[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2021 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS SECOND SESSION ______ SUBCOMMITTEE ON THE DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES DAVID E. PRICE, North Carolina, Chairman MIKE QUIGLEY, Illinois MARIO DIAZ-BALART, Florida KATHERINE M. CLARK, Massachusetts STEVE WOMACK, Arkansas BONNIE WATSON COLEMAN, New Jersey JOHN H. RUTHERFORD, Florida BRENDA L. LAWRENCE, Michigan WILL HURD, Texas NORMA J. TORRES, California PETE AGUILAR, California NOTE: Under committee rules, Mrs. Lowey, as chairwoman of the full committee, and Ms. Granger, as ranking minority member of the full committee, are authorized to sit as members of all subcommittees. Joseph Carlile, Winnie Chang, Josephine Eckert, Angela Ohm, Sarah Puro, Rebecca Salay, and Gladys Barcena Subcommittee Staff _______ PART 5 Page Department of Transportation Budget Request ..................... 1 ------ Department of Housing and Urban Development Budget Request ...... 155 ------ Federal Aviation Administration Budget Request .................. 235 ------ [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Printed for the use of the Committee on Appropriations Part 5--TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES FOR 2021 DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2021 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS SECOND SESSION ______ SUBCOMMITTEE ON THE DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES DAVID E. PRICE, North Carolina, Chairman MIKE QUIGLEY, Illinois MARIO DIAZ-BALART, Florida KATHERINE M. CLARK, Massachusetts STEVE WOMACK, Arkansas BONNIE WATSON COLEMAN, New Jersey JOHN H. RUTHERFORD, Florida BRENDA L. LAWRENCE, Michigan WILL HURD, Texas NORMA J. TORRES, California PETE AGUILAR, California NOTE: Under committee rules, Mrs. Lowey, as chairwoman of the full committee, and Ms. Granger, as ranking minority member of the full committee, are authorized to sit as members of all subcommittees. Joseph Carlile, Winnie Chang, Josephine Eckert, Angela Ohm, Sarah Puro, Rebecca Salay, and Gladys Barcena Subcommittee Staff ________ PART 5 Page Department of Transportation Budget Request ...................... 1 ................................. ------ Department of Housing and Urban Development Budget Request ...... 155 .............. ------ Federal Aviation Administration Budget Request .................. 235 ................................. ------ Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PUBLISHING OFFICE 43-030 WASHINGTON : 2021 COMMITTEE ON APPROPRIATIONS ---------- NITA M. LOWEY, New York, Chairwoman MARCY KAPTUR, Ohio KAY GRANGER, TEXAS PETER J. VISCLOSKY, Indiana HAROLD ROGERS, KENTUCKY JOSE E. SERRANO, New York ROBERT B. ADERHOLT, ALABAMA ROSA L. DeLAURO, Connecticut MICHAEL K. SIMPSON, IDAHO DAVID E. PRICE, North Carolina JOHN R. CARTER, TEXAS LUCILLE ROYBAL-ALLARD, California KEN CALVERT, CALIFORNIA SANFORD D. BISHOP, Jr., Georgia TOM COLE, OKLAHOMA BARBARA LEE, California MARIO DIAZ-BALART, FLORIDA BETTY McCOLLUM, Minnesota TOM GRAVES, GEORGIA TIM RYAN, Ohio STEVE WOMACK, ARKANSAS C. A. DUTCH RUPPERSBERGER, Maryland JEFF FORTENBERRY, NEBRASKA DEBBIE WASSERMAN SCHULTZ, Florida CHUCK FLEISCHMANN, TENNESSEE HENRY CUELLAR, Texas JAIME HERRERA BEUTLER, WASHINGTON CHELLIE PINGREE, Maine DAVID P. JOYCE, OHIO MIKE QUIGLEY, Illinois ANDY HARRIS, MARYLAND DEREK KILMER, Washington MARTHA ROBY, ALABAMA MATT CARTWRIGHT, Pennsylvania MARK E. AMODEI, NEVADA GRACE MENG, New York CHRIS STEWART, UTAH MARK POCAN, Wisconsin STEVEN M. PALAZZO, MISSISSIPPI KATHERINE M. CLARK, Massachusetts DAN NEWHOUSE, WASHINGTON PETE AGUILAR, California JOHN R. MOOLENAAR, MICHIGAN LOIS FRANKEL, Florida JOHN H. RUTHERFORD, FLORIDA CHERI BUSTOS, Illinois WILL HURD, TEXAS BONNIE WATSON COLEMAN, New Jersey BRENDA L. LAWRENCE, Michigan NORMA J. TORRES, California CHARLIE CRIST, Florida ANN KIRKPATRICK, Arizona ED CASE, Hawaii Shalanda Young, Clerk and Staff Director (ii) C O N T E N T S ---------- Witnesses Page Carson, Hon. Ben, M.D., Secretary, U.S. Department of Housing and Urban Development.............................................. 155 Answers to submitted questions............................... 191 Chao, Hon. Elaine L., Secretary, U.S. Department of Transportation................................................. 6 Answers to submitted questions............................... 32 Dickson, Hon. Steve, Administrator, Federal Aviation Administration................................................. 238 Answers to submitted questions............................... 261 DEPARTMENTS OF TRANSPORTATION, HUD, AND RELATED AGENCIES APPROPRIATIONS FOR 2021 ---------- Thursday, February 27, 2020 DEPARTMENT OF TRANSPORTATION BUDGET REQUEST WITNESS HON. ELAINE L. CHAO, SECRETARY, DEPARTMENT OF TRANSPORTATION Mr. Price. The subcommittee will come to order. Good morning, everyone. I am pleased to kick off the subcommittee hearing season for this and other subcommittees, by examining the fiscal year 2021 budget request for our Department of Transportation. Secretary Chao, welcome back. And thank you for joining us. Glad to have you here. The infrastructure serves as a foundation for our economy and our quality of life. It facilitates the flow of goods and services, connects people to employment and educational opportunities, and it plays a significant role in our Nation's overall welfare. There is no question our country requires a massive infusion of investment to repair deficient bridges, restore our transit systems to a state of good repair, improve our ports, build new runways for our airports. We must also make forward- looking investments in new services across all modes, including projects that expand inner city passenger rail, and improved options for cyclists and pedestrians, with the renewed focus on safety, on environmental sustainability, and on resiliency in the face of climate change and other perils. On this front it is especially disappointing to see the Department continue to push a deeply flawed rule making seeking to roll back fuel efficiency standards developed under the previous administration. If finalized the proposal would increase pollution and emissions resulting in higher public health expenditures, and cause consumers millions at the pump. I urge the Department to reverse course. After seemingly endless Trump administration infrastructure weeks that have failed to materialize into meaningful action, this subcommittee has done its part to boost investment under both the Republican and Democratic House majorities. During the past 3 years, beginning out of the chairmanship of my good friend, Mario Diaz-Balart of Florida, we have appropriated nearly $16 billion above authorized levels for highways, transit, rail, maritime and aviation infrastructure programs. I am proud of what the subcommittee and its members have achieved, at the same time, you know, we often call this a down payment, I think that is inadequate, and an apt metaphor, it is a down payment, but it is not the comprehensive infrastructure approach we need. We all know that. We need to find real pay force to balance the Highway Trust Fund, and to put us on a more sustainable path forward. As part of the budget's submission, the administration has put forward $810-billion 10-year reauthorization proposal. This is certainly an improvement over previous plans that relied on unrealistic assumptions about private investment, and sought to push cost onto cash-strapped states and localities. But it falls short still of the levels proposed by transportation leaders in the House and Senate, and the plan lacks significant details about policy programs, and most importantly, how all this is going to be paid for. It is one thing to keep our options open, although the expiration of the FAST Act already upon us, the President needs to get serious about negotiating with Congress and finding new revenues for the infrastructure that virtually everyone agrees is necessary for our shared prosperity. Turning now to the administration's fiscal 2021 budget request, the Department proposes roughly $89 billion in total budgetary resources which is $2 billion or 2.3 percent more than the fiscal 2020 enacted level. However, the request for discretionary budget authority is $21.9 billion which is $2.9 billion, or 12 percent below the current year. That is a strange move for a President who has posed as the champion of infrastructure. There are some bright spots, including another robust request for the oversubscribed TIGER/BUILD Grant Program. I am also especially pleased to see funding for new transit projects in the Capital Investment Grant pipeline. I will note, however, that the CIG Program at the end of the 2019 fiscal year had roughly $1.2 billion in unallocated and unobligated carryover funds. Combined with the fiscal 2020 funds that we just appropriated, that total rises to about $2 billion, essentially a full year of CIG appropriations. We know there are many worthy transit projects across the country seeking this funding. We need additional assurances backed by action that the Department will administer this program in an expeditious manner, consistent with congressional intent. I also have serious concerns about the treatment of rail programs in the budget, which would slash investment in Amtrak's busy Northeast Corridor, eliminate the Federal-State Partnership for State of Good Repair, and shift the cost of long-distance service onto the states. These proposals were roundly rejected on a bicameral, bipartisan basis this year. We had hoped they wouldn't recur in the budget request. Unfortunately, the budget also eliminates the popular Port Infrastructure Development Program, it cuts NHTSA's vehicle safety programs by nearly 10 percent when we were grappling with new safety challenges posed by automatic vehicles, large trucks, and distracted driving. And finally, while their request would eliminate supplemental airport grants, it does propose $35.5 million to augment FAA aviation safety activities in the wake of the Boeing MAX disasters. There are new talents with critical skills, to increase oversight, and to bolster data analysis. We provided similar investments in the Fiscal 2020 Omnibus package, to ensure that our skies remain safe for the flying public. We need to learn more about this proposal, and how the agency plans to use these resources. So, Secretary Chao, we look forward to your testimony today, in working with you to ensure that DOT has the funding that it needs to carry out its critical mission. I would now like to turn to our distinguished Ranking Member Mr. Diaz- Balart for any remarks he wants to make. Mr. Diaz-Balart. Thank you very much, Mr. Chairman. And thank you for holding this hearing today. This is the first of our fiscal year 2020-21 budget hearings. And if this is anything like last year, it will be a great hearing season under the chairmanship of Mr. Price. I would like to say, Mr. Chairman, you are the second-best chairman of this subcommittee. All kidding aside, he has done a phenomenal job and this has been an attitude of working together, it has really been a partnership, and I am grateful for the way that you have handled your chairmanship, sir. Secretary Chao, look, I just need to thank you again, and welcome you back to the subcommittee. This is the fourth appearance before the THUD subcommittee of this remarkable public servant. Since your first appearance before us in 2017, together we made some significant progress, improving our Nation's roads, railways, seaports and airports. In recent years when we have had these budget negotiations, dealing with the budget caps, they have emphasized infrastructure investments, and the largest portion of new infrastructure investments have been at Department of Transportation, that you so ably, frankly, lead. And I have to tell you, you have been a remarkable partner in this effort. I have said this to you privately, and I expressed it publicly before, but I think it merits being repeated. As well as your team, by the way, and your staff, they have done a remarkable job working day in and day out to get those resources to our states, and to our localities, but doing so while protecting the taxpayer in an efficient manner. And so, both you and your staff I think have done a remarkable job. Our communities are already seeing the results. As you know, Madam Secretary, that these investments improve transportation networks that help our businesses create jobs, and improve the quality of life of the folks that we represent. Madam Secretary, you help to celebrate one such example. Just earlier this month in Florida, when you announced a grant for Port Miami, which will dramatically, dramatically increase the capacity of the port to, again, provide the economic benefits for the entire region. And I want to paraphrase it, you have said it many times, my staff reminds me all the time. At another hearing here, you talk about how ports are the engine of economic growth in our country, and it is so true. Again, thank you for your vision and leadership on this project, Madam Secretary, and for working with this subcommittee to roll out what is really a new port program, infrastructure port program development that was created by this subcommittee. And so again, no surprise, you have done a great job in rolling out that new program. I am pleased to see that your budget's request, it places very high priority on DOT safety mission, the request of the Federal Aviation Administration of $17.5 billion, including full support for the Air Traffic Controller workforce, and targeted investments for aviation safety. The FAA facilities and equipment programs would receive $3 billion in that budget, which will help us continue to modernize air traffic control system. Again, this will improve both safety and efficiency which has a high priority of both the chairman, and myself, and clearly it has been your priority as well, Madam Secretary. Transit Capital Investment Grants are slated to receive $1.9 billion in our request to meet all commitments on currently-funded grant agreements, and an additional $775 million for new projects that are expected to be ready for a grant agreement in 2021. Now, I will tell you that working with my constituents in Southern Florida and parts of Miami, I have seen firsthand how complicated transit projects are to come together, and I am pleased that we have such a strong, strong Federal partner in that effort. I believe this subcommittee has a special role to play in advancing our shared priorities for transportation infrastructure. In fact, I have said repeatedly that the THUD bill, and Mr. Chairman, you have said it as well, right, and you mentioned it a little while ago, frankly is the infrastructure bill until something else may hopefully come along. This is evident in the major investments that we have made in recent years through this subcommittee. Now I, however, recognize that there is a major task ahead of us, as we face the expiration of the FAST Act at the end of this fiscal year. Madam Secretary, you have outlined a really bold proposal, of in essence a trillion dollars in new surface transportation investments over the next 10 years. I know you are working through the details of this legislative proposal, and I look forward to hearing about those efforts today, and in the months that come, and working with you on, again, what is a very, very, very bold proposal. Our infrastructure investments over the next decade will help determine America's role in the world for the next century. The task clearly will not be easy. So, I will again, as we always have, call on my colleagues and the administration to come together, and do this jointly for the good of the American people, again, to get this job done. I am grateful, Madam Secretary, for the attitude that you have always had of inclusiveness, of thinking outside the box, of looking at things in new and fresh ways, and not just assume that because they were done some way for so many years, that that is the best way to do that, and I have no doubt that that tradition that you have brought to the leadership of your position will continue to bear fruit for the American people. So, again, thank you, Secretary Chao, for your appearance today, but more important for your service to our Nation. And with that, Mr. Chairman, I yield back. Mr. Price. Thank you. And now we turn to the chairwoman of our full committee, Mrs. Lowey. The Chairwoman. Thank you very much, Chairman Price, and Ranking Member Diaz-Balart for holding this important hearing. And welcome, Secretary Chao, and thank you for being here today. Secretary Chao, you and I had a very productive meeting 2 weeks ago, and I was very impressed with your candor, your knowledge, your willingness to work in partnership. It is my hope that we can maintain and grow this very positive relationship; and thank you for being here today. However, I must note several gross inadequacies in the budget, including a $374.5 million decrease for Northeast Corridor grants to Amtrak, a $90 million decrease to capital investment grants, elimination of Federal State partnership for state of good repair grants. No proposal to pay for crucial spending for roads, bridges and transit that comes from the highway Trust Fund. These decreases and eliminations would seriously jeopardize safety of the traveling public. These proposals are posed by the American people, and bipartisan majorities in both chambers. While this proposal was better than in previous years, the committee will continue prioritizing safety. As I mentioned during our meeting, I am very pleased that the Department has made the Portal North Bridge eligible to advance toward funding. And I look forward to seeing that happen soon, and I thank you very much for your efforts. However, neglecting to advance the Hudson Tunnel project is a political decision that endangers the safety of travelers who pass through the tunnel every day. Our current infrastructure is in such desperate need of repair, by preparing for the future must also mean ensuring continuity of service, sustaining safety and increasing capacity. An unplanned closure of the Hudson Tunnel would be disastrous for our economy, and disrupt the lives of hundreds of thousands of daily commuters. In fact, closure of one of the 2 tubes in the existing tunnel, a partial shutdown, has been estimated to cost the national economy $16 billion. The bottom line is that while the Hudson Tunnel project, an entire gateway program, is integral to New York and New Jersey, it is so much more than that. If we don't make the necessary investments in the gateway program today, our Nation's greatest economy and security will suffer. So, I look forward to a productive discussion today. This budget request, however, does not reflect the good work that I know we can do together. Congress has consistently rejected the administration's proposed cuts that would shortchange our national infrastructure, instead passing responsible funding levels. So, I want to thank you again, for being here today. I look forward to your testimony and I look forward to working together. Thank you. Mr. Price. Thank you. I now recognize Ms. Granger, the Ranking Member of the full committee. Ms. Granger. Thank you very much. I would like to thank Chairman Price and Ranking Member Diaz-Balart for holding this hearing on the Department of Transportation's fiscal year 2021 request. Welcome, Secretary Chao. It has been a great honor to work with you over the years, and particularly as your role as Secretary of Transportation. But I remember beginning as a first year member of Congress bringing an almost impossible request for my district and you made it possible. And I never forget that ever, nor does my district. I live in the fourth largest metropolitan region in the country, and transportation is greatly important to my constituents. I appreciate the work that you and your staff have done to make life better for the people who live and work in my district. I appreciate this Administration's emphasis on reducing regulatory burdens and cutting red tape, and I look forward to hearing what you have to say about those efforts. I also appreciate the safety of our highways and our railroads and air traffic system. It remained a major priority. I know you personally focused on DOT safety mission. I look forward to hearing more about your achievements in that area as well. We all know there is much work to be done to build our infrastructure and ensure the safety of our roads and our railways and our skies. I look forward to hearing from you and how we can continue to work together to achieve these goals, the responsible investment in our Nation's infrastructure, Secretary Chao. Thank you for your continued work and the help you give to people like me. I look forward to hearing from you. Mr. Price. Thank you. Madam Secretary, please proceed. We will of course place your entire statement in the record, but we will look forward to your presentation for 5 minutes or so and then we will have plenty of questions, so please proceed. Thank you. Secretary Chao. Thank you Chairman Price, Ranking Member Diaz-Balart, chairman and ranking of the full committee for being here, members of the subcommittee. Thank you for the opportunity to discuss the President's Fiscal Year 2021 budget request for the Department of Transportation. The President is requesting a total of $89 billion to support transportation programs, an overall 2 percent increase above funds provided in the Fiscal Year 2020 Appropriations Act. This represents the largest increase in the budget of the U.S. Department of Transportation. This funding will enable the department to continue our important work in providing Americans with safe and dependable transportation, help deliver infrastructure more quickly, and prepare for the future in an era of rapid innovation. The President is requesting $1 trillion to rebuild, restore, and renew our Nation's infrastructure. And this request includes 2 parts. First, the President's budget envisions a 10-year surface reauthorization proposal that will provide a historical $810 billion for surface transportation. And then secondly, $190 billion for other infrastructure improvements, including bridges and freight bottlenecks. And this comprises the $1 trillion infrastructure proposal that this Administration has. In this proposal we recommend an authorization that provides for more flexibility for the states and other stakeholders, it includes program and policy changes that will help deliver modern infrastructure more rapidly while ensuring that both rural and urban areas receive the assistance that they need. In addition, it provides significant investments for rebuilding and repairing highways and bridges by using flexible grants and modern innovative finance tools that will help to get projects moving more quickly. It is also time to end the unreasonable delays that are keeping communities from getting the infrastructure that they need. So the department's discretionary grant programs address a wide variety of infrastructure needs benefiting both urban and rural areas. And towards this end the President's discretionary budget includes $1 billion for the Infrastructure for Rebuilding America, or the INFA Grant Programs. And it includes an additional $1 billion for the better utilizing investments to leverage developments or build grant programs. And with respect to transit, the President's budget includes nearly $1.9 billion for the Federal Transit Administration Capital Investment Programs, the CIGs. This request funds the current portfolio of transit projects that have signed full funding grant agreements. And in addition, it provides another $925 million for new projects that may become eligible for funding during fiscal year 2021. Again, this is one of the highest funded budgets for Federal Transit Administration. Turning to aviation, the President's budget recommends $17.5 billion for the Federal Aviation Administration. This includes nearly a billion dollars across the programs to support the ongoing work of NexGen. The President's budget also commits $1.5 billion for aviation safety. And this includes an increase of $37 million to fund targeted investments to improve FAA's ability to respond to specific issues, like Boeing 737 MAXs, analyze safety trends, and improve accountability. These funds will also be used to establish a centralized organization designation authorization office. And the President's budget, once again, includes $300 million for the National Security Multi-Mission Vessel Replacement Program. And this program continues the administration's effort to replace the aging school ships for our State maritime academies. Turning to rail, I also want to highlight some key actions that the department is taking to advance the restoration of assets in the northeast corridor. First, the FRA will release an environmental assessment for the replacement of the Sawtooth Bridge in the near future. This bridge, a component of a Gateway Program, is a key choke point for the northeast corridor, transiting about 350 trains each day. Second, due to a lot of hard work on the part of New Jersey Transit, the Portal Bridge Project Proposal just achieved a medium/high rating for the first time. And the Federal Transit Administration has been working closely with the project sponsors since the new rating makes it eligible to advance. And they are working to resolve final details in order to move the project into engineering. Finally, I'm pleased to report that the department is working closely with Amtrak to advance rehabilitation work on the existing Hudson Tunnel, also known as the North River Tunnel. Given the time, the cost, and the complexity of building an entirely new tunnel, the department is working with Amtrak to design and validate a faster and more cost effective method to improve safety and functionality in this tunnel as the first order of business. So beginning rehab work in the near term is a right move, and not waiting years for the construction of a new tunnel beforehand. So new and innovative methods for repairing the North River Tunnel, the Hudson Tunnel, while still in operation, could allow Amtrak to commence repairs in this tunnel as much as 10 years ahead of schedule. So these are some of the key programs included in the President's fiscal year budget request. Thank you, Mr. Chairman, for the opportunity to appear before you today, and I will be happy to answer any questions that you and other members may have. Mr. Price. Thank you very much. And I want to lead with a question of some urgency. It involves the coronavirus outbreak and your department's role in the response effort. There are a number of aspects of this that I would appreciate your touching on. How is the department coordinating with other Federal agencies, including the CDC and the State Department, to respond to the outbreak? How are you engaging with airports, airlines, mass transit agency and other transportation providers to ensure that the right data is collected and shared? How are you engaging with your international counterparts? And most importantly, how are you communicating with the traveling public? Secretary Chao. Mr. Chairman, thank you for the opportunity to answer those questions because they are certainly very important. And as you mentioned, the department is a member of the coronavirus Taskforce, the main responsibility for coordinating response and efforts on this issue is DHS, Department of Homeland Security, and of course Health and Human Service Department, along with CDC, Center for Disease Control. So for the Department of Transportation, that coordinating role is one that deals primarily with, as you mentioned, airlines, both domestic and international, and working with DHS at ports of entry, and also working with the international agencies. So that coordination role has included being involved in the air bridge to bring thousands of American citizens, nationals, safely home from China and Japan, to continue air and cargo traffic between the United States and China, free health screening at 11 designated airports in the United States for American passengers who have traveled in coronavirus stricken areas. Four, we have been involved in health protocols to protect the crews of aircrafts continuing to fly between the United States and foreign designations. And five, health messages about the coronavirus for airlines to inform their passengers. And as the President says, these containment measures have been effective, but we must be vigilant and plan for the possibility of community-based transmission in the United States. We will be coordinating similar efforts with transit stakeholders as part of this whole of government plan as well. Mr. Price. Will you say something about the international community, the international counterparts that you are working with? Secretary Chao. We work with our counterparts, international counterparts. DHS, and of course HHS and CDC work with theirs as well. But we work with the aviation industry internationally to work on screening incoming passengers at foreign airports, so this means that we have to deal with international aviation authorities overseas. And to date approximately 15,000 returning American nationals have been vetted. And we have also DOT transportation department, has also worked with international health agencies to distribute health information, placards, brochures to passengers and cargo airlines that continue to provide services between the U.S. and China. We also work with international maritime organizations as well, although that is not our main equity. The Coast Guard and DHS has the bulk of the responsibility in dealing with cruise ships, for example, that come into the United States. Mr. Price. Well thank you. We appreciate that update and those efforts. And I think we are all coming to realize what we have got to prepare for here. We hope for the best of course, but prepare for the worst. And your department is going to be on the front lines of the effort, as are the transportation providers that you work with. I will turn to Mr. Diaz-Balart next. I have of course other questions, but we will defer and move on with our Ranking Member. Mr. Diaz-Balart. Thank you, Mr. Chairman. You are putting me on the spot by speaking less, not taking a lot of your time, right? And again, thank you, Mr. Chairman, for bringing up the coronavirus issue. And again, Madam Secretary, obviously for the fact that you are clearly on top of it. Let me just switch the conversation to a totally different area, which is the South Florida Air Space Redesign, known as Metroplex. So I understand that the FAA is about to undertake an air space Metroplex resign in Southern Florida with potential airplane noise impacts on communities around Miami International Airport. So let me throw 3 questions at you, Madam Secretary, if I may. In essence, what is the schedule for this air space redesign, if you have that? What are the FAA's plans to engage the community on the noise impacts of this redesign? And also, will the FFA dedicate staff potentially to engage with affected communities in the greater Miami area? Secretary Chao. Mr. Ranking Member, anything in Southern Florida is a priority for us. Mr. Diaz-Balart. Can I interrupt you? By the way, you have demonstrated that and I am very grateful. Thank you. Secretary Chao. Currently the South Central Florida Metroplex is in the evaluation stage with the draft EA, Environmental Assessment. We expect, hopefully, later this spring, early summer, around, hopefully, May 2020. And then the final EA and corresponding record of decision, which is 2 very important co-joined events on the project, is tentatively scheduled for early fall, 2020. Implementation procedures are expected in April, June, and August 2021. So we are working closely with South Central Florida Metroplex. If everything goes according to schedule I think you can expect that. And as for needed personnel, we have assigned, we believe, the needed staff to pay attention to this and make sure that it is on track. Mr. Diaz-Balart. And again, your staff has been amazingly accessible, as you have personally. So obviously I look forward to, as that process continues, to stay in touch with you. And I am glad the ranking member of the full committee is here because in the 2020, again, totally different issue, dealing with China now. In the 2020 National Defense Authorization Act it included the Transit Infrastructure Vehicle Security Act. This legislation prohibits Federal Transit Administration funds from being used to purchase rolling stock from China state-owned or supported companies. That probation takes in effect on 2021. The reason that I am glad that the ranking member is here is because that is an effort that you started in the Appropriations Committee, and low and behold it started getting more and more support, for obvious reasons. So I am grateful to you for your efforts. I put it in the subcommittee here with the chairman's help and everybody else. But that was your effort and, again, a very important effort. This legislation obviously received bipartisan support. And it will provide, you know, critical economic national securities protections for the rail industry in our transit system and infrastructure. Obviously I have had long-standing concerns about that issue is well, and which is why I worked again with Ms. Granger and the members of the subcommittee on that issue. So now 2 months have passed since the NDA enactment, and I am hearing concerns that transit agencies are unaware of how this law will affect their current and future procurements. Just, Madam Secretary, have you had an opportunity to look at that, and what steps is DOT taking to comply with this legislation, what has the department done to date to inform those transit agencies of the prohibition? Because obviously some might get impacted. This is a national security issue. And I am glad that took place, but I want to make sure that the transit agencies around the country are aware of it. Secretary Chao. We are very much aware of this issue. Obviously this is an important issue with implications that you have just mentioned. The FTA is currently working with the U.S. Trade Representative's office to confirm which countries are impacted by NDA language, and develop direction and guidance to inform FTA grantees of these procurement restrictions. So we are in the process of preparing that plan. And then FTA will likely use its certification and assurance processes to enforce this provision as well. So this is a top of center issue, we are very much aware of it. And obviously it is very much in the press as well. Mr. Diaz-Balart. Thank you, Madam Secretary. Mr. Chairman, in the 8 seconds that I have left, I am also concerned about airports purchasing passenger bridges from, again, state-backed enterprise from the Chinese regime. And I will spend some time with you, Mr. Chairman, on that as well. Thank you for your help and your leadership. And, Madam Secretary, it is an issue that I will also bring up to you and your staff when we have a little bit more time. Thank you so much. Thank you, Mr. Chairman. Mr. Price. Thank you. Mrs. Lowey. The Chairwoman. Thank you, Mr. Chairman. Secretary Chao, good to see you again. I want to make it clear that no one disagrees that the existing Hudson Tunnel is in need of rehabilitation. The tunnel opened in 1910, that's 110 years ago, and was damaged during Super Storm Sandy. But rehabilitating the existing tunnel does not increase capacity. It is important, and I thank you for your work, but it does not increase capacity on the northeast corridor. So, without a new tunnel and two new tracks, bringing the system to four total, the bottlenecks will continue to limit Amtrak and commuter rail which prevents economic growth throughout the northeast. So, as we have discussed, just rehabilitating the current tunnel is a non-starter. So, Madam Secretary, I am pleased the Portal North Bridge, a key component of the Gateway program to remove rail bottlenecks along the northeast corridor, is now eligible to move forward in the Capital Investment Grant process. However, in the last year, FTA has finalized only two full-funding grant agreements for new start projects, none for core capacity projects. Key projects like Portal North and Trans Bay in California are waiting. There are more than $600 million in core capacity funds that this committee has appropriated which FTA has not even allocated to projects. We increased FTA's budget last year so it could process these projects more quickly. So, Madam Secretary, what concrete steps is FTA undertaking to hasten the approval of new starts and core capacity projects other than small starts projects? Secretary Chao. Thank you very much. Thank you for giving me the opportunity to clarify that point. I did not say that we do not need a second tunnel. Right now, the plan is to build a second tunnel, which will take 7 to 10 years, and then go back and rehabilitate the current tunnel. And what we are suggesting at the Department is can we not do this concurrently, take a look at the existing tunnel, repair that while we are preparing for the second tunnel. Having said that, the Hudson Tunnel still has not been able to earn more than a medium-low rating. It has got to get higher. New Jersey did it; and I know the competition between New Jersey and New York is fierce; and so, New Jersey beat New York to this one, and I am sure New York is not very happy about that, but they have got to get their rating up to at least a medium-high for us to be able to talk about further financing. So, if I can clarify that. Thank you. The second thing about FTA, I think the situation is better than what you just painted. The Department was allocated all of $2.5 billion in fiscal year 2017. So, there is, literally, no dollars that is unallocated. Fiscal year 2018, we had $2.6 billion, and we have allocated everything except for 40.7 million; and then in fiscal year 2019, we had a $1.57 billion, and we have allocated all of that, basically; and just last week, we allocated $865 million in fiscal year 2020 CIG Grants. So, since January 2017, this administration has awarded 22 CIG construction grant agreements; advanced 23 projects into CIG project development; and advanced 9 projects into CIG engineering. So, I think, we are accelerating. In the beginning, we were a little bit slow because we were a new team getting into place; but, I think, we can take a look at the figures here. I think you are pretty pleased with what we have done. The Chairwoman. Oh, I see, I am running out of time. I do hope that your plans to continue to repair the current tunnel move forward because it is essential. Secretary Chao. Yes; absolutely. TheChairwoman. I worry about and realize it. Secretary Chao. Absolutely. We are not saying---- The Chairwoman. As I look forward--I appreciated that last meeting we had--and I look forward to talking to you and the Governors of New York and New Jersey and see what we can do to move the whole plan, the project, for the new tunnel as quickly as we can because we know it is essential. So, I thank you. Secretary Chao. Look forward to working with you. Mr. Price. Thank you. Ms. Granger. Ms. Granger. Secretary Chao, regulatory requirements, environmental reviews often delay State and local plans to rebuild infrastructure. I appreciate that the Trump administration is committed to reducing these burdens. Can you outline steps that you have taken to reduce these burdens for DOT's grantees; and what are your plans to make further progress in this area? Secretary Chao. I am so sorry; I did not hear the question. Oh. This is a huge issue, obviously, for all of us; for anyone of us who care about infrastructure. When I go into different communities, I am just horrified sometimes to learn how long it takes for new projects to be moved along and finished. So, this administration has made it a priority to reduce the regulatory burden and streamline the environmental standards without comprising safety or environmental protection. So, the President's one federal decision was an unprecedented level of cooperation and collaboration within the Federal Government Executive Branch itself. And late last year, the Department announced our rule-on-rules that would codify a series of important reforms to the Department's Rulemaking Guidance and Enforcement Practices. As you have heard, the Hoover Dam took 4 years to build. I recently, just last year, 2 years ago, went up to Alaska to give one of the final approvals for construction for the Sterling Highway. It took 37 years. Clearly, that is unacceptable. Communities are not able to function and have the quality of life that they deserve when so many of these projects are so terribly delayed. So, permitting reform and regulatory reform are top priorities of this administration. Ms. Granger. That is wonderful. In an area like I live, the City of Fort Worth is twice the size it was when I was mayor of Fort Worth; and so, that enormous growth, and it has happened all over the Dallas, Fort Worth area, and so to wait for the highways to catch up without a program like you have got would just be impossible to work with. So, thank you very much for that; and I appreciate the explanation. Thank you. Secretary Chao. Mr. Chairman, I also ask that since there is a little lull here, there is also the notice of proposed rulemaking on NEPA reform. I think all of us who care about infrastructure, we will all agree that there can be improvements in NEPA reform without compromising, again, environmental standards, without compromising safety. So, it is a notice of proposed rulemaking, and public comment is welcome. Mr. Price. All right. We will scrutinize that carefully. Thank you. Mr. Quigley. Mr. Quigley. Thank you, Mr. Chairman. Thank you to Secretary Chao for being here. Secretary, you were very public in your criticism, objections, that is, to the FCC's proposal to change how 5.9 gigahertz spectrum can be used. The proposal would shrink the amount of spectrum in the band for our transportation use from 75 megahertz to 30 megahertz, and increase the amount of spectrum available for Wi-Fi. You said that the transportation industry needs all 75 megahertz. Can you explain in a little more detail why the industry requires all of this dedicated spectrum, and what will the operational impacts be to the industry if they have to operate with only 30 megahertz? Secretary Chao. This is a really controversial topic; and, obviously, the real estate on the spectrum is very precious. All I am looking out for is safety; and I just want to make sure that as we enter a new world in which technology takes a greater role in helping us achieve greater safety when there is vehicle-to-vehicle communications going on with Wi-Fi; when there is vehicle-to-buildings, vehicle-to-infrastructures; vehicle-to-everything communications going on with the Wi-Fi that the safety aspect not be compromised and forgotten; and that we have the full real estate that is required. I am not wed; the Department is not wed to any particular technology. There have been technologies that have been talked about in the past. We are not wed to any one technology. We believe that the consumer should decide. Mr. Quigley. And if I could, critics have said that the auto industry has had 20 years to use this and just a little bit now. How do you respond to those criticisms? Secretary Chao. Well, I wonder the same thing as well. I think we should be planning for this; and I want to make sure that the mistakes in the past are not being repeated in the future. And, again, the pace of innovation and technology is occurring very rapidly. I want to reserve the real estate. May I also say, the other thing also, there is some talk about breaking up the real estate, you know, using transportation and safety on this spectrum, 5.9, part of it, and then move on to take another piece of real estate in the spectrum. The problem is we do not know what the ancillary impact would be. The Defense Department and the Commerce Department all have concerns about adjoining real estate for different purposes, uses, what that will do. Will there be bleeding of certain impacts from another use of spectrum bleeding into their sector, whatever it may be. For us, it would be transportation safety issues. Mr. Quigley. So, following that though, if technology is getting so essential, why has not DOT, at this point, moved forward with mandating the use of vehicle-to-vehicle communications technology? Secretary Chao. I do not think mandating will fulfill the goal because the technology is changing so rapidly. Again, we are not wed to any particular. The technology is changing so rapidly; so, I do not think that the Government should be the one deciding what technologies to use; and right now, it is not yet set which technology is best. So, we cannot mandate any particular technology. All we can do, I think, is to reserve the, you know, the spectrum that is deeded. We have an ongoing study. I realize that it is taking a lot longer than we ever expected, but it is a complicated issue. Mr. Quigley. Have you been briefed as to how quickly these services could be rolled up to a significant number of vehicles? Secretary Chao. Yes. Mr. Quigley. And? Secretary Chao. And I am not--I have been briefed by many, many parties, stakeholders. I see no clear answer; I guess is what I am saying. Mr. Quigley. What is the range that you have been told; how long it would take? Secretary Chao. We talked to scientist and they will not even say how much. Some people think 5 years ago that it would have been available 5 years hence, which means today; and clearly we are not. I think one of the largest factors is consumer acceptance. The technology can be there but if there is not consumer acceptance of this new world that we are talking about, then the technological pace was slow. But in any case, there is no set or superior technology that is universally accepted that the Government can say this is the best technology, this is what we will deploy. Mr. Quigley. Thank you. Mr. Price. Mr. Rutherford. Mr. Rutherford. Thank you, Mr. Chairman. Secretary, thank you so much for being here today. I want to start with the safety operations appropriation language dealing with the FRA. There is 225 million committed there, but in 1995, the Republican Congress at that time actually eliminated this user fee that has now been brought back; and we were relying on the private sector safety-related investments in rail infrastructure technology and equipment. Can you give me an idea why the decision was made to bring this fee back now? Secretary Chao. I know that you do not like this fee, and I know that there are others as well; so, as you mentioned, the President's budget does proposed to impose a $50 million user fee that would reimburse the Federal Railroad Administration for the operational cost of rail safety, inspectors, and activities. I think the thinking was that, like other regulated industries, you know, railroads benefit directly and indirectly from the Government's efforts to assure high safety standards and so, therefore, it is appropriate for the railroads to bear some burden, some of the cost structure of ensuring that safety. Mr. Rutherford. OK; thank you. I want to shift gears now and go to some of the traffic safety grants, and I want to thank you, as a first responder myself, for the announcement of the Department for the first responder's safety technology pilot program, the D2X. Long time coming; love to see that it is here. I appreciate that, knowing particularly the number of officers and citizens that we lose every year as a result of high-speed response. And so, I would like to ask, in last year's budget we had asked for the high-risk vehicle events study that would really kind of go along with this, I believe. Any idea where that study is at right now? It was to look at, you know, the fact that we had a 22 percent spike in officer fatalities and citizen fatalities. Secretary Chao. I am not quite sure. I know that we are working on this. In fact, we have a $38 million multi-modal first responder's safety technology pilot program. So, let me take a look at that for you because, obviously, I---- Mr. Rutherford. I was not sure if the program grew out of that study or not because I have not seen the study. But it would make sense. Secretary Chao. Let me take a look at it because I certainly talk about this a lot, about the need to protect our first responders who are putting themselves in harm's way. Mr. Rutherford. Absolutely; and we really do appreciate that. Secretary Chao. Oh, I think--OK. Mr. Rutherford. And, if I could, I want to talk a little bit about our maritime industry and the tremendous support that Florida has received from your office, and recognize, specifically the Jones Act. The fact that $154 billion in total economic output annually from this program $41 billion in labor income for American workers every year. And in addition to that, the Jones Act ensures that our defense capabilities in readiness are not being outsourced to foreign nations. And in my district alone, you know, a $2 billion annual impact from our maritime industry because not only do we have the vessel operators, the marine terminals, the shipyards, all the workers that are engaged in moving the cargo as well. My question is do you see any risk or sense that the Jones Act is in jeopardy of being weakened or dismantled? Secretary Chao. Well, from our point of view, the Jones Act is the law, and we need to comply with it. So, there may be disagreements from time-to-time within the inter-agency work task force on this and, I think, you would know which departments would be at odds; but from our point of it, we are strong supporters of the Jones Act. Mr. Rutherford. Thank you. With that Mr. Chairman, I yield back. Mr. Price. Thank you. Ms. Watson Coleman. Mrs. Watson Coleman. Thank you, Mr. Chairman. It is good to see you, Madam Secretary; and it certainly is good news about the Portal Bridge Project. I would like to know what sort of the next steps, and if you could give us any indication what the timeframe would be for us to see money, to dig a hole, and to make a new bridge? Secretary Chao. Right now, the FTA Administrator, Jane Williams, is talking with the Portal Bridge people and, I think, the details are important. I think it is a very, very positive development that the rating for Portal Bridge has been changed to medium-high. Mrs. Watson Coleman. Right. Secretary Chao. And I have to give New Jersey a lot of credit---- Mrs. Watson Coleman. Absolutely. Secretary Chao [continuing]. because they worked with us on this, and they were listening. So, that is why the rating dropped. So, now it is poised; and Jane is talking with them on some of the details. So, they are on the path to engineering if all goes well with the discussion of those details. And to book engineering, that is a path to financing. Mrs. Watson Coleman. Mm-hmm. There is no way of telling us if we are talking a year in advance, 2 years in advance? This has been such an important project, and it is such a dangerous bridge. Secretary Chao. Well, they have crossed that hurdle. So, it will not be a lack of trying on our part. Mrs. Watson Coleman. From time-to-time it would be helpful if we could, at least the New Jersey delegation, get an update on where we are in this project. Secretary Chao. Of course. Mrs. Watson Coleman. Thank you; thank you. And thank you for the information regarding this sort of new thinking as it relates to the Hudson Tunnel. I really have a couple of questions. Number 1 is I do not understand how the tunnel could be repaired while it is still in service so I don't understand what would be happening. And I really believe that this is new to us and I am going to ask if you would provide a detailed briefing on your plans to the New York and New jersey delegations as soon as possible. Secretary Chao. Of course. Mrs. Watson Coleman. And the third question is, since we are not fully embracing your idea that this one tunnel is sufficient, one of the problems with the issue for the Hudson Tunnel, well, there were two. One was that there was a contention that the financing wasn't in order but thank you, New Jersey is doing its fair share. But the other issue is that the environmental impact statement has been waiting forever and ever and the last time we had an update there were like 27 items that were supposedly identified that needed to be completed in order to have the EIS done appropriately. I would like to know when we are on that as well. Secretary Chao. Of course. We wanted to be responsive on the Hudson Tunnel, even though the Hudson Tunnel, despite a lot of discussion, has not been able to amend or work on their plan so that it meets the medium high rating. This is not a rating that the non-career people do. It really is a career process. Mrs. Watson Coleman. Yeah, I understand that. Secretary Chao. OK. So we are not talking about one tunnel either. So please, I want to if there is anything that I don't want to come out of this hearing it would be that Secretary Chao said there is only one tunnel. No, that's not. We are not saying that at all. Mrs. Watson Coleman. OK, what are we saying. Secretary Chao. OK. So we are still in support of what ever---- Mrs. Watson Coleman. A second tunnel. Secretary Chao. Of course, yes. Because we, as Chairwoman Lowey mentioned, we need to increase the capacity. But right now that plan is to fund the second tunnel which would take 7 to 10 years to build, assuming good conditions and we know the projects are always delayed so that's actually a pretty optimistic viewpoint. Mrs. Watson Coleman. Yeah. Secretary Chao. Then come back and fix the existing tunnel. We actually took a page from Governor Cuomo's plan. He has a project called Canarsie and he hired, he asked the Dean of the Schools of Engineering of, I'll wrap it up, Cornell and Columbia. We want to piggy back on his idea, get those experts to come and look at the Hudson Tunnel to see how we can in the interim repair it and so because the safety is a major issue. Mrs. Watson Coleman. OK. I have 31 seconds. Secretary Chao. OK. Sorry. Mrs. Watson Coleman. With that in mind, we very much want a briefing. Secretary Chao. Yes. Mrs. Watson Coleman. On what that means. Secretary Chao. Yes. Mrs. Watson Coleman. How that would be accomplished, when it would start, how long it would take. But at the same time, we really want to understand our outstanding obligation with regard to the EIS on the tunnel, on the Hudson Tunnel and so we need a briefing on that as well. Because there were specific things that were laid out that were not sufficient but we have gotten no update and I think we need to have the information in order to know when and where we need to go next. Secretary Chao. Well, there seems to be great disagreement as to what the status and so we will be pleased to update you because from our point of view we can't do anything unless and until that rating by Hudson Tunnel gets improved. Mrs. Watson Coleman. Thank you. Thank you, Mr. Chairman. If I had more time I would ask about positive train control but I hope that if I don't get a chance, someone else will. Thank you very much. Mr. Price. And if you can stay around that is good. If not submit a question for the record, we will cover it one way or the other. Mrs. Watson Coleman. Thank you. Thank you, Mr. Chairman. Mr. Price. All right. Mr. Womack. Mr. Womack. Thank you, Mr. Chairman. Thank you, Madame Secretary, for your service to your country and your leadership. I am going to kind of throw just a general question out on the table. As you know, Interstate 49 runs through my district and we were the beneficiaries of a $25 million build grant in the last couple of years that was critical to getting the Missouri portion of this interstate connected with the Arkansas portion of it. Still much more work to be done in the southern part of the area where there is some unmet needs and a major bridge over the Arkansas River. Help me understand the President's policies toward and his interest in making sure that we get funding out in the rural parts of our country. I know he has made it a priority, it is a priority of your administration. What can we do to ensure that rural American which is in desperate need of having the vitalization to build economies and those kinds of things, and there is a lot of good things going on in rural America, but what more can we do? Secretary Chao. You know, I come from rural America. I actually used to be from New York but I am a, now a Kentuckian, a proud Kentuckian. And rural America is not looking for a handout. Rural America is just looking for equity and parity. And in previous administrations, the rural areas of our country have been long neglected. Prior to 2017, 70 percent of transportation dollars went to urban areas. 19 percent of our population live in rural America and yet 46 percent of fatalities and accidents occur on rural roads. Even though they're in rural America, 44 percent of urbanites, urban residents travel on rural roads and the majority of our freight movements occur on rural roads. So it is absolutely essential that the needs of rural America be addressed plus bridges that are in poor condition, the predominance, the preponderance of them are in rural America. Bridges with weight limitations are in rural America predominately. So we need to be making sure that rural America is not overlooked. So for the first time and since the last decade, we are now ensuring that rural America is not overlooked and that there is parity and attention and resources. Mr. Womack. Well, I appreciate the fact that the administration is putting a premium on getting these funds out into the rural parts of the country because they desperately need them. I have a real quick question about contract tower program. It continues to be I think one of the FAA's most successful cost effective government industry partnerships, especially for rural America that we just talked about. And that is the case in my district. As you know I have got Northwest National Airport and I have got some other smaller airports that have contract tower partnerships going on. Will this continue to be a priority of the administration? Secretary Chao. Absolutely. The FAA has fully funded all towers participating in this program and they have also received six additional applications, all of which are being evaluated. So this is a very important part of the FAA's rural America---- Mr. Womack. And may I assume that it fits within the safety umbrella of the administration. Well, again, I want to thank you for your time here today and for the opportunity to visit with you personally in the office and look forward to continued dialogue as we work together to make these issues possible. Secretary Chao. Absolutely. Thank you. Mr. Womack. Thank you. I yield back, Mr. Chairman. Mr. Price. Thank you. Ms. Lawrence. Mrs. Lawrence. Thank you, Madame Secretary. When we last met, I discussed the importance of the build grants to urban areas which I represent. I appreciate the equity that we talk about but there should never be a preference put on rural or urban because America's all of that. While I am pleased with the Department's recent $1 billion budget request, I remain disappointed with the Department's administration of the overemphasis on rural projects. In fiscal year 2019, the State of Michigan which includes rural sections, did not receive any, that's zero build grants, and only received funding for rural projects in fiscal year 2017 and 2018, while other states received multiple awards in both urban and rural communities. Additionally, in fiscal year 2018 and 2019, the Department opted to not distribute any planning grants. Time and time again, cities in my district have told me how difficult it is to prepare for large projects and often ask for help in securing funds to assist in the initial staging. Madame Secretary, can you briefly discuss why the planning grants were not utilized in the past and discuss the Department's strategy to ensure that communities are well equipped to take advantage of these in the future? Secretary Chao. It has been this administration's position not to have planning grants. There have been so many entities which have been receiving planning grants for such a long time so we would like to see more action versus them planning, hoping that the local entities, State and local entities, can also step up to the plate. But I'm always willing to talk more about that with you because there are certainly areas that do have specific needs. Mrs. Lawrence. And challenges. Secretary Chao. And challenges. Mrs. Lawrence. Yes. Secretary Chao. On the issue of grants, I wish that it were as--well let me just say the grants are very competitive. So we never have enough money. And in most of the grants, the monies that we are allotted forms only $1 out of like $11 requested. Mrs. Lawrence. If I can ask, Madame Secretary, if we have 50 states and we have a limited amount of money, how is it that certain states and I don't want to start beating a horse here, but certain states get multiple grants and other states get 0. That is very hard for me to understand how the administration is placing a priority on a certain State and other States just get totally nothing. Secretary Chao. We don't actually place priority on states. Mrs. Lawrence. Well, you do have on your administration one person assigned to your home state---- Secretary Chao. That's not true. I don't know how the newspapers made that up. I certainly didn't ask that person. Mrs. Lawrence. That is not true. Secretary Chao. That's not true. Mrs. Lawrence. OK. Secretary Chao. He happens to be from that State but I never asked him to be that, to do that. Mrs. Lawrence. OK. Secretary Chao. So I think there is--so that is not true. Mrs. Lawrence. But they have reaped the benefits of him being on that, on your advisory board or commission or whatever. Secretary Chao. No, I mean, he's---- Mrs. Lawrence. Well, Kentucky has been the highest recipient of grants. Secretary Chao. That's not true. Kentucky is 29th in population and it's received like 32 ranking in terms of grants. Mrs. Lawrence. And Michigan has gotten none. Secretary Chao. Well, this is a process. I don't want to-- this is a very competitive process. What Kentucky gets, what-- if you look at Illinois for example, Illinois is 12th in the Nation in terms of population. Mrs. Lawrence. Yes. Secretary Chao. They're No. 3 in terms of grants. Mrs. Lawrence. OK. Secretary Chao. So there are many examples of where there's disproportionate share. And a lot depends on the, I don't want to say this, a lot depends on, you know, the quality of the project, whether it's supported by the entire delegation, how it rates through the--what is truly a meritorious process. So we are always interested---- Mrs. Lawrence. Well if I can make my plea then, the planning part grants that has been not a focus of this administration, obviously Michigan is not doing something right because for us to not get anything. And even the planning grants, even my rural community projects, we only received them in 2017 and 2018. And so I will be aggressive in seeking to sit down with you, Madame Secretary to discuss this issue. Because for me to answer to my constituents how this entire State of Michigan has received no grants from this and we celebrate and say we fund the build grant and there is nothing left. Thank you. Secretary Chao. Well, let's continue talking. Mr. Price. Mr. Hurd. Mr. Hurd. Thank you, Chairman. Secretary Chao, it has been good, great working with you especially on some national security issues like in West Texas, the build grants that Texas has received has helped a part of Texas that has a disproportionate number of traffic fatalities. And it is a region that has truly allowed us to be energy independent and that goes along way for our national security. As you are aware, my home State, the ranking members home State, we only get 95 percent of the rate of return from the Highway Trust Fund. And that means Texas is the only State year to year that is consistently a donor State. I know the Texas Department of Transportation and most of the Texas delegation if not all of the Texas delegation would love to see that 100 percent rate of return like every other State is getting. Can you--I am--welcome some thoughts on how we can work together to remedy this unfair burden that Texas has to share or shoulder. Secretary Chao. I understand your concern and your concern with Texas being a donor State. The FAST Act basically determines all of that. And the current appropriations formulas are all in the FAST Act so we don't really have very much discretion in setting those formulas. And then also with--but within our surface reauthorization coming up, that will be our opportunity to relook and reconsider all of that. Mr. Hurd. So I will work with Chairman Price on that. Secretary Chao. It's a very contentious issue. Mr. Hurd. I am sure our ranking member will have an opinion on this topic when that reauthorization comes. Secretary Chao, you also know, most of us select people for the Merchant Marine Academies. Texas A&M Galveston, has purchased a new Merchant Marine or is looking to purchase a new Merchant Marine ship. Part of that is going to be for training for disaster preparedness which the Merchant Marines are having an increasing role and we have seen that effectiveness. My understanding is that in the President's fiscal year 2021 budget that $300 million is allocated to Texas A&M Galveston for that. I just wanted to confirm, is that your understanding as well? Secretary Chao. The $300 million is for the fourth ship which should go to Texas. Mr. Hurd. And my last question--I think my last, maybe my second to last question, Ms. Secretary, you know the San Antonio International Airport, my hometown, my home airport is slot constrained. It is a slot constrained airport and in giving the, given San Antonio's Military City, USA it is also the point from which most of, a lot of our border security men and women travel to and in from Texas and from the border through the fact that we are restricted from flying directly into Ronald Reagan Airport is difficult. And to rectify this, we are not going to be able to address this issue with--unless the projectionist beyond perimeter slot rule is changed. Do you have any suggestions on how we can go about addressing this issue without hamstringing current operations? Secretary Chao. Thank you for raising this. I know that it's an issue that's often raised by Congress. Unfortunately, DOT's authority in this regard, in this area is limited and it, you know, we have historically deferred to Congress on the appropriate number of slot exemptions for service to and from that airport. Mr. Hurd. Are you aware of if some of these rules were changed whether that would have impact on the pensions of airlines--companies that have previously worked for airplanes are receiving pensions from airlines? Is that anything that you are aware of? Secretary Chao. No, I'm not aware of that. Mr. Hurd. OK. That is something that in previous iterations of this debate, you know, changing these rules have been implied and I haven't been able to confirm that information whether that is the case but I appreciate your perspective. And, Chairman, I yield back my remaining 18 seconds. Mr. Price. Thank you. Mrs. Torres. Mrs. Torres. Thank you, Mr. Chairman. And, Secretary Chao, it is really great to see you. Welcome to our committee. I want to thank you for the call that you made to me a week and a half, 2 weeks ago regarding the grants that were funded to the Port of LA and Long Beach. As you know, the Port of LA and Long Beach are not in my district, however, they are a critical infrastructure to my district. If we care about foreign trade, I think that we should very much pay attention not only to the ports but to the 35th congressional district that I represent as I host all for the infrastructure as it relates to logistics. So imagine the impact that the ports have in the quality of life for my constituents that are driving 40, 50, 60 miles one way to work and the congestion that they have to go through and competing and inching their way home or to work with big, big trucks, right. I want to paint a picture to you. In the morning there is a mass exodus in my district at 5 or 6 a.m. Parents are going to work. That means children are being left at the front door of their school, often unattended because schools don't open until about 8 a.m. Two or 3 hours spent on the highway one way to work is too much to ask of a community that hosts this huge economic engine for our entire country. And that is why I was delighted to receive your call that you are looking to the community and you are looking to helping to fund port activity. I am disappointed, you know, that funding was zeroed out and that we are now going to look at the bill and the Infagrant to fund that. I think losing focus on specific port funding is a mistake. That is my opinion, and I hope that you will not lose that focus on inland ports or marine ports. I also want to tell you that TOD funding is critically important as we connect communities. We do not want to create these desert communities like the suburbs that I represent where there is very little economic activity and TOD grants are critically important to that. I represent a very poor working class community, planning grants are critically important to us. My cities do not have the staffing that is required to adhere and apply for many of these grants. You have to have full-time staff in order to report back on how they spent the money. I mean it is this huge government bureaucracy. We have to figure out a way to streamline some of those process to ensure that communities like mine are able to apply for that funding and be able to access that funding. Finally I just want to say that this committee has made it really clear that urban sprawl and overwhelming traffic in areas like my district are challenges that should be directly addressed by our national transportation priorities. Can we expect the pilot programs that have been authorized under both MAT 21 and the Fast Act to encourage transit planning that connect housing, jobs, and mixed use developments with major transportation projects, specifically the $10 million that was provided for a competitive pilot program to be stood up and to be available for communities to apply for? Secretary Chao. I don't know too much about the timetable. Mrs. Torres. OK. Secretary Chao. So I will look into that for you. Clearly I understand your concern. Mrs. Torres. Right. Secretary Chao. And also it is very common sensical. You need to have transit to be able to supply communities with the resources with which to get jobs, go to school, send their kids to school. Mrs. Torres. Right. Right. A railroad, although that grant was for the Alameda corridor, railroad is important in the district. But we have had many, many, many cases of death as a result of people not adhering to signs or the lack of signs, and railroad safety is a huge problem in the district. So I think I am going to stay here and come back for my other questions, but I hope that you will stay focused on that. Secretary Chao. Thank you. I will. Mr. Price. Thank you. Ms. Clark. Ms. Clark. Thank you, Mr. Chairman. And nice to be with you Secretary Chao. Thank you for coming. I want to quickly echo Chairman Lowey's concerns about the capital investment grants, and note that I am also glad to see the funding for the program in your request. Yesterday I had meetings with Governor Baker's staff, and I know he shared in the recent meeting with you, that MASS DOT is going to be applying for core capacity grants for green line transformation. And we are very much hoping to engage in that process with you and your staff. Here are some not so fun facts. Boston is ranked eighth most vulnerable to floods among the world's coastal city. Boston's low income neighborhoods, where public housing projects were built on landfill, are particularly vulnerable to flooding. And this is not just Boston, but neighborhoods and communities in my district as well. Entire neighborhoods in my district could be under water, including Logan Airport. And we know that super storms have tremendous flooding, can be subject to tremendous flooding and significant damage to our infrastructure. This committee provided a million dollars in fiscal year 20 appropriations for the department to work with transportation research board on effective ways to measure the resilience of the transportation systems. This is an area we take very seriously, and we hope that you do as well. Can you share how you have used that million dollars and how you have tied Federal transportation funding to resiliency efforts? Secretary Chao. In our current budget we actually have, let me correct that. In our surface reauthorization, which is undergoing Agency clearance right now within the Executive Branch, we actually include provisions for resiliency and infrastructure. So that is the first time that it has ever been included, and I think that's a very positive development. On the $1 million grant, I'm sorry, I do not have that handy, and I will certainly look into it for you. Ms. Clark. OK. Are there any other areas you can point to where you are working to build resiliency and leveraging your grant programs? Secretary Chao. I am sure there are a lot. I was briefed on this, and I just cannot remember. Ms. Clark. All right. Well I am sure you will get back to me. Secretary Chao. If I can, thank you. Ms. Clark. Moving on to natural infrastructure. Nature based solutions is a great way to help us build resilience, whether that is reefs, beaches, use of vegetation. And when they are used alongside great infrastructure such as roads and bridges, they're very much a cost-effective and sustainable solution. I am pleased to see that you released guidance on nature based solutions for coastal highways back in August. And how can we support you in the amplification and promotion of these solutions? And how is Federal highways incorporating them into its own projects? Secretary Chao. I will be pleased to answer that. I actually found the answer to your $1 million. It was in the fiscal year 2020 appropriations bill. Ms. Clark. Right. Secretary Chao. And so it was directed for the transportation research board, as you mentioned. And actually that effort is currently in development, and the funds are being transmitted to TRB for their use. We also have a resiliency work group, working group, to answer your other parts of the question, established to kind of collaborate across all modes, because that was always an issue. Each mode kind of dipped their thing in their own silos, but obviously this issue requires the overall cooperation and collaboration of all the modes, an intermodal basis. And then the University Transpiration's Grant Program, we have got 37 designated centers involving over 150 colleges and universities in excess of $70 million annually to carry out research on resiliency. And then, as I mentioned, the surface transportation reauthorization proposal will include resiliency language for the first time. And your question was, if you can just repeat the second part. Ms. Clark. Well, you gave a partial answer, and I have 30 seconds left. I just want to return to the U.S. Merchant Marine Academy. Every year we talk about this with sexual assault. Unfortunately, 2 most recent surveys shows 70 percent of sexual contact occurs on the grounds of USMMA at Kings Point, New York. There is a request to have concurrent criminal jurisdiction with New York State. Can you tell me the status of that? Secretary Chao. We are very concerned about that as well. We are glad that you brought it up. Kings Point is now working with the Nassau County District Attorney and also the Nassau County Police Commissioner in reaching out to discuss what are their responsibilities and extending existing co-current Federal/State jurisdiction, which is what you were talking about. So that effort has been initiated and it is ongoing. Ms. Clark. Do you have any timetable for completion? Secretary Chao. That is a good question. We will look into that. Ms. Clark. OK. Thank you. I yield back. Mr. Price. Thank you. Madam Secretary, I want to return to the question of your oversight role with respect to FAA decisions which you referenced, for obvious reasons, in your opening statement. I realize the relationship because FAA predates the department, there are some unique features here. But nonetheless, you clearly are the head of the department within which FAA is housed. Could the department challenge the FAA to integrate the work of aircraft certification and flight standards? Could the department require the FAA to justify its use of Organization Designation Authorization, ODA? What actions has the department taken to foster a safety first culture at the FAA? And specifically, when the FAA makes the decision to return the MAX to service, what questions do you intend to ask of the FAA? I realize those are very broad questions, I hope they give you a chance though to elaborate the approach you are taking and plan to take on this matter. Secretary Chao. First of all there is no timeline for returning the Boeing MAX, 737 MAX to service. Our number one priority is safety, and the FAA has the statutory responsibility to ensure that its review of the airplane is to its satisfaction before any action is taken on this. My responsibility is to ensure that the FAA process is one that is free from outside influences, that they are paying attention, which they are. To this the FAA is responsible for, you know, issuing the air worthiness directives, for example, that will be used to address the safety concerns that led to the grounding of the MAX. The FAA is also the agency responsible for rescinding the grounding order, determining minimum training requirements and working with the international community. I fully expect the FAA to conduct a thorough review of the MAX aircraft prior to its un-grounding. And this will include examining the recommendations from the various task forces and review boards which have been studying this issue. And then as Secretary of Transportation I reserve the right to require that the FAA take any additional safety action that is needed. Mr. Price. Thank you, that is helpful. We will of course monitor this very, very carefully, and want to work with you to make certain these decisions are responsible, that they are adequately justified, and that when it comes to the FAA's needs, oversight needs, enforcement needs, that the budget fully reflects that. Let me quickly turn to the question of budget execution. For the past 3 years, in partnership with my friend Mr. Diaz- Balart, we have appropriated nearly $16 billion above authorized levels for highway, transit, rail, aviation, and maritime infrastructure programs. As you well know, a significant portion of these resources are provided through competitive grants to help communities address their challenges. In fiscal 2019, the committee provided $670 million for four passenger rail and other road improvement grant programs, including CRISI, and the Federal State Partnership for the State of Good Repair Programs. Because the department and FRA have been unable to award these grants in a timely manner, the Fiscal 2020 Bill directed you to make these awards by May 1, 2020. So my first question is are you on track to meet that deadline? Secretary Chao. I sure hope so. We certainly are very much aware of that. Mr. Price. All right. Well we hope so too. I will take that to be an affirmative answer. It is imperative that you complete work, of course, on the 2019 awards, because we have to move forward with the 2020 awards. Secretary Chao. Right. Mr. Price. Here we are talking about $2 billion the committee provided in the 2020 bill for 10 competitive grant programs, including CRISI and the State of Good Repair Programs. I appreciate that the DOT has initiated the six grant cycles, you know, over these 10 programs. But I am concerned with the pattern of FRA grant programs lagging behind. So my question here has to do with the way these rail investments are going to be expedited. What does the department and the FRA need in order to improve the grant process? Do you need more, does FRA in particular, do they need more resources, do they need more staff, do they need more prodding and oversight? I mean what is your assessment? We are hopeful that we will meet this statutory deadline, but there is a broader problem that we need to address. Secretary Chao. There are so many grants now in the Department of Transportation. I was here 27 years ago. We did not have so many grant programs. We now have 69 different programs, grant programs, discretionary. So it has really required agencies to respond in a way they have not before. FRA was primarily just a safety organization. Now they are a grant making organization. So we just got CRISI grants out this week, the NOFO on that. So we are making a priority to be responsive, understanding that the committee wants all this out, and we do too. We make it a top priority to get all these NOFOs out, Notice of Funding Opportunities, and that is very important because that sets a perimeter for how applications are to be submitted. And if we write them badly, then it creates havoc, uncertainty, confusion, with the grant application community. And since December of 2019 the department has issued 30 already out of 48 total possible funding opportunities. So based on our progress to date, I am pretty confident, I never want to over promise, that the department's ability to at least complete this first phase, which is a NOFO, is proceeding according to schedule. And again, we have a very tight timeline, and we hold the modes, all the modes, not only FRA, very tightly to all these Notice of Funding Opportunities. Mr. Price. Thank you for that expression of determination. Your perception is absolutely right, that this subcommittee puts great stock in this. I personally put great stock in the CRISI program. I have been grateful for what that program has meant to my home State, I know firsthand. The State of Good Repair Grants is also critically important. So, yes, the activities have stepped up, the activities have changed over time. There needs to be adaptation on the part of FRA and other agencies to take on this role. And we need to know if what is at the root of some of these challenges is staffing, is funding, we need to know that and deal with it sooner rather than later. Secretary Chao. I understand. Mr. Price. Thank you. Mr. Diaz-Balart. Mr. Diaz-Balart. Mr. Chairman, thank you so much. Before my question, I want to make 2 points. First is on, I know that Congressman Torrez, my dear friend, and also I believe it was Rutherford, mentioned the ports. And I think others did as well. And I would be remiss because I thanked you, Madam Secretary, as you need to be thanked, but I also need to thank the chairman. Because I would just remind folks that that was a program that started in this subcommittee when I chaired it. However, it has continued under the leadership of Chairman Price. So thank you. I think all of us, by the way, owe you also a debt of gratitude, Mr. Chairman, for that. Second place, and I think it was Congresswoman Lawrence, and she mentioned something which I am glad she did because, you know, she is a very knowledgeable person in this subcommittee and a great member of this subcommittee, and yet there have been so many press reports out there that we kind of read and we assume they are true. And so I want to thank her for bringing up the issue and the fact that you clarified, Madam Secretary, some of the facts on some of the things that we have read. I mean I just learned now for the first time that Illinois, 12th in population, 3rd in grants, I hope there is not like a distant relative of somebody who may have worked for somebody who's a third cousin who once drove by the door of maybe one of your staffers and, I don't know, it may be Adam, it may be Ann, because if there is, who happens to be from Illinois, then you're probably going to get a story saying that you've got bias towards Illinois because of that distant cousin who is a relative of somebody who drove by your door or somebody who knew somebody. And I am glad you had the opportunity, Madam Secretary, to clarify that because I read that and it has been highly irresponsible reporting. So thank you. Secretary Chao. In fact, a senior senator from Kentucky complained as to why Kentucky was not getting more. Mr. Diaz-Balart. I am not going to go there because I imagine that you, right, you must have heard that right. Let me talk a little bit about in your budget request you highlight a major new large truck crash study to be conducted jointly between the Federal Motor Carrier Safety Administration and the National Highway Traffic Safety Administration. I understand that the last such study was done nearly 2 decades ago. Madam Secretary, what led you to decide to undertake this new major study? You know, what do you hope to learn how that might benefit road safety? Just give me some thoughts about that because that is a very important and a new major undertaking---- Secretary Chao. Thank you for that question. You are right, it has been more than 15 years since the original study. And there have been a lot of changes in technology, vehicle safety, driver behavior, roadway designs that impact how a driver performs. So, this new study will help FMCSA identify factors that are contributing to the growth in large truck crashes. And on January 14, 2019, FMCSA published, in fact, a request for information soliciting public comment about how best to design and conduct the study. So, thank you for bringing that up. Mr. Diaz-Balart. Well, and have you had an opportunity yet to figure out, I mean, if anybody knows yet, you know, how long that might take and what the cost may be or is that still premature? Secretary Chao. We do not really, I do not really know yet but I will go back and ask that. Mr. Diaz-Balart. Well, I am just grateful because, you know, and I can't speak for anybody else but clearly this subcommittee. But also, the full committee chairwoman is one who constantly reminds us of the importance of safety. And so, it is something that I am interested in and if you can stay in touch with us as you progress and as things move forward on that. It is something that I think is important. I want to commend you for bringing that up. I didn't realize until I saw this recommendation, this thing that you are looking at that it had been that long since--and you are absolutely right, technology is totally different than it was, again, you know, almost 2 decades ago. So, I thank you for that. Mr. Chairman, I yield back. Mr. Price. Thank you. Ms. Lawrence. Mrs. Lawrence. Yes, thank you again, Madam Secretary for being here. As you know, the automotive market is beginning to shift toward electric vehicles. The State of Michigan is home to several auto makers. And the discussion about, even in my district, there is a ground breaking announcement that local communities are going to start building just electric vehicles. Can you in detail discuss the Department's strategy to develop a robust EV infrastructure that expands the electric grid, designate proper charging signage, improve supporting technologies. And please discuss how you are working with the Energy Department to ensure that this infrastructure is a priority. Secretary Chao. Well, I think it is a matter of consumer choice. And electric vehicles are currently 1 percent of the total cars sold. So, this is an issue in which infrastructure is being talked about. We will have to deal with it and perhaps a surface reauthorization proposal is the proper place for that. We discuss this with the auto makers all the time and other interested stakeholders on this. But it is a huge and major part of infrastructure development that I think needs national consensus. Mrs. Lawrence. And I just wanted to emphasize that we all have to work together on this. Because we manufacture the cars and we can't support them. And so, just to make sure that that is a priority. Mr. Chairman, I would like to yield the remaining of my time to my colleague, Ms. Torres. Mr. Price. Thank you, Ms. Torres. Mrs. Torres. Thank you, so much, Mr. Chairman. And Secretary Chao I know your time is almost up. Secretary Chao. Not at all. Mrs. Torres. I really appreciate you being here. As part of the FAST Act, the Regional Infrastructure Accelerator Demonstration Program was authorized to assist entities in developing their infrastructure priorities and financing strategies for projects eligible for funding under TIFIA. After fighting for funding over the last few years, I secured $12 million in the fiscal year 2020 to stand up this program. Can you tell me what the timeline is for the NOFA to be issued so that we can take advantage of that? My concern is that California has passed a gas tax so we have some money where we could utilize with matching funds if necessary. So, this is a critically important program for my district. Secretary Chao. We recently went out with the request for information to get ideas from stakeholders and I think that was important. Because we wanted to get information about how the Regional Infrastructure Accelerator Program can best be structured so that it is relevant. So, that was done, that is positive. And now, we are anticipating doing the NOFA probably this spring. So, that took a lot of time but we had to get that in place first. So, probably this spring and probably with award selection announcements later this year. Mrs. Torres. Is it possible for my office to participate in that input that you have received or get some information on that input that you received? Secretary Chao. Sure. Mrs. Torres. And then just quickly going back to railroad trespassing safety. According to the national strategy to prevent trespassing on railroad property, the Department plans to conduct trespassing prevention summits. To help develop mitigation strategies specifically to the local surrounding communities and issues related to deaths on railroad property. Can you tell us what the timeline is for those community meetings or stakeholder meetings that will eventually happen? Secretary Chao. You may remember that I was Deputy Secretary of Transportation way back, you know, almost 30 years ago. And this was highway rail grade crossing safety issues were a huge issue then. And I was always very concerned about that. And one of my first priorities coming back as Secretary is to focus attention on this. So, we have actually done--we continuously try to get information out to engage in educational programs to have the FRA work with railroads, State DOTs, local governments, individual, you know, communities to focus on this issue. And I think that has actually reduced fatalities by about 60 percent but it is still too high. Mrs. Torres. Right. Secretary Chao. So, we have about 400 annually. So, we want to work with you on this. Because obviously for certain communities, it is a huge issue. Mrs. Torres. I am going to yield back her time. Mrs. Lawrence. Just, Madam Secretary, just wanting you to know that I will be following up on what we can do better in Michigan. And thank you so much for showing up, it means a lot. Thank you. Secretary Chao. Not at all, thank you. Mr. Price. Thanks. Ms. Watson Coleman. Mrs. Watson Coleman. Well I was just wondering whether or not the whole issue of positive train control had been addressed, Madam Secretary. Secretary Chao. No, it has not. Mrs. Watson Coleman. Because I know that there is a 2020, December 2020 expectation of completion. But I don't think all the transit agencies, including the one in New Jersey, are necessarily poised to complete in that amount of time. I am wondering what you all are doing to either get them there or what can we expect in terms of having the time necessary to it because it is such an important issue. Thank you. Secretary Chao. Oh, we have been very focused on this. In fact, we actually have a pretty good report card. The FRA is in charge of doing this so we want to work with you. If you have any particular entity that is having problems---- Mrs. Watson Coleman. New Jersey. Well, I don't think that we have done everything that we are supposed to do in New Jersey. Secretary Chao. Right. So, the President's budget requests $3 million to support FRA's continued monitoring of PTC operations in fiscal year 2021. And all 41 railroads either met the December 31, 2018 deadline for fully implementing the PTC systems or certified that they will implement an FRA certified interoperable system no later than December 31, 2020. Upon initiating the commuter rail service in 2019, a 42nd railroad, TEXRail is no included in all of this. And PTC is in operation in 92 percent of the 57,855 required route miles. And only about 25 percent of 236 tenant railroads achieved the PTC inoperability. So, challenges remain. But this is a very important focus. Mrs. Watson Coleman. Yeah, so will we achieve the 100 percent, all the 58 some odd miles? Secretary Chao. It is certainly our goal but there will be railroads and short lines that will not be able--entities that will not be able to do so. So, we will---- Mrs. Watson Coleman. So, we will be able to--I am sorry, go ahead. Secretary Chao. So, the FRA is watching and we are looking at it very closely. Mrs. Watson Coleman. And so, the other question, I guess the concern is that when they are not meeting the deadline, if we then impose a civil penalty upon them, it takes the sort of money that could possibly accomplish the intended goal of being in compliance. So, are we able to waive that as well? Secretary Chao. Gosh, I don't know. I am going to have to ask the FRA. Mrs. Watson Coleman. It seems counterintuitive. Secretary Chao. Because actually we have assessed, FRA has assessed nearly $400,000 in civil penalties for schedule related PTC violations. Mrs. Watson Coleman. Yes, I know. Thank you. I yield back. Thank you, Madam Secretary. Mr. Price. Thank you. We appreciate your appearance, your time here this morning, Madam Secretary. And I know we do have a hard stop which we have arrived at. I want, on the way out, to signal a concern of my own regarding truck safety. Maybe you can give me a quick answer on this and if not, we will await your answer. This has to do with truck underrides. And our fiscal 2020 bill did direct the Department to implement the 2019 GAO recommendations with respect to truck underrides and to complete a rulemaking to improve rear guards. I wonder if you have any timeline you can report on this morning as to when you are going to be able to comply with these requirements. If not, we will await your answer for the record. Secretary Chao. Yes, we actually have just talked about this just yesterday. So, this is a priority. We understand that we do have a timeline but let me get that over to you. Mr. Price. All right, all right, very good. Secretary Chao. May I just add, I couldn't believe--I will talk with Representative Lawrence personally about this. But, in fact, Michigan has received other grants. So, I will talk to her. They have received $533 million in discretionary grants including info grants. And so, I will talk to her about some of this. Mr. Price. Please do that. And that is pertinent to what I am going to say right now. Secretary Chao. OK. Mr. Price. Because if there is more information of that sort, clarifications, we will welcome that as we compile the hearing record. The staff will be in contact with your staff regarding any questions for the record. And if you could return that information to the committee within 30 days from next Thursday, we will be able to publish a complete transcript of today's hearing. So, we would appreciate your cooperation in that regard. Mr. Diaz-Balart, do you have any final comments? Mr. Diaz-Balart. Thank you very much, Mr. Chairman, I don't. Thank you. Mr. Price. All right. Well with that, thank you Madam Secretary and the hearing is adjourned. Secretary Chao. Thank you so much. [Material submitted for inclusion in the record follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, March 4, 2020 ---------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT BUDGET REQUEST WITNESS HON. BEN CARSON, SECRETARY, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Mr. Price. The hearing will come to order. Good morning, everyone. Good morning, Mr. Secretary. We are happy to have you here. We are going to examine the President's fiscal year 2021 budget requests for the Department of Housing and Urban Development. Pleased to have Dr. Carson, the secretary of the department here to testify. So welcome back and we will look forward to what you have to say. Stable housing is a basic human need and the foundation upon which people build their lives. Absent a safe, decent, affordable place to live, it is next to impossible to achieve good health, positive educational outcomes, or reach ones economic potential. That is why we have said on this subcommittee that we need in this country to appreciate the importance of housing, to make housing a front burner issue, fully as important as public education, as healthcare, as the other building blocks of human dignity. Across this country, both urban and rural communities are struggling to address an affordable housing crisis. Many of the people affected are the most vulnerable among us, seniors, people with disabilities, low income families with children, veterans. Meanwhile, only 1 in 4 families eligible for Federal rental assistance can receive it because of budget shortfalls. Of course the problem isn't just the quantity of affordable housing units, it is also about the quality of those units and preserving what we have. The threat of carbon monoxide, lead, radon, and other hazards continue to pose major challenges for landlords, including cash strapped public housing authorities as well as HUD's oversight capacity and physical inspection process. Residents of the Durham Housing Authority in my home State are only the most recent high profile example of the human cost of deferred maintenance of public housing stock. We simply must do better. In the last three fiscal years under both Republican and Democratic House majorities and in partnership with my friend, the former chairman and current ranking member, Mario Diaz- Balart, we have provided billions in new resources for public housing, for vouchers, for homelessness programs, and grants to states, localities, and nonprofits to address housing and community development needs. But let us be clear. This subcommittee knows that the unmet needs in our community our communities are immense. The challenges facing HUD and its dedicated employees are vast and absent a major infusion of new resources and policy interventions, we are not going to be able to effectively address this national housing crisis. This brings us to the Department's Fiscal 2021 budget request which proposes $448 billion in total budget authority, that is a cut of $8.6 billion or 15 percent compared to the current enacted funding level. This is woefully inadequate to the task at hand and honestly, we had hoped for better. Mr. Secretary, for several years in a row, you, the administration have proposed to eliminate community development block grants, the HOME program, the SHOP program, the Public Housing Capital Funds, and CHOICE neighborhoods. Not cut, but eliminate. All of these programs either create new housing or preserve existing units. The cuts to the Capital Fund are especially baffling given the acute challenges faced by public housing communities nationwide. There has been a fair amount of presidential posturing about homelessness in California and other states but the budget proposes a $4 billion reduction to homeless assistance grants, precisely the opposite of what we might expect given all the rhetoric. I also find it troubling that despite a highly touted initiative to end HIV in America, the budget request would slash funding from HOPWA, the Housing Opportunities for People With AIDS, the only program designed to address the housing needs of low income people living with HIV, AIDS. Despite the overwhelmingly grim picture painted by this budget request, there are a handful of bright spots. For the first time you do include some funding for new construction under 202, housing for the elderly, 811, housing for people with disabilities. That is good news and it builds on investments this subcommittee has prioritized in previous years to address accusing--acute housing shortfalls for the elderly and disabled. The request also seeks increased funding for lead hazard control grants, radon testing, and lead risk assessments, carbon monoxide alarms, and a boost for several self- sufficiency programs. Unfortunately, these modest investments are more than offset by the draconian cuts and the unrealistic program eliminations I mentioned earlier, including funds essential to reducing that public housing maintenance backlog in the first place. As disaster recovery also remains an important area of focus for this subcommittee. On December--on January 27, the Department issued the long awaited mitigation notice for CDBG, DR funding, 145 days after the 90 day statutory deadline. We will continue to conduct oversight into the Department's action on disaster recovery. We also need more information about the new Federal financial monitor for Puerto Rico. I reiterate that the HUD IG found no major deficiencies with the island's housing department that administers these programs. Survivors of natural disasters need assistance and support, not rhetoric about how messed up their government is, not politics, not bureaucracy. When it comes to policy proposals to the budget, I would like to once again register my serious concerns with the Departments so called rent reforms which would essentially shift HUD program costs onto residents. These proposals have been consistently rejected on a bipartisan basis, I expect that will occur again this year, yet the budget includes nonexistent savings based on the assumed enactment of these work residents and rent increases. I am also concerned with HUD's administrative attempts to roll back fair housing regulations including the affirmatively further fair housing rule and their proposed disparate impact rule. These actions represent a fundamental abandonment of our obligations under the Fair Housing Act. The Department has withdrawn guidance and is considering harmful changes to the equal access rule that ensures shelters and other homeless providers that accept Federal funds will treat individual with dignity in accordance with their gender identity. Rolling back these protections would threaten an already vulnerable population with additional barriers to vital services. Finally, I urge the Department to reverse course when it comes to the cruel and misguided attempts to block assistance to families with mixed immigration status. By the Department's own admission, this policy would not save money but it could result in the potential eviction and displacement of 108,000 people including U.S. citizens and legal permanent residents as well as the separation of children from their parents. So the current state of housing in America should force us to ask tough questions about our national priorities. Unfortunately this budget proposal would make that affordable housing crisis even worse. So we need to work on this. And, Mr. Secretary, we look forward to working with you to ensure that HUD has the resources necessary to carry out its crucial mission. I would now like to recognize my good friend and the ranking member of the subcommittee, Mr. Diaz-Balart. Mr. Diaz-Balart. Chairman Price, thank you so much for holding this hearing and for your leadership. It is always great to welcome you, Mr. Secretary, back to the committee. I would note that 3 years ago this week, March 2, 2017 is when you were first sown in as Secretary of the Department of Housing and Urban Development. I know for you it has probably been dog years, right, but again, it is a privilege to have you back here today. So while obviously we can all have our differences in this town, and there are a lot of differences in this town, and we can have heated debates about the proper role of the Federal Government, for example, I think that we should all commend you, Mr. Secretary, for your exemplary leadership of HUD during these 3 years. Really kind of turning a department around in a way that I think is significant and major improved. We have placed new responsibilities on you, Mr. Secretary, and your staff and your team to execute nearly $40 billion in community development block grant disaster recovery funds. This program continues to help communities recover from the devastating, whether it is hurricanes or fires. But I just want to mention in 2017, we had Harvey, Irma, and Maria as well as again more hurricanes and floods and wildfires in 2018 and 2019. You have undertaken this task with a common sense approach while again, never seeking the limelight. It has never been about you, Mr. Secretary, it has been about those that, the American people that are struggling out there. I especially thank you for your work and I have seen it first hand, the work that you have done in Florida, in Texas, in Puerto Rico to help those communities recover and rebuild and make sure that they are stronger than they were before those events. As part of this recovery effort, we have provided $416 billion for a new mitigation program. A new mitigation program. This program was initiated right here as you know, Mr. Secretary, in this subcommittee by Chairman Price, by myself, by Joe and Doug and I know that you are working hard and your team is working hard to stand up this new program. Look, if we can together, together if we can get together and do this right, you know, the human and financial cost of future events, whether it is hurricanes, wildfires, floods, will decline sharply. It is something that has been talked about for such a long time but because of the leadership of this subcommittee and I am grateful to the chairman, we have finally got those funds. And again, we are hoping if done right we know that it actually can save not only lives but also save taxpayer money. This effort to make the communities more resilient is not just our business during the supplemental appropriations, but it is becoming more and more a part of the base frankly THUD bill. It is a major priority as I again as I mentioned for the chairman and I want to thank you, Mr. Chairman, for your leadership on that issue and you, Mr. Secretary, for working to make sure that our community are more resilient. I would also note that we entrusted you with major new housing investments made possible by the recent budget caps deals. This includes CDBG, home and investments in new elderly and disabled housing which obviously are a special priority to the chairman and to myself. The chairman and I have worked to include housing investments in our infrastructure initiatives on this subcommittee and I thank you again for being a partner, Mr. Secretary, in those efforts. I am pleased the President's request for fiscal year 2021 includes and builds frankly on some of these investments, including the lead in healthy homes, elderly and disabled housing, homeless programs which receive historic, historically high requests in your budget. Now there is some reductions again proposed, like the elimination of community development block grants that the chairman just mentioned. And I am, you know, I am pretty certain that I know what the House and this committee will do with those recommendations. However, Mr. Secretary, your track records shows and again, this is not words, it is your track record shows that when we exercise the power of the purse here in Congress, you prove to be a trusted partner, executing those programs to the benefit of our constituents and our communities and you do that and you do it frankly in a very effective way. Mr. Secretary, you know, you know what it is like to not be born with everything going your way. You grew up under difficult circumstances. You did not grow up with wealth and yet, you rose to become one of our nation's top neurosurgeons, a successful business man, and now a government leader. And, Mr. Secretary, I hope you know that your story is a true inspiration to the country and I think all of us and those of us who have gotten to know you. So however, what stands out for me more than your achievements is your dedication to serving others. And you have shown that throughout your life, Mr. Secretary, whether as a surgeon in the operating room or as a Cabinet secretary working to expand opportunities for over 6 million citizens who are directly served by HUD's programs, is your again, your willingness to serve, to help others, and to do so with conviction, but with absolute humility. And I think nobody could argue with what I have just said. So thank you for your service, Mr. Secretary, I look forward to your testimony today and as always, I look forward to continuing to working with you as we go through this process to serve those folks who truly need help. So thank you and I yield back. Mr. Price. Thank you. Mr. Secretary, we will of course be happy to print your full statement in the record, whatever or any attachments you want to include. Ask you now to speak for 5 minutes or so and then we will turn to questions. Secretary Carson. Great. Chairman Price, Ranking Member Diaz-Balart, and members of the subcommittee, thank you for the opportunity to appear before you today and discuss the President's proposed fiscal year 2021 HUD budget. And also thank you for the tremendous help that you've been to me over these last 3 years and for our organization. This is my fourth time testifying before this subcommittee to update you on the important work being performed by HUD's immensely talented and dedicated staff. Our funding plan for the upcoming fiscal year seeks $47.9 billion, an increase of 8.6 percent over last year's request. It proposes increased funding to help our fellow citizens who are homeless. It calls on Congress to provide a record amount of funding to make homes safer by reducing lead-based paint and other hazards like carbon monoxide and radon. And our budget will continue providing critical resources to support for more than 4.6 million low income families HUD serves though our rental assistance programs. In short, our budget supports HUD's combined efforts to provide safe, decent, and affordable housing for the American people, while being good stewards of taxpayer dollars. In the time I have, I would like to summarize the most critical aspects of our budget. First, homelessness has been foremost on our minds for recent--in recent months. HUD's most recent point in time count found a sharp increase in homelessness in California. This is stemming the progress we are seeing across the rest of the Nation where homelessness was actually down. Our budget requests $2.8 billion for homeless assistance grants which allows communities to serve vulnerable individuals and families who are homeless or at risk of homelessness through a variety of proven approaches. And in the coming months, HUD will be targeting unspent funds to areas of the country experiencing high levels of unsheltered homelessness. Our budget includes $425 million for one of my top goals, reducing home health hazards. In addition to our continued focus on lead, this request includes $35 million for carbon monoxide detectors and $5 million for radon testing and mitigation. Our goal is not simply healthy homes, it is healthy people living inside healthy homes. Across our rental assistance programs, HUD has requested $41.3 billion to ensure all currently served households continue to receive assistance. Our budget includes $853 million for housing for the elderly and $252 million for housings for persons with disabilities. These two programs assist approximately 125,000 elderly residents and 32,000 people with disabilities pay their rent. While we are here to talk about our budget requests, I would like to point out that not every challenge can simply be resolved with more financial resources. One of my priorities as Secretary and chairman of President Trump's White House Council on Eliminating Regulatory Barriers to Affordable Housing is working with Federal, State, local, and Tribal partners on eliminating regulatory barriers unnecessarily increasing the cost of America's housing supply. Not only do these barriers increase cost for consumers, they also place a higher burden on taxpayers who shoulder increased costs. Turning to FHA, I am pleased to report that the most recent actuarial report found the Mutual Mortgage Insurance Fund had a healthy capital ratio of 4.84 percent, the highest level since before the financial crisis. FHA's economic net worth stands north of $62 billion, nearly double from last year. I want to express to this subcommittee our deep gratitude for your support for updating FHA's technology. FHA is digitizing portions of its claim process which reduces processing time from months to minutes. We are requesting $20 million to continue this modernization initiative to help FHA properly manage risk and completely digitize the loan life cycle. To support HUD's fair housing mission, our budget proposes $65.3 million to continue fighting housing discrimination and fund a wide range of services related to equality and fair housing. HUD is also addressing fair housing through regulatory reform and legal cases. We have a new proposed disparate impact rule designed to provide plaintiffs with a roadmap for pleading stronger cases and an improved Affirmatively Furthering Fair Housing rule, which is aimed at increasing affordable housing options for families. HUD also filed a discrimination charge against Facebook and entered into a landmark agreement requiring Los Angeles to improve housing accessibility for disabled individuals. Finally, I want to turn to the increased role HUD has been performing to help communities recover from natural disasters. During my tenure, Congress has appropriated more than $40 billion for long-term recovery needs. As we administered this dramatic increase in funding, we found the unpredictable nature of the program does not allow grantees to plan responsibly or act quickly. In fact, we found it takes 2\1/2\ years for the first dollar to reach disaster survivors and another 2 years before the community has spent most of its funding. By beginning a conversation regarding the inadequacies of the current program, we hope to work with Congress on reforms that will speed the pace of recovery. Mr. Chairman, to conclude, our budget advances the administration's key priorities by providing shelter to the homeless, making homes safer from health hazards, and continuing to assist Americans in need with their rent payments. Our budget does this while recognizing difficult choices need to be made in order to prevent future generations from inheriting a mountain of debt. I am proud of the tireless work being done by HUD's nearly 7,500 employees and are serving every community of this great Nation every day. I often say we have the ugliest building, but the best people. Thank you. Mr. Price. Thank you, Mr. Secretary. Well, let us begin our questioning and I want to start with the topic of the hour which is critically important, and that is the work we have undertaken with the coronavirus, the possible impending pandemic. It was announced Sunday that you have been appointed to the Coronavirus Task Force. I expect that appointment has as much to do with your medical expertise, your career history, as it does with your present position. But I want to ask you a couple of questions that perhaps will illuminate the administration's approach to this and what your role will be. First of all, what do you--how do you envision your role on the task force? What is HUD's role in the response effort? In particular, what is HUD's role in communicating to residents in HUD assisted housing and the general public on the coronavirus response? And then another question I think it is essential to highlight and that is, your assurance, I hope you can assure us as a health professional, can you assure us that you and the task force will be supporting the recommendations of public health professionals and ensure that our national response and the public communications about the response are based on the facts and on sound science? Secretary Carson. Yes, thank you. It is obviously a serious situation that impacts our country. And the task force that has been put together has many extremely capable people that I have known for decades. And we are considering all possibilities because viruses can be unpredictable. And we meet every day and, you know, we all ask, including myself, very pertinent questions and seek the advice of all the other members as well as people who are outside of the committee. We have access to a lot of information. And, you know, as far as the housing of the people that we serve is concerned, we have sent out information to all of the PHA's around the country, thousands of them, regarding best practices for keeping people safe. And we will continue to do that and update that on a regular basis. Mr. Price. Can you say something about messaging and on the kind of reliance you anticipate on the best expertise you can muster? Secretary Carson. Yeah. Well, you know, this is a virus and it is transmitted in a way that viruses are, particularly respiratory viruses, which means that we have to exercise the same kind of precautions that we would for something like a flu epidemic. The consequences of this can be more severe than the flu, but the same kind of precautions are important. And people can still go about their normal lives. This is not going to impact most people. And even if people were affected, 80 percent or more of them would not have any significant consequences from this. It is mostly the elderly and people who have underlying conditions that are most at risk. And we are working with medical experts to come up with treatments that will help to ameliorate a lot of the symptoms. Because when you are dealing with a viral illness like this, you don't necessarily have something that kills the virus right away, but you can impact the symptoms and improve the condition of the patient. And also, we are working on a vaccine at record speed. And all that looks very promising. Mr. Price. Well, thank you. I would expect that you personally and others on the task force will be involved in conveying a message that, in some respects, puts things in perspective, provides some larger view of what we are dealing with, but also doesn't sugarcoat or minimize the dangers, the possible worse-case scenarios. Secretary Carson. Absolutely. Mr. Price. That is truthful and balanced in that respect. Secretary Carson. And that is something that we talk about on a daily basis. We want to make sure that it is absolutely transparent, it is not sugar-coated, it is not used in any way as a political tool. Mr. Price. Thank you for that answer. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you, Mr. Chairman. Mr. Secretary, I want to talk a little bit about lead in healthy homes. I would like to commend you first for your focus, the focus that you have placed on ensuring that Americans are living in healthy homes. I assume that your background as a neurosurgeon informs this interest. I know you are uniquely aware of the link between, frankly, health and a good positive social outcome. You have more than tripled the budget for these programs in your recommendation. But also, you have done so in your tenure, and from just $110 million when you first arrived at HUD to $360 million in next year's budget request. This happens to be an area where the full committee chairwoman has been a leader in for many, many years. There are several recent news reports on the hazards tenants face in public multifamily project-based housing. These hazards include carbon monoxide, lead, and radon and gas, radon. So, what is new about this year's budget proposal regarding healthy homes that might be different from previous years, Mr. Secretary? Secretary Carson. Thank you. This has obviously been an area of tremendous interest to me having served in Baltimore for 36 years in the medical profession, and particularly in East Baltimore, there are a lot of children who are impacted by lead. And what you discover very quickly is that the deleterious effects are long term and are extraordinarily expensive. And that is why it is so important to deal with it before those consequences become a reality. This year's budget contains dedicated funding for carbon monoxide detectors for the first time, dedicated funding for radon detection and mitigation for the first time. And obviously, there is a very intense interest in providing a healthy environment, particularly for children who are growing up, but also for elderly people. When we talk about our Healthy Homes Initiative, we are also talking about providing the appropriate type of access for elderly and disabled people. We are talking about putting in appropriate types of railing in homes for elderly people because falls and the results of falls cost us tens of billions of dollars each year. And some of that are things that can be avoided. Mr. Diaz-Balart. Oh, it was on, but I just have to be louder. I was pleased to see that you signed the grant agreement with Puerto Rico. Again, $8.2 billion for their continued recovery after Maria. And you appointed a former HUD general counsel to serve as the Federal financial monitor for Puerto Rico. Mr. Couch has been in place for over a month now. And obviously, we have had conversations about Vivienda and Puerto Rico. And so, can you update us on the steps that Mr. Couch has taken in his new oversight role to not only help Vivienda succeed, which is crucially important, while obviously also making sure that we are a good steward for the taxpayer money? Secretary Carson. Yes. First of all, Robert Couch is an extremely talented individual. Served as the general counsel for HUD in the past, also has been the president of Ginnie Mae and advisor in financial governmental relationships for multiple institutions. He has been there for a little more than a month now, has established very excellent working relationships with the governor there as well as with Vivienda. And instead of what some people have said which is another layer of bureaucracy, what he really does is act as a point person. And that actually facilitates things, allows things to get done much faster. You know, he obviously is looking over the procurement procedures which, in the past, have been different than what we generally expect, let us just put it that way, and making sure that things are done according to the action plan in real time. So, that we don't wind up a year later saying, well, why didn't you do this and why didn't you do that, why didn't it get done? We have also, you know, put the money in there. They have had access to a lot of money, $1.5 billion for more than a year. Recently another tranche of $1.7 billion has been made available to them. So, there has never been a time when they needed money and it hasn't been available. But we have to be absolutely sure on the basis of the history of that place that we do not voluntarily put money in jeopardy. And that is why we put the financial controls in, that is why we have the Federal monitor, and that is why we have put unprecedented measures in place. And I suspect if we hadn't done that, there would come a time when the committee would ask us to come here and explain why we put all that money into a place without making sure that it was going to be appropriately spent for the benefit of the people. Mr. Price. Ms. Clark. Ms. Clark. Thank you so much, Mr. Chairman, and thank you for being with us, Secretary Carson. I first want to address the $50 million in homeless assistance grants for domestic violence survivors. And tell you a few short stories about the critical support that it has meant to survivors not only in my district and State, but across the country. One of the survivors we have heard from was literally living on the streets, sleeping in woods, under bridges because she just couldn't get the money together to secure housing. With the domestic violence set-aside, it gave her that rental assistance to reclaim her life and pave a new future. We also heard from a young mom with two children. This mom and her 3-year-old actually ended up in the ICU from abuse. And after sleeping in her car while 5 months pregnant with her other small children, she was connected through the set-aside to counseling, housing services, found a full-time job and was just approved for an apartment last week. And finally, we had an older survivor who had survived 20 years of physical abuse. She fled her relationship with two dogs. The dogs made it very hard to find an appropriate place to go. Also ended up sleeping in her car. The DV set aside helped her get into her apartment. Yet in your budget, you have eliminated this vital lifeline. I wonder if you could tell me how you came to this priority? Secretary Carson. Well, in the continuum of care package, we were able to create 2,800 more units for people who are victims of domestic violence. So, you know, there are different ways to be able to do this. We are extremely concerned about that statistic and will in no way shrink away from the responsibility of taking care of abused individuals. Ms. Clark. Well, in a related topic, and I think we both know that 75 percent of the need is still unmet with this particular population, there are also requirements for HUD to comply with VAWA, the Violence Against Women Act. And it requires you to clarify two housing providers. Their responsibilities under VAWA to establish policies and procedures for victims requesting an emergency transfer as well as really important recordkeeping requirements. Given that you have cut this other program, you are trying to make do with the other resources you just mentioned. I think it is really important that HUD comply with those requirements. In January, our staff asked you, asked the Department for an overview. We are still awaiting a response. Are you familiar with these responsibilities and can you tell me how HUD is fulfilling them? Secretary Carson. I am familiar with those responsibilities and I know that our staff is also very concerned about that issue. I will inquire as to why they haven't responded to you yet. Ms. Clark. That would be great. And I would really appreciate a response in writing on how that is being complied with and make sure that we continue the care that is needed. I appreciate the shout-out for your staff. We all do better when our staff is doing better. But I am concerned that in the employee viewpoint survey morale in your Fair Housing Office, which has lost 10 percent of its staff, 35 percent have responded that they are anticipating leaving HUD next year. That is a startling number. And I think that some of it may come from recent policies that especially affect Fair Housing, whether that is the proposed rule to reverse shelter access for transgender individuals, your personal disparaging comments about transgender people, and their quest to search for housing do not help. How do you plan to boost morale, retain and recruit staff, especially who are there to combat injustice, and can you continue to issue discriminatory policies and offensive comments, and expect to be able to have the staff you need to complete your vital mission? Secretary Carson. Well, I am not sure that I agree with the premise of your question. I do not disparage anyone. I think everyone gets equal rights. No one gets extra rights, and somebody--sometimes people interpret that as being against someone, number one. Number 2, this year, we have a positive balance in terms of people coming into HUD versus leaving HUD for the first time in 10 years, and that will continue to be the case. You know, people are free to come and go as they wish, but we try to engage everybody in these policies, you know, not just the politicals, but the career people, as well, and try to get people engaged in conversations about what we are trying to do. Ms. Clark. My time has expired, but I would just leave it with this, that when you state that big, hairy men, referring to transgender women trying to enter women's shelters---- Secretary Carson. That is not what I was referring to. Ms. Clark. Well, that is---- Secretary Carson. And I made that very clear to the media people like to repeat it, but it is not true. Ms. Clark. All right. My time has expired. Thank you, Mr. Chairman. Mr. Price. Thank you. Mr. Rutherford? Mr. Rutherford. Thank you, Mr. Chairman. Mr. Secretary, thank you for all your service, and thank you for being here this morning. Recently, organizations within my district that provide housing to the homeless have faced problems with the Continuum of Care grant under the HUD after they made their Tier 1 announcements for funding, and these programs have made no changes in their operations, none whatsoever, and yet, for some reason, they have fallen off that list. And we, actually, I think increased, what, 6.7 percent to $2.8 million, the funding for these homeless programs, and I have been told that this cannot be. And so, we are trying to find out why and I have been told that this cannot be remedied until the Tier 2 announcements come out, which these organizations have really-- I mean, this is essential funding for them and, without that, what is going to happen is a lot of the folks in these programs are going to wind up homeless, on the street, cycling back through our jails, and, you know, in a horrible situation. In fact, one of these programs of whom--that is--it goes all the way back to 2006, and they have been receiving those funds for 14 years. In fact, they are the only Envision Center in the State of Florida. A couple questions. Are there differences in today's standards for the qualifications versus last year or previous years? Did something change in the qualifications? They cannot even find out why they fell off. Secretary Carson. Right. Yes, I can tell you the answer to that. I, personally, have wanted to change the criteria, so that we look not at some type of philosophy, such as they have to comply with Housing First, but rather what kind of results have they gotten? How successful have they been? My hand has been slapped by Congress, saying, no, you cannot do that. You have to abide by the 2018 rules, which place Housing First at a premium. I am still trying to change that because everything we do should be based on evidence, not on ideology. That is how we get into cycles like this and problems like this. It makes absolutely no sense whatsoever. Mr. Rutherford. Yep. Look, I would agree if you made an assessment to change the standards and rules, but, so, I guess my question is was anybody put on notice that these changes were going to take place? Because this was really a surprise to many when they did not come out on that Tier 1 list. Secretary Carson. Well, we are looking at ways that we can work around the system, but, in the meantime, we could use a lot of help from Congress in doing things that actually make sense. And it makes much more sense when dispersing these grants to do it on the basis of what kind of results people are getting rather than on the philosophy that governs that organization. Mr. Rutherford. Well, I agree with you on that. The outcomes are what matter. Secretary Carson. Absolutely. Mr. Rutherford. If funding for the organizations that were omitted on Tier 1 are not included in the second round of announcements, are they going to be informed of what these changes might be or---- Secretary Carson. Well, we are still working to ameliorate that situation. Mr. Rutherford. Thank you. And do we know when the Tier 2s are coming out? Secretary Carson. I don't know, specifically, no. Mr. Rutherford. Oh, OK. Secretary Carson. We can find out for you, though. Mr. Rutherford. OK. Is there a process to notify folks when they are not going to be on these things or is it just when the list comes out, you just see that there is no--there is no explanation that goes with that? Secretary Carson. I am not aware of a process to notify them. Mr. Rutherford. To do that? Secretary Carson. No. Mr. Rutherford. Oh, OK. Let me switch over to FHA for just a moment, if I could, very quickly. The volume of manufactured home loans being supported by FHA continues to go down, with the Title I being almost nonexistent now. The industry, MHI, has provided your team with a long list of suggestions on how to improve the program, so that FHA can be used by consumers seeking to purchase a manufactured home. Where are the updates to the FHA's financing program for manufactured homes, housing on HUD's overall priority list? And is there anything being done to kind of update that and get it out? Secretary Carson. Yes. That is a high priority, and we have adopted many of those recommendations from the Manufacturing Housing Institution, and we have communicated that to them. Mr. Rutherford. Thank you. I yield back. Mr. Price. I want you to get the specific answer you want, so, please. Mr. Rutherford. Well, I just wanted to follow up. So, they have already been notified now, you are saying? Secretary Carson. Yes. Mr. Rutherford. And those changes have been made? Secretary Carson. We have adopted many of the suggestions that they have made, absolutely, and that is very high priority because you are talking manufactured housing. You are talking 10 percent of the population of this country. Mr. Rutherford. Especially in Florida. Secretary Carson. Absolutely. Mr. Rutherford. Thank you, sir. Mr. Price. Ms. Watson Coleman? Mrs. Watson Coleman. Good morning, Mr. Secretary. Secretary Carson. Hi. Mrs. Watson Coleman. We know that today's segregated communities are the result of discrimination against minorities throughout the country's history, and simply combating present day intentional discrimination will not undo that segregation any time soon. Last year, I asked you about the Affirmatively Furthering Fair Housing after you surprisingly suspended the 2015 rule process. At the time that HUD withdrew the assessment tool, that localities were using to analyze fair housing issues and set out fair housing goals, and it was stated that your agency's intent was to revise the assessment tool and to restart the process. However, HUD has now drastically revised the regulation, including by revising the definition of the Affirmatively Furthering Fair Housing rule so that it no longer includes both desegregation and community investments. Currently, the rule only focuses on housing availability. Can you tell me why HUD changed its reasoning and why it is--what is the reason for revising the entire regulation rather than the assessment tool, as originally suggested? And what is the reason for changing the regulatory definition? Secretary Carson. Yes. We were, in fact, concerned about segregation and unfairness in housing. So, we looked back over the history and we looked at the tools that had been used to address it and looked at how effective and efficient they were. That current rule that you talked about was completely ineffective and just created a lot of bureaucracy, and we said what is really creating the segregation? Are there George Wallace-type people standing in doorways saying you cannot come in here? No. What is happening is that people are segregated because they can only afford to live in certain places. They only have availability in certain places. So, we said let us address that issue and let us use the tool because, you know, there were many who suggested we just get rid of AFFH altogether, but I believe in the concept of Affirmably Furthering Fair Housing. I just want it to be effective. So, therefore, we said let us use it to remove the barriers to creating affordable housing and putting housing in different places and giving people choice. Mrs. Watson Coleman. Thank you. That is a good point there because that is about--it is about, A, disbursement of poverty; and, B, providing of housing, affordable housing, in other places, but the rule does not provide a definition of affordable housing. That is number one. And, number two, what is it that you are doing then that advances these opportunities for housing outside of concentrated poverty areas or traditional areas? Where is the affirmative action that is taking place to counteract the generational housing discrimination that has taken place? Secretary Carson. By giving the various jurisdictions the ability to identify three things in their area---- Mrs. Watson Coleman. What jurisdictions are you talking about? Secretary Carson. Every jurisdiction. Mrs. Watson Coleman. What, specifically, are you talking about when you say ``jurisdiction?'' Secretary Carson. Every city, every place that---- Mrs. Watson Coleman. You are talking about local municipalities that have been under fair housing discrimination complaints? Secretary Carson. Yes. The very places that you are talking about. Mrs. Watson Coleman. So, you are giving them the tools to decide to do right when they are in court, most of the time, because they have not done right? I am a little confused on that, sir, but I need you to answer that pretty quickly because I have got a question that is very local-focused that if I do not get in, I cannot go home. Secretary Carson. Go ahead. Instead of a top down government tells you you have to do this according to this set of rules, which is going to be different in every single community. Mrs. Watson Coleman. You are going to go bottom up. I am going to tell you what I told Betsy DeVos about education. The reason that the Federal Government got involved in fair housing and in education was because it was not happening on the local levels, and we needed to ensure that there was accountability and equity of opportunity, and that is what you should be doing. I want to ask you about a question about Princeton, New Jersey's Public Housing Authority because that is in my district. Last October, payments to Princeton were 10 months late. Currently, in March, one property has an 8-month delay in payments from HUD and another has a 4-month delay. And it seems like one of the underlying issues in this is inconsistent guidance from public housing and multifamily offices. Can you tell me what you are doing to ensure that public housing authorities receive timely payments, so that they can continue to operate? And would you ensure that the Multifamily Division gets proper training and support to process claims for reimbursement? Because one of the things that you did do was send some technical assistants to Princeton, but the technical assistants that you sent to Princeton, multiple occasions, did not know how to do what needed to be done, as well. So, I need to know hen they are going to get their payments, and when are we going to be able to straighten out the system? Secretary Carson. That is news to me. We will look into it. Mrs. Watson Coleman. Oh, fine. Thank you. Will, then, will you get back to us with some writing on that? Secretary Carson. I would be happy to. Mrs. Watson Coleman. OK, in rather short order because we do have a 4-month delay and a 8-month delay. Secretary Carson. I am always anxious to hear about things that are not going well. Thank you for that. Mrs. Watson Coleman. Thank you. Thank you. I yield back. Thank you, Mr. Secretary. Mr. Price. Thank you. Mr. Aguilar. Mr. Aguilar. Thank you, Mr. Chairman. Thank you, Mr. Secretary. Mr. Secretary, the President has talked a great deal about the growing number of people in California who do not have access to housing, but, after all that talk, the new budget does not include new funding to address homelessness, and, in fact, cuts the Emergency Solutions grants by $10 million and provides nothing for a program to address the specific needs, as Katherine Clark mentioned, for domestic violence survivors. On top of that, we have already talked about the fact that your budget eliminates programs to increase affordable housing stock. So, how do you envision solving homelessness with these kinds of reductions and eliminations? Secretary Carson. Well, first of all, I would say that the President's budget on homelessness requests $2.8 billion, which is an advance on last year's enacted budget. So, I am not sure it is accurate to say that we are trying to decrease the homelessness grants. Mr. Aguilar. Well, the chairman mentioned it in his opening comments, and we can give you a list of some of the specific reductions. Secretary Carson. But the numbers are there, though. Mr. Aguilar. The budget justification that HUD gave references a new initiative to address unsheltered homelessness, but it did not have any details. Last year, this committee included a provision in the bill that redirects unused recaptured funds for homelessness, homeless assistance grants, back into the program to ensure that those dollars can be used for the purpose that we all intended. You may not agree with some of our intent. You may call it bureaucracy, as you have mentioned, but that is the legislative intent and that is the focus of why we are directing these dollars and that is our constitutional obligation. Do you plan to use those funds for this new initiative? When can we expect to see a proposal in more detail on that? Secretary Carson. You will notice, in my opening statement, that I did include that, the recaptured funds. And, yes, we would, obviously, like to use them for the unsheltered homelessness, that--which is the greatest need. Mr. Aguilar. I think we would like to see a lot more detail than just what was in your written comments. That is fine, if that is your answer. I think that we can and should be doing a lot more. Secretary Carson. That process is in the--as we speak, is being worked out, how to best recapture and reallocate those funds. Mr. Aguilar. OK, and I know--I would hope that you do it for the intent of the program. I was a little shocked to hear in your response to Sheriff Rutherford that you want to work around the system. You know, when we give legislative intent, when we give allocations of funding, and then we describe how it should be spent, we are not always asking, you know, for you to work around the system, to--now, you are free to suggest ideas, you are free to work through the administration, through the Chairman, obviously, on new initiatives and new programs. That is your right. That is your obligation, but it just--it shocks me a little when I hear you say that you want to work around the system. Secretary Carson. It is because I feel an obligation to take care of the many people who would be left homeless when we neglect to be able to take care of the programs that are taking care of them. That is why. Mr. Aguilar. And you do not feel we share that same obligation to protect our communities and to take care of folks? Secretary Carson. Well, obviously, some people do not because they have tried to handcuff us and say you can only take care of people who abide by a certain philosophy. Mr. Aguilar. No, well, that is just not--that is just not true. Secretary Carson. But it is true. Mr. Aguilar. I think that is a gross oversimplification of the legislative intent, which, by the way-- Secretary Carson. Well, maybe you will be willing to work with us on how to do that. Mr. Aguilar. And, Mr. Secretary, you and I have sat down for dinner. We sat down with Congresswoman Torres. You know, we have talked about, you know, some of these issues before in the past. I appreciate having an opportunity, but I think that we are doing a disservice, and it just---- Secretary Carson. Well, let us work on it. Mr. Aguilar. And it grossly oversimplifies the conversation. If you want to have policy conversations, like we did over dinner, and work on some things, you know, that is fine. Secretary Carson. I would love to. Mr. Aguilar. But I think when, in a bicameral, bipartisan way, we give guidance on policy, I think it should be followed. I think the American public feels it should be followed. Secretary Carson. Well, when I say work around it, I mean, ways that we can follow it and still take care of the people who need to be taken care of. Mr. Aguilar. Sure. We are happy to work with you on ideas and initiatives in the future. Again, I just hope that--and it is something that we have not just seen in this agency, but, obviously, throughout the administration, what folks might think is working around the system, whether it is diverting money to something that was not congressionally designated gross changes to transfer in reprogramming authority. Those are things that we are trying to work through, and I think that we owe it to the taxpayers and the public, in order to get that right. So, I appreciate it. Thank-- Secretary Carson. I think you would agree that the people that the congressmen were talking about should be taken care of, as well. Mr. Aguilar. I agree and when we have bipartisan, bicameral language, I believe that the agency should follow it, too. Thank you, Mr. Chairman. Mr. Price. Thank you. Ms. Lawrence. Ms. Lawrence. Thank you. Thank you. It is good to talk to a fellow Detroiter. How are you today? Secretary Carson. Doing well, thanks. Ms. Lawrence. Mr. Secretary, over the years, the Home Program has done so well that, actually, in your budget and brief you tout the success of it. You named a woman named Jenny in Colorado, who received down payment assistance through the program, so she can fight homelessness that she had experienced, and that she could be transformational. But despite this success, you eliminated the Home Program in that same budget request. How do you justify that? Because since 1992 the HOME Program have invested over $34 billion to bill and preserve more than 1.6 million affordable homes. That seems like a great accomplishment which you should be highlighting, and one that I support. On a local level, Detroit, our hometown, would lose 7.3 million in affordable housing assistance if this program is eliminated. Could you, please, help me to understand how eliminating this program would fulfill the President's pledge to strengthen growth and increase the supply of affordable housing. Secretary Carson. OK. Well, first of all, I don't think it is a bad program, I think it is a good program. I think the intentions of CDBG are good. Those are good programs. The question is, who should fund them, and can they be better funded and taken care of at the local level, as opposed to the Federal level, when the Federal Government are ready has a $23- trillion national debt and growing? If we don't at some point begin to recognize that, we are going to hand to the next generation an untenable situation. So it is not that we think they are bad. And I will tell you that we are working on revising the CDBG Program. Ms. Lawrence. I am troubled to figure out why you eliminate something that is working. As a former Mayor, I know that those dollars, after we sweep the streets, pay the police and fire, keep the lights on, do all the things that we need to do, that money was extremely critical, it was like a lifeline. Not only in just my community, but in America, across the country. I also want to talk about the EnVision Center. In 2017 in our hometown of Detroit, you announced the initiative. In 2018 HUD broke ground for the first EnVision Center in our local. It is my understanding that these new centers are meant to connect HUD assistant families with tools, but quite frankly, I took a tour, and I was a little surprised of what the EnVision Center was. It was an empty room with no kiosk, with no pamphlets, or anything, it was just an empty room. In detail, can you please discuss how the administration is using or prioritizing the EnVision Center? Are they adequately staffed, funded, and are they promoting the services to local communities? Secretary Carson. OK. Good question. And thank you for visiting the EnVision Center. You know, there are multiple EnVision Centers that have popped up over the last year. Some of them are doing extremely well, vastly populated with all kinds of things, and some of them are more sparse, like the ones that you visited in Detroit. It is in the process of getting more organizations in it, in fact just last week SBA joined there with some programs. And if you would like to see an EnVision Center that is functioning at high level, we can make that available to you. And it will be a good thing because when you see one that is functioning at a very high level, I think you would be inspired to go back to the Detroit one at Durfee and help make it even better. Ms. Lawrence. Is it your intent that local government will make it better? Secretary Carson. Yeah, it is a local process. You know, basically, these things that exist already, and have existed for a long time, what the EnVision Center does, is brings it together in a place where it is accessible to the people who actually need it. And it adds to that some of the government agency-- Ms. Lawrence. How much money is being allocated to the EnVision Centers? Secretary Carson. I don't think any money is being allocated to, it is done locally, and it is owned locally. We just help facilitate it. Ms. Lawrence. I yield back. Mr. Price. Thank you. Mr. Hurd? Mr. Hurd. Thank you, Chairman. Secretary Carson, it is good to see you again. And I have got to start off by saying thanks for coming to my hometown in San Antonio. I was stuck up here, but you are always welcome in the Alamo City to El Paso. Secretary Carson. Thank you. Mr. Hurd. And I think the visit went really well. And speaking of El Paso, I recently met with some of the Native American Tribes in my district, the Tiguas in El Paso, and during the conversation they brought up the Native American Housing Assistance and Self-Determined Nation Act and, you know, this authorizes and administers Indian housing programs within HUD. This hasn't been reauthorized since 2013, right? This is responsibility of this body, and I would welcome your thoughts on this program, and is this something that you think Congress should reauthorize? Secretary Carson. I think of that as a tremendous program. I first heard about it 3 years ago, when I entered this, and I was wondering why it was being re-upped at that. We would very much support the effort, and willing to work with you in fashioning whatever legislation is necessary, because it has provided a lot of flexibilities for the tribes, and tremendous progress. Mr. Hurd. Just to be clear. You are for it? Secretary Carson. Absolutely. Mr. Hurd. All right. Mr. Chairman, I am looking forward to working with you on this as well too. It is a program that not only helps the tribes in my district, but across the country, and I appreciate your support. Something, Mr. Secretary, I know you believe in stable housing as a prerequisite for economic mobility, and we know student achievement is maximized when people go to a good, stable home. You know, younger, low-income children and families that use housing vouchers in neighborhoods with better opportunities earn more in their lifetime, and the housing choices we make today are going to have generational impacts. With that in mind, I am curious to the administration's position on eliminating housing programs like HOME, and CDBG, in cutting the housing choice voucher program and whether that is a wise decision. Secretary Carson. Well, first of all, the Housing Choice Vouchers are not being cut. What you are probably looking at is last year's enacted amount which was $23 billion 824, and then you look at this year's and it said $18 billion 833. What you need to know is that $5.185 billion has shifted to the Moving to Work tranche. So, when you add those two together, just taking care of the same number of people, that a much greater emphasis on self-sufficiency type programs. When you add those two together, it is $24 billion and $68 million, which is actually $194 million more than enacted last year for the same people. Mr. Hurd. And that is why we have these hearings. So, Rental Assistance Demonstration, the RAD Program that prioritized the redevelopment of public housing properties that are located in the opportunity zones. And could you expand on how HUD will work with cities like San Antonio and El Paso, to advance the construction of new units of affordable housing inside the opportunity zones. Secretary Carson. Yes. Yes. Thank you for asking that. Obviously the opportunity zones themselves, have provided a tremendous opportunity to develop areas that have been traditionally neglected. And what we are going is trying to incentivize some of the construction by providing our senior administrators to help facilitate the program by reducing the application fees when they are done in opportunity zones, multi-family housing, but allowing mixed use facilities to have certain tax advantages. All of those things will facilitate affordable housing. And also recognize that, you know, we elicit from the people in those zones. There are 35 million Americans that live in opportunity zones, 2.4 million of them are HUD-assisted individuals. We elicit information from them about what kinds of projects would be helpful to them. And people can also go to OpportunityZone.gov to gain a lot more information about what is available. Mr. Hurd. That is helpful, Secretary. And what is your kind of philosophy on how do we ensure that we don't inadvertently lead to displacement of low-income residents from these opportunity zones? That is a question I get asked a lot, and I am sure it is a topic that you have put your considerable intellect onto. Secretary Carson. Absolutely. And it is something that we pay a great deal of attention to, that is one of the reasons that our Executive Director of the White House Opportunity and Revitalization Council, Scott Turner, visit so many places as the various projects are being carried out, and that will continue to be the case. Mr. Hurd. We copy. Thank you. Mr. Chairman, I yield back. Mr. Price. Thank you. Here, at the midstream point, before we turn to Ms. Torres, I want to just interject a couple of items that I believe will be helpful in terms of earlier exchanges. First of all with respect to Mr. Rutherford, and his indication that his grantee was having trouble with the Fiscal 2019 continuum of care process. And your answer, Mr. Secretary, was to object to constraints that have been placed on you. Those constraints did not apply to that NOFA. The process Mr. Rutherford is referring to, you were free to write in any way you wanted. The bill language that you were objecting to, and we will save that discussion for another day, but the bill objections that you were objecting to applied to the requirements that had been in the NOFA for 2018, and then were applied from 2020 forward. So, I believe you may want to check and supply information for the record, and deal with Mr. Rutherford, in terms of that response. I believe you did have full flexibility in the 2019 process. Secretary Carson. All right. Thank you. Mr. Price. And then as regards the confusion about cuts in the Homeless Assistance Grants budget, your budget specification shows a $4 million cut from the level this committee provided in fiscal 2020. So, again, there may be some confusion here. I believe what you are doing is comparing your request from last year's budget request, which indeed is an increase. But compared to the funds we provided it is a cut. I think that also will prove to be the case for homelessness. Secretary Carson. For Homeless Assistance grants? Mr. Price. That is right. Secretary Carson. But for homelessness, the entire package of homelessness, 2.8 is more than what was granted last year. Last year it was like 2.6-something. Mr. Price. All right. We probably will need to clear this up for the record. But the appropriations for 2020 was 2.777, the 2021 request is 2.773, close, but not an increase. Secretary Carson. I think I have to go back and look at the numbers that I have because they are little bit different. Mr. Price. All right. We will clear it up for the record. Ms. Torres? Ms. Torres. Thank you, Mr. Chairman. And thank you, Secretary Carson for being with us today, and for visiting the district. I am going to associate myself with several comments that the 3 Mayors, Former Mayors have made here, including myself. This is the fourth time that you have here before our Committee, and each time, you know, you have defended budgets that drastically cut critical housing benefits that help millions of Americans, Americans in my community and everywhere in the U.S. Each and every time Congress has rejected those cuts in a bipartisan way, each and every time, so it is insanity that we would continue to push against what Congress has already been very, very clear about, that we do not support those cuts. For example, this budget eliminates the Public Housing Capital Fund. The first new housing resource in decades, exclusively targeted to build and preserve affordable housing. It also eliminates the Choice Neighborhoods Program, which provides resources to communities to build and rehabilitate affordable housing, and eliminates the HOME Investment Partnership programs, the largest Federal program dedicated exclusively to increasing the availability of adequate affordable housing for a very, very low-income families. In the Department's own budget, you cite a woman from Georgia, and I have blown up a printout of it for you. In your own words, you know, you talk about how this very successful story, how she transitioned from assisted housing, and highlight, you know, her success of becoming a homeowner, which is what we all strive to. The problem is that while you are promoting the story, and promoting the great work that all of you did helping her, your budget completely cuts this program. Given all the cuts, how can this Committee, and more importantly, the American people, take this administration seriously? That you really want to deal with homelessness in our community? That you really believe that helping our local cities, and counties, and local jurisdictions; that they can do better when you are failing to provide the proper funding that they need? You know, as a Former Mayor, City Councilwoman and State Legislator, I take this seriously. And I also believe that the Federal Government has a role to play. Let me give you an example why we need to have some oversight, and ensure that we are providing assistance to our communities. Not in, you know, words, but actual funding. All of our communities are strapped for funding. They are working really hard to try to balance their budget every single year. In the city of Los Angeles, they had an issue with asbestos, inner flooring. Now, the city under OSHA, CAL OSHA, because they were exposing their workers, children, and the people that lived in those communities, and they refuse to stop issuing work orders, enforcing their employees to remove the asbestos flooring. They were given a LOFA violation. So in cases like this, of gross negligence, of gross incompetence, there is a need for the Federal Government to step in and say, we need to do better. And where are the funds to ensure that we are improving these housing units, so that children can grow up in an environment that is healthy for them? So, I would like for you to address some of the comments that I have as it relates to these horrific cuts that you are proposing. Secretary Carson. It is very difficult to get the concept across that I like those programs. I think they are good programs. Can we afford them when we continue to create the kind of debt that we are going to pass on to the next generation and ruin their lives. Ms. Torres. I agree with you 100 percent. I was in a State Legislature when we shut down California for 6 months. We had a $15 billion deficit. However, the Republican Congress has proven that they are not serious about doing that. When they gave those tax cuts for the top 1 percent, and put us trillions into--added trillions to our deficit. So how can you say that? Secretary Carson. Well, I am not saying that you should get rid of the program. I am saying that the program should be funded by the State. Not necessarily by the Federal Government. We have already demonstrated that these programs work, OK, that was good. But can you continue to do something, can you sail toward an iceberg that you know is going to kill you? Well, maybe you should change your direction. Ms. Torres. Maybe we should stop helping the top 1 percent, and start helping the poor working-class communities across America that are the backbone of our economy. And I yield back. Mr. Price. Thank you. Mr. Quigley? Mr. Quigley. Thank you, Mr. Chairman. Mr. Secretary, thank you for being here. I guess for us round four, I just feel obliged. Ms. Clark referenced the nondiscrimination guidance for LGBT individuals under the Equal Access Rule. Again, we have been talking about this for some time. Where we left it last year, you were not going to replace the guidance that instructs providers how to do this. And I want to paraphrase, I want to make it right. He said I wouldn't like the guidance you put up, and I believe presumably because in my mind it would allow or promote discrimination against LGBTQ, particularly the trans community. It is still not up. How does the program operate, how does the law that requires equal access work without guidance? Secretary Carson. Appropriate guidance is going to be put up, it is being worked on. But the reason that I said -- Mr. Quigley. For your reference, that is the third year in a row you have said that, sir. Secretary Carson. The reason that I said that, the reason I said you probably wouldn't like it, is because from what you have said in the past, you don't agree with my statement that everybody gets equal rights, but nobody gets extra rights. Mr. Quigley. Who gets special rights in non-discrimination? Secretary Carson. Well let's put it this way---- Mr. Quigley. You will find it is someone they have to get special rights just to use the shelter? Secretary Carson. I can tell you the answer. When you have a single sex shelter and it is there specifically for women who are abused, and then people come in who do not appear to be women but they say they are women and you have to accept them, does that impinge upon the rights of those women? We have a lot of documentation from those women that says it does impinge upon their rights. So if you can give, and I said this when I came to Chicago and spoke with your group, which I enjoyed being with them, I thought they were great people. But I said this, if you can show me how you take care of that individual who, the only thing you want to do is go on the basis of what they say their gender is, you can show me how to be fair to them and at the same time be fair to those women who are saying they are very uncomfortable with that, I am all ears. Mr. Quigley. You are the only person I have ever heard bring up that issue. And in 3 years, first of all, in 3 years we don't have the guidance, which belies any credibility you have that, respectfully, that this is ever going to happen. So that means in 3 years the protections haven't been in place. You have never documented what you just talked about and the extraordinary, I cannot even begin to imagine how people feel. So you are telling the trans community that because of how you perceive how some people react to them, it is OK to discriminate against them? Secretary Carson. I have lots of letters from women's groups. It is not just how I perceive it. Mr. Quigley. So let's just assume for a second that there is some people out there who object to this. You are saying that because some people think it is OK to discriminate, that you have to go along with that too, despite the law. Secretary Carson. That is not what I am saying at all. Mr. Quigley. But you are saying that if someone doesn't like someone else in that shelter, for whatever reasons, that you can allow discrimination against those people. Secretary Carson. No, what I am saying is we have to take everybody's feelings into consideration. You cannot just select a group and say that their feelings trump everyone else's groups. Mr. Quigley. It goes back to the basics. There have always been people who discriminate against others. What you are saying is those people have the right to do that and therefore the Federal Government can back up that right to discriminate. And let us understand---- Secretary Carson. That's not true. Mr. Quigley [continuing]. these are people who are going to be on the street. Is this discrimination that you are hearing about, is this based on, what, their notion of what their faith tells them it is OK to hate other people? Secretary Carson. I want everybody to be taken care of, and I have suggested---- Mr. Quigley. But they are not if they are not being allowed to participate because somebody else thinks it is OK to discriminate. Secretary Carson. I suggested that there are ways to do that. There are---- Mr. Quigley. And you are telling the trans community that they cannot make a decision as to what they are, that they are not best---- Secretary Carson. I am saying that no one's rights get to obliterate everybody else's rights. Mr. Quigley. You are pretty well obliterated when you are on the street and you are not allowed to be in the facility, you know, that's the fundamental right that is being taken care of, not your notion that someone else feels it is OK to discriminate. Secretary Carson. Can you do this for me? Can you, because I know you are passionate about this issue. Can you come up---- Mr. Quigley. I am as passionate as the people on the street. Secretary Carson. Can you come up with a way that is fair to all the different groups that are involved? Mr. Quigley. Yes. There is no discrimination. You cannot discriminate because there are some people who you tell us say they don't like other people because of the way they look. Secretary Carson. We agree on that. I am still asking you-- -- Mr. Quigley. We do not agree. First of all, I want to make clear we do not agree on any of that. Secretary Carson. I am asking you to come up with a solution that takes into consideration---- Mr. Quigley. The law says you cannot discriminate, that's my solution. Mr. Price. We will begin our second round of questions. And I want to start with an example that is very close to home for me. And I am sure you know about it already. The Durham Housing Authority has had well publicized problems involving carbon monoxide exposure, lack of heat, and numerous other issues. The development we are talking about is called Mcdugal Terrace. It received failing inspection scores for years, and that was not because of carbon monoxide. Carbon monoxide testing was not part of that process, but they still failed. Hundreds of residents, including families with small children, had to be evacuated due to high levels of carbon monoxide. And the housing authority is currently conducting emergency repairs and moving people in as fast as they can. It has become painfully obvious that our public housing stock has deteriorated to the point of mortal danger for residents. I want to thank your field office, the Greensborough HUD field office, the people who have assisted our housing authority. I understand that Durham is requesting funding from the Public Housing Emergency Capital Fund to reimburse some of these repair expenses. So I first of all want to ask for your commitment that HUD will continue to work collaborative with Durham during this crisis, and that you will ensure the delivery of any and all Emergency Capital Funds that Durham is eligible to receive. Secretary Carson. We have been working very closely with them, we want to make sure that they are taken care of. Mr. Price. So you are giving me that commitment today? Secretary Carson. Absolutely. Mr. Price. All right. Thank you, I appreciate that. I want to now broaden this a bit to recollect that deaths due to carbon monoxide poisoning were reported at South Carolina last year. And in that context, you indicated that you planned to move forward with the rule to require PHAs to install carbon monoxide detectors in certain units. And you referred earlier today to grants that you have released to purchase and install carbon monoxide detectors, but no rule has been issued yet as far as I know. So let me ask you a few related questions with regard to that. First of all, can you update us on the progress you are making in terms of releasing a proposed rule? And then the inspection process, if you could also respond to that. Last year you said you had just included in the inspection process a requirement that inspections check for working detectors. Is that still being done, and what results are you getting from it? And when you talk about inspecting and checking, are you not just checking about whether detectors are there, but what the carbon monoxide levels in the units might be? Secretary Carson. OK. Well obviously, like everyone else, we were devastated by the news about the people who died. And obviously that sparked a lot of activity. And that's why we went back and looked at the rules that were in place and enhanced those rules. But, you know, we want an actual law to be put in place so we are working with legislatures to actually put a law in place because that can be done a lot faster than the rule making process, and maybe some---- Mr. Price. Mr. Secretary, let me just interject that we passed such a bill in the House. The sponsor was Representative Chuy Garcia, passed in September, sitting on Mitch McConnell's desk. Secretary Carson. Well the Senate, as you know, is working on the bill as well, right? Mr. Price. You tell me. I hope that you are pushing them to do just that. We have had limited success. Secretary Carson. Yeah. Senator Scott and one of the Democrats is working with him on that. Mr. Price. Good. Well that is good to know. And we, as I said, passed that law here because we agree with you that a law would be helpful. But I wouldn't be quick to assume that you don't have the authority you need already. We are talking about very serious matters here, I think it is fair to characterize it as an emergency. You have a statutory mission to ensure that housing is safe, decent, and sanitary. Secretary Carson. I agree. Mr. Price. So my own view would be, and you said yourself a year ago that you planned to proceed with the rule. Secretary Carson. And we are doing everything we can but we want to get an actual law on the books regarding it. You know we have communicate with all of the public housing and assisted housing projects, we have made it clear to them that we expect that the carbon monoxide detectors to be in place and expect them to be working. We have made it part of the inspection process. As you know, we are revamping the entire inspection process with the ISPIRE system, National Standards for the Physical Inspection of Real Estate. And we have tightened that up. We have gotten rid of inappropriate inspectors, we have retrained inspectors to bring consistency to the process. This is a matter that is very, very important, and it has been going on for decades, and it is unacceptable. Mr. Price. Good. It has, and you are of course right that it is urgent. And I am trying to get as specific as I possibly can in getting your answer on this. Is there a rule in process, as you suggested a year ago, that we can expect you to be promulgating about this? Secretary Carson. We are working on a rule simultaneously as the Senate is working on the law. Mr. Price. All right. And then your inspections, I understood you just now to say your inspections do at this moment include inspections for the presence of detectors? Secretary Carson. That's correct. Not just the presence, but they have to be functional. Mr. Price. Functional detectors, that's what I mean. And carbon monoxide levels, that would be the way you test whether the detectors are functional, right? Secretary Carson. I don't know that the inspectors go in with some type of monitor to find out what the carbon monoxide levels are. Mr. Price. Would that be desirable? Secretary Carson. I am not sure that that's practical because---- Mr. Price. I believe that it is quite practical. In Durham just now we have been doing it in every single unit, and the results have not been happy ones. So it is a question of course to whether the detectors are functioning. Secretary Carson. Well the inspectors themselves. Maybe the public housing authorities might be able to do that. The inspectors themselves would be tremendously slowed down if they are going to go in and do a carbon monoxide evaluation on each unit. Mr. Price. All right. There are sampling techniques and other ways that one might approach some aspect to this, although every single apartment should be inspected for the presence of detectors. Secretary Carson. I agree. Mr. Price. I think we can agree on that. Secretary Carson. And it has to be functional. Mr. Price. All right. We are going to pursue this. We want to be kept apprised of the progress toward a rule being promulgated. We of course will work jointly on legislation, and the inspection protocols, of course. If you want to furnish any information for the record to clarify that, that would be helpful as well. Secretary Carson. I appreciate your interest in that. We are every bit as interested. Mr. Price. Thank you, sir. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you, Mr. Chairman. Mr. Secretary, I am pleased that you have again placed priority on homelessness, the issues of homelessness and homeless programs in your budget. Again, you requested I believe $2.8 billion for homeless assistant grants, again showing this commitment. There has been, as you know, Mr. Secretary, some significant progress done. But there have been some new challenges that have emerged. And according to HUD's most recent point in time count, homelessness increase in 2019 over the previous year with a particularly sharp spike in California, California cities and there's been some talk about that during this hearing. So can you describe HUD's strategy to address this sudden increase in homeless in some areas of our country now? While I ask that, let me just throw some thoughts out there. Obviously as we look at this challenge in some parts of the country, we shouldn't lose sight, as you know, Mr. Secretary, that there are some areas that have been real successes. Secretary Carson. Yes. Mr. Diaz-Balart. In Miami, Miami-Dade County has made great strides in reducing homelessness. Secretary Carson. Absolutely. Mr. Diaz-Balart. And you were down there when, in essence, to announce that great milestone, right, and basically nearly eliminating homelessness among Veterans in Miami-Dade County. So while we deal with some of the spikes, will you commit to working with a broad range of stakeholders to pursue, you know, policy changes in those areas that are not working? Secretary Carson. Right. Mr. Diaz-Balart. While still making sure that we, you know, we recognize that there some areas and some parts of the country where some really good things are happening. Secretary Carson. Absolutely. And, you know, you look at the areas where it is not working, you know, you are not taking care of mentally ill people, you are not taking care of drug addicted people. And sometimes there is a distorted view of what compassion is. They think it is compassionate to let people be on the street with filth, with feces, with urine, with needles, with people attacking them with all kinds of dangers. That's not compassion at all. Real compassion is getting those people into a place where they have a safe bed to sleep in, where they have those drug problems taken care of, where their mental issues can be dealt with, where their physical issues can be dealt with, and where you can provide the kind of wrap-around services that get them back on their feet. And that is what we are planning. Mr. Diaz-Balart. Let me talk again about an issue that we have had multiple conversations over the past, about CDBGR, right? This certainly does it but it hasn't been authorized. And so last, when was it, it was not this Congress, there was a bipartisan bill, the Wagner-Green bill, which would reauthorize, or actually not reauthorize, authorize, CDBGR, and it would in essence do two things. It would establish a permanent consistent guidelines for the program, which obviously potentially reduce the time that it takes for those dollars to get out. So I know what you would like, as we have had that conversation. Secretary Carson. Right. Mr. Diaz-Balart. And the second thing it would permanently establish a mitigation program, something that this subcommittee obviously I guess was on the forefront of creating. Again, to make our communities more resilient. So this bill is in the Senate. You know the old adage, Mr. Secretary, the other party may be the advisory, but the Senate is the enemy, right, of the House. But is that something that you support, that bill, and to have an authorized program as opposed to having to go through this process every time? Secretary Carson. I like the concept, and it is something that we have been proposing. Because it takes way too long after disaster to get aid to people. And if we can codify a lot of the things that are commonly done with all of these grants, we can start somebody on second base instead of home base in terms of getting around. And absolutely that is something that we support. Mr. Diaz-Balart. I actually wanted to talk a little bit about your self-sufficiency, which has been a cornerstone of your, I think as your time as Secretary. And your life story, obviously, I think gives some added legitimacy to this issue. In your budget you provide significant new funding for programs to help families achieve economic security. I guess you are proposing $90 million for Family Self-Sufficiency Programs. Secretary Carson. Actually $190 million. Mr. Diaz-Balart. What was that? Secretary Carson. $190 million. Mr. Diaz-Balart. $190 million. I stand corrected. And my time is running out, but I'd like to follow up with you on that, you know, what are the benefits, what are you looking at there? Because obviously you have, that's an area that I believe is something you are---- Secretary Carson. It is big for me because you know our people are our most precious resource and we are going to have to compete with places that have 4 times our population, China and India. If we don't develop our people, we are not going to be able to do it. It is as simple as that. Mr. Diaz-Balart. I look forward to working them, Mr. Secretary. Thank you. Mr. Price. Thank you. Ms. Torres. Ms. Torres. Thank you, Mr. Chairman. Secretary Carson, I want to talk to you about the mix status rule as it relates to families whose children may be citizens, the parents of those children may be legal residents, but grandma may be undocumented. HUD has regulations already to deal broadly with prohibiting housing assistance to non-citizens. Despite this, last year you decided to propose a change that if a family in Federally assisted housing has one person in the household who was not a citizen or without certain legal status, that the entire family would be kicked out of their housing unit. This rule could potentially put 55,000 children, throw them out into the street. I cannot imagine the compassion that you talked about earlier in dealing with drug addicts. I cannot imagine where the compassion would come from where we would write a rule that would put 55,000 children, kicked them out into the street. What type of an environment, a healthy environment, could they grow up in? Do you think a child living in the street today could accomplish as much as you have accomplished in your life career? I am trying to understand why we have a need to add more stricter regulations or, frankly, to be so mean spirited to families here in the U.S. Secretary Carson. Well let's talk about compassion. What about those hundreds of thousands of American families who have been on the waiting list to get assisted housing for years. Ms. Torres. But these people did not jump a list. These people were also part of that wait list. Secretary Carson. The Housing and Community Development Act of 1980, Section 214, specifically says that the Secretary of HUD may not grant assistance to them. And a subsection says it may not grant assistance to those who are aiding people who are not here legally. So as I said last year, and it stands today, if we don't like that, change the law. Ms. Torres. Well we can only do so much as far as changing the law. But you continue to push rules that are frankly kicking children and families into the street. I am not here to say you shall house people that don't have legal status, I'm talking about citizen children, children that have been born here that you will kick out into the street as a result of this rule. We already have regulations dealing with mixed status families. And the current regulations, what it does is it says that anyone living in that household should pay their fair share of that expenditure. So if the rent is $100 and four people live in that household, and one of them is undocumented, then the rent that we could help subsidize is $75; correct? Secretary Carson. Well that was not the original intent of the law or the way it was written, that was a loophole that was placed because they had difficulty determining who was here legally and who was not. That is no longer the case, you now have the same system and it's very easy to make that determination and therefore the law should be carried out as it is written. However, we have provided a 6-month deferral which can be reupped two additional times, 18 months. That's plenty of time to change the law if the body of Congress feels that it should be changed. Ms. Torres. There's no need for this regulation when we already have strict rules that address the concern. I want to move on to CDBG and elimination of community block grants. It's another elimination. These funds are critical to communities like my home city of Pomona, working class community. I think I've said this to you before, I can sit on my bed in my bedroom and hear gunshots every single day across the freeway from where I live. CDBG funds help our communities ensure that we are targeting very, very poor communities to ensure that the children have access to quality of life programs to help them succeed. So why would we cut those programs? Secretary Carson. Well, you know, I have explained it several times before but I will do it one more time. Ms. Torres. But I don't think you understand how critical they are. That's why we continue to bring this to the table. Secretary Carson. I have not said that they are not critical. What I have said is there may be better ways to fund them. I have also said that we are working on a revision of the rule and we are very close to completing that, it is going to be going back and forth to OMB and you will be seeing that very soon. Ms. Torres. Thank you, and I yield back. Mr. Price. Mr. Quigley. Mr. Quigley. Thank you, Mr. Chairman. Mr. Secretary, our last get together, the same theme but different topic. I am looking at two studies that analyze the data collected by the Home Mortgage Disclosure Act. And they found widespread discrimination, again, against same sex couples in the mortgage industry. One of the studies specifically examined loans insured by the Federal Housing Administration, or HUD, and found that gay male couples, especially those including a person of color, were significantly less likely to have their loans approved than white heterosexual couples with similar profiles. What is your department doing to address discrimination against LGBDQ people, especially people of color, in the mortgage industry? Secretary Carson. You know, we get about 8,000 complaints a year of discrimination against one of the protected classes. We have not received a lot in that particular category. Obviously I would detest such a thing. And if you know of specific cases, please let us know, our FHEO office is very active in pursuing such things. Mr. Quigley. Have you let it known within the Agency that you won't tolerate this especially relating to these issues? Secretary Carson. Absolutely. I have made it very clear. Mr. Quigley. We will pass these two studies on to you. In a related matter, your department has proposed rules that change the information that faith-based housing providers are required to provide the clients they serve. Imagine, I guess, individuals or families dealing with mental illness, substance abuse disorder, HIV/AIDS or homelessness seeking assistance. And what happens is the change that is being proposed by HUD, these people could be forced to receive these services from a faith-based provider, even though the beneficiaries know that this provider condemns them for who they are. The current regulation that you are seeking to change requires that the agencies inform them of their right to request an alternative provider. Your proposed rules give them no notice of this ability and no help with finding an alternative. These people possibly were getting absolutely no services. How does providing the beneficiaries with just a notice of their alternatives and their rights become a burden? Secretary Carson. As long as it is applied equally to every provider, it is not a problem. Mr. Quigley. But what you are saying is you are not letting the beneficiaries know that they have an alternative to go to a provider that doesn't discriminate against them. Secretary Carson. If no one else is required to do that, a faith-based organization should not be, everybody should be required to do the same thing is what I am saying. Mr. Quigley. Then my strong suggestion is that you change what you are modifying here and tell them that the rules apply to all providers. But if they are not faith-based, that the possibility that their objectives in their by-laws discriminate, you don't have the same problem. So what you are saying is fine, but you're not telling the faith-based people, providers, that they have to provide alternatives and let people know of their rights to alternatives under what you are proposing now. Secretary Carson. I would say if everybody has to say what all the alternatives are, I don't have a problem with it. If you are only selecting out faith-based organizations and saying they have to do it, that's discrimination. Mr. Quigley. Well, no, but we are talking about faith-based organizations that condemn the LGBTQ community in particular for who they are. And under the current rules that we are living under, that they have alternatives and here is what they are. That is not what you are talking about here. Secretary Carson. If they are faith-based organizations and their faith is based on the Bible, then they certainly should not be condemning anyone. Mr. Quigley. But they do. Secretary Carson. And I am saying that we are not getting those---- Mr. Quigley. Telling them it is OK. What we have been talking about for 4 years. Secretary Carson. We are not getting those complaints. Where are they going, who are they complaining to? Mr. Quigley. There is a reason that all these rules got put in place. With all due respect, if you don't understand that the trans community and the LGBTQ community as a whole haven't been discriminated against, the person who believes that has been living under a rock. Secretary Carson. I am not saying they are not discriminated against, I am saying we are not getting the complaints. Where are they going? Can you help me understand that? Mr. Quigley. Well, we are past our time, but we obviously need much longer time to talk about the fact that these rules allow this discrimination to take place, and people, as a result, won't be provided these services. But my time is up again. Mr. Price. Thank you. Mr. Secretary, let me return to the public housing maintenance needs and the capital fund. We discussed the situation in Durham. It is the tip of the iceberg I am afraid in terms of the deterioration of public housing stock. This subcommittee has provided sizeable funding increases in the last three fiscal years, but we recognize that we are still falling short of what is required. I am just puzzled by this budget request at exactly how we are supposed to interpret your approach to this. It looks like a shell game, and I hope you can show me why it isn't, you know, how this all adds up. But just indulge me a minute here. You first of all eliminate the Public Housing Capital Fund. Now you move some funds to a new Public Housing Fund which is really what's now called the Operating Fund, but then you proceed to cut that fund by $977 million. You move funds into a Moving to Work account with tenant based rental assistance, but this is not new money. You seem to want to eliminate public housing and move everyone into voucher programs via RAD conversions. So a certain amount of the public housing is going to be converted, and that is taking place in Durham and other places, we know that it has some promise. But an immediate conversion, universal conversion, that isn't going to happen. And even when it does happen, it would require a corresponding increase in voucher programs and the rental assistance. But you are cutting that too. You cut voucher renewals in TBRA by $371 million, end up a billion short of what is required just to cover current services. So I am just asking you, what's going on here? I mean I understand some of the proposals to move people out of public housing and to rely less on public housing, but then those alternatives are not funded. So how are we to interpret this, and where do we start? Secretary Carson. Well first of all let me just say that the vouchers have not been decreased, and there no people who are receiving vouchers now who are going to be eliminated from them secondary to this budget. Number two, you know, the budgetary process is a bilateral process. That means, you know, the President presents his budget, you know, Congress has their budget, the Senate has their budget. And after all is said and done then they arrive at a number. I understand that. And whatever that number is, obviously we will utilize it in a very most appropriate way. But just because the President's budget does not agree with the Congressional budget doesn't mean that we haven't taken into consideration all of these different people that we are trying to serve. But there are different ways to be able to handle these issues. The RAD program being an excellent example, and one of the reasons that we have requested $100 million to help, you know, bridge some of the gaps. Congress has not seen fit to provide that even though they agreed that the RAD program is a good program. They have not agreed yet to lift the cap on RAD. That's a problem because many of the revitalization programs don't occur next year or the year after that, they occur 4 or 5 or 6 years down the road. People need to have the assurance that the program is going to be there when they are trying to create these revitalization programs. So, you know, we are looking long term at these things and that is why the proposals are the way they are, not just for next year. Mr. Price. Well once again we seem to have a disagreement as to what the budget actually contains. I think there are two aspects of this if I may break it down this way. One is the prospect of immediate and universal RAD conversions. You seem to be assuming that in budgetary terms you seem to be assuming that. Secretary Carson. Not at all. I know that it cannot happen immediately. But it could help tremendously if the $100 million was provided. Mr. Price. Well the RAD conversions on any scale are going to require more in the way of section 8 assistance. I mean that is the whole idea of RAD is that these become subsidized rental units. And as I said, that is not by any means totally a bad idea. Secretary Carson. Right. Mr. Price. It may not be the silver bullet, but---- Secretary Carson. But it is a conversion from tenant based to project based. Mr. Price. All right. So I don't see the increase in tenant-based rental assistance that that would require. In fact what I see here, and I am looking at this budget line, tenant- based rental assistance goes from fiscal 2020 enacted is $21 billion 502 million, your fiscal 2021 request is $21 billion 131 million. That's a substantial hundreds of millions of dollars of a reduction in the program as it now stands, let alone any kind of increase that large scale RADS would require. Secretary Carson. If you want to send in your budget people over to talk to my budget people, they can show you where there is no one who is going to be negatively impacted by this. Mr. Price. Well all right. That would appear to be budgetary magic because just on the face of it the rental assistance is, we---- Secretary Carson. I have insisted that we make sure that we don't penalize any of the people that we are supporting. Mr. Price. All right. Well we certainly share that objective, and we will see what the numbers require. We have written numbers into our budget for the last 3 years, Mr. Diaz- Balart did the same thing to ensure that we could cover all the current contracts and it certainly was nothing like what you are proposing. But my main point here is that the absence of this public housing support is not accounted for anywhere else in the budget, that's why I call it a shell game. And I would welcome a demonstration as to where this money is in your budget proposal. It just seems like everything is cut and you say they are going to move to this but then that's cut. Secretary Carson. Well the people who have been impacted by the cut from $23 billion to $18 billion, those are the same people who are going to be assisted in the $5 billion that was put in the Family Self-Sufficiency Program. Mr. Price. All right. We will work with you on getting these numbers clarified. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you very much, Mr. Chairman. Mr. Secretary, I think some of the most exciting activities taking place in our public housing authorities is through the rental system demonstration. And obviously, you know, when capital funds there is never enough, right? When capital funds are squeezed I know that innovative PHAs can turn and use this tool, frankly, to make improvements, right, in their housing stock. So I have heard that to, and I represent 3 counties in Florida, and I have heard that particularly from the director of the largest PHA that I represent is Miami-Dade County. And I know they use it rather effectively, but I also have other areas that have smaller housing authorities. And so are there ways that we can help those smaller authorities that are not as big as, for example, Miami-Dade to also utilize that tool, which I think they have a more difficult time to do, right? Secretary Carson. Well the key is giving them the ability to have fungibility, you know, with the operating and the capital funds. And to be able to use them in an unrestricted way. And that makes a big difference. And then, you know, also recognize that many of these places are in opportunity zones where there are opportunity funds. We haven't even begin to talk about how opportunity funds are utilized to help to create economic activity. Mr. Diaz-Balart. Mr. Secretary, the time that I have left, let me just, I happen to be a big fan and I mean this sincerely, in this area of, you know, the fact that you are not supposed to say anything nice about anybody from the other party. But I happen to be a big fan of Congressman Quigley, he is a brilliant guy, he is an active guy, and he is a legitimate fighter, and very effective. And so I wish he was here because I greatly respect and admire, and he has always been, I consider him a freedom fighter, right. But I just want to kind of throw something at you in a different way, referring to the conversation that you and him were having back and forth. You were born in 1951, I believe. Secretary Carson. Right. Mr. Diaz-Balart. And you weren't born with a so-called white privilege I believe. You know, the United States has changed a lot, I think for the better in so many ways, and particularly when you talk about discrimination, all right. So, this job, you are not doing it because it has been a pay increase for you? Or maybe it is because it is less stressful than other things that you have done in the past. I know that brain surgery has got to really stressful. So, I just want to kind of, in this time that I have left, describe a little bit why. Why is it that you have, and I think I know the reason because I have gotten to know you, but why is it that you have taken a huge pay cut, this is--you get criticized every day. So, why is it that you decided to take this job when the President called you to be Secretary of HUD? It is not exactly the most--you know, the least stressful or the easiest job in the world. Secretary Carson. I will tell you, it is very easy. It is because I saw that it was going to be a terrible thing for me to do, but I realized that there are a lot of people who came before me. And if they all took the easy road and the relaxing road, we wouldn't have the country that we have today. Mr. Diaz-Balart. But you have never taken the easy road. Secretary Carson. No. Mr. Diaz-Balart. I mean, you have never had it given to you. Secretary Carson. That is for sure. Mr. Diaz-Balart. So, is that why, though, your commitment to those who are least fortunate is so---- Secretary Carson. That is why, you know, I recognize that with some opportunities, some changes, and some help climbing that ladder, it is an enormous amount of potential and we just can't afford to waste that potential. Mr. Diaz-Balart. Mr. Secretary, I will tell you, you have been accessible to me. You have made your staff accessible to me. I think you took a department that had great people but had some issues and you have turned it around. And so, I just for one will tell you that I am glad that you took this slight pay cut and have decided to take on a very difficult task. But I think you have done a job that, again, merits our respect, our admiration. Secretary Carson. Thank you. Mr. Diaz-Balart. And I don't think anybody would disagree with that, so thank you, sir. Secretary Carson. Thank you. Mr. Diaz-Balart. Thank you. Secretary Carson. And thanks to you all for what you did, too, because it is a big pay cut, too, and a lot of criticism. Mr. Diaz-Balart. And Mr. Chairman, again, I think as always, you have led this hearing like you lead all the hearings, with fairness and thoughtfulness, so thank you sir. Mr. Price. Thank you, appreciate that. And we will move to the conclusion here with what I think will be a quick question. But I do want to get one more thing on the record if we can all just hang in here a few more minutes. And it does have to do, Mr. Secretary, with what you referenced in your opening remarks about the appointment of Mr. Couch as the Federal financial monitor for disaster recovery funds for Puerto Rico and the U.S. Virgin Islands. I appreciate his qualifications and I take it at face value what you said about your desire to expedite this process. But I do have to say that the evidence is a little mixed so far and I want to just ask, I hope, some helpful questions about it. On January 22, we requested basic information on the monitor. We haven't received any answer to that request. So, we could--we would like to know what the duties of that monitor are going to be, the authorities the monitor has, and from what statute are those authorities derived. And then, for the record, if you could provide perhaps an organizational chart of the reporting structure of the monitor, including who is supervising above and what the staff looks like below. I say it is not particularly reassuring to not be able to get those basic questions answered. We want to make sure that what you stated turns out to be the case, that he is not a hindrance, this isn't just another bureaucratic layer. Secretary Carson. That is fair. Mr. Price. But that actually it is a constructive partner, he is a constructive partner, and that this appointment is helpful in moving forward these recovery efforts in both Puerto Rico and the Virgin Islands. Secretary Carson. We will get that for you. Mr. Price. Perhaps today you could just lay out the answer to those basic questions as to what those duties look like and where the authorities come from. Secretary Carson. I can tell you that very quickly. The authorities come from the Secretary. We give him the authority to monitor the grant agreement, make sure that it is carried out appropriately, to look at the procurement sources to make sure that they are in alignment with the requirements. And this individual is weekly meeting with our senior staff that is in concern with that particular endeavor and once a month, meets with me as well. And the monitor really is sort of a consolidation of lots of different areas that we control and it makes it very easy for the governor, for the head of Vivienda to get answers and to get results by having just one person that they have to go to. Mr. Price. So, as I understand your answer, you are not citing any particular statutory basis for this appointment. You are saying that the monitor is acting as an extension of your administrative responsibility and the reporting structure is to you personally. Secretary Carson. The reporting is to the head of CPD. That is the way it is set up. Mr. Price. All right. I think we do need some clarification. I would still like to see that organizational chart. Secretary Carson. We will have that sent to you. Mr. Price. All right. And a more precise indication, if you will. It is the question of what kind of authority this official has and this is not just an informational position presumably or an oversight position. What kind of authorities are located in this position and how does it operate up and down the line? That is what we are looking for. Secretary Carson. OK, we will give the whole organizational chart. Not a problem. Mr. Price. All right, I appreciate that. We will look for that. And with that, we thank you again for appearing and for your work and that of your associates at HUD. We look forward to continuing to confer on these matters raised today and I am sure much, much more in putting together a first rate workable budget for 2021. Secretary Carson. Thank you so much. Mr. Price. You will have questions for the record probably from a number of our members. If you would return the information, the answers to those questions, information for the record within 30 days from this Friday, that will let us publish the transcript of today's hearing in a timely fashion. Secretary Carson. Sounds good. Mr. Price. Any final comments, Mr. Diaz-Balart? Mr. Diaz-Balart. No, thank you very much, Mr. Chairman. Mr. Price. Thank you. With that, the hearing is adjourned. Secretary Carson. Thank you. [Material submitted for inclusion in the record follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, March 11, 2020 ---------- FEDERAL AVIATION ADMINISTRATION BUDGET REQUEST WITNESS STEVE DICKSON, ADMINISTRATOR, FEDERAL AVIATION ADMINISTRATION Mr. Price. The hearing will come to order. Good morning, everyone. Welcome to our third Subcommittee hearing of the season. Today we'll examine the proposed fiscal year 2021 budget for the Federal Aviation Administration. We are pleased that for the first time ever before this subcommittee to have Administrator Steve Dickson on hand to testify and answer our questions. We appreciate you being here. The FAA provides critical services on behalf of the traveling public every day. Millions of flights, both scheduled and unscheduled, must safely navigate our national airspace, the most complex in the world. This year's FAA budget request, $17.5 billion in budgetary resources, a decrease of about $96 million compared to last year's enacted level. Overall, the request is essentially flat, it eliminates $400 million for supplemental airport grants, and then increases funding for the operations account, by $372 million, mostly to cover salary and retirement benefits. Funding for the facilities and equipment account and the research engineering and development account, see modest reductions. FAA identifies about $1 billion in proposed NextGen investments in their budgetary request. That would allow the agency to continue efforts to modernize the air traffic control system, improve efficiency, and transition legacy equipment to new platforms. Emerging technologies including unmanned aerial systems and a burgeoning commercial space industry hold great promise to revolutionize the national airspace and boost our economy, but they do pose challenges to the existing regulatory framework. A total of about $144.5 million is requested for UAS programs, and another $44 million for commercial space activities. Yesterday was the 1-year anniversary of the Boeing MAX tragedy in Ethiopia which killed 157 people. This Friday will mark the 1-year anniversary of the FAA order that grounded the MAX indefinitely. These two anniversaries do remind us that safety must be the FAA's highest priority. The public and the Congress expect complete transparency, as the FAA works to safely return the MAX to service, and evaluate outside recommendations to reform their oversight procedures and the certification process. Numerous committees and expert review bodies have identified various areas of potential improvement for FAA's regulatory procedures. Some recommendations such as bolstering human factors and system safety expertise, are about acquiring new skills and incorporating this knowledge into the certification and flight standards process. Others are specific to Organization Designation Authority, or ODA, which has come under scrutiny in the wake of the Boeing disasters. Initial reports suggests that private sector employees who possess this delegated authority may face undue pressures from management to prioritize production timelines, over the safety of the traveling public. That is never acceptable. FAA oversight of ODA must extend not only to ensuring a workable division of labor between the agency and private firms, but also, above all, to ensure there is no slippage, with regard to relentless attention to safety, in the maintenance of a safety-first culture. I would like to underscore that the recently-enacted Fiscal 2020 Omnibus package, directed FAA to respond to each recommendation and report to the Appropriations Committee about any resource or funding needs. The agreement also included targeted investments to jumpstart this process including $6.8 million for salaries and expenses of additional staff with expertise and human factors, system safety engineering, software, data analytics and other valuable skills, $6.2 million to cover the cost of technical training and credentialing for flight operations, aircraft certification, and other specialties that support aviation safety, $3 million for FAA to provide guidance and training to international civil aviation authorities, foreign air carriers and other stakeholders to better understand U.S. safety standards, and how to integrate U.S.-manufactured aircraft into their own regulatory frameworks. I am glad to see the FAA's budget request proposes $70 million above the enacted level for the Office of Aviation Safety, and other staff offices to improve FAA's safety oversight. I look forward to learning more about the activities described in the request and how they complement these investments, ongoing investments that I just described. Of course we know that funding isn't everything, resources must supplement the right policies, the right people with the right skills, and again, a culture that prioritizes safety above all else. We are closely following the work of Chairman DeFazio and our authorizing partners, on the Transportation and Infrastructure Committee. Last week they released preliminary recommendations from their Boeing investigation. We look forward to reviewing legislative proposals that emerge from their extensive inquiry, and working with them to ensure that FAA has appropriate funding to make any necessary changes. Finally, I hope we can spend some time today, understanding the FAA's role with respect to the public health threat posed by the coronavirus. Are you working with CDC, for example, to get guidance to airports, airlines and the traveling public? What role is the FAA playing in the administration's taskforce? What should the American people know about their health risk if they choose right now? Administrator Dickson, the FAA and its dedicated employees have an exceptionally challenging mission, one that is vital to our safety, economic well-being, and international competitiveness. I look forward to your testimony today, and working with you to ensure that FAA has the resources required to carry out its considerably responsibilities. I would now like to recognize my partner and fried, Representative Mario Diaz-Balart, the ranking member of this subcommittee, for any remarks he might have. Mr. Diaz-Balart. Mr. Chairman, thank you very much for recognizing me, and far more importantly for holding this important meeting. Administrator Dickson, welcome to your first appearance before this subcommittee; I was struck, Administrator, by frankly your unique qualifications for this job. I don't know if there is anybody that we have had, who has been more qualified for the job that you are now holding. So, 10 years you served as an Air Force Fighter Pilot, then spent another three decades working for major airlines as a commercial pilot, and I noticed a number of different aircrafts, also as an executive. I know this background is serving you well, as you lead the FAA at a particularly challenging time as Mr. Chairman just mentioned. It has been a year since the Boeing 737 MAX was grounded, and following the tragedies in Ethiopia and Indonesia, and I know you are hard at work in dealing with those issues. I look forward to hearing about the status of that review, and how you plan to take the lessons learned from this review to improve the certification, and other processes, safety programs at the FAA. The FAA is, and must continue to be a world leader in aviation and safety, and I am proud of the work that Chairman Price and I have in the subcommittee, and done over the years to support your agency to make sure that you maintain that global leadership role. We have done so through supporting air traffic controller and safety inspector workforces, along with investment in NextGen technologies. I am pleased to see that in the Fiscal Year 2021 request for the FAA, and you provide full funding for the controllers and inspector workforce, we have also targeted investments for safety initiatives. Again, very pleased to see that. The budget request also includes good news for the NextGen programs, something that the Chairman and I have, frankly, spent a lot of time on. With almost 3 billion in the facilities and equipment account to both maintain our current infrastructure, and obviously also to invest in new technologies. Mr. Administrator, I will tell you, you may not know this, but it is the first budget request in years that does not include a number of budget gimmicks. And so, that has happened for years. I was almost taken aback that you didn't do that, but I am very grateful that your budget recommendation does not do that. And so again, I congratulate you for this common-sense approach, especially when our focus must be to maintain the global leadership in aviation, and also supporting the talented workforce, that so many of us, by the way, meet as we go back and forth to the various airports around the country. Mr. Administrator, I also want us to not lose sight of the important work that the FAA is doing to foster innovation in the airspace, while you work to establish new, efficient routes based on satellite technology, you are also dealing with new entrants into the airspace. Again, technology is changing rapidly. And so that includes unmanned aircraft in commercial space vehicles, and that obviously is a challenge, but it is also a great opportunity. So these technologies present an almost, frankly, incomprehensible number of opportunities, and we want to make sure that you have the tools to meet those challenges. And finally, as the Chairman mentioned, my friend mentioned that the coronavirus is obviously something that is on everybody's mind, it is an all-of-government approach to dealing with this, and as it needs to be. And I know that you have some key responsibilities, helping to facilitate communication with the aviation industry, and also, as we were talking about briefly before the meeting, making sure that your folks, are safe and available to do the very important job that they have to do. So, just know that we are here to provide you all the support that you need, all the help that you need to fulfill this role. And we look forward to your update today, and to continue working with you. And so, again, thank you for being here. And with that, Mr. Chairman, I yield back. Mr. Price. Thank you. Mr. Administrator, we are happy to have you proceed now. Your full testimony will be put into the record. We are inviting you to speak for 5 minutes or so, and then we will have lots of questions. Thank you. Mr. Dickson. Thank you, and good morning, Chairman Price, and Ranking Member Diaz-Balart, and members of the subcommittee. Thank you again for the opportunity to discuss the administration's fiscal year 2021 budget request for the FAA. Before I begin, I would like to say a few words about the 737 MAX. As you know, our international air transportation network is a tightly woven fabric. It is vital to the world's economy. When that fabric rips, we feel the impact globally. We have to look no further than the Lion Air and Ethiopian Airlines Boeing 737 MAX crashes to understand this. On board Ethiopian Airlines Flight ET302, which as noted did crashed 1 year ago, yesterday, were the citizens of 35 countries, and on behalf of everyone at the FAA, I would like to, once again, extend our deepest sympathy and condolences to the families of the victims of both accidents. We will honor the memory of those who lost their lives by working tirelessly every day to ensure the highest possible margin of safety in the global aviation system. The administration's $17.5 billion request also honors those on board by funding a broad array of new safety enhancements, while maintaining the day-to-day operations of the safest, most efficient and complex aerospace in the world. The budget includes $15 million for the staffing and infrastructure enhancements we need to begin implementing the various recommendations we received following the MAX crashes. That input, which we welcome, includes moving toward a more holistic versus transactional, item-by-time approach to certification, integrating human factors considerations more effectively throughout the design process and finally, promoting an environment of just culture and Safety Management Systems for all industries involved in the aerospace system. To support these themes we are requesting $5 million to recruit additional specialized skills, such as more human factors experts and software engineers, and $5 million for a new system that tracks employee training, qualifications and certifications to ensure our aviation safety workforce has the skills and knowledge required to execute our programs. We are requesting $7 million to stand up a new office to oversee all Organization Designation Authorities or ODA in line with congressional direction. The budget includes almost $5 million in new funding to support improvements to several safety oversight systems such as Aviation Safety Information Analysis and Sharing, or ASIAS, and the Aviation Safety Reporting Program. We are requesting an additional $13 million to safeguard against internal and external cyber threats as well as to protect our new technologies against the threat of cyber-attacks. Along with investments in aviation safety, the budget will fund efforts to integrate new entrants into the national airspace system. It will also operationalize new technologies and systems to modernize how we manage traffic and make important investments in our Nation's aviation infrastructure. We will provide nearly $1 billion for NextGen investment supporting the NextGen Advisory Committee's priorities, including initiatives for traffic flow and metering tools. These efforts will continue the operationalization of NextGen to unlock benefits for all the users of the National Airspace System. We will also invest in innovation with $144 million for work related to unmanned aircraft system, or UAS, nearly one- third of which will be used to further develop an unmanned aircraft system traffic management solution commonly called UTM. UTM is a critical enabler of the more advanced uses of UAS such as package delivery and urban air mobility. For commercial space activities, our request of more than $44 million will speed the processing of licenses and approvals and streamline regulatory requirements. These funds will also help the FAA continue to advance the integration of space operations into the National Airspace System via automation tools such as the Space Data Integrator or SDI. Our $3.35 billion request for Airport Improvement Program grants reflects the FAA's commitment to our Nation's infrastructure and provides the funding needed to ensure safety, capacity and efficiency at our Nation's airports. It supports our continued focus on safety related development projects including projects to reduce runway incursions and to reduce the risk of wrong surface takeoffs and landings. In conclusion, this budget is a reflection on the importance of aviation to our Nation's economy and the work the Agency needs to continue to pursue in order to continue to enhance safety and stimulate innovation. Through the continued investments in this budget, the FAA will remain the world's aviation leader. And now sir, I am happy to take your and the Committee's questions. Mr. Price. Thank you. I will start and we will focus in on the Coronavirus situation that you are confronting. Your regulatory and oversight responsibilities are----take place at several levels. I want to concentrate on the possible transmission of contagious diseases on commercial flights. Health screenings prior to boarding aren't fool proof as we all know. Once on board, both passengers and crew members are breathing in recirculated air, are in close proximity and so forth. So, could you tell us what the FAA requires with regards to the quality of the air circulating inside airplanes and the cleanliness of the surfaces inside those airplanes and what you are doing to enhance both of those situations. What guidance are you giving? Is the CDC giving you with regard to transporting and tracing sick passengers and can you also clarify the FAA's role with regards to the White House task force? The overall task force overseeing the effort. Mr. Dickson. There are several aspects I will undertake just in broad terms. As was mentioned earlier, we have a whole of government approach working within the task force. The Department of Transportation is part of the task force and the FAA is supporting those efforts. The lead agencies are CDC and Homeland Security. But as the focal point for aviation, the FAA has played a key role in ensuring that CDC guidance and information is provided in a timely fashion both of the traveling public, to flight crew members and to all stakeholders in the aviation system including our own employees in the FAA as well. Today alone, I believe we have 12 to 14 scheduled contacts and a number of offline conversations as the situation continues to evolve. In terms of your question on air quality, there are specific standards that regulate the quality of air on aircraft. Specifically, there has to be sufficient ventilation and lack of contaminants in the air in terms of noxious fumes and things like that. Also, the cabin air altitude cannot be above 8,000 feet and air carriers are required to report any deficiencies in terms of air quality on aircraft in terms of smoke and fume events. Working with the CDC and also the process by which aircraft are designed and have been studied over the years, the air quality within commercial aircraft is on par with what we see in public buildings and also within homes. And so, the risk to the public is no higher than it would be in any area where you have folks gathered. So, the same criteria really apply in terms of considerations the CDC is providing. In addition to that, all the air carriers have reviewed their cleaning protocols, the substances they are using both on the flight deck and back in the passenger cabin. Those requirements, the CDC has updated them within the last week and we have provided that information to air carriers. I have several examples I can share with the Committee if you would like on additional measures that the passenger carriers are taking to ensure sterile surfaces on the aircraft. Mr. Price. I think there is a good deal of public, certainly apprehension, maybe misunderstanding about this air quality question. How is it that that degree of purity, freedom from contaminants can be maintained? Is there a way of enhancing that and as a generalization you just made that does apply to pathogens, to airborne pathogens? That one is to conclude by virtue of what you just said that that risk is no greater than it is in normal public places? Mr. Dickson. Yes, sir. The ventilation requirements as aircraft are designed and certified require that they meet certain standards in terms of adequate ventilation on the aircraft. Specifically, if you have an issue with fumes, pollen, those types of things, these things are required to be reported by the airlines. And if there is any indication that there is a problem with the system on the aircraft, they have to report that. But we do see that the research that has been done over the years is that there is really not any significant difference in what you would have in a building such as we are sitting in today in terms of air quality. Mr. Price. Thank you. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you, Mr. Chairman. Sir, I understand that the FAA is about to undertake an airspace Metroplex redesign in south Florida with obviously potential airplane noise impacts for individuals in communities close to Miami International Airport. As you know, Miami International Airport is almost in the middle of town, right, and there is not a lot of flexibility. So, let me throw a couple questions at you, let me throw them all at the same time and you can answer them as you see fit. What is that schedule for the airspace redesign? What are the FAA's plans to engage the community as far as noise impacts of the redesign? And I know that there already have been, I guess, some public hearings and meetings already took place. Will there be a dedicated staff group or people to engage with the community? And I think a key one too is having you considered putting one person who is the go to person as opposed to just having, you know, people's complaints are always, you know, who is in charge, who is accountable. I think that would be very helpful as well. So, those are the issues I wanted you to kind of discuss with me. Mr. Dickson. Well, thank you for the question. As you noted, there is an ongoing project to redesign the airspace in central and south Florida that is underway. There have been a number of workshops, I believe 20 workshops within the last year in terms of engaging congressional staff and local officials as well. There are another 17 that are planned for this year and we have scheduled public meetings. We have another 20 scheduled. In terms of the--where the process itself stands, we are undergoing the draft initial environmental review of the project. Which we expect to be completed sometime later this spring. And then there will be a comment period and that will be finalized this fall. The actual flight procedures themselves will be implemented as we move forward in the calendar year 2021 probably between the spring and the fall in several tranches of improvements. In terms of a single point of contact, we use our regional administrators as the point of contact. In addition to that, we have currently 8 noise community engagement officials. We are asking for three additional ones. And we deploy those around the system wherever the need is. Because as we have various projects that are implemented, they are subject matter experts but they are not tied to a specific geographical area because we have projects going on in various parts of the country where we can use those resources. Mr. Diaz-Balart. Good. Let me, in the same vein but the, what is it called, the CLEEN program, whatever it actually stands for, Continuous Lower Energy Emissions and Noise Program. We have invested, the subcommittee has invested about $125 million in that program since 2010. And again, to help industry develop more efficient and quieter engines because that would be--that would go a long way to solving the issue, right? So, if this succeeds, it would obviously again, cut down on a lot of the concerns that most people have is noise related. And so, what progress has been made by this program to reduce potential to make quieter engines? And what further progress do you expect, you know, within the next 5 or 10 years? Is this something that you think has promise? Mr. Dickson. Well, thanks for the question, it is a great point. The newer generation jet engines are quieter than we have ever seen and more efficient frankly and more environmentally friendly than we have ever seen before. And the CLEEN program over the years has allowed us to bring industry together to pursue those design concepts. In fiscal year 2021, we are asking for an additional $18 million to keep the project going. And you have also seen tremendous fleet renewal by the large U.S. carriers over the last 5 or 6 years as they have been financially able to replace older aircraft. So, we have seen hundreds of narrow body orders that also are our highest frequency and highest cadence users of domestic U.S. airspace. So, that has been a benefit because it has also brought on more efficient air frames as well as more efficient and lower noise profile engines as well. Mr. Diaz-Balart. So again, they are quieter and more efficient and cleaner. You may not have to eliminate aircraft travel after all, Mr. Chairman. I yield back. Thank you. Mr. Price. Thank you. Ms. Lawrence. Ms. Lawrence. Thank you. Mr. Dickson, since arriving in Congress it has been a passion of mine to fight for women's rights and increasing women opportunities in what some would consider untraditional fields of study. That includes numerous positions within the aviation industry. As you know, throughout history, women have been grossly underrepresented in the aviation industry. Accounting for only 6 percent of pilots and 4 percent of flight engineers. As co-chair of both the women's caucus and the skilled American workforce caucus it is my responsibility to ensure that every little girl that aspires to be the next Amelia Earhart or Betsy Coleman has the proper resources to do so. And as the administrator of FAA, I would argue you you have that same responsibility as I do. In 2010, the FAA established the Educational Partnership Initiative. A program meant to focus on the relationships between institutions representing underserved groups in diverse populations such as aerospace studies, science engineering, air traffic control. In particular, this is the exact type of program that the government should be prioritizing. But unfortunately, I am uncertain whether that is happening. So, could you please provide me today with the status of the educational partnership initiative and how the Department looks to build upon the program. Mr. Dickson. Well, thank you for the question. And I am in the strongest agreement I can possibly be. That we need to eliminate barriers to women and underserved portions of our population to show them what great opportunities there are in aviation. Because it is a tremendous career and I think that a lot of times young people don't see it as something that they can do. I will have to get back to you on the specifics of the program that you mentioned. But we do have a number of initiatives working with the Department of Transportation, other Federal agencies, academia, the private sector, to promote aviation careers and eliminate barriers to those who want to take advantage of those opportunities. [Mr. Dickson responded for the record:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Lawrence. So, Mr. Dickson, please provide and if you don't have, I think there should be a dedicated study on how you can include and embrace and do programs to introduce more women into your work force. In my district over the past few years, thousands of families have been exposed and impacted by PFAS contaminants. The toxic substance is included in firefighting foam which commercial airports are mandated to use throughout their operations. Under the 2018 FAA reauthorization bill, however this mandate changed. The 2018 bill provided that commercial manufacturers are no long required, aircraft manufactures are no longer required to use PFAS chemicals in their fighting foam. Can you, as you know, PFAS is extremely dangerous. Can you please discuss when the FAA expects the final--to issue the final regulations provision that exempts commercial airports from using the toxic PFAS in firefighting? Mr. Dickson. Well, thank you for the question. And there is a lot of work going on in this particular area. In fact, we opened up at our tech center in New Jersey, in January, we opened up a new $5 million facility that is designed to do this testing. And we are doing baseline testing of the existing products out there now. And we are working very closely to do this work with the Department of Defense which does the initial certification. And a very similar product that we use for civil aviation in airports. So, we are in the process of determining what alternatives are available out there. That will take some time. In the short term, what we have done is we have made available airport improvement grants for airports to be able to purchase with that grant money equipment that when they are required to test their firefighting equipment, it doesn't actually discharge anything onto the ramp or onto the airport property. So, that will mitigate many of the short term effects of what we see because they will be able to keep all of that contained within the unit. And that is a brand new capability. Ms. Lawrence. So, my last question, I am glad you are working on it. Do you have a timeline when we can expect that you will be in compliance with eliminating PFAS from the firefighting? Mr. Dickson. It will take a while to do the research. At this point, there has not been a substitute out there that has the effectiveness in putting out an aircraft fire that we have seen. So, it will take some time to conduct the research but we will get back to you with a specific time. We are moving forward though very aggressively on this point. [Mr. Dickson responded for the record:] Timeline for the Implementation of Section 332 of the 2018 Reauthorization ActLAs of March 6, 2020 the FAA has completed baseline fire testing with a military-spec (C6) aqueous film forming foam. LThe current project schedule has fire testing of five commercially available Fluorine Free Foams (FFF) using military-spec test protocol completed by the of June 2020. LConcurrently, the FFF's will be tested for a chemical make-up and properties by the end of June 2020. LFrom July 2020 until December 2020 the FAA plans to test non-commercially available foams for both fire tests and chemical tests. LConcurrently, we will perform ICAO level C fire testing of the five commercially available FFF's and any non- commercially available foams. LThe final research report is expected to be provided to the FAA Office of Airports by April 2021. Ms. Lawrence. Thank you and I yield back. Mr. Price. Thank you. Mr. Womack. Mr. Womack. Thank you, Mr. Chairman and thank you Administrator Dickson for your testimony here today and your service to the country. I don't know if Ms. Lawrence was referring to the section in the Reauthorization Act of 2018, section 625 on the $10 million that was authorized for primarily pilots and maintainers. This is an education process. But what are you doing to implement because it has been fully funded. What are you doing to implement that? Mr. Dickson. Yes, sir. $5 million each. As you noted, $5 million for pilots and $5 million for maintenance technicians. We are in the process of working through I believe those funds became available in December and we are working through the process right now. We expect to have the grant applications out there within the next few months. And it will, that will all take place this year to get those programs up and running. Mr. Womack. When Secretary Chao was here a couple of weeks ago, I asked her about contract towers. I am going to ask you basically the same question. Of course, I have got a parochial interest because I have got several contract towers in the State of Arkansas, certainly 4 of them are in my district. Can you comment briefly as to where you see this contract tower program going? Which I consider to be a pretty good partnership that the FAA has that helps to ensure safety. Mr. Dickson. Yes, Congressman, thank you for the question. Contract towers are an extremely important part of our aviation infrastructure, particularly when it comes to airports in smaller communities, making sure that we've got the appropriate margin of safety there. I believe we've have currently approximately 250 contract towers and we are requesting funding for those operations of $172 million. We do have a benefit cost analysis process that we have to go through to ensure that we are putting towers in the locations where there will be enough traffic so that there is as safety benefit. But we will, I see us continuing to support the contract tower program. Mr. Womack. I don't want to get too down into the weeds on the benefit cost analysis but when that happens, is that a snapshot of a like a certain period of time in a given day that may or may not reflect the ongoing need? Mr. Dickson. My understanding is the benefit cost analysis is, uses a 2018 baseline and there is a tenth of a point increase that was put into the authorizing legislation that allows us to essentially if it's a close call to put a particular airport over the bar. Mr. Womack. I see. I got a, in my remaining time, I got a couple of questions about the Max program, and you may have covered this in your opening and I got here a little bit late. As you look at our current aircraft certification system, do you see any changes on the horizon that would make to ensure a more sound safety regulatory system? Mr. Dickson. Well, the short answer is yes. Essentially we have a number of recommendations from various reviews that have been done, all of which have a slightly different perspective and those are all very helpful. They, it really comes down to addressing three particular issue and that is making the oversight process more holistic and more focused on system, the safety of the system as designed, rather than complying with individual rules which is you would hope that those rules would look that together, would provide the level of safety and they have over the years that we want. But I think we are in a world now where we really need to look at the interdependencies in a more sophisticated way that we have had to in the past. We also need to introduce human factors considerations into design. It has been a part of the design criteria before but that needs to be more integrated. And we also need to develop safety management systems which will actually allow us to oversee the manufacturing process much more effectively because it requires data and communication that doesn't necessarily exist in with the level of detail that it needs to now. Mr. Womack. Yeah. I am about to run out of time so I am going to let you take these for the record. And that is on this max reports that I have read that suggest that there may be a rewiring of the entire 737 max requirement, I would like to know a little bit more about that and what is driving the potential need to do that. But again, won't require you to go through that here today because I am out of time and take that for the record. And, Mr. Chairman, thank you for the time and I yield back. Mr. Price. Thank you. Ms. Torres. Mrs. Torres. Thank you, Mr. Chairman, and thank you, Mr. Dickson for being here. For the past 20 years, the FAA air traffic controllers and technicians have relied upon the integrated control and monitoring systems to monitor and control all critical electronic systems operating the 16 major airports in the U.S. Yet, despite pleas from members of Congress on both sides of the aisle, and from air traffic controllers to refresh the software of these systems, which is long overdue, the FAA has refused to act. I would like to point out that this committee in the fiscal year 2020 funding bill, included language highlighting this very issue as it would impact air traffic operations in the traveling public, it is my understanding at the FAA has still not acted to refresh the system. Could you please explain why this is the case and if, you know, what you plan, what the status report is? Mr. Dickson. Thank you for the question. The systems that you're referring to actually don't monitor all of the critical systems, they monitor specifically the navigational aids around the airport. Mrs. Torres. Which is critical. Mr. Dickson. Absolutely. And so we are, we continually along with all of our technology we will continually evaluate what the risk is of doing or not doing a tech refresh. And this is an area that we are currently evaluating and we will address moving forward. Mrs. Torres. The technology is ancient technology and it continues to age and the refreshment part of it is, you know, soon not going to be a reliable source for pilots to utilize or air traffic controllers to utilize. So, you know, I hope that you would see the urgency to this. It is also my understanding that FAA is in the process of evaluating the implementation of the National Aerospace System, NASS, program designed to enhance NAVID Vis Aids control and monitoring capabilities in air traffic control towers. And the FAA is considering either expanding the use of the integrated control and monitoring systems, a system designed and manufactured by a minority owned small business group from southern California, or upgrading and expanding the universal interlock control, a system that is designed and manufactured by the FAA in competition with a minority owned firm in southern California. Can you clarify for me whether or not the FAA has been in competition with any private company regarding the UIC NAV aid or VIS aids monitoring efforts? Mr. Dickson. Well, thank you for the question, ma'am. The UIC capability that you spoke about, my understanding is that was undertaken in 2009 at some airports that did not have the system that you're talking about. And it's even more narrowly focused. We will review our acquisition protocols to make sure that we comport with the acquisition guidelines in terms of the competition issues that you raised. Mrs. Torres. So as you respond to me, I hope that you would justify why this is taking place given that OMB guidelines are prohibiting that you are in direct competition with small minority businesses. Secondary, Administrator, as you know, Congress included in the last FAA bill a strong, clear, and legally binding mandate that the FAA require all new aircraft to have secondary barriers starting in October of 2019. This is a safety and security mandate that dates back to 9/ 11. And that Congress could not be any more clearer, a direct, you know, clear and direct about this. You are now past due and have full legal authority to implement this requirement today. Just as you did last October when you were supposed to issue this order but instead you have created a working group to study the issue further delaying this much needed safety enhancement. When do you intend to comply with the law? Mr. Dickson. Well, ma'am, we are moving forward on this issue. It is a very high priority for me. We are moving forward on this issue as quickly as we can. They converse on a regular basis. Mrs. Torres. How often does the study group meet? Quarterly, monthly, weekly, daily? Mr. Dickson. In person, I would have to get you the schedule. I know that we are expecting a report from them later this month and that will give us the technical details that we need to provide the manufacturing, the manufacturer's guidelines that we can actually enforce. And that's what has been missing. [Mr. Dickson responded for the record:] Flightdeck Secondary Barrier Working Group Schedule LSeptember 5, 2019: Working Group formed LOctober 3, 2019: Initial Teleconference of the Working Group LNovember 4, 2019: Sub-working Groups formed & Sub-working Group Leads/members notified LNovember 4-12, 2019: Sub-working Group activities lead by the sub-working group leads LNovember 13-14, 2019: First face-to-face meeting (Washington, DC) LNovember 29, 2019: Teleconference with FAA Office of Budget Costing LDecember 20, 2019: Report writing subgroups provide first draft LJanuary 21-23, 2020: Second face-to-face meeting to review draft report (Tysons, VA) LJanuary 31, 2020: All recommendations formalized LFebruary 20, 2020: Final report submitted for TAE comment LFebruary 25, 2020: TAE call for review draft of final report LFebruary 27, 2020: Final report with TAE comments incorporated submitted LMarch 19, 2020: Presented final report to ARAC Mrs. Torres. My time has expired, sir. But I hope that I am being very, very clear to you that these are critical safety measures for the flying public and that we expect you to follow the law. Mr. Dickson. I understand. Mrs. Torres. I yield back. Mr. Price. Ms. Clark. Ms. Clark. Thank you, Mr. Chairman, and thank you for joining us today. First, I want to also thank you for your support of the Aviation Sustainability Center known as ASCENT. It has brought researchers at Boston University, MIT, and others together to quantify the impacts of air quality in affected communities. We look forward to our ongoing partnership. I want to ask you also about in the fiscal year 2018 THUD report, this committee directed the FAA to report back on sound installation, installed prior to 2007. And examine the effective lifespan of mitigation treatments and make recommendations. This report was released last year and in addition, MASS port, the Massachusetts Port Authority sent a letter to you at the end of January regarding the retreatment of homes that were sound insulated during the early years of the sound proofing program. FAA's current policy does not allow for retreatment of homes. What is your plan for replacing the equipment that has lost its effectiveness? I know the FAA has acknowledge that current window and door treatment are far more effective and durable and are you open to revisiting this policy so homeowners can take advantage of those efficiencies? Mr. Dickson. Well, thank you for the question. And the short answer is yes. The standards for insulation were actually established in 1993, although there had been work--that type of reimbursement occurred prior to that. At this point, our research has not shown or indicated that there is any deterioration in those measures. But, because of the fact that there were no standards established prior 1993, we are looking very seriously at allowing AIP funds to be used. Now the airport that's requesting the funds would have to essentially prioritize that with other safety and efficiency projects that they have along with noise issues in the adjacent local communities. But it is something that we are looking at very closely and we will certainly be happy to work with you on that. Ms. Clark. So when you say you are looking at it very closely, does that mean you are changing the policy or you are still examining it? Mr. Dickson. We are in active discussions to change the policy. But to my knowledge, as of sitting here today, I can't tell you that it has changed but we are in active discussions to do that. Ms. Clark. Do you have any sort of timeline on a final decision? Mr. Dickson. I would have to get back to you the specifics but it is, it would be in the very short term. Ms. Clark. OK. We will look forward to a very short term answer because I think there are homeowners, not only in my district, but across the country that really need to be able to update the sound proofing that has been offered. Mr. Dickson. I understand. Ms. Clark. I would also like to talk about in light of the Boeing 737 crashes sometime on your human capital needs to ensure that there is an adequate level of oversight in both aircraft certification and flight standards, particularly for companies like Boeing that have organization designation authorization. Which basically means they are allowed to self inspect and regulate, is that right? Is that a fair characterization? Mr. Dickson. I would not use the term self-inspection or regulation. The FAA is required to oversee those processes and an ODA is a privilege. They have a very high level of responsibility in terms of producing safe products and that process has, that delegation process has produced safe products for many decades but as with any process as we have said, it can certainly be improved. And I think the FAA's ability to oversee the process currently has areas that need to be improved and that is what you're seeing in our budget request. Ms. Clark. And is that a part of the additional staffing is to help you in this area? Mr. Dickson. Yes, ma'am. Ms. Clark. OK. And could you continue to update us on the status of hiring the new technical employees and the type of capacities that these employees are going to fulfill? Mr. Dickson. Of course. In the current year, we are in the process of recruiting and hiring additional human factors experts. And also, software engineers, systems engineers, those who have the capability, technicians to or specialists to perform system integrated system safety assessments. All of those are areas that will improve the level of sophistication of the FAA's oversight. And in addition, on the fiscal year 2021 budget request, we are asking to add an additional 50 on top of the 34 that we will bring on this year and then an additional 13 for our ODA office that was stood up from the 2018 reauthorization. Ms. Clark. Thank you. Mr. Price. Mr. Hurd. Mr. Hurd. Thank you, Mr. Chairman. Administrator, it is good to have you here, you have had an interesting year. I know we talked a bit bit about COVID-19 already. Can you take 30 seconds and just describe FAA's role in dealing with COVID-19 and maybe larger scale crises like this? Mr. Dickson. Yes, Congressman. Thanks for the question. The FAA has been involved from the very beginning. Of course, we are a part of the Department of Transportation which is actually on the President's task force and we have been supporting, acting as really an honest broker between the Federal Government and all elements of the aviation industry, whether it's airlines or airports or crew members and passengers. And so we have been making sure that when we have been in a containment posture up to this point, that we are putting-- helping to put processes in place for passenger screening and contact tracing when that's warranted and essentially supporting the CDC's efforts. Within the FAA itself, we have, for the last 8 weeks or so we have essentially had three lines of effort. The first line of effort is our internal coordination. It's a process that we use for hurricanes and other contingencies that happen. That group has been stood up and operating continuously since about the middle of January. We have also been working as part of the interagency process which I just discussed. And then about three to four weeks ago, we began to pivot to attention to our own operations plans in terms of mission assurance because we need to be able to continue to take care of our own people and manage the air traffic control operations as well as enable our safety, aviation safety inspectors and technicians to be able to make sure the system continues to run. Mr. Hurd. Right now today, how do you characterize traveling by air? Mr. Dickson. I would say that as I mentioned in response to the chairman's question earlier, that the considerations that the CDC has put out in terms of those who are at risk or and should look at large gatherings or traveling on long flights. But other than that, there aren't any significant restrictions or considerations beyond what we would have in any work place or public gathering. Mr. Hurd. Sure. Got you. I represent San Antonio. I am one of the five that represent San Antonio. Lackland Air Force Base is there, HHS is involved in taking folks from the, excuse me, the Grand Princess cruise ship to Lackland Air Force Base. Would you agree hat in the interest of public safety, those chartered flights that HHS is doing, having them land directly on a military facility like Lackland would be the preferred route or the preferred practice? Mr. Dickson. I believe that's pretty much been the practice. The repatriation flights and these repositioning flights are actually either State aircraft or public aircraft operations under the State Department. And they have to comport with since they're flying in the civil aviation system, they have to comport with the FAA's regulations. But in terms of passenger facilitation and management, that's really is the responsibility of HHS, CDC and CBP. And my observations up to this point is they are managing that process appropriately to make sure that there is no elevated risk of any transmission. Mr. Hurd. Good copy. Switching to a new topic, unmanned aerial systems. The budget has $144 million in it for this program and $2 million for working with law enforcement partners on counter UAS and protection at these airports. Is that enough? Mr. Dickson. I would say it is a continuing, developing challenge for our aviation system. But I believe that our request for this coming fiscal year is enough to do the research that we need to do to continue to improve our capabilities in these areas. The FAA's primary emphasis here in working with our law enforcement partners and airports primarily, is to ensure that we deal with unauthorized, clueless, and careless, and then also anyone who wants to do harm that we actually have the rulemaking and the detection processes in place to be able to address those issues. That's where our focus is. Mr. Hurd. And in your--in my final 30 seconds, your opening remarks, you talked about how the, excuse me, the low altitude authorization and notification capability was a success story in automation and partnership with industry and government. Why? Mr. Dickson. That's a great question. I think what it has done is that it has provided the foundation for which we will be able to build an unmanned traffic management system with the private sector to be able to deconflict UAS from each other as we continue to integrate them in our system. Our strategy really is to integrate UAS in the coming years rather than segregate them to specific geographic areas or routes and LAANC is really the first capability where we are seeing the ability to be able to begin to manage what that process could look like in the coming years. Mr. Price. Mr. Quigley. Mr. Quigley. Thank you, Mr. Chairman. Thanks, sir, for being here. In 2015, OBM greenlighted a study, the DNL on my urging to reexamine day night level metric use to measure aircraft noise pollution. May 2018, the FAA said it is really close and since that time it has been delayed 22 months. We have heard from multiple sources that it was delayed because of methodology issues. Is that true? Is the study close? Were there issues with how it was conducted? Mr. Dickson. So thanks for the question. DNL currently as you know, is the only metric that we have that takes into account all of the criteria in terms of measuring the impact of noise on our communities. And we continue to do research on what other methodology-- methodologies would capture time and place and duration as well. And so far there hasn't been anything that has replicated that. If you're referring to the noise annoyance study which is, that is due out in October, and we expect to meet that deadline. Mr. Quigley. Were you aware of any problems with the methodology in the study? Mr. Dickson. I'm not personally aware. Mr. Quigley. Could you find out and let this committee know? Mr. Dickson. Absolutely. [Mr. Dickson responded for the record:] The FAA is confident in the rigor and methodology used to conduct this study and will publish the study consistent with section 187 of the FAA Reauthorization Act of 2019. Mr. Quigley. Ask them, I have problems with the word annoyance because as you know these public health studies are talking about far more than annoyance, they are talking about real public health risk. I certainly appreciate that. And I hope we are talking about the same study. Second, this past summer, the FAA worked with local authorities in New York to adjust flight patterns and procedures to help limit noise around JFK. But in a letter to the Congressional Quiet Skies Caucus, the Administrator Dickson, you stated that FAA's review process for these changes has been quote irregular and had serious flaws in it including not consulting with the JFK tower. Obviously those are big red flags and it is good that they were caught, but why is it that internal communication at the FAA let this happen? That the agency can agree to significant changes in flight operations and then go back on it, really on what it said it was going to do, when it realizes its own integral procedures were violated. Mr. Dickson. Well, it's a great question, thanks for the opportunity to respond. It's really important that when we look at noise issues, that we realize that it's an entire community issue and we want to make sure that the entire community is engaged and that we are not just moving noise arbitrarily between one community and an adjacent community for example. This inquiry was made to the approach control which did not consult with the tower. This is why it's really important, as I mentioned to Congressman Diaz-Balart, that we work through the regional administrator to make sure that we can bring these issues forward and have them addressed on a holistic basis, rather than just to solve one issue. I will say that the altitude request for operating above 3,000 feet on the arrivals, that actually was executed and was part of my response to the inquiry from the caucus---- Mr. Quigley. Sir, is it safe to say that the problems that took place here won't be replicated, that working in around O'Hare and other airports we are not going to have these same issues? Mr. Dickson. We will not as long as we are able to understand that the appropriate point for us to engage with you and your staffs is through the regional administrator, then we will be able to make sure that that process is appropriately managed. Mr. Quigley. Sir, my friend and colleague, Mr. Swayze is interested as his constituents are as to this correction has been made as to how it was moved forward. Now how long might they have to wait to find out what if any other corrective measures can be taken to adjust to the noise? Mr. Dickson. Well, as I said, the altitude portion has already been addressed. The runway usage again, that's something that we would have to work through the New York roundtable to make sure that we are not changing---- Mr. Quigley. Is that process going on? We can report back to the Congressman that it is being worked on soon? Mr. Dickson. Yes. Mr. Quigley. Thank you. Mr. Price. Mr. Administrator, I want to return to the safety lessons from the 737 max disasters, matters raised by Mr. Womack and Ms. Clark and others. I want to drill down a bit on 2 aspects of this and I'll ask both questions at once. First, has to do with the manufacturer's role in the ODA process. There is some of course, widespread misgivings about that process but having said that, the FAA does not have the capacity to inspect every aspect of every plane in U.S. aviation. So if ODA is necessary at some level, how can you improve it? That is the big question. How can the FAA ensure that the ODA employees are acting in the best interest of the FAA and not their employer. What could the FAA do to protect ODA employees from undue pressures? And then perhaps most importantly, what can you do to ensure that the same culture of safety that you aspire to at the FAA permeates this process? I know that is difficult, but that is important. Second, having to do with the human factors. The investigations into the FAA certification process have identified that the FAA made some incorrect assumptions about pilot responses and that the agency needs to integrate human factor analysis into the certification process more effectively. Of course, you have a myriad of circulars, orders, notices, related to human factors that date back to the 1990's. So what are we to conclude? That you haven't been successful in following your own guidance or that the guidance is unenforceable or that the guidance needs to be revised? I mean, can you update us on this? And then, and this particularly came out in the oversight hearing we held in this subcommittee some months ago. What about the variation of experiences of foreign pilots and mechanics? The international aspect of this. Are you modifying or do you need to modify that guidance when you consider the variants of international experiences? Mr. Dickson. Well, thank you, I'll try to address those in sequence. With respect to, I think the first issue, I would just put it under the broad topic of how do we manage and make sure that there is not undue pressure or conflict of interest in the, among the ODA members. And with any manufacturing process, any private company, even an airline, there are always going to be mission pressures, you know, a captain wanting to get the airplane to its destination on time. In this case getting a design project completed. There are going to be schedule pressures that the safety process need to be able to stay intact and be of primacy but also, the leadership, both at the FAA and at the manufacturer need to make sure that they continuously message and are listening for indications that that may not be the case. And for example, you know, when I was leading my pilots at the airline, I always told them, you know, sometimes you're your own worst enemy. You know, you really want to get your customers to their destination, but don't ever hesitate if you've got any concern at all to pull off to the side of the taxiway, let's set the parking brake and get everything sorted out. That's always going to trump being on time and being efficient if you need to. The same is true in the manufacturing sector. And there are some structural things that some companies have done that I think are best practices in terms of separating the safety chain from the manufacturing chain to make sure that quality and safety is emphasized throughout the process. We also need to recognize there is a lot of flexibility in the ODA system where it really is a privilege for a company to have ODA as a program. And I think it is a more effective way for the FAA to manage a manufacturing process, rather than trying to manage individual designees but the process has to be robust, and it has to have safety as its primary consideration. And I think some of the resources that we are asking for in terms of system safety analysis and effective oversight tools, I have a big emphasis at the agency on data and the ability to be able to look at the data as the project is proceeding for the FAA is going to be extremely important in this process. Mr. Price. Thank you. I am going to ask you to defer the answer on the human factors. I do want to hear that, defer that though until the next round since my time has expired. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you Mr. Chairman. In the same vein, Administrator, I would like to first thank you for putting the safety first as to the review of the max. We know that you won't certify this aircraft until you are certain that it is safe. I guess I read or heard that you personally are going to fly the airplane before it is certified. Is that correct? Mr. Dickson. That's correct. Mr. Diaz-Balart. So all indications that I hear are that you are making good progress on the review and that obviously we look forward to the day that that airplane can safely return to our airspace. Would you give us a sense how thorough your review has been and what steps still remain before the plane can be recertified? Mr. Dickson. I would say that that is the most thorough review that any airplane has ever had throughout the history of aviation. And that we are leaving no stone unturned and we have, we have essentially reallocated resources within the agency to make sure that we have the resources to continue to make sure that every step of the process is followed. The next major milestone is the certification flight and we have, there were a number of--several software changes that were recently made to address some issues that had come up and it remains to be seen whether we have to reaccomplish the audit associated with those changes. But after that work is completed then we will, that will lead us to the certification flight. It's impossible to say exactly when that will occur but when it does, we will then take some time, a matter of a few days I think to review the data from the certification flight and then that will enable us to bring in the 16 airline pilots, both U.S. and international pilots of various experience levels to complete the training that Boeing has recommended which includes simulator modules as well. My deputy administrator is going to complete that training alongside that process and then once this process is completed I will complete the training and then conduct a certification flight. In parallel with those training requirements, there are some technical steps that have to be taken to make sure the airplanes have all the upgrades and maintenance work completed on them. And then there will be an airworthiness directive and the ungrounding order after that. Subsequent to the ungrounding, then we will--also the certificate management offices in the U.S. will then work with their individual airlines that they oversee to approve their specific training programs for their operations. Mr. Diaz-Balart. All right. There have been several studies and investigations of the certification of the max, of the process both from inside and outside of the FAA. Can you just talk about some of the findings in those reviews, particularly those findings that may be critical to the FAA's role. Mr. Dickson. That's a great question. We have had the Joint Authorities's Technical Review, we have had the Technical Advisory Board which we are specifically paying attention to with respect to the Max itself. The Secretary's Special Committee on Aircraft Certification. The National Transportation Safety Board recommendations. We have the accident investigations from the two accidents and we also have Congressional investigations as well. All of those have resulted and will result in a number of recommendations but they're generally falling along the themes that I mentioned earlier, the three themes that I mentioned in my opening statement. Having said that, we don't want to lose the granularity of the individual recommendations so we are mapping them together. They intend to--in many cases get at the same issues, utilizing slightly different wording or maybe a little different emphasis. And remember, we are talking about a process that isn't specific to Boeing, we are talking about 79 ODA's around the country that we need to have a process that we will be able support. And so the funding that we are asking for in terms of the improvements to aviation safety and safety systems, will enable us to move along the path towards meeting those recommendations. Mr. Diaz-Balart. Thank you. Thank you, Mr. Chairman. Ms. Clark. I switched up on you. Thank you so much. Just briefly, when I was a law student I got to take part in a case against Morton-Thiokol, looking at how the O rings had been developed in the shuttle disaster, a preventable disaster. And it really was pressure to meet contract, to raise the bottom line that did it. With the coronavirus, the airline industry, airline manufacturers are going to be under increasing stress. And I just want to implore you as the FAA I know that you are committed to this, but you are what stands between protecting passengers, their families, the networks that love them and support them and a race for a bottom line that can cause disaster in the air. So we appreciate what you are doing and just feel that role of protecting safety is always foremost for the FAA, but it is going to be challenged in new ways. I want to go back to a specifically a question that the chairman asked about the investigations into the certification process where the FAA made incorrect assumptions about pilot responses and needing to integrate the human factor analysis into the aircraft certification process. The FAA has a myriad of circulars, orders, and notices relating to human factors analysis dating back to the 1990s. Is the FAA not following its own guidance or is the guidance unenforceable? Mr. Dickson. Well, thank you for the question. First of all, with respect to the, your first point, that's absolutely our focus to make sure that we have the highest margin of safety in the system and the--we have processes for--in place of increased surveillance on areas where--that we think might be under stress if that proves to be necessary financially. With respect to we have a number of advisory circulars and guidance material that some of it dates to the 90's but there have been more recent with respect to flight deck architecture considerations that have been developed and we use. Some of the assumptions about human performance are not only what we use in the U.S. but they are what other authorities, other states have designed have used and they are essentially globally accepted criteria. And, I think, one of the benefits that we have and I think it has been a strength of the United States going through this process is our openness and transparency and our willingness to accept critique throughout this process. It will make the process stronger. And I would expect that working with the other states of design, primarily the Europeans, the Canadians and the Brazilians, our coordination, our cooperation is really stronger than ever. And we will be looking at all of these elements in terms of human factors and things like the Change of Product Rule and what those improvements will look like going forward. Ms. Clark. Do you anticipate you will be modifying your guidance to consider the variance of experience of foreign pilots? Mr. Dickson. Well, I think you can see that we are already taking actions. We are not waiting to rewrite guidance. The fact that we are including, I mentioned the joint operations review that is going to evaluate the training proposal from Boeing. This is the first time that any authority has used line, airline pilots from various international countries. We have used pilots from other aviation authorities but never pilots from various experience levels to complete a process to validate a training proposal. Ms. Clark. Great, thank you. On that note, with the sort of global aviation using foreign pilots, do you think the ICAO is still an effective body for globalizing aviation standards? Mr. Dickson. Well, there is no organization in the world that has done more to promote aviation safety than the FAA. And one of the ways we do that, but not the only way, is through ICAO. The ICAO process can take some time, as you noted, but we have to be there because that is how we can exercise influence globally. The FAA devotes a number of people and quite a bit of attention to what is going on at ICAO. But in addition to that, we work bilaterally with many authorities. We also work regionally in areas where it makes sense. Most recently, I was out at the Singapore air show, for example, and worked with five of the aviation authorities in South Asia on exactly the issues that you are talking about with respect to pilot training and qualification. So, we will continue to take a multifaceted approach. Ms. Clark. Thank you. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you, Madam Chairwoman. Actually, on that note, how do we--how do I say this kindly? I want to be diplomatic about this. But look, other certifying international agencies have, may have potentially, and I am thinking about China, for example, you know, may not be as transparent as the FAA as to what their--how do you make sure that political reasons, because they may have ties with manufacturers or whatever are not--don't come between the certification of the MACs? Not for safety reasons but because of other reasons. So, I am trying to be diplomatic but I think you know what I am saying here. Mr. Dickson. Sure. Well obviously, the you know, again, these airplanes will be operated around the world as are many U.S. produced products. And so, that is why it is very important that I think the FAA takes a leadership role as the most influential in really many would say the gold standard for aviation safety in the world. That may look a little different now than it might have 20 or 25 years ago because there are other competent authorities out there that we can work with and that have very sophisticated capabilities themselves. So, that is an answer to Congresswoman Clark's question, it really is a situation where yes, we work through ICAO but we also work in a different way depending on what the aviation authorities are. Whether it is China or EASA or Singapore, whoever it is. That engagement and that level of assistance and mentoring may look a little bit different. Mr. Diaz-Balart. Let me change subjects entirely. In December, I joined my two Florida Senators raising concern with, at Miami International Airport. I don't know if you are aware of this, regarding the potential purchase of the passenger boarding bridges from a Chinese state backed enterprise. Now, this subcommittee started through, I think it was actually Congresswoman Granger who started showing concern about, for example, Chinese involvement in rolling stock, Chinese state enterprise in rolling stock. And the NDAA, that was actually, there was a halt put to that in a bipartisan way on that, on rolling stock. So, I have been concerned with the anti-competitive nature of bids from these stated controlled, state run or tied with state enterprises in China dealing with, again, these, I don't know what you call these things. The, you know, the, I guess the boarding bridges, passenger boarding bridges. And so, the concern is not only the anti-competitive nature but the fact that it could potentially pose a security threat. Because these companies then could be used to potentially exploit our aviation and national security network. So again, it is also a national Security issue. I just, I just want to make sure you are familiar with that and a lot of those funds are not federal funds, I get that. But I just want, Mr. Administrator, I just wanted to kind of put it on your front burner to make sure that the FAA does whatever we can, it can so that Federal funds are not used to support these Chinese backed companies which is, again, I think anti- competitive but also a national security issue. So, I am not asking for an answer but I just wanted to make sure that you are aware of that and that I can't speak for anybody else but there was very strong bipartisan concern about rolling stock. I think this is even more dangerous. So, I just want to put it on your radar. Mr. Dickson. Understand and there are Buy American requirements for AIP funds which would certainly be looked at if Federal money was used for these systems. And also, with respect to cyber-security in particular, that is something that we are focused on. We work very closely with Homeland Security and DoD as part of the aviation cyber initiative. We are also requesting an additional $13 million to make our own systems more robust and also ensure that the aviation system is appropriately protected. Mr. Diaz-Balart. And I appreciate that. I just want to make sure, Administrator, that the passenger boarding bridges doesn't, bad pun, fly under the radar. But with that, that is all I have. Thank you, Madam Chairwoman. Ms. Clark. Thank you. I have to remember to hit that button. But we do truly thank you for your time today. And the Committee staff will be in contact with your staff regarding any questions for the record. If you would please return the information for the record to the Committee within 30 days from next Wednesday, we will be able to publish the transcript of today's hearings. With that, Mr. Diaz-Balart, any final comments? Mr. Diaz-Balart. No, thank you. Ms. Clark. With that, the hearing is adjourned. 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