[Senate Hearing 115-826]
[From the U.S. Government Publishing Office]
S. Hrg. 115-826
NOMINATIONS OF MICHAEL FAULKENDER
AND ELIZABETH DARLING
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON FINANCE
UNITED STATES SENATE
ONE HUNDRED FIFTEENTH CONGRESS
SECOND SESSION
ON THE
NOMINATIONS OF
MICHAEL FAULKENDER, TO BE ASSISTANT SECRETARY FOR ECONOMIC POLICY,
DEPARTMENT OF THE TREASURY; AND ELIZABETH DARLING, TO BE COMMISSIONER,
ADMINISTRATION ON CHILDREN, YOUTH, AND FAMILIES, DEPARTMENT OF HEALTH
AND HUMAN SERVICES
__________
AUGUST 22, 2018
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the Committee on Finance
__________
U.S. GOVERNMENT PUBLISHING OFFICE
40-598 PDF WASHINGTON : 2020
--------------------------------------------------------------------------------------
COMMITTEE ON FINANCE
ORRIN G. HATCH, Utah, Chairman
CHUCK GRASSLEY, Iowa RON WYDEN, Oregon
MIKE CRAPO, Idaho DEBBIE STABENOW, Michigan
PAT ROBERTS, Kansas MARIA CANTWELL, Washington
MICHAEL B. ENZI, Wyoming BILL NELSON, Florida
JOHN CORNYN, Texas ROBERT MENENDEZ, New Jersey
JOHN THUNE, South Dakota THOMAS R. CARPER, Delaware
RICHARD BURR, North Carolina BENJAMIN L. CARDIN, Maryland
JOHNNY ISAKSON, Georgia SHERROD BROWN, Ohio
ROB PORTMAN, Ohio MICHAEL F. BENNET, Colorado
PATRICK J. TOOMEY, Pennsylvania ROBERT P. CASEY, Jr., Pennsylvania
DEAN HELLER, Nevada MARK R. WARNER, Virginia
TIM SCOTT, South Carolina CLAIRE McCASKILL, Missouri
BILL CASSIDY, Louisiana SHELDON WHITEHOUSE, Rhode Island
Jeffrey Wrase, Staff Director and Chief Economist
Joshua Sheinkman, Democratic Staff Director
(ii)
C O N T E N T S
----------
OPENING STATEMENTS
Page
Hatch, Hon. Orrin G., a U.S. Senator from Utah, chairman,
Committee on Finance........................................... 1
Wyden, Hon. Ron, a U.S. Senator from Oregon...................... 2
Cornyn, Hon. John, a U.S. Senator from Texas..................... 5
ADMINISTRATION NOMINEES
Faulkender, Michael, Ph.D., nominated to be Assistant Secretary
for Economic Policy, Department of the Treasury, Washington, DC 7
Darling, Elizabeth, nominated to be Commissioner, Administration
on Children, Youth, and Families, Department of Health and
Human Services, Washington, DC................................. 8
ALPHABETICAL LISTING AND APPENDIX MATERIAL
Cornyn, Hon. John:
Opening statement............................................ 5
Darling, Elizabeth:
Testimony.................................................... 8
Prepared statement........................................... 21
Biographical information..................................... 22
Responses to questions from committee members................ 29
Faulkender, Michael, Ph.D.:
Testimony.................................................... 7
Prepared statement........................................... 34
Biographical information..................................... 35
Responses to questions from committee members................ 39
Hatch, Hon. Orrin G.:
Opening statement............................................ 1
Prepared statement........................................... 44
Wyden, Hon. Ron:
Opening statement............................................ 2
Prepared statement........................................... 45
(iii)
NOMINATIONS OF MICHAEL FAULKENDER,
TO BE ASSISTANT SECRETARY FOR
ECONOMIC POLICY, DEPARTMENT OF
THE TREASURY; AND ELIZABETH DARLING,
TO BE COMMISSIONER, ADMINISTRATION
ON CHILDREN, YOUTH, AND FAMILIES
DEPARTMENT OF HEALTH
AND HUMAN SERVICES
----------
WEDNESDAY, AUGUST 22, 2018
U.S. Senate,
Committee on Finance,
Washington, DC.
The hearing was convened, pursuant to notice, at 9:33 a.m.,
in room SD-215, Dirksen Senate Office Building, Hon. Orrin G.
Hatch (chairman of the committee) presiding.
Present: Senators Cornyn, Thune, Toomey, Cassidy, Wyden,
Cantwell, Nelson, Cardin, Casey, McCaskill, and Whitehouse.
Also present: Republican staff: Jeffrey Wrase, Staff
Director and Chief Economist; Nicholas Wyatt, Tax and
Nominations Professional Staff Member; Tony Coughlan, Tax
Counsel; and Ryan Martin, Senior Human Services Advisor.
Democratic staff: Joshua Sheinkman, Staff Director; Michael
Evans, General Counsel; Tiffany Smith, Chief Tax Counsel; Laura
Berntsen, Senior Advisor for Health and Human Services; and
Adam Carasso, Senior Tax and Economic Advisor.
OPENING STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM
UTAH, CHAIRMAN, COMMITTEE ON FINANCE
The Chairman. Good morning. I would like to welcome
everyone to today's hearing.
This morning we are meeting to discuss the nominations of
Michael Faulkender to be Treasury Assistant Secretary for
Economic Policy, and Elizabeth Darling to be Commissioner on
Children, Youth, and Families at the Department of Health and
Human Services.
If confirmed, Dr. Faulkender will support the Secretary of
the Treasury directly as one of the foremost economic officials
in our government. That role is an important one, and with the
important changes from tax reform just starting to take effect,
Dr. Faulkender's economic analysis will be key. The Office of
Economic Policy in the Department of Treasury analyzes and
reports on both current and perspective economic developments
in the United States and world economies. In his role, Dr.
Faulkender will lead that office as well as assist in
determining appropriate economic policies and participate in
creating the administration's budget.
This is a brief overview of a rather complex job, one with
serious and critical duties. But I believe Dr. Faulkender is up
to the task.
As you will hear in a few minutes when we introduce both of
our witnesses, Dr. Faulkender has had a distinguished career in
academia, where he has risen to the level of an associate dean
at the University of Maryland's Robert H. Smith School of
Business and won many teaching awards as well.
But as mentioned, we are also here today to consider Ms.
Darling. Ms. Darling has a broad range of experience at the
Federal, State, and local levels, especially in areas fostering
collaboration between government and community-based
organizations.
If confirmed, Ms. Darling will oversee two important child
welfare agencies within HHS: first, the Children's Bureau,
which manages the multibillion-dollar child welfare entitlement
programs, including foster care, a program that recently
received a significant bipartisan overhaul from Congress. Ms.
Darling will also lead the Family and Youth Services Bureau,
the office serving runaway or homeless youth and supporting
victims of domestic violence.
These are very important programs that directly affect the
lives of millions of Americans each and every year. And the
work ahead will not be easy. However, I am confident that Ms.
Darling's prior experience at HHS under the Bush
administration, and her work in Maryland and Texas, make her a
qualified candidate for this important position.
Together, the nominations of both Dr. Faulkender and Ms.
Darling represent an example of two well-qualified candidates
being nominated to key positions within the executive branch.
Confirming these two nominees will help us ensure our
government can fulfill the promises that we have all made to
the American people.
So with that, I will turn to Senator Wyden for his opening
statement.
[The prepared statement of Chairman Hatch appears in the
appendix.]
OPENING STATEMENT OF HON. RON WYDEN,
A U.S. SENATOR FROM OREGON
Senator Wyden. Thank you very much, Mr. Chairman.
Mr. Chairman and colleagues, God has a way of dropping
earth-shaking news right before Finance Committee hearings.
This morning's hearing is no different, and the news that broke
last night about the prosecutions of two Trump associates now
has ramifications for certainly one of the nominations before
the committee today.
The President's personal lawyer and his former campaign
chairman are now confessed or convicted felons. They join a
long and growing list of Trump associates who have broken the
law. Mr. Manafort, relevant to this committee, stole from every
American taxpayer when he committed tax fraud. Mr. Cohen's
crimes are also relevant to our investigative work in multiple
areas. Yet the Trump administration and the Trump Treasury
Department continue to stonewall this committee's attempts to
investigate these matters of criminal tax evasion, corruption,
and foreign influence in our elections. That is why I am
maintaining holds on all Treasury nominations.
Yesterday's news makes one matter clear: by refusing to
answer our questions, the Trump Treasury Department is helping
to cover up criminal activities. This stonewalling has gone on
too long. When the Treasury decides to actually cooperate and
provide satisfactory answers to the questions that Democratic
members of this committee are asking--not just Republicans--
then it will no longer be necessary to maintain this policy I
have described of holding nominees.
Now, on to the two nominations before the committee this
morning. If confirmed, Dr. Faulkender will head up the Office
of Economic Policy at the Treasury Department. He will be in
charge of some of the most important economic analysis that
comes from the executive branch. It is a significant job, in no
small part because the Trump administration--particularly when
it comes to taxes--has proven to be a supplier of economic
fiction. And you do not have to take my word for it.
You can ask any typical American worker if they have gotten
the $4,000 raise they were promised they would get as a result
of the Trump tax law. Ask any respected mainstream economist
whether tax handouts to the wealthy and corporations pay for
themselves.
These unicorn tax fantasies came straight from the White
House. Yet during the debate on the tax bill, Secretary Mnuchin
also fabricated a story about Treasury, and the Office of
Economic Policy in particular, putting out a comprehensive
analysis that would prove that these fantasy claims were true.
What the Treasury did release was not a full report. It was a
single page, and it failed to meet the middle-school math class
standard of ``showing your work.''
So first of all, I hope that if Dr. Faulkender is
confirmed, he will get the office back in the game on big
legislative issues. And second, I have a strong hope that he
will give the Congress what we have not gotten before, and that
is economic analysis that is trustworthy. It is not going to be
an easy job, because so often we have seen that this
administration is allergic to facts. Given how vital a role
this office plays at the Treasury, and not just on tax policy
but on trade, markets, and much more, this is an important
post.
Finally, let me comment briefly, Mr. Chairman, on Ms.
Elizabeth Darling. She has been nominated to serve as
Commissioner of the Administration on Children, Youth, and
Families.
Over the last few years, as you know, Mr. Chairman, we have
worked extensively on a bipartisan basis--let me underline
that: a bipartisan basis--to pass the largest overhaul of our
child welfare system in decades. That, of course, is Family
First. And as I have talked about with Ms. Darling just a few
minutes ago--and you and I talked about it, Mr. Chairman,
often--this bill had substantial conservative support,
particularly in the other body, where they talked about it at
great length.
If confirmed, Ms. Darling is going to have a big role to
play in implementing Family First, so both sides of this
committee look forward--if you are confirmed--to working with
you on that front.
In the meantime, I am concerned that the Trump
administration is turning its attention toward proposals that
would undo much of the bipartisan work of the chairman, myself,
members of this committee on both sides of the aisle, and the
bicameral support we had with conservatives in the House. I am
concerned that the Trump administration is looking at
overturning that work.
First, there is an effort by the administration to slash
child welfare funding, certainly in the long run. It is the
same type of attack the President's budget-crunchers want to
inflict on Medicaid, capping funding, crippling the ability of
States to serve many of the most vulnerable youngsters and
families out there. What a head-scratcher.
The administration has always said they want the States to
take the lead in these areas of human services. And then we
turn around and we see a budget that takes away the money to
help those vulnerable youngsters and families. And money that I
might add is absolutely key to what the chairman and I have
been trying to do these several years to generate bipartisan
support for child welfare reform.
There is also an effort underway to allow child welfare
providers to discriminate against potential foster parents just
because they are LGBTQ Americans or people of particular faith
backgrounds. The head of the Administration for Children and
Families says he wants to move further in that direction.
I think that is wrong also. It is discriminatory. It seems
to me it is based on nothing but intolerance, and the bottom
line is, you are going to deny a lot of kids the opportunity to
grow up in safe and loving homes.
So we are going to talk about that, Ms. Darling. That is
not a surprise to you.
And I want to emphasize again that I want to work closely
with the chairman. It is no secret that the chairman, after
many years of distinguished service, is going to be retiring at
the end of this Congress. And I have told him--we meet every
week--we are going to go gangbusters between now and the end of
the Senate to work in a bipartisan way wherever we can, things
like Family First, on things like our transformative chronic
care bill. So, Mr. Chairman--I see Senator Cornyn here--as we
hopefully break for at least a little period before we come
back in September, I want to reiterate how strongly I feel
about working cooperatively with you in a bipartisan way
wherever possible.
The Chairman. Well, thank you, Senator. I appreciate your
comments.
[The prepared statement of Senator Wyden appears in the
appendix.]
The Chairman. I would like now to welcome our two nominees,
Dr. Faulkender and Ms. Darling.
If confirmed, Dr. Faulkender will head the Office of
Economic Policy and will report directly to Secretary Mnuchin.
The Office of Economic Policy is responsible for the analysis
of economic developments in the U.S. and world economies and
ensuring the Treasury Department has access to the best and
most up-to-date economic analysis.
Additionally, this office works with the Council of
Economic Advisers and the Office of Management and Budget in
the preparation of the administration's proposed budget every
year. It is important that Secretary Mnuchin and the Treasury
Department have access to accurate data for their own decision-
making and to convey and explain those positions outside the
Treasury Department.
Dr. Faulkender is well-qualified, having worked in finance
his entire professional life, from a bank teller to a professor
of finance at the University of Maryland, for which he has
received several teaching awards. He also currently serves as
associate dean of masters programs at the Robert H. Smith
School of Business.
Elizabeth Darling, if confirmed, will serve as the
Commissioner on Children, Youth, and Families. This position
oversees major Federal programs that support social services
that promote the positive growth and development of children
and their families, protective services, and of course, shelter
for children and youth in the at-risk situations, and I might
add adoption for children with special needs.
Today, my colleague from Texas will introduce Ms. Darling
to the committee. So now I will just turn it over to Senator
Cornyn to do that.
OPENING STATEMENT OF HON. JOHN CORNYN,
A U.S. SENATOR FROM TEXAS
Senator Cornyn. Well, thank you, Mr. Chairman and
colleagues.
It is my pleasure to introduce Elizabeth Darling, who has
been nominated to serve, as you have stated, as Commissioner of
the Administration on Children, Youth, and Families within the
Department of Health and Human Services.
Ms. Darling, as you have noted, brings a wealth of
experience from the private and public sectors, having dealt
for many years with a range of issues on both the Federal and
State levels.
Currently, she serves as the president and CEO of One Star
Foundation, where she supports the State of Texas by
strengthening nonprofits, encouraging civic engagement, and
facilitating public-private partnerships. Before that, she
served as Deputy Secretary for the Maryland Department of Human
Resources, and on top of that, she served as the founding
Director of the Center for Faith-Based Community Initiatives at
HHS, and as an advisor of presidential initiatives inside the
same arm of the agency for which she has now been nominated.
Not only does Ms. Darling possess invaluable experience
within the child-welfare policy realm, she has also felt some
of the impacts of those policies firsthand as an adoptive
mother herself. And in fact, her relevant firsthand experiences
date even further back than that. Ms. Darling tells a story,
for example, of her father's own struggles as a child in the
foster care system and how his experience kindled her own
passion to make a difference in this area.
In addition to her other priorities, Ms. Darling is
particularly interested in combating the opioid epidemic that
currently faces our Nation. And we are all concerned and look
forward to working with you in that effort. I hope before we
leave by the end of August--assuming we ever leave--before the
election, we will pass the bipartisan legislation to address
the opioid epidemic in a comprehensive sort of way.
Earlier this month, the National Centers for Disease
Control and Prevention reported that in 2017 there were 72,000
opioid-related deaths in the United States, including hundreds
in Texas, where fentanyl and heroin fatalities spiked last
year. I would just note that, of course, while many people
become addicted to opioids on prescription drugs, most turn to
a cheaper variant of heroin, 90 percent of which comes across
the U.S.-Mexican border from Mexico. For those who wonder
whether we need to up our game when it comes to border security
measures, I think that statistic tells it all.
A Department of Health and Human Services study found that
since 2010 there has been an increase in foster populations of
10 percent, and this coincides with the rise in opioid-related
deaths during the same time period. Not only has this epidemic
left some children parentless, but it has also sent children in
and out of foster care as their parents struggle with their own
addiction. This nationwide epidemic deserves serious attention,
and I applaud Ms. Darling's interest in helping address the
scourge in our communities.
As all of us are aware, once she is confirmed as
Commissioner, Ms. Darling will oversee numerous programs
protecting the youth of our Nation. These programs support
social services, promoting development in children and
families, protective services in shelters for at-risk youth,
and adoption of children with special needs.
Ms. Darling will also oversee the Children's Bureau, which
protects children from abuse and neglect, and the Family and
Youth Services Bureau, which addresses youth homelessness,
adolescent pregnancy, and domestic violence. These programs are
critical in ensuring children and youth have the opportunities
they need to succeed.
We know what an excellent job Ms. Darling will do. Our
nominee has already had extensive experience on these topics
and has served at the State and Federal levels throughout her
career. And I know she will remain focused on serving all
children, no matter their age, skin color, or socioeconomic
background.
Ms. Darling, I look forward to watching you serve alongside
of Secretary Azar at Health and Human Services on behalf of
some of the most vulnerable Americans. It sounds to me like
your portfolio is vast and certainly challenging, to say the
least.
I thank you for your consideration, Mr. Chairman and
colleagues, of this outstanding nominee, and I know she is
eager and excited to serve her country once again in this new
role.
Senator Wyden. Mr. Chairman?
The Chairman. Senator Wyden.
Senator Wyden. Very briefly before the Republican Senator
has to leave, I just want to make it clear that we too feel
strongly that dealing with opioids is urgent, urgent public
business and very much want to work in a bipartisan way to
reduce opioid usage in our country.
Thank you, Mr. Chairman.
The Chairman. Well, thank you, Senator Wyden.
I do have some obligatory questions that I am going to ask
both of the nominees.
First, is there anything that you are aware of in your
background that might represent a conflict of interest with the
duties of the office to which you have been nominated?
Dr. Faulkender. No.
Ms. Darling. No.
The Chairman. Okay.
Do you know of any reason, personal or otherwise, that
would in any way prevent you from fully and honorably
discharging the responsibilities of the office to which you
have been nominated?
Dr. Faulkender. No.
Ms. Darling. No.
The Chairman. Okay.
Do you agree without reservation to respond to any
reasonable summons to appear and testify before any duly
constituted committee of the Congress if you are confirmed?
Dr. Faulkender. Yes.
Ms. Darling. Yes, I do.
The Chairman. Okay.
Do you commit to provide a prompt response in writing to
any questions addressed to you by any Senator of this
committee?
Dr. Faulkender. Yes.
Ms. Darling. Yes.
The Chairman. Okay.
Now, Dr. Faulkender, we will start with you, and we will
take your testimony at this time. Then we will take yours, Ms.
Darling.
STATEMENT OF MICHAEL FAULKENDER, Ph.D., NOMINATED TO BE
ASSISTANT SECRETARY FOR ECONOMIC POLICY, DEPARTMENT OF THE
TREASURY, WASHINGTON, DC
Dr. Faulkender. Thank you, Mr. Chairman.
Chairman Hatch, Ranking Member Wyden, and distinguished
committee members, I am honored to be with you this morning as
the nominee for Assistant Secretary for Economic Policy at the
Department of Treasury. I am extremely grateful to Secretary
Mnuchin and the President for selecting me for this position.
I would like to take a moment to introduce the members of
my family who are here with me today: my wife Maria of 14
years; our two children Lauren, age 12, and Catherine, age 8;
and my dad and step-mom William and Connie Faulkender. I would
not be here today without the unwavering support of my family
members who are here with me today as well as those who were
not able to attend but are watching from home.
For the last 16 years, I have served as a finance
professor, the last 10 years at the University of Maryland. I
have also taught at Washington University in St. Louis,
Northwestern University, and the University of Pennsylvania. My
research examines the major factors behind firm financial
decision-making such as investment, capital raising, capital
distribution, risk management, and executive compensation. I
have documented, written about, and taught to others how firms
respond to the various incentives and frictions that exist in
our economy. I have seen some of the intended, but also some of
the unintended consequences, of regulation.
For the last year and a half, I have also had the privilege
of serving as an associate dean, leading the faculty and staff
in the delivery of our MBA and specialty masters programs and
ensuring that our graduates have the applied technical and
leadership skills that will propel them in their careers.
As a career academic, my perspective on public policy has
always been from outside the government, documenting the
outcomes after the changes in law or regulation have been
implemented. I am honored by the opportunity to advise and
participate in the crafting of those laws and rules.
I believe that the academic community has an enormous depth
of knowledge and rigor to bring to policy discussions and
debates about the structure of our economy. As we continue to
transition towards a more information-based economy and update
the way that our economy is taxed and regulated, I believe that
I can make a strong contribution to the important leadership
role of the Department of the Treasury.
Based on my conversations with people who have previously
held this role, I know that the Department is home to a strong
career staff of economists. If confirmed, I look forward to
leveraging their substantial experience and expertise to serve
the American people and address the economic opportunities and
challenges confronting our Nation. The decisions made here in
Washington have enormous consequences, so it is critical that
proposals are subjected to rigorous and thoughtful assessment
before being enacted and implemented.
That is the approach I have taken to all of my academic
work, and, if confirmed, that is the same standard I pledge to
you will be generated by the Office of Economic Policy.
It is an enormous privilege to appear before you today, and
I look forward to your questions.
The Chairman. Well, thank you, Dr. Faulkender.
[The prepared statement of Dr. Faulkender appears in the
appendix.]
The Chairman. Ms. Darling, we will take your statement.
STATEMENT OF ELIZABETH DARLING, NOMINATED TO BE COMMISSIONER,
ADMINISTRATION ON CHILDREN, YOUTH, AND FAMILIES, DEPARTMENT OF
HEALTH AND HUMAN SERVICES, WASHINGTON, DC
Ms. Darling. Thank you, Mr. Chairman, Ranking Member Wyden,
and members of the committee, for the opportunity to appear
before you as President Trump's nominee to be the Commissioner
for the Administration on Children, Youth, and Families,
serving those who are in greatest need of hope and assurance
that there can indeed be a brighter future.
I am proud to have my family and many friends and
colleagues across the country watching this hearing today,
including my two sons and their wives, my daughter Emily behind
me, my niece Addy Marie, their husbands, my grandchildren, and
my 93-year-old mother from Austin, TX. My father, who passed
away 4 years ago, just shy of their 68th anniversary, is also
with me in spirit. Also watching are members of the Gilpatrick
family, who took my father into their home in 1940. Their
benevolence has shaped the course of my life.
My youth was filled with opportunity. My parents modeled a
strong work ethic and an unwavering sense of personal
responsibility. I was keenly aware from an early age that
others did not have the same advantages that a loving family
can bring. My dad was orphaned at the age of 8 and grew up in a
children's home and found a foster family just as he was aging
out of care. He was a living example of the hope that a stable,
loving foster family can bring to the life of a child. Almost
80 years later, this foster family is still a large part of my
life.
No doubt their magnanimity influenced the decision my
husband and I made at the age of 28 to adopt a 16-year-old from
a group foster home sponsored by our church. In many ways, our
son served as our social service proving ground. He came to us
after years of unimaginable abuse, and, over the next 10 years
as he sought to overcome its effects, we stood firm in our
love. And plenty of it was tough love and enforced
consequences, as he learned to take responsibility for the man
that he chose to be. I am very proud of who he is today, as I
am of all three of my children.
I have had the privilege of working for many years in State
and Federal Government, including HHS, on family and child
welfare policies and priorities. I believe my success has been
due in large part to an understanding of how government
partners with faith-based and community organizations to get
its work done, and how policies can either help or hinder
service delivery and client outcomes.
ACYF spans two bureaus--the Family Youth Services Bureau
and the Children's Bureau--which address a range of issues:
child abuse and neglect, foster care and adoption, homeless and
runaway youth, trafficked youth, adolescent pregnancy, and
domestic violence. But these issues are connected. To address
any one of these concerns in isolation is to ignore underlying
factors that characterize the complexity of each.
With the recent passage of the Family First Prevention
Services Act, I am energized and optimistic about its potential
to be a catalyst for systemic change for those who support
families experiencing challenges. And, with today's knowledge
and understanding of the effects of adverse childhood
experiences and the resulting trauma that presents in a myriad
of ways, I feel a sense of urgency to support and encourage all
systems of care to deliver services through a
multidisciplinary, trauma-informed lens.
I have seen what hope can do to change a life. I believe
the families that require our services do not just benefit from
best practices or from a continuum of care or from prevention
services. At the core of my being I know it is about
relationships, being in relationship with others, the human
element, that one-on-one supportive dynamic that is difficult
for government to provide, but can often come through extended
family, a place of worship, a community center, a school, a
teacher, a coach, a pastor, or a mentor.
I bring to this position a deep understanding of the
nonprofit sector and its capacity to do what government cannot.
If I am confirmed, I will be a tireless advocate for children,
youth, and families in crisis, and all caregivers and service
providers who seek to help and heal.
Across this vast land, communities are coming together
around issues they have identified and seek to address
together, drawing on the strengths and resources of many to
improve the health of their communities. Whether the issue is
opioid abuse, teen suicide, cyber-bullying, teen pregnancy, sex
trafficking, domestic violence, or child abuse, I have seen
that when communities come together and name a problem and own
it, the power of relationships and the human element can
overcome many obstacles. And imagine if all were educated on
the effects of trauma and understood the possibility of healing
the deepest of wounds.
I thank President Trump for the opportunity to serve as the
Commissioner for ACYF, and I respectfully thank each of you for
your consideration of my nomination.
The Chairman. Well, thank you so much. I think both of you
are excellent people selected for these very important
positions.
[The prepared statement of Ms. Darling appears in the
appendix.]
The Chairman. We have a few questions. Dr. Faulkender, in
your research on corporate cash holdings you have identified
that sometimes large foreign cash holdings of some
multinational firms could be explained by low foreign tax rates
and abilities of these firms to transfer profits within the
firm among related subsidiaries.
As you are aware, since most of the data you used to
analyze corporate cash holdings applied to the old tax code,
and given that we now have a new tax code, I wonder if you
believe things will change? That is, do you believe that the
tax reform has changed incentives of multinational firms to
transfer profits within a firm towards low-tax jurisdictions?
Dr. Faulkender. I do, Senator.
The reduction in the corporate income tax rate reduces the
wedge between the tax rate they would realize overseas and what
they would pay here in the United States. In addition, there
are a number of provisions in the bill in order to make it more
difficult to transfer those incomes over to those low-tax
jurisdictions.
The Chairman. Well, Dr. Faulkender, looking through your
resume, and your research and writings, I would put you in a
category of financial market analysts trying to understand
financial market outcomes from an academic and scientific
perspective, and not a political perspective.
Dr. Faulkender, while at Treasury, if you are confirmed,
what sorts of analysis do you think you might be interested in
pursuing and in what areas would you expect to focus your
efforts?
Dr. Faulkender. Senator, my role would be to take the
academic models and the same rigor that I have applied toward
my research to the Office of Economic Policy and to support the
Secretary and the Department in the variety of proposals and
regulations that are before it.
The Chairman. Ms. Darling, let me go to you. It is
important to consider the perspective of States when
administering programs at the national level.
Earlier in your career, you spent time working at the State
level, both in Texas and in Maryland. What lessons did you
learn in those roles that you will bring with you to your job
at HHS, if confirmed, and how will your experience in those
States shape your work?
Ms. Darling. Senator, thank you for that question. My work
in the State of Maryland was very exciting. It was at a time
when child welfare was in great need of an infusion of new
energy and vision. We had high case turnover rates,
particularly in Baltimore City, almost 7,000 children in out-
of-home care. And we were able to look at the situation and
understand that, in order to actually work with our social
service providers and our caseworkers, we needed to give them
the materials and the supplies that they needed, the resources.
They shared desks, they shared phones, they were in need of
stability and tools in order to accurately track caseloads. And
we were able to do that in a fairly short time, and it made a
big difference to our work in Maryland.
I was also privileged to work on the first child and family
service review, the first round in the State of Maryland. And I
believe I gained great insight through that experience.
The Chairman. Okay.
Ms. Darling, while Federal programs play a key role in
supporting our child welfare system, it is important to
remember that the real work happens in States and local
communities. Nonprofits and other community-based organizations
are critical players as well. And I know you have significant
experience working with these various groups.
If confirmed, how might you work to strengthen partnerships
between the Federal Government and nonprofit organizations to
help families and children in need?
Ms. Darling. Thank you for that question, Senator Hatch.
I believe in a multidisciplinary, community-based, trauma-
informed integrated system of care. That includes State and
Federal partners and local community resources in order to
really bring the local community to bear around the needs of
children and families.
I believe that we can set a tone from the Federal level, as
well as supporting States in encouraging innovation and
strategies to support youth and families at the community
level.
The Chairman. Senator Wyden?
Senator Wyden. Thank you, Mr. Chairman.
Dr. Faulkender, Ms. Darling, welcome.
Now, Dr. Faulkender, if you are confirmed, is it correct
that Secretary Mnuchin will be your boss and you will report
directly to him?
Dr. Faulkender. Yes, Senator, I would report directly to
him.
Senator Wyden. Okay.
Now your boss, if you are confirmed, said last September,
``Not only will this tax plan''--the bill that was passed--
``pay for itself, but it will pay down debt.'' Now as you know,
we have the official Joint Committee on Taxation which does the
scorekeeping, and they said even after taking into
consideration dynamic scoring, the tax cuts will cost more than
a trillion dollars. In other words, the official scorekeeper
said that the tax cuts will put a trillion dollars--over a
trillion dollars--on the national credit card. That does not
even include the cost of debt service. And virtually all
mainstream economists have dismissed the notion that the tax
cuts will pay for themselves, let alone also pay down debt.
So do you agree with Secretary Mnuchin's statement that the
tax plan will pay for itself and even pay down the debt,
thereby disagreeing with our official scorekeeper and the
overwhelming number of mainstream economists?
Dr. Faulkender. Senator, I have not personally run the
forecasts on the tax bill. If confirmed, I look forward to
working with the economists at the Office of Economic Policy to
generate a robust analysis of the revenue implications of the
tax bill.
Senator Wyden. So have you read the Joint Committee on
Taxation review? Is there anything--I cannot believe that you
have not. But is there anything that would cause you to
disagree with their analysis?
Dr. Faulkender. Senator, I have not read it thoroughly. I
have certainly skimmed the report, but I have not thoroughly
read through it.
Where there is disagreement among economists is the extent
to which the changes and incentives that we discussed will
generate additional economic activity.
Senator Wyden. Respectfully, that is not my question.
What I am trying to do--and I am struck here. Senator
Cardin came in and said you were a nice guy, and I am sure that
is the case. I have always heard that too.
But in your opening statement, you say the decisions made
in Washington have economic consequences. So it is critical
that the proposals are subject to rigorous and thoughtful
assessment before being enacted and implemented. So we cannot
give you a pass because we think you are a nice guy. We have
seen one flawed economic analysis after another in connection
with this.
So you have said, I think, that you have not reviewed
everything. But I cannot believe that you have not reviewed the
Joint Committee on Taxation report. I think you said you
skimmed it.
Is there anything you saw there that you think is flawed in
terms of exactly what you are talking about--rigorous analysis?
Dr. Faulkender. Senator, one of the things that we are
looking to do at the Office of Economic Policy is to update the
models to include more information about how the incentives in
the tax bill will change the willingness of businesses to
engage in economic activity.
Senator Wyden. I think it is unfortunate, respectfully,
that you are not answering the question. We all know that there
is debate about incentives. I am one who believes that the use
of responsible incentives is a good idea. I wrote a bipartisan
tax bill, and I thought that it would generate the kind of
behavior-changing activity that would be good for our economy.
But you are not answering the question.
So I am going to ask one more question to see if we can get
you to respond to what you have stated in your own opening
statement is the heart of your obligations. Now, the
President's Chair of the Council of Economic Advisers said
repeatedly the tax cut will raise average wages by $4,000. Yet
to date, in terms of real wages, they are basically flat like
pancakes.
Do you agree with the President and the Council of Economic
Advisers' Chairman that American workers are going to see a
$4,000 wage increase due to the tax cuts?
Dr. Faulkender. Senator, I think as a result of the
improved incentives in the tax bill, we will see higher wages
and lower unemployment than we otherwise would have seen.
Senator Wyden. Okay.
So you still are not responding to the question. But you
are certainly not saying you agree with the Chairman of the
Council of Economic Advisers. You said that wages are going to
go up. Well, nobody is disputing that people--because I talk to
middle-class folks. They have had a bit of an increase, but
they always say, well it is something where maybe we can buy
some groceries and take care of something once, but it is not
resembling the $4,000 pay raise we were told. And it is light-
years away from the massive amount of relief that went to the
folks at the top.
Among the middle class, I have folks who say ``we got a
little bit, hardly notice it.'' And you have not indicated to
me in just what I have asked you that you see what Mr. Hassett
is saying is accurate. But you think somehow that workers are
going to get these additional benefits.
I am going to ask you this in writing as well. Maybe you
will have additional detail, but I cannot give you a pass on
these questions because, by dint of what you have described as
your duties and what we think the office is all about, you are
going to be front and center in making recommendations. And
they come after this parade of flawed economic assessments that
really misrepresented to the American people what they were
going to get.
Folks at the top got what they thought they were going to
get. Folks in the middle clearly did not get what they thought
they were going to get.
Mr. Chairman, I note other colleagues have questions. I am
going to have some additional questions for a second round.
The Chairman. Senator Whitehouse?
Senator Whitehouse. Thank you very much.
Dr. Faulkender, there have been an array of economic
warnings about a potential crash in the coastal property value
market. I am from Rhode Island. It is pretty important to us
what coastal property values do.
These warnings have come from diverse sources, including
Freddie Mac--the Federal agency--the Union of Concerned
Scientists, insurance trade publications, and Nobel Prize-
winning economists. And some of our States--Senator Cassidy's,
for instance, has declared its coast in a state of emergency.
So there are a lot of signals out there about a coastal
property value crash. Here is what Freddie Mac wrote: ``Rising
sea levels and spreading flood plains appear likely to destroy
billions of dollars in property and to displace millions of
people. The economic losses and social disruptions may happen
gradually, but they are likely to be greater in total than
those experienced in the housing crisis and Great Recession.''
Are those warnings worthy of attention at the Treasury
Department, and will you give them attention at the Treasury
Department?
Dr. Faulkender. Senator, certainly any type of economic
risk that rises to the level that you have described will
certainly receive attention from the Office of Economic Policy.
Senator Whitehouse. Great. I will follow up with you,
because the warnings are increasingly widespread.
Relatedly in some respect, but separately, many economists
are also warning of the risk of a carbon bubble, a sudden rapid
deflation of the fossil fuel economy that has considerable and
fairly alarming support in very well-sourced economic papers.
You are familiar, I am sure, with the Bank of England.
Dr. Faulkender. I am.
Senator Whitehouse. And you are familiar with the fact that
the Bank of England is not just a bank, but it is also the lead
financial regulator for the United Kingdom for insurance and
other industries. Correct?
Dr. Faulkender. Yes.
Senator Whitehouse. Yes.
So when the Bank of England speaks, is that something to
pay attention to in its capacity as financial regulator?
Dr. Faulkender. Certainly paying attention to the
significant financial regulators around the world is a voice we
should listen to.
Senator Whitehouse. What the Bank of England has warned is
that ``investments in fossil fuels and related technologies may
take a huge hit.'' That is a quote from them. They also codify
the ``huge hit'' as so significant that it creates what they
call ``systemic risks.'' What does ``systemic risks'' mean in
economics jargon?
Dr. Faulkender. Systemic risk indicates that it has the
potential to bring down the entire financial system.
Senator Whitehouse. Specifically with respect to the U.S.,
there are models suggesting that should this happen, the U.S.
would see a greater than 5-percent decline in GDP and millions
of lost jobs. I think that is largely because the change in
cartel behavior in the oil industry is propping up prices by
limiting supply.
If that reverses to a flood-the-market strategy, the prices
from the low-cost providers would fall so low that it would
virtually eliminate overnight the higher-cost producers in the
United States, Russia, and other places.
What effect on the economy would a 5-percent decline in GDP
and millions of lost jobs have for America?
Dr. Faulkender. So certainly, qualitatively there would be
a number of--long-term unemployment rates would certainly be of
concern, impacts on tax revenue, and required Federal
expenditures would also come into play. If confirmed, that is
certainly something the Office of Economic Policy has the
capacity to model.
Senator Whitehouse. Great. We will follow up on that as
well.
Finally, Nobel Prize-winning economist Joseph Stiglitz has
recently testified the following: ``The transition to a low-
carbon economy is potentially a powerful, attractive, and
sustainable growth story marked by higher resilience, more
innovation, more livable cities, robust agriculture, and
stronger ecosystems.''
Do you agree that a transition to a low-carbon economy
could be potentially a powerful, attractive, and sustainable
growth story?
Dr. Faulkender. Senator, my academic career has mostly been
in the area of financial economics, not as much in energy
economics. So I would be happy to research it and get back to
you.
Senator Whitehouse. I will leave it at that.
My time is expired. I thank the chairman.
The Chairman. Senator Cassidy?
Senator Wyden. Senator Cassidy, I have to be in the Energy
Committee. Would it be possible to ask one question? I
appreciate my colleague's courtesy.
The Chairman. We will turn to you.
Senator Wyden. Thank you, Mr. Chairman.
Just as a matter for the record, Ms. Darling, I need to
know--and you can get this in writing for the record. The
chairman will announce the number of days you have. I need to
know whether you support proposals that would cap Federal
funding for foster care services. The issue here is the block
grant issue.
I remain very concerned that there are some in the
administration who want these block grants. I think that would
work a tremendous burden on trying to make sure we carried out
Family First as the chairman and I, and conservatives and
liberals in the House, agreed. So that will be for the record.
My question for you--and I thank Senator Cassidy for his
courtesy--is, there has been bipartisan concern about this
whole effort of guidance from the Children's Bureau as it
relates to Family First. I am not going to get into all of this
wonky stuff about the difference between a guidance and a
regulation.
But there is a concern that the guidance is moving away
from what Chairman Hatch and I had in mind, particularly as it
relates to getting support for things that have to be done,
accrediting the facilities, and trying to make sure that people
get in the queue for accreditation, all of this kind of thing.
It is really a dollars and cents and priorities issue.
What I would like is to have you tell us, if you are
confirmed--and as I indicated, I have heard good things about
you--that you will commit to reviewing the guidance so that we
address some of these concerns of Democrats and Republicans. So
I hope that will be just a simple ``yes'' and then Senator
Cassidy can get his questions in and I can get out the door.
Ms. Darling. Yes, Senator, I will do that.
The Chairman. That takes care of that.
Senator Wyden. Okay.
Senator Cassidy, thank you. Thank you, Mr. Chairman.
The Chairman. Thank you.
Senator Cassidy?
Senator Cassidy. Thank you.
Hello, sir. I am going to speak to you and give kind of a
long prologue just to create context. But it is context that we
have to have to get your thoughts.
I am concerned about Social Security and Medicare. Clearly
we have to preserve the benefits for those who have been
promised these benefits. But the actuaries tell us that both
funds are in an incredible duress.
If we do nothing, the benefits must be cut significantly.
And this is not something kind of on the by-and-by. Medicare
goes bankrupt within 8 years. Social Security goes bankrupt in
2034. But I am told if we are to address it, we must address it
now, because that window is rapidly closing--again, for
context.
And some say because we do not look at the 10-year window,
we look at the 75-year window for Social Security, that that is
not as bad. But as was explained to me quite convincingly, it
is not just that we get through 75 years and we are okay,
rather we have to have a balance at the end of that 75 years
that can continue to pay benefits beyond. And I think that fact
is often ignored.
So we have to have the till full, if you will. It has to
have an actuarial balance.
So that said, what thoughts do you have about the correct
methodology and data as we look at policy options to preserve
these benefits? And what other thoughts do you have as to how
we preserve these programs, because I do think that is
something that you will be directly involved with in this
position?
Dr. Faulkender. Thank you, Senator.
You are absolutely correct that the changing demographics
in this Nation are creating some long-term stability concerns
for Social Security and for Medicare. And the sooner that we
address those challenges, the more flexibility that we have in
retaining the promise that has been made to our seniors.
So what we can offer at the Office of Economic Policy is,
there are a number of proposals in the academic community, and
a number of models that have been utilized in order to estimate
what the 10-year and 75-year implications are as we consider
modifications.
Senator Cassidy. Now what in the academic literature, what
are the options as to what we can do to not just get through
the 10-year window or the 75-year window, but actually to leave
our descendants in better shape?
Dr. Faulkender. Essentially, to bring them into perpetual
balance, we need to have over the entire life of the program,
greater equality between the current revenue steam and the
current benefits that are being offered.
Senator Cassidy. And what would be the--obviously, one
option would be to either cut benefits and/or raise the payroll
tax. Are there other options aside from that?
Dr. Faulkender. Yes. So there is also changing eligibility
in terms of when benefits begin or the generosity of the
benefits----
Senator Cassidy. Now, do I understand that European nations
have grandfathered in, if you will, changes in eligibility?
Dr. Faulkender. Generally speaking, the changes in
eligibility are brought in over time, much as we over time have
been raising the retirement age in Social Security from 65 to
67.
Senator Cassidy. Now, Medicare. I have a white paper,
``Making Health Care Affordable Again,'' on my website. And our
goal is to make Medicare more sustainable by lowering the cost
of health care.
Is there any academic literature on what rate of decrease
in the cost of health care would be required to make Medicare
more sustainable, because that is the one that is empty in 8
years?
Dr. Faulkender. Right, so the more immediate concern, as
you indicated, is Medicare. There are models out there that
would allow us to estimate what kind of decrease in medical
inflation we would have to realize in order to bring that
program into actuarial balance.
Senator Cassidy. Now there has been a little bit of a
decrease in medical inflation over the last--I think beginning
in 2007, I saw that there was a downward inflection. But
clearly that has not been sufficient to push out significantly
Medicare's bankruptcy.
Do you have an off-the-top-of-your-head sense of what we
would have to do to health-care costs or to Medicare payments
for health-care costs to further lower----
Dr. Faulkender. I do not have a specific number, but I
would be happy to get that back to you.
Senator Cassidy. And then lastly, there are a couple of
aspects to health care. It is the volume. It is the price per
unit, but also the number of units. Correct? And the makeup of
the units themselves. You can have a lower price, but if it is
of a more intense unit, then it is going to cost more.
Dr. Faulkender. Right.
Senator Cassidy. Any thoughts how all that factors in
beyond saying that that is part of it?
Dr. Faulkender. So there are some interesting experiments
across various States about modifying the fee-for-service model
in order to reduce quantities.
Senator Cassidy. Now, I do not have a sense that the ACOs
have actually significantly lowered costs, and indeed to the
degree that they have contributed to consolidation of health-
care systems--and there is data showing that once you have any
kind of consolidated health-care system, on average, costs are
up about 12 percent.
So again, any thoughts upon that statement, either to
debunk, or to disagree, or to agree?
Dr. Faulkender. So, if confirmed, I certainly will spend
more time familiarizing myself with some of the latest research
coming out about ACOs. As I mentioned before, I have been an
associate dean for the last year, more worried about my MBAs.
But I will certainly provide you with an assessment of the
literature on how those ACOs are doing.
Senator Cassidy. That was a nice sidestep, but thank you
very much.
I yield back.
The Chairman. Senator Cantwell?
Senator Cantwell. Thank you, Mr. Chairman.
I would like to ask Ms. Darling about--you might know our
State has a title IV-E waiver that has enabled our State to do
a lot of preventative child welfare programs, and I certainly
appreciate Senator Hatch's efforts in this area. The program
was designed to prevent foster care placements when possible.
A study done by the Washington Institute for Public Policy
found that these families who received this prevention were
significantly less likely to have children removed to foster
care. So I am glad that we have been able to get a larger
awareness on this federally, and that other States, hopefully,
will take up these same kinds of innovations. Knowing that
States have been very innovative, what will you do to take into
account these lessons and try to help transition other States
to these ideas?
Ms. Darling. Senator, thank you for that question. And I
think you are absolutely on target. When I think of all the
amazing work that is happening around the country, such as in
your State, real movement in outcomes for children using
prevention services, I think we need to lift those up and use
them as examples of how it can work in those States that need
to be moving more toward the prevention end to keep congregate
care down and to also move children towards reunification.
I am excited about the Family First Act and the potential
that it has to help us do that.
Senator Cantwell. I understand that guidance has not been
put out yet on that. Will you be transparent and open to making
sure this new guidance is out there and for a rulemaking and
public comment?
Ms. Darling. Senator, if confirmed, I will do that and work
with the committee to better understand the legislative intent
of everything that we put out as far as guidance so that we can
work with States to make the transition, especially for those
States with waivers.
Senator Cantwell. Thank you.
Well, I want to thank, again, the chairman for his work in
this area as well. I think we are showing that we are putting a
little bit of an ounce of prevention into the situation and
giving us much better results. So I hope that we can encourage
other States to do the same thing.
Dr. Faulkender, you spent a good deal of time researching
the complications of financial instruments and derivatives,
which is very important. Obviously, we have been very involved
in a lot of laws related to energy markets and oversights.
Will you work with the Commodities Future Trading
Commission, the Securities and Exchange Commission, and the
Department of Energy in making sure that we look at different
analytical tools on making sure that hedging and speculation--
my point is, we had to use in the Enron case a lot of research
from people who basically could tell you there were anomalies,
that the market was not price and demand.
And as we get into more complexity, will you work with
those agencies to make sure that we are evaluating information
that might give us data on the fact that markets are not
functioning the way that they should function?
Dr. Faulkender. Senator, yes.
If confirmed, I will work with economists at the Securities
and Exchange Commission, the CFTC, the Office of Financial
Research to ensure that we have a robust set of regulations and
capital requirements to ensure stability in those markets.
Senator Cantwell. Okay.
And just lastly on affordable housing--obviously, this has
been a big priority for both the chairman and myself. We were
successful in getting some things done on affordable housing,
but we need to do much more.
Obviously, the tax bill created some challenges for us in
that. So given the importance of housing, what do you think are
some of the major economic benefits of promoting more
affordable housing?
Dr. Faulkender. Senator, there is literature that suggests
that the investments that people make in their neighborhoods
and in their communities are greater when they have a financial
stake in the neighborhood through their home. And so those are
some of the primary benefits that we realize: there is greater
engagement in civic life as a result of home ownership.
Senator Cantwell. Well, we are facing this as a crisis
through not just major urban areas, but rural areas as well.
And I think that the actual--well, we have a couple of things
going on here. Definitely more demand, less supply. But this
issue of keeping pace with wage productivity is also causing a
problem. But I guarantee you, if you do not have a roof over
your head, you are not going to do much about wage
productivity.
So I just hope that in your new position, you could take a
look at this. There is legislation that some of my colleagues
on the other side of the aisle are also doing to further
analyze this issue.
But I would just say that we have to do much, much more
than we are doing as a Nation to get under this problem or else
we will just continue to see these kinds of--it is almost that
the problem becomes harder for us to deal with because of the
large-scale populations that are in demand of affordable
housing.
Dr. Faulkender. Senator, if confirmed, I look forward to
working with you and your team to see what we can do to make
housing more affordable and increase home ownership.
Senator Cantwell. Thank you.
Thank you, Mr. Chairman.
The Chairman. Well, thank you, Senator Cantwell.
I do not see any other Senators here.
I would like to thank you, everybody here for their
attendance and participation today. I would, once more, like to
thank Dr. Faulkender and Ms. Darling for their willingness to
serve in these roles. We really appreciate it.
We here at the committee appreciate the new tasks that you
will have before you, should you be confirmed. And we trust
that you will serve your agencies well.
So anyway, I ask that any member who wishes to submit
questions for the record, please do so by noon Friday, August
31st.
With that, we are grateful to you. We wish you the best. We
are going to move ahead as fast as we can, and we will call
this hearing adjourned.
Thank you.
[Whereupon, at 10:36 a.m., the hearing was concluded.]
A P P E N D I X
Additional Material Submitted for the Record
----------
Prepared Statement of Elizabeth Darling, Nominated to be Commissioner,
Administration on Children, Youth, and Families, Department of Health
and Human Services
Thank you, Mr. Chairman, Ranking Member Wyden, and members of the
committee, for the opportunity to appear before you as President
Trump's nominee to be the Commissioner for the Administration on
Children, Youth, and Families, serving those who are in greatest need
of hope and assurance that there can be a brighter future.
I am proud to have my family and many friends and colleagues across
the country watching this hearing today, including my two sons and
their wives, my daughter and her husband, my two grandchildren, and my
93-year-old mother. My father, who passed away 4 years ago, just before
my parent's 68th anniversary, is with me in spirit. Also watching are
members of the Gilpatrick family, who took my father into their home in
1940. Their benevolence has shaped the course of my life.
My youth was filled with opportunity. My parents modeled a strong
work ethic and an unwavering sense of personal responsibility. I was
keenly aware from an early age that others did not have the same
advantages that a loving family can bring. My dad was orphaned at age
8, grew up in a children's home, and found a foster family just as he
was aging out of care. He was a living example of the hope that a
stable, loving foster family can bring to the life of a child. Almost
80 years later, this foster family is still a large part of my life.
No doubt their magnanimity influenced the decision my husband and I
made at the age of 28 to adopt a 16-year-old from a group foster home
sponsored by our church. In many ways, our son served as a social
service proving ground. He came to us after years of unimaginable
abuse, and over the next 10 years as he sought to overcome its effects,
we stood firm in our love--and plenty of it was tough love and enforced
consequences--as he learned to take responsibility for the man he chose
to be. I am very proud of who he is today, as I am of all three of my
children.
I've had the privilege of working for many years in State and
Federal Government, including at HHS, on family and child welfare
policies and priorities. I believe my success has been due in large
part to an understanding of how government partners with faith-based
and community organizations to get its work done, and how policies can
either help or hinder service delivery and client outcomes.
ACYF spans two bureaus--the Family and Youth Services Bureau and
the Children's Bureau--which address a range of issues: child abuse and
neglect, foster care and adoption, homeless and runaway youth,
trafficked youth, adolescent pregnancy, and domestic violence. But
these issues are connected. To address any one of these concerns in
isolation is to ignore the underlying factors that characterize the
complexity of each.
With the recent passage of the Family First Prevention Services
Act, I am energized and optimistic about its potential to be a catalyst
for systemic change for those who support families experiencing
challenges. And with today's knowledge and understanding of the effects
of adverse childhood experiences and the resulting trauma that presents
in a myriad of ways, I feel a sense of urgency to support and encourage
all systems of care to deliver services through a multidisciplinary,
trauma-
informed lens.
I have seen what hope can do to change a life. I believe the
families that require our services do not just benefit from ``best
practices'' or from a ``continuum of care'' or from ``prevention
services.'' At the core of my being I know it is about relationships,
being in relationship with others, the human element, that one-on-one
supportive dynamic that is difficult for government to provide but can
often come through extended family, a place of worship, a community
center, a school, a teacher, a coach, a pastor, a mentor.
I bring to this position a deep understanding of the nonprofit
sector and its capacity to do what government can't. If I am confirmed,
I will be a tireless advocate for children, youth, and families in
crisis, and all caregivers and service providers who seek to help and
heal. Across this vast land, communities are coming together around
issues they have identified and seek to address together, drawing on
the strengths and resources of many to improve the health of their
communities. Whether the issue is opioid abuse, teen suicide, cyber-
bullying, teen pregnancy, sex trafficking, domestic violence, or child
abuse, I have seen that when communities come together, name a problem,
and own it, the power of relationships and the human element can
overcome many obstacles. And imagine if all were educated on the
effects of trauma and understood the possibility of healing the deepest
of wounds.
I thank President Trump for the opportunity to serve as the
Commissioner for ACYF, and I thank each of you for your consideration
of my nomination.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): My name is Elizabeth Marie
Darling; this is both my current and maiden name. Previous married
names include Elizabeth Darling Seale and Elizabeth Seale-Scott.
2. Position to which nominated: The position to which I have been
nominated is Commissioner, Administration for Children, Youth, and
Families within the Administration for Children and Families at HHS.
3. Date of nomination: March 19, 2018.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: I was born December 7, 1955 in Fort
Worth, TX.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list secondary and higher education institutions, dates
attended, degree received, and date degree granted):
Richfield High School, Waco, TX, 1971-1974, diploma.
Saint Mary's University, San Antonio, TX, January 1978-May 1978
(6 credit hours).
Baylor University, Waco, TX, 1974-1978, BS elementary education
(May 1978).
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment):
March 2009-present: CEO, OneStar Foundation, Austin, TX
(appointed by former Governor Rick Perry and currently serving
under Governor Greg Abbott).
July 2005-March 2009: COO, Corporation National and Community
Service, Washington, DC (5-year term appointment).
March 2003-July 2005: Deputy Secretary, State of Maryland
Department of Human Resources, Baltimore, MD (appointed by
Governor Bob Ehrlich).
March 2001-March 2003: Director, Center for Faith-Based and
Community Initiatives, U.S. DHHS, Washington, DC (appointed by
President George W. Bush) and Advisor on Presidential
Initiatives to the Commissioner, ACYF, Washington, DC.
May 2000-March 2001: Project director, Baptist Child and Family
Services, San Antonio, TX.
March 1980-May 2000: Full-time parent and volunteer board
member and fundraiser, various local and State nonprofits
including gubernatorial appointment as member and Vice-Chair,
Texas Human Services Board, Austin, TX (1997-2001).
February 1978-March 1980: Classroom teacher, Coke Stevenson and
Hobby Middle Schools in Northside ISD, San Antonio, TX.
10. Government experience (list any advisory, consultative, honorary,
or other part-time service or positions with Federal, State, or local
governments, other than those listed above):
1997-2001: Board member and Vice-Chair, Texas Human Services
Board, Austin, TX (appointed by Governor George W. Bush).
1996: Member, Governor's Advisory Task Force for Faith-Based
Community Service Programs. Strategic advisor during
development of publication, ``Faith in Action . . . A New
Vision for Church-State Cooperation in Texas'' (appointed by
Governor George W. Bush), Austin, TX.
11. Business relationships (list all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, other
business enterprise, or educational or other institution):
June 2007-present: Co-trustee, Family Revocable Living Trust.
July 2013-present Managing member/CEO, Onion Creek Press, LLC.
March 2009-present: CEO, OneStar Foundation, Austin, TX.
October 2017-present: Chair, America's Service Commissions
(ASC).
April 2011-December 2016: Chair, Camp Fire National Board of
Trustees.
12. Memberships (list all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable, and
other organizations):
Current
Chair, America's Service Commissions (ASC).
Member, Association of Fundraising Professionals (AFP).
Member, Texas Society of Association Executives (TSAE).
Member, American Society of Association Executives (ASAE).
Member, National Rifle Association (NRA).
Member, Texas State Rifle Association (TSRA).
Member Airplane Owners and Pilots Association (AOPA).
Member, Ninety-Nines International Organization of Women
Pilots.
Member, Baylor Alumni Association.
Member, Heritage Foundation.
Member Republican National Committee.
Member, Republican Party of Texas.
Past
Chair, Camp Fire National Board of Trustees.
Member, Board Texas Association of Business (TAB).
Member, Women's Fund Grants Committee Austin Community
Foundation.
Member, Texas State Society.
Member, Board of Trustees Buckner Baptist Benevolences:
Executive Committee, Budget and Development Committees.
Member; Board Bexar County Detention Ministries.
Vice Chair, Kendall County Republican Women's Club.
13. Political affiliations and activities:
a. List all public offices for which you have been a
candidate.
I have never been a candidate for public office.
b. List all memberships and offices held in and services
rendered to all political parties or election committees during
the last 10 years.
Member, Republican National Committee (donor).
Member, Republican Party of Texas (donor).
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years.
------------------------------------------------------------------------
Year of
Name of Recipient Amount Contribution
------------------------------------------------------------------------
Texans for Elizabeth Jones $250.00 2008
------------------------------------------------------------------------
Texans for Elizabeth Jones $250.00 2008
------------------------------------------------------------------------
Don Willett $500.00 2012
------------------------------------------------------------------------
Rick Perry $2,000.00 2012
------------------------------------------------------------------------
Rick Perry $2,000.00 2013
------------------------------------------------------------------------
Greg Abbott $2,000.00 2014
------------------------------------------------------------------------
Greg Abbott $2,000.00 2014
------------------------------------------------------------------------
Texans for Greg Abbott $500.00 2014
------------------------------------------------------------------------
Texans for Greg Abbott $1,000.00 2014
------------------------------------------------------------------------
Texans for Greg Abbott $250.00 2014
------------------------------------------------------------------------
Anthony Stacy $500.00 2015
------------------------------------------------------------------------
Texans for Greg Abbott $100.00 2015
------------------------------------------------------------------------
Texans for Greg Abbott $100.00 2015
------------------------------------------------------------------------
Texans for Greg Abbott $1,000.00 2015
------------------------------------------------------------------------
Texans for Greg Abbott $100.00 2015
------------------------------------------------------------------------
Donald J. Trump for President, Inc. $250.00 2016
------------------------------------------------------------------------
Donald J. Trump for President, Inc. $500.00 2016
------------------------------------------------------------------------
Donald J. Trump for President, Inc. $80.00 2016
------------------------------------------------------------------------
Donald J. Trump for President, Inc. $164.00 2016
------------------------------------------------------------------------
Donald J. Trump for President, Inc. $114.00 2016
------------------------------------------------------------------------
Donald J. Trump for President, Inc. $500.00 2016
------------------------------------------------------------------------
Donald J Trump for President, Inc. $400.00 2016
------------------------------------------------------------------------
Donald J Trump for President, Inc. $400.00 2016
------------------------------------------------------------------------
Donald J Trump for President, Inc. $400.00 2016
------------------------------------------------------------------------
Texans for Greg Abbott $100.00 2016
------------------------------------------------------------------------
Texans for Greg Abbott $100.00 2016
------------------------------------------------------------------------
Texans for Greg Abbott $100.00 2016
------------------------------------------------------------------------
Donald J. Trump for President, Inc. $80.00 2017
------------------------------------------------------------------------
Donald J. Trump for President, Inc. $164.00 2017
------------------------------------------------------------------------
Texans for Greg Abbott $100.00 2017
------------------------------------------------------------------------
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement):
1974 Red Cross Certificate of Merit.
2009 Woman of the Year in Nonprofit and Social Services by
National Association of Professional and Executive Women.
2014, 2015, 2016 NonProfit Times Power and Influence Top 50.
2017 America's Service Commissions (ASC) named to the ASC 20.
15. Published writings (list the titles, publishers, and dates of all
books, articles, reports, or other published materials you have
written):
------------------------------------------------------------------------
Title Publisher Date(s) of Publication
------------------------------------------------------------------------
What Kind of Leader Texas Association of January 2018 quarterly
Are You? Public Employee newsletter
Retirement Systems
(TEXPERS)
------------------------------------------------------------------------
OneStar Inaugural OneStar Website December 2017
Newsletter
------------------------------------------------------------------------
Interagency Posted on OneStar December 2009, 2010.
Coordinating Group Foundation Website 2011, 2012, 2013. 2014,
Legislative Annual 2015, 2016, 2017
Reports to the Texas
Legislature
------------------------------------------------------------------------
Re-Envisioning for NonProfit Times December 2016
Continued Percussion
------------------------------------------------------------------------
Rebalancing Public Gower August 2015
Partnership--Innovati
ve Practice Between
Government and
Nonprofits From
Around the World
(Chapter 3)
------------------------------------------------------------------------
An Army of Good Austin Business September 2014
Journal
------------------------------------------------------------------------
Parallax: Death and Self Published (Onion January 2014
Deceit in Texas Creek Press, LLC)
------------------------------------------------------------------------
Commentary: Make The Monitor News, February 2014
Service Part of our McAllen, TX
Texan Identity
------------------------------------------------------------------------
Member Profile OneStar Texas Association of March 2013, Vol. 28,
Foundation--Building Business Report Issue 3
a Stronger Nonprofit
Sector for a Better
Texas
------------------------------------------------------------------------
Is Grant-making Grantmakers for June 2011
Getting Smarter? Effective
Organizations (GEO)
------------------------------------------------------------------------
No Time for Ostriches Greenlights for January 2011
Nonprofit Success
------------------------------------------------------------------------
HHS Center for Faith- The White House July 2001
Based and Community
Initiatives Barrier
Report
------------------------------------------------------------------------
Down the Long Road Up Flight Training June 1996
Magazine
------------------------------------------------------------------------
16. Speeches (list all formal speeches you have delivered during the
past 5 years which are on topics relevant to the position for which you
have been nominated):
I have delivered relatively few formal speeches in the last 5
years. Most required only skeletal talking points. The one
exception was the testimony listed below.
March 28, 2017: Written and oral testimony before the Committee
on Education and the Workforce Subcommittee on Higher Education
and Workforce Training, ``Examining the Corporation for
National and Community Service and its Failed Oversight of
Taxpayer Dollars.''
June 2012: Speech for the dedication of the new dining hall at
Camp El Tesoro, Granbury, TX. This was in my capacity as chair
of the national board of trustees for Camp Fire. This was a
short informal speech about my childhood experiences at this
camp and the promise for Camp Fire camp programs to enrich and
teach young people. These were informal talking points.
July 2012: Round Rock Chamber of Commerce Power Luncheon, ``The
Nonprofit Sector and its Effect on the Economy.'' These are
talking points that include statistics on national, State and
local nonprofits, foundations, charitable giving, volunteering,
and social innovation.
March 2012: Camp Fire Promise to Practice. These are talking
points drafted for local Camp Fire Council CEOs related to the
new Camp Fire logo, branding, curriculum and methodology for
engaging young people and their families.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
My qualifications to serve as Commissioner of the
Administration on Children, Youth, and Families are in
alignment with the stated requirements and competencies in the
position description.
Twenty-seven years advancing child welfare and family policies
(related to child abuse and neglect, foster care, adoption,
family violence, teen pregnancy prevention, child and youth
development) through service on the Texas Human Services Board;
Advisor to the Commissioner for the Administration on Children,
Youth, and Families; Deputy Secretary of the Maryland
Department of Human Resources; COO of the Corporation for
National and Community Service; and CEO of OneStar Foundation
(the National Service Commission for AmeriCorps in Texas); as
well as decades of volunteer service on numerous nonprofit
boards related to child and family welfare.
Five years national leadership as chair of the board for Camp
Fire, a 106 year-old youth development organization using
research-based methodologies for curriculum and service
delivery in councils across the country serving almost 185,000
youth.
Extensive State and Federal management and budgeting experience
with oversight for hundreds of employees dispersed throughout
the country.
Deep knowledge of the nonprofit and philanthropic sectors and
their capacity to partner with government.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections with your present employers,
business firms, associations, or organizations if you are confirmed by
the Senate? If not, provide details.
I will sever all connections with my present employers,
business firms, associations, and organizations if I am
confirmed by the Senate.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
I have no plans, commitments, or agreements to pursue outside
employment, with or without compensation, during my service
with the government.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No person or entity has made a commitment or agreement to
employ my services in any capacity after I leave government
service.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
If confirmed by the Senate, I expect to serve out my full term
or until the next presidential election, whichever is
applicable.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
My interest in BlackRock Health Sciences Opps Svc held within
my 401(k), posed a potential conflict of interest, therefore,
even though it appears on the OGE278e, please note that I
divested my interest in it on December 20, 2017, the date I
finalized the OGE278e.
My co-trusteeship of the Ralph and Adelaide Darling Family
Revocable Living Trust poses a potential conflict of interest.
My position as Managing Member/CEO of Onion Creek Press, LLC, a
vehicle for self-publishing, poses a potential conflict of
interest.
My position as chair of the board of America's Service
Commissions poses a potential conflict of interest.
My current employment as CEO/president of OneStar Foundation
poses a potential conflict of interest.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
June 2007-present: Co-trustee, Family Revocable Living Trust,
Austin, TX.
July 2013-present: Managing member, Onion Creek Press, LLC, a
vehicle for self-publishing.
3. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. Activities
performed as an employee of the Federal government need not be listed.
In March 2017, I provided the Texas congressional delegation
with information on the impact of national service (AmeriCorps
and Senior Corps) in our State in response to proposed
elimination of the Corporation for National and Community
Service.
4. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
To avoid potential conflict of interest, I will resign as co-
trustee of the Ralph and Adelaide Darling Family Revocable
Living Trust, upon confirmation.
To avoid potential conflict of interest, I will resign as
managing member/CEO of Onion Creek Press, LLC, a vehicle for
self-publishing, upon confirmation.
To avoid potential conflict of interest, I will resign as chair
of the board of America's Service Commissions, upon
confirmation.
To avoid potential conflict of interest, I will resign as CEO/
president of OneStar Foundation, upon confirmation.
5. Two copies of written opinions should be provided directly to the
committee by the designated agency ethics officer of the agency to
which you have been nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal impediments to
your serving in this position.
(Please see copies from OGE).
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency,
professional association, disciplinary committee, or other professional
group? If so, provide details.
I have never been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of
ethics for unprofessional conduct before any court,
administrative agency, professional association, disciplinary
committee, or other professional group.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? If so, provide details.
I have never been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for a
violation of any Federal, State, county, or municipal law,
regulation, or ordinance, other than a minor traffic offense.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
Month/year: December 1984
Adoption of Jon Matthew Lewis
By Daniel and Elizabeth Seale
Name change Jonathon Kyle Seale
Dallas County Courthouse
600 Commerce Street
Dallas, TX 75202
Month/year: May 2000
Uncontested divorce for irreconcilable differences
Elizabeth Darling Seale v. Daniel Kyle Seale
Bexar County Court House
100 Dolorosa
San Antonio, TX 78205
Month/year: December 2003
Contested divorce ultimately resolved by agreement
Elizabeth Seale-Scott v. George Robert Scott, III
Fairfax County Circuit Court
4110 Chain Bridge Road
Fairfax, VA 22030
There were 2 post-divorce contempt actions filed in the same
case/court against Mr. Scott for violations of the divorce
agreement in 2005 and 2009.
Month/year: October 2011
Post-divorce contempt action against Mr. Scott to register
Virginia contempt order in Florida (where Mr. Scott was then
living) and enforce Virginia orders. Elizabeth Darling v.
George Robert Scott III
Circuit Court 16th Judicial Circuit Monroe County, Florida
302 Fleming Street
Key West, FL 33040
The final judgment of March 2012 found Mr. Scott in violation
of both Virginia orders and found that he took the actions to
post an offensive website and send disparaging materials
through the mail ``anonymously'' from Florida. He was ordered
to remove all webpages and social media postings. The court
also named a forensic attorney and granted her the authority to
``take any and all measures to remove such content or material
immediately upon discovery of it and to further instruct the
host entities not to allow the same or any like or similar
content or material to be restored or to be re-established.''
Mr. Scott was ordered to pay attorney's fees.
Month/year: January 2015
Frivolous lawsuit filed by Mr. Scott alleging a conspiracy
George R. Scott III v. James Richard Perry, Elizabeth M.
Darling, The Texas Governor's Office, and The OneStar
Foundation of Texas
U.S. District Court for the Western District of Texas
501 West Fifth Street, Suite 1100
Austin, TX 78701
The case was dismissed on all counts by the court and sanctions
were awarded against Mr. Scott for having filed it. Further,
the court barred Mr. Scott from filing anything similar in the
future without going through the judge first.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
I have never been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor
traffic offense.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
I believe I have had the opportunity above to share with the
committee information pertinent to my nomination. I am honored
and eager to serve.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
If I am confirmed by the Senate, I am willing to appear and
testify before any duly constituted committee of the Congress
on such occasions as I may be reasonably requested to do so.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
If I am confirmed by the Senate, I am willing to provide such
information as is requested by such committees.
______
Questions Submitted for the Record to Elizabeth Darling
Questions Submitted by Hon. John Thune
Question. While feedback on the passage of the Family First Act has
been positive, one thing that continues to concern those working on the
front lines in South Dakota is the shortage of foster families. In
particular, we are in the greatest need of homes for Native American
children, groups of siblings, and kids with medical needs. When kids
cannot be placed with families, what ideas will you bring to this
position to help empower states to find more qualified foster families?
Answer. Foster parent recruitment is an ongoing challenge, and with
the FFPSA, there is still great need as we look to foster parents to
care for some of the higher-needs children. If confirmed, I will look
to the States to find those with the most effective recruitment and
retention practices. All children deserve a loving home and the best
possible chance for successful adulthood. I believe that communities
must come together to provide culturally relevant, ACE and trauma-
informed, integrated systems of care for all children and youth in care
and their biological and foster parents as well. I also believe that
the best recruitment often comes from within the culture itself,
speaking in familiar terms and setting norms that are often more easily
embraced than if approached by a government entity or even a well-
intended but culturally insensitive caseworker or volunteer.
Question. As you know, both the Children's Bureau and the Family
and Youth Services Bureau at the Administration on Children, Youth, and
Families fund important programs to support tribal child welfare
programs and family violence prevention efforts. If confirmed, will you
commit to working to understand the unique needs of Indian country and
finding culturally appropriate solutions to address challenges on the
reservations?
Answer. If confirmed, I commit to working to understand the needs
of Indian country and working with you and your staff to address their
unique issues.
______
Questions Submitted by Hon. Ron Wyden
Question. Family First is being implemented through guidance and
not regulations, which means there is no formal process for the public,
States, and stakeholders to comment.
Members on both sides of the aisle have expressed concerns about
elements of the recent guidance coming from the Children's Bureau,
which you would oversee. It's my view that elements of that guidance
are not consistent with congressional intent.
If confirmed, would you commit to revisiting and revising this
guidance?
Answer. If confirmed, I will commit to working to ensure the Family
First Prevention Services Act is fully implemented, as adopted by
Congress, and will be taking a close look at current and proposed
guidance from within ACYF.
Question. Do you support proposals that would cap Federal funding
for foster care services?
Answer. If confirmed, I commit to learning more about various
funding strategies, including capped allocation strategies. I support
maximum flexibility to allow States to be innovative and collaborative
across systems, both public and private, to address local needs in the
most effective way possible. The FFPSA gives States the opportunity to
bring communities together to provide preventive and supportive
services for families, youth, and children with the goal of reducing
the number of child removals and the need for ever-increasing State and
Federal funding.
Question. Do you believe taxpayer-funded child welfare agencies
should be allowed to refuse to serve children and families on the basis
of their faith background, sexual orientation, or gender identity?
Answer. All young people in foster care, including those who face
unique challenges, need the support of a nurturing family to help them
negotiate adolescence and grow into healthy adults. I will work to
ensure all children in out-of-home care will find a loving and
respectful home. Should I be confirmed, I will commit that all ACYF-
funded programs will treat all children and youth fairly and with
compassion and respect for their human dignity. Should I have the
opportunity to serve as Commissioner of ACYF, I will be committed to
seeing that the agency supports the well-being of all the children and
youth its programs touch. I will promote positive youth development for
all young people to increase their chances for success as healthy
adults.
______
Questions Submitted by Hon. Robert Menendez
Question. During your hearing, you spoke about your support for a
multidisciplinary community-based trauma-informed integrated system of
care.
As Commissioner, how will you work to ensure the trauma-informed
care uses up-to-date evidence-based best practices?
Answer. If confirmed, I will work with the HHS Secretary and ACF
Assistant Secretary to build the body of evidence-based practices. I
would promote the most efficient system changes to facilitate the
implementation of the most up-to-date,
evidence-based, and trauma-informed care for families, youth, and
children.
Question. How will you ensure all partners adhere to the highest
standards of care and hold them accountable to ensure the safety and
well-being of all children under your care regardless of where they are
located?
Answer. I believe that, by investing in recruitment and retention
strategies that include community-based, trauma-informed,
multidisciplinary, integrated services that foster parents and foster
family homes will have a greater chance of success in caring for
children and youth who are in their care. Accountability can be
reinforced and facilitated through the gathering of timely, appropriate
and accurate data for tracking and monitoring the safety and well-being
of all children in care.
Question. How will you work to leverage existing Federal resources
and coordinate across HHS to provide consistent trauma-informed care?
Answer. Through many HHS agencies, including SAMHSA, ACF, and ACYF,
the Department has been intentional about integrating the concept of
trauma-informed care throughout their programs. HHS provides resources
for States and providers in the successful implementation of trauma-
informed methodologies. If confirmed, I will support and work to
augment the body of learning around successful trauma-informed
practices.
Question. As Family First prepares to go live, will you commit to
providing States the resources and guidance to achieve Family First's
goals of prevention and keeping families together?
What specific ideas do you have to help States extract maximum
value from the flexibility Family First provides them in meeting the
needs of children?
Answer. If confirmed, I will commit to providing States with the
information and resources available to achieve the goals of FFPSA.
Family First has brought the concept of true prevention to the
forefront of the discussion within child welfare. Successfully reducing
the numbers of children and youth entering care will require a whole-
community, person-centered approach that engages multiple systems of
care.
______
Questions Submitted By Hon. Thomas R. Carper
Question. One of the challenges facing our Nation's foster care
system is the risk of improper prescribing of psychotropic drugs to
foster children.
I'm a firm believer in addressing root causes, and oftentimes, the
underlying causes of foster children's trauma are brushed aside in
favor of prescribing these mind-altering medications, which are simply
not the solution for some of their problems.
As a senior member of the Homeland Security and Governmental
Affairs Committee, I've been pleased to work with colleagues on both
sides of the aisle--including members on this committee: Senator Wyden
and Senator Grassley--on the best ways we can work with HHS, States,
and stakeholders to help curb this difficult issue.
How do you believe States and Medicaid managed care organizations
can play a role in ensuring appropriate oversight of improper
psychotropic prescriptions?
If confirmed, how would you work with Congress, States, and
stakeholders to help address this ongoing problem?
Answer. I am concerned about safe, appropriate, and effective use
of psychotropic medications among children in foster care. I look
forward to working with Administrator Verma and the CMS team to promote
coordination for behavioral health care that is evidence-based and
trauma-informed to ensure that children in out-of-home care receive
high-quality health care when entering the child welfare system and
that their needs are reassessed in an appropriate and timely manner. I
am specifically excited to work with CMS on the new Integrated Care for
Kids (InCK) model that is aimed at reducing expenditures and improving
the quality of care for children covered by Medicaid and the Children's
Health Insurance Program (CHIP).
Question. In your testimony, you indicated that stakeholders in the
child welfare system can learn a lot when they look at care through a
trauma-informed lens.
And as you know, LGBT children face difficulties in the foster care
system because of discrimination or poor treatment based on their
sexual orientation or gender identity.
Do you believe that a child welfare provider should be allowed to
deny services to same-sex couples or LGBT children based on their
religious or moral convictions?
If confirmed, in what ways would you and ACYF work with religious
affiliated foster care providers who choose to deny services to LGBT
couples and children in order to help these children find a loving and
respectful home?
Answer. All young people in foster care, including those who face
unique challenges, need the support of a nurturing family to help them
negotiate adolescence and grow into healthy adults. I will work to
ensure all children in out-of-home care will find a loving and
respectful home.
Should I be confirmed, I will commit that the programs within ACYF
will treat all children and youth fairly and with compassion and
respect for their human dignity. I am committed to seeing that the
agency supports the well-being of all the children and youth its
programs touch, and promotes positive youth development that includes
quality care and nurturing for success as healthy adults.
Question. If confirmed, one of your responsibilities would be to
oversee adolescent pregnancy programs in child welfare.
When I was Governor of Delaware, I helped establish the Family
Services Cabinet Council to help address issues like unintended
pregnancies.
In Delaware, which has one of the highest unintended pregnancy
rates in the country, one of the things we've been doing is to help
increase access to contraception, specifically LARCs (long-acting
reversible contraceptives).
But some studies have indicated foster youth have trouble accessing
contraception. In your experience, what are the barriers to foster
youth getting full access to contraception?
If confirmed, how would you work with States and child welfare
providers to lower these barriers to contraception?
Answer. If confirmed, I will work to ensure that the programs
within the Family and Youth Services Bureau promote the prevention of
pregnancy and the spread of sexually transmitted diseases by providing
the information and skills needed for sexual risk avoidance and to
increase the protective factors needed to promote optimal health, as
well as medically accurate information on contraception.
______
Questions Submitted by Hon. Sherrod Brown
supporting caseworkers
Question. As you know, children are entering the child welfare
system at alarming rates and the child welfare workforce is struggling
to meet their needs. Child welfare workers play a critical role in
ensuring children have safe and healthy homes. We must ensure workers
are properly trained to navigate complex cases of child abuse and
neglect and are equipped with the proper resources to support our
children. This will help keep our children safe, reduce staff turnover
rates, and retain a qualified workforce.
If confirmed, how will you work to ensure States maintain the
supports necessary to properly train and retain a high-quality child
welfare workforce?
Answer. I believe that, by investing in ACE and trauma-informed
recruitment, training and retention strategies, child welfare workers
will be better equipped for the challenging role they play in working
with biological, foster, and adoptive families. Child welfare workers
are often overlooked and their own care and welfare neglected. If
confirmed, I will promote a philosophy of care and healing for child
welfare workers based on a multidisciplinary, community-based system
that promotes and supports these front-line workers. I will also
promote the importance of sound, up-to-date interoperable technology
systems that ensure timely, appropriate, accurate data to inform policy
and practice. Such systems also have the promise of reducing
unnecessary and redundant data entry that affects the amount of time
caseworkers can actually respond to, and interact with, children,
families, and youth.
preventing child fatalities
Question. In my State, there have been a number of tragic child
abuse-related deaths, which is unacceptable. It is critical that we do
more to support State efforts to prevent these tragedies. It is
particularly important to identify early risk factors of abuse and
neglect to swiftly intervene before it is too late.
What role do you think the Administration on Children, Youth, and
Families should play to support States in the development of child
abuse prevention plans required by law? What impact do you think
increased data sharing and cross-agency collaboration would have on
preventing child abuse-related deaths? If confirmed, how would you
prioritize the prevention of early risk factors to prevent future
tragedies?
Answer. If confirmed, I commit to promoting the importance of
increased data sharing and cross-agency collaboration to better
understand the link between early warning signs, such as a call to a
hotline, and child maltreatment and fatalities. I will also work within
HHS and with States to better understand where common definitions might
be employed to better aggregate fatality data so we can promote and
encourage practices that we know can and do often prevent child
fatalities.
implementing the family first prevention services act (ffpsa)
Question. The Administration on Children, Youth, and Families will
have a major role in implementing provisions from the Family First
Prevention Services Act, which was signed into law as part of the
Bipartisan Budget Act earlier this year.
As Congress considers the FY 2019 and FY 2020 appropriations bills,
are there steps that can be taken to ensure States like Ohio have
adequate resources to adjust to the new system under Family First so
that States do not face the cliff effect of an immediate loss in
funding? If confirmed, what will you do to advocate for adequate
resources for States under the new system, and ensure States have the
tools they need to be successful?
Answer. I will commit to ensuring the Family First Prevention
Services Act is fully implemented, as adopted by Congress. The move to
support families and children at imminent risk of removal is a bold
step in addressing prevention services (mental health, substance abuse,
parent skills training) to ideally slow the number of children and
youth who are removed from their family and placed in out-of-home care.
I believe that the proper resources are needed to implement FFPSA
fully.
kinship supports
Question. As you know, the addiction epidemic has had a
particularly devastating impact on States like Ohio. As a result,
children are left without anyone to care for them and grandparents and
relatives have taken on the role of caretaker. In many cases,
grandparents do not receive any additional support to provide for their
grandchildren. In my State, kinship supports and interventions play a
critical role to prevent unnecessary placements into foster care and
improve outcomes for children.
If confirmed, what are your plans to ensure grandparents and other
family members involved in kinship care have the resources necessary to
provide for these children? How would you work to ensure grandparents
and relatives receive the assistance they need to raise their children
without unnecessary restrictions?
Answer. If confirmed, I will be a tireless advocate for kinship
care and the supports necessary to allow family caregivers to assume
the care of children and youth affected by family addiction. I strongly
believe that such support must come through a multidisciplinary, ACE
and trauma-informed, integrated system of care that is community-based.
Such a system includes courts, Court Appointed Special Advocates
(CASA), medical professionals, teachers, attorneys ad litem, judges,
law enforcement, child welfare workers, and many others coming together
as a system of caring supports and resources for kin caregivers and the
biological parent(s) who are affected by addiction.
______
Questions Submitted by Hon. Claire McCaskill
Question. Children who have a history of interactions with the
child welfare system are at increased risk of becoming trafficking
victims. If confirmed, what specific actions would you plan on taking
to reduce this risk? Additionally, what steps would you encourage State
agencies to take to address this issue?
Answer. If confirmed, I will work with the Family and Youth
Services Bureau and other pertinent offices to promote and support
multidisciplinary, trauma and Adverse Childhood Experience (ACE)-
informed, integrated systems of care for trafficked youth. Timely,
appropriate and accurate data is critical to the successful
implementation of such a system of care. I will work with ACYF
leadership and State agencies to enhance the ease of, and access to,
background checks and to ensure timely follow up with sponsors after
placement to ensure that adequate supports are in place to for child
and youth safety, in order to reduce the risk that such children become
trafficking victims.
Question. In your opening statement, you mentioned that you have an
understanding of ``how policies can either help or hinder service
delivery and client outcomes.'' Can you provide examples of policies
that have hindered service delivery within the child welfare system?
Answer. Most, if not all, States require that every child-placing
agency certify and train respite caregivers and babysitters, which is
critical to the safety and well-being of children and youth in care.
When multiple child placing agencies have different certification and
training standards, individuals who want to help support foster parents
by providing respite care must go through each different agency's
protocols, which can be costly and time intensive. One solution I am
aware of was agreed to by over a dozen child-placing agencies in
partnership with the State's child welfare agency. This collaborative
created a common certification and training program that increased
exponentially the number of respite caregivers available to foster
parents. This State policy was a barrier; however, working with the
community, the issue was effectively addressed.
Question. The Family First Prevention Services Act was signed into
law in February. Please explain how, if confirmed, you plan to approach
oversight of the implementation of this act.
Answer. If confirmed, I will work to improve child welfare
accountability and oversight at all levels through effective monitoring
and appropriate oversight by the Children's Bureau. I will work to
achieve the goals of promoting family placements, improved caseworker
training, annual State reviews, reporting of child maltreatment
fatalities, promoting the importance and relevance of Child and Family
Service Reviews and ensuring the process leads to meaningful
improvement and reform. I will also work within ACF to better
understand where common definitions are needed to ensure data
integrity.
______
Questions Submitted by Hon. Sheldon Whitehouse
Question. You have talked about your interest in expanding the pool
of available foster families to ensure that all foster children can be
placed with safe, loving families. I am concerned about efforts in some
States to allow child welfare organizations to refuse to work with
certain potential adoptive families, citing their religious beliefs. Do
you agree that child welfare organizations should be prohibited from
discriminating against potential adoptive families if they receive
Federal funding? Specifically, do you believe child welfare
organizations should be prohibited from discriminating against LGBTQ
families?
Answer. All young people in foster care, including those who face
unique challenges, need the support of a nurturing family to help them
negotiate adolescence and grow into healthy adults. If confirmed, I
will work to ensure all children in out-of-home care will find a loving
and respectful home.
Question. Organizations in my home State of Rhode Island have been
working to expand the number of foster parents in Rhode Island with an
eye toward recruiting diverse foster parents. For example, Foster
Forward in Rhode Island has partnered with organizations like the NAACP
to offer Spanish language training courses for prospective foster
parents. If confirmed, how will you work to improve Federal support for
initiatives to recruit diverse foster parents?
Answer. Foster parent recruitment is an ongoing challenge, and with
the FFPSA, the need is still greater as we look to foster parents to
care for some of the highest need children. If confirmed, I will look
to the states to find those with the most effective recruitment and
retention practices. All children deserve a loving home and the best
possible chance for successful adulthood. I believe that communities
must come together to provide culturally relevant, ACE- and trauma-
informed, integrated systems of care for all children and youth in out-
of-home care and their biological and foster parents as well.
______
Prepared Statement of Michael Faulkender, Ph.D., Nominated to be
Assistant Secretary for Economic Policy, Department of the Treasury
Chairman Hatch, Ranking Member Wyden, and distinguished committee
members, I am honored to be with you this morning as the nominee for
Assistant Secretary for Economic Policy at the Department of Treasury.
I am extremely grateful to Secretary Mnuchin and the President for
selecting me for this position.
I would like to take a moment to introduce the members of my family
who are here with me today: my wife Maria of 14 years, our two children
Lauren (12) and Catherine (8), and my dad and step-mom William and
Connie Faulkender. I would not be here today without the unwavering
support of my family members who are here with me today and those who
were not able to attend but are watching from home.
For the last 16 years, I have served as a finance professor, the
last 10 years at the University of Maryland. I have also taught at
Washington University in St. Louis, Northwestern University, and the
University of Pennsylvania.
My research examines the major factors behind firm financial
decision-making such as investment, capital raising, capital
distribution, risk management, and executive compensation. I have
documented, written about, and taught to others how firms respond to
the various incentives and frictions that exist in our economy. I have
seen some of the intended results, but also some of the unintended
consequences, of regulation.
For the last year and a half, I have also had the privilege of
serving as an associate dean, leading the faculty and staff in the
delivery of our MBA and specialty masters programs and ensuring that
our graduates have the applied technical and leadership skills that
will propel them in their careers.
As a career academic, my perspective on public policy has always
been from outside the government, documenting the outcomes after the
changes in law or regulation have been implemented. I am honored and
incredibly excited by the opportunity to advise and participate in the
crafting of those laws and rules.
I believe that the academic community has an enormous depth of
knowledge and rigor to bring to policy discussions and debates about
the structure of our economy. As we continue to transition towards a
more information-based economy and update the way that our economy is
taxed and regulated, I believe that I can make a strong contribution to
the important leadership role of the Department of the Treasury.
Based on my conversations with people who have previously held this
role, I know that the Department is home to a strong career staff of
economists. If confirmed, I look forward to leveraging their
substantial experience and expertise to serve the American people and
address the economic opportunities and challenges confronting our
Nation. The decisions made here in Washington have enormous
consequences, so it is critical that proposals are subjected to
rigorous and thoughtful assessment before being enacted and
implemented. That is the approach I have taken to all of my academic
work, and, if I am confirmed, that is the same standard I pledge to you
will be generated by the Office of Economic Policy.
It is an enormous privilege to appear before you today, and I look
forward to your questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Michael (Mike) William
Faulkender.
2. Position to which nominated: Assistant Secretary for Economic
Policy for the Department of the Treasury.
3. Date of nomination: April 9, 2018.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: September 25, 1974, Sacramento, CA.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list secondary and higher education institutions, dates
attended, degree received, and date degree granted):
El Camino Fundamental High School, Sacramento, CA, 1988 to
1992.
University of California, Davis; BS managerial economics, 1992
to 1994.
Northwestern University, Evanston, IL; Ph.D. finance, 1997 to
2002.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment):
First Interstate Bank.
Customer service representative, Roseville, CA, 1994 to 1995.
Customer service supervisor, Roseville and Sacramento, CA, 1995
to 1996.
Wells Fargo Bank.
Agent officer, Sacramento, CA, 1996.
Kellogg School of Management, Northwestern University.
Lecturer, 2001 to 2002.
Visiting assistant professor of finance, 2007 to 2008.
Olin School of Business, Washington University, St. Louis.
Assistant professor of finance, 2002 to 2008.
Robert H. Smith School of Business, University of Maryland.
Assistant professor of finance, 2008 to 2012.
Associate professor of finance, 2012 to 2017.
Director of master of finance program, 2012 to 2017.
Professor of finance, 2017 to present.
Associate dean of masters programs, 2017 to present.
The Wharton School, University of Pennsylvania.
Visiting associate professor of finance, 2017.
Bureau of Economic Analysis.
Special sworn researcher, 2013 to present.
10. Government experience (list any advisory, consultative, honorary,
or other part-time service or positions with Federal, State, or local
governments, other than those listed above):
Bureau of Economic Analysis.
Special sworn researcher, 2013 to present.
11. Business relationships (list all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, other
business enterprise, or educational or other institution):
Associate dean, Robert H. Smith School of Business, University
of Maryland.
12. Memberships (list all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable, and
other organizations):
Board member, Midwest Finance Association, 2016 to present.
Associate editor, Journal of Finance, 2016 to 2017.
Associate editor, Journal of Financial Services Research, 2010
to present.
Co-editor, Finance Research Letters, 2013 to 2014.
Member, American Finance Association, 2002 to present.
Clarksville Overlook Homeowners Association:
Member, 2008 to 2015.
Treasurer, 2011 to 2012.
President, 2013 to 2014.
13. Political affiliations and activities:
a. List all public offices for which you have been a
candidate.
None.
b. List all memberships and offices held in and services
rendered to all political parties or election committees during
the last 10 years.
I am a registered Republican and have previously donated to the
party in small amounts.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years.
None that I can recall. I believe the last donation was in the
mid-2000s.
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement):
Krowe Teaching Award, 2016.
S.M.I.T.H. Faculty Award, voted by MBA students, 2016.
Distinguished Teaching Award, 2013-2014 and 2014-2015.
Most Engaged Professor Award, 2014, 2015, and 2017.
``Investment and Capital Constraints: Repatriations Under the
American Jobs Creation Act'' (with Mitchell Petersen),
recipient of Barclays Global Investors/Michael Brennan Best
Paper Award at Review of Financial Studies (May 2013).
``Cash Flows and Leverage Adjustments'' (with Mark Flannery,
Kristine Watson Hankins, and Jason Smith), recipient of the
Jensen Prize: second prize for 2012 best papers published in
the Journal of Financial Economics in the area of corporate
finance, Summer 2013.
``Does the Source of Capital Affect Capital Structure?'' (with
Mitchell Petersen), recipient of Barclays Global Investors/
Michael Brennan Best Paper Award--runner up at Review of
Financial Studies, June 2007.
``Hedging or Market Timing? Selecting the Interest Rate
Exposure of Corporate Debt,'' nominated for the Brattle Prize
at Journal of Finance, 2005.
James and Marcile Reid Chair, Olin Business School, 2006-2007.
Reid Teaching Award, Olin Business School, January 2007.
Reid Teaching Award, Olin Business School, September 2006.
Fellow, Center for Financial Research, FDIC, 2004-2006.
Doctoral Teaching Award, Kellogg School of Management, 2001-
2002 academic year.
University Scholar, Northwestern University, 1997-2000.
15. Published writings (list the titles, publishers, and dates of all
books, articles, reports, or other published materials you have
written):
``Hedging or Market Timing? Selecting the Interest Rate
Exposure of Corporate Debt,'' Journal of Finance 60, April
2005, nominated for Brattle Prize.
``Does the Source of Capital Affect Capital Structure?'' (with
Mitchell Petersen), Review of Financial Studies 19, Spring
2006, recipient of Barclays Global Investors/Michael Brennan
Best Paper Award--runner up (2006).
``Corporate Financial Policy and the Value of Cash'' (with Rong
Wang), Journal of Finance 61, August 2006.
``Executive Compensation: An Overview of Research on Corporate
Practices and Proposed Reforms'' (with Dalida Kadyrzhanova, N.
Prabhala, and Lemma Senbet), Journal of Applied Corporate
Finance, Winter 2010.
``Inside the Black Box: The Role and Composition of
Compensation Peer Groups'' (with Jun Yang), Journal of
Financial Economics 96, May 2010.
``The Two Sides of Derivatives Usage: Hedging and Speculating
With Interest Rate Swaps'' (with Sergey Chernenko), December
2011, Journal of Financial and Quantitative Analysis vol. 46,
issue 6.
``Cash Flows and Leverage Adjustments'' (with Mark Flannery,
Kristine Hankins, and Jason Smith), 2012, Journal of Financial
Economics vol. 103, issue 3, recipient of the Jensen Prize:
second prize for 2012 best papers published in the Journal of
Financial Economics in the area of corporate finance.
``Investment and Capital Constraints: Repatriations Under the
American Jobs Creation Act'' (with Mitchell Petersen), Review
of Financial Studies 25, November 2012, recipient of Barclays
Global Investors/Michael Brennan Best Paper Award (2012).
``Is Disclosure an Effective Cleansing Mechanism? The Dynamics
of Compensation Peer Benchmarking'' (with Jun Yang), Review of
Financial Studies, 26, March 2013.
``Taxes and Leverage at Multinational Corporations'' (with
Jason Smith), 2016, Journal of Financial Economics vol. 122,
issue 1, lead article.
``Understanding Precautionary Cash at Home and Abroad'' (with
Kristine Hankins and Mitchell Petersen), 2018, working paper.
16. Speeches (list all formal speeches you have delivered during the
past 5 years which are on topics relevant to the position for which you
have been nominated):
Not applicable. I have given a few graduation speeches in my
capacity as associate dean.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
For the past 20 years, I have been studying and researching
economics and finance. My recent research has been at the
intersection of finance and public policy. That work analyzing
how corporations have responded to various laws and regulations
will serve me well in advising the administration and the
Congress on how pending legislation or regulation may impact
corporate and individual decision-making. In addition, I have
held administrative roles that will prepare me to lead a team
of economists in the mission of the office.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections with your present employers,
business firms, associations, or organizations if you are confirmed by
the Senate? If not, provide details.
I will take an unpaid leave of absence from the University of
Maryland. I will resign from my position as associate dean of
masters programs at the Smith School of the University of
Maryland. I have resigned from the Midwest Finance Association
board of directors.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
I will not pursue outside employment during my service.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
I will retain my tenured professor of finance position at the
University of Maryland and expect to return there upon
completion of my service.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
I expect to serve until the next presidential election, subject
to maintaining my tenure status at the University of Maryland
(I must renew my leave annually).
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
My father-in-law is managing director of Apollo Enterprises, a
privately held conglomerate engaged in engineering,
construction, manufacturing, and farming in Zambia. His
business partner is Alexander Chikwanda, formerly the Minister
of Finance of Zambia.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
During the course of the nomination process, I have engaged in
discussions with career ethics staff and the Office of
Government Ethics regarding potential issues arising out of my
financial holdings, past income, and past employment
relationships. These have been addressed in my ethics
agreement. I am not aware of any other potential conflicts of
interest.
3. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. Activities
performed as an employee of the Federal government need not be listed.
Much of my research has public policy implications, and some of
it has been cited in white papers that advocate particular
legislative outcomes. In addition, I have been interviewed by
numerous journalists over time regarding a variety of
legislation and regulation.
4. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
I have executed an ethics agreement following discussions with
career staff in the Treasury Department and the Office of
Government Ethics and will abide by the terms of such
agreement. In addition, I am committed to following all
applicable ethics laws. If I identify a potential conflict of
interest, I will consult with ethics counsel.
5. Two copies of written opinions should be provided directly to the
committee by the designated agency ethics officer of the agency to
which you have been nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal impediments to
your serving in this position.
Copies have been provided.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency,
professional association, disciplinary committee, or other professional
group? If so, provide details.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
I was sued over a traffic accident that occurred in June 2010.
The civil lawsuit was filed in 2013 and settled by State Farm
in 2014 for 2014. The civil claim was dismissed. The case was
filed in Prince George's Country, MD as Porter v. Faulkender,
case number CAL13-03328.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Michael Faulkender, Ph.D.
Questions Submitted by Hon. Orrin G. Hatch
Question. The tax cuts and reform bill that President Trump signed
into law last December includes significant incentives for capital
investment through full expensing, or what's known as 100-percent
``bonus'' depreciation. The effects of strong capital investment
include higher productivity and higher wages. My friends on the other
side of the aisle like to point at current data suggesting that the tax
bill is a failure because we aren't yet seeing enormous upticks in
those measures. Dr. Faulkender, do you believe that it may take a
period of time for such increased capital investment to provide the
intended results--sustained higher productivity and wages? Do you think
that these are the types of incentives needed to build a strong
foundation for further and higher sustained economic growth?
Answer. Incoming economic data show a notable rise in business
investment in the first half of this year, likely in part due to the
new tax law. Meanwhile, business survey data and other forecasts
provide preliminary signs that manufacturing and small businesses have
raised expectations of capital expenditures over at least the next
year.
The full effects of the tax bill on the real economy will take a
few years to be fully realized. First, companies often make their large
capital expenditure decisions as part of their strategic planning
process that occurs over a number of months, if not the entire fiscal
year. Once those decisions are made, sizable capital improvements will
require planning, contracting, and potentially raising outside capital.
All of those take time. Then the actual building of the new facilities
must take place. Only then will the employees of that new facility
start working and the productivity improvements be realized.
The economics literature argues that tax incentives like bonus
depreciation are worthwhile because they are only realized by companies
if they do new activities. Tax incentives are part of the menu of
Federal actions that facilitate economic growth. Smart and efficient
regulation, reliable infrastructure, an educated workforce, and
improved access to capital are others. If confirmed, I look forward to
working with policymakers to analyze how all of these can be deployed
to improve economic growth and wages.
Question. Several of the provisions in the tax cuts and reform bill
are scheduled to expire or phase out, including the 100-percent bonus
depreciation provision. Do you think that such expirations and phase-
outs lead to uncertainty in the markets and dampens the intended
incentive effects? Would you recommend that to provide the strongest
incentive effect and long-term economic benefits, these provisions
should be made permanent as soon as possible?
Answer. Many corporate activities, particularly those arising from
large capital expenditures, have operational effects that last decades.
The greater certainty there is regarding what the economic, tax, and
regulatory environment will look like, the greater willingness there is
by investors and companies to fund long-term investments. In my
experience and in my reading of the economic literature, temporary
provisions and phase-outs often alter when investment takes place and
is not as beneficial for raising long-term investment levels. Higher
investment is more likely when lower rates and greater incentives are
permanent.
______
Question Submitted by Hon. Patrick J. Toomey
Question. I disagree with the premise that a trade deficit with
another nation indicates a harmful economic relationship and could be
better managed by government officials who impose tariffs and other
trade restrictions. The notion that trade deficits are harmful or
counterproductive fails to recognize that both exports and imports are
beneficial to the United States, since unrestricted access to imports
provides consumers with a larger selection of affordable goods and
services. Moreover, a trade deficit indicates a capital surplus;
dollars sent abroad to purchase goods and reinvested in the United
States. As such, trade deficits are an inappropriate measure of
economic success between two countries, and trade balances are a
function of long-term saving and investment, not trade policies.
When the United States experiences strong economic growth and low
unemployment, its trade deficit with another country tends to increase,
as American consumers have more disposable income to purchase goods and
services. By restricting trade in order to reduce our trade deficit,
American consumers, employers, and businesses lose out and the economy
cannot achieve its full potential.
Should policymakers measure the success of a trading relationship
solely based on whether a country runs a trade surplus or deficit? Do
you believe that a country is ``stealing'' or engaged in illicit
activities if it maintains a trade surplus with another country?
Answer. Over extended periods of time, economic theory would argue
that the aggregate trade of a country must come into balance. Extended
periods of deficits or surpluses cannot go forever and will either be
reversed by changes in trade behavior or significant changes in
currency valuations. Note that this result is at the country level
regarding its total external trade; it is not a statement about a
particular bilateral trading arrangement. A range of factors--economic
and otherwise--can contribute to policymakers considering a bilateral
trading relationship as successful. If confirmed, I would be happy to
work with you on this issue.
______
Question Submitted by Hon. John Thune
Question. It has been 10 years since the Federal Government entered
into a conservatorship with Fannie Mae and Freddie Mac. These
government-sponsored enterprises are vitally important to the secondary
mortgage market and to mortgage lenders across the Nation, including to
community banks. While Congress must make reforms to the
conservatorship of Fannie Mae and Freddie Mac legislatively, what
additional reforms, if any, do you believe are appropriate for the
Federal Housing Finance Agency (FHFA) and the Department of the
Treasury to continue pursuing at the administrative level?
Additionally, what are your views on the proposed rulemaking that FHFA
recently initiated to revise certain capital requirements for Fannie
Mae and Freddie Mac?
Answer. It is my understanding that the objective of policymakers
is for Fannie Mae and Freddie Mac to continue their mission of
generating liquidity in the consumer mortgage market and borrower
access to 30-year mortgages without requiring Federal funding or
impairment of financial markets. To do that, we must ensure that the
mortgages they securitize meet minimum quality requirements, that
originators are held accountable for the veracity of the information
generated on the loans, that their loan portfolios not needlessly take
on excess risk, that the FHFA have the necessary authority and
wherewithal to ensure compliance, and that the two GSEs maintain
sufficient capital buffers. Financial economists such as myself can
support policymakers by modeling the likely impact of specific policy
proposals on such a goal. I defer to others on which of these things
can be done under existing authority and which require new legislation.
As a financial economist, I support strong required levels of
capital. Sufficient skin in the game curbs unnecessarily risky activity
arising because of implicit or explicit guarantees (moral hazard) and
ensures that private investors take most, if not all, of the losses
that arise from poor investments. Risk taking is necessary to a
thriving private economy. However, if the benefits of that risk-taking
behavior are going to flow to private investors than so too must the
losses be borne by the private investors.
If confirmed, I would be happy to work with you on this issue.
______
Questions Submitted by Hon. Ron Wyden
Question. Administration's economic claims about the Republican tax
cuts. Mr. Faulkender, at your nominations hearing, I asked you whether
you agreed with the administration's frequently repeated claims about
the economic effects of the Republican tax cuts. You responded by
saying you had only skimmed the Joint Committee on Taxation's dynamic
estimates of H.R. 1's effect on economic growth, so you were unable to
offer an opinion. In the policy meeting with Finance Committee staff,
you similarly responded to a question on the administration's claims
about the tax cuts effects on wage growth that you had not read
materials by Council of Economic Advisers Chairman Kevin Hassett, and
so could not weigh in. In that policy meeting, you were also advised
that questions on the administration's economic claims regarding the
tax cuts would likely come from me and others at the hearing.
This nominations hearing is essentially a job interview for the
position of Treasury Assistant Secretary for Economic Policy. My guess
is that if a private-sector employer asked you to familiarize yourself
with key materials ahead of your interview, you would ensure that you
mastered the content so as to be properly prepared. I am asking you to
do the same thing now in responding to this question for the record. To
be precise, this is the third time you are being asked to weigh in on
the administration's key claims about the tax bill's economic impacts.
Treasury Secretary Steven Mnuchin, who will be your boss if you are
confirmed, said last fall that, ``Not only will this tax plan pay for
itself, but it will pay down debt.''\1\ The official Joint Committee on
Taxation report has said that, even taking dynamic scoring into effect,
the tax cuts will cost over $1 trillion before debt service.\2\
Virtually all mainstream economists have dismissed the notion that
these tax cuts will pay for themselves, let alone also pay down the
debt.
---------------------------------------------------------------------------
\1\ Kate Davidson, The Wall Street Journal, ``Treasury Secretary
Steven Mnuchin: GOP Tax Plan Would More Than Offset its Cost,''
September 28, 2017.
\2\ Joint Committee on Taxation, ``Macroeconomic Analysis of the
Conference Agreement for H.R. 1, the `Tax Cuts and Jobs Act','' JCX-69-
17, December 22, 2017.
Do you agree with Secretary Mnuchin's statement that the tax plan
will pay for itself and even pay down the debt? Please provide a
---------------------------------------------------------------------------
substantive explanation why or why not.
Answer. On the corporate side, the reduction in the corporate tax
rate will make it more attractive for multinationals to locate economic
activity in the United States for many years to come. In addition,
there is reason to believe that provisions in the bill will reduce the
effectiveness of some of the transfer pricing activities of
multinationals that shielded income from U.S. taxation and previously
resulted in those activities being recognized in an offshore tax
jurisdiction. These supply-side actions plus provisions like bonus
depreciation indicate that economic activity in the United States will
be higher than it otherwise would have been. These are structural
changes that make the U.S. economy more competitive in the long run to
ensure that technological innovations are more likely to occur here,
and the benefits realized here, rather than abroad. Also, limits to
interest deductions and other deduction eliminations will increase the
tax base. The possibility does exist that these tax changes coupled
with reductions in burdensome regulation may increase the corporate tax
base enough to offset the reduction in the tax rate applied to
corporate income.
On the individual side, much of the differing views among
economists on the overall revenue implications of the tax bill arise
from different forecasts of how the Federal Reserve will respond to the
current economic climate, where the U.S. economy is near full
employment, consumers do not appear to be confronting difficulties
borrowing, and consumer confidence is high. Given the position for
which I have been nominated and the independence of the Federal
Reserve, I do not want to speculate about potential future actions by
the Fed.
If confirmed, I look forward to leading the Office of Economic
Policy in monitoring changes in economic behavior and estimating the
overall impact on Federal revenue, employment, the use of social
services, wages, and ultimately the Federal deficit. I would be happy
to discuss these issues with you further.
Question. Second, President Trump, his Council of Economic Advisers
Chairman Kevin Hassett, and others in the administration have said
repeatedly that the Republican tax cuts will raise average wages by
$4,000. Yet, to date, real wages have remained pancake flat.\3\
---------------------------------------------------------------------------
\3\ For example, see the Bureau of Labor Statistics, Real Earnings
for July 2018 (released August 10, 2018).
Do you agree with the President and the CEA Chairman that American
workers will see a $4,000 wage increase due to the tax cuts? Please
---------------------------------------------------------------------------
provide a substantive explanation why or why not.
Answer. I have not spoken to Chairman Hassett about this matter or
personally modeled and estimated the impacts of tax reform on average
wages in the coming years. A benefit of tax reform is that
multinationals are more likely to locate operations here in the United
States rather than abroad. Absent tax reform, this offshoring of
earnings would likely have continued, and the incentive to keep foreign
profits abroad would have only continued to rise. Thus, I think we will
see a higher pass-through to workers because of tax reform than we were
seeing recently. There is also literature to suggest that much of the
increased compensation employees are realizing is not going to wages
but is instead paying for the costs of benefits.
As noted above, if confirmed, I look forward to leading the Office
of Economic Policy in monitoring changes in economic behavior and
estimating the overall impact on Federal revenue, employment, the use
of social services, wages, and ultimately the Federal deficit. I would
be happy to discuss these issues with you further.
______
Questions Submitted by Hon. Sheldon Whitehouse
Question. Do you agree that carbon emissions produced by burning
fossil fuels are the primary driver of climate change?
Answer. As a financial economist, my training is in the area of why
and how firms raise capital, allocate capital, manage risk, and respond
to various economic incentives. I have not done research, nor have I
received training, in the area of climate science or energy generation.
I will have to defer to researchers in those fields to provide expert
analysis regarding the primary drivers of climate change and the
environmental impacts of fossil fuels.
Question. Do you agree that carbon emissions are a negative
externality of producing and consuming fossil fuels?
Answer. As my career has focused on financial economics, I have not
conducted in-depth research into the positive or negative economic
impacts of the production and consumption of fossil fuels. I defer to
my colleagues who have given these issues the attention they deserve.
Question. Do you agree that implementing policies to ensure that
the price of a good reflects its true cost is a broadly accepted
principle among economists?
Answer. Yes, there is an appropriate role for policymakers to use
regulation and taxation to address externalities such that the
generator of those externalities incurs the costs of them. As an
economist, I can help policymakers understand the likely economic
impact of such policy choices.
Question. A 2015 survey of professional economists by the New York
University School of Law revealed that 81 percent of the economists
surveyed agreed that pricing carbon is the most efficient way to reduce
carbon emissions. Do you agree with this consensus?
Answer. Although I have not conducted in-depth analysis of specific
proposals to price carbon, pricing or taxing a product is generally an
effective way to incentivize using less of that product.
Question. Recently, organizations as diverse as Freddie Mac, the
Union of Concerned Scientists, and the insurance industry trade
publication Risk and Insurance have been warning of the risk of a
collapse in coastal real estate values. For example, Freddie Mac
writes, ``While technical solutions may stave off some of the worst
effects of climate change, rising sea levels and spreading flood plains
nonetheless appear likely to destroy billions of dollars in property
and to displace millions of people. The economic losses and social
disruptions may happen gradually, but they are likely to be greater in
total than those experienced in the housing crisis and the Great
Recession.'' Given these warnings, do you think that the administration
should be pursuing policies to limit carbon emissions?
Answer. I have not conducted in-depth analysis of the economic
impact of climate change. However, in serving as an associate dean at a
major university, I have experience leading economists and other
faculty and staff working across a range of fields. If confirmed, I
look forward to better understanding how the work of the Office of
Economic Policy and other relevant agencies can support policymakers in
these areas.
Question. Many academic economists are also warning of the risk of
a ``carbon bubble.'' The Bank of England is concerned, warning that
``investments in fossil fuels and related technologies . . . may take a
huge hit.'' Some economic modeling also suggests that should the carbon
bubble burst, the U.S. economy would take a particularly big hit, as
our oil and gas industry is composed of high-cost producers. These
models suggest that the U.S. might see a greater than 5 percent decline
in GDP and millions of lost jobs. Given these warnings, do you think
that the administration should be pursuing policies to limit carbon
emissions?
Answer. The economic impact of a shift to an alternative energy
source would depend upon who creates that alternative source. If it is
U.S. companies that create and expand that alternative, the decline in
impacted industries would be offset by the gains in the U.S. companies
providing the substitute form of energy. As long as American companies
are the ones fulfilling U.S. energy needs, the impact from shifting
from one source to another on the U.S. economy as a whole should be
negligible. This will indeed most likely happen if the U.S. continues
to lead other nations in the areas of research and innovation. However,
there may be other implications outside of the macro-economic impact
that policymakers may wish to consider.
Question. Nobel Prize-winning economist Joseph Stiglitz recently
supplied testimony in a case in which several children are suing the
U.S. government for its failure to reduce carbon emissions. Stiglitz
warns of the economic risks of climate change, but also states that
``[R]etrofitting the global economy for climate change would help to
restore aggregate demand and growth. [C]limate policies, if well
designed and implemented, are consistent with growth, development, and
poverty reduction. The transition to a low-carbon economy is
potentially a powerful, attractive, and sustainable growth story,
marked by higher resilience, more innovation, more livable cities,
robust agriculture, and stronger ecosystems.'' Given Stiglitz's
testimony, do you think that the administration should be pursuing
policies to limit carbon emissions?
Answer. While I am familiar with some of Stiglitz's economic
publications, I am not familiar with this testimony. I am also not
familiar with the low-cost form of energy that Professor Stiglitz
recommends that we transition to. As Stiglitz appears to imply in the
excerpt above, the specifics of such policies would have bearing on
their economic impact.
Question. A Government Accountability Office (GAO) report found
that the economic costs of climate change in the U.S. in 2017 exceeded
$300 billion. This report also estimated that taxpayers would be on the
hook for more than $1 trillion in climate change-related costs through
2039. Given GAO's conclusions, do you think that the administration
should be pursuing policies to limit carbon emissions?
Answer. As noted above, I have not conducted in-depth analysis of
the economic impact of climate change but have experience leading
economists and other faculty and staff working across a range of
fields. If confirmed, I look forward to better understanding how the
work of the Office of Economic Policy and other relevant agencies can
support policymakers in these areas.
______
Prepared Statement of Hon. Orrin G. Hatch,
a U.S. Senator From Utah
WASHINGTON--Senate Finance Committee Chairman Orrin Hatch (R-Utah)
today delivered the following opening statement at a hearing to
consider Michael Faulkender to be Treasury Assistant Secretary for
Economic Policy and Elizabeth Darling to be Health and Human Services
(HHS) Commissioner on Children, Youth, and Families.
This morning we are meeting to discuss the nominations of Michael
Faulkender, to be Treasury Assistant Secretary for Economic Policy, and
Elizabeth Darling, to be Commissioner on Children, Youth, and Families
at the Department of Health and Human Services.
If confirmed, Dr. Faulkender will support the Secretary of the
Treasury directly as one of the foremost economic officials in our
government. That role is an important one. And with the important
changes from tax reform just starting to take effect, Dr. Faulkender's
economic analysis will be key. The Office of Economic Policy in the
Department of Treasury analyzes and reports on both current and
prospective economic developments in the United States and world
economies.
In his role, Dr. Faulkender would lead that office, as well as
assist in determining appropriate economic policies and participate in
creating the administration's budget. This is a brief overview of a
rather complex job, one with serious and critical duties. But I believe
Dr. Faulkender is up to the task.
As you will hear in a few minutes when we introduce both of our
witnesses, Dr. Faulkender has had a distinguished career in academia,
where he has risen to the level of an associate dean at the University
of Maryland's Robert H. Smith School of Business and won many teaching
awards as well.
But as mentioned, we are also here today to consider Ms. Darling.
Ms. Darling has a broad range of experience at the Federal, State, and
local levels, especially in areas fostering collaboration between
government and community-based organizations. If confirmed, Ms. Darling
will oversee two important child welfare agencies within HHS.
First is the Children's Bureau, which manages the multibillion-
dollar child welfare entitlement programs, including foster care, a
program that recently received a significant bipartisan overhaul from
Congress. Ms. Darling will also lead the Family and Youth Services
Bureau, the office serving runaway or homeless youth and supporting
victims of domestic violence.
These are important programs that directly affect the lives of
millions of Americans each year. And the work ahead will not be easy.
However, I am confident that Ms. Darling's prior experience at HHS
under the Bush administration, and her work in Maryland and Texas, make
her a qualified candidate for this important position.
Together, the nominations of both Dr. Faulkender and Ms. Darling
represent an example of two well-qualified candidates being nominated
to key positions within the executive branch, and confirming these two
nominees will help us ensure our government can fulfill the promises we
have made to the American people.
______
Prepared Statement of Hon. Ron Wyden,
a U.S. Senator From Oregon
The gods have a way of dropping Earth-shaking news right before
Finance Committee hearings. This morning's hearing is no different, and
the news that broke last night about the prosecutions of two Trump
associates now has ramifications for one of the nominations before the
committee today.
The President's personal lawyer and his former campaign chairman
are confessed or convicted felons. They join a long and growing list of
Trump associates who've broken the law. Mr. Manafort, relevant to this
committee, stole from every American taxpayer when he committed tax
fraud. Mr. Cohen's crimes are also relevant to our investigative work
in multiple areas. But the Trump Treasury Department is continuing to
stonewall this committee's attempts to investigate these matters of
criminal tax evasion, corruption, and foreign influence in our
elections. That is why I am maintaining holds on all Treasury
nominations.
Yesterday's news makes one issue clear: by refusing to answer our
questions, the Trump Treasury Department is helping to cover up
criminal activity. This stonewalling has gone on far too long. When the
Treasury decides to play ball and provide satisfactory answers to the
questions Democratic members of this committee are asking--not just
Republicans--then it will no longer be necessary to hold nominees.
Onto the two nominations before the committee this morning. If
confirmed, Dr. Michael Faulkender will head up the Office of Economic
Policy at the Treasury Department. He'll be in charge of some of the
most important economic analysis that comes out of the executive
branch.
It's a significant job, in no small part because the Trump
administration--particularly when it comes to tax--has proven to be a
purveyor of economic fiction. And you don't have to take my word for
it. You can ask any typical American worker if they've gotten the
$4,000 raise they were promised they'd get as a result of the Trump tax
law. You can also ask any respected, mainstream economist whether tax
handouts to the wealthy and corporations pay for themselves.
A lot of these rainbow and unicorn tax fantasies came straight from
the White House. But during the debate on the tax bill, Secretary
Mnuchin also fabricated a story about Treasury, and the Office of
Economic Policy in particular, putting out a comprehensive analysis
that would prove these fantasy claims to be true. But what Treasury did
release wasn't a full report--it was a single page, and it failed to
meet the middle-school math-class standard of ``showing your work.''
So first of all, I hope that if Dr. Falkender is confirmed, he'll
get the office back in the game on these big legislative issues. And
second, I hope he will give the Congress and the public reason to
believe Treasury's economic analysis is trustworthy.
That won't be an easy job, because this administration often seems
to be allergic to facts. But given how vital a role this office plays
at the Treasury--and not just on tax policy, but on international
trade, financial markets, and much more--this is an important post.
Second, Ms. Elizabeth Darling is nominated to serve as Commissioner
of the Administration on Children, Youth, and Families. Over the last
few years, the Finance Committee worked extensively on a bipartisan
basis to pass the largest overhaul of our child welfare system in
decades. If confirmed, Ms. Darling will have a big role to play in
implementing that legislation, so both sides of this committee will
look forward to working with her on that front.
But in the meantime, I'm concerned that the Trump administration is
turning its attention toward proposals that would undo much of the
progress that's been made with respect to child welfare. First, there
is an effort by this administration to slash child welfare funding in
the long run. It's the same type of hit job the President's budget-
crunchers want to inflict on Medicaid--capping funding and crippling
the ability of States to serve many of the most vulnerable youngsters
and families out there.
There's also an attempt underway to allow child welfare providers
to discriminate against potential foster parents simply because they
are LGBTQ Americans or people of particular faith backgrounds. The
acting head of the Administration for Children and Families says he
wants to move further in that direction.
Colleagues, this is wrong. Not only is it a discriminatory policy
based on nothing but intolerance, it would almost certainly deny a lot
of children the opportunity to grow up in safe and loving homes.
I'll have questions for Ms. Darling on these issues, and I hope she
will stand up against these policies if she's confirmed.
[all]