$5 Billion in Loans for Energy Efficiency Upgrades, $30 Billion for Small Business Lending & the Liability of Simply Being in Washington

This Week in the People's House
9/19/2010
By Bobby Frederick

The House arose from a 34-day slumber to pass a $5 billion measure aimed at encouraging energy efficiency upgrades in rural and urban communities. Meanwhile, the Senate amended a $30 billion proposal designed to get banks to loan to small businesses and sent it back for House consideration this week.

Convening on Tuesday, September 14th (first votes at 6:01 p.m.) and adjourning on Thursday, September 16th (last vote at 4:10 p.m.), the House took 13 votes for the week. The House eased back into session, working a total of 17 hours and 20 minutes.

Rank-and-file Democrats in the House have come to the realization that every minute spent in Washington hurts their chances at holding on to their majority. Speaker Pelosi listened to her members and cancelled votes for Tuesday (9/21). The smart money is that Democrats will adjourn until after the election on Friday, October 1st, leaving just seven voting days left on the calendar.

Balance of the House: 433 members: 255 Democrats, 178 Republicans and 2 vacancies (NY-29 & IN-3). Republicans need to pick up 39 seats to take control of the majority in the House.

Last Week's Action

Suspensions: (Usually reserved for non-controversial measures, suspensions need the votes of two-thirds of those present and voting to pass). The House passed nine suspension bills last week (Honoring the Oklahoma National Guard, Congratulating Miami Dade College on its 50th anniversary, applying “Buy America” provisions to the Legislative Branch, post office naming in Wisconsin, designating a national week for Hereditary Breast and Ovarian Cancer, reforming how overseas contracts are granted, commemorating the 9/11 terrorist attacks, naming a federal building in Mississippi, expressing condolences to Pakistan after July floods). Roll Call Votes 519-25, 528 & 531 click here.

YOUCUT: After reports recently surfaced that federal employees owed nearly $1 billion in back taxes, Republicans tried to force a vote on a proposal that would terminate federal employees who refuse to pay their taxes and prevent individuals from being hired if they owe back taxes. The majority of Democrats blocked this move by a vote of 226-186. (Voting Yes- 226 D's & 0 R's : Voting No- 15 D's & 171 R's). A “yes” vote was a vote to cut off debate and move on to the underlying bill. Had the “no’s” prevailed the Republicans would have been given an hour to debate their proposal and an up or down vote.

Rule Bill: (A bill that goes through the House Rules Committee, where amendments are allowed or disallowed and then packaged with instructions before it heads to the House floor. A simple majority vote usually passes the legislation.)

H.R. 4785, the Rural Energy Savings Program Act. Originally designed to authorize $993 million for a rural energy efficiency loan program this legislation ballooned into a $5 billion authorization measure, upon re-adding a “Home Star” energy program that the House had already voted to strip back in May.

$4.25 billion for interest-free loans from the government to states for energy efficient home improvements. $725 million for the Agriculture Department to make interest-free loans to rural electric cooperatives who could re-loan these funds at 3% interest to their members who wish to install energy efficiency or farm efficiency measures.

During debate, Democrats touted this bill as an energy efficient job creator, while Republicans argued that these programs are duplicative to ones created in the failed stimulus and that now is not the time to spend $5 billion more.

H.R. 4785 passed by a vote of 240-172 (Voting Yes- 234 D’s & 6 R’s : Voting No: 5 D’s & 167 R’s), but the Senate is unlikely to act on this before the election.

Other Big News

Ethics Woes: Upon taking power in 2006, Nancy Pelosi promised the, “most honest, most open and most ethical Congress in history.” However, it appears that the ethics trials of Congressman Charles Rangel and Congresswoman Maxine Waters will have to wait until AFTER the election.

1994 all over again: A republican takeover in Congress could lead to gridlock. The man who would be Speaker, John Boehner, said that is our (Republicans) goal "to not shut down the government."

Late Breaking Today: After five months, the BP oil leak has finally been sealed.

The People's House Politics Extra! (43 days until the 2010 Midterm Election)

There are some surprises in Stuart Rotherberg's latest House Race Ratings.

The Money Race: Republican 527's have almost pulled even with Democrat 527's.

The Republican establishment in Delaware are about as excited that Christine O'Donnell won their party's nod for Senate as Wayne and Garth were when they visited "The Diamond State" back in 1992.

The Week Ahead

Votes: First votes will occur at 6 p.m. on Wednesday, September 22nd and last votes will be taken during the afternoon of Friday, September 24th.

Suspensions: On tap are 39 suspensions (legislation that requires 2/3’s voting majority to pass – usually reserved for non-controversial measures). The vast majorities will pass via voice vote. See complete list here.

Rule Bills: H.R. 5297- the Small Business Jobs and Credit Act of 2010 introduced by Rep. Barney Frank (D-MA). This will be an up or down vote (no amendments allowed) on an amended version of H.R. 5297 that the Senate passed last week.

Quick Summary: Establishes a $30 billion fund aimed at assisting community banks to loan to small businesses. The Senate attached an additional $12 billion in tax cuts, including the depreciation bonus from the 2009 stimulus law that permits businesses to write off half of their new equipment purchases. The bill is offset, primarily by allowing government retirement accounts to be converted into Roth accounts (taxed at front end).

Prediction: Republicans will paint this as another TARP bailout and Democrats will tout it as a jobs growing economy booster. It will pass the House and be signed into law by the president.

Before Leaving for the Campaign Trail: The last must-pass item before the election is a continuing resolution to fund the government after the fiscal year ends (likely until some point in November). The House could take a crack at the expiring tax cuts, but 38 House Democrats have rebuffed Pelosi’s position by supporting a short-term extension of ALL of the Bush tax cuts.

Eye on the Senate: This week, the Senate will begin to take up their version of the FY 2011 Defense Authorization bill. As part of this debate, there could be votes on repealing Don’t Ask, Don’t Tell, as well as the DREAM Act which would provide a pathway to citizenship for younger illegal immigrants if they attend college or serve in the military for two years.

Quote of the Week

“I am writing to request that you not seek the Speaker’s position during your next term and make your intention not to seek this leadership position public.” Democrat candidate Brett Carter of Tennessee’s 6th Congressional District asking Nancy Pelosi to step down as Speaker next term.

Whether or not the Democrats hold on to the House or not, Pelosi would be a meaker Speaker in the 112th Congress.