Senate Commerce, Science, and Transportation (Sullivan): Hearings to examine the nominations of Thomas B. Chapman, of Maryland, to be a Member of the National Transportation Safety Board, Edward Eppler, of Connecticut, to be Chief Financial Officer, Department of Transportation, Karen Jean Hedlund, of New York, to be a Member of the Surface Transportation Board, and Brien Lorenze, of Virginia, and Karen Sessions, of Texas, each to be a Commissioner of the Consumer Product Safety Commission.

Good morning. Good morning. The Senate Committee on Commerce, Science, and Transportation will come to order. Today we'll hear from 5 nominees. Thomas Chapman for another term on the National Transportation Safety Board.

Edward Epler to serve as Chief Financial Officer of the Department of Transportation. Karen Hedlund for another term on the Surface Transportation Board. Brian Lorenz and Karen Sessions to serve on the Consumer Product Safety Commission. Mr. Chapman Chapman, a Democrat nominee, has served on the NTSB since 2020, where he has focused on highway and traffic safety, saying that, quote, "is where our greatest safety challenges lie." Prior to joining the board, Mr. Chapman spent 6 years as Minority Aviation Counsel for this committee, where he worked on bipartisan legislation to reauthorize the FAA, TSA, and NTSB. He previously spent more than 30 years working in the aviation industry.

Mr. Epler, nominated to serve as Chief Financial Officer of the Department of Transportation, has spent decades as an investment banker, including as the global head of aerospace and defense at Goldman Sachs. This private sector experience will be an asset at DOT, and Mr. Epler manages more— a more than one $100 billion annual budget. We know that he can oversee a large and diverse portfolio. Karen Hedlund, a Democrat nominee, has served since 2022 on the STB, which oversees the economic aspects of railroads, including rail mergers. Ms. Hedlund previously spent more than 30 years in private practice as a bond attorney and as a consultant advising state governments on transportation infrastructure projects.

She also served as the Federal Railroad Administration's Deputy Administrator and as the Federal Highway Administration's Chief Counsel. Finally, we have two Republican nominees for the Consumer Product Safety Commission: Brian Lorenz and Karen Sessions. Mr. Lorenz currently serves as the CPSC's Executive Director, where he works with Acting Chairman Peter Feldman to implement a data-first approach to enforcement. Mr. Lorenz has previously worked in data analytics and held senior positions in government. Ms.

Sessions currently serves as a Deputy Assistant Secretary at the Department of Transportation. She also served in the first Trump administration, including as a senior appointee at the Millennium Challenge Corporation, and worked in management roles in the telecommunication industry. She has held elected office in Florida. The CPSC has a straightforward mission: protecting American consumers from unsafe products. But under the Biden administration, the CPSC pursued a radical environmental and regulatory agenda.

One Biden-appointed commissioner claimed that gas stoves posed unacceptable and hidden hazards. And when asked about the CPSC's authority to ban them, he said, quote, Everything is on the table. The Biden administration tried to use the CPSC's regular power— regulatory power to advance the Democrats' long-running war on oil and gas. I'm confident that Mr. Lorenz and Ms. Sessions will help get the CPSC back to doing its job and to refocus it on protecting consumers from unsafe products.

Not advancing the leftist agenda to try to fiddle with the Earth's thermostat. I look forward to hearing from our nominees today. Ranking Member Hickenlooper.

Thank you, Chairman Cruz. Thank all of you for being here. Appreciate your, your time and energy to get here and to testify on these relevant issues. Um, I think we can just go move forward and I'll recognize, well, I got two things to do first. Uh, I want to have a letter here from the National Consumers League, uh, that goes over in some detail, um, some of the issues around facing the consumer protections at various levels.

Um, so I ask that this be, um, uh, uh, read into the record.

You know, I'm trying to remember. This is—. I'm not— I might have to be— wait until after I do my opening remarks to do that properly, but I'll assume it's in the record now. Someone will correct me. Without objection.

Thank you. All right, now I'm going to recognize Senator Welch to introduce our first witness, and thank you for Welcome back to Commerce. Well, thank you very much. It's wonderful to be here with my colleagues on this wonderful committee, and I am here to introduce Ed Epler, the Department of Transportation's nominee to be Chief Financial Officer. Uh, Senator Cruz made some very kind remarks that I endorse about Mr. Epler.

He's got 3 decades of experience, a pilot's license, deep aviation background, and that's going to help him in his position where domestic aviation and innovation continue to be major challenges. For 30 years, Mr. Epler— pardon me— has worked at an executive level with some of the world's, I would say, significant companies. Goldman Sachs, I guess, counts. Is a big enterprise, and he's been very successful there in building their portfolio. But most recently, Ed served as CFO for Beta Technologies in South Burlington, and this is an incredible story about electronic aviation that began in the small state of Vermont.

When Ed was there, it was a $1 billion capitalization company, incredible work done by the leadership there. By the time Ed left, it was $7 billion, and much of that historic feat is, attributable to the very good work that Ed did with the team that he built. And by the way, Beta in Vermont is on track to, to have 2,000 employees by the end of 2027. And I want to thank Mr. Epler for the significant contribution he made in that effort. He's got a big background in aerospace and transportation financing through his work at Beta and, as I mentioned, Goldman Sachs.

And Mr. Epler really understands the needs and the shortfalls of our transportation system, and we all know that that needs attention, especially in rural areas like Vermont. He also is totally focused on innovation and maintaining US manufacturing leadership in the aviation and transportation sectors. So he's got incredible experience. He comes to this at a point in his career where for him it's all about service. It's all about being there for our country, and I want to express my appreciation to Mr. Epler for taking the talents that he's developed over years and applying them to the benefit of all of America.

So it's with great enthusiasm that I introduce Mr. Epler to the committee. Thank you, Ranking Member Hickenlooper. Thank you, Senator Wells. Mr. Epler.

Thank you, Senator, for those very kind words. I appreciate them. So, Chairman Cruz, Ranking Member Hickenlooper, and members of the committee, thank you for the opportunity to appear before you here today as you consider my nomination for the position of Chief Financial Officer of the U.S. Department of Transportation. I'm grateful to President Trump for his trust in nominating me, to Senator Welch, as I said, for those very kind words of introduction, and to Secretary Duffy for his continued faith and support throughout this process. I also want to introduce and thank my daughter, uh, Bee, and her husband, Nick, who are here with me today.

Unfortunately, my two other children could not join us. Uh, one is expecting her third child any day now, and the other lives and works in London. As some of you know, my wife of nearly 36 years passed away recently, so having family support here today means a great deal to me. I'm deeply honored to have been nominated for this position. Sitting before you today on the eve of celebrating America's 250th anniversary of independence, I hope to fulfill the role of citizen-statesman as envisioned by our founding fathers.

The civic ideal calls for successful professionals to step away from private lives to serve the nation, guided by reason rather than personal ambition, and contribute their talents for the good of the nation. In many respects, this opportunity comes at the ideal moment in my professional career, sitting squarely at the intersection of my professional experience and my longstanding passion for aviation. My career spans more than 30 years working alongside some of the world's leading aerospace, defense, and technology companies, and I've served in a variety of senior finance and accounting roles, including as chief financial officer of a high-growth aerospace company, as you just heard, Beta Technologies, and I've spent decades serving as a global investment banker, as you heard, at Goldman Sachs and other Wall Street firms. This background has given me a deep global understanding of the aviation industry through hands-on work with clients across North America, Europe, and Asia. Furthermore, my advisory work in the defense and industrial sectors has allowed me to collaborate closely with some of our nation's major shipbuilders, as well as the engineering and construction firms Driving Transportation Infrastructure Forward.

As the chief financial officer of a high-growth, high-tech aerospace company, I managed budget development and execution, oversaw financial performance, ensured robust financial reporting and adherence to strict internal controls. I also led extensive capital raising initiatives and managed large capital projects. Crucially, this background gave me a firsthand look at the advanced air mobility industry. Especially the technological, regulatory, and global competitive shifts impacting the FAA and DOT today. I believe this exact blend of fiscal discipline and industry insight will be highly valuable as the department's next CFO.

On a personal note, I spent nearly 30 years working in New York. I have a deep familiarity with some of our nation's busiest and most vital transportation assets., which include a dense network of roads, bridges, tunnels, rails, and transit systems. And conversely, as you just heard from Senator Welch, I spent 4 of the past 5 years living and working in Vermont. And this time in northern New England has given me firsthand appreciation for the distinct challenges faced by rural communities, where a lack of sufficient infrastructure can directly impact economic opportunity. Finally, as an instrument-rated private pilot, I understand how our complex national airspace operates.

It leaves me with a profound commitment to air traffic modernization and the criticality of ensuring aviation safety for all— everyone in this nation. If confirmed, I commit to working collaboratively with members of this committee to ensure that the nation's highest priority transportation goals are met. I will focus my office on accelerating project delivery, wherever possible, and ensuring robust financial oversight. I look forward to working with Secretary Duffy, President Trump, and members of this committee to make our world-class transportation infrastructure work for America. Thank you.

I look forward to your questions. Thank you, Mr. Epler. Mr. Chapman. Good morning, Senator. Good morning, Senator, members of the committee.

Senator, I'm born and raised in beautiful state of Colorado, so I consider it a particular privilege to have you presiding this morning. Thanks to all of you for the opportunity to appear before you. I'm honored to be nominated by the President to serve a full second term as a member of the National Transportation Safety Board. I very much appreciate the support of NTSB Board Chair Jennifer Homendy, who is here with us today. Likewise, I thank my colleague, Board Member Michael Graham, for being here and for his support.

And I'm grateful to my remarkable colleagues at NTSB for all they do to promote safety in transportation. My work as a board member has been a rewarding opportunity to apply my experience and skills in a role allowing me to give back through public service. I know you won't mind if I say a few words about the two people most important to me. My wife, Scotty O'Connell, is here and by my side. Scotty is my partner and my best friend, and she has been with me these past 40 years.

Our terrific son Patrick is watching online from Great Britain. Patrick recently graduated with his master's degree from the London School of Economics. He's now seeking to begin his professional career, and because he's very much enjoyed his time in London, He is hoping he might have an opportunity to remain and work here for— work there for the next few years.

Senator, my nearly 5 decades of experience, much of it in the aviation industry, have prepared me well for the tasks I find so fulfilling at NTSB. Throughout my career, I have been deeply involved in an extensive range of issues, often playing a key role in identifying and negotiating resolutions. Virtually every aspect of aviation involves considerations of safety. Consequently, I came to NTSB with a keen awareness and sensitivity to the importance of safety culture. I have sought to apply that perspective to my work as a board member in pursuit of the critical safety mission of the NTSB.

In addition to my experience, I bring at least two qualities to the position which I believe are valuable. First, I benefit from an established reputation for collegiality and consensus building. Second, I am committed to public service, and I believe that much is expected from those who are most fortunate. I am an aggressive advocate for the policy positions I am professionally obliged or personally committed to represent. However, I strive to demonstrate respect and appreciation for the views of those with whom I may disagree.

I believe in compromise, and I take pride in crafting solutions, solutions that will accommodate seemingly conflicting points of view. As for my commitment to service, I view it as a responsibility for those who are fortunate to have prospered from professional life in the private sector. Immediately prior to joining NTSB, I was privileged to serve for 6 years on the staff of the Senate Commerce Committee. In 2014, I left the airline industry and I joined the Aviation Subcommittee staff in anticipation of the major legislative effort required to reauthorize the Federal Aviation Administration. Throughout my years with the committee, I worked collaboratively with the bipartisan Senate team, and our efforts resulted in passage of several significant legislative achievements.

As an NTSB board member, I devote much of my attention to traffic safety because, as Chairman Cruz noted, I believe that is where our greatest safety challenges lie.

I speak extensively on the Safe System approach to traffic safety, pedestrian safety, alcohol and drug impairments, and rail worker and highway rail grade crossing hazards. I am especially active on key initiatives to address two stubbornly persistent challenges: alcohol impaired driving and excessive speed. I am proud of the important public policy accomplishments to which I have contributed as a former member of the Commerce Committee staff and since joining the National Transportation Safety Board. I welcome the prospect of building on these efforts through additional service as a member of the Board. That concludes my formal remarks, and I'm happy to respond to questions.

Thank you, Mr. Chapman. Now I get to introduce Ms. Hedlund, who's a resident of Colorado.

Thank you, and the members of this committee, for the opportunity to appear before you today as the President's nominee for a second term on the Surface Transportation Board. I also want to thank my family, my sons Eric and Alex, their remarkable wives, and my grandchildren Mira, Leo, and Soleil, who I wish had come today, but they would have been a bit of a distraction.

But they're all tuning in out there in Radioland somewhere. I am also honored today to be joined by my fellow board members, Chairman Fuchs and Vice Chairman Schultz, whom I've had a great, great pleasure of working closely with over the last 4 years. My experience in serving on the board since January of 2022 has been one of the most fulfilling of my fairly long career.

As Chairman Cruz mentioned, I spent most of my life as a project finance attorney, a bond lawyer, which meant I could work on projects all over the country advising state and local governments, including most of the states represented by members of this committee. In Texas, I worked on a privately developed toll road, I-35. I worked on an Anchorage airport matter.

In the state of Colorado, before I joined the Department of Transportation, I worked on I-470 and the T-Rex project, and then in between DOT and here, I advised on the Front Range project. Which I'm happy to see is going forward. And in the state of Delaware, Senator, I had the privilege of advising the Secretary of Transportation on how to structure P3 projects. And in Minnesota, I also advised on some highway projects in the Senator's great state.

I began my federal government career in 2009 when I first served as Chief Counsel of the Federal Highway Administration and then moved over to the Federal Railroad Administration as Chief Counsel and Deputy Administrator. And one thing I want to mention is that I served under Secretary Ray LaHood, a great Republican from Peoria, Illinois, and learned a lot about the value of bipartisanship, which I carry with me today. And I remember on late night, one of the late night programs, the Secretary was asked, you know, how could you as a Republican serve for a Democratic president? And he said, I have a lot of money and they're all my friends.

So I returned to the private sector, 2015, where I worked on the beginning of the Northeast Corridor Gateway Project and the Portland and Seattle to Vancouver Rail Project in the Pacific Northwest. And then in 2021, this committee advanced my nomination for my first term on the board. And I have to say, what a ride it has been. Beginning— at the beginning of my first term, it coincided with a service crisis that beset the railroad industry, which impacted the nation's supply chain, and our Chairman served on the President's Supply Chain Council. And during several public hearings that we had on that matter, that problem, the Board's focus was on improving rail service, strengthening competition, and increasing transparency across the network.

People need to know where their cars are. Uh, the Class I railroads acknowledged that the service challenges had been exacerbated by a fairly deep workforce reduction that they had engaged in, uh, prior to the crisis, uh, and, uh, had trouble, um, getting back up to speed when, after, uh, COVID, traffic came back faster than they expected.

But what we did is to require them to give us more detailed service reporting, data-driven recovery plans, and greater public visibility into their operations. And these measures have contributed, I believe, to improved performance and clear accountability, which we get from them today. At the same time, we addressed competition issues and expanded transparency, did an investigation into Amtrak's on-time performance, and then the largest railroad merger since 2001 at the time, CPKC, Canadian Pacific and Kansas City. I also want to mention how we are handling all this very important work of the agency with a relatively small but very capable staff. Which under our current chairman, we have reorganized the efforts, particularly of our legal staff.

So the last thing I want to say is that in everything we do, we take guidance from the federal rail transportation policy set forth in 49 U.S.C. 101.01, Which instructs us that in regulating the railroad industry, it is the policy of the United States government, among other things, to ensure the development and continuation of a sound rail transportation system with effective competition among rail carriers and with other modes to meet the needs of the public and the national defense. So, um, as a result of all of this, I would consider it a great privilege to, uh, be able to continue to serve the public interest and the national defense through a second term on the STB, and I look forward to your questions.

Thank you. Mr. Lorenz, you are recognized for your opening statement. Good morning, Chairman Cruz, and distinguished members of the committee. I'm honored and humbled by President Trump's nomination to serve as Commissioner of the Consumer Product Safety Commission. Before going forward, I would like to recognize my wife, Catherine, who is my strongest supporter and is the love of my life.

Our children, Chloe, George, and Eloise, are our greatest pride and joy, and I count myself very blessed every day. My experience in public service has prepared me to serve as Commissioner. Uh, as the current Executive Director, I have gained a deep understanding of the agency's mission, statutory responsibilities, and the challenges of protecting consumers in a complex and rapidly evolving marketplace.

The mission of CPSC is critically important because consumer product safety affects every American every day. Effective consumer protection prevents injuries and saves lives while strengthening public confidence in the products consumers use and supports a fair, predictable marketplace for responsible businesses. Since I joined CPSC under the leadership of Acting Chairman Peter Feldman, and through the hard work of CPSC's men and women, the average number of monthly recalls is up 73%. The average number of monthly unilateral warnings is up 159%. The average number of monthly product screens at ports of entry is up 20%, and the average number of monthly takedowns is up 208%.

If confirmed, I hope to build on these successes. Throughout my career, I have led organizations responsible for managing risks, improving performance, and making evidence-based decisions. As a Commissioner, I would use that experience to help ensure the agency remains an effective, accountable, and trusted consumer protection organization that delivers impact within the limits of its statutory authorities. If confirmed, I would focus on 3 priorities that are central to advancing CPSC's mission. First, I would prioritize addressing hidden and complex hazards that consumers cannot reasonably identify or avoid on their own.

Many of the most serious risks stem from design flaws, manufacturing defects, and other hazards that require specialized expertise to detect. Second, I would focus on strengthening CPSC's use of data analytics and technology to identify hazards earlier, improve enforcement, and target resources. Advanced analytics will move the agency from a reactive approach to one that prevents injuries before they occur. Third, I would focus on ensuring CPSC keeps pace with innovation and emerging product risks. New technologies, advanced materials, connected devices, and energy storage systems offer significant benefits but can also create new safety challenges.

The Commission's mission is simple but profoundly important: protecting Americans from unreasonable risk of injury. If confirmed, I will work every day to ensure CPSC carries out that mission with integrity, sound science, and a relentless focus on results. Thank you for the opportunity to appear before you today. Thank you. Ms.

Sessions, you're recognized. Chairman Cruz, Ranking Member Hickenlooper, and distinguished members of this committee. I am honored to appear before you today and profoundly grateful to President Trump for nominating me to serve our country as a commissioner of the Consumer Product Safety Commission. I also want to thank my husband Pete and my family, our 5 sons, for their unwavering support throughout my career and public service. The CPSC mission is to protect the public against unreasonable risks of injuries associated with consumer products.

This is deeply meaningful work that affects millions of families every day and requires decisions grounded in facts, Evidence and the Law. Throughout my career in both government and the private sector, I have held leadership roles involving organizational oversight, technology regulatory matters, and public accountability. Those experiences have prepared me to address the challenges facing the Commission, including increasingly complex global supply chains, the growth of e-commerce marketplaces, and the expanding range —of new and emerging products entering American homes at an accelerating pace. If confirmed, I will approach this role with integrity, sound judgment, and respect for the authorities Congress has entrusted to the Commission. I will work collaboratively with my fellow Commissioners, agency staff, Congress, and stakeholders to advance the mission and ensure the agency remains an effective steward of the public trust.

Thank you for the opportunity to appear before you today, and I look forward to your questions. Thank you, and welcome to each of the witnesses. Uh, Mr. Chapman, let's start with you. Yesterday, the Aviation Subcommittee held a hearing on near misses. It discussed existing technologies that improve safety both in the sky and on the runway.

Captain Jason Ambrosi, the president of the Airline Pilots Association, noted that ADS-B in has long been recommended by the NTSB, is a proven technology in use, and has the benefit of significantly quicker adoption to save lives. In your judgment, would equipping aircraft with ADS-B In improve situational awareness in the cockpit, and would it improve safety overall? That is absolutely my belief, Mr. Chairman. The NTSB has recommended users of the National Airspace System be equipped with ADS-B In. Where ADS-B Out is already required.

Why is it critical for all users of the airspace, including the military, to operate with ADS-B In? It's essential that all the aircraft operating in particular airspace be seen and also be able to see each other. And that is the, the, the reason that that element of the recommendation is so important, that all aircraft operating in that aircraft should be equipped. Now, I know you've seen the video recreation of the crash over DCA that is overlaid with the communication with the cockpit. I played that video for members of this committee.

Unfortunately, we could not play the audio publicly because of existing laws that prohibit the release of cockpit communications. That being said, I found it one of the most chilling things I've ever seen. In the video, you can clearly see that the American Airlines pilot cannot see the Black Hawk helicopter, and the Black Hawk helicopter cannot see the American Airlines jet. The video demonstrated, had ADS-B In been installed, the American Airlines pilot would have seen the Black Hawk helicopter roughly a minute before the collision and would very easily have avoided the helicopter in that circumstance. Likewise, The helicopter pilot would have seen the jet almost a minute before the collision, and again, could have easily avoided the collision.

Instead, as the simulation plays forward, it is apparent that the Black Hawk helicopter pilots never see the plane. They simply strike into it, explode, and die, and they have no idea what they just hit. The American Airlines pilot does see the helicopter, about a second and a half before impact, pulls back on the stick rapidly. The plane jerks up, but a second and a half is not time to avoid the accident. Uh, the last words on the cockpit recording are an expletive as 67 souls died in an instant.

In your judgment, if ADS-B In had been installed and on in those two airplanes, would that accident have been avoided? Senator, I do want to note to start that I was required to recuse myself from that investigation because of arrangements much earlier in my career involving American Airlines and my continuing flight privileges. Having said that, I followed the investigation very closely. I'm well aware of the, the, what you just described, and I do believe, I believe ADS-B in would have made a huge difference. By the way, I commend you and I commend the members of the committee for your work in advancing this.

I believe that is the centerpiece of the recommendations that were made as a result of our investigation. I fully agree. The Senate has passed the Rotoract bipartisan legislation 100 to nothing. The House, two-thirds of the House, has voted for it, a bipartisan vote. It failed by a single vote because 26 House members were absent the day of the vote.

We're gonna get the ROTOR Act passed, and I would note the House's ALERT Act deliberately avoids requiring ADS-B in. It deliberately avoids what you rightly described as the centerpiece of the NTSB's recommendations. The House's ALERT Act would not have prevented the accident over DCA. We will get the ROTOR Act signed into law. Uh, let me turn to another topic, Mr. Chapman.

Autonomous vehicles have the potential to dramatically improve road safety. However, the federal government lacks regulations that specifically address AVs, leaving states and local governments to manage what should be a national policy. Do you believe we need a national policy to regulate AVs? I certainly do, and we are seeing benefits from autonomous vehicles. I believe we will see more.

And automation generally in our automobiles has, has done a lot to help improve safety. But there are some significant issues, and we do not have a framework at this point for ensuring that the challenges of deploying these vehicles are properly managed and monitored. So I think it's very important that we have a federal policy in that regard. Thank you. Senator Baldwin.

Thank you, Mr. Chairman. Um, thank you, Ms. Hedlund, for meeting with me, uh, uh, last week. Um, as you heard, I'm very concerned about the merger, uh, between Union Pacific and, uh, North, uh, Southern as proposed, especially in light of some recent comments made by UP's CEO, Jim Vena. Um, Mr. Vena, uh, speaking to investors just a week ago, argued that, uh, statute requires the STB to complete its review within 12 months of accepting an application and that that clock is already running. He then said that if the board does not follow that 12-month requirement, then, in his words, UP and NS does not have to follow the statute either, in reference to the public interest requirement.

Ms. Hedlund, can you clarify, is it the applicant's burden to prove, to prove that this merger is in the public interest, something that they can just switch off if they disagree with the board's timeline? Is that something they can do?

Senator, I don't want to comment on the substance, as you know, of the matter because it's pending before the board, because to do so might prejudice one or more of the parties. Yeah, so I don't want to ask you a substantive question. But the statute requires that any combination or acquisition be in the public interest. Thank you. That is the statutory standard.

Okay. The STB's post-2001 major railroad consolidation procedures places a heightened emphasis on whether Class I railroad mergers enhance rather than merely preserve competition. Will you commit to following the comprehensive evaluation required by these updated standards when evaluating the merger? Yes, I do. Thank you.

And then I wanted to raise something else that Mr. Vina has been saying as he seeks approval of this railroad mega merger. My office has received reports that Mr. Vina and Union Pacific are threatening retaliation against anyone who publicly opposes the merger. So I want your commitment to ensure that shippers, unions, shortlines, and other stakeholders can participate freely and openly in the STB's merger review process without fear of retaliation. Can I have that commitment? Yes, Senator, you do.

And, uh, I would like to say any kind of retaliation against shippers or other parties to a proceeding would be utterly unacceptable. Thank you. Mr. Epler, funding in the bipartisan infrastructure law is available only for a limited window before it lapses. Fiscal year '23, uh, 2023, RACE grants, including awards to Wisconsin's Department of Transportation, Milwaukee and Kenosha, Wisconsin, must be obligated through an executive grant agreement by September 30th of next year, 2027. Last year, the Government Accountability Office found that the Department of Transportation had obligated only 59% of its available Bipartisan Infrastructure Law grant funding, the IIJA— or I— yes, IIJA grant funding.

The chief financial officer is the department steward of these dollars. If confirmed, will you commit to carefully tracking these obligation deadlines, flagging awards that are at risk of lapsing, and working across the department's subagencies that grant funding so that grant funding gets out the door before it expires? I will, Senator.

I will, Senator. I'm well aware that there's a backlog of grants that need to be released and will absolutely commit to working with you and your office to see what the status is of each of those and the transparency in the process. Great. If confirmed, will you also commit to giving this committee a regular public accounting of how much IIJA grant funding remains unobligated and how close each year's funds are to their deadline. So, uh, yes, Senator.

So one of the things that I'm keen to really dig into is to understand what is the status of grants that were obligated and where they stand, and if that— if they're going to be impacted by the expiration of the IIJA. So, it's a big task, but I'm certainly committed to digging in. Thank you. Last question. I'm very concerned about the efforts of President Trump to remove the heads of independent agencies in opposition to longstanding Supreme Court precedent.

So, um, Mrs. Sessions and, uh, Mr. Lorenz, if confirmed, um, will you take directives from the White House, or will you use your independent judgment on matters that come before the Commission. Mr. Lawrence?

Yeah, we'll use our independent judgment. And Mrs. Sessions? I will use my independent judgment. Thank you.

Thank you. Mr. Chairman, I yield. Thank you, Senator Blunt Rochester. Thank you, Mr. Chairman and Ranking Member Klobuchar.

And thank you to all of the nominees and your families, both in the room and also watching live around the world. Thank you for participating as well. We have a lot of ground to cover, so let's get started. Member Chapman, I understand that you weren't involved in the tragic DCA midair collision investigation, but that you are fully supportive of the final recommendations, correct? That is correct.

Thank you for confirming that. And you've touched already on this with Senator Cruz and his questions, but for everyone watching here today, can you please identify the most urgent recommendation from the final report in your estimation? Yeah, absolutely. The, the centerpiece of the, of the recommendations— and we made, I believe, 50 recommendations, NTSB made 50 recommendations— but the centerpiece is absolutely one recommending requiring ADS-B In in all airspace where ADS-B Out is currently required. Thank you.

Um, that is why, as was said by our chairman, it's so important that we push for the path forward with the House to pass the bipartisan ROTAR Act, uh, which implements the NTSB's recommendations to, um, to close safety gaps and address systemic failures. Uh, it's a mission-critical focus, and we owe it to the victims' families, in particular to get this right. Member Chapman, I'd also like to stay with you and shift to the Key Bridge collapse in Maryland where 6 construction workers lost their lives. As a result of the investigation, the NTSB published the Safeguarding Bridges from Vessel Strikes: Need for Vulnerability Assessment and Risk Reduction Strategies report. Report.

The report found that 68 bridges, including 3 in Delaware, have an unknown level of risk of collapse from a vessel collision. I understand that the NTSB has received responses from bridge owners based on these recommendations as they develop risk reduction plans. What should Congress do to support the NTSB's recommendation and bridge owners to ensure our bridges meet the highest safety standards? Thank you, Senator. It's a good question.

First of all, it's certainly my impression that bridge owners are responding to the recommendations we made in this area. Now, there's work to be done there, and it's not uniform across the board, but we are encouraged by the response. I think what Congress can do in the surface transportation legislation coming up, maybe a good place to do that. Just ensure that, that there's reinforced— reinforcement of the concern about bridge protections included, and continue to monitor that and engage in some oversight over those issues. It is very important, as we saw with the Key Bridge collapse— very tragic that we lost any lives.

It could have been so, so much worse, and we don't want to see that kind of tragedy repeated elsewhere. Thank you. I'm going to shift to Ms. Sessions and Mr. Lorenz. The rapid growth of online marketplaces, increasingly complex supply chains, and rapidly evolving technologies have transformed how Americans purchase consumer products and created new challenges for consumer safety regulators.

That's why Senator Curtis and I introduced the bipartisan Consumer Safety Technology Act, which would establish a pilot program to explore how artificial intelligence could help the CPSC identify emerging hazards, detect recalled products being sold online, and better target unsafe imports. If confirmed, how would you leverage technology and data analytics to modernize the CPSC and better protect consumers in an increasingly complex marketplace?

Senator, thank you very much for your question, and you are certainly highlighting a very important and accelerating issue, which is the sheer volume of consumer goods that are entering the country at an accelerated pace. I believe that the Commission through data-driven risk assessment decision-making. It's very important for the modernization of the tools to be able to do targeted inspection enforcement to the standards that exist, and I would look forward to bringing my skills to that effort. Thank you. Mr.

Sessions.

Thank you, uh, thank you for your question. Yes, this is an important topic, one that we're paying a great deal of attention to, and we are doing a lot to to use data for evidence-based decision-making. One of our great achievements in the last year has been to use, better use data when it comes to death certificates. We were getting death certificates up to 3 years after the fact. We are now, for more than half the states, getting it in near real time.

It was taking us about 4 months to get that data into our system. We're now getting that data into our system in minutes. We are vastly increasing the use of data. Also, the number of takedowns that I mentioned, the 208% increase in, in takedowns is largely due to the way that we are marrying both humans and our staff with AI to identify where there are dangerous products sitting out there in the ecosystem. Thank you so much.

I think this is one of the issues that it's touching everybody. I mean, we're shopping online, we're doing all these things. Sometimes people don't even know what's unsafe. And as you mentioned, even getting that real-time data back is important to be able to provide that consumer protection. So I hope our committee will have an opportunity to consider our bipartisan Consumer Safety Technology Act this summer.

And thank you, Mr. Chairman, and I yield back.

Thank you. A few more questions for the witnesses. Mr. Lorenz. As the executive chairman of CPSC, you have had a front-row seat to Acting Chairman Feldman's crackdown on illicit products and the Commission's approach to the digital environment. The agency recently issued its 100,000th takedown notice for recalled or banned products listed online.

In your view, how should the CPSC think about the regulation of products with an artificial intelligence component, such as an AI-powered lawnmower or toy, the CPSC should focus on the physical components of the product. Is that correct? That is correct. That is where, that is where our authorities lay. Uh, we think this is an important topic, one that these products are going to be innovating.

There's going to be many more products that have AI components to them. We need to be attentive to that and vigilant. And we look forward to working with you and members of the committee to address what we see in the data in terms of the emerging risks that appear. So elaborate on what that would mean in practice. So, so for example, we, we will look at where we're going to start getting into pro, you know, being able to look at data, large amounts of data, parsing through it and identifying signals of where there is actually products that are causing death or hazards.

As we zero in on that, we'll be able to assess that and come back to you and, and be able to show where there is an AI component that may be leading to physical injury. And if so, we have the, uh, the authorities to deal with physical injuries today. Physical injuries, but from the physical components? That's correct. Uh, Ms. Hedlund, the STB's merger rules require applicants seeking approval of major Class I rail mergers to demonstrate that such merger will, quote, enhance competition.

What factors or evidence are relevant to whether a merger enhances competition? Senator, thank you. If you can turn your microphone on. Thank you for the question, and it is a key provision in the regulations that were adopted in 2001. However, those regulations have not been applied in any case before the one that is currently pending before us.

We have recently asked the, the applicants to give us more information on their view of how they would enhance competition. I'm sure we'll receive comments from other parties, but I really hesitate to to comment further on an issue that I think will be subject to some discussion in the proceeding.

I assume evidence that the merger would result in an increase in price to customers would be powerful, if not compelling, evidence on the question of whether it is competition enhancing. Uh, that would be an issue that I would not be surprised that parties would raise.

The railroad industry, the Class I railroad industry, is highly concentrated today. We have, you know, duopoly in the East, duopoly in the West, duopoly North and South, and how we maintain competition in a concentrated industry is going to be a matter of significant concern for us.

Mr. Epler, you recently worked at a leading advanced air mobility company. If confirmed, you will join the Department of Transportation as it implements the most ambitious air traffic control modernization project in decades. How will your experience in the private sector inform your approach to managing the finances of a large government agency like the Department of Transportation?

Senator, thank you for the question. Modernization of air traffic control is an enormous priority for our nation, and it's an enormous project. There are hardware and software elements. What I would say is, first and foremost, just associated with any project, you have to make sure that you have very clear, you know, performance indicators, KPIs, you have very clear timelines, very clear budgets. And then you track that extremely closely and hold the people who are responsible for the implementation of it accountable.

One of the things, as you mentioned my experience with advanced air mobility, our airspace is changing and we're seeing, you know, the introduction of new types of aircraft and including some that may be remote piloted, autonomous, maybe other kinds of systems. And I think one of the things we want to think about is this is such a major lift that we're prepared for the future. And so not just do we have the best technology today, but how will we design systems that could incorporate changes in technology? So, um, as someone who's managed large budgets and large capital programs, uh, I'm, you know, committed to bringing financial rigor to the way that we do this. Personally, as a pilot, I'm committed in wanting to see this happen broadly across the nation as quickly as possible.

And I think my experience in the AAM industry has given me a good understanding of what's to come and what we need to be doing so it be future-proofed. Thank you, Mr. Chapman, Mr. Epler, Ms. Hedlund, Mr. Lorenz, and Ms. Sessions. My final question is required of all nominees. If confirmed, do you pledge to work collaboratively with this committee to provide thorough and timely responses to this committee's requests and to appear before the committee when requested?

I do, Mr. Chairman. Yes, absolutely. I do. I do. Chairman, yes.

Thank you. Thank you. I have letters of support from various organizations for Ms. Hedlund, Mr. Lorenz, and Ms. Sessions nominations that I ask unanimous consent to be inserted into the hearing record. Without objection, so ordered.

Senators will have until the close of business on June 26th to submit questions for the record. The nominees will have until the close of business on June 30th to respond to those questions. And that concludes today's hearing. The committee stands adjourned.