Thursday, November 01, 2012

Sen. Chuck Grassley of Iowa today made the following comment on the aftermath of MF Global's collapse.  Grassley is a senior member of the Agriculture Committee.

"This week marked the one-year anniversary of MF Global's filing for bankruptcy protection.  While I'm pleased many people have received a large share of their money back from this fiasco, we still need to know more about what happened.  This is not a case of 'all's well that ends well.'  Even if farmers and investors ultimately get a substantial amount of their money  back through the bankruptcy process, what if they end up losing millions of dollars?  What about the shaken confidence in our regulators and the commodity trading system in general?   And what about the next time?  To date, there have been no announcements of criminal prosecutions and no clear explanation of how and why MF Global lost customer money that was supposed to be segregated.

"Now, the Commodity Futures Trading Commission is issuing proposed regulations in response to the MF Global and Peregrine Financial collapses.  More regulation isn't going to ease farmers and investors' concerns.   We don't even know what exactly happened at MF Global, so how can we be sure new regulations will help?  What ultimately would bring confidence back to those who participate in the futures market is knowing the regulators conducted a real analysis of what went wrong at MF Global, then found and implemented the best solution for preventing these incidents and prosecuted responsible parties if necessary.   Solutions might be better enforcement of existing regulations or targeted new regulations.  But proposing new regulations without a clear understanding of what went wrong puts the cart before the horse.   It doesn't restore the confidence that's been disrupted."

WASHINGTON, D.C.–U.S. Senators John Thune (R-S.D.) and Chuck Grassley (R-Iowa) continue to press for answers about the failed stimulus-funded battery company, A123. Thune and Grassley, who have taken the lead in seeking answers from both the Obama administration and A123 on the use of taxpayer dollars to fund the now-bankrupt green energy company, today sent a letter to U.S. Treasury Secretary Timothy Geithner. The letter outlines the Senators' concerns about reports that China-based Wanxiang Group Corp. intends to provide debtor-in-possession bankruptcy financing of A123, which has now received approximately $130 million of a $249 million stimulus grant and numerous Department of Defense contracts. Thune and Grassley's letter presses Geithner, who has oversight of the Committee on Foreign Investment in the United States (CFIUS), to protect U.S. military and taxpayer interests while reviewing the potential transaction.

"A123 has received millions of taxpayer dollars to develop technology and intellectual property that should not simply be shipped to China," said Thune. "Considering A123's grid energy storage activities and active military contracts, the Obama administration must thoroughly scrutinize any transaction that would lead to A123 being owned by a foreign company. After several attempts, Senator Grassley and I have yet to receive straightforward answers from the administration on taxpayer-backed A123. Given the urgency of the bankruptcy process, we expect the administration to respond to our questions without delay."

"When Senator Thune and I started asking questions about A123, the Department of Energy promised it was monitoring every aspect of A123's financial plans to make sure the American people's interests were protected," said Grassley. "It looks as if that effort has failed. A Chinese company could still gain access to technology supported by U.S. taxpayers and developed in part to help the Department of Defense. Since the Administration so far seems unconcerned about this possibility, this review by the Committee on Foreign Investment in the United States is the last line of defense. Without that intervention, the benefit of U.S. taxpayer dollars and military technology might go right to China. That can't stand."

On August 14, 2012, Thune and Grassley sent a letter to the Department of Energy after A123 announced a $450 million investment deal with Wanxiang to express concern about tax dollars going to a struggling company. There were clear indications that A123 was having financial problems even as the administration continued to pour millions of taxpayer dollars into the failing company.

On October 9, 2012, Thune and Grassley sent a letter to A123 expressing their concerns regarding the company's potential agreement to grant Wanxiang majority control of the company. On October 16, 2012, A123 filed for Chapter 11 bankruptcy and appeared to withdraw from the deal with Wanxiang. However, recent reports indicate that Waxiang intends to provide a $50 million in debtor-in-possession loan for A123 and intends to bid on A123's assets as part of the bankruptcy proceedings, which would likely require CFIUS approval.

 

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WASHINGTON - Senator Chuck Grassley, Ranking Member of the Senate Committee on the Judiciary, today pressed Attorney General Eric Holder to delegate a presidential-mandated review of FBI whistleblower protections to the department's Inspector General.

Grassley said that the Justice Department has an abysmal record when it comes to rectifying FBI whistleblower cases.

The letter from Grassley to Holder comes after an October 10 directive from the President that is intended to protect whistleblowers with national security clearances against retaliation.  The directive requires a review within 180 days from the Attorney General in consultation with the Special Counsel and FBI employees.  The letter questions the potential conflict of interest created by having the Attorney General review the department's performance.

"There is no logical reason to empower people who have such a horrendous record on whistleblowers with the responsibility to determine whether the current process helps FBI whistleblowers," Grassley said. "The Attorney General and his Deputy have already allowed cases to languish for far too long.  One case has been sitting at the Justice Department for more than 10 years, with no end in sight.  That's unacceptable."

Grassley is a strong supporter of whistleblower protections.  He is an original cosponsor of the Whistleblower Protection Enhancement Act which bolsters the 1989 Whistleblower Protection Act after it had been weakened by rulings of the Merit Systems Protection Board and the Federal Circuit Court of Appeals.  An amended version of this bill passed the House of Representatives on September 28, and may be considered by the Senate after the election.  Grassley had co-authored the 1989 law with Senator Carl Levin for government employees who stand up and speak out against fraud, waste and mismanagement.  He also pushed then-Attorney General Janet Reno and President Bill Clinton to implement whistleblower protections for FBI employees that were authorized by Congress, but never implemented.  As a result of Grassley's work, President Clinton issued a presidential memorandum in 1997 ordering the Attorney General to create a whistleblower adjudication and appeals process.

Grassley also authored the 1986 update of the False Claims Act with qui tam provisions to empower private citizens who had information about fraudulent activity by government contractors to bring wrongdoing forward and sue in the name of the government.  To date, these whistleblower provisions have recovered more than $30 billion for taxpayers that otherwise would be lost to fraud.

In 2009, Grassley and Senator Patrick Leahy won passage of the Fraud Enforcement and Recovery Act which made the most significant improvements to the False Claims Act since 1986.  The law restores the scope and applicability of the False Claims Act where it had been limited by court decisions.  This effort also revised criminal laws to help prosecute mortgage fraud, securities fraud, and complex financial crimes that led to the 2008 financial crisis.

In addition, Grassley authored the 2006 overhaul of the IRS whistleblower program to fight major tax fraud.

Here's a copy of the text of the letter.  A signed version of the letter can be found here.

 

November 1, 2012

Via Electronic Transmission

The Honorable Eric H. Holder

Attorney General

U.S. Department of Justice

950 Pennsylvania Avenue, N.W.

Washington, DC  20530

 

Dear Attorney General Holder:

I write today regarding the recent Presidential Policy Directive, PPD-19 (herein Directive), entitled "Protecting Whistleblower with Access to Classified Information" that was issued by the President on October 10, 2012.[1] This Directive is intended to protect whistleblowers with national security clearances against retaliation.  Section E of the Directive requires you, in consultation with the Special Counsel and employees of the Federal Bureau of Investigation (FBI), to provide a report to the President assessing the effectiveness of the regulations that protect FBI whistleblowers.  While I welcome the Directive and the effort to provide some level of whistleblower protection to government employees in the Intelligence Community, I am deeply concerned about the current state of these protections for FBI employees and the Justice Department's role in adjudicating retaliation claims brought forward by FBI whistleblowers.

As you are aware, Section 2303 of Title 5 defines prohibited personnel practices in the FBI, and Part 27 of Title 28 of the Code of Federal Regulations lays out the process for investigating and adjudicating claims of retaliation filed by FBI employees.  This process was created following a Presidential Memorandum issued by President Clinton in 1997.[2] These regulations detail an investigatory phase conducted by the FBI's Office of Professional Responsibility (OPR) or the Department of Justice's Office of the Inspector General (OIG), an adjudicatory phase conducted by the Office of Attorney Recruitment and Management (OARM), and an appeal phase conducted by the Deputy Attorney General.  The regulations also proscribe timelines for each phase of the process to ensure that cases do not linger without a resolution.  Unfortunately, as history has shown, the Department has been woeful in meeting these timelines.

Specifically, I remain concerned about the treatment of two FBI whistleblowers whose cases have languished for years at the Department, namely, the cases of Jane Turner and Robert Kobus.  In 2002, Special Agent Turner exposed misconduct by FBI agents when she revealed that they removed "souvenirs" from New York's Ground Zero, the site of the 9-11 terrorist attacks.  A decade later, and after a federal jury has ruled in her favor finding discrimination on the part of the FBI, Agent Turner's case has been continually stalled with appeals and is still open?most recently after Deputy Attorney General Cole remanded the case for additional proceedings before OARM.  Mr. Kobus's case has also faced unwarranted delays.  Kobus blew the whistle on timecard fraud in the FBI in 2007 and the OIG found that the FBI retaliated against him for his actions.  Despite the unequivocal findings of the OIG, Kobus' case remains unresolved after five years.  Simply put, the delays in both of these cases call into question the Department's ability, and willingness, to follow through on FBI whistleblower cases in a fair and timely fashion.

The Directive requires you to complete the review of the FBI whistleblower process within 180 days.  Given the lengthy delays in retaliation cases that are still pending before the Department, and given the role that the Deputy Attorney General has played in these cases, I have serious misgivings about the ability of the Department to fairly review the FBI whistleblower process and to do so within the 180 day timeframe.

The Directive's requirement that the review involve the Special Counsel and FBI employees?which should, at the very least, include those who currently have whistleblower complaints pending before OARM?creates the possibility of a conflict of interest in reviewing the Department's performance.  Accordingly, I ask that you delegate this review to the Department's Inspector General.  The OIG would offer a more objective and accountable analysis of the regulations prescribed in the Directive. Further, it would allow you to continue to focus resources on closing these cases that continue to languish before the Department, instead of devoting resources to this review.

I strongly support whistleblower protections and will continue to work hard to see that all FBI employees who reveal fraud, waste, and wrongdoing receive fair and equitable treatment at the FBI and within the Department.  This Directive, if implemented properly, could provide temporary relief for whistleblowers within the Intelligence Community.  However, the Department has a lot to prove to FBI employees, the Congress, and the American people that whistleblowers will be treated fairly.  As a first step toward this, I encourage you to strongly consider my request to designate the OIG to conduct the review of FBI whistleblower protections as outlined in the President's Directive.

Sincerely,

Charles E. Grassley

Ranking Member

 

Cc:       The Honorable Michael E. Horowitz, Inspector General, U.S. Department of Justice

The Honorable Patrick Leahy, Chairman


[1] The White House, Presidential Policy Directive 19: Protecting Whistleblowers with Access to Classified Information, (October 10, 2012), http://www.fas.org/irp/offdocs/ppd/ppd-19.pdf.

2 Memorandum on Delegation of Responsibilities Concerning FBI Employees Under the Civil Service Reform Act of 1978, 62 Fed. Reg. 23,123 (April 14, 1997), available at http://www.gpo.gov/fdsys/pkg/FR-1997-04-28/pdf/97-10984.pdf.






[1] The White House, Presidential Policy Directive 19: Protecting Whistleblowers with Access to Classified Information, (October 10, 2012), http://www.fas.org/irp/offdocs/ppd/ppd-19.pdf.

[2] Memorandum on Delegation of Responsibilities Concerning FBI Employees Under the Civil Service Reform Act of 1978, 62 Fed. Reg. 23,123 (April 14, 1997), available at http://www.gpo.gov/fdsys/pkg/FR-1997-04-28/pdf/97-10984.pdf.

Congressional investigators see pattern of 'slow walking the truth' with Libya embassy attack, ATF gun scandal

Why It Matters:

President Obama promised unprecedented transparency in his administration, but from Libya to Fast and Furious there is growing evidence the administration hasn't lived up to the promise in its early account of controversies. The newest evidence suggests the administration failed to seize an opportunity months earlier to correct the record in the gun-running scandal known as Fast and Furious.

UPDATED 9:28 AM EDT, October 30, 2012 | BY John Solomon

The former head of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives told congressional investigators he discovered the Obama administration's original account to Congress about the Fast and Furious gun scandal was inaccurate as early as March 2011 and urged the Justice Department to correct the record, an action that did not formally occur until eight months later.

The full testimony from retired Acting ATF Director Kenneth Melson has not yet been officially released by Congress. But excerpts were obtained by the Washington Guardian as House and Senate investigators this week issued their second report into the gun-running scandal that has become an embarrassment for the administration and prompted a court fight over executive privilege.

At issue is the Obama administration's initial account when the Fast and Furious scandal broke in February 2011 that ATF agents never knowingly let semiautomatic weapons fall into the hands of smugglers for the Mexican drug cartels. Senior officials held that position in varying forms for months as the scandal grew, but then reversed course last December in the face of mounting evidence to the contrary.

Melson's testimony - during a private deposition with congressional investigators - suggests the administration knew as early as March 2011 that its account was wrong and could have corrected it months earlier than it did.

"I drafted an e-mail to our people, and said, you know, you better back off, you better back off this statement," Melson testified, recalling what he did in late March 2011 after reading files from the case that contradicted the administration's official explanation. Melson alerted the U.S. attorney in Phoenix of his concerns, sent an email to his ATF subordinates entitled "Hold the presses" and another to the deputy attorney general's office after making the discovery, according to evidence separately gathered by the Justice Department's inspector general.

But despite those emails, Justice with Melson's blessing sent a second letter to Congress a month later again falsely reasserting no gun had been allowed to walk in the Arizona invetsigation known as Fast and Furious.

Congressional investigators also have learned of a second warning a few months later in August in which senior Justice officials were alerted their assertions were wrong.

The former ATF chief's account likely will bolster Republican arguments that the administration has repeatedly slow walked the truth when faced with controversies such as the gun-running scandal, the BP oil spill in the Gulf or the recent terror attack on the U.S consulate in Benghazi, Libya, that killed Ambassador Chris Stevens and three others.

For the rest of the story visit: http://www.washingtonguardian.com/slow-walking-truth

Friday, October 26, 2012

Senator Chuck Grassley issued the following comment today regarding security questions related to the September 11 terrorist attacks on the U.S. Consulate in Libya.

"Allegations that military resources in the area were requested and denied is alarming.  If it's the fact that more could have been done to avert the loss of life by American personnel but was rejected, then those decision makers need to be held accountable.  It's past time for President Obama and his administration to provide the basis for the decisions made before, during and now after the fatal terrorist attack on the U.S. Consulate in Benghazi on September 11."
Friday, October 19, 2012

The White House has named the Rozga family of Indianola an Office of National Drug Control Policy Advocate for Action for 2013 for their work to prevent and educate the public about synthetic drugs.  Sen. Chuck Grassley worked closely with the Rozga family after their son and brother, David, died after ingesting a synthetic drug, K2, bought from the local mall.  Congress later banned the chemicals used to make several synthetic drugs.  Grassley made the following comment on the White House's position for Jan, Mike, and Daniel Rozga.

"It might be human nature to turn inward after a tragedy but the Rozga family did the opposite.  They channeled their grief into educating the public about a drug no one knew much about at the time.  The Rozgas played a large role in persuading Congress to enact a synthetic drugs ban.  They'll make the most of their advocacy role from the White House."

More information on the White House position is available here and here.

More information on the Rozga family and synthetic drug ban is available here.

Friday, October 19, 2012

 

Senator Chuck Grassley issued the comment below following a New York Times story today that a provision in the 2010 health care law is being distorted in fall campaign ads.

 

Grassley comment:

 

"Remember, it was Republicans who made this law apply to Congress, not the Democrats who wrote the law.   The Democrats were perfectly fine with applying Obamacare to the entire economy but leaving themselves out.  Despite passage of my amendment, Democrats still carved out exemptions for high-level staff, despite Republican efforts to undo the carve-outs, and Democrats refused to make Obamacare apply to the White House itself."

 

Background information:

 

The provision in question stemmed from an amendment Grassley authored and for which he won Finance Committee approval in September 2009.  The Grassley amendment said that members of Congress and their staff must get their health insurance coverage from the exchanges that would be established in the health care overhaul.  This congressional coverage initiative built on many years of work by Senator Grassley to have Congress live under the laws it passes for the rest of the country.  In 1995, legislation authored by Grassley to apply 12 civil rights, labor and employment laws to Congress for the first time.

 

The story in today's New York Times reports that TV commercials being run on behalf of Democratic candidates for Congress assert that members of Congress who voted to repeal the 2010 health care law have voted to give themselves taxpayer-funded health care for life."  Senator Grassley said his provision, even in the final form it took in the law that was enacted makes no changes to the employer contribution to federal employee health care coverage and no changes to federal retiree health care.

 

New York Times story:

 

Democrats Use Health Law to Assail Republicans

By ROBERT PEAR

Published: October 18, 2012

WASHINGTON ? A little-noticed provision of the new health care law is causing big headaches for some members of Congress in this year's elections. And it is likely to cause even bigger headaches for lawmakers next year.

 

The provision, written into the law at the behest of a Republican senator, says members of Congress must get their health benefits through new insurance exchanges being established in every state.

Republicans have voted repeatedly to repeal the whole law. Now, in a barrage of television ads, Democrats are roasting those Republicans, saying they voted to give themselves "taxpayer-funded health care for life."

The accuracy of the commercials, judged even by the loose standards that often apply to political advertising, is open to question.

Democrats say the commercials are accurate. Under the law, they say, members of Congress would be removed from the federal program that provides health insurance to most federal employees and retirees. Repealing the law, they say, would restore that coverage.

Republicans say that the attacks are unfounded, and that the Democrats are misrepresenting the effect of the law on coverage for retired members of Congress.

In any event, the criticism, if it sticks, could be politically damaging. Lawmakers of both parties have often said their goal is to provide all Americans with health insurance as good as what Congress has.

In a typical ad, the campaign of Ann McLane Kuster, the Democratic candidate for Congress in the Second District of New Hampshire, says that Representative Charles Bass, the incumbent Republican, "voted to cut Medicare for you while voting himself taxpayer-funded health care for life." In upstate New York, Dan Maffei, a Democrat, assails the Republican, Representative Ann Marie Buerkle, saying she tried to privatize Medicare while "voting herself a tax-subsidized health care plan that she will be eligible for even after she retires."

Similar television advertisements have been run in California by Democrats trying to unseat Representatives Brian P. Bilbray and Mary Bono Mack, both Republicans.

In Michigan, the Democratic Congressional Campaign Committee is running an advertisement that says Representative Dan Benishek, a Republican, "voted to give members of Congress taxpayer-funded health care for life."

In another commercial, the committee says that Representative Tom Latham, Republican of Iowa, "voted himself taxpayer-funded health care for life," but "wanted to gut Medicare, basically do away with it," for older Americans.

House Majority PAC, a leading Democratic "super PAC," has run advertisements saying that Representative Chip Cravaack, a freshman Republican from Minnesota, "voted to give members of Congress taxpayer-subsidized health care for life," even as he tried to make older Americans pay more for their health care.

In an interview, Mr. Cravaack said the attack was based on "a deceitful stretch of the imagination," and he asked: "How can you possibly think that repealing Obamacare would provide me with health care for life? I do not understand the correlation."

However, Andy Stone, a spokesman for House Majority PAC, defended the commercials.

"The ads show the hypocrisy of Republicans who want to protect their health insurance while eliminating protections for people with pre-existing conditions and for children who want to stay on their parents' insurance to age 26," Mr. Stone said.

Jesse F. Ferguson, a spokesman for the Democratic Congressional Campaign Committee, said, "It's no surprise Republicans don't like us pointing out the truth ? that their vote to repeal the Affordable Care Act would reinstate the perk of taxpayer-funded government health care for members of Congress."

Senator Charles E. Grassley, Republican of Iowa, proposed the original requirement for lawmakers to get coverage through insurance exchanges. He has long said that "Congress should live under the same laws it passes for the rest of the country."

The television ads are based on two premises: that members of Congress now have taxpayer-financed coverage for life, and that the 2010 health care law will eliminate it.

The facts are more complicated than the ads.

Members of Congress and retired members are eligible for insurance coverage under the same system as other federal employees. This system, the Federal Employees Health Benefits Program, covers eight million federal workers, retirees and dependents.

The 2010 health care law says that the only health plans available to members of Congress, as a benefit of their employment, are health plans created under the law or offered through insurance exchanges.

The nonpartisan Congressional Research Service, an arm of the Library of Congress, says this section of the law implies that members of Congress "will no longer be eligible to enroll" in the Federal Employees Health Benefits Program.

That raises vexing questions for lawmakers. Under the program for federal employees, the government pays a hefty share of the premiums: 72 percent, on average. Will this money still be available to help pay premiums when members of Congress get coverage through the exchanges, starting in 2014?

The government contribution averages more than $10,000 a year for family coverage and more than $4,500 for individual coverage.

In writing the legislation, members of Congress apparently assumed that the federal contribution to their premiums would continue, but the law is silent on the question.

Though the law generally requires members of Congress and certain Congressional aides to get their coverage through insurance exchanges, it says nothing about retiree health benefits.

How the new law affects retiree benefits is unclear, say lawyers at the Congressional Research Service and at the Committee on House Administration, which is responsible for bills affecting lawmakers' pay and benefits.

Federal employees can often keep their coverage in retirement if they have been continuously enrolled in the federal employees health program for five years immediately before retiring.

Without getting into the fine points of health policy, Democrats are unleashing more ads. One says that Representative Sean P. Duffy, Republican of Wisconsin, voted to "give Congress taxpayer-funded health care for life."

Justin Richards, the manager of the Duffy campaign, said: "Sean Duffy doesn't get health care for life, not even close. His health care is the same as any federal employee from the F.B.I. agent to the park ranger."

A version of this article appeared in print on October 19, 2012, on page A18 of The New York Times

 

Description of Grassley effort to apply health care law to Congress:

For Immediate Release

Wednesday, January 26, 2011

 

Grassley re-introduces bill to apply health care reforms

to White House and administration leaders, and equitably in Congress

 

WASHINGTON - Senator Chuck Grassley today renewed his effort to apply the health care reform law to the President, Vice President, cabinet members, top White House staff, and the congressional staff who worked for passage of the massive overhaul enacted in March 2010.

 

Previous legislative initiatives by Grassley to establish accountability in Congress and the administration were rebuffed, both in 2009 and 2010, by the Democratic Majority Leader in the Senate.  "As a result, the health care reforms driven by President Obama and Senator Reid do not apply to President Obama and top administration officials or to the powerful congressional leadership staff who helped to make the overhaul the law of the land," Grassley said.  "The message to grassroots America is that health care reform is good enough for you, but not for us."

 

Grassley said that now that a new Congress has started, Senate leaders have another chance to make things right and should act immediately to pass his Health Reform Accountability Act.  "Until the health care overhaul is repealed and replaced with reforms that have broad-based support, the majority leadership in the Senate and the administration ought to make sure they are required to live under the health care law they put on the books."

 

Grassley started his accountability effort in September 2009, when the Finance Committee, where he served as Ranking Member, was acting on its reform proposal.  Committee members approved a Grassley amendment to have members of Congress and all congressional staff obtain their health insurance through the same health insurance exchanges where health plans for the general public would be available.  After the bill left committee and during the closed-door reworking of the legislation in the Senate Majority Leader's office, Senate committee and leadership staffs were exempted from the requirement.

 

In December 2010, when the carve-out was discovered, Grassley and Senator Tom Coburn offered an amendment to restore the requirement for all congressional staff and also to statutorily require the President, the Vice President, top White House staff and cabinet members to get their health insurance through the newly created exchanges.  The amendment did not apply to federal employees in the civil service.  The Grassley-Coburn amendment was never brought up for a vote.  The legislative fix also was not included in the final manager's amendment, controlled by the Senate Majority Leader, on Christmas Eve, when the Senate passed the legislation that ultimately became law.  Grassley made another attempt to have the special carve-out removed during Senate consideration of the health-care reconciliation bill in March 2010.  Again, he was rebuffed.  Grassley filed the same free-standing legislation introduced today immediately following final passage, but it has never been brought up by the Senate Majority Leader, who controls the calendar and Senate business.

 

Grassley said the motivation for his initiative is simple:  public officials who make the laws or lead efforts to have laws changed should live under those laws.  "It's the same principle that motivated me to pursue legislation over 20 years ago to apply civil rights, labor and employment laws to Congress," Grassley said.

 

That previous Grassley crusade met success in 1995, when President Clinton signed into law Grassley's Congressional Accountability Act.  Before then, Congress had routinely exempted itself from major laws, including the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, the Employee Polygraph Protection Act of 1988, the Fair Labor Standards Act of 1938, the Family and Medical Leave Act of 1993, the Federal Service Labor-Management Relations Statute, the Occupational Safety and Health Act of 1970, the Rehabilitation Act of 1973, the Veteran's Employment and Reemployment Rights at Chapter 43 of Title 38 of the U.S. Code, and the Worker Adjustment and Retraining Notification Act of 1989.  All 12 of those laws now apply to Congress, thanks to Grassley's reform legislation.

 

Today, Grassley also is working to make sure Congress lives up to the same standards it imposes on others with legislation such as his Congressional Whistleblower Protection Act.

 

As far as the health care law, as it stands today, because of the amendment Grassley included in the Finance Committee bill, at least members of Congress and their personal office staffs will be required to obtain their health insurance coverage through the newly created health care exchanges, when the law takes full effect in 2014, instead of the Federal Employees Health Benefit Program.

 

In March 2010, the White House announced that the President planned to participate in the health insurance exchanges in 2014.  Grassley said at the time that the move effectively endorsed his legislation.  "I appreciate it, but the principle of living under the law shouldn't be voluntary for political leaders."

 

The companion bill to the legislation filed today by Grassley was introduced last week in the House of Representatives by Representative Michael Burgess of Texas.  It's H.R.360.

 

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Friday, October 19, 2012

Senator Chuck Grassley issued the following statement after portions of a Department of Homeland Security Inspector General review on inappropriate conduct by United States Secret Service personnel, and others, were reported by media sources.  Grassley pressed Secret Service Director Mark Sullivan for an independent review by the Inspector General in his first conversation with the Director soon after the alleged Colombia prostitution scandal and other misconduct was reported.

"It looks like the Inspector General's report confirms our fear that there is a broader history of inappropriate action by personnel within the Secret Service.  Even worse, the IG report casts doubt and suspicion on the statements that national security wasn't at risk.  The Secret Service will have a lot of work to do in the coming months and years to create a culture that respects the important job the agency is tasked with and to again earn the trust of the American people."
Thursday, October 18, 2012

Sen. Chuck Grassley of Iowa is tracking the effectiveness of the Administration's grants toward the electrification of vehicles.  One of grant recipients once considered the most promising, A123 Systems, filed for bankruptcy this week.  Grassley made the following comment on the Administration's statement that its $2 billion in grants for electric vehicles led to the employment of "thousands of American workers."

Sen. Grassley comment -

"The Administration says it's awarded $2 billion in grants to 29 companies involved in the electrification of vehicles, leading to the employment of 'thousands of American workers.'  This comes after the Administration, through the Department of Energy, told my staff it doesn't verify or update job creation statistics provided by grant and loan recipients.  I've asked the Administration for a detailed break-down of the job numbers that justify the statement that thousands of American workers are employed as a result of federal grants for electric vehicles.  The public deserves an accurate, current accounting of the numbers that justify the claim of jobs directly related to federal spending.  That's the only way to quantify whether the federal spending accomplished what the Administration said it would accomplish.  Claims of job creation without verification are meaningless, and right now, there's zero verification."

Source of Administration comments: http://energy.gov/articles/update-advanced-battery-manufacturing

WASHINGTON - Sen. Chuck Grassley of Iowa today urged key fellow senators to help ensure the appropriate spending of tax dollars after housing authority scandals across the country have revealed wasted funding and abuse of the public trust in a vacuum of oversight.

"For more than two years, I've urged Secretary Shaun Donovan and the Department of Housing and Urban Development to perform more oversight of the billions of federal dollars that go to local housing authorities," Grassley said.  "The agency has taken a few positive steps, but progress has been too slow.  The agency seems to get involved in oversight of local housing authorities only after the fact, when the abuse has occurred and local media have documented the problems.   For the public benefit, we need to reverse the timeframe.  HUD and local housing authorities need to prevent malfeasance on the front end, not chase it after the fact when it's too late.  I hope the senators responsible for HUD funding and programs will step in and help me reverse the lax oversight that harms the people who need safe, affordable housing and the taxpayers alike."

Grassley said a positive step he helped to extract from HUD, amid several high salary scandals, was the agency's implementation of a new requirement that the public housing authorities provide HUD with documentation of salaries and other compensation.  Unfortunately, the effect of the positive step was limited because HUD made only aggregate information public, and Grassley is pushing for full disclosure of housing authority salaries and perks.  Grassley also has worked with local media in areas including Philadelphia, Chelsea, Mass., and Harris County, Texas, to spotlight bad actors and questionable activities to help bring about tangible changes in how those housing authorities are run.

"Even with the positive steps, much more work is necessary," Grassley said.  "The country has thousands of local housing authorities spending billions of federal dollars.  Those who are tempted to abuse the system have too much leeway due to a lack of oversight.  This has to change, sooner rather than later.  The senators who control the purse strings and housing policy are in a key position to exact change."

Grassley appealed for help to Sen. Patty Murray, chairman, and Sen. Susan Collins, ranking member, of the Committee on Appropriations' Subcommittee on Transportation, Housing, and Urban Development, and Related Agencies, as well as Sen. Robert Menendez, chairman, and Sen. Jim DeMint, ranking member, Subcommittee on Housing, Transportation, and Community Development of the Committee on Banking, Housing and Urban Affairs.  Grassley included an article from the Boston Globe that reported on numerous problems plaguing public housing authorities in Massachusetts and said the same problems have been found at housing authorities "large and small across the country."  He also listed his concerns about HUD conference spending, housing authority take-home vehicle abuses, and the need for greater transparency of public housing authority executive director compensation packages.

In one example of housing authority-owned vehicle abuse, the executive director of the Albuquerque, New Mexico, housing authority was documented taking her housing authority vehicle to get her nails done on Friday afternoons.  She was fired after a local television station reported on her outings, according to media reports.

The text of Grassley's letters to the senators with key committee jurisdiction over federal housing are available here and here.

The text of Grassley's letter to HUD on take-home vehicle abuse is available here.

An Albuquerque television station's account of the nail salon scandal is available here.  The Washington Post's coverage is available here.

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