▶ 0:12:29are happy.
▶ 0:13:11Heat. Heat.
▶ 0:18:18Heat. Heat.
▶ 0:20:24Heat. Heat. Heat.
▶ 0:21:18All right.
▶ 0:33:18Heat. Heat.
▶ 0:36:52Heat. Heat.
▶ 0:37:23Hallelujah. Hallelujah.
▶ 0:40:25Committee will come to order. Without objection, chair is authorized to declare a recess of the committee at any time. Without objection, all members shall have five legislative days within which to submit additional materials to the chair for inclusion in the record. A quorum being present, we will now proceed to today's business. I'd like to set out the schedule today so that everybody can plan accordingly. It's my intention to finish this mark up in one day. We will begin this morning and continue until debate concludes. We'll then recess briefly and reconvene for recorded votes.
▶ 0:40:56We will go until we finish our work. I now recognize myself for an opening statement. Good morning. Thanks all on both sides of the aisle for joining us today. Today we are undertaking the work assigned to us under the FY25 budget resolution that Congress adopted earlier this month. The resolution asked for us to find cost savings across our jur jurisdiction of no less than $1 billion.
▶ 0:41:21If the past is any evidence of prologue, we're going to be together for a while today. It's my hope that we can move through today as expeditiously as possible. But no matter how long it takes, we must remember why we are here. In a little over eight months, Americans are facing a looming tax increase. This is an irrefutable fact. If Congress fails to act, the Tax Cuts and Jobs Act provisions will expire.
▶ 0:41:49And when those expire, tens of millions of Americans, 62% of tax filers, accordingly, according to a recent study, will see their tax liability increase and their take-home pay decrease. In order to do this, Congress has assessed the fiscal position of our nation and found it wanting. As of today, we have 37 trillion in debt and paying billions of dollars in interest each day on that debt.
▶ 0:42:16In 2025, we'll spend almost a trillion dollars in total interest. This too is an irisputable fact. If Congress fails to act, our debt will continue to grow exponentially exponentially and spiral out of spiral out of control. For too long, government spending has always been a one-way ticket. At every opportunity, Congress has failed to make tough choices to manage our debt and get our fiscal house in order.
▶ 0:42:42For as long as I can remember, members of Congress have talked about managing the nation's fiscal situation so that they could pass off a healthy nation to their children and grandchildren. Well, I've got some bad news. The kids grew up and they are us. The crisis is no longer theoretical, off in some distant future. Past Congresses have failed to make tough decisions.
▶ 0:43:07So now the crisis is here confronting the very Americans that they failed to help. While almost every lawmaker bears some responsibility for our present predicament, the reckless, wasteful spending of the recent Biden Harris administration was a tipping point. Postcoid, we've had the opportunity to rein in federal spending and promote progrowth policies.
▶ 0:43:31Instead, the prior administration, believing it was heir to the FDR legacy, piled on trillions of dollars of new spending, new policies, new new activities, and resulting debt onto the public ledger. They did this, ironically, perhaps, by using the very same process that today we're trying to use to undo that damage, that is budget reconciliation.
▶ 0:43:57So, we're here today to finally do the difficult work of extracting our nation from this fiscal predicament. The committee will do its part today to reduce the deficit and decrease direct spending so that Congress can enact progrowth tax policies. I'm eager to get to work and finally tackle these issues. And remember, today we're here with one purpose, to do our part to put the nation back on a more sustainable, responsible fiscal trajectory.
▶ 0:44:25I yield back and I now recognize the ranking member, Representative Waters, for an opening statement. Uh thank you very much, Mr. Chairman, and uh I appreciate the survival kits uh that you have given to all of us this morning. We're all going to need it after today's hearing. Good morning. This week marks 100 days under the Trump regime, and it is impossible to ignore how badly Trump has tanked the economy.
▶ 0:44:53It was just reported that the American economy shrank 0.3% last quarter while Canada, Europe, and China all grew. President Biden handed Trump a booming economy that was growing at 2.4%. American families are feeling it, too. According to polling, 59% of Americans think Trump is worsening economic conditions.
▶ 0:45:2260% think Trump's policies have increased the cost of living and 70% are bracing for a recession. And as a result of Trump's tariff tax, which 64% of Americans disapprove of, we are indeed nearing a disastrous recession. Inflation is rising. Housing costs are soaring. The cost of living is skyrocketing. and families are taking out short-term loans to put food on the table.
▶ 0:45:52My Republican colleagues are feeling anxiety at town halls from constituents who are angry that Trump and Republicans have broken their promises. Unlike some, I'm not afraid to hear from my own constituents. Over the re April recess, I held four town halls and the message was clear. Trump's administration is a disaster. Enough is enough. Now is a time for Congress to step up.
▶ 0:46:21Instead, uh, committee Republicans are co-signing this destruction and helping Trump and co-president Elon Musk dismantle the agencies responsible for helping bring down costs, including the Consumer Financial Protection Bureau. Today, they are slashing the bureau's budget by 70%.
▶ 0:46:44This is ridiculous because the bureau has saved American consumers $21 billion by returning to them funds that big banks and predatory lenders swindled out of them. From cracking down on illegal junk fees, tackling discrimination in housing, and protecting service members and students from scams, the bureau and his hardworking employees work.
▶ 0:47:09The Republican attack on the CFPB is about tax breaks for the billionaires who put Trump in office. Just like Republicans who will be cutting Medicaid to lower taxes for Mark Zuckerberg, we're cutting our financial regulators to help out Jeff Bezos. It would be comical if it wasn't true. What is funny is the utter lack of accountability that Republicans are demanding.
▶ 0:47:38If Obama had pulled 1% of what Trump has, subpoenas would be flying left and right. Instead, Chairman Hill has refused to require acting CFPB director of art to get answers. This is basic oversight. That's why last month I led committee Democrats in introducing a resolution of inquiry to investigate the CFPB shutdown.
▶ 0:48:03Unfortunately, House Republicans were so scared to hold Trump accountable that they changed the rules and Chairman Hill won't bring up my resolution today. Republicans are also pushing to gut the Financial Stability Oversight Council and Treasury's Office of Financial Research Agencies designed to prevent another financial crisis like in 2008.
▶ 0:48:28They are eliminating funding for affordable housing construction despite a national homelessness crisis. And they are so desperate to do Trump's bidding that they're eliminating another agency that doesn't cost taxpayers anything. The public company Accounting Oversight Board, which oversees auditors to prevent frauds like Enron, and ensure that companies control by Chinese Communist Party are on the up and up.
▶ 0:48:58But as we discuss the horrible state of the economy under Trump, we cannot ignore how he is dismantling our democracy. He's arresting judges, disappearing legal residents, deporting American citizens, even children, targeting universities and law firms, weaponizing government agencies, and attacking the free press and free speech itself.
▶ 0:49:22We've got to call this what it is, a coupeta and the makings of an authoritarian government, and act now to stop it. I yield back the balance of my time, and I have a parliamentary Gentle woman's rec gentleoman yields back. Gentleoman's recognized for her parliamentary inquiry. I would like to inquire as to when you plan to bring up my resolution of inquiry HR res 259 for consideration before the committee.
▶ 0:49:50As you know, you have postponed consideration of the resolution for two markups now. My resolution seeks basic information about what's your what is what's your parliamentary inquiry? My resolution seeks basic information about Elon Mus's Doge, Minions, CFPB systems and data access. What's the gentle woman's parliamentary inquiry, please? Which includes the most personal and sensitive data on Americans and American businesses, whether any of the statutory requirements to provide them with that access and what?
▶ 0:50:21The gentleoman is out of order. The gentleoman has asked a parliamentary inquiry. We don't have don't need a talk. We need you to put in the right format your parliamentary inquiry, please. I move to postpone consideration of the resolution of inquiry until the next markup schedule by the chair. Is that a parliamentary inquiry?
▶ 0:50:44That's a that's I move it's a motion to postpone consideration of the resolution of inquiry until the next markup schedule by the chair. I I'm I don't believe that's a a motion that is appropriate. So I'll Mr. Mr. Chair, could I move to table one? Mr. Chair, please. I will challenge your uh conclusion that the motion is not in order. I move to postpone consideration of the resolution of inquiry.
▶ 0:51:15Is there a second next markup scheduled by the chair? Second. Uh Mr. Chairman, I did it has been moved. The gentleman gentleman, vice chairman, I have moved to request a table of motion. Gentleman moves to table the motion of Mrs. Waters. The motion to table is in order and it's not debatable. The question now should be the committee to table Mrs. Waters I. All those opposed please say no. No. In the opinion chair the eyes have it. The motion to table is not record.
▶ 0:51:44I request a recorded vote. A recorded vote is requested. A recorded vote has been requested. All those in favor recorded vote raise your hands. sufficient number having raised their hands recorded vote is so ordered. The question is on the motion to table. Clerk will call the role. Mr. Lucas. Yes. Mr. Sessions.
▶ 0:52:17Mr. Heisinga. Yes. Yes. Mrs. Wagner. I Bar. Mr. Williams. Mr. Emmer. Mr. Loudermilk. I Mr. Davidson. I Mr. Rose. Yes. Mr. Style. I Mr. Timonss. Hi. I Mr. Stzman. I Mr. Norman. I Mr. Muer. I Mrs. Kim.
▶ 0:52:49Donald's. Mr. Garberino. Mr. Fitzgerald. I Mr. Flood. Hi. I Mr. Lawler. I I Mrs. Miss Daily Cruz, Mr. Ogles. Hi, I Mr. Nun. Hi. I Mrs. Mlan, Miss Salazar, I Mr. Downing, hi. I Mr. Heridopoulos, Mr. Moore, I, Ranking Member Waters.
▶ 0:53:19Ranking member Waters, no. Miss Velasquez. No. Mr. Sherman. Mr. Meeks. Mr. Scott. Mr. Lynch. Mr. Green. Nay. Mr. Mr. Mr. Foster. Nay. Mrs. Batty. Mr. Vargas.
▶ 0:53:50No. Mr. Godheimer. Mr. Gonzalez, Mr. Casten, Miss Presley, Miss Talib, Mr. Torres, Miss Garcia. No. Miss Williams of Georgia. No. Miss Person, Mr. Fields, Miss Binham, Mr. Licardo?
▶ 0:54:20No. Mr. Chairman Mr. Sherman has not yet been recorded. Mr. Sherman has no ask who's not voted. Who has not yet been voted?
▶ 0:54:51Mr. Bar. Hi, Mr. Bard. I Mr. Garbino. Mr. A. Clerk will report.
▶ 0:55:26Mr. Chairman, the eyes's are 22 and the nazs are 10. Uh the a's the eyes have it and the motion to table is agreed to. Pursuant to notice, I call up the committee print. The clerk will report the print, copies of which were distributed in advance. Committee print providing for reconciliation. Without objection, the print is considered read and open to amendment at any point.
▶ 0:55:54I have an amendment in the nature of a substitute designated as reconciliation ANS01, copies of which have been distributed in advance. The clerk will report the amendment. Amendment to the committee print offered by Mr. Hill of Arkansas designated as RECC ANS01. Without objection, the amendment is considered read and will serve as base text for the purposes of the amendment. Uh Mrs. Waters, you've objected. I object. Um Mr.
▶ 0:56:24Chairman, uh given that you have not convened any hearings on several of the items been considered in the committee print one, I move to postpone consideration until the next Is there a second? Second. There's a second. Is there a motion to table? Mr. Chair, I vice chairman. Motion to table. Vice chairman makes a motion to All those in favor of tableabling Mrs. Waters motion should say I.
▶ 0:56:55I. Those who are opposed, no. No. In the opinion of the chair, the eyes have it and a motion to table is a great I request a recorded vote. Gentleoman requests a recorded vote. All those in favor of recorded vote, raise your hands. A sufficient number having raised their hand. A recorded vote is so ordered. The question is now on the motion to table. The clerk shall cause the role, but let's pause while the clerk uh loads the We're going to vote electronic.
▶ 0:57:44after this is a second first and All I want is an answer.
▶ 1:00:09M M Are you ready? We'll proceed to uh roll a vote. We'll be voting electronically. This is the motion to table Mrs. Waters objection to the and stand by here.
▶ 1:00:40The clerk will open the vote. All right, members may vote. That's a point of order. They can't object to table. We should do a point of order. That's what they did is wrong. I don't know what what you So Mr. Holland wanted a motion to table. That's right. That's not the correct You cannot do that. That's out of order.
▶ 1:01:09So this whole So you would be raising a point of order and saying right now. Right now. That's not the motion table's. Well, I'm trying to vote here. U Mr. Chairman, don't vote. Don't vote. Parliamentary inquiry. Point of order. Point of order. Point of order. Point of order. The motion table is not in order. Then we have to resend this vote. Yeah, this vote should not be a motion to table. Not in order.
▶ 1:01:43A motion. You're objecting because this motion to table is not in order and they're parliamentarian agree. Mr. Chairman, I object. Gentlewoman objects to this vote, but the chair rules uh out of order. We're going to continue with this vote. Mr. Heisen's Mr. Heisenga's motion table is not in order. Okay. Mr. Heisenga's table to motion is not in It's not It's not Let's pause.
▶ 1:02:15They have to resend this vote. That's right. It's not properly again. Let me let me overrule the gentlewoman's objection and we'll proceed with this vote. If you have not voted, we please invite you to vote now. This is the motion to table.
▶ 1:02:49Is any member who has not voted? Is there any member who wishes to change their vote? The clerk will report. Mr. Chairman, Mr. Chairman, on this vote, the eyes are 24 in the nation. The motion to table is successful. It's not agreed is agreed to. You need unanimous consent to overrule. I don't like this.
▶ 1:03:25The eyes have it. I'll now recognize myself for five minutes to discuss the ANS. I urge my colleagues to support the committee print before us. We're taking a strong step towards restoring fiscal discipline and ensuring government funding is used wisely and transparently. I'd like to remind my colleagues that all the provisions that we're considering today are strictly budgetary in nature.
▶ 1:03:55First, re-resend any remaining unobligated balances within the Department of Housing and Urban Development's green and resilient retrofit program that was created created under the inflation reduction act. Second, we're ending the PCAOB's authority to collect regulatory fees and transferring any unused balances to the Treasury. Audit oversight will continue without disruption.
▶ 1:04:23Thirdly, we're proposing a firm cap on the Consumer Financial Protection Bureau's budget, setting its funding at no more than 249 million for 2025 with a modest annual adjustment for inflation inflation going forward. Additionally, we're reigning in the CFPB's ability to carry over unused funds.
▶ 1:04:46unobligated balances will be limited and any excess will be returned to the treasury for the civil penalty fund. Once direct victims are fully compensated, remaining funds will be transferred to the treasury general fund where they can serve the broader interests of the American people.
▶ 1:05:05Finally, we will cap the assessments collected by the Office of Financial Research, aligning them with the average annual expenses of the Financial Stability Oversight Council over the past three years. Any surplus again once again will be returned to the Treasury to deliver on President Trump's agenda.
▶ 1:05:25And under the fiscal year 2025 concurrent budget resolution, House Republicans will reduce the deficit and exceed the $1 billion savings target outlined in the budget resolution. I look forward to our discussion today, and I yield back. Is there anyone seeking recognition to speak on the amendment and the nature of a substitute? Hearing no more requests to be recognized, we'll move on to amendments.
▶ 1:05:54Is there anyone wishing to offer an amendment to the substitute? I hear no amendments being offered to the amendment of a substitute. I have an amendment. The ranking member has an amendment at the desk. We'll pause while the amendment is distributed.
▶ 1:06:47Oh, we're going by the Yeah. Okay.
▶ 1:07:18Mr. Mr. Chair, I'd like to reserve a point of order. Uh, vice chairman reserves a point of order. The clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Waters of California designated as G02.
▶ 1:07:48Without objection, amendments is considered read and the gentleoman from California is recognized on her Chairman Hill, I sent a letter to you earlier this month asking that you join me in keeping hundreds of people in Arkansas housed by renewing funding for emergency housing vouchers.
▶ 1:08:09I was disappointed to not receive a response from you or your staff, but I ask that you join me today in urging committee Republicans to support my amendment that would fund emergency housing vouchers that have successfully ended homelessness for 60,000 people nationwide by getting them back into housing and connected to services to get them back on their feet long term.
▶ 1:08:37As you know, during the pandemic, I successfully secured $5 billion in the American Rescue Plan Act for the first of its kind bipartisan emergency housing voucher program to help rehouse individuals and families experiencing or at risk of homelessness, including survivors of domestic violence and victims of human trafficking.
▶ 1:09:03EHVS are unique in they provide administrative flexibility and higher payment standards. For example, homeless services providers have also applauded the success of the EHV program, stating that they have been effective in rehousing people experiencing homelessness thanks to the ability to cover moving costs, security deposits, and application fees through EHV flexibilities.
▶ 1:09:33As a result, we have successfully housed 71,000 homeless families since 2021. However, more funding is needed to continue housing families with EHVS until they can get back on their feet.
▶ 1:09:48We're facing one of the worst housing crisis in our nation's history with a chronic under housing, rents, and house prices that have increased by 50% and 60% respectively since 2019 under Trump's first administration. when house prices rose by double digits month after month.
▶ 1:10:12Meanwhile, a federal report found that for every $100 increase in rent, there is a 9% increase in homelessness. Indeed, as house prices continue to rise, we're seeing record levels of homelessness. Pulling the rug out from under 60,000 families who have finally been able to successfully escape homelessness is cruel. It is as simple as that. We have a unique opportunity to work together to end homelessness.
▶ 1:10:42Today, I implore my Republican colleagues to support my amendment. Uh, Mr. Chairman and members, I want you to know in Los Angeles County, in my own uh county, 70,000 people are on the streets every night unhoused. And in this country, there's 700,000 people who are on uh the street.
▶ 1:11:09And whether we're talking about Los Angeles County or New York, every member on this committee have problems with homelessness. You have problems with homeless. I'm making a special appeal uh to you. I'm making a special appeal uh to all of the members on both side of the aisles to deal with this homeless issue. You can do this by supporting my amendment.
▶ 1:11:32So I would respectfully ask that every member take the opportunity to send a message to your districts, to send a message across this country that we are committed to dealing with the homeless issue.
▶ 1:11:48that we are very concerned about homeless individuals, about children, about children sleeping in cars and unable to go to school uh prepared uh to do what is required of them as students because they've been sleeping in cars. They have not had breakfast. They don't have the clothes to wear. They don't have the shoes to wear. And so homelessness is a serious problem.
▶ 1:12:15And if we don't care about the adults, let's think about the children. Let's think about what the children are suffering in this country. This is America. This is not a third world country. This is America uh that is held up to be uh the leader of the world. And so how do we maintain our reputation? How do we maintain the work that has done been done by so many before us?
▶ 1:12:41If in fact we cannot take care of the homeless on the streets of America where people are stepping over bodies every day in every city, practically every county in this country. I yield back the balance of my time. Gentlewoman yields back. The clerk uh will redesate the amendment. I believe that the staff passed out the wrong amendment. We uh ranking members spoke on the proper amendment. Uh she was eloquent in her remarks.
▶ 1:13:09Uh but we want to make sure we have the right amendment designated. The clerk will Uh just just a moment. We're we're trying to clean up amendment to the amendment in the nature of a substitute to the committee print offered by Miss Waters designated as ehs n. Is that correct? Mr. Chairman, I request that I'm able to reread my amendment assess. No, no, no, no, no. It's it's this is with make sure the staff passes out the correct amendment.
▶ 1:13:43Mr. Chairman, All
▶ 1:14:13right. So, the gentlewoman has struck the last word and discussed her amendment to the amendment in the nature of a substitute. It's been properly designated by the clerk. All members have the copy of the of the proper amendment. Now, uh, the vice chairman has reserved a point of order. Is there anyone seeking to strike the last word on Mrs. Waters? Mr. Flood from Nebraska, you're recognized to strike the last word. Thank you, Mr. Chairman. Notwithstanding the amendment. Mr. Chairman, we still don't have a copy of the amendment.
▶ 1:14:43Democratic Park, could we make sure that Miss Garcia has the proper amendment? Mr. Chairman, the section that the ranking member is attempting to Could you uh move the microphone closer? We're having trouble hearing you, Mr. Flood. Thank you. Thank you, Mr. Chairman. The section that uh the ranking member is attempting to amend. Um I think it's important we understand what the law actually is that she's attempting to change here.
▶ 1:15:09Section 30002 of the Inflation Reduction Act of 2022 appropriated 1 billion in new mandatory spending to HUD for a green and resilient program also known as GRRP. The gentleman suspend just for a moment. Just got it. We apologize Mr. Chairman. We still just don't have the correct one. This is the What's happening now?
▶ 1:15:36Uh, Miss Garcia does not have the proper amendment. That's the chairman. It's just not Miss Garcia. I think this whole front row. So, okay. Well, the the Democratic clerk passed out the wrong amendment. We apologize for that. It's being corrected. Thank you. Or we accept your apology. No, just uh hold off here, gang. All right, Mr. Flood, we're giving your your time back. Mr. Flood has the floor. He's addressing Mrs. Waters amendment to the amendment in nature of substitute. Mr. Flood, you're recognized. You have four minutes and 14 seconds. Thank you, Mr. Chairman.
▶ 1:16:05I was speaking about the green and resilient retrofit program also known as GRRP. The GRRP was designed to make grants and direct loans to the owners of HUD subsidized properties to support energy efficiency and climate change resilience projects. Over the last 3 years, the Biden administration executed 12 rounds of funding for the program, spending over $850 million, which is more than 95% of the funds available to award.
▶ 1:16:35Earlier this year, the Trump administration announced it will be discontinuing use of the program, which was already set to in statute to expire in 2028. As a result, roughly $100 million in mostly administrative funds currently remain unobligated and can be returned to the Treasury without impacting any of the recipients of the previous GRRP grants or loans.
▶ 1:17:01Rescending these unobligated balances will save taxpayers more than $140 million over the next 10 years and help further reduce our current 1.31 trillion uh deficit. Uh with that I uh return uh I yield. The gentleman from Nebraska yields back. Who seeks recognition? Mr. Chairman, does the gentleman chairman? Uh the gentleoman from New York.
▶ 1:17:32Thank you. I yield to M uh the ranking member. Uh the gentleoman from New York yields additional time to the ranking member. Ranking members recognized. Uh thank you very much, Mr. Chairman. In response in response uh to the gentleman who um attempted uh to describe uh my amendment as not being in order.
▶ 1:17:51Uh I am striking the harmful language uh that you added in order to uh support the homeless people that I've so aptly described uh in my amendment. So my amendment is certainly in order and I would request the chair uh to move forward with a vote on my amendment. Well, we're not I thank the gentleman. Gentleman yields back to gentleman from New York. You still have time or you're yielding?
▶ 1:18:21You're the gentleoman yields back. Who recognition? If there's no further debate, the question now occurs on the amendment by the gentleoman from California, Miss Waters. All those in favor, please say I. I. All those who are opposed, please say nay. No. The naysay have it. The amendment is not agreed to. I acquire a recorded vote. The gentleoman uh requests a recorded vote. All those in favor of recorded vote, please raise your hands. A sufficient number having raised their hand.
▶ 1:18:50A recorded vote is so ordered. Pursuant to subchapter C5 of rule three of the committee rules, further proceedings on the amendment are postponed. Uh vice chairman, you're have withdrawn your point of order. I do withdraw. We will now move on to the next amendment. Who seeks recognition? I have another amendment at the desk. Uh the gentleoman from California has an amendment at the desk.
▶ 1:19:15will pause and we'll very very carefully distribute the proper amendment to both sides of the aisle. Please stand by
▶ 1:20:57violates the rules. Does the gentleman from Michigan have a point of order? I do have a point of order, Mr. uh uh point of order has been reserved on uh Miss Waters amendment. This is Waters number two. The clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Waters designated as HCA. This is Rep. Waters second amendment.
▶ 1:21:26I thank the clerk, the gentleoman from California. Mr. Chairman, a point of inquiry, please. Uh, yes. Uh, I don't know that I have the proper Can you withdraw? I'll explain in a second. I'll withdraw, Mr. Chairman. The gentleman from Texas uh yields. Uh without objection, the amendment is considered read. The gentleoman from California is now recognized to discuss her amendment. Thank you, Mr. Chair.
▶ 1:21:54Uh 51 of this 7 trillion billionaire tax break bill would eliminate $150 million in affordable housing investments that Congress already appropriated.
▶ 1:22:10My amendment strikes section 5001 and replaces it with my housing crisis response act to increase housing development, reduce housing inflation, revive the dream of home ownership for all and help end homelessness. On this first day in office, President Trump signed an executive order to bring down house prices.
▶ 1:22:37This was a promise he and Republicans made on the campaign trail. But unfortunately, affordable homes don't appear out of thin air. And instead, America is getting Trump tariff war, crashing stock market, rising mortgage rates, a 4% hike in housing prices and egg crisis, an uptick in unemployment, an unelected co-president
▶ 1:23:07that no one asked for, and now a decade worth of billionaire tax cuts. So, in addition to the 7 trillion billionaire tax break before us today, I call on my Republican colleagues to join me in supporting my amendment to invest over 150 billion to construct homes across the country that working families can afford.
▶ 1:23:32This includes starter homes, mixed income apartments, down payment and interest rate buy down assistance, small dollar mortgage loans, rural housing investments, and funding to invest accessible home upgrades for seniors and people with disabilities.
▶ 1:23:52My amendment would also help reduce insurance costs by investing in housing and community retrofits and making the National Flood Insurance Program solvent again. Um, members on the opposite side of the aisle, I'm asking you uh to have the courage uh to disagree uh with your leader uh the president of the United States of America who made all of these
▶ 1:24:23promises. Now, you know what these promises are? He said he was going executive order he was going to bring down house prices. Now, anybody on that side of the aisle disagrees that he didn't say this, raise your hand if you think he didn't say it. This was a promise he and Republicans made on the campaign trail. But unfortunately, again, there are no affordable homes.
▶ 1:24:48Affordable homes don't disappear out of thin air and instead America is getting a tariff Trump uh well Trump tariff war. Now, if anybody on the opposite side of the aisle disagrees that there's a tariff war going on, raise your hand. A cr a crash crashing stock market. Oh my goodness.
▶ 1:25:17The stock market, the fluctuations, the uncertainty, the complaints uh that have been heard everywhere. Even we are concerned about the way that the president talks about how he's going to drive the stock market down and then he's going to bring it back up and he's going to tell his friends about it and people about it so that they can invest when it goes down and they can make money when it goes back up.
▶ 1:25:46That's insider training uh that we should be dealing with. And so you have a crashing stock market, rising mortgage rates. Anybody on the opposite side of the aisle disagrees that we have rising mortgage rates and a 4% hike in house prices? And what about eggs? Every home in America is crying and talking about the egg prices. Didn't the president promise that he was going to bring those egg prices down?
▶ 1:26:16It seems to me uh that they're going up and then there's an uptick in unemployment. And so are you if you disagree with any of this just raise your hand so everybody can see you an unelected co-president must that no one asked for. Now if you know that the inquired about anybody anything and maybe he did inquire of you guys about whether or not he should bring on uh Musk.
▶ 1:26:45Maybe if he inquired of you and told you that this is what he was going to do. Raise your hand. So we'll know that you participated in must coming the unelected co-president and now a decade worth of billionaire tax cuts back. Gentle woman yields back the vice chairman. Mr. Chair, I have uh reserved a point of order.
▶ 1:27:07I'd like to raise a point of order that it's come to my attention that uh the Democrats clerk and staff still what yet again did not adhere to the uh to the rules of the committee. There are not enough copies for every member when this they have not been distributed. We heard Miss Garcia and others complain loudly when they handed out the wrong amendment to their own members.
▶ 1:27:28Again, uh but I I' I'd like to uh I'd like to I guess raise this point of order and and find out if you can rule that this amendment is not in order and we can dispense with this. Excuse me, Mr. w with with the with the the house rules there were insufficient numbers of the copies of the amendment distributed to each member. Therefore, it is uh this amendment's out of order. Excuse me. I would Mr. M. And Mr. Chair, is that then Excuse me, ma'am. I've got the I've got the floor.
▶ 1:27:58I have a I have a point of order. I have I have a point of order on this uh on this amendment. So, uh Mr. Chair, are you saying that this uh we will not be dealing with this amendment and no need for a vote? That's correct. I challenge I challenge the amendment is not in Thank you, Mr. Chair. Did not comply with the House Committ Mr. Chairman, that's not a house rule. I said committee rules.
▶ 1:28:21I ch I challenge uh the chair's uh decision because I am not sure uh that every member did not get a copy and I'd like to see the hands of the member who did not get it. I need the proof. Mr. Green, you want to You didn't get a copy, did Mrs. Green, silent on the issue. I don't believe everybody. Point of order. Mr.
▶ 1:28:47We're we still have a point of order on the floor and I've ruled I've ruled that the amendment's not in order. The the ranking member has made a motion I believe to to to appeal the ruling of the chair. I do appeal the ruling of the chair. Pause.
▶ 1:29:18You should know that.
▶ 1:33:10What's up? Okay. Does the Does the gentleman insist on his point of order? As tempting as it is, Mr. Chairman, if you can get assure me that um that we are going to be able to see all of the amendments, the right the correct amendment and that is going to be up to our colleagues on the other side. I am willing to withdraw my point of order.
▶ 1:33:32Let me ask the the ranking member does the ranking member uh agree that it's important to have timely and accurate distribution of the amendments and that she she will endeavor her best efforts to achieve that the rest of the day so that we can do more than two amendments an hour. Mr.
▶ 1:33:48The ranking member will agree that if the chair of this committee uh commits the same thing to his side of the aisle, I will be more than happy to work with you. But don't try it on one side of the aisle because I won't let it happen. Well, let me let me tell the ranking member with my pleasure. I've asked our our members on this side to not offer a single single amendment. Mr. Chairman, they've all agreed not to. Mr.
▶ 1:34:16Chairman point of clarification the gentleoman from New York. So the requirement of a 100 copies is not in the committee rule. That's right. But that's why but we can't conduct business if our members don't have the amendment in front of them. I understand that. But for someone he to come here and and and say that there has to be a hundred or close to it. Well, the gentle the gentleman from Michigan actually did not say that.
▶ 1:34:45He simply said that it we can't conduct business if our members don't have the amendment in front of him. And that's okay. Okay. All right. So, Mr. Chairman, I buy that. But we can't conduct business if your members make up the rules. He has no rule. And he's making it up and I won't let it happen. But I will agree. Let's move on. He has backed down and that's good enough for me.
▶ 1:35:10The gentleman from Michigan uh has withdrawn his port of honor and the minority has agreed that they will timely and accurately distribute their amendments. And so will the opposite side of the aisle do likewise. And the opposite side of the aisle will do likewise. And I again remind my Republican friends, don't offer any amendments today. Uh with that, whose streak seeks to speak on Mrs. Waters amendment in the nature of a subst amendment to the amendment in the nature of substitute.
▶ 1:35:39Who seeks recognition? I move to strike the last word. Uh the gentleman from California moves to strike the last word. He's recognized for five minutes. Thank you very much, Mr. Speaker. Mr. Chair, I move to strike the last word. Recognized. Mr. Chair, I I think what the ranking members attempting to do is a very noble thing. She understands how difficult it is to buy a house in the United States, especially for a firsttime home buyer.
▶ 1:36:07There's an opportunity here under her amendment to give aid to people who need it as opposed to people who don't need it. What my friends on the other side of the aisle are attempting to do or make all these cuts for one reason and one reason alone and that is to give billionaires, people that are very, very wealthy and the largest companies in the country a tax cut. That's what this is all about. It's that simple.
▶ 1:36:37And what the ranking members attempting to do is say no, we ought to help the people that really need the help. And that's what I think is appropriate here and I hope that's what we want to do. Now I do have to comment with all the back and forth respect to the reading or the non-reading of the amendments because under the rules we could insist upon the reading of the amendments as opposed to the waving of the reading of the amendments.
▶ 1:37:05Now, I wouldn't want to do that to delay this. But if the other side attempts to do that, I think one of us over here could then object to the waving of the reading. I think both sides generally know what's in the bill. They either get it or my understanding is the last amend this amendment that we're on is 150 pages. That's why because it's very technical in nature. Now, we could print 150 pages, you know, for and make a thousand copies.
▶ 1:37:33I think that'd be a very large waste of time. We understand what's in the bill. We know the bills. We know the amendments that are being made. And again, if if the other side wants to be pedantic about that, we can be pedantic, too, and say, "Well, read the damn amendment then." Well, will the gentleman yield? Yes. Yes. I will, sir. I I I fully agree. I my goal is to make sure that this committee functions and that those in the minority have their opportunity to raise objections.
▶ 1:38:03I was in the minority. I've been in the majority. I've been in the minority. I understand how it should work. When I look at the bottom of the amendment and I see it was printed yesterday at 3:52 p.m. It's really hard for me to accept the fact that there isn't enough time to get enough copies made for all of the members. there's there's no mystery as to how many people that we have.
▶ 1:38:26So that's that is why I I objected and my concern that I expressed to the chair and through the chair was that I was hoping and praying that this was not an intentional delay tactic and I it sounds like the chairman is assured that is not the case. I yield back. Thank you. Thank you very much. Although I have to be honest and say I think where we know we all know where the event was going anyway.
▶ 1:38:49That's why I think it was pedantic because the truth of the matter was is it's a very difficult amendment to pass because I don't think you guys are going to vote on and you knew that. I knew that. We all knew that. And still delay because it wasn't in writing. It's 150 pages. I mean, that's that's the reality here. Now, if we're going to argue about those things, once again, we can be pedantic about this and say, "Okay, we'll read the damn amendment." And I don't think we should get into that.
▶ 1:39:16But again on the amendment itself, I very much appreciate this amendment. Support it. Thank you, Mr. Chair. Gentleman from California yields back. Anyone seek recognition. If there's no further debate from Texas, Mr. Flood of Nebraska recognized to strike the last word. Thank you, Mr. Chairman. As to the amendment, we cannot continue to allow our government to spend money like there are no consequences. The underlying bill takes reasonable steps to reduce expenditures and to begin to correct Washington spending.
▶ 1:39:45The proposed amendment before us looks to increase spending and undo the provisions in the committee print. I urge my colleagues to vote no on the amendment and I yield back. A gentleman from Nebraska yields back. Who seeks recognition? Green from Texas. Mr. Green of Texas. You're recognized to strike the last word. Thank you, Mr. Chairman. Mr. Chairman, some things bear repeating. What my colleague indicated about the use of these funds is something that we should all continue to consider.
▶ 1:40:12the fact that we are now taking from the greedy the needy to support the greedy. Taking from the needy to support the greedy people need housing. The greedy persons who are the Elon Musk of the world have many homes in many places.
▶ 1:40:38I want my record to show that when I had the opportunity to help persons who are starting out in life to have the opportunity to fulfill the American dream, I stood on the side of those persons. I'm going to support this Waters amendment and any similar amendments. This is about more than the people who live in the sweets of life.
▶ 1:41:06It's about people who are in need of a home and who will in fact help the American economy to thrive when they have a place to call home. Uh, Miss Waters has been very thoughtful in presenting this amendment as she always is and I think we should be very thoughtful in how we decide to uh support it. I will be supporting the amendment. I yield back.
▶ 1:41:34Gentle from Texas yields back who seeks recognition. There's no further debate. The question now occurs on the amendment offered by the gentleoman from California, Miss Waters. All those in favor, please say I. I. All those opposed, please say no. In the opinion of the chair, the nays have it. The nays have amendment is not adopted. We will now move on to the next amendment. Ask for vote. Uh the a recorded vote has been requested. All those in favor of recorded vote, please raise your hands.
▶ 1:42:03sufficient number having raised their hand and recorded vote is ordered pursuant to subsection C5 of rule three of the committee rules. Further proceedings on this amendment are postponed. Now we will move on to the next amendment. Who seeks recognition? Mr. Chairman, the gentleoman from New York. Uh I have an amendment at the desk. Gentleman has an amendment at the desk. We'll wait for it to be distributed. Does the gentleman from uh uh yes, Mr. Chairman, I please I would like to reserve a point of order.
▶ 1:42:30Gentleman from Michigan reserves a point order. The clerks on both sides will be carefully checking the how the amendment is titled, recorded, and the copies and the quantity. Thank you.
▶ 1:43:18No, just I Okay.
▶ 1:44:05This is should be Vasquez 20 024. Clerk, do you have that one? No. Oh my gosh, they passed out the wrong one. Yeah. The $90 billion. Yeah.
▶ 1:44:38The one that you passed out was 21. You don't have that one. This is the one that I don't know which one is 21. So, clerk, do you have 021 at the top? Yeah, roger that. The clerk will report the amendment.
▶ 1:45:09An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Velasquez of New York. Without objection, the amendment is considered read and the gentleoman from New York is recognized to speak on her amendment. This is amendment 021, Miss Vazquez of New York. Thank you, Mr. Chairman. My amendment does two important things.
▶ 1:45:31First, by all of the base text of section 501, my amendment preserves the green and resilient retrofit program for multifamily housing, which Democrats included in the inflation reduction act of 2022.
▶ 1:45:48The program provides $1 billion in grants and up to $4 billion in loans to help affordable multifamily property owners upgrade aging properties to make them more energy efficient and better resistant to the impact of climate change. Funds from the green and resilient retrofit program can be used to replace and repair heating and cooling systems, floodproof buildings, and improve insulation.
▶ 1:46:19We need to continue to transition our nation's age aging infrastructure, particularly our public housing stock to make them more energy efficient. According to the World Resource Institute, residential buildings account for 12.5% of all emissions globally. This is a program that I'm proud to support and I believe is worth preserving.
▶ 1:46:44So, not only does my amendment preserve this program by striking the base, but it also jumpstart their redevelopment of our nation's public housing system by providing $90 billion for HOT's public housing capital fund to eliminate the capital repair backlog for public housing nationwide.
▶ 1:47:06Fighting to eliminate the capital repair backlog in our nation's public housing system is a cause I have been leading and championing for decades. Eliminating the capital repair backlog will continue to transition our nation's public housing stock to energy efficiencies and address the rapidly growing health crisis faced by the one two million household living in public housing units across the country.
▶ 1:47:33In my home city of New York, we have more than 400,000 residents living in public housing, many of whom are living in deplorable conditions. NICHA residents suffer from a consistent lack of hot water, insufficient heat during the winter months, rotten and insect infestation, broken elevators, and widespread and recurring lead and mold problems.
▶ 1:47:58If the scientific evidence wasn't already clear, one of the many lessons we should all take away from the CO 19 pandemic is that a person's health condition is often directly linked to their housing circumstances.
▶ 1:48:13For example, one leading study found that counties with a higher percentage of househo households with poor housing conditions had a higher incident of and mortality associated with CO 19 and recommended targeted health policies to support individuals living in poor housing conditions in order to mitigate adverse outcomes associated with CO 19.
▶ 1:48:41Another study found that children living in public housing have higher odds of asthma than children living in all types of private housing even after adjusting for individual risk factor. And the center for disease control prevention before it was taken over Trump administration and was relied upon for providing scientifically reliable data had made it clear that not level of lead poisoning is safe.
▶ 1:49:10Lead poisoning can result in irreversible brain damage and affects every major bodily system particularly for children. Even with the lowest level of lead exposure, children experience physical, cognitive, and neurological impairments after being exposed to lead. This investment has consequences.
▶ 1:49:32Nationwide, 200,000 units of public housing had been lost since 2010 and 10,000 are at risk of being lost each year unless critical funding gaps are filled. Public housing units continue deteriorating because we do not provide sufficient funding to make necessary repairs in this building, making our nation's affordable housing crisis all the more painful.
▶ 1:49:58So my amendment will ensure this committee investigate the funding needs of our public housing agencies when conducting oversight. We owe it to the residents to explore ways to improve the health and well-being of them and their family. Thank you, Mr. Chairman. I yield back. Uh Mr. Chairman, I'm going to reserve a point of order on this amendment, too, please. The gentleoman yields back and the gentleman from Michigan has reserved a point of order. Do you still insist on a your your motion I don't believe is time here?
▶ 1:50:31Yes, I do. Gentleman withdraws his motion. Uh is there further debate on uh the gentleoman from New York's amendment. Mr. Flood of Nebraska, you're recognized to strike the last word. Thank you, Mr. Chairman. We cannot continue to allow our government to spend money like there are no consequences. The underlying bill takes reasonable steps to reduce expenditures and to begin to correct Washington's spending. The proposed amendment before us looks to increase spending and undo the provisions in the committee print. I urge my colleagues to vote no on the amendment and I yield back.
▶ 1:51:03Gentleman from Nebraska yields back. Is there uh anyone else seeking recognition? Mr. Casten, you're recognized to strike the last word. Thank you, Mr. Chair. Um, we're going to be here for a long time today and I would ask out of respect for each other that we not talk about this as a fiscally responsible bill because you all know it's not true.
▶ 1:51:25We are here because Donald Trump feels that he and Elon Musk are not rich enough and we need to have $4.5 trillion dollars of tax cuts and they've realized politically that they can't do that by cutting social security and defense and all that's left is massive cuts to everything else. And so the dutiful soldiers um yours is not to question why. Yours is but to do and die. The dutiful soldiers are marching forward to cut the things in this that are subject to the jurisdiction of this committee.
▶ 1:51:54But no reasonable person would suggest that simply cutting government funding grows wealth. No reasonable person would suggest that cutting revenue does not reduce wealth. No reasonable person, at least on this side of the aisle, would suggest that defunding the police, leads to a wealthier society because we realize that when we don't have police forces, there's more crime and an economy doesn't work as well. And yet, we're going to have debates here about defunding all the white collar police.
▶ 1:52:24Um, let's not fund the IRS. Let's not fund the SEC. Let's not fund the CFPB so that people can do more crime. That is not a way you attract investment to America. specific to this investment. If you do not have housing, it's really hard to get a job. If you can't get a job, well, you don't pay taxes. That does not reduce the deficit.
▶ 1:52:50If you can't afford housing that to own and you need to rent, well, now you have this problem that does your landlord have an incentive to invest in energy efficiency as we do as homeowners because we want to lower our utility bills. Well, if your landlord is the United States government, through the housing program, we are helping people have more money in their pockets with this program.
▶ 1:53:11By making sure that that housing stock that those folks are renting is more efficient, has lower utility bills so that those folks who are now housed and have jobs also have more money in their pocket so they can invest and grow the economy. As Congresswoman Velasquez says, we got a bunch of lead pipes in a lot of these old housing that needs to be taken out. There is a rockolid correlation. More lead exposure leads to lower test scores and higher rates of criminality.
▶ 1:53:37Again, a society that has more criminality is not a society that has a growing attractive economy. You all are sitting here looking at the exact same economic numbers that we're looking at right now. For the first time in my memory, foreign investors are not only fleeing US equities, but are fleeing US treasuries.
▶ 1:53:56I met with banks last week, banks under our jurisdiction who said that the international community is putting a risk premium on investments in the United States because of regulatory risk and because they question whether the rule of law that they depend on to execute contracts in the United States will be executed as it will be in European markets where that capital is running to. So if you need to tell yourself before you go to bed that you're a deficit buster, fine. Just acknowledge you're lying. This is not about deficit busting.
▶ 1:54:26This is about making rich richer and that's it. So, we're going to be here all day. We will be here less time if we stop spreading nonsense because the economic term for people who would slash revenue and then slash those services that government can uniquely provide to make our society richer, the economic term for doing that in the name of deficit reduction is stupidity. I yield back.
▶ 1:54:55Gentleman yields back. Who seeks recognition? There's no further debate. Green from Texas. Uh Mr. Green of Texas recognized. Strike the last word. Thank you. I strike the last word and yield to Miss Velasquez. Gentleman from Texas yields to the gentleoman from New York. I thank the gentleman for yielding. Uh Mr. Chairman, u Mr. Flaud made uh a comment about the fact that this is a spending bill. It is not.
▶ 1:55:24This this committee is an authorizing committee. We don't appropriate money. And you're right. This amendment does the exact opposite of what Republicans are trying to do with their budget reconciliation bill because I disagree with the premise. We should not be trying to find $1 billion in costsaving to pay for tax breaks for millionaires and billionaires.
▶ 1:55:49Instead, we should invest in our nation's aging public housing system as we started to do with the IRA green and resilient retrofit program and build on that by investing the money necessary to reduce eliminate the capital backlog in our nation's public housing system. You ask me where will get we will get the money.
▶ 1:56:14I say that scrap this terrible proposal and work on a bipartisan plan that raises taxes on the ultra wealthy to pay for it. The money accumulated by the Treasury Department will go towards paying for this and I yield back. General yields back to Mr. Green. Mr. Green, do you uh hold the floor? I yield. I move to start your last word. Uh the gentleoman from the gentleman yields back.
▶ 1:56:43The gentleman from California is recognized to strike last word. Thank you very much. Um, for decades, Congress has chronically underfunded. Public housing and families are paying the price. This longstanding disinvestment has led to a massive capital backlog, leaving residents to live with broken elevators, leaking systems, rodents, bursting boiler pipes, and mold.
▶ 1:57:10Some public housing residents have even gone without heat during winter months, forcing them to use ovens and grills to keep warm, leading to several deaths from carbon monoxide poison. Meanwhile, I'll just say this to Miss Velasquez. I'll never forget a call that you made to me. You were in New York. You were at a housing uh development and there was no heat.
▶ 1:57:36and you explained to me uh that uh the people were suffering uh that uh the children were suffering and I'll never forget uh the work that we did to try and get that heat on. But you are absolutely correct. You have firsthand knowledge about what is going on with this disinvestment in public housing.
▶ 1:57:58No one should be forced to live in these conditions, especially not in one of the richest countries in the world, and especially not at the hands of a government that refuses to fix a problem it created. Public housing is an essential part of our nation's housing stock, and we must preserve our already limited housing supply.
▶ 1:58:19Now is the time to fully fund public housing and address the backlog of long overdue repairs to ensure every resident has access to a safe, decent, and affordable place to call home. So I thank you, Miss Velasquez, for offering this amendment to do just that. And I urge my colleagues on both sides of the aisle to say yes. I yield back. Gentleman yields back.
▶ 1:58:47Who seeks chair recognizes himself for five minutes to strike the last word. Let me thank uh the gentleoman for her amendment. But let me remind our members that in the money that we're saving here under the direction of the House Budget Committee to reduce uh spending that 95% of the money under that grant program has been expended and the bulk of the remaining money is for administrative purposes only.
▶ 1:59:18and these funds expire in 2028. So I I would urge my colleagues to vote no on the gentleoman from New York's amendment. Does the gentleman maintain his point of order? I would draw my point of order. Is there any further debate on the amendment? Hearing no further debate on the amendment, the question now occurs on the amendment offered by the gentleman from New York. All those in favor, please say I. I. All those opposed, please say nay. Nay. In the opinion of the chair, the nays have it.
▶ 1:59:46The N amendment is not for a recorded vote. The gentleman from New York asked for a recorded vote. All those in favor, please raise your hands. A sufficient number having raised their hands. Uh under the committee rules. Uh a vote is postponed. We'll now turn to the next amendment. Uh who seeks recognition? Green from Texas. Mr. Green of Texas has an amendment at the desk.
▶ 2:00:13will pause while it is distributed very carefully and properly.
▶ 2:01:10Thank you.
▶ 2:01:54Mr. Chair, I'd like to make a point of order. The gentleman from Michigan reserves a point of order. We're very close to having these completed passed out. Just a moment, Mr. Clerk. This is amendment 29029 Green of Texas. Uh the clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Mr.
▶ 2:02:24Green of Texas designated as 029. This is the first amendment. Without objection, the amendment's considered red. The gentleman from Texas is now recognized to discuss his amendment. Thank you, Mr. Chairman. Mr.
▶ 2:02:37Chairman, as written, section 50001 rescends unobligated funds from the Department of Housing and Urban program that funds energy efficient and climate resilient upgrades in multifamily housing assisted through HUD's section 8 program, which deals with lowincome persons in needing of assistance.
▶ 2:03:01202 program which deals with the elderly and 811 which supports persons who have some disabilities. And while the chairperson would redirect these funds for purposes that I don't agree with, I believe these funds can be redirected such that they can help people in need of housing.
▶ 2:03:2450001 does nothing to address the housing and climate crisis that are hurting our constituents and instead would eliminate funding that would help increase the supply of resilient and affordable housing.
▶ 2:03:40My amendment would strike section 50001 and replace it with the Reforming Disaster Recovery Act of 2019 that I and Wagner in tandem with this committee's leadership passed the House of Representatives in the 116th Congress. My amendment adds aid after a disaster.
▶ 2:04:08It does not take money from the elderly and disabled and transfers it to persons who of great means. This amendment would permanently authorize the community development block grant disaster recovery, that is the program, which provides communities with flexible long-term recovery resources needed to rebuild affordable housing and infrastructure
▶ 2:04:39after a disaster. CDBGDR is often one of the only recovery tools available to the lowest income survivors of disasters, vital resources have been diverted after past disasters from the people and communities with the greatest needs and for whom the program was designed to serve.
▶ 2:05:06This amendment would ensure that limited disaster recovery funds reach the most vulnerable And I would add this, this amendment would allow the persons who are in greatest need of those disaster funds, some of them, many of whom are veterans, many of them are elderly persons,
▶ 2:05:36persons who have disabilities. uh we are finding that many of these persons after a disaster will not get the funding that need. And for the benefit of all, if you have not suffered one of these disasters, it's just a matter of time before you're likely to. We should be proactive and do what we have done. This resolution, this bill has actually passed the House of Representatives.
▶ 2:06:07And I credit Miss Wagner with a lot of the effort to get it done. We worked together, but to be very candid, this was an idea that she brought to my attention, and I'm honored to have worked with her to pass this legislation. And I would hope that my colleagues on both sides of the aisle would realize that what we did once in another Congress, we can do again in this Congress. And this bill affords us the opportunity to do this.
▶ 2:06:36It's time for us to give consideration to the hurricanes that impact the Gulf Coast, the fires that impact the west coast and many of the other disasters that are in between the various coasts. Uh there are tornadoes, earthquakes.
▶ 2:06:59We have the ability to deal with these things in a systematic fashion as opposed to after each of these natural occurrences to reinvent the wheel which is what we do currently. We reinvent the wheel after each disaster.
▶ 2:07:18We don't have place what this legislation would provide and that is a means by which we expeditiously help people to recover from natural disasters. Don't pass this legislation and we'll be responsible to many people for a lack of an effort to recover. I yield back. Gentleman yields back who seeks recognition. Gentleman from Nebraska, Mr. Flood, you're recognized to strike the last word. Thank you, Mr. Chairman. I want to thank the gentleman for offering this amendment.
▶ 2:07:47I am open to future collaboration on this important issue and I think it's important that the committee know I've been in communication with our subcommittee's ranking member on the CDBG program. Um and I do intend to as the subcommittee chairman of the housing insurance subcommittee hold a hearing on the CDBGDR program this Congress. However, given the that the current committee print has been carefully crafted to produce savings in our jurisdiction, this isn't the appropriate time for this policy discussion.
▶ 2:08:17Therefore, I must oppose this amendment today and I yield back. Mr. Gentle from Nebraska uh yields back who seeks recognition. Mr. Chairman, the gentleoman from Texas is recognized to strike the last word. Mr. Chairman, I want to strike the last word in support of this amendment. Uh while I while I understand and hear that this has been uh carefully crafted and we should take this up at a future time, I want to just adamantly disagree.
▶ 2:08:46While my comments earlier about the um uh lack of of amendment in print uh what has been described as me wildly complaining. I didn't wildly complain, but I may consider wildly complaining about anyone suggesting that this topic of this amendment needs to be delayed. Um, acts of God don't know any boundaries. They don't know any timelines. They they kind of happen when they happen.
▶ 2:09:17And those of the people who are most vulnerable are always the least prepared because of lack of resources. and then after an event again whether it's fire or hurricane or extreme heat whatever the event uh it takes so long to recover and if you're not insured then you're just out of luck.
▶ 2:09:38The CDBG program really allows local governments uh to uh prioritize uh the needs uh and to address those needs particularly uh for those in populations uh that are stressed. I and perhaps even in poverty areas. So, I know that in Houston, in our region, we've always always expect and kind of get two or three hurricane alerts uh every every season.
▶ 2:10:07uh and I know my colleague from Houston has worked tirelessly on this topic and together we've worked tirelessly to make sure that not only do we get uh assistance quickly uh but to fully address all the needs particularly in those areas uh that need it the most. So again, I want to widely whatever that means uh support this amendment uh and urge my colleagues to remember what he said.
▶ 2:10:37We've already passed this. There's no reason not to pass this an amendment today. None at all. Thank you. And I yield back. Would you yield to me, please? Sure. I yield the balance of my time to my colleague from Houston, um Mr. Green. Mr. Green's recognized. I thank the gentle lady for yielding. Uh Mr. Chairman and friends, members, Dr.
▶ 2:10:59King was quite prophetic when he proclaimed that the time is always right to do what is right. My colleague has conoted that this is not the right time. Well, it may be the wrong time to wait until we have another disaster. No one knows when the next disaster will occur, nor do we know where it will occur.
▶ 2:11:27This legislation puts us in a position to respond to these disasters efficaciously. I I respect the gentleman's desire to work with us and to help us produce the proper legislation, which we've passed once. Miss Wagner can attest to it. Uh the members here are aware of it and the leadership on this committee uh was very much involved in helping get this through the House of Representatives.
▶ 2:11:57The time is always right to do what is right. This is the time. We are the people. We must get it done. I ask that my colleagues reconsider the position that they've already assumed. And I will yield back. Gentleman yields back to the gentleoman from Texas who yields back to the chair who seeks recognition.
▶ 2:12:22Well, I just again urge all my uh wildly urge all my colleagues to uh support the amendment presented by Mr. Green. Thank you and I yield back. Gentleman yields back. Who seeks recognition? Mr. Cast. Mr. Castton, you're recognized to strike the last word. Uh thank you.
▶ 2:12:44Um, I guess I want to challenge the assertion that this document was very carefully crafted because I'd like to know why a carefully crafted document would cut this program. We know plenty of examples where FEMA grants were not sufficient to cover emergencies where this program was critical. Hurricane Katrina, Hurricane Wilma, we go on down the list. The recent crisis in North Carolina. Um, I would submit to my colleagues of the party of Lincoln to take Lincoln's admonition.
▶ 2:13:13The legitimate object of government is to do for a community of people whatever they need to have done, but cannot do at all or cannot so well do for themselves in their separate and individual capacities. If you have just lost your house, lost your neighborhood, lost your school to a hurricane, FEMA doesn't have enough resources in the kitty to fix it. and you have decided in this carefully crafted document to strip the recourse that we have in that program.
▶ 2:13:44Maybe it ain't so carefully crafted. What how how would any of us in that situation be able to do what our do for ourselves what the government uniquely can do. We don't have to cut this. It was a choice to cut it.
▶ 2:14:06And I have no idea when we will finally find the time on this committee to bring up a bill that would fix that, that will get through the Senate, that will be signed by a president who, oh, by the way, is also cutting FEMA. Look, if you don't like if you don't like Lincoln anymore, if you don't think he's still a good voice for the party, and I guess just follow another guy who said, "What you do to the least of these, you do one to me." Support Al's amendment. yield back.
▶ 2:14:35Gentleman yields back, seeks recognition. The ranking member strikes the last word. Thank you very much, Ranking Member Green for offering this amendment to authorize HUD's community development block grant disaster recovery program, In January, over 55,000 acres in neighborhoods across Los Angeles County were burned by an onslaught of wildfires.
▶ 2:15:05Homes, businesses, places of worship, and natural habitats were destroyed, displacing families of all income levels, and leaving entire communities in crisis. These types of disaster events are becoming more frequent, more severe, and less predictable as climate change intensifies.
▶ 2:15:28While insurance coverage helps communities recover and rebuild, many lower and moderate income families face barriers such as underinsurance while others are uninsured because they cannot afford rising deductibles and premiums. That's when CDBGR program kicks in.
▶ 2:15:49Unfortunately, however, the program is unauthorized and in need of reform to ensure those families and communities are not forced to wait years before disaster recovery assistance is made available. Thankfully, Mr. Green and Ms.
▶ 2:16:06Wagner have led the way in Congress and in this committee to advance a bipartisan solution to authorize and reform CDBGR to help communities rebuild housing, repair infrastructure, and fully recover post disaster. So, I urge my colleagues to support Mr. Green's amendment.
▶ 2:16:29And I would urge uh the gentleman who said it's not the right time uh to speak uh not only uh what Mr. Green uh but some of the other members of the Republican uh party who support this program uh so that you don't lead this uh committee into the wrong decision about whether or not it is absolutely necessary.
▶ 2:16:56Miss Wagner, as was pointed out, is a big supporter, having worked with Mr. Green, and I would hope that we could on this at least get an Iowa. Uh, the gentleman yields back, seeks recognition, hearing none, chairman recognizes himself for five minutes to strike the last word.
▶ 2:17:16Let me thank Chairman Flood for his willingness to continue the constructive work on the issue of CDBGR authorization and reforms that Miss Wagner and Mr. Green so abley uh have led in the past, but that is not uh relevant to today's discussion from the standpoint this is a budget resolution. We've been instructed to cut $1 billion in spending.
▶ 2:17:41uh the uh cut in the budget of the green and resilient retrofit program from the inflation reduction act does not have any more grant funds left in it. The bulk of it is administrative expense. We're proposing to return that administrative expense to the treasury. So I appreciate the members uh concern and support of working with each other on CDBGR, but I do not support the amendment to this budget resolution. I urge a no vote to yield back the balance of my time.
▶ 2:18:11Who seeks recognition? none, will now consider uh uh this amendment, the yays and nays. Does the gentleman from Michigan maintain his point of order? I withdraw. He withdraws it. The clerk uh what's uh all those in favor of Mr. Green's amendment, please say yes. Yes. All those opposed, please say nay. Nay. Nays have it. Ask for a recorded vote. Uh the gentleman from Texas asked for a recorded vote. Recorded votes been requested.
▶ 2:18:40All those in fe favor, please raise your hands. A sufficient number having been uh raised under the committee rules. The motion on this will be postponed. We'll now consider the next amendment to the amendment in the nature of substitute. Who seeks recognition? Mr. Chairman, I have an amendment at the uh Miss Williams from Georgia, you're recognized to for amendment. We'll wait till it's So stand by.
▶ 2:19:38Mr. Clerk, we're looking at home uh CDBG AM amendment uh from Williams section. It's a investments in affordable housing supply. Is that what you have? Okay.
▶ 2:21:21All right, Mr. Clerk. Uh, would you report an amendment to the amendment in the nature of a substitute to the committee print offered by Miss Williams of Georgia designated as home CDBG AM ND. This is her first amendment. I will consider without objection amendments considered red. and I recognize the gentleman from Georgia to discuss her amendment. Thank you, Mr. Chairman. Mr. Chairman, my amendment is quite simple.
▶ 2:21:48Let's do the actual work to address the housing crisis as I know that we are all very concerned about. Mr. Chairman, my amendment would simply provide more funding for the home and CDBG programs to build, rehabilitate, and preserve affordable and resilient housing to bring down housing prices and reduce the cost of post- disaster recovery efforts. We're facing an affordable housing crisis. But you don't have to take my word for it as I know you probably don't want to. But I brought the facts for you.
▶ 2:22:17According to the 2024 State of the Nations housing report, it found that homeowners and renters are struggling with high housing costs, which we all know. And that number of costburden renters, y'all, it is at an all-time high. And according to the National Low-Income Housing Coalition, there's a structural deficit of affordable housing in the United States that exceeds 7.3 million affordable homes. When the house is on fire, y'all, we shouldn't be painting the kitchen.
▶ 2:22:48Gutting the green and resilient retrofit program is a distraction. It's a program that some of my colleagues on the other side of the aisle have issues with. And I get it. You've been told that you should disagree with this simply because it has green in the program title or because it has been associated with a bipartisan piece of legislation, the inflation reduction act.
▶ 2:23:11But how about we fund and prioritize the actual crisis in our country by supporting the home investment partnerships program and the community development block grant program. These programs are two of the most important programs administered by the US Department of Housing and Urban Development that helps communities thrive. Y'all, I know how important this issue is on both sides of the aisle. Democrats and Republicans continue to speak out, but it's time to do the work.
▶ 2:23:38To quote a member of this committee, I see this as an economic development issue and a basic human right. more than anything, people that are working their tail off. They want their chance to have the American dream. I want them to have a home and care about their neighborhoods. I want them to pay their property taxes and know that because they own a home, they're directly benefiting their school, fire department, and more.
▶ 2:24:04I'm really passionate about housing, and I think we can do some good things together with Democrats to move the ball. Y'all, this wasn't a quote by me or any of my Democratic colleagues. This was Congressman Flood's direct quote from the National Housing Conference just on April 9th. Mr. Flood, I agree with you. Let's do the work so that we can represent our constituents who are hurting back home. With that, Mr. Chairman, I urge my colleagues to join me in legislating on a bipartisan basis and passing my amendment.
▶ 2:24:34And I yield back. Gentlewoman yields back. Who seeks recognition? Hearing none, chairman will recognize myself for five minutes. I thank the gentleoman from Georgia for her amendment and for her willingness to uh work on u improvements to the home program at HUD as well as the CDBG program and the gentleoman is correct that on a bipartisan basis I do believe you have an opportunity to improve those programs but this
▶ 2:25:04is not the forum for it's my time gentleoman that's this is not the personal the time for that we can't continue to allow the government to spend money like there no consequences. The mission today under our budget reconciliation instructions from the full house is to find savings uh in the jurisdiction of ours. This underlying bill takes reasonable steps to reduce expenditures and begin to correct Washington spending that we've experienced since the pandemic.
▶ 2:25:35The proposed amendment before us looks to increase spending and undo the provisions of the committee print. Therefore, I urge my colleagues a no vote and I urge my colleagues to work diligently together on a bipartisan basis in our housing subcommittee on future reforms. I urge a no vote. I yield back the balance of my time. Anyone seek recognition? Hearing none, we I'm sorry, Mr. Chairman. May I move strike? Uh Mr. Sessions of Texas recognized. Strike last word.
▶ 2:26:04I appreciate this dialogue and discussion. And I think it's interesting that uh the Democratic Party had full control of the House of Senate and the presidency over years by which President Biden spent hundreds of billions of dollars on all sorts of issues.
▶ 2:26:22Uh I personally along with the gentleoman Eddie Bernice Johnson from Dallas, Texas attempted to engage the secretary of HUD many many times.
▶ 2:26:35the gentlewoman Fudge and we en also engaged the gentleman Greg Meeks uh and others from this committee to encourage the housing HUD to to do something about this. We gave them three or four very specific uh ideas that we had on a bipartisan basis.
▶ 2:27:04Not one time the gentleoman who is the chair who was the head of HUD respond back to us. Dr. Lisa Mlan did uh her head of government affairs and Dr. Mlan was most instructive with us and tried to plead with us on the problems that were they were encountering. But I would just say to the gentleoman, we have worked on this. Mr. Flood is exactly correct. Our chairman is correct.
▶ 2:27:33This is a bipartisan issue and for four years we dealt with the Biden administration and made zero progress on specifics that Mr. Flood worked on and that this committee has been concerned about. I thank the gentleoman for her time. Mr. Chairman, I yield back my time. Gentleman yields back. Hearing no further debate. The question now occurs on the amendment offered by the gentleoman from Georgia, Miss Williams. All those in favor, please say I. All those opposed, please say nay.
▶ 2:28:04Nay. In the opinion of the chair, the naysay have it. The nays have. The amendment is not adopted. The gentleoman has requested a recorded vote. Recorded vote has been requested. All those in favor, please raise your hands. A sufficient number having raised your hand. A recorded vote is so ordered. Pursuant to C5 of rule three of the committee rules, further proceedings are postponed. We now will proceed to the next amendment.
▶ 2:28:26Who seeks Uh Mr. Licardo, you're seeking recognition. I am, Mr. Chair. Thank you. Um at the desk at the desk is number 14.
▶ 2:28:44Uh we will wait for that to be Thank you, gentleman from Oklahoma. Mr. Chairman, I raised a point of order at the right time.
▶ 2:29:00The gentleman from Oklahoma has reserved a point of order at the right While we're waiting, we're delighted to see a new citizen of Colorado visit the committee hearing room.
▶ 2:30:22The clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Licardo of California designated as 14. This is his first amendment. I thank the clerk. Uh without objection, the amendment will be considered as read. And I now turn to the gentleman from Colorado to strike the last word to explain his amendment. Uh California, Mr. Chair. Thank you.
▶ 2:30:48Um I the amendment seeks to have us hold off on this decision until we have a study from HUD to understand what the impact might be uh and reducing funding for projects that protect against national uh natural disaster damage.
▶ 2:31:10And before we get into that, I think it's important to squarely address this question really how much money is left uh because I know uh chairman and others have suggested that all of the funding uh for this uh funding fund has been allocated already to projects and all that is left is for administrative expenses.
▶ 2:31:34When committee staff reached out to the CBO on this issue on April 26th, uh committee staff was told, minority staff, that $143 million remains unallocated. Uh that would lead me to believe uh based on what we know is allocated under the statute for administrative expenses that there must be money left for additional expenditures on actual projects that could actually mitigate against future natural disasters.
▶ 2:32:04Uh this is otherwise we would assume that zero money had been spent on administrative expenses and all 143 that remain would have to be on administrative expenses as if we only spent exclusively on projects up to this point. That's not my understanding how government spending generally works. Administration usually accompanies the actual allocation of funding to projects. So, uh, we would certainly love to have more clarity from HUD.
▶ 2:32:34My understanding is minority staff has reached out to HUD and has not gotten any response to our inquiry about exactly how much uh, would be allocated to what. Uh, and so we can only rely on the CBO. And uh certainly the fact that HUD staff is not responsive to committee staff raises some concerns because obviously we know many local agencies depend on understanding from HUD what money might be left or not.
▶ 2:33:01Uh nonetheless I'll go to the point here of this amendment uh which is that this fund is critically important for mitigating the risk of damage from severe weather events. And uh whether those of us on this side of the aisle believe those severe weather events are increasingly from climate change or perhaps others might believe it's just because we're increasingly unlucky with natural disasters.
▶ 2:33:27Uh we should all agree that an ounce of prevention is worth a pound of cure. And that pound is growing increasingly heavy. Uh recently, in fact, just a few days ago, Republican Governor Sarah Huckabe Sanders uh sent a April 24th letter to President Trump saying that localities desperately needed federal assistance to pay for damage from recent storms.
▶ 2:33:54We have heard this many times and we'll hear it many more times in the future. If we're concerned about deficit reduction, we know how much the federal government is paying and will continue to pay for these disasters, then we must invest in prevention. Uh this is our opportunity to do so. I am again proceeding based on the information we have, the latest information only days ago from CBO that there's $143 million to actually allocate from this fund. Thank you.
▶ 2:34:24A The gentleman from California yields. Uh, who seeks recognition? The gentleman from Nebraska, please recognize. Strike the last word. Thank you, Mr. Chairman. We cannot allow and continue to allow our government to spend money like there are no consequences. The underlying bill takes reasonable steps to reduce expenditures and begin to correct Washington spending. The proposed amendment would stop this recision and undo the provisions in the committee print. I urge my colleagues to vote no on the amendment.
▶ 2:34:53And with that, I yield back. Gentleman from Nebraska yields back. Who seeks recognition of the ranking member? Thank you very much. Um I move to strike the last word. Gentle woman's recognized. I thank Representative Licardo for his amendment. There is no doubt that with every day that passes, the climate crisis and the housing crisis become more interconnected than ever before.
▶ 2:35:17Each time a major disaster or extreme weather event hits a community, whether it's wildfires in California, Colorado, Oklahoma, or Texas, major tornadoes in Kansas, or extreme wind, hail, and snowstorm in Nebraska. Families see their homes damaged or completely destroyed.
▶ 2:35:39In other cases, as global temperatures rapidly change, the cost of heating, cooling, and powering our homes gets much more expensive. This is especially true in homes that lack energy efficiency due to a lack of insulation or aging roofs, not to mention the effects that rising housing costs and climate related losses are having on insurance rates.
▶ 2:36:04Thankfully, there is something we can do to prepare the nation's housing stock against climate disasters. That's why Congress created the $1 billion green and resilient retrofit program at the Department of Housing and Urban Development. The GRRP funds housing renovations and repairs to improve climate resil resiliency and mitigate against future disasters.
▶ 2:36:34The program also improves energy efficiency and housing to bring down families utility Unfortunately, instead of adding funds to this program or working to build more affordable housing, Republicans are stealing what little federal housing funds there is to give their billionaire boys club a handout.
▶ 2:36:58Unfortunately, the billionaires aren't going to bail out millions of Americans when they are displaced or homeless because flooding destroyed their homes. Billionaires aren't going to pay for a new roof when it's ripped off by a tornado or to rebuild homes after a hurricane, a wildfire. In fact, those same billionaires win when they make billions off of rising insurance premiums and unpaid claims.
▶ 2:37:27This bill is a scam in the face of the American people. I urge my colleagues to support Mr. Lardo's amendment to preserve funding that helps Americans prepare their homes for climate disasters. And I yield back. Gentlewoman yields back. Who seeks recognition? The gentleman from Oklahoma. Do you insist on your point of order? I no longer insist on my point of order, Mr. Chairman. Point of order is withdrawn. The chair recognizes himself for five minutes.
▶ 2:37:56Again, I thank my friend from California for his amendment. Uh again, the uh the committee print for the budget resolution is not addressing or you know cutting funds related to uh uh disaster recovery. As we've discussed, it's removing about a little over hund00 million of administrative funings funding that's left over from the fully expended green and resilient retrofit program.
▶ 2:38:23I appreciate the gentleman's uh amendment and interest in the area. I urge a no vote as I don't believe it's in in the in keeping with our budget resolution today. Uh is there any further debate hearing? None. Calling the question on Mr. Licardo's amendment. All those in favor please say I. I. All those uh no please say nay. Nay. The nays have it. The amendment is not agreed to. Request a recorded vote.
▶ 2:38:51The gentleman from California requests a recorded vote. All those in favor, please raise your hands. A sufficient number having raised their hands, a recorded vote is so ordered. Uh pursuant to committee rules, the vote will be postponed. Uh is there further amendment on the amendment in the nature of a substitute? The gentleman from Colorado has an you have an amendment at the desk. I do. We will wait for it to be distributed.
▶ 2:39:33Mr. Chairman, gentleman from Oklahoma. Mr. Chairman, I'd like to reserve a point of order on this amendment. Gentleman recog uh reserves a point of
▶ 2:40:17Mr. Clerk, we're looking at Peterson 029 is what we're looking at. Thank you.
▶ 2:40:58Are we distributed? Okay, great. Sorry. Great. All right. Uh, the clerk will report the amendment. Okay. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Person of Colorado designated as Person 029. This is her first amendment.
▶ 2:41:28Without objection, the amendment will be considered as read. And I now turn to the gentleoman from Colorado for her Uh thank you, Mr. Chairman, and great to be back with you all. Sam is attending his first committee hearing here. Um the Thank you so much. Thank you all. So good to see you.
▶ 2:41:51Um the bill before us, as you know, would not only dismantle the Consumer Financial Protection Bureau, which provides a critical support for people who are being taken advantage of, uh it also takes the civil penalty fund from the Treasury and sweeps it or the civil penalty fund from CFPB and sweeps it to the Treasury to pay ultimately for the enormous the trillions of dollars of tax giveaways.
▶ 2:42:20to the most wealthy in the United States without helping those who have been harmed. And so my amendment proposes a much better use of the excess amounts in the civil penalty fund that come from the enforcement actions. As the committee is aware, the CFPB, the fund includes money that is collected as part of their enforcement actions in upholding the military lending act, a law that protects service members and their families from predatory lending practices.
▶ 2:42:49And according to the Bell Policy Center, the CFPB has resolved 39 cases involving harm to service members and veterans and returned 363 million to the victims, including six enforcement actions for violations of the Military Lending Act.
▶ 2:43:04So my amendment would require that if excess amounts are left over from the Military Lending Act enforcement actions, then that money instead of paying for tax breaks for the most wealthy would be transferred to the housing and urban development veterans affairs supportive housing program. As this committee is aware, HUDVASH is a joint program that pairs HUD's rental assistance with Veterans Affairs case management and supportive services. And about 90% of HUDVASH vouchers result in permanent housing placements.
▶ 2:43:33And according to one study, 93% of veterans were stably housed 12 months after receiving this assistance. So this program has been proven to work. The CFPB could easily segregate the funds with MLA enforcement and ensure we use that money to support veterans who are experiencing homelessness. Funds that come as a result of service members and veterans being harmed should go towards supporting service members and veterans, not supporting tax giveaways for the most wealthy.
▶ 2:44:01and I urge my colleagues to support this important amendment and I yield back. Gentleoman yields back who seeks Seeing no further uh debate, I'll call question. Oh, the gentleoman from California. Oh, thank you. I move to strike the last word.
▶ 2:44:26Uh the HUDbash program, that's what we're bash is one of the most successful homeless programs in our nation's history. Taking a housing first approach, the program gets veterans who are experiencing homelessness into housing by providing them with rental assistance vouchers as well as wraparound services like job training, health care, substance use treatment, and more.
▶ 2:44:57Despite more than 771,000 people experiencing homelessness on any given night in US, veteran homelessness decreased to its lowest level on record last year thanks to Congress's um constituent allocation of millions of dollars for the HUDbash program.
▶ 2:45:20This approach is not just about providing shelter, but also about providing the necessary supportive services to address other basic needs. So, I thank Miss Patterson for offering this amendment to ensure we can end veteran homelessness once and for all. And I urge my colleagues on both sides of the aisle to say yes.
▶ 2:45:50Y back. Yeah. Yield back. Gentleoman yields back. Is there any further debate on the amendment? If no, the question now occurs on the amendment offered by the gentleman from Colorado. All those in favor, please say I. I. All those opposed, please say no. Nay. In the opinion of the chair, the nose have recorded vote. Miss Miss Peterson. Well, thank you, Mr. Chairman. I request a recorded vote. A recorded vote is requested.
▶ 2:46:20All those in favor record raise your hands. Sufficient number having raised their hands. Record vote is so ordered. Pursuant to subject C5 of rule three of the committee rules, the further proceedings are amended. And I assume you've withdrawn your point of order. You are correct, Mr. Chair. I thought so. I read your mind. You did, sir. We'll move on to the next Who seeks recognition? Mr. Licardo of California. Uh, thank you, Mr. Chair. Uh, number 18 is at the desk. Uh the gentleman has amendment 18 at the desk. We will wait for it to be distributed. Thank you.
▶ 2:48:54The clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Licardo of California designated as 018. This is his second Without objection, the amendment will be considered as read. I now turn to the gentleman from California for uh five minutes. Uh thank you, Mr. Chair. I would uh first note that that is a very difficult act to follow. Uh so I will do my best.
▶ 2:49:24Yeah, as a preface again to this amendment, I want to point out the CBO reported to minority staff on April 26 that there was $143 million remaining in the green and resilient retrofit program that had been unallocated and undoubtedly that some substantial portion of that amount would go to projects that would be a very large sum to merely go to administrative expenses.
▶ 2:49:49uh based on what we see in the statute uh it would seem uh unless we are getting different information and we have tried to get better information from HUD staff and they've been unresponsive. So if they're getting giving other information to majority staff, I think it's important for all of us to hear the same information. Uh but assuming of course that there is $143 million allocated based on the CBO.
▶ 2:50:11Uh I think we all who ran last year and that was all of us probably told our constituents that we were going to do something about reducing the very high cost of living that is choking millions of families today. And certainly utility bills are one dimension of those very high costs. And the cheapest energy of course is the energy that we don't use, energy that we conserve.
▶ 2:50:36So the green resilient and retrofit programs investment to ensure landlords and their tenants can conserve energy and water with these retrofits and in fact lower their utility bills. That is an essential part of what we are committing to our constituents every time we tell them we are going to reduce your cost of living.
▶ 2:51:03Uh, and we know that these kinds of programs can help. I've seen it before in my own city of San Jose. And particularly since these are tenants who are the most cost-sensitive of Americans, tenants overwhelmingly living in affordable housing. And so, uh, with this amendment, I would seek to determine whether or not this decision is appropriate if it would undermine efforts to reduce utility bills for tenants and landlords based on findings of the Secretary of Housing and Urban Development. Thank you. I yield.
▶ 2:51:34Gentleman yields back who seeks recognition. The gentleman from Nebraska, Mr. Flood. Thank you, Mr. Chairman. Uh, this is an issue that I believe the gentleman from California and I agree on and one that I hope to work with you on in the future. However, I must oppose the amendment and believe the committee print strikes the appropriate balance to deliver on our committee's $1 billion instruction. I urge my colleagues to vote no on this amendment and advance the underlying bill. I yield back. recognition.
▶ 2:52:05If there's no further debate, the question now occurs on the amendment offered by the gentleman from California. All those in favor, please say I. I. Any all those opposed, please say nay. For the the nays have it. The amendment is not agreed to. Uh, gentleman from Yes. Request a recorded vote. Thank you. A recorded vote has been requested. All those in favor of court vote, raise your hand. Sufficient number having raised their hand or record votes.
▶ 2:52:34So order pursuant to subsection C5 of rule three of the committee rules. Further action on this is postponed. We'll now consider further amendments. Uh who seeks If there's no further debate, um I have an amendment at the desk. The gentleoman from California has an amendment at the desk. We'll wait for it to be distributed.
▶ 2:53:06What's your number?
▶ 2:55:02The clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Miss Waters of California designated as G02. This is Miss Waters third amendment. Does the gentleman from South Carolina reserve a point of order? Yes. The gentleman from South Carolina reserves a point of order. Uh the amendment has been distributed. I now turn to the ranking member, Mrs. Waters, for five minutes to describe her amendment.
▶ 2:55:32Uh thank you very much, Mr. Chairman. There are about uh 18 million veterans, brave women and men who previously served to defend our country. Unfortunately, some really bad actors in the financial marketplace have targeted them. For example, in December 2023, the Consumer Financial Protection Bureau sent $6 million in financial relief for veterans who were harmed by illegal lending practices.
▶ 2:56:03Five individuals and their companies misled veterans and other consumers into selling their pension and disability payments, which is illegal under federal and relevant state law. So why do Republicans want to slash the CFPB's funding by 70%. It just makes no sense. And if they're successful, veterans will no longer have a strong watchdog to protect them from these kinds of bad actors going forward.
▶ 2:56:32Moreover, I was troubled that the Trump administration fired, actually fired some veterans who worked at the CFPB before they realized what they did and were later directed by the Office of Personnel Management to rehire uh these veterans. This administration is harming our veterans on a daily basis and it's high past time that Congress stand up to protect our veterans. And so, Mr.
▶ 2:57:01Chairman and members, when you listen to the rhetoric of both Democrats and Republicans about their care and concerns for veterans and how members of Congress are anxious uh to be with veterans at their post and on special days where we honor them, we talk about how much we appreciate them and the fact that they sacrifice for all of us,
▶ 2:57:31particularly if they served uh in any branch of the armed services and they were in war, etc. And so what is all this rhetoric about uh if we're telling them every day how much we care about them, how much we want them uh to have safe and secure housing when they return uh from their assignments in different parts of the world. Yes.
▶ 2:57:57How is it uh that we work very hard to make sure that they have special places to bury them? How is it uh that we know that too many of our veterans before the VAS program were living under bridges and in temporary tents on the street? And how many of us tell our constituents what we're doing for our veterans?
▶ 2:58:21And in many of the programs we go to, we ask all of the veterans, please stand up and be recognized. And we do all of this. We talk all of this. And here we have the cutting of the Consumer Financial Protection Bureau that has done special work in making sure uh that they assist veterans who have been ripped off uh by these lenders and have them selling
▶ 2:58:52uh all of their information that I've alluded to as I gave my uh response and my support rather uh for this important legislation. And so my question today uh to my friends on the opposite side of the aisle, you've been known everything today. And I get it. Uh you've been told uh by the president of the United States what they want uh in the budget resolution.
▶ 2:59:22You've been told what to do in reconciliation and nobody crosses him. And it is not because some of you don't believe in the support that we're providing for our citizens and particularly our veterans. It is because you are towing the line. You are absolutely following the orders. You do not want uh to be on the wrong side of President Trump because he will retaliate.
▶ 2:59:48He's threatened you and told you that he will run primaries against you. Come on. Let's have some courage. Let's stand up for the veterans. Even if you say no to everything else as you've been doing today, it's now time for you to say no. Uh I'm going to stand up for the veterans. I'm going to say yes uh basically uh to this resolution.
▶ 3:00:12So I ask for your sincere support and I ask you to do it in such a way that we send the message from all of us serving in the Congress of the United States. We want our veteran to know we really do support them. I yield back. Gentlewoman yields back. Who seeks recognition? Not seeing uh uh members seeking recognition. The chair recognizes himself on the waters amendment.
▶ 3:00:41This amendment seeks to make policy changes that we're not going to address in the markup today. To reiterate, everything in the underlying bill has budgetary impacts and will get our country back on the road to fiscal I'm so grateful for our ranking member and her comments about our bipartisan mutual support, affection for, and legislative work, and support of uh our veterans.
▶ 3:01:07But I urge my colleagues today, as this is a policy amendment, to vote no on this amendment. Does the gentleman from South Carolina still insist on his point of order? Mr. Chairman, I remove my point of order. He does not insist on his point of order. Is there further debate on this amendment? Hearing none, the question now occurs on the amendment offered by the gentleoman from California. All those in favor, please say I. I. All those in uh opposed, please say nay. Nay. Uh the naysay have it.
▶ 3:01:36And the amendment is not agreed to. The ranking member requests a recorded vote. All those in favor of record vote, raise your hand. A sufficient number having raised their hands. The record vote is so ordered pursuant to subsection C5 of rule three of the committee rules. Further proceedings are postponed. We'll now move to our next amendment. Who seeks recognition? Mr. Chairman, the gentleman from New York. I have an amendment at the desk. Gentleman has an amendment at the desk. We'll wait for it to be distributed.
▶ 3:02:16We were talking about that yesterday. Mr. Chairman, can I reserve the point of order? The gentleoman from California reserves a point of order. Yes.
▶ 3:03:28Clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Velasquez of New York designated as 024. This is Rep. Velasquez second Without objection, amendment will be considered as read. Now turn to the gentleoman from New York uh to uh describe her amendment. Your Yeah. Thank you, Mr. Chairman.
▶ 3:03:53Section 53 guts the CFPB, reducing the bureau's budget by approximately 70%. The CFPB is the agency cracking down on junk fees, holding predatory lenders accountable, protecting service members from scams, tackling discrimination in economy, protecting students, and just yesterday we heard testimony about how the CFPB is creating a level playing field
▶ 3:04:23for community banks with the gypsies and big tech. President Trump, his co-president Elon Musk, and congressional Republicans are seeking to destroy the CSPB because they know it's working. In fact, it is remarkable to me that the Republicans are spending such a significant amount of their time seeking to destroy an agency the America that Americans overwhelmingly support.
▶ 3:04:54According to polls conducted just last month, twothirds of Americans favor the CFPB, including solid majorities across party lines in their effort to destroy the bureau from within section 503 slashes the CSPB budget and the funding it receives from the Fed. For FY25, the bureau's funding cap is estimated to be 823.1 million.
▶ 3:05:24However, Republicans dispense with past inflation adjustment and reduce the CSPV funding cap to 249 million, a reduction of approximately 70% for fiscal year 25. The new proposed funding cap of 249 million fails to provide the bureau with the resources necessary to carry out all its obligations, including issuing and carrying out its regulation.
▶ 3:05:54Yet, my amendment nullifies the application of section 503 as it applies to the CSPV enforcement of its rule rulemaking, essentially providing the CSPV with sufficient funding to enfor its rule.
▶ 3:06:11The CFPB has created rules to give consumers more control over their personal financial data, reigning an excessive overdraft fees to $5, enforce fair lending laws for commercial loans, and supervise large non-bank tech companies like X.com, Google, Amazon, and Apple who are seeking to gain access to our payment and financial system.
▶ 3:06:37In fact, since opening its door in 2011, the CFPB has delivered remediation and relief to consumers through its rulemaking while imposing fines on companies and individuals that break the law. The CFPB has provided more than $21 billion in relief to $25 million harmed consumers in the form of monetary compensation.
▶ 3:07:06principal reductions and cancelled debts among other things. During former director's Chopra's tenure at the bureau, lawb breakakers returned over $6 billion to compensate harmed consumers and paid more than $3.2 billion in civil monetary penalties.
▶ 3:07:26Slashing the bureau's funding for for enforcement of its rules opened the door for Elon Musk, Jeff Vessels, Mark Zuckenberg, and the Wall Street banks to pray on workingclass consumers. American consumers has spoken. They want a cop on the beat to protect them and enforce our federal consumer laws.
▶ 3:07:48Instead of seeking to tear down the CFPB, we should be working alongside the bureau to strengthen it so that it might better be able to serve the American people. That is what this amendment does and I urge my colleagues to support the amendment. I yield back. Gentlewoman yields back.
▶ 3:08:11Who seeks We'll we'll suspend just for a moment.
▶ 3:08:42I recognize myself. Um, so I oppose this amendment uh to ensure a more sustainable fiscal future for our country. House Republicans are working diligently to find savings in our committees by failing to decrease spending. This amendment would be detrimental to those efforts. Accordingly, I urge all members to vote against this amendment. Is there further debate on the amendment?
▶ 3:09:11If there is no further debate, the question now occurs on the amendment offered by the gentleoman from New York. All those in favor of the amendment shall signify by saying I. I. All those opposed shall signify by saying nay. Nay. In the opinion of the chair, the naysay have it. Nays have it in the amendment. Mr. Chairman, I ask for a recorded vote. Okay. Uh, a recorded vote is requested. All those in favor of recorded vote, raise your hand.
▶ 3:09:37A sufficient number having raised their hand to record a voters's order pursuant to subsection C5 of rule three of the committee rules. Further proceedings on the amendment are postponed. We will now move on to the next amendment. Mr. Chairman, uh, gentleman from Massachusetts is recognized. Thank you, Mr. Chairman. I believe I have an amendment at the desk. Gentleman has an amendment at the desk.
▶ 3:10:06Uh we will pause while the amendment is Chairman, that may I ask for a point of order? The the gentleoman from California has reserved a point of order.
▶ 3:10:21The clerk will report the An amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Lynch of Massachusetts designated as G01. This is his first amendment.
▶ 3:10:52Okay, the gentleman recognized recognized the the the gentleman from Massachusetts is recognized on his amendment. Thank you, Mr. Chairman. First of all, let me thank uh Chairman Hill for his kind gift of this uh survival kit for uh reconciliation. Much appreciated.
▶ 3:11:22Uh my amendment retains the CFPB's uh current independent funding structure to ensure that military service members are are protected. The Consumer Financial Protection Bureau is the only agency tasked with protecting American consumers as their sole responsibility.
▶ 3:11:42Since its inception, the agency has been cracking down on junk fees, holding mega banks and predatory lenders accountable, protecting service members from scams, which are abundant, tackling discrimination in the economy, and protecting students. Because of this work, the CFBB has delivered more than 21 billion in savings and and recovery to over 25 million harmed consumers.
▶ 3:12:09Unfortunately, my Republican colleagues are trying to defend this agency despite its proven track record, defund this agency despite its proven track record of protecting Americans. The Trump administration and Elon Musk illegally fired 90% of the employees, leaving I think there are like 50 people left over there.
▶ 3:12:32Notably, the entire Office of Military Service Affairs, which is dedicated to the singular purpose of protecting and empowering service members, veterans, and their families, was eliminated. You know, uh on the oversight committee, we've we've done a a number of uh uh visits down Codell's actually down to uh Fort Hood down at Texas. We've got some major problems down there.
▶ 3:12:55But when you come into the base, which which has about 70,000 uh service members there, young mostly young men and women, uh with some of them living in family housing with uh with kids. Um but as you're coming into the base, you notice outside the base just across the street, there are all these payday lenders and also uh these auto dealers with um you know, you can buy a car for $5 down.
▶ 3:13:24They don't they don't explain that, you know, the interest rate is like 30% on that that car loan uh to get that car. So, there's all kinds of scams both physically at our military bases and also uh there are, you know, unscrupulous uh predatory lenders that that scam our our young men and women in uniform. A lot of these kids are they're they're away on, you know, they they join the service right from, you know, living with their parents, young kids. They're not sophisticated.
▶ 3:13:51they're not financially uh adept at at uh you know what's out there. Some of them are getting their first big paycheck and and often times that's a that's that's a a recipe for for bad decisions.
▶ 3:14:06Um, so what this does, so now now because of the the Trump administration's uh decisions that that office that is is to protect it's set up just to protect these young men and women in uniform um that uniform that that that office is gone now. They've they've basically wiped that out.
▶ 3:14:31Um, and what makes it even worse that um, previously CFPB employed 210 veterans out of the people that have been laid off, including some disabled veterans and and all have been illegally fired. So, we're I'm part of the litigation group here on the House side, on the Democratic side. So, we're we're suing uh the administration to try to get these people put back. But in the meantime, these are men and women who have dedicated their lives to to serving their country.
▶ 3:15:01Um, you know, they're they're particularly vulnerable because, you know, they're they're in this position. And, uh, the threats of removing funding to the CFPB will have devastating consequences for the protection of these military service members and their So look, I understand here, you know, the the the overall mission is is to save money, but but our budget reflects priorities and and during my 25 years here
▶ 3:15:32in Congress, uh I have to say we've we've had wide agreement on on, you know, protecting uh military veterans and also those in active duty. So, you know, I I would just hope that that that spirit is still here in some respect where we can we can do a carve out here uh to make sure that uh that funding is replaced so that we have some level of protection for these kids.
▶ 3:16:01They're just that they're kids uh who who are are patriots and and are you know have have made a big big decision in their lives to serve their country which is honorable is noble and we should be grateful. One way to show our gratefulness is uh is to protect them and to restore the funding to the CFPB u service members unit. Thank you Mr. Chairman and I yield back. The gentleman back.
▶ 3:16:28Um, so I I appreciate u well I have to uh recognize myself for five minutes. I appre I appreciate the gentleman's interest in uh veterans and I trust that given his comments and I I know he's sincere. I know my friend is sincere in his in his support for veterans.
▶ 3:16:48But I I would hope that he and other members on the other side of the aisle would support the Republican NDAA and defense appropriations bills which uh lift pay for junior enlisted service members. Um however on on th this particular um I would just uh point out that uh that this reconciliation uh bill does not diminish uh in any way the bureau's uh activities related to the protection of service members
▶ 3:17:18and so I would oppose the amendment uh and gentleman yield. Be be happy to uh be happy to work together. Uh would the gentleman yield? will sir the the Mr. Chairman the the entire office has been wiped out. So so that that does that does impact you're not reclaiming my time reclaiming my time.
▶ 3:17:41Nothing in this bill uh in any way alters statutory law protecting service members and for that reason I do oppose the amendment and it does not um and happy to happy to work with the gentleman on uh service member issues and again encourage the gentleman to support Republican NDAA legislation which contin I always have raise service member pay.
▶ 3:18:06I always have junior enlisted service member pay which obviously uh undergurs the financial stability of these military families. Is there further uh I yield back. Is there further debate on the amendment? Will you yield me some time? Yeah. Uh uh the the gentleman from Illinois is recognized. Uh thank you, Mr. Chair. I I want to just quickly note like saying that statutory laws here. Let's not lose sight of the fact that many on this committee, I think including yourself, Mr. chairman have bills to dramatically reduce the statutory authority of CFPB.
▶ 3:18:36You all filed a lawsuit to defund the CFPB. Um the prior head of the CFPB in the last Trump administration refused to say down here that the job of the Consumer Financial Protection Bureau was to protect consumers. Um you either fund it or just admit that you're trying to screw consumers. But let's not let's not sugar coat what's going on here. Um I yield the best balance of my time to Mr. Lynch. I I thank the gentleman. Uh, Mr. Chairman, I ask unanimous consent to submit uh this article.
▶ 3:19:06Uh, looks like New York Times, new details emerge on Trump's official sprint to cut and gut consumer bureau staff. Um, is that is that so ordered? Mr. Chairman, I'm asking you unanimous consent. So, there you go. Thank you.
▶ 3:19:27Um, look, I understand we're not changing uh necessarily changing statutory law, but when you when you lay all the people off, when you fire all the people who are doing this protective work and then uh there's there's nobody to do the work. Now, um that's that's a funding and a and a budgetary issue.
▶ 3:19:51You're correct in that respect, but the the impact is to to stop people from protecting our our service members. And you know, this is happening at every base. I just gave the example of of Fort Hood because we've been down there a few times, members of of this committee as well. Um, and so they are constantly there is a constant threat to to our sons and daughters in uniform.
▶ 3:20:16Um, and the the military's doing their best to try to, you know, they'll they'll put on that armed services network and and try to alarm the the uh soldiers to to be careful and and be aware of this scam.
▶ 3:20:32But but the military that's that that is part of their job to warn people but to to provide redress and actually to to support our veterans that's been the that's been the the job of this this office and it is it is going away. Um so we're we're asking for a change here to put the cop back on the street that is protecting our our military. um men and women.
▶ 3:21:03And you know, I'm just saying over the past 25 years, I've had very little disagreement with my Republican colleagues who, you know, have joined with us on every occasion to to protect, especially young soldiers who are brand new and and uh you know, are are definitely exposed to this this threat and this danger. The scams are unspeakable.
▶ 3:21:29Um, like I said, there's at that one base, Fort Hood, there's 70,000 young soldiers, really, really young. And you know, so you've fired the people who were protecting them. That's that's I know that's a budgetary decision, but the impact is you leave these people unprotected.
▶ 3:21:49So, um, so the idea that we haven't done anything to to lower the protection against, uh, you know, protecting our our sons and daughters in uniform is is, uh, is bogus. Um, and and so let's let's let's get together here. Let's let's do what we should be doing. Let's do the right thing.
▶ 3:22:12Um, you can argue that, you know, that the CBO score and all that is is uh is supposedly preventing you from doing that, but may I remind the gentlemen, we've been through these reconciliations before, and the rule always is that you don't get a valid CBO score till you make the changes at the end of the legislative process.
▶ 3:22:39So, we're going through this legislative process and if we provide the CBO uh with the information that we as a Congress, Democrat and Republican, have decided to protect our sons and daughters in uniform and we're going to fund this office that does that work. Um, then they will they will give us a score that reflects that. It will be valid. It'll be accurate.
▶ 3:23:07But, uh, the legislation comes before the CBO score. Um, there may be CBO estimates, but until until they know what they're paying for, there's no valid score to rely on. So, uh, with that, Mr. Chairman, thank you for your courtesy. And, uh, I yield the time back to, uh, Mr. Casten. Gentleman yields. Uh, does the gentleoman from California insist on her point of order?
▶ 3:23:40The gentle lady withdraws her point of order. Is there further debate on the amendment? If there's no further debate, the question now occurs on the amendment offered by the gentleman from Massachusetts. All those in favor of the amendment shall signify by saying I. All those opposed shall signify by saying nay. Nay. The nays have it and the amendment is not adopted. Gentleman has requested a uh a recorded vote. All those in favor of a recorded vote wrote vote raise your hand.
▶ 3:24:10A sufficient number having raised your hand a recorded vote is ordered. Pursuant to subsection C5 of rule three of the committee rules further proceedings on the amendment are postponed. We will now move on to the next amendment. Mr. Chair, uh quorum is not present and I would uh make a point of order that a quorum is not present. Uh the chair shall count for a quorum.
▶ 3:24:32Two, three, four, five, six, seven, eight, nine, 10, 12. We're at 12.
▶ 3:26:32A quorum is now present. The committee shall resume its business. Is there further discussion? Is there further discussion, Mr. Chair. Um, could I have a formal count? Uh, okay. Okay. One, two, three, four. The clerk. The clerk. The clerk. Okay.
▶ 3:26:59The member of Congress, raise your hand. Yeah. So, I I request the clerk to call the role.
▶ 3:27:40Yeah. Call. A roll call vote has been requested. The clerk will call the role.
▶ 3:29:20Have all members voted? A a quorum is present. The committee shall resume its business. Is there further discussion? For what purpose does the gentleman from Illinois seek recognition?
▶ 3:29:50I have an amendment at the desk. We will pause while the amendment is distributed. We will pause while Foster
▶ 3:30:2027 is Mr. Chairman, point of order. The the gentle lady reserves a point of order.
▶ 3:30:50Thank you. The clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Foster of Illinois designated as 027. This is his first Without objection, the amendment is considered read. The gentleman from Illinois is recognized on his amendment. Uh thank you, Mr. Chairman.
▶ 3:31:20Uh throughout the last Congress, my colleagues across the aisle had no shortage of questions and complaints to share with the former CFPB director Chopra. But one area where members of both parties agreed is that more needs to be done to protect American sensitive financial data. Director Chopra agreed and he issued a final rule to implement section 1033 of the DoddFrank Act called the required rulemaking on personal financial data rights.
▶ 3:31:49In fact, the former chairman of this committee, Patrick Mckenry, uh said that the rule was quote a promising step forward to protect Americans financial data privacy. I agree with our former Republican chairman and when he says that quote consumers should know where their data is going, how it's used, and be able to terminate the collection of their data by certain firms. The director engaged with Congress in a bipartisan fashion to make changes to the proposal before finalizing the rule.
▶ 3:32:18A rule that I consider one of the most significant federal protections for data privacy on the books today. The rule states that financial companies can only collect, use, or retain your data if it is necessary to offer the services that they are offering. It also allows consumers to tell firms to delete their data if they choose to do so. This protects Americans from companies that would otherwise secretly harvest their information for use in targeted advertisements or to sell to the highest bidder for a profit.
▶ 3:32:48The 1033 mandatory rulemaking also brings America closer to open banking, which means that consumers have more freedom to transfer their accounts away from financial treat firms that have treated them poorly and make it easier for them to find a firm that better suits their needs. Uh, it's called free market competition and it works. This rule is good for privacy and good for competition.
▶ 3:33:13And my amendment ensures and makes clear that despite the the budget cuts made by this bill, the CFPB will have access to the resources it needs to fully implement and enforce this rule. The CFPB, despite the concerns that some of my colleagues have, plays a vital role in protecting consumers, and certain rules like this one, should be preserved and implemented.
▶ 3:33:36A 70% cut to the CFPB budget would dramatically strain its resources, leaving this rule unfinished and undermining the many consumer protections that only the agency can enforce. I agree. I encourage my colleagues to support this amendment and will that will preserve the effectiveness of the CFPB's rulemaking on personal financial data rights, protect Americans privacy, and increase competition in the financial sector. Thank you. I yield back. The gentleman yields back.
▶ 3:34:04The chair now recognizes himself for substantially less than five minutes. The committee print offers much needed solutions to bring down federal spending. The gentleman's amendment proposes to undo these savings. This is a step in the wrong direction and I urge my colleagues to reject this amendment with a no vote. Uh, does the gentleoman from California insist on her point of order? No. Uh, the the gentleoman withdraws her point of order. Is there further debate on the amendment?
▶ 3:34:36Oh, yes. Um, yeah. The gentleman from Illinois is recognized. Uh thank you. I yield my time to Mr. Foster. Yeah. Well, just very briefly, um this does not affect the the budgetary allocation to the CFPB under this bill. Uh so it does it is budget neutral. Um and and the other thing is just a general comment that is on the narrative that we've been hearing throughout this.
▶ 3:35:04You know, we all know this is about a $7 billion uh $7 trillion uh tax break for the very wealthy and large corporations in our country. And the the narrative that somehow we're teetering on the on the precipice is just simply quantitatively false. You know, the the the wealth of America is about $ 160 trillion. Our national debt is approximately approximately $30 trillion.
▶ 3:35:34there is more than enough money uh to in this uh in in this country uh to uh you know do the right thing and fund important things like the CFPB that is so important to the protection of Americans. And so uh despite all of that this this will not affect the deficit. It simply ensures that this specific valuable part of the CFPB's mission is continued and yield back. Gentleman yields.
▶ 3:36:03Is there further debate on the amendment? If there is no further debate, the question now occurs on the amendment offered by the gentleman from Illinois. All those in favor of the amendment shall signify by saying I. All those opposed shall signify by saying nay. Nay. In the opinion of the chair, the nays have it. The naysay have it and the amendment is not adopted. Request request a recorded vote. A recorded vote is requested.
▶ 3:36:33All those in favor of a recorded vote raise your hand. A sufficient number having raised their hand, a recorded vote is ordered. Pursuant to section C5 of rule three of the committee rules, further proceedings on the amendment are now postponed. We will now move on to the next amendment. For what purpose does the gentleman from Illinois seek recognition? I have an amendment at the desk.
▶ 3:37:02We will pause while the amendment is distributed. This amendment foster. It's on AI and emergency technology 28.
▶ 3:37:33Chairman, I would like to again request uh to reserve point of order. The the gentleoman from California has reserved a point of order.
▶ 3:38:30The clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Foster of Illinois designated as 028. This is his second The the gentleman is now recognized of his amendment. Thank you, Mr. Chairman.
▶ 3:38:58U members of this committee are well aware of the rapid innovation taking place in the financial sector. We've held hearings regularly about the opportunities presented by artificial intelligence, blockchain, and other emerging technologies. These technologies are revolutionizing the way Americans engage with financial institutions. They're streamlining customer service, improving underwriting, and generally making financial services faster and smarter. Innovation also co comes with a certain degree of risk.
▶ 3:39:26Consumers, regulators, and firms find themselves constantly encountering new business models and services that they might not fully understand. It's essential for these technologies, especially in the financial sector, to be adopted in a responsible manner. Last Congress, our committee established a bipartisan working group on artificial intelligence, which I joined as a ranking member of the subcommittee on financial institutions and monetary policy.
▶ 3:39:51While also sitting on Speaker Mike Johnson's House AI task force, our committee identified several areas of consumer finance where artificial intelligence can generate significant risks. While I believe that many of these risks can be managed, it is essential to have a welle equipped regulator monitoring for abusive practices. Some of the issues included algorithmic bias in lending, credit scoring, and housing decisions.
▶ 3:40:15Uh data privacy concerns and as many AI models rely on vast amounts of consumer data for training and this can be inadvertently revealed by large language models and transparency and accountability challenges stemming from models that you can't tell how they made their decision are really hard to deal with. Nearly all of these concerns fell entirely or partly within consumer finance uh with the CFPB being the lead agency overseeing the industry.
▶ 3:40:43The CFPB issued a final rule last May that aims to protect home valuation models from conflicts of interest manipulation and digital redlinining. In 2022, the CFPV clarified that blackbox algorithms where the input simply cannot be explained uh should not be used as the sole reason to turn down a consumer loan. I should say the input or the output cannot be fully explained uh should not be used as the sole reason to turn down a consumer loan.
▶ 3:41:12They clarified that targeted advertising using AI models to offer abusive financial products can be considered a violation of consumer rights. And in August of last year, the bureau proactively solicited information from the public regarding the uses, opportunities, and risks of artificial intelligence in the financial services sector.
▶ 3:41:32There currently is no other regulator tasked with monitoring the adoption of emerging technologies in consumer finance, and it would be a mistake to kneecap an agency that is focused on the cutting edge of innovation. Significant budget cuts to the CFPB will stop or severely limit this important work. My amendment will ensure that the CFPB has the resources available to monitor and respond to emerging technologies like artificial intelligence by guaranteeing them the necessary funding.
▶ 3:42:01The opportunities and risks of financial innovation that Americans expects Congress to preserve um and they and also the protections that they've come to expect. I encourage my colleagues to support this amendment and to ensure that new technologies are implemented in a way that serves their interest.
▶ 3:42:19And if my colleagues decide not to support this amendment, there will come a moment when we have the CFPB director in front of this committee and we will we will ask them why have you not defended the consumers against artificial intelligence and oncoming technology? And they will say I'm sorry, we simply don't have the money. and that comes back to the vote that we are about to take in this committee. So, thank you and I yield back. The gentleman yields back.
▶ 3:42:48Um, does the gentleoman from California insist on her point of order? The gentle lady withdraws her point of order. Um, I now recognize myself for five minutes. Uh, while I do appreciate my colleagues interest in this important issue, I cannot support the amendment at this time. The committee print has been worked on and vetted by our members on the committee and changes here could undo the appropriate balance that was struck. Accordingly, I urge my colleagues to vote no on this amendment and I yield back.
▶ 3:43:16For what purpose does the gentleman from Illinois seek recognition? Move to strike the last word. Gentlemen move to strike the last word. Gentleman's recognized. I want to thank Dr. Foster for introducing this amendment and supported and and I just want to challenge the chair again that claiming this is a well-crafted piece of legislation is a I guess wellcrafted is doing a lot of work in that sentence.
▶ 3:43:38Um the this amendment simply ensures that the CFPB would at least have adequate funding to continue protecting consumers. In other words, our voters, the people we represent from unfair, deceptive, or abusive acts or practices related to artificial intelligence and other emerging technologies. Um, recall back in 2019 when Chair Waters was the chair, we created a task force on on fintech, also a task force on artificial intelligence, and if I recall, I think I think Dr.
▶ 3:44:08Foster, you were the head of that committee exploring how the financial sector was beginning to use AI and what the benefits and risks might I I I remember a particular moment in one of those hearings where we had where we were talking about what would happen um and this actually did happen. Credit card companies advertising on Facebook, Facebook's algorithms using AI trying to maximize revenue but not obviously optimizing to comply with the Fair Lending Act.
▶ 3:44:38Who is who is liable in that situation? Who has the resources to check that? We got in a rich conversation with the CFPB. Um ultimately I think director Choper led it um led litigation on that. But to even understand that question you have to have resources inside the CFPB to understand the question data science to anal data scientists to analyze it. computer programmers who can understand even before getting into who's responsible.
▶ 3:45:04Mortgage underwriting, credit card approval, AI is already being used in ways that can comply with law or can violate the law, can amplify discrimination or reduce it. We know that AI systems can reflect and replicate bias, particularly against communities of color. Dr. Foster, I think you've mentioned many times that if all you do is say, "Let's just optimize for things that make you a good credit score." Well, having a rich cousin might make you a good credit score.
▶ 3:45:30Um, having a rich cousin, given the histories of bias in our society, might also mean you're white. That's illegal, right? How are we going to make sure that we do this? So, before uh Trump's team took over and decided to fire all the police, the CFPB was actively confronting those risks.
▶ 3:45:49It is a choice right now in this allegedly well-crafted legislation to slash the CFPB's budget to not focus on those AI issues just as it is becoming increasingly integrated in our financial industry. Now, Dr. Foster had mentioned some of the areas where we might look forward and regret this. Here's one you all ought to be thinking about. How much data about consumers did Elon Musk hack out of the Treasury payment system?
▶ 3:46:18What 25-year-old punk is sitting on a USB drive full of data? Maybe director Bent will tell us that when he's here next week because he hasn't answered the the letter that we sent him uh asking for that information. That was all illegally taken. Elon Musk is now saying he wants to use X as a payment system. Is he using that data? Data that was illegally taken on every one of our consumers. I see some diehard libertarians on this community. You all ought to be ripped. Not going to say it. You know what I'm saying?
▶ 3:46:48You ought to be you would be jacked about right now. We could have a CFPB that gives a damn about stuff that you don't give a damn about. Or we could be sitting here a couple years from now saying we've got a massive crisis where the people we represent have had their data taken, illegally used, block them from loan, block them from access to mortgages. They're out of homes. They're defaulting on their mortgages because we sat here and passed this well-crafted document.
▶ 3:47:18Come on, y'all. The use of AI isn't slowing down in consumer finance. This amendment simply ensures that the CFPB can keep pace with industry innovation to hold bad actors accountable and to hold folks accountable who might not be intentionally bad, but just inadvertently the AI model got away from them. What's wrong with that? Who'd you come here to represent?
▶ 3:47:46Now, to be clear, this isn't innovation, but as I've said many times on this on this committee, Walter White was a great innovator. Innovation per se is not a thing. The job of government is to make sure that we direct innovation to things that deliver the greatest good for the greatest number. And that includes those of us on this committee where we have the capability to do that. and when we don't the folks in the comm in the agencies that we have oversight over.
▶ 3:48:17So I urge members to support this amendment to please at some point in this hearing stand up for what's right not just the stuff that Donald Trump told you to do. We are a co-equal branch after all. I yield back. Gentlemen yields back. Is there further debate? Question now occurs on the amendment offered uh by the gentleman from Illinois. All those in favor, please say I. I. All those opposed, please say nay. Nay.
▶ 3:48:45In the opinion of the chair, the nays have it. And the amendment is not adopted. Request recorded vote. The gentleman from Illinois requests a vote. A recorded vote being requested. All those in favor recorded vote, raise your hand. Sufficient number having raised their hands. Uh recorded vote is so ordered. pursuant to subsection C5 of rule three of the committee rules. Action on this uh vote is postponed. We will now move to the next amendment.
▶ 3:49:14Is there someone seeking recognition? Mr. Foster, gentleman from Illinois. I have an amendment at the desk. Amendment is this. We'll pause for a minute while it is distributed. Uh Mr. Sure. I'd like to reserve a point of order. Vice Chairman reserves a point of order.
▶ 3:50:06preserving the consumer database, the complaint database, which I'm have a
▶ 3:50:37The clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Foster of Illinois designated as Foster 029. This is his third amendment. Uh without objection, the amendment will be considered as read. And now I will turn to the gentleman from Illinois, the author of the amendment for five minutes. Uh thank you, Mr. Chairman.
▶ 3:51:04You know, there's a saying in engineering and in science that you can't fix something if you cannot measure it. In the run-up to the 2008 financial crisis, American consumers were facing an epidemic of predatory lending practices, hidden fees, and other unscrupulous business practices that weakened them uh in the eventual economic downturn. And we had no idea what was going on in so many areas at that time.
▶ 3:51:28There was a clear lack of accountability and transparency in consumer finances that played a large role in that crisis. And it was quickly determined by members of this committee that that needed to change. Consumers had little recourse to address abusive practices or to spread the word about shady lenders that had taken advantage of them. Follow.
▶ 3:51:47So following the crisis, our committee wrote the DoddFrank Wall Street Reform and Consumer Protection Act, which created the CFPB as the sole entity to enforce consumer protection laws for common types of consumer loans, mortgages, student loans, credit cards, auto loans, etc. Now, one of the responsibilities given to the bureau was to establish the consumer complaint database. That served a dual purpose.
▶ 3:52:10One, to allow consumers to submit complaints via the CFPB to financial companies and actually get a response. Because it turns out, it may not surprise you, that that financial companies found that they could just put consumers on hold if they had a complaint long enough that they'd get discouraged and quit. They have a harder time do that doing that if you file a complaint through the CFPB. and it was much more effective.
▶ 3:52:33In 2023 alone, the CFPB routed more than 1.3 million consumer complaints to financial companies and was able to secure a response in over 1.2 million of them. This includes nearly 85,000 complaints from US service members and 332,000 complaints from older Americans. Since its creation, the CFPB has received more than 8.8 8 million complaints from consumers about financial products and services.
▶ 3:53:02The second purpose of this consumer complaint database is to build a public record of complaints against financial firms. Consumers, regulators, and industry participants can then see the record of these firms and take appropriate acts of action, including perhaps not to do business with them if they're repetitive bad actors. Consumers may choose to avoid a lender with a bad record.
▶ 3:53:24Regulators may identify unlawful practices and other industry participants have more insight into potentially troublesome practices knowing that they can be held accountable. With the steep cuts in to the CFPB budgets proposed in this legislation, it is unclear whether the agency will have the resources necessary to keep this valuable tool running and running as it should.
▶ 3:53:50That is why I am offering this amendment that will provide the bureau with the necessary resources to keep the consumer complaint database and the valuable information that it contains available for public use despite the steep cuts and other in other areas of the bureau's work. And I guess we're all none of us would be very surprised if the number of unanswered consumer complaints skyrocketed after the budget was cut.
▶ 3:54:14And uh this also preserving the database at least provides an amount of sunlight on how effective the CFPB has is being and delivering for consumers as we go forward. So I encourage my colleagues to support this amendment and to preserve the transparency that the consumer complaint database has brought to consumer finance. Thank you and I yield Gentleman yields back who seeks recognition. The gentleman from Georgia, Mr. Loudermilks recognize the strike the last word.
▶ 3:54:44Thank you, Mr. Chairman. We cannot continue continue to allow our government to spend money like there are no consequences. The underlying bill takes reasonable steps to reduce expenditures and begin to correct Washington spending. The proposed amendment before us looks to undo the provisions in the committee print. I urge my colleagues to vote no on the amendment. I yield back. Gentleman yields back, seeks Mr. Mr. Casten of Illinois recognized.
▶ 3:55:15Uh, thank you, Mr. Chair. I would I would once again point out that it is mathematically dumb to say that cutting the CFPB is spending money like it's going out of style. Recall that the CFP returns more money to the American taxpayers than it charges. Um, I'll give you a second. If you have a bigger number and you subtract from that a smaller number, you're left with a positive number, not a negative number.
▶ 3:55:41Defunding the CFPB does not reduce deficits. Like thank Representative Foster for offering this amendment. Now, he's a physicist, so maybe he understands that math. Um, all this amendment would do is ensure that the CFPB retains current funding to ensure that the consumer complaint database will remain in operation to ensure that financial institutions respond to the complaints they receive. Now, let's talk about the size of that bigger number.
▶ 3:56:10Over the last 14 years, the CFPB has su successfully obtained over 21 billion in relief for 200 million people, including constituents of every single one of us in this room. That's $21 billion that they were legally entitled to. It was their money. CFPB got it back for them, which meant that they could then buy a home, spend some money, invest in the stock market, all the things that we all like to do with our money, which help grow the economy.
▶ 3:56:40How'd they get that data? Through the consumer complaint database. It's not hard. They get about 25,000 consumer complaints every year, and they send those on to financial institutions. That's how they work. to keep money in people's pockets through their oversight. Now, I realize this is very partisan right now. Donald Trump has tariffs that are going to take $4,900 a year out of Americans pockets. Donald Trump has managed to collapse the stock market, which is collapsing people's 401k.
▶ 3:57:09He's managed to do that in a way that's also driving foreign investors out of the economy. So, foreign investors are not only walking away from US equities, but they're also walking away from treasuries, which is causing the 10-year Treasury to go up and increase mortgage rates, increase Americans borrowing costs. Um, we've got reports out this week that the GDP shrunk after extended periods of growth under Biden. I get it. The Republican party is committed right now to taking money out of people's pockets.
▶ 3:57:39The CFPB is designed to fix that and put money back in people's pockets. And I hope that y'all can get on board at some point hopefully today with this amendment. We need to defend the institution that protects American consumers. I urge members to support and I yield back. Gentleman yields back who seeks recognition.
▶ 3:58:03Not seeing further members, the chair will recognize himself for I don't I can't support support this amendment because in my view to ensure a more sustainable fiscal future for our country, we've got to diligently find savings in our committees. That's the charge from the House Budget Committee. By failing to decrease spending, this amendment would be detrimental to those efforts.
▶ 3:58:29I also would suggest that reducing the funding to 5% uh in my view preserves the title 10 of DoddFrank's obligations of the core statutory functions. I urge all members to vote against this amendment and I yield back the balance of my time. There no further debate. The question now occurs on the amendment offered by the gentleman from Illinois. All those in favor please say I. I.
▶ 3:58:59All those opposed, please say nay. Nay. In the in the opinion of the chair, the nays have it and the amendment is not agreed to. Request a recorded vote. Gentleman from was of Illinois requests a recorded vote. All those in favor, please raise your hands. A sufficient number having raised their hand to recorded vote is so ordered. Pursuant to subject subsection C5 of rule three of the committee rules, uh, action will be postponed. We'll now move to the next amendment. Who seeks recognition?
▶ 3:59:29Uh, the gentleman from California. Thank you, Mr. Chair. Number 13 is at the desk. We'll wait for number 13, Licardo amendment to be distributed. Thank you very much. Mr. Chairman, Mr. Laddermouth, I reserve a point of order.
▶ 3:59:56Gentleman reserves a point of clerk
▶ 4:00:45will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Licardo of California designated as Licardo 013. This is third amendment. Without objection, the amendment will be considered read. And I turn to the gentleman from California to describe his amendment. Uh thank you, Mr. Chair.
▶ 4:01:10Uh this amendment calls for the director of the Bureau of Consumer Financial Protection, who might be the last employee standing at the agency, uh to uh determine whether or not amendments proposed by the subsection A would take away payments of those financially harmed by corporate malfeasants. I believe they will, but I think we need a direct answer before we act on this particular change to the law.
▶ 4:01:35Uh the limitation as contemplated here of the use of the civil penalty fund to only compensate those victims who are directly harmed by a direct case will undermine the very purpose of the civil penalty fund which is to compensate harmed consumers uh where they may otherwise receive no compensation for their harm.
▶ 4:01:58Uh let's remember the civil penalty fund was established as a fund not merely as a facilitator of restitution because of recognition that we'll need civil penalties from one case in order to compensate uh those harmed consumers in other cases where there may be no money left to be able to assist them after they've been devastated by fraud or malfeasants.
▶ 4:02:22We know that many fraudulent financial enterprises lack money at the end of the day after they've done with their fraud and the many lawsuits that follow. Uh they will lack the money to fully compensate victims of that fraud. Uh if this provision is adopted without further study, millions of devastated victims will be left out in the cold.
▶ 4:02:42Uh for example, quite recently, $1.8 8 billion in refunds was allocated from from junk fees that were imposed on 4 million consumers harmed by the Lexington law and credit repair uh case in 2024 25. that entity that business of course was had filed chapter 11 by the time that these payments were being made.
▶ 4:03:09We need to be able to have a source of funds to compensate harmed victims or else we're going to leave millions of scammed Americans out in the cold. Thank you. I yield. Gentleman yields back. Who seeks recognition? The gentleoman from California is recognized. I thank Representative Licardo for offering this very good amendment. Americans are tired of being ripped off by corporations left and right.
▶ 4:03:39Part of the reason we established the Consumer Financial Protection Bureau was to give consumers a place to go when they are harmed by large financial companies. And they worked hard every day to hold bad actors accountable and to make sure consumers got their money back and were made whole. Sometimes those bad actors go bankrupt after they harm people. and Congress established the civil penalty fund to ensure there was a way those harmed consumers could be made whole.
▶ 4:04:08We should make sure that any consumer was harmed by corporate malfeasants could be fully remediated and this amendment would help ensure that I urge members to support this amendment and I yield back. Gentleoman yields back. Does the gentleman from Georgia maintain his point of order? No, Mr. Chair. Is there any further debate?
▶ 4:04:34Hearing no further debate, the question now occurs on the amendment offered uh by the gentleman from California. All those in favor, please say I. I. I. All those opposed, please say nay. In the opinion of the chair, the nays have it. The amendment is not agreed to. Gentleman from California, request a recorded vote. Thank you. Gentlemen, request a record vote. Uh please raise your hands if you support a recorded vote. sufficient number having raised their hands or record a vote is so ordered.
▶ 4:05:02U pursuant to subsection C5 of rule three of the committee rules action on that vote will be postponed. We now turn to the next amendment. Who recognition? Gentleman from Connecticut, Mr. Heimmes. Uh thank you, Mr. Chairman. I have an amendment at the desk. If you'll pause, we'll have that amendment distributed.
▶ 4:06:27Clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Heimmes of Connecticut designated as G10. This is his first The without objection, the amendment will be considered as read. And I now turn to my friend uh from Connecticut to describe his amendment. Mr. Times. Thank you uh Mr. Chair.
▶ 4:06:51Um you know, as we have these conversations about uh about restructuring the CFPB, um a lot of these are fair policy issues. One issue this amendment seeks to address, however, um is that the civil penalty fund as proposed by the majority now would no longer uh be available uh to make whole the uh many
▶ 4:07:21people who suffer bad consequences as identified by the CFPB. Um, and this amendment is designed to make sure that even as we make these reforms, our veterans, um, who are so disproportionately affected by the kinds of scams one sees outside of military um, would still be eligible for compensation from the civil penalty fund.
▶ 4:07:49I don't think I need to tell anybody in this room that the men and women who serve our country face enough pressure in their lives without having to worry about predatory financial practices. Um and yet according to the Army Reserve, financial stress is the second leading contributing factor in service member suicides. Nobody should be comfortable with that fact and we should take special account of this population as we think about reforming or changing the CFPB.
▶ 4:08:20In fact, the 2023 annual report from the Office of Service Member Affairs at the CFPB listed nearly 85,000 complaints from active duty service members and veterans about issues ranging from credit reporting to debt collection or car loans. This is an increase in complaints across every major consumer financial product with former former service members suffering significantly higher losses than others.
▶ 4:08:47Scammers specifically prey on veterans in many cases unacredited claim agents target them for their pensions or disability compensation using deceptive Service members also see increased financial risks in the auto lending market where they face higher interest rates, longer loan terms, and higher monthly payment compared to civilians. They report higher rates of harassment from debt collectors, often regarding debts um that they don't even owe.
▶ 4:09:16So, the men and women who serve our country deserve better than this, especially given the explicit harm that is done to this vulnerable population. And traditionally, the CFPB has offered a critical lifeline to those suffering from financial exploitation, especially our veterans.
▶ 4:09:32The CFPB in recent years has taken significant action to protect service members, veterans, and their families, including by ordering the refund of $95 million in illegal overdraft fees charged by a financial institution, suing and ordering civil penalties for predatory pawn and title lenders who violate the Military Lending Act, and shutting down deceptive mortgage lending and advertising practices that claim affiliation falsely with the VA.
▶ 4:09:58As of November of last year, the CFPB's enforcement actions involving actors that harmed service members and veterans secured $363 million in financial relief. This amendment preserves some of the protections provided to those who are putting their lives on the line to protect our families and communities by restricting predatory financial practices aimed at our veterans and service members.
▶ 4:10:22It would help alleviate some of the stress caused by aggressive and manipulative tactics and help to Americans in uniforms focus on their mission and their families. I urge my colleagues to support this amendment to protect our nation veteran our nation's veterans and service members. And with that, thank you, Mr. Chairman. I yield back. Gentleman yields back. Who seeks recognition? The ranking member. Thank you. I move to strike the last word. Gentleoman's recognized.
▶ 4:10:47I thank Representative Heimmes for offering this amendment to protect our service members and veterans. The service member and veteran population includes more uh than 1.3 million active duty service members, 1.5 million family members of active duty uh service members, 766,000 members of the National Guard and Reserve, 974,000 National Guard and Reserve family members, and
▶ 4:11:1717.9 million veterans. All of these people who have done so much for us and they deserve strong consumer protections. What did the Consumer Financial Protection Bureau do for them? They did they sit idly by while these people got ripped off by payday lenders and other bad actors? No.
▶ 4:11:37They were aggressive and took 45 different public enforcement actions to secure u $363 million in relief for harmed service members and veterans. This included six enforcement actions against companies that violated the Military Lending Act. We should not be defunding the agency that has done so much to protect our brave service members and veterans.
▶ 4:12:02Even if you don't like the CFPB, I hope members will support this amendment so we can ensure service members and veterans have the protections they deserve. I yield back. Balance of my time. The gentleoman yields back. Does the gentleman from Georgia retain his point of order? I do not, Mr. Chair. Is there further debate? Hearing none, the question now occurs on the amendment offered by the gentleman from Connecticut, Mr. Heimmes. All those in favor, please say I. I.
▶ 4:12:33All those opposed say nay. Nay. In the penant chair, the nays have it. The nays have it and the amendment is not agreed to. Gentleman from Connecticut. Mr. Chairman, I request recorded vote. Gentlemen, requests a recorded vote. Ra members should raise their hands if they're supportive of a recorded vote. Sufficient number having raised their hands. Record vote is so ordered. Pursuant to subsection C5 of rule three of the committee rules further proceeding are postponed.
▶ 4:13:02We'll now turn to the next amendment. Who seeks Mr. Chairman, I have an amendment at the desk. Uh the gentleoman from Georgia has an amendment at the desk. If you'll pause, we'll have it distributed.
▶ 4:14:03Mr. Chairman, gentleman from Georgia like to reserve point of order. Gentleman reserves a point of order. Clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Williams of Georgia designated as G11. This is her second Without objection, the committee will be considered as read.
▶ 4:14:33The gentleoman from Georgia is recognized for five minutes to describe her amendment. Thank you, Mr. Chairman. It probably won't even take five minutes because the amendment is very short and simple. It's the idea that my amendment would prohibit the White House, regardless of who is president, a Democrat or Republican, from reviewing and approving the Consumer Financial Protection Bureau's budget, guidance, and rulemakings to maintain its independence.
▶ 4:14:57The CFPB is independent so that consumers, consumers that we represent, no matter their zip code, are protected from fraud, abuse, and predatory practices. This is a safeguard and a lifeline for consumers. The CFPB was intentionally designed to be shielded from political pressures that could undermine its duties to protect our constituents.
▶ 4:15:17So my amendment simply prevents the president, again, Democratic or Republican, from unduly influencing the agency, just like we as legislators can't meddle with the agency by taking away his funding. The same should be true across the board. Because the CFPP is free to act in the best interest of consumers, the agency was able to cap overdraft fees, saving consumers five billion dollars annually. That's billion with the beall.
▶ 4:15:44And it was able to remove medical debt from credit reports, meaning 15 million Americans have no longer been hit with unfair credit penalties. Eroding this independence could embolden financial institutions to resume the risky practices that led to the 2008 economic crisis, disproportionately harming working families, people of color, and other marginalized communities. These are the communities that I fight for every single day in Congress. These are the communities who are seeing prices skyrocket under this administration.
▶ 4:16:15They already were struggling to afford to buy a home, send their kids to college, or just get ahead because of years of blocking investments in our people. And now, these are the same people who are going to be harmed the most if we gut the independence of their consumer watchdog on the beat. Exempting the CFPB from the White House rules, budget oversight, and guidance is not about shielding a rogue agency, y'all.
▶ 4:16:40It's about preserving a proven independent institution that protects millions of Americans from financial harm. Undermining its autonomy risk repeating the mistakes of the past with devastating consequences for consumers and our economy. So again, if you truly believe in protecting consumers like I know you all do, you will support this amendment so that the CFPB maintains its independence.
▶ 4:17:06I urge my colleagues to join me in legislating on a bipartisan basis on behalf of the people that we represent and pass my amendment. I yield back, Mr. Chairman. Gentlewoman yields back. Mr. Laddermack, do you uh reserve your point of order? I withdraw my point of order. Uh who seeks recognition. Mr. Donalds of Florida recognized. Uh thank you, Chairman. Um to the gentle lady, uh that brings the amendment. um she is a friend but uh this is one of those situations where we simply do not agree.
▶ 4:17:36Um there is not an agency that should be in existence that is exempted from review by the president of the United States, his team um or the office of management and budget regardless of who might be president of the United States. I'll go further. The CFPB as it was created and currently as it exists does not even come to Congress for appropriations.
▶ 4:17:59So you would have an agency with no ability to have any oversight or examination from the executive branch, no ability for Congress to be able to set its budgets or examine its spending habits. It would truly be an independent agency with no oversight whatsoever, which means it's not accountable to the American people, not accountable to the right to the representative of members of Congress who were elected by the United people of the United States or even be able to be held accountable by the president of the United States.
▶ 4:18:28depending on who the American people choose to elect. In my view, that flies in the very face of constitutional government. And so, look, I believe in consumer protections. I know the gentle lady from Georgia believes in consumer protections. We all want the public to be protected from predatory practices, but that does not mean that you create an agency with no accountability whatsoever.
▶ 4:18:50And um I do understand what my colleague is trying to accomplish, but let's be very clear that following this amendment would remove the CFPB from any accountability whatsoever. So then whoever happens to be in charge of the CFPB can literally make of that agency whatever they wish. No accountability is not how any agency should be operating. I would ask my colleagues to vote no on this amendment. Gentleman yields back. Who seeks recognition? Mr. Louder Milk of Georgia.
▶ 4:19:20Thank you, Mr. Chairman. This amendment seeks to make policy changes that we are not going to address in the markup today to reiterate everything in the underlying bill has budgetary impacts and will get our country back on path to fiscal health. I urge my colleagues to vote no on this amendment. I yield back. Gentlemen gentlemen yields back. Who seeks recognition? Ranking member. Thank you very much. Um I want to thank my colleague Miss Williams for her work on this important amendment.
▶ 4:19:47This amendment would prevent the office of the president including the office of management and budget from reviewing or making any chances uh to the budget of the CFPB and that includes co-president Musk. Also, they also cannot make any changes to any proposed rules or guidance issued by the CFPV before it is finalized. Do you all remember something called project 2025?
▶ 4:20:15The manifesto that President Trump claimed was not his plan for America. Well, Project 2025 outlines ways the Trump administration should dismantle the CFPB. Guess who wrote Project 2025? Russell Vaugh, who has been leading the charge in laying off CFPB staff and halting any enforcement supervision actions.
▶ 4:20:37This is also uh that President Trump and his oligarch organization can get away with uh profiting uh financial fraud through his various business ventures. It is no coincidence that whatsoever that President Trump launches um a mini a meme coin and a month later the SEC says it will not regulate memecoins.
▶ 4:21:04It is no coincidence that President Trump's World Liberty Financial launches its own stable coin during the DC blockchain summit, the same event that Chairman Hill and Chairman Scott were discussing stable coin legislation. It is no coincidence that the C SEC announced it would not regulate Bitcoin mining and 10 days later, American Bitcoin was launched by President Trump uh two oldest sons.
▶ 4:21:33There's a clear pattern and practice that President Trump has gotten comfortable with. He wants to choke off any agency power while also having a heavy hand in legislation. Congressional Republicans like to present themselves as the party of law and order. Can't say that anymore. What law and what order? President Trump's orders from his oligarchy organization.
▶ 4:21:57And so uh you know I would like to point to the Federal Reserve and I am so pleased that Chairman Powell uh understood very clearly uh what the president could not do to him and he stood up against him because he would be victim uh to some of the president's uh crazy actions uh should he have been able uh to displace him.
▶ 4:22:23And so there's good reason why uh the president should not be able uh to do certain things. As a matter of fact, he thinks he can do all things. As a matter of fact, this president has stepped way over the bounds uh that any president has ever stepped in order to use his power in order to not only control uh like the Department of Justice uh but to seek revenge. Uh and he said so.
▶ 4:22:51Well, uh it was mentioned uh about um project 2025. Well, he said he didn't know anything about it. Uh he said that he had no involvement in it. Well, we know that that's not the truth uh that he has. And so, we have to be as vigilant as we can possibly be uh to do whatever we can do uh to keep uh agencies out of his hands.
▶ 4:23:21I know that the Constitution does not delineate what all he can't do. And so he's using executive orders to do whatever he wants to do. This is dangerous. This is something that no one expected would happen in the United States of America. And so we want him to keep his hands off of the Consumer Financial Protection Bureau. It has helped so many people uh who were victims of fraud.
▶ 4:23:49it has returned $21 billion dollars uh to many of our constituents. We have been ripped off. And so if we had not had the wisdom uh when we created the consumer financial pro protection bureau uh to make sure uh that neither uh the appropriations or uh the president or anybody else uh could rule and take over the consumer financial pro protection bureau.
▶ 4:24:16And I want to thank my colleague, Miss Williams, uh, for working on this amendment. Uh, with that, I yield back the balance of my time. The gentleoman yields back. Who seeks recognition? There's no further debate. The question now occurs on the amendment from the gentleoman from Georgia, Miss Williams. All those in favor, please say I. I. All those opposed, please say nay. Uh, in the pen chair, the naysay have it. The nays have. The amendment is not agreed to. Miss Williams.
▶ 4:24:47Recorded votes been requested. All those in favor of recorded vote shall raise your hand. A sufficient number having raised their hand or recorded vote is ordered. Pursuant to subsection C5 of rule three of the committee rules, further proceedings are postponed. We now turn to the next amendment. Who seeks recognition? Mr. Chair, I have an amendment at the Amendment at the desk. Let's wait for it to be distributed.
▶ 4:25:27Mr. Chairman, I'd raise a point of order. Gentle from Georgia reserves a point of order. Thank you.
▶ 4:26:28clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Binham of Oregon designated as G04. This is her first amendment. Without objection, the amendment will be considered as read. And I now turn to the gentleoman from Oregon to describe her amendment. We yield to you for five minutes. Thank you, Mr. Chair. My amendment ensures that our students have the protections they deserve when taking out student loans.
▶ 4:26:57The CFPB plays a critical role in protecting student borrowers from predatory lending and unfair practices. Mr. chair, we should be doing everything we can to support students working toward their future, making not making it easier for bad actors to take advantage of them. So, my team and I did a little bit of research and we believe that everyone who sits on this committee went to college.
▶ 4:27:23And the truth is not all of our parents could afford to send us to college. So, that's why some of us took loans out and worked our way through college so we could find ways to pay for our education. And I know there are members of this committee who have kids who took out student loans so they could pay for college. And we benefited by not being able by not being taken advantage of by predatory lending practices even though we didn't have any other options. Mr.
▶ 4:27:52Chairman, this amendment is about standing up for millions of Americans with student debt. In communities across the country, borrowers are working hard to repay loans, and they deserve a watchdog that ensures they're treated fairly. This kind of oversight is essential so that graduates, veterans, and hardworking families aren't prayed upon as they try to build a future. We should not be cutting the very agency that's fighting on their behalf.
▶ 4:28:20Today, student borrowers are facing more and more obstacles in financial strain. Between inflation and the economy slowing, people's budgets are tight. And last year, the CFPB's own ombbudsman reported a surge in complaints, servicesers losing paperwork, giving inaccurate bills, and leaving borrowers in costly limbo. So, Mr. Chair, now is exactly the wrong time to starve that effort of resources.
▶ 4:28:49My amendment simply ensures that the CFPB can keep doing its job protecting student borrowers. We should preserve these protections for our students seeking higher education, not pulling the rug out from under students and families who play by the rules. Thank you. And I urge my committee members to adopt my amendment so that we can continue to help students thrive. The gentleoman from Oregon yields back. Does the gentleman from Georgia pursue his point of order?
▶ 4:29:19I withdraw my point of order. Gentleman withdraws. Who seeks recognition? Gentleoman from California ranking back. Thank you, Mr. Chairman. I appreciate Representative Binham uh for working to ensure our student borrowers are protected by offering this important amendment. The Consumer Financial Protection Bureau has a student known that helps student bars who have questions and need help. This include bars who've had to deal with Naviant.
▶ 4:29:47In September 2024, the Consumer Financial Protection Bureau announced an enforcement action against the student loan serer Naviant for its words of lawbreaking as a result of the order entered in the CBFP's lawsuit. Naviant had to pay $120 million fine and is permanently banned from seeking to participate in federal student loan servicing activities.
▶ 4:30:13The company is also forbidden from directly servicing or acquiring most loans under the federal family education loan program. These bans largely removed Navian from a market where it among other illegal action steered numerous student loan borrowers into costly repayment options. Unfortunately, Republicans are trying to undermine the CFPB's ability to hold bad actors accountable like Navian and to protect student borrowers.
▶ 4:30:43This amendment would ensure that they can at least continue to do so. I support this amendment and I yield back the balance of my time. Gentleman yields back. Anybody seek recognition? Hearing no further debate. Uh the vote is now on the uh gentleoman from Oregon's amendment. All those in favor please say I. I. All those opposed say nay. Nay.
▶ 4:31:12In the opinion of the chair the naysay have it and the amendment is not agreed to. Gentlemen gentleoman from Oregon. May I have a recorded vote please? Gentlemen is at requested a recorded vote. All those in favor please raise your hand. Sufficient number having raised their hand. Recorded vote is so ordered. Pursuant to subsection C5 of rule rule three of the committee rules, further proceedings are postponed. We'll move to the next amendment. Mr. Chair, who seeks recognition? I do. The gentleman from Oregon. Mr. Chair, I have an amendment at the desk.
▶ 4:31:42We'll pause while it's distributed. Thank you. The point of Gentleman from Georgia preserves a point of order.
▶ 4:32:13Thank you.
▶ 4:32:57Yes. Clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Miss Binham of Oregon designated as G05. This is her second amendment. Without objection, this amendment will be considered read. I now turn to the gentleoman from Oregon to describe her amendment. Thank you, Mr. Chair. Mr. Chair, let me tell you a story. Um, you'll hear me often talk about my son, Asa.
▶ 4:33:24He's he's 14 years old, and I've seen firsthand how the world is different for our kids today. So, when my son sits down to play a video game, you can imagine it's it's more than a game now. He's it's not just this world that he's um interacting in with his friends. It's actually a digital marketplace and he has the ability to spend real money on digital items.
▶ 4:33:49In fact, sometimes when I'm sitting here, I get notifications from Amazon that he's bought another PlayStation card without my permission. He has the ability to spend real money on digital items. And with just a few clicks, he can access virtual currencies and in-game purchases. sometimes without fully understanding the cost. We've heard stories of kids racking up charges or worse accounts getting hacked and parents being left with an unaffordable bill.
▶ 4:34:19So today, my amendment supports the CFPB's efforts to make sure consumer protections extend to these digital marketplaces. The CFPB has looked into these gaming marketplaces and found troubling signs of theft, scams, fraud, and even money laundering laundering targeting players who are frequently kids. In so many homes, mine included, video games play a big role in our kids' lives.
▶ 4:34:45And we need to ensure the same basic safeguards that apply in a store or a bank apply on these platforms, too. The CFPB has a rule that does exactly that. It would treat video game companies like payment companies when they hold consumers money for in-game purchases. In practice, this means gamers and their parents would gain the right to dispute unauthorized charges and get refunds if they're defrauded just as they would with a bank or credit card.
▶ 4:35:15So the question is, why wouldn't we do everything we can to make sure that the rules that protect consumers also protect our kids online? We should be standing up to the CFPB, not dismantling it, as it keeps pace with new technology and markets. My amendment makes sure families are protected in video game transactions and other emerging payment platforms. Thank you, and I urge the committee to adopt my amendment. Gentleoman yields back.
▶ 4:35:44Gentleman from Georgia, do you assist on your point of order? I withdraw. Gentleman withdraws his point of order. Who seeks recognition? Gentle woman from California, the ranking member is recognized. Thank you very much. This amendment would allow the Consumer Financial Protection Bureau to retain its current independent funding to implement interpretive guidance on how the Electronic Funds Transfers Act and other payment protections might apply to new and emerging digital payment mechanisms, including those offered
▶ 4:36:15through video games. I just found out that President Trump, uh, who's creating his own meme and who's creating his own company for stable coins, is continuing on with his ripoffs and his, uh, attempts to make more money for himself, is planning on launching his own video games that involves, what do you think? Cryptocurrency.
▶ 4:36:39On April 15, reports came out from several sources that this video game is supposed to resemble Monopoly. Players will travel around aboard and earn money for constructing buildings in a digital city. Sound familiar? I also found out that Bill Zanker, the person who helped to launch Trump memecoin and various NFTt collection, is behind the game.
▶ 4:37:05This marks another President Trump venture into the digital assets world. How much will he profit on this? Well, I'll answer that question. He'll profit as much as he and his family can rip off uh in his leadership on cryptocurrency and all that he's doing to ensure uh that he makes more and more money and rip off the least suspecting. Video games are no longer simply a pastime in American society. They serve as gathering spaces for young Americans.
▶ 4:37:35We need to take steps to protect young Americans who feel left out by traditional financial services platforms, especially when President Trump continues to profit off their interests while also ensuring that his business interests go unchecked by agency.
▶ 4:37:52This is just another example of what this president is capable of doing as he explore more and more ways to lead on cryptocurrency and uh to rip off any and everybody that he possibly can. And so what we have to be careful about is watching everything that he does with crypto. He has learned how to use executive orders and the president's office to do whatever it takes in order to enrich himself.
▶ 4:38:22He's a poor example of what a president uh who does not think first about the people that he's serving will do to make more money no matter what it takes. I could say a lot more, but I've got a lot more I'm going to say about him later on. I uh yield back the balance of my time. Gentlewoman yields back who seeks recognition. Seeing no further debate, the chair recognizes himself for to strike the last word.
▶ 4:38:50This amendment introduces policy matters that fall outside the scope of the committee print, which specifically focuses on budgetary implications for the agencies within our committee jurisdiction. I urge my colleagues to vote against this amendment and maintain our focus on strengthening the nation's fiscal standing in today's work. I yield back the balance of my time. If there's no further debate, the question is now on the gentleoman from Oregon's amendment. All those in favor, please say I. I.
▶ 4:39:19All those opposed, please say nay. Nay. With the opinion of the chair, the naysay have it. The nays have amendment is not adopted. Mr. Chair, I ask for a recorded vote. The gentleoman asked for a recorded vote. All those in favor, please raise your hands. Sufficient number having raised their hands, a recorded vote is so ordered. Pursuant to subsection C5 of rule three of the committee rules, action is postponed. We'll now move to the next amendment. Who seeks recognition? Mr. Chair, I have an amendment at the desk.
▶ 4:39:48The gentleoman from Oregon is recognized for an amendment. We'll pause while the clerk Mr. Chairman, I reserve a point of order. Gentleoman from Missouri reserves a point of order.
▶ 4:41:01The clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Miss Binham of Oregon designated as G09. This is her third amendment. Without objection, this amendment will be considered as read. And I now turn to the gentleoman from Oregon to describe her amendment. You have five minutes. Thank you, Mr. Chair. One of my goals as member of this committee is to work on legislation that makes consumers better off.
▶ 4:41:29And that's what I believe we came here to do. Right. So, cracking down on outrageous overdraft fees to reigning in predatory lending, the CFPB's work keeps more of our constituents hard-earned money where it belongs, which is with them. We've heard the argument that deregulation will lower costs for consumers. But time and time again, those savings never seem to trickle down to our families and small businesses.
▶ 4:41:59Instead, what we get is a wild west of junk fees and fine print paragraphs that line corporate pockets while nickel and dimming our families. So, to be clear, my amendment seeks to set a pretty reasonable condition before we try to roll back the CFPB, we should have proof that doing so will actually benefit consumers. I'm an engineer by training, so I'm all about the data.
▶ 4:42:28We shouldn't be making willy-nilly decisions that might work. We need to be sure. The truth is the CFPB has actively been reducing financial fees and charges that burden ordinary Americans. In fact, a recent rule finalized by the CFPB capped credit card late fees at $8 instead of 30. That would have been real money back in people's pockets, returning $220 to the average family facing late fees.
▶ 4:42:58But your colleagues, my my colleagues, House Republicans, struck down that rule and raised costs. If there truly is a plan to eliminate the CFPB that won't hurt consumers wallets, I'd like to see the proof. Otherwise, we'd be dismantling an agency that has been cutting costs for American families, and I can't get behind that.
▶ 4:43:22Unless opponents of the CFPB can guarantee that undoing its protections will actually lower costs, we should be holding the line. Let's stop with the false promises, stick to the facts, and have the backs of our constituents, which is what we came here to do. Thank you, Mr. Chair, and I urge the committee to adopt my amendment. Gentleoman yields back. Does the gentleoman from Missouri insist on her point of order? Um, I do not, Mr. Chairman. Gentleoman withdraws a point of order.
▶ 4:43:51Who seeks recognition on the Williams amendment? Gentleoman from Missouri is recognized to strike the last word. Uh, thank you, Mr. Chairman. Uh, this amendment is is is not, Mr. Chairman, about saving the taxpayers money, which is why we're here today. It's about enshrining the same failed progressive policies that the president is working. so hard to reverse.
▶ 4:44:14This amendment brings us backward and is counterproductive to reducing direct spending in our jurisdiction. I urge all my colleagues to vote no on this amendment and I yield back. Mr. Chairman, the gentleoman yields back. Who seeks recognition? Ranking member, the gentleoman from California recognized to strike the last word. Uh thank you very much.
▶ 4:44:35U this amendment would ensure that Trump administration efforts to dismantle the CFPB would not take effect unless and until the Department of Treasury can certify that fees and other financing costs will be reduced for every consumer financial product. I probably agree with everyone that that will never happen. Uh these fees sometimes referred to as junk fees are excessive and undisclosed fees. For example, overdraft fees which committee Republicans don't want to limit. committee.
▶ 4:45:04Republicans are fine with people having to pay excessive overdraft fees when they already don't have money in the bank. All right. This uh this amendment uh would would absolutely um describe a situation under which um they certainly could not be able to dismantle.
▶ 4:45:22But I want to just say even if they were able even if they were able to do this, I would not uh support under any conditions the uh uh Consumer Financial Protection Bureau uh could be uh dismantled. Um I just want to tell you and remind everyone that the Consumer Financial Protection Bureau is very special and very important and we worked very hard under the DoddFrank reforms.
▶ 4:45:52uh to create uh the Consumer Financial Protection Bureau uh working with Senator Warren and others who understood uh that consumers had nowhere to go uh nowhere to complain prior to the development of this initiative. And so we've had to work very hard to protect it. Uh over the years, the Republicans have tried everything they could possibly do uh to destroy the Consumer Financial Protection Bureau all the way up to the Supreme Court.
▶ 4:46:21We have beat him uh every time. And so I think it is very important for everybody to understand uh that this very special consumer financial protection bureau is protected uh in terms of its funding uh because they get their funding directly from the uh Federal Reserve.
▶ 4:46:41I want you to know uh that the uh consumers and advocates around this country really do understand the importance of the Consumer Financial Protection Bureau. And so I'm thankful for these amendments and what everybody is doing to send a message uh out uh to the Republicans and uh and to the president of the United States of America. You may rip us off with crypto. Uh you may create your own uh memecoin.
▶ 4:47:11Uh you may create your own stable uh coin um uh operation and business, but you're never going to get the Consumer Financial Protection Bureau. We are so committed and dedicated to the proposition uh that the people of this country deserve uh to be protected from the fosters and the ripoff artists and all of those who would absolutely use every trick in the book uh to rip people off from their money. And guess what?
▶ 4:47:40They go to the most vulnerable neighborhoods. They go to the neighborhoods uh where the people have the le lease. They go to the neighborhoods where they know that people don't have lawyers. uh to defend them. They go to neighborhoods and and and uh counties and places in this country where they think they can get away easier uh than going to some of the more welloff neighborhoods who can afford uh to be in a fight and to hire their lawyers, etc., etc.
▶ 4:48:10And so if the Republicans are coming up with more efforts to try to get at the Consumer Financial Protection Bureau, we want you to know we're going to fight you to the last inch. That we're not going to support. Uh we're not going to turn our heads and we are going to tie it right to the president where it belongs with his cryptocurrency and everything else that he's trying to do to enrich himself. I yield back. The gentleoman yields back.
▶ 4:48:38Who seeks If there's no further debate, the question now occurs on the amendment offered by the gentleoman from Oregon. All those in favor of the amendment shall signify by saying I. I. Are any eyes. All those opposed say nay. No. In the opinion chair, the naysay have it. The naysay have the amendment is not adopted. Mr. Chair, I ask for a recorded vote. Uh the gentleoman asked for a recorded vote. Those in favor of recorded vote, please raise your hands. A sufficient number having raised their hand. Recorded votes ordered.
▶ 4:49:08Pursuant to subsection C5 rule three, action on this vote is postponed. We now move to the next amendment. Who seeks Does the gentleoman from California have an amendment at the desk? Yes. Um I have an amendment at the desk. No, no, we don't have you have this I'm sorry.
▶ 4:49:38We do not have an amendment at the desk, Mr. Chair. Um, I need to advise you that a quorum is not present. And I'd make a point of order that a quorum is not present. The gentleoman uh uh has a point of order that a quorum is present. The chair shall count for a Clerk will open the vote. Okay. We don't Sorry. Sorry. Hold on.
▶ 4:50:17The quorum is not present and so the court may open the vote. I request a um I request a roll call. That is I mean, I'm
▶ 4:54:35Yeah, I know. 18 members being present. A quorum is present. The committee shall resume it business. Is there further discussion?
▶ 4:54:56Is there further amendment to the amendment of the nature of Is there further discussion?
▶ 4:55:27There's an amendment at the desk, Miss Presley. We'll wait for it to be Let's keep this thing fire. That's our equival of course. All right. My Has it been distributed? We're waiting for it being distributed. Thank you.
▶ 4:55:59It took out her story for the second one. I know. All right. Right here. Yeah.
▶ 4:56:17This is where you like reading the quotes and the stories about clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Miss Presley of Massachusetts designated as G07. This is her first amendment. Without objection, the amendment will be considered as read and the gentleoman, Miss Presley, is recognized to describe her amendment. I'm sorry.
▶ 4:56:47Uh, Mr. Chairman, pause. Mr. Lucas, could I reserve a point of order, please? Point of order is reserved. Now, let me turn to the gentleoman, the author of the amendment, Miss Presley, for five Thank you. My amendment will ensure the CFPB remains fully funded so that it continue returning billions of dollars to consumers by charging riskbased assessments to the largest banks and non-bank financial companies including big tech payment providers and payday lenders.
▶ 4:57:13This funding mechanism is similar to how other financial industry watchdog agencies are funded such as the FDIC, the OC, and the Federal Reserve. According to a poll from just one month ago, 67% of Americans favor the CFPB, including 60% of Republicans. It's clear the CFPB is incredibly popular, and for good reason. My colleagues across the aisle think gutting the CFPB to serve Trump and Elon's agenda and pass tax cuts for billionaires is more worthwhile.
▶ 4:57:44The billions of dollars the CFPB has returned to consumers isn't just a statistic, it's a reality. Take Jonathan Booth from Colorado. He struggled to get a wrongly charged late fee from his credit card company resolved until the CFPB stepped in. Narit from Cambridge, Massachusetts was in a dispute with a contractor who damaged her home. She wasn't able to engage the contractor or Vinmo until the CFPB stepped in. Only then did she receive the money to cover the damage. Or Barbara from Arizona.
▶ 4:58:11She was harassed by debt collectors wrongfully claiming unpaid dental bills from her 95year-old father. She reached out to attorneys generals in two states, but it was only after she contacted the CFPB that the debt collectors stopped harassing her and the case was closed. This is just a snapshot of America, of all of our constituents who benefit in one way or another from the CFPB. Who stand to lose if this agency is gutted as Republicans want?
▶ 4:58:38Who stands to suffer at the hands of big bank and predatory lenders if this bill is passed today? In addition to these individuals and countless others, 349 consumer, civil rights, labor, legal services, and community organizations and academics wrote to Congress just yesterday demanding action to restore a strong and independent CFPB.
▶ 4:59:00In their words, quote, "The CFPB has worked to support a healthy, sustainable housing market, improve credit reports, crack down on drunk fees, reduce the burdens of medical and student debt, fight lending discrimination, and to promote safe banking practices and banking competition." I also want to highlight the words of the Student Borrower Protection C Center's deputy executive director who said, quote, "From student loan borrowers to seniors, service members, and military families, the CFPB has been the first line of
▶ 4:59:30defense for everyday Americans targeted by predatory financial institutions. Last year alone, every state and territory saw a surge in complaints filed with the agency, a testament to its critical and growing role as financial defender for everyday Americans. My amendment is important because keeping the CFPB funded is important. I urge my colleagues to support my common sense amendment fund the only agency whose sole responsibility is to protect consumers.
▶ 5:00:02The gentleoman yields back. Does the gentleman from Oklahoma insist on his point of order? I no longer do. I withdraw. I withdraw. Mr. Chairman, the gentleman withdraws his point of order. Who seeks recognition? The gentleman from Kentucky is recognized to strike the last word. Move to strike the last word. Thank you, Mr. Chairman. As much as I would uh as much as I'm tempted to address the policy issues here, that's not what this is about.
▶ 5:00:26This amendment is not about saving taxpayers money, it's about enshrining the same failed progressive policies that the president is working so hard to reverse. This amendment brings us backward and is counterproductive to reducing direct spending in our jurisdiction. That's why I urge all my colleagues to vote no on this amendment. And I yield back. Gentleman yields back. Who's who seeks recognition? Hearing no further debate, the question is now on the gentleoman, Miss Presley's amendment. All those in favor, please say I.
▶ 5:00:59All those opposed see please say nay. Nay. In the opinion of the chair, the naysay have it and the amendment is not adopted. Gentleoman from Miss Presley. Gentlewoman asked for a recorded vote. All those in favor of recorded vote, please raise your hand. A sufficient number having raised their hand. A recorded vote is so ordered. Pursuant to subsection C5, rule three of the committee rules, further proceedings on this amendment are postponed. We'll now turn to further amendment.
▶ 5:01:29Who seeks recognition? Is there any anyone seek further recognition on the bill? I have an amendment at the desk. yes. We'll pause for that to be distributed. Thank you.
▶ 5:02:12Literally he just reprinted everything. No one If the clerk could report the amendment, please.
▶ 5:02:36An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Presley of Massachusetts designated as G08. This is her second amendment. Mr. Chair, gentleman from Oklahoma. I'd like to reserve a point of order, Mr. Chairman. A point of order is uh reserved. I now turn to the gentleoman from Massachusetts for five minutes to describe her amendment. Thank you. Thank you, Mr. Chair.
▶ 5:03:03Republicans have decided that slashing the Consumer Financial Protection Bureau budget by 70% is in their best interest. It's certainly not in the best interest of their constituents, but that's not who they're doing it for. They're doing this for every company that wants a free pass to violate consumer protection laws. Whether it's a bank, a debt collector, a credit repair firm, a mortgage lender, or a fintech, it doesn't matter.
▶ 5:03:25Because without the CFPB functioning and funded as it should be, these companies will essentially have a free pass to abuse and prey on consumers. Since 2010, the CFPB has brought over 300 enforcement actions against companies for violating these laws. They are the only agency representing the consumer, and they have proven their importance time and time again.
▶ 5:03:48They've gone after companies that did deceptive marketing, charged illegal fees, discriminated against consumers, opened accounts without authorization, and had failures in data accuracy and dispute processes. I don't understand why my colleagues across the aisle are in favor of these violations, but I certainly would appreciate an explanation. The CFPB has defended consumers time after time.
▶ 5:04:13Just in the last few years, the CFPB found Lexington Law and Credit Repair.com guilty of illegally charging upfront fees and engaging in deceptive baitandswitch advertising for credit repair services. The CFPB penalized US Bank $37.5 million for opening accounts and credit lines without customer authorization.
▶ 5:04:36The CFPB ordered a regional bank headquartered in Virginia to pay $5 million in redress and $1.2 million in penalty for f failing to provide adequate notice of overdraft services. The CFPB held land development and mortgage companies accountable for targeting Hispanic consumers with predatory loans and failing to provide required disclosures.
▶ 5:05:01These are just a few examples that illustrate the breadth and the depth of illegal conduct investigated by the CFPB. Currently, the CFPB is funded through transfers from the Federal Reserve that are capped annually. But Republicans want to defund the CFPB to pay for tax breaks for billionaires. That doesn't sound like a fair trade, but my amendment provides a way to keep the CFPB fully funded even with the disastrous Republican cuts.
▶ 5:05:28My amendment would change the CFPB's funding structure so that any company found to have violated a consumer financial protection law since 2010, including some of the examples that I enumerated earlier, would pay annually to fund the CFPB through annual assessment.
▶ 5:05:46These bad actors would be responsible for funding the very agency that held them accountable, creating a direct financial consequence for them and incentivizing them to stop breaking consumer protection laws. This is a fair way to fund the CFPB to help consumers keep them safe from companies that think they can abuse and prey on consumers without any consequences.
▶ 5:06:13I urge my colleagues to support this common sense amendment and I yield the balance of my time. Gentlewoman yields back. Is there anyone seeking recognition on this amendment? If there's no further debate, the question now occurs on amendment by the gentleoman from Massachusetts. All those in favor, please say I. Any opposed, please say nay. Nay.
▶ 5:06:42All in the opinion of the chair, the nays have it. The ns amendment is not vote. A gentleman from Massachusetts requests a recorded vote. Gentlemen request a recorded vote. Record a vote. Uh if you support that, raise your hands. A sufficient number having raised their hands. A recorded vote is so ordered. Pursuant to subsection C5 of rule three of the committee rules, further proceedings are postponed. We'll now move to the next amendment. Who seeks recognition? Gentleman gentleoman from Texas.
▶ 5:07:12I move to strike the last word. Does the gentleoman have an amendment? Yes, sir. I have an amendment. We'll pause while that's amended. Uh distributed. I'm sorry. I apolog
▶ 5:08:17clerk. will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Garcia of Texas designated as G06. This is her first The without objection, this amendment will be considered as read. Uh gentle from Oklahoma. Mr. Chairman, I would like to reserve a point of order, please. Uh gentleman reserves a point of order. Chair recognizes the gentleoman from Texas, Miss Garcia, for five minutes. Thank you, Mr. Chairman.
▶ 5:08:46My amendment would make sure that this bill cannot take effect until the general account government accountability office certifies that the provisions in this bill will not will not prevent older consumers, our seniors who are victims of financial fraud and abuse can from receiving remediation and help from the Consumer Financial Protection Bureau. Let me set the stage. You all have heard it at your town hall meetings if you had some recently.
▶ 5:09:16We have all gotten these annoying spam calls and texts. The ones that don't seem to leave you alone, even if you try to ignore them. Now, most of us better know better than to pay or buy whatever they're selling. But imagine our seniors. They get a call pretending to offer technical support for these new digital services and products. It sounds like the product makes sense.
▶ 5:09:43After all, it would protect you from viruses, which your kids always warn you about. Our seniors may not know that these sellers are actually scammers trying to trick them into purchasing expensive and unnecessary products. With the increase in volume and speed of digital transactions, older Americans, our seniors are at risk now more than ever.
▶ 5:10:07The Consumer Financial Protection Bureau, since its creation, has worked to help protect our seniors from financial harm and abuse. They have received over a 100,000 complaints from 62 from people who are 62 years or older. They have worked across various levels of government to coordinate efforts and maximize our outreach to our seniors.
▶ 5:10:31In fact, many of my own constituents learned about the CFPB for the first time during a visit in March of 2024. They learned about how they can protect millions of Medicare recipients from unlawful medical bills and how to identify unsectioned debt collectors. They even given advice on how to check for junk fees in their bure bureau plans.
▶ 5:10:55In addition to medical debt scams, the CFPB has protected older Americans from losing money on zombie mortgages, nursing home debt collection, and other forms of financial exploitation. And some of this exploitation actually are crimes and the FBI reports that they have they have worked on many many cases. Um, I have for uh inclusion in the record and ask for unanimous consent a report from the FBI. Elder fraud in focus.
▶ 5:11:26There's been a 14% increase in internet crime against our seniors. I asked for unanimous consent for that to be under the record. Without objection. Thank you. So, when I was a geriatric social worker back in the day, I saw firsthand the abuse our seniors face as consumers. I hear from seniors every time I visit or whenever I do a town hall. They know that this is really happening and they need help.
▶ 5:11:53Some reach level of crime and can make we can make referrals to the FBI, but some are consumer transactions and the FBI for consumers is the CFPB. It directly puts money back into their pockets and they're doing that to seniors across America. Protecting our seniors is critical. We cannot wait for a future time. We must include include this in this bill to make sure that they remain protected.
▶ 5:12:20This amendment is a call to ensure that the CFPB can continue its work in protecting our seniors. It has been said more than once during this hearing, Mr. Chairman, that you know, spending money has consequences. Well, voting against our seniors has consequences. Fraud and abuse against our seniors has consequences. All the work that we do has consequences.
▶ 5:12:44But the one thing we can do is support our seniors and make sure that the CFPB is there to protect them from financial scams through the internet, through the phone, and in writing. With that, Mr. Chairman, I yield back. The gentleoman yields back. Who seeks recognition? We're still debating Miss Garcia's amendment. I was eager. Apologies. If there's no further debate, the question now occurs on the amendment offered by Miss Garcia of Texas.
▶ 5:13:13All those in favor, please say I. I. I. All those opposed against, please say nay. Does the Does the gentleman from Oklahoma withdraw his point of work? Enthusiastically, Mr. Chair. Yes. In the opinion of the chair, the nays have it. The nays have amendment is not adopted. Speak on it. We'll now move to further amendment. Who seeks Mr.
▶ 5:13:37Chair, I have an amendment at the Roger that. The gentle woman from Massachusetts has an amendment at the desk. We'll pause while it's
▶ 5:14:08This is
▶ 5:16:40The clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Presley of Massachusetts designated as G18. This is her third amendment. Without objection, the amendment will be considered read. Gentleman from Oklahoma. Mr. Chairman, I reserve a point of order. Gentleman reserves a point of order. We'll now turn to the gentleoman from Massachusetts to describe her amendment. Thank you, Mr. Chair.
▶ 5:17:09Doge has made sweeping cuts to agencies responsible for oversight of our financial system. This raises the risk to financial stability, consumer protection, and the broader economy. The FDIC has been significantly hampered by Doge. Let's look at the numbers. The FDI has reduced staffing by about 10% since January. An additional 450 employees and now are part of the deferred resignation program.
▶ 5:17:35Then Doge dismissed 160 probationary officers following that. And on top of those cuts, nearly 17% of remaining staff are eligible for retirement. This will clearly reduce the staff capacity to carry out the FDI's mission of protecting our money in banks. On the flip side, it takes three years of training for new commissioners to be qualified to lead bank examinations.
▶ 5:18:01It's far more difficult and timeconuming to train new commissioners, which means Doge has severely weakened the FDIC and worsened a long-term staffing issue. This is not just concerning, it's destabilizing. This means we have fewer examiners to oversee the health of the 4,500 banks in our country. This means we don't have certainty the mandatory safety and soundness examinations of these banks will be completed on time.
▶ 5:18:30And let's be clear, these banks are extremely important in ensuring public confidence in our banking system. The inspector general for the FDI was worried about insufficient staffing at the FDIC in December before the to staff. Imagine the concerns we should have now.
▶ 5:18:47With banks sitting on huge unrealized losses, which is the same issue that sparked the fall of SVB, First Republic and Signature Bank, there is a real concern that FDIC will not only be able uh will not be able to do its job, which includes taking over a failed bank's operations and assets if necessary.
▶ 5:19:08The reduction in staff at the FDIC increases the risk of undetected problems within banks and could lead to delayed responses to emerging banking crisis. Doge hasn't just weakened the FDIC, they've also targeted the CFPB, which means less protection for consumers in financial markets. In America, there is now a greater risk of fraud, predatory practices, and consumer harm going unchecked.
▶ 5:19:39Additionally, small businesses rely on stable banking relationships and fair access to credit, which means they could be vulnerable if financial instability rises. So, let's be honest, Doge cuts haven't increased efficiency. They've done the exact opposite.
▶ 5:19:58According to nonpartisan nonpartisan analysis, Doge cuts could cost taxpayers $135 billion this fiscal year due to loss of productivity, paid leave, rehiring costs, and disruptions in federal services. They haven't saved taxpayer money. They've wasted it.
▶ 5:20:21And these costs don't even include potential losses from tax enforcement and the economic impact of a weakened financial oversight. DOA's approach clearly shows a failure to plan and consider the consequences of their actions. It's Congress's role to conduct oversight and that's what my amendment does.
▶ 5:20:40My amendment will conduct a study through the Financial Stability Oversight Council and Office of Financial Research to evaluate the damage and risk posed to our financial systems by Doge cuts as well as the concerning impacts on consumer and investor protection. And unlike Doge, my amendment will assess systemic risks, not just tally up fake savings.
▶ 5:21:04DOA's actions may seem harmless to my colleagues across the aisle, but their sweeping and ill-thoughtout cuts have realworld consequences for real people, particularly for our most vulnerable, along with the stability of the financial system. I urge my colleagues to support what is a common sense amendment and Congress's role, oversight. And I yield back. The gentleoman yields back.
▶ 5:21:32Is there does the gentleman from Oklahoma insist on his point of order? I wish to withdraw my point of order, Mr. Chairman. He generously withdraws his point of order. Is there any other comment debate? The general, the ranking member uh from California is recognized to strike the last word. Uh thank you very much. Um I thank Representative Presley uh for offering this sensible amendment. Elon Musk's Doge minions have been out of control.
▶ 5:22:02They have fired the people who handle our nuclear arsenal. They have fired experts working on the bird flu outbreak that made eggs very expensive. And they've gone after our financial regulators, including the Consumer Financial Protection Bureau and the Federal Deposit Insurance Corporation.
▶ 5:22:21It is worth noting that while the FDIC has attempted to fire some of its examiners, we had inspectors general pointing out that they need to hire more examiners after the regional bank failures last year. And through this bill, Republicans seek to slash the budget for our financial stability agencies by 90%.
▶ 5:22:44There's a consequence to all of this and the very least we should get is an analysis by our financial agencies on what these doge um workforce cuts means for our financial stability. I urge members to support this amendment and I yield back. Gentlemen yields back. Who seeks recognition? Seeing no further debate, chair recognizes himself uh for comment.
▶ 5:23:12Uh this amendment in my view is not relevant to the committee's print that the committee is considering today. The committee print of this reconciliation measure is limited to budgetary matters that will save taxpayers over a billion dollars. I urge my colleagues not to be distracted by this amendment and to vote no. I yield back the balance of my time. Is there further debate? Hearing none, the question now occurs on the uh amendment from Massachusetts. All those in favor, please say I. I. All those opposed, please say nay.
▶ 5:23:42Nay. In the opinion of the chair, the nays have it. The nays have it. The amendment is not adopted. Gentlewoman from Massachusetts, do you request a recorded Gentlewoman, do you request a recorded vote? Yes, I request a recorded vote. Recorded vote is requested. All those in favor of recorded vote, raise your hand. Sufficient number having raised their hands. Recorded vote is so ordered. Pursuant to subsection C5 of rule three of committee rules, further proceedings on this vote are postponed. Is there turn to another amendment? Who seeks recognition? I have an amendment at the desk. Mr.
▶ 5:24:12Chair, the gentleoman from Massachusetts has an amendment at the desk. We'll pause for it to be
▶ 5:25:33Clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Presley of Massachusetts designated as G19. This is her fourth amendment. Without objection, the amendment will be considered as read. Does the gentleman from Oklahoma reserve a point of order? I wish to reserve a point of order, Mr. Chairman. It is done. We now turn to the gentleoman from Massachusetts to describe her amendment. You have five minutes. Thank you.
▶ 5:26:03Doge established by the Trump administration and run by Elon Musk has been granted unprecedented access to sensitive government databases. This includes confidential personal and financial records regarding social security, student loans, government HR files, and even sensitive payment systems at Treasury. Doge employees who were given access to some of the most sensitive data our agencies possess did so with no training. They did so with no oversight.
▶ 5:26:31Even Trump's political appointees at agencies across the executive branch have admitted they cannot track when or how Doge staff access sensitive data. This is not something my colleagues across the aisle can ignore or turn away from. Doge is brazenly ignoring privacy laws and personally identifiable information has been improperly shared with individuals outside Doge. This is not legal for Republicans to talk so much about law and order.
▶ 5:26:59They're pretty quiet when Elon Musk daily breaks the law. Further, there have been documented incidents where Doge staff receive mistaken permissions, including readright access to Treasury payment systems. There is no justification for and reason why Doge needs unlimited access to social security records and other private information that millions of Americans have entrusted to their government.
▶ 5:27:25That is why I'm offering an amendment to evaluate the impact of Doge's actions. This amendment is critical because we need to shine a light on what sensitive data Doge has been given access to and how this agency has through their sheer incompetence undermined data privacy, cyber security, and financial stability.
▶ 5:27:47My amendment will task the Financial Stability Oversight Council and the Office of Financial Research to report these facts to Congress. This is necessary because Doge has largely moved in the shadows without oversight and we still don't know the extent to which sensitive data has been improperly accessed and what damage has already been done. Here's what we do know.
▶ 5:28:13We know that lack security and rapid onboarding of Doge staff have raised the risk that sensitive data could be leaked or hacked, exposing Americans to identity theft and fraud. We know that the release of confidential personnel data has been flagged as a significant breach that could endanger federal employees. And we know that we are at a greater risk of large-scale breaches. Just think about it.
▶ 5:28:40If we let Doge put all of the data across the executive branch in one system, North Korea, Russia, and others are just going to target that one system for hacking.
▶ 5:28:54We need my amendment to shed light on how DOA's ability to halt payments to access sensitive financial systems has undermine the integrity of our data privacy systems as well as financial stability and market competition.
▶ 5:29:12If Doge was truly about making the government more efficient and cutting waste, fraud, and abuse, we wouldn't be seeing a move fast and break things approach to the most sensitive and confidential personal data within our agencies. It's time to slow down and assess what Doge has broken. Millions of Americans on Social Security deserve to know.
▶ 5:29:41and my amendment is critical to ensuring we do just that. I urge my colleagues to support this common sense amendment and I yield. Gentlewoman yields. Is there further debate on the Presley amendment? And does the gentleman from Oklahoma reserve his continue to reserve his point of order? I wish to withdraw my reservation, Mr. Chairman. Gentleman withdraws his point of order. Further debate, ranking member, gentleoman from California to recognize for five minutes. Thank you, Mr. Mr.
▶ 5:30:11Chairman, I move to strike the last word. Gentlemen, it's right. I thank Representative Presley uh for offering this important amendment. This amendment would direct financial stability oversight council member agencies to monitor and assess the sensitive data uh that has been shared with Elon Musk's so-called Department of Government Efficiency or Doge and to share that information with Congress and the public.
▶ 5:30:39In the early days of this administration, Doge quickly gained access to sensitive payment systems administered by the Treasury Department's Bureau of Fiscal Service that handles trillions of dollars of payments sent from the government. Doge has also accessed critical databases and sensitive information held by the Consumer Financial Protection Bureau.
▶ 5:31:04Elon Musk could use the sensitive business data uh that CFPB has for its own financial benefit to learn more about other payment platforms uh that would comp compete uh with the new payment app Musk plans to launch. These illegal actions have led multiple judges to step in. A judge blocked uh the Trump's administration's unlawful payment freeze.
▶ 5:31:32Additionally, a United States District judge issued an emergency order temporarily restricting access to Treasury's payment and data systems which contains highly sensitive information, noting that there was a risk of irreparable harm with threats to our financial data uh privacy and cyber security on the rise. Now is not the time to cut off our oversight tools. I urge members to support this amendment and I yield back.
▶ 5:32:02The gentleoman yields back. Is there further debate? If there's no further debate, uh question now occurs on the amendment offered by the uh gentlewoman from Massachusetts. Does you've withdrawn your point of order right now? Yeah. The gentleoman from Massachusetts. All those in favor, please say I. I. I. All those opposed say nay. Nay. The nays have it. Amendment is not adopted. Recorded vote. The gentleoman asked for recorded vote.
▶ 5:32:31All those in favor of recorded vote, raise your hands. Sufficient number having raised their hands. The recorded vote is so ordered. Pursuant to subsection C5 of rule three of the committee rules, action on this vote are postponed. We now move to the next amendment. Who seeks recognition? The ranking member, Miss Waters. Thank you, Mr. Chairman. You have an amendment at the desk. Uh we'll pause while it's distributed.
▶ 5:33:07Does the gentleman from Oklahoma reserve a point of order in this opportunity? I seek to reserve a point of order, Mr. Chair. Good. The gentleman from Oklahoma has reserved a point of order.
▶ 5:34:18Clerk will report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Waters of California designated as L01. This is her fourth amendment. Without objection, the amendment will be considered as read and the gentleoman from California is recognized for five minutes to discuss her amendment. Thank you very much, Mr. Chairman. Thank you.
▶ 5:34:43As Republicans propose cuts to basic and necessary government programs, they are at the same time enabling Trump's exploitation of the office of the president to enrich himself and his billionaire buddies with crypto schemes.
▶ 5:34:59This amendment ensures that the financial stability oversight council can investigate the president and other government officials who are financially benefiting from their promotion of crypto products which will inevitably cause harm to the country's financial stability to shine a light on details of Trump's crypto conflicts of interest.
▶ 5:35:23I want to take some time now to read from a New York Times investigation that came out just yesterday. World Liberty Financial has eviscerated the boundary between private enterprise and government policy in ways without precedent in modern American history. The pitch from Zoney arrived on the encrypted messaging app Signal just days before Donald J. Trump's presidential inauguration.
▶ 5:35:51Z Money was Zachary Folkman, an entrepreneur who once ran a company called Date Hotter Girls and was now representing World Liberty Financial, the cryptocurrency firm that Mr. Trump and his sons had recently unveiled. Mr. Folkman was writing to a crypto startup in the Cayman Islands offering a partnership in which the firms would buy each other's digital coins.
▶ 5:36:20a deal that would bolster the startup's public profile. But there was a catch. The New York Times found for the privilege of associating with the Trumps, the startup would have to make in effect a secret multi-million dollar payment to world liberty. Everything we do gets a lot of exposure and cred credibility, Mr.
▶ 5:36:43The folkman wrote asserting that other business part partners had committed between 10 million and 30 million to world liberty. The Cayman startup rejected the offer as did several other firms that received a similar pitch from world liberty executive save. They considered the deal unethical, concluding that world liberty was essentially selling an endorsement and hiding the arrangement from the public.
▶ 5:37:11World Liberty's executives who have maintained that they did nothing improper were undeterred. They successfully pitched similar deals to other firms while also marketing their coin to buyers around the world. Re reaping more than 550 million in sales with a large cut earmarked for the president's family. Mr.
▶ 5:37:34Trump's return to the White House has opened lucrative new pathways for him to cash in on his power, whether through social media company or new overseas real estate deals. But none of the Trump family's other business endeavors pose conflicts of interest that compare to those that have emerged since the birth of World Liberty.
▶ 5:37:59The firm, largely owned by a Trump family corporate entity, has erased centuries of old presidential norms, eviscerating the boundary between private enterprise and government policy in a manner without precedent in modern American history. Mr. Trump is not only a major crypto dealer, he is also the industry's top policy maker. So far, in his second term, Mr.
▶ 5:38:25Trump has leveraged his presidential powers in ways that has benefited the industry and in some cases his own company. Even though he has spent years deriding crypto as a haven for drug dealers and scammers, he has filled his administration with sympathizers to the crypto cause, including by appointing a former adviser to industry players as chairman of the Securities and Exchange Commission.
▶ 5:38:49In addition, the Justice Department recently disbanded a crypto crimes task force, continuing a broader unwinding of batten area scrutiny of the industry. A Times examination of World Liberty's rapid ascent from fledging startup to international force and Mr. Trump's conversion from crypto skeptic to industry cheerleader highlights the range of conflicts of interest trailing the company. World Liberty has directly benefited from Mr.
▶ 5:39:19Trump's official actions, such as his announcement of a federal crypto stockpile that would include a digital currency the firm has invested in. The president's announcement caused a temporary jump in the value of World Liberty's holdings. And so, Mr. Chairman and members, I read to you what is being now investigated and I will continue as we go on in this committee. I yield back. Gentlewoman yields back. Who seeks recognition?
▶ 5:39:50The gentleman does the gentleman from Oklahoma insist on his point of order. I withdraw my point of order. Gentleman withdraws his point of order. The gentleman from Wisconsin's recognized to strike the last word. Uh Mr. Mr. Chairman, the purpose of the committee prints is to address the budgetary matters for agencies within our jurisdiction. Uh this amendment introduces unrelated policy matters. Uh to maintain our focus on strengthening the nation's financial stability, I might urge my colleagues to vote no.
▶ 5:40:20Gentleman from Wisconsin uh yields back. Gentleoman from Massachusetts as seek recognition. Gentleoman's recognized. Strike the last word. Uh, I yield to ranking member Waters. Uh, thank you very much, Mr. President. Uh, let me continue reading this article.
▶ 5:40:38World Liberty has sold this cryptocurrency to investors abroad, including in Israel and Hong Kong, according to interviews and data uh, obtained by the Times, establishing a new avenue for foreign business to try to curry favor with Mr. Trump. Several investors in World Liberty's coin managed firms that the federal government accused of wrongdoing. They include an executive whose fraud case was suspended after he invested millions of dollars in World Liberty.
▶ 5:41:09Other investors and business partners, some of whom haven't been publicly identified before, are looking to expand ways that they will require the Trump administration's approval. World Liberty proposed swapping cryptocurrency with at least five startups and often used the Trump name to solicit steep payments as part of the deals. Even in an industry with a disreputable history, the deals raise alarm among veteran executives.
▶ 5:41:37It's a black spot on our industry, said Andre Kanji, a founder of Sonic Labs, a crypto firm that turned down World Liberty's pitch. Anyone who accept it would obviously think they're going to make money because it's the officially endorsed Trump project. A spokesman for World Liberty, David Washman, disputed that any of the company's deals constituted a one-sided payment, one-sided payment for services rendered.
▶ 5:42:06But he acknowledged that the company has engaged in mutual investment deals and said that its deal making had resulted in thoughtful strategic exchanges between parties who stand to mutually benefit quote unquote. Mr. Watchman also said it would be false, absurd, and dangerous to suggest that investments or partnerships with World Liberty Financial are conducted as some sort of political quidd proquo.
▶ 5:42:35Never has an investor or partner requested any political favoritism, he said. Nor would we ever entertain such a possibility, quote unquote. Still, the company's dealmaking benefits the president's family. A Trump business entity owned 60% of World Liberty according to the company's website, and is entitled to 75% of certain revenue from coin sales, which could be converted into cash.
▶ 5:43:02It's one of the most successful things we've ever done. Eric Trump, the president's son, who runs the family business, said in an interview this month at Trump Doral uh Doral Golf Course in Florida. He and his older brother, Donald Trump Jr., are actively involved in World Liberty, though they rely on three partners to oversee the daily operation. Two of them, Mr. Folkman and Chase Herrow have mixed track record in crypto.
▶ 5:43:33The other is Zach Wittoff, the son of Mr. Trump's envoy to the Middle East, Steve Wittoff, who is also a liberty world liberty founder. In recent days, Zach Wito, Mr. Folkman, and Mr. Herold were in Pakistan meeting with the country's prime minister Muhammad Shabbaz Shariff and other top government officials to discuss world liberty.
▶ 5:43:57The trip complete with limousines, a dance performance, police escorts, seemingly blended the president's business interest with the trappings of a state business. Mr. Watchman said no US government officials were involved in the meetings. President Trump has noted that conflict of interest laws do not apply to him and that he has broad immunity immunity for official actions he takes as president.
▶ 5:44:22In a statement, a spokeswoman for President Trump noted that his assets are in a trust managed by his children and that as a result there are no conflicts of interest. This trust still benefits President Trump directly. World Liberty supporters are unbothered by questions about conflict.
▶ 5:44:41And so I share this information with you uh because I do not wish members uh to not be able to understand what is going on with the president of the United States, his ownership of crypto and the fact that he oversees the very regulators involved with crypto. uh and he's able to direct them in what they should and should not do and excuse any crimes that they are committing.
▶ 5:45:11With that, I'll yield back um the rest of my time until I continue with this reading at the next opportunity. The gentleoman yields back who seeks recognition. Green from Texas. Yes, Miss Garcia. doesn't matter. Mr. Garcia of Texas, you're recognized. Strike last word. Thank you, Mr. Chairman.
▶ 5:45:39And I'm so happy that the ranking member is sharing the words that she is. And I think everyone should sit and listen. Uh and um give her the courtesy of making her remarks. And with that, I yield uh the remainder of my time to the ranking member. Thank you very much, Miss Garcia. Trump wants to make a lot of money in crypto.
▶ 5:46:02Constantine Kousnesv, a Russian citizen living in Miami whose Gibralarbased firm brought $1 million of World Liberty's coins, said in an interview, and I quote, "We can join in this wave," quote unquote. As a businessman who made his name in the textile world of real estate, Donald Trump never aspired to build a digital coin empire. Indeed, at the end of his first term, remember, Mr.
▶ 5:46:31Trump turned to social media to express disdain for cryptocurrency. They are not money, quote, he warned, their value is highly volatile and based on thin air, quote unquote, by last year, his views had began to shift. His older sons have become enthusiastic crypto proponents after the January 6, 2021 attack on all of us in the capital effectively exiled the family business from the mainstream financial system.
▶ 5:47:01Quote, "We built and sold and held real estate held real estate, real real estate forever. And for a long period of time, I had access to everyone in the world." Donald Trump explained in a live video appearance at a crypto conference in Washington last month. Quote unquote quote. All of a sudden that became really difficult and I sort of realized very quickly just how much discrimination there is in the ordinary financial markets quote unquote.
▶ 5:47:32The change of heart also coincide with an influx of millions of dollars in campaign contributions from the crypto industry into the Trump re-election effort. Under the Biden administration, the industry had faced nearly 100 enforcement actions by the SEC and crypto executives wanted a leader to champion their interest in Washington. During his campaign stumps, Mr. Trump's qualms about crypto appeared to completely vanish.
▶ 5:48:01At a Bitcoin conference in July, he vowed to turn the United States into the crypto capital of the planet, quote unquote. Two months later, Mr. Trump completed his conversion, announcing that he and his sons would enter the crypto marketplace with a new venture called World Liberty Financial. Mr. Trump delivered the news in a live stream in his Mark Alago estate in Florida where he had gathered with Eric and Donald Jr.
▶ 5:48:30along with Mr. Hero and Mr. Folkman. Crypto is one of those things we have to do. Quote unquote Mr. Trump said quote whether we like it or not I have to do it. Mr. Hero and Mr. Folkman were unusual choices to partner uh with the president. Mr.
▶ 5:48:47spokman who had short well described in a certain way had short curly and tattoos ran a company in his 20th to to tutoring forlorn men on how to pick up women in numerous podcast appearances Mr. Hero has recounted his life's uh redemption arc describing a wild youth in which he was charged with marijuana possession and spent a couple of weeks in a Wisconsin jail.
▶ 5:49:15The two men had worked together for years, selling everything from cologne cleanses to get rich quick advice before pivoting to crypto with uneven results. In 2022, Mr. urged a room full of crypto enthusiasts to invest in the currency terror USD, calling it quote one of the coolest assets in history. The coin imploded.
▶ 5:49:45The coin The coin imploded a month later, erasing billions of dollars in wealth. Mr. Hero's most recent venture with Mr. Folksman was a crypto platform called Do Finance, which was hacked in July leading to the theft of $2 million. It's not clear exactly how the pair earned the Trump's trust, but Steve Whittle said last year that he met them through his son, then introduced them to the family.
▶ 5:50:14With that, I yield back the balance of my time until I have an opportunity to continue. Gentlewoman yields back to Miss Garcia's time. Miss Garcia, there's no time remaining. No time limit. I just I concur with remarks. Great. Green from Texas. Who seeks recognition? Green from Texas. Uh Mr. Green, you're recognized. The strike last word. Uh thank you, Mr. Chairman.
▶ 5:50:40Um I concur with what the ranking member is presenting and I especially would point out that the imalments clause of the constitution prohibits gifts and other forms of payments and it seems to mean that the president is in breach of the clause. I yield to the ranking member. Thank you much, Mr. Three on the live on the live stream introducing world liberty. Donald Trump Jr. held the men as first class financial minds.
▶ 5:51:08Quote, "You could put them in a boardroom at Goldman Sachs and they're going to smoke the people in the room." Quote unquote. He said in October, Mr. Hero and Mr. Folkman got to work on the company's first initiative selling a new cryptocurrency which is called I guess that is dollar sign WLFI with the goal of 300 million in sales.
▶ 5:51:30These coins would be different from dollar sign Trump the so-called meme coin that spiked in January after Mr. Trump marketed to his followers before it abruptly crushed. A memecoin is a type of cryptocurrency based on an online joke or celebrity mascot. It has no practical function other than speculation.
▶ 5:51:54After dollar sign Trump's initial surge, its price plummeted, costing investors a cumulative $2 billion. World Liberty, at least according to its marketing pitch, eventually plans to operate as a new type of internet bank that would allow customers to borrow and lend money in various digital currencies.
▶ 5:52:15Anyone who bought dollar sign WLFI coins would get to vote on certain bank business decisions just like shareholders in a traditional company. Mr. Trump was at the core of the pitch. The company published a 13page gold paper that describes his mission and leadership team. On the cover was a portrait of Mr. Trump styled to look as if gold paint had been splashed across the page.
▶ 5:52:44He would serve as the company's quote chief crypto advocate, the paper said, quote unquote. When World Liberty launched, the Trump family and its affiliates were given 22 billion units of the crypto coins, a stash now worth at least 1.1 billion on paper, depending on the various prices used in recent sales.
▶ 5:53:07Under the company's rules, the Trumps and other world liberty investors are not allowed to sell their coins on the open market. Though the company has said it might eventually lift that restriction if other buyers of the coin agree. Initially there are few buyers. By the end of October, World Liberty had sold only 2.7 million worth of the coins, a tiny fraction of its gold. Election day was a gamecher.
▶ 5:53:36a flood of investors with polls closed in most of America and Mr. Trump on his way to victory. The world liberty account on ex posted a c celebratory message on November 5 quote bring things on the horizon quote unquote. Soon a surge of investment f flowed into world liberty's cryptocurrency.
▶ 5:54:01Most crypto purchases are recorded on a public ledger known as blockchains with the buyers and sellers largely uh anonymous. But world liberty has said it performs extensive checks on investors in its coin so it knows who they are. The blockchain is a publicly viewable ledger of all crypto transactions every time someone spends money with a digital coin.
▶ 5:54:27It shows up as an entry allowing investigators to track the flow of funds. However, in most cases, the identities of the buyers and sellers are concealed behind strings of letters and numbers. An analysis per analysis performed by the times by the forensic firm Nansen drawing on crypto industry data showed that many of the investors were based abroad in places like Singapore, South Korea, Hong Kong, and the United Emirates.
▶ 5:54:58Federal law prevents foreigners from donating to presidential campaigns or inaugural funds. But World Liberty's coin sale offered a new legal way to back Mr. Trump. I yield back the balance of my Gentlewoman yields back to Mr. Green. Mr. Green, you have I yield. Gentlemen yields back to the chair. Is there debate? Uh Dr. Foster. Yeah. Thank you.
▶ 5:55:28And I yield my time to the ranking member. Thank you. Thank you very much, Mr. Foster. The reason for purchasing such a token was to support Trump's inauguration as he was the first crypto friendly president of the United States. Quote unquote, said Kier Law, chief strategy officer at Arbiter Finance, a Hong Kongbased entity.
▶ 5:55:52Some investors domestic and overseas have managed firms that ran a fall a foul of US regulations. One was Yonyi Assa, an Israeli who founded Euro, an online trading platform whose US subsidiary reached a 1.5 million settlement with the SEC just last year for cryptoreated violations. Char Murray, a Puerto Rico-based investor who brought World Liberties corn.
▶ 5:56:21Before that, he had helped create Barnbridge, which in late 2023 agreed to pay the SEC $1.7 million to settle his own cryptoreated accusations. Since Mr. Trump took office. Some world liberty investors have pushed to government for regulatory approvals or poised to interact with the administration as they try to build or expand businesses in the United States. In March, Mr.
▶ 5:56:49Asus company notified the SEC that it is intended to go public in the United States. DWF Labs, a crypto firm based in the United Arab Emirates, announced this month that it had brought 25 million of dollar sign WLFI and that it was opening a New York office. Our visibility in the US has been increased quote uh because of this deal.
▶ 5:57:18Andrew Graychef, the managing partner of DWF Left, said in an interview, "We would like to have direct dialogue with the policy makers, quote unquote." The crypto executive with perhaps the most to gain from his affiliation with World Liberty is Justin Sun, a Chinese billionaire who founded the crypto platform Tron, TR O N. Mr.
▶ 5:57:40Sun gained global attention just last year when he spent 6.2 2 million at an art auction to buy a banana that had been duct taped to a wall. Not long after that, Mr. Sun made another headlong grabbing maneuver. He spent 75 million on dollar sign WLF coin. The investment drew widespread criticism given that Mr. Sun had a clear incentive to gain favor with the Trump White House during the Biden administration.
▶ 5:58:11The SEC sued Mr. son, arguing that he had fraudulently inflated inflated the price of a Tron cryptocurrency. Mr. Sun has denied the SEC's charges and in a text message to the Times last year, he said his world liberty investments was simply a vote of confidence in the Trump's family's excellent project. In late February, the SEC asked a federal judge to halt proceedings in Mr. Sun's case.
▶ 5:58:39The agency said it was exploring a potential resolution. Quote unquote, the judge granted the stay. Justin Sun gave World Liberty a big lift. But Mr. Trump's company wanted more money, much more. So World Liberty executives soon announced that they what they called a transformative initiative, quote unquote, to partner with other crypto outfits and invest in their coins.
▶ 5:59:05The strategy, the executive said in February, would leverage World Liberty's growing clout to help their lesserk known partners. It's like taking care of your brother in the space, uh, Mr. Herold said in a crypto event in New York last month. But World Liberty's public pronouncement omitted a key aspect of his private pitch to several crypto startups.
▶ 5:59:30Executives at this country told the Times, "World Liberty wanted to sell its own coin, not just to invest in others it was proposing a currency swap." I yel back. The gentleoman yields back. Who seeks recognition? Dr. Foster, you have 46 seconds left. You don't now. Sorry. He yields back. Back. Who seeks recognition? Mr. Chairman, I move the strike the last word. Gentleman from Louisiana.
▶ 6:00:00Uh I yield my time to uh the the ranking members member Miss Waters. Gentlewoman's yielded to for Mr. Fields. Thank you very much. I appreciate Mr. Fields. Here's the deal. World Rivity offered according to executives at three crypto firms approached by the company. The startups would spend between 10 million and 30 million on a large chunk of World Liberty's coins.
▶ 6:00:24In return, World Liberty would buy a smaller amount of each startup's own cryptocurrency. World Liberty would keep the rest of the money for itself, a premium as high as 20%. World Liberty's purchase would signal to the market that Mr. Trump's firm had deemed the startups worthy of investment, but the market would have no way of knowing that World Liberty had compensated for that endorsement.
▶ 6:00:52Some details of a seminal pitch from World Liberty were previously reported by Block Works, an industry news outlet. They kept telling us, and I quote, "We're like, we like we're super close to Trump," said Mick Silagi, the chief executive of Ether Fi, a crypto startup that World Liberty approached.
▶ 6:01:20We immediately rejected quote unquote said Dominic Schneider who founded IOTA Foundation a Berlinbased group that also received the pitch quote is a very dishonest approach quote unquote. In his statement Mr.
▶ 6:01:35Watchman, the world liberty spokesman said the Times reporting contained fundamental misunderstanding about standard industry practice quote unquote and called the company's business arrangement quote not only common in the blockchain industry but essential for creating lasting economic alignments in business generally quote unquote quote these arrangements establish skin in the game for all parties.
▶ 6:02:02He added, quote unquote, "The benefits of a partnership were enough to attract at least five crypto firms to strike other deals with World Liberty without disclosing details of the financial arrangement." The Times found in one deal, the Sue, a CUI Foundation, a US-based group, announced that World Liberty would buy an unspecified amount of its currency, cryptocurrency, prompting SUI's price to jump more than 10%.
▶ 6:02:33As part of the arrangement, the foundation has slated was slated to receive World Liberty's coins in return, said two people familiar with the deal who requested to be anonymous to discuss private negotiations on World Liberty Partnerships have shown how Mr. Trump is mixing his official role with his business. In December, the company announced that it would use technology designed by a startup based in Lisbon, Ethnic Labs.
▶ 6:03:02Ethnena Ethina Labs. It also brought more than five million of Athena's cryptocurrency. One of Athena's investors is Arthur Hayes, a crypto entrepreneur who plead guilty to violating the bank secrecy act in 2022 and was sentenced to six months of home detention. Last month, Mr. Trump granted Mr. Hayes a pardon. A spokesman who represents both at HEA and Mr. Hayes declined to comment.
▶ 6:03:31Another World Liberty partner is Onondo Finance, a New York-based startup backed by Founders Fund, the conservative billionaire Peter Thiles venture capital firm World Liberty made its first purchase of Ando's coins in December, buying more than 130,000 of them. The transaction, at least briefly, helped drive up the price of Ando's coin, drawing headlines in crypto news sites celebrating World Liberty's death.
▶ 6:04:00In January, Andono donated $1 million to Mr. Trump's inauguration, securing an invite to a candlelight dinner at the National Building Museum in Washington, where the guest list included several of Mr. Trump's cabinet nominees. Ando also helped sponsor an inauguration event called Crypto Ball soon after Donald Trump Jr. and World Liberty's management team were headlines at a conference and organized in New York.
▶ 6:04:25Quote, "This is a moment we aren't sure what's going to happen." uh Ayan De Bodi Ando's chief strategy officer said from the stage but sometimes the stars align with that I yel back until I have another opportunity to continue the times article the gentleoman yields to the gentleman from Louisiana gentleman from Louisiana yield back he yields back who seeks recognition Mr.
▶ 6:04:54Vargas of California thank you very much Mr. Chair, I move to strike the last word. Gentleman's recognized. Thank you, Mr. Chair. I yield to the ranking member. Thank you so much. Gentlemen, may you I appreciate that. In February, February, Eric Trump passed along some investment advice to his followers on Elon Musk's social media platform X. Quote, "In my opinion, it's a great time to add dollar sign ETH." Quote unquote.
▶ 6:05:23It was the ticker symbol for a digital coin called Ether. You can thank me later, quote unquote, he added before deleting that line. His advice proved precedent. The next month, his father announced the creation of a US crypto reserve, a Fort Knox repository of cryptocurrencies intended to help bolster the industry.
▶ 6:05:46Ether is the second most valuable cryptocurrency behind Bitcoin, worth about 1,800 at current prices. Many of the most influential crypto companies use the coin to conduct transactions and build financial applications. Mr. Mr. Trump's announcement included a list of digital currencies to go into the stock market.
▶ 6:06:12Along with Bitcoin, he included Ether saying it would be at the heart of the reserve. Ether's price surged more than 13%. The spike, excuse me, the spike had an immediate beneficiary, World Liberty. Over the previous few months, the company had bought 240 million worth of Ether.
▶ 6:06:38According to Arham, a crypto data firm, the day the president announced the crypto reserve, the value of World Liberties, Ether Stash rose by $33 million, assuming had it had not sold any of its holdings. That gain was later lost as Ether declined in value. The same pattern, Mr.
▶ 6:07:00Trump making policy announcements or posting messages that intersected with World Liberty's business interest occurred again in March. In a video feed at a crypto conference in New York, Mr. Trump called on Congress to pass legislation governing stable coins, a type of crypto designed to maintain a value of the dollar. Stable coins are a type of cryptocurrency that maintain a constant price of $1.
▶ 6:07:29They differ from traditional digital currencies like Bitcoin which constantly fluctuate in price making them easier to use for certain types of transactions. Company that issues stable coins operate similar to banks. The issuers make money by taking deposits from investors, giving them coins in return and then investing those depositives to generate a yield that the companies keep.
▶ 6:07:57Now, let me just say both the Senate and the House have introduced bills that would make it easier for firms issuing stable coins to operate in the United States. In his remarks last month, Mrs. Trump said that the rise of stable coins would expand the dominance of the US dollar. A week later, World Liberty announced it was releasing its own stable coin, USDI. Is that USD1 or I one? USD. USD1.
▶ 6:08:25The future is here and it is so bright. Zach Widolf wrote on X. Jordi Alexander, a crypto executive who helped World Liberty with his plans to launch a stable coin, said in an interview that the company had already secured commitments of at least $1 billion from investors to buy stable coin while it since it um once it hits the market. The new venture will only compound world liberty's ethical conflicts.
▶ 6:08:54The company plans to offer USD1 on a platform developed by Binance a giant exchange that settle criminal charges with the justice department in 2023. This week, Mr. Widolf, Mr. Herrow, Mr. Fa met with Shang Pan Zo, finances founder and former executive in uh Adobe uh Abu Dha. I'm sorry.
▶ 6:09:24In Abu Dhabi, Mr. Zo, who served for four months in federal prison for money laundering violations, have been seeking a pardon from the Trump administration, according to people familiar with the matter, who requested to be anonymous to discuss a sensitive topic. The pardon effort was first reported by the Wall Street Journal. Uh, I just want to remind our members that Mr.
▶ 6:09:49Trump was cutting deals on stable corn uh while we were in the middle of negotiating right here in this committee on stable corn. I you'll back the balance of my time. Gentlewoman yields back to Mr. Vargas. Mr. Vargas' time has expired. Who seeks recognition? There being no further debate, the question now occurs on the amendment offered by the gentleoman from California. All those in favor, please say I. I. All those opposed, please say nay. Nay.
▶ 6:10:18In the opinion of the chair, the naysay have it. The nays have an amendment is not adopted. I have an amendment at the desk. Recorded vote. Record. Is the gentleoman asking for a recorded vote? The gentleoman's asking for a recorded vote. All those in favor of recorded vote, raise your hands. A sufficient number having raised their hands. A recorded vote is so ordered. Pursuant to subsection C5, rule three, the committee rules a vote is postponed. We will now move to the next amendment.
▶ 6:10:46Who seeks What is it? Amendment. I have an amendment at the desk. Mrs. Waters has an amendment at the desk. We'll wait and for a moment while it's distributed. Mr. Chairman, Mrs. Wagner, I'd like to reserve a point of order. Point of order is reserved. This is the very last part of the article. If you have extra time, this is just the last page of that article.
▶ 6:11:19My memory is here. I'm going to This is the last part of that article, the New York Times article. Oh, is that right? So, I can add that. Yeah, you should add it to you'll probably read the end of this.
▶ 6:12:12clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Miss Waters of California designated as L02. This is her fifth amendment. Without objection, the amendment's considered read and the gentleoman is recognized to discuss her amendment. Thank you very much, Mr. Chairman.
▶ 6:12:36This amendment would ensure that the Financial Stability Oversight Council would access and monitor the risk to financial stability that would arise if the federal government required the use of a particular stable coin or other crypto to enter into transactions with the government, including Trump's own crypto.
▶ 6:12:56Under this amendment, FSOC would also monitor risk arising from agency's adoption of digital assets for internal operations and external deployment. Federal agencies carry out critical work to support vulnerable communities and consumers and should not be subject to the president's selfdealing and risky experimentation.
▶ 6:13:20For example, the Department of Housing and Urban Development supports over 5 million households nationwide through various programs, including assistance for renters with low and moderate incomes. The share of people in struggling households include children, seniors, and individuals with disability. HUD oversees billions in aid and tracks trillions in mortgages, all critical lifelines to vulnerable communities who rely on this help.
▶ 6:13:47In addition to the chaos Trump is wreaking upon uh economy on on the economy, I'm deeply concerned about the unnecessary risk and volatility his administration is interjecting into HUD and other agencies. In the past, we've seen similar risk introduced in the housing market, which led to the 2008 housing crisis.
▶ 6:14:10According to recent reports, HUD is attempting to experiment with crypto in their operations, including by paying grantees in stable coins or crypto. The Spurs have cautioned that Trump executive orders would allow alternatives to the dollar for taxes and other payments to the government. Now, Trump has his own stable coin through his World Liberty Financial Project and his own meme coin that he is using to auction off special access to the White House.
▶ 6:14:41This leaves the door open for Trump to require the use of his stable coins and meme coins in order to pay taxes or enter into other arrangements with the government. This would be just another in a string of his administration's egregious conflicts of interest. So, we must pass this amendment in order to ensure we're watching out for all of the risk present in these arrangements. And so, the overlap between Mr.
▶ 6:15:08Trump's policy pronouncements and his business interest have alarmed congressional Democrats who moved recently to amend the pending stable coin legislation to bar the Trump family from issuing one. The amendment failed and none of the concerns about world liberty have disrupted its momentum. Last month, Mr. Widolf uh was among a group of executives invited to the White House for a firstofits-kind industry summit.
▶ 6:15:39After the meeting, Mr. Widolf posed a photograph on social media of him smiling inside the White House next to Mr. Hero and Mr. Folkman. And so, uh, thank you, Mr. President. Quote unquote, Mr. Widolf wrote. Uh, that I yield back the balance of my Gentlewoman yields back. Who seeks Gentleman from California. Thank you.
▶ 6:16:08I'd like to thank the ranking member for introducing this amendment. Um, I also want to thank uh President Trump uh because I think his recent actions in inviting top 220 investors in his memecoin to the White House for unique private access in the White House has really put an awful lot of doubts to bed. Uh questions are now resolved about whether or not uh this administration has become a kleptocracy.
▶ 6:16:35Uh this is making the teapot dome look like tempest in a We critically need independence uh in decision making around the very issues that the ranking member has identified with regard to which particular stable coins or other digital assets will be able to contract with the government. We have seen very problematic relationships already with regard to several companies uh owned or uh begun uh launched by Elon Musk.
▶ 6:17:04Uh and this is exactly the kind of amendment uh and this and many others that we need to start to hold this administration accountable. Thank you. I yield. Gentleman yields back. Who seeks Green from Texas. Mr. Green recognizes strike the last word. Thank you, Mr. Chairman. Mr.
▶ 6:17:25Chairman, I would like to read from an article styled Trump to host gayla for top $220 sign Trump meme coin holders at DC Golf Club. Um, this is the block from uh on April 23rd, 2025 by Sarah Win.
▶ 6:17:46President Donald Trump will host the top 220 owners of his meme coin at his privilege private golf club in the nation's capital. Trump, who launched his own meme coin called Dollar Sign Trump days before his inauguration in January, will host a gayla on May 22nd at the Trump National Golf Club in Washington DC for the top 220 average dollar sign Trump holders
▶ 6:18:17over a designated period of time. According to the project's website, holders are encouraged to hold as much dollar sign Trump as you can from April 23rd to May 12th, which will determine the ranking. The more dollar sign Trump you hold, and the longer you hold it, the higher your ranking will be according to the site, which also posted a leaderboard on Wednesday.
▶ 6:18:46The White House did not immediately respond to a request for comment. Since Trump took office on January 20th, he has taken a friendlier approach to crypto, tapping agency chairs that are viewed as open to the industry and recently hosting a crypto summit.
▶ 6:19:06Trump launched a dollar sign Trump meme coin in late January with his Melania following suit with one of her own. At the time, dollar sign Trump garnered some criticism from the crypto insiders who insist that it distracts from the greater good given crypto's risk.
▶ 6:19:33Of the 220 going to the gayla, the top 15 dollar sign Trump holders are invited to an exclusive reception before dinner with your favorite president and will also get a VIP White House tour. I'd like to just pause and comment on the VIP White House tour. I think that clearly this should be investigated.
▶ 6:19:58I don't know how you can allow your personal business interest to somehow become a part of what your presidential duties are in terms of providing tours at the White House. It would just seem to me that we should be investigating this type of activity among the many others that we should be investigating.
▶ 6:20:18But in any event, the price of dollar sign Trump ballooned to close to $14 on Wednesday, up from closer to $9 earlier in the day, according to the blocks price data, which means that the president's asking people to buy uh is having an impact. And by the way, uh these people buying could very well be persons who are doing this to curry favor with the president in other areas.
▶ 6:20:47uh of their endeavors. Uh Trump previously reportedly held a dinner last year in Palm Beach, Florida to meet supporters who brought his mugshot NFTTS. Those NFTts were from his 2023 arrest and conspiracy charges to overturn the US 2020 election results.
▶ 6:21:17It is intuitively obvious to even the most casual of observers that the president is marketing the presidency that he has decided that he will make as much money as he can from holding the office that he holds, the high office that he holds.
▶ 6:21:39And it would be a shame for this Congress to see all of this evidence, empirical evidence, and fail to investigate the what is before us, what is patently obvious as a violation of the imalous clause of the Constitution. Uh unfortunately, we don't have the will.
▶ 6:22:03The way is there, but without the will, this president is literally going to get away with to some extent what one might call a low-level form of extortion to produce a high amount of dollars. I yield back. The gentleman yields back. Who seeks There being no further debate, the question now occurs on the amendment offered by the gentleoman from of California. Mr. Chairman.
▶ 6:22:34Uh oh, I'm sorry. Yes, Miss Wagner. Do you still insist on your point of order? I withdraw my point of order. The gentleman withdraws her point of order. Thank you so much. All those in favor of the amendment uh by Mrs. Waters signify by saying I. I. All those opposed, he'll signify by saying nay. Nay. In the opinion of the chair, the naysay have it. The naysay have it. The amendment is not adopted. The gentleoman is requesting a recorded vote. Those in favor of recorded vote, please raise your hands.
▶ 6:23:03A sufficient number having raised their hand. A recorded vote is so ordered. Pursuant to subsection C5, rule three of the committee rules. Further proceedings on the amendment are postponed. Who seeks recognition? Uh Dr. Foster, you're recognized. Yeah, I have an amendment at the desk. We'll pause while it's distributed.
▶ 6:24:52Mr. Chairman, clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Foster of Illinois designated as Foster 030. This is his fourth amendment. Gentlewoman, I reserve a point of order, Gentlewoman reserves a point of order. Without objection, this amendment will be considered as read. And Dr.
▶ 6:25:19Foster from Illinois is recognized to describe his amendment. Uh thank you, Mr. Chairman. This committee is tasked with ensuring the proper functioning of US financial markets. To deliver that, we've crafted laws to prevent market manipulation such as frontr running, insider trading, pump and dump schemes, and other abusive practices that unfairly disadvantage the public. Another factor that we often consider is the way that government officials communicate market moving information.
▶ 6:25:47We are all aware of how the entire financial world hangs on every word to the chair of the Federal Reserve and the tremendous integrity with which our our chair Jay Powell handles this responsibility. Other announcements that move markets can include inflation data, employment numbers, interest rate decisions, and significant policy changes.
▶ 6:26:06Last year, the Bureau of Labor Statistics made a series of mistakes that resulted in market moving information being released early or to a small group of recipients, giving those individuals an edge over other investors that did not receive this sensitive information. One technical glitch allowed two large banks to access employment data more than half an hour before the rest of the market. And in our fast-moving markets, a half an hour is an eternity.
▶ 6:26:32While the BLS states that they have investigated these instances in incidents and made procedural changes to address the faults, the Trump administration is raising new questions every day about the federal government's treatment and publication of market moving data. I'm not talking about the way Doge will take over the Department of Labor, drop the firewalls, and exfiltrate bulk data on individual businesses, salaries, payments, and and labor histories.
▶ 6:26:58And what I'm talking about is the way that President Trump and Elon Musk both communicate policy announcements and plans via social media platforms where they are the majority owner. Trump has true social, Elon Musk has X.
▶ 6:27:13Famous example of this is when President Trump announced on his privatelyowned social media platform, quote, "This is a great pl time to buy exclamation exclamation four hours before he announced a 90-day pause on most tariffs, which by the end of the trading day resulted in a 9% jump in the S&P and a 12% jump in NASDAQ. I believe those kind of actions are not only unethical, but they undermine the faith in US markets.
▶ 6:27:43By forcing users onto these platforms to receive the latest uh and sometimes only updates on presidential policymaking uh the owners of these platforms are enriching themselves with dollars and with data and giving them an edge on on the markets giving an edge in the markets to their users but only to their users.
▶ 6:28:04Now, just imagine for a second that you're a startup trying to make a market advisory app or or market newsletter and you're trying to compete against that kind of corrupt leaking of inside information um on Trump's or Elon's private social media platforms. But it does not end there.
▶ 6:28:23Uh, Treasury Secretary Bessant recently reportedly told a private group of bankers non-public information about the International Monetary Fund's report on the global economy, specifically that turmoil caused by the Trump's tariffs had forced the monetary fund to rip up its report and start again. So, you know, I think that's market moving and it is massively inappropriate.
▶ 6:28:48So the mechanisms that the executive branch uses to announce this sort of information matter and leaking non-public information to private groups of bankers or announcing changes of tariff policy to a narrow portion of the population that chooses to subscribe to your private app is unfair and it harms the reputation of US markets.
▶ 6:29:09And that's why I'm offering this amendment that would provide FSAC and OFR with the resources to conduct a study of mechanisms that the executive branch officials use to publish market moving information and the risks of publishing such information through unapproved channels.
▶ 6:29:25It also requires EPSOC to determine whether publishing marketmoving information on a platform owned by the executive branch officials presents a conflict of interest, can result in financial gain, or generates other adverse outcomes that could threaten the stability of financial markets.
▶ 6:29:42This amendment will provide Congress with insights on how to improve mechanisms for releasing s sensitive economic information and ensure safeguards are in place to prevent executive branch officials from using their own platforms and position for financial gain. So I encourage my colleagues to support this amendment. This is information that Congress needs. Thank you and I yield back. Gentleman yields back. Gentleman from Missouri, do you insist on your point of order? No sir, I withdraw.
▶ 6:30:12Gentleman withdraws her point of order. Is there further debate on Dr. Foster's amendment? Yes, sir. Um, Miss Wagner, you're recognized to strike the last word. Thank you, Mr. Chairman. I do in fact strike the last word. And Mr. Chairman, this amendment introduces policy matters. In fact, a study that falls outside the scope of the committee print which specifically focuses on budgetary implications for agencies within our committee.
▶ 6:30:39I urge my colleagues to vote against this amendment to maintain our focus on strengthening the nation's fiscal standing. Thank you, Mr. Chairman. I yield back. Gentleman from Missouri yields back. Is there further debate on Dr. Foster's amendment? Green from Texas. Uh the gentleman from Texas is recognized to strike the last word. Thank you, Mr. Chairman. Mr. Chairman, I'd like to thank Mr. Foster for offering this amendment.
▶ 6:31:07President Trump has launched the most chaotic first 100 days we've ever seen come to the White House. He constantly posts his latest thoughts on social media. Whether it's his attacks on the independent Federal Reserve or announcements about massive tariffs that I call Trump tariff tax by the way against most of the world's countries that may also change at a moment's
▶ 6:31:37notice. We have seen the market crash not once, not twice, but several times in the last 100 days. And at the very least, the Financial Stability Oversight Council should conduct a study to examine the impact on threats to financial stability Trump's chaos may impose.
▶ 6:31:59It is also worth noting how social media fueled the fastest bank run we've ever seen when Silicon Valley Bank had its debacle. So we have seen social media posts can have a financial stability impact. So this is an important issue to study. I urge members to support this amendment and I yield back. Gentleman yields back.
▶ 6:32:30Who seeks recognition? If there's no further debate, the question now occurs on amendment offered by the gentleman from Illinois, Dr. Foster. All those in favor, please say I. I. I. All those opposed, please say nay. Nay. In the opinion of the chair, the nays have it. The naysay have it. Amendment is not adopted. A recorded vote, please, Mr. Chairman. A recorded vote has been requested. All those in favor of recorded vote, raise your hand. A sufficient number having raised their hand. A recorded vote is so ordered.
▶ 6:32:59Pursuant to subsection C5 of rule three of the committee rules, further proceedings on the amendment are postponed. We will now move on to the next amendment. Is there someone seeking recognition from California, Mr. Vargas? Thank you very much, Mr. Chair. And for the Red Bull, you're welcome. Very much appreciated. I do have an amendment at the desk. Gentleman has an amendment at the debt. Will Paul Swats distribute it. The baby wants a Red Bull, too.
▶ 6:34:32The clerk will report an amendment to the amendment in the nature of a substitute to the committee print offered by Mr. Vargas of California designated as G16. This is his first amendment. Uh Miss Wagner, I reserve a point of order, Mr. Chairman. Point of order is reserved. I'll turn to the author of the amendment, Mr. Vargas for 5 minutes. Thank you, Mr. Chair, and thank you for the opportunity to present this amendment.
▶ 6:34:58This amendment directs the Financial Stability Oversight Council, the FSOC, and the Office of Financial Research, OFR, to conduct a study and then issue a report on the independence of the Federal Reserve. Specifically, it requires EPSC to study how the president's attempt to undermine the independence of the Fed, including by attempting to fire the chair and other members of the board of governors, how it could harm the US economy.
▶ 6:35:24On the task force on monetary policy, Treasury market resilience and economic prosperity, where I'm the ranking member, we have discussed the virtues of independent central banks at length and the research is clear. Central banks function at their best when they're allowed to operate independently without political interference. Elected officials mostly operate on a short-term horizon, responding to short-term political incentives.
▶ 6:35:53Central bankers, however, must take both the short and the long-term impacts of monetary policy into account. Congress laid out the Fed's mission when it tasked it with the dual mandate goals of price stability and maximum employment, but it left it up to the Fed to use its tools to the best of its ability to achieve these goals.
▶ 6:36:15In doing so, Congress acknowledged that having the Fed's monetary policy decisions insulated from outside political pressure or loyalty to anyone individual is crucial for the long-term health of our economy. Monetary policy decisions matter to Americans and impact their daily lives. They cannot be driven by a 24-hour news cycle. In fact, it's because of how important economic stability is that we cannot afford to let them be guided by the politics of the moment.
▶ 6:36:43And although the body of academic research on the effectiveness of independent central banks is clear, it seems as though this might not be a settled issue at this White House. This month, the president wrote on Truth Social that we heard about already that Mr. P quote, "Pal's termination can't come fast enough." End of quote. And he also said to reporters, quote, "If I want him out, he'll be out of there real fast. Believe me." End of quote.
▶ 6:37:10And although he has pontificated how he knows more about the interest rates than the Fed chair, he recently seemed to walk back those threats only to have to look at the tariff policy to know easily he can change his mind. In fact, yesterday it seemed that he changed his mind once again. So, this amendment sets aside the necessary funds as determined by EPSC to conduct a study and issue a report on the potential harm of a president undermining the independence of our central bank.
▶ 6:37:39Our economy is simply too important to protect and not to take this simple step to protect it. And once again, you hear the president saying that he's going to fire the Fed chair, that he can fire the Fed chair, and then he says he's doing a terrible job, and then he says, "No, I'm not going to do I'm going to treat him nicely." But he's so fickle, you don't know what he's going to do, and that's the chaos that we're living with right now. So, I think this is a very important amendment. And with that, Mr.
▶ 6:38:08Chair, I yield back to Gentleman yields back. Who seeks Gentlewoman insist on her point of order. Green from Texas. Mr. Chairman, I withdraw my point of order. Gentleman with gentleoman withdraws. Mr. Green of Texas recognizes strike the last word. Thank you, Mr. Chairman. And I'd like to thank Mr. Vargas for his important no bull amendment.
▶ 6:38:36Uh, this amendment would allow the Financial Stability Oversight Council and Office of Financial Research to conduct a study and issue a report on how the president undermining the independence of the Fed by attempting to fire the chair and other board members can harm the US economic financial system and dollar primacy.
▶ 6:39:02There really is a war for dollar This action by the president or these actions are a danger and a threat to the primacy and primacy of the dollar. Uh earlier this month, President Trump announced he wanted to fire Cher Powell because he is frustrated at Powell's attempts to stabilize the economy by putting a pause on cuts to shortterm interest rates.
▶ 6:39:32Powell has made it clear that the Trump tariffs that I call Trump tariffs tax are creating uncertainty about slower economic growth and higher inflation aka higher prices for consumers.
▶ 6:39:50Then he walks back his statement by saying, "I have no intention of firing him." But just yesterday at his Michigan rally celebrating his first 100 days of failures, he said he knows more about interest rates than Chair Powell. So which is it? Is he going to attempt to fire Cher Powell or not?
▶ 6:40:13These attempts to fire Cher Powell and undermining the independence of the Fed at large put our American financial system at high risk. This makes us less competitive on a global economic stage. President Trump continues to operate with this unchecked power.
▶ 6:40:31He is arresting judges that disagree with him, punishing law firms and universities that defy him, and now trying to fire the head of an independent agency. I strongly urge my colleagues to support Mr. Vargas and this amendment, and I yield back. Gentleman yields back. Who seeks recognition? That's uh Mr. Foster.
▶ 6:41:00Well, I'd like to just take a moment for everyone to imagine for a second uh that we might theoretically at some point have a uh the leader of a country who is just completely off the rails in terms of believing in economic policy that no responsible uh no responsible economist would ever support. um and that moreover you would that person would have a central bank that would be compliant to his will and then then imagine the damage that could be done by that.
▶ 6:41:30You know I'm speaking of course of Turkey uh where you had a president and an opposition and uh well you had the the support for the president such that um you would not they were unable the opposition was unable to really um counter what he was doing. Uh but he believed his particular crazy idea was he believed that when you had high inflation, you should lower inflation rates, okay? Lower in interest rates.
▶ 6:41:57And of course, he had control over the um over the effective control over the national bank. And guess what happened? As every economist would say, the the inflation would explode. Yeah. We now this is only theoretical. I'm sure we would never ever in our country have a president who um believed in things that no no responsible economist did. But the damage that is done when that happens is enormous.
▶ 6:42:22So have a look at the recent economic history of Turkey and appreciate that we don't want to go there and appreciate that we need to have firewall after firewall after firewall to protect the independence of the Federal Reserve. And this amendment is a good start and I urge my colleagues to support it. Gentleman yields back. Who seeks recognition? Seeing no other members seeking recognition, the chair recognizes themselves for the purposes of striking the last word.
▶ 6:42:50Purpose of the committee print is to address budgetary matters for agencies within our jurisdiction. This amendment introduces policy matters to maintain our focus on strengthening the nation's financial stability. I urge a no vote and yield back the balance of my time. Uh if there's no further debate, the question now occurs on the amendment by the gentleman from California. Uh all those in favor, please say I. I. All those opposed'll signify by saying nay.
▶ 6:43:20Nay. In the opinion, the chair the nays have it. Nays have it. Amendment is not adopted. A recorded vote, Mr. Chairman. A recorded vote has been requested. All those in favor of recorded vote, please raise your hand. Sufficient number having raised their hand, a recorded vote is ordered. Pursuant to subsection C5 of rule three of our committee rules, further proceeding on the amendment is postponed. We'll now consider additional amendments to the ANS. Gentleoman from Michigan. Um, Mr. Chair, I have an amendment at the desk.
▶ 6:43:50We'll pause for it to be distributed. Mr. Chairman, I reserve point of order. Point of order is reserved.
▶ 6:45:12Clerk will report an amendment to the amendment in the nature to nature of a substitute to the committee print offered by Miss Talib of Michigan designated as G13. This is her first amendment. Without objection, the amendment will be considered as read. And uh we now turn to the gentleoman from Michigan for five minutes to describe her amendment. Thank you, Mr. Chair.
▶ 6:45:38I think every one of us uh are back in our community these uh last couple of weeks, and I know we've heard directly from our residents, I hope. Uh, but I've never seen this many families in my community just completely break down of the fear of the fact that the Republican budget includes nearly a trillion dollar cut to Medicaid. No, it's true. Medicaid is being cut. It's a nonpartisan issue, y'all.
▶ 6:46:06I have people that voted for this president come to my town hall saying, "I have a special needs child." I think it's important because this is about the whole reconciliation project, you know, proposal that's being put out there, but they also cut $230 billion uh in food assistance programs. You know, the proposal before us today would cut gut consumer financial protection bureau.
▶ 6:46:28It's kind of like the 911 consumer protection agency for so many of our families that are being continually targeted for schemes and fraud because of corporate greed in our country. I mean, folks are not going to, our own residents are not going to be able to get justice in regards to again being victims of fraud. Uh, we're going to be able, you're going to see right now in this proposal, they're going to completely gut funding for housing improvements, dismantle institutions that oversee public companies and prevent like financial crisises.
▶ 6:46:58This is not like CFPB came out of nowhere. Is because of these bad actors. You know, we're acting like there's no history here of why we even have CFPB in the first place. But what's bad enough, you know, Mr. Chair, what really makes this worse is that this is all being done. It's truthful. Look at the nonpartisan organizations reporting out there's a Medicaid cut.
▶ 6:47:23But it's also because we're doing seven trill you all are doing 7 trillion in tax breaks for billionaire class and largest And let me say this again. The budget will cut crucial programs for for our families, many of which are in your communities, taking food away from children, letting people die from a lack of healthc care coverage. Let's make it clear, Medicaid is not the fix to secare in our country. It's actually the band-aid, and you're about to rip the off.
▶ 6:47:53It's gutting the consumer protection agencies that is there. that there is no way that none of your veterans or even our folks that have student loans didn't have to call CFPB because of these fraudulent schemes. All to give the richest people a tax cut, a tax giveaway. You know, our families are struggling. We all can agree on that. They're exhausted. Instead of making these federal programs better, they want to just completely cut it. Gut it and just go ahead and give the the billionaires and the corporations a big tax giveaway.
▶ 6:48:24Our country faces, we know, a cost of living crisis. We know this. Housing prices, and we've seen this in committee, housing prices and homelessness rates keep rising. Families are worried about how they will pay for groceries. I mean, Mr. Chair, just this morning, you know, commerce department announced that thanks to the president's chaotic and reckless policies that the US economy shrank in the first quarter of this year. This is not something coming from some partisan agency.
▶ 6:48:53Instead of addressing these life and death issues and and and crisises for so many of our families, the Republican budget wants to steal from the poor to give to the obscenely rich. They're so wealthy, y'all. My amendment establishes if there's a full reconciliation package that extends or expands tax cuts for individuals $400,000 or for corporations that are making more than 25 billion, not million, billion in annual revenues, today's
▶ 6:49:23proposal will not take into effect. Gutting programs for our families that are struggling right now is wrong. It's immoral. It's cruel. Doing so to make to pay for trillions of dollars, not millions, not billions, but trillions of dollars in tax cuts for the wealthy, the rich, the ultra rich is a slap in the face of every family struggling to pay their bills today. That's why my amendment will prevent again, what will my amendment will prevent today. And I really urge my colleagues to support this.
▶ 6:49:53This shouldn't be a partisan issue. We should choose our residents, not the billionaires. Mr. Chair, I yield back. The gentleoman yields back. who seeks recognition. The gentleman from Wisconsin is recognized to strike the last word. Thank you very much. Uh Mr. Chairman, this amendment uh misconrs what we're accomplishing in this committee print. The mark of today uh is about reducing spending in our jurisdiction. Uh since the amendment veers into policy changes, I urge my colleagues a no vote. I yield back. Gentleman yields back.
▶ 6:50:23Who seeks Green from Texas. Gentleman from Texas is recognized to strike the last word. Thank you, Mr. Chairman. And I also thank Miss Talib for offering this muchneeded amendment to ensure that these deregulatory measures that Republicans are trying to advance here aren't used to pay for the massive tax cuts Trump wants for himself, Elon Musk, and the rest of his billionaire
▶ 6:50:54buddies. And what do Republicans plan to do with this money? They're going to use it to give $7 trillion in tax cuts for billionaires and massive corporations. If that math doesn't compute, it's because they expect Americans to buy the next mega yacht for Jeff Bezos and the next Hawaiian bunker for Mark Zuckerberg.
▶ 6:51:24Make no mistake, this bill won't bring prices down, won't create jobs, but what it will do is end the American dream for too many Americans. The Treasury Department found that extending Trump tax cuts would benefit the top 1% of earners or those with a family income over $750,000 by saving them $32,118.
▶ 6:51:56Additionally, these cuts would save those in the top.1% of earners or those making more than 3.5 million a year an extra 314,266 a year. What happened to the money that Trump and his Republicans promised to put back in the pocket of hardworking Americans?
▶ 6:52:22I support this men amendment and would yield back my time and encourage members to support it as well. Gentleman from Texas yields back. Who seeks recognition? Does Miss Wagner still insist on the point of order? No, Mr. Chairman. I I There's no further debate. Question now occurs on the amendment offered by the gentleoman. All those in favor, please say I. I.
▶ 6:52:52All those opposed, please say Although uh the nays have it and the amendment is not agreed to. Gentlewoman, she a recorded vote has been requested. All those in favor record vote raise your hands. A sufficient number having raised their hands. A record vote is so awarded pursuant to subsection C5 of rule three of our committee rules. The proceedings on this amendment are postponed. We'll now turn to additional amendments to the amendment in the nature of a substitute.
▶ 6:53:21Who seeks recognition? The gentleman from Thank you, Mr. Chairman. I have an amendment. You have an amendment at the desk. Right. Uh we'll pause. We'll have the amendment Getting used to the rules again.
▶ 6:53:59We're going to do the call from
▶ 6:54:48Oh, you want to hold them? Would you like to establish a point of order there, Frank? just for some Mr. Chairman, Mr. Lucas, I believe a point of order would be in order. Mr. Mr. Lucas reserves a point of order. Clerk will report the amendment.
▶ 6:55:14An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Patterson of Colorado designated as G12. This is her second The the amendment will be considered as read. And we turn to the gentleoman from Colorado to describe her amendment. Did I reserve a point of order? Thank you, Mr. Chair. This amendment is simple.
▶ 6:55:36We've heard a lot about what will or won't be cut in the package that we're going to be seeing, the full reconciliation package, and to guarantee that none of the this bill will go into effect if the reconciliation package includes cuts to Medicaid, Social Security, or SNAP.
▶ 6:56:01These programs ensure families in Colorado and across the country can afford life-saving care, put food on the table, and keep a roof over their head. It's devastating to think about not only what's happening with the economy, how small businesses are being impacted now with tariffs and rising costs uh in families who are already struggling to get by that we're making it harder.
▶ 6:56:23But we are ripping the rug out from underneath so many people uh who rely on these services for the health care that they need. When I I was recently in rural Colorado in my district talking to uh the people that are going to be impacted the most that rely on access to uh health care in these uh very hard to find uh difficult in terms of accessibility in our rural Colorado hospitals
▶ 6:56:54that will have to shut their door if we cut Medicaid funding. Um, these are places that already struggle uh with access to any type of health care, let alone emergency services. When I think about our seniors who rely on social security checks uh to put a roof over their head, that's my in-laws, that's my parents, that's people across Colorado who will be unable to to pay their bills if social security checks are unable to be sent because we're dismantling every single
▶ 6:57:24agency um that oversees these overseas. as well as SNAP. I grew up in a a family who went through many hard times and the amount of times where we had access to food uh we were able to have food on the table because this program existed and that is not going to be available for so many kids were going to be left going hungry.
▶ 6:57:47And this really uh truly impacts rural Colorado the most when I because every single dollar um goes a further a long way. but also you have a higher percentage of people who rely on on Medicaid and on SNAP.
▶ 6:58:03And so, uh, while we're talking here about dismantling CFPB, this is guaranteeing that that critical piece, the funding, uh, for for those benefits will continue and that this will not be enacted uh, if they're cut.
▶ 6:58:19But it's also really difficult to be here recognizing that CFPB, the agency that has been able to deliver for consumers who have been taken advantage of for uh to make sure that they have somewhere to go if they have uh had been victims to fraud that they actually were able to have their money returned.
▶ 6:58:43We had $21 billion returned to consumers since its creation in 2011 and more than 200 million consumers eligible to receive relief from CV CFPB's enforcement work. Um, and so right now 70% of the funding for their budget is going to be slashed. Um this is all under the guise of balancing our budget. But we all know that this is actually increasing our deficit by trillions of dollars.
▶ 6:59:1383% of the tax breaks uh that are going to be prioritized here are going to the most wealthy individuals in this country. We have the greatest disparity that we've ever had in terms of economic opportunity and mobility uh in this country. It is going to continue to get worse, significantly worse with the cuts that are coming our way.
▶ 6:59:37Uh the tax breaks that are only supporting the most wealthy individuals that are making the American dream um that I've been able to live the the opportunity to build a better life, no matter where you come from, no matter your zip code, that if you work hard and play by the rules, you can succeed in the United States. uh so that we are crippling our economy.
▶ 7:00:01We're stripping away uh the the limited uh support system and safety nets that so many people rely on. And we're also taking the consumer protections uh away, the the agency that is there to support people who are being taken advantage of uh in this bill.
▶ 7:00:21And so I urge my colleagues to support our amendment in making sure that none of this will be enacted unless we are protecting the things that we say we're not going to cut, that we're not going to cut Medicaid, that we're not going to cut Social Security. Um, so let's make sure that that's the case. I yield back. Gentlewoman yields back. Does the gentleman from Oklahoma insist on his point of order? I withdraw my point of order, Mr. Chairman. Who seeks recognition?
▶ 7:00:50The gentleoman from Massachusetts is recognized to strike the last word. Yes. Uh yeah, thank you. Um thank you uh Congresswoman Patterson for this uh amendment um and for your impressive multitasking there while you advocate on behalf of your constituents uh and really the the nation. You know, Democrats have been sounding the alarm on the hurt and harm this Republican bill will unleash.
▶ 7:01:15In my district, the Massachusetts 7th, I've been holding town halls, listening to my constituents who oppose this bill uh for many reasons, but especially the Medicaid cuts. Republicans were told to not host town halls, and they definitely haven't been listening to the people in their district. It's gotten so bad that people living in Republican districts are now reaching out to my office to have their voices heard. Here is a letter from a constituent of Rep. Mlanes who sits on this very committee.
▶ 7:01:44These are the words of Mary Marinelli. I'm a hospice nurse who works four days a week. My son Michael was diagnosed with autism when he was 2 years old. He's nonverbal. He cannot be left alone and needs to be 247. Through Medicaid, my youngest son Shawn gets paid to be a caretaker for Michael, which really helps us out. When Michael became 18, he got on Medicaid and Medicare.
▶ 7:02:11It pays for his medication, treatment, hospital stays. It allows us to do some different therapies with him. He's also on social security, which he started receiving at the age of 18. It gives us extra money, about $900 a month, to take care of him. I am 70 years old. I am still working as a hospice nurse, four days a week. If they take Medicaid away, I don't know what I'll do.
▶ 7:02:40I'd have to get a second job. I received a letter on Friday. They want me to come into the Social Security office to talk about Michael's benefits. They've never done that before. And I was in despair all weekend, worried about them taking away his benefits. I don't know how we would function without Medicaid. It's already stressful enough even with these services. I can't imagine how much worse things will get. It would be a death sentence.
▶ 7:03:10As a nurse, I can talk about a lot of different angles to this. The physical ramification of patients falling more between the cracks. These politicians don't care about people like my son. They would rather that people like my son would just die. They don't think that he contributes to society or is worth anything. But as his mom, I know that is so so so wrong. Michael is a wonderful person who brings so much.
▶ 7:03:40I don't know what I would have done without Medicaid. I don't know if Rhett Mlan is here and has anything to say to Mary, her constituent, communicating to you Silence. The American people do not support this bill. and that includes those living in Republican districts. Mr.
▶ 7:04:09Chair, I'm grateful for the uh reconciliation survival kit that you've gifted to members. I only wish I had one for the American people. I yield back. Gentleman yields back. Who seeks Green from Texas. Mr. Green is recognized to strike the last word. Thank you, Mr. Chairman. Uh Mr.
▶ 7:04:33Chairman, members across the aisle have indicated that there will be no cuts to Social Security, Medicaid, or Medicare. If this is truly the case, Miss Peterson's bill or amendment should be supported. This amendment I have asked to read because there's a personal aspect to it as it relates to me which I shall explain at the end of reading.
▶ 7:05:03It is styled amendment to the amendment in the nature of a substitute to the committee print offered by Miss Peterson of add at the end the following section 50006 reductions to Medicaid, Social Security, and SNAP determination.
▶ 7:05:27Not later than one week after the date of enactment of this act, the Secretary of the Treasury shall determine whether the federal government has reduced any funding for Medicaid, Social Security, or the Supplemental Nutrition Assistance Program between January 20th, 2025 and the day after the date of enactment of this act and issue a report to Congress containing such determin mination
▶ 7:05:58and make such determination available to the public. Effective date. If in the report required under subsection A2, the secretary determines that the federal government has reduced any funding for Medicaid, Social Security, or Supplemental Nutrition Assistance Program between January 20th, 2025 and the day after the date of enactment of this act.
▶ 7:06:29This title shall not shall not take effect and the federal government has not reduced any funding for Medicaid, Medicare for Medicaid, Social Security or Supplemental Nutrition Assistance Program between January 2025 and the day after the date of enactment of this act.
▶ 7:06:51This title shall take effect on the date that is one week after the date of enactment of this act. In essence, if you don't cut, this goes your your legislation is good. If it you do cut, then you don't. Now, that's pretty reasonable. I I think that this is something that ought to be addressed. I think this is the legislation that is well suited to address the issue.
▶ 7:07:20It would put the debate to rest as to whether or not there is intentionality to cut Medicaid. Uh we know that the Energy and Commerce Committee, which has jurisdiction over this very issue, is charged with the responsibility of billion $880 billion from that committee's uh jurisdiction and budget, which would mean a cut in Medicaid, as most people have concluded.
▶ 7:07:50Now, maybe there are some who've concluded otherwise, but this legislation would resolve the issue and give us an opportunity to put to rest this debate about whether Medicaid is going to be cut. It would uh allay a lot of the constonnation many people are having to live with, not knowing what the consequences will be of this $880 billion cut.
▶ 7:08:12But most important of all, it would allow the people in this country to know that we are committed to Medicaid, Social Security, and SNAP, that these programs are meaningful and beneficial.
▶ 7:08:27And finally, this uh I remember well and some others may recall when I called this to the attention of the president at the joint session of Congress for which I have paid a price, for which I would pay the same price again and again and again because I believe that this country can take care of people who are in need of health care. We're the richest country in the world.
▶ 7:08:54We cannot allow health care to become wealthare such that those with the deepest pockets get the best care. This is a time for us to take a stand. Rarely in life do you have an opportunity to take this type of stand. We ought to take advantage of it and show this country and the world how we plan to treat not only those who live in the sweets of life, but how we plan to live treat those who live in the streets of life. Those who don't have the benefits that we enjoy and take for granted.
▶ 7:09:22I yield back the balance of my Gentleman yields back. Is there further debate? If there's no further debate, the question now occurs on the amendment offered by the gentleoman from Colorado. All those in favor, please say I. All those opposed, she'll signify by saying nay. Nay. The naysay have it. Amendments not agreed to and is not adopted. Uh recorded vote. The gentleman from Texas requests a recorded vote.
▶ 7:09:51All those in favor of recorded vote, please raise your hand. A sufficient number having raised their hand. A recorded vote is ordered pursuant to subsection C5 of rule three of the committee rules. Further proceeding on this amendment is postponed. Is there further debate on the amendment in the nature of a Seeing no further debate. Ah, thank you. I thought even at this late hour that would wake people up.
▶ 7:10:22What purpose does the gentleman from uh Colorado's I mean California seek recognition? Thank you for your patience, Mr. Chair. Uh I believe it's amendment number 15 at the desk. Mr. Clark has an amendment at the desk. We'll wait for it to be distributed. And thank you also for the Red Bulls.
▶ 7:11:24Lucas. Mr. Chairman, I would like to reserve port of order. Please. Gentleman from Oklahoma has reserved a point of order. Clerk will report the amendment. An amendment to the amendment in the nature nature of a substitute to the committee print offered by Mr. Licardo of California designated as G15. This is his fourth amendment. Without objection, the amendment is considered read and the gentleman from California is now recognized to discuss his amendment. Uh thank you, Mr. Chair.
▶ 7:11:54I seek to have the Financial Stability Oversight Council in consultation with the Office of Financial Research carry out a study on how the chaotic tariff plans of this administration and the resulting global trade war uh can harm our US financial system and particularly the primacy of the US dollar. Uh it has been called by foreign heads of state an exorbitant privilege that for decades we have had US dollar dominance in the world.
▶ 7:12:22that enables our consumers to buy cheaper goods abroad, to impose sanctions for our country, that is for our nation, uh against rogue states abroad with real teeth, uh and most importantly perhaps enables us to issue debt given the $ 1.9 trillion deficit we're running today. Enables us to issue debt with lower cost, at lower interest rates. Uh and this dollar dominance is very much threatened by recent uh I'll call them strategies. I think that's being very generous. this administration.
▶ 7:12:52Uh the Financial Post published a headline that said Trump is eroding US dollar dominance in world markets. Uh Reuters reported five consecutive weeks of outflows of US bonds. We have seen a 7% drop in the S&P 500 in the first 100 days. Simply the world is losing confidence in the United States as a market for investment and that is affecting demand for the dollar. Uh we are certainly losing in other ways as well.
▶ 7:13:20Today we see a report of a drop in GDP of.3% uh in this first quarter, the first drop since the depths of the pandemic. And by the way, we haven't even gotten started yet because tariffs just kicked in. And uh we've got a lot worse coming. Inflation numbers, of course, PC index just reported today up three and a half% above expectations.
▶ 7:13:46This perilous combination of recession and rising inflation, of course, brings back a word I haven't heard since I was 11 or 12 years old, stagflation. Uh, and like I said, we just got started. We have real concerns, I think the American people do, about uh what is happening in our financial system and the long-term impact of this trade policy. I think it's imperative for us to understand very clearly uh what the effect will be on the dollar for today and for the future.
▶ 7:14:16That I Gentleman yields. Is there further debate? Green from Texas. Gentleman from Texas. Mr. Green's recognized to strike the last word. Thank you, Mr. Chairman. And I also thank one of our new members, Representative Ricard Licardo, for offering this thoughtful amendment.
▶ 7:14:40There's been a lot of chaos caused by Trump's tariffs that I call the Trump tariff tax. It seems that the plans change every tweet, every tweet that Trump puts out. In fact, we've seen how his plans have repeatedly caused the markets to tank.
▶ 7:15:04There's little wonder why consumer confidence is plummeting to record slows at a time when the markets are very volatile. And do Republicans respond? And how do they respond?
▶ 7:15:18Their proposal is to cut 90% of funding that supports the Financial Stability Council and the Office of Financial Research to help us prevent a financial At the very least, I would hope they would let FSOC, the Financial Stability Oversight Council, and OFR review Trump's approach on tariffs to study and better understand their impact on our economy,
▶ 7:15:48the financial system, and the dollar as the global reserve currency. I urge members to support this important amendment, and I yield back. Gentlemen, gentleman from Texas yields back. Is there further debate? There's no further debate. The question now occurs on the gentle on the amendment offered by the gentleman from California. All those in favor, please say I. I. All those opposed, please say nay. Nay. In the opinion of the chair, the nays have it. The nays have.
▶ 7:16:19Amendment is not adopted. Request recorded vote, please. Uh, the gentleman from California requests a recorded vote. All those in favor of one, raise your hands. A sufficient number having raised their hand a recorded vote is ordered pursuant to subsection C5 of rule three of the committee rules further proceeding on this amendment are postponed. We will consider additional amendments to the amendment in the nature of a substitute. Who seeks recognition? Mr. Chair, I have an amendment at the desk.
▶ 7:16:46Gentlewoman from Oregon has an amendment at the desk. Will pause for it to be
▶ 7:17:17Thank you.
▶ 7:18:09An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Binham of Oregon designated as Binum 0008. This is her fourth amendment. Gentleman from Oklahoma. Mr. Chairman, I seek a point of order on this amendment. Point of order has been reserved. We'll now turn to the gentleoman from Oregon for five minutes to describe her amendment. Thank you, Mr. Chair.
▶ 7:18:34Everywhere I go across my district, I hear from my constituents, "The prices are too damn high. They're demanding and I'm demanding answers." The administration claims that tariffs will put pressure on other countries. But the truth is, American families are the ones that will feel it most. And at a time when people are already struggling to make ends meet, the decision to increase taxes on everyday items and raise our costs is absolutely unacceptable.
▶ 7:19:04I believe that we need to get the data on rising costs so we can take actions to make life more affordable. Mr. Chair, my amendment would require the Federal Reserve to examine the impacts tariffs have had on our families and will have on our businesses. Our constituents deserve transparency from their elected officials about why all of their bills are going up. We should be using every tool at our disposal to protect families from inflation. Thank you, Mr.
▶ 7:19:34Chair, and I urge the committee to adopt my amendment. I yield back. Gentlewoman yields back. Is there additional debate? Gentleman from Oklahoma. I'd like to vacate my request for a point of order, Mr. Chairman. Gentleman from Oklahoma. withdraws his point of order. Is there further debate? Uh Green from Texas. Mr. Chairman. Mr. Green, you're recognized to strike the last word. Thank you, Mr. Chairman.
▶ 7:20:00This is a harmless amendment in terms of cost. The board of governors regularly conducts studies. Uh this would be something that would be in line with what they do in the ordinary course of and this study.
▶ 7:20:19Um, not later than 70 days after the date of enactment of this act, the board shall submit to Congress a report, just a report from the board governors that describes the findings of the study required under subsection A. Now, this is just a study.
▶ 7:20:46We do need to know the impact of tariffs, especially tariffs that seem to fluctuate from day to day based upon the whims of a single person. I I can see no reason why we would not support Miss Bidham's amendment. It is very thoughtful. It is very timeful and it is very much needful. Thank you. I yield back. Gentleman yields back.
▶ 7:21:16Is there further debate? There's no further debate. The question now occurs on the amendment offered by the gentleoman from Oregon. All those in favor, please say I. I. All those opposed shall signify by saying nay. Nay. The naysay have it. Amendment is not adopted. Mr. Chair, I kindly request a recorded vote. The gentleoman requests a recorded vote. All those in favor of recorded vote, raise your hand. A sufficient number having raised their hand. A recorded vote is ordered pursuant to subsection C5 of rule three of the committee rules.
▶ 7:21:45Further proceeding on the amendment is postponed. Is there additional amendment to the amendment in the nature of the Is he ready? Gentleman from Texas. Unanimous consent request. Mr. Chairman, I have two requests.
▶ 7:22:04First, I ask unanimous consent to enter into the record letters from a massive list of consumer, labor, faith, lender, student, senior, service member, investor, former regulators, and other groups that strongly oppose the harmful cuts in this bill.
▶ 7:22:24This includes a letter from 349 groups across the country led by the National Consumer Law Center on behalf of lowincome clients. We also have letters of opposition from AARP, AFL CIO, CFA Institute, Council of Institutional Investors and former Regulators and Accounting Professionals.
▶ 7:22:51Second, I ask unanimous consent to enter into the record the technical assistance on this bill we have received from PCA OO in response to the staff's request. Without objection, both those unanimous consent requests will be adopted. Thank you, Mr. Chairman. Mr. Green yields back. Is there further debate? Mr. Chair, I have an addition an additional amendment at the desk. Uh, we need to dispense with this amendment first.
▶ 7:23:21I'm sorry. Uh, the gentleoman from Oregon's Gentleman's recognized. Thank you, Mr. Chair. I have an amendment at the desk.
▶ 7:23:48We'll pause for it to be distributed, right? That was uh
▶ 7:25:52Mr. Lucas, yes. I think we I think you might want to reserve a point of order. Mr. Chairman, I very intensely want to raise a point of order. I'm I'm pleased to hear that from the gentleman from Oklahoma. The point of order has been reserved. We'll ask the the clerk to report the amendment. An amendment to the amendment in the nature of a substitute to the committee print offered by Miss Binham of Oregon designated as 500201.
▶ 7:26:21Without objection, this amendment will be considered as read. And now we turn to the gentleoman from Oregon to explain her amendment. Mr. Chair, thank you. My amendment is about ensuring that the information Americans depend on for their retirement security is accurate and that our retirement savings are protected.
▶ 7:26:43So in plain terms, the Public Company Accounting Oversight Board, PCAOB, make sure that the books of the companies people invest in, including through their 401ks and pension plans, are examined rigorously and honestly, and that protects consumers from fraud and a lack of transparency. And so we have today a proposal to abolish the PCAOB as a standalone body and hand its duties to the SEC immediately.
▶ 7:27:13And my response is to pump the brakes until we are sure this won't harm investors. And according to the consumer watchdog Better Markets, this proposal is dangerous and misguided, especially in today's volatile market environment. When markets are changing quickly and investors are already anxious about their savings, now is not the time to weaken the protections that keep corporate executives honest.
▶ 7:27:42The last thing that a retiree or worker saving for retirement needs is a higher risk of losing their savings because Washington dismantled an oversight board without proper safeguards. It's also important to note that eliminating the board won't save taxpayers a dime. The board is funded by fees on audit firms and companies that it oversees, not by taxpayers.
▶ 7:28:08So the SEC would have to recreate that oversight capability almost entirely, likely hiring the same experts we currently have. So why create chaos that could put seniors hard-earned retirements at risk, especially when it doesn't even save any money?
▶ 7:28:27My amendment simply says, "Let's not transfer PCAOB's authority to the SEC until the SEC can certify that doing so won't increase the risks investors face. It's a common sense pause. I believe we owe it to American families and retirees to maintain high standards in auditing and transparency. Thank you, Mr. Chair, and I urge the committee to adopt my amendment." Gentlewoman yields back.
▶ 7:28:55Does the gentleman from Oklahoma insist on his point of order? I wish to withdraw my point of order, Mr. Chairman. Point of order is withdrawn. Is there further debate on the gentleoman from Oregon's amendment? Mr. Chairman, the gentleoman from Missouri. Mr. Chairman, I strike the last word. Gentleoman's recognized. Well, I appreciate my colleagues newfound passion for fiscal discipline. However, Mr.
▶ 7:29:18Chairman, the committee print before us today is a result of extensive member input to deliver on the promise to reign in out of control spending. The gentleoman's amendment has not been appropriately vetted and therefore I urge my colleagues to oppose this amendment. I yield back. The gentle the gentleoman yields back. Is there further debate on the gentleman from Oregon's amendment? Mr. Chair.
▶ 7:29:49Uh, Miss Miss Waters, you're recognized as you're recognized. All right. We have a an amendment by Miss Bham uh that that basically says when regulators have blind uh to financial risk, when fiduciaries cannot rely on financial disclosures and statements, then there are no inspectors holding auditors accountable working families will suffer. Uh we know this because Enron and Worldcom cook their books with the help of their auditor.
▶ 7:30:17uh other Anderson over 200 billion of shareholder value was lost. Additionally, Enron's workers retirement fund lost over two billion dollars. Corporate fraud hurts workers and retirees. Corporate fraud becomes more prevalent when their financial statements are not reviewed by independent auditors. Auditors become less independent or when the standards under which they operate a week are weekly enforced.
▶ 7:30:42By shutting down the PCAOB, we guarantee that auditors who are supposed to be independent of the companies they audit, will not be examined as frequently or as careful as we do now. And so this amendment says the SEC, the entity that would now be responsible for audit quality, would need to certify to Congress that they have everything in place to make sure that retires would not be subject to increased risk uh related to the PCAB shutdown before we could shut down uh the C
▶ 7:31:12uh PCO. I urge my colleagues to do the same. I support the amendment and I yield back the balance of my time. The gentleoman yields back. Is there further Mr. Chair, uh, the gentleman from California. Uh, thank you, Mr. Chair. I'd like to yield my time to Miss Miner. Uh, the gentleman yields to the gentleoman from Oregon. The general woman is recognized. Thank you, Mr. Chair. I have a few more things like another thing. Okay. Number one, did we actually have a hearing on PCAOB?
▶ 7:31:43I know I missed things, but I don't think I missed that. And the second thing I wanted to ask um or just put on the record, my dear colleague, I am new here, but I don't have newfound fiscal concerns. For eight years, I've been standing up to make sure that we as Democrats and we as Americans always invest in what our kids need for the future. For the next 20 to 50 years, we are passing things along to them.
▶ 7:32:14We should make sure that we're passing along fiscal oversight as well. Miss Wagner, Representative Wagner, Congresswoman Wagner, your quote says, "It's incumbent upon this committee to highlight the indispensable roles of the PCAOB in upholding transparency, accountability, and stability within our markets." I believe that this was your This was at the last
▶ 7:32:44hearing on this held on PCAOB. That was just on December 2023. The American people should be reminded that the PCAOB does not cost a dime to taxpayers. Its job is to ensure that large corporations do not lie in their financial disclosures. I yield back. General Gentlewoman yields back. Is there further debate?
▶ 7:33:10If there's no further debate, the question now occurs on the amendment offered by the gentleoman from Oregon. All those in favor, please say I. I. All those opposed, please say nay. Nay. In the opinion of the chair, the nays have it. The nays have. Amendment is not adopted. Gentlewoman vote, please. Gentlewoman has requested a recorded vote. All those in favor of recorded vote, raise your hands. A sufficient number having raised their hand, a recorded vote is ordered.
▶ 7:33:38Pursuant to subsection C5 of rule three of the committee rules, further proceedings on this amendment are postponed. Pursuant to the previous order, the chair declares the committee in recess subject to the call of the chair. We will reconvene at 6 pm. Thank Committee stands in recess.