As Congress debates another COVID-19 relief package, there will be more opportunities to slip in unrelated items like the Green New Deal or a “fix” to surprise medical billing. In fact, on Wednesday, the White House signaled that they want to address the pressing problem of surprise billing. According to Politico ([link removed]) , “but without mandating how doctors and hospitals would recover their costs from insurers, according to administration officials, Capitol Hill aides and industry lobbyists familiar with discussions. Billing disputes would have to be worked out on a case-by-case basis.” This appears to be moving in the right direction away from price controls, but we must remain vigilant. The Taxpayers Protection Alliance (TPA) released a video ([link removed]) this week featuring some of our friends and their thoughts on price controls. As
always, TPA will be monitoring Congress to see what they come up with.

Profile in Courage…FCC Chairman Ajit Pai

Federal Communications Commission (FCC) Chairman Ajit Pai has been a Profile in Courage during this pandemic, helping millions of Americans stay connected as the economy teetered on the brink of collapse. But his courageousness and service to the American people began when Corona was just a beer and not a deadly virus. In 2017, Chairman Pai led the charge to unshackle the internet from the chains of outdated, onerous Title II regulations. Pai stood firm against an onslaught of sustained attacks from vested special interest groups opposed to these changes and even dealt with protestors repeatedly stalking and threatening him and his family. But his steadfast commitment to ending burdensome regulations set the stage for entrepreneurs and private providers to seamlessly respond to the COVID-19 pandemic. From loosening the regulatory restrictions on the digital domain to aggressively moving toward a 5G future by selling and repurposing wireless spectrum, Chairman Pai has made it possible for
people to work from home and remain well fed and entertained. The FCC is now poised to aggressively close the digital divide while also protecting taxpayers.

Since becoming chairman of the agency in 2017, Pai has put in long hours to free the internet from onerous regulatory requirements and give low-income households the opportunity to access the digital domain. At the end of 2017, Chairman Pai’s FCC successfully repealed outdated “Title II” regulations that resulted in declining digital investments and stymied free internet (i.e. “zero rating”) options for low-income households. Since then, the FCC has tirelessly focused on paving the way for the new 5G wireless standard, streamlining rules, and lowering costs for installing pizza box-sized 5G attachments onto poles. The agency has also been instrumental in conducting spectrum auctions (i.e. for C-band) and freeing up bandwidth for 5G, even as consortiums of private companies tried to push the FCC toward an opaque “private sale” with little guaranteed revenue for taxpayers. The FCC has committed to maintaining a public, transparent C-band auction in December, ensuring that internet providers
will gain access to this critical block of bandwidth in record time.

Chairman Pai’s biggest test of leadership by far has been the Coronavirus pandemic. Digital traffic is at record highs due to entire communities working from home and streaming content to keep themselves entertained. For example, Comcast reports that internet usage is up 32 percent and has surged up to 60 percent in some parts of the country. While some companies might respond to high demand by increasing prices, cable and internet providers and regulatory agencies such as the FCC realize that raising rates would be devastating for millions of struggling households. That’s why Chairman Pai and leading telecommunications providers have banded together to #KeepAmericansConnected and figured out ways to keep costs under control.

And now, as the U.S. begins to emerge from the pandemic and slowly reopen its economy, Chairman Pai is looking to the future to free even more spectrum for 5G use. On May 14, he announced the deployment of broadband on the 900 MHz band, stating, “900 MHz users are enthusiastic about the possibilities that reliable broadband will open for them. Broadband access will enable industries to leverage technologies for applications like private LTE networks—next-generation networks that can enable Voice over LTE, grid resiliency and monitoring, wildfire mitigation, enhanced cybersecurity, and more.” TPA applauds Chairman Pai’s courage and commitment to closing the digital divide while protecting taxpayers and looking out for households and businesses nationwide during this exceptionally difficult time.

Is a State Bailout Necessary or Rewarding Bad Behavior?

Since the start of the pandemic, states have already received more than $200 billion from federal taxpayers. There is now discussion about a massive $1 trillion bailout to help states, localities, and territories cope with the fallout from the pandemic. A new study by national financial watchdog Truth in Accounting (TIA) found that many of the states that are now crowing the loudest for a federal bailout during the pandemic are among the states that have been managed most poorly pre-pandemic. TIA found that some of these poorly managed states have huge taxpayer burdens, which the organization defines as each taxpayer’s share of state bills after the state’s assets have been tapped.

TIA’s home state of Illinois finished second worst in the study with a per-taxpayer burden of $52,600. The state has requested a bailout package of $41.6 billion with no strings attached so Illinois leaders could theoretically use a healthy portion of the money to help shore up its $100 billion-plus pension shortfall that is unrelated to the pandemic. Illinois requests this bailout as its state employees will receive a collective $261 million raise in July.

House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) have advocated the loudest for another relief package that would aid state and local governments. Schumer has warned of a big loss of public-sector jobs that could further harm the economy. TIA’s report found that New York has a per-taxpayer burden of $20,500, ninth worst in the U.S., fueled largely by retirement benefits promised to workers of those public-sector jobs.

A study from the American Institute for Economic Research backs up TIA’s findings. The organization found that, the more a state was governed by Democrats in recent decades, the larger its debt burden – on average the difference was more than double. But it’s not just a blue state problem. Kentucky finished seventh in the TIA study with a per-taxpayer burden of $25,700. Senate Majority Leader Mitch McConnell (R-Ky.) has suggested states go into bankruptcy to manage their shortfalls, a comment that was widely criticized by leaders on both sides of the aisle. Part of the problem is that many states aren’t prepared for such a swift and major financial downturn. The Pew Charitable Trusts found that states have rainy day funds that represent a median figure of 7.7 percent of general fund expenditures. But, Illinois and Kansas had not saved at all, while Pennsylvania’s rainy day fund was just 0.1 percent of general expenses and Kentucky and New Jersey’s rainy day funds were just 1.1 percent.

There is no doubt states are struggling, but giving them a blank check won’t help them fix pre-existing budgetary problems.

Blogs:

Tuesday: No manners, no mask, no to your money ([link removed])

Wednesday: Coalition Releases Video Warning Against Healthcare Rate-Setting ([link removed])

Thursday: TPA Executive Director Tim Andrews Interviews Members of Congress ([link removed])

Thursday: Watchdog Criticizes Anti-Free Speech Executive Order ([link removed])

Friday: Profile in Courage: Federal Communications Commission (FCC) Chairman Ajit Pai ([link removed])

Media:

May 25, 2020: Issues and Insights ran TPA’s op-ed, “U.S. Postal Service Needs To Get A Grip On Package Pricing.”

May 25, 2020: TPA Policy Director Ross Marchand appeared on “The Frank Truatt Morning Show” (WTBQ 1110 AM and 93.5 FM; Orange County, N.Y.) to talk about delivery service regulations.

May 27, 2020: I appeared on WDUN 102.9 FM and 550 AM (Atlanta, Ga.) to talk about Coronavirus relief legislation.

May 27, 2020: The Washington Examiner ran TPA’s op-ed, “FDA is standing in the way of Bill Gates’s coronavirus testing.”

May 27, 2020: Townhall ran TPA’s op-ed, “Time to Ground the F35 Joint Strike Fighter Program.”

May 27, 2020: Ross appeared on "The Rod Arquette Show" (KNRS 105.9 FM and 570AM; Salt Lake City, Utah) to talk about business face mask requirements.

May 28, 2020: I appeared on WBOB Radio (600 AM and 101 FM; Jacksonville, Fla.) to talk about unemployment filings and the potential for a new fiscal relief package.

May 28, 2020: WBFF (Fox, Baltimore) interviewed me about weekly unemployment filings.

May 29, 2020: Ross appeared on “The Tyler Cralle Show” (AM 980 WAAV; Wilmington, N.C.) to talk about President Trump’s executive order targeting online platforms.

May 29, 2020: Governing Magazine quoted TPA Executive Director Grace Morgan in their article, “Why Trump Attacked the Internet's First Amendment.”


Have a great weekend, stay safe, and as always, thanks for your continued support.

Best,
David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])

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