[Congressional Record (Bound Edition), Volume 155 (2009), Part 4]
[Senate]
[Pages 5434-5444]
[From the U.S. Government Publishing Office, www.gpo.gov]




NOMINATION OF HILDA L. SOLIS, OF CALIFORNIA, TO BE SECRETARY OF LABOR--
                               Continued

  Mrs. MURRAY. Mr. President, we are on the Solis nomination this 
afternoon.
  I ask unanimous consent that the following Senators on our side be 
recognized to speak: Senator Menendez for 10 minutes, Senator Sanders 
for 15 minutes, Senator Dodd for 15 minutes, and Senator Boxer for 10 
minutes.
  The PRESIDING OFFICER. To speak in that order?
  Mrs. MURRAY. No. These Senators requested that time, and we will go 
back and forth in the usual fashion.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  The Senator from New Jersey is recognized.
  Mr. MENENDEZ. Mr. President, I rise today to give my strong support 
to President Obama's choice to lead the Department of Labor.
  It is hard to stress enough how urgent it is for us to have a Labor 
Secretary at work in the face of this economic crisis: 3.6 million 
Americans have lost their jobs since this recession began in December 
of 2007--almost 600,000 in the last month alone--workers are losing 
their health care, their pensions, and their life savings.
  The American men and women who have been damaged the worst by the 
financial crisis we have had--the worst financial crisis in 
generations--need full unemployment benefits to carry their families 
through this period of transition and the benefit of job training to be 
able to meet the challenges of the 21st century economy.
  Those who still have a job to go to every day need a champion for 
their rights and their safety. As the American people struggle through 
these difficult economic times, it is more important than ever to have 
a fully functioning and fully staffed Department of Labor.
  At this moment, we need a Secretary of Labor who believes workers 
should not be intimidated when they try to organize. We need a 
Secretary of Labor who believes that after decades of stagnation, it is 
time for wages to rise. We need a Secretary of Labor who believes it is 
not acceptable for women to make 78 cents for every dollar a man earns, 
for African Americans to earn 80 cents and Latinos to earn 68 cents for 
every dollar their white counterparts earn.
  Some will argue that a recession is an inconvenient time to pay 
workers a fair wage or to protect them from exposure to dangerous 
chemicals because the economy will suffer under the weight of 
additional benefits or rights for employees. We need a Secretary who 
understands how false that argument is.
  For 8 years, we have seen administration policies punish workers for 
their efforts and treat their rights in a way that ultimately can't 
sustain their hopes, dreams, aspirations, and their families.
  The Bush administration virtually gutted the Department of Labor, 
drastically cutting its budget, choosing instead to trust CEOs and big 
business to look after the welfare of workers. In 8 years, the 
Department issued only one worker safety rule on its own accord. While 
the Department was neglecting to address safety in the workplace, it 
focused its attention on helping corporate interests weaken the rules 
for

[[Page 5435]]

overtime compensation. After 8 years, we have seen who actually 
benefits from these policies: No one.
  We now know that being pro-labor is pro-economic growth. We know a 
rising tide of wages can lift the ships of business as well, as 
American workers are also the customers who purchase our products and 
services. It is time we acted on a clear principle: An economy that 
works is an economy that works for everyone.
  I can think of no one better to take up the challenge than Hilda 
Solis. She has the best interests of American workers in her heart and 
her blood. She is the daughter of union workers, the first in her 
family to go to college. I had the privilege of serving with her in the 
House of Representatives. She has served the people of southern 
California in Congress for 8 years, not just advocating for their 
rights but for recovery, not just expanded help for workers but 
creating jobs to expand the workforce. She knows that with the right 
investments, we will fuel the creation of millions of green jobs, bring 
down energy costs and end our dependence on foreign oil.
  She has won friends on both sides of the aisle, and even when they 
don't agree with her on every issue, they cannot help but respect her 
work ethic, her intelligence, and her integrity. I know very much so 
that she is eminently capable to lead the Department of Labor. Also 
people throughout the country cannot help but admire history in the 
making. Hilda Solis would be the first Latina to hold the position of 
Secretary in a President's Cabinet. That is incredibly powerful for 
young Latinas across this country, a growing part of America's 
population who will look to a Hilda Solis and say that in fact 
everything is possible.
  I look forward to voting to confirm her today because America's 
workforce and our economy cannot afford to wait.
  With that, I yield the floor.
  The PRESIDING OFFICER. The Senator from Florida is recognized.
  Mr. MARTINEZ. Mr. President, I thank the Senator from New Jersey for 
supporting the nomination of Hilda Solis to be President Obama's choice 
to lead the Department of Labor. I too rise in support of this 
nomination. Having served in a President's Cabinet myself and gone 
through this arduous and difficult process of confirmation, I adhere to 
the principle that a President should get the right to nominate his 
Cabinet and should have the opportunity to name the people he chooses 
to work with. It is, obviously, up to the Senate to confirm and ratify 
those nominations but, assuming qualifications, it is something that 
ought to be forthcoming.
  I may have some policy differences with the nominee. I am sure that, 
from time to time, we may look at the world a little differently. I am 
sure I do not endorse everything my dear friend and colleague just said 
about the prior 8 years punishing workers and things of that nature. 
But I do believe it is important that we come together to recognize a 
fine American. Having looked at Congresswoman Solis's record, and the 
testimony before the Health, Education, Labor and Pensions Committee, 
and her answers to the committee's questions, I am satisfied that she 
carries the qualifications and will serve the Department of Labor with 
great distinction as Secretary.
  Congresswoman Solis graduated from California State Polytechnic 
University in Pomona and earned a Master's in Public Administration 
from the University of Southern California.
  She worked in the White House for President Carter in the Office of 
Hispanic Affairs, and was later appointed as a management analyst with 
the Office of Management and Budget in the civil rights division.
  As a member of the California State Senate back in 1996, she led a 
successful effort to raise the State's minimum wage from $4.25 to $5.75 
an hour.
  As U.S. Representative for California's 32nd district, she authored 
legislation that sought to protect and improve working conditions and 
the rights of farm workers, garment workers, the construction industry, 
janitors, State and local employees, and many others.
  She authored the Green Jobs Act of 2007, an effort aimed at promoting 
job creation and renewable energy, which was signed into law as part of 
the 2007 omnibus.
  I know there is a dynamic and unique relationship between the 
executive and legislative branches. We may not always see eye to eye on 
the issues. We may modify the President's proposals significantly 
through the committee and amendment process. But we always respect each 
other's positions and priorities.
  Congresswoman Solis has demonstrated hard work and experience. Her 
life is an inspiration to many. In the areas of labor, health care, and 
the environment, she has made her mark and has done a tremendous job to 
highlight the issues and many problems throughout our country that 
urgently need attention. She has done that with competence, diligence, 
and tremendous determination. She will bring those same qualities to 
the Department of Labor as the Secretary of Labor.
  I had the pleasure of working with the prior Secretary of Labor, who 
has a relationship with the Senate--Secretary Chao. She and I served in 
the Cabinet together. She served for 8 years in that role. Sometimes we 
faced many challenges, and I am sure that upon her confirmation, Hilda 
Solis will serve with distinction as well. But she will also be faced 
with many challenges, particularly in this difficult labor environment. 
There is no question, with unemployment at record highs, and continuing 
to rise, this is the time when the Secretary of Labor will be in a 
position where leadership can emanate throughout this country.
  I urge my colleagues to support the confirmation of Congresswoman 
Hilda Solis to be the next Secretary of Labor. She will be making 
history as the first Hispanic woman to serve in a President's Cabinet. 
I understand something about that, and I look forward to working with 
her in that capacity. It is a great day for America when we can see 
that people can rise as a result of the opportunities that this country 
opens up to all those who seek them.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. SANDERS. 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 is recognized.
  Mr. SANDERS. Mr. President, let me begin by saying that I have not 
supported all of President Obama's nominations, but I am on the floor 
today to very proudly and enthusiastically support the nomination of 
Hilda Solis to be our next Secretary of Labor.
  As a former Member of the House, I have had the honor and privilege 
of working with Congresswoman Solis on a number of very important 
issues over the years. I consider Congresswoman Solis not only an 
outstanding Member of that body but also a very good friend.
  In my view, there are very few Members of Congress who have spent as 
many years as she has in the fight to expand the middle class, in the 
fight to address the problems of poverty, in the fight to make sure all 
of our fellow Americans have health care as a right. I believe very 
strongly that Hilda Solis will make an excellent--excellent--Secretary 
of the Department of Labor.
  When I left the House and moved to the Senate, I was delighted to 
work with Congresswoman Solis to create the Green Jobs Workforce 
Training Program. This important initiative will not only lead to the 
creation of decent-paying jobs all over this country but will also help 
us combat the scourge of global warming and our dependence on foreign 
oil and help us move aggressively away from fossil fuels.
  Mr. President, as you well know, millions of Americans from 
California to the State of Vermont are caught up in the worst economic 
crisis this country has faced since the Great Depression. Our people by 
the millions are losing

[[Page 5436]]

their jobs. Our people are losing their homes. They are losing their 
health insurance. They are losing their pensions. They are losing their 
ability to send their kids to college. And perhaps most significantly, 
they are losing their hope, their belief that the American dream is 
still alive, that their kids will have at least a good, if not better, 
standard of living than our generation has.
  Millions of American workers in recent years have seen their wages go 
down, and they are working longer hours for lower wages. During the 
last 8 years, some 7 million American workers have lost their health 
care; millions are unable to find quality childcare despite the fact 
that husband and wife are both working, and they just do not know what 
to do with their kids; and millions of Americans are wondering right 
now whether the dream of a college education will, in fact, be 
available to their kids.
  What has happened over the last 8 years is, as the middle class has 
shrunk, poverty has increased, while the gap between the very wealthy 
and everybody else has grown wider. The United States of America can do 
better than that. Instead of seeing the middle class shrink and poverty 
increase, we have to see poverty go down and the middle class expand.
  The American people and the workers of this country are entitled to 
have a Secretary of Labor who will stand with them, who will be 
aggressive in fighting for the rights of workers from California to 
Vermont. The truth is that no Secretary of Labor, no matter how great 
he or she may be, is going to solve all of the important problems 
facing our country. But what working people have a right to know is 
that they will have a Secretary of Labor who, in fact, understands what 
labor is about and is on the side of working people; a Secretary of 
Labor who is committed to protecting workers throughout the country 
from unscrupulous employers who try to steal their pay and threaten 
their health and safety to pad the bottom line and enrich the CEOs on 
top. And God only knows we have seen a lot of that over the last 8 
years. For far too long, we have had a Labor Department that was more 
interested in protecting the actions of bad, unscrupulous employers 
than protecting the needs of hard-working employees. That has to 
change. When President Obama nominated Hilda Solis for Secretary of 
Labor, I think he sent a signal all over the country that that is going 
to change, that the rights of workers are going to be protected.
  There is perhaps no more challenging time to be Secretary of Labor 
than at this very moment. The problems workers are experiencing are 
enormous. But, frankly, I cannot think of any person who is more up to 
the task at hand than Hilda Solis. Her character and her work ethic are 
impeccable. Most of all, she will be a tireless advocate for working 
families throughout this country. For millions of American workers 
struggling to make ends meet, Congresswoman Solis is, indeed, a breath 
of fresh air.
  I will be strongly supporting the Secretary of Labor nominee Hilda 
Solis, and I hope all of my colleagues will as well.
  Mr. President, I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. DODD. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Kaufman). Without objection, it is so 
ordered.
  Mr. DODD. Mr. President, what is the business before the Senate?
  The PRESIDING OFFICER. The nomination of Hilda Solis to be Secretary 
of Labor.
  Mr. DODD. Mr. President, I rise this afternoon to speak on behalf of 
Congresswoman Hilda Solis to be our new Secretary of Labor. Before I 
begin, on behalf of all of us, regardless of which side of the 
proverbial aisle we sit on, I know we wish Senator Ted Kennedy the very 
best. He will be back in a matter of days and once again will be 
involved in the daily business of the Senate. Were he here at this 
moment, he would be adding his very strong and vibrant voice in support 
of this excellent nominee to be the new Secretary of Labor, Hilda 
Solis.
  We all know these are tough economic times. It hardly needs to be 
said. The American people are living it every minute of every day. Too 
many are facing--within minutes or hours--the loss of a job, the loss 
of a home, or the total evaporation of their retirement accounts. This 
was showcased by one family I met over the weekend in my home State. 
They saved for years and years to provide their children with the 
opportunity to get a higher education, just to see it all wiped out in 
a matter of days. And with their children reaching the cusp of higher 
education, they are left wondering what will happen. Despite all the 
commitments they had made to those children and all their efforts to 
make sure they were financially prepared, today they find themselves in 
a very different position. Unemployment is rising. Incomes are 
stagnating, while the costs of health care and housing and education 
are skyrocketing. In my State, unemployment rates have risen from 4.8 
percent in January of 2008 to 7.1 percent this past December. Every 
indication is these numbers are going to go up before they come back 
down again. Hopefully, they will come back down soon again.
  I know this evening we are all anticipating the remarks of our new 
President as he addresses the joint Houses of Congress in his first 
State of the Union Message. I have gotten to know President Obama well. 
We served together in this body. We served on two committees together, 
and we campaigned for the Presidency both with each other and against 
each other for a brief period of time. I can tell you, he is an 
optimistic, positive, confident President; a reflection of who we are 
as a people.
  This evening you are going to hear, in my view, a confident, 
optimistic President looking ahead to our future with hope, full of the 
aspirations I know we all share as Americans.
  But the difficult problems we have in front of us make the need to 
confirm a Secretary of Labor more pressing than ever. The Department of 
Labor enforces the laws and regulations dealing with fair wages and 
hours, job training, workplace safety and health standards, 
unemployment, and family and medical leave--each absolutely essential 
to a productive, healthy workforce and economy.
  Unfortunately, over the last 8 years, many of us have watched the 
Department of Labor with some concern as its focus moved away from the 
protection of employees in too many cases and focused more effort on 
protecting employers and denying workers their right to organize.
  I do not view this as the Department's role, and I know Congresswoman 
Solis does not either. It certainly was not the intention of Congress 
when it created the Department in 1913 and wrote in the authorizing 
language, and I quote:

       The purpose of the Department of Labor shall be to foster, 
     promote and develop the welfare of the wage earners of the 
     United States, to improve their working conditions, and to 
     advance their opportunities for profitable employment.

  Let me say, as an aside, the departing Secretary of Labor, Elaine 
Chao, is a good friend of mine, and I have known her for a long time. 
Of course, her husband is our distinguished minority leader. She was, I 
think, the only Cabinet officer to serve all 8 years of the Bush 
administration.
  Her job was, of course, to reflect the Bush administration's policies 
and judgments. I am not suggesting she disagreed with them, though I 
believe that from time to time she might have taken us on a different 
path, had she been in a position to solely decide what direction the 
country would go in. So when I express my disappointment over the 
direction of the Department of Labor over the last few years, I do not 
want it to reflect on the competency and the contribution Elaine made 
to our country.
  However, looking at some of the decisions of the Department of Labor 
and the National Labor Relations Board

[[Page 5437]]

under the last Administration--such as the outrageous overtime pay 
rules and the Kentucky River decisions that stripped tens of thousands 
of workers of the right to organize--I find it hard to believe they 
were made with the charter in mind that I described to you.
  At this moment of such wrenching economic turmoil, it is essential 
that the Department of Labor recommit itself to protecting the rights 
of workers, and we need a strong leader such as Hilda Solis at the helm 
to do that.
  The Department of Labor faces many challenges, not only in correcting 
what, in my view, were mistaken actions taken by the Bush 
administration but also in advancing the cause of workers' rights. One 
of the most important is the administration of the Family and Medical 
Leave Act, which will mark its 16th anniversary this month.
  Since becoming law, the Family and Medical Leave Act has helped more 
than 60 million Americans take time off to care for a newborn or 
adopted baby, to help a parent through an illness, to get better 
themselves, to keep an eye on their children, knowing that their job 
will be there when the family problem diminishes.
  I cannot think of how many occasions we have watched and supported 
one of our colleagues here in the Senate who has missed votes and 
committee hearings, for days or weeks on end, to recover from an 
illness or care for a spouse or a child who needed their attention.
  I think of my wonderful friend, the new Vice President of our 
country, and the Presiding Officer who spent years working with him. 
When tragedy struck Joe Biden's family at the outset of his Senate 
career, he spent a lot of time, as he should have, at home with his 
children, making sure they could get through that difficult time.
  He was applauded, and properly so, by his colleagues and others. No 
one ever suggested that Senator Joe Biden should not have his job back 
because he had missed work to be with his family.
  I remember Jake Garn, my good friend and a former chairman of the 
Banking Committee, who donated a kidney to one of his daughters. He 
spent days away from here in order to take care of that child and to 
get back on his feet himself. No one suggested Senator Garn of Utah had 
done anything but what a father should do in those circumstances. His 
job was never in jeopardy. His pay and his pension were not put at 
risk. Yet, prior to the passage of the Family and Medical Leave Act, 
millions of our fellow citizens struggled through similar situations 
every single day without the security that their jobs would be there 
when they came back.
  As the author of the Family and Medical Leave Act 16 years ago, I 
take as much pride in that bill as anything I have done here in 30 
years. Nothing is healthier for a family, during a time of crisis, than 
to be together. These families deserve to get the support and backing 
they need. I have worried over the past 8 years about the efforts of 
the Department of Labor to water down, to minimize, to create obstacles 
in the path of those who seek the family and medical leave protections.
  FMLA has also benefitted businesses. With lower turnover and a boost 
to morale, 90 percent of employers told the Department of Labor in 2000 
that the Family and Medical Leave Act had a neutral or positive effect 
on profits. No one should be forced in a crisis to make the impossible 
choice between work and family. Which is why I am so excited about the 
prospect of Congresswoman Solis leading the Department of Labor. She is 
a forceful advocate for working families and will bring to the job a 
genuine understanding and passion for the issues that affect families 
so deeply.
  I am also particularly encouraged by Hilda Solis's knowledge and 
enthusiasm for green job training. In the House of Representatives, 
where she served with distinction, she authored the Green Jobs Training 
Act, which will help train American workers for jobs in the renewable 
energy and energy-efficiency industries. I share her belief that the 
creation of good-paying, green-collar jobs is critical to both our 
economic and energy security.
  My own State of Connecticut is home to a number of exciting green 
energy companies, including world leaders in the design and manufacture 
of hydrogen fuel cells. I know the Congresswoman will bring her 
experience to the creation of new programs at the Department of Labor, 
within the Job Corps and elsewhere, to create a new generation of 
professionals. These programs will be critically important to our 
Nation's ability to transform and reinvigorate our economy.
  These are but a few of the many challenges that will face the 
Department of Labor in the coming days. Others include revitalizing and 
restoring the Occupational Safety and Health Administration, 
modernizing unemployment insurance, and preventing wage theft, which 
results in as many as 2 to 3 million workers not being paid minimum 
wage and millions more being denied the overtime pay that they rightly 
deserve.
  I would like to briefly conclude these remarks by addressing some of 
the issues being raised by some of my friends who have been critical 
and may, in fact, oppose this nomination. There have been questions 
about Congresswoman Solis's responsiveness to HELP Committee inquiries 
and about her work in an unpaid position on the board of a nonprofit 
workers advocacy organization. Congresswoman Solis has been very 
forthright and candid about all those issues. She has fully answered 
more than 140 questions from committee members, including 121 from my 
colleagues on the minority side.
  Congresswoman Solis is a highly respected public servant, an 
eminently qualified nominee to be Secretary of Labor, and, in my view, 
deserving of support from every Member of this body. In these 
challenging times, we need a Secretary of Labor as soon as possible. 
The workers of our country need a strong leader at the Department to 
fight for them and to protect their rights.
  Hilda Solis is that leader. I urge all my colleagues to support for 
this nomination and to vote for her when the vote occurs later this 
afternoon.
  I yield the floor.


                              The Economy

  The PRESIDING OFFICER. The Senator from Alabama.
  Mr. SESSIONS. Mr. President, I thank the Senator from Kentucky for 
his leadership in the Senate. I wish to share a few remarks about where 
we are financially in our country and what we need to do about it.
  I am very pleased the President has said he intends to ensure we 
eliminate the gimmicks that obfuscate the real nature of the financial 
crisis the country has. I think we can make some real progress on that. 
He would certainly have my support for that.
  I also am pleased he has repeated publicly what he said to us Members 
of the Senate in private meetings, that he believes we have a challenge 
in these long-term entitlement programs. They are out of control, they 
are on autopilot, and they are growing at twice the rate, three or four 
times the rate sometimes, of inflation. That is the kind of expanding 
cost that cannot continue.
  I believe he is sincere about that. I look forward to working with 
him on that. But that is down the road. Let's be honest. I wish to be 
honest here. I think he is correct on both these important issues, and 
I hope we can all work together. I would say we begin to ask when can 
we begin to get a containment on spending.
  I would point out to my colleagues the nature of the deficit we are 
now facing. It is unlike anything we have ever had before. We are not 
hyping this. I am telling you what the facts are. This is a 
Congressional Budget Office chart. It shows what we have been doing. I 
would briefly go over it. In 2004, the deficit hit $413 billion. That 
was President Bush's largest deficit to date. He was severely 
criticized for it. It amounted to 3.6 percent of total gross domestic 
product. It was the largest deficit in dollar terms since World War II, 
and he took a lot of heat for that. I was unhappy myself.

[[Page 5438]]

  The next year, 2005, it dropped to $317 billion. In 2006 it dropped 
to $248 billion. In 2007 it dropped to $161 billion, which was 1.2 
percent of GDP, heading in the right direction. The next year, 2008, 
was the first full budget of the Democratic Congress, but President 
Bush was still in office at that time. He proposed last spring to spend 
$150-plus billion to send out checks to everybody to make sure we did 
not go into an economic slowdown.
  I did not think that was a good idea. I did not vote for it. Now, I 
think only about 15 of us voted no. But I think almost every economist 
now in the hearings we have had in the Budget Committee showed it had 
almost no impact on the economy. But that one expenditure almost 
doubled the deficit. Then there were some other factors that went into 
it. It ended up at $455 billion, the largest deficit in the history of 
the country. That was last September 30, when the fiscal year ended, 
the 2008 fiscal year. Last September 30, we had a $455 billion deficit, 
the largest since World War II; I think the largest in dollar terms 
ever. But what about this year? You can see that chart and how long 
that line goes for the year we are in now, September 30, $1.371 
trillion, three times-plus the amount of money we had in a deficit in 
2008, the largest deficit in history.
  It only includes about $185 billion from the stimulus package we 
passed. That is a historic event. It is not a little, bitty matter. 
That was a big event. One reason that number looks so bad--and we ought 
to talk about it so we can get a real picture of why 2009 looks so much 
worse than the other years--is because the Congressional Budget Office 
has the responsibility to ascertain how much money the Government is 
actually spending. So they score programs.
  They scored the $700 billion Wall Street bailout, the TARP money, as 
costing the taxpayers $247 billion. It will probably happen over a 
series of years, but for some reason they decided to put it fully in 
2009. Maybe that is so they can blame President Bush for it, and he 
deserves a lot of blame for it. He spent half of it. But they scored it 
all in 2009.
  Then they also calculated the amount of money they believed the 
taxpayers will absorb as a loss from our takeover of Freddie Mac and 
Fannie Mae, those mortgage agencies of huge proportion that kicked off 
the crisis. We have been bailing them out, people have not talked about 
that very much, but we have been, and they score that at $240 billion. 
They stick that in 2009.
  They assume we will spend about $185 billion out of the $800 billion 
stimulus package we passed a few weeks ago, every penny of which went 
straight to the debt because we were already in debt. Every dollar we 
spent increased the debt. So they come out with $1.371 trillion. That's 
a big deal. In 2010, they expect the deficit to be $1.1 trillion based 
on current law, more than twice as big as the biggest deficit we ever 
had in 2008. They project by 2011 we will still have about $134 billion 
unspent from the stimulus package. That plus the regular deficit will 
show us a deficit of $632 billion.
  There are a couple things I wish to say. One is, the President has 
promised to cut the deficit in half by 2013. I do not think he used the 
figure $530 billion. Somebody has used that figure, perhaps. But by 
2013 he promised he would cut it in half.
  Well, if you cut $1.4 trillion in half, that is $700 billion. From 
the normal operating expectations, as calculated by the Congressional 
Budget Office, we will have cut the deficit in half in 3 years. So that 
is going to happen. That is not a great promise to make, frankly. I 
would note the $632 billion, other than the 2 previous years, 
represents the biggest deficit in the history of the Republic. So we 
are still a long way from having financial responsibility here.
  At one of our hearings, the chairman of the Budget Committee, Senator 
Conrad, produced a New York Times article. It talked about the dramatic 
reduction in the trade surplus that China has. That is because they are 
not selling as much as they were either. It was out of that surplus 
that China was buying so many of our debt obligations. Where does the 
money come from to fund this debt? Well, just like you, you have to 
give somebody a mortgage. They give you money; you give them a mortgage 
and promise to pay it back.
  Well, China has been the biggest buyer, and Japan has been a big 
buyer. Japan is already reducing its share of Treasurys. And China 
inevitably will because they do not have as much money, even if they 
desire to buy them.
  Also, some of the oil-producing countries had bought our Treasurys. 
Oil is $40 a barrel this year instead of $140 a barrel. They do not 
have as much money to buy them either. So I asked the witness, and the 
consensus was that we are in an unusually beneficial time at this 
moment to borrow because the world is unsure financially, and they are 
willing to buy American Treasurys at 1 percent or less. But that is not 
going to continue. So during this year we are going to have to go out 
on the market and find three times as many people to buy our Treasurys 
as we did last year. Next year, we are going to have over twice as many 
Treasurys for people to buy; and the next one, a record year also. We 
are out here getting people to buy this, and they are going to demand 
higher interest, particularly if they are worried--which they probably 
will be--that one way we are going to pay back this debt is by 
deflating our currency, debasing our currency, and paying back the 
dollars in cheaper dollars than what we borrowed. Then the people who 
loan us money are going to get nervous and demand higher rates. So the 
CBO projects a significant increase in interest rates in the outyears.
  This chart I have in the Chamber I think is relevant. It gives us 
some idea of the omnibus bill we are going to be seeing rather soon. 
What we understand is that the Democratic leadership in the Congress is 
going to submit to us an omnibus bill to complete this fiscal year. On 
top of the $800 billion we passed a couple weeks ago, they are going to 
propose one of the largest increases in discretionary spending in the 
history of the Republic.
  For example, it is an 8-percent increase. This year's discretionary 
spending--in addition to the stimulus package we passed--is going to be 
an 8-percent increase. Now, those of you who know a little bit about 
interest rates know if you get a 7-percent return on your money, the 
money will double in 10 years. So I would suggest at an 8-percent rate 
increase, we are headed to more than doubling the discretionary 
spending in our country.
  This is not good. President Bush was criticized, and sometimes 
rightly so, for excessive spending. But he did not propose an 8-percent 
increase in non-defense discretionary spending any year he was in 
office. So we could expect to see, if every year we had an 8-percent 
increase in discretionary spending--it goes into the baseline each 
year, and that is more than double what the current rate is. So within 
10 years, our basic spending for all the things we do--highways, 
agriculture bills, Department of Justice, prisons--everything we do in 
America will double.
  The only thing I am asking my colleagues is--and I will ask the 
President: I like what you are saying about confronting reckless 
spending. I do. But when?
  I suggest with regard to this chart, maybe it will give us a little 
bit of an indication about the point I want to make now. Let me say 
something I believe to be a fact. I believe it is a fact that the $789 
billion we sent out 2 weeks ago as a stimulus package will never be 
saved by any actions by this Congress or this President over the next 8 
years, if he stays the President for 8 years. He will not come close to 
doing that.
  I remember a few years ago Senator Judd Gregg, then chairman of the 
Budget Committee, proposed an idea to reduce Medicare spending--one of 
these big entitlement programs--by $40 billion over 5 years. They 
worked on it for months, and they thought they could save money here, 
there, and otherwise, and they could save $40 billion. We lost

[[Page 5439]]

it on the floor. A number of Republicans voted no. I think all the 
Democrats voted no. We could not cut $40 billion out of Medicare. 
Actually, it was not a cut. Medicare was increasing at 7 percent a 
year, and the reduction would have reduced the increase to about 6.5 
percent a year. It would have saved $40 billion and would have only 
reduced the growth from 7 percent or so to 6.5 percent or so. That is 
the way I remember the numbers, and we could not pass that.
  So we have added last week's $800 billion to the debt. This idea that 
somehow in the future we are going to all have a conference and we are 
going to figure out a way to get our house back in financial order, and 
by reducing Social Security or Medicare, is a matter that is not in 
reality with what I am seeing.
  Now, we could do more than Senator Gregg proposed. He tried to get 
something he thought everybody could agree on. But we could not. I 
think you could save more, but I am saying: How much are we going to be 
able to reduce Medicare? Not that much if we are honest with ourselves. 
We are not going to be able to reduce it that much. Over 20 or 30 
years, any savings, any integrity we bring to that process can mount up 
to hundreds of billions of dollars. There is no doubt about it.
  But to think we are going to wipe out what we have done already, and 
then to see the bill come forward with the fundamental operating 
legislation for our Government that will be on the floor within a 
matter of days, and to see that be an 8-percent increase--when the 
inflation rate is--what?--2 percent or less--four times the rate of 
inflation, this is fiscal responsibility? Give me a break. I am worried 
about it.
  So I will say, as we go forward, we will listen to some of the 
President's ideas tonight. He is such a fabulous spokesman for his 
values. He is so articulate. He is going to have a lot of support here. 
He is saying some very good things. But I urge my colleagues, if you 
applaud those statements about financial responsibility, ending this 
reckless spending, ending the surge of debt, and bringing some 
financial accountability, we are going to have to stand up and vote. We 
cannot keep sending up huge discretionary spending bills. This is not a 
war. These bills do not include homeland security and the Department of 
Defense. This is the basic operating of our Government. We are going to 
have an 8-percent increase every year? Well, maybe we will not next 
year, somebody will say. Maybe we won't year 2 or 3 when we are in 
better shape. Well, when do you start? Are you sure we are going to be 
serious 2 or 3 years from now if we are not serious today? Why would we 
be more serious then than we are today?
  Words, I have learned in this body, are less important than dollars 
and action that goes out the door. So let's be thinking about that. I 
do not want to be a recalcitrant, but I have to tell you the truth. The 
truth is, I am worried about where we are going. I hear words about 
concern over rising debt that is the largest surge in debt this country 
has ever seen. But I am not sure I am seeing any actions about it.
  Combined--let me share this figure with you--the two bills, the 
omnibus spending bill we will be voting on soon and the stimulus we 
saw, means we will spend 80 percent more money in 2009 than in 2008. My 
colleagues need to know we will be spending 80 percent more money as a 
result of these huge spending programs we have seen this year, which 
includes the TARP, which includes the Freddie and Fannie bailout, and 
includes the stimulus package.
  Those are my concerns. I hope my colleagues will at least consider 
the challenges we face. They are not small. They are quite large. We 
have never seen anything like this kind of spending. It seems they are 
determined to help us work through this debt spasm we are in by 
borrowing record amounts of money. I am thinking we need to get away 
from borrowing sooner rather than later and get ourselves on a path of 
sound money.
  I thank the Chair and yield the floor.
  The PRESIDING OFFICER. The Chair recognizes the Senator from 
California.
  Mrs. BOXER. Mr. President, what is the current order?
  The PRESIDING OFFICER. The nomination of Hilda Solis to be Secretary 
of Labor.
  Mrs. BOXER. Thank you very much, Mr. President. I am going to speak 
about Hilda Solis, someone I know very well, and someone I am very 
proud of.
  I could not help but hear the comments of Senator Sessions about this 
borrowing, and I do not know where Senator Sessions has been over the 
past 8 years, when we saw the debt go from $5 trillion to $10 trillion. 
And that was George Bush's program, supported by the Republicans. It 
went to Iraq. It went to tax cuts for the wealthiest Americans. All of 
a sudden, there is this newfound worry because we believe it is time 
the American people, who work for a living and who are struggling, get 
a hand out of this recession.
  As we will hear tonight from our new President, he understands that 
there is a time to stimulate this economy and then, of course, in the 
long term, as we Democrats did under Bill Clinton, get back to a 
balanced budget.
  Mr. SESSIONS. Mr. President, will the Senator from California yield?
  Mrs. BOXER. In a moment.
  We did it. We did it without one Republican vote. We passed the 
Clinton budget. I have the names of the Senators. I was fortunate 
enough to have a good researcher give me those. What they said when we 
passed that budget--we passed that budget under Bill Clinton because Al 
Gore, the Vice President, broke a tie. We couldn't get one Republican 
vote. And here is what they said, to a person: This budget is going to 
set us on the course of a recession. This budget is going to set us on 
the course of deficit spending. Guess what. They couldn't have been 
more wrong. That budget set us off on a course of the best economy 
known to humankind in peacetime--23 million new jobs and a balanced 
budget with a surplus. I remember looking at my children--because the 
debt was on the way down so fast at that time under Bill Clinton and 
the Democrats--and I said: What are we going to do? We can't buy 
Treasury bonds. There won't be any more. We won't have to borrow 
anymore. So it is extraordinary to me that my colleagues come up here 
now and they say: We can't spend this money.
  Yes, it is true people are hurting. My State has over 9 percent 
unemployment. There are pockets, I say to my friends, of 18 percent 
unemployment. I think the American people know there are no panaceas 
here. They know it is going to be hard. They know we may make mistakes, 
but they also know this: They want us to present hope to them--hope. 
Frankly, I wish to be associated with hope, not nope: Nope, we can't do 
this; nope, we can't do that; nope, it would be better not to do this. 
The American people--and I see what they are saying to people who ask 
them--are patient, and they know it is going to take some time. Yes, we 
may have to inject some funds into this economy because $1 trillion was 
lost out of this economy due to the recession. So yes, we are, in fact, 
injecting hope into this economy. We will pay it back. We will get back 
onto a balanced budget. We will do it in time, and we will do it 
responsibly.
  I am happy to yield to my friend without losing my right to the 
floor.
  Mr. SESSIONS. Mr. President, I thank the Senator from California for 
allowing me to interrupt. Most Senators, a lot of times, don't like to 
do that. She is a good advocate on the floor.
  I would just say that we need to get away from the political 
situation. As I showed in my chart, I would note to the Senator, the 
Bush administration had the largest debt since World War II in 2004 and 
was rightly criticized for that. After going down for 3 years, when we 
sent out the checks last year, it jumped to $455 billion, and we got 
not much for it. This is $1.3 trillion this year, $1 trillion the next 
year, $632 billion the next year, according to the Congressional Budget 
Office scoring. So I think this is a quantum leap higher than the 
deficits we saw in previous years.

[[Page 5440]]

  I know we are in a difficult time. I would just say I hope my 
colleagues will share President Obama's commitment to deal with the 
long-term structural problems we have. He is correct on that. He has a 
commitment to quit using gimmicks, which we have been using in the 
Senate too often to mask how big the deficit is. Those are good steps, 
but sooner or later we are going to need to reduce spending.
  I thank the Chair.
  Mrs. BOXER. Mr. President, I will take that as a question: Do I 
support President Obama's commitment to wrap his arms around the 
deficit and to do it with us, Republicans and Democrats? You bet I do, 
because I did it before under Bill Clinton. Unfortunately, then, we 
couldn't get one Republican vote. I praise my friend for showing the 
deficits under George Bush. I do. But I have to simply say--and this is 
a fact, this is a proven fact--that we didn't hear much from that side 
of the aisle when we had an open checkbook for Iraq. In fact, we didn't 
hear anything. They kept it open. We didn't hear much when they kept 
giving tax breaks to people who earn over $1 million, and that is what 
got us into this fix.
  Right now, as a temporary measure, yes, we are going to have to spend 
some. As I know President Obama will lay out tonight, he wants to jolt 
and jump-start this economy. We are going to do it.
  I am so proud we were able to reach across party lines in this Senate 
and get three Republicans to join us. I am so pleased that in my home 
State, we got six Republicans to join the Democrats and pass a budget 
there because when I went home--I went to Sacramento, our capital, and 
they were in deadlock. I think one of the things that helped me and 
others make the case was that we had to put party aside. We had to put 
ideology aside. We had to put egos aside. We did it with the stimulus 
bill because we only had three options there and they only had three 
options for the budget in California.
  One option is do nothing and be the party of nope instead of the 
party of hope. Do nothing. Do nothing. Well, when you do nothing, that 
is not a passive act. Doing nothing is, it seems to me, a hostile act. 
It is a hostile act on the working families of this country and of my 
State. So doing nothing, I believe, is irresponsible.
  Now, the other thing one could say in light of the stimulus or a 
budget one doesn't like is: I want to do it my way. My way or the 
highway. Here is my bill. I have written it. It is great. I have the 
perfect solution. Well, clearly, I am going to be able to write the 
perfect bill for me. My friend from Delaware can write the perfect bill 
for him. My friend from Georgia, I know he can write the perfect bill 
for Georgia. They love him there, and he would reflect everything they 
want. But at the end of the day, it doesn't work that way. That is also 
saying nope.
  So the only answer, it seems to me--the only answer--is for us to 
compromise. That is what we did on the stimulus. That is what my State 
Republicans did, six of them.
  By the way, they got censured by the party in my State. I just can't 
believe it. I just can't believe it. There was anger because they said 
they would never raise taxes and they signed a pledge. Well, you have 
to understand we are in uncharted waters with this downturn. There are 
hundreds of thousands of jobs lost every month. We all want to keep our 
pledges, but once in a while you have to look inside yourself and say: 
How can I help the people of my State?
  So I say to those Republicans here who helped us, I say to the 
Republicans at home in the State of California who helped us: Thank 
you, thank you, thank you. Because there are moments when we do have to 
take a risk in life for the greater good.
  I am looking forward to hearing the President tonight because I think 
what he is going to do--because I have watched him--he is going to give 
us an honest assessment of where we are as a nation. He is not going to 
sugarcoat where we are. He is going to tell it like it is, but then he 
is going to offer hope. He has a lot to say on that because we did get 
that first piece of the economic recovery bill through, the stimulus 
bill--very important. I think he is going to show us through the 
housing plan he has that it is going to help ordinary people. My friend 
from Georgia is here, and he worked so hard to get a tax credit in the 
stimulus bill for new home purchases. These are the kinds of things we 
need to embrace, regardless of political party. I certainly embrace it.
  Then he will talk about the banks. Speaking just for myself, I don't 
want to nationalize a bank. I really do not. If you go back to the 
Great Depression--I am reading a good book called ``The Defining 
Moment: FDR's Hundred Days.'' There was a big move not by the President 
but by a lot of people to nationalize the banks, and FDR said: No, we 
shouldn't be running the banks. So I am very hopeful that we will be 
able to do some things by converting preferred stock to common stock, 
to help get these banks on their feet and doing what they need to do, 
which is to lend.
  I have spent some time talking about our current situation, and 
needless to say, what we have seen in the past 8 years or so--and 
especially the past few years--is we have seen a real decline in the 
quality of life of our working families. Their voices have not been 
heard enough. That creates an imbalance in our lives.
  Everybody talks about the powerful unions. The unions that represent 
working men and women are representing fewer and fewer, and the voices 
of working men and women have gotten softer and softer. I think 
President Obama understands this, and he has given us a voice for 
working men and women in selecting Congresswoman Hilda Solis to be the 
Secretary of Labor.
  I wish to say to my friends who may not know Hilda as I know her--she 
is from my State and is an ally and a friend--she is one of the best 
people you will ever meet. She is one of the most humble people you are 
ever going to meet. She is one of the most intelligent people. She has 
knowledge of politics and how to get things done. She knows how to 
reach out to people who don't agree with her. She has a strong 
understanding of the struggles of working families because she has seen 
it in her district in California.
  Jobs lost since the beginning of the recession in December of 2007: 
3.6 million. Jobs lost in the last 3 months: 1.8 million. The 
nationwide unemployment rate is at 7.6 percent. In my State, it is 9.3 
percent. Long-term unemployed Americans: 2.6 million. That is why the 
stimulus was so important--to give them a little extra help getting 
through this nightmare. Underemployed Americans--that means Americans 
who are working at jobs for which they are overqualified--7.8 million 
Americans are working at jobs for which they are overqualified. So we 
can see this is not a recession that is just hitting a few pockets of 
America; it is hitting hard and it is hitting deep.
  Throughout her entire career, Congresswoman Solis has been a forceful 
advocate for working men and women in California and throughout the 
Nation.
  She was born and raised in the San Gabriel Valley in southern 
California. She was instilled with the values of hard work. Her father 
emigrated from Mexico, and he worked as a Teamsters shop steward. Her 
mother came to the United States from Nicaragua and worked at a local 
factory.
  She was the very first Latina elected to the California State senate. 
She led efforts there to pass a much needed increase in California's 
minimum wage. I can tell my colleagues this because I worked closely 
with her on this issue.
  In the 1990s, when she discovered that toxic sites were 
disproportionately located near minority and low-income neighborhoods, 
she wrote an environmental justice law to guarantee protections for 
those communities. For her dedication to this cause, she became the 
first woman ever honored with the John F. Kennedy Profile in Courage 
Award.
  She was elected to represent California's 32nd congressional district 
in the year 2000. I have worked with her very closely on many 
environmental issues, on worker issues, and it is a delight to

[[Page 5441]]

work with her. I have worked with her on veterans issues. Before she 
got tapped to be Secretary of Labor, Hilda and I sat next to each other 
on the plane, and she was telling me about an event she had where she 
holds a fair for the veterans in her community, in her district, and 
she brings together all of the various entities in the Federal 
Government that could help those veterans. This is a woman with a heart 
of gold.
  So I am confident that Hilda Solis will turn the many challenges we 
face into new opportunities for the American people. As Secretary, she 
will continue to promote policies that will invigorate our economy, 
protect our jobs, retrain our workforce. She will work for a 
sustainable energy future, which is going to mean lots of jobs and new 
technologies. She will ensure safe working conditions. She will enforce 
fairly the wage and hour laws we have on the books. We don't need more 
laws on the books; we have laws on the books for wage and hour. She 
will protect against worker discrimination. She will strengthen the 
middle class. Yet I think in her way she will make the case that people 
in the workplace should have a right to be represented. She will argue 
that. She also plans to improve skills development and job search 
assistance for unemployed workers and create new career opportunities 
for at-risk youth and our military heroes, as I mentioned.
  I am so thrilled she was picked for this job. I was very surprised 
because I had no clue President Obama was going to tap her. But when he 
did, I said to my family that this is a great choice. I think as 
Members of the Senate from both sides of the aisle get to know Hilda, 
they will soon trust Hilda. They will know they can talk to her about 
any subject, that she will listen, and that she will understand their 
point of view. After all, this is a woman who has been in elected 
office and she understands, as we all do, that there are differing 
viewpoints. She is not going to come in there and say: It is my way or 
the highway, Senator, so don't bother explaining to me. She will work 
with Senators. I know it because I have worked with her.
  If anybody needed a personal recommendation for Hilda Solis today, I 
hope they will trust me because you know me, and I don't stand up for 
every nominee, but I am so proud to stand for this one. I urge each and 
every one of my colleagues--Republicans, Democrats, Independents--to 
please support her nomination.
  I thank my friend from Georgia, who I know has been waiting. I yield 
the floor.
  The PRESIDING OFFICER (Mr. Nelson of Nebraska). The Senator from 
Georgia is recognized.
  Mr. ISAKSON. Mr. President, I rise to discuss the nomination of Hilda 
Solis to be Secretary of Labor. I do so as a Senator whose 
responsibility, constitutionally, it is to advise and consent on the 
nominees of the President. I also do so as ranking member of the 
subcommittee of the Health, Education, Labor, and Pensions Committee 
dealing with occupational safety. I will vote to confirm Ms. Solis this 
afternoon, after a great deal of study, after a lot of interaction, and 
a lot of direct conversations over issues about which Ms. Solis and I 
have different points of view.
  President Obama was elected, and it is his right to choose a Cabinet. 
It is the Senate's responsibility to give advice and consent on those 
nominees. After the due diligence and the process this nominee has gone 
through, making sure she was properly vetted, it is my belief that she 
is worthy of the appointment of Secretary of Labor of the United States 
of America. I am going to cast that vote because I will expect, as 
ranking member of the occupational safety subcommittee, the same type 
of conversation from the Secretary as we deal with some of the 
contentious issues we both know lie before us in the months and years 
ahead.
  One is card check. I am adamantly opposed to card check. I believe 
the right to a secret ballot is a fundamental right--not only at the 
ballot box in November but as to the question of whether you were 
organized and unionized in work. I know that when labor unions were 
formed and labor legislation was originally passed, it was the union 
movement that sought to ensure a secret ballot on behalf of the workers 
to make sure there was no intimidation from the company. That has 
served us well in this country for over 90 years and will continue to 
serve us for many years ahead. I know Ms. Solis differs on that, but I 
hope when the issue comes before us, she will be as respectful in the 
arguments and debates we will bring forward as she will of her own 
opinion in that regard.
  Secondly, as a Senator from the South and from the great State of 
Georgia, I am very proud of the right to work statutes of our State. It 
has served us well, as it has a number of States in this country that 
are right to work States. Those are States where an awful lot of 
manufacturing has come and been born, and even in difficult times today 
new manufacturing entities are coming to States, such as the Kia plant 
coming to La Grange, GA. I know Ms. Solis was at least equivocal in her 
response as to whether she supported the right to work status for 
States. I stand on the floor today and say unequivocally that I support 
them, and I support my State of Georgia and the right to work of all of 
its workers.
  With those points made, Ms. Solis's reputation and record and the 
handling of her personal responsibilities, such as her taxes and her 
responsibilities in the House, all pass muster in terms of the 
Committee, and I will vote in favor of her confirmation when the vote 
comes before us.


                            Difficult Times

  Mr. President, we are in difficult times. Tonight the President will 
speak to all of us. I look forward to those remarks with great 
anticipation.
  I told the President, when he appeared before our caucus just 3 weeks 
ago for lunch, that every night I pray for his success. And I do. Our 
people are in difficult times. We have difficult economic 
circumstances. It is imperative that we move forward together as 
Members of the House and Senate and the executive branch to find 
solutions to the challenges before us.
  Similar to most Members of the Senate, I have a few suggestions. I 
wish to offer four of them today as we lead up to the discussion 
tonight and the debate that will follow.
  Some of the economic difficulties in the United States are self-
inflicted by our own regulatory agencies. In particular, there are two 
areas I wish to discuss. First is the SEC. Last fall when the markets 
began to cascade down on Wall Street and when the financial stocks took 
their initial hit and the subsequent tumble, it was because of short 
sellers rushing to the market and shorting financial stocks and 
accelerating the decline of those values. I called Chris Cox, then the 
SEC Commissioner, and begged him to please implement the uptick rule, 
which would stop the short selling on the downside and protect the 
value of those equities.
  Fortunately, they did declare a moratorium for 27 days and stopped 
the short selling and things stabilized. Unfortunately, when that 27 
days was over, they reinstituted the former rule, short selling 
accelerated, and financial stocks deteriorated so that now they are 85 
to 90 percent below their value of 18 to 24 months ago. It is 
imperative the SEC reinstitute the uptick rule to ensure we don't have 
people coming into the marketplace and taking advantage of difficulties 
and suppressing the values of equities even greater than the market 
might otherwise dictate.
  Secondly, there has been a lot of speeches made on the floor about 
mark to market, and I will make one now. I am going to use specific 
examples to show you how the imposition of mark to market is hurting 
our financial institutions desperately, and it is disproportionately 
penalizing the people we serve.
  Mark to market basically takes the position that on any given day you 
are going to mark your assets based on their value of that day. Given 
the clients we have seen in mortgage-backed securities and real estate, 
marking to market has caused a tremendous decline in the asset side of 
the ledger

[[Page 5442]]

while liabilities continued to grow, which has caused capital problems 
in the banking system and exacerbated the financial problems we have 
today. In fact, mark to market should not be an arbitrary and 
capricious writedown to zero but, rather, should be a recognition of 
the transition of values in a down market or in an up market.
  The Senate, in 2005, in dealing with the pension crisis and defined 
benefit programs in America, asked businesses to come in one year and 
replenish retirement funds because the decline in the stocks was 
unrealistic. So we passed legislation that provided for a smoothing, 
meaning we amortized over years 3, 4, 5 or 6 the amount of money a 
pension fund was short, to give a company the ability to invest capital 
in the fund to restore it but not to deplete all the capital the 
company had to operate.
  Today, what is happening in our financial institutions, when the FDIC 
comes in and says you are going to mark to market, and this real estate 
asset that might have been worth $20 million 2 years ago is worth $6 
million today, you are going to take a $14 million hit on the asset 
side when, in fact, over time that asset might have brought 15, 16, 17, 
18 or maybe the original 20 percent because most real estate is 
absorbed over time and not in one fell swoop. It is very important our 
financial institutions be able to recognize value in a realistic 
environment. Some will tell you we don't want to do what Japan did--and 
we don't. Japan, in the 1990s, bought a lot of real estate and put it 
on the books at what they paid for it. As values declined, they didn't 
change the values in the books, and finally when they recognized them, 
they were underwater.
  That was an unrealistic approach. Equally unrealistic is today's 
approach of taking today's economy and saying: Well, because you cannot 
sell it for X today, that as its value went over time, we could smooth 
or amortize and approach it realistically. What is happening over and 
over again, mark to market is causing banks to do things that compound 
the things we are facing in the Senate and in the House and in our 
country.
  Last December, this body passed the ability for banks to carry back 
losses against profitable years, pull back some of the money they paid 
in taxes and provide liquidity. Because of that advantage, which we did 
for the right reasons, a number of banks took real estate assets in 
December of last year and wrote them off, even though they were 
performing, so they could take the loss carryback against income in 
better years. But now they are coming against the properties as a 
nonperforming asset and marking it to market in order to call the loan, 
with nobody out there willing to take them out. The unintended 
consequences of mark to market and the loss carryback that this 
Congress passed made it almost impossible for the commercial real 
estate industry and the development industry and the single-family real 
estate industry to compete in the United States today.
  So my suggestion is to install the uptick rule; second, stop the 
ridiculous nature of mark to market from absolute to absolute, and put 
in a mechanism of amortization or smoothing so the absorption of those 
assets over time is more reflective of reality and less of the dire 
straits we find ourselves in today.
  Third--and I appreciate very much the Senator from California 
mentioning the housing tax credit--I am very pleased that in the 
stimulus bill that passed, the credit is now $8,000 rather than $7,500. 
I am glad it is not repayable now but, in fact, is an actual credit. I 
am sorry it was means tested and limited to incomes of $75,000 or 
$150,000, and I am sorry it was only for first-time home buyers.
  I believe that until we fix housing, we can fix nothing else. We must 
fix housing first, and we must have an incentive and a reason for those 
people to return to the marketplace and begin to absorb the houses that 
become vacant because of foreclosure, transfer or because of default.
  So I hope we will continue to work on catalytic agents to inspire the 
consumers to come back to the marketplace and buy. That is essential. I 
think the tax credit of $15,000 for the purchase of any home by a 
family that occupies that home for 3 years is good for America, good 
for a business, and it is a small price to pay for what it will bring. 
CBO estimates its cost at $34.8 billion. They also estimate it would 
create 700,000 sales and 587,000 jobs in 1 day. That is no bad payback 
when you consider we have thrown billions after billions at the banking 
system and the stimulus system.
  Lastly--and I know the President will talk about mortgages today--I 
listened to his remarks last week and am encouraged by some of the 
things he said. I think there are some things we can do in terms of 
financing that can help us with our problem.
  No. 1, we do have to get back to sound underwriting. The President's 
proposals of a threshold of 31 percent debt service to gross monthly 
income illustrated that the President sees to it that we have 
fundamentals of qualifications under loans that are made, and I commend 
him for that.
  Secondly, I also recognize the fact that we can refinance loans that 
are in difficulty today at lower interest rates, amortize them over 30 
years, and, in fact, save people from foreclosure. Some we cannot save, 
but some we can, and I am for that. But we have to remember, just as 1 
in 10 houses in America is in default, 9 out of 10 are performing. To 
those people who are performing, who are making their payments, who are 
living by the rules, who are doing what is right, the same type of 
refinance opportunities ought to be available to them as are available 
to someone who is in trouble.
  I fully believe if we would direct Fannie Mae to issue debt with the 
full faith and credit of the United States of America behind it, we 
could generate a pool of resources to make loans for less than 5 
percent on a 30-year basis in the United States of America, loans that 
many people who are in trouble could actually find they could work 
their way through because it would lessen their monthly payment. But to 
those who are paying their payments but have rates of 5\1/2\, 6, 7\1/
2\, 8 percent, give them the same opportunity to reduce the cost of 
their debt service. Just because they are performing does not mean they 
should be penalized in a time in which we have 10 percent 
nonperformance.
  I stand here today on the floor of the Senate willing and able 
anytime, anyplace, anywhere to work with the President and work with 
the Members of this Congress to address the fundamentals of our economy 
and the fundamental problems we face.
  It is my sincere hope the SEC will take another look at the uptick 
rule and establish it. I think it will be an advantage to the market, 
advantageous to investors, and I think it will stop an egregiously bad 
process.
  Second, on mark to market, I don't want us to go the route of Japan, 
but I want us to go the route we went in this body in 2005 on pensions 
and let's smooth and amortize those obligations without catastrophic 
writedowns of assets which only cause difficulty in the financial 
community.
  Third, let's do fix housing first, and let's make sure we have a tax 
credit that is meaningful, available across the board, fosters home 
ownership, restores our marketplace, creates the 700,000 sales we need, 
and the 587,000 jobs we so desperately want.
  Lastly, as we make available creative financing and inexpensive 
financing for those in trouble to work their way out of a difficult 
mortgage, let's not forget those who are playing by the rules, the 9 
out of 10 who are making the payments. Let's make sure we make the same 
thing available to them so the rates at which they can refinance are 
equally competitive and as beneficial.
  Mr. President, I yield back the remainder of my time. I suggest the 
absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. ALEXANDER. Mr. President, I ask unanimous consent that the order 
for the quorum call be dispensed with.

[[Page 5443]]

  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ALEXANDER. Mr. President, I ask unanimous consent to speak for 3 
minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ALEXANDER. Mr. President, I simply wish to congratulate the 
Senator from Georgia for his leadership on housing. He has 
consistently, since he arrived in the Senate 6 years ago, been the 
Senate's foremost spokesman for housing, and we badly need it today. 
Housing helped us get into the economic mess we are in in the country, 
and housing will help us get out of the economic mess.
  As the Senator from Georgia has so succinctly said, there are a 
number of things we can do to keep us from going further down the hole 
and to help people who are in trouble and cannot pay their bills. But 
we want to get out of the hole, and the way we get out of the hole is 
to give people who are creditworthy and have money the opportunity to 
buy a home. The Isakson amendment, as originally passed by the Senate, 
provided a $15,000 tax credit and would do that. It would create 
demand.
  The idea of low-interest mortgage rates which Republicans have 
offered to give millions of creditworthy Americans, for the next year, 
an opportunity to have a low-interest mortgage to buy a home or 
refinance their home would help us get out of the housing hole. We are 
all in favor of helping those people who are hurting, but that is not 
going to end the economic crisis. We want to climb out of this economic 
mess, and the way to get out of it is to get out of the housing hole we 
are in. The way to do that is through the Isakson amendment that 
creates a $15,000 tax credit for homebuyers and to provide a low 
mortgage interest rate.
  I thank the Senator for his eloquence and his persistence. I hope 
more and more Members on both sides of the aisle and this country will 
hear his call to fix housing first.
  I yield the floor.
  (At the request of Mr. Reid, the following statement was ordered to 
be printed in the Record.)
 Mr. KENNEDY. Mr. President, I am pleased and proud that the 
Senate today is taking up the nomination of Hilda Solis for Secretary 
of Labor. Representative Solis is an extraordinary person, with an 
impressive background in public service. Anyone familiar with her work 
and her many accomplishments can attest that she is a truly 
inspirational leader. In the face of the current, unprecedented 
economic crisis, her confirmation to this important position is 
especially significant.
  Each day, the headlines contain troubling new economic reports. 
Americans lost 3 million jobs last year. Mr. President, 2.6 million 
have been looking for work for more than 6 months, 2.3 million have 
lost their homes, 31 million rely on food stamps to put food on the 
table.
  But this economic crisis is not just about numbers on a page or a 
lead story on the evening news. It is about what is happening to 
millions of working families. They are enduring tremendous hardships, 
and they know their friends and neighbors are suffering as well. The 
recovery bill passed under President Obama's leadership is a 
significant step in the right direction, but we still have an enormous 
challenge ahead of us.
  To rebuild our economy, we must restore security for working people. 
They need to know that they can get up and go to work in the morning 
without worrying about a pink slip, that they will earn a fair day's 
pay for a fair day's work so they can support their families, and that 
they can provide a better future for their children and a secure 
retirement for themselves.
  Most of all, they want leaders in government who understand how 
important these basic necessities are. That is why Hilda Solis is the 
right choice for Secretary of Labor.
  Representative Solis is from a hard-working American family. Her 
father was a farmworker, a railroad worker, and a laborer in a battery 
recycling plant. Her mother worked for 22 years on the assembly line in 
a toy factory. She watched her parents sacrifice all their lives to 
build a better future for her and their other children. Because of 
their struggles, Hilda became the first person in her family to go to 
college.
  Hilda Solis knows from deeply personal experience the challenges that 
American families face, because she has lived these challenges herself. 
And she has brought the lessons she learned from those years to her 
career in public service.
  Since her earliest days in public life, Hilda has put working 
families first. Whether it's fighting to keep toxic waste out of poor 
communities, championing legislation to protect victims of domestic 
violence, or leading efforts to train our workforce for the ``green 
collar'' jobs of the 21st century, she has never turned away from a 
challenge. She has never hesitated to stand up for what is right.
  In 2000, she became the first woman to receive the Profile in Courage 
Award for her remarkable work as a California State senator. The award 
is given each year to those people who have demonstrated the political 
courage that President Kennedy so admired, and Hilda Solis exemplifies 
these outstanding qualities. As I said at the time she received the 
award, ``The extraordinary successes of Hilda Solis as a member of the 
California legislature show the power of one person with vision, 
ability, dedication, and courage to overcome even the most powerful 
forces of oppression and resistance.''
  Now, again, Hilda has powerful forces to overcome, and tremendous 
challenges ahead. I have every confidence that she is the right person 
for the job. She is exactly who we need at the helm of such an 
important agency at this critical time for out country.
  America's workers are the best in the world, and they deserve our 
best efforts to help them through these difficult times. And they 
deserve to have the best possible advocate on their side. Today, we 
will do them a great service by confirming Hilda Solis.
  She is a true hero for working families, and we are fortunate to have 
someone of her tremendous talents at the Department. I look forward to 
working closely with our new Secretary of Labor to tackle the immense 
challenges facing America's workers, and to bring job security and real 
opportunity for all Americans.
  Mrs. FEINSTEIN. Mr. President, I rise today to support the nomination 
of my fellow Californian, Representative Hilda Solis, to be the next 
Secretary of Labor.
  President Obama has selected Representative Solis to serve in his 
Cabinet because she is an experienced, committed, and effective public 
servant.
  Representative Solis has dedicated her life to public service and to 
improving the lives of those in her community.
  As the daughter of immigrants, Representative Solis epitomizes the 
possibilities of the American dream. Her parents worked hard to ensure 
that she and her siblings could attain all that this country has to 
offer, and this nomination is proof that, in this country, anything is 
possible.
  Representative Solis was the first member of her family to attend 
college and in 1979 earned her undergraduate degree in Political 
Science from the California State Polytechnic University, Pomona.
  In 1981, she completed a master's degree in public administration at 
the University of Southern California. Her career in public service 
started in President Carter's administration, where she served as the 
Editor-in-Chief of Publications in the Office of Hispanic Affairs.
  After returning to California, she ran for office and was elected to 
the Rio Hondo Community College Board in 1985.
  In 1992, Representative Solis was elected to the State Assembly, and 
2 years later became the first Hispanic woman to serve in the 
California State Senate.
  As the Chairwoman of the powerful California State Senate Industrial 
Relations Committee, she was instrumental in the successful battle to 
increase the state minimum wage.

[[Page 5444]]

  She has also been a tireless fighter for environmental justice. In 
1999, despite strong opposition from industry groups, legislation that 
she authored was enacted to protect disadvantaged communities from the 
environmental toxins and pollutants that are disproportionately located 
in such areas.
  Her effort earned her the Profile in Courage Award from the John F. 
Kennedy Library Foundation in 2000, the same year she was elected to 
the House of Representatives.
  In Congress, Representative Solis has demonstrated her commitment to 
expanding opportunities for job training, which is essential for our 
economic recovery.
  She truly understands the potential of clean energy and solar power 
to propel the economy of the 21st century. To this end, Representative 
Solis authored legislation to provide more than $100 million for 
``green collar'' jobs training and has been a pioneer in this arena.
  Representative Solis is a woman of common sense and, I believe, sound 
judgment.
  She understands that the Secretary of Labor must be responsive to the 
voices of both management and labor. As Secretary of Labor, she will be 
a champion for workers across America.
  Given the economic crisis our Nation confronts, I am confident that 
Representative Solis will work to promote policies that ultimately will 
create jobs, benefiting businesses and workers across the board.
  The economic challenges we face at this moment are considerable, and 
the task at hand is substantial.
  At a time when so many Americans are seeking jobs, it is critical 
that we have a Secretary of Labor who is ready to tackle these problems 
and be responsive to the needs of all workers.
  Representative Solis understands the struggles that so many Americans 
are facing. She knows how to get things done, and she knows that there 
is no time to waste.
  Representative Solis is well prepared for the task at hand, and it is 
time for the President to have his choice for Secretary of Labor 
confirmed.
  I urge my colleagues to join me in confirming Representative Solis 
without further delay.
  Mrs. MURRAY. Mr. President, I thank all of my colleagues for their 
remarks today, including the distinguished ranking member of our HELP 
Committee, the Senator from Wyoming, and the ranking member on my 
Subcommittee on Employment, the Senator from Georgia. We have all 
worked together on a number of issues that are important to the well-
being of workers in this country, and today is no different as we 
consider the nomination of Hilda Solis to serve as President Obama's 
Labor Secretary.
  As a committee and as a body, we have done our due diligence in 
reviewing her nomination and materials. Now it is time to move forward.
  Working families across the country are facing the hardest of 
economic downturns. Most of them have never experienced anything like 
this. It is affecting everyone across our country. Earlier today, we 
learned that about 303,570 people in my home State of Washington were 
unemployed and looking for work in January. That is the largest number 
ever in my State. That is over 303,000 families who are now wondering 
how they are going to be able to pay their bills or keep their house or 
afford health care or even save for retirement.
  Workers in my State and across the country cannot afford to wait one 
more day for an advocate in this administration who will make their 
voice heard as we work to repair our country's economy. They cannot 
afford to wait any longer for a new leader at the agency that is 
responsible for unemployment insurance, job training, and placement 
services, protecting the health and safety of our workers on the job, 
and ensuring their rights in the workplace are protected. We have to 
have a Labor Department that can move into high gear to meet workers 
where they are. Hilda Solis stands ready to answer that call.
  Before I conclude, I want to take just a minute to thank a number of 
people who helped us to get to this point. In addition to the 
distinguished ranking member on the HELP Committee, Senator Enzi, and 
the ranking member on our subcommittee, Senator Isakson, and all of 
their staff members, I wish to recognize and thank Senator Kennedy who 
is the chairman of our Health, Education, Labor, and Pensions 
Committee. His dedication to America's working families is unmatched. 
And his staff, including Portia Wu and Lauren McFarren, have dedicated 
countless hours to moving this nomination forward.
  I also thank Senator Dodd, who chaired the HELP Committee executive 
session that reported Representative Solis out of committee, bringing 
us a step closer to today's confirmation.
  Let me also thank my staff who have worked so hard with me: Gerri 
Fiala, Crystal Bridgeman, Mike Waske, Mike Spahn, and Stacy Rich. I 
appreciate all of their joint efforts to getting us here today.
  Of course, I thank our great floor staff who worked tirelessly to 
help move this process forward.
  Finally, I want to particularly thank Representative Hilda Solis for, 
once again, answering the call to serve. We expect the final vote on 
her nomination shortly. I encourage all Senators and colleagues to 
support her confirmation on behalf of all the working families in our 
country who need a voice in Washington, DC.
  Mr. President, I yield back the remainder of time and ask for the 
yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The question is, Will the Senate advise and consent to the nomination 
of Hilda L. Solis, of California, to be Secretary of Labor?
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. DURBIN. I announce that the Senator from Iowa (Mr. Harkin) and 
the Senator from Massachusetts (Mr. Kennedy) are necessarily absent.
  I further announce that, if present and voting, the Senator from Iowa 
(Mr. Harkin) would vote ``yea.''
  The result was announced--yeas 80, nays 17, as follows:

                       [Rollcall Vote No. 66 Ex.]

                                YEAS--80

     Akaka
     Alexander
     Barrasso
     Baucus
     Bayh
     Begich
     Bennet
     Bennett
     Bingaman
     Boxer
     Brown
     Brownback
     Burris
     Byrd
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Cochran
     Collins
     Conrad
     Corker
     Dodd
     Dorgan
     Durbin
     Enzi
     Feingold
     Feinstein
     Gillibrand
     Graham
     Grassley
     Gregg
     Hagan
     Hatch
     Hutchison
     Inouye
     Isakson
     Johanns
     Johnson
     Kaufman
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Martinez
     McCain
     McCaskill
     McConnell
     Menendez
     Merkley
     Mikulski
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Pryor
     Reed
     Reid
     Rockefeller
     Sanders
     Schumer
     Shaheen
     Snowe
     Specter
     Stabenow
     Tester
     Udall (CO)
     Udall (NM)
     Voinovich
     Warner
     Webb
     Whitehouse
     Wyden

                                NAYS--17

     Bond
     Bunning
     Burr
     Coburn
     Cornyn
     Crapo
     DeMint
     Ensign
     Inhofe
     Kyl
     Risch
     Roberts
     Sessions
     Shelby
     Thune
     Vitter
     Wicker

                             NOT VOTING--2

     Harkin
     Kennedy
       
  The nomination was confirmed.
  The PRESIDING OFFICER. Under the previous order, the motion to 
reconsider is considered made and laid upon the table. The President 
will be immediately notified of the Senate's action.

                          ____________________