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2018年9月4日 星期二

Hillicon Valley: Twitter, Facebook execs to face grilling | How hackers are targeting reputations on review sites | Agency to create privacy framework | Amazon hits $1T in market value | Twitter says Trump not exempt from being banned

 
 
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Welcome to Hillicon Valley, The Hill's newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley.

Welcome! Follow the cyber team, Olivia Beavers (@olivia_beavers) and Jacqueline Thomsen (@jacq_thomsen), and the tech team, Harper Neidig (@hneidig) and Ali Breland (@alibreland). And CLICK HERE to subscribe to our newsletter.

 

DORSEY AND SANDBERG'S BIG DAY ON THE HILL: Top executives from Facebook and Twitter are expected to face a grilling from Capitol Hill lawmakers in two separate hearings on Wednesday covering alleged anti-conservative tech bias and foreign governments manipulating social media platforms to influence U.S. politics.

Twitter CEO Jack Dorsey and Facebook Chief Operating Officer Sheryl Sandberg are set to undergo the biggest political tests of their careers as they face lawmakers for the first time in a public congressional hearing.

Republicans on the House Energy and Commerce Committee are likely to come at Dorsey with knives out over how conservatives have allegedly been suppressed on Twitter.

At the Senate Intelligence Committee hearing, lawmakers on both sides of the aisle will demand answers on how Facebook and Twitter are making their platforms safer from foreign interference as the November midterms approach.

The stakes will be particularly high for Dorsey, who will testify alone at the House Energy and Commerce hearing on anti-conservative bias following morning testimony alongside Sandberg on the Senate side of the Capitol. Without any tech allies by his side, Dorsey runs the risk of becoming a punching bag for House GOP lawmakers have a long list of grievances against Silicon Valley in general.

House Republicans plan on asking about Twitter's past snafus, which they believe indicate a clear pattern of conservative bias, such as not displaying some conservatives in the platform's drop-down search results and Twitter downranking a hashtag disparaging Hillary Clinton during the 2016 presidential campaign.

GOP members of the House panel, led by Chairman Greg Walden (R-Ore.), also want to highlight high-profile anecdotes that suggest Twitter temporarily silences more Republicans than Democrats, despite any data supporting accusations of systematic bias against conservatives.

"The bottom line is there are more censorship errors with high-profile Republicans to point to than with anyone on the left," a congressional staffer told The Hill. "Twitter has chalked that up to mistakes. Whether bias is intentional or not, even a well-intentioned algorithm can have consequences."

 

What Sandberg needs to do: Sandberg's job is easier than Dorsey's. Facebook has made a show of working to curb foreign misinformation efforts and lawmakers have responded more favorably than negatively. All she has to do is keep that up and Facebook is likely to walk away unscathed, and unlike Google, have possible earned some goodwill for showing up.

 

What Dorsey needs to do: Even if the Twitter CEO can walk out of the Senate Intel hearing in the morning unscathed, he's certain to be put through the wringer by the Energy and Commerce Republicans in the afternoon. Republicans have indicated they are not pleased with how Twitter is handling their concerns on the bias front. They've been blasting Dorsey, including on Twitter, and will air those concerns directly.

Watch closely for Rep. Marsha Blackburn's (R-Tenn.) line of questioning. She's had a beef with Twitter ever since they temporarily banned one of her campaign videos from being promoted.  

 

Snippet from Sandberg's prepared remarks: "This is an arms race, and that means we need to be ever more vigilant," she says in her prepared remarks, provided to The Hill, about foreign interference. "As Chairman Burr has noted, 'Nothing less than the integrity of our democratic institutions, processes and ideals is at stake.' We agree, and we are determined to meet this challenge."

 

GOOGLE SUBMITS SENATE INTEL TESTIMONY: Google executive Kent Walker has submitted testimony on the company's ongoing efforts to combat foreign influence operations ahead of a Senate Intelligence Committee hearing on the subject.

In a written statement, Walker emphasized that the company has taken action to reduce the threat of foreign influence operations beyond the Russian campaign that sought to meddle in the 2016 election and is committed to working with members of Congress and others in the private sector "to address abuses that undercut the integrity of elections."

The Senate committee will publicly grill executives from Twitter and Facebook on Wednesday as part of its broader inquiry into Russian election interference.

Read more here.

 

And if you missed them, here are two more stories about the growing tech vs. GOP fight.

 

TRUMP ATTACKS RATTLE TECH: President Trump's attacks on the tech industry are putting Silicon Valley on the defensive.

Trump and congressional Republicans are hammering web and social media companies for what they see as bias against conservatives. But that push is opening the door to scrutiny over other issues as well and emboldening those who have sought tighter regulations on the industry.

Trump last week blasted Google, accusing the search giant of censoring right-wing media outlets and promoting news sites critical of his administration. The president posted a video that purported to show Google's homepage linked to former President Obama's State of the Union addresses, but not his.

The clip was quickly and widely debunked and Google issued a statement denying that it skewed its search results in support of "any political ideology."

But Trump broadened his attack, warning Facebook and Twitter, that like Google, they were "treading on very, very troubled territory."

Republicans and tech have long sparred over allegations of bias. But Trump's remarks mark a new escalation and are ramping up the pressure the industry is facing.

Read more here.

 

MCCARTHY VS. SILICON VALLEY: House Majority Leader Kevin McCarthy is leading the charge against President Trump's new favorite punching bag: big tech.

The California Republican, who hopes to replace Speaker Paul Ryan (R-Wis.) next year, has been aggressively promoting a campaign to "stop the bias," referring to what critics say is a pattern of discrimination against conservative voices on social media.

"I've had many conversations with the president about how we have to stop this bias," McCarthy, one of Trump's closest allies on Capitol Hill, told Fox News on Thursday.

"I've spoken to Jack Dorsey throughout the month," McCarthy added. "He and I philosophically disagree, but we do agree on one thing: We believe in the First Amendment. But we also believe in transparency and accountability."

The majority leader's recent crusade against social media comes at a time when Trump has ramped up his own rhetoric against the tech industry. His eagerness to champion the cause could endear him to both the White House and conservative lawmakers -- two constituencies that could be crucial to securing the Speakership. 

Read more here.

 

BEWARE THAT YELP REVIEW: Hackers are increasingly attempting to extort companies and individuals by threatening severe reputational harm through online reviews sites such as Yelp and TripAdvisor, security experts tell The Hill.

While internet extortion schemes are not new, their perpetrators now appear to be spamming sites where enough negative reviews can scare away firms' customers.

"It is definitely an increase that we see -- that more and more hackers are misusing the whole brand reputation and any type of review process to blackmail and extort companies," Candid Wueest, a Symantec threat researcher based in Europe, told The Hill. "Of course the same would be harmful for anyone who has an online profile such as hotels -- we've seen it with restaurants as well, like TripAdvisor or Yelp."

On Sunday, a group of hackers emailed CheapAir, an online travel agency, threatening to "destroy personal or company reputation online" if the company did not pay 1.5 bitcoins, roughly the equivalent of $10,000, by Wednesday.

The hackers, who claimed they worked for the "STD Company," said they are "experts in destroying personal and company reputation online," according to screenshots of the emails provided to The Hill.

They threatened to harm the business by posting thousands of negative reviews, replies and fraud reports on sites such as TrustPilot and Ripoff Report, as well as on social media.

"If not, we will proceed with our work and you should understand that damage once made can't be undone, not even by us," they wrote. 

Read more here.

 

HEY, THAT'S PRIVATE!: The National Institute of Standards and Technology (NIST) announced Tuesday that it will begin to create a framework to guide organizations on how they can protect the information of individuals using their products or services.

The non-regulatory agency, responsible for setting scientific standards and housed in the Commerce Department, said in a release that the privacy framework would be based off the framework it previously established for cybersecurity issues.

"Consumers' privacy expectations are evolving at the same time that there are multiplying visions inside and outside the U.S. about how to address privacy challenges," Naomi Lefkovitz, NIST senior privacy policy advisor and lead for the project, said in the release.

"NIST's goal is to develop a framework that will bridge the gaps between privacy professionals and senior executives so that organizations can respond effectively to these challenges without stifling innovation." 

Read more here.

 

TRUMP REVIVES ATTACK ON NBC 'LICENSE:' President Trump is reviving his threat to see NBC's broadcasting "license" challenged, attacking the network's "journalistic standards" following reports that it had passed on a damning exposé about Harvey Weinstein.

"NBC FAKE NEWS, which is under intense scrutiny over their killing the Harvey Weinstein story, is now fumbling around making excuses for their probably highly unethical conduct," the president tweeted on Tuesday.

"I have long criticized NBC and their journalistic standards-worse than even CNN. Look at their license?" he added.

Trump has directed similar attacks at NBC and other outlets last year over critical coverage. But in reality, there is little that he or his administration could do to carry out the threat.

 

Why? The Federal Communications Commission (FCC) is in charge of issuing broadcasting licenses, which are granted to individual stations instead of networks like NBC. Moreover, FCC Chairman Ajit Pai repeatedly said last year that the agency would not revoke those licenses on the basis of a station's content. A spokeswoman for Pai did not immediately respond when asked for comment on Tuesday.

Read more here.

 

AMAZON HITS $1 TRILLION: Amazon briefly exceeded $1 trillion in value Tuesday amid growing criticism from President Trump, becoming the second U.S. corporation to reach that threshold.

The online retail giant eclipsed the $1 trillion mark Tuesday morning when the price of one of its 487,741,189 shares rose to $2,050.27, according to CNBC. The stock value slipped to close at $2,039.51, but was still up 1.33 percent for the day.

Apple was the first U.S. corporation to exceed $1 trillion in value when it crossed the threshold on Aug. 2. The combined value of both companies is equal to roughly 10 percent of U.S. gross domestic product.

Amazon has dominated U.S. retail as more consumers shift away from brick-and-mortar stores toward online retailers. The company accounts for 49 cents of every e-commerce dollar spent in the U.S., contributing to its $178 billion in annual revenue, and it employs more than 550,000 workers, according to The New York Times.

Amazon has expanded into web hosting services, advertising, consumer technology, entertainment and e-books since launching as an online bookstore in July 1995.

But its also been under Trump's fire for a host of reasons.

Read more here.

 

FACEBOOK WILL PRESS ON WITH BIAS REVIEW: Facebook will continue with its internal audit of alleged anti-conservative bias even though Jon Kyl, the GOP lobbyist leading the effort, has been tapped to replace the late Sen. John McCain (R-Ariz.), a company source confirmed with The Hill on Tuesday.

Facebook had tapped Kyl, a former Senate minority whip, back in May to investigate concerns of left-leaning bias on the platform.

It's unclear who will head up the effort now that Arizona Gov. Doug Ducey (R) has appointed him to return to the Senate. Axios reported the news earlier on Tuesday.

Kyl left the Senate in 2013 and has since been working as a lobbyist with the law firm Covington & Burling.

Read more here.

 

TWITTER SAYS TRUMP ISN'T SAFE FROM ENFORCEMENT ACTIONS: A Twitter official said Tuesday that President Trump does not have a "blanket exception" from a possible ban by the social media platform.

The company's legal and policy chief, Vijaya Gadde, told Politico that while the company has often given Trump an exception for possible policy violations because of the newsworthiness of his tweets, there is "not a blanket exception for the president or anyone else."

The company has come under fire from Trump critics for not punishing the president for specific use of the platform. Trump often uses his account to launch personal attacks on political opponents, criticize the media and, on occasion, announce major policy or personnel decisions.

Read more here.

 

ICYMI: State Department unit created to fight foreign election interference still waiting on funding: report

California lawmakers pass strictest net neutrality law in US

 

A LIGHTER TWITTER CLICK: A powerful protest.

 

AN OP-ED TO CHEW ON: TV owners need new rules to keep pace

 

NOTABLE LINKS FROM AROUND THE WEB:

Millions could lose cheap phone service under FCC's overhaul of Lifeline. (Ars Technica)

Trump to name climate change skeptic as adviser on emerging technologies. (CNN)

Private sector isn't sharing data with DHS's threat portal. (CyberScoop)

Can you spot the deceptive Facebook post? (The New York Times)

Samsung plans to show off phone with foldable screen this year. (The Washington Post)

 
 
 
 
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Overnight Energy: Watchdog faults EPA over Pruitt security costs | Court walks back order on enforcing chemical plant rule | IG office to probe truck pollution study

 
 
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WATCHDOG FAULTS EPA OVER PRUITT SECURITY: The Environmental Protection Agency's (EPA) internal watchdog says the agency didn't have proper justification for former Administrator Scott Pruitt's security costs, which were double his predecessor's.

In a stinging report issued Tuesday morning, the EPA's Office of Inspector General (OIG) said the agency didn't even have a legal justification to provide a security force for Pruitt until auditors prodded agency attorneys for more than a year.

Auditors said Pruitt's security costs were $3.5 million in his first 11 months, more than double that of Gina McCarthy, the last EPA chief under former President Barack Obama.

The report provided some fodder for the Trump administration's critics, who are now pointing to it to prove that Pruitt was reckless with taxpayer's money.

"Failure to properly justify the level of protective services provided to the Administrator has allowed costs to increase from $1.6 million to $3.5 million in just 11 months," the OIG, led by Inspector General Arthur Elkins, wrote in the report.

The report concluded it was an "undocumented decision" and "an inefficient use of agency resources."

While the EPA routinely asserted throughout Pruitt's tenure that the security detail was justified due to a number of threats made against the administrator, the OIG found that the EPA never conducted a true threat analysis to determine the need for increased security.

Back story (How could we forget?): Pruitt resigned from the EPA in July, after a rocky 16-month tenure laced with five months of controversy over his compliance with ethics rules and over spending of taxpayer money. His ballooning security costs, including his decision to have unprecedented 24/7 security protection, were central to the scandals.

EPA's defense: In its own statement, the EPA defended its decisions regarding Pruitt's security.

"Because persons intending harm often do not make threats, EPA believes -- based on DOJ's report, 'Protective Intelligence & Threat Assessment Investigations,' Secret Service practices and real-life scenarios such as the recent attack on the Republican Congressional baseball team and the shooting of Representative [Gabrielle] Giffords [D-Ariz.] -- that a threat analysis cannot be the sole source of information used to determine if protective services are provided or the level of protection," EPA spokesman Michael Abboud said in a statement.

"Accordingly, there is no support for the OIG's insinuation that expenditures for protective services carried out before a threat analysis was conducted were not justified."

Read more.

To read the actual OIG report, click here.

 

Why it matters: Obviously, with Pruitt gone, the impact of Tuesday's report is much less than what it would have been had he still be at the EPA's helm.

Nonetheless, Democrats and other opponents of Trump are framing it as a condemnation not just of Pruitt, but the administration. They're going to want proof that these missteps are in the past.

What's next: As the report noted, Acting Administrator Andrew Wheeler chose early on in his tenure to abandon the 24-7 security, instead just having a door-to-door detail.

But while the security issue has been put to rest, the OIG has a handful of other Pruitt probes ongoing that could shed more light into his tumultuous tenure.

 

Happy Tuesday! And welcome back from the three-day weekend. Welcome to Overnight Energy, The Hill's roundup of the latest energy and environment news.

Please send tips and comments to Timothy Cama, tcama@thehill.com, and Miranda Green, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama, @mirandacgreen, @thehill. CLICK HERE to subscribe to our newsletter.

 

COURT WON'T FORCE EPA TO IMMEDIATELY IMPLEMENT CHEMICAL RULE: A federal court on Tuesday walked back its previous order that sought to force the Environmental Protection Agency (EPA) to immediately start enforcing a major Obama administration regulation on the safety of chemical plants and similar facilities.

The Court of Appeals for the District of Columbia Circuit issued its original order on Friday, after environmental groups and Democratic state attorneys general asked the judges to skip the traditional 52-day waiting period to enforce their Aug. 17 ruling. The ruling found that the Trump administration improperly delayed the Obama-era regulation.

But Tuesday afternoon the judges reversed that order, saying it had been made "inadvertently." The Aug. 17 decision is still in place, but it will not take effect until Oct. 8.

Judges Judith Rogers and Robert Wilkins did not explain their brief order Friday accepting the litigants' arguments. In the Tuesday notice rescinding Friday's order, the judges asked the various parties in the litigation to submit briefs on whether or not to immediately enforce the decision.

Read more.

 

WATCHDOG TO PROBE EPA TRUCK POLLUTION STUDY: The EPA's OIG said it's launched a probe into a 2017 EPA study of "glider" trucks, heavy-duty trucks that have new bodies and old engines that don't comply with current pollution standards.

The audit responds to requests from numerous House Republicans, including Science Committee Chairman Lamar Smith (R-Texas), who questioned whether the study complied with scientific standards.

"As part of this audit, the OIG will examine the selection, acquisition and testing of glider vehicles at the EPA's National Vehicle and Fuel Emissions Laboratory, as well as the EPA's planning for this testing."

The research found that glider trucks emit as much as 40 times more key pollutants than new vehicles.

It came as the Trump administration sought to overturn an Obama administration regulation that would have limited glider manufacturers to selling 300 trucks per year, in an effort to crack down on a loophole they enjoy.

Emails obtained by Smith and others show that EPA employees worked with officials from Volvo Trucks to obtain the gliders for the study. Opponents of the study have accused the EPA employees of trying to sabotage the deregulation and colluding with Volvo -- which wants to limit glider sales -- to do so.

Read the OIG notice here.

 

ON TAP WEDNESDAY:

The Senate Commerce, Science and Transportation Committee will meet to vote on a number of bills and nominees, including some fisheries legislation and Kelvin Droegemeier, Trump's nominee to lead the White House Office of Science and Technology Policy.

Rep. Lamar Smith (R-Texas), the retiring chairman of the House Science Committee, will sit down for a conversation at the National Press Club.

 

THE HILL EVENT:

Join us Thursday, Sept. 6, for "Partnerships & Progress: Driving Climate Solutions," featuring Rep. Brian Fitzpatrick (R-Pa.) and Sen. Sheldon Whitehouse (D-R.I.). Editor in Chief Bob Cusack will sit down with the headliners to discuss how the public and private sectors can balance environmental progress with healthy economic growth. RSVP Here.

 

OUTSIDE THE BELTWAY:

Jeffrey Skilling, the convicted former CEO of Enron, has been freed from prison and moved to a halfway house, Reuters reports.

Michael Gove, the United Kingdom's secretary of state for environment, acted Tuesday to block oil drilling at a spot in the Surrey Hills in southeast England, The Guardian reports.

Tropical Storm Gordon forced evacuations of 54 oil and gas platforms in the Gulf of Mexico, shutting in more than 9 percent of the Gulf's production, Nola.com reports.

 

IN CASE YOU MISSED IT:

Check out Tuesday's stories ...

-Noted climate skeptic to advise Trump on emerging technologies

-Zinke's former energy counselor at Interior takes job with offshore oil company

-Court walks back order, won't immediately require EPA to enforce chemical plant safety rule

-EPA failed to properly justify Pruitt security costs, watchdog says

-Trump officials reject environmental concerns over Dakota Access pipeline

 
 
 
 
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Overnight Health Care: Kavanaugh hearing off to contentious start | Planned Parenthood targets Kavanaugh in new ads | Patient groups pan GOP bill on pre-existing conditions

 
 
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It's finally Kavanaugh Week!

Supreme Court nominee Brett Kavanaugh started a week of hearings in front of the Senate Judiciary Committee today, but frequent protests and Democratic motions meant he didn't give his opening statement until late in the afternoon.

The hearing will resume Wednesday morning, when, presumably, Democrats will try to get Kavanaugh to give his views on a range of health-care issues, from pre-existing conditions to abortion. While it's unlikely they will succeed, advocacy groups are raising the alarm over his nomination.

To recap the day, check out The Hill's live blog on today's, at times, wild hearing.

 

Planned Parenthood is out with new TV ads in D.C. and Alaska Tuesday just as Kavanaugh begins his Senate confirmation hearing.

The ads in D.C. will air through this week on MSNBC's "Morning Joe" and NBC's "Meet the Press" Sunday. Ads in Alaska will air on TV and radio.

The six-figure ad buy highlights the "risk" Kavanaugh's nomination poses to abortion access in the U.S. and urges senators to vote against his confirmation.

Read more here.

 

More on Kavanaugh:

Dems interrupt Kavanaugh hearing, asking that it be adjourned.

Protesters dress as "handmaids" for hearing.

Capitol Police arrest 70 during first day of hearings.

Trump slams Dems for "mean, angry and despicable" hearing.

Cornyn says Kavanaugh hearing dissolved into "mob rule."

Hatch snaps at protesters for "insolence."

And tune in to The Hill tomorrow for coverage of day two.

 

Patient groups say GOP bill on pre-existing conditions is insufficient

10 Republican senators last month introduced a bill trying to show that Republicans support maintaining protections for pre-existing conditions even if a GOP-backed lawsuit against ObamaCare succeeds.

But now more than 25 patient groups say the bill is insufficient.

The problem, according to the patient groups: The measure would enshrine into law the Affordable Care Act's protections against charging more money or denying coverage to people with pre-existing conditions.

However, the groups note that the measure does not include a ban on insurers simply excluding coverage of pre-existing conditions, meaning insurers could offer plans that do not cover the care that patients need most while still not denying coverage outright.

The legislation also would allow insurers to charge higher premiums based on factors like age, the groups note.

The groups issuing the statement include the American Heart Association, American Cancer Society Cancer Action Network and American Diabetes Association.

Read more here.

 

Speaking of the ObamaCare lawsuit, arguments are tomorrow

Oral arguments in the case will start on Wednesday at 10:30 a.m. EDT, 9:30 a.m. local time in Fort Worth, Texas, and are expected to last for a couple of hours.

Participants will be on the lookout for clues on how the judge is thinking.

Democrats will be stepping up their messaging around the case, which already has been a main theme of their midterm campaign message, arguing that Republicans are jeopardizing coverage for people with pre-existing conditions.

Check back at TheHill.com tonight for a curtain raiser on the arguments and the high stakes for both parties.

 

Health care attacks heat up in Nevada Senate race

Sen. Dean Heller (R-Nev.) has been getting hammered on health care by opponent Rep. Jacky Rosen (D-Nev.). Now he's hitting back.

Heller launched a new ad on Tuesday that seeks to counter an ad from Rosen last month that called him "Senator Spineless" and featured an inflatable figure waving in the wind.

Heller's ad features him standing in front of the same inflatable figure, where he states, "Jacky Rosen's idea of fixing health care? A campaign commercial. The truth is, in her two years in Congress, Jacky Rosen has done nothing to fix health care. Nothing. Zero."

What's he responding to? Rosen's ad last month hit Heller for initially opposing GOP ObamaCare repeal efforts last year at a high-profile press conference alongside the state's GOP governor, Brian Sandoval, before later sponsoring an ObamaCare repeal and replacement bill of his own, called Graham-Cassidy-Heller-Johnson.

How do Heller's claims stack up? Heller argues in his new ad that he is "fighting to protect pre-existing conditions."

He cites a bill he cosponsored last month with other GOP senators to enshrine into law ObamaCare protections against people with pre-existing conditions getting charged more or denied coverage in case the Republican lawsuit against ObamaCare succeeds.

However, Larry Levitt, a health policy expert at the Kaiser Family Foundation, said that the GOP bill would still allow insurers to exclude coverage of pre-existing conditions altogether, making the protections in the measure "something of a mirage."

In addition, the Graham-Cassidy-Heller-Johnson ObamaCare repeal and replacement bill that Heller backed also took fire last year for its provisions on pre-existing conditions. That measure would have allowed states to waive ObamaCare's protections against people with pre-existing conditions being charged higher premiums.

Read more here.

 

What we're reading

What's at stake in the latest Affordable Care Act court battle (NPR.com)

One of ObamaCare's big experiments to lower costs is working surprisingly well (Vox.com)

The high cost of hope: when the parallel interests of pharma and families collide (The Daily Beast)

Health insurance premiums on marketplaces are settling down (NPR)

 

State by state

California state lawmakers push to protect patients and counter Trump (California Health Line)

Maine Gov. LePage files Medicaid expansion plan but urges feds to reject it (pressherald.com)

 

The Hill event

Join us Wednesday, September 12 for "A Healthy Start: Infant and Early Childhood Nutrition," featuring Reps. Nanette Barragán (D-Calif.) and Bobby Scott (D-Va.), and Administrator of the Food and Nutrition Service Brandon Lipps. Editor in Chief Bob Cusack will sit down with the headliners to discuss maternal, infant, and early childhood nutrition, and what steps can be taken to establish healthier eating patterns across all communities. RSVP Here.

 
 
 
 
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