HOUSING BILL A TOP PRIORITY IN CONGRESS
This week, Congress will continue to work to pass housing legislation (H.R. 3221) aimed to create a new regulator for Fannie Mae and Freddie Mac, help sub prime borrowers stay in their homes, create an affordable housing trust fund and provide tax breaks for those buying homes.
Congress has been working on the housing legislation for some time. However, the bill was put on the fast-track when shares of Fannie and Freddie plummeted over fears that the mortgage giants lacked liquidity. Treasury Secretary Henry Paulson met with lawmakers last week to ask them to include steps to help Fannie and Freddie in the legislation.
Paulson's plan would temporarily increase the line of credit Fannie and Freddie have with the Treasury and would also permit the federal government to buy stock in the two companies. House Democrats also want to attach $4 billion for Community Development Block Grants for the rehabilitation of foreclosed properties. The White House has threatened to veto the bill if the Block Grants are included.
Both the House and the Senate are expected to take up the bill sometime later this week.
DEBATE CONTINUES ON A VARIETY OF GAS PRICE PROPOSALS
Both Democrats and Republicans are looking to bring legislation to the floor this week to address the rising price of gas and establish their respective party as the leader on the issue.
Senate Majority Leader Harry Reid (D-NV) filed cloture on a bill to curb speculation in oil futures markets. Senate Democrats are also considering voting on "use-it-or-lose-it" legislation that would force oil companies to explore and drill on existing leases before any additional leases would be granted. Similar legislation failed in the House for the second time last week under suspension of the rules. House Democrats are also seeking to bring legislation to a vote that would release oil from the Strategic Petroleum Reserve in order to increase supply and reduce prices.
Republicans continue to promote legislation that would allow for offshore exploration and drilling for oil and gas.
HOUSE TO CONSIDER BRIDGE REPAIR BILL
Legislation introduced by Rep. James Oberstar (D-MN) to inspect and repair bridges will be debated by the House this week.
The bill calls for the establishment of a system to prioritize the repair and replacement of structurally deficient bridges. The risk-based priority system would be created by the Transportation secretary. The system would be uniform across all 50 states. States would be required to develop five-year plans to inspect, evaluate and repair deficient bridges. The bill authorizes $1 billion in FY09.
The origin of the bill lies in the collapse of the I-35W bridge that collapsed in Minneapolis, Minnesota last August. 13 people were killed. As a result, Minnesota Congressman Oberstar has been an outspoken advocate of preventing similar future bridge failures.
SENATE ALLOCATES FUNDING FOR MILITARY AND VETERANS AFFAIRS
The Senate Appropriations Committee last week approved the FY09 spending bill for Military Construction and Veterans Affairs. The bill provides $48 billion in discretionary spending for Veterans Affairs (VA). Additionally, $41 billion would go to fund veterans health care services. The bill includes $250 million to initiate a new health outreach program for veterans in rural areas and also provides $5 million for outreach and transitional assistance to women veterans.
$24.7 billion is also included in the bill for military construction, family housing and BRAC. In addition, the bill includes $1.3 billion for Guard and Reserve facilities.
HOUSE TO TAKE UP HIV/AIDS BILL
The House is expected to take up the HIV/AIDS bill passed by the Senate last week. The Senate passed the legislation 80-16. The bill (H.R. 5501) would allocate $50 billion to fight HIV/AIDS, malaria and other diseases throughout the developing world. The bill is significantly larger than the $30 billion that President Bush requested in his budget.
