Sen. Warren focuses on economic issues, research funding bill

Speaking to hundreds of local officials from across Massachusetts this morning, U.S. Sen. Elizabeth Warren discussed issues that are central to the Massachusetts economy, such as infrastructure investment, scientific research and higher education.
 
At the MMA Annual Meeting in Boston, Sen. Warren previewed a legislative proposal that would boost funding for the National Institutes of Health. She said Massachusetts ranks second only to California in obtaining NIH funding for research, which fosters the state’s important life sciences sector. But funding for the NIH has failed to keep pace with inflation over the past 10 years, and less than 20 percent of research grant proposals currently receive any funding.
 
NIH research funding, she said, “really matters to how we build a future” in Massachusetts. She said every dollar distributed by the NIH results in more than $2 flowing into the local economy. And federal investment in the NIH is cost-effective, since the research results can mitigate health issues that contribute to the soaring cost of health care.
 
Sen. Warren said she is lining up co-sponsors for a bill that would provide a new revenue stream for the NIH derived from large pharmaceutical companies that “skirt the law.” Her legislation, which she said she expects to file next week, would assess a penalty of 1 percent on profits derived from these “blockbuster drugs” when the manufacturer is found guilty of offenses such as Medicare fraud or providing “kickbacks” to physicians for prescribing their drugs – infractions for which companies typically pay “modest” fines today.
 
Warren pointed out that many of the hundred-plus blockbuster drugs – those that generate at least $1 billion a year in revenue – available in the United States were initially developed with help from the NIH.
 
In a 25-minute address, Warren provided a federal perspective on seven topics, some of which she has become well-known for since she took office two years ago, such as her efforts to reduce student loan interest rates, protect homeowners and businesses from spikes in flood insurance premiums, and protect the tax-exempt status of municipal bonds.
 
She said there is frequently talk in Congress of removing or reducing the municipal bond exemption, which would greatly increase the cost of local road, water and sewer projects. But, she promised, “I will lie down in front of that train.”
 
The tax exemption for municipal bonds, she said, “is how we help support your ability to build the infrastructure that the federal government should be helping more with.”
 
Warren said the U.S. is “under-investing” in infrastructure and failing to keep up with its global competitors, particularly China, which spends 9 percent of its gross domestic product on roads, bridges, water, transit, communications and other infrastructure, compared to the U.S.’s 2.4 percent.
 
“Building infrastructure, strengthening infrastructure is about good jobs today and better jobs tomorrow,” she said.
 
Unfortunately, she added, Congress is unable to reach consensus on funding for infrastructure programs and is more inclined to make cuts. She said the country faces an “infrastructure deficit” of $3.4 trillion, according to the American Society of Engineers.
 
On flood insurance, Warren said federal law was changed to soften the blow of premium hikes, and the Federal Emergency Management Agency is retooling its scientific models after an outcry from the public and members of Congress. She warned, however, that there’s a strong movement in Congress to quickly eliminate federal subsidies for the flood insurance program, and climate trends indicate that flood zones will be expanding in coming years, including in inland areas.
 
Pointing out that Massachusetts has more colleges and universities than any other state and is also near the top in total student loan debt, Warren called it “obscene” that student loan interest rates are high enough to produce a profit of billions of dollars for the federal government.
 
“We’re putting an extra tax on kids to go to college,” she said.
 
The senator acknowledged that it’s difficult to get any bill through Congress these days, but she added, “How can you not fight for the things you believe in?” She vowed to keep working “in case the window opens up that we can get something done.”
 
In her second straight appearance at an MMA Annual Meeting, Warren was warmly received by local officials, shaking hands and posing for photos with many of them. She opened by telling her audience, “I have the most aggravating job, but you have the hardest job.”