▶ 0:24:12>> the hearing will come to order. Thank you to our nominees, Mr. mody , Mr. goettman Dr. callahan , Mr. bell.
▶ 0:24:27We will first hear from arjun mody , who is to be the deputy commissioner of social security who administers programs necessary to accomplish the ssa mission including directing the development of aged policies and procedures as well as the supervision of agency financial management systems. Mr. modi has over 20 years experience in the public sector, most recently as senior senate staffer for our colleague senator barrasso.
▶ 0:24:59I'm confident his extensive background in government service will allow him to maneuver effectively at the social security administration and exist the admitted -- Mr. -- exist. We will hear from jeff goettman , who is nominated to be deputy states trade environment for africa, western hemisphere, europe, middle east, environment, labor and industry competitiveness.
▶ 0:25:28Confirm, you have an array of complex matters in his portfolio. He is well qualified to manage these issues. For example, while serving as the executive vice president and and chief operating officer of the export-import bank, he assisted small businesses in exporting capital goods and allowing businesses to stay competitive in the global stage. This experience will serve him well at the U.S.
▶ 0:25:53Dr where he will be responsible for ensuring american interests are protected abroad. Will also hear from Dr. julie callahan who is nominated to serve as the chief have cultural negotiator. She has a long history of public service along ustr, the food and drug administration and the department of agriculture. As the assistant U.S. dr for agricultural affairs and commodity policies and the Dr.
▶ 0:26:23Callahan has worked tirelessly to promote the interests of U.S. farmers, ranchers and food manufacturers. Her nomination has been supported by more than 80 associations representing these groups. I look forward to working with her is confirmed to ensure the interests of U.S. agriculture are protected in international negotiations. Finally, you will hear from Mr.
▶ 0:26:48Bell who is nominated to the inspector general by the department of health and human services. The office is to prevent and detect fraud, waste, and abuse and to promote the economy, efficiency and effectiveness of hhs programs and operations. Hhs is responsible for administering some of our most significant and wide-ranging programs, such as medicare and medicaid. Mr.
▶ 0:27:15Bell will need to serve as a principled overseer of these programs, ensuring that american taxpayer dollars are used effectively. His long career at oversight and investigations at the department of justice and in the house of representatives among other federal and state agencies will serve him well in this position if confirmed. Before closing I will respond to allegations from my democratic colleagues that this position is not legally vacant due to president trump's termination of previous inspector general's.
▶ 0:27:48The senate armed services, small business and veterans affairs committee, to name just a few have all considered and advanced inspector general nominee positions that were also vacant. Inspector general served at the discretion of the president and this position is vacant. Mr. bell has successfully met the finance committee's rigorous vetting standards and now deserves to likewise be considered by this committee. Thank you again to our nominees for their time today.
▶ 0:28:18With that I recognize ranking member whi member wh-- wyden. Mr. mody, it is important --
▶ 0:28:29Sen. Wyden: This is coming against the background of a health care calamity that is about to hit so many american families like a wrecking ball. One of the couples that are just going to get clobbered by what is ahead are bart and carla from eugene.
▶ 0:28:54Sen. Wyden: Eugene, oregon, and they will fall between the cracks and in such a hurtful way where they are going to pay 500% more for the same health insurance they had this year, 500%, folks. That is what we are talking about. We are going to have a hearing on some nominees.
▶ 0:29:22Sen. Wyden: The reality is, we have tried to negotiate with republicans to prevent huge price hikes and insurance premiums for months. At every step of the way, even before the shutdown, the door has been slammed shut by my republican colleagues. In two days, millions of americans are going to start trying to renew their health insurance.
▶ 0:29:51Sen. Wyden: Because of efforts by donald trump and for-profit insurance companies to actually conceal the premium increases, most american families are in the dark about how expensive their health care is going to get. Wait until you hear and see the sticker shock.
▶ 0:30:12Sen. Wyden: One of our the republicans talking about, bailing out a foreign country while families go hungry and the secretary of treasury who is close to a billion or talks about being a soybean farmer. The republicans are not talking about keeping costs down to the finance committee could be working today to keep health care affordable to make sure people don't lose their coverage.
▶ 0:30:37Sen. Wyden: Instead, it has been quiet here you can practically see tumbleweeds rolling across the floor of the house of representatives. Mike johnson has given everybody a six week vacation. Might as well be tumbleweeds rolling across the floor here of this hearing room. What we ought to be doing is talking about the consequences and the premium increases the family are going to face and what is going to be done about them.
▶ 0:31:06Sen. Wyden: In 10 months, the senate finance committee has failed to hold a single hearing on health care. It has been a 400 days since the last meeting on major and real health policy challenges with eight health care affordability crisis for millions of americans days away, that is a textbook case of failure to fulfill your constitutional duty to find
▶ 0:31:37Sen. Wyden: Solutions for families. On our side, who made it clear that we are more than ready to negotiate with republicans to keep costs down and reopen the government. In fact, I have been giving examples of how this committee can do it if there is a political will, such as the situation with pharmacy benefit managers. I think it is unfortunate that when we want to go after solutions to the skyrocketing family health costs, republicans just aren't available.
▶ 0:32:06Sen. Wyden: Turning to the subject of today's hearing, we will start with Mr. belt nominated serve as inspector general of the hhs. Donald trump has done more than any american president in history to undermine inspector general hospice tasks with rooting out fraud. He fired two dozen inspectors general across the government, including at hhs.
▶ 0:32:28Sen. Wyden: He replaced them with a whole wave of partisan republican operatives who stand ready to sabotage the independence of oversight inspectors general and what they are supposed to do. So my own view is, Mr. belt shouldn't meet with us this morning. My view is the job he seeks from the american people isn't vacant.
▶ 0:32:55Sen. Wyden: Putting that aside, the record shows, the public record that he is a dangerous nominee. The record shows he spent his career running smear campaigns and heading up a witchhunt against planned parenthood under special house committee. He is leading a partisan investigation to undermine donald trump's political opponents. Inspector general's office at the health and human services department is the largest such office in the government.
▶ 0:33:28Sen. Wyden: And for a solid reason. There is a lot of work to be done to go after the fraudsters who are stealing taxpayer dollars or hurting families. Mr. bell in the past has used his position. This is the public record it to target opponents of the republican party instead of using the power he had to root out legitimate health care fraud and abuse.
▶ 0:33:52Sen. Wyden: Americans ought to be able to know that their independent watchdogs are going to call balls and strikes without political interference. If confirmed, it is my view that Mr. belt will challenge that faith to the core. Next is Mr. arjun mody, to be the deborah terry -- deputy commissioner of social security.
▶ 0:34:25Sen. Wyden: This comes after a new director at the irs. The tax filing kicks in and the director will be a busy man which means that Mr. mody will be the de facto head of social security. I am concerned about the state of affairs there because Mr. mody does not have direct expense working on social security policy. And as far as I can tell, he has not manage more than a couple dozen people.
▶ 0:34:56Sen. Wyden: Social security continues to face a customer service crisis and americans deserve social security led by somebody who knows how to write the ship. In yesterday's washington post, one of my constituents from oregon share how after waiting on hold for more than two hours to speak with someone from social security, he received the cruelly named polite disconnect in which was hung up on by the office was no longer open.
▶ 0:35:23Sen. Wyden: He was recently diagnosed with throat cancer and just wanted information about survivor benefits for his family. It took three more victims of our long wait times for him to get in touch with someone in social security. So put me down is skeptical that Mr. mody has the experience to lead the agency in the absence and to address the customer-service crisis.
▶ 0:35:49Sen. Wyden: Let me conclude by discussing the two trade nominees, important positions, julie hallett -- callahan to be chief agricultural negotiator and Mr. goettman to be the deputy. Farmers and small businesses are struggling to stay afloat as he flip-flops on tariffs.
▶ 0:36:14Sen. Wyden: President everything family buy from groceries to cars to electronics just keep going up and up. Workers are wondering if they are going to have a job one month to the next. What is needed now more than ever is a consistent, understandable trade agenda that will put american workers, businesses and farmers first. Instead, what we have is a trade agenda that seems driven by donald trump's personal grievances.
▶ 0:36:42Sen. Wyden: I will be waiting to hear from these nominees exactly how they plan to restore stability to the economy and bring down costs for business. My final point is this, this is not business as usual. They are advancing in voting to confirm 100 unqualified individuals in one fell swoop. The government is shut down.
▶ 0:37:08Sen. Wyden: Donald trump is using it as another opportunity to stop all over the U.S. constitution if he is taxpayer dollars as a personal piggy bank. I cannot support more nominees that have been handpicked to help donald trump do just that.
▶ 0:37:26Chair Crapo: Before returns are. I do need to respond. I am sorry to the witnesses and to others here that this hearing has become a forum for the batter we are having over the government shutdown right now. As of tuesday night, we voted 13 times to open the government and it is not the republicans who are refusing to open the government.
▶ 0:37:52Chair Crapo: It is the democrats and they are refusing because we will not agree to their demand that health care policy. We agreed to the trillion dollar plus spending package that will simply throw money at the issue rather than actually negotiating over real solutions that are needed to fix the coming crisis that we see. Yes, premiums are going to go up dramatically.
▶ 0:38:17Chair Crapo: No, the reason they are going up is not because of the temporary covid premium support that is about only 4% of the coming increase in premiums. We stand ready and the democrats know that we stand ready to negotiate on meaningful health care reform. My colleague references legislation, which he and I cosponsored when he was chairman last session.
▶ 0:38:46Chair Crapo: It is legislation I want to move but we cannot move it as long as we are in this government shutdown stalemate and there are no negotiations allowed. We stand ready to negotiate when the government is open. And I wish we didn't have to have these kinds of debates in front of these kinds of hearings, that is apparently where we are today. In a moment, our nominees will share their opening statements.
▶ 0:39:11Chair Crapo: Before doing so finance committee. First, is there anything that you are aware of in your background and I will answer you -- ask you to give me a yes or no. Is there anything in your background that you are aware of that might present a conflict of interest with the duties of the office to which you have been nominated? Mr. mody, -- Mr. mody: no.
▶ 0:39:41Mr. Goettman: No.
▶ 0:39:43Dr. Callahan: No.
▶ 0:39:45Mr. Bell: No.
▶ 0:39:47Chair Crapo: Do you know anything that will cause you to be not in the seat your nominated?
▶ 0:39:57Mr. Mody: No Mr. goettman: no
▶ 0:40:02Dr. Callahan: No Mr. bell: no.
▶ 0:40:08Chair Crapo: Do you commit to providing a prompt response in writing to any questions addressed to you by any senator of this committee?
▶ 0:40:16Mr. Mody: Yes Mr. goettman: yes.
▶ 0:40:20Dr. Callahan: Yes.
▶ 0:40:22Mr. Bell: Yes.
▶ 0:40:24Chair Crapo: I will turn it over to senator barrasso for the introduction.
▶ 0:40:31Sen. Barrasso: Before introducing my friend, arjun mody coming during the chairman and the ranking member talking about obamacare and I would turn to the headlight in the new york times, the democrat run new york times was obamacare is pricey. The question is, who is paying? The taxpayers have been and by propping up obamacare for years. It has never brought down prices.
▶ 0:40:59Sen. Barrasso: It has failed completely and hear a story that somebody's premiums are going up 500%, the biden bonus payments that are expiring because the democrats chose the date for the expiration. That is about 4% of what is described so the 496% that I heard the ranking member tillis think about is a direct result of the failure of the obama care a lot that has been voted on by not a single republican. That is what we are dealing with, Mr. chairman. I appreciate your comments.
▶ 0:41:29Sen. Barrasso: But I'm here today to introduce and thank my friend for taking on the responsibility. It is a privilege to introduce an extraordinary leader interested end, arjun mody. He is joined by his wife was an er physician so she knows a lot about health care his daughter and also his daughter and thank you for being here and I'm glad you are here to support your dad.
▶ 0:41:56Sen. Barrasso: He has been nominated to serve as the deputy commissioner of the social security administration. In choosing him, president trump has chosen the very best. I've known him for 15 years. He is a leader who shaped work here and the senate and has run three of my senate leadership offices and in each one he didn't just manage to him, he transformed how we serve the members of this body and has done a magnificent job.
▶ 0:42:21Sen. Barrasso: He honed his skills working for elizabeth dole of north carolina and senator k bailey hutchinson of texas people you hire staff you need people you can trust and I trust arjun. He has earned trust in moments big and small. When something needs to get done, he gets it done and does it with excellence. He doesn't just know policy and process, he knows and understands people and listens to people.
▶ 0:42:48Sen. Barrasso: He doesn't build high-impact teams, he builds loyalty among the teams. He doesn't just work hard, he works well with everyone. When the stakes are the highest, he delivers the results. I watched him take on the toughest challenges and find solutions other people have missed. He has come away and it works. That is what social security needs right now. Weird story about someone calling and waiting on hold and not having their phone answered and going to disconnect.
▶ 0:43:18Sen. Barrasso: Arjun knows how to solve problems. For 90 years, americans have relied on social security, not just for income but for the independence they have earned for the account on the social security check to keep the roof over their heads and put food on the table. It is a promise the american people deserve to be capped and a promise that matters and needs leaders to understand the importance and the challenges of this.
▶ 0:43:43Sen. Barrasso: Arjun is going to modernize the social security administration and strengthen the core mission and be sure that payments are timely, accurate and secure. At the same time, he is going to work with this committee and across the government. He is going to collaborate with people, communicate to people and most importantly he will never forget that behind every case number is actually a person. Every beneficiary matters whether they are a senior, survivor or summon with disabilities.
▶ 0:44:13Sen. Barrasso: Social security works because americans can trust it. Month after month, year after year, and with arjun, that trust is in capable hands. I trusted him to leave my staff for the president has trusted him to strengthen social security and I urge my colleagues on this committee on both sides of the aisle to trust him with their support. Thank you, Mr. chairman.
▶ 0:44:33Chair Crapo: I will not get a brief introduction of the other three witnesses. Mr. goettman previously served under glenn youngkin from 2021-2024. He was a counselor in the office of domestic finance at the treasury department from 2019 to 2020. Mr. goettman, Mr.
▶ 0:44:57Chair Crapo: Goettman also served as the chief operating officer of the import, export bank and before serving in government, he was a private equity investor for over 20 years. Dr. callahan currently serves as the assistant U.S. dr for agriculture affairs and commodity policy. She previously served as a deputy assistant ustr and senior director in the ustr agricultural office. Dr. callahan has also held leadership positions in the U.S.
▶ 0:45:26Chair Crapo: Food and drug and in and in the U.S. department of agriculture, foreign agriculture service. Mr. bell serves as general counsel at the house committee on administration. He has previously held rules in the virginia state government and was chief of staff for the hhs office of civil rights from 2017 through 2021 during the first trump administration. Mr.
▶ 0:45:50Chair Crapo: Bell has also held several other roles in the house of representatives and was a senior helpful at the toronto justice. I want to thank each of our nominees -- senior at the trumpet of justice. I want to think these are nominees.
▶ 0:46:13Mr. Mody: It is my honor to be nominated to be the director of social security. Preserve and protect the promise for every eligible american. I will take the clear commitment of the president to social security and go to work for every american.
▶ 0:46:33Mr. Mody: From the moment the child receives a social security card to the moment a family receives a death benefit, americans will have an agency that works for them. The social security number is one of the most widely used forms of identification in our country. Social security benefits are the foundation of many americans' retirement planning. In all, social security tangibly serves every american.
▶ 0:47:00Mr. Mody: It has as a must deliver premier service and maintain pristine controls. I have been fortunate to learn from the giants of the senate, dole, hutchinson and barrasso. I am humbled by your introduction. I am supported by my faith in family. They are here with me today. Allow me to briefly share why public service is important to me.
▶ 0:47:28Mr. Mody: My father immigrated to the united states during the nixon administration. He arrived at jfk airport with dollars in his pocket. He worked days at chemical sites, rode the subway to brooklyn to earn a masters degree and suck at night in the hallway of a group apartment. For the last 25 years of his career, he proudly served our nation's veterans at a veterans affairs medical center in east orange new jersey.
▶ 0:47:53Mr. Mody: For him I learned that public service is a noble calling and in his retirement as he receives his government pension and social security check, he would often say to meet, god bless america. I see the work of the social security administration as to inseparable imperatives, service and control. On a service, deliver the best possible experience for every american with her at a field of his come over a phone with a representative or online through my ssa.
▶ 0:48:24Mr. Mody: We must equip our workforce with the leadership, the systems and processes to excel in every channel of service. On control, be timely and accurate in payments, drive down error rates, constantly monitor outlays, understand the actuarial analysis, get backlogs cleared and update rules could wound must safeguard the data systems to protect personal information and ensure the public's trust.
▶ 0:48:53Mr. Mody: This is an immense operational and financial challenge for the 50,000 person workforce come over 1200 field offices and a 1.5 trillion dollars annual spend, the largest in the government. It demands leadership, operational excellence and pragmatic problem-solving. If confirmed, I will take on this challenge in partnership with the commissioner. Together, we will make social security great and it will be historic. Thank you.
▶ 0:49:19Chair Crapo: Thank you.
▶ 0:49:27Mr. Goettman: Members of the committee, I am honored to appear before you as president trump's nominee for deputy united states trade representative for africa, europe, the middle east, western hemisphere, environment, labor, and industrial competitiveness. I am grateful to president trump for the opportunity to serve the american people.
▶ 0:49:54Mr. Goettman: I've also appreciated the many meetings with members and staff of this committee in recent months. I work forward to working with you if I am confirmed. I would like to express thanks to my parents, sisters and family.
▶ 0:50:11Mr. Goettman: I am forever grateful for the love and support of my wife and in our sons fritz and jay, and our daughter and her husband in our granddaughter will have a sibling.
▶ 0:50:30Mr. Goettman: I will mention the mentorship and friendship of governor glenn youngkin who trusted me to serve as his chief of staff and ambassador bob leite heiser who supported my appointment as the chief operating officer and adp of the export, import bank during president trump's first term.
▶ 0:50:54Mr. Goettman: Finally ambassador jamieson greer for his leadership in forging the america first trade policy, his unparalleled knowledge of international trade and his unwavering commitment to take action. His talents are mirrored by others and I am excited to continue my work with this team.
▶ 0:51:24Mr. Goettman: I would like to talk about what has impacted my trade policy. I grew up attending public schools in springfield ohio, one of 34 springfield's in the united states. It was a thriving community supported by thousands of manufacturing jobs and long-standing and iconic companies.
▶ 0:51:46Mr. Goettman: During that time, springfield supported eight elementary, five middle and two high schools as well as to hospitalists and three municipal golf courses where I'd competed into a collegiate offer and competed. It was a great place to go up.
▶ 0:52:04Mr. Goettman: Turn the clock forward, springfield has lost over 90% of those manufacturing jobs and the impact, the city contracted from 82,000 to 58,000 residents as both direct and indirect manufacturing jobs left the area.
▶ 0:52:28Mr. Goettman: The city closed three elementary come into middle and one high school and consolidated the two hospitals into a single location . There are no you mystically funded golf courses today. The hollowing out of this once vibrant manufacturing community is unromantic of hundreds of towns across america that have suffered from the deindustrialization that began with nafta and was accelerated
▶ 0:53:00Mr. Goettman: With china's entry into the wto. If confirmed, I work with you to support the re-industrialization and the revitalization of the many springfield's across our country. My background also includes many first-hand experiences working with U.S. manufacturing companies who face the very problems this administration is seeking to address.
▶ 0:53:26Mr. Goettman: Burdensome regulations, economic incentives to offshore and asymmetric access of foreign manufactured goods into the united states. And of the export, import bank, I had a front row seat witnessing the erosion of the global share from america in infrastructure projects due to the aggressive policies in fierce competition of other nations.
▶ 0:53:51Mr. Goettman: I watched as china executed the belt and wrote initiatives to expand and strengthen the commercial and political influence in africa and strategic regions around the grove -- grow -- below and flooding the markets with subsidized overcapacity. The actions have eliminated competition and manufacturing capacity and crucial supply chains in the united states and other western nations.
▶ 0:54:18Mr. Goettman: I am grateful for president trump's leadership and encouragement in addressing and reversing the trade policies that facilitated america's industrial decline and his determination in restoring economic and national security for the united states. If confirmed, I pledge to assist american companies competing globally by opening markets, eliminating unfair foreign trading practices and leveling the competitive playing field.
▶ 0:54:45Mr. Goettman: I will also work to advance critical manufacturing sectors and supply chains in the united states to increase job opportunities with good wages for the many springfield across america. Thank you for holding this hearing and considering my nomination. I look forward to our nominations.
▶ 0:55:13Dr. Callahan: Chairman, ranking member and distinguished members of the senate finance committee. It is a great honor to appear before you today. I am grateful and honored to have been recommended by ambassador greer and nominated by president trump to serve as the united states trade representatives chief agricultural negotiator.
▶ 0:55:42Dr. Callahan: I would like to think my husband scott and our kids, vanessa, maria and nathaniel and my extended family who are a constant source of inspiration, strength and support and I would not be here where I am today without them read I was able to hone my diplomacy and negotiating skills and an early age as the youngest of five girls growing up in a house with one full bathroom.
▶ 0:56:10Dr. Callahan: I also learned the importance of hard work, discipline and self-sufficiency from my paternal grandmother who was widowed at an early age and worked full time raising children at a time when single parenthood was not common and my maternal grandfather who was one of 10 and supported his mother and siblings to become a plumber's apprentice in his early teens when the kids today it would just be starting high
▶ 0:56:40Dr. Callahan: School. I would also like to think the incredible mentors and role models I have had over my nearly 20 years as a civil servant. To the american advancer for science, the organization that brought me to D.C. on a science diplomacy fellowship, my first entry into the executive branch.
▶ 0:57:05Dr. Callahan: As well as to the members and staff I have met with over the past several weeks in preparation of this hearing and I have met with over here in my role as the assistant U.S. tr for aquaculture. If confirmed, I look forward to working with you on the train issues facing farmers and ranchers across our great tree.
▶ 0:57:31Dr. Callahan: The experiences that have shaped my career in the agricultural trade negotiations I have participated in two decades cap deeply affected my worldview. When I looked at a map of the world, a scene tariff and nontariff barriers as well as opportunities.
▶ 0:57:51Dr. Callahan: American agriculture is second to none in terms of quality, safety and efficiency advance genetics and livestock production practices of the commitment to sustainable practices that allow for increased yields and fewer inputs, bio technologies that allow for no till practices and innovative products to meet consumer demand. But that said, american agriculture is under great stress.
▶ 0:58:22Dr. Callahan: Farmers and ranchers rely on export markets to break even and often find themselves on the receiving end of retaliation and unfair trade practices that threaten their very existence. Frankly, many trading partners don't treat the united states as well as we treat them and moreover, many treat our competitors better than they treat us.
▶ 0:58:49Dr. Callahan: I can't tell you the number of times the trading partners have told me that agriculture is too sensitive to include in negotiations. For example, they say we can't open our market to you -- t left derry because it is so sensitive. Meanwhile, they are importing billions of dollars of eu dairy products. That is just not right.
▶ 0:59:15Dr. Callahan: The america's first trade policy of president trump offers a path to reset our trade relationships in a holistic manner and reestablish a level playing field for american farmers. I understand that despite the president's success in lowering inflation, unleashing american energy and unlocking new market access, farmers continue to struggle.
▶ 0:59:44Dr. Callahan: It china is using agriculture as a weapon and american farmers and ranchers are feeling the pain. If confirmed, I will work with the committee, others in congress, those in the administration and all interested parties to move quickly to implement the america's first trade policy that promotes fair and reciprocal trade, that the benefits accrue to all sizes and
▶ 1:00:14Dr. Callahan: Sectors of the agricultural economy. If confirmed, I will work tirelessly to break down barriers and open market access for your constituents and american farmers, ranchers, fissures and food manufacturers across the united states. The -- thank you.
▶ 1:00:36Chair Crapo: Thank you. Mr. bell.
▶ 1:00:42Mr. Bell: Here before you as president trump's nominee for inspector general of the department of health and human services. I think the president and the secretary for their support. Also great thanks to my wife, a model of patience, kindness and good advice who is here today.
▶ 1:01:07Mr. Bell: I firmly believe with each passing day the president and secretary's leadership is placed america on a path to generational change in the health of our fellow citizens and in the health care system itself. It is great to be back in the senate. 40 plus short years ago in 1982i began my career in washington, D.C.
▶ 1:01:30Mr. Bell: As a counselor on the senate judiciary committee assigned to the subcommittee on security and terrorism and chaired by then senator jeremy denton, the former vietnam naval aviator in prisoner of war.
▶ 1:01:46Mr. Bell: 1980's marked the emergence of public choice theory, the idea that over time, government agencies choose their own well-being and the well-being of durham -- government adjacent nongovernmental agents over the cork mission congress is assigned to them. Many people believe, as I do, that this is a current central problem in the federal bureaucracy.
▶ 1:02:12Mr. Bell: It has taken deep ruthless in the health and human services producing waste, fraud and abuse. During the first trump administration as chief of staff of the office for civil rights, here is what I saw. I learn from the chief information officer that hhs had 20 procurement centers in different parts of hhs paying different prices for the same computers from the same vendors.
▶ 1:02:39Mr. Bell: I learned that hhs had 522 separate line item programs that each had 8-10 so programs for within that list were two dozen virtually identical job training programs. I learned from one program manager that the greatest challenge was getting her one billion dollars training budget out the door so congress would not cut her off.
▶ 1:03:03Mr. Bell: She said, we are in every ritz-carlton in the country every august to beat the deadline of the end of the fiscal year. I learned from senator -- the centers for disease control and prevention annual report that disparities in health care outcomes such as higher diabetes, higher breast cancer rates were due to diagnosis occurring sometimes decades too late.
▶ 1:03:30Mr. Bell: Cdc made practical common sense suggestions to address this challenge. When I asked the authors of a report during a meeting with the cdc practical recommendations if they were being implemented, their continents dropped and they said not really. Every time you met with doctors we heard the same complaint. I spent about one fourth of my time filling out paperwork to comply with federal regulations.
▶ 1:03:56Mr. Bell: Doctors often say the joy of the work they do is sullied by the drudgery of the compliance paperwork. If confirmed as inspector general, I will examine the, evaluate, audit and investigate agencies within hhs to support the initiatives of president trump and secretary kennedy.
▶ 1:04:18Mr. Bell: The traditional tools the inspector general are well known , remain independent, promote transparency, be tough and fair, make sure recommendations are clear. Produce timely materials without comp resin quality and make them accessible. The current challenges -- materials and make them accessible.
▶ 1:04:40Mr. Bell: We must explain exactly what is going on and provide actionable information in support of the president and secretary's courageous and innovative change of direction for the improved health of all americans. I am happy to answer any questions. Thank you very much. -- chair crapo: thank you very much. I will start with you and your oral testimony responded significant lead to this.
▶ 1:05:08Mr. Bell: You do have extensive experience at the department of justice and house of representatives and hhs. Could you quickly highlight your experiences in -- and a background of oversight, auditing and investigations and explain how that prepares you for this role?
▶ 1:05:27Mr. Bell: While at the department of justice I worked on complex crime cases including financial fraud and money laundering cases that involve working with forensic accountants. It was those accountants along with irs agents who would make the case for varied at, complex multistate prosecutions in litigation.
▶ 1:05:49Mr. Bell: I also worked in the house exercising oversight over the fetal tissue industry, an industry that this congress has banned in a federal statute. I conducted dozens of depositions, collected tens of thousands of pages of documents and informed a 500 page report with over 2000 exhibits.
▶ 1:06:13Chair Crapo: Thank you very much. Dr. callahan, I appreciated your testimony. You clearly pointed out the burdens that american agriculture faces from tariff and nontariff barriers globally. I am very glad to see you are in this position and understand that so clearly. I appreciate that president trump is now trying to get those trade barriers down.
▶ 1:06:43Chair Crapo: I look forward to getting the opportunity to work with him to do that. Idaho farmers and ranchers produce more than 150 commodities and I'm proud of every single one, whether it is our dairy, potatoes, sugar beets, or the list goes on. I would be here all day if I listed all of the unfair trade barriers they face. Do you commit to continuing to make yourself assessable to me and my staff to discuss these barriers in greater detail as president trump moves forward with his efforts?
▶ 1:07:12Dr. Callahan: Thank you chairman , absolutely. We are in an unprecedented time in terms of our negotiations to ensure that farmers and ranchers are able to get the market access and can compete on a level playing field all over the world could I really look forward to working with you with our advisors and stakeholders to make sure U.S. farmers and ranchers get those benefits.
▶ 1:07:38Chair Crapo: Mr. mody, what do you see as the top challenges facing the social security administration right now? What would be your focus to what needs to be accomplished?
▶ 1:07:52Mr. Mody: We have a leadership team that has been there for six or seven months that is prioritizing customer service and quality control. Jump into that and make sure we have the systems in place for employees to be successful and work with the american people.
▶ 1:08:11Mr. Mody: Recruit and retain the best and most qualified people to help run the organization and three is to get our public affairs in order and promote the mission-critical items within the workforce so we are all driving towards the same goal and also help with the triaging of incoming agencies.
▶ 1:08:39Mr. Mody: We want to bring that to the top. It has been beaten down by former commissioners. We -- this is going to be a premier organization and the best effort we will undertake.
▶ 1:08:53Chair Crapo: Thank you very much. Mr. goettman, idaho is home to more than -- small businesses which make up 91.2% of the idaho business community. Business certainty is key to their ability to compete domestically and abroad. I appreciated your testimony and experience with regard to the importance of small businesses. Would you please share with us your commitment to providing business certainty to U.S.
▶ 1:09:25Chair Crapo: Companies and your views on how trade policy can accomplish that?
▶ 1:09:29Mr. Goettman: Thank you for that question, Mr. chairman. American trade policy is working to do too big factors for americans, increasing good jobs with good wages and protecting unfair competition from overseas where the over industrialization and capacity of other foreign nations has dramatically impacted supply chains around
▶ 1:10:01Mr. Goettman: The united states and devastated small businesses, not only from my region in ohio but across the country. Our commitment -- my commitment here to ensure resiliency of manufacturing supply chains throughout the united states where those are many small businesses and to make sure the opportunity is therefore expansion and revitalization of those communities going forward.
▶ 1:10:25Chair Crapo: Thank you, I appreciate that.
▶ 1:10:30Sen. Wyden: Just one more point before we go to questions. I know that the committee republicans don't like it when I criticize them about their record on health care.
▶ 1:10:46Sen. Wyden: But if you have not had a single hearing, not one on health care in 400 days, that those eight republican record on health care is not surprising, it is inevitable. That is why it is an important issue. Let me start with you, Mr. bell, on an easy issue.
▶ 1:11:09Sen. Wyden: Four days into his term, the president sent hh s and other inspector general's a two sentence email telling them they were fired. The firings were an unprecedented assault and a clear signal that if they call out wrongdoing by this administration they will be shown the door. My view is the firings clearly violated the law.
▶ 1:11:35Sen. Wyden: The senate passed a bill 93-one calling the inspector general independence act. That is the title. It requires that before the president fires an inspector general, they have to give congress 30 days notice and explain to the congress in writing exactly why that is being done. Pretty straightforward read -- straightforward.
▶ 1:12:04Sen. Wyden: If you have what it takes to call out wrongdoing, that looks to me like a pretty good example. My question is, if president trump removes an inspector general without following the law, without providing congress 30 days notice and without explaining in writing why he is doing it, is he violating the law? And they should be in my view a yes or no question.
▶ 1:12:32Mr. Bell: Think of a question. Senator, I wasn't part of these discussions and the legal analysis that the president may have sought and I believe those matters have been already litigated and are over.
▶ 1:12:47Sen. Wyden: It's not over. It is still the law. This is not a close call. You can't order a sprite around here by a 93-1 margin. That is what this law passed. It is still a long. So what gives here? If it is a law, you have to comply.
▶ 1:13:13Mr. Bell: I will uphold the law if confirmed as inspector general, the law, regs. I appreciate the question but I was not part of that decision made by the president and I support the president and believe he is a man of great integrity.
▶ 1:13:31Sen. Wyden: This is not about those matters. This is about the text of black letter law which passed the congress 93-1. And you are talking about all kinds of other things, which is certainly your right to do so, but let the record show that somebody who is talking about supporting the law is not willing to apply it as it relates to his field. One last point that I want to get into, Mr. chairman.
▶ 1:14:05Sen. Wyden: Mr. bell has had experience doing investigations. He previously was dealing with planned parenthood and I am a privacy hawk.
▶ 1:14:21Sen. Wyden: I was struck I was struck by you and your staff demanding names, private communications of doctors, researchers, medical students and patients, stripping them of their privacy, exposing them to heightened threats and harassment and endangering their lives.
▶ 1:14:44Sen. Wyden: The investigation was predicated on doctor videos provided by a personal contacted, most -- and resulted in nine fold increases the threats to health care providers. I believe based on the public record, the documents we have reviewed, your actions on planned parenthood investigation work reckless.
▶ 1:15:10Sen. Wyden: He repeatedly made public, medical information, ignoring the warning of nonpartisan experts. Privacy should be not a blue and red issue. It ought to be fundamental. The founding fathers I was fundamental. Yet my reading of what went on in the planned parenthood investigation, you trampled on people's privacy. I intend to impose your nomination. Thank you. >> senator grassley.
▶ 1:15:41Sen. Grassley: I associate myself that senator crapo made about the situation for people in the middle. Thank you for taking a strong. Thank you for taking a strong stand. I want to make a short statement in regard to the same subject. I have been speaking a lot recently about the income crisis in farming.
▶ 1:16:12Sen. Grassley: Particularly in crops. Farmers are facing low prices and high input costs. The second-highest input cost per farmers is fertilizer. Directing this not in the form of a question but a statement, Dr. callahan and Mr. goettman, I know the responsibility for this rests with the commerce department.
▶ 1:16:41Sen. Grassley: Not at the trade representative's office. However, I hope you would take back to your team the message to get rid of the biden phosphate duties that removed moroccan phosphate as an option for american farmers. That represents roughly 70% of the global reserve of phosphates and almost making it non-accessible to american farmers.
▶ 1:17:12Sen. Grassley: To Dr. callahan, based on the fact president trump is meeting with president xi of china in seoul, we are hoping for good news from their meeting. Especially on soybean exports. I guess there is some news on that today. There are many nontariff barriers for U.S.
▶ 1:17:40Sen. Grassley: Farmers hoping to get their products sold to china, including beef producers. What are some of the nontariff barriers and how will you continue to push china to comply with trade and even their own regulations to allow more products into china?
▶ 1:18:04Dr. Callahan: Thank you for raising these important issues, senator grassley. In terms of the struggle faced by american farmers and ranchers on high input costs and low commodity prices, understand the stress and will work with the interagency entrée policy from the ustr side and working with colleagues across the U.S. government on domestic policy issues that can help U.S.
▶ 1:18:35Dr. Callahan: Farmers and ranchers. On china specifically, china has done some unprecedented damage this year, this growing season where they were not procuring U.S. agricultural goods as we all know. There is some sign of hope in advance of the presidents meeting with president xi. That said, we are pleased to see there are some soybean purchases happening.
▶ 1:19:05Dr. Callahan: That is long overdue. There are other sectors that also we need to see china lift its unjustified trade barriers. That is sorghum, chief, a number of commodities -- beef. Defining them all, I will get stakeholders upset if I do not need them but china across the board has been weaponizing agriculture.
▶ 1:19:30Dr. Callahan: I am looking forward if confirmed to engaging with china to ensure we can have a transactional relationship. We don't want to over rely on china as an export market. We also don't want that market to be zero. I look forward to working with you and others to address these issues.
▶ 1:19:48Sen. Grassley: In for you, Mr. goettman -- and for you, Mr. goettman, as we look to review usmca now that the mexico gmo corn issue is resolved. The number one issue I hear from iowa farmers on the usmca is getting U.S. dairy into canada.
▶ 1:20:10Sen. Grassley: For you too is it an enforcement issue or are there some changes we should push for in the review to get more dairy in the canada? -- into canada?
▶ 1:20:25Mr. Goettman: Thank you for the question, senator grassley. As you know, usmca is part of my portfolio going forward. Out of respect for the senate's responsibilities to advise and consent I have been unable to directly engage on issues related to usmca at this time.
▶ 1:20:49Mr. Goettman: I look forward to working with your team and ensuring we get the appropriate outcomes for iowa farmers when we review the usmca 2.0.
▶ 1:21:01Sen. Grassley: Can you comment on that, Dr. callahan?
▶ 1:21:05Dr. Callahan: Thank you. The review is an excellent opportunity to take into consideration the feedback we received from stakeholders and address areas that there is clearly room for improvement. One of those areas is to ensure that U.S. dairy producers get the benefits ustr originally negotiated in the web simply -- usmca.
▶ 1:21:30Chair Crapo: Senator daines.
▶ 1:21:33Sen. Daines: Dr. callahan, thank you for your years of service at ustr and your willingness to serve in this position. You will hit the ground running, which we need at this moment on behalf of producers across america.
▶ 1:21:50Sen. Daines: I greatly appreciate the work you have done alongside ambassador greer and president trump to put american agriculture at the forefront of these ongoing and encouraging trade negotiations. Dr.
▶ 1:22:11Sen. Daines: Callahan, you were seen director of agricultural affairs at ustr when we finally lifted the ban on beef with the china market and opened that export market up to american producers in 2017. I remember when I went over to china I brought along some wonderful states from one of my producers in the mile city, montana area and gave it to the premier and told him this is the best beef in the world.
▶ 1:22:39Sen. Daines: I told him australian beef, which was in the market, had a distinct kangaroo flavor. He will enjoy it when he finally gets to taste montana beef. By opening up the second largest beef import market in the world ranchers were able to export cuts that were not as valuable in the united states but at a premium.
▶ 1:23:05Sen. Daines: After years of negative margins, of drought, of challenges during covid, montana cattlemen have just started to finally turn a profit. Finally be able to make their payments to the banks for the loans they have for some the land they him. -- they own. This is a win for producers and also a win for consumers.
▶ 1:23:30Sen. Daines: Profitability helps ensure we have a secure and durable food supply and will help grow our herd size and bring down consumer costs over time. Enhanced export markets and not market distorting imports from argentina are a large part of that equation. Unfortunately china has put in place serious trade barriers and beef exports to china have plummeted since march.
▶ 1:23:58Sen. Daines: Foreign competitors sadly are filling the void in our absence and undercutting our american ranchers. Dr. callahan, are we making any progress in reopening the china market, the second largest beef export market in the world, or finding additional markets for U.S. beef?
▶ 1:24:19Dr. Callahan: Thank you, senator daines, for raising this very important issue and understand the imperative to continue to open and expand markets for U.S. beef. If confirmed, I am committed to reopening china's market to U.S. beef. China's behavior can be explained only with one word, retaliation.
▶ 1:24:46Dr. Callahan: We have a lot of work to do at ustr to reverse the trend that has been in place for several years. You are exactly right. In the early days, once the phase one agreement was signed, I and the interagency worked diligently to ensure china met its commitments, both the regulatory commitments and also pushing for those purchase commitments that were in the phase one agreement.
▶ 1:25:15Dr. Callahan: I will say during the first trump administration, ustr provided a report to the president on a weekly basis of china's purchases under the phase one agreement. Unfortunately over the last several years china has slid back and is not purchasing U.S. agricultural goods as they should. If confirmed, I am committed to reversing the trend and rebuilding access to the chinese market.
▶ 1:25:41Sen. Daines: I remember distinctly then senator david perdue and I went to beijing and were helping president trump and the administration finalize that phase one trade deal. I very happy to see now senator perdue as ambassador purdue on the ground in beijing. He understands the markets there and is a huge advocate for the president and his policies. I want to just close japan and south korea.
▶ 1:26:12Sen. Daines: They are some of our staunchest allies in east asia. They are also major purchasers of montana weed. Are we farmers -- wheat. Our wheat farmers are struggling. 90% of the consumers live outside the united states. Has the U.S.
▶ 1:26:38Sen. Daines: Wheat benefited in the framework agreement with japan? Can we expect more positive results with south korea?
▶ 1:26:52Dr. Callahan: Thank you, senator daines. In terms of our agreements on reciprocal trade negotiations we are really pushing for three areas of progress. One is lowering tariffs on U.S. agricultural goods. The second is eliminating unjustified nontariff barriers. Those are really the core areas of negotiation. The third is seeking purchase commitments from countries that choose to do so. U.S.
▶ 1:27:18Dr. Callahan: Wheat is one of the commodities a number of countries are committing their -- they are signing, use with the private sector, making plans to import more U.S. wheat to benefit U.S. wheat growers. In terms of japan and korea, will be pressing them to ensure there are no nontariff barriers that are unjustifiably holding back purchases of U.S. wheat and provide further market access for those countries as well.
▶ 1:27:48Sen. Daines: Thank you.
▶ 1:27:50Chair Crapo: Senator bennet.
▶ 1:27:55Sen. Bennet: Thank you for holding this hearing. Dr. halligan -- callahan, congratulations on your nomination. It's really important work. I'm a little worried your colleagues in the current administration are more focused on propping up the argentinian peso.
▶ 1:28:18Sen. Bennet: It seems to be doing several favors for president milay and expanding U.S. market access. We are doing this will china make purchases of soybeans at the expense of U.S. soybean farmers.
▶ 1:28:43Sen. Bennet: The embargo is a result of president trump's -- the china policies he put in in the last administration. I did not object to them but the incoherence of the policy has put us into the position to see these responses from china.
▶ 1:29:04Sen. Bennet: I'm worried even though he may and deal with china tomorrow, it sees beijing buying more soybeans which is good for us and good for our soybean farmers . I'm worried for the price for that is going to be that we will be sending U.S. technology to china that we should not be sending to china. We put ourselves in a weak position to negotiate this agreement instead of a strong one.
▶ 1:29:34Sen. Bennet: I'm concerned he will claim to solve the china soybean problem which he created at the expense of our national security. If that weren't enough, instead of selling it to foreign markets, the U.S. taxpayer is now longer peso. I cannot believe the position of my colleagues on the finance committee. Republicans and democrats.
▶ 1:30:02Sen. Bennet: It is an incredibly interesting trade for hedge fund managers like scott bessent to make but I doubt coloradans think this is a sound investment to make with their tax dollars. It is staggering.
▶ 1:30:21Sen. Bennet: I would challenge any of us to find a single parent in our state who believes we should be putting $2 billion of their money into speculate on the argentine peso. Now we have extended president milei a $20 billion currency swap with new conditions and no protections for our taxpayer dollars.
▶ 1:30:48Sen. Bennet: When we offered a similar swap to mexico in 1995, we added strict requirements to ensure the american people's money was not spent recklessly. Give was not lost in an unhedged trade. The trump administration has announced no such protections in this case. We barely have any explanation from the treasury department at all. To my knowledge this committee has not received any explanation.
▶ 1:31:18Sen. Bennet: After risking billions of taxpayer dollars propping up a country that has a history of default we have turned around and caused chaos in the markets for farmers and ranchers by announcing more argentine beef imports. The administration says this will lower beef prices for consumers but argentinian accounts for just about 2% of our imported beef. I know you know that, Dr. callahan.
▶ 1:31:48Sen. Bennet: Even if that amount were quadrupled it would be nowhere near enough to change grocery store prices in colorado or anywhere else. What it did change was confidence. That is what president trump undermined, confidence. The president told cattle ranchers that beef prices were too high in the market took that as a signal that more shocks were coming. Prices have dropped.
▶ 1:32:19Sen. Bennet: Speculation has spiked. Now producers are the ones paying the price. -- price for those tweets. Dr. callahan, what is the value doing in any of this if we are not going to reduce beef prices in america? You are an expert. Please let us know.
▶ 1:32:47Dr. Callahan: Thank you for raising this issue. I will say the negotiations with argentina are underway. If confirmed, my intention is to signal to U.S. farmers and ranchers that my single-minded effort across our negotiations is to open market access to benefit U.S. farmers and ranchers.
▶ 1:33:16Dr. Callahan: With argentina, they do impose nontariff barriers that prevent usb from entering their market. They also have tariffs. My intention in the negotiation with argentina's this will not be a one-way conversation about beef. We would like to see beef access into argentina as well.
▶ 1:33:34Sen. Bennet: Mr. chairman, let me just say I appreciate the coherence of your answer. I hope it reflects a coming coherence in this administration's trade policy, because our producers have not deserved to be put in the crosshairs of this incoherent policy. Thank you, Mr. chairman.
▶ 1:33:59Chair Crapo: Senator lankford.
▶ 1:34:02Sen. Lankford: Thank you for the work you have already done. I want to follow up on what my calling -- I would say the oklahoma cattle ranchers are very eager to see more market access. Soybeans, wheat, chicken, they are eager for this. There has been great frustration in the markets. This committee talked often with the ustr's office under president biden who did not aggressively pursue new trade deals.
▶ 1:34:34Sen. Lankford: This committee on a bipartisan basis poked the ustr to say go get new markets and negotiate new stuff so there is an expectation to go get new markets on this. American beef is the best of the world by far, not even close. More and more countries block us because they know we have better beef than theirs. We want access to push for that so there's a high expectation to do that. You have committed to that. I appreciate my kaulig racing this.
▶ 1:35:01Sen. Lankford: This is a big issue in oklahoma as well and thank you for the work you are doing on this to open new markets for american products. Beef and everything else included in that as well. Mr. bell, the office of the inspector general for hhs under the last administration started some work on medicare advantage programs and trying to do greater oversight. There's a problem with up coding. There's a problem with improper payments,.
▶ 1:35:31Sen. Lankford: Hospitals have stopped taking medicare advantage because they are so many problems and it. That's an unfinished project that is out there. When you commit to continuing on the oversight of medicare advantage to make sure we finish that out?
▶ 1:35:43Mr. Bell: Thank for the question. Yes, I believe from the public literature and academic literature there remains the chief problem with the advantage program. I have a long history of finding out how crimes are committed, how they are concealed and how to institute initiatives not just to improve statistics or improve fines but actually to solve a crime problem. We have a crime problem with medicare advantage.
▶ 1:36:13Sen. Lankford: I picked up some of the last administration was doing and I want to finish it out. Some things they were not doing. One of those was nursing homes. We asked for greater oversight. Because of the surveys they keep coming and having redundant questions were lost of paperwork. -- lots of paperwork.
▶ 1:36:40Sen. Lankford: The only one more form from us that the redundant form for something else coming in for one more survey coming back to them. We commit to helping hhs look at this issue so that we can reduce the amount of paperwork nursing homes can do so they can spend more time with their patients and less time filling out federal forms?
▶ 1:36:58Mr. Bell: I will pledge to sit down with you and talk with you and work out the details of how we might improve nursing home care and solve problems, not just take bureaucratic steps.
▶ 1:37:14Sen. Lankford: In 1997, congress passed almost unanimously a law dealing with assisted suicide, saying federal funds cannot flow to states if they actually use that money for assisted suicide. Several states have assisted suicide laws which I adamantly disagree with. There has not been oversight. The previous administration would not do oversight on how it's being used. We have data.
▶ 1:37:44Sen. Lankford: We have 60 individuals that chose to do assisted suicide in their state because they had an eating disorder. 20 of those were under 30. I find it appalling. What we don't know his federal funds being used to provide or do anything for that because the previous administration would not even look at it. Would you commit to actually doing oversight on what congress has passed and the law -- into law?
▶ 1:38:12Mr. Bell: The job of the inspector general is to be a student of congressionally passed laws. Including restrictions of federal funding. Yes that's exactly the kind of initiative I would undertake.
▶ 1:38:29Sen. Lankford: We are counting on that. Oversight over abortion facilities and abortion clinics and whether they should be disbarred, actually following medical procedures quickly. They just looked away and said they are just not going to do oversight. This is an area you work on a lot in the past to do real oversight to look with happening in these entities that are providing abortions.
▶ 1:38:57Sen. Lankford: They require oversight like everyone else. I know politically for the previous administration they did not want to look at it. This is real lives that count in this and care for women. Will you commit to looking at it and following the facts wherever they go no matter what the political repercussions are?
▶ 1:39:14Mr. Bell: Thank you for the question. That's exactly the kind of thing and inspector general must have the courage to do. Follow the law and follow the facts, even if it is unpopular.
▶ 1:39:26Sen. Lankford: Thank you. Thank you for the time.
▶ 1:39:29Chair Crapo: Senator whitehouse.
▶ 1:39:32Sen. Whitehouse: Mr. mody, when the commission was here I asked about what I called the muskrat crowd, infiltration at the social security administration and whether he would take a look at whether they had either damaged databases or ex will treat data improperly or left back doors --exfiltrated data
▶ 1:40:04Sen. Whitehouse: Improperly. He said there will be a total review, yes. Will you commit to making sure that total review gets accomplished?
▶ 1:40:12Mr. Mody: Given the question. Absolutely we will monitor pii at social security.
▶ 1:40:19Sen. Whitehouse: That's a different thing and completing a total review. What I would like to hear you see is the total review he promised will be completed honestly and accurately.
▶ 1:40:31Mr. Mody: A total review of what, senator?
▶ 1:40:35Sen. Whitehouse: The integrity of the social security databases.
▶ 1:40:38Mr. Mody: We will continue to monitor the databases on a daily basis.
▶ 1:40:43Sen. Whitehouse: That also did not answer my question. The chief data officer of social security who has since left said a huge data set was copied onto an unsecured cloud server and this is a very high risk proposition. The social security administration has denied that so now we have two competing versions of what happened.
▶ 1:41:07Sen. Whitehouse: Will you see to it that question is answered as part of that total review?
▶ 1:41:16Mr. Mody: The database must be secure and absolutely we will continue to monitor the security of the database.
▶ 1:41:24Sen. Whitehouse: Ditto for the federal parent locator service. Will you see to it whether or not the federal parent locator service still is secure from hacking and infiltration and so forth? You will be reviewed as part of that so-called total review?
▶ 1:41:50Sen. Whitehouse: Yes, senator.
▶ 1:41:51Sen. Whitehouse: Great. You didn't quite answer the questions but you are close enough for now, I guess. We will continue to pursue this because I think it is vitally important after people out of the tech sector in the info sector and data system sector have been messing around the databases and data is not being exfiltrated to private actors.
▶ 1:42:28Sen. Whitehouse: Is it true externalities are products to be baked into the price of that product? >> thank you for the question, senator whitehouse. I enjoyed our robust conversation about numerous issues will stop. -- issues.
▶ 1:42:55Sen. Whitehouse: You agree that is a basic economic proposition?
▶ 1:43:03Mr. Goettman: It is a cost that could be shifted. From one country or one company to another.
▶ 1:43:10Sen. Whitehouse: Let me be specific about that. If a foreign country or company acquires a for an against the U.S. competition, by virtue of its failure to meet health or environmental standards is that an appropriate thing to look at her terrifyin -- tariff -- for tariffing?
▶ 1:43:39Thank You Mr. Goettman: For raising the issue again. Invite mental enforcement among other arbitrage occurring on the global economy was something we should look at significantly and pursue it work with your team. Specifically what we have seen in southeast asia is the -- waste product, plastic waste --
▶ 1:44:04Sen. Whitehouse: That's where I was going to go with my next question. You remember our conversation. I think you have an enormous -- we all have the enormous amounts of waste plastic floating into our oceans that is a common burden for all of us. President trump articulate about this in the ocean plastics bill signing that I attended.
▶ 1:44:32Sen. Whitehouse: One of the reasons for this is the failure of these competitor countries to have adequate waste management systems in place. Will the adequacy of our competitor countries waste management be an issue you will take a look at and with particular reference to the plastic waste problem?
▶ 1:44:52Mr. Goettman: Thank you for raising this issue. I agree it is an issue we should dive into more deeply. I look forward to working with you and your team on that.
▶ 1:45:05Sen. Whitehouse: My time is up.
▶ 1:45:07Chair Crapo: Senator barrasso.
▶ 1:45:11Sen. Barrasso: Social security is critical to everyone in the country, specifically wyoming's aging population. I hear from seniors who depend upon the program. They paid into it their entire working life and earn the benefits. I believe they deserve timely, reliable service. Over the years this committee has heard a lot of promises from previous administrations about technology modernization at social security.
▶ 1:45:40Sen. Barrasso: Online portals, digital systems, that's all fine but not every community is the same and not everybody's ability to have computers or use computers is the same in an aging population. Too often washington has pushed a one-size-fits-all solution that does not work for every beneficiary.
▶ 1:45:56Sen. Barrasso: For many seniors in rural areas, a call or in person visit will make much more difference for people than the ranking member and his home state of oregon had the client, the constituent who called and was on hold a long time. We have had issues like that as well. That is a big concern. Past efforts have failed because people don't really see what is needed for the folks at home.
▶ 1:46:24Sen. Barrasso: If confirmed, how will you ensure ongoing modernization efforts don't really leave the rural communities behind? That's an issue from a bipartisan standpoint that we need to make sure rural areas are taking care of.
▶ 1:46:38Mr. Mody: The foundational pillar's premier customer service. Whatever channel the customer wants to be served. For rural communities we typically -- those that lack broadband access or online channel may not be available, we want a quicker workforce with the best processing systems in place. When a constituent walks in, they are served quickly and they can close out their case on the spot.
▶ 1:47:11Mr. Mody: We will dedicate -- we have made improvements. This is a holistic approach. You take a certain set of people out of their phone systems and allow them to service themselves online there's more room on the phones for the people to get their calls answered timely. We were at peak last year during the biden administration of about an hour call wait time average to talk to somebody. We are down to about seven minutes. That's a macro number.
▶ 1:47:36Mr. Mody: I will dive in the state level data and take inputs from congressional delegations, from people in the state and from state-level dashboards and make sure at the state level we are appropriately servicing every community.
▶ 1:47:49Sen. Barrasso: Dr. callahan, I want to talk about beef imports from argentina. In less than a year president trump made tremendous progress securing wins for american cattleman. He's achieved unprecedented market access for our beef producers with regard to australia, malaysia, the united kingdom. He's opening millions of new federal lands for grazing and I applaud these efforts.
▶ 1:48:14Sen. Barrasso: In the last few weeks were heard from ranchers in wyoming but all across the country concerned about a sudden increase in beef imports and an announcement related to argentina. Wyoming renters produce the best quality beef in the world. Cattle is also wyoming's number one cash crop. In my home state of wyoming cattle outnumber people by more than two to one. Printers are the lifeblood of so many communities all across the west, across the country and certainly here is my home state of wyoming.
▶ 1:48:44Sen. Barrasso: What assurances can you provide us argentine beef imports will not undercut prices for american ranchers?
▶ 1:48:54Dr. Callahan: Thank you for raising this important issue, senator barrasso. I can affirm that our efforts in all of our negotiations across the globe, agreements, reciprocal trade are intended to reverse the U.S. agricultural trade deficit. We went from a $6 billion agricultural trade surplus four years ago to a 34 billion dollars agricultural trade deficit last year.
▶ 1:49:24Dr. Callahan: For beef in particular I and colleagues are negotiating her increased and expanded beef market access with our trading partners across the board. With argentina, this negotiation is ongoing. My intention and the intention of all of our negotiations is to ensure our agricultural trade deficits turn into surpluses and U.S. cattleman have access to markets around the world.
▶ 1:49:52Sen. Barrasso: In terms of the time of these 80,000 tons, what is your timeframe you expect those to enter the U.S.? When do you see that happening? I'm also going to ask about the american sheep industry.
▶ 1:50:07Dr. Callahan: Thank you. Our negotiation with argentina is ongoing. I don't have a very specific timeline for that.
▶ 1:50:15Sen. Barrasso: How concerned you about the long-term future for america' sheep industrys?
▶ 1:50:25Dr. Callahan: The challenges faced by U.S. sheep producers is top of mind. In fact, this summer I visited with stakeholders in the state of utah. I heard their first-hand stories.
▶ 1:50:41Dr. Callahan: We have farmers, second and third generation farmers that are at risk of losing their ranches and if confirmed, I'm committed to ensuring american lamb producers can compete for the domestic market. They are being outcompeted by imports. We went to see that reversed as well.
▶ 1:51:02Sen. Barrasso: I will submit additional questions to those related to hhs if that is fine with you for the record.
▶ 1:51:08Chair Crapo: Certainly. Senator cantwell.
▶ 1:51:12Sen. Cantwell: Obviously there's a lot going on today in asia. It appears there was no progress on getting new market access for tree fruit, apples, cherries. No movement in getting U.S. fresh potatoes into japan.
▶ 1:51:32Sen. Cantwell: I think president trump finalized a framework deal but I think some good news may be on shipbuilding but no word on market access for those products. What can we do to eliminate these tariffs? What do know about this particular leaving out of this important product?
▶ 1:51:55Dr. Callahan: Thank you, senator cantwell. The issue of potato access into japan is one that I'm very versatile he -- personally familiar with and an issue I'm committed to resolving with japan. Japan's unjustified nontariff barriers that are preventing fresh potatoes to enter their market --
▶ 1:52:17Sen. Cantwell: I'm also talking about apples and cherries.
▶ 1:52:20Dr. Callahan: Apples likewise. The specialty producers, I have close connections with specialty producers, cherries, apples and others. I'm committed to opening market access for those products as well.
▶ 1:52:33Sen. Cantwell: When?
▶ 1:52:41Dr. Callahan: I will be engaging with my japanese counterparts to make sure they move forward.
▶ 1:52:47Sen. Cantwell: We know these are popular products with this country, for sure. This is about us -- trade agreements or deals that basically are not meeting agriculture need for the pacific northwest when it comes to potatoes. Clearly we want to see that. Mr. goettman, the shipping industry is important to the northwest.
▶ 1:53:13Sen. Cantwell: One estimate found fees will come out to about one more point -- 1.6 million for operators from china. I'm concerned one unintended consequence of the fees is that this will exacerbate north west issues related to U.S. ports, particularly the vessels will call on ports in vancouver for prince rupert -- or prince rupert.
▶ 1:53:43Sen. Cantwell: Will you do it ustr to lessen the fees and protect U.S. ports?
▶ 1:53:50Mr. Goettman: Thank you for the question, senator. We are looking to ensure that american jobs and american ports will continue to be robust and growing opportunities and we are not looking -- losing market share in the northwestern ports to canadian ports.
▶ 1:54:10Mr. Goettman: As we work through this there are several items that are important to consider in terms of the maintenance, taxes, the vessels. The taxes that you mentioned and our goal is to make sure we play on a level playing field here in the northwestern ports compared to canada.
▶ 1:54:34Sen. Cantwell: We need an aggressive approach here. I look forward to hearing more details on how you plan to accomplish that. Mr. bill, we are having of --Mr. bell, we are having a debate about how to deliver affordable care and make sure we keep a very low percentage of americans who don't have insurance and therefore have an uncompensated care which ends of raising all of our prices.
▶ 1:55:04Sen. Cantwell: Do you agree we should maybe -- I'm getting a little late. Have asked this question about extending the expiring premium tax credit? Do you agree we should extend or some version of that to cover americans and lower the cost of uncompensated care? Would you be responsible in seeking out waste?
▶ 1:55:31Sen. Cantwell: The budget reconciliation bill is a good example of that.
▶ 1:55:36Mr. Bell: Thank you for that question. I and before you to be inspector general at hhs and I know there's a lot of policy discussions going on on extending credits for obamacare.
▶ 1:55:56Mr. Bell: What I can promise you is that I will do examinations, evaluations, inspections, investigations and audits to make sure the programs that congress passes are run as efficiently as possible without waste, fraud, and abuse.
▶ 1:56:12Sen. Cantwell: How are you defining -- my time is expired. I will send you a question for the record. I think this issue is that there are ways to lower the cost of health care. We should all have a goal. I have not heard that goal being committed to but we should have a goal of having the low estimate of uncompensated care in the united states. If you have that goal, we will not be raising prices on everybody.
▶ 1:56:36Chair Crapo: Senator cortez masto. Congratulations on your nominations and welcome to your family members. Dr. callahan, I would like to start with you. United states does not produce commercially significant amounts of coffee. , in fact 99% of all coffee in the united states is imported.
▶ 1:57:01Chair Crapo: For that reason prior to this current administration americans paid zero tariffs on coffee import. However, because of this administration now we are seeing significant amounts of cost for coffee because of tariffs. I think you know this. Brazil is one of the top sources for U.S. coffee.
▶ 1:57:26Chair Crapo: Now because of the 50% tariffs this administration is put on brazil, we are seeing increased -- for 20% higher than it was a year ago. Retail coffee prices surged 20% in august alone. It's not a smart way to keep consumer prices down. What is the point of this tax?
▶ 1:57:49Dr. Callahan: Thank you for raising this issue, senator cortez masto. Just a back up a bit, on september 5, the executive order that was issued by the president lists a long list of products that are not produced in the united states, including copy. Products like coffee, cocoa, spices. The list is incredibly valuable to the trading partners that we are negotiating with.
▶ 1:58:17Dr. Callahan: The list, the p tap list, for some partners it represents 80% or more of their agricultural exports to the united states. For those trading partners that offer us an ambitious deal and are able to close the deal, we will be ready and willing to remove the reciprocal tariff on coffee and other products.
▶ 1:58:38Sen. Cortez Masto: I don't mean to cut you off but I only have so much time. How long does it take negotiated trade deal? Usmca took two or three years. We are talking about rising prices for consumers on products like coffee that typically did not have a tariff because we don't produce. I understand you want to use it as negotiating leverage but how many of these countries are you negotiating with right now? What is the timeline?
▶ 1:59:10Sen. Cortez Masto: Shouldn't there be certain commodities like coffee which we do not manufacture in abundance here that the american public does not have to be part of leverage in the cost of their pain at the expense of a decision made by this administration? For that reason I will tell you today, this morning senator paul and I introduced legislation to.
▶ 1:59:35Sen. Cortez Masto: Imposeno tax on coffee we don't think consumers should have to pace the price -- legislation to impose no tax on coffee. Brazil is number one exporter of coffee to the united states. There is bipartisan support to stop that tariff on brazil. Last night there was a vote for the senate joint resolution. I'm hoping there is common sense because I don't know how long it will take for these negotiations to take place.
▶ 2:00:04Sen. Cortez Masto: Back home in nevada prices are increasing at the grocery store, not decreasing. What can I tell americans about cups of coffee and how long it will take you to negotiate this?
▶ 2:00:17Dr. Callahan: Thank you, senator. At ustr we have been working night and day to finalize these agreements. Two agreements that were signed this weekend, the malaysian agreement and the cambodia agreement really are emblematic of the high level of ambition we are seeing from trading partners. The malaysian agreement. I was in agreement -- malaysia two weeks ago and worked around the clock to get that agreement over the finish line.
▶ 2:00:43Dr. Callahan: These agreements are being finalized and signed on really an unprecedented timeline. You are right on the length of time for the usmca versus the two agreements that were signed to this weekend took a matter of months. We have literally --
▶ 2:00:59Sen. Cortez Masto: Let me throw in here or add-on to my cattle ranchers as well. I'm hearing from them and the cattlemen's national beef association has said the president's plan to increase imports of argentina undercuts family farmers and ranchers and damaging the livelihoods of american cattlemen and women by doing little to introduce -- impact the prices consumers are paying at the grocery store.
▶ 2:01:25Sen. Cortez Masto: I cattle ranchers had I cattle ranchers h importing beef from countries like argentina undermines our producers and our progress. What can I tell them, that you are in ongoing negotiations? What you put my coffee companies and restaurants and little coffee shops out of business, what do I tell them? Oh well, we could not negotiate quick enough so sorry, you are out of business now, out of jobs in the economy is worse across the country. We need answers.
▶ 2:01:55Sen. Cortez Masto: This is not an answer for me. I hope you understand the urgency of this and I'm willing to work with you that I need better answers.
▶ 2:02:03Chair Crapo: Senator warren.
▶ 2:02:07Sen. Warren: President trump promised that he would lower cost for american families on day one. Those were his words. Instead he has prioritized a 40 billion dollar bailout for argentina and the wealthy hedge fund investors, starting with $20 billion in taxpayer money and $20 billion more fronted by U.S. banks, potentially guaranteed by taxpayers and who knows?
▶ 2:02:37Sen. Warren: Maybe more money going to argentina. This bailout came after argentina had a deal with china that directly undercuts american soybean farmers. Under trump, four and bankruptcies are surging, crop prices are falling and trump's tariffs are making fertilizer and farming equipment more expensive. Instead of helping american farmers who clearly need that help, he's helping the farmers in argentina.
▶ 2:03:08Sen. Warren: Don't take my word for it. Listen to the farmers themselves. One soybean farmer said, "I turn on the news and we gave $20 billion of taxpayer money to argentina, my competition. "the frustration is overwhelming." Dr. callahan, you are nominated to serve as america's chief agriculture negotiator.
▶ 2:03:40Sen. Warren: Do you agree that bailing out argentina while our own farmers are struggling is a betrayal of the american soybean farmer?
▶ 2:03:47Dr. Callahan: Thank you, senator warren. In our negotiations for agreements on reciprocal trade soy is a top negotiated commodity around the world and making sure countries have access to high-quality U.S. soybeans.
▶ 2:04:08Sen. Warren: I don't mean to interrupt but we are limited on time here. It's an easy question. I'm asking you if you agree with american soybean farmers themselves whose interests you are supposed to represent in this job? They are ringing the alarm about their livelihoods. Surging foreign bankruptcies, soybean farmers losing access to key markets.
▶ 2:04:40Sen. Warren: When we prop up these competitors. I don't understand. If you can't acknowledge there's a problem here, how do you represent american soybean farmers?
▶ 2:04:51Dr. Callahan: Thank you, senator warren. In my role as the U.S. assistant -- assistant ustr and chief negotiator I will have the interest of the U.S. farmers and ranchers --
▶ 2:05:06Sen. Warren: Can you acknowledge there is a serious problem for the soybean farmers?
▶ 2:05:11Dr. Callahan: Our current negotiations are making good on the promise to U.S. farmers and ranchers to reset our trade relationships.
▶ 2:05:23Sen. Warren: You can't even acknowledge the american soybean farmers are having trouble right now? Is that what you're telling me? You are going to sit there and say, no. We are working.
▶ 2:05:32Dr. Callahan: China's weaponization of agriculture has actually harmed U.S. soybean farmers.
▶ 2:05:39Sen. Warren: So farmers are in trouble because china quit buying from them. Who is china buying from them? What is that country?
▶ 2:05:50Dr. Callahan: From every country except the united states.
▶ 2:05:52Sen. Warren: What is the name of that country? Dr. callahan, what is the name of the country china is buying soybeans from right now?
▶ 2:06:01Dr. Callahan: China is repurchasing -- purchasing latin american soybeans.
▶ 2:06:07Sen. Warren: Named the country. If you can't answer the question I don't see how you can represent american soybean farmers. Dr. callahan let me ask about another constituency you would supposedly be fighting for, cattle ranchers. Trump bails out argentina, undercuts american soybean farmers. What is next? He's raising the quota for argentine beef imports.
▶ 2:06:33Sen. Warren: Importing argentine beef will devastate small ranchers, but with the big four meatpacking corporations controlling the market consumers are not going to see prices that are any lower. Once again, trump is helping argentina while american ranchers and american consumers pay the price. One illinois cattle producer called trump's plan, "a betrayal of the american rancher.
▶ 2:07:01Sen. Warren: Trump is acting more like president of argentina then president of the united states." do you agree with the american cattle ranchers that importing beef from argentina will harm them, particularly the small ranchers?
▶ 2:07:18Dr. Callahan: Thank you, senator warren. I'm in close communication with U.S. cattlemen.
▶ 2:07:24Sen. Warren: Can you just give me a yes or no on that? Do you understand this will harm small ranchers?
▶ 2:07:31Dr. Callahan: I'm confident the cattlemen understand --
▶ 2:07:35Sen. Warren: We are at time.
▶ 2:07:42Chair Crapo: Thank you very much. We have a vote under and encouraged all of my remaining colleagues to be really precise in your time so we cannot get the vote called on us. Next is senator blackburn.
▶ 2:08:00Sen. Blackburn: , thank you, Mr. chairman. Mr. bell, I want to come to you first. I appreciated the work that you did with me during my time at energy and commerce. The work you did serving as our staff director and chief counsel on the select committee on infant lives.
▶ 2:08:29Sen. Blackburn: What we discovered during that time that cms was not conducting a meaningful review of claims and audits of providers accounting to verify their medicaid funds. And some of those funds were being used for prohibited activities like abortion.
▶ 2:08:56Sen. Blackburn: The work that you led ultimately lead to uncovering more than $2 billion that was funneled to abortion providers over a two-year period. There was an additional $90.4 million out of the paycheck protection program during covid that want to those. You have done outstanding work to protect the unborn.
▶ 2:09:25Sen. Blackburn: You have done outstanding work in your previous experiences in government service. Now you will have that $1.8 trillion budget at hhs in front of you. I would like to hear how you will drill down and help with finding some of these loopholes that are there and medicaid and how we can close this to make certain we are good stewards of the taxpayers money.
▶ 2:09:54Mr. Bell: Thank you, senator, for that question. You may remember that part of the key to the success of the report, the 500 page report with 2000 exhibits is we had a senior forensic accountant working with the panel.
▶ 2:10:17Mr. Bell: My belief is that modern forensic accounting, along with some ai payment tools can cut across databases, cut across the distribution of funds to recipients both in block grants, population-based grants and other funds and find the granular details of the fraud and waste that is going on. The next step is to sit down with the people who are actually doing that work.
▶ 2:10:50Mr. Bell: 80% of the ig staff does medicare and medicaid work. Find them the tools and the skills to solve what is a crime problem. There are crime problems in these grants. These are not just places that say we need a little more training. We need to improve our return on investment. We need to look at the root crime problem that's occurring and solve that problem.
▶ 2:11:16Sen. Blackburn: Thank you. You did great work for us at the select committee. I know you were bringing that skill set to bear. Being able to close these loopholes and address that crime problem issue is the responsible thing to do for the U.S. taxpayer. I look forward to seeing you in that position. Dr. callahan, I would like to come to you.
▶ 2:11:40Sen. Blackburn: You had a lot of conversation this morning with members, whether it is beef or soybeans, which are important to our tennessee farmers. We are hearing about this every single day and protecting our farmers from this aggressive chinese barrier to entry. He will be vitally important. I understand that as a top priority for you. We thank you for that. I want to add one more tennessee thing to you.
▶ 2:12:13Sen. Blackburn: We have a lot of small and midsized farmers in our state that are in tomatoes and fresh market production. One of the things -- people don't realize $50 million of tomatoes come out of tennessee. We are third behind california and florida when it comes to tomatoes. I love going to the tomato festival in grainger county every year.
▶ 2:12:42Sen. Blackburn: But the problem they have got his mexican dumping. I would like to know you are going to address this for our farmers.
▶ 2:12:51Dr. Callahan: Thank you for raising this important issue, senator blackburn. The issues facing specialty crop producers are top of mind for me. If confirmed. I am committed to ensuring that fresh produce producers can continue to compete domestically for U.S. market access and also to open markets abroad as well. Absolutely committed to working with you on these important issues.
▶ 2:13:19Sen. Blackburn: Thank you. I yield back. >> thank you. I appreciate this hearing and congratulations to our nominees and your families for your nominations.
▶ 2:13:35Sen. Blackburn: I will not as we are talking about the high cost of many constituents that the healthcare.gov website came up with the prices of the aca marketplace premiums this morning and they are in my state and many cases more than doubling. That is something I hope we can address as well is reopening the government. Before I turn to other issues, I just wanted to start with a simple question to the nominees.
▶ 2:14:03Sen. Blackburn: If directed by the president to take an action that would break the law, would you follow the law or the president's directive?
▶ 2:14:10Mr. Mody: I don't do the president would asked me to break the law.
▶ 2:14:11Sen. Hassan: Would you follow the law?
▶ 2:14:16Mr. Mody: I don't believe the president would ask me.
▶ 2:14:17Sen. Hassan: That is not an acceptable answer because he has repeatedly done things the courts have found to been breaking the law already during this administration. Mr. goettman?
▶ 2:14:28Mr. Goettman: I do not believe the president would ever ask me to break the law.
▶ 2:14:35Sen. Hassan: Will you follow the law or not?
▶ 2:14:41Mr. Goettman: Should I receive something from any official I would consult with our office a government ethics and I would follow the law.
▶ 2:14:48Sen. Hassan: Dr. callahan.
▶ 2:14:50Dr. Callahan: If confirmed as the chief agricultural negotiator my efforts with focus --
▶ 2:14:57Sen. Hassan: Do you believe in following the law are not?
▶ 2:15:01Dr. Callahan: I cannot envision any situation where that would come to pass.
▶ 2:15:06Sen. Hassan: You can't answer whether you are a law-abiding or you will honor the oath to the constitution? Mr. bell?
▶ 2:15:15Mr. Bell: You and I discussed this in some detail in person. I agree with my colleagues. President trump not ask me to break the law. I also commit to follow the law and the constitution and to be a student of the laws congress passes so that the ig oversight and implementation of those laws will be thorough and complete.
▶ 2:15:39Sen. Hassan: I appreciate that. Mr. mody, the social security administration stopped publicly reporting call wait times, field office processing time and other performance metrics. It is unclear why the administration's -- would hide this from the public unless it is trying to hide longer wait times for seniors who rely on their hearted social security benefits.
▶ 2:16:04Sen. Hassan: If confirmed, will you commit to restoring ssa's performance dashboard and publicly releasing data on whether wait times are increasing for social security beneficiaries?
▶ 2:16:17Mr. Mody: The social security dashboard is the most transparent dashboard in the federal government. It is more than was previously published.
▶ 2:16:30Sen. Hassan: They stopped publicly reporting wait times, field processing times.
▶ 2:16:39Mr. Mody: The call wait times are there. I was on the dashboard yesterday. The call wait times are there.
▶ 2:16:44Sen. Hassan: That is not our experience or understanding. Mr. bell, the fentanyl crisis devastated families across new hampshire. Some corporations are excluding the fentanyl crisis to fraudulently obtain taxpayer dollars.
▶ 2:17:07Sen. Hassan: The hhs office of the inspector general recently found for-profit methadone clinics have billed the medicare program for more than $300 million of edition care services that patients never received. I launched my own investigation into whether for-profit methadone clinics are actually providing patients with the services that they claim they are.
▶ 2:17:30Sen. Hassan: As inspector general, will you continue to investigate whether opioid treatment programs are billing the federal government for millions in health care that they never provided to patients.
▶ 2:17:39Mr. Bell: I appreciate your care and concern about that program. I look forward to looking up -- learning more about it. I'm willing to sit down and work with you on the details of how we might improve those programs.
▶ 2:17:56Sen. Hassan: In the interest of time and knowing there are votes I will submit to you in writing. Thank you. >> thank you from the chair. On september 30. , the african growth and opportunity act of goa, trade preference program and the haiti economic program expired. Both programs in september.
▶ 2:18:32Sen. Hassan: Both agoa and the haiti program lower the cost of goods in the united states. Support economic growth at home and abroad and strengthen america's ties with economic partners, which also bolsters our national security.
▶ 2:18:52Sen. Hassan: It preserves the united states influence in areas where china is aggressively looking to expand its reach and is doing a great deal in that regard. The competition is serious.
▶ 2:19:09Sen. Hassan: For us to allow through neglect or for whatever reason the princes -- our participation with these trade programs with african nations shows a lack of insight. It is shortsighted.
▶ 2:19:27Sen. Hassan: China has become sub-saharan africa's largest bilateral trading partner with trade reaching a record c1 in fact, these unbreakable tariffs and just letting people -- things laps, china has a limited tariffs to boost trade and mass a $60 billion trade surplus with africa just this year.
▶ 2:19:59Sen. Hassan: Tapping africa's massive investment opportunity to take advantage of our chaos. If confirmed, you will leave the office within ustr that oversaw the implementation of a goa, haiti economic program. Do you agree that it is important for congress to maintain trade tools like these programs that combat china's influence while also promoting our values? Human rights and economic growth at home and abroad?
▶ 2:20:28Sen. Hassan: >> thank you for that question, senator. First I'd like to say I greatly enjoyed my conversations with your staff and the opportunity to meet with them at length and talked about this and other issues. As you mentioned, this is part of my portfolio going forward and out of respect to the senate I've not directly engaged in these matters today but I would like to address your question based on my past experiences.
▶ 2:20:58Sen. Hassan: >> do you think it is important to maintain these programs? I'm asking your opinion. >> in my personal opinion and based on your comments I've had the opportunity to run the export-import as the chief operating officer and what we saw was incredible influence and expansion of influence both commercially and politically throughout africa and I believe that the united states -- >> you mean from china? >> from china.
▶ 2:21:27Sen. Hassan: >> I'm only moving you along because I have limited time here. I think it's a major national security issue. It's important for our economy that we are seeing it has an impact on the cost of goods here. And when you are in africa, you can see it. You can see china is engaged. So it is in our interest to strengthen and extend these programs.
▶ 2:21:55Sen. Hassan: I was glad to see the trump administration supports a short-term reauthorization, but the reality is businesses are not going to really invest until they get a longer-term commitment. You are running in business, you get a one-year reauthorization. That doesn't tell you much at all. So I support that to the degree that we are teeing up for longer-term commitment.
▶ 2:22:22Sen. Hassan: If confirmed will you commit to working me and this committee on a bipartisan basis to get these programs back online and help us export strengthening america's interest? >> thank you for that comment. As I discussed with your staff, we are in support of an extension and I look forward to utilizing our resources together. >> that is an extension of agoa and hope haiti? >> yes, senator.
▶ 2:22:53Sen. Hassan: >> I was especially proud to work with senator cassidy on reauthorizing hope haiti which by the way, secretary rubio wrote. I hope that we will take this seriously. Again I know there are a lot of things going on obviously right now, but this extension just happened in september and we just moved over the business as usual. Meanwhile china is eating our lunch. Thank you so very much.
▶ 2:23:23Sen. Hassan: >> thank you, senator. >> thank you. I think all the witnesses for being here. Just at the outset, I do disagree with the administration tariff policy as many of us do and I understand that it's not for you to decide what that policy is, it is for you to implement. But I do want to ask some questions. The basic question is this.
▶ 2:23:53Sen. Hassan: If there is to be any tariff policy, is there an advantage that it be consistent? >> thank you for that question, senator. I think that the tariff policies of the president have resulted in significant -- >> I'm not asking that. I get it.
▶ 2:24:19Sen. Hassan: I get it that he believes in them and that all of you have a job to implement them what I'm asking a really simple question. Small businesses are having their heads explode in vermont because the tariff policy that they are subjected to, they don't like the tariffs, but what they can't deal with is that they change from day to day. The president saw an ad on tv, didn't like it, and he increased the tariffs.
▶ 2:24:53Sen. Hassan: It is tough enough to deal with the tariffs but if we don't know what it is from day to day, that is going to make are very difficult job all the more, that much worse. I'm asking basically do they have common sense concern about whether it is the terror policy that the consistent and reliable, something they can plan on?
▶ 2:25:14Sen. Hassan: >> senator, I think that we've been engaging in reversing decades of -- >> you know, this is very frustrating. The frustration here, I'm not holding you responsible for the tariff policies. That of the president, he got elected and he is entitled to pursue it. I believe it should be congress's responsibility.
▶ 2:25:38Sen. Hassan: But I'm just asking you will have a very major position and you will be getting advice to the president. And let me ask you this. When you say Mr. president, why don't we have the tariff policy be something folks can rely on, is that something you would suggest as a good idea?
▶ 2:25:58Sen. Hassan: >> senator, again, as part of negotiations, things change and it's important to maintain leverage to get the outcomes that we want supporting american jobs. And small businesses in particular. >> politicians get accused rightly often times of empty rhetoric and I won't suggest that is what it is but it is not an answer to the question. Let me ask you some questions.
▶ 2:26:32Sen. Hassan: You've gotten an incredible resume and I was very impressed in our meeting in the office. So I clearly think you have the skills and experience to do a very good job so I am going to ask you a couple lessons about what is happening to our economy. These tariffs, all of our firms, they operate on a very thin margin.
▶ 2:27:02Sen. Hassan: We had a hearing with senator grassley yesterday and of course we have some eyelet swimming farmers who can't sell their crop. Is there, in your view, a link between the tariffs imposed in the complete loss of market opportunities in china for our soybean farmers? >> thank you, senator welch.
▶ 2:27:30Sen. Hassan: Really, from my own perspective, negotiating agreements under typical trade, it's actually the opposite situation where previously, the united states had an average agricultural tariff imposed on imports of 5%. While we were negotiating with countries that have 10%, 15, 20%, 30% average tariffs on U.S. agricultural goods going into those countries. So the reciprocal terrorist heavily allowed the leverage.
▶ 2:28:01Sen. Hassan: If we can get both removal of nontariff barriers that have prevented U.S. agricultural goods from accessing markets and also bringing those incredibly high tariffs down so that the united states can compete on a level playing field. >> you did not address what I said and you don't dispute as a fact that iowa farmers have not sold a bushel of soybeans to china and they are getting hammered.
▶ 2:28:29Sen. Hassan: I'm just going to end with a quote that really reflects the dismay among our businesses. These are practical people, a lot of them voted for the president, but they've got to run a business. Bill wilson runs burton bea -- birds and beans coffee is a nightmare for me and my daughter. The U.S. government is destroying our business. Simon perkins recently ran for this.
▶ 2:29:01Sen. Hassan: The reality is that rapidly changing tariff environments are killing us. I mean, this is small businesses. These are full our communities. We love what we do and we are under attack. For 90 years with proudly served our community through good times and hard. Today's economic pressures, rising cost and shrinking margins are testing small local businesses like never before.
▶ 2:29:33Sen. Hassan: But now the very people who are in place to help are threatening the very way we conduct our business. They are getting hammered with state tariffs. I guess I would end by making a plea. You are going to be implement to his tariff policy. But there is dismay among everyday people running businesses about the ever-changing nature of these tariffs. They really have a dramatic impact on our tourism business in vermont. It's really hurting.
▶ 2:30:02Sen. Hassan: So at the end of the day I hope that their reality of what is happening to our farms, to our bike shop owners, the coffee bean sellers delivered to the president so there can be some adjustment. And I do have one last question. I'm getting a little latitude here from the chair but I do want to ask one on social security. The death benefit when your spouse dies is $255.
▶ 2:30:38Sen. Hassan: That was in 1955. In today's money that the over $3000. We haven't adjusted since, and I've got a bill in so that we would bring up that benefit to reflect inflation. Is that something you would support? >> senator, I know this is something you are passionate about. >> I can hear you. >> I know this is an issue you've been working on for some time.
▶ 2:31:07Sen. Hassan: It would be inappropriate for me to comment on whether I can support. >> you think the 1955 benefit works in 2025? >> costs have certainly gone up. >> I hope we can get your support on that, thank you. >> senator marshall. >> let's start with Mr. modi, congratulations on everyone's nominations. A person well into my office, appreciate your past help.
▶ 2:31:37Sen. Hassan: Talk just briefly on opportunities and challenges in social security as you see them. >> thank you, senator. This is an organization that has kind of bifurcated silos. We want to make sure everyone is driving towards mission-critical goals which are pre-or customer service and pristine quality control. We develop that holistic approach at social security with the workforce -- >> thank you so much.
▶ 2:32:09Sen. Hassan: Dr. callahan, the usmca trade agreement I think has been probably the most successful trade agreement of my lifetime. Mexico and canada have replaced china in so many of our top trade partners. But like every agreement, he can get better or worse. This agreement is up here soon. What are the opportunities and the challenges briefly as you see them going into this new round of negotiations. How do we put wind beneath each other's sales here?
▶ 2:32:37Sen. Hassan: >> 100% agree to the value of the usmca agreement. That said, the U.S. has a massive agricultural trade deficit with both canada and mexico and there are certainly areas for improvement.
▶ 2:32:55Sen. Hassan: We are reviewing the comments received by federal register notice and we will be taking all of those comments into consideration when we think through how we can ensure that the benefits that were negotiated on paper are seen by U.S. farmers and ranchers large and small across the united states. >> I just wanted to add to the topic that sorghum is a very important market and not just china, but mexico as well. Let's move on to value add.
▶ 2:33:27Sen. Hassan: Kansas farmers make money when we take soybeans and turn it into bacon, when we take corn and turn it into beef, and we take sorghum and turn it into biofuels. The rest of the world has learned how to grow corn and soybeans and so many people, the national media doesn't understand that. We average 2 billion bushels of exported corn per year, this year 2.8 six. Soybean exports are up 10% as well.
▶ 2:33:53Sen. Hassan: The challenge, the president has agreements with seven of the 10 major trade partners that we have. He is dotting the I's and crossing the t's as well coming forward.
▶ 2:34:10Sen. Hassan: What are the opportunities in your eyes for ethanol and by the way, one reason that beef holds value right now so well is because of the trunk 45 agreements he did with japan, south korea, etc., that we are selling these value added products to these countries. We don't make enough hamburger here to satisfy americans when it comes to hamburger but we are exporting our high-value beef. Talk a little bit about how you see this high-value product for agriculture.
▶ 2:34:39Dr. Callahan: We really have an unprecedented opportunity to use the leverage of the reciprocal tariffs to open markets around the world including, most importantly, developing countries emerging markets where there is increasing opportunities to increase our market share around the world. So there are a number of trading partners that are long-standing, very important, mature markets.
▶ 2:35:06Dr. Callahan: We want to make sure we are maintaining those markets, decreasing nontariff barriers where we can, but also importantly opening up new markets and that is what our efforts right now are focused on, opening up those new markets. >> as opposed to just selling more corn, what are the opportunities there, the value to add? >> absolutely, you are right that our capacity to crush soybeans domestically is growing.
▶ 2:35:35Dr. Callahan: That means we need markets for soybean meal. So we are looking at and receiving input from stakeholders on where are those ships, and what new tariff lines do we need to open? You are absolutely right that it's not the traditional discrete commodities that we need to think about, but does dahlia added products. You're absolutely right we need to open those markets as well.
▶ 2:36:01Dr. Callahan: >> tell me the opportunities as you see them in the western hemisphere in your markets as well. >> senator, as you know, because of my position as part of my future portfolio, I am the advising consent responsibilities of the senate, I've not been able to be directly engaged in the usmca discussions.
▶ 2:36:31Dr. Callahan: That is something we certainly heard from many companies manufacturing in the united states that would like us to pay more attention in general to rules of origin and transformation and other challenges that we face for products across the border from mexico and canada. >> freight. I think I'm out of time, Mr. chairman. >> that is correct. >> thank you for paying attention, senator marshall. Senator wyden has another few questions and then that will be the end of the hearing.
▶ 2:37:01Dr. Callahan: Senator wyden?
▶ 2:37:03Senator Wyden: I'll be brief. Dr. callahan, with respect to the morning, you've talked a lot about market access and opening markets. That has been kind of your go to. I think there is something out that is right at the heart of this, and that is farmers and ranchers are struggling because of higher input costs.
▶ 2:37:31Senator Wyden: That's what I heard in eastern oregon from ranchers, they are getting killed on a higher input cost. And they say it is because of the trump tariffs. On everything from fertilizer to equipment, these deals involve tariffs 10%, 15%, 19%.
▶ 2:37:51Senator Wyden: In my question to you, I've got a couple of quick faith the chairman knows about the wrapped up, what are you doing about the tariffs that are jacking up input cost? And I'd like to hear what you are doing now because I've heard a lot about things that might go on, but the reality is we had months and months of this, and we continue to get clobbered with these kind of costs. So what are you doing in terms of input cost tariffs?
▶ 2:38:20Dr. Callahan: Thank you, senator wyden. My current efforts in the agreement on reciprocal trade negotiation absolutely is I understand the urgency in getting these agreements over the finish line rapidly so that we can open opportunities for U.S. farmers and ranchers. On those specific import costs we did discussed earlier rising cost of fertilizer.
▶ 2:38:47Sen. Wyden: What are you doing about that? Let's freeze-frame that. I've heard mention of a variety of things that I'm not clear on something that is being done today. Imagine fertilizer. What is being done today to reduce those fertilizer costs because that is a big input.
▶ 2:39:05Dr. Callahan: Within ustr, the fertilizer lines are covered by our industrial goods office.
▶ 2:39:11Sen. Wyden: What are you doing? You are here today, you are in my office, people from the northwest know you. What are you doing today to lower input cost?
▶ 2:39:23Dr. Callahan: I have a very close relationship with the assistant ustr for industrial goods and we are both cognizant on the urgency to insured --
▶ 2:39:32Sen. Wyden: What you're saying is you have a friendship with somebody else. That's not being responsive to the question. A couple of other quick famous just by way of matters that senators on our side are concerned about, it's been pointed out that for example there is discussion with respect to planned parenthood and various issues related to their work and I would like to put something into the record that indicates that at least 13
▶ 2:40:03Sen. Wyden: States concluded that planned parenthood had not engaged in the alleged wrongdoing that was discussed and eight other states declined to investigate at all, citing a lack of evidence. >> without objection.
▶ 2:40:16Sen. Wyden: Great. One last point. In response to senator hassan, there is a judgment on the part of our committee investigators that you are just completely incorrect. The trump administration has removed dozens of customer service metrics that were published under commissioner o'malley. I would urge you particularly since the record stays open to take another look at it because our staff found something that was incorrect in your testimony.
▶ 2:40:48Sen. Wyden: Put both of those matters into the record, Mr. chairman, I thank you. >> thank you, senator wyden. I want to thank all of our nominees for appearing before us today. This hearing went on for two and a half hours now, and you have weathered it. You are each clearly qualified to serve in the respective positions to which you've been nominated and I look forward to voting review nominations. I urge all of my colleagues to do the same.
▶ 2:41:17Sen. Wyden: With that, I remind my colleagues that the deadline for submitting any the record is 5:00 p.m. On monday, november 3. With that, the finance committee is adjourned. Thank you all for attending today.
▶ 2:41:59Sen. Wyden: [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap.org]