Floor Statements

Madam Speaker, yesterday, March 16, 2009, the Gentleman from Oregon, Mr. Schrader, and I introduced legislation, H.R. 1509, the Home Office Deduction Simplification Act. This legislation, which was H.R. 6214 in the 110th Congress, is designed to reduce the complexity of the tax code and provide Americans with the ability to elect to take a standard deduction in the amount of $1,500 for home office expenses.

In 1976, Congress enacted Section 280A of the Internal Revenue Code, which as amended in 1997, provides the limited circumstances in which an individual or an S corporation may take a deduction for expenses related to an office in the home. Generally, deductions are limited to those parts of a home that are exclusively used on a regular basis as a principal place of business or to meet with patients, clients, or customers.

As a result of technological advancements and other significant changes in our economy over the past 40 years, many more small businesses are now able to effectively operate out of the home. Not surprisingly, there has been a growth in the use of home offices; according to the Internal Revenue Service (IRS), the home office deduction was taken on 3.3 million self-employed business returns in tax year 2006, an increase of 700,000 from tax year 2002.

Nonetheless, the IRS reports that ``a substantial number of taxpayers with home office expenses are not claiming them on tax returns.'' According to the IRS, the deduction might be underutilized because ``understanding and complying with the rules for deducting home office expenses can be difficult for small business and self-employed taxpayers.'' This is borne out by an IRS analysis that found almost half of the taxpayers claiming a home office deduction made errors.

Small businesses are unquestionably the backbone of our nation's economy. In fact,

some 27 million American small businesses represent more than 99 percent of all employers, provide 51% of private sector employment and 45% of its payroll, and produce approximately 50% of the nation's private, nonfarm GDP. I could not overstate the importance of the nearly 66,000 small businesses I have the privilege of representing to the economy of Northern and Central New York.

The importance of this measure to small businesses is evident by the fact that it is supported by a coalition that includes the Alliance of Visual Artists, American Homeowners Grassroots Alliance, Associated Builders & Contractors (ABC), Association for Enterprise Opportunity (AEO), National Association for the Self-Employed (NASE), National Federation of Independent Business (NFIB), National Small Business Association (NSBA), Professional Photographers of America, Small Business & Entrepreneurship Council, Small Business Legislative Council (SBLC), and Women Impacting Public Policy (WIPP). The Home Office Deduction Simplification Act is also supported by the SBA Office of Advocacy.

Given the importance of small businesses to our economy, it is imperative that Congress act when presented with opportunities to reduce or remove costly regulatory burdens. The current home office deduction presents such an opportunity, which Congress can reduce, by enacting the Home Office Deduction Simplification Act. Accordingly, I ask my colleagues to join with Mr. Schrader and me to enact this important measure.

Madam Speaker, pursuant to the House Republican standards on earmarks, I am submitting the following information for publication in the Congressional Record regarding earmarks I received as part of H.R. 1105 FY 2009 Omnibus Appropriations Act:

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Environmental Programs and Management

Legal Name of Requesting Entity: National Rural Water Association

Address of Requesting Entity: 2915 South 13th Street, Duncan OK 73533.

Description: Provide an earmark of $11,500,000 to help ensure that small communities operate safe, clean water supplies and comply with federal environmental mandates. I certify that I have no financial interest in this project

Madam Speaker, I rise today as a proud cosponsor of the Healthcare Enhancement for Local Public Servants Act of 2009, or HELPS II, Act. I appreciate the work my friend, Mr. Crowley, has done to develop this important legislation, which would make health care and Long Term Care (LTC) premiums more affordable for retired public servants.

Currently, active American workers who participate in a cafeteria plan option known as ``premium conversion'' may elect to reduce their taxable wages by having their share of health insurance premiums paid on a pretax basis. Such an arrangement reduces both income and employment taxes. Since October 2000, this option has been available to federal employees who participate in the Federal Employees Health Benefits Program (FEHBP). This option is also available to private sector and state or local government employees with their employers' permission.

Generally, premium conversion is not available to retirees. This is so because of an Internal Revenue Service (IRS) determination that distributions from qualified retirement plans are always subject to taxes, aside from several minor exceptions. Consequently, retirees are precluded from recasting pension payments as pretax income and thus denied this tax benefit.

The Pension Protection Act of 2006 (P.L. 109-280) allows certain retired public safety officers to pay up to $3,000 of qualified health insurance and/or Long Term Care (LTC) insurance premiums from their pensions on a pretax basis. This tax advantage, which makes health care more affordable, has become increasingly important as health insurance premiums have increased in recent years.

While I support making premium conversion available to all Americans, a good first step would be to make it available to retired state and local public employees through the enactment of the Healthcare Enhancement for Local Public Servants Act of 2009. Accordingly, I look forward to working with the Gentleman from New York to enact this measure.

Madam Speaker, on March 9, 2009, I introduced H.R. 1400, a bill designed to further combat and reduce underage smoking. Specifically, this measure would make cigarettes and certain other tobacco products nonmailable through the United States Postal Service.

This bill is necessary because the United States Postal Service is being used to facilitate the delivery of cigarettes that were purchased illegally on the Internet by underage minors. Unfortunately, those existing safeguards designed to prevent minors from purchasing cigarettes online have proven ineffective. For example, although 80 percent of cigarette vendor websites allege that transactions with minors will not be completed, there is little in place to enforce this policy. In fact, one study found that only seven percent of online vendors require driver's license information, while more than 50 percent simply require customers to verify their age by selecting an ``I am over 18 years old'' option. These and other safeguards clearly did not deter the 50,000 minors estimated, based on U.S. Centers for Disease Control and Prevention data, to have purchased cigarettes online in 2003. As Internet commerce expands, the number of persons (including minors) purchasing cigarettes online is expected to increase dramatically.

The problem H.R. 1400 is designed to address is illustrated by the disturbing results from Internet ``sting'' operations conducted by over 15 states in recent years. In New York State, 24 out of 26 websites sold cigarettes to minors as young as nine years old. Moreover, in 2005, a group of Upstate New York teenagers in my Congressional District conducted a similar experiment in collaboration with law enforcement. Half of their orders were successfully delivered, and, unfortunately, 90 percent were delivered via the United States Postal Service.

In addition to helping curb the usage of tobacco products among minors, H.R. 1400 would end tax evasions that hurt our States and local governments. These revenues are not insignificant. Rather, annual tax revenues estimated at $1.4 billion are being lost; in 2005, New York State alone lost $400 million.

Madam Speaker, Congress has the opportunity to combat underage tobacco use and tax evasion by enacting H.R. 1400. Accordingly, I ask my colleagues to work with me to enact this important measure.

Madam Speaker, I rise today to introduce the Maple Tapping Access Program (TAP) Act, which is designed to increase maple syrup production in the United States. It would also further economic development in rural areas like Northern and Central New York, which I am honored to represent.

The United States has the potential to greatly increase its maple syrup production. In fact, there are nearly two billion potential taps dispersed across 20 states. However, despite this wealth of resources, the United States currently imports four times as much maple syrup as is produced domestically. In fact, we only tap 7.5 million or one in every 250 maple trees. According to Cornell University, if the United States' maple industry increased its rate to just 2.1%, 42 million more trees could be tapped. This increased production would have an annual economic impact in excess of $300 million.

In an effort to enhance U.S. maple syrup production, the Maple Tapping Access Program Act would direct the U.S. Secretary of Agriculture to establish a public access program, for which $20 million would be authorized annually. Through this program, State and tribal governments could apply for competitive grants to design and implement programs to encourage landowners to provide access to their land for maple tapping activities.

My friend, Mr. Schumer, is introducing the companion measure in the Senate. It is important to note that my legislation differs slightly. Specifically, my bill clarifies that participating landowners may provide access to their land for maple tapping purposes voluntarily or by lease or other means. Additionally, my version of this measure would allow states and tribes to use grant funds to encourage landowners to initiate or expand maple tapping activities on their land.

The Maple Tapping Access Program Act would provide the impetus necessary to stimulate an underdeveloped American maple industry and foster much-needed rural economic development. Accordingly, I ask my colleagues to join with me to enact this important measure.

Madam Speaker, pursuant to the House Republican standards on earmarks, I am submitting the following information for publication in the Congressional Record regarding earmarks I received as part of H.R. 1105, FY 2009 Omnibus Appropriations Act:

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Institute of Museum & Library Services: Museums & Libraries

Legal Name of Requesting Entity: Adirondack Museum

Address of Requesting Entity: Route 28N & 30, P.O. Box 99 Blue Mountain Lake, NY 12812.

Description: Provide an earmark of $95,000 to the Adirondack Museum for the construction of an exhibit to highlight and preserve the history and impact of the mining industry on the Adirondack region.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Health & Human Services: HRSA Health Facilities and Services

Legal Name of Requesting Entity: Samaritan Medical Center

Address of Requesting Entity: 830 Washington Street, NY 13601.

Description: Provide an earmark in the amount of $190,000 for the construction and renovation of a new healthcare facility to better meet the needs of the nearby fast growing military and civilian population.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Health & Human Services: HRSA Health Facilities and Services

Legal Name of Requesting Entity: Oneida Healthcare Center

Address of Requesting Entity: 321 Genesee Street, Oneida, NY 13421

Description: Provide an earmark in the amount of $285,000 for the demolition and renovation of a new acute care facility, and to help fund the purchase of movable equipment at the Oneida Healthcare Center.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Health & Human Services: HRSA Health Facilities and Services

Legal Name of Requesting Entity: Carthage Family Wellness Clinic

Address of Requesting Entity: 120 South Mechanic Street, Carthage, NY 13619.

Description: Provide an earmark in the amount of $190,000 for the construction of a medical office building.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Health & Human Services: HRSA Health Facilities and Services

Legal Name of Requesting Entity: Canton-Potsdam Hospital

Address of Requesting Entity: 50 Leroy Street, Potsdam, NY 13676.

Description: Provide an earmark in the amount of $143,000 for the expansion of the

current hospital complex to accommodate a new Intensive Care Unit.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Health & Human Services: HRSA Health Facilities and Services

Legal Name of Requesting Entity: Elizabethtown Community Hospital

Address of Requesting Entity: 75 Park Street, Elizabethtown, NY 12932.

Description: Provide an earmark in the amount of $190,000 for the purchase of telemedicine equipment and radiology and mammography equipment.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Education: Higher Education

Legal Name of Requesting Entity: State University of New York at Canton

Address of Requesting Entity: 34 Cornell Drive, Canton, NY 13617.

Description: Provide an earmark in the amount of $143,000 the purchase of laboratory equipment for the purposes of distance learning and experimentation.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Justice: OJP Juvenile Justice

Legal Name of Requesting Entity: Youth Advocate Programs, Inc.

Address of Requesting Entity: 2007 North Third Street, Harrisburg, PA

Description: Provide an earmark in the amount of $150,000 for the establishment of two centers in New York State to provide assistance to at-risk youth.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Justice: OJP Byrne Discretionary Grants

Legal Name of Requesting Entity: Franklin County District Attorney's Office

Address of Requesting Entity: 355 W. Main Street, Malone, NY 12953.

Description: Provide an earmark in the amount of $350,000 for the construction and deployment of a wireless video-based surveillance system with video analysis for use by multiple law enforcement agencies.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Environmental Protection Agency: STAG Water and Wastewater Infrastructure Project

Legal Name of Requesting Entity: Village of Canastota

Address of Requesting Entity: 205 Peterboro Street, Canastota, New York 13032

Description: Provide an earmark in the amount of $500,000 for the construction of an upgraded Village combined sewer system.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: National Park Service: Save America's Treasures

Legal Name of Requesting Entity: Frederick Remington Art Museum

Address of Requesting Entity: 303 Washington Street, Ogdensburg, NY 13699

Description: Provide an earmark in the amount of $150,000 for the restoration of the historic Parish Mansion which houses the Frederick Remington Museum.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Economic Development Initiatives

Legal Name of Requesting Entity: Village of Rouses Point, NY

Address of Requesting Entity: 139 Lake Street, Rouses Point, NY

Description: Provide an earmark in the amount of $95,000 for the restoration and preservation of a rail station.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: National Park Service: Economic Development Initiatives

Legal Name of Requesting Entity: Points North Housing Coalition of Jefferson, Lewis and St. Lawrence Counties

Address of Requesting Entity: 129 Kiwassa Road, Saranac, NY 12983

Description: Provide an earmark in the amount of $166,250 for the support and development affordable housing in Jefferson, Lewis, and St. Lawrence Counties.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: National Park Service: Surface Transportation Priorities

Legal Name of Requesting Entity: Operation Oswego County, Inc.

Address of Requesting Entity: 44 West Bridge Street, Oswego, NY 13126

Description: Provide an earmark in the amount of $237,500 for improvement of road and rail connections at the Port of Oswego.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: National Park Service: Federal Lands (Public Lands Highways)

Legal Name of Requesting Entity: New York State Department of Transportation

Address of Requesting Entity: 50 Wolf Road, Albany, NY 12232

Description: Provide an earmark in the amount of $1,425,000 for the construction of a 4-lane road from Interstate 81 to the main gate at Fort Drum in order to enhance the viability of the Fort and improve safety in the region.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Energy: EERE

Legal Name of Requesting Entity: Town of Mexico, NY

Address of Requesting Entity: 3226 Main Street, Mexico, NY

Description: Provide an earmark in the amount of $142,500 for the construction of a town hall that makes use of energy efficient geothermal technologies for climate control.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Energy: EERE

Legal Name of Requesting Entity: Catalyst Renewables Corporation, c/o Lyonsdale Biomass

Address of Requesting Entity: 3823 Marmon Road, Lyons Falls, NY 13368

Description: Provide an earmark in the amount of $475,750 for the commercialization of willow biomass crops as part of the mix of woody biomass feedstocks for bioenergy.

Requesting Member: Congressman John McHugh

Bill Number: H.R. 1105

Account: Department of Energy: EERE

Legal Name of Requesting Entity: State University of New York at Morrisville

Address of Requesting Entity: 90 Eaton Street, Morrisville, NY 13408

Description: Provide an earmark in the amount of $475,750 to construct an algae-based renewable energy efficiency project.

Madam Speaker, I rise today to introduce legislation, the Cluster-Based Economy Enhancement Act of 2009. This proposal is designed to stimulate collaborative interactions between businesses in regional economies to produce innovation and create jobs.

``Clusters'' are geographic concentrations of competing, complementary, or interdependent business entities or industries that do business with one another and have common needs for talent, technology, and infrastructure. The bill recognizes that such clusters boost competitiveness and growth of a region as a whole.

As the recent economic turmoil has highlighted, American industries must become better equipped to thrive in the increasingly competitive global economy. Rather than continuing to see skilled workers move abroad, we need to take actions conducive to the creation of new employment, both through traditional means of expansion and in-sourcing of foreign jobs. As we do so, we must be mindful that there are regions within America, like Central and Northern New York, that continue to struggle disproportionately demanding we seek ways to overcome those challenges to economic development they face.

In response, this legislation would authorize up to $50 million for cluster-based economic

development grants to state and local governments, colleges and universities, and nonprofit economic development organizations to further enhance economic development. Of note, this initiative would make those entities within the five regional development commissions, authorized in the Food, Conservation, and Energy Act of 2008 (P.L. 110- 246) eligible to apply for such grants. It is important to note that these recently created bodies are configured to encompass some of our nation's poorest areas. In addition to the Northern Border Regional Development Commission, which I worked to create, the other commissions include the Delta Regional Authority, the Northern Great Plains Regional Authority, the Southeast Crescent Regional Commission, and the Southwest Border Regional Commission.

Madam Speaker, this legislation would not only help increase America's economic competitiveness, it would also create new opportunities in areas like Northern and Central New York, that are particularly in need of economic opportunities. Accordingly, I ask my colleagues to join with me as I work to enact the Cluster-Based Economy Enhancement Act of 2009.

Madam Speaker, on January 14, 2009, I introduced H.R. 528, the Short Sea Shipping Act of 2009. This measure would provide the tax incentive necessary to increase the transportation of freight via coastal and inland waterways, which would have significant environmental and economic benefits.

Specifically, the Short Sea Shipping Act of 2009 would exempt from the Harbor Maintenance Tax, HMT, nonbulk commercial cargo that is loaded at a port in the United States mainland and unloaded at another port in the United States mainland after transport solely by coastal or river route or unloaded at a port in Canada located in the Great Lakes/ St. Lawrence Seaway System.

Likewise, the bill's exemption would apply to nonbulk commercial cargo that is loaded at a port in Canada located in the Great Lakes Seaway System and unloaded at a port in the United States mainland. Of note, the bill defines the Great Lakes Seaway System as the waterway between Duluth, Minnesota, and Nova Scotia and encompasses the five Great Lakes, their connecting channels, and the St. Lawrence River. In fact, this is the primary difference between my bill and legislation (H.R. 981) that I cosponsored in the 110th Congress. This change was made necessary by the progress made in the development of the proposed Melford International Terminal in Nova Scotia, which is projected to handle nearly 1.5 million 20 foot equivalent units, TEUs, annually by 2015.

The HMT is a levy that is imposed on the value of cargo that is imported to a port within the United States or that is transported between U.S. ports. The tax, which is assessed at a rate of 0.125 percent of the cargo value, including passengers, is assessed only once on cargo that is transported between one U.S. port and another, either at the point of departure or arrival but not both. However, cargo that is carried from a foreign port may be taxed twice, upon arrival at the initial U.S. port and again if transported to another U.S. port aboard a different vessel. Cargo that is transported along the inland waterways is subject to the Inland Waterways Fuel Tax instead of the HMT, but the Great Lakes are not considered part of the inland waterways system.

For too long, the imposition of the HMT has served as a barrier to the development of a robust United States short sea shipping industry. In fact, former Secretary of Transportation Mary E. Peters has stated that ``the HMT is the most significant impediment under current law to the initiation of such services to Great Lakes ports'' because the ``avoidance of the HMT is a main motivation for shipping cargo from Canada to the United States by trucks instead of water.''

By providing this exemption to the HMT, Congress can give cargo shippers an incentive to move cargo via marine. The increased viability of such a water transportation option would subsequently combat current highway congestion, a burgeoning problem facing our Nation's transportation infrastructure. The shift of cargo transportation from common domestic cargo routes to underutilized coastal and inland waterways would also improve the flow of commerce and reduce air pollution generated by ground transportation.

Additionally, by providing such an incentive to the enhancement of the short sea shipping industry, Congress has the opportunity to spur significant economic activity. Ships would have to be built and crews would have to be hired. In New York's 23rd Congressional District alone, which I am privileged to represent, illustrating just one example, the Port of Oswego would realize a significant expansion of traffic, resulting in millions of dollars in economic impact and the creation of dozens of jobs.

Madam Speaker, by enacting H.R. 528, the 111th Congress can eliminate roadblocks and promote the utilization of an efficient, economical, and sustainable means of cargo transportation, while addressing the growing need for reliable transportation alternatives and additional capacity. Accordingly, I ask my colleagues to work with me to enact this important measure.

Madam Speaker, I rise today in support of H.R. 2, the Children's Health Insurance Program Reauthorization Act of 2009. Given the importance of the State Children's Health Insurance Program (SCHIP) to my constituents, I am pleased that the House is working to extend SCHIP through Fiscal Year 2013.

Every bill that works its way through Congress has provisions that are less than ideal and this bill is no exception. Clearly, if given the opportunity, I would write much of this bill in a different way. That opportunity, of course, will not materialize.

However, accessibility to quality health care is one of the great challenges we face as a Nation. It is a particularly acute problem in Northern and Central New York, which I have the privilege of representing. According to one source, there are currently over 400,000 children without health insurance in New York State.

The importance of the SCHIP program to my district is hard to overstate. In fact, nearly 20,000 children in the 11 counties I represent are currently enrolled in the Child Health Plus as the SCHIP program is known in New York State.

The bill before the House today would strengthen and expand the SCHIP program by providing an additional $35 billion over the next four and a half years. As a result of this increase in funding, an additional 4 million children--267,000 in New York State--are projected to be enrolled in the program, thereby ensuring that a total of 11 million children

nationwide have access to health care. Thus, I will support this measure.

Madam Speaker, I rise today to congratulate the Hamilton Central School District Emerald Knights upon winning the 2008 New York State boys soccer class D championship. This was the second state boys soccer championship team in Hamilton Central School's history, and I am proud to represent them.

On November 16, 2008, the Hamilton Emerald Knights won the New York State class D championship when they defeated the defending state champion Chazy Eagles, also from my upstate New York Congressional District, by a score of 4-3. In that game, the Emerald Knights rallied to come from behind and win after trailing the Eagles 3-0 with less than 18 minutes to play. Senior midfielder and First-Team All-State selection, Nathan Steward, tallied the Emerald Knight's first goal in the 63rd minute bending in a 30-yard shot from the right side into the top of the net. Senior midfielder Matthew Broedel cut the Knights' deficit to 3-2, netting a low shot to the far post with 8:05 left in regulation. Then, with 2:44 remaining, Nathan Steward's free kick once again found the leg of Matthew Broedel, whose second goal tied the game at 3-3. The game was finally settled only 42 seconds into the sudden death period when sophomore forward Daniel Kraynak scored the game- winner for the Knights on a pass from senior Alex Thompson. William Keever's three saves in goal and a solid defensive effort helped earn Hamilton its first State championship since 1997. Of note, Matthew Broedel was named championship MVP.

The Hamilton Emerald Knights completed the 2008 season with a record of 22-2. They were coached by Brian Latella and assistant coaches Brian Rose and Trevor Chapman; William Dowsland is the athletic director. Other team members were Alex Bowie, Bobby Dick, Phil Douchinsky, James Gorman, Blaine Holcomb, Mikey Jones, Adam MacBain, Brendon Meeks, Daniel Meeks, Jake Smith, Josh Sorosky, Jack Sullivan, Joe Taranto, Drew Thompson, Keith Upton and Tyler White. The scorekeepers were Robert Reed and Tim Noel. The managers were Lucas Ord, Brian Meeks, Ben Knect, and Ryan Tuttle. Team statisticians were Kaitlyn Askew and Alison Hansen.

Madam Speaker, it is an honor to have the opportunity to recognize the Hamilton Emerald Knights boys soccer team for their significant accomplishment.

Madam Speaker, on January 6, 2009, I introduced three measures that are designed to provide relief to millions of unemployed American workers. These proposals are H.R. 155, the Suspension of Federal Income Tax on Unemployment Benefits Act of 2009; H.R. 154, the Workers Severance Tax Reduction Act of 2009; and H.R. 153, the Worker Savings Account Act of 2009.

From December 2007 to December 2008, the national unemployment rate has risen from 4.9 percent to 7.2 percent and 2.6 million jobs have been lost. In fact, from November 2007 to November 2008, the number of those seeking work has risen in 49 States and the District of Columbia, including New York, which has seen its rate increase from 4.6 percent to 6.1 percent during that time. As of November 2008, in New York's 23rd Congressional District, which I have the privilege of representing, 9 of my 11 constituent counties had unemployment rates that significantly exceed the national rate. With my support, the 110th Congress enacted legislation (P.L. 110-252 and P.L. 110-449) to provide up to an additional 20 weeks of unemployment benefits to workers who have exhausted their 26 weeks of regular benefits. However, there is more we can and should do to help those without a job.

In the first instance, we should enact H.R. 155, the Suspension of Federal Income Tax on Unemployment Benefits Act of 2009. Many Americans are unaware that they must pay Federal income taxes on any unemployment compensation benefits they might receive. This has not always been the case; between 1979 and 1986, those payments were excluded from Federal income taxes. It is time to once more provide this relief to unemployed Americans, which could provide up to $117 in additional income to the average beneficiary. In this manner, Congress can both help those individuals who are most in need and inject billions of dollars into the economy through paid rents, mortgages, utilities, groceries, and other necessities.

We should also enact H.R. 154, the Workers Severance Tax Reduction Act of 2009, which would allow laid-off workers to exclude up to $40,000 from any severance pay, provided that it is less than $150,000 and is received between December 31, 2007, and December 31, 2010. Studies have indicated that roughly 60 percent of businesses offer their employees some kind of severance pay. While these totals can vary from business to business, in many cases it is remitted as a lump sum. Unfortunately for many workers, the IRS takes a substantial bite out of these benefits. Specifically, under current law, severance pay is treated as regular income, thus often driving people into higher tax brackets at the very time they are losing their jobs.

From the start of the current economic slump in December 2007 through November 2008, there have been 20,712 mass layoffs involving nearly a quarter of a million Americans. While not all of them received severance pay, those who did needed all those monies to better support their families, go back to school, or otherwise find a new job or career. Congress can and should help these citizens during this difficult time by allowing them to retain more of these much-needed monies.

Finally, to help Americans enhance their personal safety nets, Congress should enact H.R. 153, the Worker Savings Account Act of 2009. This measure would allow people to establish Worker Savings Accounts (WSAs) to supplement the benefits they might otherwise receive while unemployed.

Like traditional Individual Retirement Accounts (IRAs), WSAs would have an annual contribution limit of $5,000, indexed to inflation. However, employers would be able to provide matching contributions of up to $5,000 annually. Contributions to WSAs would be permitted until the account owner actually elects to take Social Security retirement benefits. At that time, WSA account holders could choose to rollover their WSA funds into a 401(k) or IRA; alternatively, the WSA funds could be withdrawn without penalty but subject to taxation. Prior to a WSA account owner's decision to take Social Security payments, WSA funds could be withdrawn without penalty and tax-free as long as employment was lost through no fault of the worker or they had become disabled.

To encourage lower-income Americans to take advantage of the opportunity to contribute to this benefit, the Worker Savings Account Act would provide a refundable tax credit of up to $1,000 for eligible individuals. This tax credit would be indexed to inflation and recipients could receive up to $5,000 over the course of their career.

Madam Speaker, by enacting the three bills described above, the 111th Congress can help millions of unemployed Americans. Accordingly, I ask my colleagues to work with me to enact these important measures.

Madam Speaker, on September 29, 2008, I introduced legislation, the Protecting Hospital Outpatient and Community Clinic Services Act of 2008 (H.R. 7219), which would prohibit the U.S. Secretary for Health and Human Services (HHS) from taking any action before April 1, 2009, to implement a proposed regulation related to the redefinition of Medicaid outpatient hospital services. This initiative was developed by HHS' Centers for Medicare and Medicaid Services (CMS) and was published on September 28, 2007 (72 Federal Register 55158).

The proposal is designed to limit the definition and scope of Federally reimbursable Medicaid outpatient services provided in a hospital clinic or facility as well as those offered in a rural health clinic. CMS has stated that it is unable to determine the fiscal impact of the rule and that they believe this measure would not significantly alter current practices in most states. However, the National Association of State Medicaid Directors (NASMD) reports that the proposed regulation ``would significantly affect the Medicaid program in every state.'' According to one source, in New York State alone, health care providers would lose over $452 million. It is important to note that this estimate, large as it is, excludes the costs encountered by hospital settings. By way of example, New York's 23rd Congressional District, which I have the privilege of representing, would lose over $2.6 million in Federal funding. Moreover, even after attempting to fully analyze this complex regulation, New York State is still unable to fully assess the total magnitude of its impact.

Needless to say, such a loss of funding would have a devastating impact upon the health care infrastructure, and thus the residents, of Northern and Central New York. Specifically, several constituent providers have estimated the proposed rule would not only reduce their ability to provide critical services to some of our nation's most vulnerable individuals but also literally force these providers out of business.

As stated above, CMS readily admits, it does not fully understand the impact of its actions. The State of New York has documented that the proposal would result in significant negative consequences. In the face of such circumstances, prudence demands that the rule's actual consequences be thoroughly examined, and well understood, before its implementation. H.R. 7219 would provide CMS, and Congress, until April 1, 2009, to closely examine the proposed rule and act accordingly. Thus, I urge my colleagues to join with me to enact this legislation before the conclusion of the 110th Congress.

Madam Speaker, I submit the following:

Requesting Member: Congressman John M. McHugh.

Bill Number: S. 3001.

Account: Defense Health Program (DHP).

Legal Name of Requesting Entity: Fort Drum Regional Health Planning Organization.

Address of Requesting Entity: 120 Washington Street, Suite 302, Watertown, New York 13601.

Provide an earmark of $640K for the Fort Drum Regional Health Planning Organization (FDRHPO).

The funding will enable the organization, as part of the pilot program reauthorized and expanded in P.L. 110-181, to hire the necessary staff and conduct the required assessments.

Requesting Member: Congressman John M. McHugh.

Bill Number: H.R. 2638.

Account: RDT&E, Navy.

Legal Name of Requesting Entity: Trudeau Institute.

Address of Requesting Entity: 154 Algonquin Ave., Saranac Lake, New York 12983.

Provide an earmark of $1.6 million for U.S. Navy Pandemic Influenza Vaccine Program. The funding will support the acceleration of studies of pandemic influenza vaccine research by developing and incorporating the use of bioinformatics (the use of techniques including mathematics, informatics, statistics) to solve biological problems associated with pandemic influenza vaccine and related issues.

Requesting Member: Congressman John M. McHugh.

Bill Number: H.R. 2638.

Account: RDT&E, Army.

Legal Name of Requesting Entity: Clarkson University.

Address of Requesting Entity: 8 Clarkson Avenue, Potsdam, New York 13699.

Provide an earmark of $1.6 million for nanostructured materials for Photovoltaic Applications. On a digital battlefield, scientific and technological superiority in land warfighting capability places a high premium on reliable and mobile communications systems. Lead acid batteries and diesel generators must yield photovoltaic (PV or solar cells) systems. Commercial and military efforts to achieve orders of magnitude increases in photovoltaic (PV or solar cells) device efficiency and decreases in cost have not been successful to date. This research project will develop novel PV technology (such as antireflective, antiflouling, and self-cleaning coatings for the solar cell applications) that will increase efficiency and reliability.

Requesting Member: Congressman John M. McHugh.

Bill Number: H.R. 2638.

Account: RDT&E, Army.

Legal Name of Requesting Entity: State University of New York at Plattsburgh.

Address of Requesting Entity: 101 Broad Street, Kehoe 815, Plattsburgh, New York 12901.

Provide an earmark of $1.280 million to study the use of drugs to reduce hearing loss following acute acoustic trauma. The project will study the viability of using pharmacologic agents to reduce the effects on hearing of an acute acoustic trauma such as that produced by blast exposure. SUNY Plattsburgh's Auditory Research Laboratory is one of the few laboratories in the U.S. dedicated to this type of research. Acute blast exposure is a serious problem in current military operations, resulting in disability status for a large number of personnel. This project will provide an objective look at drugs that may reduce hearing loss.

Requesting Member: Congressman John M. McHugh.

Bill Number: H.R. 2638.

Account: RDT&E, Army, Medical Advanced Technology.

Legal Name of Requesting Entity: WelchAllyn.

Address of Requesting Entity: 4341 State Street Road, Skaneateles Falls, New York 13152.

Provide an earmark of $2.0 million for the Personal Status Monitor (Nightengale). The funding will enable WelchAllyn to further develop its smart sensing technologies which provide on-body sensing of physiologic parameters that can be relayed to a remote server by means of a series of wireless relay devices for notification in the case of a critical or life-threatening event. The research and development will provide DOD with mobile, wireless monitoring of patients and other personnel who would benefit from being monitored where traditional monitoring has not typically been used given high cost and weight of devices.

Requesting Member: Congressman John M. McHugh.

Bill Number: H.R. 2638.

Account: RDT&E, Army.

Legal Name of Requesting Entity: Syracuse Research Corporation.

Address of Requesting Entity: 7502 Round Pond Road, North Syracuse, New York 13212.

Provide an earmark of $3.2 million for the Foliage Penetrating, Reconnaissance, Surveillance, Tracking and Engagement Radar (FORESTER). FORESTER is an airborne sensor system that provides standoff and persistent wide-area surveillance of dismounted troops and vehicles moving through foliage. Designed and developed to fly on the A160 Hummingbird unmanned helicopter, FORESTER is a one-of-a-kind technology providing the warfighter with all-weather, day-night target detection and tracking capability in real-time. The request will provide the funding necessary to transition FORESTER to the user community and apply the technology to additional platforms.

I thank the gentleman for yielding. I'm very, very flattered by his gracious comments as probably unmerited as they may be.

Mr. Speaker, this is a bittersweet moment. It is sweet, or certainly an uplifting moment because we are here on the floor with a defense authorization bill. Had you asked anybody just a few weeks ago, I think they would have suggested no, it couldn't be possible. Yet through the incredible leadership of the gentleman from Missouri (Mr. Skelton) and former chairman and now able ranking member, the gentleman from California (Mr. Hunter), we are here, and we're not just here in presence, we're here with an absolutely incredible bill.

I want to thank the gentlelady from California, my counterpart, the Chair of the Personnel Subcommittee, for her leadership. As you look at this bill, it meets the absolute first criteria of any effective DOD authorization bill, taking care of the troops.

You heard the gentlelady recount the very positive things in this bill, and I couldn't agree with her more. I'm proud to be even remotely associated with that.

I would also say, this is a triumphant staff. We are served incredibly well, day in and day out, by our professional staff members.

Never have they distinguished themselves more than they have this year. To do what it usually takes 6, 7, 8, 9 weeks and more in a matter of days is just an achievement that rings so very solidly to their credit but also is important to the goodwill of the Members.

But I will tell you, this is a sad moment. This bill is very appropriately named after my colleague, my leader, Duncan Hunter, but he is taking with him the kind of dedication, devotion, and leadership that are not easily replaced, and he will be sorely, sorely missed, and certainly as a friend I will miss him dearly.

But just to kind of add insult to injury, he's taking with him two great Members, Terry Everett and Jim Saxton, folks who have led this committee and done so much good. But we carry forward in their great tradition. This is a great bill in their memory, and I urge my colleagues to support it.

Madam Speaker, on September 11, 2008, I introduced legislation, the Dairy and Sheep H-2A Visa Enhancement Act of 2008 (H.R. 6885), which is designed to ensure that American dairy farmers and sheep ranchers can legally hire the employees they need. Very simply, it would provide dairy farmers with access to the H-2A visa program and codify longstanding regulatory practices that currently allow sheepherders such access.

As I have previously mentioned, one cannot overstate the importance of the dairy industry to the United States economy. In 2007 alone, nearly 60,000 commercial dairy farmers produced 185 billion pounds of milk worth $35.5 billion. This generated more than $140 billion in economic activity and 1.2 million jobs. In New York's 23rd District, which I have the privilege of representing, dairy is an integral component of the economy, as there are approximately 2,000 dairy farms with some 190,000 milk cows dispersed across the 11 counties that comprise the District. Likewise, in 2007, national retail sales of sheep products were nearly $768 million. These retail receipts supported an additional $1.4 billion in economic activity for a total economic impact of $2.2 billion.

For all of its importance, the dairy industry simply cannot continue to operate at its current capacity, let alone expand, without immigrant workers. Increasingly, the U.S. dairy workforce is relying upon those born outside of the United States, with some estimates indicating that at least 50 percent of all current labor is now foreign-born. Without access to a stable workforce, many American farms could well go out of business. According to an analysis completed by the Farm Credit Associations of New York, over 445 New York dairy farms are highly vulnerable to this situation. In recent years, I have seen this vulnerability first hand as dozens of constituent dairy farmers have repeatedly shared with me the toll that the uncertainty associated with the status quo is extracting from them.

There is a similar need for year-round sheepherders. Given that the U.S. sheep industry was unable to secure suffIcient domestic labor to herd range livestock beginning decades ago, a regulatory provision was created allowing the industry to utilize the H-2A program to employ foreign sheepherders. This measure has proven to be extremely successful. For more than 60 years, more than one-fourth of the nation's entire sheep flock has been produced by ranchers utilizing sheepherders born outside of the United States.

Unfortunately, due largely to its ``temporary or seasonal in nature'' employment requirement, dairy farmers are currently unable to utilize the H-2A visa program. Thus, it is imperative that Congress act now to provide American dairy farmers access to this program through enacting the Dairy and Sheep H-2A Visa Enhancement Act of 2008. This measure would codify existing regulatory practices and allow American sheep ranchers to legally hire foreign workers for an initial period of three years and additional terms of three years without requiring intervening periods of absence. It would also allow dairy farmers to hire foreign workers on a similar basis.

Put simply, American dairy farmers need workers now. They can ill afford to wait for Congress to complete its long delayed attempts to enact legislation accomplishing comprehensive immigration reform. Accordingly, I urge my colleagues to work with me to help American dairy farmers and bolster our nation's economy by enacting the Dairy and Sheep H-2A Visa Enhancement Act of 2008.