Congressional Testimony
Here's a look at documents involving congressional testimony and member statements
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Leaf Street Strategies Founder Klimas Testifies Before Senate Banking, Housing & Urban Affairs Subcommittee
WASHINGTON, Dec. 31 -- The Senate Banking, Housing and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection released the following testimony by Klimas, founder of Leaf Street Strategies and president of the Cannabis Regulators Association, from a Dec. 16, 2025, hearing entitled "Ensuring Fair Access to Banking: Policy Levers and Legislative Solutions":* * *
Chairman Tillis, Ranking Member Cortez Masto, and members of the committee. My name is Tyler Klimas, and I appreciate the opportunity to testify today on the issue of fair access to banking. I am the Founder of Leaf ... Show Full Article WASHINGTON, Dec. 31 -- The Senate Banking, Housing and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection released the following testimony by Klimas, founder of Leaf Street Strategies and president of the Cannabis Regulators Association, from a Dec. 16, 2025, hearing entitled "Ensuring Fair Access to Banking: Policy Levers and Legislative Solutions": * * * Chairman Tillis, Ranking Member Cortez Masto, and members of the committee. My name is Tyler Klimas, and I appreciate the opportunity to testify today on the issue of fair access to banking. I am the Founder of LeafStreet Strategies, a consulting and regulatory affairs firm specializing in cannabis policy. I previously served as chief regulator of Nevada's medical and adult-use cannabis industry and co-founded and served as president of the Cannabis Regulators Association, a nonprofit organization representing cannabis regulators across the U.S., Canada, and Europe.
Because this hearing is about ensuring fair access to banking, I believe no discussion of this issue is complete without addressing the challenges facing the cannabis industry and the role policy solutions like the SAFER Banking Act can play in addressing them. As Nevada's former chief regulator overseeing a billion-dollar retail market, my job was to implement compliance programs designed to prevent diversion, ensure product safety, and protect public trust and confidence through transparency across the industry. Each of those responsibilities was made more difficult by the lack of access to traditional banking services.
Today, 40 states and territories have developed regulated cannabis markets, supporting hundreds of thousands of jobs and generating billions in state tax revenue. Yet many of these state-legal businesses continue to struggle to access basic financial services. As a result, they remain cashintensive, creating a significant public safety risk and an economic burden on small and mediumsized businesses that already operate on thin margins.
The SAFER Banking Act would provide the certainty financial institutions need to serve this growing industry, while also making communities safer and improving transparency and accountability in the marketplace.
I. Current State of the Legal Cannabis Industry and Banking Access
More than half of Americans now live in a state where adult-use cannabis is legal, and the industry is projected to generate over $44 billion/1 in revenue in 2025. Despite this growth, banks and other financial institutions remain reluctant to serve cannabis businesses due to ongoing regulatory uncertainty. While some banks and local credit unions do service legal cannabis businesses, the universe is small. According to FinCEN Data from the fourth quarter of 2024 (the most recent year data is available), only 507 banks, 182 credit unions, and 127 non-depository institutions filed Marijuana Priority or Marijuana Limited Suspicious Activity Reports under the 2014 FinCEN Guidance on Marijuana Banking./2
For comparison, there are more than 4,300 FDIC-insured banks/3 and over 4,300 federally insured credit unions nationwide./4 Even when financial institutions do enter the space, they take on risk due to that uncertainty, risk that results in high administrative and compliance costs. These costs are then passed on to cannabis businesses in the form of high fees. And for the cannabis businesses that do find banking partners, many must look outside of their state to do so. In many cases, the full suite of banking services a normal business would expect, like lending and credit products, are unavailable to cannabis banking customers, despite the high cost of fees.
These challenges are not limited to cannabis operators alone. Businesses that support or engage with the cannabis industry, like industrial suppliers, agriculture vendors, commercial and industrial real estate firms, and even automotive dealers, fall victim to many of the same banking challenges because of their association with cannabis.
Employees of these cannabis businesses are also impacted. Workers have reported challenges in obtaining home or auto loans, and have had personal accounts closed. In Nevada, the state's leading cannabis advocacy organization is on its third bank account in five years.
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1 https://mjbizdaily.com/us-cannabis-sales-estimates/
2 https://www.fincen.gov/frequently-requested-foia-processed-records
3 https://www.fdic.gov
4 https://ncua.gov/files/publications/analysis/quarterly-data-summary-2025-Q3.pdf
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Even state governments have challenges with banking if they are one of 40 states that have a cannabis program. In Nevada, our regulation of cannabis risked disrupting the state's entire relationship with its banking partner, forcing us to spend countless hours to find creative workarounds and issue guidance to the industry on what language to avoid putting on payment notices. Instances like these are common in other states.
For example, West Virginia has encountered delays in accessing $34 million dollars in state tax revenue because of banking issues./5
In Maryland, they were met with similar challenges, and had to classify all transactions related to their adult-use marijuana program as "A Sale Subject to the 9% Rate under Senate Bill 516 of 2023"/6
II. Impact on State Regulators and Regulatory Bodies
Without greater engagement by financial institutions, we are also left with a growing lack of insight and transparency into licensed operators in state markets. This, too, directly impacts public safety. In Nevada, we drew from our world-renowned gaming regulatory model, to implement one of the nation's most comprehensive cannabis investigations divisions. We understood the importance not only of compliance, but of understanding exactly who was operating in our state industry and ultimately who was profiting from it.
While states enjoy incredible insight into supply chains through mandatory tracking systems, reconciling that information with the financials of companies that have difficulty maintaining banking relationships, or deal mainly in cash, makes that job extremely difficult. As a result, this creates opportunity for bad actors to exploit the lack of transparency and challenges in oversight, simply because we have yet to fill this policy gap.
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5 https://mountainstatespotlight.org/2025/10/22/34-million-cannabis-fund-unspent/
6 https://marylandmatters.org/2023/08/19/more-notes-from-maco-politicians-who-write-a-weed-by-any-other-nameai-ay-yi-yi-moco-term-limits-and-a-new-oc-attraction/
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I understand the desire to put effort behind a more comprehensive federal regulatory framework for cannabis. That is a goal shared with most in this industry. But each day we wait on commonsense measures like the SAFER Banking Act, we're hurting businesses, creating obstacles for employees trying to earn a living, and providing cover for bad actors to persist.
Furthermore, Congress's recent change to the definition of hemp puts even greater pressure and urgency on the need for legislation like the SAFER Banking Act. There are thousands of hemp companies that will be thrown into the same turmoil next November when the change in definition goes into effect.
III. Impact on Small and Medium-Sized Businesses and Reducing the Illicit Market When small and medium-sized businesses are forced to operate predominately in cash, public safety risks increase. Robberies and break-ins are frequent occurrences at cannabis dispensaries nationwide,/7 and due to conflicts in federal and state law, insurance providers are typically unwilling to work with cannabis businesses to help recover losses in the event of a burglary.
In Nevada, we dealt frequently with robberies of delivery drivers, an easy target given the cash payments upon delivery.
Creating a level playing field and ensuring fair access to normalized banking services allows legal cannabis businesses to realize cost savings and efficiencies just like any other business. In cannabis, cost savings and efficiencies for operators allows them to be more competitive in pricing, a key component in addressing the illicit market. As long as illicit market operators are able to exploit the unnecessary difficulties that legal operators face, we will continue to see unsafe and untested product available to consumers, and a significant loss of tax revenue to states and the federal government.
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7 See e.g., https://www.heraldnews.com/story/news/crime/2024/05/09/three-charged-with-heist-of-436000-inmarijuana-shop-profits/73631599007/
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IV. Rescheduling
The Trump Administration has signaled that cannabis may be rescheduled to Schedule III/8 under the Controlled Substances Act. While this represents a monumental recognition of the medical benefits of cannabis and an opening of pathways to more research and better public health policy, rescheduling alone does not alleviate the current banking challenges nor does it have any impact on safe harbor for financial institutions.
Congressional action is still needed, perhaps now more than ever.
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Conclusion
To conclude, allowing clear and certain access to the financial system for state-legal cannabis businesses does not amount to the federal legalization of cannabis. Legislation like the SAFER Banking Act enhances and strengthens regulatory oversight and allows financial institutions to rightfully serve businesses in their communities without unnecessary fear or uncertainty.
Thank you again for the opportunity to testify today.
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8 https://www.washingtonpost.com/business/2025/12/11/trump-marijuana-reclassification-executive-order/
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Original text here: https://www.banking.senate.gov/imo/media/doc/klimas_testimony_12-16-25.pdf
House Science, Space & Technology Subcommittee Chairman McCormick Issues Opening Statement at Hearing on Research Security
WASHINGTON, Dec. 31 -- Rep. Rich McCormick, R-Georgia, chairman of the House Science, Space and Technology Subcommittee on Investigations and Oversight, released the following opening statement from a Dec. 18, 2025, hearing entitled "Research Security: Examining the Implementation of the CHIPS and Science Act and NSPM-33":* * *
Today's hearing examines an issue that should transcend party lines: protecting America's research enterprise from foreign adversaries who seek to steal, exploit, or undermine the innovations that keep our nation secure and competitive.
For decades, the openness of the ... Show Full Article WASHINGTON, Dec. 31 -- Rep. Rich McCormick, R-Georgia, chairman of the House Science, Space and Technology Subcommittee on Investigations and Oversight, released the following opening statement from a Dec. 18, 2025, hearing entitled "Research Security: Examining the Implementation of the CHIPS and Science Act and NSPM-33": * * * Today's hearing examines an issue that should transcend party lines: protecting America's research enterprise from foreign adversaries who seek to steal, exploit, or undermine the innovations that keep our nation secure and competitive. For decades, the openness of theU.S. research system has been one of our greatest strengths. But in an era of intensifying global competition--especially from the Chinese Communist Party (CCP)--that openness has also become a target. The United States invests billions of taxpayer dollars every year in cutting-edge research. Those investments support our economy, drive technological breakthroughs, and underpin our national defense. They must be protected.
Recognizing these growing threats, the first Trump Administration took critical steps to safeguard research from foreign espionage and undue influence. The National Security Presidential Memorandum 33 on National Security Strategy for United States Government-Supported Research and Development or NSPM-33, issued in January 2021, ordered the federal government to establish a unified national strategy to secure U.S. research and development. It was the first comprehensive policy aimed at closing the gaps that foreign actors have exploited for years. The CHIPS and Science Act, passed in 2022, furthered this mandate with additional provisions for agencies and institutions to follow.
Unfortunately, despite these clear directives, implementation has been slow. Guidance was delayed, requirements were left ambiguous, and research institutions were forced to navigate compliance largely on their own. As a result, the burden fell to the current Administration to rapidly implement strict guidance --placing pressure on agencies, universities, and laboratories that should have received clarity much earlier.
In the past year, we have finally seen progress. The National Science Foundation issued updated research security guidance in July that took effect this October. These policies now require institutions to establish formal research security programs, conduct research security assessments, maintain documentation of foreign affiliations, and implement training for all personnel supported by federal research grants.
But there is still much work ahead.
This Committee has repeatedly heard from universities and research organizations that federal guidance remains confusing, inconsistent, or incomplete. And we know from documented cases that these threats are not theoretical. They are real, they are ongoing, and they demand a coordinated national response.
To be clear, the CCP is not our only concern. Other malign foreign actors are also seeking to exploit gaps in our research security framework. That is why implementation of these directives must be thorough, timely, and unambiguous, making today's discussion all the more important.
American science has long benefited from global engagement, but that engagement must be reciprocal. Every federally funded institution--large or small, public or private--must follow the law, disclose foreign affiliations, manage conflicts of interest and conflicts of commitment, and protect its data and infrastructure from theft or manipulation.
Congress has a responsibility to ensure that federal agencies enforce these requirements and that institutions receiving taxpayer dollars meet them. These requirements are a starting point. Many institutions may require more robust protections given the nature of the work they conduct. Oversight is not optional; it is essential. The integrity of our research enterprise--and our national security--depends on it.
Today, we will evaluate the progress made in implementing NSPM-33 and the CHIPS and Science Act, identify the barriers that still impede compliance, and determine whether additional legislative or regulatory action is needed. Our objective is clear: to ensure that America's research remains secure, competitive, and worthy of the trust the American people place in it.
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Original text here: https://republicans-science.house.gov/2025/12/opening-statement-of-chairman-rich-mccormick-at
Federal Aviation Administrator Bedford Testifies Before Senate Commerce, Science & Transportation Subcommittee
WASHINGTON, Dec. 31 -- The Senate Commerce, Science and Transportation Subcommittee on Aviation, Space and Innovation released the following testimony by Federal Aviation Administrator Bryan Bedford from a Dec. 17, 2025, hearing entitled "FAA's Plan for ATC Modernization: Evaluating Progress, Ensuring Accountability and Results." ATC stands for air traffic control.* * *
Chairman Moran, Ranking Member Duckworth, and Members of the Subcommittee, thank you for the opportunity to appear before you today. This is my first appearance before you as Administrator of the Federal Aviation Administration, ... Show Full Article WASHINGTON, Dec. 31 -- The Senate Commerce, Science and Transportation Subcommittee on Aviation, Space and Innovation released the following testimony by Federal Aviation Administrator Bryan Bedford from a Dec. 17, 2025, hearing entitled "FAA's Plan for ATC Modernization: Evaluating Progress, Ensuring Accountability and Results." ATC stands for air traffic control. * * * Chairman Moran, Ranking Member Duckworth, and Members of the Subcommittee, thank you for the opportunity to appear before you today. This is my first appearance before you as Administrator of the Federal Aviation Administration,and I am grateful for the opportunity to discuss the FAA's work to strengthen aviation safety, modernize our air traffic control system, and prepare the FAA for the challenges and opportunities ahead. It is a tremendous honor to serve in this role, and I remain committed to fulfilling its responsibilities to the best of my ability.
I want to start by acknowledging the tragic accident involving Flight 5342 at Ronald Reagan Washington National Airport (DCA) earlier this year. It remains at the forefront of my mind in the work that I do. It is a sobering reminder of why the FAA exists and was ultimately the reason why I accepted the call from President Trump and Secretary Duffy to take this job. Our mission is to ensure safety for pilots, flight attendants, crew and the traveling public, and we must always confront risks with urgency, transparency, and action. But to do that, we need to vigilantly and diligently identify potential risks in our National Airspace System.
As you know, immediately after the accident, the FAA changed operations in the National Capital Region--permanently restricting non-essential helicopter operations, closing certain helicopter routes, eliminating visual separation approaches, and requiring aircraft to broadcast ADS-B Out signals, with very limited exceptions. We also initiated our review of airport "hot spots" across the country where mixed traffic environments may create elevated risk. These assessments revealed operational patterns in several locations that needed attention, and we are diligently working to address them.
We continue to work closely with the National Transportation Safety Board on its ongoing investigations, including its investigation of the recent accident involving UPS Flight 2976.
These tragedies underscore that safety requires constant vigilance and a willingness to examine our processes, assumptions, and historic certification structures. I appreciate this Committee's work to support us in addressing these matters.
At the same time, we continue to maintain our oversight of aerospace manufacturers, including Boeing, and how the company manages design, manufacturing, and quality across its programs.
We also continue to keep a close watch on the production system itself. As a process-driven leader, I know that disciplined, well-designed processes consistently result in strong and predictable outcomes. I have confidence in our oversight of Boeing processes and in the FAA team leading this important work.
The recent shutdown demonstrated clearly how essential the FAA's safety mission is to the country. Aviation drives over five percent of our national economy, supports millions of jobs, and moves people and goods that keep communities and industries connected and functioning. The safe and efficient operation of the National Airspace System relies on a well-staffed, well-trained FAA workforce.
Our employees--air traffic controllers, safety inspectors, engineers, technicians, and many others--showed extraordinary dedication during the 43-day lapse in appropriations. Many worked without pay. Yet even under these circumstances, many continued to uphold the highest standards of professionalism and showed up to work.
At the same time, it is important to recognize that we entered the funding lapse already below the staffing levels needed for the reliable operation of our air traffic control facilities, intensifying the government shutdown's impact. And as the shutdown progressed, our operational monitoring tools signaled growing strain.
The FAA observes staffing triggers on a near daily basis throughout the year, responding with established procedures, such as reducing traffic when necessary, increasing miles-in-trail separation standards, implementing ground delay programs, or executing ground stops, as appropriate. During the shutdown, however, staffing triggers at key facilities spiked to unprecedented levels--jumping from single digits to a peak of over 80 in a single day on November 8. Those metrics are indicators of controller workload and system stress. Reflecting on lessons learned from the DCA accident we were proactive--closely monitoring trends, anticipating stress points, and preparing mitigation measures before conditions became acute.
Accordingly, we temporarily reduced flight operations at 40 major airports.
As the situation unfolded, we were able to actively investigate emerging constraints, assess risks in near real time, and implement measures in an orderly manner to relieve some of the pressure on our controllers and maintain safe operations. The direct correlation between controller strain, system capacity, and risk reinforced that the FAA must act urgently and decisively when the data calls for it. It also underscored the importance of maintaining consistent, long-term funding for the agency.
Strengthening the workforce remains central to our path forward. Under Secretary Duffy's leadership, the FAA supercharged air traffic controller hiring. We met our FY25 hiring goal with 2,026 new controllers, and we are on track to hire at least 8,900 controllers through 2028. We have increased training throughput by expanding the Enhanced Air Traffic -Collegiate Training Initiative program to 9 additional institutions. And on the safety oversight side, we have expanded hiring for inspectors and engineers using on-the-spot hiring authority, relocation incentives, and strategic placement in critical locations. Across all of these efforts, our focus remains on attracting, developing, and retaining the best and brightest talent.
As we look ahead, it is clear that the FAA must continue to innovate and evolve. The aviation ecosystem is changing rapidly--unmanned aircraft, advanced air mobility, more commercial space launches, and renewed interest in supersonic flight all demand a regulatory framework that can keep pace with innovation while maintaining the highest safety standards. President Trump's recent executive orders reinforce the need for continued modernization and innovation across the agency.
Congress provided a strong foundation for this work through the FAA Reauthorization Act of 2024, and we remain committed to its implementation. The Act directs us to improve regulatory agility, integrate new entrants more efficiently, and strengthen internal coordination. Our implementation of these reforms is informed, in part, by lessons learned from the DCA accident and the need for clearer accountability and streamlined processes.
In that same spirit, the FAA is implementing a single, agency-wide Safety Management System (SMS). This unified approach will help the FAA detect, analyze, and mitigate risk more consistently and ensure that lessons from accidents, incidents, and near misses are acted upon quickly and across the agency.
The National Airspace System itself must also be renewed. The existing systems--radar, communications networks, software systems--are decades old. President Trump presented a bold vision for a brand-new air traffic control system within the next three years and our work to do that is already underway. Our controllers deserve a system they can rely on and that matches the complexity of today's airspace and the future of the National Airspace System.
We have selected an Integrator who will oversee this transformational work. At the same time, we are making advancements in our modernization efforts. We have taken the FAA's 15-year radar modernization roadmap and compressed it into a three-year timeline, establishing an accelerated implementation cadence that is already in motion. We have transitioned over onethird of our copper wire to fiber, and have begun modernizing radios, upgrading voice switches, and improving digital communications, among other critical improvements. These improvements will enable the Integrator to hit the ground running to create a more reliable, resilient infrastructure and serve as the foundation for the future National Airspace System.
The One Big Beautiful Bill provides a historic $12.5 billion down payment to support this modernization effort. That funding will help us move faster and smarter, while also strengthening core infrastructure, and deliver on President Trump's bold vision for the future of American aviation. But the work ahead remains significant. Success will require continued collaboration-- across the FAA, with our aviation partners, and with Congress. With this accelerated modernization work already underway, that collaboration becomes even more essential.
The DCA accident was a defining moment for the FAA and for the country. It exposed gaps, but it also galvanized action. The recent shutdown further reminded us of the importance of our aviation ecosystem. And together, these events have shaped an agency now more focused, more proactive, and more determined than ever to fulfill its mission.
We owe the American people a system that is safe, modern, resilient, and built for the future.
That is the course we are on, and with the support of this Committee, we will deliver it.
Thank you for the opportunity to testify today. I look forward to your questions.
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Original text here:
FCC Commissioner Trusty Testifies Before Senate Commerce, Science & Transportation Committee
WASHINGTON, Dec. 31 -- The Senate Commerce, Science and Transportation Committee released the following testimony by Federal Communications Commissioner Olivia Trusty from a Dec. 17, 2025, hearing on the oversight of the agency:* * *
Chairman Cruz, Ranking Member Cantwell, and members of the Committee, thank you for the opportunity to appear before you today.
It has been nearly six months since I was sworn in as a Commissioner at the Federal Communications Commission. In that time, I have had the privilege of working on policies to expand access to high-speed connectivity, enhance the resilience ... Show Full Article WASHINGTON, Dec. 31 -- The Senate Commerce, Science and Transportation Committee released the following testimony by Federal Communications Commissioner Olivia Trusty from a Dec. 17, 2025, hearing on the oversight of the agency: * * * Chairman Cruz, Ranking Member Cantwell, and members of the Committee, thank you for the opportunity to appear before you today. It has been nearly six months since I was sworn in as a Commissioner at the Federal Communications Commission. In that time, I have had the privilege of working on policies to expand access to high-speed connectivity, enhance the resilienceof the Nation's communications networks, and restore U.S. leadership in next-generation communications technologies.
Critical to my work has been the opportunity to travel across the country and around the world to hear directly from broadband providers, tower engineers, fiber splicers, consumers, and our international partners and allies. Whether in Jackson, Mississippi, Eek, Alaska, or Baku, Azerbaijan, I heard about the state of the communications marketplace and how access to fixed, mobile, and satellite connectivity is delivering on the promise of job creation, technological innovation, and economic prosperity.
In Jackson, Mississippi, I saw how broadband is delivering quality, life-saving care straight into the homes of Mississippians across the Magnolia State. Doctors at the University of Mississippi Medical Center are treating chronic illnesses, managing high-risk pregnancies, and delivering mental health care by video to rural communities that would otherwise go without these essential services.
In Bethel and Eek, Alaska, I saw how access to broadband is transforming lives. These Alaskan towns are home to some of the most rugged and hard-to-reach terrain, and broadband is enabling Alaska Natives and Non-Natives alike to contribute to, and benefit from, the global digital economy, while maintaining their treasured culture and way of life.
And this fall, I traveled to Baku, Azerbaijan, to represent the United States at the International Telecommunication Union's World Telecommunication Development Conference.
There, ministers and regulators from around the globe highlighted their progress on closing the digital divide within their nation's borders. They also used this forum to seek U.S. guidance and leadership on maximizing spectrum efficiency, building trusted networks and secure supply chains, and creating a regulatory environment that invites continued innovation, investment, and competition, while protecting consumers and enhancing public safety.
These are issues we confront at the FCC in almost every proceeding. They also inform the three priorities guiding my work: universal connectivity, network resilience, and U.S. leadership.
Ensuring that every American has access to communications services has been the FCC's core mission since its founding. Following my confirmation, the Supreme Court affirmed the constitutionality of the Universal Service Fund. I commend the bipartisan, bicameral congressional USF Working Group for taking the initiative to identify reforms to ensure the program's sustainability and continued support for the operation and maintenance of communications networks in rural and remote areas.
In an era of growing digital hostility, however, achieving universal connectivity requires increased focus on the deployment of trusted and resilient network infrastructure. Our communications networks are the backbone of both our economy and our defense. From robocall scams to foreign-made network components, to infrastructure vandalism and copper theft, the threats are evolving rapidly. Recent Commission actions to remove foreign adversary-owned labs from our equipment authorization process, to block illegal robocalls from exploiting American consumers, and to garner commitments from broadband providers to harden their network infrastructure, will enhance network integrity, while allowing us to maintain agility in responding to new and emerging threats.
U.S. leadership in next-generation technologies - 6G, AI, emerging commercial services in space and more - hinges on our ability to deploy high-speed and resilient communications infrastructure to every corner of the country. Thanks to President Trump and the leadership of Chairman Cruz, and the members of this Committee, the Commission's general spectrum auction authority has been restored, along with the creation of a long-term spectrum pipeline. This positions America to lead in wireless innovation and beyond. Our continued success in technological advancement will ultimately be determined by a domestic and international regulatory environment that emphasizes innovation, competition, and global cooperation.
Importantly, U.S. leadership isn't inevitable, it must be earned. I look forward to working with members of this committee and our interagency partners to ensure the United States is positioned to capture first-mover advantages in technologies that will define the future of our economic and national security.
Mr. Chairman, thank you, again, for this opportunity to testify. I look forward to your questions.
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Original text here: https://www.commerce.senate.gov/services/files/2E3E4609-3B60-4806-89F8-B07CC415CF92
Leaf Street Strategies Founder Klimas Testifies Before Senate Banking, Housing & Urban Affairs Subcommittee
WASHINGTON, Dec. 31 -- The Senate Banking, Housing and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection released the following testimony by Klimas, founder of Leaf Street Strategies and president of the Cannabis Regulators Association, from a Dec. 16, 2025, hearing entitled "Ensuring Fair Access to Banking: Policy Levers and Legislative Solutions":* * *
Chairman Tillis, Ranking Member Cortez Masto, and members of the committee. My name is Tyler Klimas, and I appreciate the opportunity to testify today on the issue of fair access to banking. I am the Founder of Leaf ... Show Full Article WASHINGTON, Dec. 31 -- The Senate Banking, Housing and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection released the following testimony by Klimas, founder of Leaf Street Strategies and president of the Cannabis Regulators Association, from a Dec. 16, 2025, hearing entitled "Ensuring Fair Access to Banking: Policy Levers and Legislative Solutions": * * * Chairman Tillis, Ranking Member Cortez Masto, and members of the committee. My name is Tyler Klimas, and I appreciate the opportunity to testify today on the issue of fair access to banking. I am the Founder of LeafStreet Strategies, a consulting and regulatory affairs firm specializing in cannabis policy. I previously served as chief regulator of Nevada's medical and adult-use cannabis industry and co-founded and served as president of the Cannabis Regulators Association, a nonprofit organization representing cannabis regulators across the U.S., Canada, and Europe.
Because this hearing is about ensuring fair access to banking, I believe no discussion of this issue is complete without addressing the challenges facing the cannabis industry and the role policy solutions like the SAFER Banking Act can play in addressing them. As Nevada's former chief regulator overseeing a billion-dollar retail market, my job was to implement compliance programs designed to prevent diversion, ensure product safety, and protect public trust and confidence through transparency across the industry. Each of those responsibilities was made more difficult by the lack of access to traditional banking services.
Today, 40 states and territories have developed regulated cannabis markets, supporting hundreds of thousands of jobs and generating billions in state tax revenue. Yet many of these state-legal businesses continue to struggle to access basic financial services. As a result, they remain cashintensive, creating a significant public safety risk and an economic burden on small and mediumsized businesses that already operate on thin margins.
The SAFER Banking Act would provide the certainty financial institutions need to serve this growing industry, while also making communities safer and improving transparency and accountability in the marketplace.
I. Current State of the Legal Cannabis Industry and Banking Access
More than half of Americans now live in a state where adult-use cannabis is legal, and the industry is projected to generate over $44 billion/1 in revenue in 2025. Despite this growth, banks and other financial institutions remain reluctant to serve cannabis businesses due to ongoing regulatory uncertainty. While some banks and local credit unions do service legal cannabis businesses, the universe is small. According to FinCEN Data from the fourth quarter of 2024 (the most recent year data is available), only 507 banks, 182 credit unions, and 127 non-depository institutions filed Marijuana Priority or Marijuana Limited Suspicious Activity Reports under the 2014 FinCEN Guidance on Marijuana Banking./2
For comparison, there are more than 4,300 FDIC-insured banks/3 and over 4,300 federally insured credit unions nationwide./4 Even when financial institutions do enter the space, they take on risk due to that uncertainty, risk that results in high administrative and compliance costs. These costs are then passed on to cannabis businesses in the form of high fees. And for the cannabis businesses that do find banking partners, many must look outside of their state to do so. In many cases, the full suite of banking services a normal business would expect, like lending and credit products, are unavailable to cannabis banking customers, despite the high cost of fees.
These challenges are not limited to cannabis operators alone. Businesses that support or engage with the cannabis industry, like industrial suppliers, agriculture vendors, commercial and industrial real estate firms, and even automotive dealers, fall victim to many of the same banking challenges because of their association with cannabis.
Employees of these cannabis businesses are also impacted. Workers have reported challenges in obtaining home or auto loans, and have had personal accounts closed. In Nevada, the state's leading cannabis advocacy organization is on its third bank account in five years.
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1 https://mjbizdaily.com/us-cannabis-sales-estimates/
2 https://www.fincen.gov/frequently-requested-foia-processed-records
3 https://www.fdic.gov
4 https://ncua.gov/files/publications/analysis/quarterly-data-summary-2025-Q3.pdf
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Even state governments have challenges with banking if they are one of 40 states that have a cannabis program. In Nevada, our regulation of cannabis risked disrupting the state's entire relationship with its banking partner, forcing us to spend countless hours to find creative workarounds and issue guidance to the industry on what language to avoid putting on payment notices. Instances like these are common in other states.
For example, West Virginia has encountered delays in accessing $34 million dollars in state tax revenue because of banking issues./5
In Maryland, they were met with similar challenges, and had to classify all transactions related to their adult-use marijuana program as "A Sale Subject to the 9% Rate under Senate Bill 516 of 2023"/6
II. Impact on State Regulators and Regulatory Bodies
Without greater engagement by financial institutions, we are also left with a growing lack of insight and transparency into licensed operators in state markets. This, too, directly impacts public safety. In Nevada, we drew from our world-renowned gaming regulatory model, to implement one of the nation's most comprehensive cannabis investigations divisions. We understood the importance not only of compliance, but of understanding exactly who was operating in our state industry and ultimately who was profiting from it.
While states enjoy incredible insight into supply chains through mandatory tracking systems, reconciling that information with the financials of companies that have difficulty maintaining banking relationships, or deal mainly in cash, makes that job extremely difficult. As a result, this creates opportunity for bad actors to exploit the lack of transparency and challenges in oversight, simply because we have yet to fill this policy gap.
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5 https://mountainstatespotlight.org/2025/10/22/34-million-cannabis-fund-unspent/
6 https://marylandmatters.org/2023/08/19/more-notes-from-maco-politicians-who-write-a-weed-by-any-other-nameai-ay-yi-yi-moco-term-limits-and-a-new-oc-attraction/
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I understand the desire to put effort behind a more comprehensive federal regulatory framework for cannabis. That is a goal shared with most in this industry. But each day we wait on commonsense measures like the SAFER Banking Act, we're hurting businesses, creating obstacles for employees trying to earn a living, and providing cover for bad actors to persist.
Furthermore, Congress's recent change to the definition of hemp puts even greater pressure and urgency on the need for legislation like the SAFER Banking Act. There are thousands of hemp companies that will be thrown into the same turmoil next November when the change in definition goes into effect.
III. Impact on Small and Medium-Sized Businesses and Reducing the Illicit Market When small and medium-sized businesses are forced to operate predominately in cash, public safety risks increase. Robberies and break-ins are frequent occurrences at cannabis dispensaries nationwide,/7 and due to conflicts in federal and state law, insurance providers are typically unwilling to work with cannabis businesses to help recover losses in the event of a burglary.
In Nevada, we dealt frequently with robberies of delivery drivers, an easy target given the cash payments upon delivery.
Creating a level playing field and ensuring fair access to normalized banking services allows legal cannabis businesses to realize cost savings and efficiencies just like any other business. In cannabis, cost savings and efficiencies for operators allows them to be more competitive in pricing, a key component in addressing the illicit market. As long as illicit market operators are able to exploit the unnecessary difficulties that legal operators face, we will continue to see unsafe and untested product available to consumers, and a significant loss of tax revenue to states and the federal government.
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7 See e.g., https://www.heraldnews.com/story/news/crime/2024/05/09/three-charged-with-heist-of-436000-inmarijuana-shop-profits/73631599007/
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IV. Rescheduling
The Trump Administration has signaled that cannabis may be rescheduled to Schedule III/8 under the Controlled Substances Act. While this represents a monumental recognition of the medical benefits of cannabis and an opening of pathways to more research and better public health policy, rescheduling alone does not alleviate the current banking challenges nor does it have any impact on safe harbor for financial institutions.
Congressional action is still needed, perhaps now more than ever.
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Conclusion
To conclude, allowing clear and certain access to the financial system for state-legal cannabis businesses does not amount to the federal legalization of cannabis. Legislation like the SAFER Banking Act enhances and strengthens regulatory oversight and allows financial institutions to rightfully serve businesses in their communities without unnecessary fear or uncertainty.
Thank you again for the opportunity to testify today.
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8 https://www.washingtonpost.com/business/2025/12/11/trump-marijuana-reclassification-executive-order/
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Original text here: https://www.banking.senate.gov/imo/media/doc/klimas_testimony_12-16-25.pdf
FCC Commissioner Carr Testifies Before Senate Commerce, Science & Transportation Committee
WASHINGTON, Dec. 31 -- The Senate Commerce, Science and Transportation Committee released the following testimony by Federal Communications Commissioner Brendan Carr from a Dec. 17, 2025, hearing on the oversight of the agency:* * *
Chairman Cruz, Ranking Member Cantwell, and Members of the Committee, thank you for the invitation to testify. I am grateful for the opportunity to join with my Commission colleagues today and provide an update on the FCC's work over the last year. I look forward to sharing with you the priorities we have been advancing at the FCC since January.
While this is not ... Show Full Article WASHINGTON, Dec. 31 -- The Senate Commerce, Science and Transportation Committee released the following testimony by Federal Communications Commissioner Brendan Carr from a Dec. 17, 2025, hearing on the oversight of the agency: * * * Chairman Cruz, Ranking Member Cantwell, and Members of the Committee, thank you for the invitation to testify. I am grateful for the opportunity to join with my Commission colleagues today and provide an update on the FCC's work over the last year. I look forward to sharing with you the priorities we have been advancing at the FCC since January. While this is notmy first time testifying before the Commerce Committee, it is my first time appearing before you as Chairman, and there are a number of new members on the Committee since the last FCC oversight hearing in 2020. So I wanted to begin with a brief introduction.
I first joined the FCC as a staffer in 2012 over a dozen years ago. In the time since, I have had the privilege of serving in a number of different roles at the agency. I started out as an attorney in the FCC's Office of General Counsel. I then worked as a legal advisor for a Commissioner. Following that, I served as the General Counsel of the FCC before President Trump nominated me to serve as a Commissioner in 2017. Having been confirmed by the Senate three times, I am very grateful to President Trump for his decision to designate me as Chairman of the FCC earlier this year.
Working alongside my Commission colleagues here today and leading the talented group of public servants at the agency is the honor of a lifetime. I am proud of the work the agency's dedicated staff have been getting done for the American people. And I am especially grateful for their commitment to public service through the recent government shutdown. It is great to have everyone back in the building again.
I would also like to take a moment to recognize the important work that this Committee has accomplished this Congress. Thanks to Chairman Cruz, and many of his fellow Committee Members, the FCC's spectrum auction authority has now been restored through President Trump's One Big Beautiful Bill. When the FCC's auction authority lapsed for the first time ever back in 2023, it put America's global leadership and our connectivity goals at serious risk. I am glad we are correcting course now. I also want to applaud Chairman Cruz and Senator Markey for their leadership on the AM Radio for Every Vehicle Act. This legislation will help keep AM radio--a linchpin of our emergency response system--in place and ensure that Americans can continue to access local news, information, and entertainment programming.
Following President Trump's strong leadership, the FCC has moved quickly to execute on an ambitious set of reforms. We are advancing a Build America Agenda--a concrete plan to unleash high-speed infrastructure builds, drive down prices for consumers, and restore U.S. leadership in wireless. We are reinvigorating the agency's consumer protection work, including its efforts to crack down on illegal robocalls. We are empowering broadcasters to meet their public interest obligations. We are strengthening America's national security and advancing public safety. We are undertaking the largest deregulatory effort in the agency's history. And we are eliminating waste while improving efficiency and modernizing agency operations.
I detailed much of this agenda for the first time on a visit earlier this year to a tower construction company's training center in Sioux Falls, South Dakota. While Sioux Falls might not be everyone's pick for rolling out a policy agenda for a federal agency headquartered in Washington, D.C., I could not think of a more appropriate setting. For one, the communities spread across South Dakota are a great reminder of the types of places we have to keep in mind as we develop connectivity policies back here in Washington. For another, I first visited that facility over seven years earlier--it was the first place that I ever put on a harness and hardhat in this job and climbed a tower. So it was a good reminder of the work ahead for America's broadband builders, and why the FCC's agenda should focus on making their jobs a little bit easier.
As I detailed in those remarks, the FCC's Build America Agenda focuses on a number of core priorities. I would like to provide the Committee with an overview of those goals, and the work the FCC is undertaking to advance them and some of the agency's other top agenda items.
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Unleashing High-Speed Infrastructure Builds.
The FCC is working to unleash high-speed infrastructure builds in communities across the country. We are modernizing permitting rules and cutting red tape. This includes making it easier for providers to retire slow and old copper lines and replace them with the modern, highspeed ones that consumers want. We are accelerating and simplifying the process for extending new lines across existing utility poles. And we are pursuing a range of additional steps that can remove barriers to deployment and streamline regulatory approaches. These actions will free up billions of dollars in capital that can go to work closing the digital divide.
At the same time, we are ending the Biden-era regulatory overreaches that only made it harder to build high-speed infrastructure in this country. This year, for instance, the FCC reversed a Biden-era plan that would have slowed down infrastructure builds by subjecting tower builds to additional, needless, and onerous regulations. We also stopped a Biden-era proposal to regulate so-called "bulk billing" arrangements, which could have increased the price of Internet service for Americans living in apartments by as much as 50 percent. And at the very beginning of this year, a federal court invalidated the prior FCC's plan to expand government control of the Internet through heavy-handed, Title II regulation.
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Restoring America's Leadership in Wireless.
The FCC has also been working hard to free up airwaves and restore the country's leadership in wireless. This is key because opening up spectrum for more intensive use drives down prices for consumers, brings families across the digital divide, and strengthens competition. But at the beginning of this year, the FCC had a lot of work to do on this front.
Our spectrum auction authority had lapsed two years earlier. And there was no pipeline of spectrum for the agency to auction.
Thanks to President Trump's leadership, we are turning things around--and fast. At my very first meeting as FCC Chairman, we started a proceeding to examine ideas for freeing up a large swath of spectrum in the Upper C-band. The White House then initiated a ten-week "spectrum sprint" to study options for lighting up hundreds of megahertz of spectrum. And President Trump leaned in--making it clear that advancing America's 5G and 6G leadership would be a top priority for the Administration.
Chairman Cruz and many members of this Committee then spearheaded the work to pass the spectrum provisions of the One Big Beautiful Bill. Those provisions restored the FCC's auction authority and established a real spectrum pipeline--one with hard deadlines, clearing targets, and candidate bands.
For our part, the One Big Beautiful Bill requires the FCC to auction at least 100 megahertz of spectrum in the Upper C-band by July 2027 and at least 300 megahertz total by 2034. The FCC has been working hard to implement those provisions in coordination with other federal agencies and stakeholders. Indeed, just last month, the Commission voted on a proposal to auction up to 180 megahertz of spectrum in the Upper C-band--exceeding the 100 megahertz minimum set by Congress.
Of course, a lot of work remains ahead on the C-band. Success will require continued interagency coordination, especially with our federal partners at the FAA and NTIA. It also requires extensive cooperation and information sharing between the wireless and aviation sectors. We have been working well with all stakeholders, and I am pleased with the collaboration we've seen to date.
But our work to advance U.S. spectrum leadership is not limited to the Upper C-band or even spectrum auctions alone. In the secondary markets, we are now seeing large swaths of spectrum moving into the hands of competitors that can put it to productive use quickly. On this score, AT&T recently agreed to purchase 50 megahertz of spectrum. And SpaceX has agreed to acquire 60 megahertz more. If approved, the latter transaction could advance America's position as the world-leader in next-generation, direct-to-cell technology. These secondary market moves are already showing results. Indeed, just recently, one carrier announced that they have already built out spectrum they gained access to this year to over 23,000 cell sites in record time-- boosting 5G speeds by up to 80 percent.
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Boosting America's Space Economy.
President Trump has been clear that the Administration is ushering in a new Golden Age for space innovation in America. And President Trump's leadership could not come at a better time. Our nation is in the midst of what I refer to as a Space Race 2.0. This time around our main competitor is the government of China, which has its sights set on dominating in low-Earth orbit and up and down every orbital location.
To win this second Space Race, the U.S. is going to rely on American innovators. And I have had the chance to see these great businesses firsthand on visits outside the Beltway. Earlier this year, for instance, I visited Midland, Texas, with Chairman Cruz where we saw some of the nation's leading innovators building next-gen satellites in West Texas.
The FCC's efforts on this front are possible thanks to the Executive Order President Trump signed earlier this year to streamline regulations and foster a competitive commercial space industry. The FCC is following the White House's lead. We are looking to add rocket fuel to our space economy and give the private sector a predictable regulatory framework by focusing on four main principles: speed, simplicity, security, and satellite spectrum abundance. We are already clearing out application backlogs and standardizing procedures in furtherance of that agenda.
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Strengthening America's Telecom Workers.
I have had the chance to climb towers, splice fiber, and string lines with some of the country's most talented and hardworking telecom crews. So it is important to me that the FCC do its part to strengthen the nation's telecom workforce. I am determined to ensure that our nation's tower and telecom crews are rewarded for their work. And they are poised to benefit greatly from President Trump's leadership and the agency's Build America Agenda.
We are already seeing good results. Over the last year, many communications providers have committed to a range of workforce reforms that will result in a more sustainable environment for America's tower and telecom crews. Providers are now adopting faster payment cycles and fairer pricing metrics. They are minimizing layers of subcontracting, which will allow for greater oversight of crews and stronger safety protections. And they are closing loopholes that allowed foreign, fly-by-night groups to swoop in and undercut U.S. crews. The FCC will continue to look out for American workers.
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Reinvigorating the FCC's Consumer Protection Work.
The FCC has been working hard to reinvigorate and modernize our consumer protection work. Of course, the issue the FCC hears about the most through consumer complaints is illegal robocalls. And on this front, the FCC has started a new campaign to tackle illegal robocalls at every point in the call path. For years, the government's efforts in this area have been described as a game of whack-a-mole. When we address one type of scam, or fine a bad actor, another one pops up using a new workaround.
So we are now looking at every portion of the call lifecycle. We are focusing on prevention--stopping bad actors from ever originating calls in the first place. We are pushing carriers to block more illegal robocalls before they reach consumers. We are giving consumers better tools to distinguish legitimate calls from scams. We are looking to curb scam calls that originate outside of the United States by deterring the use of U.S. area codes for calls originating overseas. And we are stepping up enforcement to make sure every provider doing business in the U.S. takes proactive steps to mitigate robocalls. Indeed, on my watch, the FCC has now removed over 1,200 non-compliant voice service providers from the Robocall Mitigation Database, which functionally disconnects them from the U.S. phone network. The FCC will continue to crack down on shady providers using all of the tools at our disposal.
Our work on consumer protection matters also includes our efforts to help Americans access the right resources during a time of crisis. This year, for instance, we adopted rules requiring wireless providers to develop the capability to transmit georouting data when someone sends a text to 988. This means that someone reaching out for help during a crisis will get the localized help they need.
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Empowering Local Broadcasters.
The FCC is working to empower local broadcasters to serve the public interest and meet the needs of their communities. As Congress, the Supreme Court, and the FCC have all made clear, broadcasters are different than every other distributor of media. Specifically, broadcasters are required by both the Communications Act and the terms of their FCC-issued licenses to operate in the public interest. This sets them apart from cable channels, podcasts, streaming services, social media, and countless other types of distributors that have no public interest obligation. The FCC's broadcast hoax rule, its news distortion policy, its political equal opportunity regulation, its prohibition on obscene, indecent, and profane content, its localism requirements--all of those and more apply uniquely to broadcasters. Congress has instructed the FCC to enforce public interest requirements on broadcasters. The FCC should do exactly that.
Television broadcasters have this public interest obligation because the government has given them the unique privilege of using a scarce national resource--the public airwaves--and in doing so has necessarily excluded others that might want to broadcast their own programming over that same spectrum. That is why they are required to serve, not just their own narrow interest, but the public interest, including the needs of their local communities.
To ensure that broadcasters can meet their public interest obligations, the FCC has taken a number of actions, including seeking public comment for the first time in more than 15 years on the relationship between the large, national programmers on the one hand and the many local broadcast television stations on the other. Comments in that proceeding suggest that many local broadcasters are concerned that the national programmers have amassed enormous power and influence in recent years and have made it more challenging for local broadcasters to fulfill their public interest obligations.
The FCC is going to continue its efforts to empower local broadcasters to meet their public interest obligations.
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Promoting National Security and Advancing Public Safety.
The FCC has significantly ramped up its efforts this year to promote our country's national security and advance public safety. For one, at the beginning of my time as Chairman, I stood up a new Council on National Security within the FCC to leverage all of the agency's authorities, expertise, and relevant workstreams to counter the threats posed by foreign adversaries, including the government of China. This Council is already paying dividends. The FCC cracked down on what we call "Bad Labs"--labs that review and approve electronics for use in the United States, but are owned or controlled by foreign adversary governments. The Council on National Security also executed Operation Clean Carts, which worked with ecommerce platforms to take down millions of listings of devices on the FCC's Covered List or otherwise prohibited for sale in the United States.
And that's not all. In May, the FCC started the process of identifying foreign adversaries that hold licenses or authorizations in the communications sector, in line with the policy of Senator Fischer and Senator Lujan's FACT Act. In August, the FCC adopted new rules on undersea cable security, following President Trump's America First Investment Policy Memorandum. In those rules, we took action to unleash the build out of undersea cables to ensure the U.S. leads the world on AI infrastructure, as the President's AI Action Plan calls for, while mitigating threats to undersea cables from foreign adversaries. In October, the FCC closed two loopholes that provided no check on old models of covered equipment--potential spy gear--to be imported or sold, as well as allowed devices to be approved that contain covered equipment as module components. And most recently, in the wake of SALT Typhoon, the FCC has worked directly with carriers to ensure that they are adapting their cybersecurity practices and hardening their networks against future attacks, including by working with federal partners like the FBI, NSA, and CISA to receive technical assistance on networks, rapidly share information, and working together to strengthen cyber defenses.
Beyond threats from foreign adversaries, the FCC also continues to foster network resilience in the face of natural disasters. My first trip as Chairman of the FCC was to Western North Carolina where I visited several of Hurricane Helene's hardest-hit areas and met with emergency management and public safety officials, telecom crews, broadcasters, and other government representatives that worked to rebuild those communities. In July, we hosted a public roundtable focused on collaboration between communications service providers, electric utilities, and emergency management officials. Following the discussion, we published CrossSector Best Practices for Hurricane Season in September focused on disaster recovery, "blue sky" coordination efforts, and mutual cross-sector aid and assistance, building on the work of the Mandatory Disaster Response Initiative.
Earlier this year, the FCC also began the process of a ground-up re-examination of the national alert and warning systems, including the Emergency Alert System and Wireless Emergency Alerts. The underlying frameworks of these systems are 31 and 13 years old, respectively, so it is important to ensure the FCC is leveraging the latest technology to save lives.
The FCC has also worked to strengthen and modernize our Nation's public safety systems. In March, the FCC proposed requirements to improve location precision for 911 callers in multistory buildings. We also moved forward with a proposal that would make the transition from legacy 911 to NG911 effective and reliable without creating new vulnerabilities in critical public safety networks.
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Streamlining Regulations and Modernizing Agency Operations.
Right now, the FCC is also undertaking the largest deregulatory initiative in the agency's history. At the beginning of my tenure as Chairman, I launched an effort titled "In Re: Delete, Delete, Delete." Since then, the FCC has been reviewing every rule, regulation, and guidance document for the purpose of eliminating unnecessary regulatory burdens, and we sought feedback from stakeholders to get their perspectives as well.
I am now pleased to report that to date the FCC has removed or teed up for removal 1,108 rules and regulations, 134,928 words, and 312 pages of the Code of Federal Regulations.
The FCC has also worked to close out inactive dockets and has terminated a record 2,048 inactive proceedings. These initiatives further the Commission's goal of promoting good governance, increasing efficiency, and modernizing agency processes.
Improving efficiency at the FCC does not stop with examining the CFR and open FCC dockets. We are also working to be good stewards of the taxpayers' funds. In Fiscal Year 2025, we generated millions of dollars in savings by eliminating or modifying unnecessary contracts.
We also brought agency staff back into the building to foster in-person collaboration to deliver on the FCC's mission.
As you can tell, the FCC and its hardworking staff have been moving fast to deliver great results for the American people this year. I thank them for their dedicated service. And I look forward to the important work ahead.
In closing, I want to thank you again Chairman Cruz, Ranking Member Cantwell, and Members of the Committee for holding this hearing and for the opportunity to testify. I look forward to answering your questions.
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Original text here: https://www.commerce.senate.gov/services/files/D4AD2AAD-28D6-4F4B-ABB7-DDFB2682FCDB
House Science, Space & Technology Committee Chairman Babin Issues Opening Statement at Hearing on Research Security
WASHINGTON, Dec. 31 -- Rep. Brian Babin, R-Texas, chairman of the House Science, Space and Technology Committee, released the following opening statement from a Dec. 18, 2025, hearing entitled "Research Security: Examining the Implementation of the CHIPS and Science Act and NSPM-33":* * *
Thank you, Chairman McCormick, for holding this hearing on such an important topic.
Today, we are here to address a matter of growing concern for this Committee and the American people: the security of our federally funded research and development enterprise.
The United States leads the world in science and ... Show Full Article WASHINGTON, Dec. 31 -- Rep. Brian Babin, R-Texas, chairman of the House Science, Space and Technology Committee, released the following opening statement from a Dec. 18, 2025, hearing entitled "Research Security: Examining the Implementation of the CHIPS and Science Act and NSPM-33": * * * Thank you, Chairman McCormick, for holding this hearing on such an important topic. Today, we are here to address a matter of growing concern for this Committee and the American people: the security of our federally funded research and development enterprise. The United States leads the world in science andinnovation because our research system is open, collaborative, and driven by excellence. But that openness--one of our greatest strengths--also makes us vulnerable to foreign actors seeking to bypass the hard work and costs of original innovation and infiltrate research programs.
These threats are real. They come from governments and organizations that do not share our commitment to openness, integrity, and reciprocal collaboration. Protecting American research from such exploitation is not a partisan issue3/4it is a national security imperative.
The motivation for today's hearing is clear: to ensure that the laws and directives Congress and the Executive Branch have already put in place to protect U.S. research are being implemented effectively and consistently across federal agencies.
In 2021, President Trump issued National Security Presidential Memorandum-33, directing federal agencies to safeguard the integrity of U.S. government-supported research and development. The following year, Congress built upon that foundation with the CHIPS and Science Act, which reinforced federal research security standards and required institutions to establish policies on foreign affiliations, conflicts of interest, and data protection.
Together, these measures form the backbone of our national research security framework. They are meant to defend American innovation against foreign espionage, cyberattacks, and intellectual property theft--threats that are neither hypothetical nor distant. We've seen individuals attempting to smuggle federally funded research, sensitive data, and even dangerous biological materials into and out of the country.
This Committee has already issued several letters to institutions seeking information on research security implementation. The responses we've received highlight significant confusion about expectations, timelines, and enforcement. These gaps are exactly what our adversaries exploit--and that is why congressional oversight is essential.
We are not here to point fingers--we are here to ensure accountability. The Federal Government has a duty to provide clear, actionable guidance, and the research community has a duty to follow it. Protecting taxpayer-funded research should not depend on which agency you work with or which grant you apply for. It must be streamlined, clear, and effective.
However, as implementation of these directives begins, we must ensure that agencies are not imposing unnecessary administrative burdens or conflicting requirements that make compliance harder rather than easier. Security and innovation are not mutually exclusive--but achieving both requires coordination, clarity, and commitment.
The goal of today's discussion is to identify what is working, what is not, and what Congress can do to strengthen support for our research enterprise.
We all share the same objective: to protect American innovation, uphold the integrity of our research system, and ensure that taxpayer dollars advance U.S. interests--not those of our adversaries.
I want to thank our witnesses for being here this morning and for the work each of you is doing to address these challenges. This Committee is dedicated to working to secure the future of American science and technology for the benefit of all citizens. Thank you, and I yield back.
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Original text here: https://science.house.gov/2025/12/opening-statement-of-babin-research-security