[Congressional Record (Bound Edition), Volume 147 (2001), Part 1]
[Senate]
[Pages 565-568]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           EXECUTIVE SESSION

                                 ______
                                 

 NOMINATIONS OF MITCHELL E. DANIELS, JR., TO BE DIRECTOR OF THE OFFICE 
 OF MANAGEMENT AND BUDGET; ANTHONY JOSEPH PRINCIPI, TO BE SECRETARY OF 
 VETERANS AFFAIRS; AND MELQUIADES RAFAEL MARTINEZ, TO BE SECRETARY OF 
                     HOUSING AND URBAN DEVELOPMENT

       The legislative clerk read the nominations of Mitchell E. 
     Daniels, Jr., of Indiana, to be Director of the Office of 
     Management and Budget; Anthony Joseph Principi, of 
     California, to be Secretary of Veterans Affairs; and 
     Melquiades Rafael Martinez, of Florida, to be Secretary of 
     Housing and Urban Development.
  Mr. DOMENICI. Mr. President, Mel Martinez has a great story. He is a 
self-made man who is destined to do great things. At age 15 he fled 
Cuba during the airlift of children known as Operation Pedro Pan. 
Although, he was alone, he would soon begin his American Dream.
  A graduate of Florida State University College of Law in 1973, 
Martinez joined an Orlando firm and practiced personal injury law. 
During his 25 years of law practice in Orlando, he was very involved in 
a variety of community activities. In 1984, he was appointed chairman 
of the Orlando Housing Authority by the mayor. He held this post for 
two years, later serving as president of the Orlando Utilities 
Commission.
  He also served as Chairman of Governor Jeb Bush's Growth Management 
Commission, declaring a moratorium on new residential projects in 
already-crowded school districts.
  In 1998, he was elected Orange County chairman. As the Chief 
Executive of a government, he was responsible for providing complete 
urban services to over 860,000 people. In this mayoral-like role, he 
advocated home ownership programs for low-income families and lowered 
property taxes. He concentrated on programs emphasizing public safety, 
growth management, the needs of children and families, clean 
neighborhoods, improved transportation, and the streamlining of 
government.
  As Secretary of HUD, Mr. Martinez, assumes the $30 billion budget, 
which faces a critical shortage of low-income properties and mid-income 
rentals. According to a recent HUD report, 5.4 million families pay 
more than 50 percent of their gross income for rent.
  Mr. President, I believe that Mel Martinez will be a great asset for 
HUD. Because of his life story, he will be able to handle the sensitive 
issues faced by this department. His story speaks for itself. From a 
child fleeing from Cuba, to a successful Chairman, he has created his 
success.
  Mr. President, it is with honor that I support Mel Martinez as 
Secretary of Housing and Urban Development.

                          ____________________



  Mr. DODD. Mr. President, I rise today to voice my strong support for 
the confirmation of Mel Martinez to be Secretary of the Department of 
Housing and Urban Development. I am impressed by his background and his 
commitment to providing safe, affordable housing to all Americans. 
Based on my review of the Mr. Martinez's record as a public official in 
Orlando and Orange County and his expressed dedication to the mission 
of the Department of Housing and Urban Development, I believe he will 
make a superb Secretary of Housing and Urban Development. I support his 
nomination and urge my colleagues to do the same.
  Mel Martinez has an extraordinary story. At the age of 15, he fled 
Castro's Cuba to come to the United States without his family. He 
stayed with a foster family for four years before the rest of his 
family could join him in Orlando. After earning a law degree from 
Florida State University, Mr. Martinez entered private practice, but 
also served on numerous public boards and committees. He served on the 
Board of Directors for the Orlando Public Housing Authority from 1982 
to 1986. He was the Chair of the Orlando Affordable Housing Task Force 
in 1984, and President of the Orlando Utilities Commission from 1994 to 
1997.
  Since 1998, Mr. Martinez has served as the Chief Elected Official of 
Orange County, Florida. He has a reputation for championing ``Smart 
Growth'' and for understanding the need to ensure affordable housing 
for all citizens. He even established a commission to identify new ways 
to provide affordable housing.
  Assuming that Mr. Martinez will be confirmed, he comes to HUD at a 
good time. Clearly, the nadir of HUD's existence was during the 1980s 
when the Department was riven by mismanagement and even worse. Jack 
Kemp deserves credit for his commitment to reform and improving housing 
opportunities for the people served by HUD. He worked hard and achieved 
significant progress.
  The last eight years have seen a continuation of reform and a 
realization of many of the goals of reform. The homeownership rate is 
now the highest in history--67.7% of all American families, nearly 
seven out of every ten families, own their own home. Nine million 
households have been added to the ranks of homeowners since 1993. We've 
also seen record high levels of homeownership for urban-center African-
American and Hispanic families. The volume of Federal Housing 
Administration (FHA) loans has doubled in recent years. FHA now has 
about 6.7 million mortgages in its portfolio. FHA has gone from a $2.7 
billion deficit to a current value of more than $16 billion. HUD has 
also recognized the changing needs of our aging population by producing 
a Housing Security Plan for Older Americans.
  HUD has made progress, but there is still much work to be done. There 
is still a pressing need to meet the continuing challenge of helping 
all Americans achieve the dream of homeownership and the promise first 
made over half a century ago in the National Housing Act: a safe and 
affordable place to live for all Americans.
  One of the most troubling paradoxes of our recent prosperity is that 
despite the fact that incomes have risen for people in every income 
category, safe and affordable housing is more elusive than ever for 
many low- and moderate-income families. That is because the cost of 
housing has outpaced the increase in wages in many of our urban 
centers, including areas of Connecticut that now rank among some of the 
most expensive housing markets in the country.
  We are losing public housing units in our country at an alarming 
rate. In some parts of the country, like the Northeast, the age of 
public housing units has necessitated the demolition of many units that 
have become too deteriorated to be rehabilitated. Federal policy has 
tried to provide public housing residents with housing vouchers, but 
frankly, there just aren't enough of those vouchers to go around. 
Further, in high-cost housing markets vouchers haven't always been 
useful to low-income families because they can't always find landlords 
who are willing to accept the vouchers. And even with vouchers, many 
find rent to be all but out of reach.
  We need more vouchers. We also need to invest in capital maintenance, 
and rehabilitation funding to ensure that public housing units remain 
habitable. And if we have dilapidated public housing, then we need to 
put money into building replacement units. While vouchers work in some 
places under some circumstances, they don't work everywhere under all 
circumstances.
  I also believe that the Federal government needs to think ahead to 
address issues that will arise as our elderly population continues to 
grow. We should consider creating tax and other incentives for 
construction of privately-owned assisted living units. The time has 
also come for HUD to consider developing new standards or approaches to 
ensure that senior citizens who live in public housing can stay in 
their homes and not be forced prematurely into expensive and less 
independent institutional care facilities.
  These are not trivial matters. They are tough problems. But from what 
I

[[Page 566]]

have been able to discern, Mel Martinez is up to the task. He has the 
knowledge, the energy, and the commitment to lead HUD as the agency 
begins to address these matters.
  I look forward to working with Mr. Martinez. I have already invited 
Mr. Martinez up to Connecticut. Connecticut has some of the oldest 
housing in the country, but we also have some of the country's most 
successful affordable housing projects. I welcome the opportunity to 
show him our state and, again, to work with him on behalf of all 
Americans seeking a good home for themselves and their families.
  Mr. THURMOND. Mr. President, I rise today in support of the 
nomination of Anthony J. Principi to be Secretary of Veterans Affairs. 
I am pleased that President Bush has selected a person of experience 
and ability for this important position.
  Mr. Principi has a strong background and association with the 
military community. He is a veteran of the United States Navy, a 
graduate from the U.S. Naval Academy, and a highly decorated Vietnam 
veteran. He also served in the Navy's Judge Advocate General Corps.
  Mr. Principi is well qualified for this position, having previously 
served as Acting Secretary of Veterans Affairs and Deputy Secretary of 
the VA. I personally know him to be a capable and dedicated public 
servant. In 1993, I called upon Mr. Principi to be my Staff Director 
for the Senate Armed Services Committee. Later, as Chairman, I 
appointed him to a Congressional Commission on Military Servicemembers 
and Veterans Transition. He subsequently was elected by his colleagues 
as Chairman of that Commission. In each of these instances, his 
performance was exceptional.
  There are a number of important issues facing the Department of 
Veterans Affairs which affect veterans, their families, and employees 
of the Department. I will mention a few of these issues to emphasize my 
own concern and to stress to Mr. Principi that he must aggressively 
address these matters.
  The first issue I hope Secretary Principi strongly addresses is that 
of Veterans Benefits. It takes too long now to get initial decisions 
and the review process can take years. I hope Secretary Principi will 
work with the Under Secretary for Benefits to improve the VA benefit 
review process.
  Second, I am concerned about the status of veterans health care. The 
Congress and the VA have enacted and implemented a number of reforms. 
The challenge now is to ensure that the availability, delivery and 
quality of health care improves.
  A third concern I have relates to the Veterans Equitable Resource 
Allocation, VERA, process. A few years ago, Congress passed a bill that 
requires the VA to allocate resources according to veteran population 
and use of VA medical facilities. This legislation generally has 
shifted some resources from the Northeast to the South and West. I 
trust Secretary Principi will continue to support this important reform 
despite political pressures to do otherwise.
  I congratulate Mr. Principi on his nomination. As a member of the 
Senate Committee on Veterans' Affairs, I look forward to working with 
the Secretary as we address the needs and concerns of the men and women 
who have given much for our Nation.
  Mr. ROCKEFELLER. Mr. President, as the ranking member of the 
Committee on Veterans' Affairs, I am pleased to support the nomination 
of Anthony J. Principi to be Secretary of Veterans Affairs. If 
confirmed, Mr. Principi will have the responsibility of steering the 
Department of Veterans Affairs through a period of great 
transformation.
  I recently had the chance to meet with Mr. Principi and to discuss 
the many challenges he will face in guiding the VA through this 
critical period. I have also had the opportunity to read his answers to 
prehearing questions and to hear his testimony at the January 18, 2001, 
hearing of the Senate Committee on Veterans' Affairs on his nomination. 
Mr. Principi has expressed his belief that our veterans deserve access 
to quality health care and swift and accurate decisions about 
disability benefits. I wholeheartedly agree and believe feel that Mr. 
Principi has the experience and the commitment to maintain this special 
obligation to our Nation's veterans.
  I know that with his years of service to veterans--at VA, here in the 
Senate, and as chair of the Commission on Servicemembers and Veterans 
Transition (the so-called Transition Commission)--Mr. Principi is 
familiar with the importance of the leadership role he will soon assume 
at the VA. Because of his long history and experience, we have great 
expectations for his success, and we expect him to hit the ground 
running to tackle the VA's many challenges.
  We have all heard the President speak about the need to revamp the VA 
health care system. But what exactly does that mean to veterans who 
depend upon the VA? Yes, we have made many sweeping changes in the 
delivery of VA health care. Veterans' health care is now very often 
provided in different settings, which are frequently not the 
traditional hospital site. Outpatient clinics cover the VA landscape 
and provide new access points to many veterans. And veterans--unlike 
many other groups--now have improved coverage of their long-term care 
needs, although VA has been embarrassingly slow in implementing some of 
these programs.
  But while the past decade has brought tremendous transformation to 
the VA health care system, we may be approaching the most challenging 
period of all. The VA medical system offers programs of enormous value, 
especially for veterans who are blind or have spinal cord injuries, who 
need prosthetic devices or dependable mental health care. We must 
retain these specialized services, offered nowhere else in the U.S. 
healthcare landscape, which have made the VA great.
  Mr. Principi understands that, if confirmed, he will be expected to 
be a steward and protector of this very special health care system. 
America's veterans will accept no less.
  The Veterans Benefits Administration is in crisis. Last year, 
Chairman Specter chaired a hearing on the benefits adjudication system, 
and we were greatly disturbed by what we heard about the lack of 
quality and timeliness in VBA decisionmaking. At that hearing, a 
Vietnam combat veteran from my state of West Virginia, suffering with 
post-traumatic stress disorder, testified that it took a full five 
years for his VA disability claim to be approved. The documented 
chronology of events over that five-year period paints a clear picture 
of a benefits system that needs a great deal of work. This is just one 
example of the many cases my staff hear about daily.
  We continue to be dismayed by the delays in making eligibility 
determinations. And despite efforts by hardworking, dedicated VBA 
employees, which have yielded some gains in customer service, the 
problems with VA claims' processing seem to be getting worse. In fact, 
the backlog has increased by 50,000 claims just since we held that 
hearing last July.
  You know the old saying: ``Justice delayed is justice denied.'' Our 
aging veterans population cannot afford to wait. We look to Mr. 
Principi for innovative approaches so that VBA can absorb changes in 
law and new business processes without always going into a tailspin. We 
must do better than this.
  Mr. President, in my view, Mr. Principi is well qualified for this 
important position. He would bring to it his many experiences as an 
advocate for veterans' needs, as well as his sincere commitment to 
their well-being. I urge my colleagues to approve this nomination.
  Mr. WARNER. Mr. President, I rise today to give my strongest 
recommendation for the confirmation of the nomination of Anthony 
Principi to be Secretary of Veterans Affairs.
  On January 5, 2001, then President-elect Bush announced his intention 
to nominate former-Deputy Secretary of Veterans Affairs Tony Principi, 
a man I have known for more than 20 years, to be his Secretary of 
Veterans Affairs. I support this nomination, and I am pleased that the 
President decided to recommend him for this important position.

[[Page 567]]

  Tony Principi served as Deputy Secretary of Veterans Affairs and as 
Acting Secretary of Veterans Affairs for President Bush from 1989 to 
1993. I am confident that he will, once again, be a competent, 
trustworthy, effective Secretary of Veterans Affairs.
  Tony Principi is a graduate of the United States Naval Academy and a 
decorated Vietnam Veteran. He earned a law degree from Seton Hall 
University in 1975. He was a professional staff member, Counsel and 
later Staff Director for both the Senate Armed Services Committee and 
the Senate Veterans Affairs Committee.
  In 1996, Tony was named as the Chairman of the Military 
Servicemembers and Veterans Transition Assistance Commission. This 
Congressional Commission reviewed the adequacy and effectiveness of the 
services and benefits available to active duty service members and 
veterans. A number of the Commission's recommendations fall under the 
cognizance of the Armed Services Committee. I have carefully reviewed 
the recommendations and have initiated action to implement many of the 
improvements and efficiencies recommended by the Commission. As 
Chairman of this important Congressional Commission, Tony did a superb 
job with a very difficult task.
  Tony's father is a veteran of World War II. His wife, Elizabeth is a 
veteran of 30 years of service as a Naval officer and his two sons are 
serving on active duty in the Air Force today.
  Tony's personal experiences in a family of veterans as well as a 
midshipman, Naval officer give him an excellent perspective on the 
issues facing veterans. His experience as a staff member on the Armed 
Services and Veterans Affairs Committees and as a Cabinet official in 
the Department of Veterans Affairs makes Tony uniquely qualified to 
address the many issues he will face as the Secretary of Veterans 
Affairs.
  Mr. President, I had the opportunity to meet with Tony in my office 
the day prior to his confirmation hearing before the Veterans Affairs 
Committee. During our discussions, he assured me that he would take 
timely and positive action to ensure that employees of the Department 
of Veterans Affairs will assist veterans in applying for benefits and 
filing claims for reimbursement and payments. This was an important 
issue on which the Armed Services Committee took a leading role during 
consideration of the National Defense Authorization Act for Fiscal Year 
2001. I was pleased that Tony agreed that it is a duty of the 
Department of Veterans Affairs personnel to assist veterans in 
successfully navigating the difficult claims processes. We also 
discussed opportunities for increased cooperation between the 
Department of Defense and the Department of Veterans Affairs in the 
health care arena. I look forward to working with Tony on these and 
other important issues concerning active duty military personnel and 
veterans.
  I support this nomination. I urge my colleagues to support the 
nomination as well. Secretary Principi will be a crucial part of the 
great team that President Bush has assembled.
  Mr. DOMENICI. Mr. President, I rise today in strong support of M. 
Anthony Principi as Secretary of Veterans Affairs.
  Our Nation's veterans are important to all of us. From time and 
memorial, the men and women of our country's Armed Services have 
dedicated themselves to freedom and democracy. They have done far more 
than representing freedom, they have given themselves to the cause, 
fighting for those inalienable rights that many of us take for granted.
  There are 24.8 million veterans in the United States, 165,000 of 
which are in my own state of New Mexico. This means that all of us know 
a veteran. In fact, one out of every four men in the United States is a 
veteran, and there are 1.2 million female veterans. We must continue to 
work for the continued well-being of our veterans, as they are our 
mothers, fathers, grandmothers, and sons.
  Health care is important to all of us, and veterans are no exception. 
I have worked with other members of Congress to dramatically increase 
funding for veterans' health care. I know that more needs to be done 
for veterans and pledge myself to work for their interests.
  The head of the Department of Veterans Affairs will be presented with 
unique challenges. The Secretary must be pro-active and must have a 
comprehensive understanding of veterans' issues.
  In that vein, I am confident that Mr. Principi is the best person for 
the job. As a decorated Vietnam War veteran, Mr. Principi can 
intimately relate to veterans' special needs.
  Furthermore, he can fully appreciate the Department of Veterans 
Affairs after serving as Secretary and Deputy Secretary of the 
Department under the previous Bush Administration. Mr. Principi applied 
his pro-active attitude and experience when he ordered the creation of 
a registry to track medical conditions of Gulf War veterans.
  Furthermore, Mr. Principi chaired the bipartisan Congressional 
Commission on Military Service Members and Veterans Assistance under 
the previous Administration.
  The Department of Veterans Affairs has put forth significant effort 
in moving towards a ``One V-A'' in attempting to deliver seamless 
service to veterans. Yet, coordinating VA's various missions as 
technology advances remains just one challenge that Mr. Principi must 
address.
  Mr. Principi is a veteran. He has spent his life working for 
veterans. Mr. President, Anthony Principi is the best person to head 
the Department of Veterans Affairs.
  As Secretary of the Department of Veterans Affairs, Mr. Principi will 
surely be tested. I am confident that he will ace the test.
  Mr. MURKOWSKI. Mr. President, I rise in strong support of Tony 
Principi's confirmation as Secretary of Veterans Affairs. I have known 
him for many years both as a staffer and a friend. He was my staff 
director when I was chairman of the Veterans' Affairs Committee many 
years ago. Since then I have come to value his advice and expertise 
about our nation's veterans as much as I have come to value his 
friendship. His experience both within the government and the private 
sector, along with his desire to give veterans the kind of services 
they deserve, makes Tony the best man for the job. I support his 
confirmation and urge my colleagues to do the same.
  Mr. LOTT. Mr. President, I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. The question is, Will the Senate advise and 
consent to the nominations of Mitchell E. Daniels, Jr., to be Director 
of the Office of Management and Budget; Anthony Joseph Principi, to be 
Secretary of Veterans Affairs; and Melquiades Rafael Martinez, to be 
Secretary of Housing and Urban Development?
  The clerk will call the roll.
  The legislative clerk called the roll.
  The result was announced--yeas 100, nays 0, as follows:

                    [Rollcall Vote Nos. 1, 2, 3 Ex.]

                               YEAS--100

     Akaka
     Allard
     Allen
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Breaux
     Brownback
     Bunning
     Burns
     Byrd
     Campbell
     Cantwell
     Carnahan
     Carper
     Chafee
     Cleland
     Clinton
     Cochran
     Collins
     Conrad
     Corzine
     Craig
     Crapo
     Daschle
     Dayton
     DeWine
     Dodd
     Domenici
     Dorgan
     Durbin
     Edwards
     Ensign
     Enzi
     Feingold
     Feinstein
     Fitzgerald
     Frist
     Graham
     Gramm
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Helms
     Hollings
     Hutchinson
     Hutchison
     Inhofe
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerry
     Kohl
     Kyl
     Landrieu
     Leahy
     Levin
     Lieberman
     Lincoln
     Lott
     Lugar
     McCain
     McConnell
     Mikulski
     Miller
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Nickles
     Reed
     Reid
     Roberts
     Rockefeller
     Santorum
     Sarbanes
     Schumer
     Sessions
     Shelby
     Smith (NH)
     Smith (OR)
     Snowe
     Specter
     Stabenow
     Stevens
     Thomas
     Thompson

[[Page 568]]


     Thurmond
     Torricelli
     Voinovich
     Warner
     Wellstone
     Wyden
  The nominations were confirmed.

                          ____________________