Alternative Minimum Tax Relief
On September 24, 2008,the House passed H.R. 7005 to provide critical tax relief to 25 million middle-class families by protecting them from the Alternative Minimum Tax. The bill will provide $62 billion in Alternative Minimum Tax (AMT) relief to ease the strain of rising gas and food prices, and is a critical part of our plan to strengthen the American economy. The AMT was put into place to ensure that the wealthiest families did not escape paying taxes altogether. It has grown to be such a problem that it now threatens teachers and firefighters – a far cry from its original intent.Since taking control of Congress, Democrats have fought for fiscal responsibility and this summer the House passed legislation to provide millions of middle-class families with tax cuts without increasing the national debt. That middle-class tax relief was fully paid for -- adhering to strict pay-as-you-go budget discipline to ensure long-term American economic growth.But the stubborn fiscal irresponsibility of Senate Republicans and President Bush has been a huge roadblock to a new direction of fiscal responsibility. On June 24, President Bush threatened to veto AMT relief that was paid for, and on Tuesday Senate Republicans rubberstamped that position voting against paying for an AMT bill, objecting to making oil companies pay their fair share for oil in the Gulf of Mexico and closing a tax loophole regarding CEO-deferred compensation paid by offshore companies.So to protect middle-income families from this tax increase, we have been forced to drop offsets closing some tax loopholes; we simply cannot hold millions of middle-class families hostage due to misplaced Republican priorities.Seven years of Republican policies have resulted in nearly $10 trillion of national debt. They have passed debt instead of prosperity onto our children and grandchildren. This has been bad for the economy: weakening the value of the dollar, raising the cost of oil and food for American families and businesses, and limiting our ability to meet the huge economic challenges we are facing today. Cut Taxes for Millions of FamiliesProtects more than 25 million middle-class families from being hit by the AMT. The bill would extend for one year AMT relief for nonrefundable personal credits and increases the AMT exemption amount to $69,950 for joint filers and $46,200 for individuals. Includes relief for AMT taxpayers who have exercised incentive stock options. In the past, taxpayers that exercised incentive stock options were unintentionally required by the AMT to pay tax on gains that never materialized. This provision will protect these taxpayers from this unintended tax.
Thursday, December 4, 2008
Americans With Disabilities Act Of 08
Americans With Disabilities Act Amendments Act
On September 17, 2008, the House passed the final version of the Americans with Disabilities Act Amendments Act, S. 3406. This legislation overturns four erroneous Supreme Court decisions that have eroded the protections of people with disabilities under the ADA, restoring original Congressional intent. This legislation was signed into law on September 25, 2008.This legislation:
Overturns the erroneous Supreme Court decisions that have eroded the protections for people with disabilities under the ADA, restoring original Congressional intent.
Rejects strict interpretation of the definition of disability, and makes it absolutely clear that the ADA is intended to provide broad coverage to protect anyone who faces discrimination on the basis of disability.
Strikes a balance between employer and employee interests.
Prohibits the consideration of mitigating measures such as medication, prosthetics, and assistive technology, in determining whether an individual has a disability.
Covers people who experience discrimination based on a perception of impairment regardless of whether the individual experiences disability.
Provides that reasonable accommodations are only required for individuals who can demonstrate they have an impairment that substantially limits a major life activity, or a record of such impairment. Accommodations need not be provided to an individual who is only “regarded as” having an impairment.
Is supported by a broad coalition of civil rights groups, disability advocates, and employer trade organizations. Background:The Americans with Disabilities Act of 1990 was intended to “provide a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities.” Just as other civil rights laws prohibit entities from basing decisions on characteristics like race or sex, Congress wanted the ADA to stop employers from making decisions based on disability.Unfortunately, four U.S. Supreme Court decisions have narrowed the definition of disability so much that people with serious conditions such as epilepsy, muscular dystrophy, cancer, diabetes, and cerebral palsy have been determined to not meet the definition of disability under the ADA.The result: In 2004, plaintiffs lost 97% of ADA employment discrimination claims that went to trial, often due to the interpretation of definition of disability. People who are not hired or are fired because an employer mistakenly believes they cannot perform the job – or because the employer does not want “people like that” in the workplace – have been denied protection from employment discrimination due to these court decisions. This was not the intent of the ADA.
On September 17, 2008, the House passed the final version of the Americans with Disabilities Act Amendments Act, S. 3406. This legislation overturns four erroneous Supreme Court decisions that have eroded the protections of people with disabilities under the ADA, restoring original Congressional intent. This legislation was signed into law on September 25, 2008.This legislation:
Overturns the erroneous Supreme Court decisions that have eroded the protections for people with disabilities under the ADA, restoring original Congressional intent.
Rejects strict interpretation of the definition of disability, and makes it absolutely clear that the ADA is intended to provide broad coverage to protect anyone who faces discrimination on the basis of disability.
Strikes a balance between employer and employee interests.
Prohibits the consideration of mitigating measures such as medication, prosthetics, and assistive technology, in determining whether an individual has a disability.
Covers people who experience discrimination based on a perception of impairment regardless of whether the individual experiences disability.
Provides that reasonable accommodations are only required for individuals who can demonstrate they have an impairment that substantially limits a major life activity, or a record of such impairment. Accommodations need not be provided to an individual who is only “regarded as” having an impairment.
Is supported by a broad coalition of civil rights groups, disability advocates, and employer trade organizations. Background:The Americans with Disabilities Act of 1990 was intended to “provide a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities.” Just as other civil rights laws prohibit entities from basing decisions on characteristics like race or sex, Congress wanted the ADA to stop employers from making decisions based on disability.Unfortunately, four U.S. Supreme Court decisions have narrowed the definition of disability so much that people with serious conditions such as epilepsy, muscular dystrophy, cancer, diabetes, and cerebral palsy have been determined to not meet the definition of disability under the ADA.The result: In 2004, plaintiffs lost 97% of ADA employment discrimination claims that went to trial, often due to the interpretation of definition of disability. People who are not hired or are fired because an employer mistakenly believes they cannot perform the job – or because the employer does not want “people like that” in the workplace – have been denied protection from employment discrimination due to these court decisions. This was not the intent of the ADA.
Emergency Supplemental Funding
Emergency Supplemental Funding for Iraq, Afghanistan, Veterans, Workers, and Midwest Disasters
On June 19, 2008, the House passed the fiscal year 2008 supplemental, providing funding for Iraq, Afghanistan, veterans, workers, and Midwest disasters. The bill was signed into law on June 30, 2008. Speaker Pelosi voted against Amendment #1 and in favor of Amendment #2>>
Details of the LegislationThe proposal will be taken up as two amendments. These amendments include provisions to meet the needs of our troops, fully restore GI Bill education benefits for Iraq and Afghanistan veterans, provide emergency assistance to Americans struggling in an economy on the brink of recession, provide urgently-needed disaster relief in the response to the floods and tornadoes in the Midwest, and block damaging Medicaid regulations. There will be two separate votes on: 1) an amendment that provides funding for the wars in Iraq and Afghanistan; and 2) an amendment funding certain key priorities. There will be no vote on final passage.Amendment #1 provides $165.4 billion, as passed by the Senate in May, for DOD funding in FY 2008 and FY 2009 for the wars in Iraq and Afghanistan. (However, Amendment #2 reduces this funding to $161.8 billion.) Amendment #2 includes key domestic and humanitarian priorities, such as the new GI bill, extended unemployment benefits, domestic disaster relief, and international food assistance.For appropriated items, this bill is at the President’s request -- except for new disaster funding. Under consideration is $183.9 billion in outstanding appropriations requests from the President. This bill’s appropriations total is $186.5 billion – which stays within the requested level of appropriated dollars with the exception of $2.65 billion added for disaster relief in the aftermath of the devastating tornadoes and floods that have hit the Midwest. Other than the extra $2.65 billion for disaster relief, increases in the bill for such items as an addition of $500 million for international food aid are offset with reductions in other requested funding. Following are highlights of the provisions of these two amendments.Amendment #1: Funding for Wars in Iraq and AfghanistanAmendment #1 provides $165.4 billion for DOD funding of the wars in Iraq and Afghanistan, as passed by the Senate on May 22, 2008. This covers the costs of the wars through the summer of 2009. The total includes $99.5 billion for FY 2008 and $65.9 billion for FY 2009. However, Amendment #2 (see below) would reduce the funding by $3.6 billion for a new total of $161.8 billion for DOD funding of the wars in Iraq and Afghanistan. Amendment #2: Domestic and Humanitarian Priorities AmendmentProvides for the new GI Bill, which fully restores GI education benefits for Iraq and Afghanistan veterans to the level available after World War II.
The new GI bill restores full, four-year college scholarships to veterans of the Iraq and Afghanistan wars to help make them part of an economic recovery like the veterans of World War II.
It will give our returning troops the tools to succeed after military service and make military service more attractive as we work to rebuild our military, and strengthen our sagging economy.
Under the new GI bill, servicemembers returning from Iraq or Afghanistan, who have served 3 years on active duty, would receive benefits to cover the costs of a four-year education up to the level of the most expensive in-state public school.
Education benefits would be available to troops who have served at least 3 months of active duty since September 11, 2001, including members of the National Guard and Reserve.
The bill also allows service members with six years of service, coupled with an additional service agreement of four years, to transfer their educational benefits to their spouses and dependents.
The new GI bill is broadly supported by all major veterans’ organizations, including the American Legion, the Veterans of Foreign Wars, and Iraq and Afghanistan Veterans of America.Provides for extended unemployment benefits for those who have exhausted the 26 weeks of regular benefits.
The amendment would provide up to 13 weeks of extended unemployment benefits in every state to workers exhausting the 26 weeks of regular unemployment benefits.
For five consecutive months, the U.S. economy has lost jobs. In total, 324,000 jobs have disappeared.
1.6 million workers are long-term unemployed (jobless for more than 26 weeks), representing nearly one out of every five jobless workers.
The number of long-term unemployed Americans is higher now than when Congress last extended unemployment benefits in 2002.
Extending unemployment benefits will also help stimulate an economic recovery. CBO states that extending unemployment benefits is one of the most cost-effective and fastest-acting forms of economic stimulus because the money is spent quickly. Provides $2.65 billion for urgent disaster relief in response to Midwestern floods and tornadoes.
Over the last several weeks, disastrous floods and tornadoes have struck many states throughout the Midwest.
The amendment includes $2.65 billion in urgently-needed disaster relief in the aftermath of these floods and tornadoes, including additional funding for FEMA Disaster Relief accounts, SBA disaster loans, agriculture assistance, the Community Development Block Grant, the Economic Development Administration, and the Army Corps of Engineers.Places a moratorium until April 1, 2009 on six Administration-imposed Medicaid regulations, which would slash federal funding for vital programs and services.
If implemented, these regulations would reverse longstanding Medicaid policies and eliminate federal payments for a variety of critical Medicaid functions.
As a result, they would put in jeopardy needed services and protections for millions of vulnerable beneficiaries, as well as support for critical safety net institutions in states that are financially strapped.
These regulations would slash federal Medicaid funding to states for vital programs and services by billions of dollars over the next five years.
These regulations would particularly harm children and their access to health care – with 30 million children currently dependent on the Medicaid program. Provides a total of $10.1 billion for the State Department, USAID, and international food assistance, $670 million above the President’s request.
The amendment includes $1.9 billion, $745 million above the President’s request, for international food and disaster assistance. This includes $500 million above the President’s request for international food aid and $245 million above the President’s request for development assistance and disaster assistance programs meant to alleviate hunger.
The amendment includes $696 million, $475 million above the President’s request, for refugee assistance, to address the refugee crisis in Iraq and elsewhere.
The amendment provides $465 million, $85 million below the President’s request, for the Merida initiative to provide counter-narcotics and law enforcement assistance in Mexico ($400 million) and Central America ($65 million). Provides $2.2 billion over the President’s request to fully fund military quality of life initiatives – including funding for military child care centers, military hospitals and VA hospitals.
The amendment provides an additional $863 million over the President’s request to meet Base Realignment and Adjustment Commission (BRAC) requirements – funding improvements at military bases, benefiting our military families, as certain bases are realigned and closed.
It provides an additional $863 million over the President’s request for military hospitals, in order to prevent the types of problems that faced Walter Reed.
It provides an additional $396 million over the President’s request for VA hospitals and VA polytrauma centers.
In addition, it provides an additional $210 million for military child care centers. In his State of the Union, President Bush called for additional funding for military child care centers, but then neglected to include this funding in his budget. Requires that U.S. reconstruction aid for Iraq provided by the State Department and USAID be matched dollar-for-dollar by the Iraqi Government.
Over the last 5 years, the U.S. taxpayer has already paid about $48 billion for Iraqi reconstruction.
The Bush Administration continues to request funds for Iraqi reconstruction – seeking about $3 billion in its current request.
Meanwhile, Iraqi oil revenues are expected to total $70 billion this year, according to the U.S. inspector general for Iraq reconstruction – a windfall from the high price of oil.
Due to its oil revenues, the Iraqi government is projected to have a budget surplus of about $60 billion this year – at the same time that the United States is running large budget deficits.
With its large oil revenues, it is time for the Iraqis to be shouldering more of the costs of rebuilding their country.
Excluding the Congress from these types of long-term security agreements turns the Constitution on its head and undermines the validity of these agreements.Prohibits establishing permanent U.S. bases in Iraq.
The perception that the United States intends to have permanent bases in Iraq aids extremists and insurgent groups in Iraq in recruiting supporters and fuels violent activity.
Clearly stating that the United States will not have a permanent presence in Iraq sends a strong signal to the Middle East and the broader international community that the U.S. fully supports the efforts of the Iraqi people to exercise full national sovereignty.
In its final report, in December 2006, the bipartisan Iraq Study Group recommended that the U.S. clearly state that our nation does not seek permanent bases in Iraq. It did so to help shape “a positive climate for…diplomatic efforts,” which is essential for bringing greater stability to the Middle East. Provides additional funding for Gulf Coast Recovery.
The amendment includes $5.8 billion for much-needed efforts to strengthen New Orleans levees in FY 2009, as requested by the President.
The amendment also includes $73 million for Louisiana housing vouchers, for permanent supportive housing vouchers targeted to the extremely low-income, disabled and elderly left homeless as a result of Hurricane Katrina.Provides $400 million in additional funding for science.
Due to the President’s inadequate cap on FY 2008 appropriations, the FY 2008 Omnibus Appropriations bill included insufficient levels of funding for key appropriations accounts for scientific research and innovation.
The amendment includes $400 million in additional, needed FY 2008 funding for science and innovation, providing additional funding at NIH, National Science Foundation, NASA, and the Department of Energy. Provides $150 million in additional funding for food and medical product safety.
The inadequate funding at the Food and Drug Administration to ensure the safety of our food supply, both domestic and imported, and the safety of medical products has been well-documented.
The amendment includes $150 million in additional, needed FY 2008 funding for the Food and Drug Administration to beef up efforts to ensure food and medical product safety for the American consumer. Provides an amendment to the War Funding.
The amendment reduces the DOD funding for the wars in Iraq and Afghanistan provided in Amendment #1 by $3.6 billion – bringing the funding down to $161.8 billion – in order to fund other pressing needs.
On June 19, 2008, the House passed the fiscal year 2008 supplemental, providing funding for Iraq, Afghanistan, veterans, workers, and Midwest disasters. The bill was signed into law on June 30, 2008. Speaker Pelosi voted against Amendment #1 and in favor of Amendment #2>>
Details of the LegislationThe proposal will be taken up as two amendments. These amendments include provisions to meet the needs of our troops, fully restore GI Bill education benefits for Iraq and Afghanistan veterans, provide emergency assistance to Americans struggling in an economy on the brink of recession, provide urgently-needed disaster relief in the response to the floods and tornadoes in the Midwest, and block damaging Medicaid regulations. There will be two separate votes on: 1) an amendment that provides funding for the wars in Iraq and Afghanistan; and 2) an amendment funding certain key priorities. There will be no vote on final passage.Amendment #1 provides $165.4 billion, as passed by the Senate in May, for DOD funding in FY 2008 and FY 2009 for the wars in Iraq and Afghanistan. (However, Amendment #2 reduces this funding to $161.8 billion.) Amendment #2 includes key domestic and humanitarian priorities, such as the new GI bill, extended unemployment benefits, domestic disaster relief, and international food assistance.For appropriated items, this bill is at the President’s request -- except for new disaster funding. Under consideration is $183.9 billion in outstanding appropriations requests from the President. This bill’s appropriations total is $186.5 billion – which stays within the requested level of appropriated dollars with the exception of $2.65 billion added for disaster relief in the aftermath of the devastating tornadoes and floods that have hit the Midwest. Other than the extra $2.65 billion for disaster relief, increases in the bill for such items as an addition of $500 million for international food aid are offset with reductions in other requested funding. Following are highlights of the provisions of these two amendments.Amendment #1: Funding for Wars in Iraq and AfghanistanAmendment #1 provides $165.4 billion for DOD funding of the wars in Iraq and Afghanistan, as passed by the Senate on May 22, 2008. This covers the costs of the wars through the summer of 2009. The total includes $99.5 billion for FY 2008 and $65.9 billion for FY 2009. However, Amendment #2 (see below) would reduce the funding by $3.6 billion for a new total of $161.8 billion for DOD funding of the wars in Iraq and Afghanistan. Amendment #2: Domestic and Humanitarian Priorities AmendmentProvides for the new GI Bill, which fully restores GI education benefits for Iraq and Afghanistan veterans to the level available after World War II.
The new GI bill restores full, four-year college scholarships to veterans of the Iraq and Afghanistan wars to help make them part of an economic recovery like the veterans of World War II.
It will give our returning troops the tools to succeed after military service and make military service more attractive as we work to rebuild our military, and strengthen our sagging economy.
Under the new GI bill, servicemembers returning from Iraq or Afghanistan, who have served 3 years on active duty, would receive benefits to cover the costs of a four-year education up to the level of the most expensive in-state public school.
Education benefits would be available to troops who have served at least 3 months of active duty since September 11, 2001, including members of the National Guard and Reserve.
The bill also allows service members with six years of service, coupled with an additional service agreement of four years, to transfer their educational benefits to their spouses and dependents.
The new GI bill is broadly supported by all major veterans’ organizations, including the American Legion, the Veterans of Foreign Wars, and Iraq and Afghanistan Veterans of America.Provides for extended unemployment benefits for those who have exhausted the 26 weeks of regular benefits.
The amendment would provide up to 13 weeks of extended unemployment benefits in every state to workers exhausting the 26 weeks of regular unemployment benefits.
For five consecutive months, the U.S. economy has lost jobs. In total, 324,000 jobs have disappeared.
1.6 million workers are long-term unemployed (jobless for more than 26 weeks), representing nearly one out of every five jobless workers.
The number of long-term unemployed Americans is higher now than when Congress last extended unemployment benefits in 2002.
Extending unemployment benefits will also help stimulate an economic recovery. CBO states that extending unemployment benefits is one of the most cost-effective and fastest-acting forms of economic stimulus because the money is spent quickly. Provides $2.65 billion for urgent disaster relief in response to Midwestern floods and tornadoes.
Over the last several weeks, disastrous floods and tornadoes have struck many states throughout the Midwest.
The amendment includes $2.65 billion in urgently-needed disaster relief in the aftermath of these floods and tornadoes, including additional funding for FEMA Disaster Relief accounts, SBA disaster loans, agriculture assistance, the Community Development Block Grant, the Economic Development Administration, and the Army Corps of Engineers.Places a moratorium until April 1, 2009 on six Administration-imposed Medicaid regulations, which would slash federal funding for vital programs and services.
If implemented, these regulations would reverse longstanding Medicaid policies and eliminate federal payments for a variety of critical Medicaid functions.
As a result, they would put in jeopardy needed services and protections for millions of vulnerable beneficiaries, as well as support for critical safety net institutions in states that are financially strapped.
These regulations would slash federal Medicaid funding to states for vital programs and services by billions of dollars over the next five years.
These regulations would particularly harm children and their access to health care – with 30 million children currently dependent on the Medicaid program. Provides a total of $10.1 billion for the State Department, USAID, and international food assistance, $670 million above the President’s request.
The amendment includes $1.9 billion, $745 million above the President’s request, for international food and disaster assistance. This includes $500 million above the President’s request for international food aid and $245 million above the President’s request for development assistance and disaster assistance programs meant to alleviate hunger.
The amendment includes $696 million, $475 million above the President’s request, for refugee assistance, to address the refugee crisis in Iraq and elsewhere.
The amendment provides $465 million, $85 million below the President’s request, for the Merida initiative to provide counter-narcotics and law enforcement assistance in Mexico ($400 million) and Central America ($65 million). Provides $2.2 billion over the President’s request to fully fund military quality of life initiatives – including funding for military child care centers, military hospitals and VA hospitals.
The amendment provides an additional $863 million over the President’s request to meet Base Realignment and Adjustment Commission (BRAC) requirements – funding improvements at military bases, benefiting our military families, as certain bases are realigned and closed.
It provides an additional $863 million over the President’s request for military hospitals, in order to prevent the types of problems that faced Walter Reed.
It provides an additional $396 million over the President’s request for VA hospitals and VA polytrauma centers.
In addition, it provides an additional $210 million for military child care centers. In his State of the Union, President Bush called for additional funding for military child care centers, but then neglected to include this funding in his budget. Requires that U.S. reconstruction aid for Iraq provided by the State Department and USAID be matched dollar-for-dollar by the Iraqi Government.
Over the last 5 years, the U.S. taxpayer has already paid about $48 billion for Iraqi reconstruction.
The Bush Administration continues to request funds for Iraqi reconstruction – seeking about $3 billion in its current request.
Meanwhile, Iraqi oil revenues are expected to total $70 billion this year, according to the U.S. inspector general for Iraq reconstruction – a windfall from the high price of oil.
Due to its oil revenues, the Iraqi government is projected to have a budget surplus of about $60 billion this year – at the same time that the United States is running large budget deficits.
With its large oil revenues, it is time for the Iraqis to be shouldering more of the costs of rebuilding their country.
Excluding the Congress from these types of long-term security agreements turns the Constitution on its head and undermines the validity of these agreements.Prohibits establishing permanent U.S. bases in Iraq.
The perception that the United States intends to have permanent bases in Iraq aids extremists and insurgent groups in Iraq in recruiting supporters and fuels violent activity.
Clearly stating that the United States will not have a permanent presence in Iraq sends a strong signal to the Middle East and the broader international community that the U.S. fully supports the efforts of the Iraqi people to exercise full national sovereignty.
In its final report, in December 2006, the bipartisan Iraq Study Group recommended that the U.S. clearly state that our nation does not seek permanent bases in Iraq. It did so to help shape “a positive climate for…diplomatic efforts,” which is essential for bringing greater stability to the Middle East. Provides additional funding for Gulf Coast Recovery.
The amendment includes $5.8 billion for much-needed efforts to strengthen New Orleans levees in FY 2009, as requested by the President.
The amendment also includes $73 million for Louisiana housing vouchers, for permanent supportive housing vouchers targeted to the extremely low-income, disabled and elderly left homeless as a result of Hurricane Katrina.Provides $400 million in additional funding for science.
Due to the President’s inadequate cap on FY 2008 appropriations, the FY 2008 Omnibus Appropriations bill included insufficient levels of funding for key appropriations accounts for scientific research and innovation.
The amendment includes $400 million in additional, needed FY 2008 funding for science and innovation, providing additional funding at NIH, National Science Foundation, NASA, and the Department of Energy. Provides $150 million in additional funding for food and medical product safety.
The inadequate funding at the Food and Drug Administration to ensure the safety of our food supply, both domestic and imported, and the safety of medical products has been well-documented.
The amendment includes $150 million in additional, needed FY 2008 funding for the Food and Drug Administration to beef up efforts to ensure food and medical product safety for the American consumer. Provides an amendment to the War Funding.
The amendment reduces the DOD funding for the wars in Iraq and Afghanistan provided in Amendment #1 by $3.6 billion – bringing the funding down to $161.8 billion – in order to fund other pressing needs.
Gulf Coast Recovery (The Money That They Claim We Got !)
PASSED LEGISLATIONSigned Into Law:
FY 2008 SupplementalProvides $5.8 billion for much-needed efforts to strengthen New Orleans levees in FY 2009, and includes $73 million for Louisiana housing vouchers, for permanent supportive housing vouchers targeted to the extremely low-income, disabled and elderly left homeless as a result of Hurricane Katrina. Learn more>>
FY 2007 SupplementalProvides $6.4 billion for Gulf Coast Recovery; the Democratic-led Congress added $3 billion to meet specific urgent needs of the Gulf Coast.Learn more>> Hurricanes Katrina and Rita Federal Match Relief ActWaives the local matching requirement for FEMA disaster relief projects, and provides $135 billion in Community Disaster loan forgivenessLearn more>>
Katrina Housing Tax Relief ActStrengthens tax incentives for building affordable rental housing in hurricane-affected areas of the Gulf Coast, and expands access to low-income financing for homeowners in the region.
Extending Access to Emergency Education AidExtends access to education emergency federal funding to pay teachers' salaries and operate schools for local school districts in areas impacted by Hurricanes Katrina and Rita.
RENEWAAL ActProvides $30 million to help public schools that were impacted by the hurricanes recruit and retain K-12 teachers and administrators, and $30 million to help higher education institutions in the Gulf Coast recruit and retain faculty and students. Extension of FEMA Utility Subsidy ProgramExtends for one more year FEMA's authority to reimburse local governments for the cost of paying the utility bills of essential local government employees still working and living in temporary housing.
Water Resources Development ActAuthorizes approximately $1.9 billion for the Corps of Engineers projects to restore the Louisiana Coastal Area and help prevent future hurricane damage. Learn more>>
To mark the three-year anniversary of Hurricanes Katrina and Rita, Speaker Nancy Pelosi and House Democrats recently took part in a congressional delegation to the Gulf Coast region, focusing on housing, health care, education, infrastructure, and public safety.
Democrats are delivering for the Gulf Coast region—including a recently-appropriated $5.8 billion for levees and coastal restoration, $73 million for public housing in New Orleans, $3 billion for the Road Home program, increased small business disaster loan assistance, and funding for higher education.
House Democrats have led three Congressional delegations to the Gulf Coast in the years following Hurricanes Katrina and Rita. In 2006, when the region was still reeling from the federal government’s incompetence and congressional inaction, House Democrats dispatched their first delegation to the Gulf Coast to assess the devastation and determine the needs. That trip was an important first step in an unwavering partnership House Democrats have established with the region—it informed the legislation that eventually became law in the first seven months of a new Democratic majority in the 110th Congress.
Last year, House Democrats provided effective results during their visit to the region—a waiver of the local matching requirement under the Stafford Act, saving the region $1.9 billion and triggering work on 20,000 stalled construction projects; $6.4 billion in assistance for levees, coastal restoration, teacher recruitment, school maintenance, health care, housing, small business, and law enforcement; and oversight from more than 30 congressional hearings on recovery.Congress is making dramatic progress in assisting residents of Louisiana and Mississippi in their recovery from the worst natural disaster in American history. Democratic leadership of the 110th Congress, which initiated much of the recovery aid now headed for the Gulf Coast, has led to a Partnership for the Future, to help ensure federal aid continues to flow to the region.
Hurricane Katrina resulted in more than 1,800 deaths, nearly 500,000 homes in Louisiana and Mississippi being destroyed or made uninhabitable, and about 1.5 million people being at least temporarily displaced from their homes. From housing to health care to education, the region remains in a state of crisis.Unfortunately, this natural disaster was made worse by a manmade disaster. The Bush Administration’s immediate disaster response to Katrina was marked by chaos, confusion, and incompetence. In addition, Katrina recovery and rebuilding contracts were marked by epic waste, fraud and abuse – with the American taxpayer paying the bill. Indeed, a disaster expert called FEMA’s Katrina housing effort “the largest disaster-response failure in the history of the country” – with the housing effort alone resulting in over $1 billion in waste and misspent funds. Furthermore, over the next year and a half, the Bush Administration and the GOP-led Congress failed to meet such critical needs as adequate levee protection, rebuilding funds, health care facilities, and resources for re-opening schools and universities.In 2006, the Democratic-led Congress acted immediately to meet the most critical needs of the region. The $6.4 billion Gulf Coast Recovery package was signed by the President in May, 2007, and includes:
Waiving the requirement that struggling local communities pay 10% of the costs of FEMA disaster recovery projects, thereby saving the Gulf Coast region $1.9 billion and allowing work on 20,000 stalled projects to begin;
$1.3 billion to repair and complete key levee protection and flood control projects in Louisiana and Mississippi;
$1.35 billion in Community Disaster Loan forgiveness;
$4.3 billion in FEMA disaster recovery grants, $1 billion over the President’s request;
Extending access to $550 million in Social Services Block Grant funding to meet the health care needs of the Gulf Coast region;
$30 million to recruit K-12 teachers and administrators and $30 million to recruit higher education faculty; and
Housing tax relief including extension of low-income housing tax credits.
Over the last three years, many resilient, hard-working Americans have returned to the Gulf Coast to attempt to rebuild their lives. This Congress will work with these committed individuals until the Gulf Coast is once again a thriving, vital part of the American family.
Gulf Coast Legislation Passed by the House:Gulf Coast Housing Recovery ActSpeeds the rebuilding of homes and affordable rental units, including by freeing up $1.2 billion for the Louisiana Road Home program; helps preserve the supply of affordable rental housing; helps families by extending the Disaster Voucher Program through January 1, 2008.Learn more>>RECOVER ActIncludes numerous provisions to overhaul the Small Business Administration's disaster assistance program in response to SBA's disastrous performance after the 2005 Gulf Coast hurricanes.Learn more>>Disadvantaged Business Disaster Eligibility ActEnsures that, for each small business that participates in the SBA 8(a) minority entrepreneur program and was affected by Hurricanes Katrina or Rita, the period in which it can participate in the 8(a) program is extended by 18 months.Learn more>>Accountability in Contracting ActIn response to the massive waste, fraud and abuse in Katrina-related contracts, requires federal agencies to minimize the use of "no-bid" contracts and promote the use of cost-effective fixed-price contracts.Learn more>>Federal Housing Finance Reform/Affordable Housing FundCreates a non-taxpayer financed Affordable Housing Fund, which during the first five years will go towards the construction of affordable housing in areas still recovering from Hurricane Katrina.Learn more>> Coverage of Hurricane Katrina in the Speaker’s blog, The Gavel>>
FY 2008 SupplementalProvides $5.8 billion for much-needed efforts to strengthen New Orleans levees in FY 2009, and includes $73 million for Louisiana housing vouchers, for permanent supportive housing vouchers targeted to the extremely low-income, disabled and elderly left homeless as a result of Hurricane Katrina. Learn more>>
FY 2007 SupplementalProvides $6.4 billion for Gulf Coast Recovery; the Democratic-led Congress added $3 billion to meet specific urgent needs of the Gulf Coast.Learn more>> Hurricanes Katrina and Rita Federal Match Relief ActWaives the local matching requirement for FEMA disaster relief projects, and provides $135 billion in Community Disaster loan forgivenessLearn more>>
Katrina Housing Tax Relief ActStrengthens tax incentives for building affordable rental housing in hurricane-affected areas of the Gulf Coast, and expands access to low-income financing for homeowners in the region.
Extending Access to Emergency Education AidExtends access to education emergency federal funding to pay teachers' salaries and operate schools for local school districts in areas impacted by Hurricanes Katrina and Rita.
RENEWAAL ActProvides $30 million to help public schools that were impacted by the hurricanes recruit and retain K-12 teachers and administrators, and $30 million to help higher education institutions in the Gulf Coast recruit and retain faculty and students. Extension of FEMA Utility Subsidy ProgramExtends for one more year FEMA's authority to reimburse local governments for the cost of paying the utility bills of essential local government employees still working and living in temporary housing.
Water Resources Development ActAuthorizes approximately $1.9 billion for the Corps of Engineers projects to restore the Louisiana Coastal Area and help prevent future hurricane damage. Learn more>>
To mark the three-year anniversary of Hurricanes Katrina and Rita, Speaker Nancy Pelosi and House Democrats recently took part in a congressional delegation to the Gulf Coast region, focusing on housing, health care, education, infrastructure, and public safety.
Democrats are delivering for the Gulf Coast region—including a recently-appropriated $5.8 billion for levees and coastal restoration, $73 million for public housing in New Orleans, $3 billion for the Road Home program, increased small business disaster loan assistance, and funding for higher education.
House Democrats have led three Congressional delegations to the Gulf Coast in the years following Hurricanes Katrina and Rita. In 2006, when the region was still reeling from the federal government’s incompetence and congressional inaction, House Democrats dispatched their first delegation to the Gulf Coast to assess the devastation and determine the needs. That trip was an important first step in an unwavering partnership House Democrats have established with the region—it informed the legislation that eventually became law in the first seven months of a new Democratic majority in the 110th Congress.
Last year, House Democrats provided effective results during their visit to the region—a waiver of the local matching requirement under the Stafford Act, saving the region $1.9 billion and triggering work on 20,000 stalled construction projects; $6.4 billion in assistance for levees, coastal restoration, teacher recruitment, school maintenance, health care, housing, small business, and law enforcement; and oversight from more than 30 congressional hearings on recovery.Congress is making dramatic progress in assisting residents of Louisiana and Mississippi in their recovery from the worst natural disaster in American history. Democratic leadership of the 110th Congress, which initiated much of the recovery aid now headed for the Gulf Coast, has led to a Partnership for the Future, to help ensure federal aid continues to flow to the region.
Hurricane Katrina resulted in more than 1,800 deaths, nearly 500,000 homes in Louisiana and Mississippi being destroyed or made uninhabitable, and about 1.5 million people being at least temporarily displaced from their homes. From housing to health care to education, the region remains in a state of crisis.Unfortunately, this natural disaster was made worse by a manmade disaster. The Bush Administration’s immediate disaster response to Katrina was marked by chaos, confusion, and incompetence. In addition, Katrina recovery and rebuilding contracts were marked by epic waste, fraud and abuse – with the American taxpayer paying the bill. Indeed, a disaster expert called FEMA’s Katrina housing effort “the largest disaster-response failure in the history of the country” – with the housing effort alone resulting in over $1 billion in waste and misspent funds. Furthermore, over the next year and a half, the Bush Administration and the GOP-led Congress failed to meet such critical needs as adequate levee protection, rebuilding funds, health care facilities, and resources for re-opening schools and universities.In 2006, the Democratic-led Congress acted immediately to meet the most critical needs of the region. The $6.4 billion Gulf Coast Recovery package was signed by the President in May, 2007, and includes:
Waiving the requirement that struggling local communities pay 10% of the costs of FEMA disaster recovery projects, thereby saving the Gulf Coast region $1.9 billion and allowing work on 20,000 stalled projects to begin;
$1.3 billion to repair and complete key levee protection and flood control projects in Louisiana and Mississippi;
$1.35 billion in Community Disaster Loan forgiveness;
$4.3 billion in FEMA disaster recovery grants, $1 billion over the President’s request;
Extending access to $550 million in Social Services Block Grant funding to meet the health care needs of the Gulf Coast region;
$30 million to recruit K-12 teachers and administrators and $30 million to recruit higher education faculty; and
Housing tax relief including extension of low-income housing tax credits.
Over the last three years, many resilient, hard-working Americans have returned to the Gulf Coast to attempt to rebuild their lives. This Congress will work with these committed individuals until the Gulf Coast is once again a thriving, vital part of the American family.
Gulf Coast Legislation Passed by the House:Gulf Coast Housing Recovery ActSpeeds the rebuilding of homes and affordable rental units, including by freeing up $1.2 billion for the Louisiana Road Home program; helps preserve the supply of affordable rental housing; helps families by extending the Disaster Voucher Program through January 1, 2008.Learn more>>RECOVER ActIncludes numerous provisions to overhaul the Small Business Administration's disaster assistance program in response to SBA's disastrous performance after the 2005 Gulf Coast hurricanes.Learn more>>Disadvantaged Business Disaster Eligibility ActEnsures that, for each small business that participates in the SBA 8(a) minority entrepreneur program and was affected by Hurricanes Katrina or Rita, the period in which it can participate in the 8(a) program is extended by 18 months.Learn more>>Accountability in Contracting ActIn response to the massive waste, fraud and abuse in Katrina-related contracts, requires federal agencies to minimize the use of "no-bid" contracts and promote the use of cost-effective fixed-price contracts.Learn more>>Federal Housing Finance Reform/Affordable Housing FundCreates a non-taxpayer financed Affordable Housing Fund, which during the first five years will go towards the construction of affordable housing in areas still recovering from Hurricane Katrina.Learn more>> Coverage of Hurricane Katrina in the Speaker’s blog, The Gavel>>
Finally Doing Something About Ending Homlessnes
On October 2, 2008, the House passed legislation that would expand the definition of homelessness by providing help to those who are in dire straits but are nonetheless ineligible for assistance under current law. The Community Partnership to End Homelessness Act, H.R. 7221, authored by Reps. Gwen Moore (WI) and Maxine Waters (CA), would give local governments the resources and flexibility needed to serve families and individuals in danger of ending up on the streets. Assistance for Those Fleeing from Domestic ViolenceThe measure ensures that those fleeing from domestic violence are counted as homeless and are eligible for aid. Those trying to escape from abuse should not be denied from shelters due to red-tape regulations. Improves Transition Assistance for Families Facing HomelessnessUnder current law, individuals and families are defined as homeless when they are within 7 days of losing their housing. In order to ease the disruption of the transition to a shelter or assisted housing, this legislation doubles the number of days to 14, so that families two weeks from losing their housing are eligible for aid. Gives Local Agencies Greater Resources to Directly Help Those at Risk of Becoming HomelessThis legislation would give localities additional flexibility to use federal homeless funds to prevent people with unstable housing situations from winding up on the street. Funds could be directed to help those doubled-up or “couch surfing” in others’ homes try to achieve a more stable housing situation.Learn more from Rep. Gwen Moore’s web site>>Watch Rep. Moore speak in support of the bill:
Watch Rep. Waters speak in support of the bill:
Speaker Pelosi on House Reauthorization of McKinney-Vento will Assist Homeless in San Francisco Washington, D.C. – Speaker Nancy Pelosi released the following statement on the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act, which passed the House by a vote of 355 to 61. The legislation reauthorizes the McKinney-Vento Homeless Assistance Act, the landmark homeless assistance legislation. “In San Francisco, there are more than 6,000 homeless men, women, and children. While the causes of homelessness are complex and challenging to resolve, the funding authorized by McKinney-Vento is critical to San Francisco and to cities and communities across the country. Reducing homelessness is the top priority for the City of San Francisco, and it is a priority for me in Congress. “Programs created by the McKinney-Vento Homeless Assistance Act have helped hundreds of thousands of homeless men, women, and children regain stability in their lives since the legislation was first authorized in 1987. The reauthorization of McKinney-Vento is a significant accomplishment that will ensure that federal funds are available to states, cities and non-profits providing services to homelessness individuals and those on the verge of homelessness.“The HEARTH Act expands the definition of homelessness, allowing for individuals and families on the precipice of homelessness to be eligible for assistance. The legislation gives cities across the country the flexibility to use federal homeless funds to address the needs of individuals in unstable housing situations as well as the chronically homeless. The legislation also includes provisions to provide assistance for individuals fleeing from situations of domestic violence, so that they are not prevented from entering shelters because of bureaucratic red tape. “While the City of San Francisco has developed innovative and effective initiatives to address homelessness, the city relies on the continued financial support of the federal government to operate existing programs and fund new ones. The legislation will ensure that San Francisco has access to the federal funding to provide programs for the chronically homeless as well as those at risk of becoming homeless.”
Watch Rep. Waters speak in support of the bill:
Speaker Pelosi on House Reauthorization of McKinney-Vento will Assist Homeless in San Francisco Washington, D.C. – Speaker Nancy Pelosi released the following statement on the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act, which passed the House by a vote of 355 to 61. The legislation reauthorizes the McKinney-Vento Homeless Assistance Act, the landmark homeless assistance legislation. “In San Francisco, there are more than 6,000 homeless men, women, and children. While the causes of homelessness are complex and challenging to resolve, the funding authorized by McKinney-Vento is critical to San Francisco and to cities and communities across the country. Reducing homelessness is the top priority for the City of San Francisco, and it is a priority for me in Congress. “Programs created by the McKinney-Vento Homeless Assistance Act have helped hundreds of thousands of homeless men, women, and children regain stability in their lives since the legislation was first authorized in 1987. The reauthorization of McKinney-Vento is a significant accomplishment that will ensure that federal funds are available to states, cities and non-profits providing services to homelessness individuals and those on the verge of homelessness.“The HEARTH Act expands the definition of homelessness, allowing for individuals and families on the precipice of homelessness to be eligible for assistance. The legislation gives cities across the country the flexibility to use federal homeless funds to address the needs of individuals in unstable housing situations as well as the chronically homeless. The legislation also includes provisions to provide assistance for individuals fleeing from situations of domestic violence, so that they are not prevented from entering shelters because of bureaucratic red tape. “While the City of San Francisco has developed innovative and effective initiatives to address homelessness, the city relies on the continued financial support of the federal government to operate existing programs and fund new ones. The legislation will ensure that San Francisco has access to the federal funding to provide programs for the chronically homeless as well as those at risk of becoming homeless.”
Unemployment Compensation Extension Act
On October 3, 2008, the House passed H.R. 6867, Unemployment Compensation Extension Act. The bill provides an additional 7 weeks of extended unemployment benefits for workers who have exhausted their unemployment benefits (providing 20 total weeks of extended benefits when combined with the 13 weeks provided earlier this year). On November 21, the President signed the bill into law. The New Direction Congress is committed to providing much-needed relief to the millions unemployed workers to assist them with rapidly rising gas and food costs, while they continue to struggle to find work in this economic downturn. Earlier this year, we enacted a bipartisan compromise to provide extended unemployment benefits. But those benefits will start to run out in October unless Congress acts. With today’s news of another 159,000 American jobs lost in September – the worst job loss in five years -- this action is critical to providing relief as well as strengthening the American economy and creating jobs. Relief to America’s Workers, Effective Stimulus for the Economy
Provides an additional 7 weeks of extended unemployment benefits for workers who have exhausted regular unemployment compensation (20 total weeks when combined with the 13 weeks provided earlier this year).
Nearly 800,000 workers are projected to exhaust their current extended unemployment benefits in October unless Congress acts.
Earlier this year, Congress helped 3.5 million Americans looking for jobs -- providing up to 13 weeks of extended unemployment benefits in every state to workers exhausting the 26 weeks of regular unemployment benefits.
Under the measure, workers in high unemployment states are eligible for an additional 13 weeks of benefits (33 total weeks).
Extending these benefits is one of the most cost-effective and fast-acting ways to stimulate the economy because the money is spent quickly, according to the Congressional Budget Office. Every $1 spent on unemployment benefits generates $1.64 in new economic demand. [Mark Zandi, chief economist of Moody’s Economy.com, 1/22/08]
The $6 billion in benefits will be paid from the Federal unemployment trust fund, which has more than enough reserves to cover the cost.Need for Immediate Action is Real
America has suffered a ninth straight month of job losses totaling 760,000 this year. Job losses totaled 159,000 in September – the worst job loss in five years.
The number of Americans looking for work climbed to 9.5 million in September – the highest number since December 1992. Over the past 12 months, the number of unemployed persons has increased by 2.2 million and the unemployment rate has risen by 1.4 percentage points.
The unemployment rate continued at 6.1 percent -- the highest level in five years (September 2003).
One in five (2 million) of those looking for work have been jobless for more than six months.
Average wages have risen 3.4% in the past year, while prices have gone up nearly 6%.
The American people are working harder, but making less -- even in the face of rising costs of health care, energy, and education. Since 2000, worker productivity is up, but the purchasing power of the typical working age family’s income is down by more than $2,000. As a result, 5.7 million more Americans are living in poverty and 7.2 million more Americans are without health care than in 2000.
Food prices have risen at annual rate of 7.5 percent so far this year.
Retail gas prices are at $3.58 a gallon – more than double that of 2001 – after peaking at $4.11 in July. And heating costs are expected to reach record levels again this winter – with heating oil costs rising 30 percent and families pending an average of $2,500 this winter.
Provides an additional 7 weeks of extended unemployment benefits for workers who have exhausted regular unemployment compensation (20 total weeks when combined with the 13 weeks provided earlier this year).
Nearly 800,000 workers are projected to exhaust their current extended unemployment benefits in October unless Congress acts.
Earlier this year, Congress helped 3.5 million Americans looking for jobs -- providing up to 13 weeks of extended unemployment benefits in every state to workers exhausting the 26 weeks of regular unemployment benefits.
Under the measure, workers in high unemployment states are eligible for an additional 13 weeks of benefits (33 total weeks).
Extending these benefits is one of the most cost-effective and fast-acting ways to stimulate the economy because the money is spent quickly, according to the Congressional Budget Office. Every $1 spent on unemployment benefits generates $1.64 in new economic demand. [Mark Zandi, chief economist of Moody’s Economy.com, 1/22/08]
The $6 billion in benefits will be paid from the Federal unemployment trust fund, which has more than enough reserves to cover the cost.Need for Immediate Action is Real
America has suffered a ninth straight month of job losses totaling 760,000 this year. Job losses totaled 159,000 in September – the worst job loss in five years.
The number of Americans looking for work climbed to 9.5 million in September – the highest number since December 1992. Over the past 12 months, the number of unemployed persons has increased by 2.2 million and the unemployment rate has risen by 1.4 percentage points.
The unemployment rate continued at 6.1 percent -- the highest level in five years (September 2003).
One in five (2 million) of those looking for work have been jobless for more than six months.
Average wages have risen 3.4% in the past year, while prices have gone up nearly 6%.
The American people are working harder, but making less -- even in the face of rising costs of health care, energy, and education. Since 2000, worker productivity is up, but the purchasing power of the typical working age family’s income is down by more than $2,000. As a result, 5.7 million more Americans are living in poverty and 7.2 million more Americans are without health care than in 2000.
Food prices have risen at annual rate of 7.5 percent so far this year.
Retail gas prices are at $3.58 a gallon – more than double that of 2001 – after peaking at $4.11 in July. And heating costs are expected to reach record levels again this winter – with heating oil costs rising 30 percent and families pending an average of $2,500 this winter.
Credit Cardholders Bill of Rights
On September 23, 2008, the House passed the Credit Cardholders’ Bill of Rights, H.R. 5244, which provides crucial protections against unfair, but unfortunately common, credit card practices, including:
Ending unfair, arbitrary interest rate increases, by requiring ample notice before rate hikes and permitting lenders to raise rates on existing balances only if minimum payments are more than 30 days late (except for increases caused by changes in stated variable and introductory offers).
Ending penalties on cardholders who pay on time, like charging interest on already repaid debt.
Protecting consumers from due date gimmicks by requiring credit card companies to mail bills 25 days (instead of 14) before the due date.
Ending the credit card practice of applying consumer payments to lower interest debt first.Ends Unfair, Arbitrary Interest Rate Increases
Prevents card companies from unfairly increasing interest rates on existing card balances – retroactive increases are permitted only if a cardholder is more than 30 days late, if a pre-agreed promotional rate expires, or if the rate adjusts as part of a variable rate.
Requires card companies to give 45 days notice of all interest rate increases so consumers can pay off their balances and shop for a better deal.Lets Consumers Set Hard Credit Limits, Stops Excessive “Over-the-Limit” Fees
Requires companies to let consumers set their own fixed credit limit.
Prevents companies from charging “over-the-limit” fees when a cardholder has set a limit, or when a preauthorized credit “hold” pushes a consumer over their limit.
Limits (to 3) the number of over-the-limit fees companies can charge for the same transaction – some issuers now charge virtually unlimited fees for a single limit violation. Ends Unfair Penalties for Cardholders Who Pay on Time
Ends unfair “double cycle” billing – card companies couldn’t charge interest on debt consumers have already paid on time.
If a cardholder pays on time and in full, the bill prevents card companies from piling additional fees on balances consisting solely of left-over interest. Requires Fair Allocation of Consumer Payments
Many companies credit payments to a cardholder’s lowest interest rate balances first, making it impossible for the consumer to pay off high-rate debt. The bill bans this practice, generally requiring payments to be allocated proportionally to balances that have different rates.Protects Cardholders from Due Date Gimmicks
Among other measures, requires card companies to mail billing statements 25 calendar days before the due date (up from the current 14 days), and to credit as “on time” payments made before 5 p.m. local time on the due date.Prevents Companies from Using Misleading Terms and Damaging Consumers’ Credit Ratings
Establishes standard definitions of terms like “fixed rate” and “prime rate” so companies can’t mislead or deceive consumers in marketing and advertising.
Gives consumers who are pre-approved for a card the right to reject that card prior to activation without negatively affecting their credit scores. Protects Vulnerable Consumers From High-Fee Subprime Credit Cards
Prohibits issuers of subprime cards (where total yearly fixed fees exceed 25 percent of the credit limit) from charging those fees to the card itself. These cards are generally targeted to low-income consumers with weak credit histories.Bars Issuing Credit Cards to Vulnerable Minors
Prohibits card companies from knowingly issuing cards to individuals under 18 who are not emancipated minors.
Background
At a time when the Bush Administration has proposed a massive bailout of Wall Street, Congress is working to help protect the families on Main Street facing unfair practices from the credit card industry.Credit-card debt in the U.S. has reached a record high —nearly $1 trillion -- and the average American household’s debt from credit cards has risen from $2,966 in 1990 to $9,840 in 2007. And with the economy slowing, costs of daily living and unemployment rising, growing numbers of cardholders are unable to keep up with their payments.The debt crisis inundating so many Americans is partly the result of an industry with few regulations and little oversight. Consumers nationwide are facing excessive credit card fees, sky-high interest rates, and unfair, incomprehensible agreements that credit-card companies revise at will.In 2007, credit-card issuers imposed $18.1 billion in penalty fees on families carrying credit card balances—up more than 50% since 2003 and accounting for nearly half of the $40.7 billion in industry profits. This year, card companies will break all records for late fees, over-limit charges, and other penalties, pulling in more than $19 billion.The Credit Cardholders' Bill of Rights puts into law a number of regulations proposed by the Federal Reserve Board from earlier this year. The Fed has recognized that abusive credit practices distort the free market and competition. While protecting consumers, the measure allows credit card companies to take steps to account for the financial risk of the consumers to whom they are lending money.Because it is time to make sure that the market works for the American people with common sense regulations of the financial services industries, the bill is supported by consumer organizations (Consumers Union, Consumer Federation of America, Center for Responsible Lending, National Consumer Law Center, Consumer Action, National Community Reinvestment Coalition), civil rights groups (Leadership Conference on Civil Rights, National Council of La Raza, LULAC, NAACP, MALDEF, AAUW), public interest groups (Public Citizen, U.S. PIRG), and labor unions (AFL-CIO, SEIU, American Federation of Teachers, and UAW).
Ending unfair, arbitrary interest rate increases, by requiring ample notice before rate hikes and permitting lenders to raise rates on existing balances only if minimum payments are more than 30 days late (except for increases caused by changes in stated variable and introductory offers).
Ending penalties on cardholders who pay on time, like charging interest on already repaid debt.
Protecting consumers from due date gimmicks by requiring credit card companies to mail bills 25 days (instead of 14) before the due date.
Ending the credit card practice of applying consumer payments to lower interest debt first.Ends Unfair, Arbitrary Interest Rate Increases
Prevents card companies from unfairly increasing interest rates on existing card balances – retroactive increases are permitted only if a cardholder is more than 30 days late, if a pre-agreed promotional rate expires, or if the rate adjusts as part of a variable rate.
Requires card companies to give 45 days notice of all interest rate increases so consumers can pay off their balances and shop for a better deal.Lets Consumers Set Hard Credit Limits, Stops Excessive “Over-the-Limit” Fees
Requires companies to let consumers set their own fixed credit limit.
Prevents companies from charging “over-the-limit” fees when a cardholder has set a limit, or when a preauthorized credit “hold” pushes a consumer over their limit.
Limits (to 3) the number of over-the-limit fees companies can charge for the same transaction – some issuers now charge virtually unlimited fees for a single limit violation. Ends Unfair Penalties for Cardholders Who Pay on Time
Ends unfair “double cycle” billing – card companies couldn’t charge interest on debt consumers have already paid on time.
If a cardholder pays on time and in full, the bill prevents card companies from piling additional fees on balances consisting solely of left-over interest. Requires Fair Allocation of Consumer Payments
Many companies credit payments to a cardholder’s lowest interest rate balances first, making it impossible for the consumer to pay off high-rate debt. The bill bans this practice, generally requiring payments to be allocated proportionally to balances that have different rates.Protects Cardholders from Due Date Gimmicks
Among other measures, requires card companies to mail billing statements 25 calendar days before the due date (up from the current 14 days), and to credit as “on time” payments made before 5 p.m. local time on the due date.Prevents Companies from Using Misleading Terms and Damaging Consumers’ Credit Ratings
Establishes standard definitions of terms like “fixed rate” and “prime rate” so companies can’t mislead or deceive consumers in marketing and advertising.
Gives consumers who are pre-approved for a card the right to reject that card prior to activation without negatively affecting their credit scores. Protects Vulnerable Consumers From High-Fee Subprime Credit Cards
Prohibits issuers of subprime cards (where total yearly fixed fees exceed 25 percent of the credit limit) from charging those fees to the card itself. These cards are generally targeted to low-income consumers with weak credit histories.Bars Issuing Credit Cards to Vulnerable Minors
Prohibits card companies from knowingly issuing cards to individuals under 18 who are not emancipated minors.
Background
At a time when the Bush Administration has proposed a massive bailout of Wall Street, Congress is working to help protect the families on Main Street facing unfair practices from the credit card industry.Credit-card debt in the U.S. has reached a record high —nearly $1 trillion -- and the average American household’s debt from credit cards has risen from $2,966 in 1990 to $9,840 in 2007. And with the economy slowing, costs of daily living and unemployment rising, growing numbers of cardholders are unable to keep up with their payments.The debt crisis inundating so many Americans is partly the result of an industry with few regulations and little oversight. Consumers nationwide are facing excessive credit card fees, sky-high interest rates, and unfair, incomprehensible agreements that credit-card companies revise at will.In 2007, credit-card issuers imposed $18.1 billion in penalty fees on families carrying credit card balances—up more than 50% since 2003 and accounting for nearly half of the $40.7 billion in industry profits. This year, card companies will break all records for late fees, over-limit charges, and other penalties, pulling in more than $19 billion.The Credit Cardholders' Bill of Rights puts into law a number of regulations proposed by the Federal Reserve Board from earlier this year. The Fed has recognized that abusive credit practices distort the free market and competition. While protecting consumers, the measure allows credit card companies to take steps to account for the financial risk of the consumers to whom they are lending money.Because it is time to make sure that the market works for the American people with common sense regulations of the financial services industries, the bill is supported by consumer organizations (Consumers Union, Consumer Federation of America, Center for Responsible Lending, National Consumer Law Center, Consumer Action, National Community Reinvestment Coalition), civil rights groups (Leadership Conference on Civil Rights, National Council of La Raza, LULAC, NAACP, MALDEF, AAUW), public interest groups (Public Citizen, U.S. PIRG), and labor unions (AFL-CIO, SEIU, American Federation of Teachers, and UAW).
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