[Senate Hearing 119-30]
[From the U.S. Government Publishing Office]


                                                      S. Hrg. 119-30

                   NOMINATION OF THE HONORABLE DAN BISHOP, 
                      OF NORTH CAROLINA, TO BE 
                      DEPUTY DIRECTOR OF THE OFFICE 
                      OF MANAGEMENT AND BUDGET

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

                                HEARING

                               BEFORE THE

                        COMMITTEE ON THE BUDGET

                          UNITED STATES SENATE

                    ONE HUNDRED NINETEENTH CONGRESS

                             FIRST SESSION

                               ----------                              

 March 5, 2025--HEARING ON THE NOMINATION OF THE HONORABLE DAN BISHOP, 
 OF NORTH CAROLINA, TO BE DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT 
                               AND BUDGET

  March 12, 2025--EXECUTIVE BUSINESS MEETING ON THE NOMINATION OF THE 
 HONORABLE DAN BISHOP, OF NORTH CAROLINA, TO BE DEPUTY DIRECTOR OF THE 
                    OFFICE OF MANAGEMENT AND BUDGET

                               ----------                              

           Printed for the use of the Committee on the Budget
           
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

                              www.govinfo.gov

                               __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
59-626                     WASHINGTON : 2025                  
          
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                        COMMITTEE ON THE BUDGET

              LINDSEY O. GRAHAM, South Carolina, Chairman
              
CHARLES E. GRASSLEY, Iowa            JEFFREY A. MERKLEY, Oregon
MIKE CRAPO, Idaho                    PATTY MURRAY, Washington
RON JOHNSON, Wisconsin               RON WYDEN, Oregon
ROGER MARSHALL, Kansas               BERNARD SANDERS, Vermont
JOHN CORNYN, Texas                   SHELDON WHITEHOUSE, Rhode Island
MIKE LEE, Utah                       MARK R. WARNER, Virginia
JOHN KENNEDY, Louisiana              TIM KAINE, Virginia
PETE RICKETTS, Nebraska              CHRIS VAN HOLLEN, Maryland
BERNIE MORENO, Ohio                  BEN RAY LUJAN, New Mexico
RICK SCOTT, Florida                  ALEX PADILLA, California

                  Nick Myers, Majority Staff Director
                   Ben Ward, Minority Staff Director
                   Mallory B. Nersesian, Chief Clerk
                  Alexander C. Scioscia, Hearing Clerk
                            
                            C O N T E N T S

                              ----------                              
                                                                   Page
March 5, 2025--Hearing on the Nomination of the Honorable Dan 
  Bishop, of North Carolina, to be Deputy Director of the Office 
  of Management and Budget.......................................     1
March 12, 2025--Executive Business Meeting on the Nomination of 
  the Honorable Dan Bishop, of North Carolina, to be Deputy 
  Director of the Office of Management and Budget................    85

                OPENING STATEMENTS BY COMMITTEE MEMBERS

Senator Lindsey O. Graham, Chairman.............................. 1, 85
Senator Jeffrey A. Merkley....................................... 2, 85
    Prepared Statement 

Senator Ted Budd.................................................     3

                    STATEMENTS BY COMMITTEE MEMBERS

Senator Johnson..................................................     9
Senator Lee......................................................    10
Senator Van Hollen...............................................    12
Senator Kennedy..................................................    15
Senator Murray...................................................    17
Senator Scott....................................................    19
Senator Warner...................................................    21
Senator Ricketts.................................................    23
Senator Padilla..................................................    25
Senator Moreno...................................................    27
Senator Lujan....................................................    29
Senator Whitehouse...............................................    34

                               WITNESSES

The Honorable Dan Bishop, of North Carolina, to be Deputy 
  Director of the Office of Management and Budget................     3
    Prepared Statement...........................................    41
    Statement of Biographical and Financial Information..........    43

                                APPENDIX

Responses to pre-hearing questions for the Record
    Hon. Bishop..................................................    51
Responses to post-hearing questions for the Record
    Hon. Bishop..................................................    71
Chart submitted by Senator Johnson...............................    83

 
 THE NOMINATION OF THE HONORABLE DAN BISHOP, OF NORTH CAROLINA, TO BE 
         DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET

                              ----------                              


                        WEDNESDAY, MARCH 5, 2025

                                           Committee on the Budget,
                                                       U.S. Senate,
                                                    Washington, DC.
    The hearing was convened, pursuant to notice, at 10:06 
a.m., in the Dirksen Senate Office Building, Hon. Lindsey O. 
Graham, Chairman of the Committee, presiding.
    Present: Senators Graham, Johnson, Marshall, Lee, Kennedy, 
Ricketts, Moreno, R. Scott, Merkley, Murray, Whitehouse, 
Warner, Kaine, Van Hollen, Lujan, and Padilla.
    Also present: Republican staff: Nick Myers, Majority Staff 
Director; Caitlin Wilson, Senior Counsel; Lillian Meadows, 
Counsel; Walker Truluck, Senior Policy Advisor; Nick Wyatt, 
Professional Staff Member.
    Democratic staff: Ben Ward, Minority Staff Director; Joshua 
Smith, Budget Policy Director.
    Witness: The Honorable Dan Bishop, of North Carolina, to be 
Deputy Director of the Office of Management and Budget.

              OPENING STATEMENT OF CHAIRMAN GRAHAM

    Chairman Graham. Good morning, everybody. Told them, you 
were still clapping over in the Chamber, but thanks for coming. 
We're going to do the Deputy Director of Office of Management 
and Budget (OMB). I'm going to make a short opening statement 
and turn it over to Senator Merkley. Here's my short opening 
statement. I am for eliminating waste and relooking at the 
government, but I'll be honest with you. If President's 
Emergency Plan for AIDS Relief (PEPFAR) is shut down, that's 
bad. There are 83 girls in Oman from Afghanistan that we're 
supporting. They're going to run out of money for their support 
in the middle of March. Nobody, I think, wants to send them 
back to Afghanistan.
    So what we're going to do is we're going to work with the 
Administration to the point that we can to give the government 
a good once over, but in the process of eliminating programs 
that make no sense, making them more efficient, I think it's 
important we realize there are some things in this world we 
need to do and find out what's wrong with the system because 
Rubio gives a waiver and the money still doesn't come and 
that's not acceptable. Senator Merkley.

            OPENING STATEMENT OF SENATOR MERKLEY \1\
---------------------------------------------------------------------------

    \1\ Prepared statement of Senator Merkley appears in the appendix 
on page 39.
---------------------------------------------------------------------------
    Senator Merkley. Thank you very much, Mr. Chairman, and 
welcome, Mr. Bishop. And today we're considering your 
nomination for Deputy Director of OMB and that's a very 
important post. OMB has been at the center of many 
consequential decisions in a very short of time. It's cancelled 
programs, it's suspended grants, it's reorganized departments, 
it's fired federal employees, and many of these actions are in 
violation of the law and certainly when it comes to 
Impoundment, in violation of the Constitution.
    The Executive Branch has existing ways to reorganize the 
federal government and to cut spending. It can work with 
Congress to pass a new law. The President can reorganize a 
department by asking Congress to put forward such legislation, 
but also the President has recession powers. He can send a 
request to change an existing program that's already been in 
the law. That was put into the 1974 Act because Congress wanted 
to give a fast track for a President to ask for changes for the 
existing law, subject to a simple majority and both sides 45 
days, but that recession power has not been used by this 
Administration.
    And the President, of course, can influence the budget to 
come. We're only months away from the start of the next year 
and the President has a lot of ability through bringing forward 
an initial budget, to lobby, in this case, his own party that 
controls both chambers to implement that vision into law. And 
if he doesn't like it, he can veto it. He can veto the bill. So 
he has tremendous power going forward.
    But here we are at this moment in a situation where instead 
of using the legal tools, the President is illegally acting and 
part of what members of this Committee is interested in is are 
you going to be party to these illegal actions? Are you going 
to be a party to violations of the Constitution? Are you going 
to be a different influence that says, hey, let's use these 
tools. We're months away from Fiscal Year (FY) 26, starts on 
October 1st. Let's build this vision for the future. Let's work 
with the majority in both chambers to make it happen.
    I can tell you in my town halls back home--and I do a town 
hall in every county every year. Most of my counties are very 
``red'' so it's a wide diversity of opinion that's brought to 
bear. There is extreme concern that the very foundations on 
which country operates, respect for the law and respect for the 
Constitution are in deep trouble.
    Today I want to find out if you're going to be part of that 
trouble or are you going to be part of restoring the vision of 
the foundation of law and the Constitution. There will also be 
questions today, I'm sure, from members regarding your specific 
viewpoints. That's normal in a hearing to understand better the 
talents and qualifications that you bring to the post. Look 
forward to that conversation.
    Chairman Graham. Thank you. So it's my pleasure to 
introduce the nominee, Dan Bishop, who I've known for a long 
time. I think you're an excellent choice. You and Mr. Vought 
will be a good team. He's currently a senior advisor at OMB. He 
was the North Carolina Attorney General campaign in 2024, so he 
knows what it's like to campaign throughout a big state. House 
of Representatives from 2019 to 2025. He was on the Judiciary 
and Homeland Security Committee and North Carolina State 
Senate, North Carolina State House, County Commissioner, and 
went to University of North Carolina (UNC)--nobody's perfect. 
So I just think you're the right guy at the right time and 
welcome to the Committee. Senator Budd.

                   STATEMENT OF SENATOR BUDD

    Senator Budd. Thank you, Chairman. Thank you, Ranking 
Member. I'm proud to introduce my friend, Dan Bishop, who I've 
known quite a long time. It's good to see his wife, Jo, here 
and a lot of other North Carolinians, almost South Carolinians, 
if you will, Chairman.
    So long before I was ever in Congress when Amy Kate and I 
lived in Charlotte, North Carolina, everyone would tell me if 
you want to know a great leader, if you want to get to know a 
great leader, get to know County Commissioner Dan Bishop. So I 
was in my twenties at that point and I was just getting started 
in business. I think I was a little too shy or a little too 
nervous to even give him a call because after all, Mecklenburg 
was a really big county. So I've got no doubt that Dan will 
bring the same tenacity of the job at OMB that he's shown 
throughout his career, both as a litigator in his time serving 
the people of North Carolina public office and through his role 
in the U.S. Congress.
    So Dan, best of luck and God speed. When I introduced Dan--
this has two hearings and when I introduced Dan at the Homeland 
Security Conference, I ended with y'all be nice. While I say 
that again, I want to leave the Budget Committee with this. If 
we're serious about shrinking our national debt and deficit, 
Dan is the man for the job of Deputy OMB Director. Dan, good 
luck and thank you.
    Chairman Graham. Would you please stand? Raise your right 
hand. Do you solemnly swear the testimony you're about to give 
before the Budget Committee is the truth, the whole truth, and 
nothing but the truth, so help you God?
    Hon. Bishop. I do.
    Chairman Graham. Thank you. The floor is yours.

STATEMENT OF THE HONORABLE DAN BISHOP, OF NORTH CAROLINA, TO BE 
   DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET \2\
---------------------------------------------------------------------------

    \2\ Prepared statement of Hon. Bishop appears in the appendix on 
page 41.
---------------------------------------------------------------------------
    Hon. Bishop. Thank you, Chairman Graham and Ranking Member 
Merkley, and members of the Committee for this hearing. Thank 
you also to my dear friend, Ted Budd. I think he was rubbing it 
in how much younger he is than me, but I want to thank him for 
his kind words of introduction at both hearings. Our friendship 
is a great personal privilege for me and the people of North 
Carolina should know, they do know, that they have a great 
champion in Ted Budd.
    After five years in the House of Representatives where I 
had the pleasure of working with several of you, I now find 
myself facing you on the other side of the dais. If I am 
confirmed, it would be an honor to work with you once again to 
serve our nation in a new capacity--to implement President 
Trump's vision and agenda.
    I want to thank my wife, Jo. She's also my partner in life 
in every respect, and my son, Jack, who's working hard at law 
school today, for their endless strength and support over my 
entire career, including this nomination process.
    Thanks also to my former Congressional office staff who've 
come to show their support at these hearings as my dear 
friends. And of course, I want to thank Director Vought for his 
support and for his extraordinary gesture of attending today. I 
was thrilled to see Director Vought confirmed and I can assure 
you that he is the man to get management of the federal 
government back on track.
    If confirmed, I look forward to serving as his Deputy. It's 
a tremendous honor to be nominated by President Trump to serve 
as the Deputy Director of the Office of Management and Budget. 
Unknown by name to many, it impacts every American household 
through crafting the President's budget, managing the federal 
government, reforming regulation, and much more.
    It's a critical part of ensuring that the government 
reflects the will of our democratically elected President in 
order to respond to the will of the American people. That's who 
government is for, not entrenched Washington interests and the 
political establishment.
    Something I always noticed when I was in Congress when I 
was out meeting folks in North Carolina is that the American 
people are way ahead of us in Washington. They know what is 
going on. They're smart, resourceful, resilient, and 
hardworking. They want accountability, transparency, and an end 
to the waste and the Washington status quo.
    They recognized in this past election that our nation was 
at a crossroads. On the precipice of either renewed greatness 
or ruin. In that precarious moment, they placed their 
confidence in President Donald Trump to usher in a new Golden 
Age for America. I'm here on behalf of that mission and the 
trust placed in President Trump by the people.
    Our children and grandchildren are being crushed. Their 
futures are being crushed under the massive burden of an out of 
control federal debt. For too long we've been spending money we 
don't have on things we don't need. Our government has been 
self-absorbed, inefficient, unaccountable, and maladministered. 
The good news is that we can fix all of those things and if 
confirmed, I will be laser-focused on doing so at the side of 
Director Russ Vought and the superb public servants at OMB.
    It's finally time for a government accountable to the 
people. I fought to deliver that my entire public service 
career from county commission, as Ted mentioned, to state 
legislature, to Congress, and it will continue to be my North 
Star. Whether elected or appointed, we must never forget the 
right of the people to decide. I know that I will never forget 
it.
    Thank you for considering my nomination. I look forward to 
your questions.
    Chairman Graham. Thank you very much. I'll start off here. 
Department of Government Efficiency (DOGE), do you believe 
that's a good exercise in terms of trying to find out what 
makes sense in terms of spending and what doesn't?
    Hon. Bishop. I think it's an absolutely outstanding effort, 
Senator. And I think the President's made it clear that's what 
he wanted to do. Elon Musk's contribution to the effort--it is 
changing the status quo.
    Chairman Graham. I agree. And let me tell you why.
    Somebody should've known a long time ago. What percentage 
of the federal budget is entitlements, plus interest?
    Hon. Bishop. Can't give you the exact percentage. You know, 
it's--when you get the interest added on, which now exceeds the 
Defense budget, we're talking, you know, well over 50 percent 
of the federal budget.
    Chairman Graham. Yes, I think it's north of 75 but Ron 
would know that.
    Hon. Bishop. Right.
    Chairman Graham. I think it's like 78.
    Hon. Bishop. Right.
    Chairman Graham. The way I've always supposed this. You're 
never going to get people to work together to reform 
entitlements until you first go through the budget and get 
waste and stupid stuff out. Do you agree with that?
    Hon. Bishop. I totally agree, Senator.
    Chairman Graham. Well, that's going on and I applaud that. 
The list things that the President read last night was pretty 
funny and at the same time obscene what your money's being 
spent on, right?
    Hon. Bishop. Right.
    Chairman Graham. So I applaud all that, but there's some 
things in the process. In the process of finding out what works 
and what doesn't, let's don't kill things that are absolutely 
necessary. The President wants 5 percent of Gross Domestic 
Product (GDP) on Defense. That's what he says. Does that make 
sense to you?
    Hon. Bishop. Well, Senator, if the President says it----
    Chairman Graham. Well, that's what he said. Yeah, I'm not 
trying to pitch against him. I'd like that too. Let's see if we 
can get there. He wants to balance the budget. I know I do too. 
And so about 25 percent of the budget is non-entitlements, non-
interest, and let's give a once over. Defense is in that. 
Eliminating the Department of Education, fine with me, and all 
that good stuff. But there are 83 girls in Oman that we got out 
of Afghanistan that we're supporting, that the money ends out 
in the middle of March.
    Do you think it's in our interest to make sure they don't 
have to go back to Afghanistan?
    Hon. Bishop. Well, Senator, I think I'd have to know the 
rest of the details. You made reference to it in your opening 
comments. I'm not familiar with the story you're talking about. 
Undoubtedly, when you make change, you're going to see some 
things that are dislocated and they may have to be put back.
    Chairman Graham. Well, I want to talk to you about that 
because that doesn't advance the ball at all. Are you familiar 
with PEPFAR.
    Hon. Bishop. I am.
    Chairman Graham. Do you think it's generally been a good 
program?
    Hon. Bishop. As a general proposition, absolutely. I've 
heard some news about PEPFAR in the last couple days and the 
things from which PEPFAR money is going that were stunning to 
me, if true, so I think even that--every program, no matter how 
valuable ought to be looked at very carefully.
    Chairman Graham. 100 percent. Yes, I'm a big fan of PEPFAR. 
The concept of helping people not pass Acquired 
Immunodeficiency Syndrome (AIDS) onto unborn children and all 
that good stuff, but it could be looked at too. Mothers--child 
AIDS transmission has gone down by like 70 percent in the last 
20 years. All that's good stuff, but everything should be 
looked at, so count me in for that, including the Defense 
Department.
    I hope the DOGE people will give the Defense Department a 
good once over. Does that make sense to you?
    Hon. Bishop. It does, Senator, very much.
    Chairman Graham. Now here's the problem I've got. I support 
what you're doing, but I've talked to Secretary Rubio a bunch 
about programs that are now very much in limbo or have actually 
been shutdown that I don't think most Americans would want that 
to happen and he's granted waivers. He has waiver authority; 
are you familiar with that?
    Hon. Bishop. I am, Senator.
    Chairman Graham. When he grants a waiver, the money doesn't 
flow. Do you know what causes that?
    Hon. Bishop. I do not, Mr. Chairman.
    Chairman Graham. Well, I don't either. I mean I'm not 
blaming you. Can we, me and you and Mr. Vought get together and 
try to figure out--the only way this works--you're not going to 
get the American people to do what Ronald Reagan and Tip 
O'Neill did, which is save Social Security by making some 
commonsense adjustments--until they have confidence you've 
really cleaned the underbrush of the government out. In the 
process of doing that, all things are not the same. Does that 
make sense to you?
    Hon. Bishop. It does.
    Chairman Graham. So if you go too far, you're going to lose 
trust in terms of actually cleaning up the place. So this is a 
historic moment. What's happening should've happened a long 
time ago and let's get it right to the point that we can. If we 
have to adjust because we overshot the runway, do it. If you 
need to go around--let's get this right. I really do believe 
you and Mr. Vought are the right two to be able to convey to 
the Congress and to the President what works and what doesn't.
    Most people don't know about this job you two have, but 
it's one of the most important jobs in town. Good luck.
    Hon. Bishop. Well, thank you, Senator.
    Senator Merkley. Thank you very, very much, Mr. Chairman.
    The key point of conversation has been the Impoundment 
Control Act and back when Nixon decided to start impounding 
funds two things happened. One is there were appeals to the 
courts which eventually made it to the Supreme Court and the 
Supreme Court reinforced that you know when a separation of 
powers embodied in our Constitution Congress makes the law. The 
Executive has to follow the law and that means to spend the 
money in the way that Congress has laid out.
    The second thing is that Congress said, but you know what, 
we should create a fast track for a President to undo or 
propose undoing spending that the President considers 
inappropriate called a rescission. That rescission power was 
used in the early years after the 1974 Budget Empower Control 
Act, but not used much since. And you have a law degree. You 
practiced law. Correct?
    Hon. Bishop. That's correct.
    Senator Merkley. You have a fundamental education and an 
understanding of the U.S. Constitution, do you not?
    Hon. Bishop. I do.
    Senator Merkley. Do you understand the importance of law 
being applied as written?
    Hon. Bishop. Certainly.
    Senator Merkley. And so, how do you feel about this 
situation in which funds are being impounded currently which 
the Supreme Court has said is unconstitutional?
    Hon. Bishop. Senator, President Trump ran on Impoundment. 
I've heard Director Vought in his hearings speak about 
Impoundment. I've studied the issue, but I am seeking a 
position--seeking to be confirmed to a position that is not a 
lawyer position. I won't be making the legal determinations for 
OMB or for the Administration in terms of the legal positions 
that it decides to take. I am persuaded, though, that there was 
history in the United States before the 1974 Impoundment 
Control Act.
    Former Senator Harry Truman, as President of the United 
Stated impounded funds to prevent the funding of a squadron of 
strategic aircraft. Ulysses S. Grant exercised Impoundment 
Power. Thomas Jefferson exercised the Impoundment Power, and I 
think Senator, when you dig in, it's a compelling argument that 
there is power in the Executive in the nature of Impoundment. 
Exactly what its contours are I don't know. I won't be deciding 
those things, but I support the President's plan to use 
Impoundment to get federal government spending in line.
    Senator Merkley. Well, sitting behind you is your future 
boss, who very much advocates that he doesn't care what the 
Supreme Court decided before because he disagrees and he thinks 
the President disagrees. He was very honest and upfront about 
that. But in our system of government, we don't get to decide 
the constitutional issue and say individually we disagree with 
the Supreme Court.
    Now if the Supreme Court relitigates this and comes to 
comes to a different conclusion, then there would be the 
traditional power is granted by the Court and I understand that 
that's the plan. But at this point every consideration has been 
that this is illegal and unconstitutional and I'm sorry to hear 
that with your training in the law you're inclined to simply 
say, well, President ran on it.
    He didn't give a lot of speeches about Impoundment, by the 
way, and he didn't give a lot of speeches about the plan to cut 
two trillion dollars from fundamental programs for families to 
give two trillion dollars to tax giveaways to the richest 
Americans. He didn't talk about it last night either, but when 
there's a fundamental question of law and you, as a trained 
lawyer, say, well, I'll just follow whatever the President 
says, that concerns me because we need to have people of 
integrity who are willing to follow the law in key positions 
like this. Are you going to be a person with integrity to 
follow the law?
    Hon. Bishop. Senator, you've put words in my mouth that I 
did not say and you've put words in Director Vought's mouth 
that he did not say, with respect, and I certainly am a person 
of integrity, but it is not a question of not following the 
Supreme Court. For example, you say the Supreme Court has 
decided the constitutional questions of the Impoundment Control 
Act. That's just misinformed.
    Senator Merkley. Oh really? Why don't you inform us all on 
how--given that they've made that decision.
    Hon. Bishop. Well, they didn't, sir. Train v. New York does 
not consider the Impoundment Control Act and it does not 
consider the President's power of Impoundment, neither one.
    Senator Merkley. We'll continue that conversation because 
others disagree with you. I'm not a lawyer myself, so I will 
take this under advisement, but that's certainly my 
understanding from other legal scholars that this has been well 
adjudicated.
    I am concerned also about your flipflopping. You proceeded 
to say in a letter back in 2021 when you were concerned about 
whether or not President Biden was proceeding to not execute 
the law exactly as written. You said this action is an abuse of 
the Executive Branch's authorities and appears in violation of 
the Impoundment Control Act of 1974.
    Here you are a champion of the Impoundment Control Act back 
in 2021 and now you're saying you're not so sure. You just want 
to follow the President and the President doesn't believe that 
he needs to follow it. I'm a little concerned about that 
flipflopping. Can you explain why your opinion has changed so 
dramatically in just a couple years?
    Hon. Bishop. Well, first, it hasn't changed that 
dramatically. In that instance, what was being discussed was 
President Biden's three year by then refusal to spend money 
that the Congress had appropriated for border wall 
construction. General Services Administration (GSA) had earlier 
said at an earlier point that his suspending funding for a 
programmatic review was not in violation of the Impoundment 
Control Act, by the way. And so, it something that continued 
almost to the entire Administration at that point in time.
    And furthermore, as I said, Senator, I've spent time 
studying Train v. New York that you made reference to. I've 
spent time studying the history of Impoundment and the 
presidents who've used it and the circumstances and I'm 
disinclined to believe that the Congress could fundamentally 
alter the balance of authority between the Executive and the 
Congress when they decided to pass a statute in 1974.
    Senator Merkley. My time is up, but I'll just say you were 
very firm in attacking President Biden for Impoundment. Now 
you're very firm in granting license to Impoundment. That seems 
like a massive flipflop to me.
    Chairman Graham. I don't tend to be a legal scholar, but if 
you look at the case, it really doesn't address the issue of 
the scope of the Impoundment Act. You're right about that in my 
view. I think the Court will take that up and it'll probably be 
good for the country. Senator Johnson.

                  STATEMENT OF SENATOR JOHNSON

    Senator Johnson. Thank you, Mr. Chairman.
    Mr. Vought and Mr. Bishop, welcome back to the Committee. I 
look forward to working with you closely in your important 
role. I didn't want to disappoint anybody, so I thought I'd 
bring at least one chart.
    Hon. Bishop. You have some famous charts, Senator.
    Senator Johnson. Again, you realized I've proposed a number 
of pre-pandemic levels of spending. They've all been prepared 
the exact same way. I've taken actual total outlays from 1998 
under Clinton, 2014 under President Obama, and then 2019 under 
President Trump. I've exempted Social Security and Medicare. 
I've used 2025 numbers for those and interest, but all other 
spending I've increased the total outlays by population growth 
and inflation.
    So these are three options ranging from 5.5 trillion up to 
6.5 trillion. It's interesting if President Trump or President 
Biden projected revenue for 2025 at 5.5 trillion. If we use the 
Clinton baseline, we'd have a balanced budget, so it's within 
our grasp if we know how to do it. That's what I want to really 
talk about.
    Yesterday at the Senate lunch for the Republicans I just 
asked the question. Did anybody, any of our colleagues think 
that in 2019 we spent too little? Nobody did. Anybody think it 
wouldn't be a reasonable control to take that spending level 
increased by population and inflation and put that in as a 
baseline. Nobody disagreed. Then I pointed out this year we'll 
spend 7.3 trillion. That baseline is 6.5. It's an almost 
trillion dollar delta, $800 billion. So how do you get there?
    A couple dozen of us Republican senators meet with Elon 
Musk last week and what I thought was noteworthy is we're not 
talking about two or three big items. We're talking about 
thousands and thousands of contracts. You know a few million 
dollars, you know, just unbelievably wasteful and abuse of the 
taxpayer money or the borrowed money that's mortgaging our 
children's future.
    President Trump had some great examples, some embarrassing, 
some outrageous examples last night. So I handed you a variance 
sheet, 17 pages, comparing that baseline to project '25 by 
function and subfunction. I've also got hundreds of pages of 5 
to 6,000 line items of every outlay, again, plussed up for 
population growth and inflation compared to about 2025 within 
the variance. And that's what I'm trying to get across to my 
colleagues who've never been in business the way the private 
sector would do this.
    Line by line, you know, asking the manager to come and say 
we never gave you the permission to increase your budget beyond 
the number of people we're working with or inflation. Explain 
yourself and then basically demand reduce spending to that 
control. How do we do this? Is that the right approach? Because 
what's happening in the House right now, they're starting at 
7.3 trillion. They're looking at a couple of big programs. 
They're getting attacked, so they're saying we can't cut that, 
can't cut that, can't cut that as opposed to, start from a 
baseline that everybody on our side thinks more than 
reasonable.
    I don't think we should be looking at anything over 6.5. 
I'd be starting at 5.5 and probably plussing up for Defense, 
but isn't that the way we need to do this, line-by-line the way 
the private sector would approach outrageous overspending, Mr. 
Bishop?
    Hon. Bishop. Well, Senator, I would say a couple things. 
I've heard you speak of this topic and lay this out in this 
very persuasive way in a number of different forums, as you 
know, public ones and private ones. And first, I would say I 
think the conversation--the point that you are making 
absolutely should be at the forefront of the discussion at all 
times and I'm grateful to you for making it so.
    I have seen it. I think most Americans would wonder why the 
massive growth in the federal government spending at COVID, at 
that event, why would that be completely irreversible? Why 
would we now be on a permanent track at a higher percentage of 
GDP as expenditures in federal government than ever in the 
history of the country? It's untenable and you can look at 
those numbers and you can see that the debt is already out of 
control and it's going in the wrong direction so fast it ought 
to frighten everyone. So your point's well taken.
    I would say also that, of course, in my role as Deputy 
Director I spent a lot of time in Congress articulating my own 
views, but now I am working on behalf of the President to 
implement his policies and there are a lot of things that are 
competing for attention, but I think that one--you make the 
greatest points of anyone I think in Congress about 
consistently focusing on this issue and making sure this point 
is in the conversation. And it certainly has an impact on me. I 
know it does on Director Vought and we'll continue to look 
forward to working with you to see how we can bring the logical 
conclusion to reality.
    Senator Johnson. So Mr. Chairman, one more point is, you 
know, on thing--and we have to figure out how do we implement 
the DOGE exposures. There may be room for Impoundment, but in 
general, we're going to have to codify that and it is going to 
be line-by-line. So again, I want to work with you and the 
Administration to literally go line-by-line and build this 
thing up as opposed to suffering death by a thousand cuts, 
starting a grotesquely unreasonable spending level of $7.3 
trillion, so I look forward to working with you.
    Hon. Bishop. I look forward to joining in the endeavor. 
Thank you, Senator.
    Senator Johnson. Thank you.
    Chairman Graham. Senator Merkley actually had that one 
right, I thought, do a recession bill. Senator Lee.

                    STATEMENT OF SENATOR LEE

    Senator Lee. Thank you, Mr. Chairman. Mr. Bishop, it's 
great to see you. I'm so glad that you're willing to stand for 
this nomination and be considered for confirmation.
    Hon. Bishop. Thank you, Senator.
    Senator Lee. As you note, the administrative state has been 
crushing the American people for some time. This is often 
perceived as a soft exercise of power, but the way it's 
experienced by the American people is anything but soft. You 
know in 2024 alone our administrative agencies promulgated 
enough regulations that together it produced a combined net 
economic impact of about $1.5 trillion. So you add to where the 
federal regulations promulgated prior to 2024 stood, which 
estimates vary wildly, but a lot of people have estimated those 
regulations in effect previous to that time being somewhere in 
the range of maybe 2.5 to $3 trillion.
    We're now looking at a federal regulatory system that 
imposes costs that more or less rival that which we spend on 
federal income tax as an entire country. These are laws made by 
men and women as well educated, well intended, hardworking, 
highly trained as they might be, don't work for the American 
people. They're lawmakers who are never elected.
    Now my copy of the Constitution in Article 1, Section 1 and 
in Article 1, Section 7, makes clear you cannot make a federal 
law unless you follow the formula and the formula goes 
something like this. You got to pass the bill in the House and 
you've got to pass it in the Senate. Most of the time it 
doesn't matter what order, unless you're dealing with a revenue 
bill, but you've got to pass the same text in both Houses and 
then present it to the President, who may sign it, veto it, or 
acquiesce to it.
    At the conclusion of that process, the legislative bill has 
been rung. Then and only then may you make a new federal law or 
change an existing federal law. But the means by which Congress 
has since the late 1930s has been deferring, been delegating 
this lawmaking power. It's completely reversed the equation 
such that the American people are now subject to this byzantine 
labyrinth of federal regulations and it brings to fulfillment a 
warning made by James Madison in Federalist 62, who said, in 
effect, it'll be of little avail to the American people that 
their laws may be written by men of their own choosing if those 
laws be so voluminous, complex, and everchanging that they 
can't be read and understood. Anticipated from one day to the 
next as to what the law actually requires. Only it's much worse 
than James Madison's warning because it's not just that they're 
everchanging, voluminous, and complex such that you can't know 
what's happening. They're not even written by men and women of 
our own choosing.
    Now in my view, this calls out for aggressive reforms, 
including, but not limited to, but definitely including the 
REINS Act, Regulations from the Executive in Need of Scrutiny. 
The REINS Act would require essentially what Article 1, Section 
7 already compels us to do, which is before you create a new 
affirmative legal obligation applicable to the public, 
enforceable on the public at the risk of losing life, liberty, 
or property for failure to comply that you've got to run these 
through the legislative formula prescribed by Article 1, 
Section 7.
    Mr. Bishop, I'd like to know your views on the REINS Act 
and how the White House and Congress can work together on 
regulatory reform more broadly.
    Hon. Bishop. Thank you, Senator, for the question. Anybody 
who hasn't had the experience needs to come to sit with you in 
your office where you see that massive--I guess they call it a 
bookshelf filled floor to ceiling, floor to top with paper that 
represents the regulatory output last year and then see what 
Congress passed as a small stack on top. I'm not sure I've ever 
seen anything that--in fact, it took me by surprise when I met 
with you that it well captures how out of control the 
regulatory states--you know, massive output of law is and yet 
those were regulations.
    I mean on top of that you've got guidance and unofficial 
statements that get out on the websites, all of which can be 
the source of enforcement by those same agencies in which they 
make the law, they act as the judge and jury also for everybody 
out in the society. I guess I'd say a couple things, Senator.
    President Trump has, you know, his own plans to reform the 
regulatory state. He's talked about taking 10 regulations down 
for every 1 that comes along. The Office of Information and 
Regulatory Affairs, OIRA, at OMB will be at the heart of that 
effort and I look forward to participating very much in that. 
As a member of Congress, I was very much in support of the 
REINS Act. In fact, we tried to do something similar in North 
Carolina. We did have a great regulatory reform agenda that was 
very successful in North Carolina, so I know it can be done. I 
think REINS has great merit, but of course what the President's 
priorities are where I'll focus as Deputy Director of OMB.
    Senator Lee. I appreciate that, Mr. Bishop, and I see my 
time's expired. I'll add here just that I too cheered last 
night when President Trump talked about 1 in/10 out.
    That's fantastic. That buys us food for a day or at least 
four years.
    In order to have a sustainable supply of liberty, we need 
legislative reform, permanent structural reform. And in my 
view, the best way to make that happen, maybe the only way to 
make it happen is to attach to a must-pass vehicle. I think the 
most fitting pairing would probably be a debt ceiling bill. I 
believe Congress should not enact legislation suspending or 
increasing the debt ceiling without attaching the REINS Act and 
I hope that you and the White House will support that. Thank 
you, Mr. Chairman.
    Hon. Bishop. Thank you, Senator.
    Chairman Graham. Senator Van Hollen.

                STATEMENT OF SENATOR VAN HOLLEN

    Senator Van Hollen. Thank you, Mr. Chairman.
    Mr. Bishop, it's good to see you. As you know, we only get 
five minutes.
    Hon. Bishop. Yes, of course.
    Senator Van Hollen. Try to keep your answers short.
    I'm just going to ask some direct questions.
    Hon. Bishop. All right.
    Senator Van Hollen. The first one is do you commit, if 
you're confirmed for this position, to comply with any court 
orders directed toward the jurisdiction of the Office of 
Management and Budget?
    Hon. Bishop. Yes, Senator.
    Senator Van Hollen. Good. So now let me talk briefly about 
what Senator Merkley discussed, which is the Impoundment 
Control Act. I think he referenced the letter you earlier 
signed at Government Accountability Office (GAO) asking whether 
or not the Biden Administration had violated the Impoundment 
Control Act. You remember that letter, right?
    Hon. Bishop. I do.
    Senator Van Hollen. And at that time you agreed that the 
Impoundment Control Act was good law, am I right about that?
    Hon. Bishop. Well, Senator, my views were more informed now 
than they were then, but I didn't draft the letter either, but 
I signed a letter to that effect.
    Senator Van Hollen. That's right. And obviously, the 
assumption behind that letter at that time you believed that 
was good law.
    Hon. Bishop. It was a lay opinion, Senator. That's right.
    Senator Van Hollen. So you've changed your opinion since 
then, is that right?
    Hon. Bishop. Well, I've studied it more.
    Senator Van Hollen. It is the law of the land. I mean you 
signed that letter to GAO making that clear. Do you agree that 
until it's overturned by a court that you will comply with the 
Impoundment Control Act, if confirmed?
    Hon. Bishop. Well, Senator, the determinations about how 
the Administration will proceed and the legal strategy or the 
determinations are being made by others than me. I'm not a 
lawyer. I'm not going to be--I'm not a lawyer in the 
Administration or to be a lawyer in the Administration. The 
General Counsel's Office at OMB makes those determinations. 
Director Vought will make decisions in light of their 
determinations.
    Senator Van Hollen. Okay. I would suggest, Mr. Bishop, that 
you were right when you signed that letter a number of years 
ago. And to the Chairman's comments, I would just point out if 
you tear up the Impoundment Control Act, you might as well tear 
up Article 1 and we might as well pack up when it comes to 
using the power of the purse.
    Chairman Graham. If I may, I don't mean----
    Senator Van Hollen. As long as it doesn't come of my time.
    Chairman Graham. Oh yeah, it will not count against you. 
Take all the time you need. Biden said the Impoundment Control 
Act did not require him to build the wall. Do you agree with 
that?
    Senator Van Hollen. I believe the GAO looked at the 
allegation.
    (Simultaneous discussion)
    Senator Van Hollen. No, no, no, GAO is the body that we 
entrust to make these determinations.
    Chairman Graham. Well, I mean okay, but he said the 
Impoundment Control Act did not require him to build the wall 
when Congress told him to do it.
    Senator Van Hollen. Well, GAO found that that was not----
    Chairman Graham. GAO is not the court here.
    Senator Van Hollen. Well, GAO is the body that we, as 
Congress, have--well, they are.
    Chairman Graham. No, they're not. You get two extra 
minutes.
    Senator Van Hollen. Actually, they are if you look at the 
law. They're the ones that are entrusted in bringing actions to 
comply with the Impoundment Control Act, is that right, Mr. 
Bishop?
    Hon. Bishop. No, sir. The GAO is an instrument of Congress, 
so it might set an opinion that binds Congress, but it's not a 
court.
    Senator Van Hollen. No, no--anyway, that's who we empower 
to bring cases on behalf of Congress with respect to compliance 
with the Impoundment Control Act. Let me turn to the issue of 
the firing of probationary employees. You're familiar with the 
fact that a California Federal District Court issued a ruling 
related to this, right?
    Hon. Bishop. Actually, Senator, there are a lot of stories 
about a lot things. I don't know if I've got that one crystal 
clear in my mind, but yes, I'm aware there's----
    Senator Van Hollen. So they just issued a ruling that 
directly relates to this and the Merit System Protection Board 
also ruled in favor of six representative federal employees 
who'd been on probationary status, are you familiar with that?
    Hon. Bishop. I heard about that, yes, sir.
    Senator Van Hollen. All right. And so it's interesting 
because just yesterday, I believe, a spokesperson for Office of 
Personnel Management (OPM) said, ``This change was helped to 
provide clarity in light of a recent court order'' and the 
change was that the Administration conceded that OPM cannot 
fire people who probationary employees, are you familiar with 
that?
    Hon. Bishop. No, I'm not actually, Senator.
    Senator Van Hollen. So these employees were getting these 
notices from OPM and some of Elon Musk's folks to informed them 
that they were being fired. That is not allowable. It has to be 
done by the agencies and so I see that OPM had to clean that 
up. They claimed it was because of some public misinformation, 
but there's no public misinformation when somebody gets a 
directive from OPM.
    You are familiar with the standard, and I think you outline 
it here in this memo, that it's always been up to agencies 
whether to take performance-based actions against probationary 
employees. So you agree that it has to be a performance-based 
reason to fire somebody who's on probationary status, is that 
right?
    Hon. Bishop. I'm sorry, Senator. I'm trying to remember 
what memo you're referring to; is it something that I wrote?
    Senator Van Hollen. No, but this is something that came out 
of OPM that directly relates to the Administration's action.
    Hon. Bishop. Well, I'm not in command of everything that 
OPM has issued and not even in the same agency obviously.
    Senator Van Hollen. Right.
    Hon. Bishop. And I'm just a senior advisor.
    Senator Van Hollen. OMB is sort of the cockpit for the 
entire federal budget, but let me ask you this. Do you know 
what the standard is for firing somebody who's on probationary 
status?
    Hon. Bishop. I do not. I certainly don't profess, for 
example, to be an expert, a legal expert on that subject. A lot 
of people sort think if you're a lawyer you should know all of 
the law. I have not been an expert in federal personnel. I'm 
generally aware of the existence of Title V and so forth.
    Senator Van Hollen. Well, the bottom line is courts are 
finding that these were illegal actions taken by the Musk 
operation and so I appreciate your answer to my very first 
question that if confirmed you will agree to comply with court 
orders. Thank you, Mr. Chairman.
    Hon. Bishop. Yes, Senator. Thank you.
    Chairman Graham. You've got a minute if you want it.
    Senator Van Hollen. That's all right.
    Chairman Graham. Okay.
    Senator Van Hollen. I may come back, but thank you, Mr. 
Chairman.
    Chairman Graham. Okay. Senator Kennedy.

                  STATEMENT OF SENATOR KENNEDY

    Senator Kennedy. Congressman, when moms and dads lie down 
to sleep at night and can't, one of the things they're worried 
about is cost of living, high prices; isn't that true?
    Hon. Bishop. Absolutely, certainly true.
    Senator Kennedy. And those high prices were caused by 
inflation.
    Hon. Bishop. Yes, Senator.
    Senator Kennedy. Am I right?
    Hon. Bishop. That's right.
    Senator Kennedy. And inflation has come down. That's a good 
thing, right?
    Hon. Bishop. It is a good thing, Senator.
    Senator Kennedy. But that just means when the inflation has 
gone from 10 percent to 3 percent that prices are rising less 
quickly. They're still rising, aren't they?
    Hon. Bishop. Yes, Senator.
    Senator Kennedy. That's call disinflation.
    Hon. Bishop. If they fall, that'd be disinflation, yes, 
sir.
    Senator Kennedy. No, if the rate of inflation comes down, 
that's disinflation.
    Hon. Bishop. Oh, I beg your pardon. Okay.
    Senator Kennedy. If prices comes down that's deflation.
    Hon. Bishop. Yes.
    Senator Kennedy. Now most Americans they don't read 
Aristotle every day. They're too busy earning a living. They 
don't know the difference between deflation and disinflation, 
but they sure as hell understand that the high prices have 
remained, don't they?
    Hon. Bishop. Yes, Senator.
    Senator Kennedy. We've got a lot of work to do around here.
    Hon. Bishop. Yes, sir.
    Senator Kennedy. And we need four years to do it and we 
need a cooperative House and Senate to do it.
    Hon. Bishop. I agree, Senator.
    Senator Kennedy. If we don't get these high prices down, 
we're not going to have four years. We're going to have a 
divided Congress. You can write that down and take it home to 
momma.
    Hon. Bishop. Yes, sir.
    Senator Kennedy. This election was about the economy and 
people were still worried about these high prices. Now one way 
to get these high prices down to reduce prices. Reduce prices 
would be to reduce the amount of federal spending; isn't that 
true?
    Hon. Bishop. I think so, Senator.
    Senator Kennedy. Because that's how we got here with the 
massive amount of federal spending that President Biden 
perfected. So if we can reduce the federal budget, we can 
reduce prices.
    Hon. Bishop. Yes, Senator.
    Senator Kennedy. That's one thing you and Mr. Vought can 
do. Number 2, if we deregulate that'll reduce prices, won't it?
    Hon. Bishop. It will, Senator.
    Senator Kennedy. Why is that?
    Hon. Bishop. Because producers of goods and services in the 
economy face less costs, particularly less costs that waste 
money because they're not really accomplishing anything. 
They're just sort of chasing the regulatory wheel.
    Senator Kennedy. Well, hell yeah. Regulations cost the 
American business community two trillion dollars a year. If we 
can cut that in half, they can pass and will pass the savings 
onto the American people.
    Hon. Bishop. Yes, sir.
    Senator Kennedy. Now the third way we can get these high 
prices down, is it not, is to grow out of them.
    Hon. Bishop. Agreed.
    Senator Kennedy. Stimulate the economy.
    Hon. Bishop. Certainly, the President intends to that, 
Senator that's right.
    Senator Kennedy. To raise wages.
    Hon. Bishop. Yes, real wage gains.
    Senator Kennedy. So this idea that we have to go into a 
recession in order to have deflation is not really true, is it?
    Hon. Bishop. Not at all.
    Senator Kennedy. If we cut spending, if we deregulate the 
economy, if we stimulate the economy in a way that helps real 
people--small businesses and large businesses, but most real 
people to increase their wages we can deal with these high 
prices, can't we?
    Hon. Bishop. That's exactly right.
    Senator Kennedy. Well, that's what I hope you gentlemen 
will do.
    Hon. Bishop. Well, we'll need the help of Congress.
    Senator Kennedy. I haven't heard enough about deregulation. 
I mean I know these other issues that we're talking about are 
important, but that's the surest way.
    Hon. Bishop. I can assure you, Senator----
    Senator Kennedy. In the short term, while we're working on 
our reconciliation bill, the surest way is to deregulate and 
reduce the spending.
    Hon. Bishop. I can assure you that is a focus that Director 
Vought is focused on like a laser and the effort is getting 
ready to get underway.
    Senator Kennedy. Yes. Now another question quickly. Do you 
think we ought to be sending government checks to dead people?
    Hon. Bishop. No, Senator, I think that's poor management.
    Senator Kennedy. During the pandemic we sent out $1.4 
billion of checks to dead people, didn't we?
    Hon. Bishop. I don't have the figures, Senator, but I 
wouldn't be surprised by that, given everything that----
    Senator Kennedy. And they were cashed, weren't they?
    Hon. Bishop. They generally get cashed whether they're dead 
or not.
    Senator Kennedy. What does that tell you?
    Hon. Bishop. Somebody's alive.
    Senator Kennedy. Yes. Now Senator Carper and I passed a 
bill. It took us two years to try to stop that. When you die, 
the state sends your name to the Social Security 
Administration. Your name goes on what's called the Death 
Master File.
    Hon. Bishop. Yes, sir.
    Senator Kennedy. I went to Social Security and I said can I 
see the list. They said sure. I said who do you share this 
with. They said nobody. We can't. We don't have statutory 
authority. I said you don't share it with the Do Not Pay folks 
at Treasury? They said nope. It's against the law. Well, rather 
than argue with them, Senator Carper and I passed a bill. But 
believe it or not, to say Social Security share the dead people 
list with the rest of government for God's sakes. Put down the 
bong and share it with them. And believe it or not, we had 
opposition, so we had to agree to a three-year trial period.
    We saved a bunch of money. That three-year trial period is 
up at the end of 2026. I've got another bill with Gary Peters 
to extend it to make it permanent. You guys got any problem 
with that?
    Hon. Bishop. Well, Senator, I cannot speak for the 
President or for Director Vought.
    Senator Kennedy. Oh, go ahead.
    Hon. Bishop. It's hard for me to imagine who would be 
opposed.
    Senator Kennedy. Well, you'd be surprised.
    Hon. Bishop. No, sir, I wouldn't be surprised as it turns 
out, but I still can't imagine who would be opposed.
    Senator Kennedy. Okay. You going to follow the law?
    Hon. Bishop. Absolutely. Absolutely.
    Senator Kennedy. You going to defy court orders?
    Hon. Bishop. No, sir.
    Senator Kennedy. Thank you, Mr. Chairman.
    Chairman Graham. Thank you, Senator. Dead people have a 
very good lobby apparently. So Senator Murray.

                  STATEMENT OF SENATOR MURRAY

    Senator Murray. Well, thank you. Thank you very much,
    Congressman Bishop. I just want to be really clear upfront. 
You may not like it, but our Appropriation bills are not 
optional. They're actually law. You were just asked if you'd 
follow the law. Appropriation bills are law and I expect you 
and the entire Administration to allocate funding as Congress 
intended by law. This is not a theoretical issue. If Congress 
passes a law that specifies that a hospital in Seattle should 
receive some amount of federal funding, I expect that hospital 
to receive every penny.
    In this system of government under the American 
Constitution, Elon Musk, President Trump can't pick winners or 
losers. They don't get to pick which laws they follow or what 
hospitals or schools get funded. They can write a budget. They 
lobby all of us for it. I expect them to do it, but they cannot 
overrule the entire democratically elected Congress and use the 
American people's taxpayer dollars as a giant slush fund.
    Congressman, at a hearing last week, you refused to say 
that you'd follow that law no matter what illegal directive 
you're given. I, as a former preschool teacher, like to keep 
things simple. Congress legislates. We write the bills, 
allocate the funding, after the President signs the bills, he 
faithful executes. So just let me give you another opportunity 
to say you will follow the law.
    Appropriation bills are passed, will you follow the law and 
use the funds as directed?
    Hon. Bishop. Senator, thank you for the question. I've said 
in response to several Senators here today President Trump's 
run on Impoundment. Director Vought's expressed his view that 
impoundment is within the power of the President in certain 
ways.
    Senator Murray. Wait a minute. There's a law that says that 
impoundment is illegal. You won't follow that law.
    Hon. Bishop. I'm aware of the Impoundment Control Act, 
Senator.
    Senator Murray. Right. You just don't agree with that law?
    Hon. Bishop. I believe that is--I join Director Vought's 
view that that's not a constitutional law.
    Senator Murray. You just answered Senator Kennedy that you 
would follow the law, but you're going to pick out one 
exception that you won't follow?
    Hon. Bishop. Well, Senator, you know, the Budget Control 
Act requires a budget process be completed every year. The 
Senate hasn't done that in decades.
    Senator Murray. That's not a law. That is a process here, 
but when we write Appropriations bills.
    Hon. Bishop. It is a law, Senator.
    Senator Murray. Appropriations bills are laws. Correct?
    Hon. Bishop. They are.
    Senator Murray. Signed by the President.
    Hon. Bishop. That's correct.
    Senator Murray. Will you follow those laws or not? Do you 
have a law you disagree with?
    Hon. Bishop. Senator, we'll certainly follow the law. It's 
no more complicated than the question----
    Senator Murray. Yes, I can see you're not going to follow 
that one. Okay. Perhaps you can help me understand something 
else. As I understand it, Elon Musk and DOGE are saying they're 
conducting mass firing to help save taxpayer dollars. Out in 
the Pacific Northwest we have the Bonneville Power 
Administration (BPA). It's actually a self-sustaining agency. 
It provides millions of dollars--power, sorry. Power to 
millions of people in states like mine in the Pacific 
Northwest. It's actually funded by ratepayers, not by 
taxpayers. We don't use a dime of taxpayer money to pay BPA 
salaries. So do you have any idea why Elon Musk thinks firing 
people, which he did at the BPA, will reduce federal spending?
    Hon. Bishop. Senator, I am completely unfamiliar with that 
situation. Be glad to take it back or look into it and be glad 
to make my number available to you.
    Senator Murray. I would appreciate that because firing BPA 
employees saves us zero taxpayer dollars. It is completely 
funded by the users in the Pacific Northwest.
    Hon. Bishop. Thank you, Senator. As I said, I'd be happy to 
take that back and look into it.
    Senator Murray. Okay. I want to talk about Social Security 
for just a minute. Do you think seniors should be able to talk 
to a real person? Elder people when they're trying to get ahold 
of somebody, do you think they should talk to a real person or 
have the possibility to do that?
    Hon. Bishop. Senator, it might seem like common sense to 
me, although I will say there's a somewhat--you know, I'm not a 
spring chicken anymore and a lot of things have moved into a 
direction other than having a live person available for every 
telephone call. I really can't speak to it.
    Senator Murray. Well, can you promise every member here 
that cutting more than 12 percent of the agencies' workforce 
will improve customer service?
    Hon. Bishop. I don't know enough about the Social Security 
Administration's workforce to know that Senator. I think that's 
one of the issues about where we are today is there are lot of 
assumptions like that, that turn out not to be true when 
they're looked at very carefully.
    Senator Murray. I would just have the premise when you cut 
12 percent of the people that there will not be--and, by the 
way, a number of field offices, there won't be people to answer 
people's calls or have them come in and understand really 
challenging situations when a spouse dies or the other many 
things that they deal with. So we'll leave that at that.
    I just want to ask you one last question for the record.
    Do you believe the 2020 election was rigged?
    Hon. Bishop. I join the view Director Vought expressed on 
the point.
    Senator Murray. I'm sorry?
    Hon. Bishop. I join Director Vought's view of that 
question. He said it was rigged in his responses and I join 
that.
    Senator Murray. And you think it's rigged?
    Hon. Bishop. Yes.
    Senator Murray. Thank you.
    Chairman Graham. Senator Moreno. Scott, I apologize.

                   STATEMENT OF SENATOR SCOTT

    Senator Scott. Well, Congressman, I'm glad you're here.
    Hon. Bishop. Thank you.
    Senator Scott. Good luck with your job.
    Hon. Bishop. Great to be here.
    Senator Scott. You know I love it when the Democrats talk 
about following the law. When I was Governor of Florida because 
I wouldn't expand Medicaid, Barack Obama cut a billion dollars 
out of my Medicaid program like that. Not one Democrat said 
that was a problem, not one Democrat. He cut a billion dollars 
and it was a program that went to hospitals that did more 
uncompensated care, a billion dollars gone and didn't come back 
until we got a new president. So congratulations. Why do you 
want to do this and what're you going to get done in your four 
years?
    Hon. Bishop. Thank you, Senator. And if I might real 
quickly to say in response to what you just said, I think there 
are many such examples. If you think about orders that 
President Biden issued in the last Administration that were 
plainly contrary to law. Even after the Supreme Court issued 
opinions on student debt cancellation, for example, he did more 
of it. And I want to make clear because I think there is 
something that needs to be said, which I haven't talked about 
violating the law. I talked about there may be issues about the 
Impoundment Control Act and its constitutionality and what 
exactly the contours are of the historic power to impound and 
that's probably going to--President Trump has made clear that's 
going to be looked at. So that's part of, I think, in answer to 
the question what I hope to do.
    I think what President Trump said last night in a speech--I 
don't think I've ever seen a better State of the Union 
address--but he said there's going to be action. The American 
people are so ready for action and I spent five years in the 
Congress in the House of Representatives ready for action that 
I never saw take place. And I don't even know that it's 
conservative or liberal. It's common sense and it's actual 
change.
    The reason I'm looking forward to this job more than any 
job I've had in my life is because I know Russ Vought. I know 
what the President of the United States intends to do in terms 
of action to see change and I am thrilled, should I be 
confirmed by the Senate, to be part of it.
    Senator Scott. Do you think you can balance the budget?
    Hon. Bishop. Absolutely. I'm certain that can be done,
    Senator.
    Senator Scott. Have you done that in your personal life?
    Hon. Bishop. I certainly have.
    Senator Scott. Gosh, how do you do it?
    Hon. Bishop. It's amazing. My wife is the key to so many 
things.
    Senator Scott. Did you like find out what you're going to 
make and not spend more than that?
    Hon. Bishop. Look for opportunities to save and not pay for 
some things we paid for at one point in time we find not to be 
worthwhile.
    Senator Scott. Do you have a credit card?
    Hon. Bishop. I do.
    Senator Scott. Do you review it to see if it's proper?
    Hon. Bishop. The way the review works in our household is 
that if something's on it that's not supposed to be there, I 
hear about it from the boss.
    Senator Scott. And have you ever like changed your 
telephone plan to get a better deal?
    Hon. Bishop. And that's a constant source of discussion 
internally. I've got the cheapest plan you can imagine,
    Senator. I'd be glad to tell you about it.
    Senator Scott. Yes. So we've seen a 2 percent increase in 
population five years and a 53 percent increase in federal 
spending. How on God's green earth can we live within this?
    Hon. Bishop. Every American who had an opportunity to focus 
on that number would say that's absurd.
    Senator Scott. Yes. So my colleague from Ohio and others 
here we just went through campaigns. I went through my 
reelection and I tell people when they come up here because 
everybody's in my office now asking for money. And here's what 
I tell them. I said, you know what, I'd say, I don't know, I'd 
say a thousand events in the last year, nobody, not one person 
in my state asked me about that program, but you know what they 
did ask me about? Why isn't the border secure and why's the 
cost of living going up? That's all they're asking about. I 
mean the whole campaign that's they--I was at a Jimmy Johns 
restaurant the other day and the lady was just saying, look, I 
moved to Florida because you're the governor. I could get a job 
but she said the cost of living is just skyrocketed. The 
groceries are out of whack.
    So what are some of the things you think that you can get 
done--and by the way, do you think we get inflation under 
control if we don't balance the budget?
    Hon. Bishop. No, sir, I don't think so. And whether we have 
to actually get the balance to get it under control, I think 
you could get inflation under control probably short of that 
target, but it still needs to be done to be sustainable over 
the long term. But I think the plain thing is that President 
Trump has made it clear over and over. In his State of the 
Union last night, he made it clear how relentlessly he is 
focused on that.
    He's laid out strategies that are plausible in terms of, 
for example, unleashing American energy production, lowering 
the cost of energy. You're not only going to reduce the cost of 
every time somebody makes an energy-related transaction, but 
energy goes into everything that is done in the goods and 
services across the economy. That's a businessman's judgment. 
If I can say that to you and Senator Moreno next to you 
thinking about this, Senator Johnson, Senator Ricketts, and I 
think that's so refreshing to the American people to hear, but 
those are the things that are affecting their lives. What 
prevents them from getting to the end of the month successfully 
and so I think that's right, Senator.
    Senator Scott. When I was in business, I read the lines of 
my budget, right? I had 342 hospitals--went through the 
budgets. Surgeons went through the budget. Every manufacturing 
companies went through the budget. When I was governor of 
Florida 4,000 lines of the budget, I went through every line 
every year. They had a written purpose. Do you think we ought 
to do that with the federal government?
    Hon. Bishop. I think there's no substitute for it. It 
requires sort of a preparedness to confront a tedium and work 
through it because it has to be done.
    Senator Scott. And if we can't find a purpose or didn't do 
it, should we just keep doing it because we did it before?
    Hon. Bishop. That one doesn't sell for me, Senator, ever. I 
think we ought to consider everything anew every time.
    Senator Scott. Thank you, Mr. Chairman. Thank you, sir.
    Chairman Graham. Senator Warner.

                  STATEMENT OF SENATOR WARNER

    Senator Warner. Well, thank you, Mr. Chairman.
    Mr. Bishop, it's good to see you. We don't know each other. 
I have a dramatically different view of the President's 
discussion last night. I've never heard frankly one that was 
less bipartisan and less willing to acknowledge ought to be in 
this together. And actually, Senator Scott--and I'll match my 
business credentials against anybody. I balanced a budget. I've 
met a work payroll. I was governor of Virginia and got named 
best managed state and best state for business. And as a matter 
of fact, we even did it in a way where we also got named--
Senator Kaine and I were colleagues and he was governor 
afterwards. We got best state in the country for its public 
education. And we realized you couldn't just balance the budget 
on one side of the ledger.
    And again, I've only got five minutes but I am 
flabbergasted by some of your comments. The last time I had a 
hearing here we had Russell Vought in this chair and your 
willingness to be obsequious to him which I inferred from some 
of your comments, frankly, scares the hell out of me.
    Mr. Vought, one thing he's been remarkable in 40 some odd 
days is terrorize the federal workforce. I know you're a 
lawyer. I was actually a business guy, so I read a balance 
sheet. But by terrorizing your workforce you don't get better 
production. As a matter of fact, you destroy production and the 
haphazardness of the DOGE boys firing people without warning, 
not letting them come back, then realized, oops, we screwed up. 
I think it's kind of the absolutely opposite of any kind of 
solid business credentials.
    Now I will acknowledge some consistency on voting against 
every federal funding bill under the Biden Administration, but 
now you're going to be charged with helping to fund the Trump 
Administration. I don't know whether you're going to vote 
against or encourage your congressional colleagues to vote 
against everything put forward. You also flipflopped on the 
basic notion of whether a nation should default on its debt. I 
mean, again, I know you're a lawyer, I was a business guy, but 
if we default on our nation's debt that is not something the 
markets are going to be willing to reverse on right away.
    And kind of to add insult to injury, yes, you accused Biden 
of illegally withholding federal funds. The Trump 
Administration is doing this at an unprecedented level, yes, 
your peers are willing to go in and simply support those 
policies. I don't get it. I know you're from our neighboring 
state in North Carolina, maybe you've not heard the economic 
disruption that's being caused. I frankly don't even know 
whether the Trump Administration is going honor its commitment 
under disaster relief. Lord knows you guys and we in Virginia 
got hard hit. But I guess in my last two minutes, I want to 
talk about Social Security.
    So we had a 1.6 million Virginians on Social Security 
benefits. Now Mr. Musk, who appears to me to be the actual czar 
of the budget and management or lack thereof, has called Social 
Security the biggest Ponzi scheme of all time. Now I know 
President Trump says he's not going to touch it, but I have no 
confidence that, so I've got a couple, if you don't mind, sir, 
yes/no questions.
    Are you aware that the Social Security Administration has 
currently as fewer staff at this time than any point in the 
last 50 years?
    Hon. Bishop. No, I don't know that, Senator. I'm not 
familiar with the staffing at the Social Security 
Administration.
    Senator Warner. All right. Thank you. Are you aware that 
Social Security and DOGE, and I believe your new boss, Mr. 
Vought, plans to actually fire half of that existing staff, are 
you aware of that?
    Hon. Bishop. I am not aware of a specific plan Senator 
Warner. Okay. Thank you. And you said you and your wife manage 
your budget and I appreciate that. Have you ever made a call to 
a Social Security representative and ever been put on hold or 
waited a long time to get an answer?
    Hon. Bishop. Have I done that?
    Senator Warner. Yes, sir.
    Hon. Bishop. No, in fact, I've had some interactions with 
Social Security Administration and I did not have that 
experience.
    Senator Warner. Okay, so you never had any constituents 
that complained that they got put on hold. You be a remarkable 
district because I----
    Hon. Bishop. I didn't say that.
    Senator Warner. All right, sir. Do you actually think that 
Social Security seniors who rely on those funds ought to get 
them on time?
    Hon. Bishop. Absolutely.
    Senator Warner. Okay, so if we're going to have the lowest 
staffing levels in 50 years, your plan is to cut half that 
staff additionally. I don't know how that's going to get done. 
And my time has run out, Mr. Chairman, but I would just say I 
even get to the questions around concerns when I was Chairman 
of the Intelligence Committee, now Vice Chairman, the damage 
that's being done to our Intelligence and national security 
issues, so Mr. Bishop, I want to try to give all nominees a 
fair shot. I voted for many of Mr. Trump's initial nominees but 
your alignment with Mr. Vought and some of these Musk 
principles really concerns me greatly, sir. So thank you, Mr. 
Chairman. I look forward to hearing the rest of his answers.

                 STATEMENT OF SENATOR RICKETTS

    Senator Ricketts. Great. Well, I am sitting in for Chairman 
Graham and so I get to go next on questions as well, so I'll 
pick it up from there, but I want to thank the Ranking Member 
here and the Chairman for holding this hearing and Mr. Bishop 
for your willingness to serve in this role for our country.
    We had a great discussion when you were in the office last 
week and when Director Vought came before this Committee, we 
talked a lot about the consequences of the Biden 
Administration's flood of federal regulations and the reckless 
spending and I think you've talked a little bit about that.
    Last week I actually joined Elon Musk and a member of my 
colleagues getting an update about what the DOGE has been doing 
and one of the things that he talked about was making sure that 
we were doing what you said a little bit earlier is if we got 
things we don't need we shouldn't pay for them.
    For example, he used the fact that in one of our agencies 
we have 13,000 employees and 3700 software licenses. The 
Senator from Virginia just referenced Social Security, but I 
think Mr. Musk in that meeting said we have 22 million people 
that are on Social Security that are too old to be alive and I 
think that's what the President was highlighting last night in 
his State of the Union address and the fact that we've got 4.6 
million credit cards out there but not that many people work 
for the federal government. All those things leave open the 
opportunity to be able to find ways to do a better job. And in 
fact, it's that kind of business approach and frankly common 
sense that I think is so refreshing about having Elon Musk and 
the DOGE there.
    One of the things we discussed was Lean Six Sigma, which is 
what I implemented in the State of Nebraska and it's a process 
of proven methodology. We discussed about how you could 
actually have fewer people and do a better job providing 
services because you leverage better process and better 
technology.
    That's what we did to be able to reduce about--we did about 
a thousand projects, saved about 900,000 hours of our 
teammate's time. We cut $100 million in hard savings that way. 
And now a part of the DOGE caucus, I'm excited to bring some of 
those processed improvement ideas to how we run the federal 
government. The bottom line is this, we need to make sure that 
we're doing a better job providing services. We're doing a more 
effective and that we're increasing efficiency and saving 
taxpayers' dollars to get at that goal that President Trump 
played out last night of balancing the budget, which is, you 
pointed out earlier, very, very important that we get to a 
balanced budget. It's not sustainable what we're continuing to 
do. When your interest payments are more than what you spend on 
national defense, you've got a problem. We need to acknowledge 
that and we need to address it.
    Elon Musk in our meeting said he wants to cut a trillion 
dollars out of the federal budget on a run rate fiscal year 
2026. So I look forward to continuing to work with Elon Musk 
and President Trump and the Senate DOGE caucus and you, Mr. 
Bishop, to replicate what we did in Nebraska at the federal 
level.
    So Mr. Bishop, are you committed to increasing government 
efficiency and saving American taxpayer money?
    Hon. Bishop. I certainly am, Senator.
    Senator Ricketts. Great. That was an easy question.
    Hon. Bishop. It was easy.
    Senator Ricketts. All right. Good. Will you commit to work 
with me on bringing cost improvement methodologies like the one 
I described with you, the Lean Six Sigma to the federal 
government so we can improve our services while keeping our 
cost down?
    Hon. Bishop. Yes, Senator. And in our meeting, I was 
intrigued by the Lean Six Sigma idea. And one of the things 
that I could say quickly is that, you know, you hear a lot of 
Ad Hominem attacks on Elon Musk, but people rarely want to 
engage with the merit of what he's actually saying, what makes 
sense. And by the same token, what Lean Six Sigma recognizes is 
that you're actually empowering employees when you elevate them 
to make process improvement recommendations and that's exactly 
what--you know, there's a notion that they're trying to set up 
an antagonism between Elon Musk and employees, but what Musk 
has done in his businesses, if you read his biography, is he 
has shown that by being ready to make significant change, you 
actually bring out the superlative employment or performance 
out of people and they actually can improve things beyond that 
you might expect by just adding numbers and I think it's a 
similar concept.
    Senator Ricketts. Yes, you're actually right there, Mr. 
Bishop. At the state of Nebraska, Lean Six Sigma engages 
frontline people in making their jobs better because they see 
the waste, the number of steps that we try to cut out. They see 
that duplication and wonder why we do it. They don't feel 
empowered to change it. Lean Six Sigma actually gives them the 
opportunity to be able to change those processes that not only 
do a better job providing services, keep our costs down, but 
actually make their jobs easier as well.
    Quickly, as I'm running out time here as well, when 
Director Vought was here I asked him about his commitment to 
helping ensure the timely issuance of Renewal Volume 
Obligations or RVOs. The biofuels industry is very important to 
Nebraska's farmers. It's our number one industry in the State 
of Nebraska and of course to the energy industry as well. The 
2026 RVOs were obligated to be filed by November 1st, 2024, but 
will not be filed until December 2025, so a year late.
    Timely RVOs are critical, not only because it's the law, 
because our nation's farmers rely on ROVs to inform planting 
decisions and of course, as you know, businesses want 
certainty. So Mr. Bishop, will you make the same commitment to 
me today to help expedite this process and ensure the timely 
issuance of RVOs?
    Hon. Bishop. Yes, Senator. Director Vought makes clear that 
he wants to move processes on time and that's the discipline he 
brings, and so I can't speak with great specificity to that 
particular situation, don't have the knowledge of it yet, but 
certainly look forward to working with you and with Director 
Vought to accomplish that objective.
    Senator Ricketts. Great. Thank you, Mr. Bishop, and Mr. 
Padilla.

                  STATEMENT OF SENATOR PADILLA

    Senator Padilla. Thank you, Mr. Chair.
    Colleagues, I know I'm not alone in saying that it's 
extremely unfortunate where we find ourselves today. President 
Trump has made clear that the OMB's sole mission, at least as 
he wishes it under his Administration, is to cut programs, the 
very programs that so many Americans rely on in order to pay 
for another massive round of tax cuts for the wealthiest 
Americans.
    In fact, during his address to Congress just last night, he 
doubled down on DOGE's wildly unpopular agenda of chaos and 
corruption. Proudly listing the ways he has and will continue 
to devastate communities. And today we're asked to consider the 
next nominee preparing to further eliminate funding and jobs 
from our constituents.
    Mr. Bishop, I'd like for you to speak to the Californians 
that I represent for a minute here. I want them to hear how 
you'll justify ripping away important services and programs 
while raising the cost of everything. That's the impact that 
we're seeing from this Administration. My constituents deserve 
to know exactly who to thank for these reckless cuts.
    You know in the last six weeks it's all of the time that 
it's taken for President Trump and the Office of Management and 
Budget to wreak havoc across critical government programs. 
During your confirmation hearing in the Senate Homeland 
Security and Government Affairs Committee last week, I heard 
you insist multiple times that President Trump's firing of 
civil servants was not indiscriminate; is that correct?
    Hon. Bishop. That's correct and I continue to hold that----
    Senator Padilla. So is it not indiscriminate or was it 
intentional when President Trump fired scientists fighting the 
Bird Flu outbreak while the cost of eggs continues to soar.
    Hon. Bishop. We'd have to look at the details of that, 
Senator. I'm not aware of the specific point you're making.
    Senator Padilla. You're a smart man. You're a smart man. I 
know you've seen the details. Was it indiscriminate or 
intentional when President Trump fired military veterans 
operating the Veterans Crisis Line?
    Hon. Bishop. I'd have to look at the details of that, 
Senator. I don't--as I said----
    Senator Padilla. Was it not indiscriminate or was it 
intentional when President Trump fired thousands of seasonal 
employees at the National Park Service?
    Hon. Bishop. Yes, I do not think that--and the dismissals 
that have occurred are indiscriminate.
    Senator Padilla. I'm asking these questions because you 
seem to be applauding Elon Musk's efforts and this DOGE 
strategy and chaos.
    Hon. Bishop. I certainly am.
    Senate Padilla. So was it not indiscriminate or was it 
intentional when President Trump fired thousands of nuclear 
weapons safety and security workers at the National Nuclear 
Security Administration?
    Hon. Bishop. We'd have to look into the details of that, 
Senator. I'd be glad to do that.
    Senator Padilla. All this is just to disappoint and to make 
matters worse in so many areas of these indiscriminate firings. 
They have had to scramble to hire them back shortly after they 
realized their colossal error. And I could go on and on with 
additional examples but let's be clear. This is not a one-time 
adjustment as Mr. Bishop has characterized it. So here's the 
actual real question and I'm interested in your response.
    What corrective measures has OMB taken to undo and limit 
indiscriminate firings of federal employees by an unelected 
bureaucrat?
    Hon. Bishop. I don't think any of the premise of the 
question is accurate, Senator, but of course, OMB is not the 
agency within the Executive Office of the President that deals 
with personnel. That's a different office and moreover, I'm not 
yet serving as Deputy Director and do not have management 
responsibility nor am I aware of some of the details that 
you've made reference to, so I can't speak to the question.
    Senator Padilla. OMB's involvement, Russell Vought's 
involvement, the Director now, will be evidence to the contrary 
of direct involvement in those personnel decisions. Maybe let 
me end with this since I referenced Director Vought. When he 
was before this Committee, one of the questions I asked is if 
he stood by his previous statements of a mission, a goal, an 
agenda to put federal employees into trauma and there's example 
after example of exactly that happening, given the activity of 
the last six weeks and especially since Mr. Vought was 
confirmed. Is that what you're signing up for, to help 
facilitate that, to help further that, putting federal 
employees into trauma?
    Hon. Bishop. You know, Senator, with that comment in one of 
his writings that's been--or one of his speeches that has been 
taken out of context.
    Senator Padilla. It's pretty clear and direct.
    Hon. Bishop. No, it really--it's been used in a misleading 
way. What he means is that federal employees--that the American 
people need federal employees to perform. If federal employees 
themselves, I'm certain----
    Senator Padilla. How do they perform when they're in trauma 
or traumatized by their employer?
    Hon. Bishop. Yes, well, I think that the--again, the answer 
is that federal employees--there must be change in the 
workplace. Federal employees were making the comment that they 
see underperformers continuously among their colleagues that 
they cannot see--the processes will not allow to be removed. 
Those were federal employees. I've seen the way Russ Vought 
works with the people at OMB, the career officials there. He 
has extraordinary respect for their skill but he expects them 
to perform and they do.
    Senator Padilla. But don't mistake their trauma for 
respect. Thank you, Mr. Chair.
    Chairman Graham. Who's up?

                  STATEMENT OF SENATOR MORENO

    Senator Moreno. Moreno.
    Chairman Graham. You're up.
    Senator Moreno. We had a little shuffle. Thank you, Mr. 
Bishop, for agreeing to serve your country again. I think the 
American people appreciate your willingness to put yourself 
into the battlefield.
    I want to ask you. You've been around--how long have you 
been around government? I've been around government for eight 
entire weeks. How about you?
    Hon. Bishop. Senator, a little longer than that but I too 
think of myself as a private sector career person. I spent 30 
years practicing law in a small firm serving people whose lives 
were on the line, frankly, in commercial matters that, you 
know, might be their business ownership or something that was--
and so----
    Senator Moreno. But how long as an elected official?
    Hon. Bishop. So as an elected official, I've been about 10 
years.
    Senator Moreno. Ten years. So in that time, especially your 
time here in Congress, have you ever seen an appetite to 
actually reduce the size and scale of government, like a really 
meaningful effort to make that happen?
    Hon. Bishop. You know, Senator, it has been a constant 
presence. I've seen a lot of really great people who've pursued 
the objective and yet it doesn't ever seem to come to pass. You 
would have to conclude that there are a lot of people who are 
not doing that.
    Senator Moreno. And when you were in the private sector, 
did you ever run into organization that didn't fire anybody? 
Like did you ever run into a company that said, you know, we 
haven't fired a human being in 50 years or is it more natural 
that you have to constantly evaluate your workforce and say 
this group of people just isn't getting the job done. Maybe 
they didn't have the right training, maybe they were the bad 
hire, whatever reason, but I've found in my private sector 
experience that when you do that, when you reduce and get rid 
of and eliminate poor performers the whole enterprise rises. 
Did you find that?
    Hon. Bishop. I think that's exactly right, Senator. And 
it's never a pleasant task perhaps or one we'd like to avoid, 
but it's one of the tasks that's necessary in order to perform.
    Senator Moreno. And just to clarify some misinformation 
that's out there online, does Elon Musk personally have the 
authority to fire anybody in the United States Government?
    Hon. Bishop. That is not my understanding. I will say I'm 
not involved with the DOGE effort directly yet and in any way, 
but everything that I've understood about it and followed is 
that he does not exercise that power. Correct.
    Senator Moreno. That's in the job of the people who 
actually do that.
    Hon. Bishop. That's right.
    Senator Moreno. But he could certainly recommend. So for 
example, like I get a lot of calls from constituents. So if 
somebody's a person who works for the Veterans Affairs (VA) and 
their jobs is to greet veterans at the door, make sure that 
they got the resource they need, we look at it and say that's a 
good job, right? We should have somebody there greeting the 
veterans, making certain they know what their needs are. If 
that person lives five hours away and never shows up to the 
actual VA, would you think that that's a job that should be 
eliminated?
    Hon. Bishop. That ought to be looked at pretty seriously.
    Senator Moreno. So what if they're a really nice person? 
What if they're a really nice guy?
    Hon. Bishop. Even then.
    Senator Moreno. What are they're a veteran themselves and 
still live five hours away and never show up for work, should 
we just keep that person on?
    Hon. Bishop. That's the kind of thing that doesn't make any 
sense, Senator, and the American people are ready for something 
to be done about it.
    Senator Moreno. And if you have a company, for example, and 
we're going to get to the bottom of it in Homeland Security and 
Government Affairs Committee (HSGAC), but if you have companies 
that have sales reps that call on the government and yet allow 
something like what's happening at Small Business 
Administration (SBA) with 37,000 software licenses for 13,000 
employees, does that seem normal to you?
    Hon. Bishop. That would never happen in a private business 
where you're trying to make ends meet, Senator.
    Senator Moreno. I mean I would just urge my Democratic 
colleagues. I plead with them argue with us on things that 
actually are common sense and reasonable, but to argue the 
counterpoint that we should absolutely not root out waste, 
fraud, and abuse and the counterargument would be, oh, we'll 
all for rooting out waste, fraud, and abuse. I've been here 
eight weeks. They've been here centuries combined, centuries, 
like literally centuries combined and it's never been done. So 
maybe sit this one out and allow this effort to go forward and 
not defend insanity like what we're seeing.
    What the DOGE efforts is being done--I want to say how 
history's going to judge this moment. You have the world's most 
successful entrepreneur, a guy who has zero reason even to go 
to work. He could literally point anything on this earth and 
say I'll take it. I want to take that 500-foot yacht and go 
sail away. He's sleeping at the Executive Office Building, 
going through line-by-line of the federal budget and 
recommending things like that to be cut, 4.7 million credit 
cards out in the hands of government workers.
    I ran a company of 1100 employees, so a minuscule 
comparison. I had five corporate credit cards and I had anxiety 
over all five of them.
    Hon. Bishop. Right.
    Senator Moreno. How do you defend that? Like why not be on 
the side where you say this makes sense. Like we got this 
incredible entrepreneur, a generational talent, the Thomas 
Edison of our time, and he's willing to serve our country, to 
help us. The guy who you once loved. I mean the left loved Elon 
Musk and now they hate him. This is a subject of a Taylor Swift 
breakup song. I've never seen anything like it. But you know I 
want healthy competition from the other side. I think we should 
have a healthy exchange of debate and ideas, but watching them 
humiliate themselves last night at the State of the Union 
address was just too much. You can't applaud for a 13-year-old 
Black kid who has brain cancer? Is this where we're at, Mr. 
Chairman, were we're sitting here as a body that's supposed to 
be deliberative body of the world and instead we can't even get 
them to applaud for a 13-year-old kid. We can't get them to say 
rooting out waste, fraud, and abuse is a good thing.
    I urge my Democratic colleagues don't be like that team 
that played the University of Miami and got beaten 97 to 0. We 
need a healthy, vibrate Democrat party to challenge us, but 
challenge on the things that makes sense and don't put out 
misinformation like we're going to go out there and randomly 
cut 50 percent of Medicaid. Those messages on TV affect real 
people, real people who think, my God, if this happens I don't 
know what I'm going to do. That's not what we're doing. Attack 
us when you think we're wrong on real information.
    My time is way expired. I used my minute and a half it took 
me to get to my chair, but thank you, Mr. Bishop for serving. I 
look forward to you serving with Director Vought and it was 
great to see him here today and I yield the negative amount to 
my time back to you, Mr. Chairman.
    Chairman Graham. Thank you. Senator Lujan.

                   STATEMENT OF SENATOR LUJAN

    Senator Lujan. Thank you, Mr. Chairman. I'm going to accept 
the challenge of my colleague. I'm going to read you a note, 
Representative Bishop, from a constituent that was fired.
    I am a Federal Bureau of Investigation (FBI) Victims 
Specialist, a civil servant, a career government employee. I am 
there when your loved one is killed by an actual shooter, when 
your child is sexually exploited online, when your family 
member is kidnapped and held for ransom. When your mother, 
sister, daughter is the victim of interstate domestic violence 
or stalking, when the federal agent is injured or killed in the 
line of duty, when your elderly parent is defrauded of their 
life savings, when your child is kidnapped by their other 
parent, when you or someone you love is victimized in so many 
ways. I am not waste, fraud, and abuse. I am not the enemy. I 
am not expendable.
    For more than 22 years, it has been my greatest honor to be 
with people in their darkest hour to bring light into the 
darkness of the cost of my own wellbeing. I do not deserve to 
be forced out under fear or duress or discarded. For if I am, 
you and those you love will have to walk in that darkness 
alone.
    She continues, there are so many of us throughout the 
United States with stories just like this. Examples of how 
they've responded to crime victims. I agree, let's root out 
waste, fraud, and abuse but we should both agree that when 
there's a victim of a sexual crime or someone from across the 
border that is going to kill someone or do something to them, 
they don't deserve to be fired. That's the nonsense going on 
here.
    I accept this responsibility but I'll tell you what, I'm 
not sitting this one out, not on behalf of my constituents. 
There's a better way for us to do these things. You know, 
Representative Bishop, you served at a time in the House of 
Representatives where there was a policy that wasn't in place 
and it's because Republicans got rid of it but Democrats never 
put it back in place. I hope this is something we could 
actually agree on. I know Senator Graham supported this once 
upon a time as well. He used to talk about this in a way that 
would convince more people to do it.
    Under President Clinton, there was a balanced budget. There 
was something called PayGo and Congress restrained itself. In 
the same way that you described balancing your checkbook, if 
Congress moved a piece of legislation that cost money they had 
to either cut or they had to create revenue. It led us to 
balance budgets. I believe Congress needs to bring this policy 
back in place so everyone can restrain themselves and I think 
things will be better. I'll let that sit.
    As Deputy Secretary of the Office of Management and Budget, 
Representative, it seems like you'll be working in lock step 
with Elon Musk and DOGE. I appreciate the conversations that 
we've had on both sides of the aisle, speaking about what Elon 
Musk and others are doing here. Now over the weekend, Elon Musk 
said something. I think it was brought up by one of my 
colleagues. He said Social Security is the biggest Ponzi scheme 
of all time. Do you believe that Social Security is a Ponzi 
scheme?
    Hon. Bishop. It really isn't my place--what I'm doing is 
sitting to be the Deputy Director of OMB is to implement 
President Trump's policies. I really am not in a position to 
comment on every comment that Elon Musk makes but I know that 
President Trump has said he's not touching Social Security or 
Medicare. He's going to ensure those benefits and that is the 
policy that I'm going to be seeking to work with Director 
Vought to implement.
    Senator Lujan. President Trump says to do this, but Elon 
Musk says to do something else. He's not just someone. Elon 
Musk was described as President Trump last night at the address 
to the American people as being in charge. There's been a lot 
of questions over the last eight weeks if he is in charge or 
not, but Elon Musk is calling the shots right now.
    President Trump's going to Daytona, Super Bowl, golfing, 
doing some good things. I believe in finding balance in your 
life. I had a stroke three years ago. Thank God I got better. I 
believe in finding that balance, but I think that the President 
is able to do those things because the other president is 
actually calling the shots. So when Elon Musk is passing things 
down to Director Vought and to others, some of which were 
actually documented and these ideas came from Director Vought, 
which are part of Project 2025 and you have someone that's 
calling the shots firing people across the country, cutting 
budgets, cutting programs, putting people on the chopping block 
using a chainsaw as a tool, who says Social Security is a Ponzi 
scheme. I think that requires us just to take notice. That's 
all I'm saying.
    Your responsibility, sir, as you know is going to be making 
decisions with Director Vought to the President about these 
budgets. You said you want to get to a balanced budget. That's 
going to require cuts. This notion that Medicaid and Medicare 
are not on the chopping block I would just ask voters--
Democrats, Republicans, Independent, (unintelligible). Go look 
at the votes that were cased in the House of Representatives 
last week, read the document, go back and read the document 
that Speaker Paul Ryan put together when he was Speaker of the 
House, 50-page document that described going after this 
program.
    Go back when Paul Ryan was the Chairman of the Ways and 
Means Committee and went after that program. Go back and look 
in 2017 when Republicans were trying to eliminate all aspects 
of Medicaid, eliminating Affordable Care Act, and it took John 
McCain coming to the floor, and may he rest in peace, the great 
hero that he is and said, no, fighting brain cancer.
    This is not new. It's not some secret. These are the facts. 
Go look them up. I invite that and I challenge my colleagues. 
Let's come up with a factsheet that we get back to a place 
where Congress once deliberated. Here are the facts. Let's 
agree and disagree based on the facts that are in front of us. 
That doesn't exist anymore. We need to get back to those times. 
So, Representative Bishop, it's good to see you again.
    Hon. Bishop. Thank you, sir.
    Senator Lujan. We didn't vote the same a lot, but I 
appreciate you being here and stepping up and I pray for you. I 
pray for the President because we've got to do better for the 
American people. And I'll close where I started, I'm not 
sitting this one out. I'm going to stand up and fight for my 
constituents. I yield back.
    Hon. Bishop. Thank you, Senator.
    Chairman Graham. Thank you. Senator Merkley has a couple of 
questions and I believe we'll be done.
    Senator Merkley. Well, thank you so much.
    Congressman, when you were in the House of Representatives, 
you were a fierce opponent of raising the debt ceiling. Are you 
now planning to encourage the House--the House has put raising 
the debt ceiling into their plan on the House side by four 
trillion dollars. Do you now support raising the debt ceiling?
    Hon. Bishop. Well, Senator, the premise was not complete. I 
was an opponent of raising the debt ceiling without reforms to 
spending that would change the fiscal path, but the really 
significant thing in what I'm acutely aware of, as I sit here 
as a nominee of the President, is that I'm not being nominated 
to serve my own views or interests. I'm being nominated to 
implement the policies that President Trump wishes to have 
implemented. He certainly has different ideas than me precisely 
about the debt ceiling and how that should be administered and 
so forth, but I'm going to be administering--I support and I'm 
going to be administering President Trump's or implementing 
President Trump's priorities.
    Senator Merkley. Let's clear up a couple of points that 
have come up in this hearing. One is I noted that the Supreme 
Court had weighed in about the illegality and 
unconstitutionality of Impoundments. You then noted that the 
Supreme Court had not ruled on the Impoundment Control Act. 
Both you and I were both right. That is the summary of Train v. 
The State of New York. The Supreme Court unanimously affirmed 
that presidents do not have the unilateral power to impound 
enacted funding.
    But the ruling wasn't on the Budget Control Act. It was on 
the constitutionality of impoundments, impoundments that Nixon 
had done, so I wanted to clear up that point.
    And I've already asked you if you would follow the 
constitutional ruling of the Court and you made the point, 
well, they didn't rule on the impoundments, and that's the 
point I want to emphasize, and they said that they're 
unconstitutional. So I hope when you go away from here you'll 
have a moment when you go, hmm, am I going to take an oath to 
President Trump or Russell Vought or am I going to honor the 
Constitution because that is the challenge of you as a public 
servant and in our republic you take an oath to the 
Constitution, not to an individual.
    The second point I want to make is there's been a lot of 
conversation here about the plan for a balanced budget. 
Actually, the President's plan as put forward by the House 
increases the deficits that total up to an additional 2.5 
trillion in additional debt on top of what was already 
forecast. So increasing the deficits and increasing the debt. 
There was a lot happy talk about a balanced budget, but that is 
a big lie. The plan is to increase the deficits by 2.5 trillion 
of our total debt over the 10 years.
    The third point I'm concerned about is in your previous 
testimony before another committee. Ranking Member Peters 
asked, do you know about any federal grant or loan programs 
that are frozen and you said, ``I am unaware of any funds being 
frozen.'' Well, some of the headlines in the news were things 
like this. Climate Environmental Justice Program stalled by 
Trump freeze despite court orders and Trump team finds loophole 
defies spirit of court orders blocking spending freezes.
    Trump Administration there's another headline, Associated 
Press (AP) headline, flaunting an Order temporarily lift a 
freeze on foreign aid. Another headline, Emergency food, 
Tuberculosis (TB) test, Human Immunodeficiency Viruses (HIV) 
drugs, vital health aid remains frozen. Another, Trump 
Administration stalls scientific research despite court ruling. 
And yet, you testified you were unaware that any funds had been 
frozen. Now you took an oath to tell the truth right before 
this Committee when this hearing started. Are you telling me 
you never heard of any story about funds being frozen as you 
testified last week?
    Hon. Bishop. Senator, I first of all deeply resent the 
assignation that something that I said was not true in the 
committee to which I testified.
    Senator Merkley. This is your chance to clear it up right 
now.
    Hon. Bishop. I'm happy to do that. I certainly am reading 
the same newspapers that you are. The question was about--as I 
recall, was about my personal involvement in something in the 
course of serving as senior advisor at OMB. And as you know, 
Senator, until I'm confirmed as Deputy Director, it would be 
inappropriate for me to exercise the authorities of that office 
and I have not done so. So I have not been involved in any 
decisions or actions by OMB to manage spending or to cease 
spending in any way and that's what the testimony was about. 
And you may count on me always to be truthful.
    Senator Merkley. This is a great chance to clarify that 
because I think you maybe didn't answer the question Peters 
asked because he asked, and I quote, ``Do you know of any 
federal grant and loan funds are still frozen.'' And you said, 
``I am unaware of any funds being frozen.'' Those are direct 
quotes. I hear you saying that that's not the context in which 
you meant. That you are aware that funds have been frozen.
    Hon. Bishop. Senator, you said you're a lawyer, I think, so 
you know----
    Senator Merkley. I actually said I'm not a lawyer and I'm 
thankful for it.
    Hon. Bishop. Oh, you're not a lawyer. Then it might escape 
that if someone's asking me in testimony about something for me 
to speak I'm speaking about my personal knowledge. I can talk 
to you all day about things that are in the media and whether--
and if you want to know whether I'm aware of something that's 
in the media, I'm glad to talk about that, but the questions 
were what about I knew, my personal knowledge.
    Senator Merkley. All right. I'm going to try to help you 
help out here, try to give you an opportunity to clear that up 
since your statement that I am unaware of any funds being 
frozen, you are clarifying that based on your personal 
experience and service you were unaware and we'll just accept 
that for the record. Because I'm glad you are aware of it and I 
hope that in the context of the challenge of the number of 
court ruling saying that these actions are illegal and the 
Trump team has been told you need to reverse what you've done. 
My colleague mentioned in the context of Agency for 
International Development (AID) programs that many of them do 
important work and I don't mean to put words in your mouth, but 
essentially, I think we've all had a lot of support for some of 
the programs affecting disease around the world.
    Hon. Bishop. I agree.
    Senator Merkley. We don't want Ebola coming back here on 
the airplane and we also see it as a vision of helping people 
around the world thrive, which gives us a lot of soft power. So 
several of us on both sides of aisle have been concerned about 
the difficulty of getting the funds moving again, even after 
the court said it should be unfrozen. I hope in your work at 
OMB you will help in whatever part of the Administration where 
the gears need to turn a little faster to follow the court 
orders so that you'll be helpful in doing so.
    Hon. Bishop. I think that's certainly a central function of 
the job, Senator. I'd be glad for you to have my cell number 
and to be in touch with anyone from here or around your staff 
at any time to see to it we can solve problems that have 
cropped up.
    Senator Merkley. All right. We're going to take you up on 
that, I'm sure. You may be blocking my number very soon, but I 
certainly do feel like we need to advocate for when the court 
says unfreeze the funds they actually get unfrozen.
    Chairman Graham. Senator Whitehouse.

                STATEMENT OF SENATOR WHITEHOUSE

    Senator Whitehouse. Thank you, Chairman.
    Mr. Bishop, have you discussed with anyone at OMB plans for 
firings or freezes?
    Hon. Bishop. Senator, it would be inappropriate for me to 
talk about the details of deliberative processes at OMB. I will 
say to you, Senator, as I've said otherwise, I'm serving as a 
senior advisor now. I'm not exercising management authority as 
though confirmed.
    Senator Whitehouse. So you have had those discussions and 
you assert that the content of them is protected by 
deliberative process.
    Hon. Bishop. I'm not saying that I have had such 
conversations, Senator. I'm simply saying it would be 
inappropriate for me to speak to the details of deliberative 
processes at OMB.
    Senator Whitehouse. Well, why would you refrain from giving 
me the details of the deliberative process if you weren't a 
part of it? The simple answer then being, no, I have not had 
those discussions.
    Hon. Bishop. Well, if that were true, that would still be 
an indication of what processes are at OMB and my role----
    Senator Whitehouse. That is actually not true, That's 
actually not the way the law works. You can assert a privilege 
as to the substance, but as to whether or not you've been 
involved in conversations that is not protected by the 
deliberative process privilege.
    Hon. Bishop. Senator.
    Senator Whitehouse. And are you actually asserting the 
deliberative process privilege here?
    Hon. Bishop. I am not asserting a privilege, Senator. I'm 
simply saying there's an accommodation process and people who 
come up to the Hill don't talk about the details of internal 
deliberation.
    Senator Whitehouse. And my question was have you discussed, 
not what are the details. Will you answer that question?
    Hon. Bishop. I'm sorry. Have I discussed----
    Senator Whitehouse. Have you discussed with people at OMB 
the plans for firing and freezes?
    Hon. Bishop. No, Senator, I have not had discussions of 
that sort.
    Senator Whitehouse. Okay. How about with respect to plans 
for taking advantage of a long-term continuing resolution?
    Hon. Bishop. Senator, I'm trying to recall. I don't know if 
there's been a specific discussion or not, but again, I think 
that's the reason you don't sit and try to give out details of 
the internal deliberations at OMB.
    Senator Whitehouse. Which is why I'm not asking for the 
details, although I believe I'm entitled to ask for the 
details, but that was not my question. So my question was 
simply have you had discussions on that topic.
    Hon. Bishop. About long-term continuing resolutions?
    Senator Whitehouse. Planning for long-term continuing 
resolution and how to take advantage of it?
    Hon. Bishop. Senator, I do not think so.
    Senator Whitehouse. All right. And how about plans in the 
event of a government shutdown?
    Hon. Bishop. Senator, I do not think so.
    Senator Whitehouse. Alrighty. What role, if any, have you 
had in----
    Chairman Graham. Can I ask a question with that? Do you 
support a government shutdown?
    Hon. Bishop. I don't think we should have a government 
shutdown, Senator. I think that'd be a bad idea. The President 
thinks it would be a bad idea, which is more important than 
what I think.
    Senator Whitehouse. Well, I have my doubts about that, to 
tell you the truth, but we'll see. I've got a pretty strong 
impression that Mr. Vought think that we should have a 
government shutdown and he would relish the opportunity that it 
provided him.
    Project 2025, have you had any role dealing with Project 
2025 or Heritage while it was running Project 2025?
    Hon. Bishop. Well, to Senator Merkley's point, I certainly 
read and heard a lot about Project 2025 in the media, Senator. 
I've had no personal involvement with Project 2025.
    Senator Whitehouse. Okay, that's good to hear. Are you 
aware of any ongoing Administration strategy to defy court 
orders regarding the freezes by refusing to give direct answers 
or refusing to answer phone calls or even suggesting that the 
funding has been freed up while at the same time not releasing 
the funds?
    Hon. Bishop. No, Senator.
    Senator Whitehouse. Okay, that seems to be the strategy 
we're seeing. I call it the fog bank strategy where everybody 
who's under a court order to comply with the order saying that 
there shouldn't be a freeze, refuses to actually comply with 
the court order and unfreeze the money, but when you try to pin 
them down on it, emails not answered, calls not returned, vague 
answers, general senses that, you know, don't worry. We'll get 
there or even actual, yes, the funding is clear and then the 
funding is not cleared. It's like this, you know, somebody in 
the room at the agencies who's saying no, no, no, no, the 
funding won't go out even though everybody else is saying that 
it's cleared to go or that we're ready to obey court orders.
    Just in terms of conflict of interest, ProPublica reported 
that you've been living until recently in a Capitol Hill 
townhouse owned by a wealthy Republican donor named Lee Beamon. 
That Speaker Johnson has also been living in what was described 
as a four-level, second empire styled townhouse of impeccable 
elegance and exceptional scale. Did you pay fair market rent in 
that townhouse of impeccable elegance and exceptional scale?
    Hon. Bishop. Yes, Senator.
    Senator Whitehouse. And how was that fair market rent 
determined?
    Hon. Bishop. It was determined by the landlord. I rented a 
room, so I don't know the details of the determination, merely 
that it was done.
    Senator Whitehouse. Yes, so if, for instance, he offered 
you highly favorable terms because he wanted you in the house 
because you are an important potential policymaker, same reason 
he might want the Speaker in the house, you would have no idea 
whether that actually was fair market rent. It was just you 
paid what you were asked to pay.
    Hon. Bishop. I have my own experience to rely upon and what 
seems proportional, so I'm pretty sure it's about right.
    Senator Whitehouse. Okay. My time has expired.
    Chairman Graham. Two minutes to Senator Moreno and we're 
going to wrap it up.
    Senator Moreno. Thank you, Mr. Chair, for the extra little 
follow up.
    Look, we could spend 15 hours if we had to rebut 
misinformation from the other side, but let me just do it real 
quickly. Again, I've been here eight years. The Ranking 
Member's been here--I mean eight weeks. The Ranking Member's 
been here 16 years. You say you've been here 10 years. Is a 
budget resolution a budget?
    Hon. Bishop. No, Senator, it's not. It's not the whole plan 
in other words, yes.
    Senator Moreno. Well, wait a second. I just heard my 
colleague who's been here a long time as well, say that we're 
cutting Medicaid because the House passed that. Did they pass a 
budget?
    Hon. Bishop. No, Senator, they didn't. They passed just the 
first step in the direction of a spending plan.
    Senator Moreno. So when you spew nonsense, it's not helpful 
and that's the point I was trying to make to my colleagues 
earlier. Look, don't try to win arguments by just making 
nonsensical points. I just urge my colleagues not to do that. 
Senator Lujan gave a very--and I think he's a good man. I don't 
know him that well--again, I've been here eight weeks--gave an 
impassioned speech about some federal employee who is a very 
good writer. I mean that guy should be a fiction writer for 
sure. Do you think that it's possible that he was an employee 
that had disciplinary actions?
    Hon. Bishop. That's the thing. You know we've got a 
secondhand account of someone's perception about their own 
employment situation. More has to be taken into consideration.
    Senator Moreno. But he wrote a very impassioned email, 
doesn't that make him automatically a good employee?
    Hon. Bishop. He might be, even all the things that he 
said----
    Senator Moreno. But he might not be.
    Hon. Bishop. But he still might not be the right person for 
the job or it may be that those jobs need to be checked.
    Senator Moreno. He didn't show up for work, maybe a 
disciplinary action, maybe a troublemaker in the office, but I 
think that this idea that, oh my God, a constituent wrote me a 
letter. We're doing terrible things. Last quick, quick point, 
this body tried, with my Democratic colleagues, to pass student 
loan relief, is that correct? Like we try to say, hey, if you 
went to college somehow you're better than all the other 
Americans and your debt should be forgiven. That got voted 
down. Joe Biden said, well, too bad what Congress said and 
relieved student debt.
    The Supreme Court said absolutely not. And yet Joe Biden 
still forgave student debt. My colleague crickets. So they love 
the Constitution when it serves their point, but in reality 
they shredded the Constitution over the last four years. And 
again, I would urge them to please come back to the side of 
reality and common sense. Thank you, Mr. Chairman.
    Chairman Graham. Senator Merkley.
    Senator Merkley. Since my colleague isn't here and since 
you made comments about his presentation, I just want to throw 
out a little bit more information, which is the Energy and 
Commerce Committee in the House has basically two accounts. 
They have Medicaid and they have Medicare. The President said 
we're not cutting Medicare. That means that instruction 
basically can only go towards Medicaid and there were many, 
many conversations that I had with House members saying, well, 
we think our plan is to cut about 800 billion in Medicaid.
    Certainly, some of those conversations were reported. It's 
simple math in the Committee. You are correct, technically, 
that the instructions don't say cut Medicaid, but the 
conversation in the House was that that was the plan. And so, 
I'd just like to acknowledge you're technically right, but my 
colleague is also right that the intention of that instruction 
was cuts to Medicaid. So I just wanted to clarify that.
    I also wanted to clarify the dialogue about the border wall 
that came up earlier. In 2021, Biden announced a pause in 
border wall construction and that pause was based on following 
the environmental rules for pre-clearance and GAO looked at it 
and said, yes, you've got to follow the law on the 
environmental side. Then by two years later, a Texas court 
decision said Biden has to start obligating funds. He then 
began disbursing those funds and he made a comment. And this 
comment acknowledges that he was going to follow the law. He 
said the border wall the money was appropriated for the border 
wall. I tried to get Congress to reappropriate it and to 
redirect it, but they didn't. And then he proceeded to allocate 
the funds for the border wall construction, a whole series of 
projects along the way.
    So yes, he didn't like the idea. He resisted it. But when 
the court said, no, you've got to follow the law, he followed 
the law and that's the point we're trying to make here is that 
the law is not a suggestion and a president is not a king. 
Thank you, Mr. Chairman.
    Chairman Graham. Well, we end on a note of commonality. 
President Biden believed he had the authority to not follow 
Congress's direction here. The Impoundment Act the contours are 
yet to be determined by the court. They will one day. The War 
Powers Act, whether you're a Republican or Democratic 
president, I believe you have the authority to commit troops 
and use military force as an inherent authority under Article 
2. Congress is trying to limit that. I think it's 
unconstitutional. But having said that, because we declare war 
that's all we do.
    All these things are nuanced. The court did say, Senator 
Merkley, that the President does not have unlimited authority 
to ignore Congress. I agree with that. Where the balance is I 
think we'll find out soon. As to you, you did a really good 
job. I appreciate it. I want to thank you for appearing before 
the Committee. Your full statement will be included in the 
record. The hearing record will remain open until noon tomorrow 
for the submission of statements and questions for the record 
delivered to the Committee Clerk. And if President Trump's team 
loses in court, I expect them to follow the court. The hearing 
is adjourned.
    [Whereupon, at 11:53 a.m., Wednesday, March 3, 2025, the 
hearing was adjourned.]

[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

                        SENATE BUDGET COMMITTEE
                            BUSINESS MEETING

                              ----------                              


                       WEDNESDAY, MARCH 12, 2025

                                           Committee on the Budget,
                                                       U.S. Senate,
                                                    Washington, DC.
    The hearing was convened, pursuant to notice, at 2:11 p.m., 
in The Capitol Building, Room S-120, Hon. Lindsey Graham, 
Chairman of the Committee, presiding.
    Present: Senators Graham, Grassley, Crapo, Johnson, 
Marshall, Cornyn, Lee, Kennedy, Ricketts, Moreno, Scott, and 
Merkley.
    Also present: Republican Staff: Nick Myers, Majority Staff 
Director; Katherine Nikas, Deputy Staff Director and Chief 
Counsel; Erich Hartman, Deputy Staff Director; Caitlin Wilson, 
Senior Counsel; Walker Truluck, Senior Policy Advisor; Nick 
Wyatt, Professional Staff Member.
    Democratic Staff: Ben Ward, Minority Staff Director; Mike 
Jones, Deputy Staff Director; Jill Harrelson, Deputy Staff 
Director; Joshua Smith, Budget Policy Director; Melissa Kaplan-
Pistiner, General Counsel.

              OPENING STATEMENT OF CHAIRMAN GRAHAM

    Chairman Graham. The meeting of the Senate Budget Committee 
will come to order. We're going to vote on the nomination of 
Dan Bishop to be Executive director of Office of Management 
Budget. I'm going to give him an opening statement. I think 
he's a good pick.

            OPENING STATEMENT OF SENATOR MERKLEY \3\
---------------------------------------------------------------------------

    \3\ Prepared statement of Senator Merkley appears in the appendix 
on page 88.
---------------------------------------------------------------------------
    Senator Merkley. Well, I'm so delighted you all attended to 
hear my opening statement. I can see my Democrats really wanted 
to hear it. Certainly, OMB has been at the center of a lot of 
major decisions regarding the impounding of funds, the 
canceling of programs, the firing of employees.
    Some of these actions, certainly on my side of the aisle, 
we believe violate the law and violate the Constitution. So, 
Senator Kennedy, you asked the question of Mr. Bishop, ``you're 
going to follow the law?'' end quote. And he responded, 
``Absolutely, absolutely.'' And then Senator Murray asked Mr. 
Bishop kind of the same question, ``Would he follow the law 
under the Impoundment Control Act?'' And he said he would join 
Director Vought's view that impoundment was in the power of the 
President. He would not affirm that he would follow the law.
    So, I'm troubled. Many of my colleagues are troubled by 
this viewpoint. And our view is the law is not a suggestion and 
the president is not a king. That we swear an oath to the 
Constitution, not to the President, not to Mr. Vought. And for 
these reasons, all of the Democrats who are now here in the 
room, have the viewpoint that we should not confirm this 
nomination.
    Chairman Graham. Well said. It was almost persuasive 
(laughter). We'll now move to the committee vote. We have a 
quorum. The clerk will call the roll if you want to. Can we do 
it by----
    Senator Merkley. Yes, please. No, we can call the roll.
    Chairman Graham. Call the roll.
    The Clerk. Mr. Grassley.
    Senator Grassley. Aye.
    The Clerk. Mr. Crapo.
    Senator Crapo. Aye.
    The Clerk. Mr. Johnson.
    Senator Johnson. Aye.
    The Clerk. Mr. Marshall.
    Senator Marshall. Aye.
    The Clerk. Mr. Cornyn.
    Senator Cornyn. Aye.
    The Clerk. Mr. Lee.
    Senator Lee. Aye.
    The Clerk. Mr. Kennedy.
    Senator Kennedy. Aye.
    The Clerk. Mr. Ricketts.
    Senator Ricketts. Aye.
    The Clerk. Mr. Moreno.
    Senator Moreno. Aye.
    The Clerk. Mr. Scott.
    Senator Scott. Aye.
    The Clerk. Mr. Merkley.
    Senator Merkley. No.
    The Clerk. Mrs. Murray.
    Senator Merkley. By proxy, no.
    The Clerk. Mr. Wyden.
    Senator Merkley. Can I just keep saying no instead by 
proxy.
    Chairman Graham. Just a blanket ``no.''
    Senator Merkley. Okay. No.
    The Clerk. Mr. Sanders.
    Senator Merkley. No.
    The Clerk. Mr. Whitehouse.
    Senator Merkley. No.
    The Clerk. Mr. Warner.
    Senator Merkley. No.
    The Clerk. Mr. Kaine.
    Senator Merkley. No.
    The Clerk. Mr. Van Hollen.
    Senator Merkley. No.
    The Clerk. Mr. Lujan.
    Senator Merkley. No.
    The Clerk. Mr. Padilla.
    Senator Merkley. No.
    The Clerk. Mr. Chairman.
    Chairman Graham. Aye.
    The Clerk. Mr. Chairman, ayes are 11 and the nays are 10.
    Chairman Graham. Reported out favorably. The record must be 
submitted to the committee--A reminder that statements for the 
record must be submitted to the committee by 12:00 p.m. 
tomorrow. The committee stands adjourned.
    [Whereupon, at 2:18 p.m., Wednesday, March 12, 2025, The 
Senate Budget Committee was adjourned.]
[GRAPHIC] [TIFF OMITTED] T9626.046

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