Source: United States Senator for West Virginia Shelley Moore Capito
WASHINGTON, D.C. — U.S. Senator Shelley Moore Capito (R-W.Va.), Ranking Member of the Senate Environment and Public Works (EPW) Committee, and member of the Senate Appropriations Committee, today announced funding for 16 different local infrastructure projects totaling $20,868,000 through the U.S. Army Corps of Engineers (USACE).
“Through my roles on both the EPW and Appropriations committees, I work closely with the U.S. Army Corps of Engineers to determine where we need to improve our infrastructure to best serve residents, and today is a significant example of that work coming to fruition. I am thrilled that so many communities across West Virginia will benefit from projects now able to move forward thanks to this funding. Our local officials deserve support from their federal partners in advancing key priorities like water extension projects and wastewater upgrades, and these dollars will provide a huge boost for our communities,” Ranking Member Capito said.
Individual awards and details listed below:
Greenbrier County Phase II Waterline Extension Project, Greenbrier County: $1,000,000
Madams Creek Waterline Extension Project, Summers County: $1,100,000
Sarvis Fork Water Extension Project, Jackson County: $990,000
Statts Mills Road Water Extension Project, Jackson County: $1,300,000
City of Spencer Water Distribution System Improvements Project, City of Spencer, Roane County: $1,250,000
Mt Zion Water System Improvements Project, Calhoun County: $1,250,000
Town of Wayne Wastewater Treatment Plant Project, Town of Wayne, Wayne County: $1,100,000
Davy Water Treatment Plant Upgrade Project, Town of Davy, McDowell County: $1,000,000
Reedy Middle Fork Water Extension Project, Town of Reedy, Roane County: $1,000,000
Purgitsville Water Extension Phase 3 Project, Hampshire County: $1,000,000
City of Pennsboro Sanitary Sewer Improvements Project Phase I, City of Pennsboro, Ritchie County: $1,780,000
Town of Newburg Wastewater System Improvements Project, Town of Newburg, Preston County: $1,650,000
Town of West Union Wastewater System Improvements Project, Town of West Union, Dodridge County: $1,900,000
Pond Creek Water Extension Project, Wood County: $1,348,000
City of Kingwood Wastewater System Improvements Project, City of Kingwood Sanitary Sewer Works, Preston County: $1,600,000
Town of Carpendale Sanitary Sewer Project, Town of Carpendale, Mineral County: $1,600,000
Background on Capito’s efforts to secure funding:
As Ranking Member of the EPW Committee, Senator Capito included authorization increases for both the 340 and 571 programs in the bipartisan 2022 Water Resources Development Act that was signed into law in December 2022. As a member of the Senate Appropriations Committee, Senator Capito secured $10 million in FY 2023 Congressionally Directed Spending for each of the two programs – providing funds for the projects listed above.
Source: United States Senator for West Virginia Shelley Moore Capito
WASHINGTON, D.C. – Recently, U.S. Senator Shelley Moore Capito (R-W.Va.), Ranking Member of the Senate Environment and Public Works (EPW) Committee, and John Barrasso (R-Wyo.), Ranking Member of the Senate Energy and Natural Resources (ENR) Committee, introduced two pieces of legislation to substantively reform the nation’s broken permitting and environmental review processes.
Since introduction, Ranking Member Capito’s Revitalizing the Economy by Simplifying Timelines and Assuring Regulatory Transparency (RESTART) Act, which covers key reforms in EPW’s jurisdiction to streamline the agency review process with enforceable timelines, implement time limits to prevent endless legal challenges, and modernize current laws while maintaining environmental protections, has received support from a wide range of industry stakeholders, businesses organizations, and environment and energy advocates.
Here’s What They Are Saying:
West Virginia Chamber of Commerce President, Steve Roberts: “The United States is blessed with vast natural resources that can guarantee energy security and independence for our country and our allies, but all too often we see pipelines and manufacturing facilities be held up for years while permits are challenged by opposing groups. [The RESTART Act] makes important changes to our laws to ensure that our environment is being protected but that qualified projects can quickly move forward…Senator Capito has always been a leader in bringing together senators from both parties in a bi-partisan fashion and this bill promises to be one of those issues where real progress can be made to improve the lives of our citizens.”
West Virginia Manufacturers Association (WVMA) President, Rebecca R. McPhail: “The RESTART Act will help to reduce unnecessary delays and costs associated with the permitting process, while still ensuring that projects adhere to important environmental and safety standards. We also appreciate the focus of the RESTART Act on ensuring greater collaboration between federal and state agencies, and addresses meaningful enforcement mechanisms, and making changes to NEPA, the Endangered Species Act, and the Clean Water Act in order to overcome delays in current processes. The RESTART Act recognizes that a healthy environment and economy need not be mutually exclusive. Again, the WVMA strongly supports the RESTART Act, and I urge you to continue to champion this important legislation. The reforms you have proposed will help to revitalize America’s infrastructure, create jobs, and boost economic growth.”
Gas and Oil Association of West Virginia (GO-WV) Executive Director, Charlie Burd: “We believe the Revitalizing the Economy by Simplifying Timelines and Assuring Regulatory Transparency (RESTART) Act includes smart policies capable of overcoming our nation’s historic lag in building any critical infrastructure, including pipelines, power plants, and export facilities to share our energy abundance domestically and with the world…The time to build is now. Let’s use the RESTART Act to build world-class, American-made infrastructure once again.”
West Virginia Coal Association President, Chris Hamilton: “The West Virginia Coal Association (WVCA) fully supports the reforms embodied in the RESTART and SPUR Acts. The permitting reforms contained in the legislation addresses serious and chronic issues that have plagued the efficient permitting of coal projects for decades, undermining investment in West Virginia and furthering the self-inflicted energy crisis that has increased electricity and manufacturing costs across the country…WVCA and its members believe the RESTART and SPUR Acts will assure our ability to not only provide good paying jobs and tax revenues to sustain West Virginia communities but also secure the nation’s energy supply and industrial manufacturing capability.”
U.S. Chamber of Commerce Senior Vice President of Policy, Marty Durbin: “We applaud Senators Capito and Barrasso for introducing legislation to provide meaningful reforms to our broken permitting process. Their bills would bring greater predictability, efficiency, and transparency to the process by establishing clear timelines and codifying important reforms. Reforms included in these bills would help us build robust supply chains for critical minerals used in everything from electric vehicles to cell phones, ensure adequate supplies of natural gas to support the on-going energy transition, and build better transportation infrastructure to move people and goods more efficiently. This is another important step to propel momentum toward Congress enacting permitting reform this year, and we look forward to working with both senators.”
National Association of Manufacturers (NAM) President, Jay Timmons: “On behalf of the 13 million men and women who make things in America, the National Association of Manufacturers commends [Ranking Members Capito and Barrasso] for introducing the RESTART and SPUR Acts, commonsense bills that reform our out-of-date permitting laws and procedures. America’s success and leadership in the world depend on a strong, competitive manufacturing industry, and permitting reform is essential for manufacturers in the U.S. to compete in a global economy… The RESTART and SPUR Acts make progress on many shared priorities that were discussed at last week’s Environment and Public Works Committee hearing. Manufacturers are particularly interested in consolidating the permitting process with a lead agency and enacting enforceable deadlines… The NAM stands ready to work with you and your colleagues to advance this legislation and other policies that strengthen our industry’s ability to compete.”
American Petroleum Institute (API) President and CEO, Mike Sommers: “Modernizing our permitting process will speed up approvals, create American jobs, and enable the faster movement of energy where it is needed most. Thanks to new bills from Senators Barrasso and Capito we are another step closer to bipartisan permitting reform, and we will continue to work with lawmakers to achieve durable reform for the benefit of all Americans.”
Associated General Contractors (AGC) of America Vice President of Government Relations, Jimmy Christianson: “The RESTART Act will provide regulatory certainty for the construction industry while ensuring construction projects are not unnecessarily delayed. Specifically, it will deter unwarranted litigation and mitigate permitting review delays at federal agencies. Finally, it will clearly define the waters of the United States that determines which waters are regulated by the federal government and which fall under the jurisdiction of state and local governments.”
National Mining Association (NMA) President & CEO, Rich Nolan: “Senators Barrasso and Capito have long been champions for commonsense solutions to fix the broken permitting and environmental review processes that have hampered access to our natural resources and imperiled our supply chains; this week they have introduced two pieces of legislation that can meaningfully improve both and place the U.S. firmly back on competitive footing. Over the past year, we have seen Congress and the Biden administration signal support for further development of stable mineral supply chains on which our national security, economy and energy future rely, through tax incentives, loan programs and grants. But if we can’t get a mine permitted, the money is irrelevant. Serious mine permitting reforms are sorely needed, and we applaud Sens. Barrasso and Capito for leading the way.”
National Stone, Sand & Gravel Association (NSSGA) Vice President, Government & Regulatory Affairs, Michele Stanley: “We profoundly thank Ranking Member Shelley Moore Capito (WV) and members of the Senate Environment and Public Works Committee for advancing the RESTART Act. This legislation includes critical reforms that will give aggregates producers the certainty they need to access the material needed to build. Specifically, the legislation provides a long sought solution to decades of confusion related to the definition of Waters of the United States (WOTUS). The RESTART Act also takes essential steps to streamline the project permitting timeline and reduces activist litigation opportunities that have stalled necessary infrastructure improvements for decades. In addition to other reforms included in the legislation, the RESTART Act provides commonsense permitting and project review reforms to build in America, lower prices, and protect the environment. We also praise the leadership of Ranking Member John Barrasso (WY) and members of the Energy and Natural Resources Committee for introducing the SPUR Act. This legislation will open new energy markets, unleashing American energy independence.”
National Ocean Industries Association (NOIA) President, Erik Milito: “NOIA thanks Senators Barrasso and Capito for pursuing robust legislative certainty for American offshore energy production. The U.S. Gulf of Mexico is an enduring source of affordable, reliable, and environmentally responsible energy. These bills take critical steps to codify an annual minimum of two Gulf lease sales and tighten key permitting timelines, and would be a significant step toward bolstering energy security for Americans at home and for our allies abroad. Supporting Gulf of Mexico energy production and our energy workers throughout the country is in our national interest and should always be a bipartisan priority.”
Waters Advocacy Coalition Chair, Courtney Briggs: “We applaud Sen. Shelley Moore Capito for introducing a WOTUS solution to deliver certainty and predictability long awaited by American farmers, builders, manufacturers, energy producers and small businesses. Cementing a transparent, workable definition of waters of the United States into law will finally put an end to the decades long debate over which waters are federally regulated under the Clean Water Act. While promoting clean water, Sen. Capito’s legislative proposal will also free small businesses across the nation to create jobs, grow the economy and produce high-quality goods and services with confidence.”
American Farm Bureau Federation Vice President of Public Policy, Sam Kieffer: “The American Farm Bureau Federation appreciates Sen. Capito’s efforts with the RESTART Act to address the overreach of federal agencies. Providing clarity to the Clean Water Act, National Environmental Policy Act and the Endangered Species Act is a step toward bringing balance to unfair regulations that hinder the efforts of farmers and ranchers as they work to put food on the table for America’s families.”
America First Policy Institute Chair of the Center for American Freedom and former Secretary of the Interior, David Bernhardt, “Senator Barrasso and Senator Capito’s common sense legislation would help reform the broken bureaucratic permitting process that is stifling American innovation, businesses, and consumers. Extreme environmental activists within the leviathan bureaucracy are holding the American economy hostage by killing off critical infrastructure projects with an endless sea of litigation and job-killing red tape. This vital legislation would help to unleash American energy and lower prices for hardworking Americans who are being crushed by the Biden Administration’s war on American energy.”
The Fertilizer Institute President & CEO, Corey Rosenbusch: “The fertilizer industry has long recognized the importance of streamlining the NEPA permitting process and other inefficient and unclear regulatory programs, including a more clearly defined WOTUS definition and challenges with the New Source Review program. S. 1449 (RESTART Act) is a step in the right direction to provide the clarity necessary for industry to thrive within clearly defined rules and processes…S. 1449 will help expand domestic fertilizer production so that the fertilizer industry can continue producing safe and efficient crop nutrient products in an environmentally sustainable way to feed a growing global population.”
For bill text of the RESTART Act, click here. For a section by section of the RESTART Act, click here. For a one pager on the RESTART Act, click here.
For bill text of the SPUR Act, click here. For a section by section of the SPUR Act, click here. For a one pager of the SPUR Act, click here.
Anti-Choice Politicians In Congress Continue to Threaten Servicemembers’ Access To Reproductive Health Care
WASHINGTON, DC – Today, U.S. Senators Jacky Rosen and Catherine Cortez Masto helped introduce the Protecting Service Members and Military Families’ Access to Health Care Act, which would codify the U.S. Department of Defense policy to ensure servicemembers and their families can access reproductive health care, including abortion services, regardless of the state in which they are stationed. The introduction of the bill comes after Senators Rosen and Cortez Masto joined their colleagues in sending a letter to Secretary of Defense Lloyd Austin underscoring the need to provide servicemembers and their families travel support and paid leave to access reproductive health care services in pro-choice states.
“Our servicemembers are stationed all across the United States, including in anti-choice states where their rights to access reproductive care is restricted” said Senator Rosen. “This legislation that I’m helping introduce would ensure that our military’s right to access reproductive care is protected regardless of where they serve.”
“As far-right extremists continue their attack on a woman’s right to choose, including the reproductive rights of those serving in our military—I’m working to ensure our service members have access to the health care they need,” said Senator Cortez Masto. “Our legislation will make sure our service members and their families can access reproductive health care wherever they are stationed. I won’t stop fighting to protect abortion rights in Nevada and across our country.”
Senators Rosen and Cortez Masto continue to lead the fight for women’s reproductive rights as states across the country take alarming steps to restrict access to care. Last month, in speeches on the Senate floor, Senators Rosen and Cortez Masto successfully called on their colleagues to protect access to abortion care for veterans and their eligible dependents. They also helped introduce the Women’s Health Protection Act to enshrine Roe v. Wade in federal law and protect millions of women’s access to reproductive health care. Last Congress, Senator Rosen joined Senator Cortez Masto’s Freedom to Travel for Health Care Act, legislation that would ensure legal protections for women traveling across state lines to receive reproductive care.
Source: United States Senator for Connecticut – Chris Murphy
WASHINGTON—U.S. Senator Chris Murphy (D-Conn.), Chairman of the U.S. Senate Foreign Relations Subcommittee on Near East, South Asia, Central Asia and Counterterrorism, on Tuesday chaired a nominations hearing for U.S. ambassadors to Oman, Lebanon, Ethiopia, Sierra Leone, and Uganda. During the hearing, Murphy discussed anti-LGBTQ legislation in Uganda, the Tigray War, and U.S. policy on Lebanon.
Murphy highlighted the importance of the United States continuing to prioritize the issue of Uganda’s attacks on the LGBTQ community in a question to William Popp, nominee for U.S. Ambassador to Uganda: “The parliament passed legislation in March that goes further than making same sex relations punishable by life in prison, which is an effect of the 2014 law. It now creates a new offense of aggravated homosexuality that is punishable by death. And by making the promotion of homosexuality punishable by up to 20 years in prison. It would criminalize failing to report knowledge of individuals engaged in homosexual conduct… I don’t think it’s enough to raise the general concern about fair treatment of individuals, regardless of sexual orientation, race, ethnicity inside Uganda. I think you’ve got to pay special attention to this just abnormally vitriolic and dangerous attack on LGBTQ individuals.”
In a question to Lisa Johnson, nominee for U.S. Ambassador to Lebanon, Murphy highlighted the effectiveness of the Lebanese Armed Forces: “Every time I go [to Lebanon] I’m more and more impressed at the capability of the armed forces and their willingness, often at great risk to themselves, to put themselves in between the factions inside that country that often are very close to coming to significant long term conflict. They have stood up for protesters, protected the right of people to provide their views, and they also are really one of the few things that stands in between Hezbollah having even more control of the security environment than they do today.”
On countering Hezbollah’s propaganda capabilities, Murphy said: “[The United States] put on the table this very innovative program to try to get gas delivered to Lebanon from Egypt. And this was an initiative that the United States was leading on, and yet it was a liability for us when [I and Senator Van Hollen] were there because Hezbollah had let people know that, in fact, it was the United States that was stopping this initiative, that the Caesar sanctions were the only thing standing in the way of Egyptian gas getting to Lebanon. And that was the narrative that was the dominant narrative. Not that the United States is trying to find innovative, creative means to get gas to Lebanon, but that the United States is standing in the way of gas getting to Lebanon. It just feels to me that we are completely outgunned and outmanned when it comes to Hezbollah’s effort to spin a narrative compared to our embassy and our State Department’s ability to tell the real story of what’s going on.”
On U.S. support for Prime Minister Abiy Ahmed, Murphy asked Ervin Massinga, nominee for U.S. Ambassador to Ethiopia: “We go from Nobel Prize to civil war within 12 to 18 months. We’re celebrating him as a statesman who’s willing to set aside grievance to make peace with his neighbors. And some critics of our policy will say that we kind of misread the core political dynamics in the country and that our support for Abiy ended up underwriting his confrontational approach with his rivals, including the TPLF. And so I just wonder what you think in hindsight? Was our assessment of Abiy off? Did we make a mistake to make this bet? Did we end up providing him with cover to allow him to engage in the kind of tactics that have gotten us to this sort of moment of crisis?”
Source: United States Senator for Indiana Todd Young
May 16, 2023
WASHINGTON – U.S. Senators Todd Young (R-Ind.), Jeanne Shaheen (D-N.H.), and Kevin Cramer (R-N.D.) reintroduced the bipartisan Mental Health Excellence in Schools Act to address the shortage of mental health providers in schools by boosting the pipeline of graduate students trained to become school psychologists, counselors, and social workers responding to the youth mental health crisis that was worsened by the pandemic. More specifically, this legislation would authorize the Department of Education to partner with higher education institutions to help cover students’ costs at relevant graduate programs.
“Providing Hoosier students with access to mental health resources will help improve the safety, well-being, and academic success of our students,” said Senator Young. “The Mental Health Excellence in Schools Act will both support the school-based mental health workforce and address the critical need for these professionals.”
“Our nation is facing a mental health crisis that’s uniquely impacting our young people. To ensure students have access to the care they need, we must ensure access to the mental health professionals in schools to meet kids where they are and assist students dealing with any challenges they may be facing. Unfortunately, we don’t have a strong pipeline of mental health providers, leaving many kids and teenagers vulnerable and without the help they need,” said Senator Shaheen. “The Mental Health in Schools Excellence Act will help ensure students have access to the support services they need.”
“Like so many fields across the state, there simply aren’t enough school-based mental health professionals. Ensuring our kids’ well-being and academic success should be our first priority,” said Senator Cramer.“Our bill will alleviate the financial strain of earning a graduate degree by encouraging more practitioners to work in schools across the state.”
The National Association of School Psychologists (NASP) recommends a ratio of one school psychologist per 500 students. However, the national average ratio is estimated to be approximately one school psychologist per 1,200 students, with wide variation among states.
The Mental Health Excellence in Schools Act seeks to increase the recruitment and retention of mental health services providers in schools. The legislation creates a program for the Department of Education to partner with eligible graduate institutions to cover up to the full cost of school-based mental health graduate programs for students at eligible institutions.
U.S. Representatives Brian Fitzpatrick (R-PA-01) and Jared Golden (D-ME-02) are leading a companion version of this bill in the U.S. House of Representatives.
“Over 38 percent of America’s school students do not have adequate access to comprehensive mental health resources,” said Congressman Fitzpatrick.“As co-chair of the Bipartisan Mental Health and Substance Use Disorder Task Force, I am proud to introduce the Mental Health in Schools Excellence Act to ensure that students have access to the mental health services they need to flourish.”
“Students of all ages in Maine and across the country are facing significant challenges to their mental health,” said Congressman Jared Golden.“We must ensure that our public schools have the resources that they need to help these students. I’m proud to join my colleagues in the House and Senate in pushing to address shortages of school mental health professionals by introducing this bill to help cover the attendance costs to attain graduate degrees in school psychology.”
The legislation has been endorsed by the National Association of School Psychologists, the American School Counselor Association, the School Social Work Association of America, the American Counseling Association and the American Psychological Association.
“Schools play a critical role in meeting the mental and behavioral health needs of children and youth. Equipping schools to meet the mental and behavioral health needs of students must be a top priority as we address the ongoing youth mental health crisis,”said NASP President, Dr. Celeste Malone. “Unfortunately, we are facing a shortage of school psychologists and other school-based mental health providers, which is impeding schools’ ability to meet the growing needs of students and their families. We applaud Senators Shaheen, Young, and Cramer and Congressmen Fitzpatrick and Golden for their leadership in introducing legislation that will help increase the pool of professionals appropriately trained to support our children’s learning and mental health in schools.”
Source: United States Senator for Indiana Todd Young
May 16, 2023
WASHINGTON – U.S. Senators Todd Young (R-Ind.), Chris Murphy (D-Conn.), Marco Rubio (R-Fla.), Elizabeth Warren (D-Mass.), Ron Wyden (D-Ore.), and Tim Kaine (D-Va.) released a new report by the U.S. Government Accountability Office (GAO) which found the use of non-compete agreements (NCAs) is widespread throughout the U.S. labor market and restricts job mobility, lowers wages for workers, and discourages innovation.
In 2019, the Senators requested a nonpartisan GAO investigation into the prevalence and effects of NCAs on workers and the economy as awhole. Their letter cited concernsabout the spread of these agreements from highly technical fields into lower wage work, and the impact they could have on entrepreneurship and innovation, economic and wage growth, and productivity and competition in labor markets.
GAO reviewed existing studies, surveyed 446 private sector employers, and conducted a separate survey of 25 state attorney general offices on state statutes related to NCAs. GAO also interviewed stakeholders, such as worker advocates, employer groups, and researchers, and reviewed relevant federal laws.
In its report, GAO estimated that 18% of workers were subject to NCAs at the time the study was conducted,and 38% of workers have been subject to an NCA at some point in their career.Over half of the 446 private sector employers responding to GAO’s survey reported that at least some of their workers had NCAs. While many employers report using NCAs to protect their business interests, including trade secrets and client lists, GAO found that the use of NCAs is not limited to executives, but rather extends to hourly and low-wage workers who are unlikely to have access to the types of confidential information employers seek to protect.
GAO found that workers’ job mobility is reduced in states that are more likely to enforce NCAs, while state bans on NCAs for certain workers increased workers’ wages, on average. The studies reviewed by GAO also showed that enforcement of NCAs may restrain the creation of new businesses, especially in the tech and science industries, because of increased probability of litigation and greater costs of recruiting and hiring staff.
“This Government Accountability Office report confirms what we have long known: the vast majority of non-compete agreements restrict job mobility and stifle economic growth,” said Senator Young. “Congress should pass our bipartisan Workforce Mobility Act to rein in the use of non-competes. The reforms in our bill will assist workers and entrepreneurs so they can freely apply their talents where their skills are in greatest demand, making our economy more dynamic.”
“The GAO’s report confirms what workers, advocates, and entrepreneurs have said for a long time: non-compete agreements depress wages and stave off competition. It’s a bad deal for low- and high-income workers, but it’s also a bad deal for our economy at a time when we should be encouraging more innovation, not less. This report makes clear that it’s time for Congress to pass legislation to protect workers and encourage more economic development,” said Senator Murphy.
A one-pager on GAO’s findings is available here. The full GAO report is available here.
Background:
In February 2023, Senators Young and Murphy reintroduced the Workforce Mobility Act, bipartisan legislation to limit the use of non-compete agreements that negatively impact American workers. Young and Murphy also released this statement on the Federal Trade Commission’s proposed rule limiting employers’ use of non-compete agreements for their employees in January 2023.
Source: United States Senator for Maryland Chris Van Hollen
May 16, 2023
Bill would help return American profits to American workers, instead of foreign investors
Today, U.S. Senators Chris Van Hollen (D-Md) and Marco Rubio (R-Fla.) and U.S. Representatives Dean Phillips (D-Minn.) and Blake Moore (R-Utah) introduced bipartisan, bicameral legislation to make it easier for private companies to transfer ownership of the business to their employees. Right now, over 40 percent of U.S. corporate stock is owned by foreign investors, and foreign corporate ownership is set to increase as a wave of business owners in the baby boom generation retire and sell their companies. The lawmakers’ Employee Equity Investment Act would return a greater share of American profits to American workers, by supporting the sale of businesses to their employees. Van Hollen and Rubio were joined in introducing this legislation by Senators Tammy Baldwin (D-Wis.), Todd Young (R-Ind.), Jeanne Shaheen (D-N.H.), and Mike Braun (R-Ind.), as well as Representatives Chrissy Houlahan (D-Pa.), Dusty Johnson (R-S.D.), Jill Tokuda (D-Hawaii), Brian Fitzpatrick (R-Pa.), Mark Pocan (D-Wis.), and Dan Meuser (R-Pa.).
“American workers are the true power behind our economy. By investing in employee ownership, we’re investing in our workers and putting more of their hard-earned dollars back in their pockets, instead of sending U.S. profits overseas. This bipartisan bill will offer up-for-sale businesses the tools to transition to employee ownership – empowering workers and keeping jobs and opportunity here at home,” said Senator Van Hollen.
“Employee ownership empowers workers and improves productivity. The Employee Equity Investment Act would help facilitate and promote the sale of companies to their employees. By encouraging a system that allows employees to invest in themselves and the companies they work for, we can strengthen our economy and keep American companies in America,” said Senator Rubio.
“My family taught me that business is a means to an end; and that end is ensuring success is shared with the people and communities who help create it,” said Rep. Phillips. “Over the coming years, millions of small business owners will reach retirement age and sell to competitors or other buyers in the mergers and acquisitions market – which often results in jobs leaving the communities that rely on them. Expanding opportunities for employee ownership will help keep businesses and jobs in local communities, allow American workers to build wealth for their families, and result in more sustainable and resilient communities. Employee ownership is both good business and good for business.”
“Utah boasts a flourishing ecosystem of employee-owned businesses that create value for both their customers and employees. We must ensure that our federal programs do not inadvertently hinder opportunities for companies to transition to an employee-ownership model, and the Employee-Ownership Expansion Initiative Act (EEIA) is designed to accomplish this goal without imposing any additional burden on taxpayers,” said Rep. Moore.
“American workers deserve to enjoy all the fruits of their labor in the work place, yet still far too many foreign entities are reaping the benefits of our very own workforce in corporate stock ownership. I’m proud to join this bill that will put a greater share of American profits back in the pockets of those who earned them and strengthen American industries as whole,” said Senator Braun.
Studies have shown that employee-owned companies are more productive, prove more resilient during challenging economic conditions, and enable workers to build more wealth compared to those at traditional firms, while keeping local businesses rooted in their communities.
Nearly half of all private businesses are owned by individuals who are at or near retirement age – totaling 2.9 million companies that employ over 32 million workers. Many of these owners will sell their businesses to buyers in the mergers and acquisitions (M&A) market or close their doors, ultimately resulting in the loss of jobs and businesses in local communities. Employee ownership can be a solution to preserving those jobs and local economic activity, but the current process of transitioning to this model is burdensome. The status quo typically places the onus on the business owner to initiate the transaction, ensure compliance with complex regulations, and provide the financing themselves – a difficult ordeal that, provided it is successful, ends with owners waiting several years to receive their full payout from the transaction.
The lawmakers’ bill works through the longstanding Small Business Investment Company (SBIC) program at the Small Business Administration (SBA), which provides loan guarantees to investment funds that invest in small businesses. In order to make employee ownership more viable, the Employee Equity Investment Act uses the SBIC program to support a new generation of investment funds that are devoted to expanding employee ownership at small and mid-size businesses. These investment funds would finance and facilitate the process of selling a company to its employees, and sustain and expand existing employee-owned firms. As under the current SBIC program, loan guarantees would be provided on a zero-subsidy basis with fees paid by the investment funds, in order to expand access to financing without cost to the taxpayer.
Stakeholders endorsing the Employee Equity Investment Act include The ESOP Association, Ownership America, National Cooperative Business Association, Employee-Owned Contractors Roundtable, Economic Innovation Group, Small Business Majority, and U.S. Impact Investing Alliance. A full list of endorsing organizations is here.
“The ESOP Association fully supports and endorses the bipartisan Employee Equity Investment Act. This important bill addresses a critical factor currently preventing ESOP growth – access to capital. When the Employee Equity Investment Act becomes law, the known benefits of employee ownership could be extended more broadly nationwide to benefit workers, families, businesses, and the communities in which they live and operate. We appreciate the sponsors’ work with the employee ownership community to develop this bill and are grateful to the bipartisan congressional ESOP champions who have found common ground,” said James Bonham, President and CEO of the ESOP Association.
“Access to capital is a key missing piece needed to spur a new wave of ESOPs, and so the Employee Equity Investment Act is a bold, substantive step towards improving the finance landscape for ESOPs. The ESOP Association’s Public Policy Council has closely studied access to capital issues, and addressing this matter is a cornerstone of TEA’s public policy agenda. Members of Congress, both House and Senate, who developed this bill should be applauded for their leadership,” said Peter A. Ney, Executive Vice President, Treasurer and Director at EA Engineering, Science, and Technology, Inc., PBC located in Hunt Valley, Maryland, and Chair of the ESOP Association’s Public Policy Council.
“Lifting up the middle class requires more Americans having the opportunity to build wealth through equity ownership. The EEIA is a transformational piece of legislation that will enable a new generation of Americans to become employee owners and retire with dignity. By making employee ownership a more viable option for business succession, this bipartisan legislation will contribute to a more dynamic, inclusive, and resilient American capitalism,” said Jack Moriarty, Founder and Executive Director of Ownership America.
“American workers are the driving force behind the U.S. economy’s strength, dynamism and resilience. And with the right tools, investors can help empower them further. The U.S. Impact Investing Alliance is proud to endorse the Employee Equity Investment Act, a worker-focused piece of legislation that will leverage private capital to bolster employee ownership models and generate long-lasting economic opportunities for entrepreneurs, small businesses and local communities,” said Fran Seegull, President of the U.S. Impact Investing Alliance.
“The Economic Innovation Group (EIG) applauds the introduction of the bipartisan Employee Equity Investment Act. This legislation would help a wider array of small and medium-sized businesses whose owners are nearing retirement age make the transition to employee ownership, thereby supporting local economies and building wealth and retirement security for American workers,” said John Lettieri, President and CEO of EIG.
“The Employee Equity Investment Act (EEIA) is essential to unlocking opportunity and wealth creation for women business owners. The EEIA will provide a financing mechanism by which retiring women owners of successful businesses can ‘cash out’ and sell it to their workers, sustaining their legacy and growing the economy. We thank Senators Van Hollen, Rubio, Baldwin, Young, Shaheen, and Braun and Representatives Phillips, Moore, Houlahan, and Johnson for their bicameral, bipartisan leadership to introduce the EEIA,” said Lisa Coppola, National Advocacy Committee Chair of the National Association of Women Business Owners.
Source: United States Senator for New Jersey Bob Menendez
WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the U.S. Finance Committee, today questioned witnesses during a hearing about how House Republican funding cuts to the Internal Revenue Service (IRS) would contribute to the federal deficit and would reverse recent improvements to customer service and processing at the agency. The Senator also pointed out the GOP’s hypocrisy, noting Congressional Republicans voted to avoid default under President Trump without hesitation as they simultaneously ballooned the deficit with their tax giveaway of 2017.
“Time and again my colleagues across the aisle have hijacked negotiations to avoid default in order to extract spending cuts in the name of fiscal responsibility,” said Sen. Menendez. “It seems hypocritical to me for Congressional Republicans to threaten default and call for spending cuts on the backs of working families when they have depleted the revenue side of the ledger over the last five years.”
In response to a question from Sen. Menendez during the hearing, Dr. Natasha Sarin, an economist and associate professor at Yale Law School, emphasized how the 2017 Republican Tax Law will add about $3 trillion to the federal deficit over ten years.
During the exchange, Sen. Menendez added, “[I proudly] voted for the Inflation Reduction Act (IRA), which actually cuts deficit spending while supercharging investments in renewable energy. It also provides resources for the IRS to modernize its IT system, restore customer service, and hire the personnel necessary to collect the taxes that everyone, including wealthy individuals, legally owe.”
Sen. Menendez highlighted how the IRA made a significant difference in reversing a concerning trend from the last decade that had resulted in 20 percent of the IRS workforce being laid off and exacerbated customer service problems at the agency.
“While middle class families and small businesses bear the brunt of the IRS customer service problems, wealthy individuals and large corporations are all too happy to take advantage of the IRS’ limitations. Ultimately, that means less revenue to cover the costs of our federal budget,” said Sen. Menendez. “We are already seeing improvements at the IRS due to the Inflation Reduction Act. Customer service has significantly improved, and the IRS is planning to hire the personnel needed to ensure the wealthiest are paying what they legally owe. But now Republicans’ answer to balance the budget is to slash this critical IRS funding and reverse this progress.”
Because of the Senator’s oversight efforts over the last year, including eight letters to the head of the IRS, paired with Inflation Reduction Act investments in the IRS, the agency has hired 5,000 new customer service workers to help meet taxpayers’ needs. Over this year’s tax filing season, the IRS consistently answered the phones between 80 and 90 percent of the time, at an average speed of answer of 4 minutes, compared to last year where the average level of phone service was 17 percent with a speed of answer rate of 27 minutes.
The Senator concluded by calling out Republican efforts to slash other critical government programs proven to grow jobs and the economy, such as the Child Care and Development Block Grant (CCDBG). This block grant is the main federal program that provides funding for child care providers to support low-income families in accessing affordable child care.
Source: United States Senator for New Jersey Bob Menendez
WASHINGTON, D.C.– U.S. Senator Bob Menendez (D-N.J.), a senior member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, today pressed witnesses, Gregory Becker, former CEO of Silicon Valley Bank (SVB), and Scott Shay, former chairman and co-founder of Signature Bank, during a hearing entitled “Examining the Failures of Silicon Valley Bank and Signature Bank.”
The Senator highlighted how eleven days before SVB failed under Gregory Becker’s watch, he sold $3.6 million worth of stock pursuant to a 10b5-1 plan filed by Mr. Becker in late January. 10b5-1 plans allow corporate insiders to sell shares by determining in advance the share price, number of shares, and transaction date. Sen. Menendez asked him if he was aware that Silicon Valley Bank was in trouble when the 10b5-1 was filed. In late March,Sen. Menendez signed a letterled by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales.
“In your written testimony, you’ve claimed that when you crafted your plan you believed you were ‘not in possession of any material non-public information at that time.’ However, in the past two years, the Federal Reserve issued not one, not two, but THIRTY supervisory findings which identified issues in areas like risk management, board effectiveness, and interest rate risk simulation and modeling, all of which directly contributed to the bank’s collapse,” said Sen. Menendez. “These findings were not publicly available. All of this happened in a two-year span when you and other executives sold $84 million dollars of SVB stock.”
The Senator also asked Gregory Becker if he believed he and his colleagues earned the bonuses paid on March 10, 2023, which were approved by SVB’s Compensation Committee to reward executives and employees for their 2022 performance. According to public reporting, these bonuses were paid mere hours before regulators seized the bank.
“In 2019, a Bloomberg report found that SVB, First Republic, and Signature were the three highest-paying publicly-traded banks in the country. It’s no coincidence then, that those banks are now better known for three of the largest bank failures in U.S. history,” added Sen. Menendez. “Clearly the compensation structure at your institution was not in line with the long-term interests of your shareholders and deposit holders. I hope to work with my colleagues on legislation to rein in risky incentive-based compensation plans that leave taxpayer(s) footing the bill when banks fail.”
Sen. Menendez concluded by grilling Scott Shay about bank management failures as detailed in supervisory reports from the Federal Reserve and Federal Deposit Insurance Corporation (FDIC). These reports stated that after the Republican-led Congress relaxed supervisory requirements on midsized banks in 2018, both Silicon Valley Bank and Signature Bank rapidly expanded without ensuring their risk management and corporate governance practices could keep up.
“I’m glad to hear you say that [yes] now, but it’s too little too late. According to the FDIC, Signature’s management ‘pursued rapid, unrestrained growth without developing and maintaining adequate risk management practices and controls appropriate for the size, complexity and risk profile of the institution,’” concluded Sen. Menendez. “Now, as I sit here, I hear you testify all collectively that you did everything right. Something happened because the banks failed.”
In late March,Sen. Menendez signed a letterled by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales. Also in March,the Senator joined with Sens. Cory Booker and Elizabeth Warren, Congresswoman Katie Porter and dozens of Senate and House colleagues to introduce the Secure Viable Banking Act, legislation that would repeal Title IV of S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 following the collapse of Silicon Valley Bank and Signature Bank. Sen. Menendez is a longtime consumer protection advocate, and was outspoken about the dangers of passing S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, five years ago, which reduced critical oversight and capital requirements for large banks.
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WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, today pressed witnesses, Gregory Becker, former CEO of Silicon Valley Bank (SVB), and Scott Shay, former chairman and co-founder of Signature Bank, during a hearing entitled “Examining the Failures of Silicon Valley Bank and Signature Bank.”
The Senator highlighted how eleven days before SVB failed under Gregory Becker’s watch, he sold $3.6 million dollars worth of stock pursuant to a 10b5-1 plan filed by Mr. Becker in late January. 10b5-1 plans allow corporate insiders to sell shares by determining in advance the share price, number of shares, and transaction date. Sen. Menendez asked him if he was aware that Silicon Valley Bank was in trouble when the 10b5-1 was filed. In late March, Sen. Menendez signed a letter led by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales.
“In your written testimony, you’ve claimed that when you crafted your plan you believed you were ‘not in possession of any material non-public information at that time.’ However, in the past two years, the Federal Reserve issued not one, not two, but THIRTY supervisory findings which identified issues in areas like risk management, board effectiveness, and interest rate risk simulation and modeling, all of which directly contributed to the bank’s collapse,” said Sen. Menendez. “These findings were not publicly available. All of this happened in a two-year span when you and other executives sold $84 million dollars of SVB stock.”
The Senator also asked Gregory Becker if he believed he and his colleagues earned the bonuses paid on March 10, 2023, which were approved by SVB’s Compensation Committee to reward executives and employees for their 2022 performance. According to public reporting, these bonuses were paid mere hours before regulators seized the bank.
“In 2019, a Bloomberg report found that SVB, First Republic, and Signature were the three highest-paying publicly-traded banks in the country. It’s no coincidence then, that those banks are now better known for three of the largest bank failures in U.S. history,” added Sen. Menendez. “Clearly the compensation structure at your institution was not in line with the long-term interests of your shareholders and deposit holders. I hope to work with my colleagues on legislation to rein in risky incentive-based compensation plans that leave taxpayer(s) footing the bill when banks fail.”
Sen. Menendez concluded by grilling Scott Shay about bank management failures as detailed in supervisory reports from the Federal Reserve and Federal Deposit Insurance Corporation (FDIC). These reports stated that after the Republican-led Congress relaxed supervisory requirements on midsized banks in 2018, both Silicon Valley Bank and Signature Bank rapidly expanded without ensuring their risk management and corporate governance practices could keep up.
“I’m glad to hear you say that [yes] now, but it’s too little too late. According to the FDIC, Signature’s management ‘pursued rapid, unrestrained growth without developing and maintaining adequate risk management practices and controls appropriate for the size, complexity and risk profile of the institution,’” concluded Sen. Menendez. “Now, as I sit here, I hear you testify all collectively that you did everything right. Something happened because the banks failed.”
In late March, Sen. Menendez signed a letter led by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales. Also in March, the Senator joined with Sens. Cory Booker and Elizabeth Warren, Congresswoman Katie Porter and dozens of Senate and House colleagues to introduce the Secure Viable Banking Act, legislation that would repeal Title IV of S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 following the collapse of Silicon Valley Bank and Signature Bank. Sen. Menendez is a longtime consumer protection advocate, and was outspoken about the dangers of passing S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, five years ago, which reduced critical oversight and capital requirements for large banks.
WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, today pressed witnesses, Gregory Becker, former CEO of Silicon Valley Bank (SVB), and Scott Shay, former chairman and co-founder of Signature Bank, during a hearing entitled “Examining the Failures of Silicon Valley Bank and Signature Bank.”
The Senator highlighted how eleven days before SVB failed under Gregory Becker’s watch, he sold $3.6 million dollars worth of stock pursuant to a 10b5-1 plan filed by Mr. Becker in late January. 10b5-1 plans allow corporate insiders to sell shares by determining in advance the share price, number of shares, and transaction date. Sen. Menendez asked him if he was aware that Silicon Valley Bank was in trouble when the 10b5-1 was filed. In late March, Sen. Menendez signed a letter led by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales.
“In your written testimony, you’ve claimed that when you crafted your plan you believed you were ‘not in possession of any material non-public information at that time.’ However, in the past two years, the Federal Reserve issued not one, not two, but THIRTY supervisory findings which identified issues in areas like risk management, board effectiveness, and interest rate risk simulation and modeling, all of which directly contributed to the bank’s collapse,” said Sen. Menendez. “These findings were not publicly available. All of this happened in a two-year span when you and other executives sold $84 million dollars of SVB stock.”
The Senator also asked Gregory Becker if he believed he and his colleagues earned the bonuses paid on March 10, 2023, which were approved by SVB’s Compensation Committee to reward executives and employees for their 2022 performance. According to public reporting, these bonuses were paid mere hours before regulators seized the bank.
“In 2019, a Bloomberg report found that SVB, First Republic, and Signature were the three highest-paying publicly-traded banks in the country. It’s no coincidence then, that those banks are now better known for three of the largest bank failures in U.S. history,” added Sen. Menendez. “Clearly the compensation structure at your institution was not in line with the long-term interests of your shareholders and deposit holders. I hope to work with my colleagues on legislation to rein in risky incentive-based compensation plans that leave taxpayer(s) footing the bill when banks fail.”
Sen. Menendez concluded by grilling Scott Shay about bank management failures as detailed in supervisory reports from the Federal Reserve and Federal Deposit Insurance Corporation (FDIC). These reports stated that after the Republican-led Congress relaxed supervisory requirements on midsized banks in 2018, both Silicon Valley Bank and Signature Bank rapidly expanded without ensuring their risk management and corporate governance practices could keep up.
“I’m glad to hear you say that [yes] now, but it’s too little too late. According to the FDIC, Signature’s management ‘pursued rapid, unrestrained growth without developing and maintaining adequate risk management practices and controls appropriate for the size, complexity and risk profile of the institution,’” concluded Sen. Menendez. “Now, as I sit here, I hear you testify all collectively that you did everything right. Something happened because the banks failed.”
In late March, Sen. Menendez signed a letter led by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales. Also in March, the Senator joined with Sens. Cory Booker and Elizabeth Warren, Congresswoman Katie Porter and dozens of Senate and House colleagues to introduce the Secure Viable Banking Act, legislation that would repeal Title IV of S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 following the collapse of Silicon Valley Bank and Signature Bank. Sen. Menendez is a longtime consumer protection advocate, and was outspoken about the dangers of passing S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, five years ago, which reduced critical oversight and capital requirements for large banks.
WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, today pressed witnesses, Gregory Becker, former CEO of Silicon Valley Bank (SVB), and Scott Shay, former chairman and co-founder of Signature Bank, during a hearing entitled “Examining the Failures of Silicon Valley Bank and Signature Bank.”
The Senator highlighted how eleven days before SVB failed under Gregory Becker’s watch, he sold $3.6 million dollars worth of stock pursuant to a 10b5-1 plan filed by Mr. Becker in late January. 10b5-1 plans allow corporate insiders to sell shares by determining in advance the share price, number of shares, and transaction date. Sen. Menendez asked him if he was aware that Silicon Valley Bank was in trouble when the 10b5-1 was filed. In late March, Sen. Menendez signed a letter led by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales.
“In your written testimony, you’ve claimed that when you crafted your plan you believed you were ‘not in possession of any material non-public information at that time.’ However, in the past two years, the Federal Reserve issued not one, not two, but THIRTY supervisory findings which identified issues in areas like risk management, board effectiveness, and interest rate risk simulation and modeling, all of which directly contributed to the bank’s collapse,” said Sen. Menendez. “These findings were not publicly available. All of this happened in a two-year span when you and other executives sold $84 million dollars of SVB stock.”
The Senator also asked Gregory Becker if he believed he and his colleagues earned the bonuses paid on March 10, 2023, which were approved by SVB’s Compensation Committee to reward executives and employees for their 2022 performance. According to public reporting, these bonuses were paid mere hours before regulators seized the bank.
“In 2019, a Bloomberg report found that SVB, First Republic, and Signature were the three highest-paying publicly-traded banks in the country. It’s no coincidence then, that those banks are now better known for three of the largest bank failures in U.S. history,” added Sen. Menendez. “Clearly the compensation structure at your institution was not in line with the long-term interests of your shareholders and deposit holders. I hope to work with my colleagues on legislation to rein in risky incentive-based compensation plans that leave taxpayer(s) footing the bill when banks fail.”
Sen. Menendez concluded by grilling Scott Shay about bank management failures as detailed in supervisory reports from the Federal Reserve and Federal Deposit Insurance Corporation (FDIC). These reports stated that after the Republican-led Congress relaxed supervisory requirements on midsized banks in 2018, both Silicon Valley Bank and Signature Bank rapidly expanded without ensuring their risk management and corporate governance practices could keep up.
“I’m glad to hear you say that [yes] now, but it’s too little too late. According to the FDIC, Signature’s management ‘pursued rapid, unrestrained growth without developing and maintaining adequate risk management practices and controls appropriate for the size, complexity and risk profile of the institution,’” concluded Sen. Menendez. “Now, as I sit here, I hear you testify all collectively that you did everything right. Something happened because the banks failed.”
In late March, Sen. Menendez signed a letter led by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales. Also in March, the Senator joined with Sens. Cory Booker and Elizabeth Warren, Congresswoman Katie Porter and dozens of Senate and House colleagues to introduce the Secure Viable Banking Act, legislation that would repeal Title IV of S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 following the collapse of Silicon Valley Bank and Signature Bank. Sen. Menendez is a longtime consumer protection advocate, and was outspoken about the dangers of passing S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, five years ago, which reduced critical oversight and capital requirements for large banks.
WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, today pressed witnesses, Gregory Becker, former CEO of Silicon Valley Bank (SVB), and Scott Shay, former chairman and co-founder of Signature Bank, during a hearing entitled “Examining the Failures of Silicon Valley Bank and Signature Bank.”
The Senator highlighted how eleven days before SVB failed under Gregory Becker’s watch, he sold $3.6 million dollars worth of stock pursuant to a 10b5-1 plan filed by Mr. Becker in late January. 10b5-1 plans allow corporate insiders to sell shares by determining in advance the share price, number of shares, and transaction date. Sen. Menendez asked him if he was aware that Silicon Valley Bank was in trouble when the 10b5-1 was filed. In late March, Sen. Menendez signed a letter led by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales.
“In your written testimony, you’ve claimed that when you crafted your plan you believed you were ‘not in possession of any material non-public information at that time.’ However, in the past two years, the Federal Reserve issued not one, not two, but THIRTY supervisory findings which identified issues in areas like risk management, board effectiveness, and interest rate risk simulation and modeling, all of which directly contributed to the bank’s collapse,” said Sen. Menendez. “These findings were not publicly available. All of this happened in a two-year span when you and other executives sold $84 million dollars of SVB stock.”
The Senator also asked Gregory Becker if he believed he and his colleagues earned the bonuses paid on March 10, 2023, which were approved by SVB’s Compensation Committee to reward executives and employees for their 2022 performance. According to public reporting, these bonuses were paid mere hours before regulators seized the bank.
“In 2019, a Bloomberg report found that SVB, First Republic, and Signature were the three highest-paying publicly-traded banks in the country. It’s no coincidence then, that those banks are now better known for three of the largest bank failures in U.S. history,” added Sen. Menendez. “Clearly the compensation structure at your institution was not in line with the long-term interests of your shareholders and deposit holders. I hope to work with my colleagues on legislation to rein in risky incentive-based compensation plans that leave taxpayer(s) footing the bill when banks fail.”
Sen. Menendez concluded by grilling Scott Shay about bank management failures as detailed in supervisory reports from the Federal Reserve and Federal Deposit Insurance Corporation (FDIC). These reports stated that after the Republican-led Congress relaxed supervisory requirements on midsized banks in 2018, both Silicon Valley Bank and Signature Bank rapidly expanded without ensuring their risk management and corporate governance practices could keep up.
“I’m glad to hear you say that [yes] now, but it’s too little too late. According to the FDIC, Signature’s management ‘pursued rapid, unrestrained growth without developing and maintaining adequate risk management practices and controls appropriate for the size, complexity and risk profile of the institution,’” concluded Sen. Menendez. “Now, as I sit here, I hear you testify all collectively that you did everything right. Something happened because the banks failed.”
In late March, Sen. Menendez signed a letter led by Chair Sherrod Brown to Securities and Exchange Commission (SEC) Chair Gensler requesting prompt examinations of these sales. Also in March, the Senator joined with Sens. Cory Booker and Elizabeth Warren, Congresswoman Katie Porter and dozens of Senate and House colleagues to introduce the Secure Viable Banking Act, legislation that would repeal Title IV of S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 following the collapse of Silicon Valley Bank and Signature Bank. Sen. Menendez is a longtime consumer protection advocate, and was outspoken about the dangers of passing S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, five years ago, which reduced critical oversight and capital requirements for large banks.
COCC Chosen as One of Fifteen Sites Across the Country for EV Technician Program
Washington, D.C. – Oregon’s U.S. Senators Jeff Merkley and Ron Wyden announced today that Central Oregon Community College (COCC) was awarded nearly $3 million to help expand the electric vehicle (EV) technician workforce. The funding comes from the National Science Foundation and will support COCC’s Northwest Engineering and Vehicle Technology Exchange (NEVTEX).
“The transportation sector is the largest contributor to greenhouse gas emissions in the U.S. So it is imperative that we transition away from gasoline-powered vehicles, which are fanning the flames of the crisis,” said Merkley. “Ensuring we have trained technicians is a critical part of the infrastructure we need to support the growing number of drivers choosing to go electric. This funding will put COCC in the driver’s seat for expanding and supporting this vital and growing sector.”
“This major federal investment in Central Oregon Community College will generate big gains for students eager to be trained in the good-paying jobs that are growing as part of the green energy economy,” said Wyden, who as Chair of the Senate Finance Committee worked to include new credits and incentives for EVs in the Inflation Reduction Act. “I’m gratified that COCC has earned these resources to build out EV technician training for Central Oregon. And I’ll keep battling to ensure every part of Oregon secures similar job training gains from our country’s clean energy future.”
“Central Oregon Community College is grateful to receive this transformative award from the National Science Foundation and proud that it recognizes the leadership and expertise of our automotive faculty,” said COCC president Dr. Laurie Chesley. “Senators Wyden and Merkley have always supported our college’s efforts to invest in a future-oriented workforce, and this award will expand upon this support by growing the impact of the NEVTEX Next consortium’s skilled EV technician training. The consortium, of which COCC’s faculty are essential founding members, will help fifteen geographically and demographically diverse two-year colleges to broaden the EV workforce and meet the growing national need.”
COCC is one of 15 two-year colleges who will develop EV technician programs under the NEVTEX Next consortium. The consortium will create and test a model for addressing the need to educate the EV skilled technician workforce through four objectives:
15 new two-year college EV technician programs will be started and certified by providing professional development for instructors and supplying necessary testing equipment.
An advisory group will promote and sustain a national, industry-recognized EV certification for educators and technicians to advance standards-based EV certifications at two-year colleges and in the EV workforce.
Five college automotive instructors will gain the EV technology knowledge and skills required to be certified in the national EVPro+ training and testing standards, and equipment will be provided at their colleges to establish five authorized EVPro+ certification testing sites.
Consortium-wide training based on proven and successful strategies will enable automotive faculty to develop effective student recruitment and retention strategies to increase diversity in their programs by attracting and retaining women and underserved minorities.