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TikTok on the Clock

How It Happened

The days of our foreign adversaries using applications to target, surveil, and manipulate the American people are numbered.

Yesterday, thanks to the bipartisan efforts of the House Energy and Commerce Committee and the Select Committee on the Chinese Communist Party, as well as many other Members of the House, H.R. 7521, the Protecting Americans from Foreign Adversary Controlled Applications Act, was signed into law.

TikTok now has a clear choice: Separate from your parent company ByteDance, which is beholden to the CCP, and remain operational in the United States, or side with the CCP and face the consequences. TikTok is on the clock.

As Chair Cathy McMorris Rodgers (R-WA) said last month, “Foreign adversaries, like the Chinese Communist Party, pose the greatest national security threat of our time. TikTok’s access to 177 million American users makes it a valuable propaganda tool for the CCP to exploit.”

She also said, “Companies controlled by a foreign adversary, like the CCP, will NEVER embrace American values like freedom of speech, human rights, the rule of law, and a free press. If given the choice, they will always choose the path for more control, more surveillance, and more manipulation.”

With this bill, the United States has sent a clear message to the Chinese Communist Party that we will no longer tolerate our adversaries weaponizing our freedoms against us. Here’s how we got here:

MARCH 23, 2023

Chair Rodgers called TikTok CEO Shou Chew to appear before the committee to testify on TikTok’s consumer privacy and data security practices, the platforms’ impact on kids, and its relationship with the Chinese Communist Party. This was Chew’s first appearance before a congressional committee.

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At our hearing, it was clear that TikTok was beholden to the Chinese Communist Party and could not be trusted to safeguard American data.

APRIL 14, 2023

Chair Rodgers, Subcommittee on Innovation, Data and Commerce Chair Gus Bilirakis (R-FL), Subcommittee on Communications and Technology Chair Bob Latta (R-OH), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA) sent a letter to the Assistant Secretary for Export Enforcement at the Department of Commerce imploring him to speak out against TikTok at the annual Global Ethics Summit.

In the letter the leaders said, “You have an ethical responsibility to tell the audience of this summit and the American people of TikTok’s threats to our national security and privacy, and to further expose how Mr. Chew failed to be completely transparent to Congress.”

MARCH 5, 2024

After nearly a year of bipartisan efforts, H.R. 7521 was formally introduced in the House with 20 cosponsors. Upon introduction of the bill, the Energy and Commerce Committee officially noticed a bipartisan Committee hearing, as well as a markup.

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MARCH 7, 2024

The Committee’s classified hearing with members of the intelligence community, including the Department of Justice, the Federal Bureau of Investigations, and the Office of the Director of National Intelligence made clear the dangers posed by applications that are controlled by foreign adversaries and need to take action.

Later that day, the Energy and Commerce Committee marked up and unanimously passed H.R. 7521 to stop foreign adversaries, like the Chinese Communist Party, from targeting, surveilling, and manipulating Americans.

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MARCH 13, 2024:

The House of Representatives then passed H.R. 7521, the Protecting Americans from Foreign Adversary Controlled Applications Act, with an overwhelmingly bipartisan vote of 352-65.

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April 23, 2024

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This past weekend, the House of Representatives passed the 21st Century Peace Through Strength Act which included H.R. 7521, the Protecting Americans from Foreign Adversary Controlled Applications Act.

Tuesday evening, just three days after the House of Representatives, the Senate passed the legislation as well, “delivering a historic rebuke of the video-sharing platform’s Chinese ownership after years of failed attempts to tackle the app’s alleged national security risks.”

The bill was signed into law by President Biden on April 24, 2024, starting the clock on TikTok’s requirement to divest from CCP-controlled ByteDance.


More News & Announcements


Chair Rodgers, Ranking Member Cruz Lead Colleagues in Urging FCC to Halt Unlawful Plan to Reclassify Broadband as a Public Utility

Letter argues agency lacks legal authority to reinstate burdensome rules that will hurt consumers Washington, D.C. – U.S. House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Senate Commerce Committee Ranking Member Ted Cruz (R-TX) led a bicameral coalition of their committee colleagues in calling on the Federal Communications Commission (FCC) to reverse course and abandon its so-called “net neutrality” draft order—an illegal power grab that would expose the broadband industry to an oppressive regulatory regime under Title II of the Communications Act. The FCC is set to vote on the draft order on Thursday. The members argue that the FCC’s draft order ignores the text of the Communications Act of 1934, which explicitly precludes the FCC from treating broadband as a public utility. Moreover, the Supreme Court’s recent jurisprudence on the major questions doctrine confirms that the only body that can authorize public utility regulation of broadband is Congress. Resurrecting this failed Obama-era policy, which will inevitably be struck down by the courts, is a waste of time and re sources and will punish American consumers by choking off investment, innovation, and competition. In a letter to Chairwoman Jessica Rosenworcel, the members write: “Congress’s decision to treat broadband Internet access as an information service, rather than a telecommunications service, was a deliberate policy choice. Congress recognized that ‘[t]he Internet and other interactive computer services have flourished, to the benefit of all Americans, with a minimum of government regulation,’ and accordingly decreed that it ‘is the policy of the United States... to promote the continued development of the internet and other interactive computer services... [and] to preserve the vibrant and competitive free market that presently exists for the Internet and other interactive computer services, unfettered by Federal or State regulation.’   “Your proposal to reclassify broadband as a telecommunications service does the exact opposite. It would give the Commission largely unfettered power to impose (and allow states to impose) rate regulation, tariffing requirements, unbundling obligations, entry and exit regulation, and taxation of broadband—the antithesis of leaving broadband ‘unfettered’ by regulation as the law requires. Congress has had many opportunities to give the FCC such power, yet it has never done so in any of its ample legislative enactments regarding broadband over the past two decades. Rather, legislators have repeatedly considered but ultimately rejected efforts to replace the longstanding light-touch framework with common carrier regulation. And for good reason: Title II will inflict significant damage on consumers by chilling investment and innovation.   “Finally, recent jurisprudence from the Supreme Court confirms that the Commission has no power to impose Title II on the broadband industry. As the Commission’s record demonstrates, the question of whether broadband should be subject to public utility regulation is an issue of ‘vast economic and political significance,’ such that the Commission must identify ‘clear authorization from Congress’ to justify such a decision. Our review of the relevant statutory provisions leaves no doubt that, far from possessing the type of ‘clear’ statutory authority required under Supreme Court precedent, the Commission lacks any authority to subject broadband services to common-carrier regulation.” The full list of Senators joining Chair Rodgers and Ranking Member Cruz in sending the letter include: Sens. John Thune (R-S.D.), Roger Wicker (R-Miss.), Deb Fischer (Re-Neb.), Jerry Moran (R-Kan.), Dan Sullivan (R-Alaska), Marsha Blackburn (R-Tenn.), Todd Young (R-Ind.), Ted Budd (R-N.C.), Eric Schmitt (R-Mo.), Shelley Moore Capito (R-W.Va.), and Cynthia Lummis (R-Wyo.). Also signing the letter were Reps. Bob Latta (OH-5), Michael Burgess (TX-26), Brett Guthrie (KY-2), Morgan Griffith (VA-9), Gus Bilirakis (FL-12), Larry Bucshon (IN-8), Richard Hudson (NC-9), Tim Walberg (MI-5), Buddy Carter (GA-1), Jeff Duncan (SC-3), Gary Palmer (AL-6), Neal Dunn (FL-2), John Curtis (UT-3), Debbie Lesko (AZ-8), Greg Pence (IN-6), Dan Crenshaw (TX-2), John Joyce (PA-13), Kelly Armstrong (ND-At-large), Randy Weber (TX-14), Rick Allen (GA-12), Troy Balderson (OH-12), Russ Fulcher (ID-1), August Pfluger (TX-11), Diana Harshbarger (TN-1), Mariannette Miller-Meeks (IA-1), Kat Cammack (FL-3), Jay Obernolte (CA-23), and John James (MI-10). The full text of the letter is available HERE .



Apr 23, 2024
Hearings

The American Privacy Rights Act Puts People in Control of Their Data

Americans Support a National Data Privacy Standard The American Privacy Rights Act puts people in control of their own data, gives Americans enforceable data privacy rights, and eliminates the patchwork of state laws. Americans overwhelmingly support stronger data privacy protections, which would protect people, especially children, from Big Tech and other companies who are exploiting our personal information to target and manipulate us. On Wednesday, April 17, the House Energy and Commerce Committee held a legislative hearing to discuss the bipartisan, bicameral data privacy legislation along with other proposals to protect kids online. As Chair Cathy McMorris Rodgers (R-WA) said , “ Right now, the average American spends nearly seven hours online a day, with two and a half hours of that time being spent on social media platforms. “The consequences range from increased suicide rates and depression, to increased polarization and loss of trust in our institutions. All the while, these companies are collecting nearly every data point imaginable which they use to then control what we see and when we see it.” [...] “Many companies are using their control over our data to erode people’s agency, their rights, and their identity. It’s time for that status quo to change.”   [...] “Congress has been trying to develop and pass comprehensive data privacy and security legislation for decades. With the American Privacy Rights Act, we are at a unique moment in history where we finally have the opportunity to imagine the internet as a force for prosperity and good.”   Every witness at our hearing agreed: This is Congress’s best chance to establish comprehensive data privacy protections. Watch:   Kara Frederick, Director of the Tech Policy Center at the Heritage Foundation , said, “I firmly believe the issue before us, data privacy, is the lynchpin upon which every piece of tech policy legislation will hinge.” [...] “Nowadays, when you give your kid a smartphone, you are not giving your kid access to the world, you are giving the world access to your kid.”   A key focus of the hearing was how the algorithms developed by these companies are designed to hold our attention, a feature that has been particularly harmful to kids. We have all heard countless stories of children being targeted with content that can lead to dangerous, life-threatening behaviors, which is why parents across the country overwhelmingly support stronger online protections for their children. Last week, members heard from Ava Smithing , who experienced first-hand the way that a large-scale collection of data can tailor algorithms to exploit kids’ vulnerabilities.  Watch Ava talk about the need for data minimization in order to protect kids online: Rep. Jeff Duncan (R-SC) asked the witnesses “Who is the greatest threats to Americans’ data security?” They answered that the top threats are individuals who are using data to scam and steal from Americans, foreign adversaries, like the Chinese Communist Party, and Big Tech companies.  Rep. Tim Walberg (R-MI) asked Kara Frederick about creating specific privacy protections for children. She replied that “children's consciences are not properly formed before these companies are going at them.”  Rep. John James (R-MI) and Witness Katherine Kuehn of the National Technology Security Coalition also talked about how important the American Privacy Rights Act is for seniors.



Apr 23, 2024
Press Release

Chairs Rodgers and Guthrie Announce Subcommittee Hearing on Legislation to Increase Medicaid Access and Improve Program Integrity

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Subcommittee on Health Chair Brett Guthrie (R-KY) today announced a legislative hearing titled "Legislative Proposals to Increase Medicaid Access and Improve Program Integrity." “Medicaid is indispensable to millions of Americans, particularly those with disabilities who rely on long-term services and supports. It’s critical that we work to bolster access to those services while also improving the integrity of the program to ensure that states can continue to offer care for years to come,” said Chairs Rodgers and Guthrie. “We thank the Members who have led on these proposals—many of which are bipartisan—and look forward to hearing from Deputy Administrator Tsai on how we can strengthen Medicaid for those it was designed to assist.” Subcommittee on Health hearing titled "Legislative Proposals to Increase Medicaid Access and Improve Program Integrity.”  WHAT : A hearing to discuss legislative proposals that will strengthen the Medicaid program for individuals most in need.    DATE : Tuesday, April 30, 2024      TIME : 10:00 AM ET  LOCATION : 2123 Rayburn House Office Building      WITNESS :   Daniel Tsai, Deputy Administrator and Director of the Center for Medicaid and CHIP Services, Centers for Medicare & Medicaid Services (CMS)   LEGISLATIVE PROPOSALS TO BE DISCUSSED :  H.R. 124 , Byron Nash Renal Medullary Carcinoma Awareness of 2023 (Rep. Green)  H.R. 468 , Building America’s Health Care Workforce Act (Reps. Guthrie and Dean)  H.R. 670 , Think Differently Database Act (Reps. Molinaro and Sherrill)  H.R. 3227 , Ensuring Seniors’ Access to Quality Care Act (Reps. Estes and Connolly)  H.R. 7513 , Protecting America’s Seniors Access to Care Act (Reps. Fischbach and Pence)  H.R. 7573 , Stop Unfair Medicaid Recoveries Act (Rep. Schakowsky)  H.R. 8084 , To amend title XIX of the Social Security Act to require States to verify certain eligibility criteria for individuals enrolled for medical assistance quarterly, and for other purposes (Reps. Bilirakis and Craig)  H.R. 8089 , To amend title XIX of the Social Security Act to require certain additional provider screening under the Medicaid program (Reps. Garcia and Peters)  H.R. 8094 , To amend title XIX of the Social Security Act to modify certain asset recovery rules (Rep. Kean)  H.R. 8106 , To amend title XIX of the Social Security Act to remove the requirement that an individual need an institutional level of care in order to qualify for home and community-based services under a Medicaid waiver (Reps. McMorris Rodgers and Pallone)  H.R. 8107 , To amend title XIX of the Social Security Act to remove certain age restrictions on Medicaid eligibility for working adults with disabilities (Reps. Ciscomani and Gluesenkamp Perez)  H.R. 8108 , To amend title XIX of the Social Security Act to require medical assistance under the Medicaid program for certain home and community-based services for military families (Reps. Kiggans and Kaptur)  H.R. 8109 , To amend the Deficit Reduction Act of 2005 to make permanent the Money Follows the Person rebalancing demonstration (Reps. Dingell and Balderson)  H.R. 8110 , To amend title XIX of the Social Security Act to make permanent the State option to extend protection against spousal impoverishment for recipients of home and community-based services under Medicaid (Reps. Dingell and James)   H.R. 8111 , To amend title XIX of the Social Security Act to ensure the reliability of address information provided under the Medicaid program (Reps. Miller-Meeks and Cartwright)  H.R. 8112 , To amend title XIX of the Social Security Act to require certain additional provider screening under the Medicaid program (Rep. D’Esposito)  H.R. 8113 , To amend title XIX of the Social Security Act to require reporting on certain directed payments under the Medicaid program (Rep. Griffith)    H.R. 8114 , To prohibit the Secretary of Health and Human Services from finalizing a rule proposed by the Centers for Medicare and Medicaid Services to place certain limitations on Medicaid payments for home and community-based services (Rep. Cammack)  H.R. 8115 , To amend title XIX of the Social Security Act to allow for the deferral or disallowance of portions of payments for certain managed care violations under Medicaid (Rep. Sarbanes)  This notice is at the direction of the Chair. The hearing will be open to the public and press and will be live streamed online at https://energycommerce.house.gov/ . If you have any questions concerning the hearing, please contact Emma Schultheis with the Committee staff at Emma.Schultheis@mail.house.gov . If you have any press-related questions, please contact Christopher Krepich at Christopher.Krepich@mail.house.gov


Trending Subcommittees

Innovation, Data, and Commerce


15 Updates

Interstate and foreign commerce, including all trade matters within the jurisdiction of the full committee; consumer protection, including privacy matters generally; data security; motor vehicle safety; regulation of commercial practices (the Federal Trade Commission), including sports-related matters; consumer product safety (the Consumer Product Safety Commission); product liability; and regulation of travel, tourism, and time. The Subcommittee’s jurisdiction can be directly traced to Congress’ constitutional authority “to regulate Commerce with foreign nations, and among the several States, and with the Indian Tribes.”


Communications & Technology


8 Updates

Electronic communications, both Interstate and foreign, including voice, video, audio and data, whether transmitted by wire or wirelessly, and whether transmitted by telecommunications, commercial or private mobile service, broadcast, cable, satellite, microwave, or other mode; technology generally; emergency and public safety communications; cybersecurity, privacy, and data security; the Federal Communications Commission, the National Telecommunications and Information Administration, the Office of Emergency Communications in the Department of Homeland Security; and all aspects of the above-referenced jurisdiction related to the Department of Homeland Security.


Energy, Climate, & Grid Security


12 Updates

National Energy Policy, energy infrastructure and security, energy related Agencies and Commissions, all laws, programs, and government activities affecting energy matters. National Energy Policy focuses on fossil energy; renewable energy; nuclear energy; energy conservation, utility issues, including but not limited to interstate energy compacts; energy generation, marketing, reliability, transmission, siting, exploration, production, efficiency, cybersecurity, and ratemaking for all generated power. Energy infrastructure and security focuses on pipelines, the strategic petroleum reserve, nuclear facilities, and cybersecurity for our nation’s grid. Our jurisdiction also includes all aspects of the above-referenced jurisdiction related to the Department of Homeland Security. Agencies and Commissions in our jurisdiction include: The US Department of Energy, the Nuclear Regulatory Commission; and the Federal Energy Regulatory Commission.


Recent Letters


Chair Rodgers, Ranking Member Cruz Lead Colleagues in Urging FCC to Halt Unlawful Plan to Reclassify Broadband as a Public Utility

Letter argues agency lacks legal authority to reinstate burdensome rules that will hurt consumers Washington, D.C. – U.S. House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Senate Commerce Committee Ranking Member Ted Cruz (R-TX) led a bicameral coalition of their committee colleagues in calling on the Federal Communications Commission (FCC) to reverse course and abandon its so-called “net neutrality” draft order—an illegal power grab that would expose the broadband industry to an oppressive regulatory regime under Title II of the Communications Act. The FCC is set to vote on the draft order on Thursday. The members argue that the FCC’s draft order ignores the text of the Communications Act of 1934, which explicitly precludes the FCC from treating broadband as a public utility. Moreover, the Supreme Court’s recent jurisprudence on the major questions doctrine confirms that the only body that can authorize public utility regulation of broadband is Congress. Resurrecting this failed Obama-era policy, which will inevitably be struck down by the courts, is a waste of time and re sources and will punish American consumers by choking off investment, innovation, and competition. In a letter to Chairwoman Jessica Rosenworcel, the members write: “Congress’s decision to treat broadband Internet access as an information service, rather than a telecommunications service, was a deliberate policy choice. Congress recognized that ‘[t]he Internet and other interactive computer services have flourished, to the benefit of all Americans, with a minimum of government regulation,’ and accordingly decreed that it ‘is the policy of the United States... to promote the continued development of the internet and other interactive computer services... [and] to preserve the vibrant and competitive free market that presently exists for the Internet and other interactive computer services, unfettered by Federal or State regulation.’   “Your proposal to reclassify broadband as a telecommunications service does the exact opposite. It would give the Commission largely unfettered power to impose (and allow states to impose) rate regulation, tariffing requirements, unbundling obligations, entry and exit regulation, and taxation of broadband—the antithesis of leaving broadband ‘unfettered’ by regulation as the law requires. Congress has had many opportunities to give the FCC such power, yet it has never done so in any of its ample legislative enactments regarding broadband over the past two decades. Rather, legislators have repeatedly considered but ultimately rejected efforts to replace the longstanding light-touch framework with common carrier regulation. And for good reason: Title II will inflict significant damage on consumers by chilling investment and innovation.   “Finally, recent jurisprudence from the Supreme Court confirms that the Commission has no power to impose Title II on the broadband industry. As the Commission’s record demonstrates, the question of whether broadband should be subject to public utility regulation is an issue of ‘vast economic and political significance,’ such that the Commission must identify ‘clear authorization from Congress’ to justify such a decision. Our review of the relevant statutory provisions leaves no doubt that, far from possessing the type of ‘clear’ statutory authority required under Supreme Court precedent, the Commission lacks any authority to subject broadband services to common-carrier regulation.” The full list of Senators joining Chair Rodgers and Ranking Member Cruz in sending the letter include: Sens. John Thune (R-S.D.), Roger Wicker (R-Miss.), Deb Fischer (Re-Neb.), Jerry Moran (R-Kan.), Dan Sullivan (R-Alaska), Marsha Blackburn (R-Tenn.), Todd Young (R-Ind.), Ted Budd (R-N.C.), Eric Schmitt (R-Mo.), Shelley Moore Capito (R-W.Va.), and Cynthia Lummis (R-Wyo.). Also signing the letter were Reps. Bob Latta (OH-5), Michael Burgess (TX-26), Brett Guthrie (KY-2), Morgan Griffith (VA-9), Gus Bilirakis (FL-12), Larry Bucshon (IN-8), Richard Hudson (NC-9), Tim Walberg (MI-5), Buddy Carter (GA-1), Jeff Duncan (SC-3), Gary Palmer (AL-6), Neal Dunn (FL-2), John Curtis (UT-3), Debbie Lesko (AZ-8), Greg Pence (IN-6), Dan Crenshaw (TX-2), John Joyce (PA-13), Kelly Armstrong (ND-At-large), Randy Weber (TX-14), Rick Allen (GA-12), Troy Balderson (OH-12), Russ Fulcher (ID-1), August Pfluger (TX-11), Diana Harshbarger (TN-1), Mariannette Miller-Meeks (IA-1), Kat Cammack (FL-3), Jay Obernolte (CA-23), and John James (MI-10). The full text of the letter is available HERE .



Apr 17, 2024
Press Release

E&C Republicans Expand Investigation into Sexual Harassment at NIH to now Include Review of HHS Office of Civil Rights Compliance Role

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Health Chair Brett Guthrie (R-KY), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA), on behalf of the Health and Oversight Subcommittee Republicans, wrote to Department of Health and Human Services (HHS) Secretary Xavier Becerra.  The letter outlines concerns with the role HHS Office of Civil Rights (OCR) plays—or fails to play—in investigating instances of sexual harassment that occurs at research institutions which receive grants from the National Institutes of Health (NIH).  KEY EXCERPTS :  “There have been several public reports of sexual harassment occurring on NIH-funded research or NIH-supported activities over the last decade, and it raises concerns about what, if any, actions the NIH has taken to resolve these issues. The NIH’s own statistics show a significant problem with more than 300 cases related to sexual or gender harassment since 2018—with about a third of those allegations being substantiated. This also represents hundreds of men and women who may be forced to operate in a hostile or unsafe research environment.”  [...]  “According to the HHS website, OCR does investigate and resolve complaints of sexual harassment in the education and health programs of recipients of grants or other federal financial assistance from HHS—including the NIH. Moreover, HHS OCR is required to conduct periodic compliance reviews of institutional Title IX programs to ensure compliance with the law—including examining the way in which complaints are handled by the institution.”  The Chairs have requested answers to questions about HHS OCR’s role by April 30, 2024.  BACKGROUND :  Based on a recommendation from the U.S. Government Accountability Office (GAO), HHS OCR and the NIH adopted a memorandum of understanding (MOU) to facilitate communication between the two components of HHS as it relates to sexual harassment.   This MOU was intended to clarify procedures on how the enforcement arm of HHS and the grant-making arm share valuable information with one another in an effort to respond appropriately to complaints of sexual harassment and prevent federal grant money from going to those with a history of sexual misconduct.   TIMELINE OF INVESTIGATION :  August 10, 2021 : E&C Republican Leaders Question NIH’s Handling of Sexual Harassment Complaints  August 11, 2022 : E&C Republican Leaders follow up with NIH on Insufficient Response to its Letter on the NIH’s handling of Sexual Harassment  November 30, 2022 : E&C Republicans to NIH: Turn Over Previously Requested Information Ahead of New Congress  March 14, 2023 : E&C Republicans Press NIH for Information on Handling of Sexual Harassment Complaints  October 6, 2023 : E&C Republicans Signal Intent to Issue Subpoenas to Obtain Information on NIH’s Handling of Sexual Harassment if Questions Go Unanswered  January 26, 2024 : Chair Rogers notifies NIH of Imminent Subpoena  February 5, 2024 : Chair Rodgers Subpoenas NIH for Documents Related to Investigation into Sexual Harassment at NIH and NIH Grantee Institutions February 20, 2024: HHS Responds on behalf of NIH to offer a rolling in camera document review to the Committee. Documents produced in the review have been highly redacted, including the redaction of the names of individuals convicted of criminal offenses, public news articles about individuals who have been found guilty of harassment, and redaction of the names of the institutions where the abuse occurred—effectively preventing the Committee from understanding if NIH continues to fund work performed by substantiated abusers at other institutions—a practice known as “pass the harasser.”



Apr 15, 2024
Press Release

Bipartisan E&C Committee Leaders Seek Answers from UnitedHealth Group on Change Healthcare Cyberattack

Washington D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Ranking Member Frank Pallone, Jr., (D-NJ), Subcommittee on Health Chair Brett Guthrie (R-KY) and Ranking Member Anna G. Eshoo (D-CA), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA) and Ranking Member Kathy Castor (D-FL) wrote to UnitedHealth Group, Inc., CEO Andrew Witty today seeking information about the cyberattack on Change Healthcare. Change Healthcare, which was acquired by UnitedHealth Group’s Optum subsidiary in 2022, is one of the nation’s largest providers of health care payment management systems. On February 21, UnitedHealth Group reported it had experienced a cyberattack on its platforms, and it had taken all Change Healthcare systems offline to contain the incident. As a result of the outage, critical services affecting patient care—including billing services, claims transmittals, and eligibility verifications—became inoperable. Though UnitedHealth first notified users that it expected the disruption to “last at least through the day,” several of the company’s products have now been inoperable for more than a month. “Change Healthcare is a central player in the country’s health care system, which has been upended by the recent breach,” t he bipartisan Committee leaders wrote to Mr. Witty. “We are interested in your efforts to secure Change Healthcare’s systems since it was acquired by your company and the efforts you are taking to restore system functionality and support patients and providers affected by the attack.” Change Healthcare’s platforms touch an estimated one in three U.S. patient records. Its systems process roughly 15 billion transactions annually, and are linked to approximately 900,000 physicians, 118,000 dentists, 33,000 pharmacies, and 5,500 hospitals nationwide. The breadth of Change Healthcare’s infrastructure all but ensures that the scope of the current disruption, and any disruption in Change Healthcare services, will be extensive. “The health care system is rapidly consolidating at virtually every level, creating fewer redundancies and more vulnerability to the entire system if an entity with significant market share at any level of the system is compromised,” the Committee leaders wrote. “In order to understand better the steps UnitedHealth has taken to address this situation, we request information about the impact of the cyberattack, the actions the company is taking to secure its systems, and the outreach to the health care community in the aftermath.” As a result of the system outage, providers reportedly struggled to make payroll while some patients have been forced to pay out of pocket for crucial medications including cancer therapy drugs and insulin because pharmacies are unable to verify coverage. The Committee leaders requested answers to a series of detailed questions by April 29, 2024. CLICK HERE to read the full letter.