October, 23 2017, 01:45pm EDT

For Immediate Release
Contact:
Email:,press@lawyerscommittee.org
Civil Rights Groups Sue U.S. Department of Housing and Urban Development Over Suspension of Rule Assisting Low-Income Families
Today, several civil rights organizations sued the U.S. Department of Housing and Urban Development (HUD) challenging its decision to suspend a rule that would have assisted low-income families in securing affordable housing. Five organizations - the Lawyers' Committee for Civil Rights Under Law, the NAACP Legal Defense and Educational Fund, Inc.
WASHINGTON
Today, several civil rights organizations sued the U.S. Department of Housing and Urban Development (HUD) challenging its decision to suspend a rule that would have assisted low-income families in securing affordable housing. Five organizations - the Lawyers' Committee for Civil Rights Under Law, the NAACP Legal Defense and Educational Fund, Inc. (LDF), the Relman, Dane & Colfax PLLC law firm, the Poverty & Race Research Action Council (PRRAC) and Public Citizen Litigation Group- represent the plaintiffs in the lawsuit.
The federal government's Housing Choice Voucher program--formerly known as the Section 8 voucher program--subsidizes the housing costs of more than two million low-income American households. HUD's Small Area Fair Market Rent (Small Area FMR) rule would have improved the way that the value of housing vouchers is calculated by allowing low-income families access to a broader market of rental properties. The lawsuit challenges HUD's delay of the rule's implementation.
"The suspension of this regulation by the Department of Housing and Urban Development is one more indication of this Administration's retreat from vigorous civil rights enforcement," said Kristen Clarke, President and Executive Director of the Lawyers' Committee for Civil Rights Under Law. "Many years of study and work went into the adoption of this rule, one that promotes greater opportunity in housing choice for low income and minority families and greater residential integration. This challenge to its suspension is crucial to the historical fight for a more integrated society."
The HCV program is intended to enable families to secure affordable, modest housing in the private market. Too often, however, the vouchers' allowable rent value does not provide participating families with a meaningful housing choice.
The current formula crudely calculates the value of housing vouchers based on entire metropolitan areas without regard to stark differences in housing costs from neighborhood to neighborhood. Using this formula, the value of a housing voucher is often too low for families to move to better neighborhoods, reinforcing residential poverty.
Because voucher users are disproportionately Black and Latino, policies that limit voucher use primarily to low income neighborhoods also increase racial segregation. The new HUD rule helps to cure this problem by changing how housing voucher amounts are calculated.
"The Small Area Fair Market Rent rule was one of the signature civil rights accomplishments at HUD during the Obama Administration," Philip Tegeler, PRRAC's Executive Director, said. "The purpose was to finally start to address the high levels of racial and economic segregation in the Housing Choice Voucher program. If this suspension is not challenged, we will continue to see low-income families and children steered into high poverty neighborhoods where rents are lowest."
In 2016, HUD issued the Small Area FMR rule, changing the housing voucher formula for 24 metropolitan areas. In each metro area, the rule would require voucher amounts to be based on the average rent values by zip code. The new formula, in effect, raises the allowable rent amount for thousands of participating families and gives them more choices. HUD's decision, however, delays enforcement of the new rule--scheduled to go into effect January 1, 2018--until January 2020, in 23 of the 24 jurisdictions.
"Time and time again, this Administration has acted to pull back public benefits and public protections provided by law," said Allison Zieve, Director of Public Citizen Litigation Group. "Here again, it has done so without following well-established legal requirements that exist to protect Americans from unreasonable and unlawful agency action."
As explained in the complaint, the suspension of the SAFMR rule is unlawful because HUD failed to follow appropriate administrative procedure rules requiring an opportunity for public comment and failed to provide sufficient justifications for the change. The lawsuit also alleges that HUD's action violates its duty under the Fair Housing Act to spend federal funds in a way that affirmatively furthers fair housing, rather than increasing racial segregation and concentrated poverty. The plaintiffs seek a court order requiring HUD to implement the new Small Area FMR rule on schedule.
"HUD abandoned its fair housing obligations at the expense of America's poorest renters by suspending this long-overdue rule," said John P. Relman, managing partner of the civil rights law firm Relman, Dane & Colfax. "We are filing this lawsuit to hold HUD accountable for refusing to follow the regulation it wrote."
The lead plaintiff, Open Communities Alliance, is a Connecticut-based fair housing organization that works to undo government policies that promote housing segregation. The Alliance is based in Hartford--one of the 23 metro areas affected by HUD's suspension of the rule.
"The new rule gives families the purchasing power to move to higher-opportunity neighborhoods instead of being confined to segregated and impoverished ones," said Sherrilyn Ifill, LDF President and Director-Counsel. "But the rule doesn't just open the door to a wider variety of housing choices. Families would also be able to choose better schools, jobs, healthcare, and even better grocery stores. HUD's delay will needlessly deprive families of access to these staples of stable communities."
Read the full complaint, here.
The Lawyers' Committee is a nonpartisan, nonprofit organization, formed in 1963 at the request of President John F. Kennedy to enlist the private bar's leadership and resources in combating racial discrimination and the resulting inequality of opportunity - work that continues to be vital today.
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Idaho Hospital Ends All Labor and Delivery Care, Citing Abortion Ban
"Consequences for Idaho physicians providing the standard of care may include civil litigation and criminal prosecution, leading to jail time or fines," said Bonner General Health as it closed its obstetrics unit.
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Rural areas in the U.S. have faced a decline in hospitals that provide obstetric services for years, and the fate of one hospital in northern Idaho suggests that abortion bans could worsen the trend.
As The Washington Post reported reported Tuesday, Bonner General Health in Sandpoint, Idaho has been forced to announce the impending closure of its labor and delivery department, citing staffing issues as well as the state's punitive abortion ban—one of the strictest in the nation—and threats from state Republicans to make the law even more stringent.
The state's ban criminalizes abortion cases in almost all cases and threatens doctors who provide care with felony charges, suspension or termination of their medical license, and up to five years in prison. It includes potential exceptions for people whose pregnancies result from rape or incest and people who doctors determine face life-threatening pregnancy complications—but as Common Dreams has reported, such exceptions have led medical providers to withhold care until a patient is sufficiently ill, placing them in danger.
The threat of prosecution and pressure to withhold medical care from people who need it has contributed to the hospital's staffing shortage, said Bonner General Health in a statement late last week.
"Idaho's political and legal climate does pose as a barrier specific to recruitment and retention for OB-GYNs."
"Highly respected, talented physicians are leaving. Recruiting replacements will be extraordinarily difficult," said the hospital. "In addition, the Idaho Legislature continues to introduce and pass bills that criminalize physicians for medical care nationally recognized as the standard of care. Consequences for Idaho physicians providing the standard of care may include civil litigation and criminal prosecution, leading to jail time or fines."
Idaho Republicans have proposed classifying abortion as "murder from the moment of fertilization" and have called for bans that extend to people whose pregnancies result from incest and rape.
"Idaho's political and legal climate does pose as a barrier specific to recruitment and retention for OB-GYNs," hospital spokesperson Erin Binnall told the Post.
Patients in Sandpoint will now have to travel to Coeur d'Alene, about 45 miles south, to deliver their babies. The city now has the northernmost labor and delivery department in the state, and people living near the state's northern border may have to travel two hours to reach the hospitals there.
Bonner General Health announced its decision days after the podcast "This American Life" featured an interview with an obstetrician who has worked for several years at Bonner General Health but has considered leaving the state since Idaho's ban went into effect last June, after the U.S. Supreme Court overturnedRoe v. Wade.
"I was looking at social media and somebody was talking about a person who is completing their OB-GYN residency and was looking to come to the Pacific Northwest," said Dr. Amelia Huntsberger. "And I'm like, hey, there's all sorts of openings in Idaho. And then I'm laughing out loud because I'm like, who is going to be finishing their residency training and being like, I definitely want to go to the state with the super strict abortion laws that criminalize healthcare?"
The Journal of the American Medical Associationpublished a report in 2018 showing that a lack of obstetric care in rural hospitals is associated with a rise in preterm births and more people giving birth in facilities where medical staff lack the proper training to assist with labor and delivery, such as emergency departments. High rates of maternal mortality are also associated with "maternity care deserts," which include nearly half of rural U.S. counties, according to the Commonwealth Fund.
Nearly 90 rural obstetrics units closed their doors between 2015 and 2019, with hospitals citing financial losses associated with high numbers of patients who use Medicaid as well as difficulty in recruiting and retaining doctors.
"This will be the beginning of a trend, I fear," said behavioral scientist Caroline Orr Bueno of Bonner General Health's decision. "We already have a maternal mortality crisis in the U.S.—we're the only country in the developed world where maternal mortality rates are increasing—and abortion bans are going to make it worse."
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Wildlife conservationists sounded the alarm Wednesday as an annual count of monarch butterflies revealed a sharp decline in the number of the iconic insects hibernating in Mexican forests, stoking renewed fears of their extinction.
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"Despite heroic efforts to save monarchs by planting milkweed, we could still lose these extraordinary butterflies by not taking bolder action," Tierra Curry, a senior scientist at the Center for Biological Diversity (CBD), said in a statement.
"Monarchs were once incredibly common," she added. "Now they're the face of the extinction crisis as U.S. populations crash amid habitat loss and the climate meltdown."
Renowned for its epic annual migrations from the northern U.S. and southern Canada to Florida, California, and Mexico, monarchs have suffered a precipitous plunge in population in North America this century.
According to the U.S. Fish and Wildlife Service (FWS), the number of eastern monarchs fell from around 384 million in 1996 to 60 million in 2019, and in the West their numbers declined from 1.2 million in 1997 to fewer than 30,000 last year.
As CBD noted:
At the end of summer, eastern monarchs migrate from the northern United States and southern Canada to high-elevation fir forests in central Mexico. Scientists estimate the population size by measuring the area of trees turned orange by the clustering butterflies...The eastern population has been perilously low since 2008.
Last year, the International Union for Conservation of Nature formally listed the monarch butterfly as endangered, citing critical threats posed by the climate emergency, deforestation, pesticides, and logging.
(Graphic: Center for Biological Diversity)
In the United States, the Trump administration in 2020 placed monarchs on the wait list for consideration for Endangered Species Act protection. FWS has until next year to make a final listing determination.
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Bernie Sanders Targets Moderna Greed in Covid-19 Vaccine Hearing
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Sen. Bernie Sanders on Wednesday denounced Moderna's proposal to more than quadruple the price of the Covid-19 vaccine it co-developed with billions of dollars in public funding—along with mRNA technology co-invented by government scientists—as an example of Big Pharma's "unacceptable corporate greed."
At a hearing held by the Senate Committee on Health, Education, Labor, and Pensions (HELP), the Vermont Independent reiterated his widely shared belief that the purpose of medical advancements should be to save as many lives as possible, not make executives "obscenely rich."
Sanders, who chairs the panel, invited Moderna CEO Stéphane Bancel to testify at a hearing titled "Taxpayers Paid Billions For It: So Why Would Moderna Consider Quadrupling the Price of the Covid Vaccine?"
In his opening statement, Sanders stressed that scientists at the National Institutes of Health (NIH) and other federal agencies "worked with Moderna to research, develop, and distribute the Covid vaccine that so many of our people have effectively used."
"While Moderna may wish to rewrite history," Sanders continued, "this vaccine would not exist without NIH's partnership and expertise and the substantial investment of the taxpayers of this country. As a matter of public record, U.S. taxpayers spent $12 billion on the research, development, and procurement of the NIH-Moderna Covid vaccine."
"For that huge investment," added the progressive lawmaker, Moderna is "thanking the taxpayers of America by proposing to quadruple the price of the Covid vaccine to as much as $130 once the government stockpile runs out—at a time when it costs just $2.85 to manufacture that vaccine."
"Moderna has already made $21 billion in profits off of the Covid vaccine during the pandemic and four of Moderna's executives and investors collectively became more than $10 billion wealthier as a result of the massive taxpayer investment into that corporation," said Sanders. "Mr. Bancel literally became a billionaire overnight and is now worth $4.7 billion."
"Do we not need to change the current culture of greed into a culture which understands that science and medical breakthroughs should work for ordinary people, and not just enrich large corporations and CEOs?"
In the words of the senator, "This type of profiteering and excessive CEO compensation is exactly what the American people are sick and tired of."
In response to a letter Sanders sent to Bancel following Moderna's January announcement of its planned price hike, the corporation vowed to make Covid-19 vaccines and boosters "available at no cost for the vast majority of people in the United States." Last month, after Bancel agreed to testify at Wednesday's hearing, Moderna said that when the federal government's public health emergency declaration expires in May, "Covid-19 vaccines will continue to be available at no cost for insured people," while the company's patient assistance program "will provide Covid-19 vaccines at no cost" to uninsured or underinsured people.
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"Our committee looks forward to working with Moderna to develop a program that allows every American to continue to receive the Covid vaccine for free without the need to file complicated forms or paperwork, answer personal questions, or wait for hours on end at the pharmacy," said Sanders. "In other words, let us truly make this vaccine available for free to all Americans."
But when asked by Sanders if Moderna will charge the U.S. government less for the NIH-Moderna Covid-19 vaccine, Bancel refused to commit, citing so-called "complexity."
"You have money for stock buybacks by the billions, and you guys became billionaires," Sanders responded. "That doesn't seem too complex to me."
In a video shared Tuesday, Senate HELP Committee senior health counsel Zain Rizvi further detailed how Moderna has tried to suppress evidence of the U.S. public's massive contributions to the NIH-Moderna Covid-19 vaccine while refusing to share the recipe with South African scientists who are working with the World Health Organization to boost global supply.
The refusal of Moderna and other pharmaceutical corporations to transfer publicly funded technology to qualified generic manufacturers has contributed to global Covid-19 vaccine apartheid, needlessly prolonging and worsening the pandemic.
Although Covid-19 jabs have been credited with preventing roughly 20 million deaths worldwide in 2021 alone, researchers estimate that 1.3 million additional lives could have been saved in the first year of the vaccine rollout had shots been distributed equitably. As a result of unequal access to lifesaving Covid-19 vaccines—made worse by corporate-friendly trade rules that protect Big Pharma's intellectual property monopolies and lead to artificial scarcity—one person suffered an avoidable death from the disease every 24 seconds in 2021.
"Moderna has taken a publicly funded vaccine, built on decades of publicly funded research, and used it to maximize their own profits at the expense of public health," Julia Kosgei, policy co-lead for the People's Vaccine Alliance, said Wednesday in a statement. "It's long past time for Stéphane Bancel to be held to account."
"Today's hearing must be the beginning of a conversation about how governments can place public health needs before private profit. That means requiring companies that profit from publicly funded research to share new technologies with the world."
Citing the corporation's latest earnings report, Kosgei noted that "Moderna is spending as much on buybacks and dividends as it is on research and development." She called it "plainly ludicrous to suggest that this is the best way to ensure everyone has access to effective vaccines and medicines."
"This should be a moment of reckoning for Big Pharma," said Kosgei. "Today's hearing must be the beginning of a conversation about how governments can place public health needs before private profit. That means requiring companies that profit from publicly funded research to share new technologies with the world."
Like Kosgei, Rizvi stressed that Moderna's behavior is not unique and called for far-reaching action "to put an end to the greed of the pharmaceutical industry."
That's also precisely what Sanders did during his opening remarks:
In the pharmaceutical industry today we are looking at an unprecedented level of corporate greed—and that is certainly true with Moderna. Today, while 37% of the American people could not afford the prescription drugs their doctors prescribe, 10 major pharmaceutical companies made over $100 billion dollars in profits in 2021—a 137% increase from the previous year. In these corporations, the 50 top executives made over $1.9 billion in total compensation in 2021 and are in line to receive billions more in golden parachutes once they leave their companies. In other words, Americans die because they cannot afford the outrageous cost of prescription drugs, while the drug companies make huge profits.
Further, while many Americans don't know this, the taxpayers of this country have spent many tens of billions of dollars over the past decade to research and develop life-saving medicine. Yet, despite that huge investment, and the vitally important work done by NIH scientists, the citizens of the United States pay far more for prescription drugs than do the people of any other country, in some cases, as much as 10 times more. Unbelievably, there are important drugs on the market today that literally cost hundreds of thousands of dollars.
"What does a lifesaving drug mean for a person who cannot afford to buy that drug?" Sanders asked. "Should people in America and around the world be allowed to get sicker and sometimes die because they cannot afford the outrageous and arbitrary prices that the pharmaceutical industry demands?"
"Do we not need to change the current culture of greed into a culture which understands that science and medical breakthroughs should work for ordinary people, and not just enrich large corporations and CEOs?" he continued.
Sanders urged people "to remember the contributions of great scientists like Dr. Jonas Salk who, in the 1950s, invented the vaccine for polio. Salk's work saved millions of lives and prevented millions more from being paralyzed."
According to the progressive lawmaker: "It has been estimated that if Dr. Salk had chosen to patent the polio vaccine he would have made billions of dollars. But he did not. When asked who owns the patent to this vaccine Dr. Salk said: 'Well, the people, I would say. There is no patent. Could you patent the sun?' What Dr. Salk understood was that the purpose of the vaccine he invented was to save lives, not to make himself obscenely rich."
Salk was not alone, as Sanders explained:
In 1928, Alexander Fleming, a scientist from Scotland, discovered penicillin at St. Mary's hospital in London. Fleming's discovery of penicillin changed the medical world and saved millions of lives.
When Fleming was asked about his role, he did not talk about the outrageous fortune he could have made through his discovery. Instead, he said: "I did not invent penicillin. Nature did that. I only discovered it by accident." He refused to make obscene profits from his discovery.
In 1921, Dr. Frederick Banting along with two other scientists at the University of Toronto invented insulin—an issue we're hearing a lot about today. When Dr. Banting was asked why he wouldn't patent insulin and why he sold the rights to insulin for just $1 he replied: “Insulin does not belong to me. It belongs to the world.”
It has been estimated that Dr. Banting's invention saved some 300 million lives. Once again, a great scientist made it clear that his purpose in life was to ease suffering and save human lives, not to make billions for himself.
"In this moment of excessive corporate greed," said Sanders, "the moral vision of these great scientists is something that we might learn from."
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