Kelly's corner

News from Senator Ayotte's Office


Dear Friends,

With the Senate in session this weekend, I write from Washington to share a quick update on the latest from Capitol Hill.

As you know, debate continues here regarding the nation's debt ceiling. With Tuesday's deadline just days away, members of the Senate and House are working to find a solution that can pass both houses of Congress and be sent to the president.

I thought it was unfortunate that Senate Democrats blocked consideration of the only two serious proposals - which had been passed by the House - to avoid default. We need to enact significant spending cuts and budget reforms to end business as usual in Washington, and prevent default and a downgrading of America's credit rating. I still firmly believe that this difficult moment provides an opportunity to place ourselves on a path to a balanced budget to preserve our country. We can no longer afford to kick the can down the road if we want to protect our economic future.

Last night, I appreciated the chance to discuss the debt ceiling debate on Sean Hannity's show. Click here to watch.

While America's fiscal crisis has been the main focus of attention in Washington this week, read on for additional news from my office.




Senator Ayotte: Pentagon Spending Must Be Scrutinized to Find Savings That Won't Undercut Readiness

During an Armed Services Readiness Subcommittee hearing this week, Senator Ayotte underscored the need to find savings within the Department of Defense (DoD) budget by identifying wasteful and duplicative spending at the Pentagon. The Senator, who serves as the panel's Ranking Member, noted that DoD is one of the few agencies in the entire federal government that cannot pass an independent audit of its finances; she expressed concern that DoD needs more reliable data and financial management processes necessary to fully evaluate areas of potential savings.

In her opening remarks during the hearing, Senator Ayotte emphasized the importance of obtaining reliable financial data to ensure that proposed spending reductions do not undercut warfighters or endanger military readiness.

"With our nation facing a serious fiscal crisis, we must closely scrutinize spending at every federal agency, including the Pentagon. DoD must be auditable to ensure that we're responsible stewards of taxpayer money," said Senator Ayotte. "However, as we reduce defense spending, it's critical to ensure that reductions don't undercut America's warfighters or compromise our military readiness. To distinguish between necessary defense budget cuts and reductions that would harm our troops and threaten readiness, we need reliable financial data and effective business processes and systems."


Senators Ayotte, Brown Renew Call for Stronger Contracting Oversight in Wake of Alarming Reports

Senator Ayotte and Senator Scott Brown (R-MA) on Monday renewed their call for strengthening oversight of U.S. funds for reconstruction projects in Afghanistan, following two recent reports that found U.S. taxpayer money had been indirectly funneled to corrupt powerbrokers and insurgents, including the Taliban.

Senators Brown and Ayotte introduced the "No Contracting With the Enemy Act" in February, aiming to make it easier for U.S. contracting officials to void contracts with contractors who funnel taxpayer resources to enemies of the United States, such as the Taliban. At a meeting of the Senate Armed Services Committee in March, General David Petraeus highlighted the urgency of legislation that would achieve the goals of the Brown-Ayotte bill, testifying that it was needed "the sooner the better."

"These reports highlight troubling shortcomings that must be addressed," said Senators Brown and Ayotte in a joint statement. "Our military in Afghanistan has taken steps to develop better oversight of contracting, but more must be done. With better oversight and with the authorities provided by our provisions, DOD contracting officials will be able to more effectively ensure our money does not end up in the hands of those attacking our troops. The Senate should move quickly to address this issue and pass our provisions that are critical to the mission in Afghanistan."

According to a report in Monday's Washington Post, a year-long investigation conducted by the U.S. military uncovered definitive evidence that taxpayer money intended to fund a $2.16 billion transportation contract in Afghanistan ended up in the hands of the Taliban through fraud, kickbacks, and money laundering. Another report released last week by the Special Inspector General for Afghanistan Reconstruction (SIGAR) found that, "While U.S. agencies have taken steps to strengthen their oversight over U.S. funds flowing through the Afghan economy, they still have limited visibility over the circulation of these funds, leaving them vulnerable to fraud or diversion to insurgents." Echoing General Petraeus' September 2010 Counterinsurgency Contracting Guidance issued to U.S. and alliance military forces fighting in Afghanistan, the SIGAR report called on all U.S. agencies, including the U.S. Agency for International Development, operating in Afghanistan to improve visibility of subcontractors, integrate intelligence, plans and operations, and ensure that contracted funds are not used to empower insurgents.


Senator Ayotte, Colleagues Urge FCC to Conduct Cost-Benefit Analysis of Proposed Net Neutrality Rule

Senator Ayotte, a member of the Senate Commerce Committee, this week urged the Chairman of the Federal Communications Commission (FCC) to conduct a cost-benefit analysis of the agency's proposed Internet regulatory rule before it goes into effect. In a letter to Chairman Julius Genachowski, Senator Ayotte, along with Republican colleagues on the Commerce Committee, requested that the agency conduct a thorough cost-benefit analysis of its proposed net neutrality rule, pursuant to a recent Executive Order issued by President Obama.

Executive Order 13563, which the President issued on July 11, directs independent and executive agencies to conduct a comprehensive cost-benefit analysis of proposed regulations prior to their adoption, with the intent of reducing onerous regulatory burdens on the business community and the public. Although the FCC approved the rules in December, the Senators are requesting a retrospective review, as the net neutrality rule is not federal law yet.

"All federal agencies, including the FCC, must weigh the economic impact of proposed regulations on America's businesses," said Senator Ayotte. "I have serious concerns that the pending net neutrality rule stands to discourage private sector investment and prevent cutting-edge products from reaching the marketplace. Government shouldn't get in the way of entrepreneurial innovation, and that's why I urge Chairman Genachowski to conduct a retrospective review of the rule."