2:10:00 – 2:10:00

oh ok

Rep. Neguse (CO-2)2:10:01 – 2:10:09

right and this is the last provision of the bill the subparagraph uh uh you take your time

Rep. Cline (VA-6)2:10:10 – 2:10:13

Thank you. All right. Um, we're on the last paragraph.

Rep. Neguse (CO-2)2:10:13 – 2:10:14

Yes, sir.

Rep. Cline (VA-6)2:10:13 – 2:10:14

All right.

Rep. Neguse (CO-2)2:10:14 – 2:10:15

You see that?

Rep. Cline (VA-6)2:10:15 – 2:10:15

Yes.

Rep. Neguse (CO-2)2:10:15 – 2:10:24

Okay, so the last paragraph, sub-paragraph C, prohibition on political activity. Do you see that?

Rep. Cline (VA-6)2:10:25 – 2:10:25

I do.

Rep. Neguse (CO-2)2:10:25 – 2:10:28

What does that paragraph purport to do?

Rep. Cline (VA-6)2:10:29 – 2:10:33

Uh, that would ensure that the new division complies with the Hatch Act.

Rep. Neguse (CO-2)2:10:33 – 2:10:46

Got it. So this would ensure, right, that the individuals that are employed at the Department of Justice in this new division you're trying to create are prohibited from engaging in political activity that would be violent to the federal law, right?

Rep. Cline (VA-6)2:10:47 – 2:10:48

That is my understanding.

Rep. Neguse (CO-2)2:10:48 – 2:10:51

Because it's important for the people of the Department of Justice to not be involved in political activity, right?

Rep. Cline (VA-6)2:10:52 – 2:10:52

That is my understanding.

Rep. Neguse (CO-2)2:10:53 – 2:11:02

And would that extend to the Attorney General of the United States of America, Todd Blanch, addressing the Republican party convention that you all had in Texas eight days ago?

Rep. Raskin (MD-8)2:11:02 – 2:11:03

Yeah.

Rep. Cline (VA-6)2:11:03 – 2:11:06

My understanding is the the Attorney General is covered by the hat-check.

Rep. Neguse (CO-2)2:11:07 – 2:11:08

Oh, he's covered by the hat check.

Rep. Cline (VA-6)2:11:08 – 2:11:09

Yes.

Rep. Neguse (CO-2)2:11:09 – 2:11:12

And so you find nothing objectionable about his speech last week?

Rep. Cline (VA-6)2:11:12 – 2:11:13

I didn't see his speech.

Rep. Neguse (CO-2)2:11:13 – 2:11:15

You're aware that he spoke.

Rep. Cline (VA-6)2:11:15 – 2:11:20

I didn't attend the convention, but I suppo- I'm I'm gonna take your I'm gonna take your,

Rep. Neguse (CO-2)2:11:18 – 2:11:19

You're aware now.

Rep. Cline (VA-6)2:11:20 – 2:11:21

uh, it's your word,

Rep. Neguse (CO-2)2:11:20 – 2:11:23

And do you find it objectionable that he addressed the

Rep. Cline (VA-6)2:11:21 – 2:11:21

that he spoke.

Rep. Neguse (CO-2)2:11:23 – 2:11:39

Republican midterm political convention in Dallas, Texas, because it strikes me that that's the kind of conduct that this particular paragraph seeks to prohibit, at least among everybody else at the Department of Justice, except for the chief law enforcement officer for the united states.

Rep. Cline (VA-6)2:11:41 – 2:11:44

i appreciate the gentleman's question i'm happy to review the speech and get back to you

Rep. Neguse (CO-2)2:11:44 – 2:12:24

well i i would suggest to you i appreciate mr. klein your your answer i don't think you need to review a text of the speech of the attorney general of the united states to conclude that the attorney general of the united states should not be addressing a political convention of that nature period full stop And I I would hope that my colleagues would recognize uh the uh the inappropriate nature of what the Attorney General did and the way in which he has created a specter of allegiance, of political favoritism on the part of the Department of Justice, given his conduct. Mister Raskin, do you care to expound upon that? Thank you, Mister Klein.

Rep. Cline (VA-6)2:12:24 – 2:12:24

Thank you.

Rep. Raskin (MD-8)2:12:25 – 2:13:10

Uh, th- again, to return to the bill, um, the our uh dear colleagues on the other side have focused on Minnesota. There have been dozens of indictments and convictions, uh, in the case of corruption that they're referring to, and there should be because that's money that's essentially being stolen from children. We're all together on it, and I'm glad that we're going after it, and we're going after it with all of the existing prosecutorial tools that exist within the current statutory infrastructure. We don't need to open up another land grab on the private data of millions and millions of innocent citizens in order to go after the people who are actually committing fraud or other crimes.

Rep. Neguse (CO-2)2:13:10 – 2:13:13

You're here. I'm Madam Chair, I yield back the balance of my time.

Rep. Foxx (NC-5)2:13:14 – 2:13:55

Thank you very much. Um, uh, Representative Klein, I have two quick questions for you. Um, for years fraud was investigated by the Department of Justice's criminal division And as a consequence, there was no clear priority for efforts to curtail fraud. How is the creation of a division exclusively focused on fighting fraud, shown results already, and by codifying this new division, results like this, which are so important for American taxpayers, can continue regardless of who's in the White House.

Rep. Cline (VA-6)2:13:56 – 2:15:31

Uh, I thank the chair for her question. The creation of the division earlier, by the Trump administration has yielded immediate and impactful results. By shifting authority away from the over-extended criminal division, the Department of Justice has built a fast-moving, highly centralized division to focus exclusively on the fraud crisis plaguing this country. And we're seeing results. Just hours ago, DOJ announced a number of cases and a nationwide crackdown on fraud involving the COVID-nineteen Paycheck Protection program. DOJ's efforts resulted in actions involving more than a hundred and sixty defendants and approximately two hundred and forty five million dollars in intended losses to taxpayers. And in July the Fraud Enforcement Division announced a series of significant fraud enforcement actions across the southeastern United States. The charges encompassed seventeen cases spanning seven states. These cases involve over three hundred and fifty million dollars in intended losses and include cases involving snap benefits, the Small Business Administration loans, housing benefits, and s- and tax fraud. So by uh codifying the national fraud enforcement division uh moving it from a temporary administrative policy to a permanent structured component of federal law enforcement uh what you have is uh the ability uh to insure that a future administration uh can't theoretically dissolve the division with the stroke of a pen uh return fraud enforcement to its previous status scattered across the criminal division and in essence giving the green light to fraudsters this bill would prevent that from happening and i appreciate this generalist question

Rep. Foxx (NC-5)2:15:31 – 2:16:40

well i will also wanna identify myself with comments from representative scott this fraud is a huge issue in my district and the honest people that i serve are just appalled at the amount of fraud uh that has been um allowed to flourish under the previous administration. And people are just mortified that this kind of money is going to crooks. Thank you gentlemen very much. There's no further questions or you are excused. I'd now like to welcome our panel, Representative McCall, and ranking member meeks from the committee on foreign affairs. Your full statements will be submitted for the record. We ask that you summarize your statement in five minutes. Representative McCall, I welcome your testimony and um

Rep. McCaul (TX-10)2:16:39 – 2:16:43

Thank you for asking. I mean, I don't think it's been a very long time.

Rep. Foxx (NC-5)2:16:44 – 2:16:53

When I spoke to Mister McGovern at the beginning of this meeting, I said, do you think we can get through before votes? "Oh yeah, no problem." So

Rep. Cline (VA-6)2:16:52 – 2:16:54

I have a second to join your side.

Rep. Foxx (NC-5)2:16:53 – 2:17:09

So uh No pressure here, but um uh I will ask you to be sure to keep your comments under five minutes. Mister McCall, you're recognized.

Rep. McCaul (TX-10)2:17:09 – 2:24:49

Thank you Madam Chair and Ranking Member. Uh, this is a critical time in history, a time my friend Senator Lindsey Graham described as a magic moment. Today we have an opportunity to help end the war in Europe and to project peace through strength around the globe. But before I get into that, I want to talk about what brought us here to this moment. When I chaired the Foreign Affairs Committee during the fall of Afghanistan, a disaster of epic proportions, that telegraphed American weakness to our adversaries, Putin was watching. He met with President Xi at the twenty twenty-two Olympics to solidify their unholy alliance. Then we watched on satellite imagery as the Russian Federation moved towards Ukraine. I'll never forget visiting Poland with ranking member Meeks and seeing the refugees fleeing out of Ukraine. The similarities to my father's war, World War Two, were striking. The Poles told us this is nineteen thirty-nine all over again. The oceans did not shield us from tyranny then, and they will not shield us now, especially as Russia, China, Iran, and North Korea work together to threaten America and our allies. Make no mistake, President Xi is watching what happens in Ukraine to determine whether he can get away with invading Taiwan. He's calculating whether or not the free world will stop Putin's aggression. And he's certainly watching what we do here today. Senator Lindsey Graham understood these global threats well. And that's why he spent more than a year working on this legislation, which I promised him I would introduce in the House. He brought Republicans and Democrats together and secured the White House support. This week we have a chance to finish his work. I am proud to champion the Lindsey Graham sanctioning Russia and Iran Act of twenty twenty-six I want to thank Mister Hoyer and our colleagues on both sides of the aisle for their strong support. For me, this is also personal. Lindsey Graham was my friend. He was my mentor. He understood the threats facing this country and had the courage to stand up and confront them. We shared a fundamental belief that, quote, " America is strongest at home when it projects strength abroad." He and I were both in Ukraine on separate trips a week before he passed. While there I met with soldiers and commanders on the front lines. I also saw Ukraine's drone operations and the extraordinary innovation they brought to this fight. People said Ukraine would fall in four days. But more than four years after the invasion, they are still in the fight. And the assistance we fought to pass in twenty twenty four helped give them tools to survive and begin turning the tide of war. Now is the time for the free world to put maximum pressure on Putin to bring him to the negotiating table. And that's where this legislation comes in. It targets the money that fuels Russia's war machine. It goes after Russian officials and oligarchs, banks and financial institutions, and the shadow fleet that helps cheap Russian energy moving. By using narrowly scoped and precisely targeted tariffs, it exercises Congress's, it's important, Congress's Article One authority over foreign commerce to punish countries providing financial support for the deadliest war in Europe since World War Two. These countries have a choice to make about whether they will continue to sustain Putin's aggression. Putin believes he can keep financing this war indefinitely. We need to change that calculation and ensure there are consequences for helping him. You cannot look at what Russia has done to Ukraine and pretend these are ordinary business transactions with no connection to bloodshed. The Kremlin has murdered thousands of civilians in cold blood. They have bombed sacred churches and schools. They have kidnapped countless children, tortured and indoctrinated them, and sent them to fight on the front lines against their own country. We have a moral responsibility to bring an end to this suffering. But there is also a very clear Mash- an American national security interest in stopping the Kremlin's campaign of aggression. If Putin is rewarded for invading his sovereign nation, if he succeeds, he has already told us he will go further. His army will move into Moldova, Georgia, and the Baltic States. And just like Putin wants to bring back the power of the Soviet Union, President Xi wants to restore imperial China. These dictators must be deterred before it's too late. This legislation exta- extends also sanctions on Iran, which are set to expire at the end of this year, restricting funding for its energy and weapons sectors. Again, this is all tied together. In twenty twenty four, I spoke before this committee about Iranian drones being used by Russia to kill Ukrainians. In return, Russia is reportedly providing targeting information to the Iranian IRGC. We cannot look at one part of this threat and ignore the others. This bill leverages our economic strength to make it harder for these regimes to finance aggression. As Chairman Emeritus of the Foreign Affairs Committee often said that partisanship stops at the water's edge. And I still believe that. We are free to have disagreements, that's democracy. But when we're addressing our adversaries, we need to need to speak as one, with one voice, as one nation. They need to know that we're not divided when it comes to our national security. The Senate passed this legislation by a vote of eighty-six to eleven. That is an overwhelming bipartisan vote. Now the House must act. What would it communicate to Putin if the United States can't rally around such broadly supported legislation? How would our failure to act encourage North Korea to continue sending its soldiers to the meat grinder, or Iran to continue supplying Russian with weapons to kill innocent civilians? This is a moral issue that requires moral courage. When we look back on this moment, I want us to be able to say that we did everything possible to end this war, that we understood the threat, we had the courage to do what was right, to cripple the Russian war machine, and turn the tide towards peace. On my latest trip to Ukraine, I met with President Zelensky who told me he is ready for a cease-fire, ready to negotiate. Putin, on the other hand, defies President Trump and the international community by refusing to come to the table in in in in conclusion Lindsey Graham said if this passed, it would be his greatest legislative accomplishment. I can think of no better way to honor his life and legacy than passing these tough sanctions. Finally, he said, I've never been more optimistic than I am today that we have the formula to end this war. I couldn't agree more. The time to act is now. With that, Madam Chair, I yield back.

Rep. Foxx (NC-5)2:24:50 – 2:24:52

Thank you. Mister Meeks, you're recognized.

Rep. Meeks (NY-5)2:24:52 – 2:32:41

Thank you, Madam Chair, thank you, member McGovern. Uh, I wanna say that, uh, first of all, no one, no one has stood stronger for Ukraine than I. Uh, I led the last delegation into Ukraine before they were invaded. I led, when I was the chair of the committee, the first delegation into Poland as they were fleeing from the - the - the usurper, the families, the women and the children that was fleeing from Ukraine. I advocated strongly throughout to make sure that we would give Ukrainians the what it, the resources that it needed to protect itself, even the long range attackams, et cetera. We've not passed a supplemental bill in this Congress in over two and a half years to give Ukrainians anything. We fought to do that. We didn't have the votes to get it done. So, I'm here to speak in opposition to the Lindsey O. Graham sanctioned Russia and Iran act because it is deeply flawed despite what its title says. It is unlikely to result in any new sanctions on Russia. It will, however, hand the President of the United States sweeping new tariff authorities that he can abuse to raise the cost on the American people. My position is entirely about the merits of the legislation. And because this is the Rules Committee, it bears emphasizing that the House of Representatives had absolutely nothing to do with its drafting, and this bill has not moved through committee, and it was drafted by White House lawyers, uh, the the the current White House lawyers drafted the current text to maximize President Trump's authority to impose new import taxes on the American people and to minimize any obligation to actually impose new sanctions on Russia or its abilites. I should point out that this house did pass, in a bipartisan way, a real sanctions bill without tariffs and sent it over to the Senate, that the Senate did not agree to. Would not put it on the floor. Mister Graham refused to do that. because he said it had to be something that the president wanted. It's only coming to the floor because the president told Speaker Johnson he wanted the broad tariff authorities immediately. The Senate sending the House a bill that does not relieve the House of its responsibility to review it. We have repeatedly opposed giving President Trump unchecked tariff authority Congress should not respond now by handing this president even broader tariff power with too few guardrails. Now some of my majority colleagues may be comfortable moving a bill drafted by the executive branch to give the executive branch more power over an issue that the Constitution delegates to Congress. The founders of this country would not be. Let me turn to the substance of the bill. First, sanctions. I fully support tougher sanctions on Russia, and I've done everything in my power to help Ukraine, as I have indicated. I stand fully with the Ukrainian people who have fought and died to save their country. And that's why I've been calling on this administration's, uh, to s- to sanction Russia more. The president already, right now, today, has the power to impose every single sanction or other form of, of transaction prohibition authorized by this bill. He can use those these tools today, right now, but for the past nineteen months has chosen not to. Other than limited sanctions on two oil companies and their subsidiary's landsfall, the administration has repeatedly refused to use the power it already has to put pressure on Russia. The president has lifted or let lapse sanctions on Russian actors that previous administrations put in place. While President Biden imposed about fifteen hundred sanctions per year on Russia during his turn. All of the sanctions in this bill can be waived at the President's discretion. And there are no safeguards around the waiver once he does it. Nonetheless, because I am committed to finding a good faith compromise that actually helps Ukraine, I would support this bill even if it was just something ceremonially if the tariff language in section one thirteen was removed. As drafted, section one thirteen directs the president to impose the tariffs of up to one hundred percent on goods from major purchases of Russian oil and gas and so-called top oil sanctioned evaders without any clear definition of what constitute a top oil sanctioned evader. Those authorities could reach a large share of US imports and drive up gas and food prices at a time when American households have already absorbed tens of billions of dollars in extra energy costs. These are extraordinary broad powers to give a president who has abused nearly every authority he has, a president, especially one who calls himself Mister Tariff or the Tariff Man would be would be able to place tariffs or nearly any country he wants. Russian oligarchs have hidden assets in countries around the world, including ours. Does anyone seriously believe that President Trump will not use this broad language as a pretext to tariff whomever he is personally mad at or curr- Just look at what's happening currently. Senseless, we have a senseless trade war with Canada, which is already legally Dubious. And that is precisely why the President wants this new, clearer and broader authority. Just came back from Australia. One of the things they were concerned about is tariffs. Any place I travel in the world, the UK, the, our European allies, one thing they're concerned about is tariffs. Uh, we see this, uh, over and over again. So, I proposed several amendments to fix this bill. Working with ranking member Neal to remove the secondary tariffs. authorizing substantial foreign military financing for Ukraine tightening the waiver language so that President Trump would actually have to impose some of the sanctions and clarifying that the EU cannot be tariffed as a block so that States that have been exemplary on Ukraine are not punished for the decisions of others. Let me sum up real quick. What will happen if this bill becomes the law? The President will not impose tough new sanctions on Russia, but he will gain broad authority to tariff products and raise prices on goods from countries around the world far beyond Russia and its energy clients. American families will pay the cost of this bill. Vladimir Putin will not. We do not need to go back to the drawing board, but we do need to a negotiation to fix this legislation. So I say, let's work to find a compromise that properly punishes Russia for its illegal war of aggression, against the ukrainian people while protecting the american people from a reckless inflationary terrorist and i yield back

Rep. Foxx (NC-5)2:32:43 – 2:32:51

thank you very much um just a minute um mister scott mister scott you're recognized

Rep. Scott (GA-8)2:32:52 – 2:34:00

madam madam chair i'm uh i'm not gonna ask the gentleman that are presenting any questions i know we have votes but i wanna say this Um, if the Biden administration had enforced the sanctions on Russian oil and not encouraged India to continue to buy Russian oil, the war would have ended a long time ago. And so, I share some of the concerns that have been expressed about about the additional tariffs. Uh, but but again, I mean, the Biden administration made a choice, not enforce the sanctions on Russian oil. Had they enforced the sanctions on Russian oil, I think this war would have been over a long time ago. Uh, one final thing on the European Union. The non-tariff trade barriers they're they're putting in on American agricultural producers, uh, most people hear about tariffs as ten percent or fifteen percent or thirty percent of whatever the dollar figure is. It is the non-tariff trade barriers that the European Union put is putting in that is so damaging to the trade relations. With that, Madam Chair, I yield.

Rep. Foxx (NC-5)2:34:01 – 2:34:03

Thank you, Mister Scott, Mister McGovern.

Rep. McGovern (MA-2)2:34:03 – 2:34:15

Oh, good. Uh, let me just say, first of all, um, uh, you may not, uh, you may have missed this, Mister Scott, but Trump actually waived the sanctions on Russian oil, um, in uh in uh in the in the presidential election.

Rep. Scott (GA-8)2:34:14 – 2:34:16

And I disagree with that very much.

Rep. McGovern (MA-2)2:34:15 – 2:34:18

So, I mean, give me a break.

Rep. Scott (GA-8)2:34:16 – 2:34:19

I want you to know that I'm not talking about Trump.

Rep. McGovern (MA-2)2:34:18 – 2:35:19

Um, and then I'll also say that, um, uh, you know, my problem with all this is I don't trust the President. I mean, he's been an un- um, uh, reliable ally, um, in the Ukrainian, uh, effort. um and the sanctions that are in this bill he could impose right now um and as mister meeks pointed out and in this bill it moves the sanctions forward but gives him waiver authority um and i i i just i mean i don't i don't trust him uh on any of this stuff uh and i do worry about the tariffs which are which are killing our constituents um and i mean you know was it responsible for the president to start a trade war with canada i mean a a close ally a member of the five eyes alliance because of canada's recent wildfires i mean the answer is no i mean what about trump threatening tariffs against fellow native members of denmark norway sweden france germany the uk um and finland if they didn't agree to give us greenland remember that i mean

Rep. Foxx (NC-5)2:35:18 – 2:35:19

hmm

Rep. McGovern (MA-2)2:35:19 – 2:37:00

that uh you know as a person who cares about our alliances mr. and and i i can't believe that you thought that that was a a a good idea. And President Trump cut Vietnam's tariffs in half after they approved a one point five billion dollar proposal by the Trump organization to build golf courses and hotels and real estate projects in Vietnam. I can't believe that people here support that. I mean, just over the weekend, Trump waived a ten percent tariff on Irish whiskey. I'm not gonna object to that. But the bottom line is that that was only after Ireland made Trump's golf resort the host for a golf tournament. i mean you know i mean despite uh americans paying the price for these reckless tariffs i mean the response by my friends here is to give him more tariff authority you know and uh uh let me just ask you know again uh uh it is uh let's be clear trump can do this right now he doesn't need congress to do these sanctions but one more question this morning pro publica published an article titled donald trump junior's bahamas wedding was secretly bankrolled by russian oligarch close to putin and according to this investigation umar kremlev who is the head of the international boxing association which has been financed by the russian state owned energy giant gasprom uh footed the bill for hundreds of thousands of dollars of wedding expenses including a private fireworks show um and rent out uh one of the wedding's several private islands believe it or not let me actually just recall given his ties to russia's state-owned energy company would mister kremlin be sanctioned under this bill

Rep. McCaul (TX-10)2:37:02 – 2:37:37

that is congress's intent and i wanna clarify this is not grant sweeping tariff authority to the president in fact we are exercising the very powers that the supreme court recently held that congress has under article one and i can quote to uh president zelensky's team who i recently met with said You can evade sanctions through illicit networks, but you cannot evade tariffs. And Russia's been evading sanctions for four years. The teeth of this bill is exactly that, the tariffs that you you can take

Rep. McGovern (MA-2)2:37:36 – 2:37:41

Do you g- do you guarantee that none of our none of our allies, uh, will be hit with tariffs under this bill?

Rep. McCaul (TX-10)2:37:41 – 2:38:20

I can't. The rule of construction says very, you know, plainly in the statute for this bill that nothing in this act shall be construed to authorize the imposition of duties with respect to goods imported from any country not expressly described. This uh issue was raised in the Senate with Senator Womack, who received a letter from USTR, basically saying regarding our conversation, the legal basis to maintain, modify, or adjust the rate of duty specified in this bill exists only where a country meets the description and subsection C, including countries identified,

Rep. McGovern (MA-2)2:38:20 – 2:38:20

Yeah.

Rep. McCaul (TX-10)2:38:20 – 2:38:26

and subscri- and he base says absent this legal basis, such duties cannot be maintained.

Rep. McGovern (MA-2)2:38:25 – 2:38:34

Well, the way the way I interpret this bill, Mister Mieskirchen, if I'm right, is it gives Trump the absolute authority to implement tariffs as he's he's fed.

Rep. McCaul (TX-10)2:38:34 – 2:38:36

Now, I disagree with that assessment and the USTR,

Rep. McGovern (MA-2)2:38:34 – 2:38:36

And putting it to the tariff line.

Rep. Meeks (NY-5)2:38:34 – 2:38:34

I

Rep. McCaul (TX-10)2:38:36 – 2:38:38

uh, very clearly disagreed with that.

Rep. McGovern (MA-2)2:38:39 – 2:38:45

I I I I every interpretation that I uh that I have received from from experts on this have told me the opposite of what you're saying.

Rep. McCaul (TX-10)2:38:45 – 2:38:46

The language is in the statute.

Rep. McGovern (MA-2)2:38:46 – 2:38:47

It is the best to me.

Rep. Meeks (NY-5)2:38:47 – 2:39:02

It wasn't even negotiated in the in the Senate. What it was done was that Graham for years was trying to get something done, couldn't do a bit, and then said he would not do anything unless Donald Trump agreed. Donald Trump would only agree if he had more tariff authority to abuse.

Rep. McGovern (MA-2)2:38:57 – 2:39:04

No. So right, and and he can waive the sanctions.

Rep. Meeks (NY-5)2:39:03 – 2:39:05

That's clear. And he can waive the sanctions.

Rep. McGovern (MA-2)2:39:05 – 2:39:25

Well, wait, listen, I Well, let me just ask this, can we what about uh being open to an amendment that would limit the tariff authority in the bill to only adversaries? Um you know as as not to give the president authority or more power to impose tariffs on our nato allies would you agree with that i mean could we could we i mean i think a lot of us would would would

Rep. Meeks (NY-5)2:39:23 – 2:39:33

well let me just say that because i say if we could strike that this says this amendment is adopted the bill would be get overwhelming democratic support if we strike the secondary tariffs

Rep. McGovern (MA-2)2:39:33 – 2:39:34

yeah

Rep. Meeks (NY-5)2:39:34 – 2:39:38

we get overwhelming just strike the second if that's not a question just strike the tariffs

Rep. McGovern (MA-2)2:39:39 – 2:39:39

i mean i

Rep. Meeks (NY-5)2:39:39 – 2:39:41

i'm ready to work we can collect the press

Rep. McCaul (TX-10)2:39:40 – 2:39:48

then according to zlansky's team that we get this bill in the teeth of this bill the the the the rule of constructions

Rep. McGovern (MA-2)2:39:47 – 2:39:48

with all due with all due

Rep. Meeks (NY-5)2:39:47 – 2:39:48

mmm

Rep. McCaul (TX-10)2:39:48 – 2:39:50

Mr. McGregor you understand the rule of construction is very limited to i mean i think uh

Rep. McGovern (MA-2)2:39:49 – 2:39:54

with all due respect so with with all with all due respect

Rep. McCaul (TX-10)2:39:53 – 2:39:58

the top five offenders top five offenders are terrorists

Rep. McGovern (MA-2)2:39:56 – 2:40:10

i i think it's a good time for this committee yeah so if you do if you i think the time so i'm asking if right yeah right and with all due respect what zelinski wants is a reliable ally in the united states and he has not gotten that from this president and this administration

Rep. McCaul (TX-10)2:40:08 – 2:40:11

and he is asked for passage of this bill

Rep. McGovern (MA-2)2:40:11 – 2:40:19

eh yeah passage of this bill to tell the president to implement sanctions that you have given him the authority to waive um and uh and uh

Rep. McCaul (TX-10)2:40:18 – 2:40:23

only limited to the top five importers of russian energy

Rep. McGovern (MA-2)2:40:20 – 2:40:24

and you and you have given him the authority

Rep. McCaul (TX-10)2:40:24 – 2:40:25

so we change the behavior

Rep. McGovern (MA-2)2:40:25 – 2:41:15

right wait i have the time here uh and in addition you have given him the authority to implement sanctions against even our allies um in terms of tariffs um and i and again i think there's a way to get a a a a a almost unanimous vote on this Uh, but for whatever reason, um, you guys don't seem to wanna be open to that. So, the people who have been supportive of President Zelensky and the Ukrainians, I was part of the first delegation, the first congressional delegation that went there. And I have suppo- supported every appropriation to help in this war effort. Uh, the big question always is, where is the president? Um, and so, again, um, and I think that, I, I, I think that, that, that, that, that is, we have, many of us have problems with this bill because it opens up tariff authority to the president. that quite frankly he has abused. Uh and w- and Mister Meeks do you want to add anything to this?

Rep. Meeks (NY-5)2:41:14 – 2:42:07

Yeah. So I just wanted to just say, look, would make common sense if we all wanna make sure, but, if we clarify that the EU cannot be tariffed as a block, I mean, the EU has been standing with Ukraine and giving them everything else. We should be able to make sure that it's clarified that the EU could not be tariffed as a block. Strike the secondary tariffs, strengthen the waiver, so that the president can't just waive the sanctions one time based on his soft stance on putin and i think we should also if we really care about ukraine as we did in the bill that we passed put fifteen billion dollars in foreign military financing for ukraine that's what they need they need to have support to keep to knock down the missiles that are being struck

Rep. McGovern (MA-2)2:42:03 – 2:42:07

mmm Right.

Rep. Meeks (NY-5)2:42:07 – 2:42:09

The spanking them is like a phishing space.

Rep. McCaul (TX-10)2:42:08 – 2:42:10

Mayor is running the the CEU argument.

Rep. McGovern (MA-2)2:42:08 – 2:42:28

Let me let me let me read for the bill. Let me read for the bill. The president may, subject to uh subsection B, waive the application of any sanctions uh provisions with respect to a foreign person, any restriction with respect to a person or any duty under this title. I mean, the language is clear that he can just ignore all of this.

Rep. McCaul (TX-10)2:42:26 – 2:42:26

It's clear.

Rep. McGovern (MA-2)2:42:28 – 2:42:36

Um, and you know what, given his track record, um, and his unreliable support in Ukraine, um, I I believe he will use this authority. With that, I yield.

Rep. Foxx (NC-5)2:42:37 – 2:42:57

Thank you, Mr. McGovern. I'll just make one quick comment about uh, I think uh, Mr. Meeks said, but where is the president on all this? Well, where was President Biden when this war started? Could have been over in a few days, yes, on Ukraine's side. And then I want to point out that the Senate

Rep. Meeks (NY-5)2:42:56 – 2:42:59

President Trump said it would be over day one of his administration.

Rep. Foxx (NC-5)2:42:59 – 2:43:06

I would like to say the Senate the Senate vote on this was eighty-six to eleven on August seventh.

Rep. Meeks (NY-5)2:43:00 – 2:43:01

Day one.

Rep. Foxx (NC-5)2:43:07 – 2:43:11

Um, Mr. uh, Norman, you're recognized.

Rep. Hoyer (MD-5)2:43:12 – 2:43:51

Yeah, I said until, I'm so frustrated with the Senate for holding our bills up. They have over five hundred bills they hadn't passed, so you know, I am dubious of them passing something expecting us to act. But let me ask you this, Chairman McCall. Um, South Carolina has a lot of manufacturers that do businesses with a lot of different countries. They sign five and six year deals, contracts. where they're fixed on their price, on the price that they uh that they negotiate. How will that affect them, say uh if it's on a Tawa- Taiwan or uh India where we do trade, how are these, how are they gonna be protected? Just make sure you can answer this too.

Rep. McCaul (TX-10)2:43:51 – 2:45:05

Well it's uh it's on the top five importers of Russian energy, and you can be taken off the list if your behavior changes. I think the fact is I I can't speak to specifically companies in your district, Um, but it is designed to sanction the top five importers of Russian energy, period. Uh, the, and this idea that it can be expanded beyond that is it r- goes against the face of the language in the bill, in the rule of construction, and the letter from the ambassador, ambassador Green, USTR, uh, that it will be limited to the confines of this bill. And with respect to the EU, It's not a foreign country. And in fact, the president of the EU supports this bill, specifically, as does President Zelensky. And the argument can be made, uh, by the, um, by the economist, uh, who stated that this bill will result in lower energy costs, not higher energy costs. That the combination of sanctions and tariffs will bring an end to this war. And it is within the power of of the United States government to do so.

Rep. Hoyer (MD-5)2:45:05 – 2:45:28

No, I'm not questioning the sanctions. I'm not questioning EU. I'm not all I'm asking is if the United States is doing trade with India, as an example, I saw India as being on there. Uh, China, we right, wrong, or indifferent. We import, we do a lot of things with China. They signed, when you when you're a manufacturer, you sign a five-year deal or four-year deal. Fix the price. How will that affect the

Rep. McCaul (TX-10)2:45:28 – 2:46:35

Well, and it this this gives the president leverage Obviously in his upcoming, you know, negotiations. China is one of the main offenders. But our adversaries are the main offenders, Russia, China, Iran, and North Korea. India, if they in good faith, uh, change their behavior, they can be taken off the list. And that's true with all five of the top, uh, importers. The USTR will communicate to Congress the scope of the terrorists in advance, uh, that we can work with them on. Uh, but again, I, I think if, yeah, look. The bottom line is Putin's not gonna come to the negotiating table unless we pass this bill. And we have an opportunity to do something significant in this Congress. Otherwise, we waste this time. And as they go into winter, you know, Ukraine could fall. And we're not gonna have another bill to vote on. I know the Democrats, you know, wanna change it, they want another bill. But if we wanna end this war, bring down the cost of energy, bring peace to the region and stop our adversaries like Russia, China and Iran you need to support this bill.

Rep. Meeks (NY-5)2:46:35 – 2:46:45

Just in response to you, Taiwan could be. India is number five, Taiwan buys it, so Taiwan would be affected by this bill. Number two

Rep. McCaul (TX-10)2:46:45 – 2:46:46

That is not correct.

Rep. Meeks (NY-5)2:46:46 – 2:46:47

That is correct.

Rep. McCaul (TX-10)2:46:47 – 2:46:49

No, I I disagree with my colleague on that.

Rep. Meeks (NY-5)2:46:48 – 2:48:47

That is correct. Well, I disagree. Number two, I keep hearing that I met also with a number of the of of of President Zelensky's team. who came and met with a number of members, I was one of those that were included therein. And when we had our discussion, you know, they're looking for hope because they have not seen any hope from the United States for a while. So they're looking for help. And they think that anything, because the morale, because we have not done any supplemental, that's why I included the billion of dollars for foreign military financing, uh, in Ukraine, as in Ukraine, as we had in the bill that we passed in the House, that the Senate refused to look at. So for us just to automatically to, you know, give something to the Senate without us looking at it, and as I have been trying to do to negotiate something, to work together the way this process is supposed to be. This bill did not come through the committee or anything of that nature. This is the way I think that we would be able to get to something because I do believe the majority of members would support Ukraine. But they don't wanna hurt the American people. at the same time people like your constituents in south carolina that could be affected by these tariffs uh as as i said i just came back from australia and i talked to businesses people there their number one concern is this president and the tariffs go ask our colleagues uh that's uh in michigan or ohio or those states upstate new york they're all concerned about the tariffs that this president has imposed on Canada. So, and he says, he believes in tariffs, this is a way to get around some of the restrictions, or some of the the the the the authority that the constitution gives the United States. Which is why the only time that he consented to a bill that Mister Graham presented is was he had to have tariffs in it. Let's take the tariffs out, let's not hurt the American people,

Rep. McCaul (TX-10)2:48:46 – 2:48:49

Yeah, the problem is the sanctions have been evaded.

Rep. Meeks (NY-5)2:48:47 – 2:48:48

and we can make a difference there.

Rep. McCaul (TX-10)2:48:49 – 2:49:01

and tariffs are the teeth of this bill to enforce it. And that's that's been said clear by Zelensky's uh Expert on Sanctions. It's been made made clear by the uh USTR,

Rep. Meeks (NY-5)2:48:59 – 2:48:59

Yeah.

Rep. McCaul (TX-10)2:49:02 – 2:49:03

our US trader representative,

Rep. Meeks (NY-5)2:49:02 – 2:49:06

Uh, how to use this is Zelensky as an ex- as an excuse,

Rep. McCaul (TX-10)2:49:03 – 2:49:07

that that is gonna be what's gonna bring this war to an end.

Rep. Meeks (NY-5)2:49:06 – 2:49:07

the best way to do this,

Rep. McCaul (TX-10)2:49:07 – 2:49:09

That will bring this war to an end.

Rep. Meeks (NY-5)2:49:07 – 2:49:11

cuz I've talked to that more so. No one has been more supportive.

Rep. McCaul (TX-10)2:49:10 – 2:49:18

And and it's not a broad sweeping tariff authority bill. The rules of construction are very clear. It's limited to the top five importers of Russian air.

Rep. Meeks (NY-5)2:49:17 – 2:50:06

Let me also indicate this. why this is important because if you know tariffs and and and sanctions is what you wanna do when you are trying to isolate a country and we're saying we wanna isolate russia let me tell you what the president did just two weeks ago just two weeks ago he took the russian foreign minister the russian foreign minister with him to the g twenty finance meeting well about finances if he is really trying to isolate and sanction russia why in the heck would you take the russian finance minister unannounced to any of our g-twenty partners which they're worried about to that meeting

Rep. McCaul (TX-10)2:50:10 – 2:50:12

i don't think that's response i mean you know

Rep. Meeks (NY-5)2:50:14 – 2:50:20

It goes to what Mister McGovern is talking about, the credibility of the president to do the right thing.

Rep. McCaul (TX-10)2:50:18 – 2:50:28

The the this is a false argument that there is sweeping tariff authority. How come it's so much better to speak over each other, to have a link to to the call, to, uh, to know that Mr. McCall is there?

Rep. Foxx (NC-5)2:50:28 – 2:50:31

Mister McCall. Well, I had, but Mister Bix answers the question, then Mister McCall.

Rep. McCaul (TX-10)2:50:31 – 2:51:17

Right. Yeah, wait, I, as I said, it it applies in the top five uh importers of Russian energy. Uh, the whole rationale behind, and that is the teeth of the bill. The sanctions, while they've been out there, have been uh evaded the sanctions, and that that's been clear over the last four years. Lindsey Graham and I both believe that these the tariff authority, which is done under the Constitution as the S- Supreme Court said, Article-one authority is what we as Congress are expressing, not the executive branch. That tariff authority against our adversaries will bring this conflict to an end and it will bring also I think energy prices down, and will you know hurt our adversaries not our allies

Rep. Meeks (NY-5)2:51:17 – 2:51:46

President said at regular end day one that that was easy to do he just had the president just had two of his individuals mister witkoff and mister kushner go to russia what did russia do the next day bomb ukraine and then what did we see mister mister kushner and mister whip cough talking about oh what a great meeting and laughing around how historically this meeting will take place in the future

Rep. McCaul (TX-10)2:51:46 – 2:51:49

that's no argument for congress to see that's authority is that is that is that

Rep. Meeks (NY-5)2:51:49 – 2:51:51

does that sound like someone that wants to put sanctions on russia

Rep. McCaul (TX-10)2:51:52 – 2:52:05

is that no argument for congress to do nothing and let this bill die in the house which would have a strong impact it's very rare to be able to vote on something that will change global politics this is it

Rep. Meeks (NY-5)2:52:05 – 2:52:13

this is not it what we should do is work together to come up with something collectively. Let's negotiate something that would help Ukraine,

Rep. McCaul (TX-10)2:52:13 – 2:52:15

Past eighty-six to eleven in the Senate.

Rep. Meeks (NY-5)2:52:13 – 2:52:16

like getting rid of secondary tariffs,

Rep. McCaul (TX-10)2:52:16 – 2:52:16

Madam Chair?

Rep. Meeks (NY-5)2:52:16 – 2:52:19

like clarifying that the EU cannot be tariff,

Rep. McCaul (TX-10)2:52:17 – 2:52:18

Madam Chair.

Rep. Meeks (NY-5)2:52:19 – 2:52:37

like strengthening the waiver so that the president can't waver, and like giving Russia fifteen billion dollars to defend itself. This is right now for the House of Representatives a Churchill versus a Churchill versus Chamberlain moment let's stand up and be Churchill, and not be Chamberlain.

Rep. McCaul (TX-10)2:52:37 – 2:52:38

Stand up and act.

Rep. Foxx (NC-5)2:52:38 – 2:52:40

recall the meetings

Rep. McCaul (TX-10)2:52:39 – 2:52:41

that's a church hill moment

Rep. Foxx (NC-5)2:52:41 – 2:52:55

mr. bates mr. mccall the chair is going to declare a recess we are going to vote and will come back immediately after the call for the second vote

Rep. Hoyer (MD-5)2:52:55 – 2:52:56

you want me to yell back

Rep. Foxx (NC-5)2:53:00 – 2:53:01

it says any time

Rep. McCaul (TX-10)2:53:04 – 2:53:06

do you have do you have one that's not on the computer

Rep. Foxx (NC-5)2:53:07 – 3:12:20

we can we can come back and come back with you if i can play no no each other. This will go a lot quicker if you'll respect each other and whichever one has the time um the if the other will wait to be recognized. Miss Scanlon, you're recognized.

Rep. Scanlon (PA-5)3:12:21 – 3:14:00

Thank you. Uh, Madam Chair, look, I believe that the United States should, equivocally support the people of Ukraine and stand with them in their courageous fight for their country, for their freedoms, and that we should be holding Vladimir Putin accountable for his brutal and unprovoked invasion but that means Congress needs to find effective ways to increase pressure on Putin and those financing his war but as we consider this legislation we can't ignore the abuse of tariff authority that we've seen from this and I thank Representative McCaul for um acknowledging that the Supreme Court has already held that the tariff authority was abused. So, as we consider this bill, we have to ensure that legislation intended to punish Putin doesn't undermine Congress's constitutional tariff powers, um and that it doesn't leave American families paying the price as they have for so many of the tariff wars that we've seen already uh this term. So, I was really interested, Ranking Member Meeks, in the discussion about not just the tariff powers enclosed included in this bill, but also the power to modify or waive sanctions. Because we've already seen President Trump waive sanctions against Russia when it seemed to suit his personal or political, um, interests rather than the interest of continuing to keep pressure on Russia. why does that discretion concern you and can you talk about what additional guardrails we might put in a russian sanctions package

Rep. Meeks (NY-5)3:14:00 – 3:14:07

yeah so it concerns me because the waiver that's in there is minimal

Rep. Scanlon (PA-5)3:14:08 – 3:14:08

mmm

Rep. Meeks (NY-5)3:14:09 – 3:14:16

and he has the power right now to issue those sanctions if he wanted to

Rep. Scanlon (PA-5)3:14:16 – 3:14:16

mmm

Rep. Meeks (NY-5)3:14:17 – 3:14:32

and the reason that he you know in my viewpoint is he going to you know he gonna meet with president xi in next week or two

Rep. Scanlon (PA-5)3:14:33 – 3:14:33

hmm

Rep. Meeks (NY-5)3:14:35 – 3:14:57

if he wants to sanction china he can do it but from all that i'm hearing thus far that's not gonna happen If you look at as Mister McGovern had talked about the credibility of what he has shown his intent to be

Rep. Scanlon (PA-5)3:14:58 – 3:14:58

Mm-hmm.

Rep. Meeks (NY-5)3:15:00 – 3:15:52

It's not about sanctioning Russia because he has waived some of those sanctions. And as I have indicated the fact that he has continually do the kinds of things with Russia that would baffle the American people. I mean Mister McGovern talked about his son's Wedding. Trump's son's wedding. Who was one of the major finances? Russia. You keep seeing these intertwines. Now, if you talk about, for example You wanna help the Ukrainian people? And Congress really wants to make a statement? That Mister, uh, President Zelensky would really want, because what's killing them now, as I said? After Mister Kushner? Mister Whitcough went to Russia. The bombs kept flowing.

Rep. Scanlon (PA-5)3:15:52 – 3:15:52

Mm-hmm.

Rep. Meeks (NY-5)3:15:53 – 3:17:40

And the munitions, the Patriots that the Ukrainians need to fight off Russia is what would help them. What a statement would that make? If we included fifteen billion dollars in foreign military financing for Ukrainian. You know, that's the old expression. Put your money where your mouth is. And so if you wanna stand for Ukraine, if you wanna defend the Ukrainian people, because when we were giving Ukrainians the military aid that they needed, they were winning. They're still winning, but in a very big way, it's only when we stop passing the supplementals. So if you really, if we really want to do something, that's gonna help ukraine and that will show that the united states congress is for ukraine and its security and against we'd make sure that we put fifteen billion dollars of foreign military financing for ukraine in it and if we really care for the american people because when we look at the cost of living the cost of gas and we see what the tariffs have done we'd make sure that we don't give a president who calls himself the tariff man more tariff authority and more tariff power because he has told us he has shown us the moral power he tried to use it without the power so here's a way to go around it to say ok congress has now given me this power so i can do the tariffs that i wanna do for whatever reason i want them to be done

Rep. Scanlon (PA-5)3:17:41 – 3:18:05

well i appreciate your thoughtful analysis on it and i i do want to see congress standing up for ukraine um but i think there is some real serious problems with this bill and and some of the amendments you've proposed would um go a long way towards broadcasting our support for ukraine without uh recreating many of the problems we've seen with the president blowing hot and cold on russia every other day

Rep. Meeks (NY-5)3:18:05 – 3:18:06

thank you

Rep. Scanlon (PA-5)3:18:06 – 3:18:07

so thank you i yield back

Rep. Foxx (NC-5)3:18:09 – 3:18:13

thank you miss ganlin miss fischbach you're recognized

Rep. Scanlon (PA-5)3:18:12 – 3:18:13

i am back

Rep. Foxx (NC-5)3:18:14 – 3:18:18

ok uh miss eliza fernandez you're recognized

Rep. Leger Fernandez (NM-3)3:18:18 – 3:20:24

thank you i i wanna thank you uh ranking member uh cause i know you have uh been out there uh in support of ukraine and against the russian aggression that we've seen and so i know i know that you are bringing that heartfelt support for ukraine into this room today and the issues that you have raised could be fixed that's why it is so frustrating to see uh the reluctance to actually take up some of these amendments that you've suggested that we'll be hearing later today uh and i see that of uh steny hoier has been here because he has been such a steadfast supporter of ukraine and it just brings back to the conversation we had earlier about russian oligarch umar kremlin who spent hundreds of thousands of dollars on don trump junior's wedding private island commendations a seventy thousand dollar fireworks display you know and now donald trump junior's wife would say no he's just been a generous friend uh you know i i i'm starting to call this kind of corruption that we are seeing gold-colored corruption cause we've never seen it at this level before where you have thousands of dollars and millions of dollars flowing to this presidency in exchange for what and so it raises the issue of the waivers uh that uh my colleague brought up because sometimes sometimes foreign influence uh most of the times it doesn't come it doesn't come in a suitcase filled with crash it comes in lots of different ways including this hundreds of thousand dollars spent on the president's son's wedding. And the president, Trump, under this bill could say, oh, I'm gonna waive sanctions against this particular regard. And we would never have to have any explanation for that. Is that right? Am I reading this bill correctly?

Rep. Foxx (NC-5)3:20:24 – 3:20:27

No, you you you're absolutely uh reading it correctly.

Rep. Meeks (NY-5)3:20:28 – 3:23:30

Um, let me just say this. so that i'm clear i believe that everybody in this room and i know mister mccall cares about ukrainian people i mean this gentleman that you talked about he's been sanctioned by russia i mean he's been sanctioned by ukraine he's been sanctioned by ukraine for taking ukrainian children i don't know if that's the kind of friend you want but based upon the president's daughter-in-law, he's just being a nice general generous person, but it then raises the question would that person be sanctioned? Look, if we wanna do something for Ukraine and we don't wanna hurt the American people, and I've tried to just be why can't we negotiate something? Why can't we just work together? That's the process. Now, I know that we had the unfortunate passing of Mister Graham. But we just can't pass a bill because Mister Graham passed and this was something that he wanted. We need to examine it and we have the responsibility and our house to examine those bills, just as the Senate, I assume, examines, but maybe based upon what Mister Norman says with his bills, they don't Examine our bills at all that go over there. But I think we have that responsibility. And I don't know of anyone, if you really want to support Ukraine. Why can't we make it clear that Europe can't be terrified? The Europeans have stepped in the gap. They've been giving, when we stopped giving to Ukraine, when the president said that the it's up to the Europeans to do it they stepped up and to put it where they could be tariffed we as a congress should not let that happen we should make sure that anything we pass explicitly says that europe can't be testified and that's why it's one of my amendments that's for the sake of ukraine and our european allies why can't we have a stronger waiver i wanna make sure and we all in congress that care about ukrainians wanna make sure that those people who are violating and and supporting russia that they are in fact punished so if you for your ukraine how can you be against stronger waivers particularly when you see that the president has removed waivers or sanctions from russia already

Rep. Foxx (NC-5)3:23:30 – 3:23:31

mmm

Rep. Meeks (NY-5)3:23:32 – 3:25:11

we are supposed to be an equal but separate branch of government not just do what the executive branch says so i could make an argument that no matter who the president was whether the democrat or republican president these are the things that we should be insisting i can recall how actually me and mister mccall collectively in the biden administration was trying to say give ukraine long range missiles attack them uh i could have easily said no i'm not gonna do that but i cared about ukraine and i argued with the administration they should have long range missiles because i really wanna make sure that we're doing the right thing for the ukrainian people cuz they are fighting for their very democracy and survival. So why, it's just a few simple things that I think every person who really supports Ukraine would want. Europe can't be tar- tariffed, a stronger waiver, and put our money where our mouth is, just fifteen billion dollars for foreign military financing, so that they can stop these bombs that Russia keeps bombing them, day after day after day and then protect the american people from tariffs that this president has put on us simple things so if we care about the economy and our american people take the tariffs out if we care about ukraine

Rep. Foxx (NC-5)3:25:12 – 3:25:13

mmm

Rep. Meeks (NY-5)3:25:13 – 3:25:20

give them money if you care about our allies who are supporting ukraine make sure they can't be tariffed

Rep. Leger Fernandez (NM-3)3:25:22 – 3:25:23

three simple things

Rep. Meeks (NY-5)3:25:23 – 3:25:27

very simple pro-ukrainian and pro-american

Rep. Leger Fernandez (NM-3)3:25:28 – 3:25:30

thank you very much uh ranking member and i yield back

Rep. Foxx (NC-5)3:25:31 – 3:25:35

thank you miss leger fernandez mister jack

Rep. Jack (GA-3)3:25:35 – 3:25:35

my pleasure

Rep. Foxx (NC-5)3:25:36 – 3:26:47

ok uh miss houchen i believe gentlemen that that um concludes uh the questions that the rules committee has for the two of you um i thank you very much for being here and um there being no further questions you're excused mister hoyer um as these gentlemen leave um please come to the table to discuss your amendment i think you know the drill we ask you to submit your written statement and we ask you to keep your comments to five minutes

Rep. Hoyer (MD-5)3:26:56 – 3:27:11

Now it's on. Um, I can certainly comply with the first request easily. The second request after two hours of, uh, discussion on this issue is much harder to meet. But I will try.

Rep. Foxx (NC-5)3:27:14 – 3:27:17

There is a difference between trying and doing, Mister Hoyer.

Rep. Hoyer (MD-5)3:27:17 – 3:37:00

I understand that. That's why I didn't commit to doing. But maybe you will gavel me down. My t- my statement is relatively short. The discussion of this is much more complicated. Nobody in this House believes that I am a, uh, defender of Donald Trump's failure to address this issue head-on and effectively. No one has opposed his tariff policies any more than I have. Uh, they have been harmful to the American people, harmful to our relationship in the international community. Madam Chair and ranking member of my government distinguished members of the committee my amendment's meant to address an issue of concern for many members about this bill a lot of what we've heard in this debate is about affecting other countries than are set forth in the formula in the and those countries are limited by the bill to being impacted. However, none of us on our side trust Donald Trump to be bound by the structures of legislation or of the Constitution of the United States. That's not why I cosponsored this bill, because I had some trust in Donald Trump. who I think uh is far more partial uh to Russia than he is to Ukraine. That's a tough statement, but I think that's borne out by conduct. I support ranking members um makes his numbers three, four, and five amendments. I think they strengthen the bill, I give I think they give more confidence uh to people. I do not support his removal of the tariffs. Not because I'm for the tariffs, uh, although I think the tariffs will have some prophylactic effect on some of those named countries of which there are now ten. There used to be nine, but they st- stuck to they struck two of the stands and counted it as two rather than one. Eighty-six senators supported this bill because they thought it would help Eighty-seven Senators support the bill now because McC- Mister McConnell has come back and he supports the bill. My amendment simply states the ten countries that will be affected, which will meet most of the uh uh uh uh uh opposition that was articulated, I think, by correctly by Mister Meeks because we have seen the President go far beyond his legal strictures. Nothing we do to pass this bill or defeat this bill will adversely affect his inclination to do just that. If we don't pass this bill, it's not going to affect the President at all. Specifically, it tightens the scope of the legal tariff authority by naming the countries, as I said. I agree with the administration we ought to pass this bill. It's a marker. It's a " you said this". Now the Russians lied in uh in Budapest when they said they were going to take the nuclear weapon to ninety-four, and honor the boundaries of Ukraine. They lied. The Russians lie regularly. I agree with the administration, uh, that we ought to have sanctions. Our experience is, the President does not put sanctions on Russia or Belarus or others. That is unfortunate. The last time we acted on Ukraine, was April twentieth, twenty, twenty four. Two years and nine months ago. This bill would prevent manipulation of data, uh, on oil and gas imports as well as sanctions of Asians in order to make them qualify or not. That language is pretty specific. It says no country that does not qualify for the formula. What we don't trust is the formula. Which is why we need to name the countries. So that we acting in our constitutional responsibility do in fact give authority for those n- or t- nine or ten countries, the two stands uh being the tenth. And that he would have to come back if he wanted to add another country. He doesn't want to do that. And so, unfortunately, after talking to the White House, they don't want that amendment. It does not change the substance of the Bill-One iota if you believe that the formula will be honored by the President of the United States. Period. I believe the change sufficiently addresses the concerns that have been raised and I hope we can adopt it so the House can move forward on a strongly bipartisan basis with passage of this bill. My friend, Mr. Meeks, who co-sponsored the Iran uh support act with me. We introduced it together. As a matter of fact, I urged him to do that with me. It was a strong bill. I wished the House- Senate would pass it. It won't. And if it did pass it, the President would veto it. The President won't veto this bill. And once he signs onto it, we can say, you said you would do this. Does that mean anything? Perhaps not. I urge the committee to include my amendment to the rule bringing the bill to the floor. I absolutely agree with the statement made in the report of Mr. Meeks and Mr. Neal. Here's what they said. "We firmly support Ukraine in its fight against Russia's brutal unjustified invasion." And then they said, Ukraine's victory against Russian aggression is critical to the U. S. national security. I think we all believe that. I hope the President believes it. But whether this bill passes or not will not affect the President's view one way or the other. What will it will affect is a statement by the Congress of the United States is, this is what ought to happen. Sanctions ought to be imposed. Tariffs ought to penalize countries who are funding Russia's ability to make war. We now have a department of war. How ironic. I urge the committee to make in order amendments that will facilitate the actions of the Congress of the United States to act nearly unanimously, which will send a strong, powerful message. But if we do not pass this bill, there will be great joy in the Kremlin, and great devastation in Kiev, who will see something that they thought they had in hand, a strong statement by the United States of America Congress. disappear because of a fight over tariffs. Their morale will tank. And we will be still, since April twenty-four, having not taken the action, I'm for giving them fifteen billion dollars. I'm for putting on sanctions. But we need to pass something, and none of you believe in the next two years, we're going to be able to pass things, whether we take the majority or not, that the President can't veto and that we could override. The Chairman, the Ranking Member, and I'll close with this, Madam Chair, the Ranking Member said this may be a Chamberlain-Churchill moment. I agree with him. However, I believe that he chose this to be a Churchill moment rejecting this legislation. I believe it will be a Chamberlain moment where will we leave unstated the policy of the Congress of the United States and allow the President's actions to be the only voice that is being heard. That is not in the best interest of our country, of Ukraine, of international law and peace and freedom. I thank you for the time.

Rep. Foxx (NC-5)3:37:01 – 3:37:04

thank you mr. hoyer miss fischbach you're recognized

Rep. Fischbach (MN-7)3:37:04 – 3:37:05

uh you're playing your questions

Rep. Foxx (NC-5)3:37:05 – 3:37:07

thank you mr. uh mcgovern

Rep. McGovern (MA-2)3:37:07 – 3:38:11

uh well i wanna thank uh mr. hoyer for his uh eloquent and powerful statement that nobody has been a greater champion uh for ukraine than he has been and um uh and i and i i and i appreciate i know the ukrainians appreciate it um i think his suggestion of altering this bill um is a good one um cause it would i think it would gain more uh more support um i my sense is that this bill passes no matter what uh but um you know i think a lot of us who um who support ukraine who have supported appropriations for ukraine consistently and will and would support its supplemental which is which is vital um you know i mean i there are some other issues here that um that quite frankly i do think are important um and i'm uh and i i appreciate the power of making statements Um, but I also think that at this point we have to do more than statements, we have to have real action that makes a real difference here. Um, so I'm not, you know, I'm not here to

Rep. Hoyer (MD-5)3:38:11 – 3:38:12

Would the gentleman yield?

Rep. McGovern (MA-2)3:38:12 – 3:38:13

uh, be happy to yield.

Rep. Hoyer (MD-5)3:38:14 – 3:38:19

Uh, what do you think the prospects are of passing legislation that you and I would like?

Rep. McGovern (MA-2)3:38:20 – 3:38:23

On on on this or on the supplemental you're talking about?

Rep. Hoyer (MD-5)3:38:23 – 3:38:23

On on this.

Rep. McGovern (MA-2)3:38:24 – 3:38:26

Uh, I mean, I would like to think that they're good.

Rep. Hoyer (MD-5)3:38:26 – 3:38:27

Yeah, I would hope.

Rep. McGovern (MA-2)3:38:27 – 3:39:15

I would like to think that they're good. I think we c- I mean, I think there's a there's an opportunity for people to come together um uh and um uh but but i i don't wanna under um sell the concern about the tariffs i went and in in my statement i went through a litany of examples where the president i think has abused that authority um and has i and has reversed tariffs based on what he has received in terms of financial gain which i think is corruption Um, and so, uh, so I mean, again, that, that these two issues are in the same bill I think is unfortunate. But, um, in any event, um, I appreciate you being here and I hope in fact there will be an opportunity to offer a memos on the floor. Uh, you're back.

Rep. Hoyer (MD-5)3:39:16 – 3:39:17

Thank you, Mr.

Rep. Foxx (NC-5)3:39:17 – 3:39:24

Thank you, Mr. McGovern. Uh, Mr. Jack, you're recognized. No questions. Miss Candler.

Rep. Scanlon (PA-5)3:39:25 – 3:39:37

I just wanted to reiterate, uh, Mr. McGovern's, um, praise for your unflinching support for Ukraine. I know my constituents and we have a significant Ukrainian American population in my district.

Rep. Hoyer (MD-5)3:39:37 – 3:39:38

I have very little.

Rep. Scanlon (PA-5)3:39:39 – 3:39:43

OK. We have very many. So thank you for your support.

Rep. Foxx (NC-5)3:39:46 – 3:39:59

Thank you, Miss Galen. Mister Norman, I apologize for skipping you. That that was that that was actually, how did you pass over Mister Norman? Miss He was hiding. Miss Ledger Fernandez.

Rep. Leger Fernandez (NM-3)3:40:00 – 3:40:10

Thank you, thank you, everything, thirty-eight hours, but you didn't have to do anything.

Rep. Hoyer (MD-5)3:40:11 – 3:41:29

I I thank you for that comment. I don't want to be too dramatic, but as we sit here in this room, people are being bombed in Ukraine. Uh, people on the front lines who have been there for two, three, four years, some. I wrote a comment that Mister Meek said, uh, Ukraine is looking for hope in response to why they came here on this bill. There is no doubt about that, that they're looking for hope. They haven't gotten much from this administration. I think this bill is one way to give that hope. I don't know that it gives action, which frustrates me. I don't know that it gives the action that we think would be effective in rolling Russia back. But I do know that nothing will happen if this bill fails. I thank you.

Rep. Leger Fernandez (NM-3)3:41:30 – 3:41:32

Thank you for that. I mean, I have a fact,

Rep. Foxx (NC-5)3:41:31 – 3:41:32

I

Rep. Leger Fernandez (NM-3)3:41:32 – 3:41:40

I would point out that I think that it's a more than one way to put it, but I don't Home president when he didn't think of, or Democratic president when he didn't do that much,

Rep. Hoyer (MD-5)3:41:39 – 3:41:40

Yeah, I I

Rep. Leger Fernandez (NM-3)3:41:41 – 3:41:41

but uh

Rep. Hoyer (MD-5)3:41:41 – 3:41:42

Remember, I'm

Rep. Leger Fernandez (NM-3)3:41:42 – 3:41:44

I would love to see Republicans be critical of

Rep. Hoyer (MD-5)3:41:44 – 3:41:48

Remember I mention mentioned twenty four.

Rep. Leger Fernandez (NM-3)3:41:46 – 3:41:47

Trump. Are you okay?

Rep. Hoyer (MD-5)3:41:50 – 3:41:51

You remember who was president in twenty four.

Rep. Foxx (NC-5)3:41:56 – 3:41:58

Mister Scott, you're recognized.

Rep. Scott (GA-8)3:41:58 – 3:42:17

Ma- Madam Chair, uh, I I don't have any questions. Thank you for bringing the amendment. Um, it seems to me that we can accept what we have and get sanctions on Russia. Um, but if we send it back to the Senate, then those sanctions probably don't don't happen. So, I'm happy to go with the bill that we have.

Rep. Foxx (NC-5)3:42:21 – 3:42:24

You you're back. Ms. Halter, you're recognized.

Rep. McGovern (MA-2)3:42:26 – 3:42:30

Madam Chair, just a question. Is isn't the Senate going to be in for another two more weeks?

Rep. Scott (GA-8)3:42:31 – 3:42:31

Mm-hmm.

Rep. Foxx (NC-5)3:42:31 – 3:42:31

Yes, sir.

Rep. McGovern (MA-2)3:42:31 – 3:42:33

Yeah, so it's yeah, OK, so there's time.

Rep. Foxx (NC-5)3:42:32 – 3:42:32

I believe so.

Rep. McGovern (MA-2)3:42:33 – 3:42:35

Alright, thanks. I'll get back.

Rep. Hoyer (MD-5)3:42:36 – 3:42:38

I can I can I just say

Rep. Foxx (NC-5)3:42:36 – 3:42:36

Thank you.

Rep. Hoyer (MD-5)3:42:39 – 3:42:54

uh to Mister Scott, my amendment does not change the substance of the bill at all. The White House, the Senate, and the House all agree that the nine countries or ten countries now, because they've split split the stands,

Rep. Foxx (NC-5)3:42:54 – 3:42:54

Mm.

Rep. Hoyer (MD-5)3:42:55 – 3:43:16

are the ones being impacted by the formula in the bill. The problem uh we have is that without naming the countries, it is clear that Mister Meeks and many others are concerned that they will take that formula the administration and use that to adversely impact a lot of other countries

Rep. Foxx (NC-5)3:43:16 – 3:43:19

that are not intended to be impacted by this bill.

Rep. Scott (GA-8)3:43:21 – 3:43:25

I I don't necessarily disagree with your intent, Mister Hoyer. I respect you, appreciate you, Madam Mayor.

Rep. Foxx (NC-5)3:43:25 – 3:43:29

Thank you. Thank you, Mister Hoyer.

Rep. Scott (GA-8)3:43:29 – 3:43:30

I'll expect the

Rep. Foxx (NC-5)3:43:29 – 3:43:31

I appreciate your coming.

Rep. Scott (GA-8)3:43:31 – 3:43:33

I'll expect to be able to vote on the amendment.

Rep. Hoyer (MD-5)3:43:38 – 3:43:41

Yeah, right. Oh, William's in turn, which is why I'm here.

Rep. Foxx (NC-5)3:43:43 – 3:43:46

Is there anyone else seeking to testify on today's

Rep. Fischbach (MN-7)3:44:01 – 3:47:39

Thank you. Madam Chair, Madam Chair. I move the committee grant H R ninety five seventy six, the National Fraud Enforcement Division Act of twenty twenty six, a closed rule. The rule waives all points of order against consideration of the bill. The rule provides that an amendment in the nature of a consisting of the text of the rules committee print one nineteen dash forty one shall be considered as adopted and the bill as amended shall be considered as read. The rule waives all points of order against provisions in the bill as amended. The rule provides one hour of general debate equally divided and controlled by the chair and the ranking minority member of the committee on the judiciary or their respective designees. The rule provides one motion to recommit. The rule further provides for consideration of hr one zero three s two six the proof act under a closed rule the rule waives all points of order against consider consideration of the bill the rule provides that the bill shall be considered as read the rule waives all points of order against provisions in the bill the rule provides one hour of general debate equally divided and controlled by the chair and the ranking minority member of the committee on the judiciary or their respective designees the rule provides one motion to recommit The rule further provides for consideration of H. J. Res. two ten, providing for congressional disapproval under chapter eight of the of title five, United States Code of the rule submitted by the Environmental Protection Agency, relating to California state non-road engine pollution control standards, ocean going vessels at birth, notice of decision under a closed rule. The rule waives all points of order against consideration of the joint resolution. The rule provides that the joint resolution shall be The rule waives all points of orders against provisions in the joint resolution. The rule provides one hour of general debate, equally divided and controlled by the chair and ranking minority member of the Committee on Energy and Commerce or their respective designees. The rule provides one motion to recommit. The rule further provides for consideration of H. J. Rez two thirteen, providing for congressional disapproval under chapter eight of title five, united states code of the rule issued by the environmental protection agency relating to the california state nonroad engine pollution control standards commercial harbor craft regulations uh notice of decision under a closed rule the rule waives all points of order against consideration of the joint resolution the rule provides for the joint resolution shall be considered as read the rule waives all points of order against against provisions in the joint resolution. The rule provides one hour of general debate, equally divided and controlled by the chair and ranking minority member of the committee on energy and commerce or their respective designee. The rule provides one motion to recommit. The rule further provides for the consideration of the Senate amendments to HR fifty three thirty four the Lindsey O. Graham sanctioning Russia and Iran Act of twenty twenty six. The rule makes in order a single motion offered by the chair of the committee foreign affairs or his designee that the chair that the house concur in the senate amendments to hr fifty three thirty four. The rule waives all points of order against consideration of the senate amendments and the motion. The rule provides that the senate amendments and the motion shall be considered as read. Finally, the rule provides one hour of debate on the motion equally divided and controlled by the chair uh and ranking minority member of the committee on foreign affairs, or their respective designees.

Rep. Foxx (NC-5)3:47:41 – 3:47:48

Thank you, Miss Fischbach. You have now heard the motion. Is there any discussion or amendment to the rule?

Rep. McGovern (MA-2)3:47:48 – 3:47:49

Madam Chair.

Rep. Foxx (NC-5)3:47:49 – 3:47:49

Mister McGovern.

Rep. McGovern (MA-2)3:47:49 – 3:50:25

Yeah, so we have a total of three amendments, I've told my colleagues, so we should um I have an amendment to the rule, I move the committee make an order amendment number two, to the Senate amendments to HR five three three four, offered by ranking member Meeks, which would strike the section of the legislation authorizing broad secondary tariffs. uh madam chair um senator ram paul a republican from kentucky said that this bill will likely be the largest tax increase ever passed by a republican congress and cost the american people half a trillion dollars end quote the american people have had enough of the tariffs and the trade wars which have caused them to pay thousands of dollars more for everything trump has abused every single tariff law on the books he has caused americans to pay more for gas and groceries he has attacked our allies while waiving tariffs in exchange for gifts and golf course deals president literally just removed tariffs on irish whiskey because ireland agreed to host a golf tournament at one of trump's resorts and at the same time he's jacking up tariffs on everyday goods from canada one of our closest allies because he's mad about wildfire smoke or because canada won't become part of the united states uh and now the republicans wanna give the president more tariff powers i mean uh this is crazy uh do you want your last vote before the midterms to be letting trump raise costs even more um and if you think this is as misguided as i do you'd vote yes on my motion now let me just finally say this uh uh again i support ukraine i have supported every appropriations bill to help aid ukraine and i will continue to do so um i think that is the right thing for all of us to do that is a real action a consequential action i don't trust this president uh to respect the sanctions that are being uh that are being required under this bill i i don't i i expect i i wouldn't trust i wouldn't put it past them to waive them or not implement them uh i think we can do better uh and i think putin is a bad guy and i uh that's an understatement um that this president somehow seems enamored with and i take a backseat to no one when it comes to speaking up for human rights on behalf of russia's victims in fact i don't know whether there's anybody else in this committee room uh that has been sanctioned by russia as i have been uh i'm not allowed to step foot in the country because of the because of the uh uh cause of what i have done uh on the magnitsky act so i i i i take a backseat to nobody but this is this is not really helping ukraine the way it is written and i hope my uh amendment will be made in order

Rep. Foxx (NC-5)3:50:26 – 3:50:37

thank you mr. mcgovern Any further discussion on the amendment from Mister McGovern? Hearing none, the question is on the amendment. All those in favor signify by saying aye.

Rep. McGovern (MA-2)3:50:37 – 3:50:38

Aye. Aye.

Rep. Foxx (NC-5)3:50:38 – 3:50:43

Those opposed say no. No. In the opinion tree of the no's having,

Rep. McGovern (MA-2)3:50:40 – 3:50:40

No.

Rep. Foxx (NC-5)3:50:43 – 3:50:44

the amendment's not agreed to.

Rep. McGovern (MA-2)3:50:44 – 3:50:45

As for roll call.

Rep. Foxx (NC-5)3:50:45 – 3:50:48

Mister McGovern requests a roll call. The clerk will call the roll.

Clerk3:50:48 – 3:50:49

Mrs. Fischbach,

Rep. McGovern (MA-2)3:50:49 – 3:50:49

No.

Clerk3:50:49 – 3:50:51

Mrs. Fischbach, no, Mister Norman,

Rep. McGovern (MA-2)3:50:51 – 3:50:51

No.

Clerk3:50:51 – 3:50:59

Mister Norman, no, Mister Roy, Mrs. Howchin, Mrs. Howchin, no, Mister Langworthy, Mister Scott. mr. scott no mr. griffith no no mr. griffith no mr. jack no mr. jack no mr. mcgovern

Rep. McGovern (MA-2)3:50:59 – 3:51:00

aye

Clerk3:51:00 – 3:51:05

mr. mcgovern i am a scanlon aye i'm a scanlon i am a mr. neguse i'm a senator fernandez aye senator fernandez i am madam chair

Rep. Foxx (NC-5)3:51:06 – 3:51:07

no

Clerk3:51:07 – 3:51:07

madam chair no

Rep. Foxx (NC-5)3:51:09 – 3:51:10

clerk will report the total

Clerk3:51:10 – 3:51:12

three yeas seven ace

Rep. Foxx (NC-5)3:51:12 – 3:51:21

um the no's have it the amendment is not agreed to is there further uh discussion or amendment

Rep. McGovern (MA-2)3:51:20 – 3:51:45

madam chair i have an amendment to the rule i move the committee um uh make uh i i i move the i move the committee uh number one to the senate amendment to hr fifty three thirty four offered by representative hoyer we we just heard mr. hoyer's testimony um i hope everybody could agree that at least we we should make this in order so we can debate it um and with that i yield back

Rep. Foxx (NC-5)3:51:47 – 3:51:53

is there any further discussion on the amendment from mr. mcgovern miss camden

Clerk3:51:53 – 3:51:53

no

Rep. Foxx (NC-5)3:51:55 – 3:52:00

hearing none the question is on the amendment all those in favor signify by saying aye

Rep. McGovern (MA-2)3:52:00 – 3:52:01

aye aye

Rep. Foxx (NC-5)3:52:01 – 3:52:02

those opposed say no

Rep. McGovern (MA-2)3:52:02 – 3:52:03

no

Rep. Foxx (NC-5)3:52:03 – 3:52:06

no in the opinion share the no's have it the amendment is not agreed to

Rep. McGovern (MA-2)3:52:06 – 3:52:07

ask for a roll call

Rep. Foxx (NC-5)3:52:08 – 3:52:11

the mister mcgovern requests a roll call the clerk will call the roll

Clerk3:52:11 – 3:52:12

mister fischbach

Rep. McGovern (MA-2)3:52:12 – 3:52:12

no

Clerk3:52:12 – 3:52:15

mister fischbach no mister orman mister orman no mister roy

Rep. McGovern (MA-2)3:52:14 – 3:52:14

no

Clerk3:52:15 – 3:52:18

mister sojourner mister sojourner mr. langworthy mister scott

Rep. McGovern (MA-2)3:52:16 – 3:52:19

no no

Clerk3:52:19 – 3:52:20

mister scott no mister griffith

Rep. McGovern (MA-2)3:52:20 – 3:52:21

no

Clerk3:52:20 – 3:52:23

mr. griffith no mr. jack mr. jackson i'm mr. mcgovern

Rep. McGovern (MA-2)3:52:23 – 3:52:24

aye

Clerk3:52:24 – 3:52:27

mr. mcgovern i am miss ganland miss ganland i am mr. neguse miss leicester fernandez

Rep. McGovern (MA-2)3:52:25 – 3:52:28

aye aye

Clerk3:52:28 – 3:52:30

miss leicester fernandez aye madam chair

Rep. Foxx (NC-5)3:52:30 – 3:52:30

no

Clerk3:52:30 – 3:52:31

madam chair no

Rep. Foxx (NC-5)3:52:32 – 3:52:34

the clerk will report the total

Clerk3:52:34 – 3:52:35

three a's seven a's

Rep. Foxx (NC-5)3:52:36 – 3:52:43

the no's have it the amendment is not agreed to it sir mr. miss ganland you're recognized

Rep. Scanlon (PA-5)3:52:43 – 3:53:39

thank you madam chair i have an amendment to the rule i move the committee make an order amendment four to the senate amendments to hr fifty offered by ranking member Meeks, which would change the waiver standard in the bill such that sanctions could only be waived against Russia or its enablers if doing so would be vital to the national security of the United States. In its current form, the bill before us would grant the president almost unlimited authority to waive sanctions with essentially no accountability to Congress. We've already seen the president roll back sanctions on Russian oil, when it suited his personal or political goals earlier this year, and we can be reasonably sure that he'll do it again if given the opportunity. Congress needs to set strong guardrails to ensure that the President carries out the intent of Congress. Uh, this amendment is a crucial step to achieving that goal, so I urge a yes vote on this amendment and I yield back.

Rep. Foxx (NC-5)3:53:41 – 3:53:50

Is there further discussion on the amendment from Miss Galen? hearing none the questions on the amendment all those in favor signify by saying aye

Rep. Scanlon (PA-5)3:53:50 – 3:53:50

aye

Rep. Foxx (NC-5)3:53:50 – 3:53:52

aye those opposed say no

Rep. Scanlon (PA-5)3:53:52 – 3:53:53

no

Rep. Foxx (NC-5)3:53:53 – 3:53:57

in the opinion true the no's have it Miss Ganelon requests a recorded vote the clerk will call the roll I'd be I'd be Mr. Recorder

Clerk3:53:59 – 3:54:00

Mrs. Fischbach

Rep. Scanlon (PA-5)3:54:00 – 3:54:01

no

Clerk3:54:00 – 3:54:06

Mrs. Fischbach no Mr. Orman Mr. Orman no Mr. Roy Mr. Saucon Mr. Saucon no Mr. Langley Mr. Scott

Rep. Scanlon (PA-5)3:54:02 – 3:54:07

no no

Clerk3:54:06 – 3:54:11

Mr. Scott no Mr. Griffith Mr. Griffith no Mr. Jack Mr. Jack no Mr. McGi- McGovern

Rep. Scanlon (PA-5)3:54:08 – 3:54:11

no no aye

Clerk3:54:11 – 3:54:15

Mr. McGovern aye and Miss Ganelon Miss Ganelon aye and Mr. Neguse Miss Ledger-Fernandez

Rep. Scanlon (PA-5)3:54:13 – 3:54:16

aye aye

Clerk3:54:16 – 3:54:18

Ms. Lettre-Fernandez aye Madam Chair Madam Chair no

Rep. Foxx (NC-5)3:54:17 – 3:54:21

no the clerk will report the total

Clerk3:54:21 – 3:54:22

three ayes seven ayes

Rep. Foxx (NC-5)3:54:23 – 3:54:40

the no's have it the amendment is not agreed to is there any other amendment or further discussion hearing no further discussion the question is on the motion from the general woman from minnesota all those in favor signify by saying aye

Rep. Scanlon (PA-5)3:54:40 – 3:54:41

uh

Rep. Foxx (NC-5)3:54:40 – 3:54:41

aye

Rep. Scanlon (PA-5)3:54:41 – 3:54:41

aye

Rep. Foxx (NC-5)3:54:41 – 3:54:43

those opposed say no

Rep. Scanlon (PA-5)3:54:43 – 3:54:43

no no

Rep. Foxx (NC-5)3:54:43 – 3:54:47

in the opinion chair of the i's have at the motions not agreed to

Rep. McGovern (MA-2)3:54:46 – 3:54:47

we have to roll call

Rep. Foxx (NC-5)3:54:47 – 3:54:52

uh mister mcgovern requests a roll call the clerk will call the roll

Clerk3:54:56 – 3:54:56

mrs. fischbach

Rep. McGovern (MA-2)3:54:57 – 3:54:57

yes

Clerk3:54:57 – 3:54:59

miss fischbach aye mr. norman

Rep. McGovern (MA-2)3:54:59 – 3:55:00

oh aye

Clerk3:55:00 – 3:55:02

mr. norman aye mr. roy mrs. howton

Rep. McGovern (MA-2)3:55:01 – 3:55:02

mrs. howton aye

Clerk3:55:02 – 3:55:06

mr. mrs. mrs. howton aye mr. langworthy mr. scott

Rep. McGovern (MA-2)3:55:06 – 3:55:06

aye

Clerk3:55:06 – 3:55:08

mr. scott aye mr. griffith

Rep. McGovern (MA-2)3:55:08 – 3:55:08

aye

Clerk3:55:08 – 3:55:09

mr. griffith aye mr. jack

Rep. McGovern (MA-2)3:55:09 – 3:55:10

aye

Clerk3:55:10 – 3:55:11

mr. jack aye mr. mcgovern

Rep. McGovern (MA-2)3:55:11 – 3:55:12

no

Clerk3:55:11 – 3:55:18

sir macguffin no miss calendin miss calendin no mr. neguse miss ledger fernandez miss ledger fernandez no madam chair

Rep. Foxx (NC-5)3:55:18 – 3:55:19

aye

Clerk3:55:19 – 3:55:19

madam chair aye

Rep. Foxx (NC-5)3:55:21 – 3:55:23

the clerk reports a total

Clerk3:55:23 – 3:55:24

seven yeas three nays

Rep. Foxx (NC-5)3:55:25 – 3:55:32

the ayes have it the motion to report is agreed to uh representative fischbach will be managing this rule for the majority

Rep. McGovern (MA-2)3:55:33 – 3:55:34

and i will for minority rule

Rep. Foxx (NC-5)3:55:34 – 3:56:52

and mr. macguffin for the minority without objection well then i have a problem the committee is adjourned no ok no

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