BAILOUT RAISES NATIONAL DEBT CEILING BY $800 BILLION

WASHINGTON, D.C. – The U.S. House of Representatives today voted (272-152) for broad legislation to address the ailing housing market and the giant government-sponsored mortgage buyers, Fannie Mae and Freddie Mac. Congresswoman Nancy Boyda (Kansas Second District) broke party ranks to vote against the legislation.

Boyda issued this statement in response to today’s vote:

“I supported earlier versions of this housing bill that were centered around a housing rescue program that carefully balanced economic benefit and taxpayer protection. That program ensured that there was give and take; everyone who benefited also had to pay. I supported that bill because I believe in that philosophy. For the same reason, I can not support this bill.

This bill gives the U.S. Secretary of the Treasury a blank check to put as much money into Fannie Mae and Freddie Mac as he deems necessary. The money comes with no strings attached and no protections for the taxpayer. The previous housing bill was all about give and take. The bailout for Fannie and Freddie just gives and gives and gives – all, ultimately, at the expense of the American taxpayers. Privatizing profits and socializing losses is not the way to fix this mess.

Of course, the government is already in deficit, so any money for Fannie and Freddie will have to be borrowed from China. To make room for that, this legislation increases our national debt ceiling $800 billion – from $9.8 trillion to $10.6 trillion! That is simply staggering!

Fannie and Freddie are key players in the mortgage market, and it is in everyone's interest to get that market functioning smoothly again. However, this legislation overreacts. There has to be a better solution than writing a blank check with no strings attached. I hope to have the opportunity to vote for balanced housing legislation that protects taxpayers as well as homeowners, shareholders, and creditors.”