Lowey Statement at Committee Markup of 2015 Financial Services & General Government Appropriations Act

I’d like to thank Chairman Crenshaw and Ranking Member Serrano for their work on this bill, and the bipartisan spirit in which they work. 

Unfortunately, however, low allocations and policy riders in this bill fail to prioritize the middle class, create jobs, and provide opportunity for every citizen to succeed. Meanwhile this bill cuts already-reduced funding levels for regulatory agencies that protect the public and crack down on special interests who abuse the system.  

For our economy to succeed, investors must have faith that regulators do their jobs to protect consumers’ financial interests, especially at a time when we are finally recovering from the economic harm caused by risky industry practice. Yet this bill could put Mom and Pop investors and our entire economy at risk with inadequate funding authority for the SEC at $300 million below the request.  This is outrageous when you consider that the SEC’s funding does not take a dime of U.S. taxpayer dollars or impact the deficit or the debt because it is entirely fee funded. 

In the last fiscal year, due to budget constraints, the SEC examined only about 9% of registered investment advisers.  The number of investment advisers has increased by 40% over the past decade, and assets under management have more than doubled, and yet the SEC’s funding has not kept up with the need.  It’s clear this bill should do more to protect investors and ensure that industry does not resume practices that endanger Americans’ hard-earned money.

Cuts to the IRS budget by more than $340 million, to below Fiscal Year 2008 levels, would make it easier for tax cheats to go undetected and more difficult for law-abiding taxpayers to get assistance.  While we can all agree that recent events at IRS warrant further oversight, these cuts are excessive.

Other troublesome measures in this bill attempt to dictate local governance decisions for Washington, D.C, and prohibit implementation of health reforms that have given millions of Americans affordable health coverage for the first time. 

It is also full of riders that unnecessarily involve abortion, needle-exchanges, and even a denial of funds for DC voting rights.  If Congress imposed these demands on any other area of the country, and particularly areas represented by some of my Republican friends, I expect many would stringently criticize the federal government imposing on your way of life and in your local decisions.  These efforts are unfair to the citizens of Washington, D.C. 

There are some bright spots in this bill.  I appreciate the Chairman and Ranking Member supporting some of my longstanding priorities, including funding for the Small Business Administration business loan accounts, and increased funding for the Drug Free Communities and the High Intensity Drug Trafficking Areas Program, which are crucial as communities throughout the nation grapple with a heroin epidemic.  I hope that we can protect these investments and continue to improve this bill going forward.  Thank you.