War Supplemental Update: Blue Dogs Balk at Waiving PAYGO for GI Bill Extension

Just when Democratic House leadership thought it was safe to bring a $183.6* billion war supplemental spending bill to the House floor for a vote, the Blue Dog coalition bares their teeth. We briefly mentioned yesterday that the coalition has expressed their displeasure that an expansion of college benefits for veterans would not be offset. By signaling that they would not support the rules package under which the war supp would be debated, they have induced Democratic leadership to find offsets, thus postponing a vote until at least next week. The provision is question is know in the Senate as the Post 9/11 Veterans Educational Assistance Act of 2008 (S. 22), a bill introduced by Sen. Jim Webb (D-VA) and cosponsored by 57 senators. The CBO scored the bill as costing $40 million the first year, $680 million the second, and totalling almost $52 billion over ten years. Blue Dogs' insistence on offsetting these costs has drawn the ire of the Out of Iraq Caucus. Rep. Maurice Hinchey (D-NY) was incredulous ($). "How can the Blue Dog Coalition possibly say that an expansion of education benefits is too costly when their votes to spend hundreds of billions of dollars to fight in Iraq violate the same pay-as-you-go rules they claim to so deeply respect? It's an inconsistent logic." But, is Hinchey right to insist the Blue Dogs selectively apply PAYGO? *That's the commonly-used dollar amount in press accounts. That number, however, does not include $11 billion for extended unemployment benefits (over 10 ten years) and $720 million for expanded GI Bill benefits (over 2 years). With those factored in, the bill would be about $200 billion

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Housing Debate: Real(i)ty Trumps Ideology

Most of the reasons offered up by President Bush and congressional opponents of the housing crisis plan sponsored by House Financial Services Committee chair Rep. Barney Frank (D-MA) have a yellow, off-tone ring to them.

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DAILY FISCAL POLICY REPORT -- May 9, 2008

Housing -- House Passes Two Key Housing Bills: Yesterday, the House passed the first two bills to clear the chamber addressing the nation's housing sector crisis. The first, the Neighborhood Stabilization Act, which was adopted 239-188, establishes a $15 billion, HUD-administered loan and grant program for the purchase and rehabilitation of vacant, foreclosed homes. The second, an FHA mortgage refinance program providing up to $300 billion in loan guarantees at a cost of $1.7 billion over five years, passed 266-154. Bill Summary. Both bills face veto threats.

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House Passes First of Housing Bills, 239-188

This afternoon, the House adopted the first in a set of housing-related bills, H.R. 5818, the Neighborhood Stabilization Act, by a vote of 239-188. The bill would establish a $15 billion, HUD-administered loan and grant program for the purchase and rehabilitation of vacant, foreclosed homes with the goal of occupying them as soon as possible. One half of the funds ($7.5 billion) would be for loans; half ($7.5 billion) would be for grants. The bill:

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    Monthly Budget Review: April, 2008

    Receipts from tax returns filed by the April 15 deadline were about 6 percent higher than such receipts last year, about what CBO anticipated when it prepared its most recent budget projections in March. Nevertheless, the federal government recorded a deficit of $151 billion for the first seven months of fiscal year 2008, CBO estimates—$70 billion more than the shortfall incurred in the same period last year. ...

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    California City Declares Bankruptcy, Citing Housing, Economy

    The New York Times reports today that the Vallejo (CA) City Council voted unanimously Tuesday night to declare bankruptcy in the face of dwindling tax revenues, the housing market meltdown and a faltering economy. Vallejo has 117,000 residents.

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    DAILY FISCAL POLICY REPORT -- May 8, 2008

    War Supplemental -- Blue Dogs Hold Line on PAYGO: Frustrating House Democratic leadership efforts to bring to a vote on the $183.6 billion war supplemental spending bill to the House floor today, the Blue Dog coalition is balking at supporting the rules under which the bill would be considered. Their concern is that a measure to increase GI Bill funding violates pay-as-you-go rules, because it would be a new entitlement not be offset by revenue increases or spending decreases.

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    UI Extension: Does the Unemployment Rate Matter?

    Since the beginning of the year, when talk of a recession was first heard, Congress has been debating whether or to extend unemployment insurance (UI) benefits by 13 weeks -- as it has done during every single recession, with one exception, for the past 50 years.

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    More on the OSC Raids

    Yesterday, we noted that the FBI raided the home and office of Office of Special Counsel Scott Bloch. More news reports on the raids are out today. It appears that raids are part of a grand jury subpoenas related to the OSC's investigation of the use of federal resources for political activities by the White House, including Bloch's investigation of now-fired GSA head Lurita Doan.

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    Bush Issues Veto Threat Against Frank Housing Bill

    But It May Not Turn Out to be a Veto Promise After sending mixed signals for weeks about H.R. 5830, the Frank FHA mortgage refinaince loan guarantee program, President Bush issued a Statement of Administration Policy (SAP) opposing a number of provisions in the housing stimulus package (H.R. 3221) being considered on the House floor today and declaring that he would veto the package in its current form.

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