[Congressional Record Volume 171, Number 77 (Thursday, May 8, 2025)]
[House]
[Pages H1927-H1932]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROTECTING AMERICANS FROM HARMFUL CRYPTO PRACTICES
(Under the Speaker's announced policy of January 3, 2025, Ms. Waters
of California was recognized for 60 minutes as the designee of the
minority leader.)
Ms. WATERS. Madam Speaker, I rise today to further discuss with our
Members and this country the situation that we find ourselves in, the
chaotic situation that has so many people confused. It is a chaotic
situation that is causing trauma and harm to the people of this
country.
I know much of what I am going to say today perhaps has been said by
others before, but we need to talk about this situation over and over
again and daily so that people can understand what is going on and how
our democracy is being challenged.
Madam Speaker, last year, Trump denied knowing anything about Project
2025, the radical rightwing plan to reshape the Federal Government. Of
Project 2025, Trump said: ``I don't know anything about it. I don't
want to know anything about it.''
Trump, Elon Musk, and his appointees are now following the Project
2025 playbook. They are recklessly gutting Federal agencies and
government's capacity. Elon Musk has said that the government ``should
privatize everything that we possibly can.'' They are laying off or
pushing into retirement tens of thousands of Federal employees. The
cruelty is the point.
Russell Vought, Director of the Office of Management and Budget and
Project 2025 architect, has said of Federal employees: ``We want to put
them in trauma.''
It has been over 100 days since President Trump was inaugurated.
Since then, the President of the United States has questioned his role
to uphold the Constitution, an oath he made when he was sworn into
office. He has also questioned whether Americans are entitled to due
process, a foundational civil protection. He has endlessly flouted the
rule of law.
As a matter of fact, the American Civil Liberties Union has called
the Trump administration's action: ``One of the most abusive and
aggressive assaults on human rights in United States Presidential
history.''
In carrying out their pro-billionaire agenda, Republicans have also
gutted programs and agencies that serve as critical lifelines to
American families, many of which include their very own constituents.
The international leadership which Americans benefit greatly and
built for decades is now destabilized by Trump's trade war against our
allies.
In just a few months, Trump has introduced chaos in the stock market
and undermined confidence for consumers, investors, and small
businesses, many of which have cautioned that they will have to close
due to Trump's untenable tariffs which act as a tax on Americans and
their businesses.
At the same time, as families struggle, Trump has increased his
wealth by billions since taking office, which is a slap in the face to
American families struggling to put food on the table.
Just last week, alarming new information came to light regarding
foreign governments making business deals using Trump's crypto. A $2
billion business deal using the Trump firm's stablecoins with a fund
backed by Abu Dhabi was announced at a conference in Dubai.
This arrangement represents a significant contribution by a foreign
government to President Trump's private crypto business that will
abundantly grow the Trump family's wealth.
While Trump and his billionaire insiders' wealth catapults, Americans
are bracing themselves for layoffs, shortages, and higher prices in a
recession engineered by Trump.
While Trump and his family continue to land billions of dollars in
deals and investments with American companies and foreign entities,
Trump has asked Americans to just withstand the ``pain.'' This is from
his economic policies.
While Republicans work hard to make room for $7 trillion in tax cuts
for American oligarchs like Elon Musk and Jeff Bezos, Republicans are
cutting $880 billion in funding from Medicaid food stamps for Americans
who rely on this help.
Is this how Donald Trump has improved the lives of American
families--by damaging their retirement plans, jobs, and social safety
nets?
It is clear there is no such thing as business as usual anymore. This
is why this week I took a stand against Trump's actions. For several
years, I have led the effort in Congress to advance commonsense crypto
legislation to protect American investors and consumers from fraud and
from scams, while supporting crypto capital formation.
After years of good faith, bipartisan negotiation and collaboration
with regulators and stakeholders, former Chair McHenry and I even
drafted payment stablecoin legislation that would create a strong
Federal framework and put consumer protection front and center.
My bill would foster innovation, while properly addressing the
concerns I have long held about safeguarding our Nation's consumers
from scams that inundated the crypto industry. Our bill also addressed
national security concerns that adversaries and criminal organizations
could use stablecoins for their very harmful purposes.
While we are talking about crypto, I think it is important for me to
let the people know that crypto is a digital form of private cash. It
is very important that people understand that. We are trying to share
the information so people understand about this digital form of private
cash.
However, we live in a different world now. Many of these risks have
only increased since the inauguration of President Trump. President
Trump's actions have drastically altered the crypto landscape in ways
that are far more dangerous than what we could ever imagine. He has
gutted the financial regulators tasked with protecting Americans.
Ahead of the scheduled joint hearing between the Financial Services
Committee and the Agriculture Committee on crypto market structure
legislation, I presented a straightforward, acceptable, and
basic request to the Republicans.
I told the Chair of the Financial Services Committee that I would
only give my consent to this hearing if Republicans would include
provisions to block Trump--or any sitting President--and his family, as
well as Members of Congress, from further profiting off crypto at the
expense of American families in his crypto legislation. That is all I
asked for.
[[Page H1928]]
Unlike other hearings in Congress, this one was different. It
required every Member--Democrat and Republican--to agree to hold this
hearing. Well, I had to think whether I could agree to this hearing if
there wasn't a commitment to address the corruption I and many across
this country recognize.
Whether a Republican or Democrat, any Member of Congress that intends
to protect the public from the exploitation of government power should
stand by these foundational principles of our democracy.
Regrettably, Republicans rejected my request. In fact, rather than
post my legislation to stop corruption, they decided to not even post
their legislation.
Then when I asked for a commitment to include a prohibition on owning
crypto by the public officials writing the laws and rules governing
crypto, that was rejected, as well. Because the joint hearing needed
the consent of every Member, I could not in good faith agree to such a
hearing.
{time} 1145
Madam Speaker, you see, through this legislation, Republicans are
legitimizing Trump's and his family's efforts to enrich themselves on
the backs of average Americans. Through his crypto businesses, Trump
has created a pathway to circumvent our country's national security and
anticorruption laws. This approach allows adversaries like China and
Russia to curry favor, either blatantly or anonymously, through
transfers of money to him and his inner circle.
This week, we saw new reports that insiders made nearly $100 million
on Melania's meme coin.
Public officials being able to sell access using crypto undermine our
democracy and free market system.
Let's look at this for what it is. This is how authoritarian regimes
do business.
Trump has turned the Office of the Presidency into a personal
moneymaking machine, and we must speak truth to power for the Americans
we took an oath to protect.
Let's take a look at the timeline of this, shall we?
As the Republican Presidential nominee, Trump launched his family's
crypto venture called World Liberty Financial, a decentralized finance
crypto platform. The Trump family now has a claim on 75 percent of net
revenues from token sales and 60 percent from World Liberty operations.
Concerning crypto industry data also shows that many investors in
World Liberty's crypto are based abroad in countries like Singapore,
South Korea, Hong Kong, and the United Arab Emirates. Because this
company was launched during Trump's campaign, it gave him an avenue to
possibly circumvent Federal laws that make it illegal for foreigners to
donate to Presidential campaigns or inaugural funds.
After the election and just before his inauguration, President Trump
and the First Lady, Melania Trump, kicked off his Presidency with the
launch of their own meme coins, which have reportedly lost the
investors, who trusted their President, $2 billion.
Guess what, Madam Speaker? The President and his family made at least
$350 million.
Then, in March, President Trump's World Liberty Financial announced
the launch of its stablecoin, conveniently named USD1, just before our
Financial Services Committee was scheduled to vote on legislation
regulating the stablecoin market.
Stablecoins are a type of crypto that claim to maintain a constant or
``stable'' value and are used in most crypto transactions today.
In May, World Liberty Financial announced the firm will be making a
$2 billion business deal with a fund backed by Abu Dhabi, using the
Trump firm's stablecoins. This deal also includes Binance, the world's
largest crypto exchange.
Recently, Binance's founder has been seeking a pardon from the Trump
administration after he pleaded guilty to money laundering and spent 4
months in Federal prison. Nevertheless, Republicans' stablecoin bill
did nothing to address Trump's conflict and instead voted to hand Trump
the authority to write the rules over his and his competitors'
stablecoins.
That is right. Traditionally, our Federal financial regulators were
intentionally created by Congress to be independent from the White
House in order to put the stability of our financial markets above
politics. Trump has undermined that independence by making these
independent agencies now clear all rules with the White House.
If stablecoin legislation is passed, then agencies would draft rules
that would be sent straight to the Trump White House, and he could
directly make edits that would benefit his own stablecoin business. His
business could also make adjustments to their operations, knowing the
rules before their competitors.
Later, in March, Trump's sons launched their own Bitcoin company
called American Bitcoin. President Trump had conveniently already
instructed the Treasury to create a Bitcoin reserve and a digital asset
strategic reserve, a move that would boost the value of the Bitcoin he
and his Cabinet members own, using taxpayer resources.
Leading up to the White House's first crypto summit, World Liberty
purchased $20 million in crypto tokens, some of which include those
Trump picked for the strategic cryptocurrency reserve.
I found out recently that, last month, President Trump was venturing
deeper into crypto with a new project. This would be his very own video
game that uses crypto. The video game is supposed to resemble Monopoly
GO! Players travel around a board and earn money for constructing
buildings in a digital city.
Madam Speaker, you heard that right. Trump is producing video games
that involve crypto to model his own real estate business, which went
bankrupt.
Who do you think is helping him launch this video game? It is the
same person who helped launch his meme coin. This is his longtime pal,
Bill Zanker.
Other Trump companies, like Trump Media & Technology Group, which is
the parent company of Truth Social, are also leveraging the Office of
the President by partnering with major crypto platforms like
Crypto.com, promising to purchase $250 million in crypto, initiating
plans to launch crypto exchange traded funds, ETFs, and more.
Trump is gearing up to host a May 22 dinner for top Trump meme coin
holders. What this means is the more of his crypto that people buy, the
higher their chances of getting access to Trump. We don't know everyone
who is buying his cryptoassets. It could be foreign governments,
individuals, or special interests looking to directly influence
Presidential decisions.
Trump ran on a campaign to put more money in the pockets of
Americans. It turns out he just meant his pockets and those of his
cronies.
The first 100 days of the Trump administration were filled with
failures, chaos, and incompetence. The United States' role and
reputation globally have been severely damaged, and many Americans are
worried they will no longer receive the Social Security checks and
Medicaid they need.
Now, congressional Republicans insist on pushing forward crypto
market structure legislation, without addressing any of the corruption
I have mentioned here today.
Madam Speaker, I ask Members to keep in mind that all of this is
occurring against this unprecedented backdrop. Every day that
congressional Republicans refuse to stand up for their constituents,
they diminish their power and Congress' and damage the country's
democratic future.
At the same time, Trump has undone Congress' decades-long ethics
rules and enforcement laws. In doing so, he has removed many of the
institutions and watchdogs that would serve as a check on his own self-
profiteering.
He has gutted the Corporate Transparency Act, frozen enforcement of
the Foreign Corrupt Practices Act, and disbanded the Department of
Justice's National Cryptocurrency Enforcement Team.
Trump has also been extremely clear about taking control of
independent agencies, even issuing executive orders making sure they
are no longer independent from the whims of politics. The Securities
and Exchange Commission has suspended several ongoing cases for Trump
donors and Trump's crypto investors.
[[Page H1929]]
For example, the Securities and Exchange Commission recently
suspended its enforcement action against Justin Sun, founder of the
TRON Foundation. The SEC's own complaint detailed how Sun sold
unregistered crypto asset securities, manipulated trading to
artificially inflate the prices of the tokens he issued, and secretly
paid celebrities to tout his tokens, all in violation of well-
established and widely recognized securities laws. The timing also
raises significant concern as it aligns with Sun's $75 million
investment in Trump's World Liberty Financial.
We do not need to repeat the mistakes of the past with a new risky
financial product. We can integrate the lessons of the past for a
future that spearheads responsible innovation and growth.
Remember the predatory mortgages from the financial crisis? Those
were also sold as innovative products without sufficient guardrails.
Instead, they caused millions of people to lose their jobs, their
homes, their savings, reversing and worsening any gains that had been
made in Black and Latino homeownership and wealth. The collapse of the
housing market during this time displaced approximately 10 million
Americans.
As Trump wreaks chaos on the stock market and broader economy, he is
also injecting additional risk to our financial system, ultimately
putting the country on track for a recession and financial crisis.
Let's start with Trump's deregulatory agenda. Trump has shuttered the
Consumer Financial Protection Bureau. Republicans are paving the way
for a reality where the Consumer Financial Protection Bureau is
dismantled and the economy is no longer guided by independent
regulators. Instead, regulators are being manipulated to serve the
political and financial interests of the President and his billionaire
insiders.
In this context, Trump's light-touch crypto legislation could have
real risk for us all.
Trump has undone critical enforcement mechanisms that make our
marketplace safer for consumers and hold bad actors accountable.
The Trump administration is also integrating unnecessary risk and
volatility into agencies. For example, according to recent reports, the
Department of Housing and Urban Development, or HUD, is attempting to
experiment with crypto in their operations, including by paying
grantees in stablecoin or crypto. One of Trump's executive orders
leaves the door wide open for Trump to require the use of his
stablecoins and meme coins in order to pay taxes or enter into other
arrangements with the government. This would be just another in a
string of this administration's egregious conflicts of interest.
During the 2008 financial crisis, we saw how poorly regulated money
market funds needed to be bailed out by the Treasury Secretary using
the Exchange Stabilization Fund. We also saw how the Federal Reserve
used its emergency lending authority to provide a bailout for American
International Group.
When we step back and view all of these factors, it is clear Trump is
socializing risk to American families who are not engaging with the
crypto ecosystem. I am deeply concerned that, as President, Trump will
transfer the risks from his ventures and sponsorship of the crypto
industry to the American taxpayer.
As Members of Congress, we must legislate. Every day they try to
shutter the CFPB, every day, we are fighting, whether it is at agency
headquarters or in the court.
As Members of Congress, we have the serious duty to protect and
defend the American public. Since the Republican majority refuses to do
its job, I am determined to shed light on these critical issues.
Now, I will move from the Consumer Financial Protection Bureau into
the diversity, equality, and inclusion that he has made a top priority
in his administration.
{time} 1200
There is a continuing legacy of racism, sexism, and discrimination in
our society. Bias and discrimination have contributed to the exclusion
of qualified women, people of color, LGBT, and persons with
disabilities, and veterans.
Diversity, equity, and inclusion policies are not about mandates and
quotas. On the contrary. DEI is about eliminating bias, opening doors,
and giving everyone, no matter what they look like or who they love a
fair opportunity for employment, promotion, and access to capital. DEI
is about understanding and knowing what these differences are and doing
everything that can be done, both in government and in corporations, to
just let those who wish to have a promotion--many of whom have worked
for 25 and 30 years--have a chance to interview, to see if their
talents are understood, and that they will have the opportunity to move
up.
Well, he has made DEI a very, very vocal point. He started out
talking about getting rid of that. He sent memos around to all of the
nonprofits and agencies telling them if they dare to have anything that
looks like DEI, which he doesn't have a definition for, that they are
going to be shut down, and that they are going to be penalized.
Trump and Musk are targeting any institution that displays a focus
towards diversity, equity, and inclusion.
When I became the first Black and the first woman chair of the House
Financial Services Committee back in 2019, I established Congress'
first-ever Diversity and Inclusion Subcommittee, chaired by
Representative Joyce Beatty. The Subcommittee on Diversity and
Inclusion held 18 hearings, released three major reports, and brought
long-overdue scrutiny to the ways in which systemic barriers in our
financial system disadvantage entire communities. We exposed inequities
in hiring and promotion. We shined a light on the racial wealth gap,
and we demanded that corporate America take diversity seriously, not as
a talking point but as a matter of policy, accountability, and economic
justice.
We know the numbers. Women make up more than 50 percent of the
population, people of color over 40 percent. And yet, in the financial
services industry, representation of these groups drops dramatically,
especially for women of color, at every level of leadership.
We are not dealing with a pipeline problem. We are dealing with an
access problem; a power problem.
I want to be clear. My commitment to DEI did not start there. Back in
2010, I helped to create the Offices of Minority and Women Inclusion at
our Nation's top financial regulators. These offices were designed to
embed DEI into the DNA of the financial system, from hiring and
contracting to how institutions supervise the banks they regulate.
These offices are now under assault, despite its legal mandate and
critical role in promoting equity in hiring, contracting, and oversight
across the financial system.
Let me be clear. DEI is about more than just checking a box. It is
about upward mobility. It is about making sure women and people of
color aren't just in the room but they are also at the head of the
table and also serving on boards, making investment decisions, and
building wealth that lasts.
That is why I fought to pass the Minority Business Resiliency Act,
now law, and secured $600 billion for community development, financial
institutions, and minority depository institutions during the pandemic.
That is why I continue to support the Minority Business Development
Agency, which has now been defunded and dismantled, even though it has
provided critical support to businesses all around the country.
Let me just continue on. You know, it is absolutely disturbing and
upsetting to walk through what is happening in our country under
President Trump and his entire administration.
Let me be absolutely clear. We are in the midst of a full-blown
affordable housing and homelessness crisis with over 771,000 people
experiencing homelessness on any given night in this country.
Rents and home prices are surging, and families are being priced out
of their communities. Housing supply is not keeping up with demand. As
a result, more and more families are pushed out onto the streets or
forced to choose between paying rent or buying groceries.
Across the country, renters and homeowners alike are spending well
[[Page H1930]]
over 30 and even 50 percent of their income on housing.
That is why I will soon reintroduce my legislative housing package to
address the housing and homelessness crisis head-on, which many of you
are familiar with, my Housing Crisis Response Act, Ending Homelessness
Act, and Downpayment Toward Equity Act. These bills will help increase
the supply of housing, bring down costs, and revive the dream of
homeownership for all.
While Democrats are fighting to deliver real relief to families
across this country, President Trump, along with co-president Elon Musk
and Secretary Scott Turner, are working to decimate HUD from the inside
out.
Since January, this administration has halted critical agency
operations, unlawfully put staff on leave or fired staff; terminated
programs that are key to ending housing discrimination, such as
Affirmatively Furthering Fair Housing and the Equal Access Rules;
compromised Americans' sensitive data by granting Elon Musk's so-called
DOGE personnel with the agency exposing victims of domestic violence
and/or assault; reported plans to launch dangerous blockchain and
crypto experiments within HUD; and begun planning to shut down HUD
field offices all over the country.
Make no mistake, this agency isn't a luxury. It is a necessity. This
agency helps our veterans, our seniors, people with disabilities, and
families struggling to stay afloat.
When I saw the harmful impact of this administration, I quickly took
action and hand-delivered a letter to Secretary Turner, signed by 122
Democratic colleagues demanding answers. Now, I am talking
about Secretary Turner who has been appointed to dismantle HUD by
President Trump.
What is equally concerning to me in Congress is that Republican
Members continue their push to slash Federal investments in housing,
which represent less than 1 percent of all Federal spending. In their
latest fiscal year 2025 budget, they slashed housing by more than $500
million, which will put at least 32 million households at risk of
eviction and homelessness.
Just this week, Trump released a heartless fiscal year 2026 budget
that cuts 26 billion from rental assistance programs, including public
housing, housing choice vouchers, project-based rental assistance, and
housing for seniors and people with disabilities.
He is turning these lifeline programs into State block grants and
imposing a cruel 2-year cap on aid for able-bodied adults.
It doesn't stop there. His budget also calls for the obliteration of
critical community development programs like the Community Development
Block Grant, HOME, and fair housing grants. These are the very programs
that help create affordable housing, revitalize disadvantaged
neighborhoods, and protect families from housing discrimination.
Eliminating these programs will devastate our communities, displace
families who are already on the brink of homelessness, and destroy the
progress made to ensure every person in our Nation has access to safe,
stable, and affordable housing.
Despite all the chaos, I will not give up. I will not stand by. I
will continue to fight against Trump's sabotage, defend the agency, and
stand up for the families who depend on the agency to keep a roof over
their heads.
I have fought too long and too hard to let this administration tear
it down, and I will not stop until our Nation's affordable housing and
homelessness crisis ends once and for all.
But that is not all. Let's take a look at Social Security. Trump
promised repeatedly not to cut Social Security under his
administration. He said: ``Social Security will not be touched, it will
only be strengthened.''
But listen carefully to what Trump billionaire appointees are saying:
Elon Musk called Social Security ``the biggest Ponzi scheme of all
time.'' Let me say it again. The co-president, not elected by anybody,
appointed by Trump, Elon Musk called Social Security ``the biggest
Ponzi scheme of all time.''
Commerce Secretary Howard Lutnick said only a ``fraudster'' would
complain about a missed Social Security check. He is saying: Seniors,
if you didn't get your Social Security check, don't complain because if
you complain, you must be about fraud. You must be about something else
rather than getting your check.
I don't know who this Lutnick is, but I only know that he is, too, a
billionaire. What the heck does he care about Social Security? What
does he care about a missed Social Security check? Not a darn thing.
Trump, Musk, and DOGE are undermining the infrastructure of Social
Security by planning to cut 7,000 employees at the Social Security
Administration. They are planning to take away the option to use the
phone to file for benefits, requiring seniors to visit a field office
if they do not use the internet. Trump has put these plans on hold for
now, but we know this administration will continue to make life harder
for seniors.
Now Trump is adding Social Security numbers to the Social Security
death list to force immigrants to leave the country. People who have
their Social Security numbers placed on the death list by mistake can
have their homes foreclosed on or bank accounts closed.
These actions would violate data privacy law. Those who end up on the
death list report, those mistakes can take months to fix.
Trump is risking seniors' ability to receive the benefits they have
earned. Now, I want to be very clear about this. He said he would not
cut Social Security, but he is destroying the infrastructure of Social
Security. So people can't have their questions answered, they can't get
into a Social Security office that has been closed down and they can't
get any answers by phone.
This is outrageous, and I am so afraid of what is happening to those
who depend on Social Security. I am so afraid that seniors with limited
amounts of Social Security are going to end up hungry. Of course, they
wouldn't be able to pay any rent unless they are getting subsidized by
HUD in some way.
Let's go to Medicaid. Just like with Social Security, Trump and the
Republicans are playing games with people's lives because now they are
coming for Medicaid through this dangerous reconciliation bill.
Congress' nonpartisan scorekeeper, the Congressional Budget Office,
just confirmed the truth: 5.5 million people would lose their Medicaid
coverage if Republicans cut the Federal match for expansion States; 3.3
million more would lose coverage if they cap Federal Medicaid spending
in those same States; 2.3 million people, mostly low income seniors and
people with disabilities, would lose coverage if Republicans repeal
Biden's enrollment rule; and a staggering 8.6 million Americans would
be pushed off Medicaid if Republicans limit States' ability to fund the
program through provider taxes.
{time} 1215
Here is what that means in real life: seniors losing nursing home
care, children losing access to basic checkups, cancer patients cut off
in the middle of treatment, and families forced to choose between a
doctor's visit and rent.
Republicans say these cuts are about cutting waste, fraud, and abuse,
but Americans know what this really is. It is an attack on the most
vulnerable to pay for the wealthy and the well-connected.
These cuts would not just shrink the deficit. They would shrink the
life expectancy of millions. They would drive up hospital costs,
emergency room visits, and medical bankruptcies. These proposals would
lead entire communities, especially communities of color, Black,
Latino, and rural populations, without a healthcare safety net.
Republicans don't care as long as their billionaire boys' club can
pad their pockets. It is a stark reminder of whose interests they are
really serving.
This is from a Washington Post article:
``One month into a sweeping new tariff regime that President Donald
Trump vowed would bring jobs and factories `roaring back,' a
Pennsylvania manufacturing hub is full of skepticism.
``Trump once told supporters here in the Lehigh Valley that they know
`better than almost any place in this country' how global trade has
`outsourced your industries' and `wiped out your steel mills.' Now,
even in one of the communities the President suggested would benefit
most from his tariffs, his
[[Page H1931]]
economic overhaul is disrupting lives and testing some voters' patience
in an election-deciding swing State.
``New hires at a local truck-making plant had just started on the
shop floor last month when their company announced an abrupt change:
layoffs that could hit more than 10 percent of the workforce and that
the company blamed on tariffs and other economic uncertainty. Even
Trump's fans sometimes grimace at his plans to remake the world
economy, worried about higher costs in a politically competitive area
still scattered with lawn signs that read: `Trump Low Prices Kamala
High Prices.' ''
He had these signs all over America, promising low prices.
``Almost two-thirds of Americans disapprove of Trump's handling of
tariffs, and a lasting backlash could be especially consequential for
Republicans in areas such as the Lehigh Valley, a perennial Rust Belt
battleground where Trump's campaign pitch resonated with many voters.''
They believed him.
``Trump's tariffs have put pressure on some of the GOP's most
vulnerable incumbents in Congress, including the local Congressman,
freshman Ryan Mackenzie, as they try to defend Trump's agenda while
also acknowledging their constituents' concerns.
``Officials here are doubtful that any tariffs, no matter how
drastic, can recreate the economy of the past, when one steel company's
facilities in Bethlehem, Pennsylvania, alone employed 30,000 people.
Manufacturing is still the biggest industry in the Lehigh Valley, with
investment booming in recent years. At the same time, leaders are proud
that they managed to diversify their economy after Bethlehem Steel
collapsed decades ago.
``Brian Higgins, a longtime Republican commissioner in Lower Macungie
Township, home to the truck plant, said it is hard to imagine
manufacturing rebounding to where it was decades ago. `I don't think
anybody thinks that you could bring the Lehigh Valley back to what it
was,' Higgins said. `Could we bring some manufacturing back there?
Probably, but not to the extent that people believe.'
`` `I just think it is going to cost more money, and then it is going
to hurt us with retaliatory tariffs,' said Higgins, a self-described
`Reagan Republican' who could not bring himself to vote for Trump.
``Trump argues that levying tariffs on imports will give him leverage
for trade deals and ultimately compel companies to ramp up production
in the United States. Critics say the strategy will raise costs for
consumers and destabilize the economy while leaving businesses too
uncertain about the future to make plans.''
Here, let me just share with you what was on an article from The
Washington Post: Trump's tariffs are causing untold harm to America.
Let me read another story. This story is from The Wall Street
Journal, ``The Dumbest Trade War in History.'' The Wall Street Journal
said that.
``President Trump will fire his first tariff salvo on Saturday
against those notorious American adversaries, Mexico and Canada. They
will get hit with a 25 percent border tax, while China, a real
adversary, will endure 10 percent. This reminds us of the old Bernard
Lewis joke that it is risky to be America's enemy, but it can be fatal
to be its friend.
``Leaving China aside, Mr. Trump's justification for this economic
assault on the neighbors makes no sense. While House Press Secretary
Karoline Leavitt said they have `enabled illegal drugs to pour into
America,' but drugs have flowed into the U.S. for decades and will
continue to do so as long as Americans keep using them. Neither country
can stop it.
``Drugs may be an excuse since Mr. Trump has made clear he likes
tariffs for their own sake. `We don't need the products they have,' Mr.
Trump said on Thursday. `We have all the oil you need. We have all the
trees you need, meaning the lumber.'
``Mr. Trump sometimes sounds as if the U.S. shouldn't import anything
at all, that America can be a perfectly closed economy making
everything at home. This is called autarky, and it isn't the world we
live in or one that we should want to live in, as Mr. Trump may soon
find out.
``Take the U.S. auto industry, which is really a North American
industry because supply chains in the three countries are highly
integrated. In 2024, Canada supplied almost 13 percent of U.S. imports
of auto parts and Mexico nearly 42 percent. Industry experts say a
vehicle made on the continent goes back and forth across borders a half
dozen times or more, as companies source components and add value in
the most cost-effective ways, and everyone benefits.
``The Office of the U.S. Trade Representative says that in 2023 the
industry added more than $809 billion to the U.S. economy, or about
11.2 percent of total U.S. manufacturing output, supporting `9.7
million direct and indirect jobs.' In 2022, the U.S. exported $75.4
billion in vehicles and parts to Canada and Mexico. That number jumped
14 percent in 2023 to $86.2 billion, according to the American
Automotive Policy Council.
``American carmakers would be much less competitive without this
trade. Regional integration is now an industrywide manufacturing
strategy--also employed in Japan, Korea, and Europe--aimed at using a
variety of high-skilled and low-cost labor markets to source
components, software, and assembly.
``The result has been that U.S. industrial capacity in autos has
grown alongside an increase in imported motor vehicles, engines, and
parts. From 1995 to 2019, imports of autos, engines, and parts rose 169
percent while U.S. industrial capacity in autos, engines, and parts
rose 71 percent.
``As the Cato Institute's Scott Lincicome puts it, the data shows
that `as imports go up, U.S. production goes up.' Thousands of good-
paying auto jobs in Texas, Ohio, Illinois, and Michigan owe their
competitiveness to this ecosystem, relying heavily on suppliers in
Mexico and Canada.
``Tariffs will also cause mayhem in the cross-border trade in farm
goods. In fiscal 2024, Mexican food exports made up about 23 percent of
total U.S. agricultural imports, while Canada supplied some 20 percent.
Many top U.S. growers have moved to Mexico because limits on legal
immigration have made it hard to find workers in the U.S. Mexico now
supplies 90 percent of avocados sold in the U.S. Is Mr. Trump now an
avocado nationalist?
``Then, there is the prospect of retaliation, which Canada and Mexico
have shown they know how to do for maximum political impact. In 2009,
the Obama administration and congressional Democrats ended a pilot
program that allowed Mexican long-haul truckers into the U.S. as
stipulated in NAFTA. Mexico responded with targeted retaliation on 90
U.S. goods to pressure industries in key congressional districts.
``These included California grapes and wine, Oregon Christmas trees
and cherries, jams and jellies from Ohio, and North Dakota soy. When
Mr. Trump imposed steel and aluminum tariffs in 2018, Mexico got
results using the same tactic, putting tariffs on steel, pork products,
fresh cheese, and bourbon.
``Canadian Prime Minister Justin Trudeau has promised to respond to
U.S. tariffs on a dollar-for-dollar basis. Canada could suffer a larger
GDP hit since its economy is so much smaller, but American consumers
will feel the bite of higher costs for some goods.
``None of this is supposed to happen under the U.S.-Mexico-Canada
trade agreement that Mr. Trump negotiated and signed in his first term.
The U.S. willingness to ignore its treaty obligations, even with
friends, won't make other countries eager to do deals. Maybe Mr. Trump
will claim victory and pull back if he wins some token concessions, but
if a North American trade war persists, it will qualify as one of the
dumbest in history.''
Continuing with The Washington Post article:
`` `The Trump administration's policies are delivering much-needed
economic relief for everyday Americans while laying the groundwork for
a long-term restoration of American greatness,' White House spokesman
Kush Desai said in a statement, noting that inflation cooled in March
and that gross private domestic investment increased by 22 percent in
the first quarter of 2025.
``Employers added 177,000 jobs last month, a strong showing, despite
the upheaval from Trump's tariffs announced April 2. In interviews,
Lehigh Valley voters who had heard about the
[[Page H1932]]
Mack layoffs often brushed them off as routine--the company has
downsized before--or said they weren't sure they believed the firm's
explanation.
``But many, including Trump voters, also said they are bracing for
economic pain in the valley, which spans two counties: Lehigh, which
Democrat Kamala Harris won by less than 3 percentage points in the
fall, and Northampton, a bellwether that frequently backs the winners
of Presidential elections and went narrowly for Trump.
``Adrienne Rinehimer, 51, said she is building a house and might push
back her timeline if prices get too high. Retiree Rick Janko was
mostly''--he was at one time--``mostly supportive of the President's
agenda but rolled his eyes at claims that tariffs will bring
manufacturing back. Like Rinehimer, he cast his ballot for Trump last
year.''
{time} 1230
Mr. Speaker, with the short time left, I say that I came to the floor
to talk about the harm being caused by the Trump administration, the
corruption in crypto, and the harm to people just trying to live their
lives.
Trump's regime is going after the supports that government provides
to help Americans live in safe homes, put food on the table, and take
care of the health of their kids. His tariffs are leading to a
recession and raising costs of food, cars, and housing.
The consistent and cruel policies are not just harming our
pocketbooks, but they are going after our democracy.
Mr. Speaker, this concludes the time that I have been afforded on the
floor today to give light to and transparency to what is happening in
this administration. I know that it is hard to believe. I know that
people could not believe that the President of the United States is
undermining our democracy, but this is a President who has no care, no
concern, and no respect. This is a President who dresses himself up
like the Pope and invites photographers to come and take a look. When I
talk about disrespect, this President disrespects everybody but his
money.
This is a democracy that is under fire. This is a democracy that is
at risk. This is a democracy that Democrats and Republicans alike
should be concerned about, that we would be willing to fight for. It
was at one point in time that we thought those on the opposite side of
the aisle were so patriotic.
Where is their patriotism now? Where will they stand up when the
democracy is at stake? This is a time when we thought that they were so
concerned about law and order. They have the biggest crook in the
history of this country, having been convicted 34 times. They cannot
say one word about what is wrong and about what he is doing and how he
has no respect for the law.
Mr. Speaker, I call on the Republicans: Why don't you prove who you
say you are instead of being afraid of the President of the United
States, who you think will primary you? Why is it you keep your mouths
shut because you don't stand up for the people in your districts
because you are afraid that President Trump will be angry with you?
Enough said. I thank you all so very much for affording me this
opportunity.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Begich). Members are reminded to refrain
from engaging in personalities toward the President.
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