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Senate hearing (119th Congress), RUNNING GOVERNMENT LIKE A SMALL BUSINESS: CUT WASTE, CRUSH FRAUD (PDF)

Summary

The printed record of a December 10, 2025 hearing of the Senate Committee on Small Business and Entrepreneurship, S. Hrg. 119–251, titled Running Government Like a Small Business: Cut Waste, Crush Fraud. Opening statements come from Senators Joni Ernst of Iowa and Edward J. Markey of Massachusetts. Witnesses are Luke Rosiak, an investigative reporter at The Daily Wire, who also submitted a real estate slide for the hearing record; Dylan Hedtler-Gaudette of the Project on Government Oversight; and John Hart, Chief Executive Officer of Open the Books, each with a prepared statement.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                                                                                                                                                                S. HRG. 119–251



                                                                                  RUNNING GOVERNMENT LIKE A SMALL BUSINESS:
                                                                                           CUT WASTE, CRUSH FRAUD



                                                                                                                     HEARING
                                                                                                                            BEFORE THE


                                                                                          COMMITTEE ON SMALL BUSINESS
                                                                                             AND ENTREPRENEURSHIP
                                                                                                                               OF THE


                                                                                                     UNITED STATES SENATE
                                                                                                   ONE HUNDRED NINETEENTH CONGRESS
                                                                                                                          FIRST SESSION


                                                                                                                      DECEMBER 10, 2025


                                                                                  Printed for the use of the Committee on Small Business and Entrepreneurship




                                                                                                                              (

                                                                                               Available via the World Wide Web: http://www.govinfo.gov.

                                                                                                              U.S. GOVERNMENT PUBLISHING OFFICE
                                                                                      62–296                              WASHINGTON : 2026




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                                                                                          COMMITTEE ON SMALL BUSINESS AND ENTREPRENEURSHIP

                                                                                                        ONE HUNDRED NINETEENTH CONGRESS


                                                                                                              JONI ERNST, Iowa, Chair
                                                                                                EDWARD J. MARKEY, Massachusetts, Ranking Member
                                                                                 JAMES E. RISCH, Idaho                    MARIA CANTWELL, Washington
                                                                                 RAND PAUL, Kentucky                      JEANNE SHAHEEN, New Hampshire
                                                                                 TIM SCOTT, South Carolina                CORY A. BOOKER, New Jersey
                                                                                 TODD YOUNG, Indiana                      CHRISTOPHER A. COONS, Delaware
                                                                                 JOSH HAWLEY, Missouri                    MAZIE K. HIRONO, Hawaii
                                                                                 TED BUDD, North Carolina                 JACKY ROSEN, Nevada
                                                                                 JOHN R. CURTIS, Utah                     JOHN W. HICKENLOOPER, Colorado
                                                                                 JAMES C. JUSTICE, West Virginia          ADAM B. SCHIFF, California
                                                                                 JON HUSTED, Ohio
                                                                                                       MEREDITH WEST, Republican Staff Director
                                                                                                         SEAN MOORE, Democratic Staff Director




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                                                                                                                                 CONTENTS

                                                                                                                                 DECEMBER 10, 2025

                                                                                                                                  OPENING STATEMENTS
                                                                                                                                                                                                                Page
                                                                                 Joni Ernst, U.S. Senator from Iowa .......................................................................                       1
                                                                                 Edward J. Markey, U.S. Senator from Massachusetts .........................................                                      3

                                                                                                                                          WITNESSES
                                                                                 Mr. Luke Rosiak, Investigative Reporter, The Daily Wire ..................................                                       5
                                                                                     Prepared Statement .........................................................................................                 8
                                                                                     Submission for the Record—Real Estate Slide ..............................................                                  12
                                                                                 Mr. Dylan Hedtler-Gaudette, Acting Vice President, Policy and Government
                                                                                   Affairs, Project on Government Oversight (POGO) ...........................................                                   13
                                                                                     Prepared Statement .........................................................................................                15
                                                                                 Mr. John Hart, Chief Executive Officer, Open the Books ....................................                                     24
                                                                                     Prepared Statement .........................................................................................                26
                                                                                     Submission for the Record—Graphs of Federal Spending ............................                                           28
                                                                                 Dr. Courtney LaFountain, Acting Director, Financial Markets and Commu-
                                                                                   nity Investment, United States Government Accountability Office (GAO) .....                                                   31
                                                                                     Prepared Statement .........................................................................................                33

                                                                                                          ADDITIONAL LETTERS/STATEMENTS FOR THE RECORD
                                                                                 Aleut Federal, LLC—Letter Dated December 10, 2025 .......................................                                       70
                                                                                 Department of Defense—Letter to Senator Sullivan Dated August 25, 2025 ....                                                     73
                                                                                 GovCon Intelligence—Article Dated December 16, 2025 .....................................                                       75
                                                                                 Minority Business Development Agency, U.S. Department of Commerce—
                                                                                   Report Dated June 2022: The Probability of Winning Federal Contracts:
                                                                                   An Analysis of Small Minority Owned Firms ....................................................                                80
                                                                                 Montgomery County Chamber of Commerce GovConNet Council—Statement
                                                                                   Dated December 10, 2025 ....................................................................................                 102
                                                                                 National Congress of American Indians (NCAI)—Statement Dated December
                                                                                   10, 2025 .................................................................................................................   108
                                                                                 Old Harbor Native Corporation—Letter Dated December 10, 2025 ...................                                               111
                                                                                 Poarch Band of Creek Indians—Letter Dated December 10, 2025 .....................                                              115
                                                                                 Senator Dan Sullivan—Statement Dated December 10, 2025 .............................                                           118
                                                                                 Jessica Tillipman, Associate Dean, The George Washington University Law
                                                                                   School—Statement Dated December 10, 2025 ...................................................                                 121
                                                                                 United States Senate Committee on Small Business and Entrepreneurship—
                                                                                   Letter to the U.S. Small Business Administration Dated October 30, 2025 ...                                                  138
                                                                                 White House Council of Economic Advisors—Report Dated December 20,
                                                                                   2024: Racial Disparities in Government Contracting .......................................                                   142
                                                                                 Women’s Procurement Circle—Statement Dated December 10, 2025 ................                                                  171
                                                                                 Alphabetized List of Additional Submissions for the Record, with Cor-
                                                                                   responding Online Links .....................................................................................                175




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                                                                                         RUNNING GOVERNMENT LIKE A SMALL
                                                                                         BUSINESS: CUT WASTE, CRUSH FRAUD

                                                                                                        WEDNESDAY, DECEMBER 10, 2025

                                                                                                             UNITED STATES SENATE,
                                                                                                         COMMITTEE ON SMALL BUSINESS
                                                                                                                     AND ENTREPRENEURSHIP,
                                                                                                                                 Washington, DC.
                                                                                   The committee met, pursuant to notice, at 2:31 p.m., in Room
                                                                                 428A, Russell Senate Office Building, Hon. Joni Ernst, Chair of the
                                                                                 committee, presiding.
                                                                                   Present: Senators Ernst [presiding], Hawley, Husted, and
                                                                                 Hirono.
                                                                                                   OPENING STATEMENT OF SENATOR ERNST
                                                                                    CHAIR. I call the Committee on Small Business and Entrepre-
                                                                                 neurship to order. We’ve all heard Washington, DC. referred to as
                                                                                 the swamp, but these days, it is looking more and more like a pig-
                                                                                 sty. While Iowa small businesses keep their books neat and tidy
                                                                                 and pinch pennies to balance their own budgets, they are the ones
                                                                                 who are hurt when the government is sloppy and reckless with
                                                                                 hard earned taxpayer dollars.
                                                                                    That’s why I made a promise to Iowans to make Washington
                                                                                 squeal. For over a decade, I’ve been exposing egregious Washington
                                                                                 waste with my monthly Squeal Awards. Some examples are too
                                                                                 outrageous to believe. I’m talking about bureaucrats approving PPP
                                                                                 loans for applicants who used pictures of dolls for IDs; imagine giv-
                                                                                 ing Barbie or Ken a taxpayer-funded loan. Not only that, but they
                                                                                 also believe folks claiming to be over 115 years old were alive and
                                                                                 well enough to be approved for 3,095 PPP and EIDL loans worth
                                                                                 $333 million, including $36,000 to a 157-year-old. That’s pure hog
                                                                                 wash!
                                                                                    But this is only the tip of the iceberg. Instead of boosting Main
                                                                                 Street, millions of your tax dollars were wasted through USAID to
                                                                                 fund Iraqi Sesame Street. And this one is unacceptable: Improper
                                                                                 payments, or the government tossing cash into the wrong trough,
                                                                                 have become commonplace.
                                                                                    In Fiscal Year 2024, federal agencies shoveled out $162 billion in
                                                                                 improper payments. The most frustrating part is how simple it is
                                                                                 to stop this waste. A report by the Pandemic Response Account-
                                                                                 ability Committee found that $79 billion in potential COVID fraud
                                                                                 could have been prevented if four basic questions were asked. One,
                                                                                 is the applicant’s social security number valid? Two, if valid, does
                                                                                 the name connected to that number match the name on the appli-




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                                                                                 cation? Three, does the birthday match? And lastly, is the indi-
                                                                                                                                     (1)




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                                                                                                                                     2

                                                                                 vidual alive? Seriously, folks that could have saved $79 billion right
                                                                                 there.
                                                                                    The good news is that we can prevent nearly all improper pay-
                                                                                 ments in the future with my DOGE in Spending Act that enacts
                                                                                 common sense guardrails—like those four simple questions. And
                                                                                 these quick fixes could not come soon enough. Six years after
                                                                                 COVID, scammers are still pigging out on SBA relief funds. I’m
                                                                                 proud this committee advanced my SBA Fraud Enforcement Act,
                                                                                 and I’m eager to see it become law.
                                                                                    Fraudsters snout-deep in pandemic-era shuttered venue and res-
                                                                                 taurant funds must be held accountable. Unfortunately, unless my
                                                                                 bill is passed by the Senate and signed into law, many of these
                                                                                 criminals will soon get away with it. During the prior administra-
                                                                                 tion, USAID repeatedly rebuffed my request for information, using
                                                                                 intimidation and shell games to hide where money is going, how
                                                                                 it’s being spent, and why. This is the same agency that handed
                                                                                 cash to violent terrorists, and funded dance classes in Wuhan. Yes,
                                                                                 the same Wuhan you are thinking of.
                                                                                    As a result of my oversight, I discovered firsthand USAID was
                                                                                 a rogue bureaucracy, operating with little accountability and, at
                                                                                 times, at odds with our nation’s best interests. My findings were
                                                                                 confirmed when, this summer, federal prosecutors convicted a
                                                                                 USAID contracting officer who raked in over $1 million in bribes
                                                                                 to steer more than $550 million in contracts to 8(a) program par-
                                                                                 ticipants.
                                                                                    Unfortunately, the SBA’s 8(a) program has been a magnet for
                                                                                 fraudsters since its inception. Decades of government watchdog in-
                                                                                 vestigations, bipartisan oversight hearings, a patchwork of reforms,
                                                                                 and what is there to show for it? Not a shred of evidence that the
                                                                                 program is worth taxpayers’ investment. It is refreshing to see an
                                                                                 administration take fraud as seriously as I do, and I applaud Ad-
                                                                                 ministrator Loeffler’s efforts to end 8(a) program scams for good.
                                                                                    In the meantime, I have launched my own 8(a) investigation and
                                                                                 introduced the Stop 8(a) Contracting Fraud Act to pause 8(a) no-
                                                                                 bid contracts government-wide until the SBA completes its audit.
                                                                                 I am also urging federal agencies government-wide to adopt this
                                                                                 common-sense moratorium.
                                                                                    Make no mistake, this waste hurts all our small businesses the
                                                                                 most. When COVID fraudsters cashed in, thousands of deserving
                                                                                 small businesses in Iowa were left out in the cold because funds
                                                                                 had run dry. When the Biden USAID sent money to every corner
                                                                                 of the world, small businesses here at home footed the bill as their
                                                                                 taxes skyrocketed.
                                                                                    When 8(a) programs divert government contracts to businesses
                                                                                 committing fraud, legitimate small businesses pay the price losing
                                                                                 jobs, revenue, and growth opportunities. Government contracting
                                                                                 should be based on eligibility and merit, not skin color. I promised
                                                                                 to make Washington squeal, and it is clear that this pig pen of a
                                                                                 swamp needs a thorough mucking out.
                                                                                    I want to thank our witnesses for bravely pulling on their rubber
                                                                                 boots and grabbing their buckets. Thank you all very much. Let’s
                                                                                 clean this up for American taxpayers and put our hardworking




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                                                                                 small businesses first. And I do look forward to hearing your testi-
                                                                                 mony.




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                                                                                                                                     3

                                                                                   I now ask unanimous consent that a statement by Senator Dan
                                                                                 Sullivan of Alaska be entered into the record. Senator Sullivan has
                                                                                 been a fierce advocate for Alaskans and a partner in working to en-
                                                                                 sure fraud is eradicated from federal contracting. And without ob-
                                                                                 jection, so ordered.
                                                                                   I now recognize Ranking Member Markey for his opening state-
                                                                                 ment.
                                                                                                        STATEMENT OF SENATOR MARKEY
                                                                                   Senator MARKEY. Thank you so much, Madam Chair. Today’s
                                                                                 hearing is called, Running Government Like a Small Business: Cut
                                                                                 Waste, Crush Fraud. Sounds important. A more accurate title, how-
                                                                                 ever, would be, Running Government Like a Trump Family Busi-
                                                                                 ness: Cutting Deals with Billionaires and Crushing Small Busi-
                                                                                 nesses. That’s what the title on this hearing should say. Because
                                                                                 this administration, the Trump administration, it’s chosen to focus
                                                                                 their energy on relentlessly attacking small businesses from tariffs,
                                                                                 to healthcare, to electricity prices, to contracts.
                                                                                   Yeah. They’re focused on small businesses, crushing Main Street.
                                                                                 Through the now defunct Department Of Government Efficiency, or
                                                                                 DOGE, the administration disproportionately cut contracts for
                                                                                 women-owned and minority-owned small businesses. Those are the
                                                                                 programs they cut. Additionally, 10 percent of all contracts cut by
                                                                                 DOGE were veteran-owned businesses, most of whom were vet-
                                                                                 erans disabled in the line of service. Can you imagine they cut 10
                                                                                 percent of those contracts for those vets? This is all since January.
                                                                                   While, we all want taxpayer dollars to be well spent, we should
                                                                                 take note of who this administration treats as expendable. It’s
                                                                                 those least able to defend themselves. It’s those least able to flatter
                                                                                 or provide gifts to the President and to his family.
                                                                                   The administration’s most recent fixation, SBA’s 8(a) program,
                                                                                 which is a program that gives small disadvantaged businesses
                                                                                 training, technical assistance, and federal contracting opportunities
                                                                                 for nine years. Now, those businesses are principally Black and
                                                                                 Brown owned in our country. That’s who they’re focusing on, cut-
                                                                                 ting that program for those people who are just a small business
                                                                                 trying to get a foothold in this American economy during this very
                                                                                 difficult economic time with healthcare costs, and with electricity
                                                                                 costs, and with the tariffs all zeroing in on small businesses.
                                                                                   This program was created by a Republican President, President
                                                                                 Nixon and signed into law in 1978. It has done a world of good for
                                                                                 tens of thousands of small businesses, and again, disproportion-
                                                                                 ately Black and Brown, providing access to billions in contracting
                                                                                 opportunities with the largest buyer of goods and services in the
                                                                                 country, the federal government.
                                                                                   Like any federal program, there have been rare cases of bad ac-
                                                                                 tors taking advantage of these resources and they should be held
                                                                                 accountable. They should be made to pay the price. But these rare
                                                                                 instances do not warrant an all out assault on a program that has
                                                                                 created good paying jobs, provided pathways to success for small
                                                                                 businesses, and created economic growth for our country.
                                                                                   In a hearing focused on waste, and fraud, and abuse, we just




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                                                                                 cannot avoid or ignore the elephant in the room: President Trump’s
                                                                                 pay to play system. To receive special status as a foreign country,




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                                                                                 you must gift the President a $400 million jetliner that he gets to
                                                                                 keep when he leaves the White House. That’s unbelievable. To get
                                                                                 a gold mine of government contracts, just pay for the President’s
                                                                                 golden ballroom. To receive an exemption from President Trump’s
                                                                                 terrible tariffs, simply give the President a lavish gift or pay to
                                                                                 dine at Mar-a-Lago.
                                                                                    Can a small business do that? No. They’re not dining at Mar-a-
                                                                                 Lago. They can’t afford it. You got to put up a million bucks to just
                                                                                 get in the door. This is not how honest, hardworking, small busi-
                                                                                 nesses get things done. This is how they get business done in The
                                                                                 Godfather, Godfather Part One. That’s what this White House is all
                                                                                 about.
                                                                                    Because when it comes to true oversight, who gets thrown under
                                                                                 the floodlights? It’s the little guys, the minority, small business
                                                                                 owner, the Black and Brown small businesses, the veteran-owned
                                                                                 small businesses, the local restaurant trying to make it through
                                                                                 the pandemic.
                                                                                    And what is it for? It’s all to help the big guys who hobnob with
                                                                                 the President and don’t want pesky small businesses competing
                                                                                 with them for customers or contracts. Those big guys say crush the
                                                                                 little guys, and by the way, give us all their money in tax breaks
                                                                                 for us, too.
                                                                                    If we’re serious about cutting waste, crushing fraud, helping
                                                                                 small businesses, let’s start at the top. The President’s handouts to
                                                                                 his billionaire buddies aren’t just corruption and an abuse of
                                                                                 power, it’s theft. Theft from small businesses, theft from hard-
                                                                                 working Americans, theft from our future. Every tariff exemption
                                                                                 handed out to the President’s political posse rigs the game against
                                                                                 small businesses trying to survive the President’s disastrous trade
                                                                                 war.
                                                                                    Small businesses had to take the President to the Supreme Court
                                                                                 to try to remove those tariffs on them. My hope is that they’ll rule
                                                                                 that way. But you never know with the Supreme Court. Every dol-
                                                                                 lar the Trump family gets by treating our government as their own
                                                                                 personal piggy bank is money stolen from everyday people. Presi-
                                                                                 dent Trump and his family raked in more than $1.8 billion in cash
                                                                                 and gifts just this year, the first 11 months. It’s Robin Hood in re-
                                                                                 verse. It’s Main Street versus Mar-a-Lago. That’s what this hearing
                                                                                 is all about.
                                                                                    And it’s time Congress does its job, and holds this President ac-
                                                                                 countable for turning the federal government into an arm of the
                                                                                 Trump business organization. The little guys are not the villains.
                                                                                 President Trump’s corruption, and waste, and fraud, and abuse is
                                                                                 America’s real villain, and I look forward to this hearing, Madam
                                                                                 Chair,
                                                                                    CHAIR. Thank you, Ranking Member Markey. And I want to ex-
                                                                                 tend a warm welcome to all of our witnesses. I’m thankful that you
                                                                                 took time out of your busy schedules to share your expertise and
                                                                                 insight with this committee.
                                                                                    I will now introduce our first witness, Mr. Luke Rosiak. Mr.
                                                                                 Rosiak is an Investigative Reporter at The Daily Wire, who has
                                                                                 covered waste in the federal government for nearly 20 years. He is




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                                                                                 the winner of the prestigious 2025 Dao Prize for best reporting on
                                                                                 government waste and the 2022 Media Research Center Bulldog




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                                                                                 Award for outstanding investigative journalism. Congratulations on
                                                                                 your recent Dao Award, and it is well deserved.
                                                                                    Next, Mr. John Hart is the CEO of Open the Books. Before join-
                                                                                 ing Open the Books, he served as the Communications Director to
                                                                                 late U.S. Senator Tom Coburn, where he helped pass landmark
                                                                                 transparency legislation that put federal spending online. His work
                                                                                 at Open the Books includes oversight reports on improper pay-
                                                                                 ments, government waste, and COVID fraud.
                                                                                    Our third witness, Dr. Courtney LaFountain, is the Acting Direc-
                                                                                 tor of Financial Markets and Community Investment at the Gov-
                                                                                 ernment Accountability Office, GAO, in Washington, D.C. Dr.
                                                                                 LaFountain earned her Ph.D. in economics from Washington Uni-
                                                                                 versity in St. Louis, Missouri. She is a recipient of the 2022 Arthur
                                                                                 S. Fleming Award, which recognizes federal employees for out-
                                                                                 standing public service. Thank you again.
                                                                                    And I now recognize Ranking Member Markey to introduce his
                                                                                 witness.
                                                                                    Senator MARKEY. Yeah. Thank you, Madam Chair. Dylan
                                                                                 Hedtler-Gaudette is the Acting Vice President of Government Af-
                                                                                 fairs at the Project on Government Oversight, or POGO. POGO
                                                                                 began in 1981 as a Pentagon watchdog. In the years since, they
                                                                                 have expanded to focus on the entire federal government, fighting
                                                                                 to achieve a more ethical, effective, and accountable federal govern-
                                                                                 ment.
                                                                                    Mr. Hedtler-Gaudette has covered a range of issues including
                                                                                 Congressional stock trading, Pentagon accountability, federal
                                                                                 spending issues, foreign influence and the Foreign Agents Registra-
                                                                                 tion Act, judicial ethics, and Congressional capacity amongst oth-
                                                                                 ers. POGO is one of my all-time favorites, and it’s so great to have
                                                                                 you here today. Thank you.
                                                                                    CHAIR. Great. Thank you, Ranking Member Markey. And briefly,
                                                                                 I’ll take a moment to explain our lighting system to our witnesses.
                                                                                 And Mr. Hedtler-Gaudette, you just talk away, okay, so we’ll let
                                                                                 you know if time is expiring. There are three lights in front of you.
                                                                                 Green means go. Yellow means you are running out of time. And
                                                                                 red means wrap up your remarks. I ask unanimous consent that
                                                                                 the witnesses’ full statements be included in the record. Without
                                                                                 objection, so ordered.
                                                                                    As your written testimony has been made part of the record, the
                                                                                 committee asks that you limit your oral remarks to five minutes.
                                                                                 And with that, Mr. Rosiak, we’ll start with you, and you are recog-
                                                                                 nized for five minutes for your testimony.

                                                                                         STATEMENT OF MR. LUKE ROSIAK, INVESTIGATIVE
                                                                                        REPORTER, THE DAILY WIRE, NASHVILLE, TENNESSEE
                                                                                   Mr. ROSIAK. Thank you, Senator Ernst, Senator Markey, com-
                                                                                 mittee members. It’s an honor to appear before all of you. I’ve been
                                                                                 an investigative reporter for nearly 20 years focused on waste,
                                                                                 fraud, and abuse in the federal government. I concluded many
                                                                                 years ago that the most openly abused and shockingly corrupt pro-
                                                                                 gram in the federal government is so-called ‘‘set aside’’. Contracting




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                                                                                 contracts are set aside from open competition for women and mi-
                                                                                 nority owned businesses and other groups.




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                                                                                    The Small Business Administration coordinates so-called 8(a)
                                                                                 contracting for agencies across the government. That gives this
                                                                                 committee an important jurisdictional vantage point for a big pool
                                                                                 of money at places like the Pentagon. Now, if you were doing some-
                                                                                 thing in your yard like taking down a tree, or doing some other
                                                                                 work on your property, you probably wouldn’t do that work unless
                                                                                 you called around and got, say, three quotes from different vendors.
                                                                                 You choose the one with the best value.
                                                                                    The government would build a tank without even trying to find
                                                                                 the best value first through this mechanism that we call set aside
                                                                                 contracting. The program was created in 1978, mostly to help Black
                                                                                 Americans start businesses since they’d been discriminated against
                                                                                 by the government. But I don’t believe any member of this com-
                                                                                 mittee would support the program if you see how it works, a half
                                                                                 century later.
                                                                                    At least five percent of all federal contracting dollars are diverted
                                                                                 through set-asides. But these billions don’t go to poor minorities in
                                                                                 your states. They go to insiders in the suburbs of DC, which are
                                                                                 already the wealthiest counties in the country. Very little goes to
                                                                                 Black Americans these days.
                                                                                    The racial composition of America is more complex than it was
                                                                                 back in 1978. In the case of first-generation immigrants, this re-
                                                                                 sults in an odd policy that the government is basically prioritizing
                                                                                 foreigners over Americans by one measure. South Asians, people
                                                                                 from the country of India gobble up a lion’s share of 8(a) contracts
                                                                                 while black Americans get only 15 percent. Not 50 percent, but 15
                                                                                 percent.
                                                                                    The scandal isn’t that there have been a few examples of abuse.
                                                                                 The scandal is that it’s hard to find one that isn’t. Pick a random
                                                                                 set a aside contract on USAspending.gov. I quickly chose OCT Con-
                                                                                 sulting LLC when preparing this testimony. So, this isn’t a noto-
                                                                                 rious fraudster that’s been in the news. I haven’t written about this
                                                                                 person. I literally just picked them off a list a couple days ago. It’s
                                                                                 a guy named Atul Kathuria, who lists a home in McLean, Virginia
                                                                                 as his company address.
                                                                                    He received 19 contracts from the federal government, totaling
                                                                                 $43 million without having to show that he had the best price or
                                                                                 the best services. The government didn’t even consider anybody
                                                                                 else. Now, normally it would be illegal to give a contract to a com-
                                                                                 pany with no competition. That can enable bribery and kickbacks.
                                                                                 It’s the kind of thing corrupt countries like Russia do. In this case,
                                                                                 it was legal because the government certified OCT Consulting as
                                                                                 a, ‘‘Subcontinent Asian Indian American-owned Small Business
                                                                                 8(a) Participant.’’
                                                                                    Well, perhaps the SBA forgot to check with the U.S. Census Bu-
                                                                                 reau. Indian Americans are the wealthiest demographic in America
                                                                                 with higher median income than whites. These contracts are in the
                                                                                 field of IT, which didn’t even exist during the era of government
                                                                                 discrimination. Indians have never been underrepresented in the
                                                                                 field of IT. They’re actually overrepresented in that field.
                                                                                    Now, a listing of DC’s most expensive real estate transaction




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                                                                                 shows that earlier this year, Atul bought an 11,000 square foot es-
                                                                                 tate replete with a wine cellar for $7 million. You can see it up




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                                                                                 there on the screen. Minority ownership is just to win a contract,
                                                                                 not to fix societal disparities at any meaningful scale.
                                                                                    Every staff member listed on OCT Consulting’s website is a
                                                                                 white man except for the owner and his wife. What did Atul do be-
                                                                                 fore he became a disadvantaged businessman and overcame all
                                                                                 odds to become a millionaire? He went to George Washington Uni-
                                                                                 versity, and worked for 15 years as a financial consultant at Ernst
                                                                                 and Young and Booz Allen Hamilton.
                                                                                    This kind of thing is a disgrace. You’ve all seen the video where
                                                                                 an exec from Native American 8(a) ATI Consulting was caught on
                                                                                 camera saying they just subcontract the work out to companies like
                                                                                 Accenture and keep a huge cut. The story here isn’t that a wily
                                                                                 businessman concealed this from the government and finally got
                                                                                 caught. It’s that 8(a) is actually a corrupt conspiracy between gov-
                                                                                 ernment procurement officers and big companies. The companies,
                                                                                 the beltway bandits, like Accenture, Booz Allen, Deloitte, Lockheed
                                                                                 Martin.
                                                                                    Somebody from government will be talking to a friend at one of
                                                                                 these companies and say, ‘‘I have some work that you guys might
                                                                                 be a good fit for. Let’s work together.’’ But if Booz Allen, say, has
                                                                                 to compete for it, they’ll have to make sure they charge less than
                                                                                 Deloitte. The process would take forever and there’s no guarantee
                                                                                 they’ll get it.
                                                                                    So, the contracting officer encourages the beltway bandit to seek
                                                                                 out a random 8(a) that’s listed waiting like a shell company on one
                                                                                 of the contract vehicles. The government can immediately award
                                                                                 the contract to the 8(a) knowing that they’ll subcontract the work
                                                                                 back to the big firm. It’s just a way to bypass competitive bidding
                                                                                 a process we have in place for a reason. So, the guy in the James
                                                                                 O’Keefe video didn’t swindle the government. We all knew the gov-
                                                                                 ernment knew there are skyscrapers down the street in Tyson’s
                                                                                 Corner, defense contractors working on advanced weapons that
                                                                                 don’t have to bid competitively for contracts because we say they’re
                                                                                 Alaskan Native corporations. Every one of us in this room knows
                                                                                 there are not Native Alaskans in those buildings.
                                                                                    8(a) creates a random group of influence-peddlers, who like lob-
                                                                                 byists, get rich by selling their access to government insiders for
                                                                                 the benefit of big business while driving up the costs for all of us.
                                                                                 This is the kind of thing people hate about Washington. You owe
                                                                                 it to voters to end this program.
                                                                                    [The prepared statement of Mr. Rosiak follows.]




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                                                                                   CHAIR. Thank you for the testimony, Mr. Rosiak. And next, we
                                                                                 will go to Mr. Hedtler-Gaudette. Mr. Hedtler-Gaudette, you’re now
                                                                                 recognized for five minutes for your testimony.
                                                                                 STATEMENT OF MR. DYLAN HEDTLER–GAUDETTE, VICE
                                                                                  PRESIDENT OF POLICY AND GOVERNMENT AFFAIRS,
                                                                                  PROJECT ON GOVERNMENT OVERSIGHT (POGO), WASH-
                                                                                  INGTON, D.C.
                                                                                    Mr. HEDTLER-GAUDETTE. Thank you, Chair Ernst, Ranking
                                                                                 Member Markey, and members of the committee. I appreciate the
                                                                                 opportunity to testify before you today on the important issue of
                                                                                 waste, fraud, and abuse in the federal government, particularly in
                                                                                 the federal contracting process. This is a really important and per-
                                                                                 sistent issue, and I’m pleased to see the Senate Small Business
                                                                                 Committee taking it up.
                                                                                    My name is Dylan Hedtler-Gaudette, and I’m the Acting Vice
                                                                                 President of Policy and Government Affairs at the Project on Gov-
                                                                                 ernment Oversight, or POGO. We are a non-partisan, independent
                                                                                 watchdog group with nearly 45 years of experience promoting more
                                                                                 accountability, transparency, and effectiveness in federal govern-
                                                                                 ment. We literally exist to combat abuse of power and corruption,
                                                                                 which necessarily includes trying to root out waste, fraud, abuse,
                                                                                 and conflicts of interest.
                                                                                    As you can imagine from the name of our organization, we be-
                                                                                 lieve strongly in the power and the value of oversight. This hearing
                                                                                 today is a prime example of good oversight work. We believe
                                                                                 strongly that good oversight work is indispensable to the pursuit
                                                                                 of good governance. And this is why it’s been so alarming to see
                                                                                 what has been happening over the past year or so.
                                                                                    The current administration has systematically dismantled the
                                                                                 very foundation of the federal government that it is supposed to be
                                                                                 leading, which has included attacking key oversight institutions,
                                                                                 whether it’s firing Inspectors General, attacking oversight bodies
                                                                                 such as the Government Accountability Office, cutting off access to
                                                                                 key agencies or press and journalists, nominating manifestly unfit
                                                                                 and unqualified individuals to serve in critical oversight positions,
                                                                                 or largely relegating Congress to the sidelines.
                                                                                    The current administration has made a mockery of the very con-
                                                                                 cept of oversight and accountability in government. We also saw
                                                                                 the hyped, but largely failed, effort to root out waste, fraud, and
                                                                                 abuse under the auspices of the so-called Department of Govern-
                                                                                 ment Efficiency. Beyond that, we’ve seen direct assaults on the con-
                                                                                 stitutional structure of government, which has included the illegal
                                                                                 impoundment and withholding of Congressionally appropriated
                                                                                 funds and the unlawful firing of large numbers of federal workers.
                                                                                    We have already heard today, and we’ll continue to hear more
                                                                                 about the Small Business Administration’s 8(a) Business Develop-
                                                                                 ment Program. We should put this program in a little bit of context
                                                                                 at the outset here. All 8(a) contract dollars comprise about 5.4 per-
                                                                                 cent of the total $755 billion that were handed out in federal con-
                                                                                 tract last year, the vast majority of which are awarded to very
                                                                                 large, well-connected powerful corporations.




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                                                                                    If there are people taking advantage of the 8(a) program or any
                                                                                 other program in government, they should be held accountable. But




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                                                                                 we must realize that oversight bandwidth and resources are ex-
                                                                                 tremely finite and scarce, and we need to triage those resources,
                                                                                 and focus on the most egregious and the largest examples of waste,
                                                                                 fraud, and abuse. We should not select oversight targets on the
                                                                                 basis of political or ideological agendas.
                                                                                    My primary purpose here today is not to criticize, and complain,
                                                                                 and to point out bad things that have happened. I’m here to pro-
                                                                                 pose solutions. So, I want to focus on a couple of solution areas
                                                                                 here, but there are many more I lay out in my written testimony.
                                                                                    First, we must protect, strengthen, and preserve the independ-
                                                                                 ence and the effectiveness of key watchdog and oversight practi-
                                                                                 tioners such as Inspectors General and the Government Account-
                                                                                 ability Office. We must also sufficiently resource and fund those or-
                                                                                 ganizations so that they can perform their critical oversight duties
                                                                                 effectively.
                                                                                    The Senate also has an especially pivotal role to play in pro-
                                                                                 viding advice and consent on the nomination of the individuals who
                                                                                 should be leading those entities. And the Senate must never allow
                                                                                 the confirmation of politically compromised, unfit, and unqualified
                                                                                 individuals.
                                                                                    We must also take a long hard look at the ethics rules and the
                                                                                 enforcement of those rules that we have on the books currently.
                                                                                 They’re wholly insufficient to the task of rooting out corruption,
                                                                                 conflicts of interest in cronyism, which play midwife to waste fraud
                                                                                 and abuse. We must also halt the pernicious effects of the revolving
                                                                                 door between agencies and the very industries that those agencies
                                                                                 are supposed to oversee and regulate.
                                                                                    We have an opportunity before us here today, and in the rest of
                                                                                 the 119th Congress, to advance real common-sense reforms to pro-
                                                                                 mote government integrity and crack down on waste, fraud, and
                                                                                 abuse. Me and my organization stand ready, willing, and able to
                                                                                 partner with anyone who wants to turn those goals into reality.
                                                                                    Thank you for having me here today, and I look forward to an-
                                                                                 swering your questions.
                                                                                    [The prepared statement of Mr. Hedtler-Gaudette follows.]




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                                                                                   CHAIR. Thank you, Mr. Hedtler-Gaudette. We appreciate your
                                                                                 testimony. And next, we will move to Mr. Hart. Mr. Hart, you are
                                                                                 now recognized for five minutes for your testimony.
                                                                                 STATEMENT OF MR. JOHN HART, CHIEF EXECUTIVE OFFICER,
                                                                                        OPEN THE BOOKS, KNOXVILLE, MARYLAND
                                                                                    Mr. HART. Madam Chair Ernst, Ranking Member Markey, and
                                                                                 distinguished Senators, thank you for the invitation to testify
                                                                                 today.
                                                                                    Every dollar saved in Washington is a dream realized somewhere
                                                                                 in America. Nowhere is that more true than in the small business
                                                                                 community. Small businesses aren’t just the engine of growth, they
                                                                                 are also teachers. They teach us that our Founders were right.
                                                                                 That Thomas Jefferson was onto something when he said the nat-
                                                                                 ural progress of things is for liberty to yield and government to
                                                                                 gain ground. So, I commend this committee for truly listening, for
                                                                                 hearing, and we’re here, of course, because government doesn’t op-
                                                                                 erate like a small business.
                                                                                    Instead of doing more with less, government does less with more.
                                                                                 Over the past 100 years, the federal government has grown mas-
                                                                                 sively. In 1925, it’s been about $484 per person adjusted for infla-
                                                                                 tion. Today, that number is more than $20,000 per person. And in
                                                                                 our economy, we see this at work. The best way to make something
                                                                                 expensive is for government to make it affordable.
                                                                                    Sectors that have been the most lavishly subsidized, such as
                                                                                 healthcare and education have seen the worst inflation. On the
                                                                                 other hand, sectors that have not been as heavily subsidized such
                                                                                 as electronics tend to produce goods and services that get better
                                                                                 and more affordable over time. It’s pretty simple. TVs get thinner
                                                                                 while government gets bigger, while government borrows to avoid
                                                                                 hard choices.
                                                                                    Small businesses live in the real world of finite resources. Our
                                                                                 unsustainable safety net programs are absolutely the primary driv-
                                                                                 ers of our debt and deficit, in particular, healthcare fraud. But gov-
                                                                                 ernment salaries are part of the problem. Between 2020 and 2024,
                                                                                 government salaries rose 33 percent faster than private sector
                                                                                 wages.
                                                                                    Meanwhile, the number of federal employees earning more than
                                                                                 $200,000 a year rose by 82 percent to bring the number to 70,000
                                                                                 employees. And today, we have more than 400 agencies and sub-
                                                                                 agencies in the federal government. Do small businesses really
                                                                                 need 400 agencies to succeed, or would they be better off at 200,
                                                                                 100, or maybe the 4 our Founders authorized in the Constitution?
                                                                                    Instead of expanding federal agencies, we should be expanding
                                                                                 their agency. Meanwhile, the agency charged with helping small
                                                                                 businesses often misses the mark across the country. We see SBA
                                                                                 lending flowing to organizations that most Americans would never
                                                                                 consider small. SBA-backed loans have gone to Fortune 500 firms,
                                                                                 Rolex stores, Napa wineries, luxury spas, and plastic surgery cen-
                                                                                 ters. These aren’t the mom-and-pop shops Congress intended to
                                                                                 support.
                                                                                    Since 2023, our auditors found more than $105 million in SBA




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                                                                                 loans for private country clubs, beach clubs, tennis and racket
                                                                                 clubs, and yacht clubs. Nearly half of that in 2025 alone. Another




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                                                                                 11.8 billion went to highly capitalized investment funds and ven-
                                                                                 ture finance firms, which was aid to Wall Street, not Main Street.
                                                                                    And fraud and improper payments compound the problem. Dur-
                                                                                 ing the pandemic, the SBA issued paycheck protection loans to
                                                                                 50,000 entities on Treasury’s do-not-pay list, a failure that modern-
                                                                                 ized data systems could have prevented. Major law firms and ac-
                                                                                 counting firms received $1.4 billion despite showing little or no fi-
                                                                                 nancial hardship.
                                                                                    And of course, we all know age-related fraud also flourished. In
                                                                                 2021 and 2022, SBA issued 5,593 loans to businesses owned by
                                                                                 people who said they were 11 years old or younger. Now, I applaud
                                                                                 that initiative, but I think that may not be true. While 3,095 loans
                                                                                 went to borrowers aged 115 or older. That’s $645 million in ques-
                                                                                 tionable loans in just two years. You memorably noted, Senator
                                                                                 Ernst, some fraudsters uploaded pictures of Barbie dolls as forms
                                                                                 of ID to obtain loans. So, I guess that makes us all kin, you know,
                                                                                 accessories to the fraud and waste of our own taxpayer dollars.
                                                                                    But the good news is our system is amenable to change. Twenty
                                                                                 years ago, my late boss, Senator Tom Coburn, teamed up with a
                                                                                 young Senator from Illinois named Barack Obama to pass land-
                                                                                 mark transparency legislation that put all federal spending online
                                                                                 for the first time. Obama said it is not often that two Senators
                                                                                 from different parties are able to bridge the partisan divide in this
                                                                                 town and get something accomplished.
                                                                                    But the American people demand greater transparency and ac-
                                                                                 countability. And it is our honor and privilege. Indeed, it is our
                                                                                 duty to provide the tools to help make that possible. At Open the
                                                                                 Books, we are continuing that work. We’re encouraging real time
                                                                                 transparency and building next generation AI tools. We believe the
                                                                                 best way to thwart a surveillance state is with a surveillance citi-
                                                                                 zenry.
                                                                                    So, thank you, and I look forward to your questions.
                                                                                    [The prepared statement of Mr. Hart follows.]




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                                                                                   CHAIR. Thank you, Mr. Hart. And Dr. LaFountain, you are now
                                                                                 recognized for five minutes for your testimony.
                                                                                 STATEMENT OF DR. COURTNEY LAFOUNTAIN, ACTING DIREC-
                                                                                  TOR, FINANCIAL MARKETS AND COMMUNITY INVESTMENT,
                                                                                  GOVERNMENT ACCOUNTABILITY OFFICE (GAO), WASH-
                                                                                  INGTON, D.C.
                                                                                   Dr. LAFOUNTAIN. Chair Ernst Ranking, Member Markey, and
                                                                                 members of the committee, thank you for the opportunity to dis-
                                                                                 cuss GAO’s work on Small Business Administration programs.
                                                                                   SBA’s mission is to help Americans start, grow, and build small
                                                                                 businesses. Today, I’d like to discuss opportunities we’ve identified
                                                                                 for SBA to improve management of fraud risks, improper pay-
                                                                                 ments, and contracting programs to better meet that mission in the
                                                                                 future. And my testimony draws on recommendations from GAO
                                                                                 reports in these areas since the spring of 2020. So, I’ll begin with
                                                                                 opportunities to better manage fraud risks and improper payments
                                                                                 that surfaced during the pandemic.
                                                                                   SBA moved quickly to set up programs to respond to the
                                                                                 pandemic’s economic shock. And altogether, it made or guaranteed
                                                                                 more than $1 trillion in loans and grants, and assisted more than
                                                                                 10 million small businesses. But the speed of those loan approvals
                                                                                 came at the expense of oversight and fraud risk management, espe-
                                                                                 cially early on. Our work uncovered several weaknesses such as
                                                                                 heavy reliance on self-certification and pay-and-chase approaches,
                                                                                 rather than putting stronger upfront safeguards in place against
                                                                                 fraud and other improper payments.
                                                                                   So, where SBA has acted on our recommendations, we’ve seen
                                                                                 some clear improvements. It’s conducted fraud risk assessments,
                                                                                 and put controls in place to prevent funding from going to potential
                                                                                 fraudsters or ineligible applicants. And as of the end of Fiscal Year
                                                                                 2025, we estimate that improved oversight saved the government
                                                                                 at least $30 billion.
                                                                                   All that being said, fraud risks and improper payments didn’t
                                                                                 disappear with the end of the public health emergency. SBA’s pan-
                                                                                 demic programs still involve large numbers of loans and grants
                                                                                 being reviewed, monitored, and serviced. Because of that, SBA
                                                                                 needs to continue strengthening its safeguards, for example, by ex-
                                                                                 panding its use of data analytics for detecting fraud, strengthening
                                                                                 post-award monitoring, and improving processes for referring po-
                                                                                 tential fraud cases to its Inspector General.
                                                                                   In addition, SBA should enhance its capacity to identify and
                                                                                 track overpayments and subsequent recoveries. I also want to em-
                                                                                 phasize that the lessons learned about fraud risk management
                                                                                 from SBA’s pandemic programs do remain relevant for the agency’s
                                                                                 other programs. For example, the pandemic programs highlighted
                                                                                 the importance of conducting robust fraud risk assessments. And
                                                                                 we’ve reported recently on weaknesses in fraud risk assessments by
                                                                                 agencies participating in small business research programs, and we
                                                                                 identified steps SBA can take through its oversight role to help im-
                                                                                 prove the quality of those assessments should those programs be
                                                                                 reauthorized.




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                                                                                   Our work has also underscored the value of robust internal con-
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                                                                                 cants. We’ve reported recently on weaknesses in the data systems
                                                                                 that SBA uses to certify its small businesses eligibility for con-
                                                                                 tracting assistance programs. And while we didn’t specifically ex-
                                                                                 amine those systems through the lens of fraud risk management,
                                                                                 a more secure, reliable system for validating, maintaining, and dis-
                                                                                 seminating information about program eligibility would clearly
                                                                                 help reduce risks.
                                                                                   Finally, in June, the SBA Administrator announced a review of
                                                                                 fraud in the 8(a) Business Development Program following a De-
                                                                                 partment of Justice investigation, that you’ve discussed, involving
                                                                                 bribery and businesses participating in the 8(a) program. Applying
                                                                                 the lessons that SBA learned about fraud risk management and its
                                                                                 pandemic programs could be applied to support this effort as well.
                                                                                   So, bottom line, with a more robust system of internal controls
                                                                                 and fraud risk management, SBA would be better placed to support
                                                                                 small businesses both during normal times and in future emer-
                                                                                 gencies, while also ensuring that taxpayer dollars go where they
                                                                                 should.
                                                                                   So, this concludes my opening remarks, and thank you again for
                                                                                 the opportunity to speak here today.
                                                                                   [The prepared statement of Dr. LaFountain follows.]




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                                                                                    CHAIR. Thank you everyone for the testimony, and we’ll move
                                                                                 into the question-and-answer portion of today’s hearing. And I now
                                                                                 recognize myself for five minutes for questions. And Mr. Rosiak,
                                                                                 we’ll start with you.
                                                                                    Today, the 8(a) program allows Washington insiders to sell gov-
                                                                                 ernment access and contract awards. What’s your assessment of
                                                                                 the program’s current oversight mechanisms and how effective
                                                                                 have they been in preventing abuse?
                                                                                    Mr. ROSIAK. So, oversight hasn’t worked and it’s not going to
                                                                                 work. Set asides are inherently extraordinarily vulnerable to cor-
                                                                                 ruption and fraud and waste. Wherever there’s the prospect of mil-
                                                                                 lions of dollars going to somebody without the usual competitive
                                                                                 process, the free market is going to find creative ways to get that
                                                                                 money to where it would otherwise have gone, which unfortunately,
                                                                                 often means big companies.
                                                                                    This waste is massive. If you look at, for example, the women-
                                                                                 owned businesses in certain industries, say, construction, asphalt
                                                                                 paving, things like that. Anecdotally, everybody that I talk to says
                                                                                 the vast majority of these companies are actually owned by the
                                                                                 husband of the woman that’s the supposed owner. But realistically,
                                                                                 how would the government ascertain who’s really in control of the
                                                                                 company? You’d almost have to—the government would practically
                                                                                 have to be in the bedroom with them there to see who’s exerting
                                                                                 control over this business. It’s not realistic.
                                                                                    In cases of pass throughs, the disadvantaged company is sup-
                                                                                 posed to retain 51 percent of the proceeds, but it’s virtually impos-
                                                                                 sible to stop pass throughs without having the sort of information
                                                                                 that the government would realistically never see. There’s so many
                                                                                 ways around it.
                                                                                    For example, if you partner with a non-disadvantaged company
                                                                                 that’s supposed to get 49 percent or less, you could put a lot of the
                                                                                 expenses on the disadvantaged side, including maybe even taking
                                                                                 some of the staff from the non-disadvantaged company, and tempo-
                                                                                 rarily hiring them, and putting them on the books of the disadvan-
                                                                                 taged company.
                                                                                    It’s trivial to hit that 51 percent marker. Not to mention that,
                                                                                 you know, in some cases, they may just keep 51 percent if they’re
                                                                                 too lazy to cook the books a bit. Just keep 51 percent as essen-
                                                                                 tially—you know, Senator Markey made a Godfather reference ear-
                                                                                 lier. That’s what I’ve heard. Some of these 8(a), a contractor lik-
                                                                                 ened himself to the mafia and said it’s basically like the protection
                                                                                 money or whatever you have to pay the mobsters to get these con-
                                                                                 tracts.
                                                                                    The big companies kind of know they have an unspoken agree-
                                                                                 ment with the procurement officers and these 8(a) contractors that
                                                                                 you got to cut them in on that. And I think that’s not going to
                                                                                 change. I don’t see any way around that without basically just end-
                                                                                 ing the practice of set asides.
                                                                                    CHAIR. Wow. Thank you for that response. Mr. Hart, I want to
                                                                                 go to something that you referenced in your testimony. You men-
                                                                                 tioned that your former boss, Senator Tom Coburn, someone that




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                                                                                 many of us respected so much, he worked with then-Senator
                                                                                 Barack Obama. You know, one of these instances where we have




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                                                                                 people of different parties that are coming together to really do
                                                                                 something good for our taxpayers.
                                                                                    And what they did, they wrote the law creating
                                                                                 USASpending.gov, and that’s a searchable public website of govern-
                                                                                 ment spending. My team spends a lot of time on that website. Was
                                                                                 it their intent for other transaction agreements, or the OTAs, to be
                                                                                 omitted from the website?
                                                                                    Mr. HART. Absolutely not. Senator, that was never their inten-
                                                                                 tion. And as you’ve noted, that’s a tremendous problem right now
                                                                                 with USAspending. And that is one of the reforms that we need to
                                                                                 do is immediately fix and patch that so that money cannot be hid-
                                                                                 den from taxpayers.
                                                                                    But we have to look at why did the Founders write transparency
                                                                                 into the Constitution? It’s important to note they used the word
                                                                                 ‘‘shall’’ in Article I, section 9, clause 7. ‘‘Shall provide a regular ac-
                                                                                 counting of receipts.’’ They didn’t say you can provide that if you
                                                                                 feel like it, if it’s convenient for you, and your political opponents
                                                                                 and will punish your enemies. They said shall. So, it’s a require-
                                                                                 ment, and that language precedes the Bill of Rights in the First
                                                                                 Amendment itself.
                                                                                    So, transparency is a foundational first principle. It’s the oxygen
                                                                                 in the public square. We can’t speak if we can’t breathe. So, if they
                                                                                 wrote that today, I’m convinced they would demand real time
                                                                                 transparency be the norm. And our ambition 20 years ago wasn’t
                                                                                 just to pass a law, it was to create a norm and to create this as-
                                                                                 sumption that, of course, government spending’s online, of course
                                                                                 we can search what government is doing.
                                                                                    You know, government always lags behind technology. So, we
                                                                                 need to move very quickly to upgrade our transparency laws today.
                                                                                    CHAIR. Yeah, I agree. Because bottom line, if we don’t know who
                                                                                 is receiving taxpayer dollars and why, then there’s no way for us
                                                                                 to track that and hold recipients responsible for delivering what
                                                                                 they’ve promised to our taxpayers. So, I’m in complete agreement
                                                                                 with that. My time is expiring, and I’ll reserve the rest of my ques-
                                                                                 tions for another round. And with that, I will turn to Senator
                                                                                 Hirono of Hawaii.
                                                                                    Senator HIRONO. Thank you, Madam Chair. As we’re focusing on
                                                                                 waste, fraud, and abuse, you know, there’s just so much of that
                                                                                 rampant in this regime that I hardly know where to begin. And
                                                                                 while this is a Small Business Committee, and you want to focus
                                                                                 on waste, fraud, and abuse in small business segment, there is
                                                                                 massive waste, fraud, and abuse going on in our government.
                                                                                    And I only need to point out to things such as the destruction
                                                                                 of the White House and a ballroom being paid for by individuals
                                                                                 and corporations that seek to get support from this administration.
                                                                                 If that isn’t pay to play, I don’t know what is. You have the Border
                                                                                 Czar accepting $50,000 and what looks like bribes to him lending
                                                                                 contracts to people that he has a relationship or even ownership in-
                                                                                 terest in. Talk about ethical problems. There’s all that.
                                                                                    And meanwhile, this regime has gotten rid of all of the entities,
                                                                                 the independent entities such as the IGs, who might be able to
                                                                                 point out to us overseers that this kind of waste, fraud, and abuse




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                                                                                 is going on. I am also aware that the chair has sent letters to al-
                                                                                 most two dozen agencies and departments asking for—I don’t




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                                                                                 know, demanding, asking for a pause on the 8(a) program. I don’t
                                                                                 even know if these agencies or departments have the authority to
                                                                                 do such a pause.
                                                                                    Because we’re talking about contracts and who knows—you
                                                                                 know, I don’t even know what that means to pause, but to know
                                                                                 that the 8(a) program consists of entity-owned businesses, which
                                                                                 mean we are Alaska Native corporations, Native Hawaiian organi-
                                                                                 zations, tribal organizations, these are entities that have to give
                                                                                 back to the communities and who can access contracts, large con-
                                                                                 tracts up to $100 million. And the 8(a) also includes individual-
                                                                                 owned businesses, and they have to show that they are economi-
                                                                                 cally and socially disadvantaged.
                                                                                    So, Madam Chair, when you write a letter saying you want to
                                                                                 pause on the 8(a) program, you are basically focusing your atten-
                                                                                 tion on the native-owned businesses who hire thousands of people
                                                                                 giving back to the communities, all alleging massive fraud. I would
                                                                                 like to see that if there is fraud going on in the 8(a) program, as
                                                                                 if there is fraud in any other program, we should go after these
                                                                                 people. You don’t go in there and say wipe out the entire program.
                                                                                 So, I’d say that is definitely overkill, and I want to record my seri-
                                                                                 ous concern about what you are doing, Madam Chair.
                                                                                    I have a question for Mr. Hedtler-Gaudette. So, would you say
                                                                                 that you have an awareness of the 8(a) program? Would you say
                                                                                 that it is fraught with rampant fraud and abuse?
                                                                                    Mr. HEDTLER-GAUDETTE. No, no. I would say that, as you just
                                                                                 mentioned, with any program in the federal government, especially
                                                                                 ones that deal with money, there are going to be people who take
                                                                                 advantage of the system, bad actors.
                                                                                    Senator HIRONO. Yeah. And considering that the 8(a) program
                                                                                 consists of maybe $25 billion or so in contracts versus, what is it?
                                                                                 $755 billion?
                                                                                    Mr. HEDTLER-GAUDETTE. That’s right.
                                                                                    Senator HIRONO. I should think that there might be concerns
                                                                                 about waste, fraud, and abuse in all those entities getting the $755
                                                                                 billion in government contracts. And I am very aware of the need
                                                                                 for contract reform within the Armed Services Committee. Because
                                                                                 I have sat on that committee for over 12 years, and the former
                                                                                 chair of that committee has spent his entire time chairing that
                                                                                 committee trying to figure out how to do contracting reform.
                                                                                    So, we know that there are issues relating to oversight of all of
                                                                                 these that the amounts of federal dollars that go out. Now, this is
                                                                                 a desire to help entities that would otherwise have a hard time get-
                                                                                 ting a fair shake and getting a share of federal contracts. This com-
                                                                                 mittee is actually supposed to be supporting those efforts not to
                                                                                 support waste and fraud, of course not, but to enable entities that
                                                                                 would otherwise have a difficult time getting their opportunity to
                                                                                 provide services to our country.
                                                                                    When I think of all of the obvious conflict of interest and pay-
                                                                                 to-play activity that is going on, not to mention the President want-
                                                                                 ing $200 million from the Department of Defense, which he con-
                                                                                 siders his law firm, he considers Pam Bondi, his lawyer. He wants
                                                                                 the DOD to go after all his enemies. Well, what is that but abuse?




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                                                                                 Why don’t we pay attention to those things.
                                                                                    CHAIR. You have two seconds, Senator.




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                                                                                    Senator HIRONO. I have run out of time.
                                                                                    CHAIR. Yes, thank you. And just because the member has
                                                                                 brought into question my motives. I did say pause on the 8(a) pro-
                                                                                 gram. I did not say cancel the 8(a) program, because of the recent
                                                                                 abuse that has been brought to light through various investigative
                                                                                 pieces of journalism.
                                                                                    Senator HIRONO. Why don’t you [Off mic.]
                                                                                    CHAIR. You are out of order Senator Hirono. Thank you.
                                                                                    So, because of the abuse that has existed in the system, and I
                                                                                 think most Americans, and especially, our small businesses, would
                                                                                 want us to open the books and provide transparency. So, that’s
                                                                                 what we were asking is a complete audit. Those that are fearing
                                                                                 audits perhaps shouldn’t be participating in federal government
                                                                                 programs. I began my political career as an auditor. I believe in
                                                                                 transparency and oversight.
                                                                                    So, next, we will recognize Senator Husted of Ohio.
                                                                                    Senator HUSTED. Thank you, Chair Ernst. And I appreciate what
                                                                                 you’re doing by raising this issue, and giving us an opportunity to
                                                                                 talk about it today. I’m just blown away by the idea that the people
                                                                                 think that given the events of the recent events, that fraud is not
                                                                                 an issue.
                                                                                    The COVID fraud in the system was outrageous, including unem-
                                                                                 ployment compensation. We’re dealing with an issue in Minnesota
                                                                                 right now where perhaps as much as a billion dollars was stolen
                                                                                 and money diverted away from what was supposed to be a food
                                                                                 program for poor kids into the hands of criminals.
                                                                                    And I was just on the Senate floor talking about the Affordable
                                                                                 Care Act premium subsidies, which we know have been ripped off
                                                                                 between—well, $21 billion and $27 billion according to different re-
                                                                                 ports, including one from the GAO. And this is a huge issue be-
                                                                                 cause people lose trust in government when they think their pro-
                                                                                 grams don’t work.
                                                                                    And I’m going to ask each to answer a yes or no question because
                                                                                 I’m interested in your take. Because I’ll tell you quick story. I was
                                                                                 with a road contractor that does aggregates, asphalts, and things
                                                                                 like that. And I asked him about—which he’s not part of any set
                                                                                 aside program. I said, ‘‘What do you think about these set aside
                                                                                 programs?’’ He said, ‘‘They don’t really bother me because every-
                                                                                 body who has a set aside just brings their trucks here, fills them
                                                                                 up with my stuff, my aggregates, marks up the price, and then de-
                                                                                 livers it to the same place that I would.’’
                                                                                    So, I’m going to ask a question. Is that illegal?
                                                                                    Mr. ROSIAK. Do you want one word?
                                                                                    Senator HUSTED. One word.
                                                                                    Mr. ROSIAK. Yes.
                                                                                    Senator HUSTED. Legal, Mr.——
                                                                                    Mr. HEDTLER-GAUDETTE. No.
                                                                                    Senator HUSTED [continuing]. Gaudette? No?
                                                                                    Mr. HART. Yes.
                                                                                    Dr. LAFOUNTAIN. Based on our work, I actually don’t know the
                                                                                 answer, but I’d be happy to connect you with our experts on that.
                                                                                    Senator HUSTED. So, the answer I received back when I asked




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                                                                                 questions about it is that that’s not illegal. It is offensive. It’s not
                                                                                 how these programs would be designed, and it’s a ripoff to the tax-




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                                                                                 payers. I think we could all agree with that, though. And it may
                                                                                 not be illegal, but I hope, Chair, we work on this. That we make
                                                                                 that kind of stuff illegal because it’s not, in my opinion, what the
                                                                                 programs are supposed to be about.
                                                                                   And I know finding the fraudsters in the act is a hard thing to
                                                                                 do. But we have new technologies at our disposal, things like AI
                                                                                 tools. And so, I’m interested, I’ll start with you, Dr. LaFountain.
                                                                                 What tools could—tech tools like AI, is it possible that we could do
                                                                                 a better job with tools like that?
                                                                                   Dr. LAFOUNTAIN. So, let me share a couple of things that we’ve
                                                                                 learned from looking at the role of data analytics and similar tools
                                                                                 in fraud detection and prevention. We have definitely learned that
                                                                                 leveraging big amounts of information and big data across multiple
                                                                                 programs is really important for helping agencies detect and pre-
                                                                                 vent fraud.
                                                                                   We have also learned that leveraging external data, so an agency
                                                                                 needs to look outside of it of itself and, you know, find other ways
                                                                                 to validate information that it’s receiving. That’s another important
                                                                                 way for agencies to detect fraud. So, we do have some work looking
                                                                                 at how AI can be used for this purpose and in other in other pur-
                                                                                 poses. And we’d be happy to share the findings of that when we’re
                                                                                 completed our work.
                                                                                   Senator HUSTED. Okay. Mr. Hart, you have thoughts on that? Or
                                                                                 what other tools should we use? Because we have this fraud. I
                                                                                 mean, a lot of it apparently is in the missed design of these pro-
                                                                                 grams, right? That while they may be well intended and noble in
                                                                                 their pursuit, the practical application is that the fraudsters always
                                                                                 seemed to outwit government and misuse these programs, and
                                                                                 don’t use them for the purposes that they were intended.
                                                                                   Mr. HART. Well, thank you for that. I’ll try to be very brief, but
                                                                                 I have some experience in this. So, between stints when I worked
                                                                                 in the Senate, now to Open the Books, I was a consultant and
                                                                                 worked quite a bit with Silicon Valley companies who people
                                                                                 who’ve designed these technologies.
                                                                                   So, I’m excited about the technology for a couple reasons. What
                                                                                 AI can do is pattern recognition and pattern prediction. So, I was
                                                                                 just in London recently, and there are live facial recognition vans
                                                                                 everywhere. So, I found that very dystopian rather than reas-
                                                                                 suring. But what inspired me to think about is, can we do live
                                                                                 spending recognition? In other words, what we need to be doing
                                                                                 and what our organization is actually doing is using our data set.
                                                                                 We have the biggest data set of government’s spending ever assem-
                                                                                 bled.
                                                                                   To do AI, you need three things. You need big data, you need an
                                                                                 algorithm, and processing power. So, we’re actively working on
                                                                                 building tools that can do pattern recognition and then pattern pre-
                                                                                 diction. So, in a year or five years from now, we can run circles
                                                                                 around CBO and provide those tools to individual taxpayers and
                                                                                 make sure that that authority and that technology belongs with we
                                                                                 the people. That is achievable. And that’s what we’re working on
                                                                                 at Open the Books. Okay. Thank,
                                                                                   Senator HUSTED. Thank you for your time.




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                                                                                   CHAIR. Thank you, Senator Husted. I will now recognize Senator
                                                                                 Markey.




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                                                                                    Senator MARKEY. Yeah. Thank you, Madam Chair. And before I
                                                                                 begin my questions, I want to take note of who is here serving as
                                                                                 an expert on supposed fraud in the 8(a) program. I’ll let his words
                                                                                 behind me speak for themselves as to why he is unqualified to
                                                                                 speak on this program. Even Elon Musk suspended him from Twit-
                                                                                 ter for his extreme views. Mr. Rosiak’s history shows he starts with
                                                                                 a point of view, one which I find abhorrent, then spreads misin-
                                                                                 formation and conspiracy theories to support his views, and that is
                                                                                 not journalism.
                                                                                    For the past almost 50 years, the 8(a) Business Development
                                                                                 Program has broken down historical barriers that underserved
                                                                                 small business owners face when trying to contract with the federal
                                                                                 government. Decades of research backed by real stories of discrimi-
                                                                                 nation and statistical analysis, show that historical discrimination
                                                                                 has created an unequal playing field in government contracting. It
                                                                                 also shows that discrimination continues to this day working
                                                                                 against minority contractors.
                                                                                    Yet, programs like 8(a) are under an all-out attack from oppo-
                                                                                 nents within the government and outside the government who
                                                                                 claim the programs are ripe with fraud. While it is important to
                                                                                 root out instances of genuine fraud, these opponents aim to tear
                                                                                 down programs that address historical discrimination.
                                                                                    Mr. Hedtler-Gaudette, how do programs like 8(a) program, and
                                                                                 other small business contracting programs, help competition help
                                                                                 to ensure that in the federal contracting space that there is room
                                                                                 that is made for access for the groups that historically had been
                                                                                 left out?
                                                                                    Mr. HEDTLER-GAUDETTE. Thank you for the question, Senator.
                                                                                 Small businesses are, as everyone on this committee I think would
                                                                                 agree, the backbone of the American economy. However, they’re not
                                                                                 the backbone of the federal contracting system. And that is because
                                                                                 there are a handful of extraordinarily large, extraordinarily well
                                                                                 connected and powerful corporations who vacuum up the vast ma-
                                                                                 jority of federal contracting dollars. This is particularly true in the
                                                                                 defense industry space, but it’s true everywhere also.
                                                                                    So, SBA programs, and generally speaking, small business set
                                                                                 asides, are critical to trying to unlock the sort of stranglehold that
                                                                                 that small cadre of very large companies has on federal contracting
                                                                                 dollars. And when you expand and diversify and broaden the indus-
                                                                                 trial base, you make it healthier and more resilient. And then
                                                                                 when you have an eye toward broadening and diversifying even
                                                                                 within the small business contracting space and trying to make
                                                                                 sure that the playing field is the level for those who might want
                                                                                 to be in that space, you do an even better job of increasing the
                                                                                 health and the resiliency of the industrial base.
                                                                                    Senator MARKEY. Yeah. So, Mr. Hedtler-Gaudette, do you believe
                                                                                 small, disadvantaged businesses contracting programs make up for
                                                                                 make up the most fraud or waste in the federal government? Do
                                                                                 you believe they make up the most within just the federal con-
                                                                                 tracting space?
                                                                                    Mr. HEDTLER-GAUDETTE. And that’s a categorical no. No, it’s not
                                                                                 even close.




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                                                                                    Senator MARKEY. Do you believe the Trump administration’s ac-
                                                                                 tions towards 8(a) program are efficient or effective oversight?




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                                                                                    Mr. HEDTLER-GAUDETTE. I do not. I think if they cared deeply
                                                                                 about looking into 8(a) or any other program, they would have an
                                                                                 Inspector General do it because that’s who should be doing it. I also
                                                                                 think it’s a little bit too convenient that the program they’re tar-
                                                                                 geting happens to fall into a category of a sort of ideological or po-
                                                                                 litical viewpoint that they disagree with.
                                                                                    Senator MARKEY. Yeah. And they fired the best Inspector Gen-
                                                                                 eral in America in January who oversaw the SBA. They just fired
                                                                                 him. In June, the SBA announced the so-called audit of the 8(a)
                                                                                 program. And this month, SBA ordered all 8(a) firms to submit ex-
                                                                                 tensive documentation within 30 days over the holidays as a part
                                                                                 of their investigation. Oversight is important to make sure that
                                                                                 government programs are working properly, but I’m concerned that
                                                                                 the SBA’s investigation is politically motivated.
                                                                                    Dr. LaFountain, the GAO provides the standards for government
                                                                                 audits through what’s known as the Yellow Book. Can you tell us
                                                                                 how audits are done, and how your office typically conducts them?
                                                                                    Dr. LAFOUNTAIN. So, thank you for the question. I love to talk
                                                                                 about the Yellow Book. The Yellow Book is our nickname for the
                                                                                 Generally Accepted Government Auditing Standards, or GAGAS.
                                                                                 And this is a framework for conducting high quality audits with
                                                                                 competence, integrity, objectivity, and independence.
                                                                                    The Yellow Book is a big book, and it covers a lot of territory.
                                                                                 It explains the purpose of government auditing, which is to provide
                                                                                 objective analysis and information needed to improve government
                                                                                 performance and accountability. It includes standards for con-
                                                                                 ducting audits ethically, independently, and with sound profes-
                                                                                 sional judgment and other matters related to making sure we do
                                                                                 our work in a manner that’s transparent, independent, and ac-
                                                                                 countable throughout our auditing process.
                                                                                    Senator MARKEY. Yeah. Thank you. So, as I spoke about in my
                                                                                 opening statement, it is ironic that we’re here today to talk about
                                                                                 waste, fraud, and abuse, and are ignoring the elephant in the room.
                                                                                 President Trump’s supercharged pay-to-play system designed to
                                                                                 benefit his billionaire buddies and hurt small businesses.
                                                                                    Mr. Hedtler-Gaudette, as an expert in oversight, could you ex-
                                                                                 plain how President Trump is using the federal contracting system
                                                                                 to reward donors and political supporters?
                                                                                    Mr. HEDTLER-GAUDETTE. Sure. One especially brazen example of
                                                                                 this, and it’s been mentioned a couple times, but I think it’s worth
                                                                                 underscoring because of how conscious shocking it should be to ev-
                                                                                 erybody, is the East Wing Ballroom Project.
                                                                                    Recently a report came out from one of our colleague organiza-
                                                                                 tions, Public Citizen, that scanned all of the corporations and indi-
                                                                                 viduals who were donating to that vanity project. And it turned out
                                                                                 that a large number of them were big, prime contractors who, on
                                                                                 aggregate, held about $280 billion worth of federal contracts. I
                                                                                 think there’s a bit of a clear wink, nod, pay-to-play at the very
                                                                                 least, the appearance of such a relationship there.
                                                                                    Senator MARKEY. Yeah. And what effect do you see that pay-to-
                                                                                 play system having on small businesses?




DMWilson on DSK7X7S144PROD with HEARINGS
                                                                                    Mr. HEDTLER-GAUDETTE. I think the more the already well-con-
                                                                                 nected and the already powerful companies who receive contracts,




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                                                                                 the more they receive, the more you crowd out and close off oppor-
                                                                                 tunities for smaller businesses.
                                                                                    Senator MARKEY. And how does corruption or fraud in the 8(a)
                                                                                 program compare to what the administration is doing with its big
                                                                                 business contracting and backroom deals?
                                                                                    Mr. HEDTLER-GAUDETTE. I think in terms of scale and scope, it
                                                                                 doesn’t really compare at all.
                                                                                    Senator MARKEY. Yeah. Like an elephant to a mouse. Huh?
                                                                                    CHAIR. Thank you.
                                                                                    Senator MARKEY. So, yeah, we thank you. We thank you for your
                                                                                 great work on this. And I think you’ve helped to clarify what is
                                                                                 going on here today and how we still haven’t had hearing in any
                                                                                 one of the Republican-controlled committees on what the Trump
                                                                                 administration is doing to instill waste, fraud, and corruption into
                                                                                 the heart of the federal government. Thank you, Madam Chair.
                                                                                    CHAIR. Thank you. And Mr. Rosiak, because your name was
                                                                                 brought up, if you would like to respond, you may respond.
                                                                                    Mr. ROSIAK. I can’t see it, but if I could have a copy of that post-
                                                                                 er framed, if possible, that would be amazing. You mentioned the
                                                                                 prospect of a President giving contracts to his friends. I think that’s
                                                                                 of concern to all of us. The mechanism to do it is when we have
                                                                                 safeguards against.
                                                                                    But let’s say purely hypothetically speaking, President Trump
                                                                                 wanted to steer a contract to SpaceX or to somebody who donated
                                                                                 a bunch of money to him. He can’t do that under the competitive
                                                                                 bidding process. He needs a mechanism to do it. So, what could
                                                                                 happen is you have a low-level SpaceX employee, have his wife cre-
                                                                                 ate a women-owned small 8(a) firm, and they get the sole source
                                                                                 contract, and then they sub it out, of course, to the people that they
                                                                                 work with closely. And it’s easy for the government to do with a
                                                                                 wink and nod, or just read between the lines that this is going to
                                                                                 wind up with SpaceX.
                                                                                    So, that’s the concern here. Is that procurement is like water. It
                                                                                 follows the path of least resistance. And when you have a loophole
                                                                                 like this, it creates all those things that nobody supports.
                                                                                    So, the other thing is, it’s not that there’s a couple reasons that
                                                                                 8(a) is in the spotlight now, but one of it is the Supreme Court. So,
                                                                                 students for fair admissions, the big Supreme Court dealing with
                                                                                 race that showed that this program is illegal. There’s a court case
                                                                                 called Ultima that has subjected 8(a) to an injunction right now.
                                                                                 So, we can’t have a hearing about 8(a) and talk about, oh, Trump
                                                                                 is against DEI, whatever, without recognizing it’s literally under
                                                                                 injunction right now.
                                                                                    So, this committee is going to have to go back and revisit the leg-
                                                                                 islation. And the SBA is going to have to, as the terms of a legal
                                                                                 settlement or a final court order, do a rulemaking process. But
                                                                                 right now, the government cannot treat people differently based on
                                                                                 race. So, if you have a minority set aside program without the mi-
                                                                                 nority, you’re left with just a random set aside program, which is
                                                                                 just rife for all sorts of exploitation.
                                                                                    CHAIR. Thank you. I appreciate——
                                                                                    Senator MARKEY. Madam Chair.




DMWilson on DSK7X7S144PROD with HEARINGS
                                                                                    CHAIR. I’m on my five minutes of questioning.
                                                                                    Senator MARKEY. Well, you gave him more time——




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                                                                                    CHAIR. This is part of my questioning.
                                                                                    Senator MARKEY. Oh, what you mean is I get recognized again?
                                                                                    CHAIR. You’ll get recognized again, Ranking Member Markey.
                                                                                 Thank you. So, I just want to get this straight. So, we were talk-
                                                                                 ing—in Ranking Member Markey’s line of questioning. He said, you
                                                                                 know, the largest amount of fraud, waste, abuse is not in the Small
                                                                                 Business Administration and its programs, I might be para-
                                                                                 phrasing a little bit. This is, however, the Small Business Com-
                                                                                 mittee, and that’s what we are focusing on today.
                                                                                    So, Mr. Hedtler-Gaudette, you said that no, that doesn’t happen
                                                                                 the most in the 8(a) programs. However, I did annotate or go
                                                                                 through quite a few billions of dollars of fraud or waste that hap-
                                                                                 pened within the 8(a) program, the PPP, and the EIDL loan pro-
                                                                                 grams. So, you are not saying to this committee that we should not
                                                                                 go after people committing fraud in these small business programs
                                                                                 of which the small business committee has jurisdiction. Am I cor-
                                                                                 rect?
                                                                                    Mr. HEDTLER-GAUDETTE. Yes, absolutely, you should go after
                                                                                 fraud and waste wherever it exists. I think the point I was making
                                                                                 was more about sort of prioritization of resources than doing so.
                                                                                    CHAIR. Thank you for that clarification. And I would state as
                                                                                 well, I have focused on fraud, waste, and abuse for the past 11
                                                                                 years of my Senate career, regardless of what agency or what presi-
                                                                                 dent was at the helm. So, I think it’s fair to say that we fight for
                                                                                 American taxpayers, regardless of whether we have an -R, a -D, or
                                                                                 an -I behind our name. And that’s the purpose of today’s com-
                                                                                 mittee, is that we’re focusing on fraud that has cured with occurred
                                                                                 within these programs.
                                                                                    So, a question for the entire panel, just very quickly. Just last
                                                                                 week in my home state of Iowa, just to show I don’t pick on every-
                                                                                 body without recognizing issues in my own home state, there was
                                                                                 a former Cuban military sergeant who came to the U.S. illegally
                                                                                 after crossing the southern border and was sentenced to four years
                                                                                 in federal prison for his role in orchestrating a pandemic benefits
                                                                                 fraud conspiracy involving $2.4 million in fraudulently obtained
                                                                                 PPP loans. An illegal Cuban militant in Iowa applied for, and got,
                                                                                 $2.4 million in PPP loans.
                                                                                    Meanwhile, many of our Iowans were struggling to keep their
                                                                                 lights on during the COVID pandemic. So, because I only have 20
                                                                                 seconds left, we have a lot of egregious examples, but wouldn’t you
                                                                                 agree this is someone that should have been prosecuted? Mr.
                                                                                 Rosiak?
                                                                                    Mr. ROSIAK. Yes.
                                                                                    CHAIR. Mr. Hedtler-Gaudette?
                                                                                    Mr. HEDTLER-GAUDETTE. Yes.
                                                                                    CHAIR. Mr. Hart?
                                                                                    Mr. HART. Yes.
                                                                                    CHAIR. Ms. LaFountain?
                                                                                    Ms. LAFOUNTAIN. Based on our work, yes, it should be inves-
                                                                                 tigated.
                                                                                    CHAIR. Thank you. And I’ll recognize Ranking Member Markey
                                                                                 for a second round.




DMWilson on DSK7X7S144PROD with HEARINGS
                                                                                    Senator MARKEY. Well, thank you. And again, I wasn’t going to
                                                                                 put it in the record, but I will. You know, one of Mr. Rosiak’s




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                                                                                 tweets just says, ‘‘Turns out lots of DEI hires are both dumber and
                                                                                 vastly moral than their competent predecessors.’’ And I don’t think
                                                                                 that the evidence would actually bear that out. I just think that ba-
                                                                                 sically continues to reflect a preexisting bias.
                                                                                    So, Mr. Hart, in your testimony, you call for transparency sur-
                                                                                 rounding contracting. A recent study found that donors to the
                                                                                 President’s Ballroom Project have received $279 billion in federal
                                                                                 contracts over the last five years. Mr. Hart, do you think those do-
                                                                                 nors to the ballroom should have to disclose their names?
                                                                                    Mr. HART. Well, Mr. Markey, what I believe is that in our Con-
                                                                                 stitution, the Founders describe transparency not as a two-way
                                                                                 street, but a one race, one-way street. In other words, as taxpayers,
                                                                                 we have the right to inspect the government’s checkbook.
                                                                                    However, the government does not have the right to inspect our
                                                                                 checkbook. I think that’s the constitutional standard of trans-
                                                                                 parency. And when we conflate those two, we actually dilute the
                                                                                 meaning of transparency in the Constitution.
                                                                                    So, I’m an equal opportunity oversight person. I think we should
                                                                                 look at the spending of everything. But if we expand the aperture
                                                                                 of the hearing to look at ballroom spending, we should also look at
                                                                                 healthcare fraud. And the Peterson Foundation found that there’s
                                                                                 $925 billion in healthcare fraud. So, the other title of the hearing
                                                                                 could be the Opportunity Cost of Fraud for Small Business, which
                                                                                 is extreme all over the federal government, particularly in the
                                                                                 healthcare sector.
                                                                                    Senator MARKEY. No, thank you. And this year I have sent a
                                                                                 number of letters to the SBA asking about DOGE’s activities. And
                                                                                 I requested a meeting with DOGE in February that has yet to
                                                                                 occur. And I’ve asked for that meeting with DOGE and the SBA
                                                                                 led by the chair over, and over, and over again. We haven’t had it.
                                                                                 DOGE is in like a witness protection program. You know, we know
                                                                                 they’re someplace they’re inside of SBA.
                                                                                    And by the way, the same thing is true over the Environment
                                                                                 Committee. No hearings over at Labor. No hearings. No hearings,
                                                                                 no hearings. They’re inside, you know, but we don’t have any hear-
                                                                                 ings on it. And we know there’s a lot of waste, and fraud, and
                                                                                 abuse, corruption going on. We just aren’t going to have any hear-
                                                                                 ings on it. And I think we’re going to finish the whole term without
                                                                                 ever having had a hearing on DOGE inside of these federal agen-
                                                                                 cies.
                                                                                    And that’s a crime in and of itself. You know, that we’re not
                                                                                 going to look at that. It’s hiding in plain sight right in front of us.
                                                                                 DOGE inside of these agencies, what kind of self-serving activities
                                                                                 are they engaging in? Who are they helping by the decisions which
                                                                                 they are making? What’s going on? Well, we’re the committee of ju-
                                                                                 risdiction, and we haven’t had a hearing yet. We haven’t had a
                                                                                 joint investigation yet. We have done nothing, you know, to find
                                                                                 out what is going on.
                                                                                    So, what little we do know about DOGE’s dealings at SBA is
                                                                                 coming from the media rather than SBA’s responses to my Con-
                                                                                 gressional request. I made this request over, and over, and over




DMWilson on DSK7X7S144PROD with HEARINGS
                                                                                 again. And in rare cases, where I’ve received a response, there is
                                                                                 no helpful information, which we get. They write their answer es-




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                                                                                 sentially in invisible ink—they don’t provide the information which
                                                                                 the public, Mr. Hart, is entitled to the transparency.
                                                                                    It’s a one-way street. It’s coming out of the federal government
                                                                                 to the American people, then they can judge what’s going on.
                                                                                 They’re not going to provide that information. And it’s my under-
                                                                                 standing that GAO also has had some trouble getting Adminis-
                                                                                 trator Loeffler and her team to respond to requests for information
                                                                                 of that is necessary for your work.
                                                                                    And I’m very glad to hear that GAO was conducting a govern-
                                                                                 ment-wide review of the administration’s efforts to implement the
                                                                                 President’s executive orders, including how DOGE has been used
                                                                                 to access data and make policy decisions without any transparency.
                                                                                 Who are they helping? What businesses are they helping? What
                                                                                 friends of the President are they helping? We don’t know. And it’s
                                                                                 not just SBA, it’s every agency. It’s the entire federal government.
                                                                                    So, Dr. LaFountain, is GAO looking to see how DOGE complied
                                                                                 with privacy and information law?
                                                                                    Dr. LAFOUNTAIN, Yes. We have a body of work, at least eight en-
                                                                                 gagements, ongoing on issues related to DOGE. And we do have
                                                                                 one engagement on DOGE and data protections that is looking at
                                                                                 compliance with privacy and information law.
                                                                                    Senator MARKEY. Okay. So, again, I reiterate to you, Madam
                                                                                 Chair, I request that this committee hold a hearing on GAO’s find-
                                                                                 ings about DOGE, specifically about their compliance with data
                                                                                 and information security laws. This would be especially helpful
                                                                                 since we never heard from DOGE, despite our efforts to get them
                                                                                 to brief our committee. And I make that again, as a special request
                                                                                 to you. I think the American public is waiting for the answers to
                                                                                 the questions they are asking about what’s going on inside of the
                                                                                 SBA.
                                                                                    CHAIR. Yes, and thank you. And DOGE does happen to be the
                                                                                 Democrat’s favorite boogeyman out there. And I do want to be clear
                                                                                 that under this administration, we are finally reining in govern-
                                                                                 ment spending and rooting out waste, fraud, and abuse.
                                                                                    So, during the pandemic and under the Biden Administration,
                                                                                 SBA loans were given out like candy. Let’s not forget that individ-
                                                                                 uals who used Barbie dolls as their photo identification were ap-
                                                                                 proved for SBA loans. This is totally unacceptable. In March, it was
                                                                                 announced that, due to DOGE’s hard work in this area, they have
                                                                                 uncovered more than 5,000 SBA loans equivalent to millions of dol-
                                                                                 lars where the listed borrower was 11 years old or younger.
                                                                                    Again, DOGE is the Democrat’s favorite boogeyman. If updating
                                                                                 outdated systems and saving taxpayers time and money scares
                                                                                 them, that says more about their priorities than ours. Are my
                                                                                 Democratic colleagues saying that we should be ignoring billions of
                                                                                 dollars of waste, fraud, and abuse because we’re focusing only on
                                                                                 SBA today and not the entire federal government?
                                                                                    The Biden administration tried to sweep this problem under the
                                                                                 rug. We aren’t doing that. In fact, we are going to do everything
                                                                                 we can to stop it from happening again and recollect every penny
                                                                                 that was stolen or misspent. As Chair of the Senate DOGE Caucus,
                                                                                 I agree with the aim of DOGE, which is to ensure that taxpayer




DMWilson on DSK7X7S144PROD with HEARINGS
                                                                                 dollars are being used effectively and that waste, fraud, and abuse
                                                                                 in the federal government is rooted out.




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                                                                                    And this demonstrates why, to truly create change within the
                                                                                 federal government, DOGE has been given access to many federal
                                                                                 agencies and department systems, which has allowed them to cut
                                                                                 through longstanding hurdles to find waste within each govern-
                                                                                 ment entity. And all Americans should know that DOGE employees
                                                                                 are federal employees. They are federal employees, subject to the
                                                                                 same background checks, privacy laws, and restrictions regarding
                                                                                 data sharing as any other federal employee.
                                                                                    So, if we want to discuss hypotheticals and leaked data, what-
                                                                                 ever might be out there, let’s talk about real leaks and failures,
                                                                                 starting with how a former IRS contractor leaked the private data
                                                                                 of more than 400,000 taxpayers, including President Trump’s.
                                                                                    Additionally, I’ve heard my colleagues question if DOGE has
                                                                                 saved money, and the answer is a resounding yes, and it’s trans-
                                                                                 parently listed on their website. DOGE is working to generate real
                                                                                 savings and estimates that it has saved about $214 billion so far.
                                                                                    DOGE is saving Americans money at across the federal bureauc-
                                                                                 racy. The Department of Veterans Affairs was paying $56,000 to
                                                                                 water eight plants. Yes, eight household plants for five years.
                                                                                 $56,000. I would’ve loved to have had that contract. Thanks to
                                                                                 DOGE, this contract was canceled, and those plants will be wa-
                                                                                 tered for free.
                                                                                    So, while DOGE keeps delivering more savings every day, Demo-
                                                                                 crats are more upset by the effort to stop wasteful spending than
                                                                                 by the misuse of Americans taxpayer dollars. As I’ve always said,
                                                                                 if you can’t find waste in Washington, D.C., there can only be one
                                                                                 reason: you are not looking. Shouldn’t we be pulling the plug on
                                                                                 government waste instead of those who are finding it?
                                                                                    I have one minute left. And I will go to Mr. Hart talking about
                                                                                 waste. I gave the egregious example of a Cuban illegal migrant mil-
                                                                                 itant who scammed the federal government for $2.4 million. Can
                                                                                 you provide any other egregious examples of where there has been
                                                                                 scams in the federal government?
                                                                                    Mr. HART. Well, Senator, unfortunately, I think one example we
                                                                                 haven’t touched on is that in Atlanta. There was a mail carrier who
                                                                                 stole paycheck protection program checks from people’s mailboxes
                                                                                 along as routes and used it to provide personal clothing, personal
                                                                                 expenses for himself.
                                                                                    And we have to ask why did that happen? And I believe it hap-
                                                                                 pens because when government gets in the business of deciding it
                                                                                 can pick winners and losers, what it ends up doing is punishing the
                                                                                 winners and rewarding the losers. And maybe instead of having a
                                                                                 federal Small Business Administration, we should return business
                                                                                 to business and business to the states and let them navigate the
                                                                                 questions, the economics of it.
                                                                                    CHAIR. And that is pretty profound. So, thank you for that. I
                                                                                 would also like to make sure the Ranking Member is aware that
                                                                                 on October 30th, I requested the SBA Inspector General to do an
                                                                                 audit of the 8(a) program. So, I ask unanimous consent that my let-
                                                                                 ter be entered into the record. And without objection, so ordered.
                                                                                    You want another round——
                                                                                    Senator MARKEY. Yes, please.




DMWilson on DSK7X7S144PROD with HEARINGS
                                                                                    CHAIR [continuing]. Ranking Member.
                                                                                    Senator MARKEY. Yes.




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                                                                                    CHAIR. You’re recognized for five minutes.
                                                                                    Senator MARKEY. Yeah. I would love to see the DOGE represent-
                                                                                 ative from SBA sitting here at a witness table under oath. Love to
                                                                                 see who that is. I think you and I right now would have about a
                                                                                 50 percent chance of picking that person out of a two-person line-
                                                                                 up. We have no idea who it is. We have no idea what their name
                                                                                 is. We don’t even know who they are, and we’re supposed to take
                                                                                 their word for it. We don’t even know their name.
                                                                                    How in the world can we give any respect to people who are too
                                                                                 afraid to have us know their names, too afraid to appear before
                                                                                 this committee? You know, they beg to be put in a witness protec-
                                                                                 tion program so that they can hide out, you know, from any scru-
                                                                                 tiny from the public. And yet, we’re supposed to respect the num-
                                                                                 bers which they’ve given us and we don’t even respect them. We
                                                                                 don’t even know who they are.
                                                                                    You know, this is like anonymity. This is like Soviet Russia. This
                                                                                 is like the deepest, darkest Kafkaesque-kind of a proceeding that
                                                                                 we’re operating on that we don’t have any information to give any
                                                                                 kind of respect to any number, which again, although I do know
                                                                                 one thing that the biggest part of the COVID fraud occurred in
                                                                                 2020 when Trump was President, although we’re not going to hear
                                                                                 that from—is that not correct from the GAO? Is that not an early
                                                                                 conclusion that you’ve reached?
                                                                                    Dr. LAFOUNTAIN. So, we did find that PPP and COVID Idle were
                                                                                 both more vulnerable to fraud early in the program. But I checked
                                                                                 with our experts, and we don’t have estimates that kind of break
                                                                                 it down from one year to the next.
                                                                                    Senator MARKEY. No, I get it. Very vulnerable to fraud during
                                                                                 the Trump administration. And you know, but we’re not going to
                                                                                 have a hearing on that, that’s for sure. That’s not going to happen
                                                                                 either. We’re putting Trump into a witness protection program as
                                                                                 well. And anyone who represents him and who would’ve had a re-
                                                                                 sponsibility for any of that.
                                                                                    But we’re not beyond like taking Black and Brown citizens who
                                                                                 have small businesses and somehow rather being able to smear
                                                                                 them. When the vast amount of all of the fraud, the elephants still
                                                                                 isn’t willing to come in here and to sit down. So, you know, maybe
                                                                                 we could let them come in, like they were ICE agents and just put
                                                                                 bags over their head. You know, maybe they could wear masks so
                                                                                 we wouldn’t identify them. You know, maybe we could just have
                                                                                 them sit out there and maybe mumble through their masks what,
                                                                                 what they found.
                                                                                    But we could at least cross-examine them. You know, we got to
                                                                                 at least hold them to an oath. But if they’re afraid to be recognized
                                                                                 the way ICE agents are maybe, you know, and that’s kind of a
                                                                                 characteristic of the Trump administration. People want to put on
                                                                                 their mask almost like they are in fact engaging in criminal behav-
                                                                                 ior. They are engaging in behavior which is unconstitutional, ab-
                                                                                 horrent to the rule of law in our nation that abhorrent to the due
                                                                                 process protections, which all of these people who are in all of these
                                                                                 programs are, are entitled to.
                                                                                    So, that’s pretty much my take on this. You know, unless, and




DMWilson on DSK7X7S144PROD with HEARINGS
                                                                                 until we have these people in here and testifying, we don’t owe
                                                                                 them any honest respect at all, any numbers, any representations,




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                                                                                                                                 69

                                                                                 which they are making. And it is the GAO, it is the Inspector Gen-
                                                                                 erals who have to conduct the proper independent oversight of fed-
                                                                                 eral programs.
                                                                                    And unfortunately, this is not a hearing focused upon finding bi-
                                                                                 partisan solutions to problems that are relative. That’s what I
                                                                                 would like to do, rather than turning this into a star chamber, you
                                                                                 know, into a Kafka’s Trial where it’s impossible for us to actually
                                                                                 get to the accusers who are inside of DOGE and sending out infor-
                                                                                 mation, but without any ability to cross examine them.
                                                                                    So, we should be having real oversight hearings, Madam Chair.
                                                                                 We should be calling on the administration to make sure that SBA
                                                                                 programs are running the way they are supposed to. We should be
                                                                                 collaborating with the SBA Inspector General, with the GAO, so
                                                                                 that we can get to the bottom of what’s going on right now. Con-
                                                                                 gressional oversight is critical. It’s absolutely essential. And we
                                                                                 can’t do it if we don’t have the facts. We can’t do it if we can’t get
                                                                                 the information.
                                                                                    Otherwise, it just turns into political targeting of programs and
                                                                                 individuals who have invoked the political ire of particular seg-
                                                                                 ments of the Trump empire. And that’s just not real oversight. And
                                                                                 as members of this committee, we should do everything we can to
                                                                                 uplift small businesses. That’s not what this hearing is all about.
                                                                                 It’s stigmatizing those who are already most vulnerable historically
                                                                                 in terms of the durability.
                                                                                    So, again, we’re ignoring the elephant in the room, and we know
                                                                                 it’s the Trump administration officials who are inside all of these
                                                                                 agencies. Until we get to that GOP elephant, we’re not having real
                                                                                 hearings. We’re not doing real oversight. We’re just allowing for the
                                                                                 demonization of those who have always historically been most vul-
                                                                                 nerable. Thank you, Madam Chair.
                                                                                    CHAIR. Thank you. And with that, we will go ahead and wrap the
                                                                                 committee. I will take a little bit of issue in describing the United
                                                                                 States of America as Soviet Russia. Those of us that served in uni-
                                                                                 form for this great nation feel otherwise. So, I just wanted to make
                                                                                 that very clear that I’m proud of my country, regardless of who is
                                                                                 at the helm, because our country is made of incredible men and
                                                                                 women from all walks of life.
                                                                                    So, if there are no further questions, I want to thank our wit-
                                                                                 nesses for being with us today. I ask unanimous consent that the
                                                                                 record of today’s hearing remain open for two weeks for members
                                                                                 to submit questions, revise and extend their remarks, and submit
                                                                                 additional information into the record. And without objection, so or-
                                                                                 dered.
                                                                                    With that, the Committee on Small Business and Entrepreneur-
                                                                                 ship stands adjourned.
                                                                                    [Whereupon, at 3:55 p.m., the hearing was adjourned.]




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                                                                                                                                 123




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 170 here 62296A.096


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00127   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 124




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 171 here 62296A.097


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00128   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 125




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 172 here 62296A.098


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00129   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 126




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 173 here 62296A.099


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00130   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 127




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 174 here 62296A.100


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00131   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 128




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 175 here 62296A.101


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00132   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 129




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 176 here 62296A.102


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00133   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 130




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 177 here 62296A.103


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00134   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 131




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 178 here 62296A.104


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00135   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 132




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 179 here 62296A.105


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00136   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 133




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 180 here 62296A.106


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00137   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 134




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 181 here 62296A.107


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00138   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 135




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 182 here 62296A.108


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00139   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 136




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 183 here 62296A.109


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00140   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 137




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 184 here 62296A.110


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00141   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 138




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 185 here 62296A.111


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00142   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 139




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 186 here 62296A.112


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00143   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 140




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 187 here 62296A.113


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00144   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 141




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 188 here 62296A.114


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00145   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 142




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 189 here 62296A.115


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00146   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 143




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 190 here 62296A.116


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00147   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 144




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 191 here 62296A.117


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00148   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 145




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 192 here 62296A.118


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00149   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 146




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 193 here 62296A.119


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00150   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 147




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 194 here 62296A.120


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00151   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 148




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 195 here 62296A.121


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00152   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 149




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 196 here 62296A.122


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00153   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 150




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 197 here 62296A.123


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00154   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 151




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 198 here 62296A.124


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00155   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 152




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 199 here 62296A.125


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00156   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 153




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 200 here 62296A.126


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00157   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 154




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 201 here 62296A.127


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00158   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 155




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 202 here 62296A.128


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00159   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 156




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 203 here 62296A.129


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00160   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 157




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 204 here 62296A.130


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00161   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 158




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 205 here 62296A.131


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00162   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 159




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 206 here 62296A.132


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00163   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 160




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 207 here 62296A.133


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00164   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 161




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 208 here 62296A.134


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00165   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 162




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 209 here 62296A.135


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00166   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 163




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 210 here 62296A.136


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00167   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 164




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 211 here 62296A.137


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00168   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 165




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 212 here 62296A.138


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00169   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 166




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 213 here 62296A.139


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00170   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 167




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 214 here 62296A.140


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00171   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 168




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 215 here 62296A.141


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00172   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 169




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 216 here 62296A.142


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00173   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 170




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 217 here 62296A.143


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00174   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 171




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 218 here 62296A.144


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00175   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 172




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 219 here 62296A.145


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00176   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 173




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 220 here 62296A.146


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00177   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 174




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 221 here 62296A.147


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00178   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 175




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 222 here 62296A.148


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00179   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 176




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 223 here 62296A.149


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00180   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 177




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 224 here 62296A.150


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00181   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296
                                                                                                                                 178




DMWilson on DSK7X7S144PROD with HEARINGS

                                                                                                                                                                            Insert offset folio 225 here 62296A.151


                                           VerDate Sep 11 2014   22:20 Aug 10, 2026   Jkt 062296   PO 00000   Frm 00182   Fmt 6633   Sfmt 6602   E:\HR\OC\A296.XXX   A296


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