Category: US Senate

Source: United States Senator for Michigan Gary Peters

06.22.22

WASHINGTON, D.C. – The Senate has passed bipartisan legislation authored by U.S. Senator Gary Peters (MI) which would strengthen federal efforts to expand domestic manufacturing of semiconductor chips. The Securing Semiconductor Supply Chains Act, which Peters led with U.S. Senators Rick Scott (R-FL) and Marsha Blackburn (R-TN), would direct the U.S. Department of Commerce’s SelectUSA program – in collaboration with federal agencies and state economic development organizations – to develop strategies to attract investment in U.S. semiconductor manufacturers and supply chains. The bill passed amid the global shortage of semiconductor technologies that has caused major disruptions for a wide range of industries including manufacturers and automakers in Michigan. The legislation now heads to the House of Representatives.

“The ongoing semiconductor chip shortage has caused major disruptions for Michigan’s manufacturers and automakers and further exposed an overreliance on foreign producers that threatens our economic and national security,” said Senator Peters, a member of the Senate Commerce, Science, and Transportation Committee. “By boosting our semiconductor manufacturing capabilities and driving investments in American manufacturing, this legislation will bolster our domestic supply chains and strengthen our global economic competitiveness. I was proud to author this bipartisan bill and see it passed in the Senate – and I urge my colleagues in the House to take swift action to get it signed into law as soon as possible.”

“The recent global chip shortage put American medical equipment, computer, and car supply chains on hold,” said Senator Blackburn. “The passage of the Securing Semiconductor Supply Chain Act in the Senate gets us one step closer to making existing resources available to producers of semiconductor equipment. This work is essential to decreasing our reliance on companies controlled by the Chinese Communist Party, restoring global supply chains, and boosting manufacturers in Oak Ridge and Nashville, Tennessee.” 

“It’s more important than ever that we bolster the United States’ ability to be self-sufficient in our domestic semiconductor supply chain,” said Senator Scott. “Our good bill will address the crippling shortage facing our businesses and help our nation’s economy remain competitive on a global scale to fight against Communist China’s growing influence. I’m proud to see this critical legislation pass the Senate and urge its quick passage in the House.” 

“While the global competition across the semiconductor industry remains fierce, we are laser-focused on adopting innovative solutions to ensure that the future jobs and investments of this vital sector are made right here in the U.S.A.,” said Quentin L. Messer, Jr., CEO of the Michigan Economic Development Council (MEDC). “We are grateful for the advocacy of Senator Peters and his colleagues in the Senate who are helping to put the world on notice that the United States – and specifically, Michigan – remain home for all aspects of the semiconductor industry and beyond.”

“Thank you to Senator Peters for his leadership in passing legislation that will grow domestic semiconductor manufacturing and strengthen our supply chains,” said Governor Matt Blunt, President of the American Automotive Policy Council. “This legislation is critical to auto manufacturers, and promotes economic growth in the U.S. auto sector.”

The SelectUSA program was established by President Obama in 2011 to improve federal efforts that attract job-creating business investments in the United States and support U.S. firms. Peters’ bill comes amid a report issued last year by the Biden Administration, which emphasized that the SelectUSA program could be leveraged to strengthen private sector investments across the semiconductor manufacturing supply chain.

The Securing Semiconductor Supply Chains Act would direct the SelectUSA program to engage with state-level economic development organizations about how they are attracting foreign direct investment to onshore activities related to semiconductor manufacturing, and identify what resource gaps or other challenges they face in achieving that goal. SelectUSA would then be required to develop strategies to increase investments in semiconductor manufacturing.

Peters has repeatedly pressed for action to address the ongoing semiconductor shortage crisis that has stymied automotive innovation in recent years, and impacted workers and industries across the country – including the Michigan auto industry. In March, Peters convened a field hearing in Detroit to examine how Congress can help bolster U.S. innovation for electric and autonomous vehicles by increasing domestic production of semiconductor chips and other technologies, while also delivering economic, environmental, and safety benefits for the American people.

Peters secured multiple provisions in the competitiveness package that passed both the Senate and House to bolster U.S. semiconductor production, including a provision with U.S. Senator Debbie Stabenow (MI) to create a $2 billion supplemental incentive fund to support the domestic production of mature semiconductor technologies in the coming years and ensure that semiconductor projects that support critical manufacturing industries are given priority status, which would include the automotive sector. This is in addition to $50 billion already in the bill to incentivize the production of semiconductors of all kinds in the U.S.—for a total of $52 billion. The competitiveness bill also includes Peters’ bipartisan Investing in Domestic Semiconductor Manufacturing Act, which would ensure that federal incentives to boost domestic semiconductor manufacturing include U.S. suppliers that produce the materials and manufacturing equipment that enable semiconductor manufacturing. In doing so, the legislation strengthens the supply chain for semiconductors and bolsters Michigan manufacturers. The package also authorizes increased funding for the Manufacturing Extension Partnership program, which has been a priority for Peters.

As Chairman of the Homeland Security and Governmental Affairs Committee, Peters was selected to serve on the conference committee tasked with finalizing the competitiveness bill by negotiating differences between the House and Senate-passed bills. At the first meeting of the conference committee, Peters underscored the need to fully fund the CHIPS Act to boost semiconductor production, create good-paying American jobs, and address ongoing supply chain challenges. Peters has additionally raised this supply chain disruption with numerous Biden Administration officials in conversations both before and after President Biden took office – including during a roundtable discussion with Commerce Secretary Gina Raimondo in Michigan.

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Source: United States Senator for Michigan Gary Peters

06.22.22

WASHINGTON, D.C. – The President has signed into law three bipartisan bills authored by U.S. Senator Gary Peters (MI), Chairman of the Senate Homeland Security and Governmental Affairs Committee, to significantly strengthen our nation’s cybersecurity. The new laws will increase cybersecurity coordination between the federal government and state and local governments, bolster the federal cybersecurity workforce, and secure federal information technology supply chains against threats.

“Increasingly complicated cyber-attacks on everything from state and local networks to federal information technology systems show why our nation must have adequate resources and qualified personnel to defend against criminal hackers and foreign adversaries for years to come,” said Senator Peters. “These new laws will bolster cybersecurity at every level of government, and ensure we are prepared to prevent cyber-attacks that continue to disrupt lives and livelihoods, and threaten our national security.”

Michigan’s Chief Security Officer has estimated that criminal hackers try to break into the state’s networks more than 90 million times a day – though they are usually stopped. Peters’ State and Local Government Cybersecurity Act facilitates coordination between the Department of Homeland Security and state and local governments in several key areas. The legislation requires the Cybersecurity and Infrastructure Security Agency (CISA) to provide state and local actors with access to improved security tools, policies and procedures, while also encouraging collaboration for the effective implementation of those resources, including joint cybersecurity exercises. The legislation also builds on previous efforts by the Multi-State Information Sharing and Analysis Center (MS-ISAC) to prevent, protect, and respond to future cybersecurity incidents. These changes ensure that government officials and their staffs have access to the hardware and software products needed to bolster their cybersecurity defenses.

Government agencies often cannot compete with the salaries and other benefits offered by tech giants in Silicon Valley, but they provide valuable opportunities to serve the country and defend our cyber front lines. Peters’ Federal Rotational Cyber Workforce Program Act creates a civilian personnel rotation program for cybersecurity professionals at federal agencies. This program enables employees to spend time working at different government agencies, allowing them to gain experience beyond their primary assignment and expand their professional networks. The legislation provides opportunities to help attract and retain cybersecurity experts in the federal government by offering civilian employees opportunities to enhance their careers, broaden their professional experience, and foster collaborative networks by experiencing and contributing to the cybersecurity mission beyond their home agencies.

Peters’ Supply Chain Security Training Act directs the General Services Administration (GSA), in coordination with the Department of Homeland Security (DHS), Department of Defense (DOD) and the Office of Management and Budget (OMB), to create a supply chain security training program for federal officials with supply chain risk management responsibilities. The bill also requires the Office of Management and Budget (OMB) to develop guidance for federal agencies to adopt and use the training program and how to select officials to participate in the training.

As Chairman of the Homeland Security and Governmental Affairs Committee, Peters has led efforts to enhance our nation’s cybersecurity. His historic, bipartisan bill to require critical infrastructure owners and operators to report to CISA if they experience a substantial cyber-attack or if they make a ransomware payment was signed into law as a part of the recent government funding legislation. Peters’ bipartisan bill to enhance cybersecurity assistance to K-12 educational institutions across the country was also signed into law. Additionally, Peters secured several provisions in the bipartisan infrastructure law to bolster cybersecurity – including $100 million fund to help victims of a serious attack recover quickly. Peters has also authored and passed significant reforms out of the Senate to require civilian federal agencies to report to CISA if they experience a cyber-attack and ensure federal agencies can quickly and securely adopt cloud-based technologies that improve government operations and efficiency.

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Source: United States Senator for New Jersey Bob Menendez

WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the Senate Finance Committee, today applauded the advancement of the Disaster Retirement Savings Act, which was included in the bipartisan Enhancing American Retirement Now (EARN) Act passed by the Senate Finance Committee today.

Sens. Menendez and Bill Cassidy, M.D. (R-La.) introduced the Disaster Retirement Savings Act (S.2583) last year to expedite relief for those affected by natural disasters. The legislation allows individuals impacted by natural disasters to access their retirement benefits without being forced to pay any withdrawal fees or penalties in order to cover emergency costs.

“I applaud the Senate Finance Committee’s passage of the EARN Act to improve our nation’s retirement system. I’m proud to have worked with Sen. Cassidy, Chairman Wyden, Sen. Cardin, and my colleagues to include the provisions of my bipartisan Disaster Retirement Savings Act to expedite relief for Americans affected by natural disasters,” said Sen. Menendez. “When this bill is signed into law, individuals affected by disasters will no longer be at the whims of Congress to withdraw, without penalty, from their retirement accounts after a natural disaster—the importance of which New Jersey families know all too well after Superstorm Sandy. This will provide relief for those impacted by Hurricane Ida last year and all those who may be impacted by future disasters.”

The EARN Act will make improvements to the retirement system by expanding retirement for working individuals and retirees. The legislation will:

• Permanently, and without an act of Congress, allow individuals to withdraw up to $22,000 per natural disaster, without penalty from a 401(k) or IRA plan;
• Expand the saver’s credit to allow for matching retirement contributions for low-and moderate-income savers to save for retirement;
• Allow, for the first time, the ability for individuals to take up to $1,000 out of their retirement savings plan for emergency savings, without penalty;
• Remove the 10% early withdrawal penalty on retirement savings for individuals who are domestic abuse victims; and
• Expands workplace retirement savings opportunities for part-time workers by reducing the requirement that a part-time employee work for 500 hours for three years, down to two years. This will significantly improve access to a retirement savings plan for women—especially women of color.

A section-by-section summary of the legislation can be found HERE.

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Source: United States Senator for New Jersey Bob Menendez

WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the Senate Banking Committee and the highest-ranking Latino in Congress, today led several of his Senate colleagues, including Senate Banking, Housing and Urban Affairs Chair Sherrod Brown (D-Ohio), in urging Federal Reserve Chair Jerome Powell to establish a more robust, transparent, and standardized selection process for appointing directors and presidents to promote racial, ethnic, gender, and economic diversity in leadership positions across the twelve regional Federal Reserve Banks.

“The Federal Reserve has long suffered from a lack of diversity, particularly at the leadership level. In the 108-year history of the Federal Reserve System, there have only been four nonwhite Federal Reserve Bank presidents,” wrote the senators to Chair Powell. “The Boards of Directors at the Federal Reserve Banks are only slightly better. While diversity among Class C directors appointed by the Board of Governors has increased in recent years, Class A Directors remain 92% white and 69% male, and Class B is 56% male and 61% white, with only a single Latino. This lack of diversity among board members directly contributes to the lack of diversity among bank presidents, as it is the Board of Directors that select Federal Reserve Bank presidents.”

The senators also pointed out that in addition to a lack of racial and gender diversity, the leadership at the Federal Reserve Banks is notably lacking sectoral diversity. As of 2021, 75% of current directors came from banking or business, 76% of directors that represented a business represented a big business, and only 5% of bank directors represented labor. Significant segments of the economy – like small businesses and workers do not have a seat at the decision-making table, despite a clear statutory mandate to consider sectoral diversity in selecting Class B and C Directors.

“The lack of diversity at the Federal Reserve is not only harmful to underrepresented groups, it has a negative impact on the Federal Reserve’s dual mandate to promote maximum employment and price stability, to promote the safety and stability of the financial system, and its ability to advance consumer protection and community development,” added the senators. “…The current makeup of the Federal Reserve Banks does not reflect the demographic and economic diversity of the districts they serve. In order to promote a more effective Federal Reserve System that better represents the American economy, we urge you to lead a coordinated effort with the Federal Reserve Banks aimed at developing and adopting an updated search and selection process for Directors and Presidents at the Regional Banks.

Sen. Menendez pressed Chair Powell to make substantive changes to the Federal Reserve’s leadership selection process at today’s Senate Banking hearing on the Fed’s Semiannual Monetary Policy Report to Congress.

[CLICK HERE TO WATCH SEN. MENENDEZ’S FULL LINE OF QUESTIONING]

Last month, Senator Menendez voted against the confirmation of Powell to serve a second term as Chair of the Federal Reserve Board of Governors given the Federal Reserve’s failure under his leadership to appoint Latinos at the highest levels of the Fed’s leadership. He also led 21 colleagues from the Congressional Hispanic Caucus in urging the Fed to choose a Latino candidate as the next President of the Dallas Federal Reserve Bank, which was the most recent missed opportunity by the Federal Reserve to appoint a Hispanic or Latino American as president of a regional Federal Reserve Bank.

Sen. Menendez recently secured a personal commitment from Michael Barr, nominee to serve as a Member and Vice Chairman for Supervision at the Fed, on developing a transparent process with meaningful public input to ensure the Federal Reserve’s leadership better reflects the full diversity of America. In the coming months, the Federal Reserve will have two new opportunities to consider and appoint a Hispanic or Latino American as the next president of either Chicago or Kansas City Federal Reserve Banks. Sen. Menendez has been leading Congressional efforts to push the Federal Reserve to start a new chapter in the institution’s 108-year history in which Latinos will finally have a voice at the highest echelons of the Fed’s leadership.

Joining Sens. Menendez and Brown in sending the letter were Sens. Elizabeth Warren (D-Mass.), Catherine Cortez Masto (D-Nev.), Ben Ray Luján (D-N.M.), Bernie Sanders (I-Vt.), Dick Durbin (D-Ill.), Raphael Warnock (D-Ga.), and Alex Padilla (D-Calif.).

The full text of the letter can be found HERE and below.

Dear Chair Powell:

We urge the Board of Governors to take a more active role in promoting racial, ethnic, gender, and economic diversity in leadership positions at the twelve regional Federal Reserve Banks. We strongly encourage the Board of Governors to coordinate the establishment of a standardized process for appointing directors and presidents that promotes meaningful transparency and public input.

The Federal Reserve has long suffered from a lack of diversity, particularly at the leadership level. In the 108-year history of the Federal Reserve System, there have only been four nonwhite Federal Reserve Bank presidents.¹ The Boards of Directors at the Federal Reserve Banks are only slightly better. While diversity among Class C directors appointed by the Board of Governors has increased in recent years, Class A Directors remain 92% white and 69% male, and Class B is 56% male and 61% white, with only a single Latino. This lack of diversity among board members directly contributes to the lack of diversity among bank presidents, as it is the Board of Directors that select Federal Reserve Bank presidents.

In addition to a lack of racial and gender diversity, leadership at the Federal Reserve Banks is notably lacking in sectoral diversity. According to the Federal Reserve Act, the leadership of member banks are supposed to represent “the public” and take “due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers” in the selection of Class B and C Directors. Despite this clear statutory requirement, as of 2021, 75% of current directors came from banking or business, 76% of directors that represented a business represented a big business, and only 5% of bank directors represented labor.2 Directors are supposed to represent the public, but huge segments of the economy – like small businesses and workers – lack a seat at the table.

The lack of diversity at the Federal Reserve is not only harmful to underrepresented groups, it has a negative impact on the Federal Reserve’s dual mandate to promote maximum employment and price stability, to promote the safety and stability of the financial system, and its ability to advance consumer protection and community development. The evidence is clear—diversity impacts results. Studies have shown that companies in the top quartile for racial, ethnic and gender diversity were more likely to have returns above their industries’ national medians.³

The current makeup of the Federal Reserve Banks does not reflect the demographic and economic diversity of the districts they serve. In order to promote a more effective Federal Reserve System that better represents the American economy, we urge you to lead a coordinated effort with the Federal Reserve Banks aimed at developing and adopting an updated search and selection process for Directors and Presidents at the Regional Banks.

While the Board of Governors only has a direct role in the selection of the Class C Directors, the Governors can, consistent with the Federal Reserve Act, set the process by which Class A and Class B Directors are selected. We are concerned that the current director and president selection process, which is only nominally transparent, allows and encourages the selection of Class A and Class B Directors who are not truly representative of the public. If the Board of Governors wants to increase diversity across the system’s leadership, it must change this process.

In order to promote more diverse outcomes, meaningful transparency and public engagement should be brought to the process for selecting Bank Presidents and Class B Directors. This should include, but is not limited to:

• Timely public notification of general selection criteria and estimated timeline.
• Opportunity for the public to submit comments on the overall process and suggest possible questions for the search committee to ask candidates.
• Timely publication of anonymized data regarding the racial, gender, and sectoral demographics of the candidate pool.
• Timely publication of anonymized information about the key questions the candidates are being asked and their responses to those questions.
• At least one public forum at which the search committee presents the above information and at which the public is allowed to present comments on the critical economic issues facing the region.

We respectfully request that you respond to this letter no later than July 22, 2022, describing in detail what steps, if any, you are taking to promote diverse outcomes and increase transparency in the director selection process.

We look forward to your responses and continuing our work with you to make the Federal Reserve System a more effective and representative institution.

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Source: United States Senator for Oklahoma James Lankford

06.22.22

CLICK HERE to watch Lankford’s opening statement on YouTube.

CLICK HERE to watch Lankford’s opening statement on Rumble.

WASHINGTON, DC –Senator James Lankford (R-OK) provided opening remarks during a Senate Finance Committee markup of the Enhancing American Retirement Now (EARN) Act, also known as SECURE 2.0. The bill includes Lankford’s Enhancing Emergency and Retirement Savings Act, Improving Access to Retirement Savings Act and Military Spouses Retirement Security Act. The bill passed the committee unanimously.

The Enhancing Emergency and Retirement Savings Act of 2021 would help Oklahoma families save for retirement and prepare for emergencies. The legislation would also encourage participation in retirement plans by giving individuals additional flexibility and penalty-free access to funds should a family emergency hit. The legislation would provide a penalty-free “emergency distribution” option from employer-sponsored retirement accounts and IRAs. One emergency distribution would be permitted per calendar year, and that distribution would be limited to vested amounts over $1,000, with an annual maximum withdrawal of $1,000. Additionally, the legislation requires that the individual replenish the withdrawn amount back to the plan before an additional emergency distribution from that same plan is allowed. Together, this will provide flexibility while also ensuring that individuals continue to save for retirement. 

The Military Spouses Retirement Security Act would help spouses of active duty service members save for retirement by expanding access to employer-sponsored retirement plans. Many American households struggle to save for their golden years. Spouses of active duty service members, however, face an additional hurdle to saving for retirement. According to the Department of Defense, about one-third of military service members experience a permanent change of station move every year. When service members move, their spouses often relocate with them, putting their own careers on hold. 

The Improving Access to Retirement Savings Act will allow more organizations to participate in multiple employer plans (MEPs) by allowing 403(b) plans, which are prevalent among tax-exempt organizations, to participate. It also clarifies that small employers that join an MEP may take the small employer pension plan start-up credit for their first three years in an MEP, regardless of how long the MEP has been in existence. It also allows a grace period to correct reasonable errors in administering automatic enrollment and escalation features when groups are enrolling in an MEP, provided they are corrected within nine and a half months of the end of the year in which the mistakes were made. Finally, it would provide employers additional time to make retroactive plan amendments that increase benefits for employees.

Transcript from Opening Statement

Mr. Chairman, Ranking Member, thank you for all the hard work of all your staff and your team. There’s a lot that has gone on behind the scenes on this to be able to help negotiate and navigate a lot of very complicated and technical language. I do appreciate the work of the teams and how well our staffs have worked together on these issues.

Retirement should not be a partisan issue. That is all Americans are trying to work towards a secure retirement. So, that’s a positive thing for us to be able to work together on it. One of the things I’ve been working extensively for the past year is trying to help folks with lower incomes start saving for retirement. That is a group of Americans that are looking towards Social Security to be able to meet their retirement needs and we all know Social Security will not meet their full retirement needs. They’ve got to have something else as well, but for a lot of folks on the lower end of the income spectrum for them to set aside money into retirement means that money is locked away. They can’t get to it then in case of emergency. So, we’ve worked through the process of trying to help find a way to be able to help those individuals that can save for retirement—even a little bit also get access to some of those funds in case of an emergency without having a penalty.

So, this is something that Senator Bennet and I have worked on extensively. Our staffs have worked together extensively on. We’ve gotten a lot technical assistance from the Administration. We also have nine different investment and retirement groups that have done extensive work with their members on this and have also recommended it and stand behind it. Mr. Chairman, I’d like for these letters of recommendation to be available in the record.

The simple principle is this—can an individual setting aside money for retirement be able to get access to $1,000 of what they have vested into their retirement fund without having the penalty and then once they repay that back over a three year time period, in case they have another emergency, they could get to that again in case of that ‘panic moment’ for them. Only four in 10 Americans can come up with $1,000 right now in case of an emergency. So, car breaks, air conditioner breaks, a refrigerator goes out, kid ends up in the hospital, whatever it may be getting access to $1,000 makes an enormous difference for a lot of families. So this encourages those individuals to save for retirement and also allows them in case of emergency to get access to those funds without having a penalty but still incentivizes them to go put that money back in their retirement because they’re going to need that in the days ahead.

So, that’s what we’ve worked together. We’ve had great cooperation on this for Senator Bennet and I. And we are grateful that it is included in the base bill today, and I look forward to being able to support this and any other good ideas.  

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Source: United States Senator for Rhode Island Sheldon Whitehouse

06.21.22

New law helps small businesses stay open and individuals keep their homes as they find their financial footing through bankruptcy

Senators Sheldon Whitehouse (D-RI), Dick Durbin (D-IL), Chuck Grassley (R-IA), and John Cornyn (R-TX) welcomed President Joe Biden’s signing of their bipartisan legislation to help small businesses and individuals stay afloat during bankruptcy.  The senators guided the bill through the Senate with unanimous support. 

“The bankruptcy process should help small businesses and working families to weather financial hardship and emerge stronger.  This new law will help them do that,” said Whitehouse.  “I’m gratified to see President Biden sign this bipartisan effort.  I was pleased to work with Senators Grassley, Durbin, and Cornyn to improve our bankruptcy process.”

“As American families and small businesses face mounting economic uncertainty amid historic inflation and spiking interest rates, it’s more important than ever that we remove hurdles to reorganizing when folks fall on hard times.  Our bipartisan bill – now law – builds on my Small Business Reorganization Act in 2019 with Sen. Whitehouse to streamline the bankruptcy process for small businesses by eliminating onerous paperwork requirements designed for major corporations,” said Grassley.

“Too many mom-and-pop shops are getting caught up in a complicated bankruptcy system while working to get back on their feet,” said Durbin. “At the same time, many families are struggling with overwhelming levels of debt.  This bipartisan bill brings relief to both.  I’m grateful to my Senate colleagues for their partnership on this critical legislation, and applaud President Biden for acting swiftly to sign this into law—a testament to this Congress’s, and this Administration’s, commitment to supporting American businesses and families.”

“For small businesses and families who fought their way through the pandemic and are now facing economic hardship, our complicated bankruptcy process can be another barrier to survival,” said Cornyn.  “I’m glad we could come together on this reprieve from burdensome requirements, especially given record-high inflation and rising interest rates.”

Whitehouse and Grassley passed the Small Business Reorganization Act in 2019 to establish streamlined bankruptcy procedures that help small business owners keep their companies afloat and preserve jobs.  The CARES Act of 2020 temporarily allowed more small businesses to qualify for those streamlined procedures by increasing the upper debt limit for small businesses from $2.7 million to $7.5 million.  That increase expired on March 27, 2022. 

The legislation provides a two-year extension to the CARES Act increase to $7.5 million, and makes minor technical fixes to the Small Business Reorganization Act.  It also increases the debt limit for individuals to qualify for Chapter 13 bankruptcy for two years, allowing more individuals the opportunity to try to save their homes from foreclosure.  This increase addresses the concern that rising home prices and exploding student loan debt will push increasing numbers of individuals over the debt limit to qualify for Chapter 13 bankruptcy. 

Source: United States Senator for Pennsylvania Pat Toomey

Washington, D.C. – U.S. Senator Pat Toomey (R-Pa.) commended the Senate Finance Committee for advancing three of his bills as part of the Enhancing American Retirement Now (EARN) Act, the Committee’s comprehensive, bipartisan package of legislation that expands access to retirement resources and encourages saving for the future. Senator Toomey’s legislation—the Protecting Public Safety Employees’ Timely Retirement Act, State and Local Corrections Officer Retirement Fairness Act, and a compromise version of the Long-Term Care Affordability Act—will aid law enforcement, public safety officials, and individuals looking to plan for their futures by purchasing long-term care insurance.
“Saving for retirement reflects smart, long-term planning by American workers. I appreciate Senators Wyden and Crapo including in the EARN Act three bills I’ve authored that will enhance retirement security for many Americans: the Protecting Public Safety Employees’ Timely Retirement Act, the State and Local Corrections Officer Retirement Fairness Act, and an amended version of the Long-Term Care Affordability Act. I’d also like to thank Senator Bennet for his partnership on the Protecting Public Safety Employees’ Timely Retirement Act and the State and Local Corrections Officer Retirement Fairness Act,” said Senator Toomey.
Background on Senator Toomey’s bills:
The Protecting Public Safety Employees’ Timely Retirement Act amends the federal tax code so law enforcement officers can access their retirement funds penalty-free upon reaching retirement age. The tax code currently allows eligible law enforcement and public safety officers to withdraw from their retirement if they retire at or after the age of 50 due to the taxing nature of these jobs. However, federal officers are eligible for retirement prior to the age of 50 if they have completed 25 years of service. Under current law, when an officer retires prior to the age of 50 with 25 years of service, they are not allowed access to their retirement funds penalty free until the age of 59 ½, which is the age average Americans are able to withdraw from retirement accounts penalty free. Senator Michael Bennet (D-Colo.) introduced the Protecting Public Safety Employees’ Timely Retirement Act with Senator Toomey.
The State and Local Corrections Officer Retirement Fairness Act would require the federal tax code to treat state and local corrections officers the same as their federal counterparts by providing an exemption from a federal tax penalty imposed on early withdrawals from qualified retirement accounts. Due to the physically taxing nature of this profession, many officers retire prior to age 59 ½, which is the age in which individuals can withdraw from qualified retirement accounts without facing a 10 percent early withdrawal penalty. In 2015, Senators Toomey and Bennet introduced the Federal Public Safety Retirement Fairness Act, which made all federal law enforcement officers eligible for an exemption to the early withdrawal penalty. With the State and Local Corrections Officer Retirement Fairness Act, eligibility for this exemption would expand to include state and local corrections officers. Senator Bennet partnered with Senator Toomey to introduce the State and Local Corrections Officer Retirement Fairness Act.
Senator Toomey’s Long-Term Care Affordability Act as introduced would allow individuals to pay up to $2,500 each year for long-term care insurance with their 401(k), 403(b), and IRAs without a tax penalty. Retirement accounts give a tax benefit to workers who set aside money now for use during retirement. Early withdrawals from these accounts are generally treated as income and taxed accordingly and are also subject to an additional 10 percent tax on early distributions.
The Chairman’s mark includes a compromise version of the Long-Term Care Affordability Act. Under the Chairman’s mark, retirement plans are permitted to distribute up to $2,500 per year for the payment of premiums for certain specified long term care insurance contracts and such distributions would be exempt from the additional 10 percent tax on early distributions.