Integrated Deepwater Program Reform Act

Mr. President, I am pleased to be joined by my colleague Senator Mel Martinez as we introduce a package of bills aimed at providing a comprehensive solution to strengthen our Nation's property and casualty insurance market. Without serious reform, the Federal Government will be forced to continue to spend billions of dollars of taxpayer money to cover the costs of natural disasters in the United States. Worse, without Federal action, property insurance soon will become more expensive and hard to find, preventing some consumers from insuring their homes and businesses.

As we know all too well, the last few years have brought a devastating cycle of natural catastrophes in the United States. In 2004 and 2005, we witnessed a series of powerful hurricanes that caused unthinkable human tragedy and property loss. Hurricanes Katrina and Rita alone caused over $200 billion in total economic losses, including insured and uninsured losses.

In my own home State of Florida, eight catastrophic storms in fifteen months caused more than $31 billion in insured damages. Now Florida is witnessing skyrocketing insurance rates, insurance companies are canceling hundreds of thousands of policies, and Florida's State catastrophe fund is depleted.

In short, the inability of our private markets to fully handle the fallout from natural disasters has made our Nation's property and casualty insurance marketplace unstable. This market instability repeatedly has forced the Federal Government to absorb billions of dollars in uninsured losses. This is a waste of taxpayer money, especially when we know there are ways to design the system to anticipate and plan for the financial impacts of catastrophes.

As insurance companies struggle to maintain their businesses, costs are passed on to homeowners and small businesses in Florida and in other States. In essence, the people who can least afford it are being forced to bear the disproportionate share of the billions of dollars of losses caused by natural catastrophes.

Many Floridians have seen their insurance bills double in the last few years. As I travel around Florida, I hear repeatedly from my constituents that they may soon be unable to afford property and casualty insurance. That is a frightening proposition for people living in a State where increasingly vicious hurricane seasons are predicted. I am sure we all agree--consumers never should be put in the untenable position of having to choose between purchasing insurance and purchasing other necessities.

While our Nation's property and casualty insurance system is not yet broken, it's clear that Congress needs to act now to shore up the system. Private sector insurance is currently available to spread some catastrophe-related losses throughout the Nation and internationally, but most experts believe that there will be significant insurance and reinsurance shortages. These shortages could result in future dramatic rate increases for consumers and businesses and the unavailability of catastrophe insurance.

Let me be clear: these issues will not just affect Florida or the coastal States. Natural catastrophes can strike anywhere in the country. For example, a major earthquake fault line runs through several of our Midwestern States. We also saw firsthand the devastating effects of a volcano eruption at Mount Saint Helens in Washington State.

In the past few decades, major disasters have been declared in almost every State. As I mentioned earlier, the Federal Government has provided and will continue to provide billions of dollars and resources to pay for these catastrophic losses, at huge costs to all American taxpayers.

Congress has struggled with these issues for decades. Although we have talked about these issues time and time again, nothing much has gotten accomplished. The most notable step Congress did take was to create a National Flood Insurance Program. But Congress needs to do much more. It's time for a comprehensive approach to solving our Nation's property and casualty insurance issues.

These matters are usually within the purview of the States, and I cannot understate the importance of State-based solutions to these insurance issues. Nonetheless, the Federal Government also has a critical interest in ensuring appropriate and fiscally responsible risk management of catastrophes.

For example, mortgages require reliable property insurance, and the unavailability of reliable property insurance would make most real estate transactions impossible. Moreover, the public health, safety, and welfare demand that structures damaged or destroyed in catastrophes be reconstructed as soon as possible.

In order to help protect consumers and small businesses, today I join Senator Martinez to introduce this package of bills as part of a comprehensive approach to fixing our troubled insurance system. Let me summarize each of the bills and tell you how this integrated approach makes good policy sense.

The first piece of legislation Senator Martinez and I are introducing today is the Homeowners Protection Act of 2007. This bill is a companion bill to legislation introduced by Florida Representatives Brown-Waite, Buchanan, and others.

This bill would establish a Fund within the U.S. Department of Treasury, which would sell Federal catastrophe insurance to State catastrophe funds; like the fund I helped to set up in Florida. State catastrophe funds essentially act as reinsurance mechanisms for insurance companies who lack resources to compensate homeowners for their losses.

Under this bill, State catastrophe funds would be eligible to purchase reinsurance from the Federal fund at sound rates. However, a State catastrophe fund would be prohibited from gaining access to the Federal fund until private insurance companies and the State catastrophe fund met their financial obligations.

Why is this good for homeowners? Because this back-up mechanism will improve the solvency and capacity of homeowners' insurance markets, which will reduce the chance that consumers will lose their insurance coverage or be hit by huge premium increases.

Importantly, the Homeowners Protection Act of 2007 also recognizes that part of the problem with our broken property and casualty insurance system lies with outdated building codes and mitigation techniques. Noted insurance experts and consumer groups have been pointing out this problem for many years. So, under the bill, the Secretary of the Treasury would establish an expert commission to assist States in developing mitigation, prevention, recovery, and rebuilding programs that would reduce the types of enormous damage we have seen caused by past hurricanes.

I note that this bill covers not just hurricanes, but catastrophes such as tornados, earthquakes, cyclones, catastrophic winter storms, and volcanic eruptions. These are disasters that can--and do--occur in many different States. Again, every State and every taxpayer is affected by this problem, not just Florida.

This bill has widespread support from a broad range of stakeholders, including ProtectingAmerica.org, a national coalition of first responders, businesses, and emergency managers. This organization is co-chaired by former FEMA director James Lee Witt, one of the most respected names in disaster prevention and preparedness.

The second bill that Senator Martinez and I are introducing today is the Catastrophic Savings Accounts Act of 2007. This bill proposes changing the Federal tax code to allow homeowners to put money aside-- on a tax-free basis--to grow over time. If and when a catastrophe hits, a homeowner could take the accumulated savings out of the account to cover uninsured losses, deductible expenses, and building upgrades to mitigate damage that could be caused in future disasters. Homeowners could even reduce their insurance premiums because their tax-free savings would allow them to choose higher deductibles.

The benefits of this approach are pretty straightforward and very consumer friendly. Homeowners would be encouraged to plan in advance for future disasters, and they wouldn't be taxed to do it. Moreover, homeowners wouldn't be as dependent on insurance companies to help them out immediately after a disaster. As one expert has noted, why should a consumer continue to give insurance companies thousands of dollars each year when the consumer could deposit the same amount of money annually in a tax-free, interest-bearing savings account controlled by the consumer?

The third bill that Senator Martinez and I are introducing today is the Policyholder Disaster Protection Act of 2007. Under this bill, insurance companies would be permitted to accumulate tax-deferred catastrophic reserves, much like the way that homeowners would be permitted under the bill I just discussed. Depending on their size, insurance companies could save up to a certain capped amount, which would grow over time.

Our current Federal tax code actually provides a disincentive for insurance companies to accumulate reserve funds for catastrophes. Under the current system, insurance companies can only reserve against losses that have already occurred, instead of future losses. The United States is the only industrialized nation that actually taxes reserves in this way. It's time for reform, so that consumers are better protected.

Make no mistake, though--this bill is not a give-away to the insurance companies. Instead, the Policyholder Disaster Protection Act of 2007 would strictly regulate when and how insurance companies could access their reserves, to make sure the money is used only for its intended purposes.

If implemented correctly, this bill could result in approximately $15 billion worth of reserves being saved up by insurance companies, which later could be spent to pay for policyholder claims and to keep insurance policies available and affordable. Consumers could feel more protected knowing that their insurance company would have the money saved to help them out after a major disaster. Moreover, this approach should help make the insurance market more stable and less prone to insurers going bankrupt.

The fourth bill that Senator Martinez and I are introducing is the Hurricane and Tornado Mitigation Investment Act of 2007. A similar bill was introduced in the House of Representatives by Gus Bilirakis and has eight cosponsors.

We have learned through experience that steps taken to fortify and strengthen homes and businesses can prevent damage in the event of a catastrophe. This bill would allow a tax credit of 25 percent not to exceed $5,000 for the costs of building upgrades to mitigate damage caused by hurricanes or tornados.

Updates and improvements to roofs, exterior doors and garages would be covered under this bill. To ensure that these measures are adequately constructed, a state-certified inspector must examine the home or business. The benefits of this approach are straightforward-- home and business owners would be encouraged to plan in advance for future disasters and take steps to mitigate damage caused by catastrophic events.

The fifth bill that Senator Martinez and I are introducing is the Nonadmitted and Reinsurance Reform Act of 2007. Last year, a similar bill, introduced by Ginny Brown-Waite passed unanimously in the House of Representatives.

Currently, a small percentage of consumers may be unable to find insurance from a licensed insurer, and may be able to purchase insurance from non-licensed insurers, called nonadmitted or surplus lines insurers. These surplus lines insurers often function as a ``safety valve'' for the insurance market. Florida has more individuals in the surplus lines market than any other State.

Virtually every sector--insurers, producers, consumers--has voiced concern with the inefficient patchwork of different laws and regulations that characterize the surplus lines regulatory system. This bill aims to streamline regulations in the surplus lines marketplace through a mix of national standards with State enforcement and uniformity achieved through both incentives and preemption of certain State laws. This bill would create a more efficient and streamlined regulatory system and promote competition in the nonadmitted marketplace.

The sixth bill that Senator Martinez and I are introducing is the National Hurricane Research Initiative Act of 2007. From the storms of 2004 and 2005 we learned the importance of accurate hurricane tracking and prediction. Accurate prediction provides residents of coastal communities more time to find safe and sound shelter.

The objective of this bill is to enhance and improve knowledge of hurricanes by harnessing the expertise of the Federal Government's science professionals to better understand hurricane prediction, intensity, and mitigation on coastal populations and infrastructure.

Let me emphasize again what we need to accomplish to reform our current insurance system and to effectively plan for catastrophic losses.

We need a comprehensive approach that will make sure the United States is truly prepared for the financial fallout from natural disasters. We need a property and casualty insurance system that is not forced to spread valuable taxpayer dollars after a catastrophe strikes. We need a system that protects consumers and small businesses from losing their insurance policies or being forced to pay exorbitant insurance rates. We need ways to encourage responsible construction and mitigation techniques. And we need a

system that helps insurance companies use their resources in cost- effective ways so that they will not go insolvent after major disasters.

Our American economy depends on a health property and casualty insurance system. By enacting meaningful reforms, we can ensure that our economy remains protected and remains the most resilient economy in the world. I know this complicated process won't be easy for us--but let's roll up our shirtsleeves and get it done.

I request that the text of the Homeowners Protection Act of 2007, the Catastrophe Savings Accounts Act and the Policyholder Disaster Protection Act of 2007 be printed in the Record.

Mr. President, I rise today to introduce legislation that helps the U.S. Forest Service to protect sensitive and precious forest by selling developed land in Leon County, FL, in order to purchase at-risk land in the heart of our national forests.

Specifically, this bill allows for the sale of tract W-1979, which is 114 acres in Tallahassee, the proceeds of which are specifically designated to purchase private inholdings in the Apalachicola National Forest. The Forest Service believes that W-1979 has lost its national forest character and is unmanageable; the land will be sold to Leon County, where it will help the continued advancement of Blueprint 2000, a series of community initiatives to improve Tallahassee and Leon County. By selling this land on the outskirt of the Apalachicola National Forest, the Forest Service can acquire precious land in the heart of the forest that could be lost to development.

This legislation also gives the U.S. Forest Service in Florida the same flexibility to manage lands and capital that many other states have. Previously, whenever National Forest land was sold, the funds could only be used to purchase more land, while many important infrastructure projects went undone. With passage of this bill, proceeds only from the sale of ``non-green'' lands can go towards capitol improvements, such as administrative facilities that help the Forest Service manage the Ocala, Apalachicola, and Osceola National Forests. These non-green lands have already been developed with urban improvements, and no longer align with the goals of the U.S. Forest Service.

Congressman Crenshaw and Boyd have introduced similar legislation in the House of Representatives. I hope that we can quickly pass these bills and help Leon County and the Forest Service.

I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, on behalf of myself and Senators Hagel, Bingaman, Kerry, Mikulski, Lincoln, Biden, Vitter, Domenici, Martinez, Salazar, Snowe, Brown, Feinstein, Murray, and Clinton, I am honored to introduce legislation today that we are convinced is necessary to fix a long-standing problem in our military survivors benefits system.

President Lincoln's words are as relevant and moving today as they were during the Civil War: ``as God gives us to see the right, let us strive on to finish the work we are in; to bind up the nation's wounds; to care for him who shall have borne the battle, and for his widow, and his orphan.''

Our Nation continues to be engaged in a violent struggle against brutal and vicious enemies around the world. Sadly, Americans are lost every day. We must never forget that the families left behind by our courageous men and women in uniform bear the greatest pain. Their survivors face a life forever altered, and a future left unclear. They suffer the greatest cost of the ultimate sacrifice, and the nation that asked for that sacrifice must honor it.

Back in 1972, Congress established the military survivors' benefits plan--

or SBP--to provide retirees' survivors an annuity to protect their income. This benefit plan is a voluntary program purchased by the retiree or issued automatically in the case of servicemembers who die while on active duty. Retired servicemembers pay for this benefit from their retired pay. Upon their death, their spouse or dependent children can receive up to 55 percent of their retired pay as an annuity.

For over five years, I've been talking about the unfair and painful offset between SBP and the Department of Veterans Affairs' Dependency and Indemnity Compensation, or DIC, which is received by the surviving spouse of an active duty or retired military member who dies from a service-connected cause. Under current law, even if the surviving spouse of such a servicemember is eligible for SBP, that purchased annuity is reduced by the amount of DIC received. Another inequity in the current system is the delayed effective date for ``paid-up status'' under SBP. We should act to correct these injustices this year.

We have made progress, but even with the important changes made over the last few years, the offset still fails to take care of our military widows and surviving children the way it should. We have considered and adopted increased death gratuity benefits for the survivors of our troops lost in this war, and we have changed the law to enable these survivors to automatically enroll in SBP. However, now we see the pain caused when at the same moment a widow is enrolled in SBP she is hit with the DIC offset.

The SBP offset is no less painful for the survivors of our 100 percent disabled military retirees. SBP is a purchased annuity plan. Before coming to the U.S. Senate, I served as Insurance Commissioner for the State of Florida, and I know of no other purchased annuity program that can then turn around and refuse to pay you the benefits you purchased on the grounds that you are getting a different benefit from somewhere else.

Our Federal civil servants receive both their purchased survivor income protection annuity and any disability compensation for which they may be entitled--without offset. Why on earth would we treat our 100 percent disabled military retirees any differently, especially after they have given the best years of their lives and their health in service to the Nation?

Let me be clear about this: survivors of servicemembers are entitled in law to automatic enrollment in SBP; 100 percent disabled military retirees purchase SBP. Survivors stand to lose most or even all of the benefits under SBP only because they are also entitled to DIC.

This legislation also accelerates an improvement we made earlier to the SBP program. We have already agreed that military retirees who have reached the age of 70 and paid their SBP premiums for thirty years should stop paying a premium, but we delayed the effective date for this relief until 2008. We should not delay their relief any further.

The United States owes its very existence to generations of soldiers, sailors, airmen, and marines who have sacrificed throughout our history to keep us free. The sacrifices of today are no less important to American liberty or tragic when a life is lost in the defense of liberty everywhere.

We owe them and their surviving family members a great debt.

Unfortunately, it is too often that we fall short on this care. We must meet this obligation with the same sense of honor as was the service they and their families have rendered.

We will continue to work to do right by those who have given this Nation their all, and especially for the loved ones they may leave to our care.

I appreciate the co-sponsorship of my colleagues--Senators Hagel, Bingaman, Kerry, Mikulski, Lincoln, Biden, Vitter, Domenici, Martinez, Salazar, Snowe, Brown, Feinstein, Murray, and Clinton--and look forward to working with my colleagues in the days ahead.

I ask unanimous consent that the text of the bill be printed in the Record.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6999) to restructure the Coast Guard Integrated Deepwater Program, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days in which to revise and extend their remarks on the pending bill.

Mr. Speaker, this legislation in a previous form passed the House last year by a vote of 426-0. The Senate passed a comparable bill by unanimous consent. The bill before us is a bipartisan compromise between our Committee on Transportation and Infrastructure in the House and the Committee on Commerce, Science, & Transportation in the Senate.

It is a complicated piece of legislation that took a great deal of time to work out. The objective of this legislation is to reform the Coast Guard acquisition program.

Stories began creeping out of mistakes and cost overruns and serious problems within the Coast Guard's Deepwater Program. A closer look by our committee investigative staff found that there were serious flaws in the conduct of this program, and we began an extensive inquiry and investigation into those flaws and into the consequences thereof, the most serious of which was that the first article of the cutter extension program went to sea and cracked in three places, predicted to be problem areas by the chief naval architect of the Navy, in consultation to a whistleblower within the Deepwater Program.

I need not go back and unravel all of the details that led up to that. Suffice it to say that the core of the problem was a self- certification initiative undertaken by the Coast Guard at the direction of the Department of Homeland Security that led to serious flaws, not only in the program but in the construction of these vessels and the extension initiative. The result was that taxpayers have lost over $100 million, the Coast Guard has lost the service of some 49 cutters, and frankly, I think there should have been criminal investigations undertaken by the Justice Department of those engaged in these practices.

Thanks to the leadership of the gentleman from Maryland, the Chair of the Coast Guard Subcommittee, Mr. Cummings, and the staff's relentless pursuit of the facts of the causes of the problems, we held a hearing that went till 11:30 at night, nearly 10 hours of investigative hearing, drew fact after fact out and established causality problems and led the way to solutions. It's not enough just to conduct oversight, to find the flaws, to find the problems; it's important to correct them.

And in that process, we had this blended participation with the gentleman from Ohio (Mr. LaTourette) who has proven himself to be a devotee of the Coast Guard and mastered the issues of the Coast Guard and of this particular contractual undertaking of the Coast Guard.

The result of those hearings was substantial reform of the Coast Guard's acquisition program. The details of the program I will call on the Chair of the subcommittee, the gentleman from Maryland (Mr. Cummings), and ask him to explain the details and how we frankly intend and are going to cure this problem for the future.

It took a great deal of negotiation with the other body and with the Coast Guard to come to the resolution that we bring to the House today, and for that progress, I thank the gentleman from Ohio and the ranking member of the full committee, Mr. Mica, for their patience over many weeks of negotiating out these terms and conditions

that we bring to the House today to cure this program, save the taxpayers money, put the Coast Guard on a sound footing, and assure to the greatest extent that we can that these problems don't extend into the future.

Mr. Speaker, I rise in strong support of H.R. 6999, as amended, the ``Integrated Deepwater Program Reform Act of 2008''. I would like to congratulate the distinguished Chairman of the Subcommittee on Coast Guard and Maritime Transportation, Mr. Cummings, as well as Ranking Member Mica and Subcommittee Ranking Member LaTourette for their work on this landmark acquisition reform bill.

Last year, the House passed H.R. 2722, the ``Integrated Deepwater Program Reform Act'', by a vote of 426-0. The Senate subsequently passed its Deepwater Reform bill, S. 924, by unanimous consent. H.R. 6999 is the bipartisan compromise agreement of these two bills of the Committee on Transportation and Infrastructure and the Committee on Commerce, Science, and Transportation of the Senate.

The Integrated Deepwater Acquisition Program is a $24 billion program to replace all Coast Guard aircraft and cutters that primarily operate more than 50 miles offshore. The Coast Guard has never attempted to replace its whole fleet under one long-term program. The Committee has conducted numerous oversight hearings on this program to understand why there have been cost-overruns and why the Coast Guard spent $100 million to renovate and replace eight of its 110-foot patrol boats-- only to have these renovated boats tied to the dock as unseaworthy.

As I have said many times, if I were adrift in the ocean, there is no one I would want to save me but the U.S. Coast Guard. What they do at sea to save lives is second to none. However, when it comes to managing an acquisition program--the Coast Guard has serious challenges. Just because you can fly an aircraft or drive a cutter, doesn't mean you know how to manage an acquisition to buy that aircraft or cutter. As a result, the Coast Guard's acquisition programs are hundreds of millions of dollars over budget and years behind schedule--including the Deepwater Acquisition program and the Rescue-21 program to install new search and rescue communications systems.

In the past week, we have seen firsthand what happens on Wall Street when there is a lack of oversight, accountability, and standards. But Wall Street doesn't want to be regulated. Neither does the Coast Guard. The Coast Guard wants to have Congress continue to write the checks-- while they say ``trust us'' to spend the taxpayers' money wisely. While I would trust them with my life at sea, I don't think we should continue to write blank checks without demanding standards and accountability.

H.R. 6999 reforms the Coast Guard acquisition program. Specifically, the bill:

terminates the use of lead systems integrators beginning on October 1, 2011;

requires that the Commandant, and not the contractor, retain the technical authority to determine when the contract specifications have been met;

requires Early Operational Assessments to be made for all aircraft and cutters after they are designed--but before they are built--to ensure that they will meet the mission requirements of the Coast Guard;

requires all new cutters and aircraft and their engines to be certified by an independent 3rd party to ensure they meet design and performance requirements;

requires the development of workforce policies to ensure that the best qualified individuals are assigned to the acquisition program;

requires the Commandant to establish career paths for military and civilian personnel who wish to pursue careers in acquisition programs;

requires the Commandant to establish a balanced workforce policy to promote a workforce in which women and members of racial and ethnic minorities are appropriately represented in Government service;

establishes a Chief Acquisition Officer for the Coast Guard. The CAO may be a civilian or military officer, but must have a level III acquisition program manager certificate and 10 years of experience in an acquisition position;

requires the Coast Guard to report to Congress when there are cost overruns or program delays; and

requires the Coast Guard to use the Department of Defense's contract management expertise and contracting, where appropriate, to obtain the best possible price for Coast Guard assets.

H.R. 6999, as amended, also contains a provision that makes it unlawful to operate a stateless submersible or submersible vessel on the high seas. Use of submarines has become a new trend with the international drug runners operating out of Columbia. When the Coast Guard interdicts these vessels the smugglers pull a lever to flood and sink the submarine--and then wait for the Coast Guard to ``rescue'' them. However, all of the drugs are on the bottom of the ocean and it makes a prosecution more difficult. So Coast Guard personnel are risking their lives to enter the sinking submarine to get some of the cocaine as evidence. H.R. 6999 will obviate the need to enter the submarine. The Coast Guard can arrest the smugglers and they can be prosecuted for operating these pirate submarines.

Mr. Speaker, this is a landmark bill that will significantly improve the management of the multi-billion dollar acquisition program of the Coast Guard. It is the direct result of the Committee's in-depth investigation of the Deepwater Program. Like H.R. 2722, it deserves the support of every Member of the House.

I strongly urge my colleagues to join me in supporting H.R. 6999, the ``Integrated Deepwater Program Reform Act of 2008''.

Finally, I insert in the Congressional Record an exchange of letters between Chairman Bennie G. Thompson, Chairman of the Committee on Homeland Security, and me.

House of Representatives,

Committee on Homeland Security,

Washington, DC, September 26, 2008.

Hon. James L. Oberstar,

Chairman, Committee on Transportation and Infrastructure,

Rayburn House Office Building, Washington, DC.

Dear Mr. Chairman: I am writing to you regarding H.R. 6999,

Integrated Deepwater Program Reform Act of 2008 introduced by

Mr. Cummings on September 23, 2008.

H.R. 6999 contains provisions that fall within the

jurisdiction of the Committee on Homeland Security. I

recognize and appreciate your desire to bring this bill to

the full House expeditiously. Accordingly, I will not seek a

sequential referral of the bill. However, this decision

should not be construed as the Committee on Homeland Security

waiving, altering, o diminishing its jurisdiction over this

legislation.

Additionally, the Committee on Homeland Security reserves

the right to seek the appointment of conferees during any

House-Senate conference convned on this legislation or on

provisions of this or a similar bill that are within the

jurisdiction of the Committee on Homeland Security. I ask for

your commitment to support any such request by the Committee

on Homeland Security for the appointment of conferees on H.R.

6999 or similar legislation. Finally, I respectfully ask that

you place a copy of your letter and this letter in the

Congressional Record during floor consideration of H.R. 6999.

Thank you for your cooperation in this matter. I look

forward to working with you as we prepare to pass this

important legislation.

Sincerely,

Bennie G. Thompson,

Chairman.

Mr. Speaker, I yield myself such time as I may consume.

I thank the gentleman for those very thoughtful comments.

I was listening with great interest as he moved from deepwater to deep finance and was worried that he was going to suggest that the powers on high give that problem to our committee. Well, we'll build a fence around it, we'll build a bridge over it, we'll build a tunnel through it, we will encapsulate it and subject it to the funding out of the highway trust fund and the problem will be behind us. I think in the end we would have a solution to that problem that everybody could sign onto, but that's not our domain.

And of course we both have reservations about the legislation before us in similar spirit, but I think we go forward with this legislation, hope that the other body moves it through without further--how shall I say? I'll be kind about it--without further changes, and that the bill will move on to enactment, and that someday soon the Lorain Shipyard will build vessels for the Coast Guard. It will be good for the Great Lakes, it will be good for Lorain, Ohio, it will be good for the gentleman from Ohio, and it will be good for the country.

The Lorain Shipyard is one of the great assets of this Nation, built extraordinarily successful vessels that are still plying the lakes today, the thousand-footers that carry iron ore from northern Minnesota in my district to the lower lake steel mills, and that have borne the brunt of the forces of nature on the Great Lakes. It was a great shipyard, I've been there several times. It built the Mesabi Miner, by the way, a thousand-footer that is still active, carrying 60,000 tons of iron ore. But, unfortunately, that vessel, if I may digress a moment, and others have had to go out 7,000 tons light because of the drought in the Great Lakes and the failure of the Corps of Engineers to dredge the harbors and the channels of the Great Lakes, meaning that our lakers have to travel three or four extra voyages a year to meet the tonnage requirements, raising the cost of tactonite, and therefore raising the cost of steel production in lower lake steel mills, and why passage of our Water Resources Development Act of last year and the veto override is so critically important and why funding of those projects is so critical. And I'm delighted that the stimulus legislation we passed yesterday has some $5 billion for the Corps of Engineers to undertake projects that can be underway within 90 days. And we all know very well that there are dredging projects all throughout the Great Lakes--and the lower lake harbors, particularly-- that could benefit from that investment.

As Mr. Cummings said moments ago, we didn't get here on our own. Our staffs on both sides of the aisle have worked rigorously in shaping in legislation and in laying the groundwork for the investigation. Clay Foushee, who led the investigative team on our side. And Lucinda Lessley, on Mr. Cummings' committee staff, who championed both the oversight hearings and the legislative hearings. And our chief council on the Coast Guard Maritime Subcommittee, John Cullather--for my money, the finest mind in maritime legislation in the country. And John Rayfield, who is a storehouse of knowledge on the subject, and Eric Nagel on the minority side, all deserve our appreciation and gratitude for the many hours of labor invested in bringing us to this point of the legislation.

Mr. Speaker, I reserve the balance of my time.

I yield myself the remaining time to thank the gentleman from California, my colleague in the informal Hip Replacement Caucus, for raising the issue of submersibles and for introducing the bill that he champions that we are happy to incorporate, and which is important to do in this legislation. Again I express my profound respect, appreciation and admiration to the gentleman from Maryland for his leadership of the Coast Guard subcommittee, the gentleman from Ohio for his superb management of the issues on the minority side of the committee on this issue and for the constant communication that we've had. As long as we keep the communications going, as we have done over these 2 years and over the previous years, we will do good work for the country and for the Congress.

With that, Mr. Speaker, I ask for a unanimous vote on this legislation.

I yield back the balance of my time.

Mr. President, today I rise to support introduction of the Integrated Deepwater Reform Act.

Since 1790, the United States Coast Guard has served as the guardian of our shores. It began its service to the Nation as a lifesaving organization, protecting our mariners from the perils of the sea. Over time, its missions have come to encompass additional responsibilities including performing drug and migrant interdiction, enforcing fisheries regulations, and maintaining our Nation's waterways and aids to navigation. Following the tragic events of September 11th, 2001, the Coast Guard expanded its role in homeland security operations, becoming the agency charged with protecting our Nation from maritime threats.

Though we have expanded the role of this valiant service, we have not upgraded its equipment to the degree necessary to carry out the tasks it has been assigned. Current Coast Guard vessels comprise the third oldest naval fleet in the world. Some of its cutters still in service are over sixty years old. Recognizing the looming obsolescence of its legacy fleet, in the mid 1990s the Coast Guard embarked on an effort to create a wholly integrated system of ships, aircraft, sensors, and communications systems and called the effort Deepwater. Recapitalizing the Coast Guard remains one of this Nation's most important National Security initiatives.

However, recent events have made it clear that additional Congressional oversight is warranted for this major acquisitions program. Failure of the 123-foot patrol boat conversion program, and questions about the fatigue life of the hull of the National Security Cutter under the purview of Integrated Coast Guard Systems have called into question the value of this ``lead systems integrator.'' The contract as written has given the contractor too much autonomy and not enough focus on actual performance.

By placing restrictions on the structure of any agreements between the Coast Guard and its contractors, this bill will ensure that future Deepwater contracts protect the American taxpayer while allowing the Coast Guard to acquire the assets necessary to carry out its critical responsibilities. We cannot change the simple fact that in order to protect our Nation, the Coast Guard must be able to upgrade its existing assets. The safety of the brave men and women who serve in the Coast Guard, and the security of every American depends on the success of this program.

I remain convinced that the Integrated Deepwater Program is the appropriate vehicle for the Coast Guard's modernization. However, in order for the Coast Guard to receive the best assets at the best value for the American taxpayer, Congress must ensure that the service and the contractors recognizes their joint commitment to both excellence and fiscal responsibility. By limiting the use of a lead systems integrator, increasing requirements for open competition, requiring additional internal Coast Guard management, and increasing reporting requirements to Congress, this bill provides that assurance.

I am proud to add this bill to my record of Coast Guard oversight. I also would like to take this opportunity to thank Senator Cantwell for all her hard work on this legislation.

Mr. President, I rise today with Senator Collins to introduce two pieces of legislation to help reverse the devastating population decline and economic distress that have plagued individuals and businesses in Aroostook County, the northernmost county in Maine, as well as in other parts of the country. What the first bill does is simple, it will bring all of Aroostook County under the Empowerment Zone (EZ) program. The legislation is identical to a bill that we introduced in the 108th Congress and was included in the FY 2004 Agriculture Appropriations bill in 2003 as passed by the Senate. The second piece of legislation would enable those economically depressed communities, already taking advantage of these incentives, to secure the full 15 years of targeted growth originally granted to the areas first designated as Empowerment Zones.

To fully grasp the importance of the former legislation, it is necessary to understand the unique situation facing the residents of Aroostook County. ``The County,'' as it is called by Mainers, is a vast and remote region of Maine. It shares more of its border with Canada than its neighboring Maine counties. It has the distinction of being the largest county east of the Mississippi River. Its geographic isolation is even more acute when considering that the county's relatively small population of 73,000 people are scattered throughout 6,672 square miles of rural countryside. Aroostook County is home to 71 organized townships, as well as 125 unorganized townships much of which is forest land and wilderness.

As profoundly remote as this geographic isolation may seem, it is the

economic isolation and the recent out-migration that has had the most devastating effect on the region. The economy of northern Maine has a historical dependence upon its natural resources, particularly forestry and agriculture. While these industries served the region well in previous decades, and continue to form the underpinnings of the local economy, many of these sectors have experienced decline and can no longer provide the number of quality jobs that residents require and deserve.

While officials in the region have put forward a herculean effort to redevelop the region, with nearly 1,000 new jobs at the Loring Commerce Center alone, Aroostook County is still experiencing a significant ``job deficit'', and as a result continues to lose population at an alarming rate. Since its peak in 1960, northern Maine's population has declined by 30 percent. Unfortunately, the Maine State Planning Office predicts that Aroostook County will continue losing population as more workers leave the area to seek opportunities and higher wages in southern Maine and the rest of New England.

In January 2002, a portion of Aroostook County was one of two regions that received Empowerment Zone status from the USDA for out-migration. The entire county experienced an out-migration of 15 percent from 86,936 in 1990 to 73,938 in 2000. Moreover, a staggering 40 percent of 15- to 29-year-olds left during the last decade.

The current zone boundaries were chosen based on the criteria that Empowerment Zones be no larger than 1,000 square miles, and have a maximum population of 30,000 for rural areas. The lines drawn for the Aroostook County Empowerment Zone were considered to be the most inclusive and reasonable given the constraints of the program. It should be noted as well that the boundaries were drawn based on the 1990 census, making the data significantly outdated at the start, and included the former Loring Air Force Base and its population of nearly 8,000 people, which had closed nearly 8 years before the designation, taking its military and much of its civilian workforces with it. The Maine State Planning Office estimated that the base closure resulted in the loss of 3,494 jobs directly related to the base and another 1,751 in associated industry sectors for a total loss of $106.9 million annual payroll dollars.

Some of the most distressed communities that have lost substantial population are not in the Empowerment Zone, and other communities, such as Houlton, literally are divided simply by a road, having one business on one side of the street with no Empowerment Zone designation across from a neighboring business on the other side of the street with full Empowerment Zone benefits. The economic factors for these communities and for these neighbors are the same as those areas within the Empowerment Zone. This designation is not meant to cause divisiveness within communities, it is created to augment a partnership for growth and to level the playing field for all Aroostook County communities who have equally suffered through continuing out-migration whether it be in Madawaska or Island Falls.

The legislation I am introducing would provide economic development opportunities to all reaches of Aroostook County by extending Empowerment Zone status to the entire county. This inclusive approach recognizes that the economic hardship and population out-migration are issues that the entire region must confront, and, as evidenced by their successful Round III EZ application, they are attempting to confront. I believe the challenges faced by Aroostook County are significant, but not insurmountable. This legislation would make great strides in improving the communities and business in northern Maine, and I urge my colleagues to support this bill.

With regards to the latter bill that I am offering today, I believe all Empowerment Zone communities need 15 years to reverse years of downward spiraling that originally effected their economies. I have long supported Empowerment Zone incentives and I believe that these targeted tax incentives provide struggling communities the best chance for sustained, long lasting economic renewal.

In 1994, Congress designated the first Empowerment Zones setting 2009, a 15-year time frame, as the date that these tax incentives would expire. The 2009 expiration date of Empowerment Zone status was held firm for Round II communities designated in 1997, and the Round III communities designated in 2002. As a result of the expiration date some communities such as Aroostook County, which was designated in 2002, are granted as few as 7 years to use tax incentives to overturn decades of decline and economic neglect.

Unfortunately, Aroostook's economic problems will not be fixed within the 7 short years this area qualifies for Empowerment Zone tax incentives. Instead a long-term and lasting commitment of at least 15 years is necessary to help Aroostook communities work their way to stronger economic prosperity. Many communities, such as Aroostook County, that were unable to qualify for Empowerment Zone status until 2002, are in dire need of the long-term 15-year window in which to address their stubborn causes of poverty.

Businesses operating within Empowerment Zones receive a 20 percent wage credit for the first $15,000 they pay in wages to local residents. Other tax incentives encourage businesses and industries to further commit to these communities. Companies with businesses in Empowerment Zones are eligible for an additional $35,000 worth of 179 business expensing--making these long-term business obligations more attractive, affordable and likely. Empowerment Zones are also eligible for expanded tax exempt financing for building the infrastructure communities need to attract long-term developers and business partners.

To qualify for Empowerment Zone status, communities develop comprehensive strategic plans that depend on these tax incentives to help them transform their economies. Each community's plan focuses on establishing long-term partnerships among private businesses, non profits, state, local, and federal government agencies to help develop the local economy. Together these parties use the community's strategic blue print to implement interconnected projects that address the factors creating the area's economic sickness. These types of projects concentrate on building much-needed business and industrial infrastructure, developing an educated workforce, and diversifying local economies away from a reliance on one employer or industry.

Through the Aroostook Partnership for Progress, and the businesses working in the Empowerment Zone, the County is making significant progress--the factors causing poverty in this rural part of Maine cannot be eradicated quickly. Aroostook County's strategic plan will take time to implement as infrastructure, industry and other initiatives produce greater economic capabilities and diversification. Though Aroostook County is working valiantly to overcome the factors causing their economic plight, they will need more than seven years to overcome 40 years of difficulties. I know that there are many other struggling Round II and Round III Empowerment Zone communities, such as Aroostook, who need the maximum, in order to reverse the poverty and underdevelopment also plaguing those areas.

I urge my colleagues to recognize the urgency of making a long-term pledge to communities using Empowerment Zone incentives to work its way out of long-term poverty. I hope that each Senator will support the communities in their states, currently undertaking the painful process of economic transformation, by supporting passage of this economic development bill.

I ask unanimous consent that the text of each bill be printed in the Record.

Mr. President, this emergency supplemental appropriations bill contains $121.7 billion in funding, approximately $19 billion above the President's request, and is replete with earmarks and other nonemergency spending. Additionally, this bill would establish a timeline for the withdrawal of American troops from Iraq, regardless of the conditions there. Such a mandate would have grave consequences for the future of Iraq, the stability of the Middle East and the security of Americans at home and abroad. For these reasons, I do not support this bill.

I support full funding for our troops in this time of war, and I believe that Congress, which authorized the wars in Iraq and Afghanistan, is obligated to give American troops everything they need to prevail in their missions. Unfortunately, the must-pass nature of this bill has proven all too tempting for Senators who could not restrain their profligate impulses to pile on spending unrelated to fighting the global war on terror.

This bill exhibits little evidence that Congress respects the solemn responsibility to be custodians of the taxpayers' dollars. In a time of war, with large Federal budget deficits, at a time when Americans deserve to keep more of their earnings at home, any rational observer would counsel restraint. Yet this emergency supplemental bill is stuffed with scarce dollars for the special interests, just as the measure approved by the House last week.

The Dallas Morning News editorial board wrote last week with respect to the House-passed bill that ``turning the President's $100 billion supplemental war spending request into a $124.6 billion, pork-laden mess'' is no way to show support for the troops, adding

that ``support for the troops takes the odd form of $25 million for spinach growers . . . $1.48 billion for livestock farmers . . . and $74 million `to ensure the proper storage of peanuts.' ''

Unfortunately, the Senate has chosen to follow the House's misguided lead by adding a host of nonemergency and unrequested provisions to the measure pending before us--a measure that is desperately needed to fund the ongoing military missions.

Let me mention some of the unrequested items contained in this bill:

There is $3 million for sugar cane growers, of which the entire amount will go to one Hawaiian cooperative. Just last year Congress provided up to $40 million for Florida sugar cane growers in an emergency supplemental bill. I suppose no ``emergency supplemental'' bill is complete without a sweetener for sugar cane growers.

There is $165.9 million for fisheries disasters. Just last year Congress provided $95 million in another emergency supplemental bill to assist fishermen in recovering from fisheries disasters and to aid oyster bed and shrimp ground rehabilitation. This year, Congress's generous aid moved from the eastern seaboard to the west coast with over $60 million alone to assist salmon fishermen in Oregon and California.

There is $3,500,000 for the Capitol Guide Service and Special Services Office, to be available until September 2008. I was unaware that we had emergency tour guide needs in addition to our emergency troops' funding needs.

There is $13 million for research to develop mine safety technology. Congress provided $35 million in last year's emergency supplemental bill to hire an additional 217 mine safety inspectors, and $10 million for mine safety research, so I must question why this latest funding cannot wait for the regular appropriations process.

There is $22.76 million for geothermal energy research. While I support renewable energy research to reduce our dependency on oil, this funding was not part of the administration's budget request. Does geothermal energy research qualify as an emergency spending need? No, it does not.

There is $7 million for water quality research at pig farms in Missouri. Specifically, the bill directs the EPA to provide a $7 million grant to Water Environment Research Foundation in Alexandria, VA, to research water quality issues related to pig farms in Missouri. As many of us have stated, there is true ``pork'' in this bill as this earmark illustrates.

There is $2 million for the University of Vermont's Educational Excellence Program. This project is essentially identical to an earmark that was proposed last year. It was rejected in last year's final bill, and should not be included again this year.

There is $40 million for a ``Tree Assistance Program,'' to aid ``fruit and nut tree producers'' and other producers of a ``Christmas tree'' or ``potted shrub'' or ``ornamental tree.'' This bill is not only a big Christmas gift to special interests, but it also comes with a Christmas tree.

There is $95 million to dairy producers.

There is $20 million for reimbursements to Nevada, Idaho and Utah for ``insect damage'' from grasshoppers, crickets, and others. These pesky insects are now richer than most residents in those States.

There is $24 million to sugar beet producers as compensation for production losses. These producers should be ``beet red'' over this handout.

There is $13 million for the Ewe Lamb Replacement and Retention Program. Under this program, eligible livestock owners receive $18 for each qualifying ewe lamb. That means this provision would cover up to 722,222 sheep. Perhaps my colleagues think increasing our Nation's sheep stocks is somehow a viable alternative to the President's troop increase in Iraq? I doubt the troops appreciate the priority that we have placed on ewe lambs breeding in this bill. It is a ``baad'' earmark.

There is $6 million for crops damaged by floods in North Dakota. Yet another repeated attempt for funding that was rejected in last year's emergency supplemental.

There is $5 million for irrigation repairs in Montana. Of the $35 million provided to the USDA Emergency Conservation Programs, which was not requested by the administration, the bill earmarks $5 million for repairs to damaged irrigation ditches and pipelines in the State of Montana.

There is $30 million for the Farm Service Agency. On top of all the aforementioned programs, the bill provides $30 million for administration costs at the Farm Service Agency to ensure the Federal Government has enough employees to actually carry out all the new programs and new spending under this agriculture title. Here we see the underreported runaway effect of porkbarrel politics: more pork translates into bigger government, bigger government means larger administrative overhead, and large administrative overhead means greater costs to American taxpayers.

There is $388.9 million for funding a backlog of old Department of Transportation highway projects. The taxpayers just provided over $24 billion in unauthorized highway projects in 2005, but Congress in its infinite wisdom has seen fit to provide another $388 million in this bill.

This appropriations bill also includes numerous authorizing provisions, such as section 3001, which uses the emergency supplemental to authorize certain outdoor signs that were damaged, abandoned, or discontinued as a result of a hurricane in certain regions to be repaired, replaced, or reconstructed within 24 months of enactment. The bill also restricts authorization to the Department of Transportation to implement a provision authorized by Congress in the North American Free Trade Agreement that would allow Mexican and U.S. trucks to operate across the border, thereby facilitating free trade and benefiting the economy.

Once again, the appropriators have included a massive agriculture disaster assistance package in the emergency supplemental. The language before us today is strikingly similar to language that appeared in the 2006 emergency supplemental and to an amendment that was rejected just last December. As my colleagues surely remember, the 2006 Senate-passed emergency supplemental faced a veto threat because of the unrequested agricultural disaster package it contained. It faces the same threat today.

Most shockingly still, the bill actually underfunds the Army, Navy, Air Force, Marine Corps and Defense-Wide Operation and Maintenance accounts by nearly $1.4 billion, withholding funds from accounts directly related to fulfilling the wartime needs of the military. This is disgraceful.

This spending would be laughable if it weren't so tragic. We are at war--a war that has cost us a great deal in blood and treasure and which inevitably will cost us more still. Our troops, who fight so bravely on our behalf and who so love their country that they are willing to sacrifice everything--everything--in order to defend it, show incredible courage in carrying out their duties in Iraq and Afghanistan. And so it is only right that we, the elected leaders entrusted to preserve the common welfare, show just a modicum of the sacrifice, courage, and restraint that these warriors exhibit every day.

The Baltimore Sun editorialized last Sunday:

President Bush requested that Congress quickly fund the

troops serving in Iraq and Afghanistan and debate the war

strategy separately. Yet Congress chose to hold troop funding

hostage to pork-barrel spending and to provide terrorists

with a countdown clock to America's exit from Iraq. Lawmakers

must show that [past] promises of fiscal restraint were not

meaningless by providing a clean bill for President Bush to

sign. The troops deserve no less.

I agree it is time to exercise the fiscal discipline commensurate with the responsibilities entrusted to us by the American people and to provide our troops with the support necessary to win the war in Iraq. This bill, which provides insufficient funding for our Armed Forces and a damaging withdrawal deadline, sends the wrong message to our troops, our enemies, and the American taxpayer. The Dallas Morning News continued in its editorial:

[S]etting an arbitrary date for withdrawal only handcuffs

the troops trying to carry out their mission--and gives hope

to their ene-

mies . . . We hope--the supplemental war-spending bill does

not prove to be a reminder to Americans why the Constitution

invested commander-in-chief responsibilities in one

president, instead of 435 members of Congress.

This bill will be vetoed, and I will strongly support sustaining that veto. This bill is a perfect example of why I have long supported a President having line-item veto authority. There is some necessary funding in this bill that is urgently needed to support our troops in Iraq, but, unfortunately, the bill is saddled with too much wasteful spending and a regrettable war strategy to allow me to support it.

Mr. President, today I address an issue of critical importance to Rhode Island's Federal Wage System employees.

Federal Wage System (FWS) employees are the Federal Government's blue-collar employees. In Rhode Island, these workers include janitors, mechanics, machine tool operators, munitions and explosive operators, electricians, and engineers. The majority of FWS employees in the United States work in the Department of Defense or the Department of Veterans Affairs. Indeed, Naval Station Newport employs the most FWS workers in the Narragansett Bay area. These workers are essential to the government's daily operation, and the work that they perform is important to our national security.

Regrettably, in the Narragansett Bay wage area, Federal blue-collar workers are faced with one of the lowest FWS pay scales, while residing in an area with one of the highest costs of living. The significant disparities between wages in the Narragansett Bay wage area and the proximate Boston and Hartford wage areas raise serious questions about the fairness and equity of these pay scales. In Rhode Island, an average wage grade worker earns $18.47 per hour, whereas the same worker in Boston earns $20.77 per hour and an employee in Hartford earns $19.99 per hour. Competitive compensation is the best way to ensure the retention of qualified and effective workers. Rhode Island should not suffer the loss of experienced Federal employees to the same jobs, at the same grade levels, just miles away because of better pay.

The chair of the Federal Prevailing Rate Advisory Committee (FPRAC), which advises the Office of Personnel Management on decisions dealing with the FWS pay scales, has been left vacant, leaving the FPRAC unable to make needed decisions regarding these wage areas.

Due to the lack of a chair and any action by FPRAC or OPM, which I have long urged to resolve this matter, I am reintroducing the Rhode Island Federal Worker Fairness Act, and I am pleased that Senator Whitehouse is joining me as a cosponsor. This bill will merge the Narragansett Bay wage area with the Boston, MA, wage area to provide regional pay equity to Rhode Island Federal blue-collar workers. Merging these two wage areas will keep Federal workers in Rhode Island from abandoning their government jobs for higher paying positions elsewhere in southern New England, and help the approximately 500 wage rate workers in Rhode Island better provide for their families. I urge that this long pending inequality be addressed.

I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, today I introduce two bipartisan bills to expand access to college for students and their families.

We are slated to reauthorize the Higher Education Act this Congress for the first time since 1998. The key to this reauthorization will be ensuring that we make a substantial Federal investment in need-based grant aid. I am pleased we took a significant first step down this path last month by increasing the maximum Pell Grant, the Federal Government's primary source of need-based financial aid, for the first time in four years. However, we are still far from the robust lift Congress provided students and their families in the mid-1970s, when the maximum Pell Grant covered 84 percent of costs at a public 4-year institution. Today, it covers only 32 percent.

There has also been a concurrent increase in college costs. According to a recent report by the College Board, for the 2006-07 school year, tuition rose 6.3 percent at 4-year public colleges and 5.9 percent for 4-year private institutions. The combination of declining Federal investments in need-based aid and sharp increases in college costs has priced more and more qualified individuals out of college.

This is particularly troubling, given the strong correlation between educational attainment, employment, and wages. A college education has now increasingly become a necessary requirement for upward income mobility. College graduates, on average, earn 62 percent more than high school graduates. Over a lifetime, the gap in earnings between those with a high school diploma and a bachelor's or higher degree exceeds $1 million.

To help increase the amount of need-based grant aid to low-income students and fulfill their unmet financial aid need, today I introduce the ACCESS, Accessing College through Comprehensive Early Outreach and State Partnerships, Act, cosponsored by Senators Collins, Kennedy, Murray, Dodd, and

Sanders. This legislation improves the Leveraging Educational Assistance Partnership or LEAP program by forging a new Federal incentive for States to form partnerships with businesses, colleges, and private or philanthropic organizations to provide low-income students with increased need-based grant aid, early information and assurance of aid eligibility (beginning in middle school), and early intervention, mentoring, and outreach services. Research has shown that college access programs that combine these elements are successful in making the dream of higher education a reality. Students participating in such programs are more financially and academically prepared, and thus, more likely to enroll in college and persist to degree completion.

Since 1972, the Federal-State partnership embodied by LEAP, with modest Federal support, has helped leverage State grant aid to low-and moderate-income students. Without this important Federal incentive, many States would never have established need-based financial aid programs, and many States would not continue to maintain such programs. Last year, States matched approximately $65 million in Federal LEAP funds with over $840 million in supplemental need-based aid. By way of example, in my home State of Rhode Island, the Federal investment of approximately $350,000 in LEAP funds spurred the State to expend over $13 million in need-based aid.

The second bill I introduce today, the FAFSA Financial Aid Form Simplification and Access Act, cosponsored by Senators Collins, Kennedy, Murray, and Sanders, has several key components to make the college financial aid application process both simple and certain. First, our legislation would allow more students to qualify for an automatic-zero expected family contribution, or auto-zero, and align the auto-zero eligibility levels, income of $30,000 or less, with the standards of other Federal means-tested programs like school lunch, SSI, and food stamps. Second, the FAFSA Act would establish a short paper FAFSA or EZ-FAFSA for students who qualify for the auto-zero. Third, the bill phases out the long form, using the savings to utilize ``smart'' technology to create a tailored web-based application form and ensure that students answer only the questions needed to determine financial aid eligibility in the state in which they reside. For those students who do not have access to the Internet, we propose creating a free telefile system for filing by phone.

The FAFSA Act would also emphasize providing students with the opportunity to complete financial applications earlier in order to receive early estimates of aid eligibility. This legislation would create a pilot program to test an early application system under which dependent students would apply for an aid estimate in their junior year, using the student's prior/prior year income (PPY). The pilot program also includes a requirement that the Secretary study the feasibility, benefits, and adverse effects of utilizing information from the IRS in order to simplify the financial aid process.

I was pleased to work with the Advisory Committee on Student Financial Assistance and a host of other higher education organizations and charitable foundations on these bills. I am also pleased that both bills are supported by a range of higher education and student groups, including the American Association of Community Colleges, the American Council on Education, the Association of American Universities, the Association of Jesuit Colleges and Universities, the Center for Law and Social Policy, the National Association of College Admission Counseling, the National Association of Independent Colleges and Universities, the National Association of State Student Grant and Aid Programs, the National Association of Student Financial Aid Administrators, the United States Student Association, and the College Parents of America. The FAFSA Act is supported by the Council of Graduate Schools as well.

We must act on these bills and continue to push for increased Federal investment in need-based aid to middle- and low-income students and their families. All too often successful students give up on a college education because they think there is no way they can ever afford it. We must ensure that every student who works hard and plays by the rules gets the opportunity to live the American Dream.

I urge my colleagues to cosponsor these bills and work for their inclusion in the upcoming reauthorization of the Higher Education Act.

I ask unanimous consent that the text of these bills be printed in the Record.