State Funds Expected To Unlock a Federal Matching Grant That Will Be Used To Install Pumps and Divert Groundwater to the Connecticut River
(HARTFORD, CT) – Governor Ned Lamont, who serves as chairman of the State Bond Commission, today announced that he has scheduled the commission to vote at an upcoming meeting on the approval of an allocation of $187,500 in state funding that will be used to install pumps at Jobs Pond in Portland to address an ongoing situation in which rising groundwater has been causing flooding in nearby neighborhoods.
The pumps will be used to divert groundwater from the pond to the Connecticut River.
The governor explained that the approval of these state funds is expected to unlock $562,500 in federal matching funds from the U.S. Department of Agriculture’s Natural Resources Conservation Service to assist in the effort. At Governor Lamont’s direction, the Connecticut Division of Emergency Management and Homeland Security and the Connecticut Department of Energy and Environmental Protection have been working with the Town of Portland on finding a solution to address the groundwater levels.
“This is a very unique and complex situation because even though rainfall in the region is above normal for this time of year, water levels at the pond have continued to rise even on days when we’ve received no precipitation, and it’s still not clear exactly what is causing it and why this has been unlike any other event the pond has experienced in recent decades,” Governor Lamont said. “By releasing these state funds, we can unlock federal matching dollars that will initiate action to pump waters from Jobs Pond into the Connecticut River, which we are hopeful will mitigate the impact of this flooding. I’ve directed our state emergency management and environment teams to remain in continuous contact with Portland officials on this situation. I thank U.S. Agriculture Secretary Tom Vilsack and his staff for their willingness to collaborate with our state and the town on this effort.”
The State Bond Commission will vote on the funding at its next meeting, which will be held on Friday, June 7, 2024, at 10:30 a.m. in Room 1E of the Legislative Office Building in Hartford.
WASHINGTON—U.S. Senators Chris Murphy (D-Conn.) and Richard Blumenthal (D-Conn.) joined 22 Senate Democrats in a letter to Attorney General Merrick Garland and Assistant Attorney General for Antitrust Jonathan Kanter calling on the U.S. Department of Justice (DOJ) to use every tool at its disposal to prevent and prosecute collusion and price fixing in the oil industry. The senators called for the DOJ to launch an industry-wide investigation into possible violations of the Sherman Act to hold any bad actors accountable and to redress any harms to competition and consumers. The letter also outlined how Big Oil’s alleged collusion with the Organization of the Petroleum Exporting Countries (OPEC) is a national security concern that aids countries looking to undermine the U.S.
The letter follows a Federal Trade Commission (FTC) investigation into the Exxon-Pioneer merger – called for Congressional Democrats – that uncovered evidence of price fixing involving American oil executives and OPEC officials that have resulted in higher energy costs for American families and businesses.
“From pre-pandemic times to current day, industry collusion may have contributed to the 49% decrease in the U.S. oil production growth rate,” the senators wrote. “Pioneer’s and its co-conspirators’ collusion may have cost the average American household up to $500 per car in increased annual fuel costs – an unwelcome tax that is particularly burdensome for lower-income families. Meanwhile, Western oil majors collectively earned more than $300 billion in profits over the last two years, a surge that many market experts believe cannot be explained away by increased production costs from the pandemic or inflation.”
The senators concluded: “Corporate malfeasance must be confronted, or it will proliferate. These alleged offenses do not simply enrich corporations; hardworking Americans end up paying the price through higher costs for gas, fuel, and related consumer products. The DOJ must protect consumers, small businesses, and the public from petroleum-market collusion, and an important part of that mission means seeking full restitution and imposing all penalties supported by the facts and the law.”
The letter was also signed by U.S. Senators Chuck Schumer (D-N.Y.), Tammy Baldwin (D-Wis.), Cory Booker (D-N.J.), Sherrod Brown (D-Ohio), Maria Cantwell (D-Wash.), Bob Casey (D-Pa.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Kirsten Gillibrand (D-N.Y.), Mazie Hirono (D-Hawaii), Amy Klobuchar (D-Minn.), Ed Markey (D-Mass.), Jacky Rosen (D-Nev.), Bernie Sanders (I-Vt.), Jean Shaheen (D-N.H.), Brian Schatz (D-Hawaii), Tina Smith (D-Minn.), Elizabeth Warren (D-Mass.), and Sheldon Whitehouse (D-R.I.).
Dear Attorney General Garland and Assistant Attorney General Kanter:
We write regarding our serious concerns about alleged collusion and price fixing in the oil industry. While investigating ExxonMobil’s (Exxon) proposed $60 billion acquisition of Pioneer Natural Resources (Pioneer) – the largest oil-and-gas deal of the 21st century – the Federal Trade Commission (FTC) uncovered evidence that founder and former Pioneer CEO Scott Sheffield colluded with the Organization of Petroleum Exporting Companies (OPEC) to “reduce output of oil and gas, which would result in Americans paying higher prices at the pump, to inflate profits for his company.” These reports are alarming and lend credence to the fear that corporate avarice is keeping prices artificially high. This is also a national-security concern: this alleged collusion with OPEC may have served to enrich countries like Iran and Russia that are actively seeking to undermine the United States and our allies. The federal government must use every tool to prevent and prosecute collusion and price fixing that may have increased gasoline, diesel fuel, heating oil, and jet fuel costs in a way that has materially harmed virtually every American household and business. We therefore urge the Department of Justice (DOJ) to investigate the oil industry, to hold accountable any liable actors, and to end any illegal activities.
According to the FTC’s complaint, Mr. Sheffield worked to orchestrate “anticompetitive coordinated output reductions” between and among U.S. crude oil producers and OPEC, ultimately to “pad Pioneer’s [and OPEC’s] bottom line[s]…at the expense of U.S. households and businesses.” Mr. Sheffield, it seems, was determined to pull off this collusion even if it meant ignoring opportunities to drill more oil and sell it at lucrative high prices, which would create more chances for rivals to undercut the industry equilibrium and compete on price. For example, on April 16, 2024, Mr. Sheffield said at a conference: “Even if oil gets to $200/bl, the independent producers are going to be disciplined.” It also appeared that Mr. Sheffield was certain that he and his allies could enforce that discipline. He warned competitors that they should be “disciplined” about capacity growth and “stay[] in line,” even threatening that “[a]ll the shareholders that I’ve talked to said that if anybody goes back to growth, they will punish those companies.” In private WhatsApp communications with senior OPEC officials, Mr. Sheffield assured his company’s competitors that “Pioneer and its Permian Basin rivals were working hard to keep oil output artificially low.” These private assurances from Mr. Sheffield stretched back to beginning of the COVID pandemic as Pioneer and other American producers sought to “limit Permian oil production in the face of falling oil prices globally.
The strategy appears to have worked. From pre-pandemic times to current day, industry collusion may have contributed to the 49% decrease in the U.S. oil production growth rate, the increase of $23.41 in the average crude oil price per barrel, and the $0.94 increase in the average price of retail gasoline. That means Pioneer’s and its co-conspirators’ collusion may have cost the average American household up to $500 per car in increased annual fuel costs – an unwelcome tax that is particularly burdensome for lower-income families. Meanwhile, Western oil majors collectively earned more than $300 billion in profits over the last two years, a surge that many market experts believe cannot be explained away by increased production costs from the pandemic or inflation. By banning Mr. Sheffield from serving on Exxon’s board following its acquisition of Pioneer, the FTC has taken an important proactive step to prevent further collusive activity. However, only the DOJ can prosecute and fully redress the alleged anticompetitive behavior in the oil sector. Section 1 of the Sherman Act proscribes price fixing and stipulates a fine of up to $100,000,000 for corporations and a fine of up to $1,000,000 and 10 years in prison for individuals.
Corporate malfeasance must be confronted, or it will proliferate. These alleged offenses do not simply enrich corporations; hardworking Americans end up paying the price through higher costs for gas, fuel, and related consumer products. The DOJ must protect consumers, small businesses, and the public from petroleum-market collusion, and an important part of that mission means seeking full restitution and imposing all penalties supported by the facts and the law. If any oil corporations or executives have violated the Sherman Act, we urge you to follow the law and seek appropriate punishment. We appreciate your attention to this serious matter.
WASHINGTON—U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Health, Education, Labor, and Pensions Committee, along with U.S. Senator Richard Blumenthal (D-Conn.) and U.S. Representative Jahana Hayes (D-Conn.) joined U.S. Senator Jeff Merkley (D-Ore.), U.S. Representative Katherin Clark (D-Mass.), and 22 other members of Congress to reintroduce the Elementary and Secondary School Counseling Act, legislation that would greatly boost the availability of mental health providers in America’s public schools. Mental illness affects 20% of American youth. This bicameral legislation will put additional mental health providers in elementary and secondary schools across America.
“Kids spend most of their time in the classroom, so teachers and counselors are often the first people to notice when something is wrong. This funding will help ensure school districts have the personnel and resources they need to identify students going through a tough time or facing a mental health crisis and connect them to the care they urgently need,” said Murphy.
“There is no ignoring the mental health crisis affecting our youth. We know young people are taking their own lives at an accelerating rate, and the decrease in available mental health professionals is only exacerbating this crisis. I have been a long-time proponent for increasing access to school-based mental health providers to support children across the nation. I am proud to support the Elementary and Secondary School Counseling Act—legislation that tackles this crisis head on,” said Blumenthal.
“Supporting children in school also means providing resources to support their social and emotional needs. Schools are in desperate need of more mental health providers to ensure we are immediately addressing students in need,” said Hayes. “The Elementary and Secondary School Counseling Act will help fill vacant school-based mental health provider roles so all students can have access to resources that promote their mental wellbeing and educational success.”
The recommended maximum student-to-counselor ratio is 250 students per counselor, but currently, the national average is 385 students per counselor and continues to rise. For school psychologists, the recommended maximum ratio is 500 students per provider, and 250 to 1 for school social workers. The Elementary and Secondary School Counseling Act would establish five-year renewable grant programs to help elementary and secondary schools to hire additional school-based mental health providers such as counselors, psychologists, and social workers, ensuring students can receive the mental health care and support they need to achieve their full potential.
Students are 21 times more likely to visit school-based health centers for mental health than community mental health centers, but school districts across America too often lack the resources to provide students with the in-school treatment and care they need and deserve. Furthermore, schools that employ more school-based health providers see improved attendance rates, academic achievement and career preparation, and graduation rates, and lower rates of suspension, expulsion, and other disciplinary incidents.
U.S. Senators Michael Bennet (D-Colo.), Cory Booker (D-N.J.), Sherrod Brown (D-Ohio), Laphonza Butler (D-Calif.), Bob Casey (D-Pa.), Chris Coons (D-Del.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Martin Heinrich (D-N.M.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), Alex Padilla (D-Calif.), Jack Reed (D-R.I.), Jeanne Shaheen (D-N.H.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), and Ron Wyden (D-Ore.), along with U.S. Representatives Ted Lieu (D-Calif.), Lauren Underwood (D-Ill.), and Linda T. Sánchez (D-Calif.) co-sponsored the legislation.
The bill is also endorsed by the American Federation of Teachers, American Foundation for Suicide Prevention, American Mental Health Counselors Association, American Psychological Association, American School Counselor Association, Anxiety & Depression Association of America, Girls Inc., International Society of Psychiatric-Mental Health Nurses, National Association of Elementary School Principals, National Association of School Psychologists, National Association of Secondary School Principals, National Council for Mental Wellbeing, National Federation of Families, Postpartum Support International, School Social Work Association of America, and Western Youth Services.
State Senator Gaston discussed the alarming disregard for school bus safety, highlighting near-miss incidents where students were almost struck by cars ignoring bus stop signs. They worked with Bus Patrol to address this issue and successfully advocated for legislation. This bill, supported unanimously by the Public Safety Committee, ensures all ticket proceeds from bus-related violations stay within local communities to enhance public safety. Gaston emphasizes that protecting student safety transcends political affiliations, aiming to ensure safer environments for children across Connecticut.
(HARTFORD, CT) – Governor Ned Lamont today announced that he has signed legislation approved by the Connecticut General Assembly this session strengthening the state’s laws regarding paid sick days protections by expanding them to ensure that more workers are covered and have access to them.
Connecticut’s existing paid sick days laws require employers with more than 50 employees that are mostly in specific retail and service occupations (such as food service workers, health care workers, and others) to provide their employees with up to 40 hours of paid sick leave annually.
This legislation signed by Governor Lamont expands this coverage to include more workers in two ways:
Beginning January 1, 2025, these laws will apply to workers of nearly every occupation, not just those in retail and service jobs. (Seasonal employees and other certain temporary workers are exempt.)
The threshold for coverage will be lowered in three phases, beginning with employers that have at least 25 employees on January 1, 2025; those with at least 11 employees beginning January 1, 2026; and those with at least one employee beginning January 1, 2027.
Additionally, the legislation broadens the definition of who qualifies as a family member when a worker wants to use their paid sick days to care for a loved one to also include those other than that person’s own minor children, as limited under the current law. It also expands the reasons why an employee may use paid sick leave to include instances related to the declaration of a public health emergency.
“Our existing paid sick days laws include important protections for certain workers, however there are broad categories left unprotected, and this update will expand this coverage to help ensure that people do not have to choose between going to work sick and sacrificing a day’s wage,” Governor Lamont said. “Given what we just experienced during the recent outbreak of a viral pandemic, it’s appropriate that we take a look at our paid sick days laws and evaluate how they are working and how they can be strengthened. I applaud the General Assembly for sending this bill to my desk so that I could sign it into law, and in particular I want to recognize the advocacy of Senate President Looney, Senator Kushner, and Representative Sanchez.”
“Our state has been proud to lead the way with one of the most comprehensive paid leave programs in the country that’s creating a working environment where everyone can succeed,” Lt. Governor Susan Bysiewicz said. “But before our paid medical family leave program, in 2011, Connecticut became the first state in the nation to require certain employers to provide employees with 40 hours of paid sick time per year – but since that time, we’ve fallen behind. By updating these statutes, we are allowing more workers the opportunity to care for themselves or a family member without the fear that it’ll negatively impact their career. This is legislation that truly supports our workers, their families, and their communities.”
“The private-sector workplace is rapidly evolving, with salaries and benefits becoming more and more competitive as unemployment rates drop and our economy continues to expand,” Senate President Pro Tempore Martin Looney said (D-New Haven). “The expansion of paid sick days to more workers makes sense, both from an economic and a societal standpoint. For low and moderate-income people, the loss of even a couple of day’s pay is a real hardship; it could mean the difference between having the rent that month or not. Connecticut’s pro-employee policies are also bringing more young workers into the state, and keeping them here, for the quality of life they can experience. That’s also a boon to employers to have a broader pool of prospective employees and a happier, healthier, more productive workforce.”
“One of the true highlights of the 2024 legislative session was the expansion of paid sick days. This was my top priority,” State Senator Julie Kushner (D-Danbury), co-chair of the Labor and Public Employees Committee, said. “More than a decade ago, Connecticut was a national leader in requiring certain service sectors to provide paid sick days to their employees – but only a fraction of Connecticut’s workforce was covered. Since 2011, we’ve stood still while other cities and states have exceeded what we started. In the daily race to attract new residents and new jobs, standing still is not an option. With the signing of this bill, every worker in Connecticut is on their way to earning paid sick days. I want to thank the governor and my fellow Democrats in the General Assembly for recognizing the value of human labor in our economy, and for recognizing the needs of employees and their families to stay well in the never-ending demands of business for more productivity and more profits. There has been a new-found respect for working people since the pandemic, and offering paid sick days to everyone by 2027 is one way we can show our appreciation and grow our workforce.”
“Workers should never have to choose between their health and their jobs,” State Representative Manny Sanchez (D-New Britain), co-chair of the Labor and Public Employees Committee, said. “This legislation marks a significant advancement toward healthier workplaces, increased productivity, and better employee retention. I am grateful to Governor Lamont for signing this life changing initiative.”
(HARTFORD, CT) – Governor Ned Lamont today announced that he has signed legislation creating a state law that exempts from property taxes the primary residence or motor vehicle of former members of the United States Armed Forces who have a permanent and total disability rating resulting from their active-duty service.
The exemption applies to a home that is owned by an eligible service member and is their primary residence. If an eligible service member does not own a home, the exemption will apply to one motor vehicle owned by the service member.
To qualify, the former service member must have served in the U.S. Army, Navy, Marine Corps, Coast Guard, Air Force, or Space Force; have a service-connected permanent and total disability rating as determined by the United States Department of Veterans Affairs; reside in Connecticut; and file for the exemption with the town assessor.
“Our service members put their lives on the line to protect our nation, and this property tax exemption will provide some relief to those who have made sacrifices for our country,” Governor Lamont said. “Connecticut is the home of many veterans who have provided for our nation, and we want to ensure that they are properly cared for in their lives after leaving service. I want to thank the entire legislature for sending this bill to my desk so that I could sign it into law, and in particular I applaud Representative Anthony Nolan for his continued advocacy in support of this bill.”
The bill was approved with the unanimous support of every member of the Connecticut General Assembly present and voting.
“This is one of the greatest bills I’ve voted for, and I’m so proud to see its unanimous, bipartisan passage in the legislature and signage into law by Governor Lamont,” State Representative Anthony Nolan (D-New London), co-chair of the Committee on Veterans and Military Affairs, said. “This bill acknowledges and appreciates the sacrifices these veterans have made for their country. It provides them with financial relief and support, recognizing their services and the challenges they may face due to their disabilities. It also improves their quality of life by easing their financial burden and allowing them to focus on their health and well-being. Thank you to Governor Lamont for his steadfast support and for signing this amazing bill into law.”
“Our veterans who served our country and made sacrifices deserve our continued support, and this law will provide them with welcome, valuable financial relief,” State Senator Martha Marx (D-New London), co-chair of the Committee on Veterans and Military Affairs, said. “It’s wonderful to know that our state’s disabled veterans will have this new benefit that will provide long-term aid.”
“As an Army veteran and American Legion Post commander, this is an issue that is very close to my heart,” State Senator Cathy Osten (D-Sprague), co-chair of the Appropriations Committee, said. “I’ve been working for years to get this law passed, and I’m really happy to see the unanimous and bipartisan support it got this year. Only one-half of one percent of Americans serve in the military. We have to remember what a select group of people we are talking about who might receive this benefit. As we approach Memorial Day, and as we bestow accolades and honors on all of those who have died fighting for our country, let’s remember that military service members are injured every day. Some of them will end up being permanently and totally disabled. These service members and their sacrifice for our country need to be remembered and honored, and eliminating their local property taxes is just one good way of doing that.”
The legislation is Public Act 24-46, An Act Establishing a Property Tax Exemption for Veterans Who Have a Service-Connected Permanent and Total Disability Rating. It takes effect October 1, 2024.
“Zelle and the big banks said they couldn’t help. What they really meant is they wouldn’t help.”
[WASHINGTON, DC] – Today, U.S. Senator Richard Blumenthal, Chair of the Permanent Subcommittee on Investigations (PSI), delivered opening remarks at a hearing titled “Fraud Alert!: Shedding Light on Zelle.” The hearing—featuring testimony from two individuals who were victimized by scammers on the peer-to-peer payment (P2P) platform—examined the human toll of schemes on P2P money transfer services, the availability of and processes for consumer reimbursement of money lost to scams and fraud, and the extent of current regulatory and legal protections for consumers.
“Zelle markets itself as, ‘a fast and easy way to send and receive money.’ But as this Subcommittee has found, ‘a fast and easy way to lose money’ is often what happens on Zelle,” said Blumenthal.
Emphasizing the unique risks associated with Zelle, Blumenthal underscored the need for the platform and the banks that own it to better protect consumers, “All peer-to-peer payment apps are susceptible to fraud, no question about that fact. And I want to be clear that fraud happens on all of them, but Zelle deserves particular attention because of its direct connection to trusted financial institutions. Zelle and the banks that own it offer to customers the appearance of the trust they feel they deserve. But the risks there are real and present, and they simply are failing to protect consumers in the way that they deserve.”
Blumenthal called on Zelle and the banks that own it to do more to protect consumers, “Many types of scams exist, but what they have in common is that these stories and many other consumers entail lost money due to fraud scams. Time and again, Zelle and the big banks have said they couldn’t help. What they mean is they wouldn’t help.”
“Unfortunately, for consumers, it seems like the big banks have accepted that some of the transactions on Zelle will be fraudulent. They’ve made the decision that this is just the cost of doing business. But it’s the cost to their consumers, not them, because it’s the customer who is out of pocket. That’s why we have invited Zelle and the three largest banks to appear,” Blumenthal concluded.
Video of Blumenthal’s opening remarks can be found here. The full transcript of Blumenthal’s opening remarks can be found below.
Thank you to my Co-Chairman of the Subcommittee, the Permanent Subcommittee on Investigations—we work together on a bipartisan basis.
I am very pleased to welcome you to this hearing of the Permanent Subcommittee on Investigations, entitled “Hearing on Fraud Alert!: Shedding Light on Zelle.” And I will give an opening statement, it will be followed by Ranking Member.
The Banks of America have a dirty little secret. It’s called Zelle. And it’s not just Zelle, it’s other P2P paid platforms—apps that people use to transfer money among their bank accounts. In the case of Zelle, it is nearly instantaneous. It’s almost always irreversible. And it is owned by banks.
In fact, Zelle is the largest peer-to-peer payment app. It’s actually operated by Early Warning Services, which in turn is owned and operated by the seven largest banks. And Zelle is often integrated into consumers’ existing online bank accounts and mobile apps.
Zelle markets itself as “A fast and easy way to send and receive money.” But, as this Committee has found, “a fast and easy way to lose money” is often what happens on Zelle. And that is probably a more accurate catchphrase for Zelle and for other P2P platforms as well. What distinguishes Zelle is speed, permanence, and bank ownership, and that’s really the reason why we are focusing on Zelle, but the other platforms deserve attention as well. In fact, it’s less well known than other payment apps like Cash App and Venmo, but Zelle is by far the largest—several times its nearest competitor, and it is approximately three times larger than its nearest rival.
Zelle transfers are nearly instant and irreversible, and by the time a consumer knows they’ve been scammed, usually it’s too late to do anything about it—at least according to Zelle and according to the banks that own, control, and in effect operate Zelle.
Zelle and the banks that own it offer to customers the appearance of the trust they feel they deserve. But the risks there are real and present, and they simply are failing to protect consumers in the way that they deserve. 13% of P-to-P platform users report sending money to someone and later realizing it was a scam. And the kinds of scams are various—me-to-me, employment, romance, AI. They have various categories. But the bottom line here is literally that the banks are failing to do what they should to protect their consumers.
This Subcommittee has heard many accounts of scams and fraud on Zelle. In California, a teenager received escalating death threats and lost $10,000 on Zelle simply because he wanted to protect his family. In Florida, criminals hacked into a woman’s bank account and used her confidential information to manipulate her into transferring almost $5,000 to Zelle scammers. In Arizona, a man used Zelle to purchase automobile parts he never received. And I would like to enter into the record a collection of news articles about Zelle scams and statements that we have received from consumers about their personal experiences with Zelle.
With us today are two individuals who have personally experienced those stories, and we thank them from their bravery and for their initiative in coming forward. Ariana Duval, a college student in North Carolina, will tell us her story in receiving an exciting summer research opportunity from a professor at her university only to learn she was out $2400 that she never had. Anne Humphreys is also here today to tell us her story, how her 94-year-old mother was scammed out of $3500 after being told that her brother had been arrested and needed bail money and how she struggled to get their bank to realize its insufficient safety measures allowed this scam to play out. Again, we thank you both.
Many types of scams exist, but what they have in common is that these stories and many other consumers entail lost money due to fraud scams. Time and again, Zelle and the big banks have said they couldn’t help. What they mean is they wouldn’t help. And their attitude has been, “Not our problem.”
Well, to the banks of America, particularly the seven that own and operate Zelle, it is your problem. You own it. Just as you own Zelle. And you have the expertise, the resources, and the obligation to make sure that you do better.
We are also going to hear from experts as part of this bipartisan inquiry into Zelle and Early Warning Services, the company that operates Zelle. And we hope to hear from the banks. We’ve actually invited them to come here in June and explain how they can do better and why they have failed to do so.
We have found that customers of J.P. Morgan, Chase, Bank of America, and Wells Fargo submitted claims reflecting a combined total of $456 million lost to scams and fraud on Zelle in one year, 2022 alone. And only a fraction were repaid, $341 million. More than two thirds of these losses were never repaid by those banks.
The growth of mobile payments shows no signs of stopping. But unfortunately, neither do the scammers who are preying on American consumers on those apps. Criminals are increasingly using scams tailored to individuals with AI voice cloning and personal details pulled from hacked data, sold on the dark web, and increasing the risk. The risks are growing, and so must the safeguards.
Zelle and its owner banks are aware of the frightening new trends. No question. They have been put on notice. They track detailed information about the latest scams, but they’re failing to stop them. And failing also to make their customers whole.
There are concrete steps these institutions can take to better protect customers. For example, banks could extend protections available to credit card users to Zelle transaction. They could allow customers to cancel or reverse a payment within a certain period of time. And they could, in effect, provide for better means of authentication—more friction and more time before a transaction is completed.
Those ideas are only a few of the possibilities. Unfortunately, for consumers, it seems like the big banks have accepted that some of the transactions on Zelle will be fraudulent. They’ve made the decision that this is just the cost of doing business. But it’s the cost to their consumers, not them, because it’s the customer who is out of pocket. That’s why we have invited Zelle and the three largest banks to appear. And today, in addition to Ms. Duval and Ms. Humphreys, we will be hearing from experts who’ve studied this issue and can better suggest potential remedies and preventions. And I look forward to hearing from all of you and now turn to the Ranking Member.
(Hartford, CT) – Attorney General William Tong this week joined a coalition of 19 attorneys general calling on the U.S. Department of Education to swiftly implement recently proposed regulations, which would provide needed relief for some of the nation’s most burdened student loan borrowers and help address the student debt crisis. The proposed regulations would waive or reduce student loan repayment for certain groups of federal student loan borrowers.
“For far too many Connecticut families, student loan debt is a crushing, unaffordable burden. This is an economic crisis exacerbated by bad actors in both the for-profit college and loan servicing industries, as well as long-term mismanagement over the course of many, many years and multiple federal administrations. I join attorneys general from across the country in urging the U.S. Department of Education to target robust relief to those most impacted by these long-term failures, including especially public servants and frontline workers wrongly denied Public Service Loan Forgiveness, and students saddled with debt for education they never received through failing institutions like Stone Academy,” said Attorney General Tong.
In a comment letter sent to the Department, the coalition underscores the critical need for meaningful debt relief to address the nationwide student debt crisis, which disproportionately burdens low-income borrowers and borrowers of color. Having worked on the frontlines advocating on behalf of student borrowers, the attorneys general submitting these comments have observed firsthand how historical and ongoing systemic failures of the federal student loan system have exacerbated and perpetuated the crisis. Drawing on these experiences, the coalition emphasizes the need for borrower relief and commends the Department for proposing regulations designed to help alleviate burdens for struggling borrowers.
The coalition commends the Department for proposing the regulations, which would provide meaningful and targeted relief to specific groups of borrowers. Specifically, the Department’s proposed regulations are designed to provide critical debt relief to:
• Borrowers who have seen their student loan balances balloon through accrued and capitalized interest, and borrowers with older loans. These borrowers have been especially burdened by the misconduct of student loan servicers and the Department’s previous misguided policy choices.
• Cohorts of borrowers with commercially held loans taken out under the Federal Family Education Loan (FFEL) Program. The Department proposes a system by which certain cohorts of borrowers with commercially held FFELs may obtain debt relief. While FFELs stopped being issued in 2010, many borrowers with FFELs continue to be burdened by their debt. Specifically, many FFEL borrowers are in danger of missing the opportunity to consolidate their loans to access affordable income-driven repayment plans and loan forgiveness programs due to widespread servicer misconduct. Borrowers with FFELs must consolidate by June 30th to benefit. Debt relief is particularly critical for these borrowers and the coalition encourages the Department to further extend such relief.
• Borrowers who attended a school that failed to meet its obligations to students. Under the proposed regulations, the Department will provide debt relief to borrowers who attended schools that lost their Title IV eligibility as a result of institutional problems related to student outcomes, and schools that failed to provide sufficient value to their students according to Departmental determinations. These borrowers did not get the benefit of the education they were promised for the federal loans they took out and should not be left holding the bag for institutional failures.
• Borrowers who would have been eligible for relief under other federal student loan programs, such as income-driven repayment plans and the Public Service Loan Forgiveness Program, but have not successfully enrolled in these programs, often due to the difficulties borrowers face navigating the complex federal loan repayment system.
The groups of borrowers identified by the Department in the proposed regulations have endured some of the greatest burdens associated with student loan debt and require critical Department assistance. As such, the coalition urges the Department to effectuate this proposed relief as quickly as possible to provide the most impactful relief for borrowers.
(HARTFORD, CT) – Governor Ned Lamont today announced that his administration is launching a new state program to address the healthcare workforce shortage in Connecticut’s health professional shortage areas.
Known as the Connecticut Student Loan Repayment Program, the initiative will offer up to $50,000 in student loan repayments to eligible healthcare providers who commit to practicing full-time in underserved communities in the state for at least two years. Part-time options are also available for $12,500 per year over two years, totaling $25,000.
The program is being overseen by the Connecticut Department of Public Health and administered by the Connecticut Area Health Education Center, a program that works throughout Connecticut to improve access to basic healthcare by linking local community groups with the resources of health professionals, health professional groups, and health professional training programs.
“Our administration is committed to ensuring that every resident of Connecticut has access to quality healthcare, regardless of their zip code,” Governor Lamont said. “This program is a significant investment in our healthcare workforce and a step towards reducing health disparities across our state. We recognize that not all providers can commit to full-time work, so we’re offering flexible options to attract a wider range of talent to our underserved communities.”
This program offers a distinct advantage over federal loan repayment programs such as the Public Service Loan Forgiveness Program, which only applies to federal student loans. In contrast, the Connecticut Student Loan Repayment Program allows both federal and private student loan debt to be repaid, making it a more comprehensive solution for healthcare providers with diverse educational debt.
Eligible providers include:
MDs and DOs in Family Practice, General Practice, Internal Medicine, Pediatrics, OB/GYN
APRNs, including Certified Nurse Midwives, Nurse Practitioners, and Psychiatric Nurse Specialists
Physician Assistants
Registered Nurses
Dentists and Dental Hygienists
Psychiatrists, Psychologists, and Core Behavioral Health Providers, including Licensed Clinical Social Workers, Licensed Marriage and Family Therapists, Licensed Professional Counselors, and Substance Use Disorder Counselors
Pharmacists
“This program will help open doors to financial relief that are typically only thought to be exclusively available to advanced practice providers,” Governor Lamont said. “Whether you’re working in underserved areas, critical shortage facilities, or even in educational settings, opportunities are here for these medical professionals to have their student loans forgiven.”
“We are thrilled to partner with the Connecticut Area Health Education Center to launch this critical program,” Public Health Commissioner Manisha Juthani, MD, said. “By incentivizing healthcare providers to practice in underserved areas, we can make significant progress in improving health outcomes for all Connecticut residents.”
“The Connecticut Area Health Education Center, whose program office is located at UConn Health Center, is proud to play a role in administering this program,” Petra Clark-Dufner, director of the Connecticut Area Health Education Center, said. “We are committed to supporting the healthcare workforce and improving access to care in underserved communities.”
Applications will be accepted beginning May 22, 2024. For application information, visit ctslrp.org.
