Delegation for 9.3.24: Painful — algorithm — China CHIPS — peace prize — student debt

Image via AP.

Competition of pain

Israel found the bodies of six Hamas hostages dead, including an American citizen. This prompted further protests and unrest in Israel. It also prompted commentary from members of Florida’s congressional delegation.

“It tore out my heart, as a Jewish mother of three children in their 20s, to hear of the murder of the six Hamas-held hostages, five of whom were in their 20s and one who was a young mother herself,” posted Rep. Debbie Wasserman Schultz, a Weston Democrat, on X. May their memories be for a blessing.

“As Vice President Kamala Harris said, ‘The threat Hamas poses to the people of Israel — and American citizens in Israel — must be eliminated and Hamas cannot control Gaza. The Palestinian people too have suffered under Hamas’ rule for nearly two decades.’”

Lawmakers from the Sunshine State pressed President Joe Biden’s administration for a faster resolution to the conflict, though members offered different opinions on whether diplomacy or force would be appropriate.

For many Republicans, the murder of hostages showed the irrationality and immorality of Hamas, which took hostages after terrorist attacks on citizens in October last year.

“For Hamas to hold hostages for 11 months, only to murder them, is nothing short of evil, horrific and cowardly,” Rep. Greg Steube, a Sarasota Republican, posted.

“My heart goes out to all six families, including the family of American Israeli Hersh Goldberg-Polin. More American blood on the hands of Hamas. America must stand strongly with Israel in calling for the complete elimination of Hamas by any means necessary. No more wavering or delays from the MIA Biden-Harris administration.”

But as protesters filled the streets in Jerusalem, some of Florida’s lawmakers joined in, saying Israel must stop bombing civilian-heavy areas.

“My heart goes out to the families of Hersh Goldberg-Polin, a U.S. citizen, and the five Israeli hostages murdered by Hamas,” posted Rep. Sheila Cherfilus-McCormick, a Miramar Democrat. “This war must end, and hostages must come home. As Hersh’s parents said, ‘In a competition of pain, there are no winners.’”

Meanwhile, Rep. Brian Mast, a Stuart Republican, said the U.S. failed hostages for failing to send U.S. forces to retrieve them, especially with Americans being held by Hamas.

“Also puzzling that from the moment Americans were taken hostage in Gaza, neither Joe Biden nor Kamala Harris made the commitment that there will be Americans coming to get them,” he posted on X.

Across the board, lawmakers stressed that the moral weight for the deaths rests with Hamas.

“Hamas can end this war today if they lay down their weapons and stop murdering hostages,” Rep. María Elvira Salazar, a Coral Gables Republican, posted. “My prayers are with all of the families as we mourn this terrible loss!”

Algorithm rights

The death of a 10-year-old who choked herself after watching a TikTok challenge has the social media platform in the crosshairs. Sen. Marco Rubio, a longtime tech company critic, said he doesn’t want standard digital rules shielding the business from accountability.

The Third Court of Appeals revived a lawsuit that appeared dead in lower courts, determining Section 230 protections should not shield a tech platform if it pushed content at children.

“TikTok makes choices about the content recommended and promoted to specific users, and by doing so, is engaged in its own first-party speech,” Judge Patty Shwartz wrote.

Rubio agreed and said companies can hide their behavior in code.

“The Third Circuit Court of Appeals is right: algorithms should not enjoy protections under Section 230. For years, Big Tech companies have abused these special protections even as they use murky algorithms and unaccountable teams of moderators to manipulate online discourse to their worldview,” the Miami Republican said.

“This court decision is the first step toward accountability, but Congress should also take action by passing my DISCOURSE Act to make clear algorithmic amplification, moderation activity, and other similar efforts are not protected under federal law.”

Rubio’s office noted he filed legislation updating Section 230 protections in 2021 that would make platforms responsible for promoting or censoring content by manipulating algorithms.

China inside

When Sen. Rick Scott voted against the CHIPS and Science Act, he predicted millions would end up subsidizing manufacturing in China. He said that is happening as Intel lays off U.S. workers after accepting funding through the legislation.

The Naples Republican sent a letter to Intel CEO Patrick Gelsinger demanding the company explain how it could accept billions and cut U.S. workers while expanding operations in China.

“When the Senate was considering the CHIPS and Science Act in 2022, members of the Senate warned about the bill’s flaws, which have allowed companies like Intel to gain access to massive amounts of U.S. taxpayer money while continuing to operate in Communist China, while also failing to include real metrics that would protect taxpayer dollars from going to companies that could not meet high standards for U.S. manufacturing and job creation,” Scott wrote.

“Today, in light of Intel’s decision-making, I am deeply troubled at the prospect that the tax dollars aforementioned will be completely wasted on a failed attempt by the Biden-Harris administration to keep Intel operating in sync with U.S. interests and stopping it from investing in Communist China, which you made clear you have no interest in doing under questioning during a U.S. Senate Committee on Commerce, Science, and Transportation hearing in 2022.”

Gelsinger hasn’t publicly addressed the concern personally, even as financial press speculates about his own future at the company.

This month, the company announced its second quarter revenue was down 1%, or about $12.8 billion.

“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones. Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation,” Gelsinger said.

“These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value.”

Peace prize nomination

Several Florida legislative delegation members want Venezuelan opposition leader María Corina Machado named a Nobel laureate.

Scott and Rubio led a letter to the Norwegian Nobel Committee urging the political figure to be awarded the Nobel Peace Prize this year. Machado won a Venezuelan Primary to pick an opposition candidate to Venezuelan President Nicolás Maduro, though Maduro’s allies in court ultimately barred her from the ballot.

“She has risked everything to rally the previously flagging spirits of the Venezuelan people,” the letter reads. They have suffered 25 years of oppression, torture, murder, and economic deprivation at the hands of the Chavez-Maduro regime, which has systematically undermined democratic institutions and perpetuated a regional crisis of monumental proportions. Machado stands as a beacon of hope and resilience.

“Despite enduring severe personal threats, including attempts on her life, Machado has remained steadfast in her commitment to restoring democratic governance in Venezuela. Her leadership is instrumental in mobilizing both domestic and international support for a peaceful resolution to the ongoing electoral fraud crisis. Her tireless efforts to advocate for free and fair elections and to bring attention to the human rights abuses occurring under the current regime embody the very principles that the Nobel Peace Prize seeks to honor. Machado’s efforts to bring a democratic peace to Venezuela benefit her country, as well as the region and the world.”

Reps. Mario Díaz-Balart, Byron Donalds, Neal Dunn, Carlos Giménez, Salazar and Michael Waltz co-signed the letter.

An election in July ultimately pitted Maduro against Edmundo Gonzalez, who replaced Machado on the ballot. Exit polling showed Gonzalez defeating Maduro, but the incumbent declared himself the winner, a victory now certified by the Venezuelan Supreme Court. Maduro’s government just issued a warrant for Gonzalez’s arrest for conspiracy with Machado, according to Reuters.

“María Corina Machado’s peaceful resistance to tyrants and her ability to organize and lead a nonviolent movement for democracy and human rights is exemplary,” the letter to the Nobel committee reads.

“Her unwavering moral compass and commitment to democratic peace for her country and the region are an example to the world. She and the movement she created represents a stark contrast to the Maduro dictatorship and its supporters around the world who have helped him subdue, oppress and impoverish the people of Venezuela.”

Return to sender

The Department of Treasury demanded that Gulf County return more than $360,000 in relief money from the 2010 Deepwater Horizon oil spill.

The federal funds came through the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act (RESTORE) Act, a law that initially aimed to ease the economic burden on states impacted by the spill. However, a compliance report released in August found some of the funds went to non-allowed uses, including dollars spent with Langton Consulting.

But Dunn, a Panama City Republican, said it’s unfair to burden the county with returning that money after oversight agencies preapproved the use. He sent a letter to Treasury Secretary Janet Yellen and the Recover Programs Office Remediation Director Troyling Harris asking them to reconsider the clawback ruling.

“Gulf County has been transparent and compliant with Treasury regulations since the inception of the RESTORE Act,” Dunn said.

“The Department of Treasury previously confirmed multiple times that Gulf County was in compliance with the RESTORE Act’s terms and conditions. Requiring the return of these funds after years of successful compliance and cooperation is unjust and will have severe economic repercussions on this small, rural, and financially constrained county.”

He also noted that Gulf County endured economic challenges after the oil spill, including the lingering impacts of Hurricane Michael in 2018.

“I urge the Department of Treasury to reconsider this decision and recognize the economic harm that will occur if these funds are clawed back from Gulf County,” Dunn said. “The county has made substantial progress in its recovery and compliance efforts, and this ruling jeopardizes that progress.”

Vero VA

Vero Beach will soon be home to Florida’s newest Veterans Affairs clinic. Rep. Bill Posey announced the city had been selected for a new location within the West Palm Beach VA Healthcare System.

“This is a long-awaited benefit that is owed to our Indian River County veterans, and I am pleased to hear the VA is moving in this direction,” the Rockledge Republican said. “Keeping our commitments to our veterans is a top priority. I would like to thank West Palm Beach VA Healthcare System Director Cory Price and his staff for bringing this to fruition.”

Construction will begin in March on the facility, which will be located in the RiverSide Medical Center Plaza.

Critical minerals

The Select Committee’s Critical Minerals Policy Working Group, led by Democratic Rep. Kathy Castor of Tampa and Republican Rep. Rob Wittman of Virginia, convened on July 23 to tackle the pressing issue of the United States’ heavy reliance on Chinese imports for critical minerals.

This third meeting continued to examine the complexities surrounding the U.S. supply chain, bringing together key voices like Peter Mattis, president of The Jamestown Foundation; Emily De La Bruyere, Senior Fellow at the Foundation for the Defense of Democracies and co-founder of Horizon Advisory; and Jennifer Hinton, Group Manager ESG at Jervois Global.

As the committee convened, it became clear that one name — Jervois Global — would continue to surface in discussions.

This meeting underscored those concerns and prompted further scrutiny into whether Jervois is becoming a cautionary tale of inadequate oversight in this high-stakes sector.

The July 30 Quarterly Report from Jervois paints a concerning picture. The company’s cash reserves have dwindled to just $21.3 million, with a modest positive operating cash flow of $4.3 million. Despite this seemingly positive cash flow, the report reveals a broader backdrop of severe operational and market challenges.

At the core of these challenges lies the Idaho Cobalt Operations (ICO), which is supposed to be a cornerstone in the U.S. strategy to reduce reliance on foreign critical minerals. However, ICO needs help with financial sustainability, which has been hampered by over $169 million in debt and continuous operational losses.

In July 2024, Jervois restructured its debt by transferring significant obligations to the majority bondholder of the ICO’s $100 million Senior Secured Bond. The bondholder is now the lender under the facility, which remains secured against the assets, working capital and shares of Jervois Finland owned by Jervois.

The terms of the facility remain unchanged, including an unsecured parent guarantee from Jervois, but the debt restructuring underscores the mounting financial pressures. The July 26 announcement of this debt transfer reflects Jervois’ ongoing attempts to stabilize its balance sheet amid persistent challenges.

Student debt

As student loan debt compounds for many young Americans, Reps. Anna Paulina Luna and Jared Moskowitz worked together across the aisle on a solution.

The Student Loan Interest Cap Act, introduced by the St. Petersburg Republican and Parkland Democrat, would cap interest on federal student loans at 3%.

“Student loan debt has become a significant barrier for many Americans hoping to start a family, buy a house and save for retirement,” Moskowitz said.

“I see interest rates as a simple part of the issue that Congress can tackle. It’s not right that people are making monthly payments year after year and still owing more than they originally borrowed. As a dad, I want our kids to pursue the education they need to make a difference in the world, not fearing that it will put them in debt forever. I’m happy to work across the aisle with Congresswoman Luna on this common-sense solution.”

The cap would be roughly half the current average federal loan interest rate of 5.99%. Meanwhile, the average balance on such loans sits at $37,088.

“Millions of students get into high debt every year to be able to afford to go to college. Meanwhile, universities keep raising their tuition costs because they know students will just get a loan with interest rates of up to 9-10% that they will be paying their whole lives,” Luna said.

“It is time we put a cap on those interest rates to make it easier for those students to pay their loans responsibly and not become captives to the banks that back these greedy institutions. I’m proud to co-sponsor Rep. Moskowitz’s legislation and to fight alongside him for everyone trying to get ahead in their education.”

Outstanding federal student loan balances account for $1.602 trillion nationwide, representing about 92.8% of all student debt.

Helping seniors

A community fair hosted by Rep. Laurel Lee attracted nearly 100 residents to the Brandon Senior Center last week. There, her office connected constituents with appropriate service providers.

“My office’s first Senior Fair was a great way to bring the community together to give local senior citizens information about the myriad resources that are available to them. An important job of mine is keeping our community informed — and that includes our older adult population,” the Thonotosassa Republican said.

“I am blessed to be able to go to work every day and serve the people of Florida’s 15th District. I will always do what I can to assist our senior citizens, veterans, and Floridians in need.”

Scott’s office also sent representatives. Florida Attorney General Ashley Moody and state Rep. Danny Alvarez, both Hillsborough County Republicans, also attended to connect individuals with state resources.

So did representatives from Moffitt Cancer Center, Advent Health Care Center, St. Joseph Hospital, South Florida Baptist Hospital, the University of South Florida, Hillsborough County Services, Hillsborough County Supervisor of Elections office, Bay Area Legal Services, Seniors in Service, Senior Connection Center, and United States Citizenship and Immigration Services.

“Congresswoman Laurel Lee’s Senior Resource Fair is a great opportunity for seniors to connect with agencies and organizations aimed to help older Floridians — including the Florida Attorney General’s Office,” Moody said. “Florida is the Sunshine State, but we are also a silver state, and our office is dedicated to helping the millions of seniors who call Florida home.”

Rent checks

Cherfilus-McCormick closed out August by delivering more than $5 million in checks to local governments and nonprofits in Florida’s 20th Congressional District.

That included $2.25 million for Palm Beach County’s Workforce Affordable Housing Development Project, $1.67 million for Tamarac’s Rehabilitation and Rebuild Program, $963,000 for Lauderhill’s Comprehensive Crime Reduction Program, and $850,000 for Habitat For Humanity of Broward’s Rick Case Housing Community.

“On behalf of the people of Palm Beach County, I thank you for your commitment and support of our efforts to provide housing for all our residents,” said Palm Beach County Mayor Maria Sachs.

“The demand for affordable housing continues to increase with the ongoing population growth in the area along with the average wage, which continues to lag behind the amount of money people need to buy affordable housing, and the result is that our essential workers and service providers are basically being priced out of our area.”

Cherfilus-McCormick said the cost of housing in South Florida has been especially difficult for low-income individuals in the region. The Miramar Democrat stressed as much when she announced the Habitat For Humanity funding.

“Skyrocketing housing prices across South Florida have placed an enormous burden on families, making it increasingly difficult to afford a home. With the median home price in Broward County now over $350,000, it’s clear we must act,” Cherfilus-McCormick said.

“I’m proud to award Habitat Broward $850,000 to help expand affordable housing in our community. Through these homes, we bring stability, improve local economies, foster social connections, attract businesses, create jobs, and reduce crime. This investment makes a tangible difference, showing families in Broward County that we believe in them and that their community stands beside them every step of the way.”

On this day

Sept. 3, 1963 — “Lyndon Johnson accepts Robert Kennedy’s resignation” via the John F. Kennedy Presidential Library — Soon after President John Kennedy’s death, Robert Kennedy resigned as Attorney General and, in 1964, ran successfully for the United States Senate from New York. His opponent, incumbent Republican Sen. Kenneth Keating, labeled Kennedy a “carpetbagger” during the closely contested campaign. Kennedy responded to the attacks with humor. Frank as it is — and maybe it’s difficult to believe in the state of New York — I’d like to just be a good United States Senator. I’d like to serve.” Kennedy waged an effective statewide campaign, and aided by Johnson’s landslide, won the November election by a 719,000-vote margin.

Sept. 3, 1783 — “Treaty of Paris signed” via History.com — The American Revolution officially ended when representatives of the United States, Great Britain, Spain and France signed the Treaty. The signing signified America’s status as a free nation, as Britain formally recognized the independence of its 13 former American colonies, and the boundaries of the new republic were agreed upon: Florida north to the Great Lakes and the Atlantic coast west to the Mississippi River. The events leading up to the treaty stretched back to April 1775, on a common green in Lexington, Massachusetts, when American colonists answered King George III’s refusal to grant them political and economic reform with armed revolution.

Happy birthday

Best wishes to Rep. John Rutherford, who turned 72 on Monday, Sept. 2.

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Peter Schorsch publishes Delegation, compiled by Jacob Ogles, edited and assembled by Phil Ammann and Ryan Nicol.