[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS FOR 2018 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION ___________ SUBCOMMITTEE ON COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES JOHN ABNEY CULBERSON, Texas, Chairman HAROLD ROGERS, Kentucky JOSE E. SERRANO, New York ROBERT B. ADERHOLT, Alabama DEREK KILMER, Washington JOHN R. CARTER, Texas MATT CARTWRIGHT, Pennsylvania MARTHA ROBY, Alabama GRACE MENG, New York STEVEN M. PALAZZO, Mississippi EVAN H. JENKINS, West Virginia NOTE: Under committee rules, Mr. Frelinghuysen, 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. John Martens, Jeff Ashford, Leslie Albright, Colin Samples, Aschley Schiller, and Taylor Kelly Subcommittee Staff ___________ PART 6 Page U.S. Census Bureau and the Government Accountability Office......................................... 1 Department of Justice.......................................... 73 Federal Bureau of Investigation................................ 185 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ___________ U.S. GOVERNMENT PUBLISHING OFFICE 27-526 WASHINGTON: 2017 COMMITTEE ON APPROPRIATIONS ---------- RODNEY P. FRELINGHUYSEN, New Jersey, Chairman HAROLD ROGERS, Kentucky \1\ 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 JOHN R. CARTER, Texas DAVID E. PRICE, North Carolina KEN CALVERT, California LUCILLE ROYBAL-ALLARD, California TOM COLE, Oklahoma SANFORD D. BISHOP, Jr., Georgia MARIO DIAZ-BALART, Florida BARBARA LEE, California CHARLES W. DENT, Pennsylvania BETTY McCOLLUM, Minnesota TOM GRAVES, Georgia TIM RYAN, Ohio KEVIN YODER, Kansas C. A. DUTCH RUPPERSBERGER, Maryland STEVE WOMACK, Arkansas DEBBIE WASSERMAN SCHULTZ, Florida JEFF FORTENBERRY, Nebraska HENRY CUELLAR, Texas THOMAS J. ROONEY, Florida CHELLIE PINGREE, Maine CHARLES J. FLEISCHMANN, Tennessee MIKE QUIGLEY, Illinois JAIME HERRERA BEUTLER, Washington DEREK KILMER, Washington DAVID P. JOYCE, Ohio MATT CARTWRIGHT, Pennsylvania DAVID G. VALADAO, California GRACE MENG, New York ANDY HARRIS, Maryland MARK POCAN, Wisconsin MARTHA ROBY, Alabama KATHERINE M. CLARK, Massachusetts MARK E. AMODEI, Nevada PETE AGUILAR, California CHRIS STEWART, Utah DAVID YOUNG, Iowa EVAN H. JENKINS, West Virginia STEVEN M. PALAZZO, Mississippi DAN NEWHOUSE, Washington JOHN R. MOOLENAAR, Michigan SCOTT TAYLOR, Virginia ---------- \1\ Chairman Emeritus Nancy Fox, Clerk and Staff Director (ii) COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS FOR 2018 ---------- Wednesday, May 3, 2017. OVERSIGHT OF THE 2020 CENSUS WITNESSES HON. JOHN H. THOMPSON, DIRECTOR, U.S. CENSUS BUREAU KEVIN SMITH, CHIEF INFORMATION OFFICER, U.S. CENSUS BUREAU ROBERT GOLDENKOFF, DIRECTOR OF STRATEGIC ISSUES, GOVERNMENT ACCOUNTABILITY OFFICE DAVID POWNER, DIRECTOR OF INFORMATION TECHNOLOGY, GOVERNMENT ACCOUNTABILITY OFFICE Opening Statement--Chairman Culberson Mr. Culberson. The Commerce, Justice, Science Appropriations Subcommittee hearing will come to order. And today we are receiving testimony from the Census Bureau and the Government Accountability Office on preparations for the 2020 Census. From the Census Bureau we have Director John Thompson and Chief Information Officer Kevin Smith. From GAO we have Robert Goldenkoff and David Powner. Gentlemen, welcome to the committee. We thank you very much for your testimony and for your service to the United States. Article I, Section 2 of the Constitution requires the Congress to conduct an actual enumeration of the population every ten years. Ever since the first year it was done by my favorite founding father, Thomas Jefferson, we have met that goal. It hasn't always been under budget. That is a primary source of concern for this subcommittee and a focus of our conversation today. We are responsible as stewards of our constituents' very hard-earned and very scarce tax dollars. We want to make sure that these very precious and hard-earned tax dollars are spent frugally, carefully, and wisely. Today, I hope you will be able to discuss with the committee and convince us that the Census Bureau is working diligently to ensure not only an accurate enumeration but to be sure that it is under budget. Unfortunately, I am told that the department plans to notify the committee that they are already expecting a $309 million cost overrun. And that is just in the IT system. It is just a real source of concern because this seems to happen every ten years. There is a 48 percent increase in cost and we want to hear from you today what happened and why. And what is being done about it to hold people accountable to ensure that this does not happen again. One of our biggest frustrations in government is the inability to hold people accountable for making bad decisions and misspending our very precious and scarce hard-earned tax dollars. It is particularly discouraging to see this happen so early in the process when in 2008 your predecessor came before the committee to ask for a $930 million bailout. GAO has once again, placed the Census on its high risk program list, just as it did for the 2010 Census. I look forward to hearing from GAO about what that means for the cost and schedule of the 2020 Census. I am also concerned that there is a plan to wait until very close to the actual Census to do an end-to-end test. I want to be sure to discuss that as well. That seems very risky and a little nerve-wracking. Also, with all the very sensitive personal data that the Census is collecting, it makes the Census Bureau a prime target for cybercriminals and hostile state actors. And invasions of privacy are very important. I know everyone on this committee believes that privacy is a right to be left alone and our right to privacy is one of our most sacred and important constitutional rights. All of us want to be sure that Americans' personal data collected by the Census is safe. Beyond the 2020 Census, I am very concerned about the American Community Survey. I have had a lot of complaints from constituents about the intrusive nature of the survey. It has over 140 questions on it. I know the world has gotten more complicated than it was in 1790 but that original Census had only six questions. Before we proceed, however, I would like to recognize my good friend Mr. Serrano from New York for any remarks that he would like to make. Mr. Serrano. I want to tell you what an honor and a pleasure it is for me to be back here on this committee where I was ranking member years ago. And it is no secret in Congress that it is my favorite committee. And through some maneuvering and fate, I am back again. I also come back this time with a different little opening statement. I no longer have to make that disclaimer I used to make about having a brother who works at the Census because he has since retired and enjoying the grandchildren and not missing the Census Bureau a lot, but he is watching us on the internet right now. I am pleased to return as ranking member of this subcommittee, Mr. Chairman, at a crucial time for the Census Bureau. Preparations for the 2020 Census are at a critical juncture, and there is a serious need to ensure sufficient funding for the Decennial Census and for the many other surveys and products that the Bureau undertakes. I believe all of us here can agree on the vitally important role that the 2020 Census and the American Community Survey play in producing reliable information on housing, demographics, and socioeconomic conditions in our country. And I believe that it is this committee's job to provide the Bureau with the resources to do its job. Since 1790, I do not think anybody on this committee was around then, a national Census of our population has been conducted every ten years, as required by the U.S. Constitution. With each Census, additional information has been incorporated to help us better understand and address the challenges we face as a nation. Incorrect Census data has serious and lasting implications for our communities. We have an obligation to ensure that the Bureau is able to accurately account for every household and that all of the collected statistical data remains properly secured. The President's skinny budget, as it is called, for Fiscal Year 2018 includes $1.5 billion for the Bureau. My concern is that this funding level falls short of what is needed to help ramp up ongoing preparations for both the 2020 Census and the other important surveys conducted by the Bureau as the requested total is actually $133.6 million below President Obama's request for the previous fiscal year. Normally we would expect to see significant increases in the Bureau's budget at this point in the decade as we get closer to the Census count itself. Underfunding and delays in enactment of the Bureau's budget have already had consequences. For example, last year the Bureau discontinued plans for the 2017 Puerto Rico Census test. The overall funding track for the Bureau is well behind the levels previously appropriated for the 2010 Census. And I am seriously concerned that the Bureau will not be able to match the historic levels of compliance from the 2010 Census. I am aware that the Bureau plans to save money through several innovations, including by implementing an online self- response option. Although the internet self-response survey has a Spanish language option, we must make sure that the field testing of a full Spanish language survey prior to the 2020 Census is in place. It is also important to test non- traditional addresses located in Puerto Rico and on tribal reservations. I am also concerned about the steps needed to reduce the anxiety that generally arises throughout the minority communities during the Census count. These feelings, Mr. Chairman, this is very important, of distrust are at an all- time high as, and I say this with full respect for the office, the new President continues to use anti-immigrant rhetoric. In prior cycles, the Bureau conducted significant media and partnership campaigns to help participants understand the importance of the surveys and the fact that they were kept very confidential. However, if we continue limiting the Bureau's resources we run the risk of facing similar challenges to those of the 1990 Census, which had an extremely high non-response rate. Additionally, migrating from traditional methods of paper survey collections to an internet-based model without robust cybersecurity funding will ultimately put respondents at risk should they opt to use technology. In a world with growing cybersecurity threats, the collection and protection of personal information online should be a priority. We should continue to safeguard individuals using electronic devices and ensure the public's trust that their confidential response data will remain private. That, Mr. Chairman, as an aside, will be one of our greatest challenges and the Bureau's. We want people to step up. We want people to be counted. And in a very difficult immigration atmosphere, we especially want people who are here under our roof to come forward and not be concerned that that is going to impact on something else. We cannot use the Census Bureau to be the tool that goes after undocumented aliens in this country. Thank you, once again, to both the Census Bureau and to GAO for testifying today. I look forward to discussing these important issues with all of you. As I close, Mr. Chairman, I'm going to make my first request of you. And that is, as you know I was born in the American territory of Puerto Rico. And I still cannot understand, notwithstanding, and I say notwithstanding, not ignoring it, how the Constitution is worded, count the people amongst the states. But the Constitution at that time did not envision the fact that there would be people living as American citizens in places other than the states. So if you look at the Census count, you get, say, 350 million Americans. Right? Then you get underneath the numbers for Puerto Rico and some of the other places. And then you don't get a total of the population. Ironically, and I hope no one puts this down as an anti- immigrant statement, but you could live in New York, or in your state, undocumented and you would get counted in the regular population. But you could be an American citizen living in the Virgin Islands or Puerto Rico and not get counted in the regular count. Or your number shows up in the regular count. So let's get together and move it up a couple of lines. Thank you. Mr. Culberson. I really am so glad to have you back, Mr. Serrano, on the subcommittee. I've always enjoyed working with you and I was so pleased to see that you would be returning as our ranking member. We work together very well. Opening Statement--Ranking Member Serrano Mr. Serrano. I appreciate it. This committee, as I tell you, it's one, it doesn't hurt people. It helps. It has some great agencies that we deal with, and if you don't knock the Yankees when they get on a losing streak, we'll get along just fine. Mr. Culberson. This is truly my favorite subcommittee as well. It's the only one I really wanted to serve on. I was reluctantly appointed to the Appropriations Committee. I actually didn't understand what a great committee this was. And I didn't want to do it. My answer was no, initially. Mr. Serrano. You said no originally? You know how these people fought for this? Mr. Culberson. That's how I got in. I said, I'm so brutal. My answer is going to be no on everything, unless it's NASA or the sciences, it's going to be very hard to get me to yes. And Tom Delay said, you're perfect. You're hired. And that's a good way to approach it because we are stewards of our constituents' hard-earned tax dollars. You start out with ``no'' and work your way to ``yes.'' This is one of the most important things we do with the Census. We want to make sure you have the resources you need. Mr. Serrano. And if I may, I would like to introduce Mr. Kilmer and Mr. Cartwright, members of the committee. And I also want to pay great attention to Ms. Meng, a New Yorker, who wanted to get on this committee so much. She reminded me every single day, and we are glad you are here. Mr. Culberson. It is a wonderful subcommittee. One of the principal selling points for me, when I was asked to serve on Appropriations, was I could be here on this subcommittee to help NASA, restore NASA to the glory days of Apollo and as well as the National Science Foundation, and to help our law enforcement officers. It is a great subcommittee and everything we do is pure good. So I am delighted to have you here, gentlemen. And we will start with you, Director Thompson. Thank you very much for your service to the country and we look forward to your testimony. We will enter your statement in its entirety into the record. We welcome a summary of your written testimony. Thank you, sir. Opening Statement--Director Thompson Mr. Thompson. Thank you. Good morning, Chairman Culberson, Ranking Member Serrano, and members of the subcommittee. I appreciate the opportunity to update you on the 2020 Census. I am proud to report that we are on schedule and remain on the critical path to readiness. The 2020 Census will be the most automated, modern, and dynamic Decennial Census in history. The innovations we are implementing will lead to significant cost savings and we have a very robust testing cycle to prove in these innovations. This year we successfully conducted the 2017 Census test. And we are well on our way to the 2018 end-to-end Census test. The 2020 Census has been added to the most recent high risk list from the Government Accountability Office. This is not unusual. The 2000 and 2010 Censuses were also on this list, which reflects the complexity, scale, and importance of conducting a fair and accurate Census. This decade the complexity is heightened as we replace a paper and pencil based design with innovative technologies. We have robust controls in place to mitigate the risks that are inherent in carrying out this constitutionally mandated task. In the final years of the decade, risk management is critical to our operational plan for 2020. As we plan and test the 34 operations and roughly 50 systems that comprise the 2020 Census, we are rigorously managing, monitoring, and mitigating risk. The Census Enterprise Data Collection and Processing Program, or CEDCaP, as we often refer to it, is an agency wide effort to integrate and standardize data collection and processing services and is a critical part of our preparations. Another important aspect is our ongoing work with our colleagues at the GAO and the Office of the Inspector General. I discuss the steps we are taking to mitigate risk in greater detail in my written testimony. The specific areas we are concentrating on include, first, cybersecurity, fraud detection, and ensuring the public's trust. We are actively securing our systems and devices for the 2020 Census and its field tests while ensuring that we prevent fraud and cyber attacks. Second, ensuring systems readiness. We have developed and field tested proof of concept systems and our design is supported by findings from Census tests. Now that we have awarded nearly all of the key contracts for 2020, we are finalizing our system of systems ahead of the 2018 end-to-end Census test. Third, we are refining our field procedures through testing. Fourth, we are managing the integrated master schedule for the 2020 Census and its supporting programs. And lastly, we are documenting and validating our 2020 life cycle cost estimates. As I mention in my written testimony, we have a cost overrun with the CEDCaP program. We regret the substantial underestimation of this program's costs for several years. Last May, after a rigorous analysis, we selected a commercial off the shelf platform integrated with select custom solutions. We decided to adopt proven technology in order to reduce risk. Following this decision, certified cost estimators produced updated program estimates and an independent cost estimate for CEDCaP. The latest cost estimate for CEDCaP is $965 million, which is $309 million higher than the original estimate from 2013. [The information follows:] clarification for the record The Census Bureau would like to clarify the difference in the original life cycle figures cited by Director Thompson and Mr. Powner. The $548 million figure cited by Mr. Powner only covered Fiscal Years 2015 to 2020. The baseline of $656 million was set when the Census Bureau delivered it to House and Senate on May 16, 2017. The differences between the $548 million cited by the Government Accountability Office and the $656 million estimate cited by Director Thompson are not cost growth. The differences are adding FY 2021 ($86.9 million) to the original estimate. Other changes include a $19.1 million increase based on a redistribution of overheads funding centralized, IT, administrative, and other services approved as part of a reprogramming and transfer notification submitted to the House and Senate Appropriations Committees in FY 2016, $0.8 million in inflationary adjustments to base for FY 2017, and $1.5 million in additional funding for the CEDCaP Program Management Office as part of the FY 2017 request. The primary reasons for this disparity are our first estimate was created by subject matter experts rather than certified cost estimators. Secondly, since we had not yet built prototypes in 2013, we underestimated how much work it would take to translate our business rules into detailed technical requirements to deliver a secure, scalable data collections system. And thirdly, we had a schedule disconnect that did not accurately baseline all of our milestones to the 2020 Census integrated master schedule. We are committed to transparency with the Congress and our stakeholders. We will work to address your concerns as CEDCaP continues to mature and evolve. The higher cost estimate reflects how much we have learned over the past four years. We are confident in the latest estimate because it has been independently verified, it employs best practices, and it incorporates detailed requirements. Although we have experienced a cost overrun, the technical implementation of CEDCaP is progressing well. We have successfully deployed solutions for the 2017 Census test that is now underway and we are well positioned for the 2018 end-to- end Census test. There are many challenges ahead but we are confident that with appropriate funding levels we can successfully execute a high quality 2020 Census. 2017 and 2018 are critical years in the Census cycle. The funding we receive will have a great effect on the outcome of the 2020 Census. The 2020 Census remains our top priority and we appreciate, and I emphasize we appreciate the support we have received from the Appropriations Committee. Thank you very much. I thank the committee for your interest in our work and I look forward to discussing the challenges we face and how we are addressing them, and to continue our productive relationship with the GAO in the years ahead. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Culberson. Thank you, Director Thompson. And now to recognize Mr. Goldenkoff. Thank you for your testimony and your written testimony will be entered into the record in its entirety. Opening Statement--Mr. Goldenkoff Mr. Goldenkoff. Well thank you for having us. We really appreciate it. Chairman Culberson, Ranking Member Serrano, members of the subcommittee, GAO is pleased to be here today to discuss the Census Bureau's readiness for the 2010 head count. The single greatest management challenge now facing the Census Bureau is how to conduct a complete and accurate count of the nation's large and diverse population while keeping costs in check. At $12.3 billion, the 2010 Census was the most expensive enumeration in U.S. history and 30 percent higher than the $9.4 billion spent on the 2000 Census in constant 2020 dollars. While some of that cost growth is to be expected given the nation's growing population, the average cost of counting each housing unit has escalated from $16 in 1970 to $92 in 2010, also in constant 2020 dollars. A key driver of the cost growth is that the nation is growing larger, more complex, and more reluctant to participate in the Census. To help control costs while maintaining accuracy, the Bureau will use new procedures and technology for 2020. If they function as planned, the Bureau estimates it can enumerate the nation at a cost of around $88 per housing unit. At the same time, however, these innovations introduce new risks and we have become increasingly concerned about the Bureau's ability to conduct a cost effective head count. And these concerns led us to add the 2020 Census to our high risk list earlier this year, as was previously mentioned. So my remarks this morning will focus on the Bureau's progress in rolling out the new Census taking procedures as well as some challenges that the Bureau has been having in developing reliable cost estimates. I will then turn it over to my colleague, Dave Powner, who will then discuss what the Bureau faces in implementing and securing critical IT systems. The bottom line is that while the Bureau has made considerable progress in redesigning the Census, continued management attention and congressional oversight will be needed in the short time remaining until Census day to ensure the Bureau's preparations stay on track. The new Census-taking operations include greater use of automated data collection methods to improve the efficiency of field operations; use administrative records in place of data collected by enumerators in certain instances; verifying addresses using aerial imagery and other in-office procedures rather than going door to door as was done in prior Decennials; and fourth, allowing households the option of responding to the Census via the internet. While the new methods show promise for controlling costs, they also introduce new risks in part because they include new procedures and technology that have not been used extensively in earlier Decennials, if at all. One of our concerns centers on the high number of non-interviews that occurred during a 2016 test held in Harris County, Texas and in Los Angeles, California. At both locations the Census Bureau experienced a large number of non-interviews, as much as 30 percent of the workload, where either no or insufficient data were collected. Going forward it will be important for the Bureau to identify and address the factors that contributed to the non-interview rate as they could have implications for the cost and accuracy of the final population count. Another risk area is the quality of the Bureau's estimate of the cost of the 2020 Census, which does not conform to GAO's best practices. Quality cost estimates can help an agency manage large, complex activities like the Decennial, as well as help Congress make funding decisions and provide sufficient oversight. However, the Bureau's October 2015 cost estimate only partially met the characteristics of two best practices, and those were being comprehensive and accurate, and minimally met the other two best practices, and those are being well documented and credible. Additionally the Bureau has not published an update to its October 2015 cost estimate, yet several events since then, including changes in system requirements and testing strategy, suggest that the cost of the current design, around $12.5 billion, could be higher than planned. So this concludes my prepared remarks. And I now turn it over to my colleague, Dave, who will discuss the risks facing the IT systems. Mr. Culberson. Thank you very much. Opening Statement--Mr. Powner Mr. Powner. Chairman Culberson, Ranking Member Serrano, and members of the subcommittee, thank you for inviting us to testify on the Bureau's plans to deliver and secure key technologies for the 2020 Census. Utilizing an internet response, mobile devices for enumeration, and cloud solutions are important steps to improve our nation's response rates and secure citizens' data. The Bureau's track record for delivering IT for previous Decennials is not good. Unfortunately we see similar issues with 2020: late starts, schedule pressure, and not enough transparency. This morning I would like to discuss what needs to be done to deliver and secure these technologies for the 2020 Decennial. There are three areas that require congressional attention associated with the technology. They are schedule, security, and cost growth. I would like to expand briefly on each of these. Starting with schedule, the Bureau needs to deliver about 50 systems for the 2020 Decennial. Some are new systems and infrastructure while others are changes to existing systems. Clearly the internet response capability, mobile devices, and the centralized operations component are critical systems. These systems need to be ready between August of this year and early 2018 for a key end-to-end test. We have concerns about the readiness of the systems for the 2018 test, as does the technical integration contractor. Also, decisions still need to be made about key infrastructure, data centers, network and security operations, as well as commercial products including those for the internet self-response. These pending decisions will further compound the schedule issue. We will be tracking these issues and the readiness for all systems. Turning to security, the Bureau needs to continue its diligence in this area since it has been the target of recent cyber attacks. We have ongoing work that will focus on the Bureau minimizing the threat of phishing, securing 400,000 mobile devices, ensuring security of cloud services, and properly configuring all 2020 systems. To ensure that all systems are as secure as possible, the Bureau needs to develop security plans, assess security controls, fix known deficiencies, and have the proper sign off from both the Chief Information Officer and the Head of the Decennial Office to ensure that each system is ready for operations. The Bureau has such a process but we have concerns about whether this process is consistently followed and whether all systems will have the appropriate sign off to ensure that personally identifiable information is protected. We also recently learned that about 50 additional security engineers are coming on board to further support this process. Finally, we have concerns about the cost growth associated with the technologies. The Bureau estimates that it will spend about $2.4 billion on IT. We expect these costs to rise significantly. Specific IT contracts to watch are first of all the CEDCaP contract that Director Thompson talked about, which is already overrun hundreds of millions of dollars. Also another contract is the integration contract that had an original price tag of $900 million, and also the call center contract whose cost is around half a billion. The two previous concerns we discussed regarding schedule pressure and additional security will also add to the IT costs and will ultimately eat into the anticipated $5 billion in cost savings. In conclusion, schedule, security, and IT cost growth are major concerns that we will continue to monitory for the Congress. Mr. Chairman, thank you for holding this hearing and I look forward to your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] 2020 CENSUS COST Mr. Culberson. Thank you, Mr. Powner. We included language in our bill last year and this year fencing some money for the Census until we made sure that the GAO was in the loop. We appreciate your work, Director Thompson, and everyone that works on the Census. We know how important it is. We know how vital it is. But we really, I know I will be working closely with everybody on the subcommittee, we really need to ride herd closely on this. And I want to make sure GAO is looped in. The list of concerns that Mr. Powner just went through is distressing. The 2020 Census looks like it is headed the same direction as the 2010 Census with the terrific cost overruns. It is just not acceptable, particularly in this environment when our taxpayer dollars are so hard-earned and hard to come by. They are really going to be scarce in the 2018 budget cycle. It is going to be a tough year. So what will the total cost of the 2020 Census be, Director? Mr. Thompson. Thank you, Congressman Culberson. At this point we are working very hard on combining the results of our testing over the past four years, looking at what we are going to be doing with the 2017 appropriation we just received. And we are really looking forward to working with the committee on the 2018 appropriation. We are glad we are a priority in the President's budget, we are very, very happy about that. And we are looking forward to that process. As part of that process, we will produce another full cycle estimate of the Census costs this summer. CERTIFIED COST ESTIMATORS Mr. Culberson. Well I heard Mr. Powner say you are not following best practices recommended by GAO and using certified cost estimators, that you had to bring in, and I heard you say you had to bring in certified cost estimators to reevaluate the cost of the CEDCaP system and that resulted in this huge overrun. Mr. Thompson. So we---- Mr. Culberson. Why not just, like autopilot, use certified cost estimators? Is that not what your recommendation is for best practices? Mr. Powner. Yes, we need solid baselines. Mr. Culberson. Yes. Mr. Powner. We need solid baselines so we can measure how we are doing. Mr. Culberson. Exactly. I mean, why are you not following-- -- Mr. Thompson. So---- Mr. Culberson [continuing]. What GAO has recommended just across the board? Mr. Thompson. So we really appreciated the feedback we got from the GAO---- Mr. Culberson. Yeah. Mr. Thompson [continuing]. On 2015. And we have been really, really aggressively moving forward to address their concerns. So we do have a number of certified cost estimators now on staff at the Census Bureau. Mr. Culberson.---- Mr. Powner. We have---- Mr. Culberson. Are you using them? Mr. Powner. Yes. Mr. Culberson. GAO is telling me they are not in place. Did I misunderstand? Mr. Thompson. I don't think the GAO---- Mr. Powner. So---- Mr. Culberson. Make sure I understand. Mr. Powner [continuing]. They brought on board additional security engineers to help with their security processes, where we have the sign off that the systems are secured. Mr. Culberson. Yeah, on the security. But I mean the certified cost estimators, that is what I am asking about. Mr. Thompson. Yeah we---- Mr. Culberson. And the practices GPO recommends. Mr. Goldenkoff. Our understanding is that they have been beefing up their expertise on the cost estimation side. And it is certainly better than it was. This has been a longstanding issue with the Census Bureau, you know, going back to I think 2008 was one of our first reports on the challenges they face in developing life cycle cost estimates. They have made a lot of improvements since then. Mr. Culberson. Good. Mr. Goldenkoff. So by developing, by bringing in more experts, by trying to develop better processes. But there is still a ways to go. And, you know, as we mentioned that it has been, the last estimate was October 2015---- Mr. Culberson. Yeah. Mr. Goldenkoff [continuing]. We have not seen anything since then. And so we cannot say the extent to which they have made progress on our recommendations or if the cost estimates have addressed these, our leading practices better than they have. Mr. Culberson. Okay. Well forgive me for interrupting you, Director Thompson. Please continue. And if you could, answer that critical question---- 2020 CENSUS COST Mr. Thompson. Well no, I mean we---- Mr. Culberson. How much is the 2020 Census likely to cost? Mr. Thompson. Like I said, our best estimate right now is about $2.5 billion for the 2020 Census. That estimate will be refined, as I mentioned, over the summer as we get, maybe I missed the 2.5, I think Robert said 2.5. Mr. Goldenkoff. 12.5. Mr. Thompson. I think 12.5. I'm sorry, not two. Not two. Mr. Goldenkoff. 12.5. Mr. Thompson. I wish it was 2.5. It would be, I'm sorry, I'm sorry, I misspoke. Mr. Culberson. We'd be delighted. You know? Mr. Thompson. Yeah, yeah. I would be, too. I'd be---- Mr. Serrano. He was ready to endorse it---- Mr. Thompson. Yeah, yeah. No, no, no. Mr. Culberson. Sold. Done. Mr. Thompson. I'm sorry, I'm sorry. I'm sorry very much. Thank you. Mr. Culberson. I think your whole staff back there just had a heart attack. COST ESTIMATES DOCUMENTATION Mr. Thompson. Yeah. Yeah. I'm sure they did. But importantly we are working with the GAO on this. One of the things they also mentioned was that we needed to improve our documentation. We have been working very hard on improving our documentation underlying our estimates. And even more importantly, as this next estimate comes out we will be working with the GAO to make sure they understand what is in it independently from us so they can report to you on the quality of that estimate. And we believe, but we have to demonstrate this, that they will find it to be acceptable. Mr. Culberson. That's terrific. I really want you guys working together on this. TRANSPARENCY Mr. Powner. I think one item that is very important is when there are changes in the baseline costs that needs to be disclosed quickly. That is why transparency is very important. As an example, and I do not want to pick on this too much, but the CEDCaP overrun, we did a report on CEDCaP not that long ago. And the CEDCaP, we talk about a $309 million overrun. I think it is 417. Because I had a baseline cost of $545 million that was in a GAO report, and it went to 965. And if my math is right, that is over 400. So again, and that is $100 million. There are larger issues than this $400 million. But the point here is when baseline costs change, you need to know about it and we need to know about it to help in our oversight. Mr. Culberson. Instantly. Mr. Powner. Exactly. Mr. Goldenkoff. Absolutely. And there are other changes to procedures that are taking place, with how they are doing their address canvassing that could have cost implications. Other changes to IT processes. And, you know, so the last estimate was 2015. You know, now here it is coming up in two years later and more. And now there could be these significant cost increases. And it is just we are not sure what is in there and how much of the cost and any cost increases are being accounted for. Mr. Culberson. Director Thompson? What is the cause of that? Because transparency is absolutely essential for GAO and this committee to know what is going on and to be able to step in and help resolve some of these problems before they get out of control. Mr. Thompson. Exactly. Exactly. So we have been, so the reason is is that we have been very, very hard at work looking at what it will take to develop our systems. Part of the process has been was that last year we started a really, really detailed what we call analysis of alternatives on our CEDCaP program. And at that time we were looking at a commercial off the shelf solution versus building in house solutions. Now I will get to why that is important. Because we needed to finish that analysis of alternatives and understand what we were going to be doing before we could start working on what it would take to produce a life cycle cost estimate of that. Now we have done that for the CEDCaP program. We have just finished that. But we had to put in place the processes we were going to use. We also had to bring to bear with the vendor that we selected our requirements that we determined through our testing. Mr. Culberson. Understandable. The question is really about transparency and disclosing immediately. This is news to us. You think the cost overrun is likely to be $417 million? Have you all been able to get access, as much as you would like, to the Census Bureau? I hope you guys are working together. Are you? Mr. Powner. I think we have a very good working relationship. I meet monthly with the CIO and our team has access. I think there are still certain areas like this cost--I don't know what the IT costs are right now. I had a $2.4 billion total. I think the IT costs are going to be more than like $1 billion more than that. If I did simple math. But again, this is where that should be very transparent and hopefully this summer---- Mr. Culberson. Absolutely. That is what I am driving at. Mr. Powner [continuing]. Hopefully this summer the IT costs and the overall, whatever the increase, we are going to, it is likely there are going to be increases. But if we can quickly disclose and manage it effectively, that is really what we want. I think the access to information is better. I think the one thing that we would like to see is just more dashboards. We have 50 systems to get ready. We have 50 systems to secure. We have costs. Those types of things should be transparent---- Mr. Culberson. Absolutely. That is what I am driving at. Mr. Powner [continuing]. Twenty-five systems ready, 25 remaining, how many have the appropriate sign off on security. That dashboard type of reporting should come to you readily. We have to work a little bit to get that information. Mr. Goldenkoff. Yeah, and I would echo that. I think we do have an excellent working relationship. And also, I have been involved with, you know, doing Census issues since 2000. And I think that the relationship, the institutional relationship between GAO and oversight agencies in particular and the Census Bureau has been better than it has ever been. Dave mentioned his meetings with the CIO. We have monthly meetings with the Census Director. So it is a very open process. We do share information. I think one of the issues is, that we would like to see, is better documentation and this is consistent with the transparency. That, you know, it is fine to discuss these things when we have these informal monthly meetings. But it needs to be much more official than that. It needs to be something that we are able to share that we are able to report on, and the documentation just is not there. Mr. Culberson. Yeah. And it sounds like we have some room for improvement here, Director. Mr. Thompson. Well, there is always room for improvement. And I do not want to downplay the importance of having GAO look at what we are doing as an independent entity. And we really do plan on being very, very open this summer in terms of what we have got, what the estimates are, working with GAO, working with your staff. Mr. Culberson. Immediate disclosure and full transparency is absolutely essential. And the cost overruns of this scale are just unacceptable. We have to get this under control. I did not mean to take this much time. Let me pass it to my good friend, Mr. Serrano. UPDATED COST ESTIMATE Mr. Serrano. Thank you, Mr. Chairman. On that last point, you, Director Thompson, are telling us that this summer you will be able to present a clearer picture of where you are, where you are going, and what to expect. Are you folks satisfied that based on past experiences with the Bureau and past conversations, come this summer you will be able to get a better handle? If we were to have another hearing, if you will, in the late, in the early Fall, would you be able to feel more confident that you know what is going on? Mr. Goldenkoff. Well if they deliver on that. And I think this has been the issue. We actually tried looking at the updated cost estimate. We started an engagement back on the Fall when the new estimate was supposed to have been released and then it has been delayed, delayed, delayed. And so we have not been able to take a look at it. And so that has delayed our ability to review it. And that has been problematic. So, yes, if it comes out as planned, actually the Summer, we thought it was coming out in the Spring, if it is delivered, yes. Then we can start our work. But then it is going to take some time for us to look through it. It is a pretty lengthy process to apply our best practices and all the criteria. So you know, I think that, you know, we will see, the deeds will speak louder than words. IMMIGRATION STATUS Mr. Serrano. Director Thompson, I have a lengthy prefacing comment to my question, but I am not going to read it. It is well written, anyway. I do not want staff to think I am not reading it for a reason. One of the biggest concerns that I have, and so many people have in this country, and it should be everybody's concern, is that some groups never get counted accurately. And we get better, but now, and I am trying to be at these hearings, Mr. Chairman, and I mean that sincerely, I am trying to be as balanced as possible even though I do not work with that network. But you know, just being as balanced as possible. But there is a political atmosphere created during the presidential campaign where a lot of folks are afraid to even take their children to the bus stop because they think they are going to get deported. So if they are afraid of that, imagine how they are going to feel about putting information on a paper or a computer for the Census Bureau about their information. So my question to you is are you putting in motion anything to attempt to reassure these folks that they should be counted and nothing has changed from the past? That this is not going to be used to determine immigration status? It has nothing to do with immigration status? Mr. Thompson. Thank you, Congressman Serrano. So I will go back briefly to the 2000 Census, when we started a program where we actually started paying for advertising so we could get our message on when people would see it. And even more importantly we started putting resources into what we call the Partnership Program. And the purpose of this was to enlist partners. We had our people. We enlisted partners, network partners, so that local voices would explain why the Census was important and why the data was confidential and would not be used for any purpose other than the mandated purposes of the Decennial Census. And we saw as a result of that program significant gains in the accuracy of the Census relative to the 1990 Census. That program continued in 2010 and we saw more gains. And so I cannot stress the importance of being able to work at local levels, and we plan to do this. We have already started the program. We plan to do this in 2020 and it is going to be very critical that we have partners that will step up and speak on our behalf. And we will, we would love, you know, we will work with you again to make sure we get a lot of the right people in your district in New York. Because we want to line them up and with you, Congressman Culberson, we will work with all members. And I think we had 270,000 or 290,000 partners in 2010 and we want to try to exceed that goal. But that is how we have to solve that problem. We have to do it locally. And we have to empower people locally to talk about what is right with the Census. Mr. Serrano. Yes. Mr. Chairman, we have to make sure that we create the kind of atmosphere that he is speaking about, that the Director is speaking about. Because--and let me first say I am a Catholic so I am not attacking anyone's church or religion. But the Catholic Church went as far some Censuses ago as to say if you fill out the information we cannot guarantee that it will not be used to hurt you. I mean, that was a devastating comment coming from the Church. But it came out of fear and their feeling that their role was to protect folks, not to turn them over to anyone. So they have an incredible challenge. We all do. Because we want to know who is here. We want to count people. Those other issues we have to deal with them, we will deal with them. I mean, today we are going to take a vote that deals with issues people thought we never were going to deal with. And yet we dealt with them. So it is a challenge, and I want to be part of that and assist in any way. BUDGET DELAYS Very briefly, my last comment, you have had to change some of the plans you had because of delays and budgetary delays and other things. Do you think that those delays will now cost the Census more to be conducted? Or are they just a stumbling block that you can get over? Mr. Thompson. Congressman, some of them will, if we do not adjust for them, would result in increased costs. So for example, one of the things we are doing is we are doing less in-office address canvassing, and that means we are going to have to do more in field address canvassing. So that will be a cost increase. In order not to increase the full cycle costs, we will have to try to find an offset for that. But some of the changes that we have made do have the potential. Mr. Serrano. Thank you, Mr. Chairman. Mr. Culberson. Thank you. Mr. Cartwright. UNDERCOUNT Mr. Cartwright. Thank you, Mr. Chairman. I want to follow up, if I might. I would preface my remarks by mentioning how obviously important this whole business is. I mean, the Census is done, you know, appears very early in our Constitution, in the text. And that is for a good reason. This is how we decide how many members of Congress get allocated to each state. It is how we decide how many members each member of Congress represents. It is how we decide not only that but in terms of federal largesse, where it goes. Things like food stamps, so many other federal programs. They refer to the results of the last Census to decide how much money goes where. So this is a really big deal and it is one where we want to be very careful not to be penny wise and pound foolish. I want to start with you, Director Thompson. In response to my ranking member's question about concern of underreporting, people afraid to answer the questions whether it is because they are afraid of having some cousin deported, or because the Catholic Church scared them, or maybe an even broader concern, they are worried about having their cybersecurity violated. We have to worry about that. And your answer, Director Thompson, was, well, what we did in 2010 was we advertised. We advertised and we used local people to encourage people that it was safe and their information would be safe, and it is a good idea to respond to these questions. And you said it led to significant gains in accuracy of the numbers. Something that we are all interested in here. We saw more gains, and you said it was critical that we have local partners involved in that advertising. ADVERTISING The reason I raise that is that in your written testimony you outline four what I regard to be rather troubling concessions you have decided to make in order to meet the administration's low budget request. I think some of these are penny wise and pound foolish. Your third point, Director Thompson, was the elimination of advertising in the 2018 end- to-end tests that would potentially lead to higher costs later that I worry about associated with in-person followups if people are afraid for the reasons we have discussed and they do not respond to the much more cost efficient methods of reaching out and getting information. Then you have to send people out to follow up and it is much more expensive. But if you do not do the advertising, then it becomes that much more expensive. And because you did not have those significant accuracy gains. Am I correct in that? You do have the elimination of advertising in the 2018 end-to-end test plan? Mr. Thompson. Well, yes and maybe not yes. So we prioritized our activities based on the budget situation we found ourselves in to really focus on making sure that our critical systems would be ready to test in the 2018 end-to-end test. We made a number of decisions. And one of those was we did defer doing an advertising campaign in the 2018 end-to-end test. However, we have awarded a contract for advertising to Y&R, a company, a good company, that actually as an aside happened to work on the 2000 Census. And they are in the process of being on schedule to deliver a research plan and also a strategic plan for how we go about implementing the advertising. We expect to get that sometime this month or this Spring. And that will be a great start to go forward with the advertising for 2020. Mr. Cartwright. Okay. So yes, you are going to eliminate the advertising in the 2018 end-to-end Census test, but the plan is not to eliminate it in the real show? Mr. Thompson. Absolutely no. Mr. Cartwright. Okay. So that the statements you made to my ranking member still hold true, that the advertising helps reassure people that cooperating with the Census is safe and will not hurt them? Mr. Thompson. Right. We have found there are two components to that. One is, you know, advertising, media, different kinds of media that you can reach people. And the other one is getting people, local people, our people to work with local people and organizations to get the word out locally. Mr. Cartwright. And forgive me if I missed it, but then why would you not do that in the 2018 end-to-end test? Would you not want to replicate the same circumstance that you are going to use in the actual Census? Mr. Thompson. So we made a number of really difficult decisions in 2017 and Congressman Serrano mentioned some of them. We had to delay some tests. But again, our focus was on risk mitigation or minimizing risk. And we saw the biggest risk was our systems. We also saw that those were the source of our greatest savings for the 2020 Census. CYBERSECURITY Mr. Cartwright. Another thing I want to raise is something that Mr. Powner brought up, and that is you said security plans need to be developed. And if you are going to advertise to people that it is safe, and your cybersecurity will not be violated, it has to be true. So did you hear his comment when he said security plans need to be developed? And are they? Mr. Thompson. So I would like to turn this over to our CIO, Mr. Kevin Smith, who is responsible. Mr. Cartwright. Certainly. Thank you, Mr. Smith. Mr. Smith. Thank you, Congressman, for the question. So as Mr. Powner said, the security systems are of utmost importance to the Census for public trust as well as public confidence. There is a federal process we go through for authorities to operate, which he has mentioned, that there is a business official which is the Head of Decennial, and me as the technical official, the CIO of the organization. Where we have a third party assess all of the materials provided by the developers of the systems who are supporting the systems to verify and validate that they have done all the due diligence possible to secure the systems. And we go through a regimented process of data collection to ensure we have everything in place to protect the data before it's done. And that official process we share transparently and openly with GAO on these as they go forward. AMERICAN COMMUNITY SURVEY Mr. Cartwright. All right. I appreciate the chairman's indulgence. I have one more question. It's about LGBTQ questioning on the American Community Survey. In response to letters from more than 75 members of Congress asking that questions about sexual orientation and gender identity be included in that survey, Mr. Thompson, you wrote that your review of the matter concluded there was no federal data need to change the planned Census and the survey subjects. Now HHS, HUD, and the Department of Justice have all requested that sexual orientation and gender identity questions be included in future surveys. From many non-Census surveys that have been done we know that LGBT people face higher levels of poverty, particularly older LGBT people. And that LGBT young people are more likely to be homeless. And if we can't see the needs of the LGBT community from the Census results, we cannot design policies to respond to those needs. Mr. Thompson, how did you determine that there was no federal need for this information? Mr. Thompson. Thank you, Congressman. I really appreciate you asking that. And first let me state that what we said was there was not a federal need to have it included on the American Community Survey. We were focused on that alone and did not address any other federal purposes. But the process we go through to put any question or topic on the American Community Survey is very formal, and that is the Census Bureau facilitates what goes on there. We do not determine the policies. We are a statistical agency so we collect, our mission is to collect objective data. But having said that, we work very closely with many other agencies to solicit from them what information they would want to see on the American Community Survey. As doing such, we have a very formal process that we go through with the Office of Management and Budget to work through requirements to determine if something should go on the American Community Survey. When we finished our assessment of those needs, we did not find the supporting information from federal agencies to include that information on the American Community Survey. Mr. Culberson. Thank you, Director. Ms. Meng. LANGUAGES Ms. Meng. Thank you, Mr. Chairman. And thank you, Mr. Ranking Member. I wanted to echo our ranking member's comments about some groups being undercounted and how we always strive to do better. My question specifically relates to my district, which is one of the most diverse districts in the country, but it also relates throughout the country where there are many various communities and groups that have traditionally been undercounted. For example, to reach my constituents you would need field staff with a wide range of language capabilities. So I was curious about the recruitment and the hiring process, and how they take these language needs into account. The second part of that question is specifically about the American Community Survey, which is not currently translated into any Asian languages. It is translated into Spanish. On the ACS, for example, one of the questions is, how well do you speak English? But that question is written in English. And so any respondent or any of our constituents who cannot read English or have limited English proficiency, would have difficulty in even answering this question. What would it take for the Bureau to expand the number of languages translated for the American Community Survey? Mr. Thompson. So let me hit the first part of your question about recruiting. So as part of our Census recruiting process, our goal, and we really focus on this, is to recruit locally. So that we send people into the neighborhoods that are representatives of the neighborhoods, and understand the culture of the neighborhoods, which would include speaking the languages of the neighborhoods and knowing the appropriate times or the appropriate ways to contact people in neighborhoods. So a key focus of our recruiting is to hire people with the right language skills to go into neighborhoods. We also have expanded our language program for the 2020 Census from 2010, for 2020 from 2010. I believe we had two or three languages that you could self-respond in in 2010. Now we have ten at least and we might be able to increase that a little bit. We are doing some more work on that. In terms of the American Community Survey, it is always an issue of balancing the amount of money we have for that survey and the budget is very tight in terms of do we do data collection, do we do translation. But we have heard from a lot of constituents that there is, there are emerging needs for languages. So I would not say no, I would not say yes. But we certainly take communicating with our respondents very seriously. And at a minimum we do send, we do send people in person that do have the language skills to get the job done. ADDRESS CANVASSING Ms. Meng. My second question is I know the GAO study mentions increased use of, for example, verifying addresses by use of aerial imagery. I am specifically concerned about urban areas, for example, or areas with newer developments. There are many types of unconventional housing, let us say, people living in basements or attics, people living in multifamily housing where it looks like it is a single family but it has four doorbells on the front door that you might not be able to see. In some communities you might have a room and there are five to ten people living in there. So what are some ways that we can better analyze those numbers? Mr. Goldenkoff. Is that to---- Ms. Meng. Either. Mr. Goldenkoff. Well I would just like to say, well first, I would be remiss if I did not say I was born in Forest Hills. So I appreciate the enumeration challenges there. But, you know, certainly in an area that is diverse, and you are talking, it is not just about data collection and translation. It is also having familiarity. It really starts with the very front end of the Census when you are building the address list, the master address list. Because that is sort of the control unit for the Census. And so if you are excluded from the address list initially, then it is going to be harder for the Bureau to find you down the line. It does not mean that they will not find you, but it just makes it more difficult. And so that is one of the concerns that we have. It certainly makes sense to go to these in-office procedures, because there are some cost efficiencies there, but what is not clear are, you know, do administrative records about a particular housing and address, records from the Post Office-- for example, aerial imagery--are they sensitive enough to capture those people who are, you know, living in basements or attics or--and that is right now, the big unknown. And, you know, we are waiting on the results of a test that the Census Bureau conducted to see, is it sensitive--are these in-office procedures sensitive enough to capture people living in these unconventional living arrangements. Ms. Meng. Do you have any updates, Mr. Director? Mr. Thompson. So, let me make it clear what we are doing here. Our goal is to find areas that are very, very stable in terms of the housing unit stock and those, we believe, we do not have to canvas. If we have any doubt about the stability, like if something has been built, somebody has moved in, somebody has moved out, any kind of--and that could be from changes in the Post Office addresses or other sources--if we have any doubt, then we will go to canvas it in person. That is our goal. And so right now, what we have been seeing--that is what our estimates are based on, is what we are seeing, in terms of what we predict as stability. As Robert said, we are also, though, doing some work where we are actually sending some people out to look at those units that we think are stable to make sure that, in fact, they are. Ms. Meng. Okay. Thank you. I yield back. Mr. Culberson. Thank you. Thank you, Director. Mr. Kilmer. ADMINISTRATIVE RECORDS Mr. Kilmer. Thanks, Mr. Chairman. Good to be back with you. Mr. Culberson. It is good to have you. Mr. Kilmer. Thanks for being with us. I want to start with a question, Mr. Powner. Congressman Farenthold and I recently introduced a bill called the OPEN Government Data Act, which is focused on making government data more available both, to the public and to federal agencies, to try to drive innovation, to try to drive efficiency within the federal government. I kind of want to get--you know, as you are--you know, obviously, the Bureau, when it collects new data, it also utilizes data that the government already has. And I want to just get a sense from you, to what extent does that ability to access and use datas that other federal agencies are already collecting, reduce costs and drive efficiency within the agency's mission? Mr. Powner. I am going to let Robert take this. Mr. Goldenkoff. Sure. No, it is something that it makes sense; obviously, if the government already has that information on file, why not repurpose it? But, again, just like the new procedures for building the master address list, the question is the limitations of those and there are certain populations that are not always covered by the different administrative records. And so it just misses--you know, what it gets back to is the importance of tests. And all these things are great ideas, and we said in our statement here, they do show promise for significant cost savings, but we need to make sure that going into the census that they are going to function as planned. And so we know that there are some limitations to the administrative records. They do have promise for, for example, determining whether a home is vacant or not. So, in the past, the Census Bureau would send an enumerator out to a household multiple times and if that house was vacant, if you can determine that from postal information, from IRS records, then you can see the potential for the cost savings. What is not known is how well those procedures work in under operational conditions, and so that is why it just comes back to rigorous, rigorous testing. CYBERSECURITY Mr. Kilmer. Okay. I know my colleague, Mr. Cartwright, asked about cybersecurity and, Mr. Smith, I kind of want to just touch on that a little bit more because obviously the threat of cyber attack is significant. And, you know, the federal government has had challenges hiring people with cyber expertise. Are--is the Census Bureau leaning on the private sector, looking at partnerships for trying for address these sorts of problems? And I just want to get a--I just want to double-click on that a little bit more. Mr. Smith. Absolutely, Congressman. I appreciate the question. So, we are actually, in the census, not going about the cybersecurity challenge on our own; we have public and private partnerships. So, we are directly connected with the Department of Homeland Security to help assess what we are doing and test what we are doing and help make recommendations to make it more secure. We are also working with private industry through our contracts, as well as through third parties, we have that test our systems and the security of them. So, as Mr. Powner mentioned earlier as well, some of the staff that is being hired is from the contractor side to ramp-up to get ready to do the security things we need--excuse me--the security things we need for due diligence to make sure that we are prepared. But we engage within the Census Bureau to compliment the skills that are hard to retain in the federal government through contracts. There is definitely a salary difference between private industry and federal government, which we go through those challenges, and part of that is to have the right staff support, with a blend of federal employees and contractors to help you meet the goals and get the right skills in place. Mr. Kilmer. Thanks. AMERICAN COMMUNITY SURVEY I guess, finally, for Mr. Thompson, I won't re-ask the question that Mr. Cartwright did about questions around sexual orientation and gender identity within the American Community Survey, other than to just say, I joined 71 of my colleagues last year in a letter to you asking that those--that that information be included. RURAL AREAS You have heard from a number of my colleagues around--on questions around underrepresentation. And I represent a district; we have 77,000 military veterans, a lot of whom live in rural areas and, you know, their ability to access important federal programs, whether it be education programs or medical programs or what have you, is often tied to the census. And in the past, rural communities have often been undercounted by the census and I just wanted to get a sense from you, sort of the flipside of Ms. Meng's question who, you know, her concern is urban. I understand and appreciate that concern for the cities I represent, but what steps are the Bureau taking to ensure that rural counties are fully counted in the 2020 Census? Mr. Thompson. So, thank you very much. So, we do not use the same procedures for the census everywhere, so depending on the degree to which an area is rural, we will use different techniques--and by ``rural,'' I mean the addressing schemes and the sparseness of it. We will use different techniques tailored to those areas to make sure that we count everyone. Sometimes it involves a procedure called ``update leave'' where we would walk around physically to the areas and leave a questionnaire. In other areas, it is something that we refer to as ``update enumerate,'' where we actually walk around and try to knock on the doors and get people to respond directly. But the idea is that we want to cover the whole country and we want to do it well and we will go back the right number of times to make sure that we get an accurate count. Mr. Kilmer. Thanks, Mr. Chairman. Mr. Culberson. Thank you. CYBERSECURITY I want to follow-up on the cyber question that Mr. Cartwright and Mr. Kilmer mentioned to you, Mr. Smith. You said you consult with third parties to verify the security of your IT products and the websites. What third parties are you referring to? I hope you are talking to the FBI about how to secure your website and make sure that your IT is secure. Mr. Smith. Thank you, Chairman, for the question. So, I am not going to give vendor names that we are working with, but through the process of security, you have---- Mr. Culberson. You have private vendors? Mr. Smith. Yeah, you have private vendors come in and test, try to break in to the systems---- Mr. Culberson. Right. Mr. Smith [continuing]. Test the validity of certain artifacts. So, we have those relationships. I will say within the federal government, I am working very strongly with the Department of Commerce to help us get relationships with these other entities to work with. Right now we are working very tightly with the Department of Homeland Security. We are very open to working with other bureaus, like the FBI, other ones that make sense; we just have to move forward with those relationships. Right now, we are only working with the DHS and the DOC on some of those endeavors and the public's face. Mr. Culberson. We have a lot of faith in the FBI's cyber work; they really do superb work. I would highly recommend that you consult with the FBI. Mr. Smith. Absolutely. Mr. Culberson. I am very concerned because when the website for ObamaCare was rolled out, it melted down almost immediately. You are going to have a whole lot more traffic. Mr. Smith. Oh, yeah. Mr. Culberson. That is a big concern. What steps are you taking to make sure you are not going to have a meltdown? Mr. Smith. Okay. I appreciate the support on the engagement with the FBI and we will go through with that. The steps that we are taking, there is a very strong balance between the performance of a system and the security of the system. And so what we have done is take a very layered approach and we have isolated parts of the system as much as possible, so when someone responds over the internet, we can apply the right security parameters to each one of these layers to not hinder performance. And it is just the way you go through design and architecture to make sure the system is going to be resilient and stay online. So, we are taking the steps to do that, instead of making all of the system in one big space, where if you applied too much security to it, it could bring the system performance down, we are isolating it at the right levels to make sure the benefit is to the end-user responding, as well as the security we have to put in place. Mr. Culberson. Mr. Powner, could you---- Mr. Powner. Yeah, if I could just---- Mr. Culberson. From your perspective, what---- Mr. Powner [continuing]. Make a suggestion here? So, also, when you look at the chief information officers across the federal government, we do have, typically, a federal CIO out of the White House. That is an unfilled spot currently with the current administration, but we have a CIO council that coordinates on these issues. So, for instance, when you look at sharing a best practices in the cyber area, DHS is a good place to start. When you mentioned FBI, those connections through the CIO council and the federal chief information officer is very key, where you can build those types of relationships across agencies to make sure that we are doing the right thing. That hasn't always worked well, but that is what we really need to strive to do so that there is that sharing. Mr. Culberson. Yeah, Homeland Security would be another good one, but in the absence of someone filling that position, I hope you just reach out on your own. Mr. Smith. Absolutely. And I am supporting Mr. Powner's comments, as well, yeah. Mr. Culberson. Could I ask, have you evaluated the security steps that the census has taken to secure the information on their IT systems, on their website, and could you comment? Mr. Powner. So, when you look at the 50 systems that they have, they do have a process that, you know, they sign off that this is secure to test or to operate. But when you do the back--when you step backwards from that signature, you have to have plans. You have to do the appropriate control assessments. And, you know, Mr. Smith mentioned penetration tests; that is very key, especially for public-facing systems, and I know they are doing that. So, for all those systems, what we are looking at GAO, do they have the plans and the appropriate assessments and then is that signoff appropriate, given the risks that are disclosed? There is going to be some holes and issues--we are not looking for perfection--but you want to make sure that, especially--I think there is close to two-thirds of those 50 systems contain PII information, personally identifiable information--you would want to crank up the security control there. Mr. Culberson. Absolutely. Mr. Powner. So, that is where we kind of look at that. It is almost like certain things are more important public- facing--those that have PII--so, we are evaluating that and having a good conversation with his office as well as---- Mr. Culberson. Okay. Good. Keep us posted. It is really important---- Mr. Powner. Yeah. Mr. Culberson [continuing]. To protect the privacy of our constituents'---- Mr. Powner. Absolutely. Mr. Culberson [continuing]. Personal information. ADVERTISING And I think Mr. Cartwright is also correct about the advertising--and my colleague, Mr. Serrano as well--to make sure that you are communicating effectively with the public to know that they can participate, that it is safe, and that it is secure. I understand you are going to be sending out emails as well. Will you be doing emails as well to people? Because if I get an email with an embedded link in it that is asking me to click on a link to go somewhere to do something, that is an instant red flag; I throw it in the trash if I do not know who it is from. Mr. Smith. Thank you for the question. So, as I mentioned before, the communications, there is coming back with a plan of action to move forward. We are also engaging, as I said, with the Department of Homeland Security. And we are in--the CIO office, myself, is in very tight communications with the decennial office to discuss the type of communications we can provide in support of the census, but also in support of the right secure communications. We are going through the evaluation of those steps right now to see which ones make the most sense and which ones do not. But your point is very valid, just emails do offer up an ability for fishing and other things that could happen, where we just have to evaluate what is in the best interests of the census. COST SAVINGS Mr. Culberson. Director Thompson, the Census Bureau has estimated more than five billion in savings for the 2020 Census; do you think those savings will materialize? Mr. Thompson. So, I am very confident in achieving significant savings for the 2020 Census right now. And the reason I am confident in that is if you look at where the cost increases for the census have come, they have come from the complexity for the most part. They have come from the complexity of conducting the operation to collect the information from those that do not self-respond with paper and pencil, and that has become increasingly more difficult. And the only way you can deal with that in a country as diverse as ours and growing diverse, is you have to throw more bodies at it. So, we are on track to automate that operation-- get rid of pencil and paper--and that is going to generate significant cost savings. Mr. Culberson. What level of cost savings? You estimated five billion. Mr. Thompson. Right. Right. Mr. Culberson. I am looking for a number. Mr. Thompson. That is our current estimate right now. That might change over the summer. Mr. Culberson. Okay. Mr. Thompson. But there will be significant--I am confident there will be significant cost savings. Mr. Culberson. That is a good thing. Thank you. I want to ask Mr. Powner and Mr. Goldenkoff to comment on that. How confident are you that they will be able to achieve that five billion in savings? Mr. Goldenkoff. I will--I think we would say it is at risk and it is starting to erode and the extent to which is unknown, but we have started to see some cost increases and one of two things, I think, will happen. Either more money needs to be added to it or, as Director Thompson mentioned, they start doing offsets, looking for cuts elsewhere. And those cuts can prove to be a false economy, because they could lower response rate down the line, particularly, in undercounted populations. So, you know, the specific number at this point is--I cannot say, but it is definitely at risk. Mr. Powner. Yeah, I think it is highly likely that the cost overruns, from a technology point of view, are going to eat into that five billion. I think that is highly likely. I think the question is, this is doable even with tight schedules and securing this and the whole bit. But I think the issue is, at what cost? And, historically, if you look at the previous decennials, there has been a lot of money thrown at this late to bail out late starts, mismanagement, and other things and I think you are potentially heading down that path again. Mr. Culberson. It just cannot happen. We just cannot do that this time. IMPROVING COST ESTIMATION What, Mr. Goldenkoff, steps could the census take to improve its cost-estimation methodology? Mr. Goldenkoff. Well, the--you know, if you look at the-- our criteria, our characteristics, as I mentioned, need to be comprehensive, well-documented, accurate, and credible. And in each one of those areas, I mean we have some specific things that the Bureau can do better. For one thing, for example, in the area of documentation, the Bureau did not show certain calculations. The Census Bureau did not show how sources of information were incorporated in the area of being comprehensive, which just gets at whether or not it is inclusive of all the different costs. You know, some of the things that we saw was it was unclear if the--well, just all the different costs were included in it and it seems now that there are--now we know that there are some things, at least in the estimate, that we looked at, were not included. So, it is basically continuing to follow those leading practices and is also, as Director Thompson mentioned, too, subject-matter experts are important, but you need people, continue to rely on people with cost-estimation expertise---- Mr. Culberson. Absolutely. Mr. Goldenkoff [continuing]. And they take the advice of the subject-matter experts. But at the end of the day, it is the cost estimators that need to weigh in. Mr. Culberson. The census is so important. We want to make sure it is done right and that you stay on budget. Mr. Serrano, I would really like to work with you in working with our authorizers. Congressman Meadows chairs that subcommittee--I am not sure who the ranking member is--but let's work closely with them, share ideas, put our heads together, and see what we can do. I look forward to working with you on that. And I recognize you, Mr. Serrano, for follow-up. Mr. Serrano. Thank you so much. Thank you. RACE AND HISPANIC ORIGIN One of the issues that has been discussed in our community a lot is this whole issue of combining race and Hispanic origin questions into a single question. Some claim people as prominent as the NALEO, the National Association of Latino Elected Officials, claims that it is a--they believe that a ``combined question with a detailed checkbox'' approach holds great promise as a means for producing less nonresponse, and fewer ambiguous and inaccurate responses. On the other hand, there are some folks who think that it may not help in getting a clear picture across the government in terms of who the people are. So, what made you go in that direction? How long has this been discussed, and secondly, is it a set situation? Is it going to happen? Is it being tested? And are you fearful of some of the things that have been put forward and supportive of some of the things--positive--that have been said. Mr. Thompson. Let me first make sure that you know NALEO is on our national advisory committee and they are well- represented; they are there at each meeting and they have been giving us advice on this. So, our work on this started with the 2010 census, when we looked at testing a combined question. Those results proved to be very promising in 2010, but they also had some issues associated with them that were well-documented through our research. So, we have designed a program throughout the decade that culminated with a test in 2015. We called it our ``national content test'' and this test looked at, extensively, at different ways to use the combined question that would ask race and ethnicity in different ways, compared to asking two questions. We have finished that test. We have documented the results. What we found was that an optimum question design would include a question on--a combined question. Because we saw much more detailed reporting and we saw very, very accurate reporting. But, importantly, another milestone has just occurred, and that is--we do not do this unless we have been working with the Office of Management and Budget, who would have to look at the standards on how you collect race and ethnicity--and they just closed a federal register notice on this topic. And a number of comments have been received regarding the combined questionnaire. And we are now into the next steps, where we are going to work with OMB to evaluate the comments and put forward a proposal, based on those comments, for the race and ethnic question for 2020. Mr. Serrano. Are you at liberty of telling us what their concerns are--what they would be? Mr. Thompson. Oh, yeah. No, no, there will be a formal response to the comments that come into the federal registry notice that will be issued. Each comment must be addressed in terms of the deliberations that come about. So, that will be there. I cannot speak for OMB, but I am sure they will want to make the comments that they received as publicly available as possible. Mr. Serrano. Yeah. Please understand I am not suggesting that I oppose this approach, but my question is trying to get at, what was the problem that we are trying to fix by doing it this way? Mr. Thompson. So, one of the issues that we saw was that in previous censuses, if we used the two-question format, which meant asking Hispanic ethnicity first and then asking race and origin, the census has a unique dispensation to ask an other- race category. And we were seeing the other-race category be about, maybe the third-biggest race category, and that was because a number of Hispanic respondents would answer ``other race'' and write in a Hispanic characteristic like ``Latino'' or ``Mexican.'' And then that, you know, does not coincide with the OMB definition of race, so that is some other race, but we would count them as Hispanic from that response. But what we saw was there was some confusion there, and so by going to the combined question, we see that we are eliminating that confusion. We are also, by the way we have designed the combined question, we are getting much more detailed responses across race and ethnicity for almost all the racial categories. Mr. Serrano. So, you would ask: Are you Hispanic? And that would be the end of that issue? Mr. Thompson. Well, there would be more details to it, I mean, are you Hispanic, and then there would be options, you know, Latino, Mexican-American. Mr. Serrano. I understand. BUDGET REQUEST Now, the budget request from the President's so-called ``Skinny Budget'' for fiscal year 2018 includes $1.5 billion for the Census Bureau. This is a very modest increase of only $30 million above the amount in the fiscal year 2017; however, the request is also a full $133-and-a-half million below President Obama's request for the previous year. At this point in the decade, particularly given the very substantial investments and information technology and field infrastructure that will be needed to ensure that the 2020 Census stays on schedule, shouldn't the fiscal 2018 budget of the Census Bureau be much higher than the amount proposed? And that is the question. I mean I know it is a direct contradiction to Mr. Chairman, who wants it to cost less, but my concern is counting everyone, and maybe I am sounding like a Democrat--we will worry about the costs later--you know, ha, ha. That is so important, because as we said before, Mr. Cartwright, you get a good count, you bring dollars into communities throughout the country. Those dollars do not sit in somebody's bank account; those dollars get used by an infrastructure and schools and creating different situations. So, the dollars do not die; they move within the economy. You know, I find that it has been a while, but we find that when we have people who are either still around from the old Administration or people who have situations where they have a certain amount of time to stay, it is always very careful how you ask the questions, because nobody wants to upset the President; that is not a good person to upset, but anyway--or the Chairman for that matter. That is why I think he is the greatest Chairman in the House. Any comments on the budget that you are free to make? Mr. Thompson. Sure. Mr. Serrano. Well, you are free to make whatever---- Mr. Thompson. No, no, no. So, I think it was--we thought it was very, very important at the Census Bureau, that in that 60- page base--or so, blueprint, that the 2020 Census was mentioned as a priority. I think that may have been one of the few domestic programs that was mentioned as a priority. We were ecstatic that that was the case, because it demonstrates the Administration's commitment to a fair and accurate 2020 Census. Secretary Ross has also made it very clear that one of his top priorities is a fair and accurate 2020 Census. So, we are really enthusiastic. But the next step will be--I am not going to get ahead of the President's budget, you know, coming before the committee, but after the President's budget comes before the committee, we would be delighted to work with the committee on what we are going to do within the scope of that budget and discuss with you exactly what will happen. So, we are really looking forward to that. U.S. TERRITORIES Mr. Serrano. Okay. One last question, Mr. Chairman. I don't know, Mr. Thompson, if you yourself were involved in this or if you remember when I asked that question years ago of why the territories' populations were not included in the final number for the United States. You know, I have relatives in Puerto Rico who do not get counted in the final number. I get counted in the final number. If I move back to Puerto Rico tomorrow, I do not get counted in the final number. And I remember that part of the argument was by some people that it was not constitutional. To your knowledge, is that still the argument, that it is not constitutional or is it a matter of we haven't done it that way, so we are not going to change it? Mr. Thompson. I would have to research whether it is constitutional or not. I do know that has been a concern that you have expressed. It was expressed back, even in 2000, and I cannot remember what the resolution--I remember what the resolution was in 2000. Mr. Serrano. Yeah, they did not get counted in the total population. Mr. Thompson. Right. I would say, though, that there is still time, as we move towards 2020 tabulations to discuss that issue. I mean we haven't finalized the set of tabulations exactly yet, so that could be discussed. But, again, that would--I would really have to look at what are the issues associated with that. I do not--I am not prepared to say if it is constitutional. Mr. Serrano. And I know--and by the way, I know you have issues that could be considered, could be by many people, much larger than the one I bring up, but, you know, we talk about accuracy. And, Mr. Chairman, when we put forth the population of the United States as such, that is not true, because we are not counting the Virgin Islands and the Northern Mariana Islands and so on. And if Congress has seen fit to--without a vote, unfortunately--but seen fit to have a representative from those territories vote in committee and so on, then why cannot the census, you know, reflect that population and those Americans that live in those territories? Mr. Culberson. The Constitution says that it shall take place; it is required by law enacted by Congress, so it is up to us to decide. Mr. Serrano. Right. And I know and see the--I know the tricky part here could be that it says you must count the people amongst the states and they are not states---- Mr. Culberson. Uh-huh. Mr. Serrano [continuing]. But it did not say that they were going to be American citizens. Mr. Culberson. Uh-huh. Mr. Serrano. They did not envision American citizens living in anything other than states and now they live in territories. Mr. Culberson. Right. Right. I would imagine it is a pretty broad band of authority to Congress to define those kind of questions. Mr. Serrano. Let's do it. Count my cousin. Thank you, Mr. Chairman. Mr. Culberson. Thank you, Mr. Serrano. Mr. Cartwright. Mr. Cartwright. Thank you, Mr. Chairman. And I want to thank you, Mr. Chairman, for holding this hearing. This is so important in terms of accuracy and cost-effectiveness. Mr. Culberson. Yeah, I hope each one of us will take the time to go and visit with the authorizing subcommittee and compare notes on what they have learned and figure out what we can do together to enhance the accuracy of this census. Mr. Cartwright. Now, Mr. Chairman, you have used a phrase over and over about our hard-earned and scarce tax dollars. I like that a lot. Now, you are a fan of Thomas Jefferson. He wrote his own epitaph on his tombstone and I am wondering if you have left instructions for those words to be on yours. You do not have to answer that, Mr. Chairman. But I am in full agreement that our tax dollars are hard- earned and scarce and that is why it is so important that we get a cost-efficient census and an accurate one. UNDERCOUNT And Mr. Smith, this follow-up question is for you. You have successfully identified yourself as the computer geek in the room. I am pleased that the Bureau is seeking to increase efficiencies and decrease costs by taking advantage of technological advances, but I do have a concern that this may disproportionately help certain well-connected communities--I do not mean well-politically connected; I mean well- cyberconnected communities, which could result in a relative undercount of some rural or poorer communities with less internet access or utilization. Mr. Smith, can you address how you will ensure that respondents without the means to access the internet will not be undercounted? Mr. Smith. Well, thank you, Congressman for your question. Part of this is a balance of the technology solutions in place to help automate functions and improve the self-response in certain areas. But, absolutely, from places that do not have a high-interconnectivity rate from the self-response side, we will have to offer different ways from the self-respond. But from the enumeration side, when we have designed---- Mr. Thompson. Can I--let me jump in just a little bit, because I have been working on the design of this. So, we realize that not everyone has access to the internet and so we have been analyzing data, using data from our American Community Survey and some other data to identify areas where we should just mail a questionnaire out to begin with. So, about 80 percent of the households in 2020, we estimate, will just receive a questionnaire right at the start and say, well, if you want to use the internet, you can, but here's a questionnaire, fill it out and send it in. [The information follows:] clarification for the record The Census Bureau would like to clarify Director Thompson's statement about the number of households that will receive a paper questionnaire. In his testimony, he stated that 80 percent of households would receive a questionnaire. The correct figure is 20 percent. Ultimately, every household, if they do not respond, will get a chance to respond on the paper questionnaire. But in addition to that for this census for the first time, we are also offering the opportunity to call in and give your interview over the phone; so that is new for the census. So, we are offering just lots of different ways for individuals to self-respond. GAO RECOMMENDATIONS Mr. Cartwright. Okay. The last question I have is on the steam that the chairman has opened up with. And we want you folks to work together and we want you arm in arm going through this process. I have served on the Oversight and Government Reform Committee for four years and I have seen a lot of the GAO folks and they are helpful. They are not annoying efficiency experts who are coming to count your paperclips; they are there to help you. And one concern I had was the February 2017 GAO high-risk report raises significant concerns about the Bureau's ability to conduct a cost-effective census, primarily because of unsubstantiated cost estimates, new unused innovations, critical IT uncertainties. Over the past three-plus years, GAO has made no fewer than 31 recommendations to help the Bureau create and implement a more efficient and accurate census for 2020, but only five have been implemented as of May 2017. So, Director Thompson, we want to see more cooperation and not less and five out of thirty-one is a lot less than I expect. Will you commit here today to work more closely with GAO? Mr. Culberson. And I wholeheartedly agree and second that. Mr. Thompson. Of course. I mean, we value our relationship with GAO. Let me also say that we have prepared an action plan for each of the recommendations we received and we have a schedule to roll out the result of that action plan and resolve the issues. Some of the issues we are going to resolve as part of the plan for the 2018 end-to-end test. Some other--and I am not trying to dodge the issue--but some of the recommendations are of longer range and they can only be resolved by doing the 2020 Census. But we are working with GAO to make sure that we are in agreement on the schedule for resolving those recommendations and we have the recommendations that we have got. Mr. Cartwright. Thank you. I yield back, Mr. Chairman. Mr. Culberson. Thank you, Mr. Cartwright. Great questions. And we obviously want to make sure that you have the resources you need to do an accurate and fair enumeration of the American population. I want to work closely with all of the Subcommittee to find ways to ensure that you are weaving GAO into your day-to-day operations. That you are being absolutely transparent with us, with the American taxpayers, and with the GAO so we know right away if there is going to be a problem. That is really important and I wholeheartedly second what Mr. Cartwright just said; five out of thirty-one is just not acceptable. Ms. Meng. KOREAN AMERICANS Ms. Meng. Thank you. Director Thompson, I have a specific question regarding Korean Americans in this country. I have a substantial number of Korean-speaking constituents in my district and according to the American Community Survey, 76 percent of those constituents do not speak English very well. With that in mind, I am concerned about the Bureau's ability to accurately capture information from and about this population. I understand that there were almost no Korean responses returned or obtained during the 2016 Census test run. If that is true, how are you measuring the adequacy of your Korean- language preparedness and when can we expect the release of the full results from the 2016 Census test? Mr. Thompson. Let me check. So, we are--we plan to offer for this census, self-response options in Korean, both internet and paper responses, to assist in their enumeration. We--in the 2016 test, we did get Korean responses, but they came in on the English forms, as opposed to the Korean forms---- [The information follows:] clarification for the record The Census Bureau would like to clarify Director Thompson's statement about 2020 Census self-response options. In his testimony, he stated the 2020 Census will offer self-response options in Korean, both internet and paper responses. The 2020 Census does not plan to offer a Korean self-response paper option. Ms. Meng. Yes. Mr. Thompson [continuing]. Which means that where we tested, possibly were in areas--even though we tried to get a diverse population where people did have the ability to speak English. Ms. Meng. Okay. Thank you. I yield back. Mr. Culberson. I will submit the remainder of my questions in writing. And Mr. Serrano. Mr. Serrano. I will do the same. Mr. Culberson. All right. Very good. I want to truly thank each and every one of you and your staff for your service to the country and I look forward to working closely with you to ensure that there is a fair, accurate census and that you achieve all those savings you have identified and perhaps even more. Thank you very much and the hearing is adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Tuesday, June 13, 2017. DEPARTMENT OF JUSTICE WITNESS ROD J. ROSENSTEIN, DEPUTY ATTORNEY GENERAL Mr. Culberson. The Commerce, Justice, Science Appropriations Subcommittee will come to order. Deputy Attorney General Rosenstein, it is a pleasure to welcome you today to your first appearance before the committee as we consider the President's 2018 budget request for the Department of Justice. We appreciate you being here, and we especially appreciate your service to the country. We are particularly indebted to all of our Federal, State, and local law enforcement officers and honor them for their tireless, invaluable, and courageous service to keep the people of the United States safe and sound in our communities and our country. Last month, we observed National Police Week. The lowering of American flags to halfstaff on Police Officer Memorial Day was a vivid reminder of the sacrifice and the risks undertaken every single day by our men and women in uniform in the law enforcement community who put themselves at risk to keep us all safe. Our committee is arm in arm in our determination to do everything in our power to support our men and women in uniform, to ensure that they are protected, that they have everything that they need to help them succeed in their vital mission of protecting American lives and property. Deputy Attorney General Rosenstein brings to his position a distinguished record of public service within the Department, including most recently as the U.S. Attorney for Maryland. I admire the energy that you and Attorney General Sessions are bringing to the Department and encouraged to see your leadership in addressing such critical issues as immigration enforcement, border security, restoring respect for the rule of law above all, because we all know our liberty lies in law enforcement, in the work that you do in fighting terrorism, in taking a reinvigorated and strategic approach to combating violent crime and targeting offenders, and in supporting our State and local law enforcement officers. In fiscal year 2018, Mr. Rosenstein, this subcommittee will strive to provide the Department of Justice the resources that you need to support your Federal law enforcement mission, including combating cybercrime, terrorism, espionage, gangs, and human and drug trafficking. Of course, we expect that our constituents' very precious and hard-earned tax dollars will be employed frugally and strategically, consistent with Federal law. Their needs are great, and it is critical to set priorities and leverage scarce resources. I look forward to working with the Department throughout the year as the appropriation process moves forward. Today, we will follow the 5-minute rule in order to keep the hearing moving along. But before we proceed, I would like to recognize our ranking member, the gentleman from New York, Mr. Serrano, for any remarks he would like to make. Mr. Serrano. Thank you, Mr. Chairman. Although I join you in welcoming Deputy Attorney General Rosenstein before the subcommittee, it is important that we point out that this is not who should be testifying before us today. No insult intended, sir, in any way. I am angered that Attorney General Sessions has refused to come before this subcommittee to answer urgent and important questions about this administration's actions with regard to Russia. The American people that care are asking for transparency and accountability, and we find ourselves in yet another circumstance where a senior administration official is refusing to provide it. There are serious questions that need answering about Russia's interference in last year's election, as well as that Nation's possible collusion with senior members of the campaign and this administration, including Attorney General Sessions. In addition, there are a compounding series of questions about whether senior administration officials, including the President, have attempted to obstruct this investigation and cover up these possible activities. These are not questions that are confined to the Intelligence Committee. They belong to the American people. I believe that this committee has a responsibility to help to get to the bottom of this. One would think that if the Attorney General were totally blameless for this debacle, he would be happy to testify wherever and whenever invited. I think it speaks volumes that he has once again rejected our invitation. In his letter to the subcommittee, Attorney General Sessions claimed that since he has recused himself from matters related to the Russia investigation, he could not answer the subcommittee's questions regarding that subject. However, because the American public is not aware of the scope of his recusal, we are left wondering why he was involved in important decisions that touch upon this investigation, including the firing of FBI Director James Comey. It is possible that there are future decisions in which common sense would dictate the Attorney General's recusal but where he might still attempt to intrude. We hope that you will be able to clarify the scope of that recusal today. Since you have appointed a special counsel, something I want to commend you for, I do believe there are significant questions regarding the independence of the special counsel's investigation. As an appropriator, it is important that we ensure that Director Mueller receives the funding and resources necessary to do his job fairly and thoroughly. There is some ambiguity in the special counsel's regulations, and we will need to shed some light on this subject. Lastly, before I conclude, let me briefly address the Department's budget request for fiscal year 2018. This request is profoundly troubling. I represent a district composed largely of people of color, people who have been historically discriminated against and marginalized. I represent many immigrants, people who came to this Nation looking for a better life, and I represent people of all faiths, including a significant Muslim population. I am deeply concerned that the Department's budget request does not speak to or respect them. I strongly oppose the so- called deportation agenda contained in this request, including unrelated legislative language to harm sanctuary cities, increased funding to further boost criminal prosecution of undocumented immigrants, and proposals to hire attorneys to take away private citizens' land via eminent domain proceedings. These efforts are misguided and will harm the Department's goals. Fifty-two percent of Federal criminal prosecutions already involve immigration violations. At a certain point, this obsession with undocumented immigrants harms other Department priorities, like terrorism cases, gun violence, and corporate fraud cases. Another area where the Federal Government seems poised to do less is in the area of civil rights. While the funding level for the Civil Rights Division is held flat in this request, civil rights divisions across other agencies are being slashed. These cuts, in tandem with DOJ proposals to undermine programs like body-worn cameras, grants, and the Second Chance Act, indicate that this administration does not value groups who have been historically discriminated against. I oppose these proposed cuts at DOJ and elsewhere. The Department of Justice has historically been a beacon of hope for many Americans. The Department has a proud history of protecting those who have historically been discriminated against. You act as our Nation's agency of accountability, to ensure faithfulness and adherence to our Nation's laws, its Constitution, and its values. Unfortunately, this budget request fails to uphold these principles. Let me conclude with this: As an appropriator, I find it insulting that the leader of an agency that we oversee has refused to testify before us. These hearings are a basic function of our committee, and the Attorney General's actions undermine the committee's oversight role, its power, and its reputation. Should the Attorney General and his staff fail to adhere to our constitutional system's basic checks and balances, I believe we will need to revisit the need to fund the Office of the Attorney General. Thank you, Mr. Chairman. Mr. Culberson. At this time, I would like to recognize the ranking member, the gentlelady from New York, Mrs. Lowey. Mrs. Lowey. I would like to thank Chairman Culberson, Ranking Member Serrano for holding this hearing. Deputy Attorney General Rosenstein, frankly, you are not who I was expecting to see today. Ranking Member Serrano and I are disappointed that Attorney General Sessions canceled on us for the second time. The Attorney General's refusal to testify before this committee does not bode well for transparency, openness, and good government from the Department of Justice. This is an unprecedented moment in our history. Every day we are flooded with news alerts, each more disturbing than the last. Ranking Member Serrano and I are very concerned by a pattern of behavior from your Department. First, there are reports that just days before FBI Director Comey was fired, he requested additional funds from the Department of Justice to investigate Russian interference in the Presidential election. After this request, you penned a letter to the President, which the White House has referenced as a basis to fire Director Comey. We now know that Director Comey asked Attorney General Sessions not to be left alone with the President, and yet President Trump, after asking Attorney General Sessions to leave the room, asked Director Comey to drop the investigation into Michael Flynn. I remain unconvinced that the Department of Justice and this administration can impartially handle the investigation. While the appointment of former FBI Director Robert Mueller as special counsel is a strong step, your Department has the power to remove him, and the White House is reportedly taking steps already to undermine his investigation. Congress must still create a bipartisan, independent commission to make sure every aspect of contacts between President Trump, his campaign and associates, and Russia is thoroughly analyzed. Mr. Rosenstein, I cannot overemphasize the serious nature of your responsibilities as one of the top law enforcement officials in the country or the expectations of this committee that you expend the funds we appropriate to ensure the rule of law. Aside from the ongoing Russia investigation, I am concerned the budget proposed for your Department would make our communities less safe. For instance, it would reduce the processing of rape kit backlogs by $20 million, cut $15 million from the National Instant Criminal Background Check System, eliminate funding for body-worn police cameras. President Trump's budget request slashing $54 billion from nondefense investments would decimate the Department of Justice. In fact, even existing sequestration level caps are insufficient and would lead to reduced services that American families and communities need, including law enforcement, first responders, homeland security. It is, frankly, time for a new budget deal to end sequestration once and for all, in part, to prevent disastrous cuts to law enforcement efforts at the Department of Justice. I look forward to a productive discussion today, and hope that you can shed some light on how this budget request can adequately respond to the grave task the Department of Justice and its grant programs undertake on a daily basis. Thank you. And thank you, Mr. Chairman. Mr. Culberson. Thank you, Mrs. Lowey. We will follow a 5-minute--each one of us will take 5 minutes on our questions, and I will recognize members in the order in which they arrived. Deputy Attorney General Rosenstein, you are recognized for an opening statement and, without objection, your written statement will be entered into the record in its entirety. I would encourage you to keep your oral statement to 5 minutes so we can have additional time for questions. And it is my pleasure to recognize you, sir, for your testimony today. Thank you. Mr. Rosenstein. Thank you. And good afternoon, Chairman Culberson, Ranking Member Serrano, and other members of the subcommittee. I am honored to present the President's proposed fiscal year 2018 budget for the Department of Justice. Our proposed budget advances the interests of the American people by allowing the dedicated men and women of our Department to continue their outstanding work. We are grateful for your strong support, and we look forward to building on our successes as we work to protect our Nation, to promote the rule of law, and to ensure equal justice for everyone. The 2018 budget request shows a strong commitment to the Department's top priorities. It provides more funding to fight terrorism and cybercrime, reduce violent crime, tackle the opioid epidemic, and combat illegal immigration. It also gives us resources to support our State, local, and Tribal law enforcement partners in their essential work. This budget request reflects three important themes: Number one, truth in budgeting; number two, increased efficiency; and number three, setting of priorities. These changes are critical and support the executive order to reorganize government agencies to increase efficiency and effectiveness. First, the budget is honest. It eliminates from the books thousands of previously funded and vacant positions, most of which have been vacant for years and, in some cases, never filled at all. Second, the budget seeks to identify areas where we can afford to cut back without harming our mission. And finally, the budget improves the allocation of our precious resources so that we can do the most effective work with every taxpayer dollar that we spend. National security remains our highest priority. We face a wide array of evolving threats, from terrorism to espionage and cyber intrusions. We also need to come to terms with the going dark phenomenon, which, as you are aware, refers to law enforcement's increasing inability to lawfully access, collect, and intercept real-time communications and stored data, even with a warrant, as a result of changes in technology. This phenomenon severely impacts our ability to conduct investigations and bring criminals to justice. Law enforcement officers operate within the Constitution and they respect privacy interests, but when there is a legitimate law enforcement need to access electronic information and we have a court order or other lawful authority, public safety is jeopardized if we are unable to access relevant information. Our Department must keep adapting to new challenges. To that end, the budget provides an extra $98.5 million to combat terrorism, espionage, and cybersecurity threats. The Justice Department also is committed to protecting the American people from violent crime and from the adverse consequences of illegal drug distribution, both of which are spiking at alarming rates. Violent crime is rising in many areas of our Nation, and drug- related injuries and deaths also are increasing. Rising violent crime and increasing drug abuse are devastating many American families. The Justice Department is confronting these crises head-on, and we need your help. The proposed budget provides the Department's law enforcement agencies with extra support so they can target the worst violent criminals, transnational crime organizations, gangs, and drug trafficking rings. It also provides for 230 new assistant U.S. attorneys to focus specifically on our effort to fight violent crime. These additional resources will enhance the ability of Federal law enforcement to assist our State and local partners to fight crime and keep communities safe. We are focusing on getting illegal drugs off the streets through strong enforcement and through our drug take-back programs. In addition, we are calling on doctors, pharmacists, and pharmaceutical companies to take a hard look at the way that they prescribe opioid drugs, in an effort to reduce the harmful abuse that occurs when those drugs are overprescribed. The American people expect our government also to secure our borders and restore a lawful system of immigration. The proposed budget provides funding for 75 more immigration judges and support teams to reduce the unacceptable backlogs in our immigration courts. It also will allow us to hire more deputy U.S. marshals and 30 more border enforcement prosecutors so we can effectively apprehend and prosecute criminal aliens who threaten our communities. The Federal Government does not maintain public safety alone. 85 percent of law enforcement officers in this country are not Federal. They work for our State, local, and Tribal partners, and we rely on them heavily. The men and women serving on the front lines are our first line of defense to keep our communities safe. They deserve our support. This budget maintains our commitments to those valued partners and prioritizes grant funding to the high-performing programs that have proven to be effective. This budget funds our priorities while helping to achieve a more efficient and cost-effective Department. We will do all we can to be good stewards of taxpayer dollars. We have a duty to avoid waste and to safeguard the Department's resources so they will be available to fight crime and protect people. The Department of Justice is home to 115,000 honorable men and women who work to serve, protect, and defend the American people, and respect the Constitution of the United States. And Ranking Member Serrano, I appreciated your comments about how you feel about the Department of Justice. I feel the same way. That is why I have worked there for 27 years. This budget will make it possible for us to do our jobs. With the investment set forth in this budget and with your support, we will continue to fairly enforce the Nation's laws and ensure safety and equal justice for all Americans. And I look forward to addressing your concerns. I am eager to work with this subcommittee and with the Congress in the months and years ahead. I will be happy to answer any questions about our proposed budget. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] SANCTUARY CITIES Mr. Culberson. Thank you very much, Mr. Rosenstein. This morning, I participated in a hearing in the Homeland Security Subcommittee, and the Acting Director of Immigration and Customs Enforcement, Thomas Homan, testified something that we all know fundamentally as Americans, and that is, where there is no consequence to breaking the law, we endanger law enforcement officers, we endanger the public. And we all know that our liberty lies in law enforcement, equal protection of the law with due process to everyone. I want to focus my, therefore, first round of questions on sanctuary cities and the danger they pose to all of us. Secretary Homan--or Director Homan testified quite correctly that sanctuary cities are a danger to law enforcement and to the public, because if he has to send an ICE officer out to knock on someone's door because ICE cannot get access to their jails and pick someone up for deportation that has been arrested and held in custody by a State or local jail, that endangers the public and endangers law enforcement, because these individuals are going to be out on the street. Last year, last summer, I successfully worked with Attorney General Lynch to ensure that local and State law enforcement agencies complied with Title 8, section 1373 of the U.S. Code, which says that local and State law enforcement agencies cannot interfere in any way with sharing information with Federal immigration authorities about individuals in their custody. This followed a finding by the Department of Justice Inspector General that 10 of the largest Federal law enforcement grant recipients were not in compliance with 1373 and, therefore, were sanctuary cities. This includes the entire State of California was certified as a sanctuary jurisdiction. New York City was certified as a sanctuary jurisdiction. So was Philadelphia, Cook County, Miami-Dade, Milwaukee, and Clark County, Nevada. I am pleased to say that New Orleans has brought themselves into compliance. They repealed their sanctuary policy. Miami- Dade County repealed their sanctuary policy. But I wanted to ask you, Mr. Attorney General, these remaining jurisdictions have to certify this year that they are in compliance with Federal law and cooperating 100 percent of the time in order to continue to receive Federal law enforcement grants this summer. Those assurances from those remaining eight jurisdictions are now due. And if you could, tell us what is the status of those assurances from those eight jurisdictions? Have they changed their policies or stopped receiving Federal funds yet? And if they have not changed their policy, when will their Federal law enforcement grant funding stop? Mr. Rosenstein. Yes, Mr. Chairman, I think it is important to recognize this is not a partisan political issue. In the prior administration, the Inspector General brought to the Department's attention that these 10 jurisdictions may not have been in compliance with Title 8, section 1373, and the Department took appropriate steps to look into that. We have notified those 10 jurisdictions that we are requesting that they certify whether they are or are not in compliance. My understanding is that we have actually heard back from three so far that have confirmed that they are in compliance with section 1373. There are seven that have not yet responded. And we have requested that everybody respond by June 30, so I am hopeful that we will hear from the other seven jurisdictions by June 30. Our goal is to ensure that all grant recipients are following Federal law. This is not a new law. This is a law that was in effect last year. Our goal is to make sure that they are in compliance, because that is a condition of Federal grants that they be in compliance with Federal law. And so I am optimistic, Congressman, that they will all respond. If they do not, then the consequence would be that they would not be eligible for future grants, unless and until they can certify that they are in compliance with Federal law. Mr. Culberson. This is very straightforward. If local and State law enforcement agencies expect to receive Federal money, if you want Federal money, you have to follow Federal law and cooperate with requests for immigration information about people in your custody and do so 100 percent of the time. That is the effect of 1373? Mr. Rosenstein. It is not a new requirement to follow Federal law. It is something that was brought to our attention last year, that some jurisdictions might not be in compliance with that requirement. Mr. Culberson. Well, I was pleased to spearhead this effort and did so quietly. In fact, when Kate Steinle was murdered in San Francisco, I just made this my highest priority. And I am pleased that Attorney General Lynch changed the policy, and I am very pleased that you are implementing this policy. The goal is for all these jurisdictions to change their policy so they will cooperate with Federal law enforcement authorities in order to protect lives and property. We don't want anybody to lose their funding, but if they choose--it is up to them. The local jurisdictions have a choice. If they choose to protect criminal illegal aliens and shield them from deportation, then don't ask for Federal money, because the funding will stop. And it stops this summer, doesn't it? Mr. Rosenstein. They will no longer be eligible, unless they are able to certify compliance. SPECIAL COUNSEL Mr. Culberson. New York City would lose about $15 million, based on what they received last year. Philadelphia will lose about $1.7 million. The State of California will lose $69 million, based on what they received in 2016. So the days of receiving Federal money and shielding criminal aliens are over. You can't have both. And we appreciate very much you following through on that policy. And I want to recognize Mr. Serrano. Mr. Serrano. Thank you. Deputy Attorney General, I am concerned that the special counsel you appointed--and, once again, I compliment you for that--to investigate ties between the Trump administration and Russia will not be adequately funded. Politics and budget debate should not impede their work. Can you provide this committee a copy of the budget request made by the special counsel? Mr. Rosenstein. Congressman, I don't believe we have it yet. Under the regulation, the special counsel I believe has 60 days to submit his first budget. I know they have been working with our Justice Management Division. The leadership of the division is here with me today, and I don't believe we have those numbers for you yet. But I do want to assure you, and if I may, to respond to Congresswoman Lowey's inquiry, it has always been my commitment that this investigation and every investigation, the Department will receive the resources that it deserves. And I welcome the opportunity, Congresswoman, to address the issue that you raised, because the newspaper in my hometown ran a banner headline that said that somebody had asked me for resources and not gotten them, and that is untrue. And I believe the deputy FBI director clarified that. I don't know where that story originated. But I can assure you that I have not and I will not deprive this investigation of appropriate resources. So, yes, Congressman, I can assure you that the special counsel will have whatever resources are reasonably required to conduct that investigation. That is a matter that is handled primarily by our budget, our administrative folks, and I am confident he will have the resources he needs. Mr. Serrano. And you can get that to us at some time? Mr. Rosenstein. As I said, I am not certain that he submitted the budget yet, but when he does---- Mr. Serrano. When it is ready. Mr. Rosenstein. Yes, sir. [The information follows:] The Special Counsel Office (SCO) will prepare a Statement of Expenditures for the six-month periods ending September 30 and March 31. The Justice Management Division (JMD), Internal Review and Evaluation Office will review and report on the internal controls related to the expenses of the SCO. JMD will make these reports available to the public. Mr. Serrano. Does Attorney General Sessions' recusal from the special counsel's investigation extend to the management of the budget for the special counsel? Mr. Rosenstein. I would say probably, yes. I mean, our budget is not a secret. But I will be making the decisions. If there is any dispute, I would be the final authority as to what resources are given to the special counsel. ATTORNEY GENERAL RECUSAL Mr. Serrano. For that matter, what is the current scope of Attorney General Sessions' recusal? Mr. Rosenstein. Congressman, the recusal, as I understand it--and keep in mind I was confirmed in late April. This had already been put into place prior to that. And so there were appropriate safeguards in place within the Department to ensure that the Attorney General would not be involved in any matters from which he was appropriately recused. Just to explain you the way this operates. In the Deputy Attorney General's Office, we have career officials, and one in particular who is responsible for making these ethical determinations for the leadership of the Department. And so if any matters arise that may implicate that recusal, I have the opportunity to consult with him and ensure that those matters stop in my office, literally on the fourth floor, and they don't rise to the fifth floor, which is where the Attorney General's office is located. And so as to what the scope of the recusal is, it is defined by what he has recused from. But keep in mind, the important issue here, Congressman, is when we recuse in the Department, it is usually not public. Usually, our recusals are private and internal. And we don't announce who we are investigating or what we are investigating. Therefore, I am not able to tell you I know what is being investigated. The Attorney General only knows the general area from which he is recused. And so it is my responsibility, in coordination with our ethics experts, to make sure that nothing comes to his attention that would be within the scope of that recusal. Mr. Serrano. What is the mechanism to update that recusal as the investigation by the special counsel evolves, if there is a need for an update? Mr. Rosenstein. I don't think there will be a need for an update, Congressman, because he is recused. I am the Acting Attorney General for purposes of the special counsel investigation. And what that means is, he is just not involved in any way in the special counsel's investigation. So there wouldn't be a need to update that. That is a full recusal from any matters handled by the special counsel. Mr. Serrano. And you are saying that you will be keeping a close eye on that anyway. Mr. Rosenstein. Well, I---- Mr. Serrano. On the investigation. I am not putting you in trouble with the Attorney General. Mr. Rosenstein. No, it is the other way around, actually. I just wanted to clarify. Director Mueller has independence, and so I am not particularly involved in that. But it is my job, to the extent there was anything that came to my attention, to make sure that the buck stops with me and that the Attorney General would not be involved in any decision-making. Mr. Serrano. All right. Thank you, sir. Thank you, Mr. Chairman. Mr. Culberson. Thank you, Mr. Serrano. It is my pleasure to recognize former chairman of the full committee, the gentleman from Kentucky, Mr. Rogers. Mr. Rogers. Thank you, Mr. Chairman. General Rosenstein--is it Rosenstein? Mr. Rosenstein. Yes, sir. FEDERAL PRISON CONSTRUCTION Mr. Rogers. Thank you for being here. We are glad to see you. We were expecting the Attorney General, but he has been called to testify, as we speak, before a Senate Intelligence Committee and, therefore, could not be here on that account. But thank you for filling in those shoes. Let me start out by asking you about Federal prison construction. We have a serious overcrowding problem in our Federal penitentiaries affecting the health and safety of not only prisoners but the guards and the personnel. GAO reports that BOP facilities experience 30 percent overcrowding systemwide, 52 percent overcrowding among high-security penitentiaries. With that in mind, this committee and the Congress passed, last year, a bill appropriating funds for a new penitentiary in Letcher County, Kentucky--therefore, it is of a little bit of parochial concern of mine--to help alleviate the crowding. In your budget request, you specifically rescind the money for that facility. What I want to know is, are you serious? Mr. Rosenstein. Thank you, Congressman. My understanding-- first of all, I think I should be clear. The Federal prison population, I am sure you are aware, has actually declined precipitously over the last several years. It is a decline of about 30,000 inmates or 14 percent reduction over the past 4 years. So the decision about where we need Federal prisons is a decision, you know, that we rely upon the Bureau of Prisons to tell us what sort of facilities they need. And our fiscal year 2018 budget does include $80 million to fully open a prison that has already been built that had not previously been in operation that would add up to 2,500 high-security beds. So what we are doing, Congressman, is we are just prioritizing our spending, given the tight budget. But we would certainly be open to working with the committee on capacity issues in the future, if there were a need for additional bed space. And I have met with Director Kane, our acting director of Bureau of Prisons, and I will continue to talk with him about that. And based upon our projections of future prison needs, we may well have a need for a prison in that district or elsewhere in the future. But, again, the tough budget choice that we made here is that, given the current volume of inmates in the prison and given the projections for the future, the Bureau of Prisons just didn't feel that we needed that facility at this time. Mr. Rogers. General, the Congress decided this. And it is the Congress that controls the purse strings of the country. It has been passed. It is the law. The money is there, appropriated, authorized, everything in order. We recognize there is a problem. We have got terrific overcrowding. Yes, we have made some reductions in recent years, but not enough. But this has been decided and we expect it to be carried out. OPIOIDS/OPIOID EPIDEMIC Now, let me ask you about opioids. This problem broke open in my district about 12, 13 years ago. Oxycontin. Now, of course, it is ravaging the country, among other types of opioids. The Comprehensive Addiction and Recovery Act, which we passed last year, streamlined your grant process for several crucial efforts, including prescription drug monitoring programs, drug courts, first responder training and the like. And the 2017 Omnibus, which was signed into law just a month ago, fully funds our $103 million commitment to your efforts in that regard. I understand applications for that funding closed last month. Tell us how this newly combined program is being received in its first year. Mr. Rosenstein. Congressman, if I could just address first the issue of the funding in this budget. Obviously, there are difficult choices that need to be made about how much money to allocate to each issue, but I agree with you that with regard to the programs that you have mentioned, they all are valuable in the fight against opioid drugs. If I can just take a moment to address that, because I think there are a lot of important issues that we will talk about today. This, I believe, is one of the most important. And in my capacity as a U.S. Attorney in Maryland and now as Deputy Attorney General, I think I have a special responsibility to address this issue of opioid abuse, because it is frightening the extent to which opioid abuse is causing havoc throughout our country. I actually brought with me one demonstrative exhibit, if I could show you. It is a chart of drug overdose deaths throughout the United States of America. And what this reflects is that in 2015, 52,000 Americans lost their lives to drug overdose deaths. In 2016, although the numbers are not yet final, we anticipate that, based on projections, there may well be 60,000 deaths that are attributed to drug overdoses. And those numbers are increasing dramatically, and a large proportion of it is due to this issue of opioid drugs. And it is, as you said, partly a function of oxycodone; it is partly a function of heroin; and increasingly, it is a drug called fentanyl, which is being brought into the country from China, either through the mail or through Mexico, and it is causing tremendous distress throughout the country. And so we are going to work with you in a variety of ways-- and I know I am out of time--but a variety of ways. Enforcement is one. Treatment and prevention also are important. And I believe we need to use all available tools to address that problem. And we can certainly discuss, you know, the relative allocation of resources, but what I can commit to you is that in terms of the overall financial commitment by the Department to this issue of opioid drug abuse, we are going to have--if this budget is enacted, we are going to have more money this year, we are going to have more of everything focused on this issue, because it is a horrifying trend and we need to work together to reverse it. Thank you very much. Mr. Rogers. Thank you. Mr. Culberson. Thank you, Mr. Rosenstein. Just to emphasize how urgently important our fight is against the opioid epidemic to stop the loss of life, there were 58,220 U.S. military fatalities in the Vietnam war. So the number of people that have died as a result of opioid overdoses has already exceeded last year alone the total number of people killed in the Vietnam war. What a tragedy. Mr. Rosenstein. If I could clarify the chart, it may be a little misleading on the chart that I showed you. That is all drug overdoses, but it is I believe about 60 percent of these deaths are attributed to opioid drugs. Mr. Culberson. Thank you for your work in that regard. I want to recognize the gentlelady from New York, Mrs. Lowey. FBI DIRECTOR FIRING Mrs. Lowey. Thank you. And thank you, Mr. Rosenstein, for being before us today. On May 9th, you, along with Attorney General Sessions, wrote to the President supporting the dismissal of then-FBI Director Comey. The rationale for his dismissal was his handling of the Clinton email case. President Trump later admitted on national television that he fired Director Comey because of, quote, ``this Russia thing,'' end quote. To what extent, beyond your written recommendation, did you consult with the White House on the dismissal of Director Comey? Mr. Rosenstein. So, Congresswoman, as you know, this may well be within the scope of the special counsel's investigation, so I am limited in what I can say about it. But I would, if I could, I would like to address your question about me and my memo. I think it is important for you to understand, I don't know what was in anybody else's mind. My memo reflected my personal opinion. And I stand by what I wrote in my memo, but that is just my opinion. I know that I have heard various reports, and I don't believe everything I read in the media, but I have heard various reports about what role my recommendation allegedly played. But also, I saw the President of the United States in an interview on TV, and he said he was going to replace Director Comey without regard to the memo. And so the decisionmaker on this is the President. The President decides which political appointees to retain and which to remove, and that is his decision. So I can only comment from my perspective that the memo reflected my views, and I can't testify about what anybody else's opinion might have been, nor do I know what was on anybody's mind. So I can assure you that if Director Mueller believes that that is relevant to his investigation, he has full authority to investigate that and to make any appropriate findings. Mrs. Lowey. Now, did anyone ask you to write the memo? Mr. Rosenstein. As I said, Congresswoman, I am not at liberty to talk about that now. And the reason for that is that if it is within the scope of Director Mueller's investigation-- and I have been a prosecutor for 27 years--we don't want people talking publicly about the subjects of ongoing investigations. If there are other witnesses or subjects, we don't want them hearing what other people may have said about it. And so that is the reason why I am not at liberty to talk about it here. I have no reservations about my role, and I hope I will have the opportunity at an appropriate time to talk more freely about it. But given my responsibilities with regard to this investigation, I hope you appreciate it is important for me, in my capacity, not to compromise the investigation by talking about any of these things publicly. Mrs. Lowey. Just somewhat related, at any point do you get the impression that the FBI was, quote, ``in disarray,'' end quote, as the President claimed? Mr. Rosenstein. Congresswoman, everybody can reach their own independent subjective evaluation about anything they like. In my impression--I have worked with the FBI for many years. I have the utmost respect for the agents in the FBI. I know many of the agents and the supervisors personally. And I believe we can count on the FBI under the current leadership and under the future leadership to do an excellent job in defending the American people. Mrs. Lowey. Was there any discussion with the President after that comment was made? I would think it is pretty unfortunate that it was made. Do you want to comment on that? Mr. Rosenstein. I prefer not to, but I have not discussed it. I have not talked with the President about that after the comment was made. Mrs. Lowey. Okay. My time is almost up. But on May 11, Ranking Member Serrano and I wrote a letter to Attorney General Sessions, you were copied as well, with several questions regarding the firing of FBI Director Comey and his request for additional resources. We have not received a response, so I would like to clarify your policy on this issue generally. What is the policy at the Department with regard to responses to congressional inquiries? Mr. Rosenstein. So, first, if I may, I would welcome the opportunity to tell you that I have never rejected a request for resources for the Russia investigation or for any investigation, and I would not have done that, because it is important to me that that investigation be done properly. With regard to the policy concerning letters, I am aware of an opinion that was issued from the Department on the question of whether or not there was any obligation to respond to letters. And my recollection is that there is a reference in that letter, it may be in the final paragraph, that there is no prohibition on it. And so my hope is that we can be as forthcoming as reasonably possible. I know you appreciate that there are limits sometimes on what we can say and how quickly we can respond, based on the volume of correspondence, but I think it is important for us to provide as much cooperation as we can to you so you can do your important job in overseeing the Department. Mrs. Lowey. Thank you. Thank you, Mr. Chairman. Mr. Culberson. Mr. Jenkins. OPIOD EPIDEMIC Mr. Jenkins. Thank you, Mr. Chairman. Thank you so much for being here today. I want to talk a little bit about the opioid crisis. I appreciate your comments about it. I appreciate the chairman and the full committee's immediate past chairman about this critical issue. So many causes, so many lives lost, so many lives destroyed. In my district, we are literally ground zero, the Third Congressional District in West Virginia. DEA records that were really exposed as a result of an Eric Eyre article that was published, an investigatory report showed that over a 6- year period, wholesale distribution of pain pills to my State, 780 million pills, a population of 1.8 million people, 433 pills for every man, woman, and child in West Virginia, over a 6-year period, from 2007 to 2012. In the small town of Kermit, West Virginia, in Mingo County, a population of 392 people, 9 million hydrocodone pills were sent and dispensed out of one pharmacy in a town of 392 people. Mingo County, the fourth highest prescription overdose rate of any county in the entire country. There was a very compelling article. This article was from The Washington Post. This article documented a period of former DEA agents and others who said, really beginning around 2011-- they called it shocking, stunning--a change of approach at the highest levels of the Department of Justice, basically slowing down and stopping many of the enforcement tools, the investigations, the prosecutions that the DOJ and the DEA and others were pursuing. My question is, as a result of this story from last year, The Washington Post, 2016, not unnamed sources but specific agents, former agents of the DEA talking about the administrative actions and directives that put a halt to the powerful tools that the DOJ has in its arsenal, has anybody looked into these allegations to explain why the DOJ and other agencies within its purview made these very dramatic changes, in light of this epidemic? Mr. Rosenstein. Congressman, I do not know the specific answer to your question as to whether anybody has looked into it. You know, I have been in this position about 6 weeks, but I can tell you that one of my top priorities is to figure out what we can do differently. And whether anybody was at fault for past decisions is not my primary concern. My primary concern is what can we do prospectively and cooperatively and collaboratively, in a bipartisan way, to address this problem. So that has been my focus. And I have met a couple of times with DEA Administrator Chuck Rosenberg, and I know it is a priority for him, and he understands it is a priority for me as well. As you point out, you know, Federal enforcement isn't just about criminal enforcement of drug dealers; it is also about regulating the prescription of regulated drugs. So I appreciate your raising that point with me. I will look into it. But what I can tell you today is that we are all going to be working together to try to develop a strategy that is more effective in the future than what we have unfortunately experienced in the recent past. DEA QUOTA SYSTEM Mr. Jenkins. I sent a letter to the director about 4 or 5 weeks ago, just as you referenced, doing a better job from a regulatory standpoint. My letter specifically asked for information relating to the quota system. You cannot manufacture a pill without the Federal authorities authorizing the chemical components and elements that go into that manufacturing to occur. And I have not got a response to what I think is another missed opportunity, flaw in the system--and in this particular case, it is the quota system--why the bells and whistles did not sound in such an alarming situation. And I am hoping to get a response to my request for information relating to the quota system. Mr. Rosenstein. Well, I will look into that, Congressman. I appreciate you are familiar with some of the details about how this operates. As you mentioned, there is an aggregate production quota that is set for Schedule I and II controlled substances each year, and there is an annual assessment of needs, and I am familiar with that generally. And I will take a look at that. I have not seen your letter, but I will make sure to review that and talk with Administrator Rosenberg to make sure we are doing everything we can. I am well aware of the issue in West Virginia. I spoke with your two Senators this morning. And, in fact, the Attorney General, I know, was visiting West Virginia just last month. We recognize how serious the problem is there, and we are going to make it a priority to figure out how to reverse the problem. [The information follows:] DEA appreciates your interest in production quotas and shares your concerns regarding the opioid epidemic. DEA contacted your [Representative Jenkins'] staff in late June to discuss an initial response and to set up a briefing on the quota process. DEA looks forward to briefing you and your [Representative Jenkins'] staff soon to address the questions in your letter. Mr. Culberson. Thank you, Mr. Rosenstein. I want to recognize the gentleman from Washington State. OLC OPINION Mr. Kilmer. Thank you, Chairman. Thanks for being with us. I want to start where our Ranking Member Mrs. Lowey ended, and that is on the issue of access to information. Earlier this month, Senators Grassley and Feinstein sent the President a letter expressing concern over the administration's policy to not respond to Members of Congress in the minority party. And Senator Grassley noted in his letter that--and this is a quote--``Unless Congress explicitly tells the executive branch to withhold information based on committee membership or leadership position, there is no legal or constitutional basis for the executive branch to do so. For OLC to so fundamentally misunderstand and misstate such a simple fact exposes its shocking lack of professionalism and objectivity.'' So my question to you is, as Deputy Attorney General, did you have any role in crafting the OLC's policy to not respond to oversight requests from Members in the minority? Mr. Rosenstein. I think it is important, Congressman, to recognize that OLC, my understanding of it--and I will have to go back and take a look at it. I don't have it with me. I will see if any of my staffers do. But what I believe it is is a legal judgment about whether or not there is any obligation to respond. And that is, as I say, a separate matter from whether or not it is appropriate to respond in any individual case. There are some things we are not supposed to be talking about publicly or revealing to Congress. But within the rules, when we receive a proper request, if we can answer it, I believe that letter says we do have discretion to answer it, and, as I say, with the caveat I don't have it in front of me. And I will review it, if you like, and I can get back to you after the hearing specifically. But my recollection is that it addressed the issue of whether or not there is an obligation, whether or not a letter from an individual Congressman represents an oversight request. That was my understanding of the issue. Mr. Kilmer. So just to clarify, to your knowledge, has the Department of Justice or the administration directed any agency not to respond to an inquiry from Members of Congress? Mr. Rosenstein. I do not know the answer to that. Nobody has directed me not to respond to any particular request. But, as I said, I can look into it and get back to you. [The information follows:] The Department respects the Congress' responsibility to provide effective oversight of the Agencies and Departments within the Executive Branch and the need to safeguard taxpayer monies. The Office of Legal Counsel's letter opinion did not direct anyone not to respond to an inquiry from members of Congress. Instead, it specifically acknowledged that agencies may respond to requests from individual members. We are aware of the Chairman's letter and I expect that the White House will respond. Please be assured of our commitment to working with the Congress, both majority and minority parties, to provide the information it needs will continue. VOTING RIGHTS Mr. Kilmer. Let me shift gears. I want to ask about voting rights. In 2013, in Shelby County v. Holder, the Supreme Court essentially struck down section 5 of the Voting Rights Act, which required jurisdictions with a documented history and an ongoing record of race discrimination in voting to preclear any voting changes with either the Department of Justice or a three-judge Federal Court before their implementation. Following the Shelby decision, previously covered jurisdictions implemented changes to their voting laws which made it burdensome for millions of people around this country to participate in the process. Earlier this year, I led an effort with 70 of my colleagues in a letter to President Trump urging that any investigation that he conducts into alleged voter fraud also include an investigation of voter suppression. We never received a response to that letter. And just over a month ago, the President announced his Advisory Commission on Election Integrity, which intends to only investigate these nonsubstantiated allegations of widespread voter fraud. So my question to you is, in light of the President's newly formed commission, how do you plan to allocate Department resources to enforce the Voting Rights Act and combat the proliferation of voter suppression laws in Shelby County? Mr. Rosenstein. Congressman, it is my understanding that the commission you are referring to is not within the Department of Justice. And what I would like to do is reassure you, within the Department of Justice, we have responsibility for protecting the voting rights of all Americans, and we will. When voting rights and our election system are strengthened, our democracy is strengthened. So the Department of Justice continues to carefully investigate and review any claims of voter suppression or violation of the Voting Rights Act. And we will take appropriate actions to prevent and combat any such violations or voter suppression in all of its forms. The issue that you raised at the start of your question is a more complicated issue of how to respond when States implement what they view as appropriate ways to protect the integrity of the vote. And in some cases, those are challenged as to what the impact may be, and that litigation will play out. But that is a separate issue from the Department's commitment and responsibility to enforce violations of law with regard to people's voting rights. And so, as I say, we don't have a role, that I know of, with regard to the President's election integrity task force, but we do have a responsibility to protect people's rights to vote and will continue to do that. Mr. Kilmer. I want to, if I could, Chairman, ask one more question. Am I all right? Mr. Culberson. Thirty seconds. MARIJUANA Mr. Kilmer. Washington State where I am from recently legalized marijuana. And in 2013, the former Deputy AG issued a memo, James Cole issued a memo, that laid out eight Federal enforcement priorities with respect to Cannabis. It was recently announced that Attorney General Sessions formed a task force to review the Department's Cannabis enforcement policies. In recent years, Congress's appropriation bills have reflected the Cole memo. Do you have any update on what the Department plans to do? Does it plan to update or rescind the Cole memo? Mr. Rosenstein. I do not have any update, Congressman. I can tell you--and I don't want to take too much time to do it, but, as you know, it is a very complicated issue for us. Under Federal law, as passed by the Congress and given the science concerning marijuana, it is a Schedule I controlled substance, so it is illegal under Federal law. That is a decision I have talked with Administrator Rosenberg about, and I am comfortable that that is the right legal and scientific answer, that it is illegal under Federal law. We have a situation where some States have taken a different approach and legalized or decriminalized marijuana for medical use, in some cases for recreational use. I am a parent of two teenagers, and for those of you who have been through that stage, you know how difficult these issues can be. So I have to deal with this issue, as many of our friends and colleagues do. The question, though, of whether it is illegal under Federal law is resolved because Congress has passed a law, and it is illegal and scientists have found that there is no accepted medical use for it. So Deputy Attorney General Cole, as you mentioned, adopted this memorandum. He made an effort to examine that issue and find a way forward for the Department where we could continue with our obligation to enforce Federal law and minimize the intrusion on States that were attempting to follow a different path. I was a U.S. attorney in the Obama administration operating under the Cole memorandum. And I know many of my colleagues who were in your State and other States that have decriminalized marijuana to some extent, they had to deal with that issue. They had to grapple with the consequences. And we are going to have to deal with that as well. So for the moment, that Cole memo remains our policy. There may be an opportunity to review it in the future. At the moment, I am not aware of any proposal to change it, but I think we are all going to have to deal with that in the future. Mr. Kilmer. Thank you. I yield back. Mr. Culberson. Thank you. Mr. Aderholt. Mr. Aderholt. Thank you. Thank you, General, for being here. I want to switch gears a little bit. PLANNED PARENTHOOD Mr. Aderholt. Thank you. Thank you, General, for being here. I want to switch gears a little bit. The House Select Panel on Infant Lives, has forwarded 15 regulation and criminal referrals to DOJ regarding blatant violations of Federal statutes by Planned Parenthood and affiliated organizations. Has the Department of Justice begun any follow-up investigation or taken any action regarding this? Mr. Rosenstein. Congressman, I do not know the answer to that. I am not certain whether I could tell you if I did. But I do not know the answer to that, but I will look into it. And if we can respond to you, I will. [The information follows:] The Select Investigative Panel of the House of Representatives Committee on Energy and Commerce (the Panel) has urged the Department of Justice (the Department) to take action on information it previously provided regarding several matters. We understand that the Panel also provided information about many other matters to other federal, state and local regulatory, civil, and criminal enforcement agencies. The Department's components with the relevant investigative and prosecutorial responsibilities are aware of the information provided by the Panel. However, consistent with established Department policy, the Department cannot confirm or deny, or comment upon, matters which may or may not be currently under investigation by the Department. Mr. Aderholt. Next question, Russia, but also other countries, would like to influence our national elections and it has been reported that Russian hackers infiltrated data systems such as campaign Web sites, and maybe even county voter rolls during the 2016 election. To your knowledge, is there any evidence that hackers infiltrated voting machines or were able to change any votes dating back to November 8th of last year? Mr. Rosenstein. Not that I am aware of, no. Mr. Aderholt. Okay. Thank you very much. I yield back. Mr. Culberson. Thank you, Mr. Aderholt. I recognize Mr. Cartwright. SPECIAL COUNSEL Mr. Cartwright. Thank you, Mr. Chairman, and thank you Mr. Rosenstein for being here today, I understand you testified in the Senate this morning so I must say your voice is holding up well. Mr. Rosenstein, on May 17, you appointed Robert Mueller as special counsel to investigate the matters that Mr. Comey had been investigating. And your order speaks for itself. You have known Robert Mueller for about 30 years. Is that right? Mr. Rosenstein. I believe that is correct. I wouldn't call him a close friend, but I have known him for about 30 years, yes. Mr. Cartwright. Enough to know him to be a dedicated lawman through and through. Is that a fair statement? Mr. Rosenstein. Absolutely. Mr. Cartwright. Yesterday Christopher Ruddy, who is the friend and confidant of the President, and publisher of Newsmax media said he thinks President Trump is, quote ``Considering perhaps terminating the special counsel. I think he's weighing that option.'' unquote. You may have seen that, Mr. Rosenstein. Did you see that on the news? Mr. Rosenstein. I saw it in the media. Yes, I did. Mr. Cartwright. So now this morning when you were testifying in the Senate in response to a question from Senator Shaheen, now you said have you not seen evidence of good cause for Mr. Mueller to be fired. Am I correct in that? Mr. Rosenstein. Yes, that is correct. Mr. Cartwright. Mr. Rosenstein, you have a sterling reputation in the law, a wonderful career as a prosecutor, a superlative resume. Your immense body of work in the Department of Justice is appreciated, sir. Mr. Rosenstein. Thank you. Mr. Cartwright. And I can tell you are the kind of person who cares deeply about preserving your reputation for integrity. Is that a fair statement? Mr. Rosenstein. Well, I care about integrity. Preserving my reputation is a secondary concern, but I certainly do care about enforcing the rule of law. Mr. Cartwright. Thank you. This is my question, if you receive an order from President Trump to fire the special counsel, Robert Mueller, will you do that or will you follow the example of Elliot Richardson's integrity and refuse on principal to carry out such an order. Mr. Rosenstein. I am in a little bit different position than Elliot Richardson. I am familiar with the decision that he made the history of the Watergate special counsel. I have a Federal regulation and I am going to faithfully enforce that regulation. The regulation provides that a special counsel may be removed only for good cause and so it doesn't matter who gives me an order, what that order is. If there isn't good cause I would not fire the special counsel. Mr. Cartwright. Thank you for that answer. VOTING RIGHTS Mr. Rosenstein, I want to follow up on questioning that my colleagues Mr. Kilmer from Washington State started about voting rights. You are in a peculiar situation in the Department of Justice these days because since the Shelby County decision, it is up to the Department of Justice to go out and prosecute violations of Voting Rights Act. Previous to that, and during I would say the great bulk of your career in the Department of Justice, the preclearance requirement meant that the Department of Justice didn't have to go out and start prosecutions of voting rights, irregularities. Here is what I am leading up to, my question is is there a lack of experience among prosecutors in the Department of Justice to go out and initiate prosecutions and civil actions to investigate and prosecute cases of voter suppression, the kinds of cases that did not have to be brought until the Shelby County decision? Do you understand my question? Mr. Rosenstein. Yes, Congressman. And I can assure you that we have quite a few highly qualified and capable attornies and I am confident we will have the expertise to investigate and if appropriate to prosecute any violations that arise. Mr. Cartwright. And is it your pledge, Mr. Rosenstein, to do that, to uphold the integrity of the American electoral process and to seek out voter suppression wherever it happens in the United States and put a stop to it? Mr. Rosenstein. Congressman, if any case has come to my attention in which there has been a violation of law relating to voting, then yes I would. Mr. Cartwright. Mr. Chairman, I yield back. Mr. Culberson. Thank you, Mr. Cartwright. I recognize Mrs. Roby. HUMAN TRAFFICKING Mrs. Roby. Thank you, Mr. Chairman and thank you for being here today. We appreciate you taking the time to be with us. I want to talk about one criminal enterprise that doesn't necessarily always grab the front page or garner much light in the media, and worth every day conversations, and that is human trafficking and particularly, specifically child sex trafficking. We have to maintain a strong footing in law enforcement to combat, dismantle and remove criminals in that area from online websites, to messaging apps on phones, to international safe haven for this type of behavior, law enforcement agencies must have the tools and need the tools and resources to contest this horrific and unfortunate growing enterprise. We oftentimes think about human trafficking in other parts of the world. But we know that it is right here in our own backyards. So I am interested for you to expand a little bit on the programs that currently exist at DOJ to fight against these types of crimes. What partner agencies and programs do you work with? And how well informed you believe local law enforcement is in these areas? And how do you work in collaboration with them to make sure that they are well informed but also have the appropriate tools in place to combat these just horrible, horrible crimes. Mr. Rosenstein. I have been working on child exploitation cases for about 20 years. The first case I remember personally handling was about 20 years ago as an assistant U.S. attorney in Maryland. And I have continued to do that throughout my tenure as a United States Attorney. That is a very pry high priority for us. And I could talk about it a lot more than 2 minutes and 57 seconds which all I have. But let me tell you that we consider it an extraordinarily high priority for the Department of Justice. And there are many aspects to it, you pointed out. The first thing that we do is we have a commitment of Federal resources. So from the perspective of the Department that includes assistant U.S. attorneys throughout the country. In my home district of Maryland for example, we have both a child exploitation coordinator, in fact we have two offices, two divisions within the U.S. Attorney's Office in Maryland so we had two child exploitation coordinators, plus a separate human trafficking coordinator. We would meet every two weeks to talk about relevant cases within the office and make sure they were all getting appropriate attention. In addition to that, though, we coordinated our efforts with State, local and Federal law enforcement. And so our child exploitation human trafficking coordinators would work with agents of our Federal, State and local agencies. Primarily on the Federal level it is FBI and ICE, Homeland Security, that work on child exploitation and sex trafficking cases, but we also work very closely with our State and local partners because cases often come to their attention first. And so in Maryland, to use that as an example, we have annual seminars where we gather together our partners from throughout all the counties of Maryland to talk about these issues and to make sure that we are using our State and Federal authorities most effectively. And there are many other aspects to this too. For example, there is international sex trafficking. And we have cases where people have been brought to the United States who have been trafficked. And we also have had cases and I had some in Maryland where people left America to abuse children overseas. And that is also a violation of Federal law. So it is a very important challenge and of course the internet makes it all the more difficult, because it allows people to communicate with like minded people and seek out victims from the privacy of their own homes. So it raises a lot of challenges, Congresswoman, and we are have committed to doing that, very committed to addressing those challenges. With regard to the budget in this fiscal year budget we are requesting $89.6 million and 252 positions, which includes $45 million for the victims of trafficking programs grant, within the Office of Justice Programs. We also request nearly $50 million specifically to combat sex tourism. It is a horrible phenomenon of people traveling to places where it is less-- where it is either not illegal or where it is less enforced, prohibitions against child sex abuse. We also maintain financial support and commitment to fund the Adam Walsh Act and there is $62.3 million committed to that. So I can commit to you it is a high priority or me. I have talked with Rachel Brand, our newly confirmed associate attorney general who is responsible for supervising the civil rights division. This is a civil rights issue as well. And we are going to work together do everything we can to combat child sex trafficking. Mrs. Roby. Mr. Chairman, if I might, I have the unique opportunity to not only serve on the Appropriations committee and this subcommittee, but I also served on the Judiciary Committee. So the funding is extremely important to make sure that our law enforcement and others have the tools that we need, these partnerships that you have already talked about. But I have already worked with the Department of Justice, we passed the Global Child Protection Act that did close some very significant loopholes as it relates to sex tourism. So I am committed to working on this issue with you, both on the appropriations side, but also on the policy side as well. So I hope that we can continue to have this conversation. This is a serious, serious matter that is happening in every single one of our districts all across this country and abroad and we need to do all that we can to continue to combat it. Thank you. I yield back. Mr. Culberson. Thank you, Mrs. Roby. I recognize the gentlelady from New York, Ms. Meng. FBI DIRECTOR FIRING Ms. Meng. Thank you Deputy Attorney General Rosenstein for being here. I wanted to ask, you have previously met with then Senator Sessions last winter and discussed Director Comey's handling of the investigation of Secretary Clinton's emails. Is that correct? Mr. Rosenstein. I don't know that I specifically discussed the handling of emails, but we certainly discussed the general concerns about the importance of the FBI maintaining the confidence of the American people, which means maintaining the integrity of Federal investigations. Part of that is not talking about Federal investigations and respecting the policies and traditions of the Department of Justice. Ms. Meng. How many times have you discussed Director Comey with then Senator Sessions and then Attorney General Sessions from October 2016 through May 9th, 2017? Mr. Rosenstein. So I didn't meet then Senator Sessions. The first time I ever met him would be early December so it wouldn't go back as early as October. I couldn't put a firm number on it. And I took office approximately, I believe it was April 27th, and the decision to fire Director Comey was made less than 2 weeks after that, a week and a half, I believe. And so there may have been some conversations there. I just couldn't put a firm number on it for you. Ms. Meng. Has then Senator Sessions ever shared concerns about Director Comey's actions in any of your conversations? Mr. Rosenstein. In general I think yes. But I am not sure if that is what you are asking, but yes. Ms. Meng. Can you share any of that information? Mr. Rosenstein. The as I discussed earlier, with regard to the issue--maybe within the scope of the independent--the special counsel's investigation, I am not going to be able to comment on that publicly, so I can not talk about that. What I can tell you, and I hope I have been clear about this, is that from my perspective I wrote a memo that has been cited with regard to the decision to replace the FBI director. I was not motivated in any way by desire to interfere with any investigation. And I think Director McCabe, acting director McCabe, has clarified that there has been no interference with an investigation. So that is from my perspective. Ms. Meng. In October 2016, Senator Sessions went on TV and praised Director Comey for his handling of the Clinton investigation. Do you have any idea when he might have changed his mind about Director Comey? Mr. Rosenstein. I am not going to comment on what was in anybody else's mind. As I said, I can tell you from my perspective, my view about that issue has been consistent. It is simply an issue of principle, it is not a personal matter. It is my principle view. And I would have written the same memo no matter who was President, because it reflects my view about the appropriate role of the FBI. ETHNICITY--VICTIMS OF CRIME Ms. Meng. Thank you. I want to switch gears for a second. Over the past several months I have received numerous complaints from constituents that there has been a spike in crime against members of the Asian American community in my congressional district and around the country. When looking into this problem I discovered that the most recent Bureau of Justice Statistics, criminal victimization report did not include an Asian American, Pacific Islander victim category as in years past. In fact, it is just described as others. There are categories for example for age, for White, Black, Hispanic, and then just an other. This hinders us from measuring whether or not there has been in fact a spike in crime within the API community. Can you commit to doing everything in your power to ensure that victims within the API community are counted in the same manner as other minorities this coming year? Mr. Rosenstein. You know, I will have to look into that, Congresswoman, I am not familiar with that issue. Coincidentally one of my first--actually maybe my first event after becoming Deputy Attorney General was to speak at the Asian American Pacific Islander event at the Department of Justice. It was a recognition of a month to commemorate that community that community, and I was proud to be there and we had a good showing of folks throughout the Department. But this issue I am not familiar with so I will look into it and get back to you but I just don't have an answer at hand. [The information follows:] The Office of Justice Programs/Bureau of Justice Statistics (BJS) expects to receive the 2016 data files for the National Crime Victimization Survey by the end June 2017. At that point, BJS will assess the impact of increased sample sizes to determine if it is possible to include violent crime estimates for Asian-American/Pacific Islander (AAPI) persons in the 2016 Criminal Victimization report. If it is possible to provide statistically sound estimates of victimization within the AAPI community, BJS will report those estimates. In previous years, despite the large sample size of the survey, a relatively small number of people reported victimization. This makes it difficult to provide reliable victimization rates for demographic subgroups of the population. Ms. Meng. I would appreciate you getting back to me. This is really important so that public policymakers and law enforcement officers are aware of any increase in crime victimizations trends within the API community. I yield back. IMMIGRATION Mr. Culberson. Thank you very much. It is my pleasure to recognize my friend and colleague from Texas, Judge John Carter. Mr. Carter. Thank you and thank you, Deputy Attorney General Rosenstein. I appreciate you being here. I apologize for being late, I was hosting the chief of staff of the Army in a classified briefing that I set up for Members of Congress. I couldn't break away until the last minute. I apologize for being late. I have a lot of interest in immigration because I have a lot of responsibility in the area of Homeland Security. In fiscal year 2015 and 2016 budgets we funded 80 new immigration judge teams. Yet the immigration court backlog continues to grow. The budget proposes an additional 75 new immigration judge teams, which I am all for. Does the DOJ have the infrastructure and courtrooms, in addition do you have the ancillary staff and lawyers to staff and place these judge teams? I have long been an advocate of placing immigration judge teams close to the fight on the border, place them with the men and women of the Customs and Border Protection that are down there in the fight. Where do you intend to place these teams? That is the beginning. I have more questions, but I would like to talk about that first. Mr. Rosenstein. Thank you, Congressman, Judge Carter. I think two responses, I did mention this earlier, but let me repeat it since I realize you weren't in the room. We have two issues with regard to staffing of our Executive Office of Immigration Review. The first is our budget request includes 75 new judges, and not just individual judges but teams. As you certainty know, a judge needs a support structure. So my impression is that the money that we are requesting, $75 million, will allow us to fund 75 judges and their teams, a total of 450 people. And certainly that would include space, office space, and equipment, and everything that they need in order to do their job. That is one issue. But the other issue, that you have highlighted, is that there are vacancies within the judges who have been already been authorized. In fact, we are currently working to fill 56 vacancies for immigration judges. The reason we have those vacancies was there was some bureaucratic difficulties with the hiring process. And I worked with our administrative folks, some of them behind me, to improve that. And I think that we are much better off now. We have a more efficient system in place. So we will be able to bring people on board more quickly. We have already hired 38 immigration judges this year. And we plan to have 345 judges on board by the end of this year. And obviously if we are funded for additional judges, we will be able to bring those on board as well. That will help, but as you recognize the backlog just tremendous. I mean, the notion that we have well over half million cases that are unresolved and I understand it is maybe close to 600,000 cases now. We need to get that under control. So I have met with the new acting director of the Office of Immigration Review, the previous director left the Department just a few weeks ago. I met with the new acting director who happens to be a judge so he is very familiar with the system. He has been an immigration judge. And I have talked with him about this challenge, and it is a big challenge. But if we get the new people on board, we will be able I think to at least stop increase in the caseload and then hopefully begin to make progress on bringing it down, of. And of course another important aspect of bringing it down is to reduce the flow of new cases into the system. And if we are effective in doing that, then over time, we will be able to bring that under control. But it is a big challenge. You also asked me about where they are going, and the answer is we are going to send them where we need them most. That will be based upon an analysis of where those backlogs are most significant. Mr. Carter. Thank you for the answers. I met with a--he said he was a chief of immigration judges for our region along with about 5 district judges down in the valley. And they were telling real horror stories about not having a place to hang their hat, not having anybody to help them, not having courtrooms or spaces they could call a courtroom to be able to hold the hearings. So I am glad you are on top of that issue because you have a tremendous backlog. And about the backlog, my staff has visited immigration courts in Texas and reported on the frequent and repeated administrative closings of immigration cases, specifically stemming from the 2014 to 2016 surge of juveniles and family units pouring across our southern border. Does the DOJ have any intention of reopening any of these cases? This is a tremendous number of people. Mr. Rosenstein. Congressman, I am afraid I don't know the answer to that, but I will be happy to look into it and get back to you. [The information follows:] Administrative closure is used to temporarily remove a pending case from the active docket of an immigration judge or the Board of Immigration Appeals. Administrative closure does not terminate the case, withdraw an existing Notice to Appear, or result in a final order. As a result, administratively closed cases are not subject to reopening because only cases that have resulted in final orders may be reopened. Instead, cases that have been administratively closed must be re- calendared and placed back on the adjudicator's active docket. Either DHS or a respondent may move to re-calendar a case that has been administratively closed, and immigration judges or the Board of Immigration Appeals will rule on such motions in accordance with applicable law. Whether immigration judges or the Board has the authority to sua sponte re-calendar an administratively closed case is a legal question that has not been resolved. Between October 1, 2013 and January 31, 2017, the Department administratively closed 16,521 priority surge cases. Mr. Carter. I would hope that we would be able to reopen those questions. I understand some of the compassion people have, but the reality was they used a loophole in the law to get into this country. And we need to at least have hearings to see if they really have a credible fear. It is very important. So thank you very much for what you do. And I look forward to working with you. Mr. Rosenstein. Thank you. Mr. Culberson. Thank you, judge. I understand the House will be voting between 3:30 and 3:45 so I will keep my question very short so I can pass it on to my good friend Mr. Serrano. SOUTHWEST BORDER I was pleased to see the Attorney General in April say that he was going to make the southwest border ground zero in our law enforcement effort to curb drug trafficking, human trafficking. And I wanted to ask you Attorney General Rosenstein, what are the Department's short and long-term plans to deploy law enforcement and ramp up prosecutions on the southwest border? And what other changes will take place this year? And what do you expect will be needed in the 2018 appropriations for the Department of Justice to ensure that the law is enforced on the southwest border? Mr. Rosenstein. Well thank you, Congressman. In the short- term we actually have surged resources by sending some additional immigration judges to the southwest border. And we have a plan to send assistant U.S. attorneys. It is primarily an issue of Homeland Security, which is responsible for policing the border and so they are responsible in the first instance for controlling that. But we do have programs within the Department, including-- our request includes $145 million to enhance border security and immigration, that includes additional immigration judges as we discussed, 70 more prosecutors, 40 deputy U.S. Marshals and 27 additional attorneys in the civil and environmental divisions. We also have programs that are implemented in some districts, such as Operation Streamline, which is an effort to prioritize immigration enforcement in our U.S. attorneys offices. So I think all of those strategies, Congressman, will have an impact. As I said, the primary issue is to reduce the flow of illegal aliens so we don't need to deal with this issue, but we rely on Department of Homeland Security in the first instance to maintain the integrity of the border. Mr. Culberson. Operation Streamline was instigated in the Del Rio sector by Federal District Judge Alia Moses who I admire immensely, and she simply is enforcing existing law with a compassionate heart and good sense. She is using the tools at her disposal there to ensure people that cross the border illegally that there is some consequence. As the ICE director told us this morning, if there is no consequence for violating the law then you can expect the law is not going to be honored. And to make sure that Operation Streamline is implemented up and down the southwest border will you be asking for additional prosecutors? Have people moved to the staffing, prosecutors moved to the southwest border? Mr. Rosenstein. Yes, that is correct. We have already internally from existing resources. Over the next month I anticipate we will be moving at least 10 prosecutors as a short-term way to assist those border districts that have the most significant challenge with immigration cases. But in our budget we are requesting 70 additional border prosecutors that would allow us to staff up and manage those cases. Mr. Culberson. I want to also echo my support with what the Judge Carter is asking about, is to encourage you to expedite the hiring of immigration judges and moving them to the southwest border as soon as rapidly as possible. I will yield back the balance of my time in order to expedite this and help. I recognize my friend judge--Mr. Serrano from New York. Mr. Serrano. Judge? I played a judge once on Law and Order. It is a true story. FBI DIRECTOR FIRING Mr. Rosenstein, last week former Director Comey testified that he shared his concerns with you regarding the President's meeting with him in asking him to let the Michael Flynn thing go. Director Comey said, quote, ``I spoke to the Attorney General and I spoke to the new Deputy Attorney General, Mr. Rosenstein, when he took office. And I explained my serious concern about the way in which the President is interacting especially with the FBI.'' end of quote. Did you have such a meeting with the then Director Comey? Did he share his concerns over the one-on-one meeting with you? And what was your response? Mr. Rosenstein. I did have meetings with Director Comey during our brief period in which we overlapped in this administration. And I am not sure exactly if that is what he said in his testimony, Congressman, but as I described earlier, I am not going to be testifying publicly at this time about any interactions I had that may be relevant to the Special Counsel investigation. I understand Director Comey did and I don't fault him for it. He is no longer a representative of the government. He has his own independent decision-making process, but for me, I think it would be inappropriate for me to discuss that in a public hearing at this time. Mr. Serrano. Okay. Former U.S. attorney for the Southern District of New York, Mr. Bharara recently revealed that President Trump called him directly three times during his first weeks in office and he was fired shortly after refusing the third call. This seems highly unusual to say the least. As a former U.S. Attorney from the State of Maryland, from 2005 until earlier this year, were you every contacted directly by the President of the United States? Would you say that such contact with a U.S. attorney is unusual. Mr. Rosenstein. I would say it is unusual, that doesn't mean it is illegal or wrong. But yes, sir, I agree, it is unusual. Mr. Serrano. Prior to this statement by Mr. Bharara, were you aware that President Trump had directly contacted him? Why do you think the President would take such a step? Mr. Rosenstein. I don't have any opinion, Congressman, about why that occurred. Mr. Serrano. But your statement is still that it is unusual. Mr. Rosenstein. Yes. Mr. Serrano. Okay. Mr. Chairman if our colleagues get in the time they want, I would like to ask a very short question at the end. Mr. Culberson. Certainly. Mr. Serrano. I would love to ask it now, but that is going a little bit overboard. Mr. Culberson. Very good. Mr. Rogers. OPIOID EPIDEMIC Mr. Rogers. Thank you, Mr. Chairman. General, let me get back opioids. When we had that terrible outbreak in my area 12, 13 years ago, we put together finally an organization of people of faith, law enforcement, people in treatment, and so on. And created an organization with a three-pronged attack on the problem, the holistic approach, and called it UNITE, which stands for, Unlawful Narcotics Investigations Treatment Education. And that organization still is going full blast. They have put in jail some 4,500 pushers. It covers about half of the State of Kentucky, but it is not a governmental agency and it is quasi and it works. And it is able to do a lot of things the government can't do like involve churches, people of faith, law enforcement, people from the Sheriff's offices to the city police and Federal, State and local. A highly successful organization only because I think it was able to marshal a regional coalition, something much larger than a locality. And we drew information from all sorts of people thereby because it was this large regional outfit. The CARA Act, that we passed, now for the first time authorizes grants to regional organizations, not just localities, like UNITE. And I really strongly encourage that, because it is the only thing that I found in my experience that really works. Now we took UNITE to the national level that holistic approach. The UNITE organization decided hey, this thing works, lets expose it to a larger audience. And we started a national summit on prescription abuse in Orlando for 3 or 4 years. Now it has been moved to Atlanta. In April, the sixth annual summit we had some 3,000 people there from every State and seven countries. The session number 5 we had the President, we will have the Attorney General, we will have governors, Senators, CDC, NIH and so on. All of the relevant players in one place, which is terribly important. Number one, I want to encourage you and the Department to take part in the summit next year, but more importantly to recognize these regional organizations, that now can be funded, can healthfully be funded, through the CARA Act. What do you think of that? Mr. Rosenstein. I agree with your approach, Congressman. Sometimes you hear people debate whether drug abuse is a law enforcement problem or a public health challenge. And I think that is a false choice, it is both. And we need support from law enforcement, and from public health providers, and from educators, and parents, and religious leaders. We need help from everybody to deal with this challenge. Because you describe the UNITE program in three steps, the three steps that I am accustomed to using are to talk about prevention, intervention and prosecution. And prosecution's an important part. It is what we do best and uniquely in the Department of Justice, but that is not the only solution to this problem. So I agree with you, I think a united approach, a comprehensive approach, what the DEA calls a 360 approach is critical if we are going to solve this problem. With regard to CARA, I would point out that we have requested for opioid abuse, we have requested $20 million this year as opposed to $13 million last year. So that budget does reflect that there are some cuts in some areas and it reflects an increase in the amount of money devoted to opioids. But this is not just a Federal issue before I came to D.C. we were working with the Governor in Maryland and his team, in developing strategy, and the Attorney General, without regard to politics because they are different parties, but we were all working together to try to come to terms with this because this is I believe a terrible epidemic that is a visiting tragedy on many American families. And we all do need to work together and get all hands on deck to address this from every perspective to make sure that we teach people to avoid this and we teach doctors to avoid getting people hooked, and we stop the criminals who are bringing these drugs illegally into our communities. Mr. Rogers. One of the big reasons why a regional coalition works for example, UNITE was able to get all 45 counties to join together into a single unit. And then authorized law enforcement to have jurisdiction, in all of those counties, so we could have a strike force where you had a small county with a sheriff and five city policemen, they can do nothing. But if we can bring in people from other counties, in mass numbers, and make the buys, and make the arrests, which we have done, then it works, only because we had this coalition of localities in a regional organization. So I strongly encourage that. In closing, Mr. Chairman, let me encourage also you to not cut the funding for the prescription drug monitoring programs, they really have made a big difference and now we are trying to get them all wired together and that takes money. So I hope that the grant programs for PDMPs, can be continued and that you will bring Missouri into the fold. Mr. Rosenstein. Congressman, that was an important issue for me in Maryland and I am very familiar with that and I worked on the opioid task force of the previous administration, and I worked with officials in Maryland in implementing a PDMP, a prescription drug monitoring program in Maryland. They varied throughout the country. And they are all called PDMP's but they vary in the extent to which they share information with law enforcement. But that can be a really valuable tool. In our current budget we are proposing $12 million to continue that effort nationally. Mr. Culberson. Mr. Kilmer. Mr. Kilmer. Thank you, Mr. Chairman. With permission, I would like to yield to our ranking member. Mr. Culberson. You are recognized. PUERTO RICO PLEBISCITE Mr. Serrano. I will try to make this as fast as possible, a totally different subject. My birth place Puerto Rico, we put in money and Mr. Culberson put in for us, $2\1/2\ million to hold a plebiscite in Puerto Rico. And the way the language read is that the ballot, voter education, and everything surrounding that election had to be approved by the Justice Department, we were thrilled with that because it would be the first time in 119 years that Puerto Rico would have a Federally sponsored question on its status. The Justice Department came back in a bizarre moment, I think, and said, you must include the current status on the ballot. And people like myself said, but the current status is a problem. We are trying to change it to independent, statehood, something else, associated Republic, not the colonialism that we have now. So they did it they went back to the legislation and changed the ballot. The Justice Department never responded. They had to vote on Sunday, the turnout is out there--I mean, the results are out there. Question number one, as far as the money goes, is that a dead issue? Can with we do something interactively? And number two, will the Justice Department be in any way looking at those results or at least saying that the ballot-- not saying--I am sorry, looking to see if that new ballot met the requirements? Mr. Rosenstein. Thank you, Congressman, this issue came to my attention yesterday as I was preparing for this hearing. And my understanding based on the staffers that I have talked with is that as you describe they were required to make a review of the ballot. They made a determination with regard to the first version that there was in their good faith opinion a flaw in the ballot and they made a request to fix it. And then my understanding is that the Representatives of Puerto Rico came back with their proposed ballot and with a date for the plebiscite that was in the very immediate future. And we simply didn't have time to review it. Now my understanding from folks I talked with, Congressman, is that they were operating in good faith in their judgment. That is very unfortunate that it developed the way it did. I don't know what we can do now to remedy it, but I will commit to you--as I said, I just learned about it yesterday--But I will look into it and I will try to get back to you after the hearing when I have further information about it. [The information follows:] The Department appreciates your interest in the Puerto Rico plebiscite and responded to your letter (co-signed by Chairman Culberson) on July 19, 2017. Thank you for your patience as the Department worked to respond to the questions that you raised in your letter and to the Puerto Rico Governor's Office. Mr. Serrano. That is good enough for me. Thank you, sir. Mr. Rosenstein. Thank you. Mr. Serrano. And thank you. Mr. Culberson. You still have 2 minutes left, if you would like to ask a follow up. Mr. Kilmer. Thank you, Chairman. I will actually very briefly. COPS GRANT FUNDING I was actually please to see that the budget proposed an increase in funding for the COPS program. We have seen great value in our neck of the woods with that program, and it is not just with regard to putting more law enforcements on the street, but also by pursuing more community policing opportunities. One of those very successful examples of that was the Project PEACE effort in Tacoma, which actually was a collaboration between the police department and community members. I would like to just get your sense of will the department continue to support the mission of the COPS program, and that work toward collaborative policing and improved community police relations? And moreover, do you think that the additional funds that are requested in this meet the level of demand for increased community policing? Mr. Rosenstein. Yes, Congressman, we will continue to support the COPS program. I met with the leadership at the COPS office, and I talked with them about my view of how important it is. And there are places in the country where we do need support for local law enforcement. And that COPS programs provides us with a valuable opportunity to support our State and local partners. I think you recognize, we all recognize that most of our law enforcement agencies are trying it do the right thing. Sometimes they don't have the training they need, sometimes they don't have the tools that they need. And sometimes there are willful violations, and when there are, we deal with them appropriately. But that COPS funding, which we have requested will allow us to help support State and local law enforcement to make sure that they are in compliance with Federal constitutional requirements. And I believe that that will help us in promoting public safety throughout the country. So with regard to your question about whether it is an appropriate amount, as we discussed, it is always a balance as to, you know, where it is appropriate to spend the money. But I can commit to you that with the request that we made, if that program is funded, we are going to make sure that money is used effectively to achieve those goals. Mr. Kilmer. Thank you, Mr. Chairman. I yield back. Mr. Culberson. It looks like they are just about to call a vote on the floor. Mr. Jenkins. DEA 360 PROGRAM Mr. Jenkins. Thank you, Mr. Chairman. Let me thank you for the DEA's work on the 360 program and I appreciate the fact that I think it has either been kicked off or one of the early designated locations as Charleston, West Virginia. So thank you for your investment and your attention to our State and the opioid epidemic. We do notice that and I have had some discussions with FBI officials about the fact that there are six residency agency locations in West Virginia, but only one of which is in the 3rd congressional district. And we had a discussion about the need for an additional location, potentially in Rowley County, Beckley. Do you have any information about the status of that request and what the FBI's potential investment or a new location in West Virginia might be? Mr. Rosenstein. From what I understand about that, congressman, is that it has been a number of years since the FBI has had an RA in Beckley, West Virginia. The Bureau's Pittsburgh field office currently oversees West Virginia and there are five RAs covering the entire State. But I do know the FBI routinely reevaluates its footprint to ensure its offices are adequately manned and resourced. The current RA, as I am sure you are aware, are in Wheeling, Huntington, Charleston, Martinsburg and Clarksburg. And I will talk with the acting director and once confirmed the new director about whether there with is a need for sixth. Obviously those are difficult decisions. I know from my own experience as a prosecutor we like to have them everywhere, but there are limits on our resources, number one. Number two, there are benefits to having our agents grouped together, rather than spreading them out too broadly, it is valuable to have teams or squads of agents who are co-located and work together. So there are a number of conflicting challenges there. The most important thing is we need to make sure we have appropriate resources to enforce Federal law in those areas, West Virginia, I will make sure that we do. Mr. Jenkins. I appreciate that. Clearly we have an area of need, high intensity area from a per capita. Virtually no place else in the country has as serious a problem. We need to put resources where the problem is and that is in my district in West Virginia. Thank you. I yield back. Mr. Culberson. Mr. Cartwright. US PAROLE COMMISSION Mr. Cartwright. Thank you, Mr. Chairman. Mr. Rosenstein, I want to invite your attention to the issue of notification to families of victims of crime, notifications of parole hearings. We had this issue come up in my district and--let me see if I can find that--my constituent whose name is Thomas Halpin called my attention to the lack of timely notification of victims families before a parole hearing. Here is what happened, Mr. Halpin's sister and brother-in- law were the victim of a brutal murder 30 years ago. The man who killed this couple is currently serving a life sentence with the possibility for parole. Mr. Halpin and his family vigorously oppose parole for their sister's murderer. And under the Crime Victims' Rights Act they have the ``right to reasonable, accurate, and timely notice of any public court proceeding or any parole proceeding involving the crime, or of any release, or escape of the accused.'' Mr. Halpin informed me that he did not receive adequate notice in advance of the most recent parole hearing which occurred on March 7 of this year. The family has experienced a tremendous hardship every time parole comes up for the criminal. I believe the least we can do is provide them adequate notice so they can provide testimony in advance of the hearing. It is my understanding there is no standard timeframe for notifying victims and families in advance of parole hearings. Am I correct in that? Mr. Rosenstein. Congressman, I regret I do not know the answer to that, but I will certainly look into it for you. [The information follows:] There is no standard timeframe for notifying victims and families in advance of parole hearings specified by statute, legislation, or the Attorney General Guidelines for Victim and Witness Assistance (2012 edition). However, the United States Parole Commission (USPC) has internal procedural guidance that provides that notifications will be completed 45 to 60 days before the week of the scheduled parole docket. Mr. Cartwright. That is the right answer. I don't want you to guess. Can you explain the logistical decisionmaking process for determining when and under what circumstances such notifications might be made? And do you feel the commission has sufficient resources, that is what this committee is about, to provide reasonable notice to victims before hearings? Mr. Rosenstein. I agree with you 100 percent, it is important for us to make sure we do provide notice to victims. The parole commission, that is new to me, I didn't have responsibility for that in any of my previous positions in the Department. Patricia Smooth is currently the director, the acting director in the parole commission. I will talk with her about that or the chair. But I don't know hopefully that is an isolated case as opposed to evidence of a systemic problem I think even in our office where we made our best efforts. There would occasionally be a case where a mistake was made and for some reason we were unable to give appropriate notice of a matter where a victim had a right to notice. So what I can tell you is I will look into that general issue and that particular case. And with your permission we will get back to you after the hearing and I will let you know what we find out. [The information follows:] The United States Parole Commission (USPC) provides notification for its parole-related proceedings. This includes actions relating to release, change in offender status, changes on parole, and termination (when applicable). All persons identified as a crime victim or victim representative are eligible for notification. If a victim and/or representative is located, USPC attempts to contact the person by sending a notification letter. When a response is received, victims and/ or their representative may elect to participate in parole proceedings in person, by video teleconference, by audio statement or by written testimony. Attorneys, family members, relatives, friends, or other interested persons may submit written correspondence to the Commission at least 30 days before the scheduled docket, for consideration and inclusion in the hearing. There are instances where victims and/or representatives contact the USPC after this time period and Victim Services Program (VSP) along with the United States Attorney's Office makes every effort to ensure participation. When the USPC is scheduled to hold hearings, its Operations Division carries out a review of eligible cases and receives documentation from the Bureau of Prisons 60 days in advance of the scheduled docket. The VSP then reviews all cases to identify those that include a violent crime and/or fraud--to determine if notification is required and to identify the eligible victims or representatives. The VSP sends out notifications within 45 to 60 days of the scheduled docket week. In cases where there are no previously registered victims and/or representatives, the VSP must research contacts using original case records. If the information is outdated, the Commission then searches several proprietary record databases to locate current contact information for the victim and/or next of kin. The USPC has access to a wide range of resources that serve to aid victims that are involved in parole proceedings and continues to improve the services it provides. Mr. Cartwright. I will be obliged on behalf of the Halpin family and any other family so inconvenienced. I will appreciate working with you on the issue. I yield back, Mr. Chairman. Mr. Culberson. Thank you, Mr. Cartwright. We are down to the 9\1/2\ minutes in the vote. I understand any additional questions we have we will submit for the record. Mr. Rosenstein, I want to thank you for your appearance here today and for your service to the country. The Subcommittee hearing is adjourned. Thank you very much. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, June 21, 2017. FEDERAL BUREAU OF INVESTIGATION WITNESS ANDREW G. MCCABE, ACTING DIRECTOR, FEDERAL BUREAU OF INVESTIGATION Mr. Culberson. The Commerce, Justice, Science Appropriations Subcommittee will come to order. The Subcommittee is pleased to welcome today Acting Director Andrew McCabe to present the fiscal year 2018 budget request for the Federal Bureau of Investigation. The FBI is our premier Federal law enforcement and domestic intelligence agency which often makes headlines, whether the topic is terrorism, cyber threats, espionage, or international organized crime. The FBI leads antiterrorism, counter intelligence and national security efforts, while also combating gangs, financial fraud, human trafficking, and public corruption. It is the indispensable partner to State and local law enforcement agencies and our liaison with Federal law enforcement partners. We are very grateful that the FBI is leading the investigation into the Wednesday morning shooting at the congressional baseball practice. We are deeply grateful for the work that your officers do every day, and for looking into this terrible tragedy. We are very, very grateful for the work, the courageous work of the Capitol Police, the law enforcement officers of Alexandria who saved a lot of lives that morning, and for all the first responders who came out to help. Our thoughts and prayers are with our Whip, Majority Whip, Steve Scalise, Zachary Barth, Matt Mika, Special Agent David Bailey and Special Agent Crystal Griner, who are the victims of this senseless crime, and we pray for their quick recovery. The threats that face our country, Director, and the safety of all Americans appearing to be growing in range from terrorist groups such as al-Qaida, and ISIS, espionage, cybercrime, international organizations, who traffic in both humans and drugs in violent crime. I am particularly concerned about the terrible epidemic of human trafficking which, unfortunately, Houston, Texas and Interstate 10 has been a hub for too much of that. There are too many young women whose lives have been destroyed in this terrible traffic. I look forward to visiting with you about what the FBI can do and is doing, and what the Subcommittee can do to help support your work to fight human trafficking and exploitation of young women. Above all, we want the men and women of the FBI to know how immensely proud this Subcommittee is and the Congress is of their work, and that we will work together, Mr. Serrano and I, arm in arm, to support you, to help you with the resources that you need to continue your important work to protect this great Nation. We are, however, facing a difficult budget situation. Mr. Director, there is an unrelenting pressure to trim budgets. We have also to ensure our constituents that their hard-earned tax dollars are being spent wisely, and frugally, and effectively. We are immensely grateful to you, sir, for your service to the Nation, and pleased to have you here today. And before we proceed, however, I would like to recognize the ranking member of the Subcommittee, the gentleman from New York, Mr. Serrano, for his comments. Mr. Serrano. Thank you, Mr. Chairman. I would like to join you in welcoming Acting Director McCabe before the Subcommittee. This is a turbulent time for the Federal Bureau of Investigation, for reasons not of the Bureau's making. I think it is important, however, that we take a moment today to thank the rank and file of the FBI for their hard work and service to our Nation. Please, Mr. Director, pass along our gratitude to the FBI agents and professional staff around the Nation and abroad. As a career FBI employee, I am glad that the Acting Director has a chance to testify before us this afternoon. I believe that your insights into the agency in the wake of Director Comey's firing are vitally important in helping us to understand the impact of that action, and subsequent statements by the President on agency morale. The FBI's fiscal year 2018 budget request includes a slight reduction of $44.6 million from the amount in fiscal year 2017. This is somewhat ironic, given the fact that a majority of FBI budget falls under the Defense spending side of the ledger where the President has proposed a $54 billion increase. Apparently, none of that increase is for the FBI. Given your important role in protecting our Nation, this is very troubling. I am mostly concerned that the Justice Department is in the process of giving less priority to critical civil rights and voting rights protections that have long been upheld by the Department. The FBI plays a crucial role in investigating violations of our Federal civil rights laws, including under the Voting Rights Act, the Civil Rights Act, and the color of law violations. And it is important that your ability to maintain these important roles is maintained. I hope we can discuss your ongoing efforts today in the context of the policy changes being put forward by the Attorney General. Additionally, I am interested in discussing your execution of the NICS system which conducts criminal background checks for firearm purchases. You have requested 136 fewer personnel to conduct background checks in 2018. This is problematic because this reduction will increase delays, allow more sales to go forward after 3 days without the necessary check, and likely increase over time for an already overworked staff. This proposed cut seems like an unwise decision that will harm public safety. Lastly, I think it is important to discuss the ongoing investigation into Russia's interference into last year's election. I am curious about how your work in this area dovetails with the ongoing investigation by the Special Prosecutor, and whether any FBI personnel or resources have been detailed to Director Mueller. Thank you for your service, sir, as Acting Director and other parts of the Department. I look forward to your testimony. Mr. McCabe. Thank you. Mr. Serrano. Thank you, Mr. Chairman. Mr. Culberson. Thank you, Mr. Serrano. Director McCabe, we are delighted to have you with us today, and you are recognized for an opening statement. Your written statement will be entered into the record in its entirety without objection. And if you could keep your remarks to 5 minutes, we would be very grateful. Thank you for being with us today, sir. Mr. McCabe. Thanks, members of the Subcommittee, for having me here. Thank you for your support of the men and women of the FBI. We could have all the money in world, all the best technology, but without the amazing people of the FBI, we won't be able to keep the American people safe. I am proud of these individuals and I am grateful for their dedication and their hard work. We are all grateful for your continued support for our mission. As you know, the FBI is in a time of transition. It has not been easy on any of us. Director Comey was a thoughtful and inspiring leader. He fostered a number of priorities to make the FBI better and stronger, from improvements in the way we collect, use, and share intelligence, to our cyber programs, to leadership and diversity issues. We are going to do our best to make sure we continue to make progress in all of those areas. The threats we face are constantly evolving. We, too, must continuously examine the way we can do business to ensure that we are doing everything we can in the best way that we can. I firmly believe that the FBI maintains a sacred trust with the American people to protect them and uphold the Constitution. We do that with the precious resources that those people and this Committee give us. So, a fundamental element of that sacred trust is making sure that we are always good stewards of the taxpayers' money. We have tried to be good stewards of the funding provided, and we have been conservative in our budget requests. We ask for what we need, and when we need extra in certain areas, we do not hesitate to tell you. And, yes, I have a few of those extras to talk to you about today. The FBI's budget request this year proposes a total of $8.7 billion for Salaries and Expenses. This will support 33,533 positions: 12,484 of which are Special Agents; 2,950 of which are Intelligence Analysts; and 18,099 are Professional Staff. We need every single one of those people. They are the lifeblood of the FBI. They are, over and beyond everything else, our best and most impactful resource. Now to be clear, the fiscal year 2018 budget represents a decrease of more than $400 million from the fiscal year 2017 levels. This will result in a net reduction of over 1,600 positions and more than $44 million for Salaries and Expenses. So let me shift briefly to program enhancements. I would like to highlight a few of the things we requested. First and foremost in cyber, we asked for $41.5 million to build on our cyber capabilities. These are investigative capabilities, collection capabilities, and analytic capacity. The frequency and impact of cyber attacks on our networks has increased dramatically. We need to shift from reacting after the fact to preventing such attacks before they occur. We have to collect the best intelligence and we have to share it with our partners both in law enforcement and in the private sector in real time; and to do that, we have to hire and develop the best cyber talent. In the counterintelligence area, we are asking for $19.7 million to counter threats from foreign intelligence services. We will also use these resources to focus on insider threats from trusted employees and contractors. In the area that we refer to as going dark, we have asked for $21.6 million to address this problem. And I can tell you, sir, this is more than just getting into locked devices or communications, which is certainly a part of the issue, but it is not the entirety of it. Going dark is impacting our ability to execute lawful court orders on electronic devices across the spectrum, and that is a growing problem. Of course, we still have our priority of violent crime. Violent crime remains one of our highest priorities, for good reason, and it is one of the things that challenges our partners at the State, local and tribal level every single day. We are asking for 33 positions and $3.4 million to implement recommendations from the Attorney General's Task Force on Crime Reduction and Public Safety. In the surveillance area, we have asked for an additional $8.2 million to sustain our surveillance capabilities. As you know, sir, that period of time within which a counterterrorism target proceeds from merely being radicalized to deciding to operationalize their intent has condensed over the last several years. We are most concerned with modalities that include vehicles and bladed weapons, some of which we have seen, in fact, earlier today in Michigan, which will further compress that time that we refer to as from flash-to-bang. One of our best tools against that threat is lawful surveillance. If you will give me just a minute, I will talk about one of our highest legislative priorities for this year, truly our most important legislative priority, and that is the reauthorization of FISA section 702. As you know, section 702 gives us the authority to collect foreign intelligence from foreign persons we believe to be outside the United States. And this intelligence is incredibly important to us. It is a tool the entire U.S. Government benefits from, and it is one that if we lose it, this country will be less safe. Without it, we do not have a window into the activities of the terrorists, spies, the weapons proliferators, and other foreign adversaries who may be coming after us. We don't know what they are planning, we don't know who they are recruiting. And we might not know what is coming our way. As you know, the program undergoes vigorous oversight from the executive, legislative and judicial branches, and that is just the way we want it to be. We are also asking for resources to disrupt transnational criminal syndicates, to process increased number of NICS checks per year, and to maintain our Biometrics Technology Center. These enhancements are important and necessary. And we know that we can always count on the resources we need to keep the country safe, and as I said, we are very grateful for that. In conclusion, our leadership has changed, but the fundamental things about the FBI will never change. Our commitment to keeping the American people safe, our fidelity to the Constitution and the rule of law, and our core values: respect, compassion, fairness, integrity, accountability, leadership and diversity, and, of course, adherence to the Constitution. These are the values that have made the FBI what it is today. We will stay focused on the mission, we will keep doing great work with your support, because the American people deserve no less. With that, I am happy to take your questions. Mr. Culberson. Thank you, Director McCabe. Your salaries and expenses request this year is $45 million below the enacted 2017 appropriation, although I know this is the result of the assumption that the OMB made that we would be under a continuing resolution, which fortunately did not happen, I do not want to get you crosswise with OMB, but the request appears to leave the FBI with a hole to fill and help us assist you with that. I wanted to ask, how would this reduction affect the FBI's ability to address terrorism and homegrown violent extremism? And how would it impact priority investigations? Mr. McCabe. Sure. So it will certainly impact us in many ways. It is a broad and deep enough reduction that it will touch every program. It will touch Headquarters and it will touch our Field Offices. It is a reduction that is not possible to take entirely against vacancies, it is a reduction that will touch every description of employee within the FBI. So we will lose Agent positions, we will lose Analyst positions, and, of course, Professional Staff. As you know, sir, we went through a period of sequestration a few years ago where we reduced 3,000 positions during the course of sequestration. It has taken us quite some time to hire our way back up to full strength. We are on target to be at very close to full strength by the end of this year, and the reductions that you have described will take us backwards a step. Mr. Culberson. Those, of course, just are recommendations. This subcommittee will have the final word on that. And you know how strongly we support your work and will do our very best to help you deal with that. Mr. McCabe. Thank you. Mr. Culberson. Make sure you do not have any adverse impact. The FBI requested an $8 million increase for surveillance of high-priority targets. Why is that a priority? And how is the FBI meeting your current surveillance needs? Mr. McCabe. So as I said, sir, we are in good shape right now. That $8 million is all personnel funding. It essentially enables us to protect about 78 positions that would likely have been added to the reductions that we have discussed. The demands we have placed on our surveillance teams over the last several years has just been enormous. As the number of homegrown violent extremists, the number of counterintelligence targets, and those folks that we need to keep a very close eye on grows, sometimes on a day-to-day, 24-hour basis, those resources become all the more important. So a reduction in that area is particularly tough for us. Mr. Culberson. As I mentioned in my opening statement, we have a real concern in the Houston area, it affects the whole country, but unfortunately, because of I-10 and Houston's location, we have a terrible problem with young women being exploited and sold into slavery. It is just a catastrophic and heartbreaking situation. Could you talk to us about the work the FBI it doing to help fight human trafficking? Mr. McCabe. Yes, sir. Particularly down in the southwest border area where we have, as you know, five field offices and 11 RA's that address border issues. We have made a significant investment in terms of our safe streets task Forces and the work we do with our partners at DEA, DHS, CBP and others. Frequently, we find the same transnational organized crime groups that are engaged in narcotics trafficking are also engaged in human trafficking. So it is that combined work that we do in the task force environment that lets us be as productive and effective as we possibly can be. But we recognize that as a growing threat, and it is an area where we want to keep focused very closely and make sure that we have the right folks doing that work. Mr. Culberson. Is the budget request satisfactory in this regard? And what can the committee do to help ensure that--what additional resources do you need to really be--to beat back this terrible epidemic? Mr. McCabe. I think the most valuable thing for us at this point, sir, would be to try to restore those reductions that we are likely to sustain in 2017. Mr. Culberson. One of the main challenges the FBI is encountering is regarding the supply chain, particularly with the concern we all have on back doors or Trojan horses being built into hardware. Mr. McCabe. Yes. An incredibly important area right now and one that we have really tried to expand the amount of outreach that we are doing across the government and across the private sector. We are in a unique position to see those threats coming in from the work that we do on the counterintelligence side, particularly. And so we have tried to spread that word utilizing things like the best practices document that I know you are familiar with, to let folks know that these are the threats they need to be aware of, particularly across the government as they require high-tech infrastructure for their system. I think it is also important, and it has been great to see in the last several months, the new administration has a deep interest in addressing some of the things we have seen from the CFIUS program. I think there are a lot of ways we can be more effective in terms of monitoring foreign investment, particularly in our high tech industries. Mr. Culberson. Thank you, Director. Mr. Serrano. Mr. Serrano. Thank you, Mr. Chairman. I am concerned that the special counsel you appoint to investigate the ties between the administration and Russia will not have adequate resources. Is the Special Counsel being provided with full access to all FBI resources needed for an investigation? Mr. McCabe. He is, sir, he is. I can assure you of that. I have had many, many interactions with the Special Counsel and his representatives. In fact, we are meeting in the next 24 hours to discuss exactly that. We have a great number of folks who have already been detailed to that team. And I have assured Director Mueller that we will do everything necessary to deliver the resources and to meet the needs that he has to do that work. Mr. Serrano. Thank you for your answer. Is the FBI investigation continuing concurrently with the Special Counsel investigation, or have all resources and necessary personnel been transferred to Director Mueller's office? Mr. McCabe. All the resources necessary to conduct the investigation that Director Mueller is now responsible for have been assigned to that effort under Director Mueller. It is important to note, though, sir, that the FBI continues to maintain responsibility for counterintelligence issues writ large against all of our foreign adversaries, and certainly including our Russian adversaries. So we still do work in the Russia counterintelligence space, but we are careful to leave what is the Special Counsel's to the Special Counsel. Mr. Serrano. To make a lead-in as short as possible for my question, Director Comey had felt uncomfortable, he said, and told General Sessions about meeting with the President. So my question to you is, have you met President Trump? How many times? And when were those meetings? Who else attended it those meetings? And would you feel uncomfortable meeting alone with the President? Mr. McCabe. I have met with President Trump on very few occasions, and those have all been occasions where there were many other people present. I have not felt uncomfortable in those meetings. I am sorry, what was the rest of your question? Mr. Serrano. If you would feel uncomfortable meeting with the President alone? Mr. McCabe. So as you know, we have a well-developed and long-known White House contacts policy between the Department of Justice, the FBI and the White House. And I am aware of what that policy is, and I do everything I can to ensure that my contacts with the White House, be they with President Trump or anyone else, are within the scope of that policy. I have talked to the Deputy Attorney General about that, and any contact that I have would have with the President would be approved by the Deputy Attorney General first. Mr. Serrano. These are questions that have to be asked because they are on the public's mind, and we need to know. Have you been asked for loyalty oath by the President? If not, what would you do if you were? Mr. McCabe. So I will answer the second part first if that is okay. I have taken an oath already to the United States of America to protect and defend the Constitution. That is the only oath I will take. So that is not really an issue for me. Regarding specific conversations that I have had with the President, I don't think it would be appropriate for me to discuss in this forum. Mr. Serrano. Okay. One last question because my time is running out, is something that came up the other day, and we were thinking when Mr. Rogers from Kentucky was chairman of the committee, and I was his ranking member right after 9/11, he gave a lot of money to the FBI. Mr. McCabe. Thank you, sir. Mr. Serrano. Rightfully so, I went along with it. It was a lot of money. Year later, I asked Director Mueller at another hearing, do you think--I have to word this properly, because terrorism is our main focus--did we play more heavily on the terrorism part and give a pass maybe to white collar criminals, to drug dealers, to public corruption and so on? At that time, he said there had been an overemphasizing on the part of terrorism. He said it carefully because we knew what he meant, but are we back to a situation where you can handle both where the Department can deal with both so that the guys selling drugs in my community or supplying the drugs to my community is not getting away with it? Mr. McCabe. So I think I can best answer your question, sir, by saying, I think we are in the right place now in terms of the emphasis and the resources we put on those very divergent programs. There is no question that our criminal threats continue to bedevil this country in the same way they do the FBI. We exercise constant vigilance against those threats, and we are constantly reprioritizing where we need to put our precious resources and our personnel. Could we do more with more? Sure, but we understand that the resources are finite, and that the committee has many different agencies and programs they have to support. So at the same time, I think that period that you referred to after 9/11, we were standing up, really, our capability as an intelligence organization and our response to the terrorism threat, which really required a very quick and a broad and deep evolution in our approach to it. I feel pretty comfortable to say that we have done that hard work. We are in a very different place today than we were about 10 or 15 years ago. Mr. Serrano. Well, rest assured I will support the chairman in making sure that you continue to have the resources to be able to do both, because they are both important. Mr. McCabe. They are, sir, they are. Mr. Culberson. Thank you, Mr. Serrano. I recognize the former chairman of the full committee, the gentleman from Kentucky, Mr. Rogers. Mr. Rogers. Thank you, Mr. Chairman. Former chairman of this committee, which I thoroughly enjoyed. Mr. Director, welcome. Mr. McCabe. Thank you. Mr. Rogers. I want to talk to you briefly about transnational criminal organizations, and the impact of those groups on the flood of narcotics coming into our country by way of Mexico, primarily. What can you tell us about what you are doing to try to disrupt those criminal organizations and the finances that are generated thereby to allow them to do bad criminal things? Mr. McCabe. Yes, sir. Yes, sir. So we see it the same way that you do. We are looking at---- Mr. Rogers. Use the microphone there. Mr. McCabe. Is that better? Mr. Rogers. I cannot hear you. Mr. McCabe. Is it working? I will try to speak a little louder. It is late in the day, maybe I am a little hoarse. So we see it the same way that you do. We think that is the place for FBI resources to focus in this fight. There is a lot of work being done across the country, particularly by our State and local colleagues, but the place where we can add the most value is by bringing our enterprise theory of investigation to those sorts of transnational organized crime groups. We have done that by doubling the number of task forces that we have working that work. We have done that by bringing our white collar experts into this fight by having agents specifically addressing the abuse of prescription opioids and how that leads to heroin abuse and overdoses that are plaguing so many of our cities. We have done that by activating our Legats in places like Mexico City and other places on the other side of the border to help us to better liaison and interact with our colleagues where some of these groups are emanating from. Mr. Rogers. Well, it is not working. Mr. McCabe. Yes, sir. Mr. Rogers. It is estimated that these illegal profits from transnational criminals is $322 billion a year and growing. And we all know the narcotics problem is exploding in this country, practically all of which is coming to us through Mexico. And including Fentanyl from China is coming through the same gangs in Mexico. What can you tell us that would encourage us to believe that you will get control of this thing? Mr. McCabe. Sir, what I can tell you is this is a problem and an issue that we will not police our way out of. It is going to require a whole-of-government effort. But I can tell you what the FBI has to contribute to that, and it is the investigative experience. It is the connections with foreign partners. It is the ability to bring our Federal law enforcement and State and local law enforcement together in that fight. There are border security issues, there are diplomatic issues, there is a lot tied up in that problem right now. That is how we see our part of it. Mr. Rogers. Well, you are correct, you are only a part of the solution there. You have got the DEA, and we have got the State Department and numerous other agencies that are working on pieces of the problem. But it is a bad problem. Mr. McCabe. Yes, sir. Mr. Rogers. And it is eating this country alive. And we have to redouble our efforts. Let me quickly, Mr. Chairman, switch briefly to another topic, and that is cybercrime. Mr. McCabe. Yes, sir. Mr. Rogers. Cyber attacks. According to CNBC, a cybercrime costs the global economy $450 billion annually. In 2016, over 2 billion personal records were stolen; over 100 million Americans had their medical records stolen; five out of every six large American companies were targeted by cyber attackers in 2014, a 40 percent increase over the year before. At the same time, 60 percent of all targeted attacks strikes small- and medium-size businesses, which typically have fewer resources to invest in cybersecurity. An enormous problem. Cybercrime in the public and private sector continues to pose an enormous risk to our economy, not to mention our national security. Forbes reports that cybercrime costs to the economy quadrupled from 2013 to 2015, and may again quadruple by 2019. As the lead Federal agency in this space, what are you doing to get in front of these threats? Mr. McCabe. Yes, sir. So it is a great question. Cyber is the issue that challenges us the most deeply. It hits every program that we are in, and it changes every day. So cyber, as you know, we have the lead designation for threat response. We are the folks who will go in, of course, with our partners, to figure out who did it and where it came from. In order to do that, I need the right people, with the right background, the right talent and technology to put on that problem set, and that is what we are doing right now to ensure that our folks have the tools they need, we are hiring the right people, we are able to keep them on board and on target. The second thing that we are focused on is taking those cyber investigative skills, tools, and capabilities, and making sure that we are pushing that out across our other operational programs. So I need my criminal investigators to be looking at social media, doing network analysis, understanding cyber threats; I need my CT and CI folks to be doing the same thing. So we are engaged and constantly rethinking how we are approaching the cyber target set. I think we have a strategy that we have been deriving for the last year or so. We have the right people on it. But this is a threat that continues to change and we have to be agile to stay in front of it. Mr. Rogers. Godspeed to you. Mr. McCabe. Thank you, sir. Mr. Culberson. Thank you, Mr. Rogers. Mrs. Lowey. Mrs. Lowey. Acting Director McCabe, I am very concerned about the morale at the FBI in the wake of the proposed budget cuts and the disparaging comments made by President Trump. In your opinion, was the FBI, quote, ``in disarray,'' end quote, as the President claimed prior to firing Director Comey? Did Director Comey have the support of FBI leadership and workforce prior to his dismissal? Mr. McCabe. He did, ma'am. Mrs. Lowey. Thank you. Mr. McCabe. It is not my opinion that the FBI was in the state of disarray. It is my opinion, and has been my observation over the last several years, that Director Comey enjoyed a deep and positive relationship with the men and women of the FBI. Mrs. Lowey. Thank you. In June 2015, we saw the lethal consequences of the incomplete background checks when critical information was not discovered within the 3-day limit and a firearm was purchased by Dylann Roof. He later went on to kill nine people during a prayer service at the Emanuel African Methodist Episcopal Church in Charleston, South Carolina. He should never have had that gun. Your budget proposes reductions to the staffing for background checks at the FBI. In the bipartisan omnibus spending bill, we provided an increase in funding, part of which went to hiring 136 additional workers to conduct background checks. This budget would cut those additional staff. This is inconsistent with this administration's claims to prioritize violent crime reduction. How would this budget impact the ability to complete background checks within the 3-day limit? Does this jeopardize the ability of NICS examiners to confidently identify any disqualifying records? Mr. McCabe. The short answer, ma'am, is yes. Having fewer people to do NICS checks will make it harder to get the NICS checks done within the 3-day requirement. As you know, the numbers for 2018 are significantly behind where we were in 2017. We are experiencing historic rises in the level--in the number of NICS checks every year. We have every reason to expect that that will continue. So, fewer resources will hurt our folks there. We try to cover the increases in work by extending large amounts of overtime and things of that nature, but that it is not a sustainable way to keep the workforce on target. Mrs. Lowey. Following up on that, because it has concerned me for quite a while and I would love your opinion as an experienced person at the FBI. What percentage of cases, background checks, do you wish you had more than 3 days, 4 days, 5 days? I have heard some of the experts say they would even include the number 9 days. Could you comment to us on this? Mr. McCabe. Ma'am, I do not know if I can give you that percentage right off the top of my head, but I certainly will take that back and get back to you. I think folks don't understand that the logistical challenge of corresponding with many different jurisdictions where you have to reach out to confirm arrest histories, and conviction histories, and dispositions of criminal charges and things of that nature. And it just takes longer many times than 3 days to get responses on some of that work. So by definition, some percentage of that work lapses past the 3-day period and, you know, we would be better off if we could get that done. Mrs. Lowey. I appreciate that. If you could get back to us, I think it is important when we are making policy to understand the hard work that the FBI does. And it was my understanding at a previous hearing that in many cases, 3 days just is inadequate. So you are agreeing that 3 days may not be adequate and you will get back to us, on what percentage of the case you need more time, and more staff to do the work? Mr. McCabe. Yes, ma'am. [The information follows:] percentage of nics checks that go more than 3 days Approximately 3 percent of all NICS Federal firearm background checks enter the ``delayed'' status after three business days have elapsed and a final determination has not been made. Mrs. Lowey. So cuts certainly are not going to help us when it comes to background checks. Mr. McCabe. That is right. Mrs. Lowey. Thank you. Thank you, Mr. Chairman. Mr. Culberson. Thank you, Ms. Lowey. The individual's name stays in the system if something pops up after you run a check and they have a problem, ATF is directed to go after them and get the weapon, correct? Mr. McCabe. They are. So we have I think it is 88 days. Is that right? Eighty-eight days to continue to look at those files that go past the 3-day mark. And if we get the response within that period and the gun has already been delivered, my understanding is a referral is made to ATF to recover it. Mr. Culberson. It is important to recognize there is an 88- day safety net to catch any mistakes, because we are all humans. Judge Carter. Mr. Carter. Thank you, Mr. Chairman. Acting Director McCabe, welcome. I am glad to have you here. Mr. McCabe. Thank you. Mr. Carter. Homeland Security has developed the southern border and approach campaign, to concentrate resources on transnational criminal organizations responsible for the majority of crime along the border. In this budget, you have requested funding for hybrid squads to bring a threat based view of these dynamic multifaceted criminal enterprises. How do these hybrid squads operate? And are you working together with Homeland Security on this? And in addition, to the border liaison officers along the southwestern border, what has been the most effective means to combat transnational criminal organizations along the border? And what can this committee do to help you on that issue? Mr. McCabe. Yes, sir. So as you know, in that vein, we have asked for $6.8 million in this budget, all personnel to restore 65 positions to do exactly that work. The hybrid squads are the ones--I do not know that I can describe it much better than you already have. It is an ability to bring our intelligence folks together with our case officers, our Special Agents, and our task force partners, which invariably include many different elements from the Department of Homeland Security, as well as State and local officers. All for whom the criminal issues at the border have an impact on their communities, and on the folks that they protect. So that is true in all the work we do--in the counterterrorism area and every other area--we are stronger through partnership. So having the right folks in those places to link up with our partners and do that work, is the way forward for us. And so, to have the people to do that is really the biggest way that you can help. And I cannot overstate the importance of having a robust, well-trained, stable population in our Legat offices, particularly in Mexico City, because you can't work transnational organized crime just from within the borders of the United States; you have to be able to build relationships and work those issues with your partners overseas. Mr. Carter. I agree with that. I agree with Henry Cuellar, my colleague on Homeland Security. We need to push deeper and deeper from the border, the first lines of defense should not just be the border. Mr. McCabe. That is right. Mr. Carter. So I agree with that. Any resources needed--as to your role in coordinating these groups, you all work together and you are the coordinating agent? Mr. McCabe. That is right, that is right. It is. And, of course, we think we are well-positioned with the resources we have. That is why, you know, cuts that will touch our field offices and our headquarters elements the way the 1,600 cut for 2018 is likely to do, is where things start to get tough for us. Mr. Carter. Well, let us know what you need. Mr. McCabe. Thank you, sir. Mr. Carter. Another issue that you mentioned in your opening statement, going dark. In this budget, you have requested $21.6 million in funding for operational technology investments to counter what is called ``going dark.'' And as I understand, that is encryption, dealing with encryptions. Mr. McCabe. In large part, yes, sir. Mr. Carter. I understand the FBI has limited access to 3,000 mobile devices linked to various crimes that you are unable to search, even though you have court-ordered legal authority to do so. Could you elaborate on how the FBI plans to reduce these barriers? How these barriers affect your ability to conduct counterterrorism investigations? And how can this committee help you on that? And please tell me more about the 80 new positions you plan to create to combat this going dark issue, will these new positions specifically support intelligence analysis to combat the problem? Mr. McCabe. Yes, sir, they will. Let me touch on the going dark issue to clarify some of the facts that you have referred to. So far, in fiscal year 2017, we have received approximately 7,000 devices with court authorization. The requests come most times from our partners to help them open up the devices they need primarily for their criminal cases in cities and towns across this country. We are currently able to get into about 48 percent of those devices. So a little less than half. As incredibly effective encryption becomes more well-known, easier to get and easier to use, that number, that 48 percent, will continue to decline. That is probably the best example of that piece of the going dark problem. The resources that we have asked for will be folks who will specifically face those challenges. So we are talking about some Special Agents; we are talking about some electronic engineers; we are talking about computer scientists; and we are talking about what we refer to as CART agents, folks out in the field who have the ability to have the tools and the training to help try to get into those things and assist our partners on site. So that is where those resources are going. It will also go to help us maintain systems that we now depend upon to allow our investigators to conduct the work they need to do on the internet in a way that is not attributable to the FBI. Because, obviously, we have to be as good as our adversaries. We have to be on the dark web. We have to be in all those places where we are going to find the threats that face us. So going dark is a multifaceted problem, it is one that will call for pretty tough choices across society in terms of balancing security and privacy. It will call for pretty substantial work, I think ultimately here from Congress, addressing some of the legal frameworks that we have to work with. But day to day, it impacts my investigators and analysts in that way. Mr. Carter. I find that a real challenge. Mr. McCabe. It is, sir. Mr. Carter. Thank you, Mr. Chairman. Mr. Culberson. Thank you very much, Judge Carter. Mr. Kilmer. Mr. Kilmer. Thank you, Mr. Chairman, and thanks for being with us, many thanks to the men and women who work for the Bureau. Mr. McCabe. Thank you, sir. Mr. Kilmer. In recent months we have seen an unprecedented rise in hate crimes. According to one report we saw 1,800 hate crimes in the U.S. between November of last year and March of this year. I notice that the FBI budget request does not explicitly mention any additional funding on this front. I also would point out in May, I received a letter from the Department of Justice stating that the Attorney General has directed the formation of a hate crimes subcommittee of the violent crimes task force to highlight the importance of these efforts. So my questions for you are, one, what funds or resources will the FBI allocate to combat the rise in hate crimes? Does the FBI have a role in that hate crime subcommittee? And if you can give me any indication of the status of how the FBI is engaging with affected communities that are dealing with this proliferation of hate crimes. Mr. McCabe. So our folks do an enormous amount of work dealing with the communities that are touched by hate crimes. It is one of the requirements that I put on all of our Special Agents in Charge to build those sorts of relationships into the communities that are going to put us in a position to be able to help them in many ways, but certainly in that one. Hate crimes are a very big part of our civil rights approach to include color of law issues, clinic access issues and many others. So it is a vital and ongoing effort that we remain completely committed to. With respect to the DOJ Subcommittee, that one I will have to take back to get you the exact details of our participation in it. I would expect that we are playing a key role, but I will have to get back to you with those details. Mr. Kilmer. Is the civil rights division, is that where the funds lie to address this issue or--I notice that there was not any sort of specific language on this in the budget request, so I was just curious whether there are any funds specifically dedicated to combat this? Mr. McCabe. So we do not rely on funding from the civil rights division, but obviously, we work the cases with the civil rights division at DOJ. And our funding, of course, is part of our overall criminal program. How we divide those funds up within the criminal program is up to the Assistant Director of the criminal program. And it is in the base resources request. [The information follows:] FBI PARTICIPATION IN HATE CRIME SUBCOMMITTEE In February 2017, Attorney General Sessions established the Department of Justice Task Force on Crime Reduction and Public Safety. The Task Force will accomplish its work through five subcommittees, including one specifically set forth to address hate crimes. Attorney General Sessions asked Mr. Tom Wheeler (the Acting Assistant Attorney General of the Department's Civil Rights Division) to serve as the Subcommittee Chairman of the task force's hate crimes subcommittee, which includes representatives from the U.S. Attorney's community, the DOJ Community Relations Service (CRS), the FBI, the Community Oriented Policing Office (COPS), Office of Victims of Crime (OVC) and the Criminal Division. The Subcommittee has sought feedback from communities nationwide and during the 2017 Hate Crimes Summit held in Washington, DC in late June. Attorney General Sessions has asked the Subcommittee to explore ways to expand and improve training for federal, state and local prosecutors and investigators on hate crimes; how we can work better with affected communities and our state and local law enforcement partners; and how we can improve our data collection on hate crimes. The Department of Justice is taking action and has prosecuted a number of high-profile hate crimes cases this year as we seek to bring criminals to justice. Finally, Attorney General Sessions has directed all federal prosecutors to make fighting violent crime a top priority, including hate crimes. Mr. Kilmer. I wanted to follow up on the question from Chairman Rogers around cybersecurity. We certainly hear about that a bunch. Congress passed the Cybersecurity Act in 2015, and a big focus of that was on information sharing between industry and law enforcement. I think one of the pieces of feedback that we get from industry, large and small, they comment around small businesses I agree with, is a concern that that sometimes feels more like a one-way street where industry may feedback what they are dealing with, but don't necessarily get a lot back from the government. I guess I would love to just get your sense of how you assess the progress of that law in bringing industry stakeholders to the table with information that could prevent cyber attacks from happening. And then in the other direction, what is the FBI doing to strengthen the flow of information to industry stakeholders? Mr. McCabe. So it is a great question, and it is one that we get very often as well. I think in summary, I would say we are better than we have been, but we are clearly not good enough. We have all the traditional challenges that we always face in sharing information, particularly in the cyber area, when so much of it comes to us through classified channels. It is hard and slow to cull out that which we can share to be effective. And so often, our sharing is not timely, and the private sector moves at a much quicker pace. So that is really where we need to work. I think the interactions that we have with the private sector are more productive today than they were 2, 3, 4, 5 years ago, but we still have a long way to go. There are many reasons why our private sector partners don't wish to share with the FBI or anyone else for obvious economic, and productivity, and reputational reasons. So it has been a slow, kind of chipping away at some of that resistance. And also, adapting our own approaches to be able to get on site, to help them handle a crisis or an issue in a way that is as discreet as we can possibly be. So I think those are the areas we have to work on. I think the legislation gives us good footing to start, but we clearly have a lot of work to do. Mr. Kilmer. Thank you, Mr. Chairman. I yield back. Mr. Culberson. Thank you, Mr. Kilmer. Mr. Jenkins. Mr. Jenkins. Thank you, Mr. Chairman. Director, thank you for being here. I am from--represent southern West Virginia, and like Chairman Rogers from Appalachia, the drug epidemic has just ravaged many of the communities. Mr. McCabe. Cities. Mr. Jenkins. You raised a point ago when asked about the southern border, and you specifically talked about five field offices. And I think you were sending the message that we kind of have a footprint where boots on the ground where it is most needed. Mr. McCabe. Yes, sir. Mr. Jenkins. I think four, if I am accurate, four of the highest overdose counties in the entire country are in my district. We don't have a field office of the FBI really down deep in the hardest hit areas of West Virginia. And through a discussion with Special Agent Johnson, I understand there is, at least, some willingness and openness of the FBI to look at putting a field office in the hardest-hit impacted areas. Can you update me on your assessment of that? And is that a possibility, because I certainly hope it will be? Mr. McCabe. Yes, sir, it is, certainly a possibility. And it is one that we are discussing actively right now. Because you know, we formally had not had a field office, but a resident agency, which is kind of a satellite of a field office. In this case, it would be a satellite out of our Pittsburgh Field Office. We had one in your area, and we went through a process years ago, but ended up folding that office. We are back in that process now. We are actively discussing reopening that RA. Once we have made our decision, we communicate that, of course, to DOJ and work with OMB to get that done. And so, I can assure you that we will continue to push. But we recognize the significant challenges that your constituents are facing with the opioid epidemic. We also know there is no presence of other Federal law enforcement agencies in the area, and we see that as a massive gap. Mr. Jenkins. I appreciate your interest and the sincerity to attack crime where it is happening. And this tragic opioid epidemic has just ravaged our area. I was looking at your going dark testimony, and I was struck by the emphasis on talking about crimes and identities that lay behind our--behind layers of anonymity, relating to online pedophiles. And when I was a State legislator in West Virginia, and this was the old days, back when really Facebook was the existence of social media, we had a sex offender registry, like probably every other State. But I lead the effort to actually require sex offenders, once convicted, to turn over to the registry their online screen names, passwords, et cetera. And our State database created a system where a parent, empowered to try to go in and say, here is a user name or a screen name that is communicating with my son or daughter, to identify whether or not that was in the database. I am all about trying to create tools, whether it be at the State level or Federal level, to empower parents to help protect their children. We are struggling in this world as you talk about online pedophiles. What, at the FBI level, what sort of tools that you can talk about that are in place to take these, even convicted sex offenders, and make sure we empower parents and try to protect our kids? Mr. McCabe. Yes, sir, great question. That is a threat and a space within which the threat operates that is more challenging every day with the profusion of anonymity through things like the onion router, and the use of encrypted communications. All of those same things that challenge us in the other areas of our business challenge us there. And it is one that impacts us so deeply, not only as FBI agents, but as parents ourselves. So we remain absolutely committed to doing everything we can. Unfortunately, that has required, in the last several years, a new cutting-edge technical approach to many of those problems. And so it gets back to the same challenge that we have in the cyber area, in the CT area, in the CI area. And it is getting the right talented computer scientists and very highly skilled folks engaged in that fight to help us get through the walls of anonymity so we can actually see who is on the other side interacting with our children in damaging ways. So we are absolutely committed to that work, but it is getting tougher and tougher as the ways in which people communicate over the internet become more protected and more remote. Mr. Jenkins. I look forward to working with you in addition to the investigatory identification work that you are engaged with. I am looking for those tools to empower parents to also do what we can as engaged parents to try to help create a safe environment. We know it is a challenging world, we appreciate your commitment to it. Thank you, Mr. Chairman. Mr. Culberson. Ms. Meng. The gentlelady from Long Island. Ms. Meng. Thank you, Director McCabe. On June 27, 2016, the DOJ announced a new department-wide training to help agents and prosecutors learn how to recognize and address unconscious biases, those subtle associations that some individuals might make between groups of people and stereotypes about certain groups. What is the status of these trainings at the FBI? And what percentage of your agents have received this training? And when can we expect these trainings to be completed? Mr. McCabe. Yeah. So I will have to get back to you with the numbers and the exact percentages and when those are completed. I know that we have done a lot of work in the last year on getting that training out to our folks. I know that it has been mandatory for all of our folks. I know that it was mandatory for executives--I know it because I attended it with our entire 7th floor team a few months ago. So it is out, and our folks are getting it, but I will just have to get back to you with the numbers. [The information follows:] UNCONSCIOUS BIAS TRAINING The FBI began delivering Unconscious Bias Training to its workforce in July 2014, with a target audience of supervisors and managers. In October 2015, the FBI amended its target audience to all new employees, including new Special Agents. Currently, training has been provided to employees in 39 of the FBI's 56 Field Offices and 11 of the FBI's 22 Headquarters Divisions. As of June 2017, over 6,800 FBI employees have been trained. Based on resource availability, the FBI plans to continue to deliver training to all FBI employees, with the eventual goal of having the entire FBI workforce trained in the next few years. Ms. Meng. Thank you. Last September, former Director Comey, while testifying in front of the House and the Senate, committed to the creation of a nationwide database to gather information on police-involved shootings. He committed to seeing this project through for the length of his term as FBI Director. And he stated that the database should be up and running in a year or two. What is the status of this database, and when can we expect it to be up and running? Mr. McCabe. So we have continued to do that work with the Use of Force Task Force, and it is moving along well. We, in fact, just stood up the pilot of the database that you referred to, I think just within the last few weeks, if I have that correct. So our commitment to that effort continues as does our commitment to the NIBRS, National Incident-Based Reporting System. We across the law enforcement community need better data. I think most people recognize that now. It is a little bit challenging in terms of resources and commitment to get folks to sometimes to do the work that we need to get there, but we are committed to staying on that timeline and having this done by 2021. Ms. Meng. Thank you. I yield back. Mr. Culberson. Thank you, Ms. Meng. Mr. Cartwright. Mr. Cartwright. Thank you, Mr. Chairman. And thank you for being here, Mr. McCabe. I want to ask a question about the-- kind of the authority and independence of the FBI. Mr. McCabe. Yes, sir. Mr. Cartwright. I would be interested on your take on the matter. While the FBI operates as part of the Justice Department, of course, due to the nature of its work, it has historically been seen as relatively independent. The FBI Director is also considered one of the most independent officials in the Federal Government. Would you agree with that? Mr. McCabe. Yes, sir. Mr. Cartwright. Mr. McCabe, several measures have been put in place to preserve the independence of the FBI, including the 10-year term for the Director. My first question is: Do you believe that maintaining a relatively independent FBI is important to the integrity of the work that you conduct? Mr. McCabe. Yes, I do. Mr. Cartwright. The constitutional reality is that if a Government official is appointed within the executive branch, that official serves at the pleasure of the President. But unofficial norms emphasize that law enforcement should be politically neutral. What is your take on how you reconcile those two realities, Director? Mr. McCabe. Well, I think we have a long history of pursuing our work at the level of professionalism and an independence from political influence. I have no reason to believe that that approach will discontinue. I believe, as you stated, it is vitally important to have a politically independent FBI, and I have no reason to believe that that won't be the case. Mr. Cartwright. Are you aware if it is written down anywhere, what the conditions would be under which the President would relieve the FBI Director of his or her duties before the 10-year term is up? Mr. McCabe. Well, I don't know where it is written down specifically, but it is my understanding it is the President's privilege to relieve any political appointee when he chooses to do so. Mr. Cartwright. Do you have a view about what conditions would be appropriate for the President to relieve the FBI Director before the 10 years is up? Mr. McCabe. Well, again, sir, I don't really have a view on that. I am not going to weigh in on Presidential privilege and how the President decides to remove his appointees. Mr. Cartwright. Well, you look like a smart man. Mr. McCabe. Looks can be deceiving. Mr. Cartwright. I know the dedicated public servants in the FBI will continue to do their work regardless of political pressures and turnover in the Director position, and whoever happens to be in the White House. But I want to ask you, how has the removal of James Comey affected morale at the FBI, if you can comment on that? Mr. McCabe. So, as I said at the beginning of our hearing, Director Comey enjoyed a great relationship with the men and women of the FBI. So his removal took many, many people by surprise. It was a shock. It is something that we have all had to come to terms with. However, as the organization responsible for upholding the Constitution and being dedicated to nothing other than the rule of law and protecting the American people, we understand the rules and how they work, and we understand that it is the President's privilege to remove the FBI Director or any appointee whenever he chooses to do so. He has chosen to do that. We know we are getting a new FBI Director. It has been my challenge to keep folks focused on the mission during this time of transition, and to prepare the ground for the new Director whenever he or she gets there. Mr. Cartwright. So other than morale, what other effects do you think that removal has had on the ability of the FBI to carry out its crucial functions? Mr. McCabe. The FBI continues to carry out its crucial functions, and we will continue to get that work done. You have my word on that. Mr. Cartwright. I will take it. Thank you, Director. Mr. Chairman, I yield back. Mr. Culberson. Thank you, Mr. Cartwright. They have called votes. There is about 8 minutes left. I want to just very quickly ask you, Director McCabe, if you could--insider threats are very dangerous, leaks of classified information can be immensely damaging to this country as we saw with Edward Snowden. I was very pleased to see an NSA contractor, Reality Winner, being prosecuted. Would you please speak directly to everyone in the Federal Government and tell everyone out there how serious a crime is it if you leak information about an ongoing investigation, and give us the assurance that the FBI will pursue every one of these leakers, and seek their prosecution to the fullest extent of the law. Mr. McCabe. Yes, sir. Leaking of classified information is a Federal crime, and it is one that we have the jurisdiction to investigate. And I assure you we will do so in every single case that gets referred to the FBI by the Department of Justice. That is, of course, how that process works. It is absolutely vital to the safe functioning and the national security of this country to be able to handle classified information in a responsible manner in the way that it was designed to be handled. When we have folks who are mishandling or leaking or sharing classified information in ways they should not, we will investigate those matters as they should be investigated. Mr. Culberson. How many years in prison can people face? Mr. McCabe. Oh, that is a good one. I think, it depends. Most of the cases either come down to mishandling cases or actual espionage cases, so there is a wide range there. Espionage, of course, can get you life in prison. Mishandling cases, I am not sure exactly what the sentencing range is. Mr. Culberson. It is a long time? Mr. McCabe. It is longer than you would want to be there. Mr. Culberson. And you are going to hunt them down? Mr. McCabe. Yes, sir, we will. Mr. Culberson. Aggressively. Thank you very much. Mr. McCabe. Yes, sir. Mr. Culberson. Mr. Serrano. Mr. Serrano. Thank you, Mr. Chairman. If I could submit this letter from [inaudible] for the record. Mr. Culberson. Certainly. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Serrano. Thank you. The Attorney General has taken some troubling actions in the past few months, in my opinion, to undermine the civil rights responsibilities of the Justice Department, this includes reducing the use of consent decrees and limiting the priorities of the civil rights division. Has there been any instruction given to the FBI to limit investigations into the certain civil rights-related complaints? What about into certain voting rights complaints? Mr. McCabe. No, sir. We have not received any direction like that. Mr. Serrano. None on either one? Mr. McCabe. No, sir. Mr. Serrano. How many civil rights investigations has the FBI opened this year, and how does that compare to the last 5 years? Mr. McCabe. You know, sir, I would have to take a look at those numbers and get those back to you. [The information follows:] civil rights investigations over the past 5 years The FBI has primary responsibility for investigating all alleged violations of federal civil rights laws. These laws protect the civil rights of all citizens and persons within the U.S., and include four major areas: Hate Crimes, Color of Law, Human Trafficking, and Freedom of Access. The FBI takes this responsibility seriously and investigates these violations to the fullest extent possible. The number of Civil Rights cases pursued by the FBI have been fairly consistent over the past five years. In FY 2012, the FBI opened over 800 new civil rights cases. In FY 2016, the FBI opened 768 new cases and ended the year with 1,414 pending cases. However, the number of cases the FBI has open at any given time may not be the best representative of the level of effort the FBI dedicates to combatting civil rights violations. A singular case could involve multiple subjects and even an organized enterprise. The number of arrests has increased over the past five years from 66 in FY 2012 to almost 400 in FY 2016, and as of June 2017, already has 475 arrests in FY 2017. The FBI will continue to dedicate resources to address the Civil Rights threats facing the nation and endeavors to pursue tools and techniques that would make the FBI more effective and efficient in this arena. Mr. Serrano. That is all I have, Mr. Chairman. Mr. Culberson. Director, we sincerely appreciate your service to the country. We will have other questions that we will submit for the record. I, again, want to thank you and all the men and women of the FBI for what you do to keep this Nation safe. This subcommittee will work together to make sure that you have the resources you need to continue to do your job. We thank you very much for being with us here today, sir. Mr. McCabe. Thank you too, sir. And, again, thank you for all the support the Committee has given us over the years and we look forward to working together with you. Mr. Culberson. Thank you. Thank you very much. The subcommittee stands adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]