Economy

Over the past three years, our country has confronted some of the most troubling economic challenges in its history.  On December 1, 2008, the National Bureau of Economic Research officially announced what most already knew; our country is in a recession.  The numbers are truly staggering: at least 10% of all homeowners have been late for at least one mortgage payment and some estimate that two million foreclosures are expected through the end of 2009.  Our economy has shed nearly 8 million jobs since December 2007, resulting at one point in an unemployment rate of 10.1%, the highest in 26 years.  Individual retirement funds have lost billions in equity and the number of individuals qualifying for food stamps has increased to over 30 million people for the first time in the history of the program.  As conditions have worsened, businesses of all sizes have failed or are nearing failure.  In fact, one of our nation’s largest and most important industries, automobile manufacturing, risks complete failure. 

I continue to be concerned about the future of our economy.  I am encouraged by recent statements by the Chairman of the Board of Governors of the United States Federal Reserve Ben Bernanke that indicate our economy may be strengthening.  However, I know that many Americans and Marylanders continue to face job loss, foreclosure, and other hardships as a result of this recession.  It is important that Congress and the Obama Administration take bold steps to facilitate an effective economic recovery.

Legislation enacted in 2008 created the Troubled Asset Relief Program (TARP).  This program was aimed at strengthening the balance sheets of banks.  It is important that adequate oversight is provided by Congress in order to protect this investment of taxpayer money by the Treasury. 

Recently, there have been many oversight hearings to assess the use of TARP funds.  These hearings have emphasized many of the shortcomings of TARP, as implemented, and also revealed several needed reforms.  As a result, on January 21, 2009, I joined my colleagues in the House of Representatives to pass the TARP Reform and Accountability Act, H.R. 384, by a vote of 260 to 166.  This bill requires the Department of Treasury to dedicate up to $100 billion and a minimum of $40 billion, toward foreclosure mitigation, which will directly help struggling homeowners.  Additionally, this legislation imposes new restrictions on the use of funds and requires additional oversight by the federal government on the implementation of TARP.  This measure is pending consideration in the U.S. Senate.

Additionally, the Congressional Oversight Panel (COP), the body created by Congress to provide oversight of the TARP, held a field hearing in the Fourth Congressional District of Maryland.  At this hearing, I addressed the panel members about the significant troubles in the housing market and the effect foreclosures have had on our neighborhoods and communities.  I am pleased that the COP is holding hearings, and it is my hope that rigorous oversight continues.

As we move forward, Congress will continue to consider measures that will assist homeowners, create jobs, and make necessary investments in our nation’s infrastructure and core capabilities such as science and technology.  For instance, Congress passed the American Recovery and Reinvestment Act, which will provide over $800 billion in funding for important programs throughout the country and $3.9 billion for the state of Maryland.  This legislation will save or create up to 3.5 million American jobs and 66,000 jobs in Maryland, while restoring our nation’s economy as the strongest in the world.  This important bill was signed into law by President Obama.  You can track the progress of this recovery act and the way the funds are spent at: http://www.recovery.gov. I encourage you to contact me and I will keep your thoughts in mind as I work with my colleagues to forge policies that will strengthen our nation and quicken our economic recovery.