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Rep. McDermott Introduces Gas Stamps Legislation to Assist Vulnerable Americans
Rep. Jim McDermott (D-WA)
July 22, 2008

Rep. Jim McDermott (D-WA), chairman of the Ways and Means Subcommittee on Income Security and Family Support, introduced legislation today to provide financial assistance to vulnerable Americans struggling to survive under crushing gasoline prices.

The Emergency Gasoline Assistance Act (H.R. 6561) would create a program to provide $5 billion to states as a one-time grant with the money designated to provide assistance to families of modest means to purchase gasoline.  This program could provide every family that is currently living below the federal poverty threshold with $500 in assistance.  State governors would have the flexibility to use the money to create programs that target the specific needs of their communities. 

“Today’s punishing gasoline prices are hard enough on American families with above average income, but the prices are devastating on Americans who are living at or near poverty,” Rep. McDermott said, “and I don’t intend to stand idly by and do nothing.” 

If gas prices remain unchanged, the average family will spend about $1,000 more in gasoline expenses this year, compared to 2007, and this burden is disproportionately felt by low income families, which are struggling to purchase gasoline to simply travel to work.  Families in rural areas face additional challenges.  The Emergency Gasoline Assistance Act would provide these families vital assistance in coping with the sudden shock of spiking gasoline prices. There are currently 7.7 million American families that are living in poverty.

“The Labor Department reported last week that inflation had its biggest increase last month in 17 years and I think we have an obligation to our most vulnerable citizens to act to help them.  The bad economic news says to me that Americans have to choose between food and fuel and that is not acceptable in the richest nation on earth.”

Under McDermott’s bill, the Social Services Block Grant (SSBG), which is an annual grant made to states to finance social programs aimed to assist vulnerable populations, like the aged, the disabled, and the impoverished, would receive a $5 billion infusion to finance the Gas Stamps program.  By utilizing the SSBG, states would be able to tap into a funding stream with which they are familiar to immediate assist people with the high price of gasoline.

“I hope Congress will act quickly on this legislation.  I proposed it in the spirit of something President John F. Kennedy once said: ‘If a free society cannot help the many who are poor, it cannot save the few who are rich.’”

Click here to read a copy of the proposed legislation