Mr. President, last Tuesday, President Biden formally nominated Julie Su to be the Secretary of the Department of Labor. Now, as ranking member of the committee that oversees her nomination, I felt it was important to express some concerns…
Mr. President, last Tuesday, President Biden formally nominated Julie Su to be the Secretary of the Department of Labor. Now, as ranking member of the committee that oversees her nomination, I felt it was important to express some concerns that have only grown since her previous nomination.
Deputy Secretary Su has a troubling record and is currently overseeing the Department of Labor's development of anti-worker regulations dismantling the gig economy.
This does not inspire confidence in her current position, let alone confidence that she should be promoted. Ms. Su's record now and in her previous position as secretary for the California Labor and Workforce Development Agency deserves scrutiny. I look forward to a full review and hearing process for her nomination.
In California, Ms. Su was a top architect of AB5, a controversial law that removed the flexibility of individuals to work as independent contractors.
Now, independent contractors, you can call them freelancers. They make their own hours, and they choose the type of work they wish to do. I was recently taking a Lyft. The driver told me he was able to clear $500 a day. He has Uber, Lyft, and DoorDash on his phone. He flips between the apps, he chooses the job from whichever one is immediately available, and through it all, he clears 500 bucks a day. I said, wait a second, man, you gotta pay your gas, you gotta pay your insurance; are you still--Oh, yeah, I clear 500 a day.
Now, if he is working five days a week, he is doing $10,000 a month. Independent contractors are shielded from forced or coerced unionization that could strip that flexibility away. This, of course, has made eliminating this classification a top priority for large labor unions who benefit from more workers being forced to pay mandatory union dues.
Now, it is important to note, even in California, AB5 is extremely unpopular. And 59 percent of California voters supported a measure to exempt ride-share drivers from AB5.
The law is so flawed, the Governor and State legislature have had to pass multiple laws to exempt over 100 occupations. The statutory exemptions are longer than the text of AB5 itself.
But Ms. Su has taken her support for this anti-worker, pro-union policy to the U.S. Department of Labor. During her tenure as Deputy Secretary of Labor, essentially the Agency's chief operating officer, the Biden administration pushed to eliminate independent contracting via Federal Executive rulemaking.
Now, there was never any hope of getting AB 5--an AB 5-like law through Congress, so they pursued their goals through regulation.
And, if finalized, the new regulation strips 21 million Americans of their ability to classify themselves as independent contractors and enjoy the flexibility this provides.
This regulation would undermine the business model of services like Uber, Lyft, and DoorDash that provide valuable services and give drivers the ability and freedom to set their own hours and even hop between States.
I got off at the airport in New Orleans, Louis Armstrong International Airport, and the guy that picks me up has Maryland plates: Oh, yeah, I moved here like six months ago, wanted to come down for jazz fest, and so I just notified the different--you know, Uber and Lyft, and now I am down here working instead of back where I started.
We are talking maximum flexibility. By the way, it is not just the Uber and Lyft drivers affected; truckers are severely impacted.
Many truckers are independent owner-operators. They own their own trucks. This regulation could devastate the freedom of these truckers. It could potentially impact the supply chain in the process, as trucking moves more than 72 percent of the goods in the United States annually.
Now, as a conservative from a conservative State--but I think as an American from any State--I can say that we don't need the application of a law from one of the most liberal States to the entire Nation.
A law rejected in California is not a policy to be pursued on a Federal level. We need to support the right of workers and their ability to choose what is best for them, not put them in a straitjacket to serve other people's goals.
I also want to hear Ms. Su's position on DOL's effort to uproot the franchise model, which employs over 8 million Americans. Deputy Secretary Su has made public comments indicating that she will pursue attempts at DOL to forcibly impose a joint employer classification on the almost 800,000 franchises operating in our communities,
the same as any other small business. Sadly, franchisors with liability for thousands of franchise owners that actually operate the small business would be a sure way to destroy the system of franchising, a model which has allowed those underrepresented in the business community--women, people of color--to have the ability to live the American dream, becoming successful small business owners as they help create jobs, lifting other workers out of poverty.
No one is surprised that the joint employer rule is a major priority for large labor unions. It is easier for them to pressure one company to unionize to increase their union dues than to pressure thousands of independent businesses.
The priority of the Biden administration should not be to do whatever makes it easier to forcibly and coercively unionize workers while undermining the business models of the establishments they work for. It should be to increase individual freedom and opportunity.
What comes to mind, there is a fellow north of Baton Rouge who moved here from West Africa to attend LSU. After he attended LSU, he became a citizen, and now he is a franchisor for multiple outlets. And he talks about the American dream: coming here from Nigeria as a transfer student; getting his citizenship; and now being an owner, involved in rotary, running for political office--a better American than most Americans. Somehow, this threatens the Department of Labor.
Now, in addition to our policies, we should ask questions about how Ms. Su presided over a mismanaged California unemployment insurance program during the pandemic and why California paid $31 billion in fraudulent claims when she chose to suspend the eligibility determination process.
Some of these payments went to inmates and known domestic and international criminals. To put into context, the Department of Labor's requested budget is $15 billion and employs more than 17,000 people. This means that Ms. Su lost more than double the annual budget of the Agency she will be responsible for managing in Washington, DC. This calls into question her qualifications as a manager.
Unfortunately, there will be many reasons to be concerned about Ms. Su's nomination to head the Department of Labor, and I look forward to a full hearing process to further discuss.
Student Loans
Mr. President, today we introduced the Congressional Review Act, Resolution of Disapproval, to overturn the Biden administration's unfair student loan schemes that transfer the burden of $400 billion in Federal student loans from those who willingly took on that debt--and took on that debt to get a degree that would help them make more money--to American taxpayers who, perhaps, never went to college or already fulfilled their commitment to pay off their loans, oftentimes sacrificing to do so.
The resolution would also end the pause on student loan payments, which, by August, will have cost taxpayers almost $200 billion. President Biden has extended this pause six times, for a total of 31 months, far beyond the original justification of an ongoing pandemic. I am joined by 38 of my colleagues in offering this resolution.
Last August, President Biden announced his plan to cancel up to $20,000 in Federal student loans from most borrowers and to extend the payment and interest accrual pause in student loans via executive fiat.
Make no mistake, this reckless student loan scheme does not forgive debt. It does not forgive debt at all. It just transfers the burden from those who willingly took out these loans for college--and, again, in order to make more money when they graduate--to Americans who never attended college and who have already paid off their loans.
And I would ask: Where is the forgiveness for the guy who didn't go to college but bought a truck, went to work, and is now working to pay off that loan? Is his truck loan going to be forgiven? It will not be.
And what about the woman who paid off her student loans but is now struggling to afford her mortgage? Does she get a refund to help her with the mortgage?
Is the administration providing them relief? And the answer is no. Instead, the administration had to not only pay their bills, but the bills for those who decided to go to college in order to make more money and then have their student loans forgiven. This is irresponsible and unfair.
And, by the way, the plan does nothing to address the problems that created the debt in the first place. It doesn't hold colleges or universities accountable for rising costs. According to the College Board, in the last 30 years, tuition and fees have jumped at private nonprofit colleges by 80 percent and at public 4-year institutions by 124 percent.
And it doesn't ensure that students are prepared for life after college. Indeed, it creates a terrible moral hazard that tells students that Federal student loans aren't real commitments and tells colleges that no matter how high they raise their prices or what product they produce, the Federal Government will cover the tab, courtesy of the American taxpayer.
Our resolution prevents average Americans, the 87 percent of whom currently have no student loans, from being stuck with a policy that the administration is doing, not to be fair to all but, rather, to favor the few.
Our resolution also protects the rule of law, which President Biden must know he is violating.
During Supreme Court arguments on the legality of the student loan forgiveness in February, Justice Roberts clearly indicated that if $400 billion was to be spent on student loan cancellation, it would and should require congressional approval. That has not been given.
It is a clear example of this administration attempting to subvert Congress for what appears to be purely political purposes. It is a wildly dangerous precedent if left unchecked.
For Americans who cannot afford their debt or want a proactive approach to paying off their loan commitments, Congress has already authorized--again, let me just say this. For someone who can't afford their debt or wishes to be proactive to pay off their loan commitments, Congress has already authorized 31 different programs to help pay or forgive student loans.
I ask unanimous consent that the list of Federal programs already available to Americans who are struggling to repay their loans, work in public service, or who are in high-demand fields be printed in the Record.
Mr. President, they range from total forgiveness under public student loan forgiveness, the PSLF; Stafford loans for teachers; and Perkins loans cancellations for law enforcement officers, military, early childhood educators, and social workers, to name few.
There are also repayment programs for high-demand fields, where education is specialized and the need is a public good. For example, through the Department of Health and Human Services, therapists and behavioral health providers who are needed to help our children as we face a mental health crisis are eligible for loan forgiveness.
In addition, there are repayment policies related to the income of an individual. There are five different programs to keep payments low compared to an individual's income and to cap the total time for repayment.
These are quite different from this mass transfer of debt under this reckless student loan scheme, which forgets that these existing programs were set up to target limited taxpayer resources to benefit those using their degrees to serve and to fill broader public needs or who can demonstrate that they, themselves, have a personal, individual need.
By the way, what benefit does the GI bill hold when students can just wait to have their student loans forgiven? Why contribute to your community by teaching in a public school while getting your Federal loans paid off through your service when you can just wait for President Biden to forgive your loans? Irresponsible policies like President Biden's student loan scheme weaken these incentives and discourage Americans from going into public service.
President Biden and Secretary Cardona, come to the table. There are real problems in the student loan system and Federal financing of higher education. Let's fix them legally through a lasting, bipartisan solution.
I close by encouraging all my colleagues to join me in supporting this Congressional Review Act resolution to prevent this unconstitutional student loan forgiveness scheme. It is unfair to the hundreds of millions of Americans who will bear the burden of paying off hundreds of billions of dollars of someone else's student debt.
I yield the floor.