US Senator John Thune’s weekly column – Back to the Basics: Working and Listening

Back to the Basics: Working and Listening
By Senator John Thune

John_Thune,_official_portrait,_111th_CongressOne of the things I enjoy about traveling when I am back in the state is picking up on some of the key messages South Dakotans have for me to take back to Washington. One of the messages ringing loud and clear is the desire of South Dakotans and the American people to return to the principles of our Founding Fathers – liberty, self-determination, and limited government through the consent of the people. These are principles that I hold dearly. America cannot turn its back on the framework that has made this country great. Our Founding Fathers worked tirelessly to form a government system that would serve the people, not itself.

On November 4, 2014, the American people voted for a change in the Senate. They were tired of the do-nothing attitude of the upper chamber under Democrat leadership and were ready for us to get the Senate working again for the American people. That is precisely what Republicans pledged to do, and in a little more than 100 days, we’ve made significant progress. The Senate has conducted more than 100 amendment roll call votes in just the first three and a half months. That’s roughly seven times as many amendment roll call votes as were conducted all of last year.

The Senate has passed more than a dozen bipartisan bills, including the Clay Hunt SAV Act to ensure we prioritize the mental health needs of our veterans. We’ve passed legislation reauthorizing Terrorism Risk Insurance, a bill to approve the Keystone XL pipeline, a bill to strengthen Medicare for seniors and their doctors, and a critical bill that combats human trafficking. The Senate also passed a responsible budget that balances in 10 years, something the president’s budget never does.

Significant progress is being made in the Senate, but there is still much more work to be done. Committees are preparing bipartisan legislation for the full Senate to consider. For example, I am optimistic that the full Senate will soon consider a bipartisan bill to reduce federal control of K-12 education, giving more power back to state and local governments.

I look forward to more bipartisan accomplishments, and I will continue striving to ensure we prioritize the South Dakota values of hard work, determination, and common sense in my work in Washington.

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US Senator Mike Rounds’ weekly column: Trade Opportunities Benefit South Dakota Famers, Producers, Manufacturers

Trade Opportunities Benefit South Dakota Famers, Producers, Manufacturers
By Senator Mike Rounds
April 26, 2015

MikeRounds official SenateFree and fair trade plays an important role in American commerce. From higher wages for U.S. workers to supporting small businesses and agriculture, trade has a proven record of keeping our economy healthy and vibrant. In South Dakota alone, trade supports 124,000 jobs. In 2013, we exported $3.7 billion worth of products. Trade levels the playing field in the global marketplace so we have the best opportunity to promote American-made goods throughout the world. We should continually be looking for ways to increase trade opportunities.

The U.S. is currently negotiating a trade agreement known as the Trans-Pacific Partnership (TPP) with 12 other nations along the Pacific Rim. Finding an agreement with these nations, which includes important trading partners such as Australia, Canada and Japan, could boost our GDP by $77 billion annually and create 500,000 new jobs. Another agreement with European nations, the Transatlantic Trade and Investment Partnership (TTIP), would create as many as 750,000 new jobs. That is in addition to the 40 million jobs trade already supports in the United States.

One tool that recently passed out of the Senate Finance Committee would help us negotiate international trade agreements. Trade Promotion Authority, commonly referred to as TPA, is a tool that has been used since the days of FDR help the U.S. negotiate stronger, more enforceable international standards on trade agreements.

The TPA bill making its way through the Senate creates a stronger, more enforceable framework for Congress to exercise oversight over the Administration, giving us a stronger voice in the negotiations process. It also establishes new trade-negotiating objectives that reflect today’s economic challenges, including measures to combat currency manipulation and eliminate barriers to innovation and digital trade.

TPA strengthens our hand by giving the Senate an opportunity to guide the negotiations before a final deal is reached, rather than afterward. If the President has negotiated a good deal for our country, he then has the opportunity to take it to the Senate for an up-or-down vote. Members are not permitted to amend trade agreements, which gives other countries more confidence and certainty in the deal and the process.

Companion legislation recently passed the House Ways and Means Committee, and President Obama continues to signal his support. I expect the full Senate to consider TPA legislation in the coming weeks. This is a real step forward on policy that has had long-standing bipartisan support in Congress and from the administration, but had been held up under previous Senate leadership.

Free and fair trade agreements across the world open up new markets to South Dakota products. Our farmers and ranchers would particularly benefit from agreements such as TPP and TTIP. But in order to negotiate the best deal for our country, we must allow the administration to pursue trade agreements through parameters set by the Congress, and within the Trade Promotion Authority, to enable our current and future presidents to negotiate the best deal possible. That is exactly what the Senate TPA bill would do. This method has a proven record of boosting economic activity and bringing higher-paying American jobs. I look forward to debating TPA legislation when it comes to the full Senate in the coming weeks.

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Congresswoman Kristi Noem’s Weekly Column: Do More with Less

Do More with Less
By Rep. Kristi Noem
April 24, 2015

kristi noem headshot May 21 2014This March, IRS Commissioner John Koskinen admitted that the IRS planned to ignore more than 60 percent of taxpayers’ phone calls during tax season.  The statistic in and of itself is infuriating, but the decisions that led to this “abysmal” level of customer service, as Commissioner Koskinen called it, are inexcusable.

On April 22, the House Ways and Means Committee, of which I am a member, released a report showing the IRS deliberately diverted funding away from customer service – a decision that left millions of taxpayer questions unanswered.

More specifically, the IRS collects nearly $500 million in user fees each year.  The agency has the flexibility to use this money as it sees fit.  In FY2014, the IRS spent 44 percent of the user-fee account – or about $183 million – on customer service. These numbers are similar to previous years.  But in FY2015, the agency expects to spend just 10 percent of the account on customer service – or $49 million.  That’s a 73 percent reduction in one year.

Hardworking taxpayers deserve an answer from the IRS as to why the agency diverted so much funding away from serving taxpayers.  I took it up with Commissioner Koskinen at a recent hearing and he responded by alleging the IRS’s poor customer service was Congress’s fault, as we had cut the IRS’s budget.

It amazes me that in the past the IRS has found millions of dollars to spend on extravagant conferences, training videos, and a Star Trek parody video while also dedicating countless resources to targeting organizations based on their ideology, but when it comes to customer service, the agency can’t find the funds.  Yes, Congress scaled back the IRS budget, but those cuts have been reflective of the IRS’s waste and abuse of your taxpayer dollars.

Ultimately, I’d like to see a tax code that is much simpler – a tax code that wouldn’t require tens of millions of Americans to dial up the IRS for help filing their taxes on time.  But until we can simplify the tax code, the IRS needs to reassess its priorities.

Across the country, families are doing more with less.  Yet the IRS Commissioner brazenly said the IRS has “no choice but to do less with less.”  I see it differently.

Just weeks after his appointment, Commissioner Koskinen reinstated a generous bonus program within the IRS that costs taxpayers $60 million a year.  Additionally, IRS employees spend 500,000 hours – worth around $20.7 million in staff time – on union activities each year and the agency used $2.1 million to hire an outside law firm even though it has a legal division staffed with tax lawyers.  Had the IRS not wasted this money and continued investing user-fee dollars into customer service, the agency could have answered 25.9 million more calls from American taxpayers.   But its leadership chose differently.

The IRS needs to get its priorities straight.  Taxpayers must come first

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Thune Praises Finance Committee’s Bipartisan Passage of Trade Promotion Authority

Thune Praises Finance Committee’s Bipartisan Passage of Trade Promotion Authority

-Thune provisions included in Finance-passed customs reauthorization bill-

John_Thune,_official_portrait,_111th_CongressWASHINGTON, D.C.—U.S. Sen. John Thune (R-S.D.), member of the Senate Finance Committee, which has jurisdiction over tax and trade legislation, praised the committee’s bipartisan passage of Trade Promotion Authority (TPA). The legislation would help finalize trade deals that remove barriers facing U.S. exports, allowing American goods to compete on a level playing field. Last night, the Finance Committee passed The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (S. 995) and a customs reauthorization bill including provisions authored by Thune, among other trade bills.

“With 96 percent of the world’s consumers outside the borders of the United States, free and fair trade is essential to economic growth,” said Thune. “This important legislation will help put the United States in the strongest possible position when negotiating trade agreements by allowing Congress to set guidelines for trade negotiations and outlines the priorities the administration must follow. Since 2009, increasing exports have accounted for more than 1.6 million new jobs in the United States. In South Dakota alone, exports support more than 15,000 jobs in industries ranging from farming and ranching to machinery and electronics. The sooner Congress renews TPA, the sooner American workers and job creators can start experiencing the benefits.”

Among other provisions, the TPA legislation directs America’s trade negotiators to remove barriers to the export of America’s farm products, including those products currently subject to non-tariff barriers. Specifically, the bill will help to remove non-science based regulatory restrictions abroad to U.S. crops that use biotechnology. Trade is especially important to South Dakota’s agriculture industry. Export markets account for 30 percent of the sales of U.S. agricultural products. For South Dakota, that represents $3.8 billion worth of annual agriculture exports creating jobs, boosting farm income, and growing South Dakota’s economy.

The legislation also includes provisions updating U.S. trade policy for the modern era by addressing foreign barriers to digital trade, such as restrictions on data flows across borders. Increasingly the Internet is an important tool for small businesses looking to export their goods, and these provisions have been championed by Thune in his roles as member of the Finance Committee and as Chairman of the Senate Committee on Commerce, Science, and Transportation.

The following Thune provisions were included in the chairman’s modified mark to the customs reauthorization bill:

  1. Provision to Reduce Trade Barriers for Low-Value Items: A Thune provision was included to the bill to reduce current trade barriers and allow for more low-value items to be imported into the United States duty-free with fewer unnecessary administrative requirements. The $200 de minimis exemption for imports has not been updated in over 20 years. Thune’s provision—taken from his legislation with Sen. Ron Wyden (D-Ore.) S. 489—would raise the exemption level to $800. The chairman’s modified mark also adopted a Thune amendment to express a Sense of Congress encouraging the U.S. Trade Representative to work with our trading partners to ensure they are also raising their de minimis limits for U.S. goods.
  2. Provision to Ensure Fair Treatment of Domestic Honey Producers: The bill includes a provision, championed by Thune, to provide additional tools to U.S. Customs and Border Patrol (CBP) to better enforce existing trade laws against Chinese honey that is transshipped through third countries, thus evading applicable duties. Additionally, the chairman’s modified mark adopted a Thune amendment requiring CBP to distribute all interest payments collected under the Byrd Amendment to affected domestic producers, such as honey producers. The law, which applies to products imported before September 30, 2007, requires that certain import duties, including all interest, be distributed to the domestic industries found to have been injured by the imports under existing trade remedy laws. CBP has made a determination, contrary to the plain language of the law, that certain interest payments are not due to the impacted U.S. producers, thus greatly reducing the payments to these producers. The Thune amendment will correct this CBP misinterpretation of law.

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Thune, Donnelly Lead Bipartisan Letter Urging USDA to Maximize CRP Enrollment, Conduct General Signup

Thune, Donnelly Lead Bipartisan Letter Urging USDA to Maximize CRP Enrollment, Conduct General Signup

-Without a Fiscal Year 2015 general signup, CRP enrollment could drop to 3 million acres below its acreage cap-

John_Thune,_official_portrait,_111th_CongressWASHINGTON D.C.— Today, U.S. Sens. John Thune (R-S.D.) and Joe Donnelly (D-Ind.) led a bipartisan group of 10 senators in sending a letter to U.S. Department of Agriculture (USDA) Secretary Tom Vilsack strongly encouraging him to take whatever steps necessary, including conducting a general signup in fiscal year 2015, to keep Conservation Reserve Program (CRP) enrollment near the annual acreage caps authorized in the 2014 Farm Bill.

“CRP has evolved over the past 30 years into a versatile soil and water conservation and wildlife habitat program, that also provides a solid economic alternative for farmers in place of producing expensive crops on marginal land,” said Thune. “Because general CRP signups account for the highest percentage of enrolled acres and are the most cost-effective, we need a general CRP signup each year to keep enrollment at its maximum level.”

“The Conservation Reserve Program is critical to reducing soil erosion, improving water quality, and providing wildlife habitats,” said Donnelly. “This program helps both our agriculture businesses and conservation efforts. That is why my Senate colleagues and I are urging the USDA to make sure that eligible landowners have every opportunity to participate. I appreciate the opportunity to work with Senator Thune on this bipartisan effort.”

First authorized under the 1985 Farm Bill, CRP is administered USDA. CRP enrollment peaked at 37 million acres in 2007, but has dropped to its current enrollment of 24.29 million acres. The 2014 Farm Bill-authorized nationwide CRP acreage cap for fiscal year 2015 is 26 million acres. More than 1.9 million acres enrolled in CRP contracts expire September 30, 2015. Unless a large number of acres are enrolled in CRP during the remainder of Fiscal Year 2015, CRP enrollment may be nearly 3.6 million acres under the enrolled acreage cap at the end of this fiscal year.

More than 18 million acres or about 75 percent of the current CRP enrollment of 24.29 million acres enrolled via general signups, which indicates the important contribution general CRP signups are to overall enrollment. To emphasize cost-effectiveness of general CRP signups, the average rental rate for acres enrolled under general CRP signups is $66.34 and the average rental rate for acres enrolled in continuous CRP is $110.89.

Joining Thune and Donnelly in their letter are Sens. Tammy Baldwin (D-Wisc.), Michael Bennet (D-Colo.), Steve Daines (R-Mont.), Jim Inhofe (R-Okla.), Amy Klobuchar (D-Minn.), Ed Markey (D-Mass.), Rob Portman (R-Ohio), Mike Rounds (R-S.D.), Jon Tester (D-Mont.), and Ron Wyden (D-Ore.).

Text of the senators’ letter follows:
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April 23, 2015

The Honorable Thomas J. Vilsack
Secretary
U.S. Department of Agriculture
1400 Independence Ave, SW
Washington, DC 20250

Dear Secretary Vilsack,

We thank you and your team at the U. S. Department of Agriculture (USDA) for your efforts to implement critical provisions of the Agriculture Act of 2014 (2014 Farm Bill). As you continue to make implementation decisions pursuant to the intent of Congress, please keep in mind that decisions regarding Conservation Title programs have lasting and significant impacts on the agricultural landscape. The Conservation Reserve Program (CRP) is one of the most critical Conservation Title programs, and the undersigned members of the U.S. Senate write to clarify the intent of the language passed into law.

CRP was originally established under the Food Security Act of 1985 and over the past 30 years has evolved into one of the most important and versatile federal programs for both agricultural producers and conservationists. Annually, CRP reduces soil erosion by millions of tons, improves water quality for millions of people, and provides millions of acres of wildlife habitat. CRP also serves as an effective component of the “farm safety net” by helping producers mitigate risks associated with price and production by providing an alternative to raising crops on less productive, environmentally sensitive lands.

Nearly 37 million acres were enrolled in CRP at its peak in 2007; however, as authorized in the 2014 Farm Bill, the CRP acreage cap will be reduced to 26 million acres in fiscal year 2015, 25 million acres in fiscal year 2016, and 24 million acres in fiscal years 2017 and 2018.

Although the 2014 Farm Bill lowered the CRP acreage cap, this reduction does not signal waning congressional support for CRP. It is our intent that USDA provide adequate enrollment periods, including general CRP signups, in order to ensure eligible landowners are not denied sufficient opportunity to enroll their land and to ensure CRP does not remain undersubscribed.

The combination of larger tracts enrolled through the more cost-effective general CRP signups in close proximity to Continuous CRP (CCRP) or Conservation Reserve Enhancement Program (CREP) enrolled acres maximizes the wildlife and recreational benefits of CRP, CCRP, and CREP and provides the most cost-effective use of CRP expenditures. CRP must be allowed to continue as one of USDA’s key conservation programs in concert with working lands conservation efforts.

Though the authorized CRP acreage cap for fiscal year 2015 is 26 million acres, as of February 2015 only 24.29 million acres were enrolled. With 1.9 million acres enrolled in contracts that expire on September 30, CRP may have a total enrollment of only 22.39 million acres at the end of this fiscal year, nearly 3.6 million acres under the allowed acreage cap.

Accordingly, we strongly encourage you to take whatever steps necessary to keep CRP enrollment near the annual acreage caps authorized in the 2014 Farm Bill, including conducting a general CRP signup during fiscal year 2015 and in future years as needed. In addition, please let us know specifically how you plan to keep CRP enrollment at or near its authorized acreage caps for the duration of 2014 Farm Bill.

Thank you for your consideration of our request. We stand ready to work with you to ensure CRP enrollment does not fall below the levels Congress intended.

Sincerely,

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Thune Statement on Passage of Human Trafficking Bill

Thune Statement on Passage of Human Trafficking Bill

“It’s good to see that bipartisanship has once again prevailed in the Senate so these victims can receive much-needed resources.”

John_Thune,_official_portrait,_111th_CongressWASHINGTON, D.C.—U.S. Sen. John Thune (R-S.D.) issued the following statement on the Senate’s bipartisan passage of the Justice for Victims of Trafficking Act:

“I’m glad that Senate Democrats finally dropped their weeks-long filibuster of this bipartisan, common-sense bill that targets the scourge of human trafficking and helps give a voice to the voiceless. This effort to help end modern-day slavery should have been above politics all along, but it’s good to see that bipartisanship has once again prevailed in the Senate so these victims can receive much-needed resources.”

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Noem’s Anti-Trafficking Legislation Passes Senate

Noem’s Anti-Trafficking Legislation Passes Senate

kristi noem headshot May 21 2014Washington, D.C. – Representative Kristi Noem today applauded the U.S. Senate for passing a sweeping anti-trafficking package, which includes legislation the congresswoman authored to help ensure shelters and facilities looking to provide housing for trafficking survivors have access to critical funding, among other things.

“Trafficking victims and survivors have been exposed to the worst of humanity,” said Noem.  “We have a fundamental responsibility to protect these young people, and when such efforts fail, we must help intervene and assist victims in the healing process.  I’m hopeful my legislation and the additional provisions passed by the Senate today will help facilitate prevention, intervention and recovery efforts to protect those involved or at risk of becoming involved in this criminal industry.  I applaud the Senate for today’s step forward.”

Rep. Noem’s language was first introduced as the Human Trafficking, Prevention, Intervention and Recovery Act in 2014. It passed the U.S. House of Representatives in both 2014 and 2015, but was not taken up by the Senate until now. The Congresswoman’s legislation takes a three-pronged approach in combatting human trafficking:

  • Improves existing Department of Justice grants, ensuring the grants support shelters for survivors.  Currently, there are just 200 beds available in the United States for underage victims.
  • Launches a review by the Interagency Task-Force to Monitor and Combat Traffickingthat will look into federal and state trafficking prevention activities.  The review will be done in consultation with nongovernmental organizations and will work to identify and develop best practices to prevent trafficking.
  • Requires an inventory of existing federal anti-trafficking efforts by the non-partisan Government Accountability Office to make sure all federal agencies and programs work together and that federal resources are being targeted where needed.

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Rounds part of Tea Party Solutions Book

From a Release:

RELEASED: Tea Party Solutions Book
Includes submissions from Senators Rounds,  Marco Rubio, Rand Paul and
30 Other Members of Congress, Foreword by Steve Forbes

Washington, D.C. – Contrary to the common narrative regarding the Tea Party movement as being against everything, conservative Members of Congress are offering up dozens of new ideas to solve America’s economic woes. Tea Party Express released a new book titled, “Tea Party Solutions for America: Congressional Plans for Fiscal Responsibility and Economic Growth,” which highlights some of these ideas.

The book is being released digitally at TeaPartySolutionsForAmerica.com – a domain hosted by the new social publishing platform, Medium.com. The 33 different articles will be released over a three-week period as part of a special digital publication, however, journalist may download the book in its entirity by clicking here. Senator Rounds’s piece my be viewed digitally here. The public may also request a hard copy of the book at www.TeaPartyExpress.org.

Tea Party Express Executive Director Taylor Budowich said, The Tea Party movement has been successful in electing an unprecedented number of conservatives to the U.S. Senate and House of Representatives.  Republicans now enjoy more Members of Congress since 1928.  Our goal is not just to elect people to office, but to change the policies in Washington.  The call from the Tea Party movement has been to reduce the size, cost and intrusiveness of the federal government, rein in the national debt, and end anti-growth tax and regulatory policies that are denying too many people their share of the American Dream.

“The electoral success is not the ultimate goal.  The Tea Party Express was created as a political action committee to change the players in Washington as the means to change the policies.  Ultimately, the Tea Party’s contribution and success should be measured by the ideas to reform government that are introduced, debated and enacted into law.  The first step was Congressional control, and the final step will be winning the White House in 2016.  Now, however, is the time to bring forward the new ideas that will transform our government to be more responsive to the American people and provide for less government and more dynamic economic growth.

“Now, after finishing the sweep of Congress, this book unveils the fresh, conservative, idea-based face of the new GOP. While some have tried to define the Tea Party with labels, the truth is that it’s a movement driven by ideas. That’s why some in the media may be surprised at the broad range of contributors we’ve included in this book. Republicans from every corner of the nation, with different backgrounds and constituencies, are all championing Tea Party ideas.

“Since the Tea Party’s inception, activists have capitalized on the democratizing nature of digital platforms to organize events and share ideas. That’s why, along with the physical copy of the book that we will be making available for free, we are utilizing Medium.com, an innovative social publishing platform, to release this book digitally. TeaPartySolutionsForAmerica.com will serve as an online publication, providing the individual authors with the ability to deliver their ideas directly to their constituents.

“This book does not include every idea out there, nor does it try to suggest that there is only one viable solution to a problem. However, with so many in the media falsely characterizing the Tea Party by claiming that the movement should be defined by our opposition to a reckless growth of government, this book presents many thoughtful, Tea Party solutions to problems that face America,” Budowich concluded.

The following are contributors to the book:

Senator Steve Daines (MT) Senator John Barrasso, M.D. (WY) Congressman Tim Huelskamp (KS-1) Congressman Marsha Blackburn (TN-7) Congressman Jeff Duncan (SC-3)
Senator Rob Portman (OH) Senator Jeff Sessions (AL) Congressman Steve Scalise (LA-1) Congressman Markwayne Mullin (OK-2) Congressman Dave Brat (VA-7)
Senator Rand Paul (KY) Senator Chuck Grassley (IA) Congressman Steve King (IA-4) Congressman Louie Gohmert (TX-1) Congressman Curt Clawson (FL-19)
Senator Mike Rounds (SD) Congresswoman Lynn Jenkins (KS-2) Congressman Scott Perry (PA-4) Congressman John Fleming, M.D. (LA-4) Congressman Brad Wenstrup (OH-2)
Senator Mike Lee (UT) Congresssman Ted S. Yoho (FL-3) Congressman Rodney Davis (IL-13) Congressman Jim Sensenbrenner (WI-5) Congressman Bob Goodlatte (VA-6)
Senator Mike Enzi (WY) Congressman Tom Price, M.D. (GA-6) Congressman Pete Olson (TX-22) Congressman Jim Jordan (OH-4) Congressman Jeff Duncan (SC-3)
Senator Marco Rubio (FL) Congressman Tom Graves (GA-14) Congressman Michael C. Burgess, M.D. (TX-26) Congressman Jim Bridenstine (OK-1) Congressman Dave Brat (VA-7)

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Rounds Campaign pays down nearly 2/3 of 2014 campaign debt in q1 2015; starting Peter Norbeck Leadership PAC

I’d mentioned the Noem and the Thune campaigns earlier – and now I have the scoop on what the Rounds campaign has been doing in terms of fundraising while they’re setting up shop.

At the end of 2014, the Rounds for Senate campaign had $136,276 in debt left over from the massive campaign effort they had undergone to capture the seat for Republicans.  Since that time, now Senator Rounds has been devoting almost all of his time to getting his office set up and organized, which has been complicated by the fact he still doesn’t have his permanent office yet in Washington.

Regardless, they haven’t been ignoring the campaign side of things, and according to sources in the Rounds camp, the campaign will be reporting figures in the neighborhood of $16k cash on hand, and $50k remaining in debt, after paying off roughly $80,000 of the $136k.

I’m told they’re chipping away at the remaining debt, and will ramp up over the next year.

In additional fundraising news, I’m told Rounds also is launching a leadership PAC this month; The Peter Norbeck Leadership PAC. This mirrors the name of a PAC that Rounds had utilized after he had left office to support State legislative campaigns, with some of the seed money coming from funds left over from his campaign account while Governor.

In case you’re wondering, Leadership PAC’s are quite common among those serving in Washington, with both Thune (Heartland Values PAC) and Noem (Keeping Republican Ideas Strong Timely PAC) both having them, as well as Tom Daschle (DASHPAC), Tim Johnson (South Dakota First PAC), and Stephanie Herseth (Rural America Policy Cmte) all having used them while they were serving in office.

US Senator John Thune’s Weekly Column: Reforming Medicare Payments Helps Ensure Access to Better Care

Reforming Medicare Payments Helps Ensure Access to Better Care
By Senator John Thune

John_Thune,_official_portrait,_111th_CongressThousands of South Dakotans, including my own father back in my hometown of Murdo, depend on Medicare to help with the cost of their health care. Since 1997, beneficiaries’ access to quality care has been threatened due to Medicare’s use of a flawed physician reimbursement formula known as the Sustainable Growth Rate (SGR). The formula was implemented to help curb the increasing costs associated with the Medicare program. Unfortunately, rather than helping to rein in costs, the caps associated with the SGR would have made large payment cuts to Medicare physicians, providing a disincentive for doctors to accept Medicare patients. Since then, Congress has been kicking the can down the road, patching this defective payment system 17 times.

Congress recognized how important it is to provide certainty to Medicare beneficiaries and physicians, which is why on April 14, the Senate approved the bipartisan Medicare Access and Children’s Health Insurance Program Reauthorization Act. This legislation repeals the flawed SGR formula and modernizes Medicare payments to incentivize high-quality, low-cost care for seniors.

I am pleased that Medicare payment modernization included a provision I championed that gives rural providers sufficient technical assistance to ensure they are able to effectively transition into new payment models. Additionally, I am pleased that the bill included provisions that I helped spearhead that would improve access to durable medical equipment, prosthetics, orthotics, and supplies through Medicare. These are just a few of the many reforms included in the bill that are vital to ensuring that South Dakota seniors continue receiving high quality, affordable health care.

Not only do our seniors deserve access to quality and efficient health care, but our physicians should be paid for the quality of care they provide, not the volume of services they provide. I will continue working to strengthen Medicare to ensure beneficiaries receive the best care possible, while improving access to care in rural communities. There is more work to be done to protect and preserve this important program, but the passage of the Medicare Access and Children’s Health Insurance Program Reauthorization Act was an important first step to ensure we make needed reforms that will continue putting South Dakota seniors first.

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