Mr. Chairman, I move to strike the last word. My amendment proposes to move $1 million from Justice General Administration in order to restore funding eliminated from the budget request for the…
Mr. Chairman, I move to strike the last word.
My amendment proposes to move $1 million from Justice General Administration in order to restore funding eliminated from the budget request for the Missing Alzheimer's program. This program is critical to supporting law enforcement efforts to find missing adults suffering from the terrible disease of Alzheimer's.
This is very important because Alzheimer's is a very difficult situation for both the individual with Alzheimer's and the family members. I offer it on behalf of Mr. Mollohan, and I know Congresswoman Maxine Waters strongly, strongly supports the adoption of the amendment.
I do, Mr. Chairman.
Mr. Chairman, I have an amendment at the desk.
Well, I won't repeat myself. The amendment proposes to move $1 million from Justice General Administration in order to restore funding eliminated from the budget request for the Missing Alzheimer's program. It is a very important and very needed program.
Mr. Chairman, with that, I reserve the balance of my time.
Mr. Chairman, I reserve the balance of my time on this side. I know my colleague has a group who want to speak.
Mr. Chairman, I rise in strong support of the amendment again, and I yield back the balance of my time.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, I want to salute the gentleman. He made some very important points. But we have had to make some difficult decisions putting this bill together.
The bill already includes $314 million for the Legal Services Corporation. This used to be politicized. It has not been politicized. It is an increase of $3 million above the President's request. That means we cut $3 million from some other part of the bill to increase funding for the Legal Services Corporation.
There are a number of areas in the bill that we would increase funding for if we didn't have to restore $1.1 billion for State and local law enforcement.
Unlike the Legal Services, which is funded above the request, we have already cut from the request of State Department's Diplomatic and Consular Affairs operations account by $147 million. Our bill provides a modest increase of $77 million or 2.1 percent to cover pay and inflationary costs for the Department.
The only increases that the funding supports are new positions for critical posts around the world to support our national interests in emerging nations like India, China, Egypt and Indonesia.
In addition, we have supported an increase for the Office of Stabilization and Reconstruction and for new critical language training positions.
We are in a global war on terror. This amendment cuts into already reduced amounts to support the diplomatic side of this effort. North Korea has just threatened to test a nuclear weapon. Iran continues its efforts to develop a nuclear program.
Further, this amendment would cut $5 million from the Department of Justice administration account. The bill already reduces that request for general administration by $25 million or 22 percent below the request. The Acting Assistant Attorney General for Administration has written us to inform us that, at the current level of funding in the bill, 58 positions will be eliminated at the Department of Justice headquarters.
Additional cuts will hinder the Department's abilities to effectively manage more than $20 billion in appropriations, operate hundreds of DOJ facilities, manage 100,000 employees and coordinate public policy.
We have done the best we can. We have also got the Manufacturing Extension Program up. We have increased drug courts by 300 percent. So a bill that treats the diverse accounts within our jurisdiction, I think, has been done as fairly as we can. Therefore, I urge the rejection of the amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, there is a lot I want to say. I don't know if I can say it in that much time. The gentleman's amendment would increase Justice Assistance grants by $25 million, reduce Justice General Administration by $10 million, and NOAA by 15. I understand and I appreciate the gentleman's passion for law enforcement. These programs have helped a lot. The bill already includes a $50 million increase for JAG, and an increase of $1.1 billion for local law enforcement above the request. Sometimes it doesn't matter, but it is above the request. And the gentleman's offsets would create some difficulties at Justice and NOAA.
But the gentleman has worked. I think he has made a good point in crafting the amendment. I know he and others would actually prefer higher amendments. There were other amendments rolling around here in the 40 to $50 million range. Somehow, this Congress is going to have to deal with the issues of all of the spending that is coming on and how do we get control.
Now, there will be others to come up, some that are actually good amendments, because they really help people. But we are going to devastate other programs. And it is sort of like Dietrich Bonhoffer with Cheap Grace. You can go into some general administration area that nobody understands
or knows anything about, and then there will be no money for general administrations.
I have introduced a bill, I sent out a Dear Colleague letter asking people to cosponsor a national commission based on the base closing commission with everything on the table to deal with these issues, because it is fundamentally immoral for one generation to live on the next generation and our children and our grandchildren and the whole spending issue. I share what the gentleman from West Virginia said, on some of these amendment passes, and then there is no money for administration, no money for this, and no money for that.
But there is probably not a more sincere individual on this issue, probably because of his work. And my father was a policeman in the city of Philadelphia. I understand these issues, and we want to give our law enforcement the resources, particularly with crime growing up.
So I have no objection to the gentleman's amendment.
If the gentleman would yield, it is a good amendment. We accept the amendment. I think we took it last year too, if I recall. And I thank the gentleman for offering it. And on this side we strongly accept it.
Mr. Chairman, I move to strike the last word.
Mr. Chairman, I rise in support of the amendment.
The gentlewoman's amendment would increase funding for grants to prevent violence against women by $10 million by decreasing funds for the Justice Department's General Administration by $5 million and the Census Bureau by $5 million.
I understand and appreciate the gentlewoman's passion for her efforts to prevent violence against women. The bill already, though, includes a $9 million increase for these programs, but we recognize that an increased investment is important.
I just wanted to say, for the record, although it will be difficult for the Census Bureau, this offset will neither impact the ramp up of the 2010 decennial census nor the American Community Survey.
With that understanding, I have no objection to the amendment.
Mr. Chairman, I rise to claim the time in opposition to the amendment.
Mr. Chairman, I yield myself such time as I may consume.
I rise in strong opposition to this amendment. The 7(a) program has been operating at record levels without subsidy appropriations since the beginning of 2005. If this amendment passes, do not ever go home and say that you are going to balance the budget. Just forget it. This is the ``forget to balance the budget and get control of the budget'' amendment. We have had record loans with no 7(a) fees, and now we want to do this.
The SBA administrator continues to assure us that the program is running strong. I have a letter from them confirming the success at redesigning the 7(a) program so it does not require a subsidy. No good deed goes unpunished. It does not require a subsidy, and we are going to spend all these millions of dollars? How would you ever explain it? How would you say we have got record
numbers, but we are going to subsidize it? Forget it. We would never, ever, ever, ever solve the deficit of this Nation.
The new model has brought down the stability of the lending community and borrowers. This is a ``bail-out the banks'' amendment. Bail out the banks. Only the bankers care about this, a small portion of the bankers, and I do not know if the bankers are writing us about the deficit either.
Demand has skyrocketed. Since lending levels are no longer tied to an appropriation, the program has been able to meet the demand. That, by not being tied, has been able to meet the demand. This is a good government success story.
There is much more that I could say. It goes on and on and on, but I just urge Members, do not pass this amendment. This is the ``how do you spend $100 million without needing to spend it,'' and I guess the question is if we really care about the future generations of our children and our grandchildren. We will never get control of it. I mean, I cannot even believe we are out here doing this. If this were the Violence Against Women or some of the programs that are here that your heart goes out to but you do not have the money, but there is no need for it and they are at record numbers.
I urge a ``no'' vote against this amendment.
U.S. Small Business
Administration,
Washington, DC, June 27, 2006.
Hon. Frank Wolf,
Chairman, Subcommittee on Commerce, Justice, State, the
Judiciary, and Related Agencies, Committee on
Appropriations, House of Representatives, Washington, DC.
Dear Mr. Chairman: I want to thank you again for your
support of America's small businesses. I would also like to
take this opportunity to reiterate the Administration's
strong support for a zero subsidy rate for the U.S. Small
Business Administration's (SBA) 7(a) loan program. In what
will certainly be another tight appropriations cycle, a zero
subsidy rate for 7(a) will save the taxpayers approximately
$170 million, while at the same time providing unprecedented
stability to the program.
In the past, some have expressed unrealized concerns that
zero subsidy would stifle the 7(a) loan program because of a
very slight fee increase required. As you can see from the
enclosed explanation and charts, 7(a) lending has increased
significantly while taxpayer dollars have been saved.
Further, current 7(a) fees--previously a source of
significant industry concern--are in line with historical
rates. Like other costs in business, these fees fluctuate
based on market conditions. In fiscal year (FY) 2007 there
will need to be a slight fee change of .5 basis points. This
equates to approximately $2.80 per month on an average loan
size of $160,000.
It is also important to note that zero subsidy is not only
good for the taxpayer but for the stability of the program,
the most crucial aspect of the program according to borrowers
and lenders. (Zero subsidy began in FY 2001.). As you know,
in January 2004 the SBA was forced to temporarily close the
7(a) program because it had exhausted its funding under the
Continuing Resolution. Once the program was restarted, and
after Congress passed the Consolidated Appropriations Act for
FY 2004, the SBA was forced to manage the program through
restrictive loan caps because demand continued to outpace the
program's funding level. Regardless of the amount Congress
appropriates for 7(a) in any given fiscal year, there will be
the chance that demand could exceed that level, forcing
either another shutdown or caps on loan amounts. By
eliminating the need for an appropriation, potential program
``shortfalls'' may be avoided. Program levels in the form of
authorization limits would still apply, of course.
It should also be noted that SBA's other major loan
programs, Section 504 Guarantee Program and Small Business
Investment Company (SBIC) Guarantee Program., have functioned
at zero subsidy for several years. This provides our lending
partners with what they want most from our loan programs--
consistency and continuity.
Mr. Chairman, zero subsidy for the 7(a) program is a
simple, common-sense approach that has brought the program in
line with our other major financial programs. Zero subsidy is
still the best policy for the long-term stability and growth
of the 7(a) loan program. We have been able to maintain
record lending during the past few years under zero subsidy.
Lending has not been hampered by appropriations shortfalls,
such as those that occurred in 2003 and 2004. For these
reasons the Administration urges you to continue the
successful zero subsidy policy in the FY 2007 Appropriations
bill.
Sincerely,
Hector V. Barreto,
Administrator.
Zero Subsidy--The Best Policy
Zero subsidy is still the best policy for the long term
stability and growth of the Small Business Administration's
various loan programs. The SBA has been able to maintain
record lending during the past few years under the zero
subsidy policy. The benefits of zero subsidy also results in
a funding structure that adds stability and independence
while ensuring that the lending process is not hampered by
appropriations shortfalls such as those which occurred in
2003 and 2004.
In FY 2005, the SBA served more small businesses than ever
before. In SBA's two major loan programs, they increased the
numbers of loans funded by 22% in one year. These record
level lending numbers are possible because of the zero
subsidy policy that was adopted at the beginning of FY 2005.
The SBA guaranteed a record number of loans last year, with
double digit increases in the percentage of loans to women,
Hispanics, African Americans and Asian Americans. Maintaining
zero subsidy wi1l allow the SBA to build on the success
they've had in these important loan programs, and will
provide more businesses with the capital needed to start up
and expand.
Moving to zero subsidy allowed the Agency to continue to
meet the financing demands of small businesses without the
need for taxpayer subsidy. In today's tough budget
environment, SBA has proven their ability to provide more
loans to small businesses and entrepreneurs while reducing
the burden on taxpayers.
Mr. Chairman, I yield 4 minutes to the gentleman from Illinois (Mr. Manzullo), chairman of the Small Business Committee, who has convinced me of the merits of this.
I yield 2 minutes to the gentleman from Illinois (Mr. Manzullo).
Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, where do they get this money from? $5.9 million would be provided to cover the cost for blast mitigation in windows at the Department of Commerce. So you are basically saying to the Department of Commerce, we don't care if there is a blast here; you can't get your blast windows. You can't get your windows, so you can give a subsidy to the banks that will give no additional loans.
Also, this will result in RIFs at the Small Business Administration. So if you don't want loans to go to the small businesses, support this amendment, because there will be RIFs and they won't be able to make the loans. Zero subsidy means more loans. Loans are up almost 20 percent from 2005 over 2004.
I think the people at the Department of Commerce have every right to have the same protection that the people in this building have. They are not second-class citizens. They are covered by this bill. They need blast protection windows. Also it is not right to RIF the employees at the SBA to give a subsidy to bankers who don't need the subsidy.
Lastly, don't ever give another deficit reduction speech if you vote for this amendment. Don't ever, ever give
it, because the loans are up with it; and actually the adoption of this may very well reduce the loans.
So I urge Members to vote ``no'' on this amendment.
Mr. Chairman, I rise in opposition to the gentleman's amendment.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, our Members should know that this cuts the Justice Department litigating division by $40 million. The bill already cuts this account by $16 million below the level requested. This account that they are cutting funds critical justice litigating activities such as the criminal division. Wow, this is good news for the criminals, because they will not be litigated; we are going to cut the funding.
To combat gangs. Gangs are spreading. MS-13 are spreading around the Nation. But we cut it. Prosecute intellectual property rights crimes. Wow. Are you going to cut Katrina fraud cases. No way. The civil rights division prosecution of human traffickers. Women and children are being trafficked. Justice prosecutes, but we are going to cut the money so they cannot do it.
For all of you who care about the environment, the environmental and natural resources division prosecution of organizations that violate our environmental laws go away. The tax division prosecution of tax fraud, impacted. This account also funds the U.S. dues for Interpol. We are in a global war on terror. We need to work with Interpol. So we cut them.
The Name Checks that the gentleman is concerned about are funded through a fee. There is a backlog in the Name Checks Program because the fees the FBI charges are not sufficient to adequately cover the cost of the program.
In the fiscal year 2006 report, we directed the FBI to review this fee structure and submit a report to the Committee. The fee review is ongoing and a report is estimated to be submitted in August. In addition to this year's bill, we also include additional report language in this bill directing the FBI to work with the agencies that request these background checks to ensure that sufficient resources are made available to eliminate the backlog.
The gentleman is on the authorizing committee that oversees the FBI and immigration issues. If he wants to address the issue, he would go to the Judiciary Committee that he serves on, introduce a bill, try to convince Mr. Sensenbrenner to deal with it.
This amendment also would cut 200 employees; we just added Justice Assistance grants here not too long ago, because we are concerned about crime. This would cut more than 200 employees working to combat crime such as organized crime, gangs, human traffickers, Katrina fraud, and environmental crimes in order to fund the FBI Name Checks that are fee- funded.
This would be a blow to the Justice Department litigating capacity. If you wanted to say do not prosecute organized crime, do not worry about the environmental convictions you have to go after, do not worry about the tax frauds, how will you do it then? You cannot say you are going to go after them and take their money away.
Mr. Chairman, I strongly urge a ``no'' vote for this amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield the balance of my time to the gentleman from West Virginia (Mr. Mollohan).
Mr. Chairman, will the gentlewoman yield?
Mr. Chairman, I accept the amendment. The committee, working with Mr. Mollohan, has tried to increase this as much as possible. I would urge any Member that has not been out to the Center for Missing and Exploited Children in Alexandria, that they ought to go. As a father of 11 grandchildren, I commend both of you and thank you very much and think we should accept the amendment.