Leaders of the House Ways and Means and Energy and Commerce Committees sent a letter to the Government Accountability Office (GAO) last night requesting an expedited report on recent trends in prescription drug pricing.

The letter, authored by Rep. Charles B. Rangel (D-NY), Chair of the House Ways and Means Committee, Rep. Henry A. Waxman (D-CA), Chair of the Energy and Commerce Committee, Rep. Pete Stark (D-CA), Chair of the Ways and Means Health Subcommittee, and Rep. John Lewis (D-GA), Chair of the Ways and Means Oversight Subcommittee, comes after recent studies and a New York Times report indicated that the pharmaceutical industry may be artificially raising prices in anticipation of the passage of health reform legislation that could reduce prescription drug prices or price growth.

The letter also requests that GAO submit a proposal to ensure ongoing monitoring of pharmaceutical manufacturer pricing practices.

Click here for a copy of the letter. Click here for a fact sheet on how H.R. 3962, the Affordable Health Care for America Act, protects consumers and taxpayers from these sorts of rapid drug increases.

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The U.S. House of Representatives today approved essential legislation to stimulate the economy and provide stability to American families. The House Passed H.R. 3548, the Worker, Homeownership and Business Assistance Act of 2009 by an overwhelmingly bipartisan vote of 403 to 12. The legislation will help continue America’s economic recovery by extending unemployment benefits for millions of workers looking for jobs, as well as extending, expanding and improving the homebuyer tax credit, and providing tax relief for military families and businesses. Many of the provisions in today’s legislation originated in the Committee on Ways and Means, and Committee leaders offered the following statements upon passage:

“Passage of this bill will give critical benefits to the millions of unemployed workers struggling in the current downturn, giving them some measure of relief while they search for the next opportunity to build a brighter future for their families,” said Ways and Means Committee Chairman Charles B. Rangel (D-NY). “This legislation also extends the homebuyer tax credit and provides tax relief for struggling businesses to build upon recent gains in the housing market and give American companies a foundation for future growth. I am pleased that Congress has united behind this vital assistance to families and businesses and I look forward to President Obama’s signature so this important bill can become law.”

Click here to find out how this legislation will extend UI benefits, homebuyer tax credits, and includes vital tax relief to military families and businesses.

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Congressman Charles B. Rangel applauded the Obama Administration's swift decision to provide emergency aid to Puerto Rico in light of a weekend fire that has caused millions in damages and forced hundreds from their homes.

"President Obama has rightfully stepped in and assured our fellow citizens in Puerto Rico that the economic downturn will not stop us from doing the right thing," said Rangel. "Federal aid will be available to help Gov. Luis Fortuño and other local agencies respond to this disaster.

Rangel said that his office was working with leaders in Puerto Rico and on the U.S. mainland to facilitate relief efforts in the island. Local residents who want to get involved with relief efforts on the island can do so by contacting the Red Cross at 787-758-8150.and Servicios Sociales Católicos de Puerto Rico (Catholic Social Services) at (787) 727-7373.

"Although it's true that we can't personally drive those fire engines and we can't personally distribute aid, there are still lots of other ways in which we can all help," said Rangel.

Rangel said that he and his Congressional colleagues would continue to work to ensure that aid would flow as quickly as possible to the areas affected by the fire, which include the municipalities of Bayamón, Cataño, Guaynabo, San Juan, and Toa Baja.

"We will do all that we can to make sure that our government does not stray from its commitments and that bureaucratic red tape does not impede any relief efforts to the affected area." said Rangel. "We must never forget that our country's strength lies not just in the size of our military, but also in the depth of our compassion."

According to media reports, an explosion at the fuel storage complex in Cataño on October 23rd started a two-day fire that spewed thick, toxic smoke across the Caribbean region, forcing hundreds of people on the island to evacuate.

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Congressman Charles B. Rangel yesterday received the distinguished Order of Jamaica for his outstanding contribution in promoting the interests of Jamaica and the Caribbean.  The award was announced at the National Heroes Day ceremony in Kingston by the Bruce Golding administration.

"I am honored to receive such an award, especially since it is normally presented to a Jamaican citizen.  I have worked for 40 years in the Congress to be a friend of the Caribbean, and it is a good feeling to be acknowledged for this work," Rangel said.

From his earliest days in the U.S. Congress, Congressman Rangel has been a friend to the Caribbean.  He assisted Michael Manley, then-Prime Minister of Jamaica, in influencing U.S. policy away from retaliation after Manley demanded a fair return from U.S. companies mining bauxite in Jamaica. He has fought for the resources Caribbean nations need to combat narcotics and drug-related crimes, and since 1982, he pushed for the Caribbean Basin Initiative (CBI), which promotes closer trade and commercial relationships between the U.S. and the nations of the Caribbean.

Most recently, in 2006 and 2008, Congressman Rangel displayed his leadership in pushing the HOPE II bill, providing trade preferences for the struggling Caribbean nation of Haiti.

The Order of Jamaica is the fourth of the five ranks in the Jamaican honours system. The Order was established in 1969 and is considered the equivalent of knighthood in the British honours system. Honorary membership in the Order can be conferred to any distinguishing citizen of a country other than Jamaica.

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Ways and Means Committee Chairman Charles B. Rangel (D-NY) joined President Barack Obama in calling for an additional $250 emergency recovery assistance payment to seniors, veterans and people with disabilities. The White House's announcement came in anticipation that the Social Security Administration (SSA), because of economic conditions, would not provide a cost of living adjustment (COLA) to beneficiaries for 2010.

“The Committee on Ways and Means is keenly aware of the economic difficulties facing our seniors," said Rep. Rangel. "I support the President’s call to assist America’s seniors during these challenging economic times and look forward to working with my colleagues in Congress to send a bill to President Obama for his signature.”

"These payments will provide aid to more than 50 million people in the coming year, relief that will not only make a difference for them, but for our economy as a whole, complementing the tax cuts we’ve provided working families and small businesses through the Recovery Act,” said President Obama in a prepared statement. "This additional assistance will be especially important in the coming months, as countless seniors and others have seen their retirement accounts and home values decline as a result of this economic crisis."

President Obama singled out Rep. Rangel as he thanked members of Congress for working on behalf of those hardest hit by this recession.

"I want to compliment all the members of Congress who have been working to address these challenges, especially Senators Reid, Baucus, Sanders, and Lincoln, Speaker Pelosi, and Representatives Rangel, McCarthy, and DeFazio.”  said President Obama.

Extending Economic Recovery Payments

The President’s proposal would provide an additional year of the $250 “Economic Recovery Payments” initially enacted under the American Reinvestment & Recovery Act (ARRA). Under this proposal:

•    57 million people would benefit. These include 49 million Social Security beneficiaries, 5 million Supplemental Security Income beneficiaries, 2 million veterans benefit recipients, 0.5 million railroad retirement and disability beneficiaries, and also about 1 million public-employee retirees not entitled to any of the previous benefits.

•    The benefit would be $250 – or equivalent to a 2 percent increase in benefits for the average Social Security retiree beneficiary. Under the rules no person could “double dip” and receive a $250 Economic Recovery Payment through more than one program. Nor could they receive both an Economic Recovery Payment and the Making Work Pay tax credit.

•    The total cost of the proposal would be $13 billion – and would not hurt the solvency of Social Security. The President is committed to ensuring that the $13 billion cost of the proposal does not reduce the solvency of Social Security or other social insurance programs.

•    Would extend an effective relief program. To date Economic Recovery Payments have been made to 55 million people including seniors, veterans and people with disabilities and totaled $13.7 billion. Most of the checks were mailed out in May 2009.

In addition to this legislative proposal, the Internal Revenue Service and the Department of Treasury will take steps this week to prevent reductions in the amounts that workers can contribute to IRAs, 401(k)s, and other aspects of tax-favored retirement systems in 2010 that some feared could result from negative inflation over the past twelve months.

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On the heels of New York City announcing its first issuance of Build America Bonds to fund public projects, Congressman Charles B. Rangel joined Treasury Assistant Secretary Alan Krueger Monday, Oct. 5 to celebrate the successful financing program.

Build America Bonds, written into the Recovery Act by Chairman Rangel and his Ways & Means Committee, grant state and local governments much-needed funding − at lower borrowing costs − for projects like the construction of schools and hospitals, the development of transportation infrastructure, and the upgrading of water and sewage.

The Metropolitan Transportation Authority has already issued $750 million in Build America Bonds, saving the public benefit corporation more than $46 million over the next 30 years.

"These bonds give State and local governments a new, direct injection of capital to jumpstart infrastructure projects that will create jobs and improve our cities and towns," Rangel said at a press conference just outside the 96th Street and Broadway station in Manhattan.

Rangel, joined also by MTA Finance Director Pat McCoy, thanked United Federation of Teachers President Michael Mulgrew, Ciy Council member Gale Brewer, New York State Senator Bill Perkins and members of the Transportation Workers Union Local 100 (TWU) for their support and attendance. He also thanked his fellow congressional colleagues for their hard work in ensuring that the bonds were included as part of last February's economic recovery package, including Ways and Means including Select Revenue Measures Subcommittee Chairman Richard E. Neal (D-MA) and Rep. Earl Blumenauer. (D-ORE).

"Savings like these allow the MTA, and other transportation systems nationwide, to put more individuals to work and pursue more projects that enhance our public transportation system," Rangel said.

The Build America Bonds program allows issuers to sell taxable debt and collect a direct 35-percent subsidy from the Treasury Department, instead of a traditional tax exemption. This opens the market for local government bonds by appealing to a broader set of investors, like pension funds and European investors, who do not benefit from tax exemptions. Municipal bond market professionals have credited the Recovery Act with reviving their market.

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Congressman Rangel, Congresswoman Barbara Lee, and Congressman Jeff Flake released the following joint press release:

Chairman Charles B. Rangel (D-NY), Congresswoman Barbara Lee (D – CA), and Congressman Jeff Flake (R-AZ) today released a GAO report (GAO-09-951R) that outlines the steps President Obama and Congress can take to bring an end to the failed U.S. embargo of Cuba.

“It is our hope that this GAO report will serve as a roadmap to finally reject a failed and outdated policy that has not resulted in any advances for the Cuban or American people," Rangel said. "A thorough rethinking of our policy regarding our nearest Caribbean neighbor is long overdue, and we believe that the time to act is now."

In its analysis, the GAO outlines the extent of the President’s authority to further ease regulatory restrictions, such as those on travel, remittances, gift parcels, and trade with Cuba. The President can ease travel to Cuba for certain purposes such as journalism and scholarship, increase the amount of cash remittances travelers may carry to Cuba, and expand the list of items eligible for gifts.  The President can also ease restrictions currently placed on vessels that have entered a Cuban port.  However, the President cannot suspend or terminate the embargo without the cooperation and support of the Congress.  

“After nearly 50 years, the embargo has failed to defund, destabilize, or weaken the Cuban government. There has been a smooth transition of power to the new Cuban President, Raúl Castro, and with a new Administration here at home, it is time to use this nonpartisan report as a blueprint to bring the Cold War rivalries of the past to a final and long overdue close,” Congresswoman Lee said.

Congress recently eased the strict limits on family travel to Cuba and lowered some of the barriers on trade. In April, President Obama announced a number of changes designed to further ease embargo restrictions on family travel, cash remittances, and gift parcels to Cuba and to facilitate expanded telecommunications between the two countries.

“One would expect the Cuban government to restrict the travel and commerce of its citizens, but for our government to impose similar restrictions on Americans has never made sense,” Congressman Flake said. “After nearly 50 years, it’s time to concede that our current policy toward Cuba has failed.  If we’re serious about hastening democratic reforms in Cuba, we need to try a new approach.”

“The unilateral embargo on Cuba is the most draconian set of U.S. economic sanctions against any country on earth – far exceeding sanctions against nations Iran, North Korea, Sudan, and Syria,” Rangel said.

"The continued enforcement of the embargo hurts Cuban American families, the Cuban people and closes markets for American products.  We look forward to working with the Administration to implement the roadmap outlined in this report,” Lee said.

During the past Administration, President George Bush clamped down on travelers and shipments to and from Cuba.  In 2007, in a report (GAO-08-80) requested by Chairman Rangel and Congresswoman Lee, the GAO found that the increased intensive inspections of travelers returning from Cuba with personal items such as rum and cigars came at the expense of border security focused on terrorists. Bush also tightened restrictions on family travel and reduced the ability of family members to send cash and gifts to relatives in Cuba. 

The new report can be accessed here: http://www.gao.gov/new.items/d09951r.pdf

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Ways and Means Committee Chairman Charles B. Rangel (D-NY) issued the following statement in response to President Barack Obama's address to a Joint Session of Congress this evening on health reform:

"President Obama said what needed to be said at this crucial time, when we are so close to ensuring that every American has access to quality, affordable health care. The media would lead the American people to believe that the distortions of the recent town hall meetings had dampened the spirit of the Congress to move forward with the vigor necessary to pass health reform.

"President Obama did not speak to Congressional Democrats alone tonight; he spoke to the American people, outlining the critical need for a new approach to health care in America. His message of unity and progress could not have come at a better time."

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A new Center on Budget and Policy Priorities (CBPP) analysis released today found that provisions in H.R. 1, the American Recovery and Reinvestment Act, have prevented six million Americans from falling below the poverty line, in addition to reducing the severity of poverty for 33 million Americans.

“Helping struggling Americans is not only the right thing to do for them, but it?s the right thing to do for our economy,” said Ways and Means Committee Chairman Charles B. Rangel (D-NY). “Preventing millions of Americans from falling into poverty is one of the best investments we can make in our Nation?s future. I am proud that we stood up for those who needed us most.”

The report finds that the Recovery Act has prevented more than six million Americans, including two million children and 500,000 seniors, from falling below the poverty line and has reduced the severity of poverty for an additional 33 million Americans,

"We know that difficult economic times have the most profound impact on struggling Americans and the CBPP?s report demonstrates the measurable success of targeted Recovery Act efforts," said Income Security and Family Support Subcommittee Chairman Jim McDermott (D-WA). "We must not forget, however, that nearly 40 million Americans remain in poverty and we have an ongoing obligation to assist these individuals and families who will continue to struggle, even as the economy improves."

The report confirms that the Recovery Act has helped avoid what would have otherwise been a far steeper rise in poverty in 2009. The analysis focuses on seven of the Recovery Act?s many provisions: improvements in unemployment insurance, tax credits for working families, an increase in food stamp assistance, and a one-time payment for retirees, veterans, and people with disabilities.

The analysis points out that these estimates are conservative because it does not include many of the Recovery Act provisions for direct assistance to households ? such as funding for medical services, Pell grants, child support collection, and Temporary Assistance for Needy Families ? as well as the effect of the bill on creating or preserving private- and public-sector jobs.

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Congressman Charles B. Rangel announced Friday that he would be attending the funeral of Sen. Edward M. Kennedy in Boston.

The invitation-only service is scheduled to start Saturday morning at 10 a.m.

"Sen. Kennedy was a dear friend and a tireless champion of what is right and good about this country," said Congressman Rangel. "Though we surely will carry on the fight for those things he cherished, including affordable education, comprehensive immigration reform and quality universal healthcare, its still hard to imagine the Senate or the Massachusetts without him."

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