[Congressional Record (Bound Edition), Volume 148 (2002), Part 8]
[Senate]
[Pages 10481-10483]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CORZINE (for himself, Mr. Torricelli, and Mr. Kennedy):
  S. 2628. A bill to amend part A of title IV of the Social Security 
Act to require a State to promote financial education under the 
temporary assistance to needy families program and to allow financial 
education to count as a work activity under that program; to the 
Committee on Finance.
  Mr. CORZINE. Mr. President, I rise today with my colleagues Senators 
Torricelli and Kennedy to introduce the Financial Literacy for Self-
Sufficiency Act.
  Our bill would require states to promote financial education through 
their TANF, Temporary Assistance to Needy Families, programs. Financial 
education, education that promotes an understanding of consumer, and 
personal finance concepts, is extremely important for all families, and 
is especially important for low-income families who are moving from 
welfare to work.
  While TANF focuses on moving families off cash assistance and into 
work, it fails to provide recipients with the tools they need to 
maximize their earnings and manage their expenses in order to achieve 
financial stability once they are employed. If we truly expect to move 
these families to achieve financial independence, we must give them the 
tools they will need to make that transition.
  One of these tools is a bank account. Millions of low-income families 
remain outside of the formal banking system, with many of them spending 
too much of their hard-earned dollars at costly check cashing 
operations. In fact, more than eight million families earning under 
$25,000 a year lack a checking or savings account. A study conducted by 
the United States Department of the Treasury in 2000 found that a 
worker earning $12,000 a year would pay approximately $250 a year just 
to cash their payroll checks at such an outlet. And, nearly 16 percent 
of the checks cashed at check cashing outlets are government benefits 
checks, including welfare benefit checks.
  In addition to expanding the number of banks that do business in low-
income communities, educating low-income unbanked families about the 
benefits of formal checking and savings accounts can significantly 
improve access to financial services.

[[Page 10482]]

  But, financial education isn't just about bank accounts and savings. 
It is also about protecting low-income families from predatory lending 
and devastating credit arrangements. Financial education that addresses 
abusive lending practices can help prevent unaffordable loan payments, 
equity stripping, and foreclosure. I strongly support legislative 
efforts to end predatory lending practices in our country, but until we 
do, ensuring that consumers are aware of unfair and abusive loan terms 
is a measure that will provide them some protection from these tactics.
  Finally, families leaving welfare for work face many challenges, 
including securing child care and transportation. One challenge that 
often is not mentioned, however, is the challenge of transitioning from 
a benefits-based income to a wage income. Financial literacy programs 
that educate families transitioning from welfare to work about taxes 
and tax benefits that they may be eligible for, such as the Department 
Care Tax Credit and the Earned Income Tax Credit, will ensure that they 
have access to these important work benefits.
  The Financial Literacy for Self-Sufficiency Act will allow states to 
use their TANF funds to collaborate with community-based organizations, 
banks, and community colleges to create financial education programs 
for low-income families receiving welfare and for those transitioning 
from welfare to work. As Federal Reserve Chairman Alan Greenspan has 
noted, ``Educational and training programs may be the most critical 
service offered by community-based organizations to enhance the ability 
of lower-income households to accumulate assets.''
  I hope members of the Senate Finance Committee will join my 
colleagues Senator Torricelli and Senator Kennedy and me in promoting 
financial education for our nation's TANF recipients when they act to 
create a reauthorization framework for our Nation's welfare program.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2628

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``TANF Financial Education 
     Promotion Act of 2002''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Most recipients of assistance under the temporary 
     assistance to needy families program established under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) and individuals moving toward self-sufficiency operate 
     outside the financial mainstream, paying high costs to handle 
     their finances and saving little for emergencies or the 
     future.
       (2) Currently, personal debt levels and bankruptcy filing 
     rates are high and savings rates are at their lowest levels 
     in 70 years. The inability of many households to budget, 
     save, and invest prevents them from laying the foundation for 
     a secure financial future.
       (3) Financial planning can help families meet near-term 
     obligations and maximize their longer-term well being, 
     especially valuable for populations that have traditionally 
     been underserved by our financial system.
       (4) Financial education can give individuals the necessary 
     financial tools to create household budgets, initiate savings 
     plans, and acquire assets.
       (5) Financial education can prevent vulnerable customers 
     from becoming entangled in financially devastating credit 
     arrangements.
       (6) Financial education that addresses abusive lending 
     practices targeted at specific neighborhoods or vulnerable 
     segments of the population can prevent unaffordable payments, 
     equity stripping, and foreclosure.
       (7) Financial education speaks to the broader purpose of 
     the temporary assistance to needy families program to equip 
     individuals with the tools to succeed and support themselves 
     and their families in self-sufficiency.

     SEC. 3. REQUIREMENT TO PROMOTE FINANCIAL EDUCATION UNDER 
                   TANF.

       (a) State Plan.--Section 402(a)(1)(A) of the Social 
     Security Act (42 U.S.C. 602(a)(1)(A)) is amended by adding at 
     the end the following:
       ``(vii) Establish goals and take action to promote 
     financial education, as defined in section 407(j), among 
     parents and caretakers receiving assistance under the program 
     through collaboration with community-based organizations, 
     financial institutions, and the Cooperative State Research, 
     Education, and Extension Service of the Department of 
     Agriculture.''.
       (b) Inclusion of Financial Education as a Work Activity.--
     Section 407 of the Social Security Act (42 U.S.C 607) is 
     amended--
       (1) in subsection (c)(1)--
       (A) in subparagraph (A), by striking ``or (12)'' and 
     inserting ``(12), or (13)''; and
       (B) in subparagraph (B), by striking ``or (12)'' and 
     inserting ``(12), or (13)'';
       (2) in subsection (d)--
       (A) in paragraph (11), by striking ``and'' at the end;
       (B) in paragraph (12), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(13) financial education, as defined in subsection 
     (j).''; and
       (3) by adding at the end the following:
       ``(j) Definition of Financial Education.--In this part, the 
     term `financial education' means education that promotes an 
     understanding of consumer, economic, and personal finance 
     concepts, including the basic principles involved with 
     earning, budgeting, spending, saving, investing, and 
     taxation.''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2002.
                                 ______
                                 
      By Mr. INOUYE.
  S. 2630. A bill to amend title 38, United States Code, to improve 
benefits for Filipino veterans of World War II and surviving spouses of 
such veterans, and for other purposes; to the Committee on Veterans' 
Affairs.
  Mr. INOUYE. Mr. President, today I rise to introduce legislation that 
would amend Title 38 of the United States Code to provide health care 
and burial benefits to all Filipino veterans of World War II and their 
spouses who reside in the United States.
  Many of you are aware of my continued advocacy on the importance of 
addressing the plight of Filipino World War II veterans. As an 
American, I believe the treatment of Filipino World War II veterans is 
bleak and shameful. The Philippines became a United States possession 
in 1898, when it was ceded from Spain following the Spanish-American 
War. In 1934, the Congress enacted the Philippine Independence Act, 
Public Law 73-127, which provided a 10-year time frame for the 
independence of the Philippines. Between 1934 and final independence in 
1946, the United States retained certain powers over the Philippines, 
including the right to call all military forces organized by the newly-
formed Commonwealth government into the service of the United States 
Armed Forces.
  The Commonwealth Army of the Philippines was called to serve with the 
United States Armed Forces in the Far East during World War II under 
President Roosevelt's July 26, 1941 military order. The Filipinos who 
served were entitled to full veterans' benefits by reason of their 
active service with our armed forces. Hundreds were wounded in battle 
and many hundreds died in battle. Shortly after Japan's surrender, the 
Congress also enacted the Armed Forces Voluntary Recruitment Act of 
1945 for the purpose of sending Filipino troops to occupy enemy lands, 
and to oversee military installations at various overseas locations. 
These troops were authorized to receive pay and allowances for services 
performed throughout the Western Pacific. Although hostilities had 
ceased, wartime service of these troops continued as a matter of law 
until the end of 1946.
  Despite all of their sacrifices, on February 18, 1946, the Congress 
enacted the Rescission Act of 1946, now codified as Section 107 of 
Title 38 of the United States Code. The 1946 Act deemed that the 
service performed by these Filipino veterans would not be recognized as 
``active service'' for the purpose of any U.S. law conferring ``rights, 
privileges, or benefits.'' Accordingly, Section 107 denied Filipino 
veterans access to health care, particularly for non-service-connected 
disabilities, and pension benefits. Section 107 also limited service-
connected disability and death compensation to 50 percent of what is 
received by their American counterparts.
  On May 27, 1946, the Congress enacted the Second Supplemental Surplus 
Appropriations Rescission Act, which duplicated the language that had 
eliminated Filipino veterans' benefits under the First Rescission Act. 
Thus, Filipino veterans who fought in the service of the United States 
during World War

[[Page 10483]]

II have been precluded from receiving most of the veterans' benefits 
that had been available to them before 1946, and that are available to 
all other veterans of our armed forces regardless of race, national 
origin, or citizenship status.
  The Health Care for Filipino World War II Veterans Act includes four 
provisions: health care and nursing home care access for Filipino 
veterans residing in the United States; dependency and indemnity 
compensation for surviving spouses of certain Filipino veterans, 
provided the surviving spouse lives in the United States; an increase 
in the payment amount from 50 to 100 percent for service-connected 
disability compensation for new Philippine Scout veterans residing in 
the United States and burial benefits for new Philippine Scout 
veterans. All these measures will assist Filipino veterans in their 
twilight years, and the bill is fully supported by the Department of 
Veterans Affairs.
  Throughout the years, I have sponsored several measures to rectify 
the lack of appreciation America has shown to those gallant men and 
women who stood in harm's way with our American soldiers and fought the 
common enemy during World War II. It is time that we, as a Nation, 
recognize our long-standing history and friendship with the 
Philippines. The legislation I introduce today will remove the burden 
of health care and burial costs for a very deserving group of highly 
decorated individuals: members of the Filipino Commonwealth Army and 
new Philippine Scouts who valiantly fought with the Allied forces in 
the Second World War. These groups have been neglected by the United 
States Congress.
  Heroes should never be forgotten or ignored; let us not turn our 
backs on those who sacrificed so much. Let us now work to repay all of 
these brave men and women for their sacrifices by providing them the 
veterans' benefits they deserve. I urge my colleagues to support this 
measure.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2630

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Health Care for Filipino 
     World War II Veterans Act''.

     SEC. 2. ELIGIBILITY FOR HEALTH CARE OF CERTAIN ADDITIONAL 
                   FILIPINO WORLD WAR II VETERANS RESIDING IN THE 
                   UNITED STATES.

       The text of section 1734 of title 38, United States Code, 
     is amended to read as follows:
       ``(a) The Secretary shall furnish hospital and nursing home 
     care and medical services to any individual described in 
     subsection (b) in the same manner, and subject to the same 
     terms and conditions, as apply to the furnishing of such care 
     and services to individuals who are veterans as defined in 
     section 101(2) of this title. Any disability of an individual 
     described in subsection (b) that is a service-connected 
     disability for purposes of this subchapter (as provided for 
     under section 1735(2) of this title) shall be considered to 
     be a service-connected disability for purposes of furnishing 
     care and services under the preceding sentence.
       ``(b) Subsection (a) applies to any individual who is a 
     Commonwealth Army veteran or new Philippine Scout and who--
       ``(1) is residing in the United States; and
       ``(2) is a citizen of the United States or an alien 
     lawfully admitted to the United States for permanent 
     residence.''.

     SEC. 3. RATE OF PAYMENT OF DEPENDENCY AND INDEMNITY 
                   COMPENSATION FOR SURVIVING SPOUSES OF CERTAIN 
                   FILIPINO VETERANS.

       (a) Rate of Payment.--Subsection (c) of section 107 of 
     title 38, United States Code, is amended by inserting ``, and 
     under chapter 13 of this title,'' after ``chapter 11 of this 
     title''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of enactment of this Act and 
     shall apply to benefits paid for months beginning on or after 
     that date.

     SEC. 4. RATE OF PAYMENT OF COMPENSATION BENEFITS FOR NEW 
                   PHILIPPINE SCOUTS RESIDING IN THE UNITED 
                   STATES.

       (a) Rate of Payment.--Section 107 of title 38, United 
     States Code, as amended by section 3(a), is further amended--
       (1) in the second sentence of subsection (b), by striking 
     ``Payments'' and inserting ``Except as provided in subsection 
     (c) or (d), payments''; and
       (2) in subsection (c)--
       (A) by inserting ``or (b)'' after ``subsection (a)'' the 
     first place it appears; and
       (B) by striking ``subsection (a)'' the second place it 
     appears and inserting ``the applicable subsection''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act 
     and shall apply to benefits paid for months beginning on or 
     after that date.

     SEC. 5. BURIAL BENEFITS FOR NEW PHILIPPINE SCOUTS.

       (a) Benefit Eligibility.--Subsection (b)(2) of section 107 
     of title 38, United States Code, is amended--
       (1) by striking ``and''; and
       (2) by inserting ``, 23, and 24 (to the extent provided for 
     in section 2402(8) of this title)'' after ``1312(a))''.
       (b) Benefit Rate for Certain Persons in the United 
     States.--Subsection (d) of such section is amended--
       (1) in paragraph (1), by inserting ``or subsection (b), as 
     the case may be,'' after ``subsection (a)''; and
       (2) in paragraph (2), by inserting ``, or whose service is 
     described in subsection (b) and who dies on or after the date 
     of the enactment of the Health Care for Filipino World War II 
     Veterans Act'' in the matter preceding subparagraph (A) after 
     ``this subsection''.
       (c) Conforming Amendment.--Section 2402(8) of such title is 
     amended by inserting ``or 107(b)'' after ``107(a)''.
       (d) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to deaths occurring on or after the 
     date of enactment of this Act.

                          ____________________