Chuck Schumer for U.S. Senate: News Articles

Schumer: Hiring jobless could bring firms tax breaks

Mon, 01 Mar 2010 00:00:00 -0800

ROME — Legislation recently passed in the U.S. Senate could provide tax break to local businesses who hire unemployed persons, Sen. Charles Schumer, D-N.Y., said here Monday.

That could help persons such as Chuck Obernesser, 56, of New Hartford, who attended Schumer's event at Assured Information Security Inc.

He said he has been unemployed since he lost his job more than seven months ago as fixed operations manager of Saturn of the Mohawk Valley, which closed.

Obernesser said he hopes the legislation is able to create permanent jobs to assist the unemployed.

“Right now, we need all the help we can get to get people back to work,” he said.

The legislation, introduced by Schumer and Sen. Orrin Hatch, R-Utah, would offer tax breaks to companies that increase their work force by hiring workers who have been unemployed for 60 days or more. The businesses wouldn't have to pay the employer's share of Social Security taxes for the worker for 2010.

Schumer said this would directly help create jobs because it would give businesses considering starting to hire again an incentive to make the move.

“This will push them over the edge,” he said.

Almost 849,000 people in the state - including 8,200 people in Oneida County - would be eligible to be hired through the program, Schumer said.

The Joint Committee on Taxation estimates the initiative would cost $13 billion, according to a news release from Schumer.

Schumer met Monday with some local unemployed people, officials and business leaders at Assured Information Security Inc. at Griffiss Business and Technology Park in Rome.
Assured Information Security President Charles Green said the company has about 90 employees and is looking to hire 10 to 15 new workers.

Company Director of Strategic Initiatives Igor Plonisch said he hopes the business is able to take advantage of the legislation.

“But the key with this is it's there, and it's an opportunity for businesses - especially small businesses,” he said.

The legislation passed in the Senate last week with a vote of 70-28, Schumer said. Because of the bipartisan support, Schumer said he believes it would pass the House of Representatives this week and be signed into law by President Barack Obama within a week.

The program provides greater benefits to businesses for hiring people sooner, Schumer said. Also, for every new employee kept on the payroll for 52 continuous weeks, the business would receive an additional $1,000 credit on its 2011 tax return, he said.

Schumer said the legislation is beneficial because it is bipartisan, immediate, simple and goes directly to creating jobs.

“Every nickel that is spent is because someone new was hired,” he said

Schumer Jobs Proposal Should get Quick Senate Approval

Tue, 09 Feb 2010 00:00:00 -0800

Schumer jobs proposal should get quick Senate approval

Cutting taxes for hiring unemployed should help.

The Senate's new focus on job creation could result in action, rather than just talk, in a matter of days.

That's good, because lawmakers need to prove to voters that they're serious. Even better is that both Democrats and Republicans are voicing support.

Last week, Sen. Chuck Schumer and Sen. Orrin Hatch, Republican from Utah, released a plan that gives tax cuts to employers who hire people who have been unemployed for at least 60 days. Employers would not have to pay their share of the Social Security payroll tax on eligible workers hired in 2010.

The bill is a better tactic than the tax credits that President Obama has proposed because employers get immediate relief. Under the Schumer plan, employers who keep these new hires on the payroll for 52 consecutive weeks would get an additional $1,000 credit on their 2011 tax return.

It's expected that the Schumer-Hatch proposal will be part of a larger bill the Senate plans to unveil this week.

That bill would also extend unemployment benefits for people whose benefits have run out, and it would renew the subsidy for health insurance premiums under the COBRA program.

The House barely passed its own jobs bill at the end of 2009. That bill also extended unemployment benefits and the COBRA subsidy, but also had a controversial provision — taking $75 billion in money earmarked for the Wall Street bank bailout and using it for infrastructure and aid to states.

The Senate bill is the one lawmakers should concentrate on getting to Obama's desk quickly, while recognizing that employers won't add jobs until they feel confident the economy is recovering. That's why Congress must examine other tactics, such as getting lenders to loosen up credit, to improve the business climate.

Schumer Completes State Tour

Mon, 11 Jan 2010 00:00:00 -0800

With his visit to the Schenectady County Proctors Theatre recently, U.S. Sen. Charles E. Schumer, D-New York, completed his 62-county tour of New York for the eleventh consecutive year.

Among Schumer's work this year was a provision included in the stimulus package that sent billions of dollars directly to New York's county governments to stave off layoffs and property tax increases; enacting into law his legislation to provide middle class families with a $2,500 college tuition tax credit; securing millions of dollars for New York families devastated by storms; saving thousands of jobs by convincing General Motors to repurchase two Delphi Automotive parts plants; securing almost $300 million in direct aid for the nation's dairy farmers who are struggling through one of the worst crisis in recent memory and keeping open the Hickey Freeman franchise in Rochester and saving hundreds of jobs in the process.

Schumer's 2009 tour of New York included 13 trips to Albany; 16 to Erie; 17 to Monroe; 14 to Onondaga; and 22 to Westchester and Rockland counties. He also made a total of 11 trips to the North Country, 12 trips to the Southern Tier, 25 trips to the Capital Region, 25 trips to Western New York, 47 trips to the Hudson Valley, 26 trips to Central New York and 25 trips to the Rochester-Finger Lakes.

"As a state and nation, we all worked hard this year to make our way through tough times. This year certainly had as many challenges as it did milestones, but without a doubt my highest accomplishment is visiting all 62 counties in New York for the eleventh year straight," Schumer said. "What I am able to achieve in Washington is directly related to my county visits. Meeting the people and seeing firsthand what they're going through is a vital part of how I go about working to solve problems in their communities. Next year will be a great year and I can't wait to kick off the 12th annual tour in 2010."

In March, Schumer secured almost $10 billion dollars in the American Recovery and Reinvestment Act for county governments and school districts. Schumer authored the provision enacted into law as part of the stimulus bill that sent billions of dollars directly to county governments, thereby avoiding crushing property tax hikes and layoffs of cops and firefighters. The Recovery Act also sent billions of dollars to local school districts to avoid teacher layoffs and bridge massive budget gaps.

In August, Schumer succeeded in his efforts to help bring Yahoo! to Niagara County. After speaking with Yahoo! officials, the company announced they would be locating a $150 million data center to Lockport. Schumer helped break an impasse between Yahoo! and Verizon over the cost of local access to broadband that was among the final hurdles in sealing the deal. Schumer touted the region's well-educated, talented, and affordable work force, as well as its clean, cheap power, to entice the Yahoo! to the region. Construction will begin this coming spring and once completed, the facility will employ nearly 125 people.

In September, Schumer secured millions in FEMA assistance for flood victims after floods devastated Chautauqua, Cattaraugus and Erie counties. Schumer successfully secured funding from the Federal Emergency Management Agency. Following Schumer's urging, President Barack Obama formally amended the Presidential Disaster Declaration for the area to include individual assistance for people affected by the flooding. Individual assistance funding by FEMA will help to pay for housing for those affected and also help them recover costs to replace items damaged by the floods. Schumer also succeeded in securing assistance for businesses and municipalities affected by the floods.

Schumer also secured an increase in MILC payments for dairy farmers. Schumer sponsored an amendment providing $290 million in direct aid, up to $40 million of which will go to New York, plus another $60 million in market supports. The U.S. Agriculture Department has announced its method for distributing the direct payments, which will benefit states with predominantly smaller dairy farmers. As the USDA considered methods to distribute the funding, Schumer fought, through letters and personal phone calls, to ensure the funds would go to the nation's smaller farms where it was needed most, and pushed to have the aid delivered by Christmas. Both of these requests were accepted and incorporated into the USDA's payment method.

Schumer Helps Make Federal Funds Available to Revive aEUR~Street of DreamsaEUR(TM)

Fri, 08 Jan 2010 00:00:00 -0800

GLENS FALLS — New Way Lunch owner Pete Gazetos served up the city’s most famous treat, a "Dirty John’s" hot dog, to U.S. Sen. Chuck Schumer on Thursday.

This spring, Gazetos plans to renovate the exterior of his decades-old business on South Street, where Schumer is making $1 million in federal funds available for infrastructure improvements such as storm sewers, new sidewalks, Victorian lighting and trees.

By giving the so-called "Street of Dreams" a facelift, it’s hoped that other businesses will decide to invest and locate there as well.

"You re-do a street and it brings in private dollars," Schumer said. "It’s really a catalyst. Glens Falls is a city with grit. It’s had some decline, it’s really come back. It’s sort of a model for middle-sized cities. If it can happen in Glens Falls it can happen in lots of places in upstate New York."

South Street represents the final piece of a more than decade-long downtown revitalization, whose highlights include a new five-point traffic circle, numerous building renovations and Glens Falls Hospital’s major expansion. The Mill, a major project overlooking South Street, was done by Saratoga Springs-based Merlin Development Co. Built for luxury condominiums, the property has been sold to a new entity that’s marketing it as apartments.

Schumer and Mayor Jack Diamond outlined plans for South Street at a press conference inside the former Empire Theatre, built in 1899, where owners Michael and Susan Kaidas have spent $2.5 million converting the historic building to retail, office and residential space.

"In New York City you would pay $2 million for a place like this," Schumer said, admiring a handsome third-floor loft. Eight of 11 apartments are occupied and only one office space is yet to be filled. Commercial tenants include Glens Falls National Bank’s audit department and The McDevitt Group realtors.

Businesses are still sought for the site’s first-floor retail space. Kaidas, originally from Schenectady, also own a commercial building adjacent to Charles R. Wood Theater on Glen Street and the building where Red Fox Books is located at 28 Ridge St.

Diamond said South Street construction bids will go out in February with work expected to start by early April, completed sometime in November. Separately, a major upgrade is also planned for the corridor connecting downtown to Northway Exit 18, which links directly into South Street. So one of the city’s main gateways will soon have a whole new look.

Thursday’s visit was Schumer’s third to Glens Falls in the past year and his 18th visit to Warren County since taking office a dozen years ago. "It’s nice to see the senator show this kind of enthusiasm for a little town like ours," Gazetos said. "I’m glad he went to bat for us. It’s a step in the right direction."

Assembly member Teresa Sayward, R-Willsboro, said, "What has happened here is really what government should be doing, partnering with private developers."

However, South Street’s long-term rebirth won’t come without challenges. The Madden Hotel is home to nearly 30 lower-income residents. Diamond said restoring the old building for apartments or condominiums would cost at least $1.5 million. A better option might be razing it for new construction space.

Diamond said the city is already trying to identify new places for hotel occupants to live.

"You have to do things with humanity," Schumer said. "South Street is the last of the major streets that needs attention. This is really an investment that’s going to pay back many, many times over."

Schumer Wants LIHEAP Contingency Money Released

Fri, 08 Jan 2010 00:00:00 -0800

Senator Charles Schumer (D-NY) is urging President Obama to release millions of dollars from a contingency fund set up to help deal with unexpected higher demand for energy assistance, an article on LoHud.com reported on Thursday. While addressing a group at the J. Edward Fox Senior Center in Mount Kisco, Schumer said that Obama should release $590 million from a fund that is part of the $5.1 billion appropriation for the Low Income Home Energy Assistance Program, or LIHEAP.

Schumer told the group of about 50 senior citizens that, “Because so many people are applying (for heating assistance) and because it’s so cold and because the price of oil is so high, we need to tap that emergency funding now.” The senator added that he believes Obama is likely to sign off on releasing the money, because it is already part of the 2009-10 federal budget.

Schumer’s remarks follow those of New York’s junior senator, Democrat Kirsten Gillibrand, who recently urged New York state residents to apply for heating assistance, because the state’s LIHEAP funds are underused. She also encouraged residents to take advantage of the state’s $500 million dollars devoted to weatherization efforts, courtesy of the federal stimulus package.

Schumer said that in the last two months, 1,700 people in Westchester County have applied for LIHEAP assistance, as have 1,100 in Putnam County and another 1,100 people in Rockland County.

The senator’s spokesman, Max Young, said that about $2.5 million in LIHEAP assistance was given to Westchester residents from November 2008 to May 2009.

While New York’s funds go underused, other states are struggling to meet residents’ need for heating assistance, as the recession drives many homeowners to seek LIHEAP funds for the first time. The Pennsylvania Department of Public Welfare, which administers the state’s LIHEAP program, this year had to lower the income-eligibility requirement by $11,368, because its funding for 2009-10 was reduced by about $55 million. Pennsylvania’s LIHEAP program received a record amount of funding last year.

Vermont’s LIHEAP program could end up assisting more than 27,000 families, which would top last year’s record by at least 1,000. The Ohio LIHEAP office had to readjust its income guidelines to allow people more access to home heating assistance.

On Oct. 22, the U.S. Department of Health and Human Services said that it would provide more than $2.6 billion in LIHEAP money to states to help people heat their homes during the last 3 months of 2009. Department spokesman Kenneth Wolfe told LoHud.com in an e-mail Wednesday that, “We have not made an announcement on the next round of funding, but will do so very soon.”

Schumer to National Grid: Keep jobs in Syracuse

Thu, 07 Jan 2010 00:00:00 -0800

SYRACUSE, N.Y. -- U.S. Sen. Charles Schumer said today that he has urged National Grid’s top American executive to avoid outsourcing jobs and was assured the company will consider his input.

At a news conference in front of National Grid’s building on Erie Boulevard, Schumer said he spoke Wednesday with Tom King, president of National Grid in the U.S., about reports that the utility might outsource high-paying IT jobs, including 200 jobs in Syracuse.

King didn’t promise to avoid outsourcing, but said he would weigh the senator’s concerns, Schumer said. “The tone of his conversation gave me hope,” said Schumer, D-New York. “He said he would look at our demands and get back to me.”

The Post-Standard reported two weeks ago that National Grid had initiated a series of requests for proposals seeking outside vendors to take over many functions performed by the utility's information services department.

According to employees who were briefed on the matter, some 200 National Grid jobs in Syracuse could be at risk. About 1,000 other employees and contractors throughout the Northeast also could be affected, employees said. King told Schumer that no decisions have been made.

“I think we reached him at the right time, before any decisions are made,” Schumer said. “The conversation went well, but, rest assured, I am not going to stop with one phone call.”

Schumer’s remarks brought applause from several dozen National Grid employees and union leaders who gathered for the event. Alberto Bianchetti, speaking for National Grid, said King welcomed Schumer’s input.

“We have a common interest in the economic development and vitality of Upstate New York, and certainly take his concerns to heart,” Bianchetti said.

National Grid will evaluate the proposals from outside vendors before making decisions about outsourcing, Bianchetti said. “The process is going forward,” he said.

Plan in Congress Could Cay off Locally

Tue, 05 Jan 2010 00:00:00 -0800

Erwin, N.Y. - A push to provide federal incentives for emissions-reducing equipment for diesel-powered vehicles may benefit Corning Inc.

Sen. Charles Schumer, D-N.Y., said Tuesday during a stop at Corning Inc.’s Erwin diesel plant that he and other senators are pushing for more funding for the Diesel Emissions Reduction Act.

The federal program, launched in 2005, provides funding for non-profits such as school districts to purchase filters that reduce emissions from diesel-powered vehicles, such as school buses.

Corning Inc. is one of only a handful of companies that manufacture the filters.

“But (the program) has been drastically under-funded,” Schumer said.

“We have a huge opportunity here to spur economic development and help improve the air quality everywhere.”

Tom Hinman, Corning Inc.’s senior vice president of environmental technology, said Schumer’s efforts, if successful, would be a great boost to the company.

“It would increase demand,” Hinman said. “More business would ultimately create new jobs, but we’ll have to see how Congress acts on this. Clearly it will take some time, but ultimately we’re hopeful it happens.”

Along with boosting the companies that manufacture the products, the Diesel Emissions Reduction Act has been successful from a public health perspective in reducing diesel emissions, which contribute to respiratory problems and global warming, Schumer said.

But despite the program’s success, funding has been limited. Approximately $1 billion was authorized for the program from 2005-2010, but only $470 million has been used, according to Schumer.

Another $1 billion worth of applications to the Environmental Protection Agency, which administers the program, are awaiting funding. Schumer said he will push for the funding to be included in an upcoming federal aid package aimed at stimulating jobs.

“When Congress next meets I will push to fund the clean diesel program,” Schumer said. “I will urge the EPA to target funding to products that can be added after a vehicle is already built.”

He was referring to products such as Corning Inc.’s diesel particulate filters, which were developed by Corning Inc. 20 years ago, Hinman said.

“Funding the DERA program is a smart investment in our nation’s energy future that will spur economic development and job growth,” Schumer said. “At a time when our country is looking for ways to quickly create jobs and clean the environment, DERA stands out as a prime example of a program that works.”

Schumer Introduces Five Point Plan

Tue, 05 Jan 2010 00:00:00 -0800

CHEEKTOWAGA, N.Y. (RELEASE) - With the details of the security breakdown that led to the Christmas terror attempt still emerging, U.S. Senator Charles E. Schumer today unveiled a new comprehensive five-point plan to close some of the gaping holes in foreign airport security that may have allowed the terrorist to slip through the cracks.

Schumer’s plan calls on all the stakeholders involved in foreign airport security, including the U.S. government, foreign governments and airports, as well as airlines, to make immediate changes. Those changes include calling on airlines to threaten not to fly to foreign airports found to be lax with respect to security, demanding that foreign countries turn over all visa information, particularly information related to past travel to potentially hostile countries, and requiring the U.S. government to review and possibly revoke any outstanding travel visas if a visa-holder is placed on any of the terror watch lists.

“This incident shows that more than eight years after the 9/11 attacks, there are still gaping holes left in our aviation security system, particularly overseas. There has been a great deal of time and effort spent trying to close these holes but the Christmas Day terror attempt must be a wakeup call to show that more needs to be done. My plan puts forward some common sense solutions to close these gaps in a quick and cost effective way.”

President Obama called the Christmas terror attempt a “systemic failure” of aviation security. Schumer today agreed with that characterization, but said there are several fixes that can be achieved immediately to protect against a similar terrorist incident or attack. On Christmas Day, Umar Farouk AbdulMutallab was accused of trying to ignite explosives smuggled aboard the plane in his underwear.

Despite his name being included in a federal terrorist database, warnings from his father that he me have become radicalized, suspicious trips to Yemen, and having passed through security measures at Lagos and Amsterdam airports, AbdulMutallab was still able to board a plane bound for the U.S. with explosives strapped to his groin.

In the past, Schumer has raised serious concerns about the Transportation Security Administration (TSA) and its efforts to ensure that foreign airports comply with security requirements for U.S. bound flights. According to U.S. law, any flight that takes off from a foreign country but is bound for the U.S. must follow U.S. security procedures for both passengers, bags, and other aspects of the flight. However, Schumer had pointed out that the TSA only employs a few dozen Transportation Security Administration Representatives (TSARs) to monitor, review and enforce security at all airports around the world that connect with U.S. airports.

Schumer today also raised questions about why AbdulMutallab’s travel visa to the United States was not revoked when he was added to the terrorist database called the Terrorist Identities Datamart Environment (TIDE). Despite being added to this database, the current process in place failed to require a mandatory and expedited determination by the national counterterrorism center and the department of state about whether or not his visa should be revoked. In addition, U.S. counterterrorism officials were not informed that Abdulmutallab had another active visa to travel to Yemen and had made at least one trip there.

Schumer today said these facts combined with other historical flaws in aviation security – lack of adequate screening technology, cumbersome, duplicative, and disorganized terrorist watch lists, and faulty intelligence sharing – created a security web that AbdulMutallab and potentially other terrorists have and can exploit.

Schumer also pointed out that most of the recent air terror incidents originated not from domestic U.S. flights, but from flights abroad bound for the U.S, including the shoe bomber on a flight from the United Kingdom to the U.S.

In response to this and potentially other threats, Schumer today outlined five steps the federal government can take immediately to significantly beef up foreign airport security. Schumer said these proposals do not solve all the problems, but they are common sense steps the government can implement quickly and at minimal cost.

Call on U.S. Airlines to Threaten to Stop Flying to Foreign Airports Known to Have Lax Security – Schumer said that while federal law requires foreign flights bound for the U.S. to follow U.S. security procedures, enforcement of this rule by the federal government has been lacking. Schumer said that U.S. airlines also have a responsibility to keep their passengers safe and the best way to do that is to ensure that the airlines they fly from follow security rules. Schumer today wrote to the heads of the major airlines asking them to immediately report any known security issues at foreign airports to U.S. security authorities and threaten those airports that they will cease service to and from those airports if security isn’t improved.

Penalties for Foreign Airports that Don’t Comply with U.S. Security Rules -- Schumer is also pushing for penalties to be implemented against countries that do not comply sufficiently with U.S. airport screening standards. Schumer says the penalties for non-compliance should be as follows: if the country is part of the visa waiver program, there should be very serious consideration as to whether the non-compliance is serious enough to merit revocation of the visa waiver program. If the country is not part of visa-waiver program, then enhanced screening will have to be done before anyone is given a visa to travel into US from that country.

Immediate Review of All Travel Visas for Anyone Added to Any Terrorist Database – Schumer today called on the State Department as well as the National Counter Terrorism Center (NCTC) to immediately require that there be an expedited review and mandatory decision on whether revocation of a visa should occur for anyone and everyone who is added to any of the major terrorist databases. Schumer said that this review and decision must be made within 14 days of a name being added to the database. In addition, any person included in the terrorist database should be blocked from receiving a new travel visa pending a thorough review.

Worldwide Information Sharing of Adjudications of Visa Applications – Schumer today called on the State Department to require all countries in the world to share visa info with U.S. authorities. If any country does not want to share visa info with us, Schumer said no visas for their people coming to U.S. should be granted. The British had denied AbdulMuhammed a travel visa based on visa fraud but never informed U.S. authorities, because the denial was not based on a terrorism ground.

Foreign Travel Information Sharing – Schumer also said that any country with a travel agreement with the U.S. must share the foreign travel information of anyone seeking to travel to the U.S. This information is critical during any travel visa application process, particularly when authorities are reviewing a visa application of someone who may be included in a terrorist database. Schumer said that any country that declines this information should be denied visa-waiver status or should have its citizens prevented from receiving visas to travel into the US unless compelling circumstances can be shown. Had the US had access to this information, it would have known that Abdulmuttalub had recently traveled to Yemen, which could have raised red flags for NCTC officials to follow.

All of Schumer’s proposals could be implemented immediately, easily, and at minimal cost to airlines, airports, and governments.

New Policy Designed to Boost Military Voting

Sun, 03 Jan 2010 00:00:00 -0800

A new Department of Defense policy will make voter registration easier for U.S. service members stationed at Tyndall Air Force Base and Naval Support Activity Panama City, as well as military personnel at all other U.S. military installations worldwide.

Sen. Charles Schumer, D-NY, and Sen. John Cornyn, R-Texas, requested the DOD be required to provide voter registration materials and assistance at all U.S. military bases.

A statement on Schumer’s Web site said the new policy would turn U.S. bases into “one-stop shops” similar to state-run motor vehicle branches.

With the policy change, Schumer said the Pentagon would be required to offer voter registration forms at the time of each service member’s entry into active duty, transfer from one duty station to another, overseas deployment and on a standing basis.

The DOD would assist service members in submitting the registration forms to states.

Lt. John Skaggs, NSA PC’s voting assistance officer, said the policy change wouldn’t result in much of a change for NSA PC or its individual commands

Skaggs said the Navy base already has a check in process for incoming sailors that includes a visit with a voting officer.

He said NSA PC passes out voting information to the sailors, including a sheet from the Federal Voting Assistance Program with frequently asked voter registration questions.

“We ensure that they feel comfortable in what they’re doing,” Skaggs said, adding, “We usually aren’t the first command for most of these sailors,”

The Air Force Personnel Center Web site includes a page dedicated to helping airmen with their voting and absentee ballot questions.

According to the site, all military installations have assigned voting action officers to assist personnel and their families.

Within NSA PC, there are 18 individual commands on base, he said.

Skaggs said each command has its own voting assistance officer, and the Navy sends out a Navy-wide survey after national elections to estimate how many sailors voted.

He said all branches of the military were making a push to get their personnel registered to vote ahead of the 2010 elections.

Schumer Endorses "Cash for Caulkers"

Tue, 29 Dec 2009 00:00:00 -0800

Holley, N.Y. – Senator Charles Schumer was in Holley Tuesday, targeting the “Cash for Caulkers” program.

Schumer says the Obama administration should focus the program on communities that have older, less efficient energy housing stock, to maximize the program.

Schumer thinks this move would benefit the Rochester area because of its older homes.

"I'm proposing that the money go directly to our localities, to Orleans County and the Town of Murray and the village of Holley, rather than going to Albany. If it goes to Albany we end up never seeing most of it," Schumer said.

Early reports show the average homeowner could save up to $500 a year on their utility bills, and could be eligible to receive up to $12,000 in rebates for weatherizing their homes.

Earlier this month, President Obama proposed the plan, saying that it would reimburse homeowners for energy-efficient appliances and insulation, part of a broader plan to stimulate the economy.

Schumer Co-Sponsors Bill to Lift Business Lending Cap for Credit Unions

Tue, 22 Dec 2009 00:00:00 -0800

ALBANY, NY (12/22/2009)(readMedia)-- In a 100 percent show of support for credit unions, Senator Mark Udall (D-CO) and lead introducing co-sponsors, Senator Charles Schumer (D-NY) and Senator Kirsten Gillibrand (D-NY), introduced legislation (S.2919) yesterday in the U.S. Senate that would lift the member business lending (MBL) cap for credit unions.

The proposed bill would raise credit union's current MBL cap to 25 percent of total assets. If passed, the increased cap would allow credit unions to make more small business loans, filling the still existent, small business lending void created by commercial banks and other financial entities on the heels of the subprime mortgage crisis. The legislative fix would come at a time when our country could well use an economic boost one that would not impact the size of government or its bottom line.

This spring, Senator Schumer took a leadership role on this issue, pledging action this session. Working with the Credit Union Association of New York, Senator Schumer kept the issue in the spotlight throughout 2009. The Association worked closely to secure the support of New York Senators, Schumer and Gillibrand, who both served as original co-sponsors of the proposed legislation.

"It's remarkable to have both of our New York senators, Schumer and Gillibrand, as original introducing co-sponsors of this key legislation that will help credit unions play a larger role in economic development and job creation," said William J. Mellin, president/CEO of the Credit Union Association of New York. "We applaud Senator Schumer's leadership and support of credit unions' work with small businesses throughout the session."

According to recent analysis by the Credit Union National Association, lifting the current MBL cap could create as many as 108,000 jobs and provide as much as $10 billion in credit to small businesses in the first year the bill is enacted.

Increased credit union business lending was part of a long list of possible job stimulus initiatives included in a joint U.S. Treasury-Small Business report that was submitted following President Obama's recent White House jobs summit. To date, the only opposition to lifting the MBL cap has come from the banking industry.

The proposed legislation is similar to House bill H.R. 3380, the Promoting Lending to America's Small Business Act, which amends the Federal Credit Union Act to advance the ability of credit unions to promote small business growth and development opportunities. The bill was originally introduced by Representative Paul Kanjorski (D-PA) in July of this year. It currently has 48 co-sponsors in the House.

Area Dairy Farmers to Receive $4 Million in Federal Aid, Senator Says

Thu, 17 Dec 2009 00:00:00 -0800

Dairy farmers in the Rochester area will divvy up some $4 million in emergency direct payments to boost the struggling industry, U.S. Sen. Charles Schumer announced Thursday.

Genesee County dairy farmers will receive nearly $1.6 million, and those in Livingston and Ontario counties each will get nearly $1.3 million. Wayne County dairymen will get $429,000, those in Monroe County will get $216,000 and those in Orleans County will get $150,400.

The funding will come from the federal agriculture appropriations bill, Schumer, D-N.Y., said. Payments will arrive in the coming weeks. Some $40 million is earmarked for dairy farmers statewide, he said.

Payments will be sent automatically to farmers, who need not apply. The U.S. Department of Agriculture will calculate payments based on qualifying dairies’ total pounds of production commercially marketed from February through July, Schumer said.

“Dairy farmers are the backbone of New York’s agricultural economy, and they are in the middle of the worst crisis in recent memory,” Schumer said in a statement. “This Congressional aid could not come a moment too soon.”

Schumer: DOT lets $1M for Route 17 Expansion Idle

Fri, 11 Dec 2009 00:00:00 -0800

ALBANY, N.Y. — U.S. Sen. Charles Schumer is pushing New York transportation officials to use $1 million in already-secured funds to finally start the expansion of an often-congested upstate highway.

In a letter to state transportation officials, the New York Democrat demands that the funds be used for their intended purpose: studying and designing the widening of a 37-mile stretch of Route 17 to three lanes in both directions from Harriman to Monticello.

Schumer secured the federal funds in 2005, but he says the state has failed to even begin the study process.

A transportation department spokeswoman says they expect to select a consultant to study Route 17 expansion before the end of January based on responses to a request for proposals that was due Dec. 2. She says the study should be completed in a year.

Schumer Pushes to End Banks' ATM 'Doubling Dipping'

Mon, 07 Dec 2009 00:00:00 -0800

NEW YORK (CBS) aEUR*There's a call for a tighter crackdown on high ATM fees Sunday, and this time the push is to end so-called "double-dipping" – fees when customers are charged twice for one transaction.

ATM users say it's about time banks stop cashing in.

"They're taking advantage of you, they really are," Pennsylvania resident Marilyn Kreste said.

Customers say they're fed up with high ATM fees, especially those surcharges applied when they use an ATM at a different bank.

"This morning, I can't walk to my bank – it's too far – so I had to use another bank's ATM," ____ said. "I will get charged twice."

Senator Charles Schumer is pushing for federal regulators to end what he calls double-dipping. When you use an ATM from a different bank, you often pay a fee to that bank. Double-dipping happens when your own bank charges you, as well, for using someone else's machine.

"It's unacceptable," Kew Gardens, Queens resident Susan LaMarca said. "They can't charge both ways."

Sen. Schumer says 72 percent of banks are charging customers twice for each transaction, and that has to stop.

"Try to make an innocent withdrawal of your own money, and suddenly you end up with a whirlwind of fees and charges – and the fees have gone up 12 percent in the last year," Schumer said. "When you use the ATM machine to take out $20, even $50, a $4, $5, $6 fee is a very large fee to pay."

Some customers say they pay so much in fees to banks already that the ATM should be free.

"There shouldn't be a charge, that's how I feel," Jersey City resident Rajat Gambhir said.

Schumer says the Federal Reserve has pledged to review the rise of ATM fees.

It's time to probe frequent-flier accounts, senator says

Tue, 24 Nov 2009 00:00:00 -0800

Frequent-flier programs are coming under fire.

Sen. Charles Schumer, D-N.Y., is calling on the Transportation Department to review programs for possible "deceptive business practices," specifically for not alerting customers in advance before canceling accounts or miles.

"When a consumer accumulates valuable frequent-flier miles, they should not have to constantly worry that they are going to expire with little or no notification from the airline," he says.

Schumer wants the department to draw up rules to improve disclosure, set limits on when miles can be canceled and examine airlines' accounting treatment of the miles.

He estimates about 10 trillion unused frequent-flier miles are in circulation, worth about $165 billion. About 20% may never be redeemed, he says.

The Association for Airline Passenger Rights backs Schumer's call for a federal review, saying it has gotten complaints from travelers who have seen their miles expire even after following terms and conditions. "I think they're using a lot of tactics and gimmicks," says Brandon Macsata, executive director of the passenger advocacy group.

James May of the Air Transport Association says federal interference isn't warranted. Airlines spell out terms and conditions of their programs, including "advance notice" of major changes, he says.

Schumer's call comes after American Express alerted customers who hold its cards that are co-branded with Delta, JetBlue, Hilton and Starwood Hotels that rewards in 2010 won't be transferred to loyalty accounts with those partners if the customers are late paying their bill. Customers can pay $29 to reinstate the rewards.

Hilton Hotels last month raised the number of loyalty points required in 2010 for a free night at its best hotels to 50,000 points, vs. today's 40,000.

Since they were introduced by American Airlines in the early 1980s, frequent-flier programs have attracted more than 180 million members. Partnerships with credit card companies and retailers have made accumulating miles easier than ever.

But tighter rules on blackout dates, expiration policies and fewer seats available for free trips and upgrades have made getting rewards harder, says Tim Winship, editor-at-large of Smartertravel.com.

Randy Petersen of InsideFlyer predicts Schumer's effort "will not go anywhere." The problem rests with members not paying attention and managing the miles in their programs, he says.

Schumer Faults Adidas for Overseas Production

Tue, 24 Nov 2009 00:00:00 -0800

Adidas is planning to move most production of N.B.A. players’ official jerseys and shorts out of the United States, managers of the main factory producing the gear said on Tuesday.

With the decision threatening 100 jobs at the factory, American Classic Outfitters in Perry, N.Y., 50 miles east of Buffalo, Senator Charles Schumer, a New York Democrat, urged Adidas not to move the jersey operation.

“It is flat wrong for Adidas to move the production of jerseys worn by N.B.A. players outside the United States when there are U.S. companies that have done this work so well and for so long,” Schumer said. “And to do it in this economic climate adds insult to injury.”

Schumer said he might ask the N.B.A.’s commissioner, David Stern, to intervene.

Donna Wampole, a production supervisor at the factory, said it had already cut workers’ hours by 20 percent because of Adidas’s decision. The nonunion plant made the jerseys worn by Michael Jordan and other members of the 1992 Olympic Dream Team.

“I think it’s a horrible thing,” Wampole said. “I think American teams should be wearing American garments made in the United States.”

Adidas said in a statement that it had decided to begin moving production of N.B.A. uniforms closer to the source for materials. Robert Knoll, senior vice president for American Classic Outfitters, said Adidas informed him that a new fabric for jerseys had been developed in Asia and told the company two months ago that it planned to move production to Thailand — not just the plant’s production for 17 N.B.A. teams, but also its production for uniforms for the W.N.B.A. and for the N.B.A.’s Development League.

The plant makes more than half of official N.B.A. jerseys; Adidas has contracts with two other American companies to make such jerseys.

Knoll said his company and Adidas signed a six-year agreement in 2008, but “there were so many holes in this contract that if the wind blows in a different direction, they could get out.”

He said all of the Perry plant’s production was for Adidas. The plant also makes uniforms for college and high school teams.

“We’re going to do everything we can to keep this facility going at the level it was going,” Knoll said. “We’ll be pursuing new business.”

Adidas said it produced uniforms at more than 30 plants in North America and would continue to do so.

The N.B.A. did not reply to telephone messages.

Senator: FAA needs resources to prevent glitches

Thu, 19 Nov 2009 00:00:00 -0800

ATLANTA — New York Sen. Charles E. Schumer says the Federal Aviation Administration needs more resources to prevent problems like the computer glitch that's causing cancellations and flight delays nationwide.

The Democrat says in a statement that the previous FAA's neglect and poor management has left the current FAA and the public with an aviation system "in shambles."

He says without more resources, glitches that cause delays and chaos across the country will happen more regularly.

The FAA says the glitch has been fixed but it's unclear how much longer flights might be affected.

Schumer proposes tax break for deer donors

Wed, 18 Nov 2009 00:00:00 -0800

ALBANY, N.Y. - ALBANY, N.Y. (AP) — Sen. Charles Schumer on Wednesday proposed a tax deduction for deer hunters who donate their processed venison to food pantries and soup kitchens.

Hunters would be able to deduct the cost of having their kill butchered for donation. Schumer said the processing cost is typically $65 to $80.

Tax incentives would also be provided to processors that butcher game for non-profit organizations such as the Venison Donation Coalition, which pays to process donated game and then gives the meat to food pantries.

Schumer said Wednesday the processors wouldn't have to pay taxes on the income received from a non-profit group, and could pass the savings on to the organization.

The measure should help traditional venison donation programs, which have seen their funding levels slashed in recent years, Schumer said. The Venison Donation Coalition received $100,000 in state funding two years ago but only $21,000 this year, he said. Private donations also have declined.

According to the state Department of Environmental Conservation, more than 220,000 deer were taken by hunters in New York state in 2008.

Schumer takes aim at domestic violence

Sat, 07 Nov 2009 00:00:00 -0800

Thousands of incidents of domestic violence were reported across the state last year, according to Sen. Charles Schumer, including more than 900 in Genesee, Orleans and Wyoming counties.

"Its something we can't tolerate," Schumer said in announcing his support Thursday for legislation that calls for a minimum five-year prison sentence for people convicted of aggravated sexual abuse and his request for an additional $35 million in federal funding for a program that provides resources to local law enforcement and court personnel to arrest and prosecute perpetrators of violent crimes against women.

"We must send an unequivocal message that violence against women -- and all domestic violence -- has no place in our society," Schumer said in a press release and conference call with upstate newspapers.

According to Schumer's figures, based on state-provided data, 60,000 incidences of domestic violence were reported across upstate New York and Long Island last year and 25,000 of those were cases of women being abused by their spouses or partners. For Western New York, the totals are 10,586 and 3,982, respectively.

Figures for the tri-county area:

Genesee -- 331 reports of domestic violence, 132 against female partners.

Orleans -- 306 reports, 117 against female partners.

Wyoming -- 274 reports, 133 against female partners.

Other incidents of domestic violence were reported against men, children, parents and other family members in what Schumer said is an increasingly critical problem in New York and across the country.

Cindy Earl, director of the YWCA's domestic violence program, just started on the job this year, but said the Genesee figure didn't surprise her.

"It doesn't surprise me at all," Earl said this morning.

Difficult economic times can contribute to the problem, she said. That's not the cause, she said, but "it can be related to it."

Studies show that one in four women will be raped, assaulted by a partner, or become the victim of sexual or domestic violence at some point in their lifetime, Schumer said, According to the American Journal of Preventive Medicine, 30.5 percent of men younger than 55 and 26.5 percent of older men said they had been victims of domestic violence at some point in their lives, he advised.

"If you look at the New York numbers, it is clear that we need to address this problem now more than ever," he said, "and to make sure that our law enforcement agencies have the resources they need, and that victims get the help they deserve."

Without responsive law enforcement and prosecution, crimes such as domestic violence, dating violence, sexual assault and stalking may be overlooked or poorly addressed, according to Schumer. Better-trained law enforcement officers and greater access to resources can help victims escape from dangerous situations and recover from abuse, the Brooklyn Democrat said.

To address those issues, Schumer said he will request adding $35 million for the successful, but almost always underfunded Services, Training, Officers, Prosecutors (STOP) Grant Program. The program, created by the Violence Against Women Act, provides funding for local governments to create specialized domestic violence units in police departments and prosecutors offices, and to beef up anti-domestic violence enforcement, he said.

The senator also said he supports legislation for a five-year minimum sentence -- there is none now, he said -- for those convicted of aggravated sexual abuse, and additional legislation likely to be included as part of health care reform that would prevent insurance companies from discriminating against women who have been victims of domestic violence.

Schumer said that is not allowed in New York State, but is a "disturbing practice," based on the assumption that such women will need more doctors and hospital visits than the average person.

"If you've ever heard of blaming the victim, this is the case," he said.

Schumer Seeks to Block Stimulus Funding for Chinese-Backed Texas Wind Farm

Thu, 05 Nov 2009 00:00:00 -0800

Senator Charles E. Schumer, the New York Democrat, is calling on the Obama administration to block the use of stimulus funds for a utility-scale wind farm in West Texas that would make use of turbines manufactured largely in China.

As Green Inc. reported last week, the $1.5 billion wind venture — announced by a coalition of American and Chinese companies — was planning to seek $450 million from funds set aside in the economic stimulus package for clean-energy development.

The rest of the financing would come from Chinese commercial banks, and the turbines themselves would be manufactured by A-Power Energy Generation Systems of Shenyang, China.

Citing an analysis by the Investigative Reporting Workshop at American University, which found that 84 percent of “green” stimulus funding has thus far gone to foreign companies building renewable energy projects in the United States, Mr. Schumer vowed in a telephone interview to introduce legislation if such funding isn’t reconsidered.

The stimulus money “is supposed to create jobs in America,” Mr. Schumer said. “We’re not saying every nut an every screw has to be made in America, but the majority of these manufacturing jobs should be located here.”

Mr. Schumer said he had sent a letter on Thursday to Energy Secretary Steven Chu, urging him to “reject any request for stimulus money unless the high-value components, including the wind turbines, are manufactured in the United States.”

Organizers of the project have estimated that more than 2,000 manufacturing jobs would be created in China as a result of the project, while a little over 300 would be created in Texas.

The purpose of the stimulus program, Mr. Schumer wrote in his letter, “was to jump start the economy to create and save jobs — American jobs.”

Walt Hornaday, the president of Austin-based Cielio Wind Power, the largest independently owned wind power developer in the United States and a partner in the Texas wind deal, said in a statement that the project would be unable to move forward without stimulus funding, and that it was vital to “engineers, contractors and suppliers who will see millions of dollars of work at a time when energy based jobs are difficult to find.”

“International partnerships are essential to the development of low cost renewable energy in America,” Mr. Hornaday added.

China’s reputation for blocking foreign access to its own burgeoning clean-energy sector has been fueling anger over the planned project in Texas.

China has vexed multinational corporations and American officials by imposing not just a 70 percent “local content” requirement for wind projects on its own turf, but by steering virtually all wind contracts issued by the national government to Chinese-owned companies, even when foreign companies meet the 70 percent requirement by opening factories in China.

It set even higher local-content requirements earlier this year for solar-power projects.

World Trade Organization rules allow governments to set high local-content thresholds for what are deemed demonstration projects, and China has labeled its solar projects in particular as such; with as few as 10 megawatts, they are tiny compared with the 600-megawatt and 1,200-megawatt coal-fired plants being built across the country.

The Chinese government has further shielded itself from challenge by never signing the trade organization’s agreement extending free-trade rules to government procurement. But this means that the United States government also does not have to follow W.T.O. rules in deciding whether to include Chinese companies in its own government spending programs, according to Alan Wolff, the chairman of international trade practice at Dewey & LeBoeuf, a Washington law firm.

“If this is government procurement, we don’t owe the Chinese anything” under the W.T.O. rules, said Mr. Wolff.

China did ease its local content requirements for wind turbines in a bilateral commitment to the United States government last week, when Chinese and American trade officials met in Hangzhou, China, as part of the U.S.-China Joint Commission on Commerce and Trade.

And China’s top economic planning agency, the National Development and Reform Commission, has moved to remove local-content regulations in the renewable energy sector and has concluded several deals to import equipment.

But Western renewable energy companies have remained skeptical that they will see much change given the way Chinese officials have mentioned in speeches for months the importance of raising the market share of Chinese-owned companies. And Western executives complain that the same Chinese officials continue to show preference for domestic companies when awarding contracts.

In response to complaints sent to us by readers, Cappy McGarr, a managing partner with the U.S. Renewable Energy Group, a private-equity company and a partner in the Texas wind deal, suggested in an e-mail message that the extended benefits to Texans — and to the wider American economy — were being overlooked.

“Many of the parts for the turbines will be made by General Electric, an American company,” Mr. McGarr said. “The people of Texas will directly benefit through major increases in tax revenue to support schools, fire departments and local governments. This wind farm will also generate millions of dollars in royalties for Texas landowners over the next 25 to 30 years.”

Schumer: Hike jail time for domestic violence offenders

Thu, 05 Nov 2009 00:00:00 -0800

Canandaigua, N.Y. —

Sen. Charles Schumer plans today to ask Congress for more money to fund domestic violence units and to seek longer ail time for violent offenders.

The New York Democrat planned a mid-day press conference to release statistics his office has compiled on incidents of domestic violence in counties across the state. Schumer also planned to announce his support for legislation that increases the minimum sentence for those convicted of aggravated sexual abuse and that prevents insurance companies from discriminating against women who have been victims of domestic violence based on the assumption that they will need more doctors and hospital visits than the average person.

In addition, the senator will also on Congress to add an additional $35 million in funding to the Services, Training, Officers, Prosecutors (STOP) grant program created by the Violence Against Women Act. This funding goes to local governments to create domestic violence units in police departments and to beef up anti domestic violence enforcement.

Schumer Moves to Clean Up Credit Reporting Ads

Wed, 04 Nov 2009 00:00:00 -0800

We've all seen the TV commercial featuring the guys in silly costumes singing about free credit reports. U.S. Senator Charles E. Schumer calls such ads a "long-running scam" and says he wants the Federal Trade Commission to put a stop to it.

The New York Democrat says such companies dupe millions of consumers into buying credit monitoring services by offering a so-called "free credit report" and then tacking on a costly monthly subscriptions charge that can cost hundreds of dollars a year. His plan would require any company that purports to offer a free credit report to disclose that consumers do not have to pay for their services in order to get a free credit report and disclose in their advertising that consumers are entitled to a free credit report from the government once a year.

In addition, Schumer says his plan would require these companies, when someone requests their free report, to show that report on the computer screen before the customer provides their credit card information, that way the consumer has the choice of subscribing for year round credit monitoring. Nine million people spend a total of $650 million to $700 million annually on the services, according to Carter Malloy, a Stephens Inc. analyst.

"If these companies want to say -- or sing for that matter -- that they are giving people free credit reports, then they can't charge people $15 a month, simple as that," Schumer said. "For years, these companies have said with a smile that they will provide a free credit report -- even though the government already requires a credit report be provided for free every year - and then suddenly, months later consumers get a bill in the mail for their credit monitoring services. My plan would finally bust up this scam and give consumers some honest choices."

The commercials in question can be very catchy, and they may serve as a reminder to consumers to be vigilant about monitoring their credit. However, these ads, among many others that promote similar services, Schumer says "take advantage of Americans' very real worries about identity theft in a misleading and deceptive way, by tricking them into paying for reports they are entitled to get for free."

ConsumerAffairs.com has received scores of complaints about the practices of these kinds of companies. Among them:

• James M. of Maple Grove, Minn., tells us "I requested on freecreditreport.com my annual free credit report. Before I could receive my free credit report, I was required to enter my credit card number. This month I noticed a charge of $14.95 on my credit card for my 'free' credit report. Upon inquiry, I was told that I am automatically entered into a subscription service and that I have only 7 days to cancel. This is a SCAM and a FRAUD. I did not request nor do I want this service. This a bogus scam layered over into what is supposed to be a free report."

• Kim M. of League City, Texas writes ConsumerAffairs.com, "I pulled my credit report through freecreditreport.com. A couple of months later a $15.88 charge showed up on my card account from them. I called them and they said that when I pulled my credit I was enrolled in a credit-monitoring program that was free for the first couple of months and because I didn't cancel it they started charging me. I didn't even know I was enrolled. This is a scam!"

In 2003, Congress passed the Fair and Accurate Credit Transactions Act, which required that all Americans be allowed to access one free credit report annually from each of the three credit reporting bureaus, including the company that produces the FreeCreditReport.com commercials. In 2009, Congress added a requirement that the FTC issue new rules to prevent deceptive advertising. The FTC is currently considering proposals pursuant to that requirement.

Schumer is calling on the FTC to implement two important changes as part of its rulemaking. First, he asked the FTC to impose new regulations requiring that television advertisements include the exact same disclosure that is already present on websites and print mailings to inform consumers that they are entitled to a free credit report annually from the government, and that any offer that comes with strings attached is entirely unrelated to the website www.annualcreditreport.com. Consumers who still wish to enroll in credit monitoring services may do so, but they won't be fooled into thinking that they need to pay a subscription service for access to their credit reports.

He also asked the FTC to require those companies that continue to advertise free credit reports to provide consumers with their credit reports before they turn over their credit card information to sign up for the service. This way, consumers can actually get the free credit report that is advertised without being locked in to paying a monthly fee.

Schumer says if the FTC can't impose these rules through regulation, he will propose additional legislation.

Senator Schumer's Fix for Freecreditreport.com

Tue, 03 Nov 2009 00:00:00 -0800

In my article today about Freecreditreport.com and its credit monitoring service, I told of how the Federal Trade Commission had been trying for years to get the company to improve its disclosures. The commission (and, it turns out, many New York Times readers who commented on the article) believe that the company doesn’t make it clear enough that before you get your free credit report from the site, you first have to sign up for the monitoring service at $14.95 a month.

Yes, you can cancel the monitoring service during a brief trial period and keep the free report and credit score that Experian, the company that owns Freecreditreport.com, gives out. But many people forget to do it — or don’t even realize that the site has enrolled them in a monthly service.

So Senator Charles E. Schumer, Democrat of New York, issued a news release early this afternoon with an elegant solution to the problem, one that I hadn’t thought of.

He asked the commission to force Freecreditreport.com and other companies like it to give away the report before asking for customers’ credit card numbers. That way, it’s crystal clear to consumers that when the site asks for their card numbers it intends to charge them for monitoring, not to confirm their identification or for some other reason.

“If these companies want to say — or sing for that matter — that they are giving people free credit reports, then they can’t charge people $15 a month, simple as that,” Mr. Schumer said in the release. “For years, these companies have said with a smile that they will provide a free credit report -– even though the government already requires a credit report be provided for free every year -– and then suddenly, months later, consumers get a bill in the mail for their credit-monitoring services. My plan would finally bust up this scam and give consumers some honest choices.”

The commission, at the direction of Congress, recently proposed new rules for sites like Freecreditreport.com that would require them to create a separate page on their Web sites reminding people that the official source for free credit reports is AnnualCreditReport.com. The public can comment on the proposals until Nov. 30.

Mr. Schumer’s proposal is a comment of sorts. But it’s also a threat. He said that he intended to introduce legislation that would require companies to give the reports away, before asking for credit card information, if the commission could not impose his idea through regulation.

Schumer Aims To Protect Bloggers

Fri, 30 Oct 2009 00:00:00 -0700

Bloggers are reporters, too, and Chuck Schumer has a deal with the White House that could give them — and all reporters — greater freedom to protect sources without fear of being clapped in jail.

It comes in the form of a compromise that he and Sen. Arlen Specter worked up to create a federal shield law that passes muster with the White House, and that allows reporters to guarantee confidentiality to sources, except in certain national security and criminal matters.

If the law had been around a few years back, former New York Times reporter Judy Miller would not have had to go to jail. The White House had been concerned the measure might interfere with feds’ ability to protect the country.

“We’ve come a long way in these negotiations and have now reached a compromise that strikes the right balance between national security concerns and the public’s right to know,” Schumer said. “This new version preserves a strong protection for reporters interested in protecting their sources, while also making sure that the government can still do the job of protecting its citizens.”

“The negotiated compromise creates a fair standard to protect the public interest, journalists, the news media, bloggers, prosecutors and litigants,” said Specter.

The bill passed once before in committee, then died. With White House support, Schumer suspects it will succeed, extending a protection for bloggers and traditional reporters that the press has in nearly all state courts.

Under the bill, the feds would be able to compel information in the cases where a crime is suspected, but a key point is that the “crime” cannot be the leaking of information itself.

Shield Law Compromise Would Protect Reporters and Bloggers

Fri, 30 Oct 2009 00:00:00 -0700

The Obama administration and key Democrats have reached a tentative agreement on a proposed law to provide greater protections to reporters against being fined or imprisoned if they refuse to identify confidential sources.

Under the proposed agreement, a so-called media shield law would allow federal judges to quash subpoenas against reporters if they determine that the public interest in the news outweighed the government’s need to uncover the leaker – including, in some circumstances, disclosures of classified national security information.

The proposal would also extend coverage to unpaid bloggers engaged in gathering and disseminating news information.

It’s too early to say if a package like this can pass Congress. Prospects for a shield law had dimmed significantly in September, when the administration – after intelligence agencies and prosecutors expressed concerns – had taken a harder line against protections for reporters in national-security-related leak cases.

A leading proponent of the legislation, Senator Charles E. Schumer, Democrat of New York, expressed confidence that the tentative agreement would move quickly through the Senate Judiciary Committee, where it had stalled, and the full Senate.

“We’ve come a long way in these negotiations and have now reached a compromise that strikes the right balance between national security concerns and the public’s right to know,” Mr. Schumer said in a statement. “This new version preserves a strong protection for reporters interested in protecting their sources, while also making sure that the government can still do the job of protecting its citizens.”

The shield law would also apply when the F.B.I. wants to subpoena third-party records, tracking phone calls and e-mail to find out who had been talking to a reporter.

The compromise, which was worked out in the past two weeks, could still falter if press interests object to certain concessions made to prosecutors. A phone call with about 100 media decision-makers was scheduled to discuss the proposal at 3 p.m. on Friday.

“This is a huge deal, but it’s not a done deal, and quite honestly, until all of the media coalition members sign off on it, it’s not a deal,” said Lucy Dalglish, executive director of the Reporters Committee for the Freedom of the Press.

About three dozen states have some form of a reporter-shield law. Proponents of creating a federal version argue that it is in the public interest to allow reporters to protect confidential sources in order to bring important information to light.

Opponents note that the unauthorized disclosure of classified or criminal information is illegal and argue that members of the news media should not be allowed to decide whether exposing national security secrets is justified or receive special privileges.

Under the tentative deal, reporters would receive different levels of protection from subpoenas, depending on the type of case involved.

In civil cases, the litigant seeking to subpoena a reporter would first have to exhaust all other means of obtaining the information. Even after that, the judge would still apply a balancing test, and the onus would be on the seeker of the information to prove why the need for testimony outweighed the public’s interest in news gathering.

Ordinary criminal cases – like federal prosecutors’ effort to find out who leaked grand jury information about steroid use by baseball players and other professional athletes to The San Francisco Chronicle – would work in roughly the same way. But the burden would be on the reporter to show why there is clear and convincing evidence that prosecutors should not get the testimony they are seeking.

Under the agreement, there would be some exceptions to the balancing test allowing such judicial review of subpoenas to reporters, however. No such test would apply if prosecutors could show that forcing the reporter to identify a source would help prevent or mitigate a future terrorist attack or other future acts that are “likely to cause significant and articulable harm to national security.”

Judges would be instructed to be deferential to prosecutors when they put forth specific facts indicating that such an exception should apply. However, the mere fear that a source might leak something else that is classified in the future would not, by itself, be enough to trigger that exception.

Judges could use a similar balancing test in most national-security leak cases, such as the government’s efforts to find out who leaked information to The New York Times about the Bush administration’s program of surveillance without warrants.

If such a law were enacted, it would not necessarily mean that reporters could escape being fined or jailed for failing to testify. Media advocates say that under the legal standard in the proposal, it would be a daunting challenge to convince a judge that it was in the public interest to block a subpoena. However, they say, it would give reporters a shot that they currently do not have.

Senator Arlen Specter, Democrat of Pennsylvania, hailed the deal as a major breakthrough. He noted that President Obama had co-sponsored similar legislation when he was still in the Senate, and praised the White House for moderating its position to allow greater judicial review of what executive branch officials want to do.

“One of the big problems present today in so many aspects of our national security is that the executive branch has unilateral say and the courts cannot review it, and that is a very sharp attack on separation of powers,” said Mr. Specter, who has been pushing a version of a reporter shield bill for several years.

The shield law would not cover reporters’ unpublished interview notes with a criminal suspect or certain other kinds of working records. There would also be no protection against identifying the perpetrator of an act of terrorism, if the reporter knows who it is.

Still, Mr. Specter said, if the deal goes through and becomes law, it would not only stop most jailings and fines for reporters who refused to identify sources, but also “the intimidation, the threats that are going around the country every day.”

“We still get most of our information from investigative journalists,” he said. “If you can’t protect sources, there is a lot of public corruption and private malfeasance that will go undetected and unpublished.”