[Congressional Record Volume 159, Number 141 (Thursday, October 10, 2013)]
[Senate]
[Pages S7371-S7385]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DEFAULT PREVENTION ACT OF 2013--MOTION TO PROCEED--Continued
Mr. REID. Mr. President, I ask unanimous consent that the time until
6 p.m. be equally divided and controlled between the two leaders or
their designees, and that the Democrats be limited to 10 minutes each.
Basically, the reason is we have lots of speakers on this side. I need
not say more.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Michigan.
Ms. STABENOW. Mr. President, we are hearing a lot of discussion right
now about the role of government and the role of the public sector.
We know there is a minority in the House of Representatives who ran
on shutting the government down and think they have achieved something
as we see the economy teetering now, as we see people who have been put
out of work, who have mortgages, car payments, and concerns about their
children and so on, and all the services that are in jeopardy, from
food safety to law enforcement to what happens in the case of an oil
spill and all of the things in between.
I found it interesting with our colleagues who have embraced the idea
that in the greatest country in the world and in the greatest democracy
in the world there is no need for the public sector. No one else is
having this debate around the world. They are embracing every tool of
the public sector to embrace their private sector to try to beat us by
outeducating and outinnovating us in a global economy, as the
distinguished Presiding Officer understands. So we are in a global race
where everybody understands it is all in. We use all the tools that we
have.
We have the greatest private sector, the most robust private sector
entrepreneurs that can beat anybody in the world. But we also have a
public sector that creates the framework and support for that by having
a rule of law, by having basic protections in place for the public.
As I had the opportunity to listen to our colleagues on the other
side of the aisle, particularly in the House, it seems every time there
is a story--a salmonella outbreak--gosh, we had better bring some folks
back. We have veterans hurting so we had better bring something back.
We have women and children not getting baby formula through the WIC
Program so we should do something about that. We have concerns about
national safety so we should do something about that. It is almost as
if we are educating these Members about the role of government in this
process as they go. I didn't realize we did that. So maybe that
function ought to be working. It is a chaotic way for the greatest
democracy to operate, but that seems to be what is happening right now.
I remember in my times traveling to China, the last time I was there,
where they said to me: Oh, you are here in Beijing on a great day; you
can see across the street.
We are lucky. We can see across the street almost every day because
we collectively have decided that one of the things we need to do to be
able to breathe the air is to have certain rules, certain protections
and standards in place so we can breathe the air. That is important to
do through the public sector. We can't say: I will do the air in front
of this desk, and you do the air in front of this desk, and somebody
else will protect the air over here. It doesn't work that way. We do it
together. So we don't have to worry about saying: I am in D.C. on the 2
days a year we can breathe the air and look across the street. We have
the confidence of knowing that we have a quality of life, including the
ability to see across the street and breathe the air, because in a
civilized society, the greatest democracy in the world, we have made
sure that those standards are there for our citizens.
I remember on a trip to Russia a few years ago they were talking
about wanting to get more private sector investment into Moscow in
Russia. I came home talking to our businesses and they said: The
problem is they don't have a rule of law. We don't trust how we can
invest there because we are not confident in their government, their
rule of law. We don't have that problem here. We have the epitome of a
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system with checks and balances, a rule of law. Up until all of this
had begun, we have had the confidence available in the private sector
on how to invest and know that there is a system in place.
I had the opportunity, with my agriculture hat on a few months ago,
to be in Haiti where we see a great desire, meeting with the Haitian
president, to bring in more business and investment from the United
States. The problem is, you bring a shipload of cargo into the harbor,
and you can't get it off the ship without paying bribes. They have no
law enforcement system, judicial system, rule of law.
That is not true in our country. We do it through something
collectively that we call government, that creates a way for us to make
sure we can drink the water, breathe the air, see across the street,
drive on the roads, have the opportunity for education for all of our
children, and know that we can walk into a restaurant and have some
level of confidence that the food is safe or go into the grocery store
and know that.
We have research institutions that suddenly, after our colleagues in
the House have been saying--and for years I have had personal debates
with folks who said: We don't need a National Institutes of Health. Let
the private sector do it. Yet we know collectively we are willing to
share a risk of basic research to try to find cancer cures, to go over
and over again on research until they get that one that may be able to
move forward and be successful, in which case the private sector comes
in and takes it from there. But we have done it together and shared the
risk because we know it is in all of our interests to save lives--- in
our own, our family Members, and others--whether it is Alzheimer's,
Parkinson's, juvenile diabetes, cancer. All of those things are done
collectively through this thing that we call government. That is why we
have the best standard of living in the world. We are the wealthiest
country in the world. We are the envy of the world. People want to come
here and invest. They want to be a part of the opportunities in this
country. And now we are debating whether or not, literally, there
should be a public sector. Should we fund the police and the
firefighters and the judicial system? There are those on the other side
of the aisle who would say: We don't mean that. Every time we bring up
something: We didn't mean that. I am not sure what they mean then in a
civilized society.
We know we have challenges around issues of finance and debt. As
chair of the Agriculture Committee, I am proud of the fact--and I have
said so many times on the floor--that we are the only committee on a
bipartisan basis that has actually brought a deficit reduction bill to
the floor that has passed in the Senate. So I take a backseat to no one
when we are looking at ways to cut duplication, to cut things that
aren't important, to strengthen those things that are, and to save
money.
But we do not do it by destroying our economy, by shutting down the
services we all count on to protect us as consumers, to make sure our
children have opportunities, to make sure we are safe and secure in
this country. Obviously, that makes no sense. It is totally
irresponsible.
What we are not talking about enough is that we have begun to see
things happening in terms of the debt and deficit. We can continue to
do that. In fact, the yearly deficit has been cut in half. I don't hear
people talking about that, but the numbers say that.
A few years ago we set a goal of $4 trillion in debt reduction over
10 years. We are more than halfway there--not all the way there, but we
have put in place a mechanism through cuts, through new revenue,
through interest savings yielding $2.5 trillion in debt reduction out
of the $4 trillion.
What is happening by shutting down the Government and threatening a
default? That debt is going to go back up. We are going to undermine
the work we have already done by adding increased costs through
interest payments and delays that will actually increase the debt. We
saw that in the last go-around in 2011. Even though there was not
actually a default on the full faith and credit of the United States of
America, we saw it because of exactly what is happening now. We had a
lot of talk--in my judgment some very irresponsible talk--and posturing
back-and-forth instead of working together in a reasonable way. We saw
the markets affected, a drop of 2,000 points in the market, $800
billion in retirement savings of folks who worked hard all their lives
and maybe are still working and cannot figure out why in the world we
cannot work together in a reasonable, rational way to solve problems.
There was $800 billion retirement savings gone. During that time in
2011, that summer, July and August, anyone who was signing up for a new
mortgage is paying on average $100 more a month in payments because the
interest rates were higher.
Instead of building on what we have already done together or even
acknowledging it--it may not make good politics to acknowledge folks on
the other side of the aisle. Unfortunately, it seems they certainly do
not want to give credit to the President or give credit for anything we
have actually been doing together. But the reality is the deficit has
been cut in half and we are more than halfway to the goal that was set
for savings over 10 years.
There is nothing that has been happening in the last few days--
shutting down the government, threatening possible default on the full
faith and credit of the United States--that is helping us reach that
goal. It is actually going in the opposite direction. As interest rates
go up, billions of dollars will be added to the debt.
We have tried to figure out over the last number of months how to
continue bringing down the debt and tackling long-term challenges
while, by the way, creating jobs. The best way to get us out of debt is
to create jobs so people can go back to work and be part of the
economy. That is the best thing, and we are sure not hearing enough
talk about that.
I am very proud to come from a State that makes things and grows
things. It is manufacturing that is bringing us back, that is driving
the economy, and it is agriculture where we have the biggest exports,
in terms of export surpluses, in the country. We need to make things
and grow things, focus on that. That will bring down the debt as we
create more opportunities and more jobs.
In the last 6 months we have tried to go to a conference committee, a
negotiating team, a formal negotiating process between the House and
Senate on a 10-year budget that will bring down the debt, create jobs,
do things in a fair and balanced way that puts middle class families
first. We have tried to do that, as of today, 21 times. In fact, the
chair of the Budget Committee has come to the floor and moved that we
get to that process 21 times, joined by distinguished Members of the
Republican caucus in the Senate who have come to say the same thing,
let us go to a budget negotiation, a formal budget negotiation. Over 21
times the same folks who shut down the Government, the same folks who
say it doesn't hurt anything if we default as a country, even though
every economist, every business leader is begging and pleading and
providing facts and information as to why it would be a complete
disaster--the same people who are saying defaults don't matter,
government doesn't work, except when they are reading something in the
paper and somebody is saying there is a problem--they, those same
people have, 21 times been able to block the Senate from going to a
formal negotiation with the House on the budget.
We are in this crazy place where, on the one hand, when we step back
we are actually seeing the economy slowly moving forward--of course
until now, when it is beginning to be stymied by all of this. But the
economy has been moving forward. The yearly deficit is coming down. We
have been tackling the long-term debt. We are coming out of this. Then
we have a group of folks who have decided in the big picture that there
is no value in a democracy, in the greatest country in the world, in
government. They don't seem to care about what it takes to provide an
economy and so on.
Now they are saying they are willing to jeopardize the faith and
credit of the United States of America, have America default on our
bills and potentially send us not only and probably into a great
recession similar to the one we just came out of, but economists tell
us it could send us back even further, into the thirties or forties.
They just do not know.
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We are in a global marketplace right now where we don't know what
happens when we default on our bills, when we lose the confidence of
the world to invest in America or to even purchase our debt. We don't
know what happens when small businesses see all their capital dry up
and people are not able to get mortgage loans again or they cost much
more than they did before and all the other ramifications of our not
paying our bills.
There are colleagues who say the Secretary of the Treasury--who, by
the way, came down and did an excellent job in the Finance Committee
today. It was very serious. It was very sobering, but I thought he was
clear and he was factual and I very much appreciate his coming to the
Senate Finance Committee. But there are those who say he says October
17 is the last time extraordinary measures can be used to stop us from
falling off the cliff and going into default and losing the full faith
and credit of the United States--except, no, it could be the next day,
it could be the day after.
Coming from a car State it reminds me of someone who is driving in
their car and they look and it is on empty. You may have a little bit
more. Sometimes they say you have 5 miles more, you have 10 miles more,
maybe you have 30 miles more, but you are on empty and you are going to
stop--the car is going to stop. The question is how often do you want
to risk that and play that game when you know the car is going to stop.
That is, in my judgment, the kind of absurd and irresponsible debate
going on right now--about whether the car stops immediately or in 2
miles or 3 miles or 30 miles. Why in the world would you want to put
yourself in that position? Lord knows, defaulting on the full faith and
credit of the United States of America is much more serious than
running out of gas in your car.
There is no reason for this--none, zero. This is a manufactured
crisis. Do we need to continue to work together to tackle the long-term
debt of this country? Absolutely. Count me in. Do we need to focus on
what is happening to middle-class families who are getting squeezed on
all sides and have a hard time just holding on? Do we need to focus on
jobs in this country, making things and growing things and outeducating
and outinnovating the world? Absolutely. Count me in. Count me in at
the head of the line on that.
We in Michigan right now, in terms of our hard work and ingenuity,
take a backseat to nobody. But to find ourselves in this craziness is
beyond my understanding. I know people at home are going: What in the
world is going on here? Can't you guys just come together and figure
this out and quit making up crises and quit creating artificial
deadlines and get things done?
I think it is important at this point in our history that we remember
President Ronald Reagan said: ``Never before in our history has the
Federal Government failed to honor its financial obligations.''
We are the greatest country in the world. Others look to us. They
want to be like us. They want a vibrant middle class like America has
had. We need to fight hard to keep ours and keep it growing. We need to
make sure we do not fail to honor the financial obligations of this
great country.
I yield the floor.
The PRESIDING OFFICER. The Senator from Ohio.
Mr. PORTMAN. Mr. President, I just listened to my colleague from
Michigan talking about the need to reopen the government and the need
to deal with the debt. Of course, I agree with that, as do my
colleagues on this side of the aisle. We also heard discussion about
the fact that we should not be manufacturing crises. Unfortunately, we
have a crisis on our hands; that is, the crisis of debt at record
levels, so I wish to talk about that a little today and talk about why
this discussion is so important, particularly on extending the debt
limit because that would be the place naturally for us to deal with the
problem that faces this generation and certainly future generations
reaching this historic level of debt.
In a matter of days, we are told, our Nation is going to be reaching
this debt limit which is $16.7 trillion. Think about that. That is
sixteen thousand billion dollars. It is impossible to comprehend that
number, but let's try: $16.7 trillion would produce a stack of $1 bills
1 million miles high. That is enough, by the way, to go to the Moon and
back. It is now bigger, by the way, than our entire economy. Only once
in our history have we had debt as a percent of our economy so large
and that was after World War II. We were able quickly to address that.
We didn't have the long-term liabilities we have now, and we had very
high defense spending from World War II we were able to reduce. But
other than that, we have never been here before. I would say we are in
uncharted territory.
By the way, it is not just that we have this huge level of debt and
deficit and the overhang on the economy, but it is the fact that the
economy is also weak. I think they are related. I think this huge level
of debt and deficit is akin to a wet blanket over the economy.
Here is an interesting chart. It shows the debt limit rising twice as
fast as the economy has grown in the last 2 years so the debt increase
has gone up by about $2.4 trillion and unfortunately our GDP increase
has been less than half of that. That is the problem we are trying to
face. It is a lot of back-and-forth.
I know for some people it looks as if this is politics. It is not. It
is about a fundamental issue. There are fundamental disagreements, and
I respect those disagreements, but we have to address this problem and
we have to do it in the context of the debt limit. If we do not, we
will simply be kicking the can down the road again and letting down the
people we represent. If you divide that debt among the American people,
each of us--every man, woman, and child in America--owes around
$50,000. By the way, of course, that is far more than the annual per
capita income for that man, woman, and child in America. If you think
about that, it is about $140,000 to $150,000 per household on average.
That is where we are today.
I don't think it is constructive to be pointing fingers of blame
because, frankly, for decades Republicans and Democrats alike have
spent more money than the government takes in. There have been more
promises made than can be kept, and we have gone through a process of
mortgaging the future of our kids and grandkids as a result. Here we
are. In some respects, the greatest single act of bipartisanship here
in the Congress has been the overspending. The question is not how we
got here but what we are going to do about it. Where are we going?
Yesterday the President said that raising the Nation's credit limit
by another $1 trillion really pays for last year's deficit spending,
not next year's spending. I guess we could have that debate. I would
say it is about the future because we are borrowing more money to pay
the bills of the country going forward, and that is what many of us
want to talk about--how, going forward, we can reduce those bills.
The truth is that whether you say you are paying for the past or
paying for the future, it really doesn't matter to the American people
and it doesn't matter to our children and grandchildren who end up
paying the bill. Long after we are gone, this huge level of debt and
deficit is going to be something they are going to have to deal with.
We all know the consequences if we don't raise the debt limit.
Without a debt limit increase, the Federal Government will be unable to
borrow to meet its expenses. We are borrowing 20 cents of every dollar
the Federal Government spends, so the government would be unable to
meet all of its obligations.
There has been discussion about meeting the interest on the debt, and
that is only about 8 percent of revenue coming in. I assume that could
be met, but it is true that there are other obligations that can't be
met if the government can't borrow because the government is spending
more than it takes in and needs to borrow to make up the difference.
The deficit, some have said--including some of my colleagues on the
other side of the aisle today--is lower now, and somehow that is an
indication that we are OK in terms of the deficit. I would remind folks
that the deficit this year is the fifth largest deficit in the history
of our country--in our entire history. It is over $640 billion. More
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significantly, the Congressional Budget Office, which is the
nonpartisan group around here that analyzes this stuff, says it is
temporarily lower than $1 trillion. In other words, they say that
within a decade it will get back up to $1 trillion. Whether it is $640
billion or $1 trillion, it is way too high.
Entitlement spending, by the way, will then push these annual
deficits up to the equivalent of $3.4 trillion a year--five times what
they are today--within a few decades. That is based on the
Congressional Budget Office. At that point, the national debt would be
2\1/2\ times as large as the entire economy. Today it is about the size
of the economy; it is a little bigger. It would be 2\1/2\ times as
large as our whole economy. I saw one CBO report recently that simply
stops calculating the interest cost at that point because they cannot
foresee our economy functioning under those kinds of conditions. Think
about your own family budget or think about your business. You could
not function either. The bank would not be able to lend you any money.
Both of these outcomes--default today and bankruptcy in the future--
are unacceptable. That is why it is time for us to work together to try
to do something about them. As the debt ceiling is raised, it is time
to address the underlying problem. That is what we are saying.
By the way, the American people are saying that too. Based on the
polling I have seen this week, the American people by better than a 2-
to-1 margin are saying: Don't raise the debt limit without doing
something about the spending. They get it because for them it is like
the credit card--when you reach the limit, you realize you have to do
something about the underlying problem, which is how much you are
spending.
The President says: ``Pass the debt limit increase now and we will
address the spending later.'' I wish it were that simple, but I think
he knows, as well as everybody in this Chamber and every person who is
watching at home today, that Congress simply doesn't reduce spending
unless it is forced to do so. If you don't think that is true, let me
remind you of what the history is here. In the past three decades--I
have gone back and looked at all of these deficit reduction plans that
did get through Congress, and there were not many, but there were some.
In every single instance where there was any significant deficit
reduction, it came as a result of what? A discussion about the debt
limit because that is the time in which there is some pressure here in
Congress to actually do something about it. I found one in 2005, which
was a relatively small reduction in spending, but otherwise every
single one of them--the Gramm-Rudman rescissions in the 1980s; the 1990
Andrews Air Force Base agreement that the first President Bush
conducted with Democrats; the 1993 balanced budget talks; the 1997
balanced budget agreement Bill Clinton negotiated with Newt Gingrich--a
Democratic President and a Republican Speaker; and, of course, the pay-
go rules that many Democrats are fond of, those pay-go rules came out
of a debt limit discussion; and finally, we only have to look back a
couple of years ago to the Budget Control Act. As my colleague has said
on his side of the aisle, there have been some successes in reducing
spending on the discretionary side of spending--which is about one-
third of the budget that is appropriated every year--that came out of
the Budget Control Act, which is a result of what? The debt limit. In
other words, Members listening to the folks back home.
I am listening to my constituents back home in Ohio right now, and
they are saying: Don't max out the credit card again and go over the
limit unless you do something about the problem. It is little wonder
that the American people, by this margin of 2 to 1 that I talked about,
are saying: Don't do it without the spending reductions. They know that
is the only way the spending cuts are likely to happen.
Why is it that any increase in the debt limit should also include
progrowth provisions? Well, because one way to get at the debt and
deficit is spending restraint. We talked about the discretionary
spending being about 35 percent of the budget, and we made progress
there. The other 65 percent of the budget is the mandatory spending
side, and we have not made progress there. The other part would be
revenue, and on the first of this year taxes were raised by $620
billion. What we have not done is deal with the mandatory side.
Finally, of course, economic growth helps. As we are extending the
debt limit, we should also look at how we can help give the economy a
shot in the arm. Tax reform is the way to do that, and I think there is
a consensus in this body that we need to do it. That would seem to make
sense as well.
We have already made progress on one of the three legs of the stool,
which is dealing with the discretionary spending. It has been pretty
much flat for the last couple of years. By the way, for the first time
since the 1950s there has actually been a reduction in spending for 2
years in a row, but that is only 35 percent of the budget. The fastest
growing--again, 65 percent of the budget--we have not dealt with. That
65 percent grows to 76 percent of the budget in the next 10 years based
on the Congressional Budget Office.
On the tax side, the same Congressional Budget Office tells us that
starting in 2014--that is next year, around the corner--taxes as a
percentage of our economy will be above the historic level. In other
words, there will be more taxes coming in from the tax increases that,
in part, we passed earlier this year, but the part we have not dealt
with is mandatory spending. It is the biggest and the fastest growing
part of our spending. Let's face it. It is politically difficult to
deal with, but that is what we were hired to do, and that is what the
President was hired to do in terms of providing leadership.
With ObamaCare, of course, we added a new health entitlement program
to this part of the budget--the 65 percent. These health entitlements
were already growing more quickly than the rest of the budget, even the
rest of mandatory spending. In fact, the Congressional Budget Office
tells us that in the next 10 years the health entitlement programs grow
by over 100 percent. These are vital programs--Medicare and Medicaid--
but they have to be reformed so they are sustainable in the future and
are there for our kids and grandkids. With 10,000 baby boomers retiring
every day and health care costs continuing to rise, we have a real
problem, and we have to address it. All of us know that--Democrats and
Republicans alike, as well as the President and the Congress. Again,
history tells us the best way is to link this with the debt limit
because that is the opportunity and has traditionally been the
opportunity to make progress.
By the way, over the long term, overall revenue is projected to
increase and discretionary spending is projected to be flat. The entire
increase in our deficit--these huge debts and deficits going forward
that I have been talking about--is due to the mandatory spending.
Again, that is the Congressional Budget Office, not me.
A good place to start, of course, would be some of the mandatory
spending reforms the President has proposed. That would seem to be less
controversial. If they are in the President's budget, that means he
supports them. The President sent up a budget this year, and he
included over $700 billion of spending reforms on the mandatory side of
the budget. That is why what I have been advocating is, let's start
there. Let's look at the President's own proposals. These are not the
proposals that all Republicans support, but after all we should have a
negotiation.
This notion that the President says he refuses to negotiate has never
been true. Every President has negotiated. I think the American people
are confused by this. How could the President of the United States say
in the context of this debt limit discussion that he refuses to even
talk to the other side? That makes no sense. The first President Bush
rolled up his sleeves; we talked about the 1990 agreements. President
Clinton rolled up his sleeves; we talked about the 1997 balanced budget
agreement he negotiated with then-Speaker of the House Newt Gingrich.
That is what Presidents do. We need them to lead, particularly on these
tough issues.
As we talked about earlier, these are politically tough issues. The
President says he doesn't want to be held hostage over the debt limit.
He is not. He has been given the opportunity to lead using his own
proposals--at least that is my suggestion.
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We can also take a very simple step as we are going through this to
be sure that this newest health care entitlement, which is the
Affordable Care Act, which is a new entitlement program, doesn't become
even more of a deficit driver than many of us on this side fear it will
already be. The Affordable Care Act includes a provision that requires
that when you get your subsidies under the exchanges, you have to
verify your income. That makes sense. You have to verify your income
between 100 percent of poverty and 400 percent of poverty. Below that
it would be Medicaid, and above that it would be the subsidies under
the exchanges.
Under a final regulation the administration put out, they said: We
know you should verify your income, and that is what the law says, but
we are going to give all of the exchanges another year to do it--not
until 2015. Well, obviously the concern there is that will be an
invitation for fraud, waste, and for big new expenses.
As a result, the Federal Government body in charge of this, the CMS,
came out and said: No, for Federal exchanges, we will require people to
file their income, but not for State exchanges. There are about 17
States and the District of Columbia that have State exchanges. They
said to them: You guys can wait--in fact, not just until 2015, but
there is no date certain.
That is something we in the Congress should deal with. The Democrats
here in the Chamber who voted for the Affordable Care Act certainly
should support that because the intent of the bill when they signed up
for it and when the President supported it was, of course, that you
would verify your income. That is an example of a simple step we could
take to prevent the distribution of subsidies until we have a system to
verify those subsidies are going to the right people.
Finally, let's give the economy a shot in the arm. As part of this
process, let's take a step forward and say: Let's reform the Tax Code.
We are going to differ about the details, but let's get started on it.
So my proposal would be, as we have a vote on extending the debt
limit, let's do these important reforms we talked about on the monetary
side, but let's also commit to tax reform. Let's force the process.
Let's facilitate it. Let's expedite it.
The American people are not looking for us to just get the spending
under control; they want to see this economy grow. Again, they are not
happy with this, where the debt is increasing at twice the rate of the
economy. They want to see opportunities for their kids to get a job.
They want to see the opportunity to have the dignity and self-respect
that comes with a job.
We know that tax reform, done properly, will promote growth, it will
create jobs. Again, we are going to differ on some of the details, and
that is OK. Let's get started on it.
Perhaps the President doesn't think that spending and the deficits
are a real problem. If he thinks that, he should say it. He says just
the opposite. He has said he does think it is necessary for us to
address these problems. In fact, in his own budget, he sent proposals
forward. So what we need to do is get together and negotiate and talk
and deal with this underlying problem. A debt that is nearly $17
trillion is unacceptable to everybody, I hope, and I would think we
would welcome the sign that Republicans are giving now that we want to
negotiate, we want to talk.
Negotiations, by the way, I don't think are a sign of weakness. I
don't think coming to the table is a signal of a failure of leadership.
I think just the opposite; I think it shows strength and shows
leadership. Again, I can promise my colleagues Republicans don't
support all of the President's suggested savings in his budget, and a
purely Republican agenda would look very different from whatever might
emerge from bipartisan negotiations. But, again, the American people
sent us here to get this done.
Using President Obama's own proposals, let's take that first step
toward entitlement and progrowth tax reform and onto some common ground
to break the gridlock in DC and finally do something positive about
that underlying problem we all acknowledge.
Yes, we face serious problems, real challenges, but we also have an
opportunity to do something positive, to deal with the problem we all
acknowledge--something that will not only prevent a debt limit crisis
today but a debt crisis tomorrow.
I hope to move forward on this important project. I think we owe it
to the people we represent.
I yield the remainder of my time.
The PRESIDING OFFICER. The Senator from North Dakota.
Ms. HEITKAMP. Mr. President, October 1 was a significant day. Two
things happened to the constituents in my State. The first we talk a
lot about here, and that is basically the shutdown of the government,
the failure to pass a continuing resolution that would keep the doors
of government open for the thousands and thousands of Americans, and
North Dakotans, who depend on government services. This horrible
impasse continues to have a horrible impact and continues to have
consequences that people didn't foresee.
The second thing that happened, which hasn't gotten a lot of
attention, is the expiration of a long-term farm bill. After
negotiating in this body, and with a large bipartisan vote, we were
able to accommodate concerns. We came together after negotiating, and
we came up with a package that included real reforms, eliminated direct
payments, included real reform in SNAP, streamlined conservation
programs, and basically offered $25 billion of debt relief to the
country. It was a great package.
We sent it over to the House and waited for the House to pass their
farm bill. They initially couldn't pass a farm bill. Then they decided
to divide the farm bill, pass part of the farm bill, pass the other
part of the farm bill with nutrition, now have a vote to bring them
back together, and we are patiently awaiting the appointment of a
conference committee.
The passage of the farm bill has never been a partisan issue. In
fact, it is a regional issue. Things that are good for North Dakota may
not be good for the Presiding Officer's State of Delaware, but we all
work together, we all compromise, and we all come together.
This past weekend South Dakota and southwestern North Dakota were hit
with a terrible snowstorm. Over 2 days that region was blanketed with
anywhere from 2 feet to 7 feet of snow and contained winds over 70
miles an hour. Because of the early storm, tens of thousands of cattle
died because they were suffocated, mired and drowned in stock dams or
dropped in exhaustion. The pictures and the stories are devastating.
This image is one that is all too common after the recent blizzard in
the Dakotas. These cattle that died over the weekend near Hettinger,
ND, were owned by the Christman family. As is the case with many North
Dakota ranchers, this hard-working family lost many cows and calves
during this surprise fall storm.
What people may not understand about the cattle industry is they
might think one cow is like the next cow; people can just replace them.
These herds are the product of years and years of selective breeding,
years and years of working to improve the quality of their herd and to
meet different specifications in the market. They are more than cows.
They contain an intellectual property component that is not easily
replaced.
This is where the crisis of the dysfunction that is Washington, DC,
meets natural disaster. When livestock die from a natural disaster,
farmers report the number of cattle that died to the Farm Service
Agency--the FSA. However, because the doors are closed on the Federal
Government, North Dakota ranchers, South Dakota ranchers, anyone who is
experiencing livestock losses, have no place to report those losses.
And even worse, they have no one at USDA to consult with about the
information they need to collect to eventually report their claims.
This is critical information. If farmers aren't collecting the
information they need to make disaster claims in the future, the safety
nets put in place to provide some support to these hard-working
ranchers may be denied simply because of a paperwork error.
Unfortunately, this is an avoidable problem. As has been the case
with so many in recent years, it is the product of congressional
dysfunction. Because we haven't passed a new farm bill, the livestock
program that helps ranchers withstand losses to livestock herds due
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to extreme weather events--the Livestock Indemnity Program--has
expired, and the emergency assistance for livestock and honeybee
producers program, which is in the stalled farm bill and which helps
producers stay in business after they experience significant losses
because of natural disaster, isn't available to the ranchers and the
beekeepers who were hit the hardest by the storm. Until Congress passes
a farm bill, livestock producers are in danger of losing their
business, and they will not be eligible for support.
These ranchers and the farm bill are more collateral damage of the
government shutdown. Because we are debating whether to fund the
Federal Government, Congress isn't able to work on a farm bill. We have
been waiting and waiting and waiting for the appointment of conferees.
The chairwoman, I think, intends to make a floor speech about the farm
bill yet today. She has been working very hard to encourage the
collection of information and to encourage the appointment of conferees
to the conference committee and get focused on this issue.
Unfortunately, it is not happening until next week, if it even happens
then.
In addition, the lack of assistance for ranchers in the aftermath of
this devastating storm as a result of the shutdown is hurting farmers
and agricultural industries, which is a key piece of North Dakota's
economy.
Here are some additional examples of where the shutdown is hurting
our farmers. Frequently, because farmers who use FSA loans have a joint
obligation with FSA, when they receive their checks after they sell
their products, the checks are frequently made out to both the Farm
Service Agency and the farmer. Consequently, the farmer cannot cash the
check unless he can get an endorsement from the Farm Service Agency.
Guess what. They go, knock on the door, and no one is there to cosign
their check. So that money in their hand that they need to make the
investments for next year, that they need to pay the person who maybe
supplies the feed, that they need to pay the fuel bill--that money is
not available to them, even though they have earned it and they have
sold their products. So the government shutdown prevents FSA from
cashing these checks and from signing these checks. This is money the
farmers have earned and they deserve, and denying them their income is
outrageous.
What is worse, farmers and ranchers enrolled in the loan programs are
new and beginning farmers, farmers who are just starting. It is a great
thing that is happening in the Dakotas and all across farm country as
we look at the increasing commodity prices and we look at a farm
program that for the last 5 years has been stable and provided risk
management. As a result, our farmers are getting younger and younger.
The people who are going to feed the world and continue to develop our
rural areas are younger and younger. They cannot withstand cashflow
problems. They cannot withstand this loss.
Another impact of the shutdown: Agricultural reports from the
National Agriculture Statistics Service aren't available to farmers.
These reports are crucial resources that farmers need to make decisions
such as how to price crops, which commodities to grow, and when to sell
those commodities, and the reports enable farmers to track cattle
auction prices. Not only has NASS stopped putting out new reports about
demand and supply, exports, and prices, but all Web sites with past
information have been taken down because of the government shutdown.
Farmers aren't receiving assistance from farm programs. The
Department of Agriculture's local farm services offices have been shut
down because of the shutdown and, as a result, farmers can't apply for
new loans, sign up acreages for farm programs, or receive government
checks for the programs they are already enrolled in. Devastating to so
many of our people living on fixed incomes in North Dakota, who have
engaged in and basically put their land into the conservation reserve
program, is conservation reserve checks are not being issued. That has
a huge impact, particularly on those ranchers and those landowners who
use CRP payments to supplement their Social Security.
The list goes on and on. As time continues, this list will only get
longer and longer.
I understand the strategy, perhaps, in the House is to--whatever is
the headline of the day, whatever becomes the issue of the day, we will
simply write a little mini CR to take care of that, and say, see, we
are dealing with that issue. But we know it is only a slice. It doesn't
take care of those small businesses that have applied for small
business loans and maybe got this close to being able to realize their
dream and now have it delayed. It doesn't deal with the critical
functions of government in its entirety. Instead, it picks and chooses
the winners and losers. Let me tell my colleagues, these ranchers who
have experienced this loss are the losers under this system.
It is time for this Congress to begin to do the responsible thing,
which is open government, fund all of government, and start telling the
American people that their interests are paramount. Start telling
farmers and ranchers in the Dakotas who have experienced this
tremendous loss that we care about their loss, that these programs have
to work for them, and we have to do everything we can to make sure
America is working again.
I wish to close with one thought. In the great recession, one place
where we have experienced a tremendous amount of opportunity and
support has been in agriculture. Those States that had a good
agricultural base had some of the lowest unemployment numbers in the
country. Sixteen million jobs depend on agriculture in this country,
and all they ask for in return is a little bit of help, a little bit of
a safety net for guaranteeing a food supply in this country. But we
can't seem to even deliver that obligation. We can't seem to deliver
that promise. We have to tell the American people that their interests
are ahead of any petty or partisan interest in this body and in this
Congress. We have to get the Congress back working for the American
people, particularly for the hard-hit ranchers and farmers of
southeastern North Dakota and West River, SD.
Thank you, Mr. President. I yield the floor.
The PRESIDING OFFICER (Mr. Markey). The Senator from New Jersey.
Mr. MENENDEZ. Mr. President, I ask unanimous consent to speak for up
to 15 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. MENENDEZ. Here we are again at the same crossroads. We know the
landmarks. We know the signs. We have been here before. We negotiated
in good faith to avert the last shutdown, the last default threat. We
opposed the sequester, but that wasn't enough. So here we are, once
again, and here we will be again in a week, a month, 6 months, a year,
being asked for more concessions to a minority of extreme Republicans
who seem to have forgotten that we operate under the rule of law. They
simply have chosen to ignore it.
The fact is we passed the Affordable Care Act. It went through the
legislative process, was signed by the President, tested in the Supreme
Court, but so what, they say. It does not count. Similar to the
schoolyard bully, they want a do-over or they will take over your lunch
money.
The rightwing Republican minority claims to love the Constitution,
adheres to the strictest interpretation of its tenets but apparently is
not interested in living by it or by the rule of law that this Nation
stands for and lives by.
They say Democrats have failed to negotiate in good faith and voted
against trying to reach a compromise. The fact is for 6 months Senate
Republicans have stood in the way of budget negotiations--what they
want, negotiations--by blocking requests for Budget Committee members
to conference with the House of Representatives. They have objected
over 20 times to those budget negotiations.
The Senate followed regular order and passed a budget resolution for
fiscal year 2014 on March 23 of this year. Our budget resolution
provides just over $1 trillion by replacing the irresponsible
sequestration cuts while following the spending limit imposed by the
Budget Control Act. The House wants to keep sequestration cuts by
funding the government at $976 billion or about $80 billion less than
the Senate. The fact is we have already compromised with the House by
agreeing
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to a continuing resolution at a level of $986 billion--much closer to
their numbers than to ours. If you ask me, that is more than $70
billion in compromising. But they simply will not take yes for an
answer.
What the past weeks have shown us is that this is not even about
budget numbers. They just want to make a political point, and they are
holding the country hostage in order to make it. They simply do not
want either the Affordable Care Act or, for that fact, this President
to succeed. But that train has left the station. The President is
already turning the economy around from the massive deficits he
inherited when he took office, and the Affordable Care Act is the law
of the land.
Make no mistake, it is not a coincidence that we are here again doing
the same thing much like ``Groundhog Day.'' Mark my words, we will be
here again tomorrow and in the future if the Republican shutdown
strategy continues.
We are being asked to capitulate yet again at the threat that
Republicans will keep the government shut down, that they will force
America to default on its obligations and risk a global consequence and
America's leadership role in the world.
It is a deliberate, if fatally flawed, Republican strategy. One might
go so far as to call it a conspiracy--adopted to achieve through
bullying what they cannot achieve at the ballot box.
We know it is a deliberate effort hatched many months ago. In fact,
it goes back to 2010 when the House Republicans threatened to push the
Nation into defaulting on its obligations and shut down the government
unless we agreed to aggressive and deep structural cuts that met their
political objectives in the midst of one of the deepest recessions in
our history, a recession President Obama inherited when he took office.
Then, in November of 2010, the antitax, antigovernment, antispending,
antiprogress side of the Republican Party exercised their newfound
power and hamstrung their leadership into rejecting any kind of
compromise, forcing the House Speaker and majority leader to reject any
grand bargain proposed by the Democrats. They did it gleefully. It was
part of their strategy to block any successful effort to actually
govern. They chose instead to fuel the rightwing flames, burn down the
house, and bring government to a halt until they achieved their
objectives.
From December 2 to December 21, 2010, we enacted four separate
continuing resolutions to keep the government open--four of them--to
keep the government functioning until March 4. Let's not forget that
these appropriations actually cut the Congressional Budget Office's
projection of discretionary spending from 2013 through 2022 by $400
billion. But that was not enough. They wanted more.
On March 2, 2011, as the new deadline approached, we passed another
short-term CR, taking us to March 18--just 16 days--that cut spending
by yet another $4 billion. Still not enough.
On March 16, the deadline approaching once again, we passed another
continuing resolution, taking us to April 8, with another $6 billion in
spending cuts. Was it enough? Of course not.
On April 4, House Republicans applauded the Speaker's announcement to
begin preparations, for what, yes, a shutdown of the government.
Clearly, nothing is enough.
On April 14, just before midnight, the Speaker agreed to the seventh
short-term extension with more cuts that analysts said would amount to
an additional $350 million in that year alone.
All in all, we agreed to $40 billion in total cuts, and we have cut
even more since then, including the current Senate-passed clean funding
bill that would reopen the government today if the House would just
pass it.
They say we have not taken votes. We have taken a bunch of votes on
what they have sent us. They have not taken one vote on the one
resolution we have sent them.
It is a clear pattern, a clear strategy. They will not stop. They
will not take yes for an answer, and they clearly will not govern until
they achieve their political and ideological goal to end government as
we know it. That has been their plan all along.
In fact, last Sunday the New York Times reported that after the
President was sworn in to his second term, a coalition of top
conservative activists, including former Attorney General Ed Meese,
along with the Koch brothers, devised a take-no-prisoners legislative
strategy to derail health care by shutting down the Federal Government.
Now we are being blackmailed again. As further proof of this take-no-
prisoners strategy, Jonathan Chait of New York magazine recently
reported on something called the Williamsburg Accord. Mr. Chait wrote:
In January, [this year], demoralized House Republicans
retreated to Williamsburg, Virginia, to plot out their
legislative strategy for President Obama's second term. . . .
They called it the Williamsburg Accord. He said:
If you want to grasp why Republicans are careening toward a
potential federal government shutdown, and possibly toward
provoking a sovereign debt crisis after that, you need to
understand that this is the inevitable product of a
conscious party strategy. . . .
His article goes on to say:
The way to make sense of it is that Republicans have
planned since January to force Obama to accede to large
chunks of the Republican agenda, without Republicans having
to offer any policy concessions of their own.
That is not negotiation. We saw the implementation of that strategy
beginning early in the spring when we did exactly what Republicans
wanted. We passed a budget in the Senate, and the House passed a
budget, and we attempted to go to conference to work out the difference
between the two. Actually, we have attempted to do that more than 20
times now, and every single time Republicans have blocked action.
For 6 months they have refused to talk, they have refused to
negotiate, they have refused to have a conversation. As we now know,
this all was planned out from the beginning, going back to their
January Williamsburg Accord.
They have intentionally driven us to the edge of the cliff to serve
their own political interests at the expense of the Nation's economy,
the jobs of working families, and the retirement savings of our
seniors.
Now the GOP's solution to get us out of this Republican shutdown is
the equivalent of Whac-A-Mole. It is their form of governing. Whatever
issue pops up that they see a problem with as a result of their
shutdown, they draft a bill to address a single issue. Last week it was
national parks. This week it was death benefits for soldiers. What will
it be next? Anyone who has ever been on the boardwalk and has played
that arcade game of Whac-A-Mole knows you can never quite get ahead of
those pesky moles that keep popping up. How long do they plan to govern
in this way?
Bill Moyers recently wrote in an essay:
Despite what they say, Obamacare is only one of their
targets. Before they will allow the government to reopen,
they demand employers be enabled to deny birth control
coverage to female employees; they demand Obama cave on the
Keystone pipeline . . . they demand the watchdogs over
corporate pollution be muzzled and the big bad regulators of
Wall Street sent home. Their ransom list goes on and on. The
debt ceiling is next. . . .
At least let's name this for what it is: sabotage of the democratic
process.
Kevin Drum of Mother Jones wrote:
How do you get across how insurrectionary this is? Raising
the debt ceiling isn't a concession from Republicans that
deserves a corresponding concession from Democrats. It's the
financial equivalent of a new nuclear bomb.
Warren Buffett used equally stark terms when he said in Fortune
magazine:
It ought to be banned----
Referring to defaulting on the Nation's obligations----
It ought to be banned as a weapon. . . . It should be like
nuclear bombs, basically too horrible to use.
Clearly, in the name of some misguided allegiance to an extreme
ideology, a handful of ultraconservative extremists in the Republican
Party are putting at risk the rule of law. They are putting at risk the
full faith and credit of the United States, America's influence--as
well as our obligations--around the world, and our national security,
embassy security, intelligence collection apparatus, and American
diplomats, Foreign Service officers, and contractors serving in posts
around the world.
[[Page S7378]]
This is not a game. Real people are already being hurt by these
tactics. I find it pathetic that some Republicans are willing to risk
the full faith and credit of this Nation and inflict unnecessary harm
on hard-working families and put the very principles of this democracy
on the line all just to show how ideologically pure they are.
It is one thing to come to Washington wanting to destroy your
government. It is quite another to destroy our economy in the process.
If you want to negotiate, let's negotiate. Let's do it
constructively, in good faith, and without threats. Let's try, as we
have tried over 20 times, to get to that moment. Let's reopen the
government, let's pay our bills, and then we will negotiate.
It is time to reject the schoolyard bully political strategy that
Republicans hatched months ago, ratchet down the rhetoric, and do the
hard work of solving problems together.
With that, I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. GRASSLEY. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Iowa is recognized.
Mr. GRASSLEY. Mr. President, I heard the previous speaker plead for a
solution. I think we are all pleading for that. We are now in our 10th
day of a government shutdown--quite frankly, one that did not have to
happen.
To some extent, it seems that this administration--meaning President
Obama's administration--is going to great efforts to inflict as much
pain through this shutdown as possible.
Mr. President, the administration went to great lengths to try to
keep World War II veterans from viewing the memorial dedicated to their
service, the World War II Memorial. It is an open-air memorial. It
likely took more effort and personnel to close and barricade the
memorial than it does to keep it open. It is one of those memorials
where 24/7/365 you can go there. There is no reason it could not have
been the same way during this recent period.
The government could be open and fully operating today but for the
majority and its unwillingness to engage in legitimate debate over
proposals to amend ObamaCare or any other legitimate issue of dispute.
With regard to ObamaCare, not to defund or delay it is something that
is not right in a body that is a deliberative body. You ought to
consider all issues.
Instead of wasting a lot of time being in quorum calls or days of not
voting, there could be legitimate discussions of pieces of legislation,
and in the process maybe reach some sort of conclusion through what we
call ``regular order.''
The House has passed and the Senate has defeated three different
continuing resolutions. Each one of those would have kept the
government open and prevented a shutdown. That looks like that is
something that was debated here and decided here. But it was decided in
a manner that was not debatable, a motion to table the House
amendments. These three offers from the House of Representatives were
rejected by the Senate majority. We are in this position because the
Senate majority refused to give the American people relief from the
individual mandate and treat President Obama and his political
appointees the same as all other Americans when it comes to Federal
employees and officials being covered by health insurance.
In addition to negotiating an end to the government shutdown,
Congress now needs to deal with the approaching debt limit. This will
be the sixth debt limit increase in President Obama's 5 years in
office. During President Obama's term in office thus far, the United
States has added $6 trillion to our national debt.
We had 4 consecutive years with annual deficits above $1 trillion.
Federal debt held by the public is now 73 percent of our gross domestic
product. The historical average has been about 40 percent of GDP. This
unsustainable debt path is threatening our economic growth and our
stability.
This administration is quick to point out that the deficits have
fallen faster than at any point since World War II. They fail to
mention, however, that the deficit remains over $600 billion this very
year from highs near $1.4 trillion. Remember to compare the $600
billion for this year with the largest annual deficit under President
Bush of $458 billion.
Much of the recently improved deficit picture is also due to the
spending cuts imposed by the Budget Control Act of August 2, 2011, that
was enacted as part of the last debt ceiling increase. There is no
better time to negotiate policies to address our fiscal problems than
when debating debt ceilings.
But the President and the Secretary of the Treasury maintain that
they will not negotiate on the debt limit. There happen to be families
all over this country which, because of the slow economy and
unemployment, are being forced to make tough decisions to make ends
meet.
A lot of those families are looking at their budgets, looking right
now trying to determine which expenses can be cut. Maybe they will try
to reduce their cell phone bill or perhaps they will cancel a newspaper
or a magazine subscription or perhaps eat at home instead of eating at
restaurants.
The point is, when families face tight budgets and increasing debt,
they look for ways to cut spending and get their fiscal house in order.
That is the prudent thing to do. When bills come due, families make
tough decisions on where to trim the budget. That is a family example
of the Federal Government's legitimacy for looking at our spending.
At the very same time we are trying to increase the debt limit, we
need to consider possibilities and make compromises to get our budget
deficit down. Why can't the Federal Government then do the same? Why
can't we use this opportunity to put our Nation on a sound fiscal
course? Why can't we work right now to enact policies that will
hopefully then negate the need to take on more debt.
This seems to be a reasonable proposition, to do this when you are
talking about increasing the federal debt. Treasury Secretary Lew and
his boss, President Obama, have repeated the talking points that
negotiating deficit reduction policies on a debt ceiling increase is
unprecedented. They claim that now is not the time to negotiate our
budget and fiscal problems.
The President stated last month:
You have never seen in the history of the United States the
debt ceiling or the threat of not raising the debt being used
to extort a President or a governing party and trying to
force issues that have nothing to do with the budget and
nothing to do with the debt.
The President just does not understand history or even recent history
when he makes such a statement. President Obama and Secretary Lew can
make this claim as much as they want, but it does not make sense. It is
not true. The Washington Post fact checker gave this exact quote from
President Obama four Pinocchio's, which rates the statement as a
``whopper.''
The Post indicated that since 1953, Congress at times has used the
debt limit as a way to force concessions by the executive branch on
spending. It also states that the Congress has used the debt limit on
many occasions to force changes in unrelated laws.
At least four major pieces of deficit reduction policies were enacted
as part of a debt limit increase: Gramm-Rudman, 1985; the Budget
Enforcement Act, 1990; the Balanced Budget Act, 1997; the Budget
Control Act, 2011. So the facts are very clear. The debt limit has been
used in the past as a means to enact different deficit reduction
policies and other reforms. Surely the President knew these facts when
he made that statement that the Washington Post fact checker rated as a
``whopper'' with 4 Pinocchio's.
According to the Congressional Research Service, since 1978, Congress
has voted to raise the debt ceiling 53 times: 27 of those times or 51
percent of the time the debt limit increase was tied to reforms. I
questioned Secretary Lew on this point this morning during our
Finance Committee hearing. Unfortunately, I got the same tired talking
points that have been proven time and again to be wrong.
It is difficult to understand how an administration can expect us to
take them seriously on the offer of future negotiations when they
misrepresent such simple facts. The President and Congress must come to
the table and negotiate policies to get our fiscal
[[Page S7379]]
house in order. Does that put everything on the shoulders of the
President of the United States? Absolutely not. It is just a fact that
in this town, with our form of government, for over 225 years
Presidential leadership is a very important part of the legislative
process.
We have taken steps to address discretionary spending. We did that in
2011 with the Budget Control Act. Now it is time to tackle
entitlements. Without reform, entitlement spending will continue to
consume our budget. They will begin to squeeze out spending on
discretionary spending, such as defense, education, and infrastructure.
According to the CBO, spending on entitlements will double as a
percentage of GDP from the historic average of 6.9 percent to 14.2
percent by 2038.
What does this mean for our economy? It means we will need to borrow
more and more to fulfill our obligations. That will crowd out money
that would otherwise be loaned in the private sector. This will lead to
slower growth, less prosperity. It means that future generations may be
less well-off than previous generations. The longer we kick the
entitlement can down the road, the bigger the fiscal problems become
and the harder the solutions will be.
It is time to make tough decisions and once and for all strengthen
and secure these programs for future generations. These reforms will
not take place without presidential leadership. The President must now
demonstrate courage and the political will to put our Nation on a sound
fiscal course.
That is not just the President's responsibility. That is a shared
legislative responsibility between that end of Pennsylvania Avenue and
this end. But it requires leadership that will bring people together.
It requires compromise. It requires concession. Most of all, we need to
get back to basics. We have to be sitting at a table across from each
other negotiating. We will not be able to address those looming fiscal
problems if President Obama is refusing even to sit across the table
from Members of Congress, both Republicans and Democrats.
So I hope he will reconsider his ``no negotiation'' strategy so that
we can reopen the government, deal with the debt ceiling and begin to
address our unsustainable long-term fiscal challenges.
I yield the floor.
The PRESIDING OFFICER. The Senator from Delaware.
Mr. COONS. Mr. President, I ask unanimous consent that the time until
7 p.m be equally divided between the two leaders or their designees,
with Senators on the majority side limited to 10 minutes each.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. COONS. Mr. President, I have heard a number of speeches from my
colleagues on the floor today, both while presiding and in the last few
moments, that call on President Obama for Presidential leadership to
help us reopen the government, address our serious long-term fiscal
issues, and move us forward.
I want to note for the folks who might be watching that the President
is at this very moment sitting with the leadership of the Republican
caucus in the House of Representatives. Tomorrow morning, I believe, he
has invited the Republican Members of this body to the White House for
conversation.
I think we agree. One of the core challenges we face as this Federal
shutdown goes into, I believe, its 10th day is discerning exactly why
the Federal Government is still shut down. When initially taken over
the cliff into the shutdown, it was to prevent the implementation of
the Affordable Care Act. That is what a number of Senators said on this
floor was their purpose. Now, many days and many unintended and
unexpected harmful consequences later, we are told what this was really
all about was to force the President to negotiate.
I serve on the Budget Committee. We passed, more than 200 days ago,
more than 6 months ago, a budget on this floor, and we have tried to go
to conference on that budget now 21 times.
Yet each time it was blocked, objected to by a small number of
Senators from the other party.
Frankly, my expectation, my hope is that we will return to a rational
rules-following process here, reopen the government, not default on our
national debt, and begin those serious negotiations, those Budget
Committee negotiations that are long overdue to deal with the very real
challenges that are facing our country.
I wanted to speak today about one of the consequences of shutting
down our Federal Government. We see new ones every day, and we hear
about them on the Senate floor. As the days drag on, we hear more and
more about the impacts of the shutdown, sometimes with surprise,
sometimes with regret, sometimes with outrage.
There is a lot on the line, and we have heard a lot about what the
shutdown means for the various functions of the executive branch and of
the legislative branch. I have heard colleagues come and speak about
the Nuclear Regulatory Commission, about the FDA, about its impact on
higher education, its impact on families, and its impact on small
businesses. I have heard many folks come to this floor and comment on
how the executive branch and its functions that affect communities and
families all over this country are affected by the shutdown.
We have heard from our constituents who are trying to reach Senators
and are trying to seek our help with a variety of Federal services.
They are frustrated that the legislative branch is largely shut down,
but there is another branch to our three-branch coordinate government.
Absent from this debate and discussion is how the shutdown is affecting
the judicial branch of our government.
When the Federal Government shut down 10 years ago, the Federal court
system was initially seemingly largely unaffected because they had
enough funds in reserve to remain open for 10 business days--a period
that will come to an end early next week.
On Tuesday the Federal judiciary of the United States will run out of
the reserve funds it has been using to stay open. The big question is,
What happens then?
The chief judge of the bankruptcy court for the District of Delaware,
my home State, told me:
We are really in an uncertain situation, particularly when
it comes to employees. I am fearful for them and how they are
going to be able to pay for rent and mortgages, and provide
food and day-care for their families.
This is uncharted territory for our Federal judiciary. When the money
runs out, Federal, circuit, and district courts will each be on their
own, much like each Senator who has to choose which of his employees or
her employees are essential, deemed vital, and need to stay, and which
should be furloughed and stay home, uncertain whether they will be
paid. Each district court and circuit court will figure out on its own
how to keep the lights and which employees will keep working without a
salary.
As the chair of the Senate Judiciary Subcommittee on Bankruptcy and
the Courts, I have heard from a number of Federal judges this week who
are frustrated by the amount of time they are spending trying to figure
out what the shutdown means for their courts and their employees rather
than doing the job for which they were confirmed, which is to judge
cases.
This is an enormous distraction, a profound waste of time. This is
not advancing our core objective, which should be growing our economy,
strengthening our country, confronting the fiscal challenges in front
of us, and working together to achieve some principled compromises in
the Congress of the United States. In my view, Federal judges should be
deciding cases, not deciding how to keep their courthouses running
during this Federal Government shutdown. This needs to end. It could
end literally today in a matter of minutes if Speaker Boehner would
bring to the floor and allow a vote on a bill sent over from this
Senate more than 10 days ago that would allow the Federal Government to
reopen.
The judicial branch is not another Federal agency. It is not a
program that can be suspended or a benefit that can be delayed. It is a
branch. The Federal court system was created in our Constitution as the
third pillar of our democracy. It is an independent branch of
government whose fundamental mission is being undermined by folks, some
of whom claim to love and to rigidly interpret the Constitution. Yet
the consequences for our constitutional order of this senseless
shutdown, I am
[[Page S7380]]
afraid, will soon become clear in the days ahead.
The subcommittee has heard from a number of Federal judges and clerks
this week. I must warn you there are a lot of unanswered questions
there. The path forward is murky. The central question in the courts--
as it was here in Congress and in the executive branch--is who is
considered ``essential.'' Is it the people directly involved in the
resolution of cases or are the staff who support that process also
expected to work without pay?
Here is the type of question our judiciary was dealing with today
instead of resolving disputes or working on long-term cost-saving
measures. Evidence in our Federal courts these days is typically
presented electronically to jurors rather than handing out photocopies,
which is great as long as the technology is working in the courtroom.
Case files are processed electronically these days as well. But what if
there is a problem? What if the technology doesn't work and a trial is
disrupted? At what point does a technological glitch become a
legitimate due process issue? If the courtroom technology can't get an
upgrade to fix a bug, will it result in a costly mistrial? The
Constitution and the Sixth Amendment guarantee criminal defendants a
right to a speedy trial. What happens when our courts can't live up to
that Sixth Amendment guarantee because of this ongoing Federal
shutdown?
The problem is equally severe in civil and bankruptcy matters. With
the DOJ's Office of the U.S. Trustee in shutdown status, the number of
trustee attorneys in Delaware has been cut from seven to two. This can
dramatically slow the bankruptcy process and leave real jobs and real
lives hanging in the balance as cases are unresolved and as resolutions
don't move forward.
This raises another fundamental question. At what point in this
ongoing senseless shutdown does our civil justice system fail to live
up to America's promise as a free market economy grounded in the rule
of law?
When an investor anywhere in the world looks to make a bet on a new
company, a new idea, that investor will obtain certain rights in
exchange. Those rights may include a share of equity or a priority
right in the event of liquidation. What gives those rights meaning is
ultimately a highly functioning, impartial, and reliable court system.
That historically has been one of our great advantages competitively in
the world economy. Our courts, even while plagued by persistent
vacancies, lack of new authorized judgeships, and the sequester,
continue to perform this vital function. Without these courts, these
rights mean nothing. Without the reliable enforcement of these rights,
there is no more new investment, no more new job creation, and no more
new ideas successfully brought to market. We are not the only country
in the world competing for investment capital and for ideas. When we
undermine our civil courts, we are being hostile to those very
investors who could help get our economy back on track.
The Federal shutdown is already slowing the resolution of civil cases
involving the Federal Government. Clerks at district courts around the
country have confirmed to my subcommittee that the Department of
Justice is requesting continuances broadly and across-the-board and
trying to juggle the demands of their caseloads with the constraints of
this reckless shutdown. Think about it. Social Security appeals, civil
forfeiture cases, business disputes, consumer protection cases,
Medicare fraud cases, incidents of employment discrimination--they are
all being pushed to the background. This shutdown is bringing new
meaning to Dr. King's famous words: ``Justice too long delayed is
justice denied.''
Only this morning I heard from the head of Delaware's district court,
chief judge Gregory Sleet. He said, in essence--no insult intended, but
his observation was that Congress is letting our country down. The
subcommittee also spoke with a district court clerk yesterday who
said--and I thought this was particularly striking--he was glad he was
nearing retirement so he could escape the dysfunction of the Federal
Government and our ongoing, seemingly routine manufactured crises.
This shutdown is exacerbating what is a more profound problem--a
disregard for the upkeep of our Federal judiciary. More than 90 Federal
judgeships are vacant. There are 39 vacancies that are deemed
``judicial emergencies.'' We need to do more to support and sustain the
staffing, quality, and future investment that is required to make our
Federal courts work as well as they possibly can.
I wish to make a point or two in conclusion. First, one of the
essential questions every district court and circuit court will face is
which of its employees are essential. After all of the cuts of the
sequester and all of the burdens and challenges facing our Federal
Government, aren't all the employees of our Federal judicial system,
this separate branch, essential? The chief judge for the Third Judicial
Circuit of the United States believes so, and I agree with him. This
morning he announced that nearly ``all functions, with few limited
exceptions, are essential . . . .'' I join the chief judge of the Third
Judicial Circuit and urge other circuits to follow suit and to
recognize that this independent third branch of our constitutional
order is essential.
Last, this shutdown has dragged morale in our courts and our court
system to a new low. We in Congress are blessed with a record number of
attorneys who serve in Congress. It is my hope that this body
recognizes the unique value of our Federal court system. Our democracy
cannot afford to furlough justice. We cannot shut the doors to our
courthouses. It is my hope that Speaker Boehner, following the
conversation unfolding at the White House, will come back and put to
the vote an action that will allow the courts and this country to get
back to work.
I yield the floor.
The PRESIDING OFFICER. The Senator from Oklahoma.
Mr. COBURN. I understand that the order of the day is that time is
divided equally until 7 o'clock, with the majority setting a limitation
of 10 minutes but no limitation on the minority?
The PRESIDING OFFICER. The Senator is correct.
Mr. COBURN. I rise to speak about the issue in front of us. I want to
spend a few minutes putting things in context. I won't repeat things I
have said routinely on the floor, but I think it is important for the
American people to understand where we are in our country.
Using generally accepted accounting principles--these aren't my
numbers--we have almost $126 trillion in unfunded liabilities and we
have $17 trillion worth of debt. We have a lot of obligations in front
of us. If we add up every asset in the United States--all the bank
accounts, all the lands, all the possessions, everything we own, plus
what we own outside of the United States--it comes to $94 trillion. In
essence, we are almost $50 trillion in the hole. That is called a
negative net worth.
I appreciate the comments of my colleague from Delaware. I have the
greatest admiration for him. I am not one of those who think we should
be in shutdown. I also am not one of those who think we should just,
without any solution to our problem, raise the debt limit.
I would also note that we don't have to have a budget right now in
the Senate because we agreed to the Budget Control Act, which sets the
discretionary spending levels for the next 10 years in this country.
They are set by law. What is important is that appropriations bills
come through the committees--the House first and the Senate second--so
that we can address the issues. We didn't do that in the Senate. They
did about half of them in the House. We wouldn't have a continuing
resolution--which, by the way, I think all of us agree is very
difficult for our Federal employees to operate under.
But I wanted to make a couple of points. One is that in July of 2011,
after 7 years of oversight, I put out $9 trillion of what I think are
commonsense eliminations and changes we could make that today would put
us at a $200 billion surplus instead of a $750 billion deficit. Those
savings were $3 trillion total in discretionary spending, $1 trillion
in defense spending, $2.7 trillion in terms of modernization of our
health entitlement programs, and $1 trillion from the Tax Code. We
actually have earmarks in the Tax Code for those who are well-heeled
and well-connected--a benefit--and the average American gets nothing.
There are interest payment savings of $1.3 trillion
[[Page S7381]]
and a 75-year solvency for the Social Security. That was put out 2\1/2\
years ago. Very little of it has been used. As a matter of fact, most
people haven't read it. It was put out in a binder. We didn't print
many binders because I am so tight, I don't want to print that many
binders, but this is what it looks like. It is online. People may read
it and see if it makes common sense. Most people won't.
I am going to spend some time outlining some of the things that came
from that and some of the excesses of the Federal Government.
Most Americans know we are not efficient. They understand that we are
not doing a good job spending their money, but they have no idea how
bad it really is. I have actually spent the last 9 years in oversight
of almost every segment of the Federal Government. None of us can be
proud of the way we spend the money. Most of it is very well
intentioned, honorably intentioned, with minimal oversight, minimal
control, with over $150 billion of fraud every year, and I am talking
pure fraud, and with $250 billion of real duplication--programs that do
exactly the same thing, run by different agencies, with no
consideration to streamline those. None of those things have been
considered.
We won't even do tax reform to get rid of unemployment for
millionaires. What people don't realize is we paid $60 million out over
the last 2 years to people who were making $1 million a year. We are
paying them unemployment. They hardly need the unemployment check. Yet
we won't even regulate those kinds of things.
I think we have failed to do our job, and that is a Republican and
Democratic thing. That is us. That is not a partisan statement.
The last time the President signed an individual spending bill into
law--an individual appropriations bill--was 4 years ago. Four years ago
was the last time he signed an independent appropriations bill into
law. That tells you Congress hasn't done its job. We haven't passed
them.
According to studies, if you poll the American people in terms of the
sequester, less than one in four felt any impact at all from the
sequester. And I think the sequester is a terrible way to determine
spending. I voted against the Budget Control Act for that very reason,
because we are not responsible enough to do the management and the
oversight. But most Americans see no impact from it, and that is
because in what we do there is so much waste and mismanagement. There
is so much duplication, there is so much error that we could easily
take that out and most people wouldn't notice it. They haven't noticed
it.
Some of our Federal employees have noticed it, but the average
American, 76 percent of them have never felt any impact from it
whatsoever. They do not even know it happened. There has been no impact
on their daily life. Increasing the debt limit and passing another CR
isn't going to do a thing to eliminate government waste, fraud, or
duplication.
It is time we kind of reassess where we are. One of the reasons I am
against a debt limit increase is because it takes the pressure off
Members of Congress to make the hard choices. If we raise the debt
limit, that means we don't have to make the hard choices and we will
run a deficit again and again. Toward the end of this decade, just 7
years from now, the deficits start climbing well above $1 trillion
again--$1 trillion a year. Our deficit is growing twice as fast as our
economy is--our debt is. It is growing twice as fast as our economy is.
So we are going down in a hole.
We ought to be about--Democrats and Republicans--holding hands and
saying let's stop this nonsense. Let's put some brakes on ourselves.
Let's put in some limitations so we don't continue to fall prey to
ducking the very difficult decisions facing this country. Households do
that, businesses do it all the time. They assess where they are, they
assess how deep the hole is, because nobody gives them the ability to
say: You don't have to make those hard choices, we will give you more
borrowing power. What they do is make those hard choices. We refuse to
do so.
Another example. We just finished year end and there is this syndrome
in Washington called ``use it or lose it.''
Mr. President, I ask unanimous consent to have printed in the Record
an article from the Washington Post with the lead-in ``As Congress
fights over the budget, agencies go on their `use it or lose it'
shopping sprees.''
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Washington Post, Sept. 28, 2013]
As Congress Fights Over the Budget, Agencies Go on Their ``Use It or
Lose It'' Shopping Sprees
(By David A. Fahrenthold)
This past week, the Department of Veterans Affairs bought
$562,000 worth of artwork.
In a single day, the Agriculture Department spent $144,000
on toner cartridges.
And, in a single purchase, the Coast Guard spent $178,000
on ``Cubicle Furniture Rehab.''
This string of big-ticket purchases was an unmistakable
sign: It was ``use it or lose it'' season again in
Washington.
All week, while Congress fought over next year's budget,
federal workers were immersed in a separate frantic drama.
They were trying to spend the rest of this year's budget
before it is too late.
The reason for their haste is a system set up by Congress
that, in many cases, requires agencies to spend all their
allotted funds by Sept. 30.
If they don't, the money becomes worthless to them on Oct.
1. And--even worse--if they fail to spend the money now,
Congress could dock their funding in future years. The
incentive, as always, is to spend.
So they spent. It was the return of one of Washington's
oldest bad habits: a blitz of expensive decisions, made by
agencies with little incentive to save.
Private contractors--worried that sequestration would
result in a smaller spending rush this year--brought in food
to keep salespeople at their desks. Federal workers quizzed
harried colleagues in the hallways, asking if they had spent
it all yet.
``The way we budget [money] sets it up,'' said Sen. Tom
Coburn (R-Okla.). ``Because instead of being praised for not
spending all your money, you get cut for not spending all
your money. And so we've got a perverse incentive in there.''
But, Coburn said, ``nobody's talking about it but me and
you.''
Coburn said he had meant to mention it in his floor speech
Wednesday. Then, when he got to the podium, he forgot.
``Use it or lose it'' season is not marked on any official
government calendars. But in Washington, it is as real as
Christmas. And as lucrative.
And--it appears--about as permanent. ``We cannot expect our
employees to believe that cost reduction efforts are serious
if they see evidence of opportunistic spending in the last
days of the Fiscal Year,'' President Lyndon B. Johnson wrote
to underlings in May 1965. Even then, Johnson said an end-of-
year binge was ``an ancient practice--but that does not
justify it or excuse it.''
Today, government spending on contracts still spikes at the
end of the fiscal year on Sept. 30.
In 2012, for instance, the government spent $45 billion on
contracts in the last week of September, according to
calculations by the fiscal-conservative group Public Notice.
That was more than any other week--9 percent of the year's
contract spending money, spent in 2 percent of the year.
Much of it is spent smartly, on projects that had already
gone through an extensive review.
But not all of it.
In 2010, for instance, the Internal Revenue Service had
millions left over in an account to hire new personnel. The
money would expire at year's end. Its solution was not a
smart one.
The IRS spent the money on a lavish conference. Which
included a ``Star Trek'' parody video starring IRS managers.
Which was filmed on a ``Star Trek'' set that the IRS paid to
build. (Sample dialogue: ``We've received a distress call
from the planet NoTax.'')
``That is a major problem,'' acting IRS commissioner Daniel
I. Werfel told Congress in June, explaining the role of ``use
it or lose it'' in that debacle.
Other end-of-year mistakes are less spectacular--but they
still cause problems. One recent study, for instance, found
that information technology contracts signed at year's end
often produced noticeably worse results than those signed in
calmer times.
And late-September waste also weighs on its witnesses,
federal workers. After President Obama set up an online
suggestion box for federal workers, many asked to get rid of
the ``use it or lose it'' system. They suggested ``rolling
over'' money for use in the next year. And they listed dumb
things they had seen bought: three years' worth of staples.
Portable generators that never got used. One said the
National Guard bought so much ammunition that firing it all
became a chore.
``When you get BORED from shooting MACHINE GUNS, there is a
problem,'' an anonymous employee wrote.
``People want to do the right thing,'' said Dean Sinclair,
a former State Department employee who is crusading to change
the system. ``It's not that the federal workforce is filled
with bad people. The system sort of forces them to make bad
decisions.''
He suggests giving bonuses to managers who return leftover
money to the Treasury at year's end. ``It takes time and
effort to waste money,'' Sinclair said. ``Remember that.''
[[Page S7382]]
Obama, like presidents before him, has exhorted agencies to
plan better and avoid rushed decisions at year's end. But the
White House says Congress is making that job harder.
``Twenty-five percent of my business, right, will happen in
this month. Twenty-five percent of my year,'' said Art
Richer, the president of ImmixGroup, a contractor in Tysons
Corner that helps software and computing companies seeking
government business.
September in Washington used to be a time for selling face
to face. Contractors visited the Pentagon. Small-town mayors
queued up in the hallways at the Commerce Department, waiting
to make a late-night pitch for grants.
But those buildings are off-limits now. So you sell from
your desk. You sell with your voice. You sell with empathy,
for the poor harried bureaucrat on the other end of the line.
``Answer the phone smiling,'' Richer tells his people.
Of course, the feds were stressed.
``We see them in the hallway, and you go, `How much money
are we going to lose?' '' one Army officer said this past
week. That officer was involved in setting budgets for future
years, and the meaning was clear: How much money are you not
going to spend? Whatever that number was, it would be taken
out of budgets for fiscal 2015, too.
This is not normal math. But this was not a normal time in
Washington: You didn't save money to spend it later. You
spent now, to spend later. ``They know they're under the
gun,'' the officer said, who spoke anonymously to talk about
internal budgeting discussions.
On Monday, Immix began bringing its sales team three
catered meals a day. If workers walked to Subway, they might
lose a sale. On that day, Immix handled $16 million in
business. A normal Monday is about $2 million.
Across the government, agencies were making big-ticket
purchases--buying things with this year's money that could be
used next year.
On Monday, VA paid $27,000 for an order of photographs
showing sunsets, mountain peaks and country roads. They would
go into a new center serving homeless veterans in Los
Angeles; a spokeswoman described the art as ``motivational
and calming, professionally designed to enhance clinical
operations.''
On Tuesday, the USDA bought $127,000 worth of toner
cartridges (``end of year,'' the order explained). VA spent
another $220,000 on artwork for its hospitals.
On Wednesday, the Coast Guard paid $178,000 for cubicle
furniture, replacing high-walled cubes with low-walled ones
to improve the air flow in a large office area.
``Other higher-priority projects were not able to be
executed, so they moved [money] to this lower-priority
project'' before the year's end, said Coast Guard spokesman
Carlos Diaz. ``The money was going to be spent anyway.''
On Thursday, VA was buying art again. It spent $216,000 on
artwork for a facility in Florida. In all, preliminary data
showed that the agency made at least 18 percent of all its
art purchases for the year in this one week. One-sixth of the
buying in one-52nd of the year.
On Friday, the end was in sight.
``I feel good. Four days, right?'' said Corey Forshee, a
contracting officer at Joint Base Andrews in Maryland.
Forshee was part of a team at Andrews that had done its best
to beat the September rush.
The commander, trying to avoid a last-week rush, set his
own deadline of Sept. 20. The pizza came early. The
chaplain's office visited early (``use it or lose it'' season
is traditionally stressful enough to get the chaplain
involved). The buying was nearly done.
Now, they had to wait for the last act of the last act: the
``fall-out money.''
This was cash that other parts of the Air Force had not
been able to spend. It would be redistributed to this office
at the last minute.
``We're waiting for money for that,'' Forshee said, going
down a list of unfunded projects. A roof for the workout
area. A bathroom renovation. ``Just waiting for money,'' he
repeated.
Across Washington, everybody had to wait.
``It's going to come down to Monday,'' said Richer, at
ImmixGroup. On Friday, he said his sales had been about equal
to last year's, despite worries about sequestration.
On Monday, Richer's people will sell until midnight. Then
they will keep selling. ``Money rolls across the continent,''
the feds say. Cash not spent in Washington might be spent by
federal offices in California in the three hours before it is
midnight there.
When it is midnight in California--3 a.m. in Washington--
they will keep on. There are federal offices in Hawaii, after
all. And it will still be three hours until midnight there.
Mr. COBURN. Let me give the American people a little taste of what we
spent in the last week.
In the last week, the State Department spent $5 million on new
glassware for all our embassies. Was that something we needed to do?
No. Was it an absolute requirement that we couldn't operate our
embassies without another $5 million worth of glassware? No. The State
Department had $5 million, and if they didn't spend it, they would be
accused of not needing all their money. So they spent $5 million on
something that was not absolutely necessary.
In the last week, VA spent more than $560,000 on artwork. As a matter
of fact, in the last 2 days. I mean, we are bankrupt. We are running
three-quarters of a trillion dollar deficit and we are going to buy a
half million dollars worth of artwork because if we don't spend it on
something we won't get it next year? Where does that fit in with any
common sense? Where does that fit with the integrity or the honor that
will preserve the future of our country? It doesn't. We have to change
that.
We have not done things that incentivize Federal employees not to
spend it and we will give you part of it next year for your budget and
the rest of it against the debt our kids will have.
The Coast Guard, in the last day, spent $178,000 on cubicle furniture
rehab. They signed a contract on the last day and sent the check out
the door. It may be it needed to be rehabbed, but they made sure they
got it in this year to consume the money.
The Agriculture Department, in 1 day, spent $144,000 on toner
cartridges. Think about it--$144,000. These are all small amounts
relative to Washington numbers, but the principle is exactly the same.
On the night before the government closed, the last day of the fiscal
year, the Pentagon awarded 94 contracts right before midnight. I can't
get the information on what they were yet, but I will. I will find out
if they were necessary, if it is something that we needed to have in
light of our debt and our dysfunction.
They also spent $5 billion on everything from robot submarines,
Finnish hand grenades only hours before the closing of the fiscal year.
So they spent the money, not saying it was a priority, other than it
was a priority to spend all the money we have because we are afraid we
might not get enough money next year.
The Defense Logistics Agency spent $65 million for military helmets
on the last day, $24 million for traveling wave tubes to amplify radio
signals.
How do we think the hundreds of thousands of people who are
furloughed right now feel about us spending money that way when that
could be paying them and they could be working?
We are sick. We need a wakeup call.
Let me cite a couple others from the Department of Defense just to
show you how parochialism plays into this. Twelve brandnew--brandnew--
airplanes, C-27J Spartans, were delivered right before the end of the
year. Guess where they are. They are in mothballs in Arizona in the
desert because we don't need them. But we spent $567 million for
something we didn't need. So what do we do? We store them in the desert
because the humidity is so low. So we take them right off the
manufacturing line and fly them right to storage. They are not needed.
We have the same problem on the C-27As in Afghanistan. We spent $596
million for those. We finally canceled the contracts because the
supplier couldn't supply the spare parts. And you know what the
military is getting ready to do, rather than bringing them home or
giving them to somebody else? They are getting ready to cut them into
pieces in Afghanistan--$\1/2\ billion worth of airplanes.
Where is common sense in this country? Why wouldn't we think about
maybe selling them to somebody else and getting some of our value back?
But we are thinking about cutting them up.
Then there is the M1A1 Abrams tank. We had testimony from Secretary
of the Army John McHugh saying this is the most modern piece of
equipment the military has. Its average age is less than 2\1/2\ years
old. We don't need any more M1A1 Abrams tanks, but they are still being
produced this year to the tune of $3 billion so we can keep people
employed in a factory making something we don't need.
Isn't that wonderful? Isn't that a great way to steal the future of
your kids? But I am sure the politicians where they are made are very
happy we are continuing to buy something we don't need because it helps
the economy in their area.
Despite the sequester, the National Science Foundation is still
funding
[[Page S7383]]
hundreds of products and studies that do not fit with common sense or a
priority. Even if they fit with common sense, they do not fit the
priority of where we find ourselves financially.
The Department of Agriculture grants that were announced in the last
week before we shut down, before we went to the next fiscal year and
don't have a continuing CR--let me read this and see if you think this
is how we should be spending our money: 35 wine-tasting projects, wine
trail smart phone apps. We are going to supply the money for these. The
Federal Government is going to supply the money for these so you can
have a good time when you go to whatever vineyard it is. We are going
to take Federal taxpayer money.
Those are private businesses. Yet we are spending our grandchildren's
money on that?
Four Christmas tree initiatives: Virginia Christmas trees, Michigan
Christmas trees; training seminars on how you sell Christmas trees.
You know, Christmas trees are in pretty good demand around Christmas.
I am not sure you are going to markedly increase the demand for
Christmas trees by learning how to sell them better.
The USA pear road show to China; social media for apples, radio
advertisements--paid for by the Federal Government--for blueberries
from New Jersey, strawberries, organizing a maple weekend in the state
of our Presiding Officer--Massachusetts.
We are spending our grandkids' money, money we are borrowing, to do
things that are not a priority. They may be a priority to those folks
who get the money, but in terms of our national priorities, they are
not anywhere close.
Other examples of ongoing government waste and duplication not
eliminated but instead funded by the CR: $30 billion for 47 job
training programs that aren't working. They are not working. The GAO
says they are not working, we know they are not working, and all of
them duplicate one another except for three. But we are continuing to
spend $30 billion a year on them.
The House has passed a skills act which consolidated all of them. We
won't even take it up over here. We won't even look at it. It would
save us about $7 billion or $8 billion a year. They read the GAO
report, they acted on it, but we won't.
We have 20 Federal programs across 12 different Federal agencies and
offices for the study of invasive species. I think we ought to study
invasive species, but I don't think we need 12 different Federal
agencies involved in it. And I don't think we need 20 programs on it.
I mentioned the unemployment for millionaires. That is in the CR. We
didn't do anything to fix that.
There is $30 million for 15 different financial literacy programs at
15 different agencies. We just created a new one at the Consumer
Financial Protection Bureau. Rather than eliminate the ones that are
not working, we are creating more of them.
There is $947,000 in the NASA budget to talk about foods that can be
eaten on Mars. We are 30 years away from going to Mars. Yet we are
going to spend $1 million of taxpayer money we don't have to think
about foods we might eat 30 years from now on Mars? I don't think that
is a priority for us right now.
There is $3 billion on 209 science, technology, engineering, and math
programs at 13 different agencies. Think about that. We all know we
need to get it together when it comes to education in our technical and
scientific areas. But why would we have this many--209--programs, with
209 different sets of administrators and 209 sets of reporting?
There is billions of dollars in bonuses and Federal payments to
contractors who fail to pay their own taxes. We have tried to pass in
here multiple times that if you are a contractor with the Federal
Government and you are not paying your taxes, you are either going to
lose your contract or that tax debt is going to be reduced from what we
pay you. But we can't get that through. So people who aren't carrying
their fair share are still reaping the benefits of contracting with the
Federal Government even though they are tax cheats.
Here is one small one, but this one really gets me. It is bigger than
you would think. We have an agency that spends $66 million a year. It
is the NTIS. I asked GAO to study them. They studied them. In their
report this year, GAO explained there is an office in the Department of
Commerce, which is this office, that sells reports to other agencies.
When we had GAO study this, we found 74 percent of the reports they
sell to other agencies you can get from this one Web site for free.
Their budget hasn't gone down, it has expanded. But the need for the
agency is going away. So why are we continuing to spend $66 million--
which is what we directly spend and doesn't count what they collect
from all the other agencies--for only 26 percent of the information
that is not available other than at Google? It makes no sense. It is
called the National Technical Information Service, and it was
established in 1950, tasked with collecting and distributing certain
reports.
GAO noticed this 10 years ago; they noticed it again now. Congress
has done nothing. What GAO estimates is 621,917 of the 841,000 reports
this agency puts out are available for free on the Internet. Go to
Google and every American can find it for free. All the agencies that
are paying can find it for free. But we haven't eliminated this agency.
I will stop with that, and I will make a couple points.
It is wonderful that we have a difference of opinion in the Congress,
but we can't have a difference of opinion about where this country is
headed. We are bankrupt. People don't like to say that word. This is
America; we couldn't be bankrupt. But from a balance sheet standpoint
and from an income sheet standpoint, we are bankrupt.
So what are the American people to do about this? Are we to continue
to spend money every year to the tune of $500 billion to $1 trillion
and not make the tough choices or should we do something about it?
Should there be a resolution to this addiction of spending money we
don't have on things we don't need?
As a physician, for every person I have ever encountered who had an
addiction, the first step in confronting that addiction is to recognize
the reality of the addiction. Quite frankly, Members of Congress
haven't done that. The American people have. They are figuring it out.
The reason I know we haven't recognized the addiction and we are not
worried--we can say our debt can be such a percentage of GDP. We don't
have to live within our means. We can handle it as long as we don't get
above a certain percentage. That is the rationalization of an enabler
in a family who allows somebody to continue to be addicted.
Every addiction needs a 12-step program, and the first step is
recognizing that we are addicted. And we are. So one of the things the
American people are starting to ask about us, given that we can't even
pass a CR--and we are going to pass a debt limit increase and not make
any of the hard choices. They won't be made this year. They won't be
made next year. The only time we are going to make the hard choices is
when the international financial community forces us to make those.
But what Americans are asking now, the confidence is so low, is who
decides? Do we really represent their thoughts about spending, about
priorities, about waste?
If we recognize that all this is there--these trillions and trillions
of dollars over 10 years that could be changed without any marked
impact on America, and we don't do anything about it--what they are
asking is who is deciding? Who decides? Do I represent my constituents
if I won't try to change these things?
The confidence level in us, as reflected in the polls, and when you
talk to anybody, is they don't have any confidence in us because we
won't admit to our addiction, come together, get on the wagon and solve
the addiction.
A long time ago in this body I said there was a rumble out in
America. It wasn't long after that the tea party came along. I know
they are thought about with some disdain. They are not crazy. What they
have done is lost confidence and they want something changed. But it is
not just the tea party anymore. It doesn't matter your
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political persuasion. They think we don't get it, that we are not
willing to make the sacrifices of our own political careers to solve
the problems. What we need to be doing, in my opinion--and my
prescription for us is, American people, don't let us get out of the
box by letting us raise again the shackles that are going to be
increased by increasing the debt in this country. Because if we do--and
we will--what will happen is we won't perform. We won't make the tough
decisions. We won't make the sacrifices. There will be no sacrificial
leadership on the part of Members of Congress. Their sacrifice will be,
How do I get reelected, rather than I don't care if I lose; our country
needs to be fixed, and we need to be about addressing that even if it
costs me a political position.
When it is all said and done and America has blown through and we see
the real results of our profligate spending and the hyperinflation and
the marked decrease in the standard of living in this country, what
they are going to remember about us is there was a challenge and we
didn't rise to it. We didn't rise to the occasion. We saw short term
and we forgot and ignored the long-term consequences of our actions.
My hope is that will change on both sides of the aisle; that we would
truly embrace a long-term picture and recognize the tremendous
difficulty. We have heard all this talk about how we have to raise the
debt limit; otherwise, we are going to default. We are not going to
default on our bonds, ever. It requires less than 7 percent of our
total cashflow that comes into this country. We use that as a scare
tactic.
I am not saying we should necessarily not increase the debt ceiling,
but we sure shouldn't increase it until we have made a commitment that
we are going to solve the problem, because we will be back here in 1\1/
2\ years doing exactly the same thing with exactly the same excuses
that say why we can't.
What America is wanting to hear from us is why we can. They are not
wanting to hear about division. They are wanting to hear about unity.
They are wanting to hear about what pulls our country together rather
than tear it down. The best way to show them is that we are serious
about solving this problem. I hope that is so.
Mr. President, I yield the floor and I suggest the absence of a
quorum.
The PRESIDING OFFICER (Mr. Franken). Without objection, it is so
ordered.
Mr. BOOZMAN. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BOOZMAN. Mr. President, this past weekend I was with a group of
heroes from the ``greatest generation.'' These men and women faced some
of the biggest challenges our Nation has seen. They put aside their own
needs to make the country and the world a better place.
These World War II veterans from Arkansas were flown in on an Honor
Flight to see their memorial. They didn't have much to say to me
personally about the shutdown. We talked about it, but talked more
about the branch of the service they were in, what they did during the
war, and the various things that happened to them during that period--
and, of course, about Razorback football. We didn't have to spend and
take time to visit a great deal about the shutdown for me to know their
thoughts. Their presence alone was enough of a reminder that we need to
solve this issue.
As the shutdown drags on, it spills into the debt ceiling discussion.
These are two major issues with very serious impacts if left
unresolved.
To everyone outside of the Beltway, it seems both sides are digging
their heels in deeper, both sides are ratcheting up the rhetoric, and
nothing is getting done. The American people are tired of this.
Dismissing the other side's offers without consideration and trading
barbs do not help out one bit. No one is being asked to abandon their
principles. What needs to happen, however, is both sides must respect
the will of the American people.
We must find a way to do what the public demands--reopen the
government and get our spending under control. The President and the
Senate majority want to say that their health care law is an entirely
separate issue from this debate. That is simply untrue. It is not the
way Americans see it. One major reason the American people are
rejecting it is because of its budget-busting pricetag. We have a
budget that can't be strained any further. Our debt stands at almost
$17 trillion, and $6 trillion of that has been added on President
Obama's watch. You can't take on that much debt and pretend it is not a
problem. Americans do not have the luxury of telling their credit card
company to stop calling because they do not want to pay the debt that
they racked up.
This mess could be avoided if we simply followed regular order here
in Washington, but we have not done that in 10 years. What I mean by
that is during my time in the Senate we have passed one individual
appropriations bill prior to the end of the previous fiscal year. We
didn't consider a single appropriations bill on the Senate floor last
year. Let's return to regular order by passing an annual budget and the
accompanying spending bills, not one large bill.
The good news is that many Members on both sides believe we simply
need to get that done. But that doesn't get us out of our current mess.
We have to get the government operating again, and we have to avoid a
default.
Impassioned debates on major decisions like raising the debt ceiling
in the past have resulted in positive policy changes. In fact, half of
the 53 times Congress has agreed to raise the debt ceiling since 1978,
they have attached conditions to it. The Gramm-Rudman act is a perfect
example. We talked a lot about the need to cap spending in Washington.
Gramm-Rudman actually did that, and it lead to a balanced budget. Even
the situation we are currently in with the Budget Control Act was born
out of this type of constraint. Some in the Chamber still are not happy
with that, but the Budget Control Act is the first time in a long time
that we have managed to curb the growth in Washington spending.
Anyone who has ever bought a house or a car can tell you that it
takes some time to reach a mutually beneficial agreement. There is lots
of haggling involved. The owner says here is what it costs. The
consumer makes an offer in return. This brings a counteroffer and so
on. This continues until both parties reach an agreement where everyone
is satisfied.
But the key to this process is that both parties have to engage in
the discussion. Everybody needs to come to the table. It is simply not
enough to say this is where I stand and I will not take any other
options into consideration. I am fairly certain you will never buy a
house with that approach.
The good news is it seems we are heading in a positive direction. I
believe there is movement toward a consensus. At the very least, both
sides seem to be coming out of their respective corners and discussing
their options. We need everyone to come to the table, to develop a way
forward that puts us on the path to fiscal responsibility. These
discussions serve as a starting point for how to rein in reckless
spending so we can eliminate the blank check, the philosophy that has
become so pervasive in this town.
If we need inspiration to solve this problem, the men and the women I
visited with at the World War II Memorial this past weekend are a
perfect place to look. They have accurately been named the ``greatest
generation'' in part for their willingness to take on enormous
challenges because it was the right thing to do.
We have an enormous challenge in front of us now. Let's follow the
inspiration of the ``greatest generation.'' Let's put our country
before ourselves and solve this problem.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant bill clerk proceeded to call the roll.
Mr. REID. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Cloture Motion
Mr. REID. Mr. President, with the Presiding Officer's permission, I
ask the clerk to report the cloture motion I have filed.
The PRESIDING OFFICER. The cloture motion having been presented
[[Page S7385]]
under rule XXII, the Chair directs the clerk to read the motion.
The legislative clerk read as follows:
Cloture Motion
We, the undersigned Senators, in accordance with the
provisions of rule XXII of the Standing Rules of the Senate,
hereby move to bring to a close debate on the motion to
proceed to S. 1569, a bill to ensure the complete and timely
payment of the obligations of the United States Government
until December 31, 2014.
Harry Reid, Max Baucus, Patty Murray, Charles E. Schumer,
Richard J. Durbin, Barbara A. Mikulski, Sheldon
Whitehouse, Mark Udall, Bill Nelson, Barbara Boxer, Jon
Tester, Brian Schatz, Benjamin L. Cardin, Kirsten E.
Gillibrand, Maria Cantwell, Tim Kaine, Elizabeth
Warren.
Mr. REID. Mr. President, I ask unanimous consent that the mandatory
quorum required under rule XXII be waived.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________