Senator Blumenthal Week In Review 03/10/2023—03/17/2023

PROTECTING WORKERS & SMALL BUSINESSES IN THE WAKE OF SILICON VALLEY BANK’S COLLAPSE

— U.S. Senator Richard Blumenthal (D-CT) attended a briefing on efforts to protect depositors in the wake of Silicon Valley Bank’s collapse.

“After just finishing a briefing with the Fed, FDIC, Treasury & White House, I’m reassured their strong, prompt action will help avert further instability. The goal is to make depositors, banks, & others aware that fear driven withdrawals are unnecessary & unhelpful.”

“There should be significant comfort in this robust program: backups & safeguards, above the $250,000 FDIC insurance, & a major facility supporting banks—at no (zero) cost to taxpayers & with no protections for shareholders.”

“I’ve heard from diverse interests around CT & elsewhere about the ramifications of closing SVB & Signature Bank. I hope this action provides some real time reassurance.”

— Blumenthal joined U.S. Representatives Adam Schiff (D-CA) and Mike Levin (D-CA) to introduce the Deliver Executive Profits on Seized Institutions to Taxpayers Act in response to last week’s Silicon Valley Bank collapse – the second largest bank failure in American history.

The FDIC has acted to ensure workers and small businesses are not left with nothing. But before the bank failed, CEO Greg Becker sold a reported $3.6 million in SVB stock, potentially profiting off the impending demise of the very bank he managed. And SVB employees received bonuses just hours before the government stepped in to close the bank.

This legislation would hold executives of failed banks that receive federal assistance like SVB accountable for the mismanagement of the funds they were trusted with by allowing the Treasury Department to claw back bonuses and stock profits – ensuring they are held financially responsible and the burden of their actions doesn’t land on the shoulders of consumers or taxpayers.

“This measure answers the common call for accountability to meet sheer corporate greed—Silicon Valley Bank top executives pocketing huge bonuses even as their business was collapsing and depositors’ money disappearing into thin air. Our legislation claws back self-dealing payouts and stock transaction benefits to top bank leaders, returning the money to taxpayers and protecting depositors. We won’t leave the American public holding the bag for another failed bank whose top executives lined their pockets on the way out. This commonsense step should be accompanied by other even broader systemic reforms,” said Blumenthal.

— Blumenthal joined U.S. Senators Chris Murphy (D-CT) and Elizabeth Warren (D-MA) and U.S. Representatives Rosa DeLauro (D-CT), John Larson (D-CT), and Katie Porter (D-CA) in introducing the Secure Viable Banking Act, legislation that would repeal Title IV of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 following the collapse of Silicon Valley Bank (SVB) and Signature Bank.

Title IV of the Economic Growth, Regulatory Relief, and Consumer Protection Act raised the asset threshold at which a bank is considered and regulated as a “systemically important financial institution” to $250 billion, exempting SVB and other mid-sized banks from regular stress testing and enhanced liquidity, risk management, and resolution plan, or “living will,” requirements. The lawmakers' new bill would repeal these dangerous regulatory rollbacks, which invited banks to load up on risk and increase profits, restoring critical Dodd-Frank protections. 

“The collapse of Silicon Valley Bank underscores the urgent need to stop big banks’ efforts to self-govern and deregulate. Common sense measures – like strengthened stress tests and heightened capital and liquidity requirements – will safeguard vulnerable American families who have the most to lose from another financial meltdown. This legislation is an important step in addressing the regulatory rollbacks that continue to fail American consumers,” said Blumenthal. 

— Blumenthal and Warren sent a letter to the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) calling on them to conduct a comprehensive investigation to determine whether senior executives and other key officials involved in the collapse of Silicon Valley Bank (SVB) met their statutory and regulatory responsibilities or violated civil or criminal laws.

“A series of reports revealed that key SVB officials showed a pattern of risky and questionable decision making that may have contributed to the bank’s instability and collapse and the ripple effects being felt throughout the economy,” wrote Blumenthal and Warren. “The actions of bank executives and other individuals associated with the collapse raised the specter of potential illegal or inappropriate behavior that included self-dealing, failure to meet disclosure requirements and fiduciary duties, insider trading, and more, and your investigation should thoroughly investigate these matters.”

“One of the enduring failures in the aftermath of the 2008 financial crisis was the inability or unwillingness of DOJ and bank regulators to hold bank executives accountable for behavior that destroyed millions of lives and cost trillions of dollars of wealth. The nation’s bank regulators cannot make the same mistake twice. We are not prejudging this matter, and are not in position to do so. But your agencies have extensive investigative authority and should use it appropriately,” continued the senators.

STRENGTHENING THE CPSC’S POWERS TO WARN CONSUMERS ABOUT DANGEROUS PRODUCTS

— Blumenthal and U.S. Representative Jan Schakowsky (D-IL) introduced the Sunshine in Product Safety Act to bolster the Consumer Product Safety Commission’s (CPSC) ability to communicate essential health and safety information about potentially unsafe products to consumers without risking manufacturer retaliation.

“This measure removes the regulatory straightjacket that deprives consumers of vital product safety information,” said Blumenthal. “Current regulatory requirements give companies the right to veto vital CPSC warnings and deny the truth to consumers. By repealing Section 6(b), our measure would free the CPSC to swiftly warn the public about hazardous products and require companies to put people ahead of profits.”

CPSC, an independent federal agency, was established by Congress in 1972 and tasked with promoting consumer safety. Over the years, its authority has been weakened and its funding reduced. In 1981, Congress significantly amended Section 6(b) of the Consumer Product Safety Act to give manufacturers an effective veto over the CPSC’s release of company-related information to the public, forcing the agency to negotiate with manufacturers before releasing information to the public. The Sunshine in Product Safety Act would repeal Section 6(b) of the Consumer Product Safety Act and allow CPSC to more swiftly issue recalls and inform the public about hazardous products.

ADDRESSING AMERICA’S GUN VIOLENCE EPIDEMIC

— Blumenthal, a member of the Senate Judiciary Committee, defended Ethan’s Law and other safe storage legislation at a Committee hearing titled, “Protecting Public Safety After New York State Rifle & Pistol Association v. Bruen.” Last year’s Supreme Court decision struck down a New York law concerning concealed-carry licenses and set a new legal standard for other gun violence prevention measures. In Bruen, the Supreme Court ruled that the constitutionality of modern-day gun safety laws depends on whether the government can demonstrate that there were sufficiently similar historical gun laws in place at the time of the adoption of the Second Amendment in 1791 or the Fourteenth Amendment in 1868.

“Ethan’s Law simply requires that guns be safely stored. It doesn’t take away a single gun. It doesn’t look at who owns the gun. It doesn’t provide any ban on any type of gun. It simply says if you have a gun, you should safely store that gun,” said Blumenthal, before asking Eric Ruben, Assistant Professor of Law at Southern Methodist University, if under the Bruen decision legislation like Ethan’s Law would be, “constitutional under the court’s apparent reasoning that there has to be some historical analog?”    

“Before Bruen, safe storage laws fared very well in the courts,” said Ruben. While discussing 18^th century safe storage laws that were intended to separate gun powder from firearms as examples of historical analogs, Ruben said, “It was a different time with different problems and the policymakers back then addressed the problems that existed…It’s very much an open question. But one thing for sure is the court did say that a lot of regulation is still permissible under the Bruen standard.”

“Gun deaths have recently surpassed any other kinds of deaths affecting children. Gun violence is the most common cause of child death in the United States today. An estimated eight children and teens are…unintentionally injured or killed due to an unsafely stored firearms. So the risk may be different, but the analog is the same in so far as it says risk can be taken into account in requiring safe storage,” Blumenthal responded.  “I’m going to continue to advocate Ethan’s Law at the federal level and other measures that I’ve introduced here, trying to encourage the courts to interpret Bruen expansively, because it really is a matter of life and death.”

— Blumenthal and Murphy joined 12 of their Senate colleagues in urging the U.S. Department of the Treasury and the U.S. Department of Justice (DOJ) to provide guidance to financial institutions for the full implementation of the new merchant category (MCC) code the International Organization for Standardization (ISO) approved last year for gun and ammunition stores. In a letter to Treasury Secretary Janet Yellen and Attorney General Merrick Garland, the senators highlighted that the swift application of the MCC code would equip financial institutions to flag suspicious activity for the Financial Crimes Enforcement Network (FinCEN), which could help reduce the scourge of gun violence and tackle firearms trafficking and other criminal activity.

This effort comes on the heels of recent developments, in which Visa, Mastercard, and American Express have paused the implementation of the new MCC code because some Republican-led states are actively working to block its enactment. The senators believe these credit card companies have a responsibility to push forward, and Treasury and DOJ should provide them, and other financial institutions, with the proper tools for implementation in a timely manner.

“MCCs are four-digit numbers that identify the type of business processing a financial transaction – such as grocery stores, department stores, and hardware stores. Previously, gun and ammunition stores were categorized as sporting goods stores or miscellaneous general merchandise stores,” the senators wrote. “We strongly support the new MCC code for gun and ammunition stores…We believe the new MCC code has the potential to help reduce gun violence and save lives.”

“We believe that implementation of the new MCC code for gun stores could enable financial institutions to identify and report potentially illegal gun sales to law enforcement—helping reduce gun trafficking, straw purchases, and transactions structured to evade the mandatory multiple sale reports required by firearm retailers,” the senators concluded. “Financial firms are already obligated to report suspicious transactions connected with a range of illegal activities. Implementation of the new MCC code could provide banks with key insight to identify suspicious patterns of firearm and ammunition purchases, which could potentially help law enforcement preempt mass shootings.”

— Blumenthal applauded President Biden’s executive order to increase the number of background checks and promote more secure firearms storage.

“Increasing the number of gun sales subject to background checks, encouraging the use of red flag laws, & promoting safe storage—President Biden’s executive action will save lives. Glad the President is doubling down on the progress made by the Bipartisan Safer Communities Act.”

PROVIDING CONNECTICUT FAMILIES WITH HOME HEATING ASSISTANCE

— Blumenthal joined the Connecticut Congressional delegation in announcing that Connecticut will receive an additional $10.6 million in regular Low-Income Home Energy Assistance Program (LIHEAP) funds to assist homeowners with their energy bills.

The $560 million in LIHEAP funds, of which Connecticut will receive $10.6 million, is administered by the U.S. Department of Health and Human Services (HHS) and comes at a time when energy assistance remains in high demand.

“Connecticut families should not have to choose between heating their homes, keeping the lights on or putting food on the table,” the delegation said in a statement. “This $10.6 million is a lifeline for Connecticut families and comes at a time when heating assistance programs are cutting back to meet surging demand for their services. We are pleased HHS released this funding and will keep fighting for robust investments in LIHEAP to provide real relief for Connecticut families.”

INVESTING IN CONNECTICUT’S SUBMARINE WORKFORCE

— Blumenthal released the following statement in response to President Biden's announcement of a landmark purchase and training agreement with Australia and the United Kingdom under which Australia will purchase as many as five Virginia-class nuclear-powered submarines from the United States:

“This deal is truly historic – big and bold in its critical allied commitment to undersea defense in the Pacific. The agreement is a global investment in Connecticut’s submarine workers, whose skill and dedication are unmatched worldwide. American shipbuilders and sailors will be critical to making AUKUS work — both constructing Virginia Class submarines and training our allies to operate and maintain them. The Navy now must work harder to expand and extend our submarine workforce, as we continue to build two Virginia-class boats a year as well as the Australian submarines. The challenges ahead are formidable – recruiting and training workers, imparting skills to allies, protecting transferred technology, and others – but I am confident that these three great allies will succeed.” 

LIMITING JUNK HEALTH CARE PLANS

— Blumenthal joined health care advocates to call on the Biden Administration to limit the availability of junk health care plans — which can deny coverage to people with pre-existing conditions and often don’t cover essential services like maternity care, prescription drugs, substance use disorder treatment and emergency room care.

In a letter, Blumenthal joined 32 of his colleagues in urging the Department of Health and Human Services (HHS) to take immediate action and address short-term limited duration insurance (STLDI) plans, or junk plans. In 2018, in an effort to sabotage the Affordable Care Act (ACA), the Trump Administration made junk plans more widely available to consumers. Since then, these plans have continued to expand, however, they are not required to adhere to important standards, including prohibitions on discrimination against people with pre-existing conditions, coverage for the 10 essential health benefit (EHB) categories, and annual out-of-pocket maximums.

PROTECTING VETERANS FROM PREDATORY FEES

— Blumenthal announced new legislation to hold unaccredited entities that target men and women who served in uniform accountable for their predatory practices. The Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act would reinstate criminal penalties for unaccredited claims representatives who charge unauthorized fees while helping file a disability claim. Current law prohibits unaccredited individuals and businesses from charging a fee for assisting a veteran in the preparation, presentation or prosecution of a VA benefit claim. However, the VA and other federal agencies are limited in their ability to enforce the law because criminal penalties were eliminated from the statute nearly 20 years ago.

“This legislation is needed because unaccredited claims representatives often extract exorbitant profits from veterans,” said Blumenthal. “Predatory scammers who exploit our heroes must be held accountable – which is why the GUARD VA Benefits Act makes strong bipartisan sense. By strengthening the VA’s enforcement authority, we can protect our veterans charged for benefits they’ve rightfully earned.”

EXPANDING ACCESS TO MENTAL HEALTH CARE

— Blumenthal and Murphy announced $1.8 million in federal funding for Intercommunity to expand their mental health and primary care services in Hartford to approximately 2,000 new low-income, uninsured or under-insured patients.

“Intercommunity is a place of real care—a beacon of hope. The $1.8 million in federal funding Chris Murphy & I announced today will enable major expansion & enhancement at their North End facility. Thousands more people will have the benefits of this world class health care.”

Since the beginning of the COVID-19 pandemic, demand for mental and behavioral health services has soared in Connecticut and across the nation. This $1.8 million will allow Intercommunity to expand their North End facility to include more group therapy rooms, seven new counseling offices and other office space. With the bigger facility, Intercommunity plans to hire 14 new staff members who will be able to serve an additional 2,000 clients in the Hartford area.

FIGHTING ROADWAY FATALITIES IN TORRINGTON

— Blumenthal announced $200,000 in federal funding for the City of Torrington to develop a comprehensive safety action plan. The funding is awarded through the Bipartisan Infrastructure Law’s Safe Streets and Roads for All (SS4A) grant program, a new program established to prevent roadway deaths and serious injuries.

“Last year CT roads were deadlier than ever. With this $200,000 grant Torrington will be able to fight back against these fatalities & improve street safety. A model & leader in safety.”

PROTECTING KIDS ONLINE

— Blumenthal and U.S. Senator Marsha Blackburn (R-TN) sent a letter to Pinterest CEO Bill Ready requesting answers on the company’s practices for identifying and removing sexually suggestive content that is harmful to young users. The letter follows a recent NBC News report that highlighted how pedophiles are using Pinterest to entice and target underage girls as young as nine years old. The NBC News investigation found that not only is Pinterest allowing this to happen, but its recommendation engine is making it easy to do so.

“Pinterest often holds out its content reporting mechanisms and age assurance practices to prevent underage users from using the platform, including in meetings with Congressional staff. The company has also emphasized its commitment to youth mental health and privacy and making that a top priority for the company, a laudable goal given the impacts of other social media platforms on mental health. Unfortunately, according to the issues found in the report, Pinterest has fallen short of these aspirations,” the senators wrote.

“As the authors of the bipartisan Kids Online Safety Act, we believe that the social media platforms have profound moral and social obligations to protect children and teens from mental health risks, sexual exploitation, and other harms. While Pinterest has taken steps to address several of the issues identified in NBC News’ report, it should not have taken national media coverage of such graphic misuse targeting young children to prompt action. We encourage Pinterest to live up to its ideal as the positive corner of the internet, and to support legislation such as the Kids Online Safety Act,” the senators concluded.

SAFEGUARDING REPRODUCTIVE RIGHTS

— Blumenthal joined U.S. Senators Patty Murray (D-WA), Debbie Stabenow (D-MI), and 14 of their colleagues in sending letters to seven of the nation’s largest retail pharmacies urging them to provide the strongest possible legal access to mifepristone for patients—and communicate clearly about their plans and policies. In the letters, the senators request more information about the companies’ plans to provide customers access to mifepristone and underscore the importance of ensuring patients are able to get the safe and effective FDA-approved drug.

The letters—sent to Walgreens, Albertsons, Costco, Kroger, Walmart, CVS Health, and Rite Aid—come after the Food and Drug Administration (FDA) announced in early January it was removing burdensome requirements and allowing retail pharmacies to dispense mifepristone directly to customers for the first time ever.

“At a time of great confusion about abortion access, your company has done the disservice of adding to it,” the members wrote to Walgreens. “While we are well aware of threatening letters you received with regard to the distribution of mifepristone in certain states, the response to those pressures was unacceptable and appeared to yield to these threats—ignoring the critical need to ensure patients can get this essential health care wherever possible. As you continue with the FDA certification process and fully comply with state and federal law, it is critical that your company also provides the strongest possible access to this vital medication and communicates clearly about this.”

LOWERING DRUG COSTS FOR SENIORS

— Blumenthal and Murphy joined U.S. Senators Ron Wyden (D-OR), Jon Tester (D-MT), and 19 of their colleagues in a request to the Biden administration to publicize the effect of the Inflation Reduction Act’s Medicare Part B inflation rebate on coinsurance in the program. The letter, sent to Center for Medicare and Medicaid Services (CMS) Administrator Chiquita Brooks-LaSure, comes as the Biden administration continues to implement the Inflation Reduction Act’s drug pricing provisions.

“We strongly urge CMS to provide the following information quickly to help seniors in traditional Medicare and their families plan for lower cost-sharing on their Part B medications: (1) a list of the common names of Medicare Part B medications that will be subject to a coinsurance reduction on April 1, 2023; and (2) the percentage and amount of the coinsurance reduction for each Part B drug,” the senators wrote. “High Part B drug prices set by manufacturers place a heavy burden on Medicare beneficiaries, since patients pay 20 percent of the cost of these drugs… The IRA penalizes inflated drug prices and lowers Part B cost sharing to combat this financial burden.”

EVALUATING THE RISKS OF CHINESE-MADE DRONES

— Blumenthal joined U.S. Senators Mark Warner (D-VA) and Marsha Blackburn (D-VA) in urging the Cybersecurity and Infrastructure Security Agency (CISA) to reevaluate the risks associated with the use of drones manufactured by Shenzhen DJI Innovation Technology Co., Ltd. (DJI), a company with deep ties to the Chinese Communist Party (CCP). In 2022, DJI was officially identified as a “Chinese military company” by the Department of Defense following several warnings about its risks, including a 2017 intelligence bulletin warning that DJI was likely providing sensitive U.S. infrastructure and law enforcement data to the Chinese government. Despite this action, the use of DJI drones remains common throughout the country. In 2021, it was reported that DJI controlled almost 90% of the consumer drone market in North America and over 70% of the industrial market. And in 2019, it was reported that 73% of public safety organizations are flying the company’s aircrafts.

“[T]he widespread use of DJI drones to inspect critical infrastructure allows the CCP to develop a richly detailed, regularly updated picture of our nation’s pipelines, railways, power generation facilities, and waterways,” the senators wrote in a letter to CISA Director Jen Easterly. “This sensitive information on the layout, operation, and maintenance of U.S. critical infrastructure could better enable targeting efforts in the event of conflict.”

EXPANDING MEDICARE COVERAGE OF CHIROPRACTIC CARE

— Blumenthal and U.S. Senator Kevin Cramer (R-ND) joined U.S. Representatives Greg Steube (R-FL), Brian Higgins (D-NY), Mal Alford (R-MO), and John B. Larson (D-CT) in introducing the Chiropractic Medicare Coverage Modernization Act, legislation to ensure Medicare patients have access to chiropractic care as a non-drug alternative for pain management. Medicare first began providing beneficiaries access to chiropractic care in 1972. Since then, Medicare has only been able to reimburse services considered “medically necessary” and include burdensome red tape requirements.

“Expanding Medicare coverage to chiropractic services will provide seniors with access to affordable, quality care,” said Blumenthal. “Outdated regulations and red tape have blocked beneficiaries living with chronic pain and discomfort from seeking these helpful services – which often serve as a substitute to potentially addictive opioids. Our bipartisan legislation puts patients first – ensuring seniors enrolled in Medicare receive the treatment they need and deserve.”

KEEPING ROADWAY WORK ZONES SAFE

— Blumenthal and U.S. Senator Mike Braun (R-IN) introduced a resolution to recognize April 17 – April 21, 2023 as National Work Zone Awareness Week. This resolution comes at a time where roadside work zone fatalities have been gradually increasing since the year 2006 – an epidemic that devastates Americans and their families from every state. With Congressional recognition of National Work Zone Awareness week, people from all over the country can learn how to move through and operate in work zones in a manner that is safe for everyone, and thus, curb the needless and tragic loss of life that has become all too common in our roadways.

“Work zone awareness is critical for preventing the needless tragedies that plague our roadways,” said Blumenthal. “Road workers, first responders, pedestrians, and bicyclists are too often injured or killed by reckless, irresponsible drivers. All drivers should heed laws – like those to slow down and move over – when approaching these areas. By promoting common sense measures and precautions, our resolution takes steps to protect everyone on our streets from being put in harm’s way. I’m proud to lead this bipartisan effort with Senator Braun.”

SUPPORTING OUR ALLIES IN UKRAINE

— Blumenthal attended a concert to benefit Ukrainian solider amputees.

“A moving, inspiring concert to benefit Ukrainian soldier amputees—brave freedom fighters who’ve suffered brutal wounds in their battle against Russian criminal aggression & atrocities, & need prosthetics. Thanks to Operation Renew Prosthetics for advancing this critical cause.”

— Blumenthal and U.S. Senator Lindsey Graham (R-SC) joined Ukrainian Ambassador to the United States Oksana Markarova in briefing the Yale School of Management Summit on the war’s developments. 

“Strong support this morning for Ukraine at the Yale SOM Corporate Summit—briefed by Sen. Graham & me, with wonderful Ambassador Oksana Makarova attending.”

— Blumenthal applauded Poland’s decision to supply Ukraine with fighter jets.

“I applaud Poland’s decision to once again lead in the fight to bring advanced weaponry to Ukraine. The US & the rest of NATO must soon follow—showing stalwart support for Ukraine's herculean efforts to repel Russia’s invasion. Poland is leading again—showing how to face Russia’s monstrous threat head on. Knowing how crucial planes are to Ukraine, Poland also knows Putin likely will be coming for them next if he wins in Ukraine.”

AROUND CONNECTICUT

— Blumenthal attended St. Patrick’s Day events in New Haven and Bridgeport.

“A rousing, resounding St. Patrick’s Day Parade in New Haven on an exquisitely beautiful afternoon—all of us proudly Irish for this spirited march. The town boasting green, end to end. Thanks to the Associated Irish Societies for all your hard work!”

“Irish flag raising on #StPatricksDay—song & spirit shared by all! A special occasion in Bridgeport to celebrate a special heritage & community.”

— Blumenthal reacted to the passing of Ann Uccello and Sam Cingari.

“Ann Uccello was a CT trailblazer whose impressive determination & enthusiasm made her a champion for our capital city. Her life of service deeply impacted our state & nation. My thoughts are with her loved ones.”

“Sam Cingari was one of the kindest, warmest human beings I’ve known. Community minded to the core, he was endlessly generous & open-hearted to good causes. A true leader for the city, state & nation he loved. Cynthia & I send sympathies to his beautiful family.”

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