    [House Hearing, 117 Congress]
    [From the U.S. Government Publishing Office]

                       STRENGTHENING THE SAFETY NET FOR
                                INJURED WORKERS

    =======================================================================

                                    HEARING

                                   BEFORE THE

                                SUBCOMMITTEE ON
                             WORKFORCE PROTECTIONS

                                    OF THE

                        COMMITTEE ON EDUCATION AND LABOR
                         U.S. HOUSE OF REPRESENTATIVES

                        ONE HUNDRED SEVENTEENTH CONGRESS

                                 FIRST SESSION

                                   __________

                HEARING HELD IN WASHINGTON, DC, DECEMBER 2, 2021

                                   __________

                               Serial No. 117-37

                                   __________

          Printed for the use of the Committee on Education and Labor

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

              Available via: edlabor.house.gov or www.govinfo.gov

                                   __________

                        U.S. GOVERNMENT PUBLISHING OFFICE
    46-181 PDF                 WASHINGTON : 2022

    -----------------------------------------------------------------------------------

                        COMMITTEE ON EDUCATION AND LABOR

                 ROBERT C. ``BOBBY'' SCOTT, Virginia, Chairman

    RAUL M. GRIJALVA, Arizona            VIRGINIA FOXX, North Carolina,
    JOE COURTNEY, Connecticut              Ranking Member
    GREGORIO KILILI CAMACHO SABLAN,      JOE WILSON, South Carolina
      Northern Mariana Islands           GLENN THOMPSON, Pennsylvania
    FREDERICA S. WILSON, Florida         TIM WALBERG, Michigan
    SUZANNE BONAMICI, Oregon             GLENN GROTHMAN, Wisconsin
    MARK TAKANO, California              ELISE M. STEFANIK, New York
    ALMA S. ADAMS, North Carolina        RICK W. ALLEN, Georgia
    MARK DeSAULNIER, California          JIM BANKS, Indiana
    DONALD NORCROSS, New Jersey          JAMES COMER, Kentucky
    PRAMILA JAYAPAL, Washington          RUSS FULCHER, Idaho
    JOSEPH D. MORELLE, New York          FRED KELLER, Pennsylvania
    SUSAN WILD, Pennsylvania             GREGORY F. MURPHY, North Carolina
    LUCY McBATH, Georgia                 MARIANNETTE MILLER-MEEKS, Iowa
    JAHANA HAYES, Connecticut            BURGESS OWENS, Utah
    ANDY LEVIN, Michigan                 BOB GOOD, Virginia
    ILHAN OMAR, Minnesota                LISA C. McCLAIN, Michigan
    HALEY M. STEVENS, Michigan           DIANA HARSHBARGER, Tennessee
    TERESA LEGER FERNANDEZ, New Mexico   MARY E. MILLER, Illinois
    MONDAIRE JONES, New York             VICTORIA SPARTZ, Indiana
    KATHY E. MANNING, North Carolina     SCOTT FITZGERALD, Wisconsin
    FRANK J. MRVAN, Indiana              MADISON CAWTHORN, North Carolina
    JAMAAL BOWMAN, New York, Vice-Chair  MICHELLE STEEL, California
    MARK POCAN, Wisconsin                JULIA LETLOW, Louisiana
    JOAQUIN CASTRO, Texas                Vacancy
    MIKIE SHERRILL, New Jersey
    JOHN A. YARMUTH, Kentucky
    ADRIANO ESPAILLAT, New York
    KWEISI MFUME, Maryland

                       Veronique Pluviose, Staff Director
                      Cyrus Artz, Minority Staff Director
                                     ------

                     SUBCOMMITTEE ON WORKFORCE PROTECTIONS

                   ALMA S. ADAMS, North Carolina, Chairwoman

    MARK TAKANO, California              FRED KELLER, Pennsylvania,
    DONALD NORCROSS,New Jersey             Ranking Member
    PRAMILA JAYAPAL, Washington          ELISE M. STEFANIK, New York
    ILHAN OMAR, Minnesota                MARIANNETTE MILLER-MEEKS, Iowa
    HALEY M. STEVENS, Michigan           BURGESS OWENS, Utah
    MONDAIRE JONES, New York             BOB GOOD, Virginia
    JOHN A. YARMUTH, Kentucky            MADISON CAWTHORN, North Carolina
    ROBERT C. ``BOBBY'' SCOTT, Virginia  MICHELLE STEEL, California
                                         VIRGINIA FOXX, North Carolina (ex
                                             officio)

                               C O N T E N T S

                                  ----------
                                                                       Page

    Hearing held on December 2, 2021.................................     1

    Statement of Members:
        Adams, Hon. Alma S., Chairwoman, Subcommittee on Workforce
          Protections................................................     1
            Prepared statement of....................................     4
        Keller, Hon. Fred, Ranking Member, Subcommittee on Workforce
          Protections................................................     9
            Prepared statement of....................................    10

    Statement of Witnesses:
        Carbajal, Hon. Salud O., a Representative in Congress from
          the State of California....................................     6
            Prepared statement of....................................     8
        Costa, Thomas M., Director, Education, Workforce, and Income
          Security, Government Accountability Office.................    23
            Prepared statement of....................................    26
        Godfrey, Christopher J., Director, Office of Workers'
          Compensation Programs, U.S. Department of Labor............    12
            Prepared statement of....................................    15

    Additional Submissions:
        Takano, Hon. Mark, a Representative in Congress from the
          State of California:
            Warrior Met Coal, Form 10-K, Annual Report for the fiscal
              year ended December 31, 2017...........................    65
            Warrior Met Coal, Form 10-K, Annual Report for the fiscal
              year ended December 31, 2018...........................    73
            Warrior Met Coal, Form 10-K, Annual Report for the fiscal
              year ended December 31, 2019...........................    85
            Warrior Met Coal, Form 10-K, Annual Report for the fiscal
              year ended December 31, 2020...........................   100
        Carbajal, Hon. Salud O., a Representative in Congress from
          the State of California:
            Letter dated December 1, 2021 from the International
              Association of Fire Fighters...........................    64
        Mr. Keller:
            Letter dated October 19, 2021............................   110
        Questions submitted for the record by:
            Chairwoman Adams.........................................   115
            Chairman Scott...........................................   115
            Omar, Hon. Ilhan, a Representative in Congress from the
              State of
              Minnesota..............................................   115
            Ranking Member Foxx......................................   116
            Ranking Member Keller....................................   117
        Responses to questions submitted for the record by:
            Mr. Godfrey..............................................   120

                STRENGTHENING THE SAFETY NET FOR INJURED WORKERS

                                  ----------

                           Thursday, December 2, 2021

                      House of Representatives,
                 Subcommittee on Workforce Protections,
                              Committee on Education and Labor,
                                                        Washington, DC.
        The Subcommittee met, pursuant to notice, at 2:13 p.m., via
    Zoom, Hon. Alma Adams (Chairwoman of the Subcommittee)
    presiding.
        Present: Representatives Adams, Takano, Jayapal, Omar,
    Stevens, Scott, Keller, Stefanik, Miller-Meeks, Owens, Good,
    Cawthorn, Steel, and Foxx (ex officio).
        Also present: Representatives Courtney and Mrvan.
        Staff present: Ilana Brunner, General Counsel; Rasheedah
    Hasan, Chief Clerk; Sheila Havenner, Director of Information
    Technology; Eli Hovland, Policy Associate; Ariel Jona, Policy
    Associate; Kayla Pennebecker, Staff Assistant; Veronique
    Pluviose, Staff Director; Cyrus Artz, Minority Staff Director;
    Michael Davis, Minority Operations Assistant; Rob Green,
    Minority Director of Workforce Policy; Taylor Hittle, Minority
    Professional Staff Member; Georgie Littlefair, Minority
    Legislative Assistant; John Martin, Minority Deputy Director of
    Workforce Policy/Counsel; and Hannah Matesic, Minority Director
    of Member Services and Coalitions.
        Chairwoman Adams. The Subcommittee on Workforce Protections
    will come to order.
        Welcome, everyone. I do note that a quorum is present.
        I note for the Subcommittee that Mr. Courtney of
    Connecticut and Mr. Mrvan of Indiana are permitted to
    participate in the hearing today with the understanding that
    their questions will come only after all Members of the
    Subcommittee on both sides of the aisle who are present have
    had an opportunity to question the witnesses.
        The Subcommittee is meeting today to hear testimony on
    strengthening the safety net for injured workers.
        This is an entirely remote hearing, and as such, the
    Committee's hearing room is officially closed.
        All microphones will be kept muted as a general rule to
    avoid unnecessary background noise. Members and witnesses will
    be responsible for unmuting themselves when they are recognized
    to speak or when they wish to seek recognition.
        If a Member or a witness experiences technical difficulties
    during the hearing, please stay connected on the platform and
    make sure that you are muted and use your phone to immediately
    call the Committee's IT director whose number was provided in
    advance.
        Should the Chair experience technical difficulty or need to
    step away, another majority Member is hereby authorized to
    assume the gavel in the Chair's absence.
        In order to ensure that the Committee's five-minute rule is
    adhered to, staff will be keeping track of time using the
    Committee's digital timer which appears on its own thumbnail
    picture. Members and witnesses are asked to wrap up promptly
    when their time has expired.
        Pursuant to Committee Rule 8(c), opening statements are
    limited to the Chair and the Ranking Member. I recognize myself
    now for the purpose of making an opening statement.
        Good afternoon again. Today's hearing is an opportunity to
    discuss how to strengthen workers' compensation programs which
    play an essential role in assisting workers disabled or fallen
    ill from their job.
        When Americans are hurt on the job, workers' compensation
    programs, whether at the Federal or State level, provide a
    critical safety net. That is, if the system works as it is
    intended.
        And as we will hear from Director Chris Godfrey, the Office
    of Workers' Compensation Programs, or the OWCP, is responsible
    for determining eligibility for Federal workers' compensation
    for four groups of workers: Federal workers, coal miners with
    black lung disease, longshore and harbor workers, and workers
    employed in the nuclear weapons complex.
        OWCP's mission is to ensure that these workers receive the
    benefits they deserve if they are made ill or disabled from a
    covered workplace injury or illness.
        Today, we will evaluate three major challenges facing
    various workers' compensation programs which are having
    significant consequences for workers, families, and taxpayers.
        First, workers made ill from toxic substances face nearly
    insurmountable burdens of proof. For example, firefighters are
    routinely exposed to hazards such as toxic smoke inhalation. As
    a result, they are at an increased risk of being diagnosed with
    lung cancer and other diseases compared to the general
    population.
        Laws in 48 States cover local and State firefighters for
    work-related diseases, but when Federal firefighters apply for
    Federal Employees Compensation Act, or FECA, benefits, they are
    faced with a steep burden of proof. FECA needs to better meet
    the needs of Federal firefighters.
        This pandemic has shown us again and again that too many
    State workers' compensation programs fail to support frontline
    workers who clocked in through the worst of the pandemic and
    contracted COVID-19.
        And while some States made workers' compensation automatic
    for essential workers such as nurses and law enforcement, many
    other groups --such as meatpacking workers--were left in a wide
    swath of States with an impossible battle to prove that they
    contracted COVID at work.
        Thankfully, through the American Rescue Plan Act, Congress
    eased the burden of proof for frontline Federal workers by
    providing automatic eligibility for FECA benefits for those who
    contracted COVID and were in contact with patients or the
    public.
        However, maritime and longshore workers covered under the
    Longshore and Harbor Workers Compensation Act still face a
    steep burden of proof to establish that their COVID-19 cases
    are work-related.
        The second challenge is that States are slashing workers'
    compensation benefits. Instead of maintaining adequate benefit
    levels under State workers' compensation programs, many States
    are cutting benefits as part of a race to the bottom.
        This vicious cycle of cuts in benefits increasingly pushes
    workers with disabilities out of State workers' compensation
    coverage and shifts the cost of workplace injury to Federal
    programs, including Medicare, Medicaid, and Social Security
    Disability Insurance.
        A 2015 Department of Labor report warned that because many
    workers with disabilities do not have access to adequate
    benefits, too many working people are at great risk of falling
    into poverty due to disabling workplace injuries.
        The third challenge is that coal operators have taken
    advantage of weak Federal oversight of a key part of the black
    lung program, which has resulted in a massive shift of their
    financial obligations for black lung benefits to taxpayers.
        As the Government Accountability Office has documented,
    OWCP failed over many years to ensure that coal companies,
    which are permitted to self-insure for black lung compensation,
    are setting aside sufficient collateral to pay black lung
    benefits in the event of bankruptcy.
        As a result, coal operators have shifted an estimated $1
    billion of their black lung liabilities onto taxpayers and
    drove the Black Lung Disability Trust Fund even deeper into the
    red.
        As I previously noted in this Subcommittee's February 2020
    hearing, ``This fleecing of the trust fund and taxpayers has
    occurred under DOL's nose, despite the Department's power to
    prevent it . . . The winners are the coal operators and their
    Wall Street creditors. The losers are the American taxpayers.''
        I look forward to hearing about OWCP's work to address the
    deficiencies in the black lung program that it inherited. I
    also look forward to hearing about new initiatives that OWCP
    under the Biden administration, including plans to strengthen
    its oversight of State workers' compensation programs.
        Finally, this hearing will allow us to begin a conversation
    about legislative solutions and how they can help modernize
    worker compensation programs.
        First, the Federal Firefighters Fairness Act would provide
    that Federal firefighters who are diagnosed with certain long-
    term illnesses would receive a presumption that their illness
    is deemed work-related under FECA. We need to reform FECA so
    that it is better positioned to help some of our Nation's most
    heroic public servants.
        Second, the Longshore and Harbor Workers' COVID-19
    Compensation Act would establish a presumption that maritime
    workers who were diagnosed with COVID-19 received it at their
    place of work and ease eligibility for disability compensation
    and medical benefits. The House has passed this three times in
    the past 2 years, but it has withered and died in the Senate
    each time.
        Third, the Black Lung Benefits Improvement Act would help
    coal miners with disabilities access legal representation,
    improve access to evidence, adjust benefits for inflation, and
    reduce the backlog of claims.
        And finally, the Improving Access to Workers' Compensation
    for Injured Federal Workers Act would expand the number of
    qualified providers who can provide medical services under
    FECA.
        [The statement of Chairwoman Adams follows:]

         Statement of Hon. Alma S. Adams, Chairwoman, Subcommittee on
                             Workforce Protections

        Good afternoon. Today's hearing is an opportunity to discuss how to
    strengthen workers' compensation programs which play an essential role
    in assisting workers disabled or fallen ill from their job. When
    Americans are hurt on the job, workers' compensation programs--whether
    at the Federal or State level--provide a critical safety net. That is,
    if the system works as it is intended.
        As we will hear from Director Chris Godfrey, the Office of Workers'
    Compensation Programs, or the O-W-C-P, is responsible for determining
    eligibility for Federal workers' compensation for four groups of
    workers: Federal workers, coal miners with black lung disease,
    longshore and harbor workers, and workers employed in the nuclear
    weapons complex. OWCP's mission is to ensure that these workers receive
    the benefits they deserve if they are made ill or disabled from a
    covered workplace injury or illness.
        Today, we will evaluate three major challenges facing various
    workers' compensation programs, which are having significant
    consequences for workers, families, and taxpayers.
        First, workers made ill from toxic substances face nearly
    insurmountable burdens of proof.
        For example, firefighters are routinely exposed to hazards such as
    toxic smoke inhalation. As a result, they are at an increased risk of
    being diagnosed with lung cancer and other diseases compared to the
    general population. Laws in 48 states cover local and State
    firefighters for work-related diseases, but when Federal firefighters
    apply for Federal Employees Compensation Act (or FECA) benefits, they
    are faced with a steep burden of proof. FECA needs to better meet the
    needs of Federal firefighters.
        The pandemic has shown us again, and again that too many State
    workers' compensation programs failed to support frontline workers who
    clocked-in throughout the worst of the pandemic and contracted COVID-
    19. While some states made workers' compensation automatic for
    essential workers such as nurses and law enforcement, many other
    groups--such as meatpacking workers--were left in a wide swath of
    states with an impossible battle to prove that they contracted COVID at
    work. Thankfully, through the American Rescue Plan Act, Congress eased
    the burden of proof for frontline Federal workers, by providing
    automatic eligibility for FECA benefits for those who contracted COVID
    and were in contact with patients or the public. However, maritime and
    longshore workers covered under the Longshore and Harbor Workers
    Compensation Act still face a steep burden of proof to establish that
    their COVID-19 cases are work related.
        The second challenge is that states are slashing workers'
    compensation benefits.
        Instead of maintaining adequate benefit levels under State workers'
    compensation programs, many states are cutting benefits as part of a
    race-to-the-bottom. This vicious cycle of cuts in benefits increasingly
    pushes workers with disabilities out of State workers' compensation
    coverage and shifts the cost of workplace injury to Federal programs
    including Medicare, Medicaid, and Social Security Disability Insurance.
    A 2015 Department of Labor report warned that because many workers with
    disabilities do not have access to adequate benefits, too many working
    people are at great risk of falling into poverty due to disabling
    workplace injuries.
        The third challenge is that coal operators have taken advantage of
    weak Federal oversight of a key part of the black lung program, which
    has resulted in a massive shift of their financial obligations for
    black lung benefits to taxpayers.
        As the Government Accountability Office has documented, OWCP failed
    over many years to ensure that coal companies--which are permitted to
    self-insure for black lung compensation--are setting aside sufficient
    collateral to pay black lung benefits in the event of bankruptcy. As a
    result, coal operators have shifted an estimated $1 billion of their
    black lung liabilities onto taxpayers and drove the Black Lung
    Disability Trust Fund even deeper into the red.
        As I previously noted in this Subcommittee's February 2020 hearing:
    ``This fleecing of the Trust Fund and taxpayers has occurred under
    DOL's nose despite the Department's power to prevent it.. The winners
    are the coal operators and their Wall Street creditors. The losers are
    the American taxpayers.''
        I look forward to hearing about OWCP's work to address the
    deficiencies in the black lung program that it inherited.
        I also look forward to hearing about new initiatives that OWCP
    under the Biden administration, including plans to strengthen its
    oversight of State workers' compensation programs.
        Finally, this hearing will allow us to begin a conversation about
    legislative solutions and how they can help modernize worker
    compensation programs:

        1. First, the Federal Fighters Fairness Act would provide that
            Federal firefighters, who are diagnosed with certain long-term
            illnesses, would receive a presumption that their illness is
            deemed work-related under FECA. We need to reform FECA so that
            it is better positioned to help some of our Nation's most
            heroic public servants.

        2. Second, the Longshore and Harbor Workers' COVID-19 Compensation
            Act would establish a presumption that maritime workers who
            were diagnosed with COVID-19 received it at their place of work
            and ease eligibility for disability compensation and medical
            benefits. The House has passed this three times in the past 2
            years, but it has withered and died in the Senate each time.

        3. Third, the Black Lung Benefits Improvement Act would help coal
            miners with disabilities access legal representation, improve
            access to evidence, adjust benefits for inflation, and reduce
            the backlog of claims.

        4. And finally, the Improving Access to Workers' Compensation for
            Injured Federal Workers Act would expand the number of
            qualified providers who can provide medical services under
            FECA.

        Thank you to our witnesses for joining us today.
        I now yield to the distinguished Ranking Member of the
    Subcommittee, Mr. Keller.
                                     ______

        Chairwoman Adams. Thank you to our witnesses for joining us
    today.
        Is the Ranking Member here yet?
        I am sorry? Is the Ranking Member here? Is Mr. Keller here?
        Staff. Chair Adams, I can only confirm that the Ranking
    Member's ID profile is still connected to the platform, but I
    cannot confirm activity from the profile.
        Chairwoman Adams. OK. Well, let me just move on then. Other
    Members, without objection, who wish to insert written
    statements into the record may do so by submitting them to the
    Committee Clerk electronically in Microsoft Word format by 5
    p.m. on December 16, 2021.
        I think I will have to recognize the Ranking Member when he
    gets here so we can move on.
        I am going to introduce the witness now for the first
    panel. Congressman Salud Carbajal has represented the 24th
    congressional District in California since 2017.
        Representative Carbajal is testifying in support of his
    bill, H.R. 2499, the Federal Firefighters Fairness Act of 2021,
    which would improve the ability of Federal firefighters to
    secure workers' compensation benefits under the Federal
    Employees Compensation Act, or FECA, if they develop certain
    illnesses associated with their work.
        We appreciate Congressman Carbajal for participating today.
        Look forward to your testimony, sir. Your written statement
    will appear in full in the hearing record, and you are asked to
    limit your oral presentation to a five minute summary.
        As the first panel is a Member panel, there will be no
    questions of the witnesses, and we will move immediately to the
    second panel at the conclusion of the testimony unless, of
    course, the Ranking Member gets in and we will allow him to
    give his opening statement.
        The witness is aware of his responsibility to provide
    accurate information to this Subcommittee, and therefore we
    will proceed with the testimony.
        Congressman Carbajal, you are recognized for five minutes.

              STATEMENT OF THE HON. SALUD O. CARBAJAL, A
             REPRESENTATIVE IN CONGRESS FROM THE STATE OF
                               CALIFORNIA

        Mr. Carbajal. Thank you, Chairwoman Adams, Ranking Member
    Keller, and Members of the Workforce Protection Subcommittee.
    Thank you for the opportunity today to testify in support of my
    bipartisan legislation, H.R. 2499, the Federal Firefighters
    Fairness Act, that I have introduced with Representatives
    Bacon, Takano, and Fitzpatrick.
        This Congress marks the third time I have introduced this
    legislation since I was elected to represent the Central Coast
    of California in 2016.
        In all these years, this is the first time this critical
    bill has received a hearing, and for that, I want to thank and
    acknowledge the leadership of Chairwoman Adams, who is bringing
    it before Members of the Workforce Protection Subcommittee for
    consideration.
        The Federal Firefighters Fairness Act ensures Federal
    firefighters receive the same access to disability and
    retirement benefits as their peers who are State, county, and
    municipal firefighters, and who often fight the same exact
    fires.
        Like most firefighters in the United States, it would
    create the same presumption that Federal firefighters who
    become disabled by serious diseases, like certain cancers, lung
    disease, heart disease, and infectious diseases, contracted the
    illness on the job.
        Under the current Federal law, Federal firefighters are
    required to precisely identify an incident or exposure that
    caused the disease for it to be considered job-related. The
    burden of proving that one specific incident or exposure to a
    disease is extremely difficult for firefighters to meet because
    they work in so many environments and conditions.
        Fighting fires is hard and dangerous work. In one study
    conducted by Harvard University, scientists measured air
    contaminant levels at more than 200 structural fires. Benzene,
    a chemical linked to many cancers, was found in 181 out of 197
    samples from fire scenes.
        Multiple studies have shown that there are over 100
    chemicals that can be in smoke, showing just how difficult it
    can be for Federal firefighters to prove an illness they
    contracted was caused by one specific chemical or instance.
        Most State, local, and municipal firefighters already
    benefit from something called a ``presumptive illness'' law.
    These laws link a particular occupation with certain diseases
    or conditions that have been connected to their work.
        California was the first State to pass a firefighter
    presumptive illness law in 1982. Today, 49 out of 50 States
    have presumptive illness laws that cover State and local
    firefighters. Sadly, not one of these laws cover Federal
    firefighters.
        This is the gap and inequity that I hope to fix with the
    bipartisan Federal Firefighters Fairness Act, which is
    overwhelmingly supported by my colleagues, with 95 cosponsors,
    and supported by the International Association of Federal
    Firefighters, IAFF, and the American Federation of Government
    Employees, AFGE.
        Madam Chair, I request to enter into the record a letter of
    support for H.R. 2499 from the International Association of
    Firefighters.
        Chairwoman Adams. So ordered.
        Mr. Carbajal. Last month, over a thousand firefighters put
    their lives on the line to battle the Alisal Fire in my
    district on the Central Coast of California. I am so thankful
    for the Federal, State, and local firefighters, who worked
    together to put out the blaze and keep our community safe.
        All of them performed the same job, but again a reminder,
    only Federal firefighters experience a disparity in their
    health benefits.
        It is not fair that Federal firefighters are being denied
    access to benefits that their local counterparts receive,
    especially when they fight the same fires and expose themselves
    to the same risks.
        California experienced unprecedented wildfire seasons in
    2020 and 2021, and scientists are projecting that wildfires
    will continue to increase in frequency and severity.
        Now more than ever, we need to do the right thing by our
    Federal firefighters and pass this vital legislation. Our
    Federal firefighters and their families cannot continue to
    sacrifice and put themselves in harm's way to protect us all,
    only to be denied healthcare benefits simply because they
    cannot prove a work-related illness was linked to one chemical
    or incident.
        Firefighters of all types are heroes and deserve the same
    respect and benefits for the hard and necessary job they
    perform. It is high time to pass a presumptive illness law for
    our Federal firefighters and not continue to treat them as
    second-class firefighters. We must push this measure across the
    finish line.
        Thank you again for the opportunity to speak on my
    legislation, H.R. 2499, the Federal Firefighters Fairness Act.
    I yield back, Madam Chair.
        [The prepared statement of Mr. Carbajal follows:]

                Prepared Statement of the Hon. Salud O. Carbajal
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        Chairwoman Adams. Thank you. Thank you, Congressman
    Carbajal, for your testimony on this important issue.
        This concludes the first panel, and I am going to request
    that the witnesses on the second panel if you would prepare to
    turn your cameras on.
        But before I do that, let me recognize the Ranking Member
    who is with us for his opening statement.
        So, Ranking Member Keller, you are now recognized, sir.
        Mr. Keller. Thank you, Madam Chairwoman.
        The hearing today takes a kitchen sink, spaghetti-on-the-
    wall approach to a wide variety of Federal workers'
    compensation programs, including legislation which purports to
    solve shortcomings in many of them.
        Unfortunately, many of the proposals we will discuss today
    only add additional layers and expense to our already bloated
    and mismanaged Federal programs. For instance, the Black Lung
    Disability Trust Fund has been plagued by financial
    difficulties since it began over 40 years ago. It has been in
    debt since it was created.
        Many of the trust fund's problems stem from the Department
    of Labor's decades-long failure to provide proper oversight or
    enforcement in addition to interest accumulation on its debt.
        As a result, the trust fund's expenditures regularly exceed
    its revenue. Because of this funding shortfall, the trust fund
    borrows from the Department of Treasury's General Fund every
    year.
        In 2021, the trust fund borrowed approximately $2.3 billion
    to cover its costs. As of September 2021, total liabilities for
    the trust fund exceeded its assets by over $6 billion. This is
    both shameful and unsustainable.
        The Trump administration made great strides to correct the
    trust fund's flaws and to revamp the self-insurance process for
    coal mine operators. The Biden administration should restrain
    itself from dismissing President Trump's reforms out of hand
    and put the well-being of the program above politics.
        GAO's testimony today states that Department of Labor
    officials could not describe any anticipated changes to coal
    operators' self-insurance going forward, and Mr. Godfrey's
    testimony confirms that any reforms to the Black Lung program
    will be made public months in the future. This is unacceptable.
        In the meantime, Democrats propose papering over inept
    oversight of Federal workers' compensation programs with big
    government solutions. Democrats continually turn a blind eye to
    the real problems plaguing these programs.
        Instead of working on bipartisan legislation, like this
    Committee has historically done, Democrats are demanding more
    layers of bureaucratic red tape, wasteful spending, and
    increased control over job creators.
        The FECA program is an example of potential bipartisan
    agreement. In the 112th Congress, the Committee took steps on a
    bipartisan basis to reform FECA by introducing legislation that
    would modernize the FECA program, improve its integrity, and
    enhance its efficiency.
        We should revisit commonsense bipartisan reforms instead of
    pushing workers into broken and bloated programs.
        Unfortunately, today many of my Democrat colleagues and the
    Department of Labor are advocating four legislative changes
    that will not improve the critical programs Federal injured
    workers rely upon.
        Creating presumptions of eligibility under the Longshore
    program and FECA will only further strain Department resources,
    increase backlogs, and cause the Department to shift personnel
    and dollars from other critical programs, like programs to
    fight opioid misuse, an issue which has plagued communities in
    central and northeastern Pennsylvania, as well as across all of
    America.
        I would like to urge the Office of Workers' Compensation
    Programs, or OWCP, to focus on reforming the programs they
    currently oversee by addressing recommendations made by the
    Government Accountability Office and the Office of Inspector
    General.
        The Office of Inspector General's annual report outlines
    several significant concerns within OWCP. The Department should
    address these recommendations before moving forward with
    radical proposals to monitor State workers' compensation
    programs or haphazardly broaden benefit eligibility.
        I hope that this Committee can return to bipartisan
    discussions to ensure these programs are efficient, effective,
    and making good use of taxpayers' dollars while protecting the
    people they are designed to protect.
        I would like to thank our witnesses for being here today,
    and I look forward to hearing your testimony.
        I yield back.
        [The statement of Ranking Member Keller follows:]

        Statement of Hon. Fred Keller, Ranking Member, Subcommittee on
                             Workforce Protections

        The hearing today takes a kitchen-sink, spaghetti-on-the-wall
    approach to a wide variety of Federal workers compensation programs,
    including legislation which purports to solve shortcomings in many of
    them. Unfortunately, many of the proposals we will discuss today only
    add additional layers and expense to already bloated and mismanaged
    Federal programs.
        For instance, the Black Lung Disability Trust Fund (BLDTF) has been
    plagued by financial difficulties since it began over 40 years ago. It
    has been in debt since it was created. Many of the Trust Fund's
    problems stem from the Department of Labor's (DOL) decades-long failure
    to provide proper oversight or enforcement in addition to interest
    accumulation on its debt.
        As a result, the Trust Fund's expenditures regularly exceed its
    revenue. Because of this funding shortfall, the Trust Fund borrows from
    the Department of the Treasury's general fund every year. In 2021, the
    Trust Fund borrowed approximately $2.3 billion to cover its costs. As
    of September 2021, total liabilities of the Trust Fund exceeded its
    assets by over $6 billion. This is both shameful and unsustainable.
        The Trump administration made great strides to correct the Trust
    Fund's flaws and to revamp the self-insurance process for coal mine
    operators. The Biden administration should restrain itself from
    dismissing President Trump's reforms out of hand and put the well-being
    of the program above politics. Government Accountability Office's
    testimony today states that `DOL officials could not describe any
    anticipated changes to coal operator self-insurance going forward' and
    Mr. Godfrey's testimony confirms that any reforms to the Black Lung
    Program will be made public months in the future. This is unacceptable.
        In the meantime, Democrats propose papering over inept oversight of
    Federal workers' compensation programs with big government solutions.
    Democrats continuously turn a blind eye to the real problems plaguing
    these programs. Instead of working on bipartisan legislation, like this
    Committee has historically done, Democrats are demanding more layers of
    bureaucratic red tape, wasteful spending, and increased control over
    job creators.
        The Federal Employees' Compensation Act (FECA) program is an
    example of potential bipartisan agreement. In the 112th Congress, the
    Committee took steps, on a bipartisan basis, to reform FECA by
    introducing legislation that would modernize the FECA program, improve
    its integrity, and enhance its efficiency. We should revisit
    commonsense bipartisan reforms instead of pushing workers into broken
    and bloated programs.
        Unfortunately, today many of my Democrat colleagues and the DOL are
    advocating for legislative changes that will not improve the critical
    programs Federal injured workers rely upon. Creating presumptions of
    eligibility under the Longshore program and FECA will only further
    strain Department resources, increase backlogs, and cause the
    Department to shift personnel and dollars from other critical programs,
    like programs to fight opioid misuse, an issue which has plagued
    communities in central and northeastern Pennsylvania, among others.
        I would like to urge the Office of Workers Compensation Programs
    (OWCP) to focus on reforming the programs they currently oversee by
    addressing recommendations made by the Government Accountability Office
    and the
        Office of Inspector General. The Office of Inspector General's
    annual report outlined several significant concerns within OWCP. The
    Department should address these recommendations before moving forward
    with radical proposals to monitor State workers' compensation programs,
    or haphazardly broadening benefit eligibility.
        I hope that this Committee can return to bipartisan discussions to
    ensure these programs are efficient and effective and are making good
    use of the taxpayers' dollars.
                                     ______

        Chairwoman Adams. Thank you. Thank you to the Ranking
    Member. Thank you very much for your statement.
        We are going to move now to the second panel. I want to
    make a request that the witnesses on this panel please turn
    your cameras on at this time, mute your microphones unless you
    are speaking.
        I will now introduce the witnesses for the second panel.
        Our first witness is Christopher Godfrey, Director of the
    U.S. Department of Labor's Office of Workers' Compensation
    Programs.
        Mr. Godfrey is responsible for overseeing the Department's
    work processing tens of thousands of claims from Federal
    employees, nuclear weapons complex workers, coal miners,
    maritime workers, and others, and the payment of billions of
    dollars in benefits.
        He previously served as the Chief Judge and Chairman of the
    Employees' Compensation Appeals Board, and before that, he
    served 8 years as Iowa's Workers' Compensation Commissioner.
        Our second witness is Thomas Costa, who serves as Director
    of Education, Workforce, and Income Security at the U.S.
    Government Accountability Office.
        With degrees from George Washington University and the
    University of Connecticut, Mr. Costa has been with GAO since
    2005, and his work has included labor-related issues as well as
    State Department management and diplomatic security.
        To our witnesses, thank you so much for participating
    today. We look forward to your testimony. Your written
    statement will appear in full in the hearing record, and you
    are asked to limit your oral presentation to a five minute
    summary. After your presentation, we will move to Member
    questions.
        The witnesses are aware of their responsibility to provide
    accurate information to the Subcommittee, and therefore we will
    proceed with your testimony.
        I will first recognize Mr. Godfrey.
        Mr. Godfrey, you are recognized for five minutes, sir.

     STATEMENT OF MR. CHRISTOPHER J. GODFREY, DIRECTOR, OFFICE OF
                  WORKERS' COMPENSATION PROGRAMS, U.S.
                          DEPARTMENT OF LABOR

        Mr. Godfrey. Thank you.
        Chair Adams, Ranking Member Keller, and Members of the
    Workforce Protection Subcommittee, and Mr. Costa and other GAO
    participants, I am grateful for the opportunity to speak with
    you today about strengthening the safety net for injured
    workers.
        Every day the Office of Workers' Compensation Programs
    touches the lives of thousands of workers and families,
    providing a safety net in their times of need.
        The FECA, Longshore, Black Lung, and Energy programs have
    the unifying mission to protect the interest of workers who
    become injured or ill on the job, ensuring fair claim
    adjudication and prompt entitlement payments.
        I am incredibly proud of what OWCP has accomplished during
    the first 10 months of this administration, and I want to share
    with you a few of our noteworthy accomplishments.
        First, following the attack on the U.S. Capitol Building on
    January 6th, the FECA program established a special unit to
    ensure prompt and consistent handling of claims filed by
    Federal law enforcement officers and other first responders who
    suffered traumatic injuries on that date.
        After President Biden signed the American Rescue Plan Act
    into law in March, OWCP implemented its provisions, making it
    easier for Federal workers to file COVID-related workers'
    compensation claims under FECA.
        To date, OWCP has processed over 22,000 COVID claims from
    Federal workers, and less than 1 percent of those claims remain
    unadjudicated.
        Also, with ARPA funding, OWCP hired over 170 new claims
    examiners, strengthening our historically neglected FECA
    workforce.
        OWCP has adapted to the pandemic by transitioning to a 100
    percent telework posture.
        Our Energy program has expanded telehealth options,
    digitized paper case files, and offered online outreach and
    educational events.
        Our black lung program has moved to a fully digital claims
    environment and eliminated millions of pages of paper files.
        OWCP is currently focused on initiatives to strengthen our
    service delivery for injured workers. In the FECA program, a
    pharmacy benefits management service, known as a PBM, will lead
    to lower prescription costs and create additional drug safety
    controls, including increased opioid safeguards which are so
    important.
        We plan during this Fiscal Year to also move forward with a
    PBM in our black lung and energy programs.
        We are also working to combine medical bill processing with
    physician network services to increase the number of physicians
    available to provide treatment to our claimants.
        In line with President Biden's emphasis on diversity,
    equity, inclusion, and accessibility, OWCP has taken several
    steps, such as outreach to underserved communities, like the
    Navajo Nation, and updated our recruitment efforts to obtain a
    more diverse talent pool for job openings.
        Other accomplishments that we have made are noted in my
    written testimony.
        OWCP has also sought to improve the handling of claims for
    Federal firefighters by working with NIOSH to create an
    improved process to address the unique challenges of developing
    those delayed onset occupational illness claims.
        Recently, in collaboration with the Departments of Defense,
    State, and the White House National Security Council, OWCP
    developed guidance on processing claims for anomalous health
    incidents.
        Finally, OWCP has explored the possibility of recommencing
    publication of its annual report on workers' compensation
    systems, and those would be consistent with DOL reports from
    1980 through 2004.
        Turning now to GAO's 2020 report on black lung self-
    insurance programs, I want to address two key recommendations
    concerning OWCP's oversight responsibilities.
        First, they recommended that OWCP should develop and
    implement procedures for self-insurance renewals, and second,
    that OWCP should develop an appeals process for self-insured
    coal mine operators to utilize when they disagree with
    determinations concerning authorization or the amount of
    collateralization required to be self-insured.
        Based on these recommendations, over the past 10 months
    OWCP has performed a comprehensive review of the existing self-
    insurance structure and the impact of the changes made to self-
    insurance process by the previous administration.
        That detailed review is complete, and the self-insurance
    has been included on the DOL regulatory agenda. And we plan to
    move forward with an NPRM in the coming months.
        Seven coal mine operators have appealed self-insurance
    authorization decisions made by OWCP during the previous
    administration. We are currently in the process of reviewing
    those appeals.
        Bottom line is this, OWCP is committed to doing everything
    that we can to protect the trust fund against further
    liabilities from under-secured self-insured operators, through
    a fair, transparent, and efficient process.
        In the past 10 months, OWCP has handled emerging issues
    such as COVID-19 and the Capitol attack and made progress on
    initiatives including the PBM and equity efforts, while still
    charting a path toward resolution of longstanding concerns such
    as self-insurance in the Black Lung Disability Trust Fund.
        I am honored to be able to lead OWCP as we tackle these
    challenges, and thank you again for the opportunity to testify
    today to discuss how OWCP is working to strengthen the safety
    net for injured and ill workers.
        I look forward to your questions. Thank you.
        [The prepared statement of Mr. Godfrey follows:]

                  Prepared Statement of Christopher J. Godfrey
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        Chairwoman Adams. And thank you, Mr. Godfrey.
        We will now hear from Mr. Costa.
        Mr. Costa, you are recognized for five minutes.

              STATEMENT OF MR. THOMAS M. COSTA, DIRECTOR,
              EDUCATION, WORKFORCE, AND INCOME SECURITY,
                    GOVERNMENT ACCOUNTABILITY OFFICE

        Mr. Costa. Thank you, Chairwoman Adams, Ranking Member
    Keller, Chairman Scott, Ranking Member Foxx, and Members of the
    Subcommittee.
        I am pleased to be here today to discuss, one, the serious
    financial challenges facing the Black Lung Disability Trust
    Fund; two, GAO's prior recommendations concerning the
    Department of Labor's limited oversight of coal mine operator
    self-insurance; and three, updated actions DOL has taken to
    improve oversight of self-insurance and implement our
    recommendations.
        My testimony is based primarily on prior GAO reports and
    updated information provided by DOL in November.
        The Black Lung Benefits Program provides assistance to coal
    miners who are disabled due to black lung disease. Over 24,000
    beneficiaries received benefits in Fiscal Year 2021.
        Black lung benefits are generally paid by liable coal mine
    operators. Operators may purchase commercial insurance or self-
    insure to cover benefits.
        The Federal Government's Black Lung Disability Trust Fund
    pays when no responsible mine operator can be identified or the
    liable mine operator doesn't pay, such as through a bankruptcy.
        This brings me to my three discussion points.
        First, the trust fund faces serious financial challenges
    with expenditures consistently exceeding revenue, especially
    its debt and interest payments. Consequently, the trust fund
    has borrowed from the Treasury almost every year since 1979.
        In Fiscal Year 2021, the trust fund had to borrow $2.3
    billion to cover its expenses, and based on our previous
    projections, the trust fund's debt could exceed $15 billion by
    2050.
        The fund's primary source of revenue is a coal tax that has
    changed little since 1986 and is set to decline next year.
        Compounding these challenges, coal production has declined,
    reducing revenue, and additional coal operator bankruptcies
    have further strained the trust fund.
        We previously reported that bankruptcies between 2014 and
    2016 of self-insured operators led to the transfer of $865
    million in benefit responsibility to the trust fund. Since
    then, at least five more self-insured operators have filed for
    bankruptcy.
        Making things worse, there has been a resurgence in the
    number of miners contracting the most severe form of black
    lung, likely leading to increased future liabilities.
        On to my second point. In response to DOL's limited
    oversight of coal mine operator insurance, we recommended that
    DOL develop procedures for self-insurance renewal that clarify
    how long an operator is authorized to self-insure, as well as
    when self-insurance authority would not be renewed, and that
    they develop procedures for self-insured operator appeals.
        And now for my third point. When we testified in February
    2020, we noted DOL had begun implementing a new process for
    self-insurance that if implemented effectively might have
    helped address past deficiencies in our recommendations.
        That didn't happen. Instead, DOL suspended and then
    rescinded its efforts. In February 2020, DOL sent letters to 14
    self-insured operators authorizing most to self-insure for 1
    year if they provided about $251 million in total collateral.
        Seven complied. Five others appealed and did not provide
    the collateral. As a result, DOL didn't secure about $186
    million in collateral from those operators.
        DOL told the remaining two operators, both of whom
    appealed, that they no longer qualified to self-insure and must
    obtain commercial insurance.
        In addition to the 14 operators DOL contacted, there are
    three additional self-insured operators. DOL didn't reassess
    the collateral secured by one, because DOL had done so in 2019.
    The other two, however, didn't provide actuarial estimates that
    DOL could use to assess the proper amount of collateral.
        DOL said their ability to resolve appeals was hindered by
    the COVID-19 pandemic, as they and coal operators adjusted to
    different working conditions and experienced challenges in
    processing documentation. As a result, DOL suspended its review
    of operator appeals.
        In December 2020, after a 5-year effort, DOL issued a
    preliminary bulletin with updated guidelines for coal operator
    self-insurance. However, in February, DOL rescinded that
    bulletin pending review.
        As of November, DOL had not taken action on the pending
    appeals or reauthorized operators to continue self-insuring
    after their approvals to do so had expired.
        However, as Director Godfrey just noted, DOL noted they
    recently completed their review of the guidelines and expect to
    go through a rulemaking process in the coming months. It is
    unclear how long this process might take.
        In summary, the future financial situation facing the trust
    fund has worsened over the last 2 years, during which DOL did
    little to forestall this decline.
        While DOL collected some additional collateral from several
    self-insured operators, half the operators haven't secured the
    support they will owe their disabled miners.
        Given the dire situation facing the trust fund, we
    reiterate the need for DOL to take action and address our
    previous recommendations.
        This completes my prepared statement. I look forward to
    your questions.
        [The prepared statement of Mr. Costa follows:]

                     Prepared Statement of Thomas M. Costa
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        Chairwoman Adams. Thank you, sir. Thank you very much.
    Thank you to both of our witnesses.
        Under Rule 9(a), we will now question the witnesses of this
    panel under the five-minute rule. I am going to recognize
    myself as Chair for five minutes.
        Nearly 2 years ago, the GAO testified before the
    Subcommittee that nearly $1 billion in liabilities were
    transferred to the Black Lung Disability Trust Fund by bankrupt
    coal operators that had been allowed by DOL to self-insure with
    only a minuscule amount of collateral. It happened because DOL
    failed to hold these operators accountable.
        Coinciding with the hearing in February 2020, DOL wrote
    more than a dozen operators advising that they must post nearly
    $250 million in collateral in order to continue self-insuring.
        Seven have appealed, but almost 2 years later your agency
    has not ruled on those appeals. These operators still have not
    posted that increased collateral, leaving taxpayers at risk.
        So Mr. Godfrey, how long does the DOL expect the rulemaking
    process regarding self-insurance to take?
        Mr. Godfrey. Thank you for that question.
        Where we are at in terms of dealing with the self-insurance
    review is that we are at a place where we have studied this
    issue, we have worked through the GAO studies, not only from
    2020 but also the 2018 GAO study that dealt with the concerns
    to the levels of debt within the Black Lung Disability Trust
    Fund.
        And what we have done is found that there are ways that we
    can work on the minimum improvements that were made during the
    last administration, which did in some respects address those
    changes that were recommended through the GAO.
        I think that we can do better, I think we can do it more
    efficiently, and we can do it through a regulation. A
    regulation will be one that will allow for public comment. And
    as we go forward, we will still be working on a dual track with
    the prior work of the prior administration.
        Chairwoman Adams. OK. So do you have a timeframe? Do you
    have a schedule? That was really my question. So you didn't
    sound like you had one of those, that you don't have a
    timeframe of the things that you needed to do.
        Let me move on.
        Mr. Godfrey, what is the magnitude of cost shifted into
    Federal safety net programs because of insufficient State
    workers' compensation programs?
        Mr. Godfrey. Sure. And if I could first clarify, the notice
    of proposed rulemaking is on our regulatory agenda, we have
    begun work on that process, and it is simply the time it takes
    to promulgate that rule, receive comments, and then go into
    final rule.
        In terms of the second question that you have asked, it is
    difficult to quantify the amount of costs that have been
    shifted to various programs from reductions after reductions in
    State-level workers' compensation systems. That is difficult
    for us within OWCP to fully understand.
        What we do see is there are areas, like the Black Lung
    program within OWCP, that can be impacted. We also see the VA,
    Medicare, Social Security as also being impacted.
        I think one of the things that we can see is when we look
    at the 19 essential functions from the 1972 commission, if we
    can go back to doing an annual State report, as they did from
    1980 to 2004, I think we can start to actualize what that
    transfer is.
        Chairwoman Adams. OK. Let me get one more question in here.
        So should the Federal Government set minimum standards so
    that the States will stop shifting costs onto the taxpayer?
        Mr. Godfrey. The Department of Labor has not taken a
    position on whether or not there should be minimum standards.
        Chairwoman Adams. OK.
        Mr. Godfrey. I think what we can look at, though, is the 19
    essential recommendations from the 1972 commission.
        Chairwoman Adams. OK. Quickly, Mr. Costa, does this
    approach leave taxpayers at risk in the event of bankruptcy?
        Mr. Costa. Yes, Madam Chair, it does. As long as the
    Department is not securing the collateral that it has requested
    and it is not managing the appeals process, if another self-
    insured coal operator goes bankrupt, there is a good likelihood
    that some of that liability will be transferred to the Black
    Lung Disability Trust Fund.
        Chairwoman Adams. OK. I have only got like 15 seconds.
        So how many companies right now are still self-insuring
    without current authorization by DOL? Do you know?
        Mr. Costa. Sixteen.
        Chairwoman Adams. OK. All right. Great.
        Well, I am going to adhere to what we are asking everybody
    to do, and I am going to yield back my time. And I am going to
    now recognize the Ranking Member for five minutes for his
    questions.
        Mr. Keller. Thank you, Madam Chair.
        Mr. Costa, in February 2020, Julia Hearthway, who was at
    that time the Director of the Office of Workers' Compensation
    Programs, testified before this Committee on the actions that
    OWCP was already taking to address shortcomings in the Black
    Lung Benefits Program identified by the GAO consistent with
    your February 2020 recommendations.
        OWCP subsequently published a bulletin on December 7, 2020,
    outlining new self-insurance process guidelines.
        In your opinion, did the Trump administration take
    meaningful action to implement GAO's recommendations? And were
    these steps consistent with those recommendations?
        Mr. Costa. Thank you, Ranking Member Keller.
        Yes, it appeared as though the bulletin guidelines were
    going to be addressing our recommendations. It remained to be
    seen, if they had been implemented, whether or not they would
    have fully addressed those recommendations. And that is one
    step that needs to occur in order to help ensure the solvency
    of the trust fund.
        Mr. Keller. So you say if they would have been implemented.
    So they weren't implemented by the Trump administration, or was
    that because of actions on the Biden administration when they
    withdrew from the Trump administration's bulletin?
        Mr. Costa. So the guidelines were issued in December, at
    the very end of the Trump administration, and they were
    rescinded by the Biden administration in February of this year.
        Mr. Keller. Was there any rationale from the Biden
    administration why they rescinded those?
        Mr. Costa. I would have to defer to Director Godfrey for
    that, sir.
        Mr. Keller. Director Godfrey, are you aware of the
    rationale behind?
        Mr. Godfrey. Yes, I am. The rationale was, in February
    2020, when Director Hearthway testified before this
    Subcommittee, it was noted that it would be within 90 days that
    the appeals would be handled. That did not occur.
        When the bulletin was issued in either December or January
    2021, that had been over 11 months since it was said that it
    would be 90 days to resolve that matter. It was in that last
    few weeks of the administration that it was finally published
    as a bulletin.
        I felt that as I came in, and because of the changes in the
    executive order relating to the use of bulletins, that it would
    be best to take under consideration what the prior
    administration has done but not be bound by it in an ongoing
    manner, to see if we could find efficiencies and ways to do it
    better.
        Obviously, if it took 11 months to perform those appeals
    under the last administration, we need to find efficiencies and
    ways to do it much, much quicker.
        Mr. Keller. I can understand the finding efficiencies and
    ways to do it much more quickly, but delaying these things that
    were recommended be done is certainly not helping the people
    that are going to benefit from making sure that their system is
    solvent. And I think it is, quite frankly, irresponsible to do
    that without a plan.
        So I guess I would just look at the rest of the things.
    And, Mr. Costa, what actions, if any, has the Biden
    administration taken to implement GAO's recommendations and to
    increase solvency of the Black Lung Trust Fund?
        Mr. Costa. Sir, as I testified, the current administration
    has been studying what the previous administration recommended.
    But as far as I know, there have not been any concrete steps
    taken thus far.
        Director Godfrey just testified that they finished their
    review and are going to be moving forward in the coming months
    with some new measures. But I am not sure how those measures
    will impact the trust fund at this point.
        Mr. Keller. Well, we had recommendations that the Trump
    administration had said would help --your recommendations that
    the Trump administration had implemented and would have made
    the fund more solvent, correct, under your estimation?
        Mr. Costa. Yes, sir. We believe that if recommendations had
    been implemented that it would have helped the trust fund. It
    is only one of the major things that needs to be done to
    address the trust fund's solvency issues, however.
        Mr. Keller. Yes. But understanding that would have been --
    that was done in February, which was almost 10 months ago.
        Mr. Costa. Yes, sir.
        Mr. Keller. Meaning that we lost all that time.
        In your opinion, losing that time where we could have
    worked toward solvency, does that put the trust fund more at
    risk than it would have been?
        Mr. Costa. Yes.
        Mr. Keller. OK.
        Mr. Godfrey, GAO testified today that the changes made by
    the Trump administration to reform the Black Lung program and
    overhaul DOL's oversight of self-insured coal mine operations
    were a positive step toward implementing the GAO's 2020
    recommendations and improving the solvency of Black Lung --we
    just heard about that --and the Disability Trust Fund. Of
    course, I know we have talked about it. We withdrew from those.
        Can you tell us what is going to happen? We have put these
    on hold for whatever reason and are not getting that, and we
    don't really --just because it took that many months doesn't
    mean we shouldn't be getting the benefit from it.
        But what do you think --or what reforms do you think are
    going to happen that are going to make up the difference of
    this? Are you going to do anything differently? Or what did you
    find?
        Mr. Godfrey. Thank you for that question.
        I would note that although there were letters that went out
    in February 2020, for the remainder of the administration there
    was no action taken.
        Chairwoman Adams. The gentleman's time is up.
        Mr. Keller. I would just like to say, we can try and place
    blame wherever we want. The point was, there was action taken,
    and this administration, by not taking advantage of being able
    to make this fund more solvent, can try and make all the
    excuses they want, but they have been in charge now for nearly
    10 months.
        Chairwoman Adams. The gentleman's time is up.
        Mr. Keller. And they need to do something if they want to
    be responsible to fixing this for the people that rely on these
    benefits.
        So I would suggest that this Committee hold oversight that
    we should hold and make sure that we protect the people.
        Chairwoman Adams. Mr. Keller, your time is up, sir. We are
    way over time on this. So we have to move on. Thank you.
        We are going to hear now from the gentleman from Virginia,
    the Chair of the Education and Labor Committee.
        Mr. Scott, you are recognized for five minutes, sir.
        Mr. Scott. Thank you. Thank you, Madam Chair. And I
    apologize for being in a phone booth. We are back and forth
    from votes, and I have a meeting coming up fairly soon.
        Mr. Godfrey, in your written testimony you mention
    challenges with claims for firefighters. Does Mr. Carbajal's
    bill address those challenges?
        Mr. Godfrey. Yes. Thank you for that question.
        That piece of legislation is a positive piece of
    legislation that does address issues related to Federal
    firefighters, especially with those very difficult-to-prove
    long-term occupational disease claims due to exposures.
        Prior to that legislation moving forward, I have already
    taken steps, however, to work directly with NIOSH to make sure
    that we can work to get those types of claims handled in a very
    expeditious and a very fair and consistent manner. We have
    reached out to the firefighter unions. We have done significant
    discussions with NIOSH.
        And I believe that with the special claims handling unit
    that we are going to put in place, that we will have a system
    that will help those individuals that have Federal firefighter
    claims that are based on occupational exposures have a much
    better outcome in terms of those cases, because we are going to
    be assisting with the development of that medical evidence and
    the factual evidence, but also working with NIOSH to make sure
    that we are continuing to identify each and every type of
    illness that would fall within this type of definition.
        Mr. Scott. Thank you.
        And we had the presumption for Federal and postal workers.
    Out of fairness, should longshoremen be entitled to the same
    kind of presumption that we extended to those other workers?
        Mr. Godfrey. I am unaware that the administration has taken
    a position on that. I do know that we did provide technical
    assistance during the Rescue Plan Act on that specific
    provision.
        Mr. Scott. Well, if you could get back to us on extending
    this same presumption to longshore and harbor workers, we would
    appreciate it.
        Are you familiar with the disgraceful fraud that was going
    on in the FECA program with compounded drugs?
        Mr. Godfrey. Yes, sir.
        Mr. Scott. There is massive fraud going on. Have you fixed
    that?
        Mr. Godfrey. It is fixed. At this time, we do not have
    expenditures to any specific amount for compounded drugs, and
    with movement on to the PBM we will have even additional
    safeguards to make sure that compounded drugs are not
    compensated through the system.
        Mr. Scott. Did anybody go to jail behind that?
        Mr. Godfrey. I am unaware of that fact. We can certainly
    get back to you with facts regarding prosecutions.
        Mr. Scott. OK. Thank you.
        Do you support the long-term extension of the black lung
    excise tax of $1.10 per ton underground and 55 cents per ton
    surface coal?
        Mr. Godfrey. DOL does believe that it is critical for that
    to be maintained.
        Mr. Scott. Thank you.
        Are you aware of the cost of the extended presumption under
    the FECA program, what CBO had estimated, CBO scored that
    provision at about $103 million? Do you know what it has cost
    so far?
        Mr. Godfrey. May I ask, are you referring to the COVID-
    related claims under FECA?
        Mr. Scott. Yes.
        Mr. Godfrey. OK. The numbers for the FECA COVID claims at
    the current time are approximately $24.3 million out of the
    22,000 accepted claims.
        Mr. Scott. And CBO estimated 103. Do you think you have
    clearly sufficient funds to pay those--continue paying those
    claims, including so-called long COVID claims that may extend
    many years?
        Mr. Godfrey. At this time, I do believe we have sufficient
    funding. We are working very carefully on the issue of long
    COVID and working within the agency here at DOL to make sure
    that we are identifying long COVID where it exists and how we
    can address it together.
        Mr. Scott. Thank you.
        Madam Chair, thank you very much, and I yield back.
        Chairwoman Adams. Thank you, Chairman Scott.
        I want to recognize now the gentlelady from North Carolina,
    our Ranking Member of the Ed and Labor Committee.
        Ms. Foxx, you are recognized.
        Ms. Foxx. Thank you, Madam Chair.
        I need to register my strong protest on how this hearing
    was begun. It is deeply inappropriate that this hearing started
    during votes while only two Members were present and no Members
    of the minority.
        We had essentially no Members present for testimony all
    because most Members of the Committee were doing their jobs and
    voting on the floor.
        We need to return to in-person Committee proceedings.
        Mr. Godfrey, in your testimony you State that OWCP is
    exploring the possibility of publishing an annual report on
    State workers' compensation programs and increasing oversight
    of State workers' compensation programs.
        The Department of Labor does not have the authority to
    monitor State workers' compensation programs, which were
    established more than a hundred years ago under State
    constitutions and legislation independent from Federal
    programs.
        This unilateral move by OWCP would be a significant
    departure from longstanding policy. Under what authority do you
    plan to do this? What is the purpose of this Federal report?
    And does the Department believe it can better manage State
    programs which are currently managed by an array of regulatory
    agencies at the State level and that OWCP programs are
    currently themselves in need of reform and suffering from
    mismanagement?
        And I need very quick, pertinent, cogent answers.
        Mr. Godfrey. Thank you. And if I miss any of the responses,
    please followup to let me know which ones.
        First of all, as a former State work comp commissioner, I
    understand the independence of State work comp systems. In
    terms of the work that is going to be done, those reports had
    been compiled from 1980 through 2004. We would use the same
    authorization.
        The information within those reports----
        Ms. Foxx. And we would like you to give us that
    authorization in writing after this hearing.
        Mr. Godfrey. I will do that. Thank you.
        In terms of the actual documentation within the reports, it
    would be limited to what was done previously, which is looking
    at the 19 essential recommendations from the bipartisan 1972
    National Commission report, as well as looking at annual
    changes in State law.
        I know that many of those pieces of documentation already
    exist from other areas but simply are under for-pay type of
    reports. So we would like to do that as we have done in the
    past.
        Ms. Foxx. This administration is looking backward again.
        Mr. Godfrey, please describe the primary source of funding
    for the Black Lung Disability Trust Fund, how much of an impact
    coal mine bankruptcies have had on the trust fund solvency
    compared to other challenges, such as interest on longstanding
    debt. And last, the impact of the Obama administration's failed
    energy policies and the Biden administration's similarly flawed
    approach on energy, on coal company bankruptcies, and on OWCP's
    resulting obligations.
        Mr. Godfrey. Sure.
        In terms of the issues relating to the trust fund debt, as
    was noted by Ranking Member Keller, many of those have been
    longstanding from the very beginning of the Disability Trust
    Fund.
        At the current time, the payment on interest into the trust
    fund is significant and is problematic in terms of any ability
    to reduce the trust fund debt.
        I believe in the last fiscal year, $214 million was
    required to be borrowed simply to cover the debt, which added
    to the $6 billion of current debt.
        In terms of the ability to raise revenues that would be
    necessary, obviously the sole mechanism that we have at this
    time is--so that we can make sure that we can protect the
    interest of the miners --is either further borrowing from
    Treasury or the use of the excise tax.
        Ms. Foxx. Mr. Godfrey, the 2021 National Academy of Social
    Insurance report on Workers' Compensation Benefits, Costs, and
    Coverage estimates that for State workers' compensation and
    longshore workers' compensation paid by private insurers, the
    total cost of benefits are made up about 50 percent disability
    benefits and 50 percent medical benefits.
        Currently, the FECA program's cost of $3 billion per year
    is made up of 67 percent disability benefits and 33 percent
    medical benefits.
        Why are disability benefits a much larger percentage of
    benefits under FECA? As Congress continues to examine the FECA
    program, what can we learn from State and private insurance on
    strategies to reintegrate individuals into the workplace?
        Mr. Godfrey. Thanks. That is a great question.
        One of the major differences that I have seen from being in
    the State system in Iowa versus the Federal system here at OWCP
    is the ability to settle claims.
        Because there is no settlement provision within the FECA
    program, claims are on the periodic rolls until we can
    establish that individual can go back to work or does have a
    different type of retained earning capacity. That is a big
    challenge for the FECA program.
        Ms. Foxx. Thank you very much.
        And thank you, Madam Chair, for yielding time.
        Chairwoman Adams. Thank you. Thank you, Representative
    Foxx.
        I want to recognize now Mr. Takano.
        Mr. Takano, you are recognized for five minutes.
        Mr. Takano. Thank you, Madam Chair.
        Mr. Godfrey, your agency's appeal process for self-
    insurance appears to take so long that a company can largely
    escape your requirements.
        For example, DOL asked Warrior Met Coal, which has an
    estimated $85 million in black lung liabilities, to increase
    its collateral from close to $20 million to $39 million. But
    Warrior Met appealed, and now, almost 2 years later, it appears
    the company still doesn't have to comply.
        My first question is, would you agree that a company that
    has posted collateral for less than 25 percent of its
    liabilities presents a risk to taxpayers if it is faced with a
    downturn in the market?
        Mr. Godfrey. Yes. We agree that the trust fund and
    taxpayers need to be protected against the consequences of coal
    mine bankruptcies. That is where we are going to move forward
    with the appeals, which are currently pending, including the
    Warrior Met appeal, as well as the other coal companies that
    were left by the last administration.
        And then we are also going to be proposing our new
    regulation, which I think will make it a much more efficient,
    speedy, and accurate process, to make sure that we are getting
    the correct levels of security.
        Mr. Takano. Well, thank you, Mr. Godfrey. I am very pleased
    to hear that.
        Warrior Met appears to specialize in metallurgical coal
    that is largely mined and exported. If I understand it, that
    coal is not subject to the tax that funds the Black Lung
    Disability Trust Fund. Is that correct?
        Mr. Godfrey. That is correct.
        Mr. Takano. So if this company shifted liabilities onto the
    trust fund, for the most part, it would not have contributed to
    that trust fund?
        Mr. Godfrey. At least not through the excise tax, that is
    correct.
        Mr. Takano. Well, I would like to ask, Madam Chair,
    unanimous consent to enter into the record relevant excerpts of
    the 10K filings for 2017 through 2020 of Warrior Met Coal.
        Chairwoman Adams. So ordered.
        Mr. Takano. Now, based on these documents, Warrior Met Coal
    has paid out a whopping $1.5 billion in dividends and stock
    buybacks since 2017 during a period of only $1.4 billion in
    total book net income and only $312 million in increased
    company value. It appears that the private equity funds
    controlling this company are stripping its assets.
        When will this company actually be required to post the
    collateral your agency believes it should?
        Mr. Godfrey. Sure. We are moving in the process of handling
    those appeals, and I would say that within a 90-day time period
    would be our aspiration. That was the aspiration of the prior
    administration when they testified. I do believe a 90-day
    timeframe is likely for holding them accountable.
        Mr. Takano. Well, I certainly hope so. And I know that the
    Chairwoman and this Committee will be very interested in making
    sure that your assessment is correct.
        What steps should be taken so that Wall Street firms are
    not able to game the system by socializing the costs of black
    lung benefits while privatizing their gains in the events of a
    bankruptcy?
        Mr. Godfrey. Sure. I think the best thing that OWCP can do
    is to move forward with the GAO recommendations and expand upon
    them.
        We are committed to strengthening the safety net for
    workers by making sure that those self-insured coal companies
    can meet their obligations under the Black Lung Benefits Act.
    And our role in that is to make sure that they have adequate
    liabilities. And we are taking the steps necessary by handling
    those current appeals which are pending and then moving forward
    with the regulations so that we can always meet those goals.
        Mr. Takano. Well, I certainly appreciate your testimony,
    Mr. Godfrey. And I hope very much that we will see Wall Street
    firms being prevented from gaming the system. This is really
    atrocious. We are talking about miners suffering from black
    lung, and I am just appalled at the gamesmanship that has been
    allowed to occur.
        I yield back, Madam Chair.
        Chairwoman Adams. Thank you. Thank you, Mr. Takano.
        I am going to recognize now Representative Miller-Meeks.
        You are recognized for five minutes.
        Mrs. Miller-Meeks. Thank you, Chairwoman and Ranking
    Members as well, and thank you to our panelists.
        And, Mr. Godfrey, I thank you as a fellow Iowan. Thank you
    very much. I am not a Bulldog, I am a Hawkeye, but nonetheless
    we thank you for your service.
        And before I begin my questions, I would just like to
    respond to some comments made by one of my colleagues that
    implied that the Office of Workers' Compensation should more
    closely monitor State workers' compensation systems. And I
    associate myself with comments made by Ranking Member Foxx.
        I think it is important to point out that State workers'
    compensation systems are already effectively monitored through
    State oversight, insurance regulation, and research specific to
    each State. Adding another layer of monitoring is not necessary
    and could result in unintended consequences for insurance
    policyholders.
        State systems are highly effective at addressing the
    localized concerns of employees and employers, and we should
    continue to ensure that States, not bureaucrats in Washington,
    can regulate their systems.
        And with that, Mr. Godfrey, this November the United States
    reached a grim milestone by surpassing 100,000 drug overdose
    deaths in a 12-month period for the first time in our history.
    The pandemic has only exacerbated opioid and drug misuse.
    Meanwhile, the Department of Labor leadership recently
    reallocated resources from its opioid management to COVID-19
    claims adjudication.
        Do you believe it was an appropriate time to raid FECA's
    opioid management fund?
        Mr. Godfrey. First of all, answering your first comments, I
    am a Bulldog, but I am a Hawkeye fan. So it is good to talk to
    you.
        But in terms of the transition that was made there during
    the initial timeframe of COVID, I think the reason that that is
    allowable is because the FECA program and the prior
    administration as well had done a great job in terms of
    reducing the dependency on opioids. We had seen the levels of
    FECA claimants that had been taking opioids for greater than a
    year go from 9,000 down to 1,500.
        And as we move on to the PBM, the pharmacy benefits
    manager, we have very strict guidelines that are going to be
    put in place which will make it even more difficult and more
    stringent to control opioids, leaving them to 7-day
    prescriptions, after which the physicians will be required to
    present significant evidence through pharmacy management and
    physicians and the FECA program to get further opioid
    prescriptions.
        So I do think that the program has done a great job.
        Mrs. Miller-Meeks. And I think that one of the costs of the
    pandemic and how we have responded to the pandemic --and I
    addressed this with Dr. Walensky and Dr. Fauci on the
    Subcommittee on the Coronavirus task force --is the number of
    excess deaths.
        And we now know that the number of excess deaths from how
    we handled COVID-19, with lockdowns, isolation, banning social
    gatherings, that that has led to excess deaths, which are now
    in excess of what has happened from COVID-19 if, in fact, all
    deaths were COVID-19 and not somebody hospitalized with COVID-
    19.
        And, in fact, the San Francisco Chronicle had published
    earlier this year, and then, in fact, has followed up with data
    that the deaths from overdose in the 18-to 45-year age group,
    in contrast to those deaths from COVID which are in the elderly
    age group, so these are 18-to 45-year-olds, are twice what they
    were from COVID.
        So I think it is extremely important that we recognize that
    in trying to treat a pandemic, that we are also creating harm
    to other individuals and individuals in a younger age group.
        One of the other concerns I had was that earlier this year
    in Ed and Labor we had a markup on COVID-19 funds with a
    presumption of COVID-19 in the workplace for longshoremen. I
    will readily admit that we do not have any ports in Iowa, and I
    am not exactly sure how longshoremen work. But in my mind,
    longshoremen are not in close contact with other individuals,
    such as they are in one of our other facilities, our
    manufacturing facilities.
        And we recently addressed that individuals that are more
    isolated in their workplace, i.e., truck drivers, don't have
    the same degree of risk to other individuals.
        So can you tell me, what is the average work hour of a
    longshoreman?
        Mr. Godfrey. Congresswoman, I cannot do that.
        What I cannote, though, is I do share your understanding
    that --my first job out of law school was representing IBP. I
    have driven through Ottumwa many, many times. I know the close
    proximity they work. I know the hot, steamy environment in
    which they work. I know that there are many occupations which,
    obviously, have considerable exposures that could occur.
        Mrs. Miller-Meeks. So my concern is----
        Mr. Godfrey. But I don't know the work hours.
        Mrs. Miller-Meeks. I do apologize for interrupting you. I
    am so sorry.
        But my point is that when we make a presumption of COVID-
    19, when contact tracing, as a former director of public health
    and talking to my local public health agencies who have done
    contact tracing, the majority of diseases coming from the
    community from outside the workplace where people spend 8 hours
    in a workplace, but where there have been mitigation strategies
    put in place, the vast majority of their time is outside and
    infections are community acquired.
        Chairwoman Adams. The lady's time has expired.
        Mrs. Miller-Meeks. So we are placing an undue burden on
    employers when, in fact, we are, as a former colleague said, we
    are socializing the responsibilities around COVID-19 to
    employers and taxpayers.
        Chairwoman Adams. The lady's time has expired.
        Mrs. Miller-Meeks. Thank you. I yield back my time.
        Chairwoman Adams. Thank you very much.
        I recognize now Representative Jayapal.
        You are recognized for five minutes.
        Ms. Jayapal. Thank you, Madam Chair.
        And I am proud to represent thousands of workers that do
    keep one of the United States' largest ports running in
    Seattle. Our current supply chain challenges perfectly capture
    the critical role of longshore and harbor workers in delivering
    goods to American consumers, factories, and businesses.
        And during the pandemic lockdown, these were some of the
    essential workers that put their lives on the line to keep
    essentials flowing into the country, displaying remarkable
    resilience and flexibility. And despite their invaluable
    contributions, longshore and harbor workers are not afforded
    the same protection as Federal workers and are not covered
    under State workers' compensation laws. That is an oversight
    that must be rectified.
        There are at least 59 COVID-19 cases that have been
    confirmed at the Port of Seattle since March 2020, resulting in
    hundreds of dollars in lost wages and medical expenses for
    those workers and their families.
        So, Mr. Godfrey, under the current requirements of the
    Longshore and Harbor Workers' Compensation Act, what kind of
    documentation is required to meet the standard to get a COVID-
    19-related claim approved? And what is the hardest requirement
    to meet?
        Mr. Godfrey. Sure. Thank you for that question.
        First, I would point out I have had the opportunity since
    becoming Director of OWCP to tour ports, and I have seen not
    only with the ports in terms of the supply chain, but I have
    also seen ship repair, shipbuilding, and I have seen the very
    close quarters and the hazardous exposures that they do have.
        Obviously, as it relates to the Longshore program, the
    medical evidence is it is difficult to establish because of the
    unknown of where infections can occur.
        And I do know that of the COVID claims that have been filed
    program-wide that we have been able to determine from our
    review, less than 10 percent of those claims have been
    accepted, whereas under the FECA program and others, the
    numbers are obviously significantly higher, over 81 percent
    within the FECA program.
        Ms. Jayapal. Well, you are teeing it up perfectly for my
    next question because you had described how the American Rescue
    Plan improved access to workers covered by the Federal
    Employees' Compensation Act by shifting the presumption of
    COVID-19 claims.
        But as you say, the OWCP has processed more than 19,000
    coronavirus-related claims under FECA since February 2020 and
    has 200 pending claims, but, meanwhile, of about 1,300, just 7
    percent of COVID-19 claims filed by longshore and harbor
    workers have been approved.
        So based on your experience of implementing this policy,
    what would be some of the impacts of H.R. 3114 on case approval
    rates and program administration?
        Mr. Godfrey. Sure. I think one of the first things to note,
    we have seen the 22,000 claims that have been filed and the
    18,000 claims that have been accepted for COVID-related matters
    from Federal civilian employees under FECA. The number that I
    understand is accurate is 2.1 million Federal civilian
    employees.
        So the numbers that we are seeing are a very small number
    of Federal workers who actually had claims. And of those
    claims, many of them actually had no lost time or medical costs
    at all.
        So it is difficult for me to make a jump to know exactly
    how that would correspond with the longshore program. But what
    I do see is that the number of workers, as a percentage, is
    small that file a COVID claim.
        And I think the data that we have seen from NCCI, the
    National Council on Compensation Insurers, also supports that
    the average cost per claim where there is actually costs to
    that claim is approximately $8,700.
        Ms. Jayapal. Thank you.
        And how do the recordkeeping and reporting provisions of
    the bill compare to the typical cost of administering workers'
    compensation?
        Mr. Godfrey. I am not certain of what you are asking in
    that question. I apologize.
        Ms. Jayapal. Just essentially wanting to clarify that the
    costs are modest and they are not more complicated than
    administering any other workers' compensation program. The
    primary reporting requirement is just asking for verification
    that the employer is compliant with the current COVID-19 safety
    guidelines, correct?
        Mr. Godfrey. That is correct, yes.
        Ms. Jayapal. Great.
        Well, I think moving freight, operating equipment, building
    ships in America's ports and harbors have always been dangerous
    jobs, and the costs that are incurred by lost wages due to
    coronavirus illness and quarantine, not to mention the cost of
    medical care itself, can make or break a family's budget.
        And so H.R. 3114 is a commonsense bill that extends the
    same protection that Federal employees enjoy to longshore and
    harbor workers, and I really believe that we must ensure that
    these essential workers have easy access to the benefits they
    have earned.
        Thank you, Madam Chair. I yield back.
        Chairwoman Adams. And thank you.
        Is Representative Owens on?
        Mr. Owens. Thank you, Madam Chair.
        Coal mining has been a vital part of the economy, the
    livelihoods, in the State of Utah for 150 years. Many in my
    State and districts are impacted by the black lung program.
        Mr. Costa, how much do the western coal operators pay into
    this fund? And, second, how much in benefits are paid out of
    the fund to employees in the western operation versus
    contributions that pay out in the eastern operations?
        And, Mr. Godfrey, if you wouldn't mind, if you have any
    other additional thoughts you would like to add to expand,
    please feel free to do so.
        Mr. Costa. Thank you, Congressman.
        Unfortunately, I don't know how much each--the companies in
    each area have paid into the program. I do know how much has
    been paid out in the different areas of the country.
        So in answer to the second part of your question, roughly
    $145 million has been paid to beneficiaries in the eastern part
    of the country, east of the Mississippi, primarily in the
    Appalachia part of the country, and $4 million has been paid in
    States west of the Mississippi.
        So there is a very large difference in the amount of
    benefits going to both sides and the number of beneficiaries --
    where the beneficiaries are located. Most of the beneficiaries
    are located in the Appalachia region.
        Mr. Owens. OK. Thank you.
        Mr. Godfrey, would you like to add anything to that?
        Mr. Godfrey. I actually do not have data related to those
    numbers.
        Mr. Owens. OK.
        Thank you. And I yield back the remainder of my time. Thank
    you so much.
        Chairwoman Adams. Thank you.
        Let's see, I am trying to see who is----
        Staff. That would be Mr. Good, Madam Chairwoman.
        Chairwoman Adams. OK. Mr. Good, you are recognized for five
    minutes.
        Mr. Good. Thank you, Madam Chair.
        And I would like to echo the remarks of Ranking Member Foxx
    a few moments ago about coming into the Committee hearing in
    person. And I would like to just let everyone know that the
    Committee hearing room is Rayburn 2175.
        I have not seen anyone from the majority party in the
    Committee hearing room since I got here a year ago. And it is
    comfortable, and it is accommodating. And it would be much more
    meaningful for us all to be in person here with our witnesses
    instead of hiding behind COVID and pretending that we are
    afraid to come into the hearing room because of that.
        But instead of discussing that, I will move to my line of
    questioning --or further, I should say, to my line of
    questioning here.
        I share the concern that has been expressed for our injured
    workers, but I am also concerned for all the injured small
    business owners and their employees who have been hurt over the
    last year by these disastrous economic and fiscal policies of
    the Biden administration.
        Over the last 10 to 11 months we have seen historically
    high gas prices, grocery prices, and causing massive overall
    booming inflation from these policies, and that is hurting
    Americans all across the country.
        But instead of discussing that, my colleagues in the
    majority would rather discuss anything else, and that is
    because Congress is doing what it does best, making the problem
    worse. We are spending money we don't have and implementing
    damaging and dangerous policies to advance the radical Biden-
    Pelosi socialist/communist agenda. And the Fed continues to
    accommodate by printing more money to pay for it.
        But workers across the country continue to pay more for
    their essentials, and what is left of their hard-earned savings
    is being robbed of its value as the Federal Government
    continues to devalue the dollar.
        This is not complicated, but our so-called experts in D.C.
    think they can lie their way out of this. However, Americans
    are not fooled because they can see and feel these rapidly
    rising prices. But the majority would rather talk about other
    things, but Americans need answers.
        So, Mr. Godfrey, does the Biden administration consider
    inflation to be an issue that is negatively impacting workers'
    compensation?
        Mr. Godfrey. Thank you for that question.
        It is not my understanding that that is an issue that is
    before OWCP, no.
        Mr. Good. Do you think that the administration understands
    that rapidly rising gas, grocery, utility, and other prices are
    hurting lower-income, middle-income, and fixed-income Americans
    and, frankly, disproportionately impacting the minority
    community?
        Mr. Godfrey. I have no personal knowledge, but I would
    assume they do, yes.
        Mr. Good. Yes. Well, I hope that they do, which makes it
    even worse if they do understand that but yet continue to
    double down on these policies.
        Other than calling for more spending, which is obviously
    going to make the problem worse, what does the Biden
    administration plan to do to try to actually help the problem
    --help them fix the problem?
        Mr. Godfrey. Well, one of the things that I know simply
    from OWCP is the work on the longshore supply chain issue. What
    we have seen is, since the introduction of the changes to the
    supply chain, especially at the Los Angeles-Long Beach Port, we
    have seen increased workloads. We have seen increased capacity.
    We have seen the shipping containers being moved following the
    recommendations of the administration. And what we have also
    seen is no increased workers' compensation claims because----
        Mr. Good. If I may interject, please.
        I am glad you brought up the supply chain issue, because
    this administration seems to think that these unconstitutional
    vaccine mandates that are currently, thankfully, being blocked
    by the courts are not only the answer to inflation, they
    actually think that if we fire more workers, if we fire more
    people because they want to protect their own healthcare,
    protect their own bodies, protect their own healthcare
    decisions, if we fire more people, so if we have fewer workers
    who will produce fewer goods, that will somehow make prices go
    down.
        I need to lend them my high school economics textbook.
        In your view, Mr. Godfrey, are the Americans who lose their
    jobs because they want to make their own healthcare decisions,
    should they be entitled to compensation?
        Mr. Godfrey. Are you referring to workers' compensation or
    unemployment compensation?
        Mr. Good. Just compensation generally. Should they qualify
    for that, if they are being fired by the Federal Government
    essentially for wanting to make their own healthcare decisions?
    Or said differently, do you think that firing millions of
    workers is going to help the inflation crisis?
        Mr. Godfrey. That is outside my purview as Director of
    OWCP.
        Mr. Good. Yes. Well, I want to move to another issue
    affecting workers' compensation and driving up the cost of fuel
    and utilities, not to mention threatening our national security
    and increasing our carbon --increasing overall carbon emissions
    because it is forcing us to purchase and ship energy from
    countries who hate us and don't have our emission control
    standards, and this is the impact of the President's war on
    energy.
        We knew this was going to happen from the first day when
    the Biden administration put an end to the Keystone pipeline.
    These radical climate policies are decimating American energy,
    driving up the price of fuel and utilities, and destabilizing
    the global economy. And, unfortunately, I am out of time for
    you to answer my questions.
        But thank you, Madam Chair.
        Chairwoman Adams. And I thank the gentleman.
        Let's see, next we have----
        Staff. That would be Mrs. Steel, Madam Chairwoman.
        Chairwoman Adams. All right.
        Mrs. Steel, the gentlewoman from California, you are
    recognized for five minutes.
        Mrs. Steel. Thank you, Madam Chair.
        Recently, the United States reached a sad milestone by
    surpassing 100,000 drug overdose deaths in the last 12-month
    period for the first time.
        The largest number of Federal employees outside of the
    capital region is in my home State of California. Any changes
    to Federal workers dropped over those programs with all other
    programs will be impacted the most in California. The pandemic
    has only exacerbated opioid and drug misuse.
        So I want to ask Mr. Godfrey, Department of Labor leaders
    recently reallocated resources from its opioid management to
    the COVID-19 claims justification.
        Do you believe it is appropriate to use the Federal
    Employees' Compensation Act opioid management funds when the
    opioid overdose epidemic is still an extreme threat?
        Mr. Godfrey. Thank you for that question.
        I do believe it is because we have seen significant drops
    in the number of opioid prescriptions that are used, the number
    of individuals who have been on opioids for more than 100 days.
    All of the statistics that we have seen related to opioid
    usage, because of the work of OWCP and the very people that you
    are speaking of, has significantly reduced those numbers far
    below, I think, what we see in the general population.
        And I think where we were needing staff was to deal with
    the COVID epidemic, with the pandemic. And we have now moved in
    with the FECA program to a pharmacy benefits management
    service. And that, in and of itself, has even greater levels of
    protection than what were previously being provided.
        So I am comfortable that going forward that it was the
    right decision to utilize those staff Members where they were
    most needed because we have seen no, zero impact on opioid
    usage amongst FECA employees. In fact, the numbers continue to
    reduce.
        Mrs. Steel. Really? Because what you are saying about
    opioid drug overdose is reduced. But you know what? That is not
    what we really hear and that is not what we really see.
    Especially Orange County has been growing too, and not just
    Orange County but California and other States too. So I think
    kind of like what you are saying is contradicting about the
    opioids.
        But let's move on. So what actions has the Office of
    Workers' Compensation Programs taken to combat opioid and drug
    misuse?
        Mr. Godfrey. Sure. And I think just for purposes of
    clarification, the numbers that I am speaking about is that
    population of individuals who have Federal workers'
    compensation claims and who are beneficiaries with accepted
    claims. I am not speaking about the overall community outside
    of the Federal workforce or the Federal workforce that has had
    Federal work-related injury.
        So I think that may be where we are sort of looking at
    different numbers.
        Mrs. Steel. So do you have any of those stats of those
    Federal employees? How many? In which States? And what kind of,
    like, percentages of employees are using through workers'
    compensation programs or other Federal workers' drug overdose
    programs?
        Mr. Godfrey. I can certainly get the information to you by
    State. But what I can tell you is that there is less than 300
    FECA claimants that have a diagnosed and accepted opioid use
    disorder-related condition at this time and approximately 9,000
    Federal FECA claimants that had been taking opioids for over 1
    year, with 1,500 of them at levels above 90 dose equivalents.
        This is the largest reduction from January 2017 because the
    levels of 17 --they were previously 17,000 taking them for
    longer than 1 year. So that is going from 17,000 down to 9,000.
    That has been a very, very significant drop.
        And then in terms of those that take the highest levels of
    opioids have gone from 4,000 down to only 1,500.
        Mrs. Steel. Love to see those numbers. I mean, if Federal
    employees are getting much less numbers and it has been
    decreased, it is a very, very good sign. But love to look at
    those stats and love to have it. So thank you.
        But is the Biden administration taking the opioid overdose
    epidemic seriously? Because the last administration made many
    reforms to the Federal Employees' Compensation Act program to
    combat opioid misuse. So what is currently being done to build
    on those successes?
        Mr. Godfrey. I agree, during the past administration from
    2017 on there were significant reductions in opioids, and that
    should be applauded. What we are doing now is building on what
    has been that accomplishment, trying to take it farther through
    the protocols of the PBM, the pharmacy benefit management.
        Chairwoman Adams. The lady's time is up.
        Mrs. Steel. You know what, Madam Chair? I just want to get
    those stats from Mr. Godfrey. And you know what? Maybe I can
    get these answers in writing. It is going to be really great.
        Thank you very much for your answers.
        Chairwoman Adams. And thank you.
        OK. Representative Cawthorn, if you are on, you have five
    minutes, sir.
        Mr. Cawthorn. Excellent. Well, Subcommittee Chairwoman
    Adams, thank you very much.
        And, Congresswoman Steel, thank you for your questions to
    Mr. Godfrey. Those were great.
        I will be directing most of my questions to Mr. Costa.
        Like many Americans, I grew up idolizing Ronald Reagan, a
    President who believed in America and Americans. He was the
    Great Communicator. He could always turn a phrase in
    particular.
        And some of those that are sticking with me is when he
    said: Government isn't the solution; government is the problem.
    And the nine most terrifying words in the English language are:
    I am from the government and I am here to help.
        The history of American politics is believers in big
    government who believe that the government will come in and fix
    all our problems and then those freedom, liberty-minded
    citizens who send their own candidates to fight against that.
        Today we are once again noting the actions of the
    government that are set against the people, particularly in the
    case of the war on coal.
        Mr. Costa, the 2020 GAO report notes that from 2014 to 2016
    U.S. coal production decreased from 1 billion tons, which is an
    incredible number, to only 728 million tons. What impact does
    this decreased production have on the Black Lung Disability
    Trust?
        Mr. Costa. Yes, Congressman.
        So the decrease in coal production has definitely had a
    strong impact on the amount of revenue that the Black Lung
    Trust Fund has been collecting as a result. It is a huge impact
    on it.
        In addition to the decrease in the amount of coal, we have
    also started to see a rise in the number of coal miners who are
    contracting black lung. So there is a good likelihood that we
    will see an increase in liability.
        At the same time, with more bankruptcies going on, there
    will be less production, so there should be less revenue coming
    in as well.
        Mr. Cawthorn. I mean, that is absolutely correct. I think
    it was there to take care of all the shortfalls for the
    funding, and it is really a true problem.
        And during the Obama administration, Democrats repeatedly
    asserted their regulations on coal-fired power plants would not
    jeopardize the industry. And all of us at the time realized
    that was asinine and not true, but we now know that to be
    untrue as a fact.
        Democrats' war on coal has led to the bankruptcy of dozens
    of operators, jeopardizing the economies of the Rust Belt
    States and leading to increased liabilities for the Black Lung
    Disability Trust Fund.
        Now, having said all that, I want to be clear on this. Does
    declining coal production contribute to the trust fund's
    financial challenges? And going even further, it seems likely
    that the effect of the government interference was twofold in
    the negative: both reducing the amount of coal available and
    decreasing the funds available for the trust fund.
        Is that something that you would agree with, Mr. Costa?
        Mr. Costa. Yes, declining coal production has impacted the
    trust fund's revenue. In addition, though, there was a year
    where the coal tax dropped as well, and that also had a rather
    large impact.
        We are estimating that if the coal tax drops again in
    January that the trust fund will go --will have about $15
    billion of debt by 2050, and that is accounting for additional
    potential bankruptcies, as well as drops in revenue.
        Mr. Cawthorn. Well, let me ask you one more question
    regarding the bankruptcies. I mean, how many of these operators
    have we lost since the 2014 time when they really declared this
    war on coal?
        Mr. Costa. We estimated that there--we believe there have
    been at least five additional bankruptcies since we reported on
    the bankruptcies from 2014 to 2016, both --of self-insured
    companies that is. And at least three of those companies have
    transferred liability that they had not properly set up
    collateral for to the trust fund.
        Mr. Cawthorn. Well, I mean, that is terrible. I can't
    imagine how many lives have just been completely disrupted,
    people's financial plans destroyed by these Democratic policies
    which are so anti-American, anti-human, anti-energy. And,
    really, just thanks to the failed energy policies of this
    administration, it seems that the Black Lung Disability Fund
    and the American people would be better served by more coal
    production.
        Now, thankfully, thanks to an increase in demand, we are
    recognizing that there is an uptick in production. But can we
    really count on this uptick to continue going when we have a
    President who actually disdains the industry?
        Mr. Costa. I don't know that I am qualified to answer that
    question, sir. We looked at the trust fund's----
        Mr. Cawthorn. Well, on behalf of the American people, I
    think we all realize that this industry will be severely
    limited and attacked by this administration. It is very, very
    sad.
        And I hope the Democrats can really come to their mind and
    we can all come together and try and fix this so we don't have
    more bankruptcies coming even since the five that we had since
    you did your last study.
        It is really sad so many people lose their livelihood, so
    many people are just--they take pride in working with their
    hands and take pride in providing for this country. And it
    creates a spiritual poverty when people also are incapable of
    actually being able to serve this country by serving our energy
    needs.
        So, Mr. Costa, thank you very much.
        Chairwoman Adams, I will now yield back. Thank you very
    much from your fellow North Carolinian.
        Chairwoman Adams. Thank you. Thank you, Mr. Cawthorn.
        I think all Members, Committee Members, have spoken. I did
    want to respond before I provide time for Mr. Courtney and Mr.
    Mrvan in terms of responding to the comment that was made
    earlier about the Committee.
        We did as a courtesy wait about 1five minutes. But the
    Committee was announced that it would run, be held at 2
    o'clock, regardless of whether there was votes or not.
        But also, if you look at House Rule XI, clause 2, the
    Committee Rule maintains that a quorum for the purpose of
    taking testimony and receiving evidence is any two Members. We
    had a majority. I just wanted to clear that up for the record.
        I want to recognize now Mr. Courtney.
        You are recognized for five minutes, sir.
        Mr. Courtney. Thank you, Madam Chairwoman, and thank you
    for your courtesy to allow me to join the Subcommittee today.
    And I just have a couple of quick questions.
        Mr. Godfrey, recently I introduced legislation, bipartisan
    legislation, with my good friend Mr. Walberg, the Improving
    Access to Workers' Compensation for Injured Federal Workers
    Act, H.R. 6087, which will update the Federal Employees'
    Compensation Act program to allow injured workers to seek care
    from nurse practitioners and physician assistants in addition
    to physicians.
        In 1974, when Congress amended the Federal Workers'
    Compensation Program, Congress specifically allowed workers to
    seek treatment from their personal physician in order to
    provide employees free choice of who provides their care.
    However, these changes only allowed for a physician to provide
    their treatment and sign off on claims.
        In the interim, as I think we all know, physician
    assistants and nurse practitioners have become a major
    component of the healthcare system and supplement the physician
    workforce and serve as primary care providers and specialists
    across the country, especially in rural and underserved areas.
        Our legislation would align the Federal law with the
    reality that nurse practitioners and physician assistants are
    the first-line providers for many Federal workers, and they
    should be incorporated into the program and would help address
    barriers to accessing the compensation workers are eligible
    for, in part because it can be difficult sometimes to find a
    physician participating in the program.
        So, Mr. Godfrey, can you describe the challenges that
    workers currently face in having their claims approved as it
    relates to finding a physician? And why is it difficult for
    them to find a physician willing to participate in the program?
        And, last, from your perspective, would allowing physician
    assistants and nurse practitioners to take some of these cases
    help improve access to compensation for eligible workers?
        Mr. Godfrey. Thank you for that question. There are several
    things that I think are responsive to your question.
        First, I think the issues related to a Federal system, with
    physicians located in one State, sometimes they have difficulty
    with the billing practices.
        And what we are looking to do is move forward with a
    medical provider network which would allow us to have a greater
    ability to access and work with physicians to make sure that it
    is easier for them to work with us so that when they provide
    services they can be timely paid for the services that they do
    provide. So I think that will be one instance.
        Obviously, you touched on the other issue. Rural America
    oftentimes, I know coming from Iowa, it is difficult to have a
    doctor in a specific town. It may be that a nurse practitioner
    or a physician assistant is the only individual who can provide
    the immediate treatment that you need or the ongoing care that
    is required following a workplace injury.
        I would note that my prior position was as the Chief Judge
    of the Employees' Compensation Appeals Board. And it is
    accepted within the FECA program for nurse practitioners and
    physician assistants to provide care. I think the distinction
    that we have seen is that, based upon existing case law or
    regulation, that a physician is given greater weight in terms
    of an opinion than a physician assistant or a nurse
    practitioner.
        So I think that is where we need to be careful in terms of
    moving forward. But I agree with you, the more that we can do
    through telehealth, the more we can do to utilize nurse
    practitioners and physician assistants will make it much easier
    for the claimant population to get the care that they need.
        Mr. Courtney. Great. Well, thank you.
        And as I said, this is a bill which, in my opinion, is just
    sort of updating the law and modernizing the law, and it
    basically allows the law to be aligned with the reality that is
    out there. And I think all of us can personally attest to the
    fact that the role, that this level of practice is now well
    established in the U.S., and we just want to make sure, again,
    that the Federal employee compensation system reflects that
    with this update.
        So thank you for your testimony.
        And thank you, Madam Chairwoman, for letting me participate
    this afternoon.
        Chairwoman Adams. And thank you, Representative Courtney.
        I am going to recognize Representative Stevens, and then we
    will get to Mr. Mrvan.
        Representative Stevens.
        Ms. Stevens. Yes, I am here, Madam Chair, and thank you so
    much for having today's important hearing. This is one of the
    major reasons I have been just compelled to serve on this
    Committee and do the work of this Subcommittee, particularly,
    on workforce protections.
        Today's topic regarding the safety net and the conversation
    that we have had around workers' comp and some of the threats,
    this is very visceral to us in Michigan. It has come up to me
    from constituents time and time again.
        And as we hone in I would like to center us on opioid abuse
    again, because we have just seen an incredible toll of
    fatalities, of overdoses. We have injury claims being made each
    and every year. And recently, as of 2018, approximately 27,000
    people in the Federal Workers' Compensation Program who are
    chronic opioid users.
        So, Mr. Godfrey, the Department has taken reforms for
    prescribing opioids to treat pain, but it is certainly still
    excessively permissive policies in the past that have resulted
    in tens of thousands of injured workers becoming addicted. And
    I would be curious for you to just describe how DOL is managing
    this today and what we need to know about some corrective steps
    that you have put into place.
        Mr. Godfrey. Yes. Thank you for that question.
        I agree, and it has been a national tragedy. Outside of the
    workers' compensation system, again, we see lives disrupted
    unexpectedly by simply being prescribed an opioid and addiction
    following from that.
        The Department of Labor has recognized, going back before
    even 2016, as this tragedy unfurled itself, and the actions
    that have been taken since that time, as I have talked about
    with the statistics that I shared with Representative Steel and
    will provide in greater detail, show that there has been a
    significant decrease.
        But it does require continued monitoring. And we have made
    sure that, first off, limiting the number of authorizations and
    the dosages of those authorizations going back to the fall of
    2019 with a bulletin. But now, moving into the PBM, the
    pharmacy benefits management service, we do have, I believe,
    even greater protections in place.
        Again, this impacts people within the workers' compensation
    area, and that is where we can make an impact. But, obviously,
    this is just a horrible tragedy that is affecting people both
    outside of the workers' compensation system and in it. And any
    way that we can learn from what we have done in DOL to be
    successful I think should be shared.
        Ms. Stevens. Yes, it should be shared, and certainly not
    bearing the full responsibility. We appreciate your answer and
    your work in general.
        One other question for you, separate to what we were
    talking about on opioids, is how are you at all --and this is
    out of curiosity for the scope of work that you are undertaking
    as a Director of the office in the Department of Labor --but
    how are you working with States and States' programs? Because I
    can just imagine that getting really busy and really
    complicated, and I am wondering if I can help you.
        Mr. Godfrey. Sure. I think the way that I could answer that
    best is to note that as a commissioner in the State of Iowa, I
    was involved in national and international organizations
    relating to State workers' compensation systems and
    jurisdictions. And I built relationships, mainly through the
    International Association of Industrial Accident Boards and
    Commissions, and that is an organization which all of the
    States and several jurisdictions from Canada, Australia,
    Germany take part in.
        Although from OWCP working with States really does not
    exist to a large extent, working through organizations like
    that where we can build relationships, where we can share
    information, our best practices and our data can be shared with
    the States.
        For instance, the opioid work that we have done. I know
    many States have made great progress through their work comp
    systems with opioids. But the things that we can share with
    them, that has been very, very helpful.
        Ms. Stevens. Thank you for that.
        And Madam Chair, I yield back.
        Chairwoman Adams. Thank you, Representative Stevens. Thank
    you very much.
        I am going to recognize Mr. Mrvan now.
        You have five minutes, sir.
        Mr. Mrvan. Thank you, Chairwoman.
        I just want to take a moment to thank Chair Adams and the
    Committee staff for holding this important hearing today to
    provide oversight of the OWCP and for including in this
    discussion legislation I have introduced, the Longshore and
    Harbor Workers' COVID-19 Compensation Act.
        Throughout the pandemic, maritime workers have performed
    essential work. They have toiled to keep our ports operating,
    loading and uploading ships, building and repairing vessels,
    and oftentimes working in close quarters as they do so.
        And as has been discussed in this hearing today, workers
    deserve adequate recourse when they suffer workplace injury or
    illness.
        However, hundreds of longshore and harbor workers have
    contracted COVID-19, a deadly illness, have lost out on wages
    due to mandatory quarantine requirements, and have incurred
    medical expenses due to illness.
        But those workers have been unable to access workers'
    compensation afforded under the Longshore and Harbor Workers'
    Compensation Act unless they overcome a burdensome process to
    prove they were infected at work.
        To remedy this issue, my bill will establish a conclusive
    presumption that longshore and harbor workers who have tested
    positive for COVID-19 contracted the virus at work, making them
    eligible for workers' comp under the LHWCA.
        This measure would ensure that longshore and harbor workers
    enjoy the same presumption that essential workers in several
    States and frontline Federal workers now benefit from and serve
    to protect the health, safety, and livelihood of our maritime
    workers.
        I thank the Chairwoman again for this time and her
    leadership on this legislation. And I, again, thank her for the
    opportunity to discuss this important legislation.
        And I thank you, and I yield back.
        Chairwoman Adams. Thank you very much, Mr. Mrvan.
        Have all of the Members had an opportunity to speak? We
    have had some people come in and out.
        OK. Great.
        Pursuant to Committee practice, materials for submission
    for the hearing record must be submitted to the Committee Clerk
    within 14 days following the last day of the hearing, so by the
    close of business on December 16, preferably in Microsoft Word
    format.
        Only a Member of the Subcommittee or an invited witness may
    submit materials for inclusion in the hearing record, and the
    materials must address the subject matter of the hearing.
    Please submit materials to the Committee Clerk electronically
    by emailing submissions to edandlabor.hearing@mail.house.gov.
        Again, I do want to thank the witnesses for their
    participation today, and I thank all of the Members of the
    Subcommittee for their attendance.
        The Members may have some additional questions for the
    witnesses, and so we ask that you please respond to those
    questions in writing. The hearing record will be open for 14
    days in order to receive those responses.
        I do want to remind my colleagues that, pursuant to
    Committee practice, witness questions for the hearing record
    must be submitted to the Majority Committee Staff or Committee
    Clerk within 7 days. The questions submitted must address the
    subject matter of the hearing.
        I want to recognize the distinguished Ranking Member for a
    closing statement.
        Mr. Keller.
        Is the Ranking Member present?
        Mr. Keller. Yes, I am, Madam Chair.
        Chairwoman Adams. OK.
        Mr. Keller. I would ask unanimous consent to enter into the
    record a letter from more than 90 national and State trade
    associations and businesses, including the National Federation
    of Independent Business, opposing the authorization of funding
    for DOL to monitor State workers' compensation programs.
        Chairwoman Adams. Yes, sir, so recorded.
        Mr. Keller. Thank you.
        And now may I do my closing?
        Chairwoman Adams. Yes, sir, you may.
        Mr. Keller. Thank you.
        I would like to thank the witnesses for their testimony.
        Today we discussed a wide variety of Federal workers'
    compensation programs, in addition to legislation which
    purports to solve shortcomings in many of them. Unfortunately,
    many of these proposals discussed today only add additional
    layers of expense to already bloated and mismanaged Federal
    programs.
        For instance, the Black Lung Disability Trust Fund, or the
    BLDTF, has been in debt since it was created over 40 years ago.
    Many of the trust fund's problems stem from the Department of
    Labor's decades-long failure to provide proper oversight or
    enforcement, in addition to its interest accumulation on its
    debt.
        The Trump administration made great strides to correct
    flaws in the Black Lung Benefits Program and to revamp the
    self-insurance process for coal mine operators. But the Biden
    administration chose to weaken the Black Lung Trust Fund by
    withdrawing these commonsense reforms.
        Additionally, Committee Democrats introduced a partisan
    bill just yesterday which allegedly addresses the failings of
    the Black Lung Benefits Program. It is just irresponsible and
    absurd to have a legislative hearing on a bill released only a
    day before with no stakeholders present to testify and provide
    feedback.
        With regard to the FECA program, however, bipartisan
    agreement should be possible. In the 112th Congress, this
    Committee and the House of Representatives took steps to reform
    FECA by passing bipartisan legislation. I look forward to
    working with my Democrat colleagues with the hope that we can
    repeat this success in the 117th Congress.
        Rather than implement radical proposals, such as improperly
    monitoring State workers' compensation programs, I urge the
    Office of Workers' Compensation Programs, OWCP, to focus on
    reforming the programs it currently oversees by immediately
    addressing recommendations made by the Government
    Accountability Office and the Office of Inspector General.
        And rather than consider partisan and radical legislation,
    I hope this Committee can return to bipartisan cooperation to
    ensure these programs truly help injured workers, are efficient
    and effective, and make good use of taxpayer dollars.
        Again, I thank the witnesses for participating today.
        And I yield back.
        Chairwoman Adams. Thank you, Mr. Keller. We appreciate your
    comments.
        I want to now recognize myself for the purpose of making my
    closing statement. But before I do that, because we have heard
    at least three times today during this hearing about the
    meeting and how it was conducted and when, I just want to
    remind the Members that, pursuant to the rules and regulations
    of the House and the Speaker's extension of the covered period
    --and that has to do with COVID, and, hopefully, things won't
    get worse --the hearing was noticed. It was called to order.
    And it was noted as a completely remote hearing, which
    certainly is the prerogative of the Chair. And so we are going
    to continue to conduct the meeting in accordance with all of
    the rules that we have.
        So I just want to remind the Members of that.
        And let me just say to our panelists, thank you for your
    time. Thank you to the witnesses for your testimony. We learned
    a lot today about the new initiatives being advanced by the
    Department of Labor, including the reinstitution of the
    monitoring and reporting on State workers' compensation
    programs.
        Greater awareness of these initiatives is needed because
    many State workers' compensation programs have been pared back
    as part of a race to the bottom as States compete with each
    other to reduce employer costs.
        The implications for the Federal budget are clear, which is
    why there is a role for the Federal Government. When States
    have at the request of corporate interests cut back benefits
    for workers with disabilities, it is the injured workers and
    the taxpayers, instead of employers, who are forced to foot the
    bill for serious workplace injuries. Without income, workers
    with disabilities must then turn to Social Security Disability
    Insurance and Medicaid or Medicare for medical costs.
        The Department of Labor is commended for addressing these
    issues, and we are hopeful that the 5 years of adding funding
    for this office included in the Build Back Better Act, when
    enacted, will ensure that this needed oversight of State
    programs can move forward on a long-term basis.
        Today we also learned that the Office of Workers'
    Compensation Programs has not implemented the necessary changes
    to protect taxpayers from self-insured coal operators who fail
    to provide adequate collateral to cover the cost of black lung
    benefits if they file for bankruptcy.
        In a hearing on this subject just 2 years ago, GAO flagged
    what needed to be done to fix the problem. We need a firm date
    by when OWCP will provide a solution, a firm date.
        The system has been gamed for too long, and at least a
    billion dollars in black lung disabilities have been
    transferred from coal operators and Wall Street investors to
    the trust fund, driving it even further into debt. The red ink
    today is over $6 billion.
        DOL also needs to develop a long-term strategy to shore up
    the solvency of the trust fund so there will be no question
    that the resources are there for miners and their survivors to
    cover black lung claims.
        The black lung excise tax rate will drop by 55 percent at
    the end of December unless Congress extends it. Fortunately, a
    short-term extension is in the Build Back Better Act covering
    through 2025, and we are awaiting Senate action.
        That excise tax alone is not enough, however. A long-term
    strategy is needed because coal production has declined and
    will continue to do so.
        We should not be in a situation where the Federal
    Government is left facing the consequences of the cost of a
    lethal occupational disease caused by operators who failed to
    adequately protect their miners.
        And, finally, we learned that there are opportunities to
    improve the Federal workers' compensation programs, and I hope
    we can move forward to pass legislative solutions that
    modernize Federal workers' compensation programs.
        Again, I want to thank you, Mr. Carbajal, Mr. Godfrey, Mr.
    Costa, for joining us today.
        If there is no further business, without objection, the
    Subcommittee stands adjourned. Thank you.
        [Additional submissions by Mr. Carbajal follow:]

        [Additional submissions by Mr. Takano follow:]
        [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        [Whereupon, at 4:08 p.m., the Subcommittee was adjourned.]

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