2013-05-23T19:33:38-04:00 Rep. Edolphus Towns http://www.huffingtonpost.com/author/index.php?author=chairman-ed-towns Copyright 2008, HuffingtonPost.com, Inc. HuffingtonPost Blogger Feed for Rep. Edolphus Towns Good old fashioned elbow grease. tag:www.huffingtonpost.com,2011:/theblog//3.919340 2011-08-05T10:59:04-04:00 2011-10-05T05:12:01-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
As a Member of Congress, constituent feedback is extremely important to me. Not too long ago, a constituent of mine, a young attorney from Brooklyn, contacted my office to ask whether there were any loan forgiveness programs through the federal government available for private student loans. He claimed that the entire cost of his higher education -- both undergraduate and law school -- was covered by private loans. He said that though his passion was in public interest work, he now has to work at a big law firm to pay back all of his debt. My staff person asked him whether any of his loans were provided under the federal student loan program, and he said that they were not. He indicated he was ineligible because he went to private school for undergrad and law school.

Unfortunately for my constituent, he had been misinformed, likely by the student loan counselor at his school. Sadly, he is not alone. A recent study by the Project on Student Debt demonstrated that two-thirds of private student loan borrowers borrowed less than they could have in the federal Stafford loan program. Over one-fourth bypassed the federal student loan programs all together.

Federal loans are significantly more flexible, offer forgiveness programs and deferment options that many private loans do not, and are discharged in the event of death or severe disability. In fact, according to Student Lending Analytics, the average starting rates on private student loans is 9.5-10 percent. Federal loans have a low, fixed interest rate of 6.8 percent. Private loans generally have variable rates with no cap on the amount of interest that can be charged. Some borrowers pay rates similar to that of credit cards -- 18 percent or higher.

Young professionals in my district and across the nation are heavily burdened by student debt. At a time when our economy is in dire need of highly trained individuals, we need to do all that we can to encourage students to pursue degrees. The threat of debt carried throughout an individual's life and beyond should not be a hindrance.

As a result of the conversation with my constituent, I recently re-introduced the College Debt Swap Act, HR 2410. This bill would enable borrowers with high-cost private loans to use their remaining federal student loan eligibility to pay off or pay down the private student loan debt. By swapping expensive private loan debt into borrower-friendly, low-cost federal student loans, these individuals would be better able to manage their finances and repay their educational loans. For example, a working or middle class borrower with $8,000 in private loans would cut their average interest rate in half and save over $2,000 in interest payments over the life of a typical student loan.

Not only is this a win for students -- but it is also a win for taxpayers. In a time of financial difficulty, this bill relieves both students and taxpayers by shifting interest that would have gone to the private sector back to taxpayers. The non-partisan Congressional Budget Office has estimated that this bill will generate $10 billion over 2 years -- a substantial savings to students and the nation.]]> tag:www.huffingtonpost.com,2010:/theblog//3.665710 2010-07-30T16:46:06-04:00 2011-05-25T17:15:21-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
The BP oil spill was just the latest chapter in a long history of regulatory and ethical failures at the Interior Department and the Minerals Management Service (MMS). It is apparent that over the last decade, MMS essentially permitted the oil industry to police itself -- allowing BP and other companies in the industry to pick and choose which regulations they would follow. At the same time, the number of oil rigs in the Gulf of Mexico expanded dramatically and further into much deeper waters while the agency remained at approximately the same size.

After the oil spill, Secretary Salazar proposed a sweeping reorganization of MMS that would split the agency into three separate departments, The Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement and the Office of Natural Resources Revenue. To get a better understanding of the proposed changes, I convened a House Oversight and Government Reform Committee hearing recently where we were able to ask Interior Secretary Salazar and Michael Bromwich, the new director of the Bureau of Ocean Energy Management (BOEM), critical questions about the reorganization.

According to Secretary Salazar, the necessary checks and balances have been implemented to prevent unethical behavior within the three new entities. The ethics and enforcement standards for all employees were strengthened, and more rigorous safeguards were implemented to separate royalty collection from the safety and environmental oversight tasks.

We also discussed concerns related to conflicts of interest and revenue collections. Secretary Salazar explained that recommendations from the Department's Inspector General have been adopted and he highlighted the termination of the Royalty-in-Kind program that will reduce the likelihood of fraud or collusion within the oil and gas industry. He also stated that as the department evaluates new areas for oil and gas exploration, they will conduct a thorough environmental analysis and examine the potential safety and spill risks before approving plans to drill.

Michael Bromwich was chosen to lead BOEM because of his experience as an Inspector General at the Justice Department and his demonstrated ability to turn around failing institutions. After leaving the Justice Department he helped reform police departments around the country before working in private practice where he conducted several internal investigations for companies in a variety of industries. Mr. Bromwich expressed to the committee that he is determined to promptly respond to any allegations or evidence of misconduct or unethical behavior between BOEM employees and the oil and gas industry. He also made clear that he is determined to improve the bureau's ability to respond to issues and crises, like the Deepwater Horizon spill, as quickly as possible.

I am encouraged by Secretary Salazar's and Director Bromwich's dedication to put common sense reforms in place that will strengthen the oversight of the oil industry. Although the agency has much work to do, I remain optimistic reform will occur.
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Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
Recognizing that any economic recovery will be incomplete without a rebounding housing market, to its great credit, the Obama administration created the Home Affordable Modification Program, or "HAMP," to combat the rise of foreclosures. It is clear that while HAMP has made significant progress, there are serious issues that need to be addressed. Too many HAMP-eligible borrowers' mortgages still have not been converted to permanent modification status.

Losing your house is a traumatic event for families and it is a destabilizing event for our society. According to leading economists, 2.4 million homeowners are expected to lose their homes this year alone, and more than 3.1 million Americans are delinquent on their mortgages by 60 days or more. Recent studies have found that minority communities are facing foreclosure at a higher rate than whites, regardless of income. And, the metropolitan area around my home state, New York, has the second highest percentage of HAMP activity in the nation. I believe we have an obligation to extend a helping hand to responsible homeowners to help them get over the rough spots.

As Chairman of the House Committee on Oversight and Government Reform, I held a hearing in March to better understand the challenges facing HAMP. We heard directly from the Treasury Department, GAO, SIGTARP and others. Last week, I chaired a second hearing to probe deeper into the foreclosure crisis. I asked the country's largest mortgage banks participating in HAMP to come before my committee and explain their efforts to help people stay in their homes.

I wanted to hear from the banks after learning that the chief complaint from HAMP participants is the slow pace at which troubled mortgages are permanently modified. I also wanted to know why we are hearing reports that loan servicers are providing confusing and conflicting communication to borrowers; understand why fewer delinquent borrowers appear to be qualifying for HAMP; why borrowers, who obtain a trial modification, drop out of the program later; and why the majority of the mortgage modifications obtained under HAMP may not be successful.

During the hearing, the witnesses acknowledged that their institutions must do more to help homeowners. We also discussed their responsibility to ensure that minority borrowers are not targeted for foreclosure. I was pleased to learn that some of the participating banks are going beyond HAMP to modify troubled mortgages.

Some of the mortgage servicers who testified last week reported on their actions to save homes from foreclosure with principal forgiveness, second lien modifications, and other help for the unemployed. The witnesses stated that they have hired special staff to focus on HAMP modifications, and they are working to increase the level of service their customers deserve. These are good first steps, but I want to see more action. I also want to see broad participation throughout the mortgage loan industry.

If we are going to address the avalanche of nationwide foreclosures, the private sector must do their part help struggling homeowners. What we heard during the hearing was encouraging but we need to see more concrete action from the banks. I will continue to monitor this situation and look for ideas to make HAMP work so homeowners can stay in their homes.]]> tag:www.huffingtonpost.com,2010:/theblog//3.564127 2010-05-05T10:05:20-04:00 2011-05-25T16:20:27-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
After consecutive undercounts in 1990 and 2000, the Census Bureau took unprecedented action to raise awareness about the importance of completing and returning the 2010 census forms. As a result, the response rate to mailed questionnaires increased from 67 percent in 2000, to 72 percent of American households in 2010. When you consider that the Census Bureau estimates that each percentage increase in the response rate of the mailed forms saves $80 million, the five percent increase saved American taxpayers more than $400 million.

A new phase of that snapshot began on May 1st. As part of the non-response follow-up phase of the 2010 count, Census takers are now going door-to-door to contact the remaining 48 million households that did not mail back their Census form. Census takers will go door to door until July 10, 2010, making up to three visits and three phone calls at each household to complete the Census count.

To reach all these households, the Census Bureau hired 635,000 employees, providing a significant boost to our economy as it continues to recover from the economic downturn. All census takers were fingerprinted, underwent a full FBI background check and took an oath to maintain the privacy of the census data they collect. Every Census worker will have an official identification badge and may carry a black canvas bag with the Census Bureau logo.

Census takers will only ask questions that appear on the 2010 Census form. It is important that anyone contacted by an official census taker answers all the questions fully. They are prohibited by law from asking for any personal information and will not ask any questions pertaining to any outstanding legal proceedings or an individual's immigration status.

As Chairman of the House Committee on Oversight and Government Reform, one of the committees charged with oversight of the census, I am committed to ensuring an accurate count and protecting the integrity of the Census. Last week I worked with my colleagues on the Committee to remove any ambiguity from legislation passed earlier this year to bring an end to misleading fundraising mail designed to look like it is from the Census Bureau.

Working together we thought we put an end to this deceptive practice. Unfortunately, the foolishness of the RNC to move forward with yet another deceptive mail piece forced us to act again. The bipartisan legislation that passed the House unanimously will put an end to citizens receiving misleading fundraising mail designed to look like it is from the Census Bureau. Our legislation makes it clear that any use of the word 'Census' visible through the envelope will trigger a requirement to disclose the name and return address of the sender.

While several steps to a successful census count remain, I am encouraged by the Census Bureau's efforts to urge residents to complete and mail back their census forms. I hope that the Census Bureau will build upon this early success and complete the most accurate count in recent memory.
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Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
Mr. Powell was aware of the detention of the six people detained in Antigua from the date of their detention on September 7, 2009. Acting as a "representative" of the families of the detainees, Mr. Powell possessed neither the knowledge nor experience to positively influence any aspect of the criminal proceedings against the Brooklynites.

From September 7 to September 22, 2009, Mr. Powell's ineffective interference cost the diplomatic process critical resolution time and forced the detainees to endure a lengthy and uncompromising criminal trial. It was only after I intervened, with support from Congressman Jason Chaffetz (R-UT), that the government of Antigua and Barbuda agreed to release the detainees.

My colleague, Rep. Chaffetz, said, "The release of the six New Yorkers was solely the result of Rep. Towns' negotiations and hard work. Any assertion otherwise is false. Although Rep. Towns and I are from opposite sides of the aisle and often disagree, one area where we always find common ground is the truth. In this case, the truth lies with Rep. Towns, despite Mr. Powell's efforts to rewrite history."

The following timeline of events highlights my successful efforts to win the release of the detainees without the assistance of Kevin Powell in any respect:

September 22, 2009

• I learn of the detention of the six Brooklynites from a radio report.

• The parents of two detained siblings contact my District office in Flatlands to report the situation.

• I begin receiving updates on the detention from Brent Hardt, U.S. Ambassador to the Caribbean.

• I contact key Antiguan officials and the attorney for the detainees and begin the negotiation process.

September 23, 2009

• At a Brooklyn, NY, press conference attended by the families of the detainees, Kevin Powell applauds my efforts on the matter after only 24 hours of becoming involved.

• I continue to negotiate with Antiguan officials.

September 27, 2009

• I host a brunch at a local Brooklyn restaurant to update the families of the detainees on the progress of the negotiations. Kevin Powell is in attendance but offers no suggestions or other information on how to bring the detainees home. Again, he compliments how I have handled the matter.

September 28 through 30, 2009

• I continue the negotiation process with important government officials.

October 1, 2009

• A representative from my office arrives in Antigua and Barbuda. Face to face meetings are arranged with almost every individual who could impact a release of the detainees.

October 2, 2009

• I arrive in Antigua along with Rep. Jason Chaffetz (R-UT).

• We meet with Antiguan officials and engage in lengthy negotiations.

• We meet with the detainees to update them on the state of negotiations.

• Negotiation concludes.

October 3, 2009

• The lengthy criminal trial is suspended. Detainees all plead to lesser charges than those originally filed. Sentencing according to the negotiations are set for the following Monday.

• Kevin Powell arrives in Antigua in the evening hours, after the concluding plea deals.

October 5, 2009

• Kevin Powell attempts to offer character evidence at the sentencing phase.

• Mr. Powell proffers inaccurate testimony regarding his academic background while under examination by the sentencing judge. When asked about his academic qualifications, Powell testified under oath that he received a Bachelors' Degree from Rutgers University in 1988, majoring in Political Science with a minor in English. While Powell did attend Rutgers from 1984 to 1989, there is no record of his graduation from that institution, and therefore no record of the academic degree he now claims to have earned.

• All detainees are sentenced to pay fines.

• Kevin Powell returns to the United States immediately after the court proceeding.

• Detainees' fines are paid, and they are freed to return to the United States.

Under the circumstances presented by the Antigua detainees, it is not debatable that Mr. Powell's interference did more harm than good. His assertion that he negotiated the release of the detainees is fabricated and represents a serious character flaw for someone who aspires to high representative office in the Nation's Capital. For Mr. Powell to falsify his academic accomplishments, under oath, to gain favor in the eyes of a presiding judge and then to follow that by a claim of exclusive credit for the release of the six detainees, illustrates that deception and dishonesty are easy resorts for Mr. Powell if he believes that it will advance his cause.

Mr. Powell is unsuitable for public office now, and unless he undergoes drastic character improvement, will continue to be unsuitable for public office in the future.
]]> tag:www.huffingtonpost.com,2010:/theblog//3.544299 2010-04-20T10:43:20-04:00 2011-05-25T16:15:25-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
In the last three years alone, mail volume has fallen off a cliff, from 213 billion pieces in 2006 to 177 billion pieces in 2009, driving down Postal Service revenues at a time when their health care and pension obligations are increasing. In response to these problems, the Postal Service has cut jobs through attrition and put many cost saving measures into place to help address the issue. Unfortunately, a comprehensive strategy or business model that puts the Postal Service on a sustainable path has yet to be implemented.

To get to the bottom of this issue, the House Committee on Oversight and Government Reform held a hearing last week to examine the status of the Postal Service, and evaluate recent reports from the Government Accountability Office (GAO), the Postal Service Inspector General and the Postal Service on short and long-term strategies for the financial viability and stability of the USPS.

GAO's report on the postal business model, required by the 2006 postal reform law, determined that the USPS business model is unfeasible since it prohibits mail service from sufficiently reducing costs in response to declining mail volume and revenue. GAO recommended solutions that fell into three broad categories: reducing compensation and benefits costs, reducing some operations and network costs and generating revenues through product and pricing flexibility. It is worth noting that due to the financial crisis at the Postal Service, GAO issued this report a year earlier than was required by the 2006 postal reform law.

The committee also examined the USPS Inspector General's report entitled "The Postal Service's Share of CSRS Pension Responsibility." The IG argued that the USPS has overpaid into the Civil Service Retirement System by as much as $75 Billion. Employees who worked for both the old Post Office Department before 1971, and the independent Postal Service after 1971, receive pension payments that are funded by the federal government and the Postal Service.

If these findings are correct, it puts the changes to the USPS business model in a whole new light because the Postal Service would be able to fully fund its retiree health care obligations for the next 75 years if it was allowed to access the funds. Congress could then relieve the Postal Service of its requirement to pay an average of $5.5 billion into the health care trust fund for future retirees until 2016. Taken together, these two steps would put the Postal Service on much firmer financial footing.

Finally, the Committee examined a Postal Service report entitled "Ensuring a Viable Postal Service for America: An Action Plan for the Future," which explained strategies for the Postal Service to cope with its ongoing fiscal challenges. At the hearing, Postmaster General John Potter's testimony focused on the report that highly recommends cuts in service as a way to deal with the budget shortfalls. The report concluded that without bold, decisive and comprehensive action the Postal Service will face "continual financial peril." Furthermore, the report states that without further action to rein in costs by Congress and the USPS, the Postal Service will face a dramatic budget shortfall of $238 billion in the next decade.

Evaluating these reports is an important part of the thorough review needed to find solutions that will ensure the Postal Service's viability. We still need to get a firm handle on how much would be saved by eliminating a day of delivery and a better understanding of the impact of this proposal on customers and the postal workforce. Furthermore, we need a model for change that carefully balances the economic needs of the Postal Service with its core mission and ensures that economic and social issues are fully addressed in all future business and policy decisions.

Until we find solutions for the Postal Service and all those who rely on it, we will continue to look closely at this issue. The Committee is looking to bring together experts and interested parties in a policy forum later this year, and we will continue to work hand in hand with the Postal Service to protect retiree pensions and to put the Postal Service on a sustainable path.
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Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
I cast my vote for the bill because we could no longer wait to stem the rising tide of the uninsured and underinsured, implement important reforms to prevent insurers from discriminating against persons with pre-existing conditions and enact important measures to rein in costs.

Now, Americans with pre-existing conditions will no longer be denied coverage. No longer will insurance be too expensive for individuals and their families to afford. And now, because of the bill's provisions to close the Medicare Part D "donut hole," senior citizens will no longer have to split their pills in half or go without needed medicines because their drugs are too costly.

In my home district, New York's 10th Congressional District, access to affordable health insurance will make a tremendous difference in the lives of men and women who have been burdened by the escalating costs of health care. When the bill is enacted, 61,000 young adults in my district will be able obtain coverage on their parents' insurance plans until they turn 26 years of age. And for the 10,400 uninsured residents in my district with pre-existing conditions like cancer, heart disease, and diabetes, the bill's insurance reforms ensure that they will no longer be denied affordable coverage.

Importantly, we are doing all of this without adding one penny to the federal deficit. In fact, this bill will reduce our federal debt by $143 billion over the next ten years, and hundreds of billions more in the years thereafter.

Health insurance reform is an issue I have been committed to throughout my long congressional career. We came close to this day before, but this time, at long last, we will see this legislation signed into law. ]]> tag:www.huffingtonpost.com,2010:/theblog//3.505705 2010-03-19T10:19:11-04:00 2011-05-25T15:55:20-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
Annually, more than $500 billion of taxpayer money goes to Federal contractors, and that means keeping track of this money is a massive job for Federal agencies. Suspension and debarment is an effective tool to protect our government agencies, but only if it is implemented, and that does not appear to be happening (according to Inspectors General reports).

To bring attention to this issue, I held a hearing last year on the operation and use of the Excluded Parties List System. We found that some government agencies were ignoring federal regulations by awarding funds to individuals or businesses that had been suspended or debarred, and that agencies took far too long to suspend or debar, if they did it at all.

During our hearing this week we learned that one year later, it seems little has changed.

The Inspectors General for the Department of Transportation (DOT), the Department of Homeland Security (DHS) and U.S. Agency for International Development (USAID) all testified before the Committee that despite several instances of poor performance and even fraud by contractors, their agencies were either slow to implement the suspension or debarment process or failed to take action against these companies.

For example, the DOT IG found that, on average, it took DOT 300 days to reach a suspension decision and 415 days to process a debarment decision. Suspension and debarment decisions are supposed to be made within 45 days.

Similarly, at DHS, the IG found that DHS had only ten debarment cases in four years - an incredibly low number for an agency that spends an enormous percentage of its budget through contracting.

Unfortunately, the statistics at USAID told a similar story. In one instance, the IG found that USAID never initiated a suspension or debarment action against a company that submitted more than 100 false claims for reimbursement.

With billions of tax dollars on the line, it is far past time for agencies to suspend and debar bad actors and for agency managers to aggressively enforce this process. Failure to enforce the law against bad actors is unfair to responsible companies and unfair to taxpayers.

In closing, I had hoped banning corrupt contractors was an area where this committee could reach bipartisan agreement. I thought protecting taxpayer dollars was an area where Democrats and Republicans could find common ground. Unfortunately, the Republicans thought this hearing was a good place to renew their discredited partisan attacks on ACORN. The problems with the suspension and debarment process within the Federal government are far too important for these distractions.]]> tag:www.huffingtonpost.com,2010:/theblog//3.484533 2010-03-03T15:35:22-05:00 2011-05-25T15:45:22-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/ I repeatedly voiced my concerns about the risks of open network P2P software and encouraged Congress to act in order to prevent future incidents involving the unintentional distribution of sensitive and confidential information.

During the last year alone, highly sensitive information was discovered on P2P networks. News reports indicated that information about the electronic wiring for President Obama's "Marine One" helicopter was downloaded in Iran; that financial information belonging to Supreme Court Justice Stephen Breyer was leaked; and plans for President Obama's motorcade route and the location of the First Family's safe house were found on open P2P networks. These news reports prompted the Committee to reopen its investigation into the dangers posed by P2P software.

Our investigation and hearing into P2P networks showed that we could easily find copyrighted music and movies, Federal tax returns, medical records and other sensitive information on these open networks. We were also reminded of the major security and privacy risks associated with P2P file sharing on open networks. Then, just days after the hearing, sensitive information about military programs and our troops were obtained through P2P networks and supplied to the Committee.

In the weeks after our hearing, the Washington Post reported that confidential information related to ongoing House Ethics Committee investigations was inadvertently shared through P2P software. According to the Post, a Committee staff member working from home on their personal computer - which contained P2P software - downloaded confidential Committee documents therefore exposing information critical to congressional investigations. This security breach drew tremendous attention and highlighted the need for legislative action to regulate P2P software. Until now, we have allowed P2P software developers to voluntarily regulate themselves but they have failed to secure their file sharing programs. Therefore, I firmly believe Congress must act now to implement the proper safeguards to protect the American people.

This week the fight to reform P2P software will take a crucial step forward when the Committee I chair, the House Committee on Oversight and Government Reform, marks up H.R. 4098, the "Secure Federal File Sharing Act." The bill, which I introduced in November 2009, makes important progress toward banning the recreational use of P2P software on all Federal computers, computer systems and networks including those belonging to government contractors. The bill would also require the Office of Management and Budget (OMB) to approve legitimate uses of P2P software on Federal computers on a case-by-case basis and provide Congress annually a list of those agencies that are using P2P software and for what purposes.

While there is no doubt that if used legally to share files that are not copyrighted, P2P technology has great potential. However, we can no longer ignore the threat to sensitive and confidential Federal government information, our businesses and consumers that insecure peer-to-peer networks pose. According to a recent article in the Washington Post, many experts believe that the United States is more vulnerable to a cyberattack than any other nation in the world and that the risk is growing daily. H.R. 4098 will protect the American people from a future attack and help prevent the types of inadvertent security breaches that have become all too common.
]]> tag:www.huffingtonpost.com,2009:/theblog//3.400949 2009-12-22T15:26:25-05:00 2011-05-25T15:00:22-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
The Democratic Congress has been focused on turning around our economy, and acted on our commitment by enacting several measures that have already created or saved more than a million jobs this year. We moved quickly at the beginning of 2009 to pass the American Recovery and Reinvestment Act, or "Recovery Act," which has helped keep cops on the beat and teachers in classrooms, while making critical investments in green technology and our nation's infrastructure.

The Recovery Act has also helped ease the recession's burden by extending unemployment benefits and increasing COBRA assistance to millions of people without health insurance.

To help turn our economy around, I worked with the Obama administration to ensure that Recovery Act funds benefit economically distressed areas. I also helped bring Department of Transportation officials to my home district in Brooklyn, NY, to help small business owners and government contractors understand how to access Recovery Act funds and meet the reporting requirements.

Another important part of speeding up our recovery is the Jobs for Main Street Act, which redirects repaid funds from the Troubled Asset Relief Program (TARP) that helped to stabilize our financial sector, and passed the House last week. During a recent interview on CNBC, I made it clear that I believed Congress needed to use repaid bailout funds to create a jobs program that helps those Americans hardest hit by the recession.

The bill invests $48 billion in infrastructure spending to rebuild roads and bridges, modernize public buildings and mass transit and clean our water and air. Moreover, the legislation includes $27 billion to save or create 250,000 education jobs over the next two years, and helps retain law enforcement officers and firefighters. The bill also directs $500 million to create 250,000 summer jobs for low-income kids and includes $750 million for job training programs at community colleges, a third of which is targeted at low-income trainees.

H.R. 2847 also includes several key initiatives to help America's small businesses. The bill expands the federal guarantee for banks that lend to small businesses, and eliminates fees on Small Business Administration (SBA) loans. We all know that small businesses are the engines of job growth in our economy, but a lack of available credit has prevented small businesses from creating jobs. By making small business loans more accessible and affordable, we can spur the creation of thousands of jobs on main street that will continue to fuel our economic recovery.

In addition to supporting job creation legislation, I have been working on other job creation-related initiatives. I worked with my colleagues in the Congressional Black Caucus (CBC) recently to ensure that the "Jobs for Main Street Act" does not raise taxes on hard working Americans or place a greater burden on our children. The CBC also urged President Obama to make decreasing unemployment and increasing job creation the nation's number one priority.

As the holiday season approaches, I am reminded of all the families struggling to put food on the table and to make ends meet. We still have a way to go until job opportunities are abundant, but my colleagues in Congress and I remain committed to boosting our economy and create jobs, especially in the communities hardest hit by the recession.]]> tag:www.huffingtonpost.com,2009:/theblog//3.393356 2009-12-15T18:18:17-05:00 2011-05-25T14:55:21-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
Like the executives from the aforementioned three banks, I was scheduled to fly from LaGuardia Airport to Washington, DC yesterday. Once I arrived at the airport, I learned that flights to National airport were grounded due to dense fog that blanketed the northeastern seaboard. Instead of giving up my travel plans, I drove to Penn Station, booked a ticket on Amtrak and arrived in Washington a few hours later than I initially planned. With a little effort and quick thinking, I made it to Washington with ease (despite the fog).

That got me thinking. After I read Andrew Ross Sorkin's DealBook column in today's New York Times on the president's meeting, I thought that if those executives really wanted to make it to Washington as they claimed, they could have taken the train just as I did.

It is inexcusable for these bankers to have missed the meeting. I am pretty sure President Obama would have postponed the meeting a few hours to accommodate the executives in appreciation of their last minute effort to rearrange their travel plans. Then again, common sense should have told these gentlemen that when the President of the United States summons you to the White House, you check the weather ahead of time and plan accordingly.

The behavior of these CEOs is just another example of the financial industry's careless attitude and actions toward the government, which bailed them out - and the American people, who paid for their individual bailouts. But the bankers continue to act as if they bear no responsibility for the economic collapse and have no obligation to change the way they do business. The banks must realize that the American people are angry and they see right through the bank executives' apologies for missing the president's important meeting.

President Obama was right to convene a meeting with the bank executives and remind them that just as the American people came to their rescue, they need to be part of the American people's economic recovery. A lack of available credit provided by banks has prevented small businesses - the engines that help drive our economic recovery - from creating jobs and putting money in the pockets of men and women across the country.

The next time President Obama calls on the bankers to meet him in Washington, I hope they will take the time to check the weather. It would be inexcusable for them to get caught in the fog.]]> tag:www.huffingtonpost.com,2009:/theblog//3.380737 2009-12-04T16:40:38-05:00 2011-05-25T14:50:26-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
I chaired a House Oversight and Government Reform Committee hearing this week to examine what progress has been made to repair and improve the region's health care infrastructure and highlight the challenges that still remain.

Many important hospitals and outpatient clinics were severely damaged or destroyed. As a result, many of the region's residents have struggled to obtain health care. The city's low-income population often relied on emergency rooms and outpatient clinics as their source of primary care. Charity Hospital, which before Katrina was the major public hospital for the working poor and uninsured, was essentially destroyed and remains shuttered today.

Those facilities that remained open after Katrina, particularly those willing to help the uninsured and poor, had limited capacity. While a few organizations were eventually able to open some clinics, major health care delivery gaps remained for months, and even years, after the storm.

To help address the lack of health care services after the storm, Congress allocated $100 million to the Department of Health and Human Services in July 2007, to establish the "Primary Care Access and Stabilization Grant." The program provided Louisiana health services with funding to restore and expand critical primary care services to the region, without regard for a patient's ability to pay. The federal, state and local officials who testified before the Committee stressed that the grant program stepped in to fill the huge void left by the destruction of Charity hospital.

The good news is that currently almost 90 clinics are utilizing funds from the grant and are serving as the backbone of health care services in New Orleans. The clinics help reduce costly reliance on emergency room care and provide critical services to patients who are uninsured, underinsured or covered by Medicaid. Collectively, the clinics are providing care for more than 160,000 individuals in the region. As of June 22, 2009, more than $80 million of the $100 million grant had been distributed - with the funding set to expire on September 30, 2010.

The New Orleans region faces an uncertain future with no clear plans to sustain these clinics financially, and breaking ground on a replacement for Charity Hospital seems like a distant reality at this point.

The witness testimony was abundantly clear that we need act immediately to solve the critical problems facing the health care infrastructure in New Orleans. Our brothers and sisters in the region suffered greatly four years ago. I believe that we must recommit to ensuring that these health care clinics are fully funded, while at the same time, finding the resources needed to build a new public hospital.]]> tag:www.huffingtonpost.com,2009:/theblog//3.335655 2009-10-27T14:06:50-04:00 2011-05-25T14:30:27-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
Not long after the last transfer of $85 million in TARP funds to this company, Federal Reserve officials learned that AIG planned to distribute a total of $1.75 billion in bonuses and other extraordinary compensation throughout the company.

Since that time, the American people have been eager to understand how the government failed to prevent these bonus payments from going out the door -- payments that were paid out with their taxpayer dollars. The public also wants to know what their government is doing to prevent an episode like this from happening in the future.

Recently, I held a House Oversight and Government Reform Committee hearing to better understand why there was not diligent oversight of pay practices at AIG after the company received a multi-billion dollar government funded bailout. Our sole witness for the hearing was the government's TARP watchdog, Neil Barofsky, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The SIGTARP completed an audit this month that examined compensation practices at companies that received bailout money, including AIG, and his testimony provided us with an explanation of the findings of his report.

We first learned from the SIGTARP that AIG was not always a company that awarded its executives lavish bonuses. The SIGTARP's audit found that AIG's compensation used to be weighted toward long-term incentives that were payable only at retirement. In other words, they used the classic "golden handcuffs." But in 2007, when losses began to mount, AIG's new management decided to "update" their compensation plans. The golden handcuffs were replaced by golden envelopes. The era of instant gratification had arrived at AIG. In essence, long-term incentives were rejected in favor of risky, short-term gains.

We also learned from Mr. Barofsky's report that the Treasury Department, under former Treasury Secretary Henry Paulson, abdicated its responsibility to oversee the executive compensation plans at AIG. In fact, Treasury made no independent effort to evaluate the breadth of AIG's compensation obligations before funneling taxpayer dollars to the company. Not until March 19, 2009, when Secretary Geithner announced a plan to deal with future payments of executive compensation at AIG, did Treasury finally begin to oversee the company's compensation practices. Therefore, much of the public outcry this spring could have been avoided had Treasury evaluated the compensation packages at AIG from the moment former Secretary Paulson began allocating TARP funds.

Widespread outrage at this situation among taxpayers and policymakers has resulted in a number of actions designed by the Obama administration to rein in executive compensation, particularly at firms receiving TARP funds. On June 10, 2009, the Treasury Department issued its Interim Final Rule on TARP Standards for Compensation and Corporate Governance. The most important part of the rule was the creation of the Office of the Special Master for TARP Executive Compensation. Treasury appointed Kenneth Feinberg as Special Master, who is serving pro bono.

Mr. Feinberg already has his hands full. According to the SIGTARP, AIG executives still believe that $200 million dollars in bonuses -- or so-called retention payments -- should be paid to them without regard to the company's performance and without repaying the government in full. News reports indicate that Mr. Feinberg is having trouble convincing AIG to reduce those payments. This does not surprise me.

I look forward to hearing directly from Mr. Feinberg Wednesday, when he will testify before our Committee about his review of executive compensation at TARP recipient companies, including his decision last week to slash compensation for the top 25 executives at the seven largest bailout companies (AIG, Bank of America, Citigroup, Chrysler, Chrysler Financial, General Motors and GMAC) that have not repaid the taxpayers. ]]> tag:www.huffingtonpost.com,2009:/theblog//3.325704 2009-10-19T10:01:10-04:00 2011-05-25T14:25:20-04:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
The main mission of credit rating agencies is to tell investors the risk level of bonds and other debt securities. Pension plans, banks, insurance companies, and other investors depend on these ratings to help them decide where to invest their funds.

Unfortunately, for the past decade, the credit rating system has not worked well at all. Last year, my committee learned that ratings did not capture the true risk of many deals, because the rating agencies were more concerned with their own bottom lines. In turn, millions of people have had their pensions wiped out, seen their life savings evaporate or lost their homes due to foreclosure.

A year after the collapse of Lehman Brothers and the massive government bailout of AIG, Bank of America, and others, it looks like not much has changed. During the hearing we heard compelling testimony from two senior employees at Moody's who described a culture of tainted ratings and lax regulatory compliance at the agency which helped contribute to the financial collapse.

Eric Kolchinsky, a former Managing Director in charge of rating residential mortgage backed securities at Moody's, testified that conflicts of interest, inadequate methodologies and lack of independence for the Credit Policy and Compliance groups significantly contributed to the shoddy performance of Moody's ratings. According to Mr. Kolchinsky, Moody's has adopted "new" methods that actually maintain the status quo and continue to undermine the reliability of their ratings.

We also heard testimony from Scott McCleskey, the former head of compliance at Moody's, who stated that the firm failed to take the problems within their municipal securities division seriously until after the credit crisis. Mr. McCleskey also testified that when he raised the issue with his superiors at Moody's, they repeatedly ignored his recommendations, and in some cases they "responded" by reducing his staff.

In addition, both witnesses described a workplace where the very act of putting things in writing was frowned upon. Can you imagine working at a place where the very act of writing a memo or sending an email is suspect?

Throughout the investigation we learned that the culture of secrecy extended to companies outside Moody's as well. Moody's told us they retained an outside law firm, Kramer, Levin, to investigate Mr. Kolchinsky's allegations of illegal conduct. But on the day of our hearing, we learned that this outside firm was given only oral instructions for this review. Moody's says no written statement of work was prepared and there was no contract specifying the work to be done -- and, this outside firm is not expected to produce any written report of its findings and has no schedule for completion.

Based on the witness testimony and the Committee investigation, it is clear that credit ratings agencies must shed the culture of secrecy and shady practices that is deep-rooted in their operations. The Moody's business model of "Leave No Fingerprints" might be alright if the credit rating agencies had not played a starring role in the collapse of the financial system. For that reason, this cannot continue. It is very clear to me at this point that effective legislation, which the House and Senate are currently working on, is needed, along with effective oversight. If not, the testimony we heard will just be the opening chapter of what promises to be a sordid story.
]]> tag:www.huffingtonpost.com,2009:/theblog//3.311588 2009-10-06T16:55:22-04:00 2011-11-17T09:02:45-05:00

Rep. Edolphus Towns http://www.huffingtonpost.com/chairman-ed-towns/
The heads of the Centers for Disease Control and Prevention (CDC) and the National Institute of Allergy and Infectious Diseases, along with the Deputy Commissioner of the Food and Drug Administration, testified before the committee I chair, the House Oversight and Government Reform Committee, about the Administration's vaccine plan and their diagnosis of the anticipated severity of the H1N1 virus.

Dr. Thomas Frieden, the CDC Director testified that his agency is actively preparing for the ongoing flu pandemic, and in addition, the agency developed a voluntary national vaccination campaign to protect the American people from the virus. Dr. Frieden stressed that the H1N1 vaccination, which is the best means to protect against this flu, has been approved and is in production. He also noted that the CDC would work extensively with state and local health officials to ensure that adequate resources are available.

Dr. Anthony Fauci, the Director of the National Institute for Allergy and Infections Diseases, testified that we are still in the early stages of understanding the H1N1 virus, and that the virus may change in the future. However, he pointed out that the tireless efforts of the National Institute of Health (NIH) and Department of Health and Human Services (HHS) are giving researchers and scientists a significant leg up in responding to a future pandemic, however it unfolds, and that the country will be ready in the event of an outbreak.

Highlighting the FDA's role in addressing the nation's pandemic flu preparedness, Dr. Jesse Goodman, the Acting Chief Scientist and Deputy Commissioner for Scientific and Medical Programs, asserted that the FDA is prepared to work hand in hand with HHS and CDC to mobilize the emergency public health response in the event of an outbreak. Dr. Goodman also pointed out that while challenges remain, the initial results of the H1N1 vaccine development have been "gratifying."

We still have challenges to overcome before our nation is fully prepared for a flu pandemic. The Administration must be prepared and ready to work with our state and local governments to develop a comprehensive strategy to administer enough vaccines to those with the greatest risk of exposure. No matter how much we try, the current - or an even more virulent - flu strain might eventually spread to large portions of the population. Because of this, it is critical that we keep focused on steps to keep key public health agencies ready to respond.

While we are hopeful for a mild flu season, I encourage all Americans to be vigilant and take the appropriate precautionary measures to avoid contracting or spreading the flu. At the same time, I will continue to monitor the Administration's vaccination plans because ensuring the well-being of the American people is my greatest responsibility.
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