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Bachus Promotes Financial Services Committee Plan To Cut Deficit By $35 Billion

Brandon Moseley

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By Brandon Moseley
Alabama Political Reporter

The House Financial Services Committee will vote on legislation Wednesday that reduces the deficit by $35 billion.  The plan would help avert “catastrophic” automatic spending cuts to national security.

Rep. Spencer Bachus (R) from Vestavia is the Chairman of the Financial Services Committee.  Rep Bachus said in a written statement: “Our deficits and debt are a threat to both our economic security and our national security.  Congress has an obligation to make tough choices that cut spending, reduce the deficit and do so in a way that does not imperil our nation’s defenses.”

The House Financial Services Committee were one of six Committees directed by the budget resolution adopted by the House last month to approve measures to reduce the deficit so automatic cuts to defense and other discretionary programs can be prevented in January.  The legislation asked Chairman Bachus and the Financial Services Committee to pass cuts of $29.8 billion over the next 10 years in programs and agencies under the Committee’s jurisdiction.  Chairman Bachus and the Committee went further than what was asked of them and have proposed $35 billion in proposed savings according to the Congressional Budget Office.

Ending the Dodd-Frank Act’s “Too Big to Fail” Bailout Fund would save taxpayers $22 billion.  Eliminating a TARP-funded foreclosure program, HAMP, that has been criticized for its ineffectiveness would save $2.8 billion.  Making the Consumer Financial Protection Bureau subject to the Congressional appropriations process would save $5.4 billion while bringing accountability and oversight to the CFPB’s spending.  Chairman Bachus said that reauthorizing the National Flood Insurance Program for five years and instituting reforms would save another $4.9 billion

The Committee will address the deficit reduction package of legislation on Wednesday at 10:00 am.

The Dodd-Frank Act was signed into law in July 2010.  It established a permanent bailout authority to bailout creditors of failed firms. The Act also gave the FDIC additional bailout authority, including authority to lend to a failing firm, purchase a failing firm’s assets, and authority to guarantee the failing firm’s credit obligations.  The FDIC can also “borrow up to 10% of the book value of the failed firm’s total consolidated assets in the 30 days immediately following its appointment as receiver; after those 30 days, the FDIC is authorized to borrow up to 90% of the fair value of the failed firm’s total consolidated assets.”  Rep. Bachus said, “By eliminating these authorities, the Committee is bringing a real end to taxpayer funded bailouts and ensuring taxpayers are never again asked to pay for bad bets on Wall Street.”

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Another element of Chairman Bachus’s deficit reduction proposals is eliminating HAMP.  HAMP is the Home Affordable Modification Program.  Bachus says that “HAMP has proven to be ineffective and failed to achieve any of the Administration’s stated goals.” HAMP was established in 2009 and has cost the Treasury $2.54 billion.  The CBO estimates eliminating HAMP will save $2.8 billion over 10 years.

Rep. Bachus says that the CFPB is accountable to neither the executive branch nor Congress.  The Dodd-Frank Act empowered the Director of the CFPB to set his budget with no oversight from Congress, the Administration or the Federal Reserve.  Subjecting the CFPB to the appropriations process will save an estimated $5.4 billion over ten years.

H.R. 1309 will reauthorize and reform the National Flood Insurance Program.  H.R. 1309 is a five-year NFIP reauthorization and reform bill that passed the House 406-22 on July 12, 2011.  Since September 2008, Congress has passed 11 short-term extensions and allowed the program to temporarily lapse three times. Passing H.R. 1309 will generate an additional $4.9 billion in net income for the NFIP over the next 10 years, according to the CBO.

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Congressman Spencer Bachus represents Alabama’s 6th Congressional District.  Rep. Bachus is seeking his 11th term in the United States Congress.

Brandon Moseley is a senior reporter with eight and a half years at Alabama Political Reporter. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.

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Is “herd immunity” a reasonable strategy for Alabama? Evidence suggests it’s not

State Sen. Del Marsh suggested herd immunity may be the only strategy for Alabama going forward. The science behind such a strategy is still in question, and what evidence is available suggests it may be hard if not impossible to achieve.

Eddie Burkhalter

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(STOCK PHOTO)

Alabama Senate Pro Tem Del Marsh, R-Anniston, on Thursday caused an uproar when he told a reporter that he’d like to see more Alabamians get infected with COVID-19 so that we could “start reaching an immunity.” 

Marsh, a member of Gov. Kay Ivey’s COVID-19 task force, was speaking to a CBS 42 reporter about what’s called herd immunity, which means a percentage of a population gets a disease, gets over it and then has an immunity that prevents them from getting it again for a period of time.

Marsh’s suggestion that herd immunity may be the best, if not the only strategy, for dealing with COVID-19 is not new. It’s been a topic of discussion since the early days of the pandemic. Some countries have even attempted it. But the science behind such a strategy is still in question, and what evidence is available suggests it may be hard if not impossible to achieve.

Reaching herd immunity essentially means that a population is generally protected from the worst of a disease because enough people have immunity. That can be achieved either through a vaccine or by allowing the virus to run its course until enough people have been infected. With more people infected and recovered, and with the assumption that fewer are susceptible to reinfection, transmission of the virus would slow significantly — only because there are fewer people to become infected.

Without a vaccine, herd immunity as a strategy would basically mean giving up on trying to contain the virus.

The topic of herd immunity has been brought up throughout the COVID-19 pandemic, but public health experts and scientists are quick to say they don’t yet fully understand the true strength of acquired immunity, and there have been some cases of people becoming infected with the virus more than once. 

But that doesn’t stop some from arguing perhaps we should give herd immunity a try. Sweden did, and it went terribly, as Alabama’s State Health Officer Dr. Scott Harris told a reporter when asked about the Alabama lawmaker’s statements on herd immunity. 

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Marsh followed his original statement with a caveat about protecting those with pre-existing conditions and the elderly, yet it’s not clear how an open society bent on getting as many younger people infected as possible would do such a thing.

“I’m not as concerned so much as the number of cases, in fact, quite honestly, I want to see more people because we start reaching an immunity as more people have it and get through it,” Marsh said to CBS 42’s Reshad Hudson on Thursday. “I don’t want any deaths, as few as possible. I get it. So those people who are susceptible to the disease, especially those with pre-existing conditions, elderly population, those folks we need to do all we can to protect them.”

In Sweden, where officials initially allowed the virus to run its course, they were not able to protect more vulnerable populations from infection despite efforts to do so. Vulnerable populations do not live in a vacuum, and despite their best efforts to limit exposure, long-term care facilities still have some contact with the outside world.

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It didn’t take long after Hudson tweeted out a video of Marsh’s statements for the backlash to set in. When asked by a CBS 42 reporter for his thoughts on herd immunity as a solution, Harris, the state health officer, said it would lead to many more unnecessary deaths. 

“There is absolutely no reason to think at this point that getting infected will give you any degree of immunity. We simply don’t know that,” Harris said, pointing to the fact that scientists have not reliably determined how long immunity lasts or how strong it is.

“We’ve looked at countries like Sweden, who have tried to actually generate herd immunity among their population, and it’s been disastrous. They’ve had increased numbers of deaths much higher than their neighbors, in trying to keep their economy open. It does not work well at all,” Harris said.

Marsh tried to walk back his controversial statement the next day — sort of — but he still landed back on herd immunity as an avenue Alabama might take. 

“It was a poor choice of words on my end, but ultimately what I was trying to say, and people can look at it, there are very few choices we have,” Marsh told WSFA on Friday.  “Ultimately if there’s no vaccine, herd immunity is the only one I can think of that’s eventually going to take place.” 

In Sweden, where they gave herd immunity a shot, deaths in the country have been eight times higher than in neighboring Denmark and 19 times higher than in Norway, according to The Washington Post. One study found that after months of infections and deaths, less than 10 percent of the population had developed antibodies.

In Denmark and Norway, along with most of the European Union, many restrictions have been lifted because governments there have been able to get the virus under control using testing and contact-tracing.

In Spain, one of the hardest-hit countries in Europe, just 5 percent of people had developed antibodies, according to another study in the journal Lancet. That means that at least 95 percent of the Spanish population would still be susceptible to the virus despite the country recording 28,000 deaths and 250,000 cases.

In New York City, where 32,000 people have died from COVID-19, the state tested some 28,419 people in an attempt to determine how many people had developed antibodies. That survey suggested that roughly 21.6 percent of New York City residents had antibodies. That’s in New York — widely viewed as the hardest-hit city in the world.

The science of herd immunity in a virus as new as COVID-19 is murky, because researchers still don’t know important details about how the coronavirus behaves, and every geographic location is different, with varying cultures and health outcomes, but since Marsh threw it out there, let’s see what getting to herd immunity would look like in Alabama. 

Dr. Michael Saag, an infectious disease expert at UAB and prominent HIV/AIDs researcher, told APR in May that to get the epidemic under control we’ll need at least 70 percent of the population to have immunity. Epidemiologists have estimated that between 60 percent to 80 percent of a population would need immunity before “herd immunity” is reached, and the virus can no longer spread widely in that community.

In Alabama, that would mean 3,340,000 people in total would have to become infected, and at our current approximate death rate of 2.2 percent, that would mean 75,460 Alabamians would likely die in the process. But 1,077 people have already died in Alabama from COVID-19, so to get to a theoretical herd immunity, 74,383 more people in the state would likely die from the virus. The death rate could spike if more infections happen at once, overwhelming the state’s health system.

Because we’ve got statistics on COVID-19 deaths in Alabama, we can look and see what that would mean for those yet to die. Of those 74,383 potential deaths, 58,762 would likely be 65 years of age and older. Those aged 50-64 would make up 12,654 of the deaths to come, while 2,975 would be between 25 and 49 years old, based on current death demographics.

Black people would likely continue to die in greater numbers per capita than white people. Although Black people make up just 27 percent of Alabama’s population, they make up 44 percent of all COVID-19 deaths.

It’s important to note that none of these estimates are reliable because researchers still don’t know for certain how long a person is immune after recovering from the virus — and how strong that immunity is. It’s also not clear how accurate or precise antibody tests are.

Columbia University virologist Dr. Angela Rasmussen told The New York Times that the “magical number of 60 percent for herd immunity” assumes that everyone infected has complete protection from a second infection.

“But what about people with partial protection?” she asked. “They may not get sick, but they can get infected and pass it along.”

The recent study in Spain published in The Lancet found that herd immunity with COVID-19 may be unachievable. The study, which looked at more than 61,000 people, found that 14 percent of those who tested positive for coronavirus antibodies, which means they had the virus and recovered, no longer tested positive for the antibodies in subsequent tests weeks later. 

“Immunity can be incomplete, it can be transitory, it can last for just a short time and then disappear,” said Raquel Yotti, the director of Spain’s Carlos III Health Institute and one of the authors of the study, according to Reuters.

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Alabama DHR announces grants providing temporary assistance for stabilizing child care

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The Alabama Department of Human Resources announced on Friday a new grant program to provide assistance to licensed child care providers in the wake of the COVID-19 pandemic.

The Temporary Assistance for Stabilizing Child Care, or TASCC, grant program’s purpose is to stabilize the number of child care providers that are open and providing services, as well as encourage providers to reopen.

DHR is now accepting applications for TASCC grants. The deadline to apply is August 7, 2020. The total grant amounts will be based on each provider’s daytime licensed capacity with a base rate of $300 per child.

To be eligible for a grant, licensed providers must be open or plan to reopen no later than August 17, 2020, and continue to remain open for a period of one year from the date of receiving the grant award. As of this week, 1,306 of Alabama’s 2,448 child care facilities were open in the state.

“We are proud to offer this program as a support and an incentive to an important sector of our economy. These grants will give the support many providers need to reopen and assist those already open,” said Alabama DHR Commissioner Nancy Buckner. “This program is going to be vital for our child care numbers to reach the level required to provide adequate services as parents return to work. We have already made significant strides in reopening facilities over the past several months; in April only 14 percent were open while now 53 percent are open.”

These grants will provide support for paying employees, purchasing classroom materials, providing meals, purchasing cleaning supplies, providing tuition relief for families, as well as other facility expenses.

DHR recommends child care providers read all guidance prior to submitting a TASCC application. Child care providers need to complete the application to determine the estimated grant amount. Grant applications will be processed as they are received and grants awarded once approved.

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An online fillable application is available for the TASCC grant at www.dhr.alabama.gov/child-care/. The application must include an Alabama STAARS Vendor Code in order to be processed. For questions regarding the application, please email DHR at [email protected].

 

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Gov. Ivey awards grant for new system to aid child abuse victims

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Gov. Kay Ivey delivers the 2019 state of the state address. (CHIP BROWNLEE/APR)

Gov. Kay Ivey has awarded a $375,000 grant to establish a statewide network that will ensure that victims of child abuse receive immediate and professional medical care and other assistance.

The grant will enable the Children’s of Alabama and the University of Alabama at Birmingham Department of Pediatrics to collaborate with the Alabama Network of Children Advocacy Centers in creating the Child Abuse Medical System.

 “Child abuse is a horrendous crime that robs children of their youth and can negatively affect their future if victims do not receive the proper professional assistance,” Ivey said. “I am thankful for this network that will ensure children get the professional attention they need and deserve.”

The medical system will be a coordinated statewide resource that includes pediatric physicians, nurse practitioners, nurses and other medical professionals along with specialized sexual assault nurse examiners.

The Alabama Department of Economic and Community Affairs is administering the grant.

“ADECA is pleased to join with Gov. Ivey and those dedicated people who are part of the Child Abuse Medical System to support these children at a time they need it most,” said ADECA Director Kenneth Boswell.

Ivey notified Tom Shufflebarger, CEO of Children’s of Alabama, that the grant had been approved.

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ADECA manages a range of programs that support law enforcement, economic development, recreation, energy conservation and water resource management.

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U.S. Attorney Jay Town announces resignation

Eddie Burkhalter

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U.S. Attorney Jay Town announced his resignation Friday. (WHNT)

Jay Town, the U.S. attorney for the Northern District of Alabama, on Friday announced his resignation and plans to work at a Huntsville defense contractor and cybersecurity solutions company. 

Town’s resignation will be effective Wednesday, July 15, according to a press release. 

“After much thoughtful prayer and great personal consideration, I have made the decision to resign as the United States Attorney of the Northern District of Alabama.  I have tendered my resignation to Attorney General William Barr. General Barr expressed his gratitude for my service to the Department of Justice and to the Northern District and, despite having hoped I would continue in my role, understood and respected my decision,” Town said in a statement. 

“I am extremely grateful to President Trump, to whom I also tendered a letter, for his special trust and confidence in me to serve as the U.S. Attorney. It was an honor to be a part of this Administration with an unrivaled class of United States Attorneys from around the nation.  I will forever remain thankful to those who supported my nomination and my tenure as the U.S. Attorney,” Town continued.

Town said his job with the unnamed Huntsville defense contractor and cybersecurity solutions company is to begin later this year, and the company is to announce his position “in a few weeks.” 

“The Attorney General of the United States will announce my replacement in the coming days or weeks,” Town said in the release.  

Town has served in his position since confirmation by the U.S. Senate in August 2017. Prior to that appointment, Town was a prosecutor in the Madison County District Attorney’s office from 2005 until 2017.

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Attorney General William Barr in a statement Friday offered gratitude for Town’s three years of service. 

“Jay’s leadership in his District has been immense.  His contributions to the Department of Justice have been extensive, especially his work on the China Initiative and most recently as a Working Group Chair on the President’s Commission on Law Enforcement and the Administration of Justice. I appreciate his service to our nation and to the Justice Department, and I wish him the very best,” Barr said in a statement.

The U.S. Justice Department in April 2019 notified Gov. Kay Ivey that the department’s lengthy investigation into the state’s prisons for men found systemic problems of violence, sexual assaults, drugs and corruption which are likely violations of the inmates’ Constitutional protections from cruel and unusual punishment. 

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Town’s office leads the discussions between the U.S Department of Justice and the state on the prison conditions. 

Problems with violence, deaths and drugs in Alabama’s overcrowded, understaffed prisons have not markedly improved in the year’s since the U.S. Department of Justice released its report.

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