Natalie Gonnella
On Friday, House Republicans passed H.R. 836, the Emergency Homeowner Relief Program Termination Act, which (if successfully signed into law) would save taxpayers nearly $1 billion.
With the legislation facing a difficult path in the Senate, as well as veto threats from President Obama, House Republicans have stepped up their calls to end the Administration's expensive housing relief strategy.
In contrast to the programs costly and burdensome provisions, GOP Congress members continue to push for greater action on job creation and spending cuts, which they see as the best means to assist struggling homeowners. Here's a look at what a number of Republicans have had to say in response to Friday's vote and the uncertain future of their bill:
The federal government cannot continue to spend money we do not have especially on programs that are duplicative or simply do not work. This program either increases the debt of borrowers who are already struggling with their mortgages or leaves taxpayers holding the bag if the homeowner defaults. The Administration itself estimates that this program will lose 98 cents for every dollar spent. The most important thing we can do for Nevadans is to create an environment for job growth, and that starts with reigning in government spending and putting an end to costly ineffective programs.
The so-called ‘emergency mortgage relief program’ established a $1 billion fund to provide loans or credit advances to unemployed homeowners who cannot pay their mortgages. While this program may sound like a good idea to some, instead of giving people a life raft, it gives them an anchor. It increases the debt of borrowers who are already struggling with their current obligations, thus leaving them worse off. Besides being bad for distressed homeowners, this program is also bad for taxpayers; for every dollar spent, merely two cents is paid back—meaning the taxpayers lose 98 percent of their money. At a time when the government is already spending money it doesn’t have, this rate of inefficiency is unconscionable and needs to stop. The best way to help homeowners avoid default and prevent foreclosures is with a job. Continued government intervention and questionable use of taxpayer money only prolongs our current economic crisis and ensures that the housing market will continue to struggle. Instead of trying to borrow and spend our way to prosperity, I am working hard in Congress to pass pro-growth policies that will create jobs and get this economy moving again.
Instead of having the government spend money it doesn’t have on programs that don’t work, Congress should focus on supporting policies that help create jobs for 5th District Virginians. This government program fails to adequately help struggling homeowners while leaving taxpayers in Central and Southside Virginia to foot the bill. With our skyrocketing debt and deficits, the last thing we need is more wasteful spending, questionable use of taxpayer dollars, and a continued intervention of the federal government. If we are serious about moving our economy forward, we need to continue to support pro-growth policies that empower our job creators to innovate, hire, and expand.
By the Obama administration’s own estimate, 98 cents of every dollar allocated for this program would be wasted,” stated Westmoreland. Our country currently has an almost 9% unemployment rate and more than $14 trillion in debt. Rather than spending $1 billion in taxpayer money on a program that is clearly wasteful and only increases our national debt, we should be focused on job creation and reigning in federal spending. That’s what the American people want. Whenever you have a federally funded government program that’s been in effect for almost eight months without a single dime being spent, you know you have an ineffective program. This program was just a continuation of President Obama’s failed housing programs; and on a broader scale, a continuation of their overall failed bailout policy. It needed to be terminated and the funds returned to pay down the national debt. I hope the Senate follows our lead and passes this legislation as well.
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