[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, EDUCATION, AND RELATED AGENCIES APPROPRIATIONS FOR 2017 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION ________ SUBCOMMITTEE ON THE DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, EDUCATION, AND RELATED AGENCIES TOM COLE, Oklahoma, Chairman MICHAEL K. SIMPSON, Idaho ROSA L. DeLAURO, Connecticut STEVE WOMACK, Arkansas LUCILLE ROYBAL-ALLARD, California CHARLES J. FLEISCHMANN, Tennessee BARBARA LEE, California ANDY HARRIS, Maryland CHAKA FATTAH, Pennsylvania MARTHA ROBY, Alabama CHARLES W. DENT, Pennsylvania E. SCOTT RIGELL, Virginia NOTE: Under Committee Rules, Mr. Rogers, as Chairman of the Full Committee, and Mrs. Lowey, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. Susan Ross, John Bartrum, Jennifer Cama, Justin Gibbons, Kathryn Salmon, and Lori Bias, Subcommittee Staff ________ PART 5 Page Department of Health and Human Services........................ 1 Corporation for National and Community Service................. 185 Substance Abuse and Mental Health Services Administration...... 223 Department of Labor............................................ 295 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ________ Printed for the use of the Committee on Appropriations ________ U.S. GOVERNMENT PUBLISHING OFFICE 21-342 WASHINGTON : 2016 COMMITTEE ON APPROPRIATIONS ---------- HAROLD ROGERS, Kentucky, Chairman RODNEY P. FRELINGHUYSEN, New Jersey NITA M. LOWEY, New York ROBERT B. ADERHOLT, Alabama MARCY KAPTUR, Ohio KAY GRANGER, Texas PETER J. VISCLOSKY, Indiana MICHAEL K. SIMPSON, Idaho JOSE E. SERRANO, New York JOHN ABNEY CULBERSON, Texas ROSA L. DeLAURO, Connecticut ANDER CRENSHAW, Florida DAVID E. PRICE, North Carolina JOHN R. CARTER, Texas LUCILLE ROYBAL-ALLARD, California KEN CALVERT, California SAM FARR, California TOM COLE, Oklahoma CHAKA FATTAH, Pennsylvania MARIO DIAZ-BALART, Florida SANFORD D. BISHOP, Jr., Georgia CHARLES W. DENT, Pennsylvania BARBARA LEE, California TOM GRAVES, Georgia MICHAEL M. HONDA, California KEVIN YODER, Kansas BETTY McCOLLUM, Minnesota STEVE WOMACK, Arkansas STEVE ISRAEL, New York JEFF FORTENBERRY, Nebraska TIM RYAN, Ohio THOMAS J. ROONEY, Florida C. A. DUTCH RUPPERSBERGER, Maryland CHARLES J. FLEISCHMANN, Tennessee DEBBIE WASSERMAN SCHULTZ, Florida JAIME HERRERA BEUTLER, Washington HENRY CUELLAR, Texas DAVID P. JOYCE, Ohio CHELLIE PINGREE, Maine DAVID G. VALADAO, California MIKE QUIGLEY, Illinois ANDY HARRIS, Maryland DEREK KILMER, Washington MARK E. AMODEI, Nevada CHRIS STEWART, Utah E. SCOTT RIGELL, Virginia DAVID W. JOLLY, Florida DAVID YOUNG, Iowa EVAN H. JENKINS, West Virginia STEVEN M. PALAZZO, Mississippi William E. Smith, Clerk and Staff Director (ii) DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, EDUCATION, AND RELATED AGENCIES APPROPRIATIONS FOR 2017 ---------- Thursday, February 25, 2016. BUDGET HEARING--DEPARTMENT OF HEALTH AND HUMAN SERVICES WITNESS HON. SYLVIA BURWELL, SECRETARY, DEPARTMENT OF HEALTH AND HUMAN SERVICES opening statement Mr. Cole. Good morning, Madam Secretary. It is my privilege to open up the hearing. I just want to begin by telling you what a personal pleasure it is to have you here, and I mean that with all sincerity. I think you have--you are an exceptional public servant in your skill and your dedication and your bipartisanship. And so I look forward to working with you. We will certainly have some, you know, challenging questions for you this morning on both sides of the aisle, as we always do. But again, I know how seriously you approach the job and the effort that you put in, and I appreciate it personally very, very much. So my pleasure again to welcome you to the Subcommittee on Labor, Health and Human Services, and Education for our first hearing of the year. Looking forward to hearing your testimony. Madam Secretary, your responsibilities are many. There are many things in your budget that I think we can all agree are priorities and that we can collectively support. There are other areas we may disagree upon. The challenge that we'll be facing this subcommittee is how we can support the most critical programs and make the very best use of every taxpayer dollar entrusted to us. Unfortunately, your budget assumes many areas of tax increases, new user fees, changes in mandatory spending, and other spending sources that are beyond the purview of this subcommittee. I was especially disappointed to see your proposal to cut the National Institutes of Health. Your proposal to divert $1,000,000,000 of biomedical research funds to the mandatory side of the budget ledger and rely on new and perhaps unlikely authorizations to continue the advances we have made in increasing research funding were disheartening to me. I look forward to having a discussion with you this morning on the impact of these proposed cuts. I will also be asking some tough questions this morning about the ongoing management challenges at HHS. Problems of substandard quality in hospitals within the Indian Health Service and a continued slow-walking of investigations into alleged violation of the law as it relates to conscience protections continue to concern me greatly. I hope to learn more this morning on what you are doing to take positive steps in these areas. Finally, we are all keenly aware of the many external challenges facing your agency. The worldwide concern surrounding the Zika virus is but the latest example of this, and I hope you will be able to update us on this situation today as well. As a reminder to the subcommittee and our witnesses, we will abide by the 5-minute rule so that everyone will have a chance to get their questions asked and answered. Before we begin, I would like to yield the floor to my good friend from Connecticut, my ranking member, Ms. DeLauro. opening statement Ms. DeLauro. Thank you very much, Mr. Chairman. Can I first say that this is very impressive, the dais and the high-tech communication. But I am looking around the room and the redo here, I like it, but it is very beige, Mr. Chairman, and--but it is good. It looks good. It has got a nice tone to it. I deal with a little bit more color, but it is very good. It is calming. So, anyway, thank you again, Mr. Chairman. Madam Secretary, welcome back to the Labor, HHS Subcommittee. I believe it is exactly one year to the day since you last appeared here. I, too, want to express my gratitude for the great work that you do and the commitment that you have to the mission of health and human services, but also your commitment to this country and making sure that people are well taken care of. I want to thank the chairman. I think together we were able to make many great investments in the labor, health and human services bill last year. In many ways, last year's omnibus moved the Federal budget in the right direction, began to leave behind the shortsighted policies of austerity that have slowed our economic recovery. We made real progress on funding for NIH research, the antibiotic resistant bacteria initiative, medical countermeasures, and access to high-quality early childhood education. I do continue to be disappointed that we did not do better for other programs under the subcommittee's jurisdiction, and I am troubled that the labor, HHS bill received only a fraction, about one-half, of its fair share of the $66,000,000,000 increase provided by last year's budget deal. While the other non-defense subcommittees received an average increase of 6.9 percent last year, the labor, HHS bill increased by only 3.4 percent. In my view, that needs to change this year. One year ago, we were in the midst of a worldwide response to the Ebola outbreak in West Africa. Now we find ourselves confronting two public health crises, the Zika virus and the tragedy in Flint. First, the Zika virus, which may be causing thousands of babies in Latin America to be born with severe birth defects, is infecting travelers returning to the United States and is even being transmitted sexually. We should act quickly on the administration's request for emergency supplemental appropriations to defend against this serious threat. Some of my colleagues have expressed a desire to shift unobligated funds that Congress provided for Ebola to respond to Zika. I strongly oppose that idea. The threat of Ebola is not over. I would be anxious to know what activities we would have to forego if we shift funds away from Ebola to Zika. We need to be able to respond to multiple health threats at the same time, and Congress must act quickly to protect Americans from the Zika virus. At the same time, HHS is the lead Federal agency on the ground in Flint, Michigan, where we have learned that thousands of children have been exposed to lead poisoned water for more than a year. Not only did the State of Michigan fail to protect its people from lead poisoning, the Government created this crisis and magnified its effects with delayed response. I will just give you--this is from an article dated 9/25/ 05. This is Katrina. The reporter is Michael Ignatieff at Harvard. He said, ``The broken contract, it was not blacks or the poor, but citizens whom the Government betrayed in New Orleans.'' One can make the same application here, and he says, ``A contract of citizenship defines the duties of care that a public official owes to the people of a democratic society. It is a tacit understanding that citizens have about what to expect from their government. Its basic term is protection, helping citizens to protect their families and possessions from forces beyond their control.'' When the State made the decision to turn off the spigot and turn it on in the Flint River, they broke that contract with the people, and now it is our responsibility to provide people with the kinds of help that they need in order that they may succeed. It is imperative that we resolve the crisis immediately, provide health and education interventions that these children and their families will need going forward. And it is my hope that the State, the administration, and the Congress will do that. These emergencies demonstrate that our Federal system needs to respond more rapidly as threats arrive, which is why this Congress and last Congress, I proposed funding the Public Health Emergency Fund to enable the Federal Government to immediately respond to public health threats. It is modeled on the Disaster Relief Fund, which we have, which is $8,000,000,000. It enables a rapid Federal response following a natural disaster. If we can act quickly to respond to floods, fires, other natural disasters, we should be able to act quickly to respond to public health emergencies. We also need to strengthen our investments in HHS programs through annual appropriations, which brings me to the topic of today's hearing, your budget, HHS budget request for fiscal 2017. I strongly believe, as you know, that programs in the HHS budget are among the most important responsibilities that the Federal Government has. They support lifesaving research, State and local public health infrastructure, community health centers, and home heating assistance for low-income families. Literally, you work at saving lives. Madam Secretary, there are a lot of good proposals in this budget. Particularly, I applaud the President for his continued commitment to Head Start, child care, and preschool. I will say that I was disappointed to see cuts to cancer screenings and public health programs at the CDC and that funding for HIV research remains level at $3,000,000,000 for 2016 and 2017. I am also concerned that other important programs rely on mandatory funding. The budget includes $1,800,000,000 in mandatory funding for NIH research, $115,000,000 in mandatory funding to support early interventions for individuals with serious mental illness, and $500,000,000 in mandatory funding to help individuals who are addicted to prescription drugs and opioids. We need to increase this committee's allocation. That is the answer to this issue, to support NIH research, to address the opioid epidemic in this country, rather than relying on mandatory funding that may not materialize, which is why the subcommittee allocations that will be released next month will be so critically important. And I hope my colleagues on my side of the aisle and on the other side of the aisle will join us in making sure that we have an increase for Labor, HHS in 2017. And that is for the good of the children and good of the families that depend on these services. We need to make an increase in this allocation a priority. Thank you very much for being here and I look forward to the discussion and your testimony. Mr. Cole. Thank you very much. Ms. DeLauro. Thank you, Mr. Chairman. Mr. Cole. But before we begin with your testimony, we have been joined by our ranking member, Mrs. Lowey from New York. So I certainly want to recognize her for any opening remarks she would care to make. Mrs. Lowey. And I want to thank Chairman Cole, my good friend, and my good friend Rosa DeLauro for your hard work on this committee. It has been an honor for me to be part of this committee for a long time, for almost my whole congressional career, and we know how important this is. And this may be your last occasion to testify before this committee, and I want to first thank you for your service as Director of OMB, now as Secretary of Health and Human Services. And I must say if every person in Government would put their heart and soul and their brains to work the way you do, we would move forward much more quickly. So I really do want to thank you very much. It has been a pleasure for me to work with you and to know you. Now in terms of the substance, with recent emerging threats, your remaining year as Secretary will not be easy. Our mission to eradicate Ebola is not yet complete. New outbreak of dangerous diseases such as Zika are pushing Federal public health infrastructure resources to the breaking point. Congress has a request for supplemental funding to combat Zika. I urge this committee, and Congress as a whole, to meet this need without delay. While outbreaks require significant attention, we cannot turn our backs to manmade public health emergencies at home, and I struggle to find the words to describe the criminal incompetence that jeopardize thousands of American citizens in Flint, Michigan. I look forward to hearing about actions the department is taking in coordinating the Federal response to address the short-term and long-term healthcare needs that will be required. It is truly amazing to me because this is an issue I have been working on, again, for a very long time, and how this could have been ignored, the incompetence of the officials involved is really quite extraordinary. So I am hoping we can take action very quickly. The budget request includes increases for vitally important initiatives such as early childhood education, biomedical research, substance abuse treatment and prevention. As an appropriator, the department's requests for substantial sums in mandatory funding is of concern, particularly the fact that without this mandatory request, your budget amounts to a decrease in discretionary funding of 1.5 percent. With that said, there are significant improvements that I would like to highlight. One of the major obstacles to economic security for low-income working Americans is access to affordable, high-quality child care and early learning, such as Head Start. While this committee has increased funding for these initiatives in recent years, we are not meeting our commitment to the public. In fact, the value of Federal funding for child care has lagged well behind inflation and increases in child care cost. As a result, the Federal share for child care has decreased by approximately 20 percent since 2003. And there are more than 14 million American children that are eligible for child care subsidies, yet only 15 percent receive Child Care and Development Fund assistance. These funding constraints do not exist in a vacuum, and by not making investments in child care, hard-working parents may have to reduce their hours, leave their jobs altogether, or delay education programs that could allow them to invest in their family's economic security. An increase of $201,000,000 for child care is desperately needed, but this alone will not be enough. Federal support for child care and early learning programs for low-income Americans must be increased nationwide to meet this demand and chart our children on a path to success from an early age. Your budget includes targeted investments in biomedical research, which, to me, must continue to be a top priority. And I was so pleased with the work of this committee increasing the money for the National Institutes of Health. The Cancer Moonshot is very exciting, increases in the BRAIN Initiative that will deepen our understanding of the human brain to combat diseases and disorders, including Alzheimer's, Parkinson's, and autism. These investments not only fund research that eases suffering for patients, they could greatly reduce ballooning costs associated with treatment down the line. So, again, thank you for your leadership, and thank you to the chair and our ranking member for your important work on this bill, and I look forward to your testimony. Thank you, Mr. Chairman. Mr. Cole. Thank you. It is always a pleasure when our good friend is able to join us. And with that, Madam Secretary, the committee would love to hear your testimony. OPENING STATEMENT Secretary Burwell. Great. Thank you so much. Mr. Chairman, Ranking Member DeLauro, Mrs. Lowey, and members of the committee, I want to thank you all for this opportunity to discuss the budget of the Department of Health and Human Services. I think, as many of you know, I believe that all of us share common interests, and therefore, we can find common ground. And last legislative session, as has been mentioned, this Congress made timely investments in programs to improve the health and welfare of the American people, and thank you for the role that you all played in that. The budget before you today is the final budget for this administration and my final budget. It makes critical investments to protect the health and well-being of the American people. It helps ensure that we can do our job to keep people safe and healthy. It accelerates our progress in scientific research and medical innovation and expands and strengthens our healthcare system, and it helps us continue to be responsible stewards of the taxpayer dollars. For HHS, the budget proposes $82,800,000,000 in discretionary budget authority. Our request recognizes the constraints in our budget environment and includes targeted reforms to Medicare, Medicaid, as well as other programs. Over the next 10 years, these reforms to Medicare could result in a net savings of $419,000,000,000. Let me start with an issue that we have been working on here at home and abroad, and as we work aggressively to combat the spread of Zika, the administration is requesting $1,900,000,000 in emergency funding, including $1,500,000,000 for HHS to enhance our ongoing efforts, both domestically and internationally. We appreciate Congress' consideration of this important request as we implement essential strategies that are time-sensitive to prevent, detect, and respond to this virus. I know the rise in opioid misuse and abuse and overdose has affected many of your constituents. Every day in America, 78 people are dying of opioid-related deaths, and that is why this budget proposes a significant increase in funding, over $1,000,000,000, to fight the opioid epidemic. Research shows that early learning programs can set a course for a child's success throughout his or her life, and that is why over the course of this administration, and together with congressional support, we have more than doubled access to Early Head Start and services for infants and toddlers. Our budget proposes an increase of $434,000,000 for the Head Start program and an investment in child care services that would allow us to serve over 2.6 million children. Today, too many of our Nation's children and adults with diagnosable mental health disorders don't receive the treatment that they need. So the budget proposes $780,000,000 in new mandatory and discretionary resources over the next 2 years to try and close this gap. While we invest in the safety and health of Americans today, we must also relentlessly push forward on the frontiers of innovation and research. Today, we are entering a new era in medical science. With a proposed increase of $107,000,000 for the Precision Medicine Initiative and $45,000,000 for the administration's BRAIN Initiative, we continue that progress. But for all Americans to benefit from these breakthroughs in medical science, we need to ensure that all Americans have affordable healthcare. And the Affordable Care Act has made progress, historic progress, in that space. Today, more than 90 percent of Americans have health coverage. That is the first time in our Nation's history that that has happened. The budget seeks to build on that progress by improving the quality of care that patients receive, spending our health dollars more wisely, and putting an engaged, empowered, and educated consumer at the center of their care. By advancing and improving the way we pay doctors, the way we coordinate care and use health data and information, we can build a system that is better, smarter, and healthier. Finally, I just want to thank the employees of HHS. In the past year, they have helped end the Ebola outbreak in West Africa. They have advanced the frontiers of medical science. They have helped millions of Americans enroll in health coverage and have just done the day-to-day quiet work that makes our Nation healthier and stronger, and I am honored to be a part of that team. As members of this committee, I think, know, I personally am committed to working with you all closely, with you and your staff, to find common ground so that we can deliver impact for the American people. And with that, I welcome your questions. Thank you. [The prepared statement and biography of Secretary Burwell follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] MANDATORY PROPOSALS IN FY 2017 BUDGET REQUEST Mr. Cole. Thank you very much, Madam Secretary. And again, it is a pleasure to have you here. The President's budget is being touted as adhering to spending caps agreed on last year, but it does so by the inclusion of gimmicks which shift funding onto the mandatory side of the budget ledger. For example, as you know and has been mentioned here actually by both sides, NIH discretionary level is reduced by $1,000,000,000 from fiscal year 2016 levels. Let me just tell you up front that is not going to happen. We are not going to be cutting $1,000,000,000 out of the NIH, and frankly, we are unlikely to be able to get mandatory funding of $1,800,000,000. Again, we have no jurisdiction in that area, but I will make a prediction that we are unlikely to be able to get that. Having said that, that means--and that would probably apply to the other mandatory areas that you called on as well, although we will look at each one of them individually, obviously. Given that, you know, we are going to have to shuffle money around to maintain programs because we don't have our allocation yet, but the entire discretionary side of the budget, I think, was increased by 0.1 percent under last year's agreement. So there is not a lot extra there. So we are going to have to make some really tough decisions. It would be very helpful to us if you would tell us what are your top three or four priorities within the budget and that you think are absolutely critical to being funded? Secretary Burwell. So as we think about the issue of tough decisions, I think you appropriately reflected, when we look at the second year of the deal, it is a very, very small increase, and with other things that happened naturally that, you know, the question of ``Is it an increase at all?'' for most of the bills I think is an important one. And I think that is a reflection of where our discretionary levels are. In this budget, by 2019, we will have one of the lowest levels of our discretionary-to-GDP ratios that we have seen as a nation. And so I think the question about priorities and tough decisions, I think we feel we made those because everything is paid for. And that is the issue when we talk about the budgeting. In terms of the mechanisms that we use, discretionary or mandatory, I think what we are all focused on is how much we spend and how that affects and impacts the deficit. And the budget overall keeps us on a downward trajectory. We made decisions that may not be the ones that folks agree with, and we understand and appreciate that, but we do pay for everything, and we do continue on our path of deficit reduction and making sure our debt-to-GDP ratio is on a declining path, as well as our deficit. So in making the tough choices and the prioritizing, we have done that in the means by which we pay for these things. FY 2017 BUDGET REQUEST PRIORITIES Mr. Cole. Well, I am the last person to cross swords with a former OMB Director about the budget, but I don't think we are on a downward trajectory. Certainly, in gross dollar terms, the deficit is going to be higher this year than it was last year. And I think this is off our topic, but I think one of the great missed opportunities of the President's second term was real entitlement reform. There was a couple of times he was close. I mean, he put, to be fair to him, change CPI on the table, and he put means testing for Medicare on the table. But he also put--demanded tax increases, a lot of other things with those. We could have probably passed those things, and I think they would have been a material improvement on where we are now. But that aside, we are unlikely to be able to do that in the short term and the amount of time that we have left, and what we do have to do and want to achieve is to actually give you a real budget. So I am going to return again, of the budget itself, what are the three or four top things of what you have submitted that you think are absolutely critical to the functioning of health and human services? Secretary Burwell. So, as I said, I think we have put together the budget in a way that reflects our priorities. I think we have heard criticisms, and I am sure I am going to hear them today, in terms of the cuts that we have made to other areas, places where we have not fully funded and had to make choices. And I am sure we are going to talk about those, whether that is, you know, the issues of REACH or the issues of BARDA. I am sure that we will talk about those today and have made a number of those choices. The other thing I would just reflect, as we think about the overall budget picture, is the question of demographics in our country. And we know that healthcare is one of the most fundamental drivers of the costs causing these issues. But I think we also know that the basic demographics in our country with regard to we are going to have more people who are in that Medicare band, and so how we think about a balanced approach. And that gets to this question of revenues versus cuts because the problem isn't simply a problem of a set number, you know? It is that increase. And I keep my eye on per capita healthcare costs, and in Medicare, we have seen those be very low for six consecutive years. And so, as we continue to think about it, I think that is an important part of the conversation, which I think you know I welcomed in my OMB job and I welcome here. Mr. Cole. You did. And you have always been a good person to have that dialogue with. With that, I want to move to my ranking member for whatever questions she cares to put to you. Thank you. FLINT, MI WATER CRISIS Ms. DeLauro. Thank you very much, Mr. Chairman. I just would like to remind everyone that Labor, HHS has 32 percent of the nondefense discretionary budget. If we had received an allocation that was commensurate with our portion of discretionary spending, we would have received an additional $5,200,000,000 to what we have had. If that happens this time with our allocation, yes, in fact, we can accomplish what we want to accomplish in this budget. And that is our portion of discretionary spending, and we were shortchanged last time. And we should not be shortchanged this time. And with that, Madam Secretary, let me just say that and let me talk about Flint for a second. Unbelievable tragedy, 8,000 kids. Doctors, everyone tells us lead poisoning is irreversible, OK? But it is the short term, we need to ensure Flint's drinking water is safe. We also need to think about medium term and long term, and I know you are the lead agency here, and I just want to run down a few things to find out where you are overall in addressing this issue. What is HHS doing to ensure that every child who has been exposed to lead has a case manager to ensure they receive the services they need? You provided $500,000 to two community health centers. That is a start. I would like to know how we are going to ensure that Flint has sufficient capacity to treat these kids for years to come. It is the longevity of the Federal response here. Head Start serves about 1,000 kids in Flint. Another 150 are enrolled in Early Head Start. According to the Administration for Children and Families, more than 1,000 income-eligible children are not enrolled in a Head Start program. Nearly 3,000 income-eligible children are not enrolled in Early Head Start. How do we ensure that these kids, when the two areas that we have been told by doctors and scientists, that where we can make a difference in mitigating this lead poisoning for these children, is in good nutrition and early nutrition and in early childhood education. These are the two areas where we can play a role. So how do we ensure that they don't fall behind and suffer the effects of lead exposure for the rest of their lives? Let me ask you to answer those questions. Secretary Burwell. So as you mentioned, the Department of Health and Human Services has been asked to lead the Federal response in Flint, MI. As we lead that response with our objective of supporting the State and local community in getting to a better place, there are two main goals. The first is clean and safe water in the short term, in the medium term, and the long term. And then the second is understanding the damage that has occurred and then working to mitigate that in support of the State and local community. With regard to the specifics of your question, a number of them, two of them, I think, come together--the case management question, as well as the question of the capacity and how things come together for those children who may have damage. And I think probably the most important thing, which we are in the process of doing, we will improve a Medicaid waiver in Michigan. The Governor has asked. I met with the Governor. I was in Flint--was it last week, was in Flint, met with the Governor, had these conversations. There are two very important elements to the Medicaid waiver. The first is expansion to pregnant women and children in terms of the expansion, which we will do. The second, though, is comprehensive case management, which will be a very important part. And the funding to do that will help us in that space. With regard to the issues of the programs that you mentioned, a number of those programs had conversations also with the Governor and others about how we make sure that those services are going to reach those children. Ms. DeLauro. Are we examining the opportunity for Head Start for all eligible children? Secretary Burwell. That has been a part of the conversation. Ms. DeLauro. We have got, what, about 38 seconds. So we are going to continue this, I think, for a while. So I won't overstep my bounds, Mr. Chairman, but will come back on some other things. Mr. Cole. I thank the gentlelady greatly for staying within the time limit. With that, we go to my good friend from Arkansas, Mr. Womack. ELECTRONIC HEALTH RECORDS Mr. Womack. Thank you, Mr. Chairman. And my thanks to the Secretary also for her service to our Federal Government and our friendship that dates many years. Secretary Burwell, Congress enacted the High Tech Act with the intention to encourage providers to adopt electronic health records, and today, over 80 percent have them. However, as the meaningful use program has been developed, its regulations have grown far beyond the intent of Congress and have put layers of new requirements on the backs of our doctors. Not only have these requirements become so onerous that it is darned near impossible to comply, but ultimately, they force providers to spend more time on the computer than with the patient. It seems to me that there has been more of an emphasis on ensuring compliance by providers in achieving meaningful use than there has been on ensuring our providers can comply and that EHR use is actually meaningful. That is very concerning to me. I have heard these concerns from Arkansas providers frequently. In fact, as of yesterday, another round of visits yielded the same, and I was encouraged to learn that the CMS Acting Administrator and the National Coordinator of Health IT are using the tools provided by the passage of the Medicare Access and CHIP Reauthorization Act of 2015 to transition the Medicare EHR Incentive Program for physicians towards a reality of where we want to go next. On the eve of these changes to electronic health record meaningful use, can you help me understand how the changes will shift emphasis from the rigid enforcement to making the program truly meaningful to patients and providers? Will the changes provide flexibility for providers? Will they ensure EHR interoperability? And when can we expect these improvements to be released and implemented? Secretary Burwell. So I think, as you have heard, we have taken the comments and feedback that we have received and, even as we were doing rulemaking in the fall, announced changes. Acting Administrator Slavitt, as well as Karen DeSalvo at the Office of the National Coordinator, have talked specifically about that. In terms of the specific things that we will do, MACRA is giving an opportunity to make changes as we go forward. Some of those, though, we already have put in place. One is we have put out standards. And historically, we hadn't taken the step to articulate what we believe are the correct standards that people should use because that gets us to interoperability. The second thing, and you will be seeing more on this as soon as Monday, I will be--I am trying to think which day, but I will be speaking to a gathering of 4,000 technology providers in the private sector that are the people who are providing this software. And we will be talking specifically about steps that we are taking forward--together forward in partnership with those companies. And so what we are trying to do is in the places where we can lead and we give directions, such as setting standards and an interoperability roadmap, that we take those actions, and where we can work with the private sector and where they need to lead to do that. So it is the combination of the two things, and part of that will also be the implementation of MACRA, which we are pleased to do. It is aggressive. Everyone, I think, should know what you all passed is aggressive. We are excited about that and think that gives us a tool. At the same time, we need the private sector with us, and we are working with them, and you will hear about that on Monday. Mr. Womack. How soon can we see change on this front? How soon can the wheels of progress turn and actually bring some relief to the essence of my question? Secretary Burwell. So this was a meeting I had, actually, with the team on Tuesday in specific terms because, for me, the answer to that question has to be 10 months and 20-some days in terms of real change that providers can feel. And I think what providers and consumers are both going to feel, and this is something that you all will probably also work on, is at a minimum, when we take away data blocking, and two things have happened. We have been clear that we are going to take action in any way we can against data blocking and that we are articulating it. When the Congress articulated that it would act--and data blocking is where these providers of the technology, they can do it either, it can be omission or commission. They can actually do things that block an ability of consumers to get that data, or they can do things that don't really completely block it but make it harder in terms of not providing. There are things that are happening in that space that we are going to feel a difference within the year. Mr. Womack. One of the real concerns I have, we have a number of providers that fall into this category that are getting to the age now where they either have to comply or they may choose to just leave the profession. There are a number of providers out there that still have a lot to offer in terms of medicine, but yet are just leaving the enterprise. So is that of concern to you? Secretary Burwell. It is, and that is why--yes, it is, which is why we have got to get it to where the value of this outweighs the difficulty in doing it. And I would just ask everyone to watch for that when you all conference on 21st Century Cures, the Senate side will put in provisions that are related to this very issue. And as it comes back, my expectation, there will be a conference, please watch there because that is a place where legislation may help us. Mr. Womack. Thank you. Mr. Chairman, I yield back. Mr. Cole. Thank you. With that, I move to my good friend, the gentlelady from New York. GUN VIOLENCE RESEARCH Mrs. Lowey. Thank you again, Mr. Chairman. Thank you, Secretary Burwell. According to the Brady Campaign, 31 Americans are murdered with guns each day. One hundred fifty-one are treated in an emergency room due to a gun assault. That is not all. The U.S. firearm homicide rate is 20 times higher than the rates of 22 of our peers in wealth and population combined. So I really think about it and wonder why. For instance, is it possible there are societal trends or other factors unrelated to gun purchases and ownership that may be important to study to reduce gun deaths? The Federal Government and in particular agencies within your department, such as the National Institutes of Health, Centers for Disease Control, are some of the leading public health research institutions in the world. So I am baffled that rather than arm them with the scientific knowledge to save lives, some on the other side have supported efforts to stifle this research. Now I just want to say I worked with former Representative Dickey, and I remember when that amendment about 20 years ago was put on the bill. And he has already spoken out against it and said we should do the research. So I would like to ask you, are there public health reasons why the CDC should not be conducting research into injury prevention due to gun violence? If the committee were to fund the President's request of $10,000,000 to study injury prevention due to firearms, what type of research could be funded? Secretary Burwell. We believe that we should do the research, and it is a matter of funding. So for us at the Centers for Disease Control and Prevention, if we had those monies, we would do the kind of research that you described in terms of trying to understand why they occur, and as you said, it can be a range of reasons, societal reasons and other reasons. But we actually don't know because we haven't been able to do the research. So as we have proposed in our budget, we would like to see that money so that we can start that work. Mrs. Lowey. Thank you. And I hope we can make that happen, Mr. Chairman. It would be a good thing for the country. EBOLA VIRUS RESPONSE We have made great progress since the Ebola epidemic reached historic proportions in 2014, but we are not yet done combating the Ebola threat, and our public health infrastructure, including researchers, hospitals, physicians on the front line, have not yet completed the mission to eradicate this deadly disease and protect the public. In short, rather than continue to wipe out Ebola, my friends on the other side seem prepared to declare mission accomplished when cases may still emerge. What remaining Ebola efforts would be prevented or delayed if funding were to be used for the Zika virus, and in particular, are there medical countermeasures that could be impacted as a result of using Ebola funding for the Zika virus? Secretary Burwell. With regard to the countermeasures, yes, there are a number of things. We should be hearing from the WHO. I will be meeting with Margaret Chan tomorrow morning at 7:00 a.m. because we need the results of the ring trial that was done on the Ebola vaccine. We are also seeing the work on ZMapp, which was one of the issues, and I read this morning there will be another study coming out in terms of some of the types of tools that we can use even in the treatment space, which we haven't historically seen. So we are going to be seeing a number of things that would come online that we will use those monies and ask for BARDA and Bioshield to move forward if we can. The other thing that I think is extremely important in terms of those monies is the Global Health Security Agenda. Right now, in Nigeria, we have Lassa and measles. But because we are investing those monies in prevention, detection, and response, that is what the Global Health Security money that you gave us to spend over 5 years for countries to put together plans, we are exercising those monies. Three hundred individuals were at CDC, and I will not go through all of the outbreaks that are occurring or the fact that last year, we had the most cases of Middle East Respiratory Syndrome coronavirus--respiratory, these are the ones that really spread quickly--out of the Middle East, Saudi Arabia, that we have ever had as a nation. MERS was controlled because Korea had the capability to do it. We supported them. We sent people from CDC. But it happened, and no one even knows about that, which would have been like Zika, if it had grown. And so those are the things the money is being used for, and we think those are priorities. As you probably know, yesterday we sent up letters. I have done a reprogramming of existing monies from the Prevention Public Health Fund to keep CDC going, and we have sent you all a letter on two transfers. And so we are doing everything we can to keep our efforts going right now on Zika, but the demand is great. Today, I got my numbers this morning. There are 155 cases in the United States. You have seen the numbers, and you have seen the sexual transmission. In Puerto Rico, we think those cases--because we depend on a set number, I think the cases are actually higher. So those numbers will continue to rise quickly. Mrs. Lowey. Thank you. And thank you, Mr. Chair. Mr. Cole. Thank you. The gentleman from Tennessee, Mr. Fleischmann, is recognized. SPECIAL ENROLLMENT PERIODS Mr. Fleischmann. Thank you, Mr. Chairman. Madam Secretary, thank you for being before us today and appreciate your phone calls and all of your hard work and hard efforts. Thank you. Madam Secretary, I have got some questions. I am concerned that the recent news indicates too much instability in the individual market. Although you are highlighting a 90 percent coverage rate, enrollment expansion in the individual market are far below initial projections. Consumers who are willing to do their part by paying a full year of premiums are paying higher rates because the exchanges allow people to sign up for just-in-time medical services during what are designated as special enrollment periods. I am also concerned about the ever-moving and expanding open enrollment period. The original ACA regulations had open enrollment periods that ended in early December. Allowing individuals to continue to enroll after the current policy year can encourage anti-selection and letting purchasers pay for only a partial year of coverage while still receiving a full year of coverage. My two questions, Madam Secretary, are does the HHS plan to significantly eliminate more SEPs in the near future, and does HHS plan to limit or expand the open enrollment period? Thank you. Secretary Burwell. So with regard to the issue of the special enrollment periods, we have announced that we have gotten rid of a number of those special enrollment periods, as your question reflects. So, yes, we have gotten rid of them. In addition to that, we have put out clearer guidelines with regard to making sure people know so that we narrow that frame in terms of people doing it. And yesterday, we actually put out information that you will have to provide documentation, which is one of the issues that the issuers have talked to us about, in order to promote a more stable market. So we are taking those steps in terms of those that were in your suggestion. With regard to the broader question of numbers, I do think it is important that when we think about what the objective here was, the objective was access to insurance and then moving to coverage when we think about the Affordable Care Act. And with regard to the CBO numbers, in the original CBO numbers, as we look at the tracking of the number of the uninsured--the reduction is slightly higher than CBO projected. What we know is that not as many people have moved from employer-based care into the marketplace, and we actually think that is fine in terms of the marketplace not growing by taking employer-based care in. And so we think that is an acceptable thing. Having said that, we want to make sure we are listening, and that is why the issues you raised are a number of issues the issuers have raised with us, and we have taken action on those as they go into this period to determine their participation in the next open enrollment. COMMUNITY HEALTH CENTERS Mr. Fleischmann. Thank you. I would like to shift to community health centers, if I may? Madam Secretary, I would like to discuss the funding cliff that community health centers face. As you know, mandatory funding is due to end after fiscal year 2017. It is my understanding that a large portion of this funding supports basic, ongoing health center operations. Can you share with us what the alternatives are if the authorizers do not act on your request for an additional 2 years of mandatory funding? I know these centers have been a source of medical care for the uninsured. Can you explain to us the implementation of the Affordable Care Act and how it is affecting the health center financial model, given that nearly everyone ought to have some form of insurance coverage by now that the health centers can bill. Secretary Burwell. So we are hopeful that we can get the extension because it serves so many people, as you articulated, in terms of the millions and millions of folks. I think it is 1 in 14 Americans are served by a community health center in the country. And so the amount of services those are providing is extremely important. With regard to the issue of the finances, when I go and meet with federally qualified health centers, their finances are improving. They are improving in two cases. One, they are improving because people have coverage now, and they use that to expand their services. And whether that is in the issue of dental or other services that they can provide, behavioral health and that sort of thing. So they are using that money. And in Medicaid expansion States, that is the other place where they are getting those benefits. These health centers are going to be the backbone of everything from some of our behavioral health work to increasing our medication-assisted treatment programs with opioids, and in our budget right now, we have proposed that we can start using telemedicine. So they can be the centers, and this is important for rural America in terms of issues in rural settings where telemedicine can be a real opportunity for both quality improvements and cost reduction. So those are some of the reasons we think it is extremely important to continue. Mr. Fleischmann. Thank you, Madam Secretary. Mr. Chairman, I will yield back. Mr. Cole. I thank the gentleman. My good friend from Philadelphia is recognized next, Mr. Fattah. BRAIN INITIATIVE Mr. Fattah. Thank you. And Madam Secretary, it is good to see you this morning. Your focus on the Affordable Care Act and its implementation has led to an historic level of participation. And particularly in Philadelphia, and you came personally to my district and helped launch an enrollment effort. And I think we lead the country. We might still be in a competition with Miami. I am not sure. But I will just claim the victory and credit your great leadership with it. There is so much that I want to ask you about. We only have a few minutes. Let me start with our work on the neuroscience front, on the BRAIN Initiative. NIH's participation and leadership in it is obviously critical. I want to thank the chairman. Working with us last year, we were able to fully fund these initiatives. And as the administration comes to the end of this period, it is going to be important that this work not be interrupted. We have some 50 million Americans suffering from a brain- related illness. The efforts of NIH, along with the National Science Foundation and DARPA and a host of a dozen other Federal agencies, the VA and so on, this work is critically important. So be interested in your thought about how to make sure that we can structure the baton pass correctly and that this work can go forward. Secretary Burwell. So I think one of the most important things is that it is housed at NIH, which I think under any administration will continue. And I think the BRAIN work and the demand around the BRAIN work, whether that is concussions, Alzheimer's, is great. And so I think we are hopeful that this will continue to be a priority. I think the other way we get the continuity is already happening. Thank you all for the support that you provided last year. We have already issued 125 awards. So those scientists are doing their work to provide the input, and I think, as you know, it is not one effort. It is about research in a number of different areas and places because the brain, right now, our knowledge is pretty limited, and there are so many conditions and diseases that are related. And so those 125 awards are out, and I think that is the other place and way that we will be able to continue this effort and get results. Mr. Fattah. Thank you. COMMUNITY HEALTH CENTERS And the--in your testimony, you talked about the community health centers, and my colleague has already asked you because we are going to arrive at an important challenging moment for the community health centers. Now this is my priority and a number of our other colleagues, I know Barbara Lee and others. In the Affordable Care Act, we provided a very significant ramp-up for federally qualified community health centers. The last thing we want to do is have one out of every nine Americans being able to use those centers now and then get to a point in 2017 to have a problem. So we want to work with the authorizers and the administration and get what we think is a modest request. Your request is for a 2-year? Secretary Burwell. Yes. Mr. Fattah. Right. To make sure that that happens. So this is very, very important. PRECISION MEDICINE INITIATIVE And then you have a very significant increase in the precision healthcare portion of the budget. We provided money last year, and this is an area that is vitally important and builds on the work of the Human Genome Project and a host of things. So if you could talk a little bit about how you see the progress from last year's funding. I know you just started to move that money, but if you could talk to us a little bit about that. Secretary Burwell. So two places in terms of specifics where the Precision Medicine Initiative, and thank you all for the support for the funding, in terms of where the progress is being made. The first is, I would say, in the cancer area. That is the place that is the most ripe and where we are moving the dollars through the National Cancer Institute to continue to do research in the genomic space. And this is about the genomics of the tumor. And so that we can actually instead of saying, ``You have kidney cancer,'' we look at your tumor. And I met the gentleman at NIH who his family had had a number of members die. He lost one kidney. He had over 30 tumors removed, and they kept growing back. But once we analyzed his tumor genetically and treated it in that form, versus treating kidney cancer, we were able to make progress. And so those are the kinds and types of examples. The other place where that money is going to come to fruition is, and I think the President is doing an event either now or this afternoon on Precision Medicine, we will be working with the private sector on some of their engagement. But I think the big thing is getting the cohort, the group of people who will come in and be a part of creating a broad group of people where research can be done. And so we have put in place some of the privacy recommendations, some of the security recommendations, so that we build the right platform as people want to and can come in. Mr. Fattah. Thank you. Thank you, Mr. Chairman. DEFICIT REDUCTION Mr. Cole. Thank you. And we next move to Dr. Harris. Mr. Harris. Thank you very much. And thank you, Madam Secretary, for being here today. First, I just got to clear up a question I have got because somehow you talk about the budget being--showing deficit reduction. And I have got to tell you, I--because I just pulled up the President's budget, and am I correct that the President's budget projects a deficit in 2026 of $793,000,000,000? Secretary Burwell. With regard to the specifics of that number, I will trust if you have the budget in front of you because---- Mr. Harris. OK. It says $793,000,000,000, Madam Secretary. And the CBO estimates this year's is $541,000,000,000. And I got to tell you, this is why people don't trust Washington. This is why we look at the presidential race, and we wonder. We scratch our heads like, ``Why is it going the way it is?'' Because only in Washington, honestly, could a Secretary come before a committee and say that raising the deficit from $541,000,000,000 this year to $793,000,000,000 in 2026 is deficit reduction. This is the problem, and this is not a question. This is comment. This is the problem with Washington. That being said, we got a problem because we project and the President's budget actually projects a debt of $21,300,000,000,000 in 2026, 21.3 the publicly held debt. This is a real problem. So we got to look at how we fund things, and first question I have is the Zika funding request. Is that above the caps? Secretary Burwell. It is an emergency supplemental, yes. Mr. Harris. So it is above the caps. Secretary Burwell. Correct. Mr. Harris. So, actually, we are sitting on a $541,000,000,000 deficit, and we are--the administration comes in and says this is emergency funding. Now I will tell you, when I was in the Navy, we had a saying that the Navy went from crisis to crisis unimpeded by plans. Within one year, we have had requests, I think the last request for Ebola, someone can correct me, $6,000,000,000? I mean, it is just billions and billions of dollars. That was an emergency request. Now we have got an emergency request. Is there a plan somewhere? And then I go, oh, my gosh. There is a plan. It is called BARDA. It is actually called--we actually have a plan to fund projected problems into the future. And what did the administration do? They come and say, yeah, we got a plan, and we need a certain amount of money, and we are only going to spend half of that. We are going to ask you for emergency funding, but actually one of the plans we have so that we are not going crisis to crisis so that, for instance, when there is anthrax outbreak, we actually have the medications to treat it. When there are the--or I can go down the whole list of BARDA. So that actually we don't end up with a crisis, the administration chooses to underfund that program. Where is the plan? Secretary Burwell. So---- Mr. Harris. Because Zika and Ebola are actually, you know, although they are different viruses, they are actually the idea that we should have a plan and say we have to develop a method to rapidly react without emergency funding. So, for instance, could you describe the plan to rapidly develop vaccines and get them approved and how much we are spending on that plan? Secretary Burwell. So, Dr. Harris, I think that the fundamental cost in both Ebola and in Zika actually has to do with public health for the American people and not the actual cost, the amounts of money needed in terms of vaccine development and deployment, if you have them. But with regard to the cost for both Ebola and Zika, right now what we need to do is make sure that we are getting the right information and doing the diagnostic testing. Right now, the Governor of Florida, I read this morning in the newspaper, he has asked me for more tests. Right now, with regard to that is a CDC function. The questions of Ebola and Zika, right now we know in this country, 14 women are pregnant who have had the virus. We don't want that to continue. We don't want more. We don't know. I can't tell you how long Zika lasts in semen. Neither can Dr. Frieden, neither can Dr. Fauci. Mr. Harris. Madam Secretary, I absolutely agree, and I have a list of questions. Secretary Burwell. Those are the funds---- Mr. Harris. So I am just going to keep on going. Secretary Burwell. Those are the funds that I think you are asking for. Mr. Harris. Is the public health--you have a public health prevention fund in your department, don't you, started by the ACA? Secretary Burwell. We do. Mr. Harris. How much of that money is appropriated to Zika for next year? Secretary Burwell. In terms of that fund, as I mentioned earlier, we have asked--in terms of the prevention fund? Mr. Harris. That is right. How much in your budget of that prevention fund is going toward it because that---- Secretary Burwell. There is no prevention fund. I just sent up a letter that actually we are using some of the monies for those in terms of other carryover balances. Now which prevention fund you are talking about---- Mr. Harris. Now how, Madam Secretary, the public health---- Secretary Burwell [continuing]. Because there is a Prevention and Public Health Fund that you all told us---- Mr. Harris [continuing]. Prevention fund. The Public Health and Prevention Fund that is funded--that was established by the ACA for the purpose including vaccines. So we are told, well, we have to develop a Zika vaccine. Are we using currently available funds before we ask for emergency funds? Secretary Burwell. Those fundings have been allocated by Congress. It happened 2 years ago. In the first year I was in the administration, the administration had choice. After that, the Congress, in the last 2, maybe 3 years--I will ask the chairman. But in the last 2 at least, you all have given us very specific allocations for those monies. Mr. Harris. And have you asked for the Zika funding to come from that allocation instead of an emergency allocation that is outside the budget caps? Secretary Burwell. Dr. Harris, we believe in terms of the tradeoffs that we need to make in an emergency situation, where babies are being born with microcephaly that we believe it is an emergency. Mr. Harris. I yield back. Mr. Cole. Thank you very much. We will next go to my good friend from California, the gentlelady, Ms. Lee. Ms. Lee. Thank you very much. Good to see you, Madam Secretary. Secretary Burwell. Thank you. DIVERSE WORKFORCE Ms. Lee. And I just want to remind this committee, you know, I think our allocation right now continues to be, what is it, 10 percent below pre-sequestration levels? And so we need to really recognize that and try to understand the fact that this allocation at this level continues to really hamper our ability to address our Nation's current and emerging health needs. It is really too bad, and hopefully, we can get a better allocation this year. A couple of things I would like to ask you about. Of course, you know the Health Careers Opportunity Program, I have been calling for years now to make sure that we fund it. So I am really glad to see that there are resources in this budget for that. But I want to ask you about why you are eliminating the area health education centers, which are really critical for minority and low-income families, according to--in terms of ensuring medical school training and healthcare training. There is a statistic I want to raise at this committee during this hearing that the Association of American Medical Colleges put forward. There were fewer African-American males enrolled in medical school now than in 1978, and so by eliminating this program, I want to see how you are going to really address the emerging needs of diversity in the health workforce and halt this disturbing trend. Secondly, as it relates to the Asian Pacific American Caucus, I serve as the co-chair of CAPAC, and we have many, many issues we have been addressing, and thank you for your assistance and leadership on this. But the Racial and Ethnic Approaches to Community Health, that is the REACH program, it has historically provided direct support to the AAPI community. Of course, with higher rates of health morbidity and mortality, this initiative is so important. REACH has documented success in engaging Asian Pacific Americans in healthcare, healthcare prevention, but yet this budget proposes to cut $20,000,000 out of REACH. And so this is a very specific, unique program that really helps with the healthcare needs of the AAPI community. So I wanted to ask you why the cut? And do we see that somewhere else in the budget at this point and just emphasize the importance of that to the AAPI community. Secretary Burwell. So the issues of diversity, both in two forms, in terms of making sure we have healthcare providers that are diverse as one of our priorities, as well as the issue of making sure we are serving communities and communities that sometime have disproportionate needs. With regard to the overall educational issue, I think you know and as you stated in your beginning comment, we are in a state of a limited budget. And with regard to the specifics of the program, what we have chosen to do to try and work on those numbers that you said, the 1978 to now---- Ms. Lee. Really big numbers, yeah. Secretary Burwell. What we are hopeful is, is by focusing on the programs that actually are closer to that point of getting the people in. And so the funding that you see in terms of our Public Health Service Commissioned Corps, and that is not the Commissioned Corps, but the Public Health Service Commissioned Corps in terms of that has over one-third minorities. And by investing there, we are getting those folks in at that point at which they are so close, and they are at the point at which they are making decisions. And so trying to focus on the point where we would have the most leverage with limited resources. Ms. Lee. Is that why you eliminated the area health education centers? Secretary Burwell. Yes. Because in terms of trying to figure out in a world of limited resources where our dollars can have the most impact, those were the choices that we made. With regard to the broader overall issue, our investments in community health centers has been articulated as well as they are very important to serving and providing monies for diverse communities. In addition, the Affordable Care Act and the issue of getting people insurance is one of the most important things that we believe and we are deeply focused on in terms of changing the dynamic of the disproportionate and the inequities in minority populations. We know that getting people coverage is not enough, and we have to move that coverage to care, and in the last year, you have seen efforts in that place through CMS, as well as through the community health center. Ms. Lee. OK. But the cut, the $20,000,000 cut in terms of the REACH program, because it has been so successful in addressing the Asian Pacific American community, why the cut and where do we see that focus again in another line item? Secretary Burwell. I think what we want to do with the proposal that we have in front of us is to be able to do some of that evaluation to understand how we can make that program as strong as we possibly can. And when we do that, think about then where and how are the places that we can expand it. Ms. Lee. OK, not expand it, but why would you cut it? I am just trying to understand the cut. Secretary Burwell. In a world of limited resources, as I said---- Ms. Lee. That is limited resources. So once again--so ethnic minorities, again, are getting cut in this budget like everybody---- Secretary Burwell. Across the board, I think--well, like everyone. Because I think what we have tried to do in terms of care for these populations, there are a number of other areas where we have tried to make sure that we have either maintained or increased because we know the disparities are great. Ms. Lee. OK. And then viral hepatitis, I have time? Any more time? Mr. Cole. I would ask you to look at the time. Ms. Lee. OK. I will get it next time around. Mr. Cole. Thank you. Just with the indulgence of the members of the committee, I will say for the record, I know 12 cardinals and 12 ranking members that are convinced that their allocations are too low, and I can say with certainty that the cardinals and ranking members on Interior, Defense, and this committee are absolutely correct. [Laughter.] Mr. Cole. With that, I am going to move to my good friend and, sadly, retiring Member. So it is also his last appearance here, and Mr. Rigell, you have made great contribution to this committee. You will be greatly missed in Congress. ALZHEIMER'S DISEASE Mr. Rigell. Thank you. Even though I am way down here on the end. Listen, and what a privilege it is to serve on your committee and with the ranking member and just the individuals that we get to interact with. And I join the others in thanking you for your service. I want to talk about something that is affecting so many American families, Alzheimer's. I have a kind of a little window into it just because of the fact that my parents are still living. They are doing so well. They are 93 and 88, and we Facetime every Sunday morning at 8:00 a.m. And sometimes the conversation pivots over to their friends, and they start describing--they start naming names, and well, they are the names of my childhood friends, their parents, of course. Their parents. So I know them, and they just--they have to talk about how painful it is because they don't know where they are and all those other symptoms of that horrific disease. And I know that we increased research by 60 percent, and I am so supportive of that. But as I think about how we have extended the length of life and not the quality of life, and I think about how organizations from time to time miss real critical moments, like the housing crisis of 2008-09. You know, we missed that. We didn't really see that coming, at least most people didn't. And it was like the Challenger disaster, if you look back at it from a managerial standpoint, they could see where they went wrong. And I feel like we are in that same boat with respect to Alzheimer's. I am a fiscal conservative, and yet embraced in all of this, and I also brought my heart to Washington, my mind, and my calculator and everything else. But I really would submit to the committee that I think we are far lower than we need to be. And I say this as a nonmedical professional. But, so I have two questions for you. The first one is how have we managed that 60 percent increase? And please don't spend too much time on that because our time runs out so quickly. But I want to ask a hypothetical question. I think you will appreciate the question. But if you could invest in that particular area not to the detriment of the other areas--I am giving you a hypothetical. If you could just--because at some point, the water starts to flow out of the glass. I mean, there is just more money than we can really apply to the research. But what is that theoretical limit of what you would want to apply to research to Alzheimer's? Because I think this is the number-one challenge facing our country for a host of reasons--quality of life and, indeed--and indeed, fiscal, the fiscal aspect of it. So could you walk us through that, please? Secretary Burwell. So with regard to that answer, I actually would want to consult with NIH, and here is why. And it actually gets to a part of what Dr. Harris raised. In terms of our BARDA monies, in terms of managing the taxpayers' money well, those monies that we took down were Bioshield monies, and it is because the science is not ready and our contracting ability in terms of negotiating, we won't negotiate more. And so we have carryover balances. And so how I would answer that question actually is related to where the science is because I wouldn't just want to put out a number. I actually would want to know that we believed that we could spend the money well. And so I am happy to talk to our colleagues at NIH and get back to you with that because I actually think that is important that when we care deeply about things and are passionate about them, I still think we have to use some methods of standards of with regard to using the money. Mr. Rigell. Oh, I absolutely support that. Secretary Burwell. And I am sure you agree with that. Yes. Mr. Rigell. As a business person who--and whether in office or out of office, I am going to continue to advocate for this because I think it is the right thing for our country, and I think I will do so as a fiscal conservative. It may surprise the chairman, but I was actually called out just a little bit in the Financial Services Committee by one of our colleagues on the other side, accusing--well, saying that I was like raising my voice, I believe, or something because it was an Office of Management and Budget Director there, and I was actually pressing this whole point about our fiscal situation. And I share the views that have been expressed here, particularly on our side here, that I don't believe the administration has fully grasped the threat of our fiscal--the risk that we have, and he is not fighting for it. I didn't see him fight for it in the State of the Union, for example. I walked out just really stunned at the lack of attention to this matter, and I acknowledge easily and quickly that both sides have contributed to it. But I am \1/435\th of \1/2\ of \1/2\ of this part of the Government that actually works on all this. He is one-half. And I am just going to take this opportunity to share with you, as I did with Director Donovan, that I don't think we are grasping the severity of our fiscal situation. I want my President in his remaining term of office here--I am not expecting much, actually--but to really bring a clarion call to this and to do what is needed to set our country on a better fiscal path for a host of reasons. And I want to respect the time, and Madam Secretary, I appreciate your service, and I share the respect that all of us here have for you. Thank you. Secretary Burwell. Thank you. Thank you. Mr. Cole. Thank you. RACIAL AND ETHNIC HEALTH DISPARITIES We will next go to my other friend, the gentlelady from California, Ms. Roybal-Allard. Ms. Roybal-Allard. Thank you, Mr. Chairman. And welcome, Madam Secretary. Let me begin, first of all, by expressing my concern also, as Ms. Lee did, with the $21,000,000 cut to the REACH program. And I can't help but question that even though there have been 150 journal articles documenting the achievements of REACH in reducing health disparities, that there is a need for another study. So I just want to put that on for the record. ADULT IMMUNIZATION But I have another question regarding adult immunization. As you know, this country is falling woefully behind in our progress toward reaching the Healthy People 2020 goals for adult immunization. And the recently released 2014 National Health Information Survey data confirms very little change in adult immunization rates over the last 4 years, with fewer than 45 percent of adults receiving recommended influenza vaccines and barely 20 percent of adults age 18 to 64 being immunized against pneumonia. Especially concerning is the fact that immunization coverage among minority populations is even lower. The 2014 data revealed that racial and ethnic disparities persisted for all seven recommended adult vaccines and worsened for both herpes zoster and TDaP. For these reasons, I was pleased to see that your National Vaccine Program Office recently finalized the National Adult Immunization Plan---- Secretary Burwell. Yes. Ms. Roybal-Allard [continuing]. With four goals centered on improving infrastructure, access, and demand for immunizations, as well as fostering innovation in vaccine development. Could you please describe the short- and long-term steps that your department will take to move the NAIP implementation forward? Specifically, how does the plan address immunization disparities in minority communities, and how will HHS measure progress in bringing adult immunization rates closer to the Healthy People 2020 goals over the next 4 years? Secretary Burwell. So I think those four steps that you outlined, especially the access, the infrastructure, and demand, and in terms of when one is thinking about all three of those steps, making sure that we are going to the population that is most underserved in those spaces in terms of the minority populations. And that will guide our communication strategy, as well as how we reach people. And I think you know some of the tools that we have used in the marketplace, in terms of understanding how to reach consumers where they are, are tools that we will transfer and are learning from throughout the entire department to make sure we are communicating. Because one of the things that we have found is often our communications don't reach people. And often they are not done by people who are trusted. And so these are two very important lessons that I think from the marketplace that we are going to try and apply. It is why this year, in terms of the places I went for open enrollment, I went to barber shops. I went to beauty shops. We went to churches. Those are the places where people get the information that they trust and use. And so I think we need to shift some of our approaches to how we do this. Welcome your thoughts specifically on how we can reach the community and the ways that we are reaching them that you think are working and the ways that we have tried that aren't, so that we can quickly--because I think that consumer feedback, which I hope you are hearing, can help us get to a place where we can be much more effective because it is the larger part of the population with regard to these adult vaccinations that people don't do. The other thing that I would ask for your help and assistance, in Medicare, one of the things the Affordable Care Act did was it created, you know, preventive services for free. These are included. We have seen some increase in uptake, but not enough. And so this idea of our targeting needs to be across all age groups and especially adults in that band. Because some of these adult vaccines are especially important as you get older. MULTI-DRUG RESISTANT TUBERCULOSIS Ms. Roybal-Allard. Before he went into politics, my father was a public health educator, responsible for educating the Latino communities in California about the spread and prevention of TB. And because of that experience, I grew up with a healthy respect for the dangers of this disease and have been closely following the case of the 35-year-old man in Los Angeles who has been battling extremely drug-resistant TB for 3 years. And I was pleased to see the December 2015 White House release of the National Action Plan for Combating Multi-Drug Resistant Tuberculosis, and I want to commend you for this, a thoughtful and very comprehensive 5-year plan to develop new tools for diagnosis and treatment of the new research investments for an effective TB vaccine. But I am skeptical that the plan will be successful in reducing MDR-TB infection in the United States and abroad without any designated funding for its implementation in your fiscal year 2017 budget proposal. Why was there no funding request for the National Action Plan---- Mr. Cole. I would ask the gentlelady wrap her question up and a quick response, please. Ms. Roybal-Allard. Can you provide information on the implementation and the cost? Secretary Burwell. Yes, we will provide information on that, as well as the combating antibiotic resistance funding, too, which will be a part of it as well. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Roybal-Allard. OK. Thank you. Mr. Cole. Thank you very much. I now recognize my good friend, the gentlelady from Alabama, Mrs. Roby. UNACCOMPANIED CHILDREN Mrs. Roby. Thank you, Mr. Chairman. And thank you, Madam Secretary, and I am sorry that we were unable to connect---- Secretary Burwell. I apologize. Mrs. Roby [continuing]. Prior to today. On Tuesday, the chief of the U.S. Border Patrol testified before the Senate that border agents are seeing a dramatic surge in the number of unaccompanied minor illegal immigrants arriving at our southern border. In fact, the border agents have apprehended over 20,000 children from October 2015 to January 2016. That is double the number from the same period last year. And let me just be clear to my colleagues here today and to the people that I represent, I feel nothing but compassion towards these children, and I think the most compassionate thing that we can do is return these children to their families in their country of origin. Unfortunately, that is just not happening. Only 4 percent of these children, according to a statement made by my colleague Senator Jeff Sessions, are actually returned to their families in Central America. And as the mother of an 11-year- old girl and hearing the stories about what is happening to these children in this treacherous journey to the United States is horrifying, quite frankly. It is the worst of human trafficking. And so I don't feel as though there is discouragement coming from the Obama administration. I don't feel like we are sending a very clear message, and I have a real concern about the fact that there is consideration, continued consideration, to house these children on active military bases. We received a letter between Christmas and New Year's--a week where most people aren't paying attention, but we were-- that in fact, Maxwell-Gunter Air Force Base in Montgomery, Alabama, was under consideration to house these children. I met with your Office of Refugee Resettlement recently. We went over all the criteria about why and how this should be done with the military liaison that was there as well. And I am deeply concerned that any of our military bases remain on the list to house these children. I can share with you, I have a map that shows the buildings where these children are going to potentially be housed at Gunter. And for those who don't know, what happens is the space on these military installations where these children are to be housed is fenced off, and an outside contractor then comes in, most of the time armed, onto a military base. And these children are fenced in an area, a small area, mind you, right next to a neighborhood. And this is on a military base, Gunter Annex, where everything they do is at top secret clearance. This is a lot of cyber warfare going on. These buildings are just adjacent to the very buildings where our active military personnel are doing very important missions on behalf of the United States military. So I share all of this with you. I know we might do a second round, I hope. In the last remaining 1:45, I would like for you to first engage on this, and maybe we can follow up in the next round. But I just want you to know that I have a very strong opposition. We need to get these children home, and in the meantime, we certainly don't need to have them housed at a military base. Secretary Burwell. So I think you know our job is to--once the child is in the United States, make sure that they have appropriate care and are placed in an appropriate and safe setting. And that is the role of HHS. With regard to the discouragement issue that you raised, which I think is an important one, what we have seen is you are right about the numbers. Of that 20,000, we received 17,000, the 20,000 that they saw, 3,000 never came to us, which mostly usually means they go back immediately through DHS. But those that came to us, we now have seen a drop-off in January, which is a good thing. But we don't know if that will stay. And so my job is to make sure we have enough facilities that the children don't back up at the border, as we had in that one situation. And this gets to the issue of do we have a plan? Yes, we have a plan. But in order to have a plan, we have to have an ability to open facilities as quickly as we need them because it is a balance of the taxpayers' money with regard to maintaining empty beds versus when you can bring beds on line. We appreciate your engagement in helping us review the bases. The bases are an important part of this because the process--and we are looking at other private sites across the country. But as you said, finding sites that can meet the conditions that will work for the city, the community, and the children, both the children's safety, the community's safety, we weight all of those considerations. Mrs. Roby. But would you agree with me--and we will continue discussing this. But would you agree with me that a military base is the last place that we want to house these children? Secretary Burwell. The issue with the military bases is that they actually have housing and facilities that are needed. When I go and get GSA buildings, the millions and millions of dollars that it will take me to refit, you know, most of the GSA buildings that I would go and try and get in terms of accessing. The other issue, to be honest, is when I access a nongovernment facility, it has to do a process in every State for approval. Mrs. Roby. Sorry. Mr. Cole. I know we got you with a question right at the end. I would just ask---- Mrs. Roby. I am sorry. Mr. Cole. That is quite all right. I understand the passion around these issues. We have had the good fortune to be joined by who we affectionately call ``the big chair,'' and so I am going to move directly to him for whatever statement he cares to make and whatever questions he would care to ask. Mr. Chairman. Chairman Rogers. The big what? Mr. Cole. The big chair. [Laughter.] Chairman Rogers. Well, thank you, Mr. Chairman. Madam Secretary, it is good to see you. Welcome to the Subcommittee. Secretary Burwell. Nice to see you. OPENING STATEMENT Chairman Rogers. I apologize for being late, but we have got 21 hearings this week across our 12 subcommittees, and I had to attend the one across the hall with the Secretary of Defense for a period of time. But I wanted to be here to hear your testimony and be able to chat with you. As you know, the Congress and the administration set discretionary budget caps for fiscal 2016 and 2017 in the Bipartisan Budget Act, and I am proud to say that the 2016 omnibus stayed within that agreed-upon cap. The budget proposal put forth by the administration for HHS is also touted as adhering to those spending caps, but it is really just an illusion, to be frank with you. This year, HHS requested $75,680,000,000. But that number does not include an estimated $3,800,000,000 that you proposed in mandatory funds to support what are traditionally discretionary programs. While I very much enjoy our collaboration over time in the immediate past on a host of issues, I am disappointed that the important goals that we share for your department are undermined, frankly, by what I consider a partisan nature of that request. We both know that these figures and budget gimmicks are unrealistic, and frankly, it makes the already very difficult job that we have even more challenging. We all know that the mandatory side of the budget, and that is three-fourths of Federal spending is mandatory entitlements, growing out of control. We only appropriate a little less than a third of all Federal spending, and we have cut that. We have cut that for the last 5 years back by almost $200,000,000,000. We have cut discretionary, but mandatory just grows willy- nilly. And so you are proposing switching some money over to mandatory and outside the jurisdiction of this committee to oversee. That is why it is a difficult thing for us to have to contend with. There are two areas in particular that see astronomical growth in mandatory spending under your request. First, NIH. National Institutes of Health play an important role in groundbreaking medical research. NIH projects often result in lifesaving medical treatments that impact people all over the world. This committee understands the importance of NIH. We are all personally committed to NIH and demonstrated that support through an increase of $2,000,000,000 over fiscal 2015 that we put in the omnibus, thanks to the great work of your chairman, Chairman Cole. It was a bipartisan achievement. And for the administration to propose its well-publicized $1,000,000,000 Cancer Moonshot through mandatory spending outside the terms of the BBA, outside the scope of this committee's jurisdiction, it is simply disingenuous. We are all committed to cancer research, all forms of medical research, but we still are governed by the laws of nature. We have got to make tough choices about how and where to spend taxpayer dollars, and when you thrust this money into mandatory, it puts extra burdens on us to try to find money on discretionary to fund the things that you are displacing. The same can be said for the $1,000,000,000 proposal to address our Nation's raging opioid epidemic. Madam Secretary, I sincerely appreciate your efforts to keep the national spotlight on prescription drug and heroin abuse, and you and I have talked about this time and again, month after month, year after year. And you are a soldier in that cause. I know your roots in neighboring West Virginia. My district and your area are next-door neighbors, and the battle has been waged there for a decade or longer. It has been a source of personal motivation that you have dedicated to that cause, and you have taken, indeed, strong, decisive action to eradicate abusive prescription practices, educate our communities about the dangers of these drugs, and treat those suffering from the grips of addiction. We undoubtedly share those same goals, and I believe we have made some real progress together. But I also believe this request exposes our diverging paths to the promised land. We have got to continue to provide States the support they need to defeat the epidemic, but we have also got to do so within the reasonable confines of our budget. Supplementing existing funding with mandatory dollars to fight substance abuse only hurts our ability to address the problem in the near and distant future. While the ideas behind this budget request merit consideration, the President's request is simply not feasible as written. So I hope we can work together to address my concerns because the stakes here are far too high for us not to. Before I close, let me--I would be remiss if I didn't mention that rural hospitals across the country are struggling financially, and it is across the board. Many of them are on the brink of having to shut their doors, and I have several in my district that are at that stage, leaving these small communities without a dependable source of emergency and hospital care. Instead of working with these hospitals to make sure rural Americans have affordable, reliable care close to home, some of the proposals in the President's budget will compound their financial troubles. These harmful proposals range from adding a user fee for hospitals that utilize the 340B drug pricing program to cutting the reimbursement levels for critical hospitals that oftentimes serve the chronically ill and elderly. While to most it may seem like a few dollars here and a few dollars there, each proposal chips away at the sustainability of these rural hospitals. So I hope we can talk to you about that as time passes to solve a problem that is really crippling rural America fast. I thank you for your work, and thanks for being here. Secretary Burwell. Thank you, Mr. Chairman. Thank you. Mr. Cole. With that, I want to go to Mr. Dent, but before I do, after Mr. Dent enjoys a full 5 minutes, with unanimous consent, I am going to move us to 2 minutes. The Secretary has to get out of here. I know she has an engagement. We want to try and help her. But also there is a lot of questions here, and I want to give everybody a chance. So please, again, after Mr. Dent, we will try and hold it to 2 minutes. So thank you very much. And with that, my good friend from Pennsylvania is recognized. COLORECTAL CANCER SCREENING Mr. Dent. Thank you, Mr. Chairman. And good morning, Madam Secretary. We didn't get to hook up either, appreciated your phone call, though. As you know, for several years, I have been working on legislation that waives co-insurance for colorectal cancer screening test for Medicare beneficiaries when the screening results in removal of tissue or a polyp. I am encouraged this year that the budget includes a recommendation to do just that. How can we on the subcommittee continue to work with you and CMS to implement this common sense policy that we can further encourage more people to be screened for---- Secretary Burwell. I think we are---- Mr. Dent [continuing]. Colon cancer, and what was the impetus for including this in this year's budget? Secretary Burwell. Thank you for your leadership and effort in this space. And I think we are hopeful that this is something that is a change that people could agree on as part of the budget process, and when we have put it in the budget, it is because we believe we need to help to get it done. Mr. Dent. Well, good. I am pleased to see it in there, and it is something that we need to correct. Secretary Burwell. We look forward to working with you on it. NIH FY 2017 BUDGET REQUEST Mr. Dent. And my second question deals with the NIH issue, and I would like to discuss the discretionary funding cut the NIH faces in the proposed 2017 budget request. We provided NIH with a $2,000,000,000 discretionary increase in 2016, and I was more than a little surprised that the 2017 NIH request reverses this with a $1,000,000,000 decrease from NIH discretionary funds. The request presumes to backfill these dollars with mandatory funds, which are outside the jurisdiction of this committee room. And we believe that is a truly unacceptable budget gimmick. Further, it only assumes the mandatory funding for one year. In other words, it creates an out-year mandatory funding cliff of $1,000,000,000 in fiscal year 2018 that our committee would have to address. Mandatory funding cliffs are one reason we appropriators do not support switching discretionary programs into mandatory funding. The bill always comes back to rest at the doorstep for this committee to fix, and I certainly urge all NIH supporters, like myself, to avoid efforts to swap discretionary funding for mandatory funding streams. On top of this gimmick, the budget presumes to add another $825,000,000 in mandatory funds for NIH to support the Cancer Moonshot, Precision Medical Initiative, and the BRAIN Initiative, all good programs. Please discuss the impact on NIH if the authorizers don't act to provide mandatory funding. And specifically, how will this impact extramural investigator grants, success rates, and NIH's ability to sustain research supported with the $2,000,000,000 increase provided this year. Secretary Burwell. So we are appreciative of the increase that we received, and I think this is about putting the overall budget together in terms and why we took these steps. And I think in a world where--and this gets to Dr. Harris and some of his comments. In a world where we have a--one of the lowest discretionary as a percentage of GDP, which, when one thinks about your spending, thinking about the size of your economy, seems like an important way to measure. And as we think about that, the question is if that is the path we want to choose in terms of our discretionary levels, and that is--part of that is in terms of what deal we did on the sequestration and the replacement of it, and do we think we are at the right discretionary level? If we think we are at the right discretionary level, I think we wanted to stick with the agreement that we believe and have paid for. And one of the things that happens even when we do the agreements to raise the discretionary caps, often the pay-fors that we have in our budget are those that end up getting used. And so I think the real question, and I am very appreciative, as my former role in OMB, of the issue with the discretionary and mandatory. So I am very appreciative of the concern and the questions that you are raising. I respect those. But I think the larger question for all of us is do we believe that as a nation we are supporting the things that we need to support? And I think you know I came back to OMB with regular order, and I am so appreciative to Mr. Rogers and Ms. Mikulski for getting the first omnibus since 1987 in terms of regular order. And so I prefer regular order in a world where that may not be people's first choice because they have concerns with discretionary levels. That is part of why we are doing it. So I think what I am hopeful is that we, together, can have a real conversation. And that part of the conversation I think we can have because I think everybody is hopeful. I am so glad to hear all the hearings are going on. To me, that means regular order. And so that means that, hopefully, we will get this done in a June/July timeframe, and this can be a part of that broader conversation in terms of, and it relates--NIH is one piece of the issues that Mr. Rogers raised. Mr. Dent. I just want to conclude right now just to say that this is just one area where we are seeing mandatory programs--where funding is being diverted to mandatory programs. I have the same problem with the Veterans Choice Act. That funding is going to expire. It is going to fall on the Appropriations Committee to make it up in discretionary funds next year, but that is a subject for another day. Thank you. I yield back. Secretary Burwell. But I think it does get to the broader issue and why I think we should have the broader conversation. Mr. Cole. Thank you very much. As my chief clerk adroitly reminded me, the chairman had not had 5 minutes. So, Mr. Chairman, whatever time you care to consume, you are welcome to consume. Everybody else will be confined to the 2 minutes when their turn comes. CRITICAL ACCESS HOSPITALS Chairman Rogers. I will try to be very, very brief. The critical access hospitals, these hospitals face a unique set of challenges. In my rural district, we have seven critical access hospitals. Many of them are already struggling to keep their doors open. What do you believe will be the impact of these reimbursement cuts that you are proposing will have on these hospitals? Secretary Burwell. So with regard to the issue of rural health care and rural hospitals, I think you know because of where I come from, this is an important issue overall. And so there are a number of places in the budget in terms of A&R regulations where the issue of what it does to rural communities, and we can go into some of those places. But with regard to this specific question, I think it is our thought that because these hospitals actually are receiving more in terms of Medicare payments than noncritical access hospitals, they will be in a place where the impact of this change is not something that overburdens them too much, and that is why the proposal is as it is. But I think the broader question of how we support our rural hospitals is one that I think is an extremely important one. And throughout our budget, whether that is how we are thinking of providers in terms of some of our support for people that will tend to go to rural hospitals in terms of the public health funds that we do, to providers, whether it is how we are thinking about doing telemedicine and having Medicare Advantage. One of our proposals is that Medicare Advantage would be reimbursed in terms of telemedicine so that we can use those facilities, and those rural hospitals can benefit from that. And so we are trying to think about the issue of rural hospitals overall. Chairman Rogers. Good. Secretary Burwell. And the other thing, while it is not an issue in your State, in other States, we have seen a larger closure of rural hospitals in those that have an expanded Medicaid. That is not, you know, an issue in your State. PREVENTION OF OPIOID MISUSE, ABUSE, AND OVERDOSE INITIATIVE Chairman Rogers. Yes, thank you. Your opioid proposal is sweeping---- Secretary Burwell. Yes. Chairman Rogers [continuing]. To say the least, and I am pleased that the request clearly recognizes and acknowledges the importance of our fight against drug abuse. But I am interested to hear your views on how these new pieces of the puzzle fit together. Specifically, the degree to which the request relies on new mandatory spending, that part troubles me. For example, the budget allocates $1,000,000,000 in new mandatory funding to SAMHSA and HRSA for treatment programs. Fifteen to 20 years ago, Oxycontin was just rearing its head in Appalachia. Certainly, my district was the headquarters of that. Ten years ago, heroin was just a blip on the radar, but today opioid abuse has spread to every corner of the country. Cheap heroin is being laced with fentanyl, so strong that unsuspecting users die every day from overdose. With the fight against drugs changing at the speed of light, it seems irresponsible to tie our hands with inflexible mandatory funding. We need to be agile and move with the times, adapting to the needs as they arise. The only vehicle that makes that possible really is discretionary spending so that we can help you adjust to whatever takes place as we march down this path. What is your take on that idea? Secretary Burwell. First, thank you for your partnership and leadership. As you mentioned, we have worked on these issues together for a long time. And with regard to the specific issue because we put most of the money in treatment, specifically medication-assisted treatment. I think you and I have discussed the strategy. I think it is a bipartisan agreement. That is important. Those monies will all go to States and communities mostly in terms of improving their infrastructure and ability. Some of that is to train providers that would be--you know, you would want to continue, but that may be more one-time money. I think the question fundamentally, with regard to the medication-assisted treatment and the behavioral health issues, is historically in our country, we actually have had a situation where those are funded at the local level. And that is one of our biggest challenges right now, 85 percent of rural counties don't have behavioral health, and that is because often it is funded at the State and local level. And so I think, as we think through this question about discretionary, mandatory, short-term, long-term, we actually need to answer whose responsibility do we believe that is? And I think we are going to face these questions. We face these questions in Flint, as Ms. DeLauro mentioned. We face these questions in behavioral health. And whether that is the money we have put in for the 223 waivers that are part of that proposal or this. And so that, I think, is a part of the conversation we are going to need to have. Do we believe it should be the Federal Government's responsibility over the long term? And if we do, let us think about how we can find space on the discretionary side or lift those caps. Chairman Rogers. Well, we can continue to talk. Secretary Burwell. Thank you. Chairman Rogers. Thank you, Mr. Chairman. Mr. Cole. Thank you, Mr. Chairman. INDIAN HEALTH SERVICE Madam Chairman, I am next, and I am going to be very brief in my questions, almost code, to give you as much time of my 2 minutes I can to respond. I will warn you these are matters I will be bringing up with you multiple times probably in the months ahead. The first one, as you know, recently CMS flagged three Indian Health Service hospitals as ``posing an immediate jeopardy to the health and safety of their patients.'' Those hospitals are under the jurisdiction of your department. I take this very, very seriously. I have raised it with the Director of Indian Health this morning at an earlier hearing. I wanted to know that you are focused on this and you have a plan to deal with it. WELDON AMENDMENT The second question is the Weldon amendment. I am for a year and a half asked about--we get constant complaints that the State of California is not or is forcing institutions against their own conscience and creeds to perform procedures, abortions, that they don't believe in. We have been told there is an ongoing investigation. It shouldn't take that long. They either are or they aren't. But I would like you to respond to that and tell me where we are in the investigation. With that, I yield the balance of my time to you, Madam Secretary. Secretary Burwell. With regard to the second issue, when you and a number of your other colleagues contacted me and asked for an investigation to be opened, we opened that investigation. As you indicated, we are still in the middle of the investigation, and as I stated in the hearing yesterday, it has taken longer than I would like. Because the investigation is still open and has not come to closure, I am not able to comment in terms of that. And in terms of setting a timeline, I am not able at this point to do that. INDIAN HEALTH SERVICE With regard to the Indian Health Service issues, it is a priority, and I look for your support as we work through it. Right now, we have changed the regional leadership. We have added a deputy for quality and a deputy for management, both at IHS. And I have asked the Acting Deputy Secretary, Dr. Mary Wakefield, who ran HRSA, to have a cross-department effort so that we are bringing the best experiences of CMS, HRSA, SAMHSA, and any of the other best practices we have to increase the quality of the service that is being delivered at IHS because it is not satisfactory. Mr. Cole. I appreciate that very much. This is an area we have actually increased funding since 2008 by 54 percent. It has been a really good bipartisan effort to try---- Secretary Burwell. Yes. Mr. Cole [continuing]. And get at the problems in Indian Country and, frankly, one that the administration can be very proud of its role. So I look forward to working with you on that. And with that, I want to recognized my good friend, the distinguished ranking member from Connecticut. Ms. DeLauro. Thank you, Mr. Chairman. Just a couple of points. Labor, HHS is 32 percent of nondiscretionary spending. With that and our allocation last year, it should have been $10,500,000,000. If we were to get the additional $5,200,000,000 this time, we could avoid dealing with mandatory funds. Very quickly, secondly, the prevention fund, Secretary has no flexibility over that prevention fund because for the last 3 years, the Congress has made those allocations. We just ought to read the table. OPIOID MISUSE, ABUSE, AND OVERDOSE INITIATIVE Medication-assisted treatment. You are talking about your opioid initiative. I would like to have you talk about that. I had the opportunity to witness it firsthand at the New Haven Correctional Center a week ago. PRESCRIPTION DRUG COSTS Secondly, you have got some proposals on prescription drug costs, bringing that cost under control. I would like to have you just expand on that for a moment. The floor is yours. Secretary Burwell. I will do those backwards. As far as rising cost of prescription drugs, in this budget proposal, what you will see is we would like to move to close the donut hole faster, which will mean benefits. Right now, we have seen $20,000,000 in benefits to 10 million seniors. We would like to speed that up as one of the things to help with the costs for individuals. With regard to the overall cost, we have asked for authorities for specialty and high-cost drugs that we would have the authorities to negotiate. OPIOID MISUSE, ABUSE, AND OVERDOSE DEATH With regard to our opioid/heroin strategy, there are three main parts, and that is what the funding goes towards, these evidence-based strategies. The first is prescribing. We need to reduce the prescribing. You will be seeing CDC guidelines that will come out about prescribing. That is one of the things. There is some funding in the FY 2017 Budget Proposal to help support the implementation of those. The second is medication-assisted treatment. That is where the vast majority of the funding goes because we know as an evidence base, that is the place. There are supplemental proposals in our budget that include things like who can prescribe buprenorphine. We hope you will review those budget proposals as well. And the third element is naloxone or Narcan. And sadly, when people get to the place where overdosed, we must have tools for people to help them not die. Ms. DeLauro. Mr. Chairman, I would hope we could have a hearing on the high cost of prescription drugs in this committee and during this period of time. Thank you. Mr. Cole. Thank you. I next go to my good friend from Tennessee, Mr. Fleischmann. CYBERSECURITY THREATS Mr. Fleischmann. Thank you, Mr. Chairman. Madam Secretary, I am very concerned about the recent accounts of American hospitals and doctors' offices being the victim of ransomware and other cybersecurity attacks that have the potential to compromise or delete patients' personal health information and other critical and sensitive data that our healthcare delivery system relies on. I have two questions. What is the department doing in conjunction with other Federal agencies to address cyber threats to our healthcare system? And as a follow-up to that is, in your opinion, how serious is the ransomware threat, and what resources are you devoting to protect Medicare data from criminal security breaches? And with that, I will yield the balance of my time to you, Madam Secretary, so you can address that. Secretary Burwell. So an extremely important issue, and actually, HHS is one of the--I think it has been stated even this week has been recorded as one of the lead departments on cybersecurity. We need to do it across the whole department, but I think you are focused specifically on CMS. Some of the funds in our budget this time are very important funds to continuing our effort in cybersecurity. To answer your question about how important and how concerned we are about these issues, when I was confirmed on--for this job and had my first meeting with the issuers, everyone--it was June 9th, and so everyone thought I was going to talk about technology and the marketplace, which, of course, was a topic I should touch on, making sure we get that right. But actually, the topic I also wanted to talk on was cybersecurity, and that was in June of 2014. I think this is an extremely important issue that we need to all work together on. I think we need the best practices from the private sector to learn from them, but I also think making sure we have a close tie and connection because when this happens, there are questions of breaches of information that could be HIPAA violations for individuals, depending on what those are. And so making sure that we are working in a forum that we are doing our part as we can, learning from the private sector and making sure we are sharing as well. And that is not just at HHS. To your point, we coordinate with the FBI and others because when there is information that is important through DHS, we need to make sure that industry has information as appropriate around these issues. Mr. Fleischmann. Thank you, Madam Secretary. Appreciate your testimony today. Mr. Chairman, I yield back. Mr. Cole. Thank you very much. I now go to my good friend from Philadelphia, Mr. Fattah. EARLY CHILDHOOD EDUCATION Mr. Fattah. Madam Secretary, if we could turn our attention now to another part of your testimony today is around the Head Start and early education. So in Philadelphia, over $300,000,000 in Federal--mostly Federal funds are used to provide Head Start and early childhood education, but we are still only reaching something slightly less than 40 percent of the children, and there is more to be done. I appreciate the fact and will support the administration's request for $9,600,000,000 in Head Start funds. I also note that you want to create a $350,000,000 fund to work with States in terms of preschool development grants. Can you talk a little bit about how those dollars would be used and distributed? Secretary Burwell. So as we think about this continuum and our early education home visiting. Thank you for the support in MACRA in terms of home visiting. But we think about home visiting, early education, preschool, and child care and Head Start. They are together--Head Start serves a particular population, but we want to make sure certainly in our child care proposal we are serving more. In that early education money, those are monies that are generally targeted to more low-income communities through the States. And so some of those are for broader communities like child care, and Head Start and others are targeted more towards the low-income communities. Mr. Fattah. Thank you very much. Can you talk a little bit about where you think--because you know the Pew Foundation, which is based in Philadelphia, has done a lot of work with States, and in fact, many of our State governments have been at the very forefront of this work. And I know the administration has taken a leadership around these first 1,000 days of a child's life. It is critically important in terms of the networking for the brain and for all of the health-related issues that are very, very important. Talk about how you see the department's work now in conjunction and in working alongside of some of your colleagues like at the Department of Education and other---- Mr. Cole. Madam Secretary, you can talk about it, but be brief. Mr. Fattah. Oh, I am sorry. I forgot we were cutting it to 2 minutes. I will withdraw the question. Secretary Burwell. Thank you. Mr. Cole. OK. Thank you very much. I appreciate that. Dr. Harris, I don't know if you were here, but we are at 2 minutes. Mr. Harris. Two minutes. Mr. Cole. OK. NATIONAL CANCER INSTITUTE Mr. Harris. All right. Three very brief things. One, I am concerned, and I won't ask you to address it now. You know, we are almost one year out from--from the NCI Director announcing his retirement, and we still don't have an NCI Director. That is of concern for me, you know, when we are talking about Cancer Moonshots that, you know, the leading cancer person, his replacement hasn't been appointed. Let me just mention one other thing. You know, the rosy assumption in the President's budget, of course, is 4 percent GDP growth. We haven't had 4 percent GDP growth in 10 years. In fact, as you know, the last quarter was 0.7 percent GDP growth. So that is a really rosy assumption. And one of my concerns is that part of the Medicare savings, correct me if I am wrong, that is projected in your budget, that, you know, comes in under all--you know, balances, whatever you want to call it, is the change in the target rate growth from GDP plus 1 to GDP plus 0.5. Is that right? That does achieve some of the savings? Secretary Burwell. With regard, I will have to go back---- Mr. Harris. The Medicare---- Secretary Burwell. I will have to go back and check, Congressman. Some of these questions in terms of those are--are no longer---- Mr. Harris. Well, I am assuming, since it triggers the IPAB, the Independent Payment Advisory Board, at a lower rate, you must be making that to achieve savings, I would imagine. My concern again is with the Independent Payment Advisory Board. No one has been appointed to it. It is going to be a rationing device, and I just hope Medicare beneficiaries realize what the--what your budget does to Medicare over the next few years. ZIKA VIRUS RESPONSE Finally, with regards to the Zika request, is it my understanding the administration said they actually want to use some of the Ebola leftover money for malaria last week? Secretary Burwell. Well, with regard to that, that is a question that would go to the State Department or USAID. Those are funds that are in their areas, not in mine. Mr. Harris. So if that is true, the administration has already made a decision to use some of the Ebola monies for other diseases. And I would just suggest that that is what the State Department thinks they ought to do, that is what you ought to do for the Zika and not come in with a budget-busting $1,800,000,000 request. And I yield back the time. Mr. Cole. Thank you. The gentlelady from California is recognized for 2 minutes. UNACCOMPANIED CHILDREN Ms. Roybal-Allard. Madam Secretary, in your response to a question that was asked by my colleague Mrs. Roby, you said that it was your job to make sure unaccompanied children were safe. And so I was truly shocked to read about the release of unaccompanied minors from ORR in care into the hands of human traffickers, as was documented by the Permanent Subcommittee on Investigations in the U.S. Can you tell me how much money is ORR requesting for home studies, which investigates the background of sponsors before children are released to them and post release services in which HHS can continue to check in on a child? And is the amount requested sufficient to take care of the anticipated number of unaccompanied children? And if you have the time, if you could comment on the department's plan to continue and expand the pilot program where home studies are now required for all unaccompanied children 12 and under placed in Category 3. Secretary Burwell. The issue in Ohio is a tragic one of people breaking the law, and we will work with the Justice Department to do everything we can to the full extent of the law in terms of that tragic circumstance. With regard to the overarching question of how we do this, there have been a number of improvements that we have made over time with regard to the safety of the children. And whether that is background checks on all adults who might be in the home, whether that is follow-up calls, whether that is 1-800 numbers, there are a series of those steps. I am happy to get those to you. With regard to the funding issue, because of the unpredictability of the flows, as we discussed with Congresswoman Roby, our ability to do certain parts of this is dependent on the funding flows. Our ability to answer the question you asked would be enhanced greatly by having $400,000,000--the contingency fund that we have put in. Because that way we could actually focus on if there is a flex, we would know where we would get that money, and we wouldn't use it unless we needed to flex. And then we could have surety of our money for the other services we provide. Mr. Cole. Thanks very much. The gentlelady from Alabama is recognized. OFFICE OF REFUGEE RESETTLEMENT Mrs. Roby. Madam Secretary, I would appreciate, based on that last line of questioning, the opportunity to discuss that further with you. The GAO issued a report of the ORR, and it is quite concerning. They uncovered myriad problems regarding the handling of the detained minors--abuse, lack of oversight, a lack of control over the whereabouts and livelihoods of these minors. So what I read in the Washington Post certainly, and I am sure you saw that article as well, doesn't give me any confidence about what is actually happening within the department, particularly if we have another influx, as is being predicted. So what are your comments on GAO's findings, and how is your agency addressing the concerns that were outlined in the GAO report? Secretary Burwell. With regard to the specifics, as I said, we have made a number of improvements. But I would have to see which report at this point, in terms of the GAO report, the IG report, and I want to make sure I am referencing the right report. And so we can come back on that. But a number of improvements are made with regard to the children. What I would say that is so important is our ability to focus on those issues is extremely important. We want that, and I think you know I came to the committee and asked for additional funding for this year, the year we are currently in, the fiscal year we are in, not the budget conversation we are having. I asked. I sent letters. I talked to all four corners, all of those, because this ability to have standardized funding that we know we can depend on is a part of our ability to manage these problems well. And so that is the one thing as we are having this conversation especially around the budget that I think is extremely important. We want to hear if people have suggestions for things we can do more. I think you have heard we have made a number of changes to make sure that we are checking the children, things are checked before. You know, many of these children go to their parents here, and that is one of the issues that I think is an important one to recognize, that they are children. They make the journey, and they actually are placed with their parents. We still do checks in terms of that as well. Mrs. Roby. I yield back. Mr. Cole. Thank you very much. And for the last questions of the morning, I recognize the good gentleman from Pennsylvania, Mr. Dent, for 2 minutes. BIOMEDICAL ADVANCED RESEARCH AND DEVELOPMENT AUTHORITY Mr. Dent. I will keep it real quick. Thank you again, Dr. Burwell. Just on the issue of BARDA, and I just wanted to make, I guess, a quick comment. It is my understanding that a vaccine platform, these technologies or these platform technologies could now be called upon to quickly develop a Zika vaccine and in general respond more expeditiously to the next outbreak or threat. What is BARDA or HHS doing to support and facilitate platform-based technologies against known and emerging threats? And I mentioned Zika, but you know, there are other threats that are out there, obviously, from SARS, Ebola, H1N1 and H5N1, et cetera. So could you comment on that? Secretary Burwell. Right now, BARDA is a part of conversations that we are having with the private sector, and it is not just in the vaccine space. It is in the diagnostic space as well. Certainly for Zika, but for many other things as well, and so--and in the treatment place. Mr. Dent. CDC, right? CDC doing the diagnostics or---- Secretary Burwell. Ah, yes. CDC is doing the diagnostics, but we are really looking for private companies to actually take over manufacture of it because right now, it is all happening through CDC. We also would like to see the private sector improve the technology. We have a technology. This is one of the difficult things about Zika. The diagnostic that is for you have the full-blown disease, it works pretty well. We know that you have Zika if you are symptomatic and we test you. If you have passed and we want to test you--you went to Mexico, you came back. Eighty percent of people don't have symptoms, and we want to test you for that, that is a problem because we could show a positive, but you actually could have had chikungunya or dengue instead. And so, our ability on that, so we are looking to the private sector as we advance. We will move as quickly as we can, but we are happy if the private sector can. So BARDA is playing an important role. In the supplemental, you will see funding asked for for that. Mr. Dent. Thank you. I will yield back my last 18 seconds. [Laughter.] Mr. Cole. I thank the gentleman for his generosity. Madam Secretary, I want to--this is probably your last appearance before this subcommittee, although we will certainly have the opportunity to continue to work together for the balance of the year, which I look forward to a great deal. And again, I want to echo and reinforce the sentiments of everybody on this committee on both sides of the aisle about how much we appreciate your service, what you have done, what I know you will do in the next year, what a delight it is to work with you. Frankly, how thorough and professional you are and, frankly, how much we will miss you in front of this committee, although I suspect you will not miss us very much. [Laughter.] Mr. Cole. You have hardly been able to wipe the smile off your face as the minutes have ticked down. So I recognize that, but you will be missed by both sides of the aisle. And thank you very, very much for your distinguished service to our country in a variety of capacities under two different administrations. It is something that you can take a great deal of personal pride in. It is something that, again, every Member on this dais certainly respects. Secretary Burwell. Thank you, Mr. Chairman. Thank you. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Tuesday, March 1, 2016. BUDGET HEARING--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE WITNESS WENDY SPENCER, CHIEF EXECUTIVE OFFICER, CORPORATION FOR NATIONAL AND COMMUNITY SERVICE INTRODUCTIION OF WITNESS Mr. Cole. I will go ahead and convene us, and I will get to my opening statement, but before I do, as we were discussing, Ms. Spencer, in the back, it has been 16 years since this committee has had the opportunity to hear about some of the wonderful things you are doing at the Corporation for National and Community Service, but it hadn't been 16 years since any of us have seen you. We see you regularly around the country and across our districts, and so I appreciate very much the manner in which you run your agency, and frankly, how accessible you have been to every member of this committee, quite frankly. So it is a genuine pleasure to have you here. Good morning. Again, my pleasure to present Ms. Wendy Spencer, the CEO of the Corporation for National and Community Service to the Subcommittee on Labor, HHS, and Education to discuss the agency's fiscal year 2017 budget request. We are looking forward to hearing your testimony, especially since it has been quite a while since this subcommittee has held a hearing on the Corporation's budget. We tried to have you up last year, but unfortunately, we had to cancel because of conflicting schedules. So we are very happy that you are able to be here today and join us. America has a long and rich history of service and volunteerism. About one in four Americans formally volunteered with an organization in 2014, contributing in ways ranging from tutoring to preparing meals for the homeless to assisting their neighbors in the wake of natural disasters. The Corporation's programs support, enhance, and expand upon these efforts through helping to build capacity at the State and local level and by awarding grants to place volunteers where they are needed across the country. Both the Corporation and Congress have a responsibility to conduct oversight of the Corporation's approximately $1,000,000,000 in budget authority to ensure that taxpayer funds are being spent wisely. We look forward to hearing about the Corporation's accomplishments over the past years and plans for the upcoming fiscal year. As a reminder to the subcommittee and our witnesses, we will abide by the 5-minute rule so that everyone will have a chance, but we may be a little more generous on the 5-minute rule than normal. So anyway, again, we are very anxious to have you here. And with that, I would like to yield now to my ranking member, the gentlelady from Connecticut, for her opening remarks. Ms. DeLauro. Thank you so much, Mr. Chairman. And my apologies for being late, but great to be here. And as I said, listen, if it is the two of us, it is the two of us. Why not, you know? So here we go. I want to say thank you for holding the hearing because I think we share the view that the programs we speak of this morning tap into one of the best attributes that we have as a nation. National service is a core American value. It makes this country exceptional. Service provides an unparalleled richness for those that participate and gives citizens the greatest potential to change the face of the communities that they serve. So I welcome you, Ms. Spencer. I look forward to talking with you. And yes, it has been 16 years, and we know we tried last year, so delighted you are here today. But fortunately, your work over these years has demonstrated how valuable these efforts are. The Corporation for National and Community Service was founded on the idea that government can and should play a role in giving citizens the opportunity to address pressing problems across the country. It is a powerful idea that carries on despite whatever happens in this institution on both sides of the aisle. Last year, we were able to make important investments in the Labor, HHS bill, including a small, much-needed increase for the Corporation. We provided an additional $50,000,000 for AmeriCorps, an additional $10,000,000 for the National Service Trust. We supported an increase of more than 10,000 new AmeriCorps members to serve and created new opportunities in communities across the country. And in many ways, last year's omnibus moved the Federal budget in the right direction. The chairman has heard me say this last week, and he will continue to hear me say this. With Labor, HHS, we received a fraction of what I believe is our fair share last year of the $66,000,000,000 increase that was provided by the budget deal. Other nondefense subcommittees received an average increase of 6.9 percent. Labor H was about 3.4 percent. And we do have 32 percent of the nondefense discretionary budget. So the issue for me is how we continue to try to move in a direction that allows us to get increased resources in order to meet the needs, your needs and our needs. Because if we take a look at what happened last year and we reversed it, we had a House mark that slashed the Corporation's funding by $367,000,000. It was a cut of 35 percent. And that would have really decimated programs that serve millions of our most vulnerable citizens. And fortunately, really, and I mean that very sincerely because it was hard-fought to get an agreement and to avoid what were harmful cuts. So again, it is the richness of the experience that these programs provide. It makes young people really become engaged in the fabric of our society so they are not little islands by themselves, but they understand that they have a responsibility, that they are not out there for himself or herself, that we share a responsibility for what happens in our country. And that helps us to move the needle on the great issues of the day. Volunteers today are preserving our parks, our public lands, mentoring our students, providing job training for veterans, responding to national disasters, and as I said, supporting our most vulnerable citizens. Communities want programs like AmeriCorps. In 2015, CNCS was only able to fund a third of all grant applications that it received. Last week in our hearing with Secretary Burwell, we talked about the tragic situation in Flint. Thousands of children have been exposed to lead-poisoned water for more than a year. Your folks have responded to this crisis working with Michigan agencies, nonprofit organizations for the past few months to address the crisis. They are boots on the ground. They are there. Nine members of AmeriCorps National Civilian Community Corps are on the ground in Flint. They are going door to door. They are trying to educate residents on using water filters appropriately, providing information on nutrition related to lead exposure. I am going to be in Flint on Friday, and I would love to talk with you about trying to get to meet some of your folks there. Senior Corps volunteers and other CNCS member volunteers are assisting in public education, providing bottled water, managing donations, helping to process hundreds of non-CNCS volunteers, placing them where they are most needed. This is why our investment here is essential. You connect volunteers to communities in their hour of need. I am pleased in the budget to see a request for a modest increase to the VISTA programs, an additional 230 full-time VISTA members who commit to serve for a year in some of our most impoverished communities. I am disappointed to see level funding for the National Senior Volunteer Corps and that the budget request is more than $50,000,000 below the agency's budget. As I have said, this is a smart investment in these programs. You help Americans graduate. You help people pursue higher education and find work. So, again, every dollar invested in national service results in a return to society of nearly $4 in terms of higher earnings. I will repeat something that I have said, and that is these programs are so important, and that is why I will continue to fight for a higher allocation for this subcommittee for the good of the communities who depend on us. Thank you so much, and we look forward to your participation and your discussion. Thank you, Mr. Chairman. Mr. Cole. Before we move to you, I know my friend from Connecticut will know that while I appreciate her efforts, I am always happy to see level funding because that is probably what I am going to get. So I am very grateful that you have come in the door that way. That is a good start. [Laughter.] Mr. Cole. But with that, if we may, Ms. Spencer, let's turn to you for your opening remarks and then we will move to questions and answers from the committee and obviously from yourself. WITNESS OPENING STATEMENT Ms. Spencer. Thank you so much, Chairman Cole and Ranking Member DeLauro, Congresswoman Lee. It is really great to be here, and this is a wonderful opportunity for us to testify. We are grateful for the funding increase Congress provided last year to support our vital work. And I want that to be noted. We are very grateful and very appreciative. Our 2017 budget request is $1,100,000,000, which is almost level funded, as you mentioned, from last year. This budget will support our mission to improve lives, expand opportunity, and tackle some of the Nation's most important needs. Allow me to describe some of our work to you. First, we empower citizens to solve problems. Senior Corps and AmeriCorps members serve at more than 50,000 locations across the country. These dedicated Americans serve in tough conditions to meet local needs like tutoring and mentoring youth, eliminating hunger, responding to disasters, supporting veterans and their family members, just to name a few, all while recruiting millions of Americans to serve alongside them, multiplying the impact. Second, we leverage substantial outside resources. I am very pleased to share with you today that for the first time in our agency's history we were able to report that our local support has exceeded our Federal appropriation, a goal of mine since I started 4 years ago. Last year, our programs generated $1,260,000,000 in required match, additional resources from corporations, foundations, local community organizations, and also resources raised by our members. This local support boosts our impact and stretches the return on the taxpayer dollar, so I am very, very proud of this announcement, which we have just been able to make. Third, we really recognize and support local control. Governors play a very key role in deciding where AmeriCorps resources go through State service commissions, as an example. Local groups recruit, select, and supervise their members. This is done at the local level. Mayors and county leaders also see us as a key partner. In fact, last year, just shy of 2,800 mayors and local leaders and tribal leaders representing 150 million Americans united to recognize AmeriCorps and Senior Corps on a single day. And fourth, we expand opportunity in so many ways like keeping students on track to graduate, housing homeless veterans, helping seniors live independently, and connecting people to jobs. Plus, AmeriCorps members provide valuable skills and scholarships to help themselves. These scholarships pay back college and student loans or help them go to college for the first time. It is a great benefit if you want to serve and you can receive a benefit to increase your higher education goals. Our 2017 budget builds on this foundation to meet community needs with greater impact, accountability, and efficiency. Our budget request supports the following: 88,400 AmeriCorps members serving in programs that depend on their skills and their leadership, programs like Habitat for Humanity, Teach For America, City Year, Catholic Charities, Veteran Corps, conservation corps, and in tribal communities. It also supports 270,000 older Americans in Senior Corps programs while introducing competition to Foster Grandparents and Senior Companion. It will help support evidence-based programs through our Social Innovation Fund, including our Pay for Success pilot. And it will support investments in our IT systems to increase accountability, efficiency, and provide first-rate support to our grantees and partners, something we need and it is overdue. So, Mr. Chairman and members of the committee, our programs empower citizens. They bolster civil society, expand opportunity, encourage personal responsibility, strengthen our communities, and I contend they unite us as Americans. Thank you for your support. Thank you for inviting me today. It is a true honor to serve in this role to help engage Americans in service and help support our local organizations. I am happy to answer your questions. And as always, I seek your guidance and advice. Thank you. [The prepared statement and biography of Wendy Spencer follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] SOCIAL INNOVATION FUND Mr. Cole. Thank you very much for your testimony. If we can, I want to have a couple of questions that will focus around the Social Innovation Fund in particular. In your budget justification, you mentioned several examples of positive outcomes that stem from efforts supported by the Social Innovation Fund such as improving employment retention for individuals that participate in job-training programs and increasing reading proficiency among K to 12 students. However, the process and criteria by which grantees and especially the sub-grantees are chosen in this program is a little unclear to me. So would you just elaborate about how you go about making the decisions on grantees and sub-grantees? Ms. Spencer. Thank you for that question. So the Social Innovation Fund is something we are very proud of. It is one of our newer programs in our 21-year history. We have been working on this for 6 years now, so it is a new program. And we are always looking for ways to improve it. But what I like most about the Social Innovation Fund, two things. One, it really does a deep dive on some of our nation's most difficult problems, addressing chronic homelessness, chronic unemployment, third-grade reading level for our students. So it really goes after some of the toughest problems with a surge of investment both at the Federal level and even more so at the local level. The financial match for this program is really rigorous. It is almost three to one. The minimum grants are $1,000,000 to the intermediary. It has to be matched by cash, dollar for dollar. And then when that intermediary is selected, they then have to subgrant out their grants in $100,000 minimum increments and that has to be matched at the local level dollar for dollar. So it is a very, very significant investment from the private sector. In fact, over the last 6 years, the Federal investment is about $270,000,000, and the local investment is exceeding $580,000,000. Now, let me just make this, you know, to a personal one, a couple that I visited, and I really like this example. REDF is a program that focuses on chronic homelessness and unemployment. One of the sub-grantees is called Chrysalis. And I went in and met some individuals who have been unemployed and homeless virtually all of their adult lives, grown men in their 40s and 50s. And for the first time in their lives, they now have housing and a job, and the way they have it is the Chrysalis organization worked closely with them to provide a job through what they call a social enterprise. They have pest control services, they do corporate cleaning, they do wonderful training in addition to this. And the one gentleman that I met who had been virtually homeless his entire life, he said this is the first time that I have had a job that I feel confident in and that I can do. One was working in pest control services, something that he could train for easily and be on time for and be prepared for. And the other gentleman is now driving a garbage truck for the local county. So how do we get there? We get there through a rigorous competition. We had great interest in our applications. But it is difficult because you have got to have so much match from the local level, and it is hard for intermediaries to do that, especially when we started, which was right in the beginning of the recession. But one of the things that I asked these intermediaries, I said how have we been able to scale your program? And they said the thing about partnering with the Federal Government is that this was a seal of approval. We were able to get to the table new funders for the first time from foundations in the private sector because we were qualified to meet your rigor. We were also able to increase existing investments from organizations and foundations that we haven't been able to do in the past. So that is what they have told me, and it has been consistent. So I do believe the process is very rigorous, but I always welcome improvements. It is new to us, so we are always trying to grow. Mr. Cole. Thank you. I will have some other questions, but in the interest of time, let me go to the gentlelady from Connecticut for her opening questions. EARLY CHILDHOOD EDUCATION Ms. DeLauro. Thank you very much, Mr. Chairman. And I would just say I think that we helped to restore funds in that program last year, and I think the explanation that Ms. Spencer has given us about the value of the program moves us in the direction of looking at really public investment and private investment and making it work. And that is a goal that we really all have here. Let me ask about early childhood education and your work. Six million kids ages 5 and younger living in poverty in the United States. Deficits lower-income kids face during early years leads to unbelievable struggles later with academics, behavior, absenteeism. Between birth and age 6, children from more affluent families will have spent as many as 1,300 more hours than poor children on child enrichment activities, music lessons, travel, summer camp. Without early learning, low- income kids enter kindergarten as much as 60 percent behind their more affluent peers, and that gap just persists through adulthood. In your testimony, you referred to the support that CNCS provides to schools through tutoring and mentoring programs. I am particularly interested in programs that support our youngest kids who are living in poverty. What early childhood programs do you all partner with? What percentage of your resources go to these programs? Is there a waiting list of early childhood programs that would like to work with you? And is there more you could do if you have additional resources? Ms. Spencer. Thank you so much for that question. This is an area that I am very passionate about. And let me tell you our footprint so you have a real clear picture, as you asked. We have six areas that we focus on: environment, education, economic opportunities, disasters, veterans and military families, and healthy futures. We could legitimately make a case to you to divide our funding six ways because those are all very important areas. But we have decided not to do that. Half of our budget and half of our resources are focused on education. And I do contend that many of those other problems in the other areas can be supported through education and having a better-educated America as well. So it is very important that we are focused on this. Our footprint is we looked and we counted between our Senior Corps, AmeriCorps and the Social Innovation Fund. We are serving of at least unduplicated grant and resources in 11,714 schools. That is huge. With 100,000 public schools in America, that is right at 10 percent. Of those schools that we are serving in, one in four of those are persistently low-achieving schools. So I feel like we have got them in the right places. Now, early childhood examples, one of my favorites is the Minnesota Reading Corps. We did a rigorous third-party evaluation recently on the Minnesota Reading Corps, which was started in Minnesota and now is in 12 States, including DC, so it is being replicated, which is another passion of mine. Let's find what works and let's replicate it across the country. Here is what it told us: This program is enrolling full- time AmeriCorps members as tutors, full-time, key word. They are tutoring in schools everything from preschool, kindergarten, first, second, and third grade. This study was really focused on kindergarten and early childhood, and here is what the study told us, that those students who had the access to the training and tutoring by the AmeriCorps members, the Minnesota Reading Corps AmeriCorps members, outperformed students that did not have access to AmeriCorps tutors, almost twice as much. And they outperformed in all five literacy testing areas that they looked at, all five. So this showed us that it is working. And I was so happy to be able to provide this evaluation, which I am happy to provide to you and your staff---- Ms. DeLauro. Yes. Ms. Spencer [continuing]. In full. But that tells us we are doing the right thing. And we have learned over the years that education really is the sweet spot for service. It is a great way for us to increase volunteerism as well. And I serve as a volunteer each week in an AmeriCorps program myself, and it is a curriculum-based program. It is not just I walk in and read to a student. I work through a curriculum. So it is working and we are focused on it. Ms. DeLauro. Thank you. Do you deal with the HIPPY program, the Home Instruction for Parents of Preschool Youngsters program? Ms. Spencer. I feel that we do, but I can get back to you more but---- Ms. DeLauro. Please do because, Mr. Chairman, let me just tell you, my stepdaughter, who is now married with two children, she came home after she finished, you know, and she was in school and she said after college she was going to get a job and she was going to go work for the HIPPY program. Well, Stan and I were not quite sure what she was really going to do at that juncture---- [Laughter.] Ms. DeLauro [continuing]. But it is the Home Instruction for Parents of Preschool Youngsters. This is working with parents and their children and using parents as a vehicle for reading and for their kids being able to be literate, and it follows a very strong curriculum, et cetera, to move forward on so---- Ms. Spencer. Right. Ms. DeLauro [continuing]. A good investment. Thank you very much. Ms. Spencer. Thank you. Mr. Cole. You may have dated all of us who laughed so---- Ms. DeLauro. Right, exactly. Mr. Cole. All right, good. We will go to my friend from California, the gentlelady, Ms. Lee. COMPUTER SCIENCE AND TECHNOLOGY TRAINING Ms. Lee. Thank you very much, Mr. Chairman. First, welcome, and thank you very much for your testimony and for your service. Programs like AmeriCorps VISTA, I mean, the taxpayer gets a heck of a lot for our investment, and I, too, believe we need to increase the budget, flat funding, fine, but for what you do and for what these volunteers do, we are saving a lot of money and providing real pathways out of poverty at a very cost- effective rate. And so I think overall our committee is still 10 percent below pre-sequestration levels, so of course I join with our ranking member in wanting to see more funding for your very important agency. A couple of things just as related to my district and how I know AmeriCorps VISTA, and what you are doing, the Reading Partners, you partner with local districts. And in my area, Oakland, Berkeley, San Leandro, you all help, the volunteers help lifelong readers, you provide critical one-on-one tutoring, and really ensure that children receive the literacy skills that they need to reach their fullest potential. It is still mind-boggling to think we have a literacy problem in America. And so what your volunteers are doing really makes it very clear what the benefits are by enrolling them in Reading Partners. It doubled their rates of learning, I know, in my district. I chair the Congressional Black Caucus's Tech 2020 Initiative, which is an initiative to ensure that all Americans, including African Americans and people of color, are included in the levels of technology that we see booming in our country. And we are way under in terms of parity in the tech field. So I am pleased to see that the President's budget includes $135,000,000 in existing funds under the STEM AmeriCorps program, which is in partnership with the National Science Foundation, to help teachers learn computer science fundamentals and to really teach and inspire the next generation of STEM teachers. So how do you see this through this partnership and the training of computer science teachers? Because they are directly building a pipeline for everyone, including communities of color, into the STEM and tech workforce, yet teachers need this training. And so, once again, I think we need more resources for this, but I know in my district, again, in the city of Oakland, we care much about ensuring that all young people have access. And this is clearly a pathway out of poverty, but again, I don't think the budget is adequate enough for that. Ms. Spencer. Well, let me talk about Computer Science for All, a brand-new initiative we just announced, and also share a comment about Reading Partners. That is the program that I am a volunteer with. So the way Reading Partners works is there is an AmeriCorps member who is well-trained in a very rigorous science-based, research-based reading curriculum program. So one AmeriCorps full-time member is in a school, and in my case here in DC, it is at Shaw Elementary School, and Elizabeth Strader is the AmeriCorps member. She has 83 of us, so there are 83 volunteers. We all go through training. We are matched with our mentee. Mine is a first grader. I have been doing this for 4 years, a different child every year, and I hate breaking up with them because I love, I love my children. But what is great is, as I work through that rigor, at the end of the year I get a report card on my student and I see her gains in her literacy levels. That is a really good program. So Reading Partners is a great example of leverage, right? One AmeriCorps member is leveraging 83 volunteers. We are all committing and working with the students. So I am glad we have a great presence at Oakland. Computer Science for All is exciting for us. So this is where we try to get very creative and figure out here is a problem. What can we do with our resources to do something different and unique? And I am always willing to experiment, especially when it is in the education arena. So what we have done is we have set aside $17,000,000 in our education awards, college scholarships. That is going to be set aside for up to 10,000 teachers over the next couple of years for them to use that towards training to learn coding, to learn computer science, to be able to maybe have them teach afterschool, summer courses. Some of our teachers need extra income. And so they are going to be able to do some service, in exchange for the service get scholarship money from us, they learn to teach these afterschool programs and summer programs, and integrate it into their classroom if that is appropriate. We have got to get more teachers in the STEM area, and I don't know if this is perfect, but I am willing to try anything. So this is our first shot at this, and I think it is going to be exciting. Ms. Lee. Thank you. Mr. Chairman, I would just say that if the Department of Ed. funded this, it would probably be millions more than what this budget suggests. And so once again, big bang for our bucks. Ms. Spencer. Thank you. Ms. Lee. And thank you very much. Ms. Spencer. Thank you. Mr. Cole. Thank you. We will next go to my friend, the gentleman from Philadelphia, for any questions he cares to ask. Mr. Fattah. [Audio malfunction in hearing room.] Mr. Cole. Actually, you were here before Congressman Dent so---- Mr. Fattah. Well, let me proceed then. Let me thank the chairman and thank you for your great service. You have a long line of people, you know, playing an extraordinary role in building this organization, and I think the storm clouds have passed and the Nation has fully embraced AmeriCorps under your stewardship. So thank you---- Ms. Spencer. Thank you. Mr. Fattah [continuing]. Because I think it means so much for improving the life chances of young people throughout the country. And the service they provide, you know, I am convinced that they get more out of it than the very-needed service that they are providing to others. So I visit schools regularly, and in dozens and dozens of schools in my district in Philadelphia in which when you show up, the AmeriCorps volunteers, corps members who are there both in our City Year program and community, there has been Learn to Serve efforts. You get older students working with younger students, which has been quite an extraordinary lift because both sets of grades go up---- Ms. Spencer. That is right. Mr. Fattah [continuing]. Both for the tutor and the young people who are receiving the tutoring. I met a young man who is in PowerCorps now, and he had recently been engaged in some antisocial activity and then had an epiphany, Mr. Chairman, and decided to move in the right direction and now is just doing great work at a community level. So, you know, our job here is to dispense, you know, discretionary dollars. I can't think of a better place for us to be investing them. And I got a chance to speak at a graduation, conclusion of a training session for some of your VISTA AmeriCorps members in Philadelphia, but they were from around the country and we were glad to host them. So I don't know, as we go forward, because there is going to be a change in administrations, but I think one constant will be national service and AmeriCorps. And as you think about, you know, what is going on in the country--today is the founding of the Peace Corps in 1961 by John Kennedy--I know that you are now 22 years old. I know this because I was around, one of the cosponsors when we created this program. And there were some challenges, Eli Segal in Harris Wofford's period, and I was with Harris on Martin Luther King Day, that day of service and we had tens of thousands of volunteers---- Ms. Spencer. Right. OPPORTUNITIES TO GROW NATIONAL SERVICE Mr. Fattah [continuing]. In Philadelphia for that activity. But as you think about the bigger picture now for the Nation, not about, you know, whether or not we are going to, you know, be able to deal with small incremental bites, but if you would talk to the committee about what you see as, you know, the opportunities to further build on national service for whoever may be coming in as the next President and the next administration. I would be interested in your insights. You have seen the country, you have seen what is going on out there. If you would share with the committee--the chairman is interested in big picture and not just small picture issues. It will be helpful to us as we go forward to get a sense of what you think is doable. Ms. Spencer. Thank you so much for that very thoughtful question. And you mentioned two giants in the national service. Eli Segal, sadly, is deceased, but Senator Harris Wofford, he is doing fantastic. And no coincidence I was inducted into this job on his birthday, April 9, so we share a great bond in many ways. I would like to share with the committee that this year we will induct the one millionth AmeriCorps member. It is pretty exciting, just 21 years ago when this idea was conceived so that we will have one million. So where does that take us? I am seeing these AmeriCorps alums all over the country. I went to a national conference on volunteerism that had some of the strongest nonprofits in the country in Houston last year, several thousand people, and the question was asked, how many of you are AmeriCorps alums? And half the audience raised their hand. They are now running nonprofits. They are engaging volunteers. They have taken what they have learned in their year of service and they are using that for the greater good of communities. A longitudinal study tells us that 60 percent of AmeriCorps alums pursue public service. That is a great need. While we do need our young people pursuing STEM, we can't overlook teachers, public service, law enforcement, nonprofits, the faith community. We need leaders in these careers as well. So I am so pleased that national service helps influence young and old and how they can contribute back. And one thing that excites me, too, is the number of young men who join AmeriCorps for lots of different reasons. Some are between college and high school or after college or trying to figure out their way and they serve in an education program. And so many of them have told me I have decided to change my major from business to education, from engineering to education, from this to education. And I ask them why? And they say when I am in the classroom, as a male figure, I can tell that these young boys are starved for attention and leadership in role models, and I am so drawn to the influence that I can give to them and I want to be in a position to do so. So I think there is a great future in attracting men to join as teachers as well. So I am excited about the future. One thing from our research we know is that if you volunteer, especially at an older age, you live longer. This is research-based. You are happier. You reduce your stress. It has health benefits, physical health benefits. As many of you may have seen, the 106-year-old who was in the White House last week and was dancing in the White House-- -- Mr. Fattah. Dancing with the President, yes. Ms. Spencer. That is Grandma Virginia McLaurin, who I call a friend, who will be 107 in a week and we will celebrate her birthday. She is a current Foster Grandparent. She is a current Foster Grandparent, and she does a great job. She walks to her service, her school, and she says oftentimes people offer to give her rides; she says no, I need the exercise. [Laughter.] Ms. Spencer. But what is great is she is still contributing. And I have talked with her, and it is amazing. So it is an opportunity for our young and our old. My challenge to young Americans in particular, is that everyone should give a year of their life either to our military or pursuing public service, joining AmeriCorps, doing an internship at a nonprofit, serving with your faith community, but give something back. And I think that that is the direction we need to go in because I know it bonds America. When you serve with people from different walks of life on a common purpose, you become more tolerant of their ideas, their religion, their background, and that unifies Americans. In fact, it unifies the world. So I hope that is the direction we go in. Mr. Cole. Mr. Fattah has managed to use your enthusiasm to get an extra 2\1/2\ minutes. That is very clever---- [Laughter.] Mr. Cole [continuing]. Very well done, but for a good cause. Mr. Fattah. Thank you, Mr. Chairman. Ms. Spencer. Thank you. Mr. Cole. Yes. I want to go to my good friend from Allentown, Mr. Dent. Mr. Dent. Thank you, Mr. Chairman. Well, it was worth the extra 2\1/2\ minutes. It was a good discussion. [Laughter.] VETERANS AND MILITARY FAMILIES Mr. Dent. In addition to serving on this subcommittee, I have the honor to serve as a chair of the subcommittee dealing with military construction and the VA. And recognizing that one of the focus areas of CNCS is veterans and military families, can you share with us how you are working with the VA at the Federal level and with individual State veterans' agencies that best coordinate those types of efforts to ensure that your investments are augmenting underserved areas or populations instead of creating redundancies? Ms. Spencer. Thank you so much. You have hit on something very personal to me. I am the daughter, granddaughter, wife, and stepmother all to men who served in all areas of the military, so it is very personal to me that we make this a focus of our agency. And just to give you a little bit of the footprint, we love to count, and we have been able to determine that of our 75,000 AmeriCorps members and 270,000 Senior Corps volunteers, that 23,000 veterans are serving today in our programs. I am very, very proud of that because I do think it is an opportunity for veterans to continue to serve, and we welcome their expertise and what they bring to nonprofits and to solving problems. Last year, we were able to support 780,000 veterans and military family members in our programs, in hundreds of programs that are focused on this either as a core part of the mission or as a part of their overall efforts. So a couple of areas that we are working on, one is with Veterans Affairs that you mentioned that I think is something of great interest to them is to make sure that every veteran has the opportunity to use the G.I. Bill to the fullest extent. This is a great benefit that we provide our veterans. But sadly, not all of our veterans are successful in their experience in attending college and graduating. Far too few than should be graduate from college because they run into obstacles. Now, sometimes, these obstacles are returning back from war. It is a difficult transition not for all but for some, and it is hard to get right into going to classes and being free of maybe physical and mental needs and support at the local level. So one of the ways that we decided to tackle this if you will is with a program called the Washington Vet Corps. And I love this program, and I have met these AmeriCorps members in Washington, in the State of Washington. The idea is that you take a veteran, and they become an AmeriCorps member, and they are placed in a college. And all the State schools in the State of Washington have this access to this program. That AmeriCorps member who is now a veteran is the key person for the veterans attending that public college to go to for any problem they have. It is a safe place for them to go and seek counseling, support, tell their stories, tell their needs, and then that veteran, who is an AmeriCorps member, can connect them in overcoming their problems. And I will give you one very, very serious example. I met one of the AmeriCorps members who said that a veteran enrolled in college, female, mother of several children, came to her and said I am abused and homeless but I am using my G.I. Bill to help get ahead, but I have got to find housing and I have got to get away, you know, and have a safe place. That AmeriCorps member connected her to the resources that she needed. Those are the kind of issues that we are working on. PENNSYLVANIA NATIONAL SERVICE MODELS Mr. Dent. That is good to hear that. I also just wanted to mention, too, that I am pleased with the G.I. Bill benefits. It is a portable benefit. A lot of family members of veterans are taking advantage of it, and that is a very good thing. But thank you for that comment. My final question deals with in your testimony you mention how national service investments, you know, helps the local communities, solutions, I guess, both in my district and across the Commonwealth of Pennsylvania where we are fortunate to have a number of very active volunteers and civil servants who make valuable contributions to our communities. Could you elaborate further on some of the programs that have been successfully implemented in Pennsylvania that may serve as a model for other States? Ms. Spencer. Well, I think one that was mentioned earlier is Power Corps. It is a great program, and this program takes mostly young people between the age of 18 and 28 who are having difficulties. They are out of school and not connected to jobs, and they need someone to give them a chance. And so what the program does is allow them to enroll as AmeriCorps members so they get the living stipend, the opportunity to go to college when they complete their term, but they get to learn skills. They get to learn about working in the environment. They get to learn trades while they are helping the community. That is a dual benefit because the individual is supported, and it may be the first time anyone has given them an opportunity. But the community has helped with local needs as well like transforming a brownfield into a park maybe. So I am real pleased with that. It is something that I hope we can replicate around the country, and I think there is great demand for that. PAY FOR SUCCESS Mr. Cole. If I could, I would like to return again to an aspect of the Social Innovation Fund. And if I am correct, I think the Corporation is one of just a handful of agencies that has made awards using the Pay for Success contracting model in which private investors support initiatives to, for example, prevent homelessness or support youth development, and the Federal Government provides payment to the investors only if they achieve agreed-upon outcomes. Could you please tell me more about what you have done specifically in this area, how you evaluate the model, and what you are looking forward to in the next fiscal year? Ms. Spencer. Great, thank you. This is again exciting, and we are glad to be one of the first Federal agencies diving in to the Pay for Success-type model. So the process, the way it works is our grants are helping organizations set up the model so that they can put together these Pay for Success models. And here is a great example of one that I have had a personal connection with. The Green and Healthy Homes Initiative in Baltimore, their goal is to go into these houses that are traps for asthma and other allergies. These houses have mold; they have other things that are harmful to children. And one example that I heard about recently was a mother and her son. The son has a case of asthma. They lived in a house with mold, and this was in Baltimore. That son, a child, went to the hospital six times in one year. He missed 14 days of school. She is a hardworking mother. She missed 14 days of work. So Green and Healthy Homes goes in and they do the full remediation work on that house and they get the mold out and they get the house healthy again. They spent $7,000 doing this. The cost to the community is $25,000 for the young boy to go to those medical visits and hospitals. So the idea is that the health care organizations, the hospital will repay--when they set this up, they will repay Green and Healthy Homes Initiative that $7,000 they invested in remediating that home, and it saved the hospital and the community $25,000. But they only get repaid if the work is done, completed, and worked. And how do they know it actually worked? Because the next year this young boy, after living in the healthy home, did not go to the hospital one time and he only missed one day at school and his mother only missed one day of work. It worked, but it was evaluated. So we are going to set up all kinds of programs like this where the nonprofit can prove that they can solve the problem but don't get paid until they do so and it is evaluated. So our work right now is setting up the models, and I am really excited to watch this over the coming years. I think this is something that we all ought to look at in government. Mr. Cole. Yes, it is a fascinating concept. Can you give me some idea of the scale you are talking about? I know you are testing this out and looking at things, so I am just curious about the size of the program that you mentioned. Ms. Spencer. We have eight grants right now, about $12,000,000 investing today in setting up these systems, so it is brand new to us but it is very exciting. Jobs is another one, you know, getting jobs for people. I mean, it is a hard thing to get a job for a chronically unemployed individual who has been unemployed for two decades or so. But that is the exact kind of problem this Pay for Success should look at. And so it is not a big part of our portfolio yet, but I think it is a good part, and I think we are going to learn a lot from it. Mr. Cole. I would ask you to keep the committee advised as you progress through this because it really is a pretty--this is an area where it is very difficult to measure success, and it appears to me at least in some ways you have and, you know, very tangibly, and that is just helpful to know. Ms. Spencer. Thank you. We will do so. RESILIENCE AMERICORPS AND DISASTER RESPONSE Mr. Cole. OK. One quick question and then we will move on. You know, I have seen what you guys are capable of doing after a disaster in my own hometown where AmeriCorps deployed and put people on the ground. It was a tremendous help to us after the tornadoes in 2013. But your request also includes a new program called Resilience AmeriCorps that is intended to help communities respond, you know, to extreme weather and other disasters. Define for me the difference a little bit. And I am assuming this is sort of a preemptive effort to prepare places, but just give me a little background on this if you would. Ms. Spencer. It certainly is. And I was leading volunteer and donations management under three Governors in Florida and one under the horrific storms of 2004 and '05. As we traveled the State, I saw so many ways that we could have done a better job in preparing the most vulnerable citizens. So this program Resilience AmeriCorps is about better preparedness and plans for cities. It is a wonderful public-private partnership, so we are partnering with the Rockefeller Foundation, who is investing nearly $2,000,000. Cities of Service across the Nation, 10 cities to start with, 20 AmeriCorps VISTAs, we are going to go to 15 cities soon, and these two AmeriCorps VISTAs in each of these cities will work with the mayor and his or her key team to put together a strong resilience plan with local nonprofits, business leaders, other organizations around a holistic plan in whatever their community is vulnerable of. Some communities are more vulnerable in certain perils, more vulnerable for floods, more vulnerable for tornadoes or hurricanes. Whatever is unique to that community, that is what they are going to focus on, so it is going to be a very individual case. I think this is going to be a national model that we are going to want to scale, and I think mayors and county officials are going to be calling us and saying when can I get my AmeriCorps VISTAs to come in? Mayors tell me something all the time. They say, Wendy, I want to end veteran homelessness or have a resilience plan or make sure that every third-grader is on reading level in my community, but I don't have anyone else that I can commit to on my team to see this through. That is where AmeriCorps members can step in in a mission-driven way, take over, lead the effort, be the instigator, coordinate the working groups. And they are doing it in a mission-driven way, getting experience and passion for it. So you know what I ask AmeriCorps members? I say what is your biggest obstacle in your service? And you would think they would say the living stipend is not enough, the hours are too long. You know the one thing they say to me? I don't have enough time to meet all of my objectives. I wish there were more time. Because they approach their service in a 10-month window or a 12-month window like I have got to meet these objectives in this amount of time. And that is what I like about Resilience AmeriCorps. They are going to come up with great plans for these communities. So we are looking forward to it, and I will keep you apprised of its progress. Mr. Cole. Thank you. I used Mr. Fattah's trick, so you might want to try it as well. I recognize the gentlelady from Connecticut. FLINT WATER EMERGENCY Ms. DeLauro. Thank you, Mr. Chairman. And let me play off of your comments, and this has to do specifically with Flint, about which I shudder when I think of 9,000 children who have lead poisoning, which is irreversible. But your Pay for Success program and your Resilience AmeriCorps--and I want to get a sense of what--you know, we talked a little bit about what your folks were doing there now, but one of the great problems in Flint is looking at--two things. In your Resilience AmeriCorps, what I have found out about Flint is that the city itself and the mayor, she has no staff. There is nobody home. So she is trying to deal with this unbelievable crisis with an infrastructure that is nonexistent in terms of personnel, so forth. And the other issue is engaging nonprofits and others to be able to work with these families and these homes and these children about what their future is about. Does this make sense to you in terms of what your mission is and where you can provide help in both of these areas? And I don't know the extent to which there have been conversations about any of this with, you know, the folks in Flint. Ms. Spencer. Well, we are working very closely with Flint. In fact, I met the mayor recently. She was attending a meeting here in Washington, and we almost shed a tear together over this because it is a horrific problem, and I can't imagine what they are going through. But there are so many ways that we can help and are helping and working on a task force, working very closely with the United Way of Genesee County there, who is taking a great lead. We sent in immediately, as you mentioned earlier, a team of AmeriCorps NCCC members. Now, these are the 18- to 24-year-olds that can work circles around any of us, and I was delighted to see a local television reporter about 2 weeks ago shadow the team members for an afternoon and go door-to-door as they were delivering water and filters and information about their health and what they needed to do. So we are getting supplies delivered to people, we are recruiting volunteers, we are managing volunteers. We have another about 30 AmeriCorps members who are either serving in schools or other areas who are being cross trained so that they can be a part of the education component. I am also looking at putting an AmeriCorps member in every school who is a nutritionist because we can---- Ms. DeLauro. The two areas---- Ms. Spencer [continuing]. Overcome this with---- Ms. DeLauro [continuing]. Are nutrition---- Ms. Spencer. Yes. Ms. DeLauro [continuing]. Education. Ms. Spencer. Yes. Ms. DeLauro. And that is where--and I am going to work like hell to be able to get the Department of Agriculture to be able to take these kids and get them WIC help from age 5 to 10 instead of just---- Ms. Spencer. Right. Ms. DeLauro [continuing]. Up to age 5. But those are the areas, nutrition and education, where we can bring some---- Ms. Spencer. We can put a trained AmeriCorps member from one of our programs like FoodCorps and others, nutritionists literally in every school there teaching the children, their parents, the faculty, the community leaders. That is going to help mitigate some of this. And this is a long problem, but we have got to make a surge and we have got to do it now. And we are prepared to help. Ms. DeLauro. OK. I really do want to talk to you before I go to Flint on Friday with the direction that you would like to go in, what we can---- Ms. Spencer. Thank you. Ms. DeLauro [continuing]. Talk about, what is there, et cetera, because we need to move on these things. Ms. Spencer. Thank you. OPIOID CRISIS Ms. DeLauro. These kids are already suffering. Now, I don't have to tell you about an opioid problem that we have, so let me get right to it. And I know you have people in correctional facilities, you have people everywhere. Do you have a strategy about leveraging your program in terms of that opioid crisis? And are your folks getting trained on abuse, et cetera? Ms. Spencer. It is a crisis, and every time I meet with a Member of Congress, a Mayor, a Governor, it seems like now they are bringing it up. And that is a unique, different trend. And I think we have all got to focus on it. And this is an all- hands-on-deck. There is not one sector that should not be involved in this. Let me give you one example that I think is a shining example, and it is in one of the toughest areas in the country, and it is in eastern rural Kentucky. Ms. DeLauro. Yes. Ms. Spencer. It is actually in Chairman Hal Rogers' district. Ms. DeLauro. Right. Ms. Spencer. He had the vision several years ago to start an organization called Operation UNITE to focus on this problem. And what we did early on is co-invest with his nonprofit, and we have 44 full-time AmeriCorps members serving each year in Operation UNITE to focus on two things: anti-drug activities at the earliest ages in elementary school and also focus on education because a smarter child and someone who is interested in education and focused on that is not going to be focused on things like drugs and things that get them in trouble. So we focused on math, and they are tutoring thousands. The math scores, I am pleased, on our evaluation have increased by 34 percent since we have been working on them, and that is up actually a point over last year, so we measure it every year. But the number of children that are joining these anti-drug clubs, I have gone with the chairman to tour these schools, I have seen rallies. These things work because it gets it into the young people's minds early that you must be focused on something positive and that drugs are bad for you. You have to have a strong drumbeat all the time. This can't be occasional, it can't be--you know, it has got to be a part of the school's culture, the community's culture. And these AmeriCorps members who are from eastern rural Kentucky--and I have met many of them who lost family members and friends to drugs who died from them, and they are very passionate about it. So Chairman Rogers has asked me to come talk about this at his annual conference in March, his prescription drug conference. And I am going to head up the panel, and we are going to talk about how service can provide a solution. And it is about intervention. Ms. DeLauro. Right. Ms. Spencer. We have got a lot of areas we need to work on, but we have got to work on intervention first and foremost, and that is something that AmeriCorps members, Senior Corps volunteers, and volunteers like you and me can do as well. Ms. DeLauro. Thank you. Thanks very much. Thanks, Mr. Chairman. Mr. Cole. We have all caught on to Mr. Fattah so it is---- [Laughter.] TRAINING AND TECHNICAL ASSISTANCE Mr. Cole. Ms. Spencer, in fiscal year 2016 omnibus we reinstated the authority of the Corporation to support training, including at the State and local levels, through set- asides in AmeriCorps. Would you describe what plans you have for the Corporation to use this authority in the coming fiscal year? Ms. Spencer. Well, training is so important for a lot of reasons. I mean, one is there are a lot of rules and regulations now, more requirements on Federal grantees than there were when we started 21 years ago, and we have to keep pace with that. There are a lot of reporting requirements. We have got to make sure that we are collecting the appropriate data so that we can make sure that our investments are in the right areas. We have got to make sure that it is working because if we invest Federal resources, match it at the local level, and it is not working at the scale that it should, that is okay. You need to know, you know, what areas you are best at. You can't be good at everything, but you should focus on things you are good at. So it is important that we are training our grantees, our intermediaries. We work very closely with 52 Governors' Commissions on service and Volunteerism. They are managing three-fourths of our AmeriCorps grants. So once that grant goes to them, we can't just trust that it is going to be managed well; we have got to partner with them to provide training for them. And I ran a Governor's Commission on Volunteerism in Florida, and I was a recipient of the funds from this agency, so I know how important it is to have the resources for training. So it is something that not everybody wants to fund, but if you don't do it smartly, you won't do it well. So that is why I am a big proponent of training funds. We are very smart in how we do it, very cost-effective, and I am very pleased with the direction. We are holding four regional training conferences throughout the country where we will have probably 2,000--the vast majority of our grantees who are running the largest programs and middle-sized programs will be attending this year. I will attend every one of those, and we will talk about the need for criminal history checks, on time every time, my new theme. We will talk about the reporting, we will talk about prohibited activities, we will talk about what it means to manage a Federal resource, the public tax dollars' resource and do so with efficacy. So I am passionate about it. I think we ought to continue with this, and I appreciate the investment that you have given us with this. EVALUATIONS Mr. Cole. Somewhat related, let me ask you, your budget asked for very little in the way of increases, but one area it did was $2,000,000 for evaluations. So that is a fairly substantial increase. I think it was 50 percent over what you have done in the past. So tell us how you intend to use those dollars. How much of it stays with your headquarters? Is any of it distributed out through the organization so some of the evaluations if you will are local if---- Ms. Spencer. It is a combination, and I would be happy to provide you and your staff with a detailed list, but one is going to be with the Social Innovation Fund as well. I mean we have got a lot of Federal dollars and also private dollars invested, and we have got to make sure, especially since this program is one of our newer ones, that it is working well. So certainly some of that is going to go into that area. It also allows us the opportunity to select some of our largest grantees and do a full-on random control trial, third- party evaluation like we did with the Minnesota Reading Corps. That is a large program. It is in 12 States, millions of dollars invested in that. I would like to do another evaluation like that. So that will be really co-investing with one of our large grantees, yet to be determined, but that is important, especially when you have an area like early childhood education that you want to learn from and you want to replicate and you want to scale it. So unless we do evaluations, we are not going to know full on if that is something we should replicate. So with the Social Innovation Fund, with our goal to select other large grantees, I think that combination is going to be a wise investment. Mr. Cole. Well, no question in my mind it is a worthwhile use of the money. Again, you know, one of the tougher things is being able to measure outcomes and produce evidence, quite frankly. It is tight times for budgets everywhere, and so any time you have got something that can show you something works or, frankly, saves you money by saying this is really a dead end for us, money spent figuring that out is still well worth it so you can redirect the resources instead of, you know, misdirecting them, quite frankly. Let me, with that, go back to my friend, the gentlelady from Connecticut. Ms. DeLauro. Thank you very much, Mr. Chairman. Let me ask a question about the Senior Corps in which you-- -- Ms. Spencer. Yes. SENIOR CORPS Ms. DeLauro [continuing]. Have talked about their work as Foster Grandparents, tutors, mentors, et cetera. And I just know that there are about 3,000 Senior Corps volunteers in Connecticut, so---- Ms. Spencer. That is right. Ms. DeLauro [continuing]. I am grateful for that effort. And, look, we have got more and more people retiring every day and baby boomers, et cetera, so it looks like there would be a large population of people who will knock at your door. The budget, though, for Senior Corps programs is lower than it was in 2010, and the budget request has been flat for the past several years. So this sounds like one of the best bargains for the Federal Government, Ms. Spencer. How much does it cost to support a Senior Corps volunteer? What kind of support do we need to provide in order to ensure that they are continuing to serve our communities? Ms. Spencer. Well, you may have hit on that there could be a very strong argument that the Senior Corps program may be the best value in the Federal Government. It is a wonderful opportunity. In addition to the health benefits of seniors volunteering--and, by the way, next month, I will be qualified to be a Senior Corps volunteer as I turn 55. So there is hope for me in my volunteer life in the future, and I am proud of that. The two ways we operate these programs, Foster Grandparents and Senior Companions, fairly similar. These two programs are actually means-tested programs, so these are for seniors. This particular program is in great need, living at the poverty level. They receive $2.65 an hour as a stipend to defray some of their costs for serving. On average, they serve in the Senior Companion program about 15 to 20 hours per week, and in the Foster Grandparent program closer to 30, 35 hours per week. Foster Grandparents are generally in schools. There are some exceptions to that like in juvenile detention centers. And Senior Companions are serving in homes doing one of two things: keeping other seniors living longer because they are there to help them with some of the basic needs and also providing respite care for family members who can't get out of their home unless they have some respite to do so during the week. While $2.65 doesn't sound like a lot, to someone who is elderly, doesn't have a lot of resources to depend on, doesn't have a good retirement but does have the physical ability and great nurturing ability to get into schools, it has something to offer, which all of our Foster Grandparents and our Senior Companions do. That $2.65 can mean a lot to them. It can help them with their basic medical needs, transportation, some basic things like food, their utility bills. So we are solving two problems here. We are providing caring and nurturing adults in schools, which the teachers are so grateful for, but we are also providing a benefit to the senior. Now, the other program is RSVP. That is not a means-tested program, but that has the largest participation--about 230,000 seniors are serving in RSVP. So think of it like a mini volunteer center, if you will, for seniors. And they show up and say ``I would like to serve in education'' or ``I would like to work in the environment'' or ``I would like to do tax returns for the poor.'' So we connect them with this. Those grants average about $75,000 to each organization-- the individuals don't get a stipend--to the organization, and the organization uses our funds to manage and coordinate volunteers, many of them, hundreds of them. So that is a really great bargain as well. SUMMER OPPORTUNITY AMERICORPS Ms. DeLauro. So we are getting great return on a very minimal investment in this program. Let me ask you about summer youth programs. You have got Summer Opportunity AmeriCorps, you are going to create up to 20,000 positions for low-income students, high school age in the next 3 years, help them build skills and earn money for college. Can you tell us a little bit about this program and how they are going to deal with low-income kids? Ms. Spencer. So our young people are really faced with a lot of tragedy in communities across the country today and obstacles that get in their way from being successful. But one of the ways that we have found to do an intervention is to get them engaged in something positive. Service can be the one thing that our young people--and this is targeted at high school students in the summer who have a lot of time on their hands and can get in trouble while their parents are working and they are left at home alone. But if we can coordinate activities and work with great organizations who work on summer learning loss, summer programs, Boys and Girls Clubs, YMCAs, these great programs that are proven that they can manage young people in something positive. We are going to set aside some college scholarship money as a carrot, if you will, so that they can use these funds, serve during the summer, get involved in all kinds of great activities, run and managed by these programs that do it so well, and then set aside a scholarship for them that they can look to and say, you know, I now am going to go to college because there is a fund with my name on it. I can't tell you how many young people I have met who have said I wasn't going to college until I earned my college scholarship from AmeriCorps and I said why not? It is sitting there waiting on me. I hope that same incentive will be there for these young high school students. Ms. DeLauro. Thank you, Mr. Chairman. Mr. Cole. Thank you. Mr. Harris, we haven't given you a lot of time, but we are prepared to go or I can take some questions if you are sort of getting your---- Mr. Harris. If you could, I would appreciate it. SELF-SUFFICIENCY OF GRANTEES Mr. Cole. OK. No, I would be more than happy to, and then we will go to you next. CNCS, you support an enormous number of services conducted by tens of thousands of organizations across the country, so you probably have more experience in dealing with different types of volunteer and civic groups literally than anybody else in the Federal Government. When you are making your decisions on grants, do you look at whether or not these particular organizations are self-sufficient, have the potential to become self-sufficient? Is there sort of best practices, if you will, that you can extend to these organizations so that, you know, over time they sort of stand up on their own? It doesn't mean we wouldn't continue as the Federal Government or your agency to have a relationship with them, but obviously, the more they can do for themselves, the more you can spread your services into other areas. Ms. Spencer. You know, that is a great question, thank you. And it is a bit of a blend, and I had a lot of experience with this working at the Governor's Commission on Volunteerism in Florida because you want to do two things. You want to find nonprofits who have new, innovative ideas that may not be tested yet but they want to tackle a problem in the community, and you also want to blend it with very experienced nonprofits who really know how to engage citizens in service. And I think it is important that we have a good blend. We also--it is important to look at vulnerable populations, Native Americans you know we are leaning in. We have invested the highest amount in our tribal communities this year, in the last 10 years. It may be the largest in our agency's history but we know in the last 10 years, there are great needs in our tribal communities. Over $5,400,000 we are investing now. Rural areas, our assessment about 42 percent of our grants are in rural areas. It is very important to support rural communities. This youth opportunity that we talked about, these young people who are out of school and out of work, seniors, and others. So we look at organizations who are tackling difficult problems, have a plan, have an ability to scale what works if they have been in the business for a while, but they also can demonstrate that they have strong local support. That is important to us. This is not, you know, just a public program. As, you know, I shared in my opening remarks, we have been able to now exceed our Federal funding for the first time ever with local support. And so now we can call it a private-public instead of a public-private partnership. And we look at that. What do you have at the local level that says that we believe in your cause so much so that we are going to invest locally? We are also using evidence. This is relatively new. We are looking at preliminary evidence or any evidence that they have a plan that actually works. But I also don't want to go too far. I always want to increase the opportunity for applications to bring us ideas that are untested. That is OK. We need to be a breeding ground for new ideas. But we also need to make sure that we are monitoring that very closely so that we make good decisions. So I think our application process, while solid, we are always looking at new ways to review it. But those things are important, local support, evidence it works, or a new idea that you want to test, and you are addressing the problem that really needs to be addressed in the highest and best use. PROMISE ZONE INITIATIVE Mr. Cole. Related to that, would you please describe the Corporation's role in the Promise Zone Initiative and how much funding is allocated this year? What are you expecting to be doing in 2017? Ms. Spencer. I love place-based initiatives because it is where we get to really work with the community leaders and focus very clearly on a problem. I will get you the exact number of the--not only the number of grants but the number of members or volunteers who are serving and also the amount of funding we are investing in that, and we will follow up with you. But this is an area that I feel like the administration has leaned in on, and I really appreciate the opportunity for the Federal Government to be able to actually shift. We need to be flexible. We need to be able to turn on a dime like Flint, which was mentioned. I mean, we had AmeriCorps members moving in before it was declared a disaster. We have got to respond quickly. We have got to try to make sure that our processes don't inhibit us from being able to turn in to problems that arise in local communities no matter what that is. So we have got a great--I personally did an announcement in Indianapolis with the Promise Zone there, great local community needs there. And we are able to be a very good coordinator. Sometimes, that is all it takes is--we have committed to providing AmeriCorps VISTAs--those are our capacity-builders-- to go in and be able to coordinate organizations in a community around the need. If they need to double-down with direct service like AmeriCorps and NCCC and send in teams of young people or do a grant application for an AmeriCorps program like I mentioned with Operation UNITE in eastern rural Kentucky, whatever the need is, working with the faith community, that may be a real important part of the fabric of the community that needs to be better engaged. We can coordinate that. So Promise Zones is an important area, and I think it is one way the Federal Government is showing flexibility. Mr. Cole. Thank you. Mr. Harris. GRANT MONITORING Mr. Harris. Thank you very much. And thank you. As I am sure the chairman said, we have multiple hearings so I am sorry. I was down the corridor at one. Let me just ask a couple questions. First, just a kind of administrative question because on--and I apologize if you covered it before, but on page 59 of the book, you go over the CNCS strategic goal operation measures, and curiously, you set a goal of, you know, a monitoring activity having to do with ``complete all grant monitoring activity as identified in the annual monitoring plan and follow up with grantees where necessary,'' where you would think that your goal would be 100 percent of doing that. You know, you started 89 percent in 2013 and then it actually went down to 85 percent for all the years with the goal of fiscal year 2016 to be 85 percent. Why wouldn't it be 100 percent your goal? I just have--you know, as we look at these grants, and they are widespread, and believe me, I have had a Habitat for Humanity, you know, singing your praises in my office the other day. I get it. But why would we want 100 percent accountability? Why are we happy with 85 percent accountability? Ms. Spencer. Well, thank you so much for the question. And I am not sure we would ever be happy with anything under 100 percent if we have the ability to do so. We have got about $740,000,000 invested in around 4,000 grants around the country, and 50,000 locations is where we have a presence where we have at least one AmeriCorps member, Senior Corps member, or one of our grants enrolled in a location. So I think it is a matter of balance and what we are capable of doing. And this is where we talked earlier about training and leaning on our intermediaries, our Governors' Commissions on Volunteerism, and some of our larger programs to help us. So monitoring is very important. We are constantly working on it. It is our checkpoint. It is how we find out if it is working. It is where we find problems if we need to address those. So I share your frustration that, you know, should we be at 100 percent? I think that would be great, but I know it is probably just a matter of balance. And we will continue. And as you have practices from your seat, observe in other Federal agencies or the private sector, please share this with me. I am always looking for practices to improve our monitoring processes. DRUG ABUSE PREVENTION Mr. Harris. And, OK, like I say, this is not my specialty but I would say that in the private sector I would be surprised if they didn't have controls that actually looked at 100 percent of their shareholder dollars being protected this way. And, you know, these are taxpayer dollars, so I would just say, you know, I wish your goal were 100 percent, you know, not 85 percent for fiscal year 2017. Let me just ask because one of the areas that you are supposed to be encouraging community service in is the health area. And I have looked through the book and I can't find examples. Maybe you know of some. The drug abuse and drug use is a huge problem, every community, every community. I go to a town hall meeting, I will tell you people don't talk about, you know, gee, it is the--because I see one of the things Baltimore is, you know, tree canopy, they don't want to know about tree canopies. They want to know about why did I have, you know, five people overdose in the local emergency room last week. So I want to know what you are projecting in fiscal year 2017 to address that specific issue about health because I think their role for volunteers and their role for new graduates and things. So what specifically are you doing in order to address that issue? Ms. Spencer. Thank you. And we did talk a little bit before you were able to come in about a great program that we have partnered with Chairman Hal Rogers on in eastern rural Kentucky that could be a fantastic model for the country. And I have been sharing that with Members of Congress who are very focused on this and Governors and mayors as well. And it is having full-time AmeriCorps members focused at early ages, in elementary schools, middle schools, anti-drug movements, drug rallies, Safe Sons for young people to talk about their observations and the positions they are in, where they are affected by drugs. And sadly, these children, unlike when I was raised, have actually seen family members and neighbors die. And it is tragic. And I do agree with you. I think this is an area for service. I think volunteers in the faith community can do more. We also have Community Health Corps. It is probably our largest organization. And I would love to provide details to you personally at a later time, but a little over 500 full-time AmeriCorps members, many of which are going to pursue the health sector as a career, but they are testing it through AmeriCorps. They are serving in community health clinics, they are learning about health needs, nutrition, and other things, and they are making a great impact as well. So I would love to meet with you and share that with you. Mr. Harris. Thank you. One just brief question if I might, Mr. Chairman. Do you have a zero tolerance policy for your volunteers with regards to drug use? Ms. Spencer. Yes, we do. Mr. Harris. Any kind of drug, including marijuana where it is legal---- Ms. Spencer. Yes, we do. Mr. Harris [continuing]. In the States? OK. Thank you very much. Mr. Cole. Next go to the gentlelady from Connecticut. SUPPORTING VETERANS AND MILITARY FAMILIES Ms. DeLauro. Thank you, Mr. Chairman. I want to just look at the veterans' area again if I might. Connecticut has a large population of veterans and active military personnel, and you support military families and veterans. And you talked about the number of those who have joined your effort, so I think it is a win-win. Now, you have a Veterans and Military Families Steering Committee, and I understand that was convened recently to look at more services that you all can provide. What were the recommendations of your steering committee? Do you have waiting lists for services? And just in terms of--I know you talked about the G.I. Bill and other areas in here--how can we in this area provide increased support and effort by both increasing the number of veterans who are engaged in the effort again and looking at the kinds of services that they might be able to provide? Ms. Spencer. Let me share with you two ideas we are working on, and I think we are very close to making this happen. It is on the front end and on the back end of military service. When someone leaves the military service, they are handed a great tool from their service to transition them out of service. What we are trying to do is get in the manual the opportunity for them to serve in AmeriCorps written down, I mean, in that book so they can see that joining AmeriCorps could be one of many opportunities. Many of our veterans have the ability to go right in and get a job in the private sector or the public sector. Many are going right into college, but some need a little more transition, and I say that from a point of talking to these veterans who have told me this. And what AmeriCorps does for them is it gives them that opportunity to transition gently to a sense of normalcy from the war zone to stateside while we get to take advantage of their great coordinating skills. They offer great skills to us and organizations. So it is a win-win. So if I can get that opportunity in the formal book, that is going to be one way. Another way is--and this is a little loosely connected, but think about what it takes for a young American to step into the recruiter's door of what has gone on in their mind they have said I am going to join the Army? Only to find out oftentimes that they cannot join because they are overweight, test scores, physical limitations. At that moment I want the recruiter to hand them an AmeriCorps brochure and say we are not a good fit for you, but you have great skills and assets. Would you consider joining AmeriCorps? And here is the pathway to do so. Because we don't have any restrictions. In fact, we encourage people with disabilities to serve with us, people with limited education. We want all Americans. So it is a little bit different, but you see where there is an opportunity there. Ms. DeLauro. Right. What are the veterans' organizations that you tap into? Ms. Spencer. Like American Legion Auxiliary---- Ms. DeLauro. Yes---- Ms. Spencer [continuing]. Is a great one, I mentioned the Washington Vet Corps. Ms. DeLauro. Right. Right. Right. Ms. Spencer. There is a veterans' program in Virginia. I mean, there are a lot of them around the country, and they are local. You know, these are local grants. Most of them are going through their Governor's State commission, and the commission is selecting them at the local level. And some are not national nonprofits. Some are local organizations that have decided to focus on veterans in the community. And a lot of them are in areas where you just happen to have large military bases so they have a higher population of veterans. Ms. DeLauro. Do you think that they know what a resource you are to their effort? Ms. Spencer. Not enough. Ms. DeLauro. OK. Yes, I am just trying to think of---- Ms. Spencer. No, not enough. Ms. DeLauro. Are even---- Ms. Spencer. We need more help in getting that word out. Ms. DeLauro. Or even when we are dealing with the issue of substance abuse and so forth. I would on that point just say that the specific areas that you function in, I think there needs to be a lot more understanding, marketing of where you are and what you are doing because I think that that helps us to avoid, you know, in years past, folks who wanted to eliminate these kinds of services and serious cutbacks in the mission that you have laid out. I don't believe there is enough of an understanding of, you know, the functions that you are providing. I think there are many folks, and I don't know if you share this view, Mr. Chairman, that are here who think, OK, well, this is a large sum but you can go off and stay on the public--you know, get, you know, a stipend and so forth, and why should we be doing that and not understand the gap that is being filled in this whole range of services, you know, that you provide. And we would love to talk to you more about that. And just let me say I was so honored to be able to receive the--and it is not in a self-serving way. I can't tell you how much it means to me---- Ms. Spencer. The Kennedy Lifetime Leadership Award. Ms. DeLauro. The Kennedy award, it really means so much to me personally, and I can't thank you enough for what you are doing or how we can expand what you are doing and tap into these resources, so thank you very much. Mr. Cole. Would the gentlelady yield for just a moment---- Ms. DeLauro. I would be happy to. Mr. Cole [continuing]. Just to respond to your remark? And this is something certainly Ms. Spencer ought to be aware of. You would be amazed at the number of very conservative Members that I have that come and visit with me about your programs and what they have seen in their districts. You know, you really would. And, you know, it is kind of like cut everything else in government but you have got to leave this, you know---- Ms. DeLauro. That is correct. Mr. Cole [continuing]. Particularly--what is it--is it Bright Lights, the education program you have in cities that--I had a number of Members who had seen that in action in their districts and felt like it just really made a dramatic difference. And you in particular would be shocked---- Ms. DeLauro. I would not--right. Mr. Cole [continuing]. At the names. [Laughter.] Ms. DeLauro. I would be happy to know that, Mr. Chair. Mr. Cole. I have a whole secret list of allies for you---- [Laughter.] Mr. Cole [continuing]. But I am afraid to put them in your hands. But, no---- Ms. DeLauro. Let's list them. Mr. Cole. These really are programs because I think---- Ms. DeLauro. Unbelievable. Mr. Cole [continuing]. People see them very directly in their communities in a way that they don't see other parts. Ms. Spencer. Yes. Mr. Cole. Look, you don't see the National Institutes of Health directly in your community, you know, in a way that you will see a group of kids immediately after a disaster or you are going just as a Member visiting in a local school district and here is this program and teachers and kids alike are bringing it up to you. So, no, your best advocates, frankly, are obviously your AmeriCorps members and then the people whom they serve. Ms. Spencer. Yes. Mr. Cole. I mean, you see it a lot so--anyway, I will yield back to my friend, the gentlelady. EMPLOYERS OF NATIONAL SERVICE Ms. DeLauro. I would just end with this. There is always a quote I use that comes from a woman who served in this institution who I have a great regard for, and that is Shirley Chisholm, the first African-American woman who served in this body. And she said, ``Public service is the rent you pay for space on this Earth.'' Thank you for the public service that you give and that you are inspiring young people to give as well. Thank you. Ms. Spencer. Thank you. Well, it is actually carried over now to America's employers, and they are taking notice. A year ago we announced Employers of National Service, and we asked employers all over the country to lean in and recruit AmeriCorps and Peace Corps alums, give them an opportunity. They have given to their community. Give them an opportunity. I am so pleased to report today that we have 339 employers from all over the country who represent 1,777,000 jobs. These are employers like Delta Airlines; Disney; Comcast NBC Universal; the States of Montana and Virginia; cities like Phoenix, city of New York, Philadelphia, Nashville; colleges like Arizona State University, of course nonprofits galore, and they are telling us we are not doing this to get on some list. We actually hope they apply. We value the fact that these AmeriCorps members have a mission-above-self, organization- above-self sort of DNA. They work with a team. They are the kind of people we want to bring in our organizations. And many of our workforce are an aging workforce, so they are looking to replace their aging out and their retiring employees. So I am so thrilled that America's employers are seeing the value of AmeriCorps and Peace Corps, which is our sister in service, does a great job. So, you know, it is getting noticed. And I am so glad to hear, Mr. Chairman, that your colleagues are talking about it. It tells us that our education work, to demonstrate, asking you to come out and see firsthand is working. So I am really thrilled with that, and we want to do more. Mr. Cole. Unless my friend from Connecticut has further questions, that, I think, is the perfect note to end this particular hearing on. Ms. Spencer, I want to thank you very much for being able to come and participate with us this year. We will try and promise it is not 16 years---- [Laughter.] Ms. Spencer. Thank you. Mr. Cole [continuing]. Until you come back. Then you will be a fully fledged member of Senior Corps. Ms. Spencer. That is right. Mr. Cole. And thanks for the great work that you and your colleagues do all across the country and the sheer number of ways that you have been able to, you know, bring out what is best in us as a people and sometimes institutionalize it and expand it. It is something you should be very, very proud of. And obviously, the people that work with you and preceded you have been doing this for a lot of years as well, so just thanks for your effort on behalf of the American people. Ms. Spencer. Thank you. This is a true honor to serve in this role, and it is an honor to support you and your goals in your districts. And we really appreciate the support from Congress. Thank you so much. Mr. Cole. Thank you. With that, we are adjourned. Wednesday, March 2, 2016. SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION WITNESS KANA ENOMOTO, ACTING ADMINISTRATOR, SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION OPENING STATEMENT Mr. Cole. Welcome. It is wonderful to have you here, and we will go ahead and open the hearing. Today, we are here to discuss the budget request from the Substance Abuse and Mental Health Services Administration, an agency in the Department of Health and Human Services. I want to thank Acting Administrator Kana Enomoto very much for having you here today, and I look forward to hearing your testimony. I will start by saying I very much appreciate the increases the administration put forward improving access to mental health services, targeting suicide prevention funding for the most at-risk groups, particularly tribal populations, and increasing vital substance abuse treatment and prevention programs. I think these are all areas we can agree need attention. But I share the concerns expressed last week at our hearing with Secretary Burwell that mandatory funding is not a realistic option. I must stay honestly within the jurisdiction of this committee and address these problems through available discretionary resources. I share the sentiment expressed by Chairman Rogers last week that we must find solutions to the opioid epidemic within the confines of the appropriations process. As many of you know, rising rates of opioid abuse and death are alarming. Drug overdose was the leading cause of injury-related death, and among those 25 to 65 years of age, drug overdose caused more deaths than motor vehicle crashes. So we are deeply committed to finding better approaches to stop the growing epidemic of heroin use and prescription drug abuse. Last year, we made several investments in this area, and I look forward to working with you to continue this work in the coming year. But I do want to stress--and I will be asking you questions--this whole question of mandatory funding is one that troubles me greatly because, frankly, we don't have the jurisdiction in this committee to do that. And my political judgment at this point is that that is unlikely to happen. But you know, there may be discussion going in this place that I know nothing about. That happens all the time. But, so if you are involved in some, I want to know about that. And if not, then we have got to figure out other ways to help you achieve the objectives you outline because, again, they are worthy goals. With that, I want to yield to my subcommittee ranking member, the gentlelady from Connecticut, Ms. DeLauro. Ms. DeLauro. Thank you very much, Mr. Chairman. Thank you for holding this hearing. And I want to welcome Ms. Enomoto. We look forward to talking with you today about, as the chairman pointed out, the critical programs that fall under the Substance Abuse and Mental Health Services Administration purview, as well as the budget proposal for next year. I want to start by saying a thank you to Chairman Cole because last year we were able to make important investments in the Labor, HHS bill altogether, including an increase of $160,000,000 for SAMHSA. We were able to secure a $50,000,000 increase to the mental health block grant, and a $38,000,000 increase to the substance abuse prevention and treatment block grant program for 2016. Many families without healthcare coverage or whose insurance will not cover mental health or recovery programs rely on the services that are funded by the grants. We were able to more than double the funding for medication-assisted treatment for prescription drug and opioid addiction through your targeted capacity expansion program. But I do have a worry that we are not going to be able to make these kinds of increases again without a stronger allocation. Last year's omnibus moved the Federal budget in the right direction. We raised the caps on defense and nondefense discretionary spending, and we increased what was much-needed funding for programs that support our economy and the quality of life of citizens across the country. The chairman has heard me say this before, but I am troubled that Labor, HHS, that our bill received only a fraction of its fair share of the $66,000,000,000 increase provided in last year's budget deal. While the other nondefense subcommittees received an average of 6.9 percent last year, Labor, HHS increased by only 3.4 percent. This subcommittee represents 32 percent of nondefense discretionary spending, and in my view, our allocation should be proportional to that figure. So I hope that we will see that realized this year. SAMHSA's programs aim to reduce the impact of substance abuse and mental illness on our communities through prevention, treatment, and support during recovery. The programs are more important now than ever. As the chairman alluded to, we face a public health crisis in opioid abuse. The rise in that abuse across the country is sounding off alarms that we need to pay attention to. We face an epidemic that requires a response from all levels of government. Every day over 100 Americans die from drug overdoses. It outnumbers the deaths from gunshot wounds or vehicle crashes. The rise in opioid abuse across the country is distressing. Of the over 47,000 drug overdose deaths in 2014, heroin was a factor in over 10,000 deaths. Opioids were involved in almost 21,000. Sadly, the deaths are likely undercounted. Thousands more people are addicted or in recovery. We also need to expand access to naloxone in our community. I have urged the Food and Drug Administration to reclassify naloxone from a prescription to an over-the-counter medication so that more will have access to this lifesaving drug. Supporting SAMHSA's work is essential to the well-being of our citizens. We can't afford to wait to act when addiction affects the lives of so many of our neighbors, our brothers, our sisters, our community members. We need to invest in programs that put Americans on the road to recovery, which brings me to the topic of today's hearing, the SAMHSA budget request for 2017. There is so much good in this budget proposal and I support those efforts. I especially want to highlight the proposed increases to the President's Now is the Time initiative, which began in the aftermath of the tragedy at Sandy Hook Elementary School, still so fresh in all of our minds. The budget request includes an increase of $7,000,000 for Project AWARE, which helps to identify high school kids with mental illness and refer them to treatment, and it includes a request of $10,000,000 for a new program to train peer professionals. On the substance abuse side, I was glad to see that the request included $460,000,000 for opioid use disorder treatment. Treatment of opioid abuse is critical. However, I am wary that all the funding comes on the mandatory side of the budget, which is unlikely to happen. Which is why I will be introducing a bill that would authorize an additional $1,000,000,000 in discretionary dollars per year toward substance abuse to support community clinics, and expand access to treatment for individuals with substance abuse disorders. Treatment seems to have the biggest shortages throughout the country. That is what I have heard from the folks all over the country. It is the responsibility of this committee to fund SAMHSA programs. We need to increase the subcommittee's allocation to support mental health, and to address the opioid epidemic in this country rather than rely on mandatory funding that will not materialize, which is why the subcommittee allocations that will be released in the next few weeks will be so important. I hope my colleagues on the other side of the aisle will join us in urging an increase for Labor, HHS in fiscal year 2017. And with that, I look forward to your testimony and to our discussion this morning. Thank you, Mr. Chairman. INTRODUCTION OF WITNESS Mr. Cole. I thank the gentlelady. And now, Ms. Enomoto, you are recognized for your testimony. OPENING STATEMENT Ms. Enomoto. Well, good morning, Chairman Cole. Good morning, Ranking Member DeLauro and members of the House Appropriations Committee. I would like to begin by thanking you. Thank you for inviting me here today. Thank you for shining the light on these important issues related to substance use disorders and mental illnesses in this country. And thank you for the tremendous support the committee showed to the Substance Abuse and Mental Health Services Administration in the Consolidated Appropriations Act of fiscal year 2016. You made important investments in the work that SAMHSA does--helping communities in crisis, confronting the epidemic of opioid overdose, expanding treatment for people with serious mental illnesses, and preventing suicide and substance use among our tribal youth. By doing so, you sent a clarion call to the Nation that behavioral health is, indeed, essential to overall health. We are honored by your faith in us to do this important work for the Nation, and we are committed to executing your charge with the utmost attention to financial integrity, operational efficiency, and programmatic outcomes. Working together, we will save lives and we will strengthen communities. This is what makes me enjoy coming to work every day. That is why in fiscal year 2017, we hope to build on the momentum you have provided. The President's budget outlines a $4,300,000,000 investment in SAMHSA. It is an increase of $590,000,000. It is also an increase to ensure that every State can implement the full array of science-based services that we know are needed to serve young people just emerging from the fog of a first episode of schizophrenia. It is an increase that will ensure that every person with an opioid addiction, whether that is heroin, prescription drugs, fentanyl, every person who seeks treatment will find an open door. It is an increase that will help that father, that daughter, that veteran, spouse, or friend to know that help is available and suicide is not the answer. SAMHSA'S FY17 PRIORITIES In fiscal year 2017, SAMHSA proposes to focus on four urgent public health priorities for the President, for the Secretary, and I believe for this committee--engaging individuals with serious mental illness into quality care, addressing the opioid crisis, preventing suicide, and maintaining the behavioral health safety net. We can gain traction on these issues. We have the science. We know how to do it, but we need to get the resources on the ground. The President's budget provides what we need to advance this critical work. SERIOUS MENTAL ILLNESS Thanks to expanded coverage provided by the Affordable Care Act and the Mental Health Parity and Addiction Equity Act, over 60 million Americans have access to increased behavioral health--increased access to behavioral health services. Unfortunately, less than half of children and adults with a diagnosable mental illness seek treatment, and for those who do seek treatment, even with the most serious conditions, the delay between first onset and help-seeking can be more than a year. That is unacceptably long. For conditions as serious and potentially disabling as bipolar disorder, major depression, PTSD, or schizophrenia, every day counts. So to address this gap, the budget proposes a new $500,000,000 2-year mandatory funding investment to improve access to mental health services and engage people into high-quality care as early as possible. For SAMHSA, this initiative includes $230,000,000 over 2 years for evidence-based early intervention services. As I mentioned, this would enable every State to establish one early intervention program. It builds on a body of work by the National Institute of Mental Health, including their RAISE--or their RAISE research initiative that found that coordinated special care delivered early in the course of an illness can decrease future episodes, the likelihood of future episodes of psychosis. It can reduce long-term disability, and it can help people get their lives back on track, which at that age is so incredibly important. It can bend the curve. So this 2-year program will supercharge the efforts already under way with the mental health block grant 10 percent set- aside for early SMI. To complement this effort, the budget proposes a new 10 percent set-aside within the Children's Mental Health Initiative to focus on youth and young adults at clinical high risk for developing psychosis. The potential value of this preventive intervention during the prodrome phase when we can actually have a chance to stave off a psychotic disorder is incredible. So SAMHSA proposes to test implementation of this promising approach in community practice settings to foster innovation and take advantage of emerging science to change and even save lives. Because we know already what can happen when we wait too long. ER visits by individuals in behavioral health crisis have been on the rise for over a decade. They often result in long waits and unnecessary inpatient care. And for too many people with mental illnesses and substance use disorders, they are being seen in ERs. They are being seen in homeless shelters. They are being seen in jail. These are not systems well equipped to meet their needs. So in fiscal year 2017, we also propose the Increasing Crisis Access Response Effort, or ICARE, program to help communities build and sustain integrated crisis response systems to prevent and mitigate, respond to, and ensure follow- up to behavioral health crises like we see so often in this country. To complement this effort, we are maintaining funding for the assisted outpatient treatment program that you appropriated to us for the first time in fiscal year 2016. This program will support communities to implement and evaluate assisted outpatient treatment and its impact on health and social outcomes, hospitalizations, criminal justice involvement, homelessness, and other important outcomes for people with SMI. To advance this program, SAMHSA is partnering with NIMH and ASPE to design and evaluate it. And yet each day, opioid overdoses are claiming the lives of Americans from every walk of life. Whether we live in Oklahoma City; Oakland, California; Oakridge, Tennessee; or Oglala Lakota County, America's obsession with opioid painkillers and illicit drugs poses a major public health crisis. ADDRESSING THE OPIOD CRISIS The fiscal year 2017 budget makes a bold commitment to face this challenge head on, a $1,000,000,000 2-year investment in new mandatory funding to build the addictions workforce and bolster the continuum of services--prevention, treatment, and recovery--to address the opioid crisis. Of the $1,000,000,000, $920,000,000 over 2 years will come to SAMHSA for State targeted response cooperative agreements to support community prevention, build the workforce, use telehealth for addiction treatment, and expand the availability of MAT, including needed psychosocial services and recovery supports. The initiative also includes $30,000,000 over 2 years for SAMHSA to evaluate the effectiveness of MAT programs under real-world conditions to help identify opportunities to improve treatment outcomes. In addition, on the discretionary side, SAMHSA proposes to double our MAT program, our MAT targeted prescription drug and opioid addiction grants from $25,000,000 to $50,000,000, and that would support 23 States, enabling us to reach a total of 46 States with these grants. And as we expand funding availability to pay for MAT, we have to ask ourselves who is going to provide these services? And that is why we are requesting $10,000,000 in funds for a buprenorphine prescribing authority demonstration to test the safety and effectiveness of expanding the pool of professionals who might prescribe buprenorphine to include advanced practice providers, such as advanced practice nurses and physician's assistants. In a parallel effort, SAMHSA is preparing to propose a new regulation to increase the highest patient limit for physicians who already have a waiver to prescribe buprenorphine. And these efforts will complement our ongoing SAMHSA activities, including courses for healthcare professionals on prescribing opioids for pain, enhancement of prescription drug monitoring programs, and expanding access to naloxone, disseminating our-- this is our opioid overdose prevention toolkit, which is, in fact, the most often downloaded item on SAMHSA.gov. PREVENTING SUICIDE Unfortunately, drug overdose is not our only problem. In 2014, nearly 43,000 Americans died by suicide. Five thousand five hundred of these deaths were among young people under the age of 24. Thankfully, SAMHSA had $57,000,000 to dedicate to preventing suicide in this vulnerable age group. By contrast, however, 37,000 deaths occurred among adults over 25. Currently, people ages 45 to 65 and those 85 and older are at highest risk for suicide, yet in fiscal year 2015 and fiscal year 2016, SAMHSA had only $2,000,000 to address adult suicide prevention, and this was an increase over 2014. So the 2017 budget proposes--gives us the opportunity to follow a true public health approach and allocate resources to focus interventions where we are losing the most lives. In the case of suicide, that means increasing our focus on middle age and older adults while maintaining our substantial investment in preventing youth suicide. It is important to note that in our $30,000,000 proposal for National Strategy for Suicide Prevention, we are including a tribal set-aside of $5,200,000, and we look forward to working with our colleagues at IHS on the implementation of National Strategy for Suicide Prevention in both SAMHSA and IHS. MAINTAINING THE BEHAVIOR HEALTH SAFETY NET Furthermore, the President's budget highlights SAMHSA's commitment to maintaining the behavioral health safety net by continuing to invest in the mental health and substance abuse block grants at $532,000,000 and $1,900,000,000, respectively. Since 2013, the mental health block grant has grown by $100,000,000, and the substance abuse block grant has grown by $150,000,000. We appreciate those increases, and they are important gains for us to maintain. As the entire healthcare system pivots to value-based purchasing and delivery system reform, we must maintain funding to ensure a smooth transition for people with mental illnesses and substance use disorders. The behavioral health safety net provides access to those evidence-based practices not covered by insurance that research has told us are essential to help people achieve and maintain meaningful recovery. At the same time, it is critical to note that the SABG prevention set-aside is the major funding of primary substance abuse prevention in this Nation. Finally, it wouldn't be a conversation about behavioral health if we didn't talk about workforce development. We must act swiftly to ensure that the behavioral health workforce is sufficient to meet growing demand. This expanded workforce includes prescribing and nonprescribing professionals--psychiatrists, psychologists, social workers, nurses, counselors, therapists, peers, youth, adults, and families. A skilled and diverse workforce is critical. Toward this end, we are requesting $10,000,000 to support peer professional workforce development, and in addition, we will work closely with our colleagues at HRSA and IHS as they implement complementary efforts to expand the number and grow the competency of the behavioral health workforce. We are grateful for the administration's and Congress' support in this crucial area as well. Members of the committee, thank you for your time. We know all too well that substance use disorders and mental illnesses come at a great cost to society. The impact of untreated or untreated behavioral health conditions on the labor market, criminal justice system, businesses, schools, and communities is tremendous, but above all, the impact is greatest on individuals and families. Thank you very much for your willingness to talk to me today about this, and I am happy to take any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] MANDATORY FUNDING PROPOSAL Mr. Cole. Well, thank you very much for your testimony, and thank you very much for you and your colleagues' professional efforts to deal with what we all agree is genuinely a national crisis. And I think, you know, the subcommittee showed again last year that it is very interested in trying to work with the administration on this. As you are aware, as I mentioned in my opening remarks, most of the initiatives you are proposing are not within our jurisdiction. Literally, I am mystified by this because there is considerable support for two proposals that the President and the administration generally put forward. The Cancer Moonshot, we were all out at NIH, or a number of us, earlier this week to discuss that. We want to find a way to work with the administration on that. This initiative, again, we would agree is a very important initiative. But we are simply not going to have the ability to do that. Do you know, are there any discussions under way between the administration or with the relevant committees of jurisdiction about the mandatory funding issue? Ms. Enomoto. Not that I am a part of, but I do know that the view on the mandatory funding is that it is fully offset by the President's budget and that we are hoping that this can be a down payment or a supercharge to some--some important efforts, some of which are already under way and some of which really need to get jump-started in order to make progress on the important health issues that we are talking about. FY17 DISCRETIONARY FUNDING INCREASE Mr. Cole. I am not aware of any either, and I will be in some meetings later today and this week where I will seek to see if that is happening. But in the absence of that, and you know, I think it is very unlikely that that is going to come to pass. I mean, I appreciate the optimism of the administration. But I just--I don't see it. And if I am wrong, so be it. So given that, you have really only asked us for a $60,000,000 increase on your discretionary line. Can you tell us how that $60,000,000 would be used and whether, in your view, that is enough to deal with the problem? Ms. Enomoto. Well, I think we would welcome a conversation about the balance between mandatory and discretionary, as well as the short-term and long-term goals, because I would agree that in order to achieve the goals that we have outlined for ourselves to make sure that everyone who is addicted to opioids who seeks treatment finds an open door. That will take a major infusion of funds. Mr. Cole. Well, we will keep waiting for that discussion to happen. Maybe you and I will actually be invited to it on some occasion, but the people that I know that are supposed to make those decisions haven't heard anything either at this point. FUNDING BEYOND MANDATORY PROPOSAL So let me ask you this because the other challenge that this committee would have--let us assume that this occurred, and we were able to do this for 2 years--we are going to have some sort of fiscal cliff then 2 years down the road. You won't be here, but unless the voters of Connecticut and Oklahoma change their mind, my ranking member and I may well still be here. So how would we fund those programs? I don't think you are--I am sure you are not suggesting that in 2 years we could take care of this if we spent $960,000,000 to take care of it. So those programs then would have to go on, and we have no assurance what our allocation would be, or that is the advantage of building something in the discretionary budget. Once it is in that budget, there is a very good chance that we may reshape it, we may change it, but that funding stream is going to continue and States can count on it. In my own State, if we were to do something like you suggest here, and we were fortunate enough to win some grants. They are in the middle of a budget crisis themselves right now. So I can promise you they can't pick it up and sustain it. So we would have set up a program that 2 years down the road, unless we found some other funding source for, would collapse, and how would you address that if you were sitting in our places? Ms. Enomoto. Well, I think the thought behind this is that what we are talking about in the State cooperative agreements is across the spectrum. So it is prevention, treatment, and recovery. So remember that we would be investing in your prevention system so that you would have fewer cases of opioid use disorder knocking on your doors in 2 years. You would be investing in the workforce so that after the money goes away, you will still have the people who have been trained, who have been certified, who have been given greater access or providing greater access to people who are seeking treatment. And you have invested in a telehealth infrastructure so that you can get--that those professionals who aren't available in rural and remote areas can actually reach folks without a 2-hour drive or a $50 bus fare to try to get to a service provider that is in a big city. So I think there are some investments available through these State grants that would actually carry on through the end of--or through into the next phase where things could be picked up by the block grants or could be picked up by third-party payers. Mr. Cole. Well, that is an excellent point. I have no doubt there would be some residual benefits and carryover, but I still think we would face a problem. But I can't enforce a 5-minute clock if I don't keep it myself. However, we have been joined by we affectionately call him ``the big chairman.'' Do you want me to give you time to-- -- OK. In that case, if we can, I will just move to my ranking member for whatever questions she cares to offer. [Pause.] Ms. DeLauro. Lovely. Thank you. Thank you very much, Mr. Chairman. And Mr. Big Chairman, thank you very much. Ms. Enomoto, last week, I participated in a series of events on drug treatment programs in Connecticut. I was with Michael Botticelli, Director of the National Drug Control Program at the White House, and talking about solutions to this devastating epidemic that we face. In addition to talking to medical experts and public health leaders about opioid addiction, I talked to families who have the firsthand knowledge of the heartbreak and the havoc that is caused by addiction, and I visited a methadone maintenance program at the New Haven Correctional Center. The message that emerged from these discussions and site visits was that there was a critical need for greater access to treatment, particularly medication-assisted treatment. Too many individuals don't seek treatment. They can't afford it. It is not available or because of the stigma attached to addiction. A recent study found that over 80 percent of individuals with opioid use disorders do not receive treatment, with little difference in the rate of treatment during the past decade. You would agree that that has to change. EXPANDING MEDICATION-ASSISTED TREATMENT AND HEALTH IT My questions to you on this effort are in the budget. Your budget has a significant new initiative, $1,100,000,000 over 2 years to address opioid use. How is SAMHSA proposing to expand access to medication-assisted treatment for millions of individuals who are trying to break their habit? And a second question is your proposal highlights, and you mentioned, telehealth and health IT systems as activities that would be eligible for funding. Can you talk about those activities, both telehealth and health IT, to opioid treatment strategies and your capacity to be able to do that? EXPANDING HEALTH IT Ms. Enomoto. Thank you very much, Ranking Member DeLauro. Your leadership in shedding light on this issue, your commitment to speaking with families, to visiting our providers, is so greatly appreciated because the scope and depth of the crisis is really measured in human terms. What we hope to do with our State capacity expansion grants or cooperative agreements would be to ask those States to focus on the communities that are hardest hit by the opioid crisis. So focus on where you have the biggest numbers and address the deaths from overdose and fallout by addressing prescribing practices. EXPANDING MEDICATION-ASSISTED TREATMENT Ms. DeLauro. What about the medication-assisted treatment, which seems to be a good road to follow? Ms. Enomoto. Yes. Ms. DeLauro. How are we expanding that? Ms. Enomoto. Well, we have a number of routes doing that right now. So we have our medication-assisted treatment prescription drug opioid addiction grants that are on the discretionary side. So, again, we went from $12,000,000, thanks to the committee went to $25,000,000 with an increase of $13,000,000, and now proposing an increase up to $50,000,000. So those are already grants targeted to States with the highest rates of opioid admissions, and we are working with States to implement any one of three FDA-approved medications, together with--when we say medication-assisted treatment, that means it is medication plus necessary psychosocial treatment and recovery support services because that is what the science tells us is most likely to get the best outcome. People with opioid use disorder who have had medication- assisted treatment are most likely to achieve longer-term recovery. So, absolutely, that is what we are doing in the discretionary grant. That is what we are doing by training providers. We are--under DATA 2000, SAMHSA operates the buprenorphine waiver program with the DEA, and so we have expanded our access--expanded our efforts to provide training to physicians who are interested in providing buprenorphine to their patients. For example, in Scott County, Indiana, we were involved in the response last summer to make sure that we could increase access in the immediate term to help stem the tide of the spread of HIV in that community. EXPANDING TELEHEALTH AND HEALTH IT Ms. DeLauro. Your telehealth and IT stuff, tell me quickly. My time is running out. Ms. Enomoto. So, so as I mentioned, we would want to make sure that providers who are in central areas or urban areas are able to reach those patients who are in either medically underserved or behavioral health underserved areas. They don't have access to a clinician who could prescribe buprenorphine, Vivitrol, or although for methadone, we will still need to---- Ms. DeLauro. Do you have the capacity to do that? Ms. Enomoto. Not right now. Ms. DeLauro. Not right now. Well, I have got 11 seconds. So I will finish up here. Let us go, 10, 9, 8. Okay. Thank you. Mr. Chairman, thank you. Yield back. Mr. Cole. Thank you. And thank you for adhering to the clock, and we will certainly have an opportunity to get back to you, I am sure. So if we can, we have been joined, as you know, by the chairman of the full committee, who has been a national leader in this area and has really, frankly, brought our attention on it and, I think, done a lot to make sure that we were able to do what we did do last year in this area. So, Mr. Chairman, I would call on you for whatever statement you would care to make and then, obviously, any questions you would care to put to our witness. Naturally, I will extend that same courtesy to our ranking member of the full committee when she arrives, if she can make it. So, Mr. Chairman? Chairman Rogers. Mr. Chairman, thank you for yielding. Thanks for the courtesy. Welcome, Madam Administrator, to your first hearing before the committee in this role. I will keep my remarks brief. I am pleased that the President's budget recognizes the scope of opioid abuse in America and prioritizes treatment for those suffering from addiction. We have heard it often. We even heard it today. We have more deaths from opioid abuse overdoses than car accidents and growing. It is getting worse every day. Of the 2.5 million Americans who need treatment for opioid use disorders, less than 1 million are receiving it. That is a serious problem, and we have got to do something about it. I am pleased that you will be discussing these and other issues at the National Prescription Drug Abuse and Heroin Summit in Atlanta the week after Easter. We look forward to hearing from you at that time down there. That has become, by the way, the premier organization in the country bringing together the whole gamut of aspects of opioid abuse--treatment, education, recovery, and law enforcement--all in one place. And it is an amazing--this is the fifth annual summit, and we thank you for coming. It is important to note that there is no one size fits all approach to treatment. We have got to foster a regimen which tailors and personalizes a patient's treatment to his or her individual needs, and certainly medication-assisted treatment are a piece of the puzzle. If provided under the care and supervision of a medical professional trained in addiction, MAT can help a patient turn his or her life around and move forward in a positive direction. This committee has repeatedly communicated to SAMHSA that there is a full spectrum of options that we ought to be considering for every patient who walks through the door looking for help, and doctors ought to be trained in all of them to decide what is best for that particular patient. Unfortunately, I am not sure that message has been received. If the chairman will indulge me, let me ask a few brief questions. UTILIZING NON-OPIOID MEDICATIONS Buprenorphine has been a useful tool for many doctors, but it seems that HHS and SAMHSA have held this drug up as a silver bullet, focusing on prescribing caps and access to it. However, there are also non-opioid medications available to treat patients struggling with addiction, and our committees encourage you to look at these products as another tool in the box. Are you making progress on looking in that toolbox? Ms. Enomoto. Absolutely. We recently issued a guidance on the use of long-acting injectable naltrexone and strongly believe that all patients, that this is a decision between patients and their clinician. And so all three options for medication-assisted treatment for opioid use disorder should be available. And we have actually received guidance previously. So we are doing a thorough review of our technical assistance materials regarding medication-assisted treatment and updating them to make sure that we are inclusive of all the FDA-approved medications, including antagonist and agonist therapies. And so we absolutely agree with you that there are multiple pathways to recovery and that antagonist therapies are often the right choice for people. ABSTINENCE-BASED TREATMENT Chairman Rogers. Medication-assisted therapies may not work for everyone. So what will you do to ensure that faith and community-based abstinence treatment programs have a space in the big picture as well? Ms. Enomoto. You know, since 2005, SAMHSA led in the space of recovery support services and the engagement of faith and community-based organizations in the provision of both clinical care and recovery support services. Through that program, we have served thousands of Americans and helped them achieve long-term recovery. Then we have since then rolled recovery support services into what is expected to be provided under the substance abuse prevention and treatment block grant, and we have also worked with the Centers for Medicare and Medicaid Services to better understand how recovery support services provided by traditional providers or faith-based or community providers can be supported by third-party payer. So we are looking for the inclusion because we have seen with our data that people can and do recover when they receive services that resonate with them in different ways, and particularly providers from a shared faith or other kind of community can reach people in ways that touch them very deeply. EXPANDING ACCESS TO TREATMENT IN RURAL AREAS Chairman Rogers. Cities have facilities that rural areas do not, and rural areas are really, really hurting because they just simply don't have the capability to deal with it. I have spoken on a number of occasions with Secretary Burwell about the importance of access to treatment, especially in rural communities. How would your budget proposal address the shortfall of residential facilities in rural parts of the country? Ms. Enomoto. Well, as I mentioned earlier, one of the aspects of the opioid proposal would include the use of technology, and I think that can be done in multiple ways. One way would be through traditional telehealth. So we can get providers who are located in cities who would be able to connect one-on-one with an individual who is located in a rural area. Another way is through a collaborative care model, such as Project ECHO, where we can get experts who are located at academic centers or advanced practice centers, provider organizations who can convene on a regular basis and provide training, support, supervision, and collaborative case management with providers who are located across the country. So sometimes there are providers who would be willing to see a person with a substance use disorder, simply don't have that specialty training or that expertise, but with the support of an expert who is available to them on a regular basis, they can actually manage that kind of complex care. And there is research to show that this works on all kinds of conditions from depression to hepatitis to cancer care, diabetes. And we also know that it can work for substance use disorders as well. Chairman Rogers. Well, thank you, Madam Administrator, for the hard work you are doing. We will see you in Atlanta. Mr. Cole. Thank you, Mr. Chairman. I am going to move to my good friend from California, Ms. Roybal-Allard, for 5 minutes. And then, if I may, I am going to ask my friend, the vice chair of the committee, to take the chair while I go to another hearing, and I will be back at some point. Thank you. [Pause.] UNDERAGE ALCOHOL CONSUMPTION Ms. Roybal-Allard. Acting Administrator Enomoto, I have a hearing conflict today. So I want to apologize in advance for having to leave right after this round of questions, and I will be submitting several others for the record. But I wanted to take a few minutes to talk with you about a bipartisan issue that I have been working on with Congresswoman DeLauro for over 15 years, and that is the issue of underage drinking in this country. Ten years after passage of the Sober Truth on Preventing Underage Drinking, it is clear that the STOP Act's comprehensive approach is making a difference. According to the 2015 Monitoring the Future survey, alcohol use by 8th, 10th, and 12th graders are at their lowest level in decades. SAMHSA has been a great partner in the fight against underage drinking by leading the ICCPUD, producing the annual report, and administering the community grants, and the progress we have made is very, very encouraging. But sadly, as you know, underage alcohol consumption in the United States remains a widespread and persistent public health and safety problem. And the most recent Monitoring the Future survey tells us that alcohol is still the number-one drug of choice among our youth. So I have been working very hard with Congressman Mike Fitzpatrick and Congresswoman Rosa DeLauro to reauthorize the STOP Act so its critical programs will continue into the next administration, and I am hoping that all my committee colleagues will join me in this effort. 2015 STOP ACT REPORT But in the meantime, I wanted to ask you about your plans for the fiscal year 2017 STOP Act programs. When do you expect to release the 2015 report on the STOP Act? Ms. Enomoto. So, Congresswoman Roybal-Allard, first let me start by saying thanking you for making the time to be here today and thank you for your and Congresswoman DeLauro's incredible leadership on the issue of underage drinking prevention. It has been--it has yielded real results for our country that is saving lives and creating safer families, safer communities for everybody. I want to make sure that I get you complete and accurate information about the fiscal year 2015 report. So I would have to get back to you with your staff. Ms. Roybal-Allard. Okay. I would appreciate that. Ms. Enomoto. Absolutely. Ms. Roybal-Allard. Because I think the reports have been very, very valuable. Ms. Enomoto. Absolutely. Happy to do that. UPCOMING ICCPUD MEETINGS Ms. Roybal-Allard. Also, will you convene the ICCPUD principals and stakeholders meeting one last time before this Congress and administration ends, and when will that take place? Ms. Enomoto. March 31. Ms. Roybal-Allard. March 31, that is great. And the reason I am happy to hear that, because those meetings have been extremely valuable in evaluating the conversation about underage drinking prevention and encouraging high-level strategizing and coordination of the best ideas and practices to achieve that goal. So that is very good news. FY18 STOP ACT GRANTS Evaluation of the STOP Act community grants have twice shown their success in lowering underage drinking rates in participating communities. In fiscal years 2015 and 2016, SAMHSA awarded 97 grant continuations, but your budget justification states that you will award 79 new STOP Act grants. Will you also be proposing new grants in fiscal year 2018 to help meet this backlog of community seeking STOP grants? Ms. Enomoto. I would--I think that depends on the grant- making cycle. So I am sorry I don't have the fiscal year 2018 data. I do know that we are planning to award 80 grants in fiscal year 2016. Happy to follow up and get you the 2017 and 2018 data. Ms. Roybal-Allard. OK. I appreciate that. And also do you know what the backlog was of all those that had applied for grants? How many were you not able to---- Ms. Enomoto. Oh, how many--how many were unfunded---- Ms. Roybal-Allard. Yes. Ms. Enomoto [continuing]. And fundable? I am sorry. I don't have that data, but happy to get that to you. Ms. Roybal-Allard. OK. My time up? No? OK. Mr. Womack [presiding]. You still have the better part of a minute left. Ms. Roybal-Allard. OK. Well, then I just want to close by saying it seems to me the STOP Act programs are a perfect example of a small Government investment yielding a huge return in behavior change and subsequent improved health, and communities who have STOP Act grants are showing significant improvement in underage drinking rates, and more and more communities each year are recognizing underage drinking prevention as a priority. So I thank the chairman and my colleagues for continuing to support and fund the STOP Act. Mr. Womack. Next we will move down to the other end of the dais, and the gentleman from Virginia is recognized. Mr. Rigell? Mr. Rigell. I thank the chairman. And thank you, Ms. Enomoto, for being here today, for your testimony. And let me first say that we share a common commitment to reducing substance abuse and improving mental health. With that said, I want to walk us through just a couple of things that concern me. And so if I think of Congress in some ways as playing a role of board of directors here, if we come at things from a I hope it is a constructively critical approach to these questions, the first is that I want to associate myself with the remarks of the chairman, Chairman Cole, when he talked about his objection to increasing the number of accounts that are placed in the mandatory side. I have found in my 5-plus years here that the institution, this institution, and then even collectively with the administration, we have been unable thus far to make any substantial progress on reforming the mandatory side. One could argue that we have made--it has been rough, but we have reduced the discretionary side. So just as an American concerned about our fiscal trajectory, I couldn't support that. Also I have always questioned the wisdom of the grant program generally, and I am not saying I am in opposition to all grants. But I fail to see the wisdom oftentimes of taking money from citizens in a State, sending it to DC, and then having other fellow Americans decide, you know, they will develop a program and then have fellow--their fellow citizens then again compete for that money. And to get the money, they have to shape their State's programs and bend it to the will of DC. ADMINISTERING GRANTS TO STATES So there are some things that are absolutely essential, can only be done at the Federal level. I get that. But what is the inherent wisdom and logic of when you meet men and women who have education equal to your own, are also subject matter experts in the States, and yet we believe that it is the wisest course is to bring the money up and then have to reallocate it? And indeed, some States don't get any of that money, or they don't get as much as others, and it is inherently inefficient if for no other reason every time you meet, every time you have a memo, every time you promulgate directors, it is not money going to help a mentally ill person. So help me with that philosophically, Okay? Ms. Enomoto. So at SAMHSA, less than 10 percent of our overall appropriation goes to administrative costs, such as salaries or rent or overhead, and 90 percent of our money does go back out to States and communities. And over half of that money goes directly to States through the block grants. So I agree with you that it is--it is the States and the communities who can best decide what is useful to them. At the same time, if you follow a public health model, it is not necessarily the wisest course of action to put an equal amount of money everywhere because the problems are not distributed equally. And so when we--just in a basic infectious disease model or even with a chronic disease model, you want to focus on where those diseases are striking the hardest or where you have an evidence-based practice that has the greatest opportunity to make traction to bring it down, to reduce risk, or to stop spread. And so, I think that is the value that the Federal programming does add, as well as I think the Appropriations Committee setting priorities for us. You identify problems that are key to this Nation, to the health of the Nation, to the health of families, to the health of the economy. And I think you allocate funding to us in ways--in places where you see the greatest need, and that is how we then turn it back to the community. Mr. Rigell. I thank you for your answer. I just would be careful. You know, I would just be cautious in terms of trying to tighten up how much more is put into those programs versus just let the States, you know, invest in the areas that they think directly, keep the taxes as low as they possibly can. There is just a natural sense. I think Mr. Jefferson, you know, talked about it, President Jefferson. But just this natural tendency for government to grow. It is just a natural tendency of the beast. SAMHSA'S HIGHEST EFFICIENCY PROGRAM But I have 25 seconds left. I am going to give you an easy one here. Of all the programs that you think need investment, among them, which is the one that shows the most promise in terms of efficiency per dollar? Ms. Enomoto. I think our proposal for expanding access to medication-assisted treatment is very efficient. We have-- again, we have the data. We have strong data that shows that if you provide these interventions, you can--you can help people achieve recovery. You can reduce the risk of overdose death, and you can increase public safety, reduce the risk of transmission of HIV. There is value in so many different places there. Mr. Rigell. Thank you. And I thank the chairman. Mr. Womack. Welcome to the hearing. It is great to see you. My question is going to be centered around targeted capacity expansion grants, and I appreciate your review of SAMHSA's plan for reversing the ongoing epidemic of opioid abuse. Our Nation has successfully faced other public health epidemics in the past, and with your partnership, we will hopefully put an end to this one as well. Excessive use of opioids has been identified by a number of Federal agencies. We all know that CDC has raised it, the CMS, Veterans Health Administration, and all are taking measures to prioritize non-opioid alternatives for pain management. These other Federal agencies are actively working to reduce the overprescribing of opioids because opioids are associated with overdose deaths, addiction, drug diversion, and the rising incidence of newborns requiring opioid withdrawal management, all very serious public health concerns. And I share Chairman Rogers' concern about that and commend him for his leadership down through the years. He has been a real leader on that front. Unlike other agency efforts to prioritize the use of non- opioid alternatives for the management of pain, SAMHSA seems to prioritize the use of opioids, especially buprenorphine, for the treatment of opioid addiction, even though there are non- opioid alternatives that are evidence-based and approved by the FDA. Under targeted capacity expansion, both the fiscal year 2016 House and fiscal year 2016 conference reports directed the Center for Substance Abuse Treatment to use medication-assisted treatments for two specific purposes--to achieve and maintain abstinence from all opioids and heroin and to prioritize treatment regimens that are less susceptible to diversion for illicit purposes. TARGETED CAPACITY EXPANSION GRANTS Specifically, two questions. And I will give you both questions, and then you can take the time necessary to answer. Specifically, how is SAMHSA planning to address these two conditions that were placed on targeted capacity expansion grants? And when will the RFA for these grants be released, and will it reflect the direction that Congress gave to SAMHSA in the appropriations bills? And I will yield to you for the answer. Ms. Enomoto. That is actually very easy. So the funding announcement is not yet out, but it will be out prior to March 15th is the expectation. And absolutely, we plan to reflect the directions that we received in the report language, that we will be prioritizing those medications that are less susceptible to diversion, and we will be encouraging our grantees or focusing our grantees on achieving those interventions which can lead to abstinence. So that is the easy part. We appreciate your investment, your time, your attention, and we listen well. So, and I guess I want to maybe just a point of clarification that in terms of non-opioid alternatives for the management of pain, SAMHSA actually has PCSS, so Physician Clinical Support System, that provides technical assistance to providers as they are considering prescribing opioids for pain management, as well as for the substance use disorder treatment. And that work absolutely includes alternatives, both alternative pain management strategies that are not opioid based, as well as alternative--or not even alternative, but the full spectrum of addiction treatment options--with medication, without medication, agonist, and antagonist. So I think we are trying to follow the science and trying to give the people of this country who have opioid use disorders access to the best treatment available, and that means for different people different pathways to recovery. Mr. Womack. Thank you. And I still had a minute left. So, no, I am going to yield to the gentlelady from--oh, I am sorry, the gentlelady from California since Ms. DeLauro has already gone once. So, Ms. Lee, the floor is yours. Ms. Lee. Well, thank you very much. I apologize for being late. I had another hearing, but I am really happy to see you here, and thank you for your testimony. I am, by profession, a clinical social worker. So I am really aware of how--the role that you play in terms of substance abuse and mental health services. I am pleased to see the increase in attention to drug addiction, but it is not a new one. Heroin has been around for a while. In the 1980s, when the crack epidemic ravaged African- American communities, addicts were, you know, thrown into jail, right, and cast off as moral failure thugs. And so as substance abuse has evolved, now we are faced with a new look at this drug addiction, especially through heroin addiction and opioids. And I hope that you had a chance to read this article, New York Times article, ``When Addiction Has a White Face.'' Because I don't want to see us make the same mistakes that we made in the past where we were, you know, ending up putting people--we have lost a whole generation of African Americans and Latinos because we did not put resources into rehabilitation. We put people addicted to drugs into jail, okay? REDUCTION IN CRIMINAL JUSTICE ACTIVITIES Now this budget in some ways is really troubling because there is a large cut to your criminal justice activities program that work to address the epidemic, the drug epidemic in communities of color. So how are you going to coordinate with the Department of Justice and other agencies to develop a comprehensive strategy to ensure that drug offenders are provided with treatment rather than being thrown in jail with this budget cut? I think you request a $16,100,000 cut to the criminal justice activities. Yet, you know, the increase for addressing heroin and opiate addiction has grown. And I don't want you to rob Peter to pay Paul because we need to be able to treat everyone and provide alternatives in terms of rehabilitation and not cut one and put--one account and put money in the other. Ms. Enomoto. Thank you very much for that question, and it is a very important topic to focus on. The good news about our criminal justice line and the reduction that we are taking there is that it will not--it will not entail the elimination or the reduction of any current grants. So we will be able to continue the portfolio that we have, the grants that we have, and I think we have a very robust program, a very robust partnership with the Department of Justice already. We work very closely with OJP, with OJJDP, BJA, and we are in lockstep with them as we look for alternatives to criminal justice and as we---- Ms. Lee. Well, how does this happen with the $16,100,000 cut in this budget? How are you going to keep doing--we need to do more in the criminal justice system's budget, not less. Ms. Enomoto. I appreciate that, and we--we recognize that we cannot--we cannot jail our way out of this problem. You are absolutely right. We have to find ways to get people into treatment. We hope that our continued criminal justice involvement--criminal justice portfolio will help to do that for many Americans. Ms. Lee. Well, we do, too. But there is a $16,100,000 cut in this proposed budget. Ms. Enomoto. Right. Ms. Lee. So I am trying to figure out how that is going to happen. Ms. Enomoto. Well, because of the cycle of some grants ending and the availability of funds in fiscal year 2017, we would be able to continue our current portfolio so no grants would be cut. I am not sure if we might still be able to do actually a small number of new grants still, but not as much as we--as we would have if we didn't have to take the cut. MINORITY AIDS PROGRAM Ms. Lee. OK. I hope this committee can look at that because, once again, you are looking to cut $6,700,000 from the minority AIDS program, OK? And systematically, across this budget, I see cuts that are going to impact communities of color, which have been disadvantaged and disproportionately hit by a lot of what we are trying to address now and provide some equity. And you are cutting all of these programs. And so how do you intend to address the minority AIDS program in a way that we are going to move towards seeing an AIDS-free generation? And when HIV and AIDS heavily impacts minority communities, and yet you are cutting $6,700,000 there. Ms. Enomoto. I think on the HIV, we are trying to keep a top-line number of HIV that is the same in MAI. But that it is a balancing between our substance abuse and our---- Ms. Lee. Huh? It is cut by $6,700,000. Ms. Enomoto. That doesn't plus up? Ms. Lee. Well, I thought the minority AIDS budget in this budget was cut. If not, I stand corrected, but I would like to verify that. Do you have that? Staff, could I ask you, is there a cut? Is that accurate? OK. So, so we believe that there in this budget is--I don't have it in front of me, but we think that there is a $6,700,000 cut to the SAMHSA's minority AIDS program. Ms. Enomoto. So, so if you look over on the mental health appropriation, so the minus 6.7 is offset by a plus 6.7 in the mental health appropriation. Ms. Lee. OK, but it is in the mental health? Ms. Enomoto. For minority AIDS because we know that both the mental health and the substance use problems are so important to people with or at risk for HIV that we are trying to have a balanced approach that lets us look at both mental health and substance abuse together for people with or at risk for HIV. Ms. Lee. OK. Well, thank you, Mr. Chairman. I would like to pursue that a little bit more. Mr. Womack. I thank the gentlelady. BEST PRACTICES IN CRIMINAL JUSTICE ACTIVITIES Back to me. You know, I appreciate what you said just a minute ago about we can't jail our way out of these problems. Just curious, is there some State, some agency, some group, some organization doing a better job in, say, within the criminal justice framework around our country that seems to probably have not broken the code, but at least established some best management practices and/or alternatives to the incarceration of people addicted? Is there--can you point to anybody around the country that we should be more like? Ms. Enomoto. You know, I had the opportunity to talk with the National Organization of Correctional Health Systems a few months ago, and I heard actually community after community, warden after warden coming up, talking about here is how the drug court in our community has reduced our census, and we are seeing more and more people returning to health, returning to their families and not adding to our rolls. And so I think there are a number of communities where you can see that and happy to put you in touch with them. I am sure there are some in your State or in your district. But we have also seen the criminal justice system, the correctional system, police, jails be engaged with the naloxone issue, doing amazing work to make sure that we have our first responders equipped to reduce--to reverse overdose when they come upon it, as well as educated to understand the nature of addiction as a disease and the benefits for the individual and for the community and for public safety to get that person into treatment rather than move in a rush to incarcerate. So I think there are a number of communities around the country that we could point to. Mr. Womack. So, but you mentioned specifically drug courts, and I agree. I think there are many effective drug courts going on, including my district, that are reasonable approaches and alternatives. Are there any other types of alternatives aside from drug courts within the community frameworks out there that you are beginning to see are paying some dividends on this front? Ms. Enomoto. Oh, yes. So in our--we have a strategic initiative on trauma and justice, and so in that initiative, we are looking at a sequential intercept model. So there are six different points in the potential engagement with the criminal justice system, criminal and juvenile justice system, that there are opportunities to intervene. So that includes things like crisis intervention training for police officers, includes things like reentry programs for people that are going back into the community. So I think all along the points in the continuum, there are promising practices and evidence-based practices that can bring down the burden of mental illnesses and substance use disorders in that population. BEHAVIORAL HEALTH IN SCHOOLS Mr. Womack. What about our schools? Ms. Enomoto. As it relates to, for example, is it expulsion the problem that---- Mr. Womack. The identification of problems, the--you know, I know there are some schools that probably would like to wish the problem away or pretend that the problem doesn't exist. Are we doing a better job in our schools identifying either those at risk or those obviously so afflicted? Ms. Enomoto. Oh, absolutely. And I think that is what you will see in our Now is the Time proposal, Project AWARE. That is exactly what you describe. It is a partnership. We worked very closely from the inception of the proposal to the execution of the program with the Department of Education, as well as OJJDP, to make sure that we are connecting school districts, schools, families, community-based organizations, law enforcement, as well as the behavioral health system, so that we are raising everyone's awareness. We are introducing evidence-based practices to change school climate, as well as to help people increase their mental health literacy and so that teachers can identify teachers and other staff and other students, and community members can identify those children who are most at risk for mental illness or might be showing signs of a mental illness. And then making sure that we are making those warm handoffs. So that instead of going to jail, instead of getting expelled, a child might get access to an assessment or to a counseling or to actual services if they actually have a disorder. ALTERNATIVES TO INCARCERATION Mr. Womack. All right. So here is a softball in my last 20 seconds. An individual, particularly a young individual, that has a substance abuse-type disorder, with proper treatment, we can make that individual, instead of an incarcerated person because of a lot of other crimes that are a manifestation of the underlying problem, but we can turn that individual into a productive citizen and give them the self-esteem back, reengage them with their families, and make it a victory, could we not? Ms. Enomoto. Absolutely. Some of my best friends and closest colleagues are people in long-term recovery, and I have the highest esteem and the highest ambition for what is possible for people. Mr. Womack. I thank the gentlelady. Ms. DeLauro. Ms. DeLauro. Thank you very much, Mr. Chairman. And just two comments on some of your comments. One, the last point is that, oftentimes, we take a look at this issue, particularly with young people, and that the answer is incarceration. The answer is not incarceration. The answer is treatment. And secondly, with regard to communities, I point to New Haven, Connecticut. I was at the correctional center, as I said to you, and they are dispensing methadone. And there is a line of people there. They put their ID up there. They get the methadone. They take the orange juice afterward because it is so bitter tasting. I then had the chance to talk to those folks, and this is providing them with this medication-assisted treatment program, which you are putting your emphasis on, which is the direction in which to go in. What I have found, though, in my conversations with these folks is that, in fact, yes, they are ready to go out and they are ready to leave, and many of them do not have a job. Many of them don't have a home. So they wind up back on the street and without employment because they can't get employment because no one wants to hire them, and then we are back in the cycle again. So those are--that is the realities of what we are dealing with here. INCREASING ACCESS TO NALOXONE I have two questions. One is with the access to naloxone. Pharmacies are beginning to dispense it without an individual prescription. It greatly expands access to a lifesaving drug that reverses the effects of an opioid overdose. Access is increasing, but the price is increasing as well for naloxone. The omnibus, we provided SAMHSA with $12,000,000 to help high-need communities mitigate overdosing, including training and equipping first responders with naloxone. How will the rising cost of naloxone impact the amount of naloxone your grantees are able to purchase? What can we do to increase access to naloxone? Should the program be expanded to other communities? In addition to first responders, do community-based organizations have affordable access to naloxone? Ms. Enomoto. So I would acknowledge that the pricing of prescription medications is sort of outside of our authorities. However, you are correct that as the price goes up, with a fixed amount of money, people can't buy as much. Ms. DeLauro. OK. Ms. Enomoto. We agree that it is important to increase access to naloxone, and while we defer to physicians and their patients in terms of what the individual decision is in terms of the prescribing of naloxone, in our opioid overdose toolkit, we talk about the practice of co-prescribing for those patients who are at greatest risk for overdose, that we want to make sure that naloxone, we know it works. But it doesn't work if you don't have it. And so we need to make--we are looking at opportunities to educate providers about the naloxone and its lifesaving value and to ask them to have those conversations with their patients to decide whether or not that is the right thing for them if they are getting prescriptions of opioids. Ms. DeLauro. Well, we ought to take a look at how we can make it more accessible and do that in a way, since we know what it does. And instead of looking at a whole bureaucracy, we ought to just figure out the best way to do it and what are the resources to be able to get to community organizations the training that is necessary, to pharmacists, et cetera, get them trained and get them to dispense it so that we can mitigate against this crisis. Overall with mental health, this is a very big issue for me. Surgeon General's report, mental illnesses in this country are more common than cancer, diabetes, or heart disease. It affects people of all ages, income, gender, ethnicity. ACCESS TO MENTAL HEALTH CARE Many of the most serious mental illnesses--bipolar, schizophrenia--occur in childhood and adolescence. One half of all chronic mental illness begins by age of 14. Three quarters by age 24. Suicide is the second-leading cause of death for ages 15 to 24 years old. Staggering statistics. And the statistics regarding treatment for mental illness are just as staggering. In 2013, almost 50 percent of children ages 8 to 15 with a mental illness received no mental health services. Rates are not much better for adults, with 40 percent receiving no treatment. This is cost effective if we deal with this in our society, and the barriers include cost, availability, and, yes, stigma. Let me ask you this. Do we have the systems and the capacity in place to care for a significantly larger number of children and young adults if we are successful in getting them referred for treatment? If not, what is it going to take us to build that capacity? Talk to us about the shortages of mental health providers. How large are those shortages? Are they increasing? Which professions are most effective? What other strategies are available for increasing the number of mental health professionals? Ms. Enomoto. That was a lot of questions. Ms. DeLauro. A lot of questions. [Laughter.] Mr. Womack. That is a lot of stuff. We are going to give you about 30 seconds. Ms. DeLauro. Mr. Chairman, I would hope with so few Members here that we can allow more than 30 seconds. I think the chairman would be happy to do that, and I request that of you, if I might? These are critical issues, and we don't have any other Members here. It is just the three of us. Mr. Womack. A reasonable time, but I was about to yield to Ms. Lee, and we are already 30 seconds into her time. So we will get there. Ms. DeLauro. I think Ms. Lee would bear with me. Thank you, Ms. Lee. Thank you. Ms. Enomoto. Thank you, Ranking Member DeLauro. I think you are again on point about the--the distressing lack of access for so many children and adults with mental illness to services, and the need to expand, the demand to expand we hope will be assisted by the Affordable Care Act and the Mental Health Parity and Addiction Equity Act. More people will have ways to pay for services. Twenty million people insured, thanks to the ACA. At the same time, there are barriers. There are barriers because people don't know where to go to care--get care. And people don't think they can afford care, and people are afraid of what other people might think of them if they--if they do receive care or they have a diagnosis. And I think all of those, the negative attitudes, finding out--helping make care more affordable, helping make sure that care works for everybody, and helping all Americans understand that taking care of your mental health, treating an addiction is no different from treating any other chronic condition or medical illness. Do we have the workforce to do it now, to treat everybody who needs it? No. I mean, we are fairly busy as we are, and we are only seeing half of the people with a mental illness, 1 out of 10, maybe 2 out of 10 people with a substance use disorder. So were everyone to walk in the door tomorrow, we don't have enough providers. We don't have enough professionals. We don't have the infrastructure. That being said, we do have the science. We have the technology. We have the will. I think we have the ability to get there. But as I said earlier, we need to get the resources on the ground. Ms. DeLauro. It would appear to me that we don't have the resources to get us there. So thank you very much, Mr. Chairman. Mr. Womack. Ms. Lee. MINORITY AIDS PROGRAM Ms. Lee. Thank you, Mr. Chairman. That is the point. The budget of this subcommittee is woefully, way, way, way too low to meet the needs of your agency and to meet the needs of the American people. That is the point. Let me go back now to the cut in the Minority AIDS Initiative. It is being cut, the $6,700,000, from the substance abuse account. Now that doesn't make much sense to me because when you address HIV and AIDS, you have got to address, yes, the mental health needs of those living with the virus, but you have also got to address this in a comprehensive fashion, which means substance abuse. So you can't cut from the substance abuse account and put it into the mental health account, and then cut the criminal justice substance abuse program also. Because what you are doing is in many ways, you are vamping on minority communities with these cuts, with people who have issues around substance abuse. And so, for the life of me, I can't figure out why you would rob Peter to pay Paul because that is what it is doing. We need that $6,700,000 restored into this account, as well as the mental health services. Ms. Enomoto. Thank you, Congresswoman. I couldn't agree with you more that we need a comprehensive approach to help people who have HIV/AIDS. I just had the opportunity to participate in a PEPFAR visit in South Africa, where we saw people struggling mightily at the center of the epidemic there. And I will tell you that the population at great risk, the population of young women that we are focused on with PEPFAR is at risk not only because of substance abuse, but also because of mental illness. If we cannot help manage people and their substance use, if we cannot help--help people manage their substance use, if we cannot help people manage their depression, their PTSD, it is very hard for us to make sure that they get tested, they know their status, that they are on ART and that they are managing nondetectable--to a nondetectable viral load. And so that comprehensive approach is what we are trying to achieve. I am happy to work with you on a way that we can do that---- Ms. Lee. Yes. Ms. Enomoto [continuing]. That doesn't disadvantage those communities who are the most vulnerable. Ms. Lee. Yes, and so let us find the $6,700,000 somewhere else, Okay? SYRINGE SERVICES PROGRAM GUIDANCE Secondly, as it relates to the entire syringe exchange issue, I co-chair the HIV/AIDS Caucus with Congresswoman Ileana Ros-Lehtinen. It is a bipartisan caucus. And I am pleased that this budget provides a bit more flexibility on how Federal funds can be used to support syringe exchange programs, which are a critical, once again, continuum of substance use services and an important bridge to treatment. So how are your plans written to incorporate this flexibility across its grants and cooperative agreements, including the substance abuse prevention and treatment block grant? Ms. Enomoto. I think we are preparing to issue guidance to States with our colleagues at CDC in coordinated fashion to all the States that, once again, they are able to use their Federal funds for syringe exchange programs and happy to see that this strongly evidence-based public health intervention is once again available. Ms. Lee. Thanks very much because it is really remarkable progress. But the progress only began when this epidemic got out of hand. I believe it was in Indiana, and your Governor, the Governor was bold enough to say, you know, syringe exchange really can help mitigate against this terrible disease. So thank you very much. Thank you, Mr. Chairman. Mr. Cole. [Presiding] Thank you very much. And as you know, I just arrived back. So, Mr. Womack, have you had an opportunity to ask some questions? Mr. Womack. I have had a couple of opportunities, and I will take another one. Mr. Cole. Well, I will give you that opportunity while I get myself reoriented here. Thank you. TRANSLATING RESEARCH INTO EVIDENCE-BASED PRACTICES Mr. Womack. Absolutely. Ma'am, we often hear about the time lag between translating research into practice. It can take years for those suffering from a mental illness to receive treatment based on research evidence. What efforts is SAMHSA taking to ensure the evidence-based practices learned from research is reaching those who work most directly with individuals suffering from a mental illness? In addition, is there a feedback loop in place between researchers and practitioners where practitioners provide potential areas of research to SAMHSA, and SAMHSA puts those ideas forward for consideration? And then as you ponder the answer to that, let me reflect back on a trip that our chairman took us on this week to the National Institutes of Health, and one of the more impressive things I have seen in a while was a discussion about the use of ketamine as a treatment protocol for mental illness, suicide prevention, and a person who has been immensely helped by this trial. And so trying to figure out how long does it take for us to get from something that we now believe is beginning to work in a trial to actually effective use in a protocol that can be in place? In this particular case, Mr. Chairman, what struck me as odd was the fact that in this case, the individual had to go across country to get the treatment. The treatment or the vial for treatment was a very small--like a dollar, but yet the infusion, if you will, was thousands of dollars. So help me break this down and understand why we can't do something faster and more cost efficient when it concerns something as serious as that. Ms. Enomoto. Those are several great questions. Thank you very much. I agree with you that shortening the time from bench to bedside or research to practice is absolutely essential. That is why we are so excited about both the early serious mental illness set-aside as well as the prodrome proposal. So for early serious mental illness, FEP, you have a well- established intervention or a set of interventions that have already been tested by NIMH in community practice settings that we are ready to take to scale, and that is a very short time. These RAISE trials and the RAISE papers have only just come out in the last few years, and so that is a very quick turnaround, a very quick scaling up. On the prodrome side, the NAPLS study, the North American Prodrome Longitudinal Study, and NAPLS--NAPLS 1, NAPLS 2--those are still, we are just getting those findings. We are still at the preliminary stages of the findings, and yet we are already proposing this pilot program in our CMHI because the sea change that is possible with this kind of intervention. So it is early, but the potential to change the lives, to keep someone from actually getting a diagnosis of schizophrenia, what kind of impact could that have? It is incredible, the potential of that, it saves a life. It saves a family. And so we are proposing to make that investment, put that down payment into adopting, taking the chance to do something innovative. EVIDENCE-BASED PRACTICES The challenge that you rightfully point out is because we don't always do that. There are a number of interventions that are strongly evidence-based that we don't see used with widespread adoption, and there are some other innovations, which were not available to test readily. I think that is something that I would be happy to work with you on. But it is a challenge of the way this process works because on the one hand, you know, we get--we get encouraged to do things that are evidence-based or things that we have done before. And then we sometimes have challenges if, well, ``What is the evidence base behind this? What is the evidence base behind that?'' When we are really trying to do something that is new or that is emerging. And so it is that balance between practice-based evidence, you know, the provider saying this is what is working for us now. And not just providers, but also communities, tribal communities would say this is indigenous practice. We have 1,000 years of evidence. Or where a community of color that has done an adaptation of something that has been working for them. How do we help that make its way into the mainstream system? How do we wrap ourselves around that? So we have--we are really excited that at SAMHSA, we relaunched our National Registry for Evidence-Based Programs and Practices, and in that, we did two things that are relevant to your question. One thing is that we asked--we asked our stakeholders--we put it out for open comment and voting--what are the areas that we should be focused on? So give us that feedback. What is the feedback of what are the science-based interventions that you want to see on this registry? And if the public identifies things, we will go look at the research literature, and if it is there, we will start running it through so that we can examine whether or not these interventions should be on the registry. If it is not there, we can message that back to the institute, saying our providers, our consumers, our advocates, our family members, people in recovery are telling us that they want to see evidence-based interventions in this space, and we don't have it yet. At the same time, we built a learning center, and that gives us space for those model developers or those communities that say we have a promising model. We have got something that is innovative, and we would like to find out if there is someone who wants to evaluate it. Is there a researcher that we can get matched up with that is interested in testing this out and helping us take it to the next level? Because while there is a list as long as my arm of interventions that have a good evidence base that we need to get out more, it is not enough to do everything that we need to do because mental health and substance use disorders touch so many parts of our lives. Mr. Womack. Thank you. Mr. Cole. Thank you. I am going to take a quick point of personal privilege here. I have been informed by our ever- capable staff that it is my ranking member's birthday today. Ms. DeLauro. Yes. Mr. Cole. And you know, Steve and I could give you a stirring rendition of the Boehner birthday song, but we are on television, and we don't want to subject you to that, nor ourselves to the ridicule that comes. So happy birthday. Ms. DeLauro. Well, thank you very, very much. Thank you, Mr. Chairman. Thank you for that. Mr. Womack. Happy birthday, Rosa. Ms. DeLauro. Thank you very much. Mr. Womack. Good to have you. Ms. DeLauro. I am trying to forget some of them these days. [Laughter.] Mr. Cole. Well, you know, only you would be dedicated enough to be interested in talking about suicide and drug abuse on your birthday. I mean, it just tells you something about your devotion, and I mean that in all sincerity. You couldn't have a better person to work with. Let me, if I may, Madam Secretary, just ask a couple of quick questions in areas that I am very interested in your efforts to refocus SAMHSA on the most at-risk groups and some of the things you have been doing to identify those groups and refocus the agency. ZERO SUICIDE PROGRAM In particular, I would like to hear about your Zero Suicide program and your tribal set-aside. Ms. Enomoto. Thank you very much for that question. So the Zero Suicide program is one that has some very solid data behind it. We have seen that health systems have--many people who end up dying by suicide have been seen within the last month by a primary care provider. Many people who are admitted who receive a--or are admitted for a suicide attempt are the ones who actually complete suicide. And we have seen in a number of systems, like the Henry Ford Health System in Michigan, that they can by collecting the data of suicide attempts and suicide, death by suicide, by ensuring that there is follow-up to individuals who have been admitted, that there is immediate follow-up and a connection to community services, that there are evidence-based interventions. Evidence-based interventions not just for treating depression, but for actually addressing the suicidality. If we do I think it is about six different activities, we know we can reduce a suicide rate within a fixed system by 50 percent, 75 percent, 80 percent. These are real numbers that we have seen. We have seen them in White Mountain Apache Tribe, who have done an outstanding job of setting up a monitoring system and providing these interventions and training. Training providers, community members about the signs and symptoms of suicide and the ways to respond adequately and then making sure that those connections happen, and there are warm handoffs. And that there is follow-up, there is follow-up because people who end up--who complete suicide often have been touched very recently by our system. So that is what we are hoping to do with that. We will do a Zero Suicide that is focused in the health system, and then we are looking at ways to do comprehensive multi-sector community approaches as we know prevention, with so many things, it is you can't just prevent it once. Or you can't just do preventive intervention once. It has got to be over time and across systems, and that is what we hope to do. And we would like to work--we will work with IHS, who also has a Zero Suicide initiative. That will be focused in the IHS facilities, and I think we are going to use our funding working with IHS to figure out how do we wrap this around in whole tribal communities? TRIBAL SUICIDE PREVENTION Because, as you know better than I do, that this is such a tremendous problem not only among tribal youth. It is terrible and is tragic among tribal youth, but we recently had our SAMHSA Tribal Advisory Council, and they said we are seeing this in our youth, but we are also seeing it in our middle age and older adults. It is growing. It is a growing problem. And there is a will. I think people want to do this. We have our tribal behavioral health grants. Those do both suicide prevention and substance use prevention. They allow tribes--and we have a thank you for the expansion of that. We are up to $25,000,000 and 100 new grants this year to tribes. And we are really focusing on having community-defined outcomes so that the tribe says this is the outcome that is meaningful for us. This is the outcome that we commit to be accountable for, that we are going to deliver on to SAMHSA. Because so often, we hear from tribes is that you have these prescribed outcomes with data that we don't collect or systems that we don't have or outcomes like homelessness that don't really exist in our community because that is not how we are structured. And so you are measuring us on things that aren't meaningful. And we are committed to working with the tribes to identify those things that--because then you get into this negative cycle of holding them accountable for things that don't mean anything to me, and then taking away funding. And that is not what we want to do. At the same time, we take seriously our responsibility as responsible stewards of the Federal taxpayer dollar, and so you know, we are going to work with the tribes to say this is what you want to do, this is how you are telling us you are going to do it, and this is how we are going to be in agreement about the accountability for the use of these funds. But we want them to be able to find a sustainable and meaningful way to address the dual problems of suicide and substance use in the community. Mr. Cole. Well, I do want to commend you very much for the efforts in this regard. It is a unique population. And particularly reservation based, it is very different than any place else. And there is a lot of often, as you would know, I mean, some of these reservations are very bleak in terms of quality of life and facilities. At the same time, there is a connection between people that is also very unique, and there ought to be a way we can do a better job. But I really want to commend you and commend the administration through you for making a special effort here. With that, let me move to my good friend the ranking member. Ms. DeLauro. Thank you, Mr. Chairman. CHILDREN'S MENTAL HEALTH I would commend to you, and I know it is level funded, but it is something called the National Child Traumatic Stress Network. And it is level funded at $47,000,000. But this is a program that provides trauma services for over 48,000 kids and adolescents. It trains over 200,000 individuals. And I would just submit to you that I think that what we ought to do is to look at that program as an expansion with regard to the reservations. And specifically with regard to reservations, given the nature of the serious problems that exist there because of environment or certain circumstances. So after Sandy Hook and the Umpqua Community College tragedy, we started to take a look at what we might do in these areas to protect our kids. So I am heartened by the $15,000,000 funding for Now is the Time, for that initiative. And I am concerned, however, the program allows for, as you know, access to mental health services for children and young adults. I am concerned that the increase is being offset by eliminating the youth violence prevention program and cutting in half the budget for primary and behavioral healthcare integration. Your budget includes $10,000,000 for new peer professional workforce development, increasing the number of trained peers working with young people 16 to 25, particularly at community colleges. Tell us a little bit more about the program, how it complements your Healthy Transitions program, which is focused on 16- to 25-year-olds. And by cutting youth violence prevention and the primary behavioral health center healthcare integration, what are we losing since the need, in my view, I think you might agree, is still there. So---- [Pause.] Ms. Enomoto. Forgive me. I am trying to make sure I am getting that all down. It is a very rich question. Thank you. First of all, with the National Child Traumatic Stress Initiative and its potential value to tribes, we do have tribal grantees within the National Child Traumatic Stress Initiative. That network has been responsible for the development and promulgation of evidence-based practices for dealing with complex trauma in American Indian and Alaska Native youth. It is--it really is a national resource. The network is a national resource with incredible experts, incredible providers and provider groups that are really moving the field ahead not only for the United States, but for the world. And so I appreciate the contributions of the NCTSI across its diverse portfolio. With respect to our peer workforce proposal and how that dovetails with Healthy Transitions, it is, together with the Minority Fellowship Program and the Behavioral Health Workforce Education and Training program, those are all part of the Now is the Time workforce proposals, which we continue to believe strongly are added value to the Nation's behavioral health system. In addition to that, and I wanted to note I think to an earlier question about the different types of providers and where they are and what is valuable, we are partnering with the Health Resources and Services Administration on a behavioral health workforce research center so that we can do a better job, and I can get you better data on exactly the questions that you are asking me. But if you have to ask me, all the providers are good, and they are all necessary because we know that interdisciplinary, multidisciplinary treatment teams and recovery teams, prevention teams, that is what works. But, so we think that the peer workforce component is so critical. For one thing, work is recovery. I think it has been mentioned. People get out of jail. People get out of the hospital. If they don't have a purpose, then it is very hard to get galvanized for everything else that needs to happen. So that and the peer workforce is a complement to the professional workforce. It is not a replacement. It is not an either/or. But what we hope to do is to start building a career ladder by partnering with community colleges and States to get certified, a certified peer workforce established so that that can become a regular part of the behavioral health workforce to complement the clinical professionals that are trained in other professional schools. Ms. DeLauro. Youth violence? YOUTH VIOLENCE AND CHILDREN'S MENTAL HEALTH Ms. Enomoto. Youth violence, that is obviously a very sharp observation. The Safe Schools/Healthy Students program is what was funded out of the youth violence line for over a dozen years. In over a dozen years, we saw tremendous outcomes in terms of reduction of violence, school violence, perceptions of violence, increased referrals to mental health services, and reduced substance use among youth, and perceptions of safety, increased perceptions of safety for teachers and students. So the Safe Schools/Healthy Students model was fantastic. But in those dozen years, we never got a State that implemented the Safe Schools/Healthy Students model statewide, and so that is why we went to Project AWARE with the State. We had a pilot early on the youth violence line. We had a State educational agency grant, and then in Project AWARE, we really went to scale, where we are trying to scale up this intervention that we know works, this model. So I think actually the elimination of the youth violence line is an effort for us to be, again, those responsible stewards to reduce two lines that are sort of duplicative and doing so much of the same thing and that we are trying to consolidate those resources into one place because we think that that Project AWARE model, which came out of Now is the Time really is the next level of where Safe Schools/Healthy Students was. Ms. DeLauro. Thank you. Ms. Enomoto. And PBHCI, I just have to say the--we have enjoyed the success of that program for a number of years. We are seeing very positive outcomes in terms of improving both the health status and the behavioral health status of people with serious mental illness by bringing those primary care services--the screenings, the smoking cessation, the blood pressure checks--into the mental health center. And with this reduction, the very positive news is, is that we don't have to eliminate or reduce any grants to do that. And we will continue to make use of the great work of that program and our Center for Integrated Health Solutions. Ms. DeLauro. Thank you. Mr. Chairman, I am going to take my last couple questions and submit them for the record because at 11:45 a.m., I have to--I have to be someplace else. So I will--this is one on primary prevention. Mr. Cole. Well, we would hardly deny somebody on their birthday something that they requested. Ms. DeLauro. And the Medicaid screening of children and adolescents and what we are doing to work with CMS on that. But I will submit those. Ms. Enomoto. Happy birthday. Mr. Cole. I will actually follow your example. I have got a couple things that I wanted to ask and will follow up with you. But you have been very generous with your time, and we appreciate it very much. I am sorry. As you know, we have a lot of hearings going on, and Members are having to come and go and cover different things. But we appreciate all the excellent work. We really do. We appreciate the bold initiative because I think it is a genuine crisis. We want to find a way to help you if we possibly can, but we will have that talk about mandatory funding because I kind of doubt that is going to be the way. But anyway, it is something on a bipartisan basis I know we all feel strongly about. So thank you again, and thank your team for being here. The hearing is adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Tuesday, March 15, 2016. BUDGET HEARING--DEPARTMENT OF LABOR WITNESS HON. THOMAS E. PEREZ, SECRETARY, DEPARTMENT OF LABOR OPENING STATEMENT FROM REPRESENTATIVE COLE Mr. Cole. We will go ahead and call the session to open. Good morning, Mr. Secretary, and welcome. It is good to have you here, as always. I want to thank you for your service. And the committee recognizes the demanding role you have, and I appreciate your work on behalf of the American people. This hearing is to review the Department of Labor's fiscal year 2017 budget request. The department's request for $12,800,000,000 in discretionary appropriations is a 5 percent increase over the fiscal year 2016 enacted level. That is a substantial increase when compared to the increase authorized under the bipartisan budget deal for fiscal year 2017 agreed to last fall and signed by the President. As you know, that is essentially a flat funding top line for us. Although as I told you in the back, you know, we occasionally rob Peter's to pay Paul. And if you are lucky, you may be a Paul in all this. Increases are requested across the department, which makes the committee's task of prioritizing the programs that need additional funding from those that would be nice to have to even more difficult. In the budget, there are areas of agreement. The committee is pleased to see the Governor's Reserve proposed at the authorized level of 15 percent after several years of reduced allocations. I am also personally interested in the appropriately scaled Native American youth pilot proposal. I hope the department will continue to work with this committee to find ways to more effectively serve this population. The committee also appreciates the department's focus on serving the job training and employment needs of the Nation's veterans and particularly the department's requested increase for the Homeless Veterans' Reintegration Program. No veteran should have to live on the streets after serving our country, and we hope the department will continue to work with the committee and with Congress to eliminate veterans homelessness. Last, but certainly not least, the committee strongly supports the OSHA Voluntary Protection Program. We look forward to receiving the report requested in last year's House committee report and hope that the department will continue to work with us and with the Education and Workforce Committee to secure the resources necessary to expand the reach of and the participation in this program. MANDATORY BUDGET INCREASES Though there are numerous areas where we believe we can work with the department, the committee continues to have serious concerns with many of the proposals in this budget. The budget proposes $17,600,000,000 in new mandatory spending. These proposals exceed the entire discretionary budget for the department by over $5,000,000,000. Furthermore, Congress is unable to effectively assess these proposals because there is no proposed legislative language. Frankly, we wonder why these proposals are even before this committee, which does not have jurisdiction over mandatory funding. If they are anything more than a budgetary gimmick, they should go before the appropriate committees of jurisdiction. DEPARTMENTAL ENFORCEMENT PROGRAMS The committee also continues to have concerns with the department's overreliance on punitive labor enforcement. The budget requests a substantial increase for Wage and Hour Division, OSHA, MSHA, and other enforcement programs despite clear direction from the committee to adopt a more balanced approach that places more emphasis on cooperative compliance and assistance efforts. The committee recognizes that enforcement is an important part of worker safety programs. We continue to believe that worker safety should be the goal of these programs, not generating revenue from excessive penalties and fines. Many employers who want to do the right thing and protect their employees' safety are frustrated with the unforgiving and punitive approach the department has taken toward enforcement programs, especially the budget increases proposed to support politically motivated and controversial regulatory proposals. DEPARTMENTAL REGULATORY PROPOSALS The committee also remains deeply concerned by the recent trend of making major changes in policies through administrative interpretation. Those efforts circumvent the intent of Congress in the Administrative Procedures Act to interpret and implement the law of the land through the formal regulatory process. Despite clear bipartisan direction from Congress to implement such policy changes through the proper regulatory process, the department continues to issue controversial administrative interpretations to impose policies in an expeditious and disingenuous manner that circumvent the role of Congress in policy development and deprives employers and the public of their legal right to information and opportunity to comment on the record. In addition, the department continues to pursue controversial and partisan regulatory proposals on the definition of fiduciary, overtime, crystalline silica, injury and illness reporting, and reporting requirements for legal advice regarding unionization and continues to dismiss the concerns of many Members of Congress in both parties, as well as affected employers. We hope that the department will engage with the committee and the Congress to address these policy issues on a bipartisan basis. I know Members have many questions to ask, and this is a full morning of hearings in a compressed time schedule. So you will see Members, as I know you are aware, coming in and out, but we will certainly try to get as many of these questions in as we can. I want to yield now to Chairman Rogers for any opening statement that he would care to make. OPENING STATEMENT FROM REPRESENTATIVE ROGERS Chairman Rogers. Mr. Chairman, thank you very much for yielding me this time. As you say, we have got a lot of hearings going on. I have got to go to three different ones this morning. So I am going to say something and then have to leave to go to two more hearings. At the outset, Mr. Secretary, I want to thank you for your interest and your travel to my congressional district in recent months. As you are aware, over the last 7 years, eastern Kentucky has been hit hard with the loss of over 10,000 coal mining jobs and related jobs and, more recently, the temporary shuttering of the AK Steel plant in Ashland due to steel dumping by other countries. SOAR INITIATIVE As a result, we have worked at the local level to establish a bipartisan regional community development initiative, known as Shaping Our Appalachian Region, SOAR, designed to help diversify and grow the economy almost from anew. So thank you, Mr. Secretary, for speaking at the SOAR summit last year. Around 2,000 leaders from around the region listened to you as you highlighted the importance of education and job training. As you saw during your visit, SOAR is partnering with workforce development groups like the Eastern Kentucky Concentrated Employment Program to help create jobs and opportunities in what I like to call ``Silicon Holler.'' Important pieces of this initiative include innovation, workforce development, job creation. And I appreciate your continued support of those programs in the budget, as well as your continued interest in SOAR in Kentucky. DOL FY 2017 BUDGET REQUEST Turning to your budget request as a whole, regretfully, I must repeat a message I have conveyed at nearly every budget hearing we have had to date. As you know, last year Congress and the President reached an agreement setting discretionary budget caps for fiscal 2016 and 2017, and I am proud that the omnibus bill that we passed in 2016 adhered to the terms of that bipartisan agreement. Congress made the tough choices necessary to live within our means, and we will do it again for fiscal 2017. That said, I am very disappointed that the President has put forth a budget request in order to avoid the very same budget caps he signed into law last year. For fiscal 2017, Labor requested $12,790,000,000 in discretionary funding, a 5 percent increase over fiscal 2016 enacted levels. That number proposes increases for nearly every program at the department. This proposal is unrealistic, given current law under the bipartisan budget agreement. In particular, I am particularly extremely troubled by the department's proposal to create unauthorized new mandatory grant programs with no proposed legislative language or justification, as pointed out by the chairman. Your mandatory funding proposals include $3,000,000,000 for the American Talent Compact, $5,500,000,000 for the Open Doors for Youth program, and the list goes on. Combined, these mandatory proposals are larger than the entire Department of Labor's discretionary budget. Not only are these proposals functionally unworkable, but this committee, we don't have the jurisdiction over mandatory programs. DOL REGULATORY AGENDA Finally, the department's partisan regulatory agenda is also very disturbing. A final Department of Labor rule is anticipated soon relating to the definition of fiduciary. I, along with Speaker Ryan and a majority of Members of Congress, have repeatedly laid out the horrible impact this regulation will have on small businesses and individuals saving for retirement. Yet this agency has pushed full steam ahead with this regulation that will force financial advisers to stop working with individuals that have small retirement accounts. Along with the fiduciary rule, you are also working on rules on overtime requirements, minimum wage, and paid leave for Federal contractors. This agency is a prime example of rulemaking gone amok, and I hope that we can have a discussion about how to rein in these activities in the future. In the meantime, thank you for joining us today, Mr. Secretary. Look forward to hearing your testimony. And I have to leave shortly to attend two other hearings, but don't let that reflect on my willingness to work with you. Thank you. Mr. Cole. Thank you, Mr. Chairman. If I could now go to my working partner, the good lady from Connecticut, for any remarks she cares to offer. OPENING STATEMENT FROM REPRESENTATIVE DELAURO Ms. DeLauro. Thank you very much, Mr. Cole. And thank you, Secretary Perez, for joining us this morning and for your leadership on behalf of American workers and their families. The Department of Labor exists to represent the workers who form the backbone of our economy and are the engine of its growth. It helps provide them with stability by protecting their wages, working conditions, health benefits, and retirement security. The department also supports a nationwide workforce development system, which partners with private employers to train a skilled workforce for the high-growth, high-demand industries of the future. And our economy has seen significant gains in the past year. We have added 225,000 jobs per month, the unemployment rate is below 5 percent, and we are seeing improvement in the labor force participation rate. But too many working families today are still not being paid enough to make ends meet. So these broad economic gains do not manifest in the everyday lives of working people. Hourly earnings are barely increasing at the rate of inflation. A mere 13 percent of the workforce has paid family leave through their employers. And at least 39 percent of the workforce does not have access to paid sick days. And that is why the department's mission of fighting for working Americans has never been more important than it is now. Last year, we were able to make important investments in the Labor, HHS bill, including an increase of $86,000,000 for job training grants under the Workforce Innovation and Opportunity Grant and $90,000,000 for a new apprenticeship grants program. We were able to secure a much-needed boost of $17,000,000 for the Bureau of Labor Statistics. CUTS TO DOL BUDGET IN FY 2016 But I am disappointed that despite these gains, the 2016 enacted level was still $1,400,000,000 below the 2010 level, a cut of 10 percent. I am also disappointed at the overall increase of less than 2 percent for Labor in 2016, especially because this reflects a failure to provide additional funds for worker protection agencies. OSHA, MSHA, the Wage and Hour Division, and EBSA were flat funded, and the OFCCP was cut by $1,000,000. ILAB was cut $5,000,000. ILAB is one of the main tools that we have to root out and combat the causes of these inhuman labor practices worldwide. And as we consider new trade agreements with major implications for labor at home and abroad, we cannot slash funding to this crucial resource. I am also disappointed that we were unable to fund a modest request of $35,000,000 for State Paid Leave. Paid family and medical leave is an idea whose time has come. It is fair, it is humane, and it is popular. This is a national issue that has been raised by members of both parties. The discourse at the national level is about paid family leave. Families who work hard deserve our support to get through tough periods in their lives. Helping them keep their jobs and hanging onto their paychecks will boost our economy. There really is no reason not to enact paid family and medical leave. RECEIVING PROPORTIONAL 302(B) ALLOCATIONS Last year's omnibus moved the Federal budget in the right direction, raising the caps on defense and nondefense discretionary spending and increasing much-needed funding for programs that support our economy and the quality of life of citizens across the country. Chairman Cole has heard me say this before, but I am troubled that the Labor, HHS bill received only a fraction of its fair share of the $66,000,000,000 increase provided by last year's budget deal. While the other nondefense subcommittees received an average increase of 6.9 percent last year, the Labor, HHS bill increased by only 3.4 percent. This subcommittee represents 32 percent of nondefense discretionary spending. Our allocation should be proportional to that figure, and I hope to see that realized this year. FY 2017 PRESIDENT'S BUDGET That brings me to the topic of today's hearing, the budget request for the Labor Department. I might add with regard to an increased allocation by this committee, that would mean we would have to put less emphasis on mandatory spending if we had an appropriate allocation for what needs to get done through this committee. The budget request for the Labor Department. Mr. Secretary, there is a lot of good in the request, and particularly, I applaud $255,000,000 increase for job training programs, including increases for State grants under the Workforce Innovation and Opportunity Act, Job Corps, and Reintegration of Ex-Offender programs. I'm also pleased to see an increase of $12,000,000 to help homeless veterans return to the workforce. I want to note that last year Connecticut became the first State to end chronic homelessness among veterans, a significant achievement, and we can all agree that military veterans deserve to have a job waiting for them when they transition back to civilian life. I am pleased to see an increase of $15,000,000 for ILAB. In my view, ILAB should receive a much, much larger increase to carry out the essential work that they do, but this increase is a welcome proposal. But I am disappointed that there is no request for discretionary funding for State paid leave. I realize this is a heavy lift in this environment, but we need to keep fighting until working families do not have to forego pay or lose a job when serious medical or care giving needs arise. In order to do what we need to do to support programs that provide job training opportunities and enforce laws that protect low-wage workers, this subcommittee needs additional funds in fiscal year 2017. FINALIZING REGULATIONS Finally, let me urge the Department of Labor to finalize the regulations that you have been developing over the last few years, including the silica rule, fiduciary rule, and overtime regulations. Hard-working Americans deserve safe workplaces. They deserve to have their retirement funds protected from self-interested advisers, and they deserve fair pay for their work. This is precisely what the Department of Labor exists to do, to represent and to protect working Americans. I thank you, and I look forward to our discussion this morning Thank you, Mr. Chairman. Mr. Cole. I thank the gentlelady. And now, Mr. Secretary, we would recognize you for any opening remarks you would care to make to the committee. OPENING STATEMENT FROM SECRETARY PEREZ Secretary Perez. Thank you, Mr. Chairman. It is an honor to be here with you and Ranking Member DeLauro and all the members of this committee. I look forward to discussing our 2017 request for discretionary funding that is pending before this subcommittee. I am very grateful for the constructive dialogue that we have had throughout my tenure, and I have profound respect for your leadership and our ability to collaborate together. As we prepare for the final 10 months of this administration, I think it is worth reflecting on where we have been, where we are, and where we need to go. President Obama, as you know, inherited an economy in freefall. In the 3 months before he took office, the economy hemorrhaged roughly 2.3 million jobs. Seven years later, we have made tremendous progress, climbing out of the worst economic crisis in generations. We are now in the middle of the longest streak of private sector job growth on record, 6 straight years to the tune of 14.3 million new jobs. Unemployment is down from 10 percent to now 4.9 percent. Auto sales reached a record high last year. While we have considerable unfinished business, we have made undeniable progress, and I am proud to say that the Labor Department has played an important role in helping this recovery. Our work is critical to fortifying the basic pillars of the middle class--an education and training that allows you to move up the ladder of success in your job, healthcare that is affordable and accessible, a fair day's pay for a hard day's work, a roof over your head, a mortgage that won't go underwater, and the opportunity to save for a secure and dignified retirement. PLANS FOR THE FY 2017 BUDGET REQUEST These pillars took a beating during the great recession, but I have never felt more confident in the resilience of our economy, our workers, and our employers. I believe that our fiscal 2017 budget request will help us continue this important work to sustain this recovery while helping us to address the unfinished business of ensuring shared prosperity for everyone. For instance, despite a major decline in the number of long-term unemployed, there are still 2.2 million people who have been out of work for 27 weeks or more. To get them the help they need, we want to continue to strengthen the Reemployment Services and Eligibility Program, which has a proven return on investment. Our budget builds on the increased investments made by Congress last year, adding $70,900,000, for a total of $185,000,000. These dollars will expand services to all veterans receiving benefits through the unemployment compensation for ex-service members, as well as one-third of the unemployment insurance claimants most likely to exhaust their benefits and become long-term unemployed. I am also grateful for Congress' bipartisan support in passing WIOA a couple of years ago and providing the resources to make that promise of the law a new reality and a wonderful reality. Our fiscal 2017 budget builds on this foundation by bringing WIOA formula funding programs to their fully authorized amount while continuing the 15 percent Governor's set-aside for statewide activities that I made great use of when I was a State labor secretary, and which I strongly support. We are also proposing modest increases specifically to help dislocated coal industry workers and to pilot better ways to serve Native American youth who don't live on reservations, something I know has been a longstanding priority of yours, Mr. Chairman. Apprenticeship has been one of the cornerstones of our workforce development efforts. As I mentioned this morning, a recent independent study showed that for every Federal dollar invested in apprenticeship, that is a $27 return on investment. That is real money, and I applaud and appreciate the $90,000,000 investment that you made in the most recent budget. We are hoping to leverage that to literally upwards of a couple billion dollars in return. Apprenticeship is making a comeback in this country, and we had a $175,000,000 grant program that was through H-1B funds that has been wildly successful and is increasing the footprint of apprenticeship. The department's mission isn't simply to help people find good jobs, but to ensure that there are strong labor standards that give them the best possible quality of life, and that is why our enforcement offices play such a critical role. So, for instance, our Wage and Hour Division has been able to secure back wages totaling nearly $1,600,000,000 for 1.7 million workers. PERSUING AN ACTIVE REGULATORY AGENDA TO PROTECT WORKERS All told in fiscal year 2017, we are requesting $1,900,000,000 to continue to safeguard the health, safety, wages, working conditions, and retirement security of our workers. We continue to pursue an active regulatory agenda in this space in consultation with all stakeholders, including Members of Congress. In recent decades, the erosion of overtime standards, for instance, has undermined the economic stability of many white collar workers who I have met--some of whom I have met. They work 60, 70 hours a week while earning as little as $24,000 a year. So we have proposed a new rule that will expand overtime pay to millions of people potentially, and the value proposition is simple. People who work extra should be paid extra. This rule, the proposed final rule, was sent to OMB for final review yesterday. I believe it is a false choice to suggest that we can either have economic growth or workplace safety. We can and must have both, and that is why our Occupational Safety and Health Administration is close to issuing an updated rule that will significantly reduce workers' exposure to silica dust and save many lives each year. Given an aging population, the department's retirement mandate has never been more important. For the last several years, we have been working on a conflict of interest rule which we expect to finalize soon based on a common sense principle. If you want to give financial advice, you have to put your clients' best interests first. That conflicted advice costs families billions of dollars each year, and this is one of the most important steps we can take to enhance retirement security. CHALLENGES FOR THE REMAINING TERM I love my job, Mr. Chairman, and in this job, I make sure that I make house calls. In my house calls, I have seen both the remarkable progress we have made and the unfinished business. Last year, I met a guy named Bruce Ives, who was a Missouri man who was laid off from his client services job. He lost his home. He lost his dignity. At age 60, Bruce faced some remarkable challenges getting back to the workforce. But ``Match.com,'' which is what I often call the Department of Labor, stepped in. He was able to enroll in a State program called Reboot U, which helped him get computer programming skills that led to a job making $36 an hour as an IT analyst at the University of Kansas Hospital. It was a joy to meet him and to see the hop in his step and the dignity in his voice. I have seen so many inspiring stories like this, but I have also visited with all too many people whose boat has not been lifted yet by the rising tide and who are still on the outside looking in. Like the fast food worker in Detroit who was sleeping in her car with her three kids because she had been evicted from her apartment. Or the school bus driver I met in Connecticut--when I was with Congresswoman DeLauro--who had to take her newborn baby on her bus route because she doesn't have paid leave. Or a gentleman named Alan White, whom I met in Buffalo last week on a visit, whose life is in the process, frankly, of being cut short by silicosis. These challenges that they confront keep me up at night, and the opportunity to help them and create shared prosperity and an economy that works for everyone is what gets me out of bed in the morning each day with a hop in my step. I look forward in these remaining 311 days until the weekend to working every day to make every day count and to working together with you whenever possible, and I appreciate the bipartisan spirit that you have approached everything that you have done, Mr. Chairman, and I look forward to any questions that you and other members of the committee may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Cole. Well, thank you, Mr. Secretary. And just so the committee knows, we extended you a little extra time. We are not going to extend any of us any extra time. So we will---- Secretary Perez. You are very kind. Thank you, sir. Mr. Cole. No, no, that is fine. And we will adhere by the 5-minute rule. PROPOSED NEW MANDATORY PROGRAMS IN THE 2017 BUDGET I do want to go back to this issue of mandatory programs, as I told you, because it causes me great concern, and I have seen a pattern of this, if you will, across a number of departments that we have jurisdiction over on this committee. In your fiscal year 2017 budget, you provided minimal detail on proposed new mandatory programs, again totaling, as both the chairman and I pointed out, over $17,600,000,000. The committee notes that these proposals exceed the total discretionary funding for the entire Department of Labor for fiscal year 2016 by over $5,000,000,000. These proposals seem to rely exclusively on creating new grant programs that are neither tested nor authorized by the appropriate committees of jurisdiction. In fiscal years 2014 and 2015, the department went ahead without authorization or approval of appropriations with similar proposals to create the job-driven training and sector partnerships grant program using excess discretionary funds from the Dislocated Workers National Reserve, amounts intended to support the National Emergency Grant program, technical assistance for efforts such as WIOA implementation, capacity building, and true demonstration projects to test new strategies to improve effectiveness and efficiency of taxpayer investments the across the workforce. It is unclear from the budget what these proposals intend to achieve and how they would be implemented, and without proposed legislative language or appropriate justification in the department's budget, the committee must assume these proposals are sort of gimmicks, you know, in a budgetary sense. So can you tell me why are these mandatory proposals before this committee, where we have no jurisdiction, rather than the appropriate committees of jurisdiction, and do you plan to present them at some point to the appropriate committees of jurisdiction? Secretary Perez. Well, Mr. Chairman, many of the proposals would require authorization by the HELP Committee or Education and Workforce, but I don't think it is outside of the regular budget process to include legislative proposals in a budget. I know when I worked on the Senate during Republican administrations, we saw that as well during the budget. I will note that our discretionary budget stayed within the caps. It focuses on our programs that I think we have a lot of shared interest in, investing in skills, making sure we keep the 15 percent reserve authorized, making sure we redouble our investments on homeless veterans' reintegration, making sure we continue to do the work for Native American youth, remarkable work that has been done in ex-offender reentry, which is really, I think, a remarkably exciting bipartisan issue. Our investments in IT are part of our discretionary budget increase, and we had OMB come in and do a review of our IT system. There are two agencies that have invested less in IT than the Department of Labor, and we see it day in and day out. You know, duct tape is not a viable IT strategy, and all too frequently that is what we are at. So our discretionary budget seeks additional funding for that, as well as additional funding for enforcement. I talk to employers all the time who are trying to bid on contracts, and they can't because other employers are cheating, and they are not playing by the rules. So enforcement helps that. WORKING TOWARD AUTHORIZING NEW MANDATORY PROGRAMS Mr. Cole. Well, again, your discretionary proposals are largely within the caps, as you suggest, and there are many areas, as I have tried to point out in many opening statement, that we will be working with you. But again, you have got mandatory proposals that are beyond the budget of your entire department. None of them have been authorized. You know, are you going to submit legislation that would actually be authorized because we literally, if we wanted to do that, would not have the ability to give you that kind of authority. Secretary Perez. Well, I would welcome the opportunity to work with you. And let me give you an example. I mean, we are trying to take apprenticeship to scale, and we very much appreciate the $90,000,000 that we received. One of the mandatory proposals is to take apprenticeship to dramatic scale because we know apprenticeship works. I have traveled to multiple countries to steal their good ideas and bring them back home. We have developed remarkable opportunity here. But the reality right now of apprenticeship in America is some States are really moving forward and some States need help. So I would love to work with you on the mandatory budget proposal on that to take it to scale. Mr. Cole. Well, I have never had any problem on working with you on anything, quite frankly. You are a very willing partner. But again, you need to work with me. You need to work with Chairman Kline or somebody else because, literally, we don't have that authority here, and I have seen a pattern of this in administration proposals. And I mean, I am perplexed as to why we are setting up expectations for things, particularly in front of this committee, that we simply don't have the authority to do. So I would just say that as an early warning that I would expect some disappointment from this committee where mandatory spending is concerned because we can't do it, and we just don't have that authority. With that, I would like to move, if I could, to my good friend, the ranking member, for any questions she cares to ask. Ms. DeLauro. There was a campaign called ``lift the caps.'' ``Lift the allocation'' is where I am going with this effort. HOMELESS VETERANS' REINTEGRATION PROGRAM But, Mr. Secretary, I want to ask about the Homeless Veterans' Reintegration Program. I talked about Connecticut and what I believe is really a great accomplishment and ending chronic homelessness amongst our veterans, and we should be proud of that. And nationwide, homelessness, veteran homelessness has dropped by about 36 percent between 2010 and 2015, a great effort by Federal, State, and local officials. But if we want veterans to maintain stable housing in the long term, they need an income. That requires a job. Happy to see the $12,000,000 for homeless, the program Homeless Veterans' Reintegration Program. Can you discuss your plans for increased funds for homeless veterans for the program? What kind of progress have you seen in reducing homelessness in our veteran population? And let me throw in the follow-up question to this, which is the budget also requests a $71,000,000 increase for reemployment services---- Secretary Perez. Right. Ms. DeLauro [continuing]. For UI claimants, and a program that deals with wraparound services for veterans who have exhausted their unemployment benefits. And if you can just tell us about the UCX initiative, how it complements the work you are doing with homeless vets? Secretary Perez. Well, I have traveled the country on this issue because I have had the privilege, until about a couple months ago, for almost 2 years of chairing the Interagency Council on Homelessness. Together with the Secretary of Veterans Affairs and the Secretary of HUD, we traveled the country, shining a light on this. I want to thank all of you for your leadership. I was out in Phoenix--there is an annual count that is done, a point in time survey. I spent the morning out in the desert with a formerly homeless veteran who had a criminal record, who turned his life around, and has now literally helped hundreds of veterans get work as a result of your investments. So we see it, day in and day out, the work that we have done. We have seen cities like Salt Lake, New Orleans, and elsewhere, who have eliminated chronic veterans homelessness. We have seen States like Connecticut, who have made progress, and now we have this healthy competition that is going on where we go to one city and say, ``Hey, Salt Lake did it. Why can't you?'' Or, ``Hey, Connecticut did it. Why can't you?'' So we have a series of investments, including the Homeless Veterans' Reintegration Program. My wife works with homeless people here in the District, many of whom are veterans, and what they tell her repeatedly is, you know, ``I need a job, and that is one of my best ways to self-sufficiency.'' That is why those investments are great. I also want to give a shout-out to a former colleague of yours, Mike Michaud, who is our Assistant Secretary for Veterans' Employment and Training. Mike hit the ground running and has been going gangbusters. When you talk about homelessness, and we have a budget request of $286,000,000 for our Veterans' Employment and Training Program, all of that money is put to great use. OTHER COLLABORATION EFFORTS TO HELP UNEMPLOYED VETERANS You mentioned the reemployment money, that--one thing we know about REA, the reemployment assistance, it works. What we have been doing, if you look at our budget request, we are taking things we know that work and trying to scale them up. Apprenticeship, we know there is an ROI on that. We know there is an ROI on this reemployment assistance because what people who have been out of a job for a long time need is intensive case management, and that is what this program does. We can cover every veteran who needs it if we can get this budget request enacted, and I can tell you, having worked in partnership with Bob McDonald, Julian Castro, the DOL, DOD, and State and local governments. State and local governments have been so integral to this, and I want to commend as well employers. I have worked very closely with the U.S. Chamber of Commerce and with labor unions, the Helmets to Hardhats Program. This has been an ``all hands on deck'' enterprise, and it is Government as facilitator. Our investments are paying a real return. Ms. DeLauro. I would just say that I would think that given the scale of and the size of the issue with regard to homeless vets and some of the attendant problems, that an opportunity where we have seen success would be where we would want to place some priorities on making sure that we can continue with this kind of successful effort and demonstrate that, you know, we have asked these people to make the sacrifice. They did. They have come back. And now it is our opportunity to be able to--it is not a thank you. It is here is a job so that you can be a productive member of society, which is what you want to be. You do not want to be without a job. Thank you very much, Mr. Secretary. Secretary Perez. Thank you. Mr. Cole. We will next go to my good friend, the gentleman from Arkansas, Mr. Womack. Mr. Womack. Thank you, Mr. Chairman---- Secretary Perez. Good morning, Congressman. Mr. Womack [continuing]. For yielding time. Mr. Secretary, always good to see you. Secretary Perez. You, too. PROPOSED CHANGES TO OVERTIME EXEMPTION RULE Mr. Womack. And thanks for your testimony this morning. Let me just say first that I think I can say pretty confidently that we can all agree that enabling more Americans to reach the middle class is a very laudable goal. However, we must acknowledge if there comes a point where Federal regulations maybe are a little short in accomplishing their stated goal and, in fact, hurt some employers. But across the board, it is usually the employees or customers they serve that get hit the hardest. And I fear personally that a ``one size fits all,'' ever- increasing, top-down proposal or answer or regulation affects our job creators. So I want to take some time here this morning to express concerns with the dramatic changes your agency proposed to overtime exemptions, including an unprecedented 113 percent increase in the salary threshold in automatic annual updates. It would be challenging for any employer to quickly adjust to such an astronomical increase, but especially those running on fixed budgets or thin margins, such as nonprofits, small businesses, and State and local governments. As you know, nonprofits and for-profits have very different business models. In fact, in Arkansas, there are many nonprofit CEOs that don't even make $50,440, which I would argue goes a lot further in Arkansas than it does, say, in California due to the vast differences in the cost of living. There is a nonprofit in my district, Independent Living, who does terrific work with developmentally disabled adults in the town of Harrison, Arkansas. Right now, they are struggling to find ways to meet the Affordable Care Act's employer mandate, along with the reality that 80 percent of their employees can no longer use the companionship exemption. Now they will have to face the added burden of complying with new overtime thresholds. In the comments they submitted to your agency, they noted that if the rule stands as is, they will have to convert salaried employees to hourly, and ultimately, there will be a reduction in services. How can a nonprofit serving adults and children with developmental disabilities in a rural community, Mr. Secretary, continue to provide vital services when faced with drastic increases in administrative costs and few exempt staff? Secretary Perez. The overtime rule stands for the simple proposition that when you work extra, you should be paid extra. I can't get into too many of the details of where it is because of where we are in the process. But what I can tell you is what we did beforehand, which is we spent about a year and a half reaching out, building a large table of inclusion, because I am a big believer that if you are going to do this job well, you have got to be a good listener, and you have to approach the enterprise with a healthy degree of open-mindedness and humility. So we heard from a lot of different employers. During the comment process as well, we got comments from nonprofits, some of which expressed concern about the proposal, some of which expressed support for the proposal. I can assure you that I think we got roughly 300,000 comments overall, something like that. We looked at every single one of them and continue to look at every one of them very, very carefully so that we can craft a rule that is consistent with the purpose of the Fair Labor Standards Act, which says that if you work extra, you should be compensated extra. I spoke to many people who have been working 60, 70 hours a week, and as a result of a change that was made in 2004, they are making effectively the minimum wage because they are not eligible for overtime, even though 99 percent of their work is nonmanagerial in nature. So I am thinking about them as well as we craft a final rule, and I can assure you that when we reach a final rule, we will continue to do what we have done throughout the process, which is aggressively engage all stakeholders, including employers large and small, profit and nonprofit, and explain to them. Because I learned--and I spoke to a lot of the people who were involved in the 2004 rulemaking during the Bush administration, and I think it is very important in the aftermath to be out there explaining the various options for compliance because my goal is always to facilitate compliance. OVERTIME REGULATION IMPACT ON SPECIFIC INDUSTRIES Mr. Womack. Real quickly, and I have got a half a minute left, did the agency take into account the disparate impact it would have on, say, like urban versus rural or businesses or nonprofits that have far-ranging hours, differences in hours from week to week or month to month? Secretary Perez. Again, we received comments from folks all over the country, comments from nonprofits in urban areas, comments from nonprofits and for-profit businesses in suburban, ex-urban, and rural areas as well, making the point that you are trying to make. That is why the notice and comment period is so important, and we got, again, something like 300,000, and we have reviewed them very, very carefully. Mr. Womack. I thank the gentleman. Thank you, Mr. Chairman. Secretary Perez. Thank you, sir. Mr. Cole. Thank you. We will next go to the gentleman from Philadelphia, my good friend, Mr. Fattah. Mr. Fattah. Thank you, Mr. Chairman. Secretary Perez. Good morning, sir. Mr. Fattah. Thank you, Mr. Chairman. Mr. Secretary, it is good to see you again. Secretary Perez. Always good to see you again. URBAN TECHNOLOGY PROJECT Mr. Fattah. And I join with you in commenting that the chairman has worked well to try to make sure that the department's efforts can be supported and on our ranking member. I want to thank you for your extraordinary period of public service, and particularly in terms of your work at the Labor Department. Philadelphia has benefited greatly by your work. I want to point out in particular a program that you not only found a way to be supportive of, but you have championed around the country, and I want to mention it because I think it is something that other cities and other communities can look at, the Urban Technology Project, which is taking out of school youth and train them to be computer techs and put them back in the schools to fix computers so that the educational process can go forward. And you not only--I want to thank you particularly for the $2,900,000 or almost $3,000,000 grant out of the pool of dollars that you talked about a few minutes ago, the $170,000,000-plus in apprenticeship. And you are right that these apprenticeship programs, and you funded a host of them around the Nation, have created an impulse that I think won't go away again in our Nation, which is that we need to give young people hands-on experience so that they can, you know, learn what it is to accomplish something and to do difficult tasks, but to understand that they, indeed, can do it. So I want to thank you for that and so much more. Time won't allow. But I do want to say that I did on social media this morning applaud the department for the work you are doing around this overtime issue that was just discussed with my friend from Arkansas. And I do think that these 5 million Americans who are working more have every right to have the Labor Department take a look at their circumstance to make sure that we are applying the rules as they should be applied, and we know that for a fair day's work you should get a fair day's pay. So I want to thank you and look forward to continuing to bring you to Philadelphia and bring more checks with you. All right? [Laughter.] Thank you. TECHHIRE APPRENTICESHIP PROGRAM Secretary Perez. Mr. Chairman, the program he is referring to is we have been very involved nationwide in a TechHire program. I was with former Mayor Nutter in Philadelphia when we rolled out an apprenticeship proposal, and we have invested $175,000,000 not only with the purpose of doubling the number of apprenticeships and facilitating partnership, but also diversifying access to apprenticeship. Making sure that apprenticeship is available in IT, in cyber, in health. We were out in Illinois with Zurich Insurance, one of the Fortune 500 company. They are now having an apprenticeship program for claims adjusters because apprenticeship model has application everywhere, and we want to make sure that apprenticeship is available in every ZIP code in this country. There are literally 5.5 million job openings right now, and roughly 10 percent of them are in IT, and only a fraction require a college degree or above. So whether it is with Chairman Rogers in his district, where we took coal miners who were displaced, at the company called Bit Source and developed the ``Silicon Holler''--and their motto is ``From coal to code''--or whether we are with kids from the Philadelphia public school system. When my iPhone goes on the fritz, I don't call Apple. I go to my 13-year-old. Similarly, these teenagers who have fluency, we are taking that fluency and turning it into a middle-class career. So in literally dozens of cities across this country, this program is taking off. It is a partnership with businesses, with educators, with nonprofits, with schools, and our investments are having a catalytic force. We have another grant program that is out on the street now that is going to take that to further scale, and I am very, very excited about what we are doing there. Mr. Fattah. Well, we are excited, too. We want you to come to Philly and announce that one also. So---- [Laughter.] Mr. Fattah. But let me just say that these 5.5 million jobs that you mentioned that are open and available in our country, you know, we talk a lot about the 72 months, which is great in terms of private sector job growth. The administration has done an extraordinary job. But we don't count in the jobs created this 5.5 million that are open now. We only count a job created by this administration when someone fills it, and maybe in some future administration, we will see that if there is a job open, that that is an important notice to our economy and the strength of our economy. But we need to do more, and apprenticeships are a way to get more young people ready to take on these job opportunities. So thank you, and keep up the good work. Secretary Perez. Thank you. Mr. Cole. The chair would ask that Members not monopolize all the Secretary's travel time and all of his---- Mr. Fattah. Chairman---- [Crosstalk.] Mr. Cole. We have multiple districts we would like you to-- -- Mr. Fattah. We have direct flights to Oklahoma City right out of Philadelphia. I made that offer the other day. Mr. Chairman, I made that offer the other day. [Laughter.] Mr. Cole. You are a popular man, Mr. Secretary. If I can, we will next go to my good friend from Maryland, Dr. Harris. Mr. Harris. Thank you very much. Good to see you, Mr. Secretary. Always good to see a fellow Marylander. Secretary Perez. Good seeing you, sir. Yes, absolutely. H-2B VISA PROCESSING Mr. Harris. But the first issue I am going to bring up, it just seems like Groundhog Day. I mean, every time you come before the committee, I ask you about the H-2B visas. You know, you--coming from Maryland, you know how important those H-2B visas are, especially to our seafood processing industry in my district. And unfortunately, I am told, and I just want to know if it is true, that, first of all, are these applications supposed to receive a notification--notice of approval or notice of denial within 7 business days? I mean, is that the goal of the department? Secretary Perez. Well, there are two phases of that. There is a lengthy process. You first have to seek a prevailing wage determination, and our goal there is 30 days. Then, once you get a prevailing wage determination, then you seek to have the labor certification. Our goal there is 7 days. In the day before the budget was passed, in December, in our processing of the H-2B applications, the 70 percent of the--on the prevailing wage determinations, it was taking 30 days. So we were right at our goal. Mr. Harris. And that is you said it is 70 percent? Secretary Perez. No, no. Then with the labor certifications, the other aspect of the process, the average amount of time it was taking was 9 days. Seventy percent were done within the 7-day period. Then, when the rider passed and the program was dramatically increased, CBO estimated that it was at a minimum doubled, we saw a dramatic increase, and frankly, we fell significantly behind. Because in the middle of a busy season, we were given a whole new set of rules, and told to implement them immediately. We had to stop the program so that we could read the rider, put out guidance, get the new guidance out, get OMB approval, and then implement your new direction. Mr. Harris. Right. Secretary Perez. So that was right in the middle of our busiest season. Mr. Harris. Okay. But you realize that it is getting worse? I mean, in the week of February 5th, the survey from the H-2B Coalition said 12 percent had no determination after 30 days. By the week of February 16th, it was up to 51 percent. By the week of February 22nd, it is 67 percent. You are not getting better. You are getting worse. Secretary Perez. It absolutely got worse. Mr. Harris. Each season---- Secretary Perez. It absolutely got worse. It got worse because of the rider---- Mr. Harris. Well, Mr. Secretary---- Secretary Perez [continuing]. That was passed, Mr. Harris, sir. Mr. Harris [continuing]. You are spending time to make an overtime regulation, which is something that, honestly, I understand the administration wants to do it. But this is hurting the economy in my district. Your department is hurting the economy in my district by dragging your feet on these regulations. Now you have a huge budget. You have a $12,700,000,000 budget. You ought to be able to do what we ask you to do and what the department has set as its goal, which is a 7-day process. Now April 1st is coming up. If we don't have these seasonal employees by April 1st, either those businesses are going to not do business and not contribute to the GDP, or they are going to go and get illegal people to do, undocumented people to do these, neither of which is a good alternative. Secretary Perez. With all due respect, sir, I do---- Mr. Harris. Let me turn to---- [Crosstalk.] Secretary Perez. With all due respect, when you say that we are dragging our feet---- Mr. Harris. That was not a question. Mr. Secretary---- Secretary Perez [continuing]. I cannot allow that to go unsaid. Mr. Harris [continuing]. That was not a question. It is my time. Secretary Perez. Because we are not dragging our feet, sir. We are trying to follow the new rules you put in in the middle of the process. That is your right. Mr. Harris. Mr. Secretary, I am going to reclaim my time. I understand filibustering, and I reclaim my time. You explained it once. I get it. You are late. You are not getting them done. I get it. NEW OVERTIME REGULATION Let me talk about the overtime regulation because you said work extra, get paid extra. What percent of the new--of the employees who are going to be subject to this are getting pay past 40 hours, and what percent are getting--I am not talking overtime pay. I am talking about any pay for the extra hours. What percent? What is it? Secretary Perez. I am not sure I understand your question, sir. Mr. Harris. Well, if you work more than 40 hours, what this new rule says is you have to be paid time and a half. Secretary Perez. Unless you are an exempt employee. Mr. Harris. Are these businesses paying time, but just not time and a half? Are they paying nothing? What percent of these businesses are paying nothing? What percent are paying time or do not pay time and a half? Secretary Perez. Well, again, I don't have specific percentages. I can go back to our NPRM so I get you precise answers. Mr. Harris. What was your gut feeling, Mr. Secretary? And I am actually going to get to a point here. What is your gut feeling? Secretary Perez. Well, there is a substantial number of folks---- Mr. Harris. The majority? Secretary Perez [continuing]. Who work. And again, the typical example that we heard was the person working up to 70 hours a week---- Mr. Harris. Okay. I am going to reclaim my time once again. Secretary Perez [continuing]. Many making $24,000 a year-- -- Mr. Harris. Because you said you don't know the answer, which is striking to me that you made a claim if you work extra, you get paid extra, and you can't tell me how many people are actually getting paid extra right now. Not time and a half, but paid extra. So I am going to just pose a problem here because I have got fast food franchisees come to me and say, you know, the ladder up for some of these people who are from--the typical entry person is from poor neighborhood. They become a manager. They work at the restaurant. Are we going to have a second round, Mr. Chairman? Mr. Cole. I would expect so. Mr. Harris. I hope so. Look, then I will yield back the time, and we will get to it in a second round. Mr. Cole. Okay. I will go to my good friend, the gentlelady from California, Ms. Lee. Ms. Lee. Thank you, Mr. Chairman. Good morning, Mr. Secretary. Just on my time, would you like to respond? Secretary Perez. No, I mean, one thing that Congressman Harris and I can agree on, the day of the week. We have seldom agreed on anything else. And I mean that very respectfully, and I will always aspire to disagree without being disagreeable. But dating back to our interactions in State government, we have seen the world very differently, and I respect that. Ms. Lee. Okay. Mr. Cole. If we could, let us--there will be another round, and you guys will have an opportunity to have another exchange. So let us try and keep it focused. Ms. Lee. Thank you, Mr. Chairman. Thank you, Mr. Secretary. Once again, congratulations to you. You have done a fine job. Secretary Perez. Thank you. DOL'S BUDGET FOR FY 2017 Ms. Lee. And hopefully, within the next few months, we will be able to do even more under your leadership. I wanted to associate myself with the remarks of our ranking member and just make a note that this subcommittee, once again, we are 10 percent below pre-sequestration level. And so recognizing that, the choices that we make are very, very difficult. And some of the choices, you know, I question also, again associating myself with Congresswoman DeLauro's remarks. I am pleased, though, to see the increase for Job Corps funding for $27,000,000. Also the funding stream of $5,500,000,000 to connect disconnected youth to more educational and workforce opportunities, which is an increase also for the it is called the Workforce Innovation and Opportunity Act. That is an increase of $7,000,000 for the very successful Reintegration of Ex-Offenders Program. I wanted to ask you a couple of things with regard to the unemployment insurance, the wage insurance, because I think that is a very important part of the recovery for those who have not benefited from the recovery from the great recession. In the February jobs report, 242,000 private sector jobs were created and a decrease in unemployment rate to 4.9 percent. That is phenomenal. COMBATING MINORITY UNEMPLOYMENT But I am also concerned, consistently concerned that the African-American unemployment rate continues to be more than double the rate of white Americans, as well as the Latino unemployment rate at 5.4 percent. So in revamping this unemployment insurance initiative, how will individuals, especially those from communities of color and those who have not benefited from the recovery, how will they gain access to a good-paying job and stay gainfully employed? And how are you looking at the stark disparities in the racial and ethnic unemployment rates for African Americans and Latinos? Secretary Perez. Sure. That is a very important question. As you know, during the depths of the recession, the unemployment rate for African Americans actually peaked at 16.8 percent. It has now fallen to roughly 8.8 percent, which is obviously far better, but not nearly where we need to be. Latino unemployment is also higher than the national average, and that is why when Congressman Fattah was talking about investments in apprenticeship, we are not only trying to expand the scope of apprenticeship, we are trying to diversify apprenticeship because the program that we visited in the Bay area that day, when we expand opportunity to develop those pipelines to the middle class. I have had conversations with folks at PG&E. You know, the utility industry is undergoing a remarkable transformation. Those are opportunities for middle- class jobs, and we have got to make sure that everybody from every ZIP code has those opportunities. The President's investments in the My Brother's Keeper initiative is a reflection of the fact that there are chronic opportunity gaps for young men of color that we need to focus on, and I have been very proud to be involved in that. The work that we have been doing in the RExO grants is some of the most exciting work that I am involved in because, you know, one of the best ways to reduce recidivism is to give people the skills and the job opportunities so that folks coming out of prisons can become part of the community fabric again. So these are examples of investments, and my parents always taught me that education is the great equalizer, and we have got to make sure that every school in every ZIP code is providing that remarkable opportunity for folks. Ms. Lee. And Secretary Perez, on the--I am pleased to see the Reintegration of Ex-Offenders, the $7,000,000 increase, because I think DOL has a good model, and it is successful. Secretary Perez. It is bipartisan. TARGETED FUNDING TO POVERTY-STRICKEN COMMUNITIES Ms. Lee. I actually note it is bipartisan. Also targeted funding, the importance of targeted funding into poverty- stricken communities is very important. So what is your take on that? And come back to Oakland. We are a TechHire city, and Mandela Training Center is the one you were--we want you back. Secretary Perez. If you didn't have a plan in the apprenticeship grant applications to make sure that apprenticeship was available to historically underserved communities, you weren't going to get a grant. Ms. Lee. Mm-hmm, okay. Thank you. Poverty-stricken, I have 8 seconds left. Targeted funding into poverty-stricken communities, is that---- Secretary Perez. Well, again, the apprenticeship investments, our summer youth job investments, things of that nature are examples of our efforts to get money where we have chronic opportunity gaps. Like Baltimore City last summer, where we were able to get $5,000,000 of DOL dollars targeted to the zip codes that needed that most. Ms. Lee. Okay, thank you. Secretary Perez. Good morning. Mr. Cole. Would you like to revise your budget to get additional travel money so you can---- [Laughter.] Secretary Perez. I would very much appreciate that. I will take the bus---- Mr. Cole. That makes bipartisan sense, Mr. Secretary. Secretary Perez. I will take the bus if necessary if we can get to more Members. Mr. Cole. If we next can go to my good friend from Virginia, who, sadly, we will be losing. I regret that every time I have the opportunity to call on him that he is not going to remain in Congress past this year. But he will make every minute count. So my friend from Virginia is recognized. Mr. Rigell. Well, thank you, Mr. Chairman. It is good to be here. Secretary Perez. Thank you for your service. MANDATORY VS. DISCRETIONARY SPENDING Mr. Rigell. It is a privilege to serve on this committee. Secretary Perez. Thank you for your service, sir. Mr. Rigell. Thank you, Mr. Secretary. Good to see the passion for your work, and I respect and I appreciate it. I do try to start out generally with what do we have in common, and there is much that we do have in common. I think the apprentice program, I really respect that. I have seen it work, and so I applaud you for that. I do need to quickly pivot to something that there is a serious disagreement on, and that is this--this propensity to shift things over into mandatory spending. Just like we are all in this room here today, we are all in this together with respect to our country's fiscal situation. And I really don't think it can be overstated. And I think both parties, it is not--this isn't a time and place to debate how we got there, but I really think we have got about a 10-year window to get this right, and it is closing. And it really sobers me. And so the voting card that I have in my pocket, there is almost a fixation in this institution on the discretionary side that we largely can't address the mandatory side. And it may surprise my colleagues on the other side, but as a business person who has transitioned into public service, I really don't see that the discretionary side is what is driving our fiscal situation. And I would be willing to lift them to a reasonable degree, provided, of course, that we had substantive and real, genuine reforms, as President Obama himself has said need to be done, if that could be implemented. So I just say that as a word to all of us. That has to be done. But for that reason, I wouldn't support the transition and the movement of spending into the mandatory side. We just-- we have demonstrated an inability to do what must be done to do what is right for the next generation. FIDUCIARY RULE Let me pivot to something that has really come up consistently in Virginia's Second Congressional District, and that is the fiduciary rule. I rarely have seen an issue generate so much attention in, frankly, meetings with me across our district and, indeed, up in Washington about this. And there is just a troubled look in the advisers that I see. They are good men and women. They love our communities. And you know, we go to church with them or we see them in the grocery store, and they are out there in our communities, and they are deeply troubled by this fiduciary rule. And I think, for example, when we see that Morningstar, the organization, that rating group, they have actually more than about doubled their estimate as to what your own Department of Labor said the impact would be on that. So I think that you are underestimating the impact of it, and would you address specifically, if you are familiar with it, the outside group's assessment that the impact is far greater than what Department of Labor has indicated that it would or believes it to be? Secretary Perez. Well, first of all, again, thank you for your dedicated service. It has been an honor to interact with you. There are few issues that I have spent more time on in my tenure than the conflict of interest rule. When I was nominated, I was asked a lot about this, and I made a commitment, and the commitment was this. I would slow the process down. I would build a big table, and we would listen and listen long and hard. I can look you in the eye with a fair degree of confidence and say every time I got a call from a Member of Congress, Republican or Democrat, who said, ``Can you talk to so and so from my district?'' we did that. It was either me or someone from my staff, and more frequently, it led to more than one conversation because we always got smarter as a result of those interactions. The conflict of interest rule is a reflection of the fact that in our Ozzie and Harriet era of our parents, this conversation was irrelevant because people worked 30 years. They had a defined benefit plan. They would get a pen, a party, and a pension when they retired. And now in the world of IRAs and 401ks, people have to take control of their universe. I very much agree with you when you said that the folks who are in this industry are good people. This is not about folks who wake up with malice in their heart in the morning. This is about a system where the incentives are not properly aligned with the best interests of the consumer. Mr. Rigell. Well, I have---- Secretary Perez. And that is what we have heard consistently. And I welcome---- Mr. Rigell. I have got maybe about 40 seconds left. Let me, if you would, pivot over to the difference between Morningstar, for example, outside respected groups and their assessment of the fiscal--I mean, the financial impact of this versus Department of Labor's. There is a great disparity between the two. And it has been my experience and I think just by observation we can conclude that generally the impact of Federal regulations are underestimated, not overstated. So here we go again, I believe. So in the 10 seconds, go ahead. Secretary Perez. Sure. Real quickly, we have received a voluminous amount of comments, both in the formal comment period and before, including from Morningstar, including from other folks who are already fiduciaries who support this rule. What we are in the process of doing right now, and it was over 300,000 comments there as well, is taking all of those comments into account to craft a solution, and we have made a commitment to doing that outreach. Mr. Rigell. I thank you. I am a little over, and I want to respect the chairman's commitment to the 5-minute rule. But I thank you for your testimony. Mr. Cole. It is thoughtful questions like that in a manner like that is exactly why my friend should reconsider and run for reelection. [Laughter.] Mr. Rigell. You should talk to Mrs. Rigell. [Laughter.] Mr. Cole. I think I would lose that debate. Next I would like to go to my good friend from Alabama, Mrs. Roby, for whatever questions she would care to offer. Secretary Perez. Good morning, Congresswoman. Mrs. Roby. Thank you, Mr. Chairman. Good morning. Secretary Perez. Good to see you again. PAID LEAVE PARTNERSHIP INITIATIVE Mrs. Roby. You as well. The fiscal year 2017 budget for the Department of Labor requests $2,200,000,000 in funding for the administration's Paid Leave Partnership Initiative. They are going----these funds are going to be used to fund five States selected to implement this paid leave program to support leave requests under the Family Medical Leave Act. It would provide 50 percent of the cost to launch these paid leave programs for 3 years. The grant could be used to cover family, parental, or medical leave programs that provide up to 12 weeks of benefits. So the Department of Labor mentions that grants will be awarded competitively to States that are well positioned-- ``well positioned to proceed with full implementation of a paid leave program.'' Please explain to us what ``well positioned to implement a paid leave program'' means. And to follow up with that, explain how these well positioned States will cover the entire cost of the program after the 3 years. Secretary Perez. Well, thank you for your question. The United States is the only industrialized nation on the planet that doesn't have some form of Federal paid leave, and we have seen the consequences of this. People talk about the need for higher labor force participation rates. If we had a paid leave system like Canada did, we would have more women in the workplace. Mrs. Roby. What does it mean to be well positioned to---- Secretary Perez. Well positioned means you have the partnerships in place. You have the political will to move forward. You have begun the actuarial analysis. A number of States that have put in place paid leave systems, California was the first, and employers don't pay anything. It comes out of the employee. They use the temporary disability insurance system. So---- Mrs. Roby. What about the other 45 States? To me, this seems like another bait-and-switch scheme where you are going to fund these programs for 3 years, and then what happens to sustain it after? Secretary Perez. No, it is--actually, for instance, the State of Connecticut is looking right now at building a paid leave system, and we have been providing technical assistance to them. They are well placed to, I think, move forward, whether it is this year or next year. It is not at all a bait- and-switch system. It is a system that provides an incredibly important benefit for parents who are oftentimes giving birth on a credit card because they have got to go right back to work after. WORKING FAMILIES FLEXIBILITY ACT Mrs. Roby. Well, this is a great opportunity, as I have mentioned to you before, to bring out the Working Families Flexibility Act, which is legislation that I have introduced in the past two Congresses, which would amend the Fair Labor Standards Act to allow employers and employees to enter into a voluntary agreement whereby hourly wage employers could convert overtime pay to compensatory time off. My proposal is not an unfunded entitlement, which I believe is what the Paid Leave Partnership Initiative is. But my legislation allows hard-working families the flexibility to use their hard-earned money in ways that they see fit. And if they need time off, it is there, and there is cash out provisions that protect the employee to ensure that they can get the cash, if that is what they ultimately determine. So, Mr. Chairman, I know that you and many others on this committee have supported H.R. 465. I hope we can all understand that commonsense solutions, like the Working Families Flexibility Act, are the best options given our fiscal outlook as a Nation, not unfunded entitlement schemes like the Paid Leave Partnership Initiative. And I want to quickly pivot here to ask you about the voluntary--hold on just a second so I don't spill my coffee. [Laughter.] Secretary Perez. That is very important. Mrs. Roby. It is. It is. Secretary Perez. Been there, done that. OSHA VOLUNTARY PROTECTION PROGRAMS Mrs. Roby. The VPP programs, and I have discussed this with you before. The fiscal year 2017 Department of Labor budget request states that OSHA will continue to improve the Voluntary Protection Program in fiscal year 2017, with special emphasis on program consistency and oversight, data integrity, and reevaluation of policies for VPP sites with injury and illness rates higher than industry averages. So has the Labor Department produced a report, which evaluates the effectiveness of these OSHA compliance programs? Secretary Perez. Well, we very much support the program, and what we have done now, we have 1,400 Federal VPP sites. In fiscal year 2015, we exceeded our goal, and we approved 315 sites and brought 70 new sites into the program. We have worked with folks in Republican and Democratic districts because this isn't red or blue. This is red, white, and blue. Mrs. Roby. With 5 seconds left, I just want--I want a commitment that you will submit a report to this committee. Secretary Perez. Sure. I will also have OSHA, you know, the head of OSHA come and visit you and talk about where we are at in the program so that you can get not only a specific accounting of where it is going, but where it is going in your particular district as well as the Nation. Mrs. Roby. I would appreciate that. I yield back. Thank you. Mr. Cole. Thank you. We next go to my good friend from Tennessee, Mr. Fleischmann, for any questions he would care to submit. Mr. Fleischmann. Thank you, Mr. Chairman. Secretary Perez. Good morning. Good to see you. Mr. Fleischmann. Good morning, Mr. Secretary. I am sorry I was late. I was at another hearing. Secretary Perez. No, that is multitasking. Mr. Fleischmann. We have got multitasking, but it is always good to see you. Secretary Perez. Good to see you, sir. PROPOSED RULE CHANGES TO EEOICPA Mr. Fleischmann. And I thank you for your service, sir. Mr. Secretary, the Office of Workers' Compensation Program has published the Notice of Proposed Rule Changes to the Energy Employees Occupational Illness Compensation Program Act. This affects a lot of our workers in Oak Ridge---- Secretary Perez. Right. Mr. Fleischmann [continuing]. Who from the Manhattan era have been exposed to a lot of things during the years, and there is a lot of chronic illnesses, sir. I would like to ask a series of questions to clarify these proposed changes. Secretary Perez. Sure. Mr. Fleischmann. The proposed rule changes alerts medical providers that the Department of Labor may adopt the home health prospective payment system, which was devised by the Centers for Medicare and Medicaid Services within HHS. First question, sir. How would the proposed rule change, if implemented, alter the existent method of paying for home health services, and how will it affect the quality of care? In other words, will the payments to healthcare providers be less than they are currently, or will fewer services be authorized? Will payments for the same services be delayed, sir? Secretary Perez. Right now, we are in the middle of the rulemaking process on that precise rule, sir. We have received a number of comments on that, including issues relating to your questions. So, at the moment, we are reviewing that because it is a very important question, and we have gotten a lot of feedback from a number of key stakeholders. So I don't have an answer to that right now because we are reviewing the feedback to figure out how we put the rule, the final rule in place. But our overall goal in this is to build a fair system that helps the workers who have suffered and improves the adjudication process to make it, you know, again fairer and more efficient. Mr. Fleischmann. Would you agree with me, Mr. Secretary, that if you altered it in the way that I alluded to in the first question that it would be a disincentive for providers to participate in the healthcare and management of sick workers, many of whom have several chronic medical problems? IMPACTS OF PROPOSED EEOICPA RULE CHANGE Secretary Perez. Sure. Sir, I have personally met with a number of folks who have suffered as a result of workplace exposures in various contexts. We owe it to them to make sure that we build a system that works for them and a system, frankly, that works for providers as well, because it is hollow to say you have a right if you can't get to a provider. Mr. Fleischmann. Thank you, sir. Some providers in the area do not accept Medicare. Does it, therefore, make sense to apply Medicare payment standards to a program which is supposed to supplement medical services for disease-ridden atomic energy workers? Secretary Perez. Sure. Well, again, that is another one of the comments that we received and we are reviewing, and I think it is a very, very important question, which is why we take it very seriously. Because we are in the rulemaking process right now, I can't get too much further down the road, other than to say that we take that very seriously and we very much appreciate--I know you have had a continuing--you have been a great leader for folks in the community on this, and we have appreciated your engagement. Mr. Fleischmann. Thank you. Thank you. If I may, Mr. Secretary, what input, if any, did the Department of Labor receive from local doctors, for example, in the east Tennessee area, if you know, or from home health agencies in formulating any of the proposed rules relating to medical services? Does the Department of Labor know if such providers would be willing to agree to provide services under the home health prospective payment system, sir? Secretary Perez. Well, I don't know--what I do know is that we always aspire and I think we do a pretty good job of building a big table so that we hear from everyone. What I would offer to do is to make our head of the Office of Worker Compensation Program available to come and talk to you and, to the greatest extent that he can, you know, talk with real granularity about the situation, especially as it affects your community. Because you obviously have strong equities in the resolution of this. Mr. Fleischmann. Thank you. And I am cognizant of the fact that you are in the rulemaking process, but are there any provisions in the proposed rule changes which would limit physician choices by beneficiaries? Section 30.405(b) appears to do that. This is concerning because some of the beneficiaries have multiple health conditions, which require treatment from multiple specialists, sir. Secretary Perez. Well, sometimes there are proposals that are out there that people perceive as having an impact one way or another, and that was one example that you cite. And so we are certainly aware of that concern and in our rulemaking process very much attuned to that. And again, I think our director, if you want him to come by, we can have a much longer conversation about that and so many other issues. Because here is the bottom line. We want to get this right. We want to do right by the folks who spent their career in public service and now have some serious health issues. We owe it to them to make sure that we have a system that treats them fairly. And you have remarkable insights into how we accomplish that goal, and so I want to take advantage, frankly, of your perspective. Mr. Fleischmann. Thank you. Well, Mr. Secretary, I want to thank you for your commitment to working with me and to help our affected workers in Oak Ridge because they have sacrificed. They are suffering. And with that, I thank you. And Mr. Chairman, I yield back, sir. Mr. Cole. Thank you very much. WORKFORCE INNOVATION AND OPPORTUNITY ACT Mr. Secretary, one of the challenges we often have in government at all levels and all departments is, you know, we focus on a lot of different things, and sometimes we don't get some of the tasks that we need to get done in a timely manner. The Workforce Innovation and Opportunity Act, as you have mentioned several times, was enacted in July of 2014, overwhelming bipartisan support. Really one of the great work products Congress and the administration working together produced, and I certainly appreciate your role in that. The act included many reforms intended to consolidate and improve the workforce development system. The committee is concerned that the department continues to miss statutory implementation deadlines despite the fact that appropriations for technical assistance funds to implement the law have actually been provided in excess of the amounts requested by the department. In addition to funds already provided totaling $25,000,000, the department requests an additional $26,000,000 in technical assistance funds for the fiscal year 2017 budget. Can you tell me whether or not the department will be able to finalize the regulations implementing WIOA before the end of the year? And then what is the proposed use of the technical assistance funds in fiscal year 2017 if the law is, indeed, fully implemented? Secretary Perez. Let me say at the outset, WIOA is one of my favorite pieces of legislation to have had the privilege of being involved in. It is a game changer. And it is a bipartisan game changer. We expect to have the final rules in place by the end of June, and the process that led us to there has been a remarkably inclusive process. I used to work in local and State government, and the instruction I gave to my team is we need to listen and then listen some more and listen some more to our State partners because they are going to have a lot of insights. The rules are voluminous, 1,800 pages. We built a big table. Our career folks, they worked through Thanksgiving and Christmas of last year to get all those things out. The vast majority of the act, Mr. Chairman, is actually already implemented as of July of last year. FINAL WIOA IMPLEMENTATION What remains to be implemented are the accountability systems there put in place and the State plans, and the good news there is because we have been working throughout with the States, over half the States already have draft plans. The big purpose of WIOA was to implode silos and stovepipes, make sure that the workforce people and the education people and the HHS people are working together. So today, for instance, 40 States, 4 outlying areas, they already have the new State boards that WIOA called for. We have shared 41 pieces of operating guidance, 28 webinars that we have conducted. I just went to the conference that I used to go to in D.C. about 8 weeks ago in the middle of the storm. Every State except one was able to make it, and there is a tremendous energy out there. I want to say thank you to you and your staff because we have been working on this together with Republican and Democratic staffers in the House and Senate. I am excited about where we are. The silo busting is in full force, both in the Federal Government, where we have been working better than ever with Department of Education and HHS and others, and now at State and local governments. That is good because people don't have a labor issue or an education issue. They just want a good job, and they want the skills to compete. So I am excited, and we will have the final rules in place by end of June. Mr. Cole. That is good to hear because I think finishing this up, I mean, as you pointed out, the administration has only got about 10 months. I think it would be---- Secretary Perez. Three hundred eleven days, but who is counting? Mr. Cole. Yes, but you would want to get this done. Secretary Perez. I absolutely do. TECHNICAL ASSISTANCE BUDGET REQUEST Mr. Cole. If that is the case on that, what are the additional employees--I think you asked for 17 additional folks and $26,000,000 additional. Is that necessary? Secretary Perez. Oh, the work--yes, I mean, the work is--I mean, we have done a lot, but the work is just beginning. So, for instance, we are trying to build data systems now so that the data system in the State Department of Education can talk to the data system in the State Department of Labor, can talk to the data system elsewhere. Because we want to track, for instance, wage data. And we did that in our programs, but the adult ed folks didn't do that. And so the work that we are doing and the resources that we seek is to make sure that we can continue the stovepipe implosion process, and it is--it is a formidable challenge when you are trying to build one big sandbox. Mr. Cole. Well, good luck on that. I have seen Department of Veterans and Department of Defense work on this my entire career and not get it done. So---- Secretary Perez. I hear you. Mr. Cole [continuing]. I wish you well in the technical endeavor. With that, I want to go to my good friend, the gentlelady, for the next round of questioning. Ms. DeLauro. Thank you very much, Mr. Chairman. DOL APPRENCTICESHIP AND REEMPLOYMENT PROGRAMS Just a couple of comments, and then a question that I have on wage theft. Let me congratulate you on the apprenticeship program. Europeans have been doing this for years. It not only is a vision for what we should do, but what we can do with Federal resources in this area. Secondly, Reintegration of Ex-Offenders. I was at the New Haven Correctional Center just about 2 weeks ago, and soon they are going to open up through the funding, through the Workforce Alliance, the opportunity for the Department of Labor and these offenders, who are ex-offenders who are getting ready to leave and how we can help to get them employed and be able to pay taxes. H-2B VISA PROGRAM A short word on the H-2B visa program. The Labor, HHS bill added several riders, which made the program more complicated to implement, weakened protection for workers in those H-2B industries. First, riders that require the department to use private wage surveys to set prevailing wages caused a delay in processing H-2B applications. We should not shift the blame for the backlog that was caused by this Appropriations Committee. Another rider blocks the department's ability to audit an employee's H-2B application. The Inspector General has said that this rider will make it more likely that fraud will exist in the H-2B program through no fault of the department. Let us be real. This is a problem that was caused by the Congress and by this committee. It is not the Department of Labor's fault. WAGE THEFT Now my question on wage theft. It has become an epidemic, Mr. Secretary. According to a recent three-city survey conducted in Los Angeles, New York, Chicago, two-thirds of workers in low-wage industries experienced at least one pay- related violation in any given week. Research estimates the loss per worker over the course of a year, $2,634 out of total earnings of $17,616. This is particularly harmful when workers are already economically distressed. Tomorrow, I will introduce a comprehensive bill to address wage theft with Senator Murray. Can you tell us how widespread this problem is, resources needed at Wage and Hour to tackle the wage theft? You propose hiring an additional 300 investigators to staff the Department of Labor's Wage and Hour Division. Is that enough? And what about the fines? Are they sufficient enough to deter folks from making these unwise decisions to violate the law? Secretary Perez. Wage theft is a huge problem across this country, and let me give you one example. We commissioned an independent study that focused on two States, California and New York, and found that just in those two States, the amount of wage theft approached $1,000,000,000 a year, just in those two States. Not surprisingly, heavily concentrated on lower- income workers. These are folks who are not making enough money to feed their family in a good week, and then to have your wages stolen, effectively, adds insult to injury. That is why we have had a very concentrated focus on making sure that we are doing our level best in this context. By the way, we hear from employers all the time who say thank you because they are playing by the rules. They are paying their folks above the table, and their competitors aren't. That creates an unlevel playing field. So this is not only good for workers, but this is rewarding employers who play by the rules. That is why our budget request seeks an increase so that we can do more in the Wage and Hour enforcement context. Because it is critically important. It is a chronic challenge in sectors across America, and that is why we have been so laser focused on this. Ms. DeLauro. My understanding is that the fine for violations and repeated violations is about $1,000. Secretary Perez. Well, we have been using--we have been making more use of liquidated damages, but all too frequently, I mean, the challenge that we encounter is it is a cost of doing business enterprise. Actually, what we will do sometimes is we will conduct an investigation, and we work very closely with a number of State partners. Then, at the end of the day, we may have our State partner move forward because sometimes the State law actually is better than the Federal law. More often than not, it is not. And frankly, in the State of Florida, under former Governor Bush, they actually eliminated the wage and hour enforcement. So there is no State partner down in Florida, which puts more onus on us to be moving forward. That is why this work is so critically important. Ms. DeLauro. Thank you, Mr. Secretary. Let me just say I am glad to hear you say that Connecticut was well positioned in terms of their paid family leave. Secretary Perez. Very hopeful. Ms. DeLauro. Very hopeful. Thank you. Mr. Cole. Would you like to invite him to come to Connecticut? [Laughter.] Ms. DeLauro. I have, and he has come to the State of Connecticut. Secretary Perez. You can invite me to Oklahoma, too, sir. Mr. Cole. Absolutely. Absolutely. We are going to--you know, you are going to have a lot of frequent flyer miles when you leave. Secretary Perez. That is right. Mr. Cole. Next we will go to my friend Mr. Harris from Maryland for the next round. Mr. Harris. Thank you. Thank you very much, Mr. Chairman. Okay. I will just make one comment, and it is not a question. Last year, because I was trying to reflect, what were we talking about last year about H-2B, and it was the court's fault last year. So you came in and said, look, it is the court's fault. We had this court case, the court's fault. So let me see. Last year, it is court's fault. This year, it is Congress' fault. Does it go back to court's next year, or does the Labor Department--and this is a rhetorical question. Does the Labor Department ever take responsibility for the delays in the H-2B program? I just have to ask. There is an emergency--and this is a question. There is an emergency procedure. You can submit an application in an emergency procedure. I am going to assume that if it is under an emergency procedure, you might really want to try to hit the 7-day processing deadline or goal. But in the latest survey, 46 percent of the emergency applications weren't completed, didn't receive a notice of approval or notice of denial within 7 days. So how does an--I just have to ask you. How does an employer get their employee in place for an April 1st seasonal start? If the regular procedure has 67 percent more than 30-day wait, the emergency procedure is almost half, 7 days, and 7 days the goal, does the department have a plan on this? I mean, or it is just we really don't care about H-2Bs because there are other special interests that don't want H-2B workers in the country? Secretary Perez. We do care about H-2B, and we care about the full and effective enforcement of H-2B. When we get the assembly line doubled or as much as tripled on December---- Mr. Harris. Mr. Secretary? Mr. Secretary? Secretary Perez. Sir, okay---- Mr. Harris. Mr. Secretary, let me just back you up here because I am going to have to stop you when you say things like, you know, work extra, pay extra. Double or triple. Secretary Perez. Sir? Mr. Harris. Do you have a tripling in the number of applications this year? Secretary Perez. I will give you the specific data on the number of applications that we got, okay? Mr. Harris. Did it triple? Secretary Perez. Absolutely. I will tell you the exact---- Mr. Harris. Did it triple? Secretary Perez. Double or triple is what I said. I will get you the precise data. The problem, sir, is you told us to do twice as much work with the same amount of resources. Mr. Harris. So it is twice the number of applications? Secretary Perez. I will get you the numbers, as I stated, sir. Mr. Harris. Is that your testimony today? The number is twice? Secretary Perez. I told you--my answer for the third time is that I will get you the precise data. The applications doubled over late December and early January. We had the same resources to process those applications. I accept responsibility for the fact that we are trying to do our best, and sometimes we have issues like IT. But you know what, sir? I think there is rather than playing the blame game, I think what we should try to do is fix the system because we did make a commitment a year ago that we would have a rule in place by the middle of April. I made that commitment to Senator Mikulski and others. And guess what? We made that commitment, and we put a rule in place by the middle of April. And Congress gave us a new rule on December 16th, told us, you know, implement immediately. No new resources, but implement immediately. We read it. We put a new system in place something like 17 days later because we did want to read what you told us to do. When we did that, it absolutely resulted in delays. Delays will result in mistakes because we have the assembly line moving faster. The Bush administration rule had an audit function in 2008 because they understood that you needed to make sure you had an audit system in place so that it was a check on the fact that the assembly line was moving fast. This was taken away. So when we have folks who get those certifications and they were in error, the audit function, we can't correct that when it is done. That is the reality of our world. Mr. Harris. The reality of my world is, is that my employers are not going to have workers in place because the hang-up was DOL, period, full stop. The hang-up was DOL. PROPOSED FY 2017 MANDATORY BUDGET Now let me ask you about because I also have concerns what the full committee chairman said about this tendency to go to mandatory, to expand the number--the last thing this country needs are more mandatory expenditures, the last thing. So I have got to ask, so I look at some of these programs, say, you know, for some things, maybe mandatory makes sense because you got to even out, you know, the year-by-year variation. But one program is the mandatory funding to provide summer--I am sorry, yearlong first jobs to 150,000 opportunity youth. Now these are yearlong jobs. These are not 4-year jobs or 5-year jobs. So to the untrained eye, it would look that the only purpose of making this a mandatory expenditure not subject to annual appropriations is to get around the spending caps because these are yearlong jobs. These are not 2-year long jobs. These are not 5-year science, cancer science research projects. These are yearlong jobs. Simple question, Mr. Secretary. Why can't that be subject to annual appropriations? Secretary Perez. Well, sir, we have a serious youth unemployment problem. Congresswoman Lee asked a very important question about the fact that zip codes all too frequently are determining destiny in this country. When you look at the history of this Congress' investment in young people, it was a far more robust history and a bipartisan history in recent years, and we have to ensure that we address these issues of chronic poverty and the absence of opportunity. I respect the fact that we have a different perspective on that, but that is certainly my strongly held view. Thank you very much. Mr. Harris. Thank you. Mr. Cole. I would ask that we, in fairness to the Secretary, not push the questions to 2 seconds before the expiration of time because he deserves a chance to answer. And we have got few enough people here. We will have an opportunity to go around again if we need one. With that, let me go to my friend Mr. Dent from Pennsylvania and for whatever questions he cares to pose. Secretary Perez. Good morning, sir. Mr. Dent. Good morning. And thank you, Mr. Chairman. I apologize for being late. I had another hearing this morning. OSHA RETAIL EXEMPTION RULE Mr. Secretary, in December, Congress--and the Congress passed and the President signed into law the omnibus appropriations bill, which included language in the joint explanatory statement that prohibited OSHA from using funds to enforce the July 22, 2015, retail exemption memo unless OSHA went through notice and comment rulemaking. On December 23, 2015, just 6 days later, OSHA issued a memo that delayed enforcement of the memo until the first day of fiscal year 2017, which is a good thing. However, simply delaying enforcement is not what Congress directed the agency to do. Why has OSHA decided not to go through a proper public notice and comment rulemaking on this so-called retail exemption? Secretary Perez. Congressman, I think we did comply with the rider, and we did extend the effective date to October 1. The context of this issue, and I very much appreciate your question, is the horrific incident that occurred in west Texas, where there was a dramatic explosion that killed 15 people, mostly first responders. If it had occurred in the middle of the day, there would have been schoolchildren who died because it leveled the school. Fortunately, nobody was there. As a result of that incident and other recent chemical plant catastrophes, the President issued an executive order that directed us to enhance safety and security in our chemical facilities. So we were very motivated by the fact that we had first responders whose lives were taken there, and we wanted to prevent such a thing in the future. We carefully considered, and by the way, we did receive comment on the guidance that we put out because we certainly valued that. But the first responders were very much on our mind, and you know, we have had other litigation that addresses the question that you ask about whether we can--whether we have the ability to do guidance here. The Supreme Court in the mortgage bankers case did uphold our ability to do guidance, and the matter is in litigation. We will obviously respect whatever the outcome of that case is. But I wanted to give you an understanding of why we chose this route. We wanted to make sure that we could prevent as soon as possible another catastrophe. IMPACT OF PSM COMPLIANCE Mr. Dent. Yes, and certainly safety is on the forefront of all of our minds in respect to this tragedy in Texas and elsewhere. But I have been hearing from a lot of my farmers and agricultural retailers who tell me that they are getting out of the anhydrous ammonia business because of the significant cost and burdens of complying with the process safety management, the PSM. My concern is that fewer facilities carrying anhydrous ammonia could actually have adverse safety effects. Farmers and retailers are going to be forced to travel much longer distances on the road to get this anhydrous ammonia to the farm and/or anhydrous ammonia will be stored at entities which are not going to be regulated by OSHA. That is my concern on the safety, that this stuff is going to be stored elsewhere. People are making--the farmers and the agricultural sector making much longer trips to move this stuff, to get it to the farm. And I am not sure that that is going to lead to greater safety. So I would be curious to hear your comments on that. Secretary Perez. Well, we heard a number of different comments during our period when we were soliciting comments, and we heard from a lot of first responders who indicated that a big concern of theirs was what I have described. We have continued to work very close with industry, and I would be more than happy to, if there are folks in your district, I want to make sure--we have a shared interest in getting it right. Nobody has a monopoly on the commitment to safety---- Mr. Dent. We want to do the right thing. Secretary Perez [continuing]. And we all want to do the right thing here. So I would be more than willing to figure out a way to work with you to see if there are things that we should know that we don't know because I am never--again, you have got to bring some humility to the enterprise. So if you have other things to bring to our attention. Mr. Dent. That would be very helpful because the PSM standard requires manufacturers and distributors to develop and implement a PSM program any time they have at least a minimum amount of highly hazardous chemicals involved in a process, including storage. So I guess what the question is, and you just offered it, that would be great if OSHA could hear from some of the stakeholders through the public comment and review period. That would be very, very helpful. I think they need to be heard on this because, I said, we want everybody to be safe. But I am worried about farmers going greater distances, going to remote locations to pick up this material, and we are going to have safety issues. Secretary Perez. Well, then we are committed to not enforcing it in this fiscal year, and we are also committed to continuing to work very closely with industry and with other stakeholders like yourself because we all want to get it right. IMPACTS OF OVERTIME RULE Mr. Dent. Just a final comment, too, and my time is up. Just--you don't have to respond. I know you talked about the overtime rule. I just wanted to mention that this issue is creating a lot of hardship for my not-for-profit sector in my district. When my YMCAs call me and say doubling that exemption to $50,000 a year is creating real hardships in terms of managing small nonprofits. I just want you to be aware of that. Thank you. Secretary Perez. Thank you, sir. NPRM FOR DRUG SCREENING OF UI CLAIMANTS Mr. Cole. Okay, Mr. Secretary, on February 22, 2012, President Obama signed Public Law 112-96. It is the Middle Class Tax Relief and Job Creation Act of 2012. It is bipartisan legislation authorizing drug screening and testing of unemployment insurance claimants in very limited cases. Nearly 20 months after the President signed the law, the Department of Law issued the Notice of Proposed Rulemaking, NPRM, pertaining to this provision. It is my understanding that the NPRM falls significantly short of achieving the intended purpose of the statutory provision. It places significant limitations on when drug screening and testing can occur, all but ensuring that the law will not be implemented as intended. I know that members of the Ways and Means Committee have repeatedly raised similar concerns regarding the NPRM and have received, in their view, limited communications from the department. Could you tell us what your plan is for actually finalizing the rule, and will the final rule address the concerns and recommendations raised by other Members of Congress submitted formally through the public comment period? Secretary Perez. We certainly take seriously our obligation to uphold the integrity of the UI program. We got a lot of feedback, and it was all very constructive feedback. We did a lot of review, and the final rule, the proposed final rule was sent over to OMB yesterday. So that process now begins over at OMB because I remember-- I had a whole list of things that I knew that we needed to get done. This was a mandate that Congress gave us, and we take that responsibility very seriously. So it went over, I think, yesterday, if my memory serves me. But it is over at OMB. Mr. Cole. Did the hearing have any force in triggering---- Secretary Perez. Oh, come on, Mr. Chairman. [Laughter.] Secretary Perez. The overtime rule went over yesterday as well. So---- Mr. Cole. Yes. Secretary Perez [continuing]. You know, one could argue that maybe one should wait until the end of a hearing to send that over, but that is not what we do. When we are ready to send something over---- Mr. Cole. No, no, I just---- Secretary Perez [continuing]. We send them over. Mr. Cole. Deadlines sometimes are helpful. Secretary Perez. There is nothing like a deadline to focus the mind. Mr. Cole. Yes, we are not going to have too much time left. So I am going to stop my questioning at that point to make sure that every Member has an opportunity to get at least one more question in, if we may? Secretary Perez. Okay. Great. Mr. Cole. With that, I will go to the gentlelady from Connecticut. Secretary Perez. Thank you, sir. ENDING LONG-TERM UNEMPLOYMENT Ms. DeLauro. Thank you very much, Mr. Chairman. A quick question, if I might, on long-term unemployment. We talked about expanding reemployment services for UI. I just wanted to bring to your attention, I think you know about it, the Platform to Employment Program, the P2E program that Connecticut has undertaken and, I might add, quite successfully. Nearly 80 percent of Connecticut participants who complete the preparatory program take the next step into a work experience at a local company. Of this population, nearly 90 percent have moved to employer payrolls. How does your budget deal with leveraging these public- private partnerships to help a P2E program succeed? Secretary Perez. Sure. When you look at the success, whether it is Oklahoma, Maryland, or Connecticut in the workforce space, it is a joint venture of Federal, State, and local governments and the private sector, educators, nonprofits, faith communities, tribes and others. This is no different. The work we have made and the progress we have made on long-term unemployed has been a function of the fact that there has been remarkable innovation. We know--we have a much better idea today of what works than we did 5 years ago, and let me give you one quick example. There is a tool in our toolbox in the workforce system. We call it on-the-job training. What it really is, is we will subsidize your wage for a certain period of time. So an employer looks at a worker who has got an 18-month gap on her resume. Katherine Hackett from Connecticut---- Ms. DeLauro. Right. Secretary Perez [continuing]. Is an example. Remarkably talented, but you know, but for the grace of God could have been any of us who lost their job. This employer looked at her and said, you know, she has like 70 percent of what I need. Then we give them that final push. So we subsidize the wage for a certain period of time, and then at the end, it is the employer's choice whether they keep them or not. We have an over 90 percent success rate with this program, and we have targeted it in many communities to the long-term unemployed, and it has been tremendously successful across different sectors. So unemployed engineers who are in their fifties and confronting a number of barriers, but with remarkable talent. So we have learned so much. You know, a crisis does create opportunities to learn and then move forward. DOL WORKER PROTECTION AGENCIES Ms. DeLauro. Let me ask about worker protection agencies at the department. OSHA and MSHA protect workers from health and safety hazards. Wage and Hour makes sure workers aren't cheated out of their wages. OFCCP enforces rules for Federal contractors against discrimination on race, sex, religion, disability. EBSA ensures retirement savings and health benefits are secure. These programs, Mr. Secretary, were flat funded last year, despite the $66,000,000,000 increase in defense and nondefense. It is not just the refusal to fund the initiatives. Agencies rely on personnel. Flat funding means absorbing small pay raises, annual increases in healthcare costs by reducing staff levels, or foregoing necessary procurements. You can't do more with less. You can only do less with less. So I won't go into the numbers here, but you have got OSHA built-in cost last year, $17,000,000. MSHA, $9,000,000. Wage and Hour, $6,000,000. OFCCP, about $5,000,000. Total $40,000,000, and yet the cumulative increase for these five agencies last year was negative $1,000,000. How does the funding freeze affect your agencies, and how it is affecting the ability to protect low-income workers? Secretary Perez. Well, it affects safety. I mean, OSHA, in the best of days, I think would take over 100 years to visit every employer in America. So we have got to be strategic about it. When we have less resources, we have more potential for danger, and that not only hurts workers, but it hurts employers who play by the rules. Because if you have a speed limit sign that says ``speed limit 40 miles an hour,'' but underneath it, it says ``self- enforcement,'' you are going to end up with a lot of speeders and a lot of accidents. That is why we have done our level best to partner with States, and we do so on misclassification with States--Utah, Texas, Massachusetts. We are doing partnerships with local governments. But the reality is it hurts, and we know that there are low-wage workers who are getting abused, and we do our level best to help, but there is only so much help we can do. There are only so many hours in a day. Ms. DeLauro. Thank you. DOL REGULATORY SCHEDULE I just want to get final assurance to the subcommittee that the administration is finalizing several of these long-awaited rules that protect worker safety and ensure that workers keep their hard-earned money. I would like to know if we will see finalized rules in the near future for the following three regulations--silica, fiduciary rule, and you mentioned overtime pay, which was you said went to OMB yesterday. Secretary Perez. Thank you. Ms. DeLauro. Final, are we---- Secretary Perez. Oh, yes. We are moving forward---- Ms. DeLauro. The fiduciary rule? Secretary Perez. The conflict of interest rule was sent to OMB. Ms. DeLauro. It went to OMB? Secretary Perez. Over a month ago. Overtime was sent yesterday. The UI one was sent yesterday. Ms. DeLauro. Silica? Secretary Perez. Silica was sent in December, I believe. Ms. DeLauro. Okay. Secretary Perez. They are all under review at OMB. Then there was an NPRM on the regulation to implement the executive order on paid leave---- Ms. DeLauro. Paid leave. Secretary Perez [continuing]. That went over to OMB I want to say 2, 3 weeks ago. Ms. DeLauro. Okay. Mr. Secretary, many thanks. Mr. Cole. Mr. Secretary, I am glad you know that you drive the GW Parkway on a regular basis as well. So---- [Laughter.] Mr. Cole [continuing]. With that, I go to my good friend Mr. Harris for what is probably the last question of the hearing. OSHA RULEMAKING Mr. Harris. Thank you very much. Just to follow up on the gentleman from Pennsylvania with regards to the retail facilities language in the omnibus, you know, it also had other directives--for OSHA to establish new classification code for retailers, carry out all notice and comment rulemaking procedures, which I would--I don't know if that is--you know, maybe in a QFR, you will--you can respond as to where that stands. The other thing, just from a chemical point of view, you bring up west Texas. But you know, all ammonia--I am sorry, ammonia and ammonium is not the same. You know, it is anhydrous ammonia in west Texas, highly dangerous. And yet the new retail rule is going to deal with the sale of ammonium nitrate, which is a fertilizer, which again is my concern because of a rural area. But let me just follow up with the silica, a question about the silica. And this should be a pretty straightforward one, I think--I hope--for you to answer is that the new silica rule is going to set up where the employers have 180 days to test for exposure and to determine how they are going to comply with the rule. And obviously, that new rule is going to result in thousands and hundreds of thousands of samples having to be sent to reference labs to determine silica levels. But OSHA is going to give the labs 2 years to be in compliance with the lab improvement requirement. So you have got the labs, which have 2 years to kind of demonstrate that they can actually do this, and yet the employers have only 180 days to actually do this and implement the changes. So if an employer--if a lab does not--is not OSHA certified its compliance with the lab improvement requirements, is OSHA still going to use those lab results from the noncertified compliant lab in order to enforce employer regulations? I mean, if you get the disconnect? I mean, employers have 180 days, but they are going to use labs that may not be compliant for 2 years. Secretary Perez. Well, you are referring to issues that were in the NPRM, the proposed rule. We had a very lengthy process, and now we are--we have been in the process of reviewing all the rules and issuing a final rule. So I can't comment on the specifics. But what I can say is when we publish a final rule, we will be happy to explain how we resolved that and any other issue that you might have. Mr. Harris. See, I knew you could hit that one out of the ballpark. Thank you very much, Mr. Secretary. [Laughter.] Mr. Cole. The gentlelady from Connecticut asked for an additional question. So she is recognized to pose it. Ms. DeLauro. It really isn't an additional question, but I just wanted to say with regard to silica, which has a devastating effect on workers' health, as we know--classified as a carcinogen--Department of Labor has been trying to address the dangers for 80 years. In 1937, Secretary of Labor Frances Perkins announced the findings of a report linking silicosis to workplace exposure. 1938, Frances Perkins held a national silicosis conference and initiated a campaign to ``stop silicosis,'' stating, and I quote, ``Our job is one of applying techniques and principles to every known silica dust hazard in American industry. We know the methods of control. Let us put them into practice.'' Mr. Secretary, thank you, thank you, thank you for this effort and helping to make a difference in the health and safety of American workers. Secretary Perez. We have the grainy video of---- Ms. DeLauro. I want it. Secretary Perez [continuing]. Frances Perkins, by the way. She wears hip hats, just like Congresswoman DeLauro. [Laughter.] Secretary Perez. I don't know if she was called a hipster back then, but---- CLOSING STATEMENTS Mr. Cole. Mr. Secretary, this won't be our last opportunity to work with you, but it is probably your last appearance before this committee in a formal setting. So I just want to take the opportunity to publicly thank you. You have always been responsive to our questions. And even when we have disagreed on issues, you have always been agreeable and professional in arguing your case and the administration's case. And I just appreciate the years of public service, both before you arrived here and in this capacity and look forward to working with you for the remainder of your tenure. Secretary Perez. Me, too. It is a privilege to be with you. In a town where all too frequently, we lose sight of things like civility, you are a remarkable example of how to get things done and get things done in a manner that is respectful and really moves the ball forward. So it is always a privilege. Mr. Cole. You are very kind. So we are now adding a trip to Oklahoma to your travel. [Laughter.] Mr. Cole. With that, we are adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] W I T N E S S E S ---------- Page Burwell, Hon. Sylvia............................................. 6 Enomoto, Kana.................................................... 225 Perez, Hon. Thomas E............................................. 300 Spencer, Wendy................................................... 188 [all]