A Weekly Newsletter from Congressman Randy Neugebauer

July 28, 2008

While this week’s Roundup is longer than my typical weekly update, there are several items being debated in Congress that are critical to the American people. As Congress enters its last week of votes before the District Work Period, I want to make sure to update you on all the important issues.

Continuing To Work On Solutions Toward America’s Energy Independence

As the debate on America’s energy crisis continues, I have been working with my colleagues to provide real solutions to the very real problem of America’s energy dependence. I am disappointed, however, by some of my colleagues. They have thus far refused to bring any Republican proposed bills to the floor for a vote.

While we cannot drill our way out of the problem, we can, and must say YES to every potential resource, whether traditional fuel or alternatives. We must open every door and tap into new technologies and America’s limitless potential to become energy independent and do “all of the above,” when it comes to domestic energy production.

I strongly encourage leadership in the House to use this week to pass much-needed legislation to help increase our supply of energy and help reduce costs.

Standing Up For Taxpayers and Supporting Our Economy

While there has been significant turmoil in the housing market, I firmly believe that government interference should be limited and taxpayers should never be “put on the hook” to bail out those who acted improperly or made poor choices.

That is why I voted against H.R. 3221 last week, legislation that would grant open-ended authority for the federal government to lend funds to Fannie Mae and Freddie Mac, as well as create a new program to help lenders bail out of their riskiest home loans. Unfortunately, this legislation passed the House and the Senate, and it appears that President Bush will now move to sign this into law.

This bill will only make matters worse, particularly for the taxpayers. At a time when 94 percent of Americans are paying their mortgage in full and on time, they should not have to make their neighbor’s mortgage payment as well.

H.R. 3221 contained long overdue reforms I have supported, such as a new, stronger regulator for Fannie Mae and Freddie Mac and modernization of the Federal Housing Administration (FHA) to make it a better alternative for borrowers than subprime loans.

However, the bill also included items that pose risks to the taxpayers and the economy. At a time when the housing market is relying on Fannie and Freddie to help lenders be able to provide mortgages to consumers, Congress should not divert money from them into a new Housing Fund. It makes even less sense that Congress would set up this fund at the same time we are giving the Treasury Department a blank check to support these entities, if needed.

I believe the best signal the federal government can send to the markets and the taxpayers is that it is done intervening. We must remember that markets are not always kind, but they are efficient. The sooner the federal government steps back, the sooner capital will come off the sidelines and back into the marketplace.

Today I had the opportunity today to discuss our nation’s economy with Federal Reserve Board Chairman Ben Bernanke.  I appreciate the efforts he is part of to help provide short-term support to the economy while also working to ensure long-term growth and stability.  Balancing considerations that promote economic growth and those that contain inflation is a difficult mandate, but I have confidence in Chairman Bernanke’s leadership and knowledge of our economy.

Failing To Address Medicare’s Future Shortfall

I am deeply disturbed by the Democrat Majority’s decision to ignore the warning that future costs of  Medicare are becoming more and more unsustainable and leaving the problem to be fixed another day. Last week, the Majority voted to prevent required debate on future sustainability of Medicare for the rest of the 110th Congress. Ignoring the problem will not make it go away. This is reckless and puts our seniors who rely on Medicare and future generations at risk.

Now is not the time to avoid debate. Rather, we need to embrace our responsibility as a Congress to provide the long term solutions Americans deserve from this body. I am truly disappointed by this “head in the sand” approach. We only face greater challenges tomorrow by ignoring the debate today.

For the third consecutive year, the Medicare Trustees have reported to Congress that more and more of Medicare’s costs will not be covered by payroll taxes, co-pays and premiums, leaving 45 percent of Medicare unfunded down the road.  Reforms are needed to ensure this program can continue over the long term without leaving trillions of dollars in unfunded promises.

I was proud to put seniors and the American taxpayer first by standing up against the Majority’s efforts to close debate on Medicare legislation.  Preventing this debate comes at the expense of seniors as well as the financial solvency of a program on which Americans depend.

CRP Update

I was pleased last week to learn that the Temporary Restraining Order (TRO) that prevented farmers and ranchers from haying and grazing livestock on CRP land was lifted.  Judge John Coughenour’s ruling will allow farmers and ranchers to immediately resume usage to feed and forage on their CRP acres during a time when livestock feed is very costly and hard to come by.

The final ruling will allow CRP contract holders who applied and were approved for the CFU program before the July 8, 2008 ruling, to immediately resume haying and grazing until November 10, 2008. Applications that were received prior to July 8th but were not yet processed by the Farm Service Agency will continue to be processed, and those that are approved will be allowed to hay through September 30, 2008, or graze through October 15, 2008. Furthermore, producers still wishing to apply can do so they if explain they had relied on the CFU program and have invested more than $4,500 preparing their land.

As always, when events unfold in Washington, I will be sure to update you. In the meantime, do not hesitate to visit my website www.randy.house.gov, or call my office toll free district wide at (888) 763-1611 or my Washington, DC office at 202-225-4005.