Floor Statements

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

Mr. President, I rise in support of the Fiscal Year 2009 Omnibus Appropriations Act.

Before I begin, I want to commend Chairman Inouye for his leadership in bringing this bill forward. Over the course of this grueling week of debate, he has done his best to ensure that this process has been civil, open, and transparent. In doing so, he has protected the authority and responsibility of the Congress to shape the funding priorities of this country.

I would be remiss if 1 did not recognize the work of Senator Byrd, who laid the groundwork in the Appropriations Committee last year, winning bipartisan support for nearly all of the bills that comprise this legislation.

Finally, I wish to acknowledge the work of all of the subcommittee chairs, but in particular, Senator Mikulski, for her support in helping address the needs of New England's lobster and groundfish harvesters who continue to be severely impacted by Federal regulations and catch restrictions and face the prospect of losing not only their livelihoods but a way of life. Because she has been such an effective advocate for the watermen of Chesapeake Bay, she has recognized, perhaps more than anyone outside New England, the economic and cultural importance of our fishing communities, as well as the strain they are under.

Mr. President, setting aside the fact that we must pass a bill now in order to avoid a Government shutdown, the fact is this is the right bill for us to pass.

It will, as I indicate, avoid disruption of essential services to the Nation at a time when the American people demand and need the support of a functioning Government.

This legislation complements the American Recovery and Reinvestment Act by funding additional programs that will save and create thousands of jobs. It includes continued investments in transit, highway, and water infrastructure. These kinds of investments are sorely needed throughout the country. In Rhode Island, trucks and other large vehicles must be diverted from a key stretch of the interstate because of concerns about its structural integrity. This is a disruption in commerce that Rhode Island and the region can ill-afford. This package includes funding to help speed the repairs at this important stretch of highway.

The bill will also ensure we are investing in the institutions that are responsible for protecting the public interest, but have fallen down on the job. Indeed, over the course of this decade, we have witnessed the unraveling of essential regulatory agencies, from the Consumer Product Safety Commission to the Food and Drug Administration, often with alarming results. Certainly, the failure to provide adequate resources for these agencies has been a major contributor to their failures. With the supplemental appropriations bill passed last year and continuing with this legislation, we have begun to reverse the effects of years of chronic underfunding. Senator Durbin, in response to the concerns that Senator Dodd, and I raised with respect to funding for the Securities and Exchange Commission, SEC, worked to increase funding for the Commission in this bill. The additional $37 million provided here will give the SEC resources to aggressively investigate and prosecute fraud that cost taxpayers and investors billions of dollars. Coupled with systemic reform within the Commission, this funding will help restore investor confidence and integrity to our markets.

Thanks to the efforts of Senator Harkin, this legislation also continues to invest in our most valuable national resource--our people. As the successor to the late Claiborne Pell, I am gratified that this omnibus bill substantially increases funding for the grant bears his name. This legislation, together with the funding provided in the economic recovery package, will help boost the maximum Pell grant by $619 to $5,350 in fiscal year 2009. It is worth noting how far we have come. Just 2 years ago, the maximum Pell grant was stuck at $4,050--the same level it had been funded at over the previous 4 years.

To supplement Pell grant and other higher education assistance, this legislation maintains funding for the Leveraging Educational Assistance Partnership, leveraging additional need-based grant aid and support services for our neediest students and families. It also boosts funding for the teacher quality enhancement grants by $17 million to improve college teacher preparation programs and ensure that every classroom in America has a high-quality teacher.

The bill increases funding for the state library program under the Library Services and Technology Act to $171.5 million. I have long advocated for this funding level because it is the amount necessary to reach a key goal included in the 2003 reauthorization of the Museum and Library Services Act that I authored to double the minimum State allotment. This additional funding will help libraries respond to the

demand for free access to all types of information and digital and online service. With the economic crisis we are suffering through, libraries have become critical centers for guidance and career services for unemployed workers as they search for jobs, and families as they search for the diversion that a public library can provide in very difficult economic times.

The bill increases funding for the National Institutes of Health by almost $1 billion, which will fund 10,600 new research grants. I strongly supported the historic doubling of NIH funding between 1998 and 2003. Regrettably, since 2003, our investment in science has eroded. As a result, only 24 percent of research projects are currently funded, compared to 32 percent in 1999. I am glad that with the economic recovery bill and this bill, we will reverse that trend and invest in lifesaving research that will result in cures and treatments for debilitating diseases.

The bill increases funding for community health centers by $125 million, which will provide access to an additional 470,000 uninsured Americans. In my State, this program just awarded a grant to a health clinic that was on the verge of shutting its doors. The funding is a lifeline that saved 25 jobs, and could create another 22 jobs within the next 18 months. More important, the center will provide primary health care, mental health counseling, and dental care to those who have lost their jobs, and with them their health insurance, during this economic crisis. This will keep people healthy and reduce health care costs in the future.

The bill increases support for health care workforce programs, which is critical to increase access to primary care and to address the nursing shortage that our country faces.

Lastly, the bill increases funding for immunizations by $30 million, which will provide vaccinations to an additional 15,000 children. Immunizations are one of the most cost-effective ways to improve health and an important component in transforming our health care system to prevent sickness, and not just treat it.

Mr. President, for all of these reasons and more this bill makes the right investments in our country and I urge its passage.

I yield the floor and suggest the absence of a quorum.

Mr. President, I rise to express my support for William Lynn to be confirmed as Deputy Secretary of Defense. Bill has a combination of experience and sound judgment. He worked here on Capitol Hill as a significant policy aide to Senator Kennedy on the Armed Services Committee. He has been the comptroller of the Department of Defense. He has detailed and specific knowledge of the vast programs that will be handed over to the DOD. He has also worked in industry. Frankly, the job of Deputy Secretary of Defense is a place in which all these roads come together--the relationship with Capitol Hill, the relationship with industry, and a detailed understanding and knowledge of the way the Pentagon really works from the inside, not from the outside.

He is uniquely situated to take on these daunting challenges that face us, at a time when we are engaged in two conflicts--Afghanistan and Iraq--and a continuing war against extremists across the globe and at a time when our budget is going to be challenged because of a declining economy in the United States and across the globe. The difficult judgments that have to be made require the expertise and experience Bill Lynn can bring and few can match.

One other thing that I think is particularly compelling about this nomination is the enthusiastic support of it by the Secretary of Defense, Bob Gates. There is no one in Government whom I admire more for their patriotism, their sacrifice to the Nation, and their service. The Secretary of Defense has made it very clear that he believes Bill Lynn is someone whom he not only can work with, but he will aid him immensely in his extraordinary challenges to face the threats I have already illustrated. For me, Bob Gates's testimony and endorsement is compelling evidence that this Senate should confirm Bill Lynn immediately this afternoon.

As I mentioned before, Bill worked in the Department of Defense. He has knowledge of the whole range of programs. That is absolutely critical because he will have to make judgments about these programs to advise the Secretary of Defense.

For his work at the Department of Defense--which has been talked about this afternoon, but this wasn't mentioned--he received the Joint Distinguished Civilian Service Award from the Chairman of the Joint Chiefs of Staff. Again, the military understands not only the important duty he is performing but also, in their own conduct and affairs, understands the values of integrity, character, and commitment to the national interest. He has won awards from the Army, Navy, and Air Force. He also received the 2000 Distinguished Federal Leadership Award from the Association of Government Accountants for his efforts to improve defense accounting practices.

He also gained valuable experience within private industry. Again, Bill is not unique in having an industry background. In fact, the current Deputy Secretary of Defense, Gordon England, came from an industry background. My observation of Secretary England is that his performance has been outstanding, aided by the insight he has had into the multibillion-dollar contracts that industry has with the Department of Defense, insight he has into the decisionmaking in corporate America, insight he has into the way business is done in the defense community. That has aided him, not disabled him, in doing an excellent job. Once again, Bill Lynn comes from a similar background. As Chairman Levin pointed out, the Secretary of the Navy, who I also believe has done an outstanding job, also came from a background in the defense industry.

This goes also to the other issue raised about the waiver. Essentially, Bill Lynn stands in the same shoes, I think, as Gordon England and others--ladies and gentlemen who worked in private industry but recognized when they took the oath to serve the people in this country, they had only one boss--the people of the United States. They are committed to that duty.

Also, I think, frankly, the rules have been followed scrupulously by his predecessors and will be followed by Bill Lynn regarding conflicts with his previous employer. I believe he is going to err on the side of caution when it comes to programs that may be under the purview of his previous employer, or anyone else, because having gotten to know Bill, I understand he is not only a man of intelligence but a man of character.

We have someone uniquely situated to begin to aid the Secretary of Defense in the important challenges before us: How do we create a strategy of redeploying forces successfully out of Iraq? How do we increase our presence in Afghanistan and help military and civilian agencies to deal with that troubling situation? How do we deal with issues of defense modernization? How do we prepare for longer term threats? How do we continue to be active across the globe to, we hope, preempt terrorist activities, whether it be in the Near East, Far East, or anyplace on this globe?

Again, Bill Lynn is superbly qualified to do this. He is a graduate of Dartmouth with a law degree from Cornell Law School, and a master's in Public Affairs from the Woodrow Wilson School at Princeton--again, superb academic preparation and superb life preparation. He is someone who has, again, the character and the insights to render remarkable service to the Department of Defense.

I hope my colleagues will join with me in supporting this nomination, rounding out a team of excellent patriots and professionals in the Department of Defense. I must commend President Obama. He made a very sound, I won't say unusual, but unexpected announcement early on by offering the position of Secretary of Defense to Bob Gates. Bob served with distinction under President Bush. President Obama recognized, first, the quality of this Secretary, Secretary Gates, and also the need for continuity in the operations of the Department of Defense. That was a strong not only signal of continuity but endorsement of the work and effort of thousands and thousands of uniformed military personnel and civilian employees in the Department of Defense. That choice was amplified in his selection of Bill Lynn. Again, the endorsement of Secretary Gates speaks volumes about the team President Obama has put together.

I hope at the conclusion of this debate, we could send a very strong vote of confirmation and confidence in the team that President Obama has assembled--Secretary Gates, hopefully Deputy Secretary Lynn, and the other members--because the tasks before them are, indeed, daunting and because their success will be our success.

Mr. President, I rise in support of the bill that is before us, the American Recovery and Reinvestment Act. It is designed to save jobs, create jobs, and restore a sense of confidence and hope to the people of this country.

We have seen extraordinary deterioration of the economy in this country. This morning, job figures released revealed an additional-- over 600,000 jobless claims. In the last two months, we have lost 500,000 jobs in each of the two preceding months. We have to act decisively, dramatically, and with a scale that will have an effect on the overall economy. That is I think inherent in the proposal President Obama has sent us.

I salute Senator Inouye, the Appropriations Committee chair, and the subcommittee chairmen and Chairman Baucus for their work in bringing this bill to the floor. We have to not only revitalize our economy but restore hope to the American people.

President Obama has set out a very ambitious goal. He wants to weatherize 2 million homes. It is not only to put people to work in America with the skills of craftsmen and craftswomen, but in the future it is going to save us money. So this is not only an immediate response to a problem, but it is a long-term increase in our productivity and our ability to be competitive in a very difficult world economy.

I have also introduced an amendment which I will not call up, but it would increase the weatherization funds and the LIHEAP funds and other funds, but I hope in conference we can raise those totals.

We need these investments. This is the most perilous economic situation a President has ever faced since the 1930s. This is the inheritance of 8 years of poor policy. This is the inheritance of a huge increase in our national debt in the last 8 years. Under President Bush we have seen our national debt explode. That is the legacy that is facing the next generation of Americans today, and unless we revive this economy, this situation will deteriorate, it will not stabilize, and it will not grow. That is our challenge. It is a more difficult challenge today than it has been at any time in the last several decades.

This is not a cyclical downturn. This is not an imbalance of supply and demand. This is not a situation where it will work itself out. We have to take decisive action, and that is a big part of President Obama's plan. Our crisis today has its roots in the last 8 years of mismanagement: an economic doctrine of tax cuts funded by deficit spending, skewed toward the rich, not toward working Americans; inadequate supervision of our financial markets; a lack of adequate risk assessment by financial institutions throughout not only the United States but the world; and the very difficult and costly and unfunded war in Iraq and operations in Afghanistan.

We have to focus our attention on the present, but it is important to understand how we got here. President Bush inherited a $236 billion Federal budget surplus. His first order of business was to cut taxes which benefitted proportionately the wealthiest Americans, enacting three major tax cuts between 2001 and 2003. These tax cuts added to the national deficit, reduced our capacity to make much needed investments in infrastructure, education, and health care, and exacerbated income inequality. The median family income actually fell $2,000 between the year 2000 and the year 2007. Families lost $2,000 of their income, despite strong productivity and growth. Americans were working harder, being more innovative, more creative, and yet average families were losing income.

In terms of jobs creation, the 2003 tax cut actually reduced job growth below the estimates the President was using to justify his tax proposals. As the wealthy thrived and corporate earnings skyrocketed, capital investments did not keep pace. Instead, many corporations decided to dole out handsome salaries and use their profits to buy back stock in pursuit of short-term boosts to share prices. This made the options these executives enjoyed that much more valuable.

Corporate profits grew by 66 percent between 2000 to 2006, despite the fact that annual national investment in nonresidential structures-- largely commercial structures such as factories and office buildings-- fell by $130 billion or more than 30 percent. Overall investment in buildings, equipment, and software grew by less than 6 percent.

Not only is there a fiscal deficit, there has been an investment deficit in the United States in the last 8 years.

Over the past year, we have witnessed the long-term consequences of these failed economic policies. Since the start of the recession, in December 2007, the number of unemployed individuals has grown by 3.6 million, and the national unemployment rate has risen to 7.2 percent.

In Rhode Island, it is particularly difficult. We have an unemployment rate of 10 percent, second only to Michigan. We have lost a huge number of jobs. In fact, we have also seen a complementary increase in foreclosures; as people lose their jobs, their ability to pay their mortgages declines.

The lack of oversight in the financial markets in many ways fueled the subprime mortgage crisis and led to the failings of Wall Street. We saw rating agencies deficient and negligent in judgment and lacking independence, which in turn led to a poor assessment of bond rating risk. Investment banks took advantage of this system reaping windfall profits through the creation of complex financial instruments, such as collateralized debt obligations, which hid underlying risk. All of this financial engineering did not provide opportunities and hope for working Americans.

Throughout this process, where were the principal regulatory agencies, such as the Securities and Exchange Commission? Simply put, they were asleep at the wheel.

The environment of lax oversight and poor lending practices created a bubble in housing prices. The collapse of that bubble resulted in home loan defaults and falling housing values. The companies that owned these assets saw their value plummet. All of this is contributing to the dilemma and the crisis we see today. We are in a very dangerous situation, with weak housing markets, stagnant wages, impaired consumer spending, which leads to further erosion of housing prices and further erosion of the economy. It is a vicious cycle and we have to break that cycle. We have to do it with this legislation.

We have seen a situation where Americans have to put off essential and important purchases, such as medicine, and they may have to defer education for their children. They have to make these very difficult choices. We have to make difficult choices. Spending on durable items, such as cars, appliances,

and furniture has plunged at a rate of 22.4 percent last quarter.

We have to get the economy moving again. We are in a situation where this is not only our problem, it is an international problem. The global economy is in uncharted waters. According to the IMF, in 2009, economic growth across the world will fall to 0.5 percent from 3.4 percent in 2008--the lowest rate since World War II. It is a worldwide phenomenon.

In response, we have to act quickly and decisively to pass this legislation. It is estimated that with the plan President Obama has suggested, we can provide 13,000 additional jobs in Rhode Island. That will be good news.

With banks failing, automakers on the verge of bankruptcy, and pervasive unemployment, the American people are rightfully asking us to respond, and do so quickly and decisively. We have to also recognize that this action is integrally related to the financial markets, the banking system, the financial system, and without increased consumer demand and increased consumer confidence they will fall further and require additional help. In order to provide support to financial institutions, in addition to the TARP funds, we have to pass this legislation to get people back into the marketplace. We also have to recognize that as we get the economy moving, we have to modernize our regulatory system. Our regulators need to have the tools and resources to get the job done. We have seen the problems with the unregulated hedge funds, private equity concerns, and the lack of enforcement by the Securities and Exchange Commission. That has to be changed. The American people will not tolerate business as usual. The first act is to get our economy moving forward. This legislation proposed by the President will begin to do that.

The Congressional Budget Office estimates that 78 percent of the funding in this bill could be spent in the next 18 months. This is timely; it is responsive.

According to JPMorgan Chase economist Michael Feroli, the Recovery Act would add about 4 percentage points to the second and third quarter GDP growth. He recognizes that a lot of infrastructure projects we are proposing will take some months to get off the ground. The first major input will be the tax breaks, transfer payments, and State and local government aid. We will see a growth in terms of the GDP. We will also see the effect of this program taking hold in our economy. It is necessary to pursue this approach.

This bill gets the most ``bang for the buck,'' with funding to modernize unemployment insurance, increase unemployment insurance benefits, and extend the existing Federal unemployment insurance extensions on the books to cover those recently laid off. It will provide immediate help to unemployed Americans and provide an immediate boost to consumer spending.

Tax cuts comprise about one-third of this legislation. But unlike the Bush tax cuts, this legislation provides targeted relief to 95 percent of working Americans. An estimated 470,000 Rhode Islanders alone would receive tax relief. This is all extremely important.

We also are going to make improvements to a whole range of infrastructure--roads, bridges, highways, public housing. All of these programs will receive additional attention. We are going to bolster State and local governments, because if we don't provide them additional resources, they will begin to cut back vital programs and it will be contradicting what we are trying to do at the Federal level. If they cut back, that won't help us move the economy forward. This assistance to State and local governments is important.

Rhode Island is prepared to receive, under this legislation, $220 million to help local school systems and communities pay for critical services, $46 million to improve local drinking water and sewer systems, and $132 million for road and bridge repairs. Right now, regarding the major interstate highways through Rhode Island all tractor-trailers are required to detour, get off the road, and drive miles out of the way through local streets and then get back on the highway; and at the same time it is required that the State provide State police officers in both directions 24 hours a day to ensure that they do that. That is inefficient. That is a waste of resources. If we can fix those roads and bridges, we can provide for a more efficient use of our highways and put the money more appropriately to generate jobs and productivity. That is one example.

Also, there is going to be strict accountability and transparency in this proposal. Part of this legislation will provide for hiring additional auditors to track where the funds are going. There will be public acknowledgment of what projects are funded and the process of the projects.

This legislation is absolutely essential. We have to do it. We have to move decisively, quickly, and I hope we can do that.

I yield the floor.

Mr. President, I thank the chairman of the Finance Committee, Senator Baucus, for his inclusion of an important provision regarding State eligibility for the FMAP increase in this bill. If it were not for this provision, my State of Rhode Island may not have been eligible for the relief because a State law effective on July 1, 2008 changed eligibility, but the change was not implemented until the Centers for Medicare and Medicaid Services, CMS, approved a waiver on October 1, 2008. The timing of the State's decision, not the approval date by CMS, should be the controlling factor.

I ask the chairman, does section 5001(f)(1)(C)(ii) of the bill specifically address this situation?

I agree and again thank the chairman.

emr technology

Mr. President, today I introduce, along with Senators Dodd, Kerry, Schumer, and Stabenow, the Real Estate Mortgage Investment Conduit, REMIC, Improvement Act. This legislation could provide one of the keys to solving our national foreclosure crisis by unlocking mortgage securitization trusts so that more homeowners can stay in their homes.

In my own state of Rhode Island, 7.30 percent of all outstanding home loans are delinquent and 5.33 percent of all home loans are in the foreclosure process. This is the 10th highest foreclosure rate in the Nation, and the highest in New England. I have heard story after story of how difficult it is to get a loan modified or restructured if it is part of a mortgage securitization pool. As we have learned, part of the reason we are in the worst housing crisis since the Depression is that Wall Street firms packaged mortgages into pools and then sold different tranches of these pools to investors from all over the world. This diverse and convoluted ownership structure has made it difficult to get investor approval to modify or restructure them. Unlike in the movie ``It's a Wonderful Life,'' most families can no longer walk into their local bank to talk to George Bailey about modifying or restructuring their loan.

The Emergency Economic Stabilization Act of 2008 required the Treasury Department to use its new authorities to incentivize servicers toward more loan restructurings. However, it has become clear that additional legislation is needed to free servicers of these loan pools from conflicting requirements regarding modifications and provide them with the ability to sell mortgages to Treasury for foreclosure avoidance.

Many servicers, managing pools of loans for investors, are constrained by the trust agreements from modifying loans to a level that families can afford to pay or from selling the underlying

mortgage loans. In other cases, servicers must obtain the approval of a significant number of the trust's beneficiaries or third parties in order to make changes to how loans within the pool are handled. However, the trust agreements also provide that servicers must amend the agreements if doing so would be helpful or necessary to stay in compliance with tax rules under the REMIC statute; REMIC status frees these securitization trusts from taxation at the entity level and therefore provides important benefits to its investors.

Under the REMIC Improvement Act, in order to keep their preferred tax status under the REMIC provisions of the Internal Revenue Code, servicers would need to modify their trust agreements to remove artificial restrictions that keep them from modifying loans that provide a greater return to investors as a whole than foreclosing would, and keep families in their homes to prevent entirely unnecessary foreclosures at the same time. This is a practical way for servicers to modify loans without undue fear of legal sanctions. This also would allow servicers to sell loans to Treasury for restructuring without having to obtain an affirmative response by a significant number of the beneficiaries of the trust if it was for the good of the overall trust. Participation in any Treasury program would be voluntary, but some of the key legal impediments to participation would be removed.

Additionally, the Treasury Department has not put in place a loan modification program, even after Congress gave it the authority to do so in the Emergency Economic Stabilization Act. Many experts believe such a program would be helpful in helping resolve the current housing crisis. The REMIC Improvement Act will ensure that Treasury uses its authority to set up a program to achieve broad-scale modifications and, where necessary, dispositions of foreclosed property.

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

Mr. President, today I introduce, along with Senators Dodd, Kerry, Schumer, and Stabenow, the Real Estate Mortgage Investment Conduit, REMIC, Improvement Act. This legislation could provide one of the keys to solving our national foreclosure crisis by unlocking mortgage securitization trusts so that more homeowners can stay in their homes.

In my own state of Rhode Island, 7.30 percent of all outstanding home loans are delinquent and 5.33 percent of all home loans are in the foreclosure process. This is the 10th highest foreclosure rate in the Nation, and the highest in New England. I have heard story after story of how difficult it is to get a loan modified or restructured if it is part of a mortgage securitization pool. As we have learned, part of the reason we are in the worst housing crisis since the Depression is that Wall Street firms packaged mortgages into pools and then sold different tranches of these pools to investors from all over the world. This diverse and convoluted ownership structure has made it difficult to get investor approval to modify or restructure them. Unlike in the movie ``It's a Wonderful Life,'' most families can no longer walk into their local bank to talk to George Bailey about modifying or restructuring their loan.

The Emergency Economic Stabilization Act of 2008 required the Treasury Department to use its new authorities to incentivize servicers toward more loan restructurings. However, it has become clear that additional legislation is needed to free servicers of these loan pools from conflicting requirements regarding modifications and provide them with the ability to sell mortgages to Treasury for foreclosure avoidance.

Many servicers, managing pools of loans for investors, are constrained by the trust agreements from modifying loans to a level that families can afford to pay or from selling the underlying

mortgage loans. In other cases, servicers must obtain the approval of a significant number of the trust's beneficiaries or third parties in order to make changes to how loans within the pool are handled. However, the trust agreements also provide that servicers must amend the agreements if doing so would be helpful or necessary to stay in compliance with tax rules under the REMIC statute; REMIC status frees these securitization trusts from taxation at the entity level and therefore provides important benefits to its investors.

Under the REMIC Improvement Act, in order to keep their preferred tax status under the REMIC provisions of the Internal Revenue Code, servicers would need to modify their trust agreements to remove artificial restrictions that keep them from modifying loans that provide a greater return to investors as a whole than foreclosing would, and keep families in their homes to prevent entirely unnecessary foreclosures at the same time. This is a practical way for servicers to modify loans without undue fear of legal sanctions. This also would allow servicers to sell loans to Treasury for restructuring without having to obtain an affirmative response by a significant number of the beneficiaries of the trust if it was for the good of the overall trust. Participation in any Treasury program would be voluntary, but some of the key legal impediments to participation would be removed.

Additionally, the Treasury Department has not put in place a loan modification program, even after Congress gave it the authority to do so in the Emergency Economic Stabilization Act. Many experts believe such a program would be helpful in helping resolve the current housing crisis. The REMIC Improvement Act will ensure that Treasury uses its authority to set up a program to achieve broad-scale modifications and, where necessary, dispositions of foreclosed property.

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

Madam President, I don't know if we are going back and forth. I know Senator Murkowski is here. I have about 5 or 6 minutes.

I rise in support of the legislation before us to renew and improve the Children's Health Insurance Program. I begin by commending Chairman Baucus for his work on this legislation, not just this year, but so many years before. We brought this bill to the floor in 2007. We have had successful votes, a tribute to the chairman's leadership. I know at the same time he is working on the stimulus package, which is critically important to our economy. I personally thank him and commend him for all his efforts.

This bill is virtually identical to the legislation that I previously voted for on two occasions. Indeed, I voted, along with a large bipartisan majority, for this legislation in 2007. So I am hopeful Congress will act swiftly in a bipartisan manner to present this bill to President Obama for his signature. Uninsured children have already waited for that moment for far too long.

This bill invests $32.8 billion to extend and expand CHIP through fiscal year 2013. According to the Congressional Budget Office, it will preserve coverage for 6.7 million children and expand coverage to an additional 4.1 million uninsured children. In addition, the bill facilitates enrollment and improves benefits by requiring dental coverage and mental health parity.

For my State of Rhode Island, this bill is absolutely critical because it would end the persistent funding shortfalls that have required 11th hour stopgap measures. Over the years, I have been able to secure $77 million in additional funding to cover these shortfalls, but these efforts at the very last minute are not something that can be sustained indefinitely.

This bill allocates funding based on actual spending and provides a contingency fund for shortfalls. As a result, Rhode Island's allotment, the amount of Federal funding available for the State to draw down, will increase from $13.2 million to $69.5 million. This is the highest percentage increase of any State. This will preserve coverage for about 12,500 children enrolled in RIte Care, which is our Children's Health Insurance Program, and allow the State to expand SCHIP coverage.

With the current economic crisis, this bill could not be more timely. As parents lose their jobs, they and their children will lose their health coverage. Nationwide, the rise in unemployment has caused 1.6 million children to lose employer-based health insurance. In Rhode Island, the unemployment rate is now in double digits at 10 percent. Behind this number are real families who are struggling to pay their medical bills and whose children may be forced to forgo doctor visits, medicines, and immunizations they need to lead healthy, productive lives.

Recently, Rhode Island was forced to make the very difficult choice of dropping coverage for 1,300 children who are legally here because there was no Federal match. For many years, the State had provided coverage for these children using State funds alone. This bill could result in expanded coverage by providing Federal funds for these children who are legally here within the United States.

It also includes important provisions to increase enrollment of people who

are eligible for both the CHIP funding and Medicaid funding. The bill allows States to use Social Security numbers to verify citizenship, provides grants to States for outreach activities, and provides bonus payments for the cost of increased enrollment in Medicaid.

However, I must point out, Rhode Island may not be able to fully benefit from these latest provisions as they relate to Medicaid. In the waning hours of the Bush administration, the State agreed to an unprecedented cap on total spending. The cap is based on projections that do not factor in potential increases in Medicaid enrollment resulting from this legislation. As a result, the cap could prevent the State from taking up the option to cover legal immigrant children and pregnant women and could discourage the State from renewing its outreach efforts, even though these were longstanding policies in the State prior to the economic downturn. I have strong concerns about the cap because there are too many unknowns about how it would interact with both this bill and other efforts to expand Medicaid coverage.

States are struggling to grapple with rising health care costs, enrollment is increasing, and indeed the Federal Government, businesses, and families are also burdened by rising costs and the absence of any discernible health care system. It is clear there can be no economic recovery in the long term unless we at last confront the critical challenge of comprehensive health reform. The time has come to guarantee affordable, quality health care to all Americans. This bill is an important step forward and a downpayment on this effort.

Let me finally emphasize how critical this bill is to the children's health care program. It will dramatically increase the share that Rhode Island is entitled to and it will prevent the eleventh-hour scramble to fund shortfalls in the State. On the Medicaid side, I hope the State is able to use these additional authorities to enroll more children who could, in fact, receive help from this bill.

I yield the floor.

Thank you, Madam President. And I thank Senator Mikulski.

First, let me commend Senator Mikulski for her extraordinary leadership on this legislation, along with Senator Harkin and also Senator Kennedy, who have been a driving force to ensure this legislation came to the floor and is ready for passage.

I strongly support the Lilly Ledbetter Fair Pay Act of 2009. This bill is about ensuring that all Americans are protected from pay discrimination and treated fairly in the workplace, particularly during these tough economic times. After 8 years of enduring an economy rigged to benefit only the wealthy few, it is about time we reached out to try to help those struggling paycheck to paycheck, and this legislation will do that.

As an original cosponsor of this legislation, I am pleased this bill seeks to address and correct the Supreme Court's decision in Ledbetter v. Goodyear Tire & Rubber Co. It is a decision from 2007 that required employees to file a pay discrimination claim within 180 days of when their employer first began to discriminate, even if the discrimination continued after that 180-day period.

Under the Ledbetter ruling, a worker could face longstanding pay discrimination and yet be shortchanged of a remedy simply because they did not discover the discrimination within 180 days of their initial discriminatory paycheck.

The Ledbetter decision overturned established precedent in courts of appeals across the country and the policy of the Equal Employment Opportunity Commission under both Democratic and Republican administrations. In fact, it almost defies common sense and logic. Most employees, if they have a pay dispute, hope it will be resolved internally, and they will give their employer the benefit of the doubt probably for more than 180 days until it becomes readily apparent that this is systematic and discriminatory.

The legislation we are considering today reverses this erroneous finding but also restores a sense of common sense into the workplace. It returns the law to the pre-Ledbetter precedent by clarifying that each discriminatory paycheck restarts that 180-day period. As such, this bill does not modify the time limit for filing a claim or the 2- year limit on back pay but reestablishes when the statute of limitations begins to run.

This allows workers to demonstrate and detect a pattern or cumulative series of employer decisions or acts showing ongoing pay discrimination rather than simply reacting to any perceived notion of discrimination to fall within this 180-day period. As Justice Ginsburg noted in her Ledbetter dissent, such a law is ``more in tune with the realities of the workplace.'' I entirely agree.

The Supreme Court majority failed to recognize these commonsense realities, including that pay disparities typically occur incrementally and develop slowly over time, and they are not easily identifiable and are often kept hidden by employers. Many employees generally do not have knowledge of their fellow coworkers' salaries or how decisions on pay are made.

Our Nation has certainly made progress on ensuring fairness, justice, and equality in the workplace. However, we know there are still significant barriers to overcome in closing the pay gap and making certain that an individual's gender, race, religion, national origin, disability, and age are not an impediment to their economic and employment growth and prosperity. The Lilly Ledbetter Fair Pay Act of 2009 is one important step toward achieving this goal.

Again, let me thank Senator Mikulski for leading the charge on this bill and, again, acknowledge the longstanding efforts of Chairman Kennedy to seek passage of this and other legislative efforts to help workers. One of the great dilemmas we face today ensuring that Americans who are working--particularly wage earners--have sufficient income so they can provide for their families and for their future.

Because of the flat and, in some cases, the receding income of working Americans over the last 8 years, we have seen a situation where they have to resort to their credit cards, where they have to put off important purchases, deny themselves opportunities, scale down access to colleges for their children because their income has not grown.

The great challenge--and it is not just an economic challenge but, I believe, it is a moral challenge--is to ensure that the income of every level of America grows; not just the very wealthy, but every level of Americans has a chance to use their talents and see those talents rewarded by increasing income, we hope, each year. This legislation is part of that effort. But much more must be done.

I strongly urge my colleagues to support this bill and to oppose any amendments that seek to dilute its intent.

Madam President, I yield the remainder of my time.

Mr. President, with respect to the nominations confirmed today, I ask unanimous consent that the President be immediately notified of the Senate's action and that the Senate return to legislative session.

Mr. President, I ask unanimous consent that when the Senate completes its business today, it stand in adjournment until 12 noon tomorrow, Wednesday, January 21; that following the prayer and pledge, the Journal of proceedings be approved to date, the morning hour be deemed expired, the time for the two leaders be reserved for their use later in the day, and the Senate proceed to executive session as under the previous order.

Mr. President, tomorrow the Senate will consider the nomination of Hillary Clinton to be Secretary of State, with up to 3 hours for debate prior to a vote. Under a previous order, the Senate will recess for the weekly caucus luncheons from 12:45 until 2:15 p.m. Senators should expect a rollcall vote on confirmation of the Clinton nomination around 4:30 p.m., if all time is used.

Following executive session, the Senate will resume consideration of S. 181, the Lilly Ledbetter Fair Pay Act. Additional rollcall votes are possible throughout the afternoon in relation to the Lilly Ledbetter bill.

If there is no further business to come before the Senate, I ask unanimous consent it adjourn under the previous order.

Mr. President, I, too, rise to commend and thank the Senator from Colorado for his extraordinary service to the Senate, to the people of Colorado, and to the United States of America. He is a consummate gentleman. He brought to this Chamber great judgment and great passion to provide opportunity for all our citizens. He also brought the distinctive values of his State of Colorado--a rough sense of individuality, coupled with a commitment to building community; not just an isolated group of people but a community of citizens--and these values have been extraordinarily important to us. His friendship and his leadership have been extraordinarily important to all of us.

I see the Presiding Officer is my colleague and friend from Rhode Island, and as he pointed out a few days ago, they were both attorneys general together: Senator Whitehouse of Rhode Island, of course, and Senator Salazar for the State of Colorado. But we were all together in Rhode Island, and I was reflecting, Ken, I don't know what the Department of the Interior has to do with Rhode Island. OK, the Outer Continental Shelf. There is a reason for my tribute.

But we were there together at an event, and Senator Pell, our dear colleague, came. He was frail and ailing, but immediately Senator Salazar rushed over to him to say: Thank you, Senator Pell. Because as he told us, the fact is he and his brother, now in the Congress, and other family members were able to go to college because of the Pell grant. That spirit of opportunity, of giving Americans a chance, and then standing back and letting them do remarkable things, embodied the Pell grant and so many other programs. That is what not only prepared you for the Senate but gave you the vision to do all you have done to help your constituents and the people of this country to see the opportunity which is America.

You and your family have been in Colorado for five generations. I feel like a recent arrival. My folks got here from Ireland in 1850. So from a new American, a new American to an old established family: Thank you for your service; thank you for your friendship. Good luck, Mr. Secretary.

I yield the floor.

Mr. President, I thank you.

I welcome and commend Senator Kaufman as he succeeds Senator Joe Biden.

I particularly want to say a few words about Joe Biden. He has had an extraordinary career in the Senate, and he is going to be an extraordinary asset for President-elect Barack Obama.

Senator Obama, the President-elect, said very clearly why he chose Joe Biden. He said that when the tough decisions come, and they will come quickly and often, Joe Biden is the guy he wants in the room with him. And I think that choice was extraordinarily inspired because no one can bring the breadth of knowledge and experience, not only with respect to the Senate but with respect to domestic policy and indeed international policy, as Joe Biden.

The other thing Joe brings to this great challenge of the country is his profound decency and sense of fairness and his commitment to make sure America is still a place of opportunity for all citizens. Those values were shaped in Scranton, PA, where he grew up. They were shaped by his mother and father. His mother, Jean Finnegan Biden, is still an inspiration to him today, and I am sure one of the reasons he is the guy who should be in the room with the President is because if he needs advice, his mother is still there, and I think that is something he cherishes.

Joe has served in this body for many years. He was the author of the Violence Against Women Act to ensure that our criminal justice system, our system of law, recognized the particular dangers posed to women. He was the chief architect of the COPS bill, which put hundreds of thousands of police officers on the street, recognizing that the basic responsibility of government is to provide safety and security to its citizens. There are a lot of people who talked about that, but Joe recognized that if there are more police on the streets, that would happen, and indeed it has. We have seen that statistic over the last few years.

As the preeminent expert on foreign relations, he has traveled the world and brought his wisdom to foreign leaders but also sought their candid advice with respect to our leadership in the world, and he will continue to do that. He has just concluded a trip to Iraq and Afghanistan. I had hoped to be with him, but duties here prevented me. But that is typical of Joe--hands-on, go to the source of the issue, examine the problem, and move forward.

He has had an illustrious career. Beyond his success as a Senator, his success as a master of foreign relations, a leader in terms of domestic policy, has been his extraordinary family: his wife Jill, an extraordinarily gifted professional in her own right; Ashley, Hunter, and Beau; and I know the five grandchildren are particular joys to Joe. We are particularly respectful that today his son Beau serves in the uniform of the United States overseas and is someone Joe thinks of constantly. Once again, in those tough decisions in the White House, I think Joe will have a special equity because his son serves along with the sons and daughters of other Americans, and he will recognize that when they make difficult decisions regarding the deployment of our forces.

It has been an honor to serve with him. It is an honor to call him a colleague and a friend.

Hillary Clinton

Mr. President, I also wish to say a few words about our other colleague who is departing, Senator Hillary Clinton, an extraordinarily gifted lady. I had the privilege of traveling with her to Afghanistan and Iraq in 2003. I was impressed with her knowledge of international affairs and her personal knowledge of so many leaders; it was a first- name basis. So I think we have, in the presence of Hillary Rodham Clinton, an extraordinary asset to the State Department.

Senator Obama made a wise choice. She brings not only great experience with great recognition but a tenacious attitude toward work and service. She is one of the hardest working people I have ever met. All of these skills are going to be important at this moment in our history. We have to reform and transform, indeed, our national security posture away from the unilateral military force, which I think was the wrong approach of this administration, to a much more nuanced, broader embrace of diplomacy, backed up by a strong military force. Hillary Clinton can and will do that, working together with President-elect Barack Obama and Vice President-elect Joe Biden.

She has been a friend to me, she has helped me, she has inspired me, and indeed, perhaps the true test, she has taught me a great deal about not only substantive issues but about how one conducts one's self to a higher standard. I believe she will continue to maintain those standards as she goes forward.

So we are losing several dear colleagues--Ken Salazar, Joe Biden, and Hillary Rodham Clinton. The good news is that America still has their extraordinarily valuable services.

I yield the floor.

I ask unanimous consent that the order for the quorum call be rescinded.