Congress Passes Strategic Petroleum Reserve Suspension
Intending to help alleviate pressure on the high cost of gasoline, the House voted 385-25 on May 13, 2008 to pass legislation (H.R. 6022) to temporarily suspend acquisitions of oil by the national Strategic Petroleum Reserve (SPR). The Senate subsequently passed H.R. 6022 by unanimous consent.
Every day, 70,000 barrels of oil are being shipped to the SPR. Proponents of H.R. 6022 argued that a temporary suspension is justified, as there are already over 700 million barrels in the Reserve in the event of an emergency. With the price of oil at over $120 per barrel, suspending acquisitions for the remainder of 2008 would both save taxpayers money and boost the supply of oil available for commercial purposes.
Congressman Todd Platts is a cosponsor of H.R. 6022. He voted for its passage while continuing his calls for greater long-term action to boost energy supplies, reduce America’s dependence on foreign oil, and lower prices at the pump.
House Considers Mortgage Legislation
On May 7, 2008, the House voted on three major proposals meant to address the home mortgage issue. Congressman Platts supported some of the proposals but opposed others. In explaining his votes, he emphasized the need to help stabilize the housing market balanced with fiscal responsibility.
The first proposal is a bill (H.R. 5818) which would provide $7.5 billion in zero-interest loans and another $7.5 billion in grants to state and local governments to buy foreclosed properties. Congressman Platts supported an attempt on the House floor to amend the bill so as to strike the grants from it and simply provide $15 billion in loans. Because this amendment was defeated by a vote of 219-190, Congressman Platts voted against the underlying bill.
The second proposal—an amendment to a different bill (H.R. 3221)—would reform Fannie Mae and Freddie Mac, government-sponsored enterprises involved in the housing market, as well as the Federal Housing Administration (FHA). Congressman Platts supported the reforms of Fannie Mae, Freddie Mac, and FHA, having cosponsored similar legislation.
The aforementioned amendment, however, would also provide up to $300 billion in federal guarantees for home mortgages. Congressman Platts voted against these guarantees, which would go only to lenders that agreed to write-off 15% of the home mortgage of borrowers in foreclosure. Critics of this provision denounced it as unfair to home owners who struggle to make their mortgage payments on time, yet could not qualify for a write-off. Concerns were also raised about the uncertainty of the eventual cost to taxpayers of such guarantees.
The final proposal—a second amendment to H.R. 3221—would provide a refundable tax credit of $7,500 for first-time homebuyers. Taxpayers would then have to repay the tax credit over 15 years, effectively making it a zero-interest loan. Congressman Platts voted in favor of this proposal. Supporters of the amendment argued that it would provide a necessary boost to the housing market.
H.R. 5818 passed by a vote of 239-188. The first amendment to H.R. 3221 passed by a vote of 266-154, and the second amendment by a vote of 322-94. The Senate has passed its own version of mortgage legislation. The House and Senate must now resolve the differences between their various proposals.
Web Page Highlights (www.house.gov/platts)
Traumatic Brain Injury Act Signed Into Law
U.S. Reps. Bill Pascrell, Jr. (NJ-08) and Todd Platts (PA-19), the Co-Chairmen of the Congressional Brain Injury Task Force, today lauded President George W. Bush’s signing of the Traumatic Brain Injury Act into law.
(http://www.house.gov/apps/list/press/pa19_platts/tbiact.shtml)
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