Madam Speaker, I rise today to voice my strong support for the Recovery Rebates and Economic Stimulus for the American People Act (H.R. 5140).  This important measure represents a bipartisan commitment to help hardworking Americans weather these turbulent economic times.
 
Millions of Americans have been faced with the rising costs of energy, housing and healthcare, which have taken a toll on the state of our economy.  In my home state of Rhode Island, the typical monthly housing payment is over $2,200, making homeownership a dream out of reach for too many.  The situation for renters is not much better, as the average two-bedroom apartment in Rhode Island rents for nearly $1200 a month.  Compounding the cost of housing are the skyrocketing costs of energy, which rose 18.4% in 2007.   Our employment outlook is also discouraging.  Earlier this month, the Bureau of Labor Statistics announced that the national unemployment rate has risen to a two-year high of 5%. 

These harsh realities, combined with the snowballing effects of the recent subprime lending crisis, have made it increasingly clear that our economy will face an even sharper downturn if we do not act soon.  With that in mind, today we are taking swift and bipartisan action to jump-start our nation’s economy with a measure that is timely, targeted and temporary. 

This measure will quickly inject $150 billion into our economy to revitalize our markets, increase consumer confidence, and protect against recession.  Our package is targeted at low-income and middle-class Americans who need assistance the most, providing rebates that will put money directly into their pockets, which will, in turn, stimulate our economy.  I am particularly pleased that this package will provide relief to 35 million Americans who work and contribute to payroll taxes, but make too little to pay income tax.

Our measure will also temporarily increase the size of individual mortgages that Fannie Mae and Freddie Mac can purchase, offering help to those in need of affordable housing, particularly in high-cost areas like Rhode Island.  Also included is a provision to allow the Federal Housing Administration to insure a greater number of subprime loans so thousands of Americans facing foreclosure may refinance their mortgages with fairer terms. 

Finally, I am pleased this package will help to stimulate our nation’s small businesses by allowing them to write off 50% of the cost of equipment the year it is purchased.  This important incentive – which expires at the end of the year – will encourage growth and help keep our small businesses strong.

This measure solidifies our commitment to revitalize our economy in a way that is timely, targeted, and temporary.  I commend Speaker Pelosi for her leadership in negotiating this significant bipartisan agreement, and I urge my colleagues to support this measure.