Strengthening America'S Security In The Middle East Act Of 2019--Motion
Madam President, I ask unanimous consent that the Senate proceed to the immediate consideration of Calendar No. 5, H.R. 21, making appropriations for the fiscal year ending September 30, 2019, and for other purposes. I further ask that the…
Madam President, I ask unanimous consent that the Senate proceed to the immediate consideration of Calendar No. 5, H.R. 21, making appropriations for the fiscal year ending September 30, 2019, and for other purposes. I further ask that the bill be considered read a third time and passed and the motion to reconsider be considered made and laid upon the table with no intervening action or debate.
Madam President, I rise to discuss the effects of the Federal Government shutdown. I have given a number of floor speeches about the effects of the shutdown on Federal employees and their families. I heard the Presiding Officer give a similar speech about the effects on the Coast Guard in Kodiak, AK, the other day. I have also talked about the effect of the shutdown on American citizens who depend upon the services of Agencies that have been shuttered or dramatically reduced in capacity.
Today I want to talk about something different. I want to talk about the effect of the shutdown on American businesses, especially small businesses.
Over the past month, I have had numerous conversations with business owners who tell me how this shutdown has hurt them, and, no surprise, economic analysts have indicated that the shutdown is having a massive effect on the U.S. economy.
S&P, for example, has concluded that the shutdown will cost the United States more than $6 billion by week's end, a little bit over 1 month in.
President Trump's chief economic adviser, Kevin Hassett, said that a zero-percent growth rate is possible because of the shutdown.
His quote in an article dated January 23:
If [the shutdown] extended for a whole quarter and given
the fact that the first quarter tends to be low because of
residual seasonality, then you could end up with a number
close to zero in the first quarter.
We are now more than 1 month into the shutdown, and this economic effect is very real.
I just returned this morning from a discussion with businesses in Loudoun County, VA, which is sort of in the western outer suburbs of Washington, and here is what these businesses told me:
A conference hotel in Loudoun whose bookings in the first quarter are down 50 percent from the same quarter last year, and because they had such a strong year last year, they said they were projecting for increases this year, so their bookings are down 70 percent from what they had projected for the first quarter of 2019.
When they lose revenue because of lost bookings, that affects their ability to hire people. It also affects their purchase of supplies from area suppliers. They say they have a HIVA practice--Hire Virginia--and what did they call the other one--a SUVA practice, Supplies from Virginia. They try to buy all of their supplies and hire all of their people from Virginia, and so the reduced bookings are having a direct effect on other businesses and individuals as well.
A local chamber of commerce, with 1,200 members who are suffering in a variety of ways, but the chamber president pointed out to me that 300 members are nonprofits--nonprofits which are seeing reduced contributions because of the shutdown and people having less income but also increased demands for services.
Local restaurants whose revenues are down 20 to 30 percent--that reduction in revenue, which is fewer people coming in or people coming in and spending less, affects hiring and it affects their payments to local suppliers, thus having a second-order effect on other businesses.
Restaurants are reporting that they are seeing a big uptick in Federal employees applying for part-time work at their restaurants, which they have a hard time providing because their revenues are down and fewer customers are coming in.
Many government contracting firms in Northern Virginia--often started and operated by veterans--whose employees are furloughed or working fewer hours, thereby affecting the profitability of their businesses, most said they are trying to continue to pay their employees even though they are not working, even though they are not bringing in revenue, which is affecting profitability and eventually the viability of the very businesses themselves.
The contractors are talking about how they are starting to lose employees in a tight labor market to other businesses that are not dependent upon government contracts.
Loudoun is the third most popular tourism destination in Virginia out of 134 cities and counties. I did not know that until I was informed of it by a proud operator of the Loudoun Tourism Department today, but they are seeing dramatically reduced attendance at any tourism site, from restaurants to hotels and bars, to museums and all kinds of other historic sites in Loudoun.
Here is one that was interesting, and it dovetails with a discourse, a speech given by the Presiding Officer on the floor a few days ago--a local microbrewery. A local microbrewery said, first, sales are down due to people losing salaries, and sales being down affects their employment, but they are also unable to launch new product lines. New product lines require an approval by a Department of the Federal Government to approve that a new product line is offered. There are 7,000 microbreweries in the United States, and they all need approval from this Federal Agency, the TTB, when they want to offer a new product line.
The owner of Old Ox Brewery told me: We set it up months in advance. This was going to be the March release. Normally, it would take about 2 weeks from an application. This Agency is really pretty prompt. They get back with you quickly, and they tend to approve quickly, but he said: I have two problems with the Agency right now. They are shuttered so they can't approve the product lines I have developed and I wanted to brew for March. I
can't brew them now if I can't sell them. That means products I promised not only in-house at our brewery but to grocery stores and restaurants that I promised, I can't brew. He said: I know this Agency, when they finally come back with a reopening, with 7,000 breweries just like mine having filed with them, the backlog is going to mean they are not going to be able to respond in 2 weeks. It is going to take them significantly longer.
If I might read a letter--this is not from the Old Ox Brewery, where I was this morning, but another brewery in Alexandria, VA:
Dear Senator Kaine,
Here is a summary of the negative effects the government
shutdown is having on our small business in Alexandria, VA.
The Alcohol & Tobacco Tax & Trade Bureau (TTB) has stopped
reviewing recipes and labels. . . . It affects our entire
operation, and damages our revenue stream, which relies on
new beers in the market.
It also hurts our employees, some of whom are paid on
commission from the sale of our beer.
Upstream in our supply chain, it negatively affects our
farmers who provide our grain, as well as our hop growers and
malt suppliers. It also hurts our other suppliers, such as
our label printers and box manufacturers.
Downstream, it hurts our distributors and retailers because
they don't have our new beers to sell [and ultimately affects
customers].
We have a pending Small Business Administration loan for
our new bottling equipment. The SBA has closed and we cannot
close on this loan until the shutdown is over.
The brewery I was at this morning--the Old Ox Brewery--was a little bit ahead of Port City in the process. They got a loan to renovate a new facility in Middleburg, VA, which they have purchased and renovated, but they can't get it open until the TTB comes out and does the inspection of the brewery equipment.
He said: I invested, and I am paying, but I am not able to bring in any revenue, and I have no idea when I am going to be able to bring in revenue.
Traditionally opening a new facility requires a TTB approval first, and you then go to the State to get permission to open the facility.
He said: Am I looking at 90 days? Am I looking at 4 months of paying for this facility without being able to bring in any revenue for it?
This same challenge as was indicated in the letter from Port City affects not only breweries but wineries. Loudoun County has a lot of farm wineries.
One owner of a local winery came. This is a small operation. They started the winery so they could preserve the family farm and not have to sell it to developers.
A lot of our small family farms get turned into subdivisions unless the family who operates the farm can find a productive way to make a small acreage profitable.
In 2002, this family, who had been in farming for generations, decided: We don't want to sell for a subdivision. The way we will try to be profitable is to operate a farm winery.
The same Agency, the TTB, is charged with approving their product and also labels. They have done their grape harvest, and they booked time at the local bottling plant in March to take all of the wine and put it in bottles with labels affixed, but they can't get the labels approved. They have all their product, and they have booked time at a facility that starts in a very few weeks, but there would be no reason to use the bottling facility to put wine in bottles with no labels on them. They couldn't sell it. The Agency that is required to approve labels is shuttered. They don't know what they are going to do.
A 10-person, small family business--maybe this spoke to me because I grew up in a house with a small business where, in a good year, there would be eight employees, and in a bad year, there would be five, plus three teenage boys and my mother. So this business was a lot like my own family's experience in size. They distribute janitorial supplies to customers, such as the Smithsonian. The Smithsonian operations are closed. They also distribute janitorial supplies to WMATA, their largest customer.
WMATA is open. WMATA's Federal revenues are still coming in, but WMATA also relies on the farebox revenue. WMATA is down $400,000 a day because, with Federal employees furloughed, huge numbers of people who normally ride the Metro Monday to Friday aren't.
That $400,000-a-day hit on WMATA has not yet affected this business-- he was careful to point that out--but with the Smithsonian shut and WMATA affected, he is worried about when he will see his 10-person business affected.
There is deep concern by area businesses in this part of Loudoun, which is very close to Dulles, about the effect of the shutdown on TSA workers and air traffic controllers, as would be the case in Alaska, where air travel is critical. It would probably be air or snowmobile for many people living in Alaska. In Virginia, air travel is critical. Anything that affects commercial air poses huge jeopardy on people's access and on the local economy.
This one was interesting--a local consignment shop. I was like, well, how are you affected by the shutdown? It is a consignment shop that is fairly notable and has won awards for being one of the best small businesses in the county. They talk about how their business is dramatically affected by the shutdown. They see it every day. More Federal employees are bringing in personal items to try to submit to consignment because to make do, they need to sell personal items they might not otherwise want to. Also, there are fewer people coming in to buy the items that are available in the consignment shop because there is less discretionary income. This shop has reduced its own employees' hours by 20 percent.
A local small business development center--this is kind of a community center, like an incubator for small business. It is funded through SBA. It serves 300 startup businesses a year. They are unable to operate. They have some local funds. They can see clear to March, but they don't know whether they can stay open thereafter due to no Federal funding. These small business centers operate around the country. One of the things they do is help businesses like Port City get small business loans. They can't do that now because there are no business loans being made.
A Federal contractor who is currently unaffected because their contracts are with DOD Agencies had an expansion plan to go out and work with other Agencies that are shuttered by the shutdown; thus they cannot move forward on the expansion plan.
Finally, county government officials who were at the meeting have now had to provide emergency funding for local food banks and for free public transportation for affected Federal employees and other emergency services as well. That wasn't what they thought they would need to be doing with the budget they had planned for. The fiscal year began July 1. They hadn't put it into the budget, but they are having to cobble together ways to serve the Federal employees and their families who are affected.
There are so many other stories like this that I heard around Virginia. One that stuck with me in particular was a local dentist commenting that so many patients are canceling appointments because of their concerns about inability to pay copays or buy medications. Hopefully, these are postponements and not cancellations. Obviously, it is not good for people's health and not good for the small business this dentist operates.
We do have a solution to this that the Senate will take up tomorrow. I am heartened by the fact that we will have an opportunity tomorrow to vote on a solution. I think we should vote to open government until February 8. That is not a lot of time. From tomorrow, it will be 15 days. Then we should engage immediately in an effort to consider, debate, amend, and vote upon the proposal the President introduced through the majority leader yesterday.
I listened to the majority leader's comments before I spoke, and he said a deal was on the table. As I saw Republicans--for example, my colleague from Oklahoma--describe the deal on Sunday during one of the television shows--he said: It is the President's opening proposal. It is meant to inspire constructive dialogue.
In that sense, I agree. It is a proposal to inspire constructive dialogue. The four elements of the President's proposal--border security, the temporary protected status program, the DACA Program, asylum processes, and the bases for receiving asylum--are very
legitimate discussions on which I believe we can find a bipartisan compromise.
We will have a vote on that proposal tomorrow, but it will not be a proposal that is about compromise--it will be an up-or-down vote. Do you accept the President's proposal without the opportunity to hear its justification, without the opportunity to offer an amendment? Take it or leave it. Under those circumstances, it is very hard to say that is a constructive debate or dialogue; however, we have the opportunity to do that.
I believe that if we vote to open government through February 8--15 days--the Senate should, in this humble Senator's view, put that bill in committee next week. There should be an administration explanation of the pieces of the bill, with the members of the relevant committees being able to ask questions. For example, on the TPS proposal, you propose to restore TPS for 4 of the 10 affected countries but not the other 6. Why is that? Is there some reason for that, or can we explore it?
I think those questions need to be asked, and they need to be answered. There may be a reason there. There may be a better approach there.
Then the committee should be able to move--again, in my opinion; I am not on either of the relevant committees, Appropriations or Judiciary, but with Republican majorities and Republican chairs, I believe this could be done--move to a markup of the bill a few days or 2 days after the explanatory discussion. The bill could then be on the floor the following week, before February 8, where we could do the same thing and have the opportunity to try to make the bill as strong as it can be, as bipartisan as it can be because it would need to be to have a realistic chance of passing in the House.
I do agree with the majority leader--there is now a proposal on the table. It is a proposal that is worthy of discussion. I have some ideas about ways to make it better, and I bet virtually every Member-- Republican and Democratic--in the Chamber would have ideas as well. But if we are going to take it seriously, let's take the time to take it seriously.
I urge my colleagues to vote yes on one of the votes we will take tomorrow, which would reopen government for 15 days while we engage earnestly with the President's proposal. I deeply believe that if we undertake that kind of focused effort without being pulled away because of the needs of constituents affected by the shutdown, we can be focused and find an answer.
The last thing I will say before I yield the floor is this. Some would say: Why don't you negotiate while the shutdown is in place?
If there was a hurricane in Virginia Beach, everybody in this Chamber would understand that I wasn't here; I was in Virginia Beach dealing with people who were hurting. This is a hurricane. When it affects the livelihood of so many Virginians who are hurting deeply, I am out every day with people who are hurting. In the middle of a hurricane, no one would fault me for being in Virginia Beach or a Florida Senator from being in Florida trying to comfort people who are hurting. Nobody would say: Why aren't you back here having around-the-clock negotiations on something?
For this Senator, the top priority I have every day is trying to be out with people who are hurting and trying to provide them with answers and some assurance that we can move forward. If we can get government open for 15 days, we can be here around the clock, and we can find a solution to this. I am confident we can. I ask my colleagues to join me in that when we have that vote.
With that, Madam President, I yield the floor.