[Senate Hearing 115-93] [From the U.S. Government Publishing Office] S. Hrg. 115-93 NOMINATION OF RUSSELL T. VOUGHT, OF VIRGINIA, TO BE DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET ======================================================================= HEARING & EXECUTIVE BUSINESS MEETING BEFORE THE COMMITTEE ON THE BUDGET UNITED STATES SENATE ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION __________ June 7, 2017--HEARING ON THE NOMINATION OF RUSSELL T. VOUGHT, OF VIRGINIA, TO BE DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET June 14, 2017--EXECUTIVE BUSINESS MEETING TO CONSIDER THE NOMINATION OF RUSSELL T. VOUGHT, OF VIRGINIA, TO BE DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Printed for use of the Senate Budget Committee U.S. GOVERNMENT PUBLISHING OFFICE 26-919 PDF WASHINGTON : 2017 ---------------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected]. COMMITTEE ON THE BUDGET MICHAEL B. ENZI, Wyoming, Chairman CHARLES E. GRASSLEY, Iowa BERNARD SANDERS, Vermont MIKE CRAPO, Idaho PATTY MURRAY, Washington LINDSEY O. GRAHAM, South Carolina RON WYDEN, Oregon PATRICK TOOMEY, Pennsylvania DEBBIE STABENOW, Michigan RON JOHNSON, Wisconsin SHELDON WHITEHOUSE, Rhode Island BOB CORKER, Tennessee MARK R. WARNER, Virginia DAVID A. PERDUE, Georgia JEFF MERKLEY, Oregon CORY GARDNER, Colorado TIM KAINE, Virginia JOHN KENNEDY, Louisiana ANGUS S. KING, Jr., Maine JOHN BOOZMAN, Arkansas CHRIS VAN HOLLEN, Maryland LUTHER STRANGE, Alabama KAMALA D. HARRIS, California Eric Ueland, Republican Staff Director Warren Gunnels, Minority Staff Director C O N T E N T S ---------- HEARING Page June 7, 2017--Hearing on the Nomination of Russell T. Vought, of Virginia, To Be Deputy Director of the Office of Management and Budget......................................................... 1 OPENING STATEMENTS BY COMMITTEE MEMBERS Chairman Michael B. Enzi......................................... 1 Ranking Member Bernard Sanders................................... 2 WITNESS STATEMENT Russell T. Vought, of Virginia, Nominee To Be Deputy Director of the Office of Management and Budget............................ 7 Prepared Statement of........................................ 9 MATERIALS SUBMITTED FOR THE RECORD Prepared Statement of U.S. Representative Jeb Hensarling of Texas, Submitted by Chairman Michael B. Enzi................... 5 Letter from the Arab American Institute, Bend the Arc Jewish Action, and Muslim Advocates, Submitted by Ranking Member Bernard Sanders................................................ 13 Statement of Biographical and Financial Information Requested of Presidential Nominee Russell T. Vought To Be Director of the Office of Management and Budget................................ 31 Pre-Hearing Questions from Ranking Member Bernard Sanders with Answers by Russell T. Vought................................... 41 Post-Hearing Questions from Ranking Member Bernard Sanders with Answers by Russell T. Vought................................... 45 Post-Hearing Questions from Budget Committee Members with Answers by Russell T. Vought: Senator Bob Corker........................................... 51 Senator Debbie Stabenow...................................... 53 Senator Mark R. Warner....................................... 56 EXECUTIVE BUSINESS MEETING June 14, 2017--Executive Business Meeting To Consider the Nomination of Russell T. Vought, of Virginia, To Be Deputy Director of the Office of Management and Budget................ 67 Committee Votes.................................................. 67 STATEMENT SUBMITTED FOR THE RECORD Prepared Statement of Senator Charles E. Grassley................ 69 NOMINATION OF RUSSELL T. VOUGHT, OF VIRGINIA, TO BE DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET ---------- WEDNESDAY, JUNE 7, 2017 U.S. Senate, Committee on the Budget, Washington, DC. The committee met, pursuant to notice, at 2:31 p.m., in room SD-608, Dirksen Senate Office Building, Hon. Michael B. Enzi, chairman of the committee, presiding. Present: Senators Enzi, Grassley, Gardner, Kennedy, Sanders, Stabenow, Merkley, Kaine, Van Hollen, and Harris. Staff present: Matthew Giroux, Republican deputy staff director; and Warren Gunnels, minority staff director. OPENING STATEMENT OF CHAIRMAN MICHAEL B. ENZI Chairman Enzi. Good afternoon. I will call this hearing to order. We are here today to consider the nomination of Mr. Russell T. Vought, of Virginia, to be the next Deputy Director of the Office of Management and Budget (OMB). I am going to try to keep my opening remarks brief. President Trump nominated Mr. Vought for this position just last month. I think all members on the committee can agree that we would like to see a confirmed OMB Deputy Director in place as soon as possible. I was delighted to see that the Homeland Security and Governmental Affairs Committee convened this morning to hold their own confirmation hearing with Mr. Vought. Now that all of us have had the opportunity to review the President's budget and were able to hear from Director Mulvaney, we can see why there is a real need to ensure all the leadership positions at OMB are filled. Recall that the President's budget is just one step in the process of putting America on a better and more sustainable path. This Herculean effort will take Congress, the administration, and, most importantly, the American people all working together if we are going to confront our fiscal challenges. America faces today a nearly $20 trillion debt, unchecked and unfunded mandatory spending, and large regulatory burdens on businesses and individuals. I am pleased that the President has nominated an experienced hand. As I mentioned just recently, we had the privilege of hearing from Director Mulvaney speak about the President's budget. I am certain that Director Mulvaney is looking forward to having Russell T. Vought by his side as OMB now transitions to work on implementing the policy proposals contained in the President's budget. Indeed, producing a budget is just one of the important roles OMB serves. For example, OMB works to manage governmentwide functions, such as agency rulemaking, contracting, grants management, financial management, information technology, program assessment, personnel policy, and property management, just to name a few. Having a Deputy Director in place at OMB will ensure that the administration and the Federal Government is serving the American people to its utmost capability. Today I look forward to hearing from Mr. Vought on why he is the best qualified person for this position. Particularly, I am eager to know how his past positions of working in public policy will translate now to enacting real reforms. I am pleased to announce that we had a very productive meeting before this hearing weeks ago, and it is encouraging that we can continue that conversation today. As with then-nominee Mulvaney, I will be interested in learning Mr. Vought's views on the role played by the Office of Information and Regulatory Affairs, OIRA, and vetting agency regulations. This is a particular interest because our committee has been exploring the concept of a regulatory budget as one way to quantify the burdens Federal regulations have on the American economy. Another important area of the committee's work is reforming the broken budget process. Unfortunately, we have seen years when budgets were not even passed, and if they were, prescribed levels of funding were not enforced. I am confident that the administration wants to do better, and I am eager to hear how Mr. Vought plans to assist in that process. Senator Sanders. OPENING STATEMENT OF SENATOR BERNARD SANDERS Senator Sanders. Thank you very much, Mr. Chairman. Mr. Vought, thanks for being with us. As I understand it, Mr. Chairman, Mr. Vought has been at the OMB as part of the so-called beachhead team since the beginning of the Trump administration. Mr. Vought has told us in writing that he has ``largely been responsible for advising Director Mulvaney on the composition of the fiscal year 2018 budget proposal and preparing decisions for him to make.'' Now, I have to say that, in my view, the budget that Mr. Vought helped write is perhaps the most destructive and cruel budget ever presented by a President in the history of our country. This is a budget that would cause devastating economic pain to tens of millions of Americans. It would make it harder for children to get a decent education, make it harder for our working families to get the health care they desperately need, make it harder to protect our environment, and make it harder for senior citizens to live out their retirement years in dignity. The Trump budget that Mr. Vought helped write cuts nutrition assistance for low-income pregnant women and their babies by 15 percent, literally taking food out of the mouths of some of the most vulnerable people in this country. The Trump budget would eliminate the Low-Income Home Energy Assistance Program, something very important to my State because we have weather that occasionally gets 10, 20 below zero. We have a lot of lower-income seniors and others who cannot afford to keep their homes warm in the wintertime. The Trump budget would cut affordable housing to some 250,000 families at a time when millions of working people are spending 40, 50, or 60 percent of their limited incomes trying to put a roof over their heads. The Trump budget that Mr. Vought apparently helped to write would slash Head Start by almost $1 billion, throwing nearly 90,000 low-income children off of the high-quality early childhood education they desperately need. Now, here is the point about this budget, which really is the main thing. It is not just that there are massive cuts to health care, to education, to nutrition, to environmental protection, to affordable housing--about $2.5 trillion in cuts over a 10-year period. But what was very interesting about this budget, at the same time they make massive cuts to the programs that working families desperately need, they also managed to put in there some $3 trillion in tax breaks for the top 1 percent. So Mr. Vought and Mr. Mulvaney and Mr. Trump apparently think it makes a lot of sense to go after the needs of working families, the elderly, the children, the sick and the poor--the most vulnerable people in this country--and then at the same time say to billionaire families that they are going to get massive tax breaks. Now, as all of you know, when Donald Trump campaigned for President, he told the American people that he would be a different type of Republican. Well, not the case. Tax breaks for the rich and cuts in programs for working people are the same old Republican ideology that we have heard from for years. Further, Mr. Chairman, what President Trump is also doing in a way that is unprecedented in modern American history is trying to divide this country up. It is one thing for us to disagree on issues. But what serious Presidents do, what serious leaders of democracies do, is to try to bring people together. Maybe the color of your skin is a little bit different than mine. Maybe your religion is different than mine. Maybe you came from a different country than I did. But what leadership in a democratic society is about is bringing people together. And yet we have a President who is trying to divide us up based on the Nation that we came from, based on our religion, based on many other factors. Which brings us to Mr. Vought, the nominee of today. On January 17, 2016, Mr. Vought wrote an opinion piece for a publication called The Resurgent in which he said, and I quote: ``Muslims do not simply have a deficient theology. They do not know God because they have rejected Jesus Christ, His Son, and they stand condemned.'' When Mr. Vought was asked in writing if he considered this statement to be Islamophobic, hateful, and offensive, he responded, and I quote--this is Mr. Vought: ``No. I respect the right of every individual to express their religious beliefs. This statement, which is taken out of context, was made in a post designed to defend Wheaton College, my alma mater, for its decision to insist that one of its professors maintain its statement of faith. I specifically wrote it with the intention of conveying my viewpoint in a respectful manner that avoided inflammatory rhetoric.'' End of quote from Mr. Vought. The professor who Mr. Vought is referring to is Larycia Alaine Hawkins, who became the first female African American tenured professor at Wheaton College in 2013, serving as an associate professor of political science. Apparently, the crime that Mr. Vought found so objectionable was a 2015 Facebook post that Ms. Hawkins wrote, stating, and I quote--this is from Ms. Hawkins, the professor of political science: ``I stand in religious solidarity with Muslims because they, like me, a Christian, are people of the Book. And as Pope Francis stated, we worship the same God.'' Mr. Chairman, in my view, the statement made by Mr. Vought is indefensible, it is hateful, it is Islamophobic, and it is an insult to over a billion Muslims throughout the world. This country since its inception has struggled, sometimes with great pain, to overcome discrimination of all forms, whether it is racism, sexism, xenophobia, homophobia, and Islamophobia. Over the years we have made progress in becoming a less discriminatory and more tolerant society, and we must not go backward. The nomination by President Trump of an individual who has expressed such strong Islamophobic language is simply unacceptable. In a democratic society, we can all disagree over issues, but racism and bigotry cannot be part of any public policy. In my view, the nomination of Mr. Vought must be rescinded. I yield back the balance of my time. Chairman Enzi. Thank you, Senator Sanders. Before I begin, I would like to ask unanimous consent to enter into the record a letter from Congressman Hensarling introducing Mr. Vought. Without objection, so ordered. [The referenced information follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Enzi. Our witness this afternoon is Mr. Russell T. Vought, the President's nominee for Deputy Director of the Office of Management and Budget. Mr. Vought has been serving at OMB since January in a senior advisory role. Prior to his time at OMB, Mr. Vought had an extensive and impressive career on Capitol Hill. Starting his time on the Hill as an intern, Mr. Vought worked his way up the ranks to become the Policy Director of the House Republican Conference. Along the way, Mr. Vought also completed his law degree from George Washington University. After leaving Capitol Hill, Mr. Vought served as vice president for grassroots outreach and policy initiatives at the Heritage Action for America. We look forward to receiving your testimony, Mr. Vought, but first, under the rules of the committee, nominees are required to testify under oath, so, Mr. Vought, would you please rise with me so I can administer the oath? Do you swear that the testimony you will give to the Senate Budget Committee will be the truth, the whole truth, and nothing but the truth? Mr. Vought. I do. Chairman Enzi. If asked to do so and if given reasonable notice, will you agree to appear before this committee in the future and answer any questions that members of the committee might have? Mr. Vought. I will. Chairman Enzi. Please be seated. We will now have a chance to hear from you. STATEMENT OF RUSSELL T. VOUGHT, OF VIRGINIA, TO BE DEPUTY DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET Mr. Vought. Thank you, Mr. Chairman. I want to thank you, the ranking member, and the members of this committee for the honor of appearing before this committee. I also want to thank and introduce my family who has endured this process with me and the long hours that come with serving one's country in a public role. My wife, Mary, is here, and my daughters Ella and Porter. And I am also thrilled that my sisters and many friends could be here in support. It is a joy to ``come home'' to the U.S. Senate. I worked the first 4 years of my career in this distinguished body, mostly for Senator Phil Gramm. I spent hours on the Senate floor, in committee, and at my desk, learning how the Senate works its will with great deliberation; how an institution protects the rights of a minority to be heard, and how Statesmen ought to debate their colleagues to move votes and shape public opinion. And it was here that I developed a love for public policy, seeing how it could be used to help the people of this country live freer and better lives. It is an honor to be nominated to serve as the Deputy Director of the Office of Management and Budget. It is a job that comes with great responsibility, and I am humbled that President Trump and Director Mulvaney have asked me to serve. I know the quality of the men and women who have served previously in this particular role, and I want to contribute to that long line of distinguished public service. My career has readied me for this moment. I spent over 12 years working in the House and Senate, with a specific emphasis in budget policy. I was the Republican Study Committee's Budget Director, writing its budget resolution and advising on budget policy. I went on to serve as the RSC's Executive Director and then the Policy Director of the Republican Conference under then-Chairman Mike Pence. All of these roles afforded me an opportunity to handle a wide range of policy issues and manage policy development processes that ensured a wide variety of viewpoints would be heard. That is very much the job of the Deputy Director of OMB: to build and further a policy process that ensures that the President and his advisors receive the best analysis possible so that everyone is heard and the best decision is made. I also have experience managing a large organization. I spent the last 7 years managing many aspects of Heritage Action for America, including staff and 17,000 volunteers across the country. Volunteers are in fact volunteers. They have their own viewpoints and ideas, and you do not get very far working with them if you do not treat them as leaders in their own right. That experience has prepared me well for managing the men and women of OMB, who are career experts in their fields and have years of institutional knowledge for this administration to draw upon. As for the job to be done, it is immense. Our country faces a $20 trillion national debt. It will eventually wreck our country if not addressed. That burden will fall on my children and grandchildren if the current trajectory of spending is not dealt with. It will mean a lower standard of living for them and less time for the truly important things in life as more and more of their salary is consumed by Government. Their families and communities will be weaker, and they may be the first generation that gets a worse deal than their parents. That is not the American way. I have spent my entire career caring about taxpayers and their families. I have fought to save them money and ensure that their tax dollars were spent well. I come from a blue- collar family. I am the son of an electrician and a public school teacher. I know what they went through to balance their budget. My parents worked really long hours to put me through school. But they also worked long hours to pay for the Government in their lives, and I have often wondered what they would have been free to build and give without such a high burden. My old boss called them the ``wagon pullers in our country.'' Others have referred to them as this country's ``forgotten men and women.'' They have always been my test for Federal spending. Did a particular program or spending increase help the nameless wagon pullers across our country, working hard at their job, trying to provide for their family and future, without the luxury of watching C-SPAN at that very moment to know whether we were increasing their burden? How would they vote? Yea or nay? I believe that as a country we have too often failed that simple test, and it is the reason that we face a $20 trillion national debt. If the Senate confirms me, I am ready to take up that work again. Thank you for considering my nomination, and I look forward to answering your questions. [The prepared statement of Mr. Vought follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Enzi. Thank you for your testimony. Does anybody have any questions about the order we will go in? I will ask questions first, and then you will get to ask questions, and then we will go back and forth, if anybody else shows up over here, we will go in order of appearance at the sound of the gavel. Thank you for your testimony, and particularly thank you for bringing your family. That is who we do these things for, family. I have some grandkids and I do not want to be embarrassed by questions they might have later of things that I might not have gotten done. Of course, an important part of the committee's work is budget process reform. There are a lot of good ideas out there on how to reform this process, and one in particular is implementing a biennial budget. I am proud to say that my home State of Wyoming budgets biennially. Most States do. We do not seem to be able to get through the process, so maybe if we did it once every 2 years or divided it into two separate categories of six budgets and six budgets, we might be able to get the job done. So what are your thoughts on biennial budgeting for the Federal Government? What other budget reforms might you suggest? Mr. Vought. Thank you, Senator. We very much need to fix our budget process, and it is something I have long been interested in, working on budget process reforms as a congressional staffer. Biennial budgeting is definitely an idea that is worthy of consideration. I would be very interested in the types of reforms that would ensure that our appropriations process is on a 2-year cycle. I am worried about not having budgets every year because I would not want to lose the ability to have reform and oversight in those off years. But I think there are ways around that, and to use the second year in a 2-year cycle to do a lot of that oversight. But it is definitely an idea that is worthy of consideration, and if confirmed, I would look forward to working with you on that. Chairman Enzi. Thank you. Of course, another important area of the committee's work is trying to grasp the cost of Federal regulations. Private sector studies have estimated this cost could be close to $2 trillion annually in gross domestic product (GDP). At OMB, the Office of Information and Regulatory Affairs, OIRA, is positioned to play an important role in reining in the burdens created by regulations. I posed a similar question to Director Mulvaney at his confirmation, but how do you see OIRA accomplishing the task of reducing the cost of Federal regulations? Mr. Vought. If confirmed, I would love to work on this issue. It is an enormous priority of this President to reduce the cost of regulation. You see it in some of his initial Executive orders which begin to ask agencies to live under incremental cost growth with regard to new regulations and to begin to reduce the burden of regulatory--reduce the burden of regulations as they are moving forward with new ones. So that is certainly something that I would look forward to, if confirmed, working on with this committee. Chairman Enzi. One of the things I am particularly concerned about is how many regulations are passed and it is estimated that they have about a $100 million impact on small business. I will be watching that. There are many times as Deputy Director when you may disagree with the President. For example, President Trump has called for increasing infrastructure funding, and in the past you have stated that you would be against infrastructure increases. Obviously, nobody agrees 100 percent of the time. How would you approach situations when the administration proposes one policy and you may feel a different policy is preferable? How did you handle this when you worked in the legislative branch? Mr. Vought. Sure. This President wants people in the room who disagree with him and provide their viewpoints, and so I would continue to do that, and I have done that. I think that as it pertains to the President's budget, it is his budget, and I would go forward and I would be, as I am, supportive of his policies and his agenda. Chairman Enzi. Thank you. Now, our current fiscal crisis is caused in large part by mandatory spending. Seventy percent of all the fiscal decisions are made before we get to make any others. This spending is not subject to annual appropriations, and instead the money flows out of the Treasury on autopilot. Mandatory spending continues to consume a larger and larger portion of the money that Treasury collects. In fact, by 2027, mandatory spending will account for 77 percent of all dollars collected by the U.S. Government. Now that preparation for the President's 2019 budget has already begun, what approach would you suggest for entitlement reform? Mr. Vought. Well, Senator, it is a very important issue. It is one that this President's budget took very seriously. There is more nominal entitlement reductions than any other President's budget in history. There is more reductions in entitlement spending as a percentage of the base than any President's budget since President Reagan. And so this President's budget takes it seriously, and in 2019, fiscal year 2019, if the Senate confirms me, I would be arguing to continue that trajectory of trying to deal with one of the biggest drivers of our Federal spending problem and our debt in this country. We have begun the process of balancing our budget. It takes us 10 years to do it, but I think when you start to balance budgets and you start to ensure that there is some parameter for which decisionmaking should exist in, it is a very healthy budget process to regain the concept of balance, and it is something that we are very proud of with regard to this budget that we are able to achieve balance in the last year. Chairman Enzi. Thank you. My time has expired. Senator Sanders. Senator Sanders. Thanks very much, Mr. Chairman. Mr. Chairman, I would appreciate making as part of the record a letter from three organizations written together: the Arab American Institute, Bend the Arc Jewish Action, and Muslim Advocates. And I will just read the first---- Chairman Enzi. Without objection. Senator Sanders. Thank you. [The letter follows:] [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Senator Sanders. Their letter states, and I quote: ``We write to express our deep concerns about the nomination of Russell Vought to the position of Deputy Director of the White House Office of Management and Budget. Mr. Vought has denigrated American Muslims and the Muslim faith. His writings demonstrate a clear hostility to religious pluralism and freedom that disqualify him for any appointment, including that of Deputy Director of the OMB.'' So for the record. Let me start off, Mr. Vought, on budget matters. You in your remarks expressed the concern about the national debt, its impact on what you call ``wagon pullers,'' middle-income, working-class people, and that when you make decisions working on budgets, you always try to think of how it will impact those people, how they feel. Will they vote yes or nay? Just kind of paraphrasing what you said. Do you think that wagon pullers, that middle-class family, that working-class family who today is probably working longer hours for low wages, thinks it is a great idea to give up to a $52 billion tax break to the Walton family, the wealthiest family in this country, at the same time as your budget makes massive cuts that will impact that very wagon-puller family in terms of Head Start, in terms of Medicaid, in terms of after- school programs for his or her kids? When you wrote that budget, did you have in mind that middle-class person? Do you really think that they think it is a great idea to give up to a $52 billion tax break to the wealthiest family in this country, a family worth something like $130 billion? Mr. Vought. Senator, I think it is an important concept that most American families deal with on a week-to-month basis, which is how do we balance our family budgets. And when they think about what they can spend, I am pretty confident, because I have lived in one, that they think through what they have to spend before they think through what they have---- Senator Sanders. I understand that. I understand that. I came from a family that maybe had less money than your family. But I am not sure that your family or my family or that average middle-class family thinks it is a great idea to cut nutrition programs or food stamps or Medicaid. Please answer the question. Tell me why you think it is a great idea to give up to a $52 billion tax break--$52 billion--to the wealthiest family in America now worth $130 billion. Tell me that. Why do you think it is a good idea? Mr. Vought. Senator, I assume you are referring to the repeal of the estate tax. Senator Sanders. That is exactly what I am referring to. Mr. Vought. This administration--and I fully support it-- does not think that death should be a taxable event as it pertains to ranches and small businesses and things that a---- Senator Sanders. All right. Just for the record, I knew that that would be your answer, and it is the answer given over the years. Will you deny that 99.8 percent of the American people will not get a nickel of benefit? That is what all of the studies show. It is for the top two-tenths of 1 percent. Mr. Vought. Senator, I do not think that the American people view America that way. I think they view America as a land of opportunity, and that they want to be able to work hard and provide a future for their children and grandchildren so that someday they may have to--be able to---- Senator Sanders. OK, thank you. Mr. Vought, I do not mean to be rude. I just have some other questions that I would like to ask you. The bottom line is the administration has nothing to say about the absurdity of providing unbelievable tax breaks to people who do not need it while making major cuts for working families. Let me get to this issue that has bothered me and bothered many other people, and that is in the piece that I referred to that you wrote for a publication called Resurgent. You wrote: ``Muslims do not simply have a deficient theology. They do not know God because they have rejected Jesus Christ, His Son, and they stand condemned.'' Do you believe that that statement is Islamophobic? Mr. Vought. Absolutely not, Senator. I am a Christian, and I believe in a Christian set of principles based on my faith. That post, as I stated in the questionnaire to this committee, was to defend my alma mater, Wheaton College, a Christian school that has a statement of faith that includes the centrality of Jesus Christ for salvation, and---- Senator Sanders. Again, I apologize. Forgive me. We just do not have a lot of time. Do you believe that people in the Muslim religion stand condemned? Is that your view? Mr. Vought. Again, Senator, I am a Christian, and I wrote that piece---- Senator Sanders. Well, what does that say---- Mr. Vought [continuing]. In accordance with the statement of faith of Wheaton College. Senator Sanders. I understand that. I do not know how many Muslims there are in America. I really do not know, probably a couple million. Are you suggesting that all of those people stand condemned? What about Jews? Do they stand condemned, too? Mr. Vought. Senator, I am a Christian. I---- Senator Sanders. I understand you are a Christian, but this country is made up of people who are not just--I understand that Christianity is the majority religion, but there are other people of different religions in this country and around the world. In your judgment, do you think that people who are not Christians are going to be condemned? Mr. Vought. Thank you for probing on that question. As a Christian, I believe that all individuals are made in the image of God and are worthy of dignity and respect regardless of their religious beliefs. I believe that as a Christian that is how I should treat all individuals---- Senator Sanders. And do you think your statement that you put into that publication, ``They do not know God because they rejected Jesus Christ, His Son, and they stand condemned,'' do you think that is respectful of other religions? Mr. Vought. Senator, I wrote a post based on being a Christian and attending a Christian school that has a statement of faith that speaks clearly with regard to the centrality of Jesus Christ in salvation. Senator Sanders. I would simply say, Mr. Chairman, that this nominee is really not someone who is what this country is supposed to be about. I will vote no. Chairman Enzi. Senator Gardner. Senator Gardner. Thank you, Mr. Chairman. To my colleagues on the Senate committee, I hope that we are not questioning the faith of others and how they interpret their faith to themselves. Thank you for your willingness to serve our country. Mr. Vought, as I travel the State of Colorado, I hear a lot of small business owners who are struggling with Government regulations, Federal regulations, and perhaps a Congress that would like to tell people how to think and what to do. So I guess I would just like to hear from you perhaps ways that we can reduce regulatory burdens and how we can move forward with letting people live the lives the way they hope to live their lives, to run their businesses the way they hope to, without a Government deciding they can do it better for themselves. Mr. Vought. Thank you, Senator, Gardner. There are a lot of initiatives that this administration has begun to reduce the burden of regulation in this country. There has been a number of Executive orders regarding ensuring that there are two regulations removed for every new one. There is a lot of emphasis being done right now to make sure that the retrospective reviews that have been going on since the Carter administration are taken seriously and used as part of that process. There is a series of Executive orders that are designed to ask various agencies to go back and take a separate look at a number of the regulations from prior administrations that increased the costs on society. And then I think there is some statutory proposals that are worth considering. The REINS Act is one. I know Congress is working on a number of these kinds of regulatory proposals to improve the process, and it is something, if confirmed, I would love to continue working on. Senator Gardner. Thank you, Mr. Vought. One of the proposals that I have been working on with Senator Lee is legislation that would try to reduce the number of excessive regulations. It talks about if you are going to increase the national debt limit, which this country must address its debt crisis, it would require Congress to enact legislation to reduce Federal regulatory costs by at least 15 percent of the amount of the debt limit increase. Maybe that is the right number, maybe that is the wrong number, but at least it gets this country focused on the fact that if you are going to increase the debt burden on the next generation of this country, then you have to do something to spur economic activity to get more generation of revenue to the Federal Government. And one of the ways we know we can do that is through debt regulation--excuse me, debt reduction, debt-- excuse me, regulatory elimination and eliminations of unnecessary regulations. Just talking a little bit about energy savings performance contracts. We have had some pretty great successes at the Office of Management and Budget with energy savings performance contracts over the past several years, bipartisan successes, both Republicans and Democrats who have pursued performance contracting tools that save taxpayer dollars by leveraging private sector know-how, resources to make energy upgrades to Federal buildings and thereby lowering energy costs. Performance contracts have delivered around $12 billion of privately financed improvements in Federal Government buildings over the last 20 years, and that is without incurring any up- front capital costs or any special appropriation by Congress. And so bipartisan support in the House and Senate exists for the Federal Government to do more in this area. Do you agree that we should expand programs that leverage private dollars like this to deliver taxpayer energy savings to the Federal Government? Mr. Vought. Senator, I really enjoyed when you and I discussed this issue in your office and the potential that it has to save taxpayers money, and if confirmed, I would like to look into it a little bit more and see the ways that it is being done well and ways that we can improve them and to get back to you with how we could go forward. Senator Gardner. Thank you, and thank you to your family as well for your willingness to serve this country. Mr. Vought. Thank you. Chairman Enzi. Senator Van Hollen. Senator Van Hollen. Thank you, Mr. Chairman. I want to thank the witness and your family for being here. I do have to say, Senator Gardner, I do not think anybody was questioning anybody's faith here. I think the issue that Senator Sanders was raising was whether the nominee was questioning the faith of others, and he quoted the nominee saying, and I am quoting again: ``Muslims do not simply have a deficient theology. They do not know God because they have rejected Jesus Christ, His Son, and they stand condemned.'' So nobody is questioning your faith. The issue is you are now moving from a position where you were a staff member in the Republican Study Committee to somebody who is supposed to uphold the public trust for the whole country. And I think it is irrefutable that these kind of comments suggest to a whole lot of Americans that, No. 1, their religious philosophy is deficient, and in condemning them because they have rejected Jesus Christ, His Son, you are condemning people of all faiths other than Christians. I am a Christian, but part of being a Christian, in my view, is recognizing that there are lots of ways that people can pursue their God. So no one is questioning your faith, Mr. Chairman. It is your comments that suggest a violation of the public trust in what will be a very important position. Let me just read another statement that you made with respect to infrastructure, kind of sort of a garden variety expenditure here: ``All of us want better roads and bridges, but conservatives have long championed devolving the highway program to the States to collect and spend gas tax revenues as they see fit.'' That is fine. Then you go on to talk about some of the Federal highway programs, and you state, ``It is great that Republicans are proposing to consolidate programs, but rationalizing transportation policy while growing Government at an unaffordable pace harms the country. In short, it may be the difference between Chinese communism and Soviet communism, but it is still communism.'' Something you said to Red State in January 2012. My question is pretty simple: We are a democracy. This Congress, Republicans and Democrats, have passed legislation for Federal highway projects and other transportation projects. Just explain to me how that is communism. Mr. Vought. Senator, do you have that post that I could actually read right now? Senator Van Hollen. I would be happy to provide it to you, and apparently you responded to it in the course of responding to some of the committee comments, I believe. In fact, I see someone nodding yes. But I would be happy to provide it to you. Mr. Vought. Happy to take a look at that. With regard to infrastructure spending---- Senator Van Hollen. No, my question is really simple. How is it---- Mr. Vought. I would like---- Senator Van Hollen. No, unfortunately, I do not get to expand my time. My question is really simple. How is it in a democratically elected institution where we decided to invest Federal taxpayer dollars in infrastructure projects, just tell me how that is communism. Mr. Vought. Senator, with regard to infrastructure spending, I have always been someone who supports roads and bridges that work for the American people. Senator Van Hollen. That is not my question. My question is much more simple. We can have a difference of views about whether the Federal Government spends taxpayer dollars for infrastructure or whether we should send all that money to the States for that decision. We can disagree on that. My question is: How is that communism? Mr. Vought. Senator, I would like to see the post that you are referring to. Senator Van Hollen. I would be happy to provide it to you, and then I would like an answer in writing, because there is a history here of not just disagreement. We have big disagreements in this Congress. But it is making comments like that and the comment you made with respect to people of the Muslim faith or other faiths that lead people to question whether you can fairly sort of execute the public trust. [The referenced information was not provided at press time.] Senator Van Hollen. Let me ask you about the deficit and debt, and I am not going to go into detail. We had this conversation with Director Mulvaney. But anybody who claims that this budget that was proposed actually balances on any kind of credible assumptions is smoking something. I mean, it is pure--it is pure Enron accounting to pretend that this budget balances at 10 years given all the things you have put in there and your growth assumptions, which have been refuted by everybody. We would all like to see that kind of growth. But nobody has put forward, unless you know the Trump administration has put forward, a credible set of policies showing how we are going to get there. Here is my question: I agree with you that we have large deficits and debt. You mentioned the bill that will be passed to your children. You are also aware, I am assuming because you have done budgets a long time, that the largest category of spending, according to the Congressional Budget Office, is what they call tax expenditures. Is that right? Mr. Vought. It is a large portion of the Federal Government, correct. Senator Van Hollen. So it is actually larger on an annual basis than what we spend on Social Security. Tax expenditures are larger on an annual basis than what we spend on Medicare. And a lot of them are there because some powerful special interest group got to Congress and got themselves a break that was not enjoyed by ordinary Americans. So my question to you is: If you believe so strongly that we should be reducing the deficit and the debt, which we should, are you willing to eliminate any of those tax breaks for the purpose of reducing the deficit and debt? Mr. Vought. Well, thank you, Senator. One of the ways that we have been--this administration has been criticized for this budget is the notion that we are double counting when we are not. The tax bill itself is meant to be deficit neutral. Now, the policy development process is in an early stage, and we cannot be specific about how the guidelines that Secretary Mnuchin and Director Cohen put forward---- Senator Van Hollen. I am sorry. I think you misunderstood my question. I am not asking whether your tax bill is deficit neutral. I am asking whether you would support closing a single tax break for the purpose of reducing the national deficit and debt. Mr. Vought. I would for the purpose of cutting taxes. Senator Van Hollen. You would be in favor of cutting taxes for--oh, for eliminating loopholes to create--to cut taxes for others, but not to reduce the deficit or debt, which, as you pointed out, is a big issue. That is not part---- Mr. Vought. A deficit-neutral tax bill---- Senator Van Hollen. That is not what I am asking. Mr. Vought [continuing]. Economic growth---- Senator Van Hollen. Would you be prepared to reduce the deficit and debt by cutting a single tax break? And, you know, Mr. Mulvaney answered no. Mr. Vought. No. Senator Van Hollen. Clearly, your answer is no, too. Thank you, Mr. Chairman. Chairman Enzi. Senator Merkley. Senator Merkley. Thank you, Mr. Chair. Welcome to the committee. Franklin Roosevelt said that the test of our progress is not whether we add more to the abundance of those who have much, but whether we do enough for those who have little. And, certainly, the effort has been made to build a ladder of opportunity so families can go up that ladder and thrive. Do you agree with Franklin Roosevelt's analysis, his test of our progress? Mr. Vought. The test being that a notion of progress in this country is the ladder of opportunity provided to all Americans? Yes, that is---- Senator Merkley. As opposed to giving more to those who have the most. Mr. Vought. Senator, I think that America stands for the principle of allowing all people, those at all scales of income, to be able to pursue their happiness. And I would not phrase the American dream in categories of rich versus poor. I would frame it in the category of a broad ladder that allows rules of the game that allow all Americans to move up that ladder with hard work and a good idea. Senator Merkley. So the budget that has been proposed eliminates 4,000 housing vouchers for low-income American families. We are actually in a state of emergency in affordable housing in Portland and some of the other parts of the State. Does that meet the test of strengthening the ladder of opportunity? Just yes or no. Mr. Vought. Senator, with regard to affordable housing, this budget was very careful to ensure that no one currently receiving---- Senator Merkley. I am asking a specific question. You can address some other group on your desire, but I am asking if eliminating these housing vouchers for Oregon and similar quantities around the country strengthens or weakens opportunity for struggling families. Mr. Vought. One of the ways that this budget was put together, Senator, was to ensure that---- Senator Merkley. I am not interested in the way it was put together. I am asking whether this program being eliminated strengthens or weakens opportunity for struggling families. Mr. Vought. I appreciate it, Senator. I am just trying to answer your question. Senator Merkley. You are not answering it. Mr. Vought. In terms of decreasing dependency on Federal programs such as this, this budget takes steps to ensure that the housing programs that we have really do meet the needs of those who need them, but as it pertains to ensuring that families that can pay a little bit more and get themselves off of affordable housing---- Senator Merkley. OK. Can you give me the short version to my final--to my other questions, because you have taken 2 \1/2\ minutes not to answer my first one. Do you believe that eliminating heating assistance in the LIHEAP program strengthens opportunity for struggling families? Mr. Vought. Senator, I think it is important not to waste taxpayer dollars---- Senator Merkley. OK, just--so you are saying yes, you think it strengthens, right? Because that is--you are just doing a long way of getting to yes, you support eliminating this program as something positive for struggling families. Mr. Vought. Well, it is a nuanced answer because the program does not work well and has a high rate of---- Senator Merkley. OK. Let us continue. Does eliminating nutrition assistance for 13,400 pregnant women, new moms, babies, and toddlers in Oregon by cutting the Women, Infants, and Children (WIC) program and doing similar across the country strengthen or weaken opportunity for struggling families? Mr. Vought. Senator, I do not think that is a fair characterization of the budget. There is no intent to cut WIC spending in this budget. In terms of timing when we set the budget, it was--we had not had a---- Senator Merkley. But it does lower--it does lower it. Mr. Vought. We had not finalized---- Senator Merkley. Do you intend to modify it then if you are using the excuse of time? Do you plan to change it? Mr. Vought. The omnibus bill had not passed. Senator Merkley. Do you support changing the budget to accommodate the fact that you did not take that into account? Mr. Vought. We support working with Congress to ensure that there is no WIC cutting, WIC funding loss. Senator Merkley. So you do intend to change the budget? Mr. Vought. We look forward---- Senator Merkley. Can you give us a---- Mr. Vought [continuing]. To working with Congress to ensure that WIC has all of the necessary spending that it needs. Senator Merkley. Does giving away, in the general outlines of the President's tax proposal, about $6 trillion mostly to the richest Americans strengthen opportunity for struggling families? Mr. Vought. Senator, I think the tax bill will lead to economic growth that will get people working again, and we have about 6 million people in this country that had previously been working and, unfortunately, cannot find jobs. And we want to change that. Senator Merkley. Does eliminating health care immediately for 14 million individuals and an estimated 23 million families strengthen opportunity for working families? Mr. Vought. Senator, we do not think that is a fair characterization of the American Health Care Act (AHCA). Senator Merkley. OK. What is your estimate of the number that will be eliminated? Mr. Vought. We have not provided an estimate yet. Senator Merkley. So why do you support it if you do not have an estimate? Mr. Vought. Senator, because we think that it goes to the heart of the problems with Obamacare as we know it right now, which is doubling the premiums across the country. Counties--I am sure you have many in your own state that do not have the ability to have options for health insurance plans. These are all things that need immediate answers to, and we are going to have to continue to studying the best analysis we can going forward. Senator Merkley. You are aware that the actions of the administration are undermining the success of the exchanges, both by eliminating reinsurance, which prevents companies from entering new markets, and that by withholding cost-sharing payments or the certainty of cost sharing, companies are choosing to leave the market, and that was the issue cited by Anthem today, and that by failing to spend the money for advertising in the last period for sign-ups, the administration undercut the successful, if you will, final sign-up period, that these actions are deliberately designed to destroy the exchanges, which was a plan that came from conservative think tanks? Are you aware of all that? Mr. Vought. I do not think that is a fair characterization---- Senator Merkley. Oh, I think it is---- Mr. Vought [continuing]. Of the administration's actions. Senator Merkley [continuing]. Extremely fair, and my time is up. Thank you. Chairman Enzi. Senator Harris. Senator Harris. Thank you. Last week, the Department of Justice's Office of Legal Counsel (OLC) released an opinion that executive branch agencies have no legal obligation to respond to congressional requests for information from individual members, including Ranking and minority lawmakers. Are you familiar with that? Mr. Vought. I am familiar with it. I have not read it, though. Senator Harris. Have you in any way been asked or directed by the White House or any agency official to limit your responses in any way to requests from Democratic lawmakers? Mr. Vought. The administration has taken the view based on OLC's opinion that, with regard to certain types of oversight requests, they should go through the committee chairmen, and with regard to Director Mulvaney, we are taking that position as well. But it is something I look forward to talking with him about, if confirmed. Senator Harris. Are you aware of any chairmen of any committees that have directed that you not respond to the requests from Democratic lawmakers? Mr. Vought. From committee chairmen? No, I am not aware of that. Senator Harris. Are you aware of any direction from anyone that you not respond or that agencies do not respond to requests from Democratic lawmakers? Mr. Vought. Again, other than what I have said in terms of trying to make sure that we abide by the memorandum of OLC to have certain types of formal oversight requests go through the committee chairmen, no, I am not aware of that. Senator Harris. And if you were to become aware of it, what do you believe your responsibility would be? Mr. Vought. Well, like I said previously to the committee this morning was that I intend to work in an open and transparent way with all Members of Congress and to look for ways that we can oversee the Federal Government to find ways to do things better, and when I do that, I will be looking to advice from our legal team. But I want to be as transparent and open in working with this committee as possible. Senator Harris. Do you believe you have a legal obligation to respond to Members of the U.S. Congress when they ask about the work you do in your official capacity, if confirmed? Mr. Vought. I have already said to this committee that I would come and testify for any reason with regard to the decisions that are made publicly at OMB. In terms of---- Senator Harris. But if questions have been submitted to you, questions for the record? Mr. Vought. I think that the OLC memo--and I have not read it--pertains to whether the administration is obligated or not. That does not get to the discretion that is involved with responding to oversight requests and trying to work with Congress in an open and transparent process. Senator Harris. So my question is: Do you believe you have a legal obligation to respond? Is your answer yes? Mr. Vought. Senator, I would have to go and understand further the OLC opinion to know what obligations I would be subject to. That said, there is a reason why I am consulting the legal team so that I can make sure that I comply with all obligations under the law and this committee. Senator Harris. Do you believe you have an ethical and professional responsibility to respond? Mr. Vought. Again, I want to work on an open and transparent way with this committee, and I think it is vital for the effective working of this--of oversight in the Congress. Senator Harris. I understand that you were involved in the production of the President's skinny budget. Is that correct? Mr. Vought. One of my jobs as a member of the beachhead team was help compile options for the President and the Director to decide upon, yes. Senator Harris. So the budget you helped draft cuts the Department of Labor by $2.5 billion and the workforce training budget by $1.3 billion at a time when there has been a number of major disruptions in our labor force. We have had that discussion in this committee. And so my question to you is that the budget that you have helped draft includes a 21 percent cut to the Department of Labor with a 40 percent cut to workforce training. How do you propose that the American worker receive the type of assistance she and he need to be able to transition into the economy of the 21st century when you have drastically cut the budget that was intended to help them make that transition so they can take on the jobs that need to be performed? Mr. Vought. Senator, one of the assumptions in this budget is that the best way to get people working is to get the economy growing, and that the best job training program is a job in the private sector. And so one of the things that this budget is trying to do is to say we need to get the country growing again at 3 percent and to bring 6 million people back into the labor force with the jobs. Senator Harris. Yes, but would you agree that--that is fine to say that we want to create jobs, but if the workforce does not have the skills to perform those jobs, then those jobs will be left empty and Americans will be left jobless. Do you understand the analysis there? Mr. Vought. I do, and the second part of my comments that I was trying to get to was that, to the extent that we think that there are job training programs that work well, this administration wants to fund them. So, for instance, we increase spending on apprenticeships because we had evidence that that particular program worked well. We have less evidence as it pertains to many of the other kind of core job training programs and their effectiveness. Oftentimes people do not actually improve their employment prospects after going through those job training programs, and we find that problematic. And in an era of scarce resources and deficits, we can no longer spend money on programs that do not work. Senator Harris. My time has expired. Thank you. Chairman Enzi. Senator Kaine. Senator Kaine. Thank you, Mr. Chairman. Thank you, Mr. Vought. When the House and the Senate reached a budget deal at the end of April, the President tweeted out a couple of days later some dissatisfaction with it and said it may be time for a ``good shutdown in September.'' That is the quote, ``good shutdown.'' Do you believe a shutdown of the United States is or can be good--of the Government of the United States is or can be good under any circumstances? Mr. Vought. Senator, I think it is important that we get out of the business of Government shutdowns, that we consider budget process reforms that put us on a situation where we have automatic continuing resolutions. Senator Portman has proposed legislation along these lines--I am not sure if you have taken a look at them--to be able to move the brinkmanship from the end-of-the-year appropriations process. The budget process is broken. Senator Kaine. So you will agree with me that there is no such thing as a good shutdown of the Government of the United States? Mr. Vought. Senator, I want to be very clear in terms of the appropriations process is broken right now, and to the---- Senator Kaine. I am asking you a very simple question. You are up for a position in the Office of Management and Budget of the Government of the United States, and I want to know your opinion as to whether there could ever be a good shutdown of the Government of the United States, in your opinion. Mr. Vought. My opinion tracks with the Director's opinion that a Government shutdown that came from an ability to get out of the level of brinkmanship that we currently find ourselves in in the appropriations process would not necessarily be a bad one. That said, Government shutdowns are---- Senator Kaine. So you could foresee some circumstances where you think a Government shutdown would be good or would not necessarily be bad? Mr. Vought. Senator, right now you have an appropriations process in which---- Senator Kaine. I am just--I am real simple. I know the process, do not have to explain it to me. Mr. Vought. No, I understand that. I am not---- Senator Kaine. President Lincoln, the founder of your party, said he wanted to know whether Government by, of, and for the people shall continue to exist on the Earth. That was what his Gettysburg Address said. I do not think the Government should be shut down, of this Nation, for a week, for a month, for a year, for an hour, for a second. And I want to know whether you see any circumstance under which a Government shutdown would be good, as President Trump called for. Mr. Vought. I am not---- Senator Kaine. Because I will tell you, if you leave the door open that a shutdown would be good, I am voting against you. I am going to vote against anybody for a budget and management position who cannot repudiate the notion that shutting the Government down is a very, very bad thing. If you think it could be a good thing, that is your opinion. You are not going to get my vote. Mr. Vought. Senator, the appropriations process is broke, and we have a House and a Senate---- Senator Kaine. Let me ask it this way: I think any shutdown of the Government of the United States is a horrible thing. Do you agree with me? Mr. Vought. Senator, it depends on the level of---- Senator Kaine. All right. You do not agree with me. Mr. Vought [continuing]. And who shuts the Government down. It is not the President of the United States. Senator Kaine. But it depends. So shutting the Government of the greatest Nation on Earth down could be OK. It could be fine. Mr. Vought. If Congress does not continue to send bills that meet the President's expectations for what he would sign and---- Senator Kaine. It is better for the Government of the United States to be shut down. Mr. Vought. Senator, the appropriations process---- Senator Kaine. I mean, that is the implication. Mr. Vought [continuing]. Is broken. Senator Kaine. It may be broken, but you should shut the Government of this country down--we are in year 230 of the Constitution written by Madison and others in Philadelphia in September of 1787. You want to be at the Office of Management and Budget, but you will not tell me that shutdown is a bad thing. That is an extremely telling admission. That is an extremely telling admission. The last thing I am going to ask you is this: Your testimony talks about your parents. I think this is interesting, your written testimony: ``I often have wondered what they would have been free to build and give without such a high burden.'' The previous sentence is: ``My parents worked really long hours to put me through school. But they also worked long hours to pay for the Government in their lives, and I often have wondered what they would have been free to build and give without such a high burden.'' Is that how you see the Government of the United States? Mr. Vought. I do see the Government of the United States as a good thing that protects our rights as citizens to life---- Senator Kaine. I do not see that in your testimony. Mr. Vought [continuing]. And the pursuit of happiness. That said, we have an excessively large Federal Government. Right now, we spend $4.6 trillion---- Senator Kaine. I mean, the thing that is interesting is I do not see anything in here about the Government that is good. Wasn't your mom a school teacher? Mr. Vought. She was, Senator. Senator Kaine. And was she a public school teacher? Mr. Vought. For a portion of her time, yes. Senator Kaine. So that was government, right? Some local government. Some people, including people who did not kids, were paying taxes to hire your mom to teach kids, and you went through the public schools, right? Mr. Vought. I did not. Senator Kaine. So at no point along the way were you a public school student? Mr. Vought. I was not, Senator. Senator Kaine. But your mom was being paid. So when you talk about the high burden that your parents experienced to pay taxes, some of those taxes that were being paid were to pay your mom to do a very honorable job, teaching kids in public schools. Mr. Vought. It was certainly honorable and it is not---- Senator Kaine. I give credit to her and all teachers. Mr. Vought. I am not here to say that there is not a role for Government. Please do not misread what I said in my testimony. I am saying that to the extent that our Government is excessively large and we spend $4.6 trillion at the Federal, State, and local level that happens to track with the amount that Americans pay for food, clothing, and shelter, I think that is imbalanced. Senator Kaine. It is a matter of emphasis, and I would agree there are problems, too. We might have the opportunity to work on some of them. But when the lead argument about your folks is worrying about the high burden that they had to pay because of the Government of this country and your mom was a public school teacher and you could not find anything else good to say about Government in here, I think that is very telling. Thank you, Mr. Chair. Chairman Enzi. Senator Stabenow. Senator Stabenow. Thank you very much, Mr. Chairman. Welcome. You are here at a very, very difficult time, as you know, a lot of very serious things in front of us, and let me first say that also in your testimony you talk on a number of occasions about the current national debt, $20 trillion national debt. The President has proposed a tax cut geared to the wealthiest Americans, sort of hoping it will trickle down to everybody else. But that is at least $5.5 trillion in costs not paid for, so I assume that it would add at least $5.5 trillion to the national debt. Do you think that is a good idea? Mr. Vought. Senator, I do not think that is a fair characterization of what the President has put forward in his guidelines for tax reform. Some of those numbers that you mentioned are various outside groups that have scored various aspects of the proposal that is still in the policy development process. Senator Stabenow. Well, how much do you think adding to the debt is a good idea? I mean, $3 trillion, $4 trillion? Five? I am not sure what his---- Mr. Vought. The President's budget assumes a deficit- neutral tax reform bill, that any reductions in revenues from rate cuts or repealing the estate tax would come from broadening the base, eliminating special interest tax provisions, and getting rid of those types of provisions in the code. Senator Stabenow. We have not seen this happen before in our history, these kinds of proposals. But let me move on. Let me talk about another part of the benefit of being an American and driving on the roads, water systems, infrastructure, and the American Society of Civil Engineers has given America's infrastructure a D-plus rating. And so when we look at the President's budget, I have a lot of concerns. I guess I would start by asking if you value and if the administration values rural communities and the infrastructure in rural communities. Mr. Vought. The administration certainly values rural communities. Senator Stabenow. Well, let me ask why, then, the entire Rural Development Water and Sewer Program is eliminated in the President's budget, the support for small airports is eliminated, so all the small towns in northern Michigan that get two flights a day, you know, in and out of the major cities that allow people to be able to travel and do business and be involved in visiting our beautiful rural Michigan is eliminated. I mean, that is infrastructure. And we also have a situation where what is being proposed for the way to fund infrastructure, as I understand it, in the President's infrastructure proposal is basically to turn most of the funding for that over to Wall Street investors or maybe a foreign country wants to buy a road, maybe Saudi Arabia wants to buy a road. You know, the President talks about buy America, hire America. How about owning America? But all of this adds up to a situation where the little town where I grew up in northern Michigan is going to lose if we are eliminating water and sewer, if we are eliminating support for small airports. I do not see any major Wall Street investors being willing to invest in the water and sewer system in Clare, where I grew up, or the roads going up to the Upper Peninsula. So what do you tell people in rural Michigan about this budget and what it says about support for the quality of life in their communities? Mr. Vought. Thank you, Senator. A couple things. First, it stands for the proposition that the best thing that can happen for people in rural America is having an economy that is growing again. But let me get to the specifics that you brought up. With regard to the U.S. Department of Agriculture (USDA) Rural Infrastructure Program, that is a program that predates the State revolving funds at the Environmental Protection Agency (EPA). And even though EPA saw serious reductions in this budget, one of the things that we protected was the State revolving funds because we think those are so crucial for the very types of water and sewage infrastructure that you are talking about. With regard to essential air service, that is a program that consistently gets on every Government Accountability Office (GAO) report about programs that do not work, that have high subsidy costs per flight, flights are empty because no one is on them to fill them. So we eliminate the discretionary portion of that program, but we retain a portion for mandatory for rural areas, specifically to address communities like your own. Senator Stabenow. Well, let me say, first of all, I would love to have you take a flight with me when I am flying up to Marquette or Alpena or Traverse City on full flights, and it is very important. And when you are flying all the way up to the Upper Peninsula of Michigan, those flights are absolutely critical to connect businesses, hospitals, educators, citizens to the lower part of our State as well as across the country. But let me just stress one more time: What you are doing at EPA is not going to take the place of the Rural Development Water and Sewer Program which serves about 20 million people in our country. I can take you to every part of Michigan, and you will see efforts that have gone on that have created quality of life, clean water, roads, small businesses as a result of programs that are being eliminated in this budget. Thank you, Mr. Chairman. Chairman Enzi. Thank you. Senator Kennedy. Senator Kennedy. Thank you, Mr. Chairman. Mr. Vought, how are you? Mr. Vought. Good, Senator. Senator Kennedy. How big is the national debt? Mr. Vought. $20 trillion. Senator Kennedy. So that would be $2,000 billion. Is that right? How long would it take me to count to a billion, do you think? Mr. Vought. Quite some time. Senator Kennedy. I did the math before I came. If I counted to a billion one numeral a second, it would take me until 2047. Doesn't that just take your breath away? Mr. Vought. It does, Senator. Senator Kennedy. Now, how did we run up $20 trillion worth of debt? Mr. Vought. Well, Senator, I think we got to that place by no longer considering about the constraints or what we have to spend when we had the same conversation about what we need to spend on, when we lost the connection between the two, like every other family in this country, which is they say we are going to figure out what we are going to spend and it is going to be based on what we have to take in, what our salaries are, what other income resources we have, I think that is when we went off the rails from a fiscal standpoint. Senator Kennedy. I think we got--and I agree with your analysis. I think of it in terms that are a bit simpler. Every year we have been spending more than we take in, and we borrow money to fill the hole. Right? Mr. Vought. Correct. Senator Kennedy. And those deficits, those annual deficits, accumulate and we end up with $20 trillion worth of national debt that my son and my grandson, if I have one, and his children are going to have to pay off. How would it work in your family if you just took your credit card and every month you and your better half just charged whatever you wanted to and never worried about paying it back? How long could you survive? Mr. Vought. Not very long. Senator Kennedy. Have you ever seen a nation spend itself into prosperity? Mr. Vought. No, sir. And, in fact, I think the historical record is that nations that spend themselves into debt situations go by the wayside. Senator Kennedy. I have not been here very long, but it seems to me there are sort of two groupings of people around Congress. There is one group that believes that Government can spend your money better than you can and Government knows better than you do, and if you just give enough of your money to Government and listen to them, do what they say, they know what is best for you and your family. And there is another group that believes that people can spend their money better than the Federal Government can. Which group do you belong in? Mr. Vought. I believe families and local communities can spend their money far better than politicians can in DC. Senator Kennedy. Because that is what I see developing in Washington, and it is not a Republican versus Democrat thing. I think there are some Republicans that may disagree with what I say, and there are some Democrats, my friends on the other side, that may agree. But there are basically two groups of people now. There are people who believe in more freedom and more free stuff, and we cannot afford all the free stuff we have. And it upsets me when people say, well, the American people, they just do not want to help folks who are not as well off as they are when we are spending $1 trillion a year in state and local social programs. In this country, if you are hungry, we feed you. If you are homeless, we house you. If you are too poor to be sick, we will pay for your doctor. But we have to be mindful of the budget. And I want you to take a message back to the Director for me. First, I want to congratulate you on your service in Government. You have an extraordinary resume. And I want you to take a message back to the Director after you are confirmed. I want you to tell him--thank him. Thank him for trying to get the spending under control. Thank him for admitting what is obvious to any reasonable American, and that is that there are billions of dollars worth of waste in this budget, and help him get rid of it. Mr. Vought. Thank you for that, for your kind words, and I will certainly put that message back to the Director. Senator Kennedy. And I am going to get gaveled, but be aware, there are some people around here that are just going to hate you because you were nominated by a President they do not like or because you are standing in their way to spend every single dime that the taxpayer has and then they want to go hunting for more. So do not expect to be popular. But I know you know that. Mr. Vought. I look forward to treating all people with dignity and respect, Senator. Senator Kennedy. I know you will. Thank you. Thank you, Mr. Chairman. Chairman Enzi. Thank you. I want to thank Mr. Vought for appearing before the committee today. Your full statement will be included in the record. I also want to thank you for bringing your family and want to congratulate them on their extreme patience. I know this is the second hearing today, not the first, and afternoons sometimes get a little long. But I wish we had this kind of entertainment at all of our hearings. [Laughter.] Chairman Enzi. I look forward to watching as they grow up. As information to all Senators, questions for the record are due by 12 p.m. tomorrow, with signed hard copies to be delivered to the committee clerk in Dirksen 624. That is in response to some who think that they might like to have additional questions or have more specificity. Under the rules, Mr. Vought, you will have 7 days from receipt of our questions to respond with the answers, which fits with the oath that you took at the beginning, and I think you actually answered some of the questions that you got. So with no further business, this hearing is adjourned. [Whereupon, at 3:43 p.m., the committee was adjourned. Additional materials submitted for the record follow.] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Post-Hearing Questions from Ranking Member Bernard Sanders with Answers by Russell T. Vought [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Post-Hearing Questions from Budget Committee Members with Answers by Russell T. Vought [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] EXECUTIVE BUSINESS MEETING TO CONSIDER THE NOMINATION OF RUSSELL T. VOUGHT, OF VIRGINIA, TO BE DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET ---------- WEDNESDAY, JUNE 14, 2017 U.S. Senate, Committee on the Budget, Washington, DC. The committee met, pursuant to notice, at 4:49 p.m., in room S-211, The Capitol, Hon. Michael B. Enzi, chairman of the committee, presiding. Present: Senators Enzi, Grassley, Crapo, Graham, Toomey, Johnson, Corker, Perdue, Gardner, Kennedy, Boozman, Strange, Sanders, Merkley, and Harris. Staff present: Eric Ueland, Republican staff director; and Warren Gunnels, minority staff director. Chairman Enzi. I will call this committee meeting to order. We will vote on the nomination of Russell Vought to be the next Deputy Director of the Office of Management and Budget. We will withhold statements at this time. I do intend to support the nomination and I hope you will, as well. Unless Senator Sanders has something to add, we will move directly to vote on the nomination. The clerk will call the roll. The Clerk. Mr. Grassley. Senator Grassley. Aye. The Clerk. Mr. Crapo. Senator Crapo. Aye. The Clerk. Mr. Graham. Senator Graham. Aye. The Clerk. Mr. Toomey. Senator Toomey. Aye. The Clerk. Mr. Johnson. Senator Johnson. Aye. The Clerk. Mr. Corker. Senator Corker. Aye. The Clerk. Mr. Perdue. Senator Perdue. Aye. The Clerk. Mr. Gardner. Senator Gardner. Aye. The Clerk. Mr. Kennedy. Senator Kennedy. Aye. The Clerk. Mr. Boozman. Senator Boozman. Aye. The Clerk. Mr. Strange. Senator Strange. Aye. The Clerk. Mr. Chairman. Chairman Enzi. Aye. The Clerk. Mr. Sanders. Senator Sanders. No. The Clerk. Mrs. Murray. Senator Sanders. No by proxy. The Clerk. Mr. Wyden. Senator Sanders. No by proxy. The Clerk. Ms. Stabenow. Senator Sanders. No by proxy. The Clerk. Mr. Whitehouse. Senator Sanders. No by proxy. The Clerk. Mr. Warner. Senator Sanders. No by proxy. The Clerk. Mr. Merkley. Senator Merkley. No. The Clerk. Mr. Kaine. Senator Sanders. No by proxy. The Clerk. Mr. King. Senator Sanders. No by proxy. The Clerk. Mr. Van Hollen. Senator Sanders. No by proxy. The Clerk. Ms. Harris. Senator Harris. No. Chairman Enzi. The clerk will report the vote. The Clerk. Mr. Chairman, there are 12 yeas and 11 nays. Chairman Enzi. How many of the nays are proxies? The Clerk. Eight proxies. Chairman Enzi. Thank you. Statements for the record must be submitted by 12 o'clock p.m. tomorrow with a signed hard copy delivered to the committee clerk at Dirksen 624. Thank you. The meeting is adjourned. [Whereupon, at 4:55 p.m., the committee was adjourned. The following prepared statement by Senator Charles E. Grassley was submitted for the record subsequent to the executive business meeting.] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]