As Congress reconvened for a lame-duck session, Iowa’s federal delegation took action on allegations of government employee misconduct and voted on legislation related to Social Security.
U.S. Sens. Chuck Grassley and Joni Ernst, both Iowa Republicans, called this week for additional information on allegations of sexual misconduct reported at federal agencies. On Thursday, Ernst wrote a letter alongside five other senators to Inspector General Jennifer Fain, calling for further investigation and action to address allegations of sexual misconduct at the Federal Deposit Insurance Corporation.
An April 2024 report from the Cleary, Gottlieb, Steen & Hamilton law firm, prompted by a Wall Street Journal investigation, found that one in 10 FDIC employees reported some form of misconduct, in addition to documenting over 500 allegations of harassment or other instances of inappropriate conduct.
“We have completed our review, and find that, for far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct,” the law firm’s report stated. “We also find that a patriarchal, insular, and risk-averse culture has contributed to the conditions that allowed for this workplace misconduct to occur and persist, and that a widespread fear of retaliation, as well as a lack of clarity and credibility around internal reporting channels, has led to an underreporting of workplace misconduct over the years.”
The report said that management’s response to allegations of inappropriate behavior and misconduct has been “insufficient and ineffective.”
The letter from senators, sent Thursday, calls for the FDIC Office of Inspector General, or OIG, to hold a briefing by Dec. 6 on the steps being taken to “ensure all current and former FDIC employees responsible for creating the extremely toxic workplace culture at the agency are fully investigated.”
Ernst has taken earlier action on the allegations, introducing legislation in June that would allow employees who worked at the agency between Jan. 1, 2015 and Dec. 31, 2023 to sue the FDIC. In 2013, she also called on FDIC Chairman Martin Gruenberg to resign.
“The rampant culture of harassment and abuse at Martin Gruenberg’s FDIC frat house is egregious,” Ernst said in a June statement. “Accountability is coming for every member of FDIC leadership who cultivated this cultural rot.”
On Wednesday, Grassley also sent a letter to the FDIC OIG about its work in the case. In the letter to Fain, Grassley asked that the office share information on how it “handles investigations and settlements of sexual harassment claims,” and he called for more “transparency” on how public funds are used to settle sexual harassment cases.
Letters were also sent to inspectors general who oversee and audit departments and agencies such as the departments of Labor, State and Transportation, as well as the Social Security Administration, U.S. Capitol Police and Small Business Administration.
“Inspectors general are responsible for shining a light on government abuse,” Grassley said in a statement. “Of all federal divisions, OIGs ought to be the most forthcoming about potential employee misconduct, but that’s not currently the case. My oversight is aimed at strengthening trust with federal watchdogs to ensure justice for victims of sexual harassment. Even the watchdog needs to be watched.”
Hinson backs Social Security benefits hike for some public sector workers
U.S. Rep. Ashley Hinson voted in favor of a measure Wednesday that would increase Social Security benefits for some public employees and increase benefits to spouses.
The Social Security Fairness Act, passed by the House 327-75 Wednesday, eliminates two provisions related to Social Security benefits. The first provision, the Windfall Elimination Provision, reduces Social Security benefits for people who worked jobs where they did not participate in Social Security payroll taxes and went on to receive pension or disability benefits from their employer. The second provision that would be eliminated is the Government Pension Offset, which reduces Social Security benefits for spouses, widows and widowers who also receive pension checks.
U.S. Rep. Garret Graves, A Louisiana Republican and co-leader of the bill, said on the House floor Wednesday that these two provisions have reduced the income of retired public servants like police officers, teachers and firefighters for decades.
“This has been 40 years of treating people differently, discriminating against a certain set of workers,” Graves said.
Hinson released a statement Wednesday saying that she was involved in efforts to bring the measure to a vote in the House, and “proudly supported it to restore full retirement benefits for public servants and help ensure financial security for millions of seniors who have served our communities.”
“For far too long, public servants like teachers and police officers in Iowa have been unfairly punished through reduced Social Security benefits,” Hinson said in a statement. “Iowans who dedicate their lives to helping others should not have to worry if they are going to receive their full Social Security benefits when they retire.”
Some critics, such as Romina Boccia, director of budget and entitlement policy at the Cato Institute, a conservative think tank, say that removing the provisions would “unfairly benefit public sector workers at a high cost to taxpayers.” In an October blog post, Boccia wrote that the formulas for calculating these benefits should be updated, but that repealing the two measures would be giving “handouts” to public employees.
“Taxpayers will be better served if Congress does nothing, instead of making things worse,” Boccia wrote. “Repealing WEP/GPO would be a costly election giveaway to public sector union members that would increase unfairness in the system by enhancing redistributive features that disproportionately harm younger workers.”
