Recently in Washington

Last week the House passed H.R. 5072, the FHA Reform Act.

Simpson Questions Bernanke on the Economy and the National Debt
Congressman Mike Simpson, a member of the House Budget Committee, last week questioned Federal Reserve Chairman Ben Bernanke on the economy, the national debt, and the budget.  The hearing occurred the day after a report from the Treasury Department was released stating that the U.S. debt will top $13.6 trillion this year and reach an estimated $19.6 trillion by 2015.

“My main take-away from this hearing is that Chairman Bernanke, our nation’s top banker, feels that Congress’ inability to address the national debt or to pass a budget will have a negative effect on the economy,” said Simpson. He added, “The American people are demanding a plan to address the national debt and pass a responsible budget.  Democratic leadership and the Administration must present a plan, or in the very least, allow the Republicans to put theirs forward.”

It is looking more and more likely that for the first time since the modern budgeting system was created in 1974, the House of Representatives will not consider a federal Budget. This is happening while people across the country remain unemployed, our national debt continues to grow, and government spending skyrockets.

“We all agree that the federal budget is on an unsustainable path,” said Simpson. “More spending and artificial stimulation of the economy is not the answer. Instead, Congress can develop both short and long term solutions to the debt problem, which will inspire more confidence in the markets, and help turn the economy around.”

Delegation, Mayor Announce TRACON Will Stay
Decision by FAA to keep radar in Boise a plus for airport safety, jobs

Members of Idaho’s Congressional Delegation and Boise Mayor David Bieter announced last week that the Boise Airport will retain the TRACON radar control system.  During personal telephone calls to Delegation Members and the Mayor, U.S. Transportation Secretary Ray LaHood said the department is dropping plans to co-locate the Boise TRACON with Salt Lake City.

The Federal Aviation Administration (FAA) had wanted to move the Boise system because of alleged cost savings, but the Delegation and Mayor had challenged the budget figures and argued that safety and jobs would be best preserved by keeping the existing system in place with the move to a new airport control tower.  Secretary Ray LaHood agreed. 

“I appreciate speaking with Secretary LaHood today and applaud his decision to maintain a Terminal Approach Radar in Boise,” said Senator Mike Crapo.  “This is the best solution in terms of cost and safety for Southwest Idaho air traffic control. Additionally, it will preserve good-paying jobs at the Boise Airport as we build toward future growth and development.”

“Leaving the TRACON in Boise was the right decision for the FAA to make.  From a cost and efficiency standpoint the facts are clear that leaving the radar operation in Boise was the only decision they could make,” said Senator Jim Risch.

“I was pleased to speak directly with the Secretary today and am glad that the FAA has made a decision that looks to the best interests of Idahoans and is based on facts instead of best guesses,” said Congressman Mike Simpson.  “With this decision behind us, I am hopeful that we can look forward to ensuring that the Boise Airport can continue to support economic growth in the Treasure Valley.”

“This is great news for Idaho travelers and for Idaho's economy,” said Congressman Walt Minnick.  “The decision to keep the TRACON tower at the Boise Airport is not only the most cost-effective solution for taxpayers, but it is also a fitting way to remember and honor the legacy of my friend Ed Stimpson, who was a true leader in aviation safety. Not only will passengers be more certain of safe travel, but the men and women who keep them safe will continue to do their jobs in Idaho and help keep our economy on the road to recovery.”

"This decision is great news for Boise and for every traveler and business that depends on the Boise Airport," Mayor David Bieter said. "By keeping TRACON here, we will preserve high quality local jobs, ensure continued safety and convenience for travelers and protect the airport's position as a major hub for aviation and commerce. I applaud the FAA for keeping this important asset in Boise. This victory is the result of four years of hard work by Idaho's congressional delegation, the late Ed Stimpson, former US Ambassador and Boise Airport Commissioner, and the City of Boise.  It's time to celebrate."

Committee Update
On Thursday at 10:00 a.m., the House Budget Committee will hold a hearing on the Administration’s Expedited Rescission proposal.  Jeffrey Liebman, Acting Director of the Office of Management and Budget, will testify.

House Legislative Business This Week

MONDAY, JUNE 14, 2010
On Monday, the House will meet at 12:30 p.m. for Morning Hour debate and 2:00 p.m. for legislative business with votes postponed until 6:30 p.m.

Suspensions (4 Bills):
1)  H.R. 5502 - To amend the effective date of the gift card provisions of the Credit Card Accountability Responsibility and Disclosure Act (Sponsored by Rep. Maffei / Financial Services Committee)
2)  H.Res. 1409 - Expressing support for designation of June 20, 2010, as "American Eagle Day", and celebrating the recovery and restoration of the bald eagle, the national symbol of the United States (Sponsored by Rep. Roe / Financial Services Committee)
3)  H.Res. 1368 - Supporting the goals of National Dairy Month (Sponsored by Rep. Courtney / Agriculture Committee)
4)  H.Res. 1383 - Honoring Dr. Larry Case on his retirement as National FFA Advisor (Sponsored by Rep. Luetkemeyer / Agriculture Committee)  

TUESDAY, JUNE 15, 2010 AND THE BALANCE OF THE WEEK
On Tuesday, the House will meet at 9:00 a.m. for Morning Hour debate and 10:00 a.m. for legislative business. Shortly after 10:00 a.m., the House will recess for the Former Member’s Association annual meeting. The House will reconvene at approximately 11:30 a.m.

On Wednesday and Thursday, the House will meet at 10:00 a.m. for legislative business.

On Friday, the House will meet at 9:00 a.m. for legislative business.

Suspensions (10 Bills):
1)  H.R. 4451 - Collinsville Renewable Energy Promotion Act (Sponsored by Rep. Murphy (CT) / Energy and Commerce Committee)
2)  H.R. 4855 - Work-Life Balance Award Act (Sponsored by Rep. Woolsey / Education and Labor Committee)
3)  H.Res. 1389 - Recognizing the immeasurable contributions of fathers in the healthy development of children, supporting responsible fatherhood, and encouraging greater involvement of fathers in the lives of their children, especially on Father's Day (Sponsored by Rep. McIntyre / Education and Labor Committee)
4)  H.Res. 1414 - Congratulating Urban Prep Charter Academy for Young Men-Englewood Campus for achieving a 100 percent college acceptance rate for all 107 members of its first graduating class of 2010 (Sponsored by Rep. Rush / Education and Labor Committee)
5)  H.Res. 1322 - Celebrating the 20th anniversary of the Albert Einstein Distinguished Educator Fellowship Program and recognizing the significant contributions of Albert Einstein Fellows (Sponsored by Rep. Michaud / Education and Labor Committee)
6)  H.Con.Res. 242 - Honoring and praising the National Association for the Advancement of Colored People on the occasion of its 101st anniversary (Sponsored by Rep. Al Green / Judiciary Committee)
7)  H.Res. 1422 - Honoring the Department of Justice on the occasion of its 140th anniversary (Sponsored by Rep. Sensenbrenner / Judiciary Committee)
8)  H.R. 2142 - Government Efficiency, Effectiveness, and Performance Improvement Act (Sponsored by Rep. Cuellar / Oversight and Government Reform Committee)
9)  H.Res. 879 - Supporting the goals and ideals of American Education Week (Sponsored by Rep. Minnick / Oversight and Government Reform Committee)
10)  H.Res. 1357 - Commending and congratulating the Hollywood Walk of Fame on the occasion of its 50th anniversary (Sponsored by Rep. Watson / Oversight and Government Reform Committee)   

H.R. 5297 - Small Business Lending Fund Act of 2010 (Subject to a Rule) (Sponsored by Rep. Frank / Financial Services Committee)

Possible Consideration of H.R. 5175 - DISCLOSE Act (Subject to a Rule) (Sponsored by Rep. Van Hollen / House Administration Committee)

Possible Further Action on H.R. 4899 - Supplemental Appropriations Act of 2010 (Sponsored by Rep. Obey / Appropriations Committee)    

In the News
Bernanke Warns of ‘Unsustainable’ Debt
By SEWELL CHAN, New York Times, June 9, 2010

WASHINGTON — When it comes to the deficit, Ben S. Bernanke has a story, and he’s sticking to it.
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Mr. Bernanke, the Federal Reserve chairman, warned on Wednesday that “the federal budget appears to be on an unsustainable path,” but also recognized that an “exceptional increase” in the deficit had been necessary to ease the pain of recession.

In nearly two hours of questioning by the House Budget Committee, however, Mr. Bernanke gave potential succor to members of both parties, while refusing to side with either of them.

To Republicans, he offered warnings about the fiscal perils of an aging population and the potential threat of soaring long-term interest rates. To Democrats, he made it clear that persistently high unemployment was a drag on growth and said that additional short-term stimulus spending might be needed.

All the while, Mr. Bernanke refused to endorse any particular spending cuts or tax increases, or even specify the balance between the two. And he was not subtle about his strategy.

“I’m trying to avoid taking sides on this because it’s really up to Congress to make those decisions,” he told Representative Michael K. Simpson, Republican of Idaho.

“But we need your expertise on it,” Mr. Simpson pressed.

“Well, no,” Mr. Bernanke replied. “Plenty of people have that kind of expertise, including the Congressional Budget Office and others.”

With inflation well below the Fed’s unofficial target of about 2 percent, attention has turned to the other side of the central bank’s mandate: maximizing employment. At the same time, the debt crisis roiling Europe has made deficit-cutting a potent topic.

Mr. Bernanke suggested that the United States had a while longer — but not much — before it would have to pull in the reins.

“This very moment is not the time to radically reduce our spending or raise our taxes, because the economy is still in a recovery mode and needs that support,” Mr. Bernanke told Representative Bob Etheridge, Democrat of North Carolina.

In the next breath, however, he added that continuing deficits risked a “potential loss of confidence in the markets.”

Representative Paul Ryan of Wisconsin, the top Republican on the committee, focused his opening statement on Europe. “What we are watching in real time is the rough justice of the marketplace and the severe economic turmoil that can be inflicted on profligate countries mired in debt,” he said.

But if Mr. Ryan had hoped for similarly dire pronouncements from Mr. Bernanke, he was disappointed.

“If markets continue to stabilize, then the effects of the crisis on economic growth in the United States seem likely to be modest,” Mr. Bernanke testified. “Although the recent fall in equity prices and weaker economic prospects in Europe will leave some imprint on the U.S. economy, offsetting factors include declines in interest rates on Treasury bonds and home mortgages, as well as lower prices for oil and some other globally traded commodities.”

Representative Jeb Hensarling, Republican of Texas, cited the research of the economist Carmen M. Reinhart, who has found that growth tends to stall in countries where the national debt reaches 90 percent of gross domestic product. The United States is at just about that threshold.

“I don’t think there’s anything magic about 90 percent,” Mr. Bernanke said, while noting that in the worst-case projections by the Congressional Budget Office, “debt and interest payments are going to get explosive in 10 or 15 years.”

When Representative Jim Jordan, Republican of Ohio, asked Mr. Bernanke to “talk to me about those tax increases that we know are going to happen,” Mr. Bernanke replied: “We have a recovery under way now. So in the very near term, increased taxes, cuts in spending, that are too large would be a negative, would be a drag on the recovery.”

But he reiterated that “I’m not going to try to adjudicate for Congress” between tax and spending measures.

Mr. Bernanke’s nimbleness in navigating deficit politics reflects his position as the most visible bridge between two administrations, having been appointed by President George W. Bush in 2006 and then reappointed by Mr. Obama to a second four-year term.

Mr. Bernanke has seemed more optimistic, or at least confident, since the crisis peaked in 2008. “As long as we have the confidence of the markets that we will be able to exit from this situation with a sustainable fiscal program, then I think we’ll be O.K.,” he told Mr. Simpson of Idaho.

How long that confidence will last, Mr. Bernanke did not say.

Only after several rounds of back-and-forth did he agree with Representative Chet Edwards, Democrat of Texas, that tax cuts do not entirely pay for themselves. And he danced around with Representative Gerald E. Connolly, a Virginia Democrat, on whether the Obama administration’s $787 billion stimulus package last year was “necessary.” Mr. Bernanke would only say it was “useful.”

“It must be nice to be an economist,” Mr. Connolly replied.