Gina Raimondo Testifies In Senate Appropriations Cmte Hearing On Commerce Dept's FY25 Budget Request

5 months ago

Commerce Secretary Gina Raimondo testifies before the Senate Appropriations Committee.

Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:

https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript

Stay Connected
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter: http://www.twitter.com/forbes
Forbes Video on Instagram: http://instagram.com/forbes
More From Forbes: http://forbes.com

Transcript

00:00:00We have votes happening in the Senate.

00:00:03There are two votes.

00:00:04I think most of us have probably voted on the first one.

00:00:07We will take a break.

00:00:08We will continue the hearing and just take terms going to vote.

00:00:13So today we're delighted to welcome Secretary Raimondo

00:00:17to review the President's Fiscal Year 2025 Budget Request.

00:00:21Madam Secretary, it's great to see you again.

00:00:24We've got a lot of members signed up to be here,

00:00:28so I knew it was somebody important.

00:00:32So we're delighted.

00:00:35The Department of Commerce mission

00:00:36is to foster conditions for economic growth

00:00:38and opportunities for all communities.

00:00:41The President's 2025 request for the department

00:00:44is $11.5 billion, which is a 6% increase compared

00:00:48to fiscal year 2024 enacted.

00:00:51Unfortunately, like last year, we

00:00:54will need to contend with the tight fiscal restraints

00:00:56of the Fiscal Responsibility Act.

00:00:59And make no mistake about it, from my perspective,

00:01:03those caps have very real and harmful consequences,

00:01:07and they affect our abilities to deliver for the American

00:01:12people, both on the part of the committee and the department.

00:01:17Despite these headwinds, the subcommittee

00:01:19made targeted investments in fiscal year 24.

00:01:23Those include funding for NOAA to support our fishing

00:01:26communities, funding for the Bureau of Industry and Security

00:01:29to enforce export controls, funding for NIST

00:01:32to establish an artificial intelligence safety institute,

00:01:36and funding for NTIA to better serve states and territories

00:01:40in administering the bipartisan infrastructure law broadband

00:01:43programs.

00:01:45Now, despite the harsh budget environment,

00:01:47we also continue to support EDA's tech hubs program, which

00:01:51is one important way to better ensure

00:01:53the industries of the future and their good jobs

00:01:56start, grow, and remain in the United States.

00:01:59And with that in mind, I would be remiss

00:02:02if I didn't mention the incredible work that's

00:02:04being done in Manchester, New Hampshire,

00:02:07by Region Valley's tech hub.

00:02:10Through the Advanced Regenerative Manufacturing

00:02:13Institute, the secretary has been there, I know,

00:02:16and we appreciate her interest in what's happening there.

00:02:20But Region Valley embodies everything

00:02:22a tech hub should be.

00:02:24It's strong.

00:02:25It has regional collaboration.

00:02:27It has the potential to be a globally competitive center

00:02:30for innovation and biofabrication.

00:02:34Now, in many ways, the president's 2025 request

00:02:37builds on the investments that this committee made in 24.

00:02:41In particular, the budget proposes a $48 million

00:02:44increase for NIST's AI safety institute,

00:02:47a $32 million increase to bolster

00:02:50the Bureau of Industry and Security's export control

00:02:53efforts that are directed at countries

00:02:55like Russia and the People's Republic of China.

00:02:58However, in some ways, the budget represents a step back.

00:03:02I'm especially concerned about the proposal

00:03:04to cut critical coastal programs like Sea Grant, IOS, Fisheries

00:03:10Cooperative Research, and the National Oceans and Coastal

00:03:13Security Fund, all of which help protect communities

00:03:16in New Hampshire and around the country from coastal hazards,

00:03:19and they drive our regional economies.

00:03:22And in a state that has the shortest

00:03:24coastline of any state in the US,

00:03:26we can't afford to do anything that's

00:03:28going to further reduce the length of our coastline.

00:03:32So I know you had to make difficult choices because

00:03:34of the Fiscal Responsibility Act,

00:03:37and I do appreciate that you prioritized

00:03:39funding for the next generation of weather satellites.

00:03:43But the cuts to those ocean programs

00:03:47would really be devastating in New Hampshire

00:03:49and in so many states around the country.

00:03:52Zooming out from fiscal year 25, it's

00:03:56worth stressing that Congress has given the department

00:03:58tremendous responsibilities that extend

00:04:01beyond annual appropriations.

00:04:03Specifically, the bipartisan infrastructure law

00:04:07tasked NTIA with connecting every American

00:04:10to high-speed, reliable, and affordable internet.

00:04:13And the CHIPS Act tasked NIST with building

00:04:17a semiconductor supply chain and R&D ecosystem

00:04:21right here in the United States.

00:04:23So these are monumental undertakings,

00:04:26and I know that we're all eager to hear

00:04:29how the department is progressing on efforts

00:04:31to implement that legislation.

00:04:35And finally, given that we've just finished

00:04:39Public Service Recognition Week,

00:04:41I think it's really important to thank

00:04:43the more than 40,000 commerce employees

00:04:46for their work on behalf of the citizens of this country.

00:04:49Our job is to help ensure these public servants succeed.

00:04:53I know that's your interest as well, Madam Secretary,

00:04:57because doing that means that American workers

00:05:00and our American businesses will thrive.

00:05:02So again, thank you for being here, Madam Secretary.

00:05:05We very much look forward to your testimony,

00:05:07and I will turn it over to my partner

00:05:09on this committee, Senator Moran.

00:05:11Senator Sheehan, Chairman Sheehan, thank you.

00:05:13Thank you for convening our hearing.

00:05:15And Secretary Raimondo, I appreciate your presence here,

00:05:18and I'm interested in discussing with you

00:05:20the President's budget request

00:05:22for the U.S. Department of Commerce.

00:05:25As I hope you know, I value the recent investments

00:05:28the department has made in Kansas,

00:05:30including support for our advanced manufacturing

00:05:32and aviation sectors

00:05:34and equitably expanding high-speed Internet access

00:05:37across our state.

00:05:38I was pleased by the designation of Kansas City

00:05:40as a biotechnology tech hub,

00:05:43highlighting the concentration and expertise

00:05:46and research capabilities resources in the Kansas City region

00:05:51that's included in the animal health corridor.

00:05:54I've also appreciated the department's responsiveness

00:05:56to this subcommittee's interest in making certain

00:05:58that the CHIPS program is making investments

00:06:00in geographically diverse smaller semiconductor companies.

00:06:04I look forward to hearing from you

00:06:05about what work remains for the department

00:06:07to ensure the CHIPS program

00:06:09successfully brings semiconductor manufacturing

00:06:12back to the United States in a way

00:06:13that supports our national and our economic security.

00:06:17Discretionary budget, as the chairman said,

00:06:19requests a proposed $11.4 billion,

00:06:23which is 642, 6% above the enacted amount from last year.

00:06:28This budget also requests an additional $4 billion

00:06:31in mandatory funding for EDA's regional tech hub program.

00:06:35The budget also proposes to cut successful programs

00:06:39that have widespread congressional support.

00:06:44Department of Commerce has made investments

00:06:46to advance our nation's technological

00:06:49and manufacturing capacity,

00:06:50and we must make certain that through the appropriation

00:06:52process, even those that are so hugely important

00:06:56to our country and its future,

00:06:58we have to live within our fiscal responsibilities.

00:07:02Given those FRA caps, I suspect, as the chairman said,

00:07:05we're probably back in a similar position

00:07:07to where we were last year.

00:07:10The president's budget requests additional resources

00:07:14for a variety of new and expanded programs,

00:07:17which are well-intentioned but are not accompanied

00:07:19with any offsetting costs

00:07:20in any other perhaps well-intentioned programs.

00:07:25If there are fewer resources available to confront China,

00:07:29that would be a significant challenge,

00:07:30I believe, for our country

00:07:32and something that I have great concern about.

00:07:35I need to see that we have, in confronting China,

00:07:38that we have effective export controls

00:07:41and that we safeguard our intellectual property.

00:07:44I know that's something that you support,

00:07:46and I appreciate that.

00:07:47I also highlight support for weather laboratories

00:07:50and hydrological forecasts

00:07:52that are important to farmers and ranchers,

00:07:54in fact, agriculture across, in my state,

00:07:56but agriculture across the country.

00:07:59I always worry about regulations.

00:08:02We need to support common-sense rules

00:08:03that protect our domestic industries.

00:08:06Even well-intentioned regulations

00:08:07often have unexpected consequences,

00:08:09so we need to have a fair and open mind

00:08:11when crafting rules that impact U.S. jobs.

00:08:14Madam Secretary, I look forward

00:08:15to continuing our positive working relationship.

00:08:18I hope that the final appropriation product

00:08:21will be fiscally responsible

00:08:22while safeguarding our supply chain.

00:08:25As I say this, I smile.

00:08:26We want to have this, a balanced budget.

00:08:28We want to have this,

00:08:30programs that are important to the country,

00:08:32and it is a challenge that we face.

00:08:34But we need a fiscally responsible product

00:08:36while safeguarding our supply chains,

00:08:39combating nefarious foreign actors,

00:08:40and advancing our national and economic security.

00:08:43And again, thank you for being here today.

00:08:46Thank you, Senator Moran.

00:08:48Secretary Raimondo, the floor is yours.

00:08:51Yes, good afternoon, and thank you for having me,

00:08:53and thank you, both Chairwoman and Ranking Member.

00:08:56I've appreciated the collaboration

00:08:58and partnership that we have had.

00:09:00And to all the members of the subcommittee,

00:09:02thank you for this opportunity to be with you

00:09:05to discuss President Biden's fiscal 25 budget request

00:09:09for the Department of Commerce.

00:09:12As Senator Shaheen said,

00:09:14the Commerce Department has continued

00:09:16to implement major initiatives authored by Congress

00:09:20through the Infrastructure Investment and Jobs Act,

00:09:23the Inflation Reduction Act, and the Chips and Science Act.

00:09:26And thanks to these laws and the funding you've provided,

00:09:29we're tackling our nation's most pressing

00:09:31economic and national security priorities.

00:09:35And I would argue doing more than any Commerce Department

00:09:37has done in the past.

00:09:38So I wanna thank you for that.

00:09:41As Senator Moran said,

00:09:44the budget requests $11.4 billion in discretionary funding,

00:09:47and $4 billion in mandatory funding for FY25.

00:09:52And I'm here to ask you to support that funding,

00:09:55and happy to take your questions and get into the details.

00:09:58I'd just like to highlight a few of our priorities.

00:10:01First, the budget positions America to prevent China

00:10:05and other countries from obtaining U.S. technology,

00:10:08U.S. capital, and U.S. expertise for their activities

00:10:11that would threaten our national security.

00:10:14To that end, the budget requests a total of $223 million,

00:10:19which is a $32 million increase for BIS

00:10:24to expand our export control enforcement.

00:10:27That budget's been flatlined for two years,

00:10:30and so we're respectfully requesting an increase

00:10:32so we can protect our technology

00:10:34from getting into the hands of China's military.

00:10:37Second, the budget promotes America's technological

00:10:41leadership and responsible innovation

00:10:43in artificial intelligence.

00:10:46To that end, the budget requests an additional $61.6 million

00:10:51for research and development,

00:10:53to develop the safety standards and evaluation

00:10:59for AI.

00:11:01These funds will empower NIST to implement

00:11:04central components of President Biden's executive order

00:11:07on AI, including establishing with $30 million

00:11:11the AI Safety Institute,

00:11:13which I know a number of you are focused on.

00:11:17The budget also funds a new AI and Emerging Technologies

00:11:20Policy Lab at NTIA to assess the impacts of AI technology

00:11:26and develop policy recommendations.

00:11:28The budget also supports resilient supply chains.

00:11:33We need to go from being purely reactive

00:11:36to supply chain disruptions to being more proactive,

00:11:39to predict disruption to supply chains before they happen.

00:11:43To that end, the budget includes an increase

00:11:46of $12 million for ITA to support supply chain resiliency

00:11:52and the continued work

00:11:54of our newly created Supply Chain Office.

00:11:57It also includes $37 million

00:11:59for NIST's Manufacturing USA program

00:12:03and $175 million for NIST's

00:12:06Manufacturing Extension Partnership.

00:12:10The budget also provides resources

00:12:12to strengthen our relationships with our allies,

00:12:15to advance our shared values

00:12:17and shape the strategic environment in which China operates.

00:12:21To out-compete China,

00:12:23we need to show up in the rest of the world.

00:12:26Therefore, our budget includes $379 million

00:12:30for ITA to expand U.S. exports and services

00:12:34that will help U.S. businesses to grow

00:12:37and expand in foreign markets.

00:12:40The budget also invests in good jobs and equitable growth.

00:12:44The budget requests $4 billion in mandatory funding

00:12:48and $523 million in discretionary funding for EDA

00:12:53to execute on the objectives of the Tech Hubs program,

00:12:57which both of you mentioned,

00:12:58and to build out the Good Jobs Challenge,

00:13:01Commerce's signature job training initiative,

00:13:04and to foster geographic diversity in innovation.

00:13:09Excuse me.

00:13:09Additionally, the budget invests $80 million in MBDA

00:13:14to bolster the services it provides

00:13:16to socially and economically disadvantaged

00:13:19business enterprises

00:13:21through a network of 131 centers around the country

00:13:25that serve every state and territory in the U.S.

00:13:30Importantly, the budget prioritizes investments

00:13:33to address climate change.

00:13:35Specifically, the budget includes $6.5 billion for NOAA,

00:13:40including $2.1 billion

00:13:42for the nation's weather and climate satellites,

00:13:46$1.4 billion for the National Weather Service,

00:13:49and $212 million for climate research.

00:13:53It provides $53 million to expand offshore wind permitting

00:13:57and $86 million to support the National Marine Sanctuaries

00:14:01and marine protected areas.

00:14:04Finally, the budget invests

00:14:06in our fundamental science infrastructure,

00:14:09invests over $400 million in research infrastructure

00:14:14at NIST and NOAA and NTIA.

00:14:17This includes funds for maintenance, renovations,

00:14:20and improvements on NIST campuses,

00:14:23which I would invite any of you to come visit

00:14:25and you will see readily how desperately we need the capital

00:14:28for this maintenance.

00:14:31It's a tough budget, as has been said.

00:14:34We were faced with difficult decisions

00:14:35and so we had to prioritize and we prioritized in capital

00:14:40and investments that we think are the most essential

00:14:43to meet our mission and quite frankly,

00:14:45to save lives and protect lives in America.

00:14:48So in closing, I would say that everything we do

00:14:51at the Commerce Department is focused

00:14:53on strengthening America's competitiveness at home

00:14:57and abroad so that American workers and families

00:15:01and businesses of all sizes in every state can participate

00:15:05and prosper in the 21st century global economy.

00:15:08And I'm here because I need your support.

00:15:11I wanna work with you.

00:15:12I need your support to ensure that our resources

00:15:15enable us to meet the mission of creating the conditions

00:15:19for economic growth and opportunity for all communities

00:15:23in every state in America.

00:15:25So I look forward to talking to you now

00:15:27and of course, more important, I look forward

00:15:29to continuing to work with you as we do this work together.

00:15:34Thank you very much, Madam Secretary.

00:15:36We'll begin our rounds of questioning.

00:15:39Senator Moran and I will begin

00:15:42and we're gonna take members in order of arrival

00:15:44and because we expect to have a number of senators here,

00:15:47I would urge everyone to try and stick

00:15:49within the five minute round of questioning.

00:15:52So, Secretary Raimondo, last year,

00:15:55NTIA announced state allocations for the BEAD program.

00:15:59BEAD, as we know, was enacted as part

00:16:02of the bipartisan infrastructure law.

00:16:04We had a number of late night conversations talking

00:16:06about how to structure this in a way that made sense,

00:16:09that could get through the Congress.

00:16:12It's provided $42 billion for the program

00:16:15in the infrastructure law.

00:16:18Now, by December of last year,

00:16:19all states submitted their initial proposals

00:16:22detailing how they plan to spend their BEAD allocation

00:16:25to deliver high speed internet access

00:16:27to everyone who is not served.

00:16:30So can you give us an update on how this is going?

00:16:34How are the review of state plans doing?

00:16:37Are some states drawing down funds

00:16:38from their allocations already?

00:16:42What's the status?

00:16:43Yes, thank you.

00:16:44So this is, as you said, this is an unbelievable program.

00:16:48We've never done anything like this before.

00:16:50In the past, when Congress allocates money

00:16:52to do broadband build outs,

00:16:54it's very targeted in a particular area.

00:16:57My job now is to connect every American.

00:17:00It's a historic opportunity and we're taking it seriously.

00:17:03Where are we?

00:17:05Every state has received a planning grant

00:17:08and they're all hard at work doing that.

00:17:10The way we've structured the program

00:17:11is that each state has to provide us with their plan.

00:17:16Louisiana's different than Kansas,

00:17:17different than New Hampshire.

00:17:18We want to meet the needs,

00:17:19working with your governors to do that.

00:17:22New Hampshire has just shived $200 million.

00:17:26You have had your first volume approved

00:17:31and we're now working with the governor and the team

00:17:33to approve the second volume.

00:17:35A handful of states, including Louisiana,

00:17:40have gone fully through the process,

00:17:42have had their full approval

00:17:44and are about to receive their money.

00:17:49My job is to get this,

00:17:50my goal is to get this all done by the end of this year.

00:17:53Every state, if not sooner.

00:17:55I want, I'm pushing the team really hard

00:17:57to make sure we're working collaboratively with states

00:18:01so that every state has their plan approved

00:18:04and we start to get the money out this year.

00:18:07And I guess I'll just leave it at that.

00:18:09It's complicated because we can't do rate regulation,

00:18:12but we have to have an affordable plan.

00:18:16Rural communities, we're determined

00:18:19to make sure everybody is covered.

00:18:21So I meet with the team every week.

00:18:23We go through state by state and it's just execution.

00:18:27Well, thank you.

00:18:28And as you know, there's a lot of anticipation

00:18:31throughout the country.

00:18:32We see it in our state from communities,

00:18:36particularly in rural areas

00:18:38where they've not had access to high-speed internet

00:18:40and they're really looking forward to it.

00:18:42But one of the challenges we have

00:18:44is that it needs to be affordable also.

00:18:48People need to be able to connect in.

00:18:50And we had a program, the American Connectivity Program,

00:18:54which is not run by the Commerce Department, as you know.

00:18:57But that is expiring

00:19:01and it's gonna mean that there are a number of folks

00:19:04who, even when they may have access to the internet,

00:19:09are not gonna be able to afford it.

00:19:11Can you speak to the importance of Congress acting

00:19:14to do the follow-on to the ACP program

00:19:17so that we can actually make sure

00:19:20that households can get connected

00:19:22once the high-speed internet is built out?

00:19:24Yes, it is absolutely essential.

00:19:27I cannot underscore that enough.

00:19:30If you believe, as the president does, as I do,

00:19:33that in today's day and age, the internet isn't a luxury.

00:19:37It's a necessity to see the doctor, collect benefits,

00:19:41do anything online, apply for a job.

00:19:44Folks need it and deserve it in their home,

00:19:46in their office, in their school.

00:19:48And quite frankly, $100 a month is not affordable.

00:19:52So if it's 100, and I pick that number,

00:19:53sometimes it's $200 a month.

00:19:55I've been all over America, in all of your states.

00:19:59I've talked to rural dwellers.

00:20:00They tell me, hey, Secretary, I pay 200 bucks a month

00:20:03for satellite service, and when the weather is bad,

00:20:06it goes out.

00:20:08That is not meeting the mission.

00:20:09The legislation says affordable and accessible.

00:20:13Even if we were to get providers to provide it,

00:20:17for example, $60 a month, $50 a month,

00:20:21that's still unaffordable for low-income Americans.

00:20:24So the $30 a month ACP initiative

00:20:28is like life-saving, quite literally.

00:20:33And I cannot emphasize enough how important it is

00:20:37for you to renew that program.

00:20:39Well, thank you.

00:20:40I certainly agree with that,

00:20:42and there are several pieces of legislation

00:20:45that would do that.

00:20:46Hopefully we can act on that

00:20:47before the end of this session.

00:20:49Senator Moran.

00:20:52Sure, and thank you.

00:20:54Madam Secretary, let me pick up on the topic

00:20:56that you and the chairwoman are talking about.

00:21:00The law prohibits rate regulation,

00:21:03but you support affordability.

00:21:06How do those two things not clash with each other?

00:21:10We've had some complaints by stakeholders

00:21:13that you're pressuring states

00:21:16in regard to what they'd call rate regulation.

00:21:18I assume under the, this is not intended to be pejorative,

00:21:21but the guise of affordability,

00:21:24how do you mesh the prohibition

00:21:26with the insistence that it be affordable?

00:21:29So this, you know, the law, the statute says

00:21:35every state has to provide a low-cost option.

00:21:40That is in the law.

00:21:42Statute also says no rate regulation.

00:21:46So we are doing the best to meet the intent of the law,

00:21:51which is to, rate regulation would be,

00:21:55in my judgment, Kansas, you're not gonna get approved

00:21:57unless you show us a $30 a month plan.

00:21:59We are not doing that.

00:22:01We are decidedly not engaging in rate regulation.

00:22:05Law says we can't, and I won't, and I'm on top of that.

00:22:08That being said, I'm also required

00:22:11to make sure every state has a low-cost option.

00:22:14So we're building in flexibility

00:22:16to work with the states, state by state,

00:22:20recognizing that in certain states that are very rural,

00:22:24it's more expensive to provide that,

00:22:26and it's working with stakeholders,

00:22:29listening to governors, listening to people on the ground

00:22:31to make sure that we find that balance

00:22:34between affordability but not regulating.

00:22:38And by the way, back to what Senator Shaheen was saying,

00:22:40the $30 a month ACP is essential for this

00:22:45because in a state like yours, which is highly rural,

00:22:47it's very expensive to lay fiber,

00:22:50hypothetically, maybe $65, $70 is as low as it can go.

00:22:57That's very expensive for the average American family,

00:22:59and so the $30 a month support is essential.

00:23:04So anyway, long-winded way of saying that's the balance,

00:23:08and I talk to the governors, stakeholders,

00:23:11telecom providers every week

00:23:13to make sure we're striking the right balance.

00:23:16The support that the various programs,

00:23:18in this case the BEAD program provides,

00:23:20in this case to states, it subsidizes,

00:23:24it assists in the providing of the service,

00:23:29giving the incentive for companies to provide the service.

00:23:33It doesn't incentivize the $30 a month plan.

00:23:36That's a question, not a statement, but it's true, right?

00:23:38True, correct.

00:23:40So it is a clash of competing goals.

00:23:45We have to do both.

00:23:47We have to do both.

00:23:49It has to be accessible to everyone and affordable.

00:23:52Let me change topics.

00:23:54I'm concerned about China.

00:23:56One of them, I think perhaps it's known,

00:23:58but I would highlight the role

00:24:01that the U.S. Department of Commerce plays

00:24:04in our national security, our national economic security,

00:24:06our national defense.

00:24:10China is so aggressive in pursuing trade deals

00:24:13around the world.

00:24:16They always seem to be at our expense.

00:24:19China offers other nations better market access

00:24:21for their products and continues to build economic ties

00:24:24with critical partners and our potential adversaries.

00:24:29What can the department and ITA do

00:24:32to expand commercial services around the world?

00:24:37Again, China has offices everywhere.

00:24:39How are we competing with China?

00:24:42As I said in my opening testimony,

00:24:45we've asked for additional funds

00:24:47for $4 million additional increase for ITA

00:24:53to help us compete with China.

00:24:55We're asking for additional funds

00:24:57for more export promotion.

00:25:01In my tenure, I've launched several initiatives

00:25:04around export promotion,

00:25:06particularly helping small and medium-sized companies

00:25:09to do exports.

00:25:12We're launching new digital tools

00:25:14to help small companies with export promotion.

00:25:19So we have to promote more, and we are doing more,

00:25:22and we're trying to focus it sector by sector.

00:25:25But also, quite frankly, we need to do everything we can

00:25:27with countervailing duties and such

00:25:31to make sure that we have a level playing field

00:25:33so that China can't take advantage

00:25:35of U.S. businesses and workers.

00:25:38So you're one of the few people that I know

00:25:41that has negotiated with the Chinese

00:25:43with the highest level of government officials in China.

00:25:47You have any, can you tell us what potential exists

00:25:52for some kind of agreement with China

00:25:55to diminish the challenges we face

00:25:58that they're presenting us?

00:26:01Is there a path forward that provides hope

00:26:02instead of just adversarial relationships?

00:26:06Yeah, I'm smiling because I have 15 seconds,

00:26:09and that's a tough one.

00:26:10Look, let me say this.

00:26:11I get another round.

00:26:12Let me say this.

00:26:14The president has directed us, I think very correctly,

00:26:18to never negotiate on national security.

00:26:21In fact, when I have met with my Chinese counterparts

00:26:25numerous times, the premier and the vice premier,

00:26:27I have said, on matters of national security,

00:26:30we respectfully refuse to negotiate.

00:26:33And they have asked for us to.

00:26:34They have said, set boundaries around,

00:26:37tell us what's in and out of bounds.

00:26:38And I've said, no, I can't.

00:26:40It changes based upon the threat assessment.

00:26:43Having said that, the president has also directed us

00:26:46to deescalate, to communicate,

00:26:50and to, as he would say, turn down the temperature.

00:26:55So what I try to do, Senator, is promote where we can.

00:26:59For instance, I've started an export promotion initiative

00:27:03around health and beauty products.

00:27:05Has nothing to do with national security.

00:27:07Creates jobs in the United States.

00:27:09Keeps a line of communication open.

00:27:12We have to promote where we can, work with them where we can,

00:27:16zealously advocate for U.S. businesses, which I do,

00:27:19because right now they mistreat many U.S. businesses,

00:27:23but never negotiate on national security.

00:27:26And I think that there's, I think my judgment

00:27:30is being practical, not fiery in the rhetoric,

00:27:34and just try to stand firm, but talk when and where we can.

00:27:40Thank you.

00:27:41Senator Schatz.

00:27:43Thank you, Chair, Ranking Member.

00:27:44Thank you, Secretary.

00:27:46First, I want to talk to you about housing.

00:27:48And if you'll permit me a wind up here,

00:27:53this is one of the only areas

00:27:55where the government creates a shortage

00:27:59and then sort of strokes its chin,

00:28:01wondering why there's not more of the thing

00:28:03that we all say we want.

00:28:04But it really is restrictive zoning,

00:28:10covenants, minimum lot size, parking requirements,

00:28:14and all of that, that has contributed mightily

00:28:17to our housing shortage.

00:28:19And as the Chair of Transportation and HUD,

00:28:20I want to fund all the programs.

00:28:22But the truth is, there's not enough federal funding

00:28:23in the world to deal with the throughput problem

00:28:27of states and counties making it almost impossible

00:28:29to build the thing that we say we all want.

00:28:32And I think you have some pretty good news

00:28:33to report in the Commerce Department along those lines

00:28:36to try to make sure that when we think

00:28:38about economic development in a region,

00:28:41that housing is integral to a place thriving,

00:28:44or in some instances, recovering.

00:28:47And I'd like you to talk a little bit

00:28:48about what you're doing to kind of infuse

00:28:50a housing thought process

00:28:53into your economic development strategies.

00:28:55Actually, that's a perfect way to say it.

00:28:58And as I have said to you,

00:29:01you have helped us to focus on the issue,

00:29:05and I appreciate that.

00:29:07To that end, with EDA, for example,

00:29:09now as a new matter of practice,

00:29:13when we are putting out our applications

00:29:15to applicants for local economic development,

00:29:18we are proactively asking them for the first time

00:29:21to show us what are their plans for housing.

00:29:25How would they think about using our grant

00:29:28for this economic development

00:29:30in a way that stimulates housing?

00:29:31The same thing with CHIPS, the CHIPS applicants.

00:29:34I was recently out in Arizona.

00:29:36I mean, it's exciting,

00:29:38because the amount of jobs we're gonna be creating

00:29:40are tens upon tens of thousands,

00:29:42but we're asking the companies,

00:29:44how are you thinking about housing?

00:29:46Asking the governors and mayors,

00:29:47how are you thinking about housing?

00:29:49So I think it's very much what you just said.

00:29:53You know, look, for what it's worth,

00:29:55as a governor, I lived the local challenges,

00:29:58and it is exactly as you say,

00:30:00and a lot of those fights, if you will,

00:30:03whether it's zoning or permitting or density requirements

00:30:08are done on a local level.

00:30:10But anyway, we are considering policies

00:30:12that expand housing supply in everything that we do at EDA,

00:30:17and I think that's a great step forward.

00:30:20It's great, and it's so logical

00:30:21that it seems like something

00:30:22that should have been done a long time ago.

00:30:23You can't have economic development

00:30:25without housing supply for the workers.

00:30:27If you're imagining an area expanding,

00:30:28it doesn't happen organically.

00:30:30It has to be planned and permitted and financed

00:30:32and then constructed and then plugged into a grid

00:30:35and all the rest of it.

00:30:36So thank you for doing that.

00:30:37Please do as much as you can in this area,

00:30:42and we'll support you.

00:30:44On a sort of less of a love fest question here,

00:30:49the NOAA budget, as it's proposed by the president,

00:30:57does a fair amount of damage to oceans here.

00:31:01And a 45% cut to NOAA's Ocean Exploration Program,

00:31:09a 42% cut to NOAA's Coral Program,

00:31:12a 10.3% cut to Sea Grant,

00:31:16and zeroing out Senator Shaheen

00:31:19and White House's National Ocean Security Fund.

00:31:22And I'm just, I'm trying to make sense of this

00:31:24because I understand the constraints of the FRA,

00:31:29but these are disproportionate cuts in the ocean space,

00:31:31and I'm wondering what the theory of the case is here.

00:31:35The theory of the case is,

00:31:38I think those cuts stink, to be candid,

00:31:43but it's a really tough top line

00:31:46that we've had, so we had to go through it

00:31:47and say, what must we fund?

00:31:50And we chose to prioritize the weather satellites,

00:31:54which are quite expensive.

00:31:59$334 million additional for weather satellites

00:32:04to bring it to a total of two billion,

00:32:07because we know that our weather predictions

00:32:11are a matter of life and death, quite literally.

00:32:15I will say, you know, look, I come from the ocean state,

00:32:19these are tough cuts, we have,

00:32:21I've directed the department, wherever possible,

00:32:24to use infrastructure law monies

00:32:28and IRA monies to make up for these shortages,

00:32:34would work with you or Senator Shaheen,

00:32:36Senator White House, to try to do our best to be creative,

00:32:41but in the face of difficult choices,

00:32:44that's how we chose to prioritize.

00:32:50Senator Kennedy.

00:32:52Thank you, Madam Chair, Madam Secretary, welcome.

00:32:57I wanna talk for a moment about seafood.

00:32:59The American people love seafood, as you know.

00:33:04We consume about seven billion pounds a year,

00:33:0921 pounds for every man, woman, and child in our country.

00:33:15Do you happen to know what percentage

00:33:17of the seafood that we eat is imported?

00:33:22I do not.

00:33:23It's about 94%.

00:33:28Your agency is in charge of inspecting

00:33:32this imported seafood, as you know.

00:33:36Do you happen to know what percentage

00:33:40of that 94% that we import is inspected by your agency?

00:33:47I don't.

00:33:48Yeah, it's about 1%.

00:33:50Yes, it's small, yeah.

00:33:52And of that 1% that your agency inspects,

00:33:57it finds something wrong with about a third.

00:34:01Let's take crawfish from China, or shrimp from India.

00:34:10These countries compete with American producers.

00:34:15These countries subsidize their seafood producers.

00:34:20We don't.

00:34:22These countries allow their producers

00:34:28to ignore quotas.

00:34:33These countries allow their producers

00:34:36to ignore where they're supposed to fish.

00:34:44But the worst thing these countries do,

00:34:47they don't abide by environmental regulations.

00:34:53They shoot their products at the fish.

00:34:56They shoot their products full of antibiotics.

00:35:01If you eat enough shrimp from India,

00:35:06you will grow an extra ear.

00:35:12They also engage in false advertising.

00:35:16No one needs an extra ear, Madam Secretary.

00:35:20For example, this is Chinese crawfish.

00:35:26Because of the way they produce it,

00:35:29horrible, horrible environmental condition.

00:35:32And because the government subsidizes it,

00:35:35they can sell it for eight bucks, this.

00:35:38Where in America, it costs 14 bucks.

00:35:40But look how they do it.

00:35:42The Chinese call it Boudreaux's brand

00:35:46of crawfish tail meat, wild caught.

00:35:50I don't know anybody in China named Boudreaux.

00:35:55Okay?

00:35:56Something's gotta be done, Madam Secretary.

00:36:00I mean, the people at your seafood import monitoring program

00:36:04are wonderful people.

00:36:07But all this product is coming in.

00:36:10And it's harmful.

00:36:12And it costs us jobs.

00:36:15Would you share some of your thoughts with me?

00:36:17Yeah, so let me say a few things.

00:36:21First of all, I appreciate the,

00:36:22I really appreciate your comment.

00:36:25And it's clear we can do more.

00:36:26And I wanna work with you to do more.

00:36:29We are extremely focused on

00:36:34transshipment of fish support,

00:36:38from China through Vietnam to the U.S.,

00:36:41which is why we impose a countervailing duty on that.

00:36:44We're trying to add the duty wherever we can,

00:36:48even if it goes from China to another country,

00:36:51Malaysia, Vietnam, to the United States.

00:36:55We're very focused on illegal fishing,

00:36:58unregulated fishing, also mostly done by China.

00:37:02Very focused on that, working with CBP on that.

00:37:06But there's, so I share, like I share the concern.

00:37:09It's unfair to American workers.

00:37:10It's unfair to American fisheries.

00:37:12It's unsafe, as you say.

00:37:14And we don't need extra ears.

00:37:16I mean, this stuff is dangerous.

00:37:19Yeah, so we have to do more.

00:37:21And I'll commit to doing more.

00:37:23Last question, I wanna follow up

00:37:25on my friend Senator Moran's questions.

00:37:29You're right that the Infrastructure Act

00:37:31says your agency can't set broadband prices.

00:37:37But I keep getting reports that you are.

00:37:41For example, I'm not gonna tell you who gave this to me,

00:37:48but in Virginia,

00:37:51when you're negotiating the Virginia plan,

00:37:54your agency required Virginia to have a preset

00:37:59or predeterminable price certain as a condition

00:38:04to receive any BEED funding.

00:38:08So it sounds to me like, at least in Virginia,

00:38:10the allegation is that your people are setting a price.

00:38:14And I keep hearing this in other states, too.

00:38:16We are not.

00:38:17And if you hear it, you should call me,

00:38:20because we're not, it's not what the law says,

00:38:22and we aren't doing it.

00:38:23And your state, by the way, has done a fantastic job

00:38:25and was, I think, the very first state to be approved

00:38:28and will be the first state to get their money.

00:38:30The fact of the matter is,

00:38:32Alaska is very different than Louisiana.

00:38:35I can't say what's affordable and low cost

00:38:38in Alaska versus Louisiana.

00:38:40It's just, it's different.

00:38:41So we're allowing for flexibility,

00:38:44and we're working in an iterative fashion with states

00:38:47to make sure it's low cost.

00:38:50But we're not telling them what low cost is in their state.

00:38:54It's a balance.

00:38:55And like I said, I'm pretty hands-on in this.

00:38:59And if you have concerns about these states,

00:39:02I'm happy to talk to you.

00:39:04Thank you.

00:39:05Thank you, Senator Kennedy.

00:39:06I hope you will provide the committee

00:39:08with the explanation of how it is

00:39:11that the seafood promotes the growth of a third year.

00:39:17I will.

00:39:18Because I find that very interesting.

00:39:21Senator People.

00:39:21A couple extra fingers, too.

00:39:23It's the antibiotics.

00:39:25If you eat enough of the stuff,

00:39:27you become antibiotic resistant.

00:39:32In addition to the extra ear.

00:39:36Although there are some people, I think,

00:39:38could use an extra ear.

00:39:39That's true.

00:39:40So that they could listen a little better,

00:39:41but, Senator Heinrich.

00:39:44I have no comment on any of that.

00:39:47Thank you.

00:39:49Madam Chair, I think Senator Peters might be next.

00:39:54But if you want me to go now, I'm happy to do that.

00:39:55Senator Peters, if you were here before Senator Heinrich,

00:39:57you should definitely go next.

00:40:02Thank you, thank you, Senator.

00:40:04Thank you, Madam Chair.

00:40:05Secretary Raimondo, I certainly thank you.

00:40:07Good to see you again, as always.

00:40:09Thank you for your testimony.

00:40:11You know, earlier this year,

00:40:12I called on your department and this administration

00:40:16to do more to combat the economic

00:40:18and national security threat posed

00:40:19by Chinese-made electric vehicles.

00:40:23I believe that we must ensure that the EV industry

00:40:26is built in the United States and in Michigan

00:40:29to create and protect good-paying union jobs

00:40:32for Michiganders,

00:40:33but also ensure that U.S. manufacturing remains strong

00:40:36and competitive against the Chinese.

00:40:39And that's why I applaud the trade representative's

00:40:41announcement yesterday that your department

00:40:44will quadruple tariffs on Chinese-made vehicles

00:40:48to combat unfair trade practices

00:40:50and protect American competitiveness.

00:40:53Increasing Section 301 tariffs on Chinese-made products

00:40:56is certainly a step in the right direction.

00:41:00But my question for you, ma'am,

00:41:01is what is the department preparing to do

00:41:03to prevent tariff evasion by Chinese companies?

00:41:08We know that some Chinese automakers

00:41:10are pursuing footprints in Mexico and in Europe,

00:41:15and we must ensure that we don't allow those actors

00:41:18to evade rules meant to create a level playing field.

00:41:22So how is the department taking this into account

00:41:26in its enforcement strategy

00:41:27for what I think is the right thing to do

00:41:30but we have to be able to enforce?

00:41:32I couldn't agree more.

00:41:33So let me first say this.

00:41:35First of all, thank you for your push,

00:41:37persistent push on this.

00:41:41In, I think Europe provides a cautionary tale

00:41:45because there were no tariffs,

00:41:47and before you knew it, China went quite quickly

00:41:50from zero to 25% market share in Europe of their EVs

00:41:55because of China's distortative practices

00:41:59in keeping the price low.

00:42:01So the reason that we, President, took this action

00:42:04to put a 100% tariff is so that that doesn't happen to us.

00:42:10And we, I was proud of the President to do that

00:42:14because I think it's necessary to protect our market

00:42:17and protect our workers.

00:42:19Now, you point out another extremely important issue

00:42:21because of USMCA, cars made in Mexico,

00:42:26it's a risk that we worry about.

00:42:28I can tell you, obviously, this is within

00:42:31the USTR's purview, not really my purview,

00:42:33with three-on-one tariffs, the USTR,

00:42:36working very closely with Customs and Border Patrol.

00:42:38We are very focused on this risk.

00:42:41We are worried about this.

00:42:43We know, we know, we have public reports

00:42:46that Chinese companies are setting up shop in Mexico.

00:42:51So we're tracking it.

00:42:52What the Commerce Department is doing

00:42:54is helping USTR by providing industry analysis and such.

00:43:00And I can just tell you that the purpose of USMCA

00:43:05was not to help China.

00:43:07It was to help the trade pact

00:43:09with the signatories of that agreement.

00:43:11And we're gonna do whatever we need to do

00:43:13to make sure China doesn't use Mexico

00:43:15to end around these new tariffs.

00:43:18I appreciate that.

00:43:18And I appreciate the President's strong action.

00:43:20He's always fought for American jobs.

00:43:22And this is a prime example of the President taking action.

00:43:27The, Secretary, you know, the CCP-backed vehicles,

00:43:30however, don't just pose a threat,

00:43:32an economic threat to the United States.

00:43:35They also threat a real security threat

00:43:38as well to our nation.

00:43:38We can't allow the CCP to deploy the same playbook

00:43:42we saw with telecommunications equipment,

00:43:44such as Huawei and ZTE, when they flooded the US market

00:43:48and created espionage and sabotage threat.

00:43:51Your department recently announced an investigation

00:43:54into the national security concerns

00:43:56of Chinese connected vehicles.

00:43:58And I have urged you to use this investigation

00:44:01to take a closer look at the CCP-backed automobiles.

00:44:05Now, I realize you can't share all.

00:44:09This is not a classified setting.

00:44:11But I would like you to discuss some of your concerns

00:44:13regarding connected vehicles from China

00:44:16and when we can expect a proposed rule from commerce

00:44:21on Chinese connected vehicles.

00:44:23Yeah, the comment period just closed.

00:44:27And we expect to have the rule out this fall.

00:44:31We received significant comments

00:44:33that we have to go through.

00:44:34Look, I would say the national security risks

00:44:37are quite significant.

00:44:40If you think about these connected vehicles,

00:44:43they have thousands of sensors, thousands of chips.

00:44:46They're controlled by software,

00:44:48which is coming from Beijing

00:44:50in the case of Chinese-made cars.

00:44:53They know where the driver goes,

00:44:54what the driving patterns are,

00:44:56what you're saying in your car.

00:44:59It's a lot of data around U.S. persons

00:45:05that goes right back to Beijing.

00:45:07It's not totally different than the threat of TikTok,

00:45:11which Congress took action on,

00:45:14with the threat of cranes at U.S. ports.

00:45:1890 plus percent of cranes at U.S. ports are Chinese-made.

00:45:22Cranes are no longer steel.

00:45:24They are connected.

00:45:26So I think it falls into the broader category

00:45:29of all of these connected technologies

00:45:34which collect massive amounts of data on U.S. citizens,

00:45:38our children, our families, our military personnel, et cetera,

00:45:44all going back to Beijing.

00:45:45By the way, not to mention the fact that the software,

00:45:49I mean, you can imagine the most catastrophic outcome,

00:45:52theoretically, if you had a couple million cars on the road

00:45:56and the software were, what do you call it, disabled.

00:46:00Yeah, shut up.

00:46:01So in any event, I'll leave it at that

00:46:03in a non-classified setting,

00:46:04but we decided to take action

00:46:06because this is really serious stuff.

00:46:10We appreciate it.

00:46:11Thanks for your leadership.

00:46:12Thank you, Madam Chair.

00:46:13Thank you, Senator Peters.

00:46:14Senator Murkowski.

00:46:15Thank you, Madam Chair.

00:46:16And good to see you, Madam Secretary.

00:46:19Gonna stick with seafood here.

00:46:21And I wanna start with what I know you have been read

00:46:26into, but we are really getting concerned.

00:46:28As you know, fisheries disasters in and around Alaska,

00:46:33but in other parts of the country,

00:46:35and these disaster monies being held up.

00:46:39And right now, we're looking at literally,

00:46:42I mean, you can't describe it as anything

00:46:44other than a massive backlog.

00:46:46And it relates to this new business applications solutions,

00:46:52getting the payments out to NOAA employees,

00:46:56to the vendors, the partners.

00:46:58It has been a technical issue

00:47:02that you're starting a new system,

00:47:04but you started it with a program

00:47:07where you have people that are so vulnerable

00:47:10and have waited so long.

00:47:12I mean, in Alaska, and I don't know

00:47:14whether it's in other states, probably in the chairmen's,

00:47:17but we're looking at fisheries disasters

00:47:20that were declared back in 2019.

00:47:22And these people still have yet to receive

00:47:26their disaster funding.

00:47:27It's really outrageous.

00:47:29So can you share with the committee where you are,

00:47:33what you're doing to address these failures,

00:47:35when we can expect this system to be operational?

00:47:39I don't know if we can call it fully functional,

00:47:42but at least operational.

00:47:43We gotta help these folks.

00:47:45Yeah, so first of all, I agree with you.

00:47:47And I know how serious it is.

00:47:49I really do.

00:47:50I've spoken to you.

00:47:51I've spoken to other members.

00:47:52I've spoken to fishermen myself in Alaska.

00:47:55And I want you to know, I don't take it lightly.

00:48:01The fishery disaster assistance

00:48:04has candidly never been a fast process.

00:48:07It's been awful.

00:48:08Yeah, for like ever, it's never been a fast process.

00:48:12The new law that you have passed is good,

00:48:16effective, and pushing us to streamline.

00:48:19But as you know, it's very data intensive.

00:48:21We have to get the catch limits.

00:48:23The data from the past compared to today

00:48:26is an arduous process and takes time.

00:48:30The BAS implementation only made it worse.

00:48:34Here's what I can tell you.

00:48:36We expect some decisions in the next month or so.

00:48:41BAS.

00:48:41Decisions with regards to getting the funding

00:48:44out the door then?

00:48:45Yes, yes.

00:48:46Okay.

00:48:48Yes, for providing funding.

00:48:51BAS, this may be cold comfort for you,

00:48:55but I personally have a meeting on a weekly basis

00:48:58with the BAS team to get this thing back on track.

00:49:02IT systems, I've been doing this for 15 years,

00:49:05never seem to go the way they should in government.

00:49:07It's not an excuse, but it's complicated.

00:49:10So the good news is the system is now working.

00:49:14The BAS, the actual software is working.

00:49:17We are processing vouchers and grants

00:49:21at the same rate that we were pre-BAS.

00:49:25The challenge now is that we had a 20-year-old system

00:49:28that individuals knew how to work with.

00:49:30Now they have to learn a whole new system,

00:49:31so we're still slow.

00:49:33But long story short, we are through the worst of it.

00:49:37Not totally out of the BAS woods.

00:49:39I'll follow up with you on Alaska specifically,

00:49:42but I think you're gonna see some improvement soon.

00:49:44Well, we need to see that,

00:49:47because we're going into yet another season,

00:49:50and quite honestly, prepare yourself

00:49:53for another round of disasters.

00:49:55But our fishermen are giving up

00:49:57on the whole disaster declaration process,

00:50:00because they just can't see the help coming in any time.

00:50:05We will get better.

00:50:06Thank you.

00:50:07Another question, and this relates to your budget,

00:50:09that is very concerning, what we've been saying to people

00:50:13who are very stressed about what we're seeing

00:50:15in the oceans and what's happening,

00:50:18particularly with salmon, but in other species as well, crab.

00:50:22We're saying, we gotta get more data,

00:50:24we gotta get more science, we gotta count on NOAA,

00:50:26we need to make sure their budget is there,

00:50:28and then we learn that the 2024 Alaska Longline Survey

00:50:33is gonna be suspended this year.

00:50:35We understand it's high cost, of course it's high cost.

00:50:38But historically, the Alaska Fishery Science Center

00:50:41has been able to conduct the survey

00:50:43through a cost recovery effort.

00:50:45We know that we've got increased operating expenses,

00:50:48we get all that, but we established

00:50:51the Fisheries Survey Contingency Fund in FY24

00:50:56to provide funding for instances like this

00:50:58and to help prevent the unexpected cancellation.

00:51:02So I'm just gonna just again reinforce

00:51:07the importance of these marine surveys.

00:51:09We want to make sure that our fisheries

00:51:12are gonna be sustainable, even in challenging times.

00:51:15But we've gotta know as much as we possibly can.

00:51:18We have to have these marine surveys.

00:51:20So is there any assurance that you can give me

00:51:23in this category?

00:51:28Yes, I mean in the FY25 budget,

00:51:30we've prioritized the surveys.

00:51:32The Longline Survey is paid for actually by industry.

00:51:37You know, costs are going up,

00:51:39so it's a challenge for industry.

00:51:42I can tell you, we're very focused on it.

00:51:45It's always a tough decision to postpone

00:51:47or cancel a survey.

00:51:48We don't like to do that.

00:51:50We are being creative as we can

00:51:53to make sure that we get the best science

00:51:55and we strive to meet our core responsibilities.

00:51:58I share the priority and the concern.

00:52:00Well and you know, we talked about this during COVID

00:52:02when we lost years of surveys,

00:52:07which was horribly detrimental.

00:52:08So I'm just gonna reinforce,

00:52:10I'll be the broken record on it.

00:52:13I do have more questions that I want to submit

00:52:15for the record, but thank you Madam Secretary.

00:52:18Thank you.

00:52:19By the way, next week I'm talking to a group

00:52:20of Alaskan commercial fishermen

00:52:25just to hear and learn and listen.

00:52:28I'm not saying we're doing everything perfectly,

00:52:31but I definitely want you to know

00:52:33how seriously we take it.

00:52:36Thank you.

00:52:37The second vote has been called.

00:52:39So Senator Heinrich, I'm gonna call on you next

00:52:41and Senator Murray is gonna take over

00:52:43and I'm gonna go vote.

00:52:44Anybody else here has not voted yet?

00:52:47I would encourage you to do that.

00:52:49Thank you.

00:52:51Thank you Madam Chair.

00:52:52Secretary, as you know probably better than most,

00:52:57the Chips and Science Act has had just an incredible impact

00:53:01on semiconductor manufacturing in this country.

00:53:04I know you were recently in Arizona

00:53:07at the Intel facilities in Rio Rancho.

00:53:10They are reinvesting to the tune

00:53:14of 700 permanent manufacturing jobs

00:53:17and literally thousands of skilled trades jobs

00:53:20while they build it out.

00:53:23All of us care about jobs,

00:53:25but talk a little bit also about

00:53:27why these new advanced packaging facilities

00:53:30are so important to restoring America's leadership

00:53:33in making chips here at home

00:53:35and controlling our own supply chain.

00:53:38Yeah, thank you.

00:53:39Exactly for the reason you said.

00:53:41I mean, it is quite shocking if you think about it

00:53:44that in the past few decades,

00:53:46the United States has gone from being the leader

00:53:49in semiconductor manufacturing

00:53:51to now being 100% dependent on Korea and Taiwan

00:53:57for our leading edge chips.

00:53:5992% of our leading edge chips

00:54:01come from one company in Taiwan.

00:54:04It puts us in an unbelievably vulnerable position.

00:54:08So as you say, it's exciting that we're creating these jobs

00:54:12and it's thousands of them and they're good jobs

00:54:14and high paying and union jobs and it's great.

00:54:17This is fundamentally a national security issue.

00:54:20And you mentioned packaging.

00:54:22We also don't have advanced packaging in the United States.

00:54:25So a disturbingly high number of chips

00:54:28that are in US military applications

00:54:32are made somewhere and then shipped to China or Asia

00:54:34to be packaged.

00:54:36So if we wanna bolster our own national security,

00:54:40we need to make and package these chips

00:54:43in the United States.

00:54:46Giving businesses in rural communities

00:54:48the support they need is a real priority for my office.

00:54:52And so I was really pleased to see

00:54:55a new minority business development rural center

00:54:58announced for Las Vegas, New Mexico.

00:55:00Talk to the committee a little bit

00:55:01about what these new rural centers

00:55:04will be bringing to the table for our rural businesses.

00:55:07Yeah, thank you.

00:55:08So we, this is a pilot program that we started at MBDA

00:55:12because we know that rural businesses

00:55:14face a different set of challenges than,

00:55:17and you know that very well,

00:55:18than non-rural businesses.

00:55:21Harder to access capital, harder to find resources.

00:55:24So we started a pilot with rural business centers,

00:55:26including one in your state.

00:55:28It's been very successful.

00:55:30The budget request asked for $3 million so we can do more.

00:55:35It's just a matter of meeting people where they are

00:55:38and teaching them how to get capital,

00:55:40how to hire, how to train employees,

00:55:42how to export, et cetera.

00:55:46Fundamentally, my job is to make sure America

00:55:49out-competes the rest of the world.

00:55:50And that means every American business

00:55:54has to be able to compete.

00:55:55Minority owned businesses,

00:55:57rural dwelling businesses, et cetera.

00:56:00I'm gonna shift gears to AI for a moment.

00:56:05A number of us announced a new AI roadmap today.

00:56:09And NIST is a big part of that.

00:56:12The Safety Institute at NIST in particular.

00:56:15How do we make sure that the AI Safety Institute at NIST

00:56:20is also leveraging the capacity that exists

00:56:24in other parts of the federal government?

00:56:26And for me, that would mean things like the expertise

00:56:30at the Los Alamos and Sandia National Labs.

00:56:33That's a critical piece of it.

00:56:35So we have a very close working relationship

00:56:37with the Department of Energy

00:56:39who has some of the best AI experts in the federal government

00:56:43and who has the compute.

00:56:45They have the compute.

00:56:47So one of the things we're gonna be doing, for example,

00:56:49is testing and evaluating the frontier models

00:56:53before they go out into the world.

00:56:54We will need to work with the national labs

00:57:00and they've been incredibly collaborative

00:57:02in order to do that, setting the standards,

00:57:05tapping into their expertise,

00:57:07and quite frankly, benefiting from their compute

00:57:10to run some of these models.

00:57:11Yeah.

00:57:13I think the next couple of years

00:57:14is gonna be really important for us

00:57:16getting the infrastructure in place

00:57:19to be able to manage this transition effectively.

00:57:22Last quick question.

00:57:23The Russian seafood ban.

00:57:29What is Commerce doing to implement that ban?

00:57:32What more can you be doing?

00:57:33What do you need from us?

00:57:34Yeah.

00:57:36Obviously, we support the President's executive order.

00:57:39We are working closely with Treasury and CBP

00:57:45to enforce that.

00:57:47There's always more to be done.

00:57:48I mean, the conversation we had earlier

00:57:50with Senator Kennedy, it's what China and Russia are doing

00:57:54is, first of all, they're human rights abuses,

00:57:57which is wrong and we have to stand against,

00:57:59but also it hurts U.S. fishermen.

00:58:00It sure does.

00:58:01It distorts the market.

00:58:05It really hurts the stability of nations

00:58:08all around the world.

00:58:09I mean, if you go to the South Pacific,

00:58:11you will hear endless stories

00:58:14about illegal fishing coming from China.

00:58:18Yeah.

00:58:19We'll follow up.

00:58:20I mean, I think we're doing all we can,

00:58:22but there's always more to be done.

00:58:23Appreciate it, Secretary.

00:58:24Senator Hagerty.

00:58:26Thank you.

00:58:27Welcome, Secretary.

00:58:28Hello.

00:58:29It's good to see you.

00:58:30Good afternoon.

00:58:31Two topics I want to discuss with you today.

00:58:33One of them has to do with the census,

00:58:34the other with your recent trip to the Philippines

00:58:37and some of the discussions we've had along those lines.

00:58:39But first, with respect to the census,

00:58:42I'm quite concerned that the census and apportionment

00:58:45today is conducted in a way

00:58:47that encourages illegal immigration.

00:58:49I want to just ask you for the record.

00:58:52Illegal aliens today are counted in the U.S. census.

00:58:56Is that correct?

00:58:57Yes, as required by the Constitution.

00:58:59This total census population,

00:59:01and I want to be clear,

00:59:02it's counted, illegal aliens are counted.

00:59:04This total census population,

00:59:06which includes illegal aliens,

00:59:09is then in turn used for the allocation

00:59:12of congressional districts and electoral votes

00:59:15for each state.

00:59:16Is that correct?

00:59:17Yes.

00:59:18Recently, a video emerged of a Democrat representative

00:59:22named Yvette Clark from New York.

00:59:25She was calling for more illegal immigration

00:59:27to her New York congressional district

00:59:28because, I want to quote this,

00:59:30I need more people in my district

00:59:32just for redistricting purposes.

00:59:34This is what she said.

00:59:36Under the current rules, Secretary,

00:59:38Representative Clark's right, isn't she?

00:59:40If she has more illegal aliens coming to her district,

00:59:44she'll have a larger district.

00:59:45She'll have more power in her district

00:59:46relative to others that don't.

00:59:49I'm not going to comment on politics.

00:59:51My job is to run the census.

00:59:51This is just math.

00:59:53If you have more illegal aliens in your district,

00:59:57you're likely to have more power in your district.

00:59:59You will get greater representation

01:00:01by virtue of their arrival.

01:00:02Is that correct?

01:00:04Like I said, the Constitution requires us

01:00:06to count all persons, and that's what we do.

01:00:09The Constitution also talks about one person, one vote,

01:00:12and this absolutely dilutes the notion

01:00:15that citizens have the right to vote.

01:00:17It dilutes it, and what it does

01:00:19is it actually incentivizes illegal immigration.

01:00:24It allows illegal immigration to increase political power

01:00:26depending on your state or your congressional district.

01:00:29The more illegal aliens that you have,

01:00:31the greater your political power.

01:00:33I introduced legislation to address this.

01:00:35It's called the Equal Representation Act

01:00:37that would take away this perverse incentive.

01:00:39It would make certain that only citizens are counted

01:00:42for the purpose of allocating congressional districts

01:00:45and for the purpose of allocating electoral votes.

01:00:47This bill just passed the House of Representatives last week

01:00:50and I put this bill on the floor of the U.S. Senate.

01:00:54Every Democrat voted against it in March,

01:00:55but I'm very hopeful that common sense will prevail

01:00:58and we can see a very different result.

01:01:00Americans are shocked when they find out

01:01:02this is happening, particularly given the volume

01:01:05of illegal aliens that are coming into America right now

01:01:08and where the sanctuary cities are located.

01:01:10Turn to another topic, though, now,

01:01:12and that's the one you and I have discussed

01:01:14a number of times, and that has to do with the Philippines.

01:01:16And I'd mentioned to you in my past experience

01:01:19when I served as ambassador to Japan,

01:01:21two Chinese firms were attempting to acquire

01:01:23the Hanjin Shipyards that was in bankruptcy.

01:01:27The shipyard's now named Aguila Shipyards.

01:01:30It's located very strategically in Philippine's Subic Bay.

01:01:34It's a deepwater shipyard right on the South China Sea.

01:01:38It previously served as a U.S. naval shipyard

01:01:40when I lived out in Japan back in the 1980s.

01:01:43Unfortunately, and for different reasons,

01:01:45the DFC and other organs of the United States government

01:01:47were not able to respond in a way that I had hoped

01:01:51in terms of dealing with the financing of this,

01:01:53and you and I have discussed some of those issues there.

01:01:56The inability to engage directly resulted

01:01:59in us putting together an ad hoc team

01:02:02that was comprised of individuals in the State Department.

01:02:05I worked on it closely.

01:02:07We went to the Japanese government,

01:02:08we went to the Philippine government,

01:02:10and we eventually got it done.

01:02:12It was tough.

01:02:13I have to say, a private sector firm,

01:02:16Cerberus Capital Management stepped in

01:02:18and took an important leadership role,

01:02:20as well as certain individuals in the State Department

01:02:22and the Department of Defense.

01:02:24With that said, I really hope,

01:02:26and I think you would agree,

01:02:27that we need to evolve beyond some type of ad hoc approach

01:02:30when these situations occur.

01:02:32I would love to get your thought, your opinions,

01:02:34about how we might put in place

01:02:35some sort of permanent established way

01:02:37of dealing with these sorts of foreign strategic assets

01:02:40that come available,

01:02:41and have a way to participate and engage

01:02:43rather than just allow adversaries

01:02:45to acquire them.

01:02:47Yeah, I would love to work with you on this, Senator,

01:02:49and I will follow up with you.

01:02:52One of the initiatives I've been working on

01:02:54is the Indo-Pacific Economic Framework.

01:02:56In fact, we'll be hosting in June in Singapore

01:02:59an investor forum for exactly this purpose,

01:03:03which is bringing U.S. investors to the table in Singapore

01:03:08and exposing them to all of my IPEF counterparts

01:03:12from other countries are gonna come

01:03:14and present their high-priority projects,

01:03:16infrastructure projects, clean economy projects,

01:03:18energy projects, to have a more institutional way

01:03:25for U.S. investors, Australian investors,

01:03:27Japanese investors to look at these investments

01:03:31in these countries.

01:03:32Philippines will be there,

01:03:33so we can focus our investments in those priorities,

01:03:39because otherwise, as you say,

01:03:40and as you well know, China is everywhere.

01:03:43All of the ports, and I was in Kenya recently.

01:03:46It's not just the Indo-Pacific, it's Kenya.

01:03:49China is very aggressive.

01:03:51Even Latin America.

01:03:52Panama, I was in Panama.

01:03:54I recently went to Costa Rica.

01:03:55I brought with me two Costa Rica U.S. businesses,

01:03:58including Intel.

01:04:01That's a win-win.

01:04:02Draw down supply chain from China

01:04:05closer to home in Costa Rica,

01:04:06helps our supply chain and resiliency,

01:04:08draws us closer to Costa Rica.

01:04:10So I'm doing a lot of that work.

01:04:13We have to be doing so much more,

01:04:15but I'll send you details about this event in June,

01:04:18because I think it's exactly what you're talking about.

01:04:20Certainly, I appreciate the work you're doing,

01:04:21and if you see any opportunities with respect

01:04:24to the tools that we have today

01:04:26that are just not quite hitting the mark.

01:04:27I'm thinking specifically about the DFC.

01:04:29I was just with Scott and Nathan in another hearing,

01:04:32but if there are tools or adjustments to those tools

01:04:34that we could make, particularly where

01:04:36in the legislative branch we could help you,

01:04:37I'm looking forward to working with you.

01:04:38Thank you, Madam Secretary.

01:04:39Very good, thank you.

01:04:41Thank you.

01:04:42Thank you, Secretary Armando.

01:04:44Appreciate you joining us today.

01:04:46You know, the investments that we make

01:04:48in the Department of Commerce are so important

01:04:50to our economy, our national competitiveness,

01:04:53and our national security, as you were just talking about.

01:04:56They really help make sure that we have

01:04:58a thriving workforce and growing businesses,

01:05:01strong supply chains, trade relationships,

01:05:04high-speed internet in every zip code in America,

01:05:07reliable information about our weather,

01:05:09healthy salmon populations and hatcheries,

01:05:13and of course, cutting-edge research, as you well know,

01:05:14and manufacturing in critical industries

01:05:17like advanced manufacturing, clean energy,

01:05:19quantum computing, so much more.

01:05:22And we know that our adversaries,

01:05:23like the Chinese government, are doing everything they can

01:05:26to get ahead in those fields.

01:05:29We know they are not cutting their investments

01:05:32in the future or leaving them on autopilot,

01:05:35and that means that we cannot afford to do that either,

01:05:38which means we can't leave domestic spending

01:05:41behind in fiscal year 25.

01:05:44We are working with very tight, inadequate spending limits,

01:05:49and as I have said repeatedly, as we talk about

01:05:52how to address those inadequacies for defense,

01:05:56we have to do the same for non-defense,

01:05:59because our competitiveness

01:06:01and our country's future depend on it.

01:06:03We have to write strong bills for the year ahead,

01:06:05because if we leave our families behind,

01:06:08then our competitors are gonna leave US

01:06:10behind before too long.

01:06:12So I appreciate the work you're doing,

01:06:14and as a reminder to all my colleagues,

01:06:16we need to make sure we're funding the non-defense side

01:06:19as well as the defense side.

01:06:22Salmon, as you well know, are foundational

01:06:24to Washington State's economy and cultural heritage.

01:06:27Salmon recovery is a top priority for me,

01:06:31and NOAA plays a really integral role in this work,

01:06:34especially on Mitchell Act hatcheries,

01:06:36which are a mainstay of commercial, recreational,

01:06:39and treaty tribal fisheries in the Columbia River Basin.

01:06:43I secured investments in the Inflation Reduction Act

01:06:46to repair and modernize those hatchery infrastructure,

01:06:50and we have to continue that work

01:06:52through strong annual appropriations.

01:06:54Can you speak to this committee about the importance

01:06:57of maintaining robust funding

01:06:59for those Mitchell Act hatcheries?

01:07:03Yes, thank you.

01:07:04For 10 seconds, I just want to, I guess,

01:07:07support and emphasize the first point that you made.

01:07:10The way to compete with China and out-compete China

01:07:13is to invest in America.

01:07:15There's only so much we can do to hold them back, right?

01:07:18We need to, and by hold them back,

01:07:20I mean deny them our technology, for example.

01:07:23We need to invest in everything you're talking about.

01:07:25If every American has good job training,

01:07:27good jobs, good manufacturing, good broadband,

01:07:29that's how we out-compete.

01:07:31So I strongly support your leadership

01:07:34around focusing on the domestic investments.

01:07:36As it relates to salmon,

01:07:38you and I have talked about this before.

01:07:40The money that we have for the salmon hatcheries

01:07:44goes to states and also to tribes,

01:07:47and as you well know, this is a way of life for tribes,

01:07:51not to mention livelihood.

01:07:54I would say that without the money,

01:07:56we won't be able to maintain salmon population.

01:07:59So the short answer is, I suppose, it's incredibly critical.

01:08:03We won't be able to maintain the population,

01:08:05which means people will not be able to maintain their jobs,

01:08:09not to mention the environmental consequences.

01:08:13Thank you, absolutely agree.

01:08:15Now, I heard what Senator Murkowski said.

01:08:17I was gonna say the same thing,

01:08:19and I appreciated your response,

01:08:21but you need to know,

01:08:23we are hearing from our constituents

01:08:24that this desperately needed funding is delayed

01:08:28due to issues with NOAA's payment system,

01:08:30as you outlined to us.

01:08:33We've had several fishery disaster declarations

01:08:35that directly benefit us,

01:08:37but our people are not seeing the help get to them.

01:08:40So I heard your response to Senator Murkowski.

01:08:42I would ask you to do the same to us,

01:08:45to let us know in Washington State

01:08:47when they're gonna see these resources,

01:08:49because people are really getting disillusioned by this.

01:08:53I know, and I'm sorry.

01:08:55You'll see some announcements next month.

01:08:57It's definitely getting better.

01:09:00I know the crabbers are hurting,

01:09:02and the fishery is hurting.

01:09:06We're on it, and it's gonna get better.

01:09:09Okay, and we look forward to a personal update

01:09:12when you get that information, when it's gonna be.

01:09:15I wanted to ask you about NOAA's

01:09:16West Coast Regional Center in Seattle.

01:09:19It houses the largest variety of NOAA programs

01:09:22at a single location in all of the United States,

01:09:25and employs the largest number of NOAA staff

01:09:27outside of Washington, D.C.

01:09:29Some of those buildings date back to World War II era.

01:09:34So as NOAA works to consolidate in the Seattle region,

01:09:38I believe there's an opportunity to improve those facilities.

01:09:42An internal NOAA study arrived at the same conclusion.

01:09:45So I wanted to ask you today,

01:09:46will you commit to keeping me and my staff

01:09:49apprised of NOAA's plan to modernize the WRC?

01:09:53Yes, the WRC is a priority, and it is on track,

01:09:58and we will, of course, keep you apprised.

01:10:02Okay, because NOAA needs those top-class facilities

01:10:05in order to do really important work,

01:10:07whether it's weather, climate, coastal missions.

01:10:10So this is a critical area for us,

01:10:12and we wanna stay in touch with you,

01:10:14and you should do that, of course.

01:10:15Thank you, thank you very much.

01:10:17Thank you, Senator Murray.

01:10:18Senator Fischer.

01:10:21Thank you, Senator Shaheen,

01:10:22and thank you, Secretary, for being here today.

01:10:25Madam Secretary, as you know,

01:10:26NTIA received major funding under the infrastructure law

01:10:30for broadband deployment, and this funding allows states

01:10:34to develop plans that best fit their needs.

01:10:37However, Nebraska submitted its initial proposal

01:10:40for BEED funding, and NTIA has rejected it twice.

01:10:45In both instances, NTIA noted that Nebraska's application

01:10:50failed to establish a low-cost broadband service offering.

01:10:56I know you testified to Senator Moran

01:10:58that you believe this requirement is in statute,

01:11:01but did Congress expressly direct the Department of Congress

01:11:05and NTIA to include this retirement for states

01:11:11to describe a low-cost broadband service offering

01:11:14in their BEED applications?

01:11:16Yes or no? Yes.

01:11:18The law requires-

01:11:20I don't believe Congress did that.

01:11:23NTIA has only been able to cite

01:11:26a finding sections in the bill.

01:11:31Congress did not expressly state it.

01:11:36The law is quite clear, and Senator Shaheen and I,

01:11:39and Senator Collins were in the thick of it.

01:11:42The law explicitly forbids rate regulation,

01:11:47and I will testify to you today

01:11:48that we are not in the business of rate regulation.

01:11:51But in your-

01:11:52It also requires every state to have a low-cost option.

01:11:56Affordability is a requirement.

01:12:01But in your notice of funding opportunity,

01:12:05it only cites the findings section

01:12:09in the infrastructure law.

01:12:10It does not cite anything in the law itself.

01:12:17If the statutory reference goes beyond that,

01:12:20can you send that to us?

01:12:22Yes, but let me say that, yes,

01:12:24and I'm happy to look into Nebraska,

01:12:25and I'm happy to talk to you and the governor myself.

01:12:29But as we were saying before,

01:12:31look, the whole point of this,

01:12:33we believe the internet is not a luxury.

01:12:35It's a utility.

01:12:36It's something everybody needs.

01:12:39And if it's technically available to everyone in Nebraska,

01:12:43but at $100 or $200 or it's unaffordable,

01:12:47it is not internet for all, right?

01:12:49It is internet for the wealthy.

01:12:51But Congress, it's my understanding

01:12:54that Congress outright prohibited NTIA

01:12:57from regulating broadband rates

01:13:00as part of BEADS reauthorizing statute.

01:13:03And NTIA admits that in its official question

01:13:07and answer document on the BEAD program,

01:13:09they also note that a low-cost broadband service offering

01:13:12does not require any specific dollar figure

01:13:15to be attached to it.

01:13:17But the only, the only state plans

01:13:20that NTIA has approved so far,

01:13:23they've all included specific dollar figures

01:13:27for that low-cost broadband offering.

01:13:30So Nebraska's not interested in trying to

01:13:35have broadband rate regulation.

01:13:38So what are some alternatives

01:13:41to that specific dollar figure?

01:13:44What are some alternatives that can satisfy

01:13:47NTIA's low-cost broadband service offering requirement?

01:13:53So again, we're not telling Nebraska,

01:13:56you have to provide a $30 a month, $40 a month option.

01:14:00What we're telling Nebraska is,

01:14:03you need to satisfy us that for your state,

01:14:07based on your needs, at the end of the implementation,

01:14:11I think you guys are getting $400 million,

01:14:14every household in Nebraska has to have access

01:14:19to affordable internet.

01:14:21But do you have alternatives that would qualify for that,

01:14:22that would meet that requirement?

01:14:24Because they have to prove to us

01:14:26that everyone will have affordable access

01:14:28to high-speed internet.

01:14:29So you don't have any alternatives

01:14:31that you could offer my state that might work for them?

01:14:34Because I know my state's a little concerned

01:14:39about the legal liability it's going to have

01:14:42when it's sued for that lack of authority

01:14:43to regulate the broadband service rates.

01:14:46But we're not, I will call you

01:14:48and we can follow up on this.

01:14:50We're trying to get, the reason we're doing this

01:14:51state by state is to give states flexibility.

01:14:55And what we're trying to do is,

01:14:58look, this is a hard thing to do.

01:14:59We don't want, this is a ton of taxpayer money going to.

01:15:03I've got another one here.

01:15:04Okay, go ahead.

01:15:04Switching gears.

01:15:05Okay, go ahead.

01:15:06I'm sure the department's oversight NTIA

01:15:09also has brought federal spectrum issues

01:15:12front and center for you.

01:15:13And safeguarding the diverse missions

01:15:16of federal agencies is critical as I know you know.

01:15:20Do you have any opposition to the concept

01:15:22of NTIA co-leading spectrum studies

01:15:25with the Department of Defense,

01:15:28specifically for circumstances

01:15:30that would impact DOD systems?

01:15:32No.

01:15:33Great.

01:15:35So from your perspective,

01:15:36has DOD been fair and transparent

01:15:40in its communications with the Department of Commerce?

01:15:43Yes.

01:15:44Great, thank you.

01:15:46But I will come back to you on this, the broadband.

01:15:50Thank you, Senator Fischer.

01:15:51Senator Coons.

01:15:52Thank you so much, Chair Shaheen

01:15:54and Secretary Raimondo.

01:15:55Great to be with you.

01:15:57I just so appreciate the positive energy,

01:15:59the can-do attitude, the business background

01:16:03and the state leadership background.

01:16:04And I appreciate that you're from a small

01:16:07but mighty state that has a long and plucky history

01:16:09in manufacturing, much as New Hampshire does,

01:16:11much as I'd like to believe Delaware does as well.

01:16:14And grateful to be with you.

01:16:15I don't know if you remember this

01:16:17from our first conversation,

01:16:18but my father launched the Rhode Island Seafood Council.

01:16:20And so years and years ago,

01:16:22he was literally one of the folks here advocating

01:16:25for the fishermen of New England

01:16:28to receive some support or benefit

01:16:29when there were fishing challenges in the region.

01:16:32So listening to the exchanges with a variety of senators

01:16:35from both sides of the aisle brought me back

01:16:37to what it was like to be in the audience visiting

01:16:39when he was testifying on these issues.

01:16:41Manufacturing, as you know,

01:16:42is something of great importance to our country.

01:16:45To me personally, I spent eight years

01:16:47in the manufacturing industry

01:16:49before being elected to anything.

01:16:51Manufacturing jobs are great jobs.

01:16:52They anchor families and communities.

01:16:54They pay higher wages.

01:16:55They have better benefits.

01:16:57And President Biden's presiding over a renaissance

01:16:59in advanced manufacturing in the United States.

01:17:02And a key piece of that

01:17:03is the ManufacturingUSA program where NIST,

01:17:06the National Institute for Standards and Technology,

01:17:10plays an absolutely critical role.

01:17:11I think NIST is one of the most underappreciated,

01:17:13high-impact components of your department.

01:17:17There's 17 ManufacturingUSA institutes

01:17:20that specialize in different areas.

01:17:22As you're well aware, one of them in Delaware,

01:17:24the National Institute for Innovation

01:17:25in Manufacturing Biopharmaceuticals, or NIMBL,

01:17:29will play a key part

01:17:30in demonstrating the technologies

01:17:33needed to manufacture the next generation

01:17:35of therapeutics, diagnostics, vaccines.

01:17:38NIST is planning to add two additional institutes this year

01:17:41focused on AI and semiconductors.

01:17:44NIMBL in Delaware is the only NIST institute.

01:17:46It's the only institute not run

01:17:48by either Department of Energy or Department of Defense.

01:17:51So you have a great opportunity for Department of Commerce

01:17:54to significantly increase from one to three

01:17:57its ManufacturingUSA institutes.

01:17:59I was struck that the budget request was for $37 million,

01:18:04given the real impact that this national network has.

01:18:08And for those who misunderstand them

01:18:09to be only in 17 locations,

01:18:12every one of them is a hub

01:18:13from which spokes spread throughout the country.

01:18:16The NIMBL Institute in Delaware

01:18:18has partner companies and institutes

01:18:21and universities in 30 states.

01:18:23I recognize budgets require trade-offs.

01:18:25I'm gonna push to try and find a way

01:18:27to increase investment in this program.

01:18:30New Hampshire also benefits

01:18:31from having one of these institutes.

01:18:32I'd just be interested in whether you think

01:18:34that's a sufficient level of investment,

01:18:36given how it punches above its weight

01:18:38and its potential impact.

01:18:40You know, before we were talking about

01:18:43what a tough top line we have on this budget.

01:18:45So it's, I've been to NIMBL.

01:18:49I've seen it, I know about it, it's great.

01:18:51The work MEP does is great, by the way.

01:18:53The work ManufacturingUSA does is great.

01:18:57The fact that we have asked for additional money

01:18:59in both of those programs,

01:19:02in light of this tough budget,

01:19:03should tell you how much we think it matters.

01:19:08And certainly, the more we have,

01:19:10the more good we can do.

01:19:11By the way, the man who just walked in

01:19:13would agree also that Rhode Island's

01:19:15the center of the universe.

01:19:16So I'm glad your father,

01:19:18we were just discussing how all roads

01:19:20get back to Rhode Island.

01:19:21You're absolutely right, Madam Secretary.

01:19:23And it's because of you.

01:19:25And your advocacy and support

01:19:26for the Manufacturing Extension Partnership

01:19:28is also deeply appreciated.

01:19:30I'm closely following the Regional Technology Hubs

01:19:33implementation by EDA.

01:19:35It allows more regions to participate

01:19:37than just the few superstar cities.

01:19:40And I was proud to see the greater Philadelphia

01:19:42propel Tech Hub Advance,

01:19:44so that includes NIMBL as one of its partners.

01:19:46There's also only 41 million for Tech Hubs,

01:19:49also something I think deserves more support.

01:19:51I'll ask one last question.

01:19:53Agreed, by the way.

01:19:54I think you've got a tremendous PTO director

01:19:57and the role of intellectual property

01:19:59in a strong patent system

01:20:01in making manufacturing competitive and successful is key.

01:20:05The European Commission a year ago

01:20:07when you were before us

01:20:08was drafting a standard essential patent regulation

01:20:12that I was afraid would encourage

01:20:13China's abusive royalty setting practices

01:20:16and harm U.S. innovators and manufacturers.

01:20:20In February, the European Parliament

01:20:21adopted the draft regulation

01:20:23and EU member nations are now likely

01:20:25going to adopt these regulations as well.

01:20:28I think it's in real tension

01:20:29with an open global multi-stakeholder

01:20:31standard setting and licensing system

01:20:33that's essential to developing 6G and to R&D.

01:20:37Will you work with me to make sure

01:20:39that the U.S. doesn't follow the EU down this road

01:20:43when it comes to standard essential patent?

01:20:46We will.

01:20:46By the way, I have to thank you.

01:20:48Cathy Vidal is amazing

01:20:50and has enjoyed her working relationship with you.

01:20:53Of course, we will continue that.

01:20:55Thank you very much, Madam Secretary.

01:20:56Thank you, Madam Chair.

01:20:57Thank you, Senator Coon.

01:20:58Senator Britt.

01:21:00Thank you so much, Madam Chairwoman.

01:21:02Secretary, it is so nice to see you today.

01:21:04Thank you so much for appearing before this committee.

01:21:07Your department has done incredible work

01:21:09and has a big impact on Alabama.

01:21:12From Red Snapper to assessing anti-dumping

01:21:16to countervailing duties on imports,

01:21:18unfairly threatening Alabama businesses,

01:21:21the decisions that you and your department make

01:21:23impact the lives of millions of Alabamians.

01:21:25And on some of the issues,

01:21:27you and I may have a disagreement

01:21:30or I may wanna see you move faster.

01:21:33But what I wanna say is you've been great to work with.

01:21:36I have my daughter here with me today

01:21:38and it is incredibly important for me

01:21:40for her to see the fact

01:21:42that you do not have to agree with someone

01:21:44to show them respect.

01:21:45And in fact, even if we share

01:21:47very different political ideologies,

01:21:50where there are common ground,

01:21:51we need to move forward and work together.

01:21:54And I have enjoyed that relationship with you

01:21:56and I certainly hope that that will continue.

01:21:59And I think that her generation

01:22:01needs to see that more than anything.

01:22:03So thank you very much for that.

01:22:06And despite obviously having some disagreements,

01:22:09I certainly appreciate your whole team's willingness to work

01:22:13and that willingness has been valuable

01:22:15despite the places where our views diverge.

01:22:18I do think even moving forward,

01:22:20we have many opportunities to work together.

01:22:21So for example, there is an exciting opportunity

01:22:24to fund a tech hub in Birmingham

01:22:26that would bring public-private partnerships

01:22:28and academic partners together.

01:22:30This is a unique opportunity

01:22:31that would promote a domestic supply chain

01:22:33for critical medicines and spur innovation

01:22:36throughout the region and across the country.

01:22:38I have also appreciated your personal attention

01:22:42that you've given to BEAD implementation.

01:22:44I know that the state has enjoyed working with your team

01:22:47and I trust that that feeling is mutual.

01:22:49Obviously, any program of this size

01:22:51is going to have some hiccups,

01:22:53but I feel good that as long as stakeholders

01:22:55are still at the table,

01:22:56we will certainly smooth those out.

01:22:58Continuing to push NIST and the NTIA

01:23:02to communicate from the same playbook

01:23:04and continue to provide much available

01:23:08and flexibility to groups implementing this program,

01:23:11I think is critically important.

01:23:13Last year, we discussed the radar.

01:23:15And you gave me a commitment

01:23:17that your office would work with myself

01:23:19and Congresswoman Sewell and Congressman Aderholt

01:23:21to help address the radar gaps in Alabama.

01:23:25Thank you for following up on that request.

01:23:27We've been able to increase radar coverage of Alabama

01:23:30at 3,000 feet by 4,200 square miles since last year.

01:23:35That means 8% more of Alabama

01:23:38has adequate radar coverage compared to last year.

01:23:41Now, while there is plenty more work to be done,

01:23:44I certainly believe every Alabamian

01:23:46should live with proper radar coverage

01:23:48to protect and preserve lives

01:23:49during severe storms and tornado,

01:23:51regardless of their zip code.

01:23:53I certainly appreciate the progress that's been made.

01:23:55And I want to continue to work with you

01:23:57to address those remaining gaps.

01:24:00One area I'm finding increasing concern to Alabama

01:24:03is the Endangered Species Act implementation,

01:24:06specifically revolving around the Rice's Whale.

01:24:09We must find a way to preserve species based on science

01:24:13in ways that do not hamstring our economy

01:24:15and national security.

01:24:17I was grateful the department denied

01:24:19the extremely harmful Rice's Whale petition

01:24:22from non-government organizations last fall.

01:24:25The measures included in that petition

01:24:27would have severely curtailed operations

01:24:30at the Port of Mobile and possibly eliminated

01:24:33the commercial and recreational fishing opportunities

01:24:36in the Gulf.

01:24:37Madam Secretary, when issuing regulations

01:24:39under the Endangered Species Act,

01:24:41will you commit to me to carefully consider the science,

01:24:45the economic ramifications,

01:24:47and the national security impacts of any regulation

01:24:51as the law requires?

01:24:53Yes, yes.

01:24:54All of these, it's in active regulation.

01:24:58You know, we're making the rule now,

01:25:00but we endeavor for it to be science-based,

01:25:03but also balance commercial interests, so yes.

01:25:05I am so grateful to hear you say that

01:25:07because I want to reiterate that the known economic impacts

01:25:11at stake here and the lack of science

01:25:14that's available on the species

01:25:16need to be taken into account.

01:25:18Alabama's commercial fishing operations

01:25:20provide more than $291 million in economic value

01:25:26and recreational fishing adds another $452 million

01:25:30in economic value to the region.

01:25:32According to NOAA documents, the Port of Mobile

01:25:35has $270 million a day of economic impact.

01:25:40That's a little under $100 billion a year.

01:25:44For reference, Alabama's estimated GDP last year

01:25:47was about $300 billion.

01:25:49That puts it into context for you.

01:25:51So it has been raising alarm bells, as you can imagine,

01:25:54when we see claims made by NOAA

01:25:56that cannot be backed up by science,

01:25:58especially when these claims could be used

01:26:01to justify regulations impacting

01:26:03a third of the state's economy.

01:26:06So for example, NOAA claimed in its

01:26:08Species in the Spotlight publication

01:26:10that rice's whale were declining,

01:26:13even though NOAA scientists have noted

01:26:15that there is not enough data on the species

01:26:18to declare a population trend.

01:26:21So similarly, NOAA has noted that there have been

01:26:23few sightings of calves in 2010

01:26:27and implied the population was maybe declining

01:26:29due to deep water horizons.

01:26:31And so obviously, if you aren't looking for them,

01:26:34you know, you're not gonna find them.

01:26:35So as I wrap up, Madam Secretary,

01:26:38these are just a couple of the examples

01:26:40of how the lack of data has been framed as a crisis.

01:26:44And when official NOAA documentation

01:26:47frame a lack of research as a reason for a regulation,

01:26:51I think Alabamians are clearly and justifiably

01:26:54deeply concerned about the direction

01:26:56the department is heading.

01:26:57So if you will, please work to ensure

01:27:00that scientific integrity is protected at the department

01:27:03and that the department understands the balance

01:27:06of obviously making sure that we are moving forward

01:27:09in conservation, but that the economic

01:27:11and national security implications of these decisions

01:27:13are balanced as well.

01:27:14Yes. Thank you.

01:27:15Yes.

01:27:17I've talked with a number of your colleagues earlier

01:27:18about how many Americans are in their living fishing,

01:27:22crabbing, fishing, et cetera.

01:27:24So I will commit to you that our decisions

01:27:27will have sound scientific background

01:27:29and that we have an open ear to commercial interests.

01:27:34Also on the tornado,

01:27:37because of the exchange we had at the last hearing,

01:27:40I went back to the department and looked into it

01:27:43and directed the weather service to work with the FAA.

01:27:45We've lowered the beams and you could take credit

01:27:48for having more accurate forecasting of tornadoes

01:27:53for more folks at lower severity storms.

01:27:58Which is just, I mean, that is huge.

01:28:00And so thank you.

01:28:01And as I said earlier, I just appreciate

01:28:02the willingness to work with you

01:28:04and your willingness to work with our team.

01:28:06So thank you so much.

01:28:07Thank you.

01:28:08Thank you, Senator Britt.

01:28:09Would you like to introduce your daughter to the committee?

01:28:11Oh my gosh, that's so exciting.

01:28:13Yes, thank you so much, Madam Chairwoman.

01:28:15So this is my daughter, Bennett Britt.

01:28:18She is probably like, oh my goodness,

01:28:20I can't believe this is happening.

01:28:22I know I never passed up an opportunity

01:28:23to embarrass my kids.

01:28:25Yes.

01:28:25How old are you?

01:28:28Nice.

01:28:29So she's in ninth grade and she exempted her exams

01:28:32and she said, mom, do you mind, can I come to D.C.?

01:28:35Which, you know, that never happens.

01:28:38So I jumped on it.

01:28:39So she's here and has been a part of it.

01:28:43She said, well, you've got a lot of hearings.

01:28:44I said, yeah, we do.

01:28:46Well, we're delighted you're here.

01:28:48Thank you.

01:28:49Thank you for joining us.

01:28:52Senator Van Hollen.

01:28:54Thank you, Madam Chairman and Senator Britt,

01:28:57Secretary Raimondo.

01:28:58Thank you for providing a great example

01:29:00for everybody as to how you can disagree on many issues,

01:29:05but still work together.

01:29:06I appreciate it.

01:29:08Madam Secretary, let me start by thanking the President

01:29:12and you and the entire Biden administration

01:29:15on the whole of government response

01:29:17to the tragic collapse of the Key Bridge in Baltimore.

01:29:21I'm grateful to you and your team

01:29:24for providing a quick economic analysis

01:29:27of the impact on the port and supply chains

01:29:31among other things.

01:29:32As you know better than anybody,

01:29:34it's just one example of the large scope of responsibilities

01:29:38housed within the Department of Commerce.

01:29:42Many agencies, including many that we're proud

01:29:45to be housed in Maryland, like NOAA, like NIST,

01:29:50and the Census Bureau.

01:29:53I wanted to just, at the outset,

01:29:56identify a couple of concerns about the budget.

01:29:58I know we're all concerned

01:29:59about the overall budget constraint numbers,

01:30:03but there's NOAA's integrated ocean observing system,

01:30:08which provides important climate and maritime data.

01:30:11It is slated for a 76% cut in this budget,

01:30:17which greatly concerns me,

01:30:18and I'll be talking to members of the committee about it,

01:30:21and we'll be submitting a question for the record.

01:30:24I also want to acknowledge the work of the NTIA.

01:30:28As you mentioned, on expanding broadband,

01:30:30this is a very, very important priority,

01:30:33and though it is an FCC program,

01:30:38at least with respect to the affordable connectivity piece,

01:30:42we look forward to trying to extend funding for that

01:30:47so that more Americans can get affordable connections.

01:30:51Finally, I want to thank you for the phone conversation

01:30:55that you and I and Senator Cardin had

01:30:57about the Greater Baltimore Tech Hub.

01:31:00That designation has had

01:31:02a very important multiplier effect on investment

01:31:06to develop the next generation of healthcare technologies

01:31:10with over $800 million in private and state

01:31:14and local public commitments

01:31:16to support the proposal that's been put forward

01:31:21and I look forward and we're hopeful

01:31:23about the upcoming Tech Hub phase two announcement.

01:31:27So just thank you for the initiative

01:31:30and thank you for taking a very close look

01:31:33at Baltimore's proposal.

01:31:35It would make a very, very big difference for Baltimore

01:31:38and I think a great return for the country.

01:31:42A lot of people have talked about different components,

01:31:46offices within NIST and the role they play.

01:31:51I just want to express a general concern

01:31:53which I think you share about the lack of funding for NIST.

01:31:59It is an excellent institution

01:32:02and has become really a victim of its own success

01:32:05in that we have asked them

01:32:08to take on more responsibilities without the funding.

01:32:12It's homes of the Chips for America program,

01:32:15it's leading a lot of the efforts

01:32:16with respect to developing safe and trustworthy AI,

01:32:21it's doing leading work in quantum

01:32:23and other cutting edge areas

01:32:25and yet NIST effectively had an 8% cut

01:32:29relative to fiscal year 23

01:32:31in the current fiscal year budget 24

01:32:35and it's being asked to stretch its resources even further.

01:32:38Could you just speak generally Secretary Raimondo

01:32:42about why we need to do more on NIST?

01:32:45You mentioned how the best way to compete

01:32:47is to invest in America

01:32:48and NIST is a critical part of that strategy.

01:32:51Yeah.

01:32:52Okay, very quickly on a few of your things.

01:32:55The Tech Hub proposal is fantastic,

01:32:57I don't know if you're gonna get it

01:32:59but I can say I've met with them, it's fantastic

01:33:01and I appreciated that phone call also.

01:33:04If there is one program that you can find money

01:33:07to increase funding for, it is Tech Hubs.

01:33:09These Tech Hubs are incredible

01:33:11in every nook and cranny of this country,

01:33:13it's great innovation

01:33:14and we ought to, the United States of America,

01:33:16be able to fund it.

01:33:18So I just would like to say that.

01:33:19I'll be going to your state with Governor Moore shortly

01:33:24to talk about what more we can do to help small businesses

01:33:27and businesses affected by the collapse.

01:33:29Of course, we invite you to attend that

01:33:31but I want you to know we're doing everything

01:33:33we know how to do to be there

01:33:36especially as it relates to supply chain disruptions

01:33:39due to the collapse and then business disruption

01:33:42and always wanna hear from you

01:33:44if you have ideas for what more we can do.

01:33:47With respect to NIST,

01:33:49if you think about the technology of the future,

01:33:54you think of AI and you think of quantum,

01:33:57that is what NIST does, right?

01:33:59In this budget, I am asking for $60 million in NIST for AI.

01:34:09Honestly, that is a drop in the bucket

01:34:10for all of the testing, evaluation and safety work

01:34:14that we have to do for artificial intelligence.

01:34:17I can't even imagine what China spends

01:34:20as a government level on AI.

01:34:22Same for quantum.

01:34:24If we don't lead the world in these two areas

01:34:29of technological innovation,

01:34:31that's a problem for the whole world,

01:34:32not just for our own national security.

01:34:35So I don't know what to say.

01:34:37I mean, Senator Coons earlier was talking about IP,

01:34:41China flood standard setting bodies for the internet,

01:34:44for AI, for IP.

01:34:46NIST has to be properly funded

01:34:49if the United States is going to lead,

01:34:52especially I would say in AI and in quantum.

01:34:55Also, the facilities, and I know you know this,

01:34:58but for your colleagues, it's really a problem.

01:35:02I mean, the work that these scientists

01:35:06in a couple of cases, Nobel Prize winning scientists,

01:35:09work in facilities that in some cases are falling apart,

01:35:14and we really need for safety reasons, if no other reason,

01:35:18to have more investment to protect this work that NIST does.

01:35:23Well, thank you.

01:35:25I'm very worried that having passed

01:35:27the CHIPS and Science Act,

01:35:29we're doing a good job on the CHIPS piece,

01:35:31but we're not really fulfilling the promise

01:35:33on the science part,

01:35:35and it will come back to bite us if we don't do it.

01:35:38And I will just say finally,

01:35:40we are very bullish in Baltimore

01:35:42about our tech hub proposal.

01:35:45By the way, on the science piece, I share that concern.

01:35:48I really share that concern.

01:35:50Yeah, all right.

01:35:51Well, hopefully we can,

01:35:53I know that the chair shares that concern too,

01:35:56so I look forward to working with you.

01:35:57Absolutely, and we've heard lots of interesting proposals

01:36:02around tech hubs on this committee today.

01:36:04So we agree, we would like to have more money

01:36:07to help fund that.

01:36:09So, I'll let you go,

01:36:11but I hope that you feel not the situation I'm in.

01:36:15Senator Marquardt.

01:36:17Thank you, Madam Chair,

01:36:19and welcome Madam Secretary.

01:36:22Speaking of science,

01:36:24I wanted to ask you about the $11 billion

01:36:26appropriated for R&D programs under the CHIPS Act.

01:36:30I think this funding is significant,

01:36:33as it can provide research and development value

01:36:37materials, to design and manufacturing, all are key components for our economic

01:36:42competitiveness. What are your thoughts regarding the role that the National

01:36:46Semiconductor Technology Center, NSTC, can play in bolstering R&D for advanced

01:36:52semiconductor technology? I think it will play an absolutely critical role. We have

01:36:58made great progress. In some ways I think that 11 billion dollars is even more

01:37:03exciting than the 39 billion. The 39 billion is necessary. We need to make

01:37:08leading-edge chips in America for our national security, but the 11 billion

01:37:12pushes us to the next frontier. Innovations in chip design, chip

01:37:18materials, chip packaging, and so we have just established, we hired somebody to

01:37:25run the NSTC. We're just now in the process. We're going to have more

01:37:29announcements this summer and this fall, but that's really the signature R&D

01:37:34initiative, which I think will, you know, catapult the U.S. semiconductor industry

01:37:40for the decades to come. Well, as you probably are aware, Oregon, no surprise,

01:37:45has a deep ecosystem in chips, R&D, and in manufacturing built up over the last

01:37:51four-plus decades. We have all the necessary components to generate a

01:37:56successful NSTC tech center. What is the timeline for expending 11 billion in

01:38:02total funding? By the way, I've been there and it is incredible to see the

01:38:07ecosystem there. We'll, this summer, this summer we'll put out the application and

01:38:13before the end of the year we'll make announcements. And those will be

01:38:19announcements on where an operational headquarters and the tech center locations

01:38:23will be. Yes. Well, I invite you to come back to visit that incredible ecosystem

01:38:28again. Can I, can I host you? Absolutely. Okay, great. Thank you. I also wanted to

01:38:37discuss the impact of the 3.5 billion set aside in chips funding for secure

01:38:42manufacturing. I'm somewhat concerned about the impact of the 2024 CJS bill in

01:38:49terms of its impact on key manufacturing and R&D projects that were slated to be

01:38:54funded by the Chips and Science Act. I'd like to follow up with you if I could

01:38:59arrange to meet with you later on. Yes, I'm happy to do that. In fact, this is an

01:39:04issue we discussed, the secure enclave money that came out of the Chips Act

01:39:08funds. Obviously, we could better talk about it in a classified setting, but I'd

01:39:12be very happy to do that. I welcome that. I'll look forward to that. Thank you.

01:39:16Thank you very much. I want to turn to the issue of illegal, unreported,

01:39:20unrelated fishing, IUU fishing. The Seafood Import Monitoring Program has

01:39:25been in place for more than four years, and it ensures the integrity of seafood

01:39:30entering the U.S. market. At least it attempts to do so, and it's a big

01:39:32contributor towards that, that goal. In December of 2022, NOAA withdrew its

01:39:40proposed rule updating the Seafood Import Monitoring Program, the SIMP,

01:39:44further exposing U.S. consumers to seafood sourced from illegal or unreported

01:39:49or unregulated fishing practices. Any takeaways or insights on NOAA's ongoing

01:39:55comprehensive review of SIMP?

01:40:00The insight is, we've talked about this before, and I've received your

01:40:04correspondence. The insight is that the problem's getting worse, not better.

01:40:09We're more focused on it than ever. The president did an executive order banning

01:40:12Russian imports of fish. The issue you're talking about is mainly China, and

01:40:20it's not only a violation of human rights, but it distorts the market and hurts

01:40:24U.S. fishermen. I would look forward to continuing to work with you on it.

01:40:29Well, thank you. I appreciate that very much. The integrity of our fisheries

01:40:34requires the integrity of our fishing monitoring system, and I do appreciate

01:40:39that, in November of last year, NOAA announced a comprehensive review of

01:40:43SIMP. I just want to stress an urgency to the completion of that and an update

01:40:50of the rules to make it work effectively.

01:40:53I hear you. Thank you.

01:40:54Thank you very much.

01:40:56Thank you, Senator Merkley. Senator Reed.

01:40:58Thank you very much, Madam Chair, and thank you, Madam Secretary. First, let

01:41:04me thank you for joining us in Newport a few days ago for the groundbreaking on

01:41:09the NOAA Atlantic Ocean Center. It's going to add to the vitality of Rhode

01:41:15Island as a hub, and I use the word very explicitly, for the blue economy.

01:41:24Coupled with the NOAA presence, the Coast Guard presence, the Navy presence,

01:41:29the University of Rhode Island's School of Oceanography, and just across the

01:41:34border, Woods Hole, et cetera, this is a place where ocean technology can and

01:41:41will take off. We have, as no surprise, I will echo the chorus about the

01:41:47tech hubs. We have put in an ocean tech hub. You were gracious enough to let

01:41:52me come to the office and talk about it, and we feel it is going to be a great

01:42:01asset for the country, not just Rhode Island. I would hope you could give us

01:42:05an idea of when the announcements will be made for phase two, but also any

01:42:10other comments that you have.

01:42:12Well, thank you for coming to the office to highlight the benefits and

01:42:18advantages of that program. As I have said, I have been overwhelmed by the

01:42:22quality of tech hubs, and Rhode Island is no exception. I hear you. I know how

01:42:27great the application is. We will be making announcements this summer.

01:42:32So, June, July time frame, we will be making the announcements.

01:42:36Again, you will make it, I am sure, with wisdom and commitment to the merits

01:42:44of the program, but thank you for your attention to RF at Rhode Island.

01:42:48I want to switch gears a bit. One of your agencies, the Bureau of Industry

01:42:53and Security, has the obligation to promulgate regulations for exports,

01:42:58et cetera. One of the problems we have discovered is the export of U.S.

01:43:04made firearms and ammunition, which has been diverted to impact on national

01:43:10security, diverted to drug trafficking, gangs, political violence, et

01:43:17cetera. The BIS has put forward a new rule after months of work that will

01:43:25better align our national security and foreign policy objectives. Can you

01:43:29explain to the committee the process that the BIS went through and how it

01:43:35affects our national security?

01:43:37Yes. We received information that many of the guns which we were exporting

01:43:43were being diverted to terrorists, drug cartels, drug lords, criminals in other

01:43:49countries. We paused and we studied it for a number of months. At the end of

01:43:55May, we're coming out with new regulations. The pause will end. We have

01:43:58new regulations. The State Department has given us 36 countries that they

01:44:04believe are problematic, political instability, narcotics, et cetera. We

01:44:11are having much tighter scrutiny of gun exports to those countries. What I

01:44:18would say is this is a narrowly targeted regulation focused on enhancing our

01:44:25national security. It will affect less than 10% of all of our country's gun

01:44:31exports. It is not a broad ban on gun exports. It is a narrowly targeted

01:44:38restriction to improve U.S. national security.

01:44:42Thank you, Madam Secretary. Let me just conclude with mentioning the NOAA

01:44:47Narragansett Laboratory, which is, of course, the bay from the NOAA Newport

01:44:52Laboratory that is being built, actually headquarters. Cuts in the cooperative

01:44:58research budget are severely and potentially going to limit the research

01:45:03that's done at the Narragansett Laboratory. Cooperative research is incredibly

01:45:09important. I would like to work with you and the Department to continue to

01:45:15resource that work at the Narragansett Laboratory.

01:45:19We will do that. As I said earlier, it's a very challenging budget. In

01:45:22NOAA, we decided to prioritize weather satellites, which are expensive but

01:45:26necessary. I suppose the only good news is there's $31 million for offshore

01:45:31wind in the NOAA budget. Yes, we will work with you to do everything we

01:45:35can.

01:45:36Well, thank you. Madam Chairman, I think to emphasize the point that was

01:45:41made on my arrival that all roads lead to Rhode Island, we should realize

01:45:46that Senator Britt lived in Rhode Island while her husband paid for knowing

01:45:50we're patriots, and she was my constituent. By the way, her daughter,

01:45:55although born in Boston, also resided in Rhode Island. All roads do lead

01:45:59to Rhode Island. Thank you.

01:46:01Further proof.

01:46:05I can't even respond to that.

01:46:09New England. Roads lead to New England.

01:46:10That's right. New England's fine.

01:46:13Thank you.

01:46:14I don't think we're expecting any other senators, but I do have a couple of

01:46:18final questions. I want to go back to some of the coastal programs that have

01:46:23been mentioned by a number of us, Sea Grant, IOS, the National Oceans and

01:46:31Coastal Security Fund grants. All of those programs are critical. Again, I

01:46:37understand it's a tight budget, and I understand you had to make cuts, but

01:46:41those are programs that I don't think we can let be reduced to the extent

01:46:47that they are or zeroed out. Another one is the NOAA Hydrographic Mapping

01:46:54Effort, which includes the Center of Excellence for Operational Ocean and

01:46:58Great Lakes Mapping and Joint Hydrographic Center. Those are important

01:47:01partnerships for the University of New Hampshire. We are going to be looking

01:47:06for ways in which we can continue funding there, and will you commit to

01:47:09work with me to continue those efforts?

01:47:11Yes. Absolutely. Let's work together. We don't deny the importance.

01:47:17As I said earlier, or maybe I didn't say, we are endeavoring wherever we can to

01:47:21use infrastructure law monies and IRA monies to make up for some of these

01:47:26losses, but yes, I would look . . . let's work with your staff and see what we can get

01:47:29done. Well, thank you. The other issue that I have is also related to coastal

01:47:37concerns and fishing. You heard from Senator Murkowski the challenges in

01:47:41Alaska. As you know, those are significant challenges in New England as

01:47:47well. The ground fish surveys in the Northeast have really been critical. I

01:47:53understand there are concerns about issues with the NOAA research vessel, the

01:47:58Bigelow, which has been doing a lot of those surveys. So what is the plan for

01:48:06mitigating the loss of the Bigelow while it is out of service for maintenance?

01:48:15We have a plan. It is out of service for maintenance. We actually have, and I'd be

01:48:20happy to have my staff brief yours, a full comprehensive plan for how we will

01:48:25deal across the fleet when the vessels are taken offline for maintenance to

01:48:31make sure that we continue to do the work that we need to do.

01:48:34Good. Well, we look forward to hearing that. Another effort that has been really

01:48:40critical for states like New Hampshire that have very few, sadly, very few

01:48:46fishermen left is the at-sea monitoring program and the effort to provide

01:48:53assistance for that monitoring so the cost doesn't all fall on the fishing

01:48:59industry has been critical. Can you talk about how this effort's going? In 2024 we

01:49:04provided funding to integrate that program into stock assessments. Is that

01:49:09moving forward and what do you see as the outcomes of that research? You have

01:49:17talked about this with me before. I would say it is moving forward, but once again

01:49:23I think the best next step is to have the team come over and give you a full

01:49:27briefing about where we are. Great. We would like that and appreciate that and

01:49:32I think there may be some other senators on the committee who would be interested

01:49:36in that as well, so hopefully we can invite them. Let's do it. Okay, well thank

01:49:41you. At this point I will close the hearing. If there are no further

01:49:45questions this afternoon, senators may submit additional questions for their

01:49:49official hearing record and we hope that the department can answer those

01:49:54questions to the extent there are any within 30 days. So now the subcommittee

01:49:59stands in recess until May 23rd when we will have a hearing on the budget

01:50:02requests of the National Aeronautics and Space Administration and the National

01:50:06Science Foundation. Thank you very much, Secretary.

Gina Raimondo Testifies In Senate Appropriations Cmte Hearing On Commerce Dept's FY25 Budget Request

Category

Transcript

Recommended