The Committee for a Democratic Majority

Kennedy ties helped secure waiver: Bosts Bay State healthcare law

It was the dog days of summer, and secret negotiations between Massachusetts leaders and federal officials had dragged on for months.

The word was that future funding for the state’s first-in-the-nation healthcare law looked bleak.

But then, something shifted in the talks. And now, four months later, state leaders are jubilant that Washington will send more money than most had dreamed possible to keep the state’s pioneering program afloat.

News of the $10.6 billion in federal aid arrived last week.

At a time when many other states are lamenting the lack of support from Washington for health programs, how was it possible for a state known for its liberal leanings to win such backing from a conservative administration?

An unlikely bond forged years ago between Senator Edward M. Kennedy of Massachusetts, an icon of the left, and US Health and Human Services Secretary Mike Leavitt, a conservative former governor of Utah, is part of the answer. The friendship set a collegial tone for the negotiations.

It was crucial in salvaging talks when the White House threatened to slash nearly $2 billion from the state’s health financing package, key players familiar with the negotiations said in interviews last week.

The package, known as a Medicaid waiver because it offers not only money but flexibility in federal regulations, allows Massachusetts to provide subsidized health insurance to some residents with incomes higher than would typically be allowed under traditional Medicaid rules. It authorizes Massachusetts to spend up to $21.2 billion, half of it federal money, over the next three years on health programs. That’s an increase of $4.3 billion over the state’s last Medicaid waiver package.

Leavitt, who oversees the agency that negotiated the waiver with Massachusetts, said he has privately sought Kennedy’s advice on reconciling Democrats and Republicans over health insurance issues.

"What I appreciate about him is he is unvarnished on what the political pressures on his side are and what needs to happen to progress," Leavitt said.

He traces their friendship to 2003, when President Bush nominated Leavitt to head the Environmental Protection Agency. Leavitt asked for Kennedy’s support, to which the Senator suggested Leavitt come to New Bedford to tour some polluted sites. Leavitt agreed and, after winning confirmation, visited the city.

"We are in different parties and have different ideas on the issues, but no one can fail to admire his devotion and that day, and others, formed the basis of our relationship," Leavitt recalls.

That friendship was tested in early June, when the Office of Management and Budget stepped into the waiver negotiations because, the regulators said, they discovered that Massachusetts for 10 years had incorrectly listed many children in its Medicaid program when they should have been counted under a program called the State Children’s Health Insurance Program, which is not funded by the waiver. The state’s way of counting those children had, by Washington’s estimate, given Massachusetts about

$2 billion more than it was entitled to over the last decade.

"We are talking about having to write a check for $2 billion and having to send it to the federal government," said Governor Deval Patrick. "It was a big problem."

The clock was ticking. Federal funding for Massachusetts’ last waiver package was set to expire June 30. Negotiations had hit an impasse.

That’s when Leavitt went to bat for Massachusetts, said a source familiar with the negotiations, calling Joshua Bolten, President Bush’s chief of staff and former director of the Office of Management and Budget, to argue the state’s case.

Kennedy also called Bolton from his cellphone on June 19, while en route to Hyannis Port from Boston, where he was receiving cancer treatments.

"We were all very conscious of his very personal challenges," said Dr.

JudyAnn Bigby, Massachusetts secretary of Health and Human Services, who helped negotiate the state’s waiver. "We wanted to respect the fact that even though he was very committed to this and we wanted to make sure he was kept informed about what was going on, that we would only use him when we needed him," Bigby said.

In his conversation with Bolton - and with $2 billion on the line - Kennedy suggested that if Massachusetts universal healthcare initiative was successful, it could be a model for the rest of the country, and a legacy for the Bush White House.

"The senator and Josh definitely did talk," said White House deputy press secretary Tony Fratto. "And Josh communicated to OMB the interest, and then they were able to work out their agreement in a way that was mutually satisfactory."

That agreement on the $2 billion difference came after several more weeks of tense talks, with Washington agreeing to extend the June 30 deadline. During that stretch, the normally restrained Leavitt posted on his blog a candid entry about a phone conversation he had with Kennedy.

"He sounded great! We talked briefly about his health. He was forward looking, crisp and as passionate as always," Leavitt wrote. "There wasn’t a single hint of negativity or worry. I’m sure he has moments when both creep in, but the call was an unexpected lift to my spirits."

Ultimately, Washington allowed Massachusetts to keep the disputed $2 billion but insisted that it change its accounting method.

So why was Washington so generous with the Bay State?

"We are all going to learn from what Massachusetts is doing," said Leavitt of the state’s innovative attempt at near-universal health coverage. "We will learn from things that don’t work and do work, and every state will benefit from what is going on in Massachusetts."

Kennedy was not available last week to talk about his role in the negotiations, but heralded the outcome in a statement: "Any reduction in commitment would have put our reforms at risk."

Final details of the agreement are being worked out and officials say a signed deal is expected soon. Health policy specialists underscored the unusual nature of the agreement, in the context of shrinking federal dollars.

"You have bad relationships between the states and the administration around Medicaid recently, and in the middle of an economic meltdown and an environment where the federal government is not looking to spend money, Massachusetts’ waiver stands out as truly unusual," said Drew Altman, president and CEO of the Kaiser Family Foundation, a nonprofit that researches and analyzes health policies.

Several other states are cutting back their programs to reform healthcare, Altman said, because of a lack of funding.

"That’s the reason Massachusetts, from a national perspective, is so significant," he said. The new waiver "allows the most sweeping health reform plan in the country to continue."

Kay Lazar can be reached a klazar@globe.com.

SENATE PASSES LEGISLATION TO GUARANTEE ACCESS TO STUDENT LOANS

Washington, DC-The Senate passed legislation today to guarantee that students will have continued access to the loans they need for college.  The legislation extends for one year Senator Kennedy’s Ensuring Continued Access to Student Loans Act, which was signed into law last May and has stabilized the student loan market, so that students currently attending college will have the resources they need to stay in college.  The extension means this needed financial assistance will continue to be available through the 2009-2010 college year.  The House passed the legislation earlier this week.

Melissa Wagoner, spokeswoman for Senator Edward M. Kennedy, released the following statement on today’s Senate action: "As the financial markets continue their downward spiral, Congress has taken action to guarantee ensure that college students will have the financial assistance they need.  Despite the turmoil on Wall Street, we must send the message to students and families that their college dreams won’t be ruined.  This legislation ensures that the loans students rely on to pay for college will continue to be available."

KENNEDY STATEMENT ON MEDICARE VOTE

WASHINGTON, DC— Senator Edward M. Kennedy, Chairman of the Health, Education, Labor and Pensions Committee, today released the following statement on the Medicare vote:

“I return to the Senate today to keep a promise to our senior citizens – and that’s to protect Medicare.  Win, lose or draw, I wanted to be here.  I wasn’t going to take the chance that my vote could make the difference.

Medicare should not be a partisan issue.  Illness and age know no party boundaries.  The 44 million Americans who rely on Medicare to meet their health care needs are both Democrats and Republicans.  Like all Americans, they have worked hard all their lives.  They’ve raised their families.  They’ve built our towns and cities and farmed the land.  They’ve served in our military. 

We owe them so much for the part they have played in making America a great country.  So today I proudly cast this important vote for them – a vote to keep the Medicare program strong and effective for the future.”

STATEMENT FROM THE OFFICE OF SENATOR EDWARD M. KENNEDY

STATEMENT FROM THE OFFICE OF SENATOR EDWARD M. KENNEDY
 
“Senator Kennedy is returning to his home in Hyannis Port today.  His doctors are pleased with his progress since surgery a week ago, and he will continue to recuperate at home before starting the next phase of his treatment.  He is thankful for the extraordinary care of the doctors and nurses at Duke, and also for the continued prayers and well wishes from the people of Massachusetts and all over the country.  In the interest of family privacy, there will not be regular updates regarding the Senator’s daily schedule or treatment plans moving forward.”
 

Against the Wind

This story was published in the Harvard Crimson today. 

Against the Wind
Published On 6/5/2008 5:01:19 AM
By ADAM CLYMER

For Americans of a certain age, Ted has been the Kennedy we saw grow old, in contrast to his martyred brothers, whom we remember for their vibrancy, and whose precluded later years we can only guess at. But for the majority who are too young to recall his brothers, he has been, as one interviewer put it to me last month, a symbol of permanence in politics.

For myself, it seems that I have been writing about him forever, back to when John F. Kennedy ‘40 was only a first-term senator and Ted was a starting end for Harvard, catching a deflected pass in a snowstorm for a touchdown against Yale.

Anyone covering Congress—as I did for much of 40 years—covered Ted Kennedy. He was always accessible to explain what he was trying to do, the obstacles, why compromise was needed to get anything done. Sometimes his syntax was too awkward to quote directly, as if his mind was moving faster than his mouth, but you knew what he meant.

Newspaper headline writers use the word "lawmaker" to describe members of Congress, most of whom can claim the title only by voting on bills. But Ted has made laws that changed the nation, building coalitions on issues from discrimination to campaign finance to health to education. I have covered a few of his failures, notably his attempts to enact national health insurance. But there were more successes, like the 1965 immigration bill that ended national origins quotas, the creation of the Children’s Health Insurance Program (now SCHIP) in 1997, and battles to raise the minimum wage. ("If you’re not for raising the minimum wage," he told a nervous colleague, John Kerry, in 1995, "you don’t deserve to call yourself a Democrat."

In the late ‘70s and ‘80s, as an editor in New York, I could only read and hear about his triumphs, fighting off the Reagan Administration’s attempts to retreat on civil rights and his legislative landmark, the Americans with Disabilities Act. Kennedy is a commanding orator, and I heard some of his greatest speeches. The best known is his 1980 Democratic Convention speech, when he promised that "the work goes on, the cause endures, the hope still lives, and the dream shall never die." In his health care speech in 1978, I heard him excite even the Carter supporters in the room when he attacked the President’s caution: "Sometimes a party must sail against the wind. We cannot afford to drift or lie at anchor. We cannot heed the call of those who say it is time to furl the sail."

While these speeches taught me much about him, I got to know Ted best in the ‘90s while writing his biography. In 21 lengthy interviews—except for Chappaquiddick, which he would not discuss—he answered every question, personal or political, that I asked.

How did a rich young man become so interested in the poor? He talked about his grandfather, Honey Fitz, and his concern about people down on their luck, and his "mother’s basic religious beliefs, Sermon on the Mount, and those obligations that we all had," especially the passage from Luke: "of everyone to whom much has been given, much will be required."

Why did he argue against Robert’s running for President? A key reason, he told me though he never said it to his brother, was the fear of a second assassination. "We weren’t that far away from ‘63, and that was still a factor."

But I learned about him from interviews with others, too. Kathleen Kennedy Townsend, Robert’s oldest child, told me that in the year following his death, her uncle Ted often called to talk about her younger brothers’ problems. He inspired, too. "He made it his mission, I think, to make sure we felt connected to my father and to John Kennedy."

He has also made it his mission to keep Harvard connected to President Kennedy. The Institute of Politics (IOP) is a living memorial to his brother. Its mission "to unite and engage students, particularly undergraduates, with academics, politicians, activists, and policymakers" mirrors the commitment to public service Ted’s own father set for his children. At the IOP, Kennedy has missed only two or three board meetings in 38 years; he speaks frequently, meets with students, and has them as interns in his office.

Harvard is an important part of his life. Ted made lifelong friends at college. Several worked with him early in his Senate career, and he goes to football games with them. At his 50th reunion in 2004, he spoke to his classmates about how the Senate has changed since he was first elected in 1962.

His other continuing Harvard connection is the faculty. He picks their brains, whether it is Robert Blendon on attitudes towards health care, David T. Ellwood ‘75 on poverty, Jennifer L. Hochschild on the American dream or many others on their particular expertise.

Ted made the Senate his life’s work in 1982 when he decided not to make a second try for the presidency. And for all the millions the Republican Party has raised by promising to protect the nation from him, he has made the Senate work by finding allies in the other party, from Howard Baker to Bob Dole to Lauch Faircloth.

Two weeks ago, when the presidential candidates joined other senators in expressing their sorrow at the news of his brain tumor, they shared a special reason: For the next president to get anything done, Kennedy’s talent at working across party lines is essential and exceptional. McCain, Obama, and Clinton know it.

His life has had its setbacks, personal and political. Perhaps the most memorable summing up came from an interview former President Bill Clinton gave me during his impeachment trial, describing Ted’s message in that troubled time. He said of the sailor who has always raced at his best in rough weather: "You couldn’t have a better friend. I mean, he is loyal. People have been loyal to him, and understanding, and he’s had to ask for forgiveness a time or two… His advice is always simple. It’s just sort of get up and go to work, just keep going, and remember why you wanted the job in the first place."

Best Wishes for Senator Kennedy

Senator Kennedy is resting comfortably after experiencing a seizure Saturday morning. If you would like to send your best wishes to him, please click here.

KENNEDY ON IMMIGRATION DETENTION HEALTH CARE

An urgent aspect of the immigration issue is the appalling lack of medical care available for immigrants held in custody of the Department of Homeland Security’s Bureau of Immigration and Customs Enforcement.   Senator Menendez and I have introduced legislation today, the Detainee Basic Medical Care Act of 2008, to require the Secretary of Homeland Security to deliver timely and effective medical and mental health care to individuals in its custody.

In the past week, the Washington Post, 60 Minutes, and the New York Times have documented the shameful state of medical care in immigration detention facilities.  Each day, approximately 33,000 immigrants, including those fleeing persecution and torture, are detained in facilities run by ICE or one of its private or local government contractors.  It appears that ICE and the Division of Immigration Health Services, the agency charged with delivering medical care to immigrant detainees, have engaged in a pattern of gross negligence and intentional cover-ups that shock the conscience.

The results have been predictable—in the past five years, at least 83 detainees have died in custody or shortly after release.  Thousands of others have been denied treatment, access to medications, and even the most basic compassion and decency in the custody of our government.

These are people who come to the United States from all corners of the world.  Some come to join family and others come in search of jobs.  Still others come as refugees.  Some may be eligible to remain in the United States, and others may be subject to deportation.  But at a minimum, they all deserve basic medical care in detention pending the outcome of their immigration proceedings, which can often take years.  None deserve a death sentence.

Congress has an obligation to act and the bill’s introduction is an important first step.  I urge the Senate to join Senator Menendez and me in expeditiously moving this legislation.  The range of other immigration challenges we face are complex, but this is different.  It goes to our basic responsibility to protect human life.  It’s a measure of our worth as a country and as a people, and we need to act.

KENNEDY PRAISES SENATE PASSAGE OF STUDENT LOAN BILL

WASHINGTON, DC—Senator Edward M. Kennedy, Chairman of the Senate Health, Education, Labor and Pensions Committee, issued the following statement on Senate passage of the Ensuring Continued Access to Student Loans Act of 2008:

“I’m grateful that the Senate has acted so quickly to pass this needed legislation.  The bill expands federal grant and loan assistance and reduces the reliance of students on high-cost private loans.  It also helps prevent the turbulence in the credit markets from blocking access by students and their families to low-cost federal loans by giving them additional options to obtain these loans,” Kennedy said.  “Millions of families are facing difficult economic challenges at every turn, with this legislation, their children’s college dreams won’t become the next victims of today’s troubled economy.”

Ensuring Continued Access to Student Loans Act of 2008

(As passed in Senate)

·  Increases the amount of federally subsidized loans available to students in order to reduce students’ reliance on higher cost non-federal private loans.

·  Provides parents with improved access to low-cost federal loans (PLUS loans) as alternatives to private educational loans and home equity lines of credit by—

o Allowing for deferral of repayments on parent PLUS loans until the student graduates from school; and

o Ensuring parents who are impacted by the mortgage crisis can still qualify for PLUS loans.

·  Ensures that students can access low-cost federal loans by stabilizing the private student loan program (FFEL program) by allowing the Department of Education to serve as the secondary market of last resort for loans originated in the FFEL program.  Allowing lenders to sell outstanding loans to the Department will free up lender capital to make new loans for the upcoming school year and keep lenders from dropping out of the program.

·  Ensures that students can access low-cost federal loans by shoring up the “lender of last resort” program already in law by—

o Allowing the Secretary of Education to advance capital to guaranty agencies to make these loans to students, if lenders won’t; and

o Making it easier for students to get these loans by allowing the Secretary to designate entire schools as “lender of last resort schools,” under limited circumstances where many students at a specific school are having trouble accessing loans (Senate bill sunsets this authority at the end of the 2008-2009 school year).

·  Decreases students’ reliance on loans to pay for college by using savings generated by the bill to expand eligibility for need-based aid.  100,000 more students will qualify for up to $4,000 per year in additional grant aid.  This provision was added to the bill by the Senate amendment.   

Recession Takes a Toll on America’s Women

Crossposted at The Huffington Post

Every American has been hit by the current economic recession in one way or another—home foreclosures, lost jobs, and rising costs of food, gas, and health care. But now it’s becoming clear that the recession is affecting one group particularly hard—women.

Last week the Senate Health, Education, Labor, and Pensions Committee released a report [PDF] that found America’s women are facing a perfect storm of economic risk. It found:

In contrast to previous recessions, in which women have typically fared somewhat better than men, this recession is hitting women harder than men. They are suffering more job losses and larger reductions in wages than the general population.

Like all workers, women are suffering from falling wages, rising prices, job fears, and housing troubles. But the effects of the recession on women have been more severe. The unemployment rate among women is rising faster than among men. Women’s wages fell six times the rate of men’s wages last year.

The housing crisis has also had a disproportionate effect on women. Despite their better overall credit scores, women are over 30 percent more likely to have expensive subprime loans, and are therefore much more likely to face foreclosure. Not surprisingly, many women are falling into bankruptcy at alarming rates. Single women, including those with children, account for 40 percent of all bankruptcies.

Making the problem worse, their current economic troubles are piling on top of the longstanding discrimination that women face in the workplace. Despite our equal pay laws, women earn just 77 cents for every dollar earned by men and have lower savings, fewer assets, and smaller pensions. Unmarried women in the United States have, on average, less than half the net worth of unmarried men.

Together, these problems have put many American women on the verge of financial ruin, and it will be very difficult for them to recover. That’s why Congress must take decisive action to help working families—and women in particular—cope with the troubled economy and create new opportunities for the future.

To start, we must make it clear there must be zero tolerance in the United States for pay discrimination. When women earn less than men, it makes them more vulnerable to economic downturns. To ease this burden, the Senate will act this week on the Lilly Ledbetter Fair Pay Restoration Act, an important bill to help them hold their employers accountable for pay discrimination.

A Supreme Court decision last May reversed decades of established law guaranteeing equal pay for equal work. Workers who have been illegally paid less have just 180 days from the discriminatory pay-setting decision to file a claim for the back pay they deserve. Such a requirement is patently unfair, since workers often do not find out for many months or years that their pay is too low.

The Fair Pay Restoration Act corrects this unfair ruling and protects millions of American workers from pay discrimination. You can help us pass this needed legislation by signing my petition calling for equal pay for equal work.

In addition to combating discrimination, we must also strengthen our nation’s economic safety net to deal with the modern reality of women’s lives and careers.

The unemployment insurance system, for example, does not live up to its promise for many women. Because of outdated eligibility requirements, only one-third of unemployed women receive benefits, although almost all workers pay into the system. It’s essential to make sure that all unemployed men and women receive the benefits they deserve. Dollar-for-dollar, it’s one of the most potent forms of stimulus for our economy.

Congress must amend current law to reflect the fact that women shoulder by far the greatest responsibility for child and family care. In these difficult economic times, few women can afford to lose a day’s wages—or even their jobs—to stay at home with a sick child. But many women face that impossible choice every day, since nearly half of private-sector workers don’t have even one paid sick day. The Healthy Families Act—which is currently pending in the Senate—would change that by guaranteeing seven paid sick days a year for most American workers.

We as a nation can get through this recession. But to do so, we must make sure that the livelihoods of all Americans—particularly women—are protected by sound laws and policies. With the economy so bleak today, now is the time for strong economic leadership by Congress to give hope and opportunity to all our nation’s working families.

KENNEDY ON PETRAEUS ANNOUNCEMENT

WASHINGTON, DC— Today, Senator Edward M. Kennedy released the following statement in response to the announcement that General David Petraeus will become the next commander of the U.S. Central Command.

“In his new position, General Petraeus will have a much larger regional and strategic responsibility especially as to how our mission in Iraq affects Afghanistan and our role in the Middle East as a whole. For too long, President Bush has pursued an open-ended commitment of our troops in Iraq, with no regard for the impact it has on them, their families or other critical national security challenges. That’s not a plan for success. It’s simply a delaying tactic to hand off the problem to the next President. I look forward to hearing the views General Petraeus has on these and other important questions during his confirmation hearing.”

KENNEDY COMMENDS ADMINISTRATION’S SUPPORT OF STUDENT LOAN PROGRAM

WASHINGTON, DC— Today, Senator Edward M. Kennedy, Chairman of the Health, Education, Labor and Pensions Committee, released the following statement in response to the letter sent by Margaret Spellings, Secretary of Education, Henry M. Paulson, Secretary of the Treasurer, and Jim Nussle, Director of the Office of Management and Budget, stating the Administration’s support of the student loan program amidst the credit crisis.

“I welcome the Administration’s support for prompt Senate action on our legislation to prevent the crisis in the credit markets from becoming a crisis for students and families already struggling to pay for college.  Obviously, we can’t allow access to college and the American Dream to depend on quarterly earnings of the nation’s banks.”

KENNEDY ON EQUAL PAY DAY, IN SUPPORT OF LILLY LEDBETTER FAIR PAY ACT

Today is Equal Pay Day. It is a time to rededicate ourselves to the core principle of equal pay for equal work, a principle at the heart of this nation’s commitment to fairness in the workplace.  When President Kennedy signed the Equal Pay Act in 1963, he reminded us that protection against pay discrimination is “basic to democracy,” and those words are still true today. 

Equal pay for equal work is a fundamental value for our nation.  Unfortunately, we continue to fall well short of living up to that goal.  Much of our nation’s workforce still puts in a fair day’s work, but goes home with less than a fair day’s pay.  Women, for example, bring home only 77 cents for each dollar earned by men. The pay gap also affects minority workers.  African-American workers make only 82 percent of what white workers make and Latino workers make only 72 percent of what white workers make. 

Tomorrow we will have the opportunity to do something about this gross unfairness when we vote on the Lilly Ledbetter Fair Pay Act to restore the basic protections against pay discrimination as part of our nation’s ideals of fairness and justice.

Fighting pay discrimination is not only about standing up for justice, it is also about addressing the real challenges faced by real Americans to make ends meet.  With so many workers struggling daily to provide for their families, pay discrimination makes their struggles even harder. 

It’s particularly important to focus on equal pay in light of the relentless economic bad news we’re facing.  All signs show that our economy is now in a recession.  We’ve lost almost a quarter of a million jobs in the first three months of the year.  The unemployment rate has climbed to 5.1%.  Workers are earning less, and losing the overtime hours they need to stay above water.  Those who are out of work can’t find a job.  And the mortgage crisis has put many in danger of becoming homeless.  Without doubt, we’re in tough economic times.

These problems mean even less money in workers’ pockets and more of a struggle just to get by.  In such dire times, workers and their families can’t afford to lose more economic ground – but that’s just what is happening to untold thousands of Americans who still face pay discrimination.

In a harsh combination of events, the groups most likely to face pay discrimination are also the most at risk in this recession.  Women are being particularly hurt by the recession.  In the past year, the unemployment rate among adult women workers has gone up more rapidly than for men – rising from 3.8% in March 2007 to 4.6% in March 2008 – an increase of 21% compared with a 15% increase among adult men.

The downturn has also caused women’s wages to fall significantly more than men’s.  In 2007, the real median wage for adult women workers dropped 3%, while the wages for adult male workers dropped half of a percent over the same period.  Women are also disproportionately at risk in the current foreclosure crisis, since women are 32% more likely to have subprime mortgages.

These distressing trends are especially serious for women, because they typically have less of a financial cushion to fall back on during hard times.  Lower wages for women means they make less over the course of their careers, and so are less able to save.  As a result, non-married women have a safety net worth 48% lower than non-married men, and women are less likely than men to save for retirement through work. 

At the same time that women are being buffeted by these negative economic trends, they are also being subjected to widespread pay discrimination.  In 2007, women filed more than 2,400 pay discrimination claims with the Equal Employment Opportunity Commission – more than any other group of workers protected by our pay discrimination laws. 

People of color are also victims of pay discrimination and the souring economy.  In fact, in 2007, there were more than 2,300 federal claims of race-based pay discrimination in our country.  The unemployment rate for African Americans has risen to 9%—almost twice the rate for the rest of the population. 

Latino workers have an unemployment rate of 6.9%—still significantly higher than for workers overall.  In addition, minorities are being particularly hard hit by the foreclosure crisis, because they are more likely to hold subprime mortgages.  In 2005 and 2006, more than 50 percent of all mortgage loans sold to African-Americans and 40 percent of those sold to Latinos were high-cost subprime loans.  

Like women, people of color, and other victims of pay discrimination, Lilly Ledbetter knows the toll that pay discrimination can take.  Her case demonstrates just how great the burden can be.  At the end of her career, she made 20% less than her lowest paid, least experienced male colleague and almost 40% less than her highest paid male colleague.  For Lilly, and other victims like her, the cost of pay discrimination over the course of a career is tens of thousands of dollars in lost wages.  Not only that, but her lower wages also mean her pension and Social Security benefits are lower.

The same is true for every victim of pay discrimination.  Over a career, discrimination can rob its victims of staggering sums.  For many workers today, that difference in pay can mean the difference between getting by and falling into financial crisis.  It could be the difference between being able to pay the mortgage and becoming homeless.  Or the difference between being able to keep one’s child in college or using the college account to pay household bills.  No worker should have to bear this burden at any time, but during an economic downturn it is particularly troubling. 

We will never make real progress in achieving our goal of fair pay for all Americans unless we vigorously enforce our laws against pay discrimination.  But the Supreme Court has thrown a serious obstacle in the path of workers who try to assert their rights.

The Supreme Court’s decision last May in Ledbetter v. Goodyear Tire & Rubber Company means that even more American workers will have to endure pay discrimination –  and won’t have the means to stop it.  The decision has undermined the ability of workers to hold employers accountable for pay discrimination.

Basically, the Ledbetter ruling says that if an employer can hide its illegal pay decision for 180 days, it is then free – year after year – to discriminate by paying women less than men, people of color less than whites, older workers less than younger ones, adherents of one religion less than others, and people with disabilities less than their coworkers, and these employees can never get relief.

Clearly, the rule leaves a gaping loophole in our civil rights laws.  Our legislation closes this loophole by making clear that as long as the discrimination continues, a worker’s right to challenge it continues as well.  There’s nothing radical about this, it simply restores the law that employers and workers had lived with for decades, until May 29, 2007, when the Ledbetter case was decided.  It makes no changes in the time limit on damages for back pay, which is still two years.

At its heart, this legislation is about fairness and decency and rewarding work.  Lilly Ledbetter wasn’t rewarded for her work – she was cheated and disrespected.  Too many hard-working Americans are like Lilly Ledbetter.  We shouldn’t make life harder for them by taking away their ability to demand fair treatment. 

This legislation will restore our civil rights laws and help Americans weather this economic storm.  I urge my colleagues to join me in supporting the Lilly Ledbetter Fair Pay Act.

KENNEDY ON RESTORING EQUAL PAY, CIVIL RIGHTS FOR ALL

The Lilly Ledbetter Fair Pay Act will ensure that the bipartisan equal pay laws enacted by overwhelming majorities in Congress do what they are supposed to do—protect workers against pay discrimination. 

Until last May, companies shortchanging workers because of gender, age, race, national origin, religion, or disability could be held accountable as long as the discrimination continued, no matter when the discrimination began.  Unfortunately, in a 5-4 decision last May, the Supreme Court misconstrued the Civil Rights Act of 1964 and the clear intent of Congress.  Under the Ledbetter decision, the time limit for filing a pay discrimination claim begins to run when an employer decides to discriminate – not whenever workers receive a discriminatory paycheck.  So if an employer’s discrimination action goes undetected initially, its illegal behavior can continue, and workers have no way to hold their employer accountable.  It’s like a get out of jail free card.  No one should have a free pass to violate our civil rights laws.

The pending bill will restore the fair and reasonable rule that applied until last May.  By enacting this legislation, we will restore the long-standing rule that the clock begins to run for filing a pay discrimination claim each time a worker receives a discriminatory paycheck – not the day the employer first decides to discriminate.

That was the rule applied by the vast majority of states and by the Equal Employment Opportunity Commission under both Republican and Democratic administrations until the Supreme Court’s ruling in the Ledbetter case last May.

Some who oppose this legislation have tried to create confusion about what the bill does.  I’ve heard some claim that it will open the floodgates to new litigation.  That couldn’t be further from the truth.  In fact, the non-partisan Congressional Budget Office reviewed the bill, and had this to say:

“The Fair Pay Restoration Act would not establish a new cause of action for claims of pay discrimination . . . .  CBO expects that the bill would not significantly affect the number of filings with the Equal Employment Opportunity Commission.”  So there will be no flood of new lawsuits if we pass this law, but there will be a fair rule for workers.

There will be no surprises with this legislation. It simply restores the law as it existed before the Supreme Court ruling.  Employers, workers, and the courts know exactly what to expect and how to apply the rule.

Some have also claimed that this proposal will force employers to pay damages on old, stale claims for events that occurred decades ago. That’s not true. Title VII of the Civil Rights Act of 1964 clearly states that employees can receive backpay for no more than two years before the date on which they filed a charge of discrimination.  Our bill reaffirms that this time limit will stay in place.  Employers will have no more liability in the future than they had before the Ledbetter decision.

There could be no clearer explanation for why this bill is necessary than the story of Ms. Ledbetter herself.  She is a working mother with two children, and she had served for almost two decades as one of just a handful of women supervisors at the Goodyear Tire & Rubber Company’s plant in Gadsen, Alabama.  It was not an easy job.  She worked twelve hour shifts, and her workday often stretched much longer.  As she told our Senate Committee, she often had to pitch in when other supervisors were away, and her workday sometimes stretched to 18 hours or even longer. 

She did it for her family, so that she and her husband could afford to send their children to college, and to retire in dignity.  She did it despite blatant mistreatment by her bosses, who resented having to work with a woman in a traditionally male job. 

After almost two decades of this work, Ms. Ledbetter finally realized that she had been the victim of pay discrimination.  The difference in pay was not small. It turned out that even the lowest paid male supervisors were earning 20% more than she was earning for exactly the same job, even though they had far less experience and seniority than she did.  The pay difference was magnified even further, because she was also shortchanged on bonuses, retirement benefits, and overtime pay, which were all tied to her basic salary.

The jury in Alabama that heard her case understood the basic injustice, and holds her employer accountable in its verdict.  There was no question whatever that Goodyear had discriminated against her.  But a narrow majority of the Supreme Court denied any relief at all for Ms. Ledbetter because she had not challenged the discrimination within 180 days after Goodyear first began the discrimination against her.

That result opened an enormous loophole in our equal pay laws.  The result in Ledbetter creates an obvious injustice, and Congress cannot allow it to stand. 

The discrimination she suffered for so long was shameful. We can’t undo what happened to her, or change the outcome of her case.   But we must not add insult to injury by failing to pass this bill to prevent such flagrant discrimination in the future.

Ms. Ledbetter realizes that this bill won’t benefit her. But she’s said this “I hope that   . . .  Congress won’t let this happen to anyone else.  I would feel that this long fight was worthwhile if, at least at the end of it, I knew that I played a part in getting the law fixed so that it can provide real protection to real people in the real world.”

That’s what our civil rights laws are all about – real solutions to the real problem of real discrimination.  We can’t afford to let the law move backward on this issue.  On all aspects of civil rights, there has been a march of progress over many years, and the great civil rights acts of the past half century have brought this nation closer to its ideal of fairness and justice for all.  It makes no sense to allow the Supreme Court or anyone else to reverse that march of progress. This issue is too important to the American people.

Over the years, the Senate has gone on record time and time again in favor of fairness and against discrimination. The original Equal Pay Act was signed by President Kennedy in 1963 to protect women from pay discrimination, and support for it was so strong that the bill passed the Senate by a voice vote. 

The landmark Civil Rights Act of 1964 is renowned for its ban on racial discrimination on public accommodations, but it also gave Americans other important protections, including the specific ability to hold employers accountable for pay discrimination. After a long and passionate debate, the Senate passed the bill by a vote of 73 to 27.

We went on record again in 1967 when we passed the Age Discrimination in Employment Act, to protect older workers from job discrimination.  That bill passed by a voice vote, representing the overwhelming bipartisan consensus of the Senate on the issue.

The consensus in favor of banning discrimination based on disability in federally funded programs and activities was so strong that the Rehabilitation Act of 1973 passed the Senate by voice vote.

In 1990, the Senate passed the Americans with Disabilities Act, to open a new world of opportunities for persons with disabilities. It passed the Senate by a vote of 91 to 6, and was signed into law by the first President Bush.

A year later, we passed the Civil Rights Act of 1991, by the overwhelming margin of 93 to 5, and it too was signed into law by the first President Bush.

Every one of those bills included provisions against pay discrimination, and every one of them passed the Senate with broad bipartisan support.  The bill we are considering now also has support on both sides of the aisle, and both Republican and Democratic cosponsors of the 1991 Civil Rights Act are among the original sponsors on the bill. 

The American people understand this issue. They understand what it means for someone like Lilly Ledbetter to work hard and play by the rules, and then be denied fair pay because of a misguided court decision.  We need to show the American people that we understand this issue, too, especially in these harsh economic times. 

What possible reason can someone have for voting against a narrow change to restore basic civil rights?  What’s the rationale?  Opponents have said it will cause new litigation, or that workers will delay, or that we should fix the problem some other way.  None of those arguments makes sense, but still the opposition persists. 

Some in the business community dislike this bill.  They’ve been handed a free pass in many cases of pay discrimination, and they don’t want to give it up.  But we can’t bow to a segment of the business community that puts profit above fairness. 

There are also businesses that support the bill, and so does the U.S. Women’s Chamber of Commerce.  The vast majority of companies play by the rules and treat their workers fairly, and they should support this legislation. 

In a letter to the Capital Hill newsletter “The Hill” earlier this year, Dr. Dorothy Height, the Chairwoman of the Leadership Conference on Civil Rights, and Margot Dorfman, the CEO of the U.S. Women’s Chamber of Commerce, emphasized Martin Luther King’s words that “Time is neutral.  It can be used either destructively or constructively.”  They said “Dr. King might not have been surprised to learn that, forty years after his death, the major battle about the nation’s civil rights laws was being fought over the issue of time,”  and they asked us to use time constructively by passing this bill. 

I urge my colleagues to support cloture on this bill, so that we can pass it now.  We must not fail to act.  Dr. King spoke of the great danger of inaction when he said that we will come to repent “not merely . . . the hateful words and actions of . . . bad people but . . . the appalling silence of . . .  good people.”  In the words of Dr. King’s immortal Letter from a Birmingham Jail: “The time is always right to do right.” Now is the time to correct this injustice of the Supreme Court’s decision in the Ledbetter case and restore the vitality of our laws against pay discrimination.

KENNEDY IN SUPPORT OF THE FAIR PAY RESTORATION ACT

Earlier this month, we honored the 40th anniversary of the death of Dr. Martin Luther King.  Each year on this anniversary we get together and speak glowingly of Dr. King’s life and work.  These words are important – make no mistake.  But even more important than honoring Dr. King with words, is honoring Dr. King with action.  Today, we have the opportunity to do that by passing the Fair Pay Restoration Act.  The right to equal pay for equal work is a fundamental civil right.  Indeed, Dr. King was in Memphis on that fateful day in April 1968 to protest pay discrimination against black Memphis sanitation workers. 

40 years later, we are still fighting the same fight as Dr. King.  We are still trying to empower workers to assert their civil rights.  Over the years, I have been proud to stand with a majority of the Congress for justice and fairness by passing strong, bipartisan laws against pay discrimination.  In 1963, we passed the Equal Pay Act.  We followed that in 1964 with the landmark Civil Rights Act, then the Age Discrimination Act, the Americans with Disabilities Act, and, most recently, the Civil Rights Act of 1991.  All these laws protect workers from pay discrimination and have made our country a stronger, better, and fairer land.

These laws are just words on the page of a law book if workers can’t get into court when their employers break the law.  To bring these words to life, we must today continue the work that Dr. King started.  This effort is necessary because last May the Supreme Court undermined the fundamental protections against pay discrimination.  In the Ledbetter decision, the Court imposed serious obstacles in the path of workers seeking to enforce their rights.

 Ledbetter was a textbook case of pay discrimination.  Lilly Ledbetter, whom I have had the honor to meet, was one of a few women supervisors at a Goodyear Tire and Rubber Company plant in Gadsen, Alabama.  She worked at the plant for almost two decades, consistently demonstrating that a woman can do a job traditionally done by men.  She put up with teasing and taunting from her male coworkers, but she persevered, and consistently gave the company a fair day’s work for what she thought was a fair day’s pay.  What she didn’t know, however, was that Goodyear wasn’t living up to its end of the bargain.  For almost two decades, the company used discriminatory evaluations to pay her less than her male colleagues who performed the same work.

 The jury saw the injustice in Goodyear’s treatment of Ms. Ledbetter, and awarded her full damages.  But five members of the Supreme Court ignored that injustice and held that Ms. Ledbetter was entitled to nothing at all, saying she was too late in filing her claim. 

Under the rule in the Ledbetter case, Ms. Ledbetter would have had to file her claim within a few months of when Goodyear first started discriminating against her.  Never mind that Ms. Ledbetter didn’t know about the discrimination when it first began.  Never mind that she had no means to learn of the discrimination because Goodyear kept salary information confidential.  Never mind that Goodyear’s discrimination against Ms. Ledbetter continued each and every time it gave her a smaller paycheck than it gave her male colleagues.

The rule imposed by the Supreme Court reversed decades of precedent in the courts of appeals.  It overturned the policy of the EEOC under both Democratic and Republican administration.  And it upset the nation’s accepted definition of what is fair and right.

The Court’s decision pulled the turned back the clock on civil rights.  Every year, thousands of workers suffer pay discrimination.  The Ledbetter decision will hurt workers alleging discrimination of every kind – sex, race, national origin, age, religion, and disability. 

The Supreme Court’s decision in Ledbetter gives employers free rein to continue to discriminate and leaves workers powerless to stop it.  This result defies both justice and common sense.  We must act to restore decency and fairness to our nation’s civil rights laws. 

The bipartisan Fair Pay Restoration Act will restore the clear intent of Congress.  It provides a reasonable rule that reflects how pay discrimination actually occurs in the workplace.  It links the time for filing a pay discrimination claim to the date a worker receives a discriminatory pay check, not when an employer makes a discriminatory decision.  Workers shouldn’t have to be mind readers in order to protect themselves from discrimination.  Workers who aren’t allowed to share information about their wages shouldn’t be rendered powerless to combat discrimination.  This bill recognizes that workers who receive a discriminatory check today should not be out of time to file a claim, simply because the employer managed to hide its illegal behavior initially.

This legislation holds no surprises.  It puts the law back to what it was on the day before the Supreme Court’s Ledbetter decision.  So, we know that this legislation is fair and workable.  There won’t be any unexpected consequences.  Courts won’t be overwhelmed.  In fact, the Congressional Budget Office has said that this bill won’t increase litigation costs by much.  And businesses won’t be blind-sided.

Most importantly, the Fair Pay Restoration Act makes employers accountable for violating the law.  Under the Supreme Court’s rule, if an employer can keep its discriminatory ways secret for 6 months, it gets a free pass.  It can continue to discriminate and its victims are powerless to stop the unfair treatment.  It only makes sense – if the violation continues, the right to challenge it should continue too.  No one should get a free pass to break the law.

The Supreme Court’s decision in Ledbetter took us backwards in time.  It takes us farther away from our ideal of a fair and just workplace for all Americans.  We have too much progress still to make – we can’t afford a step back.  With this legislation, we can at least make up the ground that we have lost. 

That’s why this legislation has such widespread support.  Civil rights groups, labor unions, disability advocates, and religious groups all support this legislation.  Many businesses also support the bill, including the U.S. Women’s Chamber of Commerce.  All companies that play by the rules and treat their workers fairly should support this legislation. 

Workers have lived for almost a year with the inequity of the Ledbetter decision.  It is time to stand up for the right to fair pay. 

As Dr. King said so eloquently after the passage of the Civil Rights Act of 1964:

Many people felt that after the passage of the civil rights bill, we had accomplished everything.  We didn’t have anything else to do and we would miraculously move into a new era of freedom. 

But when we opened our eyes, we came to see that the civil rights bill as marvelous as it is, is only the beginning of a new day and not the end of a journey. 

If this bill is not implemented in all of its dimensions, it will mean nothing, and all of its eloquent words will be as sounding brass on a tinkling cymbal.  We must take this bill and lift if from thin paper to thick action, and go all out, all over this nation, to implement it.

It is time to hold employers accountable for their unlawful conduct.  It is time to turn the clock forward on civil rights, instead of backwards.  It is time to pass the Fair Pay Restoration Act.

KENNEDY COMMENTS ON ECONOMIC CRISIS, IMPACT ON WORKERS

Speaks before the Massachusetts Building and Construction Trades

It’s a privilege and an honor to address the members of our Massachusetts Building Trades. You’re the ones who build our communities so well—our homes, our schools, our roads, our bridges, and our office buildings.  You’ve worked hard as well to build a better life for yourselves and your families in our Commonwealth. Now, we also need your help in rebuilding this great nation of ours.

The plain truth is that our country is headed in the wrong direction. Every day brings fresh evidence of the problem.

Our economy no longer works for working people.  Last month, employers cut 80,000 more jobs.  The total jobs lost this year is now 232,000.  

I don’t have to tell you that the construction industry has been hit especially hard, with 50,000 jobs cut in the last month alone, and this situation is likely to keep getting worse unless we act.

We know what needs to be done. It’s time to make our economy work again for Main Street, not just for Wall Street. Democrats understand that working people come first—that any recovery must start with helping those who built this country.

The first thing we must do is provide immediate help to families who are suffering.  We need to extend the duration of unemployment benefits, to help the nearly 8 million Americans who’ve lost their jobs and can’t find work.  These vital benefits help families stay afloat in this sinking economy.  They’re also a strong stimulus for the economy, as all economists agree.  It’s only fair that workers who have paid into the unemployment system year after year receive the support they need today when times are tough.  That’s why extending UI benefits is such a high priority for Democrats in Congress now.

We also need to jumpstart our economy by creating good jobs, with decent wages and benefits. The fastest way to do so is to invest in our country’s infrastructure. Tens of thousands of skilled construction workers are ready, willing and able to go to work—on billions of dollars of needed school, road and bridge repairs that could begin tomorrow. Every billion dollars we invest in such infrastructure creates as many as 47,000 new jobs.  These projects not only create jobs, they also boost the economy.  That’s why immediate action by Congress is needed to fund them. 

There are many other things we also need to do to help families make it through the current crisis. But you and I know that the problems facing working families have much deeper roots—and to address them, we need to take our country in a new and better direction. Democrats taking control of Congress was an important first step, and because of your support to get us there, we’ve already made significant progress. 

First, we’re continuing the fight to reverse the anti-worker, anti-labor, anti-union policies of President Bush and the previous Republican Congresses.  Defending workers’ rights – especially the right to join a union – is one of the most effective ways to fight for the middle class.

You and I know that unions make an enormous difference in the lives of millions of Americans.  Union workers earn 25 percent more than non-union workers.  They are more likely to have health care and other benefits, and they have greater job security.  In countless ways, unions make jobs good jobs.

No employees should have to fear losing their jobs if they want to join a union to bargain for a safer workplace, better benefits, and higher wages. That’s why I’m proud to be leading the fight to pass the Employee Free Choice Act.  Republicans have blocked us so far in this Congress, but we’re not going to let them win.

We also need to pass the RESPECT Act, Senator Dodd’s bill to restore collective bargaining rights for millions of hardworking employees in the building trades who have been unfairly labeled “supervisors” by their employers.  It’s time to give these workers back their voice in the workplace.

A critical next step is to end another type of worker misclassification.  Too many renegade employers, especially in the construction industry, improperly treat workers as independent contractors and cheat them out of the wages, benefits and protections they deserve.  When this happens, responsible contractors and working families lose out.  That’s why I’m fighting for legislation to level the playing field, and bring real help to countless workers and contractors whose employers refuse to play by the rules.

 We’re also fighting for worker safety.  It’s more than thirty years after passage of the Occupational Safety and Health Act, yet too many workers are still being killed and injured on the job – many of them in the construction industry. 

Even worse, we see more and more examples of employers with a history of problems that OSHA does nothing to stop.  Even when a worker is killed on the job, the employer often gets away with a fine of only a few thousand dollars. I’ve introduced legislation to end this lax enforcement and increase the penalties for employers who ignore the law.

Equally important, we need to continue to reject current Republican schemes to repeal the Davis-Bacon Act and its prevailing wage protections.  Last year, the GOP even tried to eliminate Davis-Bacon for the construction and repair of our nation’s bridges.  Thankfully for the safety of the American people and the protection of workers, we defeated them and proved that a clear majority of Senators support this important law.

The building and construction trades have been in the forefront of all these battles over the years, and I’m moved by all you’ve done.  You’ve brought millions of men and women together to create a better life for themselves, their families, and for all Americans.  In these difficult economic times, our country needs you more than ever. 

I know you’ll continue to be the strong and united voice of working families as we continue our battle for progress and fairness.  We need you to stand with us in our fight to take back the White House in November and expand our Democratic majorities in the House and Senate.  Believe me, we’ve only just begun to fight, and I look forward very much to success in November and the progress we’ll be able to achieve together in the years ahead.  Thank for all you do so well – thank you very much. 

KENNEDY ON CLIMATE CHANGE AS A CHALLENGE FOR PUBLIC HEALTH

In recent years, the public awareness and concern about climate change have reached unprecedented levels.  We’re learning what climate change means for the earth, with melting ice caps and the rising sea levels.  But important as that is, the issue is about much more than that. It’s also about us and our children and our grandchildren.  People in all countries will be affected by changes in the earth’s climate, and one of the principal consequences will be for our personal health.  We’re holding this hearing today because climate change will have a direct impact on health, and it’s time to pay attention to this problem.

In recent years, the world’s leading scientists came together to create the United Nations Intergovernmental Panel on Climate Change, to provide an objective source of information on this issue, and the importance of their work was recognized when they shared the Nobel Peace Prize along with Al Gore last year.

These experts tell us that our health is at risk because of the extreme weather events that will become more common and more severe in the future because of climate change.  Heat waves will lead to heat stroke and even death in vulnerable populations like the elderly. The heat wave in Europe in 2003 was responsible for 30,000 deaths.  Extreme heat will also raise ozone levels in places that already have high pollution, causing problems for people with allergies, asthma and chronic lung diseases.  Disease spread by mosquitoes, such as West Nile Virus, Dengue Fever, and Lyme Disease will increase, and affect parts of the country that have not experienced these problems before. Heavy rains and hurricanes will become more frequent, leading to more frequent flooding, contaminated food and water, and growth of dangerous mold.

That’s why public health must be a central part of the debate on climate change.  We know that vulnerable populations such as the elderly, the young, the poor, and the chronically ill will suffer disproportionately because they are the least likely to have the care and resources to deal with these changes.

That’s why the public health community needs to be involved in discussions about climate change.  This week is National Public Health Week, and across the nation public health officials and communities are holding events to draw attention to climate change as a major public health challenge. 

It’s important for the public to begin to making the connection between climate change and health, so that we start preparing now, when we have a better opportunity to do so.

Public health professionals have a central role in responding to this problem and protecting our health.  They are already leaders in spreading the message of prevention, and tracking and responding to emerging health threats.  Hopefully, this hearing will draw greater attention to the issue, assess how prepared we really are and suggest where we should focus our efforts.  Obviously, we can’t ignore the problem.

KENNEDY REACTION TO BUSH ON IRAQ

WASHINGTON, DC—Senator Edward M. Kennedy released the following statement in reaction to President Bush’s remarks on Iraq earlier today.

“It’s abundantly clear that President Bush is simply trying to “run out the clock” and hand off the mess to the next President.  Giving General Petraeus “all the time he needs” is more of the same open-ended commitment the American people have rejected.  It does nothing to force the Iraqis to take responsibility for their own future and make tough accommodations, and it breaks faith with our men and women in uniform who are bearing the heaviest burden of the President’s failed policy.”

KENNEDY ON 10TH ANNIVERSARY OF NORTHERN IRELAND PEACE AGREEMENT

WASHINGTON, DC— Senator Edward M. Kennedy released the following statement in remembrance of the 10th anniversary of the Good Friday Agreement in Northern Ireland.

“Today, we celebrate the 10th anniversary of the historic Good Friday Agreement, which put Northern Ireland on the path to reconciliation and peace after decades of violence, bloodshed and deep mistrust. 

 The people of Northern Ireland and the courageous leaders of the political parties in Northern Ireland, Ireland, and Great Britain, all deserve special recognition on this day for their deep and unwavering commitment to peace.  We salute them for their extraordinary accomplishment and difficult compromises they were able to achieve to create a greater and better future for the people of Northern Ireland.  Their success is an example to the world of what can be accomplished with courage and commitment.  

 The benefits and advances have been extraordinary over the past decade.   Guns are out of politics, and power is being shared on an equal basis.   Future generations in Northern Ireland will live in peace, stability and prosperity, and they will do so because of the extraordinary commitment by   leaders on all sides to a peaceful resolution of conflict based upon mutual respect for all the people.         

 All Americans congratulate the people of Northern Ireland on this auspicious anniversary.  They were truly blessed to have such extraordinary peacemakers among them, and we pray for similar leadership in resolving the other bitter conflicts that challenge our world today.”

KENNEDY ON STUDENT LOAN HOUSE MARK-UP

WASHINGTON, DC— Today, Senator Edward M. Kennedy, Chairman of the Senate Health, Education, Labor and Pensions Committee, released the following statement in response to the House Education and Labor Committee markup of legislation related to student loans. Chairman Kennedy introduced student loan legislation last week.

Senator Kennedy’s legislation would reduce students’ and families’ reliance on high-cost private loans by increasing federal aid and would take important steps to strengthen the student loan program.  Schools can ensure that students eligible for federally-backed loans can access them through the Direct Loan program, which does not rely on capital from the volatile private market.  The Senator has urged schools to consider this option to protect their students.  His legislation, however, also takes steps to strengthen the Federal Family Education Loan program to ensure that students can continue to access loans from private lenders if they so choose.  The bill provides an alternative capital source for lenders who need it to continue making federal loans, at a minimal cost to taxpayers. 

 “The turmoil in the credit markets has become a crisis for some lenders -the question for Congress is how to prevent it from becoming a crisis for students.”  Kennedy said.  “The ability of families to afford college should not be determined by the quarterly earnings of banks.  The legislation I introduced last week and that is being marked up by Chairman Miller today will ensure that students and families continue to have multiple options for securing the funds they need for college this fall, even if the situation should take a turn for the worse.  I am hopeful that the Senate also will act swiftly to enact these provisions to reassure students and families.”

 Summary of the Strengthening Student Aid Act of 2008

Senator Edward M. Kennedy

Reduce the need for students to depend on non-Federal, higher-interest private loans by—

·        Increasing annual limits on unsubsidized Federal student loans for dependent undergraduate students by $1,000 each year, with a new aggregate limit of $29,500 (up from $23,000).  Loan limits will increase as follows:

o       First-year students: $4500, up from $3500;

o       Second-year students: $5500, up from $4500;

o       Third-year and beyond: $6500, up from $5500.

·        Increasing annual limits on unsubsidized Federal student loans for independent undergraduate students and dependent undergraduates whose parents can’t obtain parent PLUS loans by $2,000 each year with a new aggregate limit of $57,500 (up from $46,000).  Loan limits will increase as follows:

o       First-year students: $9500, up from $7500;

o       Second-year students: $10,500, up from $8500;

o       Third-year and beyond: $12,500, up from $10,500.

Improve federal Parent (PLUS) loans so they are more attractive than private educational loans and home equity lines of credit by—

·        Allowing for deferral of repayments on parent PLUS loans while the student for whom the loan was taken out remains in school (currently, parents are required to begin repayment of PLUS loans within 60 days of loan disbursement, even if the student for whom the loan is taken out is still in school).

Reduce low income students’ dependency on student loan borrowing by—

·        Increasing Pell Grants for the lowest-income students by authorizing a “negative Expected Family Contribution,” which would allow the maximum Pell Grant ($4731 for the 2008-09 academic year) to be increased by up to $750 for students whose expected family contribution is calculated under federal needs analysis to be a negative number, and for those students whose expected family contribution is automatically determined to be zero.

Ensure the availability of Federal student loans by—

·        Requiring the Secretary of Education to designate guaranty agencies to be a Lender of Last Resort (LLR) on a school-wide level at the institution’s request. Currently, LLRs are provided to individual students who are unable to obtain a loan through the Federal Family Education Loan Program.  At many colleges, large shares of students have Federal education loans with the same lender. Colleges whose primary lender stops making new loans should have the assurance that a LLR will be ready to step in to offer loans to all of their students; and

·        Clarifying the Secretary’s authority to advance funds directly from the Treasury to LLRs, without needing a new appropriation by Congress.

Provide additional options for lenders to access capital to make new loans, should the credit market situation continue, by—

·        Allowing the Department of Education to serve as the secondary market of last resort for loans originated in the FFEL program.  Under this provision, the Secretary of Education would be required to buy FFEL loans that lenders want to sell, and would pay a price equal to par (100% of the outstanding principal and any accrued, unpaid interest on the loans) plus a premium equivalent to the cost of originating such loans in the federal Direct Loan program.  The terms and conditions on the loans would remain the same as they were when the borrower took out the loan, and the Secretary could contract with the same servicers who previously serviced the loans to ensure a seamless transition for borrowers.

KENNEDY ON 4,000 AMERICAN CASUALTIES IN IRAQ

KENNEDY ON 4,000 AMERICAN CASUALTIES IN IRAQ

WASHINGTON, DC— Today, Senator Edward M. Kennedy released the following statement in response to the announcement that 4,000 American troops have lost their lives in Iraq.

“America has passed another sad milestone today.   After more than 5 years in Iraq, the cost of this war in human lives continues to exact an excruciatingly high toll. As General Petraeus no doubt will testify next month, our troops have served with honor and distinction.  The question now is when will President Bush provide the answer that all Americans are waiting for:  ‘With 4,000 Americans having lost their lives, when will the national nightmare the Iraq war has become finally end?’”

KENNEDY ON EEOC ‘ENGLISH ONLY’ AMENDMENT PASSAGE

WASHINGTON, DC— Yesterday, Senator Edward M. Kennedy released the following statement in response to the passage of Senator Alexander’s budget amendment, #4222, which reduces the EEOC’s budget by $670,000.

“The amendment is a misguided attempt to undermine national origin discrimination cases involving English only workplace rules.  In fact, its broad terms will undermine the EEOC’s ability to deal with all workplace discrimination – including cases based on race, national origin, religion, gender, disability, and age, which have nothing to do with English-only cases.”

KENNEDY ON FDA BUDGET INCREASE

WASHINGTON, DC— Yesterday, Senator Edward M. Kennedy, Chairman of the Health, Education, Labor and Pensions Committee, released the following statement in response to the passage of budget amendment # 4148, which will increase the amount allocated for the FDA by $71 million, for a total increase for FY 2009 of $375.

“When American families go to the grocery store, they shouldn’t have to worry about the safety of the food they buy.  When they are prescribed a drug, they shouldn’t have to worry that a contaminant in the drug might kill them. They ought to be able to count on FDA to stand guard for them, use the latest and best science to protect them, and to do what’s needed to detect dangerous products.  I’m pleased that the Senate has made a big first step toward rebuilding the FDA.  By adopting my amendment, the Budget now includes an increase of $375 million for the FDA, the amount the FDA Science Board recommended for 2009.”

Summary of FY2009 Budget Resolution Amendment #4148

Filed by Senator Kennedy

To increase by $71 million the amount budgeted for the FDA, for a total increase of $375 for FY 2009

The Budget Committee’s budget bill increases FDA’s budget by $304 million. This amendment would increase the amount budgeted for FDA for fiscal year 2009 by $71 million, to make the total increase for FDA $375 million, the amount recommended by the FDA Science Board.  This proposed increase in FDA’s budget is offset by function 920.

In the fall, the FDA’s advisory Science Board issued a scathing report about FDA’s inability to fulfill its mission. 

FDA lacks adequate funds to ensure the safety of the Nation’s food supply and to maintain and develop the scientific expertise to review the medical products of tomorrow. 

FDA doesn’t inspect facilities that produce food with any frequency, and plants in China and India that produce drugs for the United States are inspected perhaps once a decade. 

FDA’s information technology systems are completely inadequate, as we learned most recently when FDA failed to inspect a factory that produces the drug Heparin. 

KENNEDY ON GONZALES DHS RESIGNATION

WASHINGTON, DC— Yesterday, Senator Edward M. Kennedy released the following statement in response to the announcement that Emilio Gonzales, the director of Citizenship and Immigration Services at the Department of Homeland Security, will resign on April 18th.

“The path to citizenship in our country is in crisis.  As we approach the election, over a million people who are qualified and eager to become citizens are stuck in line.  Many will be denied the right to cast their first ballots as American citizens this fall.  The President must commit himself to fixing this intolerable situation and he should start by choosing a strong and committed leader to take over this office.”

KENNEDY RESPONDS TO PRESIDENT’S REMARKS ON FISA

WASHINGTON, DC—Senator Edward M. Kennedy released the following statement in response to President Bush’s remarks on FISA this morning.

“Once again, the President continues to try to bully the Congress and mislead the American people on the Foreign Intelligence Surveillance Act.  He refuses to accept that under our system of government, neither the President nor the telecommunications companies gets to decide which laws to follow and which to ignore.

The President wants Congress to pretend that his administration did not conduct a massive, illegal, domestic warrantless surveillance program that was one of the most outrageous abuses of executive power in our nation’s history.  Rather than accuse Congress of playing politics, the President should stop playing politics with our national security.  He is the one who has repeatedly blocked extension of the law, insisting that the phone companies must be protected, even though he claims that American lives are at risk.

President Bush could not be clearer: his number one priority is that Congress sweep illegal his administration’s activity under the rug.  Congress must reject this outrageous demand.”

KENNEDY IN SUPPORT OF DEMOCRATIC BUDGET

Our budget puts working families first – not Wall Street, but Main Street America.

Long before the experts began sounding the alarm, working families knew that our economy wasn’t working for them.  They know that when the economy is wrong, nothing else is quite right.

Their mortgages were going up and banks were foreclosing on their homes.

Gas prices and heating oil prices were going through the roof.

College costs were escalating every single year.

Medical costs were soaring.

And now, they’re losing their jobs.

Businesses cut 63,000 jobs last month, on top of the cuts they made in January. This is the first time in five years that our economy has lost jobs for two months in a row.  These losses are a sure sign that the economy is falling fast into a recession.  Working families who are already living on the brink need help, and they need it now.

If we want an economic recovery that works, our efforts must start and end with working families.  The Democratic budget proposal does just that, making America’s workers our top priority.

Our budget may not provide all the answers, but it’s a good start.

Democrats know we need to jump-start the economy and help families in crisis.  We must help the millions of Americans pounding the pavement looking for work each day.  That means extending and improving unemployment benefits to help millions of workers transition to new jobs and boost our economy.  Our budget funds these benefits and other measures needed to help families struggling to make ends meet.

Our budget also creates hundreds of thousands of new jobs by investing in our roads, schools, and bridges.  3,000 of these projects are ready to go and will immediately create jobs for Americans with good wages and benefits.  These are jobs located right here in America and will lay the groundwork for our nation’s success in a new global economy.

Democrats also know we must make smart investments in renewable energy to ease the crushing burden of energy costs while creating hundreds of thousands of “green jobs” here in America.  Our budget makes these critical investments.

We also must equip our citizens – young and old – to compete and win in today’s global economy.

This budget starts with new investments in early childhood education, by increasing funding by over $400 million.

It helps every child move forward with new investments in teachers and in troubled schools.  It puts us on track to double funding for Title I over the next 5 years. 

With this year’s increase alone, our schools can:

Hire 35,000 new teachers to reduce class sizes and provide students with individualized attention;

Provide high quality professional development for 100,000 teachers to assist them in teaching 21st century skills; and enroll 1 million more children in high quality after-school programs.

And it strengthens our commitment to making college more affordable by providing funding for a $4,800 maximum Pell Grant – keeping our promise to increase the grant to $5,400 by 2012. 

This budget also includes $414 million more for job training programs, which is greatly needed after years of cuts in job training programs under this Administration.  This funding will allow 165,000 more workers to retool their skills for 21st century jobs.

By putting workers first, we can pump real dollars into the economy now and make sure that American businesses have access to a workforce unmatched anywhere in the world.  A recession may be upon us, but we know that bold investments in our workers today will mean a brighter future for our families tomorrow and in the years to come. 

KENNEDY ON PRESIDENT’S VETO OF ANTI-TORTURE LEGISLATION

WASHINGTON, DC—Senator Edward M. Kennedy today released the following statement on President Bush’s forthcoming veto of the Intelligence Authorization Bill.  The bill includes a provision requiring all U.S. government interrogations to comply with the Army Field Manual, which prohibits techniques widely regarded as torture, such as waterboarding, attack dogs, and electric shocks.

“According to the White House press secretary, the President will veto the Intelligence Authorization Act tomorrow.

President Bush’s veto will be one of the most shameful acts of his presidency.  Unless Congress overrides the veto, it will go down in history as a flagrant insult to the rule of law and a serious stain on the good name of America in the eyes of the world.

This bill is clearly needed to bring the CIA’s renegade “enhanced interrogation program” in line with the law and prevent the use of interrogation techniques that are torture by another name. 

As experts from across the political spectrum have recognized, the Army Field Manual is both good for the rule of law and good for our national security.  As the Manual states, “Use of torture is not only illegal but also it is a poor technique that yields unreliable results, may damage subsequent collection efforts, and can induce the source to say what he thinks the [interrogator] wants to hear.”

In a letter to our troops on May 10, 2007, General Petraeus himself stated that “our experience in applying the interrogation standards laid out in the Army Field Manual . . . shows that the techniques in the manual work effectively and humanely in eliciting the information from detainees.” 

Requiring all U.S. interrogators to comply with the Field Manual will produce better intelligence to pursue our enemies, end worldwide outrage at our interrogation practices, and protect our own personnel from torture.”

KENNEDY ON CREDIT MARKET SITUATION AND STUDENT LOANS

Americans are anxious about their economic futures. They’re seeing volatile markets, disappearing jobs, home foreclosures, rising debt, and declining benefits.  Now the crisis in the credit markets stemming from irresponsible lending practices in the mortgage industry may impact their ability to secure student loans at fair rates so their children can go to the college of their choice.       

We all know that student loans are critical for millions of students and parents trying to pay for college. In the last twenty years, as the cost of college has tripled, more and more students are relying on student loans to afford a college education. 

In 1993, less than half of all graduates had to take out loans, but in 2004, nearly two-thirds had to take out loans to finance their education.

The average student in the US graduates with more than $19,000 of student loan debt. 

Last year, we passed legislation that increased grant aid and ensured that federal loans were cheaper for students by cutting interest rates.  We also ensured that no graduate would have to pay more than 15% of their income in monthly loan payments and that those who enter public service will have their loans forgiven.  But these benefits will be meaningless if students cannot access the loans they need to be able to afford the college of their choice.

In recent weeks, the credit market crisis has made it more difficult for student lenders to secure capital.  This has increased the cost of lending, causing some lenders to pull out of the student loan market and causing those operating outside the federal loan program to cut back on lending to high risk borrowers.

Due to the attractiveness of the federal guarantee in the federally subsidized program—so far—other lenders are stepping up to fill in the gaps in that program. And the interest rates in that program are capped so students are protected from inflated interest payments.  

But students who need to go beyond the federal loan program will have a tougher time finding lenders and their rates will go up in the fall.   

Schools are beginning to sound alarm bells and telling students to get their loans now because they may be less available in the fall. 

We must take action to ensure that students have the resources they need to attend college.

We must ensure that the backstops built into the federal loan program designed to protect students and parents from the kind of credit market disruptions we’re seeing today are ready to be implemented. 

One of those backstops is the Direct Loan Program.  It allows students and parents to borrow directly from the Federal government – without going through a bank.  The Secretary of Education uses funds from the U.S. Treasury to make the loans.  This program does not rely on capital from the private financial markets, so it’s completely insulated from the disruptions the market is experiencing today. 

Current law also allows the Secretary to advance capital to designated “Lenders-of-Last-Resort” so they can step in if students are having trouble finding loans through other banks. 

These programs are already in the law.  And nearly 2,000 colleges are already either using or signed up to use the Direct Loan Program.  Last week, I wrote to Secretary Spellings urging her to take any necessary action to ensure that schools that rely solely on private banks can easily access the Direct Loan Program, and to ensure that procedures are in place to set up lenders of last resort.  I would like to ask unanimous consent that the letter be submitted for the record.

We must also ensure that students who are borrowing outside the federal loan program are protected.

A good first step is to make parents and students aware of their options.  According to the Department of Education, many students who turn to private loans – high-cost loans that are not subsidized by the federal government – are not taking advantage of the grant aid and low-interest loans they are eligible for under federal programs.  This is unacceptable.  We need to make sure college financial aid advisers are getting students the information they need to maximize student aid and get the best deals on their loans. 

We are currently in conference with the House on the Higher Education Act.  That bill will ensure that we do just that.   It will help students make the most of the college aid they’re eligible for by requiring lenders to disclose – on private loan applications and the documents they sign before a loan is made – that students may be eligible for grants from the federal government, their state, and their college, as well as lower-cost loans from the federally subsidized program.  We also require additional counseling by financial aid experts for students regarding their student aid options.

For families who need additional loans beyond federal loans while they are in school, we must ensure that they can access loans at affordable rates in the private markets.  We are working with our colleagues in the Banking Committee – led by that Committee’s Chairman – Senator Dodd – on this issue.  I plan to offer legislation that will expand edibility for low-cost government loans for these students.

In the coming weeks, the Committee that I chair which deals with education issues will convene hearings so we can hear directly from those affected.  We will also continue to monitor the Department of Education’s efforts to implement the existing safeguards in the federal programs. 

In today’s uncertain economy, Congress has an obligation to provide a steady hand and to shore up programs on which Americans depend.  Nothing could be more important than ensuring that families can afford a college degree.

KENNEDY ON DECLINING JOB NUMBERS

WASHINGTON, DC— Today’s jobs numbers show a loss of 63,000 jobs. Senator Edward M. Kennedy issued the following statement:

"The bad economic news continues to mount.  Today’s job losses—the worst in five years—emphasize the urgent need for more effective action. Extending and improving unemployment benefits is the best way to bring immediate help to the millions who are out of work and provide a much-needed jump-start to our economy.  Congress should have included this support in the recent stimulus law, and we should correct that mistake as soon as possible.”

KENNEDY ON UNEMPLOYMENT AND THE NEED TO HELP WORKING FAMILIES

In recent weeks, we’ve seen numerous warning signs that our economy is headed in the wrong direction.  Working families know better than anyone that times are tough.  They worry about putting food on the table, heating their homes, paying their medical bills, and paying their mortgages. Perhaps more than anything, they’re worried about their jobs. 

In today’s troubled economy, too many people are out of work, and too many others go to work each morning hoping they still have a job.  The unemployment rate is rising, and experts predict that it will keep on rising for months to come.  It’s already 7.6% in Michigan and 6.8% in Mississippi.  Ohio, Alaska, and South Carolina are all over 6% as well.

Workers who lose their jobs are having great difficulty finding new work.  18% of unemployed workers –1.2 million people – have been looking for a job for more than 26 weeks but can’t find one.  There just aren’t enough jobs to go around.

There are now nearly two unemployed workers for every job opening in the country.  That’s a far tougher job market than we saw before the last recession, and if history is any indication, we’ll see three or even four unemployed workers for every open job before things improve. 

Unemployment doesn’t just hurt workers, it devastates families.  It means months of pounding the pavement, knocking on doors, struggling without a paycheck.  It means choosing whether to pay your heating bill or pay the mortgage.  It means worrying about how you’ll pay for your son’s asthma medication, or telling your daughter you can’t afford to send her back to college. 

It’s not just individual families who are affected.  Unemployment hurts the country as a whole.  Unemployed workers have no money to spend.  Even those who still have a job are worried and cut back their spending.  It drags the whole economy down, and forces still more people out of work.  

Families lose faith in the American dream.  As the economy falters and families fall, the very fabric of society crumbles. 

We have to stop this crisis before it worsens, and that takes strong economic leadership. First, we have to strengthen the safety net for families struggling to find work.  Our outdated unemployment insurance system doesn’t provide enough support.  More than a third of unemployed workers run out of benefits before they find a job.  2.6 million people ran out of benefits in fiscal year 2007– before the recession even began.  And we know this number will continue to rise as the recession deepens.

That’s why I’ve introduced legislation to extend unemployment benefits for all Americans, and provide extra help for workers in high-unemployment states.  Extending benefits is an obvious measure that helps families in crisis, and it also gives an immediate boost to the economy.

But it’s not enough.  Too many people are left out of the system and don’t qualify for benefits, despite their hard work.

The current unemployment insurance system hasn’t kept pace with the changing economy.  Technology has changed, the workforce is more mobile, and temporary job losses have been replaced by long-term structural unemployment.  But the rules of eligibility for our unemployment insurance haven’t changed with the times.  Federal law hasn’t changed since the 1960s.  In 2006, only a third of unemployed Americans received unemployment benefits. 

Workers who paid into the system for years were left out when they needed help the most.&nb