Transcripts For CSPAN Executive Nominations 20170615

The next chair of the council of economic advisers. His is an hour and 25 minutes. We will consider the nominations of Kevin Hassett to e the chairman and honorable patenaude as the deputy secretary. We will begin with an Opening Statement by me and senator brown and turn to senator ortman, who will introduce the witnesses. And senator shaheen, who will introduce ms. Patenaude. I see friends and family behind you as well and i see my good friend, bob dole, at least i did a minute ago and we welcome him here. Each of these nominees stands to impact the standard of living for americans across the country and will play an Important Role in spurring economic opportunity. Positions inas had academics, education and policy. He is an expert on Economic Policy and contributed countless papers, commentary and testimony. His nomination has received bipartisan support from economists including past c. E. A. Chairman. His understanding of tax policy and the way it feablingts citizens and businesses will be aning valuable asset to the administration. He has extensive experience with Economic Modeling and will provide sound Economic Analysis for progrowth policies. Key to Economic Growth is not only robust Financial Markets but also economic policies that will enable americans to unlock their potential. I look forward to hearing from him on how Economic Analysis can play a role in achieving this goal. Ms. Paenaude has held leadership roles at the local and federal lovely. 12 years, she received unanimous support from this committee and was confirmed by the senate with a voice vote to become assist ant secretary for Community Planning and development at as a former leader in a local housing agency, she has on the ground experience and developed an important understanding of the impact h. U. D. s policies have on local partners. Ms. Patenaudes nomination has been met with bipartisan support as well from industry leaders, Affordable Housing advocates and Public Housing agencies alike. This speaks to ms. Patenaudes distinguished reputation and her commitment to addressing important housing issues. I look forward to working with ms. Patenaude on opportunities to improve the efficiency of h. U. D. Programs, reduce regulatory burdens on local housing authorities, leverage more private capital, empower local decision making, encourage selfsufficiency, and address comprehensive Housing Finance reform. At this time i ask unanimous consent to enter into the record two letters endorsing mr. Hassett, one of which is signed by 44 economists from both sides of the aisle, including several Top Economists from the obama dministration. Without objection, so ordered. I also ask unanimous con sent to enter into the record more than 30 letter showing bipartisan support for ms. Patenaude, including a letter signed by former majority leaders bob dole and george mitchell. Without objection. So ordered. Congratulations to both of you on your nominations to these very important offices and thank you for your willingness to serve. Senator brown. Mr. Brown thank you, mr. Chairman, mr. Hassett, ms. Patenaude, welcome. Senator shaheen, senator portman, nice to see you too. Thanks for holding this hearing. I look forward to hearing the views of the two witnesses on important areas of the committees jurisdiction. The economy, housing, Community Development. Ms. Patenaude comes to us with a long resume of involvement with housing and Community Development programs. H. U. D. Management and housing advocacy. More recently shes headed the foundation for housing americas families. In a report entitled the silent housing crisis, the foundation reported that having access to safe and Affordable Housing has long been recognized as a part of americas critical compact which its citizens. I look forward to hearing her views, particularly since her past advocacy seems at odds with the approach that h. U. D. Has taken in its budget proposal. Mr. Hassetts a respected economist. Hes done important work related to the policies that drove manufacturing out of ohio communities and others like it across the country. I hope that his work will focus on policies to create jobs and improve education and work force development, and actually rebuild infrastructure. Thats whats needed to strengthen the economy. Instead weve seen the administration threaten wall street reform, attempt to take away Health Insurance from 23 Million People. I appreciate my colleague from ohio speaking out on the medicate cuts. Target working americans with steep budget cuts and crease debt, all to further the interests of the wealthiest americans. The administrations h. U. D. Budget proposal is a stark illustration of this agenda. 11 millionent rent renters, as ms. Patenaude and discussed in my office and shes so very aware of this. 11 million renters pay over half their income in rent. Meaning one thing goes bad in their lives and they are evicted. They lose their their children have to go to a different school. Everything turns upside down. 11 million renters. I want you always to remember that. 11 million renters pay half their income in rent. 5,000 people are homeless. The president s budget would cut 7 billion, 15 , from the h. U. D. Budget. The budget would eliminate programs like Community Development block grants and cut funding for Public Housing repairs by 70 . We all know the condition of Public Housing. And to cut their funding for repairs by 70 , to eliminate funding for an estimated 250,000 housing vouchers next year, it reduces funding for lead hazard control, in healthy housing grants to protect children from lead poisoning, from asthma and other problems. Senator portman knows in cities in my state in housing built before senator portman and i were born, that the lead content, the lead exposure in those homes are overwhelming. In some cases, according to the health department, 99 of those homes have toxic levels of lead. Five months ago in this room, dr. Carson scoffed at the notion that he would support a 10 cut in the h. U. D. Budget. He said he understood from his experience as a pediatric neurosurgeon how it was far less costly to avoid lead poisoning than to treat it. I was one of five or six democrats that voted for his confirmation. On the floor of the senate. I did that because of his personal and his public promises on lead. This budget, which apparently hes defending, and thats one of the things we want to hear from you, ms. Patenaude, his budget is undermines all of this. The broken promises dont end there. The president promised on the campaign trail, in toledo and across the country, to revitalize our inner cities and rebuild infrastructure. Id hope wed be able to work with the administration to strengthen our nation while providing good jobs in ohio. Instead the president proposes to cut more existing infrastructure programs than the 200 billion hes willing to invest. The h. U. D. Budget will only add to the struggles of our inner cities. I look forward to hearing from our two witnesses how we tackled many challenges that face our country. From the crisis of Housing Affordability for our families and seniors, to the stagnant wages that employment prospects are far of far too many of our americans. Now well turn to senator portman to droosedroo mr. Hassett. Mr. Portman thank you, mr. Chairman, for letting me do this. I thank my colleague from ohio, my friend who just spoke. The Ranking Member. Its a pleasure to introduce Kevin Hassett. He, as you know, is being nominated as chairman of the council of Economic Advisors. Im delighted to see hes brought his own team of advisors with him today. His sons, jamie and john, and his wife, christie. Who is the chair by the way of that council . Christie that would be me. Mr. Portman christie is the chair. Weve known each other a long time. Kevin hassett and i served together in the first Bush Administration. George h. W. Bush. He was in the treasury department. I was the director of the White House Office of legislative affairs. And i got to know him and respect him. He continued to serve as a policy consultant for the treasury department. Under the clinton administration. I went on to the house and the ways and Means Committee where i looked to him to provide tried to ounsel as we reform the tax code. The chairman mentioned thats one of his specialties. Im pleased hes being nominated for this position in part because of the need to fix the broken tax code. He has a lot of respect by economists from both sides of the aisle. His predecessor as chair of the council of Economic Advisors, jason furman has called him an excellent pick. Hes also been endorsed by Obama Administration economist austin, peter orszag and christina roamer, all of who you all know. He served as a senior economist as an Economic Advisor to five major president ial campaigns. In particular i want to point out that hes an expert on tax reform. I think this is going to be incredibly important to us and his focus has been on how to have a tax code that gets rid of some of the loopholes and some of the preferences for special interests and a simpler tax code with lower rates. And i think that again is what we need to get the economy moving. What hes shown is that if you can fix a tax code in that way, the major beneficiary would be the middle class families. Wages are flat right now and the best thing to do to get wages up is actually to reform the tax code. I think thats really important research. The middle class squeeze at that thank too many of our constituents are feeling is something we can address through number of ways. Hes the right person at the right time, mr. Chairman. I think as chairman of the council of Economic Advisors, the difficult task of tax reform among other things will be much easier. So thank you very much forgiving me the opportunity to say a few words this morning about mr. Hassett and i strongly support him and i hope the committee will send him to the floor. Thank you, senator portman. Now, senator shaheen, would you please introduce ms. Patenaude. Ms. Sheaporter thank you, mr. Chairman mrs. Shaheen thank you, mr. Chairman. Stater, pat ranite patenaude, to serve as the deputy secretary of the department of housing and urban development. What i have to say is probably overkill. After your comblowing review of her resume glowing review of her resume, mr. Chairman. But ms. Patenaudes experience in housing policy goes back nearly 3 1 2 decades. Beginning with her work in New Hampshire at the New Hampshire Housing Finance agency. That was followed, as you pointed out, by services white house liaison at h. U. D. In the reagan administration. Pam and first got to know each other when i was governor and she served in a succession of high level positions. Director of New Hampshires Small Business development centers, the deputy chief of staff and later state director for then senator bob smith of New Hampshire. D assistant deputy secretary of h. U. D. As you pointed out, she later served as h. U. D. Assistant secretary in the office of Community Planning and development. As an executive with the urban land institute. What impressed me always about pam is that she understands that access to Affordable Housing and a safe place to call home is the foundation of families and strong communities. And throughout her career, shes been engaged in these challenges as a thinker, a leader and a problem solver. And i have a special especially appreciated her ability to bring together disparate stakeholder groups, to forge bipartisan agreements in the housing arena, and that shes personally dedicated to the core mission of h. U. D. Including the challenge of bringing opportunity, as you pointed out, senator brown, to americas most disadvantaged urban communities. I think our nation is fortunate to have someone of pams high caliber who is willing and eager to serve in this position in the federal government. And i hope that members of the committee will agree with me that her experience and expertise makes her superbly suited to serve as deputy secretary at h. U. D. Thank you, mr. Chairman. Thank you, members of the committee. Mr. Crapo thank you very much, senator shaheen. We appreciate that introduction. Now before we begin your testimony, id like to place both of the nominees under oath. So would you please rise and raise your right hand. Do you swear or affirm that the testimony you are about to give is the truth, the who will truth and nothing but the truth, so help you god . And do you agree to appear and testify before any duly constituted committee of the senate. Thank you very much. You may be seated. Mr. Hassett, you may proceed. Each of you may take a few moments, which we wont take away from your time, to introduce any members of your family you may wish to droofment introduce. Mr. Hassett thank you very much for the kind introduction. Truly committee, im humble and honored to be before you today as president trumps nominee to be the chairman of the down civil Economic Advisors. Im also deeply grateful to have had a chance to get to know many of you throughout this process. I wish that the people who worry about washington could have witnessed the many private kindnesses that the members of this committee and staff have extended to me in the last few weeks. Id also like to begin, as you invited me to, by introducing my College Sweetheart and wife of 31 years. Christie hassett. And next to her are my sons, john and jamie james, who are sitting behind me. Id also like to acknowledge my father, john whombings a korean war veteran. But could not be here today. And my mother sylvia and my sister julia, who are no longer with us. Senators, ive almost always been a student of economics even before i knew. It i was raised by two Public School teachers in the beautiful town of greenfield, massachusetts. My mother was a kibter garden teacher consistenter and goen teacher. My father taught high school. As i was growing up, my town went through a very painful transition. For the longest time greenfield was a thriving mill town with a dye operation that employed thousands of citizens. A neighboring area was almost as prosperous. Housing a massive paper mill along the banks. Connecticut river. But as we got older, times were changing. Plants closed. Families started moving away. Graduates stopped coming home after college. It seemed impossible to look around and not wonder what was happening to my town. When i started studying economics in college, and again in graduate school, i always came back to the example of how my town changed. Why did plants move away or close . Why did many of the good jobs disappear . Is there something that policymakers can do to restore prosperity . Economic models suggest a simple answer. Workers can have high wages if they have high productivity and high producttive itity is enabled by an example supply of capital. Going from things that work in textbook models to actually policy recommendations is a difficult thing. The real world has many complications that are not included in the models and data often surprises economists, especially those who have too much confidence in their theories. That observation led me over the years to focus on things that can be learned from the data. My dissertation focused in part on how wages move over the business cycle. What do the periods when workers prosper have in common . My early career was spent studying how firms Investment Decisions respond to government policy and how labor and capital interact. Since then my studies have taken me in many different directions. My record makes clear a few things i would like to emphasize about my approach to economics. First, i believe its essential to gather evidence and not just rely on theory. Early in my career, the Empirical Literature on taxation contained many holes, often because the country by country data were not available. My cocauth coauthors and i responded to this by building a tax database and making its Data Available to anyone who wanted it. Which leads me to my second point. I believe that Economic Analysis should be transparent and recommend cabble. An example of my commitment to this idea is the open Source Policy Center, which i cofounded at the American Enterprise institute. The ospc has open Source Computer code that allows anyone to score tax plans. Evaluate the distributional consequences of that plan. And see what the assumptions are that others use when they score their own plans. The ospc promises to democratize tax debate. Finally, while i respect the needs for all types of research, my own focus is work that holds the promise of improving the lives of others and that sheds light on the circumstances of those less fortunate. Like those in my hometown who lost their jobs when i was growing up. A recent example of this would be my work with the economic innovation group, where i explore the causes and cures of the striking geographic inequality that we see in america today. E. I. G. Researchers have worked hard to identify and measure distress. Fand constructed, publicly available data sets that shed light on communities around the country that most need our help. Theres an interactive map even that helps people explore their own communities, with a dark color red indicating extreme economic distress. One of the reddest shapes on the map in massachusetts is turners falls, the town across the river from my dads house, where the paper mill closed. The council of Economic Advisors was created to provide the president with professional and objective economic advice, to help policymakers Craft Solutions for problems like those we face today. Throughout history, the c. E. A. Has done so admirably, during both administrations. In 2009, then nominee christina roamer told this committee that she would do her, and i quote, utmost to protect the integrity of the c. E. A. And make it a center for unbiased, scientific analysis. Chairman crapo and members of the committee, if confirmed i pledge to you that i would do the same. And that i would enthusiastically and energetically take the helm of this Great American institution. Thank you. Mr. Crapo thank you, mr. Hassett. Ms. Patenaude. Ms. Patenaude thank you, chairman crapo, Ranking Member brown, and distinguished members of this committee. It is a great privilege to appear before you this morning. I am deeply honored by president trumps decision to nominate me as the deputy secretary of the u. S. Department of housing and urban development. I also want to thank senator shaheen for her very thoughtful introduction. And a special thanks to my dear friend, senator bob dole, for joining us this morning. Mr. Chairman, if i may take a moment to introduce my husband and our three daughters. Chuck. And of 32 years, kaitlin, theyre out of order here. Megan and jennifer. And also want to recognize my niece, kristen hughes, who is also here with us today. And the many friends who are sitting behind me showing their ove and support. Housing has always been close to my part and part of my family heart and part of my family history. My late parents together ran a successful Home Building business in New Hampshire. In the hughes household, there was simply no escaping talk about housing. For that reason, it was no surprise to my parents when i came to share their passion for housing. As a senior at college, i experienced our nations capital, as Many College Students do, as an intern. I never imagined that that internship at h. U. D. Headquarters 35 years ago would launch a career that continues to energize, challenge and inspire me. Upon graduation, i administered the section 8 rental Assistance Program at the New Hampshire Housing Finance authority, where i observed firsthand the transformational impact that h. U. D. Programs could have on improving the quality of life for seniors and our most vulnerable citizens. During my career, ive also served at h. U. D. In several leadership roleses. As assistant deputy secretary for field policy and management i restructured h. U. D. s critical Field Operations and contributed to the development of the fiveyear Strategic Plan. As assistant secretary for Community Planning and development, ied a myrrh ministered more than 8 billion in Community Economic development and Affordable Housing funds and managed a team of more than 800 experienced professionals committed to carrying out h. U. D. s mission. Outside of h. U. D. My careers focus the on promoting housing policies that are aligned with the significant and changing needs with of the american people. Of the american people. At the urban land institute, i established the center for work force housing. To draw attention to the plight of americas most essential workers. Firefighters, police officers, nurses and teachers. Who are too often priced out of the communities they serve. At a policy center, i directed the Housing Commission under the steadfast leadership of three of your former colleagues. Senator george mitchell, senator bond, and senator martinez. As well as former h. U. D. Secretary henry. The commission developed a comprehensive report outlining a new direction for federal housing policy. Currently i serve as the president of the j. Ronald twill ger foundation for housing americas families where we seek to elevate rental affordability and educate policymakers about the silent housing crisis in america. Through these initiatives i have developed strong working relationships with diverse groups, diverse members of the housing community. Affordable housing advocates, homebuilders, mortgage bankers, government policymakers and academics. I am proud to say that bipartisan collaboration has been a hallmark of these initiatives. My career in housing at the local, state and federal levels of government and in the private sector have broadened my view of americas housing policies. This unique perspective enables me to nled the factors that contribute to the success of some programs, as well as the facts that are diminish the well intended impacts of others. It was articulated in evicted, we have failed to fully appreciate how deeply housing is implicated in the creation of poverty. It is believed that powerful solutions are within our collective reach. I agree with that. I believe that as a nation we must recognize that housing is not just a commodity, but a foundation for economic mobility and personal growth. If confirmed by the United States senate, i pledge to work closely with this committee, with congress, and with secretary carson to develop new solutions to address the Affordable Housing crisis in america. And to implement the Critical Mission of the u. S. Department of housing and urban development. Committees he thoughtful consideration of my nomination. Thank you, mr. Chairman. Mr. Crapo thank you very much, ms. Patenaude. My first question, i mean brief here, because i only have five minutes. But id like you each to briefly, like within 60 seconds, to take a minute to discuss what your Top Priorities will be as you are confirmed. Mr. Hassett. Mr. Hassett senator, thank you for the question. If confirmed my First Priority would be frankly to recruit a lot of economists. Because the council of economic advicers has a proud that advisors has a proud tradition of recruiting folks to come to washington to provide unbiased, scientific objective advice to the president. And unlike a lot of agencies, the council of Economic Advisors turns over a lot. And so there are new people coming to town to serve their country all the time and if confirmed that would be the very first order of business for me. Because the staff probably would go from around 35 to 10, were we not to start recruiting. The second thing i could say, a very high priority for me, to increase the transparency of the modeling and the communication that goes on in all of the economic communication of the administration. So i would like to take the work that ive done at the open Source Policy Center and at e. I. G. Where weve made these interactive maps and bring that spirit of transparency to the c. E. A. Mr. Crapo thank you. Ms. Patenaude. Ms. Patenaude thank you, mr. Chairman. First thing id like to do is to hear what the secretary has learned during his first 100 days, during his listening tour. From my past experience, i know like to do that i need to certainly assess the Human Capital needs and the operations needs of the department. And i look forward to working with the secretary on developing a Strategic Plan based on his priorities and those of the administration. Mr. Crapo ms. Patenaude, ill stick with you. With regard to you, ms. Patenaude, theres actually several priorities i have. Theres been a bipartisan interest in addressing a number of important issues in the housing space. Such as streamlining regulatory requirements for smaller p. H. A. s, increasing the role of private capital and financing Affordable Housing, and creating a new, sustainable Housing Finance system. I dont need you to talk about these. I just want to know, would you agree to prioritize those . And work with us as we seek to achieve those objectives . Ms. Patenaude yes, mr. Chairman. Mr. Crapo thank you very much. Mr. Hassett, my question for you is in the space you just referenced. You have extensive experience with Economic Growth modeling and evaluating the Economic Impacts of policy. You mentioned youd like to prioritize getting that more transparent and i assume out here, understood and used. Vears growth estimates have been discussed recently in the context of tax and budget and other reforms. In your opinion, is 3 growth a reasonable target . Fand so, please explain what policies would be needed to reach that goal. Mr. Hassett thank you very much. The 3 growth is something that used to. Used to be that was the rule rather than the exception. But growth comes basically, if you want more output, ultimately from more inputs. Historically weve had a lot of labor force growth, Capital Stock growth and technological innovation that have driven growth up to around 3 . All three of those factors have been very disappointing for some time now. We had the computer revolution in the 1990s. That slowed down. Capital formation in the late 1990s was contributing about 1. 2 per year to growth. Right now its about. 4 or. 5 . And so and the labor force growth, of course, has been disappointing as well. If we want to go from the 2 or so growth that weve been experiencing to 3 , then were going to have to get those three things moving. And the thing that ive researched the most throughout my career is capital. Capital investment, how it affects workers and how to get it going. I think its absolutely possible to return to place where could you get 3 growth, if we design policies in a way that would encourage Capital Formation in the United States. Mr. Crapo thank you. I would assume that would include some comprehensive tax reform. Is that correct . Mr. Hassett thats correct. I think this estimate was a little bit high but there was a survey at the National Bureau of Economic Research a number of years ago where a bunch of economists were surveyed about the impact of the 1986 tax impact. The median estimate of the Economic Growth they said was 1 per year. If youre thinking about how can we get from 2 to around 3 , then tax reform is certainly part of the one of the tools we would want to use. Mr. Crapo thank you very much. Senator brown. Mr. Brown thank you, mr. Chairman. Ms. Patenaude, thank you again for being here. In your work, you cited stagnating wages, a weak economy and, quote, the acute shortage of rental homes that are both affordable and available to those households with the lowest incomes, unquote. Is factors as factors in the rental affordability crisis we see today. This indicates you believe broad Economic Trends are contributing to the current shortage of affordable rental housing, is that correct . Ms. Patenaude thats correct. Mr. Brown you mentioned matthew desmond. That, quote, we have failed to fully appreciate how deeply housing is implicating the creation of poverty. When he came to see a group of us in the senate one day, i asked him to meet with a number of senators, when he signed his book, he wrote, home equals life, understanding as you do in our discussion that i know you believe that families turn upside down in so many ways if they dont have a stable, affordable home. When i quoted him just now, we failed to fully appreciate how deeply housings implicated in the creation of poverty. If you believe what he wrote to be true, then the h. U. D. Budget, if adopted, wouldnt it create additional poverty . Ms. Patenaude i was not involved in the proposed budget in any way, shape or form. I very much appreciate and understand the role of congress in formulating the budget and look forward to working with this committee. Mr. Brown but youre going to be, lets just put it jemplejeptly, your knowledge and expertise far exceed yurs boss. I think thats generally believed. You may not want to agree with that. He will be listening to you. What will you say to him about this budget . That these kind of cuts, far comm excess of what he said he would support when he was in front of us a few months ago, what do you argue with him . What do you say to him . Ms. Patenaude ive not had a conversation about the budget with secretary carson. Hes going to testify mr. Brown my question is what will you say to him once confirmed . Ms. Patenaude as a life long howser, i think you can count on me that i will advocate for programs that programs work and are effective going forward. Does that mean you dont agree with the president s budget cuts . Ms. Patenaude no. As the president s nominee i support the president s budget. Mr. Brown but youll advocate for adequate does that mean you dont agree funding of these programs that you know work . Ms. Patenaude going forward, if im confirmed by the United States senate, yes. Mr. Brown ok. I dont know how you support the president s budget cuts. But you support Adequate Funding for these programs that work. Can you explain that to me. Ms. Patenaude to clarify, i did not say the specific amount on what i would advocate for. But certainly there are programs that have been very effective at h. U. D. And along with that i would be making, i can imagine i would be making recommendations to streamline some of these programs. Im very hopeful that well come up with new solutions, working with this committee and your staff. To address the changing Housing Needs in this country. Mr. Brown thank you. I want to give a moment to your partner there. A little over a decade ago there was a debate over whether the Economic Growth rate assumed by the Social Security trustees was too pessimistic in line with chairman crapos question, you coauthored a pape aer that defended that rat rate. 1. 9 over the more optimistic 3 growth rate that wed experienced. Part of your reasons was prudent planning for the future should place more weight on the down side risk than the upside potential. Now that its conservatives who want to assume their way to balance, do you believe a 3 growth rate over the next decade really is warrant . I hear your comments, but when the consensus among the fed, the blue chip forecast and the Kevin Hassett of 2006 is on the order of 1. 9 . Mr. Hassett i dont want to take up too much time. But for sure if we dont change policy, we can expect to stay around 2 . I think if you look at the blue chip forecast, they dont envision the kind of sweeping tax changes that we experienced in a bipartisan fashion in 1986. That have been proposed mr. Brown if i can interrupt, sorry. So that 3 is really contingent on getting real tax reform, not just a tax cut. You know from your years in the bush years that two significant tax cuts went overwhelmingly to the wealthy and there was literally zero private sector net job growth in those eight years. Youre arguing that only if we do real tax reform, not just tax cuts, but real tax reform can we get anywhere close to the assumed 3 . Mr. Hassett i think youre arguing that thats fair. Mr. Brown let me take the last three seconds, sorry, mr. Chairman. I want to talk about lead for a second. Because of your boss as the secretary of h. U. D. s comments as the nominee, nominee carson rather than secretary carson. Im particularly troubled by the proposal on reducing funding for h. U. D. s lead grants and eliminate home and cdbg used for home repairs and other activities. As i mentioned briefly, most of the homes in cleveland, most of the homes in appalachia, most of the homes in dayton and cincinnati and youngstown are at least 50 years old. The head of the Cleveland Health Department Said literally 99 of those homes have toxic levels of lead. Share your thoughts on the effects of childhood lead poisoning in this country and the role that h. U. D. Can play to eliminate it. Ms. Patenaude thank you, senator. I appreciate hearing your concerns. Yesterday dr. Carson proclaimed june Healthy Homes month and he released a video. I did not watch the entire video because i was preparing for todays hearing. But the video addresses lead. So i believe that secretary carson is very committed to this issue and will continue to be. The budget, as i understand it, it was level funding until the omnibus. So under the c. R. , that level of funding is what was requested in the proposed budget. It was not until after the omnibus was passed that it actually became a cut. But i think the level of support is significant. Mr. Brown thats matter of opinion. The original cdbg proposal was deep cuts. Mr. Crapo thank you very much. Senator corker. And remind my colleagues to hang in there with the fiveminute rule. Yes, sir. Cork cork just want to get ready mr. Corker just want to get ready before my five minutes. [laughter] hadnt started yet. Ms. Patenaude, i want to thank you for your willingness to serve. We had a very good meeting in our office. Numbers of people that ive worked with in housing speak very highly of you. I look forward to your confirmation. Mr. Hassett, your wonderful familys here and i know youre one of the nicest folks ive met coming through. I know that when we met on the other hand, by the time the meeting was over, my temperature was about to take my head off as i thought about the fact that think tanks that youve been a part of, so many think tanks here in our Washington Community make the perfect the enemy of the good. And really can be very destructive. Very destructive. As we discussed. As we try to move ahead and actually pass legislation that accommodates some commonality on both republican and democrat side. Actually the think tank that youve been a part of has played a big role in trying to undermine actually bipartisan efforts that weve put together here on the committee. You and i discussed that fully. As i thought about it, i thought about a person coming into the white house that had been, quote, in an ivory tower, if you will, sitting over at a think tank. Writing perfect things in a perfect world. I then began to request whether someone like you would question whether someone like you would even be good in this position. Let me say this as my temperature cooled down, and i thought a little bit more about your past, obviously youre qualified for this job. But can you talk with me a little bit about the role that youll be playing there and hopefully share a little bit of understanding about the fact that we live in a world where we represent 320 Million People here and sometimes economists sitting over in a think tank that have nothing in the world to consider but perfect dont always help us in a constructive way as we try to move the country ahead. Mr. Hassett thank you, senator. Thank you for your time in your office. I can tell you that i think a hallmark of my career is that i have never been that person who says that the perfect is the only thing that you should do and if you dont do that, then youre someone who is a traitor. To economic. In fact, i think that ive worked collegially with people on all sides and pretty much every issue that ive ever been involved in. That i at the council of Economic Advisors in particular the role of the c. E. A. Is to provide objective advice about what Decision Makers do. In governing, a lot of decisions have to be made urgently and we need expert analysis to inform those decisions. Someone who says, well, in a perfect world, with perfect markets, heres what you ought to do and if you do anything else cork thats not what people say mr. Corker thats not what people say. They just say, this is the only way for it to occur because the perfect is the enemy of the good. Theyre sight ining in a perfect world. Theyre actual saying in a not saying in a perfect world. Theyre actually undermining legislative processes that have to take into account, you know, different temperaments, if you will. Different values that are part of democracy. So it wasnt really that. It was really just the straight undermining of bipartisan efforts here on the committee. Mr. Hassett sir, at the American Enterprise institute there are people with very strong opinions and they dont take my advice about what their opinions should be. But i can assure you that thats not the way i would behave. Mr. Corker who would you report to there . Mr. Hassett the president , sir. Mr. Corker not to gary cohn, but to the president. Mr. Hassett the council of Economic Advisors was established in 1946. By statute its quite clear. Mr. Corker you wrote a book in 1999 about dow 36,000. By 2009 it was at 10,428. What happened . Mr. Hassett i think that one critic of mine once looked at that book and called it a youthful indiscretion. I think as that goes, it wasnt such a bad one. I think the motivation of the book then was to make sure that people understood how to think about equities and how important it was, if you can be a longrun investor, to invest in equities. Because theyre a good investment in the long run but not in the short run. I think that looking back, folks that bought and held were glad that they did. Cork another president has said mr. Corker another president has said some things about trade. Youre a full blown free trader, is that correct . Mr. Hassett historically, yes, thats right. Mr. Corker he also mentioned things about hedge fund taxation. Youre a low carried interest rate, carried rate person on hedge funds. Could you expand on what . Mr. Hassett ive written one piece on carried interest. Its in the journal of tax notes, coauthored by a fellow economist at a. E. I. We analyzed the law of carried interest taxation and how it rlt relates to partnership taxation. I think one of the main points of the piece written many years ago was that Partnership Law is what is applied to carried interest taxation and so to change carried interest taxation would require writing a new special provision. Mr. Corker thank you for your desire to sefrpblt i look forward to serving with you. Mr. Warner thank you, mr. Chairman ms. Warren thank you, mr. Chairman. Thank you both for being here and your willingness to serve. I want to follow up on senator browns questions with a little more detail about the budget. I want to focus in on housing. According it a report earlier this year, from the National Low Income housing coalition, theres a shortage of about 7. 4 million affordable rental unites in this country. Million units in this country. Millions of families are forced to spend more than half their income on housing. On rent. The department of housing and urban developments responsible for addressing this crisis. But president trumps budget now calls for cutting h. U. D. s budget by 6 billion. That would be a 13 cut. If youre confirmed, you would be responsible for overseeing h. U. D. s housing programs. So i want to know where you stand on some of the specific cuts in the president s budget. Let me start with cdbg. The president s budget calls for eliminating all Community Development block grants. All of them. Thats 3 billion that currently helps fund shelters for people with special needs, that helps build nursing homents, that helps create homes for veterans. That helps create shelters for victims of domestic abuse. This proposed cut would hurt some of the most Vulnerable People in massachusetts and all across this country. Do you support eliminating this funding . Ms. Patenaude thank you, senator warren. The c. B. C. Program has been around for cdbg program has been around for over 40 years and 150 billion has been dedicated to this program. Ms. Warren do you support eliminating all funding for the cdbg program . Ms. Patenaude during the last two administrations they were significant cuts proposed in the budget for cdbg. I believe that was due to the lack of targeting for the program. Ms. Warren im still asking you the question, do you support eliminating the cdbg program or not . Its a Pretty Simple question. Ms. Patenaude the support the president s proposed budget. Ms. Warren so you support eliminating ms. Patenaude i wasnt involved in the negotiation. Ms. Warren i wasnt involved either but i have a very strong opinion about it. Do you support eliminating all of the Community Development block grants that are used to support housing . Ms. Patenaude i certainly would support reforms to cdbg. Ms. Warren do you support the cuts in the president s budget . This shouldnt be an arm wrestling contest here. Its a yes or a no. You either support where the president is or you dont. Ms. Patenaude i did. I zit did state that i support ms. Warren so you support all of these cuts then. Ok, we got it. Theres going to be a lot of people who are going to be hurt by that. Donald trumps budget also eliminates 948 million in funding for the home investment partnerships. Home funding helps states build and rehabilitate housing for low income families. Organizations in massachusetts rely heavily on home funding to create more livable, Affordable Housing units. So, theres a housing shortage of more than seven million Affordable Housing units in this country. And this proposed cut would make that shortage worse. More people will end up on the street. More women, more children, more veterans, more seniors, more people with disabilities. Its that simple. Do you support elimination of this funding . Ms. Patenaude senator, the home program has grown the number of recipients over the years, the grants are getting smaller and smaller and more difficult ms. Warren do you support eliminating funding for this program . Ms. Patenaude i support the president s proposed budget. Ms. Warren so you support eliminating it. Even though thats going hurt a lot of people too. More than any other federal agency, h. U. D. Is how americans help friends and families in need. Its not about handouts, its about helping people find decent, safe places to live. So that they can raise their kids, so they can go to school, so they can get a job. The president s h. U. D. Budget attacks those who need help. It attacks seniors, it attacks children, it attacks veterans, it attacks people with disabilities. It attacks abused women. It attacks people trying to put their live back together. T. S. A. Disgrace and anyone who cares about housing in this country should oppose it. Mr. Chairman, i yield. Mr. Crapo thank you. Senator rounds. Round round thank you, mr. Chairman mr. Rounds thank you, mr. Chairman. Ms. Patenaude, id like to follow up a little bit on the conversation that you began with Ranking Member brown. Im just curious, with regard to the president s budget and so forth, and the allocation of scarce resources through h. U. D. , could you share with us a little bit perhaps the how would you prioritize i mean, nobodys going to have as much money as we want to have. Yet there are very important projects out there. Im certain that youve had a chance to look at where your priorities would be. Can you share with us a little bit what you would see as the priorities and how you would use the dollars that are allocated and where you would like to see the focus at . With regard to the use of scarce resources. Ms. Patenaude thank you, senator rounds. The priority has been for a long time to target to the most vulnerable population. So i certainly pour the continuation of that support the continuation of that. I would also support programs that have a proven track record, that we can measure the performance. But with that said, id also like to look at reforms of some of these programs that i would certainly pour. In a future budget support in a future budget. Mr. Rounds one of the areas that weve got concerns with is in native American Housing and so forth. Particularly in the dakotas where we have large land masses, large areas, but basically a very scarce population. We found time and again that we really do lack housing in those areas. To us were talking about some of the poorest counties in the United States. Where theyre on the reservations and they do rely on assistance. Particularly when it comes to housing. Would you see it appropriate that in those areas, where you can evaluate, and you see these are perhaps some of the poorest and some of those that are most in need, are these the types of areas that you would consider prioritizing with regard to the resources that are available . Ms. Patenaude yes, senator. As i mentioned during our meeting, i have limited exposure to Indian Country and look forward, if im confirmed, to visiting pine ridge with you. So i can get a better understanding of the needs. But i was surprised to learn about the number of barriers to construction with the lands. I certainly would like to look at ways to work. You have more barriers than even normal circumstances for development. So id like to look at ways where we can help reduce those rigtory barriers to development. Use of the tax credit program. In Indian Country. I think it would be a high priority. Mr. Rounds last Year Congress passed the housing opportunity through modernization act by unanimous votes. In both chambers. This legislation was the first substantive housing reform enacted by congress in decades. Among the many reforms in the legislation were provisions that helped to address homelessness, reduce the administrative burdens on the Public Housing authorities and other organizations that the h. U. D. Works with. And provisions that further incentivize americans who use h. U. D. To find work and provisions that help improve the quality of life for residents of Public Housing. How do you think that congress can continue to build on this progress in the future . As youve looked, what other barriers what have we set up that we need to take a look at in terms of improving, to make the job of actually helping these individuals more realizeable . Ms. Patenaude the president has actually requested that each Agency Review their regulations. I think there are numerous regulations that are on the books that are outdated, no longer necessary. I believe that if were going to make a difference, we have to look at barriers at the local level, the state level, and the federal level. Particularly the local level. All zone something local, all real estate is local. I think h. U. D. Needs to help these communities see that there is indeed barriers, unnecessary barriers sometimes to development. Mr. Rounds the cdbg program, Community Development block grants, is an area that weve really relied on at the state level. During the time that i worked as governor in south carolina, south dakota, we used cdbgs. I really think that governors and local units of government have a real sense of where the resources can be put to use the best. In many cases these products can be used to create infrastructure, to improve infrastructure. It really makes a huge opportunity for individuals to see an improvement in their quality of life and smaller communities, as well as some of the inner city communities. Im curious what your thoughts are about the use of Community Development block grants, your support for them, and whether or not they have been an effective tool in your view. Ms. Patenaude you certainly have more experience, having been the governor and utilizing cdbg. Of course we do have Success Stories with. It but i do not believe that the amount of money thats available to the grantees is significant enough to make infrastructure investments. I believe the president s infrastructure bill perhapses is a better place to address infrastructure, water and sewer, than through the cdbg. Mr. Rounds i mostly certain think Additional Resources would be welcome. And that when we Start Talking about investment in infrastructure, i think the fact that we could look at areas in which it would actually improve housing by creating infrastructure that promotes more housing is a really good thing. But im also glad to hear that you think that maybe there were not enough resources put into c dbg as well. Wed like to talk about increasing that in the future as well. Mr. Chairman, with that, my time has expired. Mr. Crapo thank you. Mr. Donnelly thank you, mr. Chairman, and thank you both for being here. Ms. Patenaude, during your recent visit we discussed the crisis in east chicago in indiana where the lives of more than 300 families were upended and put at risk due to the presence of significant levels of lead and arsenic in our soil. H. U. D. Has helped most of thes remain kenlts residents find newhousing. Local officials are pursuing emergency h. U. D. Funding for the safety and the security and the ultimate demolition of the complex. Can i have your commitment that if confirmed youll advocate for h. U. D. To dedicate the resources needed, including emergency funding, to assist these residents in their local officials in getting this situation taken care of . Ms. Patenaude yes, senator. You have my commitment. And i believe that secretary carson is committed to this issue as well. Mr. Donnelly i think were working right now with his staff to find an exact date for him to come to east chicago. So he can witness it firsthand. When i was in the house of representatives, i served on the House Veterans Affairs committee. Far too many veterans, as we all know, that served our country find themselves sometimes without a home or place to put their head down at night on a pillow. We need to continue efforts to address this problem. That includes the Veterans Affairs Supportive Housing program from h. U. D. And v. A. I was troubled to see that the recent h. U. D. Budget proposal didnt include any additional funding for new h. U. D. Vouchers. In the broader tenant based rental Assistance Program is set for a funding cut. How can we help end veteran homelessness when were cutting the very programs intended to help them . Ms. Patenaude in preparation for the hearing i met with the career staff and met with the director of the homeless programs at h. U. D. During that briefing, the staff informed me that the allocation of vouchers that they currently have are sufficient to address the veterans needs. I found that to be somewhat surprising. So i asked again and then did i some research. Obviously theres going to be difference of opinions depending on who you talk to. I dro trust that the do trust that the career staff who are running the homeless program, administering the homeless programs have the data to make an informed decision. So i accept their recommendation that the current allocation is sufficient. To address this issue. Mr. Donnelly wed love to see all that data. Because the concern, the thought, the heartbreak of one veteran who doesnt have a place to go home to, or is in a facility that is nowhere near what they should be able to expect in terms of Living Conditions is something that we owe to every single veteran. How do you plan to utilize h. U. D. s resources to help house our Homeless Veterans . Ms. Patenaude the allocation of the vouchers is based on a formula for the for veterans, for the vast program. Id like to look at this. If im confirmed, would like to look into how we can reallocate so that the Homeless Veterans in need of the voucher and the support services, that theyre not currently reaching, that we can get this assistance to the veterans. Mr. Donnelly communities such as gary, indiana, have benefited from blight elimination funding. But theres still really big needs. The population declines there have led to a plague of abandoned and neglected buildings, resulting in increased crime and distressed sections. The main Funding Source for gary to battle housing blight in other cities is the Community Development block grant. The cdbgs. But the president s budget eliminates this program. How can we help cities like gary combat housing blight if the cdbg program is eliminated . Ms. Patenaude senator, there are other programs, there are other funding streams that can be used for demolition. I think the tax credit program, perhaps e looking at new construction or preservation of Affordable Housing, is another funding stream that could be used. Mr. Donnelly wed like to Work Together perhaps new with you. Because i think the elimination of cdbg makes us much, much more difficult. Makes it much, much more challenging. This is not a situation where theres not a need. All you have to do is walk around the streets and walk around town. Actually you can just drive by on the highway. And see it right from there. Some of the same houses that have been abandoned for a very long time. Mr. Hassett, i didnt want you thinking i was trying to ignore you. The ted to ask you about desire to see financial deregulation and the concerns i have about all of that. I was serving on the Financial Services committee during and i have to answer this question or ask this question. During the most difficult and challenging times we had in 2008, 2009 and 2010. Doddfrank was put in place to ensure safety and soundness. When we saw the dotcom bubble occur and then we saw collateralized debt obligations, similar things, id love to hear from you. Do you see any bubble on the who arize than should concern policymakers . And in what is your biggest concern . I always try after that experience to look at worst Case Scenarios so it never happens again. Because it destroyed my state in terms of employment and other areas. What do you see as the biggest challenge out there right now . The thing that concerns you the most . Mr. Hassett in financial regulations, senator, its not my immediate area of expert teels. The Financial Markets are very complex. Theyre what economists call incomplete, which means that they can at times act in incredibly befuddling ways and anyone who saw what happened to a bank understands the importance of financial regulation. As Financial Markets evolve, its really important that regularlation evolve. Mr. Donnelly what i was asking you is if you had one thing to keep an eye on or worry about right now, what would it be . I think tt i think that weve got a recovery that is very long in the tooth. Recoverys very recoversy very often end of old age and its something we need to be attentive to and think of policies we can adopt to extend the recovery. Mr. Donnelly thank you, mr. Chairman. Mr. Crapo thank you. Senator scott. Mr. Scott thank you, mr. Chairman. Thank you to the both of you for being here this morning. Good morning, ms. Patenaude. Good seeing you again. Thank you for coming by the office and having a good conversation about the direction of h. U. D. Certainly as weve had a lot of questions about the president s budget, i think its important to note that while we in congress will have the opportunity to negotiate and wrestle with the outcome of the budget requirements and priorities, your responsibility will be to take whatever is given to the the administration to the department, and do as much good as possible. Speaking of as much good as possible, we talked a little bit about the importance of treating the whole person as a part of the h. U. D. Approach. Myself, ill be joining senators blunt and reid in introducing the family selfsustainability act. The bill cuts department costs through consolidating redundant programs and at the same time it expands the scope of the ffs program to provide more residents access to job training or help in attaining a g. E. D. , lower costs, more selfsustainability. I think thats what we call a winwin. What would be your approach to treating the whole person at h. U. D. . Ms. Patenaude certainly publicprivate partnerships component toitical that. The communities that have the resources are certainly better positioned to be able to help. But i believe that the componen sector, as well as local government, can play an enormous role in help togafau silltate programs, help to facilitate programs. Whether its after School Programs or the vision sents that are secretary carson has talked about during his listening tours centers that secretary carson has talked about during his listening tures. We need to look to the private sector to help rebuild some of these communities. Mr. Scott thank you very much. I look forward to your confirmation. Dr. Hassett, thank you for your work at a. E. I. Ivepblet watched from you a distance and appreciate your commitment to our economy and the way you have said things, painted pictures. Long toothed recovery. Interesting. You have also said that while certain areas of the country are doing remarkably well, the recovery has profoundly been uneven. With large swaths of the country facing chronic rates of longterm unemployment and historically low levels of new investment. Can you elaborate on the social and Economic Cost of this uneven economic recovery . And also, what could we do to bring more resources into distressed communities . Mr. Hassett one of the things in the last decade of research that was startling to me is that there are so many people if they lose their job and dont get the job back in a little while they start to despair and have personal problems and often it can to a spiral that takes them to a very bad place. And in my hometown, there are a number of people that have substance abuse. There was a really moving piece on this. When i give economic talks around the country and ask americans, they recognize it and something i have noticed that Everyone Wants to do something about it, everybody does. But dont know what to do about it, especially the geographic inequality. We have to think of ways not only with policies but individual by individual to help people make a difference. Senator scott there are two individuals who have been working on this. We have investing and opportunity act which seeks to defer the Capital Gains if they are willing to invest in the diss stressed communities. I would love for you to look at the legislation and how we might have some success in impacting longterm poverty and unemployment in those distressed communities. Mr. Hassett i look forward to working with you. Senator scott according to the. Olks, we have 2 38 the question i have is on the whole notion of Participation Rate that you just described the impact of longterm unemployment makes it very difficult to return to the work force since our work force Participation Rate has been declining for the last eight or nine years. I think about the economy to come, the technology economy. Our work force and investment is going to be a very important part of how to navigate the future challenges that will displace millions of workers in a way we have not seen in the past, how do you factor in the goal that you have in growing the economy . Mr. Hassett its an urgent goal to address the problem, working and e o. C. D. Countries help people get back to work. But also presents a number of challenges. Senator scott thank you. And welcome to both of you and thank you for the time you spent with me in my office talking about the issues that obviously are important to so many of us particularly in nevada as well. Nice to see your family here, welcome and i appreciate your ommitment to public service. Doctor, let me follow up with this, in 2013 you said in a written research peace with lackluster g. D. P. Growth, allowing more immigrants to enter for the sake of employment is one of the few policies that might restore the old normal. It could add more than half a percentage point a year to expected g. D. P. Growth, un unquote. Here we are in 20717 with the administration pursuing precisely the opposite policies. The president s approximately si f mass deportation is sparking fear causing Consumer Spending to fall by double digits. This is threatening the economy after the financial crisis and financial crisis that was hardest hit in nevada. What you said in 2013 still true about immigration and Economic Growth . Mr. Hassett i think there are a lot of policy angles on immigration and one of them is border security. But the comments are mapping inputs into outputs and more input of labor we will get more output. My ancestors are irish immigrants and with not allowed into the country because of a computer degree. Immigrants have been an important source of growth. Entrepreneurship is flailing but immigrants are twice as likely to be entrepreneurs. I think any immigration policy would have to recognize all the policy challenges and through simple economics. What you said in 2013 still holds true . Mr. Hassett i dont know if i would advocate of how much immigration should go up. But if there were more workers, we would have more output. In the past you characterized wall street reform as the worst piece of legislation i have seen and the law needs to be repealed as soon as possible. Is it still your review that wall street reform should be repealed . Mr. Hassett senator, i would have to look back i dont recall i would have to look back at what i was talking about and get back to you. It would take more to review what i was talking about. Im usually not so strident. Let me say this and came out of the worst financial crisis and if we are going to continue to make economic progress, we cant aadvice rate the rules we put in place after the collapse. Ms. Patenaude, thank you for the conversation. I am absolutely concerned about the concerned we had about eliminating the cdbg and somebody who worked at the local level and state government, i know that money is crucial to what we do in nevada when it comes to Homeless Services like lion county, transportation for seniors and food pan try in Clarke County and meals on wheels. So let me ask you this because i know we had this conversation and you support the president s budget because he eliminates the cdbg. But let me give you the opportunity. Would you eliminate it or reform t . Significant impact. Obviously there are many exceptions to what im saying. But over the years under both democrat and republican administrations there have been cuts to the cdbg program. In our conversation you mentioned you have accountability and transparency during your previous work at h. U. D. And thats the concern i have with this discussion today. I understand my time is up. There are others that i will submit for the record and i appreciate you being here today. Thank you. Senator till is. Tillstills i want to go back to the discussion about immigration, the point of your report had to deal with legal immigration, guest worker they s, h 1 because create an economic multiplier and i think some would argue they create american jobs as a result of that reliable re dwictable Guest Worker Program and something we need to be fixed. Is that the essence of your analysis . Yes, sir. Im looking forward to supporting your nomination, did i read your report on he flate gate and im not a patriots fan. But go back and change my talk but not use the hearing to drill into that. I want to talk about a report, you are very well published and impressive list of writings and pending taxes uncertainty to road map. How would you cut through the noise that we have right now and emphasize what we think we have to do to build the momentum to actually get to a 4 sustainable g. D. P. Growth . Mr. Hassett its essential as we move forward and make the policy changes that we need to build consensus by rigorous modeling that draws on senator is it a regulatory policy . What are the toplibe issues that people who dont have your ex per test that we should focus . Mr. Hassett thank you for referencing the specific article. One is tax policy and one is regulation to make sure it passes the cost benefit test and remove uncertainty because we havent fully funded the promises we made. If you look back, the countries that have gotten their act together have experienced surges in growth and every reason that could be an opportunity for the United States. Senator ms. Patenaude, i want who ve you cdbg, anyone works in state government, knows the impact it could have. Hud has programs, some are working and when dr. Carson and i met, i asked him if he was going to focus on people to come in do you believe within the president s budget, do you think that the administration wants to turn their back on the 11 million households who spend 50 on rent and utilities or come up with more resources . Ms. Patenaude i absolutely believe that the administration is not abandonning the population you referred to, but we need to be more creative and harness the power of the private sector and work with local communities to help reduce the barriers. And it can contribute regulatory barriers can contribute up to 35 of the cost of the unit for a home. So there is an opportunity there. Far as the hud programs, we tried to, proposed reform in 2005 and we were not successful with the reforms at that time. Senator if we are going to get to a point where we are producing resources to people who need it, we have to be open to a different way of addressing e needs and we have a lot of duplication and inefficiency and cd bg is important to me because we were successful of getting dollars through the program for Hurricane Matthew relief. It is a vehicle im using today. If you could give me a more efficient vehicle that gives me more for disaster relief, thats what we need in hud. We need to patriotic it leaner and the dollars that are going to these programs are affecting lives. Senator reed his thoughtfulness and his annual lit call skills. We dont always agree. But in that vein, i would hope in your new role you would continue to promote this as an option in every state. We have expanded it to 18 or 20 states. Would you comment on that as an appropriate way to deal with it i think that absolutely if Unemployment Insurance reform were to be on the agenda there is a large body of economic evidence that would support extending efforts in that direction. Enator reed ms. Patenaude thank you again. Ur efforts one of the issues that came up as the secretary cautioned, i asked him to kind of work with me and thers to maintain the u. S. Interagency council on homelessness and in the budget it has been zeroed, senator collins and i have legislation to restore. You served on the council from 20052007. Will you support our efforts to restore it . And if not, whats the option . Patenaude the council was certainly unique at the time. We did not on a regular basis collaborate with other federal agencies. I had never been in the department of transportation or department of health and human services. And the only interaction i had was during the meetings with the interacres council and i think the Interagency Council perhaps is outlived its time because now collaboration is expected. Its part of the Performance Management agenda and i would like to take a look at how does the Interagency Council is working right now. I did go online and it is a source of a lot of data but perhaps that is duplicating efforts at hud and i would like to look into it and give more onsideration to the council. Senator reed give it a longterm existence and would like you to look at it and get back to us. I can recall again serving as the ranking democrat on the Appropriations Committee for. U. D. And his response was cybersecurity. Nd in your role, you are the chief, administrative officer, can you discuss what steps you intend to take with respect to cybersecurity . Ms. Patenaude after our meeting i scheduled a meeting with the chief Information Officer and this is an area that i have limited expertise in and i think i was amazed how far h. U. D. Has come and i realized i was talking to the gentleman in charge of that and deputy c. I. O. And it appeared from the conversation that we had that it is in much better shape than the Inspector General has portrayed in the report to congress. So i was encouraged by that meeting. It was an hour long. I would meet several hours with the c. I. O. And hopefully have , nominated board soon. Its an area that i will spend a lot of time researching and trying to understand the needs of h. U. D. But it was an encouraging conversation. Senator reed i am concerned about the cuts to cdbg. Nd its a worthy endeavor to look for a more efficient model but cutting a model that appears to work very well, i have not heard a lot of complaints. In fact, i have heard lots of claims particularly by local leaders, mayors and governors about how effective it is. It provides resources for local think thats i something that should be considered. And one other point, too. Just to clarify this, in response to how you are going to make this more efficient, the suggestion was the local regulatory barriers ms. Patenaude thats to new construction and preservation and local zoning and contributing to lack of supply in this country and i feel that thats an area we need to address. Senator reed the Trump Administration is going to intervene in local zoning to make it more efficient and effective to develop Affordable Housing . Ms. Patenaude i dont think the federal government should have the zoning powers but to be able to encourage local communities. When secretary kemp was at the helm of h. U. D. , he led a comprehensive effort, not in my back yard, which identifies every level of government, but the purpose of this was to share best practices. During the Bush Administration we had an effort to work with mayors. There are ways to incentivize, but not to dictate to local Decision Makers. But there is a lack of education senator reed there is money in the budget to incentivize changes to local zoning to encourage Affordable Housing . Ms. Patenaude i dont see anything in the budget to do that. We have the initiative that was run through the Community Planning and development and an area, if confirmed, i would like to share the results of that program and the efforts to work ith the secretary. Senator reed you have been very kind. I will at this point thank you for your very kind comments. And that concludes the questioning. Before i give a couple of final announcements, i want to thank each of you for coming here and participating at the hearing and thank you for your service and your willingness to give more service for the country. All followon questions, responses are due by monday morning. Please respond quickly to the questions you may get. With that, the hearing is adjourned. [captions Copyright National cable satellite corp. 2017] nick nick ms. Pelosi good morning, everyone. Over the weekend i had the great privilege of accompanying a codel to galveston, texas to be part of the commissioning of the u. S. S. Gabrielle giffords. This is so exciting. The ship, of course, honors gabbys service in congress, its her bravery and triumph of the human spirit that she has become one of the most respected