E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 112 CONGRESS, SECOND SESSION

Vol. 158 WASHINGTON, WEDNESDAY, MAY 9, 2012 No. 65 Senate The Senate met at 9:30 a.m. and was appoint the Honorable KIRSTEN E. GILLI- from happening. We do not want the called to order by the Honorable BRAND, a Senator from the State of New rates to double. We don’t want them to KIRSTEN E. GILLIBRAND, a Senator from York, to perform the duties of the Chair. go up at all. There are 30,000 people in the State of New York. DANIEL K. INOUYE, Nevada who are depending on our doing President pro tempore. something to freeze those rates. But PRAYER Mrs. GILLIBRAND thereupon as- what is worse, in my estimation—and I The Chaplain, Dr. Barry C. Black, of- sumed the chair as Acting President think that of the American people—is fered the following prayer: pro tempore. that Republicans seem proud of block- Let us pray. f ing this legislation. Not a single Re- O God, our refuge, help us to never publican voted to allow the debate to RECOGNITION OF THE MAJORITY doubt Your generous love. You gave us go forward. LEADER Heaven’s best gift and desire to freely This isn’t an issue of saying: OK, if I give us more than we can ask or imag- The ACTING PRESIDENT pro tem- vote for this, this will be the legisla- ine. Even when we sin, You still love pore. The majority leader is recog- tion. They would not even let us go for- us. Great is Your faithfulness. nized. ward to debate it. They have said they Give to our lawmakers gifts that like the bill, except they do not like only You possess. Give them this day f the way it is paid for. Fine. Let’s get the gifts of courage to admit mistakes, STOP THE STUDENT LOAN INTER- on the bill and offer amendments to grace to rise when they fall, and peace EST RATE HIKE ACT OF 2012—MO- pay for it. But no—every single Repub- that the world cannot give. Give them TION TO PROCEED lican voted no. Every single Republican this day the gifts of forgiveness for the Mr. REID. Madam President, I move said: We are not going to allow a de- past, courage for the present, and hope bate. for the future. Keep them calm in the that the Senate resume consideration The American people certainly quiet center of their lives so that they of the motion to proceed to S. 2343, and shouldn’t be surprised because this has may be serene in the swirling stresses I ask unanimous consent that the time been going on for 3 years, almost 4 of life. until 2 p.m. be equally divided and con- We pray in Your merciful Name. trolled between the two leaders or years. Everything is a fight. They are Amen. their designees, with the Republicans blocking legislation that would allow controlling the first 30 minutes and the us to stop the increase of the rate on f majority controlling the second 30 min- student loans. That is wrong. And the PLEDGE OF ALLEGIANCE utes. person who signed this legislation into The Honorable KIRSTEN E. GILLI- The ACTING PRESIDENT pro tem- law, making this interest rate such as BRAND led the Pledge of Allegiance, as pore. Without objection, it is so or- it is, was President Bush. So I hope Re- follows: dered. publicans will come to their senses and I pledge allegiance to the Flag of the The clerk will report the bill by title. work with us to accomplish this, but I United States of America, and to the Repub- The legislative clerk read as follows: am not holding my breath because, as lic for which it stands, one nation under God, Motion to proceed to S. 2343, a bill to I indicated, they seem proud they have indivisible, with liberty and justice for all. amend the Higher Education Act of 1965 to stopped another piece of legislation al- f extend the reduced interest rate for Federal together. Direct Stafford Loans, and for other pur- Now, what does this mean, that they APPOINTMENT OF ACTING poses. PRESIDENT PRO TEMPORE are hanging together to stop legisla- The ACTING PRESIDENT pro tem- tion, to stop progress? Well, as we work The PRESIDING OFFICER. The pore. The majority leader. to create jobs and make college afford- clerk will please read a communication Mr. REID. Madam President, the able, our colleagues—my Republican to the Senate from the President pro clerk just read the matter before the friends on the other side of the aisle— tempore (Mr. INOUYE). Senate, which is to prevent the inter- operate under a different set of prior- The assistant legislative clerk read est rate on loans students receive to go ities. the following letter: to school—the money they borrow— In the House, for example, there are U.S. SENATE, from doubling from 3.4 percent to 6.8 efforts now underway to undo a hard- PRESIDENT PRO TEMPORE, percent. That is the pending matter be- fought agreement of last August to cut Washington, DC, May 9, 2012. To the Senate: fore the Senate. more than $2 trillion from the deficit Under the provisions of rule I, paragraph 3, Yesterday the Republicans continued over the next decade. That agreement of the Standing Rules of the Senate, I hereby to filibuster our plan to prevent that came after threats by the tea party-

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

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VerDate Mar 15 2010 03:38 May 10, 2012 Jkt 019060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\CR\FM\A09MY6.000 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S2990 CONGRESSIONAL RECORD — SENATE May 9, 2012 driven House—and now 40 percent of lars of a successful society—that need Now, Bowles-Simpson was very dif- the people over here are tea party ad- not necessarily be true, is what Presi- ficult. There were 18 members, and vocates—to shut down the government. dent Eisenhower said. But the Repub- they had to get 14 of the 18 to approve And they wanted to do that in a couple lican plan would enshrine into law a it. That didn’t work. They couldn’t get of different ways: not allowing us to set of unbalanced priorities and ensure that many people to vote for it. continue funding for government pro- the kind of terrible math General Ei- In the meantime, President Obama grams, and then, for the first time senhower envisioned. was working as hard as he could with ever, there was a knockdown, drag-out Unlike defense contractors and bil- the lead spokesman of the Republicans, fight over weeks and weeks as to lionaires, ordinary Americans don’t the Speaker of the House, JOHN BOEH- whether we should increase the debt have high-priced lobbyists to protect NER. JOHN BOEHNER said: I didn’t get ceiling in this country. During Presi- them. That is our job. That is our job. elected to do small things, I want to do dent Reagan’s time in running the There is not a person on this side of the big things. And President Obama, to country, this had been done dozens of aisle who doesn’t believe it is good that his detriment with his base, said: I will times. But, no, these folks will do we have wealthy people in America. We do something to change Social Secu- nothing without a big fight. As a result have Senators here, Democrats, who rity and Medicare. And all these things of that, we came to an agreement that are wealthy—certainly not all Demo- he agreed to do publicly. But the Re- crats, but there are some. We don’t was bipartisan. Now, some say the publicans—JOHN BOEHNER—could never look down on people who are rich, but agreement was forced upon the Repub- go against Grover Norquist. The Re- we do have to look out for people who licans, but they voted for it, an agree- publicans shake in their boots. They are in need of our help. Most of these ment to reduce the deficit, and the def- will not do anything, even though the rich people have all kinds of lobbyists icit we couldn’t reduce before August American people by a more than 70 per- here to help them, but the people in cent majority say people making more of last year. We said: OK, fine, if we Henderson, Ely, and Winnemucca, NV, than $1 million a year should con- don’t do something about it this year, don’t have people here to help them. tribute to what the problems are in then there will be automatic cuts They have us. So Republicans are going this country. So that fell apart. called sequestration. after those who can’t fight back—hard- Then we had the Gang of 6 Senators— Now the House is doing everything working Americans and struggling three Republicans, three Democrats— they can to walk away from the agree- families. ment we made and the bipartisan vote Let’s review a little bit of history who had been on the Bowles-Simpson we took. They are doing everything again. The sequester isn’t the first bi- Commission, who said we should do they can. They have a Republican partisan agreement to reduce the def- something about this. They were in the budget, the so-called Ryan budget. And icit. When I became the Democratic press, they had press conferences, and I say ‘‘so-called’’ because they are try- leader, I thought—having served on the this was going down the road and doing ing to make a reconciliation bill, but Committee on Foreign Affairs in the all kinds of great things. While that they can’t do it because they are not House of Representatives and being was going on, there was a decision following the law to do that. So they very interested in America’s involve- made, and a law was passed to create a not only have reneged on this bi- ment in foreign affairs, I took a trip to supercommittee, to which I appointed cameral, bipartisan agreement to re- Central and South America. That was Senator PATTY MURRAY of Washington duce spending, but they have fun- so necessary. And I took Democratic to run. No one in the Senate, Democrat damentally skewed priorities because and Republican Senators with me. I or Republican, has more respect than they hand out even more tax breaks to was very careful in picking two Sen- PATTY MURRAY. She worked so hard multimillionaires and shield corporate ators whom I wanted on that trip. One with the other 11 Members of Congress defense contractors, all at the expense was Judd Gregg, a very fine Senator to come up with something. of hard-working, middle-class families, from New Hampshire, who has retired, A few days before they were to arrive the elderly, and those who can least af- I am sorry to say. I recommended that at a decision—and the Gang of 6 mem- ford it. That is what they are doing in Senator Gregg be a part of President bers are out here doing all this stuff all the House. They are going to have a so- Obama’s initial Cabinet. He agreed to the time—I get a letter signed by vir- called rule today and vote on it shortly take the job, but something came up, tually every Republican Senator say- thereafter. They would slash invest- and he didn’t do it. But he is a wonder- ing: We are not going to raise revenue ments to strengthen our economy and ful man. I also wanted KENT CONRAD on for anything. The supercommittee just shred our social safety nets. that trip. And I don’t know which one didn’t work there. The Gang of 6 is I want to quote from President knows more about the inner workings gone. So we passed this last August to Dwight Eisenhower. And let me remind of the finances of this country, Gregg fund government for 2 years and to say everybody that he was a Republican. or CONRAD, but they are both good, and if we don’t arrive at another $1.2 tril- He was a tremendous President, and I wanted them to go together, and they lion in deficit reduction during this each day that goes by, people are look- did. year, it automatically kicks in at the ing at him more favorably. Here is Senators Gregg and CONRAD spent end of this year or the beginning of what he said: hours and hours seated in that airplane next year. Every gun that is made, every warship working on doing something about the So that is where we are, and the Re- launched, every rocket fired, signifies in the deficit. They both believed it needed publicans in the House are trying to final sense a theft from those who hunger some really difficult, hard work, and change that. So that is what this little and are not fed, those who are cold and not they decided to do what the base-clos- history lesson has been all about. clothed. ing commission did; that is, prepare I don’t like to sequester. I wish we This isn’t some leftwing, socialistic- legislation and give it to a commission didn’t have to do it. It was a hard pill leaning liberal. That was Dwight Ei- that would send it back to us. There to swallow, but it was the right thing senhower—a five-star general who led would be no amendments, no filibuster, to do. If we are ever going to reduce the invasion of Normandy and did just an up-or-down vote. That was their the staggering deficit, we are going to many other things, such as starting the legislation. They wrote that and have to make some hard decisions. So National Highway System. Let me re- brought it to the floor. that is what this is all about. But that peat what he said: As the leader, I decided I would move is the point: It is hard to do; therefore, Every gun that is made, every warship to proceed to it, and so I did move to we have to do it, to sequester—which, launched, every rocket fired, signifies in the proceed to it, thinking it should be a in effect, would take almost $500 billion final sense a theft from those who hunger slam dunk. But seven Republicans, who from domestic programs and almost and are not fed, those who are cold and not had cosponsored the legislation, voted $500 billion from defense programs. clothed. against it. I couldn’t bring it to the They were designed to be tough enough I didn’t make that up. That is what floor. That was where Bowles-Simpson to force two sides to reach a balanced he said. In a balanced world—one where came from, as a result of the Repub- deal. It hasn’t happened yet. a strong national defense and a strong licans walking away from their own ef- As I said earlier with General Eisen- social safety net are both valuable pil- forts to reduce the deficit. hower’s statement, I didn’t make that

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.001 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S2991 up. That is what he said. My complaint addition to people with disabilities—by SKEPTICAL AMERICANS about the Republicans being so unrea- hundreds of thousands, just eliminate Mr. MCCONNELL. Madam President, sonable about everything is something them. It would also put seniors in nurs- with President Obama officially on the where I am not a lone wolf crying in ing homes at risk. Some of them would campaign trail now, it is hard not to be the wilderness. We have two long-time have to move out of the nursing home, reminded of the kind of candidate he nonpartisan watchers of Congress, one I guess. was the last time around and to marvel from the American Enterprise Insti- It would punish Americans who re- at the difference. tute, which is a conservative think ceive tax credits to purchase health in- At some point the postpartisan heal- tank, another from Brookings Institute surance when their financial cir- er who pledged to unite Red and Blue that wrote an article saying: It is the cumstances change, causing 350,000 America became the ‘‘divider in chief,’’ Republicans. Can’t you see what they Americans to have no coverage. This a deeply divisive President who never are doing? Here is one thing they said: would add to the tens of millions who seems to miss an opportunity to pit We have been studying Washington politics already exist that way. one group against another and who is in Congress for more than 40 years, and never It would weaken Wall Street reforms, now determined to win reelection not have we seen them this dysfunctional. In our protecting big banks at the expense of by appealing to America’s best in- past writings, we have criticized both parties consumers. Their legislation would stincts but all too often to its worst. when we believed it was warranted. Today, once again target middle-class work- however, we have no choice but to acknowl- Even the New York Times editorial edge that the core of the problem lies with ers, food inspectors, air traffic control- page, this very morning, says the coun- the Republican party. lers, Border Patrol agents, drug en- try is more divided than it was 4 years They further said: forcement, and FBI agents. They would ago under this President. Some have have to be laid off. The GOP has become an insurgent outlier argued that the transformation we in American politics. It is ideologically ex- It would cut funding for preventive have witnessed proves that the Presi- treme; of scornful compromise; unmoved by health care programs that fight chron- dent was a liberal ideologue all along, conventional understanding of facts, evi- ic illnesses—such as heart disease, can- that the task of governing revealed his dence and science; and dismissive of the le- cer, strokes, and diabetes—that cause true instincts. That may be true. But gitimacy of its political opposition. 70 percent of the deaths in America. there is an even simpler explanation What brave men to do that, to write Preventive care would be reined in. than that, and one that in some ways is these comments—which are true. I It would slash block grant funding in even more disappointing. It is the idea have been saying that I don’t want to the United States to help 23 million that the President said what he needed fight about everything. Republicans in- children, seniors, and disabled Ameri- to say to get elected then and that he sist on balancing the budget on the cans live independently and out of pov- will say whatever he needs to say to backs of the middle class, seniors, stu- erty. get reelected now. dents, single mothers, and those who No segment of the population is im- It encapsulates why the American could least afford it. That is what they mune from this painful, absurd Repub- people are so very skeptical of politi- are doing over there today. It is their lican plan—except maybe millionaires, cians. The President’s policies may refusal to compromise that leaves us billionaires, and wealthy corporations. have disappointed. A health care bill facing the threat of sequester, and it is The Republican proposal cuts Meals on that was supposed to lower costs is difficult but it is balanced. Wheels and reduces food assistance for causing them to rise. A stimulus bill Going back to the August budget almost 2 million needy people. One of that was supposed to create jobs was agreement now in order to protect the Republican candidates running for better at generating punch lines. But wealthy special interests is no solu- President said President Obama is the one of the greatest disappointments of tion. Neither is refighting the battles Food Stamp President. this Presidency is the difference be- of last year. Democrats agree we must There are more poor people. Our tween the kind of leader this President reduce our deficits and make hard economy has been in bad shape. People said he was and the kind he has turned choices, but we believe in a balanced are struggling. The millionaires are out to be. approach that shares the pain as well doing fine. And in addition to what I How did that happen? Well, I think as the responsibility. have already mentioned, this thing the President just put too much faith Is the sequester the best way to that they are taking up in the House in government. Let’s face it; there isn’t achieve that balance? No. But Repub- today cuts off almost 300,000 children a problem we face that this President licans refuse to consider a more reason- from free school lunches at a time didn’t think the government could able approach—one, for example, that when one in five children lives in pov- solve. Despite all the evidence to the asks every American to pay his fair erty. contrary, he still can’t seem to shake share while making difficult choices to The U.S. Conference of Catholic the idea that more government is the reduce spending. Democrats will not Bishops said the Republican plan fails answer for what ails us. agree to a one-sided solution that lets ‘‘a basic moral test.’’ This budget sets the superwealthy off the hook while When the stimulus failed, it wasn’t very clear priorities. The problem is the government’s fault; it was the Re- forcing the middle class and those in what they are taking up in the House greatest need to bear all the hardship. publicans. When the health care bill sets up the wrong priorities. caused health care costs to rise, the Democrats believe we can protect President Franklin Roosevelt said: Americans’ access to health care, cre- same thing. When trillions are spent Human kindness has never weakened the ate jobs while investing in the future, and jobs don’t come, it is ATM ma- stamina or softened the fiber of a free peo- chines, it is the weather, it is bankers, and protect the poor and elderly. But ple. A nation does not have to be cruel to be we can’t do it alone. It will take work tough. it is the rich, it is Fox News—it is any- thing other than the government. and compromise, and so far Repub- So Republicans would do well to re- This is why the sickening waste of licans have been unwilling to make a member our Nation is judged not only taxpayer dollars we have seen so many serious effort to achieve that result. by the strength of its military, but also times over the last 3 years—whether it Republicans have rejected our bal- by the strength of its values, so says was at a solar company such as anced approach. Their one-sided solu- General Eisenhower and President Roo- Solyndra or at a lavish party that Fed- tion to across-the-board cuts would sevelt. take away from the many to give to eral bureaucrats threw for themselves RESERVATION OF LEADER TIME the few. in Vegas—is viewed not as a symptom Here is what the plan would do—not The ACTING PRESIDENT pro tem- of a larger problem in Washington but all of it, but here is what their plan pore. Under the previous order, the as a problem to be managed, something would do. Remember, they are taking leadership time is reserved. to acknowledge and then move beyond it up over there in the House today. RECOGNITION OF THE MINORITY LEADER because they just don’t seem to see it. It would cut Medicaid benefits, in- The ACTING PRESIDENT pro tem- The President seems to view govern- creasing the number of uninsured chil- pore. The Republican leader is recog- ment the way some parents view their dren, parents, seniors—and that is in nized. children: It can do no wrong.

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.003 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S2992 CONGRESSIONAL RECORD — SENATE May 9, 2012 So if there is a problem to solve, a Orchestrating political show votes on The ACTING PRESIDENT pro tem- challenge to tackle, the solution is al- student loans and giving Congress a pore. The Senator from Kansas. ways the same: more government, post-it note checklist of legislative Mr. MORAN. I ask consent to address more government. And the results are items to pass before the election is not the Senate as in morning hour. always the same: a disappointment to what the American people expected. The ACTING PRESIDENT pro tem- be blamed on somebody—anybody— They expected us to work together pore. Without objection, it is so or- else. and they still do. dered. I think the President summed it up The President knows as well as I do STARTUP ACT pretty well during a speech he gave in that the solution to our economic prob- Mr. MORAN. Madam President, once New York just yesterday. This is what lems lies not in a Post-It-Note congres- again, it is that time of year when he said: sional agenda dictated from a lectern many proud parents will watch their The only way we can accelerate job cre- in New York, but through a sound lim- children walk across the graduation ation that takes place on a scale that is ited-government pro-growth plan, stage to receive their diplomas. Two needed is bold action from Congress. which includes comprehensive tax re- years ago, I watched my oldest daugh- Really? The only way to accelerate form, a true all-of-the-above energy ter saunter across her college gradua- job creation is through Congress? Not policy and the elimination of burden- tion stage and it was one of those mo- the private sector? Hasn’t the experi- some regulations that are hurting busi- ments for me in which I realized our ence of the last 31⁄2 years taught this ness and hindering job creation. country faces tremendous, enormous President anything at all about the Republicans have been calling for challenges, and if we fail to act our limitations of government action? these policies for years and the Presi- children’s future will be at significant Madam President, 31⁄2 years and $5 dent at one time or another has risk. trillion later, there are nearly a half claimed to support them. These are I believe all Members of Congress, in million fewer jobs in the country than proposals where Republicans and fact every American, has the responsi- the day the President took office. That Democrats can find common ground. In bility to be a good steward of what has is not what most people would describe other words, a plan designed not to been passed on to us. At that gradua- as a good return on investment. Yet control free enterprise from Wash- tion event, I renewed my commitment that is all we get—the same govern- ington but to liberate it. We just need to do my part to turn our country ment-driven solutions he has been the President to show some courage around. 1 My fear is we are not doing enough, pushing for 3 ⁄2 years. and leadership. Nearly 13 million Americans who are We will get this economy going not that we as Americans and especially we actively looking for jobs can’t find one. by handing out more special favors and as Members of this Congress are not Millions more have given up looking credits to favored industries and doing enough to offer our children a for a job altogether as the worker par- bright future. In the last 2 weeks, I groups, but by simplifying the code, ticipation rate is the lowest it has been have read headlines that caught my at- clearing out the loopholes, and low- in 30 years. tention. They would catch every Amer- ering rates for everybody. More than half of all college grad- ican’s attention. In less than 8 months, Americans will uates—the best prepared to enter the First, the amount of student loan be hit with the biggest tax increase in workforce—can’t find a good job. More debt has surpassed $1 trillion for the than half of college graduates can’t history—unless we act. first time in American history. Ameri- The President knows as well as I do find a job. And this President is pro- cans now have more combined student how devastating this would be for the posing the same old ideas that have loan debt than combined credit card failed before. Some government action American people—for everyone. debt. People who are already struggling failed? Then just do it again on a larger Second, the AP recently reported scale. That is the approach this Presi- will have to do with even less. Busi- that one out of every two college grad- dent has taken. It is his approach still. nesses that are already struggling just uates this year will be unemployed or It is the clearest sign he is literally out to keep afloat will see Washington get- underemployed. Unfortunately, it is of ideas. ting an even bigger take than it al- not just college graduates who are hav- But he is unwilling to try something ready is. ing trouble finding a job and paying different. He is unwilling to confront This looming tax hike will be abso- their bills. The Department of Labor the fact that a government that might lutely devastating. Yet here we are less reported just last week that more than have worked well a half century ago is than 8 months away from it, and the 12 million Americans are still looking outdated and in desperate need of re- President is busy orchestrating failure for work and our economy only added form. So he is resorting to the same old in the Senate and waving around some 115,000 jobs in April, the lowest number political gimmicks and games that he 5-point plan cooked up by some high- of jobs added in 5 months. This makes criticizes others for using. paid political consultant in Chicago. 39 straight months of unemployment Earlier this year the President Now, I am not in the business of giv- rate over 8 percent. mocked those who, every time gas ing the President campaign advice. But Our first priority in Congress must prices go up, dust off their three-point I am in the business of trying to get be to strengthen our economy so more plans to lower them, especially in an the best possible outcome for the jobs can be created, more Americans election year. That was the President. American people. And here is an can get back to work, and more grad- Yet yesterday he was proposing a five- issue—tax reform—where I know the uates can pursue their dreams. Data point plan of his own to revive the two parties have a shot at working to- tells us that for close to three decades, economy, a to-do list in effect for Con- gether to help this economy, and re- companies less than 5 years old created gress. store the American Dream for all those almost all the new net jobs in America, The cynicism is literally breath- who’ve started to doubt whether it will averaging 3 million jobs each year. taking. Here is a President who, in the even be there in a few years. While startups provide the gasoline to morning, worked hand-in-hand with So I would respectfully ask the Presi- fuel America’s economic engine, new Senate Democrats to ensure that legis- dent to ignore his campaign consult- businesses are hiring fewer employees lation to freeze interest rates on stu- ants for once and do what’s right for than in the past and make up a smaller dent loans wouldn’t pass, and in the the nation as a whole. Republicans in share of all companies than in previous afternoon gave a recycled speech in Congress are ready to work with you, years. which he pleaded for an end to the very Mr. President, on the kind of com- Troubling data out last week from gridlock he was orchestrating. There is prehensive reforms that you yourself the Census Bureau shows that the perhaps no better illustration of how have called for in the past. startup rate fell to the lowest point on far this President has come from the Working together might not help record for new firm births in 2010. heady days of his last campaign. your campaign, but it would help the While startup companies are so impor- Look: Americans voted this Presi- country. So my message to you is this: tant to job creation, their numbers are dent into office on a promise of bipar- We are ready when you are. now falling too. Given the dispropor- tisan action. I yield the floor. tionate impact new businesses have on

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.004 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S2993 the economy, it makes sense to craft country; many of those people in those longer a good one and should not be ac- targeted policies that help entre- businesses will become entrepreneurs cepted. We cannot continue to operate preneurs start businesses and that themselves and create their own busi- under the sentence that always says we make it easier for these young busi- nesses, hiring even more people down can’t do anything in an election year. nesses to grow. the road. So we lose this talent, this Our country desperately needs us to A former NASA engineer now in the skill on two occasions—first, the direct act now, not later. In fact, in the short technology field gave me a useful anal- jobs today and ultimately the jobs time I have been a Member of the Sen- ogy. He described the process of design- these entrepreneurs will create in the ate—about 14, 15 months—six other ing a rocket or an airplane, in which future. countries have changed their laws to there are two forces at play that deter- The future of our economic competi- encourage these types of individuals to mine whether the rocket will launch or tiveness depends upon America win- work in their countries, to create jobs, plane will fly: thrust and drag. So ning the global battle for talent. For- to support entrepreneurship, innova- much of what we want to do around eign-born Americans have a strong tion, and job creation in those coun- here tends to focus on the thrust, record of creating businesses and em- tries. In just the little over 1 year I spending money and creating pro- ploying Americans. Data shows us that have been a Member of the Senate, six grams, when what we ought to be doing 53 percent of immigrant founders of other countries have advanced further is focusing on reducing the drag. U.S.-based technology and engineering than we have while we have waited be- Rather than spend money on govern- companies completed their highest de- cause we cannot do anything because it ment programs, Congress must and gree at an American university, and is an election year. should enact policies that create an en- rather than send these talented, highly America cannot turn a blind eye to vironment in which many entre- educated individuals who have been those developments or to use the up- preneurs and their young companies educated in the United States back coming elections as an excuse to do have a better shot at success, and in home once they graduate, we should do nothing, yet again, on an issue that is the process of pursuing success they much more to allow them to remain in so critical to our future. Congress put people to work—reduce the drag so the United States, where their skills, should work to make it easier for com- the private sector can create jobs. their talents, and their intellect, as panies to grow because in a free mar- To create this environment where well as their new ideas, can fuel U.S. ket, when people have a good idea and these startup companies can be suc- economic growth. work hard, they not only enhance their cessful, I have introduced the Startup We are not talking about illegal im- own with success but the lives of so Act with Senator WARNER. The Startup migration; we are talking about legal many others through the products and Act reforms the Federal regulatory immigration. It makes no sense to edu- jobs they create. process to ensure that the cost of com- cate these talented, foreign-born stu- If we do not take the steps now to pliance does not outweigh the benefits dents in America and then send them win the global battle for talent, our of regulations. The Startup Act alters to their home countries to compete country’s future economic growth will the Tax Code to create incentives that against Americans for jobs. be limited. That means college grads will facilitate the financing and growth The Startup Act will help America and young people will have fewer op- of new businesses. The Startup Act ac- win this global battle for talent. The portunities, and higher rates of unem- celerates the commercialization of uni- Startup Act creates entrepreneur visas ployment may become the norm in- versity research so more good ideas for foreign entrepreneurs who register stead of the exception. Allowing tal- move out of the laboratory and into a business and employ Americans in ented, foreign-born U.S. students and the marketplace, where they can cre- the United States. By encouraging entrepreneurs to remain in the United ate jobs for Americans. more entrepreneurs to stay in America, States will create jobs for more Ameri- Perhaps most important, the Startup they will not only start more busi- cans. Act helps America win the global bat- nesses but they will employ more I will continue to work with my col- tle for talent. Americans and strengthen our econ- leagues in the Senate to implement On a recent trip to Silicon Valley, I omy. The Startup Act also creates a policies such as those contained in the met with startups, entrepreneurs, and new STEM visa for foreign students Startup Act so more entrepreneurs can some of the leading technology compa- who graduate from an accredited U.S. turn their ideas into reality, that they nies in the world—and they were just university with a master’s or Ph.D. in will have the chance for success. We startup companies a few years ago. science, technology, engineering or owe the next generation of Americans While I heard many encouraging sto- mathematics. Our own Department of the opportunity to pursue their ries of success, their No. 1 concern was Commerce projects that STEM jobs dreams—that those who this month attracting and retaining highly skilled will grow by 17 percent in the years walk across the graduation stages in employees. One business I met said ahead. We have to retain more highly high schools and colleges and univer- they had plans to hire dozens—I think skilled and highly talented and edu- sities, technical colleges and commu- the number was 68—foreign-born but cated individuals, the ones we educate nity colleges across our country, will U.S.-educated individuals and to hire in America, for us to remain competi- have the opportunity to pursue what them here in the United States, but tive in a global economy. We are going we all know as the American dream. they were unable to get the visas nec- to make sure our own U.S.-born and I yield the floor. essary to have these workers work in educated citizens have those job oppor- The ACTING PRESIDENT pro tem- the United States. Rather than lose tunities as well. We do not want to risk pore. The Senator from Louisiana. that talent, this company hired the the loss of the next Mark Zuckerberg Mr. VITTER. Madam President, I ask employees but placed them at various to Brazil or India. Doing so will fuel unanimous consent to speak as in international offices in countries with America’s economic growth and result morning business. immigration policies that encouraged in the creation of jobs here in America The ACTING PRESIDENT pro tem- the retention and attraction of highly by retaining these folks. pore. Without objection, it is so or- skilled foreign-born workers. Despite the overwhelming evidence, dered. Another company told me that with Congress should address this issue. NATIONAL FLOOD INSURANCE PROGRAM the talent increasing overseas, it will Congress’s conventional wisdom says Mr. VITTER. Madam President, I soon be easier for them to open offices not much will get done. My guess is 80 come to the floor again to urge all of and plants in other countries rather percent of my colleagues in Congress us to join together on a bipartisan than have the work done in the United would agree with the proposals con- basis and to reauthorize the national States. tained in this legislation. Particularly, flood insurance program, to do it now, The last thing we want is for Amer- 80 percent I think would agree with the to do it quickly because time is run- ican businesses to have a better busi- aspect of the legislation dealing with ning out. On May 31 the entire Na- ness climate in places outside the STEM visas. But we are told that be- tional Flood Insurance Program will United States. It is not just the loss of cause we cannot do everything, we can- expire. When the clock strikes mid- those dozens of jobs to some other not do anything. That excuse is no night that day, it will be gone unless

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.008 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S2994 CONGRESSIONAL RECORD — SENATE May 9, 2012 we act, and act we must. This is an im- a stop, as federally backed mortgage loans vironmental organizations, insurance indus- portant program for the country. cannot legally be secured without this crit- try interests, housing groups and others, we In my neck of the woods, in south ical protection. Failing to reauthorize the thank you for your efforts to reauthorize and Louisiana in particular, almost every NFIP could jeopardize nearly 40,000 mortgage reform the National Flood Insurance Pro- closings per month, according to the Na- gram (NFIP). The hearing you are holding real estate closing is dependent on this tional Association of REALTORS. today is a positive step to getting the full program because those properties need In 2011, Hurricanes Irene and Lee caused Senate to consider and pass the Banking flood insurance for there to be a clos- significant flooding from North Carolina to Committee-passed bill to reform NFIP, ing, which is very typical in many Maine. Those storms followed more than one which as you know is in need of serious re- other parts of the country. So here we hundred natural catastrophe events and sig- form. The program is currently almost $18 are trying to get out of a real estate- nificant spring 2011 flooding in several states billion in debt to federal taxpayers and that across the country. We are about to enter amount is likely to increase if reforms to the led recession, trying to bolster the hurricane season again, and America cannot economy, and we are on the verge of program are not implemented. Without sig- afford a lapse of the program. Failure to re- nificant reform, the NFIP will not be sus- letting the entire National Flood In- authorize the NFIP would further stress al- tainable and American taxpayers will con- surance Program expire yet again. ready struggling real estate markets, poten- tinue to be asked to bailout the program What is so frustrating about this is tially cost the government billions of dollars time and time again. there are not big disagreements about in uncompensated relief efforts, and put mil- The Senate Banking Committee has al- lions of consumers at risk. ready unanimously reported out a bill that how to get this done. This is not an In July 2011, the House of Representatives makes a number of needed reforms to put the overly partisan issue; we are not bit- passed a bi-partisan measure, H.R. 1309, by a flood insurance program on sound financial terly divided. This is merely an issue of vote of 406-22. On September 9, 2011, the Sen- footing and the House passed NFIP reform ate Banking Committee unanimously ap- getting floor time in the Senate. with over 400 votes. The bill will phase out The House acted last year in a bipar- proved its version of the 5-year bill. Both proposals include a long-term reauthoriza- risky, unwarranted subsidies that have un- tisan way, and the Senate committee dermined the financial stability of the pro- on which I serve has acted. I have tion and important reforms that will opti- mize the current program, make needed im- gram; will allow NFIP to purchase reinsur- worked very closely with my sub- provements to the floodplain mapping and ance to help NFIP pay future claims while committee chair JON TESTER, and we appeals processes, and other key reforms protecting taxpayers from these otherwise have acted in a bipartisan way. We that will encourage program participation inevitable costs; will require FEMA to en- have put together a good 5-year reau- and put the NFIP back on the path to sound sure maps are updated and accurate so that thorization bill, but we need to move financial footing. people understand and can better prepare for their risks; and will streamline and strength- this on and off the Senate floor to get We urge the full Senate to act now to reau- thorize this program and avoid the costly en mitigation programs to help decrease this done before the end of the month. consequences that would result in a lapse flood risks and strengthen flood-exposed Again, I urge the distinguished ma- from failure to act. communities, homes, and businesses. jority leader, Senator REID, to give Sincerely, The Banking Committee has taken a need- this important matter floor time. We American Bankers Association; American ed step to reforming the nation’s flood insur- all come here and talk about needing Bankers Insurance Association; American ance program and Smarter Safer joins a to improve the economy. We all come Insurance Association; American Land Title range of stakeholder groups in applauding this legislation. We urge the full Senate to to the floor and talk about jobs. Well, Association; American Resort Development Association; Chamber Southwest LA; Con- quickly pass this needed reform to NFIP so it is absolutely necessary in all of sumer Bankers Association; Council of Insur- that the House and Senate can begin to re- those categories, with all of those ance Agents and Brokers; Credit Union Na- solve the differences and quickly get a bill to issues in mind, to extend the National tional Association; The Financial Services the President’s desk. Flood Insurance Program. And let’s Roundtable; Houma-Terrebonne Chamber of We look forward to working with you on not just put a bandaid on it again and Commerce; Independent Community Bankers this issue and thank you for all of your ef- let it limp along with a very short- of America; International Council of Shop- forts to pass this critical legislation. Sincerely, term extension. Let’s do the full 5-year ping Centers; Independent Insurance Agents and Brokers of America; Mortgage Bankers SMARTERSAFER. reauthorization, which we can do, Association; NAIOP, Commercial Real Es- Environmental Organizations: American which is well in sight. tate Development Association; National As- Rivers, Ceres, Clean Air-Cool Planet, Defend- Groups around the country, particu- sociation of Federal Credit Unions; National ers of Wildlife, Environmental Defense Fund, larly those working in the real estate Association of Home Builders; National As- National Wildlife Federation, Republicans industry and in this part of the econ- sociation of Mutual Insurance Companies; for Environmental Protection, Sierra Club. omy, strongly support this effort. National Association of REALTORS®; Na- Consumer and Taxpayer Advocates: Amer- ican Conservative Union, American Con- Madam President, I ask unanimous tional Apartment Association; National Multi-Housing Council; National Ready sumer Institute, Competitive Enterprise In- consent to have printed in the RECORD Mixed Concrete Association; Property Cas- stitute, Taxpayers for Common Sense. several items, including a letter to ualty Insurers Association of America; Rein- Insurer Interests: Allianz of America, As- Senator REID and Senator MCCONNELL surance Association of America; Risk and In- sociation of Bermuda Insurers and Rein- signed by dozens of associations all surance Management Society, Inc. (RIMS). surers, Chubb, Liberty Mutual Group, Na- along the political spectrum, urging Mr. VITTER. Madam President, I ask tional Association of Mutual Insurance Com- this action. panies, Reinsurance Association of America, unanimous consent to have printed in Swiss Re, USAA. There being no objection, the mate- the RECORD another letter along the Housing: National Low Income Housing rial was ordered to be printed in the same vein addressed to Senator Coalition, National Leased Housing Associa- RECORD, as follows: TESTER, the subcommittee chair, and tion. MAY 7, 2012. myself, the ranking member on the Mr. VITTER. Madam President, I ask Hon. HARRY REID, subcommittee, again strongly sup- unanimous consent to also have print- U.S. Senate, porting this effort. Let’s do it. Let’s do ed in the RECORD an op-ed in Roll Call Washington, DC. it now. This is the SmarterSafer coali- written by two representatives of this Hon. MITCH MCCONNELL, tion, and this letter is dated May 9. U.S. Senate, broad coalition again explaining the Washington, DC. There being no objection, the mate- absolute importance and the critical DEAR MAJORITY LEADER REID AND MINOR- rial was ordered to be printed in the nature of doing this full, longer term ITY LEADER MCCONNELL: On behalf of the un- RECORD, as follows: reauthorization. dersigned associations, we respectfully urge AMERICANS FOR SMART NATURAL There being no objection, the mate- the Senate to move quickly to reauthorize CATASTROPHE POLICY, rial was ordered to be printed in the the National Flood Insurance Program May 9, 2012. RECORD, as follows: (NFIP) and avoid a costly lapse in the pro- Hon. JON TESTER, [From Roll Call, May 8, 2012] gram on May 31, 2012. Chair, Economic Policy Subcommittee, Senate As you know, more than 5.6 million policy- Banking Committee, Washington DC. SAMPSON & VEISSI: END FLOOD INSURANCE PROGRAM UNCERTAINTY holders in 21,000 communities nationwide de- Hon. DAVID VITTER, pend on the NFIP as their main source of Ranking Member, Economic Policy Sub- (By David Sampson and Moe Veissi) protection against property losses that re- committee, Senate Banking Committee, When Gerald Ford took the Presidential sult from flooding. Without flood insurance, Washington, DC. Oath of Office after Richard Nixon’s resigna- many residential and commercial real estate DEAR SENATORS TESTER AND VITTER: As a tion, he reminded Congress and the Amer- transactions across the country will come to diverse coalition of taxpayer advocates, en- ican people that ‘‘even though this is late in

VerDate Mar 15 2010 03:35 May 10, 2012 Jkt 019060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.010 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S2995 an election year, there is no way we can go the Senate floor to incorporate the repeat that: $1.3 billion in 2012. It is ex- forward except together and no way anybody Senate bill with perfecting amend- pected to reach as high as $3.5 billion can win except by serving the people’s ur- ments that have been worked out to- by the year 2020. Those are revenues gent needs.’’ Congress would do well to heed his words ward the floor to incorporate that coming out of the airlines in this coun- as we approach a watershed election this No- amendment on the next bill on the try that would be used to pay for this vember. Senate floor. My understanding is that fee—this tax, if you will—imposed by Despite widespread partisan gridlock on will either be the FDA user fee reau- the EU on U.S. airspace. By requiring Capitol Hill, at least one opportunity for bi- thorization or a small business tax bill. commercial aviation to comply, the EU cameral, bipartisan consensus exists: reau- Neither of those bills is bitterly par- ETS also limits airline capital that thorizing the National Flood Insurance Pro- could be available for other meaningful gram (NFIP). tisan or highly divisive. So I will be The flood program sits in limbo, set to ex- proposing as an amendment to either purposes, including their ability to in- pire on May 31. Extending the NFIP must be of those bills—whichever comes to the vest in more fuel-efficient engines, al- a top congressional priority. The NFIP pro- floor next—the full reauthorization of ternative sources of fuel, and research vides vital flood protection for more than 5.6 the National Flood Insurance Program and development. million home and business owners in 21,000 along the lines the Senate committee No one in Congress is against the EU communities across the country. Further- has proposed. implementing ETS within their bound- more, the housing market relies on a strong aries. However, I believe that any sys- and stable flood insurance program. Again, I urge my colleagues on both A lack of flood insurance coverage creates sides of the aisle to support that effort. tem that includes international and uncertainty in the housing market and I urge Senator REID to use that as a other non-EU airspace must be ad- leaves homeowners dangerously vulnerable mechanism to get that done now, this dressed through the International Civil to devastating floods, which are not just a month, before the expiration of the Aviation Organization, the ICAO poli- coastal issue. Flood disasters have been de- program. cies, of which the United States and 190 clared in every state and over the past cen- I yield the floor. countries are members. In fact, under tury have claimed more lives and property The ACTING PRESIDENT pro tem- current ICAO standards, the aviation than any other natural disaster. In 2010, the NFIP was allowed to lapse for pore. The Senator from South Dakota. industry is targeted to achieve a 1.5- 53 days, halting tens of thousands of real es- Mr. THUNE. Madam President, I ask percent average annual improvement tate transactions in areas where homebuyers unanimous consent to speak as in in carbon and fuel efficiency through are required to purchase flood insurance to morning business. 2020 and carbon-neutral growth from obtain a mortgage. Long-term reauthoriza- The ACTING PRESIDENT pro tem- 2020 forward. tion of the insurance program would help pore. Without objection, it is so or- That is why the U.S. airline industry provide the housing market with the cer- dered. and those advocates in the industry tainty it needs for a recovery. The National Association of Realtors esti- EMISSIONS TRADING also agree that a single global ap- mates that another lapse in coverage could Mr. THUNE. Madam President, in proach to greenhouse gas emissions set stall more than 1,300 home sales per day. And 2005 the European Union began their at the ICAO is preferred to the unilat- disruptions in flood insurance availability emissions trading scheme, which at- eral EU ETS system. Even the Obama leave all taxpayers exposed to widespread, tempts to cap emissions of carbon diox- administration testified before the costly relief efforts. ide from stationary sources within the House Committee on Transportation We have witnessed encouraging signs from and Infrastructure in July of 2011 that elected officials in recent months. EU. The Senate Banking Committee passed a Starting in 2012, civil aviation opera- an EU ETS is inconsistent with inter- five-year reauthorization bill at the end of tors departing from or landing in Eu- national aviation law. The State De- 2011 and the bill now awaits floor time. rope began to be included in this emis- partment and the U.S. Department of Last summer, the House passed its five- sions scheme. Under this program, any Transportation are also pressing this year reauthorization on a resounding, bipar- airline, including non-European air- issue with their counterparts in Europe tisan vote of 406–22. Additionally, the Obama lines flying into and out of Europe, will and are considering all legal and policy Administration has heralded the House legis- lation and urged Congress to adopt funda- be required to pay for EU emissions al- options to prevent further application mental NFIP reforms. lowances. This change comes at a time of EU ETS to U.S. air carriers. This is progress, but it will be of little when EU allowance prices continue to In addition, other nations have comfort to homeowners if Congress does not decline to a little over 6 euros, and the voiced opposition. Those nations in- act soon to pass a long-term reauthorization commission is considering proposals to clude Argentina, Brazil, China, India, for the NFIP. drive up the prices. Japan, the Republic of Korea, Mexico, As politics gets more polarized, Americans Allowances will be collected for the the Russian Federation, and South Af- are looking for signs that our elected offi- cials can work together to address real prob- entirety of the flight, including por- rica. In fact, China’s Ambassador to lems. Realtors and insurers stand together in tions in U.S. and international air- the EU recently suggested that they calling for Congress to put aside partisan dif- space. For example, this means a flight will begin canceling Airbus orders if ferences and bring much-needed certainty to leaving from Los Angeles, CA, and fly- the EU ETS remains in place. Also, a program on which so many Americans rely. ing to London would be taxed on the countries such as Italy, the Nether- Mr. VITTER. Madam President, I entirety of the flight, not just the frac- lands, France, Belgium, and Spain—all keep coming to the floor urging this tional part of the flight that is over EU EU member states—are calling for the because it is so important and because airspace. To put it another way, you postponement of EU ETS out of con- it is so achievable. Again, there are not would be taxed as if 100 percent of your cerns raised by the international com- big issues dividing us. This is not a par- flight was in EU airspace even though munity. Even European manufacturers tisan issue. We just need Senate floor approximately only 7 percent of the and airlines such as Airbus, Air time to get it done. In that vein, I will flight actually was; that is, a flight France, and British Airways have be doing two things today and in the originating in California here in the urged their respective governments to near future. United States and flying to London. stop the escalating trade conflict be- First, I will be passing around to all Very simply, the unilateral imposi- tween the EU and the rest of the world. Members of the Senate a new letter ad- tion of such a scheme on the United The EU has no right to play police- dressed to Senator REID to urge that States and other countries is arbitrary, man and undermine the ongoing work this matter be put on the floor as soon unfair, and a violation of international at the ICAO. As a result of this action as possible. In a letter dated February law. Plus, it is being done without any by the EU, on December 7, 2011, I intro- 14, we urged this on a bipartisan basis, guarantees for environmental improve- duced the European Union Emissions and 41 Senators, of both parties, signed ments and at a huge cost to the avia- Trading Scheme Prohibition Act, S. that. This new letter restates that tion industry and constituents we 1956, which now has seven cosponsors, case, and, of course, now it is more ur- serve here in this country. both Democrats and Republicans. The gent than ever as the clock ticks to According to the International Air bill gives the Secretary of Transpor- May 31—just 3 weeks and 1 day away. Transport Association, the economic tation the authority to take the nec- I will also be proposing an amend- cost of this program for airlines is ex- essary steps to ensure that America’s ment to the next matter that comes on pected to be $1.3 billion in 2012. Let me aviation operators are not penalized by

VerDate Mar 15 2010 03:35 May 10, 2012 Jkt 019060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.013 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S2996 CONGRESSIONAL RECORD — SENATE May 9, 2012 any system unilaterally imposed by That is fine. I have been here on the of this fund would have disastrous ef- the EU. The bill also requires the Sec- floor listening to my colleagues talk fects on the health of our kids and our retary of Transportation, the Adminis- about this since Monday. Everyone families. To eliminate the Prevention trator of the FAA, and other senior agrees we have to keep it at 3.4 percent and Public Health Fund will cost us U.S. officials to use their authority to and not let it go up, so it ought to be billions in the future for taking care of conduct international negotiations and a bipartisan issue. We ought to be able people who have chronic illnesses and take other actions necessary to ensure to move this rapidly and move on to chronic diseases and obesity. We know that U.S. operators are held harmless other matters. There are other issues that an investment in immunizing our from the action of the European Union. confronting us in the Senate. Yet here kids—for example, for every dollar, it The House of Representatives passed a we are on the floor again today dis- saves us $16 in saved health care costs. similar bill by a voice vote on October cussing the student loan interest rate. To eliminate this fund would lead to a 24, 2011. The U.S. commercial aviation As I said, we had the vote yesterday resurgence of vaccine-preventable dis- community, including airlines and to move it forward, but my Republican eases in every State due to the ex- manufacturers, are all supportive of colleagues blocked us from doing that. pected loss of more than 1.5 million my bipartisan bill. They agree we should keep the interest doses of lifesaving vaccines and nearly Next month, I am looking forward to rate at 3.4 percent, but not on how to 1,100 skilled public health workers. the Commerce Committee hearing that pay for it. Well, OK, fine; that is a le- Again, eliminating the Prevention is scheduled to take a closer look at gitimate point of debate and discussion and Public Health Fund would mean this important issue and at my legisla- and votes. So why don’t we move the eliminating vaccines for our kids, tion. bill forward, bring it to the floor, and eliminating public health workers who Doing nothing is not an option. The let’s have a debate and discussion on know how to deliver these vaccines and unilateral imposition of the EU emis- how we pay for it. If they want to offer respond to outbreaks. We would be los- sions trading scheme is a violation of an amendment, they can offer an ing public health staff at the State and international law and is hurting U.S. amendment and we will vote on it. It local levels. airlines, manufacturers, and con- seems to me—at least I think—that Eliminating this fund would end sup- sumers. Keep in mind that with near one of the responsibilities, and maybe port for increased calls to the tobacco record oil prices, the EU ETS will add privileges but responsibilities, of the quitline, meaning smokers encouraged to the already high amount airlines majority party in the Senate, which- to quit by the fund’s strategic and evi- and passengers pay for fuel. ever party it might be, is to initiate dence-based investments thus far We need to act now. We need to send legislation and bring it to the floor. would not have the support to keep a clear and unequivocal message and The privilege and responsibility of the that quitline going. If current smoking pass my bipartisan bill that addresses minority party is to be able to amend rates persist, 6 million kids living in this scheme and protects the U.S. avia- it, to try to make it better as they may the United States today will ulti- tion industry and American sov- see fit. I don’t think it should be a mately die from smoking. If we elimi- ereignty. I hope we will act on this leg- privilege and responsibility of the mi- nate the Prevention and Public Health islation and make sure that this issue, nority party to block everything, but Fund, we will be forced to reduce the once and for all, is put to rest and that we have seen that happen more and availability of mental health and sub- the European Union is not able to as- more over the last few years. Repub- stance abuse services to very vulner- sess a tax or a fee on American airlines licans won’t let us bring a bill to the able Americans. operating in American airspace. floor because under the rules it re- Eliminating the fund, as the Repub- I yield the floor and suggest the ab- quires 60 votes rather than 51 votes to licans want to do, would reduce invest- sence of a quorum bring a bill forward. So, again, we are ment in public health laboratory ca- The ACTING PRESIDENT pro tem- stuck because we can’t bring the bill pacity at the State and local levels, pore. The clerk will call the roll. forward. thereby reducing the speed with which The legislative clerk proceeded to I hope we have another cloture vote. we can detect and respond to outbreaks call the roll. Let’s keep having these cloture votes and, yes, maybe even terrorist events. The ACTING PRESIDENT pro tem- and maybe Republicans then will say, It would cut the number of disease de- pore. The Senator from Iowa. OK, let’s move it forward and let’s de- tectives that the Centers for Disease Mr. HARKIN. Madam President, I bate it and move on. So I hope that is Control and Prevention can train and ask unanimous consent that the order what we are going to be doing rather deploy. These disease detectives are for the quorum call be rescinded. than stopping the process in its tracks. our first line of defense against infec- The ACTING PRESIDENT pro tem- It is interesting to note that House tious diseases. pore. Without objection, it is so or- and Senate Republicans were silent on Eliminating this fund would result in dered. this issue until students from around layoffs, as I said, of public health offi- Mr. HARKIN. Madam President, here the country became aware of the im- cials in every State and community we are again in the Senate on yet an- pending increase and made their voices who are working on chronic disease other day when families and students heard. Democrats were already hard at prevention, immunization, health-care- across this country are wondering if we work on the solution. I would remind associated infections, and other health are going to do our duty. Are we actu- my colleagues that earlier this year, in problems. ally going to move legislation that will the budget debate in the House, an An elimination of the prevention keep the interest rate at 3.4 percent on amendment was offered by Democrats fund—again, I use the word ‘‘elimi- subsidized student loans or are we during the House budget process to ex- nation.’’ The Republican proposal going to let it go to 6.8 percent—dou- tend the current rate of 3.4 percent. wouldn’t just take some money from ble—on July 1? That amendment lost by a straight the prevention fund, it would kill the We have legislation and we brought party vote. Instead, the Republicans prevention fund. It would take every it to the floor. Yet yesterday my Re- proposed to pay for this by taking single penny out of it. publican colleagues voted to not even money from the Prevention and Public My friends on the Republican side proceed to it. I think the people of Health Fund. That is not an appro- say: Well, President Obama in his America are saying that this shouldn’t priate solution, killing the fund that is budget took money out of the preven- happen. We should be able to work preventing cancer and preventing un- tion fund. In fact, Democrats joined these things out. We should move legis- necessary diseases in the United with Republicans earlier this year in lation, not obstruct it. States. taking $5 billion out of the life of this Everyone now agrees we should keep My friends on the other side would fund to help pay for extending the un- the interest rate at 3.4 percent. The Re- have us believe that nothing bad will employment insurance program for the publicans say they want to keep it at happen if we eliminate the Prevention remainder of this year, as well as ex- 3.4 percent and we say we do. The Re- and Public Health Fund. They call it a tending the payroll tax cut. They use publicans were initially opposed to slush fund. There is no truth to that at that example to say, Well, we can kill this, but they have gotten onboard. all. The truth is that the elimination the whole thing. I must be very frank.

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.014 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S2997 I was not in favor of that $5 billion cut, What can we do in our communities, the instances in New York State, but I but be that as it may, as I used the our schools, our workplaces, our clin- will bet you communities there have analogy yesterday, it is one thing to ics, our community health centers? gotten together and thought about how take a couple of pints of blood and an- What can we do so that we don’t get to make life a little bit more healthy, other to take all the blood. A person sick, so we don’t get obese or diabetes, how to support a more healthy infra- can live if a couple of pints of blood are so we don’t have heart disease? Most structure for their people. taken; they can live and get healthy. people don’t know what to do. They Some communities are coming up That is what is happening to the pre- need some help. They need informa- with very ingenious ideas. I say more vention fund. The Prevention and Pub- tion. They need support. power to them. That is what the Pre- lic Health Fund is alive and well and That is what this prevention fund vention Fund is for—to help them, to doing its job even though some money does. We know it works. We know. We encourage them, to give them the kind is taken out of it. What the Repub- have evidence-based programs out of support they need to provide that licans want to do is take all the blood there that work. The Centers for Dis- healthy living. out and kill the whole program. ease Control and Prevention is doing I have said many times, it is inter- President Obama has said he will an outstanding job across this country esting that in America it is easy to be veto this bill if there are any cuts in in these programs: from community unhealthy and hard to be healthy. One the Prevention and Public Health programs, to public health infrastruc- would think it should be the other way Fund. So there has been a line drawn. ture, to clinical preventive services, re- around. It should be easy to be healthy We took some money out of it before, search, tobacco prevention programs, and harder to be unhealthy. It is just but no more. That is it; no more money detection and prevention of infectious the other way around. is coming out of this prevention fund diseases, and training and preparing So what we are trying to do with because of the good it is doing in this the public health workforce—all of some part of the prevention fund—not country. this. all of it; part of it—is to make it easier An elimination of this fund, which That is why prevention is not just to be healthy, to make that an easier the Republicans want to do, would stop something people go into a doctor’s of- option for people. in midstream across our country ef- fice to get a shot for or get a prescrip- So if we both agree—Republicans and forts to address the risk factors for tion for and people get a pill for. Pre- Democrats—on the fact that we need to heart disease, diabetes, obesity, and vention encompasses a lot of different keep the interest rate on student loans cancer—the leading causes of death and things—everything from newborn at 3.4 percent, then the debate is just health care costs. Yesterday in this screening, immunizations for children, on the offset. As I have said, Repub- Chamber I read from a new Centers for school-based programs, and better food licans want to kill the prevention fund. Disease Control and Prevention report and nutrition in our school meals for The American people have said loudly: that finds that if we could prevent the kids. No, we do not want to do that. We want obesity rate from increasing past its Communities change the way they more investment in prevention. We do current 34-percent rate right now, we operate and do things—more walking not want to get sick. We do not want to could save nearly $550 billion in the paths, more bike paths. The other day get obese. We want to quit smoking. next 20 years. there was something said about Illinois We want our kids to be healthy. We In 1980, the obesity rate was right at had used some of this for signage and want them to have healthier food, bet- about 15 percent in this country. walking paths for kids. I pointed out, ter exercise. Republicans are saying: Today, as I said, it is 34 percent. If it yes, they did. What happened is the Well, we are just not going to do that. increases at the rate they expect, look- number of kids walking to school in- I guess we will pay more for it in ing at all indicators now, 42 percent of creased, and that cut down on the num- chronic illnesses and diseases down the all Americans will be obese by 2030 and ber of buses they had to use. It saved line. one out of every four of them will be the school some money, and the kids severely obese. That means a huge in- got healthier. Well, our offset is one that I think is crease in adult onset diabetes and all I have often used the example that legitimate and sound, closing a loop- the accompanying health care risks when I first moved to Washington in hole in the Tax Code. That means more and costs, including heart disease and 1979, when I was in the House, my wife money would go into the Social Secu- stroke, that accompany obesity. and I purchased a home in Virginia. We rity and Medicare trust funds, and it We know how to address it. We have still live there. One of the reasons we would help us keep the interest rate at evidence-based programs that we know bought it was because we were about a 3.4 percent. work in keeping the obesity rate down. mile away from a school, a high school. Education has always, and I hope will That is what the prevention fund does. We thought: That is great. The kids always, remain a bipartisan issue here. The Republicans want to kill it. They can just walk to school. Little did I I urge my Republican colleagues to say no, get rid of it. know there were no walking paths to come to the table with a serious off- Cuts to our chronic disease preven- the school. It was a busy street. There set—a serious offset. If they do not like tion programs would mean 120 million was a sidewalk for a little ways, and what we have proposed, please come Americans—1 in every 3 citizens— then there was not one. The kids could with something that is serious. Elimi- would lose access to preventive serv- not walk. So they had to take a bus nating the prevention fund is a no- ices. It would mean $103 million no just to go 1 mile. starter. As the President said, he would longer available to States and counties So, again, communities putting in veto it. So why push it? and local jurisdictions to provide these sidewalks, safe passages for kids to do I think this is an opportunity for all services. Over 20 million Americans in that, that is healthy living. I have seen of us to come together and show the rural areas in New York and in Iowa instances in my own State where com- American people this body is not bro- and all across this country would no munities have put in walking paths for ken; we can work with each other and longer have access to preventive serv- the elderly, for senior citizens, so they get things done for the good of our peo- ices and programs. do not have a lot of steps and things to ple. Again, I encourage my Republican The American people get it. Our citi- go up and down. You would be amazed colleagues to allow us to move forward zens, whom we represent, get it. They how many people use that and stay on the bill. Do not keep blocking it. If understand. A poll was taken which healthy. they want to offer a different offset, said that voters overwhelmingly sup- Supporting systems in our work- fine. Not this one, not the elimination port more investment in prevention. places, making our workplaces more of the prevention fund because that is This is from a 2009 public opinion poll: healthy, helping businesses understand not serious. That is not going any- 71 percent of Americans polled said yes, what they can do to provide a healthier where. If they have some other ideas, do more, invest more in prevention. workplace for people—examples abound bring them forward. As of yet we have Our fellow citizens are crying out to us all over this country. seen nothing from my Republican col- for help. They want help. They want to I say to the Acting President pro leagues other than stopping the bill— know what to do. How do they change? tempore, I am sure I do not know all stopping it, stopping it, stopping it.

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.018 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S2998 CONGRESSIONAL RECORD — SENATE May 9, 2012 So I hope they will come to the table, and debilitating health problems, Republicans think they have a better and I hope we can move this bill for- choose between education and health way, let’s debate their alternative and ward. care. Choosing to allow more health let’s vote. Let’s end this filibuster. Madam President, I yield the floor. problems in order to help students and Let’s end it today. The ACTING PRESIDENT pro tem- their families is not a choice at all. Madam President, I yield the floor. pore. The Senator from Michigan. Democrats are offering a different al- The ACTING PRESIDENT pro tem- Mr. LEVIN. Madam President, first, I ternative. We recognize the Tax Code is pore. The Senator from Virginia. commend my friend from Iowa for full of loopholes and special breaks Mr. WEBB. Madam President, I ask being such a phenomenal champion of that allow some individuals and some unanimous consent to speak for 15 min- preventive health care. He has been corporations to avoid paying taxes. In utes as in morning business. fighting for this as long as he has been this case, what is identified is a tax The ACTING PRESIDENT pro tem- in the Senate, and he has had some break that allows some professional pore. Without objection, it is so or- great victories. He has had some set- service providers such as lawyers to dered. backs but mainly victories. It is be- avoid paying their payroll taxes by or- WAR POWERS cause of his energy and effort that we ganizing their businesses as so-called S Mr. WEBB. Madam President, I rise are where we are today in terms of get- corporations and then paying them- today to address perhaps the most im- ting this money for preventive health selves in the form of dividends instead portant constitutional challenge facing care, and his continued effort to fight of salaries. The Government Account- the balance of power between the Pres- for it and to preserve this fund is nota- ability Office recently examined this idency and the Congress in modern ble. It is going to succeed. If it does, issue and found widespread problems, times, and also to offer a legislative so- and when it does, it will be mainly be- costing taxpayers and the Treasury bil- lution that might finally address this cause of our friend from Iowa. lions of dollars each year in uncol- paralysis. It is an issue that has for far Our Republican colleagues could lected revenues. too long remained unresolved. And for have allowed us yesterday to begin de- What our bill would do is require the the past 10 years, the failure of this bate on legislation to fix the looming professional service providers with in- body to address it has diminished the increase in student loan interest rates. comes above $250,000 a year to pay pay- respect, the stature, and the serious- They could have helped us avoid adding roll taxes on the income they derive ness with which the American people to the already crushing weight of stu- from these S corporations. We would have viewed the Congress—to the det- dent debt that families in our country use the revenues from closing that riment of our country and to our na- face. They could have joined us in tak- loophole for those with incomes above tional security. ing a step toward letting parents do $250,000 to prevent the interest rate The question is simple: When should the President have the unilateral au- what parents desperately want to do, hike that is going to hit middle-income thority to decide to use military force, which is to help their kids to a better families. At the same time we are and what is the place of the Congress future. going to be able to do that, we are also American families are waiting for us going to avoid increasing the deficit or in that process? What has happened to to act. On July 1 the interest rate on slashing important programs. reduce the role of the Congress from the body which once clearly decided student loans is going to increase from Our Republican colleagues have ac- whether the Nation would go to war, to 3.4 percent to 6.8 percent. It is going to cused us—to quote one of them—of the point that we are viewed as little double unless we act. For every year raising taxes on ‘‘the people that are more than a rather mindless conduit we fail to act, it will cost the typical doing some of the very serious job cre- that collects taxpayer dollars and dis- college student and their family $1,000. ation in this country.’’ Well, not long ago Republicans were penses them to the President for what- That is $1,000 that most families do not saying something different about this ever military functions he decides to have to spare. More than 7 million stu- loophole. For starters, they actually undertake? dents and their families nationwide called it a loophole. That is what We know what the Constitution says. would be affected. So the need to act is former Vice President Cheney called it Most of us also know the difficulties urgent. during his 2004 Vice Presidential de- that have attended this situation in Instead, in what has come to be a bate. the years that followed World War II. damaging ritual in the Senate, Repub- He called it a ‘‘special loophole.’’ He We are aware of the debates that re- licans have filibustered a motion to accused his debate opponent of dodging sulted in the war powers resolution of proceed to important legislation. Re- $600,000 in payroll taxes using this nearly 40 years ago in the wake of the publicans have voted against even al- loophole. Likewise, a Republican can- Vietnam war, where the Congress at- lowing the Senate to begin to debate a didate for the Senate not long ago tempted to define a proper balance be- bill. Why not debate it? Why not offer called this ‘‘a deceptive tax scheme to tween the President and this legisla- relevant amendments? Why not address get around the IRS.’’ There were no tive body. I have strong memories of this important issue? Republican cries then about raising the policy conflicts of that era, first as No. By their filibuster, our Repub- taxes on job creators. a marine infantry officer who fought lican colleagues have refused to let the The fact is this loophole ought to be on the unforgiving battlefields of Viet- Senate even start this process. Repub- closed, no matter who is taking advan- nam, on which more than 100,000 U.S. licans say they too want to prevent tage of it, Democrats or Republicans. marines were killed or wounded, and this increase in student loan interest Closing it, at least for those with in- later as an ardent student of constitu- rates. They differ with us, they say, on comes above $250,000, in order to avoid tional law during my time at the how to pay for it. Republicans say the another blow in a long series of blows Georgetown University Law Center. only way they are going to support this to middle-income Americans just But it was in the decades following legislation to prevent the rate increase makes sense and is fundamentally fair. Vietnam that our constitutional proc- is with cuts from a fund that helps to Hundreds of thousands of students in ess seems to have broken apart. Year prevent infectious and chronic dis- my State of Michigan depend on stu- by year, skirmish by skirmish, the role eases. dent loans to help afford college. They of the Congress in determining where The program Republicans seek to and their families know college is not the U.S. military would operate and eliminate has provided more than $8 going to get any cheaper. They do not when the awesome power of our weap- million to my State to help fight major need a doubled interest rate on top of ons systems would be unleashed has di- health problems, such as influenza, dia- tuition increases. For many an afford- minished. In the aftermath of the 9/11 betes, HIV, heart disease, and cervical able loan is the difference between attacks, especially with the advent of cancer. These funds even helped to pro- staying in school or giving up the special operations forces and remote vide funding for childhood immuniza- dream of a college education. We bombing capabilities, the Congress tions programs. So what the Repub- should not let this loophole stand in seems to have faded into operational licans propose is this: choose between the way of those dreams. irrelevance. helping college students and their fam- I urge our Republican colleagues to Congressional consent is rarely dis- ilies and helping to prevent expensive end their filibuster of this vital bill. If cussed. The strongest debates surround

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.019 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S2999 the rather irrelevant issue of whether clearly defined. This is the ridiculous ists, is imminent and must be pre- the Congress has even been consulted. extreme we have now reached. The empted; if treaty commitments specifi- We have now reached the point that world is filled with tyrants. Demo- cally compel us to respond to attacks the unprecedented—and, quite frankly, cratic systems are far and few between. on our allies; if American citizens are contorted—constitutional logic used by I don’t know exactly what objective detained or threatened; if our sea lanes this administration to intervene in standard should be used before the U.S. are interrupted, then, and only then, Libya on the basis of what can most Government would decide to conduct a should the President order the use of kindly be called a U.N. standard of hu- so-called humanitarian intervention by military force without first gaining the manitarian intervention was not even using our military power to address do- approval of the Congress. subject to a full debate or a vote on the mestic tensions inside another coun- At least until recent months, the Senate floor. Such an omission, and try, and I don’t believe anyone else Congress has never accepted that the the precedent it has set, now requires knows either. But I will say this: No President owns the unilateral discre- us to accept one of two uncomfortable President should have the unilateral tion to initiate combat activities with- alternatives. Either we as a legislative authority to make that decision either. out direct provocation, without Ameri- body must reject this passivity and live I make this point from the perspec- cans at risk, without the obligations of up to the standards and expectations tive of somebody who grew up in the treaty commitments, and without the regarding Presidential power that were military and whose family has partici- consent of the Congress. The recent ac- laid down so carefully by our Founding pated as citizen soldiers in most of our tions by this administration, beginning Fathers or we must accept a redefini- country’s wars, beginning with the with the months-long intervention in tion of the very precepts upon which American Revolution. I was proud to Libya, should give us all grounds for this government was founded. serve as a marine in Vietnam, and I am concern and alarm about the potential This is not a political issue. We equally proud of my son’s service as a harm to our constitutional system would be facing the exact same con- marine infantryman in Iraq. I am also itself. We are in no sense compelled—or stitutional challenges no matter the deeply grateful for having had the op- justified—in taking action based on a party of the President. In fact, unless portunity to serve 5 years in the Pen- vote of the United Nations or as a re- we resolve this matter, there is no tagon, first as a marine, then later as sult of a decision made by a collective doubt we someday will. Assistant Secretary of Defense and as a security arrangement, such as NATO, The conflict in the balance of power Secretary of the Navy. I have also ben- when none of its members have been between the President and the Con- efited over the years from having attacked. It is not the prerogative of gress has always been an intrinsic part served in many places around the world the President to decide to commit our of our constitutional makeup. Article as a journalist, including in Beirut dur- military and our prestige into situa- I, section 8 of the Constitution provides ing our military engagement there in tions that cannot clearly be deter- that the Congress alone has the power 1983 and in Afghanistan as an embedded mined to flow from vital national in- to declare war. Article II, section 2 of journalist in 2004. As most people in terests. Who should decide that? I can’t per- the Constitution provides that the this body know, I am one of the strong- sonally and conclusively define the President shall serve as Commander in est proponents of the refocusing of our boundaries of what is being called a hu- Chief. In the early days of our Repub- national involvement in East Asia. I manitarian intervention and, most im- lic, these distinctions were clear, par- was the original sponsor of a Senate portantly, neither can anybody else. ticularly since we retained no large resolution condemning China’s use of Where should it apply? Where should it standing army during peacetime, and force with respect to sovereignty issues not? Rwanda? Libya? Syria? Ven- since article I, section 8 also provides in the South China Sea. ezuela? Bangladesh? In the absence of a that the Congress has the power to The point is I am not advocating a clear determination by our time-hon- ‘‘raise and support armies,’’ a phrase retreat from anywhere. But this ad- ored constitutional process, who should that expressed the clear intent of the ministration’s argument that it has decide where our young men and Framers that large ground forces were the authority to decide when and women or our national treasure should not to be kept during peacetime but, where to use military force without the be risked? Some of these endeavors instead, were to be raised at the direc- consent of the Congress, using the frag- may be justified, some may not. But tion of Congress during the time of ile logic of humanitarian intervention the most important point to be made is war. to ostensibly redress domestic tensions that in our system no one person Our history confirms this, as our ar- inside countries where American inter- should have the power to inject the mies demobilized again and again once ests are not being directly threatened U.S. military and the prestige of our wars were completed. Only after World is gravely dangerous. It is a bridge too Nation into such circumstances. War II did this change, when our rather far. It does not fit our history. To give Our Constitution was founded upon reluctant position as the world’s great- one individual such discretion ridicules this hesitation. We inherited our sys- est guarantor of international stability our Constitution. It belittles the role tem from Great Britain, but we adapt- required that we maintain a large of the Congress. For anyone in this ed and changed it for a reason. One of standing military force, much of it sta- body to accept this rationale is also for our strongest adjustments from the tioned in Europe and Asia, ready to re- them to accept that the Congress no British system was to ensure that no spond to crises whose immediacy could longer has any direct role in the devel- one person would have the power to not otherwise allow us to go through opment, and particularly in the execu- commit the Nation to military the lengthy process of mobilization in tion, of foreign policy. schemes that could not be justified by order to raise an army and because of There are clear and important bound- the interests and the security of the that reality made the time-honored aries that have always existed when average citizen. President after Presi- process of asking the Congress for a considering a President’s authority to dent, beginning with George Wash- formal declaration of war in most cases order our military into action without ington, has emphasized the importance obsolescent. the immediate consent of the Congress. of this fundamental principle to the But any logical proposition can be To exceed these boundaries—as the stability of our political system and to carried to a ridiculous extreme. The President has already done with the the integrity of our country in the fact that some military situations have precedent set in Libya—is to delib- international community. The fact required our Presidents to act imme- erately destroy the balance of powers that the leadership of our Congress has diately before then reporting to the that were built so carefully into the failed to raise this historic standard in Congress does not, in and of itself, give Constitution itself. the past few years, and most specifi- the President a blanket authority to These historically acceptable condi- cally in Libya, is a warning sign to this use military force whenever and wher- tions under which a President can uni- body that it must reaffirm one of its ever he decides to do so, even where laterally order the military into action most solemn responsibilities. Americans are not personally at risk are clear: If our country or our mili- I have been working for several and even where the vital interests of tary forces are attacked; if an attack, months to construct a legislative solu- our country have not been debated and including one by international terror- tion to this paralysis. This legislation

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.015 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3000 CONGRESSIONAL RECORD — SENATE May 9, 2012 would recognize that modern cir- be able to be done. Good luck. We wish we do not double the interest rate. We cumstances require an adroit approach you the best. And off they went and had a vote earlier this week that did to the manner in which our foreign pol- most of them got off the board very not succeed. We tried on this side to icy is being implemented. But it would quickly. We were able to bring it to- move it forward. It is important for us also put necessary and proper bound- gether. In the process, in my experi- to make sure every kid has access to aries around a President’s discretion ence around the issue of education, in education—whether it is higher edu- when it comes to so-called humani- making sure young people had the ca- cation, career education, voc education tarian intervention, where we and our pacity to borrow money at reasonable or whatever the new title is they like people are not being directly threat- rates, it went down about 2 percent, to use to describe it—because we are in ened. My legislation requires that in which is a pretty incredible rate for a a globally competitive economy, and any situation where American inter- student or parent to borrow money at. we need to make sure our kids are well ests are not directly threatened, the I was also chair of the Postsecondary educated and have access to education, President must obtain formal approval Education Commission for 7 years, a which means affordability. by the Congress before introducing copartner with the Student Loan Cor- Yesterday I was listening to the de- American military force. This legisla- poration, making sure we had strong bate, and this is where my small busi- tion will also provide that debate on educational institutions to provide ca- ness part comes in. I have been in the such a request must begin within days reer, college, and other types of edu- small business arena since the age of of the request and that a vote must cation for young people. I come with 14. I have operated and owned a variety proceed in a timely manner. that experience, and also I come from of businesses—some successful, some I remind the leadership on both sides experience as a small businessperson, not so successful. Hopefully, you learn of this body that despite repeated calls which I will get to in a minute, with from those that are not so successful, from myself and other Senators, when regard to how we are trying to pay for and I think I have. The Democrats’ this administration conducted month this interest rate, controlling the in- pay-for—the majority’s pay-for—was to after month of combat operations in terest rates and making sure they close a tax loophole used by high-in- Libya, with no American interests di- don’t rise. The rate for subsidized in- come earners—basically lawyers, lob- byists, and consultants. No disrespect rectly threatened and no clear treaty terest loans will rise from 3.4 percent to their fields, but they basically use provisions in play, the Congress of the to 6.8 percent in July. That will in- the system to avoid paying the Medi- United States, both Democratic and crease the average cost for students by care taxes, for example, that all of us Republican, could not even bring itself $1,000 over the course of a loan. Stu- pay. All of us who sit in this Chamber, to have a formal debate on whether the dents are truly waiting and families the people who work at the restaurants use of military force was appropriate, are waiting, as kids are graduating outside here, the people who drive the and this use of military force that went right now across this country from buses, and everyone else, pays that tax. on for months was never approved. The high school, getting ready to move on But some use this to organize under an administration, which spent well over to higher education and making their S corporation. It is a technical term plans—be they scholarships or grants $1 billion of taxpayer funds, dropped under the IRS Code that allows those or loans or whatever they need to cob- thousands of bombs on the country and profits to go right to the individual. So ble together the amount of money operated our military offshore for they decided instead of paying it as a needed to move on to a higher edu- months, claimed that combat was not wage, they would take it as profit or a cation and to ensure they can afford it. occurring and rejected the notion that dividend, thus avoiding the Medicare And the interest rate is part of that the War Powers Act applied to the situ- taxes all of us pay. They are getting a equation. Doubling the interest rate ation. I am not here to debate the War free ride. Powers Act; I am suggesting that other would be damaging to our young fami- I heard the phrase used yesterday on statutory language that covers these lies who are making sure their kids can the floor, ‘‘a bunch of new taxes.’’ kinds of situations must be enacted. get on and have an opportunity to be These aren’t new taxes. These are taxes The legislation I will be introducing educated. that are owed. They just found a loop- will address this loophole in the inter- As you know, many of us have gone hole—again, consultants, lobbyists and pretation of our Constitution. It will onto our Facebook page and Twitter lawyers—through the writing of the serve as a necessary safety net to pro- accounts and asked constituents from laws. And they probably wrote them. tect the integrity and the intent of the our districts to tell us their stories— Actually, they did, if you look at the Constitution itself. It will ensure that tell us what is happening: If this inter- history of it. They wrote the law so the Congress lives up not only to its est rate doubles, what will happen to they could avoid the Medicare taxes prerogatives, which were so carefully you. One Anchorage resident says her everyone else has to pay. So when I laid out by our Founding Fathers, but granddaughter graduated from Charter hear people saying it is the restaurant also to its responsibilities. College. I know this college well. This owner, it is the retailer, the plumber, I With that, I yield the floor. is a privately run college which has an think, that is a bunch of baloney. That The ACTING PRESIDENT pro tem- incredible placement rate—almost 90- is misinforming the public. It is unbe- pore. The Senator from Alaska is rec- percent placement rate once they grad- lievable. I know this, because as a ognized. uate with their degree. It is an inten- former retailer who had an S corpora- Mr. BEGICH. Madam President, I sive program. It is like a job. Students tion, we paid our taxes. We paid with a come down to talk about the issue of are there 8 to 5 every day, all day, for wage. We paid it all. student loans, as someone who has two several months, and they consolidate This loophole is clear. All you have ends of this equation—one as the the time. She has been working on her to do is look at it. They have to meet former chairman of the Student Loan accounting degree, and now, 6 years three standards: modified gross income Corporation for the State of Alaska for later—because she had to work two above $250,000 for joint filers, $200,000 7 years. I took that corporation from jobs while going to school, trying to for individuals and shareholders, and the brink of bankruptcy, junk bond pay for this and borrowing money—her an S corporation that derives 75 per- rating, you name it—it was in dismal total debt is $72,000. She is 31 years old. cent or more of gross revenues from condition. We turned it around, and 7 Her family is truly wondering how she services of three or fewer shareholders. years later the corporation ended up will ever get out of debt if this bill Service is defined as lobbying, law, en- paying a hefty annual dividend to Alas- doesn’t pass, because if the interest gineering, architect, accounting, actu- ka for higher education and had one of rates adjust, it is truly money that arial science—which is a science—per- the lowest interest rates in the country comes out of her pocket to literally forming arts, athletes, and brokerage and increased the capacity for students pay off interest, and the net result is services. I am looking here, and I don’t to borrow money not only for 2- and 4- she gets deeper and deeper in debt. see where it says retailers. It doesn’t year degrees and master’s degrees but We know the cost of college is more say the mom-and-pop folks who work also for career education, something and more expensive every year, and one every day and pay their taxes. most people told me, when I became way we are going to make sure stu- So for Members to come to the floor chair of that corporation, would never dents can afford this is by making sure and try to trick the public—because

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.016 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3001 that is what they tried to do by using I know there is another alternative But don’t take it from me about how convoluted words, knowing people are out there. There is a new pay-for, and tough this is going to be, take it from getting the 10-second sound bites—say- here is what that does: It takes away the students and the families them- ing, oh, it is going to raise new taxes prevention funds for health—$226 mil- selves. Just as the Presiding Officer and cause all these small businesses lion used to reduce diabetes and heart has heard from thousands of families not to hire, that is baloney. This is disease. I don’t know about my col- all across Alaska, we have been hearing about lawyers, lobbyists, and consult- leagues, but if we don’t prevent it, then the same online and through e-mail ants who wrote the law making sure we may have a higher cost later. Those about what this would actually do to they didn’t have to pay a dime. That is are preventable diseases. This money is their families. what that is about. For people to come well invested. They also want to take I heard from one New York parent to the floor and say we are going to away the $93 million used for anti-to- who has a child in college and another raise the interest rate on hard-working bacco education and $190 million used heading there this fall. His older child families who are trying to get their for immunizations. spent a year in AmeriCorps, and his kids through college is unbelievable. Our Republican friends do not like younger is there serving now. He said: I hope we take this up again. I hope the plan that closes the loophole on These kids are serving America. Both of we vote on it and get this thing re- lobbyists, lawyers, and consultants, my kids will leave college with around solved, and make sure working families but they do like the one that takes $25,000 in debt, if we can afford to keep it down that much. can afford to get their kids into college away prevention programs that help and can afford the high cost so they the middle class, that helps our young We should all be able to agree that can become productive parts of this families who might be experiencing adding another $1,000 or more per year country, perhaps opening their own signs of a preventable disease—heart to the debt of kids who are only look- small business and paying their taxes, disease. And a little prevention might ing to serve this country, get a good as every other small business does. save their lives, but it will also save on education, and help rebuild this econ- I was appalled when I heard some of health care costs in the future. omy is wrong. I heard from a woman in the Bronx. the Members speaking on this, and I see this proposal as crazy talk. I She has a job as a social worker, and they sounded so logical. But to be don’t know how else to describe it. I she is on track to pay off her student frank with you, there are not many in am trying to keep it simple. Let’s get loans in the next 10 or 11 years—just in this body—no disrespect to my col- on with closing the loopholes people time for her twin daughters to start leagues—who have owned and operated took advantage of by lobbying and college. She said: a true small business. I am talking wheeling and dealing in the halls of Doubling my student loan interest will about starting with a few nickels and Congress. Let’s fix that and protect our dimes because you got turned down by keep me in debt at a time when I am going working families, our middle-class to need every single penny to get my kids the bank; where the banker told you families, and make sure we are doing through college with as little debt of their your idea was a dumb idea. I can say the right thing. That is what they sent own as possible. The more interest I pay, the this from personal experience. Three us here to do, and I think we have an more they’ll have to borrow for their own years later, I sold that business for obligation. educations, and the cycle will continue in- three times what I had invested. I Again, I hope we move forward and definitely. thought it was a good idea, but the make sure we are not going to allow I heard from a woman in Saratoga banker didn’t. But I had to scratch to- the rates on these loans to double. I am with a bachelor’s degree in hotel, re- gether two nickels to make that busi- not for doubling the rates; 3.4 percent sort and tourism management. Despite ness successful. I had to work 12 to 15 is a good rate. We should ensure stu- making good money, she says that pay- hours every day to make sure it was dents can get that rate as they get pre- ing $800 a month in student loans on successful. That is a small businessper- pared for the fall session and are bor- top of her everyday bills makes getting son. There are not many in this body. rowing money to get on with their by nearly impossible. She said: So when a Member comes to the floor higher education. My choice is to instead decide what bill and sounds so professional in their de- I thank the Chair, I yield the floor, I’m going to pay this month, making me fall scription of how it is going to affect and I suggest the absence of a quorum. behind on other payments, destroying my certain people, it is incorrect. And one The ACTING PRESIDENT pro tem- credit in the future. If my interest rate was thing I wouldn’t mind in this body is to any higher, I honestly do not know how I pore. The clerk will call the roll. would survive at all. Pretty much all the have factual debates. That is what the The assistant legislative clerk pro- money I am making is going straight into public deserves, not this kind of 10-sec- ceeded to call the roll. student loans. We need all the help we can ond media bite, where they can get Mrs. GILLIBRAND. Mr. President, I get. away with anything and then say back ask unanimous consent that the order These are just a few of the stories I home, we didn’t raise taxes, we didn’t for the quorum call be rescinded. heard yesterday. And the families ex- do this. What they are doing is jacking The PRESIDING OFFICER (Mr. pect better from us. up rates on students. That is what is BEGICH). Without objection, it is so or- When we price young people out of a going to happen at the end of the day dered. college education, we all are going to here, by July 1, if we don’t take action. Mrs. GILLIBRAND. Mr. President, I pay the price. When we limit their op- And we have taken action on this rise today to join my colleagues in portunity, we rob ourselves of those fu- side. But the end result will be that calling for a real solution to the im- ture engineers, biologists, and small families, hard-working families, mid- pending student debt crisis. Yesterday business owners. America’s ability to dle-class families, will pay more for we had a chance to do the right thing lead the global economy relies on our their students’ education, and students and stand with millions of young ability to outeducate the global com- will pay more for their education be- Americans all across our country, to petition. cause of a simple law that we can cor- invest in their future by preventing Let’s open doors to higher education rect. All we have to do is close the these interest rates from doubling on to anyone who is willing to work for it, loophole that lobbyists, lawyers, and Stafford loans 52 days from now. In- and let’s keep it affordable. Let’s re- consultants are taking advantage of stead, our colleagues across the aisle ward hard work and responsibility in- and wrote to their advantage to stick chose to stand in the way of a common- stead of risk taking. There is no excuse it to the middle class. I think it is time sense proposal. As a result, 7 million for inaction, so let’s have a real debate, to reverse the trend, for once, around students are facing higher interest in good faith, to solve this problem we this place—just once—and give the rates that will cost them each an extra all know is within our reach. Students middle class a break here. This is a $1,000 a year in interest, further push- and families all across America can’t break they deserve and it will help to ing access to quality higher education afford any more delay. build our economy in the future be- out of reach for too many and saddling Mr. President, I suggest the absence cause we will have a highly educated others with additional unmanageable of a quorum. workforce meeting this global econ- debt when they get out of college and The PRESIDING OFFICER. The omy. join the workforce. clerk will call the roll.

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.021 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3002 CONGRESSIONAL RECORD — SENATE May 9, 2012 The assistant legislative clerk pro- I have a personal interest in charter that are failing, and we can expect ceeded to call the roll. schools. Twenty years ago, I was the more to be approved next year. Mr. ALEXANDER. Madam President, U.S. Secretary of Education. I was in So the question often is asked, well, I ask unanimous consent that the order my final year. The last thing I did in are charter schools really helping stu- for the quorum call be rescinded. 1992 as Secretary was to write a letter dents? And in some ways the jury is The ACTING PRESIDENT pro tem- to all the school superintendents in still out. Charter schools are relatively pore. Without objection, it is so or- America urging them to try what a new, and there are many factors that dered. small number of Minnesota public go into the success of a student in a CHARTER SCHOOLS schools were doing in what they were school, the No. 1 factor being what hap- Mr. ALEXANDER. Madam President, then calling startup schools. These pens at home. But there are good and this week is the 13th annual National were the first charter schools in Amer- encouraging indications. Charter Schools Week. On Tuesday, ica. Their origin was primarily from A recent study by Stanford Univer- Senator LANDRIEU of Louisiana and I those who were part of the Democratic sity found that two-thirds of the char- joined with 10 other Senators in sub- Farmer Labor Party in Minnesota. But ter schools in Tennessee have been im- mitting a resolution praising teachers, at the same time, on the conservative proving student performance in reading administrators, parents, and students side of the ideological spectrum, there or math at a faster rate than com- who are part of the charter school were many who were calling for getting peting traditional district public movement across our country. rid of teacher union rules and State schools. Sixty-seven percent of charter Let me begin by explaining exactly rules and regulations that were making schools in Tennessee have been improv- what a charter school is because some- it harder for teachers to teach. So ing the overall growth of their students times we stand here in the Senate and there was a happy convergence of sup- for the last 3 years. start talking without explaining the port for this idea of startup schools. But that means that 30 percent of the subject. A charter school is the Mem- I remember that Albert Shanker, the charter schools weren’t performing as phis Academy of Science and Engineer- late head of the American Federation well or were performing worse. So the ing. I visited there 4 years ago during of Teachers, supported the idea from fact is, not every charter school is spring break. Most of the students in the beginning. But many of those in going to be successful. Not every start- Memphis were somewhere else, but not the teachers unions opposed him. Many up business is successful. But we have the students at the Memphis Academy of those in the education establishment a model in our country that reminds us of Science and Engineering. These were didn’t like it. They were afraid of what of what can happen when we have au- sophomores studying advanced place- might happen. tonomous institutions where adminis- ment biology. These were children who Well, here is what has happened over trators and teachers have the privilege had been in other schools the year be- the last 20 years. Instead of a handful of using their own judgment and com- fore that were deemed to be low-per- of schools in Minnesota, we now have mon sense to make things happen, and forming schools. In other words, these about 5,600 charter schools in America we call that higher education. were among the students in Memphis today. About 5 percent of all of our In the United States of America, we considered least likely to succeed. But public schools are charter schools. The have around 6,000 institutions of higher they were fortunate. They were al- way they work is very simple. They are education. There are all kinds—Ye- lowed to go to this charter school. public schools, and the money the shiva University, Nashville Auto Diesel Their parents had chosen this charter State and local government would ordi- College, Vanderbilt University, the school. narily spend on their district school University of Tennessee, Notre Dame, Here is what was different about the follows each child to the charter or Stanford. There are many different school. The union rules, the State school. So it is just a public school or- kinds—for-profit, nonprofit, public, rules, and the Federal rules had been ganized in a different way. nonpublic. But they are all largely au- relaxed so that the teachers had the The first one, as I said, was in 1992— tonomous and the students choose the freedom to do what they thought those City Academy High School in St. Paul, schools they attend. And what has hap- children needed in that school. In this MN. In 1997, President Clinton called pened? Everyone in the world agrees case, many of these children didn’t for creating 3,000 charter schools by that we have not only the best colleges have as much at home as other chil- 2002. This was after the first President in America, but we have almost all of dren did, so the teachers decided that Bush had called for creating ‘‘break the the very best colleges. the school ought to be open 12 hours a mold’’ schools in every school district So our goal should be to gradually in- day, that it ought to be open on Satur- in America—another name for what we crease the number of charter schools. day morning, and that it ought to be call charter schools today. And then in At the same time, it is important that open more weeks a year than other 2002 the second President Bush called there should be some accountability. I schools. And the students were there for $200 million to support charter know that in Tennessee they have a on spring break studying advanced schools. Today, 41 States have charter tough review board, and if a charter placement biology, which is not what schools, and the schools serve more school is not working, it is closed many sophomores do in many schools than 2 million students—about 4 per- down. That should be the case in many in this country. And these children cent of the 50 million students in our other places. You might ask: Why were succeeding. public schools today. would you go through that struggle? The charter school was able to pay I am proud to say that our own State Well, we should be doing that with some teachers more than others. It was of Tennessee has had a strong charter some of the non-charter public schools able to have some classes that were school movement since 2002, and only as well, and we are beginning to that smaller than others. It meant that recently has the State charter law been with so-called turnaround schools. some scheduled classes were longer amended to remove the cap on the Charter schools should be held to the than others and some children got spe- number of schools in the State and lim- same standards as other public schools. cial attention that needed it. itations on student eligibility. We cur- And charter schools shouldn’t be al- You may say: Well, that makes so rently have 40 charter schools oper- lowed to pick and choose; they should much common sense. Why aren’t teach- ating in Tennessee—25 in Memphis and be required to enroll all eligible stu- ers able to do that in every public 11 in Nashville—with nearly 10,000 stu- dents. If more students want to come school in America? That is a very good dents attending these schools. Our than they have room for, there could question because, in a way, every one First to the Top plan—Tennessee won be some fair method for choosing the of our 100,000 public schools in America the President’s Race to the Top plan students, such as a lottery. That makes should be a charter school in the sense for education—included $14 million to a very good case. If charter schools are that the real definition of a charter expand high-performing charter so popular that more families want school is one that gives teachers the schools. The Achievement School Dis- their children to go to them, then we freedom to use their own good sense trict, which Governor Bill Haslam cre- need even more charter schools. and judgment with the children whom ated, has approved three charter opera- I am happy to come to the floor parents choose to send to that school. tors to turn around priority schools today to praise the teachers and the

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.023 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3003 innovators, Presidents of both parties, subsidized loans has remained un- formed what is known as a ‘subchapter S,’ including President Obama and his changed at $23,000 for the last 20 years. corporation with himself as the sole share- Secretary of Education, Arne Duncan, There are many causes that are accel- holder. Instead of taking his $26.9 million as who have strongly supported charter erating tuition, but the amount of earnings directly in the following four years, he paid himself a salary of $360,000 a year and schools, just as President Bush and available, accessible subsidized Federal took the rest as corporate dividends. President Clinton and the first Presi- loans for students has remained un- dent Bush did. changed for 20 years. But increasing Obviously at a much lower tax rate This is a movement that has broad the cost of these loans by doubling the but also avoiding payroll taxes. bipartisan support. It has grown from a interest rate will certainly make col- That is what we are trying to close handful of schools in Minnesota 20 lege more expensive for families and here. I think it ought to be closed in years ago to 5 percent of all of our pub- for students. fairness anyway, but the added benefit lic schools in the country today. What We need to address college costs, but is that we are able, by closing this we have found is that when you give having the Federal Government double loophole, to prevent the doubling of the teachers more freedom to use good the interest it charges for students, interest rate on student loans. judgment and when you give parents particularly the low- and moderate-in- This is a loophole that should be more choices of schools, good things come students, is not the solution. In closed. Again, this money will require happen. The charter school movement fact, it complicates the problem dra- people to pay directly to the Social Se- is proving that. This is a week to sa- matically. curity trust fund and Medicare trust lute their hard work and to hope that My colleagues on the other side of fund these funds which otherwise were over the next year, 5 years, 10 years, the aisle say they want to stop this avoided through subchapter S, so it more and more public schools become from happening. Governor Romney, the doesn’t weaken Social Security but it charter schools, where teachers are presumptive Presidential nominee, allows us, through the scoring mecha- free to exercise their judgment and says he wants to stop this from hap- nism, to prevent doubling of the inter- parents are free to choose the schools pening. Yet they are blocking us from est rate on subsidized loans. It is a win- their children attend. even moving forward procedurally so win proposition. Madam President, I yield the floor. we can debate these things, so they What they propose is going after the The ACTING PRESIDENT pro tem- could offer their proposals to pay for preventive care fund that was part of pore. The Senator from Rhode Island. what we agree needs to be done, to stop health reform. It seems to me it is sort Mr. REED. Madam President, in less the interest rate from doubling. They of an unfortunate pitting of one pro- than 2 months—53 days—the interest are blocking debate because they gram that benefits middle-income fam- rate on subsidized student loans will refuse as much on an ideological as on ilies versus another program that po- double to 6.8 percent unless Congress a practical basis to change the Tax tentially benefits all, but particularly acts. If the rate on subsidized Stafford Code and to close a loophole that is middle-class families. Frankly, I think loans is allowed to rise, as many as 7.4 egregious and should be closed in order there is another concept here which we million students across the Nation, in- to allow us to help middle-income fam- all agree about in theory—if we do not cluding approximately 43,000 students ilies. I think they have taken this enhance prevention opportunities, the in Rhode Island, will pay about $1,000 pledge with respect to no new taxes to cost of health care will be going up and more for each year that they borrow, a degree that defeats a practical, prag- up. What is unsustainable now will be- matic solution to a problem that they and that is on top of already signifi- come more unsustainable. It is not an know has to be solved. It has to be cant debt. appropriate way to deal with this issue. Some have argued, even while claim- solved before July 1. At a minimum, I hope we can at least This decision is fairly clear. It is a ing to support keeping interest rates get to a serious debate about this. If choice between allowing young people low, that the increase would not be a that is the proposal that Republicans to get a college degree or fealty, to a have, let’s get it on the table, let’s significant financial burden. Students pledge to never, ever raise anything and families beg to disagree. This take a vote. Let’s take a vote whether that Grover Norquist says is remotely you want to close loopholes for very would be a significant impediment to connected to a tax. It is that simple. completing their education. For young- specialized, very wealthy lobbyists and Unfortunately, that simplicity is un- lawyers and professionals, or do you er students starting their education, dercutting the hopes and dreams of for those seeking educational opportu- want to impact potential savings on thousands of American students, and health care through prevention. nities for job transition in midlife, that is what it is coming down to. those opportunities would be frustrated I think and hope we can come to a bi- One of the other ironies in this de- partisan agreement. The clock is tick- also. Right now students and their bate is what we propose to do. Closing ing. The time to act is now. Students families are sitting around the kitchen the subchapter S loophole for high- and families are counting on us to do table making tough decisions about wage earners in professional endeavors the right thing and fix this problem. next year and whether they can afford is also something that has long been I yield the floor. to go to school if interest rates double. criticized by conservatives. In the 2004 The ACTING PRESIDENT pro tem- One Rhode Island mother wrote me: Presidential campaign, the late con- pore. The Senator from Tennessee. Please do not raise the interest rates on servative columnist Robert Novak de- Mr. ALEXANDER. Madam President, student loans. My son will be in his last year scribed the subchapter S loophole as I enjoyed listening to the Senator from . . . I cannot afford to pay any more and fear ‘‘one of the last loopholes left in the that he will not be able to graduate and still Rhode Island, as I always do. His pas- Internal Revenue Service Code, and it have all the loans to pay back. is a big one.’’ I don’t think anyone sion for education is always on his So in addition to frustrating edu- would accuse the late Robert Novak as sleeve and always front and center and cational advancement, it could leave being anything but staunchly conserv- I admire him for that. many students across the country with ative in all his views. There are a couple of things I wish to lots of debt and no degree. The Wall Street Journal, calling out make clear. If you are a student and Hundreds of thousands of young peo- former Senator John Edwards for his you already have a student loan, what ple, parents, educators, and members of use of this loophole in 2004, called it ‘‘a we are talking about has nothing to do the faith community and other com- clever tax dodge.’’ with your loan. In other words, your munity leaders have come to us with Again we have a clever tax dodge pit- rate on that loan is not going up. What one simple request: Don’t double the ted against helping students go to col- we are talking about only affects new rate. lege. I think helping students go to col- loans. So before you think about not Some on the other side have argued lege should win. going to college next year because of that low-cost Federal loans have con- In fact, the Wall Street Journal edi- all this talk about student loan rates tributed to rising college costs and in- torial points out how in practice this going up, that is not a problem. We are creased student debt. This does not loophole is used. In their words: only talking about new loans. make sense. The maximum amount un- While making his fortune as a trial lawyer Second, for 60 percent of the students dergraduate students can borrow in [referring to Senator Edwards] in 1995, he who get new loans, we are not talking

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.024 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3004 CONGRESSIONAL RECORD — SENATE May 9, 2012 about you either. So you don’t have to est. We now want to take that profit loophole—one that benefits the worry about student loan rates going from overcharging students and give it wealthiest Americans; it has been criti- up. back to students. That is the way to cized by the Wall Street Journal, criti- Third, for those of you about whom pay for extending the 3.4 percent inter- cized by Robert Novak, the late col- we are talking, the 40 percent who have est rate that we are talking about for umnist—or practically going in and these subsidized undergraduate student another year. targeting prevention programs. I think loans, what we are talking about sav- We are in agreement on this. Repub- we conceptually agree if we don’t get a ing you is $7 a month in interest pay- licans as well as Democrats, Governor handle on prevention of diabetes, of ments over the next 10 years. Now $7 a Romney as well as President Obama, cancer, of diseases that are costing us month can add up, which is why Gov- say keep the 3.4 percent rate at 3.4 per- billions of dollars, then our task to ernor Romney as well as President cent for another year. Students should deal with health care will be im- Obama, Republicans as well as Demo- know that it does not affect anybody mensely more difficult. It is very clear. crats, wants to keep the interest rate who has a loan today and that it will What is also very clear is, I think, at the rate it is now for new loans, 3.4 save you $7 a month for a new sub- procedurally the answer is quite percent, for another year. But it is $7 a sidized loan. We want to do that. But straightforward. Let’s get on to the month in savings. It is important to the way we want to pay for it is by giv- bill. Let us go ahead and put these two know that. ing back the money that the other side different proposals on the floor and It is also important to know that of the aisle took from you to help pay take a vote. I hope the proposal to there is an easy way to get this done. for the health care bill. That is the close the loophole would pass. But if it The House of Representatives has al- right way to do it, instead of the typ- did not, at least we would be in a posi- ready passed a bill that would keep the ical reaction we often hear from the tion of preventing the doubling of in- interest rate at 3.4 percent for these 40 other side, which is we have something terest rates on student loans. percent of new loans for one more year. we want to do so we will simply raise With great respect to the Senator All the majority leader has to do is taxes on people and businesses creating from Tennessee, I hope we can move bring up the House-passed bill and jobs in the middle of a recession. forward, have a vote on the different enact it here in the Senate. In other I yield the floor. proposals to pay for it, and then move words, we agree on extending the inter- The ACTING PRESIDENT pro tem- forward and let people know that their est rate. We only have a difference of pore. The Senator from Rhode Island. rates will not be doubled. opinion about how to pay for it. Mr. REED. I have the utmost respect The PRESIDING OFFICER (Mr. I have offered an alternative sup- for the Senator from Tennessee. No one FRANKEN). The Senator from Oregon. ported by many Republicans, which is is as knowledgeable in education pro- Mr. WYDEN. Mr. President, I strong- the same as the House bill, which sim- grams as he, the former Secretary of ly support this legislation, S. 2343, the ply says we want to keep the interest Education, and someone who has a Stop the Student Loan Interest Rate rate where it is for another year, 3.4 deep commitment to education, not Hike Act. I appreciate the leadership percent, and we want to do the logical only with respect to his remarks on particularly of Senator REED of Rhode thing to pay for it. We want to give charter schools but on education in all Island, who has been so eloquent on back to students the money that the ways. But he refers to what the House this subject. I also would note that government is taking from them to has done. The House, in the Ryan budg- Senator ALEXANDER and I have worked help pay for the new health care law. et, maintains this increase, this dou- together on a host of issues. I think he You may think: what in the world bling of the interest rate. They fore- brings great expertise to this discus- does the health care bill have to do saw, anticipated, and supported the in- sion as well. with student loans? That is what many crease to 6.8 percent. Only recently The bottom line for me is that mil- of us thought when the health care law have they apparently had a change of lions of young people are hurting right was being debated. Because, what our heart and decided that is not appro- now in America. They are up to their friends on the other side of the aisle priate. eyeballs in debt and they cannot find did during the health care law debate The other aspect I think is inter- good-paying jobs. was take over the whole student loan esting to note about the House is they For example, we have seen in our program and almost turn the U.S. Sec- have proposed significant reductions in home State, according to the Oregon retary of Education into the U.S. bank- tax rates and they have said they Employment Department, that the ing commissioner. He has the job of would pay for them by closing loop- overall unemployment rate last year making more than $100 billion in new holes. This is one of the most egregious was 9.4 percent but was 19 percent for student loans every year. Their idea loopholes that you can find and yet, of workers age 16 to 24. I also note we was the government can make these course, they will not use this to pay for have seen that the labor participation loans better than the banks. Our something which makes a great deal of for young people has declined as well. friends on the other side of the aisle sense—which they now agree there We have an enormous array of chal- said to the students: The banks are should be no doubling of the student lenges in front of us. The reason that overcharging you. We are going to take interest rate. this legislation, the Stop the Student it over and we will be doing you a The Senator is absolutely right, this Loan Interest Rate Hike Act, is so im- favor. doubling will not apply to loans that portant is that it allows us to achieve What did the Democrats do? They are outstanding. It applies to loans two important objectives. First, it puts took it over, but they didn’t do the stu- going forward. But if we establish the us in a position to hold the line on stu- dents a favor. According to the Con- principle which was embedded in the dent debt. If you are a sophomore in gressional Budget Office, there was $61 Ryan House budget, which I think was college, for example, and you have al- billion of savings from taking over the supported by most, if not all, of my ready incurred some debt and you want loan program, much of which was colleagues on the other side, that this to finish school, then you want to get money that the students should not rate is going to be doubled to 6.8 per- a degree in a field where you will get a have been paying. When the federal cent going forward, that is going to job that pays a good wage. Without government took it over, what did the have a significant impact on students this legislation you are going to incur Democrats do? They spent it on other who have years to go in college and on still more debt. So this legislation programs, all except for $10 billion, in- people who are contemplating going to ought to be supported because it holds cluding $8.7 billion helping to pay for college. So the $6 or $7 it may be per the line on debt, and by doing so it the new health care law. month becomes significant overall. helps us achieve a very important ob- The way the Congressional Budget Again, we can get into a discussion jective: to increase the opportunity for Office looks at it, $61 billion in savings about where does this money come young people to access higher edu- resulted from—and these are my from ultimately in terms of was it part cation across the country. And histori- words—the government borrowing of funds for health care, et cetera. But cally whether it has been through Pell money at 2.8 percent interest and loan- we are facing the choice today of help- grants or Stafford loans and the like, ing it to students at 6.8 percent inter- ing students and closing an egregious we’ve always said to young people, try

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.027 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3005 to get to college. Families sitting ing access to higher education. Paying So I see other colleagues waiting to around kitchen tables and in their liv- more, it seems, is also going to reduce speak, and I only urge colleagues to ing rooms have said this for years. the opportunity for students to buy a pass this legislation, S. 2343, to ensure Work hard in high school and try to bit more value out of their education that we don’t heap more debt onto the get into college. And I have supported, as we try to get them better informa- backs of students in college now and here in the Senate, policies that in- tion with respect to the value of spe- who might be reupping on those loans crease access to a good education. By cific degree programs at specific and wondering if they can afford it. holding the line on debt, we can take schools. This type of information is Then as we expand access, let’s look at steps to achieve an important part of now impossible to find. Suffice it to taking additional steps to ensure that higher education policy, and that is ex- say, these two judgments, both with re- our young people get more value for panding access to higher education. spect to the debt and the value of what their college education. The second benefit of this legislation, they have pursued in terms of their Senator RUBIO and I have teamed up in my view, is that by holding the line college degree, are going to color their on a bill that I think addresses that on debt we increase the opportunity for decisions for the rest of their lives. question, the Student Right To Know young people to get more value out of One of the students I met in Oregon Before You Go Act. Going to that next their education. The reason I bring this recently as I talked about this issue step and adding more value to a young up is because my sense is that future was interested in getting a medical de- person’s education when they are policy in the higher education field is gree. And as we have talked about armed with the facts requires that we going to be about marrying these two health care issues—which the Presi- lay the foundation of access to a good objectives. Let’s support this impor- dent of the Senate and I have both been education, which I think should be re- tant legislation, S. 2343, to expand ac- very interested in over the years—one quired when so many young people are cess, and use it as a foundation to of the questions he asked me was how hurting. move on to the next step of education was he going to be able to get a med- I went through the statistics, and it policy, which is to get more value out ical degree initially and what would requires that we pass S. 2343. of the education a young person pur- happen to him when he got out of med- I yield the floor. sues. ical school with all of this debt hang- The PRESIDING OFFICER. The Sen- The reason I feel that way is that all ing over his head. I didn’t want to chill ator from North Carolina. over my State I am going to high his enthusiasm, but we know that if a Mrs. HAGAN. Mr. President, I come schools and community colleges and young person comes out of medical to the floor today to also speak about talking with students who are thinking school with an enormous amount of preventing student loan interest rates about both of those principles, access debt, there is a pretty good chance at from doubling from 3.4 percent to 6.8 and value. some point they are going to have to percent. I am disappointed that par- For example, at Blue Mountain Com- pass some of that debt on to their pa- tisan gamesmanship is threatening the munity College in Pendleton I met a tients, which means we are going to see financial futures of students in North young man who is taking 20 credits at medical costs for a lot of people in our Carolina and around the country. school, working at Arby’s full time as country escalate still higher. In North Carolina we are very proud a manager, and he is already concerned So the fact that we have these debts of our 16 excellent public universities about the debt he is racking up. He and the fact that it is hard for young and 58 outstanding community col- said to me: As I get my education, how people to purchase value in their edu- leges. In addition, dozens of the best will I know that I have laid the ground- cation is going to have remarkable rip- private colleges and universities in the work for being able to get a good-pay- ples all through our country for years Nation also call North Carolina home. ing job? I told him, just as I am sug- and years ahead. Our excellence in higher education sets gesting to the Senate today, that I am I am going to close simply by way of North Carolina apart. going to support efforts to expand stu- saying this: We have seen young people Business owners I talked to routinely dent aid and make sure we hold down contribute to our economy. The Presi- told me that our highly educated and debt for young people. I described what dent of the Senate shares an interest highly skilled workforce is what at- we are dealing with on the floor of the with this Senator in technology. Tech- tracted their companies to North Caro- Senate. nology has been a big source of jobs in lina. There is no doubt that the I also told him I have introduced a States such as Minnesota and Oregon. strength of our economy going forward piece of legislation with my colleague This has been a real economic engine depends on the continued strength of on the other side of the aisle, MARCO for our country. Think about who our educational system. However, the RUBIO, called the Student Right To brought us Facebook and Google and cost of college continues to rise in Know Before You Go Act. This bill will Twitter and YouTube. A dispropor- North Carolina and across the country. make it possible for students all across tionate amount of the creative talent If Congress does not act before July 1, the country to get information about has been young people. more than 160,000 North Carolina stu- the expected average annual earnings So we must first take steps to hold dents will be saddled with an addi- after graduation, the rates of remedial the line on debt—and that is to pass tional $1,000 in student loan debt. enrollment for a particular field at a Senator HARKIN’s and Senator REID’s According to the project on student particular college, the average costs bill—so we don’t say to college sopho- debt, more than half of North Caro- both before and after financial aid, and mores and juniors, we don’t care if lina’s 300,000 students at 4-year colleges the prospects of a student earning a they rack up any more debt when we and universities borrowed money to good wage after achieving a particular know how much heartache it is going pay for their education. On average degree at a particular school. With this to bring to them. Then we can move on these students graduated with more legislation we lay the foundation for to the next step, which is empowering than $21,000 in debt. That debt has real what I think will be the education pol- students and families to be able to get consequences for our graduates and for icy of the future. the maximum amount of value from North Carolina’s economy. With this We will ensure that students have ac- their education. If we don’t take these debt to pay off, young entrepreneurs cess and ensure that they get more steps I think we will have let the coun- are less likely to take a chance start- value out of their education and get try down in this area at a crucial time. ing a small business. They are less more value out of the loans and other We understand that higher education likely to buy a new car, and they are debt that they have to pay back. And is one of the principal paths, if not the less likely to buy a home. This only the two go hand in hand. I ran into stu- best path, to success for many stu- hurts our economy. Keeping interest dents who were juniors, for example, at dents. It is not for every student, but rates low will go a long way to ensur- colleges in my State and already owe certainly for millions. And education ing that young people can afford their $60,000. Without this legislation, those has enabled many young people to con- student loan payments when they grad- juniors are probably going to reup for a tribute to technology which has been, uate. loan, and they are going to have to pay as I described, a real spark for our I recently heard from a freshman at more, and that has the effect of reduc- economy. UNC Charlotte about how concerned

VerDate Mar 15 2010 01:22 May 10, 2012 Jkt 019060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.029 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3006 CONGRESSIONAL RECORD — SENATE May 9, 2012 she already was about the debt she was allow us to keep these interest rates This past Tuesday I spoke at a lunch- piling up when she graduates in 4 low for college students in all of our eon that was put on by a foundation years. She cannot imagine what would States. that supports one of our community happen if interest rates double. Per- Members may disagree about the best colleges in New Mexico. It is clear we haps she would have to drop out alto- way to pay for keeping the rates at 3.4 have many students who are working gether. percent, but we need to go ahead and very hard to make ends meet and to A student at Western Carolina Uni- proceed to the legislation and pass leg- stay in school so they can obtain the versity recently wrote to me, while islation to accomplish this. If Senators skills they need to earn a good wage, to studying for finals, asking that we have different proposals, they can offer pursue a constructive career. There are please prevent a doubling of his stu- them. But by blocking debate, we, ob- many areas of our economy where dent loan interest rates. So in the viously, cannot get to a solution of this these types of trained workers are midst of preparing for final exams, this problem. needed. young man was worrying about the The Democrats have proposed to pay One area which is obvious in my final bill that he will receive after for the legislation by closing a tax State and nationwide is in health care. graduating. He said doubling the Staf- loophole that people use to avoid pay- We need to train more nurses. One sta- ford loan interest rate would severely ing Social Security and Medicare tistic used in this talk last Tuesday hurt his ability to continue his edu- taxes. That is the so-called S corpora- was that over the next 8 years, between cation. He wants to study cell biology. tion payroll tax loophole. This proposal now and 2020, we are going to have to In a global 21st-century economy, the would close the loophole for S corpora- add 700,000 more nurses to the health sciences are exactly the types of fields tions for which 75 percent of the cor- care field to meet the needs of the baby that we need our students to excel in poration’s income is attributable to boom generation. In addition to those so we can compete with China and the services of three or fewer share- 700,000, we are going to have to hire an other foreign countries. We should be holders. additional 500,000 just to replace those This loophole allows, for example, an helping these young people succeed, who retire from the nursing profession. individual lawyer or a lobbyist to set not throwing up barriers that get in So we have 1.2 million nurses who are up an S corporation to make millions the way. going to have to be hired in this coun- of dollars in fees and to not pay payroll I am also hearing from parents. A try over the next 8 years. We need to taxes on nearly all that income. All he mom with three children e-mailed me train those people. has to do is give himself a cash divi- recently. Her oldest child will be start- There are many young people in this dend from the corporation instead of ing college in 2 years. She is already country who would like to have that paying himself wages. This is not a fair worried about the debt that her chil- training. They need student loans in arrangement. order to be able to cover the costs of dren will incur, and she certainly is re- To be clear, not all small businesses questing that we not double the inter- that training. That is why this is such are gaming the system in this way and an important debate. est rate on this debt. are not permitted to game the system Student loan debt has, for the first Our students deserve a fighting in this way. This loophole is not avail- time in our history, surpassed credit chance when they graduate. We able to businesses that are organized as card debt. Today this debt exceeds $1 shouldn’t put them thousands of dol- sole proprietorships or as partnerships. trillion. The average college graduate lars behind before they even reach the Those small businesses are paying leaves school with more than $25,000 in starting line. I will do my part to en- their fair share of taxes. loans. sure students in North Carolina have By contrast to this way of paying for According to the Bureau of Labor the chance to thrive after graduating. the continuation of the low interest on Statistics, college costs at State I urge my colleagues to join me in student loans, my Republican col- schools are rising and have been rising supporting this legislation that will leagues have opted for a very different at an alarming rate. These increased prevent student interest rate loans approach. They offset the cost by using costs far outpace the increased costs of from doubling. the Prevention and Public Health medical care. We are often giving I yield the floor and notice the ab- Fund. In my view, this is a misguided speeches on this Senate floor about the sence of a quorum. approach. The prevention fund is not a high increase, the excessive increase in The PRESIDING OFFICER. The slush fund, as it has been called by medical care costs. In fact, the cost of clerk will call the roll. many. Instead, it is a fund used to help college for many students is rising The bill clerk proceeded to call the reduce chronic disease such as diabetes even faster. The same thing can be said roll. and heart disease and to fund immuni- about gasoline. I see my colleagues Mr. BINGAMAN. Mr. President, I ask zation programs for children. This is a rush to the floor whenever the price of unanimous consent that the order for critical fund that is used to lower long- gasoline begins moving up—and with the quorum call be rescinded. term health costs and improve health good reason. It is a major burden on The PRESIDING OFFICER. Without outcomes. In my view, eliminating this U.S. families and Americans every- objection, it is so ordered. fund would simply increase health where. But the growth in these costs Mr. BINGAMAN. Mr. President, I un- risks and, ultimately, increase health pale in comparison to the growth we derstand we are debating the motion to care costs in this country. are seeing in the cost of education. proceed to S. 2343, the Stop the Stu- It is very clear Democrats and Re- The cost of tuition and fees has near- dent Loan Interest Rate Hike Act of publicans have a fundamental dif- ly sextupled since 1985. This is particu- 2012; is that correct? ference in our approach to how we larly troublesome for students from The PRESIDING OFFICER. That is should maintain student loan interest low-income families. correct. rates. However, as I said before, it is If we allow interest rates to double, Mr. BINGAMAN. Mr. President, I important we get to the bill, we pro- there are 7.4 million students nation- come to the floor to urge my col- ceed to vote for cloture on this bill, so wide who will see an increase in the leagues to vote to proceed to this im- we can discuss a path forward and con- cost of their student loans beginning portant legislation. I was disappointed sider amendments, if individual Sen- on the 1st of July. This has a direct im- to see many of my Republican col- ators wish to propose amendments. pact on students and on families be- leagues voted against allowing debate Preparing students for an education cause subsidized Stafford loans are and amendment on this legislation. I is essential for this country’s global need based, and they are typically de- have heard Senators from both sides of competitiveness. It is imperative we signed and focused on helping low- and the aisle acknowledge the need to pre- provide students the tools they need to moderate-income students. vent the July 1 rate increase on the succeed in this very fast changing In my State of New Mexico, about Stafford loans, the subsidized loans. So economy. This includes access to a 40,000—the specific number I have been it is difficult to understand their un- high-quality education, which will en- given is 39,875 but about 40,000 students willingness to even consider the bill able us to train the next generation of will see an increase in interest rates if and have a thoughtful debate and an Americans for jobs in high-technology we do not take action before the 1st of opportunity for amendment which will fields. July.

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.030 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3007 There are nearly 10,000 undergradu- concerns with. I do that as a doctor wasted. Among other things, we hear of ates at New Mexico State University who practiced medicine for 25 years, a health clinic using the funding to who will feel the effects of doubling took care of families in Wyoming, was spay and neuter pets. That is right, to rates and there are thousands of stu- involved with programs aimed at pre- spay and neuter pets. dents at the University of New Mexico vention of disease, early detention of The Minnesota Department of Health who will also see these increases. disease, and early treatment of disease. used $3.6 million to create at least four This is true of our smaller schools in I come to the floor to talk specifically regional food policy councils. And tax- New Mexico as well. The school I was about a portion of the health care law payers will be happy to learn—or will speaking at last week was Eastern New that has been discussed quite a bit in not be so happy to learn, of course— Mexico University in Roswell. There the last week or two on the Senate that their hard-earned money helped a are 222 students there who took out floor. county in California secure a ban on Stafford student loans during this cur- Congress has talked a lot about the new fast food restaurants. rent academic year. so-called Prevention and Public Health I have nothing against food policy The Department of Education esti- Fund included in the President’s health councils or spaying and neutering pets, mates that the average student would care law. When I looked at this health but when the U.S. Government is bor- pay as much as an additional $1,000 per care law initially—and I continue to do rowing approximately 40 cents out of year for their student loans unless we so—I asked the question, is this health every dollar that we spend, and when can keep this interest rate where it is. care law the best way to give patients we have a national debt in the area of Not only would incoming students be the care they need, from a doctor they $15 trillion, Washington should not affected, current students would also want, at a cost they can afford? I be- waste Americans’ hard-earned taxpayer feel the increase as they originate a lieve it has failed in so many ways to dollars. But we continue to do it, and new loan for the new academic year. do that, which is why I continue to this fund is a key example. The additional burden on our students work to try to repeal and replace this According to the nonpartisan CBO, would be substantial. health care law. eliminating the prevention fund would Students and families understand the When we get to the specifics of this save about $13.6 billion over the next 10 additional increase in costs. In the last Prevention and Public Health Fund, years. The fact is Congress already few weeks, I have been hearing from the President and Democrats have funds many prevention programs—pre- constituents all over my State asking claimed that the purpose of the fund vention programs with a proven track us to prevent this rate increase. was to promote wellness, prevent dis- record of success. Examples include One student from Gallup, NM, wrote ease, and protect against public health cancer prevention, tobacco prevention, to me saying: emergencies. All of us want to promote and a host of other programs. Give a break to the future of this country wellness, prevent disease, and protect Republicans have supported, and will and to the millions of students and families against public health emergencies. I continue to support, these critical pre- who need the relief from the debt of college. know how important those things are vention programs—cancer prevention, Another family from Albuquerque as a doctor. I know how important it is tobacco prevention, and working on wrote to me saying: to the point that for over two decades heart disease. However, the record is I write to urge you to vote so that student in Wyoming, I was medical director of clear that the so-called prevention fund loan interest rates DO NOT go up. In this re- a program called Wyoming Health in the health care law is wasteful and cession, more than ever, people of all ages Fairs, where we provided low-cost duplicative. It doesn’t help people stay are depending on education as a means of health care screenings to people all well or become well. gaining employment, and depending at least across the Cowboy State. It is a very Senator ALEXANDER from Tennessee in part on student loans. important program. People have con- introduced legislation that would So our constituents are asking us to tinued to write letters to me over the eliminate this slush fund and use the take action. By doing so we can con- decades about the fact that going to a savings to maintain student loan inter- tinue to provide students with stability health fair and learning about how to est rates at 3.4 percent. as they enter and complete their edu- prevent diseases, about early detection Under current law, students who re- cation. of problems, and how they feel either ceive subsidized Stafford student loans A high-quality educational system they or members of their families have will see rates increase shortly to 6.8 unleashes the potential of our stu- had their lives saved as a result of the percent, unless, of course, Congress dents. We need world-class problem services provided all throughout those acts. I am ready to act. Whether you solvers and thinkers if we are going to communities aimed at prevention and are Republican or Democrat, liberal or remain competitive. By investing in early detention of problems—tests such conservative, people generally agree American students, we can grow our as blood pressure, PSA tests, people that preventing this rate increase is an economy and build the middle class. learning about how to examine them- important priority. The difference is Let’s move ahead with consideration selves, how to get a mammogram—a how do we pay for it. of this bill. If a majority of Senators lost-cost or free mammogram—all of The majority leader wants to raise wish to change the way the bill is paid these things that are aimed at preven- taxes on small business owners. He for, then we can consider that amend- tion. These gave people the tools they says that is the better way forward. ment. But we should not refuse to needed to make decisions about their But there is a better way forward than allow the bill to come to the Senate health and their health care—not just raising taxes on the people who create floor for debate and amendment. for the patient but also to help their jobs, at a time when we have over 8- I yield the floor and suggest the ab- medical providers. percent unemployment and last sence of a quorum. Instead of helping Americans prevent month’s job numbers are abysmal. The PRESIDING OFFICER. The health problems, the President’s new Only 125,000 new jobs were created, but clerk will call the roll. law actually uses this so-called preven- 3 times that amount of people quit The legislative clerk proceeded to tion fund as a Washington slush fund. looking for jobs completely. For every call the roll. In fact, the new health law provided one new job, three people quit looking Mr. BARRASSO. Mr. President, I ask about $15 billion for this fund from 2010 for jobs at all. To raise taxes on the unanimous consent that the order for to 2019, and then beyond that about $2 people who are creating jobs in this the quorum call be rescinded. billion every year in annual appropria- country is the wrong way to go. The PRESIDING OFFICER. Without tion of funds to go toward this same Senator ALEXANDER’s proposal stops objection, it is so ordered. slush fund—$2 billion a year forever. the rate increase by eliminating this A SECOND OPINION Who will control the fund? The Sec- prevention slush fund. His bill uses the Mr. BARRASSO. Mr. President, I retary of Health and Human Services. rest of the funding for deficit reduc- come to the floor today, as I have week Even though this law has only been in tion. I have cosponsored that legisla- after week since the health care law place for 2 years, we have already wit- tion. has been passed, with a doctor’s second nessed how the Obama administration I think it is also important to know opinion about the law that I have great officials have allowed this money to be that the President has already agreed

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.032 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3008 CONGRESSIONAL RECORD — SENATE May 9, 2012 to use his slush fund to offset other The PRESIDING OFFICER. We are letter from their insurance company spending. In September of 2011, the on a motion to proceed to S. 2343. saying: Gee, sorry to hear you have ter- President proposed reducing the slush Mr. KERRY. Mr. President, I ask minal cancer, but you are not cov- fund by $3.5 billion. In February, part unanimous consent to be permitted to ered—and that is what happened all the of the payroll tax cut signed by the proceed as in morning business. time in America—that would start hap- President contained a $4.5 billion cut The PRESIDING OFFICER. Without pening again. People were thrown off from his slush fund. Finally, in March, objection, it is so ordered. their policies that they had been pay- the President’s 2013 budget proposed HEALTH CARE ing for for years, and all of a sudden cutting the fund by another $5 billion. Mr. KERRY. Mr. President, later I they had no coverage. But they do not It is ironic that the President of the want to speak for a few minutes about address that. United States and Washington Demo- our colleague Senator LUGAR. There is another issue: preexisting crats now oppose using money from First, I want to comment about what conditions. Again and again and again, their so-called prevention slush fund. If the Senator from Wyoming was saying people would be denied the ability to the White House and Democrats in on the health bill. buy health care coverage because they Congress want to ensure that student Very quickly, I could not disagree had a preexisting condition of some loan rates stay low, they will cut this more with the Senator from Wyoming kind. So if 10 years ago someone had a wasteful program and use the money to in his comments with respect to the cancer, even if they were cured of their help the next generation of Americans. health care bill. This morning we had a cancer, the insurance company could We do know that young people com- meeting with Secretary Kathleen either refuse them or charge them a ing out of college today are, on aver- Sebelius, who was outlining to us all of higher set of premiums. People were age, having a debt of about $25,000; and the gains we are making with respect denied coverage—they just didn’t get whether the interest rate is zero or 3.4 to health care in America as a result of it. Women who were pregnant and were percent or 6.8 percent, they are still the legislation. applying for insurance heard: Oh, coming out with a huge debt, at a time What is interesting is that our col- sorry, that is a preexisting condition. when we know 53 percent of the people leagues who keep coming to the floor You are pregnant. We are not going to coming out of school can’t find a job or and saying repeal the health care bill cover that. cannot find a job consistent with their never offer alternatives to Americans. I So in America we drove people into level of education. We also read that 40 hope Americans who are buying into poverty for a long period of time. They percent are going back home to live; this notion that somehow the health had to sell their homes or sell down ev- some are returning home instead of care bill doesn’t serve them because erything they had to become impover- going out into the workplace. they are angry about one thing or an- ished in order to get to a point where It is time to focus on the economy, other will look at what the health care they could get some help. on getting people back to work, and it bill does because, in point of fact, if What about kids in school today? is time to agree that we need to keep you were to repeal the health care bill, Under the health care bill, up until the the interest rates low; that we ought to and they have no alternative to replace age of 26, a child can now be covered by pay for it with money that is there, it, here are some of the things that their parents’ program. It is not free, it which can easily be used. We should happen: One, you immediately add $2 has to be paid for, but they can be cov- not raise taxes on job creators at a trillion to the deficit of our Nation. ered by it. That would be eliminated. time when the country is in this sort of Bang, done deal. That goes right away So all of a sudden we would have a economic condition. on that. The health care bill is judged whole bunch of people who would be I continue to come to the floor week by the CBO to reduce the deficit. It has automatically eliminated and going after week to talk about findings in the specific savings in it. If you get rid of out fighting to get insurance in the health care law. Some things are unin- it, those savings go away and, bang, marketplace. tended consequences, and some things the deficit goes up. Let me tell you what else happens. are money tucked away for other pur- No. 2, 47 million to 50-some million There are a whole bunch of reforms to poses. It is hard for Americans to ever Americans who have no health care or the health care system that our friends forget NANCY PELOSI saying that first didn’t have it before the bill will return never talk about. Today Kathleen you have to pass the health care law to the status of having no health care. Sebelius, the Secretary of Health and before you get to find out what is in it. Now, does everybody in America Human Services, laid out for us the The more the American people find out think it is better to have 50-some mil- enormous gains we are making in what is in it, the less they like it—to lion Americans walking around with- Medicare fraud. We are beginning to the point that 67 percent of Americans out health care who, when they walk make huge savings for people. The av- feel that the health care law should be into a hospital—perhaps they get hit erage senior is now saving over $4,000 totally or at least partially found un- by a car or have an accident and go to on their health care bills because of constitutional, as the Supreme Court a hospital—receive care that everybody what has been put in place by the looks to make their ruling in the next is paying for but they are paying for it health care bill. There are a whole se- months ahead. in the most inefficient way possible? ries of things. I don’t have them all This is a health care law that, in my The burden is being paid for by people here at my disposal now because I opinion, is bad for patients, bad for who have the health care. It goes into wasn’t planning to talk about this providers—the nurses and doctors who their premiums. It isn’t shared by peo- when I came to the floor, but there are take care of the patients—and it is ter- ple buying their insurance and sharing a series of reforms about how we pay rible for the American taxpayers. This the risk of getting sick. So all of a sud- hospitals, bundling the payments to a is a time when we need to repeal and den, if you get rid of the health care hospital, requiring greater account- replace this health care law. Now there bill, we return America to the days ability from hospitals. I mean, don’t we is a way to use one of the provisions when millions of Americans had no want greater accountability from hos- within it to fund and make sure that care. And guess what happens when pitals? That will vanish. That will be we do not raise interest rates for the they have no care. They jam the emer- gone if we do away with the health students in this country, so they can gency rooms because that is the only care bill. get the education they need and, hope- place to get the care. The emergency We also have greater coordination of fully, find a job and not punish those room becomes the place of primary care for patients from the beginning of who have tried to provide jobs to these care. But my colleagues do not answer their private care through their admis- graduates. that question. They never deal with re- sions and into their discharges. What I yield the floor. ality. They deal with politics and ide- happens today is there is no coordina- The PRESIDING OFFICER (Mr. ology and they throw a lot of baloney tion of that care, and so a lot of people UDALL of New Mexico). The Senator at people. are discharged, and the readmission from Massachusetts is recognized. The fact is, if we were to get rid of rate is staggering because there isn’t Mr. KERRY. Mr. President, what is the health care bill, all those people the coordination between their post- the parliamentary situation? who used to get sick and would get a operative, postsurgery care and their

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.033 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3009 primary physicians and the hospitals. outcomes for the money we are spend- sured? What will they do to take care Now there are a number of different ing in the system, and there are a of all those medical institutions that pilot projects in place to help coordi- whole lot of reasons for that, but that are struggling to teach doctors for the nate that. is part of why this reform is so critical future? How are they going to hold Similarly, we are coordinating the to our country. those folks in a way that continues care of what are called dual eligibles— I could say a lot more about this, but medical education in our country and the people who are eligible for Medi- I am not going to say it now. Every so forth? They owe it to the Nation to care but also eligible for Medicaid. time we hear from people who are just answer those questions. That care has not been well coordi- talking now about how we have to get Mr. President, that concludes the nated, so we have huge duplication, rid of the health care bill, we have to portion of my remarks I wanted to enormous costs we don’t need, and the stand and make it clear to people why make in response to the Senator from result is a waste of money. All of that this bill is good. A lot of Americans Wyoming. is being eliminated and/or reduced to a have not heard enough about how this TRIBUTE TO SENATOR RICHARD LUGAR significant level. legislation works for them, works for Mr. President, I wish to take a few There are so many other examples. the country, and will improve our sys- moments to share a few thoughts, not Let me cite another one. The Senator tem. Is it the cure-all—no pun in- about the results of the election last talked about wanting to take money tended—of the health care system? No. night in Indiana per se, but I do wish to out of preventive medicine. Preventive I don’t pretend it is. We will have to do talk about the consequences for the medicine? We are told by the doctors, more. We will have to tweak it. But it Senate of the loss of Senator LUGAR as who are the experts and who deal with is a beginning step, with critical com- of next year and particularly for the diabetes, that if we had early screen- ponents that take 4 and 5 and 6 years Foreign Relations Committee. ing, which comes by having health care to put into place so that we can get the It is no secret that DICK LUGAR’s loss coverage, we could eliminate an enor- full measure of their impact. last night is going to be particularly mous amount—maybe as much as $100 I will say this. We have it in Massa- felt by all of us who have had the privi- billion—of surgery costs and dialysis chusetts. We have it now, and busi- lege of working with him on the Senate costs as a result of people not discov- nesses are not complaining. In fact, we Foreign Relations Committee, whether ering they have this ailment until it is have one of the best economies of any he was the chairman of the com- too late for treatment by the more ac- State in the country. I think our un- mittee—and I served under him when cessible and easier means. There are employment rate is now down around he was chairman—or whether as a some oral medications and other things 4.9, 5 percent, somewhere in that vicin- member of the committee and the people can take to deal with this dis- ity. So we have this program. We have ranking member, as he is now and as I ease, but they have to get there at the had it for a few years now, and 98.6 per- am now privileged to serve with him. early stage. If they get there too late, cent of the people in our State are cov- Whether we agreed with him or not, they wind up having to do amputations ered. It has been mandatory since the whether he had the gavel or he didn’t of limbs or the patient winds up on di- beginning, and it is working. It is be- have the gavel, DICK LUGAR had an ap- alysis, all of which is far more expen- ginning to bring down costs in the indi- proach to the Senate and to governing sive. vidual marketplace. The premiums that was always the same: He was seri- There are also pilot projects in the have gone down by something like 45, ous, he was thoughtful, and he refused health care bill for helping people re- 50 percent. to allow this march to an orthodoxy ceive care at home and not be forced So I think we have to look at facts, about ideology and partisan politics to into a higher priced care environment, as we do on a whole lot of issues here get in the way of what he thought was such as a nursing home or a longer facing this country today, rather than the responsibility of a Senator and, in- term care kind of environment. This continuing this silly talking past each deed, the need of the country to have allows them to receive care at home other, completely contrived, political, people come together and find the com- and be in the dignity of their own home ideological debate that is calculated to mon ground. He dug deeply into some and independent and, obviously, with win power and not calculated nec- of foreign policy’s most vexing issues, much less cost. All of those things essarily to serve the best interests of and his expertise on complicated issues would be wiped out by this notion that our Nation. I hope we are going to en- that were honed over 36 years really we are just going to get rid of this bill. gage on this over these next months, can’t be replicated. That is something What this whole notion is built on is and I look forward to defending this we are going to lose—the institutional the early negative branding—very ef- health care bill because I think the bill experience, the judgment, and the wis- fective negative branding—that took is good for America. I think this bill, dom of the approach on some of those place and was wrapped around the so- while it obviously needs some refine- issues, such as the constitutional ques- called death panels and the other ment, some changes, and some tweak- tions he would call into account when things, none of which are in this legis- ing here and there, has accomplished no one else would, the question of not lation. It is not in it. So this is polit- an enormous amount already and is on being stampeded by popular opinion ical. That is why they call it track to accomplish an enormous with respect to the use of force in one ObamaCare, not health care. They call amount going forward. instance or another. All of those are es- it ObamaCare to make it a pejorative I think the administration has a sential to making this institution live and to do their best to try to wrap it up much better story to tell about it than up to its full capacity. in the negativity of politics in our has been told, and I am glad the Presi- Already since last night’s news, we country today. And it is a tragedy be- dent has said he looks forward to going have been hearing again and again on cause it doesn’t do justice to the kind out and talking to the country about it some of the news shows and elsewhere of thinking that ought to go into and because I believe that as the country about the work of the Senator from In- did go into this bill in terms of how we learns more about it, in fact, they will diana on nuclear nonproliferation. It is do things that really create competi- say: Wow, that makes sense; that no secret his Nunn-Lugar efforts have tion in the marketplace and allow peo- seems like a pretty sensible thing to become almost shorthand for biparti- ple to get better health care. do. sanship in foreign policy, and they What is astonishing is that we spend For our opponents who want to just should be recognized. But I want to em- something like, I think, $15,000 per pa- get rid of the legislation, they have an phasize here and now that is not all tient in America. I think that is the absolute obligation to put the full deal Senator LUGAR contributed to this average cost. There are countries on the table about what they are going field of foreign policy. He is a leading spending half of that and a lot of coun- to do in return, and not just Medicare, expert on some of the urgent issues tries spending around $11,000 a patient with the Ryan proposal—which makes that are off the beaten path, from food that, I am sad to say, are getting bet- it more expensive for seniors and security and the eradication of hunger ter health outcomes than we get in the undoes Medicare as we know it, not worldwide, to his work with JOE BIDEN United States of America. The United just that part of it—but the whole of it. and then with me, I am privileged to States of America is not No. 1 in health How are they going to cover the unin- say, to change our relationship with

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It this thinking is that whatever is won today through division is usually lost tomorrow. that region—and to establishing what reminded me of the way you actually The relationships that are destroyed and the he called a ‘‘deeper, broader, long-term work in what is now sometimes, unfor- ill will that is created make subsequent strategic engagement’’ with Pakistan. tunately, sarcastically referred to as achievements that much more difficult. A 51 I am privileged to say, for me, the the world’s greatest deliberative body. percent mentality deepens cynicisms, sharp- personal journey with DICK LUGAR He deliberated and he helped us delib- ens political vendettas, and depletes the na- began before that, and I think it epito- erate. tional reserve of good will that is critical to mizes who he is and why he will be I thought it was one of the finer and our survival in hard times. missed. It has nothing to do with ide- prouder moments of the Senate in re- That is actually about as fundamen- ology. cent years. tally, philosophically, as conservative Back in 1980, shortly after I came I am confident DICK LUGAR’s record as one could ask for. I think every one here—I was elected in 1984, and I start- in our committee is going to be one of of us who have seen the difficulty of ed on the Foreign Relations Committee those which is remembered for a long the last few years of our politics, who in 1985. Right away, we began to work time. Sadly, last night it was remem- have been frustrated by the sheer in- together on the issue of the Phil- bered in the context of Senator Ful- ability of the institution to work, ippines, free and fair elections in the bright, who also came to lose a pri- would agree there is nothing liberal or Philippines. I had traveled over there a mary in the end and paid a high price conservative or moderate about what number of times as a freshman Sen- for his concern about global affairs and DICK said. It is just common sense ator. I had met with Ferdinand Marcos. his involvement with those issues. But about how human nature works, about I was concerned about the torture tak- I think he is also remembered signifi- how people work. It seems to me we ing place and the political prisoners cantly for the enormous legacy he built would do well to get back in touch. and other violations of rights. Yet we about American foreign policy and how I often hear people talk about how we were sort of aiding them notwith- to make our country stronger. need to change the rules here in order standing our values and our standards. DICK LUGAR does that, and I think he to get something done. Actually, we Well, DICK LUGAR joined with me in has made it clear—there is no doubt in don’t. These are the same rules we op- that effort. He didn’t have any reason the mind of anybody on our side of the erated with when Everett Dirksen was to join with a freshly minted Senator, aisle—that DICK LUGAR is a conserv- here, when Bob Dole was leader, George wet behind the ears, but he did. To- ative and his votes through the years Mitchell was leader. But we got things gether we sort of became a team that have shown that. He is a proud Repub- done. started to focus on the Philippines to lican. In the 1990s, we balanced the budget figure out how we could hold Marcos But I think probably because he of our Nation four times in a row with- accountable. He was serious and he was served as a mayor before he came here, out a constitutional amendment. It fair-minded, and I saw firsthand during he applied what we call the LaGuardia didn’t take a piece of paper to tell us to our trip to the Philippines which we rule to foreign policy—which is the do it or new words written in the Con- made at the time of the election—after rule that Theodore LaGuardia applied stitution. It took the common sense we had done a whole lot of groundwork to doing things in New York. It didn’t and courage of people on the floor of to set up an accountability system for matter whether you were a Republican the Senate to do what was right. We that election—that he had a very per- or Democrat as long as the streets got don’t have to change the rules. We sonal and special understanding of cleaned and the potholes got filled, and have to change the thinking—or what the United States meant to the they didn’t have any labels on them. change the people who don’t want to do rest of the world with respect to our That is pretty much the way foreign it. values. That cause animated this man policies ought to be. But every great moment in this great whom we all know is dignified and re- It used to be under Arthur Vanden- institution, when people look back at served and humble but who proudly berg that we said that politics ends at the history with pride and point to the came back and recounted with some the water’s edge, and we do what is in Missouri Compromise or point to animation to President Reagan the dif- the best interests of our country. Only Henry Clay or Daniel Webster or all ference that the United States of in the last years in the Senate have I these great Senators—or Ted Kennedy America makes when it gives voice to seen a complete diversion from that more recently and others on the other people’s aspirations for freedom—and, where, unfortunately—as has been true side of the aisle—when they do that, in this case particularly, the people of on both sides—politics has entered into they are talking about people who op- the Philippines. choices people have made with respect erated by the same rules but found the The fact is it was that discussion to major issues of conflict, potential common ground because they had the with Ronald Reagan and the results war and peace, and interests of the se- intelligence and willpower to put the that came out of the accountability in curity of our country. country and its interests ahead of ev- that election that forced Ferdinand So about 4 years ago this time, DICK erything else. Marcos to leave and we saw Cory LUGAR received the Paul Douglas So that is what DICK LUGAR’s loss Aquino come to power and the Phil- Award just off the Senate floor over in last night means to us. I don’t know ippines move back into genuine democ- the Mansfield Room, and he summed who will replace him. We certainly racy. up his approach to the Senate. I think know the cross-currents of some of the I saw the same commitment with after last night it is important for all campaign, and we certainly know what Senator LUGAR a number of times over of our colleagues to be mindful of his Senator LUGAR himself chose to say the years, but never more so than 2 words and to think about them as we last night about his opponent’s quest years ago when we worked together on go forward in these next 6, 7, 8 months. for more partisanship, not less. the New START treaty. His wisdom DICK argued that bipartisanship isn’t So the alarm bells have been sound- and his patience was invaluable in lay- an end to itself, and it is sometimes ed. My prayer is that this election year ing out the case, particularly in build- mistaken for centrism and compromise is going to help purge this country of ing support across the aisle so we could when, in fact, it is the way he called this incredible waste of opportunity find the path to 71 votes. being a constructive public servant. It that we are living through. I said then, and I say it again today, is the way a constructive public serv- This Congress isn’t over. For those of given the bitter, divisive, partisan, ant approaches his or her job—with us who were here and remember 1996, it continual political squabbling that self-reflection, discipline, and faith in bears repeating that even in Presi- seems to dominate life in the city the goodwill of others. dential years the Congress can actually today, 71 votes is probably the equiva- He said: defy conventional wisdom and get some lent of the 98 votes we used to get on Particularly destructive is the things done. That is why I know that those kinds of efforts. So I am grateful misperception in some quarters that gov- DICK LUGAR is going to finish out his

VerDate Mar 15 2010 03:35 May 10, 2012 Jkt 019060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.036 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3011 sixth term in the Senate with the same departure. We think back on some of on the phone a couple of times since determination and effectiveness that these great people. the stroke. He has been actively en- has marked every year of his service. John Chafee. John Chafee and DICK gaged mentally in everything we have He is going to have a lot more con- LUGAR were soulmates in terms of done since the stroke occurred. But tributions to this institution that he their view on the Republican side of every day he tells me that he spends reveres and that respects him so enor- the aisle about how to work across the time on a treadmill, miles and miles mously. aisle to get things done. walking on a treadmill so he will be The PRESIDING OFFICER. The Sen- A mutual friend—and I know Senator able to come back. I told him we are on ator from Illinois. KERRY’s close personal friend—Senator a different treadmill here and I am sure Mr. DURBIN. Mr. President, first I Kennedy. Senator Kennedy’s success he wants to get back on it with us in thank my colleague and friend, Sen- has always reached across the aisle. I the Senate. ator KERRY, chairman of the Senate noticed that. Sometimes to the frustra- He will be back. He said something I Foreign Relations Committee, for com- tion of those on the Democratic side think we all ought to remember. He ing to the Senate floor and speaking who said: We have enough votes, Ted. said he asked the staff to count the about our mutual friend and colleague, We don’t have to do this. He would steps from where he would park outside Senator DICK LUGAR, who serves as the reach across. the Senate Chamber up to the Senate ranking Republican on the Senate For- Of Bob Byrd, who used to sit right Chamber. They counted the steps and eign Relations Committee. next to where Senator KERRY is sitting they told him 45 steps and he would be I am a newcomer to that committee, now, we think: What will the Senate be back in the Senate. He said the day is but I am not a newcomer to my knowl- like without these great lions? Well, going to come, and I am sure it will be edge of DICK LUGAR—who preceded my the Senate will go on. But the question soon, when he will walk those steps, arrival in the Senate 16 years ago when is, Will we have learned from their ex- and there will be many, myself in- he was well known throughout the ample? Will we take their lives and cluded, from both sides of the aisle, Midwest for his extraordinary service their careers to build on to make this cheering his return to the Senate. For as mayor of Indianapolis, where he did a better place or, as some have said, MARK, his family, his doctors, his med- something that was miraculous—he are we going to succumb to the temp- ical staff, and all: Thank you for this combined and made more efficient tation of just making this place more battle. Thank you for your efforts on local units of government, and I think partisan, more hidebound, more dedi- behalf of our State. We look forward to the rebirth of Indianapolis is attrib- cated to obstruction than moving for- your early return. uted to those early steps by DICK ward? MARK and I have a joint town meet- LUGAR. I know that DICK LUGAR in the re- ing, Republican and Democratic, every My wife Loretta and I came to know maining months is going to be an ex- Thursday morning. The people sit DICK and Char personally through the traordinary servant to the people of In- there politely as we discuss issues and Aspen Institute, which is an effort that diana and the Nation as he has been love it when we disagree because we do I think we need to encourage where throughout his career, and I look for- it without getting angry with one an- members of both political parties, ward to seeing him back on the Senate other. He will be back soon, not only at House and Senate, come together to floor working, as he will, for the re- those meetings but also covering the discuss foreign policy issues—no lobby- mainder of his term. But it is a loss. It State of Illinois as an effective, en- ists, no special interests. DICK LUGAR is a loss to the Senate that he is leav- gaged Senator. was there and always a major contrib- ing, and it is a sad day on both sides of Mr. President, I ask unanimous con- utor when it came to issues of impor- the aisle when DICK LUGAR won’t be sent that the time from 2 p.m. until 5 tance. part of the Senate in person. p.m. be equally divided and controlled Before I arrived in the Senate—while TRIBUTE TO SENATOR MARK KIRK between the two leaders or their des- Senator KERRY was still here—he I would like to speak about another ignees, and that all quorum calls in teamed up with Senator Sam Nunn to Republican Senator while I have the that period also be equally divided. deal with an issue which related lit- floor: my colleague, MARK KIRK. Some The PRESIDING OFFICER. Without erally to the peace and security of the of you have seen the video. objection, it is so ordered. world. MARK had a stroke in January. He The Senator from Maryland is recog- What would happen, as the Soviet wrote about it in this morning’s Chi- nized. Union crumbled, to all of those nuclear cago Tribune. He is 52 years of age, the Mr. CARDIN. Mr. President, I take weapons? Would they fall into the picture of health, a Navy Reserve offi- this time to urge my colleagues to wrong hands? Would they fall into dis- cer and a U.S. Senator from Illinois, allow us to move forward in the consid- repair? And what could we do about it? actively engaged in our State, going eration of the Stop the Student Loan Sam Nunn and DICK LUGAR stepped up back and forth, county to county, city Interest Rate Hike Act so we can allow and said: We are going to work to- to city. We work together on so many the interest rate on student loans to gether on a bipartisan basis to deal things. Then on that fateful day he was remain at its current level rather than with them. stricken, and with this stroke he suf- doubling, which will happen on July 1, Time and time again throughout his fered some very serious damage. unless we take action. I come to the career DICK LUGAR has focused on I was a little bit disturbed when his floor to express the views of many issues of strategic importance to the physician/surgeon came out and said, Marylanders with whom I have talked United States and our security. I can’t ‘‘Well, here is what we can expect.’’ about the cost of higher education. We agree with Senator KERRY more. He And I am not going to go through the cannot allow the interest costs to go looked for a bipartisan approach to so graphic details, but they were all so- up. It will affect 7 million students and many things. We always knew he was a bering to think that he would be lim- their families. Hoosier conservative. You weren’t ited in any way by the stroke. I was We already have too much college going to push over anything when it upset because I thought: He doesn’t debt that families have to incur as a came to DICK LUGAR. He was strong in know MARK KIRK. That isn’t going to result of the cost of a college edu- his values, but he always listened and happen. MARK is going to fight back. cation. We are not competitive with he was always a gentleman. He is going to be back, and he is going the rest of the world. We look at coun- What a disappointment last night. I to defy the odds in terms of stroke vic- tries with whom we compete and we know Senator KERRY feels, as I do, that tims. look at the cost of higher education in once you have been in this Chamber for Yesterday he released a video. It is their country compared with what our a few years, you kind of reflect on inspiring. I hope everyone gets a students have to endure, and we start those lions of the Senate who have chance to see it—I am sure it is readily off behind because of the enormous come and gone, some because of the de- available—showing him going through cost to a family to afford a college edu- cision of the electorate and some be- rehab, showing the efforts he is making cation for their children. cause of passage of time and then fate- to come back to the Senate. MARK We know how important it is. You ful decisions that ended up with their called me earlier this week. We talked need to have a college degree in order

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.038 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3012 CONGRESSIONAL RECORD — SENATE May 9, 2012 to be competitive in many fields today. Let me talk a little bit about my ex- Georgetown University’s medical That number of fields is increasing periences with Marylanders. I have school. Attending will require her to every day. Let me tell you, we have traveled the State of Maryland. I have take out a significant amount in stu- crossed the $1 trillion mark in debt talked to a lot of our college students. dent loans. That is the fact for most held by families in order to afford a I will generally talk about a lot of dif- American families, their children will college education. Two-thirds of that ferent subjects and then ask what is on have to take out loans if they are going debt is held by people who are under 30 their mind. They will talk about the to be able to reach their dreams. She years of age. Here they are, trying to cost of college education. They will knows how much these are going to start out in life, trying to have a fam- talk about the fact that we need more cost, but she says compounding this ily, trying to buy a home, and they grants. They talk about the fact that with increased interest rates hinders have this large amount of debt. we need more affordable loans. They her ability to pursue her dream. She College debt now exceeds credit card certainly will tell me if you are going has the will and the passion to become debt in America. It is not unusual for a to increase the interest costs on their an excellent physician and her aspira- person graduating from a college to loans, it is going to have a major im- tions should not rest on what we do have $20,000, $30,000, $40,000, $50,000, pact on their ability to stay in college, here in making it more economically $100,000 in debt, and even higher. If we on their ability to follow the career difficult for her to be able to afford do not act by July 1, the interest costs choices that they want to in life. that education. That will not only ben- will add thousands of dollars to that al- Let me share with my colleagues the efit her but will benefit our commu- ready burdensome amount. stories of two Marylanders who have nity. The cost of a college education in contacted my office, who have con- We are talking about our children. America is too expensive. If we want to tacted me in the last few days to tell We are talking about whether our chil- be competitive, we have to get the cost me that this bill we are hopefully going dren are going to be able to pursue the of a college education down. The Presi- to be able to consider will have a direct American dream, whether they are dent in his State of the Union Address impact on their decisions. going to have the education they need talked about ways in which we can en- Katherine Eames is a 22-year-old sin- to help themselves and help our coun- courage colleges and universities to be gle mother, with a 4-year-old son try. We are talking about America’s fu- more affordable for the American pub- Jayden. Katherine has decided to go ture. This is about whether this Nation lic. But one thing we can do is to make back to college to pursue her nursing is going to be able to continue to lead sure that the cost of borrowing is not degree and currently attends Hagers- the world in economic growth. We need increased. That is why it is particu- town Community College in Hagers- to take up the Stop The Student Loan larly important that we pass this legis- town, MD. She is attempting to make a lation. Rate Hike Act. It is affecting family decisions as to better future for herself and for her Let me explain. It is subject to a fili- what schools children will attend be- son. She is attempting—she is going to buster. Yes, it is a filibuster. We tried cause of the high cost. We are just be a full-time student. Katherine also to say let’s at least get on the bill, turning our economy around, starting works part time at a minimum wage which required 60 votes in order to be to make our recovery, and now families job, all while juggling her responsibil- able to break this filibuster. We came are struggling to figure out how they ities as a single mother. Student loans up short. I hope the majority leader are going to be able to afford a college are necessary. She needs to take out will schedule another vote shortly and education. We need to reduce the costs, student loans. That is the only way she I hope my colleagues on both sides of not increase the costs, to families. We is able to afford her college. She has the aisle will remember what this need a trained workforce. We need to student loans in order to be able to means for the future of this country. be competitive internationally. stay afloat and realize her dream of The stories I related with regard to Let me tell you what else it is affect- making a better future for herself and Katherine Eames or Ariana Fisher are ing. We have some very talented people her son. If student loan interest rates not unique. I am certain you would who are graduating from college and were to double, Katherine would be in find similar examples in New Mexico or they want to go into the field where a financial turmoil and her future aspi- any other State in this country. You they are gifted, where they can make a rations in jeopardy. Let me quote from are going to find similar examples of real contribution to our communities, Katherine. This is what she says. I people who desperately need us to act to our society, to make a difference, to think it is so telling. so college costs do not increase. Then answer that call of community service. I want to be able to close my eyes and see let’s work together to bring down the That is what they want to do. But a bright future for my family and my son. costs of college education. College and when they are saddled with this much However, if these interest rates increase, all postsecondary education are a vital debt and if it becomes more expensive I see from this point forward is a hole I don’t gateway to helping American students think I’ll ever be able to climb out of. to pay off that debt, they have to make around the country to achieve the a pragmatic decision about their career I know some of my colleagues say we American dream. path rather than following where they are talking about another 3-percent in- We need to stand for our Nation’s fu- can make the greatest contribution to terest charge, people will be able to af- ture. We cannot allow higher education society. That is how these large debts ford it. But let me tell you about the to become unaffordable for millions of and the cost of paying off that debt are real world, the world of Katherine Americans who have the desire and affecting our country. Eames. That is the real world. That is ability to learn and succeed. Let’s end You might have a great researcher people making career decisions now as the filibuster. Let’s work together as who can find the answer to one of our to whether they are going to follow Democrats and Republicans. Let’s keep diseases, how we can keep a healthier their dream; whether she will become a America’s future in mind, let’s keep society, a person who may want to go nurse, be able to help her community, the American dream in mind, let’s into research, but they know what the help her family, help herself. If we do allow Americans to reach that dream return of research will be when trying not make college affordable or if we by making college education afford- to pay off their college loans. If we do add additional costs to it, we are going able. Let’s pass the legislation that is not act by July 1, that will be even to add more people to this process. As currently pending that would stop the larger. That is what we are confronted a society, America’s competitiveness increase in the interest rates on college with. That is why it is so urgent, that will suffer as a result. We need to do loans. is why we need to be considering this better. We need to pass this legislation Mr. President, I suggest the absence legislation rather than be stuck in this to help the Katherine Eameses who are of a quorum. filibuster. out there. The PRESIDING OFFICER. The I urge my colleague to move forward. Let me talk about another Mary- clerk will call the roll. Let’s do what the Senate should do— lander, Ariana Fisher. She wanted to The assistant legislative clerk pro- consider amendments and get this be a doctor since she was 5 years of ceeded to call the roll. process going. It is absolutely critical age. Through hard work and deter- The PRESIDING OFFICER. The Sen- to our entire country. mination, she has been accepted to ator from New Jersey.

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.039 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3013 Mr. LAUTENBERG. Mr. President, I are taking on massive loans that will take more than 1 million lives every ask unanimous consent that the order plague them for years. I use the word year and account for 75 percent of our for the quorum call be rescinded. ‘‘plague’’ because it is very difficult to Nation’s health spending. That is why The PRESIDING OFFICER. Without get started in life, in business or start the Prevention and Public Health Fund objection, it is so ordered. a family and be facing heavy debt at has invested $226 million to reduce Mr. LAUTENBERG. Mr. President, the same time. chronic illnesses. we arrive here at a moment when we Sixty-six percent of New Jersey stu- The President’s budget also calls for once again have a chance to view the dents graduate with loan indebtedness. using this program to protect women’s differences in thought and perspective The average loan burden for New Jer- health by providing breast and cervical which are exhibited at this moment in sey graduates is more than $23,000. No cancer screenings to low-income this institution. Today, we are talking wonder we hear that technology com- women, but it won’t happen if Repub- about college education. We are talk- panies are hungry to hire but can’t al- licans get their way. ing about programs for young people to ways find people with the education The Republican bill would also crip- get an education and go to college. and skills they need. The pricetag ple programs that keep kids from For generations, affordable college alone puts college out of reach for too smoking and help smokers to quit. We education has been an essential tool for many people have all seen the ads—real people tell- providing opportunity and building a And the clock is ticking on even ing real stories about how tobacco has strong society. higher college costs. Unless Congress affected their lives. This chart tells the I know from personal experience that acts, interest rates on many student story: ‘‘Don’t be shy about telling peo- government plays a critical role in loans are going to double on July 1— ple not to smoke around your kids.’’ making higher education possible. I less than 2 months from today. For We see a picture here of a mother and served in World War II, and when I many students, doubling rates will cost a child. Republicans don’t care about joined the Army there was no prospect them $1,000 more for each year of col- educating people on the dangers of for me to go to college. I was 18 when lege. smoking? Who are they protecting I enlisted. When I finished my Army But instead of standing with stu- here? Certainly not our children and service—having been in Europe during dents, our friends on the Republican certainly not our students. the war—things looked bleak, but side are playing politics. They made it It is unconscionable. Republicans there was an opportunity that loomed clear that keeping student loan rates profess they want to keep loan rates in front of me, and that was an ability low is not a priority. They don’t see it low but only if we sacrifice programs to attend college. as something being worthwhile. Two that protect children from smoking ad- My family was faced with poverty Republican Senators have introduced diction and help women avoid breast and there wasn’t much money in the budget proposals that would allow stu- cancer and other deadly diseases. family, but there was something called dent loan interest rates to double. The Democrats have a better solu- the GI bill. The GI bill gave me a Yesterday, we saw 44 Senate Repub- tion. The bill Majority Leader REID has chance to achieve a dream. licans vote to prevent the Senate from introduced pays for keeping student I joined with a couple friends to form even considering our bill to keep stu- loan rates low by eliminating a tax a company. The company was called dent loan rates low. How heartless. convenience that millionaires and bil- ADP. The company that produces the How thoughtless it is to punish our lionaires use to avoid payroll taxes. labor statistics every month that this country this way. College is already Rather than choose to close this loop- country and the whole world sees. too expensive. Why would we put up hole, the Republicans choose to take When I was able to start this company obstacles to getting an education? this opportunity to talk our bill to with two other fellows, none of us had Republicans should listen to people death. They would rather see interest any money. The two of them were who are suffering from the high cost of rates double for students than force the brothers, and we didn’t have any re- college. There have been 1,400 people wealthy to pay their fair share of the sources at all. We had to start from who have written to me through mail country’s obligation. nothing. In the days that we had a or Facebook to say: Don’t let them do Student loans open the door to op- chance to get going, the future was it. Don’t let them double my rates. portunities. Interest rates have to be brightened a little bit by the fact that A single mother from New Jersey kept low to protect graduates from a an education was possible to have. who is helping her daughter pay for mountain of debt. That company we started with nothing college wrote to say that any increase I call on my professional experience today employs more than 50,000 people would create enormous hardship and an again, if I might. I finished college. My around the world. inability to continue to provide for the father passed away while he was in the The country invested in my genera- family. Another New Jerseyan says Army. He was only 43 years old. He left tion by helping us pay for college, and America will not be able to compete my mother a 37-year-old widow to care that investment helped create decades with the rest of the world if college is for herself and my sister. As luck had of prosperity. As a matter of fact, that accessible only to those who have the it, I got an education at Columbia Uni- generation—post-World War II—was ability to pay for it up front, and I versity, at the business school there. I called the greatest generation ever agree. We will not be able to compete if started a company I mentioned before seen in American history. Out of 16 we don’t have the educated people nec- called ADP. It provides services across million people who served in the Army, essary to fill the jobs that are avail- the world for those companies that 8 million people got a college education able. need help in doing their payroll, ac- through the GI bill, and thus this gen- Our Republican friends say they want counting, and other recordkeeping that eration that came out started us on a to prevent the doubling of interest companies must do. It only happened track for prosperity this country had rates. So why don’t they step up to the because we were able to get our edu- never seen. The investment the GI bill plate? I don’t understand that. They cation through the GI bill. There was made in people says that when we have say one thing on one hand: Oh, yes; we zero cost to those of us who served in a chance to educate people and get don’t want to increase the rates. On World War II and even some money to them to go to college or to attend a the other hand, they say we are not pay for books and for other necessities. university, that is the way we create going to help keep them at the lower So I call on my Republican col- the next great generation. rate they are now. They say in order to leagues to stop the obstructionism, Attending college has never before pay for keeping rates low for students, stop the politicking, and stop throwing been this expensive. The cost of tuition we have to cut vital funding for pro- obstacles in the way of young people at public universities is 37 percent grams that keep people healthy. Their who want to get an education and more expensive now than just 10 years bill would slash funding for prevention make a contribution to this society as ago. Think about that. If the average and public health funds, programs dedi- well as to themselves and elevate cost for a college 10 years ago was cated to stop devastating diseases be- America’s ability to deal with the com- $40,000, it now costs well over $50,000. fore they occur. Chronic diseases, such petition we see in the world. It is time As a result, more and more students as cancer, heart disease, and diabetes, to do that.

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.064 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3014 CONGRESSIONAL RECORD — SENATE May 9, 2012 I am not suggesting that our Repub- this point in this issue, it will fail I am on the Finance Committee. The lican colleagues don’t want progress. again and then that side can say: Oh, Finance Committee is supposed to be They do. But when we try to move a those Republicans just want to raise handling taxes. Let’s see. How many bill that says: Keep interest rates low interest rates. Not true. markups have we had this year? I don’t on college loans, keep the rate low so I hope the American people have no- think we have had a single markup. We that when people get out of college ticed that any bill that goes directly have not looked at a specific bill and they are not so burdened by debt that from the President to HARRY REID to tried to come up with a solution in they can’t get started in life, I say the floor doesn’t pass. A bill that goes committee. Nothing has been assigned keep them low so that America com- to committee, regardless of where the to that committee to finish. petes as it should—right at the top of source is, has a chance of a bipartisan Do we think we have any tax prob- the ladder with educated people, people solution. lems in this country? I think so. We who want to succeed but don’t have the I am the ranking member on the keep talking about tax reform, but we tools necessarily until they finish their Health, Education, Labor, and Pen- are not doing anything on tax reform. college education. Why put obstacles in sions Committee, and we have a user Instead, we are talking about the inter- the way? It is incomprehensible be- fee bill that passed nearly unanimously est rate on college student loans. It is cause there are a lot of good people on out of committee. We have the support extremely important to the 40 percent the other side. But why do they persist of the stakeholders. We have the sup- of the students who have a subsidized in obstructing the opportunity to even port of the companies. We have the loan who are going to be protected by discuss it? They want to filibuster it to support of Senate Republicans and this. It is extremely important to death. Filibuster, for those who don’t Democrats. We have even talked to the them. We keep talking about college know the term, means talk, talk, talk, House people about it. It is a bill that and the cost of college, but are we talk, talk—do anything but make ought to make it through here pretty doing anything about the cost of col- progress. quickly, and I suspect it will. When it lege? No, we are not. That should be So I hope we will say to those who does, I bet we don’t hear any comment disappointing to America. We ought to have been successful: Do your fair about it because that would make us be covering the big issues. share. Let your contribution to the look like a do-something Congress, Our committee did a bunch of hear- well-being of our country educate those which is what we ought to be. ings, and I asked for those hearings to who can learn and not make it so ex- My colleagues can’t tell me this is be on the cost of all college education. pensive, so out of reach that few will be the only issue that needs attention. Instead, what we did was beat up on able to take advantage of it. Yet we are going to spend a whole week private for-profit colleges. We did hear- I ask to please move this bill along. on this issue when both sides agree it ing after hearing after hearing, and Let’s let the American people at least ought to be at 3.4 percent. What we are some of those were a little suspect be- know what we think about this legisla- disagreeing on is how we will pay for cause I know at least one of the wit- tion to keep interest rates low. it. I have to tell my colleagues that the nesses called in to testify fell short in With that, I yield the floor. real answer isn’t either side’s answer, the market and was able to run down The PRESIDING OFFICER (Mr. but it could be worked out if it went to the colleges and thus make a lot of SANDERS). The Senator from Wyoming. committee. money off of his testimony. That is not Mr. ENZI. Mr. President, first, I ask I was told this was going to be a bi- how it is supposed to work. We could unanimous consent that immediately partisan, jointly discussed issue just have looked at all college costs and following my remarks, Senator UDALL before we left for the recess. Then this found some ways to drive down the of New Mexico be recognized to speak. bill was put forward, and no further price of college, but we didn’t do that. The PRESIDING OFFICER. Without conversation was allowed on it. Our So now we are standing here and say- objection, it is so ordered. committee was left out of it. And we ing: Those darned Republicans aren’t Mr. ENZI. Mr. President, I have been bring it to the floor, and they said we interested in the cost of college. How listening to these speeches for the last will have a fair and open debate. Yes, wrong can you be? couple of days—3 days, actually. If one look at this—there are two of us on the We started this debate on Monday, listens to the other side of the aisle, floor, and he is waiting to speak and he we voted on it on Tuesday, and then we one would think Republicans are is not listening to what I am saying, decided we would reconsider the vote. against college education. I don’t think and there isn’t anybody else listening That means the pollsters said that this there is a person in America who be- to what I am saying. Well, they might is a pretty good issue for that side of lieves that. One would also believe we be back watching the television and the aisle, and if they can drag it out want to raise the interest rates from picking it up there, and I certainly longer, they can do better. That is not 3.4 percent to 6.8 percent. There hope they are. what Congress is about. Congress is shouldn’t be anybody in America who Where we get the real discussion is in about solving problems. believes that either. We really think the committees. Small groups of people There are two sides to this, and in that for 1 year the rates on subsidized who are intensely interested in the the debate earlier, I said that if we Stafford loans ought to stay at the 3.4 issues come to those committees and would just allow a side-by-side so that percent, and maybe beyond that. we work it out. Senator HARKIN and I you get a vote and we get a vote, we The real issue isn’t the interest rate, will get amendments a couple of days could get something done and move on. and we can tell that from the speeches before the bill is to be marked up in The Senator from Iowa, Mr. HARKIN, that have been given. The real issue is committee to find out what said: I would let us do a side-by-side. the cost of college. Are we doing any- everybody’s ideas are for how it ought The next thing I know, the media is thing about the cost of college? No. to be changed, and we sit down and we saying: You were offered a side-by-side Does Congress have anything to do be- look through those and we say: Well, but you did not take it. Not true. We sides debate this particular issue? Evi- look at this pile here. They are all were offered an opportunity maybe to dently not. We are being called a do- pretty much the same amendment, but put a substitute amendment in at a fu- nothing Congress, but evidently we there are people from both sides of the ture time—maybe. That is not the don’t have anything else to do. It could aisle who are interested in it, so why same. That is not the same as getting be possible to go to something else, but don’t we just get those four people or the same kind of a vote on the same instead we have had one vote on this, those two people or those five people kind of an issue. And that is always and we still weren’t given an option for together and see if they can’t work what has been done. We have always al- this side of the aisle to have a vote on something out. It is really surprising lowed side-by-sides. But not on this our idea. So now we are going to get to because they usually can come up with one. We would rather have the debate vote on that same issue from Tuesday a few changed words that solve the going on and try and convince America once again—maybe sometime this problem in which they are interested. that both sides of the aisle are doing week or maybe not until next week. In- That is the way we get things done. the wrong thing. stead, we are going to stay right on That is not the way we are operating Not only are we giving the impres- this issue so that if we stay at exactly on the floor. sion that we are a do-nothing Congress,

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.065 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3015 we are giving them the impression to succeed, you have to keep rein- votes, is not going to resolve it. Even if there is nothing for us to do. Let’s see. vesting and reinventing. That means we got to do an amendment or two— We did not do a budget and we have not you do not get to take the money out. that is a big deal around here: to get to done any appropriations bills yet, and If we were being fair, we would say do an amendment or two on the floor— there are 12 appropriations bills that anybody who makes over $250,000 in we still would not be able to resolve it have to pass this body, and it takes at dividends a year would include that as because we would not have gotten the least a week for each appropriations payroll tax. In other words, this is an- people from here and the people from bill. We have the authorization bill for other Warren Buffett thing. How many there together in a small group to defense which we debate each and millions do you think he makes in a work out a solution. That is what the every year, and about 100 other issues year that come into him as dividends? leader ought to be doing. That is why that need to come up here. But instead, If those did not count as dividends, he you send things to committee. But we we are not voting this week, except the would have to pay a Medicare percent- are not doing that. earlier vote on this particular bill and age tax on every dime of that. That is The other side has assured me that another reconsideration vote. If you what we are talking about here with even though we are not putting this keep doing the same thing, you ought the professionals whom we are going to money into the Medicare trust fund, to expect the same kind of results. discriminate against in a bit. We are that the Medicare trust fund will still One of the reasons we are voting saying that anything that counts as a have all of its money. Let me tell you against the bill that is on the floor is dividend for them, they are going to how that works. As an accountant in it has not been to committee so it has have to pay the Medicare tax on. Why the Senate—and there are only two of a lot of flaws in it. This is a poorly just pick on the professionals? Why not us now. For 15 years, I was the only drafted bill. Here is kind of how it pick on all small businesses? one. But there are two of us now. Here works: We have said that dentists and Of course, small business is the job is how it works: When the money doctors and other professionals who are creator for the country, so we should comes in, a bond is put in the Medicare in small corporations—we are picking not be picking on any of them. We drawer that says the Federal Govern- on small business here—are cheating should be making sure they are paying ment owes Medicare that amount of on their taxes. They are not paying a the taxes they owe, but that is not money. But we go ahead and spend the payroll tax on their dividends. what we are doing. And we are saying money. There is a law against that, and the Warren Buffett is a special case out They say: Well, this trust fund is still IRS can enforce that law, and does en- there, even though we like to talk intact. No. It only has debt in it. It force that law. The examples that have about a Warren Buffett tax every once does not have money in it. I discovered been given are times that they actually in a while, but we are not going to in that trying to get some money out of a caught people doing that and enforced this case. trust fund once. They said: Well, you it and won. But to do an audit on this, What we are talking about is the tax cannot get it out unless you put money it would probably take a maximum of that would be for Social Security and in. What kind of bank account is that? 30 minutes of computer time to find Medicare. If they are not paying that, What kind of a trust fund is that? That every small business corporation that they ought to be paying it. But we are is what Social Security and Medicare might be cheating on their payroll saying that is a good pay-for. are. They are a bunch of bonds in a taxes. But instead of doing that, we are How many times do you think we can drawer that the Federal Government going to use it as a pay-for, and we are take the money that is supposed to go says we are good for. The way we are saying it is only doctors and dentists to Social Security and Medicare and spending, we may not be able to be and lawyers and accountants and other spend it on something else and hope good for that. People ought to be con- professionals who are doing this. Social Security and Medicare continue cerned about that. Well, there are a whole bunch of peo- to exist? That is what we are doing So that is where we are. We are talk- ple who have small business corpora- here. We are saying we are going to ing about taking the Medicare money tions. Small business corporations are take the money from the doctors and and the Social Security money, putting an important way to finance small the dentists and other professionals bonds in a drawer, using the money, businesses, and it is a little less com- and we are going to make them pay a and saying all is well in the world and plicated than the big corporations. But Social Security and Medicare tax, but everything is paid for. we usually do not pick on them specifi- we are not going to put that into Medi- Our side has said, there is a health cally, and we usually do not separate care, we are not going to put that into care slush fund and there are not any them into separate groups. This one is Social Security. Instead, we are going criteria set up on it. There are some just the professionals. It does not cover to give it to college students so they broad categories it can be spent on, but the rest of them. have a reduction in their loan. there are no real criteria on it, and it I asked the question earlier. I said: It is kind of interesting. The Depart- has more than enough money to pay Does that mean you are saving the oth- ment of Education borrows their for this. The only person who gets to ers for a pay-for for something else? If money at 2.8 percent, maximum, and decide how that money is given out is there is a problem, we ought to solve they are loaning it out to college stu- the Secretary of Health and Human the problem. But the problem can eas- dents at 3.4 percent for subsidized stu- Services, and she has a lot of flexibility ily be solved by the IRS by doing the dent loans and 6.8 percent for unsub- on that. There is a lot of money com- proper job of auditing, if that is the sidized student loans. The law says ing in—maybe at least $2 billion every case. But these small business corpora- that on July 1 it is supposed to go to year allocated to that, and there is al- tions are declaring that a lot of their 6.8 percent for both subsidized and un- ready money in that fund, as it started profit is a dividend. subsidized student loans. Where do you with more. I think the estimate was Here is an interesting part: We are think that profit goes? Well, we al- actually $80 billion over the life of the not talking about the income tax they ready spend that on other projects. health care bill. The President himself pay on that. They are having to pay That is why it needs to go to 6.8 per- has helped himself to that when we did the income tax. Unlike a big corpora- cent, so we can pay for what we prom- the payroll tax holiday extension. That tion, they are paying the income tax ised we would pay for. But if we freeze is where the money came from for that. on their personal tax form the minute the interest rate on subsidized loans at So our side has said: Why don’t we it is earned, not when it gets actually 3.4 percent for one-year, we still have use that again? That is supposedly real distributed. to pay for the other things. So what we money. But one thing that both sides Most of the small businesspeople are going to do is, we are going to take are doing—they are saying: OK, we are have to pay the tax on it but leave it in money that ought to go to Medicare, going to freeze the interest rate for 1 the business so they can grow their and we are going to give it to college year, but we are counting revenue that business. I have been there. I have had students. So it is a dilemma. is supposed to come in for 10 years. a small business corporation. I know, We want to make sure the rate stays How many people in America can while you would like to take the at 3.4 percent. But this body, debating say: I am going to have this salary, and money out, if you want your business back and forth, without getting any I might have it for 10 years, but I need

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.067 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3016 CONGRESSIONAL RECORD — SENATE May 9, 2012 to spend it all this year. If I spend it all schools too because we are going to it is. In fact, it is so tough that the this year, how do I live the other 9 need a lot of different professions in fu- other side doesn’t want to talk about it years of the time? That is what we are ture years. any further. The result? Yet another faced with every time we do a 10-year Let’s get this thing to committee and filibuster. receipt of money in exchange for a 1- get it resolved and get on with some of That brings me to my other regret. year spending project. And we are the issues we need to be working on— Once again, this Senate is broken, in doing that more and more and more. some of the ones that are big money limbo, stuck. Once again, the American But, again, under our accounting sys- that affect all of America, not just 40 people look on in dismay. tem, that does not go down as the same percent of the students at about a cost The Senate was once called the kind of liability and debt situation of $7 a month. greatest deliberative body in the world. that increases the debt ceiling or in- So with that plea, I yield the floor. Now it reminds me of that song, ‘‘The creases the debt for the country. So it The PRESIDING OFFICER. The Sen- Sound of Silence,’’ ‘‘and no one dared is a very clever tactic to use, but it is ator from New Mexico. disturb the sound of silence.’’ not honest with the American people. Mr. UDALL of New Mexico. I thank That is what we hear more and Yes, I am upset we are spending all you for the recognition, Mr. President. more—silence. No debate, no discus- this time on this reconsideration of a Let me say, I have been sitting here sion. Yesterday’s vote was the 21st fili- vote that we had. When you do not listening to my colleague, the Senator buster by Republicans of a Democratic make any changes, you can expect the from Wyoming, and I think he makes bill this Congress—the 21st—and the vote to come out exactly the same. But some good points. I think we do need a year is young. it allows us days to harangue each more open process. I think we need to This ugly parade of filibusters—and other, and that is the wrong way to do try as much as possible to work with for what? Let’s see. To block the Presi- it. each other in the committee process. I dent’s job bill, to stop the repeal of tax I have asked the leader to pull this do not think there is any doubt about breaks for big oil companies, to not bill down, send it to committee, give that. I think we need to allow germane help local governments pay for teach- them a limited amount of time to work amendments and have a good, robust ers and first responders, to prevent a on it, and see if they can come up with debate on the bills that are on the minimum tax on households earning a solution that both sides would like floor. more than $1 million a year, and now it and one that does not have a lot of But what I want to talk about today is student loans—another filibuster, loopholes in it. is the fact that we are in a filibuster. more sounds of silence. I have previously joined my col- Loopholes? Well, when we are talking Fifty-two of us wanted to move for- leagues and friends, Senator MERKLEY about these small business corpora- ward on this bill and 45 of us did not. of Oregon and Senator HARKIN of Iowa, tions for doctors and dentists, et That is why we are locked in this situ- to push for fundamental reforms in cetera, we said: If they make more ation. how the Senate operates. The reason than $250,000 a year and if the small I rise with regret today, and there is then and even more abundantly clear business corporation has three stock- much to regret about yesterday’s vote now is that the Senate was broken. holders or less. I do not think they are on the student loan bill. First, I regret This is tragic. At a time when our cheating to the degree that they say the false choice between helping stu- country needs us to act, we do almost this money would come in. But if they dents or funding preventive health nothing. It is no wonder that are, I can see the wheels turning out care. Most Americans support student Congress’s approval ratings are at an there and people saying: Let’s see, I loans. Most Americans see the value of all-time low. Instead of working to have three people in my corporation. preventive health care. Yet my col- solve the major problems our country Oh, my son is not in the corporation leagues on the other side of the aisle faces, we retreat to the shadows. yet, so we will make that a fourth one. would ask that we sacrifice one for the In order to have real change in the When we get the fourth person in the other. process, the Senate has to change the corporation, we are exempted from An affordable education should not way we go about business. I have advo- this. be held hostage to cuts in preventive cated, and will continue to do so, that How much money do you think is health care. That is not a choice; it is the Senate, at the beginning of each going to come in through that pro- an ultimatum. Congress, should adopt its own rules by posal? That is what can be worked out Have we come to this? We teach our a simple majority vote. The Constitu- if it goes to committee. So, I again ask children to set goals, to set priorities. tion clearly gives us this authority, the leader to send it to a committee, It should surprise no one that they se- and it is time to exercise it. Yet at the give them a limited amount of time to riously question our goals, our prior- beginning of each Congress, the Senate, work on it, and see if they can come up ities. It is like a bus heading toward a unlike the House of Representatives, with a solution that both sides will cliff. We can turn it around, and we doesn’t vote to adopt its rules. The like because both sides said the inter- ought to be able to do so without Senate simply accepts the rules of the est rate ought to be 3.4 percent for the throwing students underneath it. previous Congress—rules that lead to next year. The other side says they care about the unfettered abuse of filibusters, Then we ought to take a look at the our Nation’s students too. Perhaps, but rules that have made the Senate a cost of all college education. As all the there is caring, and then there is devo- graveyard of good ideas. people have said, college is important. tion. Once again, their devotion is for When we fail to reform our rules, Education after high school is impor- the wealthiest among us and not for their abuse becomes an entrenched tant. We had one hearing on that in the the 7 million students who are worried part of the Senate’s culture. That is HELP Committee too. When we were about how they will pay for their edu- where we are today—after years of fili- scheduled to have that hearing—I cation. buster abuse, we have turned the Sen- make a weekly trip out to Wyoming Back to choices. As any bright col- ate into a supermajoritarian body. To and travel around the State so I get to lege student can tell us, it always do anything in today’s Senate requires talk to a lot of people—I happened to comes down to choices. How do we pro- 60 votes. be talking to some sixth graders, and I tect the Stafford Student Loan Pro- Yesterday’s vote on the student loan said: We are going to have this hearing, gram? By further cuts to preventive bill was a prime example. We can’t and the title of it is: Is education after health care? By weakening research to even get onto the bill. Fifty-two Sen- high school important? Do you know prevent disease? By cutting our re- ators voted to move forward, but 45 what. Those kids all said yes. We did sponse to public health emergencies? Senators chose to filibuster. Once not have to bring in some people from No, of course not. We do it by closing again, minority obstruction prevents Harvard and Stanford to convince us of a tax loophole, by requiring the majority rule. That is not democratic, that. We could have been talking about wealthy to pay their fair share of pay- and it is not how our Founders in- the cost of college, which would get roll taxes. tended the Senate to operate. more people going to college, and not I submit that this is not, and should This has to change. A new Congress just college but some of the tech not be, a tough choice, but apparently will begin next January. Right now, we

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.068 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3017 don’t know which party will control Mr. COONS. Mr. President, I ask Alexandra, a recent graduate from the House, the Senate, or the White unanimous consent that the order for Wilmington, DE, reached out to me and House, but it should not matter. The the quorum call be rescinded. wrote: Senate must reform itself regardless of The PRESIDING OFFICER. Without I can confidently say that going to a four- which party has control, not for the objection, it is so ordered. year college has prepared me more than I good of the Democrats or the Repub- Mr. COONS. Mr. President, I rise thought it ever could for success in my job licans but for the good of the country. today to talk about where we are right search. Because of this education, however, I The Senate will have many new am facing about $20,000 of debt with a low- now procedurally in the Senate on the paying job. Members next January, and I think issue of student loan debt and the in- most of them will want to become part terest rates that we charge those who Alexandra is deeply concerned about of a functioning legislative body, one take out Stafford loans, but also the the significant debt she faces, and she where they can bring their best ideas larger question of student loan debt urged me to work hard to freeze the in- and have them debated, a body where and how we make the highway, the terest rate on her student loan rather all views are heard and considered but pathway, to higher education for than letting it double. I agree with Alexandra and fully sup- majority rule is once again the norm. America’s students clearer, fairer, and port efforts on this floor to fix this That institution cannot exist under the more predictable. short-term problem by freezing inter- existing rules, and we continue to Yates once said that education is not est rates on Stafford loans. prove that on a daily basis. the filling of an empty bucket but the I am disappointed that yesterday’s The reforms Senators HARKIN, lighting of a fire. Educating our young vote—the failure to invoke cloture—to MERKLEY, and I proposed at the begin- people is one of the most important get past a filibuster by the other party ning of this Congress had strong sup- things we do as a society. In lighting has prevented the Senate from moving port, but it did not pass. So here we the fire of curiosity, imagination, en- forward and discussing a possible real- are, 21 filibusters later, and the line of thusiasm, entrepreneurship, and cre- istic solution. Americans who wait for a Congress ativity, particularly higher education that works, that actually gets things It is important for the Congress to is one of the things that distinguishes confront this rise in interest rates, and done, and that comes together to find the United States from many other solutions—that line just got longer by I hope we can come to a bipartisan con- countries around the world. We have sensus. But let’s be clear. Even doing about 7 million students. long had an enormous advantage in Several of my constituents have that will not solve the larger long-term having one of the world’s greatest edu- problem. Addressing this rise in inter- watched and have seen this filibuster cational systems. proceed, and they have written me on est rates would not change how much As the occupant of the chair knows, my Facebook page. I thought I would students borrow, numbers that are only in Vermont and in Delaware today share a couple of those comments be- steadily growing. there are so many working families cause they really go to the heart of Just this week our Nation’s cumu- who deeply question whether the path- what is happening on student loans. lative student loan debt total crossed way toward higher education for their Tracy Edwards writes me, saying the $1 trillion threshold. That is an children will be as predictable, fair, that student loans are vital. She says: enormous burden on young people just and straight as it has been for past getting started in life and in their ca- My daughter graduates this Saturday from generations. When I meet with business UNM. Without student loans, this day would reers. If we are to really address this not have come. owners, innovators, job creators, they challenge, we have to help students deliver the same message: They have Her daughter would not have grad- make smart decisions about financing jobs. They are ready to hire people who uated. their education. have the education and the skills they We can empower students to make In 6 months, we will start repayment of need to compete and participate in the those loans. I am not asking anyone else to more informed choices by fully under- pay my daughter’s loan, but why should we modern economy. standing the relationship between their be punished with an increase for trying to Today, with more than 12.5 million debt, their choice of major or studies, ensure our children get a solid education? If Americans out of work, including more and their future career path by pro- a bankruptcy is filed, you could lose your than 30,000 Delawareans who are out of viding more and earlier and better in- home, your car, and your credit, but student work, the question is, How do we make formation about this. loans are mandated for repayment, no mat- higher education, skills training, voca- Financial literacy, and a clear under- ter what. Is it too much to ask for a fair in- tional schools, and community college standing of how or whether borrowing terest rate? I think the 1 percent will not be more affordable and accessible? One happy until it is a world of the haves and will help raise their earning potential have nots. thing we can do, and have to do, is ad- later is a key part of the real solution dress the staggering debt that lingers Thank you, Tracy. to our country’s ongoing and exploding with graduates sometimes decades Donna Kubiak writes this: student loan debt. after completing school. I agree . . . my daughter is a single mom of We can also seek creative solutions 3 kids and working on her degree to teach el- We are faced with two problems. One that look beyond the obvious and real- ementary school . . . without financial aid, is a short-term problem and one is ly work to make higher education she will have to work for a minimum wage longer term. The short-term problem is more affordable for more students. job and get welfare indefinitely. that without immediate congressional That is why I am so glad to work with Thank you, Donna, for that com- action, student loan interest rates for my friend, Congressman CHAKA FATTAH ment. millions of Americans will double on of Philadelphia, PA, on new legislation Mr. President, as we know, this issue July 1. to encourage private investment in col- is absolutely crucial to 7 million Amer- If we allow rates on federally sub- lege scholarships. Congressman FATTAH ican students who don’t want to see sidized Stafford loans to increase from showed tremendous leadership in those interest rates skyrocket a couple 3.4 to 6.8 percent, we will saddle stu- crafting this bill. We introduce a new months from now. I believe the esti- dent borrowers with an additional $6.3 tax credit that will help more kids af- mate is about $1,000 per student. They billion in interest payments. In Dela- ford a college education, entitled Com- can’t afford that, and we need to get ware, this could impact more than munities Committed to College Tax this bill on the Senate floor. We need 18,000 student borrowers, burdening Credit Act of 2012. to cut out the filibusters and settle families who are still struggling to re- The bill provides tax incentives to down and do the amendment process, cover from the recession with unex- encourage private donors to support the debate, and produce a bill. pected additional bills. Lots of people and sustain educational trusts that I suggest the absence of a quorum. have contacted my office—called or make higher education possible for all The PRESIDING OFFICER. The written or sent me postings on the young people of a chosen commu- clerk will call the roll. Facebook, and they have tweeted to nity. These private donors, encouraged The legislative clerk proceeded to contact my office and many others by a 50-percent tax credit, will help call the roll. here about their concerns. fund need-based college scholarships,

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.041 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3018 CONGRESSIONAL RECORD — SENATE May 9, 2012 fueling a new generation of achieve- I thank the Chair. done before July 1. We all agree we ment by making higher education more The PRESIDING OFFICER (Mr. should. President Obama and even Gov- affordable and reducing the need for MERKLEY). The Senator from Illinois. ernor Romney said we should get this student loans. But equally important, Mr. DURBIN. Mr. President, I thank done. But not a single Republican Sen- in places such as Syracuse where these my colleague from Delaware for speak- ator would vote with us—not one. Not programs are already in place, it ing to some critical issues. It is a one Senator would join us to bring the changes expectations. When young peo- shame we are not in a position where bill to the floor. That is why we sit ple, in the very beginning of school- we can offer the Senator’s amend- here literally wasting our time and the ing—from the first, second, and third ments, but, as he knows and as he time of taxpayers over an issue we grade—know there is some possibility, spoke to in his speech, the decision should not even have to debate. some savings account, some commu- yesterday by the Republicans to go I don’t know about the Presiding Of- nity program that will fund their high- into a filibuster—which is what we are ficer, but I had to borrow some money er education, the likelihood they will having on the floor and which is why to go to school, and I borrowed it from finish high school and go on to college there are so few people and nothing the Federal Government. It was called increases by four to seven times. really happening aside from some real- the National Defense Education Act. I support Congressman FATTAH’s in- ly outstanding speeches—is a decision They created it back in the late 1950s, novative effort to support community they have made time and again. early 1960s, because we were scared to trusts that support higher education. This was rarely used in the history of death of the Russians and sputnik. We That is one idea for looking beyond the the Senate—the filibuster. Oh, ‘‘Mr. thought, they can take over the world. box and working to make higher edu- Smith Goes to Washington’’—some They have the bomb, and now they are cation more accessible. people will remember that movie, and the first in space with that little bas- Here is another. The American in the 1960s during the civil rights de- ketball-sized satellite. So we thought Dream Accounts Act is a bipartisan, bi- bate, they may remember that too. it was time for America to get up and cameral bill to encourage real partner- Sometimes it was used during the Viet- get moving, and we created, for the ships between schools, colleges, non- nam war, maybe. But it has rarely been first time in our history, student loans profits, and businesses to develop se- used. Now it has become so routine, so available to nonveterans. We gave help cure, Web-based, individual, portable commonplace, that day after weary to veterans in the GI bill after World student accounts that contain informa- day people who subscribe to C–SPAN War II, but these were for nonveterans. tion about each student’s academic on their cable channels are calling in I got one. I signed up for it. preparedness and skills. It also directly to the cable providers and asking for When I graduated from law school in tackles the issue of student loan debt their money back because nothing is the late 1960s, they added up all the by working with students on financial happening on the floor of the Senate. money I had borrowed—college and law literacy from a very young age. Instead And whose fault is that? It is our fault. school—from the Federal Government. of having each of these different re- It is our fault. When an issue such as I remember the day I brought the let- sources available, as they are now, sep- this—the one that brought on this fili- ter home to my wife, baby in arms and arately siloed, it connects them across buster—is explained to the American another one on the way, and said: My existing education programs at the people, they shake their heads and ask: student loans have all been added up. State and Federal level. What are you doing in Washington? She said: How much? I am grateful to Senator BINGAMAN of Well, here is what this is all about. I said: It is $8,500. She said: We will never be able to pay New Mexico and Senator RUBIO of Flor- On July 1, the interest rate on student that back. ida for joining me as original cospon- loans through the Federal Government And I said: I know, but we have to doubles. It goes from 3.4 percent to 6.8 sors here in the Senate. This bill is a try. We have a year before the first percent unless we do something. So we potentially powerful step toward help- payment is due. ing more students of all income levels have a bill we brought to the floor yes- My first job out of law school paid and backgrounds access, afford, and terday. We said: Let’s bring this bill in, $15,000 a year, to put things in perspec- complete a college education. It is debate it, vote on it, and let’s change tive. rooted in my own experience with the I the law so that we can protect these Now look what students are faced Have a Dream Foundation, which has students and families. Let’s freeze that with today. They are lucky to get out helped more than 15,000 young people increase and keep it at the original 3.4 with an average indebtedness of all over the country to achieve the percent. Now, what is that worth? For $24,000—very lucky. For a lot of stu- dream of higher education. someone borrowing $20,000 over the dents, that isn’t even possible. They If we want American companies, course of their college education, it is get more deeply in debt as they go American workers, and American fami- worth $4,000. If that is your son or through school. They say: Well, you lies to compete and win in the global daughter and you happened to cosign told me to finish my education so I economy, we have to help our students with them, $4,000 is nothing to sneeze would have a better life and realize my afford higher education. It really is at. dream. I can’t quit now. I have to bor- that simple. I look forward to working The Pew Foundation did a survey of row some more money and finish next with my colleagues to find solutions working families across America, I say year and the following year or I have that promote affordable, accessible to the Presiding Officer, the Senator wasted it all. If I am a college dropout, higher education because early action from Vermont, and they asked a very what do I have to show for it—no di- and early engagement can help change basic question of the working-family ploma, just the debt. the future and the outcomes for our population. The question was how So we asked families across Illinois kids and make it possible for them to many of them could come up with to get in touch with us and tell us achieve the American dream. $2,000 in 30 days—2,000 bucks. Maybe about student debt as they see it in It is my hope that we can overcome there was an emergency in their their lives. We know nationally that this needless filibuster, yesterday’s set- home—a water pipe just broke or the student debt in October of 2010, for the back, and that all of us can come to- furnace broke down. My daughter just first time in history, surpassed credit gether and achieve what we say we went to the hospital. But how many card debt. People owe more money on want to do together—a responsible could come up with $2,000 was the ques- student loans than on their credit path forward that avoids needless addi- tion, and only half responded that they cards, and it is growing—dramatically tional burdens on working families try- could. Half of the working families in growing. When you meet these fami- ing to finance their children’s edu- America have access to $2,000. So what lies, it is sometimes a sobering mo- cation—and that we can look seriously does $4,000 or more in interest being ment. at these two proposals I have touched paid mean? For a Senator, not much. I was at a college in Chicago last on briefly today that will help our stu- For an average working person, a lot. week and met a student, a lovely dents of the future understand and af- Now, what happened yesterday? We young lady majoring in art, which my ford higher education to make their called this bill and said: Let’s move it, daughter majored in, so I have no prob- American dream possible. let’s start debating it, and let’s get it lems with that because she is a great

VerDate Mar 15 2010 04:35 May 10, 2012 Jkt 019060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.043 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3019 artist and doing well, thank goodness. went to a private college costing about That is what this debate is all about. This young lady said: I am about to get $30,000 a year. She has been a file clerk The fact that we couldn’t get one sin- my bachelor’s degree with a major in for 11 years since graduating. He want- gle vote from the other side of the art, and my student indebtedness at ed to help her, but he lost his job in aisle—not one—to move to this bill to this moment is $80,000. But I am going 2001. He says: even debate it is a sad commentary. on for a master’s. I think it will be Once you fall on hard times you can never This Senate Chamber is supposed to about another $60,000 of debt. get a good job in the finance or insurance in- be about deliberation, amendment, and I think she was 25 years old. Think dustry. Your credit is no good. Bad credit debate. At the end of the day we put about that. Think about what she has means no good job. our fate in the hands of those gathered just done to herself. First, she did what Then he decided to go back to school here and have a vote, up or down, win she was told to do—to get a college de- to pursue his MBA in marketing. Still, or lose. I know the Presiding Officer gree. Then she got so deeply into debt with no decent pay, he couldn’t repay has had some that have won and some that she is going to come to realize— his student loan. So he went back to that have lost and so have I. But that sadly come to realize—it is going to in- school so he could defer the student is what it is supposed to be all about. fluence so many decisions in her life. loan again. He still doesn’t have a job Instead, my voice echoes through an Will she ever be able to buy a car, get that pays enough for him to pay off his empty Chamber. The people who forced married, buy a home, have children? loan balance and help his daughter pay the filibuster and stopped us from tak- Each one of those decisions along the her balance. ing up the student loans are gone. Not way is going to be based on her student So here we have mom and dad still a one of them is here. loan indebtedness. with student debt and struggling to Last night, I was one of the last So is it right for us to keep the inter- find a decent job. speakers, and I looked over there to an est rate low on student loans? Of Sharon Sikes from Chicago wrote empty side of the aisle and I said: Of all course. Why do we want to make it any about her son. She lost her job shortly the people who objected to our going to worse for her or anyone else who bor- before her son started college. Each se- the bill, not a single one of them is rows money after July 1? We should be mester his tuition kept going up. This here. They are all out to dinner. That doing this, and we shouldn’t be squab- is something we hear about very often. isn’t right. bling over it. We were sent here to Her son’s degree is in journalism and I know the Presiding Officer has been solve these problems, not to go into mass communication—not a field pushing for changes in the Senate filibusters—one more Republican fili- where you can find a lot of jobs these rules. It would strike me that if some- buster. I don’t want to get partisan days. His loan payments are about to one wants to stop the consideration of about it, but they didn’t provide a sin- kick in, and he works as a cook in an a bill before the Senate, they ought to gle vote—not one—to help us move to Irish pub. He makes enough for his park their posterior in one of these this issue. basic expenses—food and keeping his chairs and be prepared to take on all So on our Web site we asked families bicycle running so he can go back and comers to explain why. If they don’t to tell us their stories. I just spoke forth to work. She said she honestly have the time or inclination to do it, about a young student, but many of doesn’t know what he is going to do then for goodness’ sake don’t start a these students have parents and grand- when the student loan payments kick filibuster. One of the rule changes we parents who sign up to help them. They in. His debt from the State university have talked about says that if it is that say: Yes, we will cosign the note be- tuition has left the family with more important to stop the business of the cause we want our granddaughter or than $60,000 in loans, and he is cooking Senate—as we are doing now—they our daughter to finish school; let me in an Irish pub. ought to at least have to stay on the help. Sharon says she is in her sixties and floor of the Senate to defend their posi- About 6 weeks ago, the New York nobody is lining up to give her a job. Times reported a story in which a tion. Is that too much to ask, that they She had hoped to be able to help her don’t go out to dinner and check in the woman had her Social Security check son pay his loans off sooner. She says: garnished for student loans. It wasn’t a next day to make certain that lunch is He deserves a chance to follow his passion going to be served on time? loan she took out, it was a loan she without being saddled with years of debt. guaranteed for her granddaughter. Her I think this issue gets to the heart of Jill Shakely from Rockford started granddaughter defaulted, and they what our economy is facing, what fami- out at Rock Valley Community Col- went after grandma. She now receives lies are facing, and what the Senate re- a smaller Social Security check be- lege, which I think is a smart deci- fuses to face. This Republican fili- cause of the student loan and her good- sion—to go to a community college if buster has stopped us from taking up a ness in helping her granddaughter. you are not sure or at least you want measure that would reduce the interest That is the reality of this debt. It an affordable first year or two of col- rate on student loans from 6.8 percent trickles through entire families—fami- lege. She started out at Rock Valley, to 3.4 percent. In my State of Illinois, lies with guaranteed loans that, when and when she graduated in 2002, she de- 365,000 students will be affected if that they go into default, mom and dad cided she wanted to continue her edu- interest rate goes up. It isn’t fair to keep working well past what they cation and pursue a 4-year degree. She them. It isn’t fair at all. It isn’t fair to thought was their retirement age. didn’t have any support from her fam- be stuck in the middle of a filibuster I have to say, the more I watch this, ily. They couldn’t help her pay for it. when we ought to be rolling up our the more I am concerned about this So she took out students loans. The sleeves and tackling this issue. student debt bomb that could go off, if tuition was $26,000 a year, and it added The House passed a bill on student it hasn’t already. I worry about what it up quickly. She doesn’t own a home loans. Just to give an idea of how there will do to these families and to the rep- and makes a salary some would say is is a different approach to things, the utation of a college degree. There are pretty small. She spends a large per- House Republicans—with very little, if people who are skeptical today about centage of her salary on her loans. She any, Democratic support—said: OK. We mortgages. They wonder, why would I would like to go back to school but will lower the interest rate on student take out a mortgage on a home if the can’t take on any more debt. She is loans, and here is how we will pay for value of the home is going to plummet? worried about how it will affect her fu- it. We will take money out of a preven- That skepticism doesn’t help us build ture. She said that keeping interest tive health care program. In other hope in communities and neighbor- rates low will help students like her. words, we will reduce childhood immu- hoods. What if we reach that level of Who wants to argue against this situ- nizations, and the money we save by skepticism when it comes to higher ation? Who believes we ought to raise not vaccinating children, we will use education? So this is part of the con- the cost of student loans? Who thinks that to bring student loan interest versation. that is in the best interest of this coun- rates down. Let me tell my colleagues about try in terms of encouraging young peo- How about that for a Faustian some of the stories I have heard. ple to go to school and getting them choice? How about that for a deal with Dewaine Nelson from Rockford con- out of school without a mountain of the devil? We will run the risk that tacted our office. Dewaine’s daughter debt which crushes them? children will get childhood diseases,

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.044 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3020 CONGRESSIONAL RECORD — SENATE May 9, 2012 and we will take the savings from that find some common bipartisan agree- [From The Washington Post, Apr. 27] and help the kids who are in college. Is ment and get this problem solved. We LET’S JUST SAY IT: THE REPUBLICANS ARE that what it has come to now, your will not get it solved stuck in another THE PROBLEM money or your life? That is the choice filibuster, which is where we are right (By Thomas E. Mann and Norman J. we have? That is all? I don’t think so. now, wasting the time of the Senate Ornstein) Why is it that the Tax Code in this and the time of the taxpayers and en- Rep. Allen West, a Florida Republican, was country has become a sacred docu- dangering a lot of families across recently captured on video asserting that there are ‘‘78 to 81’’ Democrats in Congress ment? One would think that some peo- America who desperately need our ple, instead of putting their hand on who are members of the Communist Party. help. Of course, it’s not unusual for some renegade the Bible and swearing to uphold the lawmaker from either side of the aisle to say Constitution, put their hand on the Mr. President, I yield the floor, and I suggest the absence of a quorum. something outrageous. What made West’s Bible and swore to uphold the Tax Code comment—right out of the McCarthyite as it stands, without a word being The PRESIDING OFFICER. The playbook of the 1950s—so striking was the al- changed. I didn’t. That Tax Code is a clerk will call the roll. most complete lack of condemnation from law written by men and women, some Republican congressional leaders or other The assistant legislative clerk pro- major party figures, including the remaining of great intellect and some bowing to ceeded to call the roll. special interests. Our job every year is presidential candidates. It’s not that the GOP leadership agrees to look at it and see if it makes sense. Mrs. BOXER. Mr. President, I ask unanimous consent the order for the with West; it is that such extreme remarks The way we pay for the student loan and views are now taken for granted. interest rate to stay affordable is clos- quorum call be rescinded. We have been studying Washington politics ing a loophole in the Tax Code used by The PRESIDING OFFICER. Without and Congress for more than 40 years, and accountants and lawyers to avoid pay- objection, it is so ordered. never have we seen them this dysfunctional. ing taxes. They have made out pretty In our past writings, we have criticized both well under that provision for a while. Mrs. BOXER. Mr. President, yester- parties when we believed it was warranted. But why should they have that for life? day I spoke on the floor about the Today, however, we have no choice but to ac- Democratic bill to reduce interest knowledge that the core of the problem lies Are they now entitled to that? Is that with the Republican Party. an entitlement they get for life? I don’t rates on student loans, and I was la- menting the fact that our Republican The GOP has become an insurgent outlier think so. I think it is a loophole we can in American politics. It is ideologically ex- close, save the money, and reduce stu- colleagues would not even permit us to treme; scornful of compromise; unmoved by dent loans—not at the expense of chil- turn to the bill. They were filibus- conventional understanding of facts, evi- dren being immunized against whoop- tering a motion to proceed to the bill dence and science; and dismissive of the le- ing cough and measles. That is what it which meant we could no longer work gitimacy of its political opposition. comes down to. on it. That is why this floor today is so When one party moves this far from the empty. We should have been here work- mainstream, it makes it nearly impossible House Republicans seem to think for the political system to deal construc- that is a pretty good tradeoff. I don’t. ing on a student loan bill which is so tively with the country’s challenges. Let’s at least debate it on the floor of critical to so many college students ‘‘Both sides do it’’ or ‘‘There is plenty of the Senate instead of getting locked and their families across the country. blame to go around’’ are the traditional ref- into a worthless filibuster again and The interest rates on these student uges for an American news media intent on again and again. That is where we are. loans, which are the Stafford loans, the proving its lack of bias, while political sci- Many of us have gone to our official Federal subsidized loans, is going to go entists prefer generality and neutrality when Web sites and invited people living in from 3 percent to 6 percent. We want to discussing partisan polarization. Many self- styled bipartisan groups, in their search for our States to send us their stories get it back down. This is important to common ground, propose solutions that about student loans. I have read three 7.5 million students and their families. move both sides to the center, a strategy of them here. I can tell you many more When I concluded my remarks, Sen- that is simply untenable when one side is so from those I witnessed just this last far out of reach. ator BROWN from Massachusetts took week going through my State, going It is clear that the center of gravity in the to the floor. He expressed shock that I from Chicago to Peoria to Decatur and Republican Party has shifted sharply to the was concerned about Republican fili- all points in between. The stories just right. Its once-legendary moderate and cen- come crushing in one after the other, busters and started to talk about how ter-right legislators in the House and the cooperative the Republicans have been, Senate—think Bob Michel, Mickey Edwards, and they are reminders that what we John Danforth, Chuck Hagel—are virtually do on the floor of the Senate makes a pointing to a few issues where we have worked together. Look, I am here to extinct. real difference in the lives of families The post-McGovern Democratic Party, by across America. say that working together in a bipar- contrast, while losing the bulk of its con- I have said it before: I wouldn’t be tisan manner on a few issues is fine, servative Dixiecrat contingent in the dec- standing here today without student but we need to work together in a bi- ades after the civil rights revolution, has re- loans. The government loaned me the partisan manner on almost all the tained a more diverse base. Since the Clinton money, and somehow or another I paid issues we work on because the Amer- presidency, it has hewed to the center-left on issues from welfare reform to fiscal policy. it back. I didn’t think I could, but I ican people are counting on us. Because there are a handful of issues on which While the Democrats may have moved from did, hoping the next generation could their 40-yard line to their 25, the Republicans use that money to get their own stu- the Republicans cooperated, let’s not have gone from their 40 to somewhere behind dent loans. It is part of the kind of come down to the floor and say every- their goal post. trust we have, one generation helping thing is perfect and Republicans are What happened? Of course, there were larg- another. So are we going to let these not blocking us, when, in fact, they are er forces at work beyond the realignment of students down? Are we going to let this blocking us. the South. They included the mobilization of filibuster be the end of the conversa- social conservatives after the 1973 Roe v. The Democrats essentially retook Wade decision, the anti-tax movement tion? the Senate in 2007. Since then, these launched in 1978 by California’s Proposition I have listened to the Republican Republican filibusters have been off 13, the rise of conservative talk radio after a leader come to the floor day after day the charts. Don’t take my word for it, congressional pay raise in 1989, and the and say: Oh, this is just a political listen to congressional scholars Thom- emergence of Fox News and right-wing blogs. stunt. Where is the stunt? What it But the real move to the bedrock right as Mann and Norman Ornstein. They comes down to is we want to bring the starts with two names: Newt Gingrich and recently wrote an opinion piece in the bill to the floor and open it to an Grover Norquist. Washington Post. It was based on a amendment process. From the day he entered Congress in 1979, To my friends on the Republican study. I ask unanimous consent to Gingrich had a strategy to create a Repub- have that printed in the RECORD. lican majority in the House: convincing vot- side, give us your best ideas. Put them ers that the institution was so corrupt that in amendment form. Bring them to the There being no objection, the mate- anyone would be better than the incumbents, floor. Let’s debate them. Let’s vote. We rial was ordered to be printed in the especially those in the Democratic majority. will do the same. Who knows, we may RECORD, as follows: It took him 16 years, but by bringing ethics

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.050 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3021 charges against Democratic leaders; pro- posal so that there would be zero GOP back- In the House, some of the remaining cen- voking them into overreactions that enraged ing for any bill that came within a mile of trist and conservative ‘‘Blue Dog’’ Demo- Republicans and united them to vote against Obama’s reform initiative. As one co-spon- crats have been targeted for extinction by Democratic initiatives; exploiting scandals sor, Sen. LAMAR ALEXANDER (R-Tenn.), told redistricting, while even ardent tea party to create even more public disgust with poli- The Washington Post’s Ezra Klein: ‘‘I liked Republicans, such as freshman Rep. ALAN ticians; and then recruiting GOP candidates it because it was bipartisan. I wouldn’t have NUNNELEE (Miss.), have faced primary chal- around the country to run against Wash- voted for it.’’ lenges from the right for being too ington, Democrats and Congress, Gingrich And seven Republican co-sponsors of a Sen- accommodationist. And Mitt Romney’s rhet- accomplished his goal. ate resolution to create a debt-reduction oric and positions offer no indication that he Ironically, after becoming speaker, Ging- panel voted in January 2010 against their would govern differently if his party cap- rich wanted to enhance Congress’s reputa- own resolution, solely to keep it from get- tures the White House and both chambers of tion and was content to compromise with ting to the 60-vote threshold Republicans de- Congress. President Bill Clinton when it served his in- manded and thus denying the president a We understand the values of mainstream terests. But the forces Gingrich unleashed seeming victory. journalists, including the effort to report destroyed whatever comity existed across This attitude filters down far deeper than both sides of a story. But a balanced treat- party lines, activated an extreme and the party leadership. Rank-and-file GOP vot- ment of an unbalanced phenomenon distorts virulently anti-Washington base—most re- ers endorse the strategy that the party’s reality. If the political dynamics of Wash- cently represented by tea party activists— elites have adopted, eschewing compromise ington are unlikely to change anytime soon, and helped drive moderate Republicans out to solve problems and insisting on principle, at least we should change the way that re- of Congress. (Some of his progeny, elected in even if it leads to gridlock. Democratic vot- ality is portrayed to the public. the early 1990s, moved to the Senate and po- ers, by contrast, along with self-identified Our advice to the press: Don’t seek profes- larized its culture in the same way.) independents, are more likely to favor deal- sional safety through the even-handed, Norquist, meanwhile, founded Americans making over deadlock. unfiltered presentation of opposing views. for Tax Reform in 1985 and rolled out his Democrats are hardly blameless, and they Which politician is telling the truth? Who is Taxpayer Protection Pledge the following have their own extreme wing and their own taking hostages, at what risks and to what year. The pledge, which binds its signers to predilection for hardball politics. But these ends? never support a tax increase (that includes tendencies do not routinely veer outside the Also, stop lending legitimacy to Senate closing tax loopholes), had been signed as of normal bounds of robust politics. If any- filibusters by treating a 60-vote hurdle as last year by 238 of the 242 House Republicans thing, under the presidencies of Clinton and routine. The framers certainly didn’t intend and 41 of the 47 GOP senators, according to Obama, the Democrats have become more of it to be. Report individual senators’ abusive ATR. The Norquist tax pledge has led to a status-quo party. They are centrist protec- use of holds and identify every time the mi- other pledges, on issues such as climate tors of government, reluctantly willing to nority party uses a filibuster to kill a bill or change, that create additional litmus tests revamp programs and trim retirement and nomination with majority support. that box in moderates and make cross-party health benefits to maintain its central com- Look ahead to the likely consequences of coalitions nearly impossible. For Repub- mitments in the face of fiscal pressures. voters’ choices in the November elections. licans concerned about a primary challenge No doubt, Democrats were not exactly How would the candidates govern? What from the right, the failure to sign such warm and fuzzy toward George W. Bush dur- could they accomplish? What differences can pledges is simply too risky. ing his presidency. But recall that they people expect from a unified Republican or Today, thanks to the GOP, compromise worked hand in glove with the Republican Democratic government, or one divided be- has gone out the window in Washington. In president on the No Child Left Behind Act, tween the parties? the first two years of the Obama administra- provided crucial votes in the Senate for his In the end, while the press can make cer- tion, nearly every presidential initiative met tax cuts, joined with Republicans for all the tain political choices understandable, it is with vehement, rancorous and unanimous steps taken after the Sept. 11, 2001, attacks up to voters to decide. If they can punish ide- Republican opposition in the House and the and supplied the key votes for the Bush ad- ological extremism at the polls and look Senate, followed by efforts to delegitimize ministration’s financial bailout at the height skeptically upon candidates who profess to the results and repeal the policies. The fili- of the economic crisis in 2008. The difference reject all dialogue and bargaining with oppo- buster, once relegated to a handful of major is striking. nents, then an insurgent outlier party will national issues in a given Congress, became The GOP’s evolution has become too much have some impetus to return to the center. a routine weapon of obstruction, applied for some longtime Republicans. Former sen- Otherwise, our politics will get worse before even to widely supported bills or presidential ator Chuck Hagel of Nebraska called his it gets better. nominations. And Republicans in the Senate party ‘‘irresponsible’’ in an interview with Mrs. BOXER. Here is the title of have abused the confirmation process to the Financial Times in August, at the height their piece, ‘‘Let’s Just Say It, The Re- block any and every nominee to posts such of the debt-ceiling battle. ‘‘I think the Re- publicans Are The Problem.’’ as the head of the Consumer Financial Pro- publican Party is captive to political move- They explain that in the past they tection Bureau, solely to keep laws that ments that are very ideological, that are looked at Congress and thought both very narrow,’’ he said. ‘‘I’ve never seen so were legitimately enacted from being imple- parties were to blame. But on reflec- mented. much intolerance as I see today in American In the third and now fourth years of the politics.’’ tion, as they studied the facts—not the Obama presidency, divided government has And Mike Lofgren, a veteran Republican rhetoric but the facts—it was Repub- produced something closer to complete grid- congressional staffer, wrote an anguished licans who are causing all the prob- lock than we have ever seen in our time in diatribe last year about why he was ending lems. Here is what they write: Washington, with partisan divides even lead- his career on the Hill after nearly three dec- The filibuster, once relegated to a handful ing last year to America’s first credit down- ades. ‘‘The Republican Party is becoming of major national issues in a given Congress, grade. less and less like a traditional political became a routine weapon of obstruction ap- On financial stabilization and economic re- party in a representative democracy and be- plied even to widely supported bills or Presi- covery, on deficits and debt, on climate coming more like an apocalyptic cult, or one dential nominations. change and health-care reform, Republicans of the intensely ideological authoritarian have been the force behind the widening ide- parties of 20th century Europe,’’ he wrote on All we have to do is watch the Senate ological gaps and the strategic use of par- the Truthout Web site. or certainly when one is in the Senate tisanship. In the presidential campaign and Shortly before Rep. West went off the rails we realize these scholars, Mann and in Congress, GOP leaders have embraced fan- with his accusations of communism in the Ornstein, are absolutely right. In this ciful policies on taxes and spending, kow- Democratic Party, political scientists Keith Congress, the 112th Congress, we have towing to their party’s most strident voices. Poole and Howard Rosenthal, who have long already seen 48 Republican filibusters; Republicans often dismiss nonpartisan tracked historical trends in political polar- 48 times the Republicans stopped us analyses of the nature of problems and the ization, said their studies of congressional from doing our work. But don’t get the impact of policies when those assessments votes found that Republicans are now more don’t fit their ideology. In the face of the conservative than they have been in more impression this was new behavior be- deepest economic downturn since the Great than a century. Their data show a dramatic cause it did not just start in the 112th Depression, the party’s leaders and their out- uptick in polarization, mostly caused by the Congress, it started way before. In the side acolytes insisted on obeisance to a sup- sharp rightward move of the GOP. 111th Congress, which covered 2009 and ply-side view of economic growth—thus ful- If our democracy is to regain its health 2010, Republicans conducted 91 filibus- filling Norquist’s pledge—while ignoring con- and vitality, the culture and ideological cen- ters. In the 110th Congress, 2007 and trary considerations. ter of the Republican Party must change. In 2008, they conducted 112 filibusters. So The results can border on the absurd: In the short run, without a massive (and un- early 2009, several of the eight Republican likely) across-the-board rejection of the GOP far this year we have had 48 Republican co-sponsors of a bipartisan health-care re- at the polls, that will not happen. If any- filibusters. In the Congress before that form plan dropped their support; by early thing, Washington’s ideological divide will we had 91, and the one before that we 2010, the others had turned on their own pro- probably grow after the 2012 elections. had 112.

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.052 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3022 CONGRESSIONAL RECORD — SENATE May 9, 2012 What does this mean? It means that What we do here matters. We could who is making a very pointed plea that in all those times we were unable to do save students thousands of dollars on he relies on these loans, and it is going the work of the American people be- the life of their loans. These are stu- to be very difficult if the interest rates cause one party stopped it. There have dent loans for the middle class. More are doubled. been more filibusters by the Repub- than 75 percent of the borrowers in the Then there is Rachel Zavarella of licans in the 6 years since Democrats program come from families with in- San Jose, CA. She says: took over the Senate than there were comes below $60,000 a year. This is not Increasing Stafford loan interest rates in the prior 10 years. I want to remem- some fun and games, but my Repub- only kicks students and borrowers when we ber one of those times because I was lican friends and their presumptive are down . . . Increasing student loan inter- sitting down there in the manager’s est is another dirty trick to redistribute Presidential nominee want to cut taxes wealth to the top, and it’s disgusting and un- chair, coming out of my committee, for people who earn millions of dollars. acceptable. I want you to vote for students Environment and Public Works, with a They want to give back an average tax and borrowers by voting yes on the bill. near unanimous vote on a little pro- cut of $250,000 a year, and they don’t Mr. President, that is just three sto- gram called the Economic Develop- have it in their hearts to lower student ries from my State. I know in your ment Administration. This EDA has loans for families who earn less than beautiful State of Oregon, which has so been in place for—I want to say 50 $60,000 a year. They call for permanent many wonderful universities, you could years. It has been in place for 50 tax cuts for the people who don’t need have dozens of stories like this. Clearly years—5–0; not 15—50 years through them and again they block the way for this is not a time to increase loan rates Presidents Republican and Democratic. us to help the middle-class students to for students. This should not be a par- It is a beautiful program because what get a break. tisan matter. Why would every single it does is it takes some modest Federal Yes, I hope college students are pay- Republican vote no? I guess it is their funds and leverages States’ money, ing close attention to this debate. I ideology. Tax breaks for the rich, rich, local money and private money and it know some of them from the great rich, rich, and nothing for the middle comes into areas that are having dif- State of California whom I represent class. ficulty with job creation and invests are paying attention. I have heard from If anyone wants to know the dif- that money there. As a magnet it cre- some of them, and I will have some of ference between the two parties, this is ates all of these contributions, and we their comments for the RECORD. the moment. It used to be a little hard- have seen hundreds of thousands of Delmita Turner of Rancho Cordova, er to describe the differences between jobs created as a result. CA writes: the parties. When I was young, both So I come to the floor to get this lit- I am the single mother of three children parties stood here and fought for the tle bill reauthorized. After coming out ages 7, 14, and 20. My daughter Khendel is in middle class, for students, for the envi- of my committee with a strong bipar- college and we have had to get student loans ronment, and for women. It isn’t that to pay for her tuition. I am also in college tisan vote, it is filibustered. I stood way anymore. It just is not. down there for 5 days, and I could not and have student loans as well. An increase would put a tremendous strain on an already If we say we are here for the next believe it. They are filibustering a bill stretched budget. generation, which all of us say all the that would create and save hundreds of After our family suffered nearly every type time one way or the other, then you thousands of jobs. of loss one could, including death, fore- don’t allow student loan interest rates We also saw these Republican filibus- closure, divorce, and unemployment all to double. You don’t allow it. We know ters when we tried to say millionaires within a year, I decided to go back to school how to fix it. We found a very simple should pay their fair share, which with the hopes of making life better for my way to pay for this that makes sense. would have reduced the deficit by bil- family. I began working a year ago last De- Closing a tax loophole doesn’t hurt cember after being unemployed for 2 years. lions. Oh, no, they could not stand to anybody. Look at yesterday’s vote. It have us debate that so they filibus- Now I ask: How American is that? We was not good; it was not pretty. tered. They filibustered a bill to elimi- always strive to be better. Here is a I am glad Senator HARRY REID is nate tax subsidies to big oil and gas woman who went through death, fore- going to give us another chance to companies that are making record closure, divorce, and unemployment change that, and I hope my Republican profits and getting subsidies that they within 1 year. She decided to make life friends are now hearing from their con- have gotten for 30 to 40 years. No, we better for her family. She began work- stituents back home. I hope when they were not allowed to go to that. ing a year ago last December after come here tomorrow they will cast a And then, of course, the most recent being unemployed for 2 years. ‘‘yes’’ vote and let us proceed to this filibuster by Senate Republicans is on She continues: ‘‘So please consider bill and let us do our work. Let us this critically important legislation to how this will impact so many of us.’’ stand for the people who need us to I am asking my Republican friends— cut interest rates on student loans. stand for them, the middle class of this as we have another vote on this I think They are going to double on July 1. Oh, great country. We know why the coun- tomorrow morning—to think of no. They wouldn’t even let us go to the try is great; it is because of the middle Delmita Turner of California and what bill. I say that despite the protesta- class. We need to make sure they have this means to her. tions of Senator BROWN of Massachu- the opportunity to go to college and setts, this has got to stop. He cited Then there is Joseph Briones of San Fernando, CA. He writes: not have this burden on them that is so three or four times that we worked to- heavy it becomes too heavy for them to gether. I say good for that; I am happy I am a senior in high school who will be at- tending college this fall. My dad is unem- bear. Pretty soon they will stop going for that. That does not in any way ployed and a cancer survivor and my mom is to college because they don’t want to change the fact that we face filibuster working part-time. These conditions put a have that burden on their back. after filibuster, 48 times in this Con- large stress on my myself as well as on my We have a chance to do the right gress so far now. parents to attend my top choice of college, thing. I hope we will. Let the record I hope every college student in this Westmount College. show these filibusters are outrageous country who has an opportunity is We did not receive financial aid from the and they are historic in nature. We watching this Chamber. This Chamber state and we have an immense amount re- have never had them before. We have maining to pay for my upcoming educational should have been bustling today with never had such a lack of cooperation people talking and working together, years. We are going to be taking out student loans to pay for college. Please do not allow from Republicans before, and it has offering amendments so we could cut the passage of the bill that will increase the been a sad several years where we have these interest rates on student loans. interest on student loans. We rely on these seen filibuster after filibuster, even College students and high school stu- loans and it is difficult to pay them back for stopping us from going to a bill. To- dents who want to go to college, and some students as it is. Please do not make it morrow maybe we can come together their parents, grandparents, aunts, and a larger burden for students to go to college. and get on this bill and do our work. uncles ought to understand that this So tomorrow when we take up this I yield the floor, and I note the ab- floor is not filled today passing this bill again, I hope my Republican sence of a quorum. legislation because of a Republican fili- friends will stand down and think of The PRESIDING OFFICER. The buster. Joseph Briones of San Fernando, CA, clerk will call the roll.

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.053 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3023 The assistant legislative clerk pro- However, there are things about it and we have seen a series of them, is ceeded to call the roll. that trouble me. Particularly, at this let’s campaign on the idea that Repub- Mr. RUBIO. Mr. President, I ask moment in American history, and licans are not in favor of students, and unanimous consent that the order for maybe as a result of what is happening let’s use the student loan issue as an the quorum call be rescinded. this week, circumstances allow me to example of that. Of course, those plans The PRESIDING OFFICER. Without illustrate that better than any other kind of got messed up when Repub- objection, it is so ordered. week since I have been here. licans said: We agree with you. We Mr. RUBIO. Mr. President, I have fol- Everyone agrees that interest rates can’t let student interest rates go up lowed with great interest this week the on student loans cannot go up. Every- either. So they were off balance for a conversation in the Senate about stu- one agrees. There hasn’t been a debate couple of days. dent loans, the issue we are currently on that. I haven’t run into anybody in By the way, the President continued on, to proceed to a bill on student loan either party who has come to me and to travel the country and campaign on interest. I have followed it with great said: Let the interest rate go up. Let keeping student loan rates down even interest for a couple of reasons. students pay more. There isn’t any ar- though no one was against them. He First of all, in the State of Florida, gument about that. The argument is was campaigning against his opponents obviously, and across the country, simply this: How do we pay for it? We on this issue even though there were no there are thousands—maybe hundreds have to pay for it because if we are opponents on this issue. of thousands—of people who either going to keep the interest rates down But, nevertheless, after a couple of have student loans and are paying on these federally subsidized loans, we days of figuring out they were going to them back or are relying on them to go have to pay for it. We have to find the lose this wedge issue, they came up to school in the future. So it is totally money from somewhere to pay for it. with a second way to deal with it; that an issue that affects the State of Flor- So the debate and the disagreement, to is, let’s bring this issue to a vote on the ida, where I come from. Senate floor, but let’s build it in such I have a personal interest in the stu- the extent it is a complicated disagree- a way—let’s put a bill on the floor of dent loan issue as well. I think I have ment—and I don’t believe it is—the dis- the Senate that we know will fail, that said on the floor before that my par- agreement is not about the student we know Republicans can’t vote for. It ents worked very hard, but they were loan interest rate; the disagreement is wasn’t: let’s meet and see where we can never able to save enough money to about how we pay for the cost of keep- agree on how to pay for this so we can pay for my college education. So I re- ing the rate low for another year. lied on grants and on loans for under- There is a difference of opinion. get something done. It was: let’s put a graduate education, but especially for I am new to the Senate. I am not new bill on the floor that we know Repub- my law school education. I came back to legislation. I spent 9 years in the licans will never support, designed spe- to Miami to go to law school. I am glad Florida Legislature and 2 years as the cifically to fail, so we can then spend I went to the University of Miami. I am Speaker. We dealt with complicated the week talking about this on the proud to have gone there, and I think issues there as well. What we would do Sunday talk shows and speeches on the the education I got there, my legal in those instances where there was a floor and missives from the campaign. education, was very good. It also hap- disagreement, not on what we wanted It is about messaging. pened to be very expensive. I relied on to accomplish but on how to get there, In a country where our national debt student loans to be able to pay that, so is we worked on it. We would sit people now equals the size of our economy; in much so that when I graduated from down and say it is not that much a country where we are 5, 6 months law school in 1996 I graduated with a money in terms of Federal standards— away from catastrophic increases in law degree and a significant amount of it sounds crazy to say that because we taxes; in a country where just last Fri- student debt that I had accumulated are talking about billions of dollars— day we learned that job creation and throughout 7 years of study. but from a Federal standpoint, it is not job growth is stagnant, where millions In fact, I am still paying one of those that complicated an issue. Let’s sit of Americans have been out of work for loans today. I think—I may be wrong, down. Let’s get some like-minded peo- 2 years or longer; in a country where but I know of one—I know of only one ple together and let’s figure out a bi- millions of Americans have stopped other Senator who is paying student partisan way to pay for what we all looking for work because they have be- loans right now. I pay, as I have joked agree we need to do. That is the nor- come so depressed, the Senate has in the past, about $723 a month to mal, regular way to deal with an issue wasted yet another week on a show somebody named Sallie Mae, which is, such as this. when, in fact, this is an easy issue for all joking aside, a servicer that col- That is not what has happened. Why us to have come together and solved. lects on these loans. So it is an issue I hasn’t that happened? Why have smart, This is not new, by the way. This has understand and care about on a per- well-educated, intelligent people who been the mode of operation here for sonal level, as well as because of the serve in this Chamber not met and dis- most of the weeks I have been in the people I represent. cussed a way to pay for this? It is real- Senate. It is a pretty familiar pattern. This issue we are discussing this ly not that complicated. It wouldn’t The campaign of the President decides week has allowed me to use it as a take that long to come up with a way on an issue they want to use to divide point of illustration to the people back to pay for it that both sides agree on. Americans for electoral purposes, the home who are watching this debate. Why hasn’t that happened? Senate offers up a bill they know Re- After having spent my first year here, The answer to that question is some- publicans will vote against, and then one of the questions I get the most is, thing people back home are not going they spend a week giving speeches on What is it like in the Senate? to like, and people who are here today it. The only difference is they are dou- Let me begin by saying I am honored visiting are not going to like to hear, bling down: We are going to vote on the and privileged to serve here. There and whoever is watching on television exact same thing a second time, just to isn’t a day that I don’t walk into this right now isn’t going to like. The rea- drive the point home. building, even into this very room, and son is because that is the way things Here is why this bothers me. No. 1, not be taken aback by the history that have been since I have gotten here. It there are real issues this country faces, has been made on this floor, by the is about politics. issues that deserve a sense of urgency, great men and women who have served Shocking as that may be, there is issues that deserve every single person our country from it, and by the won- politics in this process. That is what is who serves here to solve. This is one of derful Americans with whom I serve influencing us today. them, by the way. We don’t have time even now. I have bragged to people who A few weeks ago, the President made to waste on shows. It bothers me. are watching or to whom I have spoken a decision that this was an issue he The second reason it bothers me is that I have never had a bad experience wanted to use. His campaign folks these are real people who are being im- with anyone in the Senate in the year made a decision that student loan debt pacted by this issue. There are real and a half I have been here, and I am and the interest rate was a perfect op- people out there who, because they very proud to be a part of this institu- portunity to use as, yet again, another can’t find a job when they graduate, tion. wedge issue. The latest wedge issue, have to get a forbearance. Forbearance

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.055 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3024 CONGRESSIONAL RECORD — SENATE May 9, 2012 means they have to call their lender other wedge issue of the week. Next is critical, and student loans are about and say they can’t pay their loans. Do week we will be right back here with to double, only to have those on the my colleagues know what happens another bill that was designed to fail other side turn this into yet another when we get a forbearance on our on purpose so we can get another filibuster, another capitulation to loans? It compounds. It sits there. It is week’s worth of talking points on yet those on the far right of their party— delayed. It is not delinquent, but it another issue. those who are so far right that when compounds. The interest rate is added The good news is—people in this city, they look back along the political to the principal. So by the time a per- unfortunately, think they are smarter spectrum they can only see the small son starts paying it, their loan is even than they really are. People back home image of their hero, Ronald Reagan, bigger than the loan they took out to know all of this. They can see it for fading in the distance. go to college. what it is. People aren’t dumb. The They have gone so far to the right There are other people who can only American people certainly aren’t that they can no longer see any heroes, afford to make X amount of payments dumb. They can see right through this not even their own. So here we are because they are not making as much stuff, and they understand exactly with our side once again debating the money. Maybe they didn’t find the job what is happening. obvious and the other side defending they thought they were going to get, so So my suggestion would be that on the indefensible position of the far all they can do is pay interest. So that this issue, let’s come together. Let’s right. means by the time they finish paying say this is one of the issues that is so We are looking for common sense, off these loans, their kids will be in important, that impacts so many peo- reason, and fairness. We are, that is, college. ple in such a significant way, that it looking to govern fairly for all. They Let me tell my colleagues what it should be above politics. Let’s get to- are looking to play politics that ben- means in the real life of someone who gether over the next 48 hours. It efit a few. has these loans because I still have doesn’t seem as though this place is We are asking to stop interest rates them. What it means in the life of a overworked when we look around the on student loans from doubling for 7 person who has a loan such as this is room. million Americans by closing a gaping the following: They can’t save for their What are we doing all week? What is tax loophole that those who have bene- own kids’ college, which means not going on all week? We voted on a few fited most from this economy can drive only will they have their student loan judges, and we have given a bunch of an S corporation through. My Repub- debt, but their children will be stuck speeches. Why don’t we go somewhere lican friends are once again saying no. with it as well. and get a group of people to work on They are once again attempting to gov- What bothers me about this issue is this issue and come back with a solu- ern from the extreme, once again de- that instead of solving it, we have tion? This can be solved. manding that even closing an obvious spent the week playing a game with it What is going on now is a disservice tax loophole that benefits the wealthi- while real people are out there scared to the people who sent us here. They est is an unacceptable government in- to death—real students, real parents, deserve better. They really do. The trusion but that ending preventive care real families who are facing the threat American people deserve better. The for those who are struggling with ris- of not just an increase in the interest people we represent, the people who ing health care costs is the best option. rate but of an economy that doesn’t hired us to do the job we have now, de- Can they be serious? Can we be have a job for them. standing in this Chamber saying that Do we think the interest rate is the serve better than this sort of theater. The Senate has become a theater. It the most reasonable option to prevent biggest risk these people are facing? It student loans from doubling is not is not. The interest rate is a problem. has become a show. That is why people commonsense tax reform but ending Not having a job is a catastrophe. The get grossed out by politics. That is why breast cancer screening for millions of interest rate could be zero. If a person people watch the news at night and women? Is that the view from the far doesn’t have a job, how are they going just don’t understand this whole thing. right of the political spectrum? I ask to pay it? That is the No. 1 issue facing They have a right to be frustrated. my colleagues on the other side do these graduates. No one is doing any- They have a right to be upset. They they truly believe that is a fair option? thing about it. have a right to be impatient with us Here is what I suggest. If this was a because nothing is happening on the Have we run through all other possible place that was really working to solve issues that matter to their real lives. options to have reached a point where problems, what we would have done I hope this pattern will stop. I get it. we can now say: The only arrow left in and what we would do right now is stop There are still going to be plenty of the quiver is to end preventive care as this process, go back there somewhere, other issues we are going to have argu- we know it. Have we already ended all get a few people together who know ments about during this election year, outrageous tax loopholes for the how to solve this, and come back here. and that is good for our country that wealthy? Have we already ended sub- I guarantee that if we decided we want- we have a good debate on the issues of sidies to Big Oil that will make $1 tril- ed to solve it, it would not take long. the day. But on the ones we can solve, lion over the next 10 years and yet we Here is what else I guarantee. This is on the ones we agree on that impact give them $24 billion of tax cuts? Have going to get solved. My colleagues can the real lives of real people, let’s stop we ended the Bush tax cuts for the top mark my words. A few weeks from now the games. 1 percent and now have no other option they will come up with a deal or a bill Let’s get something done. than to end preventive health care for that will have enough votes to pass the Thank you. I yield the floor and sug- women, for millions of Americans House and Senate, and this will get gest the absence of a quorum. whose health depends on it? solved. But not before we score polit- The PRESIDING OFFICER. The Unfortunately, it seems our Repub- ical points, right? This will get solved, clerk will call the roll. lican friends have once again put par- but not before the people who care The bill clerk proceeded to call the tisanship and politics first. Their budg- more about politics than policy score roll. et prioritized tax breaks for the their political points on this issue. Mr. MENENDEZ. Madam President, I wealthy over keeping college costs Now, look, I have been around poli- ask unanimous consent that the order down for middle-class families. Only tics. I understand this is an election for the quorum call be rescinded. when they realized this would not play year and election year stuff is going to The PRESIDING OFFICER (Ms. KLO- well politically did they reverse course happen. But why are we playing with BUCHAR). Without objection, it is so or- and drop their objections to keeping the lives of real people? These are real dered. student loan rates lower because, they people who are hurting, and their lives Mr. MENENDEZ. Madam President, I said, no, that is not the government’s and their experiences and their worries cannot believe we have come to the role. But then they said: OK. We will are being used as a pawn in a political floor of the Senate at a time of eco- climb on board with that idea but only game. And it is wrong. nomic hardship and recovery for mil- under certain conditions. I will make another prediction to my lions of families, a time where jobs are Rather than close a special-interest colleagues. Next week it will be an- scarce, the need for a skilled workforce loophole that only a small minority of

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.070 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3025 wealthy businesses can exploit, they into Medicare. But this loophole—af- community that understands we have would rather cut funding for children’s fectionately dubbed the Edwards/Ging- to reduce the deficit but we cannot bal- vaccines, mammograms, and other rich loophole—has allowed certain pro- ance the budget on the backs of the critical services. This is the classic fessionals such as former Senator John next generation. We cannot cash in case of giving with one hand and tak- Edwards and former Speaker Newt their dreams and let those with the ing with the other and all without ask- Gingrich to avoid paying millions of most cash out. We need a fair solution, ing the wealthiest Americans—those dollars into the Medicare Program. not political dogma. who have reaped the most rewards and Technically, they were not wrong to These students have worked hard. benefited the most, particularly in tax take advantage of this loophole. We They deserve better. They are not ask- breaks they have received over the last were wrong to allow it to even be avail- ing for a handout. They studied hard in almost decade—to help the country, able. high school, got good grades, took out simply to help the country at this crit- But enough about the details on how loans, and got jobs to pay for college. ical time. we pay for it. This debate is all about They are working toward a better life, If that does not tell us about the pri- people, all about families struggling to doing what every parent dreams of for orities of each party, I do not know pay for college. As the first person in their children: to do well, build a de- what will. my family to go to college, who had to cent life for themselves and their fam- These preventive health services not rely on Federal grants and loans to pay ily, and give something back to their only improve people’s health and their tuition, I have a firsthand appreciation community and to the economy. lives, they also reduce the cost of of the importance of giving all students They epitomize everything we want health care. That is because it is a lot the opportunity to pursue their our young people to be. All they are easier and less costly to treat illnesses dreams. asking in return is fairness—not a po- when they are first detected. For students struggling to pay for litical sleight of hand that helps them When women have access to afford- college and racking up debt, this is not with their student loans, but in the able mammograms, their doctors will an academic argument. The extra $1,000 process takes away their health care. be far more likely to catch breast can- they would have to pay each year is All they are asking is for us not to cer in its early stages, when it is most not theoretical money. It is the dif- make it harder for them, for us not to treatable and least expensive to cure. ference between being able to repay add yet another stress to their lives. When we give a child a simple inex- their loans and entering the workforce Certainly, it is our obligation to not pensive measles vaccine, we do not with good credit versus being over- shut down their dreams of a higher have to worry about expensive treat- whelmed by debt and going into de- education. For it is in their dreams for ment for measles later on. fault. a better life that the economic future When we help people quit smoking, Recently, I had the pleasure of hav- of this Nation will be built. we dramatically reduce the cost of ing a roundtable and speaking to stu- We are globally challenged—globally treating that individual for a whole dents from Montclair State University challenged—for the creation of a prod- host of illnesses. in my home State of New Jersey about uct or the delivery of a service in terms The saying, ‘‘An ounce of prevention how the interest rate would affect of human capital. The boundaries of is worth a pound of cure,’’ could not be them. mankind have largely been erased in more appropriate to this debate. I heard from Emily Delgado, a first- the pursuit of human capital. So an en- For a party that loves to preach generation American and the first per- gineer’s report is done in India and about fiscal responsibility, it boggles son from her family also to go to col- sent back for a fraction of the cost in my mind that they would fight to cut lege. She just completed her freshman the United States. A radiologist’s re- preventive care that will reduce health year at Montclair. Despite working for port is done in Northern Island and care costs but allow tax loopholes to the college as a student mentor, Emily read by your doctor at your local hos- stay open. will still be saddled with approxi- pital or if you have a problem with Republicans decided to make a target mately $20,000 in debt by the time she your credit card, as I recently did, you of these programs, not because of sub- graduates. If she decides to go on to end up with a call center in South Afri- stantive issues—I would respect that— graduate school after that, then, of ca. but just because, plain and simple, course, that will rise significantly. In the pursuit of human capital for a they were included in the President’s She told me she cannot even bring product or service, we are globally health care bill. As we know, as the herself to calculate how much the in- challenged. For the Nation to continue distinguished minority leader said, it is terest rate hike will cost her because, to be a global economic leader, it needs all about defeating the President. The in her words, ‘‘it will just crush my to be at the apex of the curve of intel- problem with that is, it is not about dreams.’’ lect—the most highly educated genera- the President failing, it is about the Nick Weber, works three—not one, tion of Americans the Nation has ever Nation failing at one of the most crit- not two, but three—part-time jobs to had. We cannot achieve that if we have ical times in its history. They lost the help pay for college. Despite these students who have to forgo not only health care debate in 2010, and they three jobs, Nick only makes around their dreams but the ability to help the have spent every day since trying to $175 per week, which is about how Nation compete globally by getting a refight that battle. much extra he would have to pay in in- world-class education. Now Republicans will try to scare terest every month if we do not act We owe them every chance to achieve people into thinking that closing this now. He does not think that is fair, and their dreams and to help us make this corporate tax loophole will kill small neither do I. another American century. Isn’t that businesses. That is the mantra we hear A student by the name of Jamie the least we can do? Isn’t the choice every time. But, actually, according to Sommer—who dreams of one day be- clear? Let’s choose closing a tax loop- Citizens for Tax Justice: coming a professor—works part time hole that is actually creating chal- [C]losing this loophole will actually help for the school, but her income hardly lenges to small businesses that are most small businesses, which are currently puts a dent in her debt, and she fears paying their payroll taxes, and let’s subsidizing the minority who abuse it to she will not be able to afford graduate preserve the preventive health care avoid [paying] payroll taxes. school, she will never realize her that will improve the quality of the Isn’t that interesting? So most small dream. lives of our fellow citizens and, at the businesses are out there meeting the Emily and Nick and Jamie and all same time, save our health care system economic challenge every day. They the other students who are struggling hundreds of millions of dollars. pay payroll taxes, but those who are to pay for college deserve to be able to I think that choice is pretty clear— taking advantage of this loophole do realize their hopes and dreams and as- the choice the Senate should take not. It seems to me we would be giving pirations. It falls to us—all of us in clearly on behalf of our students of the small businesses a far better competi- this Chamber—to do all we can to keep future and our country. tive advantage. those dreams alive. I yield the floor. Let’s be clear: The vast majority of These students deserve our support. The PRESIDING OFFICER. The Sen- small businesses pay their fair share They deserve the common sense of a ator from Oregon is recognized.

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.071 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3026 CONGRESSIONAL RECORD — SENATE May 9, 2012 Mr. MERKLEY. Madam President, potential. That is what this debate is terest rates is a significant factor that earlier today, just a few minutes ago as about. That is a pretty big deal—cer- is dissuading people from pursuing I was presiding where the Senator from tainly a big deal for students in my higher education. Minnesota is now sitting, I listened to State of Oregon, for their parents, and Cynthia from Columbia County my colleagues speak on this issue of in- for our future economy, which needs to writes: terest rates on student loans. I was have our children in America well- If we expect to compete in a global mar- particularly interested in the speech of trained in order to drive the success of ketplace, our children must have affordable a colleague who came to the floor and our economy. access to education. said this bill that is designed to pre- We are facing a Republican filibuster I have two kids in college, and the debts we vent interest rates from doubling is all saying: We don’t want to talk about are incurring are already topping $50,000; is political show. The concept of it being this issue. That is what a motion to it right that only rich people can send their children to college? a political show is difficult for me to proceed is. My colleagues have said: What kind of a country is it where we can get my hands around. Quite frankly, No, we don’t want to debate it. I dis- spend billions on ‘‘independent security con- the President didn’t set July as the agree with them. tractors’’ in Iraq or Afghanistan, but not on date student loans would double in Let’s hear it through the voices of our own children’s education? cost. That date was set by legislation some of those folks on the front line. She concludes: Sermin from Multnomah writes: that was passed in the Senate and in Please support a plan to keep student loan the House and sent to the President. It Dear Senator Merkley: Today I am writing about student loan in- interest rates from doubling this July. is that date, just 2 months from now, terest rates. I do not want to see these rise, I want to dwell on the point she made that brings forth the urgency on this even double, when the legislation expires in for a moment. We spent $120 billion in issue—Presidential campaign or no July. Afghanistan last year on misguided na- Presidential campaign. Please fight to keep these loans at a low tion building while we let nation build- It is also important to recognize that interest rate so average Americans can have ing at home suffer, both in terms of in- a chance at an education, a better life, with- this is not a debate at this moment vestment in our infrastructure and in- about final adoption of a bill. It is out crippling debt. She continues: vestment in education. So Cynthia about beginning the process of debat- wonders what is wrong that we are fail- I was just accepted in the University of Or- ing the bill. It is a motion to proceed. ing our children when we have billions For those unfamiliar with Senate proc- egon’s graduate program in architecture. I have applied for loans as I do not have the to spend on a misguided war overseas. ess, well, this is a motion that says Alana writes: this is an issue that, because of its ur- money to pay for this education. My husband and I will have to scrape by when I quit my I am working to pay off student loans now, gency, should be on the floor now for job to go to school. which is hard enough. Now my family’s try- us to work on, and everybody in this Once I graduate and find employment, I am ing to send my youngest sister to college and Chamber knows it cannot pass without confident in my ability to pay back the is finding it hard to afford, and we are upper 60 votes. As the debate unfolds, amend- loans. But raising interest rates would make middle class. If we can barely afford an edu- ments are debated and hopefully a path it difficult to do so quickly, adding $5,000 in cation now, how will anybody be able to do is found that will produce the 60 votes interest to my 5-year payback plan. so if the interest rates go up? Please support Please stand with middle America, average necessary to send it on to the House the plan to stop this. This is a critical in- Americans, and support legislation to extend vestment in the success of our middle class. and to the President’s desk. the low interest rates on student loans. So I differ with my colleague, with I think these folks from Oregon— Kalie from Polk County writes: whom I actually have collaborated on a Sermin, Kalie, Caroline, Cynthia, and Senator Merkley, Alana—have hit the critical points number of projects. My colleague sees I am currently a freshman in college and this differently. He sees this issue as have taken out a substantial amount of stu- here. They may not know the finer one of politics. I see it as one of an ur- dent loans in my own name to make my goal points of Senate procedure, but the gent need in America for our students of attaining a college degree attainable. fact that a good portion of this Cham- to have a chance to go to college with Being 18 and having more than $20,000 in ber is voting to block having a debate affordable financing, and that afford- debt is scary, especially with the insecurity and consideration of this bill because able financing will expire a few weeks of today’s economy, but I strongly believe the bill doesn’t start in exactly the that I am making the necessary investment form they want it passed at the end is from now. It is incumbent upon this to not only better my own future, but that of body to take up this issue and provide the U.S. society as a whole, as well as gen- pretty difficult to explain. a pathway to prevent that from hap- erations to come. I say to my colleagues, if they don’t pening. As it stands right now, a college education like the bill as it is, why not bring I am struck by the voices I am hear- is something that, realistically, not every- your amendment? The bill still cannot ing from Oregon. I was doing townhalls one can achieve purely from an economic pass in the end without a super- in Oregon, and people expressed con- standpoint, and the legislation to raise inter- majority, so why not bring forth your cern about this to me. I am receiving est rates on Federal student loans would amendment—collaborate with others only make attending college all the more letters from students about this issue difficult for some. and bring an amendment forward. and from other Oregonians. This is Please do myself, my peers, my future chil- There is a fundamental disagreement really a kitchen-table issue. This is the dren, and their grandchildren a favor and in the beginning on how we pay for this family sitting around the kitchen table help keep student loan rates where they are. extension. It would not surprise anyone and saying: How are we going to make Help to make college more affordable for that I would say let’s end this war in things work? Is our child going to be all people so more of our citizens can realize Afghanistan. Let’s pay a third cutting their dreams of higher education while si- down our deficit, a third on infrastruc- able to go to college? Are we going to multaneously building a better country for be able to afford it? We can contribute future generations. ture, and a third on education, includ- ing keeping student loans affordable. a little, and hopefully our son or Doesn’t that sum it up? ‘‘Help to But that is not the plan we are debat- daughter will get some grants, but make college more affordable for all ing today. I would be glad to propose they will also have to borrow some people so more citizens can realize that plan if colleagues would like to money. If they have a huge debt load their dreams while simultaneously join me to create a supermajority. I and a high interest rate, will that be building a better country.’’ I think she would do so after we are on the bill. feasible for them or will they have to got right to the heart of it. take a year or two off and try to find Caroline in Benton County writes: You introduce a bill, you debate and a job or two in the service economy to I am an oncology nurse, presently working amend it, and you have a final vote. save money and then go back, and then on my Master’s degree in nursing. Like You cannot get it done without a what? many others, I have student debt. If we are supermajority in the end. That is why student loan rates are so to have an educated workforce, we must en- The bill as introduced says we are important. It is about the opportunity sure that the high cost of education doesn’t going to close a loophole that is a tax for our sons and daughters to have the leave students in financial ruin. entitlement for the very well off. I course in life in which they are able to Indeed, the fear of financial ruin have heard many colleagues across the pursue their dreams and realize their from heavy debt burdens and high in- aisle talk about entitlements for the

VerDate Mar 15 2010 04:35 May 10, 2012 Jkt 019060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.073 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3027 poor. I point out they should be equally from reducing the enormous burden of take the full course of credits? Maybe concerned about wasteful entitlements debt that students take on. At a time not. So then maybe it takes you 6 for the best off—in fact, more con- when college is more expensive than years to graduate. But they are also cerned. One is a fundamental safety net ever, this body’s inaction will increase taking out loans, and often huge loans. for those who are struggling in an each student’s borrowing costs by We take for granted these days that economy where there are few jobs. The about $1,000 for each year of college. students can get a loan, but 50 years other is a big bonus for the best off at And that is no small amount for most ago that was not true. Students could the very top of society. Doesn’t it American families. That is because on get scholarships, but that was about it. strike my colleagues that the safety July 1 the interest rate on new sub- My wife’s family did it on Pell grants net is better than the big bonus for the sidized Stafford loans is expected to and scholarships. At least until 1957, best off? Well, my colleagues across the double from 3.4 percent to 6.8 percent. when the Russians—or the Soviets at aisle have said: No, no, no, we want the We have been talking about this all the time—launched Sputnik. Suddenly, bill to start with our payment plan, day. The students who qualify for these the Soviets had nuclear weapons and which is to strip health care prevention loans are from middle-class and low-in- were ahead of us in space and, as a Na- from children and parents. I guess they come families. If the Senate does not tion, we were terrified. It woke our Na- weren’t raised with the same story I act soon, we will make it even harder tion up to the importance of better was raised with, which is that an ounce for them to receive the education and educating Americans and getting them of prevention is worth a pound of cure. training they need for jobs in this 21st the skills they needed to compete with It is simply better to inoculate chil- century economy. the Soviets. That meant more Ameri- High school students and adults look- dren than to hospitalize children with cans would have to go to college. ing for new career opportunities realize whooping cough. It is better to prevent I was 6 when Sputnik was launched. how economically necessary it is to at- measles than to have children suffer My brother was 11—younger than the tend college. In my generation, if you with measles and be damaged by mea- pages. A lot younger. My parents sat us had a high school degree, you could get sles. It is better to manage diabetes down in our living room, in St. Louis a good manufacturing job that paid a than it is to amputate feet and provide Park, MN, and said to us: You boys are decent wage and gave you health care guide dogs because folks have gone going to study math and science so and a pension. Today we need postsec- blind from diabetes. Prevention is bet- that we can beat the Soviets. I thought ondary training and strong computer that was a lot of responsibility to put ter than cure. An ounce of prevention math skills to operate the equipment is worth a pound of cure. on a 6-year-old, but my brother and I in most manufacturing facilities. But were obedient sons and we studied I disagree with the plan to strip pre- it is not just manufacturing, it is many math and science. And wouldn’t you vention as a strategy when we have op- of the fastest growing jobs in the know it, my parents were right. We tions. Let’s take that money from na- United States—it is computer jobs and tion building in Afghanistan, let’s take beat the Soviets. You are welcome. health care jobs. A high school diploma But to get there we had to put in the money from bonus breaks for the is simply no longer a ticket to a job best off in society, those tax loophole place new Federal programs to help av- that pays family-supporting wages. erage Americans afford college. A year entitlements—let’s do that because With an increasing number of jobs re- after Sputnik was launched, Congress those do not rip a big hole in the safety quiring some level of postsecondary passed the National Defense Education net for Americans. training, we have a significant skills Act, which helped put America back on I come from a working family. My fa- gap. In Minnesota—a State the Pre- ther was a millwright and a mechanic. siding Officer and I are proud to rep- top. This was actually the predecessor They weren’t sure how I would be able resent—70 percent of the jobs in the to the Perkins loan program, and it of- to go to college. They were determined next several years will require postsec- fered students low-interest loans to go that I would go. They raised me to be- ondary training. Yet only 40 percent of to school, with a preference for low-in- lieve in gaining the education nec- working-age Minnesotans currently come students. This was just the beginning. Soon we essary to have opportunities in life. have a postsecondary degree. Most of gave student loans to medical students, But they didn’t have the money. De- our States have similar skill gaps. spite the fact that I worked a job in The United States used to lead the created the Federal work-study pro- college, that wasn’t enough money. I world in the percentage of adults with gram, and in 1965 created the Guaran- got substantial grants, and that wasn’t a college degree. Today we are No. 16. teed Student Loan Program. This last enough money. I had to take out loans, If our Nation is going to prosper in a one was later renamed the Federal and I had to pay back those loans. The global economy and continue to grow Stafford Loan Program—which is what interest rates matter. economically, we need to provide path- we are talking about today—and it I say to my colleagues: End your fili- ways for students to attend and pay for made more money available to stu- buster. Come here as Senators, present college so we can close those skill gaps. dents to offset rising tuition. All this, your amendments, debate this bill, and A number of students are lucky really, because of Sputnik. if you don’t like the bill in the end, enough their parents can provide these Today, there are two main types of vote against it. But do not block this pathways for them and help pay for Federal loans. Subsidized Stafford debate on an issue of fundamental im- college, but most other students have loans are awarded based on need, and portance to the success of our children. to work—part time, maybe even full unsubsidized Stafford loans are avail- Madam President, I yield the floor, time. The Presiding Officer will appre- able to all students. The overwhelming and I suggest the absence of a quorum. ciate this. I had students from the majority of subsidized loans go to stu- The PRESIDING OFFICER. The MNSCU board—their top students— dents from middle and lower income clerk will call the roll. who came to visit me. I am sure they families. The Federal student loan pro- The assistant editor of the Daily Di- visited my colleague too. There were gram was created to open the doors of gest proceeded to call the roll. about 15 or 20 of them. They rep- higher education to more Americans Mr. FRANKEN. Madam President, I resented Minnesota’s colleges and uni- and provide them with stable, low-cost ask unanimous consent that the order versities. I asked them: How many of loans to pay for their education. And it for the quorum call be rescinded. you work at least 10 hours a week originally did so to help Americans The PRESIDING OFFICER. Without while going to college? All of them compete with the Soviet Union. objection, it is so ordered. raised their hands. I asked how many Well, we may have beat the Soviet Mr. FRANKEN. Madam President, I work 20 hours a week. Most of them. I Union, but we now face new economic ask unanimous consent to speak for 15 asked how many work 30 hours a week threats from rising powers such as minutes. while going to school. A lot of them. China and India. In our interconnected The PRESIDING OFFICER. Without And how many of you work full-time, world, in which it is easier than ever to objection, it is so ordered. 40 hours a week, while going to college? outsource, the quality of our workforce Mr. FRANKEN. Madam President, A number of them. matters more than ever before. So with yesterday our colleagues on the other That is no way to go to college. When college costs increasingly out of the side of the aisle stopped the Senate you work 40 hours a week, can you means of many American families, in

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.074 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3028 CONGRESSIONAL RECORD — SENATE May 9, 2012 2007 Congress decided to help lower and ary. You pay FICA on that amount so Madam President, I yield the floor. middle-income students by cutting the you can qualify for Social Security The PRESIDING OFFICER. The Sen- interest rates on the subsidized Staf- later on in your life. Then at the end of ator from Ohio is recognized. ford loans. the year, you get the passthrough of Mr. BROWN of Ohio. Madam Presi- The rates declined incrementally the other $260,000. You still pay income dent, I ask unanimous consent to speak over time to a low of 3.4 percent this tax on all $300,000 because it is all con- for up to 10 minutes. past year. But because this program sidered income. It is not capital gains; The PRESIDING OFFICER. Without was so expensive, the 2007 legislation it is still income, so you pay income objection, it is so ordered. would sunset on July 1 of this year and taxes on it. But because of an ambi- Mr. BROWN of Ohio. Madam Presi- interest rates for subsidized Stafford guity in the way the law is written, dent, I come to the floor to share some loans would double, going back up to you can avoid paying FICA taxes on letters I have received about the im- 6.8 percent. the $260,000. portance of freezing the 3.4 percent Allowing this to happen doesn’t Again, this money is indistinguish- Stafford subsidized college loan pro- make sense. Interest rates on mort- able from the so-called salary you took gram. gages and Treasurys are far lower than earlier. You could have paid yourself It is important because there are they were in 2007, when no one had any $30,000, so it could be $270,000 that you some 380,000 students in my home inkling of the turn our economy would harbor from FICA. State of Ohio alone who are in the take. No one could have predicted we All of this is active income you are Stafford subsidized loan program. would be experiencing near-record low making because of active work you Many of them will see as they continue interest rates and that it would make have done—it is not capital gains—so their college education—whether it is no sense to double them now to 6.8 per- you should pay FICA taxes on all of it. at Sinclair Community College in Day- There is simply no excuse for not pay- cent. Of course, the threat we face from ton or Youngstown State or Hiram Col- ing FICA taxes on all of your income— global competition has not waned in lege—where their costs are continuing Medicare taxes on all the income and the last 5 years. It is greater than ever. to go up. We know the average Ohio 4- Social Security taxes on up to $110,000. So with the July 1 deadline rapidly year college graduate has about $27,000 That is what anyone making $300,000 approaching, the time to act is now. in student loan debt. That is much would do except for this anomaly that Most high school seniors already have higher than people had a decade ago or was accidentally written into the Tax had to decide where they are going 20 years ago or 30 years ago or so when Code. This is exactly the kind of loop- next year, and now they are figuring my generation was in college. out how to pay for it. While students hole we should be closing. I hear all the time that we should be Federally subsidized student loans are wrestling with these tough deci- closing loopholes so we can keep the have been a reliable answer for so sions, it is not time for us to get into marginal rates down. If you can’t close many in my State. I wish to encourage a procedural fight here in Washington. this loophole, you can’t close any loop- people to tell their stories. Some of my I am hopeful we will vote again this hole. There is no reason this loophole colleagues in the Senate are doing this week to move the bill, and this time we exists. There is no good reason for it, also, but I urge people in Ohio to go to will put our differences aside and rep- there is no purpose to it, and there is brown.senate.gov/collegeloanstories, resent all the families in all of our no reason to keep it. It is an accident and tell your story about how impor- States who can use any bit of help we that results in people avoiding their tant this is. can offer them. rightful obligations. Our legislation The disappointment is that 5 years I am glad to hear my colleagues on would close the loophole for those indi- ago this was bipartisan. President Bush the other side of the aisle agree we viduals making over $250,000. signed a bill that many of us here spon- should stop the interest rate from Governing is about making choices, sored, in both parties, in a Democratic going up, and we agree we should be and this one seems as clear as day to House, Democratic Senate, a good bi- fiscally responsible and pay for it. We me. Save millions of Americans about partisan support, signed by a Repub- just disagree on how to pay for it. I am $1,000 for each year of schooling on lican President to lock in for 5 years proud to have joined a number of my their college loans by closing a tax this 3.4 interest rate. If we do nothing, colleagues in putting forward the legis- loophole that allows the wealthiest if we can’t get our Republican col- lation before us with a responsible, among us to avoid paying taxes they leagues to join us on this and then do commonsense offset. should pay and avoid gaming the sys- the same in the House of Representa- I think we can all agree that if you tem. It sounds like a no-brainer to me. tives to continue this 3.4-percent sub- are going to collect Social Security Instead, a minority of Senators is stop- sidized Stafford loan, it is going to and Medicare, it is only fair you pay in ping consideration of the bill because mean that come July, the average col- what you owe, and yet some people they object to closing this loophole. lege student will pay about $1,000 more have found a loophole that allows them They want to repeal a section of the for each year of college. That is uncon- to game the system using subchapter S Affordable Care Act that supports pre- scionable when college student loans corporations to avoid paying some of vention efforts. They want to eliminate are such a burden. their Social Security and Medicare the provision that helps stop diabetes It means people who have these loans taxes, some of their FICA. and other diseases before they occur, at this level, when they get out of Most small business owners are not the kinds of chronic diseases that are school they are less likely to buy a only honest but incredibly civic mind- driving our health care costs through house, less likely to start a family, less ed, and so they pay all the payroll the roof. This is simply shortsighted likely to start a business. taxes that they owe. Unfortunately, a and, frankly, fiscally irresponsible. If people will bear with me, I wish to small percentage of individuals have But I am ready to have that debate. read four or five of these letters I have found a loophole. Let’s have it here. Let’s debate the dif- gotten on our Web site. If you have an S corporation, which ferent ways to pay for this legislation. Nick from Beavercreek, OH: is basically a passthrough—which Let’s stop this filibuster and proceed to I am a college student at Xavier Univer- means at the end of the year the prof- consideration of the bill. Let’s work to- sity, Cincinnati, Ohio studying chemistry its are passed through to you as your gether to keep America on top and rise and biology. I hope one day, through my edu- income. If you have that, whatever to our generation’s Sputnik challenge. cation in the sciences, that I might be able profits you make at the end are consid- Millions of students are depending on to make us a stronger nation through inno- ered income by the IRS. So if you us. This bill will provide some relief to vation and technology. make $300,000 in 1 year, you pay income those students. Millions of businesses The fact of the matter is that I would not taxes on all of that. Either way, on this are depending on us to give them the be able to pursue an education if it were not you pay income taxes on all your in- for student loans from the Government. educated workforce they need. This bill On behalf of the future of science in this come. Here is the loophole: You decide, will take a small step toward helping country, which is in trouble already from I know what I am going to do. I am them as well. It is time to act. I call on what I hear, I urge you to reach a bipartisan going to pay myself an artificially low my colleagues to work with me to pass agreement that would prevent interest rates amount, $40,000, and call that my sal- this important legislation. from doubling.

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.075 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3029 It seems that student debt is unavoidable We are grandparents of 5 children. We and bipartisanly. It was bipartisan 5 years for the average college student. College al- our children are middle class constituents ago, as the highway bill used to be bi- ready is an expensive investment that shapes who live in a rural area close enough to Co- partisan, as raising the debt limit used our personal finances for the rest of our lumbus to commute. to be bipartisan. Please return to those lives. Please do not let the interest rate for the I ask that you, on behalf of those who are Stafford Loan increase in July. days when bipartisanship around here already burdened by debt, to find a way to Our oldest grandchild is preparing to start was rewarded and was effective. reach across the aisle on this one and stop college in the fall. She is fourth in her class I close by asking people to go to my interest rates from rising. and shows great promise for a good future in Web site and tell us your story: I ask that you find a way to lighten our her chosen field, but our children are finding brown.senate.gov/collegeloan stories. load. We would not forget that if you did that paying for college is really going to Tell us your story. I would like to that for us. We would greatly appreciate pol- stretch their budget. share it with my colleagues because I icy that opens up avenues to higher edu- Please don’t put a further burden on our think putting a human face on this for cation for ourselves as well as for those fu- grandchild by increasing the interest rate of the student, for the parents who are ture seekers of such an education. a loan she may need to finance her future. struggling, even for the grandparents Justin from Cincinnati, in Southwest So those last two are interesting in who care so much about the future, as Ohio: that this doesn’t just affect college stu- most of our grandparents do, can make I am the first person in my family to at- dents; this affects the parents; it af- a real difference. tend college and am on track to completing fects the grandparents. It is important I suggest the absence of a quorum. my BS in experimental psychology. I plan to that they don’t want welfare. They just The PRESIDING OFFICER. The go straight into a PHD program after I grad- want an even shot and a break here. uate and the prospect of loan rates doubling clerk will call the roll. is absolutely horrifying. That is so important for this grand- The legislative clerk proceeded to I work full time to be able to support my- mother. People understand that this is call the roll. self but still have about $15,000 in student going to help everybody if they get to Mr. SCHUMER. Mr. President, I ask loans. By no means does this compare to oth- go on to college. unanimous consent the order for the ers who have much more in loans but allow- The last one I will mention is Carla quorum call be rescinded. ing the interest rate to double is unaccept- from Steubenville in eastern Ohio, near The PRESIDING OFFICER (Mr. able and severely limiting to individuals the Ohio River: WHITEHOUSE). Without objection, it is such as myself. I am very concerned about the raising of so ordered. Lower tuition would boost the number of Mr. SCHUMER. Mr. President, we are students attending college making life bet- interest rates for student loans. ter for everyone. I am a mother in a middle class family still here. We have not gotten much of a response from our colleagues on the I don’t suggest that everybody should working to help put my sons through col- lege. other side of the aisle about our legis- go to college. I know everybody doesn’t I don’t expect a handout but I have worked lation that would help students want to go to college. But I do know hard to acquire my position as a teacher. throughout America pay their tuition that people often need a technical edu- My husband and I have exhausted our sav- costs and pay a reasonable amount of cation or a 4-year degree, a 2-year de- ings to pay for most of our sons’ expenses— interest on their loans. I don’t know gree at a community college or a tech- even with the support of subsidized and un- subsidized loans. what my colleagues are waiting for. We nical degree or a 4-year degree at a lib- all know the crisis in America. College eral arts school, a State university or a I have put out over $80,000 in my eldest son’s college. Please, let’s help those that has become more and more important. private school. The choices in my State help themselves. If not, then the economy is To many, it is a necessity, and it has are huge. We have literally dozens and going to continue to fail. become more and more expensive. That dozens of small liberal arts schools and The middle class will go bankrupt just try- equation is not only hurting the kids 4-year and 2-year community colleges ing to pay for their kids college. who go to college, it is hurting their and institutions of higher learning. I was taught to work and you shall receive families and hurting this country. Students should be allowed, if they but that is not true anymore. Please help the When the percentage of people who working poor. choose, to be able to have access to col- graduate from college declines vis-a-vis lege. Increasingly, it is more difficult What I take out of this more than other nations, that is a very bad sign for students to do that. anything is back in the 1940s and 1950s for America. We can talk about the Lorie from West Jefferson, OH: our government, through legislation problems of quality in our K–12 I am a full time working mother of three that President Roosevelt signed in 1944, schools, and those are important teenage boys as well as a full time college the GI bill, created a whole generation issues, but our higher education sys- student at Ohio Dominican University. of prosperity. Millions and millions of tem is still rating just about the best I currently have over $40,000 in student young men and women coming out of loans. I still have one more year to go before in the world. That is shown by the fact completing my program and earning my World War II were given the oppor- that hundreds of thousands from Bachelor’s degree. tunity to go to college and build homes around the world, including places such By that time my loan amounts will prob- and get their families started. as China and India, apply to our ably be around $50K. Because government at one time schools, come here and attend. It is a About the time I finish college, my oldest helped these millions and millions of shame we send them back even if they son will be beginning college and the student students, it lifted the entire country. It loan process will begin again. want to stay, but that is an immigra- He will be the first of three children that lifted the economy. We had a much tion issue not an education issue. we will put through college. more prosperous economy because all Our schools are great, and the big Listen to the definitive. She has de- these young men and women went to problem with higher education in cided she is going to make sure her college because they chose to—millions America is not quality—although, of kids get a chance to go to school right and millions of them—because of the course, it could be made better—it is away. I don’t know her, but apparently GI bill. It meant colleges were built. It affordability. It is not the same as K– she didn’t get a chance to go until she meant more highways were built. It 12. was older and became married, with meant more businesses were started Yet here we are, sitting here, and the children, and has decided to go back to after they got out of college. other side is in a certain sense school and is completing her education This subsidized Stafford Loan, as the twiddling their thumbs and making it as her children reach their teens or Presiding Officer this afternoon knows, worse. How is America going to stay the mid-teens or upper teens. as we all know, helping all of the hun- dreds of thousands—in my State greatest economic power in the world Low interest rates would help make this a little less of a financial burden for me and 380,000, in Minnesota more than 200,000 when fewer and fewer of our bright, ca- my family. students—helping those hundreds of pable, hard-working students can af- I do not see how raising interest rates on thousands of students in our two ford college and when more and more student loans do anything but cripple those States will help our States become of them decide they are not going to go trying to better themselves. more prosperous. to school or, if they go to school, not to The last couple I will read. Linda Again, I urge my colleagues to sup- the college of their choice for financial from Centerberg, OH: port our legislation. Lock this in. Do it reasons?

VerDate Mar 15 2010 04:35 May 10, 2012 Jkt 019060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.077 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3030 CONGRESSIONAL RECORD — SENATE May 9, 2012 We put a reasonable offer on the The PRESIDING OFFICER. The Sen- rules that are already in existence by table. The proposal is we pay for our ator Connecticut. closing a loophole. It is known as the college tuition act by closing a loop- Mr. BLUMENTHAL. Mr. President, I Gingrich-Edwards loophole. I wish it hole that people such as Rush am honored to follow my distinguished were not known by that name. But it Limbaugh said should be closed when colleague from New York and his very lets lawyers, consultants and highly John Edwards was found to have used powerful and eloquent words on a sub- paid professionals dodge payroll taxes it in his law firm, when other leading ject that concerns all of us, not only in and push that burden off on the middle Republicans in 2004 said this is one of New England but across the country. I class. the greatest abuses of the Tax Code have heard from countless students in Getting rid of this loophole is an- they had ever seen. All of a sudden our Connecticut where we have some of the other step toward an America where colleagues on the other side of the aisle best educational institutions in the everybody pays their fair share and ev- say they cannot vote for it. This was country. I know my colleague, Senator erybody plays by the same rules. It is an issue that was talked about as we SHAHEEN from New Hampshire, has the America that we grew up believing talked about dealing with the budget been very much in touch with the peo- in. It is the America that we continue gap in August or in December—during ple of her State, and particularly to believe in. Some have claimed that last year, whenever it was. Again, we young people there, striving—as they it is an America we have lost. I don’t did not hear objections from the other are in Connecticut—for more afford- believe it. We can prove it by closing side: Take that one off the table, we able education. this loophole. can’t live with it. We are talking about the future of The provision proposed by Senate It seems what is going on is very sim- our country. There should be nothing Democrats to close this loophole is ple. Our colleagues know that it is cer- contentious, certainly nothing partisan narrowly tailored to affect only tainly politically unpopular, but prob- about this issue of financing the future wealthy individuals, those making over ably it is politically wrong to allow in- of education and particularly student $200,000 for an individual or $250,000 for terest rates to double. But they can’t loans. This ought to be a common joint filers. They are trying to shield just say they are against it. They tried cause, and it ought to be bipartisan. I their salaries from taxes, calling them- to say they are against it, but when the believe eventually it will be because we selves small businesses. It will not af- President went around the country and need to come together on this issue for fect the actual small businesses of this talked about it they had to back off the sake of young people whose lives country, and it will not raise taxes for that. are very directly and immediately im- anybody who already pays what they So in the House they came up with a pacted by this issue in Connecticut and owe in payroll taxes. This loophole pay-for which was sort of laughable. across the country. The impact is not should be closed independent of the Everyone knew that would never pass, only on their lives but our competitive student loan crisis. We ought to close and no one took their position seri- economy, increasingly a global econ- this loophole regardless of the chal- ously. But we had always hoped that omy in Connecticut that depends more lenge we face now in keeping the inter- our colleagues in the Senate who, and more on exports and more and est rate at 3.4 percent. frankly, have been much more reason- more on talented and gifted and Very simply, we are being asked to able in the last little while—we passed trained, educated skilled people. We make a false choice—the choice be- a highway bill with bipartisan support, need them in Connecticut, and we can- tween accessible education and im- we passed a postal reform bill with bi- not permit the interest rate on Staf- proved public health. It is not a choice partisan support, we passed the Vio- ford loans to rise to 6.8 percent from its we have to make. Our long-term econ- lence Against Women Act with bipar- present rate of 3.4 percent. omy and, as a result, the Federal budg- tisan support, and we thought we could Even now the debt with the present et will both benefit if both of these get this done with bipartisan support. 3.4 percent is crushing to many of our goals are served and preserved. Our goal is not to draw a difference students who are struggling to pay There is an old saying that an ounce between the parties—that has been ap- their student loans with that lower in- of prevention is worth a pound of cure, parent—but to get this done. We terest rate. and that is supremely epitomized by thought when we put our proposal on Stanley Knotowicz—who contacted this situation. Last year an analysis in the Senate floor they would accept it. my office, who is seeking solutions in Health Affairs found that for each 10 At minimum we thought they would at good faith, constructively, and posi- percent increase in local public health least come back with an offer: Let’s de- tively—reached out to my office be- spending, the rate of infant deaths and bate it. Let’s try and see if their cause he experiences the same finan- death from diabetes, heart disease, and amendment passes in terms of a dif- cial hardships facing millions of recent cancer dropped significantly. Pre- ferent pay-for. Let’s see if our amend- graduates across the country. He is venting these deaths and the costly ment could get support. Instead, what paying $70 a week for gas. He is pro- treatment that precedes them could have we found? A filibuster blocking viding financial support for his grand- save the Federal Government large the Senate from even considering this mother in her late eighties who might amounts of money and improve the reasonable measure. lose her home. He is trying to save quality of life for countless Americans. I am going to yield the floor because money to get his own apartment. He is I urge my colleagues to come to- I see my colleagues have arrived, the one of the many students in Con- gether and recognize that preventive Senator from Connecticut and the Sen- necticut and across the country who health care is essential not only to the ator from New Hampshire, who I know have reached out and my office has future of this generation that will take have strong beliefs about this issue. We helped him. advantage of the 3.4-percent interest have an all-New England cast in the I have also heard from Brenda rate for their Stafford loans but other room, with a little help from the Mid- Kasimir, a mother who would be generations as well, generations whose Atlantic. crushed if she were forced to pay this they will be and generations who are I hope they will reconsider. I hope higher interest rate. Again, my office their parents. they will reconsider because it is better has helped her to meet the ever-in- This program is essential. The 3.4- for the politics of this country to come creasing challenge of today’s economy percent interest rate should not be a together once again on reasonable with that student debt that now, over- partisan issue, and we should be clos- issues, as we have done in the past few all, is the highest of any debts faced by ing this loophole regardless of the Staf- months. It is better, frankly, for their our people as a whole, more than $1 ford loan issue. But one way or the own politics. I am not wishing them ill. trillion. other, we should pay for it by closing But most of all, it is better for the fu- Senators REID and HARKIN want to the loophole and making sure students ture of our country. Please reconsider. come to a solution that will keep the have an affordable interest rate for Let’s move forward and debate this bill burden off the backs of students with- these Stafford loans. and let’s not let the high cost of going out adding to our national debt. It is I yield the floor. to college get unnecessarily higher. not a tax increase that they propose, it The PRESIDING OFFICER. The Sen- I yield the floor. is simply a solution that clarifies tax ator from New Hampshire.

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.079 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3031 Mr. INHOFE. If the Senator would shire. She told the Union Leader news- Our students deserve better. We need yield for a unanimous consent? paper that student loan debt has be- to get rid of any obstacles that are Mrs. SHAHEEN. I will yield. come a constant concern for her. keeping our students from getting the Mr. INHOFE. Mr. President, I ask Meghan says that her parents would do education they need to succeed. We unanimous consent that at the conclu- just about anything to pay for her col- should not put more obstacles in their sion of the remarks by the Senator lege education in full, but with two way. We need to come together, Demo- from New Hampshire, I be recognized brothers also in college the finances crats and Republicans, to stop this in- for up to 20 minutes. are simply not available. Meghan views crease in student loan interest rates The PRESIDING OFFICER. Without the prospect of interest rates doubling and to do what is in the best interest of objection, it is so ordered. as an attack on college students trying our families and our young people who Mrs. SHAHEEN. Mr. President, I am to make a better future for themselves. need that college education. pleased to join my colleagues from Sadly, she said it feels like it is a pun- Thank you very much, Mr. President. Connecticut and from New York and ishment for trying to obtain a college I yield the floor. others who have been on the floor degree. The PRESIDING OFFICER. The Sen- today to talk about the importance of When I was at Keene State College in ator from Maryland. addressing the—of avoiding, I guess I Keene last week, I met Keith Couch, a Ms. MIKULSKI. Mr. President, I am should say, the potential for the stu- parent who has a daughter at Keene proud to rise today to support the Stop dent loan interest rates to rise at the and a son at Boston College. Between the Student Loan Interest Rate Hike of end of June. The fact is that the U.S. his two kids, his annual tuition bill 2012. I cosponsored this bill because it workforce needs to have the skills to comes to $90,000. No wonder he is hav- extends the current interest rate of compete in the global economy, and ing trouble figuring out from where the 3.4% for subsidized Stafford Loans for that means making sure college is af- money is going to come. He spends the next school year. This interest rate fordable because so many of the new hours trying to figure out how his fam- reflects a record low for interest rates jobs that are being created require ily will make college payments each on Federal student loans, and these higher education. month. He said loans help bridge that loans can only go to students and fami- The reality is that students today lies that demonstrate a need for them; face ever-growing tuition rates, and gap. One constituent, Erin, posted on my nearly 50% of the students that take student loans are a critical bridge for Facebook wall that her husband re- advantage of subsidized Stafford loans them to cover these costs. But unless cently completed medical assistant come from families with an annual in- we act, over 7 million students—38,000 courses at Hesser College in Man- come of less than $50,000. Subsidized in my State of New Hampshire alone— chester. He is due to start paying his Stafford loans help more than 7 million who rely on subsidized Stafford student students attend an institution of high- loans will see an increase in their stu- student loans next month, but he hasn’t been able to find a job in his er education without worrying that the dent debt when they graduate. interest on their loans will begin ac- This is a particular problem for stu- chosen field. Erin said that family fi- cruing while they are in school. It dents in New Hampshire because our nances are tight and if interest rates helps more than 103,000 students in students have the highest average stu- were to double on the loans they have, dent debt in the Nation. They are grad- there is no way they would be able to Maryland. Middle class families are uating with just over $31,000 in debt per pay them back. feeling stretched and stressed and if we student. Not only do they have the The stories I have heard in New fail to act, students could be facing an highest average debt, but 74 percent of Hampshire are similar to the stories additional $1,000 in debt over the life of our college students are in debt, and Senator BLUMENTHAL told about Con- their loans. It is important to note that we will that is the second largest number in necticut and what Senator SCHUMER the country. So we have the highest has had to say about New York and not expand our Federal deficit, and we average debt and the second highest what we are hearing from students and will help families not expand the fam- number of students graduating with families across the country. Higher ily deficit, by keeping the interest rate debt. education is essential for economic op- at 3.4 percent. Senator REID’s legisla- Students in New Hampshire and portunity and personal growth. It is tion offsets the cost of this legislation across this country need some relief, equally essential to the prosperity of by closing a tax loophole enjoyed by in- and doubling the interest rate is ex- our country, and, most importantly, dividuals seeking to avoid paying pay- actly the wrong way we should be the prospect of higher debt levels af- roll taxes on their income. This would going in terms of policies to promote fects whether people choose to enter only affect those who make more than giving every American the opportunity college to begin with. $250,000 a year and simply requires peo- to succeed. We need to encourage our When I was in Plymouth last week at ple who make any income from a pro- students to go on to higher education, Plymouth State University, a student fessional service business such as lob- to advanced-degree programs, and to stood up and said: I want to teach his- bying to pay taxes if more than 75 per- professional schools. Their future em- tory. Tell me why I shouldn’t just drop cent of the income from that business ployment and our future economy both out of college and be a mechanic. I comes from three or fewer share- depend on this. said: Well, I like teachers myself, and holders. Last week I had the opportunity to we need more of them. But in this rap- I adamantly oppose the alternative visit with two of our State colleges, idly changing, highly competitive glob- proposal from House and Senate Re- Keene State College and Plymouth al economy, we should be doing every- publicans that would repeal the Pre- State University. Everyone I spoke thing we can to make sure college is vention and Public Health Fund au- with had stories about the escalating more accessible to Americans so we thorized by the Affordable Care Act. In cost of college and concern for rising don’t have students across this country the last year alone, that prevention student loan interest rates. Over the saying: Why shouldn’t I drop out if no fund has funded activities in my home past 24 hours I have heard from hun- one supports my getting a college edu- state of Maryland to promote tobacco dreds more constituents who are anx- cation? prevention, substance abuse preven- ious about this. It is critical for all of us, and, unfor- tion, mental health services, and com- Now, to be clear, the legislation we tunately, high debt burdens have seri- munity programs to promote healthy are considering would affect current ous consequences for individuals, for living. The fund is also used to invest and future students who will receive families, and for the economy. Student in childhood immunizations to de- subsidized Stafford loans starting July loan debt affects where graduates live, crease the risk of disease among chil- 1. The last thing anyone needs in this the kinds of careers they can pursue, dren. In the future, the President plans economic climate is a reason not to whether they can start a new business, to use this fund to support breast can- pursue their undergraduate or graduate when they can start a new family, cer screenings for more than 300,000 studies. when they can purchase a new home, women and cervical cancer screenings Meghan Jordan of Amherst is a soph- and when they can start to save for re- for more than 280,000 women. Repealing omore at the University of New Hamp- tirement. the prevention fund would not only

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.082 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3032 CONGRESSIONAL RECORD — SENATE May 9, 2012 strike an unnecessary blow to preven- pany Range Resources in Texas. The Congressman Oberstar over in the tion activities aimed to improve the EPA is not using its powers fairly and House introduced the Clean Water Res- lives of women and children, it would is showing its enforcement is arbitrary, toration Act. The Clean Water Restora- also promote increased health care unreliable, capricious, and unduly se- tion Act removed the word ‘‘navi- costs by eliminating strategic invest- vere. gable.’’ This act gave the Federal Gov- ments meant to prevent or mitigate But the Post’s editorial board didn’t ernment, through the EPA, the juris- chronic illnesses that can be expensive see Armendariz as an isolated incident. diction over the navigable water. That to treat. They also called out EPA’s actions in is what the law was. But they wanted Students will bless us if we are suc- another recent high-profile misuse of to take out the word ‘‘navigable’’ and, cessful in keeping their student loan power that has hurt the Agency’s credi- therefore, the EPA would have jurisdic- interest rates as low as possible. Get- bility. tion over all land in the United States. ting a college education is the core of The EPA insisted that an Idaho cou- It is very simple. It was so unfair that the American dream and I am going to ple, the Sacketts, stop construction on not only did we defeat the Clean Water be sure that every student has access a home because that violated the Clean Restoration Act but the people de- to that dream and make sure that Water Act. On March 21 the Supreme feated Senator Feingold in Wisconsin when they graduate their first mort- Court ruled unanimously—this was not and Congressman Oberstar, after they gage isn’t their student debt. This leg- a split decision; it was unanimous, 9 to had been in Congress for a long time. islation pending before us today should 0—that the EPA had exceeded its au- Obviously, this is something that is be passed in a swift, expeditious, thority in pursuing the Sacketts and not popular. It is an overreach and ev- uncluttered way. This bill is absolutely has ensured that they and other people eryone understands it. a great bill for students and it is a who find themselves in similar situa- Normally, when the Obama adminis- tration can’t achieve what they want great bill for America. It gives our stu- tions can overcome the EPA’s asser- to achieve through legislation, they do dents access to the American dream. It tion of whether or not their property it through regulations. We see this in gives our young people access to the contains jurisdictional wetlands, with- cap and trade right now. We saw the freedom to achieve, to be able to follow out submitting to the permit process. A mere 2 days later, the EPA was again President try to get legislation on cap their talents, and to be able to achieve and trade which amounted to a $300 bil- called out for overreaching its author- higher education in whatever field they lion to $400 billion tax increase on the ity on water issues. Then on March 23 will be able to serve this country. American people and it wouldn’t have I urge the swift passage of Senator the U.S. district court ruled that the done any good or helped anyone. Yet it EID’s legislation to maintain the cur- EPA overreached in revoking a permit R would have been the largest tax in- rent interest rate for subsidized Staf- to Arch Coal after the Army Corps of crease in history. I go back and com- ford loans. Engineers had already granted it. In pare it with what they were attempt- The PRESIDING OFFICER. The Sen- quite a blow to the Agency, the judge ing to do with the Clinton-Gore tax in- ator from Oklahoma. said EPA’s claim—and I am now crease of 1993. That is where they EPA quoting what the judge said in his raised the marginal rates, the capital Mr. INHOFE. Mr. President, first of order—‘‘that section 404(c) grants it gains tax, the death tax—this massive all, I will be introducing a bill in a plenary authority to unilaterally mod- tax increase—a $32 billion tax increase. minute called S. 3053, but as a predi- ify or revoke a permit that has been This will be 10 times greater than that. cate to that, let me talk again about duly issued by the Corps’’ is a ‘‘stun- Now they are trying to do what they my ongoing investigation of the over- ning power for an agency to aggregate couldn’t do with legislation through reach of the Environmental Protection to itself when there is absolutely no regulation. But that is because in order Agency. mention of it in the statute.’’ That is to undertake a Clean Water Act rule- Certainly the Washington Post is what the court said. making, EPA would have to follow a right-on with their editorial. On May 3, Yet, in the midst of scathing rebukes transparent process and engage in a the Washington Post editorial board from the press and the courts, the EPA public comment period as required by penned an editorial entitled ‘‘The EPA is still acting as if everything is the the Administrative Procedures Act. is earning a reputation for abuse.’’ In same as it was before these cases hap- For that reason, they didn’t pursue this editorial, they discussed how pened, and they are actively pursuing that through regulations. Given how former region 6 Administrator Al more regulatory power by attempting unpopular their proposal has been, Armendariz’s ‘‘philosophy of enforce- to vastly increase the scope of the going through with the rulemaking ment’’ has severely hurt the EPA. Clean Water Act’s reach. In fact, when would make it much more difficult to To refresh your memory, it was a discussing the results of the Sackett obtain the expanded Federal control couple of weeks ago at this very po- case at an American Law Institute- they are clearly trying to pursue. By dium that I read the quotes I am about American Bar Association event on changing agency practice in this for- to quote again today. While the Wash- May 3 of this year, Mark Pollins, Di- mal and nonregulatory way, they vir- ington Post doesn’t agree with me all rector of EPA’s Water Enforcement Di- tually ensure that they will be able to the time, I was pleased to read that vision, said, ‘‘Internally it is the same formalize this agenda easily through they saw that the ‘‘crucify’’ policy Mr. old, same old.’’ future rulemaking. So what they Armendariz purported in his visit to I plan to send a letter to Adminis- couldn’t achieve through legislation or, Dish, TX, clearly showed that he ‘‘pre- trator Jackson addressing Mr. Pollins’ in this case, through the proper rule- ferred to extract harsh punishments on comments and trying to find out how making process, they are trying to do an arbitrary number of firms to scare an EPA official, in the face of a 9-to-0 through guidance. others into cooperating.’’ Further, the Supreme Court decision, could say that What is even more frustrating than Washington Post editorial board saw the Agency is not going to do anything the EPA’s continued overreach is that this attitude as both unjust and threat- different. And if the EPA is able to fi- this new guidance would provide no im- ening to investors in energy projects. nalize its new Clean Air Act jurisdic- provement to water and would likely While Armendariz has resigned—he is tional guidance, it will have given hinder real progress on cleaning water. gone now—his statements have under- itself a whole new set of excuses for The guidance’s broad reach and legal- mined the legitimacy of the EPA’s reg- pushing the boundaries of the Clean istic language would inevitably shift ulatory authorities. We know that the Water Act as far as possible. This con- the balance of regulatory authority policy of extracting harsh punishment tinued overreach is why we now have further away from States, which are on arbitrary individuals in order to bicameral, bipartisan legislation intro- better equipped to protect waters with- scare others into cooperation was not duced to stop this current guidance in their borders. Giving the Federal just an inflated rhetoric. Mr. overreach. Government control over nearly all Armendariz followed through on his Let’s take a moment and go back in water features will not lead to cleaner philosophy when he had the EPA re- time to where this all started. We water. It will, however, lead to tremen- gion 6 pursue a trumped-up emergency might remember a couple years ago dous uncertainty, tremendous confu- action against the natural gas com- Senator Feingold from Wisconsin and sion, and economic pain for farmers,

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.060 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3033 energy developers, small businesses, stops the EPA from finalizing the guid- support. But if they want to join with and State governments by saddling ance and from using the guidance to us in preventing the rate hike, why in them with more layers of expensive, make decisions about the scope of the the world won’t they let us proceed to onerous, and unnecessary Federal regu- Clean Water Act or to turn it into a the bill? That will give us all the op- lations. It is yet another Obama ad- rule. The House has also acted with portunity to debate the bill and offer ministration policy that will be all chairmen and ranking members of the amendments. pain for virtually no environmental Transportation and Infrastructure and I call on my Republican friends, if gain. Agriculture Committees introducing they want to keep the interest rate Congress has been explicitly clear the bipartisan H.R. 4965. I applaud Mr. hike from doubling on students, to call with EPA that this new guidance is un- MICA and Mr. RAHALL in this bipartisan off the filibuster and let’s move ahead acceptable. Last July I wrote a letter, effort, as well as Mr. LUCAS and Mr. with the bill. I am not the only one along with Senator ROBERTS, the rank- PETERSON and Mr. GIBBS for their ac- who wants to end this obstruction by ing member of the Senate Agriculture tions. These bills do not change or roll our friends on the Republican side. I Committee, and 39 of our colleagues to back any current protections in the have heard from constituents in Iowa Administrator Jackson, where we Clean Water Act; they simply stop the who are frustrated at the Senate’s fail- raised our concerns that this document EPA and the Corps of Engineers from ure to act. This is a kitchen-table issue went far beyond mere guidance. EPA moving forward and making these un- for middle-class Americans, families and the Corps of Engineers greatly ex- precedented regulatory changes all across the country. panded what can be considered jurisdic- through a guidance document. I have heard reports that over 500,000 tional waters through a slew of new The EPA needs to withdraw this signatures from students around the and expanded definitions and through guidance document immediately. If it country have been delivered to the Hill the changes to the applications and ju- wishes to make changes to the Clean to show their support for keeping the risdictional tests. Water Act, it should go through a com- rate at 3.4 percent. I know many Sen- Administrator Jackson has said this plete and proper rulemaking process ators have come to the floor to share guidance will increase the Clean Water under the Administrative Procedures stories from their constituents about Act’s scope. In the economic analysis Act. That is why it is there, so people how the interest rate hike would affect that accompanied the guidance, it stat- in America will know the cost of what them. I will share a story I received ed that as few as 2 percent and as many these regulations mean to them and from an Iowa student. as 17 percent of the nonjurisdictional what they do and do not do. Why do it Dear Congressman, [or Senator, as the case determinations under current guidance may be] I am writing you on behalf of my- under the veil of guidance when they self, current college students, and future col- would be considered jurisdictional should be doing it out in the open? lege students everywhere. I recently re-en- using the expanded test under the new That is what we want. That is all we rolled in college to further my education. guidance. However, this analysis was are asking for. This decision came after much time and deep only for the Army Corps making I mentioned I am introducing a bill thought. The problem wasn’t that I didn’t dredge-and-fill permit decisions when today. want to attend school, it was whether or not compared to current practice. The (The remarks of Senator INHOFE per- I could afford to attend school. guidance will apply to the entire Clean taining to the introduction of S. 3053 I live on my own, hold a full time job that I previously attended a technical school to Water Act, including the National Pol- are printed in today’s RECORD under obtain. This job supports me fully, and as lution Discharge Elimination System ‘‘Statements on Introduced Bills and much as I love parts of my job, I know that permits, the Oil Pollution Act and Joint Resolutions.’’) my decision to re-enroll in school to further Spill Prevention Control, and Counter- Mr. INHOFE. With that, I yield the my education was the right decision for me. measure plans, water quality stand- floor and suggest the absence of a . . . In the middle of all of this prepara- ards, and even State water quality cer- quorum. tion, I came across an article in the USA tifications. Because most States have The PRESIDING OFFICER. The Today that said the Federal Government clerk will call the roll. might raise student loan interest rates. Not delegated authority under the Clean just raise, but double them, unless Congress Water Act, this change in guidance will The assistant legislative clerk pro- intervenes. also result in a change in the respon- ceeded to call the roll. I could not believe what I was reading, and sibilities of States in executing their Mr. HARKIN. Mr. President, I ask feel so passionate about the subject that I responsibilities under the Clean Water unanimous consent that the order for had to write a letter to you. I am already Act and a change in how individual the quorum call be rescinded. struggling on a daily basis to support myself. citizens are governed by law. The PRESIDING OFFICER (Mr. BEN- I live paycheck to paycheck and often have So what we are talking about is what NET). Without objection, it is so or- to rely on the savings account I worked so dered. hard to save before graduating high school, they have been unable to do with legis- along with consistent help from my parents lation they were going to be doing with Mr. HARKIN. Mr. President, yester- and grandparents. I wish to be independent regulation. But in this case, what they day Republican Senators voted to from this help even though I am thankful couldn’t do with regulation because it block the bill to prevent the doubling that it is there. would be too transparent they are try- of the Federal student loan interest This increase in interest rates on loans ing to do through guidance. rate on July 1. As long as they con- . . . was not only disappointing, it was infu- The finalized guidance document is tinue their filibuster, there is no clear riating to me. This will have an effect for currently at OMB for formal inter- way forward to prevent that dev- many years beyond what it should and not only for me. agency review before it is finalized. We astating rate hike less than 2 months I live in Stanwood, IA, a place that not don’t know what changes have been from now. many people have heard of, and I commute made, but based on a draft that was If that happens, more than 7.4 mil- the 35 miles to Cedar Rapids every day for leaked to the press, it doesn’t appear lion American students will be required my job. . . . that the document is substantially dif- to pay an average of $1,000 more per So when I saw that these loans that I am ferent from the proposed guidance doc- year of school. This is especially im- relying on to support me and fund my edu- ument they put out for public com- portant to my State of Iowa—and it is cation were going to double, I was heart- broken and I wonder what is wrong with my ment last May. This is the last step be- important to all States—where nearly country? I am very proud to be an American, fore this expansive document starts 72 percent of Iowa’s college graduates and more so an Iowan. . . . being used throughout the country, and have student loan debt, the fourth I believe that the one thing the USA has that is why I hope all my colleagues in highest percentage in the Nation. going for it: supporting our future, but that the Senate on both sides of the aisle Those borrowers are carrying an aver- is quickly fading in front of my eyes. I hope will join me in trying to stop it. age of $30,000 in student loan debt, that you read this and feel every ounce of disappointment in our great country as I do, Working with Senator BARRASSO, which is the third highest in the Na- and do everything in your power to not let Senator HELLER, Senator SESSIONS, tion. the interest rate on student loans increase and others, we introduced S. 2245. We In floor debates this week, Repub- on July 1. call it the Preserve the Waters of the licans claimed that they, too, want to I hope you can put faith in the American United States Act. It is a bill that prevent the rate hike. I welcome their students who are relying on these loans to

VerDate Mar 15 2010 04:35 May 10, 2012 Jkt 019060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.084 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE S3034 CONGRESSIONAL RECORD — SENATE May 9, 2012 educate themselves, and together get our nal, not mine] to avoid paying $591,000 into are the ones who have been going after country back on the right track, not headed the Medicare system. While making his for- this loophole for years. We said: Hey, down the wrong one. Thank you so much for tune as a trial lawyer in 1995, he formed what we finally have something on which we your time, and I hope to hear great things is known as a ‘‘subchapter S’’ corporation, can agree. The Wall Street Journal and from my representatives soon. with himself as the sole shareholder. Instead Sincerely, a proud fellow Iowan. of taking his $26.9 million in earnings di- all these other people are saying we This is just one of the many stories I rectly in the following four years, he paid have to close this loophole. We have have received from my constituents, himself a salary of $360,000 a year and took the opportunity to do so, and in doing telling me how detrimental it would be the rest as corporate dividends. so raise the money both to help Medi- Since salary is subject to 2.9 percent Medi- if the rate were to double on July 1. care and Social Security and to keep care tax, but dividends aren’t, that meant he the interest rates on student loans at This increase is a looming reality for shielded 90 percent of his income. That’s not many students and families if this Sen- 3.4 percent. Yet the Republicans will necessarily illegal, but dodging such a large not even allow us to bring it to the ate continues to do what it is doing— chunk of employment tax skates perilously and that is to do nothing to bring the close to the line . . . floor. So who is playing politics, I ask? bill up and having Republicans fili- CPA Magazine lists it as number 11 of its Who is playing politics? buster it, and not even letting us pro- 15 best underutilized tax loopholes. Well, as I have said before, and I will I ask, is the Wall Street Journal in ceed on it. say again, we have come here with a For the past 3 days, we have been favor of—what did they say?—hurting serious offset—one, as I said, that has hearing from Republicans that they job creators? Are they in favor of that? been supported—at least closing this want to keep the interest rate at 3.4 Is the Wall Street Journal in favor of loophole has been supported—by con- percent, but they don’t like how we are ‘‘raising taxes on the very businesses servative Republicans in the past. If paying for it in our bill. I have said we are counting on to hire these young anything, it is worse today than it was many times that if they don’t like people,’’ as the minority leader said on in 2004. More and more people are find- that—and our leader came out here, as Monday? I repeat, we limit it to only ing out about how they do this. They many have, saying, look, if my Repub- three shareholders. They are going to form this little subchapter S corpora- lican friends don’t like how we pay for count on them to hire these young peo- tion and avoid paying their taxes. It is it, let us get on with the bill and they ple, he said. What is the minority lead- time to close that. can offer their offset or pay-for. We can er talking about? That same year, in We came up with a serious offset we vote on it and they can vote on ours. 2004, the late conservative columnist thought would be acceptable on both But that is not acceptable to the Re- Robert Novak wrote: sides because of the history. We are publicans. They don’t even want the It is one of the last loopholes left in the In- ready to do this now—ease the concern bill to go forward. ternal Revenue Code, and it is a big one. of so many students and families We have been hearing from Repub- Here is the whole statement: across the country. The Republicans licans that our offset, which is closing How can John Edwards explain setting up came and wanted to pay for it by elimi- a loophole in the Tax Code that affects a dummy corporation—subchapter S—to nating the Prevention and Public subchapter S corporations—and I avoid paying an estimated $290,000 in Medi- Health Fund. They want to eliminate might add it only affects a very small care taxes in the 2 years before he ran for the the one thing that is going to prevent sliver of subchapter S corporations, Senate? This is a classic subchapter S cor- obesity, heart disease, stroke, cancer, very tightly drawn; they can’t have poration devised to shelter income, mainly and diabetes in the future and save us more than three shareholders. How for professionals, such as lawyers (and also a lot of money. They want to end that syndicated columnists, but not me). It is one about that. And you have to have more and take that money and put it into than $250,000 in income, and it pertains of the last loopholes left in the Internal Rev- enue Code, and it is a big one. keeping the interest rates low. They only to those subchapter S corpora- are pitting the low interest rates for That is Robert Novak. Has anyone tions that provide certain kinds of pro- students against the health care of ever questioned his conservative cre- fessional services. In other words, it children—immunizations for kids— dentials? doesn’t pertain to real estate, or manu- which is what we use this prevention Sean Hannity said this: facturing, or anything like that. It fund for. And for diabetes prevention. only has to do with certain profes- Hey, John Edwards is worth, what, $30 mil- That is what we use the fund for. They sional services, such as lawyers and ac- lion to $40 million, set up a sub-S corpora- want to take that away, pitting stu- countants, people such as that. tion to keep him from paying Medicare taxes on 90 percent of his income, and then he lec- dents against the health of our coun- Well, the Republicans say that if we tures the rest of us how Medicare is going try. That is not a serious offer. That is do this—close that loophole—it will broke. not a serious offer by the Republicans. hurt the ‘‘job creators.’’ How many Finally, Rush Limbaugh himself said That alternative is going nowhere. times have I heard that, job creators— this: Besides, the President has said he that we are going to hurt small busi- would veto that. So I ask my col- nesses. The other side would have you . . . and he [Senator Edwards] has also leagues on the other side to quit play- compounded that by structuring his own per- believe that we are doing this for polit- sonal finances to avoid paying Medicare ing politics. Quit playing politics with ical gain, that somehow we Democrats taxes on 90 percent of the nearly $27 million this. Let’s bring it up for a vote. are doing this for political gain. Well, he earned over four years. Maybe they should listen to the Wall Street Journal, and the now deceased if that were the truth, why would we I ask my Republican colleagues, are Novak and Fox News and even Rush pick an offset, a pay-for, to fix a prob- Robert Novak, Sean Hannity, Rush Limbaugh and Hannity. Let’s close this lem that conservatives have railed Limbaugh, and the Wall Street Journal loophole once and for all and do some- against in the past? Yes, the problem all in support of raising taxes? Are thing good with it. Let’s do something that we are trying to fix in subchapter they all in support of killing job cre- good with it. Keep the interest rates S corporations is a problem that con- ators? These are their statements. low for our students in this country. servative Republicans have railed That is the record. against in the past. I want to refresh Mr. President, I yield the floor, and I For the last several years, conserv- suggest the absence of a quorum. my colleagues’ memories and set the ative Republicans have been going record straight on this issue of S cor- The PRESIDING OFFICER. The after this loophole, until they obvi- clerk will call the roll. porations, the offset we have. ously found a Democrat who used it, For starters, in 2004, the Wall Street The bill clerk proceeded to call the John Edwards. Lots of people use it, a roll. Journal editorial page said this on July lot of lawyers and accountants and 13, 2004: Mr. REID. Mr. President, I ask unan- doctors. A lot of different kinds of pro- imous consent that the order for the Conservative Support for Closing the S fessionals have used this loophole to Corp Tax Loophole. quorum call be rescinded. Senator Edwards talks about the need to avoid paying their fair share of taxes. The PRESIDING OFFICER. Without provide health care for all, but that didn’t Here is another classic case where objection, it is so ordered. stop him from using a clever tax dodge the Republicans say we are using this Mr. REID. Mr. President, during the [these are the words of the Wall Street Jour- for political gain. Wait a minute. They day I flipped on the TV that we have in

VerDate Mar 15 2010 01:48 May 10, 2012 Jkt 019060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\CR\FM\G09MY6.085 S09MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 9, 2012 CONGRESSIONAL RECORD — SENATE S3035 our offices and looked at it as often as grams to stop heart disease. And, as we from Little York, IL, and he is known I could. I was very impressed with my know, there are programs now—mam- as the Flag Man. colleagues who came and talked about mograms, for example—that stop peo- Larry Eckhardt is not a veteran, and why it is so important that we not ple from having to get too far behind there are no servicemembers in his have an increase in the interest rate with the dread of breast cancer. That is family. But in 2006, Larry Eckhardt at- for student loans. I have been very their offset. We strongly oppose that tended a funeral for a soldier from his happy with my Democratic colleagues alternative, but we are willing to vote area who had died. He said, ‘‘There who have come here and made such a on it. We are not running from it. And aren’t enough flags here.’’ So on his profound case. But I listened also to once their proposal to slash programs own, Larry bought 150 American flags what the Republicans had to say, and it that save money and lives fails on a and started hauling them in his truck is beyond my comprehension how they floor vote—and it will fail—we Demo- to military funerals all across my can come to the floor with a straight crats are still willing to consider other State. As he puts it, ‘‘I just honestly face and say what they have said. I options to pay for this legislation. My don’t believe there’s any such thing as have listened as my Republican col- Republican colleagues on the other too many flags for a soldier.’’ leagues have come to the Senate floor hand have refused to consider alter- Larry’s inventory of 150 flags has to blame Democrats for stalling legis- native ways to pay for a bill they claim grown to 2,200 flags, and he can line lation to keep college affordable for 7 they support. them up to 14 miles of a fallen soldier’s million people throughout our great So I say to my Republican col- final journey. country. The claim is pretty rich con- leagues, let us bring this bill to the Traveling in his old 1999 Ford van, stripped down to one seat to make sidering that Republicans voted unani- floor. If Republicans are so interested room for all the flags, he has now mously yesterday to filibuster this leg- in negotiating a solution, they should graced more than 80 funerals from Wis- islation. What is a filibuster? It is stop- be willing to take that first step. Once consin to Kentucky and Iowa to Indi- ping us from going to the legislation. the bill is on the floor, we can debate ana and certainly in his home State of Our bill would prevent 7 million stu- it, we can amend it with an offset on Illinois. Last year, Larry drove 40,000 dents from paying $1,000 more on their which both sides can agree. But until miles with his flags to these funerals. loans. With college already Republicans end their obstructionist He covers all the costs out of his own unaffordable for far too many young filibuster, there is no path forward. pocket and a couple donations from people, Democrats believe we should be So for my Republican colleagues to friends. When asked why he does it, he doing all we can to provide access to come down here and say ‘‘we support simply says, ‘‘It’s my way of giving higher education. That is what these this legislation,’’ I repeat, what a back.’’ student loans are all about. strange way of supporting this legisla- Larry rarely uses the word ‘‘I.’’ He is Republicans have repeatedly claimed tion. quick to praise all the volunteers— they support efforts to support legisla- f often organized by veterans organiza- tion to keep loans from doubling this tions—who help him stake the flags in summer, but they sure have a funny MORNING BUSINESS the ground along the funeral proces- Mr. REID. Mr. President, I ask unan- way of showing it with this endless fili- sion routes. ‘‘Without them,’’ he says, imous consent that the Senate proceed buster. Today, Republicans have said ‘‘I couldn’t get them all done.’’ that Democrats should negotiate a way to a period of morning business, with In one instance over a long weekend, out of this stalemate—again, a very Senators allowed to speak for up to 10 dozens of volunteers helped Larry in- strange reasoning. It is hard to nego- minutes each. stall the 2,200 flags to honor a 23-year- tiate without a partner. The PRESIDING OFFICER. Without old Army sergeant during his funeral. Every Tuesday after we do our week- objection, it is so ordered. After the service, volunteers helped ly caucus meetings, I go to what we f pack up the flags for the next stop. call the Ohio Clock. One of the report- FLAG MAN LARRY ECKHARDT Volunteers ranged from kids as young ers said: Your Republican colleague as 3, assisting their parents, to an 83- Mr. DURBIN. Mr. President, I was in Senator MCCONNELL said you should year-old woman who wanted to help Tazewell County—which is in the area negotiate on this issue with Speaker out in Orchardville, IL. When she was of Pekin, in East Peoria, IL—last week BOEHNER. asked her reason for weathering the Now, how do you like that one, that at the Veterans Administration Com- tough January Illinois cold to help, she I, the leader in the Senate, should go to mission. said, ‘‘We can only bake so many tuna the Republican House and start negoti- I talked to a number of vets from the casseroles.’’ ating with them? That is a strange, Vietnam war and other conflicts. We This story is what America and the strange way of doing business. talked about obvious questions: vet- State of Illinois are all about. It is the The Republicans claim their only ob- erans’ unemployment, what was hap- common man, such as Larry Eckhardt, jection to our legislation is how it is pening with disability payments, edu- following his heart and taking the ini- paid for—by closing a tax loophole that cation for veterans, topics that most tiative to do something extraordinary allows wealthy Americans to dodge vets are very concerned about. They for our fallen heroes, and it is about a taxes they already owe. That is what face some pretty significant chal- community rising to the occasion to we feel should happen. We don’t believe lenges, as we know. lend its support and honor those who it is a tax increase—just that people We promise these men and women deserve so much of our gratitude. should pay what they are supposed to that if they put up their hand and Larry may have said it best when he pay. They now have a way of avoiding swear that they will risk their life for humbly stated: taxes. Rich accountants and lawyers America, we swear we will be there This is my feeble attempt to say thank you avoid it by claiming they are going to when they come home. It is that basic. to every soldier who has ever served and pay dividends and not ordinary income. We have to keep our word. As a nation, fought to protect the freedoms that I have. It is not fair to everyone else. we have a sacred pledge to take care of This speech on the floor of the Sen- So if the Republicans object to this, veterans who serve. I take it very seri- ate is my feeble attempt to say thanks fine. Democrats are willing to consider ously—I think both parties do—and we to you, Larry, and the countless Amer- alternative offsets. In fact, we are even should. icans just like you who step up and do willing to vote on the House Repub- We also need to honor those who their part to show our veterans how licans’ own proposed offset. Now, that have lost their lives. Just a few weeks much their service means to each and is a doozy, the offset from the Repub- ago, we buried another soldier from every one of us. They embody the en- licans coming from the House, which that county. There was a huge turnout during spirit and values that make takes away money for preventive care at the memorial service. One par- America great and they make me for virtually everybody. The leading ticular local resident was doing his proud to serve in the Senate and hum- causes of death in America are diabe- part to honor our fallen heroes in an bled to represent my State of Illinois. tes, heart disease, and cancer. They extraordinary way. I learned about him Thank you, Larry, and thanks to all want to take away preventive pro- when I visited Tazewell County. He is the other Americans who are doing

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